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Mounds View EDA February 13, 2006 Regular Meeting Page 5 Roger McCombs, Medtronic, stated that Phase 2 is another extension and will have the same proportion of jobs as Phase 1. President Marty stated he thought that 400-700 new jobs were created each year over the past several years. Mr. McCombs responded that 300-350 jobs on average are added in Minneapolis/St. Paul per year. President Marty stressed if the TIF was kept at a lower amount, this would be a great boost to the taxpayers and this project would pay off that much sooner. Vice-President Stigney stated by accelerating this project, it will increase the project’s value to $96 million for Phase 2. He commented by Phase 1 and 2 occurring at the same time, it is a “win-win” situation for Mounds View. He stated he was thankful for Medtronic coming into the City. Commissioner Thomas stated that Medtronic is coming in and is going to adjust their development based on the assistance they are going to get. She stated the City will get less value if it gives less TIF assistance. She stated these are the terms that were discussed and negotiated. She stated she is supporting the development as it is set. Commissioner Flaherty stated there was concern if Phase 2 and Phase 3 were going to happen, and TIF levels were not discussed at that time. He stated Medtronic is a company that is negotiating with the City in good faith, and the City is negotiating with Medtronic. He stated that by rolling Phase 1 and Phase 2 into the same time slot as Phase 1, the TIF district will be reduced by five to six years. He stated this is not even mentioning all of the other bonuses the City is getting, such as the repair of Well Number 4 which would have cost the City $445,000 and was something the City needed to do anyway. He added that additional funds are going into the street infrastructure fund. He added he hopes the Medtronic employees will live in the City of Mounds View, as often employees like working close to home. He stated he sees the development as a tremendous benefit to Mounds View. Councilmember Gunn stated her support for the development. President Marty stated Medtronic is contributing to the streets and has pledged to contribute $355,000. He noted he finds this admirable and recognized that it was not required; however, as stated previously, if this was not in a TIF district, the City would be getting $560,000 per year. He stated the $355,000 is to cover a 25 year period and is very good, but compared to when the district is finally paid off, it will only be a fraction of that. Ayes – 4 Nays – 1 (Marty) Motion carried. 8. REPORTS