05-22-2006 - Laserfiche WebLink

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Mounds View EDA March 27, 2006 Regular Meeting Page 2 Medtronic campus project, the City of Mounds View sought legislative action during the 2005 Legislative Session to eliminate the reverter clause on the former MnDOT property. Economic Development Coordinator Backman noted that MnDOT obtained an appraisal on the 40-acre parcel that indicated the value was approximately $3,470,000 or $86,000 per acre. He explained discussions between the Federal Highway Administration and MnDOT determined that 64 percent of the value was the “federal interest” that would be subject to the reverter clause. He stated that following negotiations, it was agreed that any dollar amount above the $1 million paid by Medtronic on behalf of the City, would not be borne by the City or Medtronic. He stated that the Administration would support a supplemental budget appropriation during the 2006 Legislative Session to satisfy the federal interest. Commissioner Gunn arrived at 6:36 p.m. Economic Development Coordinator Backman explained that in March 2006, the governor submitted the supplemental budget recommendations, which included a transfer of $1.2 million from the General Fund to the Trunk Highway Fund for consideration for land conveyed. Economic Development Coordinator Backman explained that State Representative Connie Bernardy is seeking to add amendments to the Governor’s supplemental budget bill that will direct $1.2 million to specific projects that would benefit the City of Mounds View and surrounding communities. He noted that State Representative Connie Bernardy specifically is requesting that $400,000 be directed to the proposed Noise Wall Extension on the south side of State Highway 10, and $821,000 be directed to the North I-35W Corridor Design Concept. He explained the latter is a Scoping Study that would identify and evaluate design concepts for I- 35W, including Trunk Highway 10 and the County Road J/Lake Interchange. Economic Development Coordinator Backman explained the $400,000 appropriation for the sound wall is in addition to the $300,000 that MnDOT has programmed for the project. He stated the City of Mounds View will pay sound wall project costs that exceed $700,000. He explained that in discussions with Ehlers, a local match for the sound wall is a TIF eligible activity. He noted that the legislation has the support of DEED and Medtronic. He commented that both parties are willing to speak to legislators in support of the specific amendments. Economic Development Coordinator Backman explained this is an opportunity for the City to solve the longstanding problem for the Laport Meadows neighborhood. He noted these supplemental dollars will get spent on road-related projects. He stated the question is what projects they get spent on. Economic Development Coordinator Backman offered to answer questions. Vice-President Stigney asked why MnDOT would not pay the additional costs instead of just $400,000. Economic Development Coordinator Backman stated it has to be recognized that this