01-09-2006 - Laserfiche WebLink

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Through various discussions and meetings, the terms of an amended contract are being developed for the Mounds View EDA’s consideration. By combining Phase 1 and 2, the initial phase of the project would be significantly increased. The number of employees would be increased from approximately 3,000 to over 4,300. The building complex would be increased from 820,000 square feet to 1.2 million sq. ft. (+46%), and the Minimum Assessment Agreement would increase accordingly. It is projected that 60% of the construction will be completed a year from now and 100% in two years. Medtronic has requested 95% of the available tax increment from the entire development (Phase 1 and 2), the same percentage that was used in the current agreement. Medtronic would continue to finance their development costs up front and would receive tax increment on a pay-as-you-go basis at the same interest rate. Under the amended contract, fiscal disparities would continue to be paid inside the district (that is, B election). Ehlers & Associates, the City’s TIF financial advisors, are carefully reviewing all qualified costs in a manner consistent with the original agreement. Also, the length of the TIF District would remain the same (25 years). The largest single difference with a combined project would be the amount of costs allocated to structured parking in Mounds View. In return for TIF assistance, the City would receive the following considerations under the amended terms: 1) Medtronic would reimburse the City for administrative costs associated with the amended agreements. 2) Medtronic would be responsible to construct water and sewer utilities to the site that was previously the City’s responsibility ($400,000 est.). 3) Medtronic would pay 100% of the cost to relocate all four billboards, including the previously agreed City’s portion ($550,000 est.). City staff has been meeting with Clear Channel representatives regarding the billboards and their relocation elsewhere in the City. Clear Channel has indicated to the City that they intend to submit within the next two weeks a package with multiple site locations for the billboards in question. 4) If the buyout alternative has to be undertaken for the billboards, Medtronic would pay all costs associated with the four signs (the net additional contribution by the Company is $825,000 if three signs or $1,650,000 if four signs). 5) Medtronic would consider financially participating in providing additional infrastructure for the City. Examples include construction of a portion of a sound wall along Highway 10 (Segment C, by the Laport Meadows residential area with an estimated cost of $430,000), replacement of Well #4 (with an estimated cost of $545,000), and/or utility costs that exceed the $400,000 estimate. 6) If trail costs on the former Sysco property are deemed excessive by the City, Mounds View would not be required to construct the trail and the designated funds would remain for other park uses. If Medtronic wants the trail constructed, Medtronic would pay for the trail costs in excess of $150,000 allocated from the Park Dedication Fee.