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Mounds View EDA December 12, 2005 <br />Regular Meeting Page 2 <br /> <br /> C. November 28, 2005, EDA Minutes 45 <br /> 46 <br />MOTION/SECOND: Marty/Gunn. To Approve the November 28, 2005 Minutes as presented. 47 <br /> 48 <br /> Ayes –5 Nays – 0 Motion carried. 49 <br /> 50 <br />6. CONSENT AGENDA 51 <br /> 52 <br /> A. The EDA Meeting scheduled for Tuesday, December 27, 2005 is canceled. 53 <br /> 54 <br />MOTION/SECOND: Gunn/Flaherty. To Approve the Consent Agenda, as presented. 55 <br /> 56 <br /> Ayes –5 Nays – 0 Motion carried. 57 <br /> 58 <br />7. EDA BUSINESS 59 <br /> 60 <br />A. Review Medtronic CRM Development Project Acceleration; Request City 61 <br />Council Establish a Public Hearing to Consider a Proposed Modification to 62 <br />TIF District 5 63 <br /> 64 <br />Community Development Director Ericson reviewed that at the meeting of November 28, 2005, 65 <br />staff brought forward information that Medtronic was considering options of constructing 66 <br />additional space in the metro area and are considering construction of Phase 2 concurrent with 67 <br />the construction of Phase 1 in Mounds View. At that meeting, the EDA directed staff to review 68 <br />that option so staff worked with Ehlers & Associates to conduct an analysis regarding the 69 <br />financial ramifications of a combined Phase 1 and Phase 2 project. 70 <br /> 71 <br />Director Ericson explained that Phase 2 is for 380,000 square feet and two additional levels to 72 <br />the parking ramp. It would result in an additional $30 million in property values and the phases 73 <br />together it would be $96 million of project value. TIF generated based on a $96 million project 74 <br />is $22 million. Director Ericson stated the City authorized an agreement with Medtronic for 75 <br />Phase 1 for $14.8 million so the difference with including Phase 2 is $7.2 million. 76 <br /> 77 <br />Director Ericson noted that Medtronic has $25 million in reimbursable or qualified costs for 78 <br />Phase 1 and would be reimbursed only $14.8 million dollars. To determine the impact to 79 <br />combine Phases 1 and 2, staff set aside Phase 1 and then looked at Phase 2 to see what it would 80 <br />bring in for additional increment. Staff determined Phase 2 would provide $7.2 million in 81 <br />additional increment and the only qualified costs to Phase 2 construction are the two levels of the 82 <br />parking ramp, costing about $8 million dollars. 83 <br /> 84 <br />Director Ericson explained that in return for this consideration, Medtronic would assist in City 85 <br />expenses for the project. Medtronic would pay for the cost to extend the utilities on their 86