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Mounds View EDA January 23, 2006 Regular Meeting Page 9 Vice President Stigney asked if the $8.1 million additional project would bring in $22.9 million. 340 He noted that the last set of minutes indicated that Medtronic was waiting for a feasibility study 341 to get a better number to work with and asked if that has been accomplished. Economic 342 Development Coordinator Backman stated the City has been undertaking several feasibility 343 studies. One study was for the water and sewer extensions. He stated he has not seen a written 344 report but was told by Bonestroo that their estimate for extension of water and sewer was 345 $390,000. Staff had used an estimate of $400,000 as the City’s cost so the numbers are still 346 holding relative to that. Economic Development Coordinator Backman stated it is likely that the 347 total $355,000 would go into the street improvement fund. 348 349 Vice President Stigney asked whether $22.9 million is a solid number at this time. Economic 350 Development Coordinator Backman answered in the affirmative. 351 352 President Marty stated the staff report indicates that Phase 2 is 46% of the size of Phase 1. 353 Economic Development Coordinator Backman explained that the estimate for the building would 354 go from $820,000 to $1.2 million, which would be approximately that percentage. 355 356 President Marty reviewed that for Phase 1, Medtronic was granted $14.8 million. He noted that 357 one-half of Phase 1 would be $7.4 million, not $8.1 million. He stated he cannot see how 358 construction costs would be that much greater due to the fact they are being constructed at the 359 same time. President Marty stated during discussion on this last summer and fall, he had asked 360 this question several times as to whether Medtronic will come back for Phase 2 or Phase 3, what 361 are we looking at. President Marty stated he was told by Community Development Director 362 Ericson that all the infrastructure and everything would be in place so there would be minimal 363 charges, probably in the range of $2 million to $3 million. President Marty noted this figure is 364 almost triple or at least double from a few months ago; $8.1 million in his figures is not even 365 close to $2-3 million. 366 367 President Marty stated on Item 6 it indicates that Medtronic agrees to contribute $355,000 to the 368 City’s Street Reconstruction Fund to help offset traffic impacts on local roads. He pointed out 369 that is a one-time offering so, in other words, it is divided by 26 years. President Marty stated if 370 the City was not using TIF in this project, the City would be getting approximately $400,000 to 371 $500,000 in taxes from this project per year. So, this $355,000 contribution is almost like their 372 donation of $100,000 to the school whereas if they were not using TIF the schools would get in 373 excess of $160,000 a year. 374 375 Commissioner Thomas stated the EDA needs to clarify its thinking because this is not a 376 discussion of the Phase 1 TIF, which has already been approved and gone through the process. 377 She noted the EDA is now talking about Phase 2. She asked the EDA to keep that in mind when 378 talking about the difference in tax base for development that is already going to be there, and 379 now adding Phase 2. She stated the numbers need to be recalculated but when talking about 380 what they would added for road improvements, it would only be for Phase 2 and the discussion 381