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Mounds View EDA January 23, 2006 Regular Meeting Page 13 million. Based on the new calculations, updates, and tax generation numbers, that $6.7 million 508 will grow to about $30.4 million. 509 510 President Marty referenced Page 3, Phases 1 and 2, financial analysis. He noted that for Phase 1 511 it indicates with a 3% revenue growth it would net $5,588,000, and for Phase 1 and 2 together it 512 is $6,724,000. So, by adding Phase 2 the difference is $1,136,000. President Marty noted, as he 513 has stated before, Phase 1 was $14.8 million as a cap and for Phase 2, which is more than one-514 half of Phase 1, it is another $8.1 million so it would only change the difference by $1.136 515 million. He stated that it does not seem to be as large of a jump as it should be for $8.1 million. 516 517 Economic Development Coordinator Backman stated that is an “apples versus oranges” 518 comparison. He pointed out that the EDA is not selling the land twice and that proceeds 519 generated the bulk of the $5.5 million. The $1.1 million reflects savings on relocation costs and 520 utility savings as well. 521 522 President Marty questioned Page 3, item 14, of the Medtronic term sheet that states: “New 523 language will be added to the agreement regarding any tax court petitions. To adjust value 524 Medtronic is required to notify the City of tax court petitions filed with the tax court on the 525 development property. Language will be added that the City will continue to make TIF payments 526 to Medtronic based upon the minimum assessed agreement value in place at the time and any TIF 527 available for payment will be withheld until the petition is resolved by the court.” He stated in 528 the Medtronic term sheet, it sounds like Medtronic is already planning to petition the courts on 529 the assessments just as they did in Fridley. 530 531 Shelly Aldrich, Ehlers & Associates, stated this new language was her idea because it will protect 532 the EDA from having to deal with the situation that occurred in Fridley. She explained the 533 language is saying that Medtronic cannot petition underneath the minimum assessment 534 agreement, which is State law. At this point, the County’s process is to withhold the amount of 535 the petition from the minimum assessment agreement. But if the County were to change that 536 practice and if Medtronic were to pay the full amount when the petition comes due later on and 537 the County settles the whole amount, this language says the City would only have to pay the 538 minimum assessment agreement. If there is a petition from the County and they get more money 539 from the County assessment agreement, then the City is not required to pay that extra amount. 540 She explained this language is directly coming from the situation in the City of Fridley. 541 542 President Marty stated that makes him feel more comfortable. 543 544 Commissioner Gunn stated she remembers that conversation from a past meeting. This is the 545 very thing that was discussed and explained why this language was being included. 546 547 Ms. Aldrich explained that this language will protect the City from getting into any negative 548 financing or paying out what they don’t have. She also noted the minimum assessment 549