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Mounds View EDA January 23, 2006 Regular Meeting Page 8 increased from approximately 3,000 to over 4,300. The building complex would be increased 298 from 820,000 square feet to 1.2 million square feet. He noted that the Minimum Assessment 299 Agreement would increase accordingly to $96 million. 300 301 Economic Development Coordinator Backman advised that Medtronic has requested 95% of the 302 available tax increment from the entire development (Phases 1 and 2), the same percentage that 303 was used in the current agreement. The available TIF increment for the revised project would be 304 $22.9 million. Thus, by combining the two phases, the TIF note issued by the Authority would 305 increase by $8.1 million. 306 307 Economic Development Coordinator Backman stated that Medtronic would continue to finance 308 their development costs up front and would receive tax increment on a pay-as-you-go basis at the 309 same interest rate as discussed in the first agreement. Under the amended contract, fiscal 310 disparities would continue to be paid inside the district, the same as agreed with the original 311 agreement. The length of the TIF district would remain the same at 25 years. 312 313 Economic Development Coordinator Backman explained that in return for TIF assistance, the 314 City would receive the following considerations: 315 316 1. Medtronic would reimburse the City for administrative costs, estimated at $150,000. 317 2. Medtronic would be responsible to construct water and sewer utilities to the site that 318 was previously the City’s responsibility. In other words, Medtronic would pay the 319 $400,000 that the City was obligated to pay. 320 3. Medtronic would pay 100% of the cost to relocate all four billboards, including the 321 previously agreed City portion, estimated at $550,000 322 4. If the buyout alternative has to be undertaken for the billboards, Medtronic would pay 323 all costs associated with the four signs. 324 5. Medtronic agrees to provide the City up to $545,000 for the replacement of Well #4 325 to ensure adequate water supply. 326 6. Medtronic agrees to contribute $355,000 to the City’s Street Reconstruction Fund to 327 help offset any traffic impacts on local roads due to the Medtronic project. 328 7. If trail costs on the former Sysco property are deemed excessive by the City, Mounds 329 View would not be required to construct the trail and the designated funds would 330 remain for other park uses. If Medtronic wants the trail constructed, Medtronic would 331 pay for the trail costs in excess of $150,000. 332 333 Economic Development Coordinator Backman stated staff is looking for re-affirmation regarding 334 the proposed terms of the amended contract for Phase Two acceleration of the Medtronic CRM 335 Campus. If the proposed terms meet the expectations of the EDA, the next step would be to 336 present them as part of an amended Development Agreement that will be discussed by the City 337 Council at the public hearing scheduled for February 13, 2006. 338 339