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Mounds View EDA February 13, 2006 Regular Meeting Page 2 6. CONSENT AGENDA 46 47 No items were removed from the Consent Agenda. 48 49 A. Set a Public Hearing for Monday, February 27, 2006 at 6:00 pm to Consider 50 the Amended and Restated Development Agreement and Modification to the 51 Business Subsidy Agreement for the Medtronic CRM Project. 52 53 B. Establish an Executive Session of the EDA immediately following conclusion 54 of the City Council meeting, Monday, February 13, 2006, to consider 55 negotiations relating to the possible acquisition of 2390 County Road 10. 56 57 MOTION/SECOND: GUNN/THOMAS. To Approve the Consent Agenda, as presented. 58 59 Ayes –5 Nays – 0 Motion carried. 60 61 7. EDA BUSINESS 62 63 A. Consideration of a Modification to the Project Plan for the Mounds View 64 Economic Development Project and the Proposed Modification of Tax 65 Increment Financing District No. 5. 66 67 Economic Development Coordinator Backman explained the potential to accelerate Phase 2 of 68 the Medtronic CRM Headquarters in Mounds View. 69 70 Economic Development Coordinator Backman stated that the development agreement signed by 71 Mounds View EDA and Medtronic provides $14.8 million in TIF assistance to Medtronic to 72 implement the first phase of the three phase development. He explained that additional TIF 73 assistance may be requested by Medtronic for Phases 2 and 3. He noted that Ehlers and 74 Associates prepared a financial analysis and it is essentially the same document that was 75 approved on August 22, 2005. He stated that changes include the increase from 820,000 to 1.2 76 million square feet of building space, an additional $30,400,000 in market value, $1.7 million in 77 new tax capacity upon project completion, and an increase in the TIF Note from $14.8 to $22.9 78 million. He commented that the increase in the TIF Note reflects greater development costs for a 79 significantly larger initial development phase. 80 81 Economic Development Coordinator Backman stated that some people may wonder what the 82 benefits of accelerating the development and the benefit of having thousands of employees in 83 community are. He stated Medtronic is a unique company and opportunity for the City of 84 Mounds View. He noted that Medtronic focuses on innovation. Economic Development 85 Coordinator Backman stated that research and development leads to new technologies, 86 contributes to economic growth and enhances competitiveness. He noted the two Minnesota-87