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Mounds View EDA February 13, 2006 Regular Meeting Page 4 taxpayers. 130 131 President Marty noted that a benefit of consolidation is that it will make Medtronic much more 132 efficient, because in the past there were five different sites that needed to be coordinated. 133 134 President Marty explained if TIF is decreased to $4 million from $8.1 million, the TIF value 135 would be $18.8 million. He explained at $80 per square foot it would be paid off in 2028, and at 136 $100 per square foot, it would be paid off in 15.5 years. Mayor Marty pointed out that with the 137 original cap of $14.89 million and with the additional $8.1 million, the combined TIF value 138 would be $22.9 million. He stated the original interest was $16.9 million, and now the interest 139 will be $21.3 million, resulting in a total of $44.2 million. 140 141 President Marty noted if the City did not give Medtronic TIF, this would make the TIF district 142 pay off that much sooner. He noted that property taxes in Phase 1 would have been $563,000 143 and the school districts in Phase 1 would receive $163,000 per year. He noted because it is a TIF 144 district, it does not pay off until 2033. He stated he wished to put the project on the tax rolls to 145 affect the citizens of Mounds View as quickly as possible. President Marty noted that he does 146 not think Medtronic would walk away from the project, but rather they need Phase 2 right now in 147 light of demands in cardiac rhythm management and the State putting in $20.5 million for streets 148 and roads. He stated the State moved up County Road J 20 years ahead of schedule and it was 149 his understanding that 35W is now on the radar map. 150 151 President Marty questioned the excess increments, and suggested it is not bonding if taxes are 152 higher and noted that it does seem to be paying off sooner. He asked if this would all go into the 153 TIF district to help it pay off sooner and once it is paid off, if it reverts to the County Auditor for 154 redistribution. 155 156 President Marty stated that in regard to the transportation issues relating to the proposed 157 development, the development did not review or take into consideration excess traffic on City 158 streets. 159 160 President Marty noted the fiscal disparities inside the TIF district and asked if August 1, 2007 is 161 when the first note for the TIF district will be issued. He stated this assumes the first tax 162 increment for the District will be in 2008, and pointed out that although the property was sold in 163 2005, it will not be effective until 2008. 164 165 President Marty stated that he has never seen the TIF application for Medtronic Phase 1 and/or 166 Phase 2. 167 168 President Marty asked for clarification if most of the new jobs in Phase 1 were transfers, and that 169 most of the new jobs in Phase 2 would be newly created jobs. 170 171