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Mounds View EDA April 11, 2005 Regular Meeting Page 2 46 Economic Development Coordinator Bachman informed that last year the Mounds View City 47 Council considered various alternatives to operating the golf course as is, and one option 48 included the sale and redevelopment of the site. He stated that the Council’s priority was to 49 enhance the City’s financial position, and the debt associated with the golf course is about $4. 50 He stated that Medtronics has indicated they would like to build a new Cardiac Rhythm 51 Management Campus, and that the first phase involves the construction of 820,000 square feet of 52 office space in several buildings. He stated that the City Council authorized staff to pursue 53 various actions, including commitment research, wetland delineation study, commercial 54 appraisal, boundary and topographic surveys, and alternative urban area-wide review process, 55 and a comprehensive plan amendment. He indicated the sale price of the property is $8.65 56 million, which excludes park dedication and other customary fees. He stated that the reverter 57 clause legislation was introduced as passed the Senate and is working its way through the House. 58 As part of the legislative process, a payment to the Minnesota Trunk Highway Trust Fund has 59 been negotiated with Medtronic agreeing to contribute $1 on behalf of the City. He stated that 60 Tax Increment Financing legislation for the project has passed the Senate and awaits House 61 action. He stated it is projected that increment generated would result in total payments to 62 Medtronic of between $14 and $15 million over 25 years for eligible development costs. 63 This is only 34 percent of the property taxes Medtronic will pay; the rest goes to the state. 64 He stated that negotiations will continue with Clear Channel regarding the removal and 65 relocation of some or all of the billboards. He stated that a traffic impact study reviewing traffic 66 information costs and capacity analysis for the proposed Medtronic development was completed. 67 Phase 1 development is projected to generate 8,300 vehicle trips a day onto County Road J. 68 Ramsey County will be taking the lead in the road improvements and is currently preparing an 69 RFP for design work. He stated that Governor Pawlenty signed the state bonding bill this 70 afternoon, and appropriations are in the bill to provide funds to improve County Road J and other 71 roads impacted by Medtronic and other developments in Blaine and Shoreview. He stated that 72 the Mounds View EDC supports the redevelopment of the Bridges and ranks the Medtronic 73 campus as the number one economic development priority, the reason being that private industry 74 represents the engine of economic development. Business creates services, products, income, 75 employment, and tax base. He stated that Medtronic is a solid business, and last year its sales 76 grew 16 percent. He stated the office complex would be Medtronic’s largest in the world, and it 77 would pay its employees an average of $70,000 per year for high quality jobs. He stated that the 78 City’s proposed assistance as outlined in the handout is commensurate with Medtronic’s capital 79 investment, job creation and wages. 80 81 David Etzwiler, Senior Director of Government Affairs for Medtronic, stated that Medtronic is a 82 company providing long life solutions for the treatment of chronic disease. He stated their roots 83 were in the treatment of heart disease, but in the last five to six years the company has 84 significantly diversified. He stated that Medtronic has 33,000 employees world-wide and does 85 business in 120 different countries. He stated there are approximately 6,800 employees in 86 Minnesota, and they are adding approximately 300 employees a year in Minnesota. He stated 87