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Mounds View EDA April 25, 2005 Regular Meeting Page 3 are present this evening to provide the Commission and public with an overview of the golf 87 course numbers, how much money is generated through the billboards and its future financial 88 value to the City. He clarified that this meeting is to review the golf course numbers noting that 89 numbers associated with the Medtronic project would become public and discussed at a future 90 EDA meeting. 91 92 City Clerk/Administrator Ulrich reviewed the following questions and provided clarification and 93 answers: 94 95 • Question: Clarify the percentage of taxable properties in tax increment districts. 96 o Answer: Currently 16.9% for 2005 and 21.53% in 2004. 97 • Question: How much do TIF districts gain when it goes into tax increment? 98 o Answer: City Clerk/Administrator Ulrich explained that it does not go directly to the 99 General Funds in support of the community. He stated that last year $1.8 million was 100 tax increment\tax capacity and the prior year was $7.5 million. He stated that Tax 101 Increment District 1, which covers the southeast area of the City and the Industrial 102 Park area, expires in 2013, District 2 expires in 2015 and District 3 expires in 2014. 103 • Question: What are the percentages if the Medtronic project numbers are added to the 104 proposed development. 105 o Answer: City Clerk/Administrator Ulrich stated that Medtronic would be 24.5%. He 106 stated that no decisions have been made with respect construction costs noting that 107 the tax increment would be subjected to a tax. 108 • Question: Where do they rank in terms of the highest percentage and TIF? 109 o Answer: City Clerk/Administrator Ulrich stated that the City of Mounds View is 110 ranked 11th in the State for TIF noting that in terms of percentages the City was 111 ranked 1st for 2005. 112 • City Clerk/Administrator Ulrich clarified that the Bridge is part of TIF District 3. He 113 indicated that Legislation has a proposal that would expand the districts to four or five for 114 the construction of Phase 1 of the Medtronic project. He explained that subsequent 115 phases would require City approval. He indicated that 72-acres and 40-acres would be 116 deeded to the City with the provision that the land would be used for public purpose. He 117 stated that Legislation would remove the requirement to allow sale of the property. 118 • Legislation Update: City Clerk/Administrator Ulrich explained that the Capital Bonding 119 Bill is necessary for the improvements required for County Road J, the Interchange and 120 Airport Road. He noted that the monies for the project are included in the current Capital 121 Bonding Bill, if the project goes through. 122 • Question: Is it possible for property to be developed without tax increment. 123 o Answer: City Clerk/Administrator Ulrich confirmed stating that they are currently 124 reviewing several options that could be used to pay for the development without the 125 tax increments. He stated that it is expensive but not prohibitive to do the project 126 without tax increment funding. He stated that it would cost approximately $400,000 127 to bring water and utilities to the site noting that Medtronic would pick up the costs 128