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Mounds View EDA May 9, 2005 Regular Meeting Page 6 percent inflationary that Staff used on the golf course projections. He stated that the land value, 214 at the end, would be $16.5 million noting that with depreciation of the account, it would be free 215 of being necessary for defraying costs by 2019 and would be able to stand on its own. He 216 explained that his reason for bringing this up is because the numbers have been presented noting 217 that the total value of the land and assets along with the fixed assets, would be, at a minimum, 218 $26.2 million in equity. He stated that he is curious as to why the City of Mounds View would 219 let this jewel slip through their fingers when the numbers from Staff show a worth of $26 million 220 in TIF alone. 221 222 Barbara Haake, 3024 County Road I, acknowledged that Medtronic is a fabulous company 223 adding that she has a couple of questions. She noted that Medtronic has a beautiful campus 224 located in Fridley and asked why they did not expand in Fridley. She stated that she did some of 225 her own research on the assessment agreement with Anoka County stating that she found out that 226 there were areas available but that Medtronic did not want to pay the square footage amount. She 227 stated that it was her understanding that certain areas were also removed from the equation and 228 asked if this was true. She stated that rumor has it that they were only paying $80 per square foot 229 on the property and that Fridley could have sued. She asked for further clarification on the 230 assessment agreement. She asked for clarification on the calculations used to determine the park 231 dedication fees noting that the agreed amount is $600,000 and with a property valued at $8.5 232 million, based on the 10-percent calculation, shouldn’t the amount for park dedication fees 233 actually be $850,000. She asked if there were legal reasons that they were not able to use the 10-234 percent calculations noting that other businesses had to pay a 10-percent park dedication fee. She 235 stated that in summary she would like to know why Medtronic did not expand in Fridley; How 236 were they able to negotiate the conference and café square footage; and how did they come up 237 with the park dedication fee numbers. 238 239 Mr. Mahle explained that there was not enough room in Fridley for the size of the facility they 240 want to build. He stated that the initial project would be 840,000 square feet noting that they 241 would require additional space to expand up to 1.5 million square feet. 242 243 Mr. McCombs further explained that corporations have to plan for their future and Medtronic is 244 trying to project out how best to take care of their growth over the next ten to twenty years. He 245 stated that this move would help to address their growth needs over the next few years. He 246 referenced the assessment agreement in Anoka stating that there are different ways used in how 247 they calculate square footage, which was part of their discussion, through mediators, with Anoka. 248 He stated that through these discussions both parties agreed to numbers that were deemed 249 appropriate for that site. 250 251 City Administrator Ulrich acknowledged that the park dedication is less than the 10-percent used 252 as a standard for smaller projects. He acknowledged that there were legal issues and explained 253 that Staff did review other Communities to help determine the percentage that would be used, on 254 average, to determine park dedication fees in a project of this size. He stated that Staff is willing 255