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