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Mounds View EDA June 27, 2005 Regular Meeting Page 9 President Marty called the meeting back to order at 7:05 p.m. 340 341 Mr. McCarty referenced the park dedication fee, he stated that he understands that the agreement 342 states that the park dedication fee would be calculated on the basis of $8.6 million paid by 343 Medtronic and that they would pay the balance of $1 million to the State Highway Fund in favor 344 of the city. He stated that the bill that was passed under Minnesota Statutes that authorized this 345 special legislation is that the Commissioner of Transportation shall convey to the City of Mounds 346 View all right and title and the City shall pay the Commissioner $1 million. He expressed 347 concerns stating that they are being offered $8.6 and the City is paying an additional $1 million 348 to clear the land and get clear title, which is a cost to the City of $9.6 and respectfully submitted 349 that the park dedication fee should be $965,000 and would reflect the total cost of the land to the 350 city and the transfer over, if this project is accepted as presented. 351 352 Mr. McCarty noted that there was information presented from staff outlining several options 353 noting that he would like to address the last option on the $7.2 million the City would end up 354 with in the end. He referenced the ‘as is’ investment option stating that this was not mentioned 355 and noted that if they were to keep the property ‘as is’ for the same term, projecting it on a 3-356 percent per annum gain, based on its current value, the property would be worth $16.5 million. 357 He stated that the Finance department has projected an ending cash balance of $9.6 million for a 358 total of $26 million. He stated that this is a great deal more than the $17 million cited in the 359 document. 360 361 Mr. McCarty referenced the issue of selling the property noting Section 2.02 of the City Charter, 362 Boards and Commission, states that there would be no separate boards of administration powers 363 in the City of Mounds View and the Council would act as such in all cases accepting that they 364 may appoint advisory commissions to perform quasi-judicial functions, which means advisory in 365 total. He stated bottom line the EDA cannot sell this property. He stated that the Council does 366 not have to transfer it under ordinance noting that if they wish to note to the EDA that they want 367 the EDA to negotiation this project they can do that by simple motion. He stated that under 368 Section 12.05, Sales of Real Property, it is stated very clearly that no real property of the city 369 would be disposed of except by ordinance. He stated that it also states that the proceeds of any 370 sale of such property would be used to retire any outstanding debts of the city in the purchase, 371 construction or improvement of this or other property used for the same public purpose. He 372 stated that he would like to respectfully submit that the golf course is a recreation activity of the 373 city and if there are any outstanding debts on any other recreational facilities the residuals or 374 profits on the property must first go to retire these debts. 375 376 Mr. McCarty stated that the EDA resolution recommending that Council sell The Bridges Golf 377 Course to Medtronic prior to finalization of the Comprehensive Plan amendments may be a bit 378 premature. He suggested perusing Minnesota Statute 462, the Comprehensive Planning Act, 379 stating that they would find that the comprehensive plans and their companion documents are 380 one and the same, cohesive and inseparable. He stated that to go forward with the sale of a 381