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Mounds View EDA June 27, 2005 Regular Meeting Page 2 (AUAR), a boundary and topographic survey and pursuing a Comprehensive Plan amendment. 46 He stated that at the end of December 2004 Medtronic presented City Council with a preliminary 47 term sheet concerning the acquisition and redevelopment of The Bridges. He stated that as a 48 result of City Council’s consideration of the offer Council directed Staff to continue to proceed 49 with negotiations with Medtronic and to pursue a course of action consistent with potentially 50 selling The Bridges for redevelopment. 51 52 Mr. Backman explained that the term sheet indicated that the Mounds View EDA would seek 53 special TIF legislation that would permit a 25-year TIF Districts. He further explained that the 54 term sheet indicated that the City would contact Clear Channel to arrange for the removal of the 55 billboards noting that two of the five Executive Session held by the EDA were to discuss 56 negotiations with Clear Channel. He stated that they came to agreement with Clear Channel by 57 mid-June. 58 59 Mr. Backman stated that the development proposal, including the terms, the purchase agreement 60 and contract for private development, are included in the packet for their review adding that this 61 document was provided to the attendees at the public hearing held last Monday, June 20, 2005. 62 He explained that under the proposed agreement Medtronic is paying $8.65 million to acquire the 63 property from the City and contributing $1 million to the State Highway Fund for the reverter 64 clause federal interest. He stated that the company would also pay the City $865,000 in park 65 dedication fees, $670,000 for compensation pertaining to the billboard signs, to cover the city 66 administration costs and the customary permit construction fees. He stated that the City expects 67 to net over $5 million from the sale at closing and after the golf course debt is paid off. He stated 68 that Ehlers and Associates, the City’s TIF financial advisor, has done a comparison of the ‘as is’ 69 model with the Medtronic model noting that they have projected that the fund balance, as of 70 December 31, 2033, would be approximately $7.5 million for the ‘as is’ model and $19.4 million 71 for the Medtronic model. He noted that a graph is included with the report adding that when the 72 models are graphed it is clear that the City is better off financially every year after the course is 73 sold to Medtronic for the life of the proposed TIF District. He stated that the economic impacts 74 of the project are profound for both the City and surrounding areas. He explained that it would 75 increase the city’s tax base by 8-percent in Phase 1 and would leverage $20.5 million in State 76 funds to reconstruct and upgrade area roads, which are used by both area residents and 77 businesses. He stated that the city would benefit from having a premier company that is willing 78 to spend well over $100 million in private investments in this City and garners a business partner 79 interested in the community’s future including its’ schools. 80 81 Mr. Backman indicated that there are other alternatives available noting that each of those 82 alternatives have a greater level of risk than the current proposal adding that the long-term tax-83 base impact would also be less. He stated that given the positive impacts of this proposal it is 84 recommended that the Mounds View Economic Development Authority adopt Resolution 05-85 EDA-203. 86 87