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<br />Medtronic Phase 2 Report <br />December 12, 2005 <br />Page 2 <br /> <br />In our opinion and in the opinion of our financial advisor, there is no discernible downside. No <br />additional funds will be expended that will not be reimbursed. No taxes will be lost, no <br />revenues diverted, no additional infrastructure is needed. In fact, the City would gain an <br />anticipated additional 50% in both TIF admin fees and franchise fees above and beyond <br />Phase 1 projections. Mounds View residents and taxpayers will also benefit in that the <br />Medtronic project would shoulder an even greater share of any market based bond <br />referendums or levies (residents approved one for ISD 621 a couple years ago) so all things <br />being equal, taxpayers would pay even less than they otherwise would have. In addition to <br />the potential $2,570,000 in savings the City would immediately realize, instead of a $65 <br />million project coming online in 2033 to significantly boost general fund revenues or <br />significantly reduce taxes, the City will have a $96 million project coming online in 2033 to <br />even more significantly boost general fund revs or more significantly reduce taxes. <br /> <br /> <br />Recommendation: <br /> <br />Based on the above analysis which is supported by documentation prepared by Ehlers and <br />Associates, Staff and your financial advisors support moving forward with a negotiation with <br />Medtronic based on the above terms and conditions. If the EDA supports the possibility of a <br />modification to accommodate Phase 2 construction concurrent with Phase 1, staff <br />recommends adopting the attached resolution which simply requests the City Council to <br />establish a public hearing to consider such a possibility. (The City Council would need to <br />adopt a similar resolution at their meeting.) Because we are planning on canceling the Dec <br />27, 2005 EDA and Council meeting, the EDA should call for the hearing now to allow for a <br />hearing to be conducted in February. Accordingly, Resolution 05-EDA-211 has been drafted <br />for your consideration. <br /> <br />If you should have any questions, please do not hesitate to contact me at 763-717-4021, Kurt <br />Ulrich at 763-717-4001 or Aaron Backman at 763-717-4029. <br /> <br />Respectfully submitted, <br /> <br /> <br /> <br />________________________ <br />James Ericson <br />Community Development Director <br /> <br />Attachments: <br />1. Medtronic Letter, dated <br />2. Modification Schedule <br />3. Financial Analysis <br />4. Resolution 05-EDA-211 <br />