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Mounds View Planning Commission February 1, 2006 Regular Meeting Page 11 ________________________________________________________________________ Barbara Haake, 3024 County Road I, stated that she just wanted to point out a few things. She indicated that Medtronic already has $14.8 million in TIF, and this would add $8.1 million more. She stated that she knows the Planning Commission has been told that they are not supposed to consider the money aspect, but there is State statute that says they should consider it. She indicated that Mounds View will be number one in TIF in Ramsey County if this goes through, and will be at about 30%. She stated that other communities have had their entire City Council overturned over much less than that percentage. Community Development Director Ericson stated that it is correct that some of the reimbursement Medtronic would be providing to the city, specifically the dollars for the well and the street reconstruction, are proposed to be paid by TIF. He stated that if the City Council said they did not want to increase those TIF dollars, those costs would have to be paid upfront. Mr. Hockey stated that if Medtronic were going from an 800,000 square foot building to a 1.2 million square foot building, it would increase the assessed valuation. She indicated that if that were not in TIF, the city would be accumulating so much more money that they could pay it off in fifteen years or less. She stated there is also the “but for” test. She indicated that she did not approve of the way that was done last time, and asked if they have provided information on satisfying that test now. Community Development Director Ericson stated they do have information on but for, however he would argue that, but for TIF financing, this project would not go forward. He indicated it is not that Medtronic could not do it without TIF, but because there are hundreds of other communities and countries that would provide it to them. Ms. Hockey asked what the justification was for, but for on Phase II. She stated that Medtronic is not going to go away now. Community Development Director Ericson indicated that the building is not built yet. He stated that he is not suggesting Medtronic would walk away, but they could; they are under no obligation. He indicated they have other properties they could build on. He stated that until he sees a building constructed, he is slightly nervous. Ms. Haake stated that she had thought that Medtronic would only need $2 to $3 million more in TIF, and now it is up to $8.1 million. She indicated that the City Council can do what they want, but she would suggest that the Planning Commission recommend that the city give Medtronic only $2 to $3 million in TIF. She stated she is not against Medtronic, but she wanted a fair deal for Mounds View, and she feels they are not getting one. She indicated they are only getting $43,000 in taxes, yet they have to hire an additional building inspector and the rest of the money will be coming out of her taxes. Community Development Director Ericson indicated that he believes he mentioned the $2 to $2.5 million figure originally in October or November, however that was just a guess. He stated that the only addition in Phase II is the parking ramp, and not knowing how much that would cost, he may have estimated, but it was never meant to be a firm number.