02-02-2005 - Laserfiche WebLink

Home Browse Search

Mounds View Planning Commission January 19, 2005 Regular Meeting Page 3 ________________________________________________________________________ of something in the line of a truck terminal, which would be more intensive than an office complex. Chair Stevenson mentioned a 400-500 condominium unit, and they would possibly have to rezone if a big developer wanted to come in. He stated his concern over breaking up the golf course for smaller projects. Director Ericson stated that the City would not be selling the holes one by one, and they are in charge of the property. He stated that the City wouldn’t be breaking up the golf course for a 25,000 square foot office building, for instance. Commissioner Hegland asked if this designation would in any way impact the tax status of the property. Director Ericson stated that it would not; the County will assess the property based on what it is. He stated if Medtronic were to construct a corporate office complex, it would be assessed at a commercial office designation. He stated that it’s a tax exempt property at this point and is not generating any taxes. Chair Stevenson stated that whoever comes in there would be paying taxes after it’s developed, and Director Ericson stated that that was correct. Commissioner Zwirn asked whether Medtronic had asked the City to provide tax incentives. Director Ericson stated that Medtronic will be seeking financial assistance for the project. He stated that there would be a base tax value of the property that would reflect what its current value is. He stated that the value of their development would be captured within a new TIF district. He stated that the City would still derive the benefit of that base, and that could be $9 million. He stated that the base could be negotiated at whatever the County determines the true market value of the land is, so the various taxing jurisdictions would capture the initial base land value of the project with the excess being available for TIF. He stated that depending on what is negotiated, 90 percent of that could be provided back to the developer, with the City retaining 10 percent for its administration costs. He stated that it would be their intent to get the project fully funded and then repaid, and then back on the tax rolls as soon as possible. Director Ericson stated that Mayor Marty indicated that for this to work for the community, it has to make sense today, not 25 years from now, and that the City of Mounds View cannot continue to shoulder the type of tax increases that there have been the past several years. Commissioner Zwirn stated that what he understood Director Ericson was saying was that right now there is a valuation placed on the land, and there is a tax base that is created as a result of that valuation, and that anything that Medtronic would do to improve that is negotiable as far as tax base goes. He asked if they could negotiate something out 10-15 years from now and delay the taxes on that.