EDA Resolution 06-EDA-212 - No Record of Approval

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Mounds View EDA Regular Meeting January 9, 2006 Page 2 7. None. 8. EDA BUSINESS REPORTS Talked about information that would be been contained in 06-EDA-212 but appears a resolution was never approved. A.Report regarding Phase Two Acceleration of the Medtronic CRM Campus; and Discussion of the Medtronic Development Proposal and Terms of the Amended Contract for Private Development Economic Development Coordinator Backman reviewed that the sale of The Bridges was completed on October of 2005 and on November 14, 2005 the Council approved the Medtronic Cardiac Rhythm Management (CRM) Campus final plat, the rezoning to Office PUD, and called for the redemption of all outstanding golf course revenue bonds. During November, Medtronic notified staff that they were interested in discussing the potential to accelerate Phase 2 construction of the CRM headquarters. On November 28, 2005 the Council directed staff to proceed with discussions with Medtronic regarding the potential acceleration for Phase 2 construction of the campus. On December 12, 2005 the Council approved setting a public hearing for February 13, 2006 to discuss modifications of the TIF plan and the business subsidy necessary for acceleration of Phase 2 to be concurrent with Phase 1. Economic Development Coordinator Backman advised that through various discussions and meetings, the terms of an amended contract are being developed for the EDA's consideration. By combining Phases 1 and 2, the initial phase of the project would be significantly increased. The number of employees would be increased from approximately 3,000 to over 4,300. The building complex would be increased from 820,000 square feet to 1.2 million square feet for an increase of about 46%, and the minimum assessment agreement would increase accordingly. It is projected that 60% of the construction will be completed a year from today and 100% in two years. Economic Development Coordinator Backman reported that Medtronic has requested 95% of the available tax increment, the same percentage as in the current agreement. Medtronic would continue to finance their development costs up front and would receive tax increment on a pay as-you-go basis at the same interest rate. Under the amended contract, fiscal disparities would be paid inside the district, or B election. He advised that Ehlers & Associates, the City's TIF financial advisors, are carefully reviewing all qualified costs in a manner consistent with the original agreement. Also, the length of the TIF district would remain the same at 25 years. The largest single difference with a combined project would be the amount of costs allocated to structured parking in Mounds View. Economic Development Coordinator Backman explained that m return for TIF assistance,