Minutes - 2005/08/08 - Laserfiche WebLink

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Mounds View City Council August 8, 2005 Regular Meeting Page 5 • Mr. Perrozzi stated that he did ask both Director Ericson and Economic Development Coordinator Backman what direction they wanted to see for this site and he was told retail. He stated that this was the direction he took in remodeling the building but found it is hard for him to do when he has to enter the building on the east side and step down five steps to enter the building. He stated that they kept telling him the grading was fine adding that he caught the problem the day they were digging the footings. Council Member Thomas cautioned the Council and City Staff stating that they have to be careful with the level of their involvement, as to the extent of what the City could do to support the process, when they are not a party to the negotiations. She agreed that there are issues that the Council could help with but there are also issues that the Council can't resolve. She agreed that Council should review and discuss this issue at their first work session in September and then determine what kind of assistance, if any, the Council could provide. Mr. Perrozzi asked who would be responsible for plan review and blueprint acceptance. He asked if it would be the City, Velmeir or Loucks. Mayor Marty stated that Council would review this issue at the next Council work session in September. Duane McCarty, 8060 Long Lake Road, stated that he has some concerns regarding the draft Medtronic contract he requested and received three weeks ago. He stated that the way he sees it, • after reviewing the contract, the way the proposal was presented there was a lot of attention made to the $14.8 million that Medtronic would pay upfront to help enhance the feasibility of the project, but after reading the purchasing agreement he realized that Medtronic would receive repayment of that $14.8 million from the tax increments, which means that Medtronic would get their investment back via a note from the City at 5-percent interest. He stated that he would like to be able to get 37-percent of his property taxes back at 5-percent interest noting that he thought that Medtronic stood a bit higher than that in terms of their commitments. Mr. McCarty stated that there is also an indemnity clause included in the contract that would require the City to indemnify all persons against what the contract identifies as environmentally unsafe situations at the golf course property. He stated that although there is some claim that there would be a $200,000.00 limit on the City, he is not sure how this would work. He asked who would pick up the balance if an injured party were to sue and be granted, in court, an award in excess of $200,000.00. He expressed concerns stating that this issue has not been clearly outlined in the contract. He expressed his doubts that the City and Medtronic would be able to contractually agree that the most they would ever pay out on a claim of harm, under these conditions, would be capped at $200,000.00. Mr. McCarty stated that much of the proposal and presentation revolved around three phases for the Medtronic project. He stated that the purchase contract that is before Council that would run for 25-years, very clearly only touches on or controls Phase 1. He stated that Phase 2 and Phase 3 • were purposely left out so there is no guaranty or warranty that the City would see anything more than Phase 1. He indicated that the contract recognizes this adding that Medtronic has no