Minutes - 2005/08/22 - Laserfiche WebLink

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Mounds View City Council August 22, 2005 Regular Meeting Page 25 . Resolution Approving the Removal of Certain Parcels from the EDA's Tag Increment Financing District No. 3 and Resolution 6594B Approving the Tag Increment Financing Plan Establishing Tag Increment Finance (TIF) District No. 5, aSpecial-Legislation Economic Development District, within the Redevelopment Project Area Mayor Marty opened the Public Hearing at 11:10 p.m. Economic Development Coordinator Backman reviewed that on June 27, 2005, the Mounds View EDA and City Council adopted resolutions approving the sale of land comprising the Bridges of Mounds View Golf Course. They also approved the Medtronic Development proposal. In order to facilitate this development, the City sought passage of special TIF legislation during the 2005 legislative session. The Minnesota Legislature approved the Public Finance Bill which included the City's legislation that allows it to create a 25 year Economic Development TIF District. The Boards for Ramsey County and the Mounds View School District approved the legislation on June 28, 2005. Economic Development Coordinator Backman explained that the proposed District encompasses five parcels of the golf course and former SYSCO site and adjacent rights-of--way. Three parcels will be removed from TIF District #3 to be included in the new district. Economic Development Coordinator Backman further explained the former SYSCO land • encompasses 46 acres and would remain with the City of Mounds View. It is proposed to be part of the new district minus the 3 acres being deeded by the City back to SYSCO Minnesota. The new District is being created to facilitate the development of Phase 1 for Medtronic business campus. The development agreement has been authorized contingent upon the TIF Plan and is likely to begin in the fall of 2005. Economic Development Coordinator Backman stated the EDA and Council have determined that it will be necessary to provide assistance to the project for certain TIF qualified costs projects. Staff recommends the Council adopt Resolution 6594A, approving the decertification of parcels from TIF District No. 3 in order to include them in the newly created TIF District No. 5, and Resolution 5494B, approving the TIF plan. He noted that at the EDA meeting, parcel #0004 was not decertified so only two parcels would be decertified and put into District #5. Brian Amundsen, 3048 Woodale Drive, stated he understood it was pay-as-you-go and asked if Medtronic makes the $14.8 million payment up front and then draws from it. Director Ericson explained Medtronic is making a $100 million investment in the community and up-fronting their development costs. There are approximately $25 million of TIF eligible expenses with this project and there is a development agreement to provide $14.8 million in assistance, representing they will have well in excess of $10 million beyond what is being provided in assistance. Mr. Amundsen asked if the $14.8 million is being provided from Medtronic. Director Ericson • explained that the $14.8 million provided to Medtronic is coming from the money they pay in property taxes.