Minutes - 2005/08/22 - Laserfiche WebLink

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Mounds View City Council August 22, 2005 Regular Meeting Page 5 • Ken Glidden, 5240 Edgewood Drive, stated he has now heard that "negotiations are completed, the contract is in place, and that is the end of the story." He stated he was not aware that was the case and believes there are other matters before the Council that need to be dealt with before that statement can be made. He stated it was published several times that Medtronic will make a one time donation of $100,000 to School District 621 which has an annual budget of slightly under $100 million a year for 2005 an 2006. Given the estimated property tax of $46,000 a year under TIF, if they paid their normal estimate property tax of $563,000 a year without TIF, the school district would receive roughly $160,000 a year. He asked Medtronic to pay their fair share because the school district would benefit far more than from aone-time contribution of $100,000. Mr. Glidden stated that is just the impact to the school district but there may be additional funds for the City and the Northwest Youth and Family Services. Councilmember Thomas explained that part of the TIF process is that the school district has to approve any new TIF and the school district enthusiastically supported the development, knowing that this and future tax base would not happen without this project. Mr. Glidden asked if they knew the amount of taxes they were giving up. Councilmember Thomas stated they knew the figures and that this would not happen without the project. Mr. Glidden asked what the school district made their decision on to give up roughly $160,000 a year. • Mayor Marty asked City Administrator Ulrich to respond. City Administrator Ulrich explained the school district looked at the increase in the market value for levies placed by the school district. And, even though the project is in a TIF District, it was important to the school district that the increase in the market value levy (for the total value of the project) go on the levy base, which will lower the taxes for everyone within the district. Mayor Marty stated that to his knowledge he, as Mayor and President of the EDA, has not yet signed a contract. City Administrator Ulrich stated the terms of the development agreement have been approved by the Council but is not yet executed. He explained the document is over 100 pages in length and there are "I's to dot, T's to cross," and pages to number Jan Brink, 7800 Gloria Circle, gave her three minutes to Barbara Haake Ms. Haake asked about the interest payment on $.14.8 million and how the interest rate would be paid. She informed the audience that there are a series of questions at the podium that anyone can ask. She suggested that City Attorney Riggs had previously stated that there would be no interest on the $14.8 million but then Medtronic crossed that off the July 8~' contract and put in 5% interest. She asked how the City can not negotiate something less than 5% interest or no interest whatsoever. • Sid Inman, Ehlers & Associates, stated he is not familiar with the contract draft referred to by Ms. Haake that did not have interest. He stated he is also not aware of any type of contract where