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Mounds View City Council February Z3, 2006 <br />Regular Meeting Page 6 <br />• rather that Medtronic would have to fill out the application. She asked if Medtronic could <br />respond or present a written list of the But-For statements. <br />Mayor Marty stated he asked at the EDA meeting for a copy of the TIF application that would <br />include the But-For statements. He mentioned TIF applications were submitted to the Council in <br />other development proposals, but with Medtronic Phase 1 development, he did not see or receive <br />the TIF application although it was discussed. <br />Councilmember Gunn stated on Appendix F in the Council packet includes But-For statements. <br />Councilmember Flaherty reviewed Appendix F and stated the current market value of Phase 1 is <br />$9.1 and the new market value with Phase 2 is $96 million. He stated the market value likely to <br />occur without TIF is $62.6 million, so the But-For is $34 million. <br />Mr. Inman stated the only statutory But-For requirement is to attempt to see whether value is <br />created over and above the tax increment. He stated this requirement has been met. <br />Mayor Marty referenced Appendix F regarding the $20 million bonding received from the State, <br />which covers the transportation improvements for the development. <br />Stan Meyer, 2812 Sherwood Road, stated he requested the percentage of ability to tax for <br />Medtronic with and without Phase 1 and Phase 2, and recalled it is going up to 23%. He <br />commented the City has been fiscally irresponsible regarding this project. He stated he sees no <br />downside to wait on Phase 2 because Medtronic is not going anywhere because they already have <br />so much invested into the development. Mr. Meyer stated the City should wait and see where the <br />money will .come from. <br />Mr. Meyer commented it sounds like the City is too much in love with the deal and afraid to let it <br />go, which results in bad bargaining and a weak position. He noted the City is in a much stronger <br />position, so the City should wait to see how much it will cost, because Medtronic is not going <br />anywhere. He stated Medtronic is counting on the current Council because Medtronic does not <br />know about the Council for the following years. He stated the Council is in a good bargaining <br />position, and it does not have to give up $8.5 million because Medtronic is going to expand the <br />development anyway. <br />Mr. Meyer stated the Council needs to wait and have things settle before passing bonding or TIF <br />district. He thought the purpose of TIF districts is to help small businesses to come into the <br />community to hire people from the community. He stated there will not be any benefits to <br />existing businesses because there are no businesses close to the project. Mr. Meyer stated the <br />Council should be more responsible and the decision should be delayed and bargained for harder. <br />Mayor Marry agreed that the City has a stronger bargaining capability since Medtronic already <br />owns the property. <br />• Dan Hall, 2200 Highway 10, stated he has already seen an increase in his business and Medtronic <br />