Minutes - 2006/02/13 - Laserfiche WebLink

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Mounds View City Council February 13, 2006 Regular Meeting Page 7 • is not even open yet. He stated Medtronic may want to use the Mounds View Banquet Center, which needs help getting filled. Mr. Hall commented that the issue it is not if Phase 2 will happen, but how big it will be. He referenced Mr. Inman's comment that there will be an extra $30 million in market value with providing the TIF. He stated it will only help the area if Phase 2 is accelerated. He noted Medtronic is paying 37 cents on every dollar in tax, so that means there is 63 cents on every dollar that goes back to the State of Minnesota, Mounds View, Ramsey County or state-wide. He explained the benefit is huge with $3,447,000 per year in non-captured tax revenue. Mr. Hall stated the buildings Medtronic is moving from are still going to be there. He stated that TIF is to keep the economy flourishing and moving. He stated it is likely that a world class company moving into the area will have spin-offs. He stressed that it is already affecting his business and he fully supports Medtronic in Mounds View. Director Ericson pointed out there are some handouts outside the Council chambers that address the tax increment information. David Jahnke, 8428 Eastwood Road, stated that the City is committed to Medtronic. He noted that in Fridley alone, there were 2,000 jobs added in a five-year time frame. He stated that a good business grows, and there are only benefits to be had in the long run for Mounds View. He asked why the City would want to stick Medtronic out four to five years just because they bought • the land. He thanked the Council members that voted for the Medtronic development and what they have done for Mounds View. Mayor Marry stated that the Council is not saying it is not going to negotiate, but it was the intention to negotiate a little harder to keep the extra TIF spent for Phase 2 as low as possible. He explained that the lower the City can keep the TIF, the faster the whole district can be paid off so that it can be on tax roles, which will directly affect every resident and every business owner. Mr. Jahnke stated that he does not like TIF financing, but realizes it is a fact of life. Brian Amundsen, 3048 Wooddale Drive, referenced the benefits summary of Phase 2 on the City's website, and stated he was concerned about the legislation that allowed for increments from the tax district that may be expended on areas located outside of the TIF district for sanitary sewer, sewer and water improvements. He stated this means the existing TIF allows for most of these benefits that are listed as Phase 2 benefits, and negotiations are not required because the benefits are already allowed under legislation. He commented the only thing that would modify legislation is if the benefit was limited in Phase 1. Mr. Amundsen referenced a report by City Administrator Ulrich and noted that billboard acquisition is a TIF eligible cost and may be paid from the increment in addition to billboard relocation, limited to $260,000. He stated it appears that the only summary benefit is the . $355,000 that Medtronic is going to make available to be used anywhere in the City.