Minutes - 2006/02/13 - Laserfiche WebLink

Home Browse Search

Mounds View City Council February 13, 2006 Regular Meeting Page 9 • the property back on the tax rolls so it will affect every citizen in Mounds View as quickly as possible. He explained that it is an economic development district that is capped at eight years, and it will be a total of nine or ten years before it gets on the tax rolls. Mayor Marry stated the City went to the Capitol to obtain legislation to extend the district an additional 17 years. He stated that a downfall to this issue is that citizens will be locked into tax servitude unti12033 or until the district is paid off. He stated he hoped the district would be paid off sooner if the TIF was limited on Phase 2. He stated he felt with Phase 1 that the negotiations were done as a part of the sale of property. He stated with Phase 2, Medtronic is already here so the City had more leverage to keep the amount of TIF and interest as low as possible to get it back on tax rolls. He stated once the TIF district expires, not only will the City of Mounds View get in excess of $500,000 per year, but the school district will also reap countless benefits. He stated this will also affect everyone in Ramsey County with the tax dollars it will receive. He stressed that he wanted to try to get Medtronic on the tax rolls and off the TIF rolls as quickly as possible. Mayor Marty reviewed that Phase 1 capped Medtronic TIF of $14.8 million and additional interest to be paid of $16.9 million to total $31.7 million. He reviewed that Phase 2 had an additional $8.1 million of TIF so it jumps from $14.8 to $22.9 million, and there will be additional interest of $21.3 million to total of $44.2 million. Mayor Marty. stated the City could be capturing a portion of the money here instead of assisting • Medtronic. He stated Medtronic is financially sound and they would likely go ahead and build the first class facility even without TIF assistance. He stated he does not think this would have been a major deterrent for Medtronic, and that he would have liked to negotiate some more on this. He mentioned that if they decreased the additional TIF from $8.1 million to $4 million, the sum total of the TIF note principal would have been $18.8 million to be paid off in 2028 at $80 per square foot per the minimum assessment agreement. He stated if the assessment agreement comes in at $100 per square foot from Ramsey County, then at $4 million in additional TIF for Phase 2, it would be paid off in 15.5 years. He stated the interest and funds from the special fund levy reduction fund from the sale of the land has resulted in no increase in property taxes. He stated that once Medtronic is actually on the tax rolls, the City could possibly lower property taxes. Councilmember Thomas stated the Council has gone back and forth on these terms and pointed out that there have been extensive negotiations and discussion. Mayor Marty agreed that there have been negotiations and discussions about this, but wanted to stress that the City should have held on a little tighter to see what could have been done. Councilmember Flaherty stated it cannot be assumed there will be someone sitting in the wings to put in another $96 million project. He stressed to remember where the City was at with the golf course that was costing the taxpayers money. He pointed out that the City passed the $0 • levy parcel because of Medtronic.