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HomeMy WebLinkAbout01-23-2006 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA NEW BRIGHTON CITY HALL Monday, January 23, 2006 6:30 PM 1. CALL TO ORDER 2. ROLL CALL: President Marty, Vice President Stigney, Commissioner Flaherty, Commissioner Gunn, Commissioner Thomas 3. APPROVAL OF AGENDA 4. PUBLIC INPUT: Citizens may speak to issues not on tonight’s agenda. Before speaking, please give your full name and address for the minutes. Also, please limit your comments to three minutes. 5. APPROVAL OF MINUTES: A. EDA Minutes January 9, 2006. 6. CONSENT AGENDA 7. EDA BUSINESS A. Resolution 06-EDA-214 Authorizing Payment of Pay-As-You-Go Developer Payments to Red Cent Management, L.L.C; Heartland-Mounds View Common Bond; and Bridges Leasing Company. B. Informational Meeting regarding Phase Two Acceleration of the Medtronic Campus; and Presentation and Discussion of the Medtronic Development Proposal and Terms of the Amended Contract for Private Development. 8. REPORTS 9. NEXT EDA MEETING: Monday, February 13, 2006 @ 630pm 10. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 January 9, 2006 6 New Brighton City Hall 7 803 Old Highway 8, New Brighton, MN 55112 8 6:35 P.M. 9 10 11 1. CALL MEETING TO ORDER 12 13 2. ROLL CALL: President Marty, Vice-President Stigney, Commissioner Gunn and 14 Commissioner Flaherty. 15 16 NOT PRESENT: Commissioner Thomas. 17 18 3. APPROVAL OF AGENDA 19 20 MOTION/SECOND: Flaherty/Gunn. To Approve the January 9, 2006 Agenda as presented. 21 22 Ayes – 4 Nays – 0 Motion carried. 23 24 4. PUBLIC INPUT 25 26 None. 27 28 5. APPROVAL OF MINUTES 29 30 MOTION/SECOND: Gunn/Marty. To Approve the December 12, 2005 Minutes as corrected. 31 32 Ayes – 4 Nays – 0 Motion carried. 33 34 6. CONSENT AGENDA 35 36 A. Resolution 06-EDA-213 Re-appointing Dr. Greg Belting and Jackie 37 Entsminger to the Economic Development Commission 38 39 MOTION/SECOND: Gunn/Stigney. To Approve the Consent Agenda, as presented. 40 41 Ayes – 4 Nays – 0 Motion carried. 42 43 President Marty thanked Dr. Belting and Ms. Entsminger for reapplying and their continued work 44 on behalf of Mounds View. 45 Mounds View EDA January 9, 2006 Regular Meeting Page 2 46 7. EDA BUSINESS 47 48 None. 49 50 8. REPORTS 51 52 A. Report regarding Phase Two Acceleration of the Medtronic CRM Campus; 53 and Discussion of the Medtronic Development Proposal and Terms of the 54 Amended Contract for Private Development 55 56 Economic Development Coordinator Backman reviewed that the sale of The Bridges was 57 completed on October of 2005 and on November 14, 2005 the Council approved the Medtronic 58 Cardiac Rhythm Management (CRM) Campus final plat, the rezoning to Office PUD, and called 59 for the redemption of all outstanding golf course revenue bonds. During November, Medtronic 60 notified staff that they were interested in discussing the potential to accelerate Phase 2 61 construction of the CRM headquarters. On November 28, 2005 the Council directed staff to 62 proceed with discussions with Medtronic regarding the potential acceleration for Phase 2 63 construction of the campus. On December 12, 2005 the Council approved setting a public 64 hearing for February 13, 2006 to discuss modifications of the TIF plan and the business subsidy 65 necessary for acceleration of Phase 2 to be concurrent with Phase 1. 66 67 Economic Development Coordinator Backman advised that through various discussions and 68 meetings, the terms of an amended contract are being developed for the EDA’s consideration. 69 By combining Phases 1 and 2, the initial phase of the project would be significantly increased. 70 The number of employees would be increased from approximately 3,000 to over 4,300. The 71 building complex would be increased from 820,000 square feet to 1.2 million square feet for an 72 increase of about 46%, and the minimum assessment agreement would increase accordingly. It is 73 projected that 60% of the construction will be completed a year from today and 100% in two 74 years. 75 76 Economic Development Coordinator Backman reported that Medtronic has requested 95% of the 77 available tax increment, the same percentage as in the current agreement. Medtronic would 78 continue to finance their development costs up front and would receive tax increment on a pay-79 as-you -go basis at the same interest rate. Under the amended contract, fiscal disparities would be 80 paid inside the district, or B election. He advised that Ehlers & Associates, the City’s TIF 81 financial advisors, are carefully reviewing all qualified costs in a manner consistent with the 82 original agreement. Also, the length of the TIF district would remain the same at 25 years. The 83 largest single difference with a combined project would be the amount of costs allocated to 84 structured parking in Mounds View. 85 86 Economic Development Coordinator Backman explained that in return for TIF assistance, 87 Mounds View EDA January 9, 2006 Regular Meeting Page 3 Medtronic would reimburse the City for administrative costs associated with the amended 88 agreements. Medtronic would be responsible to construct water and sewer utilities to the site that 89 was previously the City’s responsibility. Medtronic would pay 100% of the cost to relocate all 90 four billboards, including the previously agreed City’s portion. If the buyout alternative has to be 91 undertaken for the billboards, Medtronic would pay all costs associated with the four signs. 92 Medtronic would consider financially participating in providing additional infrastructure for the 93 City. Economic Development Coordinator Backman stated that examples include construction 94 of a portion of a sound wall along Highway 10 by the Laport Meadows residential area, 95 replacement of Well #4, or utility costs that exceed the $400,000 estimate. If trail costs on the 96 former Sysco property are deemed excessive by the City, Mounds View would not be required to 97 construct the trail and the designated funds would remain for other park uses. If Medtronic wants 98 the trail constructed, Medtronic would pay for the trail costs in excess of $150,000 allocated from 99 the park dedication fee. The City would pay the $150,000 and Medtronic would pay the sum 100 above that. 101 102 Economic Development Coordinator Backman emphasized that these items are not final 103 accepted terms from either Medtronic or the City. They represent the best information that staff 104 has at the present time. Staff is looking for guidance regarding the Phase 2 acceleration of the 105 Medtronic CRM Campus. He advised that Ehlers is preparing additional financial analysis that 106 will be presented at future EDA meetings. If the proposed terms meet the expectations of the 107 EDA, and are approved by Medtronic, the next step would be to incorporate the new terms into 108 an amended development agreement. 109 110 Commissioner Flaherty asked if Medtronic would be willing to help with the City in starting the 111 street projects. Economic Development Coordinator Backman stated the negotiating team of 112 Ehlers and Medtronic representatives are reviewing issues and the EDA can certainly make 113 suggestions as to what they feel are important items that should be looked at. He stated it is his 114 sense that if the item is considered, there should be some connection with the Medtronic campus 115 project. The tie-in with Well #4 is that the City needs to assure an adequate water supply. The 116 City has that in Phase 1 but adding a larger project by accelerating Phase 2 moves up the 117 timetable for consideration of Well #4. That is the suggestion of Public Works Director Lee 118 because it is something the City needs to consider. Economic Development Coordinator 119 Backman explained that with the sound wall, the tie-in to Medtronic is consideration of the 120 additional traffic to Highway 10 and County Road J. 121 122 City Administrator Ulrich stated that can be considered for negotiation but there is a limited 123 number of dollars. The City is currently in a negotiation phase with Medtronic and staff would 124 like EDA direction on the most important points to consider. 125 126 City Administrator Ulrich explained that Medtronic did not feel the noise wall had enough 127 community benefit so maybe they would consider putting money into the road fund, as they are 128 doing with Well #4. 129 Mounds View EDA January 9, 2006 Regular Meeting Page 4 130 Commissioner Flaherty stated he wanted to raise the issue of streets since another tie-in is the 131 quality of life for future Medtronic employees and residents. He stated he is not implying that 132 would be a number one or two priority, but he believes it should be discussed. 133 134 President Marty stated his support since the Medtronic campus will result in an increase in 135 traffic. He stated he was somewhat encouraged when he learned of the negotiations and thanked 136 Public Works Director Lee for raising the issue of Well #4. He noted that if the City had to 137 construct a well, it would cost millions of dollars and this will assure an adequate water supply. 138 139 President Marty reviewed that several years ago, during a drought when everyone was watering 140 their lawns, Wells #1, #2, and #3 were pumping almost non-stop during the day and had to refill 141 during the night. He explained that putting Well #4 on line was previously a concern to him due 142 to an issue of contaminants. Several years ago, the Council had considered blending that well 143 with other water but rather than providing “adequate” water, he would like to provide “good” 144 water to Mounds View residents. He noted that the Medtronic water requirements will be greater 145 so he considers it a “carrot” if Medtronic is willing to come on board with that. 146 147 Vice President Stigney asked if there will be park dedication fees with Phase 2. Economic 148 Development Coordinator Backman stated there will not be since Phase 2 is not associated with a 149 land sale or transfer. 150 151 Vice President Stigney asked about the cap. 152 153 Shelly Eldridge, Ehlers & Associates, advised there is a total of $22.9 million of present value at 154 5%. She stated some of the costs could be funded outside of TIF if Medtronic is willing to do so. 155 Ms. Eldridge stated they are waiting for the feasibility study to get a better number to work with. 156 157 City Administrator Ulrich advised that a feasibility study is also being conducted on the 158 underground utilities. 159 160 Economic Development Coordinator Backman recapped that the EDA considers Well #4 to be a 161 higher priority than the sound wall. He asked which road projects the EDA has in mind. 162 163 Commissioner Flaherty stated he wanted road projects raised as a discussion item and he would 164 be suggesting a contribution to the general street fund. 165 166 Commissioner Gunn stated she supports consideration of roads in the northern area of Mounds 167 View because Medtronic traffic will be coming on Highway 10 and using Red Oak Drive or 168 Long Lake Road and County Road J. 169 170 Economic Development Coordinator Backman asked the EDA if the street fund is a higher 171 Mounds View EDA January 9, 2006 Regular Meeting Page 5 priority than Well #4. 172 173 President Marty and Commissioner Gunn felt that Well #4 was the higher priority. 174 175 Consensus was reached on the following list of priorities: 176 177 1. Well #4 178 2. Street Fund 179 3. Sound Wall 180 4. Other Infrastructure 181 182 President Marty pointed out that if street projects are started, the sound wall can be started with 183 spoils from the street projects. He stated he has also heard that Mn/DOT may be adding another 184 lane to Highway 10 but, in the meantime, the City could start working towards a City berm. 185 186 Vice President Stigney stated if employees are added to Medtronic, it will increase traffic and 187 suggested the option of an additional ramp be discussed with Medtronic. Economic 188 Development Coordinator Backman explained that the traffic study did address the County Road 189 J and airport area with regard to turn lanes. He explained that cars coming off Highway 10, use 190 the turn lane onto County Road J. The study indicated that is a higher impact than traffic coming 191 from Long Lake Road and turning onto County Road J. 192 193 Vice President Stigney stated that may be the model for the traffic study but he would like that 194 issue raised with Medtronic. 195 196 Economic Development Coordinator Backman advised that the cost estimates for the water and 197 sewer extension will be received shortly and can be addressed at the January 23, 2006 EDA 198 meeting. He asked about the priority of the trail or other terms. 199 200 Vice President Stigney questioned a statement in the staff report indicating: “If Medtronic wants 201 the trail constructed, Medtronic would pay for the trail costs in excess of $150,000 allocated from 202 the Park Dedication Fee. The City would pay the $150,000 and Medtronic would pay the sum 203 above that.” He asked if Medtronic would just pull the funds from the park dedication fee that 204 they have contributed. Economic Development Coordinator Backman stated that is correct and if 205 the cost is in excess of $150,000, Medtronic would pay the difference. 206 207 9. NEXT EDA MEETING: Monday, January 23, 2006 at 6:30 p.m. 208 209 10. ADJOURNMENT 210 211 President Marty adjourned the meeting at 6:57 p.m. 212 213 Mounds View EDA January 9, 2006 Regular Meeting Page 6 Respectfully submitted, 214 215 216 Recorded and transcribed by: 217 218 Carla Wirth 219 TimeSaver Off Site Secretarial, Inc. 220 221