Loading...
HomeMy WebLinkAbout05-23-2005 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA Monday, May 23, 2005 6:00 PM (Revised as of 3pm on Monday, May 23, 2005) 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. May 9, 2005 EDA Minutes 6. CONSENT AGENDA A. Set a Special Meeting of the EDA for June 20, 2005 at 6:00 pm at the Mounds View Community Center, 5394 Edgewood Drive. B. Schedule an Executive Session immediately following this Meeting to discuss and consider the sale of real property commonly known as The Bridges Golf Course, and a buyout offer of the billboard signs. 7. EDA BUSINESS A. 6:05 PM Continuation of the May 9, 2005 Public Hearing to for the Purpose of Considering the Proposed Sale of land comprising the Bridges Of Mounds View Golf Course to Medtronic 8. REPORTS 9. NEXT EDA MEETING: Monday, June 13, 2005 @630pm 10. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 May 9, 2005 6 Mounds View City Hall 7 2401 Highway 10, Mounds View, MN 55112 8 6:00 P.M. 9 10 11 1. CALL MEETING TO ORDER 12 13 2. ROLL CALL: Gunn, Flaherty, Marty, Stigney and Thomas 14 15 NOT PRESENT: 16 17 3. APPROVAL OF AGENDA 18 19 MOTION/SECOND: Flaherty/Stigney. To Approve the May 9, 2005 Agenda as presented. 20 21 Ayes – 4 Nays – 0 Motion carried. 22 23 4. PUBLIC INPUT 24 25 NONE 26 27 5. APPROVAL OF MINUTES. 28 29 A. EDA Minutes April 25, 2005 30 31 Commissioner Thomas had the following correction: 32 • Page one, Item 4-Public Input; Dwayne McCarty should be Duane McCarty. 33 34 City Administrator Ulrich had the following corrections: 35 • Page 3, line 101, reads ‘the prior year was $7.5 million’; should read ‘the prior year was 36 $1.58 million’. 37 • Page 3, line 107/108 reads ‘tax increment would be subjected to a tax.’; should read ‘tax 38 increment would be subjected to a cap.’ 39 • Page 3, line 111, ranked 1st 40 • Line 114, 115, 116: 41 • Reads: ‘He indicated that Legislation has a proposal that would expand the districts to four or 42 five for the construction of Phase 1 of the Medtronic project.’ 43 • Should read: ‘He indicated that the Legislation proposes to expand the district up to four 44 districts to accommodate the subsequent phases of Medtronic’. 45 Mounds View EDA May 9, 2005 Regular Meeting Page 2 • Line 116: clarified that the 40-acres was previously deeded to the City not 72. 46 • Line 124: 47 • Answer should read: City Administrator Ulrich confirmed stating that it is possible to 48 develop this site without tax increment. 49 • Page 4, line 145: 50 • Reads: ‘City Clerk/Administrator Ulrich stated that the City has spent $21,000.’ 51 • Should read: ‘City Administrator Ulrich stated that the City has spent $221,000.’ 52 • Page 4, line 151-152: 53 • Reads: ‘He noted that of the 72 acres from MnDOT, 40 acres is currently transferable and 54 they have title for the land.’ 55 • Should read: ‘He noted that of the 72 acres, 32 acres is currently transferable and they have 56 the title for the land.’ 57 58 Commissioner Stigney had the following correction: 59 • Page 7, Duane McCarty’s address should be 8060 Long Lake Road not 61 Lake Road. 60 • Page 9, John McKusick’s address should be 8465 Eastwood Road not 8465 East River Road. 61 • Page 11, George Lambrigay’s address is missing a number, show’s 811 Eastwood Road. 62 63 President Marty had the following corrections: 64 • Page 10, noted the name of a speaker was not determined. He suggested reviewing the 65 meeting tape to determine the name of the speaker. 66 • Page 12, line 409, Add ‘comment from the audience’ 67 68 Commissioner Gunn had the following correction: 69 • Page 8, line 334 70 Reads: ‘Katie Timmer stated that she The Bridges is a huge part of her life’ 71 Should read: ‘Katie Timmers stated that The Bridges is a huge part of her life’ 72 73 MOTION/SECOND: Thomas/Flaherty Approve the Minutes of April 25, 2005 as amended. 74 75 Ayes – 4 Nays – 0 Abstain – 1 (Stigney) Motion carried. 76 77 6. CONSENT AGENDA 78 79 NONE 80 81 7. EDA BUSINESS 82 83 A. 6:05 pm. Continuation of the April 25, 2005 Public Hearing for the purpose 84 of considering the proposed sale of land comprising The Bridges in the City 85 of Mounds View to Medtronic, Inc. 86 87 Mounds View EDA May 9, 2005 Regular Meeting Page 3 City Administrator Ulrich stated that Steve Mahle and Rodger McCombss, representatives from 88 Medtronic, are present this evening to provide the Commission and the Residents of Mounds 89 View with a presentation. He stated that due to time constraints the discussion on tax increment 90 financing would be discussed at a future meeting. 91 92 Steve Mahle, Executive Vice President, Medtronic, President of Cardiac Management Division, 93 stated that he has been employed with Medtronic for the past 33 years. He provided the 94 Commission with an overview and history of Medtronic and the cardiac management business. 95 He explained what it means to Medtronic to be a good neighbor and provided an overview of 96 Medtronic’s mission statement. He stated that the Cardiac Rhythm Management is the largest 97 part of the company and is the best known due to its’ history with pacemakers. He 98 acknowledged the question regarding their need for expansion stating that they believe, in spite 99 of the technological advances over the years, that there are still an enormous number of patients 100 to be treated, which means they need more people, which requires more space. He reviewed the 101 Company growth rate noting that Medtronic has been deeply rooted in the northern suburbs for a 102 long time and would like to remain here. He stated that Medtronic has approximately 1,755 103 employees currently living in the northern suburbs with an overall 25-percent from the Mounds 104 View area. 105 106 Mr. Mahle stated that Medtronic currently operates a distribution center in the City and their plan 107 is to build one of the largest facilities Medtronic has anywhere in world. He stated that the 60-108 acre site would fit their needs noting that Mounds View is centrally located with access points 109 from both 35W and Highway 10. He stated that this is the area want to stay in and plan to grow 110 in. He noted the discussions around Mounds View and the community’s assets stating that it is 111 their hope that Medtronic would be considered a community asset. He stated that upfront the 112 City would get $8.65 million for the land sale with $250 million of investment activity in 113 construction and capital purchases, with $79 million projected in property taxes over the next 25-114 years. He acknowledged the reality of TIF stating that they would receive .34 cents spent on the 115 dollar and the City would receive .66 cents. He assured the Commission of Medtronic’s 116 commitment to the community noting that they are more than a community property tax resource. 117 He reviewed Medtronic’s mission statement, written by Earl Bakken, stating that they have a 118 responsibility to be faithful to the communities that they live in. He stated that he is very proud 119 of the community work Medtronic does noting that Medtronic has been blessed to be successful 120 in their business and in turn Medtronic likes to share their success with the community. 121 122 Mr. Mahle stated that in the coming year Medtronic’s total giving would be approximately $45 123 million through the donations of life saving products and through cash donations for various 124 grants. He indicated that Medtronic has been voted one of the top donors in the country noting 125 that in Minnesota Medtronic’s investments include $1 million a year for hands-on science 126 education and $1.5 million a year for health care services, and $4 million to the Greater Twin 127 Cities United Way. He stated that Medtronic also donates to the Minnesota Zoo and the 128 Minnesota Orchestra. He stated that over the past twelve years Medtronic has invested $105,000 129 Mounds View EDA May 9, 2005 Regular Meeting Page 4 in Mounds View school programs in addition to $600,000 committed for park and recreation 130 dedication fees. He stated that Medtronic’s Community involvement does not end with 131 contributions noting that Medtronic employees also volunteer in various schools and mentoring 132 programs. He acknowledged that none of these decisions are easy adding that he understands the 133 passion and concern of the residents and their want to see their Community be successful. He 134 referenced the passion of the people who work for Medtronic and the community they live in 135 stating that it is a real blessing and it is his hope that Medtronic becomes a good neighbor in the 136 City of Mounds View. 137 138 Rodger McCombss, Vice President, Medtronic, stated that his organization includes real estate, 139 construction, facility mgmt, security and travel support noting that all of it comes to bear, in 140 some way, to this project. He reviewed the financial elements of the project and the site plan 141 with the Commission. He stated that they have worked closely with State, County and City 142 officials to ensure that the site is positively developed. He stated that one item of concern that 143 was brought up during a past public hearing was the concern regarding the wetlands. He assured 144 the Commission that Medtronic views the wetlands area as an amenity noting that they have 145 included wetlands as a natural amenity at other facilities as a buffer. He stated that Medtronic 146 wants to ensure that the campus is a positive environment for both the employees and the 147 residents of Mounds View. 148 149 Mr. McCombs stated that the property to the west could be developed with park dedications fees 150 adding that they could incorporate walking trails and park areas throughout. He acknowledged 151 that the development would create an increase in traffic flow stating that they have worked 152 closely with MnDOT, Ramsey County, Anoka County, Hennepin County, Shoreview and Blaine 153 to address the traffic concerns. He reviewed traffic access points and flow with the Commission 154 noting that this was a project that MnDOT originally was not going to address for another ten 155 years. He stated that Medtronic endorses the plans to upgrade 35W/County Road J bridge 156 intersection; the County Road J traffic turn lanes, Airport Road and State Highway 10 noting that 157 the projects are fully funded at the State level. He explained that Real Estate and Construction is 158 part of his responsibility noting that the expansion would add 300 jobs over the next two years. 159 He stated that the new campus would generate the need for jobs to operate and provide services 160 at the new campus in addition to the positive impact it would have for local and regional 161 businesses. 162 163 Mr. McCombs stated that Medtronic deals with the tax issues noting that the TIF calculation that 164 was used for the Fridley Headquarters, was for $100.00 per square foot. He explained that 165 Medtronic reached an agreement with the City of Fridley to engage a third-party mediator to 166 come to an agreement for $109 per square foot as an appropriate charge. He explained that 167 Medtronic pays taxes in Anoka County, Ramsey County and Hennepin County noting that the 168 increase in the tax base would be now with an additional potential for growth. He indicated that 169 millions of dollars are available now through the sale of land, park dedication fees, franchise 170 fees, permits and administrative fees. He stated that the Medtronic expansion would be a great 171 Mounds View EDA May 9, 2005 Regular Meeting Page 5 benefit to the City of Mounds View. 172 173 Commissioner Flaherty asked how they arrived at the $79 million projected in property taxes. 174 175 Mr. McCombs explained that this is part of the model they have been using, with the City and 176 with Ehlers, to determine the approximate number for tax dollars. He further explained that it is 177 based on the assessed property value over a period of time. 178 179 Commissioner Thomas noted that Ehlers review provided good detail. She stated that she would 180 like to see something available on Medtronic by the next meeting. 181 182 President Marty referenced the Anoka County assessment agreement and asked if the agreement 183 was for a finite period of time. 184 185 Mr. McCombs stated that they agreed to the assessment over the next three tax periods and 186 reviewed with the Commission. 187 188 President Marty referenced Mr. Mahle’s presentation stating that the slide reviewing the dollar 189 breakdown noting that one slide shows that $.66 goes to the City, County and Schools and 190 another slide shows $.63 and asked which is the correct number. 191 192 Mr. McCombs explained that they are working with Ehlers and the correct number, which was 193 received from Stacie Kvilvang just prior to the meeting, is $.63. He further explained that they 194 were not able to update the slide prior to the meeting to reflect the correct number. 195 196 President Marty stated that Ehlers would be attending a future meeting to explain the different 197 types of TIF and how it breaks down. He thanked Medtronic for their presentation and opened 198 the floor for comments. 199 200 Duane McCarty, 8060 Long Lake Road, stated hats off to Medtronic for all the good they do for 201 the communities they live in. He acknowledged that they run a business too and provided the 202 Council with a good historical background. He referenced the presentation made by Ehlers 203 Associates at the last meeting noting that the City would realize, with TIF, $4.7 million in total 204 taxes generated over a 26-year timeframe. He expressed concerns stating that Medtronic’s 205 contribution would be locked in a TIF fund for the length of the TIF District and until the project 206 is certified. He requested a projection of the land value for the golf course. He acknowledged 207 that the City is in the process of contemplating the value of the property noting that their arrival 208 on a number for the actual assessed value should be held proprietary at this time. He stated that 209 he worked on some figures using $7,228,000 as the base property value for tax purposes. He 210 explained that in using a conservative 3-percent gain from 2006 to 2033 the City would see a 3-211 percent increase and by 2033 the value of the land would be approximately $6.3 million. He 212 stated that 3-percent is very conservative noting that for purpose of comparison he used the 3-213 Mounds View EDA May 9, 2005 Regular Meeting Page 6 percent inflationary that Staff used on the golf course projections. He stated that the land value, 214 at the end, would be $16.5 million noting that with depreciation of the account, it would be free 215 of being necessary for defraying costs by 2019 and would be able to stand on its own. He 216 explained that his reason for bringing this up is because the numbers have been presented noting 217 that the total value of the land and assets along with the fixed assets, would be, at a minimum, 218 $26.2 million in equity. He stated that he is curious as to why the City of Mounds View would 219 let this jewel slip through their fingers when the numbers from Staff show a worth of $26 million 220 in TIF alone. 221 222 Barbara Haake, 3024 County Road I, acknowledged that Medtronic is a fabulous company 223 adding that she has a couple of questions. She noted that Medtronic has a beautiful campus 224 located in Fridley and asked why they did not expand in Fridley. She stated that she did some of 225 her own research on the assessment agreement with Anoka County stating that she found out that 226 there were areas available but that Medtronic did not want to pay the square footage amount. She 227 stated that it was her understanding that certain areas were also removed from the equation and 228 asked if this was true. She stated that rumor has it that they were only paying $80 per square foot 229 on the property and that Fridley could have sued. She asked for further clarification on the 230 assessment agreement. She asked for clarification on the calculations used to determine the park 231 dedication fees noting that the agreed amount is $600,000 and with a property valued at $8.5 232 million, based on the 10-percent calculation, shouldn’t the amount for park dedication fees 233 actually be $850,000. She asked if there were legal reasons that they were not able to use the 10-234 percent calculations noting that other businesses had to pay a 10-percent park dedication fee. She 235 stated that in summary she would like to know why Medtronic did not expand in Fridley; How 236 were they able to negotiate the conference and café square footage; and how did they come up 237 with the park dedication fee numbers. 238 239 Mr. Mahle explained that there was not enough room in Fridley for the size of the facility they 240 want to build. He stated that the initial project would be 840,000 square feet noting that they 241 would require additional space to expand up to 1.5 million square feet. 242 243 Mr. McCombs further explained that corporations have to plan for their future and Medtronic is 244 trying to project out how best to take care of their growth over the next ten to twenty years. He 245 stated that this move would help to address their growth needs over the next few years. He 246 referenced the assessment agreement in Anoka stating that there are different ways used in how 247 they calculate square footage, which was part of their discussion, through mediators, with Anoka. 248 He stated that through these discussions both parties agreed to numbers that were deemed 249 appropriate for that site. 250 251 City Administrator Ulrich acknowledged that the park dedication is less than the 10-percent used 252 as a standard for smaller projects. He acknowledged that there were legal issues and explained 253 that Staff did review other Communities to help determine the percentage that would be used, on 254 average, to determine park dedication fees in a project of this size. He stated that Staff is willing 255 Mounds View EDA May 9, 2005 Regular Meeting Page 7 to share the information if anyone is interested in reviewing. 256 257 City Attorney Riggs stated that there have been several successful legal challenges to having a 258 specific, standard percentage identified. He stated that they have given Council more flexibility 259 in determining fees noting that the 10-percent has been challenged successfully in a court of law. 260 261 Donn Hagmann, Medtronic, indicated that the proposed park dedication fee is more than four 262 times what they paid at the Fridley site expansion. He stated that he is not aware of another large 263 project, like this one, that has paid 10% noting that it has probably never happened. 264 265 President Marty indicated that the City Council does not have a complete consensus on this issue 266 either. 267 268 John McKusick, 8465 Eastwood Road, referenced the soil testing noting that there are still some 269 wells in the area and asked if they have any answers on the ground soil test results. 270 271 President Marty explained that they are waiting until mid-May, which is when the results would 272 actually be available. 273 274 Director Ericson stated that Staff is working with MPCA noting that the Minnesota Pollution 275 Control Agency has indicated that the results received so far, do not show anything that would be 276 considered an issue. He stated that they are waiting for final clarification from MPCA. 277 278 Greg Belting, 1525 Sherman Lake Road, Lino Lakes, stated that he has a chiropractic office 279 located in Mounds View and also serves on the Mounds View EDC. He acknowledged that 280 Mary Burg and the Golf Course have done a good job for the City noting that the Medtronic 281 project would represent the single largest economic development in the City. He stated that as a 282 business owner, having a world leader of medical devices wanting to locate in this community is 283 a once in a lifetime opportunity for the City. He encouraged the Commission to consider the 284 positive options and impact this project would have for the City and its residents. 285 286 President Marty closed the meeting to public comment. He stated that the City Council meeting 287 for the City of Mounds View was scheduled to begin two minutes ago. He stated that the 288 Commission would move to continue this discussion at the next EDA meeting in two weeks. He 289 stated that the meeting would also include a presentation from Ehlers Associates explaining the 290 TIF scenarios. 291 292 City Administrator Ulrich suggested scheduling the continuation of this discussion on a separate 293 night. He suggested holding the meeting at the Community Center to better accommodate the 294 size of the group that would be in attendance. 295 296 President Marty agreed that it would be a good idea to schedule the meeting on a separate night 297 Mounds View EDA May 9, 2005 Regular Meeting Page 8 in a larger room. He stated that it would eliminate the time constraints and allow the 298 Commission to move forward and cover as much ground as possible. He stated that he would 299 have Staff check out the Community Center schedule noting that the meeting would probably be 300 two to three weeks out. He stated that Staff would coordinate the dates with the Commissioners 301 and the Community Center and update the residents on the schedule. 302 303 President Marty closed the public hearing at 7:04 p.m. 304 305 MOTION/SECOND: Ulrich/Thomas. To approve the motion to continue the public hearing to 306 May 23, 2005 at 6:00 p.m. to allow Ehlers Associates to make presentations and to schedule a 307 public comment meeting on a date available two weeks from May 9, 2005. 308 309 Ayes –5 Nays – 0 Motion carried. 310 311 8. REPORTS 312 313 NONE 314 315 9. NEXT EDA MEETING: Monday, May 23, 2005 at 6:00 p.m. 316 317 10. ADJOURNMENT 318 319 President Marty adjourned the meeting at 7:09 p.m. 320 321 Respectfully submitted, 322 323 Recorded and transcribed by: 324 Bonnie Sullivan 325 TimeSaver Off Site Secretarial, Inc. 326