HomeMy WebLinkAbout06-13-2005
CITY OF MOUNDS VIEW
ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA
Monday, June 13, 2005
6:00 PM
(Revised as of Friday, June 10, 2005 @ 430pm)
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.
B. May 23, 2005, EDA Minutes.
6. CONSENT AGENDA
A. 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
8. REPORTS
9. NEXT EDA MEETING: Special Meeting of the EDA for June 20, 2005 at 6:00 pm at the
Mounds View Community Center, 5394 Edgewood Drive.
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 for 2205 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 McCombs and Rodger McCombs, representatives 88
from Medtronic, are present this evening to provide the Commission and the Residents of 89
Mounds View with a presentation. He stated that due to time constraints the discussion on tax 90
increment financing would be discussed at a future meeting. 91
92
Steve McCombs, Executive Vice President, Medtronic, President of Cardiac Management 93
Division, stated that he has been employed with Medtronic for the past 33 years. He provided 94
the Commission with an overview and history of Medtronic and the cardiac management 95
business. He explained what it means to Medtronic to be a good neighbor and provided an 96
overview of Medtronic’s mission statement. He stated that the Cardiac Rhythm Management is 97
the largest 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. McCombs stated that Medtronic currently operates a distribution center in the City and their 107
plan is to build one of the largest facilities Medtronic has anywhere in world. He stated that the 108
60-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. McCombs stated that in the coming year Medtronic’s total giving would be approximately 123
$45 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 McComb, 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. McComb 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. McComb stated that Medtronic deals with the tax issues noting that the TIF calculation that 164
was used was for $100.00 per square foot. He explained that Medtronic reached an agreement 165
with the City of Anoka to engage a third-party mediator to come to an agreement for $109 per 166
square foot as an appropriate charge. He explained that Medtronic pays taxes in Anoka County, 167
Ramsey County and Hennepin County noting that the increase in the tax base would be now with 168
an additional potential for growth. He indicated that millions of dollars are available now 169
through the sale of land, park dedication fees, franchise fees, permits and administrative fees. He 170
stated that the Medtronic expansion would be a great benefit to the City of Mounds View. 171
Mounds View EDA May 9, 2005
Regular Meeting Page 5
172
Commissioner Flaherty asked how they arrived at the $79 million projected in property taxes. 173
174
Mr. McComb explained that this is part of the model they have been using, with the City and 175
with Ehlers, to determine the approximate number for tax dollars. He further explained that it is 176
based on the assessed property value over a period of time. 177
178
Commissioner Thomas noted that Ehlers review provided good detail. She stated that she would 179
like to see something available on Medtronic by the next meeting. 180
181
President Marty referenced the Anoka County assessment agreement and asked if the agreement 182
was for a finite period of time. 183
184
Mr. McComb stated that they agreed to the assessment over the next three tax periods and 185
reviewed with the Commission. 186
187
President Marty referenced Mr. McCombs’s presentation stating that the slide reviewing the 188
dollar breakdown noting that one slide shows that $.66 goes to the City, County and Schools and 189
another slide shows $.63 and asked which is the correct number. 190
191
Mr. McCombs explained that they are working with Ehlers and the correct number, which was 192
received from Stacy just prior to the meeting, is $.63. He further explained that they were not 193
able to update the slide prior to the meeting to reflect the correct number. 194
195
President Marty stated that Ehlers would be attending a future meeting to explain the different 196
types of TIF and how it breaks down. He thanked Medtronic for their presentation and opened 197
the floor for comments. 198
199
Duane McCarty, 8060 Long Lake Road, stated hats off to Medtronic for all the good they do for 200
the Communities they live in. He acknowledged that they run a business too and provided the 201
Council with a good historical background. He referenced the presentation made by Ehlers 202
Associates at the last meeting noting that the City would realize, with TIF, $4.7 million in total 203
taxes generated over a 26-year timeframe. He expressed concerns stating that Medtronic’s 204
contribution would be locked in a TIF fund for the length of the TIF District and until the project 205
is certified. He requested a projection of the land value for the golf course. He acknowledged 206
that the City is in the process of contemplating the value of the property noting that their arrival 207
on a number for the actual assessed value should be held proprietary at this time. He stated that 208
he worked on some figures using $7,228,000 as the base property value for tax purposes. He 209
explained that in using a conservative 3-percent gain from 2006 to 2033 the City would see a 3-210
percent increase and by 2033 the value of the land would be approximately $6.3 million. He 211
stated that 3-percent is very conservative noting that for purpose of comparison he used the 3-212
percent inflationary that Staff used on the golf course projections. He stated that the land value, 213
Mounds View EDA May 9, 2005
Regular Meeting Page 6
at the end, would be $16.5 million noting that with depreciation of the account, it would be free 214
of being necessary for defraying costs by 2019 and would be able to stand on its own. He 215
explained that his reason for bringing this up is because the numbers have been presented noting 216
that the total value of the land and assets along with the fixed assets, would be, at a minimum, 217
$26.2 million in equity. He stated that he is curious as to why the City of Mounds View would 218
let this jewel slip through their fingers when the numbers from Staff show a worth of $26 million 219
in TIF alone. 220
221
Barbara Haake, 3024 County Road I, acknowledged that Medtronic is a fabulous company 222
adding that she has a couple of questions. She noted that Medtronic has a beautiful campus 223
located in Fridley and asked why they did not expand in Fridley. She stated that she did some of 224
her own research on the assessment agreement with Anoka County stating that she found out that 225
there were areas available but that Medtronic did not want to pay the square footage amount. She 226
stated that it was her understanding that certain areas were also removed from the equation and 227
asked if this was true. She stated that rumor has it that they were only paying $80 per square foot 228
on the property and that Fridley could have sued. She asked for further clarification on the 229
assessment agreement. She asked for clarification on the calculations used to determine the park 230
dedication fees noting that the agreed amount is $600,000 and with a property valued at $8.5 231
million, based on the 10-percent calculation, shouldn’t the amount for park dedication fees 232
actually be $850,000. She asked if there were legal reasons that they were not able to use the 10-233
percent calculations noting that other businesses had to pay a 10-percent park dedication fee. She 234
stated that in summary she would like to know why Medtronic did not expand in Fridley; How 235
were they able to negotiate the conference and café square footage; and how did they come up 236
with the park dedication fee numbers. 237
238
Mr. McCombs explained that there was not enough room in Fridley for the size of the facility 239
they want to build. He stated that the initial project would be 840,000 square feet noting that 240
they would require additional space to expand up to 1.5 million square feet. 241
242
Mr. McComb further explained that corporations have to plan for their future and Medtronic is 243
trying to project out how best to take care of their growth over the next ten to twenty years. He 244
stated that this move would help to address their growth needs over the next few years. He 245
referenced the assessment agreement in Anoka stating that there are different ways used in how 246
they calculate square footage, which was part of their discussion, through mediators, with Anoka. 247
He stated that through these discussions both parties agreed to numbers that were deemed 248
appropriate for that site. 249
250
City Administrator Ulrich acknowledged that the park dedication is less than the 10-percent used 251
as a standard for smaller projects. He acknowledged that there were legal issues and explained 252
that Staff did review other Communities to help determine the percentage that would be used, on 253
average, to determine park dedication fees in a project of this size. He stated that Staff is willing 254
to share the information if anyone is interested in reviewing. 255
Mounds View EDA May 9, 2005
Regular Meeting Page 7
256
City Attorney Ryggs stated that there have been several successful legal challenges to having a 257
specific, standard percentage identified. He stated that they have given Council more flexibility 258
in determining fees noting that the 10-percent has been challenged successfully in a court of law. 259
260
Don Hagman, Medtronic, indicated that the proposed park dedication fee is more than four times 261
what they paid at the Fridley site expansion. He stated that he is not aware of another large 262
project, like this one, that has paid 10% noting that it has probably never happened. 263
264
President Marty indicated that the City Council does not have a complete consensus on this issue 265
either. 266
267
John McKusick, 8465 Eastwood Road, referenced the soil testing noting that there are still some 268
wells in the area and asked if they have any answers on the ground soil test results. 269
270
President Marty explained that they are waiting until mid-May, which is when the results would 271
actually be available. 272
273
Director Ericson stated that Staff is working with MPCA noting that the Minnesota Pollution 274
Control Agency has indicated that the results received so far, do not show anything that would be 275
considered an issue. He stated that they are waiting for final clarification from MPCA. 276
277
Greg Newman, 1525 Sherman Lake Road, Lino Lakes, stated that he has a chiropractic office 278
located in Mounds View and also serves on the Mounds View EEC. He acknowledged that Mary 279
Burg and the Golf Course have done a good job for the City noting that the Medtronic project 280
would represent the single largest economic development in the City. He stated that as a 281
business owner, having a world leader of medical devices wanting to locate in this Community is 282
a once in a lifetime opportunity for the City. He encouraged the Commission to consider the 283
positive options and impact this project would have for the City and its’ residents. 284
285
President Marty closed the meeting to public comment. He stated that the City Council meeting 286
for the City of Mounds View was scheduled to begin two minutes ago. He stated that the 287
Commission would move to continue this discussion at the next EDA meeting in two weeks. He 288
stated that the meeting would also include a presentation from Ehlers Associates explaining the 289
TIF scenarios. 290
291
City Administrator Ulrich suggested scheduling the continuation of this discussion on a separate 292
night. He suggested holding the meeting at the Community Center to better accommodate the 293
size of the group that would be in attendance. 294
295
President Marty agreed that it would be a good idea to schedule the meeting on a separate night 296
in a larger room. He stated that it would eliminate the time constraints and allow the 297
Mounds View EDA May 9, 2005
Regular Meeting Page 8
Commission to move forward and cover as much ground as possible. He stated that he would 298
have Staff check out the Community Center schedule noting that the meeting would probably be 299
two to three weeks out. He stated that Staff would coordinate the dates with the Commissioners 300
and the Community Center and update the residents on the schedule. 301
302
President Marty closed the public hearing at 7:04 p.m. 303
304
MOTION/SECOND: Ulrich/Thomas. To approve the motion to continue the public hearing to 305
May 23, 2005 at 6:00 p.m. to allow Ehlers Associates to make presentations and to schedule a 306
public comment meeting on a date available two weeks from May 9, 2005. 307
308
Ayes –5 Nays – 0 Motion carried. 309
310
8. REPORTS 311
312
NONE 313
314
9. NEXT EDA MEETING: Monday, May 23, 2005 at 6:00 p.m. 315
316
10. ADJOURNMENT 317
318
President Marty adjourned the meeting at 7:09 p.m. 319
320
Respectfully submitted, 321
322
Recorded and transcribed by: 323
Bonnie Sullivan 324
TimeSaver Off Site Secretarial, Inc. 325
PROCEEDINGS OF THE MOUNDS VIEW EDA 1
CITY OF MOUNDS VIEW 2
RAMSEY COUNTY, MINNESOTA 3
4
Regular Meeting 5
May 23, 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: President Marty, Vice President Stigney, Commissioner Flaherty, and 14
Commissioner Gunn. 15
16
NOT PRESENT: Commissioner Thomas 17
18
3. APPROVAL OF AGENDA 19
20
MOTION/SECOND: Gunn/Flaherty. To Approve the May 23, 2005 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
A. EDA Minutes May 9, 2005 31
32
City Administrator Ulrich had the following corrections: 33
• Page 8, line 306 – the motion should be Marty/Thomas not Ulrich/Thomas. 34
35
President Marty had the following corrections: 36
• Page 3, line 88 – Rodger McCombs should be Rodger McComb 37
• Page 4, line 138 – ‘facility mgmt’ should read ‘facility management’ 38
39
MOTION/SECOND: Gunn/Flaherty To Approve the Minutes of May 9, 2005 as amended. 40
41
Ayes – 4 Nays – 0 Motion carried. 42
43
Mounds View EDA May 23, 2005
Regular Meeting Page 2
6. CONSENT AGENDA 44
45
A. Set a Special Meeting of the EDA for June 20, 2005 at 6:00 p.m. at the 46
Mounds View Community Center, 5394 Edgewood Drive. 47
B. Schedule an Executive Session immediately following this meeting to discuss 48
and consider the sale of real property commonly known as The Bridges Golf 49
Course, and a buyout offer of the billboard signs (Verbal Report). 50
51
MOTION/SECOND: Flaherty/Marty. To Approve the Consent Agenda as presented. 52
53
Ayes – 4 Nays – 0 Motion carried. 54
55
Duane McCarty asked the Commission what State Statute applies to the Executive Session 56
scheduled for this evening. 57
58
City Attorney Riggs stated that Minnesota State Statute 13d, Subdivision 3.C.3 59
60
Duane McCarty asked if the value of the property has been determined and if the Executive 61
Session is to specifically discuss the appraisal value. 62
63
President Marty stated that the property values have not yet been determined. 64
65
City Administrator Ulrich clarified that the purpose of the Executive Session is to discuss the 66
general specifics of the property purchase. 67
68
City Attorney Riggs further explained that the purpose for the Executive Session is to deal with 69
the terms of the offer. He stated that Council has to determine if the offer is acceptable or if there 70
is a need to counter the offer. 71
72
7. EDA BUSINESS 73
74
A. 6:05 pm. Continuation of the May 9, 2005 Public Hearing for the Purpose of 75
Considering the Proposed Sale of Land comprising The Bridges of Mounds 76
View Golf Course to Medtronic, Inc. 77
78
Stacy Kvilvang, Ehlers & Associates provided the Commission with an overview of the Tax 79
Increment Financing process noting that it provides the ability to capture and use the increased 80
local property tax revenues from new development within a defined geographic area. She 81
provided examples of the eligible uses and reviewed the building blocks of TIF. She reviewed 82
the process used to determine the base value of a property noting that they are in discussion with 83
the County Assessor in an effort to determine the accurate value of the property. 84
85
Mounds View EDA May 23, 2005
Regular Meeting Page 3
Ms. Kvilvang stated that one item, fiscal disparities, requires discussion. She stated that State 86
law requires new commercial/industrial properties in the 7-County metro area to contribute 40-87
percent of the valuation to an area-wide pool for all local taxing jurisdictions. She reviewed the 88
impacts noting that the EDA has indicated that the fiscal disparities would be paid inside the tax 89
district. She reviewed the items not captured for TIF noting that in this case Medtronic’s base 90
taxes comprise approximately 6-percent. She stated that the net TIF to Medtronic would be 37-91
percent or approximately $ .37 of each dollar they pay in taxes. She explained that the 92
Development Agreement is the binding contract and includes all of the details for the project and 93
all of the terms as to how the project would move forward. She stated that the City would pay as 94
they go through the project. She explained that the Developer would bear the brunt of the initial 95
costs and would be required to show proof of completion and payment before the City would 96
make payment to the Developer. She stated that the Developers would pay their taxes; the City 97
would then determine the tax increment and forward payment to Medtronic. 98
99
Ms. Kvilvang reviewed the Development Performa, the comparable land costs and future 100
development potential for the site. She provided the Commission with a an overview of the 2005 101
Ramsey County Ranking data noting that the information is based on 2004 data. She stated that 102
at the County level Mounds View is ranked Number 1 and explained that there are three Districts 103
in the City because of the base valuation noting that anything captured for the tax increment base 104
would be a bit higher. She stated that at a State level, in 2004, Mounds View was ranked 11 105
noting that based on the 2005 data the City’s ranking falls to 26. She stated that they plan to do a 106
comparison that would show where Mounds View falls in the ranking for tax increment 107
percentages. 108
109
Ms. Kvilvang stated that the next step includes special legislation noting that they were initially 110
looking at a redevelopment district. She explained that when the proposal moved to the House 111
the same legislation was introduced noting that changes were made and the District was changed 112
to an Economic Development District. She further explained that an extension was provided that 113
gives the same benefits and reviewed with the Commission. She stated that the final version 114
would come back to the City for approval and would also be reviewed and approved by the 115
School Board and County. She stated that the review and consideration for approval of the 116
Development Agreement is scheduled for June 20, 2005 and from there it would then move 117
through the standard City approval process. 118
119
President Marty opened the public hearing at 6:29 p.m. 120
121
Barbara Haake, 3420 County Road I referenced the Executive Session scheduled to discuss The 122
Bridges stating that from her perspective this a done deal. She referenced the May 4th article in 123
the newspaper about proposed property sale values of $300,000 an acre in Blaine and Roseville, 124
noting that Residents have been told that the City would get $120,000 an acre, and urged the 125
Commission not to ask for anything less than $250,000 per acre. She expressed concerns stating 126
that it feels as if Mounds View is getting taken adding that this is not a good deal for the City of 127
Mounds View EDA May 23, 2005
Regular Meeting Page 4
Mounds View. She asked the Commission not to consider TIF and asked what kind of taxes 128
would the City of Mounds View receive if the property, valued close to $85 million, were not 129
under TIF. She expressed frustration stating that she has requested copies of the options 130
available on several occasions and has yet to receive the information. 131
132
Ms. Kvilvang explained that she does not have the numbers adding that they would work with 133
the Assessor to see what the value is and run the numbers through TIF. 134
135
President Marty stated that they should probably get a few quotes from realtors in addition to the 136
numbers from the Assessor. He stated that it would be interesting to see how it would be 137
marketed from a realtor’s perspective. 138
139
Duane McCarty, 8060 Long Lake Road, referenced 469.175 – Establishing and Changing TIF 140
plans, Subdivision 3, states that a County Auditor shall not certify until a tax increment financing 141
plan for the proposed project has been approved by the municipality in which it is located in. He 142
clarified his understanding is that the Auditor cannot certify until the land has been approved. He 143
stated that the residents are very frustrated with the whole process. He reviewed future estimate 144
values and projected depreciation of cash accounts with the Commission noting that the numbers 145
are based on information from the City Finance Department and the Ramsey County Abstract 146
Value for 2005. He noted that the current numbers are more conservative than the numbers used 147
in 1988 and expressed concerns that the City is taking a very conservative 3-percent gain over a 148
30-year term. He stated that they would find that the conservative real estate value appreciation 149
is $16.5 million at the end of the term and the ending cash account would be approximately $6.7 150
million, with a total value, over a period of time, would be approximately $20 million. He stated 151
that Ms. Haake made a good point and asked the Commission to clarify the numbers that they are 152
dealing with and where they are coming from. He suggested that the City utilize appraisal 153
companies and get two or three appraisals to get a better idea of what they are dealing with. He 154
noted that the airport would increase land value considerably adding that the City is not dealing 155
with solid numbers here. He stated that he, along with other Residents, is getting weary as they 156
are not getting any answers to the questions asked. He stated that the Community expected more 157
from the City of Mounds View. 158
159
President Marty acknowledged Mr. McCarty’s concerns and agreed that the Commission and the 160
Residents have not been able to fully discuss all of the issues and their concerns. He explained 161
that there has not been enough time to fully discuss the issues with the EDA meetings scheduled 162
to take place before the City Council meetings. He agreed that the process has been very slow 163
adding that a special meeting has been scheduled for Monday, June 20, 2005 at 6:00 p.m. to 164
discuss the issues. He stated that the meeting would be held at the Banquet Center and would 165
have the same format as the Town Hall meeting. He stated that it is their hope to have more 166
information available that would help to answer a lot of the questions raised by the Community. 167
He stated that he too has several questions noting that he discovered this weekend that this 168
District is set up as an Economic Development District with an eight-year term. He stated that in 169
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Regular Meeting Page 5
reading the House bill it was portrayed at the Capital that the City of Mounds View requested 170
that the District be extended from an 8-year to a 25-year district. He stated that he was not aware 171
that anyone on the EDA had asked to extend the District and clarified that in the discussions they 172
have held the questions asked are if there are any possible ways to reduce the District from 25 173
years to 20 or 15 years. 174
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Ms. Haake offered to help the Commission work with the Representatives on this issue. She 176
stated that if they would give her the information, signed, that she would discuss their concerns 177
with the Representatives and work to resolve the issues. 178
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Daniel Hall, 2200 Highway 10 noted that the Commission and Council have had a tough time 180
noting that they do not have all of the facts and figures available to make a good decision. He 181
suggested that the Commission and Council making sure that they have some parameters on the 182
numbers for the June 20th meeting. He agreed stating that the City should get some real numbers 183
together and obtain a few appraisals prior to the June 20th meeting, as they should know the 184
numbers before making all of these big decisions. 185
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President Marty stated that this Public Hearing would be continued to Monday, June 20, 2005. 187
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Commissioner Gunn suggested to the Residents that they write out their questions and place it in 189
the drop box located at City Hall. She stated that this would give Staff the opportunity to review 190
and have answers available at the June 20th meeting. 191
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Tim Mitchell, 2280 Knollwood Drive, stated that this is the best golf course he has ever played in 193
his life. He stated that people love the course adding that he would be totally upset of the golf 194
course goes. He stated that it is his hope that The Bridges would continue. 195
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Darlene Cherry, Roseville, stated that she plays at The Bridges quite often, as it is a unique and 197
affordable course. She stated that The Bridges is a family oriented course and a good place for 198
both youth and adults. She noted that The Bridges is profitable now that it has the billboard 199
contract and revenue. She urged the Commission to keep The Bridges. She stated that if they 200
decide to sell the property to Medtronic the Commission should consider building a smaller golf 201
course, similar to The Bridges. 202
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Sue Jung, Regional Manager, Country Suites/Holiday Express, Coon Rapids stated that 204
Medtronic is a wonderful asset to a Community noting that Medtronic is one of their top ten 205
accounts. She stated that Medtronic is a real asset and would help the Community grow. 206
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President Marty closed the public hearing at 6:52 p.m. 208
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MOTION/SECOND: Gunn/Flaherty. To approve the motion to continue the Public Hearing to 210
Monday June 20, 2005 at 6:00 p.m. 211
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Ayes – 4 Nays – 0 Motion carried. 213
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8. REPORTS 215
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NONE 217
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9. NEXT EDA MEETING: Monday, June 13, 2005 at 6:30 p.m. 219
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10. ADJOURNMENT 221
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The Commission agreed, by consensus, to adjourn at 6:54 p.m. 223
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Respectfully submitted, 225
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Recorded and transcribed by: 227
Bonnie Sullivan 228
TimeSaver Off Site Secretarial, Inc. 229