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HomeMy WebLinkAbout12-12-2005 CITY OF MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY MEETING AGENDA NEW BRIGHTON CITY HALL Monday, December 12, 2005 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. July 25, 2005, EDA Minutes B. September 12, 2005, EDA Minutes C. November 28, 2005, EDA Minutes. 6. CONSENT AGENDA A. The EDA Meeting scheduled for Tuesday, December 27, 2005 is cancelled. (no staff report) 7. EDA BUSINESS A. Review Medtronic CRM Development Project Acceleration; Request City Council Establish a Public Hearing to Consider a Proposed Modification to TIF District #5. 8. REPORTS 9. NEXT EDA MEETING: Monday, January 9, 2006 @630pm 10. ADJOURNMENT PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 July 25, 2005 6 Mounds View City Hall 7 2401 Highway 10, Mounds View, MN 55112 8 6:30 P.M. 9 10 11 1. CALL MEETING TO ORDER 12 13 2. ROLL CALL: President Marty; Vice President Stigney, Commissioners Flaherty, Gunn 14 and Thomas. 15 16 NOT PRESENT: 17 18 3. APPROVAL OF AGENDA 19 20 Director Ericson asked to move Item 6A from the Consent Agenda to Item 7C EDA Business for 21 discussion. 22 23 MOTION/SECOND: Thomas/Stigney. To Approve the July 25, 2005 Agenda as amended. 24 25 Ayes – 5 Nays – 0 Motion carried. 26 27 4. PUBLIC INPUT 28 29 None. 30 31 5. APPROVAL OF MINUTES. 32 33 A. EDA Minutes June 27, 2005 34 35 Commissioner Thomas had the following correction: 36 • Page 13, line 456, she clarified that tabling of a motion was not in order because there is no 37 motion. 38 39 President Marty had the following corrections: 40 • Page 2, line 56, reads: ‘Executive Session’; should read: ‘Executive Sessions’ 41 • Page 3, line 97, reads: ‘patterns are currently and how they would proceed if there were a 42 development on the site.’; should read: ‘patterns are currently, and how they would proceed 43 if there were a development on the site.’ 44 • Page 6, line 253, reads: ‘and have all answers’; should read: ‘and have all the answers’. 45 Mounds View EDA July 25, 2005 Regular Meeting Page 2 • Page 7, line 279, Brian Amundsen’s statement, reads: ‘gives a tax business’; should read: 46 ‘give a business a tax break’ 47 • Page 9, line 368, reads: ‘the EDA to negotiation this project’; should read: ‘the EDA to 48 negotiate this project’. 49 • Page 10, line 406, reads: ‘adding that the do not believe’; should read: ‘adding that they do 50 not believe’. 51 • Page 12, line 506, asked Commissioner Flaherty to clarify the $778,000 per year. 52  Commissioner Flaherty explained that he had factored in the $5 million of surplus the 53 City received and spread that out over the 25-years for the district. 54 • Page 14, line 590, reads: ‘approximately $3 million’; should read: ‘approximately $300 55 million’. 56 • Page 15, line 602, reads: ‘noting that they would have the resources’; should read:’ noting 57 that they would not have the resources’. 58 • Page 15, line 604, reads: ‘over the last number years’; should read: ‘over the last number of 59 years’. 60 • Page 16, line 649, reads: ‘He stated that this is not a fair’; should read: ‘She stated that this is 61 not a fair’. 62 63 MOTION/SECOND: Marty/Flaherty Approve the Minutes of June 27, 2005 as amended. 64 65 Ayes – 5 Nays – 0 Motion carried. 66 67 6. CONSENT AGENDA 68 69 A. Moved to EDA Business Item 7C for discussion. Set a Public Hearing for August 70 8, 2005 for Discussion of the Proposed Business Subsidy for the SYSCO 71 Minnesota Expansion Project. 72 73 7. EDA BUSINESS 74 75 A. Review and Consider Possible Acquisition of 2617 Sherwood Road, a 76 Property identified as a Blighted and Hazardous Building. 77 78 Community Development Director Ericson stated that 2617 Sherwood Road is vacant and 79 currently uninhabitable. He noted that last year on October 11th the City Council adopted a 80 resolution ordering the abatement of the property and since that point the City has been working 81 with the property owners in trying to correct the deficiencies. He stated that so far they have 82 been unsuccessful in getting anything accomplished. He stated that they have set multiple court 83 dates, there have been continuances adding that Kennedy and Graven have been working on this 84 on the City’s behalf noting that they have come to a possible agreement that they City could look 85 at this as a potential housing replacement program parcel. He stated that it is on the City’s list 86 and does meet all the requirements for blighted parcel for redevelopment. He stated that Staff 87 Mounds View EDA July 25, 2005 Regular Meeting Page 3 has put together a resolution asking for the Commission’s approval to get an appraisal done on 88 the property and negotiate a price and bring it back for the EDA’s consideration. He stated that 89 they did seek quotes for an appraisal and it could be done for approximately $400.00 90 91 Commissioner Thomas asked what the difficulty is with the homeowners, is it a difficulty in 92 contacting them or are they not willing to do the repairs. 93 94 Director Ericson explained that it is a combination of things noting that they are dealing with a 95 mortgage company and an individual who acquired the property as a potential investment 96 property not realizing there were so many issues with the property. He stated that originally the 97 City was dealing with a pair of property owners that are no longer in the picture and are now 98 dealing with a bank that has never visited or seen the property. He stated that it is difficult trying 99 to convince them that they now need to spend $25,000 to make repairs to a property that they 100 already have $175,000 invested into it. He stated that someone is making the determination that 101 it isn’t prudent to put any more money into the property. 102 103 Commissioner Flaherty asked if the property has been forfeited to the mortgage company. 104 105 Director Ericson stated that there is a property owner noting that he is not sure if there was a sale 106 of the property noting that over the last year the City has been dealing with four different groups 107 in effort to correct the deficiencies. He stated that the current property holder is Deutsch Bank. 108 109 Commissioner Flaherty asked if the City is anticipating forfeiture. 110 111 Director Ericson stated that at this point the City is not anticipating forfeiture. He explained that 112 they are not dealing with a resident they are dealing with an investment corporation. 113 114 Commissioner Flaherty asked if the City knows the loan value of the existing mortgage. 115 116 Director Ericson stated that the City has been told that it is approximately $179,000. He stated 117 that the City would seek an appraisal and offer fair market value for the property, which might 118 not be in that price range. 119 120 President Marty noted that in the Staff report the owner has agreed to a potential purchase by the 121 City and suggested moving forward with the appraisal. 122 123 Vice President Stigney clarified that if the bank now owns the property then they are responsible 124 for the condition it is in and asked if the City has leverage to have them repair the property versus 125 the City. 126 127 Director Ericson stated that Staff is looking at this option and explained that it is time 128 consuming. He noted that legal fees have been expended due to several continuances, delays and 129 Mounds View EDA July 25, 2005 Regular Meeting Page 4 negotiations. He explained that the City is dealing with an owner that is not local and it has been 130 difficult trying to convince the property owner, the bank, that they should the corrections 131 identified and called out by the Housing Department or remove the building, which is what the 132 City is recommending. He agreed that the City could continue through the court process but 133 Staff believes this might be the quicker remedy. 134 135 Commissioner Gunn asked if the lot is dividable. 136 137 Director Ericson stated that at this point it is not dividable because Greenwood Drive, at that 138 point, is unapproved right-of-way adding that at some point in the future it could be subdivided. 139 140 MOTION/SECOND Gunn/Thomas To Approve Resolution 05-EDA-205 Authorizing an 141 Appraisal be conducted on the Residential Property located at 2617 Sherwood Road. 142 143 Ayes-5 Nays-0 Motion carried. 144 145 B. Resolution 05-EDA-206 Authorizing Payment of Pay-As-You-Go Developer 146 Payments to Heartland-Mounds View Common Bond, and Bridges Leasing 147 Company. 148 149 Economic Development Coordinator Backman stated that there are currently three on-going 150 developer agreements, the Mermaid, Silver Lake Point and The Bridges. He noted that the 151 Mermaid has a slightly different schedule adding that the Heartland-Mounds View Common 152 Bond for the Silver Lake Point project in the amount of $34,078.73 and for The Bridges Leasing 153 Company in the amount of $27,423.00 would be due August 1, 2005. 154 155 President Marty stated this is the City’s obligation to pay back the developers per the City 156 agreement. 157 158 Vice President Stigney clarified that these are both TIF. 159 160 Economic Development Coordinator Backman confirmed noting that The Bridges leasing would 161 be done in Feb 2006. 162 163 MOTION/SECOND. Stigney/Flaherty To Approve the motion to Adopt Resolution 05-EDA-164 206 Authorizing Payment of Pay-As-You-Go Developer Payments to Heartland-Mounds View 165 Common Bond; and Bridges Leasing Company and waive the reading. 166 167 Ayes-5 Nays-0 Motion carried 168 169 Mounds View EDA July 25, 2005 Regular Meeting Page 5 C. Set a Public Hearing for August 8, 2005 for Discussion of the Proposed 170 Business Subsidy for the SYSCO Minnesota Expansion Project. 171 172 Economic Development Coordinator Backman stated that as part of the process for business 173 subsidies the current legislation requires that there be a business subsidy hearing, which has a 174 minimum requirement of a ten-day notice. He stated that Staff is looking to schedule a hearing 175 for August 8, 2005. He stated that last Wednesday Scott McGuire submitted a TIF application 176 along with a check noting that the application shows when they would like to start construction 177 and also includes a breakdown of the revised budget. He indicated that the previously submitted 178 budget was a bit low on the electrical work and has been revised to reflect the changes. He 179 referenced the portion of the budget as it relates to stormwater management and explained that 180 they are asking that a portion of the wetland mitigation/stormwater management component be 181 paid for via TIF assistance. He stated that they are in discussion with the Rice Creek Watershed 182 District noting that this is a significant component of the project, which would be the expansion 183 of the of the proposed parking lot. He referenced the map noting that approximately three-acres 184 of the land, to the east and to the south, would be transferred back from the City of Mounds View 185 to SYSCO for this project. 186 187 Director Ericson explained that one of the reasons this was pulled from the agenda is because 188 Staff would need to draft a development agreement for review at the August 8, 2005 meeting. 189 He stated that they would like to have something that the EDA would be comfortable with in 190 terms of a dollar amount that could be entered into the development agreement. He clarified that 191 Staff is not asking for authorization at this time but rather to get a consensus on the dollar 192 amount noting that it would be helpful. 193 194 President Marty clarified that they are considering possibly $250,000 as TIF eligible. 195 196 Commissioner Thomas clarified that it is basically saying that there is approximately $300,000 197 plus dollars that would be TIF eligible. 198 199 Economic Development Coordinator Backman stated that right now SYSCO is requesting 200 $250,000 adding that they do recognize that the costs would exceed that amount. 201 202 Vice President Stigney referenced TIF noting that in listening to some of the EDC meetings they 203 don’t have handle on it. He suggested a meeting with the EDA and Council to see where they are 204 with all of the TIF districts, what the balances are, and determine when they would be closed out 205 or would they be stretched out to maintain the current TIF districts. He stated that they should 206 look at the big picture stating that it is important to get these items clarified first. He recalled that 207 the SYSCO property could have been turned back over to the tax base in 2006. 208 209 Economic Development Coordinator Backman stated that the final obligation for TIF District 3 is 210 the payment to Bridges Leasing, which is around $30,000.00 for the Spring 2006. He stated that 211 Mounds View EDA July 25, 2005 Regular Meeting Page 6 the EDA has the option to look at de-certification or consider a continuance. He stated that if 212 they continue the TIF District 3 there should be projects that are looked at within that district. He 213 stated that they could not hoard the dollars and they cannot have dollars coming in and not spend 214 it for the purpose it was intended, which is economic development. He explained that in terms of 215 this particular district it is a healthy district noting that they get well over $300,000 a year in 216 increment payments. He stated that it is primarily derived by SYSCO, some derived by ZEPP 217 and some derived by Bridges Leasing, but the majority is derived by SYSCO. He stated that they 218 have had some discussions with Ehlers about doing a complete analysis of all of the districts but 219 the initial review is that they are fairly close to the original figure of approximately $1 million. 220 221 Vice President Stigney stated that he would like to see it in black and white as to where the City 222 is at and what the priorities are for the expenditures of the funds as to whether it would be put 223 back and paying the down the tax base or keep the Districts going. He stated that there is a need 224 for further discussion noting that they now have SYSCO asking for money and eventually 225 Snyder’s would be coming in to ask for the same thing. He expressed concerns about the 226 amounts being spent. He stated that he wants the details and the big picture of the project. He 227 stated that he has problems with the amounts and has problems with mitigating offsite. He 228 expressed concerns about the removal of the trees to make way for the parking lot adding that he 229 would like to see a joint meeting with Council and Staff to determine the philosophy and 230 direction on TIF for all of the districts. 231 232 President Marty agreed with Vice President Stigney. 233 234 Director Ericson agreed stating that this is what Staff is planning to do noting that if they can get 235 the information prepared and presented from Ehlers for the September work session. He stated 236 that this would be the perfect opportunity to discuss the philosophy, the health of the TIF 237 districts, whether the City would de-certify or are they going to fund other projects and at what 238 level. He stated that these are all issues that should be discussed with the EDA, the City Council 239 and Staff. He stated that this should be on the September or October work session agenda. He 240 stated that Staff would have a plan for the future but also need to know where they are today. He 241 stated that in terms of cash on hand, Economic Development Coordinator Backman indicated 242 that the City would have approximately $1 million in the TIF account this year adding that what 243 is being proposed would not be out of the TIF pool, but rather an ongoing obligation similar to 244 the original SYSCO agreement, which is a pay as you go note. He stated that it would not impact 245 the account as to what is on hand adding that Staff recognizes and appreciates the comments 246 from the EDA. 247 248 Vice President Stigney stated that it would impact the taxpayers noting that the City either 249 extends the district and pay as you go or close the district. He stated that he has concerns noting 250 that the public hearing is scheduled for August 8, 2005 and he would like the information prior to 251 the public hearing. He suggested rescheduling the public hearing in order to give them the 252 opportunity to review all of the information. He stated that this is bigger than just looking at this 253 Mounds View EDA July 25, 2005 Regular Meeting Page 7 spot with SYSCO, it is what they are doing with the $1 million. 254 255 President Marty stated that SYSCO does have a need and they are showing the need at this time. 256 257 Economic Development Coordinator Backman stated that he has two observations, one, in terms 258 of the trees, what they are talking about would impact less than 5-percent of the area that is out 259 there with the former SYSCO property adding that it is not his belief that there would be a huge 260 impact on the Cottonwoods and other trees on the property; secondly, in terms of the process 261 here, the applicant has presented a good project and they are facing a situation where they do 262 need to expand this year or the project would move elsewhere. He encouraged EDA to consider 263 this project at this time. 264 265 Commissioner Thomas stated that she has questions about what the City is planning to do with 266 TIF noting that she is not comfortable with continuing the pay as you go for TIF District 3 when 267 it is an option that they could begin discussions for closing the district next year. She asked if 268 they have to decide if it comes from the pool funds or the TIF District 3 funds by the August 8th 269 hearing or can they say they are comfortable with the number and sort out what they have from 270 the TIF or whether it comes from the pool or TIF District 3 at some point following that meeting. 271 272 Director Ericson stated that it has been recommended that they do not utilize the TIF pool for this 273 and that it has been recommended by the City’s Financial Advisors that the City should do a pay 274 as you go note if the City does offer financial assistance. He explained that providing a $250,000 275 lump sum, upfront payment, sets a pretty precedent in terms of future requests. 276 277 Economic Development Coordinator Backman stated that if this were set as a pay as you go over 278 a three-year period the EDA would have the ability to de-certify this district in 2008. 279 280 Commissioner Flaherty stated that he is all in favor of having a meeting with the Authority and 281 asked SYSCO to be patient with the Authority. He stated that the Authority understands that 282 SYSCO does have a need and asked them to allow the Authority, as a body, to take a week to get 283 their information together to see where they are at with the districts. He stated that they want to 284 do what is right for SYSCO and the citizens of Mounds View. 285 286 President Marty clarified that it would not be a week or two that it would be over a month and is 287 a construction issue. 288 289 Commissioner Flaherty acknowledged noting that they are looking at November completion. 290 291 Economic Development Coordinator Backman stated that they have had discussions with Shelly 292 at Ehlers and given their schedule the soonest timeframe they could get the information would be 293 in the August/September timeframe referenced by Director Ericson. 294 295 Mounds View EDA July 25, 2005 Regular Meeting Page 8 President Marty stated that he is comfortable with this as a pay as you go for $250,000. He 296 agreed that they do need to sort this out and would also look forward to meeting with the EDC 297 and Staff to review some of the priorities, what direction they are going and the goals of the City. 298 He noted that SYSCO is operating under a timeframe and he does see this as a valid request. 299 300 Commissioner Gunn asked for clarification of the de-certification in 2008. 301 302 Economic Development Coordinator Backman explained that if there were an approval in 2005 303 the City would have 2006, 2007 and 2008 as potential years for incremental payments as 304 developer payments back to SYSCO. He further explained that there could be action taken at the 305 end of 2008, effective in 2009 to end the district noting that it would end the district five years 306 early. 307 308 Vice President Stigney asked if it would mean $82,500 for next the next three years or would it 309 be divided over four years. He stated that he is not comfortable with the $250,000.00 amount. 310 311 Economic Development Coordinator Backman stated that this could be a decision made by this 312 body. 313 314 President Marty clarified that he is hearing that the August 8th date should be kept for the public 315 hearing. 316 317 Economic Development Coordinator Backman asked if they were considering the three-year 318 timeframe. 319 320 President Marty stated that the timeframe could be discussed at the hearing. 321 322 Director Ericson stated that they could invite the EDC to the September meeting to discuss this 323 issue. 324 325 Barbara Haake, 3024 County Road I, clarified that the EDA is planning to have the public 326 hearing for August 8, 2005 and asked what the purpose of the public hearing would be if there 327 has been no public input. She agreed that the EDC meeting and workshop is long overdue noting 328 that they are mentioning $125,000 versus $250,000. She stated that she likes SYSCO too and 329 clarified that she is not trying to say anything against the pay as you go option noting that at least 330 it is not being taken from the $1 million. She expressed concerns stating that they don’t have a 331 referendum yet to know how it would be paid and referenced the issues with Medtronic. She 332 referenced the Rice Creek Watershed stating that she does not have this included on the agenda 333 for Wednesday night and there are things that they should review. She stated that they prefer to 334 mitigate on site noting that there are things that they haven’t had input on and if the EDA is 335 planning to do a public hearing usually they would wait for the information that would help them 336 in making a decision. 337 Mounds View EDA July 25, 2005 Regular Meeting Page 9 338 Commissioner Thomas clarified that whenever they do a public hearing they always start with a 339 base document and frequently amend it as they work through the document. She explained that 340 the EDA should have something for the discussion to determine agreement or disagreement. She 341 stated that this is common practice for all public hearings and it then gives the public something 342 to discuss. She stated that they need the base document to start with. 343 344 Vice President Stigney asked if this would be by resolution or ordinance. 345 346 Director Ericson stated that this would be by resolution and it would only need one public 347 hearing 348 349 Vice President Stigney stated that this is premature at this point. 350 351 Commissioner Flaherty agreed stating that he would prefer to meet with the EDC first. He stated 352 that he has asked for indulgence on the timetable adding that he does understand the time 353 constraints on the construction. He stated that he feels they should do what they need to do first. 354 355 MOTION/SECOND Gunn/Thomas To Approve and Set a Public Hearing for August 8, 2005 356 for the discussion of the proposed business subsidy for the SYSCO Minnesota Expansion 357 Project. 358 359 Ayes-3 Nay-2 (Stigney, Flaherty) Motion carried. 360 361 8. REPORTS 362 363 None. 364 365 9. NEXT EDA MEETING: Monday, August 8, 2005 at 6:30 p.m. 366 367 10. ADJOURNMENT 368 369 President Marty adjourned the meeting at 7:14 p.m. 370 371 Respectfully submitted, 372 373 Recorded and transcribed by: 374 Bonnie Sullivan 375 TimeSaver Off Site Secretarial, Inc. 376 PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 September 12, 2005 6 Mounds View City Hall 7 2401 Highway 10, Mounds View, MN 55112 8 6:32 P.M. 9 10 11 1. CALL MEETING TO ORDER 12 13 2. ROLL CALL: President Marty, Vice-President Stigney, Commissioner Gunn, 14 Commissioner Flaherty, and Commissioner Thomas. 15 16 NOT PRESENT: None. 17 18 3. APPROVAL OF AGENDA 19 20 MOTION/SECOND: Flaherty/Gunn. To Approve the September 12, 2005 Agenda as presented. 21 22 Ayes –5 Nays – 0 Motion carried. 23 24 4. PUBLIC INPUT 25 26 None. 27 28 5. APPROVAL OF MINUTES 29 30 The following corrections were requested: 31 32 Page 3, Line 115, should read: “…that the company has submitted a completed TIF…” 33 Page 3, Line 126, should read: “…for the purposes of DEED and…” 34 Page 5, Line 177, should read: “that if the City SYSCO received a one-year TIF…” 35 Page 5, Line 193, should read: “those improvements would costs.” 36 Page 5, Line 202, should read: “…the districts would be re- de-certified the…” 37 Page 5, Line 203, should read: “…He stated that they could would have to go ahead…” 38 Page 7, Line 277, should read: “Commissioner Thomas stated that she is stilling going…” 39 Page 7, Line 289, should read: “afternoon noting that Mr. Seipp explained…” 40 Page 8, Line 297, should read: “…use as a tool to help complement…” 41 42 MOTION/SECOND: Gunn/Stigney. To Approve the August 8, 2005 EDA Minutes as corrected 43 above. 44 45 Mounds View EDA September 12, 2005 Regular Meeting Page 2 Ayes –5 Nays – 0 Motion carried. 46 47 6. CONSENT AGENDA 48 49 None. 50 51 7. EDA BUSINESS 52 53 A. Possible Development of Laport Meadows 54 55 Economic Development Coordinator Bachman explained that in the fall of 2004, the EDA started 56 considering priorities for 2005 and discussed a dozen or so potential projects. One project 57 considered was in the area around Laport Meadows as the potential location for residential 58 projects. At that time, it was not known if developers would be interested but it was put on the 59 EDC 2006 priority list. The City was then approached by two developers who were interested in 60 residential projects and they discussed potentially customized homes and other options. The 61 developer was Rob Carlson Builders from Blaine and the other was Boshey Builders from 62 Roseville. In February, Rob Carlson Builders decided to not pursue it, and a new group of 63 people came forward from Coldwell Bankers. 64 65 Economic Development Coordinator Bachman introduced Wanda Hart of Coldwell Banker 66 Burnett and Cheryl Stinski of Skyline Builders, who have express interested in looking at Laport 67 Meadows to determine if there could be residential development knowing the limitations with 68 wetlands, the nearby park, and collection point (compost site). He advised that they have looked 69 at this project and held discussions with Jeff Switzert who is with an architectural firm and 70 collaborating with them on this project. 71 72 Economic Development Coordinator Bachman advised that in February they started discussing 73 potential ideas relative to this area. At one point, it was discussed with the Council about what 74 next steps should be taken, such as a wetland delineation, survey of residents, and other 75 infrastructure needs. Council consensus was to put it back to the developer to get input from the 76 residents as to their wishes and whether they want to or do not want to sell and what type of 77 development they want. Some of the survey questions pertained to the general public about 78 interest in retaining the compost site and alternatives to that site. The majority of respondents 79 indicated they want that service to continue in Mounds View but some indicated they have the 80 ability to do composting in their yard. He advised that over 60% of the population indicated 81 they’d like that service to continue. The survey didn’t address whether that service could be 82 provided in a different way. Currently, it is a one-acre compost site within a nine acre area. He 83 presented a diagram that identified the location of the compost site, noting it is accessed from the 84 west and south. To the south of the compost site is Laport Meadows. 85 86 Wanda Hart, Coldwell Banker Burnett, stated she first asked about this property when 87 Mounds View EDA September 12, 2005 Regular Meeting Page 3 representing a Mounds View resident and conducting a market analysis. Then she discovered 88 that Mounds View may be interested in developing the area so she approached Cheryl Stinski, 89 who is a developer, to see if she would be interested. Ms. Hart stated they talked to the residents 90 and presented the Council with a copy of those findings. She stated they felt the best way to 91 approach residents was with a letter and then a visit or telephone call. They were able to sit 92 down with a few residents and, for the most part, communication has been over the telephone. 93 So far they have talked to everyone at least once and a few several times. Five property owners 94 favor selling right now, two favor the development but are not interested in selling their home, 95 two answered a definite “no” to the development, and two were not committed. Ms. Hart 96 advised that the two who are in definite favor of selling are David Little and James Lund. Both 97 have indicated an interest in attending a Council meeting to express their support. She explained 98 that Mr. Lund is located south of Laport Meadows and is not part of the initial project but could 99 be if the Council wanted to consider that boundary of the development. Mr. Lund is very 100 interested in selling and will also attend a meeting to voice his support to include his property in 101 the Laport Meadows development. 102 103 Jeff Switzert, Shared Design, stated he has prepared two diagrams that include several schemes. 104 Scheme A has a senior facility in the compost location and beneath that 24 single family units on 105 individual properties. The concept for seniors has two buildings that favor the water areas, just 106 north of the buildings with a turnaround drop off area. The single family area would have an 107 alley to access garages at the back of the house with a pedestrian street going directly out to the 108 wetland area. This will make the wetland accessible to more than just the Laport Meadows 109 residents since it would be a non-vehicular roadway. There would also be several shelters with 110 docks into the wetland to allow people to sun, fish, or bird watch. The park would have a 111 meandering pathway along the buffer treed area on the south perimeter of Highway 10. That 112 would also provide noise abatement and bring pedestrians to a gathering point at the senior 113 housing and terminating in a picnic park at the north end. 114 115 Mr. Switzert presented Scheme B that contained 24 single family homes in a design that 116 incorporates three streets but no alleys. The sites would have a larger back yard and four larger 117 single family homes would be sited to the south of the wetland. The wetland would have a park 118 and meandering pathway. The senior housing would be contained in three buildings in the 119 compost area with an amphitheater and terminating in a picnic area at the far north area. This is 120 a more traditional concept. 121 122 Mr. Switzert then displayed an overlay that depicted existing conditions and how it is effective 123 with their concepts. He noted that the existing conditions work best with Scheme A, which is 124 their favored design. He also noted the location of existing structures and conditions that are not 125 part of the proposed development. 126 127 Commissioner Thomas stated the immediate question that comes to mind from the survey is the 128 owners on Long Lake Road who are not interested in selling and how that would figure in. She 129 Mounds View EDA September 12, 2005 Regular Meeting Page 4 stated this EDA is not interested in property taking so the developer would have to work with the 130 homeowner. 131 132 Mr. Switzert stated they have not yet worked on that issue. 133 134 Commissioner Thomas stated her concern with high density in the top triangle so Scheme A 135 would be more attractive to her since it has lower density. She noted the community wants to 136 maintain a compost site so that concern needs to also be addressed. 137 138 Economic Development Coordinator Bachman stated Ms. Hart has seen a need for additional 139 senior housing as a continuing area of interest. Seniors also support a variety of housing options. 140 He stated he thinks there are possibilities for beneficial amenities beyond the Laport Meadows 141 area. He stated the middle amphitheater is an intriguing amenity. In addition, the City has 142 addressed sound wall concerns with MnDOT, noting there is a gap in the sound wall in this area. 143 He stated it is likely the staff recommendation will be participation, in some terms, with the 144 developers to close that gap. Economic Development Coordinator Bachman stated he hears 145 about that concern from residents to the east who are experiencing 62 to 75 decibels so it would 146 be good to address that issue. 147 148 Commissioner Thomas stated she would be willing to see increased density in the middle areas 149 since there is higher ground in that location. She noted the north area contains a significant 150 wetland area. 151 152 Vice-President Stigney stated the compost site is important to maintain in some location of 153 Mounds View. He noted residents have spoken “loud and clear” over the years that they need 154 that service, noting it involves many bags of leaves because of the great number of trees in 155 Mounds View. He stated he felt the pavilion amphitheater is out of touch with a senior area, and 156 they would be conflicting uses. 157 158 Commissioner Flaherty stated these concepts contain some really good ideas but the EDA’s key 159 is community input because the EDA will not step in to try and persuade residents to sell. He 160 stated that he likes the idea of a dock and fishing hole but the first stumbling block is resident 161 input. 162 163 Commissioner Gunn stated she supports Concept A which is less dense and allows the natural 164 features of the area to still come forward. She stated that perhaps the number of homes can be 165 reduced and stated her support for senior condo housing in which seniors have already expressed 166 an interest. She stated her agreement with Vice-President Stigney that an amphitheater is 167 probably not a compatible use with the senior housing and maybe a gazebo would be a better 168 option. 169 170 President Marty agreed the resident survey conducted by the developer carries a lot of weight 171 Mounds View EDA September 12, 2005 Regular Meeting Page 5 because they are Mounds View citizens. He stated he will not support taking any property 172 through eminent domain or condemnation. Another major hurdle is the need to maintain a 173 compost site because residents have indicated they want and need that service. President Marty 174 noted that Ramsey County was also curious about this and paid for a couple of those questions to 175 clarify that point, and that message from the residents is clear. 176 177 President Marty stated that of the two plans, he prefers Scheme A which contains less pavement. 178 He agreed that perhaps the number of homes should be scaled down. However, a development 179 would only work if all residents agreed. He noted the area to the north is an existing pond so it 180 would be difficult to develop senior housing in that location. He thanked the developers for 181 making this presentation and stated it may work if the residents agree to come on board. 182 However, if the residents choose to not sell, then that is the way it will be and they will have to 183 come up with a different plan. 184 185 Mr. Switzert asked if the current compost site can be vacated if another location in Mounds View 186 can be found. President Marty stated that is a possibility. 187 188 Economic Development Coordinator Bachman stated as with Hidden Hollow, some folks were 189 not willing to sell and the developer worked around those properties. With that project, there 190 was no eminent domain and it ended up with a good development. He advised that some 191 residents have inquired since that time about additional units. He stated with Laport Meadows 192 the project may not be in this form, and may incorporate current residents. 193 194 Cheryl Stinski, Skyline Development, asked for direction from the EDA about contacting the 195 residents. She asked if the City will work with them if a resident does not want to sell or if they 196 should create a development that works around that resident. She stated she thinks that may be 197 problematic and noted that the Hidden Hollow project was not similar to this property, because 198 lots in this area are extremely deep. Ms. Stinski stated some of the roadways may also be 199 problematic. 200 201 President Marty suggested they consider gaining access from the south. 202 203 Mr. Switzert stated he believes a plan can be developed that works on this site and with the 204 residents. He noted that the proposed pedestrian way would be similar to an undeveloped 205 roadway, as currently exists with Laport. He stated he believes it is key to get something of size 206 in the northern area when related to roads and utilities so the ponds can be retained. 207 208 Commissioner Flaherty stated the EDA wants to advise all of the stumbling blocks that may be in 209 the way for this to move forward. He noted the dialog on this project is just starting. 210 211 Ms. Stinski stated they wanted to know if the EDA was positive or negative about these designs. 212 213 Mounds View EDA September 12, 2005 Regular Meeting Page 6 Commissioner Thomas stated that is why she was suggesting a higher density in the middle of 214 the property, to make up for losses in other areas of the site. She stated she is supportive of some 215 kind of mixed housing. 216 217 Vice-President Stigney suggested they look at entering the site from a winding access, which 218 would look very nice and may be an advantage to working around existing houses. 219 220 Ms. Hart stated it would help them if the EDA were to authorize a wetland delineation study. 221 Then the City would own the study and it will help with the land usage of the site. 222 223 President Marty stated this is a rough scheme but farther into the process and if staff can find 224 another location for the compost, the EDA may be willing to consider authorizing the 225 delineation. 226 227 Commissioner Thomas agreed it is a significant expense. 228 229 Economic Development Coordinator Bachman stated that information can be useful regardless if 230 a developer is involved. He noted that with Hidden Hollow, the City participated in a portion of 231 the soil boring work. In addition, it would be a TIF eligible expense. 232 233 President Marty asked how much property the City owns. Mr. Switzert pointed out the parcels 234 controlled by Mounds View. He explained the benefit of a delineation is that it will identify how 235 close they can come towards the wetland boundary. It will identify the useable area. 236 237 City Administrator Ulrich stated this concept does need additional work 238 239 David Jahnke, 8428 Eastwood Road, stated older residents move from Mounds View because 240 they want one-level condo or townhome living. With regard to the amphitheater, he noted the 241 seniors won’t be able to hear it anyway. 242 243 Economic Development Coordinator Bachman stated staff could solicit proposals to find out 244 what the wetland delineation cost would be. 245 246 President Marty agreed, noting at a future date the developer will have additional information on 247 their proposal as well. 248 249 8. REPORTS 250 251 Economic Development Coordinator Bachman stated staff provided the EDA with a draft report 252 Predesign Agreement from DEED pertaining to the $5 million grant for activities related to the 253 County Road J reconstruction project. The grant agreement is between the City and State on how 254 funds are handled and pertains to about $1.6 million. 255 Mounds View EDA September 12, 2005 Regular Meeting Page 7 256 9. NEXT EDA MEETING: Monday, September 26, 2005 at 6:30 p.m. 257 258 10. ADJOURNMENT 259 260 President Marty adjourned the meeting at 7:19 p.m. 261 262 Respectfully submitted, 263 264 265 Recorded and transcribed by: 266 267 Carla Wirth 268 TimeSaver Off Site Secretarial, Inc. 269 270 PROCEEDINGS OF THE MOUNDS VIEW EDA 1 CITY OF MOUNDS VIEW 2 RAMSEY COUNTY, MINNESOTA 3 4 Regular Meeting 5 November 28, 2005 6 New Brighton City Hall 7 803 Old Highway 8, New Brighton, MN 55112 8 6:53 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 City Administrator Ulrich added Agenda Item 8A, An Update Regarding the DEED Funding 21 Agreement for the County Road J Improvement Project. 22 23 MOTION/SECOND: Gunn/Flaherty. To Approve the November 28, 2005 Agenda as revised. 24 25 Ayes – 4 Nays – 0 Motion carried. 26 27 4. PUBLIC INPUT 28 29 None. 30 31 5. APPROVAL OF MINUTES 32 33 MOTION/SECOND: Flaherty/Marty. To Approve the November 14, 2005 Minutes as corrected. 34 35 Ayes – 4 Nays – 0 Motion carried. 36 37 6. CONSENT AGENDA 38 39 None. 40 41 7. EDA BUSINESS 42 43 A. Discuss Possibility of Expanding Medtronic Project to Include Phase Two 44 45 Mounds View EDA November 28, 2005 Regular Meeting Page 2 Community Development Director Ericson explained that staff wants to present information for 46 the EDA’s consideration as a discussion item. He advised that Medtronic may want to accelerate 47 Phase 2 and construct it concurrently with the Phase 1 development. He reviewed that one of the 48 concerns raised through the Medtronic process is that the City may never see Phase 2. However, 49 the growth of Medtronic is such that they are looking at options to provide additional office 50 space and the possibility of doing Phases 1 and 2 together to save some costs. Staff would like to 51 talk about that option and ask if the EDA would like staff to “open that door” and talk with 52 Medtronic about possibly accelerating their phasing. 53 54 Director Ericson advised that today staff received a letter from Medtronic confirming they are 55 looking at accelerating their project and asking the City if it would be interested in negotiating 56 for Phase 2 now and amending the development agreement to do Phases 1 and 2 at the same 57 time. 58 59 Director Ericson stated staff is requesting no action to be taken other than to provide direction to 60 staff if it would like staff to meet with Medtronic. He noted the benefits are obvious in bringing 61 in 380,000 square feet of office space that may have been out another 7 to 8 years. It would also 62 result in 4,400 employees rather than 3,000 employees. 63 64 Commissioner Gunn stated her support for staff to discuss this option with Medtronic. 65 66 Vice President Stigney questioned the form of greater revenues to the City. Director Ericson 67 explained that the City gets a percentage of TIF dollars generated and a share of the increment for 68 administrative fees. In addition to TIF, there would be a greater market value assigned to the 69 project. If Phase 1 is $65 million for the first two buildings, then Phase 2 would be about $96 70 million dollars. Director Ericson noted the impact to the City’s levies, school board levies, and 71 that Medtronic would take a larger percentage of bonds that are market based so taxes to 72 residents and others would be decreased by a consistent amount above and beyond a $65 million 73 project. Director Ericson noted this would also bring the market value back on line to property 74 taxes that much sooner rather than waiting 8-9 years for Phase 2. 75 76 Vice President Stigney asked about the impact to the current $11.8 million cap. Director Ericson 77 explained it is actually a $14.8 million cap and that is completely negotiable. He stated staff is 78 looking at eligible costs for a Phase 2 expansion such as the additional two stories on the Phase 1 79 ramp. Director Ericson explained there may not be a lot of eligible expenses for Phase 2, which 80 makes it more appealing to get on line sooner. 81 82 Vice President Stigney asked about the interest being paid and whether it would go back to them 83 or be waved on this Phase. Director Ericson stated staff will explore that avenue. 84 85 Commissioner Flaherty stated his support to open dialogue, which poses no risk. He pointed out 86 Phase 2 is inevitable, but this is sooner than anticipated. 87 Mounds View EDA November 28, 2005 Regular Meeting Page 3 88 President Marty stated he likes the fact that it will assure Phase 2 is in Mounds View. He noted 89 that the administrative fee from TIF for Phase 1 ranges from $41,000 to $46,000 so this could 90 add $20,000 to $30,000 a year. 91 92 President Marty stated he is concerned that with this much construction, the City’s one full time 93 building inspector may need some help. Director Ericson noted that hiring an additional 94 inspector may provide enough assistance so staff can focus on the Medtronic project. But, if 95 more help is needed, staff can look at that. He explained that Medtronic plans to submit building 96 permits in phases and built sequentially rather than dropping off 1,000 pages of plans at one time. 97 Medtronic will time submissions so it is spread out and staff can review the plans and get to 98 inspections. If additional staff is needed, the permit revenue would support that cost. 99 100 President Marty stated the Phase 1 TIF period was extended from 8 years, by State Statute, to 25 101 years. He asked if Phase 2 is submitted, could it be renegotiated to get closer to the State 102 Statutes. 103 104 Director Ericson explained he is not at a point to talk about negotiated issues but this could be 105 wrapped into the current project and if the EDA wants to consider accelerating payoff, staff could 106 look at less of an administrative fee of the TIF generated and roll the funds back into the payoff 107 so it is paid sooner. He noted the costs are greater to do two standalone TIF districts so maybe 108 Phase 2 could be wrapped into the Phase 1 TIF district that is already authorized. 109 110 President Marty stated the EDA supports directing staff to move forward with discussion. 111 112 City Administrator Ulrich stated staff would like Ehlers to run the numbers, which will incur 113 costs that would be reimbursed by Medtronic. 114 115 President Marty stated his agreement with using Ehlers since they are the most knowledgeable 116 with this project. 117 118 8. REPORTS 119 120 A. An Update Regarding the DEED Funding Agreement for the County Road J 121 Improvement Project 122 123 City Administrator Ulrich reviewed that the EDA has previously granted staff approval to 124 execute agreements for the $5 million grant received from the State for construction of County 125 Road J. At this time an issue has come up that has not yet been resolved and staff wants to bring 126 that issue to the attention of the EDA. 127 128 Mounds View EDA November 28, 2005 Regular Meeting Page 4 City Administrator Ulrich explained that with the right-of-way purchase there is a grant provision 129 that it must be made by the City, which staff thinks is ridiculous because the land is in Anoka 130 County, Ramsey County, Blaine, Shoreview, and Mounds View. Staff’s concern is to not be put 131 into a situation where Mounds View is actually purchasing right-of-way in other cities and 132 counties. Staff is trying to resolve this issue but it may require action by the EDA. 133 134 City Administrator Ulrich advised that staff and the City Attorney are working through the 135 Governor’s office to resolve that issue but it is withholding the County from making the right-of-136 way purchases in a timely manner. 137 138 City Attorney Riggs stated staff has been in discussions with DEED and the Governor’s office 139 about how this can proceed. DEED has been in consultation with the Attorney General’s office 140 that the City needs to be the acquiring agency. Staff is trying to work around that issue and there 141 may be some options that would require modifications to the agreement. If not, staff will return 142 for EDA consideration on this issue. He noted there is $5 million available and is a matter of 143 how to best facilitate that for the five jurisdictions involved. 144 145 President Marty suggested that DEED could funnel or transfer the money to the affected cities. 146 He noted that when Mounds View sold the property, the City got the money and then transferred 147 it to Mn/DOT. He stated he has talked with the Mayor and a Councilmember of Blaine and all 148 along they have been in total support because of the improvements to County Road J and I-35W. 149 President Marty stated his preference if the City could transfer the money to Blaine so they could 150 acquire the property within Blaine. 151 152 City Attorney Riggs explained there are three “pots” of money in play and dollars from DEED, 153 some designated to the County, some to the City, and some to Mn/DOT for right-of-way 154 purchase. He agreed that many agencies are involved and explained that typically the County 155 would be the acquiring agency but two counties involved in this situation. City Attorney Riggs 156 stated staff hopes to work it out so the dollars can be utilized immediately. 157 158 President Marty stated in reading reports on the AUAR from Anoka County, they were also in 159 support. City Attorney Riggs stated that is correct and the issue is finding the correct legal 160 mechanism based on the language in the two statutes that were adopted during the last session. 161 162 City Administrator Ulrich explained that may necessitate the EDA holding a special meeting so 163 bids can be done by December 1st. However, it is not likely that will occur if significant 164 modifications are needed. 165 166 City Attorney Riggs advised that the County wanted to make offers to the property owners by the 167 first of December and notices of condemnation may also be needed. However, if the City is the 168 acquiring agency it would be difficult because the City has not done anything in that regard. 169 170 Mounds View EDA November 28, 2005 Regular Meeting Page 5 President Marty noted a public hearing is already scheduled for December 5, 2005. City 171 Administrator Ulrich stated the EDA could schedule a special meeting on December 6, 2005. 172 173 9. NEXT EDA MEETING: Monday, December 12, 2005 at 6:30 p.m. 174 175 10. ADJOURNMENT 176 177 President Marty adjourned the meeting at 7:15 p.m. 178 179 Respectfully submitted, 180 181 182 Recorded and transcribed by: 183 184 Carla Wirth 185 TimeSaver Off Site Secretarial, Inc. 186 187 Item No: 7A Meeting Date: Dec 12, 2005 Type of Business: Discussion Administrator Review: ____ City of Mounds View Staff Report To: Mounds View Economic Development Authority From: James Ericson, Community Development Director Item Title/Subject: Review Medtronic CRM Project Acceleration Option; Consider Establishing a Public Hearing Introduction: As the Authority will recall, at the last EDA meeting on November 28, 2005, staff presented the Authority with a letter from Medtronic regarding their desire to explore construction of Phase 2 of the Medtronic CRM development concurrent with Phase 1. (Letter attached for your reference.) The Authority directed staff to explore the possibility with Medtronic and to continue using Ehlers and Associates for financial analysis. Ehlers has conducted the analysis and has provided staff with the results of that analysis regarding the financial ramifications of a combined Phase 1 - Phase 2 project. (Financial data attached for your review.) Discussion: Phase 2 of the Medtronic CRM development consists of a third office building of 380,000 square feet plus two additional levels on the Phase 1 parking ramp. The only eligible expense associated with Phase 2 would be the parking ramp expansion. It has been estimated that the cost of the ramp on a per floor basis is about $4,000,000, which means the TIF eligible expenses for Phase 2, if it were to be constructed on its own and supported by a new TIF district, would be limited to $8,000,000. The taxable value added by constructing Phase 2 concurrent with Phase 1 is $30,400,000 for a total project improvement value of $96,000,000. Setting aside the assistance agreement for Phase 1, staff examined the amount of increment that would be generated from Phase 2 and whether it could support the eligible expenses. With Ehlers assistance, it is clear that the additional increment would support the expenses. Using the same assumptions from the original analysis, there appears to be a total of $22 million of available increment for the $96,000,000 project. Regardless of the outstanding qualified costs, the increment provided would be limited to reimbursement of ONLY the structured parking ramp, the cost for which is estimated at $24.0 million, well in excess of the available increment. In return for this consideration, Medtronic would pick up the City's cost to install the utilities to their site (budgeted at $400,000), would cover all the relocation costs for the signs (the previous agreement identified City cost at $550,000) and finally, perhaps most significantly, Medtronic would be responsible for ALL potential sign buy-outs (a potential savings to the City of $1,620,000.) Altogether, the potential financial benefit to Mounds View is $2,570,000, all of which the City would potentially have to pay out relating to this project in its present form. Medtronic would also cover all administrative expenses incurred as a result of processing this request (estimated on the high side to be $150,000.) Medtronic Phase 2 Report December 12, 2005 Page 2 In our opinion and in the opinion of our financial advisor, there is no discernible downside. No additional funds will be expended that will not be reimbursed. No taxes will be lost, no revenues diverted, no additional infrastructure is needed. In fact, the City would gain an anticipated additional 50% in both TIF admin fees and franchise fees above and beyond Phase 1 projections. Mounds View residents and taxpayers will also benefit in that the Medtronic project would shoulder an even greater share of any market based bond referendums or levies (residents approved one for ISD 621 a couple years ago) so all things being equal, taxpayers would pay even less than they otherwise would have. In addition to the potential $2,570,000 in savings the City would immediately realize, instead of a $65 million project coming online in 2033 to significantly boost general fund revenues or significantly reduce taxes, the City will have a $96 million project coming online in 2033 to even more significantly boost general fund revs or more significantly reduce taxes. Recommendation: Based on the above analysis which is supported by documentation prepared by Ehlers and Associates, Staff and your financial advisors support moving forward with a negotiation with Medtronic based on the above terms and conditions. If the EDA supports the possibility of a modification to accommodate Phase 2 construction concurrent with Phase 1, staff recommends adopting the attached resolution which simply requests the City Council to establish a public hearing to consider such a possibility. (The City Council would need to adopt a similar resolution at their meeting.) Because we are planning on canceling the Dec 27, 2005 EDA and Council meeting, the EDA should call for the hearing now to allow for a hearing to be conducted in February. Accordingly, Resolution 05-EDA-211 has been drafted for your consideration. If you should have any questions, please do not hesitate to contact me at 763-717-4021, Kurt Ulrich at 763-717-4001 or Aaron Backman at 763-717-4029. Respectfully submitted, ________________________ James Ericson Community Development Director Attachments: 1. Medtronic Letter, dated 2. Modification Schedule 3. Financial Analysis 4. Resolution 05-EDA-211 SCHEDULE OF EVENTS MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF MOUNDS VIEW RAMSEY COUNTY, MINNESOTA FOR THE PROPOSED MODIFICATION TO THE PROJECT PLAN FOR THE MOUNDS VIEW ECONOMIC DEVELOPMENT PROJECT AND THE PROPOSED MODIFICATION TO TAX INCREMENT FINANCING DISTRICT NO. 5 (a special legislation economic development district) December 12, 2005 EDA requests that the City Council call for a public hearing on the proposed Modification to the Project Plan for the Mounds View Economic Development Project and the proposed modification of Tax Increment Financing District No. 5. December 12, 2005 City Council calls for public hearing on the proposed Modification to the Project Plan for the Mounds View Economic Development Project and the proposed modification of Tax Increment Financing District No. 5. December 22, 2005 Project information (property identification numbers and legal descriptions, detailed project description, maps, but/for statement, and list of sources and uses of funds) for drafting necessary documentation sent to Ehlers & Associates. Ehlers & Associates confirms with the City whether building permits have been issued on the property to be included in TIF District No. 5. January 13, 2006 Fiscal/economic implications received by School Board and County Board (at least 30 days prior to public hearing). [Ehlers & Associates will fax & mail by January 11, 2006.] January 30, 2006 Ehlers & Associates conducts internal review of Modifications. February 1, 2006 Planning Commission reviews Modifications. February 2, 2006 Date of publication of hearing notice and map (at least 10 days but not more than 30 days prior to hearing). [New Brighton Bulletin/Mounds View Bulletin publication deadline, January 26, 2006 – Ehlers & Associates will e-mail notice and map to newspaper by January 26, 2006.] February 13, 2006 EDA considers the Modifications. February 13, 2006 City Council holds public hearing at 7:00 P.M. on a Modification to the Project Plan for the Mounds View Economic Development Project and the modification of Tax Increment Financing District No. 5. [Ehlers & Associates will email Council packet information to the City by February 6, 2006.] ___________ Ehlers & Associates files Modifications with the MN Department of Revenue, Office of the State Auditor, and requests certification of the TIF District with Ramsey County. **Because the City staff believes that the proposed tax increment district will not require unplanned county road improvements, the TIF Plan was not forwarded to the County Board 45 days prior to the public hearing. The County Board, by law, has 45 days to review the plan to determine if any county roads will be impacted by the development. Please be aware that the County Board could claim that tax increment should be used for county roads, even after the public hearing. An action under subdivision 1, paragraph (a), contesting the validity of a determination by an authority under section 469.175, subdivision 3, must be commenced within the later of: (1) 180 days after the municipality’s approval under section 469.175, subdivision 3; or (2) 90 days after the request for certification of the district is filed with the county auditor under section 469.177, subdivision1. City of Mounds ViewMedtronic Qualified Costs Qualified Costs Per Development Agreement Qualified Costs Updated Based Upon Actual Costs To Date & Proposed Costs For Phase IIUsePhaseAmountAmount TIF EligibleUsePhaseAmountAmount TIF EligibleDifferenceLand Acquisition (Blaine)111,000,000$ 2,440,000$ Land Acquisition (Blaine)111,000,000$ -$ -$ Billboard Relocation1260,000$ 260,000$ Billboard Relocation1260,000$ -$ -$ Billboard 2005 payment & Loss of Future Revenue1-$ -$ Billboard 2005 payment & Loss of Future Revenue1670,000$ -$ 670,000$ Park Dedication1-$ -$ Park Dedication1865,000$ -$ 865,000$ Enviornmental1100,000$ 100,000$ Enviornmental1100,000$ -$ -$ Soil Correction11,900,000$ 1,900,000$ Soil Correction11,900,000$ -$ -$ Demolition/Relocation1500,000$ 500,000$ Demolition/Relocation1500,000$ -$ -$ Wetland Mitigation11,500,000$ 1,500,000$ Wetland Mitigation11,500,000$ -$ -$ Utilities - Medtronic1600,000$ 600,000$ Utilities - Medtronic1600,000$ -$ -$ Utilities - City1-$ -$ Utilities - City1400,000$ -$ 400,000$ Parking - Surface Only (3,000 Stalls)13,000,000$ 3,000,000$ Parking - Surface1-$ -$ (3,000,000)$ Landscqping and lighting11,500,000$ 1,500,000$ Landscqping and lighting11,500,000$ -$ -$ Access Road - Coral Sea11,500,000$ 1,500,000$ Access Road - Coral Sea11,500,000$ -$ -$ Fees Associated with Above11,000,000$ 1,000,000$ Fees Associated with Above11,000,000$ -$ -$ City Administrative Fees1500,000$ 500,000$ City Administrative Fees1528,758$ -$ 28,758$ Billboard Relocation2-$ -$ Billboard Relocation2550,000$ -$ 550,000$ Structured Parking2-$ -$ Structured Parking116,000,000$ 14,800,000$ 16,000,000$ Structured Parking2-$ -$ Structured Parking28,000,000$ 7,200,000$ 8,000,000$ City Administrative Fees2-$ -$ City Administrative Fees2150,000$ -$ 150,000$ TOTALN/A23,360,000$ 14,800,000$ TOTALN/A47,023,758$ 22,000,000$ 23,663,758$ -$ 12/7/2005 Exhibit B Medronic Project City of Mounds View Fiscal Disparities Inside the District ("B" election) 3% Inflation 5% P.V. T.I.F. CASH FLOW ASSUMPTIONS District New Redevelopment District County District # Inflation Rate - Every Year: 3.00% Pay-As-You-Go Interest Rate: 5.00% Note Issued Date (Present Value Date): 01-Aug-06 Local Tax Rate - Frozen 122.827% Pay 2006 TNT Fiscal Disparities Election (A - outside or B inside) B Year District was certified Pay 2006 Assumes First Tax Increment For District 2008 Years of Tax Increment 26 Assumes Last Year of Tax Increment 2033 Fiscal Disparities Ratio 39.6705% Pay 2006 TNT adjusted for new construction Fiscal Disparities Metro Wide Tax Rate 121.802% Pay 2006 Local Tax Rate - Current 122.827% Pay 2006 TNT State Wide Property Tax Rate (Used for total taxes) 51.000% Pay 2006 TNT Market Value Tax Rate (used for total taxes) 0.12778% Pay 2006 TNT Commercial Industrial Class Rate 1.5%-2.0% Pay 2006 First 150,000 1.50% Over 150,000 2.00% BASE VALUE INFORMATION Class Rate After Land Building Total Class Original After Conversion Date PID Address Market Value Market Value Market Value Rate Tax Capacity Conversion Tax Capacity Payable 05-30-23-13-0001 Jackson Dr 3,755,744 0 3,755,744 1.5%/2.00% Tax Exempt 1.5%/2.00% 74,365 2006 05-30-23-21-0005 Coral Sea Street 2,819,086 157,800 2,976,886 2.00% Tax Exempt 2.00% 59,538 2006 05-30-23-21-0006 Unassigned 1,037,610 0 1,037,610 2.00% Tax Exempt 2.00% 20,752 2006 05-30-23-24-0059 Jackson Dr 982,716 0 982,716 2.00% Tax Exempt 2.00% 19,654 2006 05-30-23-24-0060 Edgewood Dr 385,505 0 385,505 2.00% Tax Exempt 2.00% 7,710 2006 Totals 8,980,661 157,800 9,138,461 0 182,019 PROJECT INFORMATION Total Market Value Taxes Per Total Market Class New Year Date Phase Use Sq. Ft./Units Sq. Ft./Units Sq. Ft./Units Taxes Value Rate Tax Capacity Constructed Payable 1 Office 0 80.00 $0.00 0 0 1.5%-2.0%0 2005 2007 1 Office 720,000 80.00 $2.88 2,070,103 57,600,000 1.5%-2.0%1,151,250 2006 2008 1 Office 480,000 80.00 $2.88 1,380,936 38,400,000 2.00%768,000 2007 2009 TOTAL 1,200,000 3,451,040 96,000,000 1,919,250 Note: 1. Tax estimates are based upon developer's estimates 2. Project estimated to be 10% completed year 1 and 50% completed year 2 & 100% complet in year 3 based upon developer's estimates TAX CALCULATIONS Total Local Fiscal Local Fiscal State-wide Local Fiscal State-wide Market use Tax Tax Disparities Tax Disparities Property Taxes Disparities Property Value Total Capacity Capacity Tax Capacity Rate Tax Rate Tax Rate Taxes Taxes Taxes Taxes Office Campus 1,919,250 1,157,874 761,376 122.827% 121.802% 51.000% 1,422,182 927,371 978,818 122,669 3,451,040 TOTAL 1,919,250 1,157,874 761,376 1,422,182 927,371 978,818 122,669 3,451,040 Note: 1. Tax estimates are based upon 2005 Tax Rates received from Ramsey County Property Records and Revenue Not Captured by TIF CITY OF MOUNDS VIEW Medronic Project TAX INCREMENT CASH FLOW Base Project Fiscal Captured Semi-Annual State Admin. Semi-Annual Semi-Annual PAYMENT DATE PERIOD BEGINNING Tax Tax Disparities Tax Gross Tax Auditor at Net Tax Present PERIOD ENDING Yrs. Mth. Yr. Capacity Capacity Reduction Capacity Increment 0.36%5.00%Increment Value Yrs. Mth. Yr. 0.0 02-01 2006 0 0 0 0.0 08-01 2006 0.0 08-01 2006 0 0 0 0.0 02-01 2007 0.0 02-01 2007 182,019 182,019 0 Present Value Date - 8-01-07 0.0 08-01 2007 0.0 08-01 2007 182,019 182,019 0 0 0 0 0 0 0 0.0 02-01 2008 0.0 02-01 2008 182,019 1,151,250 384,499 584,732 359,104 (1,293) (17,891) 339,921 323,542 0.5 08-01 2008 0.5 08-01 2008 182,019 1,151,250 384,499 584,732 359,104 (1,293) (17,891) 339,921 639,192 1.0 02-01 2009 1.0 02-01 2009 182,019 1,919,250 689,168 1,048,063 643,652 (2,317) (32,067) 609,268 1,191,159 1.5 08-01 2009 1.5 08-01 2009 182,019 1,919,250 689,168 1,048,063 643,652 (2,317) (32,067) 609,268 1,729,664 2.0 02-01 2010 2.0 02-01 2010 182,019 1,919,250 689,168 1,048,063 643,652 (2,317) (32,067) 609,268 2,255,034 2.5 08-01 2010 2.5 08-01 2010 182,019 1,919,250 689,168 1,048,063 643,652 (2,317) (32,067) 609,268 2,767,590 3.0 02-01 2011 3.0 02-01 2011 182,019 1,976,828 712,010 1,082,799 664,984 (2,394) (33,130) 629,461 3,284,218 3.5 08-01 2011 3.5 08-01 2011 182,019 1,976,828 712,010 1,082,799 664,984 (2,394) (33,130) 629,461 3,788,245 4.0 02-01 2012 4.0 02-01 2012 182,019 2,036,132 735,536 1,118,577 686,957 (2,473) (34,224) 650,260 4,296,227 4.5 08-01 2012 4.5 08-01 2012 182,019 2,036,132 735,536 1,118,577 686,957 (2,473) (34,224) 650,260 4,791,820 5.0 02-01 2013 5.0 02-01 2013 182,019 2,097,216 759,768 1,155,429 709,590 (2,555) (35,352) 671,683 5,291,254 5.5 08-01 2013 5.5 08-01 2013 182,019 2,097,216 759,768 1,155,429 709,590 (2,555) (35,352) 671,683 5,778,507 6.0 02-01 2014 6.0 02-01 2014 182,019 2,160,133 784,728 1,193,386 732,900 (2,638) (36,513) 693,748 6,269,491 6.5 08-01 2014 6.5 08-01 2014 182,019 2,160,133 784,728 1,193,386 732,900 (2,638) (36,513) 693,748 6,748,501 7.0 02-01 2015 7.0 02-01 2015 182,019 2,224,937 810,436 1,232,482 756,910 (2,725) (37,709) 716,476 7,231,137 7.5 08-01 2015 7.5 08-01 2015 182,019 2,224,937 810,436 1,232,482 756,910 (2,725) (37,709) 716,476 7,702,001 8.0 02-01 2016 8.0 02-01 2016 182,019 2,291,685 836,915 1,272,751 781,641 (2,814) (38,941) 739,886 8,176,391 8.5 08-01 2016 8.5 08-01 2016 182,019 2,291,685 836,915 1,272,751 781,641 (2,814) (38,941) 739,886 8,639,210 9.0 02-01 2017 9.0 02-01 2017 182,019 2,360,435 864,189 1,314,227 807,113 (2,906) (40,210) 763,997 9,105,455 9.5 08-01 2017 9.5 08-01 2017 182,019 2,360,435 864,189 1,314,227 807,113 (2,906) (40,210) 763,997 9,560,328 10.0 02-01 2018 10.0 02-01 2018 182,019 2,431,248 892,281 1,356,948 833,350 (3,000) (41,517) 788,832 10,018,533 10.5 08-01 2018 10.5 08-01 2018 182,019 2,431,248 892,281 1,356,948 833,350 (3,000) (41,517) 788,832 10,465,562 11.0 02-01 2019 11.0 02-01 2019 182,019 2,504,186 921,215 1,400,952 860,374 (3,097) (42,864) 814,412 10,915,830 11.5 08-01 2019 11.5 08-01 2019 182,019 2,504,186 921,215 1,400,952 860,374 (3,097) (42,864) 814,412 11,355,117 12.0 02-01 2020 12.0 02-01 2020 182,019 2,579,312 951,018 1,446,275 888,208 (3,198) (44,251) 840,760 11,797,554 12.5 08-01 2020 12.5 08-01 2020 182,019 2,579,312 951,018 1,446,275 888,208 (3,198) (44,251) 840,760 12,229,200 13.0 02-01 2021 13.0 02-01 2021 182,019 2,656,691 981,715 1,492,957 916,877 (3,301) (45,679) 867,897 12,663,910 13.5 08-01 2021 13.5 08-01 2021 182,019 2,656,691 981,715 1,492,957 916,877 (3,301) (45,679) 867,897 13,088,018 14.0 02-01 2022 14.0 02-01 2022 182,019 2,736,392 1,013,332 1,541,041 946,407 (3,407) (47,150) 895,850 13,515,108 14.5 08-01 2022 14.5 08-01 2022 182,019 2,736,392 1,013,332 1,541,041 946,407 (3,407) (47,150) 895,850 13,931,781 15.0 02-01 2023 15.0 02-01 2023 182,019 2,818,483 1,045,899 1,590,565 976,822 (3,517) (48,665) 924,640 14,351,355 15.5 08-01 2023 15.5 08-01 2023 182,019 2,818,483 1,045,899 1,590,565 976,822 (3,517) (48,665) 924,640 14,760,696 16.0 02-01 2024 16.0 02-01 2024 182,019 2,903,038 1,079,442 1,641,577 1,008,150 (3,629) (50,226) 954,294 15,172,861 16.5 08-01 2024 16.5 08-01 2024 182,019 2,903,038 1,079,442 1,641,577 1,008,150 (3,629) (50,226) 954,294 15,574,973 17.0 02-01 2025 17.0 02-01 2025 182,019 2,990,129 1,113,991 1,694,119 1,040,418 (3,746) (51,834) 984,839 15,979,834 17.5 08-01 2025 17.5 08-01 2025 182,019 2,990,129 1,113,991 1,694,119 1,040,418 (3,746) (51,834) 984,839 16,374,821 18.0 02-01 2026 18.0 02-01 2026 182,019 3,079,833 1,149,577 1,748,237 1,073,653 (3,865) (53,489) 1,016,299 16,772,483 18.5 08-01 2026 18.5 08-01 2026 182,019 3,079,833 1,149,577 1,748,237 1,073,653 (3,865) (53,489) 1,016,299 17,160,446 19.0 02-01 2027 19.0 02-01 2027 182,019 3,172,228 1,186,231 1,803,978 1,107,886 (3,988) (55,195) 1,048,703 17,551,015 19.5 08-01 2027 19.5 08-01 2027 182,019 3,172,228 1,186,231 1,803,978 1,107,886 (3,988) (55,195) 1,048,703 17,932,058 20.0 02-01 2028 20.0 02-01 2028 182,019 3,267,395 1,223,984 1,861,392 1,143,146 (4,115) (56,952) 1,082,079 18,315,639 20.5 08-01 2028 20.5 08-01 2028 182,019 3,267,395 1,223,984 1,861,392 1,143,146 (4,115) (56,952) 1,082,079 18,689,864 21.0 02-01 2029 21.0 02-01 2029 182,019 3,365,416 1,262,870 1,920,527 1,179,463 (4,246) (58,761) 1,116,456 19,066,560 21.5 08-01 2029 21.5 08-01 2029 182,019 3,365,416 1,262,870 1,920,527 1,179,463 (4,246) (58,761) 1,116,456 19,434,069 22.0 02-01 2030 22.0 02-01 2030 182,019 3,466,379 1,302,922 1,981,438 1,216,870 (4,381) (60,624) 1,151,865 19,803,986 22.5 08-01 2030 22.5 08-01 2030 182,019 3,466,379 1,302,922 1,981,438 1,216,870 (4,381) (60,624) 1,151,865 20,164,880 23.0 02-01 2031 23.0 02-01 2031 182,019 3,570,370 1,344,176 2,044,175 1,255,400 (4,519) (62,544) 1,188,336 20,528,120 23.5 08-01 2031 23.5 08-01 2031 182,019 3,570,370 1,344,176 2,044,175 1,255,400 (4,519) (62,544) 1,188,336 20,882,501 24.0 02-01 2032 24.0 02-01 2032 182,019 3,677,481 1,386,667 2,108,795 1,295,085 (4,662) (64,521) 1,225,902 21,239,167 24.5 08-01 2032 24.5 08-01 2032 182,019 3,677,481 1,386,667 2,108,795 1,295,085 (4,662) (64,521) 1,225,902 21,587,135 25.0 02-01 2033 25.0 02-01 2033 182,019 3,787,806 1,430,434 2,175,353 1,335,960 (4,809) (66,558) 1,264,593 21,937,329 25.5 08-01 2033 25.5 08-01 2033 182,019 3,787,806 1,430,434 2,175,353 1,335,960 (4,809) (66,558) 1,264,593 22,278,983 26.0 02-01 2034 Totals 47,729,145 (171,825) (2,377,866) 45,179,454 Present Value Date - 8-01-07 23,536,292 (84,731) (1,172,578) 22,278,983 14,869,617 Previous Phase I TIF run NOTES:7,409,366 Difference (Phase II TIF) 1. Inflation has on tax rate has not been calculated. 2. TIF does not capture state wide property taxes, fiscal disparities taxes or market value property taxes Prepared by Ehlers and Associats, Inc. TIF Run 12-07-05 P2006TNT se.xls 12/7/2005 Exhibit B CITY OF MOUNDS VIEW Medronic Project TAX INCREMENT CASH FLOW Base Project Fiscal Captured Semi-Annual State Admin. Semi-Annual Semi-Annual PAYMENT DATE PERIOD BEGINNING Tax Tax Disparities Tax Gross Tax Auditor at Net Tax Present PERIOD ENDING Yrs. Mth. Yr. Capacity Capacity Reduction Capacity Increment 0.36%5.00%Increment Value Yrs. Mth. Yr. 0.0 02-01 2006 0 0 0 0.0 08-01 2006 0.0 08-01 2006 0 0 0 0.0 02-01 2007 0.0 02-01 2007 182,019 182,019 0 Present Value Date - 8-01-07 0.0 08-01 2007 0.0 08-01 2007 182,019 182,019 0 0 0 0 0 0 0 0.0 02-01 2008 0.0 02-01 2008 182,019 1,151,250 384,499 584,732 359,104 (1,293) (17,891) 339,921 323,542 0.5 08-01 2008 0.5 08-01 2008 182,019 1,151,250 384,499 584,732 359,104 (1,293) (17,891) 339,921 639,192 1.0 02-01 2009 1.0 02-01 2009 182,019 1,919,250 689,168 1,048,063 643,652 (2,317) (32,067) 609,268 1,191,159 1.5 08-01 2009 1.5 08-01 2009 182,019 1,919,250 689,168 1,048,063 643,652 (2,317) (32,067) 609,268 1,729,664 2.0 02-01 2010 2.0 02-01 2010 182,019 1,919,250 689,168 1,048,063 643,652 (2,317) (32,067) 609,268 2,255,034 2.5 08-01 2010 2.5 08-01 2010 182,019 1,919,250 689,168 1,048,063 643,652 (2,317) (32,067) 609,268 2,767,590 3.0 02-01 2011 3.0 02-01 2011 182,019 1,976,828 712,010 1,082,799 664,984 (2,394) (33,130) 629,461 3,284,218 3.5 08-01 2011 3.5 08-01 2011 182,019 1,976,828 712,010 1,082,799 664,984 (2,394) (33,130) 629,461 3,788,245 4.0 02-01 2012 4.0 02-01 2012 182,019 2,036,132 735,536 1,118,577 686,957 (2,473) (34,224) 650,260 4,296,227 4.5 08-01 2012 4.5 08-01 2012 182,019 2,036,132 735,536 1,118,577 686,957 (2,473) (34,224) 650,260 4,791,820 5.0 02-01 2013 5.0 02-01 2013 182,019 2,097,216 759,768 1,155,429 709,590 (2,555) (35,352) 671,683 5,291,254 5.5 08-01 2013 5.5 08-01 2013 182,019 2,097,216 759,768 1,155,429 709,590 (2,555) (35,352) 671,683 5,778,507 6.0 02-01 2014 6.0 02-01 2014 182,019 2,160,133 784,728 1,193,386 732,900 (2,638) (36,513) 693,748 6,269,491 6.5 08-01 2014 6.5 08-01 2014 182,019 2,160,133 784,728 1,193,386 732,900 (2,638) (36,513) 693,748 6,748,501 7.0 02-01 2015 7.0 02-01 2015 182,019 2,224,937 810,436 1,232,482 756,910 (2,725) (37,709) 716,476 7,231,137 7.5 08-01 2015 7.5 08-01 2015 182,019 2,224,937 810,436 1,232,482 756,910 (2,725) (37,709) 716,476 7,702,001 8.0 02-01 2016 8.0 02-01 2016 182,019 2,291,685 836,915 1,272,751 781,641 (2,814) (38,941) 739,886 8,176,391 8.5 08-01 2016 8.5 08-01 2016 182,019 2,291,685 836,915 1,272,751 781,641 (2,814) (38,941) 739,886 8,639,210 9.0 02-01 2017 9.0 02-01 2017 182,019 2,360,435 864,189 1,314,227 807,113 (2,906) (40,210) 763,997 9,105,455 9.5 08-01 2017 9.5 08-01 2017 182,019 2,360,435 864,189 1,314,227 807,113 (2,906) (40,210) 763,997 9,560,328 10.0 02-01 2018 10.0 02-01 2018 182,019 2,431,248 892,281 1,356,948 833,350 (3,000) (41,517) 788,832 10,018,533 10.5 08-01 2018 10.5 08-01 2018 182,019 2,431,248 892,281 1,356,948 833,350 (3,000) (41,517) 788,832 10,465,562 11.0 02-01 2019 11.0 02-01 2019 182,019 2,504,186 921,215 1,400,952 860,374 (3,097) (42,864) 814,412 10,915,830 11.5 08-01 2019 11.5 08-01 2019 182,019 2,504,186 921,215 1,400,952 860,374 (3,097) (42,864) 814,412 11,355,117 12.0 02-01 2020 12.0 02-01 2020 182,019 2,579,312 951,018 1,446,275 888,208 (3,198) (44,251) 840,760 11,797,554 12.5 08-01 2020 12.5 08-01 2020 182,019 2,579,312 951,018 1,446,275 888,208 (3,198) (44,251) 840,760 12,229,200 13.0 02-01 2021 13.0 02-01 2021 182,019 2,656,691 981,715 1,492,957 916,877 (3,301) (45,679) 867,897 12,663,910 13.5 08-01 2021 13.5 08-01 2021 182,019 2,656,691 981,715 1,492,957 916,877 (3,301) (45,679) 867,897 13,088,018 14.0 02-01 2022 14.0 02-01 2022 182,019 2,736,392 1,013,332 1,541,041 946,407 (3,407) (47,150) 895,850 13,515,108 14.5 08-01 2022 14.5 08-01 2022 182,019 2,736,392 1,013,332 1,541,041 946,407 (3,407) (47,150) 895,850 13,931,781 15.0 02-01 2023 15.0 02-01 2023 182,019 2,818,483 1,045,899 1,590,565 976,822 (3,517) (48,665) 924,640 14,351,355 15.5 08-01 2023 15.5 08-01 2023 182,019 2,818,483 1,045,899 1,590,565 976,822 (3,517) (48,665) 924,640 14,760,696 16.0 02-01 2024 16.0 02-01 2024 182,019 2,903,038 1,079,442 1,641,577 1,008,150 (3,629) (50,226) 954,294 15,172,861 16.5 08-01 2024 16.5 08-01 2024 182,019 2,903,038 1,079,442 1,641,577 1,008,150 (3,629) (50,226) 954,294 15,574,973 17.0 02-01 2025 17.0 02-01 2025 182,019 2,990,129 1,113,991 1,694,119 1,040,418 (3,746) (51,834) 984,839 15,979,834 17.5 08-01 2025 17.5 08-01 2025 182,019 2,990,129 1,113,991 1,694,119 1,040,418 (3,746) (51,834) 984,839 16,374,821 18.0 02-01 2026 18.0 02-01 2026 182,019 3,079,833 1,149,577 1,748,237 1,073,653 (3,865) (53,489) 1,016,299 16,772,483 18.5 08-01 2026 18.5 08-01 2026 182,019 3,079,833 1,149,577 1,748,237 1,073,653 (3,865) (53,489) 1,016,299 17,160,446 19.0 02-01 2027 19.0 02-01 2027 182,019 3,172,228 1,186,231 1,803,978 1,107,886 (3,988) (55,195) 1,048,703 17,551,015 19.5 08-01 2027 19.5 08-01 2027 182,019 3,172,228 1,186,231 1,803,978 1,107,886 (3,988) (55,195) 1,048,703 17,932,058 20.0 02-01 2028 20.0 02-01 2028 182,019 3,267,395 1,223,984 1,861,392 1,143,146 (4,115) (56,952) 1,082,079 18,315,639 20.5 08-01 2028 20.5 08-01 2028 182,019 3,267,395 1,223,984 1,861,392 1,143,146 (4,115) (56,952) 1,082,079 18,689,864 21.0 02-01 2029 21.0 02-01 2029 182,019 3,365,416 1,262,870 1,920,527 1,179,463 (4,246) (58,761) 1,116,456 19,066,560 21.5 08-01 2029 21.5 08-01 2029 182,019 3,365,416 1,262,870 1,920,527 1,179,463 (4,246) (58,761) 1,116,456 19,434,069 22.0 02-01 2030 22.0 02-01 2030 182,019 3,466,379 1,302,922 1,981,438 1,216,870 (4,381) (60,624) 1,151,865 19,803,986 22.5 08-01 2030 22.5 08-01 2030 182,019 3,466,379 1,302,922 1,981,438 1,216,870 (4,381) (60,624) 1,151,865 20,164,880 23.0 02-01 2031 23.0 02-01 2031 182,019 3,570,370 1,344,176 2,044,175 1,255,400 (4,519) (62,544) 1,188,336 20,528,120 23.5 08-01 2031 23.5 08-01 2031 182,019 3,570,370 1,344,176 2,044,175 1,255,400 (4,519) (62,544) 1,188,336 20,882,501 24.0 02-01 2032 24.0 02-01 2032 182,019 3,677,481 1,386,667 2,108,795 1,295,085 (4,662) (64,521) 1,225,902 21,239,167 24.5 08-01 2032 24.5 08-01 2032 182,019 3,677,481 1,386,667 2,108,795 1,295,085 (4,662) (64,521) 1,225,902 21,587,135 25.0 02-01 2033 25.0 02-01 2033 182,019 3,787,806 1,430,434 2,175,353 1,335,960 (4,809) (66,558) 1,264,593 21,937,329 25.5 08-01 2033 25.5 08-01 2033 182,019 3,787,806 1,430,434 2,175,353 1,335,960 (4,809) (66,558) 1,264,593 22,278,983 26.0 02-01 2034 Totals 47,729,145 (171,825) (2,377,866) 45,179,454 Present Value Date - 8-01-07 23,536,292 (84,731) (1,172,578) 22,278,983 14,869,617 Previous Phase I TIF run NOTES:7,409,366 Difference (Phase II TIF) 1. Inflation has on tax rate has not been calculated. 2. TIF does not capture state wide property taxes, fiscal disparities taxes or market value property taxes Prepared by Ehlers and Associats, Inc. TIF Run 12-07-05 P2006TNT se.xls MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 05-EDA-211 RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF MOUNDS VIEW CALL FOR A PUBLIC HEARING ON THE PROPOSED ADOPTION OF A MODIFICATION TO THE PROJECT PLAN FOR THE MOUNDS VIEW ECONOMIC DEVELOPMENT PROJECT AND THE PROPOSED MODIFICATION TO THE TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 5. BE IT RESOLVED, by the Board of Commissioners ("Board") of the Mounds View Economic Development Authority ("EDA") as follows: WHEREAS, the City Council ("Council") of the City of Mounds View, Minnesota ("City") established the Mounds View Economic Development Project pursuant to Minnesota Statutes, Sections 469.174 to 469.1799, inclusive, as amended, in an effort to encourage the development and redevelopment of certain designated areas within the City; and WHEREAS, the EDA is proposing a modification to the Project Plan for the Mounds View Economic Development Project and a modification to the Tax Increment Financing Plan for Tax Increment Financing District No. 5, all pursuant to, and in accordance with, Minnesota Statutes, Sections 469.174 to 469.1799 and Sections 469.090 to 469.1082, inclusive, as amended; NOW, THEREFORE BE IT RESOLVED by the Board as follows: 1. The EDA hereby requests that the Council call for a public hearing on February 13, 2006 to consider the proposed adoption of a modification to the Project Plan for the Mounds View Economic Development Project and the proposed modification of the Tax Increment Financing Plan for Tax Increment Financing District No. 5, a special legislation economic development tax increment financing district, (collectively the "Modifications") and cause notice of said public hearing to be given as required by law. 2. The EDA directs the Executive Director to transmit copies of the Modifications to the Planning Commission of the City and requests the Planning Commission's written opinion indicating whether the proposed Modifications are in accordance with the Comprehensive Plan of the City, prior to the date of the public hearing. 3. The Executive Director of the EDA is hereby directed to submit a copy of the Modifications to the Council for its approval. 4. The EDA directs the Executive Director to transmit the Modifications to Ramsey County and Mounds View School District No. 621, in which TIF District No. 5 is located in, not later than January 13, 2006. EDA Resolution 05-EDA-211 Page 2 5. Staff and consultants are authorized and directed to take all steps necessary to prepare the Modifications and related documents and to undertake other actions necessary to bring the Modifications before the Council. Approved by the Board on December 12, 2005. __________________________________ Rob Marty, President ATTEST: _____________________________________ Kurt Ulrich, Executive Director