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CONFIDENTIAL ATTORNEY/CLIENT PRIVILEGED COMMUNICATION - NOT TO BE DISCLOSED Kurt Ulrich - Executive Director Economic DevelopmentAuthority June 10, 200S Page 3 document was recorded on March 29, 1989 and restricted the City from using the land for anything other than a public purpose or open space. In order to sell the land to Medtronic, the City sought passage of special legislation, which would allow the City to. sell the land to Medtronic and have clear title. The legislation was approved as part of the Public Finance Bill (Chapter 152, Article 2, Section 27) and authorizes the conveyance of the land after payment of $1 million from the City to MNDOT for deposit in its Trunk Highway Fund (Medtronic has agreed to reimburse the City for this expense). The legislation requires the City to enter into a development agreement for the property by January 1, 2007. 2. AcquisitionIPark Dedication Fees a. The Bridges Golf Course. The City will be required to transfer title of the land comprising The Bridges Golf Course to the EDA for subsequent sale and conveyance to Medtronic Inc. via a quitclaim deed. The City will be required to undertake and complete the creation of an ordinance to complete this transfer in accordance with the City Charter. The proposed purchase price for the 72.2 acre site totals $9,650,000 ($8,650,000 paid to the City and $1,000,000 paid to the MNDOT for the reverter). The EDA is required to pay any levied or pending special assessments on the property (none are pending or levied). The purchase price will be paid at closing which will occur on or before September 30, 2005. b. Park Dedication Fee. Medtronic will pay the City $865,000 in park dedication fees which is equal to ten (10) percent of the land purchase price from the City/EDA. Park dedication fees will be paid at the time a building permit is pulled for construction. The City will be required to dedicate up to $150,000 of these funds for park improvemeuts on the adjoining land retained by the City (former Sysco property). Improvements could. include trails, pedestrian bridges and small paved parking lot. c. MNDOT Prooertv. Medtronic Inc. will reimburse the City for the $1 million paymeut to the State for the transfer of the former MNDOT property for private development in accordance with the terms of the special legislation. Medtronic will deposit these funds with the City/EDA at the time of closing. d. Blaine Acauisition. The unique dimeusions of the Mounds View 72.2 acre property requires that Medtronic purchase up to five (5) parcels, owned by three (3) different companies/individuals, in Blaine. This is a requirement to accommodate parking for the development, provide access to the site and allow more wetland areas and open space to remain on the Mounds View property. These properties are currently occupied by structures and operating businesses. The estimated acquisition price of these occupied properties at this time, inclusive of business interruption, relocation of personal fIXtures and inventory and cost considerations for the existing owners to lease/purchase/construct new locations is $11 million. SJR-26396Svl MU20S-JO