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<br />MEDTRONIC DEVELOPMENT PROPOSAL
<br />AND TERMS OF AMENDED CONTRACT
<br />FOR PRIVATE DEVELOPMENT
<br />
<br />January 17,2006
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<br />Following are the proposed terms to the modification/amendment to the contract for private
<br />redevelopment by and between the City of Mounds View and Medtronic:
<br />
<br />I. Medtronic will construct 1.2 million square feet in Phase I (previous Phase I of 820,000 plus
<br />previous Phase II of380,000 sq/ft).
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<br />2. The amended Phase I will include the construction of structured parking (4,200 stalls) at a
<br />cost of $24 million ($16 million for phase I and $8 million for phase II).
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<br />3. Construction w-~!:tC9~enpe;jI\.;20Q6 with 6Q% oft!lede"~lqpmrnt~e~hg completed by
<br />January 2, 2007!(nd1'9lQ% 9ftl\~,~evelopmentcompletedby January'2.,-'20Q8.
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<br />4. Minimum Asse~smerit;~gree'ti).entwill sta,te a value of $57.6 milliol(by January 2,2007 for
<br />pay 2008 taxfs,and aj-v,alue Ql $~(j.lnilli(Jnby Januroy2, 2008 foi;;pily 2009 taxes (based
<br />upon $80 sq/~,:.,LaIi:gu.;lge 'o/jlhb~-lldded that the value of the projept inflates at a 3% rate
<br />beginning in2Q'P9 fo~;payabl&;iiQ']9- to be ~oirsistenfwjth the TIF,t;:ote and proposed cash
<br />flow.-- .. - ,'. . . '. . ','./.'
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<br />5. Medtronic wilLbe r~sp~msi~l~ tdil;Qnstruct the utilities to the sitetfult was previously the
<br />City's responsibility (~tin{~ted at $400,000), The City will publicly l{id their portion ofthe
<br />utilities and lY1edtr()riicwill:f.i~imbi.jrses thco'City Jbr,tb,e costs (the Gity will use their best
<br />efforts to time;<i()!i&tmction~~jtheirportion oftlWutilities with Medtr()nic's internal utilities
<br />to take advant~ge'Q$edonoIJii~~ ofs.cale, ..'
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<br />The City will receive a copy of the feasibility study to extend utilities to the site soon. If the
<br />cost greatly exceeds $400,000, Medtronic will receive dollar for dollar, additional TIF for
<br />this expense in the amount above the agreed upon $400,000 (but overall not to exceed an
<br />additional $355,000 - see # 10 below).
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<br />6. Medtronic will pay 100% of cost to relocate all billboards which is estimated to be $810,000
<br />(previous agreement City portion was $550,000 and Medtronic portion was $260,000. for
<br />total of $81 0,000).
<br />
<br />7. Medtronic will be required to reimburse the City for administrative costs to complete this
<br />amended agreement (estimated on the high side at $150,000).'
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