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CITY OF MOUNDS VIEW March 30, 200S Proposed Medtronic Campus in Mounds View DRAFT Summary of Terms and Conditions of the Proposed Sale of Land Comprising The Bridges in the City of Mounds View to Medtronic .:. The City of Mounds View owns 118 acres of land at the junction of State Highway 10 and Interstate 35W (See Map below). The Mounds View Economic Development Authority agrees to sell to Medtronic, the Developer, 72 acres of land currently used as a municipal golf course for $8,650,000. The City would retain 46 acres known as the former Sysco property. .:. The conveyance of the golf course property is subject to covenants and restrictions imposed by a Development Agreement that is being negotiated between the City and Medtronic. These include the submittal and approval of preliminary construction plans, the approval of the Alternative Urban Areawide Review (AUAR), and approval of the City's Comprehensive Plan amendment. .:. The City is seeking approval of the AUAR, an environmental assessment process, for 1,500,000 square feet of office space for a proposed corporate office development. The campus would be used by Medtronic's largest division, Cardiac Rhythm Management (CRM), for expanding its research and development activities. The City expects approval of the AUAR by May of2005. .:. The first phase of the Medtronic campus would involve the construction of approximately 820,000 sq. ft. of office space in several buildings and would entail an investment of $65 million in new buildings in Mounds View. With lab equipment, computers, furnishings, etc., total investment in Mounds View by Medtronic would be over $100 million for Phase I. .:. Medtronic has requested tax increment financing (TlF) assistance for the project. To facilitate the development of Phase I of the campus, the Mounds View EDA is prepared to offer TlF assistance in an amount of 95% of the net increment (This amount represents approximately 34% of the property taxes to be paid by Medtronic). Assumptions include a 26-year TIF district, election "B" for fiscal disparities, and 5.0% for City administration. Legislative action is required to act on Medtronic's request. .:. It is projected that the increment generated during the life of the district would result in developer payments to Medtronic of over $14 million over 25 years (the net present value). This would only partially offset Medtronic's TlF-eligible development costs that are forecast to exceed $25 million. Qualified costs for TlF reimbursement include land acquisition, parking, wetland mitigation, soils correction, and site utilities. .:. The property is currently tax-exempt. This project takes the property from tax exempt to taxable. Ramsey County, the Mounds View School District and the City of Mounds View will receive the taxes from the taxable base value of the property. It is projected that over 25 years this amounts to about $2 million (net present value).