The effort could ultimately result in 1.5 million sf of new development and bring 2,000 jobs to the city.
The company, which has about 6,500 workers in the Twin Cities area, moved into a sprawling world headquarters complex along Interstate 694 in nearby Fridley three years ago. Its proposed expansion would be the largest yet for the Twin Cities' growing medical technology sector.
A top official from the Minnesota Employment and Economic Development Department is serving as the "chief negotiator" in the talks between Medtronic and the city of New Brighton, says Kit Borgman, a spokeswoman for the department. She adds negotiations are going well, and that the "ball is in Medtronic's court."
One concern among government officials is the medical device maker might consider expanding outside the state, although company officials say the Twin Cities are its first choice for expansion. Medtronic officials confirm the company is looking at further expansion "to accommodate our growth," but declined to identify the New Brighton site or discuss specifics.
New Brighton's initial package estimates the cost of acquiring and preparing the site for the expansion at $33 million. Of that, Medtronic would spend about $5 million on site preparation and the city seeking about $7.8 million in state and federal grants to help with road improvements and site cleanup.
The city is proposing to spend about $15 million to acquire the land and make several small site improvements. New Brighton would also spend about $4 million to clean up about 14.3 acres that once served as a landfill. Up to $1 million would be spent on other infrastructure.
New Brighton hopes to pay for the expansion by creating a tax increment financing district for the site. But under the proposal, the city would be able to recoup only about half of its tax increment financing costs, leaving a debt of $8 million to $10 million. Only when the later phases were built would it recoup those funds.
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