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Economic Development Coordinator Sullivan stated the City has been actively negotiating with Diamond Graphics to locate a 50,048 square foot facility in the Sunfish Lake Business Park. He stated that Diamond Graphics currently employs 50 people llnd anticipates hiring an additional 12 persons within two years of moving into the facility. He indicated the project is valued between $2.5 and $3 million upon completion, which will generate approximately $50,000 in annual property taxes. He stated that based on the City Council guideline of one job created for every $25,000 of assistance provided, the negotiated TIF assistance package amounts to approximately $300,000, which is the maximum. He added that Diamond Graphics will add to the diversity of the industrial tax base of the community. Member Elvig asked if the TIF assistance package of $300,000 is necessary to complete the sale. Economic Development Consultant Mulrooney replied that Diamond Graphics would not be coming into the City without any incentives. He stated the company currently has facilities in St. Louis Park and Blaine and is looking to move a portion of its facilities from each of these locations, and possibly moving the entire Blaine operation to Ramsey. He indicated the incentive package is very attractive to Diamond Graphics. Chairperson Riley asked if a commitment has been made with respect to the assistance package. Economic Development Consultant Mulrooney stated that everything is subject to EDA and City Council approval, and Diamond Graphics is aware that this approval is required. Economic Development Coordinator Sullivan stated that the property is approximately six acres and includes a significant regional storm water drainage pond, which will be left on the site. He stated that when the City purchased this property from Waste Management in 2001, the City paid $.72 per foot; the proposed sale amounts to $2.25 per square foot. All of the revenues from the sale will go back into this TIF district (District #10), an economic development district which is very restrictive on how its funds are used. He added that Diamond Graphics' site plan is scheduled for consideration at the November 1, 2007, Planning Commission meeting. Member Elvig asked if the drainage pond is included in the total square footage. Economic Development Coordinator Sullivan replied the drainage pond was netted out of the total. He indicated that Diamond Graphics has expressed an interest in designing there landscape plan around the pond and making this an amenity to the property. Member Schindel asked if there are any downsides that should be considered with the proposed sale. Economic Development Coordinator Sullivan stated the only downside would be if a business approached the City to construct a 150,000-175,000 square foot facility on this particular site. He stated that Eniva Corporation previously expressed an interest in the site but has decided to renovate the Cornelius Building located in Anoka. Economic Development Authority/October 18, 2007 Page 4 of9