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<br />Case #3: <br /> <br />Recommend Sale of Lot 5, Block 4, Gateway North Industrial Park Plat 2 <br /> <br />Economic Development Coordinator Sullivan explained the City has been actively negotiating <br />with Mundt Legal/North Central Satellite to locate a 10-15,000 square foot facility in Gateway <br />North Industrial Park Plat 2. He stated that these two companies are currently together in a <br />building in Coon Rapids and are interested in the Dave Perkins/Eugene Brown site. He indicated <br />the two companies are business partners and currently employ 16 people and anticipate hiring an <br />additional five people within two years of moving into the new facility. He stated the project will <br />be valued between $1.2 and $1.5 million upon completion, and will generate approximately <br />$21,000 in annual property taxes. He indicated that when the TIF assistance package is <br />discussed, the City will adhere to the Council guidelines of one job per $25,000 in assistance. <br />He stated the proposed land cost is $2.94 per square foot and that the site had limitations due to <br />the shape of the site. <br /> <br />Member Schindel asked if the companies would require outside storage on the site. <br /> <br />Economic Development Coordinator Sullivan replied that any storage they require will not be <br />excessive and that Staff would like to see an extension of the building to screen the storage. Any <br />outside storage will be well screened from the highway. <br /> <br />Member Schindel expressed concern about the business relationship between Mundt Legal and <br />North Central Satellite. <br /> <br />Member Kiefer asked if the two companies own or lease their current premises. <br /> <br />Economic Development Coordinator Sullivan replied the two companies are in a multi-tenant <br />building and are leasing their space. <br /> <br />Economic Development Consultant Mulrooney stated the two companies currently have a <br />limited liability company and will be co-owners of the proposed site. <br /> <br />Member Kiefer stated it would appear the two companies are getting a scale of economies by <br />joining forces; theoretically, they aren't paying as much for the property. <br /> <br />Economic Development Consultant Mulrooney stated the property has an abnormal lot <br />configuration and it is difficult to put a standard rectangular building on the site. He noted this <br />site is conducive to outside storage. <br /> <br />Member Elvig stated he was pleased to see a project come forward for this property and felt it <br />represented a significant hnprovement for the area. <br /> <br />Economic Development Coordinator Sullivan stated he has made it clear to Mundt Legal and <br />North Central Satellite that the City expects this property to be significantly improved. <br />Chairperson Riley concurred. <br /> <br />Economic Development Authority/October 18, 2007 <br />Page 6 of9 <br />