Agenda - Economic Development Authority - 09/04/2008

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In 2003 Anderson Dahlen purchased Outlot A, immediately. to the south of their current facility, for future expansion. The north 3.22 acres of this parcel is necessary for the current expansion and the fees associated with this acreage is what is in question. The City Council has agreed to defer the . development fees for the remainder of the parcel that is not being utilized for the current expansion and those fees will be collected at the time of development. . Economic Development Coordinator Sullivan stated at the June 24th City Council meeting final site plan was approved for the project and direction was given to the EDA to look at considering a reduction. in development fees toward the expansion. This . situation is unique in that the proposed expansion is taking place on only a portion of the Outlot, and that the 4evelopment fees were not paid on it when the property was purchased and the Tax Increment Financing (TIF) district was still active. There are no new connections to the existing Sanitary Sewer, Storm Sewer and Water develoPlTIent fees for Jhe square footage of the building pad. The Storm Water fees are based on the entire lot due to the fact that both the building and land will generate significant run-off. Economic Development Coordinator Sullivan provided an overview of the full fees with no discount (as presented to the City Council and in the plat review letter) and the reduced fees as discussed with the City Engineer. Chairperson Riley questioned how this situation differs from the Panther Precision Machine, Inc. project. Economic Development Coordinator Sullivan explained Panther Precision Machine, Inc. is building a separate building, rather than an expansion to the existing building, and it will be a TIF project. Economic Development Consultant Mulrooney explained this excess property was I].ot underwritten when it was purchased as was the case with other companies. In addition, Anderson Dahlen was fairly understanding about what the total package would be. The City purchased this parcel from Connexus, and at the 11 th hour Connexus determined they would like a substation on the back side of this parcel. Anderson Dahlen was not very interested in a site with a substation located on it, but ultimately decided to.. agree to the deal. The company is a good corporate citizen and a driver of other companies in the area. Chairperson Riley stressed that this is a one time exception due to unique circumstances. Motion by Member Steffen, seconded by Member Skaff, to recommend to City Council to reduce the development fees for the Anderson Dahlen expansion to a total of $25,883.00, and to direct staff to prepare findings of fact to be presented to City Council based on the information presented in the staff summary. - Motion carried. Voting Yes: Chairperson Riley, Members Steffen, Skaff, and Kiefer. Voting No: None. Absent: Members Elvig, Letourneau, and Strommen. Case #4: Staff Update The EDA reviewed the Staff Update. Economic Development Authority/July 10, 2008 Page 5of7 5