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<br />In 2003 Anderson Dahlen purchased Outlot A, immediately to the south of their current facility, <br />for future expansion. The north 3.22 acres. of this parcel is necessary for the current expansion <br />and the fees associated with this acreage is what is in question. The City Council has agreed to <br />defer the development fees for the remainder of the parcel that is not being utilized for the <br />current expansion and those fees will be collected at the time of development. <br /> <br />Economic Development Coordinator Sullivan stated at the June 24th City Council meeting final <br />site plan was approved for the project and direction was given to the EDA to look at considering <br />a reduction in development fees toward the expansion. This situation is unique in that the <br />proposed expansion is taking place on only a portion of the Outlot, and that the development fees <br />were not paid on it when the property was purchased and the Tax Increment Financing (TIF) <br />district was still active. There are no new connections to the existing Sanitary Sewer, Storm <br />Sewer and Water develoP!l1ent fees for the square footage of the building pad. The Storm Water <br />fees are based on the entire lot due to the fact that both the building and land will generate <br />significant run-off. <br /> <br />Economic Development Coordinator Sullivan provided an overview of the full fees with no <br />discount (as presented to the City Council and in the plat review letter) and the reduced fees as <br />discussed with the City Engineer. <br /> <br />Chairperson Riley questioned how this situation differs from the Panther Precision Machine, Inc. <br />project. Economic Development Coordinator Sullivan explained Panther Precision Machine, Inc. <br />is building a separate building, rather than an expansion to the existing building, and it will be a <br />TIF project. <br /> <br />Economic Development Consultant Mulrooney explained this excess property was l}ot <br />underwritten when it was purchased as was the case with other companies. In addition, Anderson <br />Dahlen was fairly understanding about what the total package would be. The City purchased this <br />parcel from Connexus, and at the 11 th hour Connexus determined they would like a substation on <br />the back side of this parcel. Anderson Dahlen was not very interested in a site with a substation <br />located on it, but ultimately decided to agree to the deal. The company is a good corporate <br />citizen and a driver of other companies in the area. <br /> <br />Chairperson Riley stressed that this is a one time exception due to unique circumstances. <br /> <br />Motion by Member Steffen, seconded by Member Skaff, to recommend to City Council to <br />reduce the development fees for the Anderson Dahlen expansion to a total of $25,883.00, and to <br />direct staff to prepare findings of fact to be presented to City Council based on the information <br />presented in the staff summary. <br /> <br />Motion carried. V oting Yes: Chairperson Riley, Members Steffen, Skaff, and Kiefer. Voting <br />No: None. Absent: Members Elvig, Letourneau, and Strommen. <br /> <br />Case #4: <br /> <br />Staff Update <br /> <br />The EDA reviewed the Staff Update. <br /> <br />Economic Development Authority/July 10,2008 <br />Page 5 of7 <br />