Agenda - Economic Development Authority - 10/09/2008

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Member Kiefer inquired about the electric utilities charges allocated to the Old Town Hall. Finance Officer Lund indicated that the EDA paid for street lights at one time; that electric bill is still coming in labeled as "EDA Street Lights". Member LeTourneau inquired about the funds allocated to Anoka County Partners and noted the organization is no longer together. Finance Officer Lund indicated that these funds will be moved down to 6510 - Land. She informed the Board that the budget being presented is the proposed budget; the final budget will be presented to the Board in December. Motion by Member LeTourneau, Kiefer, to authorize the City Council to levy $291,705 for the 2009 EDA levy with the budget amended according to the above discussion. . Motion carried. Voting Yes: Chairperson Riley, Members LeTourneau, Kiefer, Skaff, and Steffen. Voting No: None. Absent: Members Elvig and Strommen. Case #2: Consider Sale of Lot 3, Block 1, Sunfish Lake Business Park 3rd Addition Economic' Development Coordinator Sullivan stated that' the City has been actively negotiating with JBT Machining and QDP Technologies to locate a 24,000 square foot manufacturing project in Sunfish Lake Business Park Third Addition. A general concept plan has been ,submitted and it is a good solution to a lot with a poor layout and topography. The two companies collectively employ 14 people and plan to add between 10-12 more at a wage of at least $14.00/hour within two years after moving into their new facility. The estimated project value would be $1,500,000 and the project would be completed no later than December of 2009. The project will generate 'approximately $47,000 annually in property taxes. The proposed business subsidy TIF assistance package is consistent with City Council guidelines that require a minimum of one job created for every $25,000 of assistance provided. Appraisals have been completed in the last year showing a market starting land price of $3.25 to $3.30 per square foot. The EDA discussed the following in relation to TIF assistance for the proposed project: City Council requirements for a land cost write down; possibility of two 5,000 square foot additions in the future; proposed platting of future extension to 144th Avenue as an outlot. . Moved by Member Kiefer, seconded by Member Skaff, to approve the proposed project, to authorize the Economic Development Coordinator to proceed with negotiations on the sale of Lot 3, Block 1, Sunfish Lake Business Park 3rd AdditIon, to draft a development agreement outlining the terms and conditions of the project, and to make that recommendation to the City Council. Further discussion: Member LeTourneau asked whether this project will come back to the EDA once negotiations have been completed or if it will go directly to the City Council. Economic Development Coordinator Sullivan replied this will not be brought back to the EDA before it is Economic Development Authority/ September 4, 2008 Page 3 of8 3