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TO REPLACE CASE #9 IN YOUR AGENDA <br /> <br />CASE # <br /> <br />PROPOSED DIRECTION FOR AEC ENERGY PARK SITE FOR <br />DIRECT ENCLOSURES DEVELOPMENT AGREEMENT <br /> By: James E. Norman, City Administrator <br /> <br />Background: <br /> <br />AEC Energy Park is nearing development potential completion. There still remains areas <br />for expansion of current projects, however, only one site remains that has yet to receive a <br />commitment. The remaining site has been commonly referred to as the "wetland site" <br />and is identified in the map attached to this case. Staff is currently working with a <br />company from Maple Grove to locate a 15,000 square foot facility, which would be <br />expandable to a total of 30,000 square feet. As part of those discussions, it was <br />determined that site work estimates came to over $250,000. <br /> <br />Staff discussed the matter with the Cit~, Council during a work session held on May 18, <br />1999, and Council directed staff to continue negotiations as to equitably distribute the <br />costs among the separate parties prior to Council consideration of the matter. Staff is <br />happy to report significant progress in the negotiations to reduce the cash-flow deficit in <br />the project. Council will receive a separate confidential document discussing the <br />negotiations with the various parties showing that approximately $150,000 has been <br />removed from the deficit. The City of Anoka has tentatively agreed to pay for one-half <br />of the electrical transmission line location agreement which was executed on May 22, <br />1996. Additionally, if the City agrees to work with the development company to finance <br />construction of the facility, a 30,000 square foot building will be built immediately rather <br />than the originally proposed 15,000 square foot facility. It should be noted that without <br />the assistance of Tax Increment Financing, this project would not be feasible and the City <br />would generate no future tax revenues from the property. <br /> <br />Council Action: <br /> <br />Motion to direct staff to negotiate a development agreement with Direct Enclosures as <br />discussed in this case. <br /> <br />Reviewed by: <br /> <br />City Administrator <br />Community Development Director <br />Economic Development Consultant <br /> <br />CC: 05./25/99 <br /> <br />~M-F$~I/~L~users~Thieling~J~C~UNC~L&~C~TYC~UN~999~ay~DirectEncl~sures.d~c 05/25/99 <br /> <br /> <br />