Agenda - Economic Development Authority - 12/08/2011

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potentially assist the owner if the project was along 167th, but not from behind the building. As a response I did suggest another alternative option (See attached site map). In exchange for the owner putting in the fire suppression system and his connection to the City's water main, the City could consider extending and paying for the water main 300 feet on the south side of 167th Avenue ($61,000) and paying for about two-thirds of the trunk/lateral fees ($37,000). Under this scenario Mr. Buttenhoff would be responsible for about $22,000 in fees. The owner indicated that he would not agree to the revised proposal if he had to pay any of the connection fees, and that he would either install a fire suppression system using a 18,000 gallon tank system or he would appeal for an extension of the Interim Use Permit. Mr. Buttenhoff is still evaluating the costs associated with a tank system. On November 3rd the Planning Commission recommended approval of a nine -month extension of the IUP pertaining to Hope Fellowship. Subsequently on November 22, 2011 the City Council approved the nine -month extension of the IUP. Both the building owner and the tenant were present at the City Council meeting. Mr. Buttenhoff indicated to me before and after the meeting that he would be installing the fire suppression system using the tank system. F. Status of Data Center Company On October 24th I participated in a follow-up meeting with a representative of a data center company from Iowa that is interested in expanding to the City of Ramsey. During the summer I showed the representative four possible locations for a DC in Ramsey. The current location that the representative likes the best is the old municipal center campus. There are several advantages with the 20 acre site, including a major Connexus substation located adjacent to the property. The company is considering nine locations nationwide to place two new DCs with an estimated investment of $10 to $20+ million. The other locations are in Illinois, Virginia, Idaho, etc. The company is currently building a facility in Duluth. The representative of the data center company visited Ramsey on 11/22/11 and had an initial meeting with Connexus Energy. According to Duane Arens, the meeting was positive. G. Lease & Fire Suppression System for 6701 Hwy 10 In July of 2011, the United Methodist Church of Anoka approached myself regarding leasing the western portion of the office space at 6701 Hwy 10, a city -owned property. The Anoka church is interested in creating a new satellite church called Northern Light Church. After the church provided a letter of intent to lease the office area, I began negotiations regarding the 4,800 sq. ft. of space (Youth First is on the east side of the building). Since there is a change of use of the property that entails assembly activities, the city's building code requires the installation of a fire suppression system. This proposed project would provide fire safety for both sides of the office area, but does not cover the cold storage area of the building. In addition to the proposed fire suppression system, the project entails the installation of a six inch water main alongside the east side and into the building. Adding the cost of the sprinkler system with the water main option, the total project cost to the City was assumed to be