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4. EDA BUSINESS 4.01: Guest Speaker — Don Haller, Connexus Energy Management Analyst Brama introduced Mr. Brian Burandt from Connexus Energy. Mr. Burandt presented a diagram showing the Connexus Energy service area and stated he has met with several cities in the territory to discuss available land for a data center and the best place in Anoka County is the former municipal center in terms of land, available fiber, and electrical capabilities. He advised that the planned upgrade of the Crooked Lake to Enterprise Park transmission line will upgrade this line from 69,000 volts to 150,000 volts and will easily serve a data center on this site. He discussed rates, rebates, and reliable electric service and stated that Connexus Energy will provide a discounted rate with a five -year guaranteed discount for the site similar to the discounted rate provided to Vision -Ease. He indicated that rebates are also available including Shovel Ready rebates where Connexus Energy would cover the application expense of $3,000 payable to DEED in order to have the site certified as Shovel Ready. He reviewed the SAIDI electrical interruption index and stated Connexus Energy customers experience far shorter interruptions on average than other utilities across the country, which is important to a data center. He stated that data centers are one of the most highly requested sites and Connexus Energy is excited about this opportunity to partner with the City. 4.02: 15153 Nowthen Blvd, Old City Hall Site, Consider Future Development Management Analyst Brama explained this site includes three parcels owned by the City and is worth approximately $1.5 million, is zoned quasi - public, and is surrounded by residential properties. He indicated that at its last meeting, the EDA directed staff to research options for the site and this research was conducted by Mr. Mike Mulrooney. Mr. Mulrooney stated that this site is 20.86 acres, which could accommodate a data center of approximately 250,000 square feet either as a single story facility or multiple buildings. He stated that a data center would provide a significant positive impact to the local tax base and most data centers have an average estimated market value of $120 per square foot or $30 million in the case of a 250,000 square foot facility. He advised that the commercial /industrial property tax impact from this would be approximately $1.19 million annually with the City's share being $268,000; conversely, a residential housing development with 60 -80 homes on the site would have an approximate $15 -20 million market value with tax revenue of approximately $150,000- $200,000 annually with the City's share being $35,000- $50,000. He encouraged the City to also consider the costs associated with serving a residential development versus a commercial /industrial property, e.g., public safety costs. Management . Analyst Brama pointed out that things can change and a 250,000 square foot facility is not guaranteed but represents an estimation of what could happen at full capacity on this site. He also pointed out that a data center is not a high job producer and data center sites are frequently classified as storage units instead of commercial businesses. He stated that funding packages for data centers available in the City include SBA loans, tax abatements, subsidized Economic Development Authority /October 11, 2012 Page 2 of 6