Minutes - Council Work Session - 11/13/2012

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Councilmember Elvig noted a question had been previously asked about charging administrative fees for RALF properties back to the Metropolitan Council. City Administrator Ulrich stated that discussion occurred during the strategic plan, to look at special legislation to broaden what can be done with RALF proceeds when the properties are leased. City. Attorney Goodrich noted this item is on tonight's Consent Agenda. The Council agreed to next consider Case 2.04 since Mr. Mulrooney was not yet in attendance. 2.04: Consider Development of 15153 Nowthen Boulevard, Old City Hall Site Development Services Manager Gladhill reviewed the staff report. Councilmember Backous asked for more background information on data centers, ownership, and if such a use would be good for Ramsey's businesses. He stated for him it comes down to cost benefit, benefit to Ramsey's residents, and if it will generate tax revenue compared to having homes. Management Analyst Brama explained it would be a private business that typically serves private businesses, but could also serve public entitles, regionally and perhaps nationally. A data center would be a large -sized building with a lot of servers for storage, a higher energy user, and generate a lot of property tax. In addition, a data center would be low operating from a City cost perspective for public services, yet have a high value and tax generation. Aesthetically, data centers resemble buildings in an industrial park. Councilmember Backous felt it would be a good use for this area that is surrounded by homes and may provide the least amount of pushback from residents because it would not generate a lot of traffic. Mayor Ramsey stated a data center will be very noisy. Councilmember Wise suggested presenting the benefits of tax generation and low traffic to the public at the start of the process prior to City and County and Connexus investment. Mayor Ramsey stated data centers generate a lot of noise to cool a huge amount of heat. Councilmember Elvig stated that issue came up at the EDA meeting. He noted this site was slated, at one time, for a potential middle school and he would like staff to look into that again to be sure it is not still an option. Councilmember Elvig agreed that data centers generate a tremendous amount of heat and expressed concern should the City partner with Connexus, become obligated, and then find out the sound is not mitigated as much as the City would like. He stated he has been involved with putting a sound barrier on a data center located near a residential area and it did not work. Councilmember Elvig explained that data centers use diesel City Council Work Session / November 13, 2012 Page 5 of 10