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generators with exhaust pipes that are run every day. He raised the option of using this site for <br />density housing since it is across from an elementary school. <br />Mayor Ramsey stated a data center would be a great thing for the City as long as the residents <br />around it buy into that use. He noted it would provide a great tax base and there is fiber optics in <br />that location to utilize. <br />Management Analyst Brama advised that one of the concerns with a data center is the setback, <br />which will need to be greater and have more screening. Staff is also aware of the need to address <br />the issue of sound. He asked if there is general support for this use. <br />Councilmember -Elect and EDA Chair Riley stated the EDA had discussed the data center use, <br />looked into it, and found there had been a lot of sound issues with first generation data centers <br />but since that time, there have been a lot of improvements. Mr. Riley indicated sound is still a <br />real issue to resolve but improvements have been made with data centers to contain more inside <br />and there is now a second- generation design. <br />Don Haller, Connexus Energy, addressed the question raised relating to partnerships by <br />explaining there would be no contracts, just an energy company with the local City saying there <br />is potential for a data center. Mr. Haller stated Connexus has analyzed the electrical grid and <br />determined this is the only site in Anoka County that is conducive for a data center so Connexus <br />approached the City. He explained that data centers have come a long way in technology and the <br />Councilmembers could visit two of the largest ones located in Elk River and the Anoka industrial <br />park to see what it would look like and how much sound it generates. Mr. Haller stated it has <br />been refreshing to work with Ramsey on an opportunity for a data center and discuss mutual <br />benefits for both the City and Connexus. <br />Mayor Ramsey asked what is the anticipated price per foot for this land given the constraints <br />with data centers and surrounding uses. <br />Management Analyst Brama referenced the staff report section containing a breakdown of the <br />per square foot value of a data center. He pointed out that in comparison to a normal business, it <br />would have a higher than normal value. <br />Mayor Ramsey asked what a data center would be willing to pay for this land. <br />Mr. Mulrooney advised that due to the uniqueness of sites that can accommodate data centers, <br />they are willing to pay a higher per foot price than typical businesses. He stated he has seen <br />prices double in south metro (Eden Prairie) locations. However, it can depend on the size of the <br />facility and how well capitalized the user is. Mr. Mulrooney stated if the site works, data centers <br />are usually willing to pay top dollar for the property. <br />Councilmember Tossey mentioned advise that he received that the City often times gets bogged <br />down by saying "no" a lot. He stated support for approaching the citizens to get their buy in and <br />if that happens, he thinks a data center would be an asset for Ramsey. <br />City Council Work. Session / November 13, 2012 <br />Page 6 of 10 <br />