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Member Riley agreed that the program should include a mix of businesses. He stated the program should be carried out year -round and should not be discontinued. He suggested including a brief summary of the survey results in the response being sent to local businesses and to include some of the charts provided in the Executive Report with business names removed. It was the consensus of the EDA to continue the Business Retention Program with the understanding that the EDA staff person will carry out these duties once the position is filled. Mr. Mulrooney indicated the Business Retention Program serves as a good foundation for the City and felt it was important for the City to make a conscious effort to visit with its local businesses on an ongoing basis. He suggested that the business expo be used as a job fair for those businesses looking for qualified employees. Chairperson Steffen encouraged staff to continue to provide the EDA with the dates of scheduled business visits and commended Management Analyst Brama for his efforts on this program. 4.04: 15153 Nowthen Blvd: Review Cost Benefit Analysis Management Analyst Brama advised the shovel ready application has been submitted to the State of Minnesota. He stated a number of environmental conditions were identified during the environmental assessment and additional testing may be required. He then presented the Cost Benefit Analysis for a single user data center comprised of 250,000 square feet (Concept 1), a two user data center comprised of 100,000 square feet each (Concept 2) or a residential development comprised of 47 homes (Concept 3). He stated the valuation for Concept 1 is $31.3 million, Concept 2 is $25.3 million, and Concept 3 is $7.6 million; City revenue derived from Concept 1 is estimated at $276,000, Concept 2 is $223,000, and Concept 3 is $33,700. He stated that Concept 3 would require more City services than a data center and it is anticipated that Concept 3 would have more police and fire calls and total annual expenses for Concept 3 are estimated at $2,500. He stated that net annual cash flow after expenses for Concept 1 is estimated to be $276,000, Concept 2 is estimated to be $223,000, and Concept 3 is estimated to be $31,000. He advised that the valuations for Concept 1 and 2 are $1.35 million and Concept 3 has an estimated valuation of $1 million based on the assumption that the housing market is currently weak. He stated the sale of this property can be used for the fire station and indicated the net annual cash flow from financing the fire station for Concept 1 is estimated to be $932,000, Concept 2 is estimated to be $402,000, and Concept 3 would result in a deficit of approximately $911,000. Chairperson Steffen requested further information regarding the open house. Development Services Manager Gladhill advised that the cost benefit analysis would be presented at the open house as well as options for zoning. He noted the proposal is for an overlay district so as not to limit any residential component in the future. He added the open house can be scheduled for Thursday, March 28, 2013, with public hearings held in April. Member Skaff suggested that the open house be held on the old municipal center site. Economic Development Authority/February 14, 2013 Page 4 of 6