Laserfiche WebLink
Management Analyst Brama presented options available for consideration and indicated staff <br />recommends the City move forward with pursuing a Data Center user(s). He noted this option <br />provides a solution to finance the City's new fire station and the only foreseeable drawback is a <br />potential negative reaction from the public relative to land use planning. To address the <br />unknown variable of public feedback, Staff recommends an open house to complete the land use <br />analysis. <br />Councilmember Elvig stated this is good information, as is staff's recommendation for two <br />buildings since it would be more marketable. However, he has a problem with starting the <br />conversation saying the City will have to give away the land. He preferred to start a bidding war <br />for this property so the City's funds can be recovered. Councilmember Elvig noted an appraisal <br />may work against the City but for a data center, this is a prime location in this quadrant of Anoka <br />County and he thinks there will be competition. He challenged staff to develop that type of <br />strategy and formula. <br />City Administrator Ulrich stated for a public presentation that is a good portrayal, as having <br />market value at $1.3 million. But even with zero proceeds, staffs analysis demonstrated that due <br />to annual tax, the payback term is relatively short at five to six years. However, it would not pay <br />to construct a Fire Station. He concurred the City should not start negotiations by indicating the <br />City is willing to give away the land. <br />Councilmember Tossey stated he has heard a lot of "what ifs" and is not prepared to take a <br />position that this will be the greatest location for a data center in Anoka County so the City will <br />give the land. He stated support for Concept 3, thinking it is the only sure way the City will get <br />money for the property. He felt there were too many unknowns with Concepts 1 and 2 and he <br />would not feel comfortable with those risks unless there was a buyer in hand. <br />Development Services Manager Gladhill stated to give the broadest options, the property could <br />be rezoned R -1 with an overlay zoning district for a data center in case the right user presents <br />itself. Then a data center would know of that opportunity but it would give the City the greatest <br />flexibility. <br />Councilmember Kuzma asked what the position of Connexus Energy is. <br />Management Analyst Brama stated Connexus Energy has been approached by prospects about <br />this site, so they became interested since data centers are high users of energy. He stated his <br />understanding that Connexus Energy conducted an analysis of this site and paid a $3,000 fee to <br />the State of Minnesota to get this site certified. Management Analyst Brama stated the City is <br />not locked into a data center development should something else come forward but consideration <br />is whether to give direction to staff to market the site. <br />Councilmember Elvig stated in marketing sometimes a focused "laser shot" can be the most <br />effective approach and he likes what Councilmember Tossey said about being more market - <br />sensitive and letting the whole market drive the use. He noted the City is out of industrial park <br />sites and an overlay district would act in that way for light industrial and allow staff to market <br />the site while still having it zoned residential to keep the market value higher. <br />City Council Work Session / March 12, 2013 <br />Page 3 of 5 <br />