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Motion by Member Skaff, seconded by Member Williams, to approve the 2014 preliminary EDA budget and levy as presented. Motion carried. Voting Yes: Chairperson Steffen, Members Skaff, Williams, Brunt, Hardin, and Riley. Voting No: None. Absent: Member LeTourneau. Finance Director Lund reminded the EDA that the 2014 budget is preliminary and the EDA can make changes before final adoption on December 10, 2013. 4.03: Discuss Potential Future Industrial Park Land Assistant to the City Administrator Brama provided historical information regarding the EDA's previous discussions regarding industrial park land available. He stated that property #1 owned by Al Pearson is 90 acres and is a greenfield site with utilities located 1,000' from the site, noting that this site is directly west of the Hageman Holdings site (property #2). He advised that Mr. Pearson is a willing seller and partner, is willing to change the zoning for a future industrial park, and is asking $65,000 per acre or $1.49 per square foot, which staff believes is a fair price. He explained that a Greenfield designation is a general reference term for a site typically used as a farm and a Green Acres designation is a tax designation that holds down the tax rate to incent use of the property for agriculture, and the Pearson property carries both designations. He advised that the Green Acres designation limits the tax incentive tools available and TIF cannot be used if more than 15% of the site is office; however, it does allow use of TIF if 15% or less is office and the remaining use is manufacturing and staff feels that TIF could be used for this site. He indicated the City is currently in the process of determining how utilities get to the site, noting that Hageman Holdings is ultimately responsible for extension of utilities to the end of their site but is not required to put in utilities until they develop the property adding that the preliminary estimate for extending utilities is $500,000- $800,000. He stated the Development Agreement with Hageman Holdings requires full extension of Bunker Lake Boulevard to four lanes down to Puma, which will increase the square footage price. He advised the City will need to get clarification on the Development Agreement with Hageman Holdings to determine whether the Pearson property would trigger any required improvements to Bunker Lake Boulevard. Assistant to the City Administrator Brama then presented information regarding the Hageman Holdings 45 -acre site (property #2) and explained this site was purchased with the intent of constructing the Legacy Christian Academy. He advised that staff will be meeting with Hageman Holdings to confirm details regarding the site, adding that Hageman Holdings has indicated they are not interested in selling anything north of Bunker Lake Boulevard. Development Services Manager Gladhill advised the Development Agreement with Hageman Holdings clearly states that if Hageman Holdings builds anything it would trigger the requirement to bring Bunker Lake Boulevard to full capacity. Assistant to the City Administrator Brama stated that Hageman Holdings has indicated they are going to be selective and is going to want to protect their investment. He stated they are a willing seller and partner, are willing to change the zoning, and utilities are adjacent to the site, but the extension of Bunker Lake Boulevard could increase the price per square foot. He added there is a potential that this site could be used in parallel with the Pearson property. Economic Development Authority /August 8, 2013 Page 3 of 6