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the generators did not appear to be a big deal because they are not run often, but his question is <br />whether the Study Group moved in the direction so far that this use is no longer palatable. <br />Councilmember LeTourneau asked if CBRE should be asked for their opinion on whether this <br />would be too restrictive and take the property out of the market. <br />Development Services Manager Gladhill stated that may be an acceptable option, to gain <br />feedback from CBRE, because the City does not want to start the long and involved process for a <br />Comprehensive Plan amendment only to find out that it does not work. <br />Councilmember Riley stated with the one -time land sales, he will not support an $850,000 <br />subsidy of the land as this is the most desirable spot in all of Anoka County. <br />Mayor Strommen asked if the issue of subsidy even needs to be included. <br />Assistant to the City Administrator Brama stated these are ballpark estimations and other cities <br />with large data centers had advertised subsidies to attract data center users. He stated it may be <br />difficult for Ramsey to attract a data center without giving a subsidy because of the additional <br />restrictions that would be placed. He suggested $650,000 may be a more appropriate level of <br />subsidy. <br />City Administrator Ulrich stated the land is worth less as a data center but in return for that, the <br />annual tax base is much greater with a data center than with a residential development. He noted <br />it may be a matter of setting the land price and keeping subsidy out of it. <br />Mayor Strommen stated if a data center will not pay as much for the land as a residential user, <br />she would prefer to lower the land value and not offer a subsidy. She stated if the Council has no <br />appetite for a subsidy, then it should not be included. Mayor Strommen suggested a <br />conversation on what the Council is willing to do to get the expected tax base. <br />Councilmember Kuzma stated CBRE may be helpful in answering the question of what it will <br />take to pull off a data center and achieve the desired tax base. <br />Councilmember LeTourneau asked if it would be appropriate for the EDA to run several scenario <br />discussions on the value of the land and subsidy options in line with the Council's development <br />goals. He stated he wants to elevate the reasons for considering a data center, and that was to <br />create a tax base and not necessarily land value or articulated buildings. <br />Mayor Strommen agreed that is in the EDA's `wheelhouse.' <br />City Administrator Ulrich noted CBRE had set land prices for negotiation and suggested the <br />same occur with this property. He stated there are other ways to approach this than subsidies, <br />such as grants. <br />Development Services Manager Gladhill stated staff would like to separate the issues of the <br />Comprehensive Plan Amendment from the Zoning Ordinance Amendment. <br />City Council Work Session / May 20, 2014 <br />Page 5 of 8 <br />