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concept is estimated to generate $895,000 in total annual gross taxes and annual cash flow to the City of approximately $116,000. He stated that concept #3 originally included a 200,000 square foot building that was reduced to 110,000 square feet, resulting in estimated total annual gross taxes of $600,000 and annual cash flow to the City of $78,000. He pointed out that all cash flows stated for the City do not include fiscal disparities and the City has historically been a net gainer of fiscal disparities so annual cash flow could be up to 40% greater. Member Riley stated it was important to remember these figures are conservative and do not include fiscal disparities and if these numbers were increased, it would not impact the residential side and that needs to be taken into account. Assistant to the City Administrator Brama stated that if the OMC site included only residential, the City's estimated net cash flow per year is $32,000 and total annual gross taxes generated from the site is estimated at $121,000. He advised that the OMC site is valued at $1.4 million for a data center and $780,000 for residential, less expenses of demolition and cleanup of the site regardless of use. He discussed potential subsidies for both a data center and residential and stated that the potential subsidy for a data center has been estimated at $850,000. Chairperson Steffen commended Messrs. Brama, LaFrance, and Gladhill for their significant efforts on this project. Member Brunt felt that the entire public input process was positive and provided an opportunity for residents to discuss their concerns. He stated he was in favor of a data center development and did not believe the impact to surrounding property owners would be significant. He stated that the majority of the study group felt that the mitigation techniques would resolve their concerns, adding there was a lot of concern about property values and he has not seen any research indicating that a data center near residential properties would impact property values. Member Hardin asked how much information was presented by outside sources to address concerns about the impact of a data center on property values. Assistant to the City Administrator Brama replied that a substantial amount of information was provided, including opinions from real estate agents, appraisers, Anoka County, the City's resource at the League who specializes in land use regulations, as well as the City's preferred broker who provided a summary of input received from other cities on land values. Member Riley stated he attended many of the public input meetings and felt that staff was able to demonstrate that the City could mitigate most of the issues but the City cannot control what happens with land values so this issue stood out as the biggest issue that the City is unable to mitigate. He added there was a lot of intuitive discussion about land values but the bottom line is that the City cannot mitigate that factor. Assistant to the City Administrator Brama stated that some real estate agents are of the opinion that a data center would negatively impact residential values while others feel a data center would have no impact on values and the City took the position that if the site was zoned Quasi Public, the values would not be impacted. Economic Development Authority/May 8, 2014 Page 3 of 6