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Motion carried. Voting Yes: Chairperson Riley, Members Gromberg, Steffen, Kiefer, <br />Leq'ourneau, and Strommen. Voting No: None. Absent: Member Elvig. <br /> <br />EDA BUSINESS <br /> <br />Case #1: Potential Business Development <br /> <br />Economic Development/TIF Specialist Sullivan reviewed with the EDA that staff has identified <br />a viable candidate to develop the Hanson property. The selection process should take into <br />account diversity, tax impacts, job creation, growth potential and other factors. Staff has been <br />negotiating with the prospective business, but it is important to have input from the EDA. He <br />explained staff has received inquiries from other businesses in the size range of 5,000 to 6,000 <br />square feet, while a minimum size of 10,000 square feet was the preference of staff. The <br />potential business being brought forward is a precision machine shop that will start at 10,000 <br />square feet and would like to grov~ to 18,000 square feet. The estimated market value of this <br />project .is $510,000 with estimated property taxes generated of $17;000. The business currently <br />has four employees and is planning on doubling that size in the next year. The business would <br />be relocating from the city of Oak Grove. He advised staff recommends approving the precision <br />machine shop business and to complete negotiations. <br /> <br />Member Gromberg inquired about the current value of the Bakestarbuilding. Economic <br />Development/TIF Specialist Sullivan replied the current assessed value is a little over $200,000. <br />This business would double the value and quadruple the employees of the Bakestar building. <br /> <br />Member Gromberg asked when building would begin. Economic Development/TIF Specialist <br />Sullivan replied construction would begin in spring. If staff approves of the elevations that will <br />be presented in a meeting this morning, a site plan will be submitted. The demolition of the <br />current building has been coordinated with and there should not be'any issues. <br /> <br />Chairperson Riley asked what is being' requested from the City. Economic Development/TIF <br />Specialist Sullivan replied the City would pay $50,000 in TIF on the $100,000 for the land. The <br />funds would be paid back by 2012. <br /> <br />Chairperson Riley commented this appears to be the type of business the EDA is looking for. He <br />inquired if it would work in the future to put smaller projects together that are in the 2,500 square <br />foot size range to equal the 10,000 square foot size. Economic Development/TIF Specialist <br />Sullivan replied that may be possible. However, usually businesses that small would rent from a <br />multi-tenant building. The other thing to consider is that a small project will not generate much <br />in taxes, and it would be necessary to weigh out the City assistance in a project like that. <br /> <br />Motion by Member Gromberg, seconded by'Member Kiefer, to approve the precision'machine <br />shop project and aUthorize staff to complete negotiations. <br /> <br />Economic Development Authority/February 16, 2005 <br /> Page 2 of 9 <br /> <br />2 <br /> <br /> <br />