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funds used on the site. Ace is not requesting any TIF assistance on the purchase. The purchase <br /> price proposed by Ace is $275,000, which equals approximately $50,000 per square foot; this is <br /> well over $3 to $4 per square foot, which is above market for normal industrial properties that <br /> are likely between$2 and $3 per square foot. <br /> Member Elvig clarified the parcel would be redeveloped at an approximate cost to the City of <br /> $125,000, which would come from TIF funds. Economic Development Coordinator Sullivan <br /> responded in the affirmative. He indicated Ace will landscape the site until they are ready to <br /> build. <br /> Mr. Berkopec stated Mr. Sullivan has made Ace aware that they are asking for something the <br /> City does not typically do. Ace thinks they are reasonable in this request because they are not <br /> asking for any direct TIF assistance and will use the site for business expansion. <br /> Member Elvig explained the concern from a City standpoint typically is for a concrete project <br /> with jobs and a tax base. Economic Development Coordinator Sullivan advised the property tax <br /> value on the property would go down with this purchase. <br /> Member Elvig inquired about the anticipated timeframe for Ace to begin a project on this site. <br /> Mr. Berkopec replied Ace will have a lot of information towards the beginning of 2009 of the <br /> direction for the site. <br /> • <br /> Economic Development Consultant Mulrooney noted this purchase would assist a local business <br /> in competing in the future. <br /> Chairperson Riley inquired what would be built on the site with Option 1. Mr. Berkopec replied <br /> there is an established 9,000 square foot building that would be tied into; that building would be <br /> doubled with the expansion. <br /> Member Elvig inquired about Ace's current employment and the anticipated employment with <br /> the expansion. Mr. Berkopec replied Ace currently has 80 employees with an average wage of <br /> $18.40 per hour. Option 1 involving the transfer station will not bring a lot of jobs, but it will <br /> allow the overall business to expand. It is expected within the next couple of years the number <br /> of employees will increase by approximately ten. <br /> Member Schindel stated this is a good situation that the City should capitalize on. The argument <br /> can always be made to find the highest bidder, but Ace will be paying above market value for the <br /> property, and this sale would secure Ace as a partner in the community for some time. Member <br /> Elvig concurred. He commented the EDA is here to make these future decisions and help <br /> businesses position themselves. <br /> Chairperson Riley inquired if Ace is able to commit to developing on the site in the 2009 <br /> timeframe. He explained he approves of this idea and Ace is doing the right thing in lining up <br /> the land;however, this will be a negative tax base move, while the EDA has discussed increasing <br /> tax base in the City as an overriding reason in their decisions. <br /> Economic Development Authority/March 8,2006 <br /> Page 7 of 9 <br />