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Member MacLennan asked if those properties would be more attractive to developers if there was <br />sewer and water already available. He asked the possibility of a developer going in on that <br />investment with the City. <br />Mr. Kuker replied that if lot five had sewer and water it would be much more attractive and open <br />to many more uses. He stated that typically roads are funding through assessment or franchise <br />fees. <br /> <br />Member Johnson commented that it seems that investing these funds today would provide benefit <br />in the future as additional tax dollars would be generated through development. <br />Mr. Kuker commented that PSD is on the third year of the blue building. He stated that the taxes <br />for just the lot were $6,000 per year, whereas with the blue building his taxes are now $141,000 a <br />year. <br />Member Johnson stated that it seems economically beneficial to have these properties developed <br />and that the City could recoup the road and utility costs through those development benefits. <br />Deputy City Administrator Gladhill commented that the EDA is not here to solve the whole project <br />proforma. He asked if TIF, HRA and/or EDA dollars could be a part of this process and the <br />negotiations. <br />Member MacLennan commented that he does agree that this would be the job of the City to lead <br />the project and the funds should be used. <br />Chairperson Steffen confirmed the consensus of the EDA in support of that. <br />Economic Development Manager Sullivan moved to the next question within the staff report as to <br />whether the EDA would like to be proactive in acquiring some of the parcels that have caused a <br />lot of time from code enforcement issues or whether the EDA would prefer to let the market drive <br />the change of ownership. <br /> <br />Deputy City Administrator Gladhill commented that he did not have an exact dollar amount, but <br />staff has spent more staff time on code enforcement and abatement on those two properties than <br />any other commercial/industrial properties in the community. He stated that at some point the <br />amount of staff time invested in code enforcement for these properties will exceed the value of the <br />properties. <br /> <br />Member Cords commented that he does not like the idea of buying more property but if the sites <br />are that problematic and given the discussion to clean up that area to make it more attractive to <br />developers, it could make sense to look into it. <br /> <br />Member MacLennan agreed that it might make sense to look into that option, but once the road is <br />reconstructed and utilities are available, a developer might be interested in one of those properties. <br /> <br />Economic Development Authority/ May 13, 2021 <br />Page 6 of 11 <br /> <br />