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Member Riley asked if the restaurant portion would be a nonprofit. <br />Economic Development Manager Sullivan commented that level of detail has not yet been <br />conveyed, it has been stated that this is a nonprofit entity. He noted that the mission is to stop <br />human trafficking and the revenue from the restaurant would be used to support that purpose. He <br />stated that if a for profit entity were to come in that would bring in an issues with taxes and <br />therefore, he would be surprised if that portion were transitioned to for profit. <br />Chairperson Steffen asked if this were to be approved, is this the last remaining piece to get this <br />project over the hump. <br />Economic Development Manager Sullivan stated that he cannot answer that, but the developer has <br />indicated that they need this assistance in order to get there. He stated that the project involves a <br />lot of fundraising and donations. He stated that TIF is not an option because of the nonprofit status. <br />Chairperson Steffen asked the closing date for the purchase agreement. <br />Economic Development Manager Sullivan replied that the closing date is July 31 Si <br />Chairperson Steffen noted the goal to bring restaurants into the community and noted that it is not <br />typical to have a nonprofit operate a restaurant therefore he was doubtful similar requests would <br />come forward. He stated that the program has been used a few times in the last ten years and he <br />believes it is a good program to have. He stated that it would appear the question is whether to <br />grant an exception to the current policy for the program or to change the program and noted that <br />he does not have a preference. <br />Member Cords stated that he likes the idea of granting the exception and did not see a need to alter <br />the program. <br />Member MacLennan agreed. He stated that the EDA will evaluate each business. He noted that <br />this is a great organization that will provide a good service, but he would want the ability to <br />evaluate each business. <br />Member Olson asked the reason for omitting nonprofits from the policy to begin with. <br />Economic Development Manager Sullivan replied that this policy was created prior to his time <br />with Ramsey. He stated that the provision was likely included as a nonprofit does not generate a <br />tax base. He stated that there is the ability to grant an exception. <br />Member Riley commented that he would want to elaborate on what the exception is and why this <br />nonprofit is being allowed to avoid having to grant similar exceptions in the future. <br />Economic Development Manager Sullivan noted that this project is within The COR and on City <br />owned land. <br />Economic Development Authority/ July 8, 2021 <br />Page 5of12 <br />