Agenda - Council - 11/22/2005 - Laserfiche WebLink

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Economic Development/TIF Specialist Sullivan indicated he will do his best to provide the EDA • members with timely notices. Case #3: 2005 Update/2006 Priorities Economic Development/TIF Specialist Sullivan reviewed that staff has been working hard on acquiring, marketing and developing land in the City's industrial areas. In 2004 a summary was provided to the EDA stating how much industrial development had occurred over the past six years. A new summary has been completed and additional information has been added to the summary for discussion. He explained 2005 was a very active year for industrial development and redevelopment. Approximately $10,250,000 in new market value was created through the construction/expansion of eight industrial buildings. These projects will create at least 25 new jobs for the City and have the potential to create many more, The industrial growth in this community has reduced the City's industrial land inventory.. Currently, the City has approximately 31 acres of land left for. industrial development. It is time to look toward the future and try to determine if the City should acquire more land to accommodate this continued industrial growth. Member Gromberg inquired about a possible location for the acquisition of land and how the purchase would be funded. Economic Development/TIF Specialist Sullivan reviewed the area of the City north of Sunwood Drive, which is currently owned by the MPCA. He explained this area could become an expansion of the Sunfish Lake Business Park. The acquisition could be funded through an EDA bond or a TIF bond. He explained Sunfish Lake Business Park was paid for out of TIF District No. 1. This current acquisition could be funded similarly from other TIF districts that are financially stable or have excess funds at the end of the district's duration. TIF District No. 2 has the potential for $3 million in funds that are unallocated at this time. The budgets can be modified to allow allocation to go to purchases such as this. Staff has not approached the MPCA regarding the status of whether this property would be for sale. If the EDA is in agreement with the suggestion he would like direction to explore possibilities for this land and a funding mechanism to accomplish the acquisition. Member Strommen inquired about other options for land acquisition. Economic Development/TIF Specialist Sullivan replied staff is open to suggestions from the EDA on possible sites for land acquisition. The consensus of the EDA was to direct staff to conduct fact gathering regarding the purchase of the MPCA owned land north of Sunwood Drive and adjacent to Sunfish Lake Business Park, to determine if the MPCA would be a willing seller of this land, and to identify other possible parcels in the City for acquisition for industrial use. Member Gromberg stated at some point the City will need to make a determination regarding the possible rezoning of other areas in the City. Member Strommen indicated the Council is in the process of updating the Comprehensive Plan. She suggested it would be beneficial for the EDA to be part of that discussion. • Economic Development Authority/October 12, 2005 Page 4 of 5 -10-