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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 /> <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 /> <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 /> <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 /> <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 /> <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 /> <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 /> <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 /> <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 /> <br />Economic Development Authority/March 8, 2006 <br />Page 7 of 9 <br /> 7 <br /> <br /> <br />