Minutes - Council - 05/25/1999 - Laserfiche WebLink

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Councilmember Zimmerman thought that the funding would be coming from tax increment financing. Mr. Norman stated it was easier to take the funding from the general fund for now, however, the TIF funding could be done. Motion by Councilmember Zimmerman and seconded by Councilmember Hendriksen to enter into contractual arrangements with Richardson, Richter & Associates, Inc. to perform a feasibility study of the proposed rail industrial park for the area to the southwest of AEC Energy Industrial Park, with the funding to come from TIF. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Zimmerman, Hendriksen and Anderson. Voting No: None. Mayor Gamec recessed the regular Council meeting at 8:58 p.m. Mayor Gamec reconvened the regular Council meeting at 9:10 p.m. Case #9: Proposed Direction for AEC Energy Park Site for Direct Enclosures Development Agreement City Administrator Norman stated that AEC Energy Park is nearing development potential completion. There still remain areas for expansion of current projects, however, only one site remains that has yet to receive a commitment. The remaining site has been commonly referred to as the "wetland site". Staff is currently working with a company from Maple Grove to locate a 15,000 square foot facility, which would be expandable to a total of 30,000 square feet. It was determined that site work estimates came to over $250,000. Mr. Norman noted that at the Council work session of May 18, 1999, Council directed staff to continue negotiations as to equitably distribute the costs among the separate parties prior to Council consideration of the matter. Mr. Norman reported that significant progress was made in the negotiations to reduce the cash flow deficit in the project, by about $150,000. The City of Anoka has tentatively agreed to pay for one-half of the electrical transmission line location agreement, which was executed on May 22, 1996. Additionally, if the City agrees to work with the development company to finance construction of the facility, a 30,000 square foot building will be built immediately rather than the originally proposed 15,000 square foot facility. He pointed out that without the assistance of TIF, this project would not be feasible and the City would generate no future tax revenues from the property. After the TIF district is decertified, there would be about $25,000 in taxes yearly. Mr. Norman asked for approval to negotiate a development agreement with Direct Enclosures. Councilmember Hendriksen inquired when the TIF district would be decertified to which Mr. Norman replied it would be in the year 2006. He reiterated that this would be the last pamel, however, some parcels do have room for expansion. City Council/May 25, 1999 Page 16 of 25