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<br />Anoka and Coon Rapids are virtually 100% developed for industrial property, but Elk River has <br />more industrial property available. <br /> <br />Member Elvig clarified the two major elements he would like to be considered: how to generate <br />better cash flow for the City; build-out incentives to maximize the property. <br /> <br />Member LeTourneau arrived at 7:35 a.m. <br /> <br />Economic Development Coordinator Sullivan explained regarding build-out incentives, the <br />City's ability to provide land for $1 for the most part has come and gone, unless it is an <br />extraordinary project. <br /> <br />Member Elvig noted the possibility of splitting the property to give an advantage to the owner. <br />One possibility would be allowing the property owner a 2/3 build-out with another 1/3 available; <br />the City would sell the property for a certain amount if the remaining balance is built out in the <br />next five years; if it is not built out the property owner would be charged an additional sum of <br />money. Economic Development Consultant Mulrooney explained Ramsey has done this in the <br />past. He eXplained the Economic Development Coordinator has taken this one step further with <br />a better deal for the City. The companies pay upfront for the excess land, and if they expand at <br />some point in time the City would consider additional incentives to help underwrite that cost. <br />From a cash flow perspective this is better for the City and shifts the burden on the company. <br /> <br />Economic Development Coordinator Sullivan indicated when staff negotiates they work towards <br />the company having some skin in the game. The City is providing less assistance than when he <br />started in 2000, and companies want to be here. He believes the deals have been negotiated well <br />and they are in a good position right now. <br /> <br />Chairperson Riley commented the EDA has not seen the deals that are being offered and have <br />historically been offered. Economic Development Coordinator Sullivan explained the Council <br />sees all the deals that are negotiated. Member Elvig noted the deals are pretty well thought out <br />before coming to Council; ifthere is an anomaly it is brought up earlier. <br /> <br />Economic Development Consultant Mulrooney indicated it is important for the EDA to know the <br />position has been that the City puts in as little as it can into each and every deal to try to make it <br />happen. Doing the deal may mean a little more in one case than in another. Staff looks at the <br />quality of the project and what kind of industry it is. Staff tries to head in a direction towards <br />industries that are more on the cutting edge and provide higher paying and more skilled jobs, but <br />also diversifying the local economy so all of their eggs are not in one basket. <br /> <br />Member Elvig suggested the EDA be provided with information that was recently discussed at a <br />North Metro Chamber meeting in October 2, 2006 regarding changes in the world economic <br />environment. He noted the product mix and the businesses that are here today may not be here <br />five years from now. <br /> <br />Economic Development Coordinator Sullivan indicated he serves on a panel for the Corporate <br />Center at the Technical College that puts businesses together with the Technical College. The <br /> <br />Economic Development Authority/October 19, 2006 <br />Page 4 of7 <br />