10-18-2007 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes Page 3 Ocrober 8, 2007 • Discounts on certain fee schedules such as plumbing and electrical • Curb and gutter, walking paths, and area illumination • Applicable rebates, financing, or incentive programs Ms. Mehelich stated that staff is looking for EDA feedback and direction on how to proceed. Commissioner Klinzing stated that this is an exciting project. She indicated that normally, the tax rebate financing would be inclusive of all the financial considerations and questioned why that approach was not taken. Mc Fleischmann explained that Energy Entertainment Enterprises, LLC did not wish to be presumptious but would be interested in pursuing that option. Commissioner Dwyer questioned if the estimated constmcton costs were known. Mr. Fleischmann indicated construction is estimated at upwards of $20 million. David Sorenson, Energy Entertainment Enterprises, LLC -explained that the Gateway site was chosen due to its close proximity to the Northstar Rail and the park and ride. He noted that he is a long-time resident of Elk River. Commissioner Motin stated that the project sounds intriguing. He questioned the estimates on the proposed incentives. Mc Clark indicated that the incentive costs are difficult to gauge but he would estimate between $2 - $3 million. Commissioner Motin stated that he would like to see an extension of the abatement period. Cor~unissioner Tveite indicated that he also finds the project intriguing but expressed concerns over the request for a letter of intent prior to completion of the architecmral work. Mr. Sorenson explained that the letter of intent would be necessary to secure funding for the architectural work. Discussion took place on the timing of the letter of intent and the land grant. It was the consensus of the EDA that they were in favor of the project but that the letter of intent would need to be structured so that if approved, financial considerations would be contingent upon progress of the project. Mr. Clark indicated that staff will come back at the November EDA meeting with the following information: • Full analysis of the city's overall costs • Analysis of the incentive request • Initial findings on the but for analysis • Staff wdl work with the EDA attorney and Energy Entertainment Enterprises, LLC to draft a letter of intent Commissioner Motin indicated that he would like staff to compile a list of pros and cons for this project. Commissioner Zetwas stated that he would also like staff to project how this project would affect the remaining Gateway property. 9. Update on U S Post Offi e Prop Community Development Director Scott Clark presented his staff report. Mr. Clark stated that the U.S. Post Office will be selling their Line Avenue property through a sealed bid process. Mr. Clark explained that staff recognizes that the subject property is a very attractive