08-11-2003 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes Augur 11, 2003 6.1. Semi-Annual Inquiry/Prospect Report Page 3 Director of Economic Development Catherine Mehelich reviewed the 2003 semi- annual inquiry/prospect report. Ms. Mehelich noted that staff has had as many prospects to date this year as in the entire 2002 year. Ms. Mehelich also noted that approximately 60% of the prospects were industrial and were primarily seeking general information rather than specific siting proposals. She stated that this suggests businesses are researching options for when the economy improves. She stated that since 2001, three industrial businesses have located to Elk River, while 131ocated elsewhere. She stated that reasons included allowing more warehouse and outside storage, land price, available sites, and financial incentives. Industrial Land Development Strategy Update Director of Economic Development Catherine Mehelich stated that as directed by the EDA in June, staff and Sid Inman of Ehlers & Associates have met with the following four landowners to gather information that will assist staff in developing a process for each landowner that reduces the price competition between landowners within the city, while at the same time allowing them to be competitive with land outside of the city: • Elk Path Business Center -west business park • Gagne Properly -west business park • Elk River Business Park -east business park • Cascade Industrial Park -southeast industrial park In addition, staff gathered information and research on property special assessments and the estimated costs to prepare the sites for immediate sale and development. Ms. Mehelich stated that after the meetings, staff and Mr. Inman presented a Matrix Comparison of Key Industrial Client Requirements by the City of Elk River Product Offering, to the EDA Marketing Committee for discussion. The Committee concluded that only three of the properties are realistic for competitive industrial marketing in the short term: • Elk Path Business Center (Phase n • Elk River Business Park • EDA -Brown Property (Phase n Mr. Inman stated that the Marketing Committee also recommends the following conclusions and requests direction from the EDA: • Landowners should be provided an equal base amount per square foot for their property, then the city should write down to zero dollars to be competitive. • The city should consider using special assessments and, if necessary, write down improvement costs with tax increment financing (TIF) or tax rebate financing ('TRh~.