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Economic Development Authority 1~linutes Febmary 9, 2004 Page 3 many years. Mr. Motin expressed he is less concerned with the amount of private money since it doesn't add up to much and can be financed by a bank. Commissioner Klittzing stated that the commission has gone through enough of these proposals and knows that there axe no perfect proposals, and that this is a good project for the City of Elk River. She stated that she does not want to pass up this opportunity. Gary Santwire, representing adjacent property owners, expressed concerns with the project. He stated that this building is proposed to have 20,000 square feet and that it should be an additional 10,000 square feet; it needs to be of maximum use now, which would be 30,000 - 36,000 square feet. He expressed that he did not feel the need for additional multi-tenant space is market driven, and if it was not rented out, them could be negative market problems as a result. He stated that cuxxendy Elk River industrial lease space has a 20% vacancy. He stated that the East Business Paxk was required to be built as part of a development agreement and has had land-use changes and vacancies. He feels the market is not strong here for Light Industrial space. It is his desire to see Orluck Industries in Elk River; however, he has concerns with not fully using [he City's Joplin Street site. Ms. Mehelich stated that the company always intended to build more than what is needed for future growth and fox tenant space. Commissioner Tveire asked if blx. Orluck had a tenant in mind. Mr. Oxluck stated that he does have someone in mind that would possibly take 12,000 square feet. Commissioner Tveite stated that he felt the proposal fox the city's lot was a little underutilized, but likes the project. Ms. Mehelich stated that staff initially proposed to Mr. Orluck splitting this acreage two years ago, however, Big Lake is currently offering to Ivlr. Orluck three acres with the same type of Financial incentive. President Gongoll thanked Mr. Orluck for his interest in locating to Elk River and expressed concerns of underutilization and stated that he is bullish for good quality development. He is concerned with the equity portion of financing. He stated that he is looking for at least 10% equity on the part of the owner, and he felt that, for hhn, utilization of the site is less of a problem than the equity. MOVED BY COMMISSIONER KLINZING AND SECONDED BY COMMISSIONER MOTIN TO RECOMMEND APPROVAL OF THE PRELIMINARY PROPOSAL CONCEPT FOR THE ORLUCK INDUSTIRIES PROJECT AND FOR STAFF TO COMPLETE THE DUE DILIGENCE PROCESS FOR THE NECESSARY LAND USE AMENDMENTS, FINANCIAL ANALYSIS, AND TAX REBATE FINANCING PROCESS. STAFF SHOULD ALSO INITATE THE LAND USE AMENDMENT PROCESS TO CHANGE THE LAND USE FROM "COMMUNITY COMMERICAL" TO "LIGHT INDUSTRIAL". MOTION CARRIED 5-0.