03-06-2006 EDA MIN SPEC - Laserfiche WebLink

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SPECIAL MEETING OF THE ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, MARCH 6, 2006 Members Present: President Gongoll, Commissioners Dwyer, Farber, Gumphrey, Klinzing, Motin and Tveite Members Absent: None Staff Present: Community Development Director Scott Clazk, Director of Economic Development Catherine Mehelich, Assistant Director of Economic Development Heidi Steinmetz, City Admutistrator Lori Johnson, and Recording Secretary Jessica Miller Call Meeting To Order Pursuant to due call and nonce thereof, the meeting of the Economic Development Authority was called to order at 5:45 p.m. by President Gongoll. 2. Consider Agenda It was the consensus of the Economic Development Authority to approve the March 6, 2006 agenda. 3. Discuss Potential Financial Incentive for a Business eeking Location with the City Director of Economic Development Catherine Mehelich explained that a business that is seeking location within the City of Elk River has recently requested financial assistance from the city. Ms. Mehelich stated that Elk River is among the top two or three commututies in which the company is considering a location. Ms. Mehelich indicated that the company wishes to remain anonymous until a community is selected. Ms. Mehelich described the company and indicated that the company has identified an approximately 20-acre pazcel of land in the city to acquire for the construction of an 180,000 square foot data technology center. She stated that the company's estimated cost of the project is $125 million including land, design and construction, equipment, and extensive mechanical systems and that the company's end real estate value may have a range of $10- $20 million. She stated that the company anticipates a minimum of 15 full-time employment positions within the project with an average annual salary of $70,000 each. She noted that the company is Minnesota based and among the top 50 Fortune 500 ranking and one of the largest employers in the state. Ms. Mehelich described the issues that the EDA needs to consider with this request: • This request does not fit the city's tax abatement application model for the financial "but-for" test although it appears that "but-for" the offering of assistance this company would not select Elk River as a location but rather a community that is offering a location incentive.