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1998 <br /> <br />ELK RIVER MUNICIPAL UTILITIES <br /> <br /> 322 King Avenue <br />Elk River, Minnesota 55330 <br />Phone (612) 441-2020 <br /> Fax (612) 441-8099 <br /> <br />Mr. Ty Bischoff <br />Sherbume County ~r <br />Sherbume County Courthouse <br />13880 Hwy 10 <br />PO Box 320 <br />Elk River, MN 55330 <br /> <br />Dear Mr. Bischoff~ <br /> The Elk River area has experienced and will continue to experience large growth. The ongoing <br />developments with restructuring the electric industry has complicated the supply side of the electric <br />industry. The two factors of fast growth and industry restructuring has raised some concerns about <br />Elk River Municipal Utilities ability to provide this area with reliability and adequate electric: power <br />and energy. To solve this concern, Elk River Municipal Utilities is exploring the installation of a <br />gas turbine electric generation facility in Elk River. This facility would supplement our existing <br />diesel generating facility on Main Street across from the Elk River dam. The proposed facility <br />would be constructed at the location shown on the attached map. Necessary electric transmission <br />facilities and gas transmission pipe line for fuel are akeady directly adjacent to this property. The <br />property is already owned by Elk River Municipal Utilities. The cost of equipment for this facility <br />including gas turbine, electric substation, alternate fuel storage facility, etc. is approximately <br />$15,000,000 and would be owned by Elk River Municipal Utilities. <br /> Initial cost along with ongoing operating and maintenance costs are a large concern. Because <br />this would be owned by the Elk River Municipal Utilities, we assume this facility would be exempt <br />fi.om property taxes. To finalize our financial modeling of this proposed project, would you <br />confirm in writing the tax exempt status assumption of this project at your earliest convenience. <br /> <br />/"'"-~t regards, ,-, .? , <br /> <br /> lgryan C. A~ P.E. <br /> ~ne~ ~~ <br /> <br />cc: File <br /> <br /> <br />