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~ity of <br /> <br />iver <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />FROM: <br /> <br />DATE: <br /> <br />SUBJECT: <br /> <br />Economic Development Authority <br /> <br />Pat Klaers, City Administrator <br /> <br />August 17, 2000 <br /> <br />Development of the EDA Site <br /> <br />On August 14, 2000, the EDA agreed to the Santwire (Norha) and Ripplinger <br />development projects on the EDA site. This included the city splitting with <br />the developers the approximately $10,000 cost for the extension of sewer and <br />water into the site. The Ripplinger project is proposed at 15,200 square feet <br />and the Norha project at 22,500 square feet. Both of these building sizes were <br />larger than the initial proposal in July. <br /> <br />After the August 14 meeting, Mr. Santwire advised us that he believes it is <br />possible that the initial Ripplinger project could be expanded to 22,500 <br />square feet, which would provide more leasable space for business park <br />prospects. This is consistent with the Economic Development Strategic Plan <br />have more leasable space available, have the site built out to 45,000 square <br />feet, and have more taxable value in the community. The requested incentive <br />from the EDA for this additional 7,300 square feet is that the EDA absorb the <br />total cost for the extension of utilities from the street to the site. The original <br />estimate was $10,000 and at the 8/14 meeting the EDA had agreed to absorb <br />half. I believe it is appropriate for the EDA to absorb all of this cost in <br />exchange for a larger Ripplinger building and we have every indication that <br />the $10,000 cost estimate is high and that the actual expenses will be in the <br />$7,000-$8,000 range. As before, the funding would come from the EDA <br />reserve. <br /> <br />No changes need to be made in the EDA action of August 14 for this <br />additional EDA contribution into the project. If any EDA member has <br />concerns about this additional contribution of a few thousand dollars into the <br />project, please let me know. Otherwise, I will advise Mr. Santwire with our <br />concurrence of his request and we will both proceed accordingly. <br /> <br />13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425 <br /> <br /> <br />