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EDSR MEMORANDUM 05-12-1997
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EDSR MEMORANDUM 05-12-1997
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5/12/1997
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It also appears the petition for improvements out to the County <br /> property have stalled. The improvements would open up <br /> approximately 18 acres of Gagne property. It is staffs intention to <br /> meet with Mr. Gagne to discuss the same type of cooperative <br /> agreement which might be undertaken with the new owners of the <br /> Country Crossing Business Center. <br /> Unfortunately all of this makes it more difficult to locate an industrial <br /> user in the West Business Park. For most prospects, it would be <br /> unlikely to assume they would wait for the city to complete <br /> construction of the improvements in order to facilitate their project. <br /> Prospects for the West Business Park property have been relatively <br /> slim over the past several months so these issues haven't become a <br /> great concern at this point. It appears there has been a significantly <br /> higher level of interest in the one remaining lot in the Industrial Park <br /> than there has been in any land in the West Business Park. <br /> 6. Industrial Park Lot <br /> Staff has researched issues regarding the EDA's potential purchase of <br /> this last Industrial Park lot. It appears that the price would be <br /> significantly lower than the current listing price of$90,000. Staff <br /> ID would propose a modification of the Alltool tax increment district if the <br /> EDA wished to pursue purchase of this lot. The Alltool TIF district <br /> will have approximately $170,000 available in it at the end of 1997. <br /> Since this district was created prior to 1990, it appears that a simple <br /> budget modification would allow the EDA to use these funds elsewhere <br /> to accommodate economic development projects. There is a bill <br /> pending in the legislature however, that states any expenditure of <br /> funds over $50,000 would need to meet the but-for analysis in order to <br /> qualify. This would disqualify the EDA's use of these funds to <br /> purchase the Industrial Park lot unless a business was prepared to <br /> commit to completing a construction project on the site. <br /> These TIF funds, or a portion of these funds, could also be used in the <br /> West Business Park for various eligible activities. <br /> 7. Energy City Update <br /> The Minnesota Environmental Initiative recently hired Sara Coppock <br /> to, in part, undertake activities associated with Energy City. Ms. <br /> Coppock and city staff determined this meeting would provide a good <br /> Ak opportunity to update the EDA (which also acts as the Energy City <br />
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