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City Council ~finutes November 8, 2004 Page 2 ----------------------------- benefit increase by the council. which is consistent with the budget and union contract. She stated that meetings have been held today with all employee groups. She stated that the two things evaluated were that employees would not have to change their doctor and premium differences. She 'explained that Blue Cross/Blue Shield's premiums would have an annual savings over the amounts paid in 2004 for employees for family coverage of $3,000; for single coverage of $900. She explained that this plan would be through Central Minnesota Service Co-op, which serves ciries, school districts and other government agencies. She stated that the Utilities also has their coverage through this co-op. Councilmember Dietz inquired if the Utilities could go with our group. Ms. Johnson stated that they could but that they have a different structure. The Council agreed that the Blue Cross/Blue Shield proposal was the best option available. It was the consensus of the Council to enter into a contract with Blue Cross/Blue Shield unless there are renewal or other concerns that the Finance Director may have after meeting with them in the near future. This item will be placed on the November 15 Council Agenda for formal action. 4.2 .Joint Meeting- with EDA to Discuss Industrial Development President Gongoll called the EDA ~eering to order at 6:48 p.m. Members also present were Larry Koenig and Pat Dwyer. Executive Director Catherine Mehelich explained that in the past the EDA has directed staff to work with the private landowners before considering development of city-owned sites. Over the past 6 months staff has received a number of inquires for the City-owned Cargill land and the EDA-owned Brown land. Staff has worked with Ehlers & Associates to analyze the cost barrier and has met with private owners. A draft agreement for joint markering and development was provided to landowners in July and to date staff has not received any comments from the landowners regarding this draft agreement. The strategy is to put all land in the city on a level playing field and yet be competitive with the market. Recently the EDA Markering Committee recommended that the EDA consider opening a phase of its property for industrial development. Ms. Mehelich explained that the Cargill property could have the first two lots developed but that the remainder is not available for development until late 2005. If the YMCA should develop on the Brown property, they may need 10 acres, which may include lots 17, 18, 1, and 2 on the concept design. She explained how other cities have funded infrastructure improvements: City of Ramsey with excess revenues from an older TIF District (Elk River doesn't have any), City of Big Lake with Tax Increment Bond with the city reimbursing itself, or City of Monticello where the EDA levied $I million, purchased the first part of the property with that money, makes payments from the levy and writes down from $3 to $1 per square foot. She stated that the MN Department of Economic Development has grant money available for cities to open Industrial Parks and is accepting applications on an open basis. She stated that the manufacturers are price sensitive and wish to put as little cash down as possible. Tbe estimated cost to develop an industrial park on the Brown property owned by