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<br />EDA Minutes <br />July 13, 1998 <br />Page 2 <br /> <br />e <br /> <br />Also, they are working with staff regarding the alignment of the road to the east <br />to layout the site. He explained that the project consists of multi-tenant <br />buildings and single user buildings. Mr. Winkels indicated the total gross square <br />footage of the proposed buildings is estimated at 350,000 square feet. He <br />expects these buildings will generate annual property taxes in the $2.00 per <br />square foot range. AMCON proposes to begin construction of a 50,000 sq. ft. <br />building to the west on or before April 1, 1999. Mr. Winkels stated he anticipates <br />the total industrial park to be completed in 5 years or less. In order to meet <br />tenant expectations, the roads and sewer and water would need to be <br />completed by August 1, 1999. <br /> <br />President Duitsman expressed his support for the industrial park project. <br /> <br />A discussion followed regarding the wetlands on the property. Pat Klaers, City <br />Administrator, noted one of the wetland issues involves abandoning part of a <br />county ditch system and piping the surface water through the new storm <br />drainage system. <br /> <br />e <br /> <br />Commissioner Gongoll questioned what the anticipated occupancy of the first <br />phase building is expected to be. Mr. Winkels indicated he is confident enough <br />of the market that they are prepared to construct a "spec" building. <br />Commissioners Gongoll and Dwyer questioned if the original request for TIF <br />District No. 19 included the industrial park improvements. Paul indicated that <br />the $4.4 million original request did not include any of the business park and no <br />revenues were anticipated from the industrial component. Paul indicated that <br />the $1.2 million in streets, utilities, curb and gutter and grading, as well as the <br />cost of the land, would be eligible for TIF financing. <br /> <br />Commissioner Dwyer questioned who would be the owner of the industrial park. <br />Mr. Winkels indicated Matt Fischer will be buying the property. Tony Gleekel <br />indicated the ownership of the property will be negotiated between AMCON <br />and the entity purchasing the Vandenberg property, and Associated <br />Developers will not be an owner of the industrial park. Also, ownership will <br />depend on how the income for the projects are generated. Since the money <br />will be coming from two different sources, they will be handled as two separate <br />projects. Paul explained that it will be one TIF project with one developer <br />agreement with Associated Developers. Mr. Gleekel indicated that he <br />anticipates the end product of the industrial park to be a combination of <br />owner-occupied and leased tenants. <br /> <br />Commissioner Bender questioned whether it is realistic for the developer to <br />complete the project in 5 years. Mr. Winkels explained the activity and growth <br />he is observing in the area indicates a strong market for industrial park interest. <br />He also felt the property was very attractive for this type of use. <br /> <br />e <br /> <br />President Duitsman questioned the status of negotiations with the mobile home <br />owners in the Hohlen park. Mr. Gleekel explained they have worked with a <br />number of the residents for sale of their homes. He noted that the developer <br />has made a decision to accept the appraisals and is not attempting to offer a <br />lesser amount to the owners of the mobile homes. He indicated that 4 or 5 <br />homes were bought out in the last 10 days, and that there are only a couple <br />