7.1. SR 02-20-2007 - Laserfiche WebLink

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property that would be used for the treatment plant expansion on the property to the north. They are prepared to berm and screen the site as needed. Further, we have requested that GRE work with ERMU to provide a mechanism where a rate reduction is realized by ERMU that is similar to the transfer made to equity owners in GRE. This is a complex arrangement which is still being negotiated. Bryan Adams, general manager of ERMU, has been involved in these discussions and continues to work direcdy with GRE to come to an agreement on this issue. Finally, the agreement also requires that GRE meet all city permits and other approvals as required by the city. Representatives of GRE will be at the meeting to give a brief presentation on the plant and their proposal. Financial Impact · Payment in lieu of taxes - $375,000 for five years . City's share of property tax on real property estimated to be approximately $70,000 per year for the life of the plant . Property tax on personal property would be exempted throughout the life of the project Attachments . Resolution approving the construction of a 150-200 MW simple-cycle peaking plant fueled primarily by natural gas with fuel-oil back-up . Agreement between GRE and the City of Elk River . Letter from Joe Jubert, manager of Generation Project Development for GRE · Site maps for waste water treatment plant expansion . E-mail from Joe Jubert regarding GRE position regarding transfer of land for WWTP expansion · Draft map of option for WWTP expansion and GRE land Action Reauested Council is asked to consider the attached resolution supporting the legislative property tax exemption for GRE's peaking plant. Council Action Motion by _ Second by _ Vote Follow Up S:\Council\Lori\2007\GRE peaking plant.doc