08-11-2008 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes Page 3 August 11, 2008 MOVED BY COMMISSIONER ZERWAS AND SECONDED BY COMMISSIONER MOTIN TO APPROVE THE EDA FUND BALANCE DESIGNATION POLICY. MOTION CARRIED 7-0. Mr. Simon presented the staff report. MOVED BY COMMISSIONER ZERWAS AND SECONDED BY COMMISSIONER gI.INZING TO ADOPT RESOLUTION OS-07 ESTABLISHING THE 2009 REFERENDUM TAX LEVY AS APPROVED BY VOTERS FOR A RECREATIONAL FACILITY TO BE LEASED TO THE YMCA. MOTION CARRIED 7-0. 8. Discuss Entertainment Center Proposal Mr. Gongoll presented the staff report. Also present to answer questions were David Sorenson, Energy Entertainment Enterprises, LLC. Mr. Sorenson gave a brief update on the project. President Dwyer expressed concern with the viability of the project and the lack of investors, lenders, or financial information from Mr. Sorenson. Mr. Sorenson stated they did provide some financial information to Ehlers but they do need to provide their investment group with the City's decision on whether or not we will provide the 14 acre land grant. At this point, he felt Outlot C of the Gateway Business Park was the best location for their project. Commissioner Motin asked why highway frontage was not necessary. Mr. Sorenson stated it would be best to place the building on or near on the high spot of the land, not requiring highway frontage. It will have many components inside the building and around the grounds in order to make it a landmark facility that will attract people from out of town as well as commuter rail riders and local residents. Commissioner Zerwas asked if the project could be built with consideration of a possible $2 million dollar tax abatement. Mr. Sorenson stated he posed a good question and was not sure without additional review. Commissioner Motin asked Mr. Gongoll if the County would offer the same tax abatement amount as the City may consider. Ms. Mehelich stated the County typically follows the City's tax rebate consideration and that they have a ten year polity limit as well as limits regarding the number of retail projects they consider within each city. Commissioner Klinzing stated how she read this request, was that Energy Entertainment Enterprises is requesting the City give them the land needed for the project, waive associated fees in the amount of $977,000, and to provide a tax rebate close to $2 million. She was concerned that the City has not provided this much assistance to any one project in the past. She also stated that typically, the rebate money given is used to pay the City for the land and for the utilities, so the City is actually paid back through the rebate process.