08-11-2008 EDA MIN - Laserfiche WebLink

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Economic Development Authority Minutes Page 4 August 11, 2008 ----------------------------- Commissioner Farber commented that in previous meetings, former Community Development Director Scott Clark discussed providing a land grant and tax abatement. Their initial request was for a land grant. Land was separate from a tax abatement, and fees would be negotiated. Commissioner Klinzing stated the EDA needs to decide if they would like to provide a land grant. Ms. Johnson stated the City still owns this property and there are costs associated with owning the property, but it is the City's polity to recoup costs associated with the land, through tax abatement. In addition to the existing land costs associated with this property, the City will also experience costs to install the remaining sewer and water, wetland mitigation costs, etc. Mr. Sorenson stated that they would require a land grant, and at least a portion of a tax abatement. Commissioner Tveite stated the project is looking for the land to be granted and the fees to be waived, thereby being an up front incentive. Historically, the City has done apay -as- you-go-type benefit where there would be a reduction in taxes that they would receive over time. Because the land has value, if the City gifts this land, it's considered an incentive and it would have to be accounted for. He expressed concerns with the 20 year, 100% City participation as historically, it's been a 10 year participation. The incentive request includes large numbers without a great deal of specificity involved with them, as well as going outside of what they typically consider. President Dwyer stated there will need to be significant financing obtained, and hasn't seen any letters of intent. He asked if the project is viable and financed. Commissioner Touchette asked if feasibility studies were done to determine if the entities inside of this project were feasible. Mr. Sorenson answered by stating there was initial conversation with Brunswick and Hilton, among others. They've given preliminary approval for the viability of the project. The restaurant will be built by them. As far as the hotel goes, there will be some additional information brought forward on demographics. He asked the City if they want to help them with the land grant and if so, would like a letter stating such. Commissioner Farber asked if Mr. Sorenson could provide financial information and financial backing. Mr. Sorenson felt they could probably do that. Mr. Touchette asked when that would occur. Mr. Sorenson stated due to initial investors backing out in the middle of the project, that they needed to locate secondary investors. He stated the investors would want to know the value of the land, and until the appraisal comes back, he can't give his investors any further information. He would like the City to make a decision on whether or not they are willing to grant them the land.