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EDC Minutes January 21, 2020 Page 3 of 8 ----------------------------- down. He said it has been a tenant's market for a long time but now landlords are saying hey for the past 5-10 years, tenant you have had a great deal but now since inventory is down rent is going up. He stated that this is causing tenants to say, well for those prices I might as well buy land and build my perfect building but they are only starting to think in that process. Mr. Grotzk said that construction costs have not gone down but they say to tenants and buyers is buy land and build your perfect building because you are going to be in there for 10 years and over 10 years. He explained over the past couple of year's potential buyers and tenants ask what is available in the whole market and rarely do they find more than three that fit exactly what they want but the tenants or buyers say they do not like those three. He then tells them to buy land and build what they want and they talk about it being too expensive. He stated that it is a circle that continues because of the inventory issue. Mr. Grotzk also explained then they either do nothing or they start the long process in regards to construction and they are going that route because of the inventory issue. He explained that rents were low previously because of a good supply of inventory and now that rent is going up it is helping encourage people to start that construction process. He stated that it a slow process. Mr. Grotzk explained to the Council that they will take their marketing and the City's marketing, put it together and push it out to a very broad market, both in business wise and location wise to help sell the Pequot lakes area and the opportunity that is here. He stated that they will put their packet together, it goes on their website, the MLS, and then other commercial websites they have available to them. He said that there is many small sites that it could be put it on, then it ge#s fed tough feeds and sometimes you don't even know where this information ends up because it just keeps passing through the flow. He explained that they also market it directly to those they have worked with in the past that have looked at something like this. He said they will also go to those that have expressed interest in leasing or buying space because if they can't find it. Mr. Gortzk said that they will push it to a much broader, probably multi-state area. He discussed that if businesses looking to expand and can get the workforce that they need they will relocate. He also said sometimes it is just lower cost and better living up here and people are interested in coming up here for that. He told the EDC that today was really just a chance to find out who you are, what your desires are for the land, and that gives him a chance to go back and think of if they have the ability to help Pequot Lakes fill that land and grow that development. Mark Jurchen discussed the Heart of the Good life video and how that talks about what Pequot Lakes is looking for and backs up what Chair Lindholm had discussed earlier. He talked about having good tenants and high standards on how the development looks. Mr. Grotzk said it was a great video and he wanted to make sure that the video and the marketing matched what Pequot Lakes