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Special EDC Minutes <br /> June 1, 2020 <br /> Page 2 of 6 <br /> ----------------------------- <br /> explained how the infrastructure would need to brought in from Morehouse and <br /> Derksen Roads to the south and to the new road that would go about 425 feet <br /> into the Heart of the Good Life. <br /> Mr. Houle presented the potential phasing map to the EDC and stated that they <br /> updated the estimated costs on the map. He said he did a couple per acre <br /> approaches. He stated one was just the Xcel site and the other was the Xcel site <br /> and the lot to the west by the Paul Bunyan Trail. He said the cost worked out to <br /> about $44,000 to $45,000 per acre which is close to the overall development of <br /> around $42,000 to $43,000 per acre. <br /> Mr. Houle said that somebody asked about a per foot cost and he said it turned <br /> out to about $150,000 per foot. He stated that his guess from an infrastructure <br /> cost distribution standpoint is that the price Xcel Energy is offering does appear <br /> to cover the City's infrastructure costs. <br /> Mr. Houle reminded the EDC that Derksen Road was overlaid for the Highway <br /> 371 project and used as a detour road therefore he does not have concerns <br /> about bigger trucks being on that road. He also said that they would set the new <br /> roadway in the Heart of the Good Life up for business park/industrial park traffic. <br /> He discussed what he heard from a financial advisor that you may have to make <br /> a deal to sell the first couple of lots and then slowly ratchet up the asking price. <br /> Commissioner Lubke asked if they will be coming in on the service road that has <br /> not been built yet or coming in from Derksen. Mr. Mauseth stated that they will be <br /> using both roads. He stated that the trucks will exit onto Derksen. <br /> Jason Murray from David Drown Associates presented a financial analysis to the <br /> EDC regarding market value, tax impact, and tax increment financing for this <br /> potential project. He stated that they reached out to the County for a <br /> determination of market value based on plans and specs and they came back <br /> with roughly about$291,000, which equates to about a $5,000 projected tax <br /> capacity. He said by taking that tax capacity times all the local, county, and State <br /> tax rates it will show about $7,200 of taxes would be potentially generated by this <br /> project. He said even though he is not an appraiser his experience is after the <br /> building is constructed they will look at comparable buildings or alternatives in <br /> setting the value. He feels that the City will see a value in the potential property <br /> of about $350,000 to $400,000 you will see that market value go up. <br /> Mr. Murray informed the EDC Commission that they can set up tax increment <br /> financing to support the overall developmental of the business park. He said that <br /> Xcel is not requesting TIF but the City could certainly use it to support the <br /> needed infrastructure. He stated hopefully the City can get at least half of the <br /> cost with the Business Development Public Infrastructure (BDPI) Funding <br /> Assistance and then based on Mr. Houle's calculations that the City will need to <br /> come up with about $150,000 on the local side of things to help infrastructure <br /> expansion and TIF could be used for that. He said the City can use TIF as a local <br />