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Special EDC Minutes <br /> June 1, 2020 <br /> Page 5 of 6 <br /> ----------------------------- <br /> Nancy Malecha reminded that EDC of a conversation at the March EDC meeting <br /> with Nate Grotzke from Close Converse that Brainerd and Baxter are both <br /> offering land at $1 per square foot. She said he noted that the pricing for the <br /> Heart of the Good Life is good but a potential buyer may use other cities as <br /> leverage on their offer. Ms. Malecha asked them to keep that in mind and <br /> consider what other entities are also offering for their respective land. Tim Houle <br /> clarified that an acre is 43,560 square feet. <br /> Mr. Mauseth provided the EDC with information on how they came up with the <br /> $42,000 per acre proposal or offer. He said they got an opinion of a broker's <br /> value on the land and the first one that they got came in at a $40,000-$45,000 <br /> per acre. He said that he received a second opinion from a local broker and he <br /> thought the $65,000 per acre was high and noted that the City of Brainerd was <br /> selling shovel-ready sites at$45,000 per acre. He stated that he also conducted <br /> research on prices for state wide shovel ready sites and he found 11 sites <br /> ranging from $25,000 per acre in Duluth to $83,000 per acre in Becker. He said <br /> he feels their offer is reasonable. <br /> Ms. Malecha stated that she and Mr. Glynn have had some discussions <br /> regarding the following information and just wanted to make the EDC aware of it. <br /> She stated that the current City water and sewer utilities are in very close <br /> proximity to the proposed site. She asked them to keep in mind that existing Xcel <br /> Energy employees may be leaving the amenities and services and the Brainerd <br /> and Baxter areas to utilize Pequot Lakes amenities. She said that Xcel Energy <br /> would be an exceptional anchor company to kick off the Heart of the Good Life <br /> Development and the potential economic development opportunities in our area. <br /> She stated based on all of the above information presented her and Mr. Glynn <br /> are recommending to the EDC to accept the business proposal from Xcel energy <br /> and recommend as such to the City Council. <br /> Mr. Glynn stated that Xcel Energy is a tremendous company and they are not <br /> asking the City for anything in regards to assistance to build. He said it is great <br /> that additional employees are coming into town and there is always hope that <br /> they make Pequot their home. He stated it is a great opportunity for the City to <br /> bring in an anchor into the Heart of the Good Life and it is his recommendation <br /> as well that the EDC moves forward with this. <br /> Commissioner Rieck stated that she if very excited about Xcel coming in to <br /> Pequot Lakes and she agrees that we accept the offer. She stated that she <br /> would like to see a small profit and asked if Xcel Energy would accept $45,000 <br /> per acre. Mr. Mauseth accepted that offer. Commissioner Lelwica said that she <br /> had concerns about this setting a precedence to what they Heart of the Good Life <br /> will be but she said they will be a good community partner. <br /> COMMISSIONER RIECK MOVED TO ACCEPT THE BUSINESS PROPOSAL <br /> FROM XCEL ENERGY FOR FOUR ACRES IN THE HEART OF THE GOOD <br /> LIFE DEVELOPMENT, IMMEDIATELY WEST OF THE CITY'S PUBLIC <br /> WORKS FACILITY, AT A PRICE OF $45,000 PER ACRE. <br />