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05/07/2014 - City Council Finance CommitteeFINANCE COMMIT`T'EE MEETING WEDNESDAY, MAY 79 2014 10:00 A.M. CONFERENCE ROOMS 2 A &B AGENDA I. AGENDA ADOPTION II. PUBLIC FINANCING ASSISTANCE A. CONSIDER AMENDMENT OF PUBLIC FINANCING POLICY - OPTION OF TAX ABATEMENT FOR SPECIFIC PURPOSES B. ASSISTANCE APPLICATION FOR FORMER TAYSTEE FOODS BUILDING REUSE III. OTHER BUSINESS IV. ADJOURNMENT Agenda Information Memo Finance Committee Meeting June 7, 2014 II. A. BUSINESS FINANCING POLICY — Consider Amendment of City Public Financing Policy — Option of Tax Abatement for Specific Purposes DIRECTION TO BE CONSIDERED: To make a recommendation to the City Council regarding an amendment of the City's Business Financing Policy to permit consideration of Tax Abatement for specific purposes to be defined by the City Council. FACTS (New Information in Bold): In the past, the City has relied on its competitive advantages including its location, proximity to the airport, 494 commercial area and the two downtowns, access to 494 and 35E, quality infrastructure, low taxes, rich broadband environment and other features to attract business vitality, expansion and location. To date, the City has been patient in allowing the private market to drive most development and occupancy deals on individual properties. While the City, through its EDA has been active on a selective basis to assist with multi- property assembly and redevelopment projects, it has relied on commercial owners and brokers to market properties and has focused City efforts on working with those private entities and responding to applications for business financing assistance on a case by case basis. The minimal use of business subsidies has allowed the City to maintain its low property tax rates for businesses that chose to locate and expand in the City without financing assistance. The City's current Business Financing Policy and application are based on an applicant or owner approaching the City to request assistance and the City has not proactively sought opportunities to offer assistance to prospects in response to standard site selection processes. Even as the recovery takes hold and the number of prospects increases, there are an increasing number of prospects, brokers or location consultants who include questions about local financing assistance, fee waivers, and other forms of assistance in their discussions of location options. Despite these inquiries, the City of Eagan has been able to attract MISO, Cloverleaf Cold Storage, Murphy Companies and others to make substantial investments in the City for the standard business reasons of price, infrastructure, business amenities and location. Through the City's Visioning process, a number of comments arose in both the Council and staff response groups suggesting that the City become more aggressive 5 about offering business incentives, either generally or on a targeted basis for certain priorities. As part of its 2014 Priorities, the City Council included an intention to "Reform the City's Financial Assistance Policy to enhance the City's flexibility and ability to pursue City priorities and amenities." In related conversations, examples of priorities and amenities have included data centers, colocation data centers, carrier hotels, certain redevelopment and revitalization opportunities and microbreweries. One of the few tools to support such projects not currently available through the City's Business Financing Policy is tax abatement. At its meeting of January 15, 2014, the Finance Committee discussed the potential to expand the City's policy to include the option of tax abatement in specific circumstances. Tax Abatement as a Development Tool • Currently, the City's Business Assistance Policy states that the City of Eagan does not provide business assistance through Tax Abatement. • Tax increment works best to build up from a green field or to replace lower valued, substandard buildings with new, higher valued ones. In the case of green field or economic development districts, it is necessary for the development to fall within specific use categories supporting job creation or affordable housing development, In the case of some existing buildings, the best new use of the property may be in the form of a remodeled or repositioned reuse, rather than demolition and replacement. • If the City were to see a public purpose in supporting green field development for uses other than jobs or affordable housing or to reuse an existing building for a higher and better use, tax abatement is among the only tools available for that purpose. As an example, if the City concludes it would be open to financing assistance for a project like the enhanced CSM Central Park Connnons plan, Tax Abatement and third party grants would be among the only options that may be applicable. • If the Committee were to recommend an amendment of the policy in this regard, staff would recommend that it be specific about abatement only applying to the incremental City tax revenue above the pre - project tax base and that the specific types of projects to which it could apply be defined in the policy. • Likewise staff would recommend that the specific list of project types or circumstances in which the tool would be applied be defined. It would be appropriate to confirm whether the underlined list above is appropriate for this purpose. • If the Committee recommends an amendment of the policy, an item will be placed on the consent agenda on May 20t" to schedule a public hearing in that regard on June 17t". ATTACHMENTS: Draft Amendment of the City's Business Assistance Policy on pages through '_. Ehlers memo regarding tax abatement on pages 6 through. GC3 4-o 0 .' L" dd U o� olml 40 CF3 • rl VaJ rA� 42 O 4-I cad o'' � .o H oCd N P, b O N o P�"Cl U v O N r a U N O o p 4 V) bq 0 w P" U cd N N c� cad Q a ' VIVJ P4 awl y O Eh U ;t,8 U 'o g ~ P. r- wi a a a { V]i OH -3 0 t f r O F O O >1 f >f� r� 0 ARP O ;, w O bA '5 O O 2 E, O Abb �.'� O o M " t\� _; k y VI �� a b — �-� pp 9V�; Gi N -0 FNy O �C R 1) cc3 O . td O t cd o �� o a N p O U U N O O U O v, U r, .O O R O A O Joll t NMI, 1 d N OK U d UO -° �o N P. a b 4) N 'd .p bb ''0 �Q'7J T ; U O � U p £ r, • N H V N N p N� V, N N -may A 4--f 5"t w0�TS°�' Q a y® y G y s; vo, ed G G G Q r- wi FJ N 0 r. 0 0 alz� 'd 0 0 0 0 d \A O N G O O (* O O O Ytil � 17'1 � 'Jl N pvy� O N p 0 , p .�' o U n rD O O 4-4 � � p b O SC N N U -+5 U N 4-i O� O E O. O w O o O c U cd 4. R o 0 `' -+5 o a cd o `+- o 0 O 4-4 O O O § ✓ � N f O o U � 4 t 9b ' , 0- N Gi U 2 0 5 C da ? ,V cbn O � V O W A 4 C', -.5 O bO O N p� Zi • • U U • • q yy U U O O N O O 4�, O ' by O O N p Z y, cad O bA O N �p r t� z O p . v O "d O cd Ry O c� ctl N 9 '0 c 0 o .0 0 o Q� ,� O bA 0 A�' cd o 0 y r� r+{ Y+ V �.% i-i �1 ♦ ri h+Y .+r V u 2 Ic�� r p� �4 r � ink .r.,yy./i I1 rJ� yOy YN PP��1 M� ".0 .� I l v . ® �1 {U CQ V tU U f i E .� 9 b C� 0 U FJ N "A N 42 > 0 0 0 4-4 1104 0 0 bl) Aj 4 0 0 44 0 go ri 0 0 0 0 4,1 bi 0 rl:j 0 U 00 -0 Di 4-4 4. 4� 0 -4al 0 0 0 In 45 2 to 00 4 2 0 Al 10 2, IS 0 42 Is N 2 0 42 bi 48 A 0 9 4-1 'I u 0 0 "A is ON \ \ � ,\ » \ k � ./ \ /� ¥f b � \ e ƒ/ �f ] � §« §.0 / 0 ƒ/ §k \k ƒ / § f / / \ « ƒ v ) \ \ j §R « � § 0 is ON To, Tom Pepper, City of Eagan From: Rebecca Kurtz and Mark Ruff, Ehlers Date: November 18, 2013 Subject: Information Regarding the Mechanics of a Tax Abatement Levy As a follow -up to the Finance Committee's discussion on November 6, the following provides additional information regarding the abatement levy. As previously discussed, many communities use abatement in a way similar to tax increment. so The property pays its taxes in full; the community receive the taxes generated prior to the abatement; and, the increase in taxes after development is directed to a specific cost, financed either by the developer or the community. Under this scenario, the net impact to the community would be the same as if a tax increment district was established. However, as stated in the memo dated October 3, 2013, "Abatements are special tax levies. The amount of the abatement must be added to the total levy for the current year, and must be included in the proposed levy for Truth in Taxation as well as the certified levy." Tax abatement is not lilce tax increment for levy purposes. With tax increment, the City does not add the TIF payment to the tax levy which is annually submitted to the County in September. However, with abatement, the abatement payment is added to the tax levy. When a city is abating only the increase in taxes from a new development, it does not create an additional burden for the tax payers, or raise the City's tax rate, because the increase in the value from the development offsets the higher levy. For example, assume a commercial parcel pays $68,000 in city taxes, After development, let's further assume the parcel's market value increases substantially so that it pays $668,000 in city taxes. If only the new taxes are abated by the City, the City would continue to collect the tax revenue of $68,000. The tax increase of $600,000, due to the development, would be added to the levy. If a pay -as- you -go note is issued to the development, the payment of $600,000 would be used malce payments on the note. In the example, if abatement assistance was not provided, the increase in tax revenue would help reduce the tax levy. { +� WVWV,Pf"1lers ric,Corn 19 E ■ ■ L,�E �w,7 _ �.-. �..,.._...Y..,...m.[�riint�.eac -1st ,.�. �.t:sE�ane mxm6a1- 657 «5 "OQ ,.� 3060 C:antrs Pointe Drive �s,�a�nsl�a ruuGic a nanr�t� Oftes also In Winonsh and 111hols tax 661 -ac)7 -5555 Roseville, MN 551 1 ,q -1122 tall froo 800 -552 -1171 RA While the impact of abating the increase in taxes does not create an additional burden for the tax payers, it does increase the levy amount. This is the biggest difference between abatement and TIF. For example, if the newspaper publishes that the City's levy increased by 5 %, the abatement could be 1% of the 5 %. Finally, abatement is a special levy, like debt, so it is outside any levy limits. Please do not hesitate to contact us if you have additional questions. 0 Agenda Information Memo Finance Committee Meeting May 7, 2014 III.B. ASSISTANCE APPLICATION FOR FORMER TAYSTEE FOODS BUILDING REUSE DIRECTION TO BE CONSIDERED: To make a recommendation to the City Council regarding business financing assistance for the DataBank colocation data center /carrier hotel project proposed for the former Taystee Foods building at 3255 Neil Armstrong Boulevard as it pertains to: 1) A waiver the application fee and escrow requirement for the DataBank financing application. 2) An application to the Minnesota Department of Employment and Economic Development Minnesota Investment Fund for a $150,000 forgivable loan. 3) An application to the Minnesota Job Creation Fund in the amount of $270,000. 4) An application for Tax Abatement of the City portion of the incremental tax revenue generated from improvements on the property related to the project. FACTS: General Background ➢ Greater MSP approached City staff several months ago indicating that a national data center operator named DataBank was pursuing the option of retrofitting the former Taystee Foods building at 3255 Neil Armstrong Boulevard to be a colocation data center. ➢ Greater MSP coordinated contacts between the company, the Minnesota Department of Employment and Economic Development and the City in response to the Company's request for consideration of public financing assistance. In response and in consultation with the Finance Committee and members of the City Council, the letter as an attachment below was forwarded to the Company in February. It indicated the City would be open to considering financing assistance for the project, with the level of assistance to relate to the nature of the proposed facility. The item before the Committee is what was contemplated in the letter, ➢ Ordinarily, an application for public financing assistance requires an application fee of $1,000 and an escrow for out of pocket expenses of $10,000, In consideration of the alignment of the proposed project with the City priority to attract a colocation V center and /or carrier hotel, staff is requesting consideration of a waiver of the application fee and escrow in this case. ➢ The specific components of the requested public financing package are outlined below. Minnesota Investment Fund Application ➢ The State has preapproved a Minnesota Investment Fund forgivable loan of $150,000 for DataBank, but it is still necessary for the City to approve and submit a Part Il application, negotiate a loan agreement and administer the transaction. ➢ This process requires a public hearing, resulting in a resolution and appropriate findings to support the application. ➢ The MIF program requires a finding of public purpose, which in this case can be both job creation and responsiveness to a stated City priority of attracting a colocation data center and carrier hotel. ➢ If the Committee makes a recommendation to approve this application, an item to schedule public hearing would be placed on CC agenda for May 20, 2014. to hold the public hearing on June 17, 2014, Job Creation Fund Application ➢ In 2013, the state created the Minnesota Job Creation Fund to provide assistance to businesses forming new jobs within the state by expansion or location of businesses. ➢ The program provides assistance directly from the state to a business, but it does require an action by the host community to confirm its interest in the assistance being provided. ➢ The state has preapproved a JCF commitment to Databank in the amount of $270,000. ➢ If the Committee makes a recommendation to approve this application, no public hearing is required, but consideration of the item would be scheduled for the Council meeting on June 17, 2014 to coincide with the other assistance requests. Tax Abatement ➢ The Finance Committee has previously indicated openness to considering a recommendation to the City Council to amend its Business Financing Assistance Policy to permit consideration of Tax Abatement in specific circumstances related to Council priorities. One of those priorities has been a colocation data center, particularly one that would also be a carrier hotel. ➢ If the Committee recommends and the Council approves an amendment of the City's Business Assistance Policy to permit consideration of tax abatement for specified purposes, it is necessary to define the public purpose through a public hearing process. ➢ In this case, the applicant is not suggesting that a financing gap is present, but that assistance is being requested to incent the location of the facility at the Eagan site. Within the Tax Abatement law, the City may find that a public purpose is present without proof of a financing gap. If the Committee wishes to recommend assistance in this regard, staff recommends consideration of a condition that DataBal-Ac provide a definition of the proposed carrier hotel aspect of the project, which would be vetted by third party experts (the City may choose to ask members of the Technology Working Group or some other party to serve in this role). At some mutually agreed upon time, DataBank would be asked to provide confirmation that the criteria within the definition have been met, as a condition of continuing to receive the tax abatement assistance. If the Committee makes a recommendation to approve this application, an item to schedule public hearing would be placed on CC agenda for May 20, 2014 to hold the public hearing on June 17, 2014, ATTACHMENTS; ➢ DataBank Business Financing Assistance Application on pages_( 5 through $` A Letter from Mayor Maguire to DataBank regarding potential business financing assistance on pages —P - through O ➢ City Council 2014 Goals including references to using public financing to attract City priorities and strategic efforts to broaden fiber -optic access and use on page !!KL, ➢ City Council resolution of January 4, 2011 pertaining to attracting a colocation data center on pages A:�- through . CITY OF EAGAN APPLICATION BUSINESS ASSISTANCE FINANCING GENERAL INFORMATION Business Name. DataBank, LLC Date: 5/5/14 revised Address: 400 South Akard Street, Suite 100, Dallas, TX 75202 Type (partnership, etc.): LLC Authorized Representative: Gene Goddard Phone: 651 -247 -7392 Description of Business: DataBalk is a coloration data center provider Legal Counsel: Address: FINANCIAL BACKGROUND 1. Have you ever filed for bankruptcy? No 2. Have you ever defaulted on a loan commitment? No 3. Have you filed for conventional financing for this project? No, 4. List financial references: a) RBC Capital b) CapSource C) Phone: 5. Have you ever used Business Assistance Financing before? No If yes, what, where and when? PROJECT INFORMATION 1. Location of proposed project: 3255 Neil Armstrong Blvd., Eagan, MN 2. Amount of business assistance requested: 100 percent tax abatement from city increase in property taxes; $150,000 MIF; $270,000 MN JCF 3. Need for business assistance: Lower the cost of development of the site. 4. Present ownership of site: LIBERTY PROPERTY LMTD PTNSHP, 500 CHESTERFIELD PKWY. MALVERN PA 19355 -1427 5. Number of permanent jobs created as a result of project: 30 6. Estimated annual sales: Present: $0 Future: $12 -15 mm 7. Market value of project following completion: TBD __ 8. Anticipated start date: 7/1/2014 FINANCIAL INFORMATION 1. Estimated project related costs: a) Land acquisition b) Site development c) Building Improvement cost d) Equipment e) Architectural /engineering fee f) Legal fees Completion date: 111115 (Also see attached spreadsheet) N/a 15 year lease $3,500,000 $5,000,000 $39,500,000 costs borne by DataBank. (note: an additional $15 -$20 million in equipment will be purchased by clients). 1 Li g) Off-site development costs Offsite costs related to electrical infrastructure is covered by Dakota Electric Association TOTAL: $48,000,000 2. Source of financing: a) Private financing institution $0 b) Requested public assistant funds $340,000 (estimated value of 100 percent tax abatement of new value over 20 years, c) Other public funds $420,000 ($270,000 MN JCF grant and $150,000 MIF forgivable loan from NIN DEED) d) Developer equity $47,510,000 TOTAL: $48,000,000 I am submitting the business financing assistance application and related support documentation for the purposes of requesting consideration of public financial support of my project, I understand that the application fee is non - refundable and that the escrow deposit will be used for City staff and consultant costs associated with the review of this application, The balance of the escrow may be returned if the costs of review are less than the original deposit, The escrow may be partially refundable if the request for assistance is withdrawn. Refunds will be made at the discretion of the City Council and be based on the costs incurred by the City prior to the withdrawal of the request for assistance. If the initial application escrow is insufficient to cover all City costs of review, I will be responsible for additional deposits. SIGNATURE Applicant's Signature: Date: PLEASE INCLUDE: 1. Preliminary financial commitment from bank, 2. Plans and drawing of project. 3. Background material of company, 4. Pro Forma analysis. 5. Financial statements. 6. Statement of property ownership or control, City Staff has agreed not to require the business to pay these fees. This still has to be approved by the EDA board. 7. Payment 'o1- ccppricucrvir2 v.... $1,000 f Supplemental hiformation: Company and project description: DataBank is the leading provider of premium enterprise -class managed data center space for colocation services In the Dallas, TX and Minneapolis, MN markets. Our facilities are designed to provide clients with 100% uptime for all their critical business IT infrastructure. With True 2N power delivery, DataBank's colocation offerings are customized technology solutions designed specifically to help organizations manage their risk and improve their overall business performance. "DataBank is a leading provider of customized colocation solutions and services that are designed to help organizations manage their risk and improve business performance. Our enterprise- class, managed data center services are aimed at providing 100% uptime availability for data, applications, and equipment. Built around world -class data center facilities, DataBank delivers customers a premium environment with the benefit of a multi -homed multi - terabyte Internet access hub, and storage area network. DataBank's comprehensive suite of managed services and unique consultative approach ensure we provide a custom - tailored solution that meets your organization's specific business needs and objectives." The majority of the Minneapolis - Saint Paul regions internet and phone traffic is currently routed through the 511 Building in downtown Minneapolis. Because this one facility manages so much activity, it has become a critical point of failure for the entire region. The proposed DataBank development will not only be a colocation data center facility but will offer state -of- the -art meet me rooms that will allow multiple telecommunication carriers to interconnect and serve as a second 511 Building for the region and will offer redundancy and reliability to the network. DataBank's customized data center solutions allow Fortune 500's and other large companies to invest in their own businesses and not in data centers to accommodate their IT operations. The presence of DataBank's new facility will serve to bring the market for outsourced data center services to Minnesota and ensure large MN -based corporations keep their operations in MN and not to outsource facilities in other markets. Lastly, DataBank's presence in MN will attract users from other markets to the Mpls /St. Paul metro. The DataBank project in Eagan will rehabilitate the vacant Taystee bread facility that has been vacant for over 4 years. The company will be signing a 15 year lease -to -own agreement with Liberty Trust and will be investing $48 million in building renovations .� and new equipment. DataBank will provide managed data center services and will be hiring BO people within two years of becoming fully operational. We anticipate that our clients will invest an additional $15 -$20 million over 4 years. Additional public agency funding sources: In addition to the ask from the city for 100 percent tax abatement the new value of the property taxes for a carrier hotel data center project, DataBank has received a commitment from DEED for a $270,000 MN Job Creation Fund award, and a $150,000 forgivable Minnesota Investment Fund award that will help defer a portion of the business costs for the project. to? Sources & Uses: ` �~ Bank(s) Equity State Local Gov't Other ( ) Total Property Acquisition $0.00 Site Improvement $3,500,000 $3,500,000 New Construction $0.00 Renovation of an Existing Building $4,390,000 $270,000 $340,000 $5,000,000 Purchase of Machinery & Equipment $39,350,000 $150,000 $39,500,000 Infrastructure $0 Other: $0 Other: $0 Total Project Cost $0 $47,240,000 $420,000 $340,000 $0 $48,000,000 ` �~ 6REATEh'ISR". City of Eagan Assistance Mike Magd1re Mayor February. 28, 2014 Paul Bakken Mr, Timothy J. Moore- Cyndeb NOW thlbf P-xecuflv.e Offic6r Gary Han8dn Data: Bank Mag'rllley 400 S. Mad, Sulte4l DO Dallas, Texas! 75202 Council Members Dear. Mr, Moore,. Dave Osbarg City Administrator As Mayor of the City of Eagan, I -submit with great pleasure and pride this proposal for your oonalcleration, In 000pe.yation with the Minnesota Department.& Em:pId.yrn.*0rft and Ebonorhii D0.v6Icfpm'jant, Dakota Electric and GREATER IVIS ' P that-wo'hopeWil result in locating your collocation fadillty- t ggri, It Is my -Understanding your staff has data dontef iii. the 6-ify of EA completed a great deal of'W'6rk to date ,with City of'Eagan staff, giving you a head gtarf . In understanding. -the project. and the gyast amerilties present In the ,tee Municipej, cen Y 'dtd,s City of Eagan, Yet there few outstanding items required In order to 3830 Pllet'Knob Pload finalize your site selection dedision., Eagan, MN 681.22-1810* On January -4, 2011 the Eagan City Gounall unarilm oudlyapproved a. 651.678.600phone Resolution Expre&MV. - Support for an Eagan Oolocatlon Fac , 111fy and Open 651,676,5012 lag, Acde.'8w F/66o.n By adoption of tfi'Js resolution, the Lagon City Coun'.oll affirmed 651,454,85a(5 TDD as a. alty Priority the placement and •construeflon ofa coloOMbh feid-11 ity-Mata canter., and the InstolIN'tfoo anal extension of Oty-awned flbar Infrastructure, gt0hj'. both :are lWthd Pub.116 lht;6tftt and no'd6atity as celelcial infrastructure. Malnt6rfando Fftollity 35.01 06aoWan P6111t. The City of Eagan has Olacdd a hlohi plftrity•on the exparis3dh and attrtiotibm Eagan, MN 6,6122 of data oonitens and ualo-.catlon fadiliftes within th000mmurilty, particularly 05147,5.51,00.phona tho§6 that woUld 66M-010,"iWit bur oWrenrt l.hfohna1fcn­6fdwt§0,d buMnesses 651.: 675.5360 lax- and our Investments. In broadband infrastructure%. Eagan's de0ad0-long 'f0oU8 on broadband, teiChno-1-0-gy and business continuity with local Industry, make 651454.9585 TOD us -a',grsat partner In your future success, We Will ww-k cloodly With Dakbtg Electric and will serve as a oondult for -State funds, should they- become avWlabts, www;oltyofeEigan.com Upon completion and review of a pUblit financing assists(noeapp(joation, and approval from the City.s Ecbn'OM*lc. Devdlopinent.Authotlty, )(0orrip.rWed of the Mayor and -City Couno.11 Members )., I am confident the City Council would 1 favorably oofts.1d6r 1-;00% TaxAbattoirridnitof'tho new tax differential. for up to .20 years, for the Clty.portfon:of. the property tar for a carrier hotel. A carrier The Lone. Oak Tree hotel would be defined as a soourealto Where. data.00mmunicatlans are The symbol of interconnected from num6rout t61606rAMuhlbtWloht and Internet service. strength and growth I . Providers OSP) to minimize overhead and optimize communications efficiehrclet for all parflolpants Involved. Approval of Tax Abatement for-the In our community. II 6remerM' nneapoias Saint::Paul Metro City of Eagan Assistance City portion of the property tax might also be considered favorably, with a formula structured as follows: 75/0 of the newtax differential fo.r a cofoc.atic.n facility, defined as a building designed to -accommodate data rasourcea for multiple bualnesses. 50% of the new tax differential for single user data center. Again, such a.tax :ab.atem. ent program would. need - ap.p:rovail from the .City's EDA and the full City -Council,. but`tho Importance of to:cafi'ng a facility such as you. propose -In ,Eagan Illustrates the Clty`s commitment to the establfi ihment of a co.loca#I.on fboliity in our community.. In .addition, the City of Eagan has Invested over $2.0 million in the installation of•the,Access Eagan fiber network that :covers over 16 miles. within the core business distridt..of Eagan. At our post, the City would be willing to bring Access' Eagan fiber directly into your facility so that your providers can reach Eagan companies. As your staff has experienced with the early work already completed, the City of Ewan has.* a hig. :hly experienced and eff otive stoffthat will give. DataBank's d veiop.rnent and. building plans close attention and .process them promptly, .once com,p.leted .app'licati'ons,. a'ro raoeived.. The fact`that nataBar k has dohe.so mudh Work with Cfty .of Eagan staff to date gives t'h'em a head start.]n understanding the projo.ot.approvals that will. be necessary to allow your oornpar5y, to hit the :adgi.esgive stahedUld ybu: htiva described. In addition to the .spacific assistanoe tha wClty of Eagan oan provide, as noted a15ovb, be asaured.we wlII aupport and ordcess the necessary finetnoial application material O.etaB:ank' may need to-. submit to the State. of Minnesota for ;thel.r business asslstano a and tax - ored.it program .. Furtherm-ore, the city of'Eagan has:a ::great working. relationship with Dakota .Electric, who has always proven to be an .OXtr{omaly reliable proVider of eleotrical ,si: rvioss at extremely .eompetiti've. rates.. e As you, ;can W from :tho Ir orrrmatiun hdludad. in this lotter;. the City of Eagan Is very interested in seeing DaWffank's prpposed facility Locate In our community. Beca:uso of our quality wgrkforae, low government costs* and undlsvatancding of-your projeot'and sVong 15ublto.and privata Infrastructure, we believe Eagan is the beat place-to limit p:ataBknk's risk and increase. your speed to market. You will find •attached a.document entitled: "The Eagan Advantage" which clearly illustrates -the many exceptional qualities of the City of Eagan and our entire community: WV look forward to including D.ataBank In our - story.. Ploase du not hesltata.to abntabt me::lf you should have any questions or would like to di'seuss any contents of this letter in further detall. Sincerely, TIJE CITY OF EAGAN Mike Maguire Mayor C f e p DRAFT—April 18 2014 APPENDIX A 2014 City of Eagan Priorities * Enhance the City's Vibrancy and attractiveness to a broad range of cultures, lifestyles, and generations. Improve the City's physical connections by strengthening the walka.bility and bile friendliness of routes among retail centers, schools, transit, neighborhoods and parrs. Reform the City's Financial Assistance Policy to enhance the City's flexibility and ability to pursue City priorities and amenities. « Encourage partnerships that Enhance the community's identity through public art, culture, and historical preservation initiatives. Strengthen the City's engagement with citizens, and particularly school age youth, to further Improve understanding and participation in local government, Renew the strategic efforts to broaden fiber -optic access and use by Eagan businesses and residents, I� CITY OF EAGAN RESOLUTION NO.2UlI- ©� EXPRESSING SUPPORT FOR AN EAGAN COLOCATION FACILITY AND OPEN ACCESS FIBER. WIIEi REAS, the businesses of Eagan, large and small, have, over the past three years, indicated to the City that their ability to create jobs, to retain existing jobs, and to compete in the global economy is heavily dependent on access to high performance, competitively priced broadband services and a colocation :Facility located in Eagan; and WHEREAS, Eagan businesses contacted by City and the Dakota County Regional Chamber of Commerce also indicated unmet broadband business needs and concern over the high cost of telecommunications and broadband services in the City and that such costs inhibit their ability to create and retain jobs and expand their businesses; and WHEREAS, the Eagan Technology Worldng Group has met regularly for more than four years to identif=y ways to make Eagan businesses more competitive in the local economy and has recommended that the City take all possible steps to encourage the construction of a colocation facility /data center in Eagan; and WHEREAS, colocation owners and operators have consistently indicated to the City that open access and ooniinercifftu —6 of " City= owned "fiber "infrast metme wo be",a significant business location factor for the construction of a colocation facility /data center in Eagan; and WHEREAS, there is a shortage of highly specialized data center, space in thc- Twin Cities metropolitan area, and specifically outside downtown Minneapolis or St. Paul; and WHEREAS, the Eagan City Council, and its Finance Committee,have previously met, reviewed, and endorsed the key strategies for these improvements to occur or be attracted to 'occur in Eagan without delay; and WHEREAS, the Eagan City Council recognizes that achieving its goals will require the commitment of financial resources to achieve its objectives, NOW, THEREFORE, BE IT RESOLVED that the City Council of Eagan, Dakota County, Minnesota, finds that the placement and construction of a colocation facility /data center, and the installation and extension of City -owned fiber infrastructure, are in the public interest and necessity as critical infrastructure, so that we Hereby encourage those prudent measures which come before us to make such facilities and connections occur, forthwith. 0-�A CITY OF EAGAN CITY COUNCIL By: A 6 N 1 It's Mayor Attest: , G(�' aa� It's Deputy Cler1V Motion by: ,Seconded by: 41�Cd:5 Those in Favor: At� Those Against: Na-we- Date: Z 2011 CERTIFICATION 1, Mira Broyles, Deputy City Clerk of the City of Eagan., Dakota County, _da_hereby.certify :t.hp -tthe foregoLng.resolution was _duly pgs, pn by the City Council of the City of Eagan, Dakota County, Minnesota, in aregular meeting thereof assembled this 4th day of January, 2011, Mira Broyles, Deputy 0t), clerk