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199 <br />CONSIDERATION OF CONSENSUS FOR GATEWAY FOODS PROPOSAL - JOHN <br />MILLER <br />Mr. Miller explained that he has asked Mr. MacGillivray to <br />explain to the Council some of the financial ramifications <br />that would result if Gateway Foods decided to locate in Lino <br />Lakes. <br />Mr. MacGillivray presented a brief written outline of what <br />he felt would occur if Gateway Foods built their facility in <br />Lino Lakes during 1989. He explained that the state <br />legislature has restructured the Minnesota property tax <br />system making projections difficult. He did feel Lino Lakes <br />should benefit by this restructure. Mr. MacGillivray <br />explained how fiscal disparities affect his projections and <br />also explained the Tax Increment Finance (TIF) plan. Mr. <br />MacGillivray's written outline included two possible bond <br />issue calculations. The affect on the City mill rate was <br />also shown. <br />Mr. Miller explained that he has visited with Gateway Foods <br />since his tour of their Duluth facilities and one of the <br />company officials has requested information on residential <br />property in Lino Lakes. This official has also driven the <br />freeways checking on travel time. Mr. Miller explained that <br />it is also rumored that Gateway Foods is in the process of <br />acquiring Red Owl. <br />There was discussion regarding three possible sites for <br />Gateway Foods: 1) property on the west side of Lake Drive <br />and south of 35W; 2) property on the east side of Lake Drive <br />and south of Glenn Rehbein's home, and 3) property on the <br />southease quadrant of 35E and Main Street. <br />The Council discussed the possible benefits of locating <br />Gateway along Lake Drive which included some of the sewer <br />and water utility being paid by the TIF bonds thereby <br />reducing the costs to the homeowners. The costs of the <br />three locations were discussed. It was noted that the <br />property west of Lake Drive would be the most expensive and <br />the hardest to obtain. Mayor Benson suggested maybe <br />obtaining property on both sides of Lake Drive. <br />Mr. Schumacher noted that if the 35E and Main Street site <br />were chosen, the availability of sewer and water would be an <br />issue. <br />The offer to Gateway Foods was discussed. Mr. Miller <br />suggested offering the land they need to them for $1.00 and <br />then offer to negotiate the cost of utility installation. <br />PAGE 5 <br />