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Commissioner Graff discussed the outcome of the meeting and other information he has <br />gathered for flexible office space. He has been in contact with Mike Brass at Welsh <br />Companies and there are ways that flexible office space can work. One, owner occupied <br />buildings with excess space to lease and two, a company that specializes in flexible office <br />space manages the building. There are other ways it can work at a smaller location. He has <br />been talking to several local businesses and business owners in the area. <br />Commissioner Graff stated that he would like to invite Gretchen Boyd, president of Business <br />Networking International (BNI), to a meeting to update the EDA on the BNI group. <br />DISCUSSION ON TAX ABATEMENT <br />At the April EDA meeting, staff was asked to put together information for the basics of tax <br />abatement and how it can be used. Staff has included a document from Springsted on the <br />concepts and mechanics of tax abatement. <br />Minnesota law allows cities to grant property tax abatement for economic development. <br />Tax abatement is a temporary deferral of payments for property tax. Bonds can be paid back <br />with abatements. Some qualifications include: <br />• Increase tax base <br />• Provides employment <br />• Redevelopment <br />• Provide residents access to public services <br />• Construct public facilities <br />Community Development Director, Bryan Bear, mentioned projects in Hugo where the City <br />used tax abatement to pay for bonds. He discussed that the regulations are less with tax <br />abatement than with Tax Increment Financing (TIF). <br />UPDATE ON DOWNTOWN REDEVELOPMENT <br />Staff updated the EDA on the progress of downtown redevelopment. <br />The purchase agreement extension was approved by the City Council with FBF, LLC, for the <br />City owned property in downtown. <br />The City owned print shop building will be rented out on a short term lease. <br />Staff continues to help Pete Sampair in completing the Met Councils Livable Communities <br />Grant application for a mixed-use development. <br />NRI continues to move forward with its approved plans for the property. <br />ADJOURNMENT <br />Puleo made a motion, seconded by Arcand, to adjourn at 10:25 am. <br />All aye. Motion carried. <br />