City Council - Regular Meeting

It should be Mr. Brewster, how we got my new assignment and now I can't reach the cord to plug in my last

[cough]

It's serious. Oh, nice.

Up to the want to do that, but it's out there.

Oh, yeah. Good.

Oh, really?

Yeah. I have a dog shirt. She's kind of like

uh this meeting of the Oaklair City Council will come to order. Please stand for the pledge of allegiance to the flag of the United States of America and to the republic for which it stands. One nation under God, indivisible, with liberty and justice for all. City clerk, uh, please call the role. Council member Brewster, present. Here. Johnson here. Miller here. Otto here. Reed here. Shown here. Serrano here. Worman

here. All right. Thank you, city clerk, and and welcome everyone to the Monday, April 27th meeting of the Oaklair City Council. Uh this is a night where we have public hearings and public discussion, and later on uh we'll have a closed session. Um and there is also a public uh comment opportunity later uh right before that close session. So, uh, so we're get for each of the items that come up, uh, we will have a staff presentation and then we will have time for council members, uh, to ask questions and we will have, um, opportunity for the public to to ask questions or to provide u their perspective on the on the three items that we have in front of us today. Um, and you'll everybody [clears throat] should be able to find printed copies of the agenda in the back of the room and also the signup uh sheets. And if you don't end up getting your name on on one of those to speak on a particular item, but you decide later that you want to speak, you can I'll be making sure to open it up after we get through the list of folks that sign up. So um so I will and then you know for each of the items where we go through that list I'll just go through it in order of those who signed up. Um and you'll have four minutes uh to speak um up to four minutes I should say. Uh and there will be a lighting system up there where that will help you realize when you have three when you've used 3 minutes and you have 1 minute left. So, it'll turn yellow at one minute left and then it'll flash red when you're out of time [clears throat] and um but but you may want to stay at the podium like after you're done speaking just for a little bit to see if there's any council members that may have a question for you. Um so, just so you know about other options for reaching out to the council,

[clears throat] there are um there are blue comment forms in the back of the room. And there are and on the website you can find emails for council members or use the electronic comment form on the website. Um and they can find that on oakwi.gov. So we have so that's kind of some of the housekeeping uh there and we have so the first item that we have on our agenda it's under the the public hearings uh section is uh is item number one a public hearing on an ordinance amending specific sections of the code of ordinances of the city of Oaklair title 17 land development officials zoning map in title 19 storm water and uh we have planning manager Ned Noel here to to walk us through this and answer any questions. So, thanks for joining us. Uh Mr. Noel.

Yes. Uh good evening, Council President Gregor. Uh congratulations again. And council members, good to see you. Um so getting used to your rearrangement of um so we have before you uh a cleanup ordinance which is uh over 60 amendments uh to our land event development ordinance. We've got u six months of implementation of this new uh ordinance which is that thick, right? So we knew that there was going to be some glitches and omissions and things like that. So, um, we've been working on that and the plan commission reviewed this, uh, April 4th and recommended unanimous approval on, um, all the items there. And then your meeting was, uh, postponed, uh, because of bad weather. And so, you have this public hearing tonight. And so, before you, there's a lot of, I'm not going to go through all of them. I've got a couple highlights. They're not exciting. Um, but let's go if I can get the power. We'll go through the the larger. So, when we when we did the reszoning of uh all the properties in the city, we found a couple errors after the fact for uh storm water ponds that the city owns. And these are zoned residential, but we found that they should actually be zoned Public consistent with the ownership with the city and also the land use, which is storm water. So, pretty straightforward. We had some inquiries from the public around there and they they supported the fact that there won't be develop development um more in this basin area uh along Taff Avenue. You can see where it was vacated back in the day for storm water purposes. So, good support there. And then, so these two properties are owned by the city. These properties here also zone residential. These are owned by Excel Energy by Dell Dell's Dam. And there's transmission

line in there. And then also these small little remnant parcels part of Putnham Park uh owned by the university. So we talked to them. They're supportive of these reszones, the Public again being consistent with the park for the university and then uh the transmission line along that open space for Excel Energy. So pretty straightforward, just cleanups with the zoning map. Uh so there's those properties as part of the ordinance amendment. Um getting into the text changes now. Again, these are um more the mechanics behind the code. We knew that there's going to be some glitches, omissions, and things like that. In your cover sheet, there's another one that we added. We uh missed the definition of top of bank for a river in terms of delineating a setback. So, that's in your cover sheet. So, uh tomorrow if you vote on the item, just wanted you to add that amendment to the top of bank definition. So, I call that out in your uh cover sheet. But just going over two slides of these amendments. Um, and if you have any questions about other ones, we can answer them. But section two really looks at a table and it's in your packet regarding building design, cladding materials, windows, and we wanted to make sure that that was all consistent. The the glazing basically the windows doesn't follow the same triggers in terms of requiring windows uh as building cladding. So, we wanted to revise that so it's consistent with cladding or with windows being only uh required when it's actually impacted on the site in visible locations rather than requiring the whole building because sometimes adding punching in windows in different spots are going to cause some structural issues. So, we think that's very practical. Section five is dealing with um some omissions regarding single family houses that we allow single family houses in

new configurations called tiny tiny uh tiny home uh courts uh um cottage court arrangements and those weren't actually noted being allowed in these low density residential districts of general residential and neighborhood residential. So those were omitted. This would bring them in, allow them to be permitted land uses within those low density residential districts. And then also um we uh omitted some different provisions related to when for mixuse uh for commercial uh when it's part of an apartment building. We wanted to have more mixeduse properties, but we actually didn't have all the standards listed there. So that brings in a bunch more standards as it relates to restaurants. if you put a restaurant in an apartment building, an office, um other types of personal services like a sal hair salon. And so sections 9 through 12 uh list out all those criteria. If you meet those, then you're allowed to be sort of a secondary land use within the primary land use of that apartment building. So those were also missed. We brought them in sections 9 and 12. The other uh three highlights here just to call out is uh for for landscaping requirements. We have more stringent and objective landscaping requirements for development for one and two families. Uh we we don't we didn't specify in the accountability of it that it would be uh required a two-year letter of credit so that they would the builder would give us like an escrow account, a check or a letter of credit so that we could make sure that the landscaping was done properly after the two years or the initial install. And that's that's a lot on the building the builders. And so we actually have a different trigger we can hold up through the certificate of occupancy. And so we

added that in there rather than uh requiring this landscape uh letter of credit. So again, there's still accountability there that the city can use if those materials if those planting materials weren't added in. So that just clarifies the policy in that regard. It doesn't say one and two, it just says all development. And so this this makes it more clear for section 33. Section 42 gets into um again we wanted to cluster subdivisions, more compact development, reduce land costs by clustering, but we didn't actually um reduce the land lot sizes for those clusters. And so this brings in uh an allowance for some reductions of thousand square feet for uh these lots when they're clustered uh in a green court because the green court has more of a green space that they all can share. So you don't need as much lot area within the ind individual lots and then also a little less when it comes to these uh carriage courts in section 43 which uh carriage courts are basically sharing a large driveway and then small driveways come off the carriage court. So you do actually use a bit more land with all those different driveways. So the reduction is a little bit less there because you still need a little more land for these additional driveways. So again, just tweaking the ordinances, trying to make them work better for practicality sake. Um, based off of our conversations with the development community, builders, homeowners, as we've worked and we continue to find these things and you'll have another batch at some point. Our our new habit that we'd like to get into is usually towards the end of the year, we'd like to bring more amendments to you, glitches and things like this, emissions. Um, this batch right here, we're just trying to stay away from major policy decisions because you just went through all of that and it's only been six months. We're trying to live with it. Uh, but these things kind of

help more the mechanics of the day in day out implementing this code. So, with that, if you have any questions of me, there's other ordinances, too, but I'm trying to save you guys some time. Well, thank you, manager Noel. Um, appreciate all the diligence on this. Uh, looks like we have one side of the council has some good questions and I didn't keep track of the order that those lights went on, but I'll start with uh, Council Member Serrano.

Thank you, Council President Krager. Uh, thank you very much, Planner Noel. Um, I have a more general I really appreciate all of this and all the work that's done. uh all the tweaks make sense and and um I I appreciate the the staff summary that you gave us. Um can you comment on how it's going? I mean, I know these are like um mechanical things, if you will, of this needs tweaking, that needs tweaking, but we had a big uh aspiration with this uh sentry code update of, you know, really shifting how it all works and all of these, you know, uh permits and such and permissions being given by Wright.

How's it going? Yeah, I think it's it's going great. Um these are things that we've identified that it can go better. Um, and so we want to we want to tackle those glitches right away, omissions, and make sure that we have a a strong code. Um, but overall, I mean, I think we're proud of it as staff. I think you guys are probably proud of it in terms of all the work that you put into it with the Zpack. Um, you know, developers, I think everybody the learning curve is high. We're all getting used to it implementing it because it's it's different. Um it's got some different approaches with more by right as you mentioned, but overall um I think we're we're eager to keep implementing it. So, thank you. Thank you.

Thank you. Um Council Member Brewster. Thank you, Council President Gregor. I have a question about the section 33. Um, like does does it give us the same amount of leverage that a two-year letter of credit would for the certificate uh certificate of occupancy? I'm assuming most builders would not want to have their building sit for two years uh empty until they can fill it. So, how do we how do we um like ensure the the landscape requirements are met over that period of time? Is it something that we can revoke if they don't

or is it sort of one of those things once it's issued then you know we're we've kind of issued it and then it's then we're just like well please do this.

Yes, great question. Um the certificate of uh occupancy is coveted. So they're going to they're going to implement that landscaping to be able to have that homeowner occupy that dwelling. So, it's a it's a major trigger to be able to get them to come good on what they're supposed to do. Now, we will sometimes issue working with inspections a temporary CO and that allows them if the weather is bad for planting to give them six months. This is very customary in in the in other jurisdictions that they'll use that as leverage. We just thought with these one and two family units, it's a lot of extra kind of burden on the builder or the homeowner having to go to a bank, get a letter of credit, pay interest on that. When you're talking about a bigger project, you know, a large development, you're talking about a lot more money at that scale and there's a lot more landscaping that's being planted. Uh, and so this is probably rightsized. Uh, in terms of um the one and two units. Also, we checked with engineering and inspections. We're not seeing problems with this in the first place and so it's not we still have this trigger with the certificate of occupancy there as leverage if we need it. But again if if we're seeing problems we can come back to you and say let's reexamine this.

Thank you very much. All right. Thank you. Um Council Member Worth. Thank you Council President Gregor. Um planner Noel. My my question was along along the same lines. If I remember why we went with a two-year letter letter of credit, which I think we were even contemplating three-year letter

was so that one of the things our city forester mentioned is that a lot of times with landscaping, especially with different trees, there's a loss over the first year, couple years, you can see up to 50% loss over two years of your trees. And so we wanted to have a trigger that basically um allowed there to be I think full integration of landscaping requirements before it was lifted. This seems like it's kind of going a different direction in policy um and saying uh we'll we'll be able to basically check on it after completion of the project. But that was the reason when there was a buffer there between doing it through occupancy versus a letter letter of credit.

Yeah. The Yeah. The the original proposal was three years. Our our consultants had recommended working with the development community. They wanted 18 months. We settled at two years. And so that's why we got the two.

Um the the ordinance as it states, it doesn't it doesn't get into one and two units. It's just the whole the whole um development. And so again, based off of our understanding with um securing these letters of credit um you know, it just adds a lot of extra cost on, you know, for affordability sake when it comes to these one and twos. And so this is a bit more um there's still teeth there to make sure that they plant the materials uh working with inspections, but it's not requiring that additional

um escrow or or you know whatever that that amount of that landscaping would be. And so it is it is bit of a clarification of the policy I would say. Yeah. Um, but it is up to council in terms of what you'd like to do. Overall, our policy was really to try to treat one through four units a bit less in terms of like extra requirements with cladding and different rules. And so this follows that overall policy approach is kind of let that be. Um, I think you had remember if you waved existing one and two family units for tree preservation

as well. So it follows that sort of general policy. So, if I could clarify, council president, so um other developments, commercial, industrial, etc., they're also going to have a letter of credit, correct? Everything else, including three and four units, would be subject to the land letter of um sorry, the um the two-year letter of credit. Oh, I I think I misread because it says one through four unit. I'm sorry. You you're correct. One through four. One through four would be in a separate category. Everything else would be different. Okay. Thank you. All right. Thank you, council members, and thank you, um, manager Noel. Are there any other questions from the council?

All right. Um, well, I think we could move on. Let's see if there's anyone who has signed up in the back uh [clears throat] to speak to this item. Okay. So, it doesn't appear we have anyone who has signed up, but does anyone in the gallery uh in the council chamber wish to speak to this item? You're welcome to come up and speak. All right. All right. Thank you. Um we'll move on uh to the public discussions on the agenda. Uh and this is kind of under the broader category of parking prohibited. The agenda item two is reads uh the public discussion on an ordinance amending table 8 entitled parking prohibited of the code of ordinances of the city of Oaklair to add parking restrictions on venture drive uh for business access and vehicle maneuverability. Now that's a word. Um and director Ness uh is here to present on that as our city engineer. Thank you so much.

Good evening. Uh, President Gregor, uh, council members, the ordinance changed before you tonight, uh, would restrict parking on Venture Drive, uh, near the northern driveway of the business located at 5529 Venture Drive. Uh, it would maintain access to the loading dock for that property. Uh, this in general, Venture Drive is a local street. It is located within Gateway Northwest Business Park, uh, which is north of State Trunk Highway 312 North Crossing and east of County Trunk Highway T. Um, historically, engineering has reached out to the police department uh to discuss enforcement side of parking items. Uh, we now also reach out to neighborhood services for enforcement side of things. Uh both departments agreed that this would be um an appropriate location or ordinance change. Uh so they agree with the recommendation. Um and from the engineering side of things, when we did look at this, we looked at the safety uh related to the access of this business and then also those parking near this access point. So we believe that it will improve the safety uh along this stretch of venture drive for for both the business and uh those individuals parking in this area. Uh this was brought to our attention by the business um related to uh activity within the area. There's another business that has a large sale that generates a lot of parking along Venture Drive. And so this is really

only an issue a couple times um or periodically. It's not a daily item. Uh but this will definitely help access uh maintain that access during business hours for this uh business in the Gateway Northwest Business Park. I can take any questions if there are any. All right. Thank you, Director Ness. Are there um any questions from council? All right. Well, thanks for your presentation.

Uh, are there is there anyone who has signed up in the back? Okay. So, would anyone in the gallery who who did not get a chance to sign up like to speak to this agenda item? Welcome to come up to the podium. All right. Uh, so we can move on uh to the next item under public discussion which is a development agreement. Um this is item number three. Uh public discussion on a resol resolution authorizing the city manager to enter into a development agreement with ABF Ingredients North America Incorporated regarding city support of a new manufacturing facility in the Gateway Northwest Industrial Park. And we have uh Director Aaron White here. Thanks for joining us.

Thank you, Council President Gregor and Council members. We are very pleased to present uh this resolution before council. This is a project three and a half years in the making at this point in time. Um you would have been introduced to it as project Aurora and actually prior to that as project synergy. Um we are now able to identify that ABF ingredients North America Inc. is the project that is looking to purchase some development space within the Gateway Northwest Industrial Park. the project overview. Um, ABFI, a world leader in in their industry sector, which is biio manufacturing, uh, is looking to build a biio manufacturing facility in three phases. The parcel they're looking at is a 70 acre parcel within the the um northwest or the gateway northwest industrial park facility will produce components from fermenting yeast that are sold as raw ingredients to a number of industries including pharmaceuticals, neutrauticals, vegan food additives, and a variety of other industries. Uh the project including all three phases anticipates a $270 million capital investment uh and creation of 90 to 100 jobs that are estimated to pay in the the range of 24 to $60 uh per hour. Uh these are highly technical jobs. These facilities are very automated today. So it's uh not the massive employee counts, but it's very technically trained and well-crafted position. So we're excited to see this type of of industry come forward. The parcel in question provides room for potential future expansion within the within the district. Um project anticipates water use of 200,000 gallons per day and sanitary sewer discharge of 199,000 gallons per day. Wanted to touch brief based on this briefly because this was a uh something that council had addressed specifically through resolution uh a couple years ago following a project that came forward. Uh the council passed a resolution in 2023 um specifying that uh they would want to

review and through development agreements or etc um have some level of control to address um projects that would take up more than 10% of the gross capacity of the city's water system or 2% of the net capacity of the city's water system. So to to specify we ran the numbers on this the uh project would be about 12% of that threshold number of 10% gross. We have 20 million gallons per day daily capacity through our water treatment. Uh and 1.7 million at the time of per day gallons per day at the time this project was set would be that 10% threshold. This project uses 200,000. So they are just at 12% of that threshold established by council in 2023 on the um sanitary sewer side of things. Um that difference is um 200 million or excuse me 199,000 gallons of distribution. Um and our capacity open capacity within the the system is roughly 5 million gallons per day open capacity within the water treatment. So this falls within the parameters that we've established. A few other just numbers to kind of put the math into perspective. Uh that 200,000 gallons per day represents 01% of our plant capacity. The um thousand gallons of net use represents just 0003% of the council's threshold for net water use. So it is very small project in terms of scope and scale. We looked um just because there were some questions about that. We looked and ran the uh utilities ran the top 10 users. The annual use of the top 10 users of water ranges 19 million gallons per year on the low end to 197.9 million gallons

per year on the top end. Uh this project will come in at 73 million gallons per year. So um it just edges out the current third place user which is American Phoenix. Um and it is um just over half the rate of the next um user up at 130 million gallons per year and it is considerably less than half of the top user in the community which is Nestle USA Inc. So it puts it a little scale in perspective. Um the others are in the 40s range, one in the 30 million gallon annually range. So it is well within the parameters of the users that are in the community. Going a little more specific, this is the location that we're looking at within the industrial park. Uh that is county. The 70acre parcel is that roughly large square piece in the center. Um that has an odd kind of a shape goes into there. Um that connects to County Line Road. It borders County Highway T on the west. That is a 70acre parcel. Again, it it offers growth for the company moving forward. um zoned light industrial so it is correctly zoned for the use and site will have access coming off a venture drive extension. The next slide shows what we are proposing for the venture drive extension and the outlots that will be created. Um that drive venture drive extension will actually serve access to three interior lots. So this is not just for one project. This actually will serve a number of the development lots within that space and also provide access towards the regional storm water detention that's identified in the upper leftand corner. Um because this area drains a large amount of outside property drains into the space. City policy is that um regionally drained parcels are managed by the city and and owned and operated by the city. So this will be a city managed parcel. We are looking at um let's see there we go. There we go. um a few key points of the development agreement. Um at this

point in time, maybe I'll kick back. Any questions on the site, either the the raw location or some of the proposed infrastructure extensions? We'll kind of address these as we go. Yeah. Thank you, uh Director White. Um looks like we have a question from Vice President Shan.

Thank you, Council President Gregor. Excuse me. Yes. Sorry, I thought I mixed it up, but you're so new. I said it right. [laughter] Um, so I you touched on the the questions that I've been getting constituents. You already covered several of them, but related to the sighting. Um, one concern that I heard that hasn't been addressed yet is the odor associated potentially with this type of manufacturing or production. Could you just talk a bit about um the land use surrounding, maybe proximity to the nearest residential parcel um or anything else you could offer in response to that concern?

Certainly. So the site surrounding is industrial. Uh it's all industrial to the south. This is on the northern edge of the industrial park. To the east is an open field of residential or not residential but a land. And there is uh maybe half a mile to a mile away is some of residential spaces that coming off of Jeffers Road and just to the west there. Um to the east or excuse me to the west on the other side, Country Jam is in the northeast corner just out of view and that's miles of farmland. There are a couple of rural scattered sites in and around the area. There is um on the right on County Line Road right on the corner, there is a one hold out. It's the one house that chose not to sell to the industrial park when it was developed. Um it still sits there. Uh the facility does a great deal to control odor and that was verified and confirmed on our on our tour of their facility in Hammer, Germany last December. Um they intend to be a good steward of that. It's also one of the requirements is control of odor and light pollution as relates to light industrial. Um anything that's beyond that would or required heavy industrial zoning. So this is identified and appropriate use and should not be of a concern to any of the surrounding areas which are all industrial in nature. And we talked extensively about this. Some of the other users in the park have products that could be sensitive to odor. So um the the view was that this will not be a concern to them as well looking at uh what the operation is and what it entails.

Thank you. A question from uh Council Member Worthman.

Thank you, Council President. Um Director White, I just want to follow up on that question. Um, and and so I I understand the immediate zonings surrounding this area, but I I think it's worth noting that within a half mile is a residential area, what looks like maybe a roughly a half mile. And I bring this up because um I just want to make sure we get it right from the beginning. You and I both communicate a lot over the last five years as American Phoenix worked on um uh bringing their odor from from their factory under control because it was something that impacted the neighborhood. And I just want to make sure from the very outset that we're saying if you live in the neighborhood downwind because that's the neighborhood that's there off Jeffers Road is downwind. it's um to the east that that they won't smell anything that would change the quality of kind of the the the experience of living there. And I just want to be sure that we're we're kind of clear that that's not that will not happen from this.

Correct. They should not notice any difference. I will reference in in my past life on the private sector. I worked for Cargill International. Um when you think of corn milling and corn fermentation, that's a lot of times what people come into mind. It's what's done when you're talking about processing for ethanol, processing for the variety of products. It is a very different product, a very different process and a very different odor that comes out of that. So, this is this is a contained system. Um, it is highly monitored, highly regulated, and their facility is very enclosed to make sure that this stays very compact. When when we did the plant tour in Hamburg, it's in a very dense commercial and residential area, and you didn't know it was there until you actually stepped into their doors,

and it's in the middle of a city of 2 million, or I believe 2 million is roughly what the population is. All right. Thank you, uh, Council Member Miller. Thank you, Council President. Um, Director, you actually just kind of went to I was going to ask you, you mentioned you went on a tour of the Hamburg, Germany facility, and I just pulled them up, and there seems to be apartments 100 feet from the residence. uh from the factory to the residents. So you just now said it, but there was no odor impacting them even within 100 feet. Correct. There was there was noticeable. It was nothing noticeable as we walked around. It is a well-run operation and it is intended to be a good partner and a good neighbor and a good community member. Okay. Thank you.

All right. Thank you. I know you have more to your presentation. We should continue. So next I'm going to kick into some of the the key components relates to the development agreement. Um first we are looking at the infrastructure extension. Um that' be venture drive extension and the the utilities that will go with it. Those are um finishing the engineering process as we speak. Again we are looking to utilize this extension to serve a number of parcels and projects within the development. It has been standard practice in the Gateway Industrial Park to fund the infrastructure extensions through tax increment districts. The older district was funded primarily through TID 9, which is closing out with a positive balance. So, it did what it was intended to do. This particular district will fall and be financed through TID 15, which is a newer district. It has capacity and we will um look to do those extensions that will serve this site through the uh through the TID extension and TID funds. There's also a direct assistance payment to this project. We have done that in projects in the past. We've primarily seen it through um ind or excuse me residential projects. Some of the mixeduse projects like P&R Properties um Paragon um some of those they are looking for assistance to um do the development. In return they're looking at a 56 million guaranteed value and they are looking for 5.6 6 million in assistance. So it stays consistent with our TIFF policy and the 10% of guaranteed minimum valuation that we have implemented in a number of projects in the past. This will be occurring over three phases. the first phase. Um, I should probably start out that the the project was reviewed by our finance department and the financial consultants and was deemed to be meet the eligible requirements for the state and the offer falls within our TID policy as as approved by council in 2016. Phase one is a $1.4 million assistance and that would be the only

upfront assistance um for what will be about a $14 million guaranteed value on that phase one. Um it will be paid in three installments. Uh once benchmarks are achieved in construction, the installments include um permits are issued for the proh. They have achieved 20 million in construction improvements verified through submitting of receipts and then occupancy of the overall um operation once construction is complete. Um payments [clears throat] are paid as those benchmarks are verified by city staff. phase two that was supposed to have been removed. I'm gonna skip that slide. That was a that was a slide from a previous proposal that was I I stole this presentation from. So, um that was a little bit a mistake slide. [clears throat] The second phase is through the payo process. And again, that means that it's not an upfront payment. They will pay out of increment as increment is generated by the community or by the the taxes paid within the district. Um the payo is contingent on the city receiving sufficient actual tax revenue funds uh to support the tiff investment. Annual installments available increment of phase 2 would be $3.2 million for the phase. Again that falls within the 10% of guaranteed value um ratio that we have maintained and has similar benchmarks. um timeliness to the city of an intent to begin construction anticipated to be um December 31st of 2030. Um obtain permits, perform the construction to appropriate standards for um construction standards and building, you know, building inspections. Um complete the occupancy anticipated by um December 31st of 2032. So again, these increments are paid out through the PGO process as they meet these benchmarks and verify those. I will point out that these are some

longer phases than we have seen on projects past. And reason being is is these types of structures are a lot more complicated as a manufacturing facility. You're talking about millites, pipe fitters, plumbers, welders. It is a much more technical build. It's not a a big open warehouse space that everybody just moves their equipment and sets up. There's a lot more integrated to it. There's a lot of plumbing plumbing and piping. A lot of power goes through that. So, it's it's definitely a more complicated structure and it it's longer in phases to construct. The third installment um would be um a final million dollars contingent on again meeting the following benchmarks timeliness to the city that it's going to begin construction of phase three anticipated to be uh start time in 20 uh again December 31st of 2034 obtain permits perform the construction completion occupancy anticipated by December 31st of 2035 million total in guaranteed value, minimum guaranteed value for 5.6 million in overall assistance across all phases. So that is the u the crux of the agreement that we're looking at. The the agreement also specifies if they were to stop in phase one. Um the road extension will also then be um there's a a way to address that within the contract that addresses if the phasing should stop at phase one. At this point in time, I'd probably point out um the company does have a parent corporation that has to approve all the phasing. So, their company had their parent company has to be able to make its stamp of approval on each phase, which is why there's that language built into the DA. Um they are comfortable and confident that they'll move forward. This project was built to be all three phases. Our workings with the company over the last three years feel us comfortable that the project will move forward at all three phases, but there isn't that option. and they could stop at an earlier phase and the

assistance that's provided will be um adjusted accordingly based on that. Any questions on the basics of the development? So, I saw Council Member Miller was first. Thank you, Council President. Uh Director White, um you mentioned that these uh timelines are longer than we typically see. We have dollar values set here now in 2026 for paying out in 2030, 2032. These are set dollar values. They don't get adjusted for inflation or CPI or anything like that. This is the actual [clears throat] dollar value that would be paid out in the future. Correct. Okay. Thank you. Right. Thank you, uh, Council Member Worthman.

Thank you, Council President. Um, regarding, uh, as you, as you explained, each phase kind of has to have get an approval. Um, but the city also has obligations between each phase for buildout of infrastructure. So, if a phase doesn't go forward, um, as I understand it, there's a penalty of some kind that is paid to the city. But does it cover all the potential infrastructure investments that are done for that given phase as well?

Correct. The penalty that is listed in there is defined to recapture those in the same process that we would any other new project had we just simply built a facility and asked for extensions. it is predicated on their space. That road is also served by other developments. So it is built in that fashion. Um our analysis estimates that the the phase two will cover the costs. So the phase 2 extension will address um the funding as it's provided. Okay.

And it is again it is anticipated to finish positive if no other development occurs in the TID and TID district. The TID district also includes the Country Jam area um spaces on the west side of County T um as a standalone. It's anticipated to recover its its investments over the life of the TID. That makes sense. Right. Uh Council Member Brewster. Thank you, Council President. Um I might have missed the dates on there. Um when do they would they anticipate construction for phase one beginning?

Uh to start fairly rapidly. Fantastic. We have we have actually had some pre-development meetings looking at some very very preliminary preliminary site plans uh last fall and last summer. So the intent would be to move forward quickly. [clears throat] Thank you. Oh yeah, city attorney Nick

just jump in on that one and actually the the prior uh so both are accurate but just to put a finer point to it on the last question it's section 3A and it's called to start in 2026 so commence commencing this year uh breaking ground and beginning construction and then you're always seeing those end dates at the end of the year uh construction may very well end earlier But we've always drafted those as year end because the date that matters most for valuation is January 1st. You're looking to see that they're complete and that they have occupancy before the end of the year and then full tax value is required as of the next day on January 1 of whatever the given year is. And just to put a little more clarification to council member Worthman's uh question, uh should the initial phase be done, it's a $1.4 $4 million developer incentive, but it has a $200,000 clawback provision if phase two is not proceeded with. 200,000 is not sufficient to cover all of a venture drive or storm water facility, but it's an approximation of the cost and benefit for this particular parcel, but those projects benefit other parcels as well. So, not only do we both anticipate that phase two will occur, but should it not, Venture Drive being built out is still beneficial to not only this parcel, but a handful of others, as is the storm water facility.

Yeah, thank you for the additional uh detail and we will go to Council Member Serrano next. Thank you, Council President Greg, and thank you so much, Director White. Um, I looked at the packet pretty thoroughly, but I didn't see, and maybe it's because I don't really understand uh how the gateway is um set up to begin with, but the 70 acres of property, is that going to be purchased by this um by this company? And how where does that fit into the financial uh the math here?

Certainly. So, Gateway Industrial Park has a Gateway Industrial Park board that oversees and has ownership of the all the parcels. It is a three um three member board that governs that. The city is a partner. Excel Energy is a partner and the EDC um they were an initial investor when the EDC's predecessor organization was set up when this lot was when the industrial park was originally set up. So, they are the owner of the land. they are selling the the parcel on a separate contract. Um, typically they incorporate language that makes it contingent on approval of assistance from the sound. So, should this not go forward and the project not go forward, the land would revert back. I have a small followup.

Yeah, please. Please. Uh, so, uh, are we disclosing the what that property is being offered for sale for for this particular and I would does would the city get a third of that? It stays within the Gateway Industrial Park. Um the city in XL when they established it had a loan and you actually approved at the last session I believe um a continuation of that of that note that initially established their ability to purchase land.

So their revenue that they generate from sales stays within the Gateway Industrial Park Board. The asking price is $35,000 an acre. That has been the asking price for the that industrial park for years. And there are an opportunity for some land credits based on job creation or capital investment. Those will be determined once the project breaks ground and moves forward. So there's some potential from from assistance from the and they simply write down the land to a certain point. It's not a cash credit. Thank you for that. All right. Thank you. Um Council Member Emboga. Thank you, CO President. [clears throat] For me, I would like to to talk to the developer or the CEO of of this organization.

Director White, do you want to just share who's here in the audience? Absolutely. From partners and the developer. Then the the Let me advance to the next slide. Um Luke Hansen, the executive director of the EDC was going to um talk a little bit about some of our interactions and the process of this. Uh we do have two members from the OIE team in the audience. They are project managers that are in the area. They are local. They're not from the parent, you know, they're not from Germany, but they're from the local area, but they are employees. They'll be available to make some comments and answer questions as well. [snorts] If you would like to answer now, you can certainly would you care to stand up, introduce yourself, and and they have a council question for you. Sure.

Uh my name is Alex Jasper. I'm the site manager for Oolie um uh at our our site in Boyceville. Yeah, thank you. [clears throat] I have this curiosity question. sound French and uh this company is from Germany. How did you guys land in OK?

Yeah. Yeah, that's a good question. Um so, uh company was founded in Germany 1836. Uh originally making schnaps, believe it or not. Um uh the the facility in Boyceville was here for a very long time. I think that was also founded late 1800s. Um so Oie acquired that facility some years ago. Um and we just we really like this region. Um uh and so as we grow and develop, we wanted to stay in this region. Um in particular, what we like about Oaklair is its support for business and industry. Um you know, your ability to support a project of this magnitude. Um and then also, you know, some of our uh sustainability objectives, things like that are in pretty close alignment.

Thank you. Yeah, thank you, Mr. Jasper. Um, and we can always have you come up more later for sure. Thanks so much. Um, so, Council Member Otto has a question. Thank you, Council President Greer. And this could either be answered by by yourself or members of the company. When I saw the map on the council packet, I noticed how small the facility is compared to the parcel that's being sold. And that makes me wonder, has there been much talk of future growth? I know nine years out is a pretty long time, but um do we have any sense of what what other growth might happen after this facility is built?

Yes, there is a lot of discussion relates to that and uh director Hansel will be able to answer a little bit of that at his pres presentation as well. But let's just say that the initial site search was about 30 acres or so when they saw the potential the community that purchase grew to 70 and there there is an interest there. So um at this point in time if if there's only immediate questions for me and I'll be able to answer additional questions. Oh yes, council president.

Yeah, council member Worthman. Um this is another question related to the agreement and I would say um kind of the security for the community and for taxpayers is around the direct assistance of 1.4 4 million um for phase one and I think helping I don't know if I saw this in there I don't think I did but what happens if um number [clears throat] of jobs created and and other benchmarks say for example we have see a big downturn in the economy we don't see 90 to 100 jobs created and and the other benchmarks uh is there a does that 1.4 4 million then come back to the city if those things are not met. I think you said it does, but I just wanted to double check that.

Um, not when it comes to like the job creation. Those are those are included as kind of a reference to the scale of the project. What they're looking to do and impacts the our benchmark specific are tied to valuation, the minimum guaranteed value. That's what our TID policy is built around is is required guaranteed values based on I see taxable value. We always include um size of the facility, you know, reference to wages just to give an indication of scope and scale, what else is going on in the project, but it's just valuation. Yes. All of our all of our safety benchmarks are tied to the valuation. Okay. Yeah. Thank you. Um and I, as I understand it, phase one was estimated 25 jobs as well. Is that correct? As opposed to the full amount.

Correct. There's a there is a range that's in there. And each each phase has its own job creation tied to it. at then the third phase is is when they will reach the 90 to 100 anticipated jobs. Thank you. Um Council Member Worthman, do you have anything more? No, it's okay. Thank you. At this point, I'll turn it over to uh Executive Director Luke Hansen from the EDC to talk a little bit about uh um some base governance issues relates to the company and and and then we'll still have additional opportunities for questions. All right, Mr. Hansen.

Yeah, welcome. Good evening, council members, and thank you for your time this evening. Uh, just I'll keep it brief. I want to just share a little bit about our experiences with the company over the past three and a half years on how they've acted and reacted to things that are going on within the Oaklair area. Um, just overall their Wisconsin operations. They're not Oolie is not a new company to Wisconsin. They do have their Boyceville loca location. So it's only a new to a new project to Oaklair in itself. The company currently has its facility and has been a very proven um community partner in Boyceville and they they continue to look on and advance on that community partnerships here within this community. Um currently we're in the planning process uh for or with the company. The company has interest in creating uh they're calling it a a communitywide barbecue just to for the community to get to know Oolie and how they want to be seen in the community and how they will react to the the partnerships within the community that they want to create. Uh that will be taking place. We're trying to schedule it mid June mid June sometime 16th 17th area. uh you all will be invited to that of course but uh we're we're in the planning process just to show their their community support. Um then I want to touch a little bit about their corporate policies and their sustain on sustainability. uh they very much believe in doing things right and doing it and that is ingrained into their core of their organization. Oie is a leading manufacturer of specialty yeast extracts, yeast based flavors and dried flavor ingredients based on yeast derivatives and spray dried condiments. That's a lot. But it's uh we've after touring their facilities in Hamburg, Germany, they have done an exceptional job at keeping uh there is it's basically odorless except for I think one room that we were in and it was

minor. Uh the only thing that that was in it was in when packaging and shipping, but their their facility was uh state-of-the-art nonetheless. Um, Holi is currently has a plan to be completely carbon neutral in their Hamburgg facility by the year of 2030. It's a lofty goal, uh, but they are well on their way and they fully intend on meeting that goal uh, in by 2030. But the company also plans to implement many of those same processes and controls here at their Oaklair facility to be as close to carbon neutral as possible and will meet the carbon neutral goals by 2050. [snorts]

Um just a short touch brief on the project process and their corporate interactions over the past three and a half years. Oie's leadership team and staff have been nothing but ex but exceptional to work with. They've been very responsible responsive and forthcoming uh with all of the information requested for our community development agreements and many more items when it comes to the gateway industrial park and land negotiations. uh with their numerous visits to this community over the years, they feel that their cultural values very much align with Oaklair's cultural values. They want to be sustainable. They want to be a community partner and they want to see growth and they feel that this is the great wonderful place to do it, especially in partnerships with our university and our technical college to really advance those jobs and that workforce numbers. And then but having the privilege of touring their facilities in Hamburg, Germany alongside some of our community partners at the city as well as the partners at the state of Wisconsin. We feel very privileged that they consider uh this site for their state-of-the-art facility here to be located right here in Oaklair, which it could be going really anywhere in the United States, but Oaklair is their their primary choice. Oaklair was chosen out of uh numerous communities in not just in the state of Wisconsin, but they were also looking throughout many communities in Iowa, Indiana, Nebraska. So, we have technically won, right? That's that's the goal. We want to get them here. We want them to grow here. But they chose Oaklair for a multitude of reason. But as a broad statement, they believe that Oaklair is a community where this company can find success for their sustainability goals, their workforce objectives, as well as reducing environmental impacts throughout the globe. So we we at the EDC are very much looking forward to their contribution into our community and becoming a large

community partner in the years to come. Thank you, Director Hansen. And uh does council have any questions? Oh, looks like we have uh Vice President Scha.

Thank you, Council President. Um I I appreciate all of um your remarks. Um Mr. Hansen, and I guess the question I have is related to some of the feedback and response from the community, which I really love. the community has embraced, I think, our sustainability culture and had a lot of concerns around water use and different aspects environmentally with this uh proposed development. And I'm wondering if you could help the community understand in your own words and and perhaps um others have things they could offer here as well, but why should the community be excited about this? I know we talked a little bit about job growth potential and the future development potential, but what are the other reasons why Oakclair as a community should be excited about this development? Well, just speaking on me personally on behalf of the EDC, we're a a public, private, not for-profit organization, and companies like this are hard to come by when they very much want to contribute not only back to the community, to the populace, but it's more to help support our local businesses and our local nonprofits to be more sustainable, to have future um investors into the organizations, become chamber members, and really give back to the community and whether that's hosting different events or providing different uh other than jobs and other than the tax base that it will create, but just different a sense of place really to make it a more feasible location for this company.

I guess on that note, I did have a question about the barbecue. Is there are there going to be vegan options at this or vegetarian options

with Ollie involved? There will absolutely be vegan. That's what I was thinking. I'm excited about that. Um, yeah. Any other questions from council or Oh, council member Brewster, if you could move your microphone just a little up or at least because your your uh laptop is in the way a little bit. So, thank you. Oh, so you can see. Gotcha. All right. Um, thank you, Council President. Um, I was just wondering if you're you're able to I know there's been sort of some speculation about um additional um additional development at this site connected to that and I'm wondering if there's any if you're able to speak about that and if not it's totally fine.

We do have non-disclosures. Um but I will say that upon further discussions with similar like companies uh there is a lot of opportunity for future growth beyond what Oolie is looking to do.

I would I would add that I I think doubling their land purchase size after the second on-site visit beyond what they needed to do their initial project spoke a lot about what they think will happen for them and their operations here in the community. because I had a question actually about the do we know much about the construction jobs and like what that looks like? I I know it's kind of hard to with all the phases. It's kind of hard to like put a number to it, but can you give us a sense of the types of jobs and the kind of the numbers of jobs over time that are just like how it'll impact our local workforce and trades and stuff? There will be a significant impact for when it comes to construction and development jobs when just for the overall buildouts. We do have uh Andrew Worthman here from Myron or Andrew Daniels here from Myron Construction. [laughter] There's a lot of Andrews in the room. Um Andrew Daniels here from Myron Construction and he could probably touch base on a little bit more on the workforce that it would take to build a facility such as this, but uh from from my standpoint, I I don't have the number off hand.

Yeah. If I mean, if Mr. Daniels would like to come up, that would be welcome.

Good evening. So, question about construction jobs. Um, as Aaron mentioned earlier, very fast-paced, often technical construction involving trades that are very high paid. So, we could see anything on site from 50 to 100 people at um at the maximum. when construction is really ramped up throughout the course of the process, you'll start with less than that, end with less than that, but that's probably a good guess in the middle of it. So, a lot of those, you know, people will be local, but those are there's also trades from out of town that'll come and do some of the more test technical aspects, and those people will be staying at local establishments, um, hotels, even the local restaurant. We really see that that impact multiply when we get those type of trades in town.

Well, thank you. Any other questions related to construction or that we might uh council member Otto, do you have a question? This is a bigger question, but I kind of want to get this out of the way to resolve any doubts. I remember a couple years back we were pretty excited about Foxcon. Um and I know it wasn't as big in Oaklair that's just that empty facility on Phoenix Park or near the near the confluence. Um and maybe you know if you can't answer this, what feels different about this compared to Foxcon? If anybody can answer that, I can you Marin or me? Either one could.

So I'll I'll start off. Foxcon was a completely that was an anomaly. Uh it was more was forced upon us by the state of Wisconsin versus there we had very little dealings with the company itself. Um so it was the state of Wisconsin that felt like this was the the place and they chose eight other locations on top of Oaklair to expand their operations. But this is more hands-on, very ingrained into the community already working handinhand with the company to make this project happen versus Foxcon which was it was a parade really. So [snorts] that makes me feel better.

That that was very well put by by Luke. I will also add too if you look at what the nature of the business is. Foxcon site here was going to be an innovation center that was not really defined, not really a clear goal. Clearly what they were going to do was never approached, never discussed. It was always something that we'll figure it out once we once we do it. Um, and I would also point out the city provided no incentives to Foxcon. So, we had no issues with that end of things. only has a history of producing physical products for dating back to the 1800s and have been doing it in the state for a number of years. And that's the that's the big difference right there.

Right. Thank you. Um, council member, thank you. I just want to get that for them with the public. The other one they never [laughter] Okay, council president. Oh, yeah. I'll leave it to uh city attorney Nick. Thank you.

The other key difference is that project never came before you. So I think again to focus on what you're being asked to do, you have a signed development agreement before you from a developer that has been engaged with the city of Oaklair for over three years and has signed an agreement that they're willing to execute upon and that you as council have heard and given directions to us. um and this agreement meets those uh parameters that you've set that had nothing no comparison at all. Anyone can come into the community and buy a forale property and and that's what happened at least in Oaklair with Foxcon. It was not a development agreement with the city that somehow didn't happen. We have an exceptional track record with development agreements that we've executed happening and happening at a high level. Uh, in fact, they've all happened. So, Foxcon was simply a land purchase uh in Oaklair, not a local development agreement. This is a signed agreement that you have the opportunity to approve tomorrow.

Thank you, City Attorney Nick. And, um, do you have more to present or anything? That is it for our presentation. We'll be happy to answer any questions that might be still floating. Yeah. Any other any other questions? All right. Well, thank you so much uh for yeah for coming up and sharing and for all your work. Uh and now we have we want to open it up for um Thank you for your time.

Yeah, thank you. Um we want to see if anyone has signed up on the the sheet to speak. Uh there's on the u on this item. This is agenda item number three. Thank you. So, we have two. See, it's the first time I've actually seen this sheet before. So, um Okay. So, we have the first person uh that would like to speak that that is welcome to come up is uh Tatum Kotlov. Hopefully, I didn't mispronounce.

Yeah. Thank you so much for coming up and you we'll have the lighting system there for so you'll have four minutes to speak. Okay. Thank you. Starting now.

Uh my name is Tatum Kotlov. I live in Canary Square which is specifically 2016 North Oxford A downtown. So just a few blocks away. Um, I came here to discuss a few key concern points or questions that I would just like the council to consider before they vote on this project. Um, the first one, we're going to go back to the water usage. Um, I know that they gave specific percentages that they were going to stay within. Um, but the 199,000 wastewater discharge that they will be discharging every day will be an additional 2 to 3% going through our wastewater treatment facility. Um, it might not seem that large, but that amount could strain our quality of treatment in our water. So, I would just like to ask that that is considered through the development of this. Um, that number is contingent upon them going through all three phases of development. So it won't be that large of a wastewater discharge if they stop at phase one or two. Um again I would just like the quality of our current treatment to be considered through that. Um I'm also curious on the operational costs if that if we go through with all three phases after nine years which I'm sure more inflation will happen but um the operational costs what that will look like for us as residents and taxpayers. we did just go through a 20% water rate increase. Um, so I'm just curious how and if that would affect us as residents, as taxpayers, other local businesses. Um, the second thing that I would like to address is that the city is offering that 5.6 million uh help through the T, the tax incremental

funding through the districts. Um, I'm curious if this does stop at phase one, this development stops at phase one, then that means in starting in 2029, you will have a $14 million tax revenue that will you will begin to receive from this company. Are you planning on paying that 5.6 million investment off? and then the school district and the other tax entities um our tech school, the uh county, will those people start to see the increased tax rates that are coming from this new development and now potential new other businesses? Um if not, when will you plan on getting that debt paid off if they do stop phase one? And then when will we again the other tax entities and us just as a community as a whole when will we see the benefits from that increase of um taxable revenue? Um I was also touched on the venture drive expansion and the building um the storm water facility. I assume that that was not considered in the 5.6 million. So just how much that will also cost additionally. and then again what that'll look like affecting us as a community. And that is all I have to say. Thank you very much.

Thank you so much for for your questions. And and we can we we do have your email for followup and everything. Does do any council members have questions? All right. Thank you. Well, thank you so much. All right. Next on our list is Erica Boden. Thank you.

Thank you, council president. Um, good evening, city council. My name is Erikica Boden, and I am here to make comments on behalf of the Oaklair Chamber of Commerce. Um, in support of this project, this is the kind of project that reflects long-term thinking about what Oaklair wants to be. If the goal is continued growth, a stronger tax base, and quality job creation, then projects like this is how that is achieved through responsible performance-based investment in sustainable private sector development. The scale of this proposal is significant. It represents approximately $270 million in capital investment, including 56 million in guaranteed taxable value. It also brings the potential for 90 to 100 jobs across multiple phases with a significant impact on our workforce. Just as important as the scale is the type of industry this represents. OIE rep operates an advanced fermentationbased manufacturing producing ingredients used across pharmaceuticals, neutrauticals, food in innovation and animal nutrition. All things that I don't really understand. These are globally competitive, sciencedriven industries that align with long-term economic trends and diversification. The city's proposed assistance is structured in a way that reflects accountability and fiscal discipline. Infrastructure improvements through TID 15 follow an established model that has been used successfully in the past to support industrial development and expand the tax base. Uh the development incentive is also performance based. The $5.6 $6 million package discussed earlier tied to construction benchmarks and future tax generation. A portion is only paid after phase one requirements are met and the remainder is paid incrementally as additional phases are completed. If the performance does not occur, the incentive is not paid and that structure matters. It ensures that there's alignment between public investment and private delivery. The infrastructure

component also has broader implications beyond the single project. The extension of venture drive and utility expansion will open additional land for future development. That means this is not just a single project investment but a catalyst for continued growth in the industrial park. This proposal reflects a consistent approach Oaklair has taken over time using tools like TIDS responsibly investing in infrastructure strategically and ensuring that growth is structured and sustainable. Ultimately, this project represents a new tax base, high-quality jobs, infrastructure expansion, and long-term economic opportunity. It's the kind of investment that strengthens both Oaklair and the broader region. For those reasons, I encourage your support.

All right. Thank you so much. Any any questions for Erica? Thank you. Thank you so much. All right. Uh, so those are the two folks we have on our council president. Oh, would I be would I be able to ask a follow-up question of um our economic development director based on what the question? Yeah, I think so. And then we can see if anyone else from the audience has any questions, but Okay.

Um, thank you, Council Council President. Um, I wanted to ask two follow-up questions. Uh I think just to get clarity, we had a chance to discuss a little bit on these, but one was around the wastewater um the the speaker brought wastewater treatment and the capacity of our system to handle the additional um need that this will present. And I know from past discussions that's something that is kind of decided on a case- by case basis, but often it relates to um how how much contaminant is needed to like that needs to come out of the water and can we handle it. So I assume uh you working with our staff have gone through the wastewater treatment plant capacity and what it's able to do. So that was kind of my first question. I wanted to check on that. And the second one was around water rates. And I thought the speaker brought up a good question which is how does it how do how should a resident think about the overall water rates and how it might connect to this development. Are you prepared or able to answer?

Absolutely. I can answer those questions. So our utilities uh division was looped in this project from the very beginning. Um we had a large number of questions um asking the applicant to to provide the information so we can do a proper analysis through our utilities group. um their numbers and what they're looking with are are easily handled within our existing system. Um it probably important to note that these are bioolids that we're talking about as far as release. We're not talking about removing heavy metals from a waist stream or anything like that. These are are more like again suspended solids, things that come in when you're working with bio agents and bio ingredients. They will go through our pre-industrial application process uh for an industry that's looking to connect to utilities, water and sewer. They will identify what their waist stream is. Their application will identify what pre-treatment might be required per our policy and then the rates are adjusted based on the the content of that. There is some sliding scale to be adjusted. Um the company has also indicated there is an opportunity down the road to take some steps to to make use of some of the bioils in a route that's a little more sustainable. um they haven't finalized those plans yet but they are looking at how they can be a little more uh efficient, more sustainable and green in that industry as well. Our rates capture what is required to you know our utility rates for industrial which is different than residential. They capture what is required to maintain those costs and again as a percentage of our system it's very minor in in that route. Um on the water side um again it's looking at um the overall cost of facilities and I had a conversation with our community services director and he indicated that on some ways it's more beneficial and he wasn't able to be here tonight. He's out on vacation but in some ways it's actually beneficial to have a higher capacity use of your plant. uh we have a

20 million gallon per day capacity of a plant and our average water use daily is 9 million gallons per day. We have to maintain the equipment that serves up to 20 million. And if there's not a customer using that water and paying the utility rates that's absorbed across the rest of the t of the payers. So there's actually I won't go into the specifics, but there's actually some benefit to see a higher percentage of our capacity be used in terms of covering costs through the actual utility rate as opposed to subsidizing those types of costs. And they pay the the industrial utility rate. It is staged. Um I'm not sure what the I'm not sure how the staging adjusted um with the tax rate request that's changing but traditionally the amount of rate that they pay on the the first phase which is equivalent to what a resident pays in terms of a volume cap they pay more than residents do. So that first amount of water if it's 50,000 gallons a year um for resin and that's again just as an example they pay more for that first 50,000 gallons than what a household pays and that's all the households would typically use. They see step downs as the volume increases but that's due to efficiency of delivering water across broader systems and higher volume. It's a very simplified way to do it but these are captured by our rates.

Thanks for thanks for addressing those two questions. Certainly.

All right. Thank you. So, I do want to open it up for anyone in the gallery who did not sign in on the sheet uh who would like to speak to this agenda item on the development agreement. Is there anyone else who would like to speak? Okay. So, um then I will close the public discussion on that item and then we will move on to the public comment period. And I just have want to explain what this is because this is for items that are not on the agenda. So they they are things that so people who want to speak during this period cannot speak to anything we've already discussed in terms of agenda items. And is there anyone who has signed up? Um okay. And I could go through the explanation of what it is, but to say maybe first before people decide, but basically people would have up to three minutes um to speak. Um and this is for people that are living in the city of Oaklair or work in the city or own property in the city um who may want to express any any um ideas or issues or concerns. And um you can only speak one time. And um yeah, does anyone anyone want to speak during the public comment period? Okay. All right. Well, um we will get go on that adventure another time. Um, so we do have one other agenda item and that is a closed session. Uh, and I think we need a motion to do that by Okay. So we

we have a I think you need to read the text here. I need to read. Thank you.

Yeah. I and I can read that text, but do I do I read that before we do a motion? Um [clears throat] so so upon a motion duly made and and carried by the city council we we may go into close session to discuss the contract of the city manager an employee over whom the city council exercises responsibility uh which is permitted in close session pursuant to S19.851C of the Wisconsin statutes. The purpose is to provide an update on negotiation of the terms and conditions of and and receive direction from council on the renewal contract of the city manager and uh yeah I think we so I think there was a motion

I will second the motion. So, so by a motion uh from Council Member Worthman and seconded by uh Council Member Miller, we will go into close session. Uh I'm not sure if there's a comment from the city clerk as the specifics of that, nor we need to uh so I will call the role on that item or is clerk. Yeah. Yeah. City clerk, please call the role. Sorry. I Rigger. I Johnson. I Miller. Hi, Otto. I Reed. I show I Serrano. I

Worth. I. All right. And that passes. And so we'll go into close session. Um, council president, could we maybe do a fivem minute recess to give people time to clear out and

Yeah, certainly. We will spend five minutes to give pe folks time to leave and and if people need to use the bathroom or whatever. I have a lot of questions.