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ARDEN HILLS SPECIAL CITY COUNCIL WORKSESSION - FEBRUARY 12, 2024 3 Mr. Cattanach responded they were not. They are seeing more consolidation where they are trying to shrink their footprint and use flexible remote work. Councilmember Rousseau was hoping the community could be walkable. She wondered if sustainability support would entice businesses and whether certain size buildings could implement that easier than others. Mr. Roberts said it would depend on the type of building product but for the most part the larger the building the more efficient it is to do something like solar panels on the roof. Mr. Cattanach said they are incorporating something they call "solar ready" into their buildings. Some groups value that availability and others don't have it as high on their priority lists. They also like to use sustainable materials such as precast insulated panels which are one of the most efficient building envelopes in existence. Building owners can get special financing to enhance windows, mechanical system, incorporate solar, etc. Councilmember Monson noted the State of Minnesota has passed new commercial building codes that are aggressive on energy. Their goal would be to maximize the energy efficiency in the buildings. Mr. Roberts felt having the proper infrastructure was important for walkability, rather than the size of the buildings. Councilmember Holden asked if they were seeing some manufactures not be able to be all electric. Mr. Cattanach said it would be difficult for some users. A requirement that they have to be all electric will push some to other locations, which would be a missed opportunity. Getting to net zero with a manufacturer with a heavy power load is a lot trickier. At then end of the day, they can't sacrifice their process to hit a certain energy threshold. Mr. Roberts felt it was a good goal but anytime you start getting into manufacturing or production processes there is more demand and asking them to pay another 15% to be based off wind power or some other green initiative is a hard ask. Mayor Grant summarized that there are companies willing to downsize into a facility with 32- foot height, best in class space that is flexible with warehousing, manufacturing, research and development and office. Mr. Cattanach clarified that traditional offices are where they are seeing companies downsize. Office/warehouse tends to be a tenant that has outgrown their space and moving into something bigger. Mayor Grant asked how much R&D, office, and warehousing they build into their spec buildings. Mr. Cattanach said they will build an empty building with loading docks, glass and entrances in. That way the user can customize exactly what they need. There are an infinite number of combinations of R&D, warehouse and office.