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ARDEN HILLS EDA MEETING —April 22, 2024 3 do they want and how can they incentivize and figure out how to work with the landowner? She understood decisions made by the property owner are driven by economics, which was very normal. She said she would like to come up with ideas or plans that the EDA would like to see and if development could be incentivized, they should do this before the lease runs out. Once the lease runs out then the incentive for the landowner to find the most economic choice may not align with what the EDA may want to see at this location, being a prime location in the city. She was in favor of figuring out what vision the EDA has. Commissioner Holden said the Comprehensive Plan says what can go in the site. If the EDA does not want something particular going there that is a listed use in the Comprehensive Plan, then the EDA should address zoning and remove the use now so there is no problem later. President Grant stated he does not want to incentivize the landowner especially prior to the expiration of the lease because then there is no incentive. He indicated that the owner still pays taxes and he agreed with Commissioner Holden that if there is something the EDA does not want to see there, the use should be taken out of the zoning. Commissioner Monson commented that she understood that zoning and the Comprehensive Plan are tools and that exclusionary zoning is not always the greatest tool. She suggested incentivizing a certain use with a better vision and plan could result in having something there that the residents want, that the Council likes, and that also brings in taxes. She was in favor of using tools to try to create something the EDA wants to see happen there. Commissioner Rousseau used the example of multiple carwashes based on a study about automotive in a certain area and asked if a specific area could be considered or would the zoning need apply to the entire zoning district (in this case, the B3 district). Secretary Perrault replied that the City cannot "spot zone" and the zoning needs to be applicable to an entire zoning district. Commissioner Holden agreed with Commissioner Monson about wanting something nice in the Pace site. She referenced the Comprehensive Plan and noted people complained they did not want two carwashes next to each other. She noted that the City does not own the land rather the owner is an out- of-state owner that is not going to be hungry until after not making a profit on the site. She used Split Rock as an example of a property that is still empty due to an out-of-state owner that charges New York rates instead of Minnesota rates. She wanted to be careful that decisions are made based on areas in Minnesota and not just on something someone wants. President Grant noted the case study regarding Trader Joes in Shoreview. He said that the City of Shoreview paid for that and it was a substantial figure. He indicated that it is not inconsequential to do something like the EDA is proposing but the first step would be to distribute the white paper for review in order to understand what the options are. He said he does not see doing anything before the lease expires. Commissioner Fabel said that he may have more confidence in the free market than others do. He offered that the City could advertise the property amongst the development community and see what kind of inquiries the City receives in order to gauge the real market.