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Flahave indicated that he is concerned that the cost of the development will become very expensive for the taxpayers of the City. Larson replied that the City has a responsibility to clean up the site to help protect Long Lake and the residents of the City. Black noted that the City will consider scooping out a portion of the soil and treating other areas; while this was considered a few years ago and rejected, it may be more cost-effective than removing all the soil. Black reported that on the east side of the Old Highway 8, staff is working with MnDOT to determine if they still need the 150 feet they have requested for the widening of the Hwy 35/694 interchange, or if they can work with less land. Barr is also working on getting the test results from the east side to the PCA. Fernelius noted that every time the test results are submitted the City runs the risk of new standards and new PCA staff, which means a reevaluation of the plan for the dump area. Potential Developers Black reported that API Group, Inc. has approached the City about developing the bowling alley site and they would like to start this project next spring. While they are suggesting a high- quality building, staff has some concerns that the project is smaller than what the City wanted for the site, does not have structured parking, and does not conform to the design guidelines for the Northwest Quadrant. He stated that staff has talked with the company about the conflict with the design guidelines; they are reluctant to change their site plan, but there may be a way to compromise. Black added that staff is concerned about the design guidelines because this is the first building proposed for the area and it would be difficult to enforce the guidelines if the first project is allowed to ignore what it is required. However, it would be great to have new construction start to help sell the rest of the development. Black reported that staff will be meeting with Ryan Companies to discuss their response to the Request for Qualifications. Ryan has also proposed less development on these sites than what was hoped for. Black added that staff was disappointed that there was only one response to the RFQ. Fernelius stated that staff's plan is to continue talking with both API and Ryan. At this point staff is not ready to make a recommendation on either proposal without more information. Witkowski asked if there were any other negative impacts other than the design guidelines issues. Black replied that originally the site was originally planned for an 83,000-square foot building and what has been proposed is 47,000 sf, but when you look at what they are willing to pay for the site and the fact that it would be done early, the proposal is more attractive. Nustad inquired if API is proposing any warehouse space. Black replied that what has been proposed is all office space. Witkowski asked if they are looking at any additional sites. Fernelius replied that this is the only site that they are interested in. Chamber of Commerce Report Nustad reported that the Chamber has started a program for young professionals between the ages of 21 and 35. A need has been identified for structured programming for that age group in the northern area. The Chamber will also be doing a seminar on business dining and gift giving at the end of the month. Page 4 of 5