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5.3B. SR 10-18-2004 MEMORANDUM TO: Mayor and City Council FROM: Stephen Rohlf, Building and Environmental Administr tor DATE: October 18, 2004 SUBJECT: U date on Great River Ener Plant Utl153i3 10/ Ig IN cfuniulL~ As the Council is aware, GRE is planning on building two electrical generation p aking plants. The first one will be built in 2007 and the second in 2009. GRE's Elk Ri er site was their first choice for the 2007 peaking plant; however, it now appears that this fir t plant will be built in Cambridge. Because of ongoing issues and negotiations regarding the status of taxes on the S erco Power Plant, Sherburne County felt it was not in a position to support the speci legislation it would take to do the in-lieu-of taxes agreement that would have swung the firs peaking plant our way. GRE is reluctant to push for this legislation without the County's support and supporting it contrary to the County would have placed the City of Elk Rive in an awkward position. Staff has had discussions with GRE regarding locating the 2009 peaking plant in lk River. Hopefully, the issues regarding Sherco will be resolved by then.