All right, we'll call to order. This is the Briner City Council joint meeting with PUC and EDA. Uh, Thursday, May 8th, 5:30 p.m. in council chambers. Uh, Tony, please call the role. Uh, city
councils, Chzach, yes. Johnson, present. Stunn. Jerger, yep. Beven here. OD here. Bedau, public utilities, England here. Higgins. Matten here. OD here. Eda Grasula here. Kersh Sandy here. All
right, everybody 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. Mr. President, Mr. Chzant,
could we call the role for the EDA with the council members so I'm clear as to who's on there now and who isn't? Oh, sure. You recall the EDA? Sure. Gasoula here. Kersh here. John. Yep. Here. Johnson and Sandy here.
I'm here too. And Jagger. Sorry. Here we go. He's the chair. I did that. Tony. All right. Now, what about Tony Beaser? Now, next we have number four, approval of the agenda. We have a motion. So, move Jerger. Second, Johnson. By Joerger. Second by Johnson. Any discussion? Hearing none. Let's go
to a vote. All in favor? I. Again, same sign. We have an agenda. Now we have our single item number five. This is discussion on block matrix purchase power agreement extension. I believe we're starting off with James Kravik. Yes. Thank you, Mr. President. Uh so
staff has provided a timeline history in the packet um in at the February 14th EDA meeting. Uh the EDA approved VCV block metrics revised purchase and development agreement as well as a revised construction plans for 1911 TC Drive. The contract has not yet been
executed as a land transfer is not complete. Um you'll see Hi-Tech has been working and staff included a the letter from Hi-Tech that shows some of the stipulations for um the building permit. uh wanted to make the all the boards, commissions, council aware block metrics
has been uh keeping in contact with the community development department throughout the design phase process has made substantial progress on the construction documents. Uh the architect architectural timeline has been moving forward at a very standard pace that we've seen uh with typical commercial construction. Um not all that much
different than uh projects such as Dunkin Donuts that we had a year ago. Uh VCV, Tigercloud and AnQing um never got to this phase. Um right now structural, electrical, plumbing, engineering, storm water are substantially complete. Um I also understand the statements that were made from blockmetrics that the project
could be completed in an expedited fashion. Um reasons were given from blockmetrics at the BPU commission meeting as well as a letter that was provided um that's included in the packet. Uh the final issue right now is the roof over the air coolers uh which is creating a challenge for the mechanical plans um essentially to
ensure the coolers are running according to specifications. So, right now they're trying to deal with kind of a heat issue with that. Um, if Blackmetrics proposed a change um potentially removing that uh roof, it would require EDA approval and a conditional use permit from the city
after city council approved ordinance 1581, which regulates future data centers. Um this would most likely uh with the conditional use permit process um be probably around a 90-day process uh for design revisions, sound studies, um and then the meetings, planning
commission, city council meetings. Uh so with that, uh staff does recommend continuing to work with block metrics through a power agreement extension and revised purchase and development agreement with the EDA. Um however, staff is recommending the provision should be added to the power agreement. Um this would essentially allow um
essentially with a power agreement to end sooner if there's no progress being made um towards completion of the project. So the first one would be to execute the power agreement and purchase and development agreement by an agreed upon date. Um staff came up with September 1st as a possible date for
that. Um this wouldn't be in the actual agreement but a a potential condition of the agreement that would be attached to it. So both for the purchase and development agreement as well as a power agreement. Um, also creating a construction commencement deadline. This is in the EDA contract, but it's not
been a part of the BPU contract. Um, I believe um in the EDA contract states that construction of the minimum improvement shall be deemed to be commenced when the building permit has been issued. The grading on the development property is substantially complete. Um, could also potentially add a provision that you'd have to have the
foundation inspection complete as well for the primary structure. Um, staff looked at this as potentially a November 1st. really that's kind of the end of the deadline when you when you should be doing probably foundation and concrete work. Next one, uh creating a primary building construction deadline. Uh this
isn't in the EDA um contract, but uh could be a provision for both. Primary building construction deadline shall be deemed sufficient when installation of all exterior roofing, siding, windows, and doors are completed. Staff didn't have a timeline. this potentially could be negotiable with with block metrics
and and high-tech figuring out what that timeline potentially looks like. Um, and then noting that missed construction deadline should allow for termination of the contract. Um, in the in the EDA contract, we have a 30-day kind of provision where we send a letter um stating that you essentially have to do
this. If those 30 days expires, then there's ramifications within the EDA contract. Um, again, one of them could be potentially termination of the contract. Um, and then finally, um, this has been discussed, um, I know with BPU, um, some type of monetary penalty if block metrics does not meet the power
requirement deadline, which is the extension that they're asking for. Um, I think staff probably recommends, uh, you know, perhaps payment of of half of the expected power kind of each month that they're not meeting that requirement. So, uh, BPU would be continually receiving some of those funds. Um, so
with that, the BPU commission asked for a joint meeting so everyone is on the same page regarding this matter. Um certainly city council may be involved um if it does go to a conditional use permit. Um but I think BPU also just wanted to hear what the city thought about it as well. And then the EDA has
the uh the the property as well as the purchase and development agreement. Uh so staff is not recommending for formal approval at this meeting as there's no contract but is looking for a consensus to continue to move forward and create a contract with agreed upon parameters and the alternative would be to direct staff
to no longer work on on a contract. So, with that, I'll open it up to questions. Um, certainly Danny's here to answer any questions from the BPU side of things as well. Thank you, James. Does anybody have questions for James or Danny? Mr. Beaven, I have questions for both James and Danny. Perfect. We'll start with the
power requirement. Yep. Just to confirm, I watched the two plus hour PU meeting. I did find it, Mr. Chzik, very informative. Thank you for that advice. We don't have an agreement with them now. They Why is that?
Did we offer them one last fall? They they had an agreement that was sent to them back in October. That's what I thought. And that has been sent to them. They have not executed that agreement. Okay. So, we have offered them one. And what would the deadline have been for that? That agreement expired on December
31st of 2024. Their commission voted and approved a renegotiated contract through September 30th of this year. Got it. And that's that letter that we have. Correct. Right. Okay. We are
working through. So, we gave them one. Mhm. They just didn't sign it for comment. They got a redlinined version in October and we had not received uh response to that letter before Chris Evans left. When did we get that red
line? October 7th. Okay. We've only seen one contract. Yep. Thank you, James. My question for you is, didn't the build didn't the EDA contract have a building date on it? Not next September. So, the commencement deadline, I believe, was
April 1st on that one of this 2025. That's correct. Come and gone. What's that? Come and gone. Yep. Come and gone. So, uh, and that that contract has not been executed. Really doesn't allow them to sign it until the the land has been transferred. Um, so I know they are
trying to work through all of making sure that they have all the approvals set up that they're able to get the stuff and then look at purchasing probably a million-doll property. I don't understand a million-doll property. That wasn't a million dollar property. Um, with the improvements that
were put into it as well. Well, those improvements are theirs. Yep. That's their decision. Yep. They want to put up gold statues. Gabe, that doesn't really I would disagree that that would improve the property. Anyway, okay. So, there
was a building date. So, they we offered them a power agreement. They didn't sign that. We had a a building agreement or whatever that's called, a development agreement. They didn't sign that. That's correct.
Seems like a no-brainer. Okay. And the last question I have and it would be for probably for Mike England. We never got we never got when this thing first came down it went the power agreement went right to PUC probably as
it should. I would argue meaning that our past community development director presumed on all our behalf that this was a manufacturing project and allowed in the industrial park. So, the city council never looked
at it at all. I really think the power agreement still belongs with you, but I didn't actually see a vote on that two and a half hour meeting, but I I kind of got the gist of what the
commissioners thought. Did you guys ever vote that I didn't see? We did not vote. And we went into that meeting with a lot of questions. So really our purpose of that meeting was to ask questions, find out where they were at with their project. They didn't sign the contract. So we we just had a lot of questions and
when they're asking for a six-month extension, we wanted to know number one why that was. And and then also for us just as a utility, we have an opportunity, we have additional capacity that we could be selling to customers
and so we need to know. So, we're setting what they want off to reserve. That's correct. Okay. And the last question I have for you, Mike, is Mr. Commissioner Hagens mentioned that we're losing and I think he said $55,000. Is it a month or a year? That
would be per month. Per month. How is that? Is that because of the OP what we could is that an opportunity cost? Yeah. Or is that a hard cost? So Danny, if you'd like to answer that, but we did run those numbers prior to that meeting. Annie, is that a opportunity cost? Meaning that we could be selling it to
somebody else. Correct. It's an opportunity cost based on our average monthly bill. Really bleeding 55 grand, but we kind of are. Correct. Opportunity cost. Yes. Right. Okay. No more questions. Thank you, Mr. Chair. The other thing that we had with that was that uh we wanted to have this joint
commission meeting because we wanted there's other contracts involved with this. So with the EDA and as we look as everybody looks to either extend a contract or draft a new contract, we're all thinking the same thing in terms of what are the conditions and so we just
wanted to have a consistent message between everybody and just to make sure that everybody felt like they're on the same page. Thank you, Mr. Johnson. Thanks. Yeah, this meeting is about four years overdue. So I'm glad you guys called it. So we don't they don't have a purchase
power contract currently. Correct. They never signed the development agreement. Correct. So what the hell are they looking to extend now? Sounds like they have nothing to extend because they haven't got a contract. What are they trying to extend? So they're extending I guess for
patience or a contract. They're looking to extend the offer um of the contract. So certainly it wouldn't be a contract extension uh but what BPU would be offering in that contract. So they're just asking to extend our patience for another 6 months but they're not willing to sign any
contracts and they have yet to sign anything we've sent to them from BPU city ED anything. Right. So perhaps um I know I've talked to attorney Langel on this. if the EDA um contract was potentially amended with conditions in
there upon their signatures, um there'd be opportunities, but again, from an EDA perspective, they can't sign it until they purchase the property, but so who owns the property? VCV still owns the property. And why won't they
transfer it, sell it, whatever? And question one, but the follow-up question to that is what does that have to do with the EDA? So again, if um if the potentially they wanted to remove the roof or right now our commencement deadline is April 1st, we'd
have to have some type of amended purchase and development agreement based on on what everybody determines tonight. An amended agreement that doesn't exist cuz it's never been signed. The amended agreement, um there's been a couple amendments that haven't been signed. Um
it' be an amendment from the original agreement signed by VCV back in Right. So, we still have a contract with BCV and they still own the land and that's all from the EDA perspective, not hypotheticals and conversations and what other people want
as it exists. So, we have a development contract with VCV. VCV owns the land. They're obviously not doing anything because Block Matrix is over there doing things, but Block Matrix is for their personal reasons, I don't care what they are, not signing any contracts. I just
don't see why we would extend our patients at all if they won't even sign a there's nothing to extend except for patience and we've extended nearly four years of patience on this. So I that's my question is why why
why should we extend? So and again we could certainly ask that question um and they could get clarification before any other meetings. Um I I would probably come under the understanding that they're not wanting to probably purchase the the property at
this time without approvals. Um that would just be my assumption and they can't sign that contract until the property's been transferred. That's a risk that comes with business potenti. Yes, potentially is. So now we're just risking time that we could be
selling power at $55,000 a month. I know there's people probably lined up at the door still wanting to do the same exact thing, but is this faster still or is someone else faster? I don't know. We
could Yeah, I would love to hear from uh BPU Commission. I didn't I wasn't able to watch the two-hour meeting. Um, I've had talks with staff about a lot of this and Mike England, but if you can fill me in
on options that might exist. Are there still people calling? Um well JFK or just for crypto contacted me probably four months ago and asked if there was any opportunity to get more
power and according to Trent they could take another five in their current location which even at that that's 10,000 a month from that. Um but if they were to go beyond that they would have to have it in the facility.
Okay. So we asked them a lot of these questions and to be honest a lot of it was you know going back to supply you know supply challenges and
getting stuff and and all of that which never was an excuse in the past but now all of a sudden it's you know going back to tariffs all of a sudden you Yeah, they brought that up and you know then
they brought well the noise thing that that's slowing them down because they're working with an engineer and it was the city's fault and I told them no I was at the meeting when they were the ones who volunteered because there were a number of people here who were upset and they
were the ones who came out and said well we're going to use the you know top-notch technology and all of that. So, I called him out on that and he didn't say anything about that. But we also I mean I told him we we have
$275,000 between that and 300, right? That we're going to be under contract to do for them. So, and I mentioned that we would want that 275,000 upfront at the time they sign the
contract. And now we're not talking a six-month extension from today. They want 6 months to March 31st. So, and they said, "Well, we can get that done. We think, you know, well
before the 6 months." I said, "Well, okay, then why don't we just extend it four months beyond that?" The other thing I was asking for is that if you know I told him we're losing money every month you guys don't get this done. And
so I said that they should be paying us you know substantial amount of money if they don't get going by the end of this contract if we were to extend it. They didn't say anything.
Did you guys talk about setting up some type of RFP? At this point, we kind of have a picture of what this property that the EDA and the city had have set up or or let these two different entities set up and
everything's been approved and nobody's moved on anything. And now, like you said, we're hearing about in a letter that was written on April 23rd after they were finally asked on April 15th, what's going on with the power agreement about a contract that expired
April 1st, the day the tariffs essentially started. They're saying that the tariffs are part of the reason. They're saying that COVID supply chain issues type situations are happening, too. and it's just it it doesn't read well when I read
the letter. I'm not saying that I'm completely out with dealing with this this company. I'm saying I'm not happy with the way things have happened. But if there is an opportunity for somebody to swoop in and
quickly make this happen, we should be able to look in into that without anything being signed at this point, especially the EDA contract. I it doesn't make sense to me. It shouldn't take that long. I know they're trying to
get everything permitted and everything like that, but we've already done everything that we had to do and it's been months and months and months. So, um Chzach, you have your hand up. Oh, sorry. Yeah. Thank you. Um if if there's any decisions here tonight um how will
this work if u say EDA says we're not interested but utility says commission says uh we are do I mean does this have to work where none of this is going to move unless all three bodies here are on the
same page I know I think between me and Mr. Stun. Everybody's on the ADA, correct? No, Bevans. Not Bevans. Oh, not Oh, not. Okay. Sorry. Okay. So, everybody with the exception of myself and Marie Marie Kers Marie Kers did step
in, sir. Okay, great. Um, so crypto money. So if that is the case, um would it not be fair to say that unless we leave this room with somebody saying something agreeable to the EDA? Same
with public utilities commission and then the council comes in I believe Mr. Cranic with the U is that more related to the roof ex exclusively regarding this proposed uh site they're going to build on? Yes, I did confirm with attorney Langel they've submitted
building permits. um ahead of the ordinance. But if they're substantially changing those building permits, then it would be subject to conditional use permit, which it would be determined by a recommendation from the planning commission, city council. So it still have to go back before
planning commission that the conditional use per Yeah, if it does have to go through the conditional use permit process. So if we were to come out of here tonight with something to move forward with, uh the council would have to say go to the planning commission. Well, so
that is only if they're substantially changing the plans and that's that hasn't been firm yet. All right. Um I just want to make one comment, um Mr. OD, that uh I think in the letter they weren't saying there's issues related to
CO. They're saying I think they're similar to how things Okay. Yep. I just wanted to make sure blamed on tariffs. Well, tariff. Yeah, correct. Couple different things. Yeah. Okay, that's all I have. Thank you. Thank you, Mr. Chzach. Mr. Jagger. Yes. Thank you, Mr. Chair. From I guess from my seat, I'm
seeing a couple things here. As a as a as a member of the EDA, when the EDA enters into agreements like this, the expectation is is that we are uh expecting a return on our investment in time, effort, energy, and so forth. When
that doesn't get met, then we have new we we have new obstacles and new challenges to think about. To me, the construction industry is fraught with peril of construction cost ebbing up and down. When you're in the indust when you're in the industry of building
whatever it is, part of the risk of not building at that time is the potential for escalated cost. Anyone who knows anything about construction knows this. It should not be a surprise that if they didn't build that they may see costs go up or down. We see some costs right now
coming down. Oil related items for instance in many cases are coming down. Other costs are going up. So to me that is not a viable excuse of why not to build. However um I would be potentially curious to know Mr. Mr. Landal, this may be a
question for you. Is a a contract hold compensation structure is not an outrageous idea. Meaning that you have a contract in place and there is a a a compensation structure for the lag time of which until that takes place,
say $55,000 a month or something like that. Could is it a possibility to move forward with a contract extension with a precursor to that contract extension being a a a hold penalty? Um a dawn penalty.
I mean certainly this the EDA BPU can can put that out there. Uh it's is it's you know you guys are in a position here where we don't have a signed contract. Uh you do have a contract with
VCV that's that's sitting there for the EDA but there's no there's no power contract. So yeah there you certainly have options here in terms of negotiations. That's all. Thank you. Thank you Mr. Jagger. Anyone else have questions
comments? I have a couple questions. One I want to ask Trent first and foremost. Have we had to throttle back yet on JFK yet going into the summer months knowing capacity is we're going to need as much as we can as this BPU has had to curtail myo has curtailed them but it's been on the same average pace that we've been
seeing for the last couple years. Okay. Because when you talk about that you ran the numbers. I just want to make sure that we're made aware that some summer months we use the power. We use the majority of it and they become second. Okay. Just want to make sure. Um, and I know today, just just in checking, um,
Bitcoin was trading at $102,000 a coin. Um, so I know there's there is a desire to want to move forward with them. I I get this and I understand it. I think from the BP BPU's perspective, when we first entered into this power agreement, I think we were
all a little surprised that they hadn't come to the city first and that there wasn't a checklist of EDA requirements. Um, now that the propertyy's encumbered with stipulations of what can and can't be there, um, we are kind of we are kind of specific to the type of business that
is going to be at that particular property. So, I guess I'm looking at it as I completely understand they've got several hundred,000 into the planning piece of it. Um, I was unaware of what they had into it. Um, but I also think that there was a lot of steps that were
taken that weren't taken in the right order. Um, which found us in this predicament. I don't understand why the contract still isn't signed. That makes zero sense to me. Um, which is why we asked for this meeting because we needed to find out from you guys why what was
taking so long. Why don't why don't they own the property? I mean, this is all this was all second news to us and kind of surprising. So, I think it really first and foremost comes back to what is the desire of this company to move forward. You've got an investment into this property. What is holding you back
first and foremost from signing a contract that we can't continue as a city move forward until we know where you're at. So, I don't know how we move forward unless we have some specific answers and some contracts signed. But it is my understanding and my feeling
that there should be some sort of heavy non-refundable deposit to be made to be had if the patience of this council um is to be asked for that there needs to be some deadlines. I get really tired of pushing that deadline when we nothing
gets ever gets met. There's no ramifications when deadlines come and go. Um and we just potentially miss out on on selling to other people. So, that's all I really wanted to say with it, but I just wanted to make aware that
um we do actually curtail JFK or anybody else for that matter um because the residents come first. So, thank you for answering that. Thank you, Johnson. Yeah, and just to piggyback off of Bitcoin being 102,000, when they first
came to us, it was like 45,000. So, if they're actually Bitcoin miners, why can't they pay for a 10% tariff from Canada? I don't get it. Why couldn't they pay for it before the tariff was even in place today? They would probably blame the concave is why they couldn't get this done. But
uh as a councilman, as an EDA member, I know I asked questions saying, "Well, we don't even have a contract, so why should I even care?" If the commission wants to move forward to continue working with these people, I'm perfectly fine with it. You know, to also answer your questions, Jeff. I'm not going to sit stand here today and demand we walk
away from them. But I do think to follow up on what Kevin said, yeah, we should have financial penalties. We should if they want to buy 20 megawws and that's $55,000 a month, they should be kicking out $55,000 a month at a date set and they should have to sign the contract.
We can't continue operating like these guys have a contract or we're extending anything because there is no contract. If we tried to hold them accountable for anything, they would say we don't have a contract. What are you talking about? Because we don't have a
contract. So that's right. Thank you, Mr. Beaven. Thank you. I agree with what Chairman Johnson and Mr. Joerger said. I if we are going to sign a contract with these folks, it's got to be within 10 days or a certain time period. Okay?
It's got to be a short enough extension that anything after that extension has to be they have to cover our opportunity costs. And I would expect a shity bond of at least four months on that part of
it. So I don't want to I don't want to be trying to get money out of them in 180 days when they don't pay. As far as the EDA contract, we have people who buy property all the time and don't do anything with it. That I mean that I kind of get that. I I mean look at the
Thrifty White building. All they've done is dig a hole. We got grass. Grass. Plant grass, right? which I kind of like the grass. Sure. The little doggies do too. We heard all about that mini golf at the CUP mini golf parking lot. Um but I I would not
favor changing the roof structure that they proposed. I mean that's the one thing we get with this company. It's a compared to what we already have. One is I think they're going to and I I would defer to Trent. I think they're going to they're going to buy more, I think, than our
existing company. So, we'll make more money. Buy more, make more. And the other thing is is the other company snuck in under the radar and doesn't meet the same at least noise qualifications that Black Metrics
that we're holding Black Metrics to. So, that's a I mean, that's a plus. These things don't produce employees. And maybe there's a little bit, we talked about the improvements to the property, maybe there's some increase in property taxes, but nothing like what we'd make off the
electricity. But I would support that. But I would want a contract signed as soon as we could get BPU Commission to come up with the parameters of that contract and the EDA to come up with the parameters of that contract. And then I give them a short
leash on when they sign it and don't sign it. and they you know as far as the property transfer from VCV I've bought property before takes about an hour right I mean that I don't want to hear that stick your neck if they got
hundreds I don't know I can't remember what the what was the purchase price of that property purchase price was somewhere somewhere between 220 230 okay of the actual property 227 so that now they're put now they're putting their money if you want an extension and let's get rolling. They
told I heard on the PUC they hadn't even ordered the transformers yet. Well, I I would imagine it's probably is going to take longer. To what to Gates's point, those should have been ordered last fall. So, anyway, that's my point. I
would support all of that, but really it come it really comes down to the public utilities because that's where that's where the interest of the citizens of Brainard is financially, right? And I support what the PUC has done so far. I
mean, you get an A+ for effort. Mr. President, we got Steick next and I'll go back to you. It just everything we've done here tonight is all negativity toward this company and it's been going on for years and years and years. I agree with with everybody's been said, but when are we
going to lock the door and say goodbye? If they were aggressive enough and wanted to really do this, they'd have been doing it by now. It's time for us to stand tall and do it. We'd never move forward as a city council or a city of Brainer without signing a contract. We'd either get aggressive with it or we'd walk away.
Thank you, Chazak. Um well that's a this is a new company as of last August I believe so it's just associated with BCB they brought them in so that that is the one exception here I agree with Mr. student, but that is the
exception to that. And then the um I I I agree we should have that um escrow payment, whatever you want to call it. Um that's to cover our costs for the infrastructure that Trent speaks of, the 175 to 200,000. Um and also the
power. I agree with Mr. Jagger here. I believe that was to your point. Moving forward on that note, that's up for the public utility submission. The other purchase agreement. Is there is there something to do with permitting James that they
aren't able to purchase until all the permitting? Is that their want? Is that more of a want they have to get that all the pering? Is that the city telling them you can't exchange the ownership until the permitting is done? How is
that working? So, until they have the the land transfer done, the way the EDA contracts written up, they wouldn't be able to execute it. So, they have to become the developer and the land owner at that point. Um, permitting is probably something on their end that they want to make sure that they don't
have issues um, with the city um, or any type of requirements for any land use permits before pulling the trigger on the on the actual purchase of the the property. That's more on their end. I I wouldn't go to figure. Okay. One other thing to the transformers in their email
that we got Super Oil sent that out. They are saying that six months is the outside time and it's They're anticipating sooner. That was what you guys talked about at the utility commission last week. It was questionable if they can do
that. I I guess I'm having a hard time understanding that because I believe 24 weeks correct. So that that was in they claimed they could get it at the outside if I'm not mistaken. So I'm not saying that as a point of argument or anything.
I'm just saying that's what we have from their text message. So that makes a difference. That's all I have. Thank you. Any else? Just a point of clarification. So I have an email from Row with a quote that
expired in April for Blockmetrics for their transformer and had a 10-we lead time and we've been working with Blockmetrics for less than a year because they bought the property or switched from Onchang to Blockmetrics in around May of last year. just those clarify they were ordering it and that
that agreement has expired too. They have not ordered it but we do have a quote saying that it could arrive within 10 weeks. So if they if they were to open up that order again it would possibly be 10 weeks still potentially. Okay.
All right. James, how long and first of all I don't know why you would not change another change that they want. I mean, they already went with forward with the roof. I mean, by doing that, that's going to delay things what, 90
days? I mean, this is where we're running into the problems. How long till EDA can sell that land and they can move forward? I guess that's seems to be kind of what the holdup is, even though they haven't really said that. I'm
guessing. Yeah. So sir, so like so if they were to purchase it or if the EDA were to take the property back metrics to get the property and move forward, how long does is that going to take? No, they could do it now. 1 hour. They could do it now. They're try they're trying to
get rid of all their risk before they transfer it. What we want them to do is transfer it and move forward. Same as what we want, right? Basically, we want them to step up to the plate. My idea is if we want to extend this extension of a
new contract that they it is a new contract. They've never signed one. So if we want to offer this to them if they don't sign it, I think BPU staff should be open to hearing offers from other entities and it just doesn't have to be
JFK. It can be anyone else. I know that people were knocking on the door before and if somebody has a better project that they can come in and swoop up that property. Well, we can work with them. If these guys are unwilling to work with us, they've already proven they don't want to work with us. That's what it seems like. They're not signing. Mr.
Chzi, I I can comfortably sit here and say I'm not interested in changing anything on the roof. So, as one person that would have a decision in that, I'm not interested in changing that. So if we could perhaps agree or disagree as a council how we want to move forward with that that be one thing to talk about and
go back to planning it. So I mean that might be a place to start at least we decide we could decide on that right now if there's say a motion to bring for or just do nothing as you know
consensus vote is all we need. I mean that's where I'm at. I don't want to see that go back. I think they made that offer. We should hold them to that. If the rest of you disagree, that's that's why we sit here and make a decision. So, that would be at least a start here to move forward, get that off the table.
Okay. My thought the other side of that would be they would have to what whatever new plan they come up with would have to meet with our new ordinance that we just passed on Monday night. So, it still would have to meet sound requirements. A roofless building
seems like an odd thing to build. And I don't know I don't even know how that would be taxed compared to a building with a roof. James, so that's just the air cooling building. Um it's not there still be the primary building in front with all the with the data miners themselves. Um so that's just
essentially the air conditioning units that uh they had proposed as the kind of the secondary building behind it. Okay. Question. Go ahead. Johnson. So, James, what is the benefit to the city or the EDA or whatever right now to continue
with this uh PDA? Can we just reach out to VCV and see if we can just eliminate it or is there something that we want that really is important to us in that agreement?
So, right now um both parties are binded by the agreement unless we both agree or not. Is there something that the city wants or the EDA wants that we really want that PDA to still exist? You know, I'm not sure what alternative
sites there would be potentially for um crypto. Um certainly there's a a line that goes to the end of that property that's been installed um by Brainer Public Utilities, paid for by VCV. Um so if if the city wishes to continue um that property, you know, is probably I
fairly ideally set up for crypto um or but but but we past data center ordinance in crypto is allowed with CUP in the city of Brainer. I'm asking what about the PDA that we have that the city wants that is important to us to keep in
an agreement? what's what's currently in the in the purchase development agreement that we would want to keep in the purchase and development agreement. That is important to us that we wouldn't want to just eliminate the whole PDA. Yeah. Um if we if we eliminated the PDA, then they could do whatever they wanted with the
property. It wouldn't have to go back to the EDA within our zoning code. They Yeah. They would just be subject to the zoning code at that point, which is a bad thing. Do we have a bad zoning code? No. It's uh you know that what what they'd be there
is significant investment in there now with that line going in there. So the chances of you know that property being potentially used for mini storage um which doesn't bring in a lot of doesn't bring in any employees doesn't bring in any extra revenue any revenue to Brainer Public Utilities. Um that'd be one
example if they didn't put that electrical line in there that we give that away. We don't have any control of that development anymore and all of a sudden we have many storage units on that property. So that's one of the reasons for that purchase and development agreement is to make sure we're not ending up with a very low
value development. Okay. But we have people wanting to build crypto mines and the PDA seems to be one of the things holding them back. Yes, potentially. And because of that infrastructure that was put in, removing that barrier might make it easier. Could
potentially. Yes. Okay. of the infrastructure. We paid the infrastructure. I think they paid for the infrastructure. Yes, they paid for all the nuts and bolts for that project. So, there was no
BPU cost um to that extension. That pole line, if these projects die on the vine, can be used for another feeder coming out of our system. So, it does not go to waste. We could still use that circuit. Okay. Are we on the hook for that cost?
No, we are not. Okay. You got how how uh Danny, how long does it take? I I don't think we asked that question when we met with the attorney on how long it would take to draft a new contract.
And I mean, when could we say you need to sign this contract, you know, a drop dead date? She's waiting for our response at what happens tonight. So, she's prepared to she she could probably have us something by the end of next week. Well, it seems
to me that the majority here wants EDA wants to sell the land and put up a building and we want to sell the power. I don't think anyone can come in, you know, cuz this is really the only site that's been prepared
for that much power. So, I mean, it's still going to take time if So, if we could move forward, I still think 275,000 put in escrow to get the money to get the job done and to show that
they're committed. And then if they can't start by the end of the contract or this extension that we have a $30,000 a month fee penalty. You know, we we've gone on this. We've been losing 55 grand a month
on these people for quite a while. So, God, I sound like Trump. They're laughing at you. I don't disagree. Um, Mr. Sandy, this might be a question for Joe. Joe, are we able to insert some
sort of shy bond language in there if they if we do go down the path of this fee 55,000 a month call it um and they don't pay the bill. Are we able to put language into a contract that requires shy bond so that we can go after that?
Certainly you can come up with your own version of protections in the agreement or just default whether that's cash whether that's payments. It's it all depends on what the two of you agree to, right? Whatever you want. Once they start using
the power, we already have that in our existing contract. That's that's not an issue. Um, they basically are paying upfront. Okay. Well, the other part about this, you have the staff recommendations with one
through four uh September 1st, November 1st, and you have uh number three that the primary construction deadline, meaning the outdoor outside of the building is basically done. Says negotiable. Um and then the other part with the what we were just talking
about, paying for power or opportunity cost, that's a negotiable deadline as well. I don't want that on a contract agreement. I think all of our deadlines have to be hard stop concrete. This is the day. We're not coming back to the
table and doing this again and again and again. Um we've we've wasted a lot of time on that. So, if we're going to go forward offering up an contract again, I would be okay if there was hard
dates, but you guys have to with BPU, I think you guys have to set those. You'll understand commission's prepared to do that. Okay. Um, as far as the EDA stuff goes, as far as as soon as that is not met, one of those deadlines
is not met, then I think we come back to the table with the conversation with the EDA again and we say, "Okay, let's let's start opening this up to another group, see if somebody else can come in and and fill this void that we've now created
somehow." That make sense? BPU is you as a commission. I think you guys are it's up to you guys really at this point. We've already sold the land through the council and EDA. Um but that's peanuts compared to 55,000 a
month in perpetuity or whatever it ends up being in the future. So that's where the income comes in. Jagger, thank you. Just real quickly, I I'm I'm hearing a lot of reasons of how we could extend this, but I'm not sure I understand yet why we want to extend it.
If we have somebody ready to rip, I'm just not sure. I'm finding my personal motivation to keep work keep hashing out a deal with a non-performer when we got if it is in fact true, and I just want to make sure this is the case that we have somebody ready to go. No, we do
not. They would have to buy that property. Mhm. Oh, I understand. But that's it's I thought I heard you say that that wouldn't be they have the same problem. I see. Yeah. So there's there's a potential for somebody to take over 5 megawws worth of the 25 megawws we're talking about or
the original 50 that we talked about. But I think we only have capacity with where we're at for another 25 correct right now. Or is it 50 just for just for crypto? No, I'm not talking about them at all. Well, the the five that you spoke about earlier. U Trent. Yeah. So
when we did the initial calculations on that back four years ago, uh we had 50 megawatts total of extra capacity um that moved into the VCV contract since they did not move the ball anywhere. 25% of that covered out for JFK. So there's 25% uh or 25 megawatts, excuse me, left
of capacity right now that we would feel comfortable um leasing. Okay. And to increase anything beyond that, we would have to have an increase in infrastructure coming from the grid into our correct. And this works because it's interruptible loads for us. So if we're
having an issue, we can shut down their load and it goes straight to the city. So we're very comfortable as far as the operations of the grid. We're we're doing well. We're okay. Yep. So my my point is I guess we have 25 megawws for sale. Nobody's under contract for that.
We should be listening and hearing from other groups that are willing to come in and buy that. But like you were saying, it would be starting over again. So that's that's the other opportunity cost. I think by extending this offer,
it is kind of one last shot at trying to get this done as fast as it can get done. And if it doesn't happen, it doesn't happen. Then we we lost out again and we have to start over again. Kelly. Well, and I agree and I think all parties have got a lot invested into this. I think where uh some of this came
in is when they came to a board meeting and they had asked about uh the change in the roof and as Mr. ODay said, you know, this this isn't where you asked that question. We're here about selling power. So the with what Mr. Chzik is saying, it really is going to stem from
if I'm wrong, please correct me if they the the agreement is not to not to be able to remove the roof. They were the ones that came up with that plan. That's the design we're moving forward. If we don't change that, the deadlines can then start. We can start adding those deadlines, right? I It's what it all
revolves around is this roof plan or not. Correct. Yeah. Yeah. Certainly if that's removed. Um, no, not removed. If we have to leave it in there, I mean, if it if we're leaving it in there, can it's easier to create these deadlines now because then everybody knows what we're working on,
right? Okay. So, we're looking it's what I'm hearing is if there's no change in the roof plan, they can now make that 10day, 20-day, whatever agreement in in signing these agreements. I think we we got to at least dot dot the eye. The eye
is the roof. Let's figure that part out right now. We're not making any changes. They know what they're getting into. Let's move forward with that. And then we can create these contracts um with dead with specific deadlines, specific deposits, the spec penalties. And if they're not willing to sign that
contract within the next 10 days, we then look for other people. But we know what we're working with with capacity. We know we have we know what we can move forward with and we know what type of building would have to be on that property. So that's what we needed to iron out today. So, I'm happy with your
guys's answers because it gives us direction on how we move forward with the power agreement. So, right. Agreed. Okay. Agreed. Mr. Chaz, um I hear 10 days. I I'm not objecting to that except uh you guys meet on the 27th, two weeks
from Tuesday, unless you want to meet sooner. Uh EDA, Wednesday, what are you guys meeting? Nothing. June. Yeah. So, it's the first Thursday in June would be the next regular meeting. Mr. Chair, I don't think there's anything for the 88. No, I don't think
so either. I'm just asking um uh we meet on the 12th or I'm sorry, the 19th, I believe. Yep. So, I'd be comfortable, uh just saying right out so this can get off of dead center with that roof deal. I mean, if
you'd entertain a motion, I I don't like to make a motion to not do something, but at least tell them as a council, we have everybody here, but I think Mr. Eric Unless I'm unless I people disagree with this. I that's how we find out. Well, it's not the it's not the formal process
that we would go through for that because it would be a cup that would go to planning. So, having a vote on it before it's in front of us would probably be premature. But a general consensus, I'm not interested in it either. Okay. We we've already we've already approved the plans for the building that they wanted to build and
it's not up to us to have to come up with some way to make that technology different. That should have been figured into it. Right. Uh, Mr. Johnson. Yeah, we already approved a building design that they proposed. This isn't something we told them they had to build. This is what they wanted to build and we
proposed. I'm not interested at all in even saying how I feel about a change in the roof for any of that because there is a legal process that we have to go through, which is going to planning and zoning and doing the findings and facts and all of that stuff that
could drag this out even longer and get us in a lawsuit for not going about it the legal way. So, I I don't think we should be taking any votes or anything unless we do ask planning and zoning to look at our zoning code and see how it does or does not fit within the rules that we have. Okay. I mean, that's
essentially what I was asking for. Are we willing to go to finding zone? And if we're not, that tells them everything they need. So, I get the point. I see. Go ahead. Well, both Angland and Langel, whoever wants to respond. Just to follow up on
on what um Gabe was saying there, yeah, there's a legal process. So, under the law, a conditional use permit, you're entitled to it. You're entitled to it. If you apply for it and you satisfy the requirements in the ordinance, you are entitled to have it. So, yeah, I don't I
agree. I don't want to be stating anything here that would be contrary to that process or would somehow give rise to a claim under that under that process. you know, you can I think it's pretty clear what some people's uh viewpoints
are on on the issue. Uh but beyond that, I I I don't suggest Well, they can make the request is what you're saying. They can certainly make the request and you have to process the request. Tell them that that's going to extend the time it's going to take them to get it done. I think between, you know, Danny and us,
we can get all that figured out at this point. What we're going to do is just move forward, put together a contract, get back to them after this conversation, regardless of the roof. I mean, that's our next step. That's what we told them that we would do. Yeah. And so, we're just going to proceed. Put a
contract together, put in front of them as quickly as we can. As long as the contract is airtight, but I really think that you should give them a deadline on and add that deadline right on here. Well, the 275,000 needs to be given to us at the time you sign the contract.
There should be a deadline on when they sign the contract. No, none of this. Let's get everything in line so there's no more risk left for my company. Then I'll sign the contract. No, sign the contract, move forward, hit your deadlines. We're ready. We're ready to do that again. I don't see why it can't be the
end of the month really because we meet and we can approve as a commission and then have them sign before. We need to be ready to sign. Yep. Okay. Mr. Sandy, I was just wondering with um have you seen a proposal for
this roof removal? Do you have any inkling if it's going to meet the code at this point? So certainly I have to go through the findings of fact. Um I did state in my memo um when I did the sound calculations um didn't factor in a roof
any of the sidewalls. The sidewalls do have some air flow through them. Um but the calculations that I did were based on no structure there whatsoever because I couldn't mathematically calculate that. So um based on my calculations certainly meets the the MPCA
requirements. Okay. Anything else? We've left out all questions answered. Anybody want to sing a song? No. Kumbaya. Kumbay. It's a good one. You might not like the
song I'm singing. All right. If if there's nothing left to answer, I don't think we're needing a motion right now. I think we're in agreement. So, move to adjourn. Got a motion to adjurnn. Second by Stunic. All those in favor? I. Again, same sign. We adjourn.