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City Council Minutes June 10, 2002 Page 3 Mavor K&inzing opened the public hearing. Gary, Santwire, 200 5th Street, Elk River, was present representing Equity Management, Inc., Rivers Crossing, Inc. and D. Russell Norha and Linda M. Norha. M.r. Santwh:e reviewed the issues specified in his letter. The issues he discussed included the folloWing: 1) The application does not meet objectives in the Rebate Policy. 2) Subsidization of speculative office building xvas not the intent of the Rebate Policy. 3) Discussion about making the goal of creating 100 new jobs a requirement if this proposal is approved. The issue of whether or not speculative office space meeting really creates any new jobs. 5) The applicant not meeting the "but-for" requirement. N~. Santwire presented his review of the project financial figures that were part of the rebate request. Mr. Santwire requested the Council to deny the request due to the application not meeting the but-for test, and based on the precedent that would be set by subsidizing speculative office space, and based on the questions that he brought up regarding the applicant's financial figures. There being no further comments, Mayor Ia-dinzing closed the public hearing. John Weicht, 13330 Islandview Drive, responded to the questions regarding the financial figures. He noted that he completed the application honesty. Lynn Cas~vell 11801 Brentwood Lane discussed the issue of needing more office space in the community. The Council concurred that the project was a good project, that the project location in the west business park would help jump start business in that area, and that it was good to have local developers proposing the project. The Council had some questions regarding the policy and suggested that the policy and any guidelines be reviewed by staff and be presented to the EDA and Council. Some of the issues discussed by the Council included whether the City should be subsidizing speculative office space, whether or not job goals should be part of the policy, job creation criteria, having the financial proposals reviewed by a professional financial consultant, and if speculative space is to be subsidized, under what condition or guidelines. COUNCILMEMBER KUESTER MOVED TO CONTINUE THE ISSUE TO JULY 8, 2002, AND TO AUTHORIZE STAFF TO DRAFT SOME GUIDELINES TO BE REVIEWED BY THE CITY COUNCIL AND EDA ON JUNE 24, 2002. COUNCILMEMBER TYEITE SECONDED THE MOTION. THE MOTION CARRIED 4-0.