01-31-1994 CC MIN - JOINT - Laserfiche WebLink

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City Council Minutes January 3], ] 994 Page 2 e square foot retail office facility to be located on the EDA Main Street redevelopment site. Bill reviewed the background of the request which storted with a public hearing on November 15, 1993. Bill Rubin reviewed the history of the site. The site has been vacant since a fire which destroyed existing buildings six years ago. Efforts to redevelop the site were done in vain. The property was then acquired in 1991 for $109,000 by the City and title conveyed to the EDA. TIF plans 1 and 3 were amended to reflect the budgetary expense of acquiring the property. Bill Rubin stated that at the present time, the developers ore requesting $235,000 in TIF assistance; $165,000 for site preparation and $70,000 for land acquisition. Chris Bulow, agent for the developer for the project, indicated that this project was started one yeor ago. The project is a feasible project. Mr. Bulow stated that the downtown corporation and the Chamber of Commerce met to discuss this project. No negative comments from either group were heord regording the project. e Gary Santwire, consultant for the developer, stated that the site as it is, is unacceptable. Mr. Santwire stated that the project, if developed as proposed, will produce a building valued at $625,000 which will pay real estate taxes and will provide $70,000 to pay back funds the City originally spent to purchase the property. If the property becomes a park, approximately $50,000 will be necessary to make the improvements. This $50,000 along with the $70,000 the City will lose from the Kjellberg development will total $120,000 that the City will lose. Council member Holmgren spoke regording the size of the project and the fact that the building is the maximum size the project can support. He also discussed the issue of the developer moving the project along with the impression that the project would be approved. He stated that the fact that the Council changed direction toword the end of the project was unfair to the developer. COUNCILMEMBER HOLMGREN MOVED TO APPROVE THE TIF PLAN FOR TIF DISTRICT NO. 12. COUNCILMEMBER SCHEEL SECONDED THE MOTION. THE MOTION FAILED 2- 3. MA VOR DUITSMAN AND COUNCILMEMBERS DIETZ AND FARBER VOTED AGAINST THE MOTION. COUNCILMEMBER HOLMGREN MOVED TO DIRECT BILL RUBIN AND THE EDA TO CONTINUE TO MARKET THE SITE OR TO SELL THE SITE OUTRIGHT TO A DEVELOPER. COUNCILMEMBER FARBER SECONDED THE MOTION. THE MOTION CARRIED 5-0. 5.7. Consider Altemate meetinq dates for City Council and Sherburne County Boord ioint meetina It was the consensus of the Council to hold a joint meeting with the Sherburne County Board on Morch 7, 1994. This is a regularly scheduled Council meeting. e