06-19-1989 CC MIN - Laserfiche WebLink

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e e e Page 6 City Council Minutes June 19. 1989 Councilmember Holmgren stated that he did not feel the project of extending sewer and water to the motel conference site is as risky as others view it and further stated that he sees the project as a catalyst for future projects in the area which could help generate money for the improvement and stated that because of this he is in favor of the proj ect. Mayor Tralle indicated that he felt the City would be taking a risk in extending sewer and water to the motel conference site. He indicated that he would be more open to the idea if future TIF money would be utilized for the utilities. He stated that he would like to see concrete proposals on future developments from the adjoining pieces of property. Mike Leary indicated that in almost all of the facilities similar to theirs being proposed. a restaraunt is located adjacent to the motel. He indicated that no one will look at the property if sewer and water is not extended to the area. He stated that it will be difficult to develop the property when there are more small businesses starting in that area. Councilmember Schuldt questioned how the project would be paid for. Dick Fursman. Economic Development Coordinator. indicated that they could hope that the development in the area would pay for the project. He indicated that the TIF #4 money and the excess increments from 1 & 3 are all uncertain to some degree. Councilmember Kropuenske stated that he strongly supported the motel conference plans but further indicated that he is questioning how the City will make the payments on the project. He indicated that he is not willing to gamble and say that the City will spend the excess monies from TIF districts 1 & 3. because there is no assurance that the money will be there. He indicated that he would not be willing to sign off on spending $800.000 until he was sure that the City had the money. Councilmember Dobel stated he would like to give support to the developers and their project but stated that the City does not have the money and indicated that he feels the Council should know where the money is coming from before they make their decision. COUNCILMEMBER HOLMGREN MOVED THAT THE CITY ASSI ST WITH THE SEWER AND WATER PROJECT TO THE MOTEL CONFERENCE CENTER SITE IN FALL OF 1989. COUNCILMEMBER SCHULDT SECONDED THE MOTION. THE MOTION FAILED 3-2. Councilmember Kropuenske and Mayor Tralle voted against the motion. Councilmembers Schuldt. Holmgren and Dobel voted for the motion. The motion failed due to the lack of a 4/5 vote. COUNCILMEMBER DOBEL MOVED TO DIRECT THE STAFF TO PREPARE A REQUEST FOR PROPOSAL (RFP) ON THE STUDY FOR THE EAST HIGHWAY 10 UTILITIES EXTENSION AND THAT RESERVE MONIES WILL BE USED, M COMING OUT OF THIS YEARS BUDGET AND THE SECOND M COMING OUT OF NEXT YEARS BUDGET. COUNCILMEMBER HOLMGREN SECONDED THE MOTION. THE MOTION CARRIED 5-0.