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City Council Minutes <br />September 8, 2020 <br />Page 2 <br />Private Equity — 20-30% equity supplied by very small group of investors <br />(himself and a few others) <br />Bank Mortgage — mortgage financing will take over after occupancy <br />(construction financing will convert over to mortgage at a point of a certain <br />occupancy level, slating to be a 20-year mortgage) <br />Incentive — public incentives to offset some costs of public improvements <br />Mr. Hartung outlined the public incentives and proposed a trade in -kind <br />improvement of land and all permits, utilities, and related fees in return for the <br />public improvements being made to parking, restrooms, street/sidewalks, <br />greenspace, and informational lobby. Mr. Hartung stated he wants the city and the <br />taxpayers to win on this project and stated for every $3 of public improvements, $1 <br />is credited towards fees. He feels this partnership would greatly benefit the city <br />because taxpayers would receive an instant 300% return on their money. He <br />explained in addition to the expansion of public amenities and services, the city will <br />save millions in cash, labor hours, and equipment time for the long-term upkeep of <br />the existing lot. He stated if this project does not happen, the city will have the same <br />parking problems, lack of additional public amenities, and pass over a wealth of <br />economic activity and population growth. He then outlined the project against the <br />Comprehensive Plan and stated he felt this project fulfills many of the plan's goals <br />and objectives. <br />Mr. Hartung asked the City Council and the HRA to consider the following: <br />1. To agree in principle to the incentives with the final decision and dollar amounts <br />based on 3' party ROI determinations. <br />2. To accept parking quantities proposed as a worst -case minimum, with an <br />understanding that additional improvements may be possible. <br />3. Have a willingness to consider alternate street and traffic flows downtown if <br />studies indicate improvements are possible. <br />4. Offer a commitment that the city will work as fast as Mr. Hartung can to get <br />final documents back to the city council for review and approval. <br />Mr. Hartung stated his original request was going to be to merge the Planning <br />Department with the Street Department as he felt those departments are good at <br />putting up roadblocks but felt that request was bold. He stated he simply wants the <br />council to direct Mr. Portner to direct city staff to say, let's make this thing happen, <br />let's not put up roadblocks, let's not fight along the way. <br />Chair Toth asked how many feet down the proposed parking levels go. <br />Mr. Hartung stated each level would be 11' so approximately 22' below. He stated <br />Bogart and Peterson are providing historical site data as he has heard there is a <br />stream running underneath the proposed area, but they did not feel it would be a <br />huge concern. He stated before spending money on drilling, he would await their <br />findings. <br />Chair Toth asked where the Farmers Market would be held. <br />P D I I R E I I Y <br />NATURE <br />