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City Council Minutes Page 9 <br />September 21, 2020 <br />Mayor Dietz questioned what public improvements are proposed and the <br />approximate value of each. <br />Jesse Hartung, Modern Construction, stated the total combined public <br />improvements are in excess of $5 million. He explained the largest cost will be the <br />public parking ramp and associated improvements ($2.5 million), second story park <br />($500,000 - $1 million), greenway with a public sidewalk and improvements to <br />Highway 10 ($1 million), public lobby ($1 million). Mr. Hartung stated the goal is for <br />these areas to be privately held but be available for public use outlined in a <br />development agreement. He questioned if the Council is comfortable with a 45% <br />increase in public parking spaces. <br />Councilmember Ovall questioned how this would work with areas being public <br />spaces without city control. Mr. Hartung indicated he is proposing public areas be <br />outlined in the development agreement. Attorney Back outlined several options <br />including an easement, incorporating into the development agreement, or by deed. <br />He explained the development agreement would be recorded and continue to <br />perpetuity. <br />Mr. Hartung stated he is open to working with city staff on a public/private <br />partnership that makes sense. He added one caveat is he would like to include a <br />clause allowing him to take back ownership if down the line it is found the public <br />r parking capacity is excessive. <br />` Mayor Dietz questioned estimated SAC and WAC fees, park dedication, and building <br />permit fees would be on the proposed project. Mr. Carlton explained it is difficult to <br />estimate based on a shell because fees vary by use. He stated he asked the building <br />official to estimate based on shell of what is proposed today, and the estimated <br />SAC/WAC fees would be approximately $1.2 million. He noted it will change based <br />on the uses. He stated the park dedication fees are more open-ended and would <br />require City Council discussion. He indicated building permit fees on a $35 million <br />building would be about $217,000 for a fee total of approximately $1.5 million. <br />Mayor Dietz indicated a city swap like this is setting a dangerous precedent and has <br />never been done. He explained the city uses the SAC and WAC fees to pay for <br />bonds for sewer and water projects. He added the park dedication item would have <br />to be discussed by the Parks and Recreation Commission to see if they want to <br />accept as park dedication or if they want the cash. He added many businesses have <br />come through the city and paid the fees so it would be difficult to do it for this <br />project. <br />Mr. Hartung explained he believes if a developer comes to the city offering $5 <br />million in improvements it warrants waiving $1.5 million in fees for the developer. <br />Councilmember Christianson questioned if a project like this has been done. Mr. <br />Hartung explained his inspiration is the West End in St. Louis Park, but he doesn't <br />believe any project exactly like this one exists in the state. Attorney Beck stated there <br />P 0 1 1 R 1 0 8 Y <br />NATURE <br />