Laserfiche WebLink
Delaune suggested that it is valuable to go through various possible outcomes to minimize any surprises <br />and have some quantification of the financial impacts, adding that he appreciates that staff is working on <br />this modeling. Lotter replied that he appreciates Delaune's comments, but the Council would decide what <br />they would like to see from staff and the commissions. Stang agreed that staff has a difficult task because <br />there are so many variables involved. He added that while everyone would like to have a plan, people <br />have to understand that the plan might have to be adjusted and that staff is doing the best they can. <br />Delaune suggested that there be best and worst case scenarios; the City Council can only make good <br />decisions with the best information at hand. Nelson indicated that the Council will decide whether the <br />Commission shotild review these numbers after they see them in January. Delaune requested that staff <br />should keep the Commission informed of the process. Benke noted that staff has been criticized from not <br />having a "Plan B," however there was an agreement in place with Rottlund which prevented staff from <br />talking with other developers. Larson noted that Pratt Ordway and United Properties have indicated that <br />they are interested in the development. Ile added that once Rottlund realized there were other developers <br />interested in the site, they offered a settlement which would allow them to still develop a portion of the <br />site. Black noted that when the plan was Iirst developed the housing market was extremely "hot," it has <br />since turned and now commercial development has picked up. He suggested that development is cyclical <br />and the market would eventually turn again. <br />East Side <br />Black reported that Transoma is currently under construction; however some scaffolding collapsed lass <br />week during a wind storm. No one was hurt during the collapse, since it happened during the evening; <br />however it came close to crushing a propane tank. <br />Black noted that agreements on a number of important projects have concluded this month, including the <br />post office retail and the annex sites, Dalco, and the railroad spur. <br />Black reported that the Sheraton hotel developers are still interested in Block A. The cost and scheduling <br />of the dump closure, the price of the land and an option for Block B are the key issues being discussed. <br />Benke asked whether they are willing to pay for the option. Black replied that negotiations have not gone <br />that far; they are interested in developing an extended-stay hotel and an office building on that block. <br />However, the PCA has stated that the dump must be closed and the gas collection system in place before <br />it will allow any more development on the east side. Staff must determine whether the hotel developer is <br />willing to take title and start construction before the dump is closed. Stang asked whether the hotel <br />owners own other properties or if they are just a developer. parson replied that they own several other <br />hotels. Black replied that the developer is Wischermann Properties and the owner would be JhT Uroup; <br />both are very experienced. Stang asked how large the hotel would be. Black replied that they have <br />proposed aseven- story hotel with 200 rooms and a restaurant. Stang asked how this project compares to <br />the Iomewood Suites project. Black replied that the JLT Group has indicated that they are targeting <br />different markets, with their price point being $150 to $160 a night, with full amenities, while the <br />Homewood Suites would be $120 to $125 a night with limited amenities. Stang asked whether <br />Wischermann is aware of the Homewood Suites project. Black replied that they are aware of the other <br />hotel development and have been moving forward with plans. Stang replied that he is glad to know they <br />are working on plans without the dump being closed. <br />Kaufllold asked what the repercussions would be if the level of cleanup that the City is hoping for is not <br />achieved. Fernelius replied that staff is still working through the details of the cleanup, but needs to find <br />out what will be required by the developers. He added that the hotel is on a fast track and staff is working <br />to determine the timing of the dump closure to assess whether it would work for the hotel developers. <br />Page 2 of 3 <br />