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and Ryland are national housing developers who both proposed lower -density projects. Council chose <br />to continue with the other two developers because of projected tax increment and land payments. <br />• Sculthorp asked if either project would produce the same amount of projected revenue that the City is <br />looking for. Lotter replied that Sherman's proposal would bring in a slightly higher projected value <br />than the Rottlund proposal, with a valuation of S41 million and approximately $500,000 in annual tax <br />increments. Stuart's proposal would produce around S20 million or $200,000 in tax increments. <br />• <br />Benke inquired from Council Member Burg why this commission was not used to help review the <br />proposals. Burg replied timing was an issue and the some on the Council felt that the Commission's <br />review was not necessary when there was only a two-week window to review them. Nelson noted that <br />the Commission has met on short notice in the past to help with similar reviews and since the Council <br />has asked for additional information from the developers, the Commission could have met within that <br />time frame. Lesher asked whether the Council no longer valued community input. Burg replied she <br />does want community input, since she is not an expert in this field and she encourages the public to <br />attend the next Council work session where commission organization would be discussed. Flahave <br />asked whether the Financial Task Force has received the proposals and if they would be reviewing <br />them. Lotter replied that they have not yet received the proposals and they would be reviewing the <br />proposals. Benke asked whether they would be doing a financial review or a developmental review. <br />Lotter replied they would conduct a financial review, but would also look at the long-term plans. <br />Nelson asked for an update on APi and Transoma. Black announced that APi should be ready to <br />occupy the building in September and Transoma would be occupied by the end of this month. <br />Kauthold inquired whether APi would still be building the second building on their site. Black replied <br />that they would begin construction after the headquarters building is complete. <br />East Side <br />Black reported that there two issues that are being addressed for the hotel developer interested in Block <br />A. There is dump material that would have to be moved back 200 feet from the building, which would <br />require the material to be moved off site and is expensive. The second issue was discovered atter the <br />geotech testing was done. It was discovered that pilings would be needed to support a seven -story <br />building. The developer wants the City to cover what they deem is an extraordinary costs, which may <br />total around S1 million. The Council will have to advise whether or not the City is wilting to reduce <br />the cost of the land or cover the cost of the pilings. If an agreement is reached, construction would <br />begin in spring of 2009. <br />Black announced the AT&T cell tower is currently reviewing a possible new location adjacent to <br />Mission Foods. He noted that it would take thirty days to relocate the tower, since the new towel <br />would be constructed while the old one is still in operation. <br />Railroad Team Track and Wye <br />Fernelius reported that the construction on the team track would begin on June 19`h. The federal <br />Surface Transportation Board has agreed to the abandonment with two conditions. The first <br />requirement is that the ties are to be removed in coordination with the MPCA and secondly, a historical <br />review of the Butcher's Spur is to be completed. When these two issues are completed the City would <br />continue with the purchase of the land. <br />Page 2 of 3 <br />