CCP 09-28-2010 - Laserfiche WebLink

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August 11, 2010 where the developer would share any cost savings with the City at the end of construction, the second look back provision addresses any surplus in the event of the sale of the building. There is a significant amount of work that needs to be done in the next several months. If the Wrm sheet is approved, staff will start working with development counsel (Hoff, Barry & Kezar) on a Contract for Private Redevelopment. Councilmember Phillips recommended council consider looking at the future payments for the Park Dedication Fees, and would like to be sure the contract includes the appropriate language, as well as review the future value as part of the contract. Councilmember Phillips commented he was very pleased with the site plan submitted. Councilmember Burg suggested considering an agreement be made where the developer agrees to maintain the adjacent park area Councilmember Bauman questioned if a market study was done for this type ofproperty in this location. Stuart Nolan replied a formal market study was not conducted, however the developer stated the northern suburbs have been missing class A rental properties over the years. Mayor Jacobsen questioned the occupancy rate, Mr. Nolan reported the vacancy rate in the twin city area is about 41/o. Mayor Jacobsen stated the interest in renting could be attributed to the unstable economy, allowing a shorter time commitment than amortgage. Mr. Nolan reported the rental community has become more stable overtime. Councilmember Bauman stated she is not in agreement with the forgiving of $550,000, and questioned the deferred payment details, and requested payment prior to 2013. Councilmember Bauman reported the City currently has over 30% rental units, and this is not what she envisioned for the area Councilmember Phillips reported he understands the difficulty in obtaining commercial mortgages, and reported he was glad to have the opportunities available to get the project underway. Director Femelius reported there are still details to work out with the developer. Councilmember Bauman suggested that because the margin is low, the City is taking a risk, and suggested getting the money up front, instead of waiting until 2023. Mayor Jacobsen stated that while the City is sharing part of the risk, the hope is to share in the gains in the future. Motion by Councilmember Phillips, seconded by Councilmember Burg to direct staff and development experts to finalize a development contract with Stuart Development Company, generally inline with the term sheet as discussed. 4 Ayes,1 Nays, Motion Carried Ayes: Mayor Jacobsen, Councilmembers Phillips, Samuelson and Burg Nay: Councilmember Bauman 2. Consideration of authorizing funding for the Recreation Programmer position. Report No. 10-209. *Moved from Consent Agenda. CouncilarernberBauman stated that this item along with the next item address recent changes in staffing tin the Parks and Recreation Department. It is anticipated this position be primarily focused on Senior programming. Councilmember Bauman suggested the compensation be reduced to $22,000 annually. Motion by Councilmember Bauman, seconded by Councilmember Phillips to authorize the Oransfer of funds, previously earmarked for the parks non -fleet fund in 2011, to pay for a permanent part-time Recreation Programmer (1040 hours) not to exceed $22,000 total compensation. Page 4 of 6 2 Conwbll ion of mahonsngfuw1Wgfor 6eReawaon pmgirnmnerp=twn ReportNo. 14209.