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I I I Council Meeting Minutes June 25, 1996 Page 4 Council Business. continued Locke presented the amendment to lEG's redevelopment contract for Lakeview South Business Park. With the approval of the previous agenda item, he noted that lEG is currently executing two signiticant projects within New Brighton. For any redevelopment project, a letter of credit is required for security prior to the project's beginning or completion. The City requires this for both the Lakeview South Business Park and BCP II projects. The City's fInancial consultant, Casserly Molzahn, and staff concluded that they would not need $150,000 letters of credit for each separate IEG project. A $75,000 letter of credit for the Lakeview South project is acceptable if the City received a $150,000 letter of credit for the BCP II project. Locke noted that because the Lakeview project has begun, it greatly reduces any risk to the City. Williams asked how is the letter of credit amount determined. Locke said staff reviews the risk level associated if a developer defaulted on the development agreement, and if the increment generated from the project covers City costs. The highest risk is when the City acquires a property before development begins. It is standard practice to include in the agreement that if a developer cannot follow through on obligations, the City has right to seize the property. Because Lakeview has three distinct buildable sites, the default risk is lower because attracting another developer appears attainable. Motion by Williams, seconded by Larson, to WAIVE THE READING AND ADOPT THE RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A FIRST AMENDMENT TO THE CONTRACT FOR PRIVATE REDEVELOPMENT (LAKEVIEW SOUTH) BY AND BETWEEN THE CITY OF NEW BRIGHTON AND INDUSTRIAL EQUITIES GROUP, LLC. 4 Ayes - 0 Nayes, Motion Carried. City Manager Matthew Fulton presented the Councilmember of the Month Guidelines. Council established the Councilmember of the Month program in May 1996. Its purpose is to provide an opportunity to municipal commission members and the community to participate in Council activities to gain a perspective of what it takes to successfully meet this signiticant civic responsibility. Establishing guidelines for this program assists participants in having a successful experience. Staff will work closely with the participants to ensure all guidelines are understood and to respond to any questions. The guidelines are as follows: 1. Participants are encouraged to tour municipal projects' areas, and staff and Councilmembers will coordinate tours. Participants will get all public information and will be invited to all meetings other Councilmembers attend. At the Council meeting, the participants will be expected to follow normal protocol, including being recognized by the Mayor prior to speaking. The participants shall handle themselves professionally whenever discussing municipal issues with the public, recognizing they are not elected officials and do not represent the City in any official capacity. The participants shall occupy a seat at the Council table for Council meetings only. Other meetings they shall sit at the staff table in the audience. Participants will be given an evaluation form at the end of their participation. 2. 3. 4. 5. 6. Council Business Lakeview South Business Park Report 96-138IResolution 96-043 Councilmember of the Month Guidelines Report 96-139