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<br />1 <br /> <br />I <br /> <br />I <br /> <br />Council Meeting Minutes <br />February 28, 1989 <br /> <br />Page 16 <br /> <br />Council Business, continued <br /> <br />Benke asked about the possible traffic problems involved in this <br />project. Locke said there could possibly be some traffic and site <br />issues, but they would be worked out before the approval of the site <br />plan. <br /> <br />Jim Casserly, City Financial Consultant, explained the financial <br />aspects of the proj ect. The proj ect woul d be fi nanced by the <br />issuance of some sort of debt. The proposed debt would entail less <br />than 15 years, wi th 10 1/2 years of full increment, 2 years of <br />partial increment, and 2 1/2 years of capitalized increases. After <br />the project is completed, the tax increment would be approximately <br />$120,000 with current taxes being $30,000. 'These additional taxes <br />would be used to finance other costs involved. The developer would <br />pay $2.25 per square foot and potentially another $175,000 for soil <br />corrections. In his opinion, this is a very tight budgeted project. <br /> <br />Locke explained that Council Business Item #9, Consideration of <br />Authori zat i on to Execute a Purchase Agreement with Hydro-Stream- <br />Pipkorn Ltd. Inc. has been removed from the agenda. The reason for <br />removal is because the purchase agreement negotiations have not yet <br />been completed. <br /> <br />Benke confirmed that the execution of the development agreement is <br />contingent upon a satisfactory approval of the purchase agreement. <br /> <br />Brandt acknowledged that the project requires the acquisition of two <br />sites. Locke verified that negotiations would begin on the second <br />si te after a sati sfactory purchase agreement with Hydro-Stream- <br />Pipkorn is negotiated. If there is a problem with acquiring the <br />second property, a Power of Condemnation would then be required. <br />Staff feels confident that the project is feasible after a <br />satisfactory agreement is negotiated with Hydro-stream-Pipkorn. <br /> <br />Benke verified that D Rock Center is currently reluctant to <br />participate in the purchase agreement, but hopefully, a satisfactory <br />agreement could be negotiated. <br /> <br />Gunderman asked Locke the details of the needed soil corrections. <br />Locke said the soil tests on the Pipkorn site have been completed <br />and estimates for the 0 Rock Center site are underway. It is <br />anticipated that some soil correction would be needed on both sites. <br />Locke sai d the cost for the soil cor recti ons belongs to the <br />developer. <br /> <br />Council Business <br /> <br />Interstate Centre <br />Development Agreement <br />Report 89-51 <br />Resolution 89-27 <br />