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I I I Council Meeting Minutes September la, 1985 Benke noted the difference of six to nine months between the two proposals in terms of commencement of construction, and the difference of $5,000 in price of land. Nelson indicated JLN will pay same price as Welsh offered. Winkels indicated that both companies' offer is to negotiate a Development Agreement for the property; JLN offers some speci- fics they want included in the Development Agreement (values in place as of January 1987 and January 1988, and additional assist- ance for a project value exceeding an original $2 million). Frank addressed the time-span element with the property to the north; and explained the development proposal was made as non- contingent as possible; stated JLN would be willing to offer a higher price for the land. Peter Capps, AT&T, responded to Harcus's question by stating that he had interviewed the two development groups and that AT&T is interesting in working the Welsh. Capps stated further they have started some preliminary negotiations and are anticipating a November groundbreaking. In response to Benke's question, Capps indicated the building would be a Regional Distribution Center housing telephones, personal computers, switching systems, etc. open eighteen hours per day using 24 over-the-road trailers and 16 step vans. In response to Benke's question, Winkels indicated that JLN has indicated they will build a building, being confident they can fill the space. Nelson indicate they are proposing an office/warehouse-distribution- corporate headquarter type of facility, showed sketches of proposed project. Motion by Blomquist, seconded by Harcus, to AUTHORIZE STAFF TO ENTER INTO NEGOTIATIONS ON A PURCHASE AGREEMENT AND A DEVELOPMENT AGREE- MENT WITH WELSH COMPANIES. Frank stated JLN would offer more money, $100,000 more than what is on the table. Harcus felt it would be unfair to the other developer. Capps stated both are quality developers with site plans acceptable to AT&T, but the user group selected Welsh Companies for a variety of reasons. In response to Benke's request for guidance from staff, Winkels noted the similarities in the proposals; noted that JLN owns addi- tional property to the north, had letters from real estate companies and development companies that have clients interested in locating on the site; Welsh had a tenant in hand. Winkels suggested that one alternative would be to have both developers negotiate a Development Page Seven