02-13-2002 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL FEBRUARY 13, 2002 Scalze asked if Morton was in negotiations with any other prospective tenants. Morton replied that he is in discussions with a dentist that would like to be located in this area. Morton noted that US Bank is requiring apre-lease of 45% of the building. If that pre-lease is accomplished, then conventional financing is in place. Morton stated that he would prefer to obtain his own financing, but asked the City's position on providing short-term financing should the pre-lease requirement not be met. Morton indicated that he should know within the next couple of weeks whether the mechanical company will proceed with a lease. Scalze asked if there would be any fumes or odors as a result of the testing function that the mechanical company performs. Morton replied that there would not He anticipated that 1,000 to 2,000 square feet of the 20,000 square feet they need would be utilized for testing. He noted that the use would be primarily ofi'ice in nature. Morton again described his idea of putting a basement under a portion of the building for this mechanical company's testing operation. Morton stated that he will present City staff with the results of his negotiations within the next couple of weeks. He indicated that he would then like to proceed with finalization of a development agreement as soon as possible. Morton again asked if he would have public financing to fall back on should the pre-lease requirement for the conventional financing not be met. The City Administrator noted that public financing does present some risk to the City since there may be no tenants for the building in the short-term. I-Iowever, the City would have the developer's equity position to fall back on. "fhe Administrator suggested that he have Ehlers & Associates review the developer's financing position over the next couple of weeks and put together a risk analysis for the Council's consideration. Montour stated that he is struggling with the idea of the City providing short- term tnancing. Montour noted that it appears redevelopment is imminent for the southeast corner, and suggested that the City not rush into any financing commitments at this point. Montour stated that he wanted to ensure that whatever happens on the northeast corner compliments the redevelopment that occurs on the southeast corner. Fahey felt that the two developments will complement one another and noted that the City will require that coordination occurs. Morton stated that he wanted to get a development agreement in place to level the playing field.