03-13-2002 Council Workshop Minutes

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MINUTES CITY COUNCIL MARCH 13, 2002 Mark Hotzler explained their attorney has reviewed the mortgage. They believe the use of eminent domain could allow the release of this parcel without a full prepayment. The proceeds associated with the sale of this parcel would have to go pay down the current mortgage. They are doing more research on this possibility. They also feel the bank may cooperate without the threat of eminent domain. The City Administrator informed the Council it maybe in the City's best interests to assist the owners of the Market Place by using the threat of eminent domain to allow this parcel to be split from the current property to achieve the desired location of the new drug store. A different legal entity would own this site as compared to the shopping center making this approach a realistic possibility. The Council then reviewed Option 1 of the documents included in the agenda packet with the Drug Store being the only building to be constructed. (No construction would occur on the Delonais property versus what was shown by this drawing.) This drawing depicts one row of parking between the building and Rice Street and the drive-through window on the north side of the building. Discussion then followed regarding other options for the Delonais property. It was explained that Sherman Associates has been awarded exclusive development rights for the northeast corner of Rice Street and Little Canada Road for six months. Mr. Sherman is also looking at master planning the north six acres (NE corner, US Bank, First Bank Drive, and the Delonais property). The key to this concept is the willingness of US Bank to participate. The City Administrator explained the difficulties in developing the Delonais property on its own due to the narrowness of the lot constricting development options. Mr. Hotzler and Mr. Grootwassink stated they were willing to work with Mr. Sherman on the master-planning project as they felt it would lead to better development layouts in this area. The City Administrator also commented that if the Market Place owners were not willing participants, the City could reclaim the land from them pursuant to our Development Agreement. Mr. Hotzler acknowledged the site layout difficulties on the Delonais property where a combination of the site's narrowness and the architectural guidelines make it difficult to achieve the development necessary to recoup land costs. He also stated the drug store on the shopping center site solves the challenges associated with dumping traffic from the drive-through on to public right-of- way. He noted the only issue in utilizing that site is the resolution of the mortgage that is held by a bank in Kansas City.