08-28-2002 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL AUGUST 28, 2002 Ayes (5) Scalze, Montour, LaValle, Anderson, Fahey. Nays (0). Resolution declared adopted. DELONAIS Mark Ruff, Ehlers & Associates, reviewed in detail his report dated PROPERTY August 28, 2002 relative to financing recommendations for TIF District No. 3-2 (Rice Street and Little Canada Road) and the implications that these recommendations have with regard to the pending development agreement with Sherman Associates. The City Administrator noted the status of the DeLonais property in relation to these financing recommendations, and indicated that the Bob Grootwassink and Mark Hotzer are close to entering into a purchase agreement with a prospective buyer of the property. He noted that should the property be sold, it may impact the City's ability to put together a coordinated development in the area. The Administrator also pointed out that Grootwassink and Hotzler are in default on their development agreement for the property. Anderson asked how the sale of the property would impact the City's ability to coordinate the development given that any development of the property will have to meet the City's architectural guidelines. The Administrator indicated that site layout will be impacted if the US Bank property cannot be included in development plans given width limitations on the DeLonais property. The Administrator noted that Sherman Associates is working with US Bank to redevelopment their current site and relocate as part of a coordinated redevelopment of this area. It was noted that Sherman Associates is hoping to have a definitive answer from US Bank very shortly on whether or not they will redevelop. The City Administrator indicated that he would prefer to not exercise the City's default option, if Grootwassink and Hotzler enter into a purchase agreement to sell the DeLonais property, this could negatively impact the City's redevelopment efforts. Montour asked if the fact that the City has not acted on its default option earlier will negative impact the process. The City Administrator indicated that the City reminded the owners in the Spring of 2001 of the City's default option, however, did not officially exercise that option after default in November. The City Attorney indicated that because the City did not enforce the default provision earlier, does not mean the City has waived its rights under the option. Mr. Fahey introduced the following resolution and moved its adoption: 17