10-07-2002 Council Special Minutes

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MINUTES CITY COUNCIL OCTOBER 7, 2002 The Administrator noted that Gordie Howe has indicated a willingness to pay up to $25,000 per unit land costs if a fall back position is needed. Fahey suggested that if the City acquires the Ultimate Golf property, it should take the entire parcel. The Administrator agreed. The Administrator noted that Sherman Associates has approval from HUD for a December closing on the senior project. The Administrator reported that the County increased the values on the Venetian property to $1.2 million. He suggested that as an incentive to proceed with a fall construction start, the City could offer 95% of the TIF increment if construction started in December versus 90% if construction started in 2003. He further noted that the City would work with the County on getting that property value reduced. Anderson pointed out that the Ultimate Golf property was not included in the project as part of the initial discussions with Sherman. The Administrator replied that Sherman is still willing to building the townhomes, but without the Ultimate Golf property is only willing to pay $12,000 per unit in land costs. Sherman has indicated that he wants the Ultimate Golf property included because of the wetland impact on the townhome development, the Ultimate Golf property allows for more density, and for aesthetic considerations. Ruff also noted that the City needs Sherman to develop the commercial site. The Administrator noted that this is the reason for tying the townhome and commercial developments together. Ruff noted that the townhome development provides the incentive for the commercial development. It was noted that the condemnation hearing on the Rutzick property is scheduled for tomorrow. The City's appraisal on the property is $600,000 and Rutzick is asking $1,060,000. The Administrator reported that when the City rezoned the area, including this property, to PUD back in 1995 or 1996, the highest and best use changed from commercial to senior housing thereby increasing its value. However, the PUD zoning gave the City more flexibility and control. The City Attorney reported that tomorrow is the hearing on the public purpose and then the quick take will occur on October 23`x. The Commissioners will meet after that to determine the value of the property. Fahey asked if the City is in a position to finalize the development agreement prior to the conclusion of the eminent domain process. The City Administrator replied that the City can proceed but we will be at risk for any cost over $750,000. The Administrator indicated that the City has other funding sources in place to cover these costs. Fahey asked if the Council should authorize eminent domain action on the Ultimate Golf property. The City Administrator pointed out that before the City takes that action, Sherman Associates needs to cancel the purchase agreement they have on the