11-21-01 Council Special Minutes

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MINUTES CITY COUNCIL NOVEMBER 21, 2001 The City Administrator did not agree with Roycraft's concerns relative to a market rate rental senior building. He stated most seniors who rent this type of unit will do so as long as they are physically able. This is not a transient population group. Scalze noted that if the City does the project, it is likely that rents could be $150 to $200 per month less. Anderson asked if Johnson and Rutzick need to develop both phases proposed on their concept diagram, or if developing Parcel B alone would work. Rutzick asked that the City give him the development rights for the property for the next 3 to 6 months. During that time frame, he and the City would negotiate a deal. The City Administrator indicated that by utilizing the RFP process it is the City's hope that construction on a project would commence within 6 months. Fahey stated that his concern would be for a long drawn out negotiation with Johnson and Rutzick, and pointed out the urgency to get a project done. Fahey agreed that Johnson and Rutzick have submitted other development concepts and that the City has now changed the playing field from aretail/office development concept to a retail/senior-housing concept. Anderson asked about the piece of land labeled "Rutzick Remnant" shown on the Rutzick/Johnson concept plan. Johnson pointed out that this piece abuts residential property and could be attached to the Winter property should that ever redevelop. Fahey asked how Johnson and Rutzick felt about the City's developing and owning Phase I, and allowing Rutzick to develop the remainder of his property. Rutzick stated that if the City needs any of his land, it will have to buy all his land unless the front portion would be rezoned to commercial and rental market rate housing could be developed on the back. Rutzick stated that they would like to develop the entire project for the City, both Parcels A and B as shown on the concept plan they submitted. Knudsen asked if there was any reason for the City to own the building other than the ability to give preference to Little Canada residents. Fahey stated that the only other reason would be the ability to offer more affordable rental rates given the City's access to less expensive financing. Fahey acknowledged, however, that the City may not be as good at developing a senior project as others might be. Scalze also pointed out the control factor that the City would gain as well as the fact that it would own an asset after the financing is paid off.