07-08-09 Council Workshop Minutes

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MINUTES CITY COUNCIL JULY 8, 2009 McGraw asked what timetable for what happens next. The City Administrator pointed out that consideration of the Interim Use Permit extension was continued until the July 22, 2009 Council meeting. However, the Council should act on the Fra-Dor agreement prior to extending the IUP. McGraw noted that certain discussion items are fluid given the state of the economy and felt that the Fra-Dor agreement should be drafted to identify those issues with flexibility. Keis noted that there are also several solid issues, such as the fact that the property would be put on the market in three years, the IUP extension would be for a five year period, the gravel tax would be waived for City projects that Frattalone is awarded, etc. The City Administrator indicated that he would draft the agreement in such a way as to identify the issues that have flexibility potential and those that do not. The Administrator indicated that he would work with the City Attorney on the agreement, and forward it to Mr. Frattalone for his and his attorney's review. Frattalone asked that the agreement be ready for consideration by the Council at this July 22"`~ meeting so that action could also be taken on the IUP extension. Frattalone indicated that he is refinancing his property and the bank would prefer to have the IUP extension in place as soon as possible. The City Administrator suggested that action on the IUP extension could be contingent upon final acceptance of the Fra-Dor redevelopment agreement. Ile suggested that he could have air outline of the agreement ready by July 22"d. Kocky Waite indicated his support for the Fra-Dor business and suggested that given the economy as well as the potential for competition with redevelopment sites in St. Paul, that the Council consider a 10-year extension of the IUP. Waite also suggested that the City provide redevelopment incentives to Mr. Frattalone. Blesener noted that the City has agreement with Mr. Frattalone for the five-year extension. It was suggested that the state of the economy will be considered in the future as the five year redevelopment deadline approaches. The City Administrator outlined the discussion processes that have occurred with Mr. Frattalone over the past year on this issue. He also reported on the potential to use Tax Increment Financing as a redevelopment incentive. However, at this point the redevelopment plan is too vague to put together a solid •I'IF Plan. Frattalone stated that he was satisfied with the five year extension and understands the City's desire to have the area redeveloped. Frattalone indicated that the City Council has worked cooperatively with him on this matter, but he appreciated Mr. Waite's comments.