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MINUTES <br />CITY COUNCIL <br />SEPTEMBER 27, 1995 <br />The City Administrator replied that that would be his <br />assumption. <br />Pedersen asked if TCF was open to discounting the <br />property. <br />Grootwassink replied that hard numbers have not been <br />discussed at this point. <br />Fahey pointed out that the City would be providing some <br />pass-through financing for the developer. This <br />financing will help to facilitate the remodeling of the <br />shopping center consistent with the architectural <br />design of the area, and provides $150,000 to the City <br />for infrastructure improvements for the area. Fahey <br />asked what the risk is to the City. <br />Fifield replied that there is relatively minimal risk <br />to the City. The financing will be in place for a <br />limited period of time; the project should cash flow <br />well; and it is in the City's best interests to see <br />things happening. If the developer does not perform, <br />the building would come back to the City with the <br />improvements. Fifield felt it was in the City's best <br />interest to see the improvements happen. Fifield <br />stated that he saw no reason to believe the financing <br />proposal would not work. Details still need to be put <br />together; but conceptually, the proposal works. The <br />proposal also creates dollars for the City to use for <br />infrastructure improvements. Fifield felt the proposal <br />was a winning situation for both the City and the <br />developer. <br />Pedersen asked what happens if there is no financing <br />available in three years. Pedersen asked if the City <br />could extend the financing. <br />Fifield suggested that that issue would have to be <br />addressed in the development agreement. At this point, <br />the Council would be agreeing to a preliminary <br />development agreement. It is the intent that the three <br />year obligation would be paid off at the end of three <br />years. However, provisions can be included for <br />extension of the financing. <br />Morelan asked how the three-year time period was <br />arrived at. <br />Fifield replied that it was felt three years was a <br />reasonable period of time to get the facility leased <br />up, get improvements made, and show that the shopping <br />center is a stable operation. The developer should <br />4 <br />