04-30-96 Council Workshop Minutes

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MINUTES CITY COUNCIL APRIL 30, 1996 the City will provide assistance. i Fifield indicated that without site control, developers will have no idea about the capacity of the City to deliver. The City Administrator felt obtaining options on properties was the way for the City to assemble sites. If the City holds an option and a developer comes forward to develop the site, the option price would be deducted from the sale price of the property. If the property is not developed, the City is out the cost of the option. Much less up-front cash (risk) is required under this arrangement. Morelan asked about relocation expenses. The Administrator replied that relocation expenses will come up in discussions with property owners about option.agreements. Scalze asked if the options would be saleable to a developer in order to avoid relocation expenses. The Administrator pointed out that the Guerin property will probably be a condemnation situation because of the capital gains tax. The Administrator thought relocation expenses may be negotiable with the property owner in some cases. However, they are not in the case of tenants. Morelan asked if the cost of condemnation can be negotiated. The Administrator pointed out there is a board of commissioners who meet and set a condemnation value based on appraisals. Scalzeiasked if the Guerin~s have indicated how much they would like for their property. The Adininistrator thought the Guerin's were looking at the Holiday lease as a factor in determining the value of their property. The Guerin's have indicated they are willing to talk to the City and are interested in getting something done. The Administrator suggested it may be feasible to come to a negotiated price for the Guerin property, and then use condemnation to finalize the transaction. Morelan asked what other expenses would be funded from 4