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MINUTES <br />CITY COUNCIL <br />JANUARY 28, 1998 <br />the building is located in the middle of the site and doesn't fit with the <br />redevelopment of the rest of the area. <br />DeLonais stated that perhaps the site is underutilized, but noted the <br />amount of people the bank serves. Joe Vitale stated that the bank does not <br />service the business people in the community, and in order to obtain these <br />types of services, businesses have to use their branch on Payne Avenue. <br />Vitale felt there are other banks that would locate in the redevelopment <br />area. <br />Scalze asked if Cinemark will put up the money to take out the entire <br />redevelopment area. <br />The Administrator felt that until the buildings are built, Cinemark should <br />pay full value for the land. Until buildings go up, it should be their risk, <br />otherwise how will the City guarantee it has su~cient cash flow to meet <br />debt service obligations? <br />Fahey indicated that Cinemark will either develop the area themselves, or <br />will bring in other parties. However, they want exclusive rights to develop <br />the area. The Administrator felt that Cinemark will bring in other parties <br />to assist in the redevelopment given their nationwide expansion plans. <br />Morelan pointed out that if Cinemark pays the land costs up front, the only <br />risk to the City would be the lost tax revenue. <br />Fahey indicated that Wise wanted to know how much the City would put <br />into the project and how much Cinemark would have to pay per square <br />foot for land costs. <br />The City Administrator reviewed preliminary financial analysis figures for <br />the redevelopment which were prepared by Rusty Fifield. These figwes <br />showed that a price per square foot of $5.25 was needed in order for the <br />bond issue to cash flow at a 3.5% class rate and $5.78 per square foot at a <br />3.0% class rate. The Administrator also pointed out that a"pay as you go" <br />situation would be the idea] situation for us This analysis assumes the <br />City is bondin~. If the property tax system changes, those are risks that <br />the City cannot measure. The class rate may not become an issue until 10 <br />years into the bond issue. The Administrator a]so pointed out that the <br />analysis shows 180,000 square feet of development; however, he felt the <br />square footage needs to be higher than that. <br />The Administrator reported that the City cannot obtain appraisals until <br />approximately April Is`. There is also the need to push the County on the <br />road design. There are a lot of variables in the financial assumptions <br />4 <br />