01-28-98 Council Workshop Minutes

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MINUTES CITY COUNCIL JANUARY 28, 1998 including condemnation, relocation, utilities and streets, and risks in extending debt out until the year 2016. Fahey reported that Chris Moarn has indicated that the City should give the land to the theater. Fahey did not feel this was a possibility from the City's standpoint. Kim Wise has indicated that Cinemark would participate in (and acquisition, but needs to know what the City is willin~ to do. Scalze asked how close Cinemark was to getting a theater complex in a major metropolitan area. The Administrator reported that there is another site they are considering in Minnesota as well as one in Chicago. Fahey felt that unless the Council felt this was a dead-end, the City should be~;in moving forward with the County on the Little Canada Road project, should obtain appraisals on all the properties in the redevelopment area, and inform Cinemark that it looks like the City will need between $5.25 and $5.75 per square foot for the property. If this price is too high, perhaps the area south of Little Canada Road can be removed from the project at this time, and the focus be on the north side of Little Canada Road. Fahey felt that for the City to take out all the property and assume the financial risks was a bit much. Morelan asked how the appraisals obtained thus far compare to the base property values. The Administrator replied that the City's appraisals are higher than the County's estimated market value. Fahey stated that he would be willing to take a risk on property acquisition if there was some commitment from Cinemark. Fahey sug~ested that the Administrator send Cinemark the numbers that Fifield had put together. Once they have reviewed this information, the City should meet with them to discuss the options. Scalze felt that without a theater, the redevelopment area will struggle similar to what is ~oing on in White Bear. Scalze again questioned the need for Middle Street. The Administrator pointed out that in order to provide access to the Rutzick property, Middle Street could be extended south of Little Canada Road via a cul-de-sac rather than going all the way through. Fahey asked if Fifield would look at the redevelopment area south of Little Canada Road and determine whether or not this area needs to be redeveloped in order to make the project cash flow.