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MINUTES <br />CITY COUNCIL <br />FEBRUARY 25, 1998 <br />pointed out that the site plan is dependent on the valuation of the square <br />footage. <br />Fahey felt that the City needed to make some assumptions and get a site <br />plan on paper. A 50,000 office/50,000 retail mix or an equivalent that gets <br />to the valuation the City needs is what he is looking for. Fahey felt such a <br />site plan will show what the land price will be. <br />The Administrator pointed out that if Cinemark tells the City what they are <br />willing to pay for the land, the City can tell Cinemark what the build-out <br />valuation must be. A$4.00 per square foot purchase price will equal a <br />certain square footage build-out. The Administrator felt that this can be <br />addressed in the Development A~reement. <br />Fahey asked if the City acquires 14 YZ acres if enough build-out can be <br />accomplished to generate a$4.00 per square foot land cost. The <br />AdminisU~aYOr replied that that is a possibility; however, is the build-out <br />then three-store office buildings, a combination of office buildings with <br />retail, etc.? These factors have to be addressed in a site plan prepared by <br />Cinemark. <br />Fahey restated that the plan would be to put the land cost/build-out <br />assumptions in a Development Agreement and structure the financing to <br />be "pay-as-you-~o". The Administrator agreed that the Development <br />Agreement is needed to set the parameters of the project. Again, a <br />meeting has been scheduled for Friday with Briggs & Morgan and Ehlers <br />& Associates to draft the Development Agreement. <br />Fahey suggested that the developer needs to know how much the City <br />expects him to build and what combination of uses would be rec~uired. <br />The Administrator pointed out that under the "pay-as-you-go" method, the <br />developer puts up the front end costs, and the risk is his. Without "pay-as- <br />you-go" the City would need a rock-solid commitment to build. <br />Morelan pointed out that the more expensive the property is to acquire, the <br />more build-out that will be required. <br />The Administrator stated ThaY Yhe City needs to tell Kim Wise what the site <br />is and the acreage involved. Once that information is provided to Wise, he <br />will put together a site plan. The City will give Wise the parameters that <br />he has to work with as far as build-out and valuation are concerned. <br />Hart asked the time frame for getting all this accomplished <br />