03-04-98 Council Workshop Minutes

Home Browse Search

MINUTES CITY COUNCIL MARCH 4, 1998 the City Administrator talk with the Guerin Family and bring back a recommendation at the March 11°i Council meeting. The City Administrator recommended that if a price cannot be agreed upon, the City should proceed to acquire the property through condemnation. Tenants would be eligible for relocation benefits. Morelan asked if the appraisal of the property should be updated. The Administrator indicated that he could ask the appraiser if valuations have risen since the last update was done. Morelan stated that he would like to see an offer made and felt that the appraised value may not be fair since the appraisal is two years old. Morelan pointed out that there would be costs saved by not condemnin~ the property. The Administrator pointed out that the appraisal could be updated, but the reality is that the two figures are so far apart that the appraised value will not move enough to make a difference. The City Administrator reviewed the draft development agreement on a point by point basis. Pointed out in this review is the fact that finances would be structured on a"pay as you go" basis. This eliminates the risk for the City. The Administrator felt that a 3.5% class rate was a real possibility. This program will fund the City's public improvement costs and does not contemplate any direct City doliars into the project. The Council discussed the provision relating to environmental work that may be required. The Administrator suggested that before the City takes on any sites, it will want to do an environmental review. Fahey directed the Administrator to present the draft development agreement to Kim Wise as well as the site diagrams that Michael Schroeder will prepare. The Council discussed the condemnation process in detail with the City Attorney providing a timeline for a"quick take" process. This process gives the City title to a property within 180 days. However, the City actually obtains title to the property prior to its value bein~ determined. Once the process is commenced and title is obtained, the City would be obligated to complete the process even if the price of the propei~ty was hi~herthan anticipated. The Council reviewed the various cost considerations includin~ the cost of appraisals, boundary survey, title commitments, environmental work, and legal fees. Fahey suggested that title commitments were not necessary until the City has a signed development agreement. The Administrator felt that the City should ask Cinemark to put down a deposit toward some of 16