06-23-2025 Workshop Minutes - Laserfiche WebLink

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WORKSHOP MINUTES CITY COUNCIL JUNE 239 2025 hearing. She noted that the application for the next round of grant funding is due June 30 which is why there is a hurry right now to decide on the funding sources. Kwapick asked why conduit financing was not initially discussed. Steve Minn with Lupe Development explained that they were unaware of the Council's sensitivity to TIF and that they did not project their costs accurately since the market has now changed. He stated that they worked to restructure their proforma in order to start the project in 2025 to save costs. Kwapick clarified that they would need the conduit financing no matter how much TIF is requested. Malone asked if there would be a property manager on -site at the building. Mr. Minn confirmed that they do have on -site property management at their buildings. Ms. Huot noted that requiring an on -site property manager is something that could be included in a development agreement. There was Council consensus to support the conduit debt financing request and will call for a special City Council meeting on Friday, June 27, 2025, at 4:00 pm to pass a resolution. Fischer stated that he would not see a financial benefit from this project to the city in his lifetime. Mr. Minn explained that this project will not put additional pressure on the schools. or parks, but admitted there would be additional medical and fire department calls for service. He reviewed his larger portfolio of multi -housing and how their buildings are managed. Fischer reviewed the TIF proposal from the last Workshop and stated that he is not supportive of their $1 million request for 26 years, Mr. Minn stated that he is open to negotiating the TIF terms but he needs the ability for enough cash flow to make the mortgage payment. He clarified that they would only need up to $800,000 now. Ms. Huot clarified that the city is supportive of $200,000 in TIF, and they could be open to more. Fischer stated that $800,000 in TIF is a big number for him to support. Miller stated that Dupe Development should see what additional funding they get, and then the Council could consider more. Mr. Minn explained that they do not have much time since the clock will start ticking for when they have to begin construction. Ms. Huot reviewed the process for creating a TIF district. The Community Development Director clarified that a resolution could first be approved for the $200,000 and then come back and amend it later after the grant funding amount is known. There was Council consensus to support the initial offer of $200,000 and then review after the grant funding is determined.. There being no further business, the meeting was adj ourned at 7:29 p.m. Thomas Fischer, Mayor Attest: Aeidi Heller, City Clerk Oil