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<br /> MINUTrS <br /> <br /> CITY COUNCIL <br /> <br /> MAY 26, 201.0 <br /> The City Administrator pointed out that the property is in a Tax lnerement <br /> Financing District. He noted that there is a contamination issue on the former <br /> Oasis site which will have to be dealt with as the property is developed. The <br /> Adminish~ator noted that the City could use TIF funds to write down the land <br /> costs to the developer's target by reimbursing the City with TIF funds for the <br /> higher value of the site. <br /> The Council asked the type of tenants that the Abdo's have identified. Paul <br /> Abdo reported that they are high profile food and service franchises. <br /> Montour indicated that he did not want more multi-tenant buildings with empty <br /> store fronts, noting the vacancies along Rice Street. Paul Abdo indicated that <br /> their potential tenants are strong and they want this location. <br /> Paul Abdo reported that they are not tied to any particular design of the building <br /> and would work with the City to meet its design preferences. <br /> Keis asked for an estimate of property taxes and the City would realize if the <br /> property were developed. The City Administrator reported that he has not run <br /> these numbers. The Administrator noted that part of the equation will be what <br /> the County values the property at, and he has discussed this with the County <br /> Assessor. The property is a key site and the Administrator noted that the bridge <br /> and road project will make a drastic improvement to the appearance of the area. <br /> The fact that there is no direct access off of Rice Street is somewhat of a <br /> problem. Again, the Administrator suggested the potential to use TIF, but noted <br /> the use of TIF diverts money from the School District and the County. <br /> The Abdo's talked about issues with the site, noting that having a McDonald's <br /> adjacent can be a pro or a con depending on the particular tenant. Another issue <br /> is that there is no direct access to Rice Street, however, the Highway 36 <br /> exposure somewhat negates that issue. The exclusion of a burger restaurant on <br /> this site is a huge issue. Paul Abdo indicated that market rents are currently in <br /> the $12 to $14 per square foot at this time, and the tenants they have identified <br /> are willing to pay in the low $20 for this site. <br /> The Council discussed whether the Abdo development concept for this site is <br /> acceptable. Keis pointed out that future market conditions are unknown. The <br /> Administrator indicated that the best possible use of the site would be a bank, <br /> however, pointed out that the site is only 40,000 square feet in size, thus there <br /> are parking limitations. <br /> The Council discussed the R. J. Marco development of the adjacent site, and the <br /> Administrator indicated that they will be coming in soon with a proposal to <br /> build astand-alone Subway. <br /> 2 <br /> <br />