09-08-10 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL SEPTEMBEK 8, 2010 PUD PERMIT- Blesener opened the continued Public Hearing to consider application for 2948 RICE a PUD Permit to allow a technology service contractor to locate on STREET- property at 2948 Rice Street requested by PreWirc Specialists, Inc. PREWIRE SPECIALISTS The City Administrator reported that staff has met with representatives of PreWirc Specialists to discuss the City's redevelopment efforts in the Rice Street area that includes the property PreWirc is interested in purchasing. PreWirc has indicated they would be willing to cooperate with the City in a future redevelopment. They indicated that they did not see themselves as being the developer of a new building given the cost and the current economy. The Administrator reported that a framework for a development agreement was discussed at the meeting with PreWirc which would give the City the ability to acquire the PreWirc property and redevelop it. The Administrator reported that he has done some preliminary financial analysis of the potential to redevelop the area from a tax increment financing (TIF) standpoint. The Administrator reported that TIF alone would not be sufficient to enable redevelopment. Other funding sources such as a Livable Communities Grant program would be needed to offset the high acquisition costs. The Administrator pointed out that the County has high market values on properties in this area, which also reduce the TIP' potential of a project. The impact to the City's fiscal disparities as a result of redevelopment would also have to be factored in. The City Administrator then reviewed a draft development agreement addressing the redevelopment issue. With regard to PreWire's cooperation in a redevelopment effort, the City Administrator reported that they would be willing to sell the City the property at a price that is the greater of the cost of what they paid for the property plus improvements and a price determined by an appraisal. The Administrator noted that PreWirc would be eligible for relocation benefits. Relocation would also be subject to a six month notice. The Administrator reported that the proposed development agreement would hold future owners of the property to the same terms, and PreWirc has asked that that clause be removed from the agreement. The Administrator felt that was not a problem, noting that the development agreement essentially givens the City fist right of refusal on the property. Another proposed change in the agreement is to change PreWirc to PWS Holdings LLC. The Administrator reported that the City Attorney has reviewed the proposed development agreement and f nds it to be acceptable. With regard to the issue of drainage, the City Engineer has now reviewed storm water calculations, and find the proposal acceptable subject to compliance with his recommendations. There was an issue relative to the 2