11-28-07 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL NOVEMBER 28, 2007 Blesener felt that at this point action should be tabled on this matter until a Development Agreement can be worked out. Wagner asked for bullet points outlining what needed to be addressed in the agreement. The City Administrator noted that the most obvious is the $1.5 million in exterior improvements. Wagner stated that they could not commit exactly to $1.5 million noting that the amount could be $1.4 million. Carl Johnson suggested a second bullet point would be that the sale of lease of 11,000 square feet would trigger the exterior improvements. The Administrator also noted that demonstration of the financial ability to make those exterior improvements would also be needed as well as a specific timeline for the improvements should the lease or sale not occur in a timely manner. Wagner asked what type of financial proof they would be required to submit. The Adminishator suggested that one option would be a letter from the bank. Wagner indicated that the bank will not give them a guarantee for a loan of $1.5 million at this point. Montour stated that some financial security is needed to ensure that the exterior improvements are made. He pointed out that the building has sat in a deteriorated condition for the past 4 or 5 years, and he did not want that situation to continue for the next 4 or 5 years. Montour stated that the Council has nothing this evening that will guarantee the upgrade of the building. Graba stated that they did not want to commit to a $100,000 cost to paint the redwood on the building, if that redwood will just be torn down. The City Administrator felt that an interim solution may be to just stain over the Knox name on the building. McGraw indicated that he feels the proposal is a very viable one and would bring in a business that the City would like to have. However, the City needs to know that the applicant can afford the building including the proposed improvements. McGraw felt that the applicant may be misunderstanding the City Administrator's recommendation. That recommendation includes doing deferred maintenance on the building until the exterior improvements can be made. That deferred maintenance includes items such as painting over the Knox name, pulling weeds, general clean up of the site. McGraw also pointed out that the City needs some assurance that the exterior improvement proposed will occur, and that is why financial security is needed. Wagner suggested that the City withhold occupancy permits if the exterior improvements do not occur. McGraw was concerned that this would result in future negotiation over the occupancy permits. Wagner stated that they would be willing to enter into a development agreement and meet 14