04-26-1999 EDA - Laserfiche WebLink

Home Browse Search

5. EDA BUSINESS A. Consideration of Resolution No. 99-EDA-112 Resolution Approving Modifications to Development Assistance Agreement with Michael Investments Concerning the Building N Project City Attorney Long reviewed that there was a closed session to discuss the threatened litigation over the Development Agreement negotiations. He advised that the negotiations have proceeded but he has not yet given a formal presentation to the Board. City Attorney Long explained that if the EDA would like a full presentation and explanation of the outcome of those negotiations, it would be appropriate to hold an executive session of the Board. Or, he could provide an abbreviated presentation at the public meeting. Unanimous consent was reached to adjourn to a closed session. President Coughlin recessed the EDA meeting to a closed session to discuss the potential litigation at 9:17 P.M. The meeting was reconvened at 9:45 P.M. Economic Development Coordinator Carroll explained the EDA and staff have talked with Everest Development about completion of the site and Building N and, over the course of several weeks, discussion has intensified. He advised of the proposed final changes to the Development Assistance Agreement, noting that Section 1.1 refers exclusively to a 69,582 square foot office/flex/service facility. Economic Development Coordinator Carroll explained that it had been the view of EDA members and others that those options created the possibility of a speculative building and they desired more assurance on what would be built so Everest agreed to delete reference of a warehouse facility. He explained the advantage to the City is that even though the building is smaller it is considered to be a higher quality structure, comparable to the Liberty Check building, with more brick and masonry, and predominantly office space. Economic Development Coordinator Carroll explained another change was that the earlier draft111 specified a certain number of jobs (20 jobs at unspecified wage rates). He explained that in view of the assistance to be provided,the EDA felt the developer should provide a greater number of jobs and specifics on wages to be paid. He advised the previous language has been replaced with a reference to 75 jobs with an average wage rate of at least$12 per hour. Economic Development Coordinator Carroll explained the provision on the interest provision was negotiated several years ago at 8%but there was concern with the EDA that,perhaps, it was higher than needed be so they negotiated a reduction to 7.25%which is reflected in the current draft. Economic Development Coordinator Carroll explained another provision has to do with plans prepared for this building. The Agreement now includes Exhibit F which will be copies of the specific building plans. He noted the advantage to the City and EDA is that rather than agreeing 2 U:\CARIS\COUNCIL\MINUTES\MVEDA26.APR