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Housing and Redevelopment Authority Meeting Minutes November 30, 1999 • Page 3 I Mayor Ranallo stated that Richard Krier, Midwest Planning & Design, LLC, was in attendance 2 and Mr. Krier was invited to address the H.R.A.. 3 Mr. Krier stated that the goal is to achieve the village green area in the Shopping Center with the 4 least risk to the City. He stated that a new Letter of Understanding has been proposed with the 5 Shopping Center owners (Republic Investment), wherein the City would buy a redevelopment 6 easement that would be paid for in 1999. Republic Investment would in tum secure their agree - 7 ment to provide 90% of the easement improvement costs with a Letter of Credit to the City for 8 that 90%. In short, Republic Investment would take 90% of the funds from the purchase of the 9 easement and develop the village green project. 10 In this respect, Mr. Krier directed the H.R.A.'s attention to a revised draft of a Letter of 11 Understanding dated November 30, 1999 between St. Anthony Housing and Redevelopment 12 Authority and Republic Investment Company regarding the St. Anthony Shopping Center. 13 Mr. Krier continued by stating that if this plan was adopted by the end of 1999, the easement and 14 Letter of Credit would be in place, and in early 2000, the detailed design of the project would be 15 implemented. This detail would include soils reports, utilities, and a thorough inspection, which would take out more of the risk of the project from the City's standpoint. Construction could be- gin in spring or early summer. 18 Ranallo expressed his approval with Item No. 14 on the revised draft, which included that 19 Republic Investment Company would return 90% of the easement purchase price should the City 20 decide not to proceed with the village green project as planned. 21 Faust stated that the City has had excellent TIF projects in the past, and he cautioned the H.R.A. 22 about keeping within the spirit and intent of the law regarding the utilization of TIF funds. 23 Faust was concerned about Item No. 3 on the revised draft wherein it stated the cost of the ease - 24 ment would be valued at $12.00 per square foot. He felt the price was excessive and questioned 25 if the City was meeting the intent of the law with regard to the price paid for the easement. 26 Mr. Soth stated that the City would be acquiring the full right to use and occupy the easement 27 area and the fact that the Shopping Center owners would retain the title ownership is not a 28 significant issue. The value of the easement, he stated, must be close to the value of the title of 29 the property. Although he refrained from.commenting on the $12.00 figure per square foot for 30 the easement, Mr. Soth felt the land could retain more value because of its frontage to County 31 Road 88. 32 Mr. Krier stated that he believed $12.00 per square foot to be a reasonable dollar figure and would be keeping within the spirit of the law.