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Housing and Redevelopment Authority Meeting Minutes November 30, 1999 Page 4 • 1 Cavanaugh asked if there was proof that the $12.00 per square foot was a reasonable figure. In 2 other words, could a paper trail be provided for the H.R.A. to review. Mr. Krier stated that the 3 property could be appraised, but that process would take approximately six weeks. 4 Mr. Krier clarified Item No. 3 on the revised draft by stating that the purchase of 8,500 square 5 feet from the Shopping Center owners (Republic Investment) x $12.00 per square foot is the 6 dollar figure for the purchase of the easement. From that figure, 90% would be utilized by 7 Republic Investment for redevelopment of the village green area. 8 Cavanaugh inquired about the cost of maintenance of the village green area. Mr. Krier clarified 9 that the City would be responsible for maintaining the area. 10 Mr. Soth questioned Item No. 6 on the revised draft, which stated that the City would attempt to 11 obtain an easement from the adjacent apartments and The Hitching Post to extend the village 12 green to Kenzie Terrace. Mr. Soth wished to clarify for the H.R.A. that it is unlikely that 13 Housing and Urban Development(HUD) would approve the sale. 14 Cavanaugh clarified that if the City decided not to proceed with this project, then the TIF funds 15 from the Kenzie District would be used to pay down bonds, and the project would have to con- ' 16 tinue with utilizing the TIF funds from Chandler. 17 Faust reiterated his concern about the bottom line number regarding the total purchase price of 18 the Shopping Center easement.. 19 Mr. Krier stated that the bottom line is that the City is attempting to utilize an opportunity to ac- 20 quire the land, and if it is determined that the project is not viable, then the City would receive 21 back 90% of the investment. 22 Faust stated that he would appreciate receiving a bottom line figure that the easement would cost. 23 Mr. Krier stated that the cost would be approximately$135,000, because there would be addi- 24 tional costs of putting together the project. 25 The second cost, Mr. Krier stated, would be the improvements on the land, which have been es- 26 timated at approximately $1,200,000. Mr. Krier felt that the figure of$1.2 million was excessive 27 and that the project could be completed satisfactorily for approximately $700,000 to $800,000. 28 Morrison offered insight by stating that the City has the option to keep the momentum going on 29 the project, and use some of the TIF funds from the Kenzie District, and then in January or 30 February use some of the funds in the Chandler TIF account for improvements. Or,the other op- 31 tion, Momson stated, is to slow the project down, lose the opportunity to utilize funds from the • 32 Kenzie TIF account, and return to the project in the Year 2000 and arrange financing.