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City Council Regular Meeting Minutes May 13, 2003 Page 8 1 down. He stated the fee for this project greatly outweighs the expense of not having quality 2 facilities. 3 4 Stan Nelson, 3504 Maplewood Drive, stated he has been a resident for over 40 years. Mr. 5 Nelson noted he toured the fire station and public works facility in February. He noted at the 6 open houses, he questioned the increase of space and as to who set those amounts. Mr. Nelson 7 noted there was no response from Mr. Hartmann at that time. He stated the fire station should not 8 require more than a 40% increase in space. Mr. Nelson indicated his tax increase would be 9 roughly.$200 a year but noted there would also be other tax implications on the residents from 10 the school district, property taxes, real estate taxes, state taxes, etc. due to changes the legislature 11 is making. He indicated the tax implications were not just $200 a year due to the great changes 12 that would be upcoming in State and City government. 13 14 Mayor Hodson thanked the residents for their comments. 15 16 C. Update on Stonehoue Properly by Stacie Kvilvang, Ehlers & Associates, and 17 Authorization to Enter into a Pre-redevelopment Agreement with Amcon Construction. 18 Stacie Kvilvang, Ehlers &Associates, stepped forward to address the Council. Ms. Kvilvang 19 gave a presentation on the Stonehouse property and how the Council acquired that site. She 20 noted this site has a great potential for redevelopment within the Northwest Quadrant. Ms. 21 Kvilvang reviewed a timeline for this property and events that have taken place in the recent 22 future.: 23 24 Ms. Kvilvang noted C-70 has approached the City to purchase this property and redevelop it. 25 She noted Ehlers initiated discussions with potential developers in late 2002 with Amcon 26 presenting redevelopment options to the Council in December of 2002. Ms. Kvilvang indicated 27 if the City were to redevelop the site they would need to invest over$700,000 for parking and 28 infrastructure. She noted this would be a band-aid and would require additional funding in the 29 future. Ms. Kvilvang stated it may not be in the City's best interest to continue with this as the 30 bar needs to be set high with this property as it is at a main intersection within the community. 31 32 Ms. Kvilvang indicated it would be great to get the property back on the tax rolls creating 33 roughly$16,000-25,000 per year. She noted the City is not in the restaurant business and does 34 not know a great deal about it, where it could be better dealt with in the private sector. Ms. 35 Kvilvang stated the profitability would continue to go down as the expenses for the City would 36 continue to increase through insurance, maintenance, etc. 37 38 Ms. Kvilvang stated rehabilitation of the site is not conducive for the current needs out of the 39 site. She indicated the needs of retail tenants are different than those for the restaurant. She noted 40 more would be spent on rehab than if a developer were to start over. Ms. Kvilvang noted the site 41 needs to be updated to meet the needs of current retail delivery standards and refuse removal. 42 43 Ms. Kvilvang indicated profitability is going to be a main concern with this site. She noted there 44 needs to be a clear message in the redevelopment of this site to provide a public liquor store, a 45 restaurant with pull tabs, outdoor eating, a great design for the community. She noted the 46 Amcon proposal has two buildings, one being the restaurant with another building housing the