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City Council Regular Meeting Minutes 08 <br /> September 9, 2003 <br /> Page 7 <br /> 1 be understood; however, he felt that could be handled. He added he saw many good things <br /> 2 coming with this development and he appreciated the work the two sides had accomplished. <br /> 3 <br /> 4 Councilmember Thuesen stated it would be wonderful to see a face lift of the Cub building. ,He <br /> 5 asked if there was concern regarding Cub running out of debt in the future, as they had <br /> 6 maximized their debt load. He questioned if this could be kept a positive business asset with <br /> 7 money available to handle future projects such as repaving the parking lot, for example. Ms. <br /> 8 Kvilvang responded the team was confident Cub would keep a quality project based on their <br /> 9 finances. <br /> 10 <br /> 11 Councilmember Horst noted there had been discussion concerning a co-op component. Ms. <br /> 12 Kvilvang replied there had been conversation regarding rehabilitation in the early discussions. <br /> 13 She stated those options would be considered if there was additional increment available. She <br /> 14 added it was not currently included. <br /> 15 <br /> 16 Councilmember Horst noted Robert Muir would own the "business main street". He asked if it <br /> 17 would be leased as rental and not for sale. It was stated that was correct and the only exception <br /> 18 was the municipal liquor store. <br /> 19 <br /> 20 Councilmember Horst asked about the two-part assessment. Ms. Kvilvang responded a$1.2 <br /> 21 million assessment would be applied to Big Box and the remaining $500,000 to the smaller <br /> 22 commercials over a period of time. Councilmember Horst asked if the assessments would be <br /> 23 incorporated into the lease structure. It was noted that was correct. <br /> 24 <br /> 25 Mayor Hodson thanked Ms. Kvilvang and the development team for an outstanding job. He <br /> 26 stated he was excited the City was getting close to having the TERM sheet come together and <br /> 27 changes being made with"buildings coming down and going up." He added the residents <br /> 28 wanted to see this project go forward. <br /> 29 <br /> 30 John Herman, Faegre and Benson, stated he represented the Pratt-Ordway Group, along with the <br /> 31 Pratt and Hunt Groups, for the for-sale units. He noted the development team would be pleased <br /> 32 to come back between the current meeting and the September 23, 2003, meeting with all of the <br /> 33 details. He indicated Ms. Kvilvang had done a good job laying out the general parameters of the <br /> 34 Agreement. <br /> 35 <br /> 36 Mr. Herman explained some of the elements of the terms would have certain parts of the project <br /> 37 done by the private developer and not by tax increment because of the structure of tax increment <br /> 38 statutes. He discussed applications of these elements. <br /> 39 <br /> 40 Mr. Herman also gave information regarding the advantages of acquiring the Fannie Mae loan. <br /> 41 He noted the advantages to the project from a marketing point of view. He also reviewed the <br /> 42 risks versus the benefits to the City of following the proposed plan. <br /> 43 <br /> 44 Mr. Herman felt,when all the elements were added together, the amount of risk to the City was <br /> 45 pretty small. He added the City also had the real estate that would be sold to the developer for <br /> 46 $1.25 million. He noted there were many economic factors that, on balance, gave the City a <br />