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City Council Regular Meeting Minutes June 24, 2003 Page 5 originally envisioned by the City Council and Task Force. In addition, the existing water quality issues could be adequately addressed. 3 4 It was noted that application would be submitted to The Metropolitan Council on June 30, 2003, 5 and funds would be awarded in November. 6 7 Mr. Morrison stated that the City had applied for a grant last year, and the grant had been denied. 8 He said that this year representatives from the City had met with Metropolitan Council staff 9 several times and, as a result, were asking for the grant of$850,000 to help put a park system 10 into Apache Plaza. Mr. Mornson added that he had just been advised that the City had been 11 awarded an environmental grant in the amount of$585,000 that would be designated for asbestos 12 abatement at Apache Plaza. The Council applauded Ms. Kvilvang's efforts in applying for and 13 receiving the environmental grant on behalf of the City. 14 15 Motion by Councilmember Faust to adopt Resolution 03-044, authorizing application for a 16 development grant through the Livable Communities Demonstration Program. 17 18 Motion carried unanimously. 19 20 E. Consider Resolution 03-047, re: Approve redevelopment option for Stonehouse/SAV 1 21 and Fire Station site. 22 Stacie Kvilvang, Ehlers and Associates, came forward to address the Council. She noted that on December 12, 2002, Amcon Construction submitted a proposal to the City to redevelop the 16 Stonehouse/SAV 1 and Fire Station site. Amcon submitted four redevelopment options for the 25 Redevelopment Site to the City for review and consideration. After review of the options, it was 26 recommended that the City Council approve the development option that consisted of the City 27 retaining ownership of a portion of the land, owning its own Municipal Liquor Store and selling 28 the remaining land to the Developer for development of a restaurant pad and additional retail 29 space. Ms. Kvilvang explained how this option brought the most revenue into the City's general 30 fund. She also listed the future steps that would be required to complete the project. She added 31 that on July 22, 2003, the Council would decide how the financing would be accomplished. 32 33 Councilmember Faust asked if the final numbers would be available in the final Development 34 Agreement. Ms. Kvilvang responded that they would. Councilmember Faust asked who would 35 "eat the cost" if unexpected expenses were uncovered. Ms. Kvilvang stated that the numbers in 36 the final Development Agreement would include any unexpected expenses, as those numbers 37 would be known by that time. 38 39 Councilmember Thuesen asked City Manager Morrison if he was comfortable with the potential 40 options available in a situation where the land sale receipts were not adequate to finance the 41 liquor store. Mr. Morrison responded that option #1, financing the remaining balance from 42 internal City funds, would probably be recommended. Councilmember Thuesen stated that it 43 appeared a large portion would be financed through the sale. 44 Councilmember Horst asked if Amcon agreed with the option the City has chosen. Ms. 16 Kvilvang stated that they did. 47