HRA MINUTES 03111997 - Laserfiche WebLink

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23 Liquor Operations Manager Larson asked if this pertained to ATMs. 24 Soth stated he was not certain about ATMs but did feel that this restriction 25 needed to be removed. Soth also noted that the City would have 30 days to 26 back out of the purchase agreement after the date of closing. 27 Morrison recommended that the environmental report be pursued and also that 28 KKE Architects be retained to perform a Purchase Inspection Report for the 29 Tire Plus building at a cost of $750.00. 30 Housing and Redevelopment Authority Meeting Minutes 31 March 11, 1997 32 • Page 3 and bond or borrow $650,000 to fund this project. The projected profits of the 1 2. There are environmental reports which include this property but there 2 36 are none that are specific to this property. Soth suggested an 3 stated he was concerned that if another opportunity like the Village Commons environmental consultant be asked to update the report and address it to 4 the City so that the City will have the protection of that report. 5 3. St. Marie Co. and Super Valu have provisions which allow them to 6 approve the construction on the site. The original site plan has been 7 approved. If the City were to change the site plan, it would require 8 additional approval by these two entities. 9 4. The City may need to provide a staging area for construction. 10 5. The City needs to make it clear that as owners of this property, they do I 1 not want to be part to a significant degree of the common area of the 12 shopping center. The Tires Plus building is separate and free standing 13 and the owner should not have to pay for costs of the mall or parking 14 area accesses which are remote to this location. 15 6. There are restrictive covenants which prohibit types of uses on the 16 property. This states that the owner of the property will not use the 17 property for any use that a tenant of the shopping center has the 18 exclusive use. This restriction cannot be agreed to. What can be agreed 19 to is that the property will not be used for any current tenant use. Mr. 20 Soth stated Midwest Federal has a restriction that states that no other financial institution will be able to do business on the shopping center property. 23 Liquor Operations Manager Larson asked if this pertained to ATMs. 24 Soth stated he was not certain about ATMs but did feel that this restriction 25 needed to be removed. Soth also noted that the City would have 30 days to 26 back out of the purchase agreement after the date of closing. 27 Morrison recommended that the environmental report be pursued and also that 28 KKE Architects be retained to perform a Purchase Inspection Report for the 29 Tire Plus building at a cost of $750.00. 30 Mayor Ranallo stated he would be voting against this Resolution. He stated he 31 did not feel it was in the best interest of the City to take $725,000 out of the 32 HRA Fund which was derived through tax increment financing (TIF) districts 33 and bond or borrow $650,000 to fund this project. The projected profits of the 34 liquor operation are only $60,000 per year. He stated TIF districts were set up 35 for redevelopment, not for the purchase of commercial property. He also did 36 not feel the City should be in the business of owning commercial property. He 37 stated he was concerned that if another opportunity like the Village Commons 38 would appear, the City would not have the funds to pursue it. He also noted that the City will be needing a new fire truck and the HRA funds could be used for that purpose by transferring that money to the General Fund.