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City Council Regular Meeting Minutes May 23, 2006 Page 10 1 Councilmember Stille asked what the title status will be on June 1. City Attorney Lindgren 2 indicated he has more questions than answers as he is unaware of the financing obligations on 3 this property. The amendment was created to be a recordable document. There is notice to all the 4 parties that this right exists and the City's rights predate other documents. It is hard to predict 5 what the courts would decide if the City took back the lot. Councilmember Stille feels it would 6 be harsh to take this lot back and would not recommend that. However, when the deal was cut 7 for $50,000, the City had turned down an offer for $150,000. At that time, the Council did not 8 have enough time to consider the first offer by the coffee shop. If they would have had more time 9 to think about it, they may have asked for $75,000. Councilmember Stille feels the developer 10 should have made every effort to make this building available sooner. He suggests a fee of 11 $25,000 should be negotiated with the developer and not take back the lot. 12 13 Councilmember Horst stated he knows it is difficult when dealing with independent government 14 agencies. He sees no need to "play hardball" on this project as this is really no fault of the parties 15 involved. He suggests the 30 day extension be given and welcome Mr. Peterson into the 16 community rather than to take advantage of a situation out of the control of the developer and 17 Mr. Peterson. He would like to see this move forward. 18 19 Councilmember Thuesen stated Councilmember Stille brought up good question of anticipation 20 of plumbing; however, he would like to see this move forward. He agrees the Council should 21 approve the 30 day extension and accept the offer of $100 per day to the Sports Boosters. He 22 does not feel this is the time to renegotiate additional fees as Mr. Peterson worked in good faith 23 to finish the project. He is not in favor of penalties. 24 25 Councilmember Gray expressed agreement with Councilmembers Horst and Thuesen. He 26 believes that Mr. Peterson would suffer more than the developer. The project is nearly complete 27 and it serves no purpose to not move forward. He recommends and is in favor of a 30 day 28 extension. 29 30 Councilmember Stille stated he is not trying to make this ugly or take advantage of the situation. 31 He is trying to make this equitable as he believes the City was shortchanged in the negotiations 32 last time. He is only trying to rectify the shortcomings through his comments and 33 recommendations. 34 35 Mayor Faust indicated he is not interested in taking the building. He is interested in the process. 36 This is the third change to the agreement. If the Council is willing to approve this request, he 37 would like to see something that says they will not come back for a fourth time or severe 38 penalties will be imposed. 39 40 Councilmember Horst stated everyone would obviously be disappointed if it goes past the 30 41 days. He is comfortable when Mr. Peterson's attorney says this will be open in June. Should this 42 not happen, some serious penalties should be imposed. 43 44 Motion by Councilmember Horst to approve the Request from Developer to extend the Deadline 45 for the Development Agreement. 46 47 Motion died for lack of a second.