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Hugo City Council Meeting Minutes for November 4, 2019 <br />Page 3 of 5 <br />The Finance Director has updated the pro -forma for the 2020 fiscal year and the service rates <br />needed to fund operations. Adoption of the Consent Agenda approved RESOLUTION 2019-47 <br />ADOPTING A PRO FORMA FINANCIAL GUIDE FOR WATER AND SANITARY SEWER <br />OPERATIONS FOR THE 2020 FISCAL YEAR AND ESTABLISHING SERVICE RATES. <br />Approve Option/Purchase Agreement for City Owned Property <br />Community Development Director Rachel Juba presented to Council the Option/Purchase <br />Agreement for the City owned property along Highway 61 and Egg Lake. She explained Tony <br />and Michele Harmening would like to develop it and own a steakhouse restaurant called "The <br />Cattlehouse". At its Tuesday, October 15, 2019, meeting, the EDA was presented with a concept <br />plan and agreed it generally met the development criteria the City has for the property. The EDA <br />directed staff to negotiate a purchase agreement with the Harmenings for City Council approval. <br />Juba reviewed the concept plan with the Council explaining there would be a restaurant and <br />future event center. Docks and public amenities are planned along Egg Lake as well as other <br />outside recreational opportunities. The second phase would be commercial opportunities. She <br />explained that staff had been meeting with the development team reviewing the development <br />criteria and are continuing to have discussions with the architect on the design guidelines. The <br />City's financial adviser, Baker Tilly, is reviewing the applicant's financials. Juba stated the <br />EDA thought the concept was a good match to have the property sold for one dollar, and staff <br />would like to take the property off the market with a purchase agreement. She reviewed the <br />purchase agreement terms that included a requirement to go through the approval process by <br />April 30, 2020, and a clause stating that if the project was not built, the City would regain <br />ownership of the property. <br />Tony Harmening addressed the Council stating he has been working hard on a family restaurant. <br />He has been on the road the past ten years in the restaurant business and would like to bring it <br />home to Hugo. <br />Council talked about the proposed public amenities and expansion plan. They agreed it was a <br />great addition to the City, brought attention to the downtown area, and they appreciated him <br />wanting to invest in his home town. <br />Weidt made motion, Klein seconded to approve the option/purchase agreement subject to the <br />City Attorney review and approval. <br />All Ayes. Motion carried. <br />Proposed Property Donation - Rich Kettler <br />Community Development Assistant Emily Weber presented to Council on the proposed donation <br />of land by Rich Kettler. Weber explained Kettler proposed to donate two lots located north of <br />140th Street North and west of Fenway Boulevard North. The two lots equal approximately six <br />acres and are outlots of the Fenway Place Development done by Kettler in 2002. The lots were <br />potential future phases but the developer would need to construct 140th Street. There area <br />significant amount of wetlands on one outlot, and the other outlot contains a lift station. Emily <br />reviewed the property taxes on the outlots explaining if the properties are acquired, the City <br />