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Hugo City Council Meeting Minutes for November 4,2019 <br /> Page 3 of 5 <br /> directed to update the financial guide and review service rates on an annual basis going forward. <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 /> 140'h 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 140'h Street. There are a <br /> significant amount of wetlands on one outlot, and the other outlot contains a lift station. Emily <br />