02-12-08 - Laserfiche WebLink

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MINUTES AIZEN HILLS • Traverse Business Center is still waiting on a committed tenant. Mayor Harpstead anticipates that the developer may request ramp support and road improvements. This is a running TIF district; we have needs for this funding. This district is a pre-1990 district which means the funds can be used outside the district. TCAAP—the GSA negotiations moved forward in January. In the purchase document there is an escape clause for the developer and the City stating that we can rescind our purchase agreement and get our earnest money back. We have been moving the rescinding date back to give us more protection. Also, buried in the agreement is a credit category mechanism. The GSA has indicated that the land has been discounted from $80 million but has not provided any proof when we requested it. We purchased it for$45 million and the $35 million discount was a function of the demolition and the preparation for development. A confidentiality agreement has been signed between GSA and developer; the City is being left out of this agreement to keep all information confidential. If the City is involved all information must be public information. There are 12 categories within this agreement. One category includes the movement of the water purification system. Another category is the clean up cost of the land, which contains high levels of metal. This clean up will get the land up to standards for residential homes. They agreed on all 12 categories and now have to negotiating dollar amounts for each category. The agreement states that the development cannot start until all the negotiations are done. Density of the project: There is plenty of space for the IIresidential demand and the commercial density should be near the original estimates. We still have property access issues; this issue can jeopardized the whole deal. The City is still searching for a new City Administration. PTRC is working on two trails along County Road E and Old Snelling. This has not gone through as the funding for the parks and trails is not adequate funding for this project. They are looking towards a bonding referendum. Lastly, the B2 district which is south of the railroad tracks and north of County Road E from Snelling to Lexington, a moratorium on all building jeopardized the sale of the old Holiday Inn. We don't want an empty building that does not pay taxes. The small group plan is going through a RFP that will probably come back with recommendations as to what to do with this whole area to upgrade it from a commercial status. The next potential area is the Red Fox/Gray Fox area. It would be to the Cities advantage to have a plan of what we want to see developed in that area as we do not want something developed that we cannot control. •