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<br />City Council Study Session - 11/21/05 <br />Minutes - Page 5 <br /> <br />property owners to make a contingent offer, holding funds back <br />in case there were environmental issues to resolve to protect he <br />redeveloper; and if the property were clean, the property owner <br />should have no concern in having those funds held while the <br />property's environmental status was determined. Mr. Krass <br />advised that the developer was eager to pursue this option. Mr. <br />Krass reviewed the four properties remaining that are not under <br />contract or in process of arrangements being made for <br />acquisition. <br /> <br />Mr. Krass advised that they would not be asking the City Council <br />for Eminent Domain authority until that process was completed <br />and the property has time to consider the latest offers, and <br />negotiations proceed. Mr. Krass noted the draft resolution <br />prepared in anticipation of the November 28, 2005 Council <br />meeting; noting that the resolution would be held until one of the <br />December meetings to allow the process to continue between the <br />developer and property owners. Mr. Krass advised that the <br />proposed resolution would remain similar unless substantial <br />negotiations were held in the interim. <br /> <br />Mr. Krass reviewed, via map, the specific status of each of the <br />remaining parcels, with six not yet under contract; and four not <br />close to an agreement. Mr. Krass noted those four parcels <br />included those identified as Old Dominion, Hagen, United <br />Properties (vacant land); and Northco. <br /> <br />Discussion included agreements between property (fee) owners <br />and redeveloper; impacts to long-term leases of tenants and <br />relocation benefits; Internal Revenue Service (IRS) requirements <br />regarding reinvestment of proceeds from condemnation up to <br />three years and protection of property owners; public purpose <br />definition for "takings;" chain of title protection for the City; <br />"hold harmless" clauses from the developer to protect the City; <br />and the City's standard to define and meet findings. <br /> <br />Councilmember Ihlan expressed concern the Council still had not <br />developed a policy as recommended by her several months ago; <br />and questioned why the Council was being asked to consider <br />Eminent Domain now when there was pending litigation that <br />may derail the project entirely. Councilmember Ihlan expressed <br />