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Regular City Council Meeting Monday,January 12, 2015 Page 11 Nays: None. Mayor Roe thanked Mr. Goldblatt for his attendance and comments; but con- firmed that the motion denied his request for exemption for this facility from the inspection process under the City's Rental Licensing Program. Mr. Goldblatt expressed his disappointment in the City Council's action; noting that most other multi-tenant buildings were not regulated with rents they can charge; however, owners of this building would be forced to absorb this cost ra- ther than being able to spread the fee over the units. 15. Business Items—Presentations/Discussions a. Update on Dale Street Fire Station Redevelopment City Manager Trudgeon provided a verbal update on the status of the Dale Street Fire Station Redevelopment Project, and took responsibility for and personally apologized for not communicating the project status with the City Council and public before now, including the provisions staff was working under in the Prede- velopment Agreement. Mr. Trudgeon stated that one reason for the delayed re- porting was that staff kept thinking the end was in sight, but obviously that had not happened and the process went on far too long. Mr. Trudgeon reviewed the history and background of the project; and the recent expiration of the Preliminary Developer Agreement, with financing for the project remaining the final piece of the puzzle, but also still unresolved. At this point, Mr. Trudgeon advised that the Greater Minnesota Housing Corporation (GMHC) was still attempting to secure financing, and was awaiting completion of an ap- praisal with the latest bank considering financing the project. Mr. Trudgeon advised that staff was collectively of the opinion that it was time to pursue other options for the land. Mr. Trudgeon stated that the next steps from staff's perspective were for the City— and Housing & Redevelopment Authority (HRA) as owner of two of the three acres and the City's partner—discuss options for the property. Mr. Trudgeon clarified that the project was and would remain a city-led process. Mr. Trudgeon advised that the HRA next met on January 20, 2015, at which time they would be discussing the project's status, along with options and alternatives. Subsequently, Mr. Trudgeon noted that the City Council and HRA's next joint meeting was scheduled for February 9, 2015, where a larger discussion and HRA recommendations were proposed for discussion, and the next steps. Given the amount of time given by the community to-date in considering and agreeing on the right development, Mr. Trudgeon stated that he would lean to-