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<br />Councilmember Look stated the City is responsible for funding the RALF program and this is <br />prime real estate for any business wanting to come into the City. He stated it appears the City <br />has not-effectively marketed the property to find a suitable tenant. <br /> <br />Councilmember Elvig stated it will take a lot of improvements to bring this property up to City <br />Code and expressed concern that the City will spend a lot of staff time and money in trying to <br />market the property. He added if the property is tom down, the City cmmot capture tax dollars. <br /> <br />Mayor Ramsey asked if the City should pay a firm to market the property and recoup the dollars, <br />thus allowing the City to pay itself back. <br /> <br />City Attorney Goodrich stated he would have to make sure there is no issue with the RALF <br />progranl. <br /> <br />Economic Development Coordinator Sullivan stated with RALF funding, the City is entitled to <br />recoup 10% administrative costs, whether staff time or other things. He felt that if the City were <br />to continue to own and operate this facility and lease the property to someone, the City would be <br />walking a fine line in terms of competing with the private ,sector, i.e., offering a below market <br />product when there are a lot of other properties available in other areas ofthe City. <br /> <br />Councilmember Dehen stated if the City finds a tenant to come into the building, either the <br />tenant makes improvements and is given a break on its rent or the City makes the improvements <br />and charges market rate rent; he stated either option was not appealing to him. <br /> <br />Councilmember Elvig stated one of the missions of the EDA is to clean up the substandard <br />buildings in the City. He stated it appears the City is willing to give someone an incentive to use <br />a building that is less than standard and that seems counter-productive. <br /> <br />Mayor Ranlsey stated he felt the Council should give further consideration to this matter before <br />tearing down the building. <br /> <br />Councilmember Dehen suggested marketing the property for six months and if it does not get <br />rented, the building should be tom down. <br /> <br />Councilmember Elvig concurred and added the City Council may want to consider discussing at <br />a work session the City's overall policy regarding these types ofissues. <br /> <br />Motion by Councilmember Dehen, seconded by Councilmember Jeffrey, to direct staff to <br />explore opportunities to market the property for six months and if no renter is found at market <br />rates at the end of the six-month period, then the City will demolish the building using RALF <br />funds. <br /> <br />Further Discussion: . Councilmember Jeffrey asked if the Council desires to give staff the <br />latitude to demolish the building after six months or whether the matter should come back to the <br />City Council after six months. Councilmember Dehen stated it was his intent that staff would <br />proceed with demolition without the need to come back to the City Council. Councilmember <br /> <br />City Council! January 27, 2009 <br />Page 7 of 20 <br /> <br />P17 <br />