Minutes - Council - 01/27/2009 - Laserfiche WebLink

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