Minutes - Economic Development Authority - 03/19/2009

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Community Development Director Miller questioned where the funds would come from for the conference. Economic Development Coordinator Sullivan advised that the cost for he and Mr. Mulroney would come from the EDA budget, and did not know where the funds would come from for the Councilmembers. Community Development Director Miller was concerned that Mike Mulroney would be paid an hourly rate in addition to the conference. Councilmember McGlone thought that the discovery portion of the project should be focused on, as they do not know what the future will bring. He thought that it would be better for the City to be proactive. Member Steffen questioned how much money was in the utilities fund, could funds be borrowed, how long could the land be held, is the purchase price adequate, and is the City willing to sell the land at purchase price to one developer. City Administrator Ulrich advised that it would be a Council decision on whether the land could be sold at purchase price. He advised that there was about 9.5 million in the utility fund, and could be borrowed to pay for the land purchase. He explained that the funds would be paid back to that fund over a ten or 15 year period with interest. He advised that the City would act as their own bank in that regard. He thought that a water tower project could be pushed back a year to allow for some of the funds to be replenished. He advised that the payback terms would be flexible and the projects scheduled could be pushed back at this time. Councilmember McGlone did not think that selling the land at purchase price would be an option, as assessments would need to be covered. He advised that this would not be a giveaway project. Community Development Director Miller advised that across from Coborn's there is a considerable amount of dirt and storm sewer would need to be brought in to make that ready for development. Member Steffen confirmed that the pumpkin patch land was purchased with the fund as well. I Member Elvig commented that the water tower is dependent on the growth of Town Center. He explained that when the Town Center is developed, the funds would be paid back, and the water tower would then be constructed. He advised that there is constant transference of funds between City accounts to cover certain things. Mayor Ramsey thought that the next two or three months would be spent figuring out these items, such as sale price for parcels. He wanted to make sure that the City could make enough on the project to possible construct a community center, or something of that nature. Joint Economic Development Authority/City Council / March 19, 2009 Page 9 of 11