Minutes - Council - 07/14/2009 - Laserfiche WebLink

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Motion by Councilmember Look, seconded by Councilmember Wise, to Adopt Resolution # 09- 146, granting a one-year extension to D.R. Horton, Inc. to submit the final plat application for the Gables Terrace subdivision. Motion carried. Voting Yes: Mayor Ramsey, Councilmembers Look, Wise, Dehen, Elvig, Jeffrey, and McGlone. Voting No: None. Case #6: Consider Adoption of Resolution Approving the Terms of $1,140,000 Internal Loan in Connection with TIF District No.4 Public Works Director Olson reviewed the staff report. Councilmember Look stated that he is concerned because he has been outspoken about this Joint Powers Agreement (JPA) in the past. He stated that this development has not gone according to plan and yet the JP A lives on and on. He stated that in 2004, the land acquisition was estimated at $500,000 and this has now jumped up to $1.14 million. Public Works Director Olson stated that per the JPA, costs were all anticipated and were good faith estimates as to what would be incurred as part of the project. He stated that the JP A allowed the City to get $4 million as a contribution to the development from the County that they normally would not help fund. He stated that he spoke with the County this afternoon and this will not be right of way, but full fee title for this property and also will not be done as a condemnation. Councilmember Elvig stated that he agrees with Councilmember Look's frustration that this agreement seems to go on and on. He stated that he would like to see some County dollars come back to the City and expressed concern about the loopholes in the contract. Public Works Director Olson stated that the City has a say in the design for alignment and how large the road is and, to some extent, cost. He noted that the cost for right of way along Ramsey Boulevard was estimated at $500,000, but it ended up not costing anything. Councilmember Wise stated that in his opinion, the hard channelization has caused some businesses to go out of business or relocate which is where he has a big problem with the JPA. Councilmember Look stated that his areas of frustration are value and compared the cost of acquiring the R TC property to this Oasis property. He stated that his primary concern is timing and asked if the spending will ever stop before this project gets any "legs" under it and the City gets paid back. He stated that he doesn't see any "legs". He stated that this did not go through the Finance Committee and he doesn't think the City approved the County engaging in negotiations at this level. He stated that, in his opinion, the Council was completely left in the dark on this issue. He stated that he believes there is some kind of fundamental flaw here, and is convinced that if this had gone through the proper channels, the City would not have purchased this property today. City Council! July 14,2009 Page 11 of 19