Agenda - Council - 09/09/1996 - Laserfiche WebLink

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Councilmember Zimmerman suggested that the other requests for temporary buildings had existing business buildings on the property and he feels this is different. He suggested that Mr. Johnson should bring in photos of what the temporary structure is proposed to look like. Relating to some questions posed by Terry Hendriksen during citizen input, Mr. Johnson stated he did not know why they didn't have to post a financial guarantee, but that he would be happy to do that if asked to do so. He stated he will build his buildings and the City will deed him the property, not the other way around. A draft of the parking lot will be available at City Iq~ll tomorrow. He then inquired what Mr. Hendriksen meant by cost shifting. Terry Hendriksen, 15631 Ramsey Boulevard NW, Ramsey, stated that ff he was in error on who will own the property, then he is even more concerned, because then Mr. Johnson will be operating a business on City property. He stated he thought Mr. Johnson would own all the property and then deed back to the City the Old Town Hall property. Mr. Hendriksen suggested that each time we review another area of the agreement, we find more concerns. With regard to cost-shifting, he compared it to "the fox guarding the hen house". There is no protection in the agreement for the City; no construction managers, no financial guarantees like other developments have had to place with the City, no protection for the City in terms of the Landmark State Bank realizing a benefit in which they are working full-time on the Old Town Hail and cutting a deal on the bank building. Landmark got a piece of property from the City that others would have been willing to pay more for and now they will be deciding how the citizens money will be 5.pe.n.. t. Mr. Johnson responded that he is not controlling the money along with the general cor~tractor. He did not hire the appraisal - the City did. 'It is not Our intention to cut a deal and suggested that Mr. Hendriksen is treading on soft ground. Ms. Frolik noted that waiving the financial guarantee on site plan development permits has been waived on numerous economic development projects for commercial development.