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Economic Development /Marketing Director Backman indicated if approved, the City would <br />need to adopt a resolution or ordinance to implement this CVB tax. <br />Motion by Councilmember Elvig, seconded by Councilmember Strommen, to approve <br />membership in the Twin Cities Gateway CVB and direct staff to develop a draft ordinance to be <br />considered in March of 2012. <br />Motion carried. Voting Yes: Councilmembers Elvig, Strommen, Backous, and Wise. Voting <br />No: Mayor Ramsey, Councilmembers McGlone and Tossey. <br />7.04: Update on Sunwood Realignment Project Funding and Discussion of Right -of -Way <br />Acquisition for Sunwood Realignment and Future Armstrong Interchange (Portions <br />of this case may be closed to the public) <br />Councilmember Wise recused himself at 7:41 p.m. due to a potential conflict of interest. <br />Deputy City Administrator Nelson and City Engineer Olson reviewed the staff report. <br />The Council noted the funding scenarios differ from what had been presented in January, most <br />significantly the EDA contribution. Deputy City Administrator Nelson explained that as staff <br />worked through the process it was found the remnant land would have redevelopment potential. <br />In addition, it was found there were not significant dollars in the Storm Water Management <br />Fund, but those funds would still be included. <br />Councilmembers Strommen and Backous expressed concern with allocating the vast majority of <br />EDA dollars (75% of its reserve) since it would not allow dollars for other projects and the EDA <br />has not yet discussed this allocation. Another concern was that the City only had a certain <br />amount of tax increment so it must be careful in where to make that investment. <br />Councilmember Elvig noted it was originally presented as a $3.5 million project; however, now <br />discussion includes whether to purchase all three properties on the west side of Armstrong <br />Boulevard. He questioned whether this project was "right sized," if there was a need to purchase <br />all three properties, in total, at this time, and that these expenditures may not count towards the <br />City's match. Councilmember Elvig supported taking enough time to assure the project is <br />properly sized and does not stretch the City's finances. <br />City Administrator Ulrich stated staff is tracking all of the expenses as a portion of the City's <br />contribution towards the interchange, a $33 million project. <br />Councilmembers McGlone and Tossey indicated they would not object to use of EDA funds <br />towards this project since the road project will result in economic redevelopment and the EDA <br />would have an asset in land for redevelopment. <br />City Council / February 28, 2012 <br />Page 5 of 7 <br />