Agenda - Council - 04/09/2013 - Laserfiche WebLink

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Motion carried. Voting Yes: Mayor Strommen, Councilmembers Tossey, Kuzma, Elvig, LeTourneau, and Riley. Voting No: None. Absent: Councilmember Backous. The City Council meeting moved into a Closed Session at 5:54 p.m. The City Council reconvened in Open Session at 6:23 p.m. It was noted the Council held discussion and authorized staff to further negotiations. 2.02: 15153 Nowthen Boulevard: Review Cost Benefit Analysis of Former Municipal Center Site Management Analyst Brama reviewed the staff report. Councilmember Elvig noted in the past, this property was sought after for high -density housing and questioned if there was appetite for that option. He stated there could be $100,000 to $120,000 per acre for this 20-acre site. Management Analyst Brama stated a high -density housing analysis was not included, but could be conducted. Development Services Manager Gladhill stated staff has looked at medium- to high -density residential previously but the Council's appetite was lukewarm unless a senior housing project. Because of that, staff did not invest additional resources in undertaking that analysis. Councilmember Elvig agreed it may not be the right timing to consider residential but he wanted to raise that option since there was market interest at one time, noting there is also a school across the street. Management Analyst Brama presented staff's analysis of potential revenues, expenses, and one- time land transaction. He reviewed an updated bond analysis, preliminary analysis for Fire Station funding, and next steps. It was noted that staff reviewed the cost/benefit analysis and reached the following conclusions: 1) From a one-time land transaction scenario perspective, a residential development scenario results in a higher general tax revenue stream than does a residential development. 1 Data Center = $276,742; 2 Data Centers = $223,714; and, Residential = $28,263. 2) From a one-time land transaction scenario perspective, a residential development scenario results in a higher return for the City. Data Centers — 0 - $500,000; Residential = $1,000,000. 3) Considering the City's strategic plan of using revenues from the Subject Property to pay for a new fire station, Staff would conclude Data Center scenarios provide a stronger and more complete financial solution than does a residential development. City Council Work Session / March 12, 2013 Page 2 of 5