Minutes - Council Work Session - 01/21/2014

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Councilmember Backous stated that is a big issue for him. Ms. Kvilvang stated the City will see a lot of commercial development in years to come, and this issue can be revisited and future analyses completed. Mayor Strommen asked how the current assumptions are different from what was initially expected. Ms. Kvilvang stated the values have stayed the same because office use was significantly reduced. She added, however, a lot of development has been pushed further out, and the City still has land west of Armstrong Boulevard, possible tax increment for which has not been included in the analysis. Mayor Strommen asked for clarification regarding possible timeline for reviewing the analysis. Ms. Kvilvang stated they will work with the County in April 2014 to determine parcels, and details will be available for Council review by summer. Councilmember Riley requested clarification regarding the deal with Flaherty & Collins that will terminate in 2015. Ms. Kvilvang stated a note will be issued to them for $3 million to be paid over 25 years. Mayor Strommen stated it is not an issue that any of the present Councilmembers can address, as they were not involved. Councilmember Kuzma asked whether there is any incentive for Flaherty & Collins to pay off their debt. Ms. Kvilvang stated they did not meet the time parameters necessary for incentives to be considered. Finance Director Lund stated they will pay a higher interest rate until they put up the funding. The City Council agreed with the recommendations of Ms. Kvilvang. Mayor Strommen thanked Ms. Kvilvang for her presentation and analysis. 2.02: Landform Professional Services Contract City Administrator Ulrich introduced this topic for discussion by the City Council regarding a contractual provision related to carry -over compensation for Landform. He stated City staff would like to outline circumstances related to the contract before the City executes an agreement next week with CBRE at the City Council's Regular Session Meeting on Tuesday, January 28, 2014. City Council Work Session / January 21, 2014 Page 4 of 11