Laserfiche WebLink
Mr. Engen stated that they have been talking about three ramps and the most recent discussions <br />have suggested that they start by cost sharing the first ramp and allocate their 50 percent of the <br />cost project wide, which would add about 70 to 80 cents per square foot. They were not sure that <br />based on the final design if the second ramp would be needed. The third ramp may be a multi- <br />mogul station that could include grant funds. <br /> <br />Councilmember Elvig stated that everyone was in agreement that structured parking is critical, <br />but he was not sure that ramp two or three were as critical. That being said the City needs some <br />guarantee that they can force the structured parking in order to get the commercial development. <br /> <br />Mr. Feeges replied that their desire is exactly that. If anything is new to the process it is the ramp <br />and how to get integrated with public/private financing. Nobody in the Twin Cities has <br />embraced the concept as of yet. There are a lot of options to consider, but they have not had the <br />time to really research all the options. The other thing they have not been able to do as of yet is <br />build value. Today the land value is worth $5.00 a square foot, but tomorrow it could be worth <br />$11.00 per square foot once the project starts, which could then be another source of funds. They <br />as developers absolutely want a ramp and will commit to the ramps, but how they get there is <br />ongoing. He stated that he would agree with not being able to go forward with construction until <br />the ramp is completed. <br /> <br />Councihnember Elvig stated that any development is a risk, but the question is at what risk is the <br />City willing to put others money into a pool. The stumbling block he has is if in fact they stop <br />the project the City is already committed to millions of dollars and how are they going to pay that <br />back without development. <br /> <br />Councihnember Strommen stated that she would be really reluctant to have a moratorium as <br />being a remedy because the City will be on the line for bonds at that time. <br /> <br />Mayor Gamec stated that if the cost fails completely on the developer it might have an impact on <br />the development. The parking ramp has to be a commitment to start as soon as the retail <br />development starts. <br /> <br />Mr. Feeges replied that if the responsibility of constructing the ramps comes back onto the <br />developer they will figure out how to get the ramp built. They have already begun looking at <br />options. <br /> <br />Mr. Engen suggested that they put together a proposal for the construction of one ramp based on <br />the 50/50 split with the City and allow the developer to consider other options that would have to <br />be agreeable by all parties. <br /> <br />Councilmember Cook inquired if there was a way to word a development agreement that says the <br />parking ramps will be installed, but it does not lock down how they will be financed. <br /> <br />Mr. Feeges suggested that they provide a guarantee to the City that the structures will be <br />constructed but allow the developer time to research other options. <br /> <br />City Council Work Session/September 2, 2003 <br /> Page 5 of 8 <br /> <br /> <br />