Minutes - Council - 06/09/2015 - Laserfiche WebLink

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development of this size is not adequate and that amount should be substantially higher. He believed that the developer should have their money involved before they ask the City. Mayor Strommen questioned if it would be fair to look at the equity amount on a percentage basis rather than a specific amount as project costs can vary. Ms. Kvilvang stated that perhaps a percentage would be a better fit as that would be a sliding scale associated with the project cost. Mayor Strommen stated that one option would be to direct staff to use this but review the equity and convert that to a percentage minimum, and bring the recommendation back to the Council. Asst. City Administrator/Economic Development Manager Brama summarized the direction to staff to work with Ehlers to develop what a counteroffer may look like and present that to Dominium to determine if they would amend their LOI to meet the market rate based on the discussion, specifically regarding the assistance portion. The Council would like a different location and staff should review different sites within The COR to determine if an alternate site would work and discuss and/or introduce a mixed use project that would introduce retail on the site. The return on investment for the City should be made clear to show the benefit to the City and an equity percentage should be developed. The Ehlers memorandum will be used as an informal policy. Mayor Strommen clarified that the counteroffer would be general and would not include specific parameters, as specifics would fall to Dominium to generate. Motion by Councilmember LeTourneau, seconded by Councilmember Williams, to direct staff to revisit the project concept to fit the discussion summarized by Asst. City Administrator/ Economic Development Manager Brama, so that an LOI can be resubmitted by Dominium. Motion carried. Voting Yes: Mayor Strommen, Councilmembers LeTourneau, Williams, Johns, Kuzma, and Riley. Voting No: None. Absent: Councilmember Shryock. 7.06: Consider Purchase Agreement with WESTCO Properties LLC (Portions were Closed to the Public) Asst. City Administrator/Economic Development Manager Brama reviewed the terms of the Purchase Agreement from WESTCO Properties LLC for .95 acres of City -owned land at 6590 141St Avenue NW in the City's original business park. The subject property is currently zoned E-1 Employment District and had been purchased by the City in 2006 for redevelopment purposes at a price of $211,200. At that time, the existing improvements were removed and the site sat vacant, tax exempt, and available for sale since 2006. This property is currently listed with CBRE for $105,000. Asst. City Administrator/Economic Development Manager Brama stated the EDA reviewed this case at its June 4, 2015, meeting and found the proposed project is a good fit for the subject property, 24 Restore is a valued and respected local business, and the proposed project would City Council / June 9, 2015 Page 14of18