Laserfiche WebLink
Econ. Dev. Mgr/Assistant City Administrator Brama stated the amount of fill brought in was <br />close to $500,000 so it was hard to say if they would have come in or not. <br />Member Hardin stated PSD response shows the single largest overage is the actual bid for the <br />construction of the building. <br />Chairperson Steffen thought that was correct because it was bid a year ago versus today. <br />Member Skaff stated they have to go back to the time that the City sold the land to PSD, had <br />they come to them knowing that there was $500,000 in fill needed at that time they may have <br />required the City to bring the land up to a buildable position and it is possible back then that the <br />City would have acknowledged that. <br />City Administrator Ulrich stated this was probably an engineering calculation mistake. He <br />thought they had more tagged on the construction costs that went up or there was some initial <br />miscalculations that were made for this site. <br />Chairperson Steffen stated the requirement for the fill has not changed. <br />City Administrator Ulrich stated it has not. <br />Member Hardin found it frustrating that when they sold the parcel to PSD that they did not have <br />requirements with financing in place and construction costs in place before they closed on the <br />lot. He thought this is something that the City should put in place before they close going <br />forward. He stated they need performance standards in their agreements and documents because <br />they should not get themselves in a situation like this. <br />Chairperson Steffen stated it seemed a little late in the process but nobody wants to see this sit as <br />it is for the next number of years. <br />Member Hardin stated he was not against the TIF financing, pay as you go basis but he thought <br />they needed to look at these differently going forward. <br />City Administrator Ulrich thought the Council was somewhat divided on this in terms of if they <br />sell the land with development guarantees to the user or do they sell the land on a speculative <br />basis. <br />Econ. Dev. Mgr/Assistant City Administrator Brama stated as part of their due diligence process <br />when reviewing the purchase agreement they can add in the option of performance standards. <br />He noted they did briefly discuss it with the EDA before they moved the purchase agreement <br />forward and they had a split opinion on whether they should have a performance agreement <br />included. <br />Ms. Kvilvang thought this was the outlier because she thought the other ones that have come <br />forward have had the performance standards included. She stated it was a Council decision at <br />that time to do that on a speculative basis and she did not know if they would do that going <br />Economic Development Authority/September 17, 2015 <br />Page 4 of 6 <br />