Agenda - Economic Development Authority - 10/08/2015

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forward. He stated they need performance standards in their agreements and documents because they should not get themselves in a situation like this. Chairperson Steffen stated it seemed a little late in the process but nobody wants to see this sit as it is for the next number of years. Member Hardin stated he was not against the TIF financing, pay as you go basis but he thought they needed to look at these differently going forward. City Administrator Ulrich thought the Council was somewhat divided on this in terms of if they sell the land with development guarantees to the user or do they sell the land on a speculative basis. Econ. Dev. Mgr/Assistant City Administrator Brama stated as part of their due diligence process when reviewing the purchase agreement they can add in the option of performance standards. He noted they did briefly discuss it with the EDA before they moved the purchase agreement forward and they had a split opinion on whether they should have a performance agreement included. Ms. Kvilvang thought this was the outlier because she thought the other ones that have come forward have had the performance standards included. She stated it was a Council decision at that time to do that on a speculative basis and she did not know if they would do that going forward but the last two developers they have talked to the City has known what is going to be developed upfront. City Administrator Ulrich stated the site has been graded and fill has been brought in and the site has been approved. They did have guarantees that this would not be an eyesore it not built upon. Econ. Dev. Mgr/Assistant City Administrator Brama stated anytime they get involved in a deal financially it is their standard practice to have performance standards. Chairperson Steffen stated the four year payback on the TIF note seemed very short to him. Ms. Kvilvang stated this is a very short time period versus other projects. Member Skaff stated he would support approving this item. Motion by Member Skaff, seconded by Member Brunt, to recommend to City Council the approval of the $500,000 TIF program. Further discussion: Member Hardin asked if the motion included funding from the TIF program. Econ. Dev. Mgr/Assistant City Administrator Brama stated it would. Motion carried. Voting Yes: Members Skaff, Brunt, Burandt, and Hardin. Voting No: None. Absent: Riley, William. Abstain: Steffen. Econ. Dev. Mgr/Assistant City Administrator Brama reviewed the next steps of the project. 6. ADJOURNMENT Motion by Member Hardin, seconded by Member Burandt, to adjourn the meeting. DRA F Economic Development Authority/September 17, 2015 Page 4of5