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move first on comes fi'om the residential development. He noted the commercial developers all <br />ask where the houses are. <br /> <br />Councilmember Kurak questioned where the money comes from to pay off the mortgage on the <br />21 acres. <br /> <br />Mr. Lasher replied the City's concern is that they would be acquiring 21 acres of land for one <br />dollar and assuming the rights to pay future assessments. <br /> <br />Councihnember Kurak questioned where the City would acquire money for the assessments. <br /> <br />Mr. Lasher replied the assessments would be levied against the property and would be paid when <br />the land is sold for commercial development. The roads would be built when a commercial <br />developer wants to build. <br /> <br />Cottncihnember Cook stated he does not want to go back and start over on the plan in this area. <br />The Council worked with the developer to get to this point. Taking over the core of this area and <br />trying to market it is something they did not want to get into in the first place. <br /> <br />Mr. Fcgcs stated he would appreciate the opportunity to remain as the developer and retain the <br />position as an agent for the City of the development. From the outside nothing would have <br />changed in regards to the marketing and vision, and the sourcing to put forth the tenants on the <br />site, it is just that the proceeds of the profit go to pay for those improvements they are discussing. <br />If he can remain as the developer with the City and still manage the whole process as if he did <br />own it and be compensated for that work, they would have the cohesiveness and continuity of the <br />project and the City would not be getting into the development business. He is asking for shared <br />participation of the profitability if they do better than the cost of the project. This also goes to the <br />assessments, as the City needs more than one source. The assessments are an additional source <br />of funds to pay down the obligation when it is bonded for. If the money is coming from two <br />different sources, as soon as they have paid that bill they should be able to drop the assessment <br />over thc area. The third part of the puzzle is how to solve the release from the bank, which <br />relates to thc gap financing. There is a solution, but he needs more time to figure it out. <br /> <br />Mr. Lasher explained the proposal is to give the City security and equity in the land to keep this <br />moving forward. <br /> <br />Councilmember Strommen asked if the idea is that the City would sell the land for the <br />community center, health club and theater. <br /> <br />M r. Lasher explained one of the notions in the project from the beginning is that there are pieces <br />that would likely require some public subsidy, like the community center and health club. By <br />being the fee owner of the land the City is participating in it. Ultimately the City would likely <br />have been asked to participate in those projects anyway. There is not TIF financing or other <br />vehicles to subsidize the cost of the land and this is a way to accomplish that. <br /> <br />City Council Work Session/June 15, 2004 <br /> Page 3 of 8 <br /> <br /> <br />