Minutes - Council - 07/25/2017 - Laserfiche WebLink

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Jason Aarsvold, Ehlers, presented the results of the bond sales. He stated that with the great bond rating of the City, the City was able to receive three bidders noting that the low bidder had an interest rate of 1.938 percent. He noted that the competitive bidding resulted in the City having about $19,000 more to work with for project dollars because they received a lower interest rate than projected. Motion by Councilmember Kuzma, seconded by Councilmember Shryock, to Adopt Resolution #17-07-179 Providing for the Issuance and Sale of $895,000 General Obligation Street Reconstruction Bonds, Series 2017A, Pledging Special Assessments and Levying a Tax for the Payment Thereof. Motion carried. Voting Yes: Mayor Strommen, Councilmembers Kuzma, Shryock, Johns, LeTourneau, Riley, and Williams. Voting No: None. 7.05: Riverstone Development Purchase Agreement(Portions may be closed to the public) Asst. City Administrator/Economic Development Manager Brama reviewed the staff report and stated that staff is comfortable with this proposed purchase agreement as it fits within the City's policies and procedures. He stated that the land proceeds are to be dedicated to the City's Park Fund and CBRE commission will be paid via land proceeds, per the listing agreement. He stated that this transaction is a direct result of the City's desire to realign Puma Street, noting that Capstone did not seek the purchase of this property originally and explaining that the City made this request/suggestion. He stated that the sale price matches the market rate. He noted that staff does not feel a need to go into closed session but if the Council has the desire to further negotiate price, he would suggest going into closed session. He noted that the EDA discussed this case on July 13th, in open session, and was generally supportive of this purchase agreement and is excited for the Riverstone project. He stated that the EDA recommends that the City sell this land to Riverstone. He noted that the EDA did specifically suggest staff counter-offer Riverstone's original offer price, which was $25,000 per acre. He stated that staff did provide Riverstone with a counter-offer of$35,000 per acre but Riverstone stated that they are not willing to accept the EDA's counter-offer as they believe the market price is $25,000, based upon recent land transactions in the immediate area. Councilmember Williams stated that they did review this in the EDA and the EDA was generally supportive. She stated that she raised the concern that this parcel has the same market price because of the higher density proposed and the location at the corner of Puma and Alpine makes it more desirable than the interior parcels. She stated that she believes that the land value would be higher than the interior lots but acknowledged that there are other factors that come into play. Mayor Strommen asked Capstone to come forward and explain why the counter-offer was not accepted. Steve Bona, Capstone Homes, stated that the property that is currently contracted had a higher underlying zoning than this,property and because of that the reverse argument is true that the interior is more valuable because of the zoning. He stated that this takes into account where all City.Council/July 25,2017 Page 8of17 •