Agenda - Council - 05/14/2019 - Laserfiche WebLink

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determine the mix of the local match after the motion is adopted tonight. Community Development Director Gladhill stated that there would be additional time for negotiation on the local match. He stated that it appears that in order for some members of the Council to become comfortable with the motion, the motion perhaps would need to be amended to include the language using the ACHRA fund. Community Development Director Gladhill stated that there was mention that perhaps the developer pay the design and engineering costs and the City pay the remaining match balance but that has not been commented on from the developer. Don Kveton, Village Bank, stated that he was not planning and is not planning to pay the design and engineering costs. He noted that the bank has already lost $700,000 to date. He believed that this is the best outcome for the property and will be the last attempt from Village Bank. He explained that even if the lots are sold at the proposed estimate, the bank will still lose over $250,000 on the project. He stated that they are attempting to cleanup the site and be done with the property while improving the existing neighborhood. Motion by Councilmember Musgrove, seconded by Councilmember Kuzma, to amend the motion to Adopt Resolution #19-101 Authorizing Application for the Tax Base Revitalization Account and Adopt Resolution #19-102 Authorizing the Application and Committing Local Match for the Minnesota Department of Employment and Economic Development Contamination Cleanup Grant, identifying the City portion of the local match to be funded from the Anoka County Housing Redevelopment Authority Fund. Further discussion: Councilmember Riley stated that he would like to see a match from the developer as well and therefore would not support this action. Councilmember Shryock asked if the motion would intend that the City's portion of the match be funded through the ACHRA, which leaves room for further negotiation or contribution from other entities. Community Development Director Gladhill stated that there can still be additional negotiation between the developer and entities for the local match prior to grant award. Motion carried. Voting Yes: Mayor LeTourneau, Councilmembers Musgrove, Kuzma, Heinrich, and Shryock. Voting No: Councilmember Riley. 7.03: Adopt Resolution #19-094 Approving Purchase Agreement for North 9.3 Acres of Lot 1, Block 1, Bury and Carlson Addition; Case of Knoll Properties LLC (Portions may be closed to the public) Economic Development Manager Sullivan reviewed the staff report and recommendation of the EDA to adopt Resolution #19-094 approving the purchase agreement for the north 9.3 acres of Lot 1, Block 1, Bury and Carlson Addition; Case of Knoll Properties, LLC; subject to City Attorney review and approval. Councilmember Riley stated that the EDA reviewed this case and the group recommended unanimous approval as this is a great success story of a local business that continues to grow and expand in the community. He noted that this sale of City owned property is within the deal range. City Council / April 23, 2019 Page 7 of 12