Agenda - Council - 01/14/2020 - Laserfiche WebLink

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AEON will not be able to meet the required conditions within the allotted timeframe. He noted that AEON could come back with a new proposal if desired. Mayor LeTourneau asked what would happen with the earnest money. Community Development Director Gladhill confirmed that the City would keep the $30,000 in earnest money if the agreement expires. Councilmember Specht asked if the delay is due to a delay in the City process. Community Development Director Gladhill explained the type of financing that AEON is competing for, which is the primary reason this project has been delayed. Mayor LeTourneau stated that the City does manage an inventory of housing stock to ensure that one housing product is not overbuilt. He noted that this project has met the inventory needs. He explained that in order to attract more retail and restaurant, the City needs to have more residents, which is what the apartment buildings are providing. He explained that without having the additional population, it will be harder for the dream of retail and restaurants to come to fruition. He noted that there has been some activity in the desire for those businesses to come to Ramsey because of the growing population. He stated that the City has a process in place where the EDA reviews these cases and a path that cases typically follow, noting that this case was not provided with that ability. He did not believe that allows the City to be ethical in respecting that process. He asked that the Council respect the integrity of the process. He asked that the case be supported as presented tonight, which will allow input from other Boards and Commissions which will lead to more meaningful discussion. Councilmember Riley stated that this agreement has already been amended twice and therefore he thought the term ethics of following the process to be an odd choice of words. Councilmember Musgrove stated that there is a desire from the community to have more retail and a concern with an increase in multi -family housing without the growth in the retail sector and therefore will support the motion as proposed to deny the extension. Councilmember Kuzma stated that this is a market driven purchase agreement that the City previously approved. He noted that the business has put $30,000 in earnest money on the property for this purchase. He recognized that there are sometimes things that happen in business that the owner cannot control and would support the extension. He noted that phase one was sold out prior to completion of construction and would think phase two would provide a similar result. He believed that the City could provide the additional six weeks and if the developer cannot meet the requirements in that time, it could be denied at that time. Councilmember Menth stated that he is against putting a roadblock in that would take away the $30,000. He asked if this would be a six -week extension. Community Development Director Gladhill explained that the six -week extension would provide the City with the ability to follow its typical process. Councilmember Specht stated that there has been a contract in place and amendments have been made and the City has worked as hard as it could to accommodate the developer. He stated that in six weeks the Council would most likely be having the same discussion. Motion carried. Voting Yes: Councilmembers Heinrich, Riley, Musgrove, and Specht. Voting No: Mayor LeTourneau, Councilmembers Kuzma and Menth. 7.04: Adopt Resolution #19-264 Ordering Feasibility Report for Improvement Project #20- 02, 2020 Overlay Improvements City Engineer Westby reviewed the staff report and recommendation to adopt Resolution #19-264 ordering a Feasibility Report for Improvement Project #20-02, 2020 Overlay Improvements. City Council / December 10, 2019 Page 12 of 17