Agenda - Council - 09/27/2005 - Laserfiche WebLink

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thc bonds being issued, which would be in October. Up until that time the Council can detcm~inc whether this is a feasible project. ('mmcihnember Strommen noted the following information the HRA directed staff to provide prior to thc public hearing: Information on the City purchasing property and being reimbursed by RAI,F fi~nding; a fiscal analysis of the bonding cost versus revenue from the leasing; a policy fi)r prit~ritizing the Itighway #10 acquisitions. (',ouncilmcmbcr Elvig requested the term of the lease and conditions of the lease arrangements be included in the fiscal analysis. City Attorney Goodrich advised there will be taxes paid if these parcels are rented. Staff will be working on rolling this cost into the lease. Mayor Gamec stressed the need for any cost to the City to be included in the lease. (Tity Attorney Goodrich advised on the need to be sure the leasing amounts are at market value, as thc leases cannot be subsidized by the City. Councihnember Elvig noted one of the factors of an appraisal is the lease value of the property. City Attorney Bill advised the City will be paid for all of the expenses and RALF would take any proceeds l"rom the leases. ('.ounci hncmber El vig explained the HRA discussed that the residual profits would stay with the (,ity Ibr the time it is owned and leased by the City. Mayor (;amec directed staff to obtain a letter from the Metropolitan Council stating that the Metropolitan Council will reimburse the City for properties purchased by the City prior to the R Al,l.' program acquiring the property. ('ity Administrator Norman replied he sent a letter to the Metropolitan Council asking for formal c[ari [5cation on that issue. Motion by Councilmember Cook, seconded by Councilmember Jeffrey, to adopt Resolution #05- 09-309 initiating the process for the adoption of the redevelopment project area, and to adopt Rcsolutirm #05-09-310 calling for a public hearing on the redevelopment project area. Motion carried. Voting Yes: Mayor Gamec, Councilmembers Cook, Jeffrey, Elvig, Olson, Pearson, and Strommen. Voting No: None. Case #14A: Approve Purchase Agreement and Loan Agreement for the Purchase of Property Located in the Highway 10 Corridor City Attorney Goodrich stated as the Council is aware, the City has been negotiating with Clint A. Wilson For the acquisition of his parcel of land lying within the Highway 10 Corridor Official City Council / September 13, 2005 Page 23 of 33