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the bonds being issued, which would be in October. Up .until that time the Council can <br />determine whether this is a feasible project. <br /> <br />Councilmember Strommen noted the following information the HRA directed staff to provide <br />prior to the public hearing: Information on the City purchasing property and being reimbursed <br />by RALF funding; a fiscal analysis of the bonding cost versus revenue from the leasing; a policy · <br />f'or p~Soritizing the Highway #10 acquisitions. <br /> <br />Councilmember Elvig requested the term of the lease and conditions of the lease arrangements <br />be included in the fiscal analysis. <br /> <br />City Attorney Goodrich advised there will be taxes paid if these parcels are rented. Staff will be <br />work. ing on rolling this cost into the lease. <br /> <br />Mayor Gamec stressed the need for any cost to the City to be included in the lease. <br /> <br />City Attorney Goodrich advised on the need-to be sure the leasing amounts are at market value, <br />as thc leases cannot be subsidized by the 'City. <br /> <br />Councihnmnbcr Elvig noted one of the factors of an appraisal is the lease value of the property. <br /> <br />City Attorney Bill advised the City will be paid for all of the expenses and RALF would take any <br />proceeds fi'om the leases. <br /> <br />Councilmcmber Elvig explained the HRA discussed that the residual profits would stay with the <br />City for thc time it is owned and leased by the City. <br /> <br />Mayor Gamec directed staff to obtain a letter from the Metropolitan Council stating that the <br />Metropolitan Council will reimburse the City for properties purchased by the City prior to the <br />RA LF program acquiring the property. <br /> <br />City Administrator Norman replied he sent a letter to the Metropolitan Council asking for formal <br />clarification on that issue. <br /> <br />Motion by Councihnember Cook, seconded by Councilmember Jeffrey, to adopt Resolution #05- <br />09-309 initiating the process for the adoption of the redevelopment project area, and to adopt <br />Resolution #05-09-310 calling for a public hearing on the redevelopment project area. <br /> <br />Motion carried. Voting Yes: Mayor Gamec, Councilmembers Cook, Jeffrey, Elvig, Olson, <br />Pearson, and Strommen. Voting No: None. <br /> <br />Case #14A: Approve Purchase Agreement an.d Loan Agreement for the Purchase of <br /> Property Located in the Highway 10 Corridor <br /> <br />City Attorney Goodrich stated as the Council is aware, the City has been negotiating with Clint <br />A. Wilson fbr the acquisition of his parcel of land lying within the Highway 10 Corridor Official <br /> <br />City Council / September 13, 2005 <br /> Page 23 of 33 <br /> <br />P67 <br /> <br /> <br />