Minutes - Council Work Session - 07/26/2022

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maintenance such as snow plowing that will occur with more roadway. He stated this is a larger extension that was originally planned for. He referenced Mr. Orcutt’s suggestion of tunneling under Highway 10 and stated the feasibility of that idea was unknown. Economic Development Manager Sullivan asked if project costs are being saved now what costs are the City going to be incurring in the future. He stated if the road is run, there is the initial cost savings but what is cost of what the future of that area is going to be. He asked if it is envisioned that EZ Auto is going to be there for another 25 years and that is what the City wants for the vision of Highway 10. He asked if it might be best to look at what the vision is for the front door of the COR, is it car lots or should it be green space. He stated there are other things that don’t have answers for. He stated in the end the City will have two parcels that are difficult to develop. He thought there was one lot that may have development potential. He speculated whether or not the City will be pushed to liquidate some of these properties to get money back into the RALF program of it they will be able to hold these properties and wait until more development can occur. He stated his understanding is that with the proposed plan the outlined land would be acquired and proportionally the RALF loans would be paid for the square footage. He thought Finance Director Lund was excited to retire these RALF properties and to bring back on the tax rolls. He expressed concerns that there is an expectation from the RALF program that they are going to receive a good amount back on these properties. He stated the reality is the agreements stated that if it is not used for highway purposes they are to sell the properties at what is considered market values. He stated he thought the appraisals are going to come in less than the loan value the City has on them. He added without having sewer and water to these parcels from a market value standpoint he thought they are going to be valued lower. He was unclear what direction the RALF program would give. Mr. Orcutt commented he thought they would want to be made whole, whether it was for the product or not, depending on how the loan was written. He suggested not looking at the long- range vision but to ask the question if they can avoid this property and not take it. He stated that is the obligation from a design stand-point. He stated he understood the differing opinions of the City Staff. He stated the real risk is buying out a property and ten tenants which is a lot of risk and money. He stated if it can be shown that it can be avoiding there is a legal basis there as well. He stated it should be looked at from that stand-point and encouraged them to speak with the attorney. He stated there will be four lots there and someone is likely to try to put a private drive there at which point the County would liquidate the property and selling it off at value. He stated this gives a different opportunity potentially. He thought someone would want to do something in the future but it was unclear what that would be or what would be allowed. He stated it is a design option that he is looking for direction on and will move forward with whatever is best for the City. Mayor Kuzma asked when a decision would need to be made. Mr. Orcutt replied the attorney would like to have something by the first part of August. He repeated a potential savings of several million dollars. Councilmember Woestehoff commented the map shows the frontage road extension and asked where the frontage road is currently proposed to end. Mr. Orcutt showed the proposed end on the map. City Council Work Session /July 26, 2022 Page 3 of 19