Minutes - Council - 12/12/2000 - Laserfiche WebLink

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substantial investment in the property that goes back two years and they would be willing to explore with the City the possibility of changing the location of the development if that is a priority of the City, but if the sale of the land does not go through this year there will no longer be that option because there will no longer be a funding source. Mr. Johnson noted that ACCAP fully understands that if they do acquire the land there will be building obstacles to go tln'ough and for that reason they would be willing to broaden the discussions on the location, but that discussion will be set back two years if the sale does not go fo~wvard. City Attorney Goodrich noted that even if the Council introduces the ordinance they would not be able to legally close on the sale of the property until January. Mr. Johnson replied that the issue is an accounting issue. City Attorney Goodrich noted that the buyer may not accept the interpretation of the termination and they could chose to pursue the sale of the property or force the City to pay damages. Councihnember Zimmennan replied that a lot of the decisions the Council makes are big decisions and the investlnents the homeowners have made are big also. The proposal for 31 low cost rental units seems to be out of step with that area and for that reason he cam~ot support it. Mr. Johnson replied that he can respect his opinion, but explained that the proposed development cost exceeds four million dollars. The quality of the housing is high cost townhomes that offer affordable rent. ACCAP is willing to work with any suggestions the Council might have to improve the development. Councilmember Zimmerman stated that the problem is that they are rental units. Councilmember Anderson stated that studies have been completed that show these types of developments do not devalue the single family homes in the vicinity of the development. Mr. Johnson explained that a study was completed by the Family Housing Fund which referred to a development similar to this one. They looked at nine developments and they determined that it did not impact the value of the other properties because of the level of quality of the urban quality townhomes. They would not be constructing low income housing, but affordable townhomes. Councilmember Zimmerman replied that anyone can find a study to support their position. The City has received testimony that their homes were devalued by similar developments so who is the Council supposed to believe. Mr. Johnson replied that he would be willing to provide the Council with a copy of the study. Councilmember Hendriksen stated that when the Council drafted the purchase agreement they thought they would have a Comprehensive Plan approved by the July 1~t date, which the City did their part to complete, only to have the Met Council set higher standards. At this point the City does not know what the future holds for an approved Comprehensive Plan and that is why the July 1, 2000 deadline was included in the agreement. Mr. Johnson explained that ACCAP is not seeking any zoning changes at this time and that they understand that should they proceed with a development they would have to do so under the existing zoning. He expressed the strong willingness ACCAP has to work with the City. He suggested delaying the action until the next Council meeting to allow the City Attorney time to review all of the documents. Motion failed. Voting Yes: Mayor Gamec, and Councilmember Anderson. Voting No: Councihnember Hendriksen and Zimmerman. Abstain: Councilmember Connolly. Mayor Gamec requested that the City Attorney review all of the issues that were discussed and research if a motion was made by the Council committing to the sale of the property. City Council/December 12, 2000 Page 10 of 25