07/22/08 Twon Center WS Minutes - Laserfiche WebLink

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stated that Councilmember Dehen's point is valid and the City could possibly wait until the market turns around. Councilmember Dehen asked if "redrawing the picture" was consulting, public relations, or both. Mr. Lasher stated that the City could sit back and see what happens and respond, or it can be proactive. He stated that there has already been a lot of sitting and no action. He stated that having the development agreement in place makes it nearly impossible to move forward with a development project and the City is the only one who has any kind of control over that. He stated that Councilmember Elvig's idea was to re -vision the RTC and see if that creates a market solution that can move forward. He stated that the situation is really at kind of a "chicken and egg" stage because the bank may or may not foreclose on the property. Councilmember Dehen stated that there was extensive public input into this process and now the Council is going to step in and take the initiative and do something else which leaves out a big piece of what the public brought in. He asked if the vision was changed whether there should be additional public input. Councilmember Strommen stated that she agrees and feels there needs to be a public process if the City talks about changing this at all. Councilmember Dehen stated that the legal possibility is still just sitting there. Councilmember Elvig arrived at the meeting. City Administrator Ulrich stated that he got a message from attorney Tom Bray that there should be a summary judgment decision by the end of the year, perhaps by November. Councilmember Dehen stated that he doesn't understand why the City is waiting to file for summary judgment because then the City would get a definitive answer. Mr. Lasher stated that he agrees and feels it is a critical step and the City should get through it as soon as possible. He stated that the fundamental issue is that the only one who can agree to change the development agreement is the City. He stated the question is whether the revision process happens now or after foreclosure when there could be twelve different property owners. Councilmember Elvig stated that the banks have a potential suitor for a project. He stated that, initially, he had the mentality that the City should just sit back and see what happens. He stated that if the bank can sell a piece of property and get a project on it, they may be able to go back to the examiners and say that they are not acting as a developer and are just facilitating and mitigating the damage. He stated that he feels this may enable them to continue to draw out this process for another three years. He stated that in looking at other possibilities, he stated that he feels the land value is as low as it is going to get. He stated that the economy is poor but it is projected to turn around in a few years. He stated that his thought was that the City could purchase the land in its entirety then the City would have control over everything, including the development agreement. He stated that the biggest thing this would do is wipe out the bank and the City would then have Ramsey Town Center City Council Subcommittee Work Session / July 22, 2008 Page 3 of 10