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<br />He appreciates the patience of the Boikes. He is 100% behind this project, but they have not <br />been able to figure out how to pay for it. <br /> <br />Councilmember Pearson stated the City is holding Mr. Boike hostage; he has a moratorium on <br />that land. He does not know if the City has pursued all the financing options that might be <br />available. He does not think interest rates will come down and there is not more land available. <br />He questioned why the City could not borrow money on the corridor as a developer would, and <br />include a percentage escalator fee when the State purchases the property. The opportunity is <br />here for the land now, and Mr. Boike is not going to sit with that land forever. The City has to <br />keep that corridor and has to find the funds to do it. <br /> <br />Chairperson Strommen commented she believes the Council agrees on preserving the corridor, <br />but they looked at bonding for it and did not have the cash flow in the budget to make the <br />payments. The possibility of port authority or other options is not known at this time. <br /> <br />City Administrator Norman indicated staff is three to six months from being able to put <br />additional options in front of the Council. <br /> <br />Ms. Reuhle indicated she was informed that the RALF program expects a levy of about 3.7 <br />million dollars next year; however even that total sum is not enough for this entire parcel. <br /> <br />Councilmember Jeffrey stated at this point the corridor is not officially mapped and RALF funds <br />cannot be considered. He couldn't agree more with Councilmember Pearson about bonding the <br />money, but as Chairperson Strommen stated they have to be able to make the payments on it. If <br />the revenue is not coming it would require a cut in services to make the bond payments. <br /> <br />Councilmember Cook suggested the possibility of a land swap or bringing in someone to lease <br />the property until the time the City can obtain the RALF funds. He noted there is an asphalt <br />plant sitting on the opposite side of the road on some prime land that could possibly be moved to <br />lease this land. The money from the lease could be used to pay the principal on the loan until the <br />RALF funds come through, with the land the asphalt plant is located on worked out to be sold to <br />a better use. <br /> <br />Councilmember Jeffrey indicated his concern would be about waste from the asphalt plant being <br />that close to the river. <br /> <br />Chairperson Strommen noted a guarantee would be needed that someone would be located on the <br />site and paying enough to cash flow the payments. <br /> <br />City Administrator Norman suggested the Council consider directing staff to work with the <br />Boikes. The Boikes have been patient, but it is getting difficult for them to continue holding <br />their patience. Staff would like to determine if the port authority option or monies other than <br />from the general fund would be available to make the bond payments. Staff would also like to <br />continue exploring the TIF option. Staff would like direction to work with the Boikes to work <br />out a lease or option that would apply towards the purchase of the property. <br /> <br />Finance Committee / September 26, 2006 <br />Page 6 of8 <br />