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Economic Development Manager Sullivan concluded by outlining the next steps. These include <br />receiving final bank approval for financing, determining whether the City should begin the <br />redevelopment plan process immediately or wait until the bank financing is confirmed, finalizing <br />the HRA loan structure, preparing the redevelopment plan and subsidy agreement, completing site <br />plan approval, and ultimately closing on the project financing. He then asked the City Council if <br />they had any questions. <br /> <br />Councilmember Riley asked whether the proposed area would qualify as a redevelopment district. <br />He requested confirmation that the project meets the statutory requirements for establishing a <br />redevelopment district. <br /> <br />Economic Development Manager Sullivan clarified that the proposal involves creating a <br />redevelopment area, not a redevelopment TIF district. He explained that redevelopment districts <br />are typically associated with Tax Increment Financing, whereas this proposal establishes a <br />redevelopment project area. <br /> <br />Economic Development Manager Sullivan stated that the area would be designated as <br />Redevelopment Area Number One. The purpose of defining the area is to identify where the City <br />anticipates future development or redevelopment activity may occur. <br /> <br />Economic Development Manager Sullivan explained that establishing this redevelopment area <br />would provide the City with greater flexibility in using Housing and Redevelopment Authority <br />(HRA) funds. By defining the area in advance, the City would be able to reinvest future loan <br />repayments and other HRA funds within that designated area for eligible activities such as housing, <br />infrastructure improvements, or economic development support. <br /> <br />Councilmember Specht asked whether the County would need to approve the creation of the <br />redevelopment area. <br /> <br />Economic Development Manager Sullivan explained that the County would approve the City’s <br />request to use the HRA funds and then transfer them to the City. He stated that once the funds are <br />provided to the City, they would be under the City’s control for administration in accordance with <br />the proposed plan. <br /> <br />Councilmember Stewart stated that she is concerned about the risks involved, as the developers do <br />not yet have an operational history. She noted that under the proposed structure, the City would <br />need to wait about a year to receive loan repayments, increasing the City’s exposure during that <br />period. <br /> <br />City Administrator Hagen responded that the lack of operating history is not unusual in this <br />situation because the organization does not sell a traditional product or service that would generate <br />a profit history. He explained that multiple parties have reviewed the organization’s financial <br />information and show revenue streams such as gambling proceeds and registration fees, indicating <br />that it handles a significant amount of money. <br /> <br />City Council Work Session / March 10, 2026 <br />Page 13 of 21 <br />