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Home My WebLink About1978/10/10 - ADMIN - Minutes - City Council - Regular2. 3. 4. Call to Order Roll Call Tabulation of Bids � , MIAiUTES SPECIAL CITY COUNCIL MEETING October 10, 1978 • The meeting was called to order by President Pro Tem Backes at 12:10 p.m. The following roll call: Ronald Backes Keith Meland members were present at Tabulation of Westwood Hills Center. Jerrold Martin ,John Ralles Bids; landscaping at Environmental Education It was moved by �Councilman Meland, seconded by Councilman Martin, to designate Midland Nursery Inc. as lowest responsible bidder and authorize execution of contract in the amount of $8,337. The motion passed Adjournment Attest: , / (i�� !� Wendy B Recarding , Secretary 4-0. Upon a motion by Councilman Meland, seconded by Councilman Marrin, the meeting was ad�ourned at 12:14 P•m• Ronald Backes President Pro Tem 2. CITY COUNCIL AND Call to Order Roll Call MI:�TUTES HOUSING AND REDEV October 10, ��PMENT AUTHORITY MEETING 1978 r, . The meeting was called to order by Presi�ent Pro Tem Backes at 12;17 p,m, The following Councilmen were present at roll call: Ronald Backes Keith Meland The following Housing we�e present at roll Jane Tschida Joel Glotter Jerrold Martin John Ralles Authority call: Commissioners Thomas Williams Also present were the City Manager and Executive Director. � 3. Cherne Proposal The Executive Director indicated that subsequ ent to Council/Authority approval of the proposal to construct a.bank/office building with the City purchasing and developing a pa rking space for lease to the developer, staff has proceeded to negotiate a contract consistent with this proposal to include the vision as pr�viously indicated � to the Council and Authority. He continued � that staff was directed to negotiate a lease for parking spaces in the amount of $1,200 per year for the term of the mortgage which is 32 years, however, the developer has requested a lease for a period of 62 years with the rent to be renegotiated after 32 years at the market rate or a similar rate based on the consumer price index. He stated that because this is a substantive change �from past direction, it is being brought to the attention of the jo int body for discussion and action. Councilman Martin stated that he would not oppose this last 28 years of the lease were to be a� market rate. Boyd that price proposal if the Stauff er, represen�ing Rub en L. Anderson-Cherne, Inc., stated e uesting a rent adjustment based on the c� fnsumer the developer is r q g 1ease agreement . , index and not the current market val.ue � ncin . 60 years is necessaxy � to secure adequate f ina � ,_ -, �►ncl tic�uq.in�; nncl R�cicv�lopment Authority Meeti�g minutes; (, j t. �,' l�c��tt�c� i l. , � (lci'�.,l��t, lU, 1�1t3; l'��}�� Z , , . •�,9��r �'�-c� �'�•il� �i�CkC9 ge��d th�.t in redevelSPfort eriodstof �he T't C.i.r_y tiorm��.l.l.y i:: i�1vc�l.ved =�� t�d��'dWouldrbeeacceptable to extend r��pt:c�xim.i�el}� �� ye,zrs, however, tt 1 �� v��tvc�me►�� C�r rl» nl��t��S� term f.or 32 years in this instance. He qt��,sC.i.c��,d rt��' ��Y's legal c:apgci�Y to be involved for a onger peric�d o� �ime. C1��It-mr�n Glott�r gtlted that the Coun�il and Authority have not been prescnt�d supporti.ng docu�enration indfcatinHetcontinuedythatc�mmitt- ment on t11e part of rhe City is necessary. City n��1y be wi11ing to assur.e necessary parking but a fair price should he p�1id; the City should not be willing to subsidize, the parking.spaces bc�yond the mortgage term. He �mphasised that his ma�or concern is th��t the cieve�oper be ab1e to pay the current market rate af ter the mortgage term for the required parking spaces. Tony Cherne indic�ted that he does need assurance that parking wi11 be available for the building in the future. President Pro Tem Backes srated that he would prefer the inclusion of an option for the developer to purchase or lease the property at market value for 28 years after the initial 32 years. Councilman Mar.tin stated that this alternative would assure the developer's control of the land for the 60 year period in question. Chairman Glotter stated that if any other value less than the market value is utilized to determine the rate after 28 years, this would in effect produce an additional subsidy to the developer for this property. President Pro Tem Backes asked if the Council and Authority had any corrunents on the contract agreement. The Executive.Director stated that a language change should be incorp- orate into Seciton 4(B) to read: "up to" instead of "no more than". He also suggested that the number of parking spaces be determined at a later date when the final plans are submitted to the City and exact parking requirements can be determined. He further stated that in the section providing for substitute parkin�, the r�n�A�t of avcrE�ge distance from the bank/office building should be introduced. President Pro Tem Backes asked for further comments on the leuse agreement. The Council and Authority discussed with the developer the po4sibilit_Y of the developer acquiring the parking propexty subseque�nt �o the completion of improvements. l'IC) . - Cc�unc il �a978 P3sen3 and Redevelopment Authoriry Meetin mi p�t�ber i0, ; g _ g nutes; In response to the Council's concern relative to possible right of wa acquisitions for intersectional improvements at West 36th Street and y Nighway l00, the City Manager indi.cated that the City would be able to . delete [ at portion of the property necessary for the intersection improvements at this time and those sections of [��e property would not be included in the sale. The Executive Director stated that the development contract could be revised to provide for the purchase of the parking property at $1 per square foot which is equivalent to the write-down proposed through the lease agreement. The City Manager clarified that.the write-down would be from a base amount of the fair market value for the vacant land and the City would be assuming all costs of acquisition, demolition, relocation and development of the parking facilities. It was moved by Commissioner Williams, seconded by Councilman Martin to a�prove the development contract with the provision for the developer to purchase the parking property at $1 per square foot and to modify the language in Section 4(B) to read "up to" instead of "no more than." The motion passed 7-0. 4. Adjournment Attest: Wendy Bo� Recording Secretary The meeting was adjourned at 1:30 p.m. Ronald Qackes President Pro Tem