HomeMy WebLinkAbout11.30.88 Special Council Minutes
MINUTES
COUNCIL MEETING
SPECIAL
NOVEMBER 30, 1988
1. Mayor Kelly called the meeting to order at 8:00 P.M.
Members Present: Donaldson, Galler, Kelly, Mayer, Sprute.
Members Absent: None.
Also Present: Administrator Thompson, Attorney Grannis.
2. The purpose of the meeting was to consider the developers agreement for
Economic Development District No.1 (Duo Plastics).
3. Administrator Thompson presented a summary of the agreement, noting that the
major security behind the developers agreement was a payment in lieu of taxes
provision and a letter of credit equal to the outstanding principal balance and
one year's interest. The City also reviewed a memo from Attorney Ernie Darflinger
outlining the terms and conditions. Administrator Thompson indicated that it
was proposed at this time to use internal financing. Attorney Grannis indicated
that his firm had reviewed the agreement and was satisfied with the terms and
conditions. Councilmember Mayer stated that the proposed project cost was
$165,000, but the developer was only to receive $137,000. Administrator Thompson
stated that some of the difference was due to legal and administrative costs but
the majority was for lost investment opportunity since the project would not generate
any income for approximately 2 years. Councilmember Galler asked if the City was
"first in line" in regards to the reversionary clause. Mr. Darflinger stated
that the reversionary clause only applied until a certificate of completion was
issued. If the City exercised the reversionary clause, the City could complete the
project or sell the property, but it would be subject to satisfying the mortgage.
Jim Romberger indicated that the cost of the entire project had risen to
$1.5 to $2.0 million.
4. MOTION by Kelly, second by Galler to adopt Resolution No. R87a-88 approving
the developers agreement with Duo Plastics, Inc. relating to Development District
No. 1. APIF, MOTION CARRIED.
5. MOTION by Donaldson, second by Galler to adjourn at 8:45 P.M. APIF, MOTION
CARRIED.
Respectfully submitted,
~~ )7r-
Larry Thompson
City Administrator
Approved