City Council Minutes 2012 07 17 - Laserfiche WebLink

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City Council Meeting Minutes July 17, 2012 Page 3 of 12 SOUTHEAST OF THE INTERSECTION OF FRONT AND ELM STREETS (THE "PROPERTY"), WHICH PROPERTY IS BEING ACQUIRED AS A GENERAL ASSET OF THE CITY AND FOR POTENTIAL REHABILITATION OF THE HISTORIC GRAIN ELEVATOR LOCATED ON THE PROPERTY, AND ALL OR PORTIONS OF THE PROPERTY MAY SUBSEQUENTLY BE SOLD WITHOUT NECESSITY OF ELECTION AS SUCH PROPERTY IS NOT BEING ACQUIRED FOR ANY PARK, OPEN SPACE OR GOVERNMENTAL PURPOSES. ORDINANCE NO. 1618, SERIES 2012 — AN ORDINANCE AUTHORIZING THE PAYMENT OF CITY MONEYS FOR THE ACQUISITION OF PROPERTY LOCATED AT 540 AND 544 FRONT STREET IN LOUISVILLE AND COMMONLY REFERRED TO AS THE DOWNTOWN LOUISVILLE GRAIN ELEVATOR — 1ST READING — SET PUBLIC HEARING 08/07/2012 Mayor Muckle stated comments on the grain elevator did not have to be item specific and requested an introduction by City Attorney Light. Attorney Light introduced the items. Resolution No. 41 would approve the non-binding letter of intent with Amterre Property Group laying the groundwork for potential agreement for development of the property. The next item meets the requirement to give public notice for any property purchases in the event Council approves a purchase. He read Ordinance No. 1618, Series 2012 and reminded Council this is first reading and would set the public hearing for August 7 when Council would make a decision whether or not to adopt and provide for potential purchase of the grain elevator property. The three documents afford two possibilities: proceeding with Amterre for a public/private partnership or potentially purchasing the property as a City asset. Mayor Muckle called for a staff presentation. Economic Development Director DeJong stated since the Request for Proposals (RFP) process, staff has been working with Amterre Property Group to determine a way, with City assistance, to save the historic grain elevator. He addressed the two possibilities as presented by the City Attorney. • 1. If the City Council adopts a binding agreement consistent with the existing letter of intent, this action would require the City to commit at least $2.1 million from the Historic Preservation Fund (HPF) and assume the risk of cost overruns associated with the work needed to preserve the Grain Elevator and the risk of grants not materializing as anticipated. The timeline for payments specified by Amterre would require an interfund loan of up to $1.2 million from the General Fund to the HPF to cover payments required through 2013. The letter of intent also outlines some rebating of building permit fees and use tax and waives the land dedication requirement.