City Council Minutes 2012 10 16 - Laserfiche WebLink

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City Council Meeting Minutes October 16, 2012 Page 6 of 15 made changes including layoffs. The expansion of Alfalfa's in 2013 was pushed back until they were back on track in the spring of 2012. Mr. Retzloff contacted City Manager Fleming and Jim Loftus about the Louisville site and the City offered a business assistance agreement. He stated Alfalfa's is in good financial condition. Council member Keany asked Economic Development Director DeJong why the negotiations included a 100% rebate of the sales tax revenues instead of the customary 50%. Economic Development Director DeJong stated Alfalfa's requested the rebate be front loaded to help with the initial startup operation. He explained having the assistance at the beginning is more beneficial to the project. Council member Sackett inquired whether the apartment project is part of the Business Assistance Agreement for Alfalfa's. He opposed the agreement if it is part of the apartment project. City Manager Fleming explained the Business Assistance Agreement is purely for Alfalfa's. The redevelopment of the site is subject to all the City land use regulations. It must meet comprehensive plan requirements, land use and zoning requirements. Traffic studies will be completed before the Loftus proposal goes before the Planning Commission for review and recommendation is made to the City Council. City Attorney Light confirmed the business assistance agreement does not include approval of the Loftus development proposal. The land use must go through a separate process and Council's consideration of the business assistance agreement for Alfalfa's does not serve as an endorsement for the Loftus proposal. He noted Alfalfa's is taking a risk that the land use process will go forward. Council member Sackett asked if the City is obligated to pass the Loftus apartment proposal. Mayor Muckle noted the Loftus proposal would have to go through the land use process. Council member Sackett asked Mr. Retzloff if the apartment proposal was denied would this be a deal breaker. Mr. Retzloff stated he would be disappointed and it would be a deal breaker. He was confident in working with Mr. Loftus that this proposal will be a private/public partnership. He reported on a public meeting where there was public support for the project. Council member Loo stated this business assistance agreement is unusual because the City has never done an upfront incentive. She calculated the upfront incentive is $200,000 and should Alfalfa's leave, the liability is limited to $200,000. Economic Development Director DeJong confirmed some of the fees would not be realized. Council member Jasiak thanked Mr. Retzloff for coming forward with his proposal. She agreed this is an unprecedented business assistance agreement and very aggressive. She recognized this is an exciting opportunity for the City.