City Council Study Session Summary 2007 11 27

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City Council Study Session Summary September 11, 2007 Page 2 of 5 Buzz Koelbel appreciated the opportunity to have a discussion with City Council in an informal format, and participate with the City in generating revenue and retail opportunities. Mr. Sheets provided a handout and gave a brief background on the property. He explained that it was a good location for retail and that Koelbel had identified the office building as a retail site. He stated Koelbel has not had much success offering it as retail due to its current condition. He said that the plan was to re- skin the entire building, redo the parking lot, create store fronts, and patio areas. Koelbel felt that once they started the project that more tenants would be interested in leasing retail space. He went on to explain that redeveloping a building can be more costly than building a new building. Mr. Koelbel said that tenants want to see that it is under construction before committing to a lease. Councilor Dalton asked what the life of the building would be. Mr. Sheets stated at least 25 years. Councilor Dalton wanted to know how does the small amount of BAP in comparison to the overall amount of the project benefit Koelbel. Mr. Sheets explained that it looked good to lenders that they had the participation of the municipality. Mr. Koelbel added that it also showed the company that there was a cooperative effort from the City. Councilor Marsella wanted Ms. Hogan's opinion about the project. Ms. Hogan stated that she felt the City was underserved in that area for retail. She said that generally people (retail vendors) can't see the project with in a timeframe vs. "in the works". She agreed that redevelopment is very expensive. She went on to state that all in all this was a good deal for the City. Councilor Muckle asked if the 40% on the Koelbel side came from the 3% on the spreadsheet. Mr. Sheets replied that it did. Councilor Muckle also inquired about the access point. Mr. Sheets said that currently it is further south than they would like and that they were currently working with Planning and Public Works about another access point. Councilor Sackett stated that the business north lacked parking and wanted to know if this would be an issue for this project. Mr. Sheets said that there would not be a parking issue. Councilor Marsella wanted to know what the timeframe was for the project if the City approved the BAP. Mr. Sheets that they anticipate it being ready by early next summer. Councilor Yarnell said that the reason BRaD wanted to bring this forward in a Study Session was to have a discussion about multi-year sharing which is a new kind of plan compared to past BAPs and if Council wanted to discuss moving in that direction.