City Council Study Session Summary 2007 11 27

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City Council Study Session Summary September 11, 2007 Page 3 of 5 Ms. Hogan asked why Koelbel wanted to wait until year 3 and why there was no cap. Mr. Sheets said that by waiting until year 3 Koelbel would be able to recoup some of their investment and in regard to no cap he stated that Koelbel and the City would both benefit if the sales tax revenue was more than what they had projected. Councilor Muckle said that the cap was in years not in dollars. He stated that he was comfortable with this kind of approach. Councilor Sackett asked whether this will set a precedent. He believes the citizens will hold Council to a standard that is consistent. Mayor Sisk said that this is a unique circumstance and that each proposal needs to be looked at on its own merit. The Mayor was concerned how to insulate the lessee's proprietary information. Councilor Dalton said that this was not setting a precedent, that this deal would not fit someone else's need. City Manager Fleming asked if Koelbel's leases included any payment based on sales. Mr. Sheets stated they were not able to directly tie rent to sales volume because the market for retail space is soft now. He went on to say this was an incentive for other developers to come and do redevelopment and that City will benefit from this type of BAP. 3. Discussion - Louisville/Superior Options for Library Service Councilor Marsella gave background on the current Louisville/Superior Library Service. She stated that there is two-year agreement that ends in June of 2008 in which the Town of Superior pays $105, 000 for use of Louisville's Library in 2008. She said that Superior had presented a proposal of $60,000 for the 2009 contribution and that the City of Louisville charge $50 per household to Superior residents using the Library. The task force agreed that this proposal was unacceptable. She continued that there has been discussion about restricting library cards to Louisville residents only if the Town of Superior does not agree to an increase. Councilor Yarnell said that there was a lot of discussion about the options, but it came down to whether Louisville can afford to serve Superior residents at a reduced rate and still serve Louisville residents. City Manager Fleming pointed out that the $105,000 per year currently is for a portion of operating cost. An increase to $250,000 would cover approximately 20% of the operating cost. If 20% of the patrons went away either the Louisville residents would be provided better service or the City would have to cut back on Library costs. Library Director Mojo added that the Library was funded to serve Louisville residents. She said adding service to residents outside of Louisville has a lost