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City Council Meeting Minutes August 7, 2012 Page 7 of 18 DOWNTOWN LOUISVILLE GRAIN ELEVATOR SITE — 2ND READING — PUBLIC HEARING OR 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 RESOLUTION No. 50, SERIES 2012 — A RESOLUTION AMENDING THE 2012 BUDGET BY AMENDING APPROPRIATIONS IN THE GENERAL FUND AND THE HISTORIC PRESERVATION FUND AND ADJUSTING BUDGETED REVENUE IN THE HISTORIC PRESERVATION FUND — PUBLIC HEARING Mayor Muckle requested a City Attorney introduction. City Attorney Culley read Ordinance No. 1618, Series 2012 and the altemative Ordinance No. 1618, Series 2012. Resolution No. 50, Series 2012 amends appropriations in the General Fund and the Historic Preservation Fund. Mayor Muckle requested a staff presentation, which would include all agenda items relative to the grain elevator. Economic Development Director DeJong outlined Council's options for the grain elevator, which included the Rehabilitation Grant Program Agreement with Amterre Property Group, LLC or the City's purchase of the property. Option 1 - Grant Agreement with Amterre - This action would require expenditures from the HPF totaling $2.1 million and consisting of (a) $950,000 paid at the closing of the property purchase, (b) $750,000 paid as disbursements requested by Amterre for work relating to the stabilization of the Elevator, and (c) $400,000 dispersed at a rate of one dollar for every dollar of investment made by Amterre to stabilize, rehabilitate and redevelop the structure and/or other portions of the property. Economic Development DeJong noted there were significant risks with Option 1 and there are contingencies on the property, which include boundary issues and the railway easement. COUNCIL COMMENTS Council member Loo voiced her concern over the railway easement and asked if staff's time would be marginal and be repaid by the Historic Preservation Fund. City Manager Fleming noted there are other railway easements within the City, which have been resolved amicably. He estimated the cost for staff time would be approximately $10,000. City Council would decide whether those funds would be reimbursed by the Historic Preservation Fund.