City Council Minutes 2012 08 07 - Laserfiche WebLink

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City Council Meeting Minutes August 7, 2012 Page 8 of 18 Option 2: City Purchase of Property. If the City Council approves purchasing the property, this action would require expenditures from the HPF totaling at least $1.7 million and consisting of (a) $950,000 (plus closing costs) in 2012 to acquire the property, and (b) additional expenditures likely totaling at least $750,000 in 2012 and 2013 to stabilize the Grain Elevator. Economic Development Director DeJong noted there are also significant risks associated with Option 2 because with historic preservation there are so many unknowns and the City would be solely responsible. The redevelopment of the two projects (grain elevator and NAPA building) should be done together. Other grain elevator projects have received state grants and funds, however there are no guarantees this project would receive state funding. MOTION: Mayor Muckle moved to incorporate the staff presentation, all public comments, emails and documents into the record, seconded by Council member Loo. All were in favor. COUNCIL COMMENTS Council member Jasiak asked if there were any estimates for the improvements to the NAPA building. Economic Development Director DeJong stated improvements would consist of asbestos mitigation and parking improvements and are estimated at $50,000. General fund money would have to be allocated to fund those improvements. Council member Jasiak asked if the NAPA building improvements would be a part of the RFP. Economic Development Director DeJong stated it could be two RFP's or combined together under one RFP. It would be Council's discretion. Council member Loo asked what recourse citizens have to challenge the City Council's decision on this issue. City Attorney Culley stated citizens could petition for a referendum or file for a court action for a judgment against the City. Council member Loo asked if the public filed a challenge with the Historic Preservation Commission, how successful would the challenge be. Economic Development Director DeJong explained the Historic Preservation Commission Ballot issue allows rehabilitation and preservation of historic structures therefore the success of the challenge would be very small. Council member Loo asked if there are options for the balance of the Historic Preservation funds to be used for museum purposes or the general fund or whether the tax could be repealed early. Economic Development Director DeJong stated those funds would be used for historic preservation and could not be used for other purposes. Council member Loo asked about grant opportunities through the State Historic Preservation. Economic Development Director DeJong voiced his belief there would be grant funds available through the State.