City Council Minutes 2012 08 07 - Laserfiche WebLink

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City Council Meeting Minutes August 7, 2012 Page 9 of 18 Council member Loo asked whether the City would wait for a State grant and noted opportunities for corporate and foundation grants are rare. Economic Development Director DeJong stated it would depend on whether the City buys the property or partners. City Manager Fleming stated the City's recommendation is to have the City purchase the property. Council member Loo feared the project could be more than $2.1 Million dollars. Mayor Muck le inquired about the adjoining property owners. Economic Development Director DeJong noted Randall Caranci, owner of the warehouse, is also interested in this project as they are crossing property lines to access their building. Council member Loo stated her understanding that the Historic Preservation Fund will be borrowing from the General Fund. She asked what assurances they would have the loan would be repaid. Economic Development Director DeJong stated it would be calculated through the annual budget process. Mayor Muckle stated there are interfund loans and noted the Water /Sewer Enterprise Fund lent money to the golf course. Finance Director Watson made the distinction between the loans from the Water /Sewer Enterprise Fund, (restricted funds) are set by ordinance and a loan from the General Fund, (unrestricted funds) is approved by resolution. The Water /Sewer Enterprise Loan includes a payment of interest, where a loan from the General Fund is calculated annually, and could be forgiven by future councils. Council member Loo asked what the administrative cost would be for these programs, such as staff time, liability insurance and maintenance. City Manager Fleming estimated the total administrative cost would be approximately $20,000. Council member Loo asked for a timeline for the proposed development. City Manager Fleming outlined the timeline for RFP process, the stabilization of the property and selling the property to investors to be a three -year period. Council member Loo noted there isn't any guarantee the building will be sold. Mayor Muckle requested public comment. Peter Stewart, 1132 Jefferson Avenue, Louisville, CO supported the recommendation. He stated all public facilities had risks. He addressed quality of life issues. Michael Menaker, 1827 West Choke Cherry Drive, Louisville, CO addressed the General Fund loan and suggested the resolution be modified to include interest. Bob Lilienfeld, 1033 Adams Avenue, Louisville, CO stated there are so many unknowns with this project. He suggested moving the elevator and developing the property for