10/19/2015 - City Council Finance CommitteeFINANCE COMMITTEE MEETING
MONDAY, OCTOBER 19, 2015
12:30 P.M.
FIRE ADMINISTATION BUILDING
CONFERENCE ROOM
AGENDA
I. AGENDA ADOPTION
II. FIRE ADMINISTRATION BUILDING UPDATE
III. CEDAR GROVE UPDATE
IV. OTHER BUSINESS
V. ADJOURNMENT
Agenda Information Memo
Finance Committee Meeting
October 19, 2015
II. FIRE ADMINISTRATION BUILDING UPDATE
DIRECTION TO BE CONSIDERED:
To receive an update on the status of the Fire Administration Building
FACTS:
➢ Per the request of the committee, the senior management team has identified a
variety of uses to consider for the Fire Administration building, which will be shared
with the committee at the meeting.
➢ A tour of the Fire Administration building will also be provided to assist in
discussions regarding the usage options for the site.
ATTACHMENTS: None — Information to be provided at meeting.
Agenda Information Memo
Finance Committee Meeting
October 19, 2015
I11. CEDAR GROVE UPDATE
DIRECTION TO BE CONSIDERED:
To receive an update on the status of development within the Cedar Grove
Redevelopment District and provide direction to staff regarding next steps in that
regard.
FACTS:
➢ A number of projects have been moving forward within the Cedar Grove District. It is timely
to provide the Committee with an update on specific aspects at this time.
ATTACHMENTS: None — Information to be provided at meeting.
Finance Committee Meeting Notes
October 19, 2015
Committee Members Present: Mayor Maguire, Councilmember Bakken
Staff Present: Dave Osberg, Dianne Miller, Jon Hohenstein, and Erik Slettedahl. City Attorney
Bob Bauer also present.
I. AGENDA ADOPTION
Mayor Maguire moved, Councilmember Bakken seconded a motion to adopt the
agenda as presented.
II. FIRE ADMINISTRATION BUILDING UPDATE
The committee toured the Fire Administration building and discussed possible uses
for the building. There was consensus that a use for the building needs to be
determined within the next calendar year to coincide with the bond sale for City Hall
improvements. Interest was expressed to pursue a possible partnership with
multiple organizations to rent space at Fire Administration in conjunction with some
City operational needs. There was consensus that the partnerships should result in
rented space, rather than space being offered at no fee. City Administrator Osberg
noted he would continue conversations with several governmental and non-profit
agencies to explore interest in the Fire Administration building.
The committee requested a few vetted options be brought to the City Council at a
workshop in January or February of 2016.
III. CEDAR GROVE UPDATE
Staff and the City Attorney updated the Committee on the status of Morrissey
Hospitality's efforts to secure capital to proceed with the construction of the Home2
by Hilton project at Cedar Grove. Since the Morrissey group closed on the property
on April 24, 2015, they have updated their construction plans to the current Building
Code and have a footing and foundation permit application ready to be released by
Building Inspections, they have selected a building contractor and they have pursued
several additional investors in an effort to close the equity gap.
The City Attorney explained that the Repurchase Agreement called for the EDA to
repurchase the property if construction had not commenced by October 24, 2015.
He indicated a written request had been received from the Morrissey Group asking
for an additional six month extension of the agreement.
The Committee noted that the developer has been pursuing equity for at least two
years and, while they recognize the steps made to finalize the deal, they indicated
that any additional extension would need to include performance steps to assure
either that construction would commence in the spring of 2016 or that the EDA
would repurchase the property and pursue other development partners for the
property. The Committee also noted that they would expect the developer to dual
track efforts over the term of the extension to find a buyer for the project, if they
are not able to secure the remaining investment.
The Committee recommended negotiation of an extension that requires
confirmation of full equity assembly no later than February 1, 2016 and
commencement of construction no later than April 24, 2016. If either deadline is
not met, the Committee recommends that the EDA repurchase the property under
the terms of the current Repurchase Agreement and market the property to third
parties.
IV. OTHER BUSINESS
There was no other business.
V. ADJOURNMENT
The meeting adjourned at 1:30 p.m.