01-22-90 Development Comm MinutesCity Development Committee
January 22, 1990 5.00 PM City Hall/Conference Room
Attending: Chairman Noel Furlong; Committee members Jim Atkinson, Duane Larson
and Barbara Moses; Susan Moyer and Ross Plambeck of CDD; Mayor Hopkins, Fire
Chief Ted Waggener; Gary Whitman of 2nd Ave. W. Professional Building.
Second Avenue West Professional Building Request
Chairman Furlong opened the meeting and asked Susan to give the background and
update those present on this request, after which Mr. Whitman would have a chance to
discuss what the partnership had in mind and answer questions from the committee.
Susan gave the history of the original loan, $67,000 at 5% interest for 5 years and
remaining 10 years at current annual T Bill rate. She explained the partnership was
asking for two things; 1) ATIF loan in the amount of $130,000 to $140,000 to purchase
property adjoining their present property to eliminate blight and possibly use for
parking, and 2) the city to 'roll-over' their original loan at the present 5% for the
remaining 10 years.
Mr. Whitman explained that the partnership has invested $1.7 to $1.8 million in their
property, which is 100% leased for long term, and want very much to protect their
investment. The property they are interested in has been advertised for sale before and
they want to make sure the blight is cleaned up. They have no long range plans for the
property at this time, have considered possibly some commercial development in the
future, and if someone offered them a good price for the property in the future they
would want to sell. They want TIF funding to help them in land assemblage, which
would eliminate the blighted conditions. He stated that any assistance the city could
give in keeping the cost down on their current loan so they could clean up the proposed
area would be appreciated.
C. Furlong explained the process of committees this request must go through and
invited Mr. Whitman to stay if he would like while the committee discussed the request.
He also stated to those present that the request for a loan of TIF funds to remove blight
is certainly within the intent of 71F funding, however, since there is no long range plan
for this property and it could very well be resold in future, it would come under the
heading of speculation, which the city cannot get involved in at all. Mr. Whitman left at
at 5:20 PM.
After much discussion by committee, Jim Atkinson moved to have the CDD staff put the
request in the form of a proposal and present it to the TIF Committee for their
recommendation back to the CDC and on to the City Council for final approval.
Barbara Moses seconded, motion passed.
Committee then addressed the second part of the 2nd Ave. W. Professional Partnership
which is to have the city re -write their current loan at 5% interest for the remaining 10
years. This request need not go to TIF committee as it is strictly city business. After
discussion by committee, Jim Atkinson moved to respectfully decline the request to
renegotiate 2nd Ave. W. Professional Partnership's current loan. Duane Larson
seconded, motion passed.
Fire Department Service Catwalk
Ross reviewed the request for a catwalk in the fire department stating that $10,000 had
• been budgeted for this project. The cost estimate by Architects Design Group was for
$8,500 for the project and $2,500 for design and engineering work. The total cost comes
$1.000 over budget. There was discussion of other options, possibly contacting other
architects for cost estimates, or postponing other projects within the public buildings
line item until later. There is also the option of transferring funds from the
redevelopment fund line item, which would take council action. The committee
decided to ask Fire Chief Ted Waggener to go back to the architects and negotiate the
$2,500 design cost, or at least ask how they arrived at that figure and if it covers the
entire project. The committee will meet again on this when Chief Waggener has talked
to the architects.
Other Business
Chairman Furlong updated the committee on the Valley Bank proposal stating that it is
a dead issue unless they resubmit their request. The Tax Increment Finance Committee
did not recommend the request after reading City Attorney Neier's opinion.
Noel stated the Griffin Field project is on the back burner for now. There is still a
possibility of a project according to conversations with Ed Gallagher who has spoken to
Darryl Wilson of Glacier Park Company.
There being no further business, meeting adjourned at 6:30 PM.
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