good evening and welcome to the Eda meeting it is Monday October 14th at 7 p.m. I'm calling the meeting to order looking for a motion to adopt this evening's agenda so moved second move by Warden second by Beck any further discussion or question hearing none all in favor signify by saying I I oos same sign the eyes have it 6 to zero all right first item of business is to approve our minutes from April 8th 2024 well why don't I make the motion to approve the minutes that are nearly six months old thank you commissioner Fay oh second moved by faay second by commissioner Beck for approval of the minutes all in favor signify I had a question about it okay go ahead council member DeLuca um the minutes don't seem to be as clear as I'd like them to be necessarily if you look at the first um the the section where it says who's there it says members present were and it lists us it doesn't say the mayor was there now you could imply that the fact that she called the meeting to order but it seems a little bit like somebody would look at that and say well apparently Julie wasn't present she was just the way it's written okay any other comments or questions regarding the minutes all in favor of approving the minutes please signify by saying I I I post same sign minutes are approved 6 to zero um new business this evening is City Planning updates and I'm going to turn that over to staff thank you honorable chair and uh Commissioners the um we just did a high level St uh high level overview of a couple projects coming down that are pertinent to kind of new development in the city or Redevelopment areas just so you uh all were aware of um some of the projects kind of a small project update um so U one of the projects that's coming in uh that has submitted an application and is in the process of being reviewed um and likely going to the Planning Commission November is 1741 Bud Street uh that was a project that we had seen about a year and a half ago now as a concept level plan for uh approximately a 100 units of um uh multif family housing in two buildings so two different phases so what came forward to the city is uh phase one plan which would consist of 54 units market rate uh housing um you can you can see I just threw in a site plan so you can see Bud Street on the right hand side um this would have a proposal for two buildings phase one is the first building the easterly Building 54 units phase two would be the Westerly building 42 units uh three stories underground parking um and then uh surface parking as well in the two phases um so this project we've talked about with the developer for some time I was anticipating it actually maybe six months after they came forward with a concept plan they were waiting on um interest rates like everybody else has been talking about and so now they're at a point where they want to uh move forward for a 25 construction is what they'd be looking at on that phase one so uh that would be our First marget Rate housing development in the city in 40 some years um the other project I think that's interesting um to the city this is a uh proposed minor subdivision to split 5370 Highway 12 into two properties um as you know 5370 is a big Warehouse commercial building on Highway 12 it was where Proto or the Plastics Proto mold uh uh what was the Roto Roto protoo protolabs Ando but Roto is um you know they've they still have some space in this building they don't own that building they bought a new site um just a little bit further west on 12 but they uh the owner of this project uh last year came through and split the building into three uh properties essentially um and or three units and so now they want to split off the 6 and A2 acres to East um and so that would be done just through minor subdivision what um what you don't see and what's being talked about is there is a purchase agreement on that 6 and A2 Acres with for uh them to acquire that site and potentially build a an approximately 60,000 square foot facility so um we do not have an application on that but they did say they have a purchase agreement now at this point on that property that public information now I don't I don't know how public it's at our meeting and I'm just I'm telling you what I know because I was told there's a purchase agreement which to me makes it well purch agement so yeah yeah so um but I they are anticipating and I have U met with them now on a couple of occasions and they are anticipating that if this subdivision gets approved um that they would bring back an application for site plan and their whole Building Development my understanding is they'd like to Fast Track This is that possible or is it unreasonable no so this is going to go in November it was they wanted it to go in October but um mindat has something to say about it mindat did review it mot gets 60 days to review um they reviewed it in about 28 days or something or 26 days and so that was fast but um that didn't give us enough time then to respond to what they came out with prior to the Planning Commission and I don't want to take an incomplete I didn't want to take an item that wasn't fully cooked so now we've gone back with comments they've provided a response to those comments I think we're ready to go for the November meeting um and I think that's what we can do to do that so um so th those are two of the projects as you've seen the the Baker park Villas are still going on there's been a lot of work done on those and um they're getting ready to go vertical on the on those um with the public improvements being installed um so that project is also um out there and then um we do have and there's nothing public or not public but we do have a potential developer at the Gateway um site that I'm hoping um that would be a commercial use I'm hoping that comes through in the next um in the next probably 90 days which would be a really exciting project for the city if we get it so that's a little bit about what we go we've got going on um well so that's the next one I can I can get to the downtown th those are other ones the only other thing I'd mention that Jacob and I feel calls on um and we have a lot of people kicking tires on the uh former wank building property that seems to have been picking up some steam again and we get a lot of questions on that um and so I I think we're going to keep getting some ideas on that um the majority of the people who have looked at that want to do Residential really at the wank property yeah what's its own is industrial it's not mixed use it's industrial but you know what people do is they drive down there they go down the road they look at the trees they look at the Wetland and they go wow this a really beautiful site and that wank building has some it's quirky it's and and an office isn't hot right now as you all know it's kind of faded right um and so I think a lot of people have looked at that site as a really pretty site on some wetlands and they think about it more as a Comm uh as a residential site versus a commercial site um so what uh on the uh subdivision that you SCH for y what can you tell me uh they've got the hatched area proposed uh shared access agreement what what what can you tell me about so minda denied a second access point okay and the city was also supportive of that we do not think that having three driveways within 150 ft of each other uh helps Andor uh is consistent with our safety um desires on the highway 12 Corridor and so M that denied that so now we're talking about having a a shared Ingress egress that would serve the East track and the West track so then to get over to the east track then a Culver would have to go in that new uh correct okay and it's a pretty shallow Basin but what we're talking about is having this kind of shared entrance that comes in and then it goes over and then this site can do what they want and it we really want to have that go over prior to getting to this loading dock here and or conflicting with any possible kind of crossover truck traffic and I think it's a I think it's reasonable to say we could get a really nice entrance in there that would serve both properties well okay the manufacturing facility in the West track is over 100,000 square ft 130 the the expected or proposed addition to the east track you said would be 60,000 um any potential for anything outside of that or would that be in the new developer hands to to do that once the once the property gets transferred then yeah I mean so yeah so the the kind of real high level sketches I've seen the East track with a 60,000 foot building and the associated parking is used fix it fills it up yeah oh okay so you've seen a concept sketch I have okay nothing submitted I understand don't have anything on my I just I'm looking there's 200 square feet 200,000 Square ft of land there greater than that and a I I just you know it's 60,000 is big and then when you put parking with that it's big and it takes up a footprint and then you got a little more storm water that they need and you know they've got to expand on that so once once you start to lay that out it really does use that up pretty well push him to attach a chilies to the back end of it I I honestly believe that our Gateway with our with the the maybe user is would would bring some other users because they're pretty they bring business I know yeah but I I honestly think this could be a really great use for this site I I think norshore really wants to stay here and this could be a a good win-win for the city because access is hard and ironically I mean you think about a 60,000 square foot but the transportation needs or the trips generated actually isn't significant as it's not as significant as maybe a a retail or a uh some sort of office or commercial use um it it will bring a lot of traffic down Highway 12 yeah 100% but but it's um it's it's their times are pretty specific they're off they're off peak generally or maybe only overlap with one Peak not multiple Peaks and um so there are there is something to that butd and one other question on the bud Apartments yeah um the concept elevations is that representative I like I like the use of the dissimilar materials and the horizontal and vertical I mean is that is that representative of what they're thinking this is specific it is okay they've got detailed plans yeah so this is this is what they're proposing these aren't architectural like renderings anymore last time you went up to monel yeah the new building in monel G yeah yeah all right thank you for that update any other questions um regarding the general planning updates all right let's move on to a downtown property discussion okay downtown Redevelopment so as Eda knows we entered into a purchase agreement with Maple plane uh Maple Development LLC on January 9th 2024 that was to purchase and redevelop the five properties owned by the city along with 5210 Main Street uh the Redevelopment con considered a 100 unit makes use building with 8,700 square ft of first floor retail the purchase agreement allow the developer an initial due diligence period that ran through September 124 and then they had the option of extending that through December 31st they did not pursue an extension and um they have not contacted the the city we've reached out to them a number of times over the last 60 days to try to engage if they were going to pursue the development we have not gotten any correspondence no response to correspondence and so in accordance with the purchase agreement we notified them actually last week um and we had to do it through certified mail that they are in default of the agreement and they get by law 30 days to cure that so they get 30 days after the expiration and then they get 30 days to cure by notice and so we're um now looking at a November 8th cancellation essentially so if they don't cure and the Cure is buying um is buying the property and they have to have approvals and everything else so it's not going to happen um the city will retain the escrow money it's not significant spent yet well no we have two remember we have two escrow piles so we had an escrow that just was for the purchase agreement that was 10,000 and then we had a $5,000 escrow for fees and no um I don't know that you're spent 100% on that yet but either way you're going to get the 10,000 and you still have the escro agreement for the 5,000 um not what we wanted I mean we obviously wanted development right um now so with that I just want to have a one I want to bring to e let you know where we are because we're now going to you know be 20 some days away from having that property back um and I just want to have a conversation with Eda or Jacob and I did to talk about are we still aligned with what that vision is for that property I also I also want to let you know that we have met um and have talked to other developers who are somewhat waiting to see if that purchase agreement fell through and are interested in pursuing a very similar project or the project on this property um you want to just flip to that little concept that we had so this this was the most recent concept that was attached to the purchase agreement that had a um you know kind of multi- level building five stories on Maple four stories on the corner three stories on Maine uh underground parking it also had first floor parking on Maple remember that we were going to kind of hide with Building architecture to make it look like a Main Street front and then we had an 8700 square foot retail uh area out of all the sketches out of the all the concepts I think we've seen I like this the most because I think it gives the most uh credibility to a potential retail use because it kind of creates a pseudo Main Street SL Suburban retail front because you've got this highway 12 Frontage on the corner there which kind of gives I think it gives high level visibility but it also gives more of a traditional retail Frontage versus just having like a Main Street front where you have no off street parking and it and it's really Urban um so I like this I do think we have two to three developers who are waiting to see what happens with this property and have expressed interest in exploring kind of a similar Redevelopment opportunity um we've shared all of our marketing materials we've shared Tiff analysis that we've done um on this and um I mean we have all that generated so it's really we' shared all our deal points you know and I think that's that's what's there but I just wanted to come back to Eda say here's where we are what do you think get some thoughts answer questions or have a discussion Mark why did we wait four to five weeks Beyond September one before we did something so really we waited nine days that and it was more so just drafting the letter making sure we had no other correspond how do you get nine days when they diligence so the September 1 so the law gives them 30 days following the end of the the um purchase agreement to cure it and then after the 30 we have to certify a expiration of the purch agreement so in reality Mike we only we're we're about eight or nine days difference we were going to do it right on October one but I was just wondering that help we had a conversation on October 1 and then our attorneys the one who you know Scott drafted and then ultimately filed the letter and served them with that so so yeah it's it's uh we're a couple days past what I'm not worried about a few days yeah a month I was worried no we wouldn't have let it we'd been talking about this for three months and then two months we said what's our process Scott gave Jacob and I a quick little uh summary of where kind of our our break points were our our end points and then we followed through on those so you literally got got crickets from them I have tried to reach out to them probably a dozen times through email and voicemail to my contacts and I've gotten nothing zero last correspondence I had was in August and it was I'm gonna I'm I'm out of town but when I get back I'm going to call you and then meet this in Disguise what what we've heard is they they have or they had actively tried to flip their purchase agreement so what they were trying to do was acquire they had a purchase agreement on the 5210 they had our purchase agreement they put together the concept plans and they were trying to flip that and make some money on it by by saying hey look we've got a package we've got a tiff we've got a deal here's what it looks like you give us X and we'll flip that deal and a sign which they could have done honestly it's it's not unheard of but that was I think really where they were looking not we're doing it ourselves one question that I excuse me one question that I have you know they have the 5210 purchase agreement which I'm sure is probably going to also fall through yeah um the market rate um of that property it's 82432 that's market value market value 5210 yeah um the sorry 83,000 the assessments that we are putting on the property are going to Total $82,400 70 would it be worth us approaching Miss Vorhees and say we will wipe this you know forgive this in in L of exchange of the property basically giving us the property because then we control the entire thing there isn't a portion of that that is not controlled by the city that the developer then has to work with another party I take it she hasn't been in to pay that correct and all of that's been assessed already or still have to get certified in the next couple weeks yeah the 36,000 gets certified building down and restoration and everything and and legal fees and planning fees and stuff what bucket of money did that $83,000 come out of Jacob I me did it come out of money or did it come out of I no it came out of the general fund general fund yeah but we're able to Levy that back right or assess her back right and get reimbursed for it or offer her in exchange for the assess I mean doesn't hurt to ask but I wanted to see feel that out I just think there's a benefit to the city owning the entire property that we're trying to get a developer interested in the other piece of property off of the tax markets either I don't think she's gonna give you that but I do think you should offer that I mean it's uh what what what do you have any idea of what her purchase agreement was worth I mean is it I heard it I heard it was 300,000 okay but I never saw it nobody furnished it nobody tell me the exact that's what I heard I could be totally north of quarter million so it was yeah I think there'd be value in that and it could give us some options and some flexibility you know as as the Eda and in working with developers it would be another piece another barrier removed remember we bought we bought the corner we bought the mot property remember we paid $20,000 for those little slivers of land yeah it would it make it one complete piece I think it'd be more viable for a project and for a developer well she's also about to be assessed for next year's not only that amount but her taxes which she hasn't been historically paying either so all of a sudden what she owes us is probably going to go up are you saying she's in her rears on her taxes she could be has she been paying those her bank may make her pay those see I mean the downside to assuming the property now is you're taking a a taxable Market piece off the rolls I can't that no they have not been paid for this year she owes us 60,000 on that or ow the county tax penalty no she has not paid so so how far is she in rear did I I couldn't read that I'm sorry a lot yeah you can see is there consent that we want staff to extend that offer well but is that really the offer for only the the valuation that she not that she currently owes but what she's going to be assessed shortly because if she comes back and says in addition to that I want the tax liability that I'm in debt for to be paid off as well now that liability because there's what there's School District involved in that there's a county involved in that and there a city involved in that and for we're not a b taxes what's that for the past two taxes right yeah that's true so you know I forget what was it $50,000 or okay 50 and so all of a sudden it's like you know we've got uh we've got uh she's she's going to want $83,000 waved or excuse me 83 and $125,000 waved $135,000 waved we're not a bank right she owes 59,000 right now that's plus what you're about assessed 83 so 66 36 more 3 yeah was a total so it be it would be 60 plus 36 it be 96 at the end of that at the end of this year or for next year I guess payable okay how much is that 86,000 roughly is city responsibility and how much of that is County and school and Regional Rail Authority and everything else yeah I can break it down it's um enough you don't want to fool of the job yeah cuz you know she's back taxes previous years that's got to be paid then too be liable and the penalties and everything else and also now we're now it's costing us taxes how often does Hanan County do tax fores it's going to take more than one year of delinquent before they would do it well I some counties are three and some counties are five out of the 59,000 50,8 44 is special assessment so $9,000 and a third of that is yours a third of it is school and a third so it's not it's not that much it's not that much yeah we do have money in the Eda SP of el now it's intriguing but she's in the rears I think she's in the rears two years I I can't see that they won't show me that but she's at 59,000 assessment's 50,000 and her annual taxes are only 5,000 and that was for this year last year they were less right because it's based on 275 two years she hasn't paid so I think they've been it yeah and there's a penalty on there so I think she hasn't paid for two including now she's going to get another bill tomorrow there's a bill tomorrow do um that's part of that right that's the 27 or whatever she's got that when she doesn't pay that then she's going to be penalty on that oh right so you you could be an ,000 yeah the the um again I don't I don't think she takes the offer but I think the offer is a good offer because if you had control I mean she's got to know what she owes and what she's in her rears for and the penalties that's crewing she's got to be she's got to have an exit plan I think the exit plan was purchase agreement and developer yeah she sells it for 300 pays the 100 and she Nets two right or she sells it for 250 now because the three didn't work and she Nets 150 at least she's out because here's the other issue though that we don't see is I think there's debt on that building oh because I think we saw that in a pro fora at one point that there was a debt or or actually I think it was when we did the um when we leved that or made it an unsafe building at one point I think we knew there was a something I think it's 100 and something Mortgage Balance o she has a mortgage on it co when Quin lean was dealing with her there was a mortgage this keeps getting more and more unappealing yep well yeah you you couldn't yeah buy she'd have to clear the mortgage yeah if she has one I we don't know that I don't know that any longer I don't know what it is but I thought that counts right well you'll you'll have a by October 15th tomorrow you'll know exactly what your liabilities are outside of a potential mortgage right why wouldn't we approach it with that I already said I'm in favor okay but I'm I'm willing to hear others perspectives I'd be be willing to negotiate some sort of deal like that I think if if the price is right I think it makes sense again looking at pulling it up here it looks like it's the total taxes payable 24 were 5587 and then 83,000 is what's the uh currently shown for the payable 25 so that gets in the again verifying what that total tax liability is um but then yeah if she's got uh financing on that that needs to clear too that uh you know that that quick gets it up to that 250300 number that I don't know that we want to be the ones on the hook and and holding that again at least now we're continuing to acrw tax base on it um versus us taking ownership paying everything off and then uh uh removing it from the pool at least it's it's an outstanding liability until it turns into a tax forfeited property um but I think if if the numbers work out and we can get it for a a reasonable market value I think it absolutely speeds up getting a deal done on this property as long as it's for the right price and we're not uh eating all the liability on there I agree what he said yeah so that's a consensus then and I wouldn't call it a consensus please because I don't necessarily agree with that I understand you don't that's why I said consensus not a consensus in what would you like to call it well there's a decision by the group but it's not a consensus Julie by definition well the majority of the group feels that that if it's can be done within a reasonable numbers so we'll have to defer to staff to get the accurate and actual numbers not the hypotheticals that we're just looking at right and the mortgage is off the table if there is one if there's a if there's a mortgage it's not even a conversation that's a nonstarter we will uh get some further information on that and what that looks like and have that for a December Eda meeting okay anything else regarding downtown um other business from anyone I know a question I continue to get a lot that I think I know the answer to but since we're here we'll put it on camera there's been lots of discussion and phone calls about the big concrete building going up across from the fire hall um with nutrine and what is that going to be so so nutrine does vitamin supplements um they they've been around for a long time in made plane they needed an expansion of their warehouse because they currently uh store materials in multiple sites not just there and so they wanted to do an uh refresh of that building and with that um bring all of their business into one entity so they um ended all the leases with all their tenants and are taking back over the entirety of that building they got approval for a warehouse expansion uh and a full kind of frontal facade Redo for that building um so that concrete is just the tip up that's not the finish at this point um and then they they're going to you know pull that all together in a in a kind of rehab of that front facade and then landscaping and everything like that so that is what they're doing there it is in uh it's it does meet what we approved I mean that's what they're building so and the parking lot will be full of employees yeah sounds good we bank at our banks and eat at our restaurants let's hope yeah well thank you yeah for that update that's what I've been telling people so I'm like it's not going to stay concrete again it's all newr time now all right any other business come before for us this evening with that then looking for a motion to adjourn so moved byon second By Buck all in favor hi right um the meeting's adjourned at 7:36 so you said we're going to come back in December so no Eda in November at this time then uh