08-15-06 WS BEFORE CCAugust 15, 2006
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MINUTES
CITY COUNCIL WORK SESSION -August 15, 2006
A work session of the Hopkins City Council was called to order by Mayor Gene
Maxwell at 6:37 p.m. on August 15, 2006, at the City Hall. Council Members Kristi
Halverson, Jay Thompson, and Cheryl Youakim were present. Council Member Bruce
Rowan was absent. City personnel present were City Manager Rick Getschow, Planning
and Economic Development Director Jim Kerrigan, and Housing and Development
Coordinator Kersten Elverum. Also present were Sid Inman of Ehlers & Associates and
Colleen Carey of The Cornerstone Group.
Mr. Kerrigan gave a brief introduction explaining that the purpose of the
discussion was to update the Council on various issues that have impacted the
Marketplace & Main project.
Ms. Carey, president of The Cornerstone Group, explained that three main factors
have slowed the progress on the project: rising interest rates, rising construction costs and
a downturn in the for-sale housing market. She shared sales information for Hopkins that
indicates a drop in sales and an increase of days on the market. She explained that these
factors have resulted in a financial structure that no longer works.
Ms. Carey said she has looked at other options for the site, including rental
housing, office and retail, and they all create a larger financial gap. Mr. Kerrigan
explained that the City initially was not going to provide a subsidy on this project but that
the HRA did agree to 25 years of TIF to assist the project.
Mr. Inman discussed possible options for additional City involvement to help
close the gap including a forgivable loan and participating as an equity partner. He
explained that the City would put in safeguards such as minimum sales prices, increased
pre-sale requirements and alook-back clause. Mr. Kerrigan emphasized that these
options increase the City's exposure and risk. Mr. Getschow said that the Mainstreet
projects are a priority and that the quality of the development should not be
compromised.
Ms. Youakim asked for a history of projects the City has assisted financially. Mr.
Kerrigan indicated that staff would work on compiling that information as well as
refining the assistance options that have been identified.
August 1 S, 2006
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On motion by Ms. Youakim and second by Ms. Halverson, the meeting adjourned
at 7:35 p.m. on a unanimous.
Respectfully submitted,
Kersten Elverum
A~1~~1~~~~1~:
Eugen J, well, Mayor
COUNCIL MEMBERS: