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09-06-05 WS (2)MINUTES CITY COUNCIL WORK SESSION -September 6, 2005 A work session of the Hopkins City Council was called to order by Mayor Gene Maxwell at 5:10 p.m. on September 6, 2005, at the City Hall. Council Members Brausen, Johnson, Rowan and Thompson were present. City personnel present were City Manager Rick Getschow, Economic Development Director Jim Kerrigan, and Housing & Development Coordinator Kersten Elverum. Also present were Colleen Carey and Karen Dubrosky, The Cornerstone Group, and Sid Inman, Ehlers & Associates. City Manager Evaluation The City Council discussed the six-month evaluation of the City Manager. Jim Brimeyer, Brimeyer and Associates, distributed and then discussed a summary of the evaluation which included a plan for items for the City Manager to work on or continue to work on over the next six months to a year. Consensus was to adjust the City Manager's salary to Step C, Range 13 based on the employment agreement with the City Manager following a satisfactory review. Future step increases shall follow the city personnel policy and shall also be approved by the City Council subject to a satisfactory review. The Cornerstone Group Project ® Ms. Elverum gave a brief introduction to the discussion of the redevelopment plans of the Hopkins Honda Body Shop and used car sales lot by The Cornerstone Group. Ms. Carey, president of The Cornerstone Group, outlined the three primary reasons why the project has been delayed. The reasons identified were increased construction costs, a change in the market, and unforeseen site conditions. She indicated that there is a significant financial gap in the project and that she will not spend additional money on construction drawings until it is known how the gap will be filled. Mr. Inman indicated that preliminary analysis shows a maximum TIF generation of $1.5 million over 25 years. Ms. Carey suggested that the City provide financing for the purchase of the land. Mr. Kerrigan indicated that staff would not support the request and the Council concurred that the City was not in a position to provide that form of assistance. Mr. Kerrigan outlined the reasons why The Luther Company should be motivated to facilitate the sale of the property. Commissioner Brausen suggested that the City Council might be effective with both Qwest and The Luther Company in getting them to make concessions in order to make the project feasible. Mr. Kerrigan asked about the status of the development agreement and it was decided that financial issues needed to be resolved prior to an agreement being executed. Commissioner Thompson moved, Commissioner Brausen seconded, to adjourn the work session. The motion was approved unanimously. The meeting was adjourned at 7:25 p.m. Respectfully submitted, • Kersten Elverum and Rick Getschow ATT ST: Eugene J. well, Mayor COUNCIL MEMBERS: