HomeMy WebLinkAbout01.07.2002COUNCIL WORK SESSION
January 7, 2002
4:50 p.m.
Council Chambers
Members present: Mayor Rooff, Berry, Welper, Greenwood, Clark, Jordan, Hurley, Getty.
Moved by Jordan, seconded by Berry that the Agenda, as proposed, be approved. Ayes: Seven.
Motion carried.
The new development agreement with Main Street Waterloo for repayment of $250,000.00 for
stabilization and asbestos removal at the former Osco Building was reviewed. The loan
agreement for the development of property located at 210 through 218 East 4`' Street states that
the repayment will begin when the building is leased or sold, which it is now. Main Street
Waterloo proposes the following:
1. Cedar Skyline Corporation d.b.a. Main Street Waterloo agrees to begin repayment in
the amount of $250,000.00 at zero percent per annum to the city commencing July 1,
2002.
2. Repayment will be in the amount equal to one-half of the total rent received from the
tenant on the lower floor of the building for a period of five years.
3. Through a lease agreement, the real estate tax rebates on the upper floor of the
Regional Business Center will be assigned to Gilmor & Doyle Engineering firm for a
period of five years. It is understood the lower floor of the building is exempt from
taxes as a non-profit organization using the space for educational purposes.
4. After the first five years, Main Street Waterloo assigns tax rebates to the city, with the
total amount credited to repayment of the loan for stabilization and asbestos removal
in the Osco Building, now known as the Regional Business Center.
5. Main Street Waterloo may elect to accelerate their payments. In recognition of a
good faith effort to repay this loan in a timely manner, the city will match all
payments up to 50 percent of the total should the debt be repaid in less than fifteen
years.
6. The agreement is for five years, with annual reviews.
Terry Poe Buschkamp, Executive Director of Main Street Waterloo, stated that they currently
receive $600.00 per month from UNI Regional Business Center, and the city would receive one-
half of the rent or $300 per month for five years. After five years, the tax rebates currently
assigned to Gilmor & Doyle Engineering would be assigned to the city.
Councilperson Getty asked if the $300.00 per month payment received from Main Street
Waterloo will be put back in the Revolving Loan. Michelle Weidner, Chief Financial Officer,
responded that the money has been a part of the General Fund for quite a while. At one time the
funds were designated, but in 1999 the council approved a resolution that the funds would be
undesignated funds.
Don Temeyer, City Planner, stated that an agreement has been drafted and referred to the City
Attorney for review.
Moved by Getty, seconded by Hurley that the agreement with Main Street Waterloo for
repayment of $250,000 loan be referred to the City Attorney and Main Street Waterloo for
review and brought back to the council in two weeks. Ayes: Seven. Motion carried.
With no further business before the council, it was moved by Jordan, seconded by Getty that the
meeting be adjourned at 5:11 p.m. Ayes: Seven. Motion carried.
Nancy Eckert
City Clerk