HomeMy WebLinkAbout12.17.2001COUNCIL WORK SESSION
December 17, 2001
4:30 p.m.
Council Chambers
Members present: Mayor Rooff, Anders, Jordan, Krizek, Murphy, Gronen, Getty, Berry.
Moved by Krizek, seconded by Gronen 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 4th 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 one year renewals.
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 Murphy asked if the money the city receives from Main Street Waterloo will be
put in the General Fund or go to Community Development. Michelle Weidner, Chief Financial
Officer, responded that the money has always been a part of the General Fund, that is where it
originally came from and it will go back to the General Fund.
Councilperson Jordan requested that the City Attorney review the agreement prior to council
approval.
Moved by Getty, seconded by Berry that the agreement with Main Street Waterloo for repayment
of $250,000 loan be placed on the council agenda of January 7, 2002. Ayes: Seven. Motion
carried.
With no further business before the council, it was moved by Krizek, seconded by Jordan that the
meeting be adjourned at 4:58 p.m. Ayes: Seven. Motion carried.
Nancy Eckert
City Clerk