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HomeMy WebLinkAbout09.23.1999September 23, 1999 The Council of the City of Waterloo, Iowa, met in Special Session at City Hall Council Chambers, Waterloo, Iowa, at 9:30 a.m., on Thursday, September 23, 1999. Mayor John R. Rooff in the Chair. Roll Call: Getty, Jordan, Krizek, Gronen, Anders. Absent: Murphy, Collier. 112805 - Jordan/Gronen that the Agenda, as proposed, for the Special Session on Thursday, September 23, 1999, at 9:30 a.m., be accepted and approved. Ayes: Five. Absent: Murphy, Collier. Motion carried. 112806 - Getty/Jordan that copies of the call for the Special Meeting on September 23, 1999, at 9:30 a.m., be received and placed on file. Ayes: Five. Absent: Murphy, Collier. Motion carried. DOCUMENTS 112807 - Mayor Rooff stated that at the council work session on September 20, 1999, the council asked Main Street Waterloo to provide an appraisal of the property located at 614 Lafayette Street. Chuck Orr, a member of Main Street Property Council, stated that he has received a letter from Valuation Services Inc. who performed an appraisal of the Iowa Business Machine property in 1996. The letter provides an opinion and views of the commercial real estate market and economic conditions in downtown Waterloo as of today. Valuation Services performed a brief inspection of the property and found the current condition substantially better than its condition at the time of the 1996 .inspection. Among the improvements are new air conditioning units and fire alarm system, a re -built boiler for the heating system and a portion of the roof has been repaired at a cost of $5,000.00, along with change in the interior floorplan. Mr. Orr presented the cost breakdown for the property, which included the 1996 appraised value of $112,000.00 and the added value improvements. Murine Collins -Williams, Acting Director of UNI Small Business Development Center, stated that they have been actively involved for two years. Ms. Collins - Williams commented that they provide consultant services to businesses. This service is free and they provide technical and financial support. Ms. Collins - Williams noted that they hope to expand their scope of services, which will include a Business Information Center. They will partner with SBI and offer the Business Information Center which will allow them to have a computer center. Ms. Collins -Williams stated that they hope to have ongoing training to allow them to better serve business entrepreneurs. They will provide a vertical office area and high quality mentoring services. Ms. Collins -Williams commented that UNI has made a commitment to Waterloo, and this is the next step. With this accelerator and Business Information Center, they will be able to offer something no other agency will be able to do. This will be a one stop shop, and they will be working closely with Main Street Waterloo and the Chamber of Commerce. Mr. Orr stated that this is an important part of why Main Street Waterloo approached Jim Higgins about purchasing the Iowa Business Machine property at 614 Lafayette Street. Councilperson Jordan stated that the cost breakdown includes $3,500.00 for a new air conditioner and asked if the air conditioner will remain with the property. Mr. Orr stated that Main Street agreed that the present owner could take the air conditioner because it is not necessary for Main Street's project. Mr. Orr stated that the $20,000.00 paint booth was installed because the specialty nature of the business requires a static free area, and it cannot be moved from the building. Councilperson Getty asked if Main Street plans to demolish the Iowa Business Machine property. Mr. Orr stated that Main Street is looking at all their alternatives, they could demolish just one-half of the building, create a facade or not demolish the building and create 30 parking spaces in back. Councilperson Getty asked if they could use the parking spaces in the East Park Avenue ramp. Mr. Orr stated that as part of the agreement with Gilmor and Doyle to rent the second floor of the former Osco building, they wanted parking close to the building for their staff and customers. Gilmor and Doyle has pledged to rent 30 of the parking stalls at $50.00 per month per stall. Mr. Orr stated that Main Street Waterloo would like to begin on the project immediately and would like to take possession of the Higgins property by July 1, 2000. Mr. Orr stated that Main Street Waterloo will do their best to help him relocate in the downtown. Mr. Orr noted that Jim Higgins has publicly stated that he would like to remain in the downtown. Mr. Orr stated that Mr. Higgins has a tenant in the building with a lease value of $21,200.00 over two years, and that Mr. Higgins will take care of the tenant. September 23, 1999 Page 2 DOCUMENTS CONTINUED Mayor Rooff noted that the boiler is new and could be salvaged. Mr. Orr commented that if only part of the building is demolished the boiler could be used. Jim Higgins stated that the boiler and air conditioner are highly efficient and could be moved. Councilperson Jordan stated that the building across from the Court House sold for $300,000.00, and that Main Street is looking at investing $350,000.00 and asked if 614 Lafayette Street is comparable to the building across from the Court House. Mr. Orr noted that Techline sold for $175,000.00, the building next door appraised for $150,000.00 and Sub City sold for $100,000.00, which is considerably smaller. Mr. Orr commented that Main Street Waterloo is committed to repaying the city the $250,000.00 economic development loan that was put into the former Osco building, and that $100,000.00 in tax rebates will be put into escrow for the city. Councilperson Getty stated that he is concerned with how long the building will sit and will it become another empty structure, and will Main Street ask the city to pay for demolition costs. Mr. Orr noted that demolition costs have been included in the money secured by the city. Councilperson Anders commended Main Street Waterloo and Dave Van Dee for working on this package. Councilperson Anders noted that it appears to be a very good deal, and that he feels it will be great for the downtown. Councilperson Anders stated that this project will add to the base of the downtown and spur further development. Councilperson Jordan stated that the project is presented to be a good deal and asked if Mr. Orr is saying that Main Street will not come back to the city. Mr. Orr stated that Main Street will work as hard as they can so that won't happen. David Roth stated that Main Street Waterloo may apply for a facade loan from the city to help with the landscaping. Councilperson Getty asked if businesses have been contacted to fix the back of the buildings. Mr. Orr commented that all the businesses in back of East 4th Street have plans to clean up by the back of their buildings. Councilperson Jordan stated that he supports the project now that there is a paper trail. Getty/Jordan that communication from Assistant City Planner transmitting Development Agreement with Main Street Waterloo d.b.a. Cedar Skyline Corporation to redevelop the Osco site generally located at 210, 212 and 214 East 4th Street, with minimum assessment of $300,000.00 until January 1, 2011 and tax rebates for ten years to be assigned to the City of Waterloo, be received, placed on file and "Resolution approving said agreement", be adopted and Mayor and City Clerk authorized to execute same. Ayes: Five. Absent: Murphy, Collier. Resolution adopted and upon approval by Mayor assigned No. 1999-659. 112808 - Jordan/Gronen that communication from Assistant City Planner transmitting a Loan Guarantee Agreement with Community National Bank in conjunction with the purchase and redevelopment of the Higgins site generally located at 614 Lafayette Street be received, placed on file and "Resolution approving said agreement", be adopted and Mayor authorized to execute same. Ayes: Five. Absent: Murphy, Collier. Resolution adopted and upon approval by Mayor assigned No. 1999-660. 112809 - Anders/Krizek that communication from Assistant City Planner transmitting release of first mortgage assigned to the Osco property generally located at 210, 212 and 214 East 4th Street and taking a second mortgage position behind the Economic Development Administration (EDA) be received, placed on file and "Resolution approving said release of first mortgage", be adopted. Ayes: Five. Absent: Murphy, Collier. Resolution adopted and upon approval by Mayor assigned No. 1999-661. 112810 - Gronen/Jordan that communication from Assistant City Planner transmitting request of Main Street Waterloo for authorization to acquire property located at 614 Lafayette Street from James and Nancy Higgins in the amount of $200,000.00 in conjunction with construction of up to 50 stalls parking facility to support the development of the Business Accelerator and second floor Osco Building redevelopment be received, placed on file and "Resolution approving said request" be adopted. Ayes: Five. Absent: Murphy, Collier. Resolution adoptE And upon approval by Mayor assi 'd No. 1999-662. September 23, 1999 Page 3 DOCUMENTS CONTINUED 112811 - Jordan/Anders that communication from Assistant City Planner transmitting request for authorization to proceed with condemnation proceedings for 614 Lafayette Street (James and Nancy Higgins) in conjunction with the Osco Building redevelopment he received, placed on file and "Resolution approving said request" be adopted. Ayes: Five. Absent: Murphy, Collier. Resolution adopted and upon approval by Mayor assigned No. 1999-663. ADJOURNMENT 112812 - Jordan/Gronen that the Council adjourn at 10:05 a.m. Ayes: Five. Absent: Murphy, Collier. Motion carried. Nancy Eckert City Clerk COUNCIL WORK SESSION September 23, 1999 9:00 a.m. Council Chambers Members present: Mayor Rooff, Getty, Jordan, Krizek, Gronen, Anders. Members absent: Murphy, Collier. Moved by Jordan, seconded by Krizek that the Agenda, as proposed, be approved. Ayes: Five. Absent: Murphy, Collier. Motion carried. Agenda items that have been placed on the Council Agenda for Monday, September 27, 1999 were reviewed with Department Heads who have items on the agenda.. With no further business before the council, it was moved by Getty, seconded by Jordan that the meeting be adjourned at 9:21 a.m. Ayes: Five. Absent: Murphy, Collier. Motion carried. Nancy Eckert City Clerk