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HomeMy WebLinkAboutMinutes-09/05/1996CITY COUNCIL WORK SESSION September 5, 1996 4:00 p.m. Large Conference Room Members present: Mayor Rooff, Jordan, Mollenhoff, Anders, Getty, Collier. Members absent: Murphy, Krizek Moved by Jordan, seconded by Mollenhoff that the Agenda, as proposed, be approved. Ayes: Four. Absent: Murphy, Kirzek, Collier. Motion carried. Agenda items for the council meeting to be held on Monday, September 9, 1996, were reviewed and discussed with representatives from departments that have items on the agenda. Collier now present at 4:25 p.m. With no further business before the council, it was moved by Getty, seconded by Jordan that the meeting be adjourned at 4:30 p.m. Ayes: Five. Absent: Murphy, Krizek. Motion carried. Susan Fangman City Clerk CITY COUNCIL WORK SESSION September 5, 1996 3:30 p.m. Large Conference Room Members present: Mayor Rooff, Jordan, Anders, Getty, Mollenhoff. Members absent: Krizek, Murphy, Collier. Moved by Jordan, seconded by Mollenhoff to approve the agenda as proposed. Ayes: Four. Absent: Krizek, Murphy, Collier. Motion carried. Bill Guthrey, Koll Real Estate Group, summarized the work done to date. The project was named Mid -Port America to help the connote the way the project is hoped to be developed. A logo was also developed for marketing materials. The name and logo were critical to the ability to have quality marketing materials. The master plan was also fine tuned to make it more marketable and layout considerations for lot uses. The plan is based on Phase I of 250 acres with the focus the airport with a boulevard entrance. Looked at the potential uses, small offices, distribution, technology. The other half of Phase I will be bulk distribution, manufacturing sites with rail access. There are current discussions with a 30 acre user having rail access by the armory. Walt Mountford, Koll Real Estate Group, commented that after being on the project for more than six months they are more bullish on the project and contrary to what is reported in the paper feels they are doing a real solid job on the project. They have indicated to the AADA that there might be a way to modify the contract and help them to realize all the goals. Koll wouldn't have done that unless they felt that there will be success in the project. There were leaps of faith by both parties at the beginning but things are more comfortable for Koll now. There are things on the horizon that could really cause this to take off. Walt introduced Bill Guthrey as the new project manager for MidPort America. Guthrey explained the obvious advantages to the site, such as rail and air access, fiber optics, and trained labor forces. The marketing brochure is focusing on those right attributes, brochures were mailed to Koll contacts, Cedar Valley Economic mail contacts, Iowa Department of Economic Development contacts and top brokers in the state. Brokers were added to the mailing list because as a broker they are aware that approximately seventy percent of real estate transactions are through a broker. Mayor Rooff stated that there have been concerns raised about the amount of progress being made. Rooff's feeling is that Koll is treating MidPort as one of Koll's inventories and they will be attempting to match it up with an appropriate purchaser. Mountford agreed that MidPort has developed to point where it has become a viable development project to be promoted. Mayor Rooff asked Koll to update the council on the state of the negotiations with the AADA regarding their current contract. Mountford stated that for a number of reasons, including Koll's increased level of comfort with the development, it would be advantage to taking the focus off of the financial elements of the project and refocus on the possibilities. After six months Koll believes that success will be forthcoming and is willing to modify the contract to reflect that level of comfort. Koll is willing to forego some fees to get a long term opportunity for the project. Mayor Rooff asked if the AADA and Koll had found a way to overcome the concerns about productivity through the release of information. Mountford explained that Koll has agreed to share privileged information on leads and prospects with one member of the committee as requested by the AADA. Chaiiperson Eric Johnson has agreed to be that confidential representative. Councilperson Anders assured the council that the AADA is in full support of Eric Johnson's representation. Council Work Session September 5, 1996 Page 2 Councilperson Mollenhoff stated that he didn't have any expectations for instant gratification and feels success will take more than the proposed one year timeline. Getty expressed his hope that we would see positive results within the next six months or he would be hard pressed to extend the Koll contract for more than one year. Anders offered to find answers for any of the council regarding questions that may arise regarding the airport development. Councilperson Jordan asked if Koll had considered a spec building on the site. Guthrey responded that Koll has discussed it because in development it is easier to sell plats with buildings close by. There is some consideration and talks have been held with MidAmerican Energy on available funds for spec buildings. Moved by Mollenhoff, seconded by Anders that communication from City Clerk transmitting a Loan Agreement with the Ai/port Area Development Authority for a loan in the amount of $150,000, at an annual interest rate of 3 percent per annum for the purpose of partially funding a marketing agreement with KREG Operating Company, as approved by the Airport Area Development Authority, be received, placed on file and approved. Ayes: Four. Absent: Krizek, Murphy, Collier. Motion carried. Moved by Mollenhoff, seconded by Anders that communication from City Clerk transmitting a Loan Agreement with the Airport Area Development Authority and the City of Cedar Falls for a loan in the amount of $10,000, at an annual interest rate of 3 percent per annum for the purpose of partially funding a marketing agreement with KREG Operating Company, as approved by the Airport Area Development Authority, be received, placed on file and approved. Ayes: Four. Absent: Krizek, Murphy, Collier. Motion carried. Moved by Mollenhoff, seconded by Anders that communication from City Clerk transmitting a Loan Agreement with Airport Area Development Authority and Basic Materials Corp. for a loan in the amount of $100,000, at an annual interest rate of 3 percent per annum for the purpose of partially funding a marketing agreement with KREG Operating Company, as approved by the Airport Area Development Authority, be received, placed on file and approved. Ayes: Four. Absent: Krizek, Murphy, Collier. Motion carried. With no further business before the council, it was moved by Mollenhoff, seconded by Jordan that the meeting be adjourned at 4:10 p.m. Ayes: Four. Absent: Krizek, Murphy, Collier. Motion carried. Susan Fangman City Clerk