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