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HomeMy WebLinkAbout1987 10-07 EBFMt' ~l MINUTES OF THE OCTOBER 7, 1987 EARLE BROWN FARM COMMITTEE MEETING CALL TO ORDER The Earle Brown Farm Committee was called to order at 7:45 a.m. by Chairman Orn. ROLL CALL Dr. Duane Orn, Ron Christensen, Sylvia Kenney, Donald Peterson, Gil Engdahl, Bill Eldridge, Leone Howe, Mary Jane Gustafson and Warren Lindquist. Also present were City Manager Gerald Splinter, Director of Public Works Sy Knapp, HRA Coordinator Brad Hoffman, Program Supervisor Kathy Flesher, and Administrative Aid Patti Page. DESIGN/DEVELOPER TEAM Dr. Orn stated the subcommittee has met and interviewed Design/Developer teams and are ready to make a recommendation. The HRA Coordinator stated the subcommittee is recommending that Heskin Resources, Inc. in conjunction with Winsor Faricy Architects and McGough Construction Co. be used as the Design/Developer. He then introduced Ellen Higgins, president of Heskin Resources, Inc. who gave a brief review of her company's credentials and introduced the other people present today. She stated they have a brief presentation and then they will be glad to answer any questions which the commission might have. ■ Following the slide presentation there was a brief discussion regarding the project. It was noted the preliminary budget which ' is prepared for the project would equal the final cost of the project. It was also noted that a contingency is built into the preliminary budget for unanticipated expenditures. A brief discussion then ensued relative to the proposed use of the buildings. The HRA Coordinator stated ultimately the Committee will give the final decision on the use of the ' buildings. He added that the Design/Developer team will give the Committee some direction regarding this issue. Ms. Higgins briefly reviewed the worst and best features of the project. She noted the worst aspect of the project would be how to balance all the goals for the project. She stated the best aspect of the project is that this is a good size project for her group to work on. Dr. Orn stated it always appears that financial difficulties go hand in hand with historic renovation. Ms. Higgins stated that a ' number of historic renovations convert to specialty and retail uses. She noted these type of uses take a long lead time to ' become any of self sufficient. She stated at these type of uses proposed for this point there are not the project. She added that it does not seem newsworthy when other parts of historic 10-7-87 1 renovation projects, such as hotels, office uses and restaurants are more than self sufficient. Bill Eldridge inquired if this project would be at least a break- even project. It was noted it is the goal that this project would at least break even. It is anticipated that the project as a whole will be self sufficient even if one isolated section may , not be. There was a motion by Bill Eldridge and seconded by Don Peterson , to accept the recommendation of the interview team to accept Heskin Resources, Inc. as the Design/Developer team. The motion passed unanimously. APPROVAL OF MINUTES - JUNE 11. 1987 , There was a motion by Gil Engdahl and seconded by Bill Eldridge to approve the minutes of the June 11, 1987 Earle Brown Farm , Committee meeting as submitted. The motion passed unanimously. LEE MAXFIELD REPORT The HRA Coordinator stated that Lee Maxfield and Associates had been hired to review the Stable/Hippodrome and the three proposed uses. He stated that it is suggested a combination of all three uses be done but it must be decided which use should be the , central focus. He noted the closer the trade show issue was studied the more interest that was found. He stated the Stable/Hippodrome would get the majority of ' banquets for 500 or more people. He pointed out that a number of trade shows could be booked for the Stable/Hippodrome but it would difficult to get the anticipated income from these type of , uses. The HRA Coordinator stated that in the Lee Maxfield report the ' cost projections were for the entire project but the income projections were only for the Stable/Hippodrome. He added he has asked Heskin Resources to put together an operating budget based on their experience. He stated the needed income is for the , operation and maintenance of the farm and that the capital outlay items or construction costs would come from the tax increment district. Don Peterson inquired if the project is limited to the existing buildings for income generation. The HRA Coordinator stated a number of things limit the scope of this project such as parking, traffic trips in the area, etc. Bill Eldridge left the meeting at 9:15 a.m. ' The HRA Coordinator stated it would be possible to move or connect existing buildings but it would be difficult to construct ' new buildings. 10-7-87 2 1 The HRA Coordinator stated the committee would be meeting quite often in the near future. He added that the project should be started in late spring or e rly summer of 1988. He added there would be a close relationship between the tourism bureau, hotels and this facility. There was a motion by Mary Jane Gustafson and seconded by Don Peterson to go forward with the project as presented and to accept the initial assessment made by the Maxfield report pending a final recommendation at the next meeting. The motion passed unanimously. DEIL GUSTAFSON LEASE The HRA Coordinator stated there ha: regarding a tax issue which was not entered into the lease agreement fo7 of the lease agreement a tax issue Y feels he should not be responsible The HRA Coordinator stated this tax stated staff believes the issue wou7 recommended payment by the Economi added that over half of this money and the Tax Increment District. been a difference of opinion anticipated when the City/HRA the house. He noted because as surfaced and Mr. Gustafson for the payment of the tax. is approximately $14,000. He d have ended in qourt and has Development Authority. He will be returned to the City The HRA Coordinator stated the City has agreed to pay the tax but the lease agreement with Mr. Gustafson will be terminated. This means that Mr. Gustafson will be out of the house by October 12, 1987. He added that Mr. Gustafson will be allowed to store some items in the barn because this building is not needed at this time. OTHER BUSINESS Dr. Orn noted at the June 11, 1987 Committee meeting it has been suggested that a citizen or member of the Committee be included on the Design/Developer committee. He added that it was suggested that this be a paid position. He stated there would be no decision on this item today, but it would be discussed at the next meeting. A discussion then ensued relative to the proposed meeting schedule. It was decided the next meeting would be on Wednesday, October 21, 1987. ' ADJOURNMENT There was a to adj ourn Earle Brown 10-7-87 motion by Don Peterson and seconded by Sylvia Kenney the meeting. The motion passed unanimously. The Farm Committee meeting adjourned at 9:40 p.m.