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Director Leininger spoke about the potential tax benefits of the property including the <br /> income tax generated and preserved by retaining Roundstone Insurance as one of the city's <br /> main employers. <br /> Mr. Sobczak briefly introduced Casto and North Point Realty. Mr. Sobczak provided a visual <br /> presentation of the proposed site plan highlighting historic preservation, the community <br /> plaza, the role of Roundstone and how the overall project will fit in with the existing <br /> streetscape. <br /> He discussed the current marketplace and financial challenges that are facing this project and <br /> similar projects including inflation and rising interest rates which are now causing the project <br /> costs to exceed projected revenues. Director Leininger remarked that the role of Ms. Nichols <br /> and Mr. Kalynchuk has been to verify the developer's claims and to collaborate on creative <br /> financial solutions to make the project a success. <br /> Mr. Kalynchuk of PMC explained that PMC has been working with the city since 2017 to <br /> help the city review the financials of the development and attested that the project is facing a <br /> true and real gap as result of current economic forces. <br /> Councilmember Bullock asked what the current financial gap portends for future projects. <br /> Mr. Kalynchuk explained that in northeast Ohio, it is common for developments to <br /> experience a gap due to lower rents and high construction costs, but that current market <br /> forces are increasing that gap. He remarked on the benefits of locking in costs and <br /> agreements in an environment of increasing interest rates. <br /> Ms. Nichols added that every development project will bring different benefits to the city. <br /> She encouraged the city to establish policy and parameters around the use of incentives to <br /> ensure that the expectation is not created that every project will receive subsidies. She <br /> referenced the unique nature of this project. <br /> Motion by President Litten, seconded by Vice President Kepple to enter executive session for <br /> the purpose of considering confidential information related to the marketing plans, specific <br /> business strategy, production techniques, trade secrets, or personal financial statements of an <br /> applicant for economic development assistance and to consider the sale of property and to <br /> include city staff, representatives of Casto, North Pointe Realty, and PMC; and directors in <br /> executive session. <br /> A roll call was conducted as follows: <br /> Yeas: Baker, Bullock, Kepple, Litten, Marx, Rader, Shachner <br /> Nays: none <br /> Motion passed. Lakewood City Council entered executive session at 6:37 p.m. <br /> 2 <br />