02/26/1997 Meeting Minutes - Laserfiche WebLink

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Special Council Minutes of 2/26/97 Also, he has spoken to Pat Bennet, a loan officer with Star Bank, regarding two possible ~` scenarios for the ro osed ro ect. The first ossibilit would be for the cit to allow a i~ P P P j P Y Y lien to be placed against the property. The second possibility would be a leasehold improvement where the loan would be amortized over the 25 year life of the loan. The lease would be used as collateral. As to the cost of the project, the property will cost $300,000, which is the amount of the community block grant. The renovations will probably cost between $275,000 to $350,000 if private money is used. If federal money is used for the renovations, the cost will be between $400,000 and $500,000 because of the requirements of the federal bidding procedure and prevailing wage requirements. Mr. Smith said that he did not actually have a letter of credit from Star Bank, but Pat Bennet had assured him that by mid-March a solid financial package could be put together. He commented that Council's approval of the legislation is just one more step in the process of receiving the community block grant. If it is passed, the county will review it on its merit and competitiveness with projects from twenty-two other communities. He encouraged City Council to approve the proposal. Speaking about the environmental assessment report for the proposal, Mr. Smith said that the property owner had informed him that the property had been cleaned and all PCB's and asbestos had been removed. In closing, Mr. Smith reminded Council that the Center had been involved with community block grants in the past, noting the property on Butternut Ridge Road was acquired and improved through such grants. Horizons has met and exceeded all the requirements of the community block grant in the past. He also assured Council that, if this proposal were to be approved and funded, that Horizons would meet all the requirements to provide for services to 51% of lower/moderate income families and would meet all employment requirements. Mr. O'Grady moved for adoption of Ordinance No. 97-18; the motion was seconded by Mr. Lind. Roll call: O'Grady: No. Mr. O'Grady commended Horizons for trying to put together a very ambitious plan in a very short period of time. He also commended Mr. Copeland for the outstanding job he has done. However, his support for this project has been predicated upon the idea that Horizons would be able to come forward and show sources of funding to cover all the costs associated with the project in excess of the $300,000 received from the grant. To date, Horizons has not been able to provide that documentation. Mr. O'Grady stated that his responsibility as a Council Member is to represent the people and to protect their interests. With that responsibility in mind, he could not in good conscience vote to approve the project as this time. Roll call continued: Lind: No. Mr. Lind said that he felt the proposal was a very worthwhile project. However, because all the monetary requirements are not in place, it is difficult for him as a Council Member to put the city on the line for the possibility of having to pay back $300,000 and also lose the possibility of funding for other projects. Roll call continued: McKay: No. Mr. McKay commented that at one time the city had been in a similar position that had not worked out well and the city was forced to sell the property. That situation caused us to be placed in a bad light with the county, and he would not like to have a repeat of that situation. Roll call continued: Limpert: No. Mr. Limpert said that the project would be a good thing for North Olmsted; but, at this point in time, there are too many unanswered questions. He suggested that Horizons could get their financing 2