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City Council Minutes <br /> July 3, 2007 <br /> Page 2 of 10 <br /> ---------------------------- <br /> 5.1. Lonesome Cottage Business Park Proposal <br /> Those present representing Lonesome Cottage — Sheila Haverkamp and <br /> Elissa Rogers of BLADC and Brandon Andersen of Lonesome Cottage. <br /> Sheila Haverkamp updated the Council on the process that took place <br /> regarding Mr. Andersen's proposal to purchase four business park lots. <br /> Ms. Haverkamp presented the proposal to the Council. <br /> COUNCIL MEMBER ORASKOVICH MOVED TO ENTER INTO A <br /> CONCEPTUAL AGREEMENT WITH LONESOME COTTAGE FOR THE <br /> PURCHASE OF FOUR BUSINESS PARK LOTS BASED ON THE <br /> FOLLOWING CONDITIONS: <br /> 1. PURCHASE 4 BUSINESS PARK LOTS — LOTS 2,3,4,5, BLOCK 2 <br /> 2. OPTION ON LOT 1, BLOCK 2 FOR 3 YEARS AT $25,000 PER <br /> ACRE ----- IF LOT IS NOT PURCHASED IN 3 YEARS, A FIRST <br /> RIGHT OF REFUSAL ON LOT 1, BLOCK 2 FOR TWO YEARS AT <br /> MARKET RATE <br /> 3. PURCHASE PRICE OF $146,000 -- $21,000 PER ACRE <br /> `.. 4. $46,000 PAYMENT TO CITY IMMEDIATELY <br /> 5. CITY TO FINANCE $100,000 AT AN INTEREST RATE OF 5% <br /> 6. ANNUAL PAYMENTS OF $20,000 PLUS INTEREST TO THE CITY <br /> STARTING JANUARY 2, 2010 <br /> 7. COLLATERAL— PERSONAL AND CORPORATE GUARANTEE <br /> AND ASSIGNMENT OF THE TIF NOTE <br /> 8. $102,600 IN TAX INCREMENT FINANCING ON A PAY-AS-YOU-GO <br /> BASIS <br /> 9. WAC AND SAC WILL BE PAID BY THE DEVELOPER— HOWEVER <br /> IF THE CITY'S RATE STUDY SHOWS A REDUCTION IN THE <br /> CURRENT WAC AND SAC FEES A REFUND WILL BE GIVEN TO <br /> THE DEVELOPER BASED ON THE DIFFERENCE OF THE <br /> EXISTING RATES AND THE NEW RATES <br /> 10.PERMIT FEES WILL NOT EXCEED $1,000 (INCLUDES CUP FEE) <br /> 11.WILL APPLY FOR A CONDITIONAL USE PERMIT FOR OUTSIDE <br /> STORAGE. OUTSIDE STORAGE WILL BE SCREENED BY <br /> VEGETATION <br /> 12.A DEPOSIT OF $10,000 DUE UPON CONCEPTUAL AGREEMENT. <br /> IF THE DEPOSIT IS INADEQUATE, ADDITIONAL FUNDS WILL BE <br /> ESCROWED <br /> 13. THE CITY TO RECEIVE UP TO 10% OF THE TAX INCREMENT <br /> ALLOCATED TO THE CITY FOR ADMINISTRATIVE PURPOSES <br />