07-10-2017 Council Packet - Laserfiche WebLink

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MINUTES OF THE ORONO CITY COUNCIL WORK SESSION Monday, June 26, 2017 5:00 P.M. PRESENT: Mayor Dennis Walsh, Council Members Richard Crosby II, Wendy Dankey, Aaron Printup. Representing Staff were Interim City Administrator Doug Reeder, Public Works Director/City Engineer, Adam Edwards, and Jeremy Barnhart, Community Development Director. Mayor Walsh called the work session to order at 5:00 p.m. 1. Orono Woods Contract Interim City Administrator Doug Reeder explained the Orono Woods Apartment Development Agreement and history. Reeder also mentioned the land lease was for 99 years and is only for the ground beneath; when the TIF district goes away the affordability and covenants could go away as well. There was discussion regarding the new proposal to eliminate the lease and extending the Tax Increment Financing (TIF) from 2024 to 2042. Even though the Ground Lease would be terminated, the current covenants and restrictions that were previously contained in the lease would remain until 2042. Caitlin Goff, Lang -Nelson Associated Inc. noted that if the City released the land, Orono Woods will remain as senior housing. The current ground lease does not allow the buyer to get the financing needed to purchase the property. Mayor Walsh stated he would like the affordability for residents to remain throughout the extension until 2042, and would also like to make sure legal and processing fees were still anticipated to be covered as well. The Orono Woods Representatives assured the Council that the seller has already deposited a good faith agreement of $5,000 towards the processing fees. Council Member Crosby noted he understands that it is important to the community and Orono residents and that it makes sense to proceed. Mayor Walsh stated he would like some amendments made to the contract to include the affordability piece and would like it to be brought back to council for final discussion and approval. 2. City Council Human Resources • Reeder mentioned the Finance Director had been on leave since the beginning of May and is not expected to return before mid-July. Reeder asked if the City should wait for the Finance Director's return or hire a consultant, Abdo, Eick, and Meyers CPA's (AEMCPA) to help coach the Assistant Finance Director prepare needed documents for the City temporarily.