2004-11-22MOUND CITY COUNCIL AND HRA JOINT MEETING
NOVEMBER 22, 2004
The City Council and the HRA met in joint special session on Monday, November 22,
2004, at 6:30 p.m. in the council chambers of city hall.
Members Present: Mayor/Chair Pat Meisel: Commissions/Councilmembers David
Osmek, Mark Hanus, and Bob Brown.
Members Absent: Peter Meyer.
Others Present: Kandis Hanson, Carlton Moore, Sarah Smith, Sid Inman, John Dean,
John Beise, Marc Kruger, John Seibert, Richard Bloomquist, Mike Specht.
1. Open Meeting
Mayor Meisel called the meeting to order at 6:30 p.m.
2. Discussion with Representatives of BFL2
BFL2 is the proposed developer for a hotel project consisting of a 74-room hotel,
restaurant, bar and banquet facility to be constructed on the west end of the Auditor's
Road portion of the downtown redevelopment district.
This meeting was requested by BFL2 to explore possible means to resolve the
approximate $2,000,000 gap between the cost of constructing the hotel complex and
the funding available for construction. A significant part of the gap was due to the need
to construct a parking structure to handle the approximately 230 vehicles that were
expected to frequent the hotel facility. The cost of the parking facility was estimated at
between $1.2 and $1.5 million. City staff and consultants had been working closely
with BFL2 and its consultants for several weeks in an unsuccessful attempt to find ways
to eliminate the gap.
It is now agreed upon by the City, the HRA, and BFL2, that there is no financially sound
basis on which to proceed with the hotel project.
Due to the receipt by the City of a letter dated November 12, 2004, stating BFL2 is
exercising its right to terminate the contract, no action by the HRA or City Council is
needed at this time.
3. Adjourn
MOTION by Hanus, seconded by Brown to adjourn at 8:15 p.m. All voted in favor.
Motion carried.
,~t~st: Bonnie Ritter, City Clerk
M~y~)dChair Pat Meisel