INTENT TO LEASE CITY OFFICE SPACE
IN A VICTORIA BUILDING NOT YET CONSTRUCTED
Councilmembers authorized a letter of intent with Old Main Street LLC for the City of Victoria to lease space from Matt Crowe in a new building proposed for construction in downtown Victoria. 
The site is located between the Notermann Building and the Post Office.  It is currently occupied by the Ruth Johnson residence and the old cafe building.
Increased and improved municipal office space has been needed for some time, according to staff and councilmembers.  The letter of intent speaks of a three-year lease plus one option year plus one more year for construction.
The old cafe is currently owned by the City of Victoria.  City Administrator Dave Urbia has indicated an acquisition price of $140,000.  There are many other details in the letter of intent.
Stated Administrator Urbia, "We are not looking to approve a lease but a letter of intent."
Stated Mayor Jerry Bohn, "The parking issue has to be resolved, but this gives Mr. Crowe confidence to move forward."
Stated Matt Crowe in response to a question about a drawing of his proposed three-story building, "Initially it was going to be a two-story building, but it's very difficult for me to make any money at all on a two-story.  My Notermann Building is 28 feet.  This [new] building would be 7 feet taller at 35 feet.  These drawings could give the perception of what's coming to Victoria."  City ordinance limits the height of buildings in downtown Victoria to 35 feet.

PLANS FOR NEW DOWNTOWN VICTORIA
PRELIMINARY DEVELOPER'S AGREEMENT SIGNED
Council voted unanimously to final-ize and execute a Preliminary Develop-ment Agreement with Matt Crowe and CEI Venture Inc. for the New Downtown Project, so called because it's brand new land that will become part of Victoria's Central Business District. 
The 13.5 acres of new land, located adjacent and just west of existing down-town acreage, were traded to Victoria in a land swap with the Three Rivers Park District.
Part of the agreement states:  "By March 1^st, 2007, the developer will submit detailed plans for the commercial/retail components including floor layouts, ren-derings, elevations, and preliminary schedule for starting and completion of all phases."
Since it is city-owned property, "the City and the developer will also be nego-tiating the purchase price and improve-ments to be made by the respective par-ties.  The developer will be required to pay for all consultant and legal costs asso-ciated with the project."
Stated Mayor-Elect Mary Thun, "We've got some buildings out there that will still be standing when this happens, so I'd like those people to be talked to."  She referred in particular to the people at the Dairy Queen.
"What is preliminary and where does that put us?" asked Councilmember Rich-ard Tieden.
Replied City Attorney Mike Norton, "It gives Mr. Crowe the right to meet all of our requirements.  The city has to be satisfied with all the information it re-ceives."  He added that a preliminary agreement is similar to a letter of intent, only a little more formalized.
Stated Mr. Crowe, "Things are con-tinuing to move forward.  This [agree-ment] allows me to bring negotiation further so people who would be acquiring parcels from me are able to move forward."
Councilmember Tieden asked about the housing number of 400 new apart-ments or condominiums - with 170 deemed to be senior housing -- planned as part of the combined usage for the new city acreage "Certainly rental or condos are two entirely different packages," he stated.
Replied Mr. Crowe, "It depends on the market what those exact numbers are right now.  I don't know.  Whether it's market rate or subsidized rental, I haven't done those studies yet.  I see that parcel as an opportunity to really, really create an identity - to come out and unveil the secret of what you have."
Stated Mayor-Elect Mary Thun, "I hope you'll be exploring a City Hall-Library complex for that area."
"Yes," replied Mr. Crowe.  "I believe it provides an opportunity for the city to do something spectacular."

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