PRIME VICTORIA REAL ESTATE
CAN THE DEVELOPER PRODUCE?

Matt Crowe of CEI Ventures was on the agenda for the May 24^th city council meeting. 
Holly Kreft, Victoria Director of Planning, introduced the issue.  She said a letter was received from CEI dated May 21^st.  She said additional information was received from Welsh Companies which was sent to Springsted Financial.  She said the June 1^st deadline is for the preliminary development agreement.
Welsh is the company doing finan-cials for CEI Ventures.  Springsted is the company hired by the City of Victoria to perform a third party review and analysis of financials to determine if CEI has the capacity to complete the project proposed for the 13 acres of new downtown Land Swap Property.
Stated Councilmember Richard Tied-en, "One of the concerns, and there are many, is the timing.  This is a major undertaking for you, and certainly for us, and then just to get this information to-night?  My concern is that it comes for-ward even later than the eleventh hour.  There has  been all kinds of correspon-dence to you saying, 'Get this done!  Get this done!'"
Asked Councilmember Jim Paulsen, "Do these submissions rise to the level to meet the requirements?"
Replied Victoria City Attorney Mike Norton, "There have been concerns about quality of submissions, so we've wanted a Springsted analysis.  I'm concerned about the quality of materials submitted, and there's no secret about that."
Councilmember Tim Amundsen referred to the $1.5 million in infrastruc-ture costs proposed to get the Land Swap property developed.  Infrastructure refers to roads and utilities.
Stated Tim, "The decision is whether we spend $1.5 million in citizens' money or if you do.  That entitles us to as much information as we can get in order to make a solid decision.  We want to be as responsible as we can.  This is prime real estate ... It's committing 13 acres."
Matt Crowe said he is willing to sub-mit information to Springsted but not willing to pay for the study.  "I will not let my company spend any more money until we're at the next stage," he said.
"You knew we needed that Spring-sted Study," stated Councilmember Tied-en.  "It's for the purpose of an indepen-dent analysis."
Councilmember Tim Amundsen em-phasized, "It will provide a review of CEI Ventures to determine if you have the capacity to complete the project ... to determine how much public subsidy will be required for the project.  When you're asking for the city's dollars, we want what we want.  Machts nichts."
Added Councilmember Tieden, "We're not trying to limit you.  You've come a long way, but when the rubber meets the road, we've got to be comfort-able with it."
"Is the Springsted Study going to be the last thing?" asked Matt Crowe.
"No!" replied Councilmember Paul-sen.  "I think we've been very clear about that.  We have already done what other councilmembers would not have even attempted."
Agreed City Attorney Norton, "Springsted may ask for more informa-tion.  The Welsh information is not partic-ularly helpful, in my opinion."
"Isn't it all about who pays for the infrastructure?" asked Councilmember Roden.  "The council has wanted to work with you.  I don't think we'll get to the end of this if a study is the point at which you won't move on."
Said Councilmember Amundsen, "Why would we commit $1.5 million of taxpayers' money without it?"
Asked Councilmember Tieden, "Would you really want to walk away be-cause of this?  It's not that much more to accomplish.  We've asked for this for about a month.  This isn't new."
Mayor Thun commented on the plans previously outlined by CEI for the Land Swap area and gave concluding remarks.
"I like the idea of apartments in Victoria," she said.  "I like the whole idea of working with the Dairy Queen owners.  I like the idea of a boutique hotel, but I'd like to also know if it would be here in 5 years or 20 years.
"We have no proof that you can pro-duce these things, and that's all we're ask-ing for.  I'm not going to pay for your infrastructure.  It sets a bad example.  The city doesn't pay for infrastructure for de-velopers to make money.
"I'm not interested in your age or if you get money from your aunt.  I want the proof that you can do this development.  I don't care how many people you know.  I'm feeling that this council doesn't think you can do it.
"I don't quite believe you can't get the letters unless there's some other reason.  The bottom line is that we need documents to tell us that we have commit-ments.  I care about firm commitments from your people, what you think the land is worth, what you're willing to pay.  If I had all of what I've just said, I'd say yes.
"I do not want this to come to the council again without a staff recommen-dation."
Mayor Thun directed in the future that Matt Crowe go to the city staff.  "You go to them, and they have to convince us," she stated.
Councilmember Paulsen reiterated a past statement about the value of the city-owned 13 acres.  He said its value depends on the development plan and the number of square feet of construction being proposed.  "Is it going to be 90,000 square feet or 300,000 square feet?" he asked.

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