requiring repayment. City Attorney Tamilarasan explained that the ordinance
would reserve funds within the city’s budget for the CIC’s use, but the CIC
would not receive any money until it secured a demolition contract and
submitted documentation for reimbursement.
Mayor Jadwin confirmed that funds would not be disbursed unless the CIC
moved forward with demolition. She said the CIC would first secure a
contractor, then request payment through the city once work began. Once the
state reimbursed the grant, the CIC would return those funds to the city.
President Bowers noted that without the resolution, there was no formal
obligation for the CIC to reimburse the city. Mayor Jadwin responded that
while technically true, the CIC’s membership included the Mayor, two
Councilmembers, the Director of Planning, and the Director of Economic
Development, which provided oversight. She said a memorandum of
understanding between the city and CIC could suffice even without formal
legislation.
Director Schultz added that if demolition occurred after January 1, 2026, the
city would bear the full cost unless the state granted an extension, which he
said was unlikely. He said delaying approval by two weeks could jeopardize
the $485,000 grant and that passing the ordinance with a waiver was in the
public interest to secure those funds.
President Bowers asked if the CIC obtained demolition quotes from
companies not affiliated with the developer. Director Schultz said there was
one such quote, and it fell within the grant’s budget. President Bowers asked
under what circumstances the CIC would proceed with demolition instead of
allowing the developer, Connect Real Estate, to handle it. Director Schultz
said postponing the development agreement to November 17, 2025,
effectively shifted responsibility to the CIC. President Bowers disagreed,
noting that the developer had not indicated an inability to complete demolition.
She asked who ultimately decided whether the CIC or developer would
conduct the demolition. Director Schultz said the CIC, as the property owner,
would make that decision.
Vice President Weaver asked the City Attorney about language changes to
Section 3.1 of the agreement. City Attorney Tamilarasan said revisions were
also needed in Section 2 to ensure the city did not obligate payment without
demolition occurring. She said both sections required cleanup and that the
total grant amount must be confirmed, as various documents listed differing
figures of $500,000, $496,000, and $486,000. Mayor Jadwin clarified that the
grant amount was $486,000. She said the administration rounded the
appropriation to $500,000 to allow flexibility if demolition costs exceeded the
grant amount. She said if the developer performed the demolition, none of the
funds would be spent and would revert to the city. If the CIC conducted
demolition, the CIC would reimburse the city with the $486,000 in grant funds