Monday, March 22, 2004 Shoreline Conference Center

6:00 p.m. Highlander Room

PRESENT: Mayor Hansen, Deputy Mayor Jepsen, Councilmembers Chang, Fimia, Grace, Gustafson, and Ransom

ABSENT: none

STAFF: Steve Burkett, City Manager; Robert Olander, Deputy City Manager; Julie Modrzejewski, Assistant City Manager; and Joyce Nichols, Communications and Intergovernmental Relations Director; Debbie Tarry, Finance Director; Paul Haines, Public Works Director; and Kirk McKinley, Aurora Corridor Project Manager

GUESTS: John McKenzie of CH2Mhill; George Choi and James Kim; Art Skolnik of Sky Nursery; Don Dally of Pepperhill Center; and Larry Wheaton, Goldies

Mayor Hansen convened the meeting at 6:20 p.m.

Steve Burkett City Manager, introduced an item related to the City’s long-range financial planning process. He and Debbie Tarry, Finance Director, handed out materials in preparation for the City Council Retreat to be held in April. Mr. Burkett explained that 2005 and 2006 will be difficult budget years. He said that at the retreat, staff will be presenting revenue options for Council to consider. The material in the packet he handed out was intended to help Council set priorities for services and programs in the General Fund, Street Fund and Surface Water Fund.

Ms. Tarry reviewed the material, explaining the information in the priority-setting process. She reviewed the purpose of each section of the material and responded to questions. She asked Councilmembers to return the forms to her by March 30.

Councilmember Fimia expressed the opinion that the exercise should be done first by citizens and then by the Council. Otherwise, it was too late for citizens to affect the process. She also requested information about how much discretionary funding that could be spent on operations is being put into capital projects.

Mr. Burkett responded that information about operating and capital funds would be put together for discussion by the retreat.

Councilmember Gustafson said his view that Councilmember’s are elected to represent the people who elect them and to make decisions. He thinks the Council should propose priorities and ask members of the public to comment and provide suggestions.

Councilmember Grace suggested having the Council of Neighborhoods go through the priority-setting exercise to get a sense of its priorities. Mr. Burkett concurred.

The next item on the agenda was a presentation on a project proposed for Aurora Avenue.

James Kim described a project proposed for 149^th and Aurora—a 60-unit condominium complex with a health club, local bank, physician’s offices and other retail. He expected the complex to take up approximately 60,000 square feet, have a 225 car underground garage, employ about 200, and cost approximately $20 million. He outlined concerns with the site and lack of left turn access to the property from northbound Aurora which he felt to be critical to the project.

Larry Wheaton, representing Goldie’s Casino, said he needed a left-turn directly into his business.

Don Dally, representing Pepperhill Center, expressed his opinion that redevelopment on Aurora Avenue will not be successful without left turn access.

Art Skolnik, representing Sky Nursery, reported that the Aurora project has cast a pall over Sky Nursery plans because of uncertainty. He said Sky Nursery has a redevelopment plan but is hesitant to move forward with it without a southbound left turn pocket guaranteed in writing.

Responding to Councilmember Ransom, George Choi said he did not have all the necessary land assembled that his project would need. He explained that he is in the process of trying to purchase property adjacent to his, but has not been successful.

Councilmember Fimia asked Mr. Choi what his timeframe was for a decision on the development going forward. Mr. Choi said he had to make a substantial payment by the end of April and would need some encouragement from Council by then.

The meeting adjourned at 7:28 p.m.

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Joyce Nichols, Communications and Intergovernmental Relations Director