Council grants final extension to developer on Konagra site after extensive due diligence

Council voted to give Triban Investments a final contract extension to Aug. 3, 2026, for the redevelopment of the former Konagra (Cott) property after a lengthy presentation and questions from council members. City staff and the developer said the site has presented unforeseen issues during due diligence, including additional foundation costs, a portion of the parcel recorded in the FEMA floodplain and soil contamination that requires remediation and off‑site disposal.

Rick Lundstrom, land development manager for Triban Investments, told council the developer has spent more than $80,000 on due diligence and that recent geotechnical testing showed helical foundation costs of roughly $2.7 million for the project to meet builder standards. Lundstrom also said a southeastern corner of the property was recorded incorrectly on FEMA maps and that a targeted remedy is expected to resolve the mapping issue without reducing unit counts. He said the national builder partner requires a complete, vetted package before corporate approval and that the team expects a decision from the builder’s corporate group later this month; the requested extension gives time to finalize corporate review and to ensure the project can proceed without further extensions.

Several council members expressed frustration over the time taken—one member said the council had been waiting “five years” for progress—while others argued the city risks losing the developer if it refuses a final extension. Staff emphasized the request was for a "final" extension and that the city had negotiated estoppel protections earlier in the contract to address tax and abatement questions.

Separately, council adopted an emergency ordinance removing the Konagra site from the city’s Community Reinvestment Area (CRA) boundary so that the city’s tax increment financing (TIF) can remain the primary funding mechanism to support seawall construction and related public improvements. Staff said the CRA boundary had made the TIF subordinate and that the boundary change clears the path for capturing TIF revenue for infrastructure tied to the redevelopment.

The council’s roll call on the extension showed a majority in favor with one recorded no vote. The record shows the council also approved the CRA boundary amendment as an emergency measure.

What happens next: Staff said Triban and its builder will report to the city if corporate review yields required changes, and that if the developer fails to proceed the city may seek other development partners. The council’s action preserves the TIF framework for seawall financing while giving the current developer a final opportunity to complete approvals.