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Council considers cooperation agreement to release option on north‑town utility site; staff says no purchase price committed
Summary
Utility staff asked for approval of a cooperation agreement with RES Group to encourage release of an option on land north of town so the city may pursue purchase; staff said the agreement contains no purchase price and is intended as a good-faith commitment to treat the developer like others when projects return for review.
Jeff Shanahan, Utility General Manager, explained that the Department of Utilities has identified a parcel north of town with advantageous utility infrastructure (substation proximity, a natural gas line and a 12-inch water main) and that RES Group held an option the city would like released so staff can pursue purchase agreements.
Shanahan described the cooperation agreement as the first step: once RES releases its option, the city could move forward with purchase negotiations. Councilman Horner and others asked what the city was committing to in the agreement and whether a price was included; staff replied the agreement contains no price and is intended to be a goodwill statement that the city will "work with RES when they come back with their project" and treat them similarly to other developers. A staff member summarized: "There's nothing tangible that the city's agreeing to other than we would treat them the same as we would treat any other developer."
Councilman Jensen moved to approve Resolution 2026-030 authorizing the mayor to sign the cooperation agreement; Councilman Horner seconded. The transcript records the motion and second but does not print a roll-call tally. The council did not commit to any purchase price in the agreement itself; further approvals (purchase agreements, zoning, planning commission actions) would be required before any acquisition or development.
