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1 III 1 Council Meeting Minutes March 14, 1989 Page 7 Council Business, continued A new proposed vacation date of June 19, 1989, would fit into both Hydro-Stream-Pipkorn Ltd., Inc. and the developer's time frame. Closing is proposed for March 17, 1989. It would be contingent on comp 1 et i on of an env i ronmenta 1 aud it, execution of a development agreement, and posting of a Letter of Credit by the developer. Brandt asked that wi th the absence of the Mayor, who woul d be authorized to sign the purchase agreement, and also if the City Attorney had reviewed the document. Locke said the Acting Mayor, Arly Gunderman, would sign the purchase agreement and John Dean, Attorney, has reviewed the document. Williams questioned that if Hydro-Stream-Pipkorn occupied the property past June 19, 1989, would a possible provision be negotiated whereby clean-up of the site could begin at that time. Locke said it would be difficult to rent the property after June 19, 1989, because the developer I s Letter of Cred it woul d have been received and the deal could be completed in the near future. The property owner is required to remove the tank and barrels prior to the City taking possession of the site. The lease-back arrangement is an emergency stop-gap which would be used in unexpected circumstances. Williams asked that the City be assured that the rental relationship with Hydro-Stream-Pipkorn, Ltd. Inc., would not exceed two or three months. Locke explained the lease-back arrangement was included in the purchase agreement so that the City would own the property a fe\'1 months before the time required by the developer. This arrangement gives the property owner more time to prepare the plans for their future facility and gives the City possible additional immediate ir:come from renting the property to Hydro-Stream-Pipkorn, Ltd., Inc. The rent would be $5,000 per month plus taxes. Locke feels it is extremely unlikely that Hydro-Stream-Pipkorn, Ltd., Inc. would cause a delay in the project. Williams asked if the project does not proceed as planned and the rental situation becomes a long term possibility, would the City be assured that the site would appear orderly to the public. Williams would prefer some assurance by staff that this project would not become a lengthy project because of unforeseeable problems. Locke cou 1 d not see a problem in making improvements to the site if unforeseeable problems occur, and feels confident with the project. Council Bus i ness Purchase Agreement for Hydro-Stream Pipkorn Site Report 89-71 Resolution 89-38