Laserfiche WebLink
<br />I <br /> <br />I <br /> <br />1 <br /> <br />Council Me ting Minutes <br />November 2 , 1988 <br /> <br />Page 15 <br /> <br /> <br />iness continued <br /> <br />Cau nc i 1 Bus i ness <br /> <br />, he hopes that all questionable issues will be resolved Development Agreemet <br />13th Council meeting. with Welsh Companir <br />Report 88-328 <br /> <br />Item #8 ( equest to Authorize the Termination of the Development <br />Contract ith CBA Residential Development, LTD.) from the Consent <br />Agenda wer presented for discussion by Benke. <br />CBA Development <br />Locke exp 1 a i ned, a deve 1 opment contract was executed between the Agreement <br />City and SA Residential Development, Ltd. for development of the Report 88-330 <br />southeast parcel of Tax Increment Financing District #6. The <br />contract required the developers to purchase the property from the <br />City and onstruct eight townhouse units, the first three of which <br />are to be completed by December 31, 1988. <br /> <br />To date, SA has been unable to secure financing and construct any <br />of the to nhouses. On October 7, 1988, a letter was sent to Jerry <br />Svee, President, CBA, notifying him of CBA's default of the contract <br />requ i reme ts. I n response, Mr. Svee noted that the proj ect <br />financing required that the units be sold prior to beginning <br />construction of the units. Mr. Svee states that there has been <br />interest in the project, but without a model for this development, <br />no sales ave been made. <br /> <br />Locke has received a letter Mr. Svee, asking for an extension of the <br />agreement because of the attached letter from Home Owners Savings <br />Bank; whi h states that the institution will consider financing the <br />CBA proje t upon the following requirements: <br /> <br />1. FNMA Project Approval or Freddie Mac Project Approval. <br />2. Attorney's opinion on the project. <br />3. Appropriate city and county approvals. <br /> <br />Locke explained, there has been several delays in this project, <br />which wer caused by the difficulty in receiving financing. Because <br />of the d 1 ays i nvo 1 ved, Locke is concerned about extendi ng the <br />agreement and would consider pursuing other parties to develop this <br />property. <br /> <br />Benke ask d, if the agreement was terminated, would this jeopardize <br />Mr. Sveel changes of financing. Locke feels, if the City would <br />terminate the agreement, Mr. Svee may not possibly pursue this <br />developme t any further. <br />