1988-03-08 - Laserfiche WebLink

Home Browse Search

I I I Council Meeting Minutes March 8, 1988 Senden stated the other disagreement is what constitutes their having met the conditions (what do they need to do ~o prove they have the 50,000 square feet committed); and stated Locke wants an additional letter from the financing company regarding the valid" ity of the lease commitments; and, when that comes in with the Letter of Credit, the city is ready to begin its acquisition. Senden then stated the development should be in the ground very shortly and a marketing program can be established to sell the lots and get the buildings on line faster than what is proposed in the schedule. Senden stated Mr. Johnson from CMS, the first 20,000 square foot commitment, was present to answer any questions and he (Senden) is the 30,000 square foot commitment. O'Meara did not think it accurate to say that all of the condi- tions that Locke alluded to are likely to be satisfied; there has been in the development agreement the 50,000 square feet plus proof of financing, which is more than a one or two paragraph let- ter from an investment banker saying that if you get 50% leases, then we'll consider making the commitment; did not want council to have the false impression that there is no more than just a few I's to dot and a few Tis to cross before the city is in a position to take the full step of going out to acquire the $1,300,000 in real property; development agreement needs to be amended; Letter of Credit is the least of his problems (the crux is the lease com- mitment); does not believe what has been provided is enough for the city to make a commitment; and finalizing the paperwork will take some time. Casserly stated his greatest concern deals with financing commit- ment for the building; the one Purchase Agreement for 20,000 square feet can be easily executed and arranged; as O'Meara pointed out, getting a secure commitment for 30,000 square foot will take some time. Benke stated it would be up to Senden to bring in those documents and to satisfy the concerns of Casserly and O'Meara as to their adequacy. Motion by Williams, seconded by Larson, to AUTHORIZE AMENDMENT TO ARTICLE V OF THE DEVELOPMENT AGREEMENT BY AND BETWEEN THE CITY OF NEW BRIGHTON AND BRIGHTON PARK, INC. AT SUCH TIME AS BRIGHTON PARK, INC. SATISFIES THE CONDITIONS (TO THE SATISFACTION OF THE CITY'S COUNSEL) PRECEDENT TO ACQUISITION IN SECTION 3.2 OF THE DEVELOPMENT AGREEMENT_ 5 Ayes - 0 Nayes, Motion Carried Sinda reviewed proposed resolution as provided by the City Attor- ney's office regarding proposed amendments to the Minnesota Tax Increment Financing Act; and indicated, if council adopted the resolution, copies would be mailed to the Governor as well as to various state senators and representatives. Page 23 MN Tax Increment Financing Act Report 88-77 Resolution 88-27