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I I I Council Meeting Minutes April 22, 1986 Hedlund agreed, but asked why a price couldn't be negotiated; Benke stated that earlier action means we will be looking at that in the immediate future. Hedlund asked why the contracts had not been eliminated; Benke stated the earlier discussion is specifically in that direction, considering other opportunities and other changes. Locke indicated he had met with Hedlund to start that process and the city intends to continue to work out some arrangement on the land; the critical point at this time is that the item before the council is neither the Development Agreement nor Hedlund's relationship to the land, but the plat and the PRD request. Schmidt stated when council proceeded with the Water Ridge project, it did so on the basis of certain commercial development taking place on the north side and a residential project on the south side of Tenth Street, all having to have a certain value, which was going to be included in the city's Tax Increment Financing District. On the basis of the guaranteed values made by the developer in the Agreement, the city sold bonds and that is the money that is being used to buy the homes; now we are in the process where the developer defaulted on the Letters of Credit to secure our commitments in this project and Hedlund's land was a piece of collateral that was put up for the Agreement. Schmidt continued that the city has, in fact, proceeded with the develop- ment and the developer has defaulted and the earlier action was to notify them they were in default and to proceed in getting another developer for the site, because the city is committed to a project on both sides of Tenth Street and all of the matters will be taken care of. The city has no intention of jeopardizing the project with a plat that is in no way in compliance with the previous Agreement and the basis for the city selling the bonds. Benke stated the purchase of Hedlund's property was one step in a multi-step process; the default and other problems came between the city's starting the process and before the city got the part of the process where we would actually acquire owner- ship of Hedlund's land. Benke stated the city is at the point where the whole package needs to be redesigned and Locke and Hedlund have already started the project. Hedlund asked what needs to be done to make progress; Locke indicated the city has started looking at appraisals and will continue to work with Hedlund to get the matter resolved. Motion by Schmidt, seconded by Williams, to WAIVE THE READING AND ADOPT A RESOLUTION MAKING FINDINGS OF FACT AND DENYING PRELIMINARY PRD-46 AND PL-144. 4 Ayes - 0 Nayes, Motion Carried Page Nine