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<br />Special Council Minutes <br />Apri 1 26. 1985 <br /> <br />I <br /> <br />Jim Casserly. M'ller & Schroeder Municipals. Inc.. noted <br />that the final etter of Credit would have to be in place <br />before the city would sell any of its bonds; feels in the <br />next 50 days th city has no downside risk. <br /> <br />Blomquist asked if the Assignment of Rights Proceeds for <br />the real estate sale is temporary; Casserly responded that <br />any time they w'shed to come in with a Letter of Credit, <br />they can have $ 25.000. <br /> <br />Blomquist asked for more information about the Security <br />Agreement. <br /> <br />Casserly exp1ai ed the Security Agreement is an agreement <br />which says the wo individuals will be personally liable in <br />the event the t rms of this Agreement are not met. <br /> <br />Winkels noted i is an additional agreement that they will <br />provide an irre ocable Letter of Credit for another $150.000. <br /> <br />Casserly stated that. aside from the security aspect. in <br />doing the finan ia1 analysis, he is very comfortable with <br />the size of bon the city could issue. meets all city's <br />requirements; t lking about 12 years maximum actual incre- <br />ments. <br /> <br />I <br /> <br />Blomquist asked for clarification of development schedule. <br /> <br />Winkels replied that the city agrees to purchase property <br />on the south si e of Tenth Street by July 1. 1985; we <br />acquire propert on the north side by November 15. 1985; <br />work on the pur hases would start immediately; once we <br />actually delive property to the developer on the south <br />side he has 90 ays to build single family model homes; <br />once we convey roperty back on the north side, he has six <br />months to begin development; any failure to start within <br />certain periods of time default the agreement; December 31. <br />1988 is the com 1etion date for the entire project. <br /> <br />Blomquist asked for definition of Commencement of Con- <br />struction. <br /> <br />Winkels stated he Assessment Agreements call for assessor <br />to put value on property ;n January 1987 and January 1988. <br />We require thos values to be in place on given dates. <br />Further, if con truction stops. the agreements note the <br />dates it must b gin again. <br /> <br />I <br /> <br />Schmidt asked f r a copy of runs showing how the project <br />pays off. Cass rly distributed and explained the requested <br />infonnation. <br /> <br />Page Two <br />