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Mr. Goodrich answered that it would, but reiterated that everything discussed was in the <br />memorandum. <br /> <br />Mr. Hendriksen responded "but then you should have investigated such. In absence of <br />recording that conversation, it seems suspect." <br /> <br />Mr. Goodrich asserted that conversation was recorded. "I documented fully every bit of <br />information he (Hardin) has given to me." <br /> <br />Mr. Hendriksen commented that he assumes Mr. Goodrich would have asked questions <br />about how Mr. Hardin was compensated and yet there is nothing in the memo regarding <br />such. Referencing the depository issue, Mr. Hendriksen stated he didn't feel that whether <br />any deposits have been made to this bank should be an issue. Referencing the financial <br />guarantee required by City Code, Mr. Hendriksen stated it was his understanding that the <br />purpose of 125% is to protect the City. His recollection was that City Code states "cash or <br />letter of credit." It was Mr. Hendriksen's view that if other options were made available to <br />the developer, he would call that a special consideration. He declared that there is and was <br />an associated risk in accepting a personal guarantee. <br /> <br />Mr. Goodrich responded that he hasn't had an opportunity to research these facts, <br />however, "if there was no conflict of interest, then this point is irrelevant." <br /> <br />Mr. Hendriksen stated that the reason he requested an investigation is that he believes that <br />this has reached the threshhold where this deserves a public hearing and a public <br />investigation. He outlined his recommendations as follows: 1) Remove Northeast State <br />Bank from the list of authorized city depositories; 2) Initiate an independent investigation <br />into the unresolved issues under provisions of the City Charter; and 3) Report the findings <br />publicly and provide public access to the information collected during the investigation. <br /> <br />Mr. Goodrich stated "I assure you no monies will be put into Northeast State Bank <br />tomorrow." <br /> <br />Mr. Hendriksen replied that "the bottom line is we have to trust people employed by the <br />mayor, and those are the kinds of things that make people suspicious." <br /> <br />Mr. Goodrich objected to Mr. Hendriksen's continual accusations "which are almost <br />impossible for the mayor to respond to all the time. Terry Hendriksen makes accusations <br />that affect many people." <br /> <br />Mr. Hendriksen replied that he went to a workshop on this subject and privately asked <br />questions, and he determined that the League of Minnesota Cities did not follow ethical <br />standards (refer to letters from the League of Minnesota Cities dated June 28, 1995 and <br />July 6, 1995 attached as Exhibits F and G respectively). He stated he also asked Mr. <br />Schroeder and Mr. Goodrich what was investigated and did not get any answers. He <br />asserted that there were many things that made him request a more thorough investigation <br />of this. He suggested that if one accepts a personal guarantee of $630,000, then that <br />person must have a considerable amount more than that. He declared that in the absence of <br />seeing any documents, he would have to say that the investigation was incomplete and <br />therefore the opinion was moot. Mr. Hendriksen felt it incumbent to ask these kinds of <br />questions when there is an appearance of impropriety. <br /> <br />Ken Wagner, 16380 Hedgehog Street N.W. - noted he has been a friend of Glen Hardin's <br />for 10 years and described him as "one of the most honest people" he knows. He declared <br /> <br />City Council/July 11, 1995 <br /> Page I0 of 13 <br /> <br /> <br />