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<br />with Paul Donna, Diana Lund, and Sean Sullivan on Thursday and they plan to have a report <br />completed for the June 13 meeting. We will have enough cash on hand because the City is paid <br />twice a year for taxes. There are two options: TIF or taxes similar to the bonds like we- did for <br />the City Hall project. Mr. Norman stated that he told Boike's and their Realtor he would take <br />this to the City Council and ask to enter into the purchase agreement prior to June 30. <br /> <br />Mayor Gamec inquired if we buy the property and the bridge comes, who will pay us back. He <br />noted that with regard to Highway #212, the State did not reimburse the City. He stated he <br />would hate to put that kind of money in if we have to donate it to the State. He asked about a <br />joint powers agreement. <br /> <br />City Administrator Norman stated that is the second document in this case. <br /> <br />Mayor Gamec stated we can sell that property but if it will be used for the bridge, he did not <br />want to just give it to the State. <br /> <br />Mr. Norman stated that the question tonight is should we enter into a purchase agreement before <br />we know the exact finances. <br /> <br />Councilmember Strommen stated she is totally in favor of going forward but not with the <br />purchase agreement when we do not know where the financing is coming from. <br /> <br />Councilmember Elvig suggested getting someone to just walk us through likely financing. <br /> <br />Mr. Norman stated we will not have a bond in place by June 30; we would have to do an interim <br />loan. Bonding would be sometime in July or likely August and bonding would get cash to cover <br />roughly $300,000. We would probably fund this through the utility request; $400,000 from <br />River Crossing and $300,000 - that's what we have to find. The 2007 budget has a line item of <br />$400,000 federal grant from the river crossing. We can do that if we put in a storm utility <br />drainage. <br /> <br />Councilmember Elvig asked how we get rights to it. <br /> <br />Mr. Norman responded we would come up with the money at some point. <br /> <br />Councilmember Pearson inquired how those 40 acres would impact our assets in the City - could <br />it up our borrowing power. <br /> <br />Mr. Norman stated that the City was successful in getting one of the taxes through. Our debt <br />levy limit has been removed because of the new tax bill. <br /> <br />Councilmember Pearson stated with that additional property, it may make our paperwork look <br />better; it should add to our equity because land is going up. <br /> <br />Mr. Norman replied he was not sure if it would or not. <br /> <br />Special City Council / May 30, 2006 <br />Page 2 of 4 <br />