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<br />Councilmember Dehen inquired as to the cost to the City. <br /> <br />City Attorney Goodrich responded this would delay the payment of 3 million dollars. <br /> <br />Public Works Director Olson noted if the City did not see any development, there would be no <br />costs and there was no way this could be quantified. <br /> <br />Mr. Dorn stated there were six major issues including Knife River. He noted if this were <br />resolved, the Knife River issue would get resolved. The punch iist money would be paid to the <br />City. The escrow of $60,000 for inspection costs would be waived and the City would get those <br />funds. He stated there was a clause in the documents that if a bank has a security interest in the <br />contract, the credits would be collected and paid to the bank and not Oakwood, but they were <br />paid to Oakwood. He stated the bank has agreed to not pursue those credits. He stated this was a <br />good deal for the City. <br /> <br />Councilmember Wise stated his concern was setting precedent. <br /> <br />Councilmember Elvig did not see this as precedent setting. He noted the City was in trouble here <br />too and they were trying to work with the bank. He saw this as a loan. He wanted to see this <br />money get paid back to the City. <br /> <br />Councilmember McGlone stated the entire deal was precedent setting and there were benefits <br />from this. <br /> <br />Councilmember Look stated the 3.5 million belonged to the taxpayers and the repayment of it <br />and he felt bad for banks today, but this does not discount the fact that the City is responsible for <br />the money put into this. He asked what the City stood to gain from this. <br /> <br />City Attorney Goodrich responded the settlement agreement issues and homeowners association <br />escrow issues would get resolved. <br /> <br />Councilmember Elvig stated the City would get paid back one way or another. <br /> <br />The Work Session was recessed at 6:59 p.m. <br /> <br />The Work Session was reconvened at 10:34 p.m. <br /> <br />2) 2010 Street Reconstruction Assessment Discussion (continued) <br /> <br />Councilmember Elvig suggested the City sit down with the City of Anoka and find out what <br />Anoka wanted to do and then the Council needs to decide if this road would be downsized or <br />proceed forward as proposed. <br /> <br />Councilmember Look stated if Ferry Street were cut off, the vehicles would use Dysprosium. <br /> <br />City Council Work Session / December 8, 2009 <br />Page 4 of6 <br />