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those fees will be sufScien~ to pay the debt service on the bonds, the City will speciallY' asseJ~La <br />portion of the cost against the benefited~properties. <br /> <br />Councilmember Kurak inquired if the developer would be credited back any of the funds if the <br />City collected more than needed to pay off the debt. <br /> <br />City Attorney Goodrich replied no, but the Council in the future could consider reducing the rate. <br /> <br />Councilmember Elvig inquired if the City takes out a general obligation bond and the <br />development fails what is the remedy. <br /> <br />City Attorney Goodrich explained the letter of credit has to be provided up front by the <br />developer. The developer would like to see benchmarks included in the development ageement <br />but City staff would prefer to have a letter of 6redit. <br /> <br />Councilmember Elvig inquired if it was possible to do a combination of benctunarks and a letter <br />of credit. <br /> <br />City Attorney Goodrich explained that once the reven~ue bonds are sold, the debt is the City's ' <br />obligation no matter what happens and the City would not be able to go back to the developer <br />unless it was stated in the development a~eement initially. <br /> <br />Councilmember Elvig stated the fact that a 30-inch pipe will be installed rather than. a 12-inch <br />pipe seems that it will benefit the entire Town Center project so the possibility is quite oPen as to <br />who would be considered as benefited property owners. <br /> <br />City Administrator Norman replie~t' that is correct. <br /> <br />Councilmember Elvig stated that Sunwood Drive is the main thoroughfare and without that there <br />would be no development. If the entire development works it does not cost the City anything. <br /> <br />City Attorney Goodrich replied that that was true with the stm2-n sewer, but was less true with the <br />street because technically the City would be responsible for 80 percent with 20 percent being <br />assessed. <br /> <br />City Administrator Norman stated he was comfortable that the money coming into the City from <br />the development will cover the costs incurred by the City, and provide additional funds into the <br />City. <br /> <br />City Attorney Goodrich stated that the Sunwood .Drive extension is probably the one thing the <br />Council would be most comfortable with because it is something the City would be doing in the <br />near future. <br /> <br />Councilmember Kurak inquired if the development fails and the City was to construct Sunwood <br />Dr/ye could the City assess that entire cost back to the property owner. <br /> <br />City Council Work Session/August 12, 2003 <br /> Page 5 of 11 <br /> <br />-41 - <br /> <br /> <br />