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Councilmember Elvig said he is concerned about allowing Ramsey B &B to swap collaterals and <br />asked that Central Bank review the security agreements. <br />Motion by Councilmember Elvig, seconded by Councilmember Tossey, to authorize the Mayor <br />and City Administrator to execute the Ramsey B &B Associates, LLC documents as presented. <br />Motion carried. Voting Yes: Mayor Ramsey, Councilmembers Backous, Elvig, Jeffrey, <br />McGlone, Tossey, and Wise. Voting No: None. <br />7.09: Discuss Legacy Development Financial Guarantee <br />City Administrator Ulrich and City Attorney Goodrich reviewed the staff report. <br />Councilmember Wise clarified we are finding another party to guarantee the funds and the new <br />guarantor, J &B, is not connected with the development. <br />City Attorney Goodrich said staff will first ensure that J &B has sufficient assets to satisfy the <br />$100,000 guarantee and will draft a document to ensure its enforceability. <br />Mayor Ramsey expressed concern about J &B's financials, which could result in no guarantee. <br />Councilmember McGlone said the corporation has a long history and is solvent but asked the <br />City Attorney to exercise his due diligence to protect the City. <br />City Administrator Ulrich said staff will verify solvency, adding No Name Steaks is a large <br />company and the risk is short term since the letter of credit is only for three months. <br />Motion by Councilmember Elvig, seconded by Councilmember Jeffrey, to accept the financial <br />guarantee by J &B for Legacy Development based on City Attorney's due diligence. <br />Further discussion: City Engineer Himmer noted concerns about this delay as we are already <br />two weeks into the contract with WSB. <br />Motion carried. Voting Yes: Mayor Ramsey, Councilmembers Backous, Elvig, Jeffrey, <br />McGlone, Tossey, and Wise. Voting No: None. <br />8. MAYOR, COUNCIL AND STAFF INPUT <br />Mayors Trail Ride <br />Mayor Ramsey said the recent Mayors Trail Ride event raised $3,500 for charities, including <br />$1,750 for Youth First, adding participants increased from 101 in 2010 to 156 in 2011. <br />City Council / January 25, 2011 <br />Page 9of10 <br />