Minutes - Council Work Session - 09/15/2003

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Councilmember Elvig stated that we have talked about the developer paying reimbursement fees. Mr. Norman stated that these numbers have not been plugged in. He referred to the bottom box of page 3; none of these numbers take into consideration the $250,000 pledged from the developer. Building permits are in here, reimbursements are not in here. The next expenses are less. You will fall behind the first year but by a smaller amount, however, by the second year, you will be ahead. Councihnember Zimmerman inquired where residential development is anticipated to start. Councilmember Elvig responded at Rhinestone and C.R. #116. Councilmember Zimmerman suspected there would be a demand on Armstrong and C.R. #116. Discussion ensued relating to roads and utilities. It was noted that the Town Center Gardens were not included in the numbers so it looks even better. That brings the number of debt dollars even lower. Councilmember Cook commented that if we come out better, we can move ahead to the next phase more quickly. Mike Mulrooney stated that they had met with the developer and he and Todd Urness were present to give information not previously received. Todd Urness, Attorney, stated that the focus of their due diligence was to find out how the developer was going to finance this project - $35 million. They met with the bank, and found that the developer has done some rather large transactions with this bank for years, and most recently in the last few months. The bank was expected to be fully committed by the end of this week - they are drafting up definitive dates. Mr. Norman added that there is one closing scheduled for this week. Mike Mulrooney, Economic Development Consultant, stated that Ramsey Town Center LLC is really Bruce Netegaard. He controls 80 percent of the LLC and the other 20 percent is in the form of a family trust. We looked at what commitments are there on the part of the sub- developers, who are they and what kind of commitments we have. One is D.R. Horton which is a large housing developer. Mr. Netegaard's expertise lies in the housing. D.R. Horton is an option agreement at this time - not a purchase agreement; this is not out of the ordinary. Mr. Urness talked about reviewing the agreement, the filing of the final plat, agreement on the grading plan and agreement on the development agreement. D.R. Horton gets approval rights of the development agreement. Mr. Mulrooney stated there is an agreement with Academic Investments which is the Charter School. Ball fields would not be owned by the school, they would be public. He added that there have been four more letters of intent received - Allina Medical, Crestview Senior Housing, North American Properties, and a housing condominium project. Mr. Mulrooney stated that City Council Work Session/September 15, 2003 Page 6 of 10