Minutes - Council - 10/14/1986 - Special

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file for Resolution #86-167). The first paragraph should read as follows: 'WHEREAS, the property known as Gateway North Industrial Airport was purchased in Ramsey township by a group of businessmen calling themselves the Anoka Industrial Park Corporation in 1971. The airport was laid out in 1972 and consisted of a soft-surface main and crosswind runway of 2,500' and 2,365' respectively.' Further Discussion: Councilmember $orteberg stated that the resolution wording 'acquire and develop' implies spending money and he doesn't recall anything being included in the budget for airport expenditures. Mr. Hartley stated that the City is close to beginning the zoning or moratorium process; at the point zoning or moratorium is implemented, the city is compelled, as the developer or owner of airport property, to acquire any property to which development plans are impacted because of the zoning. Mr. Hartley stated that Council is at the point of making a substantial commitment and should recognize the fervor with which the Airport Commission debated the issue and made their recommendation. Mr. Hartley referred to funding and stated that acquisition costs would be 90% State-Federal/10% local. If the City is forced into premature acquisition of property, MN/DoT Aeronautics Division will provide for 2/3's of the cost if it is generally known that the Federal Government has those funds available. When Federal funding comes about, the City and State would be reimbursed the difference between the amount they have each expended and the amount they are required to spend when there is Federal participation. Mr. Hartley stated that based on responses from the Federal Government, it is believed Gateway has an excellent chance for being funded. Motion carried. Voting Yes: Mayor Reimann, Councilmembers Sorteberg, Cox, Schlueter and DeLuca. Voting No: None. River's Bend Properties Resolution: Mr. Hartley stated that Rick Foster and Lyle McLaughlin have requested that the City consider exchanging a portion of an existing letter of credit for a different letter of credit so that they can take the cash drawn down from the first letter of credit to pay special assessments and taxes. The reason has to do with language in the mortgage that the bank holds on the property and project; for some reason the letter of credit is established at face value in the mortgage which is an uncommon practice. Mr. Hartley stated that he and City Attorney Goodrich have reviewed the request and the city's interest is served if the developer's contract is fulfilled; he and Mr. Goodrich see no problem in the letter of credit being represented by two letters of credit and are recommending assisting Mr. McLaughlin and Mr. Foster in straightening out their affairs at the bank. Motion by Councilmember Cox and seconded by Councilmember Sorteberg to adopt Resolution #86-168, as prepared by the City Attorney, relating to the River's Bend Plat letter of credit. (Please refer to resolution file for Resolution #86-168). Motion carried. Voting Yes: Mayor Reimann, Councilmembers Sorteberg, Cox, Schlueter and DeLuca. Voting No: None. ~ Special Assessment Deferment: October 14, 1986 Page 5 of 10