Agenda - Council - 01/13/2004 - Laserfiche WebLink

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which can't happen anymore. The Town Center is a significant project and the Council wants to push it forward, but they need to follow procedure. As it relates to the PACT Charter School it is a non-profit entity, a public institution, and Amcon is a long-term contractor with a good reputation who is willing to spend their own money on the project. Councilmember Pearson stated that he would like to see the project move forward, but he did not want to open the City up to any precedent setting. He would be willing to proceed if they can protect that from happening. Councihnember Strommen stated that the City is counting on the revenues to pay for the fees and if they are leaving themselves open at all they need to be thinking of that. City Attorney Goodrich explained that the City will have an escrow in place for phase I and phase II of the streets and parking structure within the Town Center when they close on the property with Amcon. He did not believe that there was any guarantee that the bonds will be sold and that Amcon will take out permanent financing, but the City will have a mortgage on the property so they could become landowners, which is the main guarantee. Councilmember Strommen asked has there been enough stated that is specific to the project. City Attorney Goodrich replied that anyone could ask for the same thing because everyone has some financial issues and they would like to do things as cheaply as they can and this would be a way to do it. He had no doubts that they will have people ask them about it and the Council will have to be firm to say no or match it exactly. Councilmember Zimmerman stated that he was apprehensive of the precedent they may be setting. Mr. Foster stated that this is a unique situation because Amcon is going tO fund all of the costs of the project out of their pocket until the bonds close or financing is in place and the City will be placing a one million dollar mortgage on the property. The City will have a piece of property that is worth more than they are asking to defer because the property has been appraised at 1.3 million. Councilmember Strommen inquired if the fact that the Council has approved the deed for Academic Investments plays into the rationale for moving forward. City Attorney Goodrich replied that he did not believe so. Councihnember Elvig stated that the fact they are being addressed by Amcon who is willing to put their money on the line is a good step and, therefore, he was willing to support the effort. Motion carried. Voting Yes: Mayor Gamec, and Councilmembers Cook, Kurak, Elvig, Pearson, and Strommen. Voting No: Councilmember Zimmerman. Councihnember Zimrnerman stated that he was opposed because he was apprehensive of the precedent they were setting. City Attorney Goodrich stated that the other action that was necessary was for the city Council to approve the metes and bounds conveyance as Lot 1 Block 1 Ramsey Town Center pursuant to Mn Statute 462.358 subd 5b (6). Mr. Cairns noted in regards to setting precedent with placing a mortgage on the property some of the rationale includes the fact that the City has a default security with the primary developer, bridge financing, which is a stop gap, the City will be reimbursed for all of its costs, and the City already has $150,000 in escrow. City Attorney Goodrich inquired if the Council was opposed to including those items in the resolution. City Council/December 16, 2003 Page 15 of 33 -61 -