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City Attorney Goodrich inquired if Mr. Cairns client were to request that the process to sell the <br />bonds be stopped, could that happen. <br /> <br />Mr. Cairns replied theoretically yes, but Amcon is required to take down the property on May <br />15"~ regardless. <br /> <br />City Attorney Goodrich inquired as to what would tie Amcon to taking the land down on May <br />1 5"'. <br /> <br />Mr. Fostcr replied that Amcon would enter into an agreement with the City as part of the <br />resolution that they would take down the land by May 15th. <br /> <br />Mayor Gamec inquired if Amcon would agree to language that if the bonds are not sold that <br />Amcon is responsible for the payment of fees and charges. <br /> <br />Mr. Cairns replied that by signing the secondary development agreement Amcon is required to <br />pay those fees. <br /> <br />Councilmember Strommen inquired if the City will be required to pay any of the costs prior to <br />being paid back. <br /> <br />Financc Officer Lund explained that SAC and WAC charges have to be paid within the year. <br />The building permit fee is paid to the City and there is a surcharge that is paid to the State. <br /> <br />City Administrator Norman inquired if that surcharge is paid before February. <br /> <br />Finance Officer Lund replied that surcharges are paid quarterly. <br /> <br />Mr. Foster noted that Amcon would agree that any out of pocket expenses the City incurs up <br />fi:ont Amcon would pay for those fees. <br /> <br />Councihnember Strommen stated that she wants to be careful of the timing issue because they <br />have been rushed for other projects. <br /> <br />Motion by Councilmember Cook, seconded by Councilmember Kurak, to allow a one million <br />dollar mortgage to be placed on the PACT Charter School property in lieu of a letter of credit and <br />deferral of fees listed with the secondary development agreement based on the benefit of the <br />school to the City, and it being a non-profit entity. If the bonds are not sold, Amcon guarantees <br />payment and any out of pocket incurred by the City will be paid by Amcon. Also, amending the <br />secondary development agreement provision related to security to allow for a mortgage and that <br />thc secondary development agreement will be with Amcon Housing Development LLC. <br /> <br />Further discussion: Councilmember Elvig stated that this has been a very frustrating project and <br />everything has been vel3, harried. They have significant issues coming forward at the last minute, <br /> <br />City Council/December 16, 2003 <br /> Page 14 of 33 <br /> <br /> <br />