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