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Councilmemb~ r Elvig inquired if the cost of construction ends up being higher than what is <br />estimated and ithe amount of the bonds does not cover the construction costs where would the <br />funds come to )ay for the overage. <br /> <br />Mr. Cairns e!plained that the PACT Charter School has a guaranteed price maximum for <br />construction s¢ the price of the building cannot increase unless PACT were to come up with <br />additional m0r~ey to cover those costs. If they were faced with an overage they would have to <br />reduce what they do in the building. <br /> <br />Councilmemba. r Elvig replied in regards to Ms. Sitz's statement that the non-taxation issue is <br />something the!CoUncil looked at very heavily in the process. There was forgiveness of costs <br />such as land for City Hall as part of adding the PACT Charter School into the Town Center <br />because the de{veloper thought it was very important. It does not eliminate any assessments on <br />the property. : <br /> <br />Councilmemb~r Cook stated that the Town Center is being developed to do more than create tax <br />revenue. They~ want to be able to offer many things to the community and one of those things is <br />a school, i <br /> <br />Mr. Cairns noted that they have handled 13 similar transactions in the last four years in <br />Minnesota for!iZharter School. Half of those projects were renoVations of existing properties, but <br />they have als0 built new buildings several times with the closest school being the Wo'odbury <br />math and science building. <br /> <br />Motion by Co~uncilmember Kurak, seconded by Councilmember Elvig, to adopt the amended <br />Resolution/~03-12,334 presented by staff at the meeting authorizing the preliminary issuance of <br />approximatelyi$12 million dollars in revenue bonds to be used for the construction of a PACT <br />Charter School. <br /> <br />Motion carded. Voting Yes: Mayor Gamec, and Councilmembers Kurak, Elvig, Cook, Pearson, <br />Strommen, and Zimmerman. Voting No: None. <br /> <br />Case #1. a: iRequest by Amcon to Defer City Costs <br /> <br />City Adminis~ator Norman explained that this development has gone through a development <br />change. PreVigusly they were working with Academic Investments and now the project has been <br />turned over to ~Arncon. <br /> <br />Mr. Robert Fdster, representing Amcon, explained that Amcon's sole role initially was to build <br />the building bi~t it became necessary for Amcon to step in and replace Academic Investments. <br />The reason Athcon is doing this is because time is of essence in order to get the school open in <br />September. There were significant delays in the closing on the property by Academic <br />Investments, Which is why Amcon stepped in. Because the timeframe is so short they did not <br />have the time ito get a loan to buy the land and pay some of the upfront costs, which includes <br />reimbursing A~cademic Investment for up front costs and land closing so Amcon is going to pay <br />for the land up,', front until the bonds are closed. In order to get it all accomplished in such a short <br />amount of time, Amcon was requesting that the City defer the cost of the site improvements and <br /> <br />City Council/December 16, 2003 <br /> Page 7 of 32 <br /> <br />P77 <br /> <br /> <br />