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SAC and WAC charges until the bonds closed. Because Amcon has been pushed into the role of <br />being the developer to save the project and pay out of their pocket, 1.5 million dollars is a very <br />difficult thing to do. He noted that it was anticipated that the bonds would close in six to eight <br />weeks. <br /> <br />City Administrator Norman noted that staff did have a meeting with representatives from Amcon <br />and this is not a request to waive or reduce any of the fees; it is simply a deferment until the <br />bonds are sold. <br /> <br />Mayor Gamec inquired if there were any problems legally if the City were to defer the costs. <br /> <br />City Attorney Goodrich replied that if in fact the Council would decide to defer the costs what <br />guarantee will there be that the fees will be paid on time. <br /> <br />Mr. Foster explained that they are going to start the project on Monday because they intended to <br />close on the land tomorrow. That date is essential to get started before Christmas to get the <br />project completed. If they can't put the agreement together there is a real possibility the project <br />goes away, at least Amcon's involvement. There is a very small chance that once they are this <br />far that the bonds won't be issued. If that happens, Amcon will go out and put permanent <br />financing in place. At the time of closing on the land they will be putting a signed lease in place <br />so that if the bonds are not issued, the PACT Charter School will lease the building from them. <br />Amcon would be willing to include language that the fees paid to the City will be paid when the <br />bonds close or when permanent financing is in place. <br /> <br />City Attorney Goodrich replied that he would need to see that language in writing. He inquired <br />if Amcon would be guaranteeing payment. <br /> <br />Mr. Foster replied yes. <br /> <br />City Attorney Goodrich advised the Council to be careful of establishing precedent. <br /> <br />Mayor Gamec inquired if the Council was in favor of deferring the costs. <br /> <br />Councilmember Elvig replied that he had more questions he needed answered. He inquired as to <br />what the guarantee would be that the costs would be paid if something were to happen with the <br />project during the construction phase. <br /> <br />Mr. Foster replied that Amcon is not placing a mortgage on the property. <br /> <br />The Council tabled action until later in the meeting to allow the City Attorney an opportunity to <br />discuss the issue further with Mr. Foster. <br /> <br />Case #15: Accept Funding for the Trott Brook Greenway <br /> <br />Parks/Utilities Supervisor Riverblood stated that the purpose of this case was to adopt a <br />resolution accepting a $500,000 grant from the State of Minnesota. The appropriation is from <br />the Legislative Commission on Minnesota Resources (LCMR), which are proceeds from the <br />Environment and Natural Resources Trust Fund. These monies are to be used for conservation <br /> <br />P78 <br /> <br />City Council/December 16, 2003 <br /> Page 8 of 32 <br /> <br /> <br />