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Case #la: IContinued <br /> <br />City Attomey ~;oodrich explained that the City Council has already approved a metes and bound <br />subdivision fo,~ the PACT Charter School and the Council would be approving a deed to Amcon <br />as they did w~'th Academic Investments. In addition, .the Council has approved a secondary <br />development ~agreement with Academic Investments, but it was never silo-ned by Academic <br />Investments~ s~ it would then be signed by Amcon. There are fees that they are asking to be <br />deferred. After meeting with Mr. Foster, they are proposing that the City place a mortgage on <br />the property ~ lieu of the letter of credit and the payment of the fees as described in the <br />agreement. In~ order for the City to access the fees they would have to foreclose on the property. <br />1~'It,is anticipatelt that the bonds will close in February but if rates change it could be as late as May <br /> If the boru~s are not closed by May 1 st Amcon would obtain permanent financing. If Amcon <br />is unable to 6btain permanent financing the City would still hold the first mortgage on the <br />property and ~ould be ahead of any other vendor. Mr. Goodrich was not sure if the City had <br />ever taken a' mortgage on a property in lieu of a letter of credit. The issue the Council needs to <br />discuss is the ~stablishment of precedent and why this situation is different. <br /> <br />Councilmember Cook inquired if one of the reasons this situation is different is because it is a <br />non-profit org [amzatmn. <br /> <br />City Attorney Goodrich replied yes. <br /> <br />Councilmemb~r Kurak inquired as to when the mortgage would be put in place. <br /> <br />City Attorney Goodrich explained that the City would place a mortgage on the property at the <br />closing of the!land with Ramsey Town Center, LLC. He noted that if the Council agrees with <br />placing a mo~gage on the property they should list why they chose to do so. <br /> <br />Mr. Foster stal~ed that the school is non-profit, and it is extremely unlikely the City will ever have <br />a situation again where a developer will be coming in to take over for another developer and <br />there is delaylon the financing. Because Amcon has to come in and take over for Academic <br />InvestmentSt~ere is a delay in financing the project and it is also the reason why Amcon does not <br />have a mortgage to take down the land like most other situations. He did not believe that the <br />Cxty would be~ setting precedent by placing a mortgage on the property because it was not likely <br />that they woUl~ see a similar situation again. <br /> <br />Mayor Gameq stated that one of the reasons is that the Council has approved the issuance of <br />revenue bon, d~, to construct the school and the mortgage is a measure to protect that the City will <br />be paid for s~it~ improvement costs. <br />City Attorney iGoodrich inquired as to who can stop the bond sale. <br /> <br />Mr. Cairns stated that they will not come back to the City until they have a bond purchase <br />agreement. <br /> <br />City Attorney!Goodrich inquired if Mr. Cairns client were to request that the process to sell the <br />bonds be stop~ed, could that happen. <br /> <br />City Council/December 16, 2003 <br /> Page 13 of 32 <br /> <br />P83 <br /> <br /> <br />