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P84 <br /> <br />Mr. Cairns replied theoretically yes, but Amcon is required to take down the property on May <br />15'h regardless. <br /> <br />City Attorney Goodrich inquired as to what would tie Amcon to taking the land down on May <br />15th. <br /> <br />Mr. Foster 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 langnage 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 />Finance 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 />front Amcon would pay for those fees. <br /> <br />Councilmember 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 Councitmember 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 />the 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 very handed. They have significant issues coming forward at the last <br />minute, which can't happen anymore. The Town Center is a significant project and the Council <br />wants to push it forward, but they need to follow procedure. As it relates to the PACT Charter <br />School it is a non-profit entity, a public institution, and Amcon is a long-term contractor with a <br />good reputation who is willing to spend their own money on the project. Councilmember <br />Pearson stated that he would like to see the project move forward, but he did not want to open the <br />City up to any precedent setting. He would be willing to proceed if they can protect that from <br /> <br />City Council/December 16, 2003 <br /> Page 14 of 32 <br /> <br /> <br />