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happening. CbunCilmember Strommen stated that the City is counting on the revenues to pay for <br />the fees and i~r they are leaving themselves open at all they need to be thinking of that. City <br />Attorney Goodrich explained that the City will have an escrow in place for phase I and phase II <br />of the streets :a~d parking structure within the Town Center when they close on the property with <br />Amcon. He 4id 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 be~;ome landowners, which is the main guarantee. Councilmember Strommen asked <br />has there beenienough stated that is'specific to the project. City Attorney Goodrich replied that <br />anyone could ,tisk 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'ipeople ask them about it and the Council will have to be firm to say no or match it <br />exactly. Cout~cilmember Zimmerman stated that he was apprehensive of the precedent they may <br />be setting. M~,. Foster stated that this is a unique situation because Amcon is going to fund all of <br />the costs of th~ project out of their pocket until the bonds close or financing is in place and the <br />City will be pl~acing a one million dollar mortgage on the property: The City will have a piece of <br />property that 15 worth more than they are asking to defer because the property has been appraiSed <br />at 1.3 million, l Councilmember 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 rePlied that he did not believe so. Councilmember Elvig stated that the fact they are <br />being addre0s~d bY Amcon who is willing to put their money on the line is a good step and, <br />therefore, he W~as willing to support the effort. <br />Motion carried~. Voting Yes: Mayor Gamec, and Councilmembers Cook, Kurak, Elvig, Pearson, <br />and Strommer}. Voting No: Councilmember Zimmerman. <br /> <br />CouncilmembCr Zimmerman stated that he was oPposed because he was apprehensive of the <br />precedent the~ were setting. <br /> <br />City Attorney iGoodnch stated that the other action that was necessary was for the City Council <br />to approve the~ metes and bounds conveyance as Lot 1 Block 1 Ramsey Town Center pursuant to <br />Mn Statute 46~.358 subd 5b (6). <br /> <br />Mr. Cairns no~.ed in regards to setting precedent with placing a mortgage on the property some of <br />the rationale ~cludes the fact that the City has a default security with the primary developer, <br />bridge financigg, which is a stop gap, the City will be reimbursed for all of its costs, and the City <br />already has $130,000 in es~ow. <br /> <br />City Attorneyi Goodrich inquired if the Council was opposed to including those items in the <br />resolution. <br /> <br />The Council: rCphed no. <br /> <br />Motion by Co~)ncilmember Cook, seconded by C0uncilmember Kurak, to approve a metes and <br />bounds conveyance of Lot 1 Block 1, Ramsey Town Center, pursuant to Mn Statute 462.358 <br />subd 5b (6). <br /> <br />Motion carr/~. Voting Yes: Mayor Gamec, and Councilmembers COok, Kurak, Pearson, <br />Strommen, an~t Zimmerman. Voting No: Councilmember Elvig. <br /> <br /> City CoUncil/December 16, 2003 <br /> Page 15 of 32 <br /> <br />P85 <br /> <br /> <br />