Minutes - Council - 11/25/2003 - Laserfiche WebLink

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be a secondary development agreement. One of the big items on page 6 of the Allocation Agreement deals with the letters of credit. There is significant requirements for a letter of credit for different phases, which is put up by the master developer as well as the secondary developer. If an issue was: to arise on the parcel D.R. Horton is purchasing and the developer does not go forward with certain things, D.R. Horton wants to be able to cure the default by using the money posted to the City by Ramsey Town Center, LLC. Mr. Goodrich stated that he thought the language had been drafted very carefully to address those types of issues. Councilmember Cook inquired if they were breaking new ground with this agreement and that the process should get easier as more development occurs. City Attorney Goodrich replied perhaps, but each developer will have their ownrequests. City Administrator Norman noted that he did believe that the process would get easier. Councilmember Kurak inquired if the option contract had buy downs and, if so, does the letter of credit go down. City Attorney Goodrich replied that D.R. Horton has kept the details of the agreement private. He noted that the option agreement will not directly have anything to do with the City. Councilmemb~ Kurak inquired if the letter of credit covered the entire option. City AttorneY Goodrich replied that they would have the letters of credit in place for only the parcels they were working on. Councilmember Strommen inquired if the language in the Allocation agreement pertaining to benchmarks was indicating that D.R. Horton is reserving a portion of the residential allotment until certain benchmarks are met. City Administrator Norman explained that the language pertaining to the benchmarks is a restatement of what is included in the master development agreement for the entire parcel. Councilmember Strommen inquired if D.R. Horton was reserving a percentage of the residential property. City Attorney Goodrich explained that the City will not be issuing building permits for the other 33 acres until a portion of commercial is completed. Councilmember Strommen inquired as to what happens if D.R. Horton stalls on developing the section of property they have the option on. City Administrator Norman replied that if the developer sells over 15 percent of the commercial property then it is not an issue. City Attorney Goodrich explained that the option and or purchase agreement provides that D.R. Horton has to build out in a certain time and if they do not they will lose out their reservation. City Council/November 25, 2003 Page 16 of 28