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Mayor Gamec noted that Steve Schmidt of Northern Bank stated that he <br />does not feel it wise to require a first mortgage from developer as <br />it would tie up the developers borrowing power. <br /> <br />City Attorney Goodrich read aloud Mr. Steve Schmidt's letter of May 23, <br />1983 to the City of Ramsey regarding letters of credit, first mortgages, <br />etc. <br /> <br />Bob Johnson - Respectfully urged Council to adopt a policy of requiring <br />25-35% cash deposit or a letter of credit for 35% of the project, that <br />Ramsey would do well to follow the lead of other communities who have <br />found this process very constructive and profitable. <br /> <br />Arnie Cox - Stated that he was informed, by someone who is in the audience <br />tonight, that they were told by someone at City Hall that utility <br />construction was to begin in Ramsey on August 15, 1983. <br /> <br />Mr. Schnelle stated that he has discussed this with City Staff and can't <br />find anyone who made a statement like that and that he wishes the <br />person in the audience would name the person on City Staff who was <br />supposed to have made that comment. <br /> <br />Mr. Clayton Berg stated that he takes 99% of the calls to City Hall <br />regarding sewer and water and he knows that there are no plans for <br />construction to begin August 15, 1983. <br /> <br />Mayor Gamec stated that as of right now, there have been no hearings <br />regarding sewer and water and there are not plans for construction. <br />If anybody wants sewer and water, they have to petition for it or <br />be causing a pollution problem. It is not the intention of this Council <br />to install sewer and water where it is not desired. <br /> <br />Arnie Cox - Stated that there are a lot of articles in the newspapers <br />expounding on how fast sewer and water spreads once the facilities <br />enter the city and those articles should also bring out the fact that <br />there are provisions to prohibit sewer and water where it is not <br />wanted or needed in Ramsey's ordinance. <br /> <br />Mayor Gamec reiterated that according to the assessment policy, citizens <br />of Ramsey are not getting sewer and water unless they or the landfill <br />create a need for sewer and water. City Council and Staff have done <br />everything we can to protect everybody in Ramsey from sewer and water <br />and our policy is those who want it pay for it. <br /> <br />Councilmember Reimann stated that a 25% cash deposit and letter of <br />credit for balance is unworkable for the City and developers, that <br />he disagrees with those persons who say bringing in commercial tax <br />base will not lower taxes, and that he is in favor of requiring a <br />35% minimum cash deposit only, as the City would be automatically in <br />line for first mortgage without requiring first mortgage. Councilmember <br />Reimann quoted figures of what other communities are requiring of <br />developers. <br /> <br />Janet Houle - 16230 Salish - Inquired if the figures Councilmember <br />Reimann quoted were when the community initially developed sewer and <br />water or from when sewer and water development were more established. <br /> <br />C/May 31, 1983 <br />Page 17 of 26 <br /> <br /> <br />