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fund the improvements to the land directly. They have requested the City enter into an <br />agreement with the bank and assess the improvements back to the bank. The City would conduct <br />the improvements and the inspections. He stated the City has done this type of arrangement once <br />before, with Legacy Christian Academy. However, he pointed out, that was a larger project. <br />This project is little risk to the City. The City Attorney has noted the City is not obligated to <br />approve this request, though his opinion is that this is an option if the City would like to allow it. <br />City Administrator Ulrich asked if Mr. Diers would give a history of this project. <br />Randy Diers, President of Village Bank, explained they have had this property for four years, <br />and have tried to sell it for three years as it is currently zoned, which is commercial. There has <br />not been interest. He said as they considered the property further, they started to envision <br />residential lots, especially because of the proximity to the river. He stated they were aware of <br />the soil issues that had to be considered. He noted the bank owns the property, but the bank is <br />not a developer. He explained regulation is rather specific in this type of situation. One <br />stipulation is the bank cannot be in speculation of real estate. In order to ready the property for <br />development, the construction loan needed has been prohibitive to the developers that have <br />shown interest thus far. He said the Bank had decided to ask the City for help in this issue and <br />created the project to be of no risk to the City. <br />Don Kveton, Chairman of the Board of Village Bank, explained he has been living in Ramsey <br />for 16 years. He is committed to follow through on the proposal. He noted that the real estate <br />language in the banking law could be interpreted several ways. He stated he would like to keep <br />this entire project as clean as possible to preserve both his and the Bank's reputations. He said he <br />also wants to do what he can to keep taxes down. He reviewed some of the homes they have <br />sold and areas he has developed. He commented this is a nice piece of land, and there will be <br />nice homes. It is hard to show the land as it is; it needs to be cleaned up and made ready to <br />show. He said he is not worried about selling the land; it just needs to be cleaned up. <br />Commissioner Shryock stated it was good to hear their opinions on this project. She noted <br />having these partnerships is beneficial. This development is in need of their expertise. <br />Commissioner Johns stated she is in favor of this agreement as well. The City has put everything <br />in place, and has endorsed this to be developed from the beginning. Since the City has worked <br />with the Bank before, we know they are a good partner and they will follow through. She said <br />this will be a good development, and agreed that it is very low risk. <br />Chairperson Riley questioned if the Legacy Christian Academy assessment has been repaid to <br />the City. <br />City Administrator Ulrich explained that assessment was to be paid over a 15 to 20 year period. <br />He stated the Academy has been current on their taxes, and thereby current on their assessment. <br />Mr. Kveton pointed out when the lots sell, the City will get money back. Every time a lot is <br />closed on, he said the funds go to the City for the assessments. He said he hoped his bank was <br />out of this project in the next year. <br />Public Works Committee / May 19, 2015 <br />Page 3 of 8 <br />