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Councilmember Kurak commented in theory RTC is giving away 29 acres of their property, <br />which is their guarantee and letter of credit. <br /> <br />City Attorney Goodrich explained there are certain ordinance requirements that require a letter of <br />credit, and this will have to be monitored. <br /> <br />Mr. Feges explained RTC does not want to put anyone at risk. The practice would be to <br />complete three million dollars worth of work, carry it to completion and move on to the next <br />three million dollars. <br /> <br />Councilmember Cook inquired if this stipulation would lift things such as the grading phases, so <br />everything could be graded at one time. He stated he does not like the plan of moving from the <br />east to the west, and the market should determine these things. <br /> <br />Mr. Voss rcplied they have worked with Assistant Public Works Director Olson regarding this <br />and have come up with a snapping diagram that indicates what work will be done. He stated they <br />will not be investing all the dollars in grading the whole site when there are no sales at that time. <br />The corc infi'astructure is in process. <br /> <br />City Attorney Goodrich indicated it will be a minor issue to get the bank to change the letter of <br />credit to stipulate Town Center rather than Phase I. <br /> <br />Councihnember Elvig expressed concern that the AUAR costs will be very expensive and the <br />three million dollar letter of credit may not be sufficient to cover those costs. He also expressed <br />concern that in some portions of this Document, RTC is referred to as the Master Planner, and in <br />other scctions is referred to as the Secondary Developer. He clarified when RTC is the <br />Secondary Developer another letter of credit will be needed in addition to the three million dollar <br />letter of credit. <br /> <br />Assistant Community Development Director Trudgeon replied Councilmember Elvig is correct <br />and a separate letter of credit would be required in those cases. <br /> <br />Mr. Voss stated they have mapped out the design based on the commercial plat phase <br />development and the different stages of the process. The first three million dollars will be spent <br />within the next two months. In the last two months they have performed approximately 1.3 <br />million dollars worth of work. <br /> <br />Councilmember Kurak indicated she feels comfortable knowing the City will own the land, <br />which is valuable. <br /> <br />Mr. Lasher i'eviewed item seven of the Document. <br /> <br />Councihnember Kurak indicated the verbiage may need to be addressed, as RTC is not a realtor <br />and cannot have a listing agreement. <br /> <br />City Council/June 29, 2004 <br /> Page 6 of 11 <br /> <br /> <br />