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Mayor Gamec stated the Council has always said the Town Center will pay for itself. This is a <br />way to get the development going. All of the pressures from the retail are to see the houses. <br /> <br />Councihnember Strommen commented there will be some housing when D.R. Horton begins <br />their development. <br /> <br />Councihnember Kurak inquired about the projected time frame. <br /> <br />Mt'. Feges replied he would think it should be less than 30 days to get this resolved in terms of a <br />contract. <br /> <br />Councihnember Kurak questioned if Mr. Feges has a financial problem with the project. <br /> <br />Mr. Feges responded in the negative. He stated they are on track with what they are trying to do, <br />and need to deal with the gap financing. <br /> <br />Mayor Gamec asked if Mr. Feges was able to discuss this with Bruce Nedegaard. <br /> <br />Mr. Feges responded in the affirmative. <br /> <br />Councilmembcr Elvig commented this is not an overall financial problem, it is a manner of how <br />much money the developer has behind him, and there is a cash flow issue. This is a difficult <br />thing and because of all the public participation there should be some shared participation. <br /> <br />Mr. Feges explained this is the most protective and conservative approach. There are other <br />programs for participation, and grants and other funds available. This does not preclude them <br />fi'om trying to collect those funds. <br /> <br />Cotmcilmen~ber Elvig asked if there is any type of vehicle to satisfy the concern for cash floxv for <br />Nedegarrd's team. <br /> <br />Mr. Feges replied there are a lot of alternatives. It helps with interest rates being lower, and they <br />are looking at reassigning their permanent loans on the project. There already is a war chest <br />being built in the collection of escrows for the targeting of the ramps. They have discussed a <br />release of those due to the assessments. There are a lot of things on the table they have <br />discussed, and they have not been decided by anyone. The next step should be to get the <br />proposal in writing to evaluate and be sure it works. The framework is very similar to what they <br />described in regards to a cooperative agent as a technical service provider, and a fi'amework for <br />that is ah'eady in place. He has asked that this be forwarded for review. <br /> <br />Mr. Lasher indicated as the owner of property the City may choose if they do not want to sell the <br />property and want to ground lease the property. There are project types that are well suited to <br />ground leases, one of those being a cinema. Most ground leases are for 30 to 40 years. <br /> <br />Mayor Gamec directed staff to put together a proposal and bring it back for Council review. <br /> <br />City Council Work Session/June 15, 2004 <br /> Page 6 of 8 <br /> <br /> <br />