Agenda - Council - 08/10/2004 - Laserfiche WebLink

Home

Mr. Lasher replied RTC wanted the entire $836,566.33 and aH'eed to produce written attthorization fi'om PACT Schools and DR Horton authorizing the release and accepting a Special Assessment for their portion of the parking and Phase I and Phase II road improvements. Councilmember Elvig questioned what the vehicle would be for the City to get those funds back, as they catmot assess those =m,oups any longer. Mr. Lasher explained Mr. Feges stated RTC will have DR Horton and PACT Schools a~ee to a new Special Assessment as part of the written authorization. If RTC cannot get those letters of attthorization they will return the escrow. DR Horton and PACT Schools need to be able to be assessed to move forward. Councilmember Strommen asked if there are any assurances that PACT Schools and DR Horton are likely'to agree to this. She expressed concern that the escrow will be released soon. Mr. Lasher replied the escrow will not be released without the letters of a~eement. Mayor Gamec indicated the City would also have the a~eement for the conveyance of the land before releasing anything. Councilmember Elvig asked for clarification that the release of land will not come for another 30 to 45 days. Mr. Lasher explained the City will get a promissory note between the time of the release of the escrow and the land being given to the City. The promissory note will be signed by RTC and the bank giving the City the rights to that property. This is being done because the closing documents will take longer than RTC would like. City Atton~ey Goodrich indicated a promissory note cannot give title to.land; a promissory note is for an amount of money being borrowed. The promissory note would be for the $836,000, and ifRTC cannot ful~ll their end of the bargain they would have to give the $836,000 back. He advised the promissory note should be signed.by the bank as well as RTC. The Council should be clem' to staff if that is one thing they want. Secondly, at the June 29th special meeting he understood the Council to say they did not want residential property to be assessed. By aH-eeing to paragraph two they would be changing that requirement, Unless the secondary developer xvere to pay the assessment. Mr. Lasher indicated the assessment would be a transaction between RTC and DR Horton. Com~cihnember Cook stated the payment of the assessment is a marketing decision for the people building the homes, and he does not la~ow why the City would get involved with that. The builder cm~ pay it off or pass it on to the end user. Mr. Lasher advised assessments being paid by residents run the ]roost risk of assessment challenges, He does not lo~ow that they have to stipulate the amount of the payoff, but they City Council/July 20, 2004 Page 3 of 7