Minutes - Council - 07/20/2004 - Special

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Mr. Lasher replied RTC wanted the entire $836,566.33 and agreed to produce written authorization 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 H road improvements. Counci lmember Elvig questioned what the vehicle would be for the City to get those funds back, as they cannot assess those groups any longer. Mr. Lasher explained Mr. Feges stated RTC will have DR Horton and PACT Schools agree to a new Special Assessment as part of the written authorization. IfRTC cannot get those letters of authorization 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 agreement. Mayor Gamec indicated the City would also have the agreement for the conveyance of the land before releasing anything. Councihnember Elvig asked for clarification that the release of land will not come for another 30 to 45 days. Mt'. 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 Attorney Goodrich indicated a promissory note cannot give title to land; a promissory note is for ail amount of money being borrowed. The promissory note would be for the $836,000, and if RTC cannot fulfill 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 clear to staff if that is one thing they want. Secondly, at the June 29th special meeting he understood tile Council to say they did not want residential property to be assessed. By agreeing to paragraph two they would be changing that requirement, unless the secondary developer were to pay tile assessment. Mr. Lasher indicated the assessment would be a transaction between RTC and DR Horton. Councihnember Cook stated the payment of the assessment is a marketing decision for the people building the bornes, and he does not know why the City would get involved with that. The builder can pay it off or pass it on to the end user. Mt'. Lasher advised assessments being paid by residents run the most risk of assessment challenges. He does not know that they have to stipulate the amount of the payoff, but they City Council/July 20, 2004 Page 3 of 7