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value. The City will get a promissory note from the bank and RTC. The promissory note can <br />actually be in the amount of the $836,000. <br /> <br />The consensus of the Council was to require a promissory note in the amount of $836,556.33, <br />signed by Conmmnity National Bank and RTC for the release of the escrow. <br /> <br />Counci hnember Kurak clarified RTC will transfer the 29 acres of land, which they paid in hard <br />dollars, fi'ce and clear. <br /> <br />Mr. Lasher responded in the affirmative. <br /> <br />Counci hncmber Kurak expressed concern with the escrow being given away without having <br />solid collateral in return. <br /> <br />Counci hnember Cook commented with the promissory note and the special assessments <br />agreements the City is in good shape. <br /> <br />Motion by Mayor Gamec, seconded by Councilmember Cook, to enter into the Developers <br />Agreement Amendment Proposal to RTC, LLC, with the amendment in paragraph two to state <br />"...Phase I and Phase I[ Road Improvements, and an executed promissory note in favor of the <br />City signed by both RTC and Community National Bank in the amount if $836,566.33." <br /> <br />Further discussion: Councilmember Elvig questioned what assurances the City has regarding the <br />4.2 million dollars in park improvements. <br /> <br />City Attorney Goodrich advised the basic park agreement provides for that. <br /> <br />Counci hncmber Strommen suggested a time frame be included in paragraphs seven and nine. <br />She stated to have these additional agreements with an open ended time frame creates potential <br />for dragging this on. She inquired about the Protective Covenant in favor of Community <br />National Bank. <br /> <br />City Administrator Norman indicated there can be no other bank on the site without the <br />permission of Community National Bank. This will be addressed at a later time, as staff and the <br />developer are in agreement that will have to change. <br /> <br />Counci hnember Strommen expressed concern that this will set the tone that the City has agreed <br />to the Protective Covenant. <br /> <br />Counci hnember Kurak inquired if RTC looked at all the verbiage changes in the agreement. <br /> <br />City Administrator Norman responded in the affirmative. He noted the only change the Council <br />bas made tonight is to paragraph two and RTC had indicated they would agree to a promissory <br />note in that amount. <br /> <br />City Council/July 20, 2004 <br /> Page 6 of 7 <br /> <br /> <br />