Laserfiche WebLink
Clayton Berg replied that developer's are not requesting the option of land <br />as collateral. They are requesting a percentage down and assessing out 100% <br />and that the down payment be retained in a escrow fund. <br /> <br />Roger Buchanan - The City would be foolish to agree to that, the developer is <br />admitting he is under financed. <br /> <br />Councilmember Reimann stated that the developer is going to have to pre-sell <br />some of the development, he can't afford to pay for the entire development <br />right away. The development would have to be working project from the <br />beginning that the developer can afford to finance and if he can't the <br />project won't happen. The developer's plan has to be workable for him and <br />the bank and the bank will be the controller. <br /> <br />Roger Buchanan- The City is gambling with the citizen's money. This is the <br />first time the City has taken on such a huge possibility of a costful <br />development and considering the economy of today, the City could be forced <br />to take money from general revenue which will cost the taxpayer. Eventually, <br />the City repossesses the land and sells it for back taxes but this recuperation <br />will not be passed on down to the taxpayer. <br /> <br />Clayton Berg suggested looking at the other side of the coin. Unless Ramsey <br />generates some new development and tax base, taxes are going to increase. <br /> <br />Roger Buchanan - Ramsey can guarantee quality development by requiring 100% <br />cash up front from developer, if the developer can't afford to develop he <br />can sell the land as raw land. <br /> <br />Mayor Gamec replied that the developer could also develop quickly. <br /> <br />Clayton Berg stated that requiring a 35% deposit and assessing 100% would <br />provide the City with enou§h money to make interest payments on the bonds <br />for a period of two years. <br /> <br />Gary Heitman - 16490 Uranium - Noted in reviewing minutes of EDC that <br />Commissioner Menkveld stated that developers of the southeast corner <br />were guaranteed that public utilities would be availabl~e.and if the City <br />does not proceed as planned, legal action could be taken against the City <br />by those developers. Mr. Heitman requested information regarding the <br />guarantee made by the City to those developers. <br /> <br />Councilmember Reimann and Sorteberg stated that there is no "guarantee", <br />that it was a poor choice of words and there is no contract with those <br />developers. <br /> <br />Gary Heitman - Referred to Councilmember Reimann's statement regarding <br />Representative Weaver's explanation for the high cost of government being <br />the demand for services from the people. That is the position of a Representa- <br />tive with a series of votes. Dictatorship is better than democracy if you <br />look at it from an efficiency standpoint. Mr. Heitman stated that he is <br />going to look at issues from a standpoint of what is important to him and <br />what affects him the most. <br /> <br />Audience requested estimates of what sewer and water would cost a homeowner. <br /> <br />spiC/May 16, 1983 <br /> -~Page 7 of 9 <br /> <br /> <br />