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the grant funds are such things as administrative overhead costs, legal fees, permit fees, prorated <br />salary costs. <br /> <br />Mayor Gamec recommended that they table action until they are sure that the funds are <br />guaranteed because many of the grants that have been issued, have been pulled. <br /> <br />Principal Planner Trudgeon replied that he did not see that as a problem. <br /> <br />Councihnember Kurak questioned why they would not proceed with accepting the grant, because <br />that has no real impact as to whether the grant is pulled or not. <br /> <br />Mayor Gamec stated that if the City starts the project and spending money with the intention of <br />getting the grant and then the funds are pulled, it could be a problem <br /> <br />Councihnember Zimmerman inquired if the acceptance of the grant requires the City to provide a <br />certain number units of low incoming housing. <br /> <br />Principal Planner Trudgeon replied no, explaining that the grant was to be used for a mixed-use <br />development that has transit. <br /> <br />Councihnember Cook felt that they should accept the grant at this time. <br /> <br />Councilmember Pearson stated that he had talked to one of the owners of the BMA property and <br />he indicated that there has been no significant amount of money exchanged between them and <br />the developers of the Town Center. He questioned what type of situation it places the City in, to <br />accept a grant for a project on a property if they don't know who legally owns the land. <br /> <br />Councihnember Kurak replied that there has been a significant amount of money that has been <br />exchanged. Currently the ownership of the property is still retained by the ownership of record, <br />which is why she cannot vote on the property. Enough money has changed hands so that the <br />Town Center is a reality. <br /> <br />Councilmember Cook stated that at this time they are only accepting the grant because the funds <br />are not dispersed until after money has been spent on the project by the City. <br /> <br />Councilmember Zimmerman stated that he did not have a problem with waiting a couple weeks <br />to allow the Mayor more time to research the issue. <br /> <br />Councilmember Elvig stated that he does not want to get into a legal battle by accepting a grant <br />to build a road on property the City does not have legal rights to. <br /> <br />Councilmember Kurak replied that if the purchase of the land by the developers does not <br />proceed, then there will be no need for Sunwood Drive. The grant is directed for the Town <br />Center only. <br /> <br />City Council/February 25, 2003 <br /> Page 14 of 18 <br /> <br /> <br />