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<br />Motion to recommend that the City Council authorize staff to take whatever action is <br />necessary to insure that the letter of credit with R TC, LLC is extended beyond September <br />17,2006. <br /> <br />Motion by Councilmember Elvig, seconded by Councilmember Jeffrey, to recommend that the <br />City Council authorize staff to take whatever action is necessary to insure that the letter of credit <br />with RTC, LLC is extended beyond September 17, 2006. <br /> <br />Motion carried. Voting Yes: Chairperson Strommen, Councilmembers Elvig and Jeffrey. <br />Voting No: None. <br /> <br />Case #2: <br /> <br />Authorization for Acquisition for Future Northwest Metro Corridor River <br />Crossing (Boike Properties) <br /> <br />City Administrator Norman indicated language has been included in the purchase agreement for <br />the Boike property that the earnest money is reimbursable by September 30, 2006, and the <br />closing date has been moved out to November 30, 2006. <br /> <br />Chairperson Strommen inquired about the sliding scale that was discussed for the earnest money. <br /> <br />City Administrator Norman replied there was discussion with the property owner and the County <br />of the sliding scale versus the earnest money being non-refundable. He and Mr. Tinklenberg <br />directed the County Attorney to draft the agreement with the earnest money as refundable. <br /> <br />EI Tinklenberg, The Tinklenberg Group, indicated the earnest money gives Mr. Boike assurance <br />that the Council wants to work with him and wants to evaluate where this fits in with the budget, <br />and it gives the Council until the end of September to work through the budget process. If at that <br />time the decision is made not to proceed, the entire earnest money would be refunded to the City. <br />If the Council makes the decision to proceed, the earnest money would go towards the purchase <br />and the closing would be scheduled for November 30. <br /> <br />Chairperson Strommen inquired about the requirement for a 5-year balloon timeframe with the <br />purchase, as the Joint Powers Agreement (JP A) extends the timeframe of the balloon payment to <br />10 years. <br /> <br />Finance Officer Lund replied the timeframe for the purchase is only allowed at 5 years according <br />to State Statute. <br /> <br />Councilmember Elvig asked if the County is in agreement to forfeit their earnest money if the <br />City determines to terminate the agreement. <br /> <br />City Administrator Norman noted this is not specifically included in the JP A. <br /> <br />Chairperson Strommen noted in addition to the question raised by Councilmember Elvig <br />regarding the County forfeiting their earnest money, the JP A needs to be corrected due to the 10- <br />year balloon timeframe being included, rather than the 5-year balloon timeframe. She stated <br /> <br />Finance Committee / August 8, 2006 <br />Page 5 of7 <br />