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<br />Mr. Bushman stated it should be clear that there was not a request for information that was not <br />responded to by the Bank. <br /> <br />The work session was recessed to closed session at 7:24 p.m. The closed session was adjourned <br />back to the work session at 7:36 p.m. <br /> <br />Mr. Bray advised that the Development Agreement assumed the way the development would <br />proceed is that when Ramsey Town Center, LLC found a developer for a portion of the project <br />they would come with that developer to the City and negotiate a secondary development <br />agreement that would deal with the secondary developer's obligations on the individual piece. It <br />would also hopefully determine whether the secondary developer was to take on any of the <br />global obligations, or if that would remain with Ramsey Town Center, LLC. Mr. Bray stated <br />much to his surprise, Crest View and PSD bought parcels of property without a secondary <br />development agreement. The Development Agreement says if they do that they become liable <br />for all the obligations of the master developer. This could potentially involve multiple owners <br />who all have an obligation to build an outlet to the Mississippi River, and there is not an answer <br />as to how that obligation gets allocated among them. The City can say they need to decide who <br />does that, or it could get back to the declaratory judgment with the City saying the best way is on <br />a per-foot basis, with the Court imposing that on this large group of people. The situation is <br />manageable if the Bank buys the property at the sheriff's foreclosure sale and it remains with the <br />Bank, Crest View, and PSD. If there are 15 people he does not think they would want to manage <br />that sort oflitigation; that will be a wait and see until July 9th. <br /> <br />Mayor Gamec asked if there is any speculation on who may be buying the property. <br /> <br />Mr. Bray replied no, and the concern is they may not get anyone; it is not a good real estate <br />market right now. Regarding the $22 million needed to complete the project as referred to by <br />Mr. Bushman, the City needs to come to a conclusion on what that number is and whether there <br />is justification to this claim. If the amount is $22 million, the property cannot support $22 <br />million of development costs. Those numbers become very important. <br /> <br />Councilmember Strommen expressed concern that Crest View is totally held up until their fees <br />are known. <br /> <br />Public Works Director Olson indicated it may be time to start thinking outside the box. If the <br />Letter of Credit is realized, the funds that were meant to be used for streetscape could take some <br />costs off of Crest View. <br /> <br />Community Development Director Trudgeon indicated staff will present Council with options at <br />a later date. <br /> <br />Councilmember Strommen stressed that it is not in the City's best interest to delay some of these <br />things. <br /> <br />City Council Work Session / June 5, 2007 <br />Page 10 of 12 <br />