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MINUTES <br />CITY COUNCIL <br />MAY 9, 2018 <br />the original agreement. Keis stated that he does not like this last minute <br />request for additional money. <br />Brian Winges, Dignicare/Suite Living, explained that the additional <br />$50,000 would be used to prepare the land for development. He stated <br />that they were of the understanding that the existing homes had been <br />mitigated and removed. He reported that they were required to remove <br />asbestos and complete a Phase I environmental study, at extra costs, in <br />order to get the sale completed, and then the houses will need to be <br />removed. The City Administrator clarified that the City did not represent <br />that any of that would be done, nor was it stated in the purchase agreement <br />or the conditional assignment. The City Attorney explained that the <br />purchase agreement did not state that any of this work would be done, <br />simply that if the buyer was not satisfied with the Phase I report, they <br />could call the deal off. The City Administrator asked what would happen <br />to the project if the additional $50,000 is not approved. Mr. Winges stated <br />that it is not his call since he is not a majority owner, and he would need to <br />talk to Joel Larson. <br />Montour stated that we are giving a $400,000 loan and in return, getting <br />$600,000 back. Mr. Winges stated that they agreed today to pay interest <br />on the extra $150,000 if the City fronts the extra $50,000 now. <br />Torkelson stated that he supports the additional $50,000 being fronted so <br />the City can earn the additional interest.. Montour stated that the City <br />Attorney states that this does not change things much from how the <br />documents were two weeks ago, and the Council supported it then. <br />Keis introduced the following resolution and moved its adoption: <br />RESOL UTION NO. 2018-5-98 — RECESSING THE CITY CO UNCIL <br />MEETING AND CONVENING AS THE ECONOMIC <br />DEVELOPMENT A UTHORITY <br />The foregoing resolution was duly seconded by Montour. <br />Ayes (4). <br />Nays (0). Resolution adopted. <br />Montour introduced the following resolution and moved its adoption: <br />RESOL UTION NO. 2018-5-99 —APPROVING PROMISSORY NOTE <br />FOR $600, 000 AS AMENDED, WHICH INCLUDES THE <br />ADDITIONAL $50,000 ADVANCE AND INTEREST EARNED AS <br />DISCUSSED, WITH PROOF OF DEMOLITION RELATED WORK <br />DONE AND REVIEWED BY THE CITY BUILDING OFFICIAL, AND <br />9 <br />