10-13-10 Council Minutes - Laserfiche WebLink

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MINUTES CITY COUNCIL OCTOBER 13, 2010 Administrator reported that the Public Works Superintendent has not been able to get a letter from MN DOT to this effect. The Administrator also recalled that the City Bngincer looked at the sediment issue raised previously by Mr. Waite and determined that sediment was not extensive and there were concerns about access. The Cngineer felt that cleaning out what is there do more harm than good. The City Administrator felt that a solution may be to get the parties together and get a final determination on whether there is or is not sediment coming from the highway. Waite reported that he has pictures of the culverts from three years ago. At that time they were clear and now they are full of sand. The City Administrator indicated that he would research the issues raised by Mr. Waite and would report back to the Council. PROMISSORY The City Administration reported that the City is in the process of having NOTE - mortgage documents completed for the loan to Graba Properties. Once GRABA the documents are finalized and signed, they will need to be approved by PROPERTIES the two banks holding mortgages on the property. 1n the meantime, there are some bills that need to be paid relative to build out work that has been done. The City Attorney has suggested that the City could enter into a Promissory Note with Graba properties to advance dollars relative to the bills as well as to reimburse itself for SAC charges that were paid to Metropolitan Council on behalf of this property as well as legal fees relative to the loan. The amount of the Promissory Note would be approximately $108,000. The balance of the funds would not be paid out until the mortgage documents are finalized. Keis asked if there was risk to the City. The City Administrator reported that there is risk as there would be no mortgage securing the property. However, based on the tenants and rent structure, there is revenue to make the necessary payments. "the City Administrator felt it would be advantageous to get the contracts paid off before any of them file liens. Payment to contractors would be contingent upon receipt of lien waivers. T'he Administrator reported that the City would make payments directly to the contractors. The Administrator reported that of the $108,439.48, approximately $47,680.48 would go toward build-out costs, $56,675 to the City to reimburse for the SAC fee, and $4,084 to the City for legal and title expenses. Mr. McGraw introduced the following resolution and moved its adoption: 10