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MINUTES <br />CITY COUNCIL <br />DECEMBER 5, 2007 <br />out that the City would have the ability to withhold occupancy permits <br />should the exterior improvements not be done. Wagner pointed out the <br />expense associated with a letter of credit. <br />The City Administrator felt that both the letter of credit and the occupancy <br />permit provisions were necessary at this point. He noted that the <br />occupancy permits only go so far in protecting the City's interests. If a <br />provision were to be deleted, the Administrator recommended that it was <br />the occupancy permit provision. <br />Wagner asked if the City had letter of credit language addressing default <br />conditions. He again stressed their desire that the letter of credit provision <br />be deleted feeling that the City had enough control under the occupancy <br />permit provision. <br />The Administrator again felt the ability to withhold occupancy permits <br />would not be as effective as the letter of credit should exterior <br />improvements not be completed. The Administrator felt that without a <br />tenant, the property owner would defer the exterior improvements. The <br />Administrator also indicated that the City would develop breach language <br />related to the letter of credit. <br />Blesener asked about the letter firom First American Bank relative to the <br />exterior improvements. The Administrator stated that he would have liked <br />to see the language more definite, but can understand the difficulties of <br />obtaining definitive language relative to the financing of the exterior <br />improvements. <br />Wagner indicated that the Hom project is creating interest in the area, and <br />he felt that they would have no problem leasing or selling the front portion <br />of the former Knox building. <br />Keis felt that both the letter of credit and occupancy permit provision <br />should be retained in the PUD Agreement. Wagner asked if the City <br />would be willing to accept a $10,000 deposit in lieu of the letter of credit. <br />The City Administrator suggested that he finalize the PUD Agreement <br />with the City Attorney. He would also discuss the letter of credit versus <br />cash deposit with the City Attorney for his opinion. The Administrator <br />felt that the PUD Agreement should be ready for Council action at its <br />December 19, 2007 meeting. <br />There was no one present wishing to comment on this matter. <br />Upon motion by Montour, seconded by Keis, the public hearing was <br />closed. <br />Z <br />