08/13/1984 Council Minutes - Laserfiche WebLink

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280 August 13, 1984 Adopted by the Council this 13th day of August, 1984. i a3// i psi Edna L. Sa`rner, City Clerk n_7ami . Benson, Mayor Mr. Davidson presented his report on this project noting the items that have been cleared as of this point in the project. He then outlined the route of the system as proposed. The land included within this area has been computed for the ultimate cost for these assessments. Mr. Davidson noted that some of the developers wish to phase in their proj- ects and some wanted to develop immediately. Mr. Davidson then presented some alternative for the establishment of the assessments. He suggested a bond issue spread over a 16 -year period for the undeveloping areas and a different assessment period for the developing areas._ The total assessment on an acreage basis would be $8,746.00 per acre. Mr. Davidson presented some estimated cost figures for the developing areas. Imme- diate negotiation with the Correctional Facility would begin at once with perhaps sharing their water supply for a short time. He suggested this be done in a 3 to 5 year period and outlined the time frame for the development. Mayor Benson asked if he has the Developers Agreement and Mr. Schumacher said, no and this is why this has been included in the Resolution. Mr. Schumacher reported that the developers feel that the 100% requirement by the Council is too expensive and he asked this be discussed. Mr. Hawkins said this is a Council decision and is based on how much development they want and how fast. He said there are communities who require letters of credit of only 35% - another community requires 15% in cash up front and this amount is held in escrow for the length of the assessment period and used to pay off the balance of the assessment. Mr. Davidson suggested a three year temporary bond and at the end of that period, the needs should be clear. Mr. Reinert asked Mr. Hawkins how many communities have the 100% require- ment and Mr. Hawkins said he was unaware of any at this time. After some discussion this issue, Mr. Reinert felt that perhaps this Council should re -think their position on this requirement. He felt this was a chance for the City to have something positive. Mr. Davidson suggested holding the assessment hearing up front and cert- ify to the County in 1984 for 1985 collection. This eliminates capital- ized interest, thus reducing the cost of the project and gives the Council an idea of the income for the support of the bond of issue. Mr. Bohjanen moved to continue this meeting past the normal adjournment time. Seconded by Mr. Reinert. Motion carried unanimously. Mr. Schumacher noted this is only a draft resolution - the major part is the requirement of the Council as to the Developers' agreement. This should be finalized.