09/05/1984 Council Minutes - Laserfiche WebLink

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294 Special Council Meeting September 5, 1984 Mr. Marier moved to request that the Council receive, in the form of a developers agreement, commitments from Rehbein, Tilsen and Shilling on their individual projects, in regard to what their plans are as far as developing in stages and by what extended period of time. Although it is understood what Rice Lake Estates and Ulmer's commit- ments are, they should be included in this request. Motion seconded by Mr. Kulaszewicz. Mr. Hawkins pointed out that the City would legally have to treat each contractor equally in terms of the percent letters of credits and other similar terms and conditions of the developers' agreements. He felt that the present policy of 100% letter of credit has been acceptable in small projects in the City, but a project of this magnitude may re- quire new terms. Mr. Reinert felt that the purpose of this meeting was to decided upon that policy and whether or not the City should consider changing it, and that is why he did not want to adjourn as moved earlier. On voting upon Mr. Marier's motion above, Mr. Marier and Mr. Kulaszewicz voted aye, others voted nay, thus motion failed. Mr. Reinert asked that Mr. Langness explain the concept of 35% letter of credit and the feasi- bility of same. Mr. Langness said, " The concept of 35% came from: If you assess this over a 15 -year period and have a letter of credit for 5 years of assessments, that would be about 35% and that would be a letter of credit on assessment of 100% of the cost with a letter of credit of 35% renewable every year. The risk factor for the City is minimized because it covers the time period up to tax forfeit, if it ever got that far. I feel this is feasible and that the City is adequately protected." Mr. Hawkins also added that the policy would also call for assessments to be paid in full at time of the sale of each lot which would also provide for a little cushion in the risk to the City. Mr. Reinert moved that the City establish a policy for this particular project at 35% of credit and assessed over a 15 -year period, assessing 100% of the cost and that the assessments be paid in full as the lot is sold or building permit issued. I would ask that Rehbein Excavating, Shilling Construction, Ulmer Construction, Tilsen Properties and Rice Lake Estates respond to this policy. Motion seconded by Mr. Bohjanen. Motion carried with Mr. Marier voting no. Mr. Kulaszewicz moved to adjourn. Seconded by Mr. Reinert. Aye. These minutes were considered, corrected and approved at a regular meeting on September 10, 1984. Marilyn inderson, Deputy Clerk