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SPECIAL COUNCIL MEETING <br />1 95 <br />AUGUST 25, 1988 <br />Mayor Benson called a Special Meeting of the Lino Lakes City <br />Council to order on Wednesday, August 25, 1988 at 8:00 A.M. <br />Council Members present: Neal, Bisel, Bohjanen, Reinert. <br />Council Members absent: none. City Engineer, Ron <br />Stahlberg; Fiscal Agent, David MacGillivray; Planner, John <br />Miller; Administrator, Randy Schumacher and Clerk- Treasurer, <br />Marilyn Anderson were also present. Public Works Director, <br />Don Volk arrived about 8:30 A.M. <br />Mayor Benson explained the purpose of the special meeting <br />was to consider two bond sales, review the feasibility <br />report for 2nd Avenue MSA improvement and consider a <br />consensus for Gateway Foods proposal. <br />CONSIDERATION OF RESOLUTION NO. 62 - 88 PROVIDING FOR THE <br />SALE OF GENERAL OBLIGATION IMPROVEMENT BONDS IN THE AMOUNT <br />OF $1,480,000.00 - DAVID MACGILLIVRAY <br />Mr. MacGillivray explained the purpose of this bond sale is <br />to refinance the 1985 Temporary Bond issued for the <br />improvement of Rice Lake Estates and Weber's Addition and to <br />finance the Ash Street sewer and water improvement and the <br />Main Street improvement. Mr. MacGillivray presented to the <br />Council an outline of how the amount of the bond was <br />determined as well as a schedule of how the bond could be <br />repaid and a schedule of projected assessment income. <br />The Council discussed with Mr. MacGillivray the situation <br />regarding Rice Lake Estates and why the lots have not been <br />developed. It was explained that a fifteen (15) item <br />development agreement with the developer Arvid Gearman has <br />been prepared and Mr. Gearman will have thirty days to <br />fulfill the agreement or the City will pull his letter of <br />credit and foreclose on the lots. <br />Mr. MacGillivray referred to Page Two of his handout <br />regarding the bond payment schedule. He suggested the <br />principal payments in the first two years could be reduced <br />to eliminate the need for a general levy. He explained the <br />amount of the reduction could be spread over later years. <br />This procedure would not affect the bond rating for this <br />City or affect the sale of future bonds. <br />Mayor Benson suggested that the Council approve the bond <br />sale provided that the PUD for Mr. Gearman is completed <br />within 30 days and the bond be a permanent not a temporary <br />PAGE 1 <br />