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I 96 <br />issue and change the principal payment for the first two <br />years to $50,000.00. <br />Mr. Bisel moved to approve Resolution No. 62 - 88 <br />authorizing the sale of a $1,480,000.00 bond, changing the <br />repayment schedule for the principal amount in 1988 and 1989 <br />to $50,000.00. Mr. Bohjanen seconded the motion. Motion <br />carried unanimously. <br />Mr. Reinert moved to allow Mr. Gearman until October 1, 1988 <br />to complete the requirement of the PUD to include that all <br />assessments be brought current, if not completed, start the <br />proceedings to foreclose on the property and pull the letter <br />of credit (i.e. initiate the developers agreement) and <br />notify Mr. Gearman by certified letter. Mr. Bisel seconded <br />the motion. Motion carried unanimously. <br />Mr. Bisel asked how the situation with Rice Lake Estates <br />could be avoided in the future. Mr. Schumacher explained <br />that the current developers agreement requires the <br />capitalized interest up front and also suggested that a <br />developer's track record be examined. Mr. Reinert suggested <br />contacting other communities to find out how they handle <br />these situations. Mr. MacGillivray suggested that the <br />Council could require a larger letter of credit that could <br />be easier to draw upon. <br />Resolution No. 62 - 88 is printed at the end of these <br />minutes. <br />CONSIDERATION OF RESOLUTION NO. 63 - 88 PROVIDING FOR THE <br />SALE OF GENERAL OBLIGATION TEMPORARY IMPROVEMENT BONDS IN <br />THE AMOUNT OF $610,000.00 - DAVID MACGILLIVRAY <br />The purpose of this temporary bond is to finance the <br />improvement in Reshanau Lake Estates South, second addition <br />and D. Erickson's 2nd Addition, Phase II. The first <br />additions of each subdivision are nearly completely sold and <br />therefore the temporary issue was recommended by Mr. <br />MacGillivray. <br />Mr. Reinert asked what kind of relationship these two <br />developers have with this City? Mr. Schumacher explained <br />that they have been prompt and cooperative and since they <br />are completing their developments in phases it is easier to <br />handle. <br />Mr. Reinert moved to approve Resolution No. 63 - 88 <br />approving the sale of the $610,000.00 temporary improvement <br />bond. Mr. Bohjanen seconded the motion. Motion carried <br />unanimously. <br />PAGE 2 <br />1 <br />1 <br />