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September 25, 1978 Page 4 <br />Councilmember Baumgartner stated he would like to see the water billings list used <br />and have the issue put on as an agenda item for an agenda meeting, once the budget <br />sessions are over with Councilmembers Rowley, Ziebarth and Hodges agreed that they <br />would like to have the issue discussed further. <br />Councilmember Hodges stated that the City should check into the violators of the <br />food operations. Councilmember Baumgartner recommended that that item also be put <br />on a future agenda, after the budgets and elections, to give Staff time to research <br />it. <br />NORTHCREST PARK DEVELOPMENT <br />Mr. Beim of Pinecrest Properties explained that he had thought everything was set <br />on the development of his property and putting in the improvements but that he had <br />been surprised to find out that a security was required by the City and that he had <br />checked on a letter of credit or bond but was not able to get either one at this time. <br />He added that the fact that there is a ten year spread on the special assessments is <br />different then for other land owners. He added that he has agreed to everything but <br />the pay -off on the special assessments. <br />Administrator Achen explained that the City had never set these requirements before <br />but also pointed out that such a project had not been done in the City before. He <br />added that the fiscal agent had recouiiended that the City shorten the assessment <br />plan. He also stated that the City has been working with Mr. Beim for the past <br />two years and during that period has begun taking a stronger stand by requiring <br />developers to provide financial performance guarantees. He added that <br />staff had surveyed other cities and found that most cities will not put in public <br />improvements for a commercial project when there is only one property owner.. <br />Administrator Achen explained that the financial guarantee is designed to relieve <br />the City of financial risk. Staff recommended an $845,000 bond to cover the first <br />five years of principal and interest on Mr. Beim °s estimated special assessments. <br />Although Mr. Beim says he cannot meet this, staff still recommends some amount of <br />security be required. <br />Mr. Beim pointed out that if the special assessments don't start until 1980, it <br />will give him a year to sell some of the property but that he could not guarantee <br />he would sell some. <br />Administrator Achen stated that the Attorney has determined that the development <br />agreement binds Mr. Beim to paying the special assessments. Attorney Meyers added <br />that the City has not been in such a situation before: with a major commercial/ <br />industrial development that must generate enough sales to assure that the debt <br />service terms of the bonds can be met. He added that in the development agreement, <br />the developer agrees to pay the taxes and assessments as they come due and that the <br />best protection for the City is a letter of credit or bond. He added that another <br />method would be a promissory note from the developer, using the property as collateral. <br />Attorney Meyers stated that the 125% pay off of special assessments as land is sold <br />or developed would be an alternative assurance for the City. <br />Mayor Pickar stated that some cities allow 120 days from the issuance of a building <br />permit before the taxes and assessments are due at 125 %. Attorney Meyers stated <br />that they could count from the time of the sale or the issuance of the building <br />permit. He recommended that the City go with the time of the sale. <br />