05-24-1999 EDA - Laserfiche WebLink

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the developer but if they only pay for the value of the lot there would be no balance to be returned which would require the City to go after the developer to recoup their expenses. He stated requiring 150% will provide more protection to the City. Acting President Stigney closed the regular meeting and opened the public hearing at 8:10 P.M. Hearing no public comments, Acting President Stigney closed the public hearing and reopened the regular meeting at 8:10 P.M. MOTION/SECOND: Quick/Thomason. To authorize the sale to Marquis Builders, Inc. Commissioner Marty requested it be added that staff look into incorporating 150% or in excess of the actual value of the land to assure the City is covered in the case of default. Housing Inspector Dorgan stated staff will need to negotiate with the developer since they understand the City's policy to set the value at the value of the lot. He stated they could attempt that negotiation and also bring back an amendment to the current policy to require 150% in the future. Commissioner Marty stated this is what was presented to the EDA and after presentation it was indicated staff is still in negotiation. Housing Inspector Dorgan stated staff can tell the buyer the EDA wants 150%. He stated his recommendation would be to require 150% of the value of the project but the current policy does not require that today. He stated the worse case scenario is that the buyer starts the foundation but does not complete the project. He stated he does not foresee that being a problem with this situation. Commissioner Quick asked if the property would revert to the City should the developer walk away from the project at one-third completion. Housing Inspector Dorgan stated it would. Commissioner Quick noted the property would be enhanced at that point and asked if the past three to four projects have been a problem Housing Inspector Dorgan stated there was one project where a letter of credit was not obtained at all but the house was eventually completed through a time extension. Commissioner Quick suggested this the Resolution be approved and staff be directed to amend the policy as being suggested. City Attorney Long stated that Section of 17.03 does allow the revesting of the title with the EDA if the developer fails to complete the project. The EDA has the surety amount and the ability under Section 17.3 to require the title to the property with as many improvements as are made to the property. Commissioner Marty asked if the EDA could require 100% on this project instead of 150% and then, as Commissioner Quick suggests, amend the policy to reflect 150% in all future transactions. Housing Inspector Dorgan stated the developer has been told they would be required to post the value of the lot, which is what the City's current policy requires. 4 U:\CARIS\COUNCIL\MINUTES\MVEDA24.MAY