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772:— Agenda Section: 9.A <br /> 11 <br /> y fr <br /> . REQUEST FOR COUNCIL CONSIDERATION Repos-Number: 94-1128C <br /> STAFF O T Report Date: 4-21-94 <br /> -71 Councl:kwon: <br /> G Special Order of Business <br /> CITY COUNCIL MEETING DATE April 25, 1994 0 Pubiic Hearings <br /> 0 Consent Agenda <br /> g Council Business <br /> Item Description: Consideration of Waiving the Letter of Credit Requirement for Mounds View <br /> Business Park South <br /> Administrator's Review/Recommendation: <br /> - No comments to supplement this report <br /> - Comments attached. <br /> ExplanationiSummarJ(attach supplement sheets as necessary.)_ _ _ <br /> c7JARY; <br /> • <br /> • <br /> The Everest Group has requested that the City consider waiving the <br /> Letter of Credit requirement as stated in the Development Agreement <br /> for the Mounds View Business Park South. The Letter of Credit is <br /> slated for expiration in September, 1995. <br /> Staff met with Mr. Allen Anderson of Everest last month to discuss the <br /> request and determine if, in fact, all the obligations under the <br /> Development Agreement have been met. The City's Community Development <br /> Coordinator was asked to research the provisions of the Agreement and <br /> comment on the status of the requirements as well as the market <br /> ' values, taxes and tax payment record. <br /> After researching the data and meeting with Everest's representative, <br /> it is staff's conclusion that the risk to the City regarding this <br /> . development are minimal in terms of the conditions of the Agreement. <br /> It is staff's recommendation that the Council consider waiving the <br /> remaining Letter of Credit requirement of the Agreement. As the letter <br /> from Everest states, "Elimination of this requirement frees up the <br /> owner's ability to borrow funds necessary for further development of <br /> property in Mounds View and to recruit new tenants to the business <br /> • park. " <br /> Waiving the Letter of Credit requirement would be a gesture of <br /> cooperation with Everest and send a message to the company that the <br /> City supports their continued initiative to complete the business <br /> park. <br /> ' W <br /> Saman a Orduno, City Administ ator <br /> RECOMMENDATION: <br /> Motion to waive the Letter of Credit requirement under the Development <br /> Agreement for Mounds View Business Park South. <br />