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MEMO TO: MAYOR AND CITY COUNCIL <br /> 1 41 <br /> S <br /> FROM: CLERK--ADMINISTRAT�fj� <br /> 121 \j" .-"frYL.., <br /> DATE: JANUARY 11, 1990 <br /> SUBJECT: EVEREST DEVELOPMENT REQUEST TO BE RELEASED FROM <br /> CONTRACT FOR PRIVATE REDEVELOPMENT <br /> Attached please find a letter from Mr . Bill Franke, <br /> President of Everest Group Ltd . requesting that the City <br /> release Everest Development Ltd . , Commercial Property <br /> Investments, Inc. , and Everest Investments Ltd. Partnership <br /> from their obligations as redevelopers under the Contract <br /> for Private Redevelopment . <br /> The request of Everest Group Ltd . is consistent with, and <br /> authorized by, Article 8. 2 of the Contract for Private <br /> Redevelopment, copy attached, and is further supported by <br /> the fact that Everest Development no longer has an interest <br /> in six of the seven buildings on the original Mounds View <br /> Business Park project site. Everest would still be <br /> obligated to fulfill their responsibilities for the <br /> remaining building they own, Building D, and for their <br /> activities in Mounds View Business Park South which are <br /> covered under a separate Contract for Private Redevelopment . <br /> • After receiving this letter I contacted Mr . Bob Dieke of <br /> Holmes and Graven, our tax increment counsel , who prepared <br /> the original Contract for Private Redevelopment and <br /> requested a written opinion from him regarding this matter . <br /> Attached please find a letter from Mr . Dieke dated <br /> January 5, 1990 which indicates that, "Assuming that the <br /> City is comfortable with the financial and other <br /> qualifications of the present owners of the redevelopment <br /> property, I believe that it would be appropriate for the <br /> City to execute the requested release. " As you may recall , <br /> the other owners of property within Mounds View Business <br /> Park include the California Public Employees Retirement <br /> System which owns Buildings A, F and G; Multi Tech who owns <br /> Building E and Taco Bell and Kentucky Fried Chicken, <br /> Divisions of PEPSICO who own their individual restaurant <br /> facilities . Considering the fact that the City has <br /> previously approved releases and the sale of these <br /> properties by Everest to these companies, it is clear that <br /> we were originally comfortable with the financial positions <br /> and other qualifications of these organizations and as a <br /> result, it would be appropriate for the City to consider <br /> releasing Everest from their obligations as requested. I <br /> will be happy to discuss this matter with you in further <br /> detail at your February 5th Agenda Session and provide you <br /> • with any further information should you so desire. <br /> DFP/MJS <br />