HomeMy WebLinkAboutgr00090_000048_pg250September 25, 1978 Page 4
Councilmember Baumgartner stated he would like to see the water billings list used
and have the issue put on as an agenda item for an agenda meeting, once the budget
sessions are over with Councilmembers Rowley, Ziebarth and Hodges agreed that they
would like to have the issue discussed further.
Councilmember Hodges stated that the City should check into the violators of the
food operations. Councilmember Baumgartner recommended that that item also be put
on a future agenda, after the budgets and elections, to give Staff time to research
it.
NORTHCREST PARK DEVELOPMENT
Mr. Beim of Pinecrest Properties explained that he had thought everything was set
on the development of his property and putting in the improvements but that he had
been surprised to find out that a security was required by the City and that he had
checked on a letter of credit or bond but was not able to get either one at this time.
He added that the fact that there is a ten year spread on the special assessments is
different then for other land owners. He added that he has agreed to everything but
the pay -off on the special assessments.
Administrator Achen explained that the City had never set these requirements before
but also pointed out that such a project had not been done in the City before. He
added that the fiscal agent had recouiiended that the City shorten the assessment
plan. He also stated that the City has been working with Mr. Beim for the past
two years and during that period has begun taking a stronger stand by requiring
developers to provide financial performance guarantees. He added that
staff had surveyed other cities and found that most cities will not put in public
improvements for a commercial project when there is only one property owner..
Administrator Achen explained that the financial guarantee is designed to relieve
the City of financial risk. Staff recommended an $845,000 bond to cover the first
five years of principal and interest on Mr. Beim °s estimated special assessments.
Although Mr. Beim says he cannot meet this, staff still recommends some amount of
security be required.
Mr. Beim pointed out that if the special assessments don't start until 1980, it
will give him a year to sell some of the property but that he could not guarantee
he would sell some.
Administrator Achen stated that the Attorney has determined that the development
agreement binds Mr. Beim to paying the special assessments. Attorney Meyers added
that the City has not been in such a situation before: with a major commercial/
industrial development that must generate enough sales to assure that the debt
service terms of the bonds can be met. He added that in the development agreement,
the developer agrees to pay the taxes and assessments as they come due and that the
best protection for the City is a letter of credit or bond. He added that another
method would be a promissory note from the developer, using the property as collateral.
Attorney Meyers stated that the 125% pay off of special assessments as land is sold
or developed would be an alternative assurance for the City.
Mayor Pickar stated that some cities allow 120 days from the issuance of a building
permit before the taxes and assessments are due at 125 %. Attorney Meyers stated
that they could count from the time of the sale or the issuance of the building
permit. He recommended that the City go with the time of the sale.