HomeMy WebLinkAboutgr00090_000048_pg251September 25, 1978 Page 5
Mr. Beim stated he would be more comfortable with the time of the sale rather than
the issuance of a building permit as he could have a six month construction period
before completing a building and closing on the property.
Attorney Meyers stated that one of the Council's fears is that the land might sit
empty for two or three years and the developer not pay the taxes. He added that
the City must be able to assure itself that it will know about the sale of the
property as it occurs, and that arrangements could be made at the time of the
issuance of the building permit to pay the assessments.
Mayor Pickar suggested that the assessments be tied into the issuance of an occupancy
permit. Attorney Meyers replied that an occupancy permit is not as strong a legal
tool to use.
Administrator Achen suggested that at the time the building permit is applied for
an agreement be executed to assure that payment is made at some specified date such as
at the time of issuance of the occupancy permit.
Mr. Beim stated that he would like to have some input in determining the time when
special assessments on a parcel must be paid.
Mayor Pickar asked if Mr. Beim could make a decision on this matter within
the next two weeks. Mr. Beim replied that he has a partner in the project, to
whom everything is new and that he would like time to study the 125% pay -off rate.
He stated that he could get back to Administrator Achen within the next few days
to let him know what they will be doing.
Mayor Pickar stated he would like the item put on the agenda for the next meeting,
to allow time to work everything out. Administrator Achen replied that several items
were pending, such as a construction contract which has to be signed by October 6.
He asked that the Council make some recommendation now.
Attorney Meyers stated that the Council could authorize the Clerk /Administrator
and Mayor to sign the development agreement by October 6.
Councilmember Ziebarth stated he would like to agree in principle and look at it
further at the next agenda session. He added that he was concerned with going from
requiring $845,000 to no bond or letter of credit, and 125% assessment pay -off.
Councilmember Rowley stated that she agreed with Councilmember Ziebarth and that
some type of up front money should be required to protect the City.
Administrator Achen stated that he had discussed the issue with Mr. Beim and that
Mr. Beim had told him he could not come up with any financial security. Administrator
Achen added that he personally feels the City should have at least the first year's
payment guaranteed.
Councilmember Baumgartner stated that he also agreed that some type of security should
be required. He added that the 125% pay -off would not protect the city if no
development occurred until 1981 or 1982.