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CITY OF ST. ANTHONY HOUSING AND REDEVELOPMENT AUTHORITY MINUTES September 11 , 1984 The meeting was called to order by Chairman Sundland at 8:59 P.M. Present for roll call : Sundland, Vice Chair Enrooth, Secretary/Treasurer Marks, and Commissioners Ranallo and Makowske. Also present: David Childs, Executive Director; William Soth, Attorney, John Arkell and Steve Yurick, Developers for the Kenzington Condominiums; and Richard Krier, Consultant. Motion by Commissioner Ranallo and seconded by Secretary/Treasurer Marks. to approve as submitted the minutes of the Housing and Redevelopment Authority meeting held August 28, 1984. Motion carried unanimously. The developers told the H.R.A. members construction on the condominium project had been delayed by the last minute withdrawal of construction financing by the Rothchilds Company, even though that firm had submitted a letter of commitment- to the project and had instructed the developers to proceed with construction when the project was over 50% sold. Mr.. Arkell indicated he perceived all lenders have become • very apprehensive about financing -condominiums because so many of these projects' have gone sour nationwide. Applying this experience to the Kenzington was completely unjustified in the eyes of the developer because he perceives the project should be a "piece of cake", with 60 units already sold and 59 of these to be paid in cash. Mr. Arkell said he is also frustrated by the lender's objections to "contingency sales" since he had been able to inform them that Edina Realty was guaranteeing to purchase any homes which did not sell at market value. Another strong plus for the project, the developer said, is the fact that all subcontractors are committed to the project and Kraus Anderson had agreed to early construction. Mr. Yurick told the H.R.A. members none of the buyers had been lost by the delay and eight of those who had already sold their homes have made some very creative arrangements for residency until the condominiums are available. The developer indicated he has been in close contact with all the buyers and believes those who have not sold their homes are convinced February and March would be better months than November and December for the sale of their property. Chairman Sundland and the Secretary/Treasurer both stated they perceived the . H.R.A. is very committed to this project, considering themselves partners in the endeavor; and had no interest at this time in calling in Arkell 's Letter of Credit. Com- missioner Ranallo inquired of- the developers whether there was anything further the H.R.A. could do to assure the success of the project. The developers were requested to continue to keep them closely apprised of their progress in finding a funding source. Mr. Arkell indicated he was certain this would be attained within thirty days. • Mr. Krier .reminded the H.R.A. members that he had war.ned .them at.the outset that there 'might:. be .many ups and downs before the project was accomplished. He cited other projects which have taken a lot longer; Riverplace,, which..is only 50% sold