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-3- <br /> the: bank, was . well aware of . the time <br /> :pressures : he faced, but were <br /> waiting f.or..an opinion from their attorney; <br /> unfortunately, that attorney was the same- one who had- delayed the- <br /> Kloster-Madsen decision <br /> -he wasn' t sure Kloster-Madsen would: be the contractor for the project <br /> if Arkell continued as developer; <br /> reported he had gotten a message that the (Ted) Turner Construction <br /> Company is very interested in .looking at -the project because it was <br /> so similar to the ones they had constructed in the past; <br /> -it would be no problem to place the project bonds at 7-1/2% without <br /> a Letter of Credit. <br /> The Bloomington Councilmember added that: <br /> -there had been so many bonds issued before the January deadline,. <br /> contractors were shopping around for the- best deals; <br /> -Kloster-Madsen seemed to believe they could get a better deal <br /> with a project in Egan even though that community' s rental is <br /> already overbuilt; <br /> • -there were a good number of projects like St. Anthony' s for which <br /> bonds have been-issued, but 'no action taken for the same reason; <br /> -bonding had been issued for six projects in Bloomington but only one <br /> was being built yet, and the same was true of projects in Minnetonka <br /> and other communities as well; <br /> -he was convinced a deal could be worked out with another partner for <br /> this project because "St . Anthony is so uniquely located and the pro- <br /> ject has such attractive rent structures for this roject" ; <br /> s <br /> -the cash flows from the rents had to be acceptable for the project <br /> to succeed. <br /> H.R.A. Action <br /> Motion by Ranallo, seconded by Enrooth that, since the Housing and <br /> Redevelopment Authority perceives Arkell Development is now in default <br /> with the terms. of - its Redevelopment. Agreement for. Phases II and III of <br /> the Kenzie Terrace Redevelopment Project, the Executive . Director is <br /> directed to contact other developers to finish the final phases of that <br /> project. Mr. Childs - is also directed to consult with the H.R.A. <br /> Attorney as to the H.R.A. ' s legal position related to cashing in the <br /> . . . $100 ,00 Letter of Credit and whether.: it would be all right to wait until <br /> March. 20th - to cash that in. ..- - The.. H.R.A. further directs the Executive <br /> • Director to call a .Special H.R..A. meeting whenever that determinatin is <br /> made by staff. <br />