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• C = TY (D IF ST m ANTHONY <br /> H OU S =N G AND RE D.EVE L O PMF NT <br /> AUTHOR2 TY M2NUTES .. �-'. <br /> NOVEMBER <br /> 24 , 1 3'8 7 <br /> 1 The meeting was called to order at 5 : 40 P.M. by Chair Sundland. . <br /> 2 Present- for- roll call: Sundland, Vice Chair Enrooth, Secretary/ <br /> 3 Treasurer Marks , and Commissioners Ranallo <br /> 4 and Makowske. <br /> 5 Also present: David Childs, Executive Director <br /> 6 William Soth, H.R.A. Attorney <br /> 7 Richard Krier, Development Advisory Services, <br /> 8 H.R.A. Planning Consultant <br /> 9 NOVEMBER 10 , 1987 H.R.A. MINUTES <br /> 10 Motion by Ranallo, seconded by Marks , to approve as presented. <br /> 11 Motion carried unanimously. <br /> 12 Guidance Sought, Re: Alternatives for Moving Final Phases of Kenzie <br /> WTerrace Redevelopment Project Ahead <br /> 14 Mr. Krier reported on discussions with Mr. Alan Hamel, Gaughan <br /> 15 Company President, regarding the problems his firm faced on October <br /> 16 19th when they received a dramatic raise in both the rated and <br /> 17 unrated interest rates for the Revenue Housing Bonds and bank charges <br /> 18 for backing their Letter of Credit. Mr. Krier indicated the problem, <br /> 19 as he saw it, was that the City now had a redeveloper who had the <br /> 20 capability for putting up his own Letter of Credit or getting financ- <br /> 21 ing if any one could, but for business reasons, he decided to delay <br /> 22 executing the redevelopment Agreement with the H.R.A. until he had <br /> 23 first secured either an acceptable FHA conditional commitment or <br /> 24 letter of credit backing like that being negotiated with the Des <br /> 25 Moines Midland Bank, as reported in Mr. Hamel' s November� 23rd letter <br /> 26 to the H.R.A. , distributed before the meeting. <br /> 27 Mr. Krier indicated he had to assume further financial help from the <br /> 28 City to move the project along was not an issue with the Gaughan <br /> 29 Companies, but rather , had to agree with Mr. Soth' s assessment that <br /> 30 the redevelopers had the financial strength to do the project by <br /> .31 themselves but the interest rates had gone so high the numbers no <br /> 32 longer worked for them to make a profit on the project. The Attorney <br /> 33 then suggested the City should try to get Arkell completely out of <br /> 34 the, picture by offering a settlement which, because of his present <br /> 35 situation, he might be tempted to take. <br /> • <br />