CC PACKET 06131989 - Laserfiche WebLink

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1 CITY OF ST. ANTHONY SPECIAL I-TEET114G OF THE CITY COUNCIL MAY 30 , 1989 The meeting was called to order at 6 : 05 p.m. with the Pledge of Allegiance led by Mayor Sundland . ROLL CALL Present : Enrooth , Marks , Makowske , Ranallo, Sundland Also Present : Susan VanderHeyden, Acting City Manager William Soth, City Attorney EVERGREEN TOWNHOUSES PROPOSAL Mayor Sundland led the discussion by requesting that Vern Hoium and Ursula Sheehy of Evergreen Development Corporation explain their current proposal . I•ir . Hoium reviewed the fact that Evergreen has considered several financing options , including pay-as-you-go tax increment financing, which would have a payback_ of between $250 , 000 and $270 : 000 to the developer and a reimbursement of $20 , 000 to the City for their out-of-pocket expenses . He stated that in working with the law firm of Dorsey and Whitney in attempting to draft appropriate documents , an impasse was reached when Dorsey and Whitney would not take a position as to whether or not such notes were tax exempt . He stated that counsel for Evergreen , Holmes and Graven, has stated that the notes can be made tax exempt, although some of the language in the documents drawn up by Dorsey and Whitney must be changed. Evergreen ' s impression is that Dorsey and Whitney feels that there is some exposure to the City if the notes are tax exempt , although Evergreen questions that assumption . Mr . Hoium summed up the City ' s alternatives as follows : 1 . pay-as-you-go tax increment financing; 2 . regular .G.O. bonds; 3 . abandonment of the project by Evergreen. He speculated that the cost of floating regular G.O. bonds would be in the neighborhood of $450 , 000 , and that the City might save itself $170 , 000 to $180, 000 with the pay-as-you-go tax increment financing proposal . He asked. that the City decide whether or not they want to take any risk .