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1 indicated that if Gaughan went with HUD a lot more time would probably <br /> 2 have to be taken before conditional commitment would be received. If <br /> 3 Gaughan did decide to obtain financing in this manner, it would <br /> 4 probably take 45 to 60 days before the bonds can be marketed. Before <br /> 5 the FHA would give final commitment the plans, specifications, etc. <br /> 6 would all have to be submitted. There are many steps in this process <br /> 7 and it would take at least 90 days to complete it. <br /> 8 Lincoln National Life from Ft. Wayne, Indiana, was also approached by <br /> 9 Gaughan. That company offered a partnership - 50% of the deal and <br /> 10 they would put up some of the equity. Mr. Krier indicated this would <br /> 11 probably be a better deal for the developer, but would also take 45-60 <br /> 12 days to close. <br /> 13 Mr. Krier feels the developers are "shopping" for the best interest <br /> 14 rates and this may be the main factor in the length of time it is <br /> 15 taking for the financing of this project. He feel sure, however, that <br /> 16 both the developers are still very interested in the project and do <br /> 17 not want to drop it. <br /> 18 Commissioner Ranallo indicated he is very concerned about the length <br /> 19 of time the potential developers are taking to get the project <br /> 20 started. He said that in actual fact, the project still does not have <br /> 21 a developer. He said he understood, as did the Minneapolis residents <br /> 22 concerned with the project, that the project was ready to go back in <br /> 23 October. The Commissioner questioned the sincerity of either <br /> 24 developer for the project. <br /> 25 Mr. Krier indicated he felt both developers were still very <br /> 26 interested and sincere in their efforts toward the project and <br /> 27 reiterated that they were both looking for the best interest rates for <br /> 28 the financing. <br /> 29 Mr. Krier agreed with the H.R.A. that the reality is "we have nothing <br /> 30 on the table. " There are options , however. <br /> 31 1 . Don' t deal with either Gaughan or Lang Nelson. <br /> 32 2 . Inform either or both developers that they have a <br /> 33 certain number of days to complete the financing. <br /> 34 3 . Inform either or both developers we would keep their <br /> 35 $10 ,000 (Gaughan has already given a check in this <br /> 36 amount to the City) and raise -the cost every 15 days <br /> 37 until the project is financed. <br /> 38 When Commissioner Marks wondered if we would really get the project <br /> 39 going with one of these two developers, Mr. Krier again insisted that <br /> 40 the developers are shopping the market and when the interest rates are <br /> 41 economically feasible they will commit to the project. <br /> 2 <br />