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1 Gaughan has reported having a Phoenix insurance company, whose <br /> 2 representatives will be coming to St. Anthony the next day to look <br /> 3 over the site, which had been confirmed by Piper Jaffray. The <br /> 4 consensus was that the insurance company route was preferable to <br /> 5 waiting the necessary period it would take for H.U.D. to approve <br /> 6 financing. Sundland pointed to the insurance company who had come <br /> 7 forth to put up 570 million dollars towards the development of the <br /> 8 Bloomington Mega Mall. He perceived this might provide the needed <br /> 9 incentive for Gaughan to put up the $40, 000. <br /> 10 The presence of Diane and Robert Slick of the Alternative during the <br /> 11 recess was noted by Sundland, who said they were understandably <br /> 12 concerned about how the project was progressing. <br /> 13 Childs concluded his report by commenting that he had to believe each <br /> 14 of the developers when they said they were waiting .for interest rates <br /> 15 to come down which was happening right now. Ranallo pointed to <br /> 16 Rothchilds ' rates which had dropped to 9-3/4 February 23rd from 10-1/2 <br /> 17 which they had been for a long time. <br /> 18 Soth said staff had told the developers that the H.R.A. expected some <br /> 19 money to be put up as a measure of their confidence that the project <br /> 20 would be done. <br /> 21 Ranallo indicated he perceived "$20 ,000 was better than nothing" and <br /> 22 he suggested giving staff the power to negotiate that kind of a deal <br /> 23 with Gaughan for 45 days. Soth posed the possibility that a bidding • <br /> 24 war might ensue between the two developers, which was generally agreed <br /> 25 might be advantageous to the project. Soth told Makowske that if the <br /> 26 insurance company indicated an interest in the project, Gaughan would <br /> 27 be told they could put up their Letter of Credit, which would be <br /> 28 returned if that method of financing failed, but they would lose the <br /> 29 $20 ,000 . <br /> 30 It was agreed that a short H.R.A. meeting would be called if events <br /> 31 warranted it. <br /> 32 ADJOURNMENT <br /> 33 Motion by Marks, seconded by Enrooth to adjourn the H.R.A. meeting at <br /> 34 10 : 30 P.M. for a Council Executive Session, which followed <br /> 35 immediately, related to direction to staff regarding the City' s <br /> 36 lawsuit against the U.S. Army et al in connection with St. Anthony' s <br /> 37 water contamination. problems. <br /> 38 Motion carried unanimously. <br /> 39 Respectfully submitted, <br /> 40 Helen Crowe, Secretary <br /> 41 :cjk • <br /> 2 <br />