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r • C 2 ':r'7Z Off' ST a ANr-rHON.Y gi US =NG AND : REDEVELOPMENT . AUTHOR 11 TY' M T NUT E S NOVEMB E R 2 4 1 9 8 7 1 The meeting was called to order at 5 : 40 P.M. by Chair Sundland. 2 Present for roll call: Sundland, Vice Chair Enrooth, Secretary/ 3 Treasurer Marks , and Commissioners Ranallo 4 and Makowske. 5 Also present: David Childs, Executive Director 6 William Soth, H.R.A. Attorney 7 Richard Krier, Development Advisory' Services, 8 H.R.A. Planning Consultant 9 NOVEMBER 10, 1987 H.R.A. MINUTES 10 Motion by Ranallo, seconded by Marks , to approve as presented. 11 Motion carried unanimously. 12 Guidance Sought, Re: 'Alternatives ' for Moving Final Phases of Kenzie •13 Terrace Redevelopment Project Ahead 14 Mr. Krier reported on discussions with Mr. Alan Hamel, Gaughan 15 Company President; - regarding the problems his firm faced on .October 16 19th when they received a dramatic raise in both the rated and 17 unrated interest rates for the Revenue Housing Bonds and bank charges 18 for backing their Letter of Credit. Mr. Krier indicated the problem, 19 as he saw it, was that the City now had a redeveloper who had the 20 capability for putting up his own Letter of Credit or getting financ- 21 ing if any one could, but for business reasons, he decided to. delay 22 executing the redevelopment Agreement with the H.R.A. until he had 23 first secured either an acceptable FHA conditional commitment or 24 letter of credit backing like that being negotiated with the Des 25 Moines Midland Bank, as reported in Mr. Hamel ' s November 23rd letter 26 to the H.R.A. , distributed before the meeting. 27 Mr. Krier indicated he had* to assume further financial help from the 28 City to move the project along was not an issue with the Gaughan 29 Companies, but rather, had to agree with Mr. Soth' s assessment that 30 the redevelopers had the financial strength to do the project by 31 themselves but the interest rates had gone so high the numbers no 32 longer worked for them to make a profit on the project. The Attorney 33 then suggested the City should try to get Arkell completely out of 34 the picture by offering a settlement which, because of his present 35 situation, he might be tempted to take.