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•1 <br />2 <br />3 <br />4 <br />5 <br />6 <br />7 <br />8 <br />9 <br />Gaughan has reported, having a Phoenix insurance company, whose <br />representatives will be coming to St. Anthony the next day to look <br />over the site, which had been confirmed by Piper Jaffray. The <br />consensus was that the insurance company route was preferable to <br />waiting the necessary period it would take for H.U.D. to approve <br />financing. Sundland pointed to the insurance company who had come <br />forth to put up 570 million dollars towards the development of the <br />Bloomington Mega Mall. He perceived this might provide the needed <br />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 1071/2 <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 />42 he suggested giving staff the power to negotiate that kind of a deal <br />3 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 <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 />09 <br />39 Respectfully submitted, <br />40 Helen Crowe, Secretary <br />W1 :cjk <br />2 <br />Motion carried unanimously. <br />