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• <br />C7= TY O F S T. ANTHONY <br />HOU S I N G AND F2 E D EVE L O PMENT <br />AUTHOR = TY M = NUT E S <br />NOV EMB E R 2 4, 1 9 8 7 <br />1 The meeting was called to order at 5:40 P.M. by Chair Sundland. <br />Present for roll call: Sundland, Vice Chair Enrooth, Secretary/ <br />Treasurer Marks, and Commissioners Ranallo <br />and Makowske. <br />5 Also present: David Childs, Executive Director <br />6 William Soth, H.R.A. Attorney <br />7 Richard Krier, Development Advisory Services, <br />8 H.R.A. Planning Consultant <br />9 NOVEMBER 10, 1987 H.R.A. MINUTES <br />10 Motion by Ranallo, seconded by Marks, to approve as presented. <br />11 Motion carried unanimously. <br />12 <br />13 <br />•14 <br />15 <br />16 <br />17 <br />18 <br />19 <br />20 <br />21 <br />22 <br />23 <br />24 <br />25 <br />26 <br />27 <br />28 <br />29 <br />30 <br />31 <br />32 <br />33 <br />34 <br />35 <br />n <br />U <br />Mr. Krier reported on discussions with Mr. Alan Hamel, Gaughan <br />Company President, regarding the problems his firm faced on October <br />19th when they received a dramatic raise in both the rated and <br />unrated interest rates for the Revenue Housing Bonds and bank charges <br />for backing their Letter of Credit. Mr. Krier indicated the problem, <br />as he saw it, was that the City now had a redeveloper who had the <br />capability for putting up his own Letter of Credit or getting financ- <br />ing if any one could, but for business reasons, he decided to delay <br />executing the redevelopment Agreement with the H.R.A. until he had <br />first secured either an acceptable FHA conditional commitment or <br />letter of credit backing like that being negotiated with the Des <br />Moines Midland Bank, as reported in Mr. Hamel's November 23rd letter <br />to the H.R.A., distributed before the meeting. <br />Mr. Krier indicated he had to assume further financial help from the <br />City to move the project along was not an issue with the Gaughan <br />Companies, but rather, had to agree with Mr. Soth's assessment that <br />the redevelopers had the financial strength to do the project by <br />themselves but the interest rates had gone so high the numbers no <br />longer worked for them to make a profit on the project. The Attorney <br />then suggested the City should try to get Arkell completely out of <br />the picture by offering a settlement which, because of his present <br />situation, he might be tempted to take. <br />