HRA MINUTES 11241987 - Laserfiche WebLink

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1 Mr. Soth pointed out that $23,000,000 had always been more than was 2 needed when compared to the $8,500,000 in project costs, so the • 3 $11,500,000, which remain in revenue bonds after December 1st, should 4 certainly be adequate to get the project done. 5 He was instructed to tell the Gaughan Companies the H.R.A. wanted to 6 schedule meetings with them every two weeks, starting with a meeting 7 after the Council's December 8th meeting, so they could keep track 8 of their financing progress and was requesting the lines of communica- 9 tion be kept open between meetings. The planner indicated the only 10 reason the redeveloper was not present for that meeting was because he 11 had requested they not come. He said he really believed both 12 Gaughan and Piper Jaffray, who were placing the bonds, were working 13 hard on the deal, but having the redeveloper report back every two 14 weeks might apply pressure on Piper to get the financing package put 15 together as soon as possible. 16 It was agreed that further contact with the other developer who had 17 proposed to do the project would not be completely foreclosed in the 18 meantime because the H.R.A. wanted the Gaughan Companies to understand 19 the City intends to get the project done one way or another since 20 they have not signed the agreement as scheduled. 21 It was further agreed that the Mayor and Mr. Childs would broach Mr. 22 Arkell regarding a settlement. Mr. Arkell would be advised that the 23 H.R.A. needs the extra $300,000 now that the drop in prime rate had 24 created a problem with getting another redeveloper and the landowner 4V5 was threatening to sue the City for that failure. 26 The H.R.A. meeting was adjourned at 6:35 P.M. with the Council meeting 27 opening at 7:30 P.M., as scheduled. 28 Respectfully submitted, 29 Helen Crowe, Secretary 30 :cjk • 2