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-3- <br />-the bank was well aware of the time pressures he faced, but were <br />waiting for an opinion from their attorney; <br />-unfortunately, that attorney was the same one who had delayed the <br />Kloster -Madsen decision; <br />-he wasn't sure Kloster -Madsen would be the contractor for the project <br />if Arkell continued as developer; <br />-reported he had gotten a message that the (Ted) Turner Construction <br />Company is very interested in looking at the project because it was <br />so similar to the ones they had constructed in the past; <br />-it would be no problem to place the project bonds at 7-1/2$ without <br />a Letter of Credit. <br />The Bloomington Councilmember added that: <br />-there had been so many bonds issued before the January deadline, <br />contractors were shopping around for the best deals; <br />-Kloster-Madsen seemed to believe they could get a better deal <br />with a project in Egan even though that community's rental is <br />already overbuilt; <br />• -there were a good number of projects like St. Anthony's for which <br />bonds have been issued, but no action taken for the same reason; <br />-bonding had been issued for six projects in Bloomington but only one <br />was being built yet, and the same was true of projects in Minnetonka <br />and other communities as well; <br />-he was convinced a deal could be worked out with another partner for <br />this project because "St. Anthony is so uniquely located and the pro- <br />ject has such attractive rent structures for this project"; <br />-the cash flows from the rents had to be acceptable for the project <br />to succeed. <br />H.R.A. Action <br />Motion by Ranallo, seconded by Enrooth that, since the Housing and <br />Redevelopment Authority perceives Arkell Development is now in default <br />with the terms of its Redevelopment Agreement for Phases II and III of <br />the Kenzie Terrace Redevelopment Project, the Executive Director is <br />directed to contact other developers to finish the final phases of that <br />project. Mr. Childs is also directed to consult with the H.R.A. <br />Attorney as to the H.R.A.'s legal position related to cashing in the <br />$100,00 Letter of Credit and whether it would be all right to wait until <br />March 20th to cash that in. The H.R.A. further directs the Executive <br />•Director to call a Special H.R.A. meeting whenever that determinatin is <br />made by staff. <br />