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0 -3- <br />members that, in keeping with his "new outlook on life," Arkell would <br />not be the lead partner on this project, but was negotiating to have. <br />Kloster Madsen take over 80% of the partnership. He told the <br />Secretary/Treasurer he anticipated the meeting of Pat Brinkman and <br />Kloster Madsen representatives, January 29th, would resolve all but two <br />or three of the questions the contractor has about the partnership which <br />could be resolved with the meeting with the H.R.A. Attorney and Executive <br />Director. If an impasse should develop after that meeting, Mr. Arkell <br />said he had a number of people, including a Texan, still interested in <br />the project because of the 1985 bonds and their tax status. <br />Mr. Soth confirmed that it was possible that the $400,000 Letter of <br />Credit should be reduced to $360,000 under the contract because Phase I <br />is completed. He also advised that if the H.R.A. is inclined to grant <br />the month extension, it would be a good idea to have $100,000 which is <br />"out of the pocket money" required to get an agreement from the developer <br />to waive the provision in the redevelopment agreement which says the <br />"developer isn't in default until the City has given a Notice of Default <br />after which Arkell would have 30 days to cure" in return. Mr. Arkell <br />indicated acquiesence with that being done and said his intent had always <br />been to meet the Friday deadline. <br />•Chairman Sundland pointed out to the developer the hardships some of the <br />persons present for the discussion were experiencing as business owners <br />in the center which Arkell is to develop. The Chairman then asked the <br />Kloster Madsen representative to affirm the impression he had gotten from <br />his own conversation with Mr. Ryan that "Kloster Madsen had a strong <br />interest in this project but it is of paramount importance to your <br />company that you get the questions you have answered." <br />James Johnson, Executive Vice President of Kloster Madsen, said the <br />Chairman had been correct in the impression he had gotten that the <br />contractor was "very much interested in being involved in the development <br />of the projects." Mr. Johnson apologized for Mr. Ryan's inability to be <br />present that evening but said he knew the Kloster Madsen President <br />had a long list of questions about the proposal which had been made to <br />the contractors. Not all of them were of the same importance but they <br />all needed answering so Kloster Madsen could make a reasonable and <br />intelligent decision in a short period of time. Mr. Johnson agreed the <br />extra 30 days would give his firm the cushion it needed to make that <br />decision but also indicated he perceived it was possible that <br />determination could be made in "two weeks at a minimum", if all those <br />questions were answered satisfactorily. <br />is <br />