HRA MINUTES 02081983 - Laserfiche WebLink

Home Browse Search

S= Tony Vavoulis • (Knutson Co.) Have we read the contract for private redevelopment, the redevelopers agreement, do we agree with all the provisions of that \ contract? Tony Vavoulis (Knutson Co.) We have read it and we agree basically with the contract. We are looking to negotiate some of the points and the next question that you have in regard to the letter of credit, I guess that is one of the items that we are particularly sensitive to. The developer's agreement had a point of not to exceed, I_guess we would need to be talking about that and with regard to what our obligations would. be. Clearly, we would not be able to post a letter of credit for the full 25% of all your costs that you would be incurring in the acquisition of.phase 2. That would not enable us to perform business as usual in either phase 1 or our company in general, so that, I guess, is a particular item of negotiation. Also, how the developer's agreement is structured in regard to phase 1 and phase 2 would also be something,that we would like to talk about more. It talks about it all at once. We are very sincere about moving forward.on the entire project, but everything is based on the success of phase 1. Phase 1 has to be successful to enable phase 2 and I'm sure you understand that and.we would have to get some basic agreement on that going forward. Is there any further questions on that subject? Tony Vavoulis (Knutson Co.) Question # 6 is will you be using a housing management corporation for the homeowners association and who do you plan to use? Tony Vavoulis •(Knutson Co.) Yes, we would, the Knutson organization would not be the managing entity in this area. We have found this area an area of great specialization and we admit at this point that it is not our area of specialization. We have not come.to any agreement at this time with any management organization. We currently, the way we did it on Lakeshore Drive, was that prior to occupancy, roughly 6 months prior to that, we on behalf of the homeowners association, is the role and responsibility that we have as being the developer entered into an agreement with the Health Central management group and.they then are acting as the manager on Lakeshore Drive. They have that contract. All of the employees, management employees, are employees of the Health Central organization. They are not employees of Lakeshore Drive condominiums. That was some- thing that we felt was very important that they be responsible for the manpower because manpower can be a major management problem in itself and we don't want to add that to the resident's concerns, particularly because of its nature of being an elderly project. Certainly, at this point, Health Central would be the leading candidate as far as our conversations, but we do not have any agreement other than a good working relationship that we developed in Richfield. Tony Vavoulis ,Knutson Co.) What will we do if 202 financing is not available? Tony Vavoulis Knutson Co.) I addressed that briefly before. Not being available and not being successful are both possible resultants. If we were simply not successful and there was financing, I think we would probably try again the following year. If it just did not develop or Washington • eliminated it, of course, which is a possiblity or did not make it available in this geographical location which is also a possibility, we would just attempt to proceed with our other aspect of phase 2,