HomeMy WebLinkAboutHRA MINUTES 12081987• C STY O F S T_ ANTHONY
HOU S S N G AND REDEVELOPMENT
AUTHOR S TY M 2 NUTS S
D E C EMB E R 8, 1 9 8 7
1 The meeting was called to order at 10:51 P.M. by Chair Sundland.
2 Present for roll call: Sundland, Vice Chair Enrooth, Secretary/
3 Treasurer Marks, and Commissioners
4 Ranallo and Makowske.
5 Also present: David Childs, Executive Director
6 William Soth, H.R.A. Attorney
7 NOVEMBER 24, 1987 H.R.A. MINUTES
8 Motion by Marks, seconded by Ranallo to approve as presented.
9 Motion carried unanimously.
10 CLAIMS
11 Motion by Ranallo, seconded by Marks to approve payment of
012 $2,294.29 to the Dorsey S Whitney law firm for legal services
13 rendered to the H.R.A. during October, 1987.
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Motion carried unanimously.
15 KENZIE TERRACE REDEVELOPMENT PROJECT UPDATE
16 The Executive Director indicated he and Mr. Soth had assumed Mr.
17 Krier would be present to bring the H.R.A. up to date on the
18 above, but in his absence they would report on events in which
19 they had been involved.
20 Arkell Refuses H.R.A. Settlement Offer
21 Mr. Childs reported he and Chair Sundland had met with Mr. Arkell
22 the previous day and he had refused their offer to allow the City
23 to buy him out of the deal but felt that a much higher number
24 would tempt the redeveloper to settle. The reason given for not
25 settling was that Mr. Arkell believed the Gaughan Companies
26 would eventually do the final phases of the project and he had
27 already told his creditors he would be getting $400,000 interest
28 on the bonds when that happened.
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1 The Executive Director said the original architects on the
2 project, Montgomery and Tushie, had put a $95,000 lien on the
3 Saliterman property when Mr. Arkell had failed to pay them for
4 their services. Mr. Soth indicated he had told the architects he
5 thought the chances that action would be considered to be legal
6 to be "very, very slim".
7 He also recommended that, although Mr. Arkell had told City
8 officials he knew he would be able to settle with them for much
9 less, lien removal should only be negotiated as part of a total
10 settlement package with the Arkand Partnership. The Attorney
11 indicated agreement with Commissioner Ranallo's suggestion that
12 the H.R.A. not pursue a settlement with Mr. Arkell until further
13 information related to Gaughan's activities is available.
14 In reference to Mr. Arkell's assumption that the Gaughan Company
15 was "just stalling", Mr. Childs indicated he knew the developers
16 were making a real effort to get financing for the project since
17 they were talking to several different lenders at this time.
18 Attorney Perceives Lang/Nelson Still Interested in Doing the
19 Project
20 The firm's finance officer had called him that day, Mr. Soth
4921 reported, saying Mr. Krier had tried to set up a meeting with him
22 right after the last H.R.A. meeting. Mr. Soth said he had told
23 Paul Brewer the H.R.A. was talking to other developers because
24 Gaughan had not yet signed an agreement with them to do the
25 project. The LaNel Financial Group President had responded by
26 indicating Lang/Nelson would be getting back to the H.R.A. soon.
27 ADJOURNMENT
28 Motion by Ranallo, seconded by Enrooth to adjourn the meeting
29 at 11:01 P.M.
30 Motion carried unanimously.
31 Respectfully submitted,
32 Helen Crowe, Secretary
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