HomeMy WebLinkAbout09-25-1986RECORD OF OFFICIAL PROCEEDINGS OF THE COMMON COUNCIL
CITY OF ROCHESTER, MINNESOTA 273
Special Meeting No. 11 - September 25, 1986
Agenda
Item
A-1 President Postier called the meeting to order at 4:30 P.M., the
following members being present: President Postier, Aldermen
Bluhm, Canfield, Hunziker, Solinger and.Strain. Absent: Alderman
Allen.
The call of the special meeting was read by President Postier. The
same being called for the purpose of considering an amendment
to the D-5 Development Project? -and any other business the Council
may deem proper.
E-1 Discussion was held on the request to amend the D5 Contract. The ame
states that if the developer defaults on the contract, tle City will
retain the $1,000,000. ( to the extent of our damages ). At the
time of the transfer of the land, the City will reimburse the
$1,000,000. to the developer and will be provided with another
$1,000,000. letter of credit which secures the OLM's promise to
cover any cost overruns on the public improvements.
Alderman Hunziker asked Stevan Kvenvold, City Adm. if the new letter
of credit was clean and Mr. Kvenvold stated that it was. Alderman
Hunziker asked if the Mayo Clinic had signed a firm lease with
OLM and if so, for how much space. Gus Chafoulias of 930 8th St.
S. W. stated that the Mayo had an agreement drafted and that this
agreement needed another signature.to make this legal. But they
were confident that they would be able to get this soon. Bob Sago
of Minneapolis representing the Marketing end of this project stated
that he had many letters stating tenants that were interested in
locating in this complex. Nothing was firm on this yet, but he
expected it to be soon. Alderman Hunziker wanted to know when the
City would see a copy of the construction plans that will actually
be used in the project. Mr. Sago stated that they would be firmed
up soon. Alderman Hunziker wondered when would the developers get
the money. Stevan Kvenvol.d stated that it is his understanding
that they would get the money after they.have title to the land
and have met the other conditions that may have been attached to
the plan. At this time the City does not have access to the const-
ruction financing plan. Gus Chafoulias exlained to Alderman
Hunziker the formula that is used. It was noted that the entire
$1,000,000. was backed by Mr. Chafoulias.
Alderman Solinger asked " When.does the City start acquisition"?
Mr. Kvenvold stated that acquisiton would start next week. It would
begin with contacting business owners and offers would be negotiated
etc. Having no further discussion, Bluhm moved, Strain second
to adopt Resolution No. 560-86 approving the amendment. Ayes
(6), Nays (0).Motion carried.
It was noted by all the Council and voiced by Alderman Solinger
that even though he was opposed to the reduced amount of monies from
$2,000,000. to $1,000,000. he voted in favor of this because we have
been working on a development project for such a long time and he
stated that we finally have something that is firm, the developers
are serious and he is for the project.
Having no further business Strain moved, Canfield second to adjourn
meetiIMotiong
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