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City Council Minutes 1990 10 16
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City Council Minutes 1990 10 16
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3/11/2021 2:31:32 PM
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City Council Records
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City Council Minutes
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10/16/1990
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2E2
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CCMIN 1990 10 16
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make sure through that those funds could not be <br />attached through a bankruptcy proceeding. Even if <br />we have control over those monies we only would <br />have about $83,000 that would be related to in <br />some fashion to the subdivider and there would <br />still be an additional $20,000 necessary. This <br />would have to be addressed. I feel this would take <br />at least two to three weeks. <br />Howard: Do you believe this would take place in two or <br />three weeks or even a month turn around for this, <br />if they in fact are not willing to deal in good <br />faith. <br />Griffiths: It is clear to me that alternative one requires <br />the cooperation of the subdivider and if they are <br />not willing to provide that cooperation, no it <br />won't be met. You can certainly direct your <br />staff and your attorney to put this as a matter of <br />priority. The question is what is their inten- <br />tion. <br />Sackett: Do we have the alternative to ask for $150,000 <br />Letter of Credit with an agreement that if they <br />were to make the improvements within an agreeable <br />time, given the weather conditions, that the <br />Letter of Credit would not be put into place? Is <br />that an alternative for us? <br />Griffiths: Certainly we could negotiate a Letter of Credit <br />and they have the obligation under the agreement <br />to provide that. We can seek to require that, we <br />can ensure that the wording of the Letter of <br />Credit adequately protects the interest of the <br />city with a specific time table and ability to <br />draw down at the end of that time table. This <br />again requires the cooperation of the subdivider. <br />Sackett: What if I were to make the motion that the Letter <br />of Credit be for $150,000, that they have two <br />months to establish an agreement and if they <br />don't do that then we seek litigation. The <br />penalty for us would be that we seek litigation on <br />this but they have two months to establish <br />$150,000 Letter of Credit with an agreement. If <br />they were to perform we would not collect on it, <br />but they would have to perform to finish the <br />improvements. ,The only thing that bothers me is <br />the weather and so I don't know what is <br />reasonable. If it were summer I would give them <br />90 days. <br />
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