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Leary asked Tom Hoyt, President of McStain, <br />questions with regard to their commitment to <br />completing the Via Appia project. Hoyt explained <br />that McStain is committed to the south half of Via <br />Appia this year in as much as can be accomplished <br />weather permitting and then do the north half in <br />mid-summer 1986. <br />Mayor Meier moved that Ordinance #863 be adopted. <br />Cussen seconded. Ordinance #863 was adopted <br />unanimously. <br />PERMIT ALLOCATION <br />INCREASE FOR McSTAIN Wanush outlined McStain's request to have their <br />building permit limit raised from 119 per year to <br />170 per year. McStain contents this increase is <br />necessary to order to give them the ability to <br />take advantage of` good market years since they <br />currently have no carryover provisions. This <br />ability to build more units in good years would <br />give McStain the security it needs to fund major <br />infrastructural improvements such as Via Appia. <br />In exchange for th.:. ~ increased allocation, McStain <br />would agree to c;uarantee the payment of the <br />capital portion of 100 permits even in poor <br />building years. A preliminary proposal was <br />drafted and given to Council for approval. <br />Leary suggested that although this proposal may <br />indeed be proper f'or Counci 1 to approve, Counci 1 <br />should not use as justification McStain's concerns <br />regarding their ability to react to the market. <br />"That's an unfortunate problem that they have, but <br />it is not one that: Council can deal with," Leary <br />stated. <br />In response to questions by Leary, Rautenstraus <br />stated that McSta.in is obligated to complete a <br />half-cross section of Via Appia. The full cross- <br />section is based upon development. There is not a <br />specific time period set at the present time. It <br />is an obligation on their part as subdivisions <br />come in and permits are issued and is based on <br />when the need occurs. Tying the allocation to <br />their completion of Via Appia is a good way of <br />setting a specific time line for Via Appia to be <br />completed, commented Rautenstraus, and would be <br />stated in the agreement. <br />Leary asked that staff look carefully into any <br />problems that may be created should McStain at <br />some point in the future fail to make a payment. <br />Mayor Meier moved that the concept of the proposal <br />to increase the permit allocation for McStain be <br />3 <br />