City Council Minutes 1991 08 20 - Laserfiche WebLink

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complete the project. It is a vacant piece of undeveloped ground and there are no City services up to the property. Hopefully, we will have everything completed in the next 8 or 9 weeks in order to provide occupancy to K-Mart by December Z4 of this year. The reason this is different from other projects is that it is a commercial project. You are not concerned about residences not being served. We have K- Mart and King Soopers who have been looking over our shoulders making sure we complete everything to their standards or better. We have the City, who will be inspecting and reviewing everything. We also have our construction lender. The developer in this business has almost become a conduit, everyone else is making sure you do your job for you. In the past we have done quality projects and have always completed and done everything that we have proposed to do. With K-Mart, if we don't have the public improvements, the City doesn't have to issue us the CO.. It is mandatory that we get all the public improvements in. We have met with the City Auditor and City Manager to review personal financial statements. You have a copy of the letter addressing that question. I would like to thank the City Council for working with us on this issue and spending a great deal of time working with our construction lender. With the new federal regulations concerning real estate, just getting a construction loan is difficult. I would appreciate if you would approve the amended subdivision agreement tonight. Griffiths: The City requires as part of its standard subdivision agreement that a developer provide either a letter of credit or cash to guarantee the public improvements as part of the subdivision. What is being suggested here is an alternative to that, an amendment to the standard subdivision agreement which would provide for a letter of assurance from the lender, the Valley National Bank of Arizona. Essentially what this does is set aside the portion of the loan proceeds dedicated to payment of the public improvements. Those portions of the loan proceeds would not be paid to the borrower, Louisville Plaza, Inc., until such time as the City states that the improvements were constructed to the satisfaction of the City, in accordance with the subdivision agreement. If the borrower for some reason does not fulfill the obligations under the subdivision agreement by December 24, 1991, then the City will have the opportunity to utilize the remaining loan proceeds to complete those improvements. This letter of assurance is not of the same quality or will not provide the same level of protection to the City as does the letter of credit or cash. I was authorized to work with the bank, developer, auditor, and City staff to come