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<br />Brand: Mrs. Higgins pointed out in conversations with me by <br /> telephone, there is no way that she can have all the knowledge <br /> 9f all of the dealings of the four parties involved. She has <br /> investigated what was available to her. She hasn't done an in <br /> depth analysis of all their financial dealings, nor was she asked <br /> to do that. Ms. Higgins wanted to have that disclaimer. She <br /> wanted you to be aware that she had not researched all of their <br /> financial arrangements. From the research that she did, talking <br /> with their accountant, reviewing their records, there IS <br /> indication that there is more than enough money to meet these <br /> needs. <br />Cudlip: For Bondi & Co. to complete and certify to the City Council, <br /> it would take a two or three week audit. To give you a better <br /> feeling, Valley National Bank has committed and has signed a <br /> loan agreement for a substantial amount of money to complete <br /> this project. They feel there aren't other obligations that are <br /> going to preclude them from the return of their funds. <br />Griffiths: Bondi & Co. and Mrs. Higgins, the City's auditors, met on an <br /> emergency basis with us to try to review as best she could <br /> within this limited period the financial statements so that she <br /> could provide some response to the concerns expressed by the <br /> Council. <br />Franklin: These improvements are peripheral and are project serving. <br /> With the list of assurances and guarantees, plus the overriding <br /> ability to not issue a certificate of occupancy if they do not <br /> perform is about as much as we can get short of a negotiable <br /> letter of credit. I'm glad this occurred at a commercial <br /> development. I feel that we have seen a smattering of trends <br /> with regards to problems that the development community is <br /> having with loan guarantees. The problems the bankers are <br /> having with subdivision and improvement guarantees gives us <br /> an opportunity to examine a workable list and sets the tone for <br /> some future discussion regarding guarantees. My department <br /> in terms of the building division does have that ultimate say <br /> about opening the doors. We all hope that the project gets <br /> finished on time. <br />Howard: If this Council feels it is necessary, I would certainly like to see <br /> wording in this agreement that states that the City, by not <br /> requesting a letter of credit for this, does in no way set a <br /> precedent. This is a very special circumstance. I do not want <br /> to be deluged with people who do not have letters of credit. <br />