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I I. I I I I I I I I. I I I I I I I Ie I MINUTES CITY OF ARDEN HILLS, MINNESOTA WORKSESSION JUNE 16, 1994 4:30P.M. - CITYHALL - CONFERENCE ROOM CALL TO ORDERlROLL CALL Pursuant to due call and notice thereot; Mayor Sather called to order the City Council worksession at 4:30P.M. Present: Councilmembers Beverly Aplikowski, Paul Malone, Dennis Probst and Dale mcks; City Administrator Dorothy A Person; City Accountant, Terry Post; Community Planning Coordinator, Brian Fritsinger; Park &Recreation Director, Cynthia Severtson; Public Works Superintendent, Dan Wmkei; Recording Secretary, Kim Moore-Sykes; Guest, John McClung. ADOPT AGENDA MOTION: Councllmember Hicks moved and seconded by Councilmember Malone to adopt the June 16, 1994 work session agenda as submitted. Motion carried unanimously (5-0). REOUEST BY McCLUNG DEVELOPMENT FOR COUNCIL FEEDBACK REGARDING THE OPTION OF TEMPORARY CITY FINANCING OF INFRASTRUCTURE: Mr. John McClung of McClung Development requested Council feedback regarding whether a development agreement for his fourth addition is necessary at the 125% rate. One option discussed was that the City would do all of the work, including engineering, construction and inspection of the project. McClung would then be assessed those costs by the City and he would make the payments. Mr. McClung felt this would give him more flexibility in being able to market the properties. If the City can't agree with this idea, he then wanted to know what his options would be. The City Administrator advised that before there could be a change to an ordinance, the Council would normally make a change in policy. Councilmember Malone stated that the City would be very reluctant to make that kind of a change to the City ordinance, but suggested that the ordinance did allow the City to advance time and money on a project like this provided that the owner, in this case, Mr. McClung, could arrange for a security deposit or escrow account. It was also suggested to him that his bank provide a letter of credit for him. A letter of credit could be structured such that it would diminish as Mr. McClung pays the assessments on those lots. McClung asked what responsibility he has to the City ifhe decides to finance this himself. It was stated that ifhe does finance the project himselt; other than inspection and review of the plans and the specs from the project, the City would not be involved in the financing of the project from another source. Mr. McClung would be responsible for the up front (soft) costs incurred by the City for the inspection of the project, i.e. legal costs and any other related costs. Mr. McClung thanked the Council for its time and advice.