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<br /> ARDEN HILLS CITY COUNCIL - OCTOBER 13, 1998 4 <br />. the deadline of 30 days. He also pointed out that he has had the blue prints drawn up and they <br /> have been approved. <br /> Mr. Kruger presented his Contractor's Agreement stating the job will be completed within 30 <br /> days of starting and restated he is ready to begin this week. He has a friend who is an electrician <br /> and is prepared to complete the electrical work and have it inspected. He felt the house is ready <br /> for the work to begin, the project is in compliance, the funds are available, and it would be a <br /> shame to tear down Mr. Nixon's house. <br /> Councilmember Keirn asked what type of security there is for the loan. Mr. Kruger stated the <br /> loan will be in cash. Mr. Nixon noted it will be a short-term loan and the home will be the <br /> collateral. When the renovation is completed, he will be able to secure a home loan to pay back <br /> Mr. Wisner. Mr. Kruger indicated he has a legal certificate and Mr. Wisner has requested him to <br /> draft up the loan document indicating the terms. <br /> Councilmembcr Keim asked if Mr. Wisner will be recording a lien against the property. Mr. <br /> Kmger stated it will just be documented that, within a certain number of days following <br /> completion of the project, the loan will be paid back. Other lenders Mr. Nixon has spoken with <br /> have indicated, although they will not approve him for financing to rebuild the home, they will <br /> allow him to re-finance the home once it is completed. <br /> Council member Keim asked ifMr. Nixon has this information in writing. Mr. Nixon stated he <br />. does not, but will get this documentation if requested. Councilmember Keim noted, traditionally <br /> in this industry, he would have his loan commitment prior to obtaining temporary financing for <br /> construction. She indicated she is looking for a document indicating he is approved for <br /> permanent financing. <br /> Mr. Kruger indicated ifMr. Nixon does not ohtain permanent financing, Mr. Wisner is prepared <br /> to remain invested in the property, discuss putting the property up for sale, and recovering his <br /> investment that way. <br /> Councilmember Keirn stated she would like to see the money held in escrow. Normally, an <br /> escrow is held at a title company and the title company releases the funds to ensure there are no <br /> mechanic liens. She asked for confirmation that this is not the process being used. Mr. Kruger <br /> stated although this is correct, the accountant involved will be placing the $30,000 in an account, <br /> will issue the money for the building permit, and release the funds in phases. Additionally, <br /> $1,000 will be placed in another account for access in the event there is an emergency and the <br /> accountant cannot be reached. <br /> Councilmember Keim pointed out the accountant will be operating under Mr. Wisner's direction <br /> and ifhe decides to pull out of the deal, the City has nothing to fall back on. If the money is <br /> being held by a third party in escrow, there is an assurance it is available. Mr. Kruger noted the <br /> accountant will be the third party. Mr. Nixon noted Councilmember Keim is asking that the <br /> money be put into an escrow account itself to be drawn from. Mr. Kmger indicated he believes <br />. Mr. Wisner will not have a problem doing this. <br /> Councilmember Malone noted there have been a number of delays and this issue goes back a <br /> long time. He indicated the City operates under the State Building Code, as all cities do. The <br /> Council has worked with the property owner to work out the plans but the Council does not <br />