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ARDEN HILLS CITY COUNCIL -FEBRUARY 12, 2007 8 Mayor Harpstead asked if the Preliminary Development Agreement, through its reference to the City's Public Financing Policy, obligate the City to any general or specific form of Public Financing Assistance, outside of the normal and customary processes utilized to consider any form of public financial assistance? Mr. Bubul responded no. Councilmember Holmes note unless they change their rescission requirement, she believed it would affect Mayor Harpstead's question number 2. Mr. Bubul responded this could be revised. Mayor Harpstead recommended they put a motion on the floor that they move this for approval with the understanding they will now discuss it and then move to refer it to either a work session or a subsequent Council meeting, which would put if off of this meeting's agenda without approval. Councilmember Holmes asked if they could not approve it. Mayor Harpstead responded it would make no difference. Councilmember Holmes stated she believed there were too many questions and it should not be approved. Councilmember Holden asked if they could refer this to a work sesSIOn directly. Mayor Harpstead stated this would not allow them to discuss this tonight. MOTION: Mayor Harpstead moved and Councilmember McClung seconded a motion to approve the Preliminary Development Agreement and First Amendment to the Funding and Guaranty Agreement between the City and CRR, LLC for the purchase and redevelopment of the TCAAP property, subject to Council approval of proposed budget and final approval by legal counsel to allow discussion. Mayor Harpstead asked if Council should entertain the option of the earnest money of 2.5 million dollars. Councilmembers Holden and Grant stated they would be in favor, but Councilmember Grant stated it should be noted that there had to be a "light at the end of the tunnel". Councilmember McCluug stated it was his opinion that he did not think they would get to this point where this would come into play, however, he wanted some flexibility for the City and he wanted to see language that would allow them to buy CRRs stake if they rescinded and assume the responsibility to continue on with the process. Councilmember Holden requested clarification on the timeline. Mr. Bubul explained the timeline. Chuck Diessner, CRR, stated the provision they proposed and negotiated basically gave the City 90 days. He indicated they would give the City a 90 day notice and if within the 90 days the City refunds the eamest money then the OTC would still stay in effect.