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The worst -case scenario is where, for unforeseen reasons, a lien remains in place. If the lien remains in <br />place, the I.R.S. or Chase Bank could foreclose and sell the Bay View property. That foreclosure sale <br />would include the City's streets, stormwater ponds, and private lots. To guard against this potential risk, <br />Bay View agreed to provide the City with a Title Insurance policy equal to 150% of the amount estimated <br />as necessary for the City to buy back the streets and the stormwater pond. However, no insurance policy <br />can allow the City to replace the Conditional Use Permit or some of the easement features currently <br />controlling the property. <br />Conversely, if the City requires the Developer to wait weeks or months until the liens are cleared from <br />title, the approach of pall and Winter will likely cause the Developer to lose a construction season. They <br />have Buyers and Builders waiting to purchase lots and construct homes. Pushing construction until next <br />year means they may lose some of these sales. <br />Staffs assessment is there is little risk of a worst -case scenario event. However, in the occurrence of <br />that worst -case scenario, insurance proceeds would cover the City's monetary loss and almost all of the <br />loss of the City's land use controls on the site. <br />ACTION ITEM: The course of action set forth in this memo is set forth in the attached Resolution 19- <br />025. If the Council desires to adopt this course of action, please adopt Resolution 19-025. <br />