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Regular City Council Meeting Monday, September 08, 2008 Page 20 Councilmember Willmus questioned if Mr. Cann had been in contact with U.S. Bank, and if so, what their response had been. Mr. Cann responded that he had written several letters to the owner's attorney, and had not received any responses to-date. Councilmember Ihlan provided her interpretation of the regulatory agreement signed by the Mayor and City Manager on behalf of the City, and opined that the City had authority, under the terms of enforcement, and a responsibility under the agreement and under State Statute to make sure the agreement and restrictions were followed. Councilmember Ihlan further opined that, at a minimum, the City Council needed information to fully investigate the situation. Councilmember Ih- lan sought further documentation from staff and/or the developer, including status to the IRS and MHFA by the developer for applying for tax credits, and what time the City had remaining for an investigation if the credits had yet to be issued. Councilmember Ihlan opined that it was her preference that the situation could be discussed among all parties to reach resolution. Councilmember Ililan opined that her personal intent in approving the bond issue was to maintain affordable hous- ing in the community; further opining that she had no idea that the action would involve current tenants losing their homes, in addition to the developer receiving a substantial fee. Councilmember Ihlan opined that, since the City was the issuer of the tax exempt bonds, the least they could do was to enforce compliance. Councilmember Ihlan proposed action steps for the City Council consisting of a careful review of the regulatory agreement; additional application documents and information as previously referenced; and contact with the MHFA to determine the status of tax credits. Councilmember Pust, based upon her review and Councilmember Willmus obser- vations of language on pages 3 and 4 of the agreement, opined that the City had some obligation to monitor compliance, either by the City Council or through the MFHA. Councilmember Roe sought additional information on who was responsible for monitoring compliance, staff or consultants; and sought to better understand the process. Councilmember Roe suggested a review by the HRA Executive Director and staff, working with the City's legal counsel, rather than the City Council con- ducting the investigation. Councilmember Roe opined that staff should perform the investigation at the direction of the City Council, and report to the City Coun- cil with their findings. Councilmember Ihlan opined that the City Council was ultimately responsible for the compliance issue, as the bond issuing authority, and requested a clear picture of the City's authority and sufficient documentation provided to determine the next step.