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<br />City Council ?vfinutes <br />November 21, 2005 <br /> <br />Page 13 <br /> <br />IvIr. Beck stated he could do some research in the history and nature of the claim. <br /> <br />MOVED BY COUNCILMEMBER DIETZ AND SECONDED BY <br />COUNCILMEMBER GUMPHREY TO HAVE CITY ATTORNEY PETER BECK <br />REVIEW THIS ISSUE AND COME BACK TO COUNCIL WITH OPTIONS FOR <br />DEBT COLLECTION. MOTION CARRIED 5-0. <br /> <br />7.4. NeD_A Update <br /> <br />Counci1member Morin provided an update of the Northstar Corridor Development <br />_Authority meeting scheduled November 3, 2005. <br /> <br />7.5. Utilities Update <br /> <br />Councilmember Dietz provided an update of the Utilities Commission meeting held on <br />November 9, 2005. <br /> <br />8. Other Business <br /> <br />8.1. Pine\vood Golf Course Update <br /> <br />Mayor I<linzing stated property owner Paul I<.rause has been given the letter of intent from <br />the city for purchase of the Pinewood golf course and has responded back with requested <br />changes. Mayor I<linzing reviewed the changes. <br /> <br />Counci1member Dietz questioned if the deal would be off if the property appraisal as a golf <br />COllIse came back at less than $2.4 million. <br /> <br />IvIayor I<linzing stated yes. <br /> <br />Councilmember Morin stated he is not in favor of getting the second appraisal. He is <br />concerned of the covenant agreement benveen the homeo\vners and Pinewood as the <br />homeo\vners have a lawsuit against 1vIr. I<.rause. He stated the city \vould \vant to get a <br />release from the homeo\vners in case they would want to turn the land into residential in the <br />fu ture. <br /> <br />lvIr. Beck stated there are t\VO issues with the covenants: \vhen they expire and whether or <br />not the plat as approved \\t"ould comply. He stated he believes the letter in the language <br />dealing \Vith title would be sufficient to cover the city. He stated the city could raise the <br />covenants as a title objection. <br /> <br />Counci1member Gumphrey stated that if the city is looking at possibly reselling this <br />property, then the city should get the second appraisal to see what it is worth. <br /> <br />MOVED BY COUNCILMEMBER FARBER AND SECONDED BY <br />COUNCIL~IEMBER MOTIN TO AGREE TO THE FOLLOWING CHANGES <br />IN THE LETTER OF INTENT: <br /> <br />1. $2.4 I\1ILLION OVER 5 'YEARS ON A CONTRACT FOR DEED. <br /> <br />2. INTEREST RATE OF 60/0 \VITH A DOWN PAYMENT OF $400,000. <br />