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Mayor Huntoon said then these amounts that have been deposited in the Bank
<br />of America are going to be enough funds to totally pay for the Library, tha d 87
<br />is total principal and interest payments.
<br />Mr. Trevino stated that was correct, and the $295,562 amount will be placed
<br />in a reserve account, which the City will eventually get back, this would
<br />not be lost.
<br />Discussion then followed among Council Members and Staff with regard to the amounts
<br />deposited in the bank towards payment of the Library.
<br />Discussion was also held on the Letters of Opinion submitted by Best, Best & Krieger
<br />on various items concerning the Library project.
<br />22. Letter from Bank of America - Certificate of Officer of Trustee.
<br />Mr. Trevino said this is a letter from the Bank of America indicating who the
<br />Officers of Trustee are.
<br />Mayor Huntoon asked if these were Bank trustees, and during the life of this
<br />contract, or agreement, these same people will be theoretically the Trustees.
<br />Mr. Trevino stated to his understanding that was correct.
<br />31. Construction Contract - Contract between Rossetti Construction and City.
<br />Mayor Huntoon asked how much was the Contract with Rossetti Construction.
<br />Mr. Trevino answered he believed it was approximately $614,000.
<br />Q
<br />Q Mr. Trevino then advised that all documents, agreement, etc., relating to the Library
<br />project have been fully executed and all that remains is the construction of the
<br />building.
<br />Mr. Trevino said with regard to any options now available to the City, or any possible
<br />changes that could be made at this point, this is a legal matter that could best be
<br />answered by the City Attorney, or the legal consultants to the Library project, Best,
<br />Best & Krieger.
<br />Mayor Huntoon said, in other words, everything has been approved and signed, and
<br />the City is actually "tied -in", or bound, legally and there really is not much
<br />that can be done about it at this point.
<br />City Attorney Edwards then read in full a letter dated April 26, 1982, from Best,
<br />Best & Krieger, reiterating details and procedures relating to the Library project,
<br />the form of financing, lease purchase agreement, etc.
<br />Mayor Huntoon said he would like to know what is meant by the statement - at the
<br />end of the lease payments, we acquire the Library at a nominal sum?
<br />City Attorney Edwards answered probably $1.00.
<br />Mayor Huntoon stated if the Trustee, for one reason or another, takes over the Library
<br />for nonpayment or anything else, they can be in possession of that for the term of
<br />the Ground Lease, and the Ground Lease is for a period of 50 years. Mayor Huntoon
<br />asked does that mean that they can keep it for 50 years.
<br />City Attorney Edwards answered he would agree that the term of the Ground Lease is
<br />50 years.
<br />Mayor Huntoon said in other words, they can have possession of the Library for the
<br />term of the Ground Lease, is that what it says.
<br />City Attorney Edwards answered, yes, I believe you are right.
<br />Discussion was then held on the form of financing for the Library project, the issuance
<br />of bonds, or certificates.
<br />Mayor Huntoon said that it appears to him the City is almost totally obligated, at
<br />this point, to proceed, as everything has been signed, everyone concerned has a
<br />contract, and considering the letter received from Best, Best & Krieger on the legal
<br />aspects, this Council has no choice but to go forward with the project.
<br />Councilman Rios stated that he is also against this form of financing and certain
<br />procedures followed for the Library project, however, as stated, due to the legal
<br />ramifications involved, the City seems to have no choice but to proceed.
<br />APR 2 7 1982.
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