Development Team Meeting Notes (96-99)

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it works if you haven't gone out for bond sale yet. They would be coordinating information with St. Paul. It is a huge expense to bond it and need to work with County ~,; regarding risk. We don't need surprises. Ed responded that the County's risk is on the line, not Pence Kelly, but details are being worked out if the County would be on the hook for everything. The better option would be directly with the County. It is a more contractual relationship with fewer parties. Who is owner; who is driving? Ultimately the bond company will look to where funds are coming from and what are the obligations of the party paying. There will need to be work on a new development agreement. The private investor needs to be consulted in this agreement, due to his risk and exposure. This is a legitimate concern. What Dan has to pay for cost of funds will depend on his risk involved. The ideal situation would be to have bonds in hand before starting the project. If we look at an August 1 excavation date and a September 1 gmp date, what does that do. Dave said in order to meet an August 1 date, the bid packages must be sent out July 1, or sooner. There is the 4'~ of 7uly holiday to contend with. Plans need to be in place. We need to keep project on track. Again discussions turned toward the environmental issues related to the site. Excavation is quite a project, not just digging dirt. There is possibility of Chevron filing an injunction against the County, but legal counsel feels there is no basis for the injunction at this time. Demolition will be done by August 1, and after that we will be in a better position to do excavation by September 1. ~ When do we sell the bonds? Mark replied the best approach would be to run most of the bond issuance process parallel with the other schedules and once the gmp and the other pieces are in hand, we will be ready to proceed. Ed added that the e~ra month gives us time to put our bond package together starting in 7uly. We can have everything ready and then add the missing pieces. It won't push back the sale date. We can sell bonds mid-August and close a couple weeks later. By the time you get notice to proceed you will have dollazs in hand. A new gmp date was set for August 15'~ and September 1 for construction date. Discussions were directed at having a separate excavation contract date of August 1. Pence Kelly can limit their risk if they bid rebar pieces at this time. There was a question if FTA mandated competitive bids for this portion and Transit said yes. Environmental issues were discussed again. There are questions concerning this aspect that need to be discussed with Centurywest, the environmental consultant. As far as the rfp for the project manager, Randy reported that it would be ready to send out by Thursday of ne~ week. It was agreed that a11 parties need to talk about this issue before it is sent out. In dealing with the August 15 gmp deadline, we know we have a project or problems to work out. With good communications, we will all have a sense of where we are. RG ~ 6