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Mr. Roush believed the motion was to allow the construction of the building <br />without a tasting room; that there would be a set-aside letter or some other instrument <br />issued by the bank that would allow the developer to draw those funds down in <br />increments as portions of the building are completed. <br /> <br /> Mr. McKeehan said there are two components to the construction costs. One is <br />whatever equity is put in and the other is bank funds. IfWente decides to spend <br />$500,000 of its own funds and get $1.5 million from the bank, it does not want to get a $2 <br />million line of credit. He asked to be able to work with staff to determine how the project <br />will be funded. <br /> <br /> Mr. Wente asked Council to allow flexibility and understood Council's desire for <br />a guarantee. He said a $2 million letter of credit is much more difficult to obtain than a <br />bond and he did not believe he could obtain that. That would definitely get in the way of <br />the project. <br /> <br /> Mr. McKeehan believed in the word of Mr. Wente and indicated that Signature <br />would guarantee performance. <br /> <br /> Mr. Roush believed Council was seeking assurance that the money would be <br />available to complete construction of the building. There are a number of things that can <br />be worked out. That would only have to come back to Council ifa satisfactory method <br />was not found. If Council wants the shell building constructed with some kind of <br />guarantee, then that is enough direction for staff to proceed. <br /> <br /> Mayor Pieo restated his substitute motion to define the restoration of the <br />winery to be the rebuilding of the building and not requiring any wine making <br />production or tasting room at this time but requiring the posting of $2 million to <br />secure performance in a form to be negotiated by staff. <br /> <br />The roll call vote was as follows: <br />AYES: Councilmembers - Ayala, Dennis and Mayor Pico <br />NOES: Councilmembers Campbell and Michelotti <br />ABSENT: None <br />ABSTAIN: None <br /> <br />There was a break at 9:35 p.m. <br /> <br />The meeting reconvened at 9:40 p.m. <br /> <br />Item 6c <br />Status Report of Issues at the Hacienda Mobilehome Park <br /> <br />Michael Roush presented the staff report. <br /> <br />Pleasanton City Council 14 02/06/01 <br />Minutes <br /> <br /> <br />