6/20/1984 - Laserfiche WebLink

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I JUN 2 01984 BOOK - 57 't� J 511 have to find a mechanism to enter into the contracts and commit the County to $2.4 million, and at the same time assure the County that the balance of the $871,000 will be available should the assessment bonds fail. He felt there were two ways to do this; 1) To go back to West County Utilities and ask them for a letter of credit for their entire obligation of $2 -million which would provide absolute assurance to the County. The letter of credit would be written so that in the event the assessment issue was not sold to Florida National Bank by September 1, 1984, the County then would have the ability to call down that letter of credit and use the $2 -million to build the project. That would involve certain costs to the utility and Attorney Brandenburg wasn't sure whether they would want to do that. 2) Enter into a contract with West County Utilities and their participating individuals that in the event the assessment revenue bond issue is not in place and bought by Florida National Bank, then each of them individually within a 10 -day period will come up with their $970.45 per equivalent residential unit that they have reserved. That would produce the $2 -million which the County would need to finish the contract. Under the contract, the County has an agreement with them to come up with those funds. All the developers want this project to go as their development plans are contingent upon the project being completed, and they originally agreed to come up with that money up front. In either event, the developers are getting what they bargained for, and the only thing they would be losing out on is the interest break that the County has been trying to benefit them with by virtue of assessment. The County Attorney recommended the irrevocable letter of credit. As an alternative, he reported that an agreement is being prepared which should accomplish the second 48