8/13/1986 (2) - Laserfiche WebLink

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AUG 13 1986 RECOMMENDATION:�P BOOK 65 F,�GE406 Staff recommends that the Board of County Commissioners deny the request to accept a letter of guaranty in lieu of posted security in conjunction with the Hawk's Nest golf course Stormgrove Road developer's agreement. Staff Planner Stan Boling explained that there have been some changes since the above memo was written, and Assistant County Attorney Bruce Barkett advised that he is basically asking the Board to approve just the concept today of allowing a mortgage to be used as a security backup for the construction agreement rather than an irrevocable letter of credit. He believed that we will find that that it will be a second mortgage for $81,000, with the first mortgage of $800,000 on property appraised iti excess of $1.5 million. Chairman Scurlock noted that in this particular case we are not sure whether or not the improvement will be made, and he is looking for something unique because he did not want to get into accepting mortgages as security on projects. Attorney Barkett stressed that the developer does not want to tie up $81,000 for an indefinite length of time and this may exceed 10 years. That is why he is requesting to give a second mortgage for our security, which is enforceable, and then within 60 days of the date that the County tells them that they need to make the improvements on Storm Grove Road, they will substitute an irrevocable Fetter of credit for that amount and make the improvements. Chairman Scurlock felt we should allow staff to go ahead and negotiate these conditions and come back to the Board, or the Board could approve it today as long as the numbers come in .right and the value of the property exceeds $1.4 million, that there is only one mortgage to the tune of $800,000, and that our mortgage is indeed a second mortgage. If that is the case, staff would not have to bring it back to the Board. 44 ' M W