06-01-1981 CCMMINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
MONDAY, JUNE 1, 1981
The special meeting of the City Council was called to order at 5:00 P.M. by Mayor
Westlund, with the following present: Mayor Westlund, Aldermen Beatty and Peterson.
Absent: Aldermen Gruenhagen and Lueneburg. Also present: City Administrator Plotz.
Mayor Westlund summarized the position of the Prairie House request for industrial
revenue bonds. As an alternative to the Council's previous request of a 15% down
payment and 15% personal guarantee of the proposed note, the concept of a 100% per-
sonal guarantee by Edward and Emmet McCormick was discussed.
It was pointed out that in the City's prior transactions with industrial revenue
bonds, specifically with Developers Diversified, the City auditors did not make
recommendations regarding down payment requirements for the proposed issue. It was
felt that it was the lenders (bank, insurance company, etc.) that would dictate
these terms.
The motion was made by Alderman Peterson and seconded by Alderman Beatty to rescind
any prior action of the Council regarding a 15% down payment and a 15% personal guar-
antee and to instead request a 100% personal guarantee from the owners of the build-
ing (Emmet and Edward McCormick). The motion carried unanimously.
There being no further business, the meeting adjourned at 5:15 P.M.
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