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7. FLOORIDISCUSSION (CONT'D Mr. K ine asked a question about money that was put down by Associates in the previous Superblock proposal... "and then you don't hear of whether it was ever returned ... this leaves me with the impression that something is covered up. Is th -s going to be the same situation here, are they going to be bound to put d llars in and be legally bound, if they do not go through with this project, because the economy changes, what happens then, do these people lose their money or wi 1 it be given back? Is there a guarantee involved ?" Mr. Nimtz said this las been explained several times before and here again, with definite regulations from HUD as to what we can do and what we con't do, when federal money is taken you take the federal regulations along with it. They tell you what 3ou can do and what you cannot do. Mr. Butler explained further the proce ure on bidding for disposition property is the Commission at a planned time vhen the property in question is acquired, if the Commission decides that it wi 1 proceed, then following that determination, the Commission can offer the p operty for sale. With that offer then a notice will be made in the paper, bids will be received on a specified date, and with the bids, a 10% bid bond is re uired. Assuming that the various bids or bid received are in order they will be reviewed, and a determination made by the Commission to accept one of the bids, or bid or reject the bid or bids, then a schedule will be established at that point where the execution of a redevelopment contract and a ain, a performance bond is required, once the contract itself is execu ed. Prior to the execution of the contract if the party to whom the bid has been awarded, fails to enter into the contract or in some other way defaults, then the 10% bid bond would be retained by the Commission. The same is true after the contract has been entered into .... both the bid bond and the perfo Zumum nce bond will be retained. There is a minimum bid required, and that usually is set by the appraisal value of the property. Mr. A he ha propo after made of th said Counc commi Mr. B I hea "now Nimtz conti "a de part meeti clear Mr. A Mr. A Mr. N has t have canno at th derson questioned Mr. Brownell about his telling the Common Council that a commitment for the development—Mr. Brownell indicated that he said al ... Mr. Anderson asked if he had a commitment to bid on the property it has been acquired... Mr. Butler answered "No, we do not, we have his clear, we cannot legally take a commitment until we have possession property. Are you saying a legally binding commitment ?" Mr. Anderson "Yes, if I recall the remarks at the Common Council meeting the Common 1 was told at the time of the approval of the R -66 proposal that definite ments had been obtained by the proposed developers to bid on the property." tler added that" I was at the meeting and Mr. Brownell did not say nor did that and if he had I would have immediately..." Mr. Anderson interrupted it may have been ducked like some of the questions have been today..." Mr. commented "Now Dick do not say that..." "But there was ... Mr. Anderson rued..." a statement that the proposed developers..." Mr. Butler interrupted, finite statement was made today to you that no binding commitment on the of the developers has been made, and that same statement was made at the g in August when the Commission received the proposal. We stated very y that it was just a proposal...a letter of interest...a letter of intent." derson asked "that is not binding..." Mr. Nimtz added "it cannot be..." derson added that "I hope you make that clear to the Common Council..." imtz added, "Dick, I think where you are confused is that the developer e commitment from his proposed tenants... but Mr. Brownell and Mr. Butler teen with this Commission a long time and they both know that legally we take any money down, or enter into any agreement with these people... Is time." Mr. Anderson asked if their proposal to bid, does it include (12)