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South Be *d Redevelopment Commission <br />Regular eting - April 25, 1980 <br />4. COMMUNICATIONS <br />a. continued.... <br />Auburn: Mr. Kalman has indicated <br />.t he is going to finance the <br />ovation of that building solely out <br />his own finds. Do we stand a risk <br />his coming back and asking for <br />nomic development finds or any kind <br />local bonding? <br />r. Ellison: I talked to Mr. Kalman <br />ersonally and he has indicated to <br />e that he does not care to pay prevailing <br />nterest rates on either an interim or <br />ermanent basis, and he has indicated <br />heir intent to finance out of pocket <br />nitially. That is, in effect, to do his <br />onstruction loan out of his own cash. <br />f at a later time he did want to use <br />onds or some other method to achieve <br />ermanent financing, I would not think <br />hat it would in any way effect the deal. <br />. Auburn: I guess my concern is that if <br />e gets halfway into the project and then <br />,cLll of a sudden he decides he doesn't want <br />to continue on his own financing but can't <br />find other financing either. If that <br />were to happen, then realistically you are <br />t lking about tearing down a building, but <br />it is difficult to move in and tear down <br />building when someone has put some <br />mprovement into it. It is going to be <br />even more of a difficult decision at that <br />point in time than it would be now, with no <br />rovements in the building. <br />. Ellison: That is true. Of course the <br />roblem with the economic development <br />usiness is that we will never have all <br />he information we need before we have to <br />ke a judgement. So what we will have to <br />o is go with our best determination of proba- <br />ility and in this instance we do have a <br />eveloper who appears to be of substantial substance. <br />-10- <br />