05-10-1984 Memo, Sewer Connection Issues

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TO: Walter R. Benson, City Administrator John R. Gerhardson, Public Works Coordinator Jeanne A. Mabusth, Zoning Administrator Glenn Cook, City Engineer Bruce Malkerson, City Attorney FROM: Michael P. Gaffron, Assistant Zoning Administrator DATE: May 10, 1984 SUBJECT: Status Update - Gladys Olson Sewer Hookup - 1340 Baldur Park Road This is another can of. worms. I had been .in contact with Gladys• attorney, Benjamin Hogue, (533-7272) two weeks ago, and he indicated there was a court settlement imminent, which today he informs me has fallen through. In light of this, the ownership today to the best of our knowledge, is as follows: Lots 21 - 29 and Lot 33 - William Franklin (529-9577) (North Minneapolis entrepreneur) Lots 31 S 32 - Tonka Lake Properties (Gary Petersen & Dennis Killian) (473-3000) Lot 30 - Midwest Federal c/o Real Estate Owned, Property manager Jack Collins (372-6391) As of today, we believe Gladys still is living in the house. Midwest Federal has not decided what to do yet but expects they will sell the property, if and when, they get clear title (some problems with it) and may evict Gladys at some unknown date. We have no current subdivision application and have no assurance that one is forthcoming. We have a letter of credit in the amount of $5,000 in the name of Dennis Killian, payable to the City of Orono, which is payable upon our demand accompanied by our signed statement certifying that "the amount drawn represents past due debt to the City of Orono for sewer construction". This letter of credit has been extended twice in the past and currently expires -on June 1, 1984. This letter of credit was to ensure that if a subdivision was not completed, the sewer connection to 1340 Baldur Park Road would be completed. It is our intent now to proceed with the connection and to draw on the letter of credit before it expires. Questions and problems that immediately come to mind include: