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2. <br />Approval for liquor license for #18 KTV, 8080A Olive Blvd. with Sunday sales <br /> <br />Mr. Glickert moved to approve, seconded by Mr. Sharpe and the motion carried unanimously. <br /> <br />3. <br />Approval for liquor license for Blue Ocean Sushi, 6335 Delmar to include Sunday sales. <br /> <br />Mr. Jennings moved to approve, seconded by Mr. Sharpe and the motion carried unanimously. <br /> <br />4. <br />Approval for City Manager to sign and enter into a maintenance agreement between the City and <br />the Transit Development Authority (TDD) or Loop Trolley Company and a Permanent Easement <br />agreement with the TDD. <br /> <br />Mr. Sharpe moved to approve, seconded by Mr. Kraft. <br /> <br />Mr. Kraft asked Mr. Walker if he could provide Council with an explanation of what is contained in the <br />agreement. Mr. Walker advised Mr. Kraft that the City Attorney or the attorney for the TDD would be <br />better suited to speak on this issue. <br /> Mr. Kraft stated that his recollection is that Council had expressed concerns about this matter four <br />weeks ago and as a result the issue was postponed. He stated that there are two things he has told <br />people when asked about the trolley - one is that University City would bear no legal responsibility, <br />and the indemnification appears to have satisfied that. Second University City would not pay <br />anything for this trolley, even if it failed. Mr. Kraft stated that what he wanted in this agreement was <br />a guarantee that said if the trolley goes out of business, the TDD or the Loop trolley Company would <br />restore Delmar back to its original state. Rather it was his understanding of the contract that the TDD <br />agreed to give the City a letter of credit from a bank if they go out of business. Mr. Kraft stated that <br />what is unclear is how the City could get a letter of credit from anybody if the trolley goes bankrupt? <br />This part of the agreement was totally unacceptable. Until the City has some real guarantee that <br />they will not be held responsible for any financial risks associated with the trolley he is unwilling to <br />support the motion or an extension of the Conditional Use Permit. <br /> Mr. Kraft stated that after consulting with various experts in the field he was advised that there are <br />products available that will guarantee completion and hold the City harmless. He suggested the <br />Trolley Company or TDD revise the agreement to state that they will put the money to restore <br />Delmar in an escrow account, where the City pays them the going interest rate per year or they <br />purchase a ten or fifteen year insurance bond to take care of the cost. <br /> <br />City Attorney Katie Forster asked Jim Fredericks of Polsinelli Elliott, as well as David Richardson <br />from Husch Blackwell to join her. <br /> <br />Dr. Carr asked if each attorney could identify who they worked for. Ms. Forster stated that she had <br />received an authorization from City Manager Walker to engage Mr. Fredericks to assist her with <br />drafting an agreement, along with the TDD for the Loop Trolley attorney, Mr. Richardson of Husch <br />Blackwell. <br /> <br />Ms. Forster stated that although the letter of credit has been written into the agreement she believes <br />that both parties are willing and able to pursue or investigate other alternatives with respect to the <br />restoration of Delmar that Council may find more satisfactory. <br /> <br />Mr. Richardson stated that the TDD is a political subdivision of the State of Missouri and as such <br />they elected to utilize the letter of credit because in his opinion, a ten or fifteen year bond would be <br />difficult to obtain. He stated that the TDD’s source of funding, which is a sales tax, will continue for <br />forty years, so in the unlikely event that the trolley ceased operations there would still be enough <br />revenue generated for and by the TDD to cover the cost of removing the tracks. <br /> <br />Mr. Fredericks stated that for the most part he would agree with Mr. Richardson’s statement that the <br />TDD is a forty year program that will continue to bring in revenue from the sales tax, and therefore <br />would not be a burden on the City or the shop owners. However there is a forty year sunset on this <br />tax and there are also issues relative to the lump sum funding up front, since the money from this tax <br /> <br />