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CASE # <br />CONSIDER CONTRACT FOR DEVELOPMENT MANAGEMENT SERVICES FOR <br />RAMSEY TOWN CENTER <br />By: Heidi A. Nelson, Deputy City Administrator/Director of Community Development <br />Background: <br />At the February 9~' meeting of the HRA, a contract framework for Development Management <br />Services was discussed. The HRA provided feedback regarding that structure during that <br />meeting; subsequent discussions regarding Development Management Services for the Ramsey <br />Town Center project at the March 2°d meeting of the HRA. Staff has continued to discuss <br />contract provisions with Mr. Lazan of Landform following the March 2°d meeting of the HRA <br />and has developed a contract for HRA consideration. Additionally, staff contacted local metro <br />area brokers, which indicates an average commission of 3-5% for a land only representation and <br />1-3% of total project costs for a broader project representation. <br />As a part of those recent discussions with Mr. Lazar, staff had recommended a monthly fixed fee <br />of $15,000, which would be consistent with the funding required to support the activity level of <br />the past few months. Additionally, staff recommended a commission advance level of $5,000 <br />per month until $100,000 in commissions were achieved. After Mr. Lazan's discussions with the <br />Greeby & Cronk partners of the team, the terms outlined below are being requested and are <br />reflected in the attached Development Management contract. <br />Development Management Services Contract Overview: <br />• Fixed Monthly Fee - $15,000 <br />• Incentive Comp - (net of incentives) <br />0 2% on first $30m <br />o +1% on next $70m <br />o +0.5% on anything above $100m <br />• 1 % on any City initiated, non tax gen, Municipal use <br />• Advance on Incentive fees of $10,000/monthly <br />• Advances stop when total comp under incentive section reaches $120,000 <br />• $15,000 retainer on execution <br />• Initial workshop -part of fixed monthly fee <br />• Incentive comp on any/all projects in the project closing after March 1, 2010 (VA, <br />Sands, F&C, Deal, etc.) <br />Mr. Lazan will review the contract provisions in detail with the HRA during the meeting. <br />Board Action: <br />Authorize contract for Development Management Services for Ramsey Town Center. <br />Reviewed by: <br />City Administrator <br />HRA: 03.16.2010 <br />Attachments: <br />A: Development Management Services Contract <br />