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CASE # I MASTER DECLARATION / SPECIAL SERVICES DISTRICT By: Darren Lazan, Development Manager BACKGROUND: Over the past several months, the development team has worked with the city's counsel and other property owners in The COR to understand the current disposition of the existing Master Declaration covering much of The COR property. A Master Declaration is essentially an association for the subject properties that lays out certain controls and functions to be performed by the association towards the benefit of the members. The existing Master Declaration was established by Ramsey Town Center LLC, and has essentially been relatively dormant for the last several years. To assure clear title for not only the HRA properties, but also for the other property owners in the development, it is essential that this matter be addressed by the effected property owners and some resolution be reached that allows the project to develop without this encumbrance. As The COR has been envisioned, there is the potential need for a layer of control, provision of services, and assessment of certain costs not normally attributed to the role of the City, or the HRA. Two potential options to fill this function could be either an amended Master Declaration, or a Special Services District. Our counsel familiar with the issue will present the detailed advantages and challenges of both for your consideration. Regardless of the method selected, there is a scope of services that can be characterized as above and beyond that which is normally provided by a city, but not necessarily able to be performed by private property owners within The COR. For the purposes of discussion, the development team has reviewed several example REA/OEA/CCR documents and prepared a summary of the services typically provided in a project similar to The COR, that should be considered as we develop a potential scope for the new entity to perform. This scope will be further refined and discussed with the other effected property owners prior to being presented back to you in final form. DEVELOPMENT TEAM RECOMMENDATION: The Development Team recommends the HRA consider the following: 1. As the current developers, which vehicle provides the best solution to providing the services we would like to provide as the project develops? 2. What would be an appropriate boundary for the members of this entity? 3. What would be an appropriate cost allocation method for the member Properties? 4. What would be an appropriate scope of services and controls for this entity? If this discussion produces clear answers, direct the development team to continue their efforts in resolving the current organizational issues and work with the effected property owners to structure the desired entity to assume those roles.