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CASE # <br /> <br />CONSIDER REQUEST FROM RAMSEY TOWN CENTER LLC <br />FOR ALTERNATE SECURITY ARRANGEMENTS <br /> By: James E. Norman, City Administrator <br /> <br />Background: <br /> <br />The Development Agreement between the City and Ramsey Town Center LLC (RTC) <br />authorized on September 16, 2003, spelled out security arrangements for the Developer. Various <br />divisions of the Development Agreement required the Developer to deliver Letters of Credit to <br />the City to secure the Developer's performance of various obligations. Article 12.4 of the <br />Agreement provides that "The City Council may, in its sole and absolute discretion, consider <br />accepting" alternative security arrangements in lieu of requiring a Letter of Credit. The <br />Development Agi'eement laid out seven different alternative security arrangements open for <br />consideration listed as follows: <br /> (a) Cash escrow accounts with bona fide title insurance companies as to which the City is <br /> a thirdparty beneficiary. <br /> (b) Letters of credit. <br /> (c) Performance bonds. <br /> (d) Insurance policies insuring performance. <br /> (e) Evidence of construction financing sufficient to fund the improvements in question, <br /> with delivery to the City of copies of construction draws, lien waivers or other <br /> satisfactory evidence of payment of invoices as construction proceeds. <br /> (f) Evidence of liens of credit sufficient to fund the improvements in question, updated <br /> regularly. <br /> (g) Other arrangements satisfactory to the City. <br /> <br />In a memo dated September 29, 2003, the RTC made a formal request for alternate security <br />arrangements as provided for under Article 12.4. The formal request is attached to the case. The <br />document is being reviewed by the attorneys and the Development Consultant Mike Mulrooney, <br />and a meting will be scheduled with the development group prior to the Council meeting of <br />October 7. <br /> / <br /> <br />Recommendation: <br /> <br />Tom Bray of Briggs and Morgan will provide a formal recommendation and the City's <br />consulting team will provide a second recommendation following the meeting with the <br />development group. A recommendation will be made available for the Council. <br /> <br />Council Action: <br /> <br />Based upon discussion. <br /> <br />Reviewed by: <br /> <br />City Administrator <br />City Attorney <br />Economic Development Consultant <br /> <br />CC: 10/07/03 <br /> <br /> <br />