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HRA Regular Session Meeting Date: 06/26/2012 By: Kurt Ulrich, Administrative Services 5. 4. Information Title: Review COR History and Exit Strategy Background: The City purchased the Ramsey Town Center Development out of foreclosure in June of 2009. Shortly thereafter, the City/HRA hired Landform to head up the re -visioning of the project and to serve as development manager moving forward. Attached are copies of minutes from the summer and fall of 2009 outlining discussions regarding the exit strategy. Also attached is a flow chart depicting the anticipated steps involved with the development over a three year period. A number of actions have been taken that have put the development near Stage 2 of the exit strategy. The re -visioning, re -branding, marketing material, road reconfiguration, comprehensive plan amendments, revised development guidelines, fill/cut analysis of the site, creation of a Tax Increment District, master declaration agreement, and projects such as the rail station, VA Clinic, the Draw, Allina, and road improvements have all added value to the project. This case was originally introduced at the June 12 HRA meeting. Observations: At the June 12th HRA meeting staff was requested to find more information on two items: (A) How/Why the City chose to purchase the Ramsey Town Center? (B) What was the process utilized for recruiting/interviewing/hiring a development manager? Item A, How/Why the City chose to purchase the Ramsey Town Center? In summary, based on meeting minutes (HRA and City Council) and press releases, the City decided to purchase the Ramsey Town Center for three major reasons: (1) to protect City infrastructure investments made prior to the Ramsey Town Center's failure; (2) clean up a number of property title restrictions/issues that made this project unattractive to potential buyers/developers--including back taxes/interest/penalties; and (3) turn around a project that was a "risk" for the community as a whole into a project that fits the City's vision and goals. Attached to this case are a number of supporting documents pertaining to this request: 1. Press Release March 18, 2009 (Justification for Purchase of RTC) 2. 03-17-09 RTC Settlement Presentation-RamseyCityCouncil (Justification for purchase of the RTC) 3. City Council Special Session Minutes March 17, 2009 (Discussion of Ramsey Town Center Litigation) HRA Meeting Minutes 4. HRA Special Special Session Minutes March 17, 2009 (Approving Purchase Agreement) 5. HRA Resolution 09-03-003 (Purchase of Ramsey Town Center) 6. HRA Resolution 09-06-005 (Abatement of Special Assessments) 7. Full Purchase Agreement (Ramsey Town Center) Item B, What was the process utilized for recruiting/interviewing/hiring a development manager? In summary, the City went through a standard Request for Qualifications (RFQ) Process to hire a development services manager. This process began in October of 2009 when staff sent out an RFQ to a list of potential applicants. Staff received eight responses. After review, staff selected three applicants to bring forward to the HRA in November of 2009. Interviews of the final three applicants were conducted by the HRA in December of 2009 (Landform, Solomon Real Estate, Forest City). With discussion, the HRA selected Landform. At the February and