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HRA Regular Session <br />Meeting Date: 05/13/2014 <br />By: Ted LaFrance, Administrative Services <br />5. 3. <br />Information <br />Title: <br />Development Manager Compensation for Development at North Commons <br />Purpose/Background: <br />Per the Agreement dated 4/1/2011 between the City of Ramsey HRA and Landform Professional Services, LLC, <br />Landform is due an incentive -based compensation whereas the Incentive Compensation will be paid on all <br />transactions (within The COR) regardless of origin or referral source. The Incentive Compensation shall be, as <br />stated within the Agreement, two percent (2%) of the total capital cost of the end use of the parcel or property sold <br />or development. <br />The City of Ramsey HRA entered into a Purchase Agreement with Purmort Homes, Inc. for the development of <br />four (4) single family homes at North Commons. This development and sale of property (authorized for sale by <br />resolution 14-04-067) prompts an Incentive Compensation per the above referenced Agreement. Staff has calculated <br />an Incentive Compensation to Landform in the amount of $14,874.87. This calculation does not include the site <br />improvement costs, which is expected to increase the Incentive Compensation figure. This compensation is due to <br />Landform in various increments as follows; 20% at signing of the PA, 60% at closing and 20% at Certificate of <br />Occupancy. <br />Staff has provided the attached Incentive Compensation worksheet to Landform. Landform is interested in <br />negotiating a one-time lump sum payment, in lieu of the above incremental payments, of $14,000. <br />Observations/Alternatives: <br />Alternative #1: Approve the negotiated one-time payment of $14,000 to Landform Professional Services, LLC. <br />Alternative #2: Approve the calculated Incentive Compensation of $14,874.87 understanding this number will <br />increase with added "site improvement costs". <br />Recommendation: <br />Staff is recommending Alternative #1, recognizing savings of more than $800 (also realizing greater savings given <br />the alternative and needing to incorporate additional costs). <br />Action: <br />Motion to approve compensation to Landform per Landform's negotiated one-time payment of $14,000, thus <br />ending obligations of payment to Landform for this specific project. <br />Attachments <br />Incentive Compensation Worksheet <br />Form Review <br />Inbox Reviewed By Date <br />Kurt Ulrich Kurt Ulrich 05/08/2014 01:50 PM <br />Form Started By: Ted LaFrance Started On: 05/08/2014 01:26 PM <br />