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HRA Regular Session Meeting Date: 09/09/2014 By: Ted LaFrance, Administrative Services Information Title: Development Manager Compensation Agreement (Landform) 5. 2. Purpose/Background: Per the Agreement dated 3/31/2011 between the City of Ramsey HRA and Landform Professional Services, LLC, Landform is due an incentive -based compensation whereas the Incentive Compensation will be paid on all transactions (within The COR) regardless of origin or referral source, within 15 months of the termination of the Agreement. The Incentive Compensation shall be, as stated within the Agreement, two percent (2%) of the total capital cost of the end use of the parcel or property sold for development. This Agreement has expired; however, the following projects were secured and signed (under purchase agreement) prior to the expiration of said Agreement. The attached compensation worksheets have been negotiated, per the Agreement, and are ready for discussion/approval. The two projects highlighted in the attached worksheets are CommonBond and Casey's General Store. The payments, and timing of those payments, are also highlighted. These schedules were drafted by Staff. Staff communicated with Landform, per the Agreement, and are presenting the attached payment figures and schedules to be approved/discussed. Casey's General Store specific comments: The attached numbers are presented as final, Landform agrees to the worksheet as presented. These numbers were prepared by Staff and Casey's. CommonBond specific comments: Please note that there are two routes for the HRA to discuss in regards to Landform compensation for the CommonBond project. Route 1 is provided based on Staff negotiation with Landform to finalize building value figures. Without truly knowing the construction costs of the building, it is presented that it potentially be approved as a range. The final building value, and subsequently the "Total Payment" to Landform, would be calculated at the time final site plans are submitted for approval-- we'll know the actual construction costs at that point. This range of building value is based on Article 4B2b of the Agreement. Please note route 1 does not warrant payment now, but rather at closing per the Agreement being that the earnest money provided by CommonBond is not hard until closing (when contingencies are all met). This option does not finalize negotiation with Landform at this time but does finalize a range (a minimum and maximum payment) for security to both parties. CommonBond Route 2: Route 2 provides a negotiated option affording finalization of number negotiation with Landform. The negotiated building value number is the average of the range provided in Route 1. This route affords the HRA with finalized numbers (no more negotiation or checking back in to finalize payment); however, this route is offset by the need to provide Landform with the 20% (typically due at PA execution) now. This could be a loss for the City if the CommonBond project did not move forward (tax credits not awarded thus meaning the project fails; determination on the project moving forward comes late fall/early winter). Note: Staff has been asked at past meetings why public subsidies (CommonBond project may be provided $250,000 from the Anoka County HRA Fund should the project move forward) aren't removed from these compensation schedules-- the current Agreement does not allow for removal of public subsidies from the schedule. The current