Minutes - Council - 09/16/2003 - Special

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assessment, but the developer was not waiving their right to appeal with respect to an assessment in an amount greater then $5.5 million or to supplemental assessments. Councihnember Strommen inquired if staff was comfortable with $5.5 million if it can technically go out 12 years, especially since the City is legally obligated to assess 50 percent of the project cost. City Attorney Goodrich replied that the City always has the right to assess for benefit, but the City would have to prove benefit. City Administrator Norman explained that the developer, at one point, did propose that they take the responsibility of all ramps and there was a lot of discussion amongst the Council that they were receptive to that idea. The concern was what would be the City's guarantee that a ramp would be built since the development of Ramsey Town Center is based on structure parking. The language included in the development agreement does not preclude the developer from financing the parking structure if they can put together a creative package to do so, but the language provides a guarantee that if the developer is unable to construct the structures on their own, at least one ramp will be built. Councilmember Cook noted that the developer has a lot more financial options than the City does to make the ramps happen. Councilmember Strommen stated that she has heard the same commitment from the developer and she believed that to be the case, but she was concerned that if the City has to construct the ramp and the costs increase to the point that the 50 percent assessed to the developer is over $5.5 ~nillion, how do they resolve that issue. City Attorney Goodrich replied that the City would need to prove benefit in order to assess the additional amount. He noted that the development agreement does obligate the City to construct one ramp once sufficient development has occurred on the site. The other option the Council could consider would be to delete the provision in the development agreement that would allow the developer to appeal any assessment greater than $5.5 million. Councilmember Zimmennan stated that it was quite evident that the developer could assume the responsibility and free the City up for making improvements on the County Roads or Highway #10, which is an approach he would be more agreeable to. Mark Hamel, Attorney representing Ramsey Town Center, LLC, noted that the developer would not be limited to his property being assessed the $5.5 million, but that is the amount the developer will not contest. If benefit could be shown, the developer would not contest the increased cost. Councilmember Elvig stated that the other aspect they were overlooking is that assessing 50 percent of the cost provides protection to the City to help for other improvements if things go wrong. They always have the option of turning over the construction of the ramp to the City Council Special Meeting/September 16, 2003 Page 4 of 11