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CC Work Session 2. 2. <br />Meeting Date: 06/13/2017 <br />Information <br />Title: <br />Update on McDonald's Project <br />Purpose/Background: <br />Purpose: The purpose of this report is to bring the City Council up to date with regard to the McDonald's project. <br />Background: The last update/discussion regarding McDonald's occurred at work session on Tuesday, March 28, <br />2017. At that time, Council was informed that McDonald's had not met their construction obligations under the <br />development contract. McDonald's had indicated a desire to continue to hold the property and develop the site <br />when there is an appropriate level of demand to support the restaurant. Council was presented with some options - <br />including, court action to seek an order re -vesting title to the property, do nothing and wait for McDonald;s to <br />develop, or negotiate a new settlement with McDonald's. It was pointed out that the restrictive covenant on the <br />adjacent properties has been removed since McDonald's failed to meet development deadlines. <br />Consensus of the Council, following discussion, was to direct City staff to reach out to McDonald's to clarify their <br />intent, noting that McDonald's would need to demonstrate significant interest, or the City would consider exercising <br />their rights to reacquire title to the property. <br />Staff met with McDonald's real estate representative Melissa Schmidt. She proposed that McDonald's would likely <br />not build in 2017 or 2018, but may be interested in proposing a five-year term, with an agreed upon amount of <br />non-refundable money paid annually to keep the land secured. She will have a plan more defined following a <br />McDonald's regional leadership meeting scheduled for June 29. Staff would intend to meet with McDonald's <br />following this meeting to review the details of their proposal. <br />Timeframe: <br />Funding Source: <br />Responsible Party(ies): <br />Outcome: <br />Staff recommends that the Council defer action on this item until McDonald's reports back to the City in July and <br />consider the appropriate action at that time. <br />Attachments <br />No file(s) attached. <br />Form Review <br />Inbox Reviewed By Date <br />Kurt Ulrich Kurt Ulrich 06/08/2017 04:23 PM <br />Form Started By: Jo Thieling Started On: 06/07/2017 12:01 PM <br />Final Approval Date: 06/08/2017 <br />