Agenda - Council - 02/22/2005 - Laserfiche WebLink

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CASE # CONSIDER ADOPTION OF FIRST AMENDMENT TO MASTER DEVELOPMENT AGREEMENT FOR RAMSEY TOWN CENTER By: James E. NOrman, City Administrator and William lC Goodrich, City Attorney Background: The City of Ramsey entered into a Master Development Agreement with Ramsey Town Center LLC, (RTC) in September 2002. During the spring of 2004, it became evident that changes and amendments to the Master Development Agreement would be necessary in order for the development to proceed. The City :directed Jim Lasher of LSA to draft a General Business Terms and Conditions Letter that Was. ad6pted by the City Council on July 27, 2004, and staff was directed to begin negotiations for theI first'amendment. It was determined in October that negotiations were at an impasse and a neW General Business Terms and Conditions was drafted by LSA and adopted by the City CounCil on November 9, 2004. City staff has been working with.the City Attorney, Tom Bray of Bhggs & Morgan, along with Jim Lasher of LSA to Complete negotiations for' the first amendment to the Master Development Agreement. Staff has held many work sessions with the City Council to provide updates of negotiations and to discuss details of the agreement. Staff and consultants met with the City Council at a recent work session held On February 15. During the work session held on February 15, the City Council was told that negotiations had been completed and the document was ready for Council consideration. Staff Was asked to place the item on the Council agenda of February 22 for Council action. First Amendment Description. The first amendment to the Master Development Agreement with RTC include a range of negotiated items including, but not limited to, items such as special assessments in the amount of $10,241,235 for cOnstruction of parking structures, AUAR road improvements, and phaSe I and Phase II roadway improvements: A release of escrow money being held currently bythe City; a letter 0f credit of $2 million for performance of developing activities; a delineation of City, owned property for construction of a municipal center and parking facilities; agreement for RTC ~o PaY $2 million for development of parks within the core area; and the City's agreement to !¢ompletelcertain segments of phase II roadway improvements. (The first atttendtttettt is attached to the agenda :without exhibits.) Option Agreement. As part of the first amendment to the Master Development Agreement, the developer offers two parcels in the core area of the Town Center. The two parcels are identified as Outlot F and Outlot:M and can be used for specific, permitted uses. The permitted uses include public facilities, ihealth cl~ib/fitness Club, and a cinema. Options must be exercised by the City within two years, with two, One-Year eXtensions. Purchase price for the properties are $10. (Option Agreement attached to the case.)