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Case #6: Consider Authorization of Contract for Town Center Project Management Services City Administrator Norman reviewed that the City Council discussed the need for private management services during a work session held on November 28, 2005. Staff explained to the City Council that the City is undertaking a number of projects within the core area of the Ramsey Town Center based on the terms of the first amendment to the Master Development Agreement. Two of the projects include a proposed cinema project and a proposed community/fitness center project. The City has been involved in a series of informal conversations that may also include the City participation in such projects as the "liner buildings" project between the Municipal Parking Ramp and the "liner buildings" that encompass the second ramp, sometimes referred to as the Sunwood/Grand Project. Mr. Norman reviewed that staff proposed a project management role to the core area of the Town Center. The project management role is critical because the City has made financial commitments to the success of the project. The project management role would be to coordinate all the different stake holders involved in the core area, create a clear process to address each individual project, and bring about a productive schedule for the accomplishment of the vision the City and the Master Developer have for the Town Center. He noted staff proposed that the City enter into a Project Management Agreement with Jim Lasher of LSA Designs, Inc., because LSA Designs Inc. has such a critical role with the parking district of the core development area of the Town Center. City Administrator Norman indicated the proposed fees for the project management services will be based according to a normal hourly rate that the City is already paying LSA Designs for their parking district services. An estimated cost for the first phase of the property management services is a range between $75,000 to $120,000, plus expenses. The City Council had a brief discussion during the work session and directed staff to work with LSA Designs to develop a proposed payment. He advised staff would propose that the payment would come from the Town Center Core Development District. Each project in the Core Development District would be assigned a proportionate value that would be responsible for the future costs of the project management, and future design services. It would be necessary to provide an internal loan for the initial stages of the financing for the project management services, similar to the architectural services in the design of the Municipal Center currently under construction. One of the first assignments of the new project manager would be to complete the detail work on the establishment of the Core Development financing plan. Councilmember Elvig indicated he is in agreement with the proposal. He commented on the possible need to provide incentives for LSA to be aggressive as a leasing agent. City Administrator Norman indicated Mr. Lasher or his agent will be present at all of the Town Center work sessions. Councilmember Elvig directed staff to provide the Council with quarterly cost updates from LSA. City Administrator Norman indicated Mr. Lasher will be asked to present a report to the Council in January. Finance Committee / December 13, 2005 Page 5 of 6