Minutes - Council - 02/13/2007 - Laserfiche WebLink

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assess, which cities don't assess, and there are some cities that assess less and some that assess more. There should be a review of this information without making blihd statements without factual data. Case #2: Authorize Execution of Exclusive Negotiation Agreement with Ryan Companies US Inc. for Ramsey Crossings Community Development Director Trudgeon reviewed that in 2006, the City solicited development proposals from various developers for the redevelopment of land west of Armstrong known as Ramsey Crossings. After reviewing those proposals, the City initially selected RCM - Minnesota Corporation ("Muir") as a potential developer for the Development Property. The City and Muir entered into an Exclusive Negotiation Agreement dated as of July 26, 2006. Muir terminated the Exclusive Negotiation Agreement by a letter to the City's consultant, James Lasher of LSA Design, Inc. delivered on January 26, 2007. Mr. Trudgeon stated Ryan Companies US, Inc. ("Ryan") was one of the developers that submitted a proposal in response to the City's original request for proposals, and the City would like to enter into negotiations with Ryan to determine if the City and Ryan can reach an agreement pursuant to which Ryan would develop Ramsey Crossings. Ryan has indicated that this agreement is necessary for them to proceed to have discussions with potential end users in the Ramsey Crossings project. Mr. Trudgeon stated the costs for drafting the Exclusive Negotiation Agreement and the negotiation with Ryan for the Ramsey Crossings project have been directed to the Ramsey Crossings escrow account. It is the intention of the City to recover these costs as part of the final agreement with Ryan Companies. Councilmember Dehen questioned why the City would need to work with just one developer with this exclusive agreement, rather than working with multiple developers to find out what will be in the best interest of the City, as opposed to putting their eggs in one basket for 60 days. He noted the City worked through this with Muir, and as he understands it, it seems a lot of that work has been forged forward and could be used as a good stepping stone. Mr. Trudgeon replied the long answer is that the City can do this anyway they would like; however, there are very few development companies that can do a project of this magnitude. When the City put out RFP's for this area, Ryan Companies was one of the groups that submitted. The short answer is that for Ryan or any developer to secure a contract with a company to come into a project like this, those companies will want to see that the developer is the real deal and can deliver the project. More specifically, Target has said they need to be sure Ryan is working with the City, and they cannot commit until they know Ryan is working in partnership with the City. The tenants need to have assurance that the project can happen and the developer is representing himself properly in that he can develop the project within the community. Ryan has requested that the City enter into this agreement, which helps their negotiations with various tenants. Councilmember Dehen questioned the reason for 60 days, as opposed to a shorter period of time. City Council / February 13, 2007 Page 10 of25