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<br />Councilmember Elvig suggested a commitment be obtained from Ryan Companies prior to <br />proceeding, rather than waiting for a final commitment at the end of the project. Regarding the <br />benefits Mr. Goodrich outlined to the property owners in extending the closing date, there are <br />also the benefits of 1031 land exchanges and relocation possibilities. The biggest thing for the <br />owners to consider is that the deal will be dead if the closings are not extended and the ground is <br />not massed. He asked whether the eminent domain powers can be used on the properties that do <br />not agree to an extension, if they are able to get an agreement from the majority of the <br />landowners. <br /> <br />City Attorney Goodrich replied this can be done; each parcel can be treated differently. <br />However, if the City proceeds with eminent domain and hearings are held they will be required <br />to purchase the subject parcels. . <br /> <br />Councilmember Dehen expressed doubt that a stipulation would be agreed to by all of the <br />property owners. <br /> <br />Councilmember Elvig inquired about the funding source to proceed with eminent domain <br />proceedings on the properties that will not agree to an extension. <br /> <br />Mr. Lasher indicated the funding source to cover property acquisitions has not been identified at <br />this point. The Uses and Sources Statement allocates monies to purchase all of these properties, <br />but nothing is guaranteed on any of these transactions, so there is still a risk. <br /> <br />Council discussed the following issues in relation to the negotiation of purchase agreements: <br />· Timing in relation to the eminent domain proceedings <br />· Requirement for contingencies to be included in the purchase agreements <br />· Ryan Properties participating with nonrefundable earnest money that would be included <br />in the purchase agreements <br /> <br />Councilmember Elvig qu~stioned at what point the City should determine to go through another <br />RFP process if the landowners agree to a stipulation. <br /> <br />Mr. Lasher advised he would caution if Ryan Companies does not receive an exclusive <br />negotiations agreement he is not sure they would move forward, and they would be responsible <br />to respond to an RFP as well. At some point Target will question the situation and it may put a <br />shadow over the project. <br /> <br />Councilmember Elvig stated he agrees the fallout needs to be considered, but his understanding <br />of Target is that they do not care who the developer is, they have an interest in Ramsey. Target <br />has been through this before in other cities. <br /> <br />City Attorney Goodrich requested direction from the Council in regards to requesting a six <br />month extension on the eminent domain proceedings from the property owners. <br /> <br />Mr. Lasher indicated staff will be able to present information to Council within a couple of <br />weeks regarding which properties have agreed to the extension, and the cost to proceed with <br />eminent domain proceedings on the properties that do not agree to the extension. He advised this <br />will be a two step process. If the Court grants the 180 day extension, Council can then decide <br />what to do with that additional time. Options would be to grant that additional time to Ryan <br />City Council Work Session I March 6,2007 <br />Page 5 of8 <br />