Laserfiche WebLink
Page 1 of I <br />Grant Formative <br />• From: LeFevere. Cherie L [clefeverealtiKennedyGraven.wml <br />Sent: Thursday, July 15, 20109'.23 PM <br />To: Grant Fernelius <br />Subject Ryan daim <br />Grant <br />Ryan Companies has requeskd reimbursement of $20,000 in expenses under the CONTRACT FOR <br />EXCLUSIVE NEGOTIATIONS AND CONSULTING AGREEMENT between Ne City and Ryan <br />Companies dial January 1, 2M (the "ConsolPog Agreement') <br />Section 3.2 of the Consulting Agreement provided for Ryan to consult wtN the City about expenses <br />incurred in connection with preparation of engineering kesibllity and AUAR repels. I understand Nal Ne <br />claim by Ryancompanied by Inevidence showing voices or other owing Nal Ryan incurred $200,000 of <br />expenses Nat were approved by the Ciry. <br />From what you have told us, the claim for $20,000 reimbursement appears to be reasonable and in <br />aaoMance with Me requirements of the Consulting Agreement and there would not have beon a serious <br />question about the Dity's obligation M pay Ifthe ine" had been submitted t0 the City promptly after the <br />work was completed some time in Me spring of 2003. <br />Under Me Consulting Agreement the City was required to pay Me Developer within 30 days after receipt <br />of an invoice. <br />Apparently, Ryan requested payment in October of 2006. Ryan did not adivelr pursue reimbursement <br />•because iters in negotiati0ns with Me City. Thcsen"gM tionskterresult inthe TmnsomamnbaO <br />entitled CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN THE CITY OF NEW BRIGHTON AND <br />NEW BRIGHTON 14TH STREET LLC" dated October 4, 2007 (me 'Redevelopment Agreement). <br />Under the Redevelopment Agreement, Ryan was given an option M purMase certain additional property <br />(Me"Graph Property") and I Ryan eardsel its other to acquire the Option Property. the $200,000 due <br />from Me City for the AUAR would be taken by Ryan as a credit in that purchase. <br />Of course. Ryan has since released in rights under Me Redevelopment Agreement to acquire the Option <br />Property. <br />Because Me original work was done so long no and because the obligation to repay was made apart of <br />Ma Redevelopment Agreement we thought it appropriate to review Ne law M sea ar ether the City hada <br />credible argument that the claim against the Ciry was sinter bared by the stands of limitation or was lost <br />as a result of the release 0f the option rights under Me Redevelopment Agreement Wehaveconcluded <br />that neither argument is a credible or g0od kith basis for denying Me daim, and we would recommend <br />that the chain be paid by the City. <br />• <br />Please let me know if you have any follow-up questions. <br />Churls <br />7/16/2010 <br />