CCP 05-24-2011 - Laserfiche WebLink

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Commissioner Smith commented NAI is the less expensive firm. Motion by Commissioner Benke, seconded by Commissioner Beach that the EDC recommend to the Council that they select NAI Welsh. 7 Ayes -0 Nays Motion carried. The developer interviews with Ryan Companies and the Opus Group were conducted on March 24th Five of the seven EDC commissioners attended. In general, the EDC's verbal comments afterward were very positive. The sentiment seemed to be that both firms were extremely capable of working with the City. The developer arrangement is non-exclusive in nature and therefore has some different issues that must be addressed in the event an end-user works with another party. Because of this reality, staff asked each developer to submit a written letter of intent. Both developers have expressed similar concerns about the meaning of "preferred" developer for the project. Staff has made it clear that the City will work in good faith to promote the preferred developer to prospective users. Both firms are proposing a multi-year term. Ryan is requesting 4 years, while Opus would like 3 years, with a 2-year extension in the event the company is successful during the initial term. The City has made it clear that it should have the right to cancel the agreement for cause and not have to pay any break-up/reimbursement fees. For example, a bankruptcy, fraud or change in key personnel would be a basis for terminating the agreement with cause. Both developers have expressed the need to craft language that carefully defines these conditions and have agreed that termination for cause would not trigger a break-up fee Both firms have experienced and capable staff and adequate resources. Each company seems to have very good reputations, although Opus is still dealing with the fallout from its re-organization. Ryan has a lengthy history in New Brighton, including the Northwest Quadrant. If there are perceptions that Ryan already has rights to the site, then selecting Opus might offer a change. It is clear that both companies will need to commit adequate time and resources to understand the site. Staff is comfortable working with both teams. Commissioner Flahave questioned what the past relationship has been like between the City and Ryan Companies. Director Fernelius stated it was very good. Mark Ruff commented both firms are very competent, and stated in his opinion Opus tends to get more large corporate campus projects along freeways; while Ryan seems to be more concerned with local relationships. Arne Cook commented that Mr. Ruff's assessments were very accurate. Councilmember Phillips commented that he agrees Opus tends to focus more on corporate headquarters type projects. Arne Cook suggested the City hold out for a multi-story or larger office building on the premier sites near the freeway. Director Fernelius reported there is a perception in the marketplace that this is Ryan's site; likely because Ryan built the DSI/Transoma building. Mr. Cook commented that Ryan could be perceived as being more knowledgeable. Councilmember Phillips suggested requiring a minimum floor area ratio on some of the sites. Commissioner Smith questioned if Ryan and Opus could work well together if the situation arises. Mr. Cook stated Ryan and Opus are strong competitors, and both could bid on the same site, and the developer with the greatest knowledge will have an advantage. Councilmember Phillips questioned if there should be two developers, because of the two freeway sites. Mr. Cook stated that would be very difficult, and the City will be better with the non-exclusive development agreement. Commissioner Snell questioned if it is possible to negotiate the break up fee with the developers. Mr. Cook stated it is in the City's best interest to select a developer based on the current presented information. Chairperson Benke questioned the process, assuming the EDC would make a recommendation to the City Council; followed by Council's direction to direct staff to negotiate a contract. Director Fernelius agreed. Councilmember Phillips commented the break up fee should be resolved prior to council