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June 28,2011 Page 4 of 6 <br /> Director Fernelius reported that the Redevelopment Services Agreement with Ryan <br /> Companies is slightly different than the Welsh agreement. In some ways it is similar to a <br /> preliminary development agreement, but is non-exclusive in nature. Ryan will perform a site <br /> evaluation(i.e. due diligence, information gathering) and ultimately prepare a concept plan <br /> showing the location of potential buildings on the site. Both Ryan and Welsh have <br /> emphasized the importance of using a site plan and building renderings as a marketing tool. <br /> Ryan expects to invest resources into the project with its own internal and outside <br /> consultants. However,because there is no guarantee that Ryan will be selected as the <br /> developer for all parcels, they are requesting compensation in the event a third party is <br /> selected. This concept has been referred to as a"break up fee"or third-party land transaction <br /> fee. The fee would be based on 14 cents per square foot and not to exceed $100,000. <br /> This provision would extend for a period of 6 months following termination of the agreement. <br /> The agreement contemplates one or more future redevelopment contracts will be needed as <br /> development projects start to materialize. The City will retain its discretion in deciding <br /> whether to approve a future project. In addition, the agreement stipulates that the parties <br /> will work cooperatively on sharing information. There are provisions which allow the City <br /> or the developer to cancel the agreement for cause; which includes things like a bankruptcy <br /> or fraud. The City also has the ability to cancel the agreement if there is a change in the team, <br /> which currently consists of Casey Hankinson and Rick Collins. The City would be obligated <br /> to pay Ryan if it canceled the agreement without cause pursuant to the break-up fee described <br /> above. <br /> Staff believes the agreements are reasonable and provide sufficient incentives for both Ryan <br /> and Welsh to market and hopefully develop on the site. At the same time, the agreements are <br /> structured to give the City some flexibility. <br /> Councilmember Bauman requested clarification on the term of the contract with Ryan Co. as <br /> four years. Director Fernelius confirmed. Councilmember Bauman and Phillips extended their <br /> appreciation to the EDC for their recommendation. <br /> Motion by Councihnember Bauman,seconded by Councilmember Burg approve the attached <br /> resolution authorizing the Mayor and City Manager to execute separate agreements with <br /> Welsh Companies,LLC and Ryan Companies US, Inc. for the marketing and <br /> development of commercial land in New Brighton Exchange. <br /> 5 Ayes,0 Nays-Motion Carried <br /> 2. Consider Amendment to Section 11-8 of City Code Regarding Placement of(Garbage 2. Consider <br /> and Recycling) Containers. Report No. 11-184. Ordinance No. 802. Amendment to Secti <br /> 11-8 of City Code <br /> Regarding Placemer <br /> (Garbage and <br /> Code Enforcement Officer Joe Hatch explained that the proposed changes include: Recycling)Contain( <br /> p p p g Report No. 11-184. <br /> Ordinance No.802. <br /> • Including Recycling/yard waste containers, and <br /> • All placed in the rear or on the side of the premise, or <br /> • Placed in such a manner as to be out of view from the street from in front of the premises, or <br /> • Placed in a garage located on the premises; and <br />