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<br />I~ <br /> <br />the city that works tor you <br /> <br />Re ort Number: <br />A end a Section: <br />Re ort Date <br />Council Meetin <br /> <br /> <br /> <br />. REQUEST FOR COUNCIL CONSIDERATION <br /> <br />ITEM DESCRIPTION: Consideration of First Amendment to Contract for Private <br />Redevelo ment with R an Builders, Inc. R an Com anies for Develo ment at 200 sth Ave. NW. <br />HEP ARTMENT HEAD'S APPROVAL: G~m?s, Director of Community Development <br /> <br />CITY MANAGER'S APPROVAL: <br />No comments to su lement this re <br /> <br /> <br />Comments attached <br /> <br />Recommendation: <br />Approve the attached First Amendment to Contract for Private Redevelopment with Ryan <br />Builders, Inc, for development at 200 5th Ave. NW. <br /> <br />Legislative History: <br />Term sheet approved by Council September 13, 2005. <br />Contract approved by Council February 28, 2006. <br /> <br />Financial Impact: <br />None; financial terms are unchanged. <br /> <br />. <br /> <br />Explanation: <br />The City and Ryan Builders, Inc. have been working together to develop the area south of DaIco <br />Industries along 5th Ave. NW. Ryan proposes to develop a multi-tenant warehouse building of <br />approximately 55,000 square feet; the U. S. Postal Service (USPS) intends to lease a substantial <br />portion of this building for a new "carrier annex." The parties anticipated commencement of <br />development in 2006, but have encountered several unavoidable delays, as follows: <br /> <br />. USPS increased the amount requested for the City to pay for its relocation; City staff is <br />considering a response to this proposal. USPS cannot sign a lease agreement with Ryan, <br />nor start development, until the City reaches agreement with USPS. <br />. The area is part of the former MacGillis & Gibbs wood treatment operation, and <br />therefore subject to regulation by MPCA and EP A as a Superfund site. The City is <br />working with Barr Engineering on additional testing and with both agencies to amend <br />the 1997 agreement; terms have not yet been finalized, <br />. The development parcel will be created in a swap with Bell Pole; Bell has agreed to a <br />term sheet but has not yet executed a contract with the City. <br /> <br />The City intended to acquire the parcel and complete its work by June 15, 2006, The <br />relationship with Ryan remains good, but the parties recognize that these efforts will take longer <br />to complete. The contract anlendment is proposed in order to extend the term to April 1, 2007 <br /> <br />~~~ <br /> <br />David W, Black <br />Assistant Community Development Director <br /> <br />. <br /> <br />[:ICOUNCl LIREPOR TS120061Communi ty DevelopmentlR yan Amendment. doc <br />