7E, Resolution 2008-037 - Laserfiche WebLink

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� ��.,�..5 CITY OF ARDEN HILLS COUNTY OF RAMSEY STATE OF MINNESOTA RESOLUTION NO. 2008-037 A RESOLUTION DES�GNATING THE RATE OF RETURN FOR PURPOSES OF NEGOTIATION BETWEEN THE CITY AND RRLD WHEREAS, the City of Arden Hills (the "City") and RRLD, LLC ("Developer") have entered znto a Preliminary Development Agreement dated March 30, 2007, as amezzded (the "PDA"), during the �erm af which t�e parties de�ermined to negotiate a Master Development Ag-eement ("MDA") re�arding the redevelopment of the Twin Cities Army Ammun�tion Plant site (defined as the Deve3opment Property in t�e PDA); and WHEREAS, pursuant to the PDA, the City agreed to evaluate the fnancial and market feasibility of the redeveIopment of the Deve�op�nent Property proposec� by Developer, and to analyze whetl�er Developer can demonstrate a need for public financial assistance in ti�at effort; and WHEREAS, to provide a�ide for conducting those evaluations, the City has cietermined to specify a rnaximum internaI rate of retum ("IRR") that is com�nercial�y reasonable for De�eIoper to seek in its role as developer of the Development Property, taking into cansideration the timing, nature anc� scape af the redevelopment effort. NOW, THEREFORE, BE IT RESOLVED by the C�ty Council of the City of Arden Hil�s, Mir�nesota as follows: l. The Ci#y directs staff �d consultants ta e�aluate Developer's pro formas for development of the Developrr�ent Property using a 15% IRR as the maximurn benchrrsar� for (a) detennining whether the Developer is projected to receive a commercially reasonabie rate of return, and accordingly whethez- the redevelopment is financially feasible; (b) determining the arnount of tax inczeznent or other public financial assistance (if any) that is reasanably rey�ired in order to reach market feasibility; and (c} determining a rate of return in excess of which the parties will negotiate terms to adjust f nancia� assistance based on future perfor�ance {referred to as "look back"). 2. The IRR analysis described in this resolutioi3 relates only to the Developer's raIe as developer of the �and, and not as developer of speeific improvements on the land. The Ciiy intends to develop a separate standard for 1RR (or other measure} for the developers of indivic�ual inapz-avexnents, which wil� also be incorporated in the MDA.