Laserfiche WebLink
In this case, we would define a Development Agent as a public-private collaboration that spreads <br />financial burden across two or more entities that ensures a more predictable payback on public <br />investments over time. <br /> <br />The legal structure is a development agreement under which the developer provides staffing for <br />marketing, they identify fellow developers (residential, office, retail or commercial partners) who can <br />assist in implementing the overall master plan, and they design, finance and construct "secondary <br />infrastructure". It includes a purchase agreement that identifies a price and take-down schedule for the <br />land in the overall project based on market “absorption” projections. The Development Agent's ability <br />to bring in sub-developers is key to this process. The Development Agent would have exclusive rights, <br />but would be able to delegate or partner with another developer. Additionally, the County and JDA <br />would retain the right to bring any previous or future parties who had shown interest in the site to the <br />Development Agent apart from any solicitation by the Agent. <br /> <br />This is not a new approach; several high-profile projects in the Twin Cities market have used this method <br />including Centennial Lakes in Edina and the West End in St. Louis Park. In both cases, development <br />agreements with the developer spelled out specific requirements, timelines, subsidies and roles and <br />responsibilities of both the developer and the municipality. Both projects were complex and included <br />multi-year implementation. <br /> <br />This method does not mean that the County would collect a lump-sum payment at the end of successful <br />negotiations with the Development Agent. It does mean that the County would seek, at a minimum, a <br />“break-even” arrangement over a period of years. The County would have the benefit of a collaborative <br />structure without the loss of control that would come with an outright sale. The County would also <br />preserve the ability to respond quickly to any major commercial development that would meet the <br />Board’s job creation goals. This is a complicated project, and an additional benefit of working with a <br />Development Agent would be that we would need to educate one developer on due diligence items — <br />not several. Finally, it would not be a permanent arrangement, in that it would include an “out” clause <br />for both parties that could be exercised in the case of poor performance or market impacts. <br /> <br />Process <br />We would recommend a process that would solicit developers nationally. We would propose utilizing <br />the Urban Land Institute (ULI) network to ensure the broadest scope of attention for the solicitation. <br />Further, staff would be able to reach out to any specific developer upon the recommendation of <br />Commissioners, consultants or other entities such as the City of Arden Hills. <br /> <br />Sample Evaluation Criteria: <br /> <br /> Financial wherewithal <br /> Marketing experience and staff capacity <br /> Ability to meet goals <br /> Developer vision or re-state the vision of the City/County--are they supportive of what they've <br />seen or not? <br /> Relationship structure--how constructive will they be in the relationship and deal structure