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ARDEN HILLS CITY COUNCIL— SEPTEMBER 28, 2015 5 B. Assignment of Development Agreement — Arden Plaza LLC and Frattallone LLC Councilmember Holmes requested further information regarding this item from staff. She believed that this item was important enough and should not have been on the Consent Agenda. Associate Planner Bachler discussed the proposed assignment development agreement between Arden Plaza, LLC and Frattallone, LLC. He noted that Arden Plaza, LLC has requested approval of two separate agreements in order to clarify certain terms and obligations between the parties. He reported that if these terms or responsibilities were not being met by Frattallone, LLC the City could then follow up with this property owner and would not have to be in contact with Arden Plaza, LLC. Councilmember Holmes expressed concern with being a part of this agreement. She believed that the agreement should only be between the two parties involved. She then provided further comment on the Release of Seller. City Attorney Jamnik discussed how the agreement came to the City. He advised that Arden Plaza, LLC was interested in selling two lots. He reported there was little in this transaction for the City but to provide a zoning letter. He commented that the City's involvement was only to provide this assistance and would therefore release the Seller from obligations and allow these to be transferred to the Purchaser. He was satisfied with the obligations spelled out within the agreement and did not believe the City would assume any undue risk. Councilmember Holmes expressed concern with why the Seller was requesting the City be involved. She feared that not all scenarios were planned for and questioned how the City would react to that situation in the future. She was in favor of the City not being involved in these agreements. Further discussion ensued regarding the terms and conditions within the agreements. Councilmember Holden asked what leverage the City had with the Purchaser. City Attorney Jamnik reported that the City had letters of credit with both Purchasers, as well as the right to assess both properties for any necessary improvements. Councilmember McClung suggested that staff review these agreements further in case there were additional items that needed consideration or rewording. City Attorney Jamnik noted that the parking spaces and striping were the only areas of most concern to staff at this time. He did not feel it was necessary to delay the agreements and closing for these issues. Councilmember Holden questioned why the Council should support this agreement if Frattallone, LLC has already closed on the sale of the property.