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ARDEN HILLS CITY COUNCIL - December II, 2006 2 Councilmember David Grant noted that the developer is investing a substantial amount of money in the proj ect, but that they also stand to make a substantial profit. Attorney Steve Bubul stated that since CRR is still negotiating, he assumes that they believe that they will make a profit. Councilmember David Grant asked what the financial risks to the City are. Attorney Steve Bubul responded that the City's only real risk is in the amount of security provided by CRR. The City's risk is minimal. Councilmember David Grant asked Mr. Bubul ifhe felt comfortable with the risk. Mr. Bubul responded that he felt comfortable that we would reach an acceptable agreement and added that the developer is well-known and that he feels much more secure with their financial abilities. Councilmember Brenda Holden asked ifthe Developer's right to terminate would carry through to the Master Development Agreement. City Administrator Michelle Wolfe responded that it only applies to the Offer to Purchase. Councihnember Brenda Holden asked how the budget will be determined. City Administrator Michelle Wolfe replied that staff will obtain quotes from consultants and then put together a budget that will be reviewed by the City Council. City Administrator Michelle Wolfe stated that the Developer Reimbursable cost is a key issue. We've limited the scope and want to keep it limited. She also noted that this type oflanguage is not unusual in these types of agreements. Mayor Beverly Aplikowski requested that the time limit for the Developer Reimbursable costs be limited to two years. the Work Session meeting at 6:58 p.m. / I~A. Wolfe City Admimstrator \\Metro~inet.us\ardenhills\Admin\Council\Minutes\Special\2006\12-11-06 Work Session Minutes.doc