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<br />ARDEN HILLS CITY COUNCIL - MARCH 12, 2007 <br /> <br />9 <br /> <br />Mr. Bubul pointed out the requested changes to Section 6, lOB and 10D. The last provision in <br />10D, CRR has not accepted due to potential liability of different. scenarios. CRR is concerned <br />with the City defaulting. Two options for the Council to consider are to approve the agreement <br />with the language removed or to get legal counsel to request additional talks with CRR. <br /> <br />Mayor Harpstead asked about other imposed language being removed or included from the last <br />meeting (at CRR's suggestion) and Mr. Bubul stated that the words removed or included were <br />not substantive. <br /> <br />Councilmember Holmes asked about the agreement in which Mr. Bubul stated that some <br />scenarios are not spelled out if the City defaults. Mr. Bubul replied the difficulty has been that <br />CRR would like to spell it out, but the City would not like to do that. The City wants to spell out <br />CRR liability, but not the City's liability. <br /> <br />Councilmember Holmes commented about section lOA and that the City would only rescind or <br />terminate according to section lO(a), therefore the money would be returned. Mr. Bubul replied <br />that the argument of CRR is that is what the contract says, but what if the City does, for some <br />unknown reason, rescind the contract. <br /> <br />Mayor Harpstead clarified that the City would not get the money from the federal government. <br /> <br />Mayor Harpstead reiterated that the City has agreed to work with CRR as the developer, with <br />that said, things can fall apart in ways that are unexpected and things that fall apart in expected <br />ways are already covered. Part of the process is to use outside experts we had previous interim <br />agreement but those agreements have ended so Council has set out to create another interim <br />agreement to enable the City and CRR to write the fmal plan agreement. Part of the reason the <br />City took on a developer was to have the developer assume part of the risk. <br /> <br />Councilmember Grant stated that he was part of the Council during the first and second interim <br />agreement and the City was very risk adverse to the development of the property, which is why <br />they hired CRR. <br /> <br />Councilmember Grant asked if the attorneys for CRR were internal or external. Mr. Bubul <br />replied that is was outside counsel of Fredrickson and Byron. <br /> <br />Mr. Bubul stated that the agreement has always been with CRR and they are now going through a <br />name change to Ryan Rehbein Land Development (RRLD). <br /> <br />Rick Collins, VP of Development, Ryan Companies, stated that RRLD would like to have a <br />direct contract with the federal government, but the government doesn't allow it, therefore RRLD <br />needs an agreement with the City, which in turn has the agreement with the federal government. <br />He stated that if the City rescinds but the GSA doesn't agree with the recession, the City would <br />not get the earnest money back and RRLD would lose their money. RRLD and the City would <br />then work together to get the money back from the GSA. If after all avenues had been exhausted <br />and the GSA still did not return the earnest money, then RRLD would concede and not pursue the <br />City for the earnest money. However, if the City refuses to assist RRLD in pursuing the return of <br />