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ARDEN HILLS CITY COUNCIL - July 28, 2008 8 Mr. Bubul stated that he had prepared the resolution. MOTION: Mayor Harpstead moved and Councilmember Holden seconded a motion to Approve Resolution 2008-037: A Resolution Designating the Rate of Return for Purposes of Negotiation Between the City and RRLD. MOTION: Councilmember Grant moved and Councilmember McClung seconded a motion to amend the second Whereas to insert the phrase "and continues to evaluate" after the word evaluate and the third Whereas to insert the phrase "and negotiable" after the word maXImum. Councilmember Holmes stated that during discussions it was stated that the rate of 15% as a maximum benchmark was not going to be negotiable. Mayor Harpstead stated that the resolution does state that this IS negotiable because it is not a firm number. Mr. Bubul stated that the concept was if Council approved this resolution it would be viewed as direction that would be used when evaluating if this project is feasible and if it needs assistance and 150/0 would be used as the benchmark. Mayor Harpstead asked if the numbers come out to the developer's advantage if the rate of return could be other than 150/0. Mr. Bubul stated that there are other things besides the rate of return that will be negotiated. He also stated that this resolution gives the team a point to move forward from. Mayor Harpstead stated that in the third Whereas the proposed word could be benchmark rather than negotiable and this would still provide the negotiating team with the guidance the City wants. Councilmember Grant stated that the wording needed to be clear and the word negotiable accomplished this. Mayor Harpstead stated that there would be other points that needed to be negotiated throughout the process and if the Council continued to negotiate the benchmark then the process would be stalled.