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<br />~ <br /> <br /> <br /> <br />MEMORANDUM <br /> <br />DATE: <br /> <br />May 11, 2009 <br /> <br />TO: <br /> <br />Mayor and City Council <br /> <br />FROM: <br /> <br />Ron Moorse, City Administrato1; <br /> <br />SUBJECT: <br /> <br />TCAAP Offer to Purchase and Preliminary Development Agreement <br /> <br />Back2round <br /> <br />The City currently has in place an Offer to Purchase (OTP) with US General Service <br />Administration (GSA) for a portion of the Twin Cities Army Ammunition Plant (TCAAP) <br />property and a Preliminary Development Agreement (PDA) with RRLD. RRLD has notified the <br />City, via the attached letter, of their intention to terminate their agreement to acquire and <br />redevelop a portion of TCAAP. The developer filed its notice to terminate because it determined <br />that the project has become economically infeasible. The letter also requests the City forward to <br />GSA a notice of rescission of the OTP. The Council has reviewed the implications of the letter <br />in relation to the OTP and the PDA. <br /> <br />The two options available to the Council regarding the OTP are as follows: <br /> <br />1. Provide a notice of rescission of the OTP, which would result in termination of the <br />existing OTP between the City and GSA. <br />2. Request GSA to extend the OTP, and make an effort to obtain a new developer under the <br />current OTP. <br /> <br />A conference call with Army/GSA was scheduled for Friday afternoon, May 8. The results of <br />that call will be provided to the Council prior to the Council meeting. <br /> <br />Action Reauest <br /> <br />1. Motion regarding authorizing the delivery of a notice of rescission under the OTP to <br />GSA. <br />2. Motion regarding the acceptance ofRRLD's termination of the PDA. <br /> <br />I \A hdocsl\ ah \AHdata IPlann ing I Community DevelopmentITCAAP\OTP\051109 - agenda Memo_TCAAP otp and pda 5-5-09.doc <br />