HomeMy WebLinkAboutCCWS 12-11-06
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Approved: 2/12/07
CITY OF ARDEN HILLS, MINNESOTA
WORK SESSION MEETING
DECEMBER 11, 2006; 6:30 P.M.
ARDEN HILLS CITY COUNCIL CHAMBERS
CALL TO ORDER/ROLL CALL
Pursuant to due call and notice thereof, Mayor Beverly Aplikowski called to order the
work session meeting at 6:35 p.m.
Present:
Beverly Aplikowski, Gregg Larson, David Grant, Vincent Pellegrin,
Brenda Holden (arrived at 6:40)
Absent:
None
Also present were: City Administrator, Michelle Wolfe; Community Development
Director, Karen Barton; and Attorney Steve Bubul, Kennedy and Graven
Preliminarv Development Al!:reement Discussion-
Karen Barton stated that Steve Bubul from Kennedy and Graven law firm was here to provide an
update on the status ofthe preliminary development agreement with CRR, LLC.
Mr. Bubul distributed a snnunary of key-issues to the Council and discussed each issue:
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Developer Mileposts
City and Developer's rights to terminate the Offer to Purchase
City Reimbursable costs and security
Developer Reimbursable costs
Rights of transfer
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Councilmember Brenda Holden asked how the City reimbursable costs are calculated.
City Administrator Michelle Wolfe responded that the costs would be determined through
proposals and best estimates.
Councilmember Gregg Larson asked Mr. Bubul if there are any differences between this
preliminary development agreement and other agreements that he has put together in the past.
Mr. Bubul replied that the proposed preliminary development agreement is similar in many
ways, but different in regards to the scope and size of the project and the amount of money that
the developer is investing.
ARDEN HILLS CITY COUNCIL - December II, 2006
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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.
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I~A. Wolfe
City Admimstrator
\\Metro~inet.us\ardenhills\Admin\Council\Minutes\Special\2006\12-11-06 Work Session Minutes.doc