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Home My WebLink About04-09-07 Item 7F, Consultant Relating to TCAAP Master Development Agreement ~ ~HlLLS Request for Council Action Council Mtg. Date: Final Action Needed By: 04/09/07 Agenda Item: Motion to approve consulting services with Kennedy and Graven Chartered~ per the letter of engagement originally dated September 8, relating to the Preparation of the .mmm...__..m_.__ TCAAP Master Development Agreemen~ Budgeted Amount: ----- ",$150,000,00 Actual Amount: '.',',',' ,',,'uu"i1so,ooo:OO Funding Source: Reimburs-eme:.r.!t 6iRRLo;" LLC 7F Prepared By: Karen Barton ______m.______.__ Dept.: Community Development Motion to Approve Consulting Services with Kennedy & Graven LLC, per the of originally dated September 8, 2006, Relating to the Preparation of the TCAAP Master Development between the City and RRLD, LLC, in an Amount Not to Exceed $150,000 Approval Services with Kennedy & Graven Chartered, LLC, per letter of engagement dated September 8, 2006, Relating to the Preparation of the TCAAP Master Development Agreement between City and RRLD, LLC, in an Amount Not to Exceed $150,000 x -"- 04/03/07 No.: y No.: Recommendation: Auomey Recommendation: X IOther: Letter dated September 8, 2006; Preliminary Development Agreement ~FJnan:~JJItQ1i~E~HQ~~mlji;sjli!j;fff!fZ:jl~I~G5ft1I~~"..,,,,_"_.,_.'_.'nn_________n__nn________nn___nn_n_'.__...."",.,,,,..,,,,,,,,,...'''__''_n____nn___________n__nn__mn_nn'n_'"",,,,,,,,........,,,,""""'..n"___"__nnnnn_____n__n___n'n....'..'"''''''..''''''''n'n__n_____n______n__n_nnn_.'''''''.....''''''''''''''n_on' i The Preliminary Development Agreement between the City and RRLD provides for reimbursement of Kennedy & Graven's services up to i , $150,000,00 ' ~ ~ EN HILLS MEMORANDUM DATE: April 3, 2007 Agenda Item 7F TO: Mayor and City Council Michelle Wolfe, City Administrator ~ Karen Barton, Community Development Director FROM: SUBJECT: Kennedy & Graven Chartered Consulting Services The City has been utilizing the legal consulting services of Kennedy and Graven Chartered since September of last year to assist with the negotiation and development of a Preliminary Development Agreement between the City and RRLD, LLC relating to the purchase and redevelopment of the Twin Cities Army Ammunition Plant excess property, On March 30 oftbis year, the Preliminary Development Agreement (PDA) between the City and RRLD, LLC was fully executed, The terms of this agreement provide for the reimbursement of costs associated with Mr. Bubul's services relating to the TCAAP project, with a budgeted amount of $150,000. (See Attachment A, copy ofPDA Exhibit D, Budget), I have attached the original letter of engagement, dated September 8, 2006, for Kennedy & Graven's services (Attachment B), The letter of engagement is effective through 2007 and therefore there will not be any rate changes until after January 1,2008, Staff Recommendation Staff is recommending Council approve Consulting Services with Kennedy and Graven Chartered, per the letter of engagement originally dated September 8, 2006, for the negotiation and preparation of a Master Development Agreement between the City and RRLD, LLC relating to the purchase and redevelopment ofthe TCAAP excess property, in an Amount not to Exceed $150,000 City of Arden Hills City Council Meeting April 9, 2007 \lMetro-inet.uslardenhills\PlanningICommunity DevelopmentlCouncil Agenda ItemslSteve Bubul Consulting Services Memo 040907.doc Page I of I Council Meeting Agenda Item 7F April 9, 2007 ATTACHMENT A EXHIBIT D BUDGET OF CITY REIMBURSABLE COSTS Consultant Scone of Services Budl!et SRF(EnvrronmenmISrvcs) . AUAR Environmenml Study $250,000 . Preparation of AUAR process schedule . Initialize EA W with nnique AUARitems . Esmblishment of Pnblic Involvement Process . Assemble elements of the AUAR . Author [mal document . Meetings . Review of environmental documents as needed Spencer Fane Britt & Browne . Legal Services relating to the $150,000 Mike Comodeca (Legal Services) Transfer Process . Offer To Purchase . Review of Transfer Documents . Negotiations with GSA and Anny . Meetings & Travel Kennedy & Graven . Negotiation and Preparation of $150,000 Stephen Bubul (Legal Services) Development Agreements . Review of Legal documents as needed . TIF related legal review . Meetings BCS Consnlting Services . Project Management Consulting $75,000 Dennis Welsh (project Management . Review of documents as needed Services) . Project assistance as needed . Council education . Grant Assistance . Meetings Engineering Services . Engineering review and $40,000 consultation EWers & Associates . Provide fiscal analysis of $150,000 (Financial Consultant Services) development agreements 0-] Council Meeting Agenda Item 7F April 9, 2007 ATTACHMENT B Kennedy C H ART ERE D 470 u.s. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337-9300 tel'phon, (6l2) 337-93lO f", http://www.kennedy-graven.com Graven STEPHEN J. BUBUL Attorney at Law Direct Dial (612) 337-9228 Email: sbubul@kennedy-graven.com September 8, 2006 Karen Barton Community Development Director City of Arden Hills 1245 W, Hwy 96 Arden Hills, MN 55112-5743 RE: Legal Services Dear Karen: I enjoyed meeting with you and Michelle Wolfe last week about the City's upcoming redevelopment of the Twin Cities Army Ammunition Plant (TCAAP) site, and look forward to working with you on this ambitious effort. I understand that you have engaged us to provide legal services related to the public financing and related redevelopment aspects of the TCAAP project. The primary activity would involve a master development agreement with the development partners for the project, along with related activities (such as review and consultation with Ehlers & Associates and other consultants in connection with establishment of one or more tax increment financing districts). In addition, we would serve as bond counsel in connection with bonds (if any) issued for the project and related infrastructure. Our proposed fees for this work are $285 per hour for any matters subject to reimbursement by private parties; and $190 per hour for any matters paid by the City or EDA and not reimbursable by private parties, Work performed by law clerks and paralegals, if any, would be billed at $110 per hour. These rates would be in effect through 2007, and would be subject to adjustment at that time, We bill out-of-pocket costs for such things as postage, long distance telephone calls, and computer assisted research, The following is representative of these types of charges (subject to annual adjustment): Photocopying Charges Facsimile Charges Mileage Charges Westlaw or Lexis Fees Messenger/Express MaiVLong distance telephone $ ,20 per page; $lIpage color $ .50 per page, $ .445 per mile (or IRS rate) $ Actual Cost $ Actual Cost 297567vl 518 AR20Q-4 Karen Barton September 8, 2006 Page 2 We provide invoices on a monthly basis, showing the time spent on each activity. We can of course accommodate any other bilJing system that you prefer. Ifbonds are issued, the fee is determined at the time of issue (and is typically paid from proceeds of the bonds). I understand that there are no current plans for issuance of tax increment bonds for the TCAAP project, though there may be financing structures that call for some combination of taxable and tax-exempt revenue obligations. Also, I understand there may be a need for issuance of general obligation improvement and/or utility revenue bonds. Please let mek..'1ow ifthcse t.:::rm8 are acceptable, and if you have any other questions. ly yours, 1 Steph ], Bubul 297567vl SJB AR200-4