The URL can be used to link to this page

Home My WebLink About05-29-07 Item 7E, Amendment #2 to Preliminary Development Agreement with RRLD ~ ~HILLS Request for Council Action Prepared By: Dept.: Council Mtg. Date: Final Action Needed By: Michelle Wolfe -"-AcfmTnistratio"n""" _M,,}'_29L~OOZ_ _M~}'~~,2QO? Agenda Item: 7 E . . Amendment #2 to the Development AgreemenfwlthnRRT..D,Tfc:- Budgeted Amount: NA- Actual Amount: "".. .,"". n. "'~iA Funding Source: -- ---------------------- '"NA ~I~gl~.llI11~~~ili.~1]y'?iJf,:b~~ ....................................._......___.____.____________~__~"."."_."__."~."._".".,.._ .........................__........... "'____._._,,___.________________________ Approval of Amendment #2 to the Preliminary Development Agreement with RRLD Dated March 30, 2007 Staff Recommends Approval of Amendment #2 to the Preliminary Development Agreement with RRLD Dated March 30, 2007 Planning: PTRC: X Memo/Letter: Memorandum Dated May 29, 2007 from City Administrator Michelle Wolfe Resolution No.: Ordinance No.: --- Engineering Recommendation: Attorney Recommendation: X Other: Amendment #2 to the Preliminary Development Agreement with RRLD Dated March 30, 2007 ~ ~ILLS MEMORANDUM DATE: May 29,2007 AGENDA ITEM 7.E. TO: Mayor and City Council FROM: Michelle Wolfe, City Administrator SUBJECT: Approval of Amendment #2 to the Preliminary Development Agreement with RRLD dated March 30, 2007 BACKGROUND The City of Arden Hills is currently conducting a Master Planning process for TCAAP redevelopment. As part of that proj ect, several transportation improvements will be needed. In terms of phasing and priority, it has been determined that improvements to the County Road H Interchange will be the first improvement needed for the project. The second improvement needed in terms of timing is the Highway 10 and 96 improvement project. However, with the additional time required for right-of-way acquisition and time to review environmental conditions, it is advised to start the pre-design engineering phase at this time. The City has been working with the developer (RRLD) to identify funding options for these transportation projects. DISCUSSION The strategy for Highway 10 and 96 funding includes a few options. The County has "turn- back" funds available for the Highway 96 portion of the project. The City and RRLD are also pursuing State of Minnesota funds for this project. Our State legislative representatives submitted "introductory" legislation last week, indicating the City's intent to request funding for this project from the State General Fund as well as through the Governor's Bonding bill. RRLD is willing to fund the pre-design engineering work, however, they are requesting that the City take steps to ensure that these expenditures have the ability to be reimbursed if other funding is secured at a later time. The anticipated budget for this work is $307,000. In order to meet a 2009 construction timeline, pre-design work would need to begin June 15, 2007. The benefit of starting the project in 2009 is that it allows the possibility of substantial project completion and function at the end of 2010. There are two actions requested of the Council. The first is to approve a Second Amendment to the Preliminary Development Agreement (PDA) with RRLD (attached). As Council is aware, the approved PDA includes language regarding developer reimbursable costs. (Section 5(t) 2). This expenditure for Highway 10 & 96 pre-design would become an additional item on Exhibit E of the PDA. This means that if the PDA is terminated before its expiration, or the term expires with or without an MDA, and the City within two years after the effective date of termination or expiration enters into a definitive development agreement with another developer, then the City will reimburse the developer for this cost under the terms described in Section 5 (f) (2) and Exhibit E. The Second Amendment to the PDA also states that the City will reimburse the developer for pre-design costs if the City receives grant funds from the federal government, State of Minnesota, Ramsey County, or Metropolitan Council during the term of the PDA. (This is the same langnage you recently approved in Amendment #1 of the PDA, as it applies to the proposed County Road H interchange project.) The second requested action by Council is to approve Resolution No. 07-59 (See Agenda Item 7.F.) This resolution is proposed in order to establish the pre-design funds as eligible for reimbursement should other funds be secured for the project. This resolution refers back to the Second Amendment ofthe PDA. ACTION REQUESTED 1. Motion to Approve Second Amendment to the Preliminary Development Agreement between the City of Arden Hills and RRLD, LLC. Attachments MW \\metro-inet\ardenhills\Admin\City Administrator\Memo\2007\5-29-07 Amendment #2 to PDA-doc SECOND AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT TillS AGREEMENT is made and entered into as of this 29th day of May, 2007 by and between the CITY OF ARDEN HILLS, a Minnesota municipal corporation (the "City"), and RRLD, LLC, a Delaware limited liability company (the "Developer"). RECITALS WHEREAS, the City and Developer entered into that certain Preliminary Development Agreement dated March 30, 2007 as amended by the First Amendment thereto dated April 30, 2007 (the "PDA"), and WHEREAS, the parties have determined a need to amend the PDA as further described herein; NOW, THEREFORE, in consideration of the covenants and obligations of the parties hereto, the City and the Developer hereby agree as follows: 1. Section 5 of the PDA is amended to add a new paragraph (g) as follows: (g) The City and Developer have determined that the Development may require certain improvements to the interchange of County Road 96 and U.S. Highway 10 (referred to as the "96/10 Interchange Project"). The City proposes to apply for grants from the federal government, the State of Minnesota, Ramsey County and the Metropolitan Council to pay all or part of the costs of the 96/10 Interchange Project. However, in order to proceed with that project on a timely basis, the Developer agrees to undertake and pay all costs of pre-design (and similar preliminary work that is usual and customary for road and interchange projects) for the 96/10 Interchange Project. The City will promptly reimburse Developer for such preliminary costs if and to the extent the City receives grant funds from any sources named above. Any Developer expenditures under this paragraph are in addition to, and not part of, the City Reimbursable Costs described in Exhibit D. However, if and to the extent Developer is not reimbursed for any 96/10 Interchange Project pre- design costs during the term of this Agreement, such costs incurred by Developer will be Developer Reimbursable Costs, subject to all the terms and conditions of Section 5(f)(2) and Exhibit E of this Agreement. The City has no obligation to reimburse Developer for any 96/10 Interchange Project costs except to the extent provided in this paragraph and Section 5(f)(2). 2. Exhibit E of the PDA is hereby modified to add as Item 9: Pre-design for 96110 Interchange Proj ect. 3. The PDA remains in full force and effect and is not modified except as expressly provided herein. IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and behalf and the Developer has caused this Agreement to be duly executed in its name and behalf on or as of the date first above written. CITY OF ARDEN HILLS, MINNESOTA By: Its Mayor By: Its City Administrator 2 RRLD, LLC, a Delaware limited liability company By Ryan Companies US, Inc., a Minnesota Corporation Its Manager By: Its Vice President 3