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REQUEST FOR COUNCIL ACTION DATE: 10/13/03 ITEM NO: Department Approval: Manager Approved: Agenda Section: DPW/CB REPORTS Decide on Ryan Twin Lakes Designated Developer Status (PF3232) Item Description: 1.0 REQUEST: 1.1In the past the Council has asked for how to conclude the designated developer status within Twin Lakes. By resolution, the City Council can choose to conclude the first offer obligation with Ryan Companies as part of the Development Agreement dated June 28, 1995 as amended. By November 24, 2003, but no sooner than 60 days prior to that date, the City Council must decide whether to retain Ryan as the designated developer for the Twin Lakes Development Subdistrict containing 108 acres. If the Council chooses not to approve the resolution to conclude the first offer obligation, the term of that agreement will continue until November 24, 2008. Other options are available as well such as designating a master developer, a master developer with specialty sub-developers; co- developers or requesting master proposals. 2.0BACKGROUND : 2.1 The development agreement with Ryan Companies has been in place since 1993 and amended in 1995. The original purpose was to find a developer interested in redevelopment and provide incentives to be the ?pioneer redeveloper? of the contaminated brownfield areas. At that time it was felt that by having one developer working within a subdistrict and using an approved master plan, the cost of subsidy would be reduced by not allowing the property to be ?bid up? by other competition, only The designation allowed Ryan to have to be written down by additional tax increment. the ?first offer right? to use TIF on any parcel within the subdistrict. 2.2 Ryan Companies has been the pioneer in Roseville redevelopment. Roseville?s policy has been to work with private sector development partners who can plan, design, finance, and construct new development. In 1992-3 no other development company showed interest in Twin Lakes except Ryan. After being designated the developer for the first 10 years of redevelopment, Kent Carlson and Ryan Companies constructed four buildings in Twin Lakes for a total of nearly 326,000 square feet, valued at over $20,000,000, creating more than $500,000 in new property taxes. That translated into over 1,000 new jobs in a diverse group of industries. As the designated developer, Ryan, through Kent Carlson, promoted and recruited new business to Roseville. 2.3 Ryan and the City worked through the difficult demolition of the Mack Hotel and a number of truck terminals. Ryan and the City were the first to use the Minnesota Pollution Control Agency?s new Voluntary Clean-Up (VIC) contamination clean up