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shared project sale proceeds, subdistrict revenues, Metropolitan Council, State, and EP A grants and recovery of environmental clean-up costs from previous property owners. In 1990 the City contacted numerous developers to take the lead in redeveloping the area in accordance with the Twin Lakes Redevelopment Land Use Plan. Originally, Trammel Crow Company approached the City and began negotiations with City staff to develop the area. Unfortunately, that deal fell apart and the City then tried to identify additional potential developers. City staff contacted brokers, realtors and also members ofNAIOP to try to identify two or three additional developers to carry out the Twin Lakes plan. Developers expressed reluctance to accept the risk of being the first to redevelop the area. Ryan Companies, Minneapolis, however, stepped forward and negotiated a development agreement with the City. The agreement specified that the City would provide up-front funds from its tax: increment financing pool to assist in land acquisition, demolition, and clean up. Ryan Companies would, in turn, redevelop the sites and provide the City with shares of cash flow and proceeds from the sale of projects in the future to repay the City's initial investment. As part of the development assistance agreement approved in 1992, Ryan Companies has the right of first offer to develop a portion of the property in the Twin Lakes Redevelopment Area. This area, as it is currently defined, contains approximately 108 acres, or approximately 60% of the total Twin Lakes Redevelopment Area. (Refer to Twin Lakes Development Status Map). The City must provide a notice of the intent to pursue development of the property within the subdistrict and is required by its existing agreement with Ryan Companies to provide Ryan with the right of first offer to enter into a development agreement for the property. This applies to any development within the Twin Lakes Development Subdistrict where 10% or more of the new development is proposed to be office, medical, showroom or other light industrial development. If the City receives an offer for development from any other developer, the City, before accepting that offer, must offer the same agreement to Ryan Companies for development of the same property at no less favorable terms and conditions than those contained in the agreement with another party, Ryan Companies then has 20 business days to accept the agreement (if they have secured control or ownership of the property). If Ryan fails to exercise its first right within 20 days, its rights are deemed waived and the City can pursue development with the other developer. The first offer rights in the agreement run until November 24, 2003. If the City fails to notify the developer in writing 60 days prior to that date of expiration, then the expiration date is automatically extended to November 24, 2008, Actual development which has occurred to date includes the construction of a 48,000-square-foot office-flex building, a 74,500 s.f. office-flex building, a 66,000 s.f. medical office building, a 35,000 s.f. office-flex building and a 105,000 s.f. office-flex building. It is estimated that these developments have generated over 1,150 jobs with an annual payroll of approximately $27 million. In the future, and based on the new development to date, when the redevelopment of the Twin Lakes Redevelopment Area is complete, the trucking and outdoor storage gradually will be replaced by a more contemporary mix of high quality office, medical facilities, limited light industrial and office/showroom buildings, complementary commercial businesses and multiple housing with a focus on the natural environmental amenities adjacent to the area, 11