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Department Approval <br />��. .�: �� <br />Item Description: <br />l�'�, <br />Jy <br />REQUEST FOR COUNCIL ACTION <br />Date: 03/23/09 <br />Item No.: 7.d <br />Acting City Manager Approval <br />� .�: �� <br />Authorize Legal Proceedings Pursuant to the Centre Pointe Redevelopment <br />Agreement with Ryan Companies <br />BACKGROUND <br />At the December 3, 2007 City Council meeting, the Council held a discussion on whether to grant <br />contractual relief to Ryan Companies in conjunction with the redevelopment agreement pertaining to the <br />City's Centre Pointe area. At the conclusion of the discussion, the Council voted 4-1 to reject the request. <br />Ryan Companies was made aware of the Council's decision in a letter from Staff dated December 6, 2007. <br />This was followed up by another letter from Staff dated February 25, 2008 to Ryan Companies formally <br />requesting that they remit a check to the City in the amount of $93,574, which represented their remaining <br />obligation under the terms of the Agreement. <br />Since this time, Ryan Companies has continued its efforts to obtain contractual relief. The City Attorney <br />was asked to issue a follow-up response and to inform them of our intentions to collect the amount owed. <br />A copy of this letter is attached. To date, Ryan Companies has not paid the City. As a result, Staff is <br />seeking Council authorization to pursue legal proceedings to collect. <br />POLICY OBJECTIVE <br />The City is owed $93,574 in conjunction with the Redevelopment Agreement referenced above and has <br />exhausted all diplomatic efforts to collect these monies. It is in the public's interest to initiate legal <br />proceedings to recoup what is contractually owed to the City. <br />FINANCIAL IMPACTS <br />The costs of the legal proceedings will be initially paid by the City's Risk Management Fund. The City <br />will seek to recover legal costs in conjunction with this effort. <br />STAFF RECOMMENDATION <br />Staff recommends the Council approve the attached resolution authorizing the City Attorney to initiate legal <br />proceedings to recover the amounts owed under the Centre Pointe Redevelopment Agreement. <br />Page 1 of 4 <br />