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The costs identified above are expected to be recouped through two separate means. First, the Contract for Exclusive Negotiations signed with the Rottlund Company, provides for the reimbursement to the City, by Rottlund, under certain conditions. Should the City sign a redevelopment agreement with Rottlund, Rottlund must reimburse the City in the amount of $35,000 to offset the costs of the Stakeholder Advisory process. Rottlund will also be responsible for a portion of the costs associated with the creation of the TIF district, as well as the preparation and negotiation of the Redevelopment Agreement. A copy of the applicable Contract for Exclusive Negotiations is included in Attachment A. It should be noted, that if the City elects na� to sign a RedevelopmentAgreementwith Rottlund, then no reimbursement(s) will take place. The remaining costs included in the table above as well as future administrative costs is expected to be repaid through the capture of future tax increment revenues generated from a Twin Lakes TIF District. The repayment of these administrative fees is allowed under State Statute, and is included in the current Twin Lakes Financing Sources and Uses Statement. A copy of the Financing Sources and Uses Statement is included in Attachment B. While difficult to forecast, Staff estimates that the negotiation costs associated with the Redevelopment Agreement, along with the TIF creation costs could result in an additional $50,000 — 100,000. Again, assuming a Redevelopment Agreement is signed with Rottlund, the City would receive reimbursement for approximately one-half of these additional costs. Discussion on the Use of Consulting Services The costs associated with the consulting services noted above, have been either directly authorized by the Council, or in some instances deemed necessary, given the Council's requests for information. The services provided by the firms of Minnesota Solutions, Dahlgren Shardlow & Uban, and SRF Consulting were specifically authorized by the Council as part of the Council's 2003 Legislative Program, the Twin Lakes stakeholder process, and the required AUAR study, respectively. The services provided by Krass Monroe, Maxfield Research and others, were obtained in response to various Council inquiries on financing scenarios and market analyses. In further regard to the firm of Krass Monroe, in 2002 the Council did approve the use of their services on a case by case basis. In development projects of this magnitude, it is not unusual for a City to incur costs of this type or in these amounts. The research and analyses necessary to inde�endentlX determine whether their should be a project, typically falls on the City. Once a project is approved, the burden typically shifts to the developer. Through the use of a Master Development Agreement, and eventual Redevelopment Agreement, the City is afforded the opportunity to recoup a substantial portion of its costs. Should the Council wish to more formally define the scope of services provided by consultants, they are advised to consider; the desired amount of information, the expertise and availability of staff, and the value of having independent reviews. �