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Hanson, Joel <br />From: Paul Tucci [Paul @oppidan.com] <br />Sent: Tuesday, September 11, 2001 12:56 PM <br />To: ' Joel .hanson @ci.little- canada.mn.us' <br />Subject: Rice Street & Little Canada Road <br />Joel: <br />Here is what we would consider for the site, returns as follows: <br />The equity would receive a 25% annual preferred return on the <br />investment. This would also apply to any deferral of fees that are used <br />for equity. <br />Developer would receive the next $175,000 of profit, after the payment <br />of the preferred return. <br />The next $75,000 would be paid to the city as a return of investment. <br />The balance would be split 50% to the city, and 50% to the developer. <br />The developer would split its funds accordingly to itself and the equity <br />partners. <br />In lieu of this arrangement, we would offer our development services to <br />the city for the payment of $225,000. In this regard, all costs would <br />be absorbed by the city as the development goes forward and the city <br />would have all approval rights on Leases, etc. and would garner all <br />profit from the development. <br />With regard to the RAP with the State of Minnesota, it is our intention <br />to have an "off the record" discussion with the state to see where they <br />fall. We do not want to spend the dollars for a full blown report <br />without any reimbursement for the owner of the site (either the city or <br />the Guerin's). Hopefully we can get a feel from the state and we can <br />move forward. <br />I will forward to you an e -mail I received earlier today regarding the <br />leasing on the site. This is based on the first mailing and response. <br />Paul <br />Page 5 <br />