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c ,* 9daceemeeek <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve Morelan <br />Bob Pedersen <br />515 Little Canada Road, Little Canada, MN 55117-1600 ADMINISTRATOR <br />(651) 484 -2177 / FAX: (651) 484 -4538 Joel R. Hanson <br />Email: cityhall @ci.little- canada.mn.us <br />MEMORANDUM <br />TO: Mayor Fahey & Members of the City Council <br />FROM: Joel Hanson, City Administrator <br />DATE: October 20, 2000 <br />RE: Biagini Development Agreement <br />The 30 -day notice of default provision contained in our development agreement with RAB, LLC <br />expired on October 18th. Our remedies as defined by our development agreement are as follows: <br />(a) The City may suspend its performance under this agreement until it receives <br />assurances from the developer, deemed adequate by the City, that the developer will <br />cure its default and continue its performance under this agreement. <br />(b) The City may draw upon any guarantee or security provided to the City pursuant to <br />any of the terms of this agreement according to its terms. <br />(c) The City may take any action, including legal or administrative action, which may <br />appear necessary or desirable to collect any payments due under this agreement, to <br />sue for money damages, or to enforce performance and observance of any obligation, <br />agreement, or covenant of the developer under this agreement. <br />In discussing this matter with Tom Bray of Briggs & Morgan, the City is in the position to forgo <br />any obligations to RAB under the development agreement for the Phase II development property. <br />This would enable us to find another developer for this site. That action would also result in a <br />loss to the developer of costs associated with improvements made to the Phase II property at the <br />time of the Phase I development. <br />Another option is to amend our existing development agreement to provide a new framework by <br />which the developer can satisfy the intent of the original obligations while also ensuring that the <br />City is made whole as a result of these changes. The concept I would propose is as follows: <br />\ \CLCSRVOI \ HOME \KrisP \CORRESP\2000\Biagini.doc <br />Page 60 <br />