Laserfiche WebLink
515 Little Canada Road, Little Canada, MN 55117-1600 <br />(651) 484 -2177 / FAX: (651) 484 -4538 <br />Email: cityhall @ci.little- canada.mn.us <br />MEMORANDUM <br />TO: Mayor Fahey and Members of the City Council <br />FROM: Joel R Hanson, City Administrator <br />DATE: August 18, 2000 <br />RE: RAB Development Agreement Update <br />MAYOR <br />Michael I. Fahey <br />COUNCIL <br />Beverly Scalze <br />Jim LaValle <br />Steve :Mtorelan <br />Bob Pedersen <br />ADMINISTRATOR <br />Joel R. Hanson <br />Our development agreement with Dick Biagini calls for sale of the remaining <br />development property and construction of a second building to occur by July 1s`. As you <br />may know, Mr. Biagini experienced some health concerns these past few months that <br />have limited his ability to work on this project. The tenant who was to be located in this <br />space has also backed away from their commitment. As our development agreement is <br />currently written, an event of default presently exists. <br />Mr. Biagini is working on new tenants for this building. He is also contemplating <br />constructing all office space versus the 50/50 office /warehouse split previously approved. <br />This would have a positive impact on tax increment generated for this project. He has <br />indicated some excellent leads exist that may allow us to work out a satisfactory <br />arrangement to meet our mutual objectives. Furthermore, he is more than willing to close <br />on the land sale. (Our development agreement does not permit it based on current <br />conditions.) <br />To protect the City, I am recommending we issue a Notice of Default Letter as required <br />by our development agreement. Mr. Biagini then has 30 days to correct this default. <br />Within this timeframe, I would propose we continue to work with Mr. Biagini to seek a <br />long -term solution to this issue while still protecting our interests. (This would be <br />consummated by an amendment to our current development agreement.) If a satisfactory <br />arrangement were not arrived at within this period, the City would be allowed to take <br />appropriate remedies as outlined in our development agreement. <br />cc: Dick Biagini <br />Page 144 <br />