04-26-2000 Council Agenda - Laserfiche WebLink

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MAYOR Michael I. Fahey COUNCIL Beverly Scalze Jim LaValle Steve Morelan Bob Pedersen 515 Little Canada Road, Little Canada, MN 55117 -1600 ADMINISTRATOR (651) 484 -2177 / FAX: (651) 484 4538 Joel R. Hanson Email: cityhall @ci.little- canada.mn.us MEMORANDUM TO: Michael Fahey and City Council Members FROM: Joel Hanson, City Administrator DATE: April 21, 2000 RE: North Lakes letter of intent for redevelopment property Attached is a letter of intent received from North Lakes Property, Inc. for a proposed arrangement involving the northeast corner of Rice Street and Little Canada Road. While it is exciting to have interest shown in this property, I feel there are a few concerns in pursuing the arrangement on this basis. The are as follows: • Property would be tied up for 180 days (developer has indicated a willingness to use 60 day increments to allow for its earlier release should his project not be feasible) • Earnest money is refundable at anytime for any reason throughout the arrangement • Developer can determine not to proceed for any reason • At this time, it is impossible to determine whether the developer's concept will meet our redevelopment objectives I briefly discussed these concerns with Mr. Johnson when he presented this letter. He contends that this type of arrangement is necessary in order for him to invest the time and money necessary to see if a project is possible. He pointed out the fact that he will be spending dollars on a concept plan as well as marketing the site. Therefore, to address the concerns I raised as well as those of Mr. Johnson, I would suggest the following: • Developer to deposit $10,000 of earnest money, refundable for initial 60 day period. • North Lake Properties be granted a 60 day time period to put together a concept drawing for presentation to and approval by City. • If the concept plans meets the Council's objectives, then we would enter into another phase of our arrangement whereby Mr. Johnson would begin given control over the property for an a additional period of time with performance benchmarks to ensure the progress is continuing. \\ CLCSRVOI \HOMEVessicaJ \Corressp\2000 \North L page 235