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Council Memo December 4, 1998 Page 2 about December 5th, so I may be able to provide more specifics at the 12-7-98 work session. 4. Franchise Agreement: The Developers have apparently entered into a franchise agreement with AmericInn, as evidenced by the attached letter. Although we have not yet received a copy of the agreement itself, it is our understanding that it protects the Developers against other Americlnn franchises being granted or issued within a specified geographic area for a specified period of time. However, such protections can lapse if the project fails to proceed at an acceptable pace, and of course, the agreement with Americlnn cannot prevent other hotel chains from encroaching upon the geographic area in question. 5. Development Agreement: At our request, attorney Mary Ippel of Briggs&Morgan drafted a preliminary version of a Development Agreement several months ago. Last Wednesday, I was provided with a letter(dated 11-24-98, attached)from the Developers' attorney, summarizing his comments on(and proposed revisions of)the Agreement. That letter was forwarded to Ms. Ippel for her review, and she and I discussed it on 12-5-98. We will be conveying our response to the Developers' attorney next week, and if a mutually acceptable version of the Agreement can be finalized, it will be put on the Council or EDA agenda for discussion and action at that time. 6. Property Acquisition(s): In accordance with the direction provided by the Council at earlier meetings, Evergreen Land Services has (at the City's request)been communicating with representatives of Rent All regarding the possible acquisition of that site. (Please refer to the attached letter from Evergreen dated 12-1-98.) It seems that no more progress will occur until the owner gets the property appraised himself, which he is apparently now in the process of doing. The Developers are(and have been) responsible for initiating discussions with the owners of the other parcels that would have to be acquired in connection with the project, but at this point their progress in that regard is unknown. It is anticipated that a variety of other(related)topics may come up for discussion at the work session, including the Developers' progress in obtaining construction financing, the thoughts and opinions of the current and newly-elected Council members regarding the types and amounts of financial assistance that the Developers are seeking from the City, and the projected timetable for various phases of the project. If you have questions regarding any subjects that I have not mentioned in this Memo, I encourage you to call me as early as possible on Monday so that I have an opportunity to conduct whatever research may be required prior to the work session. tug 1 ► 1 : 14. 11 ; 1 Fo ussion only. .G(//4V e .1 Carroll (71 •-41 conomic Development Coordinator N:\DATA\GROUPS\ECONDEV\COUNCIL\12-07-98.KPC