Agenda Packets - 1990/08/20 - Laserfiche WebLink

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1r MEMORANDUM TO: Mayor and City Council FROM: Clerk-Administrator Paule DATE: July 20, 1990 SUBJECT: MOUNDS VIEW BUSINESS PARK SOUTH CONSTRUCTION MANAGEMENT AGREEMENT Attached please find a letter from Mr. Bill Franke of Everest Development dated March 6, 1990, requesting that the City enter into an agreement with Everest Development compensating that firm for their construction management costs related to the installation of public improvements in Mounds View Business Park South. Also attached please find a letter from City Attorney Barney dated July 13, 1990, finding no objections to the proposed construction management agreement. • As you may recall, the City entered into a similar agreement for the original Mounds View Business Park project. The proposal for the Mounds View Business Park South agreement calls for the City to compensate Everest Development in the amount of $20,000 or 4% of construction costs, whichever is less, plus out-of-pocket expenses . As is the case with the original Business Park agreement. Everest understands that the City has limited tax increment funds available to them and whether the money is provided in the form of land buy-down or construction management, the total amount of funds available will not increase. Your direction in this matter is requested. Should you choose to approve the agreement, Everest previously submitted request for payment of construction management costs based upon the erroneous assumption that an agreement already existed. Staff has reviewed the costs submitted in the amount of $75,958. 11 and finds them to be consistent with the project and the documentation provided. Therefore, Staff would also recommend that should you approved the construction management agreement, $75,958 . 11 be paid to Everest Development as compensation pursuant to the provisions of the construction management agreement. 411 DFP/BAB Attachments