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Item No. 8A Meeting Date: May 12, 2008 Type of Business: EDA Administrator Review: _____ City of Mounds View Staff Report To: Mounds View Economic Development Authority From: Heidi Steinmetz, Economic Development Specialist Item Title/Subject: Expiration of Preliminary Development Agreement with Master Development Background Per the attached EDA Resolution 237 dated November 13, 2007, the EDA authorized then Interim EDA Executive Director Jim Ericson to execute a six-month Preliminary Development Agreement of the EDA-owned Premium Stop property with Master Development. The Agreement gave Master Development exclusive negotiating rights to initiate a project for the EDA-owned property. The Agreement also encouraged Master Development to initiate discussions with adjacent property owners in order to assemble a larger project footprint, which would support the highest and best use of the EDA’s property. As Mike Tobin of Master Development reported at the City Council’s redevelopment roundtable discussion at the April 7th Work Session, his staff has worked diligently to initiate a project for the area but market forces and the economy has made it difficult. At the April 14th Regular City Council Meeting, staff informally inquired of whether or not the Council foresaw extending the Preliminary Development Agreement between the EDA and Master Development. At that time, the Council did not foresee extending the Agreement. Issue The Preliminary Development Agreement with Master Development expires on May 14, 2008, which is six months from the date EDA Resolution 237 was executed. As staff mentioned at the City Council’s May 5th Work Session, the expiration of the Agreement means that staff will now become the main “marketer” of the property, rather than Master Development. Update Staff spoke with Mike Tobin of Master Development on May 7th and Mr. Tobin stated that he agrees with the Council/EDA and does not wish to extend the Agreement. He