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Item No: 7A Meeting Date: Nov 13, 2007 Type of Business: EDA Administrator Review: ____ City of Mounds View Staff Report To: Mounds View Economic Development Authority From: James Ericson, Community Development Director Item Title/Subject: Consider Authorization of the Premium Stop Redevelopment Area Pre-Development Agreement with Master Development Introduction: On July 9, 2007, Master Development Services, located in Minneapolis, submitted a response to the City’s request for qualifications regarding the Premium Stop Redevelopment area. Master was the only developer to formally submit a response. Master’s response is attached for the EDA’s review. Master’s response was reviewed by the City Council at their August 6 worksession. One of the directions suggested by the Council was to include language in the agreement that would obligate the developer to work with the adjoining property owners (specifically Taiko Sushi Restaurant and the Roberts Sports Bar) for potential acquisition. This was communicated to Master who has been in contact with the owners of both properties. Discussion: Heidi Heller and I have been meeting with Michael Tobin, Senior Development Manager for Master Development, beginning in July and regularly thereafter. Most recently, Economic Development Specialist Heidi Steinmetz met with Michael Tobin at the Twin Cities North Chamber of Commerce offices to discuss progress on the project. Master has experience dealing with very similar redevelopment projects (some of which included vacated gas station sites) and has exhibited an ability to follow through on a variety of development projects. Mr. Tobin has been invited to attend the EDA meeting to answer any questions the Authority may have relating to the project, Master’s experience or the proposed agreement. Master has been actively exploring opportunities for the site and has been in negotiations with the owner of the adjacent Roberts Sports Bar property, all without the benefit of a pre-development agreement. The agreement will provide exclusive negotiating rights to Master for a six month period of time (with an opportunity to extend the agreement by mutual consent.) The agreement does not obligate the City to sell the property to Master nor does the agreement obligate Master to purchase the property—the intent is to simply provide a six month period of exclusive negotiating rights. If master is successful in marketing the site to an appropriate end user, a subsequent purchase and redevelopment agreement would be necessary. Recommendation: Review the Master Development pre-development agreement (drafted in part by the City Attorney) and consider approval of EDA Resolution 07-EDA-237. Respectfully submitted, ________________________ James Ericson Interim City Administrator