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<br />A./ -\.( <br />( II <br />rl~ River <br /> <br />ITEM 6. <br /> <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />MAYOR & CITY COUNCIL <br /> <br />FROM: <br /> <br />PAT KLAERS, CITY ADMINISTRATOR <br /> <br />DATE: <br /> <br />APRIL 21, 1994 <br /> <br />SUBJECT: ELK PARK CENTER DEVELOPER'S <br />AGREEMENT <br /> <br />e <br /> <br />Attached for your review is the draft Developer's Agreement as prepared by <br />our City Attorney Peter Beck. Peter will be in attendance at this meeting to <br />address any issues or concerns from the City Council. This draft Agreement <br />has been forwarded to the developers for their review. A number of meetings <br />were held with the developers prior to this Agreement being put together <br />and, as a City, we do not anticipate many requests for changes in this <br />Agreement from the developers. The Developer's Agreement covers issues <br />that need to be addressed before a proposal can move forward. These issues <br />include the necessary improvements for the project as outlined in the <br />Feasibility Study, the financing for these improvements, and the security to <br />ensure that the improvements are paid off. Agenda Item #7, the PUD <br />Agreement, along with the plat and site plan reviews, cover other essential <br />elements in the development project. <br /> <br />From a City financial point of view, there are two items that should be <br />brought to the City Council's attention where there is a deviation between <br />the Developer's Agreement and the Feasibility Study. First, on Page 8 of the <br />Developer's Agreement, the percentage of the improvements that is to be paid <br />by the developer is outlined. Item G and H were originally estimated at 50% <br />and are now recommended to the City Council to be at 25% for the developer. <br />As the Council is aware, G and H relate to improvements at the School Street <br />and Jackson Avenue intersection which was previously planned by the City. <br />Based on our cost estimates, the changes in G and H result in the developer <br />paying approximately $1.378 million for off site street improvements versus <br />the original proposal of $1.478 million. <br /> <br />e <br /> <br />The second item relates to the request for the developer to finance a portion <br />of the northeast area water tower. The basis of this original request was <br />founded on the fact that this is the only redevelopment commercial area in <br />the vicinity that requires the water pressure and volume of a larger water <br />tower. The other reason for this request was the need for funds to finance the <br />water tower. Since there is other commercial property in this water district <br /> <br />P.O. Box 490 · 13065 Orono Parkway · Elk River, MN 55330 · (612) 441-7420 · Fax: (612) 441-7425 <br />