On December 14, 2010, the HRA approved a purchase agreement and development agreement for the Flaherty and Collins - The Residences at The COR project that will be located west of the parking ramp.  One of the contingencies of the development agreement was the requirement for both parties to waive their contingency for the Ramsey Rail Station by January 28, 2011.  Significant progress has been made between late December to date regarding the funding for the project and moving towards a spring 2011 groundbreaking.  City Administrator Ulrich will provide an update to the HRA regarding the status of the funding, the easement with BNSF, and the construction timeline for the station during the meeting.  Following that udpate, the DM team is seeking direction with regard to the HRA's desire to not waive the contingency. 

 

The issue at hand for the HRA is that the opportunity to not waive this contingency and cancel the agreement will expire on January 28, 2011.  If the contingency is waived or no action is take to not waive the contingency and cancel the agreement, the City is then committed to constructing the parking ramp expansion.  The subsequent issue for the City then becomes proceeding with the process to begin the construction of the ramp, understanding that if some contingency were exercised by Flaherty and Collins at a subsequent date, the City may desire to stop the process to begin construction on the ramp.  There are other contingencies that could be exercised by Flaherty and Collins in the upcoming months with regard to their financing and the due diligence period. 

 

The language from the development agreement is below: 

 

 

At the time of the preparation of this case, staff was awaiting the executed documents from Flaherty and Collins.  Staff hopes to have those executed documents in hand prior to Tuesday night's meeting.