R2003-39 AUTHORIZING AGREEMENT - Laserfiche WebLink

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• ' . � � Economic & Urban Development Department Memorandum # 03-22 TO: Honorable M r Terry M. Howley and City Council Members FROM: Steve G 'ty Manager A.J. Kriege , sistant City Managef�`� � SUBJECT: US 51 & Mound Development Agreement RECOMMENDATION: City staff recommends approval of the attached develpoment agreement between the City of Decatur and the Blackstone Group for the development of the non-target portion of the US 51 and Mound Road(Mound Center) site. BACKGROUND: City staff has negotiated the attached development agreement the Blackstone Group for the purposes of developing the balance of the retail center. The Blackstone Group's Joe Hurwitz was instrumental in helping the City recruit Target;both to the Decatur market and the Mound and US 51 site. An explanation of the proposed agreement is as follows: Services Provided by the Blackstone Group: I' • Development of the site. `The Bla.ckstone Group along with Target Corp. will develop the site III as per the requirements of the approved project site plan. That development work will include demolition of the Mound Middle School building, including asbestos abatement, preparation , of all construction rela.ted designs, drawings, and contracts, actual construction of public utilities (water and sanitary sewer) necessary to serve the site, and other private utilities necessary to support the operation of the Target store including construction of the access driveway from US 51, construction of storm water detention facilities, and a landscaping and irrigation system. � Ne�otiation of Site Development and Operation and Easement A�reements with Tar eg t Corp. As Council will recall, the Purchase Agreement with Target Corp. requires the City to negotiate and execute two additional agreements related to the construction and ongoing operation of the new retail center. Acting as the City's agent Blackstone Group will negotiate . and execute the Site Development and Operation and Easement Agreements. These agreements are technical in nature and can potentially have far-reaching impacts on the value, marketability, and operation of the center. The Blackstone Crroup has siginificant experience and legal ea�pertise in preparing and reviewing these kinds of agreements. • Marketing and Recruitment. Blackstone Group will immediately begin preparation of marketing materials for use in attracting and recruiting potential tenants/users. Blackstone Group will act as the City's agent in preparing and negotiating development and/or purchase agreements with future users. The City will retain final review and approval authority over any future transactions. • Project Mana eg ment. The Blackstone Group will provide services ranging from legal assistance in the negotiation of agreements with Target Corp. and future users, retail development consulting when identifying and negotiating with specific restaurants/retailers, professional design services, construction management, and real estate brokerage services.