R2003-39 AUTHORIZING AGREEMENT - Laserfiche WebLink

Home Browse Search

. ` 4 + � . Memorandum#03-22 Apri12,2003 ' Page-2- Blackstone Grou� Compensation: • Bla.ckstone will be compensated for the physical development portion of this project on a cost-plus basis. • The physical development portion of this project will include those activities necessary to design, construct, and manage the entire project, including all legal, professional, and design services. • Blackstone Group's fee for performing all development related services will be equivalent to 10% of the total cost of the construction project; which will be limited to a not to exceed amount of$1.2 million. • The cost-plus fee will not apply to outlots are sold in an unimproved condition. • For retail recruitment and real estate brokerage services the Blackstone Group will be compensated in one of two ways: • If the City approves a sale of one or more outlots to a third-party, Blackstone will earn a sales commission of 6%based on the value of the transaction. • If the City approves the sale of one or more outlots to the Blackstone Group for the purposes of a build-to-suit leaseback arrangement, there will be no fee paid. It is important to note that throughout this project the City retains specific review and approval authority over the various pre-development, develpoment, and marketing activities. Further, the City will retain absolute review and approval authority over any proposed land transaction. Doing so insures that the City of Decatur will ha.ve final authority when selecting users and approving the terms of any transaction. The retail development of the intersection of Mound and US 51 represents an opportunity to begin making capital investments that enhance the City's ability to generate revenue. In order to ensure the ultimate development of the retail center is consistent with the City's overall goal - developing the highest quality retail center and securing the most beneficial tenant mix possible to generate the greatest sales ta�c return on its capital investment - it is necessary to secure the kinds of develpoment related services provided for in this proposed agreement. POTENTIAL OBJECTION: City staff is not aware of any opposition to the attached resolution. INPUT FROM OTHER SOURCES: The agreement with the Blackstone Group is attached. STAFF REFERENCE: If Council members have questions they may contact A.J. Krieger, 424-2727, �krie e�r(a�decaturnet.org .