Agenda #4d
memorandum
to: Mayor and Town Council
from: W. Calvin Horton, Town Manager
subject: Budget Amendment for Downtown Economic Development Initiative
date: April 24, 2006
The purpose of this budget amendment is to recommend an additional allocation for legal services related to the preparation of a Development Agreement for the Downtown Economic Development Initiative.
On June 15, 2005, the Council authorized negotiations with the Ram Development Company, and on June 27, 2005, the Council authorized execution of an Exclusive Right to Negotiate with the selected developer. During that time, the Town entered into a contract for legal services with an attorney who is experienced in negotiating public-private development agreements, Glen Hardymon of Kennedy Covington Lobdell and Hickman, L.L.P. Funds for legal assistance ($60,000) were included in the Town Budget adopted on June 27, 2005. These funds were used in negotiating the Memorandum of Understanding authorized by the Council on October 24, 2005.
On November 9, 2005, the Council authorized an additional $30,000 for legal services related to drafting and negotiating the Development Agreement.
We estimate that an additional $25,000 will be needed for continued legal services for the Downtown Initiative through June 30, 2006. We would finance the additional work from interest earnings in the General Fund.
RECOMMENDATION
We recommend the Council adopt the attached Ordinance amending the Budget to add $25,000 for legal services for the Downtown Economic Development Initiative.