AGENDA #4j

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            W. Calvin Horton, Town Manager

SUBJECT:      Extension of Time to Negotiate a Development Agreement with Ram

DATE:            May 8, 2006

The attached resolution would authorize the Town Manager to continue to negotiate a Development Agreement with Ram Development Company (Ram) for the Downtown Economic Development Initiative on Parking Lot 5 and the Wallace Deck site.

On October 24, 2005, the Council approved the execution of a Memorandum of Understanding with Ram and authorized the Town Manager, with the participation of the Council Committee including Council Members Strom, Greene, and Hill, to negotiate a Development Agreement.

The Memorandum of Understanding, dated October 24, 2005, contained an expiration date of March 31, 2006.  Since the execution of the Memorandum of Understanding, Ram and Town representatives have been working on the Development Agreement and other matters related to these projects.  We believe that it is appropriate to continue these negotiations.

RECOMMENDATION

We recommend that the Council adopt the attached resolution authorizing an amendment to the Memorandum of Understanding with Ram extending the time period for 90 days to June 30, 2006.  In the event we are not able to complete this work by the Council’s second meeting in June and bring a recommended Development Agreement to the Council for approval, we will provide a status report.