AGENDA #4d

MEMORANDUM

TO:                  Mayor and Town Council

FROM:            Roger L. Stancil, Town Manager

SUBJECT:      Request for Extension of Negotiating Period with Ram Development Company

DATE:            September 27, 2006

The attached resolution would authorize continuation of negotiations with Ram Development Company (Ram) for the Downtown Economic Development Initiative on Parking Lot 5 and the Wallace Deck site.

BACKGROUND

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. On May 8, 2006, the Council authorized an extension to the Memorandum of Understanding for an additional 90 days until June 30, 2006. On June 26, we provided the Council with a status report.  At that time, the Council extended the negotiating period until October 1, 2006.

STATUS REPORT

Ram Development Company provided revised proposal information in July and August 2006.  The Town Negotiating Team began meeting again in August 2006 to continue negotiations; negotiations are not yet concluded.

NEXT STEPS

We plan to report to the Council on Ram’s revised proposal soon. At that time, the Council may wish to schedule a public forum on the proposal. We recommend the Council be in a position to consider a resolution approving a revised proposal and authorizing a development agreement by its December 4, 2006 meeting.  If authorized, we anticipate that a final development agreement could be completed 45 days after that date.

RECOMMENDATION

We recommend that the Council adopt the attached resolution authorizing an amendment to the Memorandum of Understanding with Ram extending the negotiating time period to December 5, 2006.