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HomeMy WebLinkAbout7C - Special Counsel Fees for The Wilds & Indian Issues STAFF AGENDA REPORT AGENDA NUMBER: PREPARED BY: SUBJECT: DATE: BACKGROUND: 7C FRANK BOYLES CONSIDER APPROVAL OF ALLOCATION OF ADDITIONAL FUNDS FROM CONTINGENCY FOR SPECIAL COUNSEL FEES FOR THE WILDS AND INDIAN ISSUES JUNE 7,1993 The City Council has previously authorized the services of special Counsel Bob Hoffman to assist in obtaining Metropolitan Council approval of the Comprehensive Plan Amendment for the Wilds. Similarly, at the April workshop the Council designated Attorney Jerry Seck to assist the Council and staff in accomplishing City objectives with respect to the Indian community. In both cases, it is necessary for the City Council to allocate additional funding to finance these efforts. DISCUSSION: The Wilds - On October 5, 1992 the City entered into an agreement with Larkin, Hoffman and Daly to act as the City's special counsel to receive approval from the Metropolitan Council on a major Comprehensive Plan Amendment involving the Wilds. The agreement provided that the City would pay up to $41,000 for these services. As a separate arrangement with the developer, we agreed to split the cost at $20,500 a piece. The developer previously paid the City $20,500. To date the City has received invoices from Larkin, Hoffman and Daly exceeding $43,000. Attached is a letter I recently sent to Richard Burtness advising him that the total legal cost associated with shepherding the Comprehensive Plan Amendment through the Metropolitan Council is estimated to be $60,000. In the letter I asked Mr. Burtness for his commitment to continue to pay half of the fees, or $9500 ($20,500 previously paid plus $9500 = $30,000) He has verbally confirmed his willingness to assume this additional financial responsibility. The letter also indicates that the City will not be responsible for defending any litigation which may arise in association with the Wilds. The action before the Council is to increase its commitment by $9500 to $30,000 for legal fees associated with obtaining a Comprehensive Plan Amendment from the Metropolitan Council for the Wilds development. Indian Issues - Earlier this year, the City was approached. -by the Dakota Community with a request to revise the sewer agreement for land lying south of CR 42 and develop a new agreement for land lying 4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLDYER north of CR 42. At the April workshop, the Council directed, that the City enter into an agreement with the Dakota Community which would provide for ongoing reimbursement for fees in lieu of taxes as part of our sewer agreement efforts. I have apprised the Council on our progress with respect to the sewer agreements. In the course of these efforts, we have received bills from Jerry Seck in the amount of $2800. While the Council directed that Mr. Seck act as the City's special counsel in this regard, a source of funding was not formally allocated. ALTERNATIVES: Council has the following alternatives to consider: 1. Authorize the payment of expenditures for services received to date but authorize no further work on the City's behalf. Additional funding needed would be drawn from Contingency. 2. Authorize an increase in the City's commitment to the Wilds in the amount of $9500 and for special counsel on Indian issues an amount not to exceed $10,000. The funding for such services is to be drawn from the Contingency account. RECOMMENDATION: A complete Comprehensive Plan Amendment package has been delivered to the Metropolitan Council and the review process has started. It would be imprudent at this late date to discontinue our efforts toward approval of the Wilds development which could generate as much as three million dollars annually in additional property tax revenues for all affected agencies. In addition to providing orderly Indian community growth, our efforts with the Dakota Community include a reimbursement agreement. We have made a request for an additional $72,000 for expenses the City incurred in 1992 over the $60,000 which has already been paid. Any revenue generated by these efforts would be returned to the contingency fund to offset the expenditures for special counsel in this regard. We hope to conclude an ongoing agreement with the Dakota Community which will provide for automatic payment so that the City does not incur additional expenses from year to year for negotiating fees in lieu of taxes. ACTION REQUIRED: Motion to authorize an expenditure not to exceed $9500 for additional special counsel fees associated with the Wilds. The motion should recognize that the developer is responsible for an additional $9500 for a maximum total cost not to exceed $60,000. A second motion is in order authorizing a payment not to exceed $10,000 for special counsel services associated with Indian issues. Both allocations are to be drawn from the contingency fund.