by Tammy Sakry
As requested by Ramsey Housing and Redevelopment Authority (HRA) member Jason Tossey, Landform Professional Services has agreed to amend its COR development manager contract.
The HRA approved the amendment 6-1 that will defer Landform’s prorated portion of its fee until any financing the city gives to a project is paid back. HRA member Jeff Wise voted no.
Under the 2011-2013 contract, which is in place until March 31, 2013, Landform was to be paid at the execution of the contract, land sale closing and when the certificate of occupancy was issued.
The amendment would make it so Landform could only receive half of the money with the second half being paid once the public loan is repaid.
The example given to describe how this would work is Landform would receive $20,000 on a $1 million project with $500,000 public financing.
Instead of paying out the full amount at the execution, closing and certificate of occupancy issuance, Landform would only receive $10,000.
The remaining $10,000 would be held until the loan is repaid.
If loan payments are made over time, the withheld portion would be paid at the same prorated basis.
How Landform was paid was his biggest issue with the contract, said Tossey.
Where public funding is involved, “I want the want the public is made whole before (Landform),” he said.
While it’s a step in the right direction, HRA member Randy Backous does not think the contract amendment goes far enough.
Landform is still getting $15,000 a month in administrative costs and no deals have been closed, Backous said.
HRA member Colin McGlone disagreed with Backous.
Landform has helped the city with the Northstar Commuter Rail station in Ramsey, which became official in November, and with the Veterans Administration Clinic, he said.
The Flaherty and Collins Properties deal for the The Residence apartment complex is about to close, McGlone said.
And Landform has talked to a number of people about The COR in the last year, he said.
Before the HRA approved Landform’s two-year contract this spring, it did its due diligence, said Wise.
Closing deals was only part of the contract, Landform has also been working to fix the various issues left behind by the previous developer, he said.
The Ramsey HRA comprises the seven members of the Ramsey City Council.
Tammy Sakry is at email@example.com