Letter of Intent expected July 15Published 11:34am Wednesday, June 26, 2013
City Administrator Mark Sievert expects to have a letter of intent from Historic Kirkbride at the July 15 Fergus Falls City Council meeting.
The city has asked Ray Willey, of Historic Kirkbride, to outline what the group wants in the letter of intent. Then the city will have a chance to respond, Sievert said.
The council approved entering into a letter of intent June 12, to work with Historic Kirkbride and work toward the negotiation of a development agreement for the RTC. Historic Kirkbride’s $41.4 million plan for the RTC includes a hotel, market-rate apartments and restaurants.
RTC adviser Kent Mattson will conduct due diligence over the next several months, asking for the financial information on Willey and the investors in the group.
“When we ask for financial information… it’s nothing more than lenders ask,” Sievert said, at Wednesday’s Finance, Personnel and Development Committee meeting.
At the request of Willey, proper lines of communication were established, so that there is no miscommunication. All communication regarding the redevelopment project will go through Mattson to Willey for the time being.
“We want to make sure also that Ray is getting the right information from the city,” Sievert said.
In addition, Sievert recommended stopping all uses of the RTC, with the exception of the Friends of the Kirkbride tours. They’ve had a lot of requests, but in the interest of planning for this fall to reach a development agreement, city staff would just get too busy if it had to also address building requests, according to Sievert.
The Friends of the Kirkbride have tours booked through September. Sievert has also been in touch with the SummerFest committee. According to Historic Kirkbride’s tentative timeline, some site work would be scheduled for next spring. If that’s the case, it’s uncertain how the RTC could accommodate SummerFest. The city may not own the building by that time either, Sievert said.
Willey will also have the chance to indicate in the letter of intent what kind of security he wants for the building.