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06-27-06 Regular CITY OF RICHFIELD, ',,1INNESOT A TUESDAY, JUNE 27, 2006 ******************************************************************************************************* SPECIAL CITY COUNCIL WORKSESSION RICHFIELD WATER TREATMENT PLANT 6221 PORTLAND AVENUE 5:00 P.M. Call to order Roll call 5:00 p.m. -6:20 p.m. 1. Tour of Water Treatment Plant and discussion regarding status of water plant projects Council Memo No. 95} Adjournment ******************************************************************************************************* REGULAR CITY COUNCIL MEETING COUNCIL CHAMBERS 6700 PORTLAND AVENUE 6:30 P.M. AGENDA INTRODUCTORY PROCEEDINGS Call to order Roll call Open forum (15 minutes maximum) Each speaker is to keep their comment period to three minutes to allow sufficient time for others. Comments are to be an opportunity to address the Council on items not on th agenda. Individuals who wish to address the Council must have registered prior to the meeting. Notes: Pledge of Allegiance Approval of minutes of Special City Council Worksession of May 30, 2006 PRESENTATION 1. Presentation of Padgett Award to Richfield Ice Arena COUNCil DISCUSSION 2. Council discussion . Hats Off To Hometown Hits Notes: AGENDA APPROVAL 3. Council approval of agenda CONSENT CALENDAR 4. Consent Calendar contains several separate items, which are acted upon by the City Council in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further Council action is necessary. However, any Council Member may request that an item be removed from the Consent Calendar and placed on the regular agenda for Council discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of resolution amending Resolution No. 9586 authorizing conditional use permit for restaurant with customer seating at 6417 Lyndale Avenue; Woodlake Plaza Shopping Center S. R No. 127 B. Consideration of approval of resolution declaring costs to be assessed and ordering preparation of assessment ron for 2005 removal of diseased trees from private property and setting public hearing for August 8, 2006 S. R No. 128 C. Consideration of approval of resolutions declaring costs to be assessed and ordering preparation of assessment roll for 2005 Lyndale/HUB/N;collet maintenance, and proposing similar assessment process for 2007 and setting public hearing for August 8,2006 S.R. No. 129 D. Consideration of approva\ of resolutions dec\aring costs to be assessed and ordering preparation of assessment roll for 2005 77th Street maintenance district, and proposing similar assessment process for 2007 and setting public hearing for August 8,2006 S.R No. 130 E. Consideration of approval of community celebration event license and temporary on-sale 3.2 percent malt liquor licenses, with waiver of celebration fee, for Fourth of July Committee for annual events scheduled on June 29 through July 4,2006 S.R No. 131 Notes: 5. Consideration of items, if any, removed from Consent Calendar Notes: PUBLIC HEARINGS 6. Public hearing regarding new pawn and second hand goods dealer license for University Cash Company, LLC dba Hy's Pawn and Jewelry, 6414 Nicollet Avenue Staff Report No. 132 Notes: 7. Public hearing regarding resolution approving installation of ground monument sign four feet from right of way at 7525 Oliver Avenue, Woodlake Lutheran Church Staff Report No. 133 Notes: OTHER BUSINESS 8. Consideration of bid minutes/tabulation and award of contract to Magney Construction, Inc. for replacement of lime sludge presses at water treatment plant in total amount of $1,364,750authorizing modification to transitory ordinance vacating rights-of-way in Cedar Point Commons project area Staff Report No. 134 Notes: PROPOSED ORDINANCE/RESOLUTION 9. Consideration of: First reading of transitory ordinance authorizing sale of real property for right-of way purposes to Minnesota Department of Transportation and sale of excess right- of-way real property and other City-owned real property to Richfield HRA and scheduling public hearing and second reading for July 11, 2006; 66th StreetITH 77 Interchange Project and Cedar Point Project Resolution approving purchase agreement with HRA for sale of land; Cedar Point project Staff Report No. 135 Notes: RESOLUTIONS 10. Consideration of resolution approving modification to City agreement which includes public improvements and special assessment agreement and option and right of first refusal agreement; Cedar Point project Staff Report No. 136 Notes: 11. Consideration of resolution approving amended business subsidy agreement between Richfield HRA and Ryan Companies US, Inc.; Cedar Point project Staff Report No. 137 Notes: 12. Consideration of . Resolution approving business subsidy agreement between HRA and Target Corporation assigning to Target portions thereof original business subsidy agreement for Cedar Point Commons project . Resolution approving business subsidy agreement between HRA and Home Depot Corporation assigning to Home Depot portions thereof original business subsidy agreement for Cedar Point Commons project Staff Report No. 138 Notes: 13. Consideration of resolution establishing just compensation and authorizing purchase of 6600-17th Avenue, 6601-16th Avenue, 1614 East 66th Street and 1620 East 66th Street for new 17th Avenue roundabout Staff Report No. 139 Notes: 14. Consideration of resolution approving maintenance agreement with Ryan Companies US, Inc. for public improvements associated with 66th Street and 17th Avenue intersection project Staff Report No. 140 Notes: 15. Consideration of resolution approving escrow agreement with Ryan Companies US, Inc.; Cedar Point project Staff Report No. 141 Notes: PROPOSED ORDINANCE/RESOLUTIONS 16. Consideration of: . Modifications to transitory ordinance for planned unit development and rezoning of properties located in Cedar Point Commons project . Modifications to resolution for final development plan and conditional use permit for Cedar Point Commons project . Resolution authorizing summary publication of ordinance to Appendix 1 of Richfield Zoning Code which pertains to rezoning of parcels for Cedar Point Commons development project Staff Report No. 142 Notes: PROPOSED ORDINANCE 17. Consideration of authorizing modification to transitory ordinance vacating rights-of- way in Cedar Point Commons project area Staff Report No. 143 Notes: CITY MANAGER'S REPORT 18. City Manager's report . Hennepin County Wellness by Design Award (Council Memo No. 96) Notes: 19. Claims and payrolls Open forum (additional 15 minutes if more time needed after first Open Forum and by majority vote of the City Council) Each speaker is to keep their comment period to three minutes to allow sufficient time for others. Comments are to be an opportunity to address the Council on items not on the agenda. Individuals who wish to address the Council must have registered prior to the meeting. Notes: 20. Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. AGENDA SECTION: AGENDA ITEM # REpORT # CONSENT 4A 127 ..... STAFF REpORT RICHFIELD CITY COUNCIL MEETING JUNE 27, 2006 REpORT PREPARED By: MELISSA POEHLMAN, ZONING ADMINISTRATOR NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: 17] .' 11::1/ ri REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration to amend a Resolution to correct error regarding a Conditional Use Permit at 6417 L ndale Avenue oodlake Plaza Sho in Center. I. RECOMMENDED ACTION: By Motion: Adopt the attached amended Resolution authorizing a Conditional Use Permit for a restaurant with customer seating at 6417 L ndale Avenue Woodlake Plaza Sho in Center. I II. BACKGROUND I On February 8, 2005 the Council approved a Conditional Use Permit (CUP) for a restaurant with seating at 6417 Lyndale Avenue. The applicant has since recorded this Resolution with Hennepin County, as is required by State and local statutes. Recently it came to staff's attention that an error exists in the Resolution granting approval of the above-mentioned CUP. As CUPs run with the land, rather than an individual business, it is important that the Resolution recorded both with Hennepin County and the City is correct. The first stipulation of the current Resolution states that "a Conditional Use Permit is issued for a two-family dwelling..." The remainder of the Resolution correctly refers 062706 - Resolution correction 6417 Lyndale Ave S to the issuance of a CUP for a restaurant with customer seating. The amended Resolution corrects this error. I III. BASIS OF RECOMMENDATION I I A. POLICY I . CUPs run with the land. It is important to avoid any potential confusion that could arise in the future due to this error. . The property is guided for community commercial use in the Comprehensive Plan, not residential. I B. CRITICAL ISSUES I . The proprietress of the restaurant currently operating at this location has been notified of the error and will be sent a new copy of the amended Resolution. I C. FINANCIAL I . Neither the property owner, nor the proprietress was charged a fee for this correction. I D. LEGAL . N/A I IV. ALTERNATIVE RECOMMENDATION(S) I . Do not approve the amended Resolution. Confusion could arise at a later date, as the Resolution currently states that a Conditional Use Permit for a two-family dwelling has been issued for the premise. I V. ATTACHMENTS . Resolution (amended) . Resolution 9586 I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . N/A iA-1 RESOLUTION NO. RESOLUTION AUTHORIZING A CONDITIONAL USE PERMIT FOR RESTAURANT WITH CUSTOMER SEATING AT 6417 L YNDALE AVENUE SOUTH WHEREAS, an application has been filed with the City of Richfield which request approval of a Conditional Use Permit to allow a restaurant with customer seating at 6417 Lyndale Avenue South, legally described as: LOTS 12 13 14 15 16 17 AND THE NORTHWESTERLY 25 FT OF LOT 18, BLOCK 6, "LYNDALE OAKS", INCLUDING THE WESTERLY HALF OF VACATED ALLEY ADJOINING SAID LOTS 12, 15, 16, 17 AND THE NORTHWESTERLY 25 FEET OF LOT 18; IN TOWNSHIP 116, RANGE 24, SECTION 28, NORTHEAST QUARTER WHEREAS, the Planning Commission of the City of Richfield has recommended approval of this requested Conditional Use Permit at 6417 Lyndale Avenue South at its January 10, 2005 meeting, and WHEREAS, this requested Conditional Use Permit at 6417 Lyndale Avenue South meets those requirements necessary for issuing a Conditional Use Permit as specified in Richfield's Zoning Code, Section 546.05, subd.6, and WHEREAS, the City has fully considered the request for approval of the Conditional Use Permit; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota, as follows: 1. A Conditional Use Permit is issued for a restaurant with customer seating, as described in City Staff Report No. 35, dated February 8, 2005, on the Subject Property legally described above. 2. This Conditional Use Permit at 6417 Lyndale Avenue South is subject to the following conditions in Section 526.27 Subdivisions 7 of the City's Zoning Ordinance. 3. The Conditional Use Permit shall remain in effect for so long as conditions regulating it are observed, and the Conditional Use Permit shall expire if normal operation of the use has been discontinued for 12 or more months, as required by the Zoning Ordinance, Section 546.05, Subd. 9. 4. This Resolution amends and supercedes Resolution No. 9586, adopted by the City Council on February 8, 2005. Adopted by the City Council of the City of Richfield, Minnesota this 27th day of June, 2006. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk 062706 - Resolution correction 6417 Lyndale Ave S lfA-:J- RESOLUTION NO. 9586 RESOLUTION AUTHORIZING A CONDITIONAL USE PERMIT FOR RESTAURANT WITH CUSTOMER SEATING AT 6417 L YNDALE AVENUE SOUTH WHEREAS, an application has been filed with the City of Richfield which request approval of a Conditional Use Permit to allow a restaurant with customer seating at 6417 Lyndale Avenue South, legally described as: LOTS 12 13 14 15 16 17 AND THE NORTHWESTERLY 25 FT OF LOT 18, BLOCK 6, "LYNDALE OAKS", INCLUDING THE WESTERLY HALF OF VACATED ALLEY ADJOINING SAID LOTS 12, 15, 16, 17 AND THE NORTHWESTERLY 25 FEET OF LOT 18; IN TOWNSHIP 116,RANGE 24, SECTION 28, NORTHEAST QUARTER WHEREAS, the Planning Commission of the City of Richfield has recommended approval of this requested Conditional Use Permit at 6417 Lyndale Avenue South at its January 10, 2005 meeting, and WHEREAS, this requested Conditional Use Permit at 6417 Lyndale Avenue South meets those requirements necessary for issuing a Conditional Use Permit as specified in Richfield's Zoning Code, section 546.05, subd.6, and WHEREAS, the City has fully considered the request for approval of the Conditional Use Permit; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota, as follows: 5. A Conditional Use Permit is issued for a two-family dwelling, as described in City . Staff Report No. 35, on the Subject Property legally described above. 6. This conditional use permit at 6417 Lyndale Avenue South is subject to the following conditions in Section 526.27 Subdivisions 7 of the City's Zoning Ordinance. 7. The conditional use permit shall remain in effect for so long as conditions regulating it are observed, and the Conditional Use Permit shall expire if normal operation of the use has been discontinued for 12 or more months, as required by the Zoning Ordinance, Section 546.05, Subd. 9. Adopted by the City Council of the City of Richfield, Minnesota this 8th day of February, 2005. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: AGENDA ITEM # REpORT # CONSENT 4B 128 ...... STAFF REpORT RICHFIELD CITY COUNCIL MEETING JUNE 27, 2006 REpORT PREPARED By: RANDy HUGHES, OPERATIONS SUPERINTENDENT NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: ~ rJ REVIEWED By CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of the attached resolution declaring costs to be assessed for removal of diseased trees from rivate ro ert for work ordered in 2005. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolution declaring costs to be assessed and ordering the preparation of the proposed assessment roll for the removal of diseased trees from private property for work ordered in 2005 and setting the public hearing date for August 8, 2006. I II. BACKGROUND I Property owners of diseased trees have four options available: 1. Remove the tree themselves. 2. Hire and pay their own contractor. 3. Hire the City's contractor and pay for the removal within 30 days. 4. Use the City's contractor and request that the cost of the tree removal be assessed against their property tax. In the period from January 1,2005 through December 31,2005, twenty-three (23) property owners chose the fourth option. 062706treeassess I III. BASIS OF RECOMMENDATION I I A. POLICY I . The work has been done with prior approval from the affected residents. I B. CRITICAL ISSUES I . Minnesota State Statute requires the County to be notified of all special assessments. I C. FINANCIAL I . The costs to be assessed for the removal of Dutch Elm diseased trees on private property for work ordered during the period January 1,2005 through December 31 ,2005 have been determined to be $35,678.75. . The original source of funding to have the work done is through the City's Permanent Improvement Revolving Fund. The property owner may prepay the special assessment, but after the assessment is certified on or before October 10, 2006, for the 2007taxes, the interest rate is six percent with the payment spread over five years. I D. LEGAL I . No legal issues are apparent at this time. The City Attorney will be in attendance at the Council meeting should a legal question arise. I IV. ALTERNATIVE RECOMMENDATION(S) I . Council may revise the special assessment roll as deemed necessary following the public hearing. I V. ATTACHMENTS . Resolution I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . None 48-1 RESOLUTION NO. RESOLUTION DECLARING COSTS TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR REMOVAL OF DISEASED TREES FROM PRIVATE PROPERTY FOR THE PERIOD OF JANUARY 1, 2005 TO DECEMBER 31, 2005 WHEREAS, costs have been determined for the removal of diseased trees from private properties in the City of Richfield and the expenses incurred or to be incurred for such work ordered during the period of January 1, 2005 through December 31,2005 amount to $35,678.75. Property Address 6430 Pillsbury Avenue South 6344 James Avenue South 6216 15th Avenue South 7410 Cedar Avenue South 6640 5th Avenue South 6812 Irving Avenue South 6848 Oliver Avenue South 7015 Clinton Avenue South 200 Pleasant Lane 7300 Logan Avenue South 6542 Bloomington Avenue South 6721 Chicago Avenue South 918 W 73rd Street 500 E 67th Street 7219 James Avenue South 7601 Grand Avenue South 7309 Harriet Avenue South 6628 5th Avenue South 6700 Pleasant Avenue South 6526 Bloomington Avenue South 7408 Vincent Avenue South 6644 Portland Avenue 6512 Bloomington Avenue South Property Identification Number 27 -02824-24-0003 28-02824-21-0011 26-02824-12-0059 35-02824-41-0011 27-02824-41-0032 28-02824-34-0012 28-02824-33-0044 34-02824-11-0034 34-02824-24-0054 33-02824-23-0083 26-02824-13-0103 26-02824-31-0070 33-02824-14-0106 27-02824-41-0013 33-02824-24-0003 34-02824-33-0017 34-02824-23-0137 27 -02824-41-0130 27-02824-32-0091 26-02824-13-0099 32-02824-42-0050 27 -02824-41-0012 26-02824-13-0098 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota: 1. The total cost to be assessed against benefited property owners is declared to be $35,678.75. 2. The City Clerk shall forthwith calculate the proper amount to be specially assessed for such work against each benefited property, and shall file a copy of such proposed assessment in his office for public inspection. 3. The Clerk shall, upon the completion of such proposed assessment, notify the City Council thereof. 4-8-;2. 4. A hearing shall be held on the 8th day of August, 2006 in the City Hall Council Chambers at 6:30 p.m., or as soon as hereafter as it may be reached on the agenda, to pass upon such proposed assessment and at such time and place all persons owning property affected by said diseased tree removal assessment will be given an opportunity to be heard in reference to such assessment. 5. The City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment at least two weeks prior to the hearing and shall state in the notice the total cost of the diseased tree removal. The City Clerk shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. Adopted by the City Council of the City of Richfield this 27th day of June, 2006. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk . ....... RICHFIELD AGENDA SECTION: AGENDA ITEM # REpORT # STAFF REpORT CITY COUNCIL MEETING JUNE 27,2006 ~ ri REpORT PREPARED By: COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: . RANDY HUGHES, OPERATIONS SUPERINTENDENT NAME, TITLE CONSENT 4C 129 ITEM FOR COUNCIL CONSIDERATION: Consideration of the attached resolutions pertaining to the annual Lyndale/HUB/Nicollet (LHN) maintenance assessment rocess. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolution declaring costs to be assessed and ordering preparation of the proposed assessment roll for 2005 Lyndale/HUB/Nicollet (LHN) Maintenance and adopt the attached resolution proposing a similar assessment process to be implemented for 2007 and schedule the public hearing for August 8, 2006 for both. I II. BACKGROUND I The Lyndale/HUB/Nicollet (LHN) maintenance assessment was established to recover extraordinary maintenance expenses in the LHN (66th StreetlLyndale/Nicollet) area in 1981. The extraordinary services include irrigation, weeding and mowing of landscaped areas. The LHN Redevelopment Area is approximately bounded by 64th Street, First Avenue, 67th Street and Emerson , Avenue. City staff has determined actual costs of current services to be assessed for the 2005 maintenance of this area and estimated costs for the 2007 maintenance. 06281hn0406 I III. BASIS OF RECOMMENDATION I I A. POLICY I . Section 825 of the City Code indicates "current services" mean one or more of the following: (a) snow, ice, or rubbish removal from sidewalks; (b) weed elimination from streets or private property; (c) removal or elimination of public health or safety hazards from private property, excluding and structure included under the provisions of Minnesota Statues, sections 463.15 to 463.26; (d) installation or repair of water service lines; (e) street sprinkling, sweeping, or other dust treatment of streets; (f) the trimming and care of trees and the removal of unsound trees from any street; (g) the treatment and removal of insect-infested or diseased trees on private property; (h) the repair of sidewalks and alleys; (i) the operation of a street lighting system; U) the maintenance of landscaped areas, decorative parks and other public amenities on or adjacent to street right-of-way; and (k) snow removal and other maintenance of streets in commercial redevelopment areas. . Council ordered the work, and the work is done for 2005. . Council needs to orderthe work for 2007. I B. CRITICAL ISSUES I . On or before September 1 of each year, the City shall list the total unpaid charges for current services against each separate lot or parcel to which they are attributable under section 825 of the City Code. I C. FINANCIAL I . Estimated and actual costs for the LHN maintenance services from 1989-2007 were/are: Year Estimated Actual 1989 $43,151.19 1990 $44,560 $43,539.10 1991 $44,153 $43,825.22 1992 $46,484 $47,005.26 1993 $45,050 $34,866.01 1994 $45,115 $44,635.70 1995 $45,516 $36,105.50 1996 $46,080 $48,118.39 1997 $47,730 $31,208.46 1998 $49,165 $39,127.73 1999 $50,640 $47,470.80 2000 $45,000 $31,273.61 2001 $50,000 2002 $50,000 2003 $52,000 2004 $50,000 2005 $50,000 2006 $50,000 2007 $50,000 Fluctuations in expenditures for maintenance of LHN are caused by a number of factors. Weather determines water usage and irrigation costs; street light knockdowns are never foreseeable and very expensive; and the need to paint streetlights and repair concrete varies from year to year. $52,556.06 $35,136.62 $37,785.67 $44,031.39 $45,385.31 I D. LEGAL I . Section 825, Subd. 2 states that "the City Clerk, under the Council's direction, shall publish notice that the Council will meet to consider the undertaking of current services and levying of special assessments to pay costs thereof. " I IV. ALTERNATIVE RECOMMENDATION(S) I . Council may make any changes to the assessment roll as deemed necessary after the public hearing. I V. ATTACHMENTS I . Resolution declaring costs to be assessed and ordering preparation of the proposed assessment roll for 2005 LHN Maintenance. . Resolution proposing to specially assess the costs of current services for 2007. I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . None. . 4C;1 RESOLUTION NO. RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR L YNDALE/HUB/NICOLLET (LHN) MAINTENANCE FOR THE PERIOD JANUARY 1, 2005 THROUGH DECEMBER 31, 2005 WHEREAS, costs have been determined for the maintenance of the Lyndale/Hub/Nicollet (LHN) Redevelopment Area which is approximately bounded by 64th Street, First Avenue, 67th Street and Emerson Avenue in the City of Richfield and the expenses incurred or to be incurred for such maintenance amount to $45,385.31 for the period of January 1, 2005 through December 31 , 2005. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota: 1. The portion of the cost to be assessed against benefited property owners is declared to be $45,385.31. 2. The City Clerk shall forthwith calculate the proper amount to be specially assessed for such maintenance against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and shall file a copy of such proposed assessment in his office for public inspection. 3. The City Clerk shall, upon the completion of such proposed assessment, notify the City Council thereof. 4. A hearing shall be held on the 8th day of August, 2006, in the Council Chambers of the City Hall at 6:30 p.m. or as soon thereafter as the matter can be reached on the agenda to pass upon such proposed assessment and at such time and place all persons owning property affected by said maintenance assessment will be given an opportunity to be heard in reference to such assessment. 5. The City Clerk is hereby directed to cause a notice of the hearing on the proposed assessmentto be published once in the official newspaper at least two weeks prior to the hearing, and he shall state in the notice the total cost of the maintenance. The City Clerk shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing Adopted by the City Council of the City of Richfield, Minnesota this 27th day of June, 2006. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk Lte/a RESOLUTION NO. RESOLUTION PROPOSING TO SPECIALLY ASSESS FOR THE COSTS OF CURRENT SERVICES PROVIDED WITHIN THE L YNDALE/HUB/NICOLLET (LHN) PROJECT AREA FOR THE PERIOD JANUARY 1, 2007 THROUGH DECEMBER 31,2007. BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. There is hereby established a special assessment district, the boundaries of which are conterminous with the Lyndale/Hub/Nicollet (LHN) Redevelopment Project Area, for the purposes of assessing for current services provided by the City. 2. The following current services of the City are hereby proposed to be undertaken by the City in the district, with the costs of such services to be specially assessed against benefited property within the district: . Snow, ice or rubbish removal; . Weed elimination; . Elimination or removal of public health or safety hazards from private property, excluding any structure included under the provisions of Minnesota Statutes Section 463.15 to 463.26; . Installation or repair of water service lines; . Street sprinkling or other dust treatment of streets; . Trimming and care of trees and the removal of unsound trees; . Repair of sidewalks, crosswalks, and other pedestrian walkways; . Operation of the street lighting system; . Maintenance of landscaped areas and other public amenities on or adjacent to street right-of-way; . Maintenance of Civic Plaza; . Snow removal and other maintenance of streets; . Painting and repair of wood furniture; . General maintenance, including repairs and replacement. 3. The area proposed to be specially assessed for such current services consists of every assessable lot and parcel of land within the district. It is proposed that special assessments on commercial property be made on the basis of the area with each square foot of assessable commercial property within the district being assessed an equal amount for maintenance of common are. Exempt from the special assessment levy shall be all single family, two-family, multiple family residential property within the LHN redevelopment district. Special maintenance of individual commercial properties shall be assessed directly for costs incurred in performing said maintenance to said property. 4. The City Clerk is authorized and directed to give public notice of a hearing by this Council at which the Council will consider the undertaking of such current services and the levying of special assessments to bear the costs thereof. The City Clerk shall also give mailed and published notice of such hearing as required by law. Such hearing shall be held on Tuesday, AugustS, 2006, commencing at 6:30 p.m. or as soon thereafter as the matter can be reached on the agenda. 4 c,- 3 5. It is hereby proposed that the project consist of the costs of the aforementioned services for the period of January 1,2007 through December 31,2007. The estimated cost of providing all the aforementioned current services during that period is $50,000. Adopted by the City Council of the City of Richfield, Minnesota this 27th day of June, 2006. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: AGENDA ITEM # REpORT # CONSENT 4D 130 ....... STAFF REpORT RICHFIELD CITY COUNCIL MEETING JUNE 27, 2006 REpORT PREPARED By: RANDy HUGHES, OPERATIONS SUPERINTENDENT NAME, TITLE ~~.v,". COUNCIL PRESENTER: REVIEWED BY CITY MANAGER: ~.. ~ ri ,,"t::.:1 ".~, DEPARTMENT DIRECTOR REVIEW: .'. ,;'j,:',-, " ;'< ITEM FOR COUNCIL CONSIDERATION: Consideration of the attached resolutions pertaining to the annual 77th Street maintenance district assessment process. 1. RECOMMENDED ACTION: By Motion: Adopt the attached resolution proposing to assess commercial properties in the 77th Street assessment district for costs incurred to maintain the area for 2005 and adopt the attached resolution proposing a similar assessment process to be implemented for 2007 and setting a public hearing date for August 8, 2006 for both. I II. BACKGROUND I Since the 1988 construction of the short section of 77th Street around the Hampton Inn, the City has been performing special, high-quality maintenance along 77th Street. The special maintenance services include irrigation, weeding and mowing of the landscaping on both sides of the 77th Street wall. The maintenance functions, known as current services, are funded through the maintenance assessment on the 77th Street businesses. City staff has determined costs to be assessed for the maintenance of the 77th Street redevelopment area between 1- 35W and Cedar Avenue. 062877th0305assess I III. BASIS OF RECOMMENDATION I I A. POLICY I . Section 825 of the City Code indicates "current services" mean one or more of the following: (a) snow, ice, or rubbish removal from sidewalks; (b) weed elimination from streets or private property; (c) removal or elimination of public health or safety hazards from private property, excluding and structure included under the provisions of Minnesota Statues, sections 463.15 to 463.26; (d) installation or repair of water service lines; (e) street sprinkling, sweeping, or other dust treatment of streets; (f) the trimming and care of trees and the removal of unsound trees from any street; (g) the treatment and removal of insect~infested or diseaseqJrees on private property; (h) the repair of sidewalks and alleys; (i) . the operation of a street lighting system; U) the maintenance of landscaped areas, decorative parks and other public amenities on or adjacent to street right~of~way; and (k) snow removal and other maintenance of streets in commercial redevelopment areas. . Council ordered the work, and the work is done. . ResolutionNo. 7405, adopted in 1988, established a policy for assessing the costs. . Commercial property owners will be assessed on a per~square-foot basis. However, all single family and multi~family residential properties, plus the two churches in the area, would be exempt from the special assessment levy. I B. CRITICAL ISSUES I . On or before September 1 of each year, the City shall list the total unpaid charges for current services against each separate lot or parcel to which they are attributable under section 825 of the City Code. I C. FINANCIAL I . Estimated and actual costs for the 77th Street maintenance services from 1995 ~ 2006 are: Year Estimate Actual 1995 $18,000 $10,569.06 1996 $33,795 $36,850.31 1997 $58,973 $44,729.90 1998 $74,765 $54,629.54 1999 $80,000 $76,674.70 2000 $80,000 $70,594.20 2001 $85,000 $78,884.49 2002 2003 2004 2005 2006 2007 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $75,490.39 $59,831.07 $63,842.79 $64,841.54 I D. LEGAL I . No legal issues are apparent at this time. The City Attorney will be in attendance at the Council meeting should a legal question arise. . Section 825, Subd. 2 states that "the City Clerk, under the Council's direction, shall publish notice that the Council will meet to consider the undertaking of current services and levying of special assessments to pay costs thereof." I IV. ALTERNATIVE RECOMMENDATION(S) I . Council may make any changes to the assessment roll as deemed necessary after the public hearing. I V. ATTACHMENTS I . Resolution declaring costs to be assessed and ordering preparation of the proposed assessment roll for 2005 77th Street Maintenance. . Resolution proposing to specially assess for current services for 2007. I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . None. L{ fJ-1 RESOLUTION NO. RESOLUTION DECLARING COST TO BE ASSESSED AND ORDERING PREPARATION OF PROPOSED ASSESSMENT FOR 77TH STREET MAINTENANCE FOR THE PERIOD JANUARY 1, 2005 THROUGH DECEMBER 31 , 2005 WHEREAS, costs have been determined for the maintenance of the 77th Street Redevelopment Area the boundaries of which are approximately east of 1-35W and west of Cedar Avenue in the City of Richfield and the expenses incurred or to be incurred for such maintenance amount to $64,841.54 for the period of January 1, 2005 through December 31,2005. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota: 1. The portion of the cost to be assessed against benefited property owners is declared to be $64,841.54. 2. The City Clerk shall forthwith calculate the proper amount to be specially assessed for such maintenance against every assessable lot, piece or parcel of land within the district affected, without regard to cash valuation, as provided by law, and shall file a copy of such proposed assessment in his office for public inspection. 3. The City Clerk shall, upon the completion of such proposed assessment, notify the City Council thereof. 4. A hearing shall be held on the 8th day of August, 2006, in the Council Chambers of the City Hall at 6:30 p.m. or as soon thereafter as the matter can be reached on the agenda to pass upon such proposed assessment and at such time and place all persons owning property affected by said maintenance assessment will be given an opportunity to be heard in reference to such assessment. 5. The City Clerk is hereby directed to cause a notice of the hearing on the proposed assessment to be published once in the official newspaper at least two weeks prior to the hearing, and shall state in the notice the total cost of the maintenance. The City Clerk shall also cause mailed notice to be given to the owner of each parcel described in the assessment roll not less than two weeks prior to the hearing. Adopted by the City Council of the City of Richfield, Minnesota this 27th day June, 2006. Martin J. Kirscli, Mayor ATTEST: Nancy Gibbs, City Clerk 40- ;,L RESOLUTION NO. RESOLUTION PROPOSING TO SPECIALLY ASSESS FOR THE COSTS OF CURRENT SERVICES PROVIDED WITHIN THE 77TH STREET PROJECT AREA FOR THE PERIOD JANUARY 1, 2007 THROUGH DECEMBER 31, 2007 NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: , 1. There is hereby established a special assessment district, the boundaries of which are east of 1-35W and west of Cedar Avenue, for the purposes of assessing for current services provided by the City. 2. The following current services of the City are hereby proposed to be undertaken by the City in the District with the cost of such services to be specially assessed against benefited property within the District; . The trimming and care of trees and shrubs and the removal of any unsound trees from any street; . The repair of sidewalks; . The maintenance of landscaped areas and other public amenities on or adjacent to street rights-of-way; . Trash and litter removal. 3. The area proposed to be specially assessed for such current services consists of each and every commercial lot and parcel of land within the District. It is proposed that the special assessments on the commercial property be made on the basis of area. 4. The City Clerk is hereby authorized and directed to publish notice of a hearing by this Council at which the Council will consider the undertaking of such current services and the levying of special assessments to bear the costs thereof. Such notice shall be published in the official newspaper at least once, at least two weeks prior to the date of hearing. The City Clerk shall also give mailed notice of such hearing as required by law. Such hearing shall be held Tuesday, August 8, 2006, commencing at 6:30 p.m. or as soon thereafter as the matter can be reached on the agenda. 5. It is hereby proposed that the project consist of the aforementioned services for the period from January 1,2007 through December 31,2007. The estimated cost of providing all of the aforementioned services during that period is $80,000. Passed by the City Council of the City of Richfield, Minnesota this 27th day of June, 2006. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: AGENDA ITEM # REpORT # CONSENT 4E 131 ........ STAFF REpORT RICHFIELD CITY COUNCIL MEETING JUNE 27,2006 REpORT PREPARED By: BETSY OSBORN, ADMINISTRATIVE SUPPORT SERVICES MANAGER NAME, TITLE REpORT PRESENTER: NAME, TITLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of an annual request for a community celebration event license and a temporary on-sale 3.2 percent malt liquor license, with a request for a fee waiver, for the Fourth of July Committee for events scheduled to take place at Veterans Memorial Park, June 29 through Jul 4, 2006. I. RECOMMENDED ACTION: By Motion: . Approve a community celebration event license and a temporary on-sale 3.2 percent malt liquor license, for the Fourth of July Committee for the annual events scheduled to take place June 29 through July 4, 2006 at Veterans Memorial Park. . Waive the associated $5,000 celebration fee. I II. BACKGROUND I Each year the Fourth of July Committee makes application for a community celebration event license and requests that the community celebration fee of $5,000 be waived for the activities that take place throughout the City for this celebration. This year's celebration is scheduled to take place June 29 through July 4, 2006. 0627 Fourth of July Licenses As in the past six years, they have also included a request for a temporary on-sale 3.2 percent malt liquor license which would allow them to serve beer and wine coolers at Veterans Memorial Park during the July 3 activities. A copy of the liquor liability insurance has been provided. A detailed activity plan of the days' events is currently on file. A copy is also attached. The food concessions will be staffed by members of various organizations, most of which have been with the committee since the celebration began. The committee has contacted food sanitarians from the City of Bloomington to ensure that proper food handling practices are followed. They will work with Bloomington sanitarians and follow their recommendations for safe and wholesome food handling. In addition, each individual concessionaire has been approved by Doug Dyer of the Bloomington Health Department. All fees for each professional concession have been received. I III. BASIS OF RECOMMENDATION I I A. POLICY I . The applicant has complied with all of the provisions of the City application process and meets the requirements for fee waiver. I B. CRITICAL ISSUES I . Public Safety Police Officers have been hired by the Fourth of July Committee to patrol the area for this event. . There have been no alcohol-related incidents in the past for this event. I C. FINANCIAL . N/A I D. LEGAL . N/A I IV. ALTERNATIVE RECOMMENDATION(S) I . Deny the request of a community celebration event license and a temporary on-sale 3.2 percent malt liquor license. This would result in the applicant not being able to conduct activities, especially those concerning food preparation and temporary on-sale 3.2 percent malt liquor sales on June 29 through July 4,2006. I V. ATTACHMENTS . Copy of the schedule of events. I VI. PRINCIPAL PARTIES EXPECTED AT MEETING I . Tom Rublein, President of the Fourth of July Committee, has been notified of the date for Council consideration of this request. Attachment to 0627 Fourth of July Licenses ::.:: 0:: <( . o.w ;:{~ -0 0::\9 ~lS w_ ::E:J: UlU zcXS ~t, W\.O IiJ > r.i.i Q ::;) .... U Z ... U) w E 8 II( Ill:: w :c S :iUl o:ct]u.. 00-' 00::0 .. <( \9 ~\9w 1Wo:: o::::::l :i::::l~ . 1-_ <(ZZ oW- 0>::E: "0 ::1<( .W ~\9Ul o.~li! ow- 2iGi~ .....lOO 10V; . Z Ul ~<(~ o.oz 000 '?ou .....u.. ~ ~ t;~, r.t:!) 11;~m t,~w'~,''',','., ~'~ ~- L/ [-J U ~ Ul' >-S:l loZ >-J: -~"::'(-~ . ~ ~ ~~ -~ ::E:UlO ~. 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Z ..... - ::E: t:i ~I o w l:; ~ ~ :> .z 9 ::E:::::l ::E: ~o:o u-,!!:!gz -<(>"a3Ul \9;::li!0'I w ~zo.l::E:O 0:: . 0:: - <(<(~~<(o:: l:;UWo.o Ul zo~ w Ulo Z .. w Z Ll'lS:l - 0:: ::E: a. w z o .,..." 0lJ \9 Z ~ w w ~ w ::::l Z ::.::W c:<l ~~ lOtii:io.liJ ~~O:~::l \9zg::::lo oo..ffiu wULl'l\9Z 5 ~cXS I 7:, Ul I' ~ o -' o z - ~ w U w Z ::::l o Z u ::.::w ~ ~~ :E~:io.liJ ~~O:~::l Iwgi'5o UlJ: ..UlU wl-l'\9Z 5 ~cXS I- F cXS R Ul ::.:: u 5; t:i ~I ~ ::E: 9 0: ::E: 0 U-''? G~~ <(-I ::E:~ . ~lS~ o <( Ul 0 W 0 z :-< z ..... :E ~ 0:: W ~~V; 0:S:l:5 OUlW 0::::l0 .o::E:Ul 10Ul oz~ ot-'w .. !;;: -' '<:!'"...J~ 0:: o U "0 :,m ,w "Z ,,!:) .'" t~ :<l( ,0 ~ IL. t:i ~I ~ o ::E: - 0: ::E: 0 u-'O G~:-< <(_..... ::E:~ I. ~lS~ o a. Ul 0 ~ 0 z ..... :E ~ w \9z ffi w :5 ::::l ~ ~::.::ct] o ~o::~ u . w <( W::E:lOo.liJ 00:-,\9-, Zo-'~-' OO!;:loO \9..:>UlU <(M-'\9Z ~ ~::::lcXS cXS 0<( w U 7:, ::.:: w I' OJ ~ lo '-" AGENDA SECTION: PlIBLIC HEARING AGENDA ITEM # 6 REpORT # 132 ....... STAFF REPORT RICHFIELD CITY COUNCIL MEETING JUNE 27, 2006 REpORT PREPARED By: BETSY OSBORN, ADMINISTRATIVE SUPPORT SERVICE MANAGER NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEw: ~ REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Public Hearing for consideration of a hew pawn and second hand goods dealer license for Universit Cash Com an LLC. db/a H 's Pawn and Jewel ,6414 NicolletAvenue South. I. RECOMMENDED ACTION: Conduct Public Hearing and By Motion: Approve a new Pawn and Second Hand Goods Dealer license for University Cash Company LLC d/b/a/ H 's Pawn and Jewel ,6414 Nicollet Avenue South. I II. BACKGROUND I On March 9, 2006, the City received a new application and other required documents for pawnbroker and secondhand goods dealer licenses for University Cash Company LLC d/b/a Hy's Pawn and Jewelry, 6414 Nicollet Avenue South. The applicant has paid the required license fees. The Public Safety background investigation has been completed and reveals the following: Andy Jason Strauss is the sole owner of the business and acts as Chief Executive Officer. Mr. Strauss does not have any known criminal record. 0627 PH Hy's Pawn & Jewelry New Licenses Andy Strauss has held a 10% interest in the business through their 2004 application; however, the 2005-06 license period did not reflect him as having any ownership. Mr. Strauss is in the process of purchasing Hy's Pawn and Jewelry from his uncle, Michael Strauss, and Jory Herman and Daniel Berdass, who have been the previous owners. A $5,000 bond from Western Surety Company has been submitted. Environmental Health staff did not receive any complaints regarding this property in the past year. The owner of the business, Andy Strauss, agrees to act in a cooperative manner with the Public Safety Department on the recovery of stolen articles. The notice of public hearing was published in the Sun Current newspaper on June 7,2006. I III. BASIS OF RECOMMENDATION I I A. POLICY I . The applicant has complied with all of the provisions of the City codes pertaining to pawnbroker and secondhand goods dealer licensing. . Based on the information supplied by the applicant and the investigation conducted, there appears to be no reason to deny the issuance of the licenses requested. I B. CroTICAL ISSUES . N/A I C. FINANCIAL . N/A I D. LEGAL . N/A I IV. ALTERNATIVE RECOMMENDATION(S) I . The Council could decide not to approve the license request for new pawnbroker and secondhand good dealer licenses for University Cash Company LLC d/b/a Hy's Pawn and Jewelry, and that would mean that they would be unable to operate in the City of Richfield. I V. ATTACHMENTS . None. I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . Andy Strauss AGENDA SECTION: AGENDA ITEM # REpORT # PUBLIC HEARING 7 133 .... STAFF REpORT RICHFIELD I I CITY COUNCIL MEETING JUNE 27,2006 REpORT PREPARED By: MELISSA POEHLMAN, ZONING ADMINISTRATOR NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: [J/ ri REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Public hearing regarding consideration of a resolution for the installation of a ground monument sign at 7525 Oliver Avenue (Woodlake Lutheran Church) that does not conform to the Si n Ordinance. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: Approve th attached resolution for special Council approval of a sign to be located four feet from the right-of-way at Woodlake Lutheran Church 7525 Oliver Avenue. I II. BACKGROUND I Woodlake Lutheran Church is requesting a new ground monument sign along its 76th Street frontage. The location of the current sign is no longer adequately visible due to a recently installed bus shelter and utility and civil defense siren poles on either side of Newton Avenue. The Church is requesting to install a new sign farther to the west. Normally, sign permit requests are approved administratively; however, the City Code requires that in the case of an application for a sign of unusual height, or location, the manager shall refer such sign to the Council for approval. In 062706 Wood lake Lutheran Sign accordance with Subsection 416.07 Subd. 3 of the City Code, institutional signs must be set back 10 feet from any right-of-way. The proposed sign is set back four feet from the right-of-way. I III. BASIS OF RECOMMENDATION I A. POLICY . Proposed sign is a ground monument sign. a Institutional ground monument signs are required to be set back 10 feet from the right-of-way. . Section 416.03 Subd. 6. Special approval from Council. In the case of an application for a sign of unusual height, or location, the manager shall refer such sign to the Council for approval. No permit for any such sign, so referred, shall be issued without first obtaining the approval of Council. I B. CRITICAL ISSUES I . The Church's existing sign is approximately 10.5 feet from the right-of- way. . The installation of a new bus shelter and utility poles has limited the visibility of the current sign. . The landscaped area that is available for the placement of a new sign narrows as one moves to the west. . In order to comply with the 10-foot set back, a new sign would have to be located within the parking lot and would reduce the number of parking spaces. . This parking lot is used for both the Church and as a park-and-ride facility for Metro Transit riders. . The proposed location of the sign allows for better visibility, while maintaining set backs that allow for both safe passage and snow removal and storage. . The Church has obtained the signatures of 13 property owners within the 350-foot notification area surrounding the property who have indicated that they are in favor of the proposal. . The sign is outside any visibility triangles. I C. FINANCIAL . N/A I D. LEGAL I . Notification of this hearing has been sent to residents and property owners within 350 feet of the subject property. I IV. ALTERNATIVE RECOMMENDATION(S) I . Deny the request for a sign to be placed within the 10-foot set back area. The Church must comply with set back requirements. I V. ATTACHMENTS . Resolution . Site plans . Sign dimensions . Existing sign . Computer rendering of proposed sign . Petition documents . Land use, zoning & petition maps I VI. PRINCIPAL PARTIES EXPECTED AT MEETING I . Mr. Chris Anderson - Representing Wood lake Lutheran Church 17-{ RESOLUTION NO. RESOLUTION FOR SPECIAL COUNCIL APPROVAL FOR A SIGN TO BE LOCATED FOUR FEET FROM THE RIGHT-OF-WAY AT WOODLAKE LUTHERAN CHURCH (7525 OLIVER AVENUE) WHEREAS, application has been made to the City of Richfield which requests special Council approval for a sign of unusual location on land generally located at 7525 Oliver Avenue, legally described as: The East 331 feet of the West 662 feet of the South % of the Northwest % of the Southwest % of Section 33, Township 28, Range 24, except streets. WHEREAS, the City has fully considered the request for approval of the requested sign; WHEREAS the proposed sign is reasonable and appropriate for the proposed location and purpose; WHEREAS the proposed sign will not have undue adverse impacts on governmental facilities, utilities, services, or existing or proposed improvements; WHEREAS the use will not have undue adverse impacts on the public health, safety, or welfare; NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota, as follows: 1. Special Council approval is granted for a ground monument sign to be placed four feet from the right-of-way, as described in City Council Staff Report No. , on the Subject Properties legally described above. 2. This special Council approval is subject to the following stipulations: . The sign must comply with all other applicable regulations of the City Code; . Applicable permits must be obtained before the sign is erected; and . The existing sign must be removed from the premise before sign permits can be issued. Adopted by the City Council of the City of Richfield, Minnesota this 27th day of June, 2006. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk r-I L.. I w ~ <=> I u I '" I l>\~ ~~+s ~ 1~c 0.- ) ~ o ,,"""'JL Q "'1' ~ vi .." ~ ~ ,.to /' ~ " 0.,_ l/.. -f ""'-l -y 15 N r ~ ~f:r A- I J . .b '~~vkl~6 .iI~ r-,tZl ~ ~I I I I I .~ ~ ni ~I I I I I 1 I 1 '" I- 11 j~: : '*- I -I 1 U D I I I Vl ZZW ._ ')(. III Ir:- I I I ti?<!~ w...J_ ~ !o,;. ~ ~ ~ ",0-'" I- ~ ='w<=> k - ~ ...JI-...J ~~ -w p.. ~ WVl- '" L.. ~~ I @ ~ '" I I I ...J ~ r: ~ '" I I I 1 D ::3 I I 'f I I I I I I I I I / ~ ~ ~ - -S:' \J .S;: ~t' \. ~- \\)--1 ~~ - <:J ~(') tn-:g N~ Lf)~ r-'-.; --~ ~ ~ \j)- ~ It'll' ~ :I ~ ~ \ll Z If) - b '"' f---p i J II - '0 1---" I h~ J ~l~ II "- r I--.. l: ./ I L.. llWlLA II::: II ~ r II I C. 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J: I- e ~ z ~ en "- +d-dJ+S' 'tf- ~ L I- W W LL. o _ ~ 0:: o Q. Q. ;:) en w e <( 0:: C) I 3: o ..J W OJ en ;:) ..J Q. J: I- e ~ z ~ en I- W W LL. It) I- 0:: o Q. Q. ;:) en w e <( 0:: C) I 3: o ...J W OJ o I- ~ ..J ~ W C en :e o 0:: u. w (.,) z ~ en C I- W W LL. oo;t - c w en o Q. o 0:: Q. I- o o LL. I oo;t I ~ (.,) <( m I- w en c w 0:: ;:) o ..W co:: WI- I-o mo ;:)LL. 00 w- 0::- I- ZW oW - u. b:<<) w (.,) >< w ~ 0:: o Q. Q. ;:) en w c <( 0:: C) I 3: o ..J W OJ o I- W z :J )0- I- 0:: w Q. o 0:: Q. :e o 0:: u. w (.,) z ~ en C W Q u '],.3 /-- ::> cD ~ ~ ~ / w ~z 5(') O(J) o OI sU 0::::: s~ WI ZU ~ w o (J) I I I I ,I I ~~ ~ ~ ~< ':::- ~ Q u NJ cr '" :I: U '" :::> -- U C) z t:J <I<IZ '" Z ~=z >-->--Q ..Jw-l QW W - '" "- t . I b <t "- It (\J '7' u i - t i t ~ ~ i ~ (\J ~ ~ " I. J l M ~ ! i ~ i . ~ ii1 Y ~i v ~ .~ ; ~ I .- "'If) ! i ~ " . It '"' I ; It ! i ~" ~ . It f.,_!~~:M~!~.~~::;.\~~q Community Development Department Applicant: jJ~~u~~ Address: 1fft?{S ~bti!.+-. .j. I am Requesting a Variance to Allow: _ d. 6/~~:;ctUu/of,~cb~ ~ ~~~~~Ie.J~.~~r 1;;-:k~ I AM IN FAVOR OF THE PROPOSED VARIANCE: Address (please print clearly) ~.. St * Signatures may not be removed after the petition is submitted to the City. City of Richfield . 6700 Portland Avenue South . 861-9760 1-~ Variance Petition .. II 1'~,;","',~~.~'~fJ~:-J"ik1 kJ~~J~ 1s;<s ~vtl+-. J. [Di.A~AH~ PLANNING ZONING CommunIty Development Department Applicant: Address: I am Requesting a Variance to Allow: - iJ ~~~~~~k, I AM IN FAVOR OF THE PROPOSED VARIANCE: *Signature (property owners only) Address (please print clearly) ~ 5'. ~r~' * Signatures may not be removed after the petition is submitted to the City. . 6700 Portland Avenue South RfCCIVt JUN; 0 06 2006 tins 'd. 'oo.... 41.. 861-9760 ...... City of Richfield . VARIANCE REQUEST FOR 7525 OLIVER AVENUE 2006 ~i I I I I I I H I I I I I I I I I I I I , td ~'-- I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I - - r-- - _r-- ~. __ - - - - - r-- - - - - - - '--- - - - - - - I--- - H - r-- - 7.4TI S"T' - I - - '---- j t - I-- - ---, \-- - - - - - ~ - - 1\ - ~ - - nJ3 - - - 76TH ST. I---~ IYV / ~ I - I-- - iii I/) - - 7525 ~ l'? - - - , - - } z - <( - I-- Cl - I7'i7" 9 - - ~ IT - I-- J - - 76TH ST. - U 1Ii\~ ~/ ,--- Q ~ I iii - ~ ~ - ~ I ~ - ~ I z - I :.:: - I I-- ~ \ I I- 0 . c: < . 0: ~ -- ~ -l------ - 1-494 Property Owner Signatures 'l-C] ZONING SYMBOLS ~ Petition signers ILJL...J o 212.5 425 I 850 I 1,275 I Feet 1,700 ~ N DATE 6-8-06 1-/0 VARIANCE REQUEST FOR 7525 OLIVER AVENUE 2006 ZONING OF PROPERTIES WITHIN 350 FEET IL....fL-.J o 270 540 - - - - - I J t~ SCH . APT gT. rr APT A APT APT ",~rS I /' 76TH ST. APT RES RES / APT 'APT \:01iif~ ~ RES RES 7525 RES RES ui APT APT ~ ~ RES RES ~ APr APT C CHURCH ~ RES RES z 'APT ~ - RES 9 - APT APT -;;:p;;- iji en HT I " " ll! \,r 76TH ST. / iii ~ ~ ~ z lI:: ) COM ~ C~ ~ t ~-- -- w ~ Z Z W Do 1-494 ZONING SYMBOLS RES = SINGLE FAMILY RESIDENTIAL APT = APARTMENT BUILDING SCH = SCHOOL COM = COMMERCIAL I 1,080 I 1,620 I Feet 2,160 DATE 6-8-06 ~ It) C') . D N '7-// VARIANCE REQUEST FOR 7525 OLIVER AVENUE 2006 ZONING OF PROPERTIES WITHIN 350 FEET ~i I I I I I I I Hi I I I I I I I I I I I I ~~:~ I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I I - - - t--- - t--- - t--- I--- - - - - - I-- - - - - I--- - I - - I-- - --1 f-- - - - 74'11 ST. - I . - - R - - - -...., r-- ~ f- - - C-.J L.- - , r---- - I:J lI""" - - - 70~_ M - - ~* ",<o\) - - f-- 76TH ST II I!!! / ~ I--- - I <l I- iii II) I-- I.. 7525 I~ ~ C') f-- '--- , n I~ 'lJ - I- z - R Il Tf 0( I- - J ~ !-- _Cl ~ - 0 l- =--- _..I - I- - II - l- I- 76TH ST. '-- J . ~ jI Tt w - '-- ~ .,,- ~ - ~ . - ~ . ~ ------- Z - . :0: - . PC-2 \ ~ - . =- 0 ~ l( . C . 0: ~ ~ l------------- 1-494 ZONING SYMBOLS R - Single-Family Residential MR-2 - Multi-Family Residential PC-2 - Planned General Commercial ILSLJ o 212.5 425 I 850 I 1,275 I Feet 1,700 ~ N DATE 6-8-06 AGENDA SECTION: OTHER BUSINESS AGENDA ITEM # 8 REpORT # 134 STAFF REpORT RICI--IFIEL~ CITY COUNCIL MEETING JUNE 27,2006 REpORT PREPARED By: BRIAN YOUNG, UTILITY SUPERINTENDENT NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: G' REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consider the award of contracts for the Lime Sludge Filter Press Replacement Project. I. RECOMMENDED ACTION: . By Motion: Approve the bid minutes and tabulation and award of contract to Magney Construction, Inc. for the total bid amount of $1,364,750.00 which includes the award of both Alternate Bid items for the re lacement of the Lime Slud e 'Presses. I II. BACKGROUND I The Water Treatment Plant was built in 1963. The lime sludge presses were added in 1984. The presses have not been replaced or had any major maintenance done to them. The sludge presses have performed well for the City, however, due to their age they are in need of replacement, parts have become costly and difficult to obtain. The alternate bids were for: . A new garage door to the dewatering building that houses the presses. . A new metal stairway that has deteriorated. 0627sludge The City hired Bonestroo, Rosene, Anderlik & Associates to prepare plans and specifications for the replacement of the lime sludge presses. I III. BASIS OF RECOMMENDATION I I A. POLICY I . A bid opening was held on May 11, 2006. . Pursuant to Section 8.04 of the City Charter, the project required an approval of a transitory ordinance because the estimated project cost exceeds $500,000. This process entailed a first reading held at the May 23 City Council meeting and a public hearing and second reading held at the June 13 City Council meeting . Magney Construction, Inc. was the lowest responsible bidder and is an established contractor that meets all of the City's requirements. I B. CRITICAL ISSUES I . The current lime sludge presses have spent they're useful life and are in need of replacement. Parts have become costly and difficult to find. . Approval at the June 27,2006 City Council meeting will allow the process to begin the replacement of the lime sludge presses. I C. FINANCIAL I . At the April 25, 2006 City Council meeting, Council approved the sale of $6,080,000 G.O. Water and Sewer Revenue Bonds, Series 2006A, for capital improvements at the Water Plant. . Accordingly, proceeds from the G.O. Water and Sewer Bonds will fund the replacement of the lime sludge filter presses. I D. LEGAL I . All contracts or purchases in excess of $25,000 require Council approval. . All contracts or purchases over $50,000 require sealed bids to be solicited by public notice . At the June 13 City Council meeting, a public hearing was held and subsequently Council approved the transitory ordinance for this project. I IV. ALTERNATIVE RECOMMENDATION(S) I . Council could reject all bids and instruct staff to re-advertise . Council may chose to take no action at this time. I V. ATTACHMENTS . Bid Minutes and Tabulations . Bid Evaluation I VI. PRINCIPALP ARTIES EXPECTED AT MEETING . None <( l- e en w z z ::iE ~ L1. J: o ~ L1. e ~ o 0><0 .~g I:: N E a> ~ci. a. ...- O...-g -0>>" .- co N CO:2 ..... I:: a> E>> a>..... u= CO'- _u a. co a>LL 0:::..... I:: C/) a> C/) E ~..... a.. co a> ~ ~ 21- = ~ LL2-.;t a> COo 0>> I -0><0 ::J-OO Cl)a>Q a>:Ez Eu-o ::i 0:: ai ..... o I:: ..ca> 3: E - a> ~u ~ co ~a. 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STAFF REpORT RICHFIELD CITY COUNCIL MEETING JUNE 27, 2006 REpORT PREPARED By: KA TIA MEDVETSKI, REDEVELOPMENT SPECIALIST NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: ~ ri REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: (1) First reading of a Transitory Ordinance authorizing the sale of real property for right-of-way purposes to the Minnesota Department of Transportation and the sale of excess right-of-way real property and other city-owned real property to the Richfield Housing and Redevelopment Authority and scheduling a public hearing and second reading for same (66th Street / TH 77 Interchange Project and Cedar Point Project); and (2) Approval of Purchase Agreement with Richfield Housin and Redevelo ment Authorit for the sale of land Cedar Point Pro"ect . I. RECOMMENDED ACTION: By motion: (1) Approve first reading of the attached Transitory Ordinance authorizing the sale of real property for right-of-way purposes to the Minnesota Department of Transportation and the sale of excess right-of-way real property and other city-owned real property to the Richfield Housing and Redevelopment Authority and scheduling a public hearing and second reading for same on July 11, 2006 (66th Street I TH 77 Interchange Project and Cedar Point Project) and (2) Adopt Resolution approving purchase agreement with the Housing and Redevelopment Authority in and for the City of Richfield for the sale of land Cedar Point Pro'ect . 062706 1 stTranOrd Land CedarPointREVISED I II. BACKGROUND I . On August 2, 1999 the City Council (City) held a study session to review the proposed layout to widen the 66th Street bridge at Trunk Highway 77 (TH 77) and improve the ramps (Bridge Project). This was in response to the findings of the Environmental Impact Statement for the new North-South runway at the airport that projected increase in truck traffic from the new air cargo facility and redevelopment on the east side of Richfield. . On August 9, 1999 the City approved a Memorandum of Understanding (MOU) between the Minnesota Department of Transportation (MnDOT), Metropolitan Airports Commission (MAC) and the City that delineated each agency's responsibility for the Bridge Project. . After a public hearing on the layout of the interchange in late November 1999 the City on January 24, 2000 approved a revised MOU and an agreement with MAC for funding land acquisition for the Bridge Project. . On February 26, 2002 another agreement with MAC was approved that outlined the procedures and conditions for acquiring residential properties in the 87db noise contour, and apartment properties on Cedar Avenue, north of 66th Street, with $10 million of federal funds. . On March 26, 2002 the City approved execution of an agreement with the Minnesota Department of Trade and Economic Development (Dted) for a $5 million grant to be used to purchase properties impacted by low frequency noise, namely along 18th Avenue, north of 66th Street. . On March 22, 2005 the City approved execution of an Agreement with Hennepin County for a $2 million grant in association with the Multi- Jurisdictional Reinvestment Program (MJP). . Since the availability of these funding sources, the City has been actively acquiring and ~Iearing land for the Bridge Project and assembling land for development of the area immediately adjacent to it. . Last year MnDOT began construction of the Bridge Project and certain public improvements on 66th Street East. . On May 16, 2005 the Richfield Housing and Redevelopment Authority (HRA) approved a Contract for Private Development (Developer's Agreement) with Ryan Companies US, Inc. (Developer) for a retail development, Cedar Point Commons (Development Project) that contemplates certain land conveyances. . On October 25, 2005 the City Council approved a two-lane roundabout design for the new intersection at 66th Street and 17th Avenue and a financing plan concept for proposed improvements. . It is now appropriate for the City to (1) sell real property to MnDOT for the Bridge Project; (2) sell excess real property from the Bridge Project and certain other city-owned real property to the HRA for subsequent resale to the Developer; and (3) sell certain additional land proposed to be acquired by the City for the new roundabout to the HRA contingent upon the City's ability to obtain title and possession to the real property. . Attached are two maps one entitled Right-of-Way Parcels (yellow) and one entitled Excess Right-of-Way Parcels (red). The Right-off-Way Parcels map indicates the land to be conveyed to MnDOT. The Excess Right-of-Way Parcels map is the residual land not needed by MnDOT and which will be conveyed to the HRA and subsequently to the Developer. . Staff is working with legal counsel in its review of the respective funding agreements for original acquisitions. All real property resales will be undertaken in accordance with these agreements. . Legal counsel has prepared the attached Purchase Agreement for land conveyances between the City and HRA. At this time it has been determined that a Purchase Agreement for conveyance of property to MnDOT is not needed. At this writing, the HRA is scheduled to consider this Purchase Agreement on June 26, 2006. . I III. BASIS OF RECOMMENDATION I I A. POLICY I . Since 2000 the City has acquired real property for right-of-way purposes and airport impacted real property for redevelopment in accordance with airport mitigative strategies. . Particular funding agreements identified above dictate the re-use and cost associated with disposing of the acquired lands. . The first reading of a transitory ordinance in accordance with the City Ordinance is the initial step in conveying city-owned land to MnDOT for the Interchange Project and to the HRA for redevelopment purposes. . A purchase agreement between the City and HRA is necessary to undertake the land sale transaction. I B. CRITICAL ISSUES I . MnDOT is nearing completion of construction of the Bridge Project and will take the land necessary for right-of-way by the Department of Transportation Commissioner's Orders, in accordance with Minnesota State Statutes. However, MnDOT would also like the conveyance of title to the land to be given by deed. · A permanent right-of-way line was set by MnDOT in discussions with City staff last year. More recently, the line was re-set to better accommodate the Development Project while addressing the needs of the Bridge Project. . The HRA, in accordance with the terms of the Developer's Agreement is required to sell certain land to the Developer for the Development Project. . At this writing, the Planning Commission is scheduled to consider a resolution finding that the sale of certain properties related to the Development Project conforms to the general plans for the development and redevelopment of the city. . Undertaking the first reading of a transitory ordinance at this time will allow the transitory ordinance process to be completed by the end of August, 2006 and allow the HRA to perform in a timely manner in accordance with the Developer's Agreement. I C. FINANCIAL I . Each agreement noted above has its own stipulations as to value of land at time of conveyance and time frames for performance. All land conveyances will be undertaken in accordance with these agreements. Staff continues to work with legal counsel on evaluating land values. I D. LEGAL I . The City's legal counsel has been working with staff and the HRA's legal counsel in reviewing land conveyance matters and the various contracts and funding agreements that encumber the land. . The public hearing and second reading of the transitory ordinance is proposed to be held on July 11, 2006 following consideration by the Planning Commission for land disposition and conformity to the Comprehensive Plan of the City on June 26, 2006. I IV. ALTERNATIVE RECOMMENDATION(S) I . Delay first reading of the transitory ordinance. . Do not proceed with the transitory ordinance process at this time. . Delay approval of the resolution. . Do not approve the resolution. I V. ATTACHMENTS . Transitory ordinance . Resolution . Purchase Agreement . Maps I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . N/A q -\ TRANSITORY ORDINANCE NO. AN ORDINANCE AUTHORIZING AND PROVIDING FOR THE SALE, TRANSFER OR OTHER DISPOSITION AND CONVEYANCE OF CERTAIN CITY OWNED REAL PROPERTY lOCATED IN THE CITY OF RICHFIELD, COUNTY OF HENNEPIN, STATE OF MINNESOTA The City of Richfield Does Ordain: Section 1. The real properties described in Exhibit A in the City of Richfield, County of Hennepin, State of Minnesota, are hereby authorized to be sold, transferred or otherwise disposed of and conveyed by the City as herein provided. Section 2. The Mayor and City Manager are hereby authorized to take all action as is required to sell, transfer, or otherwise dispose of and convey the real property described in the foregoing Section 1, including, by way of illustration and not limitation, the execution of all documents, purchase agreements, deeds of conveyance, and other instruments connected with such sale, transfer or disposition and conveyance. Passed this _ day of 2006 by the Richfield City Council. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk C}..-~ EXHIBIT A 6301-6539 All those parts of Lots 1 through 10 inclusive, Block 1, and Lots Cedar Avenue 1 through 12, inclusive, Block 8, and Lots 3 through 12 inclusive, Block 15, as dedicated in the plat of NEW FORD TOWN, according to the recorded plat thereof, Hennepin County, Minnesota 1820 66th Street E Lots 1, 13, and the South 50 feet of Lot 2, Block 1, Iverson's Third Addition, Hennepin County Minnesota 1800 66th Street E Lot 14, Block 1, Iverson's Third Addition, Hennepin County, Minnesota 1720 66th Street E Lot 1, Block 4, Iverson's Third Addition, Hennepin County, Minnesota 1714 66th Street E Lot 2, Block 4, Iverson's Third Addition, Hennepin County, Minnesota 1708 66th Street E Lot 3, Block 4, Iverson's Third Addition, Hennepin County, Minnesota 1700 66th Street E Lot 4, Block 4, Iverson's Third Addition, Hennepin County, Minnesota 6328 Cedar Avenue S Lot 3 and the North 40 feet of Lot 2, Block 3, Iverson's Third Addition, Hennepin County, Minnesota 6344 Cedar Avenue S Lot 1 and the South 60 feet of lot 2, Block 3, Iverson's Third Addition, Hennepin County, Minnesota 6400 Cedar Avenue S Lot 6, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6412 Cedar Avenue S Lots 4, 5, and the North 'Y2 of Lot 3, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6444 Cedar Avenue S Lots 1, 2 and the South 'Y2 of Lot 3, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6520 Cedar Avenue S Lot 4 and the South 71 feet of Lot 5, Block 1, Iverson's Third Addition, Hennepin County, Minnesota 6315 18th AvenueS Lot 9, Block 3, Iverson's Third Addition, Hennepin County, Minnesota 6321 18th Avenue S Lot 10, Block 3, Iverson's Third Addition, Hennepin County, Minnesota 6327 18th Avenue S Lot 11, Block 3, Iverson's Third Addition, Hennepin County, Minnesota 6333 18th Avenue S Lot 12, Block 3, Iverson's Third Addition, Hennepin County, Minnesota 6339 18th Avenue S Lot 13, Block 3, Iverson's Third Addition, Hennepin County, Minnesota 6345 18th Avenue S Lot 14, Block 3, Iverson's Third Addition, Hennepin County, Minnesota 6401 18th Avenue S Lot 7, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6409 18th Avenue S Lot 8, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6415 18th Avenue S Lot 9, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6421 18th Avenue S Lot 10, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6427 18th Avenue S Lot 11, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6433 18th Avenue S Lot 12, Block 2, Iverson's Third Addition, Hennepin County, Minnesota C1---?> 6439 18th Avenue S Lot 13, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6445 18th Avenue S Lot 14, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6509 18th Avenue S Lot 8, Block 1, Iverson's Third Addition, Hennepin County, Minnesota 6515 18th Avenue S Lot 9, Block 1, Iverson's Third Addition, Hennepin County, Minnesota 6521 18th Avenue S Lot 10, Block 1, Iverson's Third Addition, Hennepin County, Minnesota 6527 18th Avenue S Lot 11, Block 1, Iverson's Third Addition, Hennepin County, Minnesota 6533 18th Avenue S Lot 12, Block 1, Iverson's Third Addition, Hennepin County, Minnesota 6314 18th Avenue S Lot 14, Block 6, Iverson's Third Addition, Hennepin County, Minnesota 6320 18th Avenue S Lot 13, Block 6, Iverson's Second Addition, Hennepin County, Minnesota 6326 18th Avenue S Lot 12, Block 6, Iverson's Second Addition, Hennepin County, Minnesota 6332 18th Avenue S Lot 11, Block 6, Iverson's Second Addition, Hennepin County, Minnesota 6344 18th Avenue S Lot 9, Block 6, Iverson's Second Addition, Hennepin County, Minnesota 6400 18th Avenue S Lot 16, Block 5, Iverson's Second Addition, Hennepin County, Minnesota 6408 18th Avenue S Lot 15, Block 5, Iverson's Second Addition, Hennepin County, Minnesota 6414 18th Avenue S Lot 14, Block 5, Iverson's Second Addition, Hennepin County, Minnesota 1614 66th Street E Lot 2, Block 5, Iverson's Third Addition, Hennepin County, Minnesota 1620 66th Street E Lot 1, Block 5, Iverson's Third Addition, Hennepin County, Minnesota Between 6511 Cedar Avenue All of Lot 5, Block 1, New Ford Town, except the North 20 feet and 6521 Cedar Avenue and except the South30 feet thereof. Between 1820 East 66th All of Lot 2, Block 1, Iverson's Third Addition, except the South Street and 6528 Cedar 50 feet and except the North 46 feet thereof. Avenue Between 6520 Cedar Avenue All of Lot 5, Block 1, Iverson's Third Addition, except the South South and 6500 Cedar Avenue 71 feet and except the North 25 feet thereof. South Between 6344 Cedar Avenue All of Lot 2, Block 3, Iverson's Third Addition, except the South South and 6528 Cedar Avenue 60 feet and except the North 40 feet thereof. South All of the real property described above proposed to be platted as portions of Lots 1 - 8, Block 1, Lots 1-4, Block 2, and Outlot A, Cedar Point Commons, Hennepin County, Minnesota. The real property to be platted as Outlot A Cedar Point Commons shall be conveyed to the State of Minnesota Department of Transportation, and the remaining properties shall be conveyed to the Housing and Redevelopment Authority for the City of Richfield. Cf-y RESOLUTION NO. RESOLUTION AUTHORIZING PURCHASE AGREEMENT WITH THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD FOR THE SALE OF LAND WHEREAS, the City is the owner of certain real estate in the City of Richfield legally described in the attached Purchase Agreement; and WHEREAS, the City desires to sell, and the Housing and Redevelopment Authority in and for the City of Richfield (the "HRA") desires to purchase such real estate; and WHEREAS, a proposed purchase agreement (the "Purchase Agreement") for the transaction has been reviewed by the City Council and is informed as to it contents. NOW THEREFORE, BE IT RESOLVED by the City Council as follows: 1. The Purchase Agreement is approved, contingent upon City Council approval of a sale ordinance as required by the City Charter. Execution and delivery of a deed of conveyance by the City shall be deemed conclusive determination that the contingency has been met. 2. Subject to the contingency, the Mayor and City Manager are authorized to take all steps and do all things necessary to accomplish the transaction contemplated by this Agreement. Adopted by the City Council of he City of Richfield, Minnesota this 27th day of June, 2006. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk q~5 PURCHASE AGREEMENT This Agreement is made as of , 2006 by and between the CITY OF RICHFIELD, a Minnesota municipal corporation ("Seller") and HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, a public body corporate and politic under the laws of Minnesota ("Buyer"). Recitals A. Seller is the owner of certain real estate in the City of Richfield, County of Hennepin, legally described on the attached Exhibit A (the "Properties"). Seller intends to acquire the real estate legally described on the attached Exhibit B (the "Contingent Properties") but does not yet own those properties. B. Seller acquired some of the Properties for the purpose of airport noise mitigation, and the remaining portion of the Properties and Contingent Properties represent excess land acquired or to be acquired in connection with road improvement projects at Trunk Highway 77 and 66th Street and at 17th A venue and 66th Street. C. Buyer desires to acquire the Properties and Contingent Properties in furtherance of a redevelopment project that will further Seller's objective to provide additional airport noise mitigation in the area of the Properties. D. Seller deems it to be in the public interest to convey the Properties and Contingent Properties to Buyer pursuant to the terms of this agreement. E. This agreement is made pursuant to Minn. Stat. S 465.035 and S 471.64. Terms 1. Purchase Price. The purchase price for the Properties and Contingent Properties is One Dollar ($1.00), which Buyer shall pay at closing. 2. Deed. Seller agrees to convey the Properties and Contingent Properties to Buyer by one or more quit claim deeds. Seller and Buyer agree to execute and deliver customary closing documents, including but not limited to affidavit of seller. 3. Contingency. Seller's obligation to convey the Contingent Properties is contingent upon Seller's ability to acquire fee title to the Contingent Properties. 4. Title. Buyer shall be responsible for reviewing the condition oftitle to the Properties and Contingent Properties and for resolving any title defects, if any. Buyer may refuse to accept title to any individual property if Buyer finds the condition of title to that property to be unsatisfactory in any respect. 292313v2 CAH RC145-549 1 q-(P 5. Closing. The closing shall occur on a date that is mutually agreeable to the parties. 6. Closing Costs. Seller shall pay real estate taxes, if any, due and payable in the year of closing and prior years. Buyer shall assume real estate taxes due and payable in the year following closing. Seller shall pay all special assessments levied against the Properties and Contingent Properties prior to Closing. Buyer shall assume all pending special assessments. Buyer shall pay deed tax and all other closing costs not specifically mentioned in this paragraph. CITY OF RICHFIELD By Its Mayor By Its City Manager HOUSING AND REDEVELOMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By Its Chairperson By Its Executive Director 292313v2 CAH RC145-549 2 Cf-l EXHIBIT A Legal Descriptions of Properties 6301-6539 All those parts of Lots 1 through 10 inclusive, Block 1, and Lots 1 Cedar Avenue through 12, inclusive, Block 8, and Lots 3 through 12 inclusive, Block 15, as dedicated in the plat of NEW FORD TOWN, according to the recorded plat thereof, Hennepin County, Minnesota 1820 66th Street E Lots 1, 13, and the South 50 feet of Lot 2, Block 1, Iverson's Third Addition, Hennepin County Minnesota 1800 66th Street E Lot 14, Block 1, Iverson's Third Addition, Hennepin County, Minnesota 1720 66th Street E Lot 1, Block 4, Iverson's Third Addition, Hennepin County, Minnesota 1714 66th Street E Lot 2, Block 4, Iverson's Third Addition, Hennepin County, Minnesota 1708 66th Street E Lot 3, Block 4, Iverson's Third Addition, Hennepin County, Minnesota 1700 66th Street E Lot 4, Block 4, Iverson's Third Addition, Hennepin County, Minnesota 6328 Cedar Avenue S Lot 3 and the North 40 feet of Lot 2, Block 3, Iverson's Third Addition, Hennepin County, Minnesota 6344 Cedar Avenue S Lot 1 and the South 60 feet oflot 2, Block 3, Iverson's Third Addition, Hennepin County, Minnesota 6400 Cedar Avenue S Lot 6, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6412 Cedar Avenue S Lots 4, 5, and the North ~ of Lot 3, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6444 Cedar Avenue S Lots 1,2 and the South ~ of Lot 3, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6520 Cedar Avenue S Lot 4 and the South 71 feet of Lot 5, Block 1, Iverson's Third Addition, Hennepin County, Minnesota 6315 18th Avenue S Lot 9, Block 3, Iverson's Third Addition, Hennepin County, Minnesota 6321 18th Avenue S Lot 10, Block 3, Iverson's Third Addition, Hennepin County, Minnesota 6327 18th Avenue S Lot 11, Block 3, Iverson's Third Addition, Hennepin County, Minnesota 6333 18th Avenue S Lot 12, Block 3, Iverson's Third Addition, Hennepin County, Minnesota 6339 18th Avenue S Lot 13, Block 3, Iverson's Third Addition, Hennepin County, Minnesota 6345 18th Avenue S Lot 14, Block 3, Iverson's Third Addition, Hennepin County, Minnesota 6401 18th Avenue S Lot 7, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6409 18th Avenue S Lot 8, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6415 18th Avenue S Lot 9, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 292313v2 CAH RC145-549 C) -<3 6421 18th Avenue S Lot 10, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6427 18th Avenue S Lot 11, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6433 18th Avenue S Lot 12, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6439 18th Avenue S Lot 13, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6445 18th Avenue S Lot 14, Block 2, Iverson's Third Addition, Hennepin County, Minnesota 6509 18th Avenue S Lot 8, Block 1, Iverson's Third Addition, Hennepin County, Minnesota 6515 18th Avenue S Lot 9, Block 1, Iverson's Third Addition, Hennepin County, Minnesota 6521 18th Avenue S Lot 10, Block 1, Iverson's Third Addition, Hennepin County, Minnesota 6527 18th Avenue S Lot 11, Block 1, Iverson's Third Addition, Hennepin County, Minnesota 6533 18th Avenue S Lot 12, Block 1, Iverson's Third Addition, Hennepin County, Minnesota 6314 18th Avenue S Lot 14, Block 6, Iverson's Third Addition, Hennepin County, Minnesota 6320 18th Avenue S Lot 13, Block 6, Iverson's Second Addition, Hennepin County, Minnesota 6326 18th Avenue S Lot 12, Block 6, Iverson's Second Addition, Hennepin County, Minnesota 6332 18th Avenue S Lot 11, Block 6, Iverson's Second Addition, Hennepin County, Minnesota 6344 18th Avenue S Lot 9, Block 6, Iverson's Second Addition, Hennepin County, Minnesota ,6400 18th Avenue S Lot 16, Block 5, Iverson's Second Addition, Hennepin County, Minnesota 6408 18th Avenue S Lot 15, Block 5, Iverson's Second Addition, Hennepin County, Minnesota 6414 18th Avenue S Lot 14, Block 5, Iverson's Second Addition, Hennepin County, Minnesota 1614 66th Street E Lot 2, Block 5, Iverson's Third Addition, Hennepin County, Minnesota 1620 66th Street E Lot 1, Block 5, Iverson's Third Addition, Hennepin County, Minnesota Between 6511 Cedar Avenue All of Lot 5, Block 1, New Ford Town, except the North 20 feet and 6521 Cedar Avenue and except the South30 feet thereof. Between 1820 East 66th Street All of Lot 2, Block 1, Iverson's Third Addition, except the South and 6528 Cedar Avenue 50 feet and except the North 46 feet thereof. Between 6520 Cedar Avenue All of ot 5, Block 1, Iverson's Third Addition, except the South 71 South and 6500 Cedar Avenue feet and except the North 25 feet thereof. South Between 6344 Cedar Avenue All of Lot 2, Block 3, Iverson's Third Addition, except the South South and 6528 Cedar Avenue 60 feet and except the North 40 feet thereof. South 292313v2 CAH RC145-549 Cl"q Exhibit B Legal Descriptions of Contingent Properties 1614 66th Street E Lot 2, Block 5, Iverson's Third Addition, Hennepin County, Minnesota 1620 66th Street E Lot 1, Block 5, Iverson's Third Addition, Hennepin County, Minnesota 292313v2 CAH RC145-549 !Iljm ii TAFT PARK - ~ I 63RD ST. ,< 1f1 I I 6301 ! 1130d ') "N' E 6314 6315 6311 ~~ C ITY OF L 6315 , lfY ~ 21 6320 6321 ~~i> 1t] (;,:i: 6328 CE OAR POINT 6333 6332 6333 .'.. 6333 , 'If. i'" '1~~38~:: LAND 6339 6339 .\:.:;~--- 6341 CON VEYANCE [iI' 6344 if 6345 6344 6345 6345 ,C<,'., PR OPERTIES 64TH ST. f: "", i. ',. '" i.i' ;" ,~ . ii': t.'.., r~' i' '; ;':~i .i"., .V i' '." :V" . ;: ,10 .~:i L., " ; } ;'. i; ; f.. ;':: t;' ;~i , \: E: " i01 6400 1'1 ' 6408 ~15 6414 "if ~ ~~1 ,! ~~I <C ~2~i ~?~~ S 1I}~;' 643" i;~~9 64~1 j~5 ii :JiM ri !,_ .0" Il!!O 1 Xi ""UU" ~~9 ~ if!'},! ~r5 651/ g~~~;!j ~( I~,; ~~j~1 3~;'; sa{~,l o co '''It 0 ~ ~ E ~ l. 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RECOMMENDED ACTION: By Motion: Adopt the attached Resolution approving the modification to City Agreement, including the Public Improvements and Special Assessment Agreement and Option and Right of First Refusal A reement with R an Com anies US, Inc. I II. BACKGROUND I On May 16, 2005 the Richfield Housing and Redevelopment Authority (HRA) approved a Contract for Private Redevelopment (Contract) with Ryan Companies US, Inc. (Ryan) for the redevelopment of the Cedar Point area. The Contract requires the City and Ryan to enter into the City Agreement, including Special Assessment Agreement and Right of First Refusal Agreement (Agreement) regarding the construction of the new intersection at 17th Avenue and 66th Street prior to Ryan closing on HRA and City-owned properties. On June 13, 2006 the City Council approved the City Agreement, which included the Special Assessment Agreement and the Option and Right of First Refusal Agreement. 061306 Special Assessment and Excess Land The changes to the City Agreement include the changes that the City Attorney briefed the Council at the June 13th meeting: . Ryan will be responsible for moving utilities within the 66th Street right-of-way in association with the construction of the new intersection, and the City will reimburse Ryan. . The City agrees to assigns all rights the City has with regard to enforcing the liquidated damage provision of its contract with the contractor responsible for the construction and completion of the intersection project. . The City can void the intersection construction contract if the contractor does not perform by August 1, 2007 and have Ryan complete the intersection project. . If Ryan is required to complete the intersection project, the City shall reimburse Ryan in an amount equal to the amount that would have been paid to the contractor in default pursuant to terms and conditions of the contract. . The City shall provide Ryan with preliminary plans and specifications work for the intersection project on or before September 1, 2006. . The intersection project shall be constructed consistent with the preliminary plans and specifications approved by Ryan subject to requirements of the governmental agencies required to approve the plans and specifications. . The land subject to the Option and Right of First Refusal includes all land that the City acquires in connection with the intersection project within the area bounded by 67th Street on the south, 16th Avenue on the west, 65th Street on the north, and 18th Avenue on the east that is in excess of the land that is actually used for the intersection project right-of-way. . Ryan's Right to Purchase by Option is limited if the City passes a resolution within 2 % years from the date of the Agreement that the City intends to construct an access road over a portion of the Excess Land for the municipal store and if the access road is constructed within 4 years of the date of this Agreement. In addition, following are the proposed amendments to the City Agreement since June 13, 2006: . A detailed Milestone Work Schedule for the construction of the new intersection, and the City's contract for the new intersection shall include the Milestone Work Schedule. . If the project exceeds budget, the southern leg of the intersection is the part of the project that will be eliminated. . The City and Ryan will continue to discuss responsibilities of the public improvements and bring those agreements to the City Council as amendments to this Agreement. . The City no longer needs Target's consent to build the roundabout. . The mistakenly omitted option of constructing a liquor store on the west side of 17th Avenue extended has been replaced. . The City agrees that on July 11, 2006 the City Council shall approve an ordinance authorizing the City to sell the portion of the HRA property that is owned by the City to the HRA. . The City agrees to purchase from Ryan the Third Party Property which has been acquired by Ryan and assume Ryan's obligation to purchase Third Party Property which have not yet closed if the City fails to approve an ordinance authorizing the City to sell the portion of the HRA property that is owned by the City to the HRA. BASIS OF RECOMMENDATION I III. . I POLICY I . In July 2005 the HRA approved a Contract for Private Development with Ryan to build a SuperTarget and Home Depot store at the northwest corner of TH 77 and 66th Street. On October 25, 2005 the City Council approved a two-lane roundabout design for the new intersection at 66th Street and 17th Avenue and a financing plan concept for proposed improvements that would require a $4 million 429 Special Assessment Bond with the developer paying 20% of the project costs. The proposed improvement is consistent with Goal 4 of City's Comprehensive Plan - Encourage and facilitate the preservation and development of a transportation infrastructure that provides a high degree of accessibility for destinations in and around Richfield. The intersection project is consistent with the City's adopted Cedar Avenue Corridor Redevelopment Concept Master Plan. On June 13, 2006 the City Council approved the Agreement which included the Special Assessment Agreement and the Option and Right of First Refusal Agreement. . IA. . . I B. CRITICAL ISSUES I . Under the proposed City Agreement the City shall start construction no later than March 1, 2007 and be completed no later than August 1, 2007, provided that Ryan closes on the HRA and City-owned property no later than November 1, 2006. . The amendment clarifies that the City can void the intersection construction contract if the contractor does not perform by August 1, 2007 and have Ryan complete the intersection project. . The proposed City Agreement imposes certain requirements on the City in the event that it does not approve the ordinance authorizing sale to the HRA and approve the final plat by the agreed dates. These matters will require further discussions at the Council meeting. I C. FINANCIAL I · The intersection project depends on Council approval of a $4.5 million 429 Special Assessment Bond with the developer paying 20% of the project costs and the community paying the balance. Other funding for the intersection will be provided by the Metropolitan Airports Commission (for right-of-way acquisition) and the City's Municipal State Aid Street funds (gas tax revenues.) I D. LEGAL . The City's legal counsel and Ryan's attorney are continuing to negotiate the amended Agreements, The final proposed Agreement will be presented by the City Attorney at the Council meeting. I IV.. ALTERNATIVE RECOMMENDATION(S) I · Approve the proposed amendments to the City Agreement with added provisions or modifications. . Do not approve the proposed amendments. . Delay consideration. I V. ATTACHMENTS . Resolution . City Agreement I VI. PRINCIPAL PARTIES EXPECTED AT MEETING I · A representative of Ryan Companies US, Inc. r :)-{ RESOLUTION NO. RESOLUTION APPROVING AGREEMENT WITH RYAN COMPANIES US, INC. WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "Authority") is undertaking a redevelopment project called Cedar Point, hereinafter called the "Project"; and WHEREAS, the Project is included within The Richfield Redevelopment Project Area, duly established by Resolution No. 8030, adopted on June 14, 1993 (the "Project Area"); and WHEREAS, The Authority and Ryan Companies US, Inc ("Ryan") entered into that certain Contract for Private Development dated July 27, 2005, as amended by the First Amendment to Contract for Private Development dated June 26, 2006 (the "Development Agreement"); and WHEREAS, the City Council approved the instrument entitled Agreement ("Agreement") on June 13, 2006; and WHEREAS, the City and Ryan desire to amend the Agreement to satisfy the precondition to Closing setforth in Section 11.7 of the Development Agreement; and WHEREAS, the City has reviewed the terms of a proposed amendment agreement (the "Agreement") with Ryan, and has received the recommendation of City staff regarding the terms of the amended Agreement. NOW, THEREFORE, BE IT RESOLVED by the City of Richfield, Minnesota as follows: 1. The Agreement is approved in substantially the form presented. 2. The Mayor and City Manager are authorized to execute the Agreement on behalf of the Council and to take all actions and do all things that are reasonable necessary to the fulfillment of the City's obligations under the Agreement. Approved by the City Council of the City of Richfield this 27th day of June 2006. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk (D-~ MARKED TO SHOW CHANGES 062206 AGREEMENT This Agreement ("Agreement") is entered into as of this day of June, 2006, by and between THE CITY OF RICHFIELD, a municipal co oration under the laws of the State of Minnesota (the "City") and RYAN COMPANIES a Minnesota corporation ("Developer"). A. The HRA and Developer e Development dated July 27, 2005, as amended b Development dated June _, 2006 (the "Develop B. The Development Agreement Closing is for the City and Developer improvements and special assessments certain property. that a precondition to regarding intersection t refusal with regard to C. The City and Develop Section 11.7 of the Developme re D. Defined te Development Agreement. shall be defined as set forth in the tal Assessment A reement. At Closing, the City Public provements and Special Assessment Agreement in eto. The execution and delivery of the Public Improvements t is contingent upon the execution and delivery of the Option nt as provided in paragraph 2. Developer B attached he Agreement is co Special Assessment A t of First Refusal A reement. At Closing, the City and tion and Right of First Refusal Agreement in the form of Exhibit ecution and delivery of the Option and Right of First Refusal pon the execution and delivery of the Public Improvements and ement as provided in paragraph 1. 3. Ordinance for Sale of Excess Land. The City has adopted the necessary ordinance to authorize the sale of the Excess Land to Developer pursuant to the terms and conditions of the Option and Right of First Refusal Agreement. / () -3 4. Ordinance for Sale ofHRA Property and Platting. The City acknowledges that in order to induce Ryan to waive its rights to terminate the Development Agreement and to send its notices to the owners of the Third Party Property that Ryan is removing all contingencies from the purchase agreements such that Ryan is then obligated to purchase all of the Third Party Property (the "Third Party Property Notices"), Ryan needs the assurance from the City as set forth in this paragraph regarding the City approving an ordinance authorizing the City to sell the portion of the HRA Property which it owns to the the City's platting of the Development Property. In order to induce Ryan to waiv rminate the Development Agreement and to cause Ryan to issue its Thir tices, the City agrees as follows: a. On July 11, 2006 the Ci to sell the portion of the H HRA. b. Property consistent lfst City Council ust 31, 2 or the date title to the . h is subject to a condemnation rovides the City with a title lie National Title Insurance eptions to the title to the ounty approves the plat for ent, (iii) the plat is approved by Third Party Property including, but not limited to the purchase prices, relocation costs, closing costs, brokerage fee and consultants fee (including environmental, soil, relocation). Ryan shall convey Third Party Property 'which it ovms to the City by limited '."arrant)' deed and shall assign the purchase agreements for Third Party Property \vhich Ryan is obligated to purchase but has not yet closed.. under any ourchase aQreement for the nurchase of such oronertv. (in Day to Rvan the Third Party Pronertv AssiQnment Price (as defined below). (iii) faithfully and diliQentlv nerform all of Rvan's obliQations under said nurchase aQreements and otherwise related to the 10 - L} transaction contemolated therein (includilllz without limitation oavimr. as and when due. the aoolicable ourchase orice for the orooertv. any brokeral!e commissions owed bv Rvan in connection with the transaction. and any relocation oavments owed to any owner or occuoant of such orooertvt and (iv) indemnify. defend and hold harmless Rvan from and al!ainst any claim. loss. liability. damal!es. costs or exoenses (includinl! reasonable attorneys' fees) asserted al!ainst or incurred bv Rvan as a result of the City's or the HRA's. as the case may be. failure to oerform , ... . transactions se Price" shall R an to the rior III any number of counterparts, Iginal and all of which counterparts the same instrument. ment shall be deemed to be a contract made under 11 purposes shall be governed and construed in may be amended only by subsequent written All previous negotiations and understandings between the parties s and employees with respect to the subject matter of this Agreement merged into this Agreement, and this Agreement alone fully and completely ex ies' rights, duties and obligations with respect to its subject matter. This Agreement, c Improvements and Special Assessment Agreement and the Option and Right of First R sal Agreement do not create any contractual relationship, rights, or obligations of the City under the Development Agreement. (Signature page follows) IO-S:- IN WITNESS WHEREOF, the parties have executed this Agreement effective as of the day and year first above written. RYAN COMPANIES US, INC. #3232152\WU 062206 4048066JDOC (0 - tp EXHIBIT A TO AGREEMENT (Form of Public Improvements and Special Asse 10-( 062206 PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENT AGREEMENT THIS PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENT AGREEMENT (this "Agreement") is made and entered into as of this _ day of , 200_, by and between CITY OF RICHFIELD, a municipal corp tion under the laws of the State of Minnesota ("City"), and RYAN COMPANIES US, INC. a corporation ("Ryan"). A. Ryan and The Housing and Richfield, Minnesota (the "HRA"), entered i dated July 27, 2005, as amended by that ce Development dated , 2006 (as pursuant to which Ryan agreed to purchase fro legally described on Exhibit A attached hereto (the the Development Property in accordance wi B. Section 11.7 of the Dev Ryan closing on its purchase of the D agreement requiring (i) the City to c the vicinity of the Developmen ro construction through semia ayment Development Property by the t provide that, as a precondition to and the City must enter into an nd roadway improvements in a portion of the cost of such assessment levied against the re negotiating erms and conditions for the construction ovements, including but not limited to, utility relocation ormwater pond to be performed by Ryan and other Ryan and the City (collectively, the "Additional lic Improvements are in addition to the public ection Project. esire to formalize the terms and conditions of their agreement vements and special assessment as provided below. good and valuable consideration, the receipt and sufficiency of , the City and Ryan agree as follows: 1. of Intersection Pro' ect. The City shall construct pursuant to the plans and specificatl described in Section 5 hereof (i) the intersection located at 66th Street between the current location of 17th Avenue and 18th Avenue (the "South Intersection"); (ii) the intersection located approximately 300-500 feet north of the South Intersection (the "North Intersection"); (iii) the roadway improvements related to construction of the South Intersection and the North Intersection, including, but not limited to the realignment of 17th Avenue and vacating existing rights of way, (iv) the utilities in 1 ih Avenue, the South Intersection and the North Intersection which are necessary for the improvements to be constructed on the Development Property and for the South Intersection and North Intersection; and (v) the , 0 ---'6' landscaping improvements in the median of 66th Street and the landscaping and structural improvements in the roundabout (the construction of the South Intersection, the North Intersection and the related utility, roadway, landscaping and structural improvements is hereinafter collectively referred to as the "Intersection Project"). The Intersection Project shall commence no later than March 1, 2007, and shall be completed as hereinafter provided, provided that the closing occurs no later than November 1,2006. The parties acknowledge and agree that the Intersection Project will benefit the Development Pro and ther property in the vicinity. Notwithstanding the foregoing to the contr located within and adjacent to 66th Street (the" Ryan for the Ryan Utility Work an amount charged the City to perform such work. Th receipt of Ryan's invoice for the work which is elocate all private utilities The City agrees to pay utilities would have 0) days of Ryan acknowledges that the City does not in any way to complete the Intersection Proje incorporate into its contracts for the constructio of the Inte following paragraphs or the City fails to obligatio paragraphs (collectively the "City Obli . ackno es that if it performs the City Obligations and the City fails to c oject to be completed by August 1, 2007, Ryan, Target Corporation an bstantial damages, including additional development costs, lost s r damages resulting from the delay in the completion of the rse PlY and Ryan agree that if the City performs the City Obligation . lieu 0 damages by the Ryan or any third party for the City's failure t te the Int ect, the City hereby assigns all rights the City has with regard g the liqm age provision of its contract with the contractor responsible fo tion and completion of the Intersection Project. The City agrees to en . 0 such a of assignment and other documents as reasonably require take a onably necessary in order that Ryan is entitled to colle es. s folIo will re Milestone/ e that the City will be awarding a contract for the Intersection ilestone work and completion dates as hereinafter provided '). The contract will provide that the contractor will incur a breach of contract which results in a failure to complete the orresponding completion dates. The City agrees that the City awarded for the Intersection Project to include the s follows: Completion Dates Bid Documents Complete Contract A ward Demolition and earthwork Complete Utilities Complete Wed. 11/1/06 Tues. 2/13/07 Fri. 6/1/07 Open 2 {O ,,-. 9 Curb Complete Paving, striping and signage Complete Signalization Complete Substantially Complete - Open to traffic, last lift of asphalt installed, permanent traffic signs and striping Landscaping Complete Lighting Complete 100% complete - Government acceptanc punchlist complete Open Open Open Wed. 8/1/07 The Completion Dates that are indicated as "Op and Ryan and included in any contracts awarde hereby made a part hereof and incorporated by reference. The completion dates of June I and t Utility Work will not interfere with an The said contract shall provid the amount of at least $2,500 per day for a breach of contrac hI s comply with the terms of the contract, including the Miles omp eti withstanding the foregoing to the contrary, if the contract that p for liqUl. s also provides for an incentive, then the amount of the liquidat es shall be qual the daily amount of the incentive; provided, however, the amages shall III no event be less than One Thousand Five Hundred and Noll 00 Dolla ). The said contract shall also include a provision which will allo ortion of the Intersection Project work as provided in the co tractor defaults under the terms and conditions of the ith the Milestone/Completion Dates. In the event er the C ract, including relating to the Milestone/Completion able steps which in its judgment will facilitate the completion with the Milestone/Completion Dates, including taking over rce the liquidated damages provision. The City shall provide Rya actor defaults under the contract terms, including performing milesto ompletion date set forth above immediately upon such default and discus ity's plans to facilitate completion of the contract work in accordance WI t terms, including the Milestone/Completion Dates. Upon such default, the City s cise its right to take over the work to the extent requested by Ryan and retain Ryan to compl such requested work at the earliest possible date. The City shall pay Ryan for any such work requested by Ryan and any other work Ryan agrees to perform in an amount equal to the amount that would have been paid to the contractor in default pursuant to terms and conditions of the contract, including on the basis of the scope of work and unit and other pricing set forth therein. Prior to letting any contract for the Intersection Project, the City agrees to provide a copy of said contract to Developer for review to ensure that the milestone/completion dates, liquidated damage and takeover provisions are incorporated therein. 3 fO -(0 2. Contribution by Ryan. Ryan shall pay twenty percent (20%) of the cost of the Intersection Project; provided, however, that in no event shall Developer pay less than Four Hundred Sixty Thousand and No/I00 Dollars ($460,000.00) nor more than Nine Hundred Ten Thousand and No/IOO Dollars ($910,000.00) for the Intersection Project (the "Contribution"). Developer requires and the City agrees that $50,000 of the Contribution shall be used for the structural improvements in the roundabout and the landscaping for the Intersection Project. 3. Payment of the Contribution. The first S Contribution shall be paid by Ryan through equal i levied by the City against the Development Pr Commons for a 20-year period and the balance equal semi-annual payments levied by the Cit period (collectively the "Special Assessment"). d Dollars ($60,000) of the s of a special assessment 6, Block 1, Cedar Point paid b Ryan through a 20-year "all provide Ryan with tion ProJ or before September 1, ent on the preliminary plans and .od after Ryan's receipt of the rsection must meet minimum not result in a total cost for the ifty Thousand and NollOO Dollars inimum standards by not later than ch plans an ations, and (iii) the minimum standards the governmental agencies required to approve the plans r the Intersection Project exceeds Four Million Two 000.00), then Ryan's minimum standards shall not the roundabout intersection. Except as set forth , the design and construction of the Intersection e prelim ary plans and specifications approved by Ryan and by Ryan as hereinbefore provided, subject to requirements of d to approve the plans and specifications and otherwise the the sole and absolute discretion of the City. y will use a "roundabout" intersection design for the South Intersection. e use of a roundabout for the South Intersection, if the County and MnDDT appro a roundabout. The North Intersection shall be of a typical/non- roundabout design onstructed as part of the Intersection Project. If the City determines in the future to reconst t the North Intersection as a roundabout, Ryan and its successor may object to such an intersection design and neither Ryan nor its successors to the Development Property shall be further assessed for the first of such future reconstructions. 7. Maintenance. The City shall maintain the landscaping portion of the Intersection Project and future improvements to any portions of the Intersection Project and the costs thereof shall be paid from monies received by the City through an assessment district to be created by 4 (0 -- ( I the City, except as otherwise provided in the Maintenance Agreement between the City and Ryan. 8. Additional Public Improvements. The City and Ryan shall proceed with their negotiations with regard to the Additional Public Improvements to be completed by the City and by Ryan. The agreement of the City and Ryan with regard to the Additional Public Improvements will be set forth in an amendment to this A eement. 9. Severability. If any provision of this provision, if feasible, shall be deemed to be mo validity; if, however, the offending provision ' other provisions of this Agreement in all other id or unenforceable, such limits of enforceability or all be stricken and all ble. 10. Headings. The paragraph headin for convenience only, are not a part of this interpreting this Agreement. 11. Entire A reement. Amen understanding of the parties regarding th prior oral or written agreement (incl related to such subject matter. This A an instrument signed by the parties. ets forth the entire 12. Recitals/Exhibi incorporated herein by ref ere incorporated in and made ove are true and correct and are and attached to this Agreement are greement may be executed simultaneously in two deemed an original, and all of which together shall (Signatures page follows) 5 ((9- t~ IN WITNESS WHEREOF, the City and Ryan have executed this Public Improvements and Special Assessment Agreement effective as of the day and year first above written. CITY OF RICHFIELD 6 (0 - l ~ EXHIBIT A TO PUBLIC IMPROVEMENTS AND SPECIAL ASSESSMENT AGREEMENT (Legal description of the Development (0 - (4 EXHIBIT B TO AGREEMENT (Form of Option and Right of First Refusal greement is attached.) CO -l S- 062006 OPTION AND RIGHT OF FIRST REFUSAL AGREEMENT THIS OPTION AND RIGHT OF FIRST REFUSAL AGREEMENT (this "Agreement") is made and entered into as of this _ day of , 200_, by and between CITY OF RICHFIELD, a municipal corporation unde f the State of Minnesota ("Optionor"), and RYAN COMPANIES US, INC. i ation ("Optionee"). A. Optionee and The Housing an Richfield, Minnesota (the "HRA"), entered into dated July 27, 2005, as amended by that cert . Development dated December _, 2005 (as pursuant to which Optionee agreed to purchas legally described on Exhibit A attached h the Development Property in accordanc ment, Optionee and Optionor ent Agreement dated as of the ates Optionor to construct certain e Development Property as further C. of the Dev purchas grant' by the execution of the Intersection Agreement, Section 11.7 s that, as a precondition to Optionee closing on its ionee and Optionor must enter into an agreement efusal to purchase certain real property acquired n of the Intersection Project. nee desire to formalize the terms and conditions of their oned option and right of first refusal as set forth below. otherwise defined herein shall be defined as set forth in the , in consideration of the payment by Optionee to Optionor of Twenty and Noll 0 rs ($20.00) as "Option and Right of First Refusal Consideration," the mutual covenants and agreements contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1.0 Land Subiect to the Option and Right of First Refusal. The land subject to the Option (as defined below) and the Right of First Refusal (as defined below) includes all land that Optionor acquires in connection with the Intersection Project within the area bounded by 6ih Street on the south, 16th Avenue on the west, 65th Street on the north and 18th Avenue on the east 1 (0 - ((::> that is in excess of the land that is actually used for the Intersection Project right-of-way and includes, but is not limited to the land described on the attached Exhibit B (the "Excess Land"). The Excess Land shall include all rights, privileges, easements, tenements, hereditaments and appurtenances belonging thereto, including without limitation all rights and title to adjacent public easements or rights-of-way. In the event Optionee desires to exercise the Option to purchase less than the entire Excess Land, Optionor agrees to cooperate with a replatting of the Excess Land at Optionee's expense, to be effective upon sing 0 the purchase of such portion of the Excess Land. As Optionor acquires Excess Land ribed on attached Exhibit B in connection with the Intersection Project, Opti s land to be surveyed, the legal description of such land shall be attache 0 and Exhibit B shall be amended from time to time as new portions of and s rveyed. 2.0 0 tion to Purchase the Excess exclusive right and option to purchase the Excess the period beginning on the date of this Agreem p.m. Central Time on the date that is ten (10) ye pursuant to paragraph 17 hereof (the "Optio shall be payable in full at Closing (as defi following Optionee's exercise of the Optionee to Optionor, the Closing sha t Exces more tha Exercised Ex agree upon the petition to the Henn County District Judge. 3.0 Purchase Price. The p rice") for the Excess Land, or portion thereof on which Optio lec 0 e ion (the "Option Exercised Excess Land"), shall be an amount 0 the D e of such Excess Land, or portion thereof, as raw land, whic s all impr the Excess Land, or portion thereof, including but not limit ings, bas em d utilities have been demolished and removed. If Optionor an ot mutually agree on the fair market value of the Excess Land, or.R' of, wit e (45) days after the date that Optionee exercises the Option ue of and, or portion thereof, shall be established by an appr and If the parties cannot agree on the selection of an ap . appoint ppraiser and the two appraisers so appointed shall n of the two appraisers with respect to the third appraiser shall lection of a third appraiser, the purchase price shall be equal ss Land, or portion thereof, as determined by any two of the ee appraisers cannot agree on the fair market value of the the three appraisals, after eliminating any appraisal if it is 10% middle appraisal, shall be the fair market value of the Option ither party fails to appoint an appraiser or the appraisers cannot iser within thirty (30) days of the demand by any party, then on ounty District Court, such appraiser shall be appointed by a Hennepin All the information provided to the appraisers shall be the same. All appraisers shall be MAl members of the American Institute of Real Estate Appraisers with not less than ten (10) years of experience in appraisal of land for development in Hennepin County, Minnesota and be devoting substantially all of their time to professional appraisal work at the time of the 2 (0----1, appointment and be in all respects impartial and disinterested. The Optionor and the Optionee shall pay their respective appraisers and each shall pay one-half of the cost of the third appraiser. The Purchase Price shall be payable to Optionor by wire transfer of immediately available Federal funds on or before the Date of Closing (as defined below). Notwithstanding the foregoing to the contrary, the Purchase Price for the Excess Land legally described as follows shall be One Dollar ($1) consi eration of the loss of value Optionee incurred as a result of the loss of its property ntersection, as defined in the Intersection Agreement, and its relocation east . n: Street Address 1620 West 66th Street 1614 West 66th Street 4.0 Exercise of Option. (A) Optionee shall exercise th Period, the Option Exercise Notice art Optionee acknowledge and agree tha portion of the Excess Land, the Opti remaining Excess Land and Optione Excess Land at any time prior en nor, within the Option (B) If Optionee Period in accordance hereunder as to the Exces and neithe nor Op under t . itle. Su to exercise of the Option and Section 10.0 below, greement is incorporated into this Section 5.0 as if fully set s its Option, then at Closing it shall reimburse Optionor for prepared by the City to delineate the portion of the Excess ee. 6. Sections 3.6 fully set forth her ess Land' Government A rovals. Subject Section 10.0 below, evelopment Agreement are incorporated into this Section 6.0 as if 7.0 Taxes and Special Assessments: Other Costs. Subject to Section 10.0 below, Section 3.9 (except for the last sentence) and Section 3.10 of the Development Agreement are incorporated into this Section 7.0 as if fully set forth herein. At Closing, Optionor shall pay (i) all deferred real estate taxes, if any, and all special assessments levied or pending against the Excess Land as of the Date of Closing (as defined below) and (ii) all special assessments, and 3 lD -ll< any interest thereon, that become payable by reason of the conveyance of the Excess Land to Optionee. 8.0 Excess Land Conveved As-Is. Subject to Section 10.0 below, Section 3.11 of the Development Agreement is incorporated into this Section 8.0 as if fully set forth herein. 9.0 Closing Documents. Subject to Sect Development Agreement (except for Section 9.0 as if fully set forth herein. below, Section 3.14 of the . s incorporated into this 10.0 Defined Terms. In those secti into Sections 5.0 through 9.0 above, replace "Optionee"; (c) "HRA Property" and "Develo Land"; (d) "Closing Date" with "Date of Closing Excess Land"; and (f) "HRA Documents" wit Section 3.7 of the Development Agreement, as inc phrase "the construction and operation improvements contemplated pursuant to t development of the Option Exercised E sections of the Development Agreem also defined in this Agreement, such t 11.0 e the full responsibility and the entire injuries of a whatsoever to the Excess Land, to any otherwise, and to any other property from and connected directly from the negligence of Optionee, its agents or . on but prior to the Date of Closing, all or a portion tion in eminent domain or a proposed taking by a r temp or permanent, Optionor shall immediately give 1 have the right to terminate this Agreement by giving notice ys after Optionor's notice. If Optionee shall fail to give ies shall proceed to closing and Optionor shall assign to receive any award from such proceedings. ( to the Date of Closing, Optionee and its employees, consultants and contracto nee's sole cost and expense, be entitled to enter upon and examine, inspect, survey a e Excess Land and each and every part thereof, all without cost, expense or liability tionor. Optionee agrees to indemnify and defend Optionor from any loss, liens or liability resulting solely from such entry, and shall pay when due all bills for examinations, inspections, surveys (subject to Section 5.0 above) and tests performed at or with respect to the Excess Land. Optionor agrees to cooperate (at no expense to Optionor and without consenting to any irrevocable changes in zoning or other regulatory status of the Excess Land prior to the Date of Closing) in Optionee's attempt to obtain all governmental approvals necessary in Optionee's judgment to make that use of the Excess Land which Optionee intends. 4 (0 -[Cf (C) During the term of this Agreement ("Executory Period"), Optionor shall maintain the Excess Land in the ordinary course of business in accordance with prudent, reasonable business standards, including the maintenance of adequate liability insurance in connection with the Excess Land and shall execute no contracts, leases or other agreements regarding the Excess Land during the Executory Period that are not terminable on or before the Date of Closing without the prior written consent of tionee which may be withheld in Optionee's sole discretion. (D) Promptly after acquiring any E Optionor shall deliver to Optionee copies of th Documents"), to the extent that such docum reasonably available to Optionor: (i) any agreements that, to the best of Optionor's knowle the contracts and agreements pertaining to the E Closing; (iii) any notices of any statute, ordinan Land; (iv) existing soil tests, environment engineering reports and assessments an Excess Land; (v) any leases affecting t Excess Land. warrants to Optionee that in action which will result in any real r payable to any party. Optionee n, Optionee has not taken any action roker's fee, fee or other fee being due or payable to ectively agree to indemnify, defend and hold harmless the ims by any real estate broker or agent for fees or rvices provided to the indemnifying party. nor hereby represents and warrants to Optionee as eived any notice nor is it aware of any pending action to take eu thereof all or any portion of the Excess Land. full, right, power and authority to enter into this Agreement and isions hereof. (C) Optio IS not a "foreign person," "foreign partnership," "foreign trust" or "foreign estate" as those terms are defined in Section 1445 of the Internal Revenue Code. (D) To the best knowledge of Optionor's City Manager, Community Development Director and Community Development Manager, and except as may be set forth in any environmental reports provided by Optionor to Optionee prior to the end of the Option Period, no toxic or hazardous substances or wastes, pollutants or contaminants (including, without 5 (0 -~o limitation, asbestos, urea formaldehyde, the group of organic compounds known as polychlorinated biphenyls, petroleum products including gasoline, fuel oil, crude oil and various constituents of such products, and any hazardous substance as defined in the Comprehensive Environmental Response, Compensation and Liability Act of 1980 ("CERCLA"), 42 D.S.C. ~ 9601-9657, as amended) have been generated, treated, stored, released or disposed of, or otherwise placed, deposited in or located on any portion of the Excess Land in violation of any environmental laws, nor has any activity been undertaken an rtion of the Excess Land that would cause or contribute to (i) any portion of the Excess me a treatment, storage or disposal facility within the meaning of, or otherwis in f the Excess Land within the ambit of, the Resource Conservation and Re CRA"), 42 D.S.C. ~ 6901 et seq., or any similar state law or local ordin ed reI ase of toxic or hazardous wastes or substances, pollutants or cess Land within the meaning of, or otherwise bring any e ambit of, CERCLA, or any similar state law or local or iii) the disc pollutants or effluents into any water source or system, the dr of any waters or the discharge into the air of any emissions, that would require e Federal Water Pollution Control Act, 33 D.S.C. ~ 1251 et seq., or th ~ 7401 et seq., or any similar state law or local ordinance. To t , and except as may be set forth in any environmental report tionor to ptionee pursuant to this Agreement, there are no substances 0 portion of the Excess Land that support a claim or cause of action :D der RCRA, CERCLA or any other federal, state or local env lations, ordinances or other environmental regulatory requi ts. (E) To the best tanks, wells or individual ove ground or underground storage ocated on the Excess Land. knowledge, no portion of the Excess Land is located r "flood prone area" under any statute, regulation, not subject to any lease or sublease, nor are there any tenants other than as reflected in the copies of leases delivered to ) above. ptionor's knowledge, no unrecorded condition, restriction, hich adversely affects the Excess Land, the use thereof or the (1) To th t of Optionor's knowledge, the Excess Land is free from any use or occupancy restrictions, except those imposed by zoning laws and regulations and no part is dedicated or, to the best of Optionor's knowledge, has been used as a cemetery or burial ground. (J) To the best of Optionor's knowledge, no fact or condition exists which would result in the termination of access from the Excess Land to the streets and roads adjoining or 6 to ~ z. { situate on the Excess Land or to any existing or proposed sewer or other utility facilities servicing, adjoining or situated on the Excess Land. 14.0 Optionee's Warranties. Optionee hereby represents and warrants to Optionor as follows: (A) The Optionee has the power to enter into t the execution, delivery, and performance of this Agreeme (B) During the period of the Option any portion thereof, then only as to such port' warranties set forth in Section 13.0 hereof, D all applicable environment laws and regulation but is not limited to: Comprehensive Environme ("CERCLA"), 42 U.S.C. SS 9601 et seq. a Conservation and Recovery Act ("RCRA"), 42 amended, the Federal Water Pollution Contro amended, the Clean Water Act (33 U.S. Clean Air Act 42 U.S.C. S 7401 et seq. or hereafter amended, the Clean Air amended, the Toxic Substances Con amended; the Hazardous Materials hereafter amended; the Mi Section 115B.02 et seq.) ("M and any other local, state a evelopment Property or , s re r sentations and peets with all include, Liability Act fter amended, the Resource seq. as now or hereafter eq. as now or hereafter ereafter amended; the ct (33 U. . S 1317 et seq.), as now 12 et seq.), as now or hereafter et seq.), as now or hereafter .C. S 1801 et seq.), as now or e and Liability Act (Minn. Stat. mended and regulations thereunder, , that govern and/or remedy of contamination of the ironment from released, spilled, deposited contamination; eration, transport, treatment, removal or recovery of ubstances, including any and all building materials. NotWl oregoing to the contrary, Developer shall not be responsible to comply with all a nvironmental Laws and regulations as hereinbefore provided, if the condition requiring s ompliance constitutes a breach by the City of its representations and warranties pursuant to Section 13.0. 15.0 Conditions Precedent to Optionee's Obligations. Notwithstanding the exercise by Optionee of the Option in accordance with the terms of this Agreement, the obligation of Optionee to purchase the Option Exercised Excess Land shall be subject to the following conditions: 7 (o..-~'- (A) Optionee, in its sole discretion, shall be satisfied with the condition of the Option Exercised Excess Land as provided in Section 6.0 above. (B) Optionee shall have obtained its governmental approvals and consents as provided in Section 6.0 above. (C) The representations and warranties made correct as of the Date of Closing with the same fo been made on the Date of Closing. . n this Agreement shall be those representations had (D) There shall have been no cha Excess Land as approved by Optionee pursuant Exercised (E) The Option Exercised Excess La result of a release of hazardous or toxic substa casualty or act of God, or act of a public ene (F) No suit, zoning chan challenging the transactions contempl Optionee to purchase or develop the Excess Land after the Date of Closin of Closing. investig . n or other proceeding or which might affect the right of d or use the Option Exercised d or instituted prior to the Date (G) Optionor sh Optionor under this Agre igations required to be performed by this Agreement. satisfied on the Date of Closing, Optionee shall have fthe Option and Optionee's obligation to close the of the Option by written notice given to Optionor g. Upo ination of its exercise of the Option by Optionee hall have any further obligation or liability under Optionee's Notwithstanding the termination of its exercise of the Option such portion of the Excess Land shall continue to be subject riod. All the foregoing contingencies are specifically for the ee shall have the right to waive any contingency by written 16.0 on Optionor's receipt of the Notice, given in accordance with this Agreement, Optiono 1 promptly contact Optionee and make arrangements with Optionee for a closing through escrow with the Title Company (the "Closing"). In the event the parties are unable to agree upon a date and time of Closing, the Closing shall take place at 10:00 a.m. on a date falling ninety (90) days after the exercise of the Option (the "Date of Closing"). In the event that said date falls on a Saturday, Sunday or legal holiday, the Date of Closing shall be the next succeeding business day. 8 l t) -- tl-3> 17.0 Limitations on Right to Purchase by Option. Optionee's right to purchase any portion of the Excess Land pursuant to the Option is not applicable to the following circumstances during the periods indicated: (a) as to the portion of the Excess Land included in a third party purchase offer that Optionor is in good faith considering and for a period of not more than thirty (30) days after Optionor's receipt of such purchas fer; or (b) as to the portion of the Exce purposes; provided that r develops for municipal (1) if the developm liquor store for a portion of the and 16, Block 1, Cedar Sunrise A build a municipal liquor store 0 Council within two and one-half ( 1 the construction of the muni . years of the date of this Ag (2) if the d road from the locatio Agreement over a 0 to the construction of an access store as of the date of this which is legally described as (the "Access Road to construct an access road over a assed by the City Council within two rs after the this Agreement and the municipal liquor a portion of the Access Road Area is constructed within this Agreement (the "Access Road"); or icipal purpose development by the City, the City is pass fore the Option is exercised and the construction of ct consistent with the development plans commences by the one-half (2'li) years from the date of this Agreement and (ii) hty (180) days after such City Council resolution. NotWl applies, t earlier of the years after the da 17.0 does not apply t f paragraph 2 to the contrary, if subparagraph (b)(2) above e Access Road Area does not expire until ten (10) years after the ction of the Access Road is completed or a date which is four (4) Agreement. Notwithstanding the foregoing to the contrary, Section property described in the last paragraph of Section 3.0. 18.0 Right of First Refusal. Optionor hereby grants to Optionee the exclusive right of first refusal (the "Right of First Refusal") as hereinafter provided for the period beginning on the date of this Agreement (the "Effective Date") and ending at 11 :59 p.m. Central Time on the date that is ten (10) years after the Effective Date (the "Right of First Refusal Period"). If Optionor accepts a bona fide offer from a third party (a "Purchase Offer") to purchase all or 9 ((9 - d-.4 part of the Excess Land (such portion of the Excess Land is for the purposes of this Section 18.0 hereinafter referred to as the "Property"), it shall be subject to Optionee having the Right of First Refusal to elect, within thirty (30) days of written notice from Optionor which includes a copy of the Purchase Offer signed on behalf of Optionor and the third party, to purchase the Property at the same price and terms as contained in the Purchase Offer. Optionee shall exercise its Right of First Refusal by executing a purchase agreement upon the same terms and conditions as the Purchase Offer, except as otherwise provided in, an delivering the same to the Optionor within such 30-day period (the "Optionee's P ment"). Upon receipt of the Optionee's Purchase Agreement, Optionor s d e same and immediately return a duly executed copy to the Optionee. If larger tract being sold by Optionor, Optionee shall have the right to pur a p of such larger tract based on the lesser of (i) the fair market Optionee, which shall be determined using the same me , or (ii) the per-square- foot land cost pursuant to the terms nee elects to purchase the Property, the Closing shall occur e Purchase ffer, unless such Closing Date is a specified date, in which event, xtended by the number of days from the date of the Purchase Offer to urchase Agreement. If Optionee does not elect to purchase the the right to sell the Property on the terms and conditions co ase Offi d such sale shall be free and clear of all rights of Optionee rovided. Notwithstanding the foregoing, if Optionor does not sell Purchase Offer within six (6) months after a copy thereof is deliver hall continue to have a right of first refusal to purchase the Pro 0 rein. Notwithstanding the Excess Land legally desc value Optionee incurred relocation . iginal Lot 1, Block 5 Iverson's 3rd Addition Lot 2, Block 5 Iverson's 3rd Addition tion and Ri ht of First Refusal. At Optionee's option, Optio te a memorandum of this Agreement in the form of Exhibit D attached randum shall be recorded against the Excess Land. If additional Excess Land Exhibit B is amended as provided in paragraph 1.0 hereof after the Memorandum 0 t has been entered into, then at Optionee's Option, Optionor and Optionee shall execu emorandum of this Agreement in the form of Exhibit D for all of such additional Excess Land and such Memorandum shall be recorded against such additional Excess Land. 20.0 Successors and Assigns. This Agreement shall be binding upon and shall inure to the benefit of Optionor and Optionee, and their respective successors and assigns. 10 (O~.~S 21.0 Time is of the Essence. Time is and shall at all times be and remain of the essence of this Agreement. 22.0 Notices. Any notice required or permitted hereunder shall be in writing and shall be given by (A) personal delivery to an officer or manager of Optionor or Optionee, or (B) depositing in the United States mail, certified mail, postage prepaid, return receipt requested, or (C) depositing with a nationally-recognized commerci overni ht courier service such as Federal Express or UPS, or (D) transmitting by confirm llowed by mailed notice, addressed: If to the Optionee, at: Ryan Companies US, Inc. 50 South Tenth Street, Suite 300 Minneapolis, Minnesota 55403-2 Attention: Bill McHale Facsimile No.: (612) 492-333 with a copy to: son, Esq. aven, Chartered Plaza 200 Sixth Street Minneapolis, MN 55402 or, in either case, such other address or facsimile number as Optionor or Optionee, as the case may be, may from time to time designate by written notice to the other party hereto. Notices shall be deemed effective on the earlier of the date of receipt or the date of deposit in the United States Mail or with a nationally-recognized commercial overnight courier service, as aforesaid; 11 {O~-~<O provided, however, that if notice is given by deposit, that the time for response to any notice by the other party shall commence to run two (2) business days after any such deposit in the United States mail and one (1) business day after any such deposit with a nationally-recognized commercial overnight courier service. 23.0 Survival of Covenants. If Optionee exercises the Option, all the terms, conditions, representations, covenants and agreements co . ned h rein shall survive the Closing hereunder and shall thereafter continue in full force and e 24.0 Entire Agreement. This Agree parties regarding the subject matter contemplat agreement (including the Development Agree matter. This Agreement may be amended, mo by the parties. ire understanding of the rio oral or written ch subj ect ent signed 25.0 Headings. The headings of the par of reference only and do not form a part here interpreting or construing the text of this r used in this Agreement shall be gular number shall be held to fWlse. 27.0 Counterparts. each of which shall be dee but one and the same agr ted in any number of counterparts, which taken together shall constitute shall be governed by and construed III 12 lO -.17 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the day and year first above written. BUYER: RYAN COMPANIES US, INC. SELLER: 13 to -~~ EXHIBIT A TO OPTION AND RIGHT OF FIRST REFUSAL AGREEMENT LEGAL DESCRIPTION OF THE DEVE Address 6600 1 ih Avenue 6601 1 7th Avenue 6609 1 ih Avenue 6615 17th Avenue 6621 1 ih Avenue 6601 16th Avenue 1614 66th Street 1620 66th Street 6627 1 ih Avenue 6633 17th Avenue (O-i~ EXHIBIT B TO OPTION AND RIGHT OF FIRST REFUSAL AGREEMENT LEGAL DESCRIPTION OF THE PID 26-028-24-41-0005 26-028-24-41-0079 26-028-24-41-0078 26-028-24-41-0077 26-028- 24-41-007 6 26-028-24-41-0 26-028-24-14- 26-028-24-14- 26-02 -0075 26- 1-0074 ddition edar Sunrise Addition Iverson's 3rd Addition Iverson's 3rd Addition Wexlers Addition Wexlers Addition (0 --:50 EXHIBIT C TO OPTION AND RIGHT OF FIRST REFUSAL AGREEMENT Option Exercise Notice City of Richfield RE: Notice of Exer Option Agreement date Ladies and Gentlemen: In Agree the de the above-captioned Option Agreement (the "Option ption (as defined in the Option Agreement) under e Option on the portion of the Excess Land (as n Schedule A attached hereto, a time for the closing which, pursuant to the terms of the 'thin ninety (90) days after the date of this exercise of the ance with the terms of the Option Agreement. Sincerely yours, By: Its: (0 - 3' EXHIBIT D TO OPTION AND RIGHT OF FIRST REFUSAL AGREEMENT MEMORANDU AND RIGHT OF FIRST R THIS MEMORANDUM OF AGREEMENT (this "Memorandum 2006, by and between CITY OF RI State of Minnesota ("Optionor"), and ("Optionee"). A. Agreemen granted He :ve entered into a certain Option and Right of First Refusal 6 (the "Option Agreement"), whereby Optionor has first refusal to purchase certain real property in in Exhibit A attached hereto (the "Property"). give notice of the existence of the Option Agreement. PROVISIONS: f the sum of One and No/100 Dollar ($1.00) and other good eceipt of which is hereby acknowledged, the parties hereto agree 1. Property. and Optionee have entered into the Option Agreement regarding the 2. The Option Agreement provides Optionee with an option (the "Option") and a right of first refusal (the "Right of First Refusal") to purchase any or all of the Property. The Option and Right of First Refusal must be exercised, if at all, not later than 11 :59 p.m. Central Time on the date that is ten (10) years after the date of the Option Agreement. 1 f 0 - 5~ 3. This Memorandum has been executed and delivered by the parties for the purpose of recording and giving notice that the Option for the benefit of Optionee has been created between Optionor and Optionee in accordance with the terms and conditions of the Option Agreement. 4. The terms and conditions of the Option A ement are incorporated by reference into this Memorandum. 5. This Memorandum may be exe which shall be deemed to be an original but and the same agreement. IN WITNESS WHEREOF, Optionor a be duly executed as of the day and year first abov BUYER: SELLER: F RICHFIELD By: Its: 2 (0 -33 STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was acknowledged before me this _ day of 200_, by , the of Ryan Companies US, Inc., a Minnesota corporation, on behalf of the corporation. STATE OF MINNESOTA ) ) ss. COUNTY OF ) The foregoing instrument was ac 200_, by an , respectively, 0 of the State of Minnesota, on behalf 0 3 (0 - 31- RYAN UTILITY RELOCATION WORK . Description of what utilities are to be relocated - existing location/new location. . Commencement date for the work. . Completion date for the work. . Plans and specification, prep . Access agreement from the . . All work at Ryan's cost and e obligations under the esc performing the work a agreements. In suc pursuant to the te private developme or City fails to satisfy its rcises its right to stop ment and any ancillary be paid r its work by the HRA, first amendment to contract for AGENDA SECTION: AGENDA ITEM # REpORT # RESOLUTIONS 11 137 ~ STAFF REpORT RICHFIELD I I CITY COUNCIL MEETING JUNE 27,2006 REpORT PREPARED By: CHRISTINE COSTELLO, COMMUNITY DEVELOPMENT SPECIALIST NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of an amendment to the Business Subsidy Agreement between the Richfield Housing and Redevelopment Authority in and for the City of Richfield and Ryan Companies US, Inc. for the Cedar Point ro"ect I. RECOMMENDED ACTION: By Motion: Adopt the attached resolution approving the amended Business Subsidy Agreement between the Richfield Housing and Redevelopment Authority in and for the City of Richfield and Ryan Com anies US, Inc. I II. BACKGROUND I The Housing and Redevelopment Authority (HRA) approved the Business Subsidy Agreement (Agreement) on November 11, 2005. The City Council approved the Agreement on December 12, 2005. The Agreement set the amount of subsidy at $6,889,750. It is proposed to amend the Agreement for correction of typographical errors and language clarification. The amount of public assistance is not being changed. The proposed changes to the Agreement clarifies the performance standards in the Remedies section of the Agreement. See pages 2 and 3 Section 1 (c) 4., 5. and 6. 062706_Amended BusSubsidy Cedar Point of the attached Agreement. It is the proration of the reduction in the business subsidy that is the clarification. The language clarification in the performance standards does not change the previously approved agreements between the HRA and Ryan for performance standards. The HRA approved the amended Business Subsidy Agreement on May 30,2006. This item was originally scheduled for the June 13th City Council meeting but was removed from that agenda, it is now before the City Council for approval. I III. BASIS OF RECOMMENDATION I I A. POLICY I . The review of the HRA's Agreement by the City Council is required. . The Agreement has been prepared to comply with the established criteria. . The HRA held a public hearing and approved the Agreement with the Developer on May 30,2006. . A public hearing is not required by the City Council. I B. CRITICAL ISSUES I . Staff has worked closely with financial analysts at Ehlers and Associates, Inc. in order to conclude that private redevelopment will not occur without public financing. I C. FINANCIAL I . The public funding identified in the attached Business Subsidy Agreement has been previously approved by the HRA and City Council as noted above in 2005 and no change in that amount is proposed. I D. LEGAL I . Legal Counsel has reviewed the amendments to the Business Subsidy Agreement and the attached resolution. I IV. ALTERNATIVE RECOMMENDATION(S) I . Do not approve the amendments to the Business Subsidy Agreement. . Defer approval of the amendments to the Business Subsidy Agreement to a later date. I V. ATTACHMENTS . Resolution. . Business Subsidy Agreement with Ryan Companies US, Inc. I VI. PRINCIPAL PARTIES EXPECTED AT MEETING I . A representative of Ryan Companies US, Inc. ( (-f RESOLUTION NO. RESOLUTION APPROVING AN AMENDMENT TO THE BUSINESS SUBSIDY AGREEMENT BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD AND RYAN COMPANIES US, INC. BE IT RESOLVED By the City of Richfield, Minnesota, (the "City") as follows: Section 1. Recitals. 1.01. On or about July 27, 2005, the Housing and Redevelopment Authority in and for the City of Richfield (the "HRA") and Ryan Companies US, Inc. (the "Redeveloper") entered into that certain document entitled, Contract for Private Redevelopment (the "Contract"). 1.02. Section 4.5 of the Agreement calls for the parties to enter into a separate Business Subsidy Agreement as required by the Business Subsidy Act, setting the level of assistance that is treated as a business subsidy under the Business Subsidy Act, (Minnesota Statutes, sections 116J.993 to 116J.995). 1.03. On or about May 30,2006, the HRA conducted a hearing regarding the amendment to the business subsidy agreement. 1.04. Following such hearing the HRA approved the amended business subsidy agreement and referred the matter to the City Council for action as required by law. 1.05 The City Council after consideration of the matter and hearing the report of staff has determined that the execution thereof by the HRA and the performance of the HRA's obligations thereunder are in the best interest of the City and its residents. Section 2. City Approval; Further ProceedinQs. 2.01. The City approves the amended Agreement subject to the changes shown thereon. 2.02. The Mayor and the City Manager are authorized to take all steps and do all things necessary to carry into effect the provisions of this resolution. Approved by the City Council of the City of Richfield, Minnesota this 27th day of June, 2006. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk /1- 7- BUSINESS SUBSIDY AGREEMENT THIS AGREEMENT, made and entered into this _day of , 2006 by and between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a Minnesota public body corporate and politic (the "HRA"), and RYAN COMPANIES US, INC., a Minnesota corporation (the "Developer"). Section 1 Business Subsidy Agreement. The provisions of this Agreement constitute the "business subsidy agreement" for the purposes of the Business Subsidy Act. (a) General Terms. The parties agree and represent to each other as follows: (1) For the purpose of this Agreement, the terms used in this Agreement which are defined in the Contract for Private Development between the parties and dated as of July 27, 2005 (the "Contract") shall have the meanings given them in the Contract. (2) The subsidy provided to the Developer consists of (i) the sum of financing provided by the Authority and City in the form of the Note, and (ii) conveyance of a portion of the HRA Property by the Authority to Developer for less than fair market value. Each disbursement, payment or waiver described in such Article represents a forgivable loan that is repayable by the Developer in accordance with this Section. As of the date of this Agreement, the aggregate business subsidy cannot be estimated with any degree of certainty, however, in no event will the total amount of the business subsidy payable under the Contract exceed $6,889,750 (in present value terms). (3) The public purposes of the subsidy are to redevelop an area that has been signifioantly impacted, and will continue to be impacted by airport operations on land adjacent to the Development Property, establish a mixed commercial development that is designed to be compatible with the impacts, and which will serve as a buffer to land uses to the West of the Development Property and to implement the City's land use goals identified in the comprehensive plan. (4) The goals for the subsidy are: to secure completion of the Minimum Improvements of the Development and the related Public Improvements by the Completion Date for that Phase, and to operate the Minimum Improvements for at least five years as described in clause (6) below. (5) If the goals described in clause (4) are not met, the Developer or its successors and assigns must make the payments to the Authority described in Section l(c). (6) The subsidy is needed because the cost of land acquisition, demolition and site clearance, does not make the development of the Minimum Improvements financially feasible without public assistance, all as determined by the Authority and City. 1 f{-3 (7) The Developer and its successors and assigns must continue operation of the Minimum Improvements for at least five years after the date of issuance of the Certificate of Completion for the portion of the Minimum Improvements covered by the certification.. For the purpose of this Section, space will be considered to be maintained in operation if it is leased, or available for lease, to any person or entity, or occupied by Developer for use in its trade or business. (8) The Developer does not have a parent corporation. (9) The Developer has not received, and does not expect to receive, financial assistance from any other "grantor" as defined in the Business Subsidy Act, in connection with the Development Property or the Minimum Improvements. (b) Job and Wage Goals. In accordance with Section 116J.994, subdivision 4, the Authority has determined after a public hearing that the creation or retention of jobs is not the goal of this redevelopment effort. Accordingly, the wage and job goals are set at zero. (c) Remedies. 1. If the Developer fails to commence construction of the Minimum hnprovements within the time provided in the Contract, the Developer shall repay the Authority the full amount of the business subsidy as provided in subparagraph (a)(2) above.. 2. If the Developer commences construction of the Minimum Improvements within the time provided in Section 5.3 of the Contract, the amount of the business subsidy will be reduced to $2,500,000. 3. If the Developer commences construction of the Minimum Improvements as provided in Section 5.3 of the Contract, but fails to complete construction within the time period provided in the Contract, the Developer shall repay the Authority $2,500,000. 4. If the failure of the Developer under either subparagraph 1,2 or 3 above relates only to the Target Store, or only to the Home Depot Store, then the amount of repayment due under such subparagraphs will be equal to 58.09% if the failure relates to the Target Store and 41.91 % if the failure relates to the Home Depot Store multiplied by the full amount of the Business Subsidy due under (c) 1, 2 or 3, as the case may be. 5. If the Developer commences and completes construction of the Minimum hnprovements within the times provided in the Contract, the amount of the Business Subsidy will be reduced to $1,000,000, which is allocated as follows: $580,900 to the Target Store and $419,100 to the Home Depot Store. If only the Target Store is commenced and completed within the times provided in the Contract, then the amount of the Business Subsidy under this Agreement relating to the Target Store shall be reduced to $580,900. If only the Home Depot Store is commenced and completed within the times provided in the Contract, then the amount of the Business Subsidy under this Agreement relating to the Home Depot Store shall be reduced to $419,100. 2 J J- i 6. If the Developer commences and completes construction of the Minimum Improvements within the times provided in the Contract, but the Target Store and/or the Home Depot Store are not operated for at least five years after the date of issuance of its Certificate of Completion, then the Developer shall repay the Authority a portion of the Business Subsidy determined as follows: (i) if such failure to operate for such five years relates to the Target Store, then the amount that shall be repaid to the Authority shall equal $580,900 multiplied by the number of days remaining in such five year period and divided by 1,825 which represents the number of days in the five year period and (ii) if such failure to operate for such five years relates to the Home Depot Store, then the amount that shall be repaid to the Authority shall equal $419,100 multiplied by the number of days remaining in such five year period and divided by 1,825 which represents the number of days in the five year period. Any demand for repayment must be in writing and is subject to the cure provisions of the Contract. Payment shall also include interest at the implicit price deflator as defined in Minnesota Statutes, Section 275.50, subd. 2, accrued from the Closing Date to the date of payment. Nothing in this Section shall be construed to limit the Authority's remedies under Article X of the Contract in the event of a violation of any other provision of the Contract, but the remedies set forth in this paragraph (c) are the exclusive remedies for failure to comply with the terms of this Agreement. In addition to the exclusive remedy described in this Section, the Developer agrees and understands that it may not a receive a business subsidy from the Authority or any grantor (as defined in the Business Subsidy Act) for a period of five years from the date of the failure or until the Developer satisfies its repayment obligation under this Section, whichever occurs first. (d) Reports. The Developer must submit to the Authority a written report regarding business subsidy goals and results by no later than March 1 of each year, commencing March 1, 200_ and continuing until the later of (i) the date the goals stated Section l(a)(4) are met; (ii) 30 days after expiration of the five-year period described in Section l(a)(7); or (iii) if the goals are not met, the date the subsidy is repaid in accordance with Section l(c). The report must comply with Section 116J.994, subdivision 7 of the Business Subsidy Act. The Authority will provide information to the Developer regarding the required forms. If the Developer fails to timely file any report required under this Section, the Authority will mail by certified mail return receipt requested to the Developer at the address set forth in Section 11.7 of the Contract a warning within one week after the required filing date. If, after 30 days after receipt of the warning, the Developer fails to provide a report, the Developer must pay to the Authority a penalty of $100 for each subsequent day until the report is filed. Failure by the Authority to deliver a timely warning notice will not relieve the :Qeveloper's obligation to pay a penalty within 30 days after receipt of a notice to pay. The maximum aggregate penalty payable under this Section is $1,000. 3 J(-5 IN WITNESS WHEREOF, the HRA and Developer have caused this Agreement to be duly executed by their duly authorized representatives as of the date first above written. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By Its Chairperson By Its Executive Director 4 1(--& STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _ day of , 2006 by Susanne Sandahl, the Chair of the Housing and Development Authority in and for the City of Richfield, Minnesota, on behalf of the Authority. Notary Public STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _ day of ,2006 by Steve Devich, the Executive Director of the Housing and Development Authority in and for the City of Richfield, Minnesota, on behalf of the Authority. Notary Public RYAN COMPANIES US, INe. By Its STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _ day of , 2006 by , the of Ryan Companies US, Inc., a Minnesota corporation, on behalf of the corporation. Notary Public 403089L3.DOC 062006 5 AGENDA SECTION: AGENDA ITEM # REpORT # RESOLUTIONS 12 138 .... STAFF REpORT RICHFIELD CITY COUNCIL MEETING JUNE 27, 2006 REpORT PREPARED By: CHRISTINE COSTELLO, COMMUNITY DEVELOPMENT SPECIALIST NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: IE( uI REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Business Subsidy Agreement between the Richfield Housing and Redevelopment Authority in and for the City of Richfield and Target Corporation and Home Depot assigning to Target and Home Depot portions thereof of the original Business Subsidy Agreement for the Cedar Point Commons ro"ect. I. RECOMMENDED ACTION: By Motion: 1. Approve the attached resolution approving a Business Subsidy Agreement between the Richfield Housing and Redevelopment Authority in and for the City of Richfield and Target Corporation assigning to Target portions thereof the original Business Subsidy Agreement for the Cedar Point Commons project. 2. Approve the attached resolution approving a Business Subsidy Agreement between the Richfield Housing and Redevelopment Authority in and for the City of Richfield and Home Depot assigning to Home Depot portions thereof the original Business Subsidy A reement for the Cedar Point Commons ro.ect. 062706 Second amendment BusSubsidy Cedar Point I II. BACKGROUND I The Housing and Redevelopment Authority (HRA) approved the Business Subsidy Agreement (Agreement) on November 11, 2005. The City Council approved the Agreement on December 12, 2005. The HRA approved an amendment to the Agreement for the correction of typographical errors and language clarification on May 30, 2006. The City Council will consider this amendment at the June 27th meeting. The current amendment request clarifies the tasks to be completed between Ryan Companies US, Inc., (Ryan) and the Target Corporation (Target), and Ryan and Home Depot. The current Agreement remains in effect until construction of the two buildings has been commenced; at which point the proposed assignment of the Agreements to Target and Home Depot becomes effective. The Contract for Private Development with the HRA defines minimum improvements as the construction and related site work of the SuperTarget and Home Depot building at Cedar Point Commons. . The changes to the Agreement does not increase the total amount of public assistance, which has been previously approved by the HRA as part of the Contract for Private Redevelopment with Ryan. The subsidy, as identified in the Agreement, is not to exceed $6,889,750. It is also consistent with a resolution adopted by the City Council on May 24, 2005 agreeing to provide the tax abatement. I III. BASIS OF RECOMMENDATION I I A. POLICY I . The review of the HRA's Agreement by the City Council is required. · The Agreement has been prepared to comply with the established criteria. . A public hearing is not required by the City Council. I B. CRITICAL ISSUES I · The proposed public funding for the Ryan's redevelopment of the Cedar Point Commons area cannot proceed without the approval of the proposed Business Subsidy Agreements. I C. FINANCIAL I . The public funding identified in the attached Business Subsidy Agreements has been previously approved by the HRA and City Council and no change in that amount is proposed. · The public funding identified in the attached Business Subsidy Agreement is specifically for Target and Home Depot's minimum improvements only. I D. LEGAL I · Legal counsel has reviewed the proposed Business Subsidy Agreements and the attached resolutions. I IV. ALTERNATNE RECOMMENDATION(S) I . Do not approve the proposed Business Subsidy Agreements. . Defer approval of the proposed Business Subsidy Agreements to a later date. I V. ATTACHMENTS . Resolution with Target Corporation . Resolution with Home Depot . Business Subsidy Agreement with Target Corporation . Business Subsidy Agreement with Home Depot I VI. PRINCIPAL PARTIES EXPECTED AT MEETING I . A representative of Ryan Companies US, Inc. I~-I RESOLUTION NO. RESOLUTION APPROVING A BUSINESS SUBSIDY AGREEMENT BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD AND CEDAR POINT-TARGET CORPORATION BE IT RESOLVED By the City of Richfield, Minnesota, (the "City") as follows: Section 1. Recitals. 1.01. On or about July 27, 2005, the Housing and Redevelopment Authority in and for the City of Richfield (the "HRA") and Ryan Companies US, Inc. (the "Redeveloper") entered into that certain document entitled, Contract for Private Redevelopment (the "Contract"). 1.02. On or about May 30, 2006 the HRA approved a Business Subsidy Agreement with the Developer (the "Basic Agreement"). 1.03. On or about June 26,2006 the HRA approved an Business Subsidy Agreement (the "Assignment Agreement") assigning a part of the Basic Agreement to Target Corporation. 1.04. Following such approval, the HRA has revered the matter to the City Council for action as required by law. 1.05 The City Council has reviewed the proposed Assignment Agreement between the HRA and Target Corporation, and Target Corporation has received the recommendation of staff. 1.06 The City Council has determined that the Assignment Agreement neither changes any essential provision of the Basic Agreement, nor increases the amount of the business subsidy to be provided. 1.07 The City Council after consideration of the matter and hearing the report of staff has determined that the execution thereof by the HRA and the performance of the HRA's obligations thereunder are in the best interest of the City and its residents. Section 2. City Approval: Further ProceedinQs. 2.01. The City approves the Assignment Agreement subject to the changes shown thereon. 2.02. The Mayor and the City Manager are authorized to take all steps and do all things necessary to carry into effect the provisions of this resolution. Approved by the City Council of the City of Richfield, Minnesota this 27th day of June, 2006. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk I 2- "2- RESOLUTION NO. RESOLUTION APPROVING A BUSINESS SUBSIDY AGREEMENT BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD AND CEDAR POINT-HOME DEPOT BE IT RESOLVED By the City of Richfield, Minnesota, (the "City") as follows: Section 1. Recitals. 1.01. On or about July 27, 2005, the Housing and Redevelopment Authority in and for the City of Richfield (the "HRA") and Ryan Companies US, Inc. (the "Redeveloper") entered into that certain document entitled, Contract for Private Redevelopment (the "Contract"). 1.03. On or about May 30, 2006 the HRA approved a Business Subsidy Agreement with the Developer (the "Basic Agreement"). 1.03. On or about June 26, 2006 the HRA approved an Business Subsidy Agreement (the "Assignment Agreement") assigning a part of the Basic Agreement to Home Depot. 1.04. Following such approval, the HRA has revered the matter to the City Council for action as required by law. 1.05 The City Council has reviewed the proposed Assignment Agreement between the HRA and Home Depot, and Home Depot has received the recommendation of staff. 1.06 The City Council has determined that the Assignment Agreement neither changes any essential provision of the Basic Agreement, nor increases the amount of the business subsidy to be provided. 1.07 The City Council after consideration of the matter and hearing the report of staff has determined that the execution thereof by the HRA and the performance of the HRA's obligations thereunder are in the best interest of the City and its residents. Section 2. City Approval; Further ProceedinQs. 2.01. The City approves the Assignment Agreement subject to the changes shown thereon. 2.03. The Mayor and the City Manager are authorized to take all steps and do all things necessary to carry into effect the provisions of this resolution. Approved by the City Council of the City of Richfield, Minnesota this 27th day of June, 2006. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk ::Larget J ';;l-3 062006 BUSINESS SUBSIDY AGREEMENT THIS AGREEMENT, made and entered into this _day of , 2006 by and between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a Minnesota public body corporate and politic (the "HRA"), and TARGET CORPORATION, a Minnesota corporation (the "Target"). 2. Business Subsidy Agreement. The provisions of this Agreement constitute the "business subsidy agreement" for the purposes of the Business Subsidy Act. 2.1 General Terms. The parties agree and represent to each other as follows: 2.1.1 For the purpose of this Agreement, the terms used in this Agreement which are defined in the Contract for Private Development between the parties and dated as of July 27, 2005 (the "Contract") shall have the meanings given them in the Contract. 2.1.2 The subsidy provided to Ryan Companies US, Inc. (the "Developer") consists of (i) the sum of financing provided by the Authority and City in the form of the Note, and (ii) conveyance of a portion of the HRA Property by the Authority to Developer for less than fair market value. Each disbursement, payment or waiver described in such Article represents a forgivable loan that is repayable by the Developer in accordance with this Section. As of the date of this Agreement, the aggregate business subsidy cannot be estimated with any degree of certainty, however, in no event will the total amount of the business subsidy payable under the Contract exceed $6,889,750 (in present value terms). 2.1.3 The public purposes of the subsidy are to redevelop an area that has been significantly impacted, and will continue to be impacted by airport operations on land adjacent to the Development Property, establish a mixed commercial development that is designed to be compatible with the impacts, and which will serve as a buffer to land uses to the West of the Development Property and to implement the City's land use goals identified in the comprehensive plan. 2.1.4 The goals for the subsidy are: to secure completion of the Minimum Improvements of the Development and the related Public Improvements by the Completion Date for that Phase, and to operate the Minimum Improvements for at least five years as described in clause (6) below. 2.1.5 If the goals described in clause (4) are not met, the Developer or its successors and assigns must make the payments to the Authority described in Section 1 (d). 2.1.6 The subsidy is needed because the cost ofland acquisition, demolition and site clearance, does not make the development of the Minimum Improvements financially feasible without public assistance, all as determined by the Authority and City. 1 I L-~ 2.1.7 The Developer and its successors and assigns must continue operation of the Minimum Improvements for at least five years after the date of issuance of the Certificate of Completion for the portion of the Minimum Improvements covered by the certification.. For the purpose of this Section, space will be considered to be maintained in operation if it is leased, or available for lease, to any person or entity, or occupied by Developer for use in its trade or business. 2.1.8 The Developer does not have a parent corporation. 2.1.9 The Developer has not received, and does not expect to receive, financial assistance from any other "grantor" as defined in the Business Subsidy Act, in connection with the Development Property or the Minimum Improvements. 2.1.10 The Developer has entered into a Business Subsidy Agreement with the BRA dated ,2006 (the "Developer Business Subsidy Agreement"). 2.1.11 The Developer has commenced construction of the Target Store portion of the Minimum Improvements (the "Target Minimum Improvements"). 2.2 Job and Wage Goals. In accordance with Section 116J.994, subdivision 4, the Authority has determined after a public hearing that the creation or retention of jobs is not the goal of this redevelopment effort. Accordingly, the wage and job goals are set at zero. 2.3 Assignment and Assumption. The Developer has assigned all of its obligations under the Ryan Business Subsidy Agreement relating to the Target Minimum Improvements as provided in this Agreement to Target and Target has agreed to undertake and perform the obligations set forth in this Agreement. 2.4 Remedies. (a) Since the Developer has commenced construction of the Target Minimum Improvements within the time provided in Section 5.3 of the Contract, the amount of the Business Subsidy allocated to the Target Minimum Improvements is reduced from a maximum of $4,002,255 to $1,452,250. (b) If the Developer fails to complete construction of the Target Minimum Improvements within the time period provided in Section 5.3 of the Contract, then Target shall repay the Authority the amount of $1,452,250. (c) If the Target Minimum Improvements are commenced and completed within the times provided in Section 5.3 of the Contract, the amount of the Business Subsidy allocated to the Target Minimum Improvements will be reduced from $1,452,250 to $580,900. (d) If the Target Minimum Improvements are commenced and completed within the times provided in Section 5.3 of the Contract, but the Target Store is not operated for at least five years after the date of issuance of its Certificate of Completion for the Target Store, then Target shall repay the Authority a portion of the Business 2 ( ~-5 . Subsidy allocated to the Target Minimum Improvements equal to $580,900 multiplied by the number of days remaining in such five year period and divided by 1,825 which represents the number of days in the five year period. Any demand for repayment must be in writing and is subject to the cure provisions of the Contract. Payment shall also include interest at the implicit price deflator as defined in Minnesota Statutes, Section 275.50, subd. 2, accrued from the Closing Date to the date of payment. The remedies set forth in this paragraph (d) are the exclusive remedies for failure to comply with the terms of this Agreement. In addition to the exclusive remedy described in this Section, Target agrees and understands that it may not a receive a business subsidy from the Authority or any grantor (as defined in the Business Subsidy Act) for a period offive years from the date ofthe failure or until Target satisfies its repayment obligation under this Section, whichever occurs first. 2.5 Reports. Target must submit to the Authority a written report regarding business subsidy goals and results by no later than March 1 of each year, commencing March I, 2008 and continuing until the later of (i) the date the goals stated Section l(a)(4) are met; (ii) 30 days after expiration of the five-year period described in Section l(a)(7); or (iii) if the goals are not met, the date the subsidy is repaid in accordance with Section 1 (d). The report must comply with Section 116J.994, subdivision 7 of the Business Subsidy Act. The Authority will provide information to Target regarding the required forms. If Target fails to timely file any report required under this Section, the Authority will mail by certified mail return receipt requested to Target at a warning within one week after the required filing date. If, after 30 days after receipt of the warning, Target fails to provide a report, Target must pay to the Authority a penalty of $100 for each subsequent day until the report is filed. Failure by the Authority to deliver a timely warning notice will not relieve Target's obligation to pay a penalty within 30 days after receipt of a notice to pay. The maximum aggregate penalty payable under this Section is $1,000. 2.6 Release. The City hereby agrees that the Developer is released of all liability under the Developer Business Subsidy Agreement to the extent of Target's obligations under this Agreement. Nothing in this Agreement shall be construed to limit the Authority's remedies against the Developer under Article X of the Contract in the event of a violation of any other provision of the Contract. 3 (2--lp IN WITNESS WHEREOF, the HRA and Developer have caused this Agreement to be duly executed by their duly authorized representatives as of the date first above written. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By Its Chairperson By Its Executive Director 4 12-7 STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _ day of 2006 by Susanne Sandahl, the Chair of the Housing and Development Authority in and for the City of Richfield, Minnesota, on behalf of the Authority. Notary Public STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _ day of , 2006 by Steve Devich, the Executive Director of the Housing and Development Authority in and for the City of Richfield, Minnesota, on behalf of the Authority. Notary Public RYAN COMPANIES US, INC. By Its STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _ day of , 2006 by , the of Ryan Companies US, Inc., a Minnesota corporation, on behalf of the corporation. Notary Public 4045001JDOC 062006 5 Home Depot 12-~ BUSINESS SUBSIDY AGREEMENT TillS AGREEMENT, made and entered into this _day of , 2006 by and between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a Minnesota public body corporate and politic (the "HRA"), and HOME DEPOT , a corporation (the "Home Depot"). 1. Business Subsidy Agreement. The provisions of this Agreement constitute the "business subsidy agreement" for the purposes of the Business Subsidy Act. 1.1 General Terms. The parties agree and represent to each other as follows: 1.1.1 For the purpose of this Agreement, the terms used in this Agreement which are defined in the Contract for Private Development between the parties and dated as of July 27, 2005 (the "Contract") shall have the meanings given them in the Contract. 1.1.2 The subsidy provided to Ryan Companies US, Inc. (the "Developer") consists of (i) the sum of financing provided by the Authority and City in the form of the Note, and (ii) conveyance of a portion of the HRA Property by the Authority to Developer for less than fair market value. Each disbursement, payment or waiver described in such Article represents a forgivable loan that is repayable by the Developer in accordance with this Section. As of the date of this Agreement, the aggregate business subsidy cannot be estimated with any degree of certainty, however, in no event will the total amount of the business subsidy payable under the Contract exceed $6,889,750 (in present value terms). 1.1.3 The public purposes of the subsidy are to redevelop an area that has been significantly impacted, and will continue to be impacted by airport operations on land adjacent to the Development Property, establish a mixed commercial development that is designed to be compatible with the impacts, and which will serve as a buffer to land uses to the West of the Development Property and to implement the City's land use goals identified in the comprehensive plan. 1.1.4 The goals for the subsidy are: to secure completion of the Minimum Improvements of the Development and the related Public Improvements by the Completion Date for that Phase, and to operate the Minimum Improvements for at least five years as described in clause (6) below. 1.1.5 If the goals described in clause (4) are not met, the Developer or its successors and assigns must make the payments to the Authority described in Section l(d). 1.1.6 The subsidy is needed because the cost ofland acquisition, demolition and site clearance, does not make the development of the Minimum Improvements financially feasible without public assistance, all as determined by the Authority and City. 1 /2-9 1.1.7 The Developer and its successors and assigns must continue operation of the Minimum Improvements for at least five years after the date of issuance of the Certificate of Completion for the portion of the Minimum Improvements covered by the certification.. For the purpose of this Section, space will be considered to be maintained in operation if it is leased, or available for lease, to any person or entity, or occupied by Developer for use in its trade or business. 1.1.8 The Developer does not have a parent corporation. 1.1.9 The Developer has not received, and does not expect to receive, financial assistance from any other "grantor" as defined in the Business Subsidy Act, in connection with the Development Property or the Minimum Improvements. 1.1.10 The Developer has entered into a Business Subsidy Agreement with the HRA dated ,2006 (the "Developer Business Subsidy Agreement"). 1.1.11 The Developer has commenced construction of the Home Depot Store portion of the Minimum Improvements (the "Home Depot Minimum Improvements"). 1.2 Job and Wage Goals. In accordance with Section 1161.994, subdivision 4, the Authority has determined after a public hearing that the creation or retention of jobs is not the goal ofthis redevelopment effort. Accordingly, the wage and job goals are set at zero. 1.3 Assignment and Assumption. The Developer has assigned all of its obligations under the Ryan Business Subsidy Agreement relating to the Home Depot Minimum Improvements as provided in this Agreement to Home Depot and Home Depot has agreed to undertake and perform the obligations set forth in this Agreement. 1.4 Remedies. (a) Since the Developer has commenced construction of the Home Depot Minimum Improvements within the time provided in Section 5.3 of the Contract, the amount of the Business Subsidy allocated to the Home Depot Minimum Improvements is reduced from a maximum of $2,887,494 to $1,047,750. (b) If the Developer fails to complete construction of the Home Depot Minimum Improvements within the time period provided in Section 5.3 of the Contract, then Home Depot shall repay the Authority the amount of $1,047,750. ( c) If the Home Depot Minimum Improvements are commenced and completed within the times provided in Section 5.3 of the Contract, the amount of the Business Subsidy allocated to the Home Depot Minimum Improvements will be reduced from $1,047,750 to $419,100. (d) If the Home Depot Minimum Improvements are commenced and completed within the times provided in Section 5.3 of the Contract, but the Home Depot Store is not operated for at least five years after the date of issuance of its Certificate of Completion for the Home Depot Store, then Home Depot shall repay the Authority a ( ~-/O portion of the Business Subsidy allocated to the Home Depot Minimum Improvements equal to $419,100 multiplied by the number of days remaining in such five year period and divided by 1,825 which represents the number of days in the five year period. Any demand for repayment must be in writing and is subject to the cure provisions of the Contract. Payment shall also include interest at the implicit price deflator as defined in Minnesota Statutes, Section 275.50, subd. 2, accrued from the Closing Date to the date of payment. The remedies set forth in this paragraph (d) are the exclusive remedies for failure to comply with the terms of this Agreement. In addition to the exclusive remedy described in this Section, Home Depot agrees and understands that it may not a receive a business subsidy from the Authority or any grantor (as defined in the Business Subsidy Act) for a period of five years from the date of the failure or until Home Depot satisfies its repayment obligation under this Section, whichever occurs first. 1.5 Reports. Home Depot must submit to the Authority a written report regarding business subsidy goals and results by no later than March 1 of each year, commencing March 1, 2008 and continuing until the later of (i) the date the goals stated Section l(a)( 4) are met; (ii) 30 days after expiration of the five-year period described in Section l(a)(7); or (iii) if the goals are not met, the date the subsidy is repaid in accordance with Section 1 (d). The report must comply with Section 116J.994, subdivision 7 of the Business Subsidy Act. The Authority will provide information to Home Depot regarding the required forms. If Home Depot fails to timely file any report required under this Section, the Authority will mail by certified mail return receipt requested to Home Depot at a warning within one week after the required filing date. If, after 30 days after receipt of the warning, Home Depot fails to provide a report, Home Depot must pay to the Authority a penalty of $100 for each subsequent day until the report is filed. Failure by the Authority to deliver a timely warning notice will not relieve Home Depot's obligation to pay a penalty within 30 days after receipt of a notice to pay. The maximum aggregate penalty payable under this Section is $1,000. 1.6 Release. The City hereby agrees that the Developer is released of all liability under the Developer Business Subsidy Agreement to the extent of Home Depot's obligations under this Agreement. Nothing in this Agreement shall be construed to limit the Authority's remedies against the Developer under Article X of the Contract in the event of a violation of any other provision of the Contract. I 2-- I ( IN WITNESS WHEREOF, the lIRA and Developer have caused this Agreement to be duly executed by their duly authorized representatives as of the date first above written. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By Its Chairperson By Its Executive Director ( 2- 11- STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _ day of 2006 by Susanne Sandahl, the Chair of the Housing and Development Authority in and for the City of Richfield, Minnesota, on behalf ofthe Authority. Notary Public STATEOFMINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _ day of , 2006 by Steve Devich, the Executive Director of the Housing and Development Authority in and for the City of Richfield, Minnesota, on behalf of the Authority. Notary Public RYAN COMPANIES US, INC. By Its STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _ day of , 2006 by , the of Ryan Companies US, Inc., a Minnesota corporation, on behalf of the corporation. Notary Public 4046173v1.DOC 062006 '. . / . ~ RICHFIELD AGENDA SECTION: AGENDA ITEM # RE;PORT# RESOLUTIONS 13 139 STAFF REpORT CITY COUNCIL MEETING REpORT PREPARED By: COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED By CITY MANAGER: g/ ri JUNE 27,2006 KA TIA MEDVETSKI, REDEVELOPMENT SPECIALIST NAME, TITLE ITEM FOR COUNCIL CONSIDERATION: Consideration of a Resolution authorizing just compensation and acquisition of four residential properties at 6600 17th Avenue, 6601 16th Avenue, 1614 East 66th Street, and 1620 East 66th Street, for new 17th Avenue roundabout. I. RECOMMENDED ACTION: By Motion: Approve the attached Resolution establishing just compensation and authorizing the purchase of 6600 17th Avenue, 660116th Avenue, 1614 East 66th Street, and 1620 East 66th Street, for new 17th Avenue roundabout. BACKGROUND I . The four single family, residential properties located at 6600 17th Avenue, 6601 16th Avenue, 1614 East 66th Street, and 1620 East 66th Street are necessary acquisitions to accommodate the new 17th Avenue intersection bus pull-outs. . The acquisition and relocation expenses associated with these properties will be funded using the 429 Special Assessment Bonds. The interim fund source would be the Capital Improvement Reserve Fund. I II. 062706 JustComp17thAve . . . There is a need to proceed with these purchases now to make the property available in a timely manner. Ryan will be utilizing the residual land from the two properties on the north side of 66th Street. All of the various agreements with Ryan have not yet been executed. They are not as fully committed to the project as is intended. Thus there is some risk with the City, advancing the purchase of these four properties. The risk with these four properties is not greater than the risk already assumed for the four properties on the east side of 17th Avenue, south of 66th Street. The City would need to carry the debt for longer than anticipated should Ryan not proceed as planned. In 2005, the City Council gave approval to BCl Appraisals, Inc. to undertake appraisal reports and Conworth Inc., (now SRF Consulting Inc.) for acquisition/relocation services. However, offers could not be made until the project had greater certainty. Appraisal reports were completed in October, 2005 and recently updated. The fair market value for the properties did not change. It is recommended that just compensation be set as indicated and acquisition be .authorized. The appraised values are: . . . . 6600 - 17th Avenue 6601 - 16th Avenue 1614 East 66th Street 1620 East 66th Street $250,000 $200,000 $211,000 $224,000 . The property owners may also be eligible for relocation benefits. The relocation benefits will be calculated separately in accordance with the Uniform Relocation Act. I III. BASIS OF RECOMMENDATION I I A. POLICY I . In July 2005, the Housing and Redevelopment Authority (HRA) approved a Contract for Private Development with Ryan Companies US, Inc. to build a retail development in the Cedar Point project area. . On October 25, 2005 the City Council approved a two-lane roundabout design for the new intersection at 66th Street and 17th Avenue and a financing plan concept for proposed improvements that would require a 429 Special Assessment Bond with the developer paying 20% of the project costs. . Uniform acquisition procedures will be followed. I B. CRITICAL ISSUES I . SRF Consulting, Inc. will present a purchase offer to the property owners upon the City Council's approval of just compensation. . . . I C. FINANCIAL I . A Special Assessment 429 Bond will provide permanent financing for the road improvement. . The interim funding source is Capital Improvement Reserve Fund. I D. LEGAL I . Legal counsel has reviewed this matter and the Resolution. I IV. ALTERNATIVE RECOMMENDATION(S) I . Delay or do not approve just compensation and acquisition of the subject properties. I V. ATTACHMENTS . Resolution. . Map. I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . N/A J3-{ RESOLUTION NO. . RESOLUTION ESTABLISHING JUST COMPENSATION AND AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6600 17TH AVENUE, 6601 16TH AVENUE, 1614 EAST 66TH STREET AND 1620 EAST 66TH STREET WHEREAS, On October 25, 2005, the City Council (City) approved a two-lane roundabout design for the new intersection at 66th Street and 17th Avenue and a financing plan concept for proposed improvements; WHEREAS, the real property described in Exhibit A is identified for purchase by the City; and WHEREAS, interim funds are available from the Capital Improvement Reserve Funds for the purchase of the real property and related expenses described in Exhibit A; and WHEREAS, funds from a Special Assessment Bond will be available to the City for reimbursement of acquisition and relocation costs related expenses; and WHEREAS, the City is authorized by Minnesota Statutes to acquire real property within its corporate boundaries; and WHEREAS, the City has caused appraisals for the subject property to be made by a qualified independent professional appraiser to determine fair market value of real estate; and WHEREAS, the fair market value of the real properties are identified in Exhibit B. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Richfield, Minnesota as follows: 1. That just compensation for the real properties identified in Exhibit B is approved. 2. That the City's consultant is authorized to present offers of said amounts to the respective property owners. 3. That the City's consultant is authorized to undertake all other necessary actions to purchase said property on behalf of the City. Adopted by the City Council of the City of Richfield, Minnesota this 27th day of June, 2006. Martin J. Kirsch, Mayor . ATTEST: Nancy Gibbs, City Clerk 062706 JustComp17thAve 13- 9- EXHIBIT A Property Address Legal Description 6600 - 17th A ven ue Lot 1, Block 1, Cedar Sunrise Addition, Hennepin County, Minnesota Together with all abutting streets and alleys, vacated or to be vacated, an all easements gaps, overlaps and gores, appurtenant thereto 6601 - 16th Avenue Lot 16, Block 1, Cedar Sunrise Addition, Hennepin County, Minnesota Together with all abutting streets and alleys, vacated or to be vacated, an all easements gaps, overlaps and gores, appurtenant thereto 1614 East 66th Street Lot 2, Block 5, Iverson's Third Addition, Hennepin County, Minnesota Together with all abutting streets and alleys, vacated or to be vacated, an all easements gaps, overlaps and gores, appurtenant thereto 1620 East 66th Street Lot 1, Block 5, Iverson's Third Addition, Hennepin County, Minnesota Together with all abutting streets and alleys, vacated or to be vacated, an all easements gaps, overlaps and gores, appurtenant thereto . 062706 JustComp17thAve 13--3 EXHIBIT B Property Address Fair Market Value 6600 - 17th Avenue $250,000 6601 - 16th Avenue $200,000 1614 East 66th Street $211,000 1620 East 66th Street $224,000 - . 062706 JustComp17thAve ~ c: o . c: CI) '- 0.0 E"- o o +oJ tn ::J .., . .c .c .... .... ~ ~ o 0 tntn CI) CI) ~ ~ c c Q) CI) > > <C<C .c .c .... .... CD ...... ~~ ~o 00 CD CD CD CD .... .... tn tn ca ca ww .... .... Q) CI) CI) CI) ... ... .... .... t/')t/') .c.c .... .... CD CD CD CD "'lI:t0 ~N CD CD ~~ h-~/ ... ... '" <> '" ~ ~ "l 2' ~ ~ ~ ~t~~ 1 J~.}~~ ~~b~,f'2~V);;: ~- ~ ~ ~ ~ ~ ~. ~ ~ ~ ~ ~ t !ll!ili~ii~~ ~d:d:d:ltli~l ~i I 0 11111" 0~ [3 /3-Lj. ... .. 8 "Q c ill iii ill ..l ., AGENDA SECTION: AGENDA ITEM # REpORT # RESOLUTIONS 14 140 ....... STAFF REpORT RICHFIELD CITY COUNCIL MEETING JUNE 27, 2006 REpORT PREPARED By: PATRICK SMITH, COMMUNITY DEVELOPMENT1iANAGER NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: ~ ~ REVIEWED BY CITY 1iANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a Maintenance Agreement with Ryan Companies US, Inc, for the public im rovements associated with the 66th Street and 17th Avenue intersection ro'ect 1. RECOMMENDED ACTION: By Motion: Adopt the attached resolution approving the Maintenance Agreement with Ryan Companies US, Inc. for the public improvements associated with the 66th Street and 17th Avenue intersection ro'ect I II. BACKGROUND I On May 16, 2005 the Richfield Housing and Redevelopment Authority (HRA) approved a Contract for Private Redevelopment (Contract) with Ryan Companies US, Inc. (Ryan) for the redevelopment of the Cedar Point area. On June 13, 2006 the City Council approved a Public Improvements and Special Assessment Agreement (Public Improvements Agreement) in which the City agreed to construct and/or install certain landscape plantings, irrigation systems and special retaining wall treatments within the Intersection Project. The Public Improvements Agreement also stated that the City would establish a special service district that will provide for payment of the maintenance, repair, replacement and restoration of the public improvements. 062706 - Maintenance Agreement Cedar Point Prior to establishment of the special service district, Ryan has agreed to provide for the payment of the ongoing maintenance, repair, replacement and restoration of the public improvements in accordance with the terms and conditions listed in the attached Maintenance Agreement. I III. BASIS OF RECOMMENDATION I I A. POLICY I . On May 16, 2005 the Richfield Housing and Redevelopment Authority (HRA) approved a Contract for Private Redevelopment (Contract) with Ryan Companies US, Inc. (Ryan) for the redevelopment of the Cedar Point area. . On June 13, 2006 the City Council approved the Public Improvements Agreement in which the City agreed to construct and/or install certain landscape plantings, irrigation systems and special retaining wall treatments within the Intersection Project and establish a special service district that will provide for payment of the maintenance, repair, replacement and restoration of the public improvements. . It is an ongoing policy that private developers pay for the maintenance of public improvements that exceed the City's standard improvements. I B. CRITICAL ISSUES I . It is important that between Ryan and the City there is a clear understanding of the ongoing responsibilities and cost allocations for the construction, maintenance, repair and replacement of the public improvements. . The proposed Maintenance Agreement gives Ryan the responsibility, at its sole cost and expense, for the routine maintenance, repair, replacement and restoration of the public improvements. . Ryan is not responsible for the repair or replacement of damage to the public improvements as a result of vehicle driver neglect, city street maintenance, vandalism or defective installation, which shall be the responsibility of the City. . Exhibit B of this Maintenance Agreement will set forth Ryan's performance standards for the routine maintenance, repair, replacement and restoration of the public improvements. (Both Exhibit A and B will be presented to the Council for approval when they are formulated.) . In addition to the Maintenance Agreement, Ryan has agreed to install, at its expense, and thereafter to maintain, repair, replace and restore, all at its cost and expense the landscape and other improvements located between the curb line and the right-of-way on Cedar Point Commons. . The Agreement shall terminate upon the effective date of the special service district. I C. FINANCIAL I . The Citywill maintain standard insurance coverage on the public improvements, and any and all proceeds from such coverage, to the extent they are available, will be used to offset repair costs which are not the sole responsibility of Ryan. I D. LEGAL I . The City's legal counsel and Ryan's attorney have prepared the attached Agreement. I IV. ALTERNATIVE RECOMMENDATION(S) I . Approve the proposed Agreement with added provisions or modifications. . Do not approve the proposed Agreement. . Delay consideration. I V. ATTACHMENTS . Resolution . Maintenance Agreement I VI. PRINCIPAL PARTIES EXPECTED AT MEETING I . A representative of Ryan Companies US, Inc. l<i-l RESOLUTION NO. RESOLUTION APPROVING MAINTENANCE AGREEMENT WITH RYAN COMPANIES US, INC. WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "Authority") is undertaking a redevelopment project called Cedar Point, hereinafter called the "Project"; and WHEREAS, the Project is included within The Richfield Redevelopment Project Area, duly established by Resolution No. 8030, adopted on June 14, 1993 (the "Project Area"); and WHEREAS, The Authority and Ryan Companies US, Inc ("Ryan") entered into that certain Contract for Private Development dated July 27, 2005, as amended by the First Amendment to Contract for Private Development dated June 26, 2006 (the "Development Agreement"); and . WHEREAS, the City and Ryan entered into the instrument entitled Agreement on June 13,2006, and amended on June 27,2006, in which the City agreed to construct and/or install certain landscape plantings, irrigation systems and special retaining wall treatments within the Intersection Project. The Public Improvements Agreement also stated that the City would establish a special service district that will provide for payment of the maintenance, repair, replacement and restoration of the public improvements. WHEREAS, the City and Ryan desire to agree to the maintenance of the public improvements required in the Agreement; and WHEREAS, Exhibits A and B will be presented to the City Council for their review and approval at a later date; and WHEREAS, the City has reviewed the terms of a proposed agreement (the "Maintenance Agreement") with Ryan, and has received the recommendation of City staff regarding the terms of the Maintenance Agreement. NOW, THEREFORE, BE IT RESOLVED by the City of Richfield, Minnesota as follows: 1. The Maintenance Agreement is approved in substantially the form presented. 2. The Mayor and City Manager are authorized to execute the Maintenance Agreement on behalf of the Council and to take all actions and do all things that are reasonable necessary to the fulfillment of the City's obligations under the Maintenance Agreement. Approved by the City Council of the City of Richfield this 27th day of June 2006. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk . . . J4-d- MAINTENANCE AGREEMENT This Maintenance Agreement ("Agreement") is made on this _ day of _, 2006, by and between Ryan Companies US, Inc., a Minnesota corporation ("Ryan") and the City of Richfield, a municipal corporation under the laws of the State of Minnesota (the "City"). WITNESSETH: WHEREAS, Ryan and the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, have entered into a Contract for Private Development, dated July 27,2005, as amended by the First Amendment to Contract for Private Development dated June , 2006, relating to the construction and development of a shopping center at the intersection of 66th Street and 1 ih Avenue, to be known as "Cedar Point;" and WHEREAS, pursuant to the terms of an Agreement dated June _, 2006, between Ryan as "Developer" and the City, and the form Public Improvements and Special Assessment Agreement ("PISAA") attached thereto as Exhibit A, the City has agreed to construct and/or install certain landscape plantings, irrigation systems and special retaining wall treatments (the "Improvements")within the Intersection Project as that term is defined in the PISAA, and has further agreed to establish a special service district ("SSD") to be created under Minn. Stat. S428A, which SSD will include the areas identified on Exhibit A to this Agreement, and will further provide for payment of the ongoing maintenance, repair, replacement and restoration of the Improvements; and WHEREAS, prior to the establishment of the SSD, the City and Ryan have agreed that Ryan shall provide for the payment of the ongoing maintenance, repair, replacement and restoration of the Improvements in accordance with the terms and conditions of this Agreement. NOW, THEREFORE, in consideration of the mutual promises of the parties hereto and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Ryan and the City agree as follows: 1. Deshm and Construction. Pursuant to the terms of the PISAA, the city will have responsibility for the design and construction/installation of the Improvements as part of its "Intersection Project" as that term is defined within the PISAA. The plans and specifications for the Improvements shall also address the means and methods for running water and electricity to the Improvements during the time they are maintained by Ryan pursuant to the terms of this Agreement and for the relocation and reconnection of water and electricity, at the sole cost and expense of the City, when maintenance is assumed by the City pursuant to the requirements of the SSD. . . . Jt{-~ 2. Maintenance. Once the Improvements have been completed by the City, and during the Term of this Agreement, Ryan will be responsible, at its sole cost and expense, for the routine maintenance, repair, replacement and restoration of the Improvements. Specifically excluded from the definition of routine maintenance, repair, replacement and restoration shall be any repair, replacement and restoration required as a result of vehicle driver neglect, city street maintenance, including snow plowing, vandalism or defective installation, all of which costs shall be the responsibility of the City. Ryan's, and eventually the City's, maintenance obligations shall be performed in accordance with the terms and conditions of the Landscape, Irrigation Maintenance Criteria set forth as Exhibit B to this Agreement. 3. Term. The term of this Agreement shall commence upon substantial completion of the Improvements and shall terminate upon the effective date of the SSD. 4. Warranties. Any and all warranties available as a result of the initial construction of the Improvements shall be assigned to Ryan, and to the extent available, will be utilized to offset Ryan's maintenance obligations hereunder. 5. Insurance. The City will maintain adequate insurance coverage on the Improvements to the extent the same can be insured under a standard casualty loss insurance policy with a deductible not to exceed $1,000.00. Any and all proceeds from such policies, to the extent the same are available, will be used to offset repair costs which are not the sole responsibility of Ryan. The cost of said insurance shall be at the sole cost and expense of the City. 6. License. The City hereby grants Ryan, its assigns, contractors and employees, a license to access the Improvements for purposes of carrying out its obligations under the terms of this Agreement. 7. Petition for SSD. At such time as requested to do so by the City, Ryan, or its successors and assigns, agree to petition the City for the establishment of the Special Service District to be created under Minn. Stat. ~428A. Notwithstanding the above agreement to petition for the establishment of the Special Service District, such petition shall not be deemed as a waiver of challenge or an agreement to any minimum assessment or charge to be made against the owners of property comprising Cedar Point. 8. Notices. City: City of Richfield 6700 Portland Avenue S. Richfield, MN 55423 Ryan: Ryan Companies US, Inc. 50 South Tenth Street, Suite 300 Minneapolis, MN 55403-2012 J4-~ . Attn: Bill McHale 9. Dispute Resolution. All disputes under this Agreement shall be submitted to, and settled by, arbitration in accordance with the rules of the American Arbitration Association. The parties shall appoint a mutually agreeable arbitrator reasonably familiar with contract law. In the event the parties are unable to agree to a single arbitrator, the dispute shall be submitted to a panel of three (3) arbitrators, one of which shall be reasonably familiar with multi-channel video program distribution systems and services. Each party shall appoint an arbitrator and the two arbitrators so appointed shall then select a third arbitrator. The arbitrators shall apply applicable federal laws and regulations and the laws of the jurisdiction in which the Premises are located, without regard to its choice of law principles. The decision of the arbitrators shall be binding and conclusive on all parties involved, and judgment upon their decision may be entered in a court of competent jurisdiction. The prevailing party in any such arbitration shall be entitled to collect from the non-prevailing party, all costs of the arbitration, including reasonable attorneys' fees. 10. Severability. If any provision ofthis Agreement is invalid or unenforceable, such provision, if feasible, shall be deemed to be modified to be within the limits of enforceability or validity; if, however, the offending provision cannot be so modified, it shall be stricken and all other provisions of this Agreement in all other respects shall remain valid and enforceable. . 11. HeadiUl!s. The paragraph headings or captions appearing in this Agreement are for convenience only, are not a part of this Agreement and are not to be considered in interpreting this Agreement. 12. Entire A2reement: Amendment. This Agreement, including the Exhibits, contains the entire agreement between the parties pertaining to the subject matter hereof and fully supersedes all prior written or oral agreements and understandings between the parties pertaining to such subject matter. This Agreement shall not be modified, amended, supplemented or revised, except by a written document signed by both parties. 13. Recitals/Exhibits. The above recitals are true and correct and constitute an integral part of this Agreement. All exhibits referred to in and attached to this Agreement are incorporated in and made a part of this Agreement. 14. Controllin2 Law. ThisAgreement shall be construed, performed and enforced in accordance with the laws of the State of Minnesota. '- J4-5 . 15. Counterpart Sie:natures. This Agreement may be executed simultaneous in two or more counterparts, each of which shall be deemed an original, and all of which together shall constitute on and the same instrument. CITY: RYAN: CITY OF RICHFIELD, a municipal corporation RYAN COMPANIES US, INC., a Minnesota corporation By: By: Its Its By: Its 331632 3 -- . . . . fLf-l.P EXHIBIT A (Intersection Drawing) EXHIBIT B (Landscape, Irrigation Maintenance Criteria) AGENDA SECTION: AGENDA ITEM # REpORT # RESOLUTIONS 15 141 ...... STAFF REpORT RICHFIELD CITY COUNCIL MEETING JUNE 27, 2006 REpORT PREPARED By: PATRICK SMITH, COMMUNITY DEVELOPMENT MANAGER NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Consideration of a resolution approving an Escrow Agreement with Ryan Companies US, Inc. 1. RECOMMENDED ACTION: By Motion: Adopt the attached resolution approving an Escrow A reement with R an Companies US, Inc. I II. BACKGROUND I On May 16, 2005 the Richfield Housing and Redevelopment Authority (HRA) approved a Contract for Private Redevelopment (Contract) with Ryan Companies US, Inc. (Ryan) for the redevelopment of the Cedar Point area. The Contract lists 14 conditions that must be met prior to Ryan closing on HRA and City-owned properties. The proposed Escrow Agreement helps facilitate the closing on the HRA and City- owned properties. Under the proposed Escrow Agreement, the HRA, City Council and Ryan agree to place the listed documents in escrow until Ryan closes on the HRA and City-owned property, but not later than September 30, 2006. Ryan Escrow Agreement I III. BASIS OF RECOMMENDATION I I A. POLICY I . In July 2005 the HRA approved a Contract for Private Development with Ryan to build a SuperTarget and Home Depot store at the northwest corner of TH 77 and 66th Street. . On June 13, 2006 the City Council approved the rezoning, Final Development Plan, Conditional Use Permit and Preliminary Plat of the Cedar Point Commons project. I B. CRITICAL ISSUES I . Contingencies to be satisfied by September 30th as part of the Escrow Agreement include: 1) Ryan's Acquisition of the Third-Party Properties as defined in the Contract. 2) HRA Title complete as to all HRA Property (including Haag, Johnson, Gap parcels, and KBL easement). 3) Contemporaneous closing for acquisition of HRA Property and all of the Third-Party Property. 4) The nine Representations of the HRA as set forth in Section 2.2 of the Contract are still true as of the Closing. 5) All Target Agreements (Business Subsidy Agreement) have been executed. 6) All Home Depot Agreements (Business Subsidy Agreement) have been executed. 7) The rezoning of Block 1, Cedar Point Commons is effective. 8) The Final Development Plan for Block 1, Cedar Point Commons, is effective on the date that the rezoning of said Block is effective. 9) The street vacations for development of Block 1, Cedar Point Commons, is effective on the date that the rezoning of said Block is effective. . For Ryan to move forward with necessary steps in the development process, according to the development schedule, Ryan is requesting the City to approve the attached Escrow Agreement. . I C. FINANCIAL . N/A I D. LEGAL I . The City's legal counsel and Ryan's attorney are continuing to negotiate the Escrow Agreement. The final proposed Escrow Agreement will be presented by the City Attorney at the Council meeting. I IV. Iv. AL TERNA TIVE RECOMMENDA nONe s) I . Approve the proposed Escrow Agreement with added provisions or mod ifications. . Do not approve the proposed agreement. . Delay consideration. ATTACHMENTS . Resolution . Escrow Agreement I VI. PRINCIPAL PARTIES EXPECTED AT MEETING I . A representative of Ryan Companies US, Inc. /5-1 RESOLUTION NO. RESOLUTION APPROVING ESCROW AGREEMENT WITH RYAN COMPANIES US, INC. WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "Authority") is undertaking a redevelopment project called Cedar Point, hereinafter called the "Project"; and WHEREAS, the Project is included within The Richfield Redevelopment Project Area, duly established by Resolution No. 8030, adopted on June 14, 1993 (the "Project Area"); and WHEREAS, The Authority and Ryan Companies US, Inc ("Ryan") entered into that certain Contract for Private Development dated July 27, 2005, as amended by the First Amendment to Contract for Private Development dated June 26, 2006 (the "Development Agreement"); and WHEREAS, the City and Ryan desire to satisfy the preconditions to Closing set forth in Section 3.12 of the Development Agreement; and WHEREAS, the City has reviewed the terms of a proposed escrow agreement (the "Agreement") with Ryan, and has received the recommendation of City staff regarding the terms of the amended Agreement. NOW, THEREFORE, BE IT RESOLVED by the City of Richfield, Minnesota as follows: 1. The Agreement is approved in substantially the form presented. 2. The Mayor and City Manager are authorized to execute the Agreement on behalf of the Council and to take all actions and do all things that are reasonable necessary to the fulfillment of the City's obligations under the Agreement. Approved by the City Council of the City of Richfield this 27th day of June 2006. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk I 5-;t ESCROW AGREEMENT THIS ESCROW AGREEMENT (this "Agreement") is made as of June 30, 2006, by and among RYAN COMPANIES US, INC., a Minnesota corporation ("Ryan"), THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a Minnesota public body corporate olitic (the "HRA"), CITY OF RICHFIELD, a Minnesota municipal corporation ( and OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY, i ation ("Escrow Agent"). Ryan, the HRA, the City and Escrow Agent ar i y referred to herein as a "Party" and collectively referred to herein as t A. Ryan and the HRA are parties to dated July 27, 2005, as amended by that cert Development dated June _,2006 (the "Dev real property located in Richfield, He Exhibit A to the Development Agreem developed. Capitalized terms not defi them in the Development Agreement. B. In order to fac' Property pursuant to the Dev into this Agreement. development of the Development e HRA and the City desire to enter C. required by Agreem condi . deposit in escrow with Escrow Agent certain documents pending satisfaction of the terms and conditions of this ents related to the satisfaction of such terms and onsidera on of the mutual covenants of the parties contained luable consideration, the receipt and sufficiency of which is ree as follows: es. The sole duties of Escrow Agent shall be those described herein, rovided herein, Escrow Agent shall be under no obligation to determine rties are complying with any requirements of law or the terms and conditions of a s other than this Agreement. Escrow Agent may conclusively rely upon and shall be d in acting upon any notice, consent, order or other document that it believes to be genuine and to have been signed or presented by the proper Party or Parties. Escrow Agent shall have no duty or obligation to verify any such notice, consent, order or other document, and its sole responsibility shall be to act as expressly set forth in this Agreement. Escrow Agent shall be under no obligation to institute or defend any action, suit or proceeding in connection with this Agreement unless first indemnified to its satisfaction. Escrow Agent may consult with its counsel with respect to any question arising under this Agreement and shall not be liable for any action taken or omitted in good faith upon advice of such counsel. Escrow 15-3 Agent hereby agrees to act as escrow agent and hold all documents and funds in accordance with the terms of this Escrow Agreement. 2. Deposit of Documents. The Parties have delivered to Escrow Agent four (4) fully executed and, if applicable, acknowledged originals of each of the documents identified on Exhibit A attached hereto (the "Escrowed Documents"), all of which documents are dated June _,2006, unless otherwise indicated on Exhibit B. 3. Marked-up Title Commitments. Th title commitments issued by Escrow Agent: (a Exhibit B attached hereto (the "Ryan Commi committing to insure title to the HRA Property insure title in the condition shown in the Ryan of the deeds conveying the Development Prope objections, claims and/or appeals by condemnee acquired by condemnation; and (b) a marked-up tit hereto (the "City Commitment") naming the C' Third Party Property in Ryan. The Ryan C insure title to the Third Party Property . between Ryan and the current owners 0 on or before July 1, 2006, written nof agreements have been satisfied or wa' letter of undertaking in form re bl acquisition of the Third Party P ents include the following mmitment in the form of its lender as insureds, mitting to f recording uring against n of the De opment Property e form of Exhibit C attached . ing to insure title to the itment shall commit to n (i) the ng purchase agreements , (ii) Ryan sending to said owners ,avor of Ryan in said purchase delivering to Escrow Agent a Agent, undertaking to close on its e agreements. acquired title to and be prepared to convey to Ryan the entire uding without limitation the Haag parcel located at 6500 th (the "Haag Parcel"), the Johnson parcel located at 6300 th (the "Johnson Parcel"), the "Gap Parcels", and not subject ment). (c) s on Ryan's acquisition of the entire HRA Property and the entire y Property shall occur simultaneously. (d) The representations of the HRA set forth in Section 2.2 of the Development Agreement shall be true and correct as of the Closing. (e) Ryan and Target Corporation shall have executed and delivered all agreements, instruments and other documents as Ryan deems necessary or appropriate for the development of a Target store on the Development Property. 2 J~-V (t) Ryan and Home Depot shall have executed and delivered all agreements, instruments and other documents as Ryan deems necessary or appropriate for the development of a Home Depot store on the Development Property. (g) The City shall have irrevocably rezoned as the Development Property that Ryan intends to replat as Block 1, Cedar Point Commons ("Block I"). (h) The City's approval for the Final Dev lop lock 1 shall be effective. (i) All existing streets within Block G) The following events shall ha dates: respective 7/11/06 7/11/06 The City shall have appr The City shall have a HRA of the porti legally describ the ordinance be effective 7/17/06 7/25/06 of the HRA Property to Ryan. orized the condemnation of the ed on Exhibit E attached hereto operties") shall have acquired title to the Haag Parcel. shall have duly executed and delivered to Escrow Agent ents necessary to convey theHRA Property to Ryan that sing from the Escrowed Documents. HRA shall have acquired possession of the Haag Parcel. 5. Ryan's Right to Terminate. If the City fails to approve the ordinance or plat of the Development Property as required pursuant to paragraph 4 of the Agreement dated June _, 2006 between Ryan and the City, then Ryan may terminate this Agreement by providing written notice to the City, the HRA and Escrow Agent. Upon such termination: (a) The transactions contemplated by the Escrowed Documents shall be deemed rescinded and void ab initio, except that the obligations of the HRA, the City and 3 /5-5 Escrow Agent under this Section 5 shall forever survive the termination of this Agreement and the rescission of the Escrowed Documents pursuant to this Section 5. (b) The Escrowed Documents shall be returned to the respective Party that delivered such documents into escrow, except that Escrow Agent shall destroy any Escrowed Documents that have been exec d by more than one Party. (c) The City and the HRA shall withi f the termination of this Agreement, (1) with respect to an Party Property owned by Ryan at the time of such termin y from Ryan via Quit Claim Deed in its AS-IS condit' y Property Purchase Price (as defined belo fthe Third Party Property that Ryan has a et acquired, (i) accept an assignment of Ryan' e Ryan igations, under any purchase agreement for the p operty, (ii) pay to Ryan the Third Party Property Assignme Price (as ow), (iii) faithfully and diligently perform all of R tions un chase agreements and otherwise related to the template rein (including without limitation paying, as an Ie purchase price for the property, any brokerage commis tion with the transaction, and any relocation paymen ccupant of such property), and (iv) indemnify, d n from and against any claim, loss, liability, dam sts or uding reasonable attorneys' fees) asserted agai urred by It of the City's or the HRA's, as the case may e to per n's obligations under said purchase agreemen ise related to the transactions contemplated therein. As in this p hird Party Property Purchase Price" shall mean the otalo . g amounts: the purchase price paid by Ryan to the to acq plicable portion of the Third Party Property; any ission y Ryan in connection with the purchase of such g or other out-of-pocket costs incurred by Ryan in connection f such property (including without limitation taxes, recording ed to environmental testing and other investigation of the osts, title-insurance premiums and fees, and reasonable y relocation payments paid or owed to any owner or occupant and any costs or expenses related to the relocation of any owner such property (including without limitation the costs of any cialists and consultants). As used in this paragraph, "Third Party Prop ssignment Price" shall mean the Third Party Property Purchase Price, less the amount thereof that will be paid directly by the City and the HRA. (d) The HRA shall immediately reimburse Ryan for all out-of-pocket costs incurred by Ryan to relocate the utilities pursuant to the First Amendment to Contract for Private Development dated June _, 2006, between Ryan and the HRA. If Ryan does not give a notice of termination at or prior to the Closing, the contingencies in Section 4 shall be deemed to be satisfied or waived by Ryan and the Parties shall proceed to 4 15-~ Closing in accordance with the other terms and conditions hereof and of the Escrowed Documents. The contingencies in Section 4 are specifically for the sole and exclusive benefit of Ryan, and Ryan may unilaterally waive any contingency by written notice to the other Parties. 6. Release of Escrowed Documents: Termination of Escrow. Upon the consummation of the Closing, Escrow Agent shall (i) deliver one (1) original of each of the Escrowed Documents to all Parties to such Escrowed Do ents including any Party in whose favor the Escrowed Document was delivered); (ii) file the Escrowed Documents which are designated at the time of the delivery of at the same shall be duly recorded by the Escrow Agent, (iii) deliver t olicy of Title Insurance conforming to the Ryan Commitment, and (i wner's Policy of Title Insurance conforming to the City Commitment. 7. Closing. Notwithstanding anythi the Closing shall occur ten (10) days after the dat requesting the same; provided, however, that this not occur on or before September 30, 2006. U Escrowed Documents shall be returned to into escrow, except that Escrow Agent executed by more than one Party; Documents shall be deemed rescinded 8. Notices. If at an terms of this Agreement to an served when presented perso United States mail, registe ible to give any notice under the ill be deemed to have been given or ch notice has been deposited in the , addressed as follows: Charles F. Diessner, Esq. Fredrikson & Byron, P .A. 200 South Sixth Street, Suite 4000 Minneapolis, Minnesota 55402-1425 Facsimile No.: 612/492-7077 Richfield Housing and Redevelopment Authority 6700 Portland Avenue Minneapolis, MN 55423 Attention: Executive Director Facsimile No.: 5 /5-7 with a copy to: John B. Dean, Esq. Kennedy & Graven, Chartered 470 US Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 If to the City: City of Richfield 6700 Portland Ave Minneapolis, Attention: Facsimile with a copy to: If to Escrow Agent: Any party hereto may change . hereto not less than fifteen (15 written notice to the other parties e of such change. [Signature pages follow] 6 /~-8 IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed as of the day and year first stated above. RYAN COMPANIES US, INC. [SIGNATURE PAGE TO ESCROW AGREEMENT] 7 /5-9 THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA [SIGNATURE PAGE TO ESCROW AGREEMENT] 8 /s-~/o CITY OF RICHFIELD By: Its: [SIGNATURE PAGE TO ESCROW AGREEMENT] 9 /5 -// OLD REPUBLIC NATIONAL TITLE INSURANCE COMPANY By: Its: #4046870 _1.DOC 062206 [SIGNATURE PAGE TO ESCROW AGREEMENT] 10 16'-/:( EXHIBIT A TO ESCROW AGREEMENT ESCROWED DOCUMENTS 1. Contract for Private Development dated July 27,2 2. First Amendment to Contract for Private De Ryan and the HRA. 3. Business Subsidy Agreement between 4. Waiver Agreement between Ryan and t 5. Right of Entry Agreement dated 6. Agreement dated 7. Public Improvements and Sped between Ryan and the City. _, 2006, 8. Option and Right of First ReD and the City. 9. 10. Haag Stipulation/W . Haag] . I between the HRA and [Glynn R. 11. . , 2006, between the HRA ts (as d n the Development Agreement), all of which shall with Es row Agent and shall be dated by Escrow Agent as of ed in the Development Agreement). , 2006, between the City, [Ryan] and Marvin F. 14. owledged on behalf of the City conveying the portion of HRA e City to the HRA, which deed shall be undated when escrowed and shall be dated by Escrow Agent as of the date of Closing. 15. Ryan Commitment. 16. City Commitment. /0-/3 EXHIBIT B TO ESCROW AGREEMENT RYAN COMMITMENT [Marked-up title commitment ori . issued by Old Republic Nation naming Ryan and is attached.] /5~/y EXHIBIT C TO ESCROW AGREEMENT CITY COMMITMENT [Marked-up title commitment ori . all issued by Old Republic Nation I naming the City as insured is att /5-/5" EXHIBIT D TO ESCROW AGREEMENT LEGAL DESCRIPTION OF CITY PORTION OF THE HRA PROPERTY [Insert the legal description of the portion of the HRA Pr /6-/~ EXHIBIT E TO ESCROW AGREEMENT DESCRIPTION OF THE 66th STREET PROPERTIES [Insert the legal descriptions or the addresses of the 66th PROPOSED AGENDA SECTION: ORDINANCE/RESOLUTION AGENDA ITEM # 16 REpORT # 142 ...... STAFF REpORT RICHFIELD CITY COUNCIL MEETING JUNE 27,2006 REpORT PREPARED By: CHRISTINE COSTELLO, COMMUNITY DEVELOPMENT SPECIALIST NAME, TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Reconsideration and modifications to Transitory Ordinance No. 2006-9 for the planned unit development and the rezoning of properties located in the Cedar Point Commons project, reconsideration and modifications to Resolution No. 9772 for the final development plan and conditional use permit of the Cedar Point Commons project; and consideration of a resolution re ardin summa ublication of the above-mentioned transito ordinance.- 1. RECOMMENDED ACTION: By Motion: 1. Reconsider and approve the modifications to the transitory ordinance for the planned unit development and the rezoning of properties located in the Cedar Point Commons project. 2. Reconsider and approve the modifications to the resolution for the final development plan and conditional use permit of the Cedar Point Commons project. 3. Approve the attached resolution authorizing summary publication of an ordinance to Appendix 1 of the Richfield Zoning Code which pertains to the rezoning of parcels for Cedar Point Commons Develo ment ro. ect. 062706 Cedar Point PUD Resolution Revision I II. BACKGROUND I On June 13th the City Council approved the Cedar Point Commons project. As part of the approval process, a transitory ordinance and resolution approving the planned unit development, rezoning, final development plans, and conditional use, was approved for Ryan Companies US, Inc. (Ryan). Since the approvals on the 13th, Ryan has requested modifications be made to the transitory ordinance and resolution approving the rezoning, planned unit development, final development plan, and conditional use permit. In the transitory ordinance for rezoning and planned unit development the requested modifications include a description of the properties that are to be rezoned to PC-2 (planned general commercial). The description of the properties can be found in Section 2 and 3 of the transitory ordinance for planned unit development and rezoning. This was done to clarify the areas of the development to be rezoned. Also Section 4 of the transitory ordinance was revised to include a modification to make the rezoning of the properties effective thirty days after the transitory ordinance has been published. A second alternative was deleted. The modifications made to the resolution for the final development plan and conditional use permit includes the addition of a new number 5 under the heading of "Before Issuance of Occupancy permit(s)" near the end. Number 5 clarifies the final development plan and conditional use will not become effective until the rezoning of the properties is complete. The change made to the "ongoing conditions and requirements" section of the resolution addresses the requested language change for the condition regarding shopping carts. Originally the condition stated that, "Shopping carts have to have a wheel-locking device". The condition was amended by Council to read, "Property owner and tenants are responsible for ensuring all appropriate and reasonable measures are taken so that shopping carts will stay on the property. " I III. BASIS OF RECOMMENDATION I I A. POLICY I . Any modifications made to the transitory ordinance or resolution requires City Council approval. CRITICAL ISSUES I . The changes to the ordinance and resolution are discussed above. FINANCIAL I . N/A lB. I C. I D. LEGAL I . Legal counsel revised the proposed modifications to the transitory ordinance and resolution. . The two matters related to rezoning, the final development plan and conditional use permit require a simple majority vote. . The matter related to summary publication requires a unanimous vote. I IV. ALTERNATIVE RECOMMENDATION(S) I . Approve the modifications to the transitory ordinance and resolution with additional conditions. . Deny the modifications to the transitory ordinance and resolution with a finding that the proposed changes would have a negative impact on surrounding properties or the City as a whole. . Delay approval of the modifications. I V. ATTACHMENTS I . Council Bill for Planned Unit Development and Rezoning . Council Resolution for Final Development Plan and Conditional Use Permit . Council Resolution Approving Summary Publication of the Bill I VI. PRINCIPAL PARTIES EXPECTED AT MEETING . Ryan Companies US, Inc. - applicant . City Legal counsel / C,-{ BILL NO. 2006-_ AMENDMENT TO SECTION APPENDIX 1 OF THE ORDINANCE CODE OF THE CITY OF RICHFIELD (Cedar Point Commons Planned Unit Development Plan and Rezoning) THE CITY OF RICHFIELD DOES ORDAIN: Section 1. Findings of Fact. The City Council hereby makes the following findings of fa ct: A. The City's zoning ordinance establishes zoning classifications for individual property. The property located in the Cedar Point area, specifically between 63rd and 66th Streets and 17th Avenue and Trunk Highway 77 (TH 77) is zoned R (Single Family Residential), and C-2 (General Commercial), and I (Industrial) [the "subject area"]. B. Ryan Companies US, Inc. has submitted an application to the City for a planned unit development plan [the "PUD plan"] in the subject area. The PUD plan proposes to construct 370,000 square feet of commercial space and 1,527 parking stalls. C. The City has reviewed the zoning ordinance and determined that it would be appropriate to rezone the subject area as PC-2 (planned general commercial) and approve the PUD plan to establish the regulations governing the PC-2 district. D. The Planning Commission has conducted a public hearing concerning the PUD plan and amending the zoning ordinance in the subject area. The Planning Commission recommended approval of the PUD plan and zoning ordinance amendment on April 24, 2006 following a public hearing. The City Council held first reading of the rezoning on May 9, 2006 and a public hearing on the PUD plan amendment and rezoning on June 13, 2006. E. The City's zoning ordinance provides criteria for approving a PUD plan and rezoning of property to a planned unit development. The City Council finds that the PUD plan and rezoning of property in the subject area meets the criteria in the following ways: 1. The proposed development conforms with the goals and objectives of the City's Comprehensive Development Plan and any applicable redevelopment plans: a) The project area is designated Regional Commercial/Office and the proposed development is consistent with this designation. b) An objective of the Comprehensive Plan is to "advocate and support with municipal investment a high quality visual environment throughout the City and particularly along major transportation corridors." I Co - d... The PUD plan and rezoning are consistent with this objective. c) The PUD plan and rezoning are also consistent with the following goal of the Comprehensive Plan: "Provide an economic climate within Richfield that will encourage the availability of quality goods, services and employment opportunities for residents." d) The PUD plan and rezoning are consistent with the Comprehensive Plan goal to, "Promote diverse development that will broaden the tax base while reinforcing the residential character of Richfield," and with its accompanying objective, "promote development that can support itself and broaden the tax base." e) The PUD plan and rezoning are consistent with the following Comprehensive Plan objective: "Promote Richfield's locational advantage within the greater metropolitan area." f) The PUD plan and rezoning are consistent with the Comprehensive Plan objective to "address the means to improve the visual quality throughout the City, concentrating on design districts and transportation corridors, beginning with land use coordination." g) The PUD plan and rezoning are consistent with the description of the Cedar Avenue Corridor plan that states as follows: "The intersection of East 66th Street and Cedar Avenue would afford the opportunity to attract a major regional commercial use such as a regional retail center." 2. The proposed development is designed in such a manner as to form a desirable and unified environment within its own boundaries: The project is designed to create a commercial development setting for Target and Home Depot and numerous other commercial tenants. The buildings and site development are all part of one unified development. 3. The development is in substantial conformity with the purpose and intent of the original C-2 zoning district, and departures from the original district regulations are justified by the design of the development. a) The building setbacks exceed the setbacks required in the C-2 district, with the exception of the setback to 66th Street, which is 10 feet instead of 35 feet. The reduced setback is in accord with the Cedar Avenue Corridor Redevelopment Concept Master Plan goal of creating a unique urban experience. The final development plan contemplates smaller individual buildings close to the street, which fulfills the design goal of the Master Plan. 1~-3 b) With the exception of the tower element on the most southerly building, the building height is lower than the maximum height allowed in the C-2 district. The tower element is only 10 feet higher and provides an architectural feature and design element that adds interest and balance to the building. The design mimics elements from the nearby airport, allowing the development to fit in with the surrounding environment. The entire development is below the maximum height required by Joint Airport Zoning Board regulations. c) The development provides greater parking area setbacks than would apply in the C-2 district. d) The development has slightly greater impervious surface coverage than would be allowed under the C- 2 district, if no consideration is given to the off-site ponding area that the developer will improve and utilize. When the ponding area is included, the development is slightly below the maximum impervious surface coverage that would be allowed in the C-2 district. e) The development will include 1,527 parking stalls, which is approximately 92 percent of the number of stalls that would be required under the City's parking standards. The reduction in parking stalls is acceptable because of the transit-oriented nature of the development. It is expected that many shoppers and employees will use modes of transportation other than cars. Shared parking and differences in peak parking needs for the different businesses are also expected to reduce the parking demand. 4. The development will not create an excessive burden on parks, schools, streets, or other public facilities and utilities which serve or are proposed to serve the development: Transportation improvements are proposed to accommodate traffic from the development and to improve existing traffic problems in the area at 66th Street and Trunk Highway 77. A regional stormwater pond is being added to the development to accommodate this development and future development south of 66th Street and 17th Avenue. With the improvements, there are sufficient utilities to serve the development. 5. The development will not have undue adverse impacts on neighboring properties: Transportation improvements are proposed to accommodate traffic from the development. Site features are planned to minimize visual impacts from the development on neighboring properties. The final development plan provides details regarding landscaping and lighting, which are designed to minimize the impacts of the development on neighboring properties. 1(, -~' 6. The terms and conditions proposed to maintain the integrity of the plan are sufficient to protect the public interests: A final development plan, which establishes the terms and conditions of the development, is required before construction can commence. The EAW was determined to be adequate by the City Council on March 28, 2006. Section 2. Appendix 1 of the zoning ordinance code of the City of Richfield entitled "Richfield Zoning Code: Boundaries of Zoning Districts" is hereby amended: A. Section 1, Paragraph (7) is repealed. B. Section 1, Paragraph (8) is repealed. C. Section 3, Paragraph (42) is repealed. D. Section 3, Paragraph (52) is repealed. E. Section 3, paragraph (75) is amended to read as follows: (75) M-3 (Bloominqton to Cedar Avenues and East 66th Street) That area lying between the center lines of Bloomington Avenue and the west lines of Block 3, Iverson's 2nd Addition and Block 5, Iverson's 3fG Addition, Cedar N.'enues, and between the center line of 66th Street and a line distant 250 feet northerly thereof and parallel thereto, and the north 20 feet of Lot 8, Block 12, Nokomis Gardens Rearrangement of Blocks 7, 11, and 12, Girard Parkview. (Added, Bill No. 2000-11) F. Section 7, Paragraph (12) is added to read as follows: (12) M-3 (NW Corner of 66th Street and Cedar Avenue) That area Ivinq between the center line of 17th Avenue and the west riqht-of- way line of Trunk Hiqhwav 77, and between 63rd Street and the center line of 66th Street. excludinq Lots 1, 2, 16, and 17, and Block 6, Iverson's Second Addition, and Lots 6, 7, and 8, Block 3, Iverson's Third Addition, and includinq Block 3 of Iverson's Second Addition and Block 5 of Iverson's Third Addition extended to the center line of 66th Street. Section 3. This amendment constitutes a rezoning of the following properties: R to PC-2: 6315, 6321, 6327, 6333, 6339, 6345 17th Avenue South, 6401,6409,6415,6421,6427,6433,6439, 644517th Avenue South, 6500-6527 17th Avenue South, 6314-6527 18th Avenue South. C-2 to PC-2: 6532 and 6533 17th Avenue South, 1614 66th Street East, 1620 66th Street East, 6532 and 6533 18th Avenue South, 1700 66th Street East, 1708 66th Street East, 1714 66th Street East, 1720 66th Street East, 1800 66th Street East, 1820 66th Street East, 6500, 6520, 6528 Cedar Avenue South. Ie;, ~ 5' I to PC-2: 6300, 6328, 6344, 6400, 6412, 6444 Cedar Avenue South Section 4. This ordinance shaii become effective on the later of the f-ollo'Ning d::ltos: fa) 30 days after publication of the ordinance. or (b) upon such I::1ter date ::lS the City Attorney certifies to the City Clerk th::lt all of the properties to be rezoned by this ordinance are held in oommon ownership or control. For purposes of this ordin::lnce, properties that ::lre not held in common o':mership by ::l private property O'Nner shall be deemed to be held in common control if the properties ::lre owned by either the City of Riohfield or the Housing ::lnd Redevelopment I\uthority in ::lnd f-or the City of Richfield and if those public entities h::lve given final ::lpproval of agreements or ordinances that ::luthorize the tr::lnsfer of the City and HR^ properties to the private property owner who owns the remaining properties affected by this ordinance; except that City approval of the transfer of those portions of City property that ::lre located within Outlot A of the proposed pl::lt of Ced::lr Point Commons is not required to demonstrate oommon oontrol under this ordin::moo. Section 5. The City Clerk is directed that this ordinance shall bear the same number as the previous ordinance. This ordinance replaces and supercedes the ordinance as adopted on June 13, 2006. Passed by the City Council of the City of Richfield, Minnesota this 27th day of June, 2006. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk I~-~ RESOLUTION NO. RESOLUTION AUTHORIZING A FINAL DEVELOPMENT PLAN AND CONDITIONAL USE PERMIT FOR THE CEDAR POINT COMMONS PROJECT WHEREAS, an application has been filed with the City of Richfield which requests approval of a final development plan and conditional use permit for a commercial development of 29.6 acres on land generally located between 17th Avenue and Trunk Highway 77 (TH 77) and 63rd and 66th Streets, legally described in Exhibit A; and WHEREAS, the Planning Commission held a public hearing on the request for a final development plan and conditional use permit on April 24, 2006 and voted unanimously to recommend approval; and WHEREAS, the Environmental Assessment Worksheet for the project has been found adequate; and WHEREAS, notice of the public hearing was published in the Sun-Current and mailed to property owners within 350 feet of the subject property on June 1, 2006; and WHEREAS, the City Council conducted a public hearing on the final ,development plan and conditional use permit on June13, 2006; and WHEREAS, the proposed commercial use is consistent with the goals, policies, and objectives of the City's Comprehensive Plan: A. The Comprehensive Plan Guide Plan designates the project area as Regional Commercial/Office and the proposed development is consistent with this designation. B. An objective of the Comprehensive Plan is to "advocate and support with municipal investment a high quality visual environment throughout the City and particularly along major transportation corridors." The proposed development is consistent with this objective. C. The development is also consistent with the following goal of the Comprehensive Plan: "Provide an economic climate within Richfield that will encourage the availability of quality goods, services and employment opportunities for residents." D. The development is consistent with the Comprehensive Plan goal to, "Promote diverse development that will broaden the tax base while reinforcing the residential character of Richfield," and with its accompanying objective, "promote development that can support itself and broaden the tax base." E. The development is consistent with the following Comprehensive Plan objective: "promote Richfield's locational advantage within the greater metropolitan area." F. The development is consistent with the Comprehensive Plan objective to "address the means to improve the visual quality throughout the City, concentrating on design districts and transportation corridors, beginning with land use coordination." I" <-7 G. The development is consistent with the description of the Cedar Avenue Corridor subarea plan that states as follows: "The proposal for the Corridor area between East 63rd Street and Diagonal Boulevard is proposed to be largely redeveloped to attract regional commercial and office." WHEREAS, the commercial use is consistent with any officially adopted redevelopment plans or urban design guidelines: A. A redevelopment project area has been established. The proposed project is consistent with that project area. B. The project area provides for the facilitation of redevelopment of land for the construction of commercial/retail development better suited to withstand airport noise. C. The project area provides modern transit stops with bus pullouts and landscaping. D. The project area provides newer designed, high-volume street intersections better able to control traffic and interface with pedestrian traffic. E. The project area provides for bikeways, pathways for non-vehicular traffic. F. The project are enhances streetscape with decorative concrete, pedestrian lighting, and landscape features. WHEREAS, the commercial use is or will be in compliance with the performance standards specified in Section 541 of this code: A. Lighting will provide adequate levels for safe use of parking areas. The lighting will meet City ordinance requirements for less than O.5-foot candles at any residential property line. One hour after store closings, only safety lighting will remain on. B. The development will include 1,521 parking stalls, which is approximately 92 percent of the number of stalls that would be required under the City's parking standards. The reduction in parking stalls is acceptable because of the transit-oriented nature of the development. It is expected that many shoppers and employees will use modes of transportation other than cars. Shared parking and differences in peak parking needs for the different businesses are also expected to reduce the parking demand. C. Several traffic improvements are planned in the vicinity of the development, including a new roundabout at 1 ih Avenue and 66th Street and improvements to TH 77 and 66ths Street. Those improvements, which have received necessary approvals, will accommodate the traffic of the development as well as future development south of 66th Street. The development includes transit-oriented elements, including bus pull-outs on 66th Street, twenty-foot sidewalks throughout the development to allow for comfortable walking and strolling space for shoppers, and bike racks to be located throughout the development to allow shoppers and employees the choice of using alternative modes of transportation to the development. The project will be accessible by foot, public transportation, bicycle, and motor vehicle. D. The City Zoning Ordinance requirements for landscaping are exceeded by the proposed landscaping plan. The developer will provide trees of 3 % inch and 4 inch caliper, where the code requires only 2-% inch caliper. It, - :8 Shade trees will be planted along the perimeter every 30 feet as required by code. The development will include approximately 462 trees, where the code requires only 329 trees. The east side of 1 in Avenue has a 27- foot wide berm that will be planted with multiple layers of over-story and ornamental trees and shrubs from 65th Street to 64th Street to separate the parking from the street and minimize the intrusion of headlights into the neighborhood. From 64th Street to 63rd Street the berm will turn to a heavily landscaped edge with evergreen shrubs for year-round screening. E. Trash will be accommodated inside the truck wells of Home Depot and SuperTarget. Trash will be accommodated inside the buildings for all other buildings. F. Electrical and utility service lines will be installed underground. G. The west elevation of the SuperTarget and Home Depot buildings and the south elevation of the SuperTarget building will use a concrete block material that looks like brick. The building materials on the other buildings will include the concrete block material, metal panels and glass, and the architecture for the buildings is four-sided architecture. H. Roof-top mechanical equipment will not be visible from surrounding roadways, and if it is found to be visible all roof-top mechanical equipment will be screened with like material of the building(s) and approved by the Community Development Department. I. The development complies with the City's surface water management plan. The developer will construct a regional pond in the MnDOT right-of- way that is located to the north of Cedar Point Commons and to the west of TH 77. The regional pond will be designed and constructed to retain and treat stormwater runoff for 130 acres, including the 3D-acre Cedar Point Commons development as well as future runoff from the west of 17th Avenue and portions to the south of 66th Street in the Cedar Avenue Corridor. The stormwater design takes advantage of the soil conditions that will allow infiltration of stormwater. The majority of the storm sewer will be perforated pipe to allow water to be dispersed throughout the site as the water flows to the pond. The developer has also included a water infiltration landscape area in the parking lot between SuperTarget and Home Depot as a way to reduce stormwater runoff. WHEREAS, the commercial use will not have undue adverse impacts on governmental facilities, utilities, services, or existing or proposed improvements: There are adequate facilities, utilities and services to support the development. With the proposed improvements as identified in the Environmental Assessment Worksheet, there will be adequate roadways to serve the development; and WHEREAS, the commercial use will not have undue adverse impacts on the public health, safety, or welfare: A. The development is designed to be pedestrian-friendly and transit- oriented, and planned traffic improvements will accommodate additional traffic generated by the development. B. The development includes a screen wall approximately 800 feet in length along TH 77. The wall will screen almost all delivery activity behind Home Depot and SuperTarget. Complementary plantings will blend with the screen wall and architectural facades. /" - '7 C. The development includes significant landscaping to provide a buffer and screening from residential development to the west. D. The developer has consulted with a noise consultant to mitigate the noise impacts on the development caused by the neighboring airport. The developer has incorporated several features into its development in order to mitigate noise, including: orientating the site to the west, away from the airport; locating the majority of doors to face north, south and west, away from the airport; limiting the number of windows facing east - only.02% of all the building facades is comprised of windows; and using building materials (other than windows) that reduce noise levels so as to meet applicable noise standards; and WHEREAS, there is a public need for such use at the proposed location; the Comprehensive Plan description of the Cedar Avenue Corridor plan states as follows: "The intersection of East 66th Street and Cedar Avenue affords the opportunity to attract a major regional commercial use such as a regional retail center;" and WHEREAS, the commercial use meets or will meet all the specific conditions set by this code for the granting of a final development plan and conditional use permit; and WHEREAS, the City has fully considered the request for approval of the final development plan and conditional use permit; and NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota, as follows: 1. The City Council adopts as its Findings of Fact the WHEREAS clauses set forth above, and all the facts set forth in the Background Section of City Council Report No. 2. A final development plan and conditional use permit are approved for a commercial use as described in City Council Report No. _' on the Subject Property legally described in Exhibit A. 3. The final development plan and conditional use permit are subject to completing the following conditions before being issued: Ongoing Conditions and Requirements 1) The site shall be developed and maintained in substantial conformance with the following plans, unless modified by the conditions below a) Site Plan, dated 6/1/06 b) Elevations, i) Target, including wall signs and roof logo, dated 3/20/06 ii) Home Depot, including wall signs, dated 1/20/06 iii) Retail Building, dated 4/4/06 iv) Outbuildings, dated 3/31/06 c) Building materials, dated 2/27/06 d) Grading Plan, dated 6/1/06 e) Utility Plan, dated 6/1/06 f) Lighting Plan, dated 6/1/06 g) Landscaping Plan, dated 6/1/06 h) Removals Plan, dated 6/1/06 i) Traffic Signage and Striping Plan, dated 6/1/06 1& -/CJ j) Project signs, dated 4/27/06 and 3/31/06 k) Cedar Point Operations, Appendix A 2) Uses not allowed in the planned unit development include: stereo installation, taxi or limousine service, vehicle parts store, tree trimming services, assembly, light manufacturing, and warehouse, auto or boat sales/leasing, service stations, auto detailing, car washes, public-mechanical garage, and public-auto body garage. 3) Future buildings and additions require major planned unit development amendment. 4) Design of future buildings shall be similar to SuperTarget and Home Depot. 5) Maximum height of buildings should be 100 feet (based on Minneapolis-St. Paul International Airport Zoning Ordinance). 6) The property owner is responsible for replacing any required landscaping that dies. 7) Propertv owner and tenants are responsible for ensuring all appropriate and reasonable measures are taken so that shoppinQ carts will stay on the property. 8) Concrete commercial driveway aprons required at all entrances between public streets/ private & City property. 9) Trash containers shall be stored inside buildings or within the Target or Home Depot truck wells. 10) Plans approved by City Council are subject to any changes set forth by required code compliance and policy. 11)Buildings shall be constructed to meet noise standards set forth in the report of Orfield, dated May 18, 2005. Improvements for noise shall include: a) Orientation of the entire site to the west. b) Majority of all doors in the development face north, south, and west. Away from the north-south runway. c) Cedar Point Commons building materials meeting all Orfield requirements, except windows. 12)During construction, 17th Avenue and 66th Street must be kept free of debris and sediment, and the tree protection fencing and erosion control fencing must be maintained. Before the issuance of the Final Development Plan and Conditional Use Permit 1) If applicable, evidence of watershed district approval. 2) The developer must provide to the City Attorney for review a declaration of covenants or similar instrument that provides for common access and shared parking consistent with the development plan and that provides for ongoing maintenance of property. Before issuance of demolition permits 1) Installation of tree preservation fencing according to approved tree protection plan, wetland protection fencing, temporary rock driveways and erosion control measures. 2) Attend a pre-construction meeting. Before issuance of a grading permits 1) Submit construction-parking plan for Public Works review and approval. 2) Submit Sanitary Sewer Extension permit from MPCA. 3) Submit NPDES Permit - Construction Stormwater - from MPCA. 4) Purchase wetland banking credits for stormwater pond. /~-// 5) Submit wetland replacement permit from Corps of Engineers. 6) Submit encroachment permit for grading from MnDOT. 7) Submit watermain extension approval and well-closure permit from Department of Health. 8) Submit permit for connection to interceptor sewer from Met Council. 9) Submit tax abatement county funding approval. 1 O)Submit revised site plans with the following changes for staff review and approval: a) Sidewalks should be at least 6 feet wide only if there is at least 4 feet of landscaping between the curb and sidewalk for snow storage, otherwise sidewalks should be at least 10 feet. b) Add bollards in front of Home Depot between sidewalk and parking lot. c) Add trash containers in front of out buildings' entrances to the stores. 11)Submit revised removals plan with the following note: "Removal of structures shall be permitted by the City of Richfield." The City of Richfield will require the removal of watermain and related structures by Ryan, but the watermain remains property of the City and the City will recycle the watermain. The City will take hydrants for spare parts. The City may also salvage signs and streetlights. Any utility or structure not taken by the City for salvaging or recycled will need to be disposed of by the contractor. 12)Submit revised utility plans for staff review and approval with the following change: add "and all requirements and standards of the City of Richfield" to all utility notes mentioning construction shall conform to standard specifications. 13)Submit irrigation plan for staff review and approval. 14)Submit a final stormwater management plan to and approved by the Public Works Director. 15)Submit a final plan for walkways and sidewalks, both public and private, for review and approval by staff. 16)Submit financial escrow to ensure compliance with grading and erosion control plans. The city will not release the letter of credit or cash escrow until the developer submits as-built drawings and a letter certifying that the utilities and grading have been completed according to the plans approved by the city. 17)AII concrete work on the right-of-way must be inspected by the City's Engineering Department prior to pouring the concrete. A 24-hour notice is req u ired. Before issuance of a building permit(s) 1) Submit performance surety for landscaping for 100% of the value. 2) Submit building samples to ensure color coordination. 3) Submit maintenance agreement for public improvements and a copy of the maintenance agreement for the private property. a) Maintenance Agreement shall include clarification on maintenance of landscaping and snow removal on 66th Street and 17th Avenue. b) Maintenance agreement shall clarify responsibility of temporary maintenance of landscaping in the roundabout and medians on 66th Street and 17th Avenue. 4) Submit MnDOT approval of landscaping plan along TH 77. 5) Submit amenities plan with benches with backs for staff review and approval. 6) Submit design of Home Depot's cart corrals. 7) Submit revised lighting plan for staff review and approval with the following changes: /~ -/~ a) Show lighting effects on the building elements, particularly the trellises, fins and signs. b) Have sufficient light levels at entrance from 17th Avenue. c) Have the circuits for lights along 66th Street and 17th Avenue separate from site lighting. d) Use high-pressure sodium lights along public streets. e) Provide manufacture cut sheets for lighting fixtures. f) All wall packs shall be shielded. 8) Submit revised building elevations for staff review and approval with the following changes: a) Removing the Home Depot lettering on the fins on the east fac;ade. b) Reducing the lettering of the Home Depot sign on the north fac;ade from five feet to four feet. 9) Submit hook-up fees for SAC and WAC. 1 O)Submit roof top plan and cross section elevations demonstrating roof top equipment on all buildings will be screen from the public right-of-way. 11 )Submit recorded copy of this resolution. Before issuance of occupancy permit(s) 1) Receive approval and record final plat. 2) Provide staff a copy of cross access and parking agreements between lots. 3) Complete all work within 17th Avenue and 66th Street right-of-way. 4) Mill and overlay of 17th Avenue. On other streets that are to be paved, paving needs to be stopped perpendicular to the curbline. 65th Street, 17th and Cedar Avenue show stepped patches, pave street full width up to furthest extent of patching. 5) Need to screen or paint service doors, mechanical equipment and gas and electrical meter boxes to match wall color. 6) Approval does not include the signs shown on the drawings. Separate sign permits are req u ired. 7) Target logo on roof must receive approval from City Council. The City Council must deem the site as an unusual location. 8) The developer must provide evidence satisfactory to the City Attorney that the declaration of covenants establishing access and parking rights and maintenance obligations, as approved by the City Attorney, has been recorded against the property and is enforceable against all entities that hold interests in the property. 4. The final development plan and conditional use permit shall remain in effect for so long as conditions regulating it are observed, and the conditional use permit shall expire if normal operation of the use has been discontinued for 12 or more months, as required by the Zoning Ordinance, Section 546.05, Subd. 9. 5. This resolution shall be effective upon the rezonina of the properties in accordance with Transitory Ordinance No 6. The City Clerk is directed that this resolution shall bear the same number as the previous resolution. Adopted by the City Council of the City of Richfield, Minnesota this 27th day of June, 2006. This resolution replaces and supercedes the resolution as adopted on June 13,2006 ATTEST: Nancy Gibbs, City Clerk / h - /3 Martin J. Kirsch, Mayor It, -/y Exhibit A Legal Description That part of the following described parcels of land: Lots 1-6, Block 3; and Lots 1-12, Block 4; and Lots 1-16, Block 5; and Lots 3-8 and Lots 9- 14, Block 6; all in IVERSON'S SECOND ADDITION; and Lots 1-14; Block 1; and Lots 1- 14, Block 2; and Lots 1-5 and Lots 9-14 and the Southerly 25 feet of Lot 6, Block 3; and Lots 1-4, Block 4; and Lots 1-2, block 5; all in IVERSON'S THIRD ADDITION; and Lots 1- 10, Block 5; and Lots 1-12, Block 8; and Lots 3-12, Block 15; all in the NEW FORD TOWN; according to the recorded plats thereof, Hennepin County, Minnesota /!,. -/6 RESOLUTION NO. RESOLUTION APPROVING SUMMARY PUBLICATION OF BILL NO. 2006- WHEREAS, the City has adopted the above referenced amendments to the Richfield City Code; and WHEREAS, the verbatim text of the amendments is cumbersome, and the expense of publication of the complete text is not justified; and WHEREAS, the Council has determined that the following summary will clearly inform the public of the intent and effect of Bill No. 2006- NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Richfield, Minnesota, that the city clerk shall cause the following summary of Bill No. 2006- to be published in the official newspaper in lieu of the entire ordinance: SUMMARY PUBLICATION BILL NO. 2006-_ AN ORDINANCE AMENDING APPENDIX 1 OF THE RICHFIELD CITY CODE, ESTABLISHING THE REZONING OF CERTAIN PROPERTIES WITHIN THE CEDAR POINT DEVELOPMENT This summary of the ordinance is published pursuant to Section 3.12 of the Richfield City Charter. The 'ordinance rezones the properties that lie within the following described area: beginning at the intersection of 63rd Street and TH 77; then south along the TH 77 right-of-way to 66th Street,; then west to the westerly line of Lots 1 through 6, Block 3 of the Iverson's Second Addition and Lot 2, Block 5, Iverson's Third Addition , then north to 65th Street and then proceeding north along the easterly right of way line of 17th Street, and proceeding to 63rd Street, and connecting to the intersection of 63rd Street and TH 77 to PC-2, Planned General Commercial zoning district. In general, the properties rezoned to Planned General Commercial are located adjacent to east-west collector street that will retain access to TH 77. The ordinance is effective 30 days after publication. Copies of the ordinance are available for public inspection in the City Clerk's office during normal business hours or upon request by calling the Department of Community Development at (612) 861-9760. A map showing the new zoning district boundaries, as well as a list of the addresses of properties that are being rezoned, can be obtained from the Department of Community Development. This publication supercedes the publication made on June 21, 2006. /&-/? Isl Nancy Gibbs, City Clerk BE IT FURTHER RESOLVED, that the city clerk is directed to keep a copy of the ordinance in her office at city hall for public inspection and to post a full copy of the ordinance in a public place in the City for a period of two weeks. Adopted by the City Council of the City of Richfield, Minnesota this 13th day of June, 2006. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk AGENDA SECTION: AGENDA ITEM # REpORT # PROPOSED ORDINANCE 17 143 STAFF REpORT CITY COUNCIL MEETING JUNE 27, 2006 REpORT PREPARED By: CHRISTINE COSTELLO, COMMUNITY DEVELOPMENT SPECIALIST NAME. TITLE COUNCIL PRESENTER: DEPARTMENT DIRECTOR REVIEW: 0' REVIEWED BY CITY MANAGER: ITEM FOR COUNCIL CONSIDERATION: Reconsideration and modification of Transitory Ordinance NO.18.37 vacating rights-of-way in the Cedar Point Commons pro'ect area, 1. RECOMMENDED ACTION: By Motion: Approve a modification to the Transitory Ordinance vacatin ri hts-of-wa in the Cedar Point Commons pro.ect area. I II. BACKGROUND I On June 13, the City Council approved a transitory ordinance providing for the vacation of the rights-of-way in the Cedar Point Commons project. Since the approval on June 13, the City Attorney has determined that a modification is needed to the transitory ordinance. The modification appears in Section 7 of the ordinance, It simply provides a direct role for the City Attorney in effectuating the certification of the vacations and the certifications may be done street section by street section rather than all at one time. The proposed modification does not change any other item in the transitory ordinance. 062706-Cedar Point ROW Vacation Resolution Revision I III. BASIS OF RECOMMENDATION I I A. POLICY I · Any modifications made to the transitory ordinance requires City Council approval. I B. CRlTICAL ISSUES I · The modification does not alter or remove any of the conditions originally approved at the June 13 City Council meeting. I C. FINANCIAL . N/A I D. LEGAL I · Legal counsel revised the proposed modification to the transitory ordinance. I IV. ALTERNATIVE RECOMMENDATION(S) I · Approve the modification to the transitory ordinance. · Deny the modification to the transitory ordinance with a finding that the proposed changes would have a negative impact on surrounding properties or the City as a whole. · Delay approval of the modification. I V. ATTACHMENTS . Transitory Ordinance I VI. PRlNCIPALPARTIES EXPECTED AT MEETING I · A representative from Ryan Companies US, Inc. I '7-1 BILL NO. TRANSITORY ORDINANCE NO. AN ORDINANCE VACATING STREET RIGHT-OF-WAY EASEMENT (Cedar Point Commons) THE CITY OF RICHFIELD DOES ORDAIN: Section 1: The following described land is subject to an easement for public right-of-way purposes: All that part of 17th Avenue South as dedicated in the pat of Iverson's Third Addition, according to the recorded plat thereof, Hennepin County, Minnesota, accruing to Lot 1, Block 5 and to Lot 4, of said Iverson's Third Addition. All that part of 17th Avenue South as dedicated in the plat of Iverson's Second Addition, according to the recorded plat, thereof, Hennepin County, Minnesota, accruing to Lots 1 through 6 inclusive, Block 3, and to Lots 1 through 6, Block 4, of said Iverson's Second Addition. All that part of 18th Avenue South as dedicated in the plat of Iverson's Third Addition, according to the recorded plat thereof, Hennepin County, Minnesota, accruing to Lot 1 Block 4,and to Lot 14, Block 1, of said Iverson's Third Addition. All that part of 18th Avenue South as dedicated in the plat of Iverson's Second Addition, according to the recorded plat thereof, Hennepin County, Minnesota, accruing to Lots 7 through 12 inclusive, Block 4, and to Lots 9 through 16 inclusive, Block 5, and to Lots 9 through 14, Block 6, of said Iverson's Second Addition. All that part of 18th Avenue South as dedicated in the plat of Iverson's Third Addition, according to the recorded plat thereof, Hennepin County, Minnesota, accruing to Lots 7 through 12 inclusive, Block 1, and to Lots 7 through 14 inclusive, Block 2, and to Lots 9 through 14, Block 3, of said Iverson's Third Addition. All that part of Cedar Avenue South, as dedicated in the plat of Iverson's Third Addition, accordinQ to the recorded plat, thereof, Hennepin County, Minnesota, accruinQ to Lots 1 throuQh 6 inclusive, Block 1, and to Lots 1 throuQh 6 inclusive, Block 2 of said Iverson's Third Addition. All that part of Cedar Avenue South, as dedicated in the plat of Iverson's Third Addition, accordinQ to the recorded plat, thereof, Hennepin County, Minnesota, accruinQ to Lots 1 throuQh 5 inclusive, Block 3, and the southerly 25 feet of Lot 6, Block 3, of said Iverson's Third Addition. / 1- J. All that part of Cedar Avenue South, as dedicated in the plat of New Ford Town, according to the recorded plat, thereof, Hennepin County, Minnesota, accruing to Lots 1 through 10 inclusive, Block 1, and to Lots 1 through 12 inclusive, Block 8 of said New Ford Town. All that part of Cedar Avenue South, as dedicated in the plat of New Ford Town, according to the recorded plat, thereof, Hennepin County, Minnesota, accruing to Lots 3 through 12 inclusive, Block 15, of said New Ford Town. All that part of 65th Street East, as dedicated in the plat of New Ford Town, according to the recorded plat of New Ford Town, according to the recorded plat, thereof, Hennepin County, Minnesota, accruing to Lot 1, Block 1, and Lot 12, Block 8, of said New Ford Town. All that part of 64th Street East, as dedicated in the plat of new Ford Town, according to the recorded plat thereof, Hennepin county, Minnesota, accruing to Lot 1, Block 8 and Lot 12, Block 15, of New Ford Town All that part of 65th Street East, as dedicated in the plat of Iverson's Third Addition, according to the recorded plat thereof, Hennepin County, Minnesota, accruing to Lot 6 and 7, Block 1, and Lots 1 and 14, Block 2, of said Iverson's Third Addition. All that part of 64th Street East, as dedicated in the plat of Iverson's Third Addition, according to the recorded plat thereof, Hennepin County, Minnesota, accruing to Lots 6 and 7, Block 2, and Lots 1 and 14, Block 3, of said Iverson's Third Addition. All that part of 65th Street East, as dedicated in the plat of Iverson's Second Addition, according tot he recorded plat thereof, Hennepin County, Minnesota, accruing to Lots 1 and 12, Block 4, and Lots 8 and 9, Block 5, of said Iverson's Second Addition. All that part of 64th Street East, as dedicated in the plat of Iverson's Second Addition, according to the recorded plat thereof, Hennepin County, Minnesota, accruing to Lots 1 and 12, Block 5, and Lots 8 and 9, Block 6, of said Iverson's Second Addition. For purposes of this Ordinance, the lands are designated as the "Vacation Area." Sec. 2: The City of Richfield has initiated the vacation of the Vacated Area. Sec. 3: There is no public need for a street easement over the Vacation Area. Sec. 4: There are existing utility lines within a portion of the Vacated Area, and there will not be a continuing need for easements for utility purposes over the Vacation Area, once the existing utility lines are relocated. 11- :!:> Sec. 5: Upon the effective date as provided in section 7 below, the public street easement encumbering the Vacation Area is vacated. Sec. 6. The City of Richfield held the first reading on May 9,2006, and set the date for the second reading for June 13, 2006. Legal notice was published in the Sun-Current on June 1, 2006. Sec. 7: This ordinance shall become effective on the later of the following dates: (a) 30 days after publication of the ordinance; or (b) upon such later date as the City Attorney makes the certifications(s) provided in this section. The City Attorney may make a separate certification as to the vacation of the streets or portions or seoments of the streets covered by this ordinance. The certification(s) shall be made to the City Clerk and shall certify that the streets. portions or seoments thereof to be vacated are no lonoer required to provide access to occupants of abuttinq properties.certifies to the City Clerk that all of the properties to be r~zoned by this ordinanc~ ar~ held in common own~rship or control ~nd r~pl~cem~nt easements htwe be~n provjded for the relocated Iltilities For pllrpos~s ofthis ordil1ance, prop~rties that are not held in COmmOI1 ownership by a private prop,:orty owner shall be deemed to be held in commol1 control if the properties ar~ O'Afl1erl by eitl1er tile City of Richfield or the 1-101 Ising ~nd Redevelopmel1t A'lthority in and for the City of Richfield and if those p"bHc entities have given fil1al approval of a!]reel'Y1ents or ordinances thet a11thorize the transf,:or of the City and HRA propE'rtiec:: to th~ private property owner wl10 owns the rel'Y1aining properties 81ff~cted by this ord;n~nc~: excApt thet City arprov~1 of tile transfer of those portions of City property that ere 10catE'd w,thin ClltlOt A of the proposed plat of Cedar Point Commons is not req'lired to demonstrate commnn cnntrol Ilnder this nrdinel1ce Sec. 8: The City Clerk is directed to prepare a certificate of completion of vacation proceedings and to record the vacation in the office of the Hennepin County Registrar of Titles or Hennepin County Recorder, at the time that the City Attorney provides the certification required by section 7 of this ordinance. Sec. 9: The City Clerk is directed that this transitoryordinance shall bera the same number as the previous transitory ordinance on this matter. Passed by the City Council of the City of Richfield, Minnesota this June 27,2006. Martin J. Kirsch, Mayor ATTEST: Nancy Gibbs, City Clerk