11-13-06 Special
CITY OF RICHFIELD, MINNESOTA
MONDAY, NOVEMBER 13,2006
SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HAll
COUNCil CHAMBERS
6700 PORTLAND AVENUE
5:00 P.M.
AGENDA
Call to order
Roll call
1. Consideration of resolution approving fifth amendment to contract for private development
with Ryan Companies US, Inc. for Cedar Point Commons
Staff Report No. 82
Notes:
2. Any other actions necessary in connection with Cedar Point Commons project
Notes:
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 ITEM # 1
REpORT # 82
......
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
NOVEMBER 13, 2006
REpORT PREPARED By:
PAT SMITH, COMMUNITY DEVELOPMENT
MANAGER
NAME, TITLE
REpORT PRESENTER:
PAT SMITH, COMMUNITY DEVELOPMENT
MANAGER
DEPARTMENT DIRECTOR REVIEW:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution approving the Fifth Amendment to the Contract for Private
Development with Ryan Companies US, Inc. for Cedar Point Commons.
I. RECOMMENDED ACTION:
By Motion: Adopt the attached resolution approving the Fifth
Amendment to the Contract for Private Development with Ryan
Companies US, Inc. for Cedar Point Commons.
I II. BACKGROUND" I
On July 27,2005 the Housing and Redevelopment Authority (HRA) entered into a
Contract for Private Development (Contract) with Ryan Companies US, Inc. (Ryan).
. On June 20, 2006 the HRA approved the First Amendment to the
Contract.
. On July 21, 2006, the HRA approved the Second Amendment to the
Contract. ,
. On August-16, 2006, the HRA approved the Third Amendment to the
Contract.
. On October 25, 2006, the HRA approved the Fourth Amendment to the
Contract.
111306 - Ryan Contract 5th Amend
Ryan is now proposing a Fifth Amendment to the Contract.
Home Depot is requesting the Business Subsidy Agreement be amended in order to
make the document more understandable and readable. The proposed changes
are not substantive changes. As written, the Business Subsidy Agreements require
Target and Home Depot to report the .business subsidies goals and results each
year to the HRA. The proposed Fifth Amendment transfers this requirement from
Home Depot and Target to Ryan.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. On July 27, 2005 the HRA entered into a Contact for Private
Development with Ryan.
. The HRA has consistently taken actions to support Cedar Point
Commons.
I B. CRITICAL ISSUES I
. The First Amendment is written so that any change to the Business
Subsidy Agreement form requires an amendment to the Contract,
even if the change is unsubstantial.
I C. FINANCIAL
. N/A
I D. LEGAL I
. HRA legal counsel drafted the resolution.
I IV. ALTERNATIVEREcOMMENDATION(S) I
. Approve the Amendment with changes.
. Do not approve the Amendment.
I V. ATTACHMENTS I
. Resolution approving the Fifth Amendment to the Contract
. Fifth Amendment to the Contract
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. John Dean, HRA legal counsel
1--1
HRA RESOLUTION NO.
RESOLUTION APPROVING FIFTH AMENDMENT
TO CONTRACT FOR PRIVATE DEVELOPMENT
WHEREAS, the Housing and Redevelopment Authority ("the HRA") and Ryan
Companies, US, Inc. ("Ryan") did on or about July 27, 2005, enter into an agreement
entitled, Contract for Private Development (the "Contract"), calling for the redevelopment of
an area of land (the "Property") lying within the City of Richfield; and
WHEREAS, the HRA approved the First Amendment to the Contract on or about
June 30, 2006; and
WHEREAS, the HRA approved the Second Amendment to the Contract on or about
July 21,2006; and
WHEREAS, the HRA approved the Third Amendment to the Contract on or about
August 16, 2006; and
WHEREAS, the HRA approved the Fourth Amendment to the Contract on or about
October 25,2006, and
WHEREAS, events subsequent to the Fourth Amendment have occurred that
require the amendments to the Contract for the project to move forward; and
WHEREAS, the parties desire to address such matters through certain
amendments to the Contract; and -
WHEREAS, the. HRA has reviewed and is familiar with the proposed amendment to
the Contract entitled: Fifth Amendment to Contract for Private Development ("Fifth
Amendment"), and is satisfied that the terms thereof carry out the intentions of the parties,
and are necessary and appropriate for the Development.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
1. The proposed Fifth Amendment is hereby in all respects approved.
2. The Chair and Executive Director are directed to execute the Fifth
Amendment in substantially the form presented, and to take all steps and do
all things necessary to effectuate the provisions of the Fifth Amendment.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 13th day of November, 2006.
Suzanne M. Sandahl, Chair
ATTEST:
Donna Drummond, Secretary
111306 - Ryan Contract 5th Amend
I" :J
11/07/06
FIFTH AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT
This Fifth Amendment to Contract for Private Development (this "Fifth Amendment")
is entered into as of this 13th day of November, 2006, by and between 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 ("Developer").
RECITALS
A. The HRA and Developer entered into that certain Contract for Private
Development dated July 27,2005 (the "Original Agreement"), as amended by that certain First
Amendment to Contract for Private Development dated June 30, 2006 (the "First
Amendment"), that certain Second Amendment to Contract for Private Development dated
July 21, 2006 (the "Second Amendment"), that certain Third Amendment to Contract for
Private Development dated AugusU6, 2006 (the "Third Amendment"), and that certain Fourth
Amendment to Contract for Private Development dated October 25, 2006 (which Fourth
Amendment, together with the Original Agreement, the First Amendment, the Second
Amendment and the Third Amendment, are collectively referred to herein as the "Development
Agreement").
B. The HRA and Developer desire to amend the Development Agreement as set
forth in this Fifth Amendment.
C. Capitalized terms not otherwise defined herein shall have the meanings assigned
to them in the Development Agreement.
NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties hereby agree that the Development Agreement is
amended as follows:
1. Business Subsidy Agreement. The indented paragraph in Section 2 of the First
Amendment is amended by inserting the word "substantially" immediately before each of the
following phrases: (i) "the form of Exhibit F-2"; and (ii) "the form of Exhibit F-3."
2. Exhibits. Exhibit F-2 to the Development Agreement is deleted in its entirety and
replaced with Exhibit F-2 attached hereto, and Exhibit F-3 to the Development Agreement is
deleted in its entirety and replaced with Exhibit F-3 attached hereto.
3. Counterparts. This Fifth Amendment may be executed in any number of
counterparts, each of which shall be deemed to be an original and together which shall constitute
one and the same Fifth Amendment. This Fifth Amendment may be delivered by facsimile
transmittal or other electronic communication of signed original counterparts.
4. Amendment. Except as set forth herein, the Development Agreement shall
remain unmodified and in full force and effect.
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IN WITNESS WHEREOF, the parties have executed this Fifth Amendment effective as
of the day and year first above written.
HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF RICHFIELD, MINNESOTA
By
Its Chairperson
By
Its Executive Director
RYAN COMPANIES US, INC.
By
Its
4107402_1.DOC
110706
2
I,~
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" or
the "Authoritv"), and HOME DEPOT , a U.S.A.. Inc.. a Delaware
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 partiesHRA and
Develooer (as defined in Section 1.1.2) and dated as of July 27,2005, as amended by the
First Amendment to Contract for Private Redevelopment dated June 30, 200e (the
"Contract")2006. the Second Amendment to Contract for Private Develooment dated Julv
21. 2006. the Third Amendment to Contract for Private Develooment dated Amrust 16.
2006. the Fourth Amendment to Contract for Private Develooment dated October 25.
2006. and the Fifth Amendment to Contract for Private Develooment dated November
13.2006 (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 .\rticlethe Contract 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 (-1-:++1.1.7) below.
/
}/ 'J
1.1.5 If the goals described in clause (+:-l41.1.4) are not met, the Developer or
its successors and assigns must make the payments to the Authority described in Section
1.4.
1.1.6 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.
1.1.7 The Developer and its successors and assigns must continue operation of
the Home Depot Minimum ImpmvementsStore for at least five years after the date of
issuance of the Certificate of Completion for the Home Depot Minimum Improvements~
(as defined in Section 1.1.11 below). For the purpose~ of this SectionAlZreement, 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 or Home Deoot (or their resoective
successors or assilZlls) for use in its trade or business. For the purposes of this
AlZreement. soace will. be considered maintained in ooeration durinlZ oeriods of reoair.
reconstruction. remodelinlZ. renovation. Preparation for sales. takinlZ stock of inventory or
restockinlZ with inventory (whether or not ooen for business to the oublic durinlZ such
periods).
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 June 30, 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 Store Building, together with
parking, utilities and other site work necessary for the operation of the Home Depot Store
building, collectively 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 of this redevelopment effort. Accordingly, the wage andjob goals are set at zero.
1.3 Assignment and Assumption. The Developer has assigned aHcertain 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 c~mstruction of the Home Depot
Minimum Improvements within the time provided in Section 5.3 of the Contract, the
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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 ofthe Contract, but the Home Depot
Minimum. Impro~:ementsStore is not operatedmaintained in ooeration for at least five
years after the date of issuance of itsthe Certificate of Completion for the Home Depot
Minimum Improvements, then Home Depot shall repay the Authority a 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 vlritten report regarding
business subsidy goals and results by no later than March 1 of each year, commencing March 1,
2008 and continuiag until the later of (i) the date the goals stated Section 1(a)(4) life met; (ii) 30
days after e-xpiratioR of the five year period described in SeetioR 1 (a)(7); or (Hi) if the goals are
not met, the date the subsidy is repaid in aoeordance ":lith Section 1 (d). The report must comply
':lith Section 116J .994, subdi':ision 7 of the Business Subsidy ,^..ct. The Authority 'Nill proyide
information t-o Home Depot regarding the required forms. If Home Depot fails to timely file any
report required under this Section, the ,^.uthority vAll mail by certified mail return reeeipt
requested to Home Depot at a
warning within one VlCek after the required filing date. If, after 30 days after reeeipt of the
warning, Home Depot fails to provide a report, Home Depot must pay to the Authority a penalty
of $100 f-or eaeh subsequent day until the report is filed. Failure by the ,^..uthority to deli'ler a
timely warning notice ':,ill not relie',e Home Depot's obligation to pay a penalty within 30 days
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f., '(
after reeeipt of a flotiee to pay. The maximum aggregate penalty payable under this Seetion is
$1,OOO.Intentionallv omitted.
1.6 Release. The GityHRA 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 but the Authority shall have no rights or
remedies against Home Depot, except as set forth in this Agreement.
1.7 Countervarts. This A!.!1'eement mav be executed in anv number of countemarts.
each of which shall be deemed to be an orilZinal and tOlZether which shall constitute one and the
same AlZreement.
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IN WITNESS WHEREOF, the HRA and Dl:weloperHome Denot 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
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k~C
k1
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
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STATE OF
COUNTY OF
tr'fO
HOME DEPOT U.S.A.. INC.
By
Its
)
) SS.
)
The foregoing instrument was acknowledged before me this _ day of ,
2006 by , the of Rome Depot U.S.A.. Inc., a
Delaware corporation, on behalf of the corporation.
Notary Public
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f~l
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" or
the "Authoritv"), and TARGET CORPORATION, a Minnesota corporation (tfte.-"Target ").
1. 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 afld represent to eaeh etner as follows:
1.1.1 F or the purpose of this Agreement, the terms used in this Agreement
which are defined in the Contract for Private Development between the purtiesHRA and
Develoner (as defined in Section 1.1.2) and dated as of July 27,2005, as amended by the
First Amendment to Contract for Private Redevelopment dated June 30, 2006 (the
"Contraet")2006. the Second Amendment to Contract for Private Develonment dated Julv
21. 2006. the Third Amendment. to Contract for Private Develonment dated. AmIDst 16.
2006. the Fourth Amendment to Contract for Private Develonment dated October 25.
2006. and the Fifth Amendment to Contract for Private Develonment dated November
13.2006 (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 sueh f...rtielethe Contract 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 (h++1.1.7) below.
fJIY
1.1.5 If the goals described in clause (H41.1.4) are not met, the Developer or
its successors and assigns must make the payments to the Authority described in Section
1.4.
1.1.6 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.
1.1.7 The Developer and its successors and assigns must continue operation of
the Target Minim.um Im.pro'lementsStore for at least five years after the date of issuance
of the Certificate of Completion for the Target Minimum Improvements~ (as defined in
Section 1.1.11 below). For the purpose~ of this 8eetionA!!reement, 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 or Tar!!et (or their resoective successors or
assi!!ns) for use in its trade or business. For the ournoses of this A!!reement. soace will
be considered maintained in ooeration durin!! oeriods of reoair. reconstruction.
remodelin!!. renovation. oreoaration for sales. takin!! stock of inventory or restockin!!
with inventory (whether or not ooen for business to the oublic durin!! such oeriods).
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 June 30, 2006 (the "Developer Business Subsidy Agreement").
1.1.11 The Developer has commenced construction of the Target Store portion of
the Minimum Improvements (the Target Store Building, together with parking, utilities
and other site work necessary for the operation of the Target Store building, collectively
the "Target Minimum Improvements").
1.2 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.
1.3 Assignment and Assumption. The Developer has assigned, allcertain 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.
1.4 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.
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elJ
(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 eommeaeed 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 eommeaeed and completed
within the times provided in Section 5.3 of the Contract, but the Target Minimum
ImproyementsStore is not operatedmaintained in oneration for at least five years after the
date of issuance of itsthe Certificate of Completion for the Target Minimum
Improvements, then Target shall repay the Authority a portion of the Business 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 of five years from
the date of the failure or until Target satisfies its repayment obligation under this Section,
whichever occurs first.
1.5 Reports; Target must submit to the L^..uthority a 'mitten report regIKding business
subsidy goals and results by no later than MIKeh 1 of each yeIK, eommencing Mareh 1, 2008 and
continuing until the later of (i) the dute the goals stated Seetion 1(a)(1) are met; (ii) 30 days after
expiration of the fiye year period deseribed in Section 1(a)(7); or (Hi) if the goals are not met, the
date the subsidy is repaid in accordanee '/lith Section 1 (d). The report must comply with Seetion
116J.991, subdh'ision 7 of the Business S\:lbsidy L^"ct. The L^..uthority vrill provide information to
Target regarding the required f-orms. If Target fails to timely file any report required under this
Section, the i\.uthority vlill mail by certified mailret\:lffi receipt r-equested to Target at
a 'Naming "Within one ',veek after the
r-equired filing dute. If, after 30 days after reeeipt of the "yarning, Target fails to proyide a report,
TIKget must pay t-o the L^..uthority a penalty ef $100 for eaeh subsequent day until the report is
filed. Failure by the L'\uthority to clelh'er a timely warning notice '..vill not relieye Target's
obligation to pay a penalty within 30 days after r-eeeipt of a notice to pay. The maximwn
aggregate penalty payable ooder this Seetion is $l,OOO.Intentionallv omitted.
1.6 Release. The GityHRA hereby agrees that the Developer is released of all
liability under the Developer Business Subsidy Agreement to the extent of Target's obligations
-3-
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 but the Authority shall have no rights or remedies against Target,
except as set forth in this Agreement.
1.7 Counterparts. This AlZreement mav be executed in anv number of counteroarts.
each of which shall be deemed to be an orilZinal and tOlZether which shall constitute one and the
same Al!feement.
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f/I~
IN WITNESS WHEREOF, the HRA and DeyeloperTanzet 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
-5-
f.,l,
r~/~
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
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
-6-
TARGET CORPORA nON
By
Its
STATE OF MINNESOTA )
) SS.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _ day of
2006 by , the of Target Corporation, a
Minnesota corporation, on behalf of the corporation.
Notary Public
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