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09-18-00 agendaL CITY OF RICHFIELD, MINNESOTA • HOUSING AND REDEVELOPMENT AUTHORITY MONDAY, SEPTEMBER 18, 2000 RICHFIELD CITY HALL 6700 PORTLAND AVENUE COUNCIL CHAMBERS 7 P.M. AGENDA • Call to order Approval of minutes of Regular HRA Meeting of August 21, 2000 1. Opportunity for citizens to address the HRA on items not on the agenda Notes: 2. HRA approval of agenda 3. Consent Calendar contains several separate items which are acted upon by the HRA in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further HRA action is necessary. However, any HRA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for HRA discussion and action. All items listed on the Consent Calendar are recommended for approval A. Consideration of approval of additional funding for fiber optic lighting costs for 66th Street/I-35W bridge in amount of $9,842.57 S.R. No: 57 B. Consideration of approval of resolution consenting to assignment of limited revenue note and approving agreement for Gramercy Park Cooperative at Lake Shore Drive S.R. No. 58 Notes: RESOLUTION 4. Consideration of resolution authorizing eminent domain proceedings to acquire certain real properties located within Interchange West area Staff Report No. 59 Notes: ADMINISTRATIVE REPORTS AND OTHER BUSINESS 5. Update on City Bella and preconditions to development Staff Report No. 60 Notes: 6. Redevelopment Status Update Notes: 7. Executive Director report Notes: 8. Claims and payroll Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the Administrative Services Director at 612-861- 9702. • AGENDA SECTION: Admin. Reports AGENDA ITEM # S REPORT # 6 ~ ~' STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 18, 2000 • REPORT PREPARED BY: BRUCE NORDQUIST, HOUSING & REDEVELOPMENT MANAGER Na,~, TITLE REPORT PRESENTER: BRUCE NORDQUIST, HOUSING & REDEVELOPMENT MANAGER NAME; TITLE DEPARTMENT DIRECTOR REVIEW: ~ ~~ REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Update on City Bella and Preconditions to Development. I. RECOMMENDED ACTION: By Motion: Authorize a 60-day extension of preconditions as plans are further developed. III. BACKGROUND ~ The Housing and Redevelopment Authority (HRA) authorized a Contract for Private Development (Contract) with Gramercy Corporation on July 17, 2000. The proposed "City Bella" project comprehensively redevelops the remaining portions of the southwest quadrant of Lyndale Avenue and 66th Street. The Contract includes 15 preconditions to development. The September meeting provides a checkpoint on progress for the HRA. A brief update on the status of each precondition and a detailed project schedule are attached for the HRA to review and ask any questions they may have of the developer. • 0918CityBella III. BASIS OF RECOMMENDATION A. POLICY • The HRA, City Council, and Planning Commission will be considering the approvals of the project during October, November, and December. • The completion of preconditions are integral to providing sufficient .information that allows the policy boards to make informed decisions. B. CRITICAL ISSUES • The adjacent Lake. Shore Drive Condominium has a task force that is monitoring project development. A recent letter from the Association has identified two issues: 1) The use and ownership of vacated right-of-way within the development area and 2) the height of the proposed three story cooperative along Lake Shore Drive Boulevard. These items are being studied by the developer. • Site assembly continues to be worked on by the developer. Agreements exist for acquiring Lyndale Hardware and the Lynch residence on Lake Shore Drive Boulevard (Lot 16). • In August, the developer proposed a 21-story apartment tower at the corner of 66th Street and Lyndale Avenue. The developer has since returned to its original 18-story proposal after a careful study of parking capacity. Also, attached to this letter is an analysis of whether a tower type of building in this location is appropriate. The planning firm of Hoisington Koegler evaluated the building height in context with the Lakes at Lyndale Master Plan. They found it appropriate and consistent to have a well designed tower in this downtown location. C. FINANCIAL • As concept plans are being converted to development plans in October, Ehlers and Associates wilt be able to more closely evaluate the financial aspects. • Expenses by Ehlers and Associates are being covered by the developer. D. LEGAL • The Contract provides for an extension of time for the completion of preconditions.. The major building placement and traffic circulation changes that occurred in August necessitate the additional time before proceeding with the policy approvals. IV. ALTERNATIVE RECOMMENDATION~S~ • The HRA can choose to delay consideration or the extension in time However, there is not a basis for denying an extension. V. .ATTACHMENTS • Status of Preconditions (Attachment A) • Project Schedule (Attachment B) • Analysis of building height by Hoisington Koegler Planning firm (Attachment C) VI. PRINCIPAL PARTIES EXPECTED AT MEETING • The developer, Gramercy Corporation, Lou Stocco. • Attachment A Status of Preconditions September 18, 2000 a) The feasibility of a skyway crossing along Lyndale Avenue and/or a pedestrian bridge crossing along Lake Shore Drive together with agreement as to design, construction, timing and cost sharing of any such work. A discussion and design of these elements are being pursued by the Developer. Contact with Richfield State Agency about a connection with Woodlake Centre has been favorable. b) The location and nature of all public improvement to be constructed to serve and benefit the Development, together with the timing and responsibility for their construction and the phase out of existing public improvements. A plan for public improvements. is being developed simultaneously with the rest of the development plan. The primary public areas include the plaza, bridge, skyway, and parking ramp. c) The location, layout and design of any interior trafgc circulation systems and the timing for construction of the same. The plan revision in August improved internal traffic circulation. Traffic consultants are evaluating volume end circulation based on this revision. d) The landscape plan and the timing. for installation of the same. The developer has identified as the landscape architecture firm that will develop the landscape plan. e) Tree protection during construction (redeveloper to be responsible for the cost of a survey and protection plan). As part of the landscape plan, the addition and removal of trees will be determined. It has previously been determined that approximately 20 mature trees are in the building zone and would be removed to construct the three story cooperative housing on Lake Shore Drive Boulevard. f) A schedule for commencement and completion of construction of the Development, and all public improvements to serve the Development; A preliminary schedule is attached. The HRA is not being asked to approve this schedule yet. It is only being used to forecast the developer intentions. g) The condition of the Redevelopment Property with respect to environmental contaminations and pollution,; and the obligations and responsibilities of the parties with respect to remediation, if any. 0918CityBella Petroleum contaminated soils at the intersection- of 66th Street and Lyndale Avenue have been identified and a strategy for containment and/or removal is being evaluated. h The nature, location and cost of removal or relocation any utilities currently located on the Redevelopment Property which are required to be removed or relocated due to construction of the minimum improvements and the allocation and financing of the cost of such activities. A plan to vacate public right-of--way and utilities within the development and the upgrading of where the adjacent uses connect to the development is being evaluated. i) The nature and extent of the Development's contribution to the Affordable Housing goals of the HRA. The developer is evaluating affordability with a goal of 20 percent of the apartments being affordable (approximately 40 to 50 units). j) The content of the concept Plans. The concept plans based on the design revisions should be completed in early October. The architectural firm of Korsunsky, Drank, Erickson has been identified as the lead architect. k) The level of economic assistance to be provided by the Note, and which satisfies the "but-for" test. The level of assistance and need for assistance will be determined by November. I) The nature of a personal protection and safety plan for the Development. A personal protection and safety plan is being developed. m) The feasibility of locating and transit service facility on or adjacent to the Redevelopment Property, and the nature of each party's responsibility for any such facility. The developer is evaluating how to make transit connections that improve access to transit at 66th Street and Lyndale Avenue and compliment the development. n) The scope and nature of any environmental review required in connection with the development and the responsibility of each party in such review process. The voluntary Environmental Assessment Worksheet is underway. (The developer has agreed to the EAW although the size of the development does not require an EAW.) o) The source and nature of the local contribution. The local contribution will be determined at the same time that the economic assistance is determined. ATTACHMENT B Anticipated Schedule for City Bella Project • ITEM Development Agreement Performance (H12A) Planning and Zoning Process Developer submits application for rezoning and planned unit development (PUD) plan, final development plan (FDP), conditional use permit_(CUP) Administrative review of application ___ Developer.submits complete planning application _ Developer.hosts_public information meeting on project _ : _ Planning.Commission hearing .on_ PUD.rezoning, .FDP, CUP Council: first .reading of rezoning,: vacations ___ _ _ ___ _ Council second reading and public hearing on PUD rezoning P.UD_plan.,.vacations., FDP, CUP, .prelim.inary.and_final.plat Council comment on business subsidy agreement Rezoning and vacations effective Environmental Assessment Worksheet EAW preparation City (Council) authorizes distribution of EAW and submits EAW notice to EQB for publication EAW distributed to EQB. distribution list Notification of EAW availability published in EQB Monitor 30-day.public.com.ment_period on EAW ___ ____ City Council acts on EAW 30-d ay_.appeal.._period._.._..-......-...------..........______._._....-....._---__......-...u.`._____..__-..._~_._......_......_._... Notice of decision published in EQB Monitor DATE 9/18/00 12/18/00 ..................-1.2/29/00... 4/2/01 April, 2001 Spring, 2002 Spring, 2003 9/13/00 .._.,9/20/00.. 10/10/00 10/11 /00 10/2400 11 /13/00 12/11 /00 12/11 /00 ....1 /20/01 8/25/00-10/9/00 ~~10/9/00 09/12/00 Anticipated Schedule for City Bella Project L' • • Development Review/HRA Actions Staff prepares and submits clean-up grant 9/26/00-10/20/00 .. HRA preconditions report,..authorize cleanup.._g.rant_.._ ..................... ....................................._........._1.0/1.6/0..._.. Final pre-condition report and development review by the HRA, 11/20/00 Gramercy Plan Mod, and public hearing on business subsidy aareement 09/12/00 ATTACHMENT C Creative Solutions for Land Planning and Design • Hoisington Koegler Group Inc. ©© ©® 1 September 2000 Mr. Bruce Nordquist City of Richfield 6700 Portland Avenue Richfield, Minnesota 55423 RE: Review of City Bella Concept 66th Street and Lyndale Avenue Dear Bruce, As requested, we have summarized our insights about the proposed City Bella development for your records in this letter. Our comments are based on the review of the project on 17 August 2000. Our understanding of the project is as follows: ^ The proposed development will eliminate all existing development north of Grammercy and east of Lake Shore Drive condominiums ^ The previous development. proposal for this site (by the same developer) demonstrated an 18 story building; the current proposal shows three additional stories that accommodate co-op apartments that have been very successful at Grammercy ^ The proposed development includes a 21-story tower at the corner of 66th Street and Lyndale Avenue, with lower "wings" (approximately 5 stories) generally along 66th Street and Lyndale Avenue; a separate 6-story building is proposed south of the larger .building along Lyndale Avenue ^ Parking for the project is accommodated in an underground garage that basically extends across the entire site ^ The tower will be largely residential, with commercial uses at street level; the "wings" may include office and residential uses and a health club ^ The separated 6-story building will include retail and office uses Our review of the proposal will deal with three broad areas: ^ .Development context and conformance with Lakes at Lyndale Master Plan ^ Site and building design ^ Context within the City of Richfield ^ References and examples Development Context and Conformance with Lakes at Lyndale Master Plan The critical issue in terms of the city review of the concept proposed by the developer is the height of the building and a determination if it is out of context with other development in the area or in conformance with the master plan for Lakes at Lyndale. Nearby development in generally in the range of 12 stories west of Lyndale Avenue; the Richfield Bank Building on the east side of Lyndale Avenue is 6 stories. Woodlake Center (adjacent to the Richfield Bank Building and the Woodlake Clinic) is three stories. At 21 stories, the proposed development is considerably taller than any other buildings in the area. 123 North Third Street, Suite 100, Minneapolis, MN 55401-1659 Ph (612) 338-0800 Fx (612) 338-6838 Mr. Bruce Nordquist Review of City Bella Concept 1 September 2000 Page 2 The master plan suggests that taller buildings be located within the "core" of the master plan area (an area bounded by Lake Shore Drive on the west, 67`x' Street on the south, the railroad on the east and 65~' Street on the north). While taller buildings are suggested, the plan does not indicate how tall these buildings might be, and the guidelines do not specifically restrict a building of this size. The master plan indicates the K-Mart site will be redeveloped with office, housing and entertainment uses. It should be considered likely that any development on that site will be quite tall (for certain, it will be taller than most surrounding development). Having another tall building at the intersection of 66'i' Street and Lyndale Avenue will balance the height of the City Bella proposal. Site and Building design The proposed development seems appropriately sited, with buildings that address the public sidewalk and a significant open space element at the center of the block. The exact setback from the rights-of--way at 66~' Street and Lyndale Avenue could not be determined from the concept sketches. It would seem appropriate that setbacks similar to Woodlake Center be used (approximately 15 to 20 feet). A similar setback might be used at other developments in the area to maintain a more consistent pedestrian experience along 66~' Street and Lyndale Avenue. Wherever possible, the design of the site should invite people on the public sidewalks into the open spaces at the center of the site. Where this occurs following entry drives or parking areas, the experience should be separated to the greatest degree possible so that the focus remains on the site features and not on parking. The .ways in which the building "breaks down" is important. The lower scaled "wings" and the separated building form reasonable transitions to nearby development (especially relative to the Richfield Bank Building, which is 6 stories). The tower elements appeared to have a "base" of about 3 stories, which complements Woodlake Center. The tower element was set back from the base, but the amount of setback could not be determined from the drawings. Separation of the tower from the base is critical; further design should demonstrate how this relationship can be achieved so that the tower does not overwhelm the street. The design of the building seemed to show an articulation of the fapade with banding, balconies and other elements that wih help provide scale to the building. Real balconies should be encouraged (balconies that people will actually use). Context within the City of Richfield While this would be a tall building in any part of Richfield, or in any other suburban city for that matter, there is probably not a better location for it in Richfield than at this corner. The Lakes at Lyndale master plan suggests that this part of the city will ultimately become "downtown" (especially when the area that includes the Hub is considered). Tall buildings in a downtown might be expected; if the development were proposed in any of the other commercial redevelopment nodes in Richfield it would seem to be sorely out of place. Here, the addition of a tall building makes sense, and we believe it will fit more directly into the fabric of the city. Ultimately, the difference between a 21-story building and the previously proposed 18-story building is probably not significant. In terms of the area, the aesthetics of the intersection and the pedestrian Mr. Bruce Nordquist Review of City Bella Concept 1 September 2000 Page 3 experience advocated by the master plan may be more important considerations. A lower scale base- one that mimics the height of Woodlake Center - and a taller tower element can certainly be achieved without diminishing the pedestrian experience and without overwhelming the street. Further design explorations by the developer should be oriented to proving that the project satisfies those considerations. And as the city looks to the future, the ability to introduce large buildings at the K-Mart site and, if possible, to replace the parking lot at Champs with a building as well, will create an identifiable center for the community's "downtown." References and Examples There do not seem to be a lot of reference points for a project like this. Tall buildings in suburbs tend to be isolated or surro~,:nded ~y park3.zig lots. Laurel `tillage ~r Mirneapoiis m~gl.t be a`reasnnzble exa.~nple. There are two towers of approximately the same height as the City Bella proposal, and the design employs a 3 story base that forms a strong relationship with the street. The design of the buildings is quite different than that shown on the City Bella sketches, but it does use some of the basic architectural concepts (the notion of a base, a set back tower, and lower scaled "wings"). We have included a few photographs of Laurel Village as an attachment to this letter. Please call us if you have any questions. Sincerely, Hoisington Koegler Group Inc. ~~R'c~,ca~._ R. Mark Koegler Michael Schroeder C] • Laurel Village: three and four story base of residential and street level retail (with tower set back from street edge in the background) Laurel Village: three and four story base of residential residential and street level retail base (with tower set at street edge in the background) Laurel Village: residential tower set back Laurel Village: three and four story base at street level from street behind four story base of parking and street level retail Laurel Village: three and four story base Laurel Village: residential tower set back from of residential and street level retail street behind four story base of parking and street level retail Mr. Bruce Nordquist Review of City Bella Concept 1 September 2000 Page 4 AGENDA SECTION: Resolution AGENDA ITEM # 4 REPORT # S 9 ~- STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 18, 2000 • 70HN STARK, REPORT PREPARED BY: COMMUNITY DEVELOPMENT MANAGER NAA~', TITLE BRUCE PALMBORG, REPORT PRESENTER: COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of a resolution authorizing eminent domain proceedings to acquire certain real properties located within the Interchange West area. I. RECOMMENDED ACTION: By Motion: Adopt a resolution authorizing eminent domain proceedings to acquire certain real properties within the Interchange West area. II. BACKGROUND On March 20, 2000., the Richfield Housing and Redevelopment Authority (HRA) adopted, and entered into a Contract for Private Development (Contract) with Best Buy for the redevelopment of the Interchange West area. The Contract contemplates the private acquisition of properties by Best Buy wherever possible. Section 3.2 of the Contract, however, allows Best Buy to request that properties be acquired through condemnation. The Contract stipulates that this request can 0918BBuy come only after Best Buy has taken reasonable steps to acquire property for which the request is being made. On July 17, 2000 the HRA authorized condemnation of six properties located within the Interchange West area and granted a time extension for the developer's request of condemnation on any other properties in the area. Best Buy is stating in the attached correspondence that they have made diligent efforts to negotiate the purchase of the remaining parcels of land. Most of these negotiations have resulted in the execution of private purchase agreements between Best Buy and property owners, including agreements with all 68 homeowners and about half of the commercial property owners. Best Buy's attached correspondence also contains a request that the HRA acquire the remaining properties through condemnation. Best Buy reports that purchase offers have been made and that further efforts to reach a negotiated purchase agreement with the property owner(s) have been unsuccessful. Exhibit A of the attached resolution gives the address, parcel identification number and owner of each of these properties. The addresses of the properties are as follows: 7701 Morgan Avenue South 7713 Morgan Avenue South 7615 Logan Avenue South 7626-44 Knox Avenue South There are three remaining properties for which Best Buy does not yet have an executed purchase agreement, but for which they are not yet requesting condemnation actions by the HRA. Best Buy will continue to attempt negotiations for the purchase of these properties. In the event that such negotiations are unsuccessful, Best Buy may request their acquisition through condemnation at a later date. Mr. Tim Murnane of Opus will be available to report on property acquisition. III. BASIS OF RECOMMENDATION A. POLICY • The HRA entered into a Contract for Private Development with Best Buy Co., Inc. on March 20, 2000. • Section 3.2 of the Contract allows Best Buy to request that the HRA acquire those properties, for which Best Buy has been unable to reach a negotiated agreement, through eminent domain. • Under the Contract, Best Buy has until November 15, 2000 to request condemnation. • Best Buy has submitted a Request for Condemnation for certain properties. B. CRITICAL ISSUES • The timely acquisition of properties is critical to the schedule of this project. • The bylaws of the Masonic Lodge require the unanimous .consent of all members. There is no practical way to complete the process in a timely manner.. • The objective will be to continue negotiations on the four parcels should the HRA approve the request for eminent domain. C. FINANCIAL • In accordance with the Contract, Best Buy will be responsible for all the HRA costs associated with this eminent domain action. D. LEGAL • Legal counsel has reviewed the Request for Condemnation and has found that Best Buy has satisfied the requirements set forth in Section 3.2 of the Contract. IV. ALTERNATIVE RECOMMENDATION(S~ • Do not approve the resolution authorizing the use of eminent domain for the acquisition of the identified properties. To approve this at a later date may have an adverse impact on the overall schedule. V. ATTACI-IMENTS • Resolution authorizing eminent domain proceedings to acquire certain .real properties • Best Buy letter regarding request for condemnation VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Mr. Tim Murnane, Vice President of Real Estate Development for Opus Northwest • HRA legal counsel Corrine Thomson • RESOLUTION NO. RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA AUTHORIZING EMINENT DOMAIN PROCEEDINGS TO ACQUIRE CERTAIN REAL PROPERTIES WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "HRA") is a housing and .redevelopment authority duly constituted and organized under law, with all of the powers enumerated in Minnesota Statutes, Sections 469.001 to 469.047 (the "Act"); and WHEREAS, the HRA is authorized to develop and carry out redevelopment plans and redevelopment projects, as those terms are respectively defined in Minnesota Statutes, Section 469.002, subdivisions 16 and 14; and WHEREAS, the City of Richfield on June 14, 1993 adopted a redevelopment plan (the "Redevelopment Plan") for the Richfield Redevelopment Project Area (the "Project Area"), and on June 14; 1999 adopted a modification to the Redevelopment Plan and established the Interchange West and Lyndale Gateway Tax Increment Financing District (the "TIF District"). WHEREAS, the Plans, as modified, contemplate the acquisition of certain real properties (the "Properties") which are .located in the Project Area and which are more particularly described below in this resolution; and WHEREAS, the HRA has entered into a contract for private redevelopment (the "Contract") of land lying within the TIF District portion of the Project Area (including, but not limited to the Properties); and WHEREAS, the Developer under the Contract is not in default of any of its obligations thereunder, and the- HRA is satisfied that the Developer has endeavored reasonably, but without success, to negotiate the acquisition of the Properties; and WHEREAS, the Developer has informed the HRA of the status of such efforts and has established, to the satisfaction of the HRA, that there is no substantial likelihood that further negotiations would be productive; and WHEREAS, the Developer has requested that, in accordance with the terms of the contract, the HRA commence eminent domain proceedings, and that such proceedings be undertaken as soon as possible so as to assure that the Properties will be available for development when needed; and WHEREAS, the HRA is satisfied that the Developer has complied with the requirements of the Contract concerning such request; and WHEREAS, the HRA has retained qualified independent appraisers to estimate the market value of the Properties and immovable fixtures located on the Properties; and WHEREAS, the HRA wishes to ensure that the owners of the Properties are allowed a reasonable period of time to respond to said offer. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: 1. It is necessary to acquire the Properties as described below in this resolution in order for the HRA to carry out the purposes of the Plans, as modified, and the Act, to deal with properties that are structurally substandard and to eliminate and prevent the development or spread of conditions of blight found to exist by the City and the HRA. 2. Acquisition of the Properties by eminent domain, in the manner provided by Minnesota Statutes, Chapter 117, is deemed to be necessary and for a public purpose and is hereby authorized. 3. The HRA deems it necessary for the reasons set forth in the Plans, as modified, and in order to meet anticipated construction schedules, to proceed without undue delay to commence condemnation of the Properties. 4. The HRA's staff is authorized to review and approve the appraisal reports prepared by the independent appraisers and to make offers to the property owners based upon the appraised values of the property as approved by staff. The HRA's attorney and staff are authorized to commence and prosecute to completion eminent .domain proceedings to acquire fee simple absolute title to the Properties, provided that eminent domain proceedings shall not be commenced until at least 14 days- after the HRA's attorney or staff has mailed an offer to purchase the Properties to the fee owners of the Properties. The. HRA's attorney and staff are authorized to delay commencement of proceedings beyond said 14-day period if they deem it to be in the HRA's interests or in the interests of facilitating a negotiated settlement of the Properties between the property owners and the developer. 5. The Properties to be acquired are described on the attached Exhibit A. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 18th day of September, 2000. ATTEST: Thomas E. Harms, Chairperson Mike Sandahl, Secretary i -C September 13, 2000 Richfield Housing and Redevelopment Authority Attn: Samantha Orduno, Executive Director 6700 Portland Avenue South - Richfield, MN 55423 VIA MESSENGER Ph.: (612) 861-9705 RE: Contract for Private Development by and between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD AND. BEST BUY CO., INC., -Request for Condemnation Dear Samantha: • In accordance with Article III of the Contract for Private Development by and between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD AND BEST BUY CO., INC., Best Buy hereby requests condemnation of that portion of the Development Property attached to this letter as Exhibit A ("Condemnation Property"). Best Buy hereby submits the following as part of this request. 1. That Best Buy has .taken all reasonable steps to acquire the Condemnation Property, including making offers to the owners with purchase prices at or better than fair market value, including relocation expenses, based upon information furnished to us by qualified appraisers and a qualified relocation consultant. 2. That Best Buy has the financial ability to acquire the Development Property and construct the Development. A copy of Best Buy's most recent annual report and 10-K has been previously provided to the Authority. 3. That based on preliminary investigations Best Buy is not aware of any conditions that would prevent Best Buy from proceeding with the acquisition and development of the Development Property. 4. That attached to this letter as Exhibit B is a list of all residential properties within the Development Property. As indicated on the exhibit, Best Buy now has fully executed purchase agreements on all sixty-eight (68) residential properties. 5. That attached to this letter as Exhibit C is a list of all commercial properties within the Development Property showing the properties where purchase t:\shared\jim\richfield-corpcampus\richfield'l l .doc Corporate Headquarters: 7075 Flying Cloud Drive • Eden Prairie, MN 55344 • 612/947-2000 Mailing Address: P.O. Box 9312 • Minneapolis, MN 55440 • NYSE Symbol: BBY EXHIBIT A • C • Legal Descriptions of Properties to be Acquired Parcel 1: Tax record owner: Mary Lee Whiting Street address: 7713 Morgan Avenue South Tax parcel PID: 33-028-24-33-0077 Legal Description: The south 75 feet of the North 235 feet of Tract M, Registered Land Survey No. 800, Files of Registrar of Titles, County of Hennepin, as measured along the East and West line of said Tract M. Parcel 2: Tax record owner: Century Lodge No. 338 Street address: 7615 Logan Avenue South Tax parcel PID: PID 33-028-24-34-0005 Legal Description: Tract A, except the South 302 feet thereof, Registered Land Survey No. 618, Hennepin County, Minnesota AND The South 176 feet of the North 349 feet of the West 5 acres of the Southeast Quarter of the Southwest Quarter, Section 33, Township 28, Range 24, Hennepin County, Minnesota Parcel 3: Tax record owner: Leaseback Properties. Limited Partnership Street address: 7626-7644 Knox Avenue Tax parcel PID: PID 33-028-24-34-0009 Legal Description: The North 124 feet of the South 302 feet of Tract A, Registered Land Survey No. 618, County of Hennepin AND The South 178.00 feet of Tract A, Registered Land Survey No. 618, County of Hennepin Parcel 4: Tax record owner:. Leaseback Properties Limited Partnership Street address: 7701 Morgan Avenue Tax parcel PID: 33-028-24-33-0094 Legal Description: That part of the Southerly 52.70 feet of the Northerly 112.7 feet of Tract M, Registered Land Survey No. 800, as measured along the East and West lines of said Tract M, Files of the Registrar of Titles, County of Hennepin, lying West of the Easterly 20.00 feet thereof. 09186BUY Richfield Housing and Redevelopment Authority September 13, 2000 Page 2 of 2 agreements or options to purchase have been executed and the properties where no purchase agreements or options to purchase have been executed. Please note that in addition to the properties for which Best Buy is requesting condemnation herein, Best Buy still has not finalized purchase agreements for the three (3) apartment buildings. Although Best Buy has worked diligently to finalize agreements with the owners of the apartment buildings, Best Buy does not believe that it is in the best interest of either Best Buy or the Authority. to request condemnation of these. properties at this time. It is Best Buy's intention to continue its negotiations with the hope that a mutual agreement can be attained. However, Best Buy would like to reserve its right to request condemnation of the apartment properties in October in the event that continued negotiations prove unsuccessful. If there is any other information you need, please advise. Thank you. Sincerely, ~. ~~ J es E. Istas Associate General Counsel Ph.: 612/995-7082 w/ enc cc: George Lopuch (w/o enc.), Joe Joyce (w/o enc.), Pat Matre (w/o enc.), Della Kolpin (w/o enc.)_ Kennedy & Graven, Chartered (Via Messenger) 470 Pillsbury Center Minneapolis, MN 55402 Attention: John B. Dean Ph.: (612) 336-9207 Opus Northwest, LLC (Via Messenger) Opus Corporate Center 10350 Bren Road West Minnetonka, MN 55343 Attn: Timothy W. Murnane Ph: (952) 656-4568 Faegre & Benson (Via Messenger) 2200 Norwest Center 90 South 7"' Street Minneapolis, MN 55402 Attn: Mark Savin EXHIBIT A Property Owners and Legal Description of Condemnation Properties Property Owner: Richfield Lodge No. 334, Ancient Free and Accepted Masons, a Minnesota non-profit Corporation. Legal Description: The land referred to is situated in the State of l~innesata, County of ~anepi, and is described as falla~rs: Tract A, except the Sauth 302 feet thereof, Registered Land Survey Na. 6I &, Hennepin. County, I~Sinnesota. ANI~ The South 176 feet of the ~Iarth 349 feet of the west S acres of the Southeast Quarter of the Southwest Quarter, Section. 33, To~rnship 2~, Range 24, Hennepin Caunty, lVlinnesota. Property Owner: Mary Lee Whiting and spouse, if married Leal Description: The iand retc~rreci to i:~ sit~:~ated in the State of Minnesata, County of Hennepin, and. is described as follc>~~,°s: South. '1j f G~ t of the 3~Iorth 235 feet of Tract ~I, Registered Land carve}# a. QO, `files o~ Re~i 4trar of'l'itles, Caunty of l iennepn, as measured along tl~c Last any l ~T `::; ~ 1 i rye cif said Tract M. Property Owner• Leaseback Properties Limited Partnership Leal Description: The land referred. to is situated in the State of ivTinnesota, County of Hennepin, and is described as follows: The North 124.0 feet. of the South 3{?2.0~ feet of Tract A., Registered Land Survey No. 618, County of I-tennepin. A.nd The South l78>Q0 feet of Tract A, Registered Land Survey No. 618, County of Hennepin. • Property Owner• Leaseback Properties Limited Partnership Legal Description: The land referred to is sit~~<~ted in the State of Minnesota, County of Hennepin, anal is desc~bed as follows; `That part of the Southerly 52.70 feet of the Northerly 112.7 feet of Tract l~l, Registered sand Survey No, 800, as measured along the East and "West lines of said Tract M, Files of the Registrar of Titles, County of Hennepin., lying West of the Easterly 20.00 feet th~:reof: • EXHIBIT B SUMMARY ANALYSIS Residential Site Acquisitions -Best Buy Headquarters • • Map Reference Number roperty Owner Property Address treet Name Purchase Agreement Si ned 1 Church of St. Richard 7601 Penn Ave. South X 2 Church of St. Richard (Greg Esty) 760 Penn Ave. South X 3 Mohamad & Beebee Sharief 761 Penn Ave. South X 4 Gladys H. Jensen 7621 Penn Ave. South X 5 James Lang 762 Penn Ave. South X 6 Somboun & Vy Vorasane 763 Penn Ave. South X 7 Cynthia & Michael Triggs 763 Penn Ave. South X 8 Ronald & Hellen Matheson 764 Penn Ave. South X 9 Syewart & Alice Stotesbery 760 Oliver Ave. South X 10 John & Helen Cretzmeyer 760 Oliver Ave. South X 11 Christopher M. Hankins 761 Oliver Ave. South X 12 Ann Louise Strub Trustee (Joseph) 761 Oliver Ave. South X 13 Esther L. Link (Esther & Thomas Haley) 762 Oliver Ave. South X 14 Paul F. & Louise J. Ragatz 762 Oliver Ave. South X 15 Bankers Trust Co. of CA (Lucretia Smith & Thomas Brothen) 762 Oliver Ave. South X 16 Robert & Loraine Guthe 763 Oliver Ave. South X 17 Jason & Demina Popowski 763 Oliver Ave. South X 18 Vuthy & Ra Kour 764 Oliver Ave. South X 19 Rt Sedoff & M Sedoff 7601 Oliver Ave. South X 20 Barbara L. Gresbrink 760 Oliver Ave: South X 21 Guy & Julie Astell 761 Oliver Ave. South X 22 Elizabeth and Wendy Adams 7621 Oliver Ave. South X 23 James & Catherine Bergin 762 Oliver Ave. South X 24 Tracy and Kenneth Tracy 763 Oliver Ave. South X 25 Florence Laverne Smith 763 Oliver Ave. South X 26 William & Mary Topero 764 Oliver Ave. South X 27 Todd W. Anondson 7 Newton Ave. South X 28 Gisela & Leonard Hardie Jr. 760 Newton Ave. South X 29 Rueban & Carol Tulikangas 761 Newton Ave. South X 30 Levina J. Eischen 762 Newton Ave. South X 31 John & Lavone Tinker 762 Newton Ave. South X 32 L. Abrahamson (James Tripp & Margaret Knutson) 763 Newton Ave. South X 33 Joan M. Fuller 763 Newton Ave. South X 34 Lois A. Lovdal 7 Newton Ave. South X 35 John & Leone Grady 7601 Newton Ave. South X 36 TL & DL Nelson (Daretta Honer) 760 Newton Ave. South X 37 MJ Miller & PJ Miller (Mark Miller) 7611 Newton Ave. South X 38 Hans Van Schagen 761 Newton Ave. South X 39 Stan Thompson & Diana Thompson 762 Newlon Ave. South X 40 Charles Beaty 762 Newton Ave. South X 41 Gary & Patricia Hughes 763 Newton Ave. South X 42 Elmer R. Seaberg (Mary Seaberg) 7639 & 7641 Newton Ave. South X 43 Kenneth & Louise Neslund (Sheri Keep) 7643 & 7 Newton Ave. South X 44 Terry & Debbie Ahlstrom ~ 760 Morgan Ave. South X 45 Thomas & Lynn Penney 760 Morgan Ave. South X 46 Bruce & Diane Wetternach 761 Morgan Ave. South X 47 Thomas Mead & Donna Kupfer-Mead 762 Morgan Ave. South X 48 Mary Ellen Mathieu 762 Morgan Ave. South X 49 Roger & lone Rolstad 762 Morgan Ave. South X 50 Sandra Adelmann 763 Morgan Ave. South X 51 Margareta E Lagermeier 763 Morgan Ave. South X 52 Nirmalla & Doodnauth Dial 764 Morgan Ave. South X 53 David Bakke & Lydia Bakke 7601 Morgan Ave. South X 54 Chris & Chrrisse Borneman 760 Morgan Ave. South X 55 John McCune 761 Morgan Ave. South X 56 Maurice & Sandra Engen 7621 Morgan Ave. South X 57 Donna & Daniel Koch 762 Morgan Ave. South X 58 Helen Anderson 762 Morgan Ave. South X 59 Genet & Roman Abebe 763 Morgan Ave. South X 60 Frances & George Demont 7645 & 764 Morgan Ave. South X 61 Thomas K. Setre 191 76th Street West X 62 Paul D. Kachelmeier 7608 & 761 Logan Ave. South X 63 Wayne Peterson & Trent McKay 761 Logan Ave. South X 64 Delaine Curtis Rud 762 Logan Ave. South X 65 Jon & Mary Jo Straub 7626 & 7628 Logan Ave. South X 66 Martin Schroepfer 763 Logan Ave. Souih X 67 David Workman & Catherine Workman 7636 & 7638 Logan Ave. South X 68 Kevin L. Anderson Et al 764 Logan Ave. South X TOTALS: 08 • EXHIBIT C Summary Analysis Commercial Site Acquisitions -Best Buy Headquarters Property Owner (Use) Property Address Street Name Purchase Agreement Signed 7601 Company (Logan Manor Apartments) 7601 Logan Ave. South Century Lodge No 338 (Masonic Lodge) 7615 Logan Ave. South Pioneer Plastics 7629 Logan Ave. South x Ed Cirkl (ASAP Mailing Services) 7639 Logan Ave. South x Dall Foods Inc (Tom Thumb) 7600 Knox Ave. South x William Stiles (Nichol's Electric) 7608 Knox Ave. South x Leaseback Prop. Ltd. Partner 7626 Knox Ave. South The Diplomats 2101 77th Street West South Court LLC 2015 77th Street West Leaseback Prop. Ltd. Partner 7701 Morgan Ave. South Jon & Sandra Lonneman 7705 Morgan Ave. South pending Mary L. Whiting 7713 Morgan Ave. South Milton Westlund (Weston Associates) 7700 Logan Ave. South x Holmes Limited Partnership (Outdoors Again) 7701 Logan Ave. South x Wally McCarthy 1900 West 78th Street x Walser 2100 West 78th Street i oral: • STAFF REPORT Consent 3B 58 AGENDA SECTION: AGENDA ITEM # REPORT # HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 1S, 2000 BRUCE NORDQUIST, REPORT PREPARED BY: HOUSING & REDEVELOPMENT MANAGER. REPORT PRESENTER: BRUCE NORDQUIST, HOUSING & REDEVELOPMENT MANAGER NAME, TITLE DEPARTMENT DIRECTOR REVIEW: ~/i~~ _..^ REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Authorize a resolution consenting to assignment of a Limited Revenue Tax Increment Note for Gramercy Park Cooperative. I. RECOMMENDED ACTION: By Motion: Authorize the Chair and Executive Director to execute a resolution consenting to assignment of limited revenue note and approving agreement for Gramercy Park Cooperative at Lake Shore Drive. II. BACKGROUND The Housing and Redevelopment Authority (HRA) entered into a Contract for Private Redevelopment (Contract) with Gramercy Corporation in July 1998 for the Gramercy Park Cooperative. In December 1998, the HRA approved a Limited Revenue Tax Increment Note (Note) in the amount of $2,230,174 in support of the development. In September 2000, a Temporary Certificate of Occupancy has been issued by the Richfield Building Official and the project is nearing completion. Gramercy Corporation is moving forward to finalize 0918Gramercy permanent project financing which includes the assignment of the Limited Revenue Tax Increment Note. III. BASIS OF RECOMMENDATION A. POLICY • The Contract for Private Redevelopment between the HRA and Gramercy provides for the assignment of the Note. • The assignment coincides with the near completion of development in accordance with the Contract. • The assignment does not remove any responsibilities that Gramercy has for contract performance. B. CRITICAL ISSUES • Without the assignment, the Note cannot be cost effectively marketed by the developer as part of the post construction completion of permanent financing. C. FINANCIAL - • The assignment is consistent with recommendations made to the developer by Ehlers & Associates, the HRA's financial consultant. i D. LEGAL • The required documents and resolution have been prepared and reviewed by legal counsel. IV. ALTERNATIVE RECOMMENDATION(S~ • There is no basis for -not acting favorably on the Developer's request for assignment of the Note. V. ATTACHMENTS • Resolution • Assignment of Note agreement, September 18, 2000 • Limited Revenue Tax Increment Note, December 21, 1998 VI. PRINCIPAL PARTIES EXPECTED AT MEETING • The developer, Gramercy Corporation, Lou Stocco HRA RESOLUTION NO. RESOLUTION CONSENTING TO ASSIGNMENT OF LIMITED REVENUE NOTE AND APPROVING AGREEMENT WHEREAS, The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "HRA"), and Gramercy Park Cooperative at Lake Shore Drive ("Gramercy") did on or about July 20, 1998 enter into an agreement entitled Contract for Private Development (the "Contract") calling for the redevelopment of certain land within the City of Richfield; and WHEREAS, pursuant to the Contract the HRA did execute and deliver to Gramercy its Limited Revenue Tax Increment Note dated December 21, 1998 in the principal amount of $2,230,174 (the "Note"); and WHEREAS, the Gramercy has asked the HRA to consent to assignment of the Note; and WHEREAS, the HRA has fully reviewed the matter and received the recommendation of staff, and is willing to grant such consent subject to the provisions of an agreement between the parties that is attached hereto as Exhibit A (the "Agreement"). NOW THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: 1. The Agreement is hereby approved and the Executive Director and the Chair are hereby authorized to execute and deliver the same and to take all actions necessary to carry out is terms. 2. As a precondition to such execution and delivery, Gramercy shall reimburse the -HRA for the legal fees incurred in the review of this request and the preparation of. this resolution and the Agreement Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 18th day of September 2000. Thomas E. Harms, Chair ATTEST: Mike Sandahl, Secretary • CONSENT TO ASSIGNMENT OF NOTE AND RELEASE AND INDEMNITY Exhibit A "The Agreement" THIS AGREEMENT, made and entered into as of the day of ~ , 2000, by and between, GRAMERCY PARK COOPERATIVE AT LAKE SHORE DRIVE, a Minnesota cooperative corporation (the "Assignor"), and THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a Minnesota public body corporate and politic (the "HRA"). WITNESSETH: • • WHEREAS, The HRA and Assignor did on or about July 20, 1998 enter into an agreement entitled Contract for Private Development (the "Contract") calling for the redevelopment of certain lands within the City of Richfield; and WHEREAS, pursuant to the Contract the HRA did execute and deliver to the Assignor its Limited Revenue Tax Increment Note dated December 21, 1998 in the principal amount of $2,230,174. a copy of which is attached as Exhibit A (the "Note"); and WHEREAS, the Assignor has asked the HRA to consent to the assignment of the Note; and WHEREAS, the HRA is willing to grant such consent subject to the provisions hereinafter contained. NOW THEREFORE, in consideration of the mutual promises hereinafter contained, the parties hereto do stipulate and agree as follows: 1. Consent. The HRA hereby consents to the assignment of the Note by the Assignor to an assignee ("Assignee") to be designated by the Assignor in writing to the HRA. 2. Release and Indemnity. The Assignor hereby acknowledges that upon such designation, the HRA will make future payments under the Note to the Assignee, and hereby releases the HRA, its officers agents and employees from any claim or cause of action based on making of such payments to the Assignee. The Assignor will also, as a condition to such assignment, obtain the written agreement of the Assignee accepting the provisions of this Agreement and agreeing to indemnify and save harmless the HRA, its officers agents and employees from any claim or cause of action by the Assignor based on the HRA's payment to the Assignee of amounts due under the Note. 3. No Rights Expanded. The Assignor agrees that the assignment does not confer on the Assignee any rights with respect to the Note that were not available to Assignor at the time of assignment. 4. Continuing Obligation. Assignor acknowledges- that the Assignment does not relieve it of any obligations that it may still have under the Contract. IN TESTIMONY WHEREOF, the parties have set their hands to this Agreement as of the day and year first above written. GRAMERCY PARK COOPERATIVE AT LAKE SHORE DRIVE, a Minnesota Cooperative Corporation By: Its: THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By: Its: STATE OF MINNESOTA ss.. COUNTY OF The foregoing instrument was acknowledged before me this day of 2000 by the of GRAMERCY PARK COOPERATIVE AT LAKE SHORE DRIVE, a cooperative corporation under the laws of Minnesota, by and on behalf of said corporation. Notary Public STATE OF MINNESOTA ss.. COUNTY OF The foregoing instrument was acknowledged before me this day of 2000, by the of THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, a Minnesota • public body corporate and politic on behalf of the Authority. Notary Public • • EXHIBIT A ':'THE NOTE" • FIRST AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT THIS AMENDMENT, made and entered into as of the a~/~day of ~~~f~it., 19 ~ ~ by and between GRAMERCY PARK COOPERATIVE AT LAKE SHORE DRIVE, a Minnesota Cooperative Corporation ("Redeveloper") and THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, a Minnesota public body corporate and politic ("HRA"). WITNESSETH: WHEREAS, the HRA and Redeveloper did on July 20, 1998 execute and deliver that certain document entitled Contract for Private Redevelopment ("Contract"); and WHEREAS, restrictions subsequently placed upon the scale of the development by third parties have necessitated that the Contract be amended as set forth below; and WHEREAS, the HRA has reviewed the proposed amendments, has received the reports and recommendations of its staff and consultants, and .has concluded that the proposed amendments are necessary and appropriate and in furtherance of the proposed redevelopment. • NOW THEREFORE, based :upon: the mutual covenants and undertakings of the parties, the Contract is hereby amended by amending: Exhibit. A. thereof to read as follows: $2,230,174 UNITED STATES OF AMERICA STATE OF MINNESOTA COUNTY OF HENNEPIN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD LIMITED REVENUE TAX INCREMENT NOTE The Housing and Redevelopment Authority in and for the City of Richfield (the "Authority"), hereby acknowledges itself to be indebted and, for value received, promises to pay to the order of Gramercy Pazk Cooperative at Lake Shore Drive (the " _ caner"), to the extent and in the manner hereinafter provided, the original principal amount of this Note, being $2,230,174 (the "Principal Amount"), together with interest thereon accrued from the date of this Note, at the rate of interest of 7.5% per annum (the "Stated Rate"), in the amount and on the dates (the "Scheduled Payment Dates") set forth on the Payment Schedule attached as Schedule A hereto and in the amounts stated thereon (the "Scheduled-Payments"). Unpaid interest accruing from the date of this Note, shall be added to principal on asemi-annual basis on each August 1 and February 1 beginning with February 1, 1999 until February 1, 2001. An a ments on this Note shall be a lied first to accrued interest and then to the Principal Y P Y PP Amount in respect of which such payment is made. ]BD-!54841 1 RC 125-170 i Each payment on this Note is payable in any coin or currency of the United States of America which on the date of such payment is legal tender for public and private debts and shall be made by check or draft made payable to the Owner and mailed to the Owner at it postal address within the United States which shall be designated from time to time by the Owner. The Note is a special and limited obligation and not a general obligation of the Authority, which has been issued by the Authority to aid in financing a "project," as defined in Minnesota Statutes, § 469.174, of the Authority within and for the benefit of the Interchange Tax Increment Financing District ("District"). THE NOTE IS NOT A DEBT OF THE AUTHORITY, THE CITY OF RICHFIELD, OR THE STATE OF MINNESOTA (THE "STATE"), AND NEITHER THE AUTHORITY, THE CITY OF RICHFIELD, THE STATE NOR ANY POLITICAL SUBDIVISION THEREOF SHALL BE LIABLE ON THE NOTE, NOR SHALL THE NOTE BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER THAN AVAILABLE TAX INCREMENT, AS DEFINED BELOW. The Scheduled. Payment of this Note due on any Scheduled Payment Date is payable solely from and only to the extent. that the Authority shall have received as of such Scheduled Payment Date "Available Tax Increment." For the purpose of this Note, "Available Tax Increment" means: Seventy-five Percent (75%) of the tax increment received from the real .estate described in Schedule B the "Redevelopment Property" for years. beginning with .1998 and ending in 2026, after first • deducting therefrom i) any amount needed o make a previously due but unpaid Scheduled Payment to Owner; and ii) any 'amount required o make a payment due but not otherwise paid to the Authority under the Development Contract. For purposes of this Note, a "Payment Date" shall mean each of the Scheduled Payment Dates set forth on Schedule A attached hereto. To the extent that on any Payment Date the Authority is unable to make a full Scheduled Payment due to insufficient Available Tax Increment (which insufficiency is not due to a failure, of the Owner to pay full real estate taxes payable on the Redevelopment Property), such deficiency shall be deferred and paid along with future Scheduled Payments but only to the extent of Available Tax Increment. This Note shall terminate upon the earlier of i) the date when the Redeveloper has been fully reimbursed according to the terms hereof; or ii) February 1, 2026. This Note shall also terminate and the Authority's obligation to make any payments under this Note shall be dischazged and the Authority shall have no obligation and incur no liat~=lity to make any payments hereunder immediately upon the occurrence of an Event of Default under the Contract for Private Development, dated July 20, 1998, (the "Development Contract") between the Authority and the Owner, subject to the notice and cure provisions of Section 9.2 thereof.. This Note shall not be payable from or constitute a chazge upon any funds of the Authority or the City of Richfield and the Authority shall not be subject to any liability hereon or be deemed to have obligated itself to pay hereon from any funds except the Available Tax Increments, and then only to-the extent and in the manner herein specified. JBD-154841 2 RC 125-170 The Owner shall never have or be deemed to have the right to compel any exercise of any taxing power of the Authority or the City of Richfield or of any other public body, and neither the Authority or the City of Richfield nor any director, commissioner, council member, board member, officer, employee or agent of the Authority or the City of Richfield, nor any person executing or registering this Note shall be liable personally hereon by reason. of the issuance or registration hereof or otherwise. This Note shall not be transferable or assignable, in whole or in part, by the Owner without the prior written consent of the Authority; provided that the Owner may pledge the payments hereunder to a lender or assign the payments hereunder to a subsequent purchaser of the Development, but only with prior written notice thereof to the Authority. The Owner may also, without prior notice to or conseirt of the Authority transfer or assign the Note or the right to receive payments under the Note to a wholly-owned subsidiary of the Owner. This Note may be prepaid in full at any time at the option of the Authority; and may also be prepaid at the request of the Owner, but in either instance only if the Authority first determines that sufficient tax increment is or will be generated to permit such prepayment, and the parties agree upon the actual prepayment amount.. This Note is issued pursuant proper action of the Authority by Resolution and the Owner is entitled to the benefits thereof, which.Resolution is incorporated herein by reference. • IT IS HEREBY CERTIFIED AND RECITED that an acts, conditions, and things required Y by the Constitution. and laws of the State of. Minnesota to be done, to have happened, and to be performed precedent. to and. in the .issuance of this Note have been done, have happened, and have been performed in regular and due foram, .time, and manner as required by law; and that this Note, together with all other indebtedness of the. Authority or the City of Richfield outstanding on the date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of the Authority or the City of Richfield to exceed any constitutional or statutory limitation thereon. IN WITNESS WHEREOF, the Board of Commissioners of the Authority has caused this Note to be executed. by the manual signatures of the Chairperson and the Executive Director of the Authority and has caused this Note to be dated , 199 Chairperson • Executive Director JBD-154841, 3 RC125-170 r: • SCHEDULE A SCHEDULED PAYMENT DATES SCHEDULED PAYMENTS SCHEDULED PAYMENT DATES SCHEDULED PAYMENTS 8/1/01 105,864 2/1/14 125,754 2/1/02 105,864 8/1/14 127,560 8/1/02 107,402 2/1/15 127,560 2/1/03 107,402 8/1/15 129,391 8/1/03 108,961 2/1/16 129,391 2/1/04 108,961 8/1/16 131,247 8/1/04 110,540 2/1/17 13.1,247. 2/1/05 110,540 8/1/17 133,128 8/1/05 112,141 2/1/18 133,128 2/1/06 112,141 8/1/18 135,034 8/1/06 113,764 2/1/19 135,034 2/1/07 113,764. 8/1/19 136,965 8/1/07 115,409 2/1/20 136,965 2/1/08 115,409 8/1/20 138,923 8/1/08. 117,076 2!1/21 138,923 2/!/09 117,076 - 8/1/21_ 140,908 8/1 /09 118,765 2/1/22 140,908 2/1 / 10 118,765 8/1/22 142,919 8/1 / 10 120,477 2/1/23 142,919 2/1/11 120,477 8/1/23 144,957 8/1 / 1 " 122,213 2/1/24 144,957 2/ 1 / 12 122,213 8/1 /24 147,023 8/ 1 / 12 123,971 2/1/25 147,023 2/1 / 13 123,971 8/1/25 149,116 8/1 / 13 125,754 2/1/26 90,081 /60.154841 RC 125-170 In all other respects the Contract remains in full force and effect according to its terms IN WITNESS WHEREOF, the parties hereto have .set their hands and seals as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF RICHFIEL , IVRNNESOTA By: I :Chairperson By: i ~ . , ~l~1..rf/ ~~ Its: ,Exec ive Director ~.~ GRAMERCY PARK COOP TIVE AT LAKE SHO B •~ y' Its: (~ STATE OF 1vIINNESOTA ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this o~b~`' day of 9 ,995; by Thomas E. Harms and James D. Prosser, the Chairperson and Executive Director, of The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. }^'°'"`~~:= KATIA MEDVETSKI '~~ NOTARY PUBLIC -MINNESOTA ~' My Commission Expires Jan. 31, 2000 ~u~~~~~ otary Public ]BD-(5484( RC 125-170 • STATE OF MINNESOTA ) ss. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this 10th day of February 1999 by Michael W. Conlan, the Vice President of Gramercy Park Cooperative at Lake Shore Drive, a cooperative corporation under the laws of the State of.~sota, by and on be of said corporation. otary ..r. ~~~~.~~ ... ~v~~n~~ ~ ' - ` .2!'; ':;^1'ARYPl1SUC:•N61iVhcSv^7,- > ~ENf~EPL~+ ^CalJt~tl`~ ' ~. ;;, s;;y~,;Afi.m.,issroe+cxatros.ia.~...;i._2Gi~i)~ ht W Whltl.,'M1-.~.;~h!a+v. n.~.,~.., i< , i~.:..c~vv~rV*n...-,: i~ C7 • C ~~ STAFF REPORT Consent 3A 57 AGENDA SECTION: AGENDA ITEM # REPORT # HOUSING AND REDEVELOPMENT AUTHORITY MEETING SEPTEMBER 18, 2000 C7 REPORT PREPARED BY: REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: JOHN. STARK, COMMUNITY DEVELOPMENT MANAGER NAME, TITLE BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR ITEM FOR HRA CONSIDERATION: Consideration of additional funding of $9,842.57 for fiber optic lighting costs for the 66th Street/I-35W Bridge. L RECOMMENDED ACTION: By Motion: Approve additional funding in the amount of $9,842.57. for fiber optic lighting costs for the 66th Street/I-35W Bridge. II. BACKGROUND In accordance with approvals of the Richfield City Council and Richfield Housing and Redevelopment Authority (HRA), the HRA contributed $260,000 from the "Bonds of 1988" fund toward the construction of the 66th Street/I-35W Bridge on June 11, 1999. These funds were used to pay for aesthetic improvements which exceeded the estimated $1.6 million that the Minnesota Department of Transportation (MnDOT) was able to pay for the basic construction of the bridge. Among the aesthetic improvements planned is a fiber optic lighting system that will illuminate the bridge. It has been determined that additional fiber optic lighting components will be required to evenly illuminate the entire span of the fiber optic cables. The need for these additional components was not determined earlier 0918brdg Nance; TITLE because the estimate for the costs of aesthetic improvements was made during the .design phase of the bridge, but before a final design was complete. The cost of the additional illumination components, including labor, is $8,974.76 plus an additional 10 percent for the contractor's fee. If approved, this additional funding would come from the "Bonds of 1988" fund which was the source of the initial funding. III. BASIS OF RECOMMENDATION A. POLICY • The City/HRA desire the construction of a bridge that exceeds the aesthetic design standards of "basic construction" as defined by MnDOT. • A component of the aesthetic design improvements is illumination of the bridge through a fiber optic lighting system.. • The need for additional components in order to evenly illuminate the system have been identified. B. CRITICAL ISSUES • The bridge has been constructed to accommodate the fiber optic lighting system. C. FINANCIAL • The additional costs. would be funded through the "Bonds of 1988" fund. It has been determined that there are sufficient funds in this account and that the costs are eligible uses of that funding source. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S~ • Identify an alternative source of funding for the additional costs. V. ATTACHMENTS • A cost estimate from Egan-McKay Electrical Contractors, Inc. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A r E an-Mc~a Elec~ical Can~actor . ~. Buildulv:r_t~~~red a _ vii:^,r:'; ,. August 23, 2000 MJP 17340 Shafer Contracting Co., lnc. 30405 Regal Avenue P.O. Box 128 Shafer, Mn. 55074 Attn: George Mattson Re: SP2783-2681tem #395 Electric Light System Dear George: ~~~ ~ /uJ y~ i r~2E . Cfor~ ~/~w•~•~/cc~ ~~~~ ~~o~ o nC~C~~~ds~,~ n ~------,' ~' ~'~ ii j1 1/ 4 AUG 2 4 20u0 ~ ~ , : ~ ;, ; '~:~`~ ~ J~ On July 16, 2000, it was brought to the attention of EGAN-McKAY ELECTRICAL "~~ CONTRACTORS, 1NC., that the specialty fiber optic lighting assembly for the bridge over 66~' street has an effective distance of 100' or less. The scaled distance ftom illuminator to illuminator is 120' to 130' thus leaving a center portion darker then the ends. The manufacturer recommends installing four (4) additional illuminators, two (2) on each end. of the bridge. This would provide the desired light uniformity. This work however, requires additional conduit, wire, control cables along with four (4) more illuminators. ~~ The added cost for this work breaks out as follows: Labor 64 hours @$52.84...... _ _ Materials(includes 3,400 illuminators ~ ~ ~ ~ ~ ~ ~ ~ ~ $3'382'76 _ ..:......................... $4, 866.00 Equipment-Bucket truck 40 hours @$1.5.00 .......................$600.00 Van 20 hours @$5.00 ........................ $500.00 TOTAL $8,947.76 ~s~~ r .... ...::r•• ... ...... . .. .