07-20-98 agenda• CITY OF RICHFIELD
MONDAY, JULY 20, 1998
HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL
COUNCIL CHAMBERS
7 P.M.
AGENDA
APPROVAL OF MINUTES OF (1) SPECIAL JOINT HRA/CITY COUNCIL/PLANNING
COMMISSION/COMMUNITY SERVICES COMMISSION MEETING OF JUNE 15, 1998
AND (2) REGULAR HRA MEETING OF JUNE 15, 1998
1. OPPORTUNITY FOR CITIZENS TO ADDRESS THE HRA ON ITEMS NOT ON
THE AGENDA
2. CONSIDERATION OF AUTHORIZATION TO REMOVE EMERSON AVENUE
64TH TO 66TH STREETS FROM RICHFIELD LAKE AREA MASTER PLANNING
PROCESS
• HRA LETTER NO. 42
3. CONSIDERATION OF RESOLUTION APPROVING CONTRACT FOR PRIVATE
DEVELOPMENT BETWEEN HRA AND GRAMERCY PARK COOPERATIVE AT
LAKE SHORE DRIVE; GRAMERCY TIF DISTRICT
HRA LETTER NO. 43
4. CONSIDERATION OF RESOLUTION AUTHORIZING CONDEMNATION AND
QUICK TAKE FOR SIX, REAL PROPERTY INTERESTS; GRAMERCY PARK
COOPERATIVE AT LAKE SHORE DRIVE
HRA LETTER NO. 44
5. CONSIDERATION OF STIPULATION OF SETTLEMENT FOR 6724 LYNDALE
AVENUE; GRAMERCY PARK COOPERATIVE AT LAKE SHORE DRIVE
HRA LETTER NO. 45
6. CONSIDERATION OF SELECTION OF DEVELOPER AND AUTHORIZATION
TO NEGOTIATE AGREEMENTS FOR 6901 PENN AVENUE DEVELOPMENT
SITE
HRA LETTER NO. 46
7. CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF
CERTIFICATE OF COMPLETION FOR MERIDIAN CROSSINGS, PHASE I
HRA LETTER NO. 47
8. CONSIDERATION OF ACKNOWLEDGMENT AND CONSENT TO TRANSFER
PROPERTY FROM MERIDIAN PROPERTIES REAL ESTATE DEVELOPMENT
L.L.C., D/B/A TOLD DEVELOPMENT COMPANY TO THE STATE TEACHERS
RETIREMENT SYSTEM OF OHIO, MERIDIAN CROSSINGS OFFICE
REDEVELOPMENT PROJECT, PHASE I
HRA LETTER NO. 48
9. CONTINUATION OF PUBLIC HEARING AND CONSIDERATION OF
RESOLUTION AUTHORIZING ACQUISITION AND DISPOSITION OF
RESIDUAL PARCEL AT 76TH STREET AND PENN AVENUE
HRA LETTER NO. 49
10. CONSIDERATION OF RESOLUTION AUTHORIZING EXECUTION OF
CONTRACT WITH HENNEPIN TECHNICAL COLLEGE TO INITIATE 1998-99
• NEW HOME PROJECT AT 6241-14TH AVENUE
HRA LETTER NO. 50
11. CONSIDERATION OF RESOLUTION AUTHORIZING PURCHASE OF 6820
RUSSELL AVENUE UNDER RICHFIELD REDISCOVERED PROGRAM
HRA LETTER NO. 51
12. CONSIDERATION OF RESOLUTION AFFIRMING MUNICIPAL TORT LIABILITY
LIMITS ESTABLISHED BY MINNESOTA STATUTES 466.04
HRA LETTER NO. 52
13. EXECUTIVE DIRECTOR REPORT
14. 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 861-9702.
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 52
Agenda July 20, 1998
• Issue Statement:
Resolution affirming municipal tort liability limits established by Minnesota Statutes
466.04.
Background:
The State Statute that governs tort liability limits for municipalities was recently
amended. One major change contained in that amendment was to raise the monetary
limits of exposure for any municipality involved in a liability claim against it. The
previous limits of $200,000 for a single claimant and $600,000 for any single
occurrence, were raised to $300,000 per single claimant and $750,000 per occurrence.
With the previous limits, the League of Minnesota Cities Insurance Trust through which
the HRA purchases insurance, automatically waived an HRA single claimant liability
limit in providing the insurance. Thus, any single claimant could recover up to $600,000
against the HRA for a liability claim. With the change of liability limits, this option is no
longer automatically invoked by the League of Minnesota Cities Insurance Trust.
Instead, the waiver of liability limits must be acted upon by each individual city and/or
HRA by HRA action.
The question for the Richfield HRA is whether the HRA would voluntarily waive the
statutory limits for both the single claimant and each occurrence. If the single limit was
waived it would allow an individual claimant to recover up to the $750,000 single
occurrence limit. If the HRA waived its per occurrence liability limits and purchased
excess liability insurance, a single claimant could potentially recover up to the amount
of the limit of the additional coverage purchased. The total which all claimants would
be able to recover for a single occurrence to which the statutory limits apply would also
be limited to the amount of coverage purchased regardless of the number of claimants.
Since the new law was implemented, the majority of cities in Minnesota, including
Richfield, have elected not to waive the monetary limits on municipal tort liability that
was established by Minnesota Statutes 466.04. In other words, most cities are
standing by the statute which would allow an individual claimant to recover no more
than $300,000 on any individual claim and that all claimants recover no more than
$750,000 per single occurrence.
The election to waive limits of liability is an action that may be reviewed by the HRA on
an annual basis. City staff, in examining the actions of other municipal entities across
the state and its own risk management practices, is recommending that the HRA not
waive the monetary limits on municipal tort liability.
Recommended Motion:
Adopt a resolution authorizing the HRA not to waive the monetary limits on municipal
i tort liability established by Minnesota Statutes 466.04.
Basis of Recommendation:
1. The new limits have been increased to provide greater coverage for claimants
against municipal entities. The increase taking effect in 1998 is the first step in a
series of increases that will eventually bring the limits up to $1,000,000 per
occurrence in the next few years.
2. The HRA does not purchase excess liability coverage because of the cost of such
coverage.
3. The majority of municipalities in Minnesota are not waiving the monetary limits on
municipality tort liability as was established by statutes 466.04.
4. The tort liability limits established by Minnesota Statutes have protected cities
historically and no court has awarded an amount to a claimant in excess of the
statutory limits for municipalities in Minnesota.
5. There is a slight premium savings for entities that affirm the monetary limits on tort
municipal liability in their package coverage with League of Minnesota Cities
Insurance Trust. The savings for the HRA would be approximately $615 for the first
year.
6. The HRA could waive its statutory limits in future years if the HRA should decide to
do so.
• Alternative Recommendation:
1. If the HRA believes that any single claimant should receive more than the $300,000
limit, the HRA could elect to waive the monetary limits on tort liabilities established
by Minnesota Statutes.
If the HRA believes that the $750,000 limit is not adequate, the HRA could
purchase excess liability coverage in the amount of $1,000,000 in excess of the
limit at a cost of approximately $2,200 and subsequently waive the limits of liability
so individuals suing the HRA could collect up to the amount of coverage purchased
by the HRA.
Discussion/Decision Mode:
The HRA's insurance policy with the League of Minnesota Cities Insurance Trust
renewed on July 1, 1998. Thus, it is important that the HRA take action as soon as
possible after the first of July to either affirm or waive the monetary limits on tort
liabilities established by Minnesota Statutes 466.04.
submitted,
ResJDProsser
JamExeirector
JDP:cak
RESOLUTION NO.
RESOLUTION AFFIRMING MUNICIPAL TORT LIABILITY LIMITS ESTABLISHED BY
MINNESOTA STATUTES 466.04
WHEREAS, Minnesota Statute 466.04 provides for municipal tort liability limits
for Minnesota cities, and
WHEREAS, the League of Minnesota Cities Insurance Trust has asked that
each city review the tort liability limits and determine if the respective city would choose
to waive its limits, and
WHEREAS, such decision to affirm or waive the tort liability limits must be filed
with the League of Minnesota Cities Insurance Trust at the insurance renewal date.
NOW, THEREFORE, BE IT RESOLVED that the Executive Director is directed
to report to the League of Minnesota Cities Insurance Trust that the Richfield HRA does
not waive the monetary limits on the municipal tort liability established by Minnesota
statutes 466.04.
Adopted by the HRA of the City of Richfield, Minnesota this 20th day of July,
•
1998.
Martin J. Kirsch, Mayor
ATTEST:
Michael Sandahl, Secretary
0
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 51
Agenda July 20, 1998
Issue Statement:
Adoption of a resolution authorizing the purchase of 6820 Russell Avenue under the
Richfield Rediscovered Program.
Background:
The property at 6820 Russell Avenue is a rambler set back to the rear of the lot, with no
garage. The roof requires replacement and has caused leaking in the house. In
addition to cosmetic updating, most of the systems, such as electrical and the water
heater, need repair or replacement. Several interior doors are missing. The house is
on a desirable lot, and was appraised by BCL Appraisals Inc. at $60,000.
Recommended Motion:
Adopt the resolution authorizing:
1. The purchase of the property at 6820 Russell Avenue for $60,000.
2. The HRA Chairperson and Executive Director to execute a purchase agreement and
other documents to effectuate the purchase.
• Basis of Recommendation:
1. The property meets program requirements for acquisition.
Funding for Richfield Rediscovered acquisition is available.
3. The owner has voluntarily expressed interest in selling the property to the HRA.
4. The purchase has been negotiated based on an independent appraisal report.
Alternative Recommendation:
Do not authorize acquisition.
Discussion/Decision Mode:
The purchase agreement is ready to be prepared in final form.
submitted,
Execu'liv6 Director
JDP:cak
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY
LOCATED AT 6820 RUSSELL AVENUE
FOR THE RICHFIELD REDISCOVERED PROGRAM
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (HRA) desires to develop certain real property pursuant to and in furtherance of the
Richfield Rediscovered Redevelopment Project ("Project") heretofore adopted by the City of
Richfield (City) and the HRA, said real property being described as:
Lot 6 and the South 1/2 of Lot 5, Block 3 Tingdale Bros.' Lincoln Hills Third Addition;
and
WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to acquire
real property within its area of operations; and
WHEREAS, the property meets all program requirements for acquisition; and
WHEREAS, the HRA has negotiated a purchase price based on an independent
appraisal; and
WHEREAS, funds have been provided by the HRA and are available for acquisition.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority
in and for the City of Richfield:
1. A purchase price for 6820 Russell Avenue is approved at $60,000.
2. The Chairperson and Executive Director are authorized to execute a Purchase Agreement
or other documents to allow purchase for the amounts set forth in this resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 20th day of July, 1998.
Thomas E. Harms, Chair
•
ATTEST:
Michael Sandahl, Secretary
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 50
Agenda July 20, 1998
Issue Statement:
Authorization to execute a contract with Hennepin Technical College (HTC) to initiate a
1998-99 New Home Project at 6241-14th Avenue.
Background:
The HRA has purchased the property at 6241-14th Avenue from HUD. The structure
on the property was substandard in size and function and was severely neglected.
Demolition will begin shortly.
HTC has requested that the HRA participate in a new construction project for the 1998-
99 school year. Performance standards established in 1995 between the two
organizations ensure that the home will be framed, roofed and sided by the end of fall
quarter, December 1998. Interior wall framing, general carpentry, electrical, plumbing
and heating will be completed during the winter quarter ending March 1999. Concrete
steps and walk, exterior brick facing, landscaping and interior finishes will be completed
by June 1999. The home will then be marketed and sold next summer. The project at
6241-14th Avenue, to be stick-built on site, is the only HTC project commitment for the
1998-99 school year. The college had considered increasing its class capacity and
production, but it will not be during this school year. Subcontractors to HTC provide the
electrical, plumbing, heating and painting portions of the project.
Staff, in cooperation with HTC architectural drafting faculty, has developed a project
. plan for this lot which meets all setback requirements, complements the neighborhood
and incorporates interior features desirable in today's market. A copy of the plans is
attached. The new house will have approximately 1,700 square feet of finished living
area. Features include: a living room, dining room, kitchen, three finished bedrooms
and room for a future fourth bedroom, two bathrooms, and an attached double car
garage. As in the most recently completed home at 7520 Portland Avenue, this home
will have an air to air exchanger to help prevent moisture build up in tightly constructed
homes. Air conditioning will also be installed for sound insulation value.
The amount of the HTC contract for this project will be $93,000. The cost is consistent
with previous projects given design and square footage variabilities, the addition of the
exchanger and air conditioning, and increased lumber prices.
The estimated project costs and funding sources follow:
ACTIVITY AMOUNT FUNDING SOURCE
Acquisition $56,000 CDBG Funds
Demolition $ 4,000 CDBG Funds
HTC Contract $93,000 Proceeds of Sale
Landscaping $ 4,000 Proceeds of Sale
Closing Costs $ 2,000 Proceeds of Sale
TOTAL COST: $159,000
The current contract document was revised, reviewed and found acceptable by legal
counsel.
Although the completed value of the home has not yet been determined by
• independent appraisal, staff estimates that the home will be sold for approximately
$99,000 with a second mortgage from the HRA to a moderate income, first-time buying
family.
Recommended Motion:
It is recommended that the HRA adopt the resolution authorizing the execution of the
HTC contract in the amount of $93,000 for the 1998-99 new construction project at
6241-14th Avenue.
Basis of Recommendation:
1. Plans have been developed for 6241-14th Avenue that will meet site requirements
and program needs of the HRA.
2. The contract provisions are similar to previous contracts with HTC; a summary of
the contract provisions is attached.
3. Administrative changes with HTC have continued to be successful and the most
recent project at 7520 Portland was completed on schedule.
4. HTC has demonstrated a unique ability to provide a desirable product at a more
modest cost than other builders on sites that are challenging to market.
Alternative Recommendation:
Do not authorize execution of the HTC contract.
• Discussion/Decision Mode:
Site work would begin in July 1998 with full construction starting in August to coincide
with the start of the school year.
Respe Ily submitted,
J4ctfi Prosser
EDirector
JDP:cak
0
• HRA RESOLUTION NO.
RESOLUTION AUTHORIZING EXECUTION OF A CONTRACT WITH
HENNEPIN TECHNICAL COLLEGE (HTC) FOR DEVELOPMENT
OF 6241-14TH AVENUE
WHEREAS, the City purchased the property at 6241-14th Avenue, by voluntary
acquisition, and conveyed to the HRA for the purpose of redevelopment, said property
legally described as:
Lot 17, Block 1, Nokomis Gardens Rearrangement of Blocks 1, 2, 3, 4, and 5
Girard Parkview; and
WHEREAS, a project has been proposed as a cooperative effort between the
HRA and HTC; and
WHEREAS, the property at 6241-14th Avenue would be developed with a new
single family home and two car garage; and
WHEREAS, the cost for constructing a new home and garage in accordance
with the plans and specifications is expected to cost $93,000; and
WHEREAS, following completion of construction the property will be sold to a
moderate income, first time buying family.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota that the HRA Chairperson and
Executive Director are authorized to enter into a Construction Agreement with HTC for
an amount not to exceed $93,000 for the construction of a new home and garage at
6241-14th Avenue.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of July, 1998.
Thomas E. Harms, Chair
ATTEST-
0 Michael Sandahl, Secretary
SUMMARY OF
CONTRACT REQUIREMENTS FOR HTC PROJECT AT
6241-14TH AVENUE
• The construction of a new home and two car attached garage at 6241-14th Avenue.
• The professional installation of heating, electrical and plumbing systems.
• Completion by July 1999.
• Supervision of labor and insurance coverage to be the responsibility of HTC.
• Per Minnesota Statute HTC is responsible for a one-year warranty for defects
caused by faulty workmanship or defective materials; a two-year warranty on
installation of plumbing, electrical, heating and cooling systems; and a ten-year
warranty on structural defects.
• Performance standards have been established specifying HTC's responsibilities
concerning timely completion of the home and routine site maintenance during the
construction period:
• By end of December, excavate, place footings and foundation, frame, install
windows and doors, side and roof.
• By end of March, interior wall framing, insulation, gypsum, cabinets and the
majority of plumbing, heating and electrical should be installed.
• By the end of June, concrete steps, sidewalk, brick work, and driveway will be
completed.
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C-241 14th Avenue _ --- --- --
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South View
East View - - -
North View
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HOUSING AND REDEVELOPMENT AUTHORITY
• HRA Letter No. 49
Agenda July 20, 1998
Issue Statement:
Continuation of the public hearing and consideration of a resolution authorizing the
acquisition and disposition of the residual parcel at 76th Street and Penn Avenue.
Background:
A public hearing has been scheduled for the July 20 HRA meeting to sell a residual
parcel to adjoining property owners. A continuance to August 17 is requested because
more time is needed to finalize discussions with Hennepin County and property owners
adjacent to that parcel.
Approximately four years ago, Hennepin County and the City jointly acquired the NE
corner parcel at 76th Street and Penn and Oliver Avenues to make traffic improvements
at this intersection. Two apartment buildings were razed and the right-of-way was
expanded. Vacant parcels remain. One parcel is owned privately and a four unit
apartment building is proposed. The other parcel is owned by Hennepin County.
Recently, the HRA has been in the process of working with the property owners
adjacent to the County owned parcel in order to facilitate redevelopment of the vacant
areas. The residual parcel on Penn Avenue has become an important element to
providing additional off-street parking and green space and improving entrance/egress
to existing parking areas.
• Recommended Motion:
Continue the public hearing to August 17, 1998 at which time the HRA would consider
the adoption of a resolution authorizing:
a) The acquisition of the property from Hennepin County.
b) The disposition of the property by the HRA.
Basis of Recommendation:
Continuation of the public hearing is required to finalize details of the transactions.
Alternative Recommendation:
Do not authorize continuing the acquisition and disposition process.
Discussion/Decision Mode:
The issues will be resolved for the August 17, 1998 HRA meeting.
Respectfully submitted,
Ja s . Prosser
Executive Director
JDP:cak
0
• HRA RESOLUTION NO.
RESOLUTION AUTHORIZING DISPOSITION OF RESIDUAL PARCEL AT
76TH STREET/PENN AVENUE
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota ("HRA") desires to sell certain real property ("Property") pursuant
to and in furtherance of the Apartment Remodeling Program ("Program"); said real
property being described as attached; and
WHEREAS, the HRA authorized acquisition of the Property on July 20, 1998;
and
WHEREAS, the HRA is authorized to sell real property following a public
hearing, that public hearing having been held after proper public notice.
WHEREAS, the sale is contingent on the Planning Commission finding that the
sale is consistent with the Comprehensive Plan, that finding is schedule for August 25,
1998.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
• Authority in and for the City of Richfield as follows:
1) A public hearing has been held, after proper public notice.
2) Upon acquisition of the Property, the property at 7545 Penn Avenue may be sold,
contingent on a finding of Comprehensive Plan consistency from the Planning
Commission.
3) The Chairperson and Executive Director are authorized to execute those documents
which allow the disposition of the Property.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of July, 1998.
Thomas E. Harms, Chair
ATTEST:
•
Michael Sandahl, Secretary
LEGAL DESCRIPTION
Vacant lot at 7545 Penn Avenue
•
The north 52nd ft. of that part of W 182 ft. of S 1/4 of NW 1/4 of SW 1/4 lying S of the N
222 ft. of Section 33, Township 28, Range 24 thereof excluding roads.
The parcel is also defined as a right-of-way. (R.O.W.) for 76th Street.
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9480 ISO. FT.
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__-- _ - ---_ _--- - - ------ -- -- -?- OLD PROPERTYUNE __--
"6TH STREET
REMNANT PARCELS
NORTH
SCALE: 1 NCH a 40 FEET
OATS: 9-19-96
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 48
Agenda July 20, 1998
Issue Statement:
Acknowledgment and consent to the transfer of property from Meridian Properties Real
Estate Development L.L.C., d/b/a TOLD Development Company to The State Teachers
Retirement System of Ohio; Meridian Crossings Office Redevelopment Project, Phase
Background:
Meridian Properties Real Estate Development L.L.C., d/b/a TOLD Development
Company (TOLD) is in the process of selling Meridian Crossings, Phase I, to The State
Teachers Retirement System of Ohio (Purchaser). The Contract for Private
Redevelopment by and between the Richfield Housing and Redevelopment Authority
and TOLD, dated on November 6, 1995, (Redevelopment Contract) provides for the
consent of the HRA as to certain assignments. At this time, TOLD is seeking the
following approvals and consent from the HRA for the aforementioned sale transaction:
1. Approval of the CONSENT TO ASSIGNMENT agreement which assigns Meridian
Crossings, Phase I, property to Purchaser does not constitute a default under the
Redevelopment Contract nor does it alter or affect any payment due under the
Limited Tax Increment Note to TOLD;
2. Approval of the CERTIFICATION AND ESTOPPEL CERTIFICATE which (a.)
acknowledges the HRA's consent of the transfer of property; (b.) acknowledges
compliance with the Redevelopment Contract except for provisions relating to Land
Sale, Construction of Minimum Improvements, and Wage and Job Covenants; (c.)
acknowledges that there are no outstanding defaults or claims; and (d.) verifies
outstanding special assessments, balance due under the Limited Tax Increment
Note, and current market value of property; and
3. HRA consent to the GENERAL WARRANTY ASSIGNMENT OF PROJECT
CONTRACTS AND ASSUMPTION AGREEMENT which assigns all of TOLD's
project contracts, representations, warranties, covenants, and agreements relating
thereto for Phase I to Purchaser.
These documents are attached for review. Also, TOLD will continue to manage the
property utilizing the management services of Escom Properties, Inc.
Recommended Motion:
It is recommended that the HRA adopt a motion which does the following:
a 1. Approves the Consent to Assignment;
2. Approves the Certification And Estoppel Certificate;
3. Consents to the General Warranty Assignment of Project Contracts and Assumption
Agreement; and
4. Authorizes the Chairperson and Executive Director to take any and all actions
necessary to execute the agreements in order to carry out the implementation of the
actions requested by TOLD.
Basis of Recommendation:
1. The Redevelopment Contract provides for the consent of the HRA as to certain
assignments, including the sale of the project property.
2. TOLD has requested that the HRA approve and consent to certain agreements
necessary for the sale transaction of Meridian Crossings, Phase I, to the Purchaser.
3. TOLD is intending to close on the sale of Meridian Crossings, Phase I, on July 22,
1998.
Alternative Recommendation:
There is no alternative recommendation for this action as this activity is permitted under
the Redevelopment Contract.
Discussion/Decision Mode:
TOLD requested the approval and consent of certain agreements in order to process
the Phase I sale transaction in a timely manner.
Respectfully submitted,
James . osser
Executive Director
JDP:cak
CONSENT TO ASSIGNMENT
0 This CONSENT TO ASSIGNMENT ("Assignment") is made as of the day of July,
1998 by and among MERIDIAN CROSSINGS LLC, a Minnesota limited liability company
("Redeveloper"), OTR, an Ohio general partnership, acting as nominee for The State Teachers
Retirement Board of Ohio, a public pension fund created pursuant to the provisions of Chapter 3307
of the Ohio Revised Code ("Purchaser") and THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA, aMinnesota public body
corporate and politic (the "HRA" ).
WITNES SETH:
WHEREAS, Redeveloper's predecessor in interest, Meridian Properties Real Estate
Development LLC, and HRA entered into that certain contract for private redevelopment dated
November 6,1995, as amended by that certain first amendment to contract for private redevelopment
dates as of March 18, 1996, and as further amended by that certain second amendment to contract
for private redevelopment dated as of September 6, 1996, that certain third amendment to contract
for private redevelopment dated as of April 21, 1997 and that certain Letter of Understanding dated
March 19, 1996 (as amended, the "Contract") which assignment of said Contract to Meridian
Crossings LLC , was consented to by the HRA on March 24, 1997 as to property more particularly
described on Exhibit "A" (the "Phase I Property"); and
WHEREAS, Purchaser has agreed to purchase the Phase I Property and all improvements
thereon; and
WHEREAS, the Contract provides for the consent of HRA as to certain assignments; and
WHEREAS, capitalized terms used herein that are not otherwise defined herein shall have
the meanings attributed to them in the Contract;
NOW, THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency ofwhich is hereby acknowledged, the parties hereto agree
as follows:
1. Consent to Assignment. HRA acknowledges that the Redeveloper's obligations
under the Contract accruing subsequent to the date of transfer of Redeveloper's interest in the
Property to Purchaser as to the Phase I Property is to be assigned to Purchaser and hereby gives its
consent thereto. Such assignment shall not constitute a default under the Contract nor in any way
alter or affect Redeveloper's rights to obtain any and all payments due under the Note described in
Article VII of the Contract, which right is specifically reserved by Redeveloper and not assigned
to Purchaser.
2. Parties Bound. This Agreement shall bind and inure to the Benefit of the successors
to and assigns of the parties hereto; provided that the Redeveloper shall not assign its rights and
obligations hereunder without the consent of both the HRA and the Purchaser.
3. Only Written Amendments. This Agreement may not be modified in any manner or
0 terminated except by an instrument in writing executed by the parties hereto.
4. Governing Law. This Agreement shall be governed by and construed under the laws
of the State of Minnesota.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the month,
day and year first written above.
By:
Its:
MERIDIAN CROSSINGS LLC, a Minnesota
limited liability company
Bryant J. Wangard
Manager
Address: Meridian Crossings LLC
6900 Wedgwood Road
Suite 100
Maple Grove, MN 55311
9 Telecopy No.: (612) 420-7574
OTR, an Ohio general partnership, acting as nominee
for The State Teachers Retirement Board of Ohio, a
public pension fund created pursuant to the provisions
of Chapter 3307 of the Ohio Revised Code
By:
Its:
Address: OTR
The State Teachers Retirement System
of Ohio
275 East Broad Street
Columbus, OH 43215
ATTN: Director of Real Estate Assets
Telecopy No.:
2
• THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, MINNESOTA
By:
Its:
By:
Its:
Address:
r-1
•
Telecopy No.:
3
STATE OF MINNESOTA )
. ) SS
COUNTY OF HENNEPIN )
Personally came before me this day of July, 1998, the above-named Bryant J.
Wangard, as the Manager of Meridian Crossings LLC, a Minnesota limited liability company, and
to be known to be the person who executed the foregoing instrument and acknowledged the same
in such capacity.
Notary Public, State of Minnesota
My commission:
STATE OF )
) SS
COUNTY OF )
Personally came before me this day of July, 1998, the above-named
, as the of OTR, an Ohio
general partnership, acting as nominee for The State Teachers Retirement Board of Ohio, a public
pension fund created pursuant to the provisions, and to me known to be the person who executed the
foregoing instrument and acknowledged the same in such capacity.
Notary Public, State of
My commission:
STATE OF )
)SS'
COUNTY OF )
Personally came before me this day of July, 1998, the above-named
, as the of The Housing
and Redevelopment Authority in and for the City of Richfield, Minnesota, and to me known to be
the person who executed the foregoing instrument and acknowledged the same in such capacity.
•
Notary Public, State of
My commission:
4
0 EXHIBIT "A"
Phase I Property
Lot 3, Block 3, CLOVERLEAF ADDITION
Richfield, Minnesota
\J
-JUL. 8. 1998 4:OL_-M KEGLER BROWN HILL NO. 3111 P. 2/3
0 CERTMCATION.AND ESTOPPEL CERTIFICATE
July---, 1998
QTR, an Ohio general partnership
c/o State Teachers Retirement Board of Ohio
275 E. Broad Street
Columbus, Ohio 43215
Re: Contract for Private Redevelopment By and Between The I4ousing and
Redevelopment Authority in and for the City of Richfield ("HRC") and Meridian
Properties Real Estate Development L.L.C., a Minnesota limited liability company
dba Told Development Company ("Meridian") dated November 6, 1995 as recorded
by First Amendment to Contract for Private Redevelopment dated March 18, 1996;
Second Amendment to Contract dated September 6, 1996; and a Third Amendment
to Contract for Private Redevelopment dated April 21, 1997 (the agreement as
amended is hereinafter referred to as the "Redevelopment Agreement")
Gentlemen:
This Certification and Estoppel Certificate is being executed by HRC in connection with
the acquisition by OTR, an Ohio general partnership ("OTIV ), of the Phase I Property (as
defined in the Redevelopment Agreement) from Meridian with the knowledge that OTR, and its
successors and assigns, are relying upon the same in completing said acquisition.
1. HRC hereby consents to the transfer of the Phase 1 Property to OTR.
2. Meridian and/or Meridian Crossing, L.L.C, a Minnesota limited liability company
(hereinafter collectively "Meridian") have complied with all of the obligations of the
Redevelopment Agreement as they pertain to the Phase I Property including but not limited to
those contained in Article III and IV and Section 11.5 thereof.
3. There are no existing or claimed defaults on the part of Meridian or the undersigned
under the terms of the Redevelopment Agreement; and there are no existing or claimed
conditions that with the passage of time or notice, would constitute a default on the part of
Meridian or the undersigned under die terms thereof.
4. Except as set forth above, the Redevelopment Agreement has not been amended,
modified, supplemented or superceded.
5. Upon its acquisition of the Phase I Property, OTR shall have no obligations under the
Redevelopment Agreement with respect to the Phase I Property.
6. As of the date hereof, the total amount of the special assessments which have or will
be levied against the Phase I Property in connection with its current development is S
0
61977AW190629v 1
JUL. 8. 1998 4:04PM KEGLER BROWN HILL N0.3111 R. 3/3
7. As of the date hereof, the current amount owed to Meridian under the Limited
Revenue Tax Increment Note for the Phase i Property is S
s. The current market value assessed for the Phase I Property and improvements thereon
for ad valorem tax purposes is $
9. BRC acknowledges that:
(a) OTR is purchasing Meridian's interest in the Phase I Property.
(b) OTR and its successors and assigns will be relying upon the certification and
statements contained herein and, except for the assurances and certifications set
forth herein, OTR would not make the purchase.
10. This Certification and Estoppel Certificate shall inure to the benefit of OTR and its
successors and assigns and shall be binding upon the undersigned its successors and assigns.
The Housing and Redevelopment Authority of
the City of Richfield, Minnesota
•
Bv_
Its: Chairman
By:
Its: Executive Director
0
Y1977.Wf19""V 1
2
GENERAL WARRANTY ASSIGNMENT OF PROJECT CONTRACTS
AND ASSUMPTION AGREEMENT
Assignment of Project Contracts and Assumption Agreement (this
This General Warranty 199 (the "Closing Date"), by and
"Agreement") is made and executed this day of _ business and
between Meridian Crossings LLC, a Minnesota limited liability company having a
Minnesota a bus 55311
mailing address of 6900 Wedgwood Road, Suite 100, Maple Grove,
("Assignor"), and OTR, an Ohio general partnership, acting as nominee for The State Teachers
Retirement Board of Ohio,. a public pension fund created pursuant to the provisions of Chapter
3307 of the Ohio Revised Code, having its principal place of business at 275 East Broad Street,
Columbus, OH 43215 'Assignee").
Recitals
A. Assignor and Assignee have entered into a Purchase Agreement, dated 1
1997 (the "Purchase Agreement"), pursuant to which Assignor has agreed to convey to Assignee
that certain tract of land more particularly described in the Purchase Agreement
(the the Purchase ,
together with such other property interests as constitute the "Property" (as defined in
Agreement).
B. Assignor desires to assign and to transfer to Assignee all of Assignor's right, title,
and interest in, under, and to all of the Project Contracts (as hereinafter defined), and Assignee
desires to accept such assignment, subject to the terms and conditions of this Agreement and the
Purchase Agreement.
C. The Land is commonly known as Meridian Crossings Phase I.
NOW, THEREFORE, for good and valuable consideration to Assignor in hand paid by
Assignee, the receipt and sufficiency of which are hereby acknowledged, Assignor and Assignee,
intending to be legally bound, do hereby agree as follows:
Section 1. Assignment .of Assignor's Interest in Project Contracts. Assignor hereby
assigns, transfers, and conveys to Assignee, effective as of the "Closing Date" (as defined in the
Purchase Agreement), all of Assignor's right, title, and interest in, under, and to all of the service
and maintenance contracts, management agreements, and other written agreements, including all
amendments and modifications thereto, entered into by Assignor or its agents on it's behalf in
connection with the maintenance, ownership, and operation of the Property that survive the
"Closing" (as defL_:3 in the Purchase Agreement), as more fully escribed on Schedule 1 attached
hereto and made a part hereof (collectively, the Protect Contracts").
• Section 2. Assignor's Representations, Warranties, Covenants, and Agreements.
Assignor represents and warrants to Assignee as follows:
81978.38NF107454 v 12
(a) that each of the Project Contracts, true copies of which have been delivered by
Assignor to Assignee, are in full force and effect;
(b) that Assignor has good right and power to assign the Project Contracts;
(c) that the interests hereby assigned to Assignee are free and clear from all
encumbrances and that Assignor does warrant and will forever defend the same to
Assignee against the lawful claims and demands of all persons whatsoever; and
(d) that no material default exists under the terms of any of the Project Contracts in
connection with any of the conditions, covenants, and other provisions of such
Project Contracts on the part of Assignor to be kept and performed and that no event
has occurred or condition exists that, with the passage of time, the giving of notice,
or both, may result in an occurrence of a material default under the terms of any of
the Project Contracts.
Section 3. Assignee's Covenants and Agreements. Assignee hereby accepts the
foregoing assignment and, by its acceptance, Assignee hereby assumes and covenants and agrees to
keep and to perform all of the terms, conditions, covenants, agreements, and provisions of the
Project Contracts to be kept and performed by Assignor and accruing after the Closing Date.
Section 4. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall for all purposes be deemed to be an original, and all of which are
• identical. All such counterparts together shall constitute but one instrument.
Section 5. Parties in Interest. This Agreement shall be binding upon, and shall inure to
the benefit of, Assignor, Assignee, and their respective legal representatives, successors, and
assigns.
Section 6. Captions. The captions or headings at the beginning of each section of this
Agreement are merely guides or labels for the convenience of the parties to assist in identifying
those sections, are not intended to be a part of the context of this Agreement, and shall not be
deemed to modify, to explain, to enlarge, or to restrict any of the provisions of this Agreement.
•
81978.36Mt107454 v 12
2
IN WITNESS WHEREOF, Assignor and Assignee have executed and delivered this
General Warranty Assignment of Project Contracts and Assumption Agreement on the date first
written above.
ASSIGNOR:
Meridian Crossings LLC, a Minnesota limited
liability company
10
By:
ASSIGNEE:
OTR, an Ohio general partnership, acting as
nominee for The State Teachers Retirement Board
of Ohio, a public pension fund created pursuant to
the provisions of Chapter 3307 of the Ohio Revised
Code
By:
Stephen A. Mitchell, general partner
81978.3"l074V v 12
3
•
•
r, 1
81978.3619107454 v 12
SCHEDULEI
Project Contracts
The International Dispatch, Communication and Command Centers (DC)
--Monitoring of Fire Alarm System and Sprinkler System
Muzak Limited Partnership
--Music Services
AW Disposal
-Waste Removal
Plantscape, Inc.
--Monthly Plant Lease and Weekly Plant Service
ABM Janitorial Services
-Janitorial and other related services
Contract for Private Redevelopment dated November 6, 1995 **
First Amendment to Contract for Private Redevelopment dated March 18, 1996
Second Amendment to Contract for Private Redevelopment dated September 6, 1996
Third Amendment to Contract for Private Redevelopment dated April 21, 1997
Letter of Understanding dated March 19, 1996
Assignment consented to by HRA on March 24, 1997
* * (The Assignment of this Contract is specifically subject to Assignor's retention of all payments due now and in the
future pursuant to Article 7 of said Contract for Private Redevelopment.)
0
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 47
Agenda July 20, 1998
Issue Statement:
Issuance of a Certificate of Completion for Meridian Crossings, Phase I.
Background:
The HRA entered into a Contract for Private Redevelopment with Meridian Properties
Real Estate Development L.L.C., d/b/a TOLD Development Company, for construction
of the Meridian Crossings office redevelopment project on November 6, 1995. Section
4.7 of the Contract discusses the Certificate of Completion. It indicates that a certificate
is to be issued for each phase with the issuance process being initiated by the
developer. The HRA approved concept plans for Phase I in 1995.
TOLD has requested the issuance of the Certificate of Completion for Meridian
Crossings, Phase I, as it intends to close on the sale of Phase I to The State Teachers
Retirement System of Ohio on July 22, 1998. Construction, in accordance with the
concept plans, is complete. There are no outstanding issues which would impede the
release of the Certificate of Completion for this phase of the project. Certificates of
Occupancy for the building are being handled separately by the City's Inspection
division as interior spaces are being finalized.
Recommended Motion:
Adopt a motion to approve the attached resolution which authorizes the execution of
the Certificate of Completion for Meridian Crossings, Phase I, by the Executive Director
and Chair.
Basis of Recommendation:
1. Construction of the Phase I improvements is complete and in accordance with the
approved concept plans.
2. TOLD has requested issuance of the Certificate of Completion for Meridian
Crossings, Phase I.
3. TOLD is intending to close on the sale of Meridian Crossings, Phase I, on July 22,
1998.
Alternative Recommendation:
There is no alternative recommendation for this action.
Discussion/Decision Mode:
TOLD requested issuance of the Certification of Completion for Meridian Crossings,
Phase I, in order to process the Phase I sale transaction in a timely manner.
Respectfully submitted,
Jame Prosser
Execu ' Director
JDP:cak
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING EXECUTION OF A
CERTIFICATE OF COMPLETION FOR
MERIDIAN CROSSINGS, PHASE I
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) entered into a Contract for Private Redevelopment
(Contract) with Meridian Properties Real Estate Development L.L.C., a Minnesota
limited liability company, d/b/a TOLD Development Company (Developer), dated
November 6, 1995, pursuant to and in furtherance of the ILN Redevelopment Project
heretofore adopted by the City and the Richfield Housing and Redevelopment
Authority; and
WHEREAS, the Contract obligated the Developer to construct certain
improvements to the property identified in that Contract; and
WHEREAS, Section 4.7 of the Contract required the HRA to furnish the
Developer with a Certificate of Completion upon completion of the Phase I construction
in accordance with Concept Plans; and
WHEREAS, the Contract establishes the form for the Certificate of Completion in
Exhibit B; and
WHEREAS, staff has found the improvements to be in accordance with the
terms of the Contract.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield that the Executive Director and HRA Chair are
directed to execute the Phase I Certificate of Completion and deliver same to the
Developer.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of July, 1998.
Thomas E. Harms, Chair
•
ATTEST:
Michael Sandahl, Secretary
CERTIFICATE OF COMPLETION
•
The undersigned hereby certifies that Meridian Properties Real Estate
Development L.L.C., a Minnesota limited liability company, d/b/a TOLD Development
Company has fully and completely complied with its obligations under Article IV of that
document entitled "Contract for Private Development," dated November 6, 1995,
between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF RICHFIELD and MERIDIAN PROPERTIES REAL ESTATE DEVELOPMENT
L.L.C., a Minnesota limited liability company, d/b/a TOLD Development Company, with
respect to construction of the Improvements located on the tract of land described in
the attached Exhibit A in accordance with the requirements of such document and is
released and forever discharged from its obligations to constructing the Improvements
under such above-referenced Article on the above-referenced tract.
DATED:
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
By
Its Chairperson
By
Its Executive Director
0
EXHIBIT A
Legal Description
Lot 3, Block 3, CLOVERLEAF ADDITION, according to the recorded plat thereof,
Hennepin County, Minnesota, subject to the following easement:
An easement for driveway purposes over, under and across that part of Lot 3, Block 3,
CLOVERLEAF ADDITION, according to the recorded plat thereof, Hennepin County,
Minnesota described as beginning at the most northerly corner of said Lot 3; thence
southeasterly a distance of 48.29 feet along the northeasterly line of said Lot 3 to the
northeast corner of said Lot 3; thence South 0 degrees 07 minutes 35 seconds West
assumed bearing, along the east line of said Lot 3, a distance of 55.25 feet; thence
South 39 degrees 33 minutes 34 seconds West a distance of 29.02 feet; thence
southwesterly a distance of 59.63 feet on a tangential curve concave to the northwest
having a radius of 495.50 feet and a central angle of 6 degrees 53 minutes 45 seconds;
thence South 40 degrees 36 minutes 00 seconds East a distance of 41.88 feet; thence
South 48 degrees 20 minutes 27 seconds East a distance of 42.30 feet to said east line
of Lot 3; thence South 0 degrees 07 minutes 35 seconds West, along said east line of
Lot 3, a distance of 45.42 feet; thence North 48 degrees 20 minutes 27 seconds West a
distance 74.71 feet; thence North 40 degrees 36 minutes 00 seconds West a distance
of 103.62 feet to the northwesterly line of said Lot 3; thence northeasterly along said
northwesterly line of Lot 3 to the point of beginning.
fo CURRENT ADDRESS: 7615 Nicollet Avenue
•
0
PROPOSED ADDRESSES:
CURRENT LEGAL :
PROPOSED LEGAL:
7617, 761% 7621 Nicollet Avenue
Lots 13 and 14, Block 4
A.G. Bogen Company's Nicollet
Avenue Addition
Lot 1, Block 1 Ferch Addition
Lot 2, Block 1 Ferch Addition
Lot 3, Block 1 Ferch Addition
p:rr-new:7615addr
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 46
Agenda July 20, 1998
Issue Statement:
Selection of a developer and authorization to negotiate agreements for 6901 Penn
Avenue development site.
Background:
The 6901 block of Penn Avenue and the intersections of 70th Street and Penn and
Russell Avenues have been subject to flooding during periods of heavy rainfall. In
1994, the City Council authorized staff to begin acquiring properties from willing sellers
in order to build a stormwater retention pond in the 6901 Penn Avenue block. Such a
pond would relieve flooding in the vicinity of 70th Street and Russell Avenue as well as
70th Street and Penn Avenue. Five of the seven homes have been acquired and
negotiations are underway for the purchase of the last two. A condemnation petition
has also been filed following action by the City Council should negotiations not be
fruitful. Title and possession of these two parcels will be near the end of September.
There will be residual land which could be developed with townhouses or other form of
attached housing. The City Council is currently in the process of conveying this site in
total to the HRA. As the redevelopment arm of the City Council, it is appropriate for the
• HRA to become the owner of the property. The HRA would then select a developer
and convey the property. (Sale of City property is by transitory ordinance which
requires two readings and publication of the ordinance. The ordinance then becomes
effective 30 days after the publication.)
The concept is that the selected developer would construct both the "dry" stormwater
collection pond and the housing.
The developer would pay for the site and receive a credit against that payment for the
pond. Any residual dollars would be returned to the City's stormwater utility, which has
funded the project.
Several weeks ago, staff solicited proposals from developers. Two were received: one
from Alan Chazin Homes; and one from Richfield State Agency (RSA) and Skaaden
Helmes Architects.
The Chazin proposal includes a "dry" pond in the middle and along the easterly edge of
the site and four twinhomes (eight units of housing). Each unit would have a base price
in the $120,000 range. Enclosed parking for two cars per unit, and eight visitor parking
stalls would be provided. The units have two bedrooms (third bedroom alternative on
the first floor) and are intended for couples or families. The first two unit structure would
• be constructed to function as a model. The additional units would be built as they are
sold. Chazin is proposing to pay $80,000 for the land.
. The RSA proposal has two alternative designs. One alternative consists of a "dry" pond
in the middle of the project flanked by 12 townhouse type units. The other alternative
includes a pond along the back property line with two rows of townhouses facing Penn
Avenue. The units in these alternatives have a base price of $100,000 to $140,000.
Parking is proposed to be in two detached garages, each with six stalls. There are 18
parking stalls proposed for the 12 units. These are one to two bedroom units. The
units are intended for single professionals or couples. RSA did not present a purchase
price, but suggested that the price be negotiated in relation to site development costs.
The site plans for the two developments are attached.
Two neighborhood open houses and one meeting were held concerning the
redevelopment of this block. The open house was held on April 7, 1998. The people
within several blocks of the development site were notified. Eleven people attended.
There were no development proposals to review at this meeting. The attendees
expressed concerns about the site and development preferences.
A meeting was held on June 24, 1998. Only property owners who abut the rear portion
of the property were invited (Oliver Avenue addressees). Three property owners
attended the meeting. They were asked if they had concerns about the loss of the
mature oak trees on the site. There was no consensus that the loss of the oaks was a
• critical issue. The main issue was which proposal was more compatible with the
neighborhood.
On July 6, 1998, an open house was conducted to allow the two developers to present
their plans and answer questions. The event was attended by about 12 people. The
neighbors commented on the proposals by filling out response sheets. Only one
neighbor preferred the Richfield State Agency proposal. The others preferred the
Chazin proposal. Three phone calls were received in response to the meeting notice.
All three callers preferred the Chazin proposal. Construction would begin this fall with
the stormwater pond and the "model" twinhome.
Recommended Motion:
Select Alan Chazin Homes as the developer for vacant land in the 6901 block of Penn
Avenue and direct staff to negotiate the appropriate agreements.
Basis of Recommendation:
1. Alan Chazin Homes has experience in building small and large projects and
received positive recommendations from city officials in Eden Prairie, St. Paul, and
St. Anthony.
2. The Chazin proposal is more compatible with the surrounding neighborhood.
0
. 3. Twinhomes similar to those proposed have been built along Penn Avenue in the
vicinity of this proposal.
4. Residents in the immediate area have expressed a preference for the Chazin
proposal.
Alternative Recommendation:
1. Select the Richfield State Agency as the developer.
2. Defer selection and seek other developers.
Discussion/Decision Mode:
The Richfield State Agency proposal is based on a European housing concept called
Atilear Housing. It is similar to an artist loft in that the main living space is large and
open with very few walls. While this is an intriguing concept, it is not market tested. A
more market-proven product appears to be the appropriate response for this site at this
time.
Negotiations with the selected developer will address the value of the land and the cost
of installing the "dry" stormwater pond. Assuming successful negotiations, the HRA will
be asked to consider for approval the resulting agreements, hopefully at the August
meeting.
• Respectfully submitted,
Jam Prosser
Exec i e Director
JDP:cak
0
11
•
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HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 45
Agenda July 20, 1998
Issue Statement:
Approval of Stipulation of Settlement for 6724 Lyndale Avenue; Gramercy Park
Cooperative at Lake Shore Drive.
Background:
Entering into a Stipulation of Settlement is a process which parties to a condemnation
can use to negotiate an agreement. The Stipulation, once fully executed by all parties,
is submitted to the court for approval. With approval, the condemnation process ends.
Attached is a Stipulation which is being negotiated with Mr. Donald Hules. The
Stipulation states that Mr. Hules will receive $145,000 in return for clear title to his
property. It also provides that Mr. Hules will receive compensation for his appraisal
($1,500) and up to $1,000 for attorney fees incurred as a result of this transaction. He
has agreed to these basic terms.
A real estate appraisal completed for the HRA set the value of the Hules property at
$109,500. However, the administrative cost of completing condemnation could range
from $15,000 to $20,000. The value of the property would then be determined by three
• condemnation commissioners. It is difficult at best to determine the commissioner
award. Gramercy Inc. is agreeable to the $145,000 plus to fix the cost of this property.
There are other provisions which have been agreed to by Mr. Hules and staff is
recommending HRA approval.
Recommended Motion:
The HRA approve the Stipulation of Settlement Parcel 1, 6724 Lyndale Avenue and
authorize the Chair and Executive Director to execute same in substantially the form as
that which is attached to this letter.
Basis of Recommendation:
1. The property is required for the Gramercy project to proceed.
2. Gramercy Inc. would pay all the costs associated with this Stipulation plus the costs
of relocating the tenant.
3. Approval of the Stipulation would fix the exposure of Gramercy Inc. on this property.
Alternative Recommendation:
1. Delay consideration of this matter.
0 2. Refuse to authorize execution of the Stipulation.
Discussion/Decision Mode:
Approval of the Stipulation will help keep the project on track for a November
construction start.
Respectfully submitted,
Jam f'e rosser
Exeire ctor
JDP:cak
•
0
•
•
Case Type: Condemnation
STATE OF MINNESOTA
COUNTY OF HENNEPIN
vs. )
Donald N. Hules, Sr., et al., )
Respondents. )
corporate and politic, ) STIPULATION OF SETTLEMENT
Petitioner, ) PARCEL 1
6724 LYNDALE AVENUE SOUTH
DISTRICT COURT
FOURTH JUDICIAL DISTRICT
---------------------------------
The Housing and Redevelopment Authority in ) File No.
and for the City of Richfield, a public body )
THIS AGREEMENT is entered into this day of , 1998, by and between
the HOUSING AND REVEDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, a public body corporate and politic under the laws of Minnesota, located at 6700
Portland Avenue South, Richfield, MN 55423, Petitioner herein, ("HRA") and DONALD N.
HULES, SR., c/o Crickett Photo, 9840 Lyndale Avenue South, Bloomington, MN, Respondent
herein ("HULES").
1. RECITALS
1.01. HULES is the owner in fee simple of the real estate located at 6724 Lyndale Avenue
South, Richfield, Minnesota, which is identified as Parcel 1 in the above captioned matter and is
legally described on Exhibit A attached hereto and incorporated herein ("Subject Property")
1.02. HRA desires to acquire the Subject Property pursuant to this Agreement (and, if and
•
to the extent applicable), the above captioned proceeding.
1.03. HULES represents that he is the owner in fee simple of the Subject Property
RJL-146475
RC125-184
1
pursuant to Certificate of Title No. 627086 on file in the Office of the Registrar of Titles in and for
the County of Hennepin subject to the interests described in Exhibit A attached hereto.
1.04. HULES has claimed that the value of the Subject Property is $145,000 or more.
1.05. HULES represents that the Subject Property is occupied by L.R. Bloomington,
L.L.C., a North Dakota Limited Liability Company ("Lessee") pursuant to a written lease.
1.06. The HRA and HULES desire to settle and compromise HULES's claim for damages
due to the Taking in the above captioned proceeding and to agree upon the terms under which HRA
may acquire the Subject Property in accordance with the provisions of this Agreement.
H. AGREEMENT
NOW, THEREFORE, in consideration of the premises, their mutual promises and other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
9 parties hereto hereby agree as follows:
2.01. Incorporation of Recitals. The foregoing recitals are made a part of this agreement.
2.02. Total Purchase Price. HRA agrees to condemn all right, title and interests in the
Subject Property in an eminent domain proceeding. HRA and HULES agree that HRA shall pay
HULES a total of $145,000 ("Purchase Price") at such time as HRA acquires title and possession of
the Subject Property pursuant to the eminent domain proceedings as total consideration for the
Subject Property.
2.03. Transfer of Title. (a) HULES agrees that, at the request and option of HRA, at any
time after commencement of said eminent domain proceeding, HULES shall execute a warranty
deed conveying marketable title of the Subject Property, free and clear of all encumbrances, except
the permitted encumbrances listed in Section 2.09 ("Permitted Encumbrances"), upon payment by
HRA of the Purchase Price less any amount deposited by HRA with the District Court
RJL-146475 2
RC125-184
0 Administrator in said eminent domain proceeding.
(b) For the purpose of said eminent domain proceeding, RULES hereby consents to
jurisdiction of the Court, waives objections to public purpose, necessity, and use of the quick take
provisions of Minn. Stat. § 117.042, and agrees to the entry of an order of the District Court
transferring title and possession of the Subject Property to HRA upon the payment or deposit by
HRA of the Purchase Price (as the total compensation to be awarded to RULES in the eminent
domain proceeding). Upon request of HRA, RULES shall execute (in recordable form) such
additional documents (including but not limited to deeds and stipulations to issuance of
commissioners' awards) as counsel for HRA may prepare and request in order to pass marketable
title of the Subject Property from RULES to HRA, free and clear of all encumbrances except the
Permitted Encumbrances, as soon as legally permissible (in the opinion of counsel for HRA) after
filing of the condemnation petition in the eminent domain proceeding.
2.04. Transfer of All Interests. In consideration for the Purchase Price, RULES shall
deliver, transfer and assign to HRA all its right, title, interest and the right of possession in the
Subject Property (including the improvements, fixtures and equipment therein and thereon) free of
all encumbrances except the Permitted Encumbrances.
2.05. Waiver of Other Claims. In consideration for the payment by HRA of the Purchase
Price and the reimbursement by HRA of appraisal fees incurred by RULES not to exceed $1,500
and attorneys fees based upon approved invoices, but not to exceed $1,000, RULES waives any and
all claims he may have in connection with HRH's acquisition of the Subject Property, including but
not limited to damages, interest, attorneys fees, statutory appraisal fees, relocation benefits, costs
and disbursements to which RULES may otherwise be entitled or claim to be entitled.
2.06. Waiver of Further Proceedings. HRA and RULES both waive the right to all
R7L-146475 3
RC125-184
• further hearings, proceedings and appeals in this matter except as either may elect in order to
enforce or carry out the provisions of this Agreement.
2.07. Notices. All notices and demands required hereunder shall be in writing and shall
be deemed given either when personally delivered or when deposited in the United States mail, as
certified or registered mail, postage prepaid, return receipt requested, by facsimile transmission, or
by first-class mail as evidenced by an Affidavit of Service, addressed as follows:
If to HULES: Donald N. Hules, Sr.
c/o Crickett Photo
9840 Lyndale Avenue South
Bloomington, MN 55431
Facsimile No.: (612)
If to HRA: Richfield HRA
City Hall
6700 Portland Avenue South
Richfield, MN 55423
Attention: Bruce Palmborg
Facsimile No.: (612) 861-8974
With a copy to: Kennedy & Graven, Chartered
470 Pillsbury Center
200 South Sixth Street
Minneapolis, MN 55402
Attention: Robert J. Lindall
Facsimile No.: (612) 337-9310
2.08. Miscellaneous Provisions.
(a) Breach. In the event either party breaches or defaults in its performance
hereunder, the other parry shall have the right to pursue all its remedies under this
Agreement, in the eminent domain proceeding, or at law, or any or all of the foregoing, to
seek enforcement of this Agreement, including, without limitation, the right to a decree for
• specific performance or an order to compel performance in the above captioned matter.
RJL-146475 4
RC125-184
• (b) Entire Agreement. This Agreement constitutes the entire agreement
between the parties hereto with respect to the transaction and it supersedes all prior
understandings or agreements between the parties.
(c) Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective heirs, personal representatives, successors
and assigns.
(d) Survival of Warranties. All the covenants, agreements, representations,
and warranties made by the parties in this agreement or in any document or instrument
delivered by the parties pursuant to this Agreement shall survive this agreement and the
transfer of title of the Subject Property to HRA.
(e) Waiver, Modification. The failure by either parry to enforce its rights
• hereunder shall not constitute a waiver of said party's right to demand future performance of
the provisions hereof. No modification or extension of this Agreement shall be binding
unless in writing and signed by the parties.
(f) Time of Essence. Timely performance is essential in this Agreement and
each of its provisions.
(g) Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Minnesota.
2.09. Permitted Encumbrances. Notwithstanding any other provision of this Agreement
to the contrary, HRA shall not be obliged to pay or deposit the Purchase Price until, by doing so,
HRA will obtain marketable title and possession of the Subject Property, free and clear of all
encumbrances, except for:
• (a) Building and zoning laws, ordinances and State and Federal regulations.
RJL-146475 5
RC125-184
(b) Restrictions relating to use or improvement of the Subject Property not
subject to unreleased forfeiture.
(c) Reservation of any minerals or mineral rights to the State of Minnesota.
(d) Utility easements.
2.10. Lessee. HRA has advised HULES of HRA's desire and intent to acquire the
Subject Property free and clear of the rights of tenants. HULES has represented to HRA that the
Subject Property is subject to a lease in favor of L.R. Bloomington, L.L.C., a North Dakota Limited
Liability Company. If HULES is not able to deliver the Subject Property to HRA free and clear of
said lease agreement upon terms and conditions acceptable to HULES and HRA, HULES and HRA
agree that HRA will acquire the Subject Property by eminent domain proceedings pursuant to
Minnesota law and consistent with this Agreement, with the understanding that HRA will have no
• duty under this Agreement to pay damages, inclusive of amounts paid to all parties, for the taking of
the Subject Property, in excess of the amount of the Purchase Price and that HULES will hold HRA
harmless from the claims of other parties for damages in the eminent domain proceeding..
2.11. Real Estate Taxes and Special Assessments.
(a) RULES shall pay the real estate taxes due in the year 1998 with respect to
the Subject Property and all installments of special assessments which are payable
therewith.
(b) HULES shall pay the entire unpaid balance of special assessments levied or
pending levy with respect to the Subject Property as of the date of transfer of title of the
Subject Property to HRA.
(c) HRA shall pay all real estate taxes payable with respect to the Subject
0 Property in 1999 and each year thereafter.
RJL-146475 6
RC125-184
. (d) HRA shall pay all special assessments which are levied with respect to the
Subject Property after the transfer of title of the Subject Property to HRA, except those
pending levy as of the date of said transfer of title.
2.12. Risk of Loss. In the event the structure on the Subject Property is destroyed or
substantially damaged by fire or any other cause before the date of transfer of title of the Subject
Property to the HRA, this agreement shall become null and void, at the HRA's option, and all
monies paid hereunder or otherwise with respect to the Subject Property shall be returned to HRA.
2.13. Adiustment of Rents, Utilities. Except as provided in Section 2.11 hereof, all rents,
utilities and other revenues and expenses related to operation of the structure on the Subject
Property shall be adjusted to the date of transfer of title of the Subject Property to HRA.
2.14. Fixtures and Personal Prop ertv. The property being purchased at the above address
0 by HRA from RULES pursuant to this Agreement includes the following property, if any, owned
by RULES and used and located on said property; garden bulbs, plants, shrubs, and trees; storm
sash, storm doors, screens and awnings; window shades, blinds, traverse and curtain and drapery
rods; attached lighting fixtures and bulbs; plumbing fixtures, water heater, heating plants (with any
burners, tanks, stokers and other equipment used in connection therewith), built-in air conditioning
equipment, electronic air filter, water softener, built-in humidifier and dehumidifier, liquid gas tank
and controls (if the property of RULES, sump pump; attached television antenna, Cable TV jacks
and wiring; BUILT-INS: dishwashers, garbage disposals, trash compactors, ovens, cook top stoves,
microwave ovens, hood fans, Intercoms; ATTACHED: carpeting; mirrors, garage door openers
and all controls; smoke detectors; fireplace screens, doors and heatilators; AND: the following
personal property:
• 2.15. Mechanics Liens. RULES warrants that prior to the transfer of title of the Subject
R7L-146475 7
RC125-184
• Property to HRA, payment in full will have been made for all labor, materials, machinery, fixtures
or tools furnished within the 120 days immediately preceding the transfer of title in connection with
construction, alteration or repair of any structure on or improvement to the Subject Property.
2.16. Hazardous Substances. RULES represents that upon knowledge and information,
since his purchase of the Subject Property: (a) no hazardous substances have been spilled or
released on the Subject Property; and (b) there are no underground storage tanks on the Subject
Property.
2.17. Well. RULES represents that there are no wells located on the Subject Property.
2.18 Contingency. HRA may elect to rescind this Agreement at any time prior to a
determination by HRA that GRAMMERCY CORPORATION is ready, willing and able to perform
pursuant to a purchase agreement between HRA, as seller, and GRAMERCY CORPORATION, as
buyer of the Subject Property. HRA also reserves the right to dismiss the eminent domain
proceeding at any time prior to HRA taking title of the Subject Property by deed or pursuant to the
eminent domain proceeding.
•
R7L-146475 8
RC125-184
0 DONALD N. HULES, SR.
By:
Donald N. Hules, Sr.
THE HOUSING AND
REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF
RICHFIELD
And By:
Name
PATRICIA HULES, SPOUSE OF DONALD
N. HULES, SR.
Signature
By:
Patricia Hules
Title
KENNEDY & GRAVEN, CHARTERED
And
By:
Robert J. Lindall, #63277 Name
Corrine H. Thomson, #149743
470 Pillsbury Center
200 South Sixth Street
Minneapolis, MN 55402 Signature
(612) 337-9219
ATTORNEYS FOR THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND Title
FOR THE CITY OF RICHFIELD
17-j
R7L-146475 9
RC125-184
•
EXHIBIT A
Parcel No. 1 (Certificate of Title No. 627086) (PID No. 27-028-24-32-0010):
Property Address: 6724 Lyndale Avenue South, Richfield, Minnesota
Description of Subiect Property:
Commencing at a point on the Southerly line of Lot 23, Block 3, Fairwood Shores, at a
point 75 feet West, measured along the South line of said Lot 23 from the Southeast corner
thereof; thence East along the South line of said Lot 23 a distance of 75 feet to the Southeast
corner thereof; thence Northeasterly along the East line of said Lot 23 a distance of 44 feet;
thence Northwesterly a distance of 64.4 feet to a point distant 78.4 feet Northeasterly from
the point of beginning, thence Southwesterly a distance of 78.4 feet to the point of
beginning, according to the plat thereof on file or of record in the Office of the Registrar of
Titles in and for Hennepin County, Minnesota.
Interests Being Acquired
•
E
Name Nature of Interest
Donald N. Hules, Sr. Fee owner
Patricia Hules Inchoate Interest
Town & Country Bank - Newport Mortgagee
L.R. Bloomington, L.L.C., a North Dakota
Limited Liability Company Lessee
City of Richfield Special Assessments, easements
County of Hennepin Real Estate Taxes
All other parties unknown, together with
unknown heirs or devisees and spouses, if any Any right, title or interest in the Subject
Property
RJL141234
BL130-49
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 44
Agenda July 20, 1998
Issue Statement:
Adoption of a resolution authorizing condemnation and quick take for six, real property
interests; Gramercy Park Cooperative at Lake Shore Drive.
Background:
Gramercy Corporation is undertaking land assembly for Gramercy Park Cooperative at
Lake Shore Drive. The site area is the VFW Post 5555 property at 710 Lake Shore
Drive, and the Hules property at 6724 Lyndale Avenue. To proceed with the
development, there are a number of real estate interests which must be acquired in fee
title or temporary takings. Attached is a list of each property and the requisite real
property interest together with a map indicating the location of each. Following that
attachment is the resolution which, when approved by the HRA would authorize the
condemnation quick take process to begin.
Recommended Motion:
Adopt the attached condemnation quick take resolution to secure the identified real
estate interests in Parcels One, Two, Three, Six, Seven and Eight.
Basis of Recommendation:
1. Gramercy has negotiated a purchase of the VFW Post 5555 and has requested that
the HRA undertake condemnation activities for related real estate interests.
2. Staff has been in contact with all the real estate owners.
3. The HRA has the authority to condemn these real estate interests under state law.
4. Gramercy Corporation will be paying all costs associated with the proposed actions
under terms of the Contract for Private Development.
Alternative Recommendation:
1. Delay consideration of the resolution.
2. Refuse to authorize condemnation.
Discussion/Decision Mode:
Action on this item at the July meeting would provide title to these properties in a timely
manner such that construction could begin as scheduled in November.
submitted,
ReVe
Is Jam osser
Exer
ector
JDP:cak
REAL ESTATE INTERESTS REQUIRED FOR THE PROJECT
Parcel One:
Property Address: 6724 Lyndale Avenue South; Labor Ready is tenant
Legal Description of Property and Description of Taking:
Taking in fee simple absolute.
Other Information: The tenant's interest under the lease can only be terminated
by a condemnation action. The tenant would be eligible for relocation assistance
paid by Gramercy, Inc.
Parcel Two:
Property Address: 710 Lake Shore Drive; VFW Property
Legal Description of Property Interests to be Acquired:
. Easement in favor of Northern States Power Company burdening Parcel Two for
the benefit of Parcel One.
Other Information:
Condemnation is needed to remove the easement.
Parcel Three:
Property Address: 710 Lake Shore Drive; VFW Property
Property Interests to be Acquired:
Drainage easement burdening Parcel Three for the benefit of Parcel Seven and
other Property.
Other Information:
Parcel seven is the Big Wheel Rossi property at 6700-18 Lyndale Avenue.
Apparently the easement was created across the VFW properly (before the VFW
was constructed) to provide drainage from the Big Wheel site.
0 Parcel Six:
Pro perty Address: Unassigned; Alley
Pro perty Interests to be Acquired:
Fee simple absolute ownership of alley adjoining northeasterly side of the
project for construction and for continued existence of an underground parking
garage (subject to continued use of alley) and temporary easement precluding
use of alley for 18-month period beginning September 28, 1998.
Other Information:
A portion of the co-op below ground parking will be constructed beneath the
alley. The alley will be out of service due to excavating and construction. Once
the parking facility is constructed, the alley surface will be restored for use. The
co-op would own subterranean rights.
Two households fronting on Lake Shore Drive require alley access for their
garages. While the alley is out of service, the Contract for Private Development
with Gramercy requires them to install a paved temporary alley from Graham
Avenue across the HRA owned property behind Big Wheel Rossi. Gramercy is
required to remove that pavement after the permanent alley is placed back in
. service.
Parcel Seven:
Property Address: 6700-6718 Lyndale Avenue South; Big Wheel Rossi
Property Interests to be Acquired:
Temporary construction easement over the southerly portion of Lots 1 through 5,
Block 3, Fairwood Shores, adjoining and northerly of the alley (subject to owners
continued use of existing building except doors opening to easement area) for
purpose of grading, potential foundation shoring, anchoring and construction
access for a 14-month period beginning September 28, 1998.
Other Information:
This easement is needed because the underground garage excavation will come
within a few feet of this building which does not have a basement.
Parcel Eight:
Property Address: 6639 Lake Shore Drive; Residence immediately west and
north of VFW.
Property Interests to be Acquired:
Temporary Construction Easement over Public Walk Lying Along the Northwest
Side of the Site for a 18-month period beginning September 28, 1998.
Other Information:
This is a temporary taking of a public right-of-way between the VFW property
and the single family residence. It is a sensitive issue, however, because the
residents have incorporated the undeveloped right-of-way into their yard.
Conversations have taken place between staff and the residents and their
attorney. This is a public right-of-way by virtue -of the City at same time in the
past having obtained an easement from the residence and the VFW. Therefore,
the underlying fee is owned by the two adjoining properties. Thus, the need for
the temporary easement.
•
0
GRAMERCY CONDEMNATION PARCELS
OTHER RELEVANT PROPERTIES
Three HRA-owned lots over which temporary alley
will be constructed for acces to the two single
family homes on`Lake Shorg Drive.
%
%
%
PARCEL 6 % %
i
'Alley north of VFW (Taking property in fee /
simple absolute for construction and continued /
existence of underground parking.) r /
Ql CIRCLE PL.
1
140k /
`* PARCEL 7
6700-18 Lyndale Ave. - Shaller property -
i / "Big Wheel" N
/ (Taking temporary construction easement
for potential foundation & shoring.)
i i
ss39 ? ? '
PARCEL 2 A 3 /
716 Lake Shore [rive - VFW p operty /
Making drainage easement and utility easement.
PARCEL 8 .4pz /
6639 Lake Shore Drive - Davis property -
Residence west of VFW /
(Taking temporary construction easement d
over platted public walkway located /
between residence and VFW.)
PARCEL 1
6724 Lyndale Ave. - Hules property - "Labor Ready"
(Taking property in fee simple absolute.)
l
/O
co
4D
OQ
sz
-19
NORTH
SCALE: 1" = 100'
DATE: 7-14-98
0 HRA RESOLUTION NO.
RESOLUTION AUTHORIZING EMINENT DOMAIN PROCEEDINGS
TO ACQUIRE CERTAIN REAL PROPERTY
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 HRA adopted a redevelopment plan (the "Redevelopment Plan")
for the Richfield Redevelopment Project Area on May 17, 1993, and said plan was
approved by the Richfield City Council on June 14, 1993; and
WHEREAS, the HRA adopted a tax increment financing plan (the "TIF Plan") for
the area in the City of Richfield generally known as The Gramercy Redevelopment Tax
Increment Financing District within the Richfield Redevelopment Project Area (the
"Project Area") which has been found by the City Planning Commission to be consistent
with the City's Comprehensive Plan, and which was approved by the City Council on
June 22, 1998; and
WHEREAS, the Plans, as modified, contemplate the acquisition of certain real
property interests (the "Property") which are located in the Project Area and which are
more particularly described in Exhibit A, attached hereto and incorporated herein; and
WHEREAS, the HRA has authorized the execution of a contract for private
development (the "Contract") of land lying within the Project Area (including, but not
limited to the Property); and
WHEREAS, in order to meet anticipated construction deadlines for the
redevelopment project contemplated by the Contract, it is necessary for the HRA to
acquire title to and possession of the Property by the earliest date permitted in
accordance with Minn. Stat. $ 117.042.
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 real estate interests which are described in Exhibit A to
this resolution ("Property") in order for the HRA to carry out the purposes of the Plans,
as modified, and the Act, to eliminate and prevent the development or spread of
01 conditions of blight found to exist by the City and the HRA and to assure full utilization
of property which is vacant, unused, underused, and inappropriately used.
2. Acquisition of the Property 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 delay under
Minnesota Statutes, Section 117.042, to acquire title to and possession of the Property
prior to the filing of a final report of commissioners.
4. The HRA's attorney and staff are authorized and directed to commence eminent
domain proceeding to acquire the Property, pursuant to Minnesota Statutes, Section
117.042 and to pay to the owner(s) or into court, a sum of money to secure
compensation to the owners of the Property, which amount shall be equal to petitioner's
approved appraisal of value for each of the respective portions of the Property, as
determined by staff.
5. The Property to be acquired is described on the attached Exhibit A.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of July, 1998.
Thomas E. Harms, Chair
ATTEST:
Michael Sandahl, Secretary
40
EXHIBIT A
(Legal Descriptions of Property Interests to Be Acquired)
Parcel One: (P.I.D. No. 27-028-24-32-0010)
Property Address: 6724 Lyndale Avenue South
Legal Description of Property and Description of Taking:
Taking in fee simple absolute.
That part of Lot 23, Block 3, Fairwood Shores, according to the plat thereof on file in the
office of the Registrar of Titles; Hennepin County, Minnesota, described as follows:
Beginning at a point on the Southerly line of said Lot 23, at a point 75.00 feet
West, measured along the South line of said Lot 23, from the southeast corner
thereof, thence East along the South line of said Lot 23, a distance of 75.00 feet to
the Southeast corner thereof; thence Northeasterly along the East line of said Lot
23, a distance of 44.00 feet; thence Northwesterly a distance of 64.40 feet to a
point distant 78.40 feet Northeasterly from the point of beginning; thence
Southwesterly a distance of 78.40 feet to the point of beginning.
• Together with all rights in and to any and all streets and alleys adjacent thereto, vacated or
to be vacated, and together with any and all appurtenant easements.
0
Parcel Two: (P.I.D. No. 27-028-24-32-0009)
Property Address: 710 Lake Shore Drive
Legal Description of Property Interests to be Acquired:
Easement in favor of Northern States Power Company burdening Parcel Two for the
benefit of Parcel One, Running North-South Over Lot 23, Granted Via Doc. #790921.
Description of Taking:
Legal Descriytion (Per Doc. #790921)
Extinguishment of an easement encumbering a 10.00 foot strip of land the center line of
which is described as follows:
Beginning at a point on the Northeasterly line of the below described property
which point is 16.50 feet Southeasterly of the most Northerly comer of said
property, thence Southerly across said property a distance of 120.00 feet more or
less, to the most Northerly corner of the exception in the below described
property, and there terminating.
Lot 23 except that part thereof described as follows: Commencing at a point on
the Southerly line of Lot 23, Block 3, Fairwood Shores, at a point 75.00 feet West,
measured along the South line of said Lot 23 from the Southeast comer thereof;
thence East along the South line of said Lot 23 a distance of 75.00 feet to the
Southeast corner thereof; thence Northeasterly along the East line of said Lot 23 a
distance of 44.00 feet; thence Northwesterly a distance of 64.40 feet to a point
distant 78.40 feet Northeasterly from the point of beginning; thence Southwesterly
a distance of 78.40 feet to the point of beginning, Block 3, Fairwood Shores,
according to the plat thereof on file or of record in the office of the Registrar of
Titles in and for said County of Hennepin, State of Minnesota.
•
Parcel Three: (P.I.D. No. 27-028-24-32-0009)
Property Address: 710 Lake Shore Drive
Property Interests to be Acquired:
Drainage easement burdening Parcel Three for the benefit of Parcel Seven and other
Property, Granted Via Doc. #373832 to Rose Holding Company.
Legal Description (6/10/98)
Lots 21 and 22, Block 3, Fairwood Shores, according to the plat thereof on file in the office of
the Registrar of Titles, Hennepin County, Minnesota.
E
0
Parcel Six: (P.I.D. No. Unassigned)
Property Address: Unassigned
Property Interests to be Acquired:
Fee simple absolute ownership of alley adjoining the northeasterly side of the project for
construction and for continued existence of an underground parking garage (subject to continued
use of alley) and temporary easement precluding use of alley for 18 month period beginning
September 28, 1998.
Legal Description (6/10/98)
That part of the full width of the alley (labeled Auto Lane on the herein described plat) lying in
Block 3, Fairwood Shores, according to the recorded plat thereof on file in the office of the
Registrar of Titles, Hennepin County, Minnesota, described as follows:
That part of said alley in Block 3 lying northeasterly of Lots 19, 20, 21, 22 and 23,
said Block 3, lying southwesterly of Lots 1, 2, 3, 4 and 5, said Block 3, lying
southeasterly of the northeasterly production of the northwest line of said Lot 19
and lying northwesterly of the northeasterly production of the southeast line of
said Lot 23.
0
Parcel Seven: (P.I.D. No. 27-028-24-32-0006)
Property Address: 6700-6718 Lyndale Avenue South
Property Interests to be Acquired:
Temporary construction easement over the southerly portions of Lots 1 through 5, Block
3, Fairwood Shores, adjoining and northerly of the alley (subject to owners continued use
of existing building except doors opening to easement area) for purposes of grading,
potential foundation shoring, anchoring, and construction access for an 18 month period
beginning September 28, 1998.
Legal Description (6/10/98)
The southwesterly 20.00 feet of Lots 1, 2, 3, 4 and 5, Block 3, Fairwood Shores, according to the
recorded plat thereof on file in the office of the Registrar of Titles, Hennepin County, Minnesota.
n
is
Parcel Eight: (P.I.D. No. 28-028-24-41-0017)
Property Address: 6639 Lake Shore Drive
Property Interests to be Acquired:
Temporary Construction Easement over Public Walk Lying Along the Northwest Side of
the Site for an 18 month period beginning September 28, 1998.
Legal Description (6/10/98)
That part of the public strip labeled "Lake View Walk" lying northwest of and adjacent to Lot
19, Block 3, Fairwood Shores, according to the plat thereof on file in the office of the Registrar
of Titles, Hennepin County, Minnesota, which lies northwest of said Lot 19, southeasterly of Lot
18, said Block 3, northeasterly of a line between the most westerly corner of said Lot 19 and the
most southerly corner of said Lot 18 and southwesterly of a line from the most northerly corner
of said Lot 19 to the most easterly of said Lot 18.
0
HOUSING AND REDEVELOPMENT AUTHORITY
• HRA Letter No. 43
Agenda July 20, 1998
Issue Statement:
Consideration of a resolution approving a Contract for Private Development between
the Housing and Redevelopment Authority (HRA) and Gramercy Park Cooperative at
Lake Shore Drive; Gramercy TIF District.
Background:
Both the HRA and City Council have approved the establishment of the Gramercy Tax
Increment Financing District. The Plan identified two phases for the District; Gramercy
Park Cooperative and a future commercial and housing development.
It would now be appropriate for the HRA to consider approving a contract with
Gramercy Park Cooperative. The contract details the responsibilities of both the HRA
and Gramercy Park Cooperative in bringing about the redevelopment of the site.
Gramercy will construct a 16 story, 218 unit senior cooperative housing building along
with an 8,000 sq. ft. space to be occupied by VFW Post 5555. The project will be built
on the current VFW site and the adjacent commercial property to the east (the Hules'
property), but will also require the use of the area beneath the adjacent alley to the
north. This subsurface area will be occupied by the underground parking structure.
• A table of contents listing the ten articles of the contract and their subdivisions appears
on pages ii-iii. A summary of the major points of the Articles follows:
• Articles I and II (p. 2-6) contain definitions and representations for the developer and
HRA.
• Article III (p. 7-12) addresses the purchase and conveyance of the properties. It is
envisioned that the developer would purchase the properties and then convey them
to the HRA by quit claim deed. The HRA would then quit claim the property to the
developer. If the developer is unable to successfully negotiate the purchase of any
of the property involved, the HRA would exercise its right of eminent domain.
Regardless of means of acquisition, the developer would be responsible for all costs
of securing title. The alley to the north of the VFW site will be temporarily closed
during construction. The developer is responsible for providing alternate access to
all affected properties. The developer will accept the property "as is" from the HRA.
The HRA will make payments to the developer based on a Limited Revenue Tax
Increment Note (Exhibit A) of $3,000,000 at 7 1/2 percent interest. Schedule A of
the note delineates the principle and interest payments. The only source of revenue
with which to pay the note is the tax increment generated by the development. If the
development does not pay taxes, the developer does not receive payment (this is a
• "pay-as-you-go" project).
• Article IV (p. 13, 14) covers building plans and the issuance of a Certificate of
Completion and Article V (p. 15) covers insurance.
• Article VI (p. 16) addresses tax increment and calls for the issuance of the note
• upon satisfactory completion of the minimum improvements and the issuance of a
Certificate of Completion.
Article VII (p. 17, 18) places restrictions on the developer's financing and Article VIII
(p.19, 20) restricts the developers ability to transfer the property.
• Article VIIII (p. 21, 22) discusses defaults and Article X (p.23, 24) contains
miscellaneous provisions.
The basis for providing the tax increment assistance is the "But For..." test. That is, but
for the availability of tax increment, the project would not proceed. Mr. Sid Inman of
Ehlers & Associates will be at the July 20 meeting to discuss his review of the project.
Recommended Motion:
Adopt the attached resolution which approves the Contract for Private Development
between the HRA and Gramercy Park Cooperative at Lake Shore Drive and the
economic assistance proposed.
Basis of Recommendation:
1. The proposed development cannot proceed without a contract and without the tax
increment assistance proposed.
2. The proposed contract is consistent with previous "pay-as-you-go" tax- increment
contracts.
3. Gramercy Park is a successful housing developer with other facilities completed
and under construction in the metropolitan area.
Alternative Recommendation:
1. Delay approval.
2. Propose modifications.
Discussion/Decision Mode:
Action on July 20, 1998 will make it possible for the development to proceed. The
public hearing on the land sale will occur at the August 17, 1998 HRA meeting.
Respectfully submitted,
Jame Prosser
Execu a Director
0 JDP:cak
HRA RESOLUTION NO.
40 RESOLUTION APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT WITH
GRAMERCY PARK COOPERATIVE OF RICHFIELD
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (the "Authority") has properly created and is administering its
Redevelopment District (the "District") pursuant to Minnesota Statutes Chapter 469 in
an effort to encourage the development and redevelopment of certain designated areas
within the City of Richfield; and
WHEREAS, among the development activities proposed to be assisted by the
Authority in the District are the development of housing facilities; and
WHEREAS, there has been presented before the Authority a form of Contract for
Private Redevelopment ("Contract") between the Authority and Gramercy Park
Cooperative at Lake Shore Drive, setting forth the parties respective responsibilities in
developing the facility; and
WHEREAS, the Authority has reviewed the contract and finds that the execution
of the same and the Authority's performance of its obligations thereunder are in the
best interest of the Authority and its residents.
NOW, THEREFORE, BE IT RESOLVED, by the Richfield Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota as follows:
1. That the proposed development within the District is not economically
feasible without the assistance to be provided.
2. That the contract, as presented to the Authority, is hereby in all respects
approved, subject to insubstantial modifications which may be
subsequently approved by the board's chair and the Authority's legal
counsel.
3. That the proper Authority officers are hereby authorized to execute the
contract on behalf of the Authority and to carry out, on behalf of the
Authority, the Authority's obligations thereunder.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of July, 1998.
Thomas E. Harms, Chair
ATTEST:
0 Michael Sandahl, Secretary
714/98 Draft
CONTRACT
FOR
PRIVATE REDEVELOPMENT
BY AND BETWEEN
0 THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
AND
GRAMERCY PARK COOPERATIVE AT LAKE SHORE DRIVE
a Minnesota Cooperative Corporation
,1998
This document was drafted by:
Kennedy & Graven, Chartered (JBD)
470 Pillsbury Center
200 South Sixth Street
Minneapolis, MN 55402
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TABLE OF CONTENTS
ARTICLE I
Definitions
Section 1.1. Definitions .................................................................................................................... 2
Section 1.2. Exhibits ....................................................................................................................... 4
Section 1.3. Rules of Interpretation ................................................................................................ 4
ARTICLE H
Representations
Section 2.1. Representations by the Redeveloper ........................................................................... 5
Section 2.2. Representations by HRA ............................................................................................ 5
ARTICLE III
Land Sale
Section 3.1A- Acquisition of Parcel A on the Redevelopment Property .................... ...................... 7
Section 3.1B. Initiation and continuation of BRA Activities ..................................... ...................... 7
Section 3.2. Conveyance of the Redevelopment Property ....................................... ....................10
Section 3.3. Time of Acquisition and Conveyance .................................................. .................... 11
Section 3.4. Title ...........................................................
............................................. 11
....................
Section 3.5. Soil Conditions ...................................................................................... .................... 11
Section 3.6. Purchase Price ....................................................................................... .................... 12
Section 3.7. Taxes and Special Assessments ............................................................. ....................12
Section 3.8. Other Costs
............................................................................................ 12
....................
Section 3.9. Property Conveyed As Is ............................................... ................... .................... 12
Section 3.10. Termination ........................................................................................... .................... 12
ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Agreement to Construct ......................................................
Section 4.2. [Blank] .................................................................................
Section 4.3. [Blank] .................................................................................
Section 4.4. Concept Plans .....................................................................
Section 4.5A. Commencement of Construction
.......................................
Section 4.6. Construction Reports ....................
.....................................
Section 4.7. Completion of Construction - Certificate of Completion .
ARTICLE V
Insurance
13
13
13
13
...........................
13
13
...........................
13
0 Section 5.1. Insurance .................................................................................................................... 15
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a
ARTICLE VI
Tax Increment
Section 6.1. Statement of Purpose ....................................
Section 6.2. Minimum Improvements ..............................
16
16
ARTICLE VII
Financing
Section 7.1. Limitations Upon Encumbrance ................................................................................17
Section 7.2. Copy of Notice of Default to Lender ......................................................................... 17
Section 7.3. Lender's Option to Cure Defaults ............................................................................. 17
Section 7.4. HRA's Option to Cure Default ..................................................................................17
Section 7.5. Subordination ............................................................................................................ 18
ARTICLE VIII
Prohibitions Against Assignment and Transfer
•
Section 8.1. Representation as to Development ............................................................................ 19
Section 8.2. [Blank] .......................................................................................................................19
Section 8.3. Prohibition Against Transfer of Property and
Assignment of Agreement .......................................................................................19
Section 8.4. Following Completion .............................................................................................. 20
Section 8.5. Approvals .................................................................................................................. 20
ARTICLE IX
Events of Default
Section 9.1. Events of Default Defined
............................................................ 21
............................
Section 9.2. Remedies on Default
...................................................................... 21
............................
Section 9.3. No Remedy Exclusive .................................................................. ............................ 22
Section 9.4. No Additional Waiver Implied by One Waiver ............................ ............................ 22
ARTICLE X
Additional Provisions
C,
Section 10.1
Section 10.2.
Section 10.3.
Section 10.4.
Section 10.5.
Section 10.6.
Section 10.7.
Section 10.8.
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Conflict of Interests; HRA Representatives Not
Individually Liable ......................
.....................
Nondiscrimination
..............................................
Provisions Not Merged With Deed
....................
Notice of Status and Conformance
.....................
Wage and Job Covenants .....................................
Redeveloper Deposit ............................................
Notices and Demands
.........................................
Identification Marker
23
23
23
23
23
24
24
24
.....................................
ii
Section 10.9. Counterparts .............................................................................................................. 24
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CONTRACT FOR
PRIVATE DEVELOPMENT
THIS AGREEMENT, made and entered into this day of July, 1998, is by and between
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, MINNESOTA, a Minnesota public body corporate and politic (the "BRA"), and
GRAMERCY PARK COOPERATIVE AT LAKE SHORE DRIVE, a Minnesota cooperative
corporation, (the "Redeveloper").
WITNESSETH:
WHEREAS, the City of Richfield and BRA have established the Richfield Redevelopment
Project Area ("Project Area") under the authority of Minnesota Statutes, Chapter 469 (the "Act"), and
have established within the Project Area the Gramercy Redevelopment Tax Increment Financing
District ("TIF District") and adopted a Tax Increment Financing Plan ("hereinafter defined as the "Tax
Increment Plan") for the TIF District to facilitate the financing of public development and
redevelopment costs in the Project Area; and
WHEREAS, the HRA deems it to be in the public interest to facilitate and encourage
redevelopment of the Project Area by a combination of public and private activity within the Project
Area and in accordance with the Tax Increment Plan adopted by the City on June 22, 1998, and BRA
. on May 18, 1998, following extensive study and preliminary work conducted by the City and HRA and
others engaged by them; and
WHEREAS, the Redeveloper has proposed a development (hereinafter defined as the
"Development") within such Project Area which the HRA believes will promote and carry out the
objectives for which redevelopment is undertaken, will be in the vital best interests of the City, will
promote the health, safety, morals, and welfare of its residents and will be in accord with the public
purposes and provisions of the applicable state and local laws and requirements under which activities
within the Project Area have been undertaken and are being assisted; and
WHEREAS, the Redeveloper is willing to purchase property from the HRA within the Project
Area such property being legally described in the attached Exhibit A (hereinafter defined as the
"Redevelopment Property") and to develop the Redevelopment Property for and in accordance with
this Agreement; and
WHEREAS, consistent with the Tax Increment Plan, the HRA is willing to provide financial
assistance in accordance with the provisions of this Agreement;
NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties
contained herein, each of them does hereby represent, covenant and agree with the others as follows:
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ARTICLE I
DEFINITIONS, EXHIBITS
RULES OF INTERPRETATION
Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears from the
context:
"Act" means the Economic Development Act, located at Minnesota Statutes, Chapter 469, as
amended.
"Agreement" means this Agreement, as the same may be from time-to-time modified,
amended, or supplemented.
"Certificate of Completion" means the certification, in the form of the certificate contained in
Exhibit B attached to and made a part of this Agreement, provided to the Redeveloper, pursuant to
Section 4.7 of this Agreement.
"City" means the City of Richfield.
"Closing" means the date on which title to the Redevelopment Property is transferred to the
• Redeveloper.
"Commencement of Construction" means excavation for the purpose of setting footings or
foundation.
"Completion of Construction" means the completion of construction of the Minimum
Improvements except for tenant finish work.
"Concept Plans" mean the plans, drawings and narrative descriptions for the Minimum
Improvements and related site work which are on file in the office of the Director of Community
Development for the City. The term also includes detailed marketing plans and occupant mix
projections.
"Construction Contract" means a contract or contracts which provides for completion of the
Minimum Improvements.
"County" means the County of Hennepin.
"Development" means the Minimum Improvements to be constructed on the Redevelopment
Property.
"Event of Default" means an action by the Redeveloper listed in Section 10.1 of this
. Agreement.
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"Minimum Improvements" means the improvements to be constructed by Redeveloper on the
Redevelopment Property and related site work all as shown on the Concept Plan.
"Minnesota Environmental Policy Act" means the statutes located at Minnesota Statutes
Sections 116D.01 et sea., as amended.
"Minnesota Environmental Rights Act" means the statutes located at Minnesota Statutes
Sections 116B.01 et sea., as amended.
"National Environmental Policy Act" means the federal law located at 42 U.S.C. Section 4311
et seq., as amended.
"Note" means the Limited Revenue Tax Increment Note to be executed and delivered in the
form set forth on Exhibit D, pursuant to Section 3.6.
"Redeveloper" means Gramercy Park Cooperative at Lake Shore Drive, a Minnesota
cooperative corporation.
"Redevelopment Property" means the real property described as such on Exhibit A of this
Agreement, and consisting of Parcel A, Parcel B (Cricket) and Parcel C (alley).
• "State" means the State of Minnesota.
"Tax Increment" means that portion of the real property taxes which is paid with respect to the
Redevelopment Property which is remitted to the Authority as Tax Increment pursuant to the Tax
Increment Plan, after reduction (if any) of fiscal disparities' contributions which are mandated by state
law to be made with respect to any parcel.
"Tax Increment Act" means the statutes located at Nfinnesota Statutes Section 469.174
through 469.179, of the Economic Development Act.
"Tax Increment Plan" means the tax increment financing plan adopted by the City in connection
with the creation of the Tax Increment District and as such may be modified and amended from time to
time.
"Tax Official" means any City or county assessor; County auditor; City, County or State board
of equalization, the commissioner of revenue of the State, or any State or federal district court, the tax
court of the State, or the State Supreme Court.
"Unavoidable Delays" means unexpected delays which are the direct result of adverse weather
conditions, shortages of materials, strikes, other labor troubles, fire or other casualty to the Muiimum
Improvements, litigation commenced by third parties which, by injunction or other judicial action,
directly results in delays, or acts of any federal, state or local governmental unit other than those
provided for under this Agreement or any other cause or force majeure beyond the control of
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3
Redeveloper which directly results in delays, provided, however, that adverse market conditions or
tenant actions affecting the marketability or profitability of the Minimum Improvements, or the inability
to secure financing of the Minimum Improvements shall not constitute Unavoidable Delays.
Section 1.2. Exhibits. The following exhibits are attached to and made a part of this
Agreement.
A. Limited Revenue Tax Increment Note ("Note");
B. Certificate of Completion;
C. Redevelopment Property Description;
Section 1.3. Rules of Interpretation. (a) This Agreement shall be interpreted in accordance
with and governed by the laws of the State of N innesota;
(b) The words "herein" and "hereof' and words of similar importance, without
reference to any particular section or subdivision refer to this Agreement as a whole rather than
any particular section or subdivision hereof,
(c) Any titles of the several parts, articles and sections of this Agreement are inserted for
convenience and reference only and shall be disregarded in construing or interpreting any of its
provisions.
•
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0 ARTICLE H
REPRESENTATIONS
Section 2.1. Representations by the Redeveloper. (a) The Redeveloper has the power to
enter into this Agreement and has duly authorized the execution, delivery, and performance of this
Agreement by proper action.
(b) If the conditions precedent to construction occur, subject to the other terms of this
Agreement, the Redeveloper has the financial capability to construct the Minimum Improvements.
(c) If the conditions precedent to construction occur, subject to the other terms of this
Agreement, the Redeveloper will construct the Minimum Improvements described in the Concept
Plans in accordance with the terms of this Agreement, the Redevelopment Plan and all local, state
and federal laws and regulations.
(d) The Redeveloper will exercise all reasonably diligent efforts to obtain, in a timely
manner, all required permits, licenses, and approvals and if all such approvals are obtained, and
subject to Unavoidable Delays and the satisfaction of all preconditions set forth in this Agreement
will meet in a timely manner, all lawful requirements of all local, state, and federal laws and
regulations which must be obtained or met before the Minimum Improvements maybe constructed.
(e) Redeveloper will comply in all material respects, with all applicable local, state and
federal environment laws and regulations, will have obtained any and all necessary environmental
reviews, licenses or clearances under, and will be in material compliance with the applicable
requirements of the National Environmental Policy Act of 1969, the Minnesota Environmental
Policy Act, and the Critical Area Act of 1973 and any other applicable environmental law or
regulation. Redeveloper has not received notice or communication from any local, state or federal
official indicating that the activities of Redeveloper may be or will be in violation of any
environmental law or regulation. Redeveloper is not aware of any facts the existence of which
would cause the Redeveloper to be in violation of any local, state or federal environmental law,
regulation or review procedure or which would give any person a valid claim under the Minnesota
Environmental Rights Act;
Section 2.2. Representations by HRA. The BRA makes the following representations as
the basis for the undertakings herein contained.
(a) The HRA has the power to enter into this Agreement and has duly authorized the
execution, delivery and performance of this Agreement by proper.
(b) The HRA shall, without expense to it, cooperate in Redeveloper's efforts to obtain
all federal, state, and regional agency land use, environmental or other regulatory approvals which
are required of Redeveloper and necessary to implement the Development.
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5
(c) The Project Area, TIF District and the Tax Increment Plan have been properly and
legally established and are currently fully operative. The TIF District was certified on
; and the first tax increment from the TIF District is expected to be remitted to
the BRA in
(d) The Redeveloper has been given true and accurate copies of the Tax Increment Plan
and all amendments to it. No challenge to the Tax Increment Plan or the TIF District is currently
pending or anticipated.
(e) The HRA has no knowledge that any tax increment projections or similar material
furnished to the Redeveloper is untrue, but further makes no representation concerning its accuracy.
(f) The HRA will provide Redeveloper with all reports, investigations and studies in
the HRA's possession which have as their subject the Redevelopment Property.
0
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6
• ARTICLE III
Acquisition and Conveyance of Property
Section 3.1A. Acquisition of Parcel A on the Redevelopment Property. The Redeveloper
represents that it will, not later than 30 days following the date of this Agreement obtain title to or
options to acquire title to Parcel A on the Redevelopment Property. Subject to the terms of this
Agreement, the HRA agrees that it will, subsequent to the Redeveloper's acquisition of title to
Parcel A on the Redevelopment Property, acquire said Parcel from the Redeveloper. It is intended
that the HRA will acquire title to Parcel A at the same time it obtains title to Parcels B and C. The
conveyance from the Redeveloper to the HRA shall be by a standard quit claim deed. Immediately
after the HRA's acquisition of the said Parcel, the HRA shall, by quit claim deed, reconvey such
property to the Redeveloper for development in accordance with the terms of this Agreement. The
HRA may also be utilizing its authority to remove easements including the certain easement to
install drainage pipes covering Parcel A as further provided in Section 3.4(a); and to obtain
temporary construction easements as may be necessary to facilitate construction of the Minimum
Improvements. The cost to the HRA shall be reimbursed as provided hereinafter.
Section 3.1B. - Initiation and continuation of HRA Activities. (a) Promptly upon the
execution of this Agreement by the parties and upon the mutual agreement of the parties concerning
the matters to be included, the HRA shall commence eminent domain action for the purpose of
• acquiring title to the Parcels and interests, the HRA may, if it deems appropriate, seek to acquire
title to and possession of the Parcels and interests by the earliest date permitted in accordance with
Minnesota Statutes, § 117.042.
(b) During the pendency of such actions, the Redeveloper shall be required to promptly
pay all expenses incurred by the HRA in connection with the prosecution thereof, such expenses
include legal, survey, title, appraisal, relocation, process service, court costs and similar expenses.
The HRA shall, not more often than the monthly during the pendency of the action, furnish the
Redeveloper with a written itemized statement of all such expenditures. Redeveloper shall have
two weeks from the receipt of such statement to pay the same.
(c) Not later than five days prior to any date on which the HRA is required to deposit
any amount into court in order to obtain title and possession to portions of the Property or to make
relocation benefit payments to persons entitled to such payments, Redeveloper shall deliver to the
HRA funds payable to the HRA in the amount of any such deposit or payment. The HRA shall
then have the right, and subject to the terms and conditions hereof, the obligation to use such funds
to make such deposit or such payments. The HRA shall have no obligation to repay such funds
received deposited or paid pursuant to this Agreement should the redevelopment covered by this
Agreement not be completed for any reason.
(d) The obligation of the HRA to make the deposit and obtain title to and possession of
any of the parcels shall, unless waived in writing by the HRA, be specifically subject to the
following:
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7
1. Redeveloper is not in default of any provisions of this Agreement and all
amounts due and payable under this Agreement have been paid.
2. Redeveloper has reviewed the condition of title as such is to be acquired by
the HRA and notified the HRA in writing that such condition of title is
satisfactory.
3. The Redeveloper has provided the HRA with an undertaking in the form of
a written agreement, and with security (which, if other forms of security are
not reasonably acceptable to the-BRA, may include the right of the HRA to
take an assignment of leases) all reasonably acceptable to the HRA which
will assure payment by the Redeveloper of:.
(i) any condemnation award in excess of the previously deposited sums;
(ii) any relocation benefits which are not yet paid;
Such undertaking and security is to remain in effect according to its terms,
and in any event, until suitable and adequate substitute security is agreed to
by the parties.
4. The Redeveloper has furnished the HRA with written notice, reasonably
acceptable to the HRA, indicating that, based upon Redeveloper's own
investigation it is satisfied in all respects with the nature and condition of the
parcels and interests to be acquired by the BRA, and accepts the same AS IS
and WHERE IS.
5. The HRA is satisfied that the Redeveloper has obtained, or will be
obtaining, fee simple title to any portions of the Redevelopment Property
which are not the subject of the condemnation; and that Redeveloper has
made reasonable efforts to acquire Parcels B and C and to extinguish the
certain easements including the easement to install drainage pipes.
6. Redeveloper has furnished the BRA with written evidence reasonably
acceptable to the BRA that it has funds, whether in the nature of Equity or
Financial Commitment or otherwise which are sufficient for construction of
the Minimum Improvements.
7. Redeveloper has supplied the BRA with written evidence reasonably
acceptable to the BRA that it has presale agreements for at least 80% of the
residential units.
8. Redeveloper has supplied the BRA with a signed written statement,
reasonably satisfactory to the BRA, to the effect that, to the best of
Redeveloper's knowledge, upon Closing, there will be no remaining matters
which would affect the prompt commencement of construction of the
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Minimum Improvements - and the continuation of construction to
completion. The statement must also acknowledge that the Redeveloper
understands that the HRA is relying on the statement as a inducement to its
activities hereunder.
9. Redeveloper has obtained all permissions and approvals required by the city
and other governmental authorities relating to such matters as, without
limitation, disruption or closure of rights of way, encroachment above streets
and allesy for construction activities, and use of public lands for storage of
construction equipment and materials. It is understood that such
permissions may be conditioned upon such terms as the approving
authorities may in their discretion deem advisable.
10. Redeveloper has entered into indemnity and held harmless agreements with
the City and HRA protecting those parties from damage or third parry claims
relating to construction activities; and from claims relating to use of the
[North Alley] following its reopening.
11. The HRA has reviewed and approved the Concept Plan.
12. The City and Redeveloper have reached written agreement regarding the
location and nature and cost of any public improvements to be located on the
Redevelopment Property; and the City has reviewed and approved the plans
49 for the reestablished [North Alley] including all matters relating to the
supporting structural design and maintenance and repair issues..
13. The Redevelopment Property has been rezoned to a classification which
allows the proposed activities.
The HRA may, in its sole judgment, but only with consent of the Redeveloper, commence and
continue its activities under this section even though some or all of the conditions stated above have
not been satisfied, or waived. In such event, the HRA will notify the Redeveloper of its election to
proceed and shall also notify the Redeveloper of the dates by which some conditions must be
satisfied. If the conditions have not been satisfied or waived by such extended date, the HRA shall
have the right to terminate time and the Redeveloper shall be responsible for any costs, expenses or
liabilities incurred by the HRA as of, and/or as a result of such termination.
(e) Should the HRA terminate this Agreement for a failure of Redeveloper to satisfy
any of the conditions in paragraph (d) after the HRA has acquired title to and possession of either
Parcels B or C or both, the HRA shall have the unrestricted right to utilize all or part of the same in
any manner which it, in its sole discretion deems appropriate, including, without limitation, the sale
of all or part of the same to others, all on terms and for amounts which the HRA in its exclusive
judgment deems appropriate.
In the event that the HRA elects to sell all or part of such property, the HRA agrees to
reimburse the Redeveloper from, and only from the sale proceeds (if any), amounts expended by the
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. Redeveloper in connection with acquisition of the Parcels B and C and paid to the HRA pursuant to
section 3.1B after first deducting from the sale price:
1. Amounts still owing the HRA under section 3.B and the amount of any remaining
obligations under section 11B(d)(3).
2. All expenditures incurred by the HRA in connection with such subsequent
transaction which were intended to be paid through the sale price.
The Redeveloper acknowledges that the HRA's obligation hereunder shall be enforceable
against no other source then the sale proceeds, if any, and does not constitute alien or encumbrance
on the property or any other HRA asset. This provision places no fiduciary obligation on the HRA
to act in any manner which would preserve, protect, secure or enhance the property or the amount
of reimbursement which the Redeveloper might receive. Nothing in this subparagraph (e) shall be
deemed to preclude a sale by the HRA to the Redeveloper; and the application of the sale price to
reduce the amount due the HRA under this subparagraph.
(f) On the date of Closing, and as a further precondition to the HRA's obligations to
deliver title, Redeveloper shall provide the HRA with a lien, in recordable form and recordable
against the Redevelopment Property. The lien shall be in a form acceptable to the HRA and in an
amount deemed by the HRA in its reasonable judgment to be sufficient to cover each of the matters
described in Section 3.1B(d)(3) above. _ The HRA agrees that it will, from time to time, hear and
consider requests from the Redeveloper to release or modify the lien, or to subordinate the same,
and will do so if in its reasonable judgment such action will not impair the adequacy of the HRA's
security. The HRA may condition the approval of any such requests upon _ the Redeveloper
providing substitute security acceptable to the HRA. Unless the BRA specifically determines
otherwise, the lien provided for in this paragraph is an additional form of security to the other forms
of security interest provided for in 3.1B(d)(3) above.
(g) Redeveloper Liability. Notwithstanding anything herein to the contrary, in the event
the Redeveloper shall fail or refuse to perform its obligations under paragraphs (b) and (c) above, or
fail to satisfy the conditions set forth in paragraph (d) above, then the HRA,upon written notice
thereof from Redeveloper, may immediately discontinue its acquisition activities, and thereafter, the
Redeveloper's sole obligation shall be: i) to reimburse the HRA for the costs and expenses incurred
by the HRA in connection with its acquisition activities; ii) to indemnify and save harmless the
HRA and the City and their officers, agents and employees and to defend the same from any claim
or cause arising out of or occasioned by the discontinuance of such acquisition activities and the
HRA's sole remedy shall be to obtain such reimbursement and indemnity from the Redeveloper.
(h) Voluntary Termination. In the event that i) the costs and expenses payable by the
Redeveloper to the HRA for the acquisition of Parcel B (Hules) and relocation expenditures
resulting from such acquisition shall exceed $177,500, or; ii) the Redeveloper shall fail to obtain
FHA approval of financing for the development by October 20, 1998, then in either such event,
either party may terminate this Agreement by furnishing the other party with written notice of such
termination. Upon such termination, each party shall be relieved from any further obligation
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hereunder except that the Redeveloper shall be obligated to reimburse the HRA for any amounts
which it was committed or obligated as a result of activities prior to such termination.
Section 3.2. Conveyance of the Redevelopment Property. The HRA shall reconvey title to
and possession of the Parcel A Redevelopment Property and convey title to and possession of
Parcels B and C to the Redeveloper under a quit claim deed. The conveyance of and the
Redeveloper's use of the Redevelopment Property shall be subject to all of the conditions,
covenants, restrictions and limitations imposed by this Agreement. The conveyance of title to and
the Redeveloper's use of the Redevelopment Property shall also be subject to building and zoning
laws and ordinances and all other applicable local, state and federal laws and regulations.
Section 3.3. Time of Acquisition and Convey. (a) Closing on the simultaneous sale
and repurchase and purchase transactions contemplated herein shall occur not later than 10 days
following the date on which the HRA has acquired title to Parcels B and C provided that the
Redeveloper is not in default of any obligation under this agreement and that all monies due the
HRA hereunder have been paid, and provided. Further that all other conditions, events or actions
which under this Agreement must occur prior to Closing have either occurred or been waived in
writing by the parry in whose favor the requirement runs;
The Redeveloper shall take possession of the Property the day of execution and delivery of the deed
by the HRA. The HRA and the Redeveloper acknowledge, that unless so required by others, the
deeds which are contemplated in this transaction need not be recorded.
-
• (b) Unless otherwise mutually agreed by the HRA and the Redeveloper, the execution
and delivery of all deeds shall be made at the principal office of the HRA.
Section 3.4. Title. (a) Prior to and as a condition to the HRA's obligation to acquire Parcel
A, the Redeveloper shall obtain and furnish to the HRA a commitment for the issuance of a policy
of title insurance. The HRA shall have twenty (20) days from the date of its receipt of such
commitment to review the state of title and to provide the Redeveloper with a list of written
objections to such title. No objection may be made by the HRA to any defect or encumbrance on
the title unless and to the extent that such defect or encumbrance would, if uncured, have the effect
of precluding Redeveloper's construction of the Minimum Improvements. Upon receipt of the
HRA's list of written objections, the Redeveloper shall proceed in good faith and with all due
diligence to attempt to cure the objections made by the HRA. Within ten (10) days after the date
that all such objections have been cured, to the reasonably satisfaction of the HRA, the HRA shall
proceed with its acquisition and reconveyance of the Redevelopment Property. The HRA shall
have no obligation to take any action to clear defects in the title to the Redevelopment Property. If
requested to do so by Redeveloper, the HRA agrees to utilize its best efforts to assist the
Redeveloper in the removal of any storm water easements currently existing on Parcel A, provided
however that the HRA shall not be obligated thereby to incur any cost or expense.
(b) The HRA shall take no actions to encumber title to the Redevelopment Property
between the moment the HRA acquires to the moment on which the Authority's Deed is delivered
to the Redeveloper, it being understood that such conveyances will occur simultaneously.
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Section 3.5. Soil Conditions. The Redeveloper acknowledges that the HRA makes no
representations or warranties as to the condition of the soils on the Redevelopment Property or its
fitness for construction of the Minimum Improvements or any other purpose for which the
Redeveloper may make use of such property. The Redeveloper further agrees that it will
indemnify, defend, and hold harmless the HRA, its governing body members, officers, and
employees, from any third parry claims or actions arising out of the presence, if any, of hazardous
wastes or pollutants on the Redevelopment Property; but only to the extent that such claims or
actions are based upon the HRA's ownership of the Redevelopment Property required herein and
for no other reason.
Section 3.6. Purchase Price. (a) The HRA shall pay the Redeveloper as purchase price for
Parcel A the aggregate principal amount contained in the Note. Payment of the Purchase Price will
be made entirely and exclusively in accordance with the terms of said Note. The Note is to be
executed by the HRA and delivered to Redeveloper at Closing.
(b) The purchase price to be paid by the Redeveloper for the reconveyance of the Parcel
A and conveyance of Parcels B and C from the HRA shall be $1.00.
Section 3.7. Taxes and Special Assessments. Redeveloper shall pay all taxes and
installments of special assessments due and payable in years prior to the year of Closing.
Redeveloper shall pay all installments of taxes and special assessments due and payable in the year
of Closing. Installments of special assessments due and payable in future years shall be
• responsibility of Redeveloper.
Section 3.8. Other Costs. No cost, fee or other payment relating to any real estate
transaction of any nature shall be payable by the HRA to any person or entity; and except as
otherwise set forth in this Agreement, the HRA's entire obligation in connection with the purchase
and sale of the Redevelopment Property shall be payment of the purchase price and reconveyance
of the Redevelopment Property as provided in this Agreement.
Section 3.9. Property Conveyed As Is. Redeveloper acknowledges that the HRA shall have
no obligation to perform any site work in connection with the proposed transaction or otherwise.
The HRA's only obligation hereunder is to convey the Redevelopment Property to the Redeveloper
in the condition in which it was obtained by the HRA. All site work, including, without limitation,
grading, soil preparation and demolition of all structures and improvements shall be done by the
Redeveloper at Redeveloper's cost.
Section 3.10. Termination. In the event that Closing has not occurred by February 15,
1999, either party may give the other party written notice of its intention to terminate this
Agreement. If the other party does not proceed to Closing within 30 days following the giving of
such notice this Agreement may be declared null and void by either party giving written notice of
such declaration to the other party and thereupon, neither party shall have any obligation or liability
to the other hereunder.
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•
ARTICLE IV
CONSTRUCTION OF MINIMUM IMPROVEMENTS
Section 4.1. Agreement to Construct. Subject to the acquisition of the Redevelopment
Property, the Redeveloper agrees that it will construct the Minimum Improvements substantially in
accordance with the approved Concept Plans; the construction and all construction activities shall
be conducted in strict conformity with the ordinances, codes and regulations of the City and other
governmental units having jurisdiction over such activities.
Section 4.2. [blank].
Section 4.3. [blank].
Section 4.4. Concept Plans. The HRA hereby approves the Concept Plans which have
been submitted by the Redeveloper.
If the Redeveloper desires to make any material change in the Concept Plans, the
Redeveloper shall submit the proposed change to the HRA for its approval. If the Concept Plans,
as modified by the proposed change, conform to the requirements of this Section with respect to
such previously approved Concept Plans, the HRA shall approve the proposed change and notify
the Redeveloper in writing of its approval. Such change in the Concept Plans shall, in any event, be
deemed approved by the HRA unless rejected, in whole or in part, by written notice by the HRA to
the Redeveloper, setting forth in detail the reasons therefor within twenty (20) days after receipt of
the notice of such change.
Final construction plans and specifications shall be reviewed by the City Building Official
in connection with issuance of building permits. No building permit may be issued if the final
construction plans and specifications materially depart from the approved Concept Plans.
Section 4.5A. Commencement of Construction. Subject to Unavoidable Delays, the
Commencement of Construction for the Minimum Improvements must occur no later than 90 days
following the Closing.
Section 4.6. Construction Reports. At the request of the HRA, the Redeveloper will
provide the HRA with copies of the portions of any construction reports prepared by Redeveloper's
architect and which show the status of construction.
Section 4.7. Completion of Construction - Certificate of Completion. Once commenced,
construction of the Minimum Improvements for any phase shall be diligently prosecuted to
completion. Promptly after notification by the Redeveloper of completion of the Minimum
• Improvements, the HRA shall inspect the construction to determine whether such Minimum
Improvements are completed substantially in accordance with the terms of this Agreement. If the
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HRA is satisfied, it will promptly furnish the Redeveloper with a Certificate of Completion. Such
certification by the HRA shall, except as further provided in this Section 4.7, be a conclusive
determination of satisfaction and termination of the agreements and covenants in this Agreement,
with respect to the obligations of the Redeveloper to construct the Minimum Improvements.
The certification provided for in this section shall be in recordable form. If the HRA shall
refuse or fail to provide the Redeveloper a certification in accordance with the provisions of this
Section 4.7, the HRA shall, provide the Redeveloper with a written statement, indicating in
adequate detail in what respects the Redeveloper has failed to complete the Minimum
Improvements in accordance with the provisions of this Agreement, or is otherwise in default, and
what measures or acts it will be necessary, in the reasonable opinion of the HRA, for the
Redeveloper to take or perform in order to obtain such certification. The HRA may not impose as a
condition for issuance of the certificate, any requirement which has previously been deemed
satisfied either by actual approval or the passage of time.
If the HRA fails to act on the Certificate of Completion within 60 days following the date it
is notified of completion of construction of a phase, all objections shall be deemed waived and the
certificate shall issue for such phase.
0
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ARTICLE V
INSURANCE
Section 5.1. Insurance. Prior to Closing,the Redeveloper shall provide evidence of
insurance, covering property, casualty, workers compensation, fire, indemnity, general liability,
employer's liability and such other coverage and in such amounts as the HRA shall reasonably
require.
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0 ARTICLE VI
TAX INCREMENT
Section 6.1. Statement of Purpose. The parties acknowledge that the development which is
proposed by the Redeveloper would not be feasible absent the assistance which is provided the
Redeveloper in this Article VI.
Section 6.2. Minimum Improvements. Upon the issuance of a Certificate of Completion
for the Minimum Improvements, but only if Redeveloper has not committed an Event of Default
under this Agreement for which cure has not occurred, the HRA shall become obligated to make
payments to the Redeveloper under and in accordance with the terms of the Note. The HRA's
obligation under this Agreement to make payments to the Redeveloper is entirely limited to the
terms of the Note.
1?1
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. ARTICLE VII
FINANCING
Section 7.1. Limitations Upon Encumbrance. Prior to the issuance of a Certificate of
Completion, neither the Redeveloper nor any successor in interest to the Redevelopment Property
or any part thereof shall engage in any financing or any other transaction creating any mortgage or
other encumbrance or lien upon the Redevelopment Property or any part thereof, whether by
express agreement or operation of law, or suffer any encumbrance or lien to be made on or attached
to the Redevelopment Property or any part thereof, except only for the purpose of obtaining funds
to the extent necessary for purchasing or redeveloping the Redevelopment Property or funding
construction of the Minimum Improvements.
Section 7.2. Copy of Notice of Default to Lender. Prior to the issuance of a Certificate of
Completion, whenever the HRA shall deliver any notice or demand to the Redeveloper with respect
to any breach or default by the Redeveloper in its obligations under this Agreement, the HRA shall
at the same time forward a copy of such notice or demand to each holder ("Holder") known to the
HRA of any mortgage or other financing agreement authorized by this Agreement by sending such
notice to last known address of the Holder as shown in the records of the HRA.
Section 7.3. Lender's Option to Cure Defaults. After any Event of Default by the
Redeveloper referred to in Section 10.1 hereof, each Holder shall (insofar as the rights of the HRA
are concerned) have the right for a period of ninety (90) days, at the Holder's option, to cure or
remedy such Event of Default to the extent that it relates to the part of the Redevelopment Property
covered by its financing and to add the cost thereof to the debt and the lien of its financing,
provided, that if the breach or event of default is with respect to construction of the Minimum
Improvements, nothing contained in this Section or any other section of this Agreement shall be
deemed to permit or authorize such Holder, either before or after foreclosure or action in lieu
thereof, to undertake or continue the construction or completion of the Minimum Improvements
(beyond the extent necessary to conserve or protect such Improvements or construction already
made) without first having expressly assumed the Redeveloper's obligations described in Section
4.5 hereof by written agreement reasonably satisfactory to the HRA to complete the Minimum
Improvements or the part thereof to which the lien or title of such holder relates, provided further,
however, that the HRA will not unreasonably withhold its consent to any changes in the Minimum
Improvements which are requested by the Holder if the requested changes do not alter the basic
design of the Minimum Improvements. (It being understood that such consent shall in no way act
to bind or influence the power of the City, in the exercise of its governmental authority not to
approve any proposed changes or alterations to the Minimum Improvements. Any such Holder
who shall perform the Redeveloper's obligations under Section 4.5 hereof, relating to the
Redevelopment Property or applicable part thereof, shall be entitled, upon written request made to
the HRA, to a certification by the HRA to such effect in the manner provided in Section 4.7 of this
Agreement.
Section 7.4. HRA's Option to Cure Default. Prior to the issuance of a Certificate of
Completion, if the Redeveloper is in default under any financing authorized pursuant to Article VIII
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of this Agreement, the Holder, prior to exercising any of its remedies, shall notify the HRA in
writing by sending it a copy of any notice of default sent to the Redeveloper. If, within thirty (30)
days after receipt of said notice, the HRA cures the default, then the Holder shall pursue none of its
remedies under the financing based upon the said default of the Redeveloper.
Section 7.5 Subordination. In order to facilitate the obtaining of financing for the
construction of the Minimum Improvements by the Redeveloper, the HRA agrees to modify and to
subordinate its right under this Agreement to the mortgage or other financing agreement held by the
financial institution providing such funds, provided, however, that nothing in this Section 7.5 shall
be deemed to require the HRA to agree to any modification or subordination of its rights which in
its judgment would be contrary to its best interests, or to the prompt and timely construction of the
Minimum Improvements; or which would fail to obligate any Holder to the provisions of Section
7.3.
0
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ARTICLE VIII
PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER
Section 8.1. Representation as to Development. The Redeveloper further recognizes that,
in view of (a) the importance of the development of the Redevelopment Property to the general
welfare of the community; and (b) the substantial financing and other public aids that have been
made available by the City and the HRA, for the purpose of making such development possible;
that the qualifications and identity of the Redeveloper are of particular concern to the community
and the HRA. Any change as hereunder described with respect to the identity of the Redeveloper or
the purchase of Redeveloper's interest by any other party or parties is for practical purposes a
transfer or disposition of the property then owned by the Redeveloper, the Redeveloper further
recognizes that it is because,of such qualifications and identity that the HRA is entering into this
Agreement with the Redeveloper and, in so doing, is further willing to accept and rely on the
obligations of the Redeveloper for the faithful performance of all undertakings and covenants
hereby then to be performed.
Section 8.2. [Blank].
Section 8.3. Prohibition Against Transfer of Property and Assignment of Agreement. For
the foregoing reasons, the Redeveloper represents and agrees that prior to the issuance of a
Certificate of Completion for that Phase:
(a) Except only by way of security for, and only for, the purpose of obtaining financing of
the nature described in Section 7.1, the Redeveloper (except as so authorized) has not made or
created, and that it will not make or create, or suffer to be made or created, any total or partial sale,
assignment, conveyance, or any trust or power, or transfer in any other mode or form of or with
respect to this Agreement or the Redevelopment Property or any part thereof or any interest therein,
or any contract or agreement to do any of the same, without the prior written approval of the BRA.
(b) The HRA shall be entitled to require, except as otherwise provided in the Agreement, as
conditions to any such action described in paragraph (a) above that: (i) any proposed transferee
shall have the qualifications and financial responsibility, as reasonably determined by the HRA,
necessary and adequate to fulfill the obligations undertaken in this Agreement by the Redeveloper
(or, in the event the transfer is of or relates to part of the Redevelopment Property, such obligations
to the extent that they relate to such part); (ii) any proposed transferee, by instrument in writing
satisfactory to the HRA and in form recordable among the land records, shall for itself and its
successors and assigns, and expressly for the benefit of the HRA, have expressly assumed all of the
obligations of the Redeveloper under this Agreement and agreed to be subject to the terms of the
Redevelopment Plan (or, in the event the transfer is of or relates to part of the Redevelopment
Property, such obligations, conditions, and restrictions to the extent that they relate to such part);
provided, that the fact that any transferee of, or any other successor in interest whatsoever the
reason, shall have assumed such obligations or agreed, shall not (unless and only to the extent
otherwise specifically provided in this Agreement or agreed to in writing by the HRA) relieve or
except such transferee or successor of or from such obligations, conditions, or restrictions, or
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deprive or limit the HRA or with respect to any rights or remedies or controls with respect to the
Redevelopment Property or the construction of the Minimum Improvements; it being the intent of
this, together with other provisions of this Agreement, that (to the fullest extent permitted by law
and equity and excepting only in the manner and to the extent specifically provided otherwise in
this Agreement) no transfer of, or change with respect to, ownership in the Redevelopment Property
or any part thereof, of any interest therein, however consummated or occurring, and whether
voluntary or involuntary, shall operate, legally or practically, to deprive or limit the HRA of or with
respect to any rights or remedies or controls provided in or resulting from this Agreement with
respect to the Redevelopment Property and the construction of the Minimum Improvements that the
HRA would have had, had there been no such transfer or change; (iii) there shall be submitted to
the HRA for review all instruments and other legal documents involved in effecting transfer, and if
approved by the HRA its approval shall be indicated to the Redeveloper in writing. The HRA shall
not unreasonably delay the taking of any action required of it under this paragraph.
(c) [Blank]
(d) In the absence of specific written agreement by the HRA to the contrary, no such
transfer or approval by the HRA thereof shall be deemed to relieve the Redeveloper, or any other
party bound in any way by this Agreement or otherwise with respect to the construction of the
Minimum Improvements, or from any of its obligations with respect thereto. The HRA may,
however, in its reasonable discretion exercised in accordance with the standards and requirements
of Section 8.3(b) relieve Redeveloper if such transferee or assignee is acceptable to the HRA.
Section 8.4. Following Completion. Upon the issuance of the Certificate of Completion,
the provisions of Sections 8.1, 8.3 and 8.5 shall be deemed to have no further force and effect; and
the Redeveloper may transfer the Redevelopment Property and assign its interest under this
Agreement at any time upon written notice to the HRA.
Section 8.5. Approvals. Any approval required to be given by the HRA under this Article
VIII of this Agreement may be denied only in the event that the HRA reasonably determines that
the performance of the obligations of Redeveloper under this Agreement will be materially
impaired by the action for which approval is sought. At the HRA's request, the Redeveloper shall
provide to the HRA's attorney for privileged review on behalf of the HRA financial information as
to any proposed general partners, or controlling stockholders of proposed assignees or transferees,
and financial information as to any such partnership or corporation. Failure to provide such
information shall be an adequate basis for the denial of any requested approval; however, it shall
not otherwise be construed as a default under this Agreement.
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0 ARTICLE IX
EVENTS OF DEFAULT
Section 9.1. Events of Default Defined. The following shall, after the Redeveloper has
received notice of the same and has failed to cure in accordance with Section 9.2, be "Events of
Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in
this Agreement (unless the context otherwise provides), any one or more of the following events:
(a) Failure by the Redeveloper to pay when due any payments required to be paid under
Article III of this Agreement.
(b) Subject to Unavoidable Delay, failure by the Redeveloper to observe and substantially
perform any material covenant, condition, obligation, or agreement on its part to be observed or
performed hereunder.
(c) If the Redeveloper is in default under any mortgage and fails to cure any such default
within thirty (30) days after written demand from the HRA to do so.
(d) If the real estate taxes are not paid when due, subject to Redeveloper's right to contest
same in accordance with applicable law.
Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section
9.1 of this Agreement occurs, the HRA may, in addition to any other remedies or -rights given the
HRA under this Agreement, but only after at least sixty (60) days notice to the Redeveloper and its
failure to cure (unless a different cure period is provided with respect to specific defaults under this
Agreement) or such longer cure period if reasonably required and the actions to cure have been
commenced within such 60-day period, find the Redeveloper in default (Default) and take any one
or more of the following actions:
(a) Suspend its performance under the Agreement until it receives assurances from the
Redeveloper or mortgagee reasonably deemed adequate by the HRA, that the Redeveloper will cure
the default and continue performance under this Agreement.
(b) If Closing has not yet occurred, cancel pursuant to Minnesota Statutes Section 559.21,
and rescind this Agreement, in which case the 60-day cure period shall commence with notice of
cancellation.
(c) Withhold the Certificate of Completion if the Event of Default relates to the failure of
the Redeveloper to complete the Minimum Improvements as provided in this Agreement.
(d) Subject to the limitations stated in Article III take whatever action at law or in equity
41 may appear necessary or desirable to the HRA to collect any payments due under this Agreement,
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or to enforce performance and observance of any obligation, agreement or covenant of the
Redeveloper under this Agreement.
Provided, however, that any exercise by the HRA, its successors or assigns, of its right or
remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid or
limit in any way (a) the lien of any mortgage authorized by this Agreement and (b) any rights or
interests provided in this Agreement for the protection of the Holder of such mortgages. Provided
further, however, that should any Holder succeed by foreclosure of the mortgage or deed in lieu
thereof, to Redeveloper's interest in the Redevelopment Property, it shall, notwithstanding the
foregoing provision, be obligated and, shall agree in writing to perform all of the obligations of the
Redeveloper, set forth in this Agreement. Said Holder shall have no obligations pursuant to this
Agreement other than as specifically set forth in the foregoing sentence.
Section 9.3. No Remedy Exclusive. Except as provided in Article III, no remedy herein
conferred upon or reserved to the HRA is intended to be exclusive of any other available remedy or
remedies, but each and every such remedy shall be cumulative and shall be in addition to every
other remedy given under this Agreement or now or hereafter existing at law or in equity or by
statute. No delay or omission to exercise any right or power accruing upon any default shall impair
any such right or power or shall be construed to be a waiver thereof, but any such right and power
may be exercised from time to time and as often as may be deemed expedient. In order to entitle
the HRA or the Redeveloper to exercise any remedy reserved to it, it shall not be necessary to give
notice, other than such notice as may be required in this Article X or by applicable law.
Section 9.4. No Additional Waiver Implied by One Waiver. In the event any obligation
contained in this Agreement should be breached by either party and thereafter waived by the other
party, such waiver shall be limited to the particular breach so waived and shall. not be deemed to
waive any other concurrent, previous or subsequent breach hereunder.
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0 ARTICLE X
ADDITIONAL PROVISIONS
Section 10.1. Conflict of Interests, HRA Representatives Not Individually L. No
member, official, or employee of the HRA shall have any personal interest, direct or indirect, in the
Agreement, nor shall any such member, official or employee participate in any decision relating to
the Agreement which affects his personal interests or the interests of any corporation, partnership,
or association in which he is, directly or indirectly, interested. No member, official, or employee of
the HRA shall be personally liable to the Redeveloper, or any successor in interest, in the event of
any default or breach by the HRA or for any amount which may become due to the Redeveloper or
successor or on any obligations under the terms of the Agreement.
Section 10.2. Nondiscrimination. The provisions of Minnesota Statutes Section 181.59,
which relate to civil rights and nondiscrimination, shall be considered a part of this Agreement as
though fully set forth herein.
Section 10.3. Provisions Not Merged With Deed. None of the provisions of this
Agreement are intended to be or shall be merged by reason of any deed transferring any interest in
any part of the Property and any such deed shall not be deemed to affect or impair the provisions of
this Agreement. Unless otherwise indicated in this Agreement, the provisions of this Agreement
shall be binding upon and inure to be benefit of the successors and assigns of the parties hereto.
Section 10.4. Notice of Status and Conformance. The HRA agrees that from time to time,
upon not less than ten (10) days' prior written notice by Redeveloper, to execute, acknowledge and
deliver, without charge, to Redeveloper or to any person designated by Redeveloper, a statement in
writing certifying, to the extent true, that this Agreement is unmodified, the principal amount of any
obligation herein created then unpaid, that the HRA has not received any notice of default, that to
the knowledge of the HRA no event of default exists hereunder (or if any such event of default does
exist, specifying the same and stating that the same has been cured, if such be the case), that the
HRA to its knowledge, has no claims against the Redeveloper hereunder, and any other information
reasonably requested by the Redeveloper. It is the intention of this Section 10.4 to provide a
mechanism for obtaining estoppel certificates which may be requested by from time to time by
Redeveloper or Redeveloper's mortgagee.
Section 10.5. Wage and Job Covenants. (a) By no later than two years after the first date
on which the Redeveloper receives any payment under a note issued to Redeveloper pursuant to
Sections 6.2 hereof, the Redeveloper shall create on the Redevelopment Property at least _ new
jobs and the average hourly wage rates for such _ employees of Redeveloper located on the
Redevelopment Property shall be no less than $ per hour. The Redeveloper shall submit to the
HRA a written report by April 1 of each year after completion of the Minimum Improvements
describing employment and wages in sufficient detail to enable the HRA to determined compliance
with this Section.
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(b) Unless the Redeveloper complies with the wage and job covenants of this Section at
least once during the two year period following the first payment to it of tax increment, the
Redeveloper shall repay the HRA, upon written demand from the HRA, any payments made to the
Redeveloper under the Note. Nothing in this Section shall be construed to limit the HRA's other
remedies hereunder.
Section 10.6. Redeveloper Deposit. The parties acknowledge that the Redeveloper has
previously deposited $10,000 with the HRA. The purpose of the deposit is to reimburse the HRA
for costs incurred by it in connection with the preparation of this Agreement and the establishment
of the Gramercy Tax Increment District. Any portions of the deposit which are not needed for that
purpose shall be returned to the Redeveloper within 15 days following the Closing; or the
termination of this Agreement for failure to close. It is understood that the deposited amount is not
a limitation on the Redeveloper's obligation to reimburse for such costs; and the Redeveloper shall
pay the HRA for any such costs in excess of the deposit within 30 days of written request to do so.
Section 10.7. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand, or other communication under the Agreement by either parry to the
other shall be sufficiently given or delivered it if is dispatched by registered or certified mail,
postage prepaid, return receipt requested, or delivered personally:
As to the HRA: Housing and Redevelopment Authority
6700 Portland Avenue South
Richfield, Minnesota 55423
16 Attention: Executive Director
As to the Redeveloper: Gramercy Park Cooperative at Lake Shore Drive
or at such other address with respect to either such party as that party may, from time to time,
designate in writing and forward to the other.
Section 10.8. Identification Marker. The Redeveloper, the HRA will work with the city, as
part of the PUD Plan approval process, in the formulation of plans for an Identification Marker to
be located on or near the Redevelopment Property and near the intersection of Lyndale Avenue and
Lake Shore Drive. The plans will address such matters as design, message, location, cost, and
maintenance.
Section 10.9. Counterparts. This Agreement may be simultaneously executed in any
number of counterparts, all of which shall constitute one and the same instrument.
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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
RICHFIELD, MINNESOTA
By: _
Its:
By: _
Its:
GRAMERCY PARK COOPERATIVE
AT LAKE SHORE DRIVE
•
By:
STATE OF MINNESOTA )
) SS
COUNTY OF )
The foregoing instrument was acknowledged before me this day of , 1998,
by and , the Chairperson and Executive Director of
The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota.
Its:
Notary Public
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0 [Developer Acknowledgement]
0
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•
EXHIBIT A
$3,000,000
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 Park Cooperative at Lake Shore Drive (the "Owner"), to the extent and in the
manner hereinafter provided, the original principal amount of this Note, being $3,000,000 (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 a semi-annual basis on each August 1 and February 1 until
February 1, 2001.
Any payments on this Note shall be applied first to accrued interest and then to the Principal
Amount in respect of which such payment is made.
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.
JBDI44650
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A-1
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 to make a previously due but unpaid Scheduled Payment
to Owner; and ii) any amount required to 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 extend 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 discharged and the Authority shall have no obligation and incur no liability to
make any payments hereunder immediately upon the occurrence of an Event of Default under the
Contract for Private Development, dated , 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 charge 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.
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 consent 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.
JBDI44650
RC125-170
A-2
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 any acts, conditions, and things required
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 form, 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 , 1998.
Chairperson
Executive Director
n
U
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•
•
1?
SCHEDULE A
SCHEDULED
PAYMENT DATES SCHEDULED
PAYMENTS SCHEDULED
PAYMENT DATES SCHEDULED
PAYMENTS
8/1/01 142,584 2/1/14 168,885
2/1/02 142,584 8/1/14 171,243
8/1/02 144,617 2/1/15 171,243
2/1/03 144,617 8/1/15 173,894
8/1/03 146,679 2/1/16 173,894
2/1/04 146,679 8/1/16 176,148
8/1/04 148,788 2/1/17 176,148
2/1/05 148,788 8/1/17 178,635
8/1/05 150,885 2/1/18 178,635
2/1/06 150,885 8/1/18 181,155
8/1/06 153,031 2/1/19 181,155
2/1/07 153,031 8/1/19 183,710
8/1/07 155,205 2/1/20 185,710
2/1/08 155,205 8/1/20 185,299
8/1/08 157,410 2/1/21 185,299
2/1/09 157,410 8/1/21 188,923
8/1/09 159,643 2/1/22 188,923
2/1/10 159,643 8/1/22 191,582
8/1/10 161,907 2/1/23 191,582
2/1/11 161,907 8/1/23 194,277
8/1/11 164,202 2/1/24 194,277
2/1/12 164,202 8/1/24 197,009
8/1/12 168,528 2/1/25 197,009
2/1/13 168,528 8/1/25 199,77711
8/1/13 168,885 2/1/26 140,742
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EXHIBIT B
CERTIFICATE OF COMPLETION
The undersigned hereby certifies that Gramercy Park Cooperative at Lake Shore Drive a
Minnesota cooperative corporation has fully and completely complied with its obligations under
Article IV of that document entitled "Contract for Private Development," dated ,
1998, between THE HOUSING AND REDEVELOPMENT IN AND FOR THE CITY OF
RICHFIELD and , with respect to construction of the Minimum
Improvements located on the tract of land described in the attached Exhibit A In accordance with
the requirements of such document and is released and forever discharged from its obligations to
construction the Minimum Improvements under such above-referenced Article on the
above-referenced tract.
0
DATED:
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD
By
Its Chairperson
By
Its Executive Director
•
JBD144650
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B-1
Exhibit C
0 REDEVELOPMENT PROPERTY DESCRIPTION
Parcel A
Property Address: 710 Lake Shore Drive
Legal Description:
Lots 19, 20, 21, 22 and that part of Lot 23 described as follows: Commencing at a
point in the South line of Lot 23, distant 75 feet westerly from Southeast corner
thereof, thence West to Southwest corner thereof, thence North to Northwest
corner thereof; thence easterly to Northeast corner thereof; thence southerly
along the southeasterly line thereof to a point 44 feet northerly from Southeast
corner thereof, thence northwesterly 64 4/10 feet to a point 78 4/10 feet
northeasterly from beginning; thence southwesterly to beginning.
Parcel B
• Property Address: 6724 Lyndale Avenue South
Legal Description:
That part of Lot 23, Block 3, Fairwood Shores, according to the plat thereof on
file in the office of the Registrar of Titles; Hennepin County, Minnesota,
described as follows:
Beginning at a point on the Southerly line of said Lot 23, at a point 75.00
feet West, measured along the South line of said Lot 23, from the southeast
corner thereof; thence East along the South line of said Lot 23, a distance
of 75.00 feet to the Southeast corner thereof; thence Northeasterly along the
East line of said Lot 23, a distance of 44.00 feet; thence Northwesterly a
distance of 64.40 feet to a point distant 78.40 feet Northeasterly from the
point of beginning; thence Southwesterly a distance of 78.40 feet to the
point of beginning.
Together with all rights in and to any and all streets and alleys adjacent thereto,
vacated or to be vacated, and together with any and all appurtenant easements.
•
C-1
Parcel C
Property Address: Unassigned
Legal Description:
That part of the full width of the alley (labeled Auto Lane on the herein described
plat) lying in Block 3, Fairwood Shores, according to the recorded plat thereof on
file in the office of the Registrar of Titles; Hennepin County, Minnesota,
described as follows:
That part of said alley in Block 3 lying northeasterly of Lots 19, 20, 21, 22
and 23, said Block 3, lying southwesterly of Lots 1, 2, 3, 4 and 5, said Block
3, lying southeasterly of the northeasterly production of the northwest line
of said Lot 19 and lying northwesterly of the northeasterly production of the
southeast line of said Lot 23.
Subject to continued use for public alley.
Parcel D
• Property Address: Unassigned
Legal Description:
That portion of Lake Shore Drive right-of-way as may be vacated.
C
C-2
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 42
Agenda July 20, 1998
Issue Statement:
Authorization to remove Emerson Avenue 64th to 66th Streets from the Richfield Lake
Area master planning process.
Background:
The Richfield Lake master planning process has identified the above referenced as an
area of "proposed change"; from a single family to a townhome type of use.
There are several reasons Emerson Avenue has been part of the plan:
• The Comprehensive Plan has supported this change since 1982.
• Higher density housing uses are directly adjacent.
• Pending bridge and freeway improvements may detrimentally impact the
neighborhoods quality of life and pride in ownership.
• Providing additional housing choices which are better designed for their
location requires redevelopment; removing homes which are impacted by
being adjacent to commercial, freeway, and airport uses.
• Residents and developers have indicated there is a market for new housing
choices.
However, working with the Emerson neighborhood though the Mediation Center,
sufficient information has been made available to suggest the HRA should reconsider
whether redevelopment is appropriate.
The Mediation Center has compiled the following results from a survey sent to the 26
homeowners on June 5, 1998:
• 19 out of 26 owners responded
• 11 owners do not want redevelopment in their neighborhood
• six owners want to sell
• one owner needs more information, which is being prepared
• one owner is neutral; could go or stay
• seven owners did not respond
Through the Mediation Center, the Emerson neighborhood has expressed a need to
know what the HRA is going to do; yes or no to redevelopment. The neighborhood also
wants to know how long they will be left alone. A copy of the letter recently sent by the
Mediation Center is attached. It is anticipated that several owners will attend the July
20 meeting.
is
Recommended Motion:
Remove the Emerson Avenue area from the Richfield Lake Area Draft Master Plan and
do not initiate redevelopment of the area.
Basis of Recommendation:
1. Although a clear majority did not emerge, the information on preferences is
sufficient to make a decision.
2. The homeowners do not perceive the bridge and freeway changes would
detrimentally affect their neighborhood.
3. Sellers can openly sell and future buyers will have confidence that redevelopment
is not pending.
4. If the neighborhood finds the quality of life to decline, they can approach the HRA
to reconsider redevelopment. The HRA will not initiate redevelopment.
Alternative Recommendation:
1. Request the Mediation Center to secure additional responses and hold additional
meetings that identify all owner preferences.
2. Keep the proposed change to townhomes in the Richfield Lake Master Plan and
schedule redevelopment for three, five or seven years from now.
3. Redevelop through condemnation within the next year. Residents and developers
have expressed an interest in redevelopment of this area.
Discussion/Decision Mode:
The neighborhood is best served with an immediate decision. The Richfield Lake
master plan is scheduled to be completed before the end of 1998.
submitted,
James 6-(Prosser
Executive Director
JDP:cak
40
MEDIATION CENTER
•
July 13, 1998
Dear Emerson Neighborhood Resident:
670 Grain Exchange Building North
301 4th Avenue South
Minneapolis, MN 55415-1019
(612) 673-9555
FAX (612) 341-7879
Writer's Direct Dial: 612-341-7869
Thanks to everyone who responded to the initial survey requesting input about whether you were
interested in redevelopment of your neighborhood. The survey also asked whether you needed
more information and many of you sent questions. I forwarded your questions anonymously to
the Richfield Community Development Department, and Bruce Nordquist is gathering
information. He will mail responses to you within a week.
I am writing to update you on the survey results and inform you of the next steps. We received
nineteen responses out of twenty-six households in your neighborhood, or 73% response rate. A
summary of your responses follows:
Response regarding Number of Percentage Comments
redevelopment of Emerson Households
Avenue;
Do not want redevelopment 11 42.3%
Did not respond to survey 7 26.9%
Want to sell 6 23.1%
Need more information before 1 3.85% Two respondents needed more
deciding whether prefer information but also indicated that they
redevelopment or not. did not want redevelopment. These
responses were counted as "I do not
want redevelopment."
Neutral, could go or stay 1 3.85% Not on initial survey.
TOTAL 26 100.0%
Your survey responses also showed that Emerson Avenue residents wanted to know one way or
the other what the HRA is going to do. May of you expressed concern over the length of time
you have felt "in limbo" about whether or not your area will be redeveloped.
•
The Richfield Housing and Redevelopment Authority ("HRA") will consider the question
of whether or not to redevelop Emerson Avenue on Monday, July 20 at 7:00 p.m. at the
Richfield City Hall. Based on your responses to the initial survey, the Richfield Community
Development Department is recommending that the HRA remove the Emerson Avenue area
from the Richfield Lake master plan for redevelopment. The HRA has final decision making
authority on whether redevelopment will occur. If the HRA accepts the staffs' recommendation:
• Redevelopment of your neighborhood as a whole will not occur unless the neighborhood
requests it some time in the future.
Individual residents may choose to sell their homes on the private market.
Your neighborhood has the option to approach a developer or the HRA to consider
redevelopment in the future. However, the City will not initiate redevelopment of
Emerson Avenue in the Richfield Lake area.
The HRA and Richfield City Council encourage residents with all viewpoints on this issue to
attend the HRA meeting.
Your responses did not show a strong desire to continue with a consensus process.* However,
many of you did respond that you were happy with the written communication of information to
40 your neighborhood that the Richfield Community Development Staff prepared in consultation
with other specialists. This letter or the HRA meeting may raise new questions for you. If so,
please do not hesitate to write or telephone me at the address and telephone number on this
letterhead. I will ensure that all questions received before July 31, 1998 are forwarded to the
Richfield Community Development Staff and that they send out written responses.
- Y
Thank you again for your openness and participation.
Sincerely,
Aimee Gourlay
Executive Director
30.1% of all residents wanted to participate in neighborhood meetings
23.1 % of all residents did not want to participate further
23.1 % of all residents wanted to participate with Mediation Center in facilitated discussions
7.7 % of all residents wanted more information
3.85 % of all residents wanted to attend meetings of the "Richfield Lake Neighborhood Association"
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