07-01-96 agnedaCITY OF RICHFIELD, MINNESOTA
MONDAY, JULY 1, 1996
SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY MEETING
6:00 P.M.
WOOD LAKE NATURE CENTER
735 LAKE SHORE DRIVE
AGENDA
CALL TO ORDER
1. CONSIDERATION OF SECOND AMENDMENT TO CONTRACT FOR PRIVATE
DEVELOPMENT; MERIDIAN CROSSINGS, TOLD DEVELOPMENT COMPANY
• HRA LETTER NO. 39
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. 39
Agenda July 1, 1996
Issue Statement:
Consideration of the Second Amendment to Contract for Private Redevelopment;
Meridian Crossings, TOLD Development Company.
Background:
On October 9, 1995 the HRA approved the Contract for Private Redevelopment with
Meridian Properties Real Estate Development L.L.C. D /B /A TOLD Development
Company. Subsequently, on March 18, 1996, the HRA approved the First Amendment
to the Contract for Private Redevelopment. Generally, the First Amendment reflected
changes to the number of stories in the office buildings under both Phase I and II,
amounts of the Limited Revenue Tax Increment Notes, and modifications to the
" but/for' analysis.
Ralph Robinson of TOLD recently proposed additional changes to the project so that
market rents to tenants could be reduced by $1.00 per square foot. In order to do this,
two changes are necessary to the Contract for Private Redevelopment under the
Second Amendment. The first change addresses activities related to the Phase II
• property to occur after the Phase I closing but before the Phase II closing. These
activities include wetland filling, site grading, landscaping, and utility relocation. The
second change addresses the inclusion of a new Schedule C to the Limited Revenue
Tax Increment Note for each phase which would provide for the recognition of costs
related to the Phase II activities outlined above. The attached Second Amendment
provides the specific language of the proposed changes. An updated "but/for" analysis
as prepared by Publicorp, financial consultant to the HRA, will be provided at the HRA
meeting. Both Sid Inman of Publicorp and Ralph Robinson of TOLD will be in
attendance at the HRA meeting.
Recommended Motion:
Approve the Second Amendment to Contract For Private Redevelopment, Meridian
Crossings, Told Development Company.
Basis of Recommendation:
1. The Contract approved by the HRA in October 1995 commits the HRA and TOLD
to the utilization of tax increment financing (Article VII).
2. Proposed rent reductions and Phase II activities occurring prior to the Phase II
closing are supported by the revised "but/for" analysis.
Alternative Recommendation:
1. Delay consideration of the amendment.
. 2. Reject the amendment.
Discussion /Decision Mode:
Approval of these items will continue to evidence support of the project and keep it
viable in the market place.
Respectfully submitted,
James rosser
Executive Director
JDP:ds
• SECOND AMENDMENT TO CONTRACT FOR
PRIVATE REDEVELOPMENT
(TOLD)
THIS AMENDMENT, made and entered into as of the day of
, 1996 by and between MERIDIAN PROPERTIES REAL ESTATE
DEVELOPMENT L.L.C., a Minnesota limited liability company d /b /a TOLD
DEVELOPMENT COMPANY ( "Redeveloper ") and THE HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,
MINNESOTA, Minnesota public body corporate and politic ( "HRA") .
WITNESSETH:
WHEREAS, the HRA and Redeveloper did on November 6, 1995 execute and
deliver that certain document entitled Contract for Private Redevelopment; and
WHEREAS, the Contract for Private Redevelopment was amended on
by a document entitled First Amendment to Contract for Private
Redevelopment, said contract as amended is herein referred to as the Amended
Contract ( "Amended Contract ") ; and
WHEREAS, The Redeveloper has requested that the Amended Contract be
amended in the manner set forth below; and
• WHEREAS, the HRA has reviewed the proposed amendments, has received the
reports and recommendations of its staff and consultants, and has concluded that the
proposed amendments are necessary and appropriate; and that the Redevelopment
envisioned by the Amended Contract is not likely to occur unless the amendments set
forth below are adopted.
NOW, THEREFORE, based upon the mutual covenants and undertakings
hereinafter contained, the Amended Contracts is hereby amended in the following
respects.
I. Article III is amended to read as follows: 1
ARTICLE III
LAND SALE
Section 3.1. Sale to Redeveloper. Subject to the preconditions
hereinafter contained, the HRA agrees to sell and the Redeveloper agrees to
purchase from the HRA the Redevelopment Property.
Section 3.2. Initial Preconditions to Closing. Not later than 90 days from the
date of this Agreement, unless such date is extended by the mutual written consent
Is 1 Unless specifically indicated to the contrary, all time limits referenced
herein, such as 1190 days from the date of this Agreement" shall refer to the date of
the original Agreement (November 6, 1995) .
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• of the parties, the parties shall have reached written agreement on the following
matters:
(a) the portion of the wetland located on the Phase II Property which the
HRA is willing and legally entitled to fill, the allocation of the costs of such activity
and the method for financing such costs, and whether, in the reasonable judgment
of the Redeveloper, the Phase II Property, including the wetland area to be filled,
is of sufficient area and configuration to support the proposed Phase II Minimum
Improvements.
(b) the location of any entry and exit points from and to the Redevelopment
Property and adjacent public roadways, together with any signalization for such
entry and exit points and the allocation of the cost and the method for financing the
costs for such signalization. Any such agreement will, to the extent deemed
appropriate by the HRA include the owners of land which would also be directly
serviced by such access points or signalization.
. (c) the location, layout and design of any interior traffic circulation
systems for the phases and the timing for construction of the same.
(d) the landscape plan for the two phases and the timing for installation of
the same.
(e) whether either of the separate parcels of land lying to the northeast and
northwest of the Redevelopment Property would be included in the transaction and
added to the legal description of the Redevelopment Property.
(f) the condition of the Redevelopment Property with respect to
environmental contaminations and pollution; and the obligations and responsibilities
of the parties with respect to remediation, if any.
(g) the nature, location and cost of removal or relocation any utilities
currently located on the Redevelopment Property which are required to be removed
or relocated due to construction of the minimum improvements and the allocation and
financing of the cost of such activities.
(h) The process by which the HRA may review and evaluate the
Redeveloper's progress during the periods described in Section 3.4 and 4.5A; and
the actions available to the HRA if it determines that the Redeveloper is not
proceeding and with due diligence during such periods.
In the event that the parties are unable to reach agreement on all the matters
and in the time described above, either party may terminate this Agreement by
written notice to the other party whereupon this Agreement shall, notwithstanding
anything in Article X hereof to the contrary, be null and void, and the parties shall
be relieved of any further obligations hereunder.
Section 3.3. Additional Preconditions to Closing. (a) Title. The Authority
shall have 60 days following the execution of this Agreement to provide the
Redeveloper with a commitment for title insurance ( "Commitment ") covering the
Redevelopment Property (which shall include any additional lands as described in
3.2(e) above. The Redeveloper shall have 30 days following receipt of the
Commitment to review the same and make any written objections regarding title . No
objection may be made which does not relate to a matter affecting the marketability
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of title. Objections not made in writing within such 30 day period shall be deemed
waived.
(b) Plat. Upon the execution of this Agreement by the parties, the HRA
shall proceed to replat the Redevelopment Property by the creation of two separate
lots. The location, size and configuration of the lots shall be decided following
consultation with the Redeveloper and shall be designed to each to accommodate one
of the phases. Following the replat, the Commitment will be revised to conform to
the plat, and the Redeveloper shall have 30 days from the receipt of the updated
Commitment to make any objection based upon the replat.
(c) Zoning. Redeveloper shall have rezoned the Redeveloper Property to
PC -2 and shall have obtained a conditional use permit for the phase I minimum
improvements.
(d) Wetlands. The HRA shall have obtained all the necessary permits and
approvals allowing the filing of the portion of wetland described in 3.2 (a) above, and
permitting utilization of the remainder of the Redeveloper Property so as to allow for
the contemplated development.
(e) Bonds. The HRA may condition the closings on its ability to issue and
sell tax increment general obligation bonds in at least an amount which, in the
judgment of the HRA will be at an acceptable interest rate and necessary to finance
the HRA's assistance, including, without limitation the land writedown for the
Redevelopment Property, and the assistance described in Section 7.4.
(f) Governmental Approvals. Except as to obligations imposed on the HRA
however, the Redeveloper has obtained all licenses, permits and approvals necessary
to allow for construction of the Phase I Minimum Improvements.
(g) Financing and Construction Contracts. Redeveloper has provided the
HRA with evidence reasonably satisfactory to the HRA that Redeveloper (i) has the
necessary funds - whether in the form of equity or financing (with all preconditions
to funding removable upon acquisition) or a combination which is sufficient to cover
the purchase of the Redevelopment Property and construction of the Phase I Minimum
Improvements and (ii) has in place construction contracts calling for the
construction of the Phase I Minimum Improvements.
(h) Other Matters. All other matters contained in this Agreement, or in
agreements made pursuant to Section 3.2, which were required to be performed by
Closing have either been satisfied or waived by the party in whose benefit they ran.
(i) Billboard Sign - The HRA shall take the steps necessary to obtain the
removal of the outdoor advertising display currently located on the Redevelopment
Property.
(j) Construction Project. The HRA shall take the steps necessary to obtain
the removal of the construction product currently located on the Redevelopment
Property.
Section 3.4. Closing (Phase I Property) . Subject to the provisions of the
• Agreement contemplated in Section 3.2(h), closing on the purchase and sale of the
Phase I Property shall occur not later than 18 months following the date of this
Agreement; provided, however, that if the Closing can not take place within that
LTBD106084
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• time due entirely to the inability of the HRA to perform any of its preclosing
obligations, then the last date for Closing may be extended at Redeveloper's option
to allow the HRA to perform, but not for longer than an additional six months. At
the end of the six month period (or the end of the 18 month period if no option is
made) either party may terminate this Agreement by giving written notice of such
termination to the other party whereupon, both parties are discharged from any
further obligations hereunder.
t$r Closing. (Phase II Property) .
A. Preconditions. Closing on the Sale of the Phase II Property shall not
occur until all of the following preconditions have occurred or been waived by the
HRA:
• a) all necessary zoning approvals for Phase II have been obtained.
b) the HRA has reviewed and approved the evidence of financing for
construction of the Phase II Minimum Improvements.
C) the HRA has reviewed the construction contracts for the Phase II
Minimum Improvements.
d) the HRA has reviewed and approved the Concept Plan for the Phase II
Minimum Improvements; which Concept Plan indicates a minimum market
value for Phase II of at least $AtJ.
...............................
...............................
e) all other preconditions to the commencement of the Phase II Minimum
Improvements contained in this Agreement or in any agreement
referenced in Section 3.2 have been satisfied or waived.
f) this Agreement is in full force and effect.
B. Closing Date. Subject to the provisions of subparagraph C below,
Phase II Property must occur not later than three years from the date of this
Agreement or one year following complation of the Phase I Minimum Improvements,
which ever is later.
C. Extension. The parties acknowledge that due to a number of factors it
• may be prudent to extend the deadline for Closing of the Phase II Property beyond
the period described in Subparagraph B above. The purpose of this section is to
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• describe the circumstances for which extensions may be granted; the term of any
extension and other methods relating to the granting of extensions.
a) Extensions Generally. Extensions are valid for a period of one year.
Extensions of the type described in paragraph below may be granted for
any of the three years immediately following the expiration of the period
described in B. above. Extensions of the type described in paragraph
below may be granted for either of the first two years immediately
following the expiration of the period described in B above. Request
for an extension must be made not later than 90 days prior to the
expiration of the period described in B above. or of any previously
granted extension. No extension will be granted if the Redeveloper is
in Default of any of obligations under this Agreement.
b) Material Adverse Changes. The HRA will grant an extension if in its
reasonable judgment, based upon material supplied to it by the
Redeveloper that between the date of this Agreement and the date of
the extension request a material adverse change has occurred in the
market which renders construction of the Phase II Minimum
Improvements to be economically infeasible. The conclusion whether
the information submitted reasonably supports such a conclusion will be
at the discretion of the HRA. Factors to be considered include the
following:
i) interest rate for construction financing as compares to Phase I;
vacancy rates and rents for similar property in the same market
area; and
iii) availability of financing and the conditions imposed on such
financing.
C) Whether or not the conditions described in (b) above are present,
Redeveloper may request an extension and will receive such extension
upon satisfaction of the conditions imposed in paragraph (d) below.
d) Extension Charge. The charge for each extension described in
paragraph (c) above is $50,000 and shall be paid to the HRA at the time
the request is made. The amount which is repayable to the Redeveloper
pursuant to Section 10.2.2 is reduced by $50,000 for each extension
granted pursuant to paragraph (b) above, no other charge is to be
imposed for paragraph (b) extensions.
Section 3.5. Purchase Price.
a. Phase I Property. At Closing, the Developer shall pay to the
HRA the amount of $1.00 as and for the Purchase Price for the Phase I
Property.
b. Phase II Property. At Closing, the Redeveloper shall pay to the
HRA the amount of $1.00 as and for the Purchase Price of the Phase II
. Property.
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c . In determining the purchase price for the Redevelopment
Property, the HRA has taken into consideration the estimated fair market
value of the cleared land for the proposed uses, and has also considered the
various undertakings of the Redevelopment hereunder.
Section 3.6. Condition of Property. Except as to obligations of the HRA
described in Sections 3.2 and 3.3, the Redeveloper agrees to accept the
Redevelopment Property AS IS and WHERE IS and agrees to release and discharge
the HRA, its officers, agents and employees from any claims or cause of whatever
nature based upon the condition of the Redevelopment Property except as qualified
above.
Section 3.7. Taxes and Special Assessments. Real estate taxes and special
assessments due and payable with respect to any parcel in the year of Closing on
that parcel shall be prorated as of the date of Closing. Taxes and installments of
special assessments due in years following the year of Closing shall be the obligation
of Redeveloper.
Section 3.8. Closing Costs. Closing costs shall be allocated as follows:
a) except as otherwise provided for in this Agreement, parties shall each
pay their own attorney and consultant fees;
b) the HRA shall pay the cost of obtaining and recording any instrument
necessary to vest title in it; and
c) all other recording fees, deed taxes, and Closing costs and fees shall
be paid by Redeveloper.
d) The HRA will pay the examination fee in connection with the issuance
of the Commitment. The Redeveloper shall pay for the policy or title
insurance.
Section 3.9. Documents to be Delivered at Closing. At each Closing the
following documents shall be delivered:
(a) Purchase Price.
(b) Quit claim deed from the HRA to redeveloper which conveys the
applicable parcel.
(c) Standard form seller's affidavit.
(d) Affidavit required pursuant to Section 1445 of the Internal Revenue
Code.
(e) Such other and further instruments, documents and things necessary
to satisfy any preconditions to closing not previously satisfied, but
which, by agreement of the parties may be satisfied at closing.
(f) Any other instruments or documents requested by the title insurance
company and not inconsistent with the provisions of this Agreement.
II. Article IV is amended to reas as follows:
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0 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 on each phase in accordance with the approved Concept Plans.
Section 4.2. [blank] .
Section 4.3. [blank].
Section 4.4. Concept Plans. The HRA hereby approves the Concept Plans
for Phase I which have been submitted by the Redeveloper as they relate to the
following matters:
(a) marketing plans;
(b) tenant mix projections;
(c) anticipated dates for commencement and completion of the Minimum
Improvements;
(d) general site plan; and
(e) showing the Phase I Minimum Improvements in reasonable detail.
The parties anticipate that the Phase I Minimum Improvements and the land will,
upon completion, have a market value of approximately $ Prior to Closing
of the Phase II Property, the Redeveloper shall obtain the approval of the HRA for
the Phase II Concept Plan. No approval by the HRA shall relieve the Redeveloper
of the obligation to comply with the terms of this Agreement, the terms of the
Redevelopment Plan, applicable federal, state and local laws, ordinances, rules and
regulations, or to construct the Improvements. The HRA reserves the unrestricted
right to reject the Concept Plans for Phase II, or for amendments to the Concept
Plans for either phase, if in its sole discretion the HRA determines that the above
referenced conditions have not been met. Such Concept Plans shall, in any event,
be deemed approved unless rejected in writing by the HRA, in whole or in part.
Such rejection shall set forth in detail the reasons therefor, and shall be made within
twenty (20) days after the date of their receipt by the HRA. If the HRA rejects the
Concept Plans or an amendment in whole or in part, the Redeveloper shall submit new
or corrected Concept Plans within twenty (20) days after written notification to the
Redeveloper of the rejection. The provisions of this Section relating to approval,
rejection, and resubmission of corrected Concept Plans shall continue to apply until
the Concept Plans have been approved by the HRA.
If the Redeveloper desires to make any material change in the Concept Plans
after their approval by the HRA, 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
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written notice by_ the HRA to the Redeveloper, setting forth in detail the reasons
is therefor. Such rejection shall be made 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 approval Concept Plans.
Section 4.5A. Commencement of Construction. Subject to Unavoidable
Delays, and subject to the provisions of the agreement contemplated in Section
3.2(h) the Commencement of Construction for the Minimum Improvements for each
Phase must occur no later than 30 days following the Closing of the Property for that
phase.
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 for each phase, 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 HRA is
satisfied, it will promptly furnish the Redeveloper with a Certificate of Completion
for such phase. 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 with respect to the phase for
which the certificate relates.
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
have failed to complete the Minimum Improvements in accordance with the provisions
of this Agreement, or are 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 invalid and the certificate shall issue for such phase.
IV. Article VII is amended to read:
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•
ARTICLE VIZ
TAX INCRPMENT
Section 7.1. Statement of Purpose. The parties acknowledge that the
development which is proposed by the Redeveloper would not be feasible absent the
land writedown assistance described in Section 3.5 and assistance which is provided
the Redeveloper in this Article VII.
Section 7.2. Phase I Minimum Im rovements. Upon the issuance of a
Certificate of Completion for the Yhase I Minimum Improvements, but only if
Redeveloper has not committed an Event of Default under this Agreement for which
cure has not occurred, the RRA shall deliver
Tax. o Redeveloper the Lialited Revenue
Increment Note (the "Note ") in. substantially the form of the attached Exhibit D.
The IIRA's obligation under this Agreement to make payments to the Redeveloper
With respect to Phase I is entirely limited to the terms of the.Note I.
Section 7.3. Phasa II Minimum Improvements. Upon the issuance of a
Certificate of Completion' for the Phase II Minimurri Improvements, but only if
Redeveloper has not committed an Event of Default under this Agreement for which
cure has not occurred, the HRA shalt deliver to Redeveloper the Limited Revenue
Tax Increment Note (the "Note ") in substantially the form of the attached Exhibit E.
The HRA's obligation under this Agreement to make payments to the Redeveloper
With respect to Phase II is. entirely limited to the terms of the Note II.
Section 7.4. Additional Assistance to Redevelo e
r. In addition to the
assistance described above, the HRA shall provide additional assistance to the
Redeveloper at the Closing on the Phase I Property in an ,amount not to exceed
$500, 000. The actual amount of the payment shall be determined by the Authority
following a review of the Redeveloper's qualifying redevelopment costs by the
Authority's fiscal agent.
Section 7.5. Assessment Acreement . At Closing on each phase, the parties
shall execute the Assessment Agreement for that phase in substantially the form of
the attached Exhibits X or Y as the case may be. The Agreement shall then be
recorded before any liens are placed on the property by the Redeveloper.
Section 7.6. Agee 'ent to Pay Deficiencies. Subsequent to the issuance of
either or both of the Notes escribed i
+tx t " :..... n Sections . 2 and 7 3 isstr6�
,.: •• c Axons 7 and
:.. . :! ; ;;. < :_ if the tax increment received b :the
......... .
HRA in' any `year inrlfh respect to a phase fs"less than the amount necessary to make
the deductions on the Note for that phase, then the HRA shall provide notice to the
Redeveloper of such fact and the amount of such deficiency in Tax Increment. Ten
days after receipt of such notice of deficiency, the Redeveloper shall be liable to and
shall pay to the HRA such deficiency. Failure by the HRA to provide the notice of
deficiency when required by this section shall not relieve the Redeveloper of its
obligation to make the required payments 10 days after the Redeveloper receives
actual notice from the HRA.
The obligation of the Redeveloper to make the payments described in this
Section shall be absolute and unconditional irrespective of any defense or any rights
0 Of set off, recoupment or cnunterelaim it might otherwise have against the HRA or
any other government body or other person.. The Redeveloper shall not fail to make
any required payment under this Section for any cause or circumstances whatsoever,
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9
Z 39Hd 0I E6LEEZ i9' Q I N3AtY2t:J '8 1CQ3NN3N ° WO?13 bO' E I 96- LZ -Nf1C
•
0
including without limitation any change in State property tax laws or any other law,
or any other event, even if beyond the control of Redeveloper.
Section 7.7. Recoupment on Sale. In the event that either Phase of the
Redevelopment Property is sold within 10 years following completion of construction
for that Phase, the Redeveloper shall, from the sale proceeds make payments to the
HRA in amount equal to the lesser of: i) the remaining principal balance and accrued
interest due the HRA under Schedule C of the appropriate Note; or ii) 25% of the
proceeds.
The deduction under the Note for Schedule C payments will thereafter be
reduced or eliminated to reflect such payment.
V. Section 8.6 is deleted.
VI. Sections 10.2.1, 10.2.2 and 10.2.3 in Article X are deleted.
VII. A Exhibits X and Y are added to the Agreement as shown in Schedules A
and A:8'
: hereto.
The Letter of Understanding dated and the related documents
attached to the Letter shall be revised, as necessary, within 30 days of the date of
this Amendment in order to reflect the changes contained herein.
In all other respects the Amended Contract remains in full force and effect
according to its terms.
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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
LIZ
Its
By
Its
MERIDIAN PROPERTIES REAL
ESTATE DEVELOPMENT LIMITED
PARTNERSHIP
By
Its
STATE OF MINNESOTA )
SS
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 1996, by and , the
Chairperson and Executive Director of The Housing and Redevelopment Authority
in and for the City of Richfield, Minnesota.
Notary Public
STATE OF MINNESOTA )
SS
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 1996, by , its of Meridian
Properties Real Estate Development L.L.C. a Minnesota limited liability company,
d /b /a TOLD Development Company.
JBD106084
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Notary Public
0 A
•
SCHEDULE A EXHIBIT X
PHASE I PROPERTY
ASSESSMENT AGREEMENT
and
ASSESSOR'S CERTIFICATION
By and Between
HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF RICHFIELD, MINNESOTA
and
MERIDIAN PROPERTIES REAL ESTATE DEVELOPMENT
L.L.C., A MINNESOTA LDHTED LIABILITY COMPANY D /B /A
TOLD DEVELOPMENT COMPANY
This Document was drafted by:
KENNEDY & GRAVEN, Chartered (JBD)
470 Pillsbury Center
Minneapolis, Minnesota 55402
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• ASSESSMENT AGREEMENT
THIS AGREEMENT, made on or as of the day of , 1996,
and between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF RICHFIELD, MINNESOTA, a public body, corporate and politic (the
"Authority ") and MERIDIAN PROPERTIES REAL ESTATE DEVELOPMENT L.L.C.,
a Minnesota limited liability company, (the "Redeveloper ") .
WITNESSETH, that
WHEREAS, on or before the date hereof the Authority and Redeveloper have
entered into a Contract for Private Development ( the "Development Contract")
regarding certain real property located in the City of Richfield, pursuant to which
the Authority is to facilitate development of certain property, hereinafter referred
to as the "Property' and legally described in Exhibit A hereto; and
WHEREAS, pursuant to said Development Contract the Redeveloper is
obligated to construct a office facility upon the Property ( the "Minimum
Improvements ") ; and
WHEREAS, the Authority and Redeveloper desire to establish a minimum
market value for the Property and the Minimum Improvements constructed thereon,
pursuant to Minnesota Statutes, Section 469.177, Subdivision S; and
WHEREAS, the Authority and the Assessor for Hennepin County (the
"Assessor ") have reviewed the preliminary plans and specifications for the Minimum
Improvements and have inspected such improvements;
NOW, THEREFORE, the parties to this Agreement, in consideration of the
promises, covenants and agreements made by each to the other, do hereby agree as
follows:
1. The minimum market value which shall be assessed for the Property
described in Exhibit A, together with the Minimum Improvements thereon, for ad
valorem tax purposes, shall be $#1 as of January 2, , notwithstanding
any failure to complete construction 'of .such Minimum Improvements by that date.
2. The minimum market value herein established shall be of no further
force and effect and this Agreement shall terminate on the earlier of the following:
(a) The date of receipt by the Authority of the final payment from Hennepin County
of Tax Increments from the Property; or (b) The date when the bonds issued and
referred to in the Contract as the TIF Bonds have been paid in full and retired.
The event referred to in Sections 2(b) of this Agreement shall be evidenced
by a certificate or affidavit executed by the Authority.
3. This Agreement shall be promptly recorded by the Authority. The
Redeveloper shall pay all costs of recording.
4. Neither the preambles nor provisions of this Agreement are intended to,
nor shall they be construed as, modifying the terms of the Development Contract
between the Authority and the Redeveloper.
JBD106084
RC125 -66 X-2
5. This Agreement shall inure to the benefit of and be binding upon the
successors and assigns of the parties.
6. Each of the parties has authority to enter into this Agreement and to
take all actions required of it, and has taken all actions necessary to authorize the
execution and delivery of this Agreement.
7. In the event any provision of this Agreement shall be held invalid and
unenforceable by any court of competent jurisdiction, such holding shall not
invalidate or render unenforceable any other provision hereof.
8. The parties hereto agree that they will, from time to time, execute,
acknowledge and deliver, or cause to be executed, acknowledged and delivered,
such supplements, amendments and modifications hereto, and such further
instruments as may reasonably be required for correcting any inadequate, or
incorrect, or amended description of the Property or the Minimum Improvements, or
for carrying out the expressed intention of this Agreement, including, without
limitation, any further instruments required to delete from the description of the
Property such part or parts as may be included within a separate assessment
agreement.
9. Except as provided in Section 8 of this Agreement, this Agreement may
not be amended nor any of its terms modified except by a writing authorized and
executed by all parties hereto.
10. This Agreement may be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall constitute but
one and the same instrument.
11. This Agreement shall be governed by and construed in accordance with
the laws of the State of Minnesota.
JBD106084
RC125 -66 X -3
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF RICHFIELD, MINNESOTA
By
Its Commission Chairperson
By
Its Executive Director
• STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
•
On this day of , 1996, before me, a notary public
within and for Hennepin County, personally appeared and
, the Chairperson and Executive Director, respectively, of the
Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
(the "Authority ") named in the foregoing instrument and acknowledged said
instrument on behalf of the Authority.
Notary Public
MERIDIAN PROPERTIES REAL
ESTATE, L.L.C.
By
Its
STATE OF )
ss.
COUNTY OF )
On this day of , 19_, before me, a notary public within
and for County, personally appeared , the
partner of Meridian Properties Real Estate L . L . C . , a Minnesota limited liability
company, and acknowledged the foregoing instrument on behalf of the limited
liability company.
JM106084
RC125 -66 X -4
Notary Public
• CERTIFICATION BY COUNTY ASSESSOR
The undersigned, having reviewed the plans and specifications for
improvements consisting of an and related office facility to be constructed on the
land described in the attached Assessment Agreement (Assessment Agreement) , and
having reviewed the minimum market value assigned to such land and proposed
improvements as set forth in the Assessment Agreement, which market value is
hereby certifies as follows: The undersigned Assessor, being legally
responsible for the assessment of the above described property, hereby certifies
that the values assigned to the land and improvements are reasonable.
County Assessor for the
County of Hennepin
STATE OF MINNESOTA )
ss
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
, 1996 by , the County Assessor of the County
of Hennepin.
i
Notary Public
11
JBD106084
RC125 -66 X -5
•
•
EXHIBIT A of ASSESSMENT AGREEMENT
Legal Description of Property
To be supplied prior to execution.
JBD106084
RC125 -66 X-6
0
SCHEDULE A 0 EXHIBIT Y
PHASE I PROPERTY
ASSESSMENT AGREEMENT
and
ASSESSOR'S CERTIFICATION
By and Between
0 HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF RICHFIELD, MINNESOTA
and
MERIDIAN PROPERTIES REAL ESTATE DEVELOPMENT
L.L.C., A MINNESOTA LI IITED LIABILITY COMPANY D /B /A
TOLD DEVELOPMENT COMPANY
This Document was drafted by:
KENNEDY & GRAVEN, Chartered (JBD)
470 Pillsbury Center
Minneapolis, Minnesota 55402
JBD106084
RC125 -66
Y -1
0 ASSESSMENT AGREEMENT
THIS AGREEMENT, made on or as of the day of 1996,
and between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF RICHFIELD, MINNESOTA, a public body, corporate and politic (the
"Authority ") and MERIDIAN PROPERTIES REAL ESTATE DEVELOPMENT L. L. C. ,
a Minnesota limited liability company, ( the "Redeveloper ") .
WITNESSETH, that
WHEREAS, on or before the date hereof the Authority and Redeveloper have
entered into a Contract for Private Development (the "Development Contract")
regarding certain real property located in the City of Richfield, pursuant to which
the Authority is to facilitate development of certain property, hereinafter referred
to as the "Property" and legally described in Exhibit A hereto; and
WHEREAS, pursuant to said Development Contract the Redeveloper is
obligated to construct a office facility upon the Property (the "Minimum
Improvements ") ; and
WHEREAS, the Authority and Redeveloper desire to establish a minimum
market value for the Property and the Minimum Improvements constructed thereon,
pursuant to Minnesota Statutes, Section 469.177, Subdivision 8; and
WHEREAS, the Authority and the Assessor for Hennepin County (the
• "Assessor ") have reviewed the preliminary plans and specifications for the Minimum
Improvements and have inspected such improvements;
NOW, THEREFORE, the parties to this Agreement, in consideration of the
promises, covenants and agreements made by each to the other, do hereby agree as
follows:
1. The minimum market value which shall be assessed for the Property
described in Exhibit A, together with the Minimum Improvements thereon, for ad
.......................
valorem tax purposes, shall be $'.$B as of January 2, ,notwithstanding
any failure to complete construction of such Minimum Improvements by that date.
2. The minimum market value herein established shall be of no further
force and effect and this Agreement shall terminate on the earlier of the following:
(a) The date of receipt by the Authority of the final payment from Hennepin County
of Tax Increments from the Property; or (b) The date when the bonds issued and
referred to in the Contract as the TIF Bonds have been paid in full and retired.
The event referred to in Sections 2(b) of this Agreement shall be evidenced
by a certificate or affidavit executed by the Authority.
3. This Agreement shall be promptly recorded by the Authority. The
Redeveloper shall pay all costs of recording.
4. Neither the preambles nor provisions of this Agreement are intended to,
nor shall they be construed as, modifying the terms of the Development Contract
between the Authority and the Redeveloper.
JBD106084
RC125 -66 Y-2
5. This Agreement shall inure to the benefit of and be binding upon the
successors and assigns of the parties.
6. Each of the parties has authority to enter into this Agreement and to
take all actions required of it, and has taken all actions necessary to authorize the
execution and delivery of this Agreement.
7. In the event any provision of this Agreement shall be held invalid and
unenforceable by any court of competent jurisdiction, such holding shall not
invalidate or render unenforceable any other provision hereof.
8. The parties hereto agree that they will, from time to time, execute,
acknowledge and deliver, or cause to be executed, acknowledged and delivered,
such supplements, amendments and modifications hereto, and such further
instruments as may reasonably be required for correcting any inadequate, or
incorrect, or amended description of the Property or the Minimum Improvements, or
for carrying out the expressed intention of this Agreement, including, without
limitation, any further instruments required to delete from the description of the
Property such part or parts as may be included within a separate assessment
agreement.
9. Except as provided in Section 8 of this Agreement, this Agreement may
not be amended nor any of its terms modified except by a writing authorized and
executed by all parties hereto.
10. This Agreement may be simultaneously executed in several
• counterparts, each of which shall be an original and all of which shall constitute but
one and the same instrument.
LJ
11. This Agreement shall be governed by and construed in accordance with
the laws of the State of Minnesota.
JBD106084
RC125 -66 Y -3
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF RICHFIELD, MINNESOTA
By
Its Commission Chairperson
By
Its Executive Director
0 ) STATE OF MINNESOTA )
ss.
COUNTY OF HENNEPIN )
•
On this day of ' 1996, before me, a notary public
within and for Hennepin County, personally appeared and
the Chairperson and Executive Director, respectively, of the
Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
(the "Authority ") named in the foregoing instrument and acknowledged said
instrument on behalf of the Authority.
Notary Public
MERIDIAN PROPERTIES REAL
ESTATE, L.L.C.
By
Its
STATE OF )
ss.
COUNTY OF )
On this day of , 19_, before me, a notary public within
and for County, personally appeared , the
partner of Meridian Properties Real Estate L . L . C . , a Minnesota limited liability
company, and acknowledged the foregoing instrument on behalf of the limited
liability company.
JBD106084
RC125 -66 Y -4
Notary Public
•
•
r
CERTIFICATION BY COUNTY ASSESSOR
The undersigned, having reviewed the plans and specifications for
improvements consisting of an and related office facility to be constructed on the
land described in the attached Assessment Agreement (Assessment Agreement), and
having reviewed the minimum market value assigned to such land and proposed
improvements as set forth in the Assessment Agreement, which market value is
$t, hereby certifies as follows: The undersigned Assessor, being legally
responsible for the assessment of the above described property, hereby certifies
that the values assigned to the land and improvements are reasonable.
STATE OF MINNESOTA )
ss
COUNTY OF HENNEPIN )
The foregoing instrument
, 1996 by
of Hennepin.
JBD106084
RC125 -66
County Assessor for the
County of Hennepin
was acknowledged before me this day of
, the County Assessor of the County
Y -5
Notary Public
EXHIBIT A of ASSESSMENT AGREEMENT
Legal Description of Property
To be supplied prior to execution.
JBD106084
RC125 -66
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•
In order to achieve the intent of the Concept Plan
and generate development that supports the guiding
principles the Planning Commission recommends the
following design guidelines. While development may
not exactly follow the patterns shown in the Concept
Plan, plans must be consistent with the design
guidelines. Guidelines have been developed for
public spaces, sites and buildings.
Public Spaces Develop a consistent streetscape
through the redevelopment area to define its limits,
to establish a signiiicantsense of district, and to
create a more active street environment for
pedestrians and cars
• Use pedestrian scale streetlights at a regular
interval at all streets within the redevelopment
area
• Provide pedestrian amenities (benches and trash
receptacles) at logical locations along Lyndale Ave
• Require ornamental fences and plantings to
screen parking areas from street views
• Plant street trees at a regular interval at all streets
within the redevelopment area
• Plant other plantings to create highlights at
pedestrian oriented spaces, building entries and
other focal areas
• Establish a method of maintaining streetscape
improvements that is common for all properties
in the district
Mark the entries to the redevelopment area to
reinforce its identity as a district
Establish markers on both sides of Lyndale
Avenue at 76th Street and 74th Street
• Establish markers on 76th Street at the southeast
comer of 76th Street and Aldrich Avenue, and at
the northwest comer of 76th Street and Garfield
Avenue
`e3 "I
Design Guidelines
Create spaces that are not buildings or parking
areas to create interest in the patterns of
development and to provide places for pedestrians
away from busy streets
Create small "pocket plazas" between or beside
buildings that could be used for outdoor
restaurants, eating areas or gathering spaces, and
to create links between parking areas and the
street; develop these spaces to make them feel
like an extension of the street (similar paving,
lights, benches)
Encourage the development of a farmers market
that could use portions of larger parking areas at
off -peak parking times
Establish sidewalks continuously through the
district to provide for uninterrupted pedestrian
circulation
Provide sidewalks exclusively for pedestrian use
along Lyndale Avenue
• Extend walks from Lyndale Avenue along 76th
Street and 74th Street to the limits of the district
• Extend walks south of 77th Street to the main
entries of the Shops at Lyndale and the Hampton
Inn
Close 75th Street between Lyndale Avenue and
Aldrich Avenue to eliminate the potential for "short
cuts "through the neighborhood
• Reroute the alley to reach Aldrich Avenue
• Use the right -of -way to allow for more intense
development or to create additional parking
Configure and locate parking to insure that
buildings remain as the focus of district
• Discourage parking in front of buildings, except
where that parking might occur on the street
• Place parking behind or beside buildings
Lyndale Avenue Corridor • Planning Commission Recommendation • Page 18
• Prohibit parking areas at street intersections
• Make access to parking areas prominent and
visible from the street
Create a buffer between the redevelopment area
and adjacent homes to mitigate any negative
influences of commercial activities in the district
Provide a 40 foot wide bermed and landscaped
buffer strip with a five foot high fence (colored
chain link) at the area south of 76th Street and at
the northeast comer of 76th Street and Lyndale
Avenue
• Require a 15 foot wide landscaped buffer strip
with a similar fence at all other areas
• Establish a method of maintaining the integrity of
the buffer that is common for all properties in
the district
Create parking areas to accommodate expected
demand
• Encourage the development of uses that
creatively share parking by time of day amongst
a variety of uses in order to reduce the total
amount of land dedicated to parking
• Maximize density in the district by discouraging
the development of excess parking
Combine access points from Lyndale Avenue in
order to reduce potential conflicts
• Allow a single access at Lyndale Avenue between
77th Street and 76th Street
Require 150 feet between access points at
Lyndale Avenue and all other redevelopment
parcels
Prevent access to parking areas from alleys;
restructure alley access to serve only residential
uses
Develop continuilyfrom site to site which will allow
the buildings to be the focus of the district
• Establish .a common palette of materials for use
at all sites within the district (planting, lighting,
paving)
• Establish standards for site development that
assure consistency through the district
• Limit the use of free - standing signs and pylon
signs; encourage signs that are an integral part of
the buildings
Buildings Develop a united character for the built
environment to reinforce the sense of a complete
dis&ft emphasizing a character of a commercial
vi/ /age rather than a shopping center
• Establish compatibility between buildings through
similar massing, scale, bulk, and detail
• Allow for individual expression from building to
building, to reflect a character of a district of
individual shops and businesses rather than a
strip center
• Require developers to demonstrate how a
proposed building will be created that considers
neighboring buildings
Establish a character that is more about buildings
and the street than parking area
• Place buildings at the street frontage at all
locations within the district
• Create buildings that address the street, with
front doors to the public space at the street as
well as access from parking areas
• Use elements that are pedestrian in scale, as
opposed to those that are meant to relate to
automobiles and highways
Avoid "formu /a "architecture in order to achieve a
design that better reflects the community
• Prohibit corporate colors, franchise patterns and
buildings that are designed as signs; encourage
creative design that relies on "found" character
rather than introduced character
• Require detail that is integral to the building, not
elements that are applied to a standard building
shell (such as clock, towers or "plastic" awnings)
Develop buildings that re/ate to the district and
people on all sides, not just the public sides; .
eliminate a "back door" appearance of other
commercial areas
Avoid large, blank wall surfaces; encourage
windows, doors or other means of articulating
Lyndale Avenue Corridor • Planning Commission Recommendation • Page 19
•
•
•
large facades
• Make building entries the highlight of the
structure so it becomes obvious that the
development is related to pedestrians
• Integrate mechanical systems into the design of
the building
• Provide trash storage areas that are completely
enclosed and incorporated as a part of the
building
• Require that signs be incorporated into the
building facade, windows or awnings; do not
allow signs that extend more than 12" beyond
the plane of the building facade or signs that
extend beyond the roof line
Develop taller bui ldings at some areas wit/iin the
district to emphasize its role as a gateway and to
provide focus at the center of the district
• Allow two or three story buildings at the
intersection of 76th Street and Lyndale Avenue
and in areas south of 76th Street
Require the use of high quality building materials
and methods to create a stock of buildings that is
enduring
• Utilize materials that are durable, easily
maintained and attractive at dose distances (from
the sidewalk, for example); and materials that
have an attractive pattern, texture and quality
detailing
• Encourage the use of brick, stone or high quality
precast concrete; metals that are matte finish and
neutral in color, with visible comer trim when
used for exterior walls
• Require the use of transparent glass at the
majority of street level windows; prohibit the use
of mirrored glass at street level
• Encourage canvas awnings; prohibit awnings of
nylon or other synthetic materials, as well as
those awning structures meant to be illuminated
from within
Lyndale Avenue Corridor • Planning Commission Recommendation • Page 20
•
•
Project feasibility is a measure that has several
perspectives, those of the tenant, the property
owner, the developer and his/her banker and the
City. The following is a statement of economic
wisdom warranting consideration when planning a
redevelopment project for the Lyndale Avenue
Corridor:
• A prudent city won't participate financially where
there is insufficient economic return on the
public's economic investment.
• Prudent property owners cannot make significant
investments in properties unless they can raise
rents to cover their costs. Rents are their only
source of income.
• Prudent tenants cannot accept higher rents
without a commensurate increase in business to
cover increased costs.
• Cosmetic improvements alone will not generally
improve function or generate more business.
9.0
Costs And Feasibility
"Do nothing" carries a cost. As commercial
property values decline and the demand for
public services continues to increase, the rest of
the city must pick up the costs. This
disinvestment will also adversely affect adjoining
neighborhoods.
The project recommended as having the highest
priority for redevelopment is the 7600 block east and
west sides and the 7500 block east side near 76th
Street. The following budget defines the possible
costs associated with the 7600 block project(s)
should it be redeveloped in accordance with the
recommended altemative.
TABLE 3
PROJECT COSTS - 7600 BLOCK
Site Assembly Costs
Site Improvements
WEST EAST
$3,641,500 $2,575,500
I :. IYXIXI
• Where rents are increased appreciably, many Subtotal $3,728,500 $2,661,500
existing businesses will relocate.
Engineering/conbngency 745,700 532,300
Administration 447,420 319,380
• Projects involving lesser amounts of
improvement are those most able to TOTAL $4,921,620 $3,513,180
accommodate existii n owners and tenants.
PUBLIC COSTS
• In situations where values are declining and there
is no private reinvestment and no public
intervention, values and conditions will virtually
always continue to deteriorate. Small property
owners have a limited ability to reverse the trend
especially in situations like Lyndale Avenue
where maximum cooperation will be necessary.
Streetscape (landscaping, fumishings, signage) $858,700
Design /contingency 172,000
TOTAL $1,030,700
Lyndale Avenue Corridor • Planning Commission Recommendation • Page 21
•
•
•
The Planning Commission has considered several
funding sources, the most imporant of which will be
tax increment financing (TIF). Without TIF, almost no
project which involves lasting structural change will be
possible. The Planning Commission cannot offer a
specific financing mix but recommends consideration
by the HRA of some or all of the following methods
of financing public improvements.
For the redevelopment of Lyndale Avenue, a new
redevelopment tax increment financing district is a
potential funding tool. Assuming 138,000 square feet
of new building space, approximately 1/3 of which is
rental housing and 2/3 commercial property, the
principal available to the project would be $2.1
million and $2.4 million over 25 years if fiscal
disparities is born by the tax increment district.
An option that could increase the available tax
increment to the project would be to have fiscal
disparities contributed from outside of the tax
increment district. Over 20 years, the amount of
increased increment as a result of not contributing
from inside the district would support another $1
million in original principal for a total of $3.1 million.
A rationale for relying upon other properties to make
the fiscal disparities contribution would be that the
LHN District will be decertified for taxes payable in
2002. The LHN captured value will increase the tax
base of the City by almost $2 million in tax capacity at
the time of the decertification and a potential annual
increase of revenues to the City alone of over
$500,000. justification for using at least a portion of
the LHN value for the fiscal disparities contribution of
the Lyndale Avenue project is possible if one
considers that the contribution required would
amount to less than ten percent of the tax capacity of
the LHN District and that future redevelopment will
further increase the long -term viability of the City's
tax base.
However, if $3.1 million is available due to a
contribution to fiscal disparities from outside of the
new district, a portion of the Lyndale Avenue project
All remains to be funded. If an additional ten percent
of the LHN contribution to the City tax base were
assigned to the Lyndale project, another $600,000 of
principal amount would be available to the project for
a total of $3.7 million.
Other resources of revenue may be available
including a grant from the Livable Communities
Program, land proceeds from the sale of property
and Municipal State Aid (MSA) funding. Competition
for the former is expected to be very intense.
TABLE 4 represents a listing of potential funding
sources.
TABLE 4
POTENTIAL FUNDING SOURCES
Land Sale Proceeds $650,000
Project Tax Increment 2,100,000
Fiscal Disparities Contribution 1,000,000
Livable Communities 500,000
MSA Funds 250,000
Subtotal $4,500,000
This represents approximately 50 percent of the
total project cost. To fund the remaining 50
percent, consideration could be given to
contributing the entire remaining City benefit of the
LHN District ($400,000 per year for 20 years) to
the Lyndale Avenue project to cover the shortfall.
This would = capture the school district or County
tax revenues over the 20 year period.
In addition, there will be a need to fund streetscape
improvements throughout the corridor including
landscaping, sidewalks, furnishings, entry features
and signage. Some or all of this cost may be funded
with special assessments to benefitting properties.
These improvements may need to be phased to
correlate with redevelopment plans.
Lyndale Avenue Corridor • Planning Commission Recommendation • Page 22
•
•
•
There are seven strategies that will be important and
are recommended by the Planning Commission to
implement the Lyndale Avenue Plan. They include a
redevelopment strategy, a corridor enhancement
strategy, a strategy to correct current ills, a
neighborhood protection strategy, a land acquisition
strategy, a financing strategy and a land use control
strategy. Each are described in more detail as
follows:
Recommended Redevelopment Strategy
Because of the severity of blight in the 7600 block
west side and the probable loss of parking in the
7600 block east side, attributable to the proposed
widening of Lyndale Avenue, these blocks should be
given redevelopment priority. The east side of the
7500 block also represents a redevelopment priority
because it, like the 7600 block, takes houses on the
west side of Garfield Avenue and should, therefore,
be linked with the 7600 block regarding the timing of
redevelopment. The primary purpose of these
projects must be to correct or alter the structure of
the commercial area, rather than simply make it
pretty, so that it can be competitive in the
marketplace over the long -term.
Objective l: Phase development to reflect economic
real tes begninning with the 7600 block and the east
side of the 7500 block near 76th Street.
Objective 2: Market and redevelop the 7600 block
east and west sides and the east side 7500 block by
the tum of the century (2001).
The remainder of the corridor evidences stress but
to a much lesser degree than the primary
redevelopment blocks. Within this area, several of
the existing businesses are expected to remain
suggesting that there will be opportunities for
10.0
A Strategy to Get It Done
relatively small redevelopment projects, perhaps
some by present landowners. For this area, this
document primarily represents a concept illustrating
how it should develop rather than an implementation
strategy.
Objective 3.• Be prepared to respond to
redevelopment requests at any time a proposal is
made, considering the guidelines that are established
by this plan.
Due to the number of businesses and residences that
may be displaced by the project, it will be especially
important for the City to establish a course of action
and follow it religiously.
Recommended Action Steps include:
Agreement by the City regarding what it can
afford to bring to the project.
Solicitation of developers as partners in the
redevelopment effort. Developers should be
selected based on reputation and experience
with urban mixed use developments.
• Establish guidelines for developers including but
not limited to:
I ) Property purchase requirements.
2) Types of uses preferred.
3) Project limits.
4) Public involvement.
5) Performance criteria including the following:
a) Screening of parking lots and service
areas from residential view.
b) No direct vehicle access to local
residential streets.
c) Restricted vehicle access to shared
alleys.
Lyndale Avenue Corridor • Planning Commission Recommendation • Page 23
•
1-1
d) Minimal traffic increases on local
residential streets.
e) Provision for public transit.
f) Maintenance of pedestrian
connections to the neighborhood.
g) Shared parking to minimize the total
number of spaces while maximizing
development potential.
h) Retention of existing businesses
wherever possible and feasible.
1) Degree to which the gateway is
achieved.
j) Degree to which potential nuisances are
mitigated (odor, noise, debris).
k) Economic feasibility.
1) Compliance with design guidelines.
6) Timeline /performance.
• Continuous monitoring of the development and
reporting to the neighborhood and business
community on project status and any changes
that might, from time -to -time, occur.
Objective 4. Work dose/, with businesses in the
corridor that are intended to stay and may wish to
make substantial improvements in an effort to insure
that they comply with the design guidelines:
Recommended Corridor Enhancement Strategy
While streetscape improvements (landscaping,
lighting, entries, signage, etc.) gives support to
redevelopment efforts, in and of themselves they
cannot be relied upon to sell goods and services.
That is why such improvements must be considered
supportive of and not an alternative to
redevelopment.
Objective S.• Correlate streetscape improvements
with redevelopment efforts
On the other hand, some parts of the corridor will
experience relatively little immediate change or
redevelopment in the near -term and a number of
businesses are intended to remain in the corridor.
Objective 6: Use phased streetscape improvements
as an inducement to upgrade those parts of the
corridor where redevelopment is not imminent.
Recommended Action Steps include:
• Design of the streetscape by the City.
• Development of an equitable cost recovery
mechanism based on benefits received.
There are a number of problems associated with the
corridor that will not be corrected immediately, or
perhaps ever, by redevelopment. These include
businesses where parking occurs on residential
streets (thus precluding snow removal), alley conflicts
and traffic using residential streets. These are
problems that should be addressed now, in as much
as possible, to improve compatibility between
residential and business uses.
While the integrity of the neighborhood may depend
on solving these problems in the near -term, it should
be understood that there are always likely to be
unresolved conflicts in edge locations that do not exist
elsewhere in the neighborhood or community. This
is the nature of edge locations. It is also important to
note that many residents can accept manageable
conflicts associated with mixed use as a trade -off for
convenience.
Objective 7 Minimize land use conflicts, where ever
possible, that could have the effect of reducing
residential property values and causing a trend to
renter occupancy.
Recommended Action Steps include:
• Development of a screen buffer behind the
Metro Dental Clinic and implementation in
conjunction with the Clinic provided funding is
available and agreement can be reached
between the parties.
• Better enforcement of a ban on residential street
parking during snow emergencies.
Lyndale Avenue Corridor • Planning Commission Recommendation • Page 24
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• Continuous monitoring of the parking situation at
the Metro Dental Clinic and the search for
alternative ways to provide for shared parking.
• Traffic counting on Aldrich Avenue in both the
7400 and 7500 blocks to assess current
volumes.
• Temporary dosing of 75th Street at Lyndale
Avenue to determine how traffic patterns will be
altered.
• Continuous experimentation with traffic patterns
based on current counts.
• Close monitoring of alley conditions (particularly
odor and debris) and stricter enforcement of
nuisance violations.
The City asked an appraiser to assess the value
impacts of the plan proposal on the remaining
neighborhood. His findings were that the keys to
maintaining value are minimizing business access to
shared alleys and /or streets that interface with
residential properties and minimizing visual access
from homes to parking lots and service areas.
Objective 8.• Ensure that each project meets or
exceeds the access and screening requirements of
the plan.
Recommended Action Steps include:
Design, by the City, of buffers. The City should
also stipulate compliance with the City's plans as
a part of the development agreement.
City to mandate buffer area maintenance in
accordance with acceptable standards as a
restrictive covenant or
City to be compensated by developer /owner for
buffer area maintenance.
Objective 9. Ensure consistency with the: design
guidelines established herein.
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One of the most difficult problems associated with
redevelopment is land acquisition and trying to
eliminate as much uncertainty for residents and
business persons as possible while the process
evolves. Uncertain timelines may make it somewhat
difficult to lease business properties and sell homes.
The City may have to intervene in either situation to
make sure that the project or projects are able to
move forward and that residents, in particular, are
not locked into situations which depress property
values. On the other hand, developers also need
assurances that a few landowners will not stop the
project.
Objective /0.• Delegate /and acquisition to
developers Employ the power of eminent domain
only as a measure to ensure that the project is not
compromised or severely delayed.
Objective l l: Be sure residents and
businesspersons are treated fairly.
Objective /Z: Give residents who demonstrate
hardship the assurance that they will have buyers for
their homes
Recommended Action Steps include:
• Development of a redevelopment schedule that
can be complied with by the developer.
Be prepared to intervene with the acquisition of
residences where they are scheduled for
redevelopment if hardship can be demonstrated
and development is imminent. Eligibility shall be
as prescribed by the Right -of -Way Acquisition
Loan Program Guidelines issued by the
Metropolitan Council
• No matter who purchases the property (City or
developer), the City/HRA should insure that the
intent of mandated federal relocation benefits are
fully complied with.
Lyndale Avenue Corridor • Planning Commission Recommendation • Page 25
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The primary source of funding for improvements to
the Lyndale Avenue corridor will be tax increment
financing (TIF) and special assessments. A special
service or taxing district should also be considered to
insure proper long-term maintenance of the corridor.
Objective 13: Pledge fnandal support for projects
which reflect the overall public beneSt to be realized
from them.
Objective /4. Spread tie cost of improvements in
accordance with benefits received.
Objective IS. Insure feasibility and the long -term
viability of project.
• Employ special assessments for streetscape and
other public improvements in accordance with
benefits received.
• Consider expanding the TI F District or pooling to
generate the revenue needed to make the
project feasible.
Literally interpreted, the City's current zoning code
(setbacks, etc.) would preclude redevelopment of the
Lyndale Avenue condor. Considerable flexibility will
be required. Considerable assurances will also have
to be provided by developers to insure that the
neighborhood will be adequately protected.
Recommended Action Steps include:
Objective 16: Allow maximum flexibility by
• Seek guarantees from developers or structure a developers to provide opportunities for meativity and
pay -as- you -go approach to the project using W. the development of viable projects
• Consider taking an equity position in the project
as a means to insure project feasibility. Recommended Action Steps include:
• Require, as a condition of the development
agreement, that developers /owners participate • Amend the Comprehensive Plan to reflect mixed
in a special service district to insure the long -term use development and support the financing of
maintenance of the project. the project(s).
• Explore funding potential from the Livable • Establish a special design district exclusively for
Communities Demonstration Program. the Lyndale Avenue Corridor which provides
for consistent urban design.
Lyndale Avenue Corridor • Planning Commission Recommendation • Page 26
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Appendices
CORRIDOR MEETING AGENDAS
- CORRIDOR MEETING RESULTS
NEWSLETTERS
PLANNING PROCESS
-TIME AND EVENT SCHEDULE
ALTERNATIVES EVALUATIONS
-PROS AND CONS
HYBRID PLAN EVALUTATION
- BUSINESSPERSONS
- RESIDENTS
MARKET STUDY
Lyndale Avenue Corridor - Planning Commission Recommendation - Page 27
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