11-20-89 agenda??
HOUSING AND REDEVELOPMENT AUTHORITY
. HRA Letter No. 37
Agenda November 20, 1989
Issue Statement:
Continuation of?1989 Revised/1990 Proposed Budget Hearing.
Background:
The 1989 Revised/1990 Proposed Budget Hearing was scheduled and
notice published for October 16, 1989. At that hearing, an
executive overview of the budget was presented and discussed.
During those discussions, some narrative changes regarding
explanations of the Housing Assistance Program and I/L/N public
improvements were suggested.
Those changes have been made.
Also discussed.during those hearings was the uncertainty of the
HRA and relocation levy for 1990 allowable by the new tax law.
Thus, a hearing continuation was suggested. Those levies are now
known and are:
HRA: $151,422
RELOCATION: $ 15,027
• These levies represent some $63,622 of additional levies over the
previous maximum levy available under the forum law in effect.
The additional levies will be used to reduce transfers from the
Capital Fund and to reimburse to Capitol Fund for prior transfer
to the General Fund.
Recommended Motion:
Adopt the 1989 Revised/1990 Proposed budgets and tax levies for
the HRA, including relocation levy.
Basis of Recommendation:
1. A 1989 Revised/1990 Proposed budget has been carefully
prepared and considered.
2. Notice of the original Budget Hearing was published.
3. A 1990 tax levy has been established based upon the latest
tax legislation.
4. A proposed levy adopted by the City Council on November 13,
1989, included the latest levy calculation recommended
herein.
Alternative Recommendation:
1. Continue the Budget Hearing to a future date for further
• consideration. However, a final levy will likely be
adopted by the City Council on December 6, 1989.
2. Modify the budget and/or levy presented and adopt the
.
modified figure.
Discussion/Decision Mode:
It is recommended that the budget and levy be adopted on November
20, 1989 to allow ample time to comply with state timeliness for
budget and levy certification.
Res c u y submitted,
Jame Prosser
Exe tive Director
JDP:cak
0
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 36
November 20, 1989 Agenda
Issue Statement:
Authorization to execute agreements with Self Reliance Center
(SRC), and Minnegasco for weatherization services.
Background:
Funding for Project Air (PA) weatherization services (also known
as housedoctoring) have been offered to the Richfield Energy
Program by Minnegasco. A blower door analysis followed by
selective caulking, sealing, and insulating assists lower income
homeowners in reducing heating costs and improving comfort.
The PA services are offered by Minnegasco in response to the
Minnesota Public utilities Commission (MNPUC)interest in
supporting local conservation efforts. The funding of the
anticipated services represents a contribution of approximately
$14,800 from Minnegasco.
To receive the funds, Minnegasco requires Richfield to identify a
weatherization contractor. Staff prepared, distributed, and
evaluated responses to a Request for Proposal. Self Reliance
Center, our present audit and furnace efficiency tune-up program
contractor responded with a price of $400 per residence. This is
• a reduction from the $420 service provided in previous years. A
competing contractor, Energy Outfitters, matched the $400 per
residence cost.
Since 1985, Richfield has contracted with the Self Reliance
Center (SRC) to deliver "Bundle Up Richfield" energy program
services. The current agreement with SRC, which was authorized
by the HRA in September, 1989, does not include provision for
delivery of weatherization services. However, SRC has provided
approximately 190 weatherization services during our long
relationship. Also, SRC is the audit contractor which has been
responsible for the audit service which earned Richfield both
state and national awards of excellence during 1987 and 1988.
The agreement for performing weatherization services with SRC
clearly defines the scope of service, level of satisfactory
service, and billing procedures for payment. Appropriate
insurance, liability, and holdharmless provisions to protect the
HRA and residents are also included in a form similar to that
used for all agreements the HRA presently has with SRC.
The agreement for funding weatherization services with Minnegasco
clearly defines roles and responsibilities. The HRA markets the
program, selects the contractor and clients, and provides
documentation of work performance in a manner satisfactory to
• Minnegasco. Minnegasco provides up to $14,800 to fund up to 37
PA's. The agreement is in a form similar to those authorized in
previous joint HRA/Minnegasco programs.
At the present time, approximately 15 lower income households
have been qualified and are waiting for service. It is expected
that the remaining requests for PA weatherization services will
be received from previous or new audit clients. The agreements
being considered expire in December, 1990.
Recommendation:
Authorize execution of agreements with Minnegasco and Self
Reliance Center to provide Project Air weatherization services
through 1990.
Basis of Recommendation:
1. Authorization will allow the Richfield Energy Program to
provide PA weatherization services of up to 37 Richfield
households.
2. Minnegasco is required to provide weatherization services
by the MNPUC and has offered these services to the Richfield
HRA.
3. The funding, up to approximately $14,800, will provide
services for up to 37 Richfield households.
4. SRC has submitted a competitive cost per service and is
most familiar with all Richfield Energy Program services.
• They are one of the few contractors with the knowledge,
ability and staff to provide the needed services.
Alternative Recommendation:
Not approve the agreement. However, no other funding is
available for weatherization services at this time.
Decision/ Decision Mode:
If the agreements are authorized by the HRA, implementation would
occur to deliver services through 1990.
submitted,
RespeTD.rosser
James Execurector
0 --
RESOLUTION NO.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
RESOLUTION RELATING TO PROVIDING
ENERGY PROGRAM SERVICES
WHEREAS, weatherization services are an element of the HRA's
"Bundle Up Richfield" activities; and
WHEREAS, Minnegasco is required to fund and implement
weatherization services for low income persons by the Minnesota
Public Utilities Commission (MNPUC); and
WHEREAS, Minnegasco has offered funds for Richfield Project
Air Weatherization Services provided that a service contractor
can be identified; and
WHEREAS, the Self Reliance Center has submitted a
competitive cost for the services and is an experienced services
contractor in Richfield.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield as
follows:
• 1) The Executive Director and Chairperson are authorized to
execute agreements with Minnegasco to provide funding
for weatherization services.
2) The Executive Director and Chairperson are authorized
to execute agreement with Self Reliance Center for
providing weatherization services.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield this 20th day of November, 1989.
Thomas E. Harms, Chairperson
ATTEST:
Joan Helmberger, Secretary
0
C89-4-HRAltrll/20
• HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 35
November 20, 1989 Agenda
Issue Statement:
Adoption of a resolution establishing urban design guidelines for
the Penn Avenue Sixty-Sixth Street (PASSS) Area.
Background:
A significant portion of the recently completed PASSS planning
study was the formulation of a design framework manual. Staff,
the consulting firm of Yaggy-Colby and the Advisory Committee
participated in its drafting. An overview of the manual was
presented at the PASSS neighborhood meeting on October 18, 1989.
Mr. Chris Colby of Yaggy-Colby will provide an overview of the
Design Framework Manual to the HRA at the November 20, 1989
meeting.
City Code Section 410 provides for the establishment of urban
design guidelines in designated areas of the community. The
Design Framework Manual is intended to be the urban design
guideline for the PASSS Area. In the past, similar guidelines
were adopted for use in the LHN. Their use has continued to the
present time.
A copy of the Design Framework Manual is attached. (Once
is adopted, the Manual will be bound). It is divided into four
sections:
- streetscape elements
architectural building elements
- site design elements
- convenience and efficiency elements.
Recommendation:
Adopt the attached resolution which:
1. Establishes the Design Framework Manual as a guide to be
utilized in evaluating development proposals.
2. Requests the Planning Commission to review the Manual at
their November 28, 1989 meeting and recommend adoption
by the City Council.
3. Urges the City Council to adopt the Design Framework Manual
at their meeting on December 11, 1989, as the urban design
guideline for the PASSS Area.
• Basis of Recommendation:
A design framework manual will provide the following:
1. A coordinated system of urban design.
2. A standard by which private development proposals may be
reviewed.
3. A "positive new image" for the area.
4. Coordination of private development design on the various
sites which will be developed; and coordination of the
private development with elements of the public streetscape.
This will help assure that public and private investment is
complementary.
5. A longer period of economic vitality because the
environment is more pleasant and the surrounding residential
land uses are better protected.
Alternative Recommendation:
1. Direct the staff to modify the manual.
2. Reject the manual.
3. Delay action until a future date.
If the Design Framework Manual is not approved on December 11,
1989, constuction would be permitted that did not comply
• with the recommendation of the Committee.
Discussion/Decision Mode:
A favorable recommendation by the HRA on November 20, 1989 would
make it possible for the Design Framework Manual to be acted on
by the City Council on December 11, 1989 and become effective at
that time.
Respectfully submitted,
James D Prosser
Execu a Director
0
RESOLUTION NO.
• THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY
OF RICHFIELD, MINNESOTA
RESOLUTION RELATING TO DESIGN GUIDELINES
FOR THE PENN AVENUE SIXTY SIXTH STREET AREA (PASSS)
WHEREAS, the planning study commissioned by the Richfield
Housing and Redevelopment Authority (HRA) has recently been
completed for the area identified in the attached map; and
WHEREAS, considerable public and private investment is being
contemplated to upgrade the area; and
WHEREAS, it is desirable to coordinate the design of these
public and private improvements; and
WHEREAS, the coordination of the design will improve the
economic vitality of the area; and
WHEREAS, City Code Section 410 provides for the formulation
and application of urban design guidelines.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
• Redevelopment Authority in and for the City of Richfield,
Minnesota, as follows:
1. The Design Framework Manual is to be used as a standard for
guiding design decisions related to the upgrading of the
PASSS.
2. The Design Framework Manual is to be used to coordinate the
design of public and private improvements.
3. The Planning Commission is requested to review the Design
Framework Manual at their November 28, 1989 meeting and urge
action by the City Council on December 11, 1989.
4. The Executive Director is directed to present to the City
Council on December 11, 1989, the Design Framework Manual
with the request that it be adopted on that day as the urban
design guidelines and administered as provided under section
410 of the City Code.
Adopted by the Housing and Redevelopment Authority in and for
the City of Richfield, Minnesota this 20th day of November, 1989.
0
ATTEST:
Thomas E. Harms, Chairperson
Joan Helmberger, Secretary
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ASSOC ATES
HOUSING AND REDEVELOPMENT AUTHORITY
• HRA Letter No. 34
November 20, 1989 Agenda
Issue Statement:
Transmittal of Penn Avenue and Sixty-Sixth Street (PASSS)
redevelopment and tax increment financing (TIF) plans (Plans) to
the Planning Commission for their opinion as to the conformance
of the proposed land use to the City's Comprehensive Plan.
Background:
In 1988, the HRA authorized and directed staff to undertake a
planning study of the area identified as PASSS. The results of
that study are reported as a separate agenda item for the
November 20, HRA meeting.
The Plans related to this agenda item, incorporate the results of
the planning study into a format required by state law and
precedent. Neither the redevelopment plan nor the TIF plan
propose redevelopment or a bond sale at this time. Establishing
a project now is, however, appropriate. Since July, staff has
met informally with thirteen different development groups
interested in PASSS. Two major property owners have also
expressed an interest in upgrading their property. Establishing
a project now will provide a direction for staff and it will also
indicate to the developers that the city is committed to
• upgrading the area. Business and property owners will also have
a clearer sense of the future direction of the city.
At this time, the plans contemplate administration very similar
to existing redevelopment projects. The following outlines some
of the significant items. The single document is divided into
three parts, Part I Redevelopment Plan, Part II Tax Increment
Financing Plan, and, the Appendices. The redevelopment plan
boundary coincides with the study area boundary described on page
3 and on the map in Appendix A, page A-1. The goals and
objectives as adopted by the PASSS Advisory Committee appear on
pages 3-5. It is anticipated that the upgrading of the area
would include both redevelopment and renovation. Office, retail
and residential uses would be encouraged. North of 66th Street
the emphasis would be on redevelopment while South of 66th
Street renovation, "in-fill", facade treatments, and parking
improvements would be the focus. A streetscape of trees would
help tie the entire area together. Section E, beginning on page
5, lists the activities anticipated to be undertaken by the
HRA/City and developers.
The tax increment plan, Part II, begins on page 10. The boundary
of the TIF varies somewhat from that of the redevelopment project
in that it is smaller. See Appendix A, page A-1. Excluded from
the TIF are Fraser-Whitbeck, all the single family homes and most
of the apartment buildings. The sites excluded at this time seem
unlikely candidates for redevelopment. However, because they
remain in the redevelopment project, TIF funds could be utilized
70, -7-/
• for streetscape improvements, buffering and a rehabilitation
program if deemed appropriate in the future.
Apartment buildings which remain in the TIF include one at 6445
Queen Avenue and those north of 63rd Street between Penn and
Oliver Avenues.
The project would be a 25 year Redevelopment District. During
the planning study, data analysis indicated that if bonds were
issued for redevelopment purposes, the amortization period would
need to be fifteen to twenty years. However, on page 13 under L.
Duration of District, it is noted that the district duration may
be reduced in the future.
The Plans would need to be amended when a specific redevelopment
proposal was selected for implementation. However, to conform
with the legal requirements of a plan document, it was necessary
to prepare financial projections which appear in Appendix C, D
and E on pages A-4 through A-7. The numbers are accurate
projections based on reasonable assumptions for a potential
development site within PASSS.
Recommendation:
Adopt a motion authorizing the Executive Director to request the
Planning Commission, at their November 28th, 1989 meeting, to
provide their findings as to the conformance of the proposed
• redevelopment and TIF districts with the Comprehensive Plan.
Basis of Recommendation:
1. The Plans are the result of the recently completed planning
study in which a broad cross-section of the community
participated.
2. In the opinion of legal counsel, the Plans conform with
statutory requirements.
3. Developers and some existing property owners have expressed
interest in undertaking projects.
4. With the establishment of PASSS as a redevelopment project,
all the major retail areas of the city will be programmed
for upgrading.
5. The city will be pressing forward on a significant long
range goal of tax base diversification.
Alternative Recommendations:
1. Reject the Plans.
2. Direct staff to modify the Plans.
. 3. Delay action on the Plans until a future date.
Discussion/Decision Mode:
The contemplated time schedule for processing these Plans is as
follows:
November 20th, HRA referral to Planning Commission
November 28th, Findings by Planning Commission
December 18th, HRA action to approve or reject the Plan.
If action is to approve,
January 8th, City Council public hearing and acceptance
or rejection of Plan.
Respectful submitted,
James Prosser
Execut' Director
HOUSING AND REDEVELOPMENT AUTHORITY
HRA Letter No. 33
Agenda, November 20, 1989 -'
Issue Statement:
Adoption of a resolution authorizing the execution of an
Agreement with the Robert Larsen Partners, Inc. (Developer).
Background:
On August 21, 1989, the HRA authorized staff to negotiate an
"exclusive rights" agreement. The attached Agreement is the
result of those negotiations. The Agreement recognizes that the
developer has formulated a preliminary proposal for a portion of
the ILN project west of Lyndale Avenue. Significant portions of
the Agreement follow.
1) Section 1 lists the areas in which additional
evaluation of the development proposal is necessary
and includes performance dates.
2) Item l.h. indicates the goal is to negotiate a
Development Agreement by April, 1990.
3) In Section 2, the Developer agrees to pay $30,000
to help offset costs related to the continued work
on implementing the concept.
4) Section 3 identifies areas in which the City, HRA and
Developer will cooperate.
5) Item 3.a. states that neither the City nor the HRA will
negotiate with others to redevelop the area for which
the Developer has submitted a proposal. Section 6
further discusses this restriction.
6) Item 3.c. permits the City and HRA to consider any
proposal for improvement made by an owner or tenant.
Section 7 describes a process to be followed when
this situation arises.
7) Item 3.h., i. through iv. identifies the basic
assistance required by the Developer.
8) Termination of the Agreement is discussed in Sections
8 and 9.
Recommendation:
Adopt the attached resolution which 1) approves the Agreement,
2) authorizes the Chairman and Executive Director to execute it,
3) directs the Executive Director to present the Agreement to the
City Council for their consideration and, 4) requests the Council
to approve the Agreement.
X/ - /
Basis for Recommendation:
1. The Developer's track record is good.
2. Negotiations were authorized by the HRA at their August 21,
1989 meeting.
3. The Agreement contains performance tasks and dates by which
to evaluate progress.
4. For the parties to effectively and efficiently determine the
final feasibility of the concept, this Agreement is
necessary.
5. By this Agreement, the HRA is not making a final irrevocable
commitment to the Developer. However, it is an indication of
a desire to proceed in good faith to negotiate a Developer
Agreement and proceed with the development.
6. Because of the nature of the development concept there would
be a role for the City thus the City Council must be a
party to the Agreement.
Alternative Recommendations:
1. Delay action on the Agreement.
2. Refuse to approve the Agreement.
3. Alter the content of the Agreement.
Discussion/Decision Mode:
Approval by the HRA would result in the Agreement being presented
to the City Council on November 20, 1989 at a Special Meeting.
The Developer also needs the Agreement to proceed in a timely
manner with negotiations related to property purchase, leasing
and financing.
Resp je y submitted
Jameosser
Execirector
•
RESOLUTION NO.
The Housing and Redevelopment Authority In
and For The City of Richfield, Minnesota
Relating To The Approval Of An Agreement
With The Robert Larsen Partners, Inc.
WHEREAS, the City and HRA have established the Interstate-
Lyndale-Nicollet Redevelopment Project Area ("Project Area")
under the authority of Minnesota Statutes, Chapter 469 (the
"Act"), and have established a Redevelopment Tax Increment
Financing District ("TIF District") and adopted a Financing Plan
("TIF 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 Interstate-
Lyndale-Nicollet Redevelopment Project Plan and in accordance
with the TIF Plan adopted by the City, on November 12, 1985, and
HRA on October 21, 1985, following extensive study and
preliminary work conducted by the City and HRA and others engaged
by them; and
WHEREAS, the Robert Larsen Partners, Inc. (Developer) has
expressed interest in redeveloping that part of the Project Area
generally bounded by the extension of Girard Avenue South on the
west, Lyndale Avenue South on the east, West 77th Street on the
north, and Interstate 494 on the south (the Redevelopment Area");
and
WHEREAS, Developer has presented to the HRA a preliminary
proposal for development of the Redevelopment Area; and
WHEREAS, the evaluation and formulation of the detailed
requirements necessary for the proposed redevelopment
necessitates the expenditure of substantial time and resources in
advance of submission of a redevelopment proposal by Developer,
its evaluation by the City and HRA, and consideration of a
redevelopment agreement between the City, HRA and Developer; and
WHEREAS, an Agreement is an appropriate document in which to
establish the terms and bases upon which the HRA and Developer
shall cooperate in determining the feasibility of the preliminary
proposal.
NOW, THEREFORE, BE IT RESOLVED by the Housing and
Redevelopment Authority in and for the City of Richfield,
Minnesota, as follows:
1. The Agreement identified as Attachment A is herby approved.
• 2. The Chairman and Executive Director are authorized and
directed to execute the Agreement.
3. The Executive Director is directed to present the Agreement to
the City Council with a request from the HRA that it be
approved.
Adopted by the Housing and Redevelopment Authority in and
for the City of Richfield, Minnesota this 20th day of November,
1989.
Thomas E. Harms
Chairperson
Attest:
• Joan Helmberger
Secretary
C89-4-HRALTR-RLP
*/-1?/
9 AGREEMENT
11/14/89
This Agreement is made as of the day of , 1989, by
and between the City of Richfield, a Minnesota municipal corporation ("City"), the
Housing and Redevelopment Authority in and for the City of Richfield, a public
body corporate and politic ("HRA"), each having an address of 6700 Portland
Avenue South, Richfield, Minnesota, and Robert Larsen Partners, Inc., a Minnesota
corporation , Suite 4159 730
Second Avenue South, Minneapolis, Minnesota 55402 ("Developer").
RECITALS
The City and HRA have established the Interstate-Lyndale-Nicollet
Redevelopment Project Area ("Project Area") under the authority of Minnesota
Statutes, Chapter 469 (the "Act"), and have established a Redevelopment Tax
Increment Financing District ("TIF District") and adopted a Financing Plan ("TIF
Plan") for the TIF District to facilitate the financing of public development and
redevelopment costs in the Project Area.
The City and HRA deem 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 Interstate-Lyndale-Nicollet Redevelopment Project
Plan and in accordance with the TIF Plan adopted by the City, on November 12,
• 1985, and HRA on October 21, 1985, following extensive study and preliminary
work conducted by the City and HRA and others engaged by them.
Developer has expressed interest in redeveloping that part of the Project
Area generally bounded by the extension of Girard Avenue South on the west,
Lyndale Avenue South on the east, West 77th Street on the north, and Interstate
494 on the south (the "Redevelopment Area") shown on the attached Exhibit A
(Redevelopment Area).
Developer has presented to the staff of the City and HRA a preliminary
proposal for development of the Redevelopment Area. As further indication of
Developer's interest, Developer has undertaken a traffic study and appraisals
necessary for evaluation of the suitability and feasibility of the redevelopment by
the City, HRA and Developer .
Evaluation and formulation of the detailed requirements necessary for the
proposed redevelopment necessitates the expenditure of substantial time and
resources in advance of submission of a redevelopment proposal by Developer, its
evaluation by the City and HRA, and consideration of a redevelopment agreement
between the City, HRA and Developer. Developer is not willing to commit such
substantial time and resources unless Developer has assurance that at the same
time the City and HRA are not and will not be negotiating with others for the
redevelopment of the Redevelopment Area. The City and HRA believe that the
giving of such assurances is reasonable and appropriate to encourage Developer to
evaluate, formulate and present its proposal or proposals, reserving however, their
full governmental discretion to accept or reject such proposal or proposals if and
40 when made by Developer, upon their determination whether or not such proposal or
proposals are in the public interest.
It is the intention of the City, HRA and Developer that this Agreement shall
• set forth the terms and bases upon which the City and. HRA shall provide guidance
to the Developer of the features required for a proposal or proposals to be
acceptable to the City and HRA, and for the City, HRA and Developer to
cooperate in determining the feasibility and best means for formulating and
financing the public and private elements necessary for completion of
redevelopment of the Redevelopment Area.
AGREEMENTS
Therefore, in consideration of their mutual undertakings as set forth herein,
the parties covenant and agree as follows:
Section 1. Developer shall continue in the evaluation and preparation of a
proposal or proposals for private redevelopment in the Development Area,
including, among other things the following:
a. The obtaining of a traffic study with respect to the public
streets in and about the Redevelopment Area. Developer shall pay the cost
of such traffic study, subject only to reimbursement as a development cost
or as otherwise hereinafter provided. The traffic study shall be furnished to
the HRA and City.
b. Developer has obtained preliminary appraisals as may be
determined necessary for the purpose of consideration of the feasibility of
the public and private improvements to the Redevelopment Area.
• c. In cooperation with the City and HRA, prepare further
refinements of the plan or plans for public and private improvements in the
Redevelopment Area, including the economic feasibility of such
improvements, preliminary design and construction considerations, and
preliminary financing proposals. Such preparations shall all have been done
not later than February 28, 1990.
d. Conduct, as Developer deems appropriate, presentations to the
owners of property in the Redevelopment Area and adjoining areas with
respect to proposals for the public and private improvements in the
Redevelopment Area. Such presentations shall all have been conducted not
later than December 31, 1989.
e. In good faith and cooperation with the City and HRA, proceed
with such other work as may be necessary or desirable toward the
evaluation, preparation and presentation of a detailed proposal for
development of the Redevelopment Area, including all public and private
improvements anticipated to be made therein and thereabout. It is
anticipated that the ultimate proposal or proposals shall include scheduling
or phasing of the public or private improvements, scheduling and
arrangements for the obtaining of all necessary governmental approvals,
public and/or private acquisition of the property in the Redevelopment
Area, design, construction and financing arrangements, and other matters
involved with the completion of a cooperative public-private redevelopment
project.
r 1
U
f. Developer will present evidence reasonably required by the
City and HRA to properly evaluate the Developer's financial condition,
• including the financial condition of its guarantors, willingness of lenders to
finance, experience in development activities of the sort contemplated, and
all such other information as the City and HRA may reasonably conclude as
necessary to determine the ability of Developer to carry out the proposed
development. All such information shall be provided, in confidence, to the
attorneys for the City and the HRA; and shall be made available to the City
and HRA with the objective of protecting the confidentiality of such
information. The City and HRA agree that, to the extent permitted by law,
they will not publicly disclose such information absent the written consent
of Developer.
g. Developer shall submit to the City and HRA, not later than
January 31, 1990, evidence of preleasing activities, including Developer's
plan for securing tenants within the Redevelopment Area.
h. In cooperation with the City and HRA, the Developer will be
prepared to present to the City and the HRA at their meetings in March,
1990 a list of proposed negotiating principles. Such negotiating principles
will, if approved, serve as the basis for negotiation of the Development
Agreement to be presented to the City and HRA at their meetings in April,
1990.
L Developer shall inform the HRA staff at least monthly
concerning Developer's progress in all of the matters described in this
Section 1.
• Section 2. Developer acknowledges that the City and HRA will be
expending considerable staff and consulting time in evaluating Developer's
proposals and taking other actions necessary to facilitate development.
Consequently, Developer agrees to pay, as consideration for the City and HRA's
undertakings hereunder $30,000. Such payment to be made upon the execution of
this Agreement. No part of such payment shall be refundable to Developer.
Section 3. City and HRA each agree to cooperate with the Developer in
its work toward the preparation of a proposal or proposals of the Redevelopment
Area, including among other things the following:
a. City and HRA each agree that for the term of this Agreement
and until this Agreement is terminated as hereinafter provided, they shall
not solicit or negotiate with any other person or firm for the presentation to
or acceptance by the City and HRA of a redevelopment proposal for the
Redevelopment Area by such other person or firm.
b. City and HRA shall cooperate with the Developer in the
completion of the aforementioned traffic study and preliminary acquisition
appraisals and in the completion by Developer of such other work as may be
required for the preparation of a proposal or proposals for the
Redevelopment Area. Except as disclosed by Developer in public
presentations or otherwise released by Developer for publication, City and
HRA agree that to the extent they are permitted to do so by state law, they
L'
3
• will retain in confidence and not cause or permit any other person to
receive, use or publish the traffic study, appraisals, proposals or other work
or materials prepared or presented by Developer or persons engaged by
them.
C. In furtherance of the Redevelopment Plan, the City and HRA
shall not during the term of this Agreement and until such time as this
Agreement is terminated as hereinafter provided, approve or make any
changes or improvements, public or private, in the Redevelopment Area
which are inconsistent with or obstruct the overall redevelopment of the
Redevelopment Area in accordance with the Redevelopment Plan; provided,
however, that nothing in this paragraph or in this Agreement shall be
deemed to preclude the City or HRA from (i) making Improvements within
the Redevelopment Area necessary to preserve the TIF District, (ii)
conserving or maintaining existing public improvements or (iii) considering
and approving any proper request from the owner or occupier of land within
the Redevelopment Area concerning the use or improvement of such land.
d. The City and HRA will review from time to time the proposal
or proposals of Developer and, if requested, notify Developer of such
features thereof which are expected to be acceptable or unacceptable in a
final proposal or proposals for redevelopment. Any such notification of
expected acceptability shall not, however, prevent the City or HRA from
determining such feature to be unacceptable in the final proposal.
e. The City and HRA will, to the extent such have been
formulated, provide to Developer the preliminary requirements and plans of
the City and HRA for public improvements, and also the City and HRA
requirements for private improvements in the Redevelopment Area and
their integration with the public improvements. The City and HRA reserve
the right to modify or alter such requirements from time to time.
f. The City and HRA will provide to Developer information
possessed by the City or HRA as to the financing of the public
improvements, and of all forms of public financing which the City is willing
to consider utilizing, with respect to acquisition of the property in the
Redevelopment Area, completion of the public improvements, and as
financing to the Developer in the making of private improvements in the
Redevelopment Area.
g. The City and HRA shall in good faith proceed with all
activities which they believe to be appropriate for cooperation review and
evaluation of the proposal or proposals from time to time provided by the
Developer including the matters described in Section 1, paragraphs c and h
above, and for the final preparation and execution by and among the City,
HRA and Developer of a Development Agreement for the Redevelopment
Area.
h. The City and HRA agree that they are willing to consider the
following-
0
4
i) The use of tax increment to provide land writedown and other
forms of assistance for the development.
ii) The use of tax increment bond proceeds to provide such
assistance.
iii) The exclusion of taxable parcels within the Redevelopment as
contributors to fiscal disparities.
iv) The use of eminent domain to acquire parcels within the
Development Area.
It is understood and agreed, however, that any such expression of
willingness to_consider shall not be deemed to obligate either the HRA or
City to ultimately make the decision under consideration.
i. The HRA and City also agree to undertake, to the extent they
shall deem appropriate, modifications to the tax increment financing plan
for the district, and to inform the Developer of progress in that regard not
later than December 1, 1989.
Section 4. It is understood and agreed that during the term of this
Agreement and until such time as this Agreement may be terminated by the parties
hereto, the City, HRA and Developer each shall in good faith do all such things and
take all such actions as may be appropriate toward the ultimate goal of execution
of a Development Agreement among them with respect to the Redevelopment
Area. It is understood, however, that nothing in this Agreement shall be deemed to
require any party to approve and execute a Development Agreement if any such
party, in its discretion, determines that it would not be in its best interest to do so.
Section 5. City and HRA in good faith will give full consideration to any
proposal or proposals from Developer for development of the Redevelopment Area.
It is understood that City and HRA, by this Agreement, cannot contract away and
shall not be deemed to have contracted away any of their governmental discretion
with respect to the Development Area, including but not limited to questions of
rezoning, subdivision approval, environmental review, property acquisition,
construction of Public Improvements, incurring of indebtedness, handling or
settling of litigation regarding development rights within the Redevelopment Area,
approval and execution of a Development Agreement or any other matter.
Section 6. During the term of this Agreement, if City and/or HRA
receives a proposal for development of the Redevelopment Area, or of any part
thereof, consistent with the Redevelopment Plan from any person or entity not a
party to this Agreement and not the owner or occupant of land within the
Redevelopment Area ("Third Party Proposal"), City and/or HRA will promptly
notify Developer of receipt of such proposal and its contents. City and HRA agree
that during the term of this Agreement and until termination of this Agreement as
hereinafter provided, City and HRA will not act to approve the Third Party
Proposal. In consideration of the grant by City and HRA of certain exclusive
negotiation rights as set forth herein, Developer agrees to indemnify, defend and
hold City and HRA harmless from and against any claim, expense or damage
• resulting solely from the granting by City and HRA of the rights set forth in
Sections 3a and 6 of this Agreement.
5
Section 7. If during the term of this Agreement the City receives a
request or application from the owner or occupier of land within the
Redevelopment Area involving the use, construction, reconstruction or other
improvement of such land, it shall, promptly notify the Developer of such request
or application and shall proceed to consider such request or application in the
manner and to the extent required by law.
Section 8. The term of this Agreement is from the date hereof through
April 30, 1990, and thereafter until such time as any party hereto gives ninety (90)
days written notice of termination to the other parties.
Section 9. In advance of the termination date contained in Section 8 above,
this agreement may be terminated as follows:
a. By any party upon written notice to the other parties hereto
that one or more of the parties to whom notice is given has failed to, in
good faith, proceed with performance of its obligations hereunder; or
b. By the HRA or City giving written notice to Developer that
Developer has failed to timely perform any of the obligations described in
Section 1 of this Agreement.
C. By any party upon the giving written notice to the other
parties that the parties have reached an irresolvable impasse concerning the
nature or extent of the public or private development within the
Redevelopment Area, the terms to be included in the Development
• Agreement or the level or nature of financial assistance to be made
available to the Developer.
Termination pursuant to this Section 9 shall be effective on the 90th day
following the date of giving of such notice unless the party claimed to be in default
of its obligation hereunder (or in the event of an impasse, all parties) cures such
default (or impasse) on or before the expiration of such 90-day period and provides
evidence of cure by such time.
If the City or HRA default in their obligations under this Section 9, upon
termination of this Agreement by Developer in the manner set forth above, the
City and HRA agree that the defaulting party shall reimburse Developer the costs
incurred by Developer for the aforementioned traffic study and appraisals, but not
in excess of $15,000 in the aggregate, and such other costs and expenses as are
incurred by the Developer in reliance upon specific authorization from time-to-
time given by the City and HRA of the incurrence of expenses with agreement of
reimbursement by the City and HRA in the event of default. Upon such
reimbursement, all studies, reports and appraisals for which reimbursement is made
shall become the property of the City and HRA and may be used for whatever
purposes they deem appropriate. This Agreement shall also terminate and be of no
further force or effect upon the date that the parties have all executed a
Development Agreement.
Section 10. Any notices required or permitted hereunder to be given by
any party to the other parties hereto shall be in writing personally delivered or
. mailed to the other parties at their addresses as set forth hereinabove, or such
6
-/// / ?'- /6
other address as is given by written notice in accordance herewith, and any notice
• shall be effective upon the earlier of being personally delivered, or at the time of
such notice duly addressed being deposited in the United States mail with postage
prepaid, by certified or registered mail, return receipt requested.
Section 11. This Agreement is independent of any other Agreement
between the parties.
Section 12. Any rights or privileges conferred upon the Developer by the
provisions of this Agreement shall not be assignable to any other party, except to a
partnership organized for the purposes hereof by Robert M. Larsen and of which
Robert M. Larsen is a general partner.
IN TESTIMONY WHEREOF, the parties hereto have set their hands as of the
day and year first above written.
CITY OF RICHFIELD
•
•
By
Its City Manager
By
Its Mayor
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF RICHFIELD
By
Its Executive Director
By
Its Commission Chairman
ROBERT LARSEN PARTNERS, INC.
By
Its
By
Its
7
•
STATE OF MINNESOTA )
ss.
COUNTY OF )
The foregoing instrument was acknowledge before me this day of
, 1989, by and ,
the City Manager and Mayor of the City of Richfield, Minnesota, a municipal
corporation under the laws of the state of Minnesota, on behalf of the City.
By
Notary Public
•
STATE OF MINNESOTA )
ss
COUNTY OF )
The foregoing instrument was acknowledge before me this day of
, 1989, by and ,
the Executive Director and Commission Chairman of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota, a public body
politic and corporate, under the laws of the state of Minnesota, on behalf of the
HRA.
Notary Public
STATE OF MINNESOTA )
ss
COUNTY OF
The foregoing instrument was acknowledge before me this day of
1989, by and ,
the and of Robert Larsen Partners, Inc., a
Minnesota corporation under the laws of the state of Minnesota, on behalf of the
corporation.
Notary Public
LJ
This instrument drafted by:
Holmes & Graven, Chartered
470 Pillsbury Center
Minneapolis, MN 55402
(612) 337-9300
RC125-6
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