12-09-85 agenda~-
CITY OF RICHFIELD, MINNESOTA
Office of City Manager
C t_t,~ o . ~ 9 8
HRA Letter No. 67
gen a ecem er 1985
The Honorable Mayor Housing and Redevelopment
and Authority Commissioners
Members of the City Council City of Richfield
City of Richfield
Subject: Adoption of Resolution Approving Contract For
Private Development, PALSCO, Inc., ILN Project
Council-Members and Commissioners:
At the December 9, 1985, meeting, the HRA and City Council
will be requested to approve a development contract with PALSCO,
Incorporated. It is the intent of staff and the developer to
have a copy of the executed contract for the meeting on December
~9, 1985.
The basic development concept is as follows. PALSCO, Inc.
would be purchasing the existing Colonial Lodge Motel property
from Mr.' Tom Price. They. also have an agreement to purchase the
print shop facility at the corner of 77th Street and Lyndale
Avenue. Additional site area would be provided by MNDOT
abandoning the adjoining portion of-the 78th Street frontage
road. MNDOT's need for their easement would cease and the land
would revert to the Colonial Lodge property.- The site would
then approximate 2.~4 acres. On this parcel PALSCO, Inc., a
franchisee, would construct a Hampton Inn Motel.
There are~two alternative development plans. A final
determination of the specific development would be the result of
negotiations between PALSCO and Hampton Inn. Under one
alternative, a five story structure containing 135 motel rooms
and a freestanding 150 seat "family" type restaurant would be
constructed. The second alternative would be the construction
of only a four story motel with 1~,6 rooms. Site plans and an
elevation are attached to the development Contract.
Construction would be initiated in the spring of 1986 with
completion scheduled for early 1987.
Under the terms of the Contract, the developer agrees to the
following:
To construct either the 135 room motel and restaurant, or,
the 1~6 room motel _
Construction completion, 1/2/88 with a minimum Assessor's
Estimated Market Value (EMV) of $2,060,000
A minimum EMV of $2,660,000 1/2/89
U OC
A minimum EMV of $3,402,000 1/2/90 continuing for the
life of the tax increment bonds
To execute an assessment agreement with the above values
and dates
To purchase the print shop at the corner of 77th Street
and Lyndale Avenue
To sell to the City easements adjacent to Lyndale Avenue
and 77th Street (This would permit the city to install
the Phase I roadway improvements). The preliminary cost
estimate is $114,000.
The HRA and City would agree to the following:
To use their "best efforts" to encourage MNDOT to
abandon the 78th Street frontage road and easement
adjacent to the subject parcel
To not unreasonably withhold or-deny. the necessary
permits and licenses to permit construction
To use the "best efforts" of~the City to make tax exempt
IDBR financing available for the development
To pay $11.62 per square foot for the easements for right-of-
way improvements or approximately $114,132 with the final
amount to be determined by the right-of-way design
To issue a Certificate of Completion when the construction
is completed.
On November 26, 1985, the Planning Commission approved the
preliminary PUA Plan, the rezoning and special use permit. The
fifth floor would be needed if a restaurant is constructed as a
part of the project. Otherwise, the motel will have four
floors. A variance is needed because the total floor area of
the hotel and the restaurant exceed the maximum .floor area
allowed by the zoning ordinance. The Hearing Examiner has
denied the variance request. The denial is being appealed to
the City Council as part of another agenda item. The approval
of this Contract does not prevent the City from acting
independently on the matters related to zoning. The .Contract
only prohibits the unreasonable withholding or denial of these
permits.
It is recommended that the HRA and City Council adopt the
attached appropriate resolut-ions approving the Contract For
Private Development with PALSCO, Inc.
JGC:sb
pity Manag
~~
HRA RESOLUTION N0.
RESOLUTION APPROVING
CONTRACT FOR PRIVATE DEVELOPMENT
WITH PALSCO, INCORPORATED
WHEREAS, The HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF RICHFIELD, MINNESOTA (HRA) has received a proposed
document entitled "Contract for Private Development" (Contract),
which Contract is on file in the office of the .City Clerk for
inspection; and
WHEREAS, the HRA has reviewed-the Contract and determines
that such is in the best interests of~the City and serves the
health, safety and general welfare of the community.
NOW, THEREFORE, BE IT RESOLVED BY the Housing and'
Redevelopment Authority that the Contract is hereby approved and
the Chairman and Executive Director are hereby authorized. and
directed to execute the same on behalf of The Housing and
Redevelopment Authority.
Passed by the Housing and Redevelopment Authority of
Richfield, Minnesota this 9th day of December, 1985.
Thomas E. Harms, Chairman
ATTEST:
Joan Helmberger, Secretary
~=y
RESOLUTION N0.
RESOLUTION APPROVING
CONTRACT FOR PRIVATE DEVELOPMENT
WITH PALSCO, INCORPORATED
WHEREAS, the City of Richfield has received a proposed
document entitled "Contract For Private Development" (Contract),,
which is on file in the office of the City Clerk for inspection;.
and
WHEREAS, the City Council has reviewed the Contract and
determines that such is in the best interests of the City and
service the health, safety and general welfare of the community.
NOW, THEREFORE, BE IT RESOLVED BY City Council of the City
of Richfield that the Contract is hereby approved .and the Mayor
and City Manager are hereby authorized and directed to execute
the same on behalf of the City of Richfield.
Passed by the City Council of the City of Richfield,
Minnesota this 9th day of December, 1985.
John Hamilton, Mayor
ATTEST:
f
Thomas P. Ferber,-.City Clerk