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012808 EDA ~ CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North January 28, 2008 EDA Meeting will commence upon adjournment of the City Council Meeting President Martin Opem Sr. Commissioner Andy Boffe Commissioner Karen Nolte Commissioner Steve Sommer Commissioner Daniel Stauner 1. Call to order 2. Roll call 3. Approval of regular meeting minutes of December 10, 2007 4. Resolution approving interim agreement with Ryan Companies US, Inc., for the further discussion and investigation of the potential redevelopment of City Center (improvement project no. 842) ::J. Resolution approv~ng first amendment to interim agreement with Insignia Development for the Bass Lake Road Apartments redevelopment project (improvement project no. 795) 6. Resolution authorizing signatures for certificate of completion and release of forfeiture and also a release of Planned Unit Development Conditional Use Permit Site Improvement Agreement related to the Village on Quebec project by Data Sales, Inc. at 7500 -7562 42nd Avenue North (improvement project no. 740) 7. Adjournment EDA Minutes Regular Meeting CALL TO ORDER ROLL CALL APPROVE MINUTES TIF DISTRICTS Item 4 EDA Meeting Page 1 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 December 10, 2007 City Hall President Opem called the meeting of the Economic Development Authority to order at 7:41 p.m. Present: Martin Opem Sr., President Andy Hoffe, Commissioner Karen Nolte, Commissioner Daniel Stauner, Commissioner Absent: Steve Sommer, Commissioner Staff Present: Kirk McDonald, City Manager Sherry Draper, Director of Administration Shari French, Director of Parks & Recreation Curtis Jacobsen, Community Development Specialist Guy Johnson, Director of Public Works Valerie Leone, City Clerk Gary Link, Director of Police Julie Linnihan, Finance Manager Jason Quisberg, City Engineer Steve Sondrall, City Attorney Motion was made by Commissioner Nolte, seconded by Commissioner Stauner, to approve the Regular Meeting Minutes of November 26, 2007. Voting in favor: Opem, Hoffe, Nolte, Stauner; Voting against: None; Absent: Sommer; Abstained: None. Motion carried. President Opem introduced for discussion Item 4, Public HearingIResolution modifying the restated redevelopment plan for redevelopment project no. 1 and the tax increment financing plans for tax increment financing districts nos. 85-1, 85-2 and 86-1. Mr. Curtis Jacobsen, community development specialist, explained that the city's financial consultant, Krass Monroe, has recommended modifications to TIF plans as required by state law so that the budgets for the TIF districts are in line with the actual operation of the TIF districts. He illustrated the affected TIF districts and stated TIF District 85-2 comprises the Volunteers of America Apartments, TIF District 85-2 is the 42nd A venue area, and TIF District 85-1 is the Emerald Point Apartments. Mr. Jim Casserly, Krass Monroe, was recognized. He stated it is not unusual to periodically modify TIF plans. He stated the revenues and expenses of TIF districts 85-1, 85-2, and 86-1 are not in balance, and modifications will enable December 10, 2007 EDA RESOLUTION 07-04 Item 4 ADJOURNMENT EDA Meeting Page 2 better tracking of the funds by Krass Monroe and the city. Commissioner Nolte introduced the following resolution and moved its adoption: "RESOLUTION MODIFYING THE RESTATED REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO.1 AND THE TAX INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTRICTS NOS. 85-1, 85-2 AND 86-1./1 The motion for the adoption of the foregoing resolution was seconded by Commissioner Hoffe, and upon vote being taken thereon, the following voted in favor thereof: Opem, Hoffe, Nolte, Stauner; and the following voted against the same: None; Abstained: None; Absent: Sommer; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. Motion was made by Commissioner Stauner, seconded by Commissioner Nolte, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 7:44 p.m. Respectfully submitted, ~~ Valerie Leone, City Clerk December 10, 2007 EDA Request for Action Originating Department Approved for Agenda Agenda Section Community Development EDA Item No. 4 By: Curtis Jacobsen, CD Specialist By: Kirk McDonald, City Manager Resolution Approving Interim Agreement with Ryan Companies US, Ine., for the further discussion and investio-ation of the otential redevelo ment of Ci Center ( ro'ect no. 842) Requested Action Staff requests the EDA approve the resolution with Ryan Companies US, Inc., for further discussion and investigation of the potential redevelopment of City Center. Policy/Past Practice It is the past practice of EDA to enter into interim agreements with developers during the discussion and investigation of the potential for redevelopment of sites within the city. The interim agreement will outline preliminary steps and set out a schedule of milestones for both parties to achieve. Background Ryan Companies approached the city during a work session to propose a potential redevelopment in the city center area. A redevelopment that may potentially include a Super Target. At the December 10 Council meeting staff and Ryan Companies requested authority for staff to negotiate an interim agreement vvith Ryan. Representatives of Ryan and the city's redevelopment advisor (Krass Monroe) will be in attendance at the meeting to discuss the details of the agreement. Some of the highlights of the agreement include: @ Authority is willing to negotiate exclusively with the Redeveloper Ul1til August 11, 2008. @ The Authority agrees to cooperate with the Redeveloper in the Redeveloper's undertakings and @ Agrees that during the term of this Agreement the Authority will not negotiate with any third party in connection with redevelo ment of the site. Motion by .~. /' 1 \ \ -'I --1-;1/1 /)/7 i!, jr--- \" ',- /~{ I /'1../'( ~/ ",0' j/ {/ :-// Second by To: ~o/ I:\RFA \PLANNING\PLANNING\Q & R - Interim Ao-reement with R 'an Co. doc Request for Action Page 2 January 28,2008 G By February 15, 2008, the Authority and its redevelopment counsel will determine whether the parcels in Phase 1 qualify for inclusion in a new redevelopment TIP district. G By March 24, 2008, the Redeveloper will develop a preliminary concept plan and will provide information to perform a TIP revenue analysis. G By April 21, 2008, the Authority's redevelopment counsel will determine the financial feasibility of Phases lA and lB. G April 28, 2008, the Redeveloper and city staff will present the preliminary concept and their findings as to financial feasibility to the Board. @ If the Authority elects the Redeveloper will host a community open house for the plan by June 14, 2008. e The Authority shall be responsible for fees and costs of its planning and engineering consultants. G The Redeveloper shall be responsible for fees and costs of its counsel and consultants, cost of any additional market studies, and one-half of the fees incurred by the Authorities redevelopment counsel relating to TIF district qualification, creation and feasibility analysis. G The Redeveloper shall make a deposit of $5,000.00. G The term of this agreement shall terminate on August 11, 2008, unless terminated sooner. Funding The agreement lays out a cost sharing agreement that requires a $5,000.00 deposit by Ryan upon the execution of the agreement. Funding for the EDA share of the costs will come from the EDA reserves set aside for redevelopment purposes. Attachment(s) @ Resolution @ Interim Agreement City of New Hope EDA Resolution 2008-_ Resolution approving interim agreement with Ryan Companies US, Inc., and authorizing signatures WHEREAS, Ryan Companies US, Inc., and city staff have been in discussions over the last few months regarding the possible redevelopment of City Center; and WHEREAS, on November 26, 2007, Ryan Companies made a presentation to the City COUl1cil during a work session; and WHEREAS, on December 10, 2007, the City Council authorized staff to begin negotiating an interim agreement with Ryan Companies; and WHEREAS, Ryan Companies and staff have reached tentative agreement on the details of said interim agreement. NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority in and for the city of New Hope, Minnesota as follows: 1. That said agreement is acceptable in its scope and timelines. 2. The President and the Executive Director of the Economic Development Authority in and for the city of New Hope are hereby authorized and directed to enter into said agreement. Adopted by the Economic Development Authority of the city of New Hope, Hennepin COUl1ty, Minnesota, this 28th day of January 2008. President Attest: Executive Director 1-14-08 INTERIM AGREEMENT This INTERIM AGREEMENT entered into effective the 28th day of January, 2008, by and between the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority") and Ryan Companies US, Inc., a Minnesota corporation (the "Redeveloper"). WHEREAS, the City Center site (the "Site") consists of approximately 51.7 acres of land, mainly surrounding the intersection of Winnetka and 42nd Avenues with 31 acres in the northwest quadrant, 4.4 acres in the northeast quadrant, 15 plus acres in the southeast quadrant, one half acre on the southwest quadrant and an additional 1.1 acres in the northwest quadrant of 42nd and Xylon Avenues; and WHEREAS, the Authority desires for the Site to be redeveloped primarily as a commercial site with a smaller segment of mixed use or multi-family residential development; and WHEREAS, the Redeveloper is proposing a redevelopment (the "Project") for the Site and has requested that the Authority negotiate exclusively with the Redeveloper while the Proj ect is being studied. WHEREAS, the Redeveloper has initially suggested a first phase ("Phase 1") that includes approximately 32.36 acres located in the north\vest, northeast and southeast quadrants of Winnetka and 42nd Avenues; and WHEREAS, the Authority is willing to negotiate exclusively with the Redeveloper until August 11,2008, provided that deadlines for celiain milestones desClibed below are met. NOW, THEREFORE, in consideration of the premises and mutual obligations of the paliies contained herein, each of them does hereby agree as follows: 1. Interim Nature of Agreement. The Authority and the Redeveloper agree that this Agreement is intended to be preliminary in nature. Before the Authority and the Redeveloper can make a decision on whether to proceed with the Project, it \vill be necessary to assemble and consider infonnation relating to the economics, site assembly, phasing, environmental remediation and other aspects of the Proj ect. The purpose of this Agreement is to allow the Redeveloper an opportunity to assemble such information, to prepare a preliminary concept plan and to negotiate with the Authority conceming the approval of a tenn sheet (the "Tem1 Sheet") with a view to eventual execution of a contract for private redevelopment (the "Redevelopment Agreement") which will set forth the rights and responsibilities of the AuthOlity and the Redeveloper with respect to the Project. 2. Agreements of the Authoritv. (a) The Authority agrees to cooperate with the Redeveloper in the Redeveloper's undertakings and agrees that during the term of this Agreement the Authority will not negotiate with any third party in connection with redevelopment of the Site. (b) The Authority will negotiate with the Redeveloper in good faith, including examining options for acquisition, relocation, public improvements, demolition, infrastructure improvements, and the creation of a tax increment financing ("TIP") district or districts for the Project area. (c) The Authority will provide to the Redeveloper all of the following which the Authority has in its possession and which relate to the Site: market analyses, blight reports, surveys, soil, engineering, and geotechnical reports, previous concept plans and estimates of environmental remediation and soils correction costs. 3. Undertakings of the Parties. (a) By February 15, 2008, the AuthOlity and its redevelopment counsel will determine, on a preliminary basis, whether the parcels in Phase 1 qualify for inclusion in a new redevelopment TIP district and will share their findings with the Redeveloper. (b) On an ongoing basis, the Redeveloper will review such findings and the repOlis and other matelials provided by the Authority on an as-needed basis. The Redeveloper and Authority will identify additional issues and concems. (c) By March 24, 2008, the Redeveloper will, in consultation with the Authority and the City, develop a preliminary concept plan. The Redeveloper will provide infom1ation requested by the Authority's redevelopment counsel in order to perfom1 a TIP revenue analysis, including the projected product types, taxable value and completion dates of the new or renovated buildings to be constructed in Phase 1. (d) By April 21, 2008, the Authority's redevelopment counsel will complete its analysis of projected TIF revenues from Phases lA and IB and the Redeveloper and the AuthOlity will jointly deten11ine whether either or both of Phases lA and IB are financially feasible, given the amount of TIP or other Authority assistance potentially available to the Project. ( e) On April 28, 2008, the Redeveloper and City staff will present the preliminary concept plan and their findings as to financial feasibility to the Board of the AuthOlity. 2 (f) If the Authority so elects following the presentation on April 28, then by June 14, 2008, the Redeveloper shall host a community open house with the assistance of City staff to present the preliminary concept plan for Phase 1 and solicit feedback from City residents. Before the open house, neither the Authority nor the Redeveloper will make any community presentation relating to the Project. (g) The parties will then determine a timetable for negotiation and execution of a Contract for Private Redevelopment for Phase 1. 4. Responsibilitv for Costs and Redeveloper Deposit. (a) During the term of this Agreement, the Authority or the City shall be responsible for fees and costs of its planning and engineering consultants and the City Attorney (except as set forth in subparagraph (b)(3) below). (b) The Redeveloper shall be responsible for: (1) fees and costs of its counsel and consultants, (2) the cost of any additional market studies, environmental analyses, soil borings, or surveys performed by the Redeveloper, and (3) one-half (112) of the fees incurred after the date of this Agreement by the Authority's redevelopment counsel relating to TIF district qualification and creation, financial feasibility analysis of the Project and drafting and negotiation of the Redevelopment Agreement and related documents. (c) Upon execution of this Agreement, the Redeveloper shall make a deposit of S5,000.00 to be applied by the Authority to reimburse costs and fees incuned by the Authority for \vhich the Redeveloper is responsible under Paragraph 4(b)(3). The Redeveloper shall replenish this deposit when the balance falls below SI,OOO.OO upon request by the Authority. (d) In accordance with City policy, the Redeveloper will pay all nonnal and customary City fees associated with the plan review and approval process. 5. Term of Agreement. This Agreement shall be binding upon the parties until August 11, 2008, unless ternlinated sooner by the Authority for the Redeveloper's failure to timely comply with any of the deadlines set forth in Paragraph 3 or by mutual agreement of the pmiies. 6. City and Authoritv Use of Work Product. If the Redeveloper decides not to proceed with redevelopment of the Site, the Redeveloper shall make available at no cost to the City and the Authority for their unrestricted use all available non-proplietary \vork product, including market analyses, soil and engineering reports, geotechnical repolis, construction budgets and other documentation produced specifically for the Site. ,., :) IN WITl\TESS WHEREOF, the parties have caused this Agreement to be duly executed in each of their names as of the date first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA By: President By: Executive Director RYAN COMPAl"JIES US, INC. By: Its: G:\\VPDATA\N\NEW HOPE\06\DOC.INTERIM AGREEMENT 1-14-08.DOC 4 EDA Request for Action Originating Department Approved for Agenda Agenda Section Community Development January 28,2008 EDA Item No. By: Curtis Jacobsen, CD Specialist By: Kirk McDonald, Executive Director 5 Resolution approving first amendment to interim agreement with Insignia Development for the Bass Lake Road A artments redevelo ment ro'ect (im rovement roject no. 795) Requested Action Staff requests that the Authority approve the first amendment to the interim agreement with Insignia Development and authorize signatures. A representative from Insignia \',vill be in attendance at the meeting, as Don Uram is Ul1able to attend. Policy/Past Practice It is a past practice of the Authority to amend agreements as may be necessary and appropriate based on the cirCUlnstances related to that particular agreement. Background On November 26, 2007, Don Uram from Insignia Development provided an update to the COUl1cil regarding the interim agreement and requested a one year extension for all timelines \'vithin the agreement. The COUl1cil discussed a one year and possibly a shorter six month extension or a contract contingency. The intent of a contingency vvould be to allm,v either party to withdraw from the agreement should it be in their best interest to do so. An amendment has been drafted which extends all timelines within the initial agreement by one year. This agreement also adds a contingency that will allow either or both sides to withdraw from the agreement upon 45 days notice. Attachments E> Resolution E> 1st Amendment to Interim Agreement E> Original Interim Agreement E> Excer ts from November 26 City COUl1cil minutes Motion by /-\ ( "~' 'i . /"1 '~'." " \ /0 /f}' /1"1:/ r "~fJJ-}i 1 / jfl.;. j ~,<l Second by To: I: \ RF A \ PLANNl1'\JG \ PLANNING \ Resolution a rovin 1st amendment to Insio-nia interim a o-reement 1-2S-0S.doc EDA Resolution 2008- Resolution approving first amendment to interim agreement with Insignia Development for the Bass Lake Road Apartments redevelopment project (improvement project no. 795) WHEREAS, the Economic Development Authority and Insignia Development entered into an Interim Agreement on May 14, 2007; and WHEREAS, the Interim Agreement has various specific dates for actions by the parties to the agreement; and WHEREAS, due to the housing market slowing and its projected recovery being months away I11.signia Development has requested a one year extension for all timelines within the agreement; and WHEREAS, there is no benefit to the City in proceeding with the timelines as outlined in the initial agreement NOW, THEREFORE, BE IT RESOLVED, by the Economic Development Authority in and for the City of New Hope, Minnesota as follows: 1. That all timelines within the I11terim Agreement between Insignia Development and the Economic Development Authority shall be extended by one year. 2. That I11signia Development shall have the right to withdraw from said agreement upon 45 days notice to the EDA. 3. That the EDA shall have the right to withdraw from said agreement upon 45 days notice to I11signia Development. Adopted by the Economic Development Authority of the city of Ne'N Hope, HelUlepin C01mty, Minnesota, this 28th day of January 2008. President Attest: Executive Director FIRST AMENDMENT INTERIM AGREEMENT This the First Amendment to the Interim Agreement by and betvveen the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the "Authority") and Insignia Development LLC, a :Minnesota limited liability company (the "Developer/l) entered into this 28th day of January, 2008. WHEREAS, the Authority and the Developer have entered into em Interim Agreement whereby they have agreed to negotiate exclusively vvith each other for a period of time toward the potential redevelopment of the Bass Lake Road Aparhnent site; and WHEREAS, due to a downturn in the housing market the Developer has asked that the Authority for a one year extension on all timelines in the Interim agreement; and WHEREAS, the Authority can see the benefits to both parties by extending the timeline that currently exists; and WHEREAS, the Authority desiTes to have a release clause included along with and extension of the basic agreement timeline. NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties contained herein, each of them does hereby agree as follows: 1. Extended Timeline. The Authority and the Developer agree to extend the timeline in the original Interim Agreement by one year for all items immmerate within the agreement. 2. Release of Obligations. The Authority and the Developer agree that should an opportUl1ity become apparent for either or both parties prior to the first revised submission date making it necessary to seek a release from theiT obligations within this agreement they will meet the following minimum requirements. (a) The Authority shall provide the Developer with 45 days advance notice regarding its termination of this agreement. (b) The Developer shall provide the Authority 45 days advance notice prior to tendering its \.vithdrawal from this agreement. First Amendment Interim Agreement January 28, 2008 Page 2 IN WITNESS WHEREOF, the parties have caused this Amendment to the Interim Agreement to be duly executed in each of their names as of the date first above written. ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF NEW HOPE, MINNESOTA By: President By: Executive Director INSIGNIA DEVELOPMENT, LLC By: Its: INTERIM AGREEMENT This INTERIM AGREEMENT entered into effective the 14th day of May, 2007, by and between the Economic Development Authority in and for the City of New Hope, Minnesota, a Minnesota public body corporate and politic (the" Authority/l) and Insignia Development LLC, a Minnesota limited liability company (the "Redeveloper"). WHEREAS, the Bass Lake Road Apartments site (the "Site") consists of approximately 3.6 acres of land with five 12-unit rental apartment buildings at 8400 and 8420 Bass Lake Road and 8401, 8411 and 8421 - 58th Avenue; and WHEREAS, the Redeveloper might determine to expand the redevelopment site to include the four single-family lots at 8400,8404,8408, and 8412 58th Avenue North; and WHEREAS, the Authority desires for the Site to be redeveloped as owner-occupied market- rate housing or mixed-use development; and WHEREAS, the Redeveloper is proposing a redevelopment (the "Project") for the Site and has requested that the Authority negotiate exclusively with the Redeveloper while the Project is being studied. WHEREAS, the Authority is vdlling to negotiate exclusively with the Redeveloper until October 1, 2008, provided that deadlines for certain milestones described below are met. NOW, THEREFORE, in consideration of the premises and mutual obligations of the parties contained herein, each of them does hereby agree as follows: 1. Interim Nature of Agreement. The Authority and the Redeveloper agree that this Agreement is intended to be preliminary in nature. Before the Authority and the Redeveloper can make a decision on 'ivhether to proceed with the Project, it will be necessary to assemble and consider information relating to the economics, site assembly, phasing, environmental remediation and other aspects of the Project. The purpose of this Agreement is to allow the Redeveloper an opportunity to assemble such information, to prepare a preliminary concept plan and to negotiate with the Authority concerning the approval of a term sheet (the "Term Sheet/l) "Yvith a view to eventual execution of a contract for private redevelopment (the "Redevelopment Agreement/l) which will set forth the rights and responsibilities of the Authority and the Redeveloper with respect to the Project. 2. Undertakings of the Authority. (a) The Authority agrees to cooperate with the Redeveloper in the Redeveloper's undertakings and agrees that during the term of this Agreement the Authority will not negotiate with any third party in connection with redevelopment of the Site. , (b) The Authority will negotiate with the Redeveloper in good faith the terms of the Redevelopment Agreement, which includes examining options for acquisition, tenant relocation, demolition, infrastructure improvements, and the creation of a tax increment financing district for the Site. (c) The Authority will provide to the Redeveloper all market analyses, blight reports, surveys and soil, engineering, and geotechnical reports that have been done for the Site, as well as previous concept plans and estimates of any environmental remediation and soils correction costs prepared by previous redeveloper candidates for the Site. (d) The Authority will begin negotiations with the current property owner in an attempt to acquire the Site. 3. Undertakings of the Redeveloper. (a) By December 1, 2007, the Redeveloper will review the reports and other materials from the Authority referenced above and will complete a market study for the project site. (b) By April 1, 2008, the Redeveloper will, in consultation with the Authority, the City and City residents, develop a preliminary concept plan. If the Redeveloper proposes to redevelop an area larger than the Site, the Redeveloper must indicate its ability to acquire the additional parcels voluntarily as evidenced by executed options or purchase agreements. (c) By June 1, 2008, the Redeveloper will also complete any additional environmental assessment the Redeveloper deems necessary to estimate the cost of any environmental remediation and soil corrections in order to construct the Project or will notify the Authority that no further testing 'will be required. (d) By August 1, 2008, the Redeveloper shall submit a construction pro forma, finished housing unit values and such other financial information as the Authority or its redevelopment consultants may request in order to assess the economic feasibility of the Project, the amount of Authority assistance to be provided to the project, and the price to be paid by the Redeveloper to the Authority for the Site. (e) By September 1, 2008, the Redeveloper shall: El Host a community open house in conjUl1ction with city staff to present project plans and solicit feedback from the neighborhood; and El Obtain Authority approval of a Term Sheet. (f) By October 1, 2008, the Redeveloper will have negotiated and obtained Authority approval of a Redevelopment Agreement. 2 (g) During the term of this Agreement, the Redeveloper shall also: m Present progress reports to the Authority or to City Council, if requested; and m If the Redeveloper determines that the Site is not economically feasible to redevelop, the Redeveloper shall deliver to the Authority for its unrestricted use at no cost to the Authority all work product, market analysis, architectural and engineering reports, construction budget, research materials, and other documentation produced for the Site. 4. Responsibility for Costs and Redeveloper Deposit. (a) During the term of this Agreement, the Authority or the City shall be responsible for fees and costs of its planning and engineering consultants and the City Attorney (except as set forth in subparagraphs (b)(3) and (4) below). (b) The Redeveloper shall be responsible for: (1) fees and costs of its cOUl1Sel and consultants, (2) the cost of any additional market studies, environmental analyses, soil borings, or surveys performed by the Redeveloper, (3) if the Redeveloper proposes to redevelop an area larger than the Site, the additional costs of property acquisition, resident relocation, demolition, blight analysis, surveys, and environmental testing for the additional parcel(s), as well as the cost of any required re- engineering of the infrastructure improvements described in subparagraph (a)(3) above (such costs may be eligible for reimbursement with tax increment, however), and (4) fees incurred after the date of Authority approval of this Agreement by the Authority's redevelopment counsel, Krass Momoe, P.A., for fu1ancial and feasibility analysis of the Redeveloper's project, drafting and negotiation of the Term Sheet and Redevelopment Agreement, and, with respect to any additional parcels to be acquired by the Redeveloper, review of blight analysis and review of qualification of such parcels for inclusion in the tax increment district. (c) Upon execution of this Agreement, the Redeveloper shall pay a non-refundable fee of $500.00 to the Authority. Upon the Redeveloper's submittal of the concept plan, the Redeveloper shall also make a deposit of $5,000.00 to be applied by the Authority to reimburse costs and fees incurred by the Authority for which the 3 Redeveloper is responsible under this Paragraph 5. The Redeveloper shall replenish this deposit when the balance falls below $tOOO.OO upon request by the Authority. (d) In accordance with City policy, the Redeveloper will pay all normal and customary City fees associated with the plan review and approval process. 5. Term of Agreement. This Agreement for exclusive negotiations shall be binding upon the parties until October 1, 2008, unless terminated sooner by the Authority for the Redeveloper's failure to timely comply with any of the deadlines set forth in Paragraph 3 or by mutual agreement of the parties. 6. City and Authority Use of Work Product. If the Redeveloper decides not to proceed with redevelopment of the Site, the Redeveloper shall make available at no cost to the City and the Authority for their Ulllestricted use all available non-proprietary work product, inclucUng market analyses, soil and engineering reports, geotechnical reports, infrastructure construction budgets, and other documentation produced specifically for the Site. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed in each of their names as of the date first above ivritten. ECONOMIC DEVELOPMENT AUTHORITY LN AND FOR THE CITY OF NEW HOPE, MINNESOTA By: By: INSIGNIA DEVELOPMENT LLC B .~QJ l~ C1\ '\ y. .W~r'----- Its: y('€&(&rrr 4 Excerpt from November 26,2007 City Council minutes IMP. PROJECT 795 Item 8.2 Mayor Opem introduced for discussion Item 8.2, Update from Insignia Development regarding the Bass Lake Road apartment site (improvement project no. 795). Mr. Kirk McDonald, city manager, stated Don Uram has been invited to the meeting to give an update regarding the potential redevelopment of the Bass Lake Road Apartments site. He stated the city entered into an interim agreement with Insignia Development on May 14, 2007. He stated Insignia is a very reputable company and staff is pleased they remain interested in the site. Mr. McDonald stated the terms of the interim agreement have several timelines identified, and the first deadline is the provision of a market study by December 1. He stated the developer submitted a letter addressing the current market conditions and requested a one-year extension of the timelines. Mr. McDonald reported that staff supports the one-year extension due to the current housing market ,md the fact that the city will not have to begin the RFP process again. Mr. McDonald reminded the COlmcil that the Bass Lake Road Aparhnent property acquisition ,.vill be discussed later this everung in a closed session. Mr. Don Uram, Insignia Development, was recognized. He pointed out the market conditions pose a challenge and it does not appear that conditions will improve in the next year. He acknowledged Insignia's continued interest in the site and asked for a one-year extension. He stated although a formal market Shldy was not Ul1dertaken he advised the COUl1cil that within the 13 cOlmty area, Insignia typically requests 9,000 building permits but this year the number was less than 5,000. Council Member StaUl1er asked whether Mr. Uram was still considering a high density development. NIt. Uram indicated they have not explored anything else and would still consider a multi-story high density housing project for the site. COlmcil Member Stalmer suggested granting a shorter extension as the city is locked into an exclusive negotiation contract. Council Member Nolte asked for a contingency or only a six month extension. Mayor Opem stated if the city received an offer by another developer, the city could ask Insignia to release the agreement. Mr. Steve Sondrall, city attorney, agreed that new terms could be negotiated. Mr. Uram acknowledged that he would support a contract contingency. He noted from a developer's standpoint he would not want to tie up the site. The Council agreed to a 90-day extension to enable Mr. Uram to meet with Mr. Sondrall to develop an interim agreement with a contingency clause. MOTION Item 8.2 Motion was made by Council Member Stalmer, seconded by COlU1cil Member Hoffe, to grant a 90-day extension and directing the city attorney to draft a new interim agreement with a contingency clause. All present voted in favor. Motion carried. EDA Request for Action Originating Department Approved for Agenda Agenda Section Community Development January 28, 2008 EDA Item No. 6 By: Kirk McDonald, City Manager Curtis Jacobsen, CD S ecialist B: Resolution authorizing signatures for Certificate of Completion and Release of Forfeiture and also a Release of Planned Unit Development Conditional Use Permit Site Improvement Agreement related to the Village on Quebec project by Data Sales, Inc. at 7500 -7562 42nd Avenue North (Improvement Project 740) Requested Action The EDA is requested to approve the resolution authorizing signatures on the Certificate of Completion and Release of Forfeiture and also the Release of Planned Unit Development Conditional Use Permit Site Improvement Agreement related to the Village on Quebec project at 7500-7562 42nd Avenue North a Data Sales, Ine. project. Policy/Past Practice It is the past practice of the EDA to authorize signatures on the Certificate of Completion and Release of Forfeiture when the developer has completed the minimum improvements and has been issued a Certificate of Occupancy for any individual residential Ulut in that building. TIus Certificate of Completion and Release of Forfeiture is similar to the one approved by the Council for Emerald Pointe Apartments on June 25, 2007. Background The EDA entered into a Purchase and Development Agreement with Q Village, LLC (Manley Development) on June 26, 2006, for the redevelopment of the site at 7500 42nd Avenue North or commonly referred to as 42nd and Quebec. The project consisted of two buildings \vith approximately 28,000 square feet. This project brings to a conclusion many years of work to see the clean up and redevelopment of a contaminated site. This redevelopment also returns this parcel of property to the tax rolls after a lengthy absence. The ownershi Second by Motion by To: /l)("" / } /5 C<) /C{ 0') I:\RFA \PLAJ\JNlNG\PLANNLNG\Plannino-\Q & R - Villao-e on Quebec Cert of Com letion 1-28-08.doc Request for Action January 28,2008 Page 2 simed and Data Sales of Eagan has assumed the majority interest in the development. Their banker, Wells F~go has requested they obtain a Certificate of Compliance. The Contract for Pri~ate Redev~lopment specifies that the Certificate of Completion is to be issued promptly after substantial completion at the request of the developer, as outlined in the document excerpt below: 21. Post-Closing Construction/Revesting of Title. The Buyer agrees and co'venants that t.1.e Buyer "vill construct, or cause to be constructed, on tbe Property all structures necessa...ry for the Improvements, with materials and plans to cOL.'1cide ydt."1. those approved by the City of New Hope as part of the governmental approval process cited in Subsection 3(b) above. TIlls covenant shall sili"'vive the delivery of the Deed. Construction of the 1liprovements must be substantially completed \;y-it.1in 180 days after construction is commenced on eit.1.er of the buildings tbat comprise the Lmprovements. Buyer shall commence construction on each building and the entire site L.llprm,'emems -\:vhen 50% of either building is either pre-leased or pre-sold, but in no case later than , 20_. If the Impwvements are constructed in 1\'1'0 phases, the covenant contained herein shall apply separately to each building. Construction will be considered substantiallv complete when a fmal certi.iicate of OCCUDancv has been issued/for each .I ~ . building of the Improvements. Promptly after substantial completion of t.~e Improvements the Seller ,'",ill at the request of the Buyer provide. the Buyer \vitha certificate of completion inform 2J.'1d substance reasonably acceptable to the Buyer. Said certificate shall be (and it shall be so provided in the Deed and iD the certificate itself) a conclusive deterlDination of satisfaction and termination of the agreements and covenants or the Buyer (and its successors a...Tld assi::;:liS) to construct the Lmprovements 211d satisfaction of the date(s) for cOll1pletion thereof. If the Seller shall refuse or rail to pro'vide a certificate as required by this Section 21 then the Seller must, . h'h' -.-, 0) d .c.. - l' B . 1 1 B . th . '\Vlhilll t. li1'V (.J aI's auer \^,''r1tten reg~ uest DV the liVer. prOVloe t le ' uver WI~ a wntten ...... ~ ....' oJ.... ./ statement outlining Lt'1 reasonably adequate detail the reasons that the Seller is of the opinion that tlle Buyer has failed to complete the Improvements in accordance \;(,'itll the pr0\7isions in this A~eement, or the reasons the Seller is of t.he opinion t.hat the Buyer is ot.herv..ise in default. A 'Iyriting required oft.~e Seller under this Section 21 must additionally outline t.'1e measures or acts t.11at \vill be necessary, in the opinion of the Seller, for the Buyer to take or perform in order to obtain a certificate of comDletion. The Buver aQIees 3..l1d acknowledQes that in tlle event of an J.. '" '-' '-' ili'1cured default v-lith respect to the Buyer's obligations to const.'Llct the LTllprovements the Seller may, pursuant to t.11e terms outlined in Exhibit C attached hereto tmd made a pal1' hereof, declare u'lat all rights and interests in 3..l'1d to the Property (including to it-nprovements or rights subsequently added to the Property after closing or u'le transaction contemplated by t.1is Agreement) shall revert to the Seller. The city attorney has also determined that this would be the appropriate time to comple:e the .Release of Planned Unit Development Conditional Use Permit Site Improvement Agreement for this proJect. Recommendation . Staff recommends the Council approve the resolution authorizing signatures on the Certificate of Completion and Release of Forfeiture. Request for Action January 28,2008 Page 3 Attachment(s) o Resolution G Certificate of Completion G Release of Planned Unit Development Conditional Use Permit Site Improvement Agreement G City attorney e-mail G Request from Data Sales @ Copy Certificate of Occupancy City of New Hope EDA Resolution No. 2008-_ Resolution authorizing signatures for Certificate of Completion and Release of Forfeiture and the Release of Planned Unit Development Conditional Use Permit Site Improvement Agreement related to the Village on Quebec project at 7500 -7562 42nd Avenue North, by Data Sales, Inc. (Planning Case 06-06) WHEREAS, the EDA has received a request from Village on Quebec, Data Sales, Inc., for the city to provide the Certificate of Completion and Release of Forfeiture as identified in their Purchase and Development Agreement, and; WHEREAS, the Purchase and Development Agreement states that the Economic Development Authority will promptly furnish the Developer a Certificate of Completion after completion of the projects Minimum Improvements, and; VVHEREAS, the Minimum Improvements are deemed to be completed when the city has issued a certificate of occupancy for any individual unit of that building, and; l/VHEREAS, a certificate of occupancy for the building at 7530 42nd A venue Nortl1 was issued on Wednesday, May 9,2007. and; WHEREAS, the city attomey has determined tllat tlus is also tl1e appropriate time to execute the Release of Planned Unit Development Conditional use Permit Site Improvement Agreement. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the city of New Hope, Hennepin County, Minnesota: 1. That the President and Executive Director are hereby autl10rized and directed to sign tlle Certificate of Completion and Release of Forfeiture for the Village on Quebec, located at 7500 - 7562 42nd Avenue North. 2. TI1at the President and Executive Director are hereby authorized and directed to sign the Release of Planned Unit Development Conditional Use Permit Site Improvement Agreement for Village on Quebec, located at 7500 -7562 42nd Avenue North. 3. The City Clerk shall provide Data Sale, Inc., with a signed copy of this resolution and the signed Certificate of Completion. Adopted by the Economic Development Authority of the city of New Hope, Hennepin County, Minnesota, this 28th day of January 2008. President Attest: Executive Director CERTIFICATE OF COl\1PLETION A]\1]) RELEASE OF FORFEITURE WHEREAS, the New Hope Economic Development Authority, a public body corporate and politic under the laws of Minnesota (the "Grantor"), by a Limited \Varranty Deed recorded in the Office of the County Recorder or the Registrar of Titles in and for the County of Hennepin and State of Minnesota, as Deed Document Number 8827723, has conveyed to Quebec Properties LLC, a Minnesota limited liability company, (the "Grantee"), the following described land in the County of Hennepin, State of Minnesota, to-wit: Lot 1 and 2, Block 1, New Hope Quebec Addition, according to the duly recorded plat on file and of record in the Office of the County Recorder, Hennepin County, Mim1esota. WHEREAS, said Deed contained certain covenants 8l1d restrictions, the breach of which by Grantee, its successors and assigns, would result in a forfeiture and right of re-entry by Grantor, its successors and assigns, said covenants and restrictions being set forth in said Deed; and WHEREAS, said Grantee has performed said covenants and conditions insofar as it is able in a marmer deemed sufficient by the Grantor to permit the execution 8l1d recording of this Certificate; NOW, THEREFORE, this is to certify that all building construction and other physical improvements specified to be done and made by the Grantee have been completed 8l1d the above covenants and conditions in said Deed have been performed by the Gr811tee therein and that the provisions for forfeiture of title and right to re-entry for breach of condition subsequent by the Grantor herein is released absolutely ar1d forever insofar as it applies to the land described herein, and the County Recorder or the Register of Titles in and for the County of Hennepin and State of Milmesota is hereby authorized to accept for recording and to record this instrument, and the filing of this instrument shall be a conclusive determination of the satisfactory tem1ination of the covenants and conditions referred to in said Deed, the breach of which would result in a forfeiture and right of re- entry. Dated: ,2008. :NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY By: Martin E. Opem Sr. Its President By: Kirk McDonald Its Executive Director STATE OF MINl\TESOT A } ss. COUNTY OF HENl\TEPIN On this _ day of , 2008, before me, a notary public within and for Hennepin County, personally appeared Martin E. Opem Sr. and Kirk McDonald, to me personally Irno\VTI, who by me duly sworn did say that they are the President and Executive Director, respectively, of the New Hope Economic Development Authority, a public body corporate and politic under the laws of Minnesota, and acknowledge the foregoing instrument on behalf of said Authority. (Notary Public Seal) Notary Public Drafted By: JENSEN A.l'\IDERSON SONDRALL, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, I\1N 55443 (763) 424-8811 P:\.A.ttomey\SAS\1 Client Files\2 City of New Hope\99M20509(42nd and Qu:oec)\99-20509-Ce.<.ificale & R:leaseMDl.ooc 2 RELEASE OF PLANl\'ED UNIT DEVELOPl\1ENT COl\1])ITIONAL USE PERMIT SITE IMPROVEMENT AGREEMENT THIS RELEASE is made by the City of New Hope, Mlimesota, a Minnesota municipal corporation (the "City"): \VHEREAS, the City and Quebec Properties LLC, a Minnesota limited liability company, entered into that certain Planned Unit Development Conditional Use Site Improvement Agreement dated as of July 12, 2006 (the "Site Improvement Agreement"), which Site Improvement Agreement was filed in the office of the County Recorder of Hennepin County, Minnesota, on September 26, 2006, as Document No. 8870494. WHEREAS, the Site Improvement Agreement applied to that celiain property legally described as follows: Lot 1 and 2, Block 1, New Hope Quebec Addition, accordlilg to the duly recorded plat on file and of record in the Office of the County Recorder, Hennepin County, Minnesota. \VHEREAS, the terms and conditions of the Site Improvement Agreement have been satisfied and are no longer in effect. NO\V, THEREFORE, the City hereby releases and temlinates the above- desClibed Site Improvement Agreement of record. IN "WITNESS WHEREOF, the undersigned have caused this Release to be executed on its behalfthis _ day ofJanuary, 2008. CITY OF :NEW HOPE, MINNESOTA By: Martin E. Opem Sf. Its Mayor By: Kirk McDonald Its City Manager STATE OF MINl\TESOTA } S8. COUN1Y OF HEJ\1NEPIN The foregoing instrument was acknowledged before me this _ day of 2008, by Martin E. Opem Sr. and Kirk McDonald, the Mayor and City Manager, respectively, of the City of New Hope, Minnesota, a municipal corporation, on behalf of the City. (Notary Public Seal) Notary Public Drafted By: JENSEN Al~DERSON SONDRALL, P.A. 8525 Edinbrook Crossing, Suite 201 Brooklyn Park, MN 55443 (763) 424-8811 P:\..A.ttomey"SAS\1 Client Files\2 City ofNe;\-' Hope\99-20509(42nd 2....10 Quebec)\99-20509.Release-Dl.doc 2 Page 1 of 1 Jacobsen Curtis From: Sent: To: Steven Sondrall [sas@jasattorneys.com] Wednesday, January 09, 2008 2:54 PM Jacobsen Curtis Subject: RE: Village on Quebec Attachments: 99-20509-Release-D1.doc; 99-20509-Certificate & Release-D1.doc; 99-20509-Collateral Agrmt-D2.doc Curtis Attached are the releases we discussed. Also attached is a copy of the Collateral Agreement I do not recommend we release. As we also discussed, the Purchase And Development Agreement was never recorded, therefore a release for this document is not necessary and would only "muddy up" the title to the property. Contact me if you need anything else or have any questions. Steve Steven A. Sondrall. Esq. Jensen Anderson Sondrall P.A. 8525 Edinbrook Crossing. Suite 201 Brooklyn Park, MN 55443 Direct (7630201-0211 Firm:(763)424-8811 Fax; (763)493-5193 \VARNING: Actual receipt of E-Mail communications should not be assumed. E-Mail communiocations may be intercepted or inadvertently misdirected. The AmeT'ican Bar Association deems E-Mails a valid authorizedform of communication betweenlm"J!er and client, however security of this E-Mail message and attachments (if any)cannot be assured. Unless the text indicates otherwise, this E-Mail message and attachments (if any) shall not be deemed legal advice, nor does it create an attorneylcliellt relationship. {f the reader of this message is 'lOt the intended recipiellt or authorized to deliver it to the intended recipient, dissemination, distribution or copy of this communication is prohibited. Jfyou received this communication in error, please immediately notify sender via E-Mail reply. From: Jacobsen Curtis [mailto:cjacobsen@ci.new-hope.mn.us] Sent: Monday, January 07, 2008 10:52 AM To: Steven Sondrall Subject: Village on Quebec Steve, Attached is the RFA for Village on Quebec, they have requested the Certificate of Completion. Please provide a certificate. Curtis Jacobsen Community Development Specialist City of Ne\v Hope 763-531-5137 763-531-5136 fax cj acobsen@ci.new-hope.nm.us 1 ,n /.... (\(\ 0 From: Jacobsen Curtis [mailto:cjacobsen@ci.new-hope.mn.us] Sent: Tuesday, December 11, 2007 2:44 PM To: Brad Nordgaard Subject: RE: Request for more detail regarding latest billings Brad, A certificate of compliance has not been issued, I guess with the high turn over at Manley no one requested one previously. 'lye will have the Council approve a Certificate of Compliance at the January 14 meeting. Curtis Jacobsen Community Development Specialist City of New Hope 763-531-5137 763-531-5136 fax cj acobsen@ci.ne''IT-hope.mn.us __~~""~==-"""===-""-_~~"~~"_",,,,=~=,,,,,,.,,,,,,,,,,,,''''--,,,,,",,,.=<''''''~'',,",,,,,,,,,,,''''.'~'''''''''=-''''''''''...="'""_""....-~__....."""'~".."'.==-"'==<"=="'.,,...~~._,..,.,"'."'""""""'_...."...~"''''~-<>=..,.."'........R"".c-=""'''''''"'''''...'''''''..,,';,'''~.,..''''..."'"''''~..''"' From: Brad Nordgaard [mailto:bnordgaard@datasales.com] Sent: Tuesday, December 11, 2007 1:45 PM To: Jacobsen Curtis Subject: RE: Request for more detail regarding latest billings Curtis, Do you have or does this eA'ist? I can't locate on file and our lender is requesting. Also to comply with Wells Fargo instructions I need the certificate of compliance from the City of New Hope Do you have that yet? Thanks, Brad Nordgaard Data Sales Co., Inc Phone: 952-895-3350 bnordaaard (alda tasa les .com -