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.
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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.
,.,
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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
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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
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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
-