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HomeMy WebLinkAbout06-06 - ADMIN Resolution - Economic Development Authority - 2006/02/21ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY EDA RESOLUTION NO. 06-06 RESOLUTION APPROVING CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY AND UNION LANDIILLC BE IT RESOLVED By the Board of Commissioners ("Board") of the St. Louis Park Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469,108 ("EDA Act"), and is currently administering Redevelopment Project No. 1 ("Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ("HRA Act"), 1.02. The Authority and Union Land II, LLC (the "Redeveloper") have proposed to enter into a Contract for Private Redevelopment (the "Contract"), setting forth the terms and conditions of redevelopment of certain property within the Redevelopment Project, generally described as the former Hoigarml site. 1.03. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder are in the best interest of the City and its residents. Section 2. Authority Approval; Further Proceedings. 2.01. The Contract as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of thority the Contract and any documents referenced therein requiring execution by the 1y, and to carry out, on behalf of the Authority its obligations thereunder. ved by the Board of Commissioners of the St. Louis Park Economic Development 21 st day of February, 2006. `1 C.' . @mak President ATTEST: io /�� A-: i EDA Resolution No. 06-06 -2- SUMMARY OF CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN ST. LOUIS PARK EDA AND UNION LAND II LLC Article I: Defines the specialized terms used in the Agreement. Of particular interest: the definition of "Minimum Improvements," which describes the parameters of the project. Article III: Discusses the details of land acquisition by the Redeveloper: • The Redeveloper has entered into purchase agreements to acquire all the parcels necessary for redevelopment, so there is no EDA obligation to acquire any of the property. • The Redeveloper is responsible for filing the approved plat of the redevelopment property, known as "Hoigaard Village." • The EDA makes no representations about the condition of the soils, and the Redeveloper indemnifies the EDA and the City from claims or actions arising from the presence of hazardous waste or pollutants, unless present due to EDA or City negligence. • The Redeveloper will obtain a waiver of relocation benefits from the owner of the only occupied parcel. • The Redeveloper will pay administrative costs. • The EDA's assistance is not a business subsidy because it meets the "redevelopment exception." Article IV: Provides details of construction: • The Redeveloper will construct the Minimum Improvements and maintain them in good condition until sale of condos/maturity of notes. • The EDA will approve all construction plans for each phase of construction. • Changes to construction plans that adversely affect generation of tax increment or reduce the number of units must be approved by the EDA. • Construction of Phase I will begin in June, 2006 and end by December 31, 2007. Phase II construction begins in June, 2007 and continue through December, 2008. • The EDA may review and approve the association covenants for each condominium association (specific requirements are listed in Section 4.5(b)). • The Redeveloper will construct a stormwater pond and deliver a pond easement to the EDA/City. The pond will serve the redevelopment property and the surrounding area, so the EDA will pay 75% of the construction cost. Redeveloper will maintain and landscape, and the City will periodically dredge and undertake any necessary capital improvements. • The Redeveloper will remove the existing billboard before completion of Phase II of construction. Article VII: Details how financing will be structured: • EDA will first issue initial taxable notes to reimburse the Redeveloper for "Public Redevelopment Costs" (defined in Schedule F of the agreement). • The maximum principal amount of assistance to the Redeveloper will be $5,000,000. EDA Resolution No. 06-06 -3- • The initial notes will be refinanced through issuance of tax-exempt refinancing notes as construction phases are completed. • If the Redeveloper makes excess profit (which varies for each stage of the improvements), 50% of the excess profit will be applied to reduce the principal amount of the final initial note, the principal amount of the refinancing notes, or the outstanding principal amount of any outstanding initial note. Article VIII: Governs assignment and indemnification matters: • The Redeveloper will not transfer or assign the property (except individual condominiums when completed and sold) except with prior written approval from the EDA. • The Redeveloper indemnifies the EDA against any loss or damage arising from any defect in the Minimum Improvements and any claim arising from the Agreement. Article IX: Events of default and remedies: in brief, if the Redeveloper defaults under the Agreement, the EDA may (among other things) withhold tax increment payments related to the defaulting Phase, but defaults in one Phase will not give rise to defaults in the other Phase.