HomeMy WebLinkAbout1993/10/18 - ADMIN - Agenda Packets - Economic Development Authority - RegularA G E ND A
EC O N O M I C D E V E LO P M ENT AUT HO RIT Y
ST . L O U IS PAR K , M INNE SO T A
M on d a y , O c t ob e r 1 8, 1993
7:15 p.m.
1. Call to order
2. Roll call
3. Approval of minutes
a. EDA meeting October 4, 1993
b. Special EDA meeting October
4. Approval of agenda for October 18, 1993
5. Reports
a. Park Nicollet project: Waiver of conditions precedent to
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R E Q U E S T F O R E D A A C T IO N
DATE October 18, 1993
AGENDA SECTION:
NO. 5
Reports ORIGINATING DEPARTMENT:, Community Deve. opment
ITEM: Park Nicollet Project-Waiver of
Conditions Precedent to Conveyance
NO. 5a
APPROVED: 6/ David Hagen, Director
BA C K G R OU N D
Under the agreement with Park Nicollet, the EDA's obligation to convey
property to Park Nicollet is subject to satisfaction of a number of
conditions. This memo addresses a request from Park Nicollet for
waiver of the condition requiring a guaranteed maximum price contract
and sworn construction statement prior to conveyance and a
recommendation from staff for the temporary waiver to the requirement
that construction plans for infrastructure be approved prior to
conveyance.
Attached is a letter from Park Nicollet requesting a waiver from the
contract and sworn construction statement pre-condition. The letter
indicates that $19.29 million of the proceeds of the bonds that were
recently sold are earmarked for construction of this project and that
) based on current estimates this amount will cover expected expenses on
the project. The letter indicates that PNMC Holdings will fund any
costs over this amount of existing funds.
The development agreement requires that prior to conveyance of any of
the lots in the project, construction plans for the project elements
are· to be approved by the EDA. The EDA has approved construction
plans for the Mall Medical Office Building and the West Lot Addition
building. Construction plans, specifications, drawings and related
documents for construction of infrastructure including streets, street
lights, street signs, curb and gutter, sanitary sewer, storm sewer,
water lines, gas and electric utilities, boulevard landscaping,
sidewalks and pedestrian ways have not been provided to the EDA for
review.
RECOMMENDATION
By motion waive the general condition precedent to conveyance of
Authority property relating to signed, guaranteed maximum price
contract and sworn construction statement as set forth in Section
PU 8 L IC WOR K S
V AL
Os1 aiNED
FINANCE
APPROVAL
OBTAINED
COMMU NITY UEVtELUH.
APPROVAL
OBTAINED
APPROVAL
OBTAINED
Executive Director
APPROVAL /22.
OBTAINED C4/T)
ACTION: MOTION BY 2ND BY TO
Park Nicollet-Waiver/Conveyance
October 18, 1993
Page Tw o
10.2 .E .; by motion grant an extension for sub mission of constru ction
plans for infrastru cture (Section 4.2.(h)) from precedent to
conveyance of Authority propert y (Section 10.2.(b)) to prior to
constru ction of infrastru cture.
4454 :GEN44
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rar IN tc o llet M edical Center
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5000 Weast 39n Street
M inneapolis. Minnesota 55416
612/927/3123
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Charlie Meyer, Executive Director
C Ity of St. Louis Park
Eco nomic Development Authority
500 5 M innetonka Boulevard
St. Lo uis Park, Minnesota 55416-2290
D ear C har lie:
In Sec tion 10.2¢) of the Redevelopment Agreement between PNM C Holdings and the
Economic Development Authority, there is a provision that a guaran teed maximum price
contract and sworn construction statements for the project elements be provided to the EDA
prior to conveyance.
PNMC Holdings respectfully requests that the EDA waive this provision of the
Redevelopment Agreement. To commence work and get the necessary groundwork
completed before winter, we have had to seq uence the number of construction packages that
will be issued. These packages will be issued to allow for the continuous construction of
) the project elements according to the schedule, which has been shared with city staff.
In the recently closed bond offering, $19,290,000 worth of bonds were issued for the
estimated costs of PNM C Holdings for the Phase I improvements. Based on the current
budget estimates, this am ount will be sufficient to cover expec ted expenses. In the unlikely
event of cost overru ns that exceed this am ount, PNM C Holdings will fund these costs
direc tly. It was my understan ding that the original intent of this provision was to ensure
that PNM C Holdings had adequate capital to fund the improvements. I believe this is
clear ly shown with the bond proceed s as well as PNM C Holdings commitment to fund any
overruns.
If you would like to discuss furth er, please let me know.
Sincerely,
JC2
John R. DeCoster, Director
Real Estate Services
c: Phil Boelter
Dave Hagen
Bob Lar son
Ran dy M cKa y
Joseph M itlyng
Bil! Telleen
6l
ME MORAND UM
TO: Economic Development Authority
THROUGH: Charles W. Meyer, Executive Director
FROM: David Hagen, Community Development Director/!Jlt
DATE: October 18, 1993
SUBJECT: Park Nicollet Project - Approval of Construction Plans
for Sub-Surface Infrastructure
)
On Friday of last week Park Nicollet indicated that they would
like to begin installation of sub-surface infrastructure this
week. Plans for that infrastructure have been provided and found
to meet the EDA' s objectives. Under the development agreement
with the city these plans must also be approved by the Public
Works Department.
RECOMMENDATION
By motion approve the Construction Plans for the sanitary sewer,
storm sewer, water lines, gas and electric utilities, subject to
approval of the Public Works Department.
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