The URL can be used to link to this page

Home My WebLink About1994/06/20 - ADMIN - Agenda Packets - Economic Development Authority - RegularAGEND A ECONOMIC DEVELOPMENT AUTHORITY ST. LOUIS PARK, MINN ESOTA Monday, June 20, 1994 hq #3 hung "_ i nt asr 3. oval of minutes of aua, 1ssa meeti®(]/#/(Q] 3-0 4. Approval of agenda for June 20, 1994 1/ I CI/G# 6-0 a. Rans nanaaamnene aareanes (/l/CD 9-0 7:00 p.m. away qf 2. Roll call 6 .1 . 5. Reports ) b. Amendment to Frauenshuh redevelo m ta reement for fast tooa restaurant //rc#@ Gs ' 5@4 H t e. Amendments to Frauenshuh redevelopment contract <-m e±taaa susses G/ &ppo, l'? !'ti ; {vtO ek ~/ D ~ I liq] ma 5 t GI#O 7. New business 8. Adjournment :35 {/Co REQ UEST FOR EDA ACTION r, DATE June 20, 1994 AGENDA SECTION: Reports NO. 5 ORIGINATING DEPARTMENT: Community Development ITEM: NO. 5a Ramp Management Agreement APPROVED: ! David Hagen, Director BACKGROUND At the last EDA meeting, a proposed Ramp Management Agreement was approved, in substantially the form presented, with a requirement that the agreement in its final form be submitted to the EDA. A copy of the agreement as executed will be distributed at the meeting on Monday evening for EDA review. Numerous changes to the agreement were made including the following: 1. Vendor claims relating to operation of the ramp would be made directly by PNMC Holdings rather than by the EDA with a reimbursement by PNMC Holdings. 2. Individual vendor claims would not be approved by the EDA unless they constitute significant deviations from the budget. Likewise, to the degree that public bidding is not required, a list of vendors would be submitted by PNMC Holdings and approved as part of the budget approval process. 3. The reporting requirements of PNMC Holdings to the EDA were reduced from monthly to quarterly until such time as Holdings charges for the ramp. 5086:GEN47 PU8L IC WORKS APPROVAL AINED FINANCE APPROVAL OBTAINED COMMUN1 I Y UEVELUH. APPROVAL OBTAINED APPROVAL OBTAINED 1 Executi~e i rector APPROVAL OBTAINED ACTION: MOTION BY 2ND BY TO ------------ ------------ ------ REQUEST FOR EDA ACTION June 20, 1994 DATE AGENDA SECTION: Reports NO. 5 ORIGINATING DEPARTMENT: Community Development ITEM: Amendment to Frauenshuh Redevelopment Agreement NO. for Fast Food Restaurant APPROVED: el David Hagen, Director 5b BACKGROUND ) At the last meeting of the EDA, a request for certain changes to the Redevelopment Contract with Frauenshuh Companies relating to the fast food restaurant was deferred. Frauenshuh Companies had requested changes to the agreement that would allow the lessee of the fast food restaurant site to receive the proceeds of any insurance or condemnation awards. Additionally, they requested that the lessee not be required to rebuild in the event that damage or destruction of that building occurs. The EDA had expressed general concurrence that the proceeds of insurance and condemnation be paid to lessee of the fast food restaurant. The EDA expressed concern about the lessee not being required to rebuild in the event of damage or destruction. Since the last meeting, Frauenshuh has withdrawn their request for the amendment eliminating the requirement to rebuild. Attached is a proposed agreement that requests only that McDonald's, as the lessee of the fast food restaurant site, receive the proceeds of insurance or condemnation awards. The EDA's attorney has not yet reviewed the proposed agreement. RECOMMENDATION Subject to review of the EDA's attorney, it is recommended that the proposed amendment be approved and that its execution by the President and Executive Director be authorized. 5085: GEN4 7 PUBLIC WORKS APPROVAL c AINED ... '--./ FINANCE APPROVAL OBTAINED COMMUNI I Y UE VELUH. APPROVAL OBTAINED APPROVAL OBTAINED ! Executive Director APPROVAL. 7. l, oerAwso UA/ lg/] ( ACTION: MOTION BY 2ND BY TO ------------ ------------ ------ g» ··' AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT BY AND BETWEEN T H E S T . L O U IS PARK ECONOMIC DEVELOPMENT A U T H O R ITY AND FRAUENSHUH COMPANIES ) THIS AMENDMENT is entered into this day of June, 1994, by and betw een The St. Louis Park Economic Development Authority ("Authority") and Frauenshuh Companies ("Redeveloper"). WHEREAS, Authority and Redeveloper are parties to a Contract for Private Redevelop- ment ("Agreement"), dated April 8, 1993 as amended; and WHEREAS, Redeveloper has the option under the Agreement to acquire Lot 7, Block 1, Tower Place (the "Demised Premises"); and WHEREAS, DRF Park Village Limited Partnership, an affiliate of Redeveloper, as Landlord, has entered into a Ground Lease dated 1 994 ("Ground Lease") with McDonald's Corporation ("McDonald's"), as Tenant, which provides for McDonald's to construct a building and other improvements on the Demised Premises; and WHEREAS, the Ground Lease requires McDonald's carry the insurance on the buildings on the Demised Premises and provides that in case of loss the proceeds of such insurance· shall be paid to McDonald's; and V HEREA S , the Ground Lease provides, in the event of a taking or condemnation of the Demised Premises, that any portion of the award or other compensation which is attributable to the buildings and im provements on the Demised Premises shall be paid to McDonald's; and WHEREAS, McDonald's may elect to finance construction of the buildings and improvements on the Demised Premises directly or through an affiliate, and thus its position as to the insura nce and condemnation provisions of the Agreement are similar to that of a first mortgagee; and WHEREAS, Section 12.3 of the Agreement provides for modification of the Agreement for the benefit of a holder of a mortgage or other security interest with respect to the disposition of the proceeds of a condemnation award or insurance and in order to protect and accommodate the interests of such holder; and WHEREAS, McDonald's has agreed in the Ground Lease to pay as ad valorem real estate taxes an am ount not less than $4 6,440 per annum so long as the Demised premises are subject to the obligations regarding payment of taxes or payments in lieu thereof or tax guaranties under the Agreement, and has agreed that the Authority is a third-party beneficiary to such obligations and may directly take action to enforce such obligations; and frauensh\am_cont. 02 06/13/94 { Jg J Jg Ag AA J loo, g • ~1..... - - - ..., ..., ...,_ .., .... ..., WHEREAS, the Authority has determined that this Amendment will adequately protect the legitimate interests and security of the Authority with respect to the Redevelopment Project and recovery of the amounts expended by the Authority pursuant to the Agreement. NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties agree to amend the Agreement as follows: 1. Section 12.4 shall be added to the Agreement and shall read as follows: Section 12.4 McDonald's Ground Lease. Notwithstanding anything in this Agreement to the contrary, so long as that certain Ground Lease dated 1994, between DRF Park Village Limited Partnership and McDonald's Corporation (with its successors and assigns, the "Ground Lessee") remains in effect as to Lot 7, Block 1, Tower Place (the "McDonald's Site"); (a) (b) the net proceeds of any insurance relating to the damage or destruction of a Project Element on the McDonald's Site shall be payable in case of loss to the Ground Lessee; and if the whole or any part of the McDonald's Site and the Project Elements thereon is taken or condemned by any competent authority for any public use or purpose, or purchased under threat of any such taking or condemnation, the Ground Lessee shall be entitled to that portion of the award or other compensation which is attributable to the buildings, alterations and improvements on the McDonald's Site which are taken or condemned, and neither the Redeveloper, the Ground Lessee, nor any other tenant or subtenant shall be required to reconstruct or restore any such Project Element. frauensh\am_cont.OT 06/13/94 2 REQ UES T FO R E D A A C T IO N 1 DATE Tune 20 1 1994 AGENDA SECTION: Reports NO. 5 ORIGINATING DEPARTMENT: Community Development ITEM: NO. 5c Amendments to Frauenshuh Redevelopment Contract APPROVED: et! David Hagen, Director BACKGROUND ) The Redevelopment Contract with Frauenshuh Companies gives the EDA some authority relating to transfers and assignments of Frauenshuh Companies' interests to other parties. Frauenshuh is requesting that the EDA allow transfer of a small interest in the project to a party other than those listed in the Redevelopment Contract. Frauenshuh Companies is also requesting that the agreement be clarified that approval of construction plans for the theater building and retail building not be required prior to conveyance. The agreement also is ambiguous as to whether the EDA approval for the construction plans for the theater building and the retail building located between the two restaurant buildings is resolved before conveyance to Franenshuh. Amendments to the agreement that would approve this amendment and clarifications are in the process of being prepared and will be available for the EDA's consideration on Monday evening. 5092: GEN47 ( PUBLIC WORKS FINANCE COMMUN1 I 1 DUt VtELUH. Executive Director APPROVAL APPROVAL APPROVAL APPROVAL APPROVAL~ AINED OBTAINED OBTAINED OBTAINED OBTAINED "-,/ I ACTION: MOTION BY 2ND BY TO