HomeMy WebLinkAbout12-12 - ADMIN Resolution - Economic Development Authority - 2012/08/20ST. LOUIS PARK ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 12-12
RESOLUTION APPROVING A FIRST AMENDMENT OF A
PURCHASE AND REDEVELOPMENT CONTRACT AND A
MODIFICATION OF ASSESSMENT AGREEMENT
BETWEEN THE ST. LOUIS PARK ECONOMIC
DEVELOPMENT AUTHORITY AND ELLIPSE II, LLC
BE IT RESOLVED BY the Board of Commissioners ('Board") of the St. Louis Park
Economic Development Authority, St. Louis Park, Minnesota (the "Authority") as follows:
Recitals.
1.01. Pursuant to its authority under Minnesota Statutes, Sections 469.090 to 469.1082
and 469.174 to 469.1799, as amended, the Authority created the Ellipse on Excelsior Tax
Increment Financing District within its Redevelopment Project No. 1 (the "Project"), for the
purpose of facilitating the redevelopment of certain substandard property within the Project.
1.02. The Authority and Ellipse II, LLC (the "Redeveloper") executed a certain Purchase
and Redevelopment Contract, dated as of February 6, 2012 (the "Ellipse II Contract"), whereunder
the Authority agreed to convey certain property described in the Ellipse II Contract (the
"Redevelopment Property") to the Redeveloper and pledged Available Tax Increment (as defined in
the Ellipse II Contract) to pay or reimburse certain costs incurred by the Redeveloper in connection
with the development of a market -rate rental housing facility on the Redevelopment Property (the
"Minimum Improvements"). The parties further executed an Assessment Agreement dated as of
April 10, 2012 in connection therewith (the "Ellipse II Assessment Agreement"), which established
a minimum market value for the Redevelopment Property and Minimum Improvements.
1.03. The Redevelopment Property is adjacent to certain other property owned by the
Redeveloper (the "Ellipse I Property"), which is subject to a separate Contract for Private
Redevelopment between the parties, dated February 2, 2009 (the "Prior Contract"), whereunder the
Redeveloper constructed a mixed-use retail and rental housing facility on the Ellipse I Property, and
a separate Assessment Agreement dated February 2, 2009 (the "Prior Assessment Agreement"),
which established a minimum market value for the Ellipse I Property.
1.04. In order to meet density requirements for the Redevelopment Property mandated by
City of St. Louis Park ordinance, the Redeveloper intends to allocate a portion of the Ellipse I
Property described as the Southwesterly 11.00 feet of Lot 1, Block 1, Ellipse on Excelsior,
Hennepin County, Minnesota (the "Allocated Property") to the Redevelopment Property for
purposes of the intended construction of the Minimum Improvements.
1.05. In connection with the allocation of the Allocated Property to the Redevelopment
Property, the Redeveloper has requested and the Authority has agreed to release the Allocated
Property from the Prior Contract and Prior Assessment Agreement and to subject such Allocated
Property to the terms and conditions of the Ellipse II Contract and Ellipse II Assessment
Agreement.
1.06. The parties have negotiated and propose to execute a First Amendment to the
Ellipse II Contract (the "First Amendment") to allow for the addition of the Allocated Property
to the legal description of the Redevelopment Property and to subject such Allocated Property to
EDA Resolution No. 12-12 -2-
the terms and conditions of the Ellipse II Contract, and a Modification of Assessment Agreement
(the "Modification") to add the Allocated property to the legal description of the Redevelopment
Property subject to the minimum market value.
Section 2. First Amendment and Modification Approved.
2.01. The First Amendment and Modification as presented to the Board are 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 Deputy Executive Director, provided that execution
of the document by such officials shall be conclusive evidence of approval. The President and
Deputy Executive Director are hereby authorized to execute, on behalf of the Authority, the First
Amendment and Modification.
2.02. The actions of the President and Deputy Executive Director in executing any
other documents necessary to give effect to the release of the Allocated Property from the Prior
Contract and Prior Assessment Agreement, including without limitation execution of the Partial
Release of Agreement and Partial Release of Assessment Agreement as presented to the Board,
are hereby ratified and approved.
Reviewed for Administration:
14AAr
Deft ExecutivfDkectbr
Attest
Adopted by the Economic Development
Authority August 20, 2012
President