2008-04-22MOUND HOUSING AND REDEVELOPMENT AUTHORITY
APRIL 22, 2008
The Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met
in regular session on Tuesday, April 22, 2008, at 7:00 p.m. in the council chambers of
city hall.
Members present: Chair Mark Hanus; Commissioners David Osmek, Mike Specht, John
Beise and Greg Skinner
Others present: City Attorney John Dean, Executive Director Kandis Hanson, City Clerk
Bonnie Ritter, Public Works Director Carlton Moore, Cindy Reiter, Ken Perbix, Chuck
Alcon, Amanda Schwarze, Amy Lyon, Paula Larson.
1. Open meeting
Chair Hanus called the meeting to order at 7:00 p.m.
2. Approve agenda
Hanson requested the addition of Item 3.1, Resolution Appointing James Kurtz as Acting
Executive Director.
MOTION by Osmek, seconded by Beise to approve the agenda as amended. All voted
in favor. Motion carried.
3. Approve minutes
Beise offered a correction to the minutes of April 8.
MOTION by Osmek, seconded by Specht to approve the minutes of April 8, 2008, as
amended. All voted in favor. Motion carried.
3.1. Action on Resolution Appointing James Kurtz as Acting Executive Director
MOTION by Osmek, seconded by Beise to adopt the following resolution. All voted in
favor. Motion carried.
RESOLUTION NO. 08-09H: RESOLUTION APPOINTING JAMES KURTZ AS
ACTING EXECUTIVE DIRECTOR OF THE HRA FOR THE REMAINDER OF 2008
4. Indian Knoll Manor Manager's Monthly Report
Cindy Reiter presented the monthly report as follows:
A. March bank statement
B. March income statement
C. Review of bills paid: MOTION by Osmek, seconded by Beise to approve the
bills for March 2008 as presented. All voted in favor. Motion carried.
D. Manager's Report: Everything is going well at the building, and they are
going out for bids for some concrete work in front of the building. There are
also two more buildings in the city that have joined the Crime Free Building
Program, as administered by Officer Niccum.
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HRA Minutes -April 22, 2008
5. Consideration/action on option agreement for 5575 Shoreline Drive
John Dean stated that the HRA has been considering proposals to acquire land in the
Auditor's Road District, and this parcel will be the last one they are considering for
purchase.
MOTION by Beise, seconded by Osmek to adopt the following resolution. All voted in
favor. Motion carried.
RESOLUTION NO. 08-10H: APPROVING OPTION AGREEMENT FOR PROPERTY
AT 5575 SHORELINE DRIVE
6. Consideration/action on Addendum to Contract for Private Redevelopment
John Den explained that the provisions in the proposed addendum were as described at
the meeting of March 25.
MOTION by Osmek, seconded by Beise to adopt the following resolution. All voted in
favor. Motion carried.
RESOLUTION NO. 08-11 H: RESOLUTION AUTHORIZING ADDENDUM TO
CONTRACT FOR PRIVATE DEVELOPMENT
7. Adjourn
MOTION BY Osmek, seconded by Specht to adjourn at 7:12 p.m. All voted in favor.
Motion carried.
` _ Chair Mark Hanus
A/ttest: Bonnie Ritter, City Clerk
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CITY OF MOUND
RESOLUTION NO. 08-09H
RESOLUTION APPOINTING JAMES KURTZ
AS ACTING EXECUTIVE DIRECTOR OF THE HRA FOR THE REMAINDER OF 2008.
WHEREAS, it is determined that the Acting Executive Director of the HRA shall perform
the duties of Executive Director during the disability or absence of the Executive
Director from the City or, in the case of vacancy in the office of Executive Director, until
a successor has been appointed and qualifies; and
WHEREAS, the current Acting Executive Director of the HRA is Gino Businaro, who has
retired from the City of Mound,
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Mound,
Minnesota, to appoint James Kurtz as Acting Executive Director of the Housing and
Redevelopment Authority for the remainder of 2008.
Adopted by the HRA this 22"d day of April, 2008.
Attest: Bonnie Ritter, City Clerk
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Chair Mark Hanus
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MOUND HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO. 08-10H
APPROVING OPTION AGREEMENT FOR PROPERTY AT 5575 SHORELINE DRIVE
WHEREAS, the Mound Housing and Redevelopment Authority (HRA), has reviewed the
terms and provisions of a proposed Option Agreement for the property located at 5575
Shoreline Drive.
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in
and for the City of Mound, Minnesota hereby approves the Option Agreement by and
between the Mound Housing and Redevelopment Authority and the owner(s) of the
property located at 5575 Shoreline Drive and hereby authorizes the Chair and Executive
Director and her designees to execute said document(s).
Adopted by the HRA this 22"d day of April 2008.
Chair Mark Hanus
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A st: Kandis Hanson, Executive Director
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION N0.08-1OH
RESOLUTION AUTHORIZING ADDENDUM TO
CONTRACT FOR PRIVATE DEVELOPMENT
WHEREAS, the Authority and the Redeveloper entered into a Contract for Private
Redevelopment dated March 22, 2005, and subsequently amended by First Amendment to
Contract for Private Redevelopment dated July 5, 2005 (collectively, the "Contract"); and
WHEREAS, it is the desire of the parties to enter into this Addendum in order to address
matters that have occurred since the amendment; and
WHEREAS, the Authority has reviewed the form of document entitled: Addendum to
Contract for Private Development, (attached hereto as Exhibit A) has received the
recommendations of staff regarding same and is fully informed as to its contend.
NOW THEREFORE BE IT RESOLVED by the Authority as follows
1. The Addendum is, in all respects hereby approved.
2. The Executive Director and Authority Chair are directed to execute the same
and to take all steps necessary to carry out the obligations of the Authority
thereunder.
Adopted by the Housing and Redevelopment Authority this 22"d day of April, 2008
Attest: Bonnie Ritter, City Clerk
Chair Mark Hanus
332206v1 JBD MU195-15
Resolution No. 08-10H -EXHIBIT A
ADDENDUM
TO
CONTRACT FOR PRIVATE DEVELOPMENT
Final
THIS ADDENDUM is made and entered into as of the 22nd day of April, 2008 by
and between the Housing and Redevelopment Authority in and for the City of Mound,
Minnesota, a public body corporate and politic (the "Authority") and Mound Harbor
Renaissance Development, LLC, a Minnesota limited liability company, (the"Redeveloper")
RECITALS
WHEREAS, the Authority and the Redeveloper entered into a Contract for Private
Redevelopment dated March 22, 2005, and subsequently amended by First Amendment to
Contract for Private Redevelopment dated July 5, 2005 (collectively, the "Contract"); and
WHEREAS, it is the desire of the parties to enter into this Addendum in order to
address matters that have occurred since the amendment.
NOW THEREFORE, in consideration of the premises and mutual obligations of
the parties hereto, the parties hereby agree as follows:
Section 1. Scope and Intent of Addendum. The provisions of this Addendum are
intended to replace and supersede any provisions in the Contract inconsistent with the
provisions herein; but that otherwise, the Contract is to remain in full force and effect
according to its terms.
Section 2. Phase I. Commencement and Completion of Minimum Improvements.
1. The parties acknowledge that construction of the Phase I Minimum
Improvements was commenced in a timely manner and in
accordance with the provisions of the Contract.
2. The time limits for completion of construction of the Phase I
Minimum Improvements are hereby released.
3. The Redeveloper agrees that it will continue with its efforts to
complete construction of the Phase I Minimum Improvements as
soon as reasonably possible.
Section 3. Phase II Commencement and Completion of Minimum Improvements.
1. Construction of the Phase II Minimum Improvements will be done in stages.
The first stage, Stage I will involve the construction of a mixed use structure
located at the East end of Phase II. Construction of Stage I must commence
331796v2 JBD MIJ195-15
not later than June 30, 2010, and be completed not later than 15 months after
commencement.
2. Construction of Stage II of Phase II (Stage II may include all or part of Phase
II lying west of Stage I) must be commenced not later than two years after
commencement of Stage I, and be completed not later than 15 months after
commencement.
3. Construction of Stage III of Phase II (Stage III will include all of Phase II not
covered by Stages I and II) will commence not later than two years after
commencement of Stage II, and be completed not later than 15 months after
commencement.
4. If the Redeveloper fails to commence or complete construction of Stage I
within the time limits contained in 1 above, the Authority may terminate the
Contract as it pertains to the rights and obligations of Redeveloper to
construct the Phase II Minimum Improvements.
If the Redeveloper commences and completes the Stage I Minimum
Improvements within the time limits contained above, but fails to commence
or complete the Stage II Minimum Improvements within the time limits
contained in 2 above, the Authority may terminate the Contract as it pertains
to the rights and obligations of the Redeveloper to construct the Stage II and
III Minimum Improvements.
6. If the Redeveloper commences and completes the Stage II Minimum
Improvements within the time limits contained above, but fails to commence
or complete the Stage III Minimum Improvements within the time limits
contained in 3 above, the Authority may terminate the Contract as it pertains
to the rights and obligations of the Redeveloper to construct the Stage III
Minimum Improvements.
Section 4. Phase III Right to Assign. Redeveloper hereby agrees that, unless it has
commenced construction on the Phase III Minimum Improvements, it will transfer and
assign its right title and interest in and to the development of Phase III to any entity
designated and approved by the Authority for that purpose. Until such designation is made,
the Redeveloper may continue to review and act on the redevelopment of Phase III.
Section 5. Phase III Commencement and Completion of Minimum Improvements.
Unless extended, construction of the Phase III Minimum Improvements will commence not
later than June 1, 2012, and be completed not later than June 1, 2014.
Section 6. 110 South Right of First Refusal Released. The Redeveloper hereby releases
and terminates the right of first refusal granted to the Redeveloper in Article IX of the
Contract.
331796v2 JBD MU195-15
IN WITNESS WHEREOF, the parties have caused this Addendum to the Contract
for Private Redevelopment to be duly executed in each of their names and on their behalf on
or as of the date first above written.
Dated: 4~ ®? ~ , 2008
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HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MOUND, NIINNESOTA
By
Mark Hanus
Chair
Kandis .Hanson
Executive Director
331796v21BD MU195-15
Dated: i o~0 2008
MOUND HARBOR RENAISSANCE
DEVELOPMENT, LLC,
By
David Ne an
Chief Manager
B
Thomas A. Stokes
~esi~eri~ ~wE. Fa:y:~.~-~''
331796v2 JBD MU195-15