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2000-06-27Bw' ~ • MEETING OF THE MOUND HOUSING AND REDEVELOPMENT AUTHORITY 5341 MAYWOOD ROAD MOUND, MINNESOTA 55364 DATE: JUNE 27, 2000, 7:00 P.M. LOCATION: COUNCIL CHAMBERS, MOUND CITY HALL ROLL CALL: TAX INCREMENT FINANCING AGENDA: 1. APPROVE MINUTES OF JUNE 13, 2000, HRA MEETING. 2. MAXWELL STRUCTURAL AND ENVIRONMENTAL STUDIES COST ESTIMATES. 3. HOTEL DISTRICT DEVELOPMENT RECOMMENDATION. 4. ADDITIONAL MATTERS REGARDING RAY MAR PROPERTIES DEVELOPMENT. 5. ADJOURN. ~J ~.. ., RAFT HRA MINUTES -REGULAR MEETING -JUNE 13, 2000 f Mound Henne in Count Minnesota, The Housing and Redevelopment Authority of the Crty o p y, met on Tuesday, June 13, 2000, at 7:00 p.m., in the Council Chambers at 5341 Maywood Road, in said City. Those present: Chairperson Pat Meisel; HRA Board Members: Andrea Ahrens, Bob Brown, Mark Hanus, and Leah Weycker. Also in attendance were Acting City Manager Fran Clark, Mound Visions Coordinator Bruce Chamberlain, City Engineer John Cameron, James Prosser of Ehlers & Associates, and Recording Secretary Diana Mestad. Others present: Walter and Janea Carlsen, 5782 Elm Road; Ron Helmer of The Rottlund Company; Richard Palmiter of The Rottlund Company; Peter Meyer, 5748 Sunset; Linda Slieverseti, Mound; David Deters, 2261 Commerce; John Rotev, 3381 Commerce; Steve Wagner, Mound; Lom Han; Bill and Dorothy Herta, 2360 Commerce; Annie Schmitt, 4708 Island View Drive; Greg Knutson, 4701 Island View. Chairperson Meisel called the meeting to order at 7:00 p.m. TAX IN REMENT FINANCING. 1.0 APPROVE MINUTES OF MAY 23,_2000. MOTION by Brown, seconded by Weycher, to approve the Minutes of May 23, 2000. The vote was unanimously in favor. Motion carried. 5-0. 0.1 RESOLUTION AUTHORIZIN(; CERTAIN REVISIONS TO CONTRACT FOR PRIVATE REDEVELOPMENT WITH RAY MAR PROPERTIES. INC. Jim Prosser, Ehlers & Associates, had no comments other than what was presented in the packet. He confirmed that the areas that are lined out in the agreement have been deleted and the double underlined portions represent additions to the agreement. Chairperson Meisel stated that this puts the City in the second position for dollars put out. HRA Board Member Ahrens stated that she did not see a problem with this. MOTION by Ahrens, seconded by Brown, to accept the resolution as submitted. The vote was unanimously in favor. Motion carried. 5-0. RESOLUTION #00-~: RESOLUTION ATHORIZING CERTAIN REVISIONS TO CONTRACT FOR PRIVATE REDEVELOPMENT WITH RAY MAR PROPERTIES, INC. v Mound HRA Minutes. June 13, 2000 ~~ ~ ~R qFr ADJOURNMENT• MOTION by Brown, seconded by Ahrens to adjourn the meeting at 7:06 p.m. The vote was unanimously in favor. Motion carried. 5-0. Fran Clark, Acting City Manager Attest: Chairperson Meisel • • _ Y' Creative Solutions for Land Planning and Design ®© Hoisington Kcegler Group Inc. ©® MEMO June 23, 2000 To: Kandis Hanson Mound City Manager CC: John Dean, City Attorney Jim Prosser, Redevelopment Coordinator From: Bruce Chamberlain Mound Visions Coordinator Re: Evaluation of Maxwell property. As requested by the HRA, we have assembled consulting fees associated with evaluating the Maxwell property. The HRA decided earlier this year not to pursue acquisition of the property based on contamination and poor soils found on the site. The evaluation would focus on three components including: 1) structural mitigation due to poor soils needed for a proposed hotel building 2) soil stabilization to support a parking lot 3) soil investigation/remediation needed through the Petroleum Fund and Voluntary Investigation and Clean-up Program (VIC) I have received general consulting fees from three firms with specialty in each area. Fees for items 1 and 2 would each be in the range of $2-3,000. Item 3 would be significantly more but may also be mostly reimbursable. We know by the investigation that has already been done, that both petroleum and "volatile organic compounds" have been discovered on the property. Consulting fees related to the petroleum investigation and clean-up would be in the range of $15,000. But, the consulting and clean-up costs would be eligible for 90% reimbursement through the Petro Fund. Investigation and clean-up of other pollutants would occur through the VIC Program. Consulting fees for this program would likely be in the range of $25-50,000 with MPCA charges of $5-15,000. Because the project would create jobs, the work would be eligible for DTED grants and the City may have a good chance of receiving a grant. Something for the HRA to consider is the fact that VOCs have been found on the City-owned Lost Lake site as well. Even though the MPCA cleared the site for certain compounds back in the 1980's, the City would still hold liability for contamination if the land were to be transferred to another party. The way for the City of clear itself of liability is to enroll the property in the VIC - -...~ y Ir Kennedy graven 470 Pillsbury Cencer 200 South Sixch Sucet Minnctpolis MN 55402 (612) 337-9300 telephone (612) 337-9310 fax http://www.kennedy-graven.com Joxr- B. DEaly Attorney at Law Direct Dial(6l2)337-9207 email: jdeanQkennedy-graven.com September 27, 1999 Fran %iarK Acting City Manager City of Mound 5341 Maywood Rd. Mound, MN 5364-1627 Re: HRA/Balboa Purchase Agreement. q,2 x_99 P. ~~~~ ~ 3~P a•~ ~ ; ,. 1 t~~~~ a ~~ ~ ~~ Dear Fran: Enclosed please find an executed original of the referenced agreement. Please retain the agreement in the files of the HRA. ~Ve are working on the title and environmental issues and will keep the HRA informed as to the status. The agreement has a K`drop dead" date of November 27, 1999. Please schedule the item for the agenda of the last HRA meeting before November 27 so that it can make the election to proceed or not. .Sometime in mid-November, it will also be a good idea to begin to make arrangements for the f'ir.;~ to loan the HRA the purchase price. Respectfully Yours, i B. Dean -:db losure r • JBD-1693~t0 MU195-i . _, _ ' Y x ._ Final PURCHASE AGREEMENT Mound, Minnesota ~~ 1999 IN CONSIDERATION OF Tl~ MUTUAL COVENANTS, DUTIES AND OBLIGATIONS CONTAINED HEREIN, the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MOUND, a Minnesota public body corporate and politic, having its principal place of business at 5341 Maywood Road, Mound Minnesota 55364 ("BUYER"), hereby agrees to the purchase of property situated in the County of Hennepin, State of Minnesota, and legally described in the attached Exhibit A. ("Property") from the undersigned BALBOA CENTER LIlVIITED PARTNERSHIP, a Limited Partnership under the laws of the State of Texas having its principal office at 3131 McKinney Avenue, Suite 404, Dallas, TX 75024 ("SELLER"), said SELLER agreeing to sell such Property to BUYER for the sum of Five Hundred Thousand Dollars ($500,000) which BUYER agrees to pay in the following manner: a. Five thousand dollars ($5,000) as earnest money, the receipt of which is hereby acknowledged, and which shall be held and disbursed pursuant to the terms of this Agreement. • b. The balance of the purchase price in cash or by certified or cashier's check or wire transfer of immediately available funds on the closing date. THE CONDITIONS AND TERMS OF THIS PURCHASE AGREEMENT INCLUDE THE FOLLOWING: 1. DEED/NIARKETABLE TITLE: Subject to performance by BUYER, SELLER agrees to execute and deliver at the time of closing a limited warranty deed conveying marketable title to said Property, subject only to the following exceptions: a. Building and zoning laws, ordinances, state and federal regulations; and b. Easements, reservations and restrictions of record, if any. 2. POSSESSION-CONDITION: SELLER agrees to deliver possession not later than the date of closing. 3. COSTS AND PRO RATIONS: SELLER and BUYER agree to the following pro rations and allocations of costs regarding this Agreement a. Deed Tax. SELLER shall pay all state deed tax regarding the Deed and any other documents necessary to place record title in the condition warranted and to be delivered by SELLER under this Agreement b. Recording Costs. BUYER shall pay the cost of recording all other documents, including the deed to be delivered by SELLER to BUYER. JSD-166726 1 MV195-2 c. Taxes and Assessments. SELLER shall pay real estate taxes due and payable in 1999 and special assessments certified for payment with such taxes, if any. BUYER shall pay all real estate taxes due and payable in 2000 and special assessments certified for payment with such taxes. BUYER shall assume all special assessments levied or pending with respect to said Property on the date of closing. SELLER makes no representation or warranty whatsoever concerning the amount of real estate taxes or assessments which shall be assessed or levied against the Property subsequent to the date of this Purchase Agreement_ d. Title Insurance Commitment Costs. SELLER shall pay all service charges for obtaining the title insurance commitment with respect to the Property described in Section 4. e. Title Insurance Premium. BUYER shall pay all premiums required for any owner's or mortgagee's title insurance policy issued in connection with this transaction. f. Closing Costs. SELLER and BUYER shall each pay one half (1/2) of any closing fee payable to Title Company with respect to the transaction contemplated by this Agreement. 4. TITLE: Within a reasonable time after acceptance of this Purchase Agreement, SELLER shall furnish to BUYER a title insurance commitment covering the Property. BUYER is responsible for purchasing title insurance for the Property. BUYER shall have 30 business days after receipt of the commitment (but in no event less than 30 days after the date on this Purchase Agreement) to examine the same and to deliver written objections to title, if any, to SELLER. SELLER shall be allowed 60 days after the making of BUYER's objections to cure the same, but shall have no obligation to do so. Pending such cure, the closing specified under Section 14 shall be postponed to the extent necessary to accommodate such time period. Upon such cure, the closing shall be held on the later of (a) the closing date specified under Section 14; or (b) the first business day occurring 10 days after the date such cure is completed. If such cure is not completed within said 60 day period, BUYER shall have the option to do any of the following: a. Terminate this Agreement, whereupon the earnest money shall be returned to BUYER. b. Waive one or more of its objections and proceed to closing. r 5. DEFAULT: If BUYER shall default in any of the covenants contained in this Agreement, SELLER may terminate this Agreement, time being of the essence hereof. Either parry shall i have the right of enforcing the specific performance of this Agreement provided this JSD-166726 2 MU195-Z • • ,. r~ received any notice from any person or authority as to a breach of the covenants. Any notices received by SELLER prior to closing shall be provided to BUYER promptly. 10. DISCLAIMER OF WARRANTIES: BUYER ACKNOWLEDGES THAT TT WILL HAVE ADEQUATE OPPORTUNTTY TO INSPECT THE PROPERTY AND ACCEPTS THE RISK THAT ANY INSPECTION MAY NOT DISCLOSE ALL MATERIAL MATTERS AFFECTING THE PROPERTY. SUBJECT ONLY TO THE TERMS OF SECTIONS 3 AND 9, BUYER AGREES TO ACCEPT THE PROPERTY IN 1TS "AS IS" "~~RE IS" AND " VVI'I'H ALL FAULTS" CONDITION AT CLOSING WITHOUT ANY REPRESENTATION OR WA,F:ItAN'I'Y WHATSOEVER INCLUDING AS TO MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, AND WITHOUT ANY RIGHT OF SET-OFF OR REDUCTION IN THE PURCHASE PRICE. 11. SURVIVAL OF REPR'FSENTATIONS A'YD WARRANTIES: All of the representations, warranties, covenants and agreements of the parties hereto contained in this Agreement shall survive the closing of the transaction contemplated herein and the delivery of any documents provided for herein for a period of six months and shall not be merged into any other agreement. - 12. RISK OF LOSS: If the Property is substantially damaged before the closing date so as to make its use for the intended purposes significantly more costly, this Purchase Agreement shall become null and void, at the BUYER's option, provided that BUYER notifies SELLER of such termination within five days of the Property damage. ff such an event occurs, BUYER and SELLER agree to sign a Cancellation of Purchase Agreement within a reasonable time after such event takes place. 13. 'TIlVIE OF ESSENCE: Time is of the essence in this Purchase Agreement. 14. CLOSING DATE AND LOCATION: Closing shall take place at any location which is mutually acceptable to the parties. Closing shall occur on January 5, 2000. 15. „NOTICES: Any notice required or permitted to be given by any party upon the other is given in accordance with thq Agreement if it is directed to the SELLER by delivering it personally to the SELLER; or if it is directed to the BUYER, by delivering it personally to the BUYER; or to either parry if mailed in a sealed wrapper by United States registered or certified mail, return receipt requested, postage prepaid; or if transmitted to either party by facsimile, copy followed by mailed notice as above required; or if deposited by either party, cost paid with a nationally recognized, reputable overnight courier, properly addressed as follows: IF TO THE SELLER: Balboa Center Limited Partnership C/o CK Development Company 4600 Westbury Drive Colleyville, Texas 76034 ATTN: Gary N. Maxwell IF TO THE BUYER: JSD-166726 MU195-2 4 Housing and Redevelopment Authority ~~ in and for the City of Mound 5341 Maywood Road Mound, Minnesota 55364 . ATTN: Executive Director and City Manager AND COPY TO: John B. Dean KENNEDY & GRAVEN, CHARTERED 470 Pillsbury Center 200 South Sixth Street Minneapolis, Minnesota 55402 Notices shall be deemed effective on the earlier of the date of receipt or the date of deposit as aforesaid; provided, however, that if notice is given by deposit, that the time for the response to any notice by the other parry shall commence to run one (1) business day after any such deposit. Any party may change its address for the service of notice by giving written notice of such change to the other party, or in any manner above specified, ten (10) days prior to the effective date of such change. 16. EXECUTION IN COUNTERPARTS: This Purchase Agreement may be executed in counterparts by the parties hereto. 17. ASSIGNABILITY: BUYER may not assign its rights under this Agreement without the consent of SELLER, which consent maybe given or withheld by SELLER in its discretion. 18. GOVERNING LAW: 'This Agreement shall be construed under and governed by the laws of the State of Minnesota. 19. SEVERABILI'TY: ff any term of this Agreement or any application thereof shall be invalid or unenforceable, the remainder of this Agreement and any other application of such term shall not be affected thereby. 20. ENTIRE AGREEMENT: This Purchase Agreement, any attached exhibits and any addenda or amendments signed by the parties shall constitute the entire agreement between SELLER and BUYER, and supersedes any other written or oral agreements between SELLER and BUYER. This Purchase Agreement can only be modified in writing signed by SELLER and BUYER. 21. NOTICE: The attached notice is made a part of the Authority's offer to purchase. `J JSD-166726 rj MU195-2 `/, The undersigned do hereby approve the above Agreement and the sale thereby made. Date: ~ ~~ SELLER: BALBOA CENTER LIlVIITED PARTNERSHIP By: CK Development Company Its General Partner G~.~ ~~ By: G N. Maxwe Its Vice President HOUSING AND REDEVELOPMENT AUTHORITY IN AND THE CITY OF MOUND By: Its Chair . By: /il~~yir- o,v.~ Its Executive Director This instrument was drafted by: KENNEDY & GRAVEN, CHARTERED (7FiD) 470 Pillsbury Center 200 South Sixth Street Minneapolis, Minnesota 55402 612-337-9300 M157,8Z31.03 • JBD-166726 6 MU195-2 `~ NOTICE TO BALBOA CENTER LIlVIITED PARTNERSHIP You are hereby notified as follows: 1. The Housing and Redevelopment Authority in and for the City of Mound ("HRA") is a legal entity organized and operating in accordance with Minnesota Statutes, Chapter 469 2. Among the powers conferred upon the HRA is the power of eminent domain. 3. The parcel of land which is the subject of the attached purchase agreement is located within the area of the City of Mound which the HRA has designated as a Redevelopment Project Area. 4. It is the intention of the HRA to acquire the subject property and to make it available for redevelopment. 5. In the event that the HRA and the owner are unable to reach mutually acceptable terms concerning the purchase of the subject property, is the present intention of the HRA to take the steps necessary, and in accordance with the applicable provisions of law, acquire the subject property through the exercise of its power of eminent domain. • ,. t JSD-166726 '] MV195-2 ~, -- E~1T A L al Descri lion of the Pro erty The land referred to is situated in the State of Minnesota, County of Hennepin, and is described as follows: Parcel l: (Totrens Certificate of Title No. 860787) The West 143.3 feet of Block 4, lying North of the South 453.36 feet thereof, all in Shirley Hills, Unit F, according to the plat thereof on file or of record in the office of the Registrar of Titles in and for Hennepin County, Minnesota. Parcel 2: (Torrens Certificate of Title No. 860788} All of Block 4 except the Southerly 300 feet thereof and except that part of the West 143.3 feet thereof lying North of the South 453.36 feet thereof and except the East 225.00 feet thereof, Shirley Hills, Unit F, according to the plat thereof on file or of record in the office of the Registrar of Titles in and for Hennepin County, Minnesota. M1328231.03 ~ y i• JBD-166726 $ MU195-2 L ~ FAX COVERSHEET CITY OF MOUND 5341 MA YWOOD ROAD MOUND, MJd 5384 PHONF: 612-472-0600 FAX: 612-472-0620 m~~ }~~R' T0: 0 ~~/ ~' ~ }~~rs RS 4~ F~ D CI 'tis FAX: ~ ~ oZ.~ SD 7a ~'~s/~~ 9~ FROM: ~ i DATE: 9-ag~~~' TOTAL PAGES I,~ PUAPaS~: v For your information Take appropriate aCSon As you re~uestad Review and return As we discussed Reply to sender R£IiIWRKS: For your approval Otfier (sea remarks) -' ~ . I~ •v Creative Solutions for Land Planning and Design • Hoisin on Kcegler Group Inc. . ~ MEMO June 23, 2000 To: Mound HRA From: Bruce Chamberlain, Mound Visions Coordinator John Dean, City Attorney Re: Bloomquist Proposal for Hotel Development. On June 8, Kandis Hanson, Jim Prosser, Bruce Chamberlain and John Dean met with Richard and Sue Bloomquist and their attorney, John Price. The meeting followed-up an earlier discussion between the Bloomquists, Kandis Hanson and Bruce Chamberlain. The meeting was held to discuss the Bloomquist's interest in developing a hoteUrestaurant facility on the Lost Lake site; and to hear their request for an exclusive rights agreement with the HRA for the period of time they are studying the feasibility of such a development. At the conclusion of the meeting, we informed the Bloomquists that staff would review their request and present a recommendation to the HRA Board at its June 27 meeting. BACKGROUND Creating a diverse package of destination elements (shopping, recreation, entertainment, working, and living) is the overarching strategy of the Mound Visions program. A close second is the strategy to rebuild downtown with such a high level of azchitectural integrity and attention to detail that the consumer's image of downtown Mound will be flipped 180 degrees from what it is today. These strategies aze probably most crucial in regard to development of the hotel site. While much of downtown is targeting Mound residents, the hotel site has been envisioned as the "visitor destination gateway" or first impression for the downtown experience. Lost Lake would provide the services and unique facilities that cater to visitors. Concepts prepared for the site (as attached) suggest a mix of uses including an inn, banquet facility, farmers market, concessions, wintertime skating shelter, public restrooms and transit facilities. The inn itself has been envisioned as a facility that recalls the famous Lake Minnetonka resorts of the turn-of-the- Century. In 1997, the City entered into an exclusive agreement with Northern Hospitality, Inc. to study the feasibility for a hotel development. That agreement was intended to provide Northern with the same opportunities to study the site as the Bloomquists aze requesting. The Northern agreement included an initial period of nine months; and was extended by the city for an additional aeriod, Memo - Mound HRA June 23, 2000 Page 2 of 3 • and was ultimately terminated within the last six weeks. A preliminary market study conducted during the term of the Northern agreement concluded that the Mound hotel market could support a 40-50 room facility together with limited amenities. One of the reasons the City decided to terminate the agreement was Northern's conclusion that a prominent hotel "flag" or brand such as County Inns & Suites would not have interest in a facility of the size supportable in Mound. Country Inns & Suites would offer a highly customizable product, a high degree of marketplace prominence and architectural integrity. A couple of brands the developer suggested would be interested in a Mound location were AmericInn and Super 8. Both of these flags are certainly reputable but the City felt that they would not fulfil the strategic importance of a downtown hotel. This led the City to conclude that it would be wise to wait on the hotel project until other downtown redevelopment raises the viability of a high quality hotel. BLOOMQUIST PROPOSAL The Bloomquists have established a relationship with an individual who is involved in the hotel- motel franchise field, and is prepared to undertake a market and financial analysis of the site to determine its suitability for a hotel. They indicated, however, that they were unwilling to proceed with such work unless the HRA first enters into an exclusive rights agreement with them. It is their initial belief that they would own the development and contract with others to operate and manage the facility. The Bloomquists have also indicated a willingness to permit the HRA to review their financial ability to proceed with such a development. The Bloomquists discussed their desire to construct a very nice, family restaurant with a bar and a • hotel/motel with a small banquet facility and indoor pool with a flag such as AmericInn. The meeting also involved a discussion concerning the location of a farmers' market and banquet- meeting facility and the "park and ride" on the property. The Bloomquists expressed a willingness to find ways to accommodate each on the site, but dial appear to have some concern about locating a farmers market on the site. Although it is far too early to determine the nature or amount of assistance, which might be requested, the Bloomquists did indicate that the requests could include land write-down and tax increment financing. CONCLUSIONS It is apparent to Staff that the Bloomquists are serious about their desire to develop a hotel in Mound. Even though they, directly, do not have experience developing other hotel facilities, if they assemble the right team, we are confident they could bring a project to fruition including the financing, development and management. In making the decision of whether to pursue a preliminary agreement with the Bloomquists, there are a number of factors for the Council to consider: I. The City has received several inquiries from different developers and investors interested in a hotel development. None have progressed beyond preliminary inquiries but the interest is out there none the less. • 2. Staff believes that exploration of a hotel development is about six months too early. If development of the Auditors Road and Langdon Districts is underway by this fall as expected, interest in hotel development by multiple parties could be peaked. The c Memo - Mound HRA June 23, 2000 Page 3 of 3 study done for the site in 1997 concluded that the market would support approximately 40-50 units and a lesser flag. Until further redevelopment in the downtown azea is assured, it is probably that the number of rooms or flag prominence will not increase significantly. 3. The City's agreement with Beard Group affords them 30 days to submit a proposal for development of the hotel site (which the City could accept or reject) before the City can enter into a preliminary agreement with a third party. 4. The Bloomquist's indication that they expect to pursue a hoteUmotel such as AmericInn puts the City in the same stance as taken with Northern Hospitality. 5. If the City pursues a preliminary agreement at this time and a proposal appears promising, it could provide the City with the investment security needed to acquire the Maxwell property. 6. Based on our knowledge of the needed Hotel District soil corrections and the level of financial assistant hotel developments typically require, a hotel development will likely be a financial challenge for Mound's TIF District. 7. A hotel in downtown Mound could be the jewel or the wart of the downtown district. Whether the City pursues an agreement for development of a hotel now or later, Staff strongly recommends that the agreement include specific language about exterior and interior architectural chazacter and integrity. Staff would also recommend that any agreement include the requirement for the developer to work with other site elements suggested in the Hotel District as part of their site plan. In Staff's opinion, a "no hotel" option is better than a "mediocre hotel". Staff will be present at the HRA meeting to discuss the issue. • r DR 6/23/00 Q~r • AGREEMENT THIS AGREEMENT, made and entered into as of the _day of , 2000 by and between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MOUND, a public body corporate and politic under the laws of the state of Minnesota (the "HRA"), and RAY MAR PROPERTIES, INC. a Minnesota corporation ("Ray Maz"). BACKGROUND 1. Ray Mar is the owner of the following described tract of land ("Property"): Lot 1, Block 1, Mound Visions Addition, Hennepin County. 2. At the time the property was platted, Ray Maz agreed to the dedication of a drainage and utility easement over and across the south eight feet of the Property. 3. As consideration for such agreement, the HRA has agreed to certain obligations with respect to a dumpster enclosure to be located within the easement area, all as is fully set out below. RECITALS IN CONSIDERATION of the mutual covenants hereinafter contained, the parties hereto agree as follows: 1. Enclosure Location. Not later than 60 days prior to the completion of construction of the building to be constructed on the Property, the parties shall agree to the location of the dumpster enclosure. Thereafter, the location may be modified only upon the mutual agreement of the parties. 2. Enclosure Design. Within the same time the parties will also agree to the design and the materials. Such agreement will be consistent with any governmental requirements, and will recognize the potential for movement of the location during periods of drainage and utility work. 3. Enclosure Construction. The HRA shall be responsible for construction of the enclosure, and the cost of construction. If the parties agree, Ray Mar may be authorized to contract for the actual construction. The HRA shall be responsible for securing all necessary permits and approvals for construction of the enclosure. Ray Maz will join in any applications to the extent it is required to do so as owner of the Property. Unless the parties agree otherwise, construction of the enclosure shall be substantially completed not later than 4. Removal Following Construction. In the event it should ever be necessary to move the enclosure to permit drainage or utility work, the HRA agrees that it will be responsible the removal and for the cost of any such removal; and will also be responsible, at its cost, for replacing the enclosure at the same location, or to some other location agreed to by the parties, following such removal. ~~ o ,~.~ ~ ~~ r 5. Continuing Agreement. This Agreement is intended to run with the land and be binding on and inure to the benefit of the parties hereto and their successors and assigns. IN TESTIMONY WHEREOF, the parties hereto have set their hands as of the day and year first above written. ~~] [Ray Maz] [Acknowledgments] • •