2000-08-22B~ ~ ~ ~
AGENDA
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
AUGUST 22, 2000
6:30 P.M.
~~~r
6:30 1. EXECUTIVE DIRECTOR'S REPORT
2. APPROVE MINUTES OF AUGUST 8, 2000,
MEETING.
3. REDEVELOPMENT PROCEEDINGS
4. POST OFFICE DEVELOPMENT REPORT
5. LOST LAKE DISTRICT
A. REQUEST AUTHORIZATION FOR
ENVIRONMENTAL TESTING
B. HOTEL DEVELOPMENT
6. JOSEPHINE LONGPRE RENTAL FOREBEARANCE
AGREEMENTS
7. HRA MEETING START TIMES
8. ADJOURN
G'
PUBLIC NOTICE
The August 22, 2000 regular meeting of the Mound
Housing and Redevelopment Authority has been moved to
6:30 p.m. from the usual ?:00 p.m. start time, due to the
size of the agenda.
Kandis Hanson
City Manager
HRA 1~ZINUTES -REGULAR MEETING -August 8, 2000
The Housing and Redevelopment Authority of the City of Mound, Hennepin County,
Minnesota, met on Tuesday, August 8, 2000, at 6:00 p.m., in the Council Chambers at 5341
Maywood Road, in said City.
Those present: Acting Chairperson Mazk Hanus; HRA Board Members: Andrea Ahrens,
Bob Brown, and Leah Weycker. Absent and excused: Mayor Meisel. Also in attendance
were City Manager Kandis Hanson, City Clerk Fran Clark, City Attorney John Dean, James
Prosser of Ehlers & Associates, Bill Beazd of Beard Group, Inc., Mound Visions
Coordinator Bruce Chamberlain, and Recording Secretary Diana Mestad. Others present: Jo
Longmire; Bruce and Patti Dodds; Amy Cicchese; Bill and Dorothy Netka; Lorrie Ham, The
Laker; Peter Meyer; Thomas Walsh; Todd Warner; Jane Cazlsen; Scott Picha; Jason Lawly;
Bob Best; Ron Hiecmer, Rottlund Homes; Richard Palmitor, Rottlund Homes; Tim Whitten,
Rottlund Homes; Bart Roeglin; Phil Mitchum; Tom and Amy Reese; Steve Wagner; Barb
Robert; John Royer; Glenn Smith.
Acting Chairperson Hanus called the meeting to order at 6:05 p. m.
TAR INCREMENT FINANCING.
1.01 EXECUTIVE DIRECTOR'S REPORT.
Pinky Charon, Executive Director, was not present.
MOTION by Weycker, seconded by Brown with an amendment to pay any
emergency bills, to table this item until the next HRA meeting. The vote was
unanimously in favor. Motion carried. 4-0.
1.1 APPROVE MINUTES OF TULY 25. 2000.
MOTION, by Brown, seconded by Weycker to approve the Minutes of the July
25, 2000 HRA meeting. The vote was unanimously in favor. Motion carried. 4
0
1.2 BILL BEARD OF BEARD GROUP INC. ON DOWNTOWN
REDEVELOPMENT.
Bill Beazd addressed the HRA Board and stated that he was present to answer any questions.
Mr. Beard provided the Boazd with a handout that recapped the numbers that brought Beard
Group to their decision. Mr. Beazd reviewed the numbers for the HRA. He stated there is a
$13 million difference between the cost of building the project and the actual value of the
finished project. Mr. Beard stated that the Beazd Group has tried various ways to close the
Mound HRA Minutes August 8 2044
gap between these numbers, but was not able to do so. Mr. Beard stated that the Beard
Group is interested in moving forward with this project if the numbers can be worked out.
Acting Chairperson Hanus stated that the public should be brought up to date on the current
condition of the redevelopment program.
Jim Prosser, Ehlers & Associates, stated that he would address this issue. Mr. Prosser stated
that the redevelopment process includes the following steps:
1. Looking at developing a general concept.
2. Marketing the concept to determine the interest.
3. The development agreement phase.
4. The construction phase.
Mr. Prosser stated that at each point in the redevelopment process, an assessment is needed
to determine if the next phase can be started. The Mound Visions Plan is currently at the
second phase and the Beard Group has determined it is not feasible to continue with the
redevelopment as it is currently planned.
The City Attorney asked Mr. Prosser for a recommendation about how the City should
proceed at this point. The City Attorney stated that he felt that Mr. Beard had done a good
job of summarizing the amount of work done to this point by a number of parties to try to
make this work.
Acting Chairperson Hanus stated that it is important to note that this is not an unusual
occurrence in this type of a complex project. Acting Chairperson Hanus stated that he felt
that the City could still try to work this project out with the Beard Group and that there was
a need to determine what to do next. ~ -
Acting Chairperson Hanus wanted to clarify for the public that no redevelopment agreements
are currently in place with the exception of the agreement involving the hardware store. He
stated that at this time, the door is somewhat open for those who wish to do their own
redevelopment or to propose a different plan for the redevelopment. He further stated that if
someone wished to propose using TIF funds for doing their own redevelopment, now is the
time to speak to the City. Acting Chairperson Hanus also stated that proposals would still
need to conform to the Mound Visions Plan.
Board Member Brown stated that he was unhappy with the Beard Group's decision being
made known at the last minute instead of having an ongoing discussion about this possibility.
Board Member Weycker stated that this would allow an opportunity to redo the development
plan and still work with the Beard Group to bring costs down. She suggested that there
would now be an option for some businesses to redevelop on their own.
,~
2
1Vlound HRA Minutes. August $. 2000
Board Member Brown stated that he wanted other developers made aware of the potential t0
work with the City on this project.
Mr. Prosser stated that he wanted to reinforce that this is not an unusual situation and that
there is a standard course of action that has been proven to be effective. In terms of range,
the City could consider everything from re-planning to just foregoing the redevelopment.
Mr. Prosser's recommendation is to talk to other developers and to have them look at the
basic concept and get their assessments. This would be an unofficial process and no
proposals would be submitted. If some developers were interested in the project, they then
would be invited to prepare formal proposals to present to the City.
Mr. Prosser stated that it would be possible to skip some of the steps covered previously
such as land cost, public improvements, etc. He felt this could be completed within a six
month period and quite possibly the information would be available in 90 days. Mr. Prosser
stated that because of the disruption to the businesses in the area, it is necessary to move
quickly through this process. He felt that by week's end the next step could be identified
and the process could be moved forward.
Mr. Prosser stated that public input through an open house format at the time the new
developers' information is available would be appropriate. He also stated that he felt that
would be the time to ask the public to submit ideas for the redevelopment.
Acting Chairperson Hanus asked for clarification of the timing for introducing new
developers. Mr. Prosser stated that starting information discussions immediately would be
best. He further stated that the Beard Group has a great deal of time and money invested in
this project and will want to provide suggestions on how to proceed.
Board Member Brown asked whether these would be the same developers that were involved
at the beginning of the process. Mr. Prosser stated that at this stage the more developers the
better, but experience in this type of a project is best as there is a need to reduce the time
from the idea stage to the implementation stage.
Ken Custer, Glass Plus, stated that he had heard that the figure of $18 per square foot of
retail space needed to be brought down to $12 per square foot and asked Mr. Beard if retail
space was not working with TIF as well as residential space. Acting Chairperson Hanus
stated that this was a detailed question that would be discussed in the future.
Mr. Custer stated that he would like to develop his site and he wanted to know how the
numbers worked. Mr. Beard explained that they had broken the project apart to try to make
the numbers work, but it did not help the situation. The City Attorney stated that on several
occasions, the City had tried to separate the projects, but that the Beard Group was not able
to do so. Mr. Beard offered to call Mr. Custer and go over the numbers with him.
3
Mound HRA Minutes. Aumtst 8. 2000
MOTION by Brown, seconded by Weycker with the amendment to add a forum
for public input, to direct Staff to invite qualified redevelopers to review the
Mowed Visions Plan and assess the ability to proceed with it and to submit
proposals for review along with the recommendation to invite the developers
involved in the first proposal process along with any other interested developers.
The vote was unanimously in favor. Motion carried. 4-0.
1.3 DISCUSSION OF OFFICE OF STATE AUDITOR LETTER REGARDING
WFSTONKA SCHOOL DISTRICT PARCELS
The City Attorney stated that he is working on this and does not have any new information to
discuss at this time. He feels that before the City commits additional resources to this
project, it would be best to see how the referendum is decided and to determine what the
nature of interest in the level of development is.
Board Member Ahrens stated that she was in favor of adopting the City Attorney's
recommendation not to do anything further at this point. The Board Members agreed with
this.
1.4 ~NFORMATION/MISCELLANEOUS.
A. FYI: CITY ATTORNEY'S LETTER ON ~ + + UMS.
B. FYI: DOCUMENTATION ON HOTEL REDEVELOPMENT CONTACTS.
C. MIIVIBER REQUEST: RETYPED DOCUMENT FROM JULY 25, 2000
MEETING.
D. ARTICLE: MULT-FANIILY OUTLOOK
MOTION by Ahrens, seconded by Brown to adjour~'i the meeting at 6:40 p.m.
The vote was unanimously in favor. Motion carried. 4-0.
Attest: City Clerk
Kandis Hanson, City Manager
4
~08J17/2000 12:52 612-315 1836 STS CONSULTANTS ~' ~ PAGE 02
n~~
;. ~ 1
~.~-.~ ''
STS Consultants, Ltd. • •
Confirmation and Agreement for Services •
CLIfiNT: Ms. I{andis Ranson. City Manager DATE: August 17.2000
Ciry of Mound
5341 Mayu+ood Road
Mound, MN 553b4 STS Proposa1965BA
ltE: Phase I Environmental Site Assessment - Lost Lake Dump Siu in Mound. Mitttusota
This Confirmation and Agreement for Services confttms the authorization by the City of Mound ("Ciient'~ of
services in conjunction with the above-referenced pTOjcct The services authorized are described below:
STS Consultants, Ltd. will perform a Phase I Environmental Site Assessment (ESA) in general accordance with
ASTM Method E ] 527-47 for the Lost Lake Dump site south of Shoreline Drive in Mound, Minnesota. Ttte Phase i
ESA will include review of available Minnesota Pollution Cotmot Agency files for the dump. STS will perform the
Phase I ESA for a lump sum fee of $1,850.40.
If services to be provided wader this Agreement require
the agents, employees, or contactors of STS to enter ituo
dte Project site, Clicm shall provide right-of-access to the
site to STS. its employees, agents wad conaactors, to
conduct the planned field observations or services.
The tercets and conditions on the reverse of this page are
expressly incorporated into and are an integral pats of our
contract for services. Please indicau your acceptance of
this Confirmation and Agreement by having an authorized
representative of your firm execute one copy and return it
to the undersigned prior co commencement of ST5'
services.
If in the reasonable judgment of STS, the scope or nature
of the services w be performed by STS, in respca to the
above-referenced pmject, change or deviate taatcrially
from the scope or nature of the services described about,
STS may at its discretion, suspend performance of iu
xrvicos, until a Written agreement superseding this
Agreement and adjusting the scope, schedule, fees, and
terms and conditions has been execuud. If such a
superseding agreement is not agreed to within a reasonable
time. STS may terminate this Agreement,
STS C ltants, Ltd.
SiQnuttre
C*~!+~ 1. Rathbun Senior Soil Scientist
None do Title
Ataettst 17 2000
Date
P665A077.DOC
Ciry of Mound (Client)
Signature
Name & Title
Dau
STS Consultants, Ltd.
Consulting Engineers
10900 - 73" Ave. N., Suite 150
. Maple Grove, MN 5536t;-55x7
y63r315$308 !FAX 783815-1838
~ ,« L• 1 ~
f
~ti-1
EXECUTION DRAFT
AGREEMENT
THIS AGREEMENT, made and entered into this day of
by and between the HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF MOUND, MINNESOTA, a Minnesota
public body corporate and politic (the "HRA") and JOSEPHINE LONGPRE, a single
person (the "Owner").
WITNESSETH:
RECITALS
I. The HRA has been duly organized and established pursuant to Minnesota
Statutes Chapter 462, (The "Act") and is empowered to carry out certain activities within
its area of operation.
2. The City of Mound has adopted the Tax Increment Financing Plan for Tax
Increment Financing District No. 1-2 within Development District No. 1.
3. The Owner is the owner of real property which lies within the proposed
District which has a street address of:
a. 2300 Commerce Boulevard (Basement)
b. 2304 Commerce Boulevard (Apt. 1)
c. 2306 Commerce Boulevard
(Collectively, the" Scheduled Properties")
4. The Scheduled Properties, which have been used as rental property, are
currently vacant.
5. The HRA has made no decision regarding whether or not to acquire the
Scheduled Properties for the purpose of redevelopment or for any other purpose.
6. The Owner and the HRA desire to reach an understanding regarding the
re-renting of the Scheduled Properties, and the rent forbearance allowance that the HRA
will provide the Owner in the event that it, or a developer designated by the HRA,
acquires the Scheduled Properties.
7. This agreement constitutes that understanding.
JBD-171194dL
MU195-2
1
NOW THEREFORE, in consideration of the premises and mutual obligations of
the parties contained herein, the parties do hereby represent, covenant and agree with
each other as follows:
Section 1. HRA reQresentations. The HRA represents that it has the power to
enter into this agreement and to carry out its obligations hereunder.
Section 2. Owner representations.
1. The Owner has the power to enter into this agreement and to carry out its
obligations hereunder.
2. The Scheduled Properties, although habitable, are either: i. currently
vacant but were occupied by tenants continuously for asix-month period ending not
longer than 100 days prior to the date of this agreement; or, ii. have been included due to
special circumstances reviewed and accepted by the HRA, and/or by a developer
designated by the HRA.
3. The Scheduled Properties were occupied by tenants for at least 30 months
during the last three years.
4. The Owner has supplied the HRA with accurate rent information for the
relevant periods, and represents that such rent was paid in full and constitutes the fair
market rent for the Scheduled Properties.
Section 3. Rent Forbearance Payment. Subject to the preconditions hereinafter
provided, the HRA agrees to pay the Owner rent forbearance payments as follows:
a. 2300 Commerce Boulevard (Basement)-$210 per month
b. 2304 Commerce Boulevard (Apt. 1)-$370 per month.
c. 2306 Commerce Boulevard $350 per month
which constitutes an amount equal to the average monthly rent received by the Owner
for the 6-month period ending on the date the last tenant vacated the Scheduled
Properties. The amount of each monthly payment will be credited to Owner commencing
on the date of this agreement as to 2306 Commerce Boulevard, and as of March 28, 2000
as to 2300 Commerce Boulevard (Basement), and 2304 Commerce Boulevard (Apt 1),
and each month thereafter for the term of this agreement. Credited amounts will accrue
interest at the annual rate of 4%.
Section 4. Preconditions. The obligation of the HRA to make the rent
forbearance payment will terminate as to any of the Scheduled Properties if all of the
following preconditions do not occur:
JBD-1711942 2
MU195-2
1. By not later than January 1, 2001, unless extended by the written
ageement of the parties, the HRA undertakes, either by the tender of a Purchase
Agreement, or the commencement of condemnation, to acquire such Scheduled Property.
2. Such Scheduled Property remains continuously vacant and unleased.
Section 5. Ear1X Termination. In the event that prior to the date contained in
Section 4 (1) above the HRA determines, as to any Scheduled Property, that it will not
seek to acquire such Scheduled Property, it shall notify the Owner in writing of that
determination, whereupon, this agreement shall terminate as to such Scheduled Property,
and the HRA shall have no obligation to make the rent forbearance payment to the Owner
as to such Scheduled Property. The agreement may also be terminated by the HRA at
any time for a material misrepresentation by the Owner under Section 2 of this
agreement, but only to the Scheduled Property to which the misrepresentation relates.
Section 6. Owner and HRA Responsibilities. Owner acknowledges that HRA
shall have no obligation to occupy the Scheduled Property during the term of this
agreement, to protect or maintain or repair the Scheduled Property during such term, to
pay for any utility service, taxes, or to assume or undertake any obligation ordinarily
undertaken by tenants, it being understood that this agreement does not create alandlord-
tenant relationship between Owner and the HRA.
Section 7. Indemnity. The Owner agrees to indemnify and save harmless the
HRA from any claims by third parties for relocation benefits or assistance based
occupancy of the Scheduled Property for any period from 75 days prior to the date of this
agreement to the date of payment of the rent forbearance payment.
Section 8. Closin Unless the parties agree otherwise, the rent forbearance
payment for any Scheduled Property shall be paid to Owner on the date that title to such
Scheduled Property passes to the HRA, or to a developer designated by the HRA to
receive title to such Scheduled Property.
Section 9. Notices and Demands. Any communication under this Agreement by
either party to the other shall be sufficient if given or delivered by registered or certified
mail, postage prepaid, return receipt requested, or delivered personally:
As to HRA: Mound Housing and Redevelopment Authority
5341 Maywood Road
Mound, MN 55364
Attention: Executive Director
As to Owner: Josephine Longpre
2631 Granger Lane
Mound, MN 55364
JBD-171194./2 3
MU195-2
Section 10. Binding Effect. This Agreement shall run with the land and be
binding on the parties hereto and their respective assignees and successors.
Section 11. Other Agreements. This Agreement supercedes any previous
agreement of the parties relating to any of the Scheduled Property.
Section 12. Additional Property. The parties may from time to time agree to add
additional property to this agreement.
JBD-171194/2 4
MLJ195-2
IN WITNESS WHEREOF, the parties hereto have set their hands of the day,
date and year first above written.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF MOUND
By:
Its:
By:
Its:
Josephine Longpre
STATE OF MINNESOTA
ss
COUNTY OF HENNEPIN
The foregoing instrument was acknowledged before me this day of
2000 by and
the and
respectively of The Housing and Redevelopment
Authority in and for the City of Mound a public body corporate and politic under the laws
of Minnesota by and on behalf of said public body.
Notary Public
STATE OF MINNESOTA
ss.:
COUNTY OF
The foregoing instrument was acknowledged before me this day of
2000, by Josephine Longpre, an individual.
Notary Public
JBD-171194dL 5
MU195-2
- ~-= _
AGREEMENT
THIS AGREEMENT, made and entered into this 28~' day of March , 2000 by
and between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF MOUND, MINNESOTA, a Minnesota1/ public body corporate and
politic (the "HRA") an~ JOSEPHINE LONGPRE, a privafte land owner (the "Owner").
WITNESSETH:
RECITALS
id
1. The HRA has be n duly c
Statutes Chapter 462, (The "Act' and is
its area of operation.
2. The City of Mound ha
Increment Financing District No. 1-2
3. The Owner is the ow
District which has a street address o
legally described in the attached Ex~f
and established pursuant to Minnesota
ed to carry out certain activities within
ado d the Tax Increment Financing Plan for Tax
ri n Development District No. 1.
of real property which lies within the proposed
2 4 COMMERCE BOULEVARD, and which is
it A ("Property'
4. The Property, whi has been used as rental property, is currently vacant.
5. The HRA has ade no decisio regarding whether or not to acquire the
Property for the purpose of re evelopment or fo any other purpose.
6. The Owner d the HRA desire to
re-renting of the Property and the rent forbearance
the Owner in the event at it acquires the Property.
7. This a Bement constitutes that unde
NOW TH
the parties contai
each other as folk
:FORE, in consideration of the
herein, the parties do hereby 1
Section
enter into this
JB0.171194v1
MlJ 195-2
an understanding regarding the
ance that the HItA will provide
and mutual obligations of
covenant and agree with
HRA representations. The HRA represents
;went and to carry out its obligations hereund~
1
it has the power to
Section 2. Owner representations.
1. The Owner has the power to enter into this agreement and to carry out its
obligations hereunder.
2. The Property, although habitable, is currently vacant but was occupied by
tenants continuously for asix-month period ending not longer than 100 days prior to the
date of this agreement.
3. The Property was occupied by tenants for at least 30 months during the
last three years.
4. The Owner has supplied the HRA with accurate rent information for the
relevant periods, and represents that such rent was paid in full and constitutes the fair
market rent for the Property.
Section 3. Rent Forbeazance Payment. Subject to the preconditions hereinafter
provided, the HRA agrees to pay the Owner a rent forbeazance payment of FOUR
HUNDRED DOLLARS. ($400) per month which constitutes an amount equal to the
average monthly rent received by the Owner for the 6-month period ending on the date
the last tenant vacated the Property. The amount of each monthly payment will be
credited to the Owner commencing on the date of this agreement and each month
thereafter for the term of this agreement. Credited amounts will accrue interest at the
annual rate of 4%.
Section 4. Preconditions. The obligation of the HRA to make the rent
forbeazance payment will terminate if all of the following preconditions do not occur:
1. By not later than September 28, 2000, the HRA undertakes, either by the
tender of a Purchase Agreement, or the commencement of condemnation, to acquire the
Property.
2. The Property remains continuously vacant and unleased.
Section 5. Eazly Termination. This agreement shall terminate and the HRA shall
have no obligation to make the rent forbearance payment to the Owner if one of the
following events occur prior to the date contained in Section 4 (1) above:
1. The HRA determines that it will not seek to acquire the Property,
whereupon, it shall notify the Owner in writing of that determination.
2. A material misrepresentation is made by the Owner under Section 2 of this
agreement.
3. The Owner leases the Property or a portion thereof to a third party,
whereupon, it shall notify the HRA in writing of that occurance.
JBD-17119av1 2
MUI95-2
~,
Section 6. Owner and HRA Responsibilities. Owner acknowledges that HRA
shall have no obligation to occupy the Property during the term of this agreement, to
protect or maintain or repair the Property during such term, to pay for any utility service,
taxes, or to assume or undertake any obligation ordinarily undertaken by tenants, it being
understood that this agreement does not create alandlord-tenant relationship between
Owner and the HRA.
Section 7. Indemnity. The Owner agrees to indemnify and save harmless the
HRA from any claims by third parties for relocation benefits or assistance based
occupancy of the Property for any period from 100 days prior to the date of this
agreement to the date of payment of the rent forbearance payment.
Section 8. Closin . Unless the parties agree otherwise, the rent forbearance
payment shall be paid to Owner on the date that title to the Property passes to the HRA,
or to a developer designated by the HRA to receive title to the Property.
Section 9. Notices and Demands. Any communication under this Agreement by
either party to the other shall be sufficient if given or delivered by registered or certified
mail, postage prepaid, return receipt requested, or delivered personally:
As to HRA: Mound Housing and Redevelopment Authority
5341 Maywood Road
Mound, MN 55364
Attention: Executive Director
As to Owner: Josephine Longpre
2631 Granger Lane
Mound, MN 55364
Section 10. Binding Effect. This Agreement shall run with the land and be
binding on the parties hereto and their respective assignees and successors.
. ~, ~.~
Jso-t~~l9avt
trtui9s-2
~ ~ ~ r
IN WITNESS WHEREOF, the parties hereto have set their hands of the day,
date and year first above written.
OWNER
.-. - ~.p
By: ^' ~
osephine Longpre
STATE OF MINNESOTA
COUNTY OF HENNEPIN
Ss
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF M
By:
Its:
Its:
The foregoing instrument was acknowledged before me this s2'~ day of
2000 by ~ f~- ~~ and
' the and
«.a
~~ ~ c~~t~~ respectively of Th Housing and Redevelopment
Au ority in and for the City of Mound a public body corporate and politic under the laws
of Minnesota by and on behalf of said public body.
h ~~
1~r~oMi1111~~111~ai~,~ Notary Public
M.• I MD UND 199-241 DOCSIIong_agl. doc
c
raai~~ i9a~~ q
MU195-2
t
t
AGREEMENT
THIS AGREEMENT, made and entered into this 28~' day of March , 2000 by
and between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF MOUND, MINNESOTA, a Minnesota public body corporate and
politic (the "HRA") and JOSEPHINE LONGPRE, a private land owner (the "Owner").
WITNESSETH:
RECITALS
1. The HRA has been duly organized and established pursuant to Minnesota
Statutes Chapter 462, (The "Act") and is empowered to carry out certain activities within
its area of operation.
2. The City of Mound has adopted the Tax Increment Financing Plan for Tax
Increment Financing District No. 1-2 within Development District No. 1.
~ 3. The Owner is the owner of real property which lies within the proposed
~ District which has a street address of 2300 COMMERCE BOULEVARD (basementl, and
which is legally described in the attached Exhibit A. ("Property")
4. The Property, which has been used as rental property, is currently vacant.
5. The HRA has made no decision regarding whether or not to acquire the
Property for the purpose of redevelopment or for any other purpose.
6. The Owner and the HRA desire to reach an understanding regarding the
re-renting of the Property, and the rent forbearance allowance that the HRA will provide
the Owner in the event that it acquires the Property.
7. This agreement constitutes that understanding.
NOW THEREFORE, in consideration of the premises and mutual obligations of
the parties contained herein, the parties do hereby represent, covenant and agree with
each other as follows:
Section 1. HRA representations. The HRA represents that it has the power to
enter into this agreement and to carry out its obligations hereunder.
JBD-171194v1 1
MU 195-2
. ,
Section 2. Owner representations.
1. The Owner has the power to enter into this agreement and to carry out its
obligations hereunder.
2. The Property, although habitable, is currently vacant but was occupied by
tenants continuously for asix-month period ending not longer than 100 days prior to the
date of this agreement.
3. The Property was occupied by tenants for at least 30 months during the
last three years.
4. The Owner has supplied the HRA with accurate rent information for the
relevant periods, and represents that such rent was paid in full and constitutes the fair
mazket rent for the Property.
Section 3. Rent Forbearance Pa ment. Subject to the preconditions hereinafter
provided, the HRA agrees to pay the Owner a rent forbearance payment of TWO
HUNDRED TEN DOLLARS, ($210) per month which constitutes an amount equal to
the average monthly rent received by the Owner for the 6-month period ending on the
date the last tenant vacated the Property. The amount of each monthly payment will be
credited to the Owner commencing on the date of this agreement and each month
thereafter for the term of this agreement. Credited amounts will accrue interest at the
annual rate of 4%.
Section 4. Preconditions. The obligation of the HRA to make the rent
forbearance payment will terminate if all of the following preconditions do not occur:
1. By not later than September 28, 2000, the HRA undertakes, either by the
tender of a Purchase Agreement, or the commencement of condemnation, to acquire the
Property.
2. The Property remains continuously vacant and unleased.
Section 5. Eazly Termination. This agreement shall terminate and the HRA shall
have no obligation to make the rent forbearance payment to the Owner if one of the
following events occur prior to the date contained in Section 4 (1) above:
1. The HRA determines that it will not seek to acquire the Property,
whereupon, it shall notify the Owner in writing of that determination.
2. A material misrepresentation is made by the Owner under Section 2 of this
agreement.
3. The Owner leases the Property or a portion thereof to a third party,
whereupon, it shall notify the HRA in writing of that occurance.
~sn-in 19a~1 2
M[7195-2
L-.n.. n ..<..... 1.
~ ~ 4
IN WITNESS WHEREOF, the parties hereto have set their hands of the day,
date and yeaz first above written.
OWNER
By: ~- ~~ .~.~
sep a Longpre
STATE OF MINNESOTA
COUNTY OF HENNEPIN
Ss
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF MO
By:
Its:
By: '
Its:
The foregoing instrument was acknowledged before me this ~~ day of
2000 by tea- _ and
' the U and
a-r, ~c~.~. respectively of The ousing and Redevelopment
Au ority in and for the City of Mound a public body corporate and politic under the laws
of Minnesota by and on behalf of said public body.
h• ANtlnt f~
Yl-6pisii.~t.~
M.• IMOUNDI99-241DOCSIlong_agl.doc
C
Notary Public
Jsn-tit i9a~~ 4
MU 195-2