2001-02-13,.. ~ ~ r
~-
AGENDA
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
FEBRUARY 13, 2001
6:30 P.M.
6:30 1. OPEN MEETING
2. APPROVE AGENDA, WITH ANY AMENDMENTS
3. APPROVE MINUTES: DECEMBER 12, 2000
JANUARY 23, 2001
4. LONGPRE PROPERTY: FINAL APPROVAL OF PURCHASE
OF COMMERICAL PROPERTY
5. GRAMERLCY CORP: APPROVAL OF PRELIMINARY
PRELIMINARY DEVELOPMENT AGREEMENT
6. POST OFFICE DEVELOPMENT: APPROVAL OF OPTION
AGREEMENT
7. ADJOURN
MOUND HOUSING AND REDEVELOPMENT AUTHOURITY
COMMISSION MINUTES -DECEMBER 12, 2000
The Mound Housing and Redevelopment Authority of Mound, Hennepin County,
Minnesota, met in regular session on Tuesday, December 12, 2000, at 6:30 p.m., in the
Council Chambers at 5341 Maywood Road, in said City.
Those present :Chairperson, Pat Meisel; Commissioners: Andrea Ahrens, Bob Brown,
Mark Hanus, and Leah Weycker. Also in attendance was City Attorney John Dean.
APPROVE AGENDA
The Mayor stated that the wrong minutes (City Council Minutes for 11-28/2000) were in
the agenda and will be replaced with the correct minutes for the next meeting.
MOTION to approve the agenda by removing the wrong minutes(item 4.), was made by
Ahrens, seconded by Brown. The vote was unanimous in favor. Motion carried.
3.0 Listing of the Bills for Indian Knoll Manor totaling $ 18,296.81
Hanus moved and Weckyer seconded the recommendation. Motion carried.
4.0 Public Hearing on Business Subsidy Agreement with MetroPlains
The City Attorney explained document changes.
In place of 3 million is 1.8 million
Added one employee and 125% of Federal minimum wage provision.
Change wording of `Article 9 here ofl to `Article 9 of the' contract
Comments & Suggestions from Citizens present on the above item.
There were none.
Brown moved and Ahrens seconded the follow resolution:
RESOLUTION #00.118 RESOLUTION ADOPTING BUSINESS
SUBSIDY AGREEMENT.
The vote was unanimous in favor. Motion carried.
Motion to adjourn by Ahrens, seconded by Brown. Motion carried.
Acting City Clerk
Chairperson, Pat Meisel
Mound HRA Minutes
January 23, 2001
MINUTES
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
JANUARY 23, 2001
6:30 PM
Call to Order
Chair Meisel called the meeting to order at 6:30 p.m.
2. Oaths of Office
Meisel, Anderson and Meyer were given the oath of office.
3. Approve Agenda
Meisel asked for a motion for approval of the agenda, to which Meyer requested to add
an item to the agenda to reconsider the rezone approval for MetroPlains Development.
City Attorney John Dean commented on reasons not to reconsider the MetroPlains
rezoning application. He recommended that it not be added to agenda. Meyer then stated
reasons for reconsideration: the "but for" test, inappropriate use of land, Purchase
Agreement does not include TIF, and certain conditions as listed in the Code pertaining
to conditional uses. Motion by Meyer to reconsider the rezoning application of
MetroPlains Development by adding it to the agenda. Motion died for lack of a second.
Meyer made motion to approve agenda for the evening. Hanus seconded the motion. All
were in favor. Motion carried.
4. Executive Director's Report
In response to request for a motion by Executive Director Charon to approve the bills for
Indian Knoll Manor, Hanus made the motion. Meyer seconded the motion. All were in
favor. Motion carried.
Executive Director Charon submitted an oral financial report. Charon also reported that
the yearly apartment inspection has been completed. She is formulating a plan to revamp
the building. Repairs are needed due to age of building. She is investigating taking out a
mortgage against building.
Charon discussed her wish to change her hours to four days/thirty hours per week due to
forthcoming upgrades to building. Meyer made motion for her hours to increase to thirty
hours per week, to be reviewed in a year. Hanus seconded the motion. All were in favor.
Motion carried.
Insert Resolution #0l -01 H
Mound HRA Minutes
January 23, 2001
Charon discussed pursuing a health insurance plan for her maintenance manager. Pauline
Payne was introduced as the tenant representative for Indian Knoll Manor.
5. Ap>aroval of Minutes
Hanus made a motion for the approval of the minutes. Seconded by Brown. All were in
favor. Motion carried.
6. Longpre Property
Brown made a motion for the rent forbearance agreement for Longpre property to be
extended to July 1, 2001. Anderson seconded the motion. All were in favor. Motion
carried.
City Attorney John Dean recommended that the Longpre property be purchased for
$230,000. Project Manager, Jim Prosser made recommendations on how to finance the
purchase. They included: 1. Borrow funds from existing sources; 2. Issue TIF bonds; but
only issue bonds if you are going forward with redevelopment. He advised that the
property would be more expensive to acquire later. Jo Longpre commented on the
method of payment and closing date. Issues were addressed.
Brown made motion that HRA purchase Longpre property for $230,000 with method of
payment to be negotiated, with the final approval of the agreement at the February 13,
2001 meeting. Hanus seconded. All were in favor. Motion carried.
7. Gramercy Corporation
Meisel stepped down as chair due to perceived conflict of interest regarding Gramercy
Corp. Hanus took over as chair. Vision Coordinator Chamberlain gave a summation of
Mound Visions over the last ten years. Mike Conlan, President of Gramercy Corp gave a
review of project components and stated that if it can be financed it will be done. Meyer
made a motion to extend the preliminary agreement up to 30 days, with written
agreement to be considered at the February 13th meeting. Brown seconded the motion.
All were in favor. Motion carried. Chair Meisel was restored to her seat.
8. Post Office Update
Vision Coordinator Chamberlain gave an update on the Post Office redevelopment
project, indicating that it is on schedule and will break ground in the spring. There is a
possibility this post office will be in a contest for its architectural significance.
Mound HRA Minutes
January 23, 2001
9. Adjournment
Chair Meisel made motion to adjourn meeting at 7:35 p.m. Meyer seconded. All were in
favor. Motion carried.
Pat Meisel, Chair
ATTEST:
Kandis Hanson, Executive Director
~T„"-.
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Execut+on Copy
PURCHASE AGREE~IE'~T Mound. Minnesota
.2(lU 1
1N CONSIDER.ATION OF THE MUTUAL NO~'~~DNREDE LELOPMENT
OBLIGATIONS CONTAINED HEREIN, the HOt51
AliTHORITY I?~ AND FOR THE CITY OFcMO ~ND•Ma ~noodoRc~adb,'~'i~ nd~?"iirnrne`~ta
and politic. having sts principal placE of hu.tne_. r £n`. situated in the County of
55364 ("BUYER"). hereby asrees to the purchase of pop
Hennepin. State of `tinnesota_ and le~all}- described~ta ~f oration ha n~ its prin pa] office.
i~'[OUvD DRYGOOl~S COMPAi\Y. INC.. a Minnes p said SELLER a~recin~ to cell
at ~6?l Granter Lane. Mound Minnesota 553G4 ("SELLER")..' -
such Property to BCJYER for the sum of Two Hundred `Chirty 7hnusand Dollars ($23(3.4U(~.~0)
which BL-YER aRree~ tc pay in the follo~'in~ manner:
Sevcnt}! Thousand Dollars {S%().(1(1~.U~) as earnest mc~ne~c u cedccuprsuant• to the
a.
hereh~• acknou•lEdged. and which shall he held rind di. p
terms ~~f this Agreement.
r. The am aunt due and payable to SELI~ER`oUdEFa deinnctash for bencerti~iedeor
Forb~~lrance Agreement datEd Janua y
cashier' c check or t~•irc transfer of immediatel}~ ati-ailablE funds on the closing
date. and 5160.Ci~U.O~. to~'ether with interest at the annual rate ofd (l 9~~ from the
datE of closing. payable on. or at BUYER'S option before May 15. 2t~Ql. In no
E~~ent. howe~~er shall said payment be made pnor to the d~lte of closing.
THE CO?~DITIONS AND TERMS OF THIS PURCHASE AGREEMENT INCLUDE
THE FOLLO~'~ i,~'G:
1. DEEDm1ARRETABLE TITLE: Subect`t aAearoa ty deedv on £Eng marketh lc utle
to execute and deli~'cr at the time of pit . in_
to said Property_ subiect only to the follo~'in= exceptions
a. Buildine and zoning laws. ordinances. state and federal re~ulatinns. and
b Easelnents, reser'ations and restrictions ~f record. if any.
POSSESSIc)'~: SELLi/R a~rECS to deli~'cr possession not later than the date ~f closin;;.
3. COSTS AND PRO-RATIONS: SELLER and BUYER a~-tee to the follo~~~ng pr~~-
ratians and allocations of costs regarding this .4~reement:
Deed Tax SELLER shall pay all state deed tax regarding a warranty Deed and
a ~_.
any ether documents necessar;~ to place retard tills in the condition ~ti'arranted and
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to t,c deli~•ered by SELLER under this Agreement.
Recording Costs. BUYER shall ba SELLER tof BUYER.g ~1 other documents
includttt~ the Deed to be d~li~~ered y
Taxes and :lssessment.~. SbLL1/R shall par• all real estac essme~t~ ccnif edafor
in the rears prior to the yEar of closing. and speetal
paymetti with such taxes, tocether withe 1N1 p fncloc n~nand legs ial cassessments
estate taxes due and payable In the y
certifiEd for payment therewith, will he prorated as of the date of closing.
BUYER will assume all specia] assessments le~'ied or pending with respect to the
Pmpem~ on and after the date of closing.
SELLf;R makes no representation or warranty whatco`t` door le ~ a agaian t he
of real estate taxES or assessments which shall be as. e.
Property sursequent to the date of this Purchase Agreement.
Title Insurance Commitment Costs. SELLER will pay' Pro ert ede crtbed n
obta:ntng the title insurance commitment with respect to the p
Secttor: 4.
e. Title insurance Prerltium. BtTYER shall pa}~ all premiums requirEd for any
o~~ne;'s or mongagee's title insurance policy issued in conncetion with this
' " transaction.
f. Closing Costs. SELLER and Bn1Y~ h res lect to the t ansac vn co templated
closing fee payable to Title Compa } P
by' this .AQreemertt
d T1-ILE: ~'~~ithtn a reasonable time after acceptance of this Purchase Agreement.
SELLER ~h.~tl furnish BUYERhasinlQtl lcun.urance for thenPropEn}n~ BUYI/RF hall
BUYER is responsible for pure g
have 30 business days after receipt of the commitment (rut not less than 45 days after the
date of this Purchase Agreement} to examinE the came and to deliver wntten obiections to
title. if any. to SELLER. SELLER shall rc al~owe oblOt<ataon tof do she making of
BUYER' S c,ft~ectlons to cure the same. rut shall ha e n _
specified under Section 1 d shall be postponed t~ the extent
Pendlne such cure. the closint
necessar~r to accommodate such cure. Upon sSectionrcl4h ofl{b)nthehf~rst rusilness day
later of (a) the closing date specified under
occurring 1(- days after the date such cure is completed.
if such curs is not completed within said 6O day period. BUYER Shall hay°e the option to
do ariy of the follow°in~:
a- Terminate this Agreement, whereupon the earnest money will be returned to
BL?YER.
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b. Waive one or more of the objections and proceed to closing.
5. DEFAULT: If either party shall default in any of the covenants contained in this
Agreement and continue into default for a period of thirty days, then and in that case, the
other party may terminate this Agreement, time being of the essence hereof. Either party
shall have the right of enforcing the specific performance of this Agreement provided this
Agreement shall not be terminated as aforesaid, .and provided action to enforce such
specific performance shall be commenced within six months after such right of action
shall arise.
6. CONTINGENCIES: This Purchase Agreement is subject to the following
contingencies:
a. Environmental. BUYER shall have a reasonable time from the date of this
agreement to conduct all necessary inspections of the Property, including, without
limitation, soil borings, soil and water sampling and testing, and trenching, and to
prepare or cause to have prepared all at BUYER's sole expense, such reports and
studies as may in the BUYER"s judgment be necessary to determine whether the
Property is free of contamination or pollution; or, if contamination or pollution is
found to be present, what remedial actions are likely to be required. BUYER may
terminate this agreement if it is not satisfied that the Property is free of such
pollution or contamination; or if polluted or contaminated, it is not satisfied, in
BUYER' S sole discretion, that the nature, timing or cost of any likely program for
remedial action, including, without limitation, those required for the Minnesota
Voluntary Investigation and Clean-up Program are consistent with BUYER's plans
and budget for reuse of the Property.
b. Soils. BUYER shall have a reasonable time from the date of this agreement to
conduct all necessary inspections of the Property, including, without limitation,
soil borings, soil sanpling and testing, and trenching and to prepare or cause to
have prepared, at BUYER's sole expense, such reports and studies as may in
BUYER's judgment be necessary to determine, in BUYER'S sole discretion, that
the condition of the soils is such as to permit the use of the Property for its
intended purpose, with due regard to the timing, nature and cost of necessary
corrective actions. The BUYER may terminate this agreement if it is not so
satisfied.
c. [Blank]
d. Survey. BUYER is satisfied as the result of a survey of the Property prepared at
BUYER's expense that there are no gaps, gores or overlaps or other matters
disclosed by such survey which would impact upon the intended development of
the Property.
e. Repair and Upgrade. SELLER has been informed by the BUYER that certain
repairs to the property will need to be made prior to the Closing if the Property is
to continue to be rented. SELLER agrees that prior to the Closing SELLER will
either make all such repairs, or in the alternative, will terminate and extinguish all
existing tenancies and rights to use or occupy any paR of the Property.
JBD-189501v1 3
MU195-2
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f. Conformity with Comprehensive Plan. The process described in Minnesota
Statutes Section 462.356 subd. 2 has been completed.
BUYER shall have 60 days from the date of this Agreement to terminate this
Agreement for failure of the contingencies described in sub paragraphs c and d
and f above, and shall have until the closing to terminate on the basis of sub
paragraphs a and b, and e above. In the event of any termination under this
paragraph, the earnest money will be refunded to the BUYER.
To assist the BUYER in the investigations described above, SELLER hereby
grants to BUYER, its agents and designated representatives the right to enter upon
the Property at reasonable times and from time to time after the date of this
Agreement for the purposes described above. SELLER also agrees to provide
BUYER with copies of all reports and studies in SELLER's possession relating to
matters described in sub-paragraphs a and b. SELLER consents and agrees that
BUYER may retain the firm of STS Consultants, Ltd., for the purpose of
conducting or evaluating the studies and reports referenced above.
7. WELL AND SEPTIC SYSTEM DISCLOSURE: The SELLER certifies that SELLER
does not know of any wells or septic systems on the Property
8. OTHER GEl\TERAL AND SPECIAL WARRANTIES:
a. Mechanic's Liens: SELLER warrants that, prior to the closing date, SELLER
has made any and all payments in full for all labor, materials, machinery, fixtures
or tools furnished within the 12U days immediately preceding the closing date in
connection with construction, alteration or repair of any structure on or
improvement (including, but not limited to grading and landscaping, etc.) to the
Property, if any.
b. Notices: SELLER warrants that SELLER has not received any notice from any
governmental authority as to violation of any environmental law, ordinance, or
regulation. If the Property is subject to restrictive covenants, SELLER warrants
that SELLER has not received any notice from any person or authority as to a
breach of the covenants. Any notices received by SELLER shall be provided to
BUYER immediately.
c. DISCLAIMER OF WARRANTIES: BUYER AGREES THAT IF BUYER
PURCHASES THE PROPERTY, EXCEPT AS TO THE CERTIFICATION
DESCRIBED IN SECTION 12 (h), IT WILL ACCEPT THE PROPERTY IN ITS
"AS IS" "WHERE IS" AND "WITH ALL FAULTS'' CONDITION AT
CLOSING WITHOUT ANY REPRESENTATION OR WARRANTY
WHATSOEVER INCLUDING AS TO MERCHANTABILITY OR FITNESS
FOR A PARTICULAR PURPOSE, AND WITHOUT ANY RIGHT OF OFF-
SET OR REDUCTION IN THE PURCHASE PRICE.
9. SURVIVAL OF REPRESENTATIONS AND WARRANTIES: All of the
JBD-] 89501 vl L~
MU 195-2
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o SURVIVAL OF REPRESENTATIONS AND t~`ARI~NTIES: Atl ~~f the
rerresentatic•n: - u~ar: anties- covenants and agreements of the parties hereto untamed in
this agreement shall survtve the closing of the tand`ahallnnot benmeagcd hntol any at.her
deli~~ery of an~~ documents pro~~idcd for herein
a~rcentent.
RISk OF LOSS: If the Property is suhstanttall}~ damaged b `fo this Pu chased Agreement n hall
its use for the int-cncied purposes signiftcantly more costl, .
become null and void. at the $UYER's option. If sucw an e ~ feao,SC~ ahleBLmeEafter ~u h eLeR
a]?ree to sign a Cancellation of Purchase Agreement ithtn
takes place.
lU. TI?~?E OF ESSENCE= Time is of the essence in this Purchase Agreement.
DOCUMENTS 70 ]3E DELI~~'ERED AT CLOSING.
SELLER shall deliver the follp ~i erdocuments to BI,rYER at Closing:
a_ W as; arty Deed to the p
h, Standard form Affidavit of Seller
c. Abstract of Title or the Owners Duplicate Certificate of Title.
d. A '•brtng dawn'. cert~ticate. certifying thatnaelao ~f the datenof Cln_~ d~by SELLER
in th15 Purchase Agreement remain t
e_ Ccrtif~cate that SELLER is not a foreign national
{. Bill of Sale conveying title-to fi et~f an~naE c~ oo en un branccsBLYER and
certifying same to be fre
~- Well disclosure certificate. if rEquired. w•'~~tatement:W~1The SELLER dyoeshnot
warranty Deed shall contain the folio tn~
~,ov, of any w'c]]s on the described real property.'
h, Certification that all repairs and modRf~a~e n` rto tthe lternatineca c~ rtifi~ Lion
with the City requirements }ia e bee
that there arc n° occupants or individuals entitled to occupation ~f any part of the
Property as of or after the date of clo~in;,
i. Anv ether documents rea.~o ~~ that SELLER has cBc r ph dt~`~'1 h tr-e termstc~ftthis
the property is marketable a
purcllasc Agreement.
i. An accounting of security deposits and rents paid and in the po«essicm of
SELLER for any tenancies that will continue t,cyond the cl~s,n~~ Any' such
security deposit and the pro rata portion of any such rEnt wall he delivered to
BL'~Y);R at the Closing.
Bt?YER shall deliver to SELLER at Closing:
a. A standard form note and martgace in the amount of the unpaid purchase price.
CLOSING DATE AND LOC_4TION: Closing shall take p1 Lei ~~ a5 aa~soafter alb of
11.
mutuall~~ acceptable to the parties. Closing shall occur not a
the rreconditions to c}t~sing have hen satisfiedhall be inul and1nioid if the dClosing has
mutual agreement of the parties. this agreement .
not taken place by May 15.2U01
DITIONAL DOCUMENTS: BUYER and SELLER agree to cooperate v+'Ith the
12. AD
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13.
other and their ~epresentati~'es re~ardinR an}= reasonablE clencal erraor<Cinh h s Purcha~e
execution of this Purchase Agreement to correct any
.A~reement and to provide any and all additional dobU ~ s Fu° hace Agreem nt ary ry
either part}~ to effectuate the transaction contempiat }
NOTICES: A~lv notice required or Permitted to be ~i~enQ he SELLER h}nd le erlinc it
given in accordance v~'ith the Agreement if tt tS directed
personally tc~ the SELLER: or if it is directed toyihmB~ d ERabea ed`~ r Peer bef Unated
P
to an officer of the BUYER: or to either party P re aid: or if
States re~isterc°d or certified maic.~inilernco v ifollowedsb~ mailed n lice as abavE
transmitted to either party by fa s P
re uired: or if deposited by either party- cyst paid with a nationally rECO~nized. reputable
9
overnight courier. properl}= addressed a.S follows:
IF TO THE SELLER:
Josephine R. L~n.pre
26;1 Granger Lane
?~lnund. M~' ~~:6d
iF TO THE BL'~YER:
Houstn,_ and R~devElopment Authority
in and fc~r the City ~f Mound
~3~1 ?~?aywcod Raad
;viound. MN 5~36~
ATT~T- Executive D1rCCtor and City Manager
AND COPY 'I'O:
John B. Dean
KENNEDY & GRAVEN. CHARTERED
a7{~ Pillchur}~ Center
2~0 South Si~:th Street
~Zinneap0lis. ?~'I V 540?
Notices shall be deemed effective on the ea'f notice is aver byrdcposit. that their me
depns~t a~ af~~resaid: provided. however. that
for the respojise to any notice by the other Phn~e it address for the ceTvlce of n ti e by
day after an~~ such deposit. Any party may
giving written notice of such ctsange to the ether part}~. or in any manner above specified.
ten (1 Q) days prior to the effective date of such change.
15. EXECUTION i>\ COUNTERPARTS: This Purchase Agreement may he exECUted in
counterparts b}' the parties hereto.
ENTIRE AGREEMENT: Except for that instrument entitleattaRched hhbh tsaand
]6.
Agreement elated January 23. 2001. this h~rcharats e A hallmonst'tutc the entire agreement
any addenda or amendments signed by P wntten or oral asrEEments
between SELLER and BUYER. and supersedes any other
bet~~~een SELLER and BL7YER. This Purchase A`reement can manly be modified in
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ThE undersi`ned. do hereb~~ appro~'e the above Agreement and the sa]E thereby made.
Date : ---
SELLER:
n10UND DRYGOODS COMPANY, INC.
~~~~a~ ~ '7'~ ~~d7'1~/~ _
$V:
Jos~phine R. Longpre
Its President
HOUSING AND REDEVELOPMENT AUTHORITY
IN A ND FOR THE c,ITY OF MOUND
B ~'_
its Chair
B~~:
j+c Exeeuti~~e Director
This instrumeln was drafted by:
KE'v:~'EDY & GR.AVEr. CHARTERED (3BD)
a i0 pi3lsbury Center
200 South ~ixtn ~ u ~~.~
Minneapolis. MinnESOta 55402
612-33 ~-9300
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AB5'~'RAC`T OF 'T'I'T'LE
-Ta--
rision N'amber 170, describes
U , Audito='' s Subdi' s3:d 5,o t
of Lo ,. at s point on the Westerl;' ,1ne Ff thence
That part 1 ,r:-~ng D thereon ,
as follows: BeB~` the Southvest eorn_r
d;s-ant 50.5 feet forth o` the Northwest corner a
the ~+est line of SaidoLHorthezly line of said Loy
North along ~ Prly along th- with the wTeGt line o;
y:,a;^eC`i ~ thence La"t+ t2'iellCe South parallel o y3b'- i~ feet ;
~. ~o f ' .i ,eP~; ~- th e at a right a'g-o a pcir,t
d= Lari~ o `~ c 60 fees, enC ,_e~- ~
c2.? d lrOt 3 Qi5 tai`?-_~o jOllth 5 • ~ f fiat ~ dCLO`O'tS":°,1C° MTeS ~?= ~ ~ .21 a
thence .t s rig- ~ J lire o. ;ai ~~
root 1':G'i.~'1 OT :1P jOiltil
50.2 e to ~~ point of beg?nning~ Nuaber 170.
straight li:~-• ~ t;,"- g Auditor's Subdivision of said
A:,SG : 2het par ,, o. Lo ~ at t':e Northwest cozier
Beginning of a distance
th_ Northerly line of said L slid Lot a
described as folco~'i`, along the West line of
Lot 8, t?-.ence Ea_ ~ ,- arallel witaagle E :e theZCe at
of ;:p.1 feet: the*,=e Sout:~ p ast 10 et' rP ~ N rth
3:stance of 60 feel; theZCotstmoreiortless to a point 50•? ~-ey o
the actual point of
s 'fight sr•~le ~o"yh~-mss idf Lot, said point being theIICe contin wing South.
land to be described; line of 5e.id °
of the mouth line O-
begir:Wing of the t: act of t the South
o e Southvest corner
a-_ong the last described course 50.Z fee to th- of
the South line of saidpLof said Lot a distance
thence west alcng West lia_ the actual point
~;;oreof; thenc° north along the
~„ asterly in a straight line tOgd3oining the
F
j0.65 feet: ~h---c~' `' r -raCated portion of roa ,
r begin^in8, incl1-di_.g antra,
of tracts • ~, ~ Lake N,nnet
::a,;e described to Mound' ,
Lot li~ uciT.yu€ht's Addition including vacated p°-lion of road
pL50: ,~, ?o ~ feet hereof;
r^pT the Sou~__ • ~ r t
EX~y` P ve described grope Y
adjoining ~h_ abo
;f h b
~~ ~
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DRAFT
1/24/O1
AGREEMENT
THIS AGREEMENT is made and entered into this day of , 2001, by
and between the Housing and Redevelopment Authority in and for the City of Mound, Minnesota, a
Minnesota public body corporate and politic ("HRA"), and Gramercy Corporation, a Minnesota
corporation ("Gramercy").
RECITALS:
First: Gramercy is interested in pursuing the redevelopment of that certain area located in Mound,
Minnesota, which area is generally shown on the attached Exhibit A (hereinafter the
"Redevelopment Area");
Second: Gramercy is proposing redevelopment within the Redevelopment Area which may include
office ,residential and commerciaUretail uses (hereinafter the "Redevelopment");
Third: The HRA wishes to cooperate with Gramercy's efforts with Redevelopment and are willing
to proceed as described in this Agreement;
Fourth: The parties acknowledge that Gramercy will expend substantial time and effort, and incur
substantial expense in pursuing the Redevelopment;
Fifth: Gramercy is willing to undertake the above describe activities with the reasonable assurance
from the HRA that it will support and cooperate with Gramercy in his Redevelopment efforts.
Sixth: The HRA and Gramercy have executed this Agreement to document their understanding
with respect to the proposed Redevelopment.
AGREEMENT
NOW, THEREFORE, in consideration of the premises and mutual obligations of the
parties contained herein, each of them does hereby represent, covenant and agree with the other as
follows:
Statement of Intent.
It is the intention of the parties that Gramercy will proceed with the development activities
necessary to permit Redevelopment, in a manner, and on terms and conditions, which are
mutually acceptable to Gramercy and the HRA. The parties acknowledge that in order for
Redevelopment to be constructed, Gramercy may at some point need financial and/or site
assembly assistance from the HRA. This Agreement does not, however, constitute either
approval of such financial or site assembly assistance, nor does it obligate the HRA to
~^'~"' provide such assistance.
1BD-190433v2
MU 195-2
2. Undertaking_By Gramercy.
Gramercy intends to undertake and pursue certain activities with respect to the
Redevelopment. Gramercy's activities will include the following: site assembly,
development of plans for the Redevelopment that are consistent with the Mound Visions
guidelines, application for necessary government approvals, and such other activities as
would be customary and necessary to permit the Redevelopment.
3. HRA's Undertaking and Agreement.
The HRA agrees to cooperate with Gramercy in Gramercy's undertakings, and specifically
agrees that during the term of this Agreement the HRA will not (i) provide or enter into an
agreement for provision of financial assistance to any third party in connection with any
proposed development within the Redevelopment Area, or (ii) except as may be necessary
in connection with the provision of public improvements, condemn or agree to proceed with
the condemnation of any property within the Redevelopment Area to assist or facilitate
development within such area by any third party.
4. Term
The term of this Agreement shall be for a period of eleven months, provided that, either
party may terminate this Agreement upon thirty (30) days written notice to the other, in the
event that: (a) the HRA determines, in good faith, that Gramercy is not diligently pursuing
the Redevelopment; or (b) Gramercy determines, in good faith, that the Redevelopment is
not feasible. The parties each waive any claim or cause of action that they may have against
the other party based upon the termination of this Agreement by such other party. The
parties may, by mutual written agreement extend this Agreement for such further periods as
they shall determine to be appropriate from time to time.
Any such notice shall be deemed delivered if either actually delivered, or if faxed and
mailed to the parties at the following addresses:
Gramercy Corporation
7900 International Drive
Suite 1035
Bloomington, MN 55425
Attention: Michael W. Conlan, President
Mound Housing and Redevelopment Authority
5341 Maywood Road
Mound, MN 55364
Attn: Executive Director
5. Miscellaneous.
~` A. This agreement constitutes the entire agreement between the parties relative to the
proposed Redevelopment. Unless specifically described herein, no obligation shall
be inferred or construed.
JBD-190433v2
MU 195-2
~-, ~ r
B. As expansion of the foregoing, Gramercy understands that further and separate
action, for which no obligation is created hereunder, will be required before the
HRA is obligated to take various actions with respect to the Redevelopment. Those
actions may include, without limitation:
a) establishment or modification of Project Area and Tax Increment District;
b) zoning and subdivision approvals;
c) acquisition of land within the Redevelopment Area by either voluntary
purchase or condemnation (or both); and
d) construction of public improvements to serve the Redevelopment.
C. Gramercy further understands that many of the actions which the HRA may be
called upon to take require the reasonable discretion and in some instances the
legislative judgment of the HRA, such actions may be made only following
established procedures; and HRA may not, by agreement, agree in advance to any
specific decision in such matters.
D. Contemporaneously with the execution and delivery of this Agreement Gramercy
has delivered a deposit to the HRA in the amount of $ 20,000 (the "Deposit"). The deposit shall be
~' used to reimburse the HRA for its costs and expenses incurred in carrying out its obligations
.M, hereunder and in the negotiation of a development contract with Gramercy. Any unexpended
portion of the Deposit shall be returned to Garmercy upon the expiration of this Agreement.
IN WITNESS WHEREOF, the parties have executed this Agreement effective the date
and year first above written.
,~ ,
)BD-190433v2
MU 195-2
;,
MOUND HOUSING AND
REDEVELOPMENT AUTHORITY
By:
Its
By:
Its
r
GRAMERCY CORPORATION
By
Its President
JBD-190433v2
MU195-2
,. ~ r
. FEB. 9. 2~~u1 2:27Fti1 EHLER'~~ ?l A~~SOCIATES ~C. E614 F'. 2
Assignable Option to Purchase Land
1. In consideration of good and valuable consideration, the sufficiency of which is hereby
acknowledged, the undersigned; hereinafter called Optionor, herrvice 13andu its Lassie IT the
STATES POSTAL SERVICE, hereinafter called Postal Se ril 1, 2001, for the sum of
irrevocable option or right to purchase by not later than ~
$27Z~~j8_70 ("Purchase Price"), which consist d `'~ tionoreas des r bed n para0graph 3
for the Property {5260,100) plus the costs me P
($12,68.70),
the parcel of land legally described as follows ("Property"):
Lots 6-11, Koehler s Addition to Mound, Lake Minnetonka, except: (1) the South 10
~ the South 10 feet of the West''/z of Lot 7; (3} the South 5 feet of
feet of said Lot 6; (~)
the East Y of Lot 7; and (4) that part of Lots 10 and 11 lying easterly o± the following
described line:
Beginning at a point on the north line of said Lot 11, distant 10.00 feet
westerly of the northeast corner of said Lot 11; thence southerly, parallel
with the east line of said Lot 11, a distance of 11.33 feet; thence southerly
185.75 feet along a tangential curve, concaved westerly, have a radius of
400.00 feet and a central angle of 26 degrees 36 minutes 26 seco.~ds and
said line there terminating.
Subject to an easement for sidewalk purposes which is hereby reser.e~ by Optionor
over the South 10 feet of said Lots 7-11.
?. Notice of Election to Purchase by the Postal Service or its assignee shall be given the
Optionor by delivering, mailing or telegraphing a notice of said election to purchase, prior to
the date specified in Paragraph 1, above.
3. The Optionor shall, upon the request of the Postal Service le icost sand e acens r oftthe
thirty (30}days, to the Postal Service or its assignee, at the so P
Optionor, a title insurance commitment, wtirten by a title company satisfactory to the Postal
Service, obligating the company to issue a policy of title insurance to the Postal Service or its
assignee of the type and in the form customarily used in the community where the Property is
located in the amount not less than the Purchase Price, guar mtadz subtectt tot any defects,
required in this option. If the title insurance commitment J
encumbrances, liens, charges or other objections, then; the Optionor shall have thirty (30) days
from the date of the commitment to remove same, or to make arrnan of ~lo'sinR tlf theoOptior or
ice. Postal Service or its assignee to remotle wine on or before the tt
fails to remove or make arrangements to remove such defects or other objections as aforesaid;
the Postal Service or its assignee shall have thirty (30) days either to e1'i~ct their removal and
RJL.-185656v4
btU 19 ~-2
e,
FEB. 9. 201 2 27Fp~~ EhL:R'~ ~ ,~~SC~:ATF'.
n
chazge the cost thereof against the Purchase Price, or to terminate this option to purchase land.
If the use of the Property or the construction of a building for postal purposes is prohibited by
rEStrictive covenants or by any law; regulation or mandate of the state or local government such
prohibition shall be considered a defect in title subject to the provisions of this paragraph and
Ih15 d~IZeIII~At can be considered null and void by the Postal Service. Shot'~ld this option not be
exercised by the Postal Service or Its assignee, the Postal Service will reimburse the Optionor
for the cost of the title insurance commitment and other costs (if any} incurred in curing title
defects at the request of the Postal Service, upon presentation of substantiating evidence.
4. Within thirty (30) days from Optionor's receipt of the notification of election to
purchase by the Postal Ser~ZCe or its assignee, the closing and settlement of the Property shall
take place at a location mutually agreeable to both parties or in the :.it,:. town, or county ~n
which the Property is located. Any delay caused by removal of defe~t~ =end other objections
pursuant to paragraph ~ of this option shall extend the closing date the number of days equal to
such delay. Possession of the Property shall be delivered to the purchaser ,~n the day the gale is
consummated unless a different possession date is herein specified.
5. The Optionor shall deliver to the Postal Service or its assignee, at t'ne time of closing or
settlement, a title insurance policy in the amount of the option price stated above and a general
warranty deed with full covenants conveying the Property with the hereditaments and
appurtenances thereunto pertaining, in fee simple title, free and cl~~ r Trom all liens and
encumbrances, except those specifically excepted or reserved herein, to~echer wZth all right.
title, and interest of the Optionor in and to any streams; alleys, roads, streets, ways, strips,
gores, or railroad right-of--way abutting or adjoining the Property. The Postal Service or its
assignee shall make payment of the Purchase Price as stated in paragraph 1 or 3 above.
6. The Optionor shall not rent. lease, or otherv4~se increase the tenancy of the Property
after receipt of notice by the Postal Service of its formal advertisement to solicit proposal for
construction and lease or election to purchase as required in paragraph 2 above.
7. Real estate taxes which are assessed. levied, imposed, or which are a lien on the
Property; on the date the sale is consummated, as well as rents, general and special water and
sewer rent or rates, electric and gas charges. and the follou~ng charC~. if any; are to be pro-
rated and adjusted to the day the sale is consummated; or to the day the Postal Sen~ice or its
assignee takes possession of the Property. whichever is the earlier: ISO
3. The agents, employees or representatives of the Postal Service or lease offerors shall
have the right, during the period of this option. subject to the use made of the Property by the
undersigned, to enter upon the Property for the sole purpose of inspecting the same and making
test borings, plans and topographical surveys in connection with contemplated use of the
Property. The Postal Service or the lease offeror concerned, as the case may be, at its expense
shall promptly restore the Property of the undersigned to its original condition in accordance
with good engineering practices- Such entry, inspection, test boring. and surveys shall not
constitute possession of the Property by the Postal Service or lease otTerors- The Optionor has
undertaken Phase I, Phase II and geo-technical investigations of the Property and has surveyed
the Property, and incurred an aggregate amount of 512,653.70 for such invest~gatrons,
Optionor has provided copies of the reports obtained pursuant to such investigations as follows:
[JL- t 85555 a ~
MU 195-3
U
FEB. 9. 2U0 i 2:23P~~
Title of Report
EHLERS & ASSOCIATES
Phase I Environmental
Site Assessment
Phase II Environmental
Site Assessment
Subsurface Exploration
and Geotechnical
Engineering Analysis
Registered Sun~ey
Total of Abo~~e Costs:
Date of Report
May 12, 2000
3une 29, 2000
June 22, 2000
August, 2000
r
Pre arer of Report
STS Consultants, Ltd.,
Consulting Engineers
STS Consultants, Ltd.,
Consulting Engineers
STS Consultants, Ltd.,
Consulting Engineers
McCombs Frank Roos
As~oc;ates. Ins.
NG. 314 ~. =,
Cost
$ 2,500.00
$ 1,879.00
$ 2,600.00
$ 5,679.70
$120
9. The Optionor agrees that loss or damage to the Property by fire or acts of God shall be at
the risk of the Optionor until payment of the Purchase Price for the Property and a recordable
deed to the Postal Service or its assignee ha~•e been delivered to the Postal Service through its
duly authorized representative or its assignee; and; in the event that such loss or damage
occurs, the Postal Service or its assignee ma}', without liability, refuse to accept conveyance of
the title or it ma}- elect to accept conveyance of title to such Property; in ~~hich case there shall
be an equitable adjustment of the Purchase Price.
10. It is agreed that the spouse, if any, of the Optionor(s), by signing below, agrees to join in
any deed to the Postal Service or its assignee and to execute any instrument deemed necessary
to convey to the Postal Service or its assignee any separate or community estate or interest in
the Prop~rt}- and to relinquish and release any dower, curtest', homestead, or other rights or
interests of such spouse therein,
11. No member of or delegate to Congress may be admitted to any part or share of this
option, or to any benefit arising from it. This prohibition does not apply to the extent this
option is ~1~ith a corporation for the corporation's general benefit.
12, a. The Optionor warrants that no person or selling agency has been employed or retained
to solicit or obtain this contract upon an agreement or understandi:~~~ for a commission,
percentage, brokerage, or contingent fee. except bona tide employees c; bona fide established
commercial or selling agencies maintained by the Optionor for the purpose or obtaining
business. The only such special agent retained by Optionor to assist Optionor in negotiating
for acquisition of the Property by the Postal Service (other than its usual consultants) iS
Sherman Malkerson of The Chase Compan}-. Optionor shall pay all fees owed by it to
Sherman Malkerson and The Chase Company in connection with the Property.
b. In the event of breach or violation of this warranty by Optionor, the Postal Service has
RJL-18~656~~3
MU I95-2
3
1 1
FEB. 9. 20U1 2:29r'?~~ EHLERS ~ ASSOCIATES
~" the right to annul this contract without liability, or at its sole discretion, to deduct from the
V ~ contract price or consideration, or otherwise recover from Optionor the full amount of the
commission, percenta~c, brokerage fee, or contingent fee.
c. Licensed real estate agents or brokers having listings on Property for sale, in
accordance with Qeneral business practice; and who have not obtained such licenses for the
sole purpose of effecting this option, may be considered as bona fide employees or agencies
within the exception contained in this clause.
13. Optionor represents that, upon information and belief, as of the date of this option and
transfer of title, except as specifically identified herein, (1) the Propert;' (including the land.
surface water, groundwater and improvements to the land} is free of all contamination from
petroleum products or any hazardous substance or hazardous waste, as defined by applicable
state or federal law, and (2} there are no underground storage tanks or associated piping on the
Property. 'T'his warranty survives transfer of title and shall be binding upon Optionor, its
successors and assigns.
14. All terms and conditions with respect to this otTer are expressly contained herein and the
Optionor agrees that no representative or agent of the Postal Se:-.~icc has made an~~
representation or promise with respect to this offer not expressly contain~':-ierein,
15. This option shall be freely and successively assignable by the Postal Service and may be
exercised by it; its successor. designee or assignee.
16. Legal title is held by Optionor.
17. Notwithstanding any other provision of this Agreement, Optionor reserves the right to
remove the block in the retaining wall on the Property prior to completion of the Postal Service
construction on the Property.
13. Bankruptcy. In the e~'ent the Optionor enters into proceedings relating to bankruptcy,
whether voluntary or im~oluntary, the Optionor will furnish, by certified mail; written
notification of the bankruptcy to the contracting officer responsible for administering this
contract. The notification must be furnished within five days of the initiation of the bankruptcy
proceedings. The notification must include the date on which the barllcruptcy petition was filed;
the court in which the petition was f led, and a list of Postal Service contracts and contracting
officers for all Postal Service contracts for which final payment has not het been made. This
obligation remains in effect until final payment under this contract.
19. Tax_Increment Assistance. The ~r e ' is located within s Rt=d~~~elopment T.ax
Increment District of the O to ionor• The O tionor agrees that sub'ect to the limitations
contained in Minnesota Statutes Section 469,17 subd. 4 g. and iVlinnesota Statutes Section
1.16J.993 throu b 99~, it «~ill .rp ovide reimbursement from the tax increment enerated by
the Pro er .for the actual cost of certain. exterior desi n and._material.treatment
enhancements to the post office facili to be constructed on the Pro e • _and more fug
described in the attached Exhibit B.... uch reimbursement shall not exceed 5200,00_00 plus
interest at the rate of 9.00%. The obligation will be evidenced by and payable accordin.a to
R1L-155656v4 ~
MU19~-?
4.. ~ r
FEB. 9. 2001 2:29FM EHLERS & ASSOCIATES NO, 8614 P. 6
the terms of a note_in_ sub~tantjally the form of the attached Exhibit A, (the "Note"1. The
Note will be delivered at Closing.
Date: , 2001 D~?A88
The Housing and Redevelopment Authority
for the City of Mound (Optionor)
By: Pat Meisel
(Print Chairman's Name)
By: Kandis Hanson
(Print Executi~•e Director's Name)
The Housing and 'Redevelopment Authority
for the City of ;Mound
5341 Maywood Road
Mound, NfN >j364-1627
STATE OF MINNESOTA }
SS.
COUNTY OF HENNEPIN )
Signature of Chairman
Signature of Executi~~e Director
952-472-0600
Telephone No.
The foregoing instrument was aclcno~vledged before me this -day of ~~
?~9A __ _2001. by and
as Chairman and Executive Director of The Housing and
Redevelopment Authority in and for the City of Mound, a public body corporate and politic
under Minnesota law.
RJL-185656v4
MU 195-2
Notary Public
5
FEB. 9. 2061
1 1
2;30PM EHLERS & ASSOCIATES N0,3u14 F.7
ASSIGNMENT
FOR VALUE received and in order that
herein called assignee may construct on the .,above land a building and related site
imgro~~ements as required by the Postal Service, THE U.S. POSTAL SERVICE, acting
through the undersigned, does hereby assign, set over and transfer to said assignee all right,
title and interest of THE U.S. POSTAL SERVICE in and under this Option to Purchase Land.
Assignee must notify Optionor{s) of his election to purchase the land as required by paragraph
2 of the said option with a copy of said notice being furnished to the undersigned Contracting
Officer. Assignee shall proceed to purchase the Property as required by paragraph 4 of the
said option.
Date:
THE UNITED STATES POSTAL SERVICE
Print Name and Title of Contracting Officer
ILL-tJ5656v4
b1U 195-?
6
Signature of Contracting Officer
FEB. 9. 2001 2:30FM EHLERS ~, ASSOCIATES NC. 361?-r, 3
EXHIBIT A
EXHIBIT t5 EXAhtP,4.E..O.F.,FORiv1 ONLY. PR1NC,1,„P,a1,_,~,r10U1~T.~:~D P.4Y'MENT
.. ... ...
.. ..
SCHEDULE WJLL BE,BASF.D OIY.QU?-LIFY"I~~G_EYPENSES AI\D llATE OF
CO_MI'LE.TION
T71yLT.ED S_T,t1.T.ES._OF AMERICA
STATE. OF_ MIIVINES.O.TA
COUNTY OF:,HENNEPIN
THE,HOUSiNG .aND RF,p~VELOP`IEIr'T AUTHORLTY
Ilv AND.FOR,THE CITY OF_MOUrD
LIMITED REVENUE TAX INtrREMENT NOTE
The_ Housing apd. Redeyeloplrtent,g~uthority in and for_the City, of„iVlound (ttte_"authority_"), hereby
arJ:nowledges_itseti to be indebted and,,, for value receiyed,..promises to pay to the order of.The, United Slates
Poscal,_Seryi~e.(the 'U.wner_':.).,::to.the_eatcnt 2nd in_the__manner_hereinafter p,~o~_ided, the .ori.gina[_principal
amount of this Note being S (the„','Principal Amount"),_together_w~th interest thereon_,accrued
from,.,the_date,of.this,.,~lote,_at. the.rate.of ittte_rest of _%per annum (the_'_Stated_Rate"~, on..the.dAtes (thy
"Scheduled Payment_D3tcs"), set, forth on the attached Schedule ,a unpaid intere;: ace.ruintilrom the date of
this. Note, shall be. added. to_ principal on__a,,.,semi_,antlual .basis._on each August t and, Februar}_.l...until
.._..... .... .. .. .........._.e...
Any payments on_this Note_shall.be..applied_frst to dccrued.interest and then to the Princi.pal,Amount
in_reSpect. of. which such Payment, is made.
Each,,,pay_~ent, on thi,s.Note, iq,Payable in an)' coin or currency of the_l.?nited States, of America which
on,the,date of such,_payme,nt.is_ legal_tender_for.publis..and pri~ste debts and shall b_e_made_by check or draft
made payahle to the Owner and,mailed.to. the,Owner. at it postal address within the United States which shall
be.designated..lro.m.time,to. timc..by~.the Owner.
.T.he..Note.is. a special_and.limited obligation and not a.general_obligation.of the Authority;, which. has
been issued by. the Authority to aid in tinancing„a,."project," as, defined.in_Minnesota_Stattttes,_.g. ~69.17~, of
the.Authority._.within, and.for the, benett_o_f. the. ,Tax.,,Increment__Fina,nc4n~_,.n.ictriet
~'l)istrict").
THE_NOTE_.1S_NOT .~_1)EBT._OF_THE_~UTHORITY, THE CITY OF titOliND,, OR,rHE_ST.aTE
OI!:MI.hNESOTA, ('THE._`.ST,@tTE"),.,SiV~ ,y.E,(T~lEEt_:T;HE,,,~UTNORITX,,,THE.,CITY.OF.h10UND,. THE
STATE.NQOR_r1~1Y.P,OLITI.CAL,STJ_B.I)1iv_IS,LOI!1,THEREOF SHr+-LL_BE__LIABLE Oir_THE.NOTE,_VOR
SHALL _.THE, .NOTE..._BE..PAYABLE_. OUT_.QF._ANX. FUNDS__OR . ~ROI'ERTIES, _OT)3-)rR THAN
AYA:LT-ATiLE_TAX 1NCRF•_MF,yT,A$~FF_TKED,B,ELOW_.
The_Scl~eduled:Payment of~this.Note.dueon_any_Scheduled 1'a~_ment_Dste is_pay2ble._solely_.from and
oDly_to the extent that the,~uthority, shall heve..,received as..9.fs.uch.Schzd.uled_Pa}_rn~nt_.Date !'Av,~ilable Tax
-- . ....
~, ~~
Increment.., ,For, the,purpose_of this..Note,, Available, Taz_Incr,ement','_means, (9Q '/) ~f,the__ta:„incremen.t
received from .the.. real estate described in.Schedule.B. (thc._"`Property"), fir dears be;inning N•ith_ anal
ending ,..after first deducting th.erefrum.any.. amoynt. needed, to...mal:e..s previously. due but un~sid
,.,,.,, Scheduled Pavment.to,Owner.
_ I+~.~u~PQces_9f t_hi~ iV_ol~, a.."~axm~nipate.'~Etall_mean.each_ofahe:dates_set._forth_oq Sehedule.a
attac~ed_hereto._ phis Mote shall_teritt'tnate ,up9n the_ear}ler, of ,~ .the date when. the Oriner_has_been fully
t'eitgburaed_accgrding to_the terrng.hereof,.,or. i),.the.last.date on which the Authority is entitled to receive ,tax
JBD-1862~9~•5
MU 195.9 D• 1
FEB. 9.2001 2.30PM EHLERS & ASSOCIATES
v0. 8614 F'.9
increment with.respect:to_the:Redevelopment Propcrty,,exclusiv_e of_[_a_[e._.pay_ments of tax_increment_a~ctued
duringthe.te>r~rJ of the.District.
The ,. Autholitx's~obligation to_make any,,.payments_under. this, vote shall be._ suspepded and:__thc
-------
~uthority shall, havelto.obligation 8nd_Incur no_liab~lity.to_make aBy_pay_meets_hereunder_immediately.._upon
the._occur[erce.o.f an Event of Default (relating, to the.C..gmponent for._N_hich the.lVote was.issued)._ttnder the
Contract for Private__Dr<velopment,.,chted , ..(the.. " Det'elopment Contract") .bet~veen_.the
.... _
Authority and the Owner, subject to the._no[ice.sind care provisions of.Section,10.2 thcreoC
This. Note shall not be pa};uble from,or_constitute a._charge upon. any. funds. of .the. quthority_ or,.the
City .o~'.iH.ound and, the Authority, shall not be_fu,bje~t__to_any_li~.bility_hereon, or be deemed_to have_ob.ligated
itself to pay..hereon from_any__funds excgRt the_Available. Tox.Incremcats, and theq_onl~to the_exte__nt a__n_d___i_n_
the manner herein_4pecified;
The._Owner shall never_haye or._be..deemed_to:hayeahe_right to..com.pel_an, _exer4i5S__~ at>,y,taxin~
potiyer of the Authority or the City,, of Mound_or.of any.otther_public_body, and neith?r.the__Autho[tty or_thc
City. of Mound nor any director, commissioner, couRCil_member board member, officer, em.pJoree_oJ' aeent,of
..
the._,.~uthoriiy_.or_ the._Ctty._of Mound, nor, any_rerson__e~ecuttng _or registering this Yote shall be_.liable
personally hereon.by..reason of_the Issuance ore lstration hereof or otherwise.
T.1tis;yotc shall_not be transferable or assignable,.in whole or ip_part<,_b}~ the.Otypcr. without the~rior
written consent. of the A ~_..__._._.___.______.....__. ..,....., .. ........___.__.
., _.__._ _._._ _..__.._.._^__.~ _._...uthority;.provided_that.the,Owner_tnay_.pledge th.c.pay_ments hereunder_to a_lender or
assi~~._the,_payme~tts.herettnder.to..a, subscqucnt.purchaser of.the_.Development, but only_with. prior written
notice thereof to the ,authority.
The_Owner..ma}- also, without_prior notice to or consent_ot the AutJtoraty_tcansfec.o_r___assi~.,the Note
or the right,to.receive„pa}~megts_under..the_Note.to a wholly_owned;ubsidiar}_of the Owner.
This. Notelnay.be.prepaid_in.full ai..any_time.at_the op[on.of_the_~uthorit}itut only with thz consent
clf_the_Owner;_.and_may,_alcq._be__prepaid_.at_the_request of, the Uw~er,_but_~n_either instance only_if the
,~4uthority....flrst. determines that_suffcient tax_inc,retRen.t_is._or_tyill. be..gelterated. to..permit such prepaytnent,
and.the~arties agree_upon_the_actual prepayment amount.
This Note is issued. pursuant pr~er_action of the Authority by_Resolutio~ and the O~ti'ner is entitled
tO.the_benetits thereof, which Rgsolut.ion is,incorporated.hereiq by. reference.
IT IS HEREBY CERTIFIED,~ND RECITED._that_any__acts,_conditions, and things required by_. the
Consti,~ut;o.q and laM, ~f the State of Minnesota,to_be,done,,,to haye,happened..,.and„to_be_performed. precedent
to_and in.the_tcsuance of this.l~ote.,hav_e been do..ne,_have ha.ppened,. and.have been__~erf~rmed in_regular__and.
due.form, time, and manner, as_reguired by law; and_that this Note, together with alt other indebte_d_ne_ss_o_f the
Autholity,,.or the_City_ of Mound,outstanding_on_the,date.hereof and,on,the_ date of its.ac,tual issuance and
deliver}.,:does.ltot_cause,the,indebtedness.of the Authority or the,City.,of.Mound_.to.e~ceed,any.,constitutional
oz statuto[r_~imitatJon therepn.
IN WITNESS WHEREOF,.She.Bo.ard.o~.Commis.LOAe,[S._of.the..A,uthority has.caps,ed this„Note_to be
executed by the.manual.signatures ~f the, Chairperson.and_the Executi~•e Director of th? Authorit} and_has
cawed this..Yote to, he dated. 200
~...__-.
?HE HOUSING AND REDEvELOXNiELY~T
AUTHORITY FOR, THE CITY OF 1~i0UND
sy.;
Chairperson
1BD-I63259v5
MU t 95.9 B-2
~ r
FEB. 9.2001 2.31Pi~~ EHLERS & ASSOCIATES
By'-
~x~c.gtiye_Director
NO. ~ni4 F'. iU
JBD-1RR2:9v~
M!J 195-9 B-3
~ y
FEB. 9.2401 2.31P'~i EHLEES ~ A~::~OCiAIES
SCHEDULE A
iVO, 3614 F'. 11
SCHEDULED ~CE[EDULED ~
PAYhfEN7.D~T~S PAYMENT' DAJE.$
1BD-1RR2i9~5
M11195-9 II.q
i
FEB. 9. 2G01 2:31 PM FREERS & ASSOCIATES N0. 3G14 ~', i~
. r'""`
~-
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i
EXHIBIT. B
LIST OF OU~.L~FYING EXPENDITURES
~TO__BE.SUPPLIED PRrg..,R TO EXECUTIpN)
This redlined draft, generated by CompareRite (T1Vn -The Instant Redliner, shotivs the
differences between -
original document : J:1DMSIRJL~Z9444~.DOC
and revised document: J:1DMS1RJL13Z9405:.DOC
CompareRite found 4 change(s) in the text
Deletions appear as Overstrike text
Additions appear as Bold+Dbl Underline text
RJL-18565b~•a A-1
MU l95.2
HRA Meeting of 2/13/01
Present: Brown, Hanus, Meisel, Anderson, Meyer.
Brown/Hanus to approve agenda. All ayes.
Minutes of 12/12 and 1/23 - Hanus/Meyer. All ayes.
Longpre - I{andis - in addition to purchase, letter of purchase agreement presented
Brown -Mound at great turning point, and this is start to take to live city, from dead city.
Brown/Hanus. Attny" Also authorized to sign letter attached.
Meisel steps down due to possible conflict of infest Hanus takes over - Gramerlcy) Hanus asks if any
questions. Hanus clarified -this is preliminary development agreement with Gramerlcy -now will go
forward and spend $, come up with plan, and come back to City for plan . Timing on original was 45
days, and this one runs through 11 months. Have that time to come up with plans for downtonw area.
This is exclusive agreement to deal with them on this issue. Attn: Gramerlcy prepared to make deposit and
move forward Brown/Meyer to approve. All ayes.
Meisel returned to seat....
Item six -approve of option for post office. Attn: (John Dean) have seen and approved indifferent form
several months ago. Changes are noted and provisions to making T1F assistance available to assist -
reimbursement for certain exterior treatments asked for, up to $200,000 of their actual costs. This is done
in connection with the note. Had to revise note (atny) - the developer has to hold the T1F note.
Hanus asked re 'TIP note: Who is trigering ? Dean: Post office. Hanus -how know need? Kandis:
Because of the farad requirements that the city made, the wouldn't otherwise design the PO like this.
Taxable? Atty: Yes.
Motion: Hanus/Meyer to approve agreement (note included as exhibit A)
Brown/Hanus to adjourn at 6:43 p.m