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1999-05-11c/ • MOUND HOUSING AND REDEVELOPMENT AUTHORITY 2020 COMMERCE BLVD. MOUND, MN 55364 MINUTES OF MAY 11, 1999 The meeting was called to order by chairperson, Pat Meisel at 7:OOPM in the council chambers of Mound City Hall. In attendance were the following: Andrea Ahrens, Bob Brown, Leah Weycker, Mark Hanus and Pinky Charon. Pauline Payne was absent. The first item of business was the approval of the consent agenda which included the minutes of the April 13, 1999 meeting and a list of bills totaling the amount of $ 9, 190.46. A motion to approve was made by Andrea and seconded by Bob. The motion was called and passed unanimously. The next item of business was the Preliminary Redevelopment Agreement between the Mound H.R.A. and the redeveloper, The Beard Group or Mound Mainstreet Inc. Their representatives, William H. Beard and Paul Gamst were present. Before the preliminary agreement was discussed the Mayor, Pat Meisel, read the attached statement and turned the meeting over to the Vice-Chair, Mark Hanus. After discussion which included the exhibits referred in the agreement that were not attached which attorney, John Dean explained he had forgotten to bring. He explained what they referred to and said they would be attached to the original agreement. It was also decided that the $ 2,500.00 given to the Mound H.R.A. will be deposited in a account at the city and controlled by the city finance director. A motion to accept the attached agreement was made by Bob and seconded by Andrea. The motion was called and passed unanimously (Pat Meisel did not vote) . A motion to adjourn was made by Bob seconded by Andrea. The meeting was adjourned at 7:40 P.M. Respectfully submitted Karol Charon, Executive Director .~ ~/~Iys Du Ce or Date ' Date Pat Meisel, Chairperson With two attachments: Bement 1 Preliminary Redevelopment AgC' 2. Pat Meisel's Disclosure Statement n U • ~ ... .. J MAR-19-2001 23 56 MOUND HRA MOUND HOUSING AND REDEVELOPMENT AUTHORITY lndlan Knoll Manor # heck Pl4z V_ dorlMer ant 1 2 3564 Mlnne asco ~ 3565 City of Mound 3 -4 3566 M E I _ 3567 A T_,8. T ~ $ 6 7 3568 Sams . ~ ~ 3569 Ko sa, Sylvester 3570 Glenwood In tee wood 8 - g _ 3571 Daniels Interiors 3572 Waconia Bulldin 10 3573 B F I _ 11 3574 N S P ._ 12 3575 Bud et Li htin , 13 3576 Nitro Green ,_. 14 -~ 15 3577 Housin Auth Ins 3578 Paul Kronholm 16 3b79 Dave Briggs 17 3580 G T E -18 ~ 3581 Verified Creditials~ 19 3582 Coast to Coast 20 _ 3583 Gardensca a ,_ y~ 21 _ 3584 R an Trullin ear 22 3585 Karol Charon 23 3586 Paut Kronholm 24 3587 Betty Kronholm _ Y5 3588 Marquette -IRS 27 28 29 30 31 32 33 34 35 • TOTAL: TOTAL ACC. PAYABLE Begining Bank Bal. Deposits MTD ENDING BANK BALANCE Sig e: ~~~~ Amount 95247?5070 P.04i05 Comments $1,057.86 1,ass.61 i38.ao 28.2a server and ance suppl 8~.oa 13.42 540.00 a t 100 128.87 door a t 100 263.53 980.12 125.49 li ht bulbs 72.42 lawn service 1,361.00 _ .~ _ 6.28 as _ 40.00 roto-till garden 20.00 217.94 maintenance supplie 31,95 weed,mulch and till 85.48 fiscal a ent 894.49 _ 977.68 174.97 $9,190.46 $9,194.46 $32,014.53 $9,598.00 $32,422.07 AccPay 05!14199 MAR-19-2001 23 56 MOUND HRA r ~ ~J eve iJUC~wi Lu+~~ ~ ~/~~1~~ With two attachments: 1, Preliminary Redevelopment Agreement 2. Pat Meisel's Disclosure Statement r • a P 9524725070 P.03i05 Pat Meisel, Chairperson Laze H 4MNiMvub~ib~i~bH~,,,i~,,, ~,a 05/17/99 13:28 FAX i CITY OF MOUND '~~~ DLSCLOSURE STATEMENT • TO: Commissioners and Executive D'uector FROM: Pat Meisel, Chair DATE: May 11, 1999 At its meeting tonight, the Authority has scheduled conslderata e~a~t p lie~~ to the cement with Mound Mainstreet, Inc•• The ag lid in Development Agr an area descr redevelopment of portions of the Mound downtown area including the agreeznent as the Langdon District. X9.009 I hereby make the In accordance with the provisions of following disclosures: :. It is requested that this disclosure be shown is the minutes of the May 11, 1999 meeting. Dint owner of a tract of land lying wittlir- the Langdon District area. 1. Iamaj My husband is the other joint owners Develop may ~ f~ ~~y~nvlolve have an economic impact upon the p party the property. interest in the property, we may become affiliated with 2. Due to our ownership of that affiliation are not known Mound Mainstrcet, Inc. The nature and terms at this time. Pat Meisel JriD-162735 MU200.79 .w , Y i , PRELIMINARY REDEVELOPMENT AGREEMENT ~ • THIS AGREEMENT, made and entered into as of the 14~' day of May , 1999, by and between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MOUND, MINNESOTA, a Minnesota public body corporate and politic, ("Authority"'), and MOUND MAINSTREET, INC. a Minnesota corporation ("Redeveloper") BACKGROUND The purpose of this Agreement is to set forth the understanding between the parties with respect to the redevelopment of portions of the area contained in the Mound Visions Downtown Concept Plan, dated July 22, 1998 (copies of which are attached hereto as Exhibit A). The portions of the area which are included in this Agreement are described in section 4 below. BASIC TERMS AND CONDITIONS The following is a list of the terms and conditions under which the Redeveloper will proceed on an exclusive basis for the term of this agreement to structure and develop with the Authority a definitive Redevelopment Agreement for the Project and is intended to define the responsibilities and roles of the respective participants regazding the proposed redevelopment of the Project. • 1. Redevelopment Property. 'The Redevelopment Properties are the properties set forth in Exhibit B and which are commonly referred to as the Langdon District, and Auditor's Road District respectively, as more fully described in the legal descriptions set forth in Exhibit B hereto (the "Site"). The Redevelopment Property equals fifteen acres (plus/minus), of land together with all improvements and structures located on the land and easements and rights benefiting or appurtenant to the land. The exact dimensions and square footage of the project shall be determined by survey. The parties agree that the Site may be enlarged to include other lands at the mutual agreement of the parties. 2. Undertaking and Exclusive Rights. In consideration of the time, effort and expenses to be incurred by Redeveloper in pursuing the undertakings set forth herein and in further consideration of the amount of $2,500.00 paid to the Authority, the receipt of which is hereby acknowledged, the Authority hereby agrees that for the term of this agreement it 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 area covered by this agreement; and (ii) condemn or agree to proceed with the condemnation of any property within such area to assist or facilitate development within such area by a third parry. During such period the Redeveloper shall have the exclusive right to work with the Authority in establishing a definitive Redevelopment Agreement for the Redevelopment Property. Said exclusive rights shall continue, unless earlier terminated as provided herein, for a period of twelve (12) months from the date hereof, or until such later date as the parties may mutually agree. The above described fee is to be applied to payment of the Redeveloper's • JBD-162432 MLJ20(1-79 1 c. Tax Increment Financing. The Authority may be asked to establish a tax • increment financing district to support the Redevelopment Project; and agrees to give due consideration to any such request. d. Debt. The Authority may be asked to provide certain loans to the Redeveloper to support the Redevelopment Project. Any agreement by the Authority to make such loans will be subject the absolute discretion of the Authority and will also depend upon a clearly available source of funding, and appropriate security. 5. Redeveloper's Proposed Use, Minimum Improvements. The minimum improvements will be made pursuant to plans which are acceptable to and approved by the Authority as part of the redevelopment agreement. The minimum improvements are anticipated to include the redevelopment of a downtown office-retail and active 62 plus senior housing complex which will be similar to the Mound Visions plan as set forth on Exhibit A hereto. 6. Ownershiy. It is expected that the final redevelopment proposal will provide that the retail portion and the rental housing portion of the Project (assuming that rental housing is approved by the Authority) will be owned by the Redeveloper or its assignees, and that certain condominiums, townhomes, or single family homes will be sold by the Redeveloper or its assignee to others. 7. Contemplated Redevelopment Schedule. The contemplated Redevelopment Schedule is as follows: (Schedule assumes that portions may be constructed in phases; and that the roadway construction can be advanced.) Preliminary Redevelopment Agreement: Contract for Private Redevelopment: Closing Date: Construction Start Date: First Retail Tenant Move In Date: First Residential Tenant Move In Date: May, 1999 November, 1999 April, 2000 May, 2000 Mazch, 2001 March, 2001 8. Contin eg ncies. It is expected that the Redevelopment Contract will address the following items which the parties acknowledge maybe material to the Project: a. creation of a tax increment financing district, and determination of the portion of tax increment which will be made available to the Redeveloper; b. the acquisition of all or part of the Redevelopment Property by direct purchase or condemnation, on such terms and conditions acceptable to the Authority and as determined by the Authority in its sole and absolute discretion.. c. acceptance by the Redeveloper of a Phase I and, if requested, Phase II environmental assessment and all other environmental and wetland reports and surveys certified to the Redeveloper and its lender, deemed necessary by the Authority and the LJ JBD-162432 MU200-79 3 i .-.1~...-.,.-_........~lL.. ~ .~ Y Redeveloper for all of the property located within the Project, which reports and surveys must be satisfactory to the Authority and the Redeveloper; d. the Authority and the Redeveloper have obtained all necessary approvals for the Project from any participating governmental authority including but not limited to any necessary watershed district; e. all zoning modifications, rezoning approvals and conditional use permits necessary to allow the Project to move forward have been granted; f. the title commitment for the Redevelopment Property shall have been found acceptable to the Redeveloper in its sole discretion; g, testing results are satisfactory to Redeveloper including but are not limited to: soils, well, engineering, hazazdous waste, and environmental reviews; h. financing acceptable to Redeveloper; i. the Authority agreeing to cooperate with the Redeveloper's lender and HUD and agreeing to execute any and all reasonable documents including typical subordination documents with respect to said lenders or any replacement lenders, provided that the Authority may refuse to enter into any such documents if it, in its reasonable discretion determines that to do so would create an unreasonable risk to it, jeopardize any of its security, or make it less likely that the project would be developed as contemplated; j. the Authority delivering, at its sole cost and expense, an ALTA 1997 survey, including all Table A optional requirements Nos. 1 through 16 inclusive, acceptable to the Redeveloper; k. the Authority and Redeveloper entering into any necessary reciprocal operating and easement agreements to provide the necessary access to permit construction of the Project, and to coordinate and facilitate vehiculaz and pedestrian ingress and egress to the Project and the joint use, maintenance and repair of all Project common areas, utilities and parking lots. • 9. Affiliated Parties. The Authority acknowledges that the Redeveloper, may assign any or all of its duties hereunder to The Beazd Group, Inc. or another entity which is controlled by William H. Beard and Paul Gamst. The Authority also acknowledges that William H. Beazd and Paul Gamst are both owners of The Beard Group and the Redeveloper and aze licensed real estate brokers in the State of Minnesota. The Beazd Group, Inc., is a licensed real estate brokerage firm. Said entity or individuals may be entitled to real estate commissions arising out of some of the foregoing transactions, but agree to make no claim for brokerage fees or real estate commissions against the Authority. In addition, the Mayor of the City of Mound, and her husband, currently own certain real estate located within the Project. The Redeveloper has entered into certain preliminary discussions with the Mayor about participating in the foregoing Redevelopment Project. The parties n3D-162432 MU200-79 4 ~. - acknowledge that the transactions contemplated in this agreement and in the redevelopment . agreement will always be subject to any limitations imposed by law upon the official actions of the Mayor. 10. Termination. This agreement may be terminated by the Authority as to all or a portion of the property upon the giving of written notice to the Redeveloper that the Redeveloper is not diligently pursuing the redevelopment of the portions of the property terminated.Redeveloper shall have a reasonable time, but in no event less than 30 days to effect a cure of such default, or to demonstrate that it is diligently pursuing such cure. The Authority may also terminate this agreement for the failure of the Redeveloper to make any payment due in accordance with paragraph 12 below. 11. Legislative Judgment. Redeveloper understands that many of the actions which the Authority may be called upon to take require its reasonable discretion, and in some instances, its legislative judgment. Such actions may only be made following established procedures, and the Authority can not agree, in advance, to any specific decision in such matters. 12. Consultant to be Retained. The Authority intends to retain the services of Sid Inman of Ehlers & Associates upon the execution of this agreement. Mr. Inman is being retained to assist the Authority in the technical matters such as district creation, certification and sizing, tax increment calculations, "but-for" analysis, and other factors pertaining to any claim for economic assistance. Redeveloper agrees that it will be responsible for reimbursing the Authority for fees and expenses paid by the Authority to such consultant which directly relate to the Project, and will do so within 30 days following receipt of any request to do so. • 13. Notices. All communications shall be directed to the Redeveloper at the address listed above with copies to: Attorney for the Redeveloper: Frank B. Bennett Lindquist & Vennum P.L.L.P. 4200 IDS Center 80 South Eighth Street Minneapolis, Minnesota 55402 Telephone: (612) 371-3931 Facsimile: (612) 371-3207 All communications shall be directed to the Authority at the address listed above with a copy to: Attorney for the Authority: • JBD-162432 MLT200-79 5 John B. Dean Kennedy & Graven, Chartered 470 Pillsbury Center Minneapolis, Minnesota 55402 Telephone: (612) 337-9207 Facsimile: (612) 337-9310 ~~~ .'R .._.'! ~....._ _...,_ ' ' _ ~ l IN TES'I'IlVIONY WHEREOF, the parties hereto have set their hands as of the date and • year fast above written. MOUND MAINSTREET, INC. sy: Its HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY O MOUND By: Its: Acting G ~ R l R B. Its: Executive Director • IBD-162432 MU200-79 6 .. r r EYHIBIT 8 REDEVELOPMENT PROPERTY DESCRIP?TON I.angdon District: That tract of sand generally lying south of the railroad line, west of Commerce $oule~ard, east of Lake Langdon and north of Our I,,~y of the Lake Church. Auditor'` Road Distract: That tract of Iand lying generally south of the railroad ~~, cast of Commerce Boulevard. north of the new Auditor's road as shown on Exhibit A, and west of the future alignment of Co. Rd. l5 as shown on Exhibit A, • • --~-., ~..