1999-06-22~'"` Mound HRA Meeting Minutes
June 22, 1999
' Page 1
• MOUND HRA MEETING
June 22,1999
The Housing and Redevelopment Authority of the City of Mound, Hennepin County, Minnesota, met in a regular
session on Tuesday, June 22, 1999, at 5:00 PM, in the Council Chambers at 5341 Maywood Road, in said City.
Those present were Mayor Pat Meisel, Council members: Andrea Ahrens, Bob Brown, Mark Hams, Leah
Weycker. Also in attendance were City Attorney John Dean, Acting City Manager Fran Clark, HRA Director
Pinky Chazon, Assistant City Planner Bruce Chamberlain, Assistant, Finance Duector Gino Businano and
Tenant Representative, Pauline Payne.
Mayor Meisel called the meeting to order at 6:07 p.m.
The first item of business was the approval of the consent agenda which included the minutes of the May 11,
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 independent audit report for 10/1/97 to 9/30/98. A motion to accept this audit
report was made by Mazk and seconded by Andrea. The motion was called and passed unanimously.
The next item of business was the H.R.A. Budget for 101/99 to 9/30/00. A motion to adopt resolution number
1 "approval of the Operating Budget and calculation of the Performance Funding System Opening Subsidy"'
~s made by Andrea and seconded by Mark. The motion was called and passed unanimously.
TAX INCREMENT FINANCING
Sid Inman, a consultant with Ehlers and Associates, Inc. presented TIF (Tax Increment Financing) basics to the
Council and HRA members. The city is addressing the possibility of making the downtown azea a TIF district.
A significant amount of redevelopment is needed and this would be one way of financing it. He passed out two
handouts: Tax Increment Basics and How to Calculate Tax Increment.
Initial TIF legislation allowed some things that today's laws do not. The recent legislature has made some of
these changes which no longer allow pooling outside the TIF district into the project azea. The intent of TIF is to
level out the playing field between newer and older cities and to allow for redevelopment in a manner that is
affordable to cities. TIF financing is monitored and regulated by the State Auditor's office.
Cities aze allowed to use the increment taxes above the value of a property to improve/redevelop other areas
within the district. Two types of districts include economic development/industrial and residential. Certain items
aze not allowable under TIF rules.
Brown asked if TIF could be applied to an individual. Mr. Inman responded that was a policy decision made by
the City Council. This policy should be determined prior to meeting with developers.
Dean asked what the impact of TIF was on other aspects of taxes. Inman responded that if the "but for... "test is
plied, then neither the county nor the school districts aze impacted. The State would make up the difference.
Mound HRR Meeting Minutes
June 22, 1999
Page 3
•JTION by Hanus, seconded by Brown, to move Resolution #99-2 as amended. Motion Carried 4-0.
Inman stated that this needed to be presented to the Planning Commission to assure compliance with the
Comprehensive Plan.
Hanus turned the meeting back over to Mayor Meisel.
The Mayor suggested that all commissions/boards meet jointly after the July 13~' dates. She suggested a
Saturday morning. The project area is amendable until August 8, 1999.
Mayor Meisel discussed the Evergreen Lawn Service Company letter.
The School District asked if the City wanted to increase their offer.
Hanus stated the "timing was very interesting, we make an offer, and the asking price goes up $300,000." He is
not really sure that land downtown is really worth that much. Land almost seems unbuildable. Ahrens also
stated that she had difficulty offering $1.8 million.
Chamberlain stated that the appraisal did come in at $2.1 million. Ahrens asked if the appraiser considered the
wetlands involved.
Brown asked if their offer included all 19 acres. Ahrens stated that her understanding was that the $1.8 million
included everything and the school district demolishes the buildings.
~ayor Meisel stated that she was comfortable with the $1.8 million, but had problems with the $2.1 million
price. She asked at what point do you draw the line and at what point is redevelopment workable. Weycker feels
the City is running out of time to make another offer.
Chamberlain indicated that the school board would be reviewing the offers on July 24~'. He needs authorization
from the City Council to actually do a purchase agreement and set the terms. He indicated the primary use
proposed for that site is the Post Office. If they do not get the bid, then another site will need to be located.
Hanus stated that he did not want to overpay for the property, but feels they need to get that land so he might
consider increasing the offer. Weycker stated it was foolish to lose the land and is willing to go with the
appraised amount.
Ahrens stated she would not go above $1.8 million. Brown also stood at this level. He feels the business owners
need to be considered also. Resolution number 99-3, "Purchasing Agreement for Community Center Building a
and Property" (a copy attached).
MOTION by Brown, seconded by Hanus, to offer a purchase price of $1.8 million for the school district property
with the mentioned contingencies, and to authorize the HRA staff to draft a purchase agreement to determine
contingencies under direction from the Council; and to execute the purchase agreement. Motion carried 5-0.
Dean stated that one contingency needed to be included is that the purchase price cannot be inflated by the use of
TIF funds beyond the fair market value.
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Mound HRA Meeting Minutes
June 22, 1999
Page 4
• MOTION by Hanus, seconded by Ahrens, to adjourn. Motion carried 5-0.
The meeting was dajourned at 7:35 p.m.
Submitted
IC'~rol Charon, Executive Director
Pat Miesel, Chairperson
~~v~`~/
Date
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HRA RESOLLTrION N0. 99-3, Purchase Agreement for Dommtmity Center
1~URC8ABE AGREEMENT
Mound, Minnesota
199_
IN CONSIDERATION OF TH8 MUTUAL COVENANTS, DUTIES AND
08LIGATIONB CONTAINED HEREIN, the HOUSING AND REDEPELOPMENT
]1UT80RITY IN AND FOR T8B CITY OF MOUND, a Minnesota public body
corporate and politic, having its principal place of business at
5341 Maywood Road, Mound Minnesota 55364 ("BUYER"), hereby agrees
to the purchase of property situated in the County of Hennepin,
State of Minnesota, and legally described in the attached Exhibit
A. (^ Propertyl~ )from the undersigned INDEPENDENT BCHOOL DI8TBICT
N0. 279, a goverrunental subdivision of the State of Minnesota
having its principal office at 5600 Lynwood Boulevard, Mound,
Minnesota 55364("SELLER"j, said SELLER agreeing to sell such
Praperty to BUYER for the sum of One Million Eight Hundred Thousand
Dollars {$1,800,000) which BUYER agrees to pay in the following
manner:
Paymeat in full at the time of closing.
TEE CONDITIONS AND TERMS OF THIS PURCHASE A{iREEMENT INCLUDE
T88 FOLLOiPING:
1.. DEED/MARKETASLB TITLES Subject to performance by BUYER,
SELLER agrees to execute and deliver at the time of closing a
warranty deed conveying marketable title to said Property,
subject only to the following exceptions:
(a) Building and zoning laws, ordinances, state and federal
regulations;
2. POSSESSION-CONDITION Except as the parties may agree pursuant
to paragraph 9F, BUYER is purchasing cleared land with all
improvements including, without limitation, footings,
foundations, private utility services removed. SELLER agrees
to deliver possession not later than the date of closing.
3. COSTB AND PRO RATIONS: SELLER and BUYER agree to the
following pro rations and allocations of costs regarding this
Agreement:
A. Deed Tax. SELLER shall pay alI state deed tax
regarding a Warranty Deed and any other documents necessary to
place record title in the condition warranted and to be
delivered by SELLER under this Agreement.
H. Taxes and Assessments. SELLER shall pay all real
estate takes due and payable in the years prior to the year of
closing together with all penalties and interest thereon.
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Real estate taxes due and payable in the year of closing will
be prorated as of the date of closing.
SELLER shall pay all special assessments due and payable
and levied as of the date of closing. BLtYER shall pay all
spacial assessments levied on said Property after the date of
closing.
SELLER makes no representation or warranty whatsoever
concerning the amount of real estate taxes or assessments
which shall be assessed or levied against the Property
subsequent to the date of this Purchase Agreement.
C. Reoordinq eoa~. SELLER shall pay the costs of
recozding all documents necessary to place record title in the
condition warranted, and the BUYER shall pay the cost of
recording all other documents.
D. S~osing Costs. SELLER shall pay the costs of closing
required to place good title in BUYER'S name (i.e., deed
drafting, SELLER'S Affidavit, any required corrective
instruments, State of Minnesota deed tax, recording costs far
deed and corrective instruments, etc.).
4. BQBDIVIBiON OF LAND/LEGAL DESCRIPTION TO PROPERTYS If this
sale constitutes or requires a subdivision of land owned by
SELLER, SELLER shall pay all subdivision expenses and obtain
all necessary governmental approvals. ~ SELLER warrants that
the legal description of the real property to be conveyed has
been or will be approved for recording as of the date of
closing. Both parties understand that all real estate taxes
due and payable in the year of closing will need to be paid as
stated below at closing in order far a parcel or subdivision
or lot split to be recorded.
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S. TITLE: SELLER agrees and warrants that the BUYER shall
receive "marketable title" at the time of transfer of the
Property from SELLER to BUYER. Within a reasonable time after
acceptance of this Purchase Agreement, SELLER shall furnish to
BUYER an abstract of title or registered property abstract,
certified to date to include proper searches covering
bankruptcies, state and federal judgment and liens and levied
and pending special assessments. Buyer shall have 30 business
days after receipt of the abstract to examine the same and to
deliver written objections to title, if any, to SELLER.
SELLER shall then have until the closing date to make title
marketable at SELLER's cost. Zn the event that title to the
Property cannot be made marketable, or is not made marketable
to the SELLER by the closing date, then, at the option of the
BUYER, this Agreement shall be nu21 and void; neither party
shall be liable to the other; any earnest money will be
refunded, and the parties agree to sign a cancellation of this
Agreement
6. DEF7IULT: If the title to the Premises be found marketable or
be so made within said time, and BUYER 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,
SELLER 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.
7. CONTINGENCI88L This Purchase Agreement is subject to the
following contingencies:
A. Environmental. BUYER shall have 60 days from the date
of this agreement to inspect the Property and to prepare
or cause to have prepared such reports and studies as
may in the BUYERB s judgment be necessary to determine
whether the Property is free of contamination or
pollution. BUYER may terminate this agreement if it is
not satisfied that the Property is free of such
pollution or contamination.
B. Soils. BUYER shall have 60 days from the date of this
agreement to inspect the Property and to cause to have
prepared such reports and studies as may in BUYER's
judgment be necessary that the condition of the soils is
such as to permit the use of the Property for its
intended purpose. The BUYER may terminate this
agreement if it is not so satisfied.
C. Tax Increatent District. It is a precondition to the
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BUYER'S obligation to purchase the Property that a tax
• increment district be established which includes the
Property.
~• ~inauainq Tt is a precondition to the BUYER'S
obligation to purchase the Property that the BUYER has
been able to satisfy the legal requirements for the sale
and issuance of tax increment obligations to pay the
purchase price. BUYER shall have nv obligation to
proceed with the purchase if such financing is not
available to finance the entire purchase price.
E. BUYER shall have received an opinion from SELLER~s
counsel certifying to BUYER that SELLER has full
authority to enter into the transaction, that all
actions to be taken by SELLER have been duly approved by
Seller's governing body and that no other approvals are
required to complete the transaction.
F. SELLER has provided the BUYER with an acceptable
instrument whereby SELLER a. waives and releases BUYER
from any claim SELLER may have far relocation benefits
and assistance, and b. agrees to indemnify and hold
harmless the BUYER from any such claims from others.
G. BUYER is satisfied as the result of a survey of the
Property 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.
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 of inspecting the Property.
8. WELL AND BEPTiC BYSTEM DISCLOSDBE: The SELLER certifies that
SELLER does no know of any wells on the described real
Property. Provided however, if the Property does contain
wells, the cost of sealing any wells required to be capped or
sealed under Minnesota law will be borne by the SELLER. If
the well is not sealed by the date of closing, SELLER shall
escrow a sum equal to two times the bid price from a licensed
well sealing contractor to complete the sealing process.
SELLER shall prepare, execute and file any required well
certificate at or before closing. If the Property has a
septic system, SELLER agrees to provide water quality test
results and/or septic system certification as required by
state law or local ordinance.
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8.1 I.8~1D BASED PAIN? DISCLOSIIRE. BUYER acknowledges thQ receipt
• of a lead based paint disclosure on the attached Exhibit B.
9 • CTSEA QENERAI+ AND SPECIAL WARRANl'IES s
A• ~aht of Access: SELLER warrants that there is a
right of access to the Property from a public right of
way.
B. sechaaic~s
the closing dat Lienss SELLER warrants that, prior to
e
SELLE
,
R has made any and all payments
in full for all labor, materials, machinery
fixtures
,
or
tools furnished within the 120 days immediately
preceding the
l
c
osing date in connection with
construction, alteration or repair of a
ar improvement
d l ny structure on
(including, but not limited to grading
an
andscaping, etc.) to the Property, if any.
C. Removal of
debris and all
d Debris: SELLER agrees to remove all
personal property from the Property b
ate BUYER takes y
possession of the Property.
n. Buildincs: SELLER warrants that buildings, if any,
are entirely within the boundary lines
f th
o
e Property.
E. t c s: SELLER warrants that SELLER has not received
any notice from any governmental authority as to
violation of any 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.
F. ~iolition: SELLER will cooperate with BUYER to the
extent feasible in coordinating the timing of demolition
activities on the Property; and in modifying demolition
specifications to preserve structures or portions of
structures which may have reuse potential.
10. ENVIRONMENTAL wARRANTy= SEAR warrants that tv the best of
the SELLER's knowledge no toxic or hazardous substances,
including, without limitation, asbestos, urea formaldehyde,
the group of organic compounds known as polychlorinated
biphenyl, and any substance as defined or listed as "hazardous
materials" or "toxic substances" or similarly identified in or
pursuant to the Comprehensive Environmental Response,
Compensation and Liability Act of 1980 ("CERCLA"), 42 U.S.C.
Section 9601-9657, as now or later amended, "hazardous
materials" identified in or pursuant to the Hazardous
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Materials Transportation Act, 49 U.S.C. Section 1802, et seq.,
• as now or later amended, "Hazardous wastes„ identified in or
pursuant to The Resource Conservation and Recovery Act of 1976
( RCRA ), 42 U.S.C. Section 6901 et seq., as now or later
amended, any chemical substances or mixture regulated under
the Toxic Substances Control Act of 1976, 15 U.S.C. Section
2601, et seq., as now or later amended, any "toxic pollutant"
under the Clear Water Act, 33 U.S.C. Section 1251 et seq., as
now or later amended, any hazardous air pollutant under the
Clean Air Act, 42 U.S.C. Section 7901 et seq., as now or later
amended, and any hazardous or toxic substance or pollutant now
or later regulated under any other applicable federal, state
or local Environmental Laws, have been generated, treated,
stored, released ar disposed of, or otherwise deposited in or
located on the Property, including without limitation, the
surface and sub-surface waters of the Property, nor has any
activity been undertaken an the Property which would cause the
Property to become a hazardous waste trentment, storage or
disposal facility within the meaning of, or otherwise, bring
the Property within the ambit of, any of the aforementioned
acts or any similar state law or local ordinance or any other
Environmental Law. SELLER also warrants that to the best of
SELLER'S knowledge there are no substances or conditions in or
on the Property which may support a claim or cause of action
under any of the aforementioned acts or any other federal,
state or local environmental regulatory requirement and that
no underground deposits which cause hazardous wastes or
underground storage tanks of any type are located on the
Property.
i1. BIIRVIVAL OF REpREgENTATIONB AND WARRANpIEB: All of the
representations, warranties, covenants and agreements of the
parties hereto contained in this agreement shall survive the
closing of the transaction contemplated herein and the
delivery of any documents provided for herein and shall not be
merged into any other agreement.
12. RIS1~ OF L083 If the Property is destroyed or substantially
damaged before the closing date, this Purchase Agreement shall
become null and void, at the BUYER's option, and earnest money
shall be returned to BUYER. If such an event occurs, BUYER
and SELLER agree to sign a Cancellation of Purchase Agreement
within a reasonable time after such event takes place.
Demolition of the improvements presently on the Property shall
not be deemed to be such damage or destruction unless such
demolition results in the incidental damage to the Property
such as by the release of hazardous chemicals.
s3. TI1~ of ESSENCE: Time is of the essence in this Purchase
Agreement.
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14' CLOBZNG DAT3 AND LOCATIONS Closing sha31 take place at any
• location which is mutually acceptable to the parties. Closing
shall occur not later than 45 days after all of the
preconditions to closing have been satisfied or waived.
unless extended by the mutual agreement of the parties, this
agreement shall be null and void if the closing has not taken
place by December 31, 1999.
1S. 71DDiTZONAL DOCIIMENTB: BUYER and SELLER agree to cooperate
with the other and their representatives regarding any
reasonable requests made subsequent to the execution of this
Purchase Agreement to correct any clerical errors in this
Purchase Agreement and to provide any and all additional
documentation deemed necessary by either party to effectuate
the transaction contemplated by this Purchase Agreement.
15. NOT2CE8s Any notice required or permitted to be given by any
party upon the other is given in accordance with the Agreement
if it is directed to the SELLER by delivering it personally to
the SELLER; yr if it is, directed to the BUYER, by delivering
it personally to an officer of the BUYER; or to either party
if mailed in a sealed wrapper by United States registered or
certified mail, return receipt requested, postage prepaid; or
if transmitted to either party by facsimile, copy followed by
mailed notice as above required; or if deposited by either
party, cost paid with a nationally recognized, reputable
overnight courier, properly addressed as follows:
IF TO THE SELLER:
• Independent School District No. 277
5b00 Lynwood Boulevard
Mound, Mn 55364
IF TO THE BUYER:
Housing and Redevelopment Authority
in and for the City of Mound
5341 Maywood Road
Mound, Minnesota 55364
ATTN: Executive Director and City Manager
AND COPY TO:
John 8. Dean
KENNEDY & GRAVEN, CHAR`PERED
470 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 55402
Notices shall be deemed effective on the earlier of the
date of receipt or the date of deposit as aforesaid;
however, that if notice is given by deposit, that thepimedfor
the response to any notice by the other party shall commence
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Ir11t1fICWfIRU, u~t;~~uniy W U1C +c~.u~~cti ~w~ urcicvi, r~ci~~~cNu. ~.vu~~~r, mn~ncavw, vvc,uw~
Ridgewood Avenue and vacated alley originally detineoted and dedicated in said plat of
"Lynwotd Pork" Lake Minnetonka.
Also
" ~t 18, "Lynwold Park" Loke Minnetonka, according to the recorded plot thereof, Hennepin
~unty, Minnesota, except the north 30.00 feet thereof.
Also
Lots 90, 91, :~2, 93, 94, 95, 96. 97, 98, 99. 100, 101, 104, 105, 106, 107, 108, 109,
110, 111, 11i, 113, 114, 115, "MOUND", according to the recorded plat thereof, Hennepin
Hennepin County. Minnesota.
AI so
Those ports of Lots 102 and 103, "MOUND", according to the recorded plot thereof,
Hennepin County, Minnesota, which tit easterly of the east line of the west 200.00 feet of
the Northeast Quarter of the Southeast Quarter of Section 14, Township ~ 17 North, Range
24 West of the 5th Princ'spol Meridian.
Also
That port of Meadow Lane, as detineoted and dedicated on the plot of "MOUND", according
to the recorded plot thereof, Hennepin County, Minnesota, and now vacated, which lies
easterly of the west 200.00 feet of the Northeast Quarter of the Southeast Quarter of
Section 14, Township 117 North. Rouge Z4 West of the 5th Principal Meridian, and westerly
of the southerly extension of the west line of Oewe~ Avenue, now known os Bellaire Lone,
os delineated and dedicated in said plot of "MOUND
Also
~e South Holf of the Northeast Quarter of the Southeast Quarter of Section 14, Township
117 North, Range 24 West of the 5th Principal Meridian. except the west 200.00 feet
thereof, oleo except that Dort within tfie plat of "MOUND', according to the recorded plot
thereof, Hennepin County, Minnesota, and except that part described os follows:
Commencing of the northeast corner of sold South Holf of the Northeast Quarter of
the Southeast Quarter; thence southerly, along the cost line of said Southeast
Quarter, a distance of 225.00 feet; thence westerly, parallel with the north line of
sold So~lth Hclf of the Northeast Quarter of the Southeast Quarter, to the
intersection with the southerly extension of the west line of Dewey Avenue, raw
known as Bellaire Lane, os delineated and dedicated in the plot of "MOUNC~ : thence
northerly along said southerly extension to the north line of sold South Haff of the
Northeast Quarter of the Southeast ~Quorter; thence easterly, along sold north line
to the point of beginning.
And except that port of said South Holf of the Northeast Ouorter of the Southeosc Quarter
described os follows:
Beginning of o point on the cost tine of svid Northeast Quarter of the Southeast
Quarter, distant 225.00 feet southerly from the northeast corner of said South
Hotf of the Northeast Quarter of the Southeast Quarter; thence westerly, parallel
with the north tine of soil South Holf of the Northeast Quarter of the Southeast
Quarter, o distance of 398.63 feet; thence southerly. deflecting to the left 90
degrees 00 minutes 00 seconds, o distance of 158.39 feet; thence eosteriy,
deflecting to the left 89 degrees 57 minutes 22 seconds, to said east line of the
Northeast Quarter of the Southeast 'Quarter; thence northerly along said east tine
to the point of beginning.
6Z ~ L0 66 ~ bZ Nf1J' £0d SLb iy3~J3071 NOlJN I S I OH 8~B98~~-ZT9
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Ana except that- port of said South Half of the Northeast Quarter of the Southeast Quarter
described as follows:
beginning of a point on the evst line of said Northeast Quarter of the Southeast
' Quarter, distant 225.00 feet southerly from the northeast corner of sold South
,.~ Hvlf of the Northeast Quarter of the Southevst Ouorter; thence westerly, parallel
• with the north .line of said South Holf of the Northeast Quarter pf the SOUthCGSt
Quarter, a distance of 398.63 feet; thence southerly, deflecting to the Left 90
degrees 00 minutes 00 seconds, o distance of 158.39 feet; thence easterly.
deflecting to the left 89 degrees 57 minutes 22 seconds, to said east line of the
Northeast Quarter Of the SOUthsOSt nUarter; thence northerly along sCid east line
to the point of beginning.
•
•
• to run one (1) business day after any such deposit. An
may change its address for the s
Y party
i
erv
ce of notice b
Y giving
written notice of such change to the other
a
manner above specified, ten l0 da s P ~'' °r in any
date of such change. ~ ~ Y Prior to the effective
17. EEECIITIpN IN ~~L"RPART82 This Purchase Agreement may be
executed in counterparts by the
i
part
es hereto.
28. EbiTISR J-GAEF•MEN'1': This Purchase Agreement, any attached
exhibits and any addenda
or amendments signed by the parties
shall constitute the entire
agreement between SELLER and
BUYER, and supersedes any other written
or oral agreements
between SELLER and BUYER. This Purchase Agreement can only be
modified in writing si
ned b
g
y SELLER and BUYER,
19. Waiver and Salease: At the closing, the SELLER will provide
the BUYER with an instrument in
form acceptablQ to the BUYER
that releases from, and waives any claims against eith
or th
er BUYER
e City of Mound, their officers, agents or employees
occasioned by or arising out
f
o
any action or decision of
either the City or BUYER relating to a
proposed use of
portions of the Property as a community center.
sale The undersigned, do hereby approve the above Agreement and the
thereby made.
Date: ~r'~,Q ~' q
• BELLES= -
I~JDaP SCHOOL DISTRICT NO. 777
By: ,
Its Chair
By:
Its Superintendent
HOUBINd AND REDEVELOPMENT AUTHORITY
IN 2ND I'OS THE CITY OF MOUND
Bl'
Its Chair
This instrument was drafted by:
KENNEDY ~ GRAVEN, CHARTERED (JBD)
470 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 55402
612-337-9300
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Creative SeIutioa~ for Land Tl~nniar and Deti~n
June 23, 1999
Hoisington Kocgler Group Inc.
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Ms. Virginia MaeCharles
RE/MAX Al Excellence
2477 Shadywood Road
Excelsior, MN 55331
Re: Westonka Schools property. '
Dear Ms. MacCharies:
On behalf of the City of Mound's broker, Bud Storm, I would like to extend the enclosed offer for
the roughly 19 acre Westonka School District property in downtown Mound, Minnesota, The
Mound HRA directed Staff to draft the purchase agreement at their meeting last evening. The
offer is extended for the entire parcel of land including the building site, athletic field area and
residential property,
As we have discussed, the City of Mound's interest in acquiring the praperty has a number of
facets that include using a portion of the site for a new post office, preserving a component of
public green space on the property, connecting a ribbon of open space from the southeast corner
of the site to the larger green space, considering parking needs for the Pond Arena and finally
ensuring that an eventual development project is compatible with the Mound Visions gian.
The City of Mound is aware that there will likely be multiple offers on the property. Staff's
experience in other communities has shown that when Tax Increment Financing is a prospect on a
saleable property it can tend to artificially inflate the value of that property. The City of Mound
intends to establish a TIF district in the near term that would include the property in question.
The City of Mound will determine, at its sole discretion, what projects will be considered for T>F
and to what level. Should an offer other than the City of Mound's be accepted, the City of
Mound wiI! work with the purchaser to the extent possible to put together a development project
in everyone's best interests. Please be aware though, that the City of Mound will not use TIF to
underwrite what it believes to bo inflated acquisition costs on this or other properties considered
for redevelopment.
The City of Mound appreciates your consideration of the enclosed offer. We welcome the
opportunity to review and discuss elements of the purchase agreement at your discretion.
Bruce L. Chamberlain
Vice President
Consulting Mound Visions Coordinator
Sincerely,
~.
~llllEl. pc~ `l~~
Cc: Pat Meisel, Chair, Mound HRA
Pinky Charon, Mound HRA Executive Director
John Dean, Mound City Attorney
Bud Storm, Acquisition Specialist
123 North Third Street. Suite 100, Miaacapolis, MN SSapI.16S9
Ph (612) 338-0800 ~c (612) 338-6838
6Z ~ L0 66 ~ bz Nflf Z6d SLb 213~930~f N019N I S I OH 8~B98S~-ZT9
i
Mound HRA Meeting Minutes
Tune 22, 1999
Page 5
• Hanus stated that he did not want to overpay for the property, but feels they need to
get that land so he might consider increasing the offer. Weycker stated it was foolish
to lose the land and is willing to go with the appraised amount.
Ahrens stated she would not go above $1.8 million. Brown also stood at this level.
He feels the business owners need to be considered also.
MOTION by Brown, seconded by Hanus, to offer a purchase price of $1.8 million
for the school district property with the mentioned contingencies, and to authorize the
HRA staff to draft a purchase agreement to determine contingencies under direction
from the Council; and to execute the purchase agreement. Motion carried 5-0.
Dean stated that one contingency needed to be included is that the purchase price
cannot be inflated by the use of TIF funds beyond the fair market value.
MOTION by Hanus, seconded by Ahrens, to adjourn. Motion carried 5-
0.
The meeting was adjourned at 7:25 p. m.
r
MOUND HOUSING AND REDEVELOPMENT AUTHORITY 2020
COMMERCE BLVD.
MOUND, MN 55364
MINUTES OF JUNE 22,1999
The meeting was called to order by chairperson, Pat Meisel at
6:OOPM in the
council chambers of Mound City Hall. In attendance were the
following: Andrea Ahrens„ Bob Brown, Leah Weycker, Mark
Hanus, Pinky Charon and Pauline Payne, Also attending -
Attorney John Dean, Bruce Chamberlain and Sid Inman.
The first item of business was the approval of the consent agenda which
included
~~ ~~-I
PHA/IHA Board Resolution Approving U.S. Department of Housing
Operating Budget or Calculation of and Urban Devclopmcnt
ierformance Funding System Office of Public and Indian Housing
perating Subsidy
u to eporUng ur en or t is co ec ton o m ormaUOn is estmate to averse minutes r res OMB A royal No. 2577-0026 F~c . 10/31/97
searchin existin data source g Pc ponce, tnc u mgt a ttme or revtewing tnstructtons,
g g s, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments
regarding this burden estimate or any other azpcct o[ this collection o[ information, including suggestions Cor reducing this burden, to the Reports
Management Officer, Office of Information Policies and Systoms, U.S. Department o[ Housing and Urban Devclopmcnt, Washington, D.C. 20410-3600
and to the Office of Management and Budget, Paperwork Reduction Project (2577-0026), Wazhington, D.C. 20503. Do not send this completed Corm to
either oC the above addressees.
Acting on behalf of the Board of Commissioners of the below-named Public Housing Agency (PHA)/Indian Housing
Authority (IHA), as its Chairman, I make the following certifications and agreements to the Department of Housing and
Urban Development (HUD) regarding the Board's approval of (check one or more as applicable):
/(date)
Operating Budget Submitted on: _ t0 ~a3 I ~!?'
Operating Budget Revision Submitted on:
Calculation of Performance Funding System Submitted on: ~ ~
Revised Calculation of Performance Funding System Submitted on:
I certify on behalf of the: (PHA/IHA Name) m ~ (~, ~, ~ ~~ that:
All regulatory and statutory requirements have been met;
. The PHA has sufficient operating reserves to meet the working capital needs of its developments;
3. Proposed budget expenditures are necessary in the efficient and economical operation of the housing for the purpose
of serving low-income residents;
4. The budget indicates a source of funds adequate to cover all proposed expenditures:
5. The calculation of eligibility for Federal funding is in accordance with the provisions of the regulations;
6. All proposed rental charges and expenditures will be consistent with provisions of law;
7. The PHA/IHA will comply with the wage rate requirements under 24 CFR 968.110(e) and (~ or 24 CFR 905.120(c)
and (d);
8. The PHA/IHA will comply with the requirements for access to records and audits under 24 CFR 968.110(1) or
or 24 CFR 905.120(g); and
9. The PHA/IHA will coinply with the requirements for the reexamination of family income and composition under
24 CFR 960.209, 990.115 and 905.315.
I herby certify that all the information stated within, as well as any information provided in the accompaniment herewith, is
true and accurate.
~rniag HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, (012:31 U.S.C.
3729,3802)
Board Chairman's Name (type) Si slur Datc:
•us.coanmm,rr;,aoROtb~: toss- aa-vzttrzoz~. form HUD-5257d(10i95)
Previous edition is obsolete re [. Handbook 7575.1
• IIRA RESOLUTION NO. ~ I "'
RESOLUTION ASSIGNING CERTAIN
DUTIES TO C1TY MANAGER
WHEREAS, The Housing and Redevelopment Authority in and for the City of Mound
("HItA"), has been duly created and operates in accordance with the provisions of
Minnesota Statutes Chapter 469 ("the Act") and its bylaws; and
WHEREAS, in accordance with the Act and its bylaws the HRA has from time to time
appointed individuals to serve as its Executive Director and to carry out the functions
assigned to the Executive Director by the Act and its bylaws; and
WHEREAS, the Executive D'uector has suggested that the HRA consider the
appointment of the City Manager of the City of Mound to serve and act in the capacity of
the Executive Director with respect to all matters pertaining to the _#1-2 Project Area and
to any tax increment districts which the HRA may create within such area; and
WHEREAS, the HRA has fully reviewed this suggestion and believes it to be
appropriate that it be approved.
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of)Viound, Minnesota that the City Manager of the City of
• Mound (or any individual who is officially acting in such capacity) is hereby authorized
and directed to perform the duties of Executive Duector in all matters pertaining to the 1-
2Project Area and any of the tax increment districts created or to be created within such
Project Area. In such capacity, the City Manager may execute pertinent documents as
Executive Director.
The authority granted by this resolution shall not be effective until all fidelity bonds or
other sureties required by taw to be made to cover such actions are in plane.
C/
I~'arol Charon, Executive Director Date
~~~
Pat Meisel, Chairperson Date
•
HRA RESOLUTION NO. 99-2
RESOLUTION REQUESTING THE CITY COUNCII. OF THE
CITY OF MOUND CALL FOR A PUBLIC HEARING ON THE
AND THE ESTABLISHMENT OF TAX INCREMENT FINANCING
DISTRICT NO. 1-2 (A REDEVELOPMENT DISTRICT).
BE IT RESOLVED, by the Board of Commissioners (the "Board") of the Housing and Redevelopment
Authority of the City of Mound, Minnesota (the "HRA") as follows:
WHEREAS, the City Council ("the Council") of the City of Mound, Minnesota (the "City") established
Townsquaze Development District pursuant to Minnesota Statutes., Sections 469.001 through 469.047, inclusive,
as amended, in an effort to encourage the development and redevelopment of certain designated areas within the
City; and
WHEREAS, the City is proposing the establishment of Tax Increment Financing District No. 1-2 (A
Redevelopment District), pursuant to and in accordance with Minnesota Statutes, Sections 469.001 through
469.047 and Sections 469.174 through 469.179, inclusive, as amended.
NOW, THEREFORE BE IT RESOLVED by the HRA Board of the City of Mound as follows:
1. The HRA hereby requests that the City Council call for a public hearing on August 24, 1999, to consider the
proposed establishment of a Tax Increment Financing District (A Redevelopment District), No. 1-2,
(collectively, the "Program and Plan") and cause notice of said public hearing to be given as required by law.
2. The HRA directs the Executive Director to transmit copies of the Program and Plan to the Planning
Commission of the City and requests the Planning Commission's written opinion indicating whether the
proposed Program and Plan are in accordance with the Comprehensive Plan of the City, prior to the date of
the public hearing.
3. The Executive Director of the HRA is hereby directed to submit a copy of the Program and Plan to file
Council for its approval.
4. The HRA directs the Executive Director to transmit the Program and Plan to Hennepin County and the
School District #277 in which Tax Increment Financing District No. 1-2 is located not later than July 23,
1999.
The foregoing resolution was moved by Boardmember Hanus, and seconded by Boardmember Brown.
The following Boardmembers voted in the affirmative:
Ahrens, Brown, Hanus, and Weycker.
The following Councilmembers voted in the negative:
none.
Chair Meisel abstained from voting.
., ~ C~~
3
At est: HRA Director
Approved by the Board on June 22, 1999.
HRA Chair