2010-06-08 HRA Agenda PacketPLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS. _ 4d-U
0 AGENDA
Page
1. Open meeting
2. Action approving agenda, with any amendments
3. Action approving minutes for May 25, 2010 regular meeting 1
0 4. Action approving claims 2 -5
5. David Newman representing Mound Harbor Renaissance Development 6 -11
requesting action approving an extension to the development agreement
A. Action amending and restating the addendum to the Contract for
Redevelopment
B. Action adopting Resolution Authorizing Amended and Restated 12
Addendum to Contract for Private Development
6. Adjourn
C7
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
•
MAY 25, 2010
The Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met in
regular session on Tuesday, May 25, 2010, at 7:25 p.m. in the council chambers of city hall.
Members present: Chair Mark Hanus; Commissioners David Osmek, Ray Salazar, and Heidi
Gesch.
Members absent: Commissioner Greg Skinner
Others present: Executive Director Kandis Hanson, City Clerk Bonnie Ritter, Community
Development Director Sarah Smith, City Attorney John Dean, Chuck Alcon, Tom Stokes, Steve
Johnson, Amanda Schwarze
1. Open meeting
Chair Hanus called the meeting to order at 7:25 pm.
2. Approve agenda
MOTION by Osmek, seconded by Salazar to approve the agenda. All voted in favor. Motion
carried.
3. Approve minutes
MOTION by Osmek, seconded by Salazar to approve the minutes of the May 11, 2010 meeting.
• All voted in favor. Motion carried.
4. Approve claims
MOTION by Salazar, seconded by Osmek to approve claims in the amount of $6,384.01. All
voted in favor. Motion carried.
5. Adjourn
MOTION by Osmek, seconded by Salazar to adjourn at 7:26 p.m. All voted in favor. Motion
carried.
Chair Mark Hanus
Attest: Bonnie Ritter, City Clerk
•
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JUNE 8, 2010 H.R.A. CLAIMS REPORT
1 052610HRA $60.00 MAY
060810HRA $9,418.25 JUNE
TOTAL $9,478.2-
-2-
0
0
r
10
A
CITY OF MOUND
Batch Name 052610HRA
06/02/10 1:05 PM
Page 1
CITY OF MOUND
Payments
Current Period: May 2010
Payment Computer Dollar Amt $60.00 Posted
$30.00
$30.00
Transaction Date 5/27/2010 Due 0 Wells Fargo HRA 10120 Total
Fund Summary BATCH Total
10120 Wells Fargo HRA
680 $ 60.00
Refer 52610 HOME LINE Ck# 003488 5/26/2010
Cash Payment E 680 - 49800 -434 Conference & Training 06 -09 -10 LANDLORD TENANT LAW
TRAINING, ROBERTS
Invoice 052610 5/26/2010 PO 22659
Cash Payment E 680 - 49800 -434 Conference & Training 06 -09 -10 LANDLORD TENANT LAW
TRAINING, PAUSCHE
Invoice 052610 5/26/2010 PO 22659
$60.00
•
$60.00
$60.00
Pre - Written Check $60.00
Checks to be Generated by the Compute $0.00
Total $60.00
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Y
t
CITY OF MOUND
06/02/10 1:03 PM
Page 1
Payments
•
CITY OF MOUND
Current Period: June 2010
Batch Name 060810HRA User Dollar Amt $9,418.25
Payments Computer Dollar Amt $9,418.25
$0.00 In Balance
Refer 60810 ALPHA RUG AND CARPET CLEANI
Cash Payment E 680 - 49800 -402 Building Maintenance
1ST FL HALLWAY, 2-4 SPOT CLEAN,
$1,075.16
COMMON AREA
Invoice 2706 6/8/2010 PO 22669
Transaction Date 6/2/2010
Wells Fargo HRA 10120
Total
$1,075.16
Refer 60810 BORDER STATES ELECTRIC SUPP _
Cash Payment E 680 -49800 -220 Repair /Maint Supply
LAMP, BULBS
$62.97
Invoice 900861840 6/8/2010
Transaction Date 6/2/2010
Wells Fargo HRA 10120
Total
$62.97
Refer 60810 BROOKE, ROBERT AND ASSOCIA
Cash Payment E 680 -49800 -220 Repair /Maint Supply
#208, #400 FIRE DOOR CLOSER
$1,370.93
Invoice 353529 6/8/2010 PO 22656
Transaction Date 6/2/2010
Wells Fargo HRA 10120
Total
$1,370.93
Refer 60811 CENTERPOINT ENERGY (MINNEG _
Cash Payment E 680 -49800 -383 Gas Utilities
04 -16 -10 THRU 05 -17 -10 #5746120 -4
$1,280.00
Invoice 060810 6/8/2010
Transaction Date 6/2/2010
Wells Fargo HRA 10120
Total
$1,280.00
•
Refer 60810 COVERALL CLEANING CONCEPTS
Cash Payment E 680 - 49800 -460 Janitorial Services
06 -10 CLEANING SERVICE
$596.36
Invoice 060810 6/8/2010
Transaction Date 6/2/2010
Wells Fargo HRA 10120
Total
$596.36
Refer 60810 CUSTOMER CONTACT SERVICES
Cash Payment E 680 - 49800 -475 Tenant Related Services 05 -18 -10 THRU 06 -14 -10 E -MAIL DELIVERY
$58.50
SERVICE
Invoice 5141 - 051810 6/8/2010
Transaction Date 6/2/2010
Wells Fargo HRA 10120
Total
$58.50
Refer 60810 ELLIOTTS PAINTING AND DECORA
Cash Payment E 680 - 49800 -402 Building Maintenance
#106 PAINT
$433.27
Invoice 1005093 6/8/2010 P022657
Cash Payment E 680 - 49800 -402 Building Maintenance
#112 PAINT
$826.21
Invoice 1005093 6/8/2010 PO 22657
Cash Payment E 680 - 49800 -402 Building Maintenance
#400 PAINT
$619.90
Invoice 1005093 6/8/2010 PO 22657
Transaction Date 6/2/2010
Wells Fargo HRA 10120
Total
$1,879.38
Refer 60810 HOME SAFETY SOLUTIONS, INCO
_
Cash Payment E 680 - 49800 -401 Building Repairs
#402 MOD REMEDIATION
$375.00
Invoice 176 -B 6/8/2010
Transaction Date 6/2/2010
Wells Fargo HRA 10120
Total
$375.00
Refer 60810 IKON FINANCIAL SERVICES
Cash Payment E680-49800-202 Duplicating and copying
06 -23 -10 THRU 07 -22 -10 IMAGE RUNNER
$130.00
•
Invoice 060810 6/8/2010
Transaction Date 6/2/2010
Wells Fargo HRA 10120
Total
$130.00
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16
I*
I•
Pre - Written Check $0.00
Checks to be Generated by the Compute $9,418.25
Total $9,418.25
CITY OF MOUND
06/02/10 1:03 PM
Payments
Page 2
CITY OF MOUND
Current Period: June 2010
Refer 60810 MINNESOTA ELEVATOR, INCORP
Cash Payment E 680 -49800 -440 Other Contractual Servic 06 -10 ELEVATOR MAINTENANCE
$235.47
Invoice 060810 6/812010
Transaction Date 6/2/2010 Wells Fargo HRA 10120
Total
$235.47
Refer 60810 PROGRAMMED MANAGEMENT CO
Cash Payment E 680 - 49800 -301 Auditing and Acct'g Servi 05 -10 ADVANTAGE LICENSE
$213.75
Invoice 06012010400353 6/8/2010
Transaction Date 6/2/2010 Wells Fargo HRA 10120
Total
$213.75
Refer 60810 SIMPLEX TIME RECORDER COMP
Cash Payment E 680- 49800 -440 Other Contractual Servic 05 -10 -10 THRU 04 -30 -11 MONITORING,
$2,080.39
SPRINKLER TSETING, EXTG MAINT
Invoice 73605745 6/8/2010
Transaction Date 6/2/2010 Wells Fargo HRA 10120
Total
$2,080.39
Refer 60810 ZACKS, INCORPORATED _
Cash Payment E 680 -49800 -220 Repair /Maint Supply RUBBER SQUEEGEE, SHOVEL
$60.34
Invoice 25805 6/8/2010
Transaction Date 6/2/2010 Wells Fargo HRA 10120
Total
$60.34
Fund Summary
10120 Wells Fargo HRA
680 HRA PUBLIC HOUSING $9,418.25
$9,418.25
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The Bancor Group, Inc.
May 24, 2010
Ms. Kandis Hanson
Executive Director Mound HRA
City of Mound
5341 Maywood Road
Mound, MN 55364
Re: Mound Harbor
Dear Ms. Hanson:
/ r
The current Addendum to the Contract for Private Development for Mound Harbor requires
that Stage I of the Phase II Minimum Improvements commence not later than June 30, 2010.
On behalf of Mound Harbor Renaissance Development, LLC. I am requesting that this
deadline, together with all other deadlines contained in Section 3, paragraphs 1, 2 and 3 as
well as the deadlines contained in Section 5, also be extended by a period of 18 months.
As I realize you and the members of the HRA are aware, we are on the worst economic slump
in the past 70 years, which has obviously affected both residential and commercial
development. Because commercial development tends to lag residential development, we
anticipate that there will continue to be challenges in commercial development for the
immediate future.
Welsh Companies continues to market both the Auditors Road site as well as the vacant space
in the Caribou building. I believe that what they are experiencing in attempting to lease the
remaining space in the Caribou building is indicative of the challenges facing the market as a
whole. The Caribou store itself is a very large traffic generator for that building. The space we
have available for rent is relatively small. The principals of Welsh Companies are among the
owners of the Caribou building so they have a personal interest in having this space filled. Yet
in spite of the significant traffic at this site and in spite of the personal interest that Welsh
Companies has in seeing this smaller space get filled, they have been unsuccessful in doing so
for well over a year. What they have found is that while there have been a number of
potential tenants who have been interested in leasing the space, so far none are financially
qualified.
In further discussions with Welsh Companies they have reported to us that they are
beginning to see some movement of retailers, but at this time they are for the most part
limited to "A" locations. Because of the relative geographic isolation of Mound, they expect it
will be sometime until retailers are in a position to seriously consider expanding into a
location such as our project area.
1521 94th Lane N.E.
Minneapolis, Minnesota
55449
phone 763 792 -8974
fax 763 792 -8976
•
E
1A
We continue to be committed in our efforts to attempt to find appropriate users that would
enable us to proceed with the next phase. As a development team we continue to have
regularly scheduled updates so that we can keep abreast of current developments, Chuck
• Alcon continues to work on our behalf in an attempt to resolve remaining issues related to the
first phase and as team we continue to have over $1,000,000 invested in the redevelopment of
Downtown Mound. Additionally the principals of Mound Harbor Renaissance Development
are also among the principals of the ownership of the Caribou building. Consequently it is our
opinion that outside of the HRA and the City itself, there is no group more interested in
seeing the success of Mound Harbor than us. We believe that because of this significant
ongoing investment as well as continuing commitment by our partner Welsh Companies it
would be in the best interest for the HRA to continue our redevelopment agreement for this
requested time period of 18 months. I do not want to make any representations as to where I
believe we will be in 18 months from now, but it does seem to be a reasonable length of time,
after which the authority will then have the flexibility to determine whether or not they wish
to continue our agreement or to terminate the same.
In closing let me emphasize that we have a substantial investment in the downtown
redevelopment efforts, one of our principals is a local resident and has a deep personal
commitment to the success of this effort as do the rest of the principals. We believe that in
light of the extreme adverse economic conditions an 18 month extension is reasonable for all
parties, after which we can then collectively reassess our positions.
Thank you for your consideration. Please do not hesitate to contact me if you have any
questions.
Sincer ly yours,
David P. ewman
Chief Manager,
Mound Harbor Renaissance Development, LLC
Cc: John Dean
Cc: Tom Stokes
Cc: Jerry Paquin
Cc= Peter Pflaum
Cc: Chuck Alcon
0
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5/27/10
DRAFT •
AMENDED AND RESTATED
ADDENDUM
TO
CONTRACT FOR PRIVATE DEVELOPMENT
THIS AMENDED AND RESTATED ADDENDUM is made and entered into as of
the _ day of June, 2010 by and between the Housing and Redevelopment Authority in and
for the City of Mound, Minnesota, a public body corporate and politic (the "Authority") and
Mound Harbor Renaissance Development, LLC, a Minnesota limited liability company,
(the "Redeveloper ")
RECITALS
WHEREAS, the Authority and the Redeveloper entered into a Contract for Private
Redevelopment dated March 22, 2005, and subsequently amended by First Amendment to
Contract for Private Redevelopment dated July 5, 2005, and by Addendum to Contract for
Private Redevelopment dated April 22, 2008 (collectively, the "Contract"); and
WHEREAS, it is the desire of the parties to enter into this Amended and Restated •
Addendum in order to address matters that have occurred since the Addendum.
NOW THEREFORE, in consideration of the premises and mutual obligations of
the parties hereto, the parties hereby agree as follows:
Section 1. Scope and Intent of Amended and Restated Addendum The provisions of
this Addendum are intended to replace and supersede any provisions in the Contract
inconsistent with the provisions herein; but that otherwise, the Contract is to remain in full
force and effect according to its terms.
Section 2. Phase I. Commencement and Completion of Minimum Improvements
1. The parties acknowledge that construction of the Phase I Minimum
Improvements was commenced in a timely manner and in
accordance with the provisions of the Contract.
2. The time limits for completion of construction of the Phase I
Minimum Improvements are hereby released.
3. The Redeveloper agrees that it will continue with its efforts to
complete construction of the Phase I Minimum Improvements as
soon as reasonably possible.
Section 3. Phase II Commencement and Completion of Minimum Improvements •
369234v2 JBD MU 195-15
• 1. Construction of the Phase II Minimum Improvements will be done in stages.
The first stage, Stage I will involve the construction of a mixed use structure
located at the East end of Phase II. Construction of Stage I must commence
not later than January 1, 2012, and be completed not later than 15 months
after commencement.
2. Construction of Stage II of Phase II (Stage II may include all or part of Phase
II lying west of Stage I) must be commenced not later than two years after
commencement of Stage I, and be completed not later than 15 months after
commencement.
Construction of Stage III of Phase II (Stage III will include all of Phase II not
covered by Stages I and II) will commence not later than two years after
commencement of Stage II, and be completed not later than 15 months after
commencement.
4. If the Redeveloper fails to commence or complete construction of Stage I
within the time limits contained in 1 above, the Authority may terminate the
Contract as it pertains to the rights and obligations of Redeveloper to
construct the Phase II Minimum Improvements.
5. If the Redeveloper commences and completes the Stage I Minimum
• Improvements within the time limits contained above, but fails to commence
or complete the Stage II Minimum Improvements within the time limits
contained in 2 above, the Authority may terminate the Contract as it pertains
to the rights and obligations of the Redeveloper to construct the Stage II and
III Minimum Improvements.
6. If the Redeveloper commences and completes the Stage II Minimum
Improvements within the time limits contained above, but fails to commence
or complete the Stage III Minimum Improvements within the time limits
contained in 3 above, the Authority may terminate the Contract as it pertains
to the rights and obligations of the Redeveloper to construct the Stage III
Minimum Improvements.
Section 4. Phase III Right to Assign. Redeveloper hereby agrees that, unless it has
commenced construction on the Phase III Minimum Improvements, it will transfer and
assign its right title and interest in and to the development of Phase III to any entity
designated and approved by the Authority for that purpose. Until such designation is made,
the Redeveloper may continue to review and act on the redevelopment of Phase III.
Section 5. Phase III Commencement and Completion of Minimum Improvements.
Unless extended, construction of the Phase III Minimum Improvements will commence not
later than December 1, 2013, and be completed not later than December 1, 2015.
•
369234v2 JBD MU195 -15
&01
Section 6. 110 South Right of First Refusal Released. The Redeveloper hereby releases
and terminates the right of first refusal granted to the Redeveloper in Article IX of the •
Contract.
IN WITNESS WHEREOF, the parties have caused this Addendum to the Contract
for Private Redevelopment to be duly executed in each of their names and on their behalf on
or as of the date first above written.
Dated: .2010
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF MOUND, MINNESOTA
By
Mark Hanus
Chair •
By
Kandis M. Hanson
Executive Director
•
369234v2 JBD MU 195-15
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C7
Dated: 9 2010
MOUND HARBOR RENAISSANCE
DEVELOPMENT, LLC,
David Newman
Chief Manager
By
Thomas A. Stokes
• President
is
369234v2 JBD MU195 -15
-11-
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING AMENDED AND RESTATED ADDENDUM TO
CONTRACT FOR PRIVATE DEVELOPMENT
WHEREAS, the Authority and the Redeveloper entered into a Contract for Private
Redevelopment dated March 22, 2005, and subsequently amended by First Amendment to
Contract for Private Redevelopment dated July 5, 2005, and by Addendum to Contract for
Private Development dated April 22, 2008 (collectively, the "Contract "); and
WHEREAS, it is the desire of the parties to enter into this Amended and Restated
Addendum in order to address matters that have occurred since the amendment; and
WHEREAS, the Authority has reviewed the form of document entitled: Amended
and Restated Addendum to Contract for Private Development, (attached hereto as Exhibit
A) has received the recommendations of staff regarding same and is fully informed as to its
contend.
C7
NOW THEREFORE BE IT RESOLVED by the Authority as follows
1. The Amended and Restated Addendum is, in all respects hereby approved. •
2. The Executive Director and Authority Chair are directed to execute the same
and to take all steps necessary to carry out the obligations of the Authority
thereunder.
Adopted by the Housing and Redevelopment Authority in and for the City of Mound,
Minnesota this _ day of June, 2010.
Mark Hanus
Chair
ATTEST:
Bonnie Ritter, Clerk
369284v1 JBD MU195 -15
•
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