Loading...
2012-07H HRA ResolutionMOUND HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION NO. 12 -07H RESOLUTION AUTHORIZING THIRD AMENDED AND RESTATED ADDENDUM TO CONTRACT FOR PRIVATE REDEVELOPMENT 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, and by Amended and Restated Addendum to Contract for Private Development dated June 8, 2011, and by Second Amended and Restated Addendum to Contract for Private Development dated December 15, 2011 (collectively, the "Contract'); and WHEREAS, it is the desire of the parties to enter into this Third Amended and Restated Addendum to Contract for Private Development in order to address matters that have occurred since the amendment; and WHEREAS, the Authority has reviewed the form of document entitled: Third Amended and Restated Addendum to Contract for Private Development, (attached hereto as Exhibit A) and has received the recommendations of Staff regarding same and is fully informed as to its content. NOW, THEREFORE, BE IT RESOLVED by the Authority as follows: The Third Amended and Restated Addendum to Contract for Private Development is in all respects hereby approved. 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 11th day of September 2012. �-Az 4--", Chair Mark Hanus Attest: Vicki Weber, Acting City Clerk Resolution No. 12 -07H Exhibit A THIRD AMENDED AND RESTATED ADDENDUM TO CONTRACT FOR PRIVATE DEVELOPMENT THIS THIRD AMENDED AND RESTATED ADDENDUM is made and entered into as of the _ day of , 2012 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 as of March 22, 2005 which was subsequently amended by: (i) the First Amendment to Contract for Private Redevelopment, dated as of July 5, 2005; (ii) the Addendum to Contract for Private Redevelopment, dated as of April 22, 2008; (iii) the Amended and Restated Addendum to Contract for Private Development, dated as of January 8, 2010; and (iv) the Second Amended and Restated Addendum, dated as of December 15, 2011 (collectively, the "Contract'); and WHEREAS, it is the desire of the parties to enter into this Third Amended and Restated Addendum in order to address matters that have occurred since the last amendment. 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 Third 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. Commencement and Completion of Phase I 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. Section 3. Commencement and Completion of Phase 11 Minimum Improvements. 1. Construction of the Phase II Minimum Improvements is expected to be completed in three stages. The first stage, Stage I, will involve the construction of a structure which may include mixed uses located westerly of Stage II. The second stage, Stage II, may include all or part of Phase II lying east of Stage I. The third stage, Stage III, will include all of Phase II not covered by Stages I and II. 2. Construction of all stages of the Phase II Minimum Improvements must commence not later than May 4, 2015, and be completed not later than 15 months after commencement. 3. If the Redeveloper fails to commence or complete construction of any Stage of the Phase II Minimum Improvements within the time limits contained in paragraph 2 above, the Authority may terminate the Contract as it pertains to the rights and obligations of the Redeveloper to construct the Phase II Minimum Improvements. 4. If the Redeveloper commences and completes the Stage I Minimum Improvements within the time limits contained in paragraph 2 above, but fails to commence or complete the Stage II Minimum Improvements within the time limits contained in paragraph 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 Stage III of the Phase II Minimum Improvements. Section 4. Earlier Termination — Phase II Minimum Improvements. Either party may terminate the Contract as it pertains to the rights and obligations of the Redeveloper to construct the Phase II Minimum Improvements upon any of the following: 1. The City has not given preliminary plat approval to the plating of the parcel on which the Stage I Minimum Improvements will be constructed by October 1, 2014. 2. The parties have not reached agreement, and as necessary, amended the Contract to address such matters as the amount of payment which the Redeveloper will make for the purchase of Stage I lands owned by the HRA or City, and the allocation of tax increment between the Redeveloper and the HRA. 3. The Redeveloper has not obtained final approval of the final plat on or prior to March 1, 2015. 4. Termination by the Authority as described in Section 7. Section 5. Commencement and Completion of Phase III Minimum Improvements. 1. Construction of all stages of the Phase III Minimum Improvements must commence not later than May 4, 2015, and be completed not later than 15 months after commencement. 2. If the Redeveloper fails to commence or complete construction of the Phase III Minimum Improvements within the time limits contained in paragraph 1 above, the Authority may terminate the Contract as it pertains to the rights and obligations of the Redeveloper to construct the Phase III Minimum Improvements. Section 6. Earlier Termination — Phase III Minimum Improvements. Either party may terminate the Contract as it pertains to the rights and obligations of the Redeveloper to construct the Phase III Minimum Improvements upon any of the following: The Redeveloper has not obtained final approval of the final plat on or prior to March 1, 2015. 2. Termination by the Authority as described in Section 7. Section 7. Phase II and Phase III Marketing Efforts Termination of Contract by Authority. The Redeveloper and the Authority acknowledge that further development within the TIF District must be commenced no later than May 4, 2015 in order to receive tax increment assistance. With this in mind, the Redeveloper and the Authority agree to use their best efforts to find one or more secondary developers to complete the Phase If Minimum Improvements and the Phase III Minimum Improvements. If the Redeveloper finds a secondary developer to complete one or more stages of the Phase II Minimum Improvements or the Phase III Minimum Improvements, the Contract will remain in effect with respect to that portion of the Phase II Minimum Improvements and /or the Phase III Minimum Improvements. If the Authority finds a secondary developer to complete one or more stages of the Phase II Minimum Improvements and /or the Phase III Minimum Improvements, the Authority has the option to terminate the Contract with respect to that portion of the Phase II Minimum Improvements or Phase III Minimum Improvements. Section 8. Phase II and Phase III Right to Assign. The Redeveloper hereby agrees that, for each Stage of the Phase 11 Minimum Improvements and the Phase III Minimum Improvements, unless the Redeveloper has commenced construction on such Stage of the Phase II Minimum Improvements and the Phase III Minimum Improvements, it will transfer and assign its right title and interest in and to the development of such Stage of Phase II Minimum Improvements and /or Phase III Minimum Improvements 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 11 and Phase 111. Section 9. Phase III Trident Development. Notwithstanding the provisions of Sections 7 and 8 of this Agreement, the Authority and the Redeveloper will work cooperatively with Trident Development, LLC ( "Trident "), or its assigns, to develop certain Phase III Minimum Improvements consisting of an assisted living facility in the Landgon Lake area (the "Trident Development "). At the present time, it is proposed that a new housing tax increment district be created or other financing mechanisms be utilized to help finance the proposed Trident Development. If such a financing mechanism is approved by the Board of Commissioners of the Authority, the proposed Trident Development will be removed from the purview of the existing Contract. In relation to the Trident Development, the Authority, the Redeveloper and Trident will cooperatively negotiate the terms of a development agreement. The Authority acknowledges that the Redeveloper should be compensated for its efforts to develop the Phase III Minimum Improvements, and specifically for its work with Trident. However, the Authority and the Redeveloper agree that any compensation paid to the Redeveloper in relation to the proposed Trident Development must fit within Trident's pro forma so that the proposed Trident Development remains and continues to be viable. During the development agreement negotiations, the Redeveloper shall discontinue its involvement if such withdrawal will allow the proposed Trident Development to maintain viability. (Remainder of this page intentionally left blank) IN WITNESS WHEREOF, the Redeveloper and the Authority have caused this Third Amended and Restated 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: 2012 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF MOUND, MINNESOTA By Mark Hanus Chair By Kandis M. Hanson Executive Director Dated: 2012 MOUND HARBOR RENAISSANCE DEVELOPMENT,LLC, David Newman Chief Manager [Redeveloper signature page to Third Amended and Restated Addendum to Contract for Private Development]