HRA Resolution 1996-3HRA RESOLUTION 96- 3
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO
RESOLUTION FINDING CERTAIN PROPERTY OCCUPIED
BY A STRUCTURALLY SUBSTANDARD BUILDING AND
AUTHORIZING A PRE - DEMOLITION DEVELOPMENT AGREEMENT
BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO AND BARRY FLUTH
WHEREAS, Barry Fluth (the "Developer ") is the owner of certain property
within the city of Monticello described as follows:
Lots 7 & 8, Block 52, except the southeasterly 16.5 feet of the southwesterly 90
feet of Lot 8, Original Plat addition in the city of Monticello, County of Wright,
Minnesota
(the "Property "); and
WHEREAS, the Property is currently occupied by a structurally substandard
building as defined by Minnesota Statutes, Section 469.174, Subd. 10(b) (the
"Building "), which the Developer intends to demolish; and
WHEREAS, the Developer and the Housing and Redevelopment Authority in
and for the City of Monticello (the "Authority ") desire to enter into a development
agreement prior to the Developer's demolition of the Building; and
WHEREAS, the Developer and the Authority wish to agree upon the type, scope,
and timing of the development of the Property (the "Project ") and the types and
amounts of assistance to be provided by the Authority to the Developer with respect
to the Project; and
WHEREAS, the Developer and the City wish to memorialize their desire to
agree upon the terms and conditions by which the Authority will provide assistance
to the Developer in return for the Developer's undertaking and completing the Project.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Monticello, Minnesota as follows:
1. The Authority finds that the Property is currently occupied by a
structurally substandard building as defined by Minnesota Statutes,
Section 469.174, Subd. 10(b).
2. The Authority intends to include the Property in a redevelopment tax
increment financing district within three years after demolition of the
Building.
Resolution 96-
Page 2
3. Upon filing the request for certification of the Property as part of a
redevelopment tax increment financing district, the Authority will notify
the county auditor that the original tax capacity of the Property must be
adjusted as provided by Minnesota Statutes, Section 469.177,
Subdivision 1(h).
4. The Pre - Demolition Development Agreement attached as Exhibit A is
hereby incorporated herein and approved, and the Chair and the
Executive Director of the Authority are authorized to undertake all
actions necessary to execute the Pre - Demolition Development Negotiation
Agreement on behalf of the Authority.
5. The Executive Director of the Authority is authorized to make any non-
material corrections to the final Pre - Demolition Development Agreement
prior to its execution.
Approved by the Board of Commissioners for the Housing and Redevelopment
Authority in and for the City of Monticello this 6th day of March , 1996.
Dated: � - t — 1�1\ �s
Chai�/
ATTEST:
Executive Director
PRE - DEMOLITION DEVELOPMENT AGREEMENT
THIS AGREEMENT dated this 20th day of March , 1996
by and between the Housing and Redevelopment Authority in and for the City of
Monticello, a public body corporate and politic under the laws of the State of
Minnesota ( the "Authority ") and Barry Fluth ( the "Developer ") :
WITNESSETH :
WHEREAS, the Authority desires to promote development of the property
described as:
Lots 7 & 8, Block 52, except the southeasterly 16.5 feet of the
southwesterly 90 feet of Lot 8, original plat addition in the City of
Monticello, County of Wright, Minnesota
( the "Property ") ; and
WHEREAS, the Property is currently occupied by a structurally substandard
building (the "Building ") as defined by Minnesota Statutes, section 469.174, subd.
10(b); and
WHEREAS, the Developer may develop the Property (the "Project ") ; and
WHEREAS, the Authority desires to assist the Developer in development of the
Property, provided that a satisfactory agreement can be reached between the parties
to establish the type and level of public assistance to be provided by the Authority
to the Developer with respect to development of the Property.
NOW, THEREFORE, in consideration of the mutual covenants of the parties
hereto, IT IS AGREED between the parties as follows:
1. Pursuant to this Agreement, the Developer will demolish the Building
and remove any debris in accordance with all applicable laws, ordinances, rules, and
regulations.
2. Contingent upon successful negotiation of:
(a) Terms and conditions concerning the type, scope, and timing of
construction of the Project by the Developer and of any public improvements
to be constructed in connection with the Project;
(b) A statement of the nature and amount of any security to be
furnished to the Authority to protect its financial investment in the Project
before and after completion of the Project;
(c) Types and amounts of assistance to be provided by the Authority
to the Developer; and
(d) Such other terms and conditions as may be agreed upon by the
parties,
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the Authority will provide such assistance as has been agreed upon by the parties
and the Developer will undertake and complete construction of the Project, all as set
forth in a definite contract to be entered into by the parties.
3. The parties shall use their best efforts to successfully negotiate the
terms and conditions described in paragraph 2; provided, however, that nothing in
this Agreement shall prevent the Developer from selling or negotiating to sell the
Property to any other person or entity. If negotiations between the parties are not
successfully completed within 45 days of the execution of this Agreement, the
obligations of all parties to one another shall terminate and neither shall incur any
obligation to any other, unless both parties agree in writing to extend the term of
this Agreement.
4. During the term of this Agreement, the Developer shall provide to the
Authority the information the Authority reasonably deems necessary to evaluate
whether and how to provide the assistance contemplated by this Agreement. Such
information may include, without limitation
(b) a preliminary design proposal and a cost analysis projection for
the design and construction of the Project. The proposal shall show the
location, size, and nature of the Project, including floor plans, outline
specifications, and other graphic or written explanations of the Project, shall
be accompanied by a time schedule for all phases of development, and shall
show and be compatible with any public improvements to be constructed
adjacent to or as part of the Project;
(c) other preliminary economic feasibility studies, income and
expense projections, and economic information;
(c) a Project financing plan that shows the Developer's ability to
finance the Project and that the Authority's investment will be protected;
(d) documentation identifying the legal entity constituting the
Developer, the identity of the Developer's principal owners, and the legal
relationship of such principal owners; and
(e) information or financing statements that the Authority may
reasonably request concerning each person or entity comprising the Developer
and evidencing the financial responsibility of such person or entity and the
nature and extent of such person's or entity's financial interest in the
Developer and the Project.
5. It is expressly understood that the Authority's provision of assistance
and the Developer's undertaking and completion of the Project is subject to the
determination by both parties, in light of all the facts and circumstances, that such
actions are in the best interest of the parties.
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MN190 -53 2
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
and delivered as of the day and year first above written.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF MONTICELLO
By•
is 'r
By: (7�)
Its Executive Direc r
STATE OF MINNESOTA )
)SS.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this 20th day of
March , 1996, by Al Larson and Olive Koropchak, the Chair and
Executive Director, respectively, of the Housing and Redevelopment Authority in
and for the City of Monticello, on behalf of the Authority.
r Not ry Public,
MARLENE J, HELLMAN
t" "AR's PUBLIC - RAI MPS07A
I C-0m.a. Jan. 31, 2000
DJG100970
MN190 -53 3
BARRY FLUTH
r
Barry Fluth
STATE OF MINNESOTA )
)SS.
COUNTY OF WRIGHT )
The foregoing instrument was acknowledged before me this 20th day of
March 1996, by Barry Fluth, an individual.
G
4Noy Pub
This Instrument Was Drafted By:
KENNEDY & GRAVEN, CHARTERED
470 Pillsbury Center
Minneapolis, Minnesota 55402
612 -337 -9300
DJG100970
MN190 -53
4
MARLENE J- HELLMAN
Nt�T.R'�JEILIC - i3AiNIVESQTA
AM AAAARI
'�•.,�. My GDS ,a =..P, Jan. 31, 2000