HRA Agenda 06-17-2002
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SPECIAL MEETING AGENDA
MONTICELLO HOUSING AND REDEVI'~LOPMENT AUTHORITY
Monday, June t 7,2002 - 6:00 p.m.
505 Walnut Street - Boom Room
Commissioners:
Chair Brad Harger, Vice Chair Steve Andrews, Oarrin Lahr, Dan Frie, and
Bill Fair.
Council Liaison:
Brian StUlnpf.
Staff: Rick Wolfsteller, Ollie Koropchak, and Lori Kraemer.
Call to Order.
Consideration to approve the June 5, 2002 liRA minutes.
Consideration of adding or removing items from the agenda.
Consent Agenda.
Public Hearing - Adopt Resolution for the Disposition of Raw Lands located in the
northerly one-half or Block 54.
6. Other Business.
7. Adjournment.
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HRA Agenda - 6/17/02
5.
Public Hearin2: - Adopt a resolution for the Disposition of Raw Lands located in the
northerly one-half of Block 54.
A. Reference and backeround:
PUBLIC HEARING
In order tl1r the HRA to transfer title to Hans Hagen Homes, Inc.; Minnesota Statutory,
469.065, Sale of Property states: The authority shall hold a hearing on the sale. Said
notice appeared in the June 6, 2002, edition of the Montieello Times. The HRA Chair is
requested to open the public hearing allowing a taxpayer to testify for or against the sale.
Having heard testimony fiJr or against the sale, thcHRA Chair should close the public
hearing.
ADOPTION Or: RESOLUTION
As you recall, thc liRA began ncgotiations to acquire the four parcels located in the
northerly one-half of Block 54 in 1999/2000. Thc arca was identified in the Downtown
Monticello Revitalization Plan as an area for redevelopment. The proposed 10
townhouse units for construction are consistent with the Monticcllo Comprehensive Plan.
The Contract for Privatc Dcvclopll1Cnt among thc liRA, the City, and Hans Hagen
Homes, Inc. which defines the terms and conditions for conveyance and redevelopment
of thc sitc has bccn executed. The Purchase Price to be paid to the Authority by the
Dcvcloper is $JOO,OOO at closing. "rhc HRA shall preparc thc sitc according to thc
"Grading Plan". Thc Contract and Asscssment Agrccmcnt will be rccorded at the
County. The minimum markct valuc ofthc 10 townhouscs is $1,900,000. The site plan
and plat arc in proccss. Thc spccs and bids for the preparation of a finished pad site
("Grading Plan") were prepared by WSB. Inc. the city engineer consultant, and will be
awardcd by the I IRA on June 28.2002. at 6:00 p.m. WSB, Inc. will also prepare the
spccs and bids for the replacemcnt of the Front Street, and thc watcr/sewcr lines with
construction to commcnce July 29, 2002. The Contract states construction of the
townhouses to commence by July 1,2002 (to be amended to July 22. 2002) for
completion July 1,2003. However. the units will be fully assessed as of January 2.
2003.
J lans Ilagen Homes. Inc. has requested conveyance of the land prior to the HRA's
obligation to complete the site as a rinished pad site ("Grading Plan") in ordcr to bcgin
marketing and selling the townhouses. Closing date scheduled for June 19.
Thc liRA is rcqucsted to considcr adoption ofthc attachcd resolution which defines the
public purpose for disposition of the said raw lands.
HRA A~enda - 6/17/02
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H. Alternative Aetion:
1. A motion adopting the resolution by the lIRA authorizing the disposition of raw
lands as descri bed.............
2. A motion to deny adoption of the resolution by the HRA authorizing the
disposition of raw lands as described ....................
3. A motion to table any action.
C. Recommendation:
Since there will not be a quorum at the June 17, HRA meeting, the Chair is asked to
announce the HRA public hearing and meeting will convcne June 18,2002,6:00 p.m.,
City Hall, Academy Room. 505 Walnut Street Monticello, MN. The Chair may wish to
publicly announcc the selling price of the lands.
D. Supportim! Data:
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Copy of public hearing notice, resolution for adoption, and excerpts from the Contract for
Private Development.
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your Homerown lVewSpapt:#
· Area Public
Notices
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MINNESOTA SECRETARY OF STATE
CERTIFICATE OF ASSUMED NAME
Minnesota Statutes Chapter 333
The filing of an assumed name does not provide a user with exclusive rights to
that name. The filing is required for consumer protection in order to enable con.
sumers to be able to identify the true owner of a business.
1. State the exact assumed name under which the business is or will be con-
ducted (one busil)ess name per application): One Touch Turnovers.
2. State the address of the principal place of business. A complete street address
or rural route and rural route box number is required; the address cannot be a P.O.
Box: 2700 Meadow Lane, Monticello, MN 55362.
3. List the name and complete street address of all persons conducting business
under the above Assumed Name. Attach additional sheet(s) if necessary. If the
business owner is a corporation, provide the legal corporate name and registered
office address of the corporation: Paulette (Polly) Gravelle, 2700 Meadow Lane,
Monticello, MN 55362.
4. I certify that I am authorized to sign this certificate and I further certify that I
understand that by signing this certificate, I am subject to the penalties of perjury
as set forth in Minnesota Statutes section 609.48 as if I had signed this certificate
under oath:
Date: 03-23-02.
-Paulette S. Gravelle-Owner
(June 6, 13, 2002)
Notice of Public Hearing
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO-COUNTY OF WRIGHT
STATE OF MINNESOTA
Disposition of Raw Lands
NOTICE IS HEREBY GIVEN that the Housing and Redevelopment Authority
(the "Authority") of the City of Monticello, County of Wright, State of Minnesota, will
hold.a public hearin~ Monday, June 17, 2002, at approximately 6 p.m., at the
Monticello Community Center, Boom Room, 505 Walnut Street, Monticello,
Minnesota, relating to the proposed disposition of raw lands located within the
Redevelopment Plan for Central Monticello Redevelopment Project No.1 and the
TIF Plan for TIF District No. 1-22.
The raw lands proposed for disposition are described as follows:
. Description'
Lot 6 and the Southeasterly 33.00 feet of Lot 7, as measured at right angles to
the Southeasterly line thereof, Block 54, Townsite of Monticello, Wright County,
Minnesota.
Lot 7, Block 54, Townsite of Monticello except therefrom the Easterly 33 feet
thereof, and Lot 8, in Block. 54, of the Village of Monticello, Wright County,
Minnesota
That part of Lots 9 and 10, Block 54, in the City of Monticello, according to plat
by John O. Haven on file and of record in the office of the County Recorder, in and
for the County of Wright, State of Minnesota, described as follows: Commence at
t~e Northwesterly corner of Lot 10 in said Block 54; thence running in a Southerly
direction along the Westerly line of said Lot 10, 80 feet; thence in an Easterly direc-
tion parallel to the Northerly line of said Lots 9 and 10, 132 feet to the Easterly line
of said Lot 9; thence in a Northerly direction along the Easterly line of said Lot 9,
80 feet; thence in a Westerly direction along the Northerly line of said Lots 9 and
10,132 feet to the place of beginning, situated in Wright County, Minnesota.
Lots 9 and 10, Block 54, except the North 80 feet, Monticello, according to the
plat and of record in the Office of the County Recorder, in and for the County of
Wright, State of Minnesota.
-Ollie Koropchak, HAA Executive Director
(June 6, 2002)
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ORDINANCE AMENDMENT NO. 378
City of Monticello
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1.J,Ulll..L""''-'.U.V, .,&_- a_" ----J,
town.
"People in the community rallied
around us," he said. "People we
never knew."
He was touched by his neighbors'
kindnesses at the time, and is happy
to report that Marie eventually made
a complete recovery.
In 1974, Flicker's moved to the
former home of Klimmek's Home
Furnishings, which was going out of
business. The building was divided
into two stores sharing a common
wall, and Flicker leased half the
space to Larsen's Carpet.
Flicker started the appliance side
of his business that year, picking up
dealerships for Frigidaire and Zenith,
when Marty Kjellberg's nearby
appliance store closed its doors.
In 1977, Fullerton Lumber-which
took up the block where the current
Flicker's stands-burned to the
ground. Coincidentally, Flicker, a
member of Monticello's Fire Depart~
ment, was one of the firefighters to
answer that call.
'The flames were so hot our tail-
lights were melting," he said. "I
never thought I'd have a building on
the site."
One warehouse remained standing
after the fire, and Flicker began renting
it in 1978. A year later, jle bought the
lot and built his current store, adding
the southern half- which became
home to a dental office and a waterbed
store-a year later. Those spaces are
now occupied by Select Eyecare and
Monticello Floral.
Situated in the same location for
23 years, Flicker's has continued to
thrive. Originally a home-based side-
line repair service, the company now
provides a wide array of appliances,
from ranges to refrigerators to central
Ul~ 111\;..i !-'V;},,,:)U..J'H.l.U...... ~~ --
day-to-day grind.
. "After 30 years of WI
retail side of the business, .
get tired out," he said. "W
about the hours, the nights
ends I've put in, I guess
back away and relax. As
ual owner, you're tied up,
some real good help-s
employees-but you still
there to oversee the place.;
The first step toward
was to replace Marie, wl1
doing the Flicker's boo
years. Marie moved on i
the Chamber part time.
"A couple of years ag
a bookkeeper," he sa'
wouldn't have to be fIg
way for both of us to get
at the same time."
As Flicker continued
the notion of retirement, i
if his business was to sUI.
some restructuring' would
'There's a tendency ft
owners to control, conti
he said, "to micromanag'
different hats every da
very first employee I h
stood that it takes mal
make it work. My tend
the help became second
to stand back, so that ti
in Flicker's and Brand ~
had to be in the employ,
then would the busmess
Gradually, he force
change. He knew he hf
employees "the respo
authority and the acco
handle their own areas I
He also began lo q
good candidate for his r
Their two sons ha.
up to pursue interests
NOTICE
Notice is hereby given that the Monticello Planning Commissir
a special meeting regarding the Monticello Land Use Plan. Thi'
held Wednesday, June 12, 2002 at 7 pm in the Mississippi Room
Community Center.
Since there may be a quorum of the Plannin2 Commissir
tl.!j'l'~21:2P-~~~t ~~~_~~~~o/-h..~'?En2.'!'.i~E.~,!e"?e.~'!r:!.t ~._ u.!':!~r:!'Y..J~~
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HRA RESOLUTION NO.
A Rl~SOLUTION BY THE HOIJSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF MONTICELLO, MINNESOTA,
AlJTHORIZING THE DISPOSITION OF RAW LANDS.
WI IEREAS, the Housing and Redevelopment Authority in and for the City of Monticello (the
"Authority"), the City of Monticello (the "City"), and I lans llagen Homes, Inc. (the
"Developer") agree to the terms, conditions, and covenants of the Contract for Private
Development by and among Hans Hagen Homes, Inc. and Ilousing and Redevelopment
Authority in and for the City of Monticello and the City of Monticello, Minnesota, dated April
22,2002; and
WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello
declares the said raw lands for disposition lie with the Modified Redevelopment Plan Itw Central
Monticello Redevelopment Project No.1; and
WI IEREAS, the Housing and Redevelopment Authority in and for the City of Monticello
declares the said raw lands for disposition lie with the Tax Increment Plan for Tax Increment
Finance District No. 1-22; and
WHEREAS. the Housing and Redevelopment Authority in and for the City of Monticello owns
and shall prepare the said raw lands according to the grading plan attached to the Contract for
Private Development; and
WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello
declares proper notice appeared in the Monticello Times relating to the public hearing held on
June 17,2002, for the disposition of the said raw lands; and
WI IEREAS, the I lousing and Redevelopment Authority convened the public hearing of June 17_
2002, on June 18,2002, for the disposition of the said raw lands; and
WHEREAS, the Housing and Redevelopment Authority in and for the City of Monticello and
Hans Hagen Homes, Inc. agree the developer shall construct upon the said raw lands 10 owner-
occupied townhouses, each with a minimum square footage of at least 1,600 square feet by July
1.2003.
WHEREAS, the Housing and Redevelopment Authority in and for the City of Montie clio and
Hans I lagen Homes agree the minimum market value to be at least $1,900,000 for the sum total
of the 10 townhouses as of January 1,2003; and
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HRA Resolution No.
continued
WI IEREAS, the Housing and Redevelopment Authority in and t()r the City of Monticello and
Ilans Hagen Homes, Inc. agree to a purchase price of Three Hundred Thousand Dollars and No
Cents ($300,000) for the disposition of the raw lands described as:
Lot 6 and the Southeasterly 33.00 feet of Lot 7, as measured at right angles to the
Southeasterly line thcreof, Block 54, Townsite of Monticello, Wright County, Minnesota.
Lot 7, Block 54, Townsite of Monticello except therefrom the Easterly 33 feet thereot~ and
Lot 8. in Block 54, of the Village of Monticello, Wright County, Minnesota.
That part of L,ots 9 and 10, Block 54, in the City of Monticello, according to plat by John O.
Haven on file and of record in the office of the County Recordcr, in and for the County of
Wright, State of Minnesota, described as follows: Commence at the Northwesterly corner of Lot
lOin said Block 54; thence running in an Southerly direction along the Westerly line of said Lot
10, 80 fect thcnce in an Easterly direction parallel to the Northerly line of said Lots 9 and 10,
132 feet to the Easterly line of said I,ot 9; thence in a Northerly direction along the Easterly line
of said Lot 9, 80 feet thence in a Westerly direction along the Northerly line of said Lots 9 and
10.132 feet to thc place of beginning, situated in Wright County, Minnesota.
Lots 9 and 10. Block 54, except the North 80 feel. Monticello, according to thc plat and of
rccord in the Office of the County Recorder, in and 1'01' the County of Wright. State of Minnesota.
NOW. THEREFORE. BE IT RESOLVED by the governing body of the Housing and
Redevelopment ^uthority in and for the City of Monticcllo finds the redevelopment to be in the
public interest because:
1. It provides maximum opportunity f(}[ redevelopmcnt by private enterprise,
consistent with the objectives of the Modilied Redevelopment Plan f()r the Central
Monticello Redevelopment Project No. I as a whole.
2. It will encourage rcdevelopment of an arca in a manner that will increase the
financial base of the City of Monticello and improve the source of public revenue.
3. It will provide adequate street, utilities, and other public improvements and
I~lcilities to enhance the area fl.)]' both existing and new developmcnt.
4. It will eliminate blighting influences which impede the potential development of
an area.
5.
It will provide redevelopment sites of such size and character to assure
development of the area.
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lIRA Resolution No.
continued
6. It allows the acquisition and removal of buildings that arc structurally substandard
and/or buildings that arc economically or functionally obsolete.
7. It will accomplish the optimum quality of development for the project through site
planning and landscape architecture, the treatment of open space, building design,
the use of materials, scale, appropriateness, and functional utility.
8. It is consistent with the City of Monticello Comprehensive Plan.
The I lousing and Redevelopment Authority in and fl.)!' the City of Monticello, Minnesota, docs
hereby authorize the disposition of described raw lands to Hans Hagen Homes, Inc. subject to
compliance of the Contract for Private Development dated April 22, 2002.
Adopted by the Monticello Housing and Redevelopment Authority in and J()r the City of
Monticello, Minnesota, this _~ day of June, 2002.
I-:l.RA Chairperson
ATTEST:
HRA Executive Director
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ARTICLE III
Acquisition of Property: Fin;tl1ci.lIAssistancc
Section 3.1. Acquisition and Convevance of the Development Propertv. As of the date of
this Agreement. the Authority o\vns the Devdopment Property. The Authority \\iIL subject to all
the terms and conditions of this Agreement. cOI1\'ey the Development Property to the Developer for
$300.000.
Section 3.2. C ondi tions of Acquisition and C onve\'ance: Purchase Price. (a) The Authority
shall convey title to and possession of the Development Property to the Developer by a deed
substantial I)- in the form of the deed attached as Exhibit E to this Agreement (the nDeedn). The
Authority's obligation to acquire :;ll1d convey the Development Property is subject to satisfaction of
the following terms and conditions:
(i) the Dewloper hewing submitted to the Authority evidence of financing as
required under Sl:'ction 7.1:
(ii) the Developl:'r having submitted and the Authority ha\-ing approved
Construction Plans for the ;\-linimum Improvements:
(iii) thl:' Developer- having reviewed and approved title to the Development
Property as set forth in Section 3.-+:
(i\) the Developer ha\'ing executed and delivered to the Authority the
Assessment Agreement:
(\) the De\-eloper not being othenvise in default under this Agreement:
(vi) the Authority having complied \\"ith all statutory preconditions and hearings
required for the sale of the Development Property and the execution of this Agreement: and
(viii) the Developer having paid to the Authority $300.000.
The closing on conveyance of the Development Property from the Authority to the Developer shall
be on such date as the Dewloper and the Authority shall agree in \\:riting_ but in no case later than
2002 (the -'Closing Date'").
(b) The purchase price to be paid to the Authority by the De\"eloper in exchange for the
conveyance of the Development Property shall be $300.000 to be paid by the Developer to the
Authority at closing.
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Section
Recordin!2_
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Place of De\elopll1(,llt Propel'[\' Docunll'nt E:\ecution. Deli\l:'n', and
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(a) L'nJess othen\ise ll1utuJI]y agrl:'ed by the Authority and the De\elt)per. the.' ewcution
and deli\'ery of all de~ds. dllCUll1ellts. and thl:' pJyment of any purch~lse price pen;1ining to the
Development Property shall be made at the offices of the Authority,
(b) The Deed shall be in recordable form and shall be promptly recorded in the proper
office for the recordation of deeds and other instruments pertaining to the Development Property,
(c) The Developer shall pay on the Closing Date:
(i) The Developer' s arrome:' s fees:
(ii) Recording fees or taxes for the Deed:
(iii) All costs and expenses of the related to the title insurance described 111
Section 3,-1-: and
(i\-) Real estate taxes due and payable in the year of closing prorated tl'om the
Closing Date to the end on the year of closing.
(d)
The Authority shall pay on the Closing Date:
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(i) Rl:'cording fees or taxc;'S relating to mortgage or lien satisfaction:
(ii) Real estate taxes due and payable in the year of closing prorated to the
Closing Date:
(iii) All assessments of record and all pending assessments. except any taxes to
be levied according to the terms of the Assessment Agreement. such taxes to remain the sole
responsibility of the De\-eloper and its successors and assigns,
Section 3.4. Title. As Soon as reasonably practical after the date of this Agreement. the
Authority shall obtain and pro\'ide Developer with a commitment for the issuance of a policy of title
insurance for the Development Property. The De\'eloper shall have ten (10) days from the date of
its receipt of such commitment to review the state of title to the Development Property and to
provide the Authority \\'ith a list ofwrinen objections to such title. Upon receipt of the Developer's
list of written objections. the Authority shall proceed in good faith and with all due diligence to
attempt to cure the objections made by the De\'eloper. Nor earlier than eleven days following the
date the Authority shall haw received a commitment for the issuance of a policy of title insurance
for the De\elopment Property or. in the e\ent the Developer shall haw pro\'ided the Authority \\-ith
a list of \vritten objections. \\ithin tc;'n (10) days after rhe date th~lt all such objections ha\e been
cured to the reasonable satisfaction of the De\-eloper. the Authority and Developer shedl proceed
with the acquisition :1nd comeyclIlce of tlk De\'elopment Property plirSU:;:lIlt to Sl:'ctions':;,] and ':;,.:2 .
of this Agreement, In the e\ent th:;:lt the Authority has failed to Clire objections \\ ithin sixty (60)
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days afkr its re.c.:il't cd' the D~\~lup~r's list of such oh.iectil1l1S, eith..:r the De\~lop~r or the ,-\uthl)rity
m.IY b; th~ !;i\ in!; of \\ ritlcn nutic~ to Ih\.' oth..:r. krmin~ltc: this A;;re~ll1..:nL UPl)1l the- rec~ipt of
\\hich this .-\;;rCell1Cllt sh~t!l he null and \ oid and ncithl'r party shJl1 h~1\ e- ~1Il; li.lhility herl;.'undcr.
The ..\ulhurilY sh:t!l h~l\ e- no ohli;;<1tion to wk~ <1ny Jction to cl~Jr defects in the- title to the
Dc\ \.'lupll1\..'nt Prl)peny. ,it:1cr th<1n thc gli'id bith dTl)rtS lkscribd :\b()\c,
Section 3_5, Soil Conditions. The Authority shall. prior to closing. gr<1de the Dewlopment
Property m the sole cost of the .-\uthority according to the grading plan attached here to as Exhibit F
(the "Grading Plan"), The Authority shall pro\'ide the Developerwith a soils engineer's report that
verifies the condition of the soil shall permit the Developer to construct all ten Townhouses and
install dri\e\\'ays. alleys. and side\\-alks \vithout any cost to the Developer to correct soil conditions
on the Development Property. The Authority hereby represents and warrants to the De\eloper that
the Authority h3s neith~r caused. permitted. or has any knowledge of any storage. disposal. or
dumping of hazardous subswnces on the De\'elopment Property in violation of federal or State la",-
and the Authority funher agrees to indemnify the De\'eloper. and its. successors or assigns. including
all persons hereafter acquiring <1n o\\nership interest in any pan of the De\'elopment Propel1y. from
and against <1ny and all liability. loss. costs. damage and e:\pense resulting from or due to the release
or thn:~lten~d rck<1se of ho.zardous subswnces.luzanJl1lls \\-astes. pollLltunts or cont<1minanrs \\hich
\\ere or an: Jlle-ged to hJ.\e been deposited. stor-:d. dispos~d of. or placed on the Dewlopment
Property by any pe-rson during the period in \\hich the Authority had title to the De'\.elopment
Property, This indemnitlc3tionshall be binding upon heirs. personal represenratiws.successorsand
assigns of the .-\uthority,
Section 3,6_ P<1\'ment of Administrative Costs, The Den~lop,:r agrees that it will p<1) upon
d~mJncl by the ALlthority. Administrative Costs (as hereafter defined). For the purposes of this
Agreement. th~ tC'rm '..-\dministrati\e Costs" means out-of-pocket costs incuned by the Authority
and attributable to or incurred in connection with the negotiation and preparation of this Agreement
Jnd othe-r documents and agreements in connection with the de\'elopment contemplated hereunder.
Out-of-pocket Administrative Costs shall be evidenced by in\'oices. statements. or other reasonable
\\Titkn e\'idence of the costs incurred by the Authority. As of the date of this Agreement. the
De-\(~Ioper has Je-pl)sited 55.000 \\ ith the Authority to be- applied to\\ard Administrati\'eCosts, The
amount by \\hich this deposit e:\ceeds the Authority's actual Administratiw Costs. if any. shall.
upon demand by the De\eloper. be returned to the De\eloper. but no earlier than the- date on which
the De\'eloper receiws a C enificate of Completion pursuant to Section 4,4 of this Agreement.
Section 3,7. Construction of Improvements. (a) In order to make dewlopment of the
!\ linimum Impro\ements economically feasible. the City and the Authority \vill complete. at the
Authority's sl)le cost a.nd e:\pense. the following impro\'ements: (i) a project to upgrade. replace.
and othe-l"\\ise impro\e the street. sewer. and water infrastructure serving the Development Property:
(i i) demolition of an e'(isting house and any other existing structures on the Carlson Propel1Y. such
de-nwlitil)n to ,Kcur 11l) Inter than .-\ugust 31. 2002. and seeding and sodding of the Carlson Property
by 11l) bkr than September 30. 2002. subject in bl)th cases to receipt by the Authority of all
neceSSJr; apl'I'O\'als from the State Department of !\Jtural ReSl)UrCeS and J.ny other agency with
proper.i urisd i cti on: (i i i ) c(1nstructilin 0 f 10 ne\\ \\ater and st'\\er stubs des i g ned to seJ"\'e the Parcels:
JnJ (i\) c\.n-;tI"llctil)n (11' lme pad on each of the I 0 P~lrcek such pads designed to permit
Cl)nstructil)n llf ~\ Tl)\\ nhous~ then:on and constrULtil.nllf such pads to be cl)mplded no later than
I) ,h. I-':II-,'\,,"'\,~
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(0) lhe .-\uthllrit; and the City agrec \\ith each lither. and fi.1r the h~ndit of no other
person. including but not lil11it~d to the [)e\t.'lop~r. and sub;l'ct to the- ri!;ht of the City and the
Authorit; [() llthC:'r\\ise pay for Jny such items out of~lIlY funds Ia\\fully a\Jibble for such purposes.
that the items describC'd in Section,), 7(a) shall be paid for as 1(1110\\'5:
(i) T\\ehe and one-half percent of the street. se\Ver. and water infrastructure
rep!.:lcement costs shall be paid for by the Authority with Tax Increment. or with tax
increment generated by other property within the TI F District to the extent that such tax
increment is not otherwise committed:
(i i) T we h'e and one-hal f percent of the street. sewer. and \\ater in frClstructure
r~p/Qcement COSts shall b~ assessed by the Ci ty against the Carlson Propel1y:
(ii i) Se\'enty-li \'e percent of the street. sewer. and Wo.ter i nt'i'astructure
replacement costs shall be paid for by the City Out of its general funds or out of any other
City \\hich m:.lY b~ Ia\\fully used for this purpose:
(i\) Demolition of existing structures on the Carlson Property. site cleClning of
the;> PJ.rcels. construction of the 10 water and se\\er stubs. construction of the 1 0 Townhouse
pads. and grading the bClbnce of the Dewlopment PrOperty according to th~ Grading Plan.
"I II 011 be paid b, the _-\ utho ri ty with T a, 1 nc re men l. 0 r wi th [0' i nc remen t g ene'-uted b, .
other prop~rty \\'ithin the TIF District to the extent that such tax increment is not othel"\\'ise
committed: and
(v) Twenty-four thousand six hundred dollars ($14.600) of sewer and water
hook-up and trail fees \\ilJ be paid by the Authority \\'ith Tax Increment. or with tax
incre;>mem generated by other property within the TI F District to the extent that such tax
incr~ment is not othen\'ise committed. with any remo.ining such fees that would otherwise
be due forgiwn by the City.
(c) The City and th~ Authority further agree that the City slwII reimburse the A.uthority
for $35.000 of the $78.000 appraised value of the land ponion of the Carlson Property. such
reimbursement to be made out of unrestricted City funds and to be paid \\'ithin 10 days of the date of
this Agreement. with the Authority paying the remaining $-1-3.000 of such purchase price out of
unrestricted Authority funds.
Section 3.8, Business Subsid\' AQreement. The Business Subsidy Act does not apply to this
Agreement becCluse the assistance being pro\'ided hereunder is to promote housing opportunities
within the Cit\,
Sectillll 3,9, L'se ofTo.\ Increment. E:\ct:'pt o.s set f()rth h~rein. the ,-\uthorit\ "hall hZl\t' no
Obligation to the Dewloper \\ith reg::lrd to its use of Ti..1\ lncrell1~l1l :md may use Tax Increment for
any Ia\\'ful purpos~s. \\hether s<."t tl)rth herein or oth~'I"\\'is(',
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ARTICLE 1\'
Construction of .\Iinimulll Impr'O\ ements
Sectiun-L]. Construction of Impr(n'emenrs, The Dc\clopcr agrees thJt it \\ill construct the
!\linilllulll Illlpro\'emems on the Dewlopment Prnpcny in iKCOrdJnc~ \\ith the apI)l'O\ed
Construction PlJ.ns .Jnd at aJltillles during the term or this Agreement. \\ill opt..'rJte and maintain.
presel"\e and keep the \1 i ni m um I mpro\ements or ca use suc h im prO\'cl1lc:-nts to be Illai nt::lined.
presel"\ed ,:lIld kept \\ith the appurtenances ~lIld e\ery part and parcel thereoL in good repair and
condition during the term of o\\nership by the De\eloper. The Authority shall IlL"1t kl\'e any
obligatiunto operme or ll1J.intain the !\.linimum Il11pro\ements,
Section -t.':, Construction Plans. (a) Before commencement III construction of the
rvlinill1ul11 Impro\Cments. the De\-eloper shall suhmit to the Authority Cl)nstruction Plans, The
Construction Plans shall prO\ide for the construction o1'the !'vlinil11umlmprl)\emt..'ntsand shall be in
conti.)rll1ity \\ith the Rede\elopll1ent Plan, this Agreement. and all applicable Sl~lte J.nd local b\\s
and regulalions, The Authority \\ill apprO\e the Construction Pbns in \\riting if: (i) the
Construction Plans conti.)f"Jll 10 the terms Jnd conditions of this .-\gr~el11ent: (ii) thc Construction
Pions conform tl) thc goals ::lnd objecti\es or the Rede\clopmcnt Plan: (iii) th\,., Construction Plans
conforll1to ~dl applicable 1'edt..'ral. stJ.te and Joc.1/laws. ordinances. rules and regubtions: (i\') the
Construction Plans J.re udequate to prO\'ide for construction of the \linimul1lllllpro\l;'ments: (\) the
Construction Plans do not prO\ide for expenditures in excess of the funds a\ailahk tll Ihe De\'eloper
ti'om all sources tllr construction of the Minimum 1111prlAements: Jnd (\-i) no E\l;'nt of DefaulT has
occurred. Appro\almJY be hased upon a re\-ie\\ by the City's Building Onicial of the Construction
Plans. \io :lppro\'al by th~ Authority shall relie\e the Dewloper of the ohligation to comply \\'ith
the terms of this Agreement or of the Redevelopment Plan. applicable federal. state J.nd local la\vs.
ordinances. rules Jnd regulations. or to construct the J\.linimum Impro\ements in ilccordance
there\\ith. :":0 appro\:ll by the Authority shull constitute a \\ai\er of an E \ent of Debult. If
appnnal of the Construction Plans is requested by the Dcvelop..r in nTiting :It the time of
submissil1n. such C unstruction Plans shall be deemed appro\ed unless rejected in \\riting by the
Authority. in \\hok or in pUrl. Such rejections shall set forth in detail the reJ.sons therefore. and
shall he made \\ithin ] 0 days Jtier the date of their receipt by the A.uthority. If the .-\uthority rejects
any Construction Plans in whole or in part. the Oe\eloper shall suhmit new or corrected
Construction Plans \\ithin lO d.1Ys after \\ritten notitication to the De\eloper of the rejection. The
prO\isil1I1s of this Section relating to approval. rejection and resubmission l)f corrected Construction
Plans shall continue to apply until the Constructil)n Plans ha\e been appro\ed hy the Authority.
The AlIthl)rity's apprli\al shall not be unreasonably withheld. Said apprO\'al shall constitute a
conclusi\c' Jdermination that the Construction Plans (and the Minimum Impro\'ements constructed
in accordance \\ith said plans) comply to the Authority's satisfaction nith the pro\'isions of this
Agreement re/ilting therelO_
(b) If the Dt.?\eloperdesires 10 make' an:- \l:1krial change' inth.: C(\nstruction Plans after
their appnnuJ by the Authority. other than ortiol1s normally offert.?d to hy the Dewloper to
pllrch:lsers Uf;1 tln\1111l1use \\ith resf)ect t() tht.? intL'rior of :1Il:- To\\nholl:;<.'. \\ hil'h :;lIch ul'tinl1s can ht.'
orrel't..'d and iI111,J".'n)enlc'J \\ itlwut regard l() this S,:cti()n -+,:;( b l. the' D\,.,\ \..'1 ()p<.'r sh~dl suhmit the
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proposed chdn!;\:' w the A.Lltlwrity t"or its dpprO\al. It" the Cllnstruclil1l1 Pbns, as mlxlitiL'd by the
~lrl)posed ch~lI1!;e, cl1nt"l1l'mtl1 the rL'l]uirements ll( this Section ..t_:' l1j" this-\o;rcenk'nt \\ ith rL'spL'ct to
such prC\il1Llsl; al'l'I'l)\eJ Clllbtrudic1l1 PLtns. the: ,-\Llthurity shall appI'l1\ e the pruposed ch~lnge: and
notiry the De\ ell1per in \\Titing L1( its appn1\-o.l. Such change in the: Cl1nstruction Plans sh.JiI. in any
c\ent. be: J<.::cll1ed ~lppro\ed b; the _-\uthority L1nless r\;'j\;'cI(;',L in \\hI11e: L)r in part. by \\riuenlwtice
by the Authurity to the De\eloper. setting forth in detail the rensons therefor. Such reje:ctil1n sho.ll
be made \\ithin {<;?n ( ] 0) dnys ::Jttcr recciptllfthe notice of such ch:ll1ge. The ,-\uthority' s appro\'a! of
any such chnnge in the Construction Plans \\ill not be unreasonably \\'ithheld.
Section ..t.3, Commencement and Completion of Construction. Subject to Unavoidable
Delays. the De\eloper shall commence construction of the l'vlinimum ImprO\ements by the bter of
July I. 200:' or 10 days follo\\ing the Closing Date. Subject to l"na\oidable Debys. the De\eloper
shall complete the constructiunof\!inimum Impron:"mentsby July 1.2003. ,-\11 \\ork \\ith respect
to the i\linimum ImprO\ements to be constructed or provided by the De\-eloper on the De\elopment
Property shall he in conformity \\'ith the Construction Plans as s.ubmined by the De\'eloper and
appro\ed by the .-\ uthori ty.
The De\ eloper agrees for itself. its successors and assig.ns. and c\ery successor in interest to
the De\elopment Property. or any part thereof. that the De\eloper. and such successors and ::Issigns.
sh::lll promptly begin and diligently prosecute to completion the de\elopment of the De\dopment
Property through the construction of the i'vlinimum Impro\ements thereon. and that such
construction shall in any e\-ent be commcnced and complekd \\ithin the period specified in this
Section ..t.3 of this .-\greemenl. The obligation to construct the \linimuITI Impn)\ements in
accordance \\ ill1 this Section touches and concerns the land. and shall run \\ ith the De\elopment
Propel1y and be binding UpClJ1 all successors and assigns to the De\elopment Property. After the
date of this ,-\greement and until construction of the ~vlinimum Imprl)\'cments has been completed.
the Developer shall make reports. in such detail Jnd ::It such times as may reasonably be requested
by the Authority. as to the ::Ictual progress nrthe De\clopel'\\'ith respect to such construction,
Section ..t...t, Certiticate of Completion. (a) Promptly aticr completion of the: f\,!inimum
Impro\enk'nt:; in accordance \\ith thosc pro\isions of the Agreement relating solely to the
obligations of the De\ell)per to construct the Minimum Impro\'emems (including the dates for
beginning and cl)mpletion thereof\ the Authority Re:presentati\'e \\ill furnish the Developer \\ith a
Certilicate slw\\'n as Exhibit B. Such certification Jnd such determination shall not constitute
evidence of cl1mpliance with or s;]tisfaction of any obligJtion of the De\eloper to any Holder of a
1\ lortgage. or any insurer of a i\lortgage. secunng money loaned to tinunce the !\'linimul11
Impro\'eme:nts. or ;]I1Y part thereof.
(h) Promptly after completion of each T o\vnhouse in accordance \\'ith those pro\isiol1s
of the Agreement relating solely to the obligations of the De\ell1per to construct that To\\-nhouse
(including the dates fl~r beginning and cL1mpletion thereof), the Autlwrity Represento.tive \\'ill
furnish the D<;,,\eloper \\ith 0. Ceniticate shown as Exhibit C. Such certitication and such
dctermin~llil'n shall not constitute e\idence uf compliance \\ith or satisfactinn of i1l1y ublig~Hion of
the Dc\ell1per tl1 an; Holder l1r ~1 \lortgi1ge. l1r any insurcr of J \ lortg.1gC. securing money Inaned to
fi nance the \ I i ni m lIm I J1l prll\ cmc'n IS. or ~lI1y part therenf.
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(c) If the Authority shall refuse or fail to pro\'ide any ceniticmion in ::lccordance with
the prO\isions of this Se'ction .t..:J. of this :-\greel11ent. the Authority shall. within thirty (30) days atier
\\Titten request by the De\eloper. pro\"ide the De\eloper \\'ith a \\Titten statement. indicming in
::ldequate detail in \\hat respects the De\eloper has tailed to complete the' I\linimul11 Impro\'ements
in ::lccordance \\ith the provisions of the Agreement. or is other\\isC' in detoult. and \\'hat measures
or acts it will be necessary. in the opinion of the Authority. for the Developer to take or perform in
order to obtain such certitication.
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(d) The construction of any T oW!1house shall be deemed to be complete upon issu::l!1ce
of a certiticate of occupancy for that T ov.:nhouse. The construction of the l\ilinimum Improvements
shall be deemed to be complete upon the issuance of certificates of occupancy for all 10 of the
Townhouses constituting the Minimum ImprO\'ements.
Section .t.5. Plat. Prior to commencement of construction of the Minimum Improvements.
and as a condition precedent to the obligations of the City and the Authority hereunder. the
Developer and the City \-vill enter into a developer's agreement (the "Developer's Agreement")
pursuant to which the Dewloper will make certain represent::ltions in e\clunge for the City's
approval of a pint consisting of the De\-e]opment .-\greement. such agreement to be in such form as
the City and the Developer mutually agree. but in any case containing such terms as are customary
for developer's agreements entered into by the City. including but not limited to the dedic::ltion of
the Carlson Property as park land. The Developer shall perform its obligations under the
Developer's Agreement.
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ARTICLE \"
I nsu ranee and Contkmnation
Section 5,1. Insurance. (a) The De\eloper \\ill pro\ide :lI1d maintain at all times during the
process of constructing the t\linimum Impro\em<.:nts an All Risk Broad Form Bosis Insurance
Policy and. from time to time during that period. at the request of the Authority. furnish the
Authority with proof of payment of premiums on policies co\'ering the foIIO\\ing:
(i) Builder's risk insurance. written on the so-called "Builder's Risk --
Completed Value Basis." in an amount equal to one hundred percent (1000/0) of the
insurable \::11 ue of the :vI inimum I mpro\em<.:nts at the date.' of completion. and \\ith coverage
a\ailable in nonreporting form on the so-called nail risk" form of policy, The interest of the
Authority shall be protected in accordance with a clause in. form and content satisfactory to
the A uthori ty:
(ii) Compr<.:hensi\'e gt:neralliability insurance (including oper::ltions. contingent
liability. operations of subcontractors. completed opc:r:ltions and contractual liability
insurance) together \\ith an Owner.s Contractor.s Policy with limits against bodily injury
and property damage of not less than S 1,000.000 for e:.lch occurrence (to accomplish the
alK)\'e-required limits. an umbrellJ e\cess liJbility policy may be used): and
(iii)
\\'orkers. compensation insurance. \\ith swtutory co\erage.
(b) L:pon completion of construction of the l'vlinimum Impro\'emenrs and prior to the
Termination Date. the Developer shall maintain. or cause to be maintained. at its cost and expense.
and from time to time:.lt the request of the Authority shall furnish proofofthe payment ofpremiums
on. insurzlIlce as folll)\\s:
(i) Insurance against loss and/or Lbmage to the :'vlinimum Improvements under
a policy or policies co\'ering such risks as are ordin<.lrily insured against by similar
businesses:
(ii) Comprehensi\e generJ.1 public liability insurance. including personal injury
liability (\\ith employee exclusion deleted). against liability for injuries to persons and/or
property. in the minimum amount for eJ.ch occurrence and for each year of S 1.000.000. and
shall be endorsed to sho\\' the Authority as additional insured: and
(iii) Such other insurance. including workers. compensation insurance respecting
all emplu) ees of the Dewk)per. in such amount as is customarily carried by like
organiz:niuns engJ.ged in like activities of comparabk size Jnd liability exposure: pro\'ided
that the DI;'\e1L~per ll1~ly. ifpermitted by b\\. be s.:If'-insured \\ith respect to all or allY pan of
its li~lbilit: fl)r \\ orkers' (ompenS~ltil)!1.
Ic)
,.\11 inSLlr~ll1(1;' requir..:d in _-\rtick V l)f this AC2reell1C'nt shJ.11 be taken nut and
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mailltainL'd in responsibk insur,:1I1ce companies selected [1: the Dc.'\cloper \\hich are authorized
und"r the l~l\\S or the St~ltl.' tll as:;ul1le the ris\..;s co\ered thereb:" L"pon request. the Dc\"eloper \vill
depl)sit :1I11111~t1ly \\ ith th.... .-\uthority policies e\'idcncing all .:;uch insur;)nce. l)r a certificate or
Cc.'rtilicatl.'s ur hind!.:'r:; l)f the respective insurers stating that su..:h insur':lllce is in force and etl~ct.
L"nk'ss uthc:n\ is.: prO\idcd in this Article V of this .-\greement. e~H:h policy shall contain a pru\ision
that the insurer shall not cancel nor moditY it in such a \\ay as to reduce the co\-erage pro\ided
belo\\ the Ul110unts required herein \\ithout gi\'ing written notice to the Developer and the Authority
at least thirty (30) days before the cancellation or moditication becomes effective, In lieu of
separate policies. the Developer may maintain a single policy. blanket or umbrella policies. or a
combination thereof. ha\'ing the co\-erage required herein, in which event the De\'eloper shall
deposi t \\i th the A uthority a certiticate or certi ticates of the respecti ve insurers as to the amount of
cO\"i~rage in force upon the ^'Iinimum Impro\'ements,
(d) The Developer agrees to notit), the Authority immediately in the case of damage
exceeding S] 00.000 in amount to. or destruction of the i"vlinimum Improvements or any portion
thereof resulting from tire or other casualty. In such eVent the De\eloper either \vill forthwith
repair. reconstruct. and restore the Minimum Impro\'ements to substantially the same or an
improwd condition or \'alue as it existed prior to the e\ent c~lllsing such damage and. to the extent
necessary to accompl ish such repair. reconstruction. and restoration. the De\'eloper \\-ill apply the
Net Proceeds of any insurance relating to such damage recei\ed by the Developerto the payment or
reimbursement of the costs thereof.
The Dewloper shall complete the repair. reconstruction. and restoration of the l'vlinimum
Impro\Cmenrs. \\hether or not the Net Proceeds of insurance rec.:ei\'ed by the Dewloper for such
purposes are sufficient to pay for the same. Any ?\jet Proceeds remaining after completion of such
repairs. construction and restorution shall be the property of the Developer.
(e) The Dewloper and the Authority agree that all of the insurance provisions set forth
in this ,-\rtic.:le \/ shall terminate upon the T erminarion Date"
[) I( ,":1I7S<l', ,:
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ARTICLE \'1
Tn:\ Increment: Ta:\es
Section 6. I. Ri!.!ht to Collect Delinquent Taws. The De\elopl;"r aCknlH\ Icd:;es th:ll the
Authority is prLl\iding subst:lnti:d aid and assistance in furtherance l)f the dC\l'IL)rmc?nt. The
De\eloper understands that the tax increment intended to p<.1y expenses of the .A.ut!writy ::lI1d the
Developer art:' dcri \ed from real estate taxes on the Development Propeny. \\ hich taxes must be
promptly and timely paid. To that end. the Developer a.grees fur itself in Jddition to the obligation
pursua.nt to st::llUte to pay real estJte taxes. that it is also obligated by reason of this Agreement to
pay before delinquency all real estate taxes assessed against the De\e1opment Property and the
l'vlinimum Imprm'ements during the period the De\e1oper 0\\ ns the Oe\elL)pment PrClperty. The
Developer ad~nl)\\ledges that this obligation creates a contractu~d right on belul f of the _-\ L1thority to
sue the De\eloper to collect delinquent real est:ne taxes and any penalty or interest thereon to the
extent that such taxes. penalty. or interest :lre a.ssessed or accrue during the peril)d that the
De\eloper 0\\ ns the De\'elopmem Property. and to pay O\er the same as a tax p:::lyment to the
county auditor. In any such suit. the Authority sh:::lll also he entitled to rl.'cO\er its costs. expenses.
and attorne\ fees,
Section 6.2_ Reduction of Taxes. The Oe\eloper o.grees that prior to the T erminJtion Date:
(]) it \\ill l1L)t sl.'ek :.Idministr:.Itiw re\'ie\\' or judicial re\'ie\\ of the applicJbility of any tax statute
determined by :lny Tax Official to be applicable to the j\"linimum Impro\ements. the Development
Property. or the De\eloper. or raise the inapplicability of any such tax statute :.IS a defense in any
proceedings. including delinquent tax proceedings: (2) it \\ill not seek administrati\'e re\-iew or
judicial re\ie\\ of the constitutionality of any tax statute determined by any Tax Ofticial to be
applicable to the :-vlinimum Impro\ements. the De\'elopment Propeny or the Dewloper or raise the
unconstinnionalityof any such tax statute as a defense in ::my proceedings. including delinquent tax
proceedings: (:;) it \\ill not cause a reduction in the j\;linimum \-1arkct Value (:.IS ddined in Section
6.3) paid in r~spect of the Dc\elopment Property through: (A) \\illful destruction uf the tvfinimum
I mprO\elllellls. llr any purt thereof: ( B) wi II ful re fusal to reconstruct d~lmaged or destroyed property
pursuant to Section 5.] of this Agreement. except as pro\'ided in Section 5, I (e) or this Agreement:
(C) a request tl) the assessor to reduce the l'vlinimum Market V~llue of all or any portion of the
De\elopmcnt Propeny: (D) a petition to the bO:lrd of equalization of the- County to reduce the
l'vlinimum \!Jr!.;et Value of all or any portion of the Dewlopment Property: (E) a petition to the
boa.rd of equalization of the State or the Commissioner of Re\enue of the State to reduce the
Minimum \larket Value of all or any portion of the Dewlopment Prop_my: (F) an action in a
district coun or the State or the tax court of the Stak pursuant to :--vlinnesL1ta Statutes. Chapter 278.
seeking a reduction in the \Iinimum \/arket Value ol'the De\elopment Property: (G) an application
to the Commissioner of Re\cnue of the State requesting all ahatement of real property taxes
purSU~111l t,l \linnesot::l Statutes. Ch~lpter 270: (H) :.Iny other pnKeedin:;s. \\hethl'r administrati\e.
legal Clr equiuble. \\ith allY administrati\e bl.dy \\itJ1in the Cnunl> or the State or \\ith any court of
the State ,lr thL' fL'lkral go\ernmcnr: or (I) a tr:lnsfer l)r the DL'\cl()pmcnt Prol'eny. or ~lI1Y pnn
therel)f. tll an cntity c::xempt fwm the payment of re~ll pr,)peny tax~s under State la\\. The
De\ell'per :-:luII11l)!. prior tu the T crmination DUle. Jl'pl: ,'or:l dC(<..'IT:li ,)r ~ll'~llL'mL'llt n'.pr()pe!'l: t;1X
on the On elnl'mC11l Pr,lperl: purSU~lI1t ll) an: la\\. reguliltiul1. Clr (ll'<..lin_lIKC,
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Section 6.3. Assessment Agreement. (a) Prior to or concurrentlv with execution of this
Agreement. the De\'e1oper shall. with the Authority. execute an Assessment Agreement pursuant to
J\.1innesota Statutes. Section 469.177. subd. 8. specifying an assessor's minimum market \'alue (th~
"Minimum ~Iurket Value") for each of the Parcels. and all improvements thereon. The combined
amount of the Minimum Market Values for the Parcels and the Townhouses thereon shall be
$ L 900.000 as of January 2. 2003 notwithstanding the progress of construction of the Minimum
Improvements by such dare.
(b) Each Assessment Agreement shall be substantiallv in the form attached hereto as
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Exhibit D. Nothing in the Assessment Agreement shall limit the discretion of the assessorto assign
a market value to the Development Property in excess of the Minimum Market Value. The
Assessment Agreement shall remain in force until the Termination Date.
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