07-11-2018 Council Packet - Laserfiche WebLink

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DISBURSING AGREEMENT THIS AGREEMENT is made and entered into as of this ___ day of July, 2018, by the City of Little Canada, a Minnesota municipal corporation (hereinafter "City") and 93 West LLC (hereinafter "Developer"). RECITALS: WHEREAS, Developer had proposed a Senior Living redevelopment project for the property owned at 93 West Little Canada Road (hereinafter “the Property”) that is also identified by Ramsey County PIN 06-29-22-32-0009; and WHEREAS, the City requested that the project be moved to another site that was a better fit for its long-term planning objectives; and WHEREAS, this action created a negative financial impact to Developer that the City offered to offset by providing a $200,000 payment to the Developer that is to be used to improve the building located on the Property and thereby enhance the City’s tax base and economic vitality; and WHEREAS, the source of the City’s funding will come from the $200,000 gained in the assignment of a purchase agreement to the Senior Housing project developer located at 2938 and 2944 Rice Street; and WHEREAS, The City will disburse the $200,000 to the Developer subject to the terms and conditions hereinafter set forth. NOW, THEREFORE, in consideration of the covenants set forth in this agreement and other good and valuable consideration, the receipt and the sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 1. Project Scope and Budget. The Project Improvements shall be based upon the Approved Work Scope attached hereto as Exhibit A. Said work scope shall be arrived at based on Developer’s desired improvements to the property. For each item of the work scope, Developer shall obtain at least two competitive quotations and provide evidence of same to the City along with an executed copy of the contract for said work. The Developer shall then total the amount of each improvement and arrive at a Project Cost. To that amount, a 10% contingency factor shall be added to arrive at a Total Project Cost. No reduction in the Project Improvements shall be made without the prior written approval of the City. 2. Deposits in Project Fund. City will deposit Two hundred thousand dollars ($200,000.00) of City funds in a separate account controlled and managed by the City to reimburse Developer for costs paid in association with the improvements made to the Property subject to the terms as outlined in this agreement. The City’s $200,000 shall be the first money expended for Developer reimbursement. The Developer shall deposit with the City the difference between the Total Project Cost described in Provision #1 and the City’s $200,000 to ensure that sufficient funds are on hand to complete the Project Improvements. To the extent that funds