09-25-2019 Council Packet - Laserfiche WebLink

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STAFF REPORT TO: President Keis and Members of Economic Development Authority FROM: Chris Heineman, City Administrator DATE: September 25, 2019 RE: Partial Termination of and Release of Property from Development Agreement, Termination of Assessment Agreement, and Termination of Purchase Agreement with The Village at Little Canada, LLC. BACKGROUND: Sherman Associates is in the process of selling all of the parcels associated with development known as The Village at Little Canada, LLC. Sherman and Associates recently made a similar request when the Lodge Apartments at Little Canada, LLC was sold to Highland Property Management Group. The EDA approved the Assignment and Subordination of TIF and Development Agreements for this project in July, 2019. The Village at Little Canada LLC desires to terminate any and all rights and obligations with the EDA that are connected to The Village at Little Canada property, particularly Parcels 1 and 2 and Parcel 4 (Parcel 3 was previously sold in 2009, and development rights transferred, to Sweet Cream Properties Little Canada, LLC). The Village at Little Canada LLC is currently a party to a Purchase and Sale Agreement to sell Parcels 1 and 2, with a scheduled closing date of October 31, 2019. The Village at Little Canada LLC desires to enter into the attached Partial Termination of and Release of Property from Development Agreement, Termination of Assessment Agreement, and Termination of Purchase Agreement with the Economic Development Authority of the City of Little Canada in order to accomplish the following (terms used are defined in the attached agreements): 1) Terminate the Development Agreement, as it applies to Parcels 1 and 2 and Parcel 4, and the EDA’s and Developer’s rights and obligations under the Development Agreement, as they apply to Parcels 1 and 2 and Parcel 4; 2) Release Parcels 1 and 2 and Parcel 4 from the Development Agreement; 3) Release Parcels 1 and 2 from the Assessment Agreement and terminate the Assessment Agreement; 4) Terminate the Purchase Agreement for Parcel 4; and 5) Mutual release of each of the parties to the Development Agreement, Assessment Agreement, and Purchase Agreement. Please note that, as part of the termination of the Purchase Agreement for Parcel 4, The Village at Little Canada LLC will provide the EDA with a signed quit claim deed for that parcel. The purpose of this deed is not for immediate recordation as the title for this property is still with the EDA. However, in the event that The Village at Little Canada LLC attempted to assert any rights to the property under the terminated Purchase Agreement, the City would have a deed from The Village at Little Canada LLC conveying the property at issue as security against any such assertions.