11-24-2004 Council Agenda - Laserfiche WebLink

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SUMMARY OF DEVELOPMENT AGREEMENT BETWEEN THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF LITTLE CANADA AND THE VILLAS AT LITTLE CANADA LLC FOR THE DEVELOPMENT OF 44 RESIDENTIAL TOWNHOME UNITS This memorandum summarizes the principal "business" terms of the Development Agreement ( "Agreement ") between the Economic Development Authority of the City of Little Canada (the "EDA ") and The Villas at Little Canada LLC (the "Developer "), draft dated July 14, 2003 (Briggs and Morgan Document No. 1450998v8) and the Purchase Agreement between the EDA and the Developer, draft dated July 17, 2003 (Briggs and Morgan Document No 1455685v6). Development Agreement • Section 5.1 recites the fact that the Developer has entered into a contract for deed to purchase the " Mellgren Property" (which is legally described on Exhibit A -1 of the Agreement). The Agreement obligates the Developer to fully perfoiut its obligations under the contract for deed and acquire fee title to the Mellgren Property on or before June 30, 2004. The July 30, 2004 date may be extended to December 31, 2005 if the Mellgrens refuse to convey title and the Developer is forced to sue to enforce the contract for deed. • Section 5.2 recites the EDA's obligation to convey the RutzildCardinaUVenetian Property to the Developer and the Developer's obligation to purchase the Rutzik/Cardinal /Venetian Property from the EDA subject to the terms of the Purchase Agreement. The principal "business" terms of the Purchase Agreement are summarized below. • Section 6.3 obligates the Developer, subject to extensions as a result of unavoidable delays, to substantially complete the construction of eight townhome units on or before March 31, 2004, an additional 18 townhome units on or before December 31, 2004 and the final 18 townhome units on or before December 31, 2005. The townhome units must be constructed in accordance with the construction plans the Developer has already subntitted to the EDA. • Section 6.6 obligates the Developer to grant the EDA a mortgage on the Rutzik/Cardinal /Venetian Property to secure the Developer's obligations under the $200,000 Promissory Note the Developer and the Lodge at Little Canada LLC executed in favor of the EDA in connection with The Lodge at Little Canada LLC's acquisition of the rental housing site. • Section 7.1 obligates the Developer to execute an Assessment Agreement establishing minimum market values for the Development Property for real estate tax purposes. The minimum market values are: $2,152,320 as of January 2, 2004, $6,995,040 as of January 2, 2005 and $11,837,760 as of January 2, 2006 and as of each January 2 thereafter through and including January 2, 2021. 1551028v1 - 1 8 -