10-09-2002 Council Agenda - Laserfiche WebLink

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515 Little Canada Road, Little Canada, MN 55117 -1600 (651) 766 -4029 / FAX: (651) 766 -4.048 www.ci.1ittle- canada.mn.us MEMORANDUM TO: Mayor Fahey & Members of the City Council FROM: Joel Hanson, City Administrator DATE: October 4, 2002 RE: CommonBond Project (Garden Terrace) VIAYOR Michael I. Fahey COUNCIL, Beverly Scalze Jim [aValle Matt Anderson Rick Montour ADMINISTRATOR Joel R. Hanson There are two issues we need to address relative to the addition to Garden Terrace. The first relates to a condition we placed on the approval of the plat. Due to mortgage requirements of the Department of Housing and Urban Development, there will be separate ownership entities for the old and new building respectively. Under building code provisions, separate ownership prohibits penetration between common walls. Therefore, we recommended a covenant be placed on the project that would require both units be sold to common ownership should a sale ever be contemplated in the future. The timing of the HUD mortgage payoffs and the difficulty in obtaining their approval of this restriction made this a cumbersome process to complete. Further negotiations would be necessary and costly due to involvement of various attorneys. In discussing this situation with Mr. Jon Weiss of CommonBond Communities, we came to the conclusion that, practically speaking, this issue will resolve itself at the appropriate time. Therefore, it did not make much sense to pursue a covenant will prove unnecessary in the final analysis. As a result, it is my recommendation we amend our approval of their subdivision thereby removing the requirement that CommonBond enter into a covenant agreement requiring compliance with all building code requirements should the common ownership of the building change. The other item needing attention is the release of the Market Place Development agreement from the property we are selling to CommonBond. As you may recall, we had a development agreement over the entire Market Place property when we assisted with its acquisition and renovation back in 1995. Since they (Market Place) have gifted the property to us and we are selling it to CommonBond, the development agreement should not apply to this property. Therefore, Briggs & Morgan has prepared a partial release that addresses only the property in question. The other applicable provisions will still be in force relative to the Market Place shopping center. The suggested release is attached. Please note that we must convene as the RDA to approve this document. cc: Jon Weiss