07-25-2001 Council Agenda - Laserfiche WebLink

Home Browse Search

July 20, 2001 Mr. Tom Bray Briggs and Morgan 2200 First National Bank Building 332 Minnesota Street St. Paul, MN 55101 Re: Revisions to RAB, LLC (Biagini) Development Agreement Dear Tom: Here are the key points for revising the Development Agreement with RAB, LLC. Phase I component to be revised to establish an escrow account to be maintained by C. I. Title, Inc. (or another entity that is to be mutually approved by the Developer and the City). Commencing October 1', 2001 and continuing until the completion of obligations under this agreement (2015), the Developer is to make monthly deposits equal to the greater of $7,833.33 ($94,000 annually) or the City's estimates of the following year's taxes based on conditions in effect at the time plus the estimates of the following year's TIF guarantee payment. Payments of taxes and the TIF guarantee are to be made by the escrow agent. (The TIF guarantee payments will follow the procedures already present in the Development Agreement.) If the fund builds up sufficient proceeds to fund the continuing obligations through completion, then deposits may be reduced or eliminated. • Developer shall make the TIF guarantee payment for Phase I, 2001 at closing. This amount is 65,660.37. C. Phase I will Developer will remain RAB, LLC. • Developer needs to cure remaining default provisions for Phase I. (I'm not exactly sure what is left, but he definitely needs an acknowledgement from Lender agreeing to be bound by Assessment Agreement. C. For Phase II, an assignment of responsibilities will occur. Mr. Biagini has a new partner, Tony Weber. I don't have the legal name for the assignment yet. • The closing date on the land transaction is to be no later than July 27'h, 2001'. C. Construction on Phase II must start no later than August l" 2001. Construction on Phase II must be completed by December 31, 2001 so as to yield the minimum assessed value on January 2, 2002. • Provision #11 in your last draft of this amendment should remain as long as it won't prevent obtaining a mortgage. (This was the cancellation provision.) • Phase II requires a letter of credit at closing equal to $115,000. It covers two provisions. 1. If the developer doesn't achieve completion by 12/31/01 to attain minimum assessed value, then $15,000 of the letter of credit is available to make up any deficiencies in the TIF Guarantee commencing in 2003. If Developer completes and attains value, then this amount can be released. 2. The remaining $100,000 is available to make the TIF guarantee payments through completion of the agreement. If Developer makes the I'1F guarantee payment in cash without PAGE 85