09/12/2005 Council Packet - Laserfiche WebLink

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STAFF ORIGINATOR: EDA MEETING DATE: TOPIC: ACTION REQUIRED: BACKGROUND AGENDA ITEM 3 Michael Grochala September 12, 2005 Consideration of Resolution No. 05 -02 Approving First Amendment to Contract for Private Development. Legacy at Woods Edge Simple Majority In October of 2004 the City Council approved the Contract for Private Development between the Economic Development Authority (EDA), City and Hartford Development, Inc., for the Legacy at Woods Edge project. Hartford Development closed on the City owned property and the Tagg property in December of 2004. Under Section 3.5 of the Contract referenced above, the EDA agreed to disburse $1,700,000 to the "Development Property Owner" (an entity related to Hartford Development, Inc.) under certain terms and conditions. Disbursement was a two -step process: the funds were to be placed with an escrow agent after (among other things), the City had approved a preliminary plat for the first townhome development. Then, funds would be disbursed to the Development Property Owner when the City had issued the first building permit for the townhomes, and the parties executed Assessment Agreement setting minimum market values for the townhomes in an amount sufficient to generate tax increment needed to repay the full $1,700,000 interfund loan. Since that time, the original townhome proposal has been withdrawn, and Hartford is working towards City approval of a mixed -use development as the first phase, including 60 units of workforce rental housing with associated commercial space and a separate hotel facility. The current schedule calls for council consideration of the site plan and final plat for that development on October 12. The other key change since the date of the Contract is that the City has received a Met Council grant in the amount of $750,000, which will reduce the Interfund Loan of City funds by that amount. Hartford has now requested that the Contract be amended to permit different terms for dispersal of the $1.7 million. The reason for this request is that Hartford purchased the "TIF Parcel" from Tagg under a note and mortgage, which Hartford expected to pay with proceeds of the Interfund Loan (assuming the conditions described above would be met, given the expected townhome development). When the townhome development