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HomeMy WebLinkAboutResolution No. 16-02 EDALINO LAKES ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 16-02 RESOLUTION APPROVING A PRELIMINARY DEVELOPMENT AGREEMENT WITH DM LAND, LLC WHEREAS, the Lino Lakes Economic Development Authority (the "Authority") desires to promote redevelopment of property located in the City of Lino Lakes, Minnesota (the "City") known as the Old 49 Club Site (the "Property"); and WHEREAS, the Developer owns the Property and intends to demolish the restaurant and garage buildings currently located on the Property; and WHEREAS, pursuant to a report from LHB, dated March 27, 2015, the buildings are in substandard condition; and WHEREAS, the Board of Commissioners of the Authority (the "Board") has previously found the buildings located on the Property to be structurally substandard within the meaning of Minnesota Statutes, Section 469.174, subdivision 10; and WHEREAS, demolition of the existing buildings will encourage the redevelopment of the Property; and WHEREAS, there has been presented before the Board a form of Preliminary Development Agreement (the "Preliminary Development Agreement") proposed to be entered into between the Authority and the Developer, which sets forth the Developer's intentions and the conditions under which the Developer will demolish the existing buildings on the Property and undertake the redevelopment of the Property; and WHEREAS, a preliminary development agreement entered into prior to demolition is required by Minnesota Statutes, Section 469.174, subdivision 10 in order for the Authority to be able to establish a redevelopment tax increment district after the demolition occurs; and WHEREAS, the Authority has reviewed the Preliminary Development Agreement and finds that the execution thereof by the Authority and the performance of the Authority's obligations thereunder are in the best interest of the City and its residents; NOW, THEREFORE, BE IT RESOLVED BY THE Board of Commissioners of the Lino Lakes Economic Development Authority as follows: 476794v1 JAE LN140-114 1. The Preliminary Development Agreement in substantially the form presented to the Board and on file with the Community Development Director of the City is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director; provided that execution of such documents by such officials shall be conclusive evidence of approval. 2. The President and Executive Director are hereby authorized to execute the Preliminary Development Agreement on behalf of the Authority and to carry out on behalf of the Authority the Authority's obligations thereunder. Adopted by the Board of Commissioners of the Lino Lakes Economic Development Authority this 11t day of April, 2016. The motion for the adoption of the foregoing resolution was introduced by Board Member Rafferty and was duly seconded by Board Member Manthey and upon vote being taken thereon, the following voted in favor thereof: Rafferty, Manthey, Reinert, Kusterman, Maher The following voted against same: none ATTEST: lson, Executive Director 2 476794v1 JAE LN140-114 WilliamKusterman, President �-� PRELIMINARY DEVELOPMENT AGREEMENT THIS PRELIMINARY DEVELOPMENT AGREEMENT (this "Agreement"), dated this day of , 2016, by and between the Lino Lakes Economic Development Authority, a municipal corporation and political subdivision under the laws of the State of Minnesota (the "EDA") and DM Land, LLC, a Minnesota limited liability company, or its successors or assigns (the "Developer"): WITNESSETH WHEREAS, the EDA desires to promote redevelopment of property known as the 49 Club Site, located in the City of Lino Lakes, and legally described in Exhibit A (the "Property"); and WHEREAS, the Developer owns the Property and intends to demolish the restaurant building and garage currently located on the Property; and WHEREAS, pursuant to a report from LHB, dated March 27, 2015, the buildings are in substandard condition; and WHEREAS, by resolution adopted on the date hereof, the EDA Board has found the buildings located on the Property to be structurally substandard within the meaning of Minnesota Statutes, Section 469.174, subd. 10(b); and WHEREAS, the EDA and the Developer have determined that it is in the best interest of the parties to demolish the existing building and agree to cooperate with respect to potential future redevelopment of the Property, all as further described in this Agreement; NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations set forth herein, the parties agree as follows: shall: 1. During the term of this Agreement, the Developer (or its successors and assigns) (a) At no cost to the EDA, cause the existing buildings on the Property to be demolished and all demolition debris to be removed from the Property as soon as reasonably practicable after the date of this Agreement. The parties agree that Developer will not be required to remove the existing concrete and asphalt slabs on the Property. The parties agree that such demolition shall occur no later than October 31, 2016. (b) Maintain the Property in compliance with City ordinances. The Parties agree that leaving the concrete and asphalt slabs on the Property are in compliance with City ordinances. (c) If the Developer determines not to undertake redevelopment of the Property directly, it will use its best efforts to seek a successor entity that will proceed with such 445151vI JAE WA445-15 redevelopment. (d) Negotiate in good faith with the EDA regarding any proposed redevelopment of the Property, including any possible public financial assistance related thereof, all with the goal of entering into a contract for private redevelopment (the "Contract"). 2. During the term of this Agreement, the EDA agrees to: (a) Review any proposed successor to the Developer, and if the EDA determines to approve that successor, thereafter cooperate with the successor as the Developer under this Agreement. (b) Cooperate with the Developer or its successor in evaluating any redevelopment proposal submitted by the Developer, including whether any public financial assistance is warranted in connection with that effort. (c) Proceed to seek all necessary information with regard to the anticipated public costs associated with any proposed redevelopment. (d) If the EDA determines that tax increment assistance is reasonably necessary in order to induce the proposed redevelopment of the Property, with the Developer's assistance, begin the process to create a redevelopment, a housing or a renewal and renovation tax increment financing district encompassing the Property, including the preparation of a tax increment financing plan, pursuant to Minnesota Statutes, Sections 469.174 through 469.1799, as amended (collectively, the "TIF Act"); provided that parties agree and understand that the EDA must file a request for certification of such a tax increment financing district within three years after the date of demolition of the building on the Property, unless Section 469.174, subd. 10(d) is hereafter amended to extend that time period. (e) Negotiate in good faith with the Developer or a successor regarding any proposed redevelopment of the Property, including any possible public financial assistance related thereto, all with the goal of entering into a Contract. 3. It is expressly understood that execution and implementation of the Contract shall be subject to: (a) A determination by the EDA in its sole discretion that its undertakings are feasible based on (i) the projected tax increment revenues and any other revenues designated by the EDA; (ii) the purposes and objectives of any tax increment, development, or other plan created or proposed for the purpose of providing financial assistance for the Redevelopment; and (iii) the best interests of the EDA. (b) A determination by the EDA that any EDA financial assistance is reasonably necessary in order to make the Redevelopment financially feasible. 445151v1 JAE WA445-15 2 (c) A determination by the Developer or its successor that the Redevelopment is economically feasible and in the best interests of the Developer or his successor. 4. This Agreement is effective from the date hereof through December 31, 2017. After such date, neither party shall have any obligation hereunder except as expressly set forth to the contrary herein. Notwithstanding anything to the contrary herein, the term of this Agreement may be extended by mutual written agreement of the parties, provided that the EDA's approval of such extension may be given by the EDA Executive Director. 5. The Developer shall solely be responsible for all costs incurred by the Developer, and the EDA shall be solely responsible for all costs incurred by the EDA, in connection with the negotiation and drafting of this Agreement and the parties obligations hereunder. 6. This Agreement may be terminated upon ten (10) days written notice by either party to the other of any of the following events of default, only if such events of default shall remain uncured during the aforementioned notice period: (a) an essential precondition to the execution of the Contract cannot be met; or (b) if, in the sole discretion of the EDA, an impasse has been reached in the negotiation or implementation of any material term or condition of this Agreement or the Contract; or 7. If any portion of this Agreement is held invalid by a court of competent jurisdiction, such decision shall not affect the validity of any remaining portion of the Agreement. 8. In the event any covenant contained in this Agreement should be breached by one party and subsequently waived by another party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach. This Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. 9. Notice or demand or other communication between or among the parties shall be sufficiently given if sent by mail, postage prepaid, return receipt requested or delivered personally: (a) As to the EDA: 445151v1 JAE WA445-15 Lino Lakes Economic Development Authority Lino Lakes City Hall 600 Town Center Pkwy Lino Lakes, MN 55014-1182 Attn: Community Development Director 3 (b) As to the Developer: DM Land, LLC 14814 102nd Street Circle N Stillwater, MN 55082 Attn: Damon K. Lawson and Brutlag, Hartmann, & Trucke, P.A. 3555 Plymouth Blvd. Ste. 117 Plymouth, MN 55447 Attn: Matthew Doherty 10. This Agreement may be executed simultaneously in any number of counterparts, all of which shall constitute one and the same instrument. 11. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 445151 v1 JAE WA445-15 4 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first above written. 476746v1 JAE LN140-114 LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY By Its President By Its Executive Director DM LAND, LLC S-1 Damon K. Lawson Its EXHIBIT A DESCRIPTION OF PROPERTY Parcel A Address: 6007 Hodgson Road, Lino Lakes, Minnesota PID: 31-31-22-43-0007 Parcel B Address: 295 Ash Street, Lino Lakes, Minnesota PID: 31-31-22-43-0006 Address: PID: Parcel C [no street address] 31-31-22-43-0017 476746v1 JAE LN140-114 A- 1