HomeMy WebLinkAbout11-14-2005 EDA PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY
MONDAY
NOVEMBER 14, 2005
6:00 P.M.
1. Call to Order and Roll Call
2. Consideration of Minutes of September 13, 2005
3. Consideration of Resolution No. 05-03 Approving the Assignment and Release of
Certain Obligations under the Contract for Private Development with Hartford
Development, Inc.
4. Adjourn
DATE
MEMBERS PRESENT
MEMBERS ABSENT
OTHERS PRESENT
Draft
CITY OF LINO LAKES
ECONOMIC DEVELOPMENT AUTHORITY
MINUTES
: September 13, 2005
: J. Bergeson, D. Carlson, C. Dahl, J. Reinert, D. Stoltz
: None
: Mary Divine, Gordon Heitke, Steve Bubul
Meeting called to order by President Reinert at 6:20 p.m.
CONSIDERATION OF MINUTES OF FEBRUARY 28, 2005
EDA Member Bergeson moved to approve the February 28, 2005 minutes, as presented. EDA
Member Carlson seconded the motion. Motion passed unanimously.
CONSIDERATION OF RESOLUTION 05-02 APPROVING AMENDMENT TO THE
CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN THE LINO LAKES
ECONOMIC DEVELOPMENT AUTHORITY, CITY AND HARTFORD
DEVELOPMENT,INC.
Ms. Divine summarized the Staff report, indicating that Staff is recommending approval. This item
was discussed in detail during the city council work session, held just prior to the EDA meeting.
EDA Member Stoltz moved to adopt Resolution No. 05-02 approving the amendment to the contract
for private development between the Lino Lakes Economic Development Authority and Hartford
Development. EDA Member Bergeson seconded the motion.
Motion passed unanimously.
ADJOURNMENT
There being no further business, EDA Member Carlson moved to adjourn. EDA Member Stoltz
seconded the motion. Motion passed unanimously.
Meeting adjourned at 6:25 p.m.
Transcribed by:
Karen Bucklen
TimeSaver Off Site Secretarial, Inc.
AGENDA ITEM 3
STAFF ORIGINATOR: Mary Alice Divine
DATE: 011/14/05
TOPIC: Resolution No. 05-03 Approving the Assignment and
Release of Certain Obligations under the Contract for
Private Development with Hartford Development, Inc.
Vote Required: Simple Majority
BACKGROUND:
The Economic Development Authority entered into a Contract for Private
Development with the Hartford Group on December 20, 2004, (amended on
September 13, 2005) setting forth the terms and conditions of redevelopment for
Legacy at Woods Edge.
The Contract acknowledges that Hartford Group plans to sell certain portions of
the development property to subdevelopers, and requires that any proposed
subdeveloper assume all the obligations of the developer for the portion of the
property being transferred. The subdeveloper must agree to be subject to all the
conditions and restrictions of the Contract, including the construction of minimum
improvements on the site.
This EDA action releases the Hartford Group from the conditions that will be
assumed by the subdeveloper (GCI Builders, Inc.) for the Country Inn & Suites
site. This release will be delivered upon approval of the site development
agreement with the Country Inn & Suites developer.
OPTIONS:
1. Approve Resolution No. 05-03 Approving the Assignment and Release of
Certain Obligations for the Country Inn & Suites site under the contract
with Hartford Group.
2. Do not approve Resolution No. 05-03
3. Return to staff for further consideration.
RECOMMENDATION:
Option 1
LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 05-03
RESOLUTION APPROVING ASSIGNMENT AND RELEASE OF CERTAIN
OBLIGATIONS UNDER CONTRACT FOR PRIVATE DEVELOPMENT
BETWEEN THE LINO LAKES ECONOMIC DEVELOPMENT AUTHORITY,
THE CITY OF LINO LAKES AND HARTFORD DEVELOPMENT, INC.
BE IT RESOLVED By the Board of Commissioners ("Board") of the Lino Lakes Economic
Development Authority ("Authority") as follows:
Section 1. Recitals.
1.01. The Authority currently administers Development District No. 1 (the "Project)"
pursuant to Minnesota Statutes, Sections 469.124 to 469.134 ("Development District Act").
1.02. The Authority, the City of Lino Lakes ("City") and Hartford Development, Inc. (the
"Developer") entered into a into a Contract for Private Development dated December 20, 2004, as
amended by a First Amendment thereto dated September 13, 2005 (the "Contract"), setting forth the
terms and conditions of redevelopment of certain property within the Project, referred to generally
as the Legacy at Woods Edge Project.
1.03. The Developer and Legacy Holdings-LL, LLC (the "Development Property Owner")
have determined need to assign certain obligations under the Contract to CGI Builders, Inc. (the
"Successor Developer").
1.04. The Authority has reviewed an Approval of Assignment and Release of Obligations
under Contract for Private Development, County Inn & Suites Hotel, between the Authority, the
City, the Developer and the Successor Developer (the "Assignment"), and finds that the execution
thereof is in the best interest of the City and its residents.
Section 2. Authority Approval; Further Proceedings.
2.01. The Assignment as presented to the Board 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 the documents by such officials shall
be conclusive evidence of approval.
2.02. The President and Executive Director are hereby authorized to execute on behalf of
the Authority the Assignment and any documents referenced therein requiring execution by the
Authority, and to carry out, on behalf of the Authority its obligations thereunder.
SJB-267750v1
LN 140-80
Approved by the Board of Commissioners of the Lino Lakes Economic Development
Authority this 14th of November, 2005.
ATTEST:
Secretary
SJB-267750v1
LN I40-80
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President
I. Recital.
1.1
APPROVAL OF ASSIGNMENT AND RELEASE
OF OBLIGATIONS UNDER
CONTRACT FOR PRIVATE DEVELOPMENT
COUNTRY INN & SUITES HOTEL
The Effective Date of this Agreement is , 2005.
1.2 The Parties to this Agreement are the LINO LAKES ECONOMIC
DEVELOPMENT AUTHORITY, a public body corporate and politic under the laws of
Minnesota (the "Authority"), the CITY OF LINO LAKES, a Minnesota municipal corporation
(the "City") and HARTFORD DEVELOPMENT, INC., a Minnesota corporation (the "Master
Developer") and CGI BUILDERS, INC., a Minnesota corporation ("Successor Developer").
1.3 The Authority, City and Master Developer are parties to a Contract for Private
Development dated December 20, 2004, recorded December 29, 2004, as Document No.
1971748.006, in the Office of the Anoka County Recorder, as amended by a First Amendment
thereto dated September 13, 2005 (the "Contract").
1.4 Various real estate parcels are subject to the Contract and Successor Developer
has entered into an agreement with Legacy Holdings-LL, LLC, an affiliate of Master Developer,
to purchase one of the parcels subject to the Contract for the purpose of developing a hotel (the
"Hotel Development"). Such parcel is legally described as:
Lot 4, Block 1, The Village No. 4, Anoka County, Minnesota
(the "Subject Parcel")
1.5 In connection with the sale of the Subject Parcel, Master Developer has requested
approval of an assignment of and a release from the terms and conditions of the Contract as to
the Subject Parcel pursuant to Article VIII of the Contract.
1.6 Master Developer desires to assign, and Successor Developer desires to assume
Master Developer's rights and obligations under the Contract with respect to the transferred Parcel.
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1.7 City has approved the Subject Parcel for use consistent with the proposed Hotel
Development. On that basis, City and Authority are willing to approve an assignment of the
Contract to Successor Developer and release Master Developer from the terms and conditions of
the Contract subject to the terms and conditions of this assignment.
THEREFORE, IT IS AGREED AS FOLLOWS:
H. Agreement.
2.1 Master Developer hereby assigns, and Successor Developer hereby expressly
assumes all of the rights and obligations of Master Developer under the Contract with respect to
construction of hotel on the Subject Parcel with a minimum market value of $3,750,000 (the "Hotel
Improvements").
2.2 The parties hereto agree and understand that the Hotel Improvements constitute a
portion of the Commercial Component of the Minimum Improvements under the Contract.
2.3 The Authority and the City hereby consent to and approve the assignment in
sections 2.1 and 2.2 above.
2.2 From and after the effective date set forth above, Master Developer is released
from its obligations under the Contract as to the Subject Parcel and as to the portion of the
Commercial Component represented by the Hotel Improvements, subject to the following:
(a) Master Developer remains liable under the Contract as to all other parcels
subject to the Contract that are not released hereby or previously released, and as to all
other provisions of the Contract.
(b) Successor Developer agrees and understands that the Subject Parcel is
subject to the Assessment Agreement between the Authority and Developer dated
, 2005 ("Assessment Agreement"), setting a minimum market value for the
Subject Parcel and the Hotel Improvements constructed thereon for the period described
in the Assessment Agreement.
(c) Satisfactory completion by Successor Developer of the Hotel
Improvements will be considered satisfaction of Developer's obligations as to a portion
of the market value of Commercial Component under Section 4.3 of the Contract, such
portion being the minimum value of $3,750,000 or the actual value upon completion,
whichever is greater. However, nothing in this agreement will relieve Developer of its
obligation to construct the remainder of the Commercial Component in accordance with
the Contract.
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This document drafted by:
Hartford Group, Inc. (FAJ)
1300 Wells Fargo Plaza
7900 Xerxes Ave. S.
Bloomington, MN 55431
(Remainder of Page Intentionally Left Blank)
Dated: , 2005 LINO LAKES ECONOMIC DEVELOPMENT
AUTHORITY, a public body corporate and politic
under the laws of Minnesota
STATE OF MINNESOTA
) SS.
COUNTY OF ANOKA
By
Its President
By
Its Executive Director
The foregoing instrument was acknowledged before me this day of , 2005 by
and , the President and Executive Director of the Lino Lakes
Economic Development Authority, on behalf of the Authority.
[Separate Signature Page to Approval of Assignment and Release of Obligations Under Contract
For Private Development]
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Dated: , 2005 CITY OF LINO LAKES, MINNESOTA, a
municipal corporation under the laws of the State of
Minnesota.
By:
Its: Mayor
By:
Its: City Clerk
STATE OF MINNESOTA )
) ss
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before me this day of
2005, by , the and , the
of the City of Lino Lakes, Minnesota on behalf of said City.
Notary Public
[Separate Signature Page to Approval of Assignment and Release of Obligations Under Contract
For Private Development]
1787796v2
7/7/05 5
Dated: , 2005
STATE OF MINNESOTA
COUNTY OF ANOKA
The foregoing
Hartford Development,
) ss
HARTFORD DEVELOPMENT, INC.,
a Minnesota corporation
By:
Keith Gruebele
Its: Chief Financial Manager
instrument was acknowledged before me this day of
2005, by , the of
Inc, a Minnesota Corporation on behalf of said Corporation.
Notary Public
[Separate Signature Page to Approval of Assignment and Release of Obligations Under Contract
For Private Development]
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Dated: , 2005 GCI BUILDERS, INC.,
a Minnesota corporation
By:
Its:
STATE OF )
) ss
COUNTY OF )
The foregoing instrument was acknowledged before me this day of , 2005,
by , the of GCI Builders, Inc, a Minnesota
corporation on behalf of said corporation.
Notary Public
[Separate Signature Page to Approval of Assignment and Release of Obligations Under Contract
For Private Development]
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