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HomeMy WebLinkAbout2002-018 Council ResolutionCITY OF LINO LAKES RESOLUTION NO. 02-18 RESOLUTION APPROVING A PRELIMINARY DEVELOPMENT AGREEMENT FOR THE VILLAGE PROJECT WHEREAS, The City has developed a Village Master Plan for the southeast quadrant of the I-35W/Lake Drive interchange that envisions mixed-use housing, commercial, retail, civic and recreational uses, and WHEREAS, The City is seeking development proposals to implement the Village Master Plan, and WHEREAS, The Beard Group, Inc., a Hopkins based real estate development company, has requested the City grant the company an exclusive period of ninety (90) days to determine the economic feasibility of the Village Master Plan; NOW, THEREFORE, BE IT RESOLVED, the Lino Lakes City Council hereby approves a 90 -day exclusive period under the terms of the Preliminary Development Agreement, attached hereto as Attachment A, in which the City agrees it will not consider other developers or development proposals for the city -owned portion of the Village project. Adopted by the Lino Lakes City Council this 11th day of March, 2002 John Berg �n 1Gla or , Y ATTEST: Ann Blair, Ci J Clerk Resolution No. 02-18 Councilmember Carlson introduced Resolution No. 02-18 and moved its adoption. Resolution No. 02-18, Approving a Preliminary Development Agreement for the Village Project. The motion for adoption of the foregoing resolution was duly seconded by Councilmember Dahl, and upon vote being taken thereon, the following voted in favor thereof: Reinert, Dahl, Bergeson, Carlson and O'Donnell. The following voted against same: None. Whereupon said resolution was declared passed and adopted. CERTIFICATION OF RESOLUTION NO. 02-18 STATE OF MINNESOTA ) COUNTY OF ANOKA ) CITY OF LINO LAKES ) I, the undersigned, being the duly qualified City Clerk of the City of Lino Lakes, Minnesota, do hereby certify that the attached document is a true copy of Resolution No. 02-18 with the original thereof on file in the City Clerk's office, and the same is a full, true and complete copy insofar as the same relates to: RESOLUTION NO. 02-18, APPROVING THE PRELIMINARY DEVELOPMENT AGREEMENT FOR THE VILLAGE PROJECT. Witness my hand as said City Clerk and the Corporate Seal of the City this 11th day of March, 2002. Ann J. Blair (SEAL) DRAFT FOR WORKSHOP PURPOSES ONLY PRELIMINARY DEVELOPMENT AGREEMENT Iw THIS AGREEMENT, made and entered into as of the '% day of March, 2002, by and between THE CITY OF LINO LAKES FOR THE CITY OF LINO LAKES, MINNESOTA, as Minnesota public body corporate and politic, the ("City"), whose address is 600 Town Center Parkway, Lino Lakes, MN 55014, and THE BEARD GROUP, INC. a Minnesota corporation ("Developer") whose address is 10 -11th Avenue South Hopkins, MN 55343. BACKGROUND The purpose of this Agreement is to set forth the understanding between the parties with respect to the Development of portions of the area contained in the Lino Lakes Center Master Plan, The Village, dated October 26, 2000 (a copy of which is to be attached hereto as Exhibit A). The portions of the Development area, which are included in this Agreement, are described in Section 2 below. BASIC TERMS AND CONDITIONS The following is a list of the terms and conditions under which the Developer will proceed on an exclusive basis for the term of this agreement to determine the economic feasibility of the Village Master Plan. If the Developer determines that the Village Master Plan is economically feasible a definitive Development Agreement for the Project intended to define the responsibilities and roles of the respective participants regarding the proposed Development of the Project would then need to be negotiated between the City and the Developer 1. Term. The term of this Agreement will be for a period of ninety days from the date listed above. Said exclusive period shall continue, unless earlier terminated as provided herein, or until such later date as the parties may mutually agree. 2. Development Property. The Development Property known as the Village is located in the SE quadrant of Lake Drive and Interstate 35W. The Village is bounded on the north by I -35W, on the west by Lake Drive, on the south by Town Center Parkway, and on the east by Anoka County Rice Creek Regional Park. The Site equals 42 (plus/minus) acres of land together with all improvements and structures located on the land and easements and rights benefiting or appurtenant to the land. The exact dimensions and square footage of the project shall be determined by survey. The parties agree that the Site may be enlarged to include other lands at the mutual agreement of the parties. 3. Undertaking and Exclusive Rights. In consideration of the time, effort and expenses to be incurred by Developer in pursuing the undertakings set forth herein and in further consideration of the amount of $1.00 paid to the City, the receipt of which is hereby acknowledged, the City hereby agrees that for the term of this agreement it will not: (i.)solicit requests from any third party for development of the Village Master Plan, (ii.) provide or enter into an agreement for provision of financial assistance to any third party in connection with any proposed development of the Village Master Plan; and (iii.) condemn or agree to proceed with the condemnation of any property within the Site. During such period the Developer shall have the exclusive right to work with the City in determining the economic feasibility of the Village Master Plan pursuant to Section 8, Step 2 (b) of this Agreement. The above notwithstanding the city recognizes that any development proposals or applications on property not owned or controlled by the City do not extend to this agreement and will be accepted. 4. The Project. The project will consist of the Development of the properties set forth in Exhibit B and will include, but not be limited to, the development of new office, retail, and hotel sites, and the relocation of certain existing businesses within the Site, the development of housing units, which may include, the development of rental multi -family housing (condominiums/townhomes/apartments) and/or the development of owner -occupied single family/multi family home sites, the relocation and redesign of several streets, the development of public spaces: branch, library, tech services, conference and meeting facilities. The Village Master Plan is intended to serve as part of the system 1 of pedestrian networks to link neighborhoods to each other and connect them to parks, and the regional trail systems. 5. Public Assistance. In order to achieve the foregoing multi -use Development, it is anticipated that the definitive Development Agreement will contain provisions addressing a variety of forms of public assistance that may be necessary in order to accomplish the Development. Although no commitment is presently being made to provide any form of public assistance, examples of public assistance which may be ultimately be agreed upon may include, but are not limited to, the following: a. Site Assembly & Land Write -Down. The City may consider acquisition of some or all of the Development Property based upon terms and conditions contained in the Development contract. Acquisition may be through negotiated purchase, or, after a good faith effort to acquire the site, condemnation or a combination. Acquired properties may be conveyed to the Developer at a write-down, subject to all of the applicable provisions of law. The write-down price may take into consideration any pending or levied special assessments. The difference between the City's assembly costs and the sale price may be paid to the Developer out of Project tax increment. b. Grant. The City, as well as other outside sources such as the Metropolitan Council may be requested to provide grants and/or loans in the form of cash to permit the Developer to redevelop the Project. The City will cooperate with and support the Developer in any efforts to secure grants or similar funding. The use of any grant(s) and the amount of such grant(s) will not be known until the exact scope and anticipated use of the Project are finally determined and established, and the availability of certain types of grants, and a definitive budget for the Development Project are established. The parties will need to agree on how to address these matters prior to execution of any Development contract. c. Tax Increment Financing. The City, acting as the Economic Development Authority, may be asked to establish a tax increment financing district to support the Development Project; and agrees to give due consideration to any such request. d. Debt. The City may be asked to provide certain loans to the Developer to support the Development Project. Any agreement by the City to make such loans will be subject to the absolute discretion of the City and will also depend upon a clearly available source of funding, and appropriate security. 6. Developer's Proposed Use, Minimum Improvements. The minimum improvements will be made pursuant to plans, which are acceptable to and approved by the City as part of the final Development agreement. The minimum improvements will be substantially consistent with the Lino Lakes Town Center Design & Development Guidelines (Draft dated 10/9/00), incorporated herein by reference. 7. Ownership. It is expected that the final Development proposal will provide that the retail, office, and the rental housing portion of the Project (will be owned by the Developer or its assignees, and that certain condominiums, townhomes, or single family home sites will be sold by the Developer or its assignee to others. 8. Contemplated Development Schedule. The contemplated Development Schedule is as follows: (Schedule assumes that portions may be constructed in phases and various steps within the Development schedule may overlap or run concurrent) STATUS START -END STEP 1 Public Process & Support For Village Project Complete 10/00 STEP 2 Community Vision Incomplete 3/1/02-5/30/02 Imagery 2 Economic Feasibility List of Community Work STEP 3 Developer's Concept Plan Preliminary Agreement Gather Information Prepare Concept Plan STEP 4 Public Review of Developer's Plan Public Review of Plan Concept Plan Approval STEP 5 Developer's Final Plan Submit Schematic Plans Contract for Private Development Approve Development Schedule STEP 6 Construction Begins Closing Date Construction Start Date First Retail Tenant Move In Date First Residential Tenant Move In Date: To be completed by Developer To be completed by Developer Not Initiated 5/31/02-9/1/02 Not Initiated 9/02-11/02 Not Initiated 11/02-2/03 Not Initiated 6/03-7/04 9. Final Report. Prior to the expiration of the 90 -day exclusive period the Developer will deliver to the City the results of its economic feasibility study. The results will be reported to the City in the form attached as Exhibit C 10. Additional City Considerations or Community Work. It is expected that the Development Contract will address the following items which the parties acknowledge may be material to the Project: a. creation of a tax increment financing district, and determination of the portion of tax increment which will be made available to the Developer b. the acquisition of all or part of the Development Property by direct purchase or condemnation, on such terms and conditions acceptable to the City and as determined by the City in its sole and absolute discretion; c. Phase I and, if requested, Phase II environmental assessment. d. wetland delineation reports e. remediation of any environmental condition on the Property, prior to conveyance f. zoning modifications g. title commitment(s), for the Development Property h. soil test results i. ALTA 1997 survey, including all Table A optional requirements Nos. 1 through 16 inclusive 1. reciprocal operating and easement agreements to provide the necessary access to permit construction of the Project, and to coordinate and facilitate vehicular and pedestrian ingress and egress to the Project and the joint use, maintenance and repair of all Project common areas, utilities and parking lots k. streetscape improvements depicted in the Lino Lakes Boulevard Framework Plan on the Project's streets. 3 written. I. infrastructure (including but not limited to utilities, water, sanitary and storm sewer) necessary to support the Project. Affiliated Parties. The City acknowledges that the Developer may assign any or all of its duties hereunder to Dominium Development & Acquisition, Ryland Homes or another entity, which is controlled by William H. Beard and Paul Gamst. The City also acknowledges that William H. Beard and Paul Gamst are both owners of the Developer and are licensed real estate brokers in the State of Minnesota. The Beard Group, Inc. is a licensed real estate brokerage firm. Said entity or individuals may be entitled to real estate commissions and/or development fees arising out of the foregoing transactions. 11. Termination. This agreement may be terminated by the City upon the giving of written notice to the Developer that the Developer is not diligently pursing the Development of the portions of the property terminated. Developer shall have a reasonable time, but in no event less than 30 days to affect a cure of such default, or to demonstrate that it is diligently pursuing such cure. 12. Legislative Judgment. Developer understands that many of the actions which the City may be called upon to take require its reasonable discretion, and in some instances, its legislative judgment. Such actions may only be made following established procedures, and the City cannot agree, in advance, to any specific decision in such matters. 13. Notices. All communications shall be directed to the Developer at the address listed above with copies to: Attorney for the Developer: The Beard Group, Inc. 10 -11th Avenue South Hopkins, MN 55343 Attn: Bill Beard Telephone (952) 930.0630 Facsimile (952) 930.0631 Frank B. Bennett, Esquire Lindquist & Vennum, P.L.L.P. 4200 IDS Center 80 South Eighth Street Minneapolis, MN 55402 Telephone: (612) 371-3931 Facsimile: (612) 371-3207 Ali communications shall be directed to the City at the address listed above with -a copy to: Attorney for theCity: William Hawkins William Hawkins & Associates 2140 4th Ave. No. Anoka, MN 55303 Telephone: (763)427-8877 IN TESTIMONY WHEREOF, the parties hereto have set their hands as of the date and year first above 4 THE BEARD GROUP, INC. William H. Beard, President CITY OF LINO LAKES By: Its ✓C CY" • 1 Exhibits: "A" Lino Lakes Lake Drive/35W Development, dated October 26, 2000 "B" The Development Properties: Property List "B-1" The Development Properties: Legal Descriptions "C" Economic Feasibility Report 5 .11 ‘..,1 1.1 THE VILLAGE Preliminary Site Plan 16,62000 ATTACHMENT = PHASE]: HOUSING 85-95 units RENTAL APARTMENTS morkered 10 55 yrs and older 3 &4 stay w/ underground parking CommERctAt/REtAll, YMCA DAYCARE RETAIL OFFICE PHASE II: HOUSING RENTAL APARTMENTS 3 & 4 story yr/ underground porkIng FOR SALE TOWNHOMES LIVE/WORK 10 units 2-1/2 story w/ fuck -under parking ROWHOUSES 105 units 2 -stay w/ luck -under porkIng 118,000 st 50,000 sf 5,000 sf 48,000 sf 15,000 sf 280 units 175 unffs 115 unlit COMMERCIAL/REIM, 116,0005f BUSINESS CENTER 6,000 sf LIBRARY BRANCH, TECH SERVICES CONFERENCE & MEETING FACILITES RETAIL OFFICE HOTEL 150 rooms, WI restaurant STUDIOWORKS 25,000 st 10,000 sf 75,000 st Melert UMOAM 0.11.1• RMF ENTITIES LLC/ c ounfryHorne aullders, Inc. DUFFY DEVELOPMENTCO. Exhibit Village of Lino Lakes Economic Feasibility Study Programmatic Information SF/Units Value/Each Totals Office 25,000 $0 $0 Retail 78,000 $0 $0 Apartments -rental 175 $0 50 Townhomes-rental - 50 $0 Senior Apartments -rental 95 $0 $0 Townhomes-for sale 115 $0 50 YMCA 50,000 50 $0 Library Branch 6,000 50 50 Hotel: Conference & Mtg, 75,000 $0 50 Notes Value Total Development $0 Total estimated assessed value for TIF purposes Costs Current Land $0 Relocation $0 Streetscape $0 Soil Corrections $0 Environmental $0 Land Write -Down: $0 Apartments $0 Senior Housing $0 Townhomes $0 YMCA $0 Library $0 Retail $0 Office $0 Hotel $0 Infrastructure $0 Additional Costs $0 Total $0 Sources Current TIF Income 50 Proceeds from Land Sales: $0 Apartments $0 Senior Housing $0 Townhomes so YMCA $0 Library $0 Retail $0 Office 50 Hotel 50 City Bond for Infrastructure $0 City Bond for Land Under roads 50 Grant: Met Council $0 Grant: Others $0 Assessments to Commercial 50 Total Sources 50 Gap: (need)/surplus $0 Acqusgton of all parcels (public or private) Relocation of existing residents or businesses Sewer (sanitary & storm), water, streets, utttltles Total Project: (PubIlc & Private) Total Sources: (Public & Private) Cash Model: Gap that will need to be flnancedfbrldged 11/11 'd M1'011 wd175:1 zaa 'Sl'ga�