HomeMy WebLinkAboutreassignment of Inwood Development ContractMAYOR AND COUNCIL COMMUNICATION
DATE: 11/4/15
CONSENT
ITEM #: 11
AGENDA ITEM: Reassignment of Inwood development contract
SUBMITTED BY: Clark Schroeder
THROUGH: Clark Schroeder
REVIEWED BY: Dave Snyder
SUGGESTED ORDER OF BUSINESS:
- Introduction of Item .................................................................................................... Staff - Report/Presentation .................................................................................................... Staff - Questions from Council to Staff ............................................................ Mayor Facilitates - Public Input, if Appropriate ................................................................... Mayor Facilitates - Call for Motion .............................................................................. Mayor & City Council - Discussion ..................................................................................... Mayor & City Council - Action on Motion .................................................................................. Mayor Facilitates
PUBLIC POLICY STATEMENT: NO POLICY BEING DECIDED
SUMMARY AND ACTION REQUESTED: Hans Hagen Homes, Inc., a Minnesota corporation
(“Hagen”) is the developer under that certain Development Contract dated June 9, 2015 by and
between the City of Lake Elmo, a Minnesota municipal corporation (the “City”) and Hagen (the
“Public Sewer and Water Contract”), and that certain Development Contract by and between the
City and Hagen (the “Site Grading Contract”, and collectively with the Public Sewer and Water
Contract, the “Development Contracts”), both of which relate to the development of certain real
property located in the County of Washington, State of Minnesota, and as more particularly
described in the Development Contracts. Hagen is considering the transfer and sale of
substantially all of its assets (the “Asset Sale”), including its rights under the Development
Contracts, to M/I Homes of Minneapolis/St. Paul, LLC, a Delaware limited liability company
(“M/I”), which is an affiliate of M/I Homes, Inc., a public homebuilding company.
BACKGROUND AND STAFF REPORT:
With the reassignment there needs to be a determination of cash escrow that would transfer in this sale
from Hans Hagen to M/I homes. Due to the limited amount of time to prepare this document staff have
not completed the exact amount which will be left to transfer. This amount will be filled in after
consulting with Planning, Finance, and Engineering.
RECOMMENDATION:
Staff recommends the City Council … take the following action / with the following motion:
“Move to reassign development contracts from Hans Hagen Homes to M/L Homes, LLC.”
ATTACHMENT(S): Reassignment contract and Letter from Hans Hagen Home