Agenda Packets - 1999/09/27 - Laserfiche WebLink

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Item No. Staff Report No. Meeting Date: September 27, 1999 Type of Business: EDA Consent City of Mounds View Staff Report To: Honorable Mayor & City Council From: James Ericson, Planning Associate Item Title/Subject: EDA Authorization to modify the Purchase and Redevelopment Agreement with Vista Construction for 6991 Pleasant View Drive. Date of Report: September 23, 1999 Background: This item was before the Council for discussion on September 20, 1999. It was reported that Vista Construction had requested a revision to the approved Purchase and Redevelopment Agreement for 6991 Pleasant View Drive so as to not require a financial guarantee for the agreed- upon minimum improvements. Vista has submitted documents provided by their lenders indicating sufficient financing to complete the improvements. The Council, after discussing this with Staff, consented to a revision to Section 7.5 of the agreement which would remove the financial guarantee requirement from the developer. Discussion: Attached to the EDA resolution is an exhibit which shows the language of Section 7.5 as it was originally drafted and the revised language, which instead of deleting the section in its entirety, modfies it such that the financial guarantee becomes optional, contingent upon: "adequate evidence of financing in an amount equivalent to the difference between the value of the Minimum Improvements ($181,250) and the Purchase Price of the Property ($47, 250). The balance of this section has changed as well, but the intent--what happens in the event of a breach of agreement--remains the same, offering the same protection to the City as before. Recommendation: Approve EDA Resolution 99-EDA-118, a resolution authorizing the revision of the Purchase and Redevelopment Agreement with Vista Construction for 6991 Pleasant View Drive. James Ericson, Planning Associate C:\OF'N'ICE\WPWIN\WPDOCS\JERICSON\EDA.RPT