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HomeMy WebLinkAboutResolution 99-EDA118 . . . RESOLUTION NO. 99-EDA-118 CITY OF MOUNDS VIEW COUNTY OF RAMSEY STATE OF MINNESOTA A RESOLUTION APPROVING A REVISION TO THE PURCHASE AND REDEVELOPMENT AGREEMENT WITH VISTA CONSTRUCTION FOR THE PURCHASE OF PROPERTY LOCATED AT 6991 PLEASANT VIEW DRIVE It is hereby resolved by the Board of Commissioners (the "Board") of the Mounds View Economic Development Authority (the "Authority") as follows: 1. Recitals. (a) Pursuant to Minnesota Statutes, Sections 469.124 to 469.134 and 469.090 to 469.108. (collectively, the "Act"), the Authority (i) has undertaken a program to promote the development and redevelopment of certain land within the City of Mounds View and in this connection is engaged in carrying out the Mounds View Economic Development Project (the "Project") within the City; (ii) has approved a Project Plan for the Project; and (iii) has approved and adopted a Housing Replacement Program under and as an aspect of the project plan. . (b) The redevelopment of property within the project is a stated objective of the Project Plan and the Housing Replacement Program. (c) The Housing Replacement Program's objectives include replacing lower-value housing on scattered sites throughout the City with larger, new and higher value housing designed for families, the elimination of blighting influences and the increase of available quality housing for families within the City. 2. The Board authorized in EDA Resolution 99-EDA-116 the execution of a Purchase and Redevelopment Agreement (the "Agreement") with Vista Construction (the "Developer") on August 9, 1999. 3. The Board, at the request of the Developer, hereby authorizes revisions to Section 7.5 of the Agreement as shown on the attached Exhibit 1. 4. The Board hereby determines that the Authority's execution of the revised Agreement and subsequent sale and redevelopment of the Property would be in furtherance of the Project Plan and hereby approves and authorizes said actions, including the execution of the revised Agreement by the officers of the Authority in their discretion and at such time, ifany, as they may deem appropriate. 5. Upon execution and delivery of the revised Agreement, the officers and employees of the Authority (including members of the City staff, acting in their capacity as staff to the Authority as well) are hereby authorized and directed to take or cause to be taken such actions as may be appropriate or necessary on behalf of the Authority to implement the Agreement, including the sale and redevelopment of the Property, per the provisions set forth in the Agreement. 6. The Board hereby determines that the execution and performance of the revised Agreement will help realize the public purpose of the Act and are in furtherance of the Project Plan. . . . EDA Resolution No. 99-EDA-118 Page 2 of2 Adopted by the Board of Commissioners of the Mounds View Economic Development Authority on September 27, 1999. ATTES~:r:-~ .. !lt4/ ~-/ Michael Ulrich, Acting Executive Director /,..---'-j ("-(/) 4-/'/- . .. -I.. .~ __-I . tt .' ,1/ /,,---);,- <..... " tk:1 .,_'(...00/'00. Dan Coughlin, Presi9.ent . . . Exhibit 1. Previously approved Section 7.5: 7.5. Prior to commencement of construction of the Minimum Improvements, the Developer agrees to furnish to the Authority a performance bond, certified check, certificate of deposit, irrevocable letter of credit, or cash escrow in the amount of 100% of the Minimum Improvements (the "Financial Guarantee"). The value of the Minimum Improvements is $181,250. Upon a breach by the Developer of this Agreement, and in addition to and notwithstanding any other remedy the Authority has under this Agreement or otherwise, the Authority may declare the Developer to be in default under this Agreement and, upon failure of the Developer to cure the default within 30 days of written notice, may demand the Financial Guarantee be paid over to the Authority. From the proceeds of the Financial Guarantee, the Authority shall be reimbursed for any attorneys' fees, engineering fees or other technical, administrative or professional assistance, and the remainder thereof shall be used by the Authority to complete the Minimum Improvements. The Developer shall be liable to the Authority in the event and to the extent that the Financial Guarantee is inadequate to reimburse the Authority for its costs and pay for the completion of the Minimum Improvements. Revised Section 7.5: 7.5. Prior to construction of thc Minimum Improvcmcnts, thc Dcveloper agrees to furnish to the Authority one of the following: (a) a performance bond, certified check, certificate of deposit, irrevocable lettcr of credit, or cash escrow in the amount of 100% of thc Minimum Improvements (the "Financial Guarantee," i.e., $181,250 in this instance) or (b) adequatc 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). Upon a breach by the Developer of this Agreement, and in addition to and notwithstanding any other remedy the Authority has under this Agreement or otherwise, the Authority may declare the Developer to be in default under this Agreement and, upon failure of the Developer to cure the default within 30 days of written notice, may demand that the Financial Guarantee, if any, be paid over to the Authority. From the proceeds of any such financial Guarantee, the Authority shall be reimbursed for any attorney's fees, engineering fees or other technical, administrative or professional assistance, and the remainder thercof shall be used by the Authority to complete the Minimum Improvements. Whether or not the Developer furnishes a financial Guarantee, the Developer shall be liable to the Authority for any costs that the Authority incurs in the event of a breach of this Agreement by the Developer, including but not limited to the cost of completing the Minimum Improvements.