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HomeMy WebLinkAbout09-26-1997i i ECONOMIC DEVELOPMENT COMMISSION AGENDA FRIDAY, SEPTEMBER 26, 1997 7:30 A.M. MOUNDS VIEW CITY HALL COUNCIL CHAMBERS 1. CALL TO ORDER P.M. 2. ROLL CALL (Present = P, Absent = A) Carlson Schmidt Goff Welsch Nelson McCarty (EDA Liaison) Sjoberg Quick (EDA Alternate Liaison) Bennett (Staff) 3. APPROVE EDC MINUTES August 28, 1997 Action: Motion Second Vote 4. 5PECIAL BUSINESS IVo Special Business 5. EDC BUSINESS A. Consideration of Offer to Purchase 2625 Highway 10 for Retail Use Action: Motion Second Vote Comments: ���_.. __�� ,�-- -�- _ �_,� . . _ , ..=� : � ,:_ — .. _ __ __ ____ _ . � �. .. � _ _ .�z.r_._ • � B. Introduction of Upcoming Requests for Tax Increment Assistance Action: Motion Second Vote Comments: C. Update on Phase II, Mounds View Community Center Action: Motion Second Vote Comments: 6. Report of Commissianers, Staff and EDA Liaison 7. ADJOURN Next Meeting October 24, 1997 � Minutes of the Economic Development Commission City of Mounds View Rarnsey County, Minnesota Itegular Meeting August 28, 1997 City of Mounds View, Council Charnbers 2401 Highway 10, Mounds View, MN 55112 1. Call to Order: The meeting was called to order at 7:35 a.m. by Chairperson, Dan Nelson. 2. Roll Call: Members Cindy Carlson, Dan Nelson, Ron Schmidt, Brian Sjoberg and Delane Welsch were present. Du. of Economic Development Cathy Bennett and Building Inspector Rick Jarson were present. Member Rosemary Goff, EDA Liaison Duane McCarty and Alternate Liaison Gary �uick were absent 3. Approval Of Minutes: Motion/Second: Welsch/Carlson moved approval of Minutes from July 24, 1997 as amended by Carlson. Motion Carried 5 ayes 0 nays 4. Special Business New Brighton/Mounds View Area Chambei� of Commerce Executive Director Carol Frey gave an overview of the Chamber mission, membership benefits and programs. Ms. Frey passed out materials included the Newsletter, Membership Directory and Marketing Brochure. The current membership includes approximately 140 members. Carol attends the New Brighton EDC meetings and would like to be a more regular guest at the Mounds View EDC meetings. Chair Dan Nelson gave an open invitation to Carol to attend the meetings as they are a public forum. Ms. I'rey encouraged the business representatives on the EDC to join as chamber members. She noted that the chamber is an excellent venue to learn business issues and keep in close contact with the businesses. 5. EDC BUSINESS A. Consideration of Application for Marketin�' Funds throu�h the New Brie'hton/Mounds View Area Chamber of Commerce Director Bennett passed out a draft of the application for charitable gaming funds through the New Brighton/Mounds View Chamber of Commerce. She explained that the application was for funds in support of the production of the Mounds View Community Profile and an Advertising Supplement to highlight the Mounds View business who was the recipient of the Business of the Year award. The City has budgeted approximately $1,500 for the production of the brochure. The application would be for $2,000 -$3,000 to enhance the brochure and increase the quantity printec�. � �r _ _ . ___ - _ � Chau Dan Nelson aslced how the brochure was distributed and suggested that we use the brochure more proactively. Bennett explained that the brochure is handed out to all new residents and businesses and is used in the material for attracting new companies to the area. By increasing the quantity Mounds View will be able to give the brochure to the chamber to mail out to businesses that contact them. Nelson suggested that we increase the amount printed to be able to mail to all Mounds View businesses. Carlson noted that the brochure could be beneficial to businesses in attracting workers and that we should have enough to assist the businesses in attracting a quality workforce. Nelson suggested that if we do not get the additional funds that the EDA support increasing the budget to allow for the additional quantity to be printed. Ms. Frey, Chamber Executive Director noted that the City may want to use members for printing and designing. Bennett mentioned that they will be using a local printer Action Press. Motion/Second: Nelson/Welsch moved to recommend applying for Charitable Gaming Funds for 3,500 copies of the Community Profile and Advertising Supplement and to encourage the EDA to increase funding for the Profile if needed. Motion Carried 5 ayes 0 nays B. Discussion of Establishing a Loan Pro�'ram for the Improvement of Multi-Familv and Manufactured Homes Bennett explained that City staff is requesting that the EDC review possible loan programs, using TIF, for the rehab of Manufactured Home Additions and Apartments, Triplexes and Duplexes. Building Inspector Rick Jarson gave a brief overview of the current situation in Manufactured Homes Parks with faulty and illegal construction of additions. Carlson talked to a Chamber member who owns a Manufactured Home Park in New Brighton and in a member of the Minnesota Manufactured Home Association. She mentioned that trying to assist in the rehab of older mfg homes is very rislcy. Recently, some lenders have liberalized the financing criteria for mfg home additions and/or purchases and the majority of these have gone into foreclosure. Carlson suggested that staff try and develop some criteria for a loan in conjunction with the park owner\manager and that they should buy into and support the City in its efforts to improve the living conditions in the park. Schmidt felt that the loan should not be forgivable and that any work should be supervised by a licensed contractor. Nelson suggested that the Planning Commission review the possibility of revising our code to allow construction of additions following the UBC. Motion/Second: Carlson/Nelson moved to direct staff to draft a loan program wit�. the assistance of Western Bank and Chamber Member Bev Aplikowski to bring back to the commission for review. Motion Carried 5 ayes 0 nays Bennett gave an overview of the change in the tax law that reduces the multi-family tax rate and hopes that this savings will encourage property owners to make improvements. As an additional incentive the City may consider developing a loan program that would be an additional incentive to provide improvements to property. Carlson noted that there are several City programs out there and that we should research other �programs prior to developing our own. Carlson also mentioned that both of these ideas are expensive proposals because ,you must deal with the servicing of the loan, possible foreclosure costs, collection 2 . � �. __ costs and that the EDC needs to take into consideration what the actual benefit the programs will be in relation to the costs. Motion/Second: Carlson/Welsch moved to direct staff to research other City programs and bring back information to the EDC for review. Motion Carried 5 ayes 0 nays C. Consideration of Assi�nine' an EDC Member to participate in the Development of the Desitn Theme for Highwav 10 Corridor Bennett explained that staff solicited proposals from over 15 consulting firms to assist in developing design themes for Highway 10. Of the 8 proposals that were received 4 were interviewed by Planning Commission members Jean Miller and Bobbie Brooks. Two firms were chosen to reinterview by a larger group that includes a member of the Council and EDC. These firms were SRF Consulting and Hoisington Koegler Group. The Council delayed taking action on this item until decisions could be made with regards to the ring road concept. If Council decides to proceed with the ring road concept a task force will be formed to work with one of these firms in developing a design theme. Staff is requesting an EDC member to participate in this process. Motion/Second: Nelson/Sjoberg inoved to nominate member Ron Schmidt with member Delane Welsch as alternate to represent the interests of the EDC on the task force when it is formed. Motion Carried 5 ayes 0 nays 6. Reports From Chair, Commissioners and Staff: Commissioner Welsch mentioned that he will be unable to attend the meetings on Thursday morning since he teaches a class on Tuesday and Thursday mornings thioughout November. Bennett mentioned that the Commission could change the meeting to evenings or another morning to accommodate Welsch. Nelson suggested that another morning be chosen. Carlson said that mornings are much easier since she has many other evening obligations. Sjoberg and Schmidt agreed. Motion/Second: Nelson/Schinidt moved to move the �DC meetings to Friday inornings at 7:30 a.m. through November. Motion Carried 5 ayes 0 nays 7. Adjournment There being no further business before the Commission, this meeting of the Economic Development Commission adjourned at 8:45 a.m. R pectfully S mitted, j _c'- �, ; %�J`f "��. / ~.`i-;i,-!'�i!.j. .. �__ '. �t, -; Director ,6f conomic Development Staff Memo To: Economic Development Commission Members From: Cathy Bennett, Director of Economic Development Date: September 17, 1997 SubjeCt: Consideration of Offer to Purchase 2625 Highway 10 for Retail Use (5.A.) At a previous meeting, the EDC reviewed a proposal for 16 Townhomes and the rehabilitation of Red Oak Apartments known as Silver Lake Commons. This proposal included the sale of EDA owned land located at 2625 Highway 10. Since that meeting the Silver Lake Commons proposal has changed and no longer includes the EDA owned land or the request for Tax Increment Financing assistance. We now have an offer to purchase the land for a retail use from Told Development Company. They are offering to purchase the property for $125,000 cash with $5,000 of earnest money. A purchase agreement is attached for your review. This proposal will go before the EDA at the work session on October 6th with formal action on October 13th. Told Development is unable to name the retail user at this time but has indicated that this use is not associated with gasoline, automotive, fast food or restaurant uses. The proposal includes the assembly of 3-4 single family homes on the northeast side of Eastwood Drive to enable access to the site off County Road I. (See preliminary site plan). Told is proposing purchasing more than enough acreage for this user to create an adequate buffer to the residential neighborhood. In addition they are suggesting the possibility of creating a cul-de-sac to lessen the traffic impact on the neighborhood. The proposal would require a rezoning, revision to the Comprehensive Plan, major subdivision, vacation of a portion of Eastwood Road and Development Review with adequate community input. The project would generate an estimated market value of $2 million and employ 30 people. It is possible that a small medical clinic could also be build on the site but that is speculative at this time. The building would be constructed with brick\block combination of materials and would be a flat roof with a decorative facade. Please take a moment to review the purchase agreement. I would like to generate a list of comments and suggestions for the EDA to consider in reviewing this proposa) next month. Bob Cunningham of Told Development will be at the meeting to review the proposal and answer any questions. C-<�-" ` FILE No. Sb0 09i18 '97 16:49 ID�TOLD DE�ELOP�1ENT b12 42G 7574 PAGE 2 • ' ' U .\ � • . i THIS AGREEMENT is mad� and entered into as of chis day of September, 1997, by and bet�uveen 7'HE CITY O?F MOUNDS Vi�W ECONOMIC DEVELOPM�NT AUTHORITY (hereinafcer "S�Iler") and MERIDIAIY FROPERTY�S REAL ESTATE DEVEY,O.PMENT LIMTTED PARTNERSHIP, a Minnesota limited partnership (d/bla TOI,D Development Company), its successors, assigns or designees (hereinaftcr "Buyer"). X. SALE AND PU C�t HA�E. Seller agrees to sell eo Buyer, and Buycr agrees to purchase from Seller, certain re�l property located a� County Road I and Highw�y 10, legally dESCribed on Exhibit "A" ��lached hereto, Ci�y of Mounds View, State of MinnesoCa (the "Property") as de�icted on Exhibit "B" attached hereto consisting of approximately 1.8 acres, as determined by survey. 2, . The Purchase Price of said ProperCy shall be One Hundred Twenty-fi�e Thousand and NO/100 Dollars (�125,00�.00) per square fooc of property nec of roadways, right-of-ways and easements therefore, based upon the actual square iootage of che Property as determined by the survey, payable as follows: 2.1 'ren Thousand and OQ/100 Dollars ($10,000.00) "�arnest Money" in the form of a sight draft letter of credit, �o be deposited with Old Republic Title Insur�nce Company within five (5) business d�ys after accepcance o'f this Agreement by Seller. The sole duties of Escrow Agent shall be those described herein, and escrow agent shall be under no obligation to determinc wheCher the other parties hereto are complying with any requirements of Iaw c>r Che terms and conditions of any other a�reement among said partics, Escrovu Agent may conclusively rely upon �nd shall be proteet�d in ac�ing upon any notice, consent, order or other document believed by i� ca be genuine and to ha�ve been signed or presented by lhe proper party or parkies. Escrow Agent shall have no duty or iiability �o verify any such notice, consent, order or other documenC, and it sole responsibiiity shali be to act as expressly set forth in this .Agreement. Escro�v Agent shall be under no obligation to insticute or defend any ac�ion, suit or proceeding in connection rv�ith this Agrcement unless first indemnified to ic satisfaction. Escrow Agent may consult with respect to any question arising un�er this Agreement and shall not be liable for any action taken or omiCCed in good faith upon �dvice of such counsel. A�y inCerest on said Earnest Mone�, if convcrted to cash, shall be for benefib ot Buyer. 2.2 At Closing, Buyer shall pay in cash or certified funds or by wire eransfer of immediately a�vailablc funds khe en�ire Purchase Price, less prorations or credits (as defined in Seccion 7). 3. SURVEY: TrTLE EXAMINATI�N. Buyer will obtain a survey of the �roperty which (a) sha11 be cerfified as of a current date in favor of Buyer �nd Old R.epublte Tikle Insurance Company, in acc�rdance with xhe "Minimum 5tandard D�cail Requirem�nts for Land Title Surveys", Class A Survey 1992, joinCly established by the American Congress on Surveying and Mapping and The American Land Title Associatipn, (h) shall be prepared by a regiskered land surveyor for the State of Ivlinnesola with his or her seal affixed and dated, {c) shall contain a legal description identical �o ehat set fort� in �h� �i�lg in������ �Qmm�tmgn� ���F����� �g�QW, a�� ��) shall otherwise shaw matters �nd contain a certification satisf�ctory co Buyer in its sole discretion_ Seller agrees to provide a co�y af any exis�ing FILE No. 860 09i18 '97 16�49 ID�TOLD DE�ELOP�ENT 612 420 7574 PAGE 3 survey of thc Property to Buyer as soon as possible after execu�ion of this agreement. [n thc evcne Buyer closes on the purchase of the Property, Buyer sh$il ree�iVe a credit against the Purchase Price for the cost of said survey. Buyer will, v�rithin len (10) days of receipt of a proper I�gal descriptian from.Seller, for the cost af the title insurance policy as described above, obtain a current commitrnent far � policy of title insuc�nce (ALTA-B, 1970), togeCher with Copies of all ikems r�ferenced therein, issued b� Old RepubliC Title Insurarice Company and showing marketable title vested in Seller, subject only to such �ncurrtbrances as �uyer may accept in its sole discretion. Buyer wilt plaee its application for such commitment with thc main office af Uld Republic Ticle Insurance Company at 400 Second Avenue South, Minneapolis, Minnesota 55401, AtCenCion: Karen Butler, (612)371-1111. Sel)er shall providE to Buyer a copy of any policy of title insurance for the Property which Seller may have, Such commitment will include (a) proper searches cc�vering bankruptcies, State an.d Federal judgements and liens, taxes and special assessments, and (b) any endorsemenCs required by Buyer, together with c4pies of each and every document referred to in sueh commitmcnt. Buyer shall be allowed thirty (30) da�s afCer receipt of last to be received of said survey and said commitment for examination of said title and making of an� objections thereto, said objections to be madc in writing or deemed to be wai�ved. In Che event Buyer clases or� the purch�s� of the Property, Buyer shall receive a credit against the Purchase Price. If any title objeceions are so made, th� Seller shall �e allowed 60 days to make such title marketabte. Pending correction of title th� Closing shall be postponed, but upon correctian of citle and wi.thin 10 days after writt�n notice to Buyer, the parties shall perform this Agreement acG�rding cc� it� Cerms. At Clc>sing, said commitment shall be endorsed to update the effecti�e date thraugh the date of recording, to delete standard exceptions for mechanic's liens, survey and parties in possession and to shovv Buyer as fee owner of the Property. If said title is n�t marketable and is not made so r�vithin 60 days from the date of written objections thereto as abovc provided, Buyer, at its sole option, may by written �otice to Seller either (i) declare this Agreement null and void or (ii) mal:e such title corrections itself on or before 180 days fram the da�e of such wrilten objections and deduct its expenses in connec�ion Cherewith, including but not limited to attorneys' fees, from the Purchase Priee. In khe event Buyer fails to make such CiCle corrections within said 180-day period, this Agreement shall be null and void. If this Agrccment is made null and void by reasan of either SeIler's or Buyer's failure to make litle co�rections pursuant to �his Section 3, neith�r �arty shall be liable for damages hereunder to the c�thcr, and all earnest money cheretofore paid by Buyer shall be refunded. If title to the Property is found marketable or is so made within the above-described time periods, and if �he Buyer is in default pursuant to this Agreemenc and continues in default for a period of lU days, then in that ca4e Seller may Cerminate �his Agreemenk, and on such cermination, alI payments made upon this Agrcement shall be paid to Seller pursuant to Section 2, time being �f the essence hereof. -2- FILE No. 860 09i18 '9� 16�54 ID�TOLD DEVELOP�ENT 612 420 7574 PAGE 4 4. CONDITIONS PRE�.E]�F�T� In the event any of the conditions set forth in this Section 4 shall not have been fu1f111ed �n or before th� "Review Datc" as defined hereinafCer, Buyer, in its sole discretion, may terminaCe this Agreemenc by giving wri��en notice thereof to Seller on or before the Closing Date, specifying in such notice the condition which has not been fulfilled, and thereupon all earnest monies shal) be paid to Buyer. The fulfillmenl of the conditions of �his Article 4 are for Buyer's sole benefit, Buyer may, in its sole discretion, waive (conditianally or absolutely) the fulfillment of any one or more of the conditions, or any part thereof, specified herein, but only by giving written notice thereof to 5eller at. any time and from timc to kime on or before the Closing Dmte. Any failure of Buyer to provide such wri�een notice shall not be deemed a waiver of the fulfillment of any su�h condition, For purpc►ses hereof, khe Review Date �hall be one hundred eighty {180) days from �he date of this Agreement.. In the event Buyer is unable to satisfy the condi�ions set forth herein on or before the Review Date, Buyer, upon providing written notice to Seller on or before the Review Date, shall have the right to �xtend the Review Dat.e for tw� (2) separatc periods of ninety (90) days each, upon d�posit of a promissory no�e of $5,OOQ,00 as additional Earnest Money for each such extension {"Additiona{ Earnest Money"). Such Additional Earnest Mpney shall be appiicable co the pur�hase Price but refunclable only in Che event of a default of Seller. 4.1 Buyer shafl have been ablc to obtain all necessary governmental approvals and permils with regard ko all applicable environmental, construc:tion, zaning, plakking, signage, subdivision, lot split, D.O.T access and eurn lane agreements and other land use larr�s, ocdinances and regulations and codes for lhe construction and use of the property (and adjaccnt propert�) as Buyer intends. 4,2 Buyer shafl ha�ve been abi.e ta determine that al) necessary utilities, including, but not limited to, natural gas, s�nitary sewer, storm sewer and water, are located at the property line and are of adequate capaci�y co serve the development of the Propercy contemplated by the Buyer. 4.3 Buyer shall have k�een able to conduct such soil tests, environmental assessments �r other tests or investigations as are cansist�nt with its interest h�reunder, the results of which shall be acceptable to Buyer in its sole discretion_ a.4 Buyer shall havc beer� able co determinc the costs of the site for new conseruction and the feasibility of the proposed project based upon said costs and said ec�sts are acceptabl� to Buyer in its sole judgement. 4.S Buyer shall have been able to make ap�?lication co applicable gavernmenCal units and/or quasi-governmenCal entities and to obtain any and all governmental or quasi-governmenEal aid or subsidies necessary, in Buyer's sole judgement> for develo�ment of the Property in an economically feasible rnanner. 4.6 Buyer shall have been able to eriler inlo a net lease agrcement with an anchor tenant o�f its choice on kerms and conditions acceptable to Buyer in ics sole discretion. 4.7 Buyer shall ha�ve been able to obtain financing for the project on terms and conditions acceptable to Buyer in its sole discret.ion. -3- FILE No. 860 09i18 '9? 16:51 ID�TOLD DE�ELOP�1ENT 612 42Q 7574 PAGE 5 4.8 Buyer shall have entered inta binding purchase agreements with the owners of certain adjacent property and c:an simulcaneously close on the purchase of khe Proper�y and said adjacen& parcels. Sell�r shail cooperate with Buyer in accomplishing Che conditions preeedent contained in this Section 4, including buC not limited to Sell�r's providing or obtaining any relevant informatian, certifications or applica�ions, investigating the his�ory of the Prop��°ty, executing documenks, and appearing at hearings or otherwise participating in any regul.atory <�r governmental processes. Buy�r agrees to pro�vide copies �f all retevant information khat Buyer obtains ducing its inspection period other than information re�arding potential �enants and users of the Property or f.inancia! or proprietary information abouc Buyer. Seller shall provide copies of soil kests, compaction tests and any other enginecring r�ports applicable t� devel�pmenC on the Subjeck �roper�y. � ,::::► :�� • �:► ..5.1 Seller has n�t received (a) any written noCice from any state or local authority having jurisdiction ov�r the Property of any violation of any law, tegulation, ordin�nce or code affecting the Propert.y, or (b} any Written nocice of any liabilities or chreatened Iitigatio� or anticipa�ed condcmnation with respect to any part of ihe Propercy. 5.2 To the best of Seller's knowledge (a) chere does not ex+st, in or under t.he Property, �ny contaminant, pollutant, toxic, or hazardous waste, the release of disposal of which is regulaCed by any law, regulation, ordinance or code, including, but not limitcd to asbes�os, PCB's, urea formaldehyde, and oil products (collectively "Contaminants"), and (b) the Property has never been used fpr purposes which may have been conducive to the use or disposal of' Contaminants on the Property, such as (by the w�y of illustration and not by limitarion) a dump, gasoline st�tion, or any other industrial or manufacturing use. 5.3 Seller shall indemnify and hold Buyer harmless from and against any claim, loss or expense, including reasonable atcome�rs' fees, arising out of any material breach of the representations, warranCies and covenants contained in this Section 6. 5.�1 ScUcr has no nalice or knowledge that {i) the Property has been used as a sanitary landfill, dump> industrial waste disposal area, or any other similar usage; (ii) any haZardous or toxic materials, as such terms are defiz�ed under applicable local, statc and federal laws and regulaeions, e�cist on the surface or subsurface of the Praperty or in any surface waters or ground wakers on or under the Propercy; and (iii) it is nat in compliance with a!1 applicable environmental laws, regulations, ordinances and �rders relating to the Property. 5.5 Sellcr represenis and warrants that the Property is not sub,ject to any easements. rights-of-way, lierts, tenancies, seGUrity interest. or other encumbrances of any nature whic;h will not be discharged by and at the expensc of 5ellcr at or p�ior k� Closi�g, with the exception of such maCCers described in chis Agreement. -4- FILE No. $60 09i18 '97 16:51 ID�TOLD DE�ELOPMENT 612 420 7574 PAGE 6 5.6 Seller represents and wareants khat no person has any opcion to purchase all or any portion of the Proper�y, nor shall any person have any righti of first refusa! or similar right with respect to all or any portion of the Property. Seller ma.y not, withouc Buyer's prior wriceen consent (which shall nok be unreasonahly wit.hheld) convey, encumber or assign the Peoperty or its rights under �his Agreement. S.7 Seller has no infiormation or knowledge of any leg�) ac�ion, suits or adminisCrati�ve proceedings, including Condemnation proceedings, pending or threacened against the Property, nor any change contemplated in applicable laws, ordinances or restricti�ns, or any judicial ar �dministrative action or any action by adjacenk landowners, or natura) or art.ificial conditi�ns upon the Property, which would macerially limit or render subst�ntially more cogtly, Buyer's contemptated developmene of buildings on fhe Property. 5.8 Seller represents and wareants that the Property is not Lacated in a flood plain. 5.9 Seller h�s no notice or knowledge of any planned or commcnced public improvement which may result in special assessments or olherwise materiaily affecG Yhe Property or government agency or court order requiring repair, alteratic�n or correction of any existing condicion. 5.10 Seller represents and warranCs that. the Property may be sold wichout platting, or other subdivision procedure. The representations, warranties and covenants set forth in this SecCion 6 shall be deemed remade as of the ctosing of thc sale and purchase contemplated herein (�he "Closing") and shall, together with the indemnity obli�ation contained hcrein, survive Closing. 6. CLQ�. Unless changed as provided herein, the Closing shall be held at khe office of the Title Company in Minneapolis, Minnesota or in the office of Buyer's lender's attorney, as designated by Buyer, on or before thc date thirty (30} days after the Review Date ("Closing Date"). Buyer shall have the c>ptian to accelerate �he Closing Date upon len (10) days prior written notice to Sal.lcr, b, l At Closing, Seller shall deliver to Buyer (a) a general warranty deed to lhe Property subject only t� those excepcions to title which Buyer has accep�ed pursuant ta Section 3 and which describes the Property by legal desc.ription identical to chat shown on the ti�le insurance commitment and survey, (b) evidence satisfactory to the kitle company that the deed and othcr cl�sing documents have been validly authorized, executed and delivered by Seller, (c) an affidavit certifying that {i) there are no mortgages, judgmenc liens or other encumbrances of any nature whatsoever affecting the Property excepk as set farkh in the title insurance commitment; (ii) lhere are no rights of possession, use or otherwise, outstanding in third persons hy reasons of unrecorded leases, land contracts, sale ccmkracls, oplions or other documents, and (iii) no other unpaid-for improvements have been madc, or materials, machinery or fuel d�livered to the Praperty w�il:hin the one hundred-twenty (] �0) days immediakcly preceding the date �f closing, which mighC form �he basis of a mechanic's licn upon the Property, and (d) all other -5- FILE No. 860 09i18 '97 16�52 ID:TOLD DEIIELOPME�T 612 420 7574 PAGE 7 documents required by this Agreement c�r by 4he Title Insurance Company to issue a policy in the form described in Section 3. 6.2 At Closing, Buyer shall pay co Seller the balance of the Purchase Pricc pursuant to Section 2. The followring adjusements shall be made at Closin�: 6.2.1 Seller shall pay all delinguent re�l estate taxes, including penalcies and ineerest due and payable, and all agricultural use eax recoupment for y�ars khrough the year of closing, if any, and �ll special assessments due, pending or levied. Seller shall pay or credit on the purchase price, all real esfate laxes Levied or assessed for years pr.ior [o the closing, and a portion of such taxes levied or assessed in the year of closing, prorated chrough the date of closing. Proration of undetermined taxes shall be based on a 365-day year dnd on �he mosc recent available tax rate and valuation giving effect ta applicAble exemptions, recently voted mil]age, change in valuation, etc., ofificials as of that date, and the amounes sa compuked shall be adjusted r�vithin thirty (30) days after the actual tax amounts arc available in the year of closing, and, if the valuation should be contcsted, readjusted between the parCies upon final determinati.on of the actual year of closing �axes. 6.2.2 Bu�er shall pay the prcmium for auyer's title insurance policy inc:luding all required endorsements. Buyer shall receive a credi.t f.o� thc cast of thc Survey. Buyer and Seller shall aach pay for one-half of any closing fees. 6.2.3 Seller shall pay for any deed stamp tax or transfer tax due with respect to the v�rarrant.y deed. Buyer shall pay all recording fees. 7. �.GHTQF,�J,y7'AY: INDEMl�7T'Y�. During the tcrm hcrcof, �uyer, its agcnts and employees shall hav� the ri�ht to enter upon the Property for the purposes described in Sections 3 and 4 hercof and for any oth�r r�asonable purpc�s�. Buyer agrees t� indemnify and hold Seller hArmless Eram and against any claim, loss or expense, including reasonable attorneys' fees, to the extent such are caused by Buyer pursuant to this Section 7. 8. ��.�A�Y�: TERMTNATION. If either party shall default in any of ics respective obligations under chis Agreement, the other party may, by written notice to such defaulting party specifying t�e nature of the dcfault and the date on which this Agreement. shali terminate (which daLe shall be not less than twcnty (20) days after the giving of such notice), �erminace Chis Agreemen� and up�n such date, unless thc default so specified shall have been cured, this Agreemen� shall terminate. If this Agreemen� is terminated by Seller for Buyer's de�ault, the earnes� money shall be forfeited to and r�tained by Seller as agreed final liquidated damages and shall become the sole and exclusi�e property of Seller. If this Agreement is terminaced by Buyer for Seller's default or as otherwise provided in this Agreement, such earnest money shall thcreupon be re[urned to Buyer and Buyer tih�ll havc the right to seek all remedies a�ailable al law or in equity including without (imitation, specific performance. Seller agrees that Buy�r is entiklcd to specific performances c�f the Agreement_ If any liti�ation ar other legal accion results from a breACh �f this Agreement, the losing or defaulting par�y shal� pay the prevailing or non-defaulcing party an amount equal to the � FILE N��. 860 09�18 '97 16�52 ID�TOLD DEVELOP�ENT 612 420 7574 PAGE 8 �revailing or non-defaulting party's �e2�sonable actorneys' fees and othcr reasonable c�s�s in connection therewith. • �� . : ► �Iil.►� 9.1 Wherever in this Agreement it shall be required t.hat notice or demand be given by either parey co this Agreem�nt to or on the oCher, such nocice or demand shall not be deemed given or scrved unless in writing and forwarded by r�gistered or certified mail, postage prepaid or by confirmed f.acsimil� transmission, addressed as follows: (Thc date of transmission of the facsimite or the date deposited in the U,S. mail or with an expedited delivery carricr, shall be deemed t�he date of notice. Any date of performancc falling on a Saturday, Sunday or holiday shall bc deem�d to o�cur on Che first non- holiday weekday, next occurring.) To Seller at: Dir�ctar of Economic Derreiopment CiCy of Mounds View 2401 I�lighway 10 Muunds View, MN 55112 Attn: Cakherine Capone Bennett rax No. To Buyer at: Meridian Properties Real Estate Development L.p. c/o TOLD Dcvelopment Company 690d Wedgwooc! Road, SuiCe 100 Maple Grove, MN 55311 Fax No.: (612}420-7574 9.2 Risk of loss Shall remain with Seller untii the ddte of Closing. Seller shall promptly notify Buyer if the Property is substantially damaged by any casualty or rf condemnaticm prdceedings are commenced with respect to any part of the Property. (f cithcr of th� events described abov� occurs prior to the Closing Date, Bu�er may, at its option, terminate this Purchase Agreement by wricten notice given to Seller within ten (l0) days aftcr receipt of noticc from S�llcr hereundcr, If khis Purchasc Agreement is not so terminated, Buyer shall be �blig�ted lo close and shall thereafter be enti�led to receive and retain all insurance proceeds or condemnation awards attributable to the event in question. 9,3 Except as expreasl.y Provided to the e�ntrary herein, Seller agrccs to indemnify, defend and hold Buyer harmles4 from and against any claim, loss, damage or expenses, includin� reasonable attorneys' fees, reiating to the Property, caused by any accion or failure co act of Seller and arising or accruing ptior to Closing. 9.4 Seller shall �ay the �ntirc amount of any brokerage commission, finder's fee oc other selling commission in connection with the sale of the Property, and Seller shall indemnify and hold Buyer harmless from any claim or (oss, including reasonable attorneys' fees, incurred in connection with any such fee or cc�mmission. Buyer repres�nts khat no brokec was involved in this transaclian on behalf of Buyer. -7- FILE No. 860 09/l0 '97 16�53 ID�TOLD DEVELOP�ENT 612 420 7574 PAGE 9 9.5 This Agr�ement may be executed in sepArate counCerparts_ When counkerparts hav� been cxecuted and delivered by al1 parties, they shall constitutc one integrated Agreement which shall be binding to the same excent. as if al! parties had exec;u�ed the same counterpark. 9.6 This Agreement and any Rider attached hereto constitute the entire agreement betw�en the parties with respect to the subject matter hereof. Neikher party is relying upon any representations of the other par�y or its agents. This Agreemenc shall be governed by khe laws of the State of Minnesota. 9,'7 This Agreement shall be binding on and inure to the benefit ofi �he parcies hereto, their respective heirs, successors and assigns_ 9.8 Seller shall, at the reques� of Bu�er, execute a memorandum of che terms of this Agreement, excluding the price, which memorandum shall be in recordable form and shall, at Buyer's discretion, be record�d ir� lieu of this Agrecment, , 10. .5,�.�.:ER;�S AGC�PTANCE. This offer shall. bc null and ��id if no� accepted on or before S�ptember 3Q, 1997. iN WITNESS WHEREOF, Sellcr and Buyer have caused this instrument ta be exe�uted as of the day and year firsk above written. SEY.�.ER: CITY OF MOUNDS V1EW' ECONQMIC DEVELOPMENT AUTHORITY By: i ts: Dace: BYJYER: MERIDIAN PROPERTIES REAL ESTATE DEVELOpMENT LIMITED PARTNERSHIP, a Minnesota limited partnership By: Its: General Partner Date: [I : \TOM\MOU[�IDSV _ PUR 9 _ 1 7 _ 97 -$- T TOLD DEVELOPMENT COMPANY August 15, 1997 Mr. Chuck Whiting City Administrator City of Mounds View 2401 Highway 10 Mounds View, MN 55112 Re: County Road I and Highway 10 Dear Mr. Whiting: VIA TELEFAX: (612) 784-3462 & MAIL TOLD Development Company is presently working with a retail c(ient to locate sites throughout the Twin Cities for new store development. We are interested in inquiring the city owned property at the corner of County Road I and Highway 10, in a land assembly to accommodate the needs of our client. While our client wishes to remain unnamed as this time, I can assure you that the use is an attractive retail use, and is not associated with gasoline, automotive, fast food, or restaurant uses. I can also assure you tha� we have received preliminary client approval on the site so these efforts are not speculative in nature. Our client does require board approval at some point in the future, after the site is under contract. This particular retail use requires approximately two acres, with the need for prominent corner locations. Our preliminary analysis indicates that we can assemble the land needed by utilizing the city owned parcel at the corner and combining not more than three of the residential parcels, located along the east side of Eastwood Road, starting at County Road I and moving northward. We will be contacting those land owners over the weekend to ascertain their interest in selling their properties. We are interested in purchasing the City owned parcel, and City assistance only in terms of approvals for our contemplated use. We will pay market rates for the land, and feel confident that we can pay the City at or close to what the City paid for the City owned parcel. We will have some preliminary site plans completed by Monday, August 18, and would welcome the opportunity to present them to you. Thank you for your consideration in this matter. Ve�ry�ly yours, Ro�'t'eri'H. Cunningh Vice President - Dev opment RHC/klj h:\boblwhiting.$ I S MIIYIVEAPOLIS • MILWAUKEE • CHICAGO WEDGWOOD COMMERCE CEIVTRE � 6900 Wedgwood Road, Suite 100, Maple Grove, MIV 55311 •(612) 420�9000 Fax (612) 420-7574 FILE No. 830 G9i16 '97 16:17 ID�TOLD DEVELOP�ENT 612 420 7574 ���; oy� mo rr � �a Z � � � � z � � � � . .� . . , �} '- ir � ♦ I� � �� '�ii . ' � � ����� : � / `�' . � - ,� � 'i . � . � � ,� � , . L_ _ �..._ _..�,m � _ . � � � �! � ;�f�'�� i � .e. ' : � � �� IIIIIIIfII � I� I `�` , I � , � � � ,,,.w�i� 1 _ � � ��� �� ,N�� . ., �:� �-.:.,. �� • �� � ; ��. � . �. PAGE 2 � � rn r - � �� � D � "� _ � , • _ ._.. .� �_ �� _ ,_ __ „�. . - To: From: Dafie: Subject: (5.B.) Staff Memo Economic Development Commission Members Cathy Bennett, Director of Economic Developmenfi J u ly 17, 1997 Introduction of Upcoming Requests for Tax Increment Assistance This week I am expecting information regarding two different requests for tax increment financing assistance. Although there is insufficient time for me to review them prior to the meeting I did want to provide you with a preliminary introduction of the projects that will be coming back for consideration in October. Conference Facility Addition to the Mermaid: Charlie and Dan Hall have made a request for tax increment assistance for a proposed addition of a 500 capacity banquet/conference facility to the Mermaid. They will be requesting assistance with site assembly and funds to offset the costs of drainage and parking. The facility would add an estimated $800,000 to $1 million dollars of value to the Mermaid. Currently, the Hall's have submitted a deposit for evaluation of TIF funds for their proposal. I have forwarded this information to Dave Maroney with Community Partners who will run some preliminary projections and develop a list of considerations\comments on the project. I hope to have this complete for the meeting for your review but did not have the information or analysis prior to the complefiion of this packet. Portable Products/Fiscars (Mounds View Business Park): I have been approached by Patrick Pelstring of Public Resource Group who is representing Portable Product/Fiscars Corporation loca#ed in the Mounds View Business Park. They are interested in expanding in their location in Mounds View but would require the relocation of Sims Deltec to another building in the Business Park. Sims Deltec would consider relocating to another building but have invested an estimated $700,000 in tenant improvements that they would need to recoup through the move. Mr. Pelstring will be making an application for TIF assistance to enable the retention of both of these companies in Mounds View. Again, I may have more information by the meeting but did not have the specifics of the request prior to the completion of the packet. � _____�_ � � Staff Memo To: Economic Development Commission Members From: Cathy Bennett, Director of Economic Development Date: J u ly 17, 1997 Subject: Update on Phase II, IVlounds View Community Center (5.C.) The Council held a special work session on September 15th to discuss plans for Phase II of the Mounds View Community Center. I have attached the Preliminary Schematic Plan of the Community Center which includes meeting minutes and program outlines, design alternatives and preliminary schematic designs, costs estimates and time schedule. The Council and Community Center Task Force gave the thumbs up for continuation of the project as proposed. The architects will now develop specs and drawings for consideration prior to the formal bid process. Plans are expected to come back to the Council for consideration in mid October.