HomeMy WebLinkAboutResolution 16-EDA-290 EDA RESOLUTION 16-EDA-290
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION APPROVING A PRELIMINARY DEVELOPMENT AGREEMENT WITH
THE BEARD GROUP BY THE CITY OF MOUNDS VIEW ECONOMIC
DEVELOPMENT AUTHORITY
WHEREAS, the City of Mounds View (the "City") through the Mounds View
Economic Development Authority ("FDA") owns or controls certain land that comprises
the Crossroad Pointe Redevelopment Project Area (the "Project"); and
WHEREAS, The Beard Group (the "Developer") has requested that the City
enter into a Preliminary Development Agreement with it in order to provide the
Developer with certain rights and obligations to facilitate the redevelopment of the
Project; and
WHEREAS, the City found and determined that entering into a Preliminary
Development Agreement with the Developer is in the public interest.
NOW, THEREFORE, BE IT RESOLVED that the Mounds View Economic
Development Authority ("EDA") of the City of Mounds View, Minnesota as follows:
1. The EDA approves the Preliminary Development Agreement, subject to
modifications that do not alter the substance of the transaction and that are
approved by the City Attorney, provided that execution of the Preliminary
Development Agreement shall be conclusive evidence of approval.
2. City staff and officials are authorized to take all actions necessary to perform
the City's obligations under the Preliminary Development Agreement as a
whole.
3. That the Preliminary Development Agreement, contained in Exhibit A of this
resolution are hereby approved, ratified, established, amended, and adopted
and shall be placed on file at City Hall.
Adopted this 25th day of January, 2016.
oe F : P - 'dent
ATTEST:
7-1/1YLLAJames Ericson,Ericson, Executive Director
(seal)
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MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
AND
THE BEARD GROUP,INC.
PRELIMINARY DEVELOPMENT AGREEMENT
THIS AGREEMENT, dated this day of January, 2016, by and between the Mounds
View Economic Development Authority, a public body corporate and politic under the laws of
Minnesota("EDA")and The Beard Group,Inc., a Minnesota corporation("Developer"):
WITNESSETH:
WHEREAS, EDA desires to promote development of certain property owned by the City
known as Crossroad Pointe, located at 2390 and 2394 County Road 10 and 2400 County Road
H2, in the City of Mounds View, State of Minnesota,which property is described and depicted in
Exhibit A attached hereto("Property"); and
WHEREAS,Developer, or a special purpose entity to be formed by the Developer for the
purpose of completing this project, has submitted or is in the process of submitting a proposal
("Proposal") for development of a 119 unit market rate apartment building on a portion of the
Property("Development"),which proposal is attached hereto as Exhibit B; and
WHEREAS, the Development shall occur on the portion of the Property located at 2400
County Road H2 and legally described in Exhibit C attached hereto; and
WHEREAS, EDA desires to find another party to develop the remaining portion of the
Property("Phase 2 Development"); and
WHEREAS, EDA and Developer are interested in discussing and further planning for the
Developer's proposal for the Development; and
WHEREAS, Developer has indicated to the EDA that it will seek business subsidy
assistance from the City of Mounds View ("City") and/or the EDA to make the Development
feasible; and
WHEREAS, the City or the EDA will need to determine if various studies as may be
determined to be reasonably necessary should be conducted, including without limitation an
environmental impact or related study(if determined by the City or EDA to be necessary for the
Development), an infrastructure feasibility study (if determined by the City or EDA to be
necessary for the Development), an economic impact study(if determined by the City or EDA to
be necessary for the Development), and any other required analysis of the Development (the
"Studies") and will need to determine that the proposed Development of the Property will have a
positive impact on the City; and
WHEREAS, the City and the EDA are willing to discuss with Developer available public
subsidies for the Development; and
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WHEREAS, various land use, zoning, and subdivision issues and actions related to the
Development and the Property are required to be approved by the City in order to facilitate the
Development by the Developer; and
WHEREAS, EDA agrees to cooperate with the Developer to review and process various
land use, zoning, and subdivision issues and actions related to the Development and the Property
in order to facilitate the Development by the Developer; and
WHEREAS, EDA is willing to consider and Developer is desirous to undertake the
Development if(i) a satisfactory agreement can be reached regarding EDA's commitment for
public costs, if any, necessary for the Development; (ii) satisfactory mortgage and equity
fmancing, or adequate cash resources for the Development can be secured by Developer; and
(iii) the feasibility and soundness of the Development and other necessary preconditions have
been determined to the satisfaction of the parties.
NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and
obligations set forth herein,the parties agree as follows:
1. Future Negotiations.
The parties agree to continue negotiations in an attempt to formulate a definitive plan for
review and approval of all land use, zoning and subdivision approvals and any necessary
development agreements or contracts based on the following:
(a) Developer's Proposal, which shows the scope of the proposed
Development in its latest form as of the date of this Agreement, together with any
changes or modifications required by City or EDA;
(b) Mutually satisfactory development agreements or contracts to be
negotiated and agreed upon in accordance with negotiations contemplated by this
Agreement;
(c) Mutually satisfactory terms for the Phase 2 Development that may be
required for the Development (e.g. access and utility easements, allocation of
infrastructure costs, identity of proposed retail use, etc.); and
(d) Other terms and conditions of this Agreement.
2. Statement of Intent.
Although not conclusive or binding on either party, it is the intention of the parties that
this Agreement: (a) documents the present understanding and commitments of the parties; (b)
will lead to negotiation and execution of a mutually satisfactory development agreement or
contract prior to the termination date of this Agreement; and (c) will lead to an appropriate land
use, zoning, and subdivision application or applications. The development agreement or contract
(together with any other agreements entered into between the parties hereto contemporaneously
therewith) when executed and any land use, zoning, and subdivision approvals, will supersede all
obligations of the parties hereunder.
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3. Term; Duties.
(a) During the term of this Agreement,EDA agrees to:
(i) Proceed to seek all necessary information with regard to the
anticipated public costs, if any, associated with the Development.
(ii) Should negotiations be successful, enter into a development
agreement with the Developer for the Development.
(b) During the term of this Agreement,Developer agrees to:
(i) Develop and submit its detailed proposal, including the plans and
specifications, for purchase and development of the Development.
(ii) Conduct a due diligence review of the portion of the Property
included in the Development, including without limitation, which must be acceptable to
the Developer in its sole discretion: title, survey, environmental (Phase I & Phase II
reports), soils, and market studies.
(iii) Obtain approval by the EDA, City (including its Engineer,
Planning and Inspection Department, and any other governing authority) for approval of
the site plan, exterior elevations and finishes,PUD approval.
(iv) Obtain any other necessary governmental approval from any
governing authority.
(v) Obtain financing on terms acceptable to Developer, including but
not limited to public subsidies (such as pay-as-you-go TIF in a mutually agreeable
amount),private loans and equity investment.
(vi) Should negotiations be successful, enter into a development
agreement with the EDA for the Development.
4. Business Subsidies; TIF.
(a) EDA understands that the Developer is seeking business subsidy
assistance from the City or the EDA. During the term of this Agreement, Developer
shall:
(i) Submit to EDA a design proposal to be reviewed by EDA showing
the location, size, and nature of the proposed Development, including layouts, renderings,
elevations, and other graphic or written explanations of the Development. The design
proposal shall be accompanied by a proposed schedule for the starting and completion of
the Development.
(ii) Submit an over-all cost estimate for the design and construction of
the Development.
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(iii) Submit a time schedule for the Development.
(iv) Undertake and obtain such other preliminary economic feasibility
studies, income and expense projections, and such other economic information as
Developer may desire to further confirm the economic feasibility and soundness of the
Development.
(v) Submit to EDA the Developer's financing plan showing that the
proposed Development is financially feasible.
(vi) Furnish satisfactory, financial data to EDA evidencing Developer's
ability to undertake the Development.
(vii) Furnish information in its possession and assist the EDA with
obtaining all available business subsidy assistance.
(b) Developer understands that the Tax Increment Financing sought for the
proposed Development must be obtained as outlined by law. The EDA agrees in any
development agreement or contract entered into as contemplated herein that the EDA will
review and consider such fmancing as allowed by law, but no provision shall be
construed as an affirmative approval of such financing until such time that a separate Tax
Increment Financing agreement is entered into by both parties.
5. Feasibility.
It is expressly understood that execution and implementation of any development
agreement or contract (together with any other agreements entered into between the parties
hereto contemporaneously therewith) and any land use, zoning and subdivision approvals shall
be subject to:
(a) A determination by EDA in its sole discretion that its undertakings are
feasible based on (i) satisfaction of City Code requirements; (ii) the purposes and
objectives of any development plan created or proposed for the Development; (iii) the
Studies,if any; and(iv)the best interests of EDA.
(b) A determination by Developer that the Development is feasible and in the
best interests of Developer.
6. Effective Date; Expiration.
This Agreement is effective from the date hereof through December 31, 2016. After such
date, neither party shall have any obligation hereunder except as expressly set forth to the
contrary herein.
7. Costs; Escrow.
Developer shall be solely responsible for all costs incurred by Developer. In addition,
upon the full execution of this Agreement the Developer will pay the EDA the sum of$10,000 as
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reimbursement of its Administrative Costs (as defined below) for its evaluation of the
Developer's proposal. For the purposes of this Agreement, the term "Administrative Costs"
means out of pocket costs incurred by EDA together with staff and consultant (including
engineering, legal, financial adviser, environmental advisor, planning advisor, etc.) costs of
EDA, all attributable to or incurred in connection with the review of the development agreement
or contracts (together with any other agreements entered into between the parties hereto
contemporaneously therewith) and review and approvals of any land use, zoning and subdivision
applications for the Property, the negotiation and preparation of this Agreement, and other
documents and agreements in connection with the Development, excluding Studies that result in
the Administrative Costs exceeding the initial $10,000 deposit, unless such excess costs are
approved by the Developer as provided below. Developer acknowledges that the Developer's
proposal will require review by and/or consultation with the EDA's financial advisors, engineers,
legal advisors, and other advisors or consultants and staff. Additionally, the EDA may incur
expenses of advisors, consultants and staff related to the preparation of the development
agreement for said Development. If at any time after full execution and acceptance of this
Agreement, the EDA determines that the amount deposited by Developer will be insufficient to
pay the EDA's fees and expenses listed above, the EDA may notify the Developer in writing as
to any additional amount required to be deposited,but such additional deposits shall be limited to
$25,000 so that the overall cap for fee reimbursement of the EDA's Administrative Costs shall
be $35,000. The Developer must deposit such additional funds within 10 business days after
receipt of the EDA's notice. Any additional funds deposited by Developer and not expended by
the EDA for its Administrative Costs will be returned to the Developer on the Closing Date. The
foregoing funds will not be credited towards the purchase price or returned if the transaction
does not close. This Section 7 shall survive termination of this Agreement and shall be binding
on the Developer and the EDA regardless of the enforceability of any other provision of this
Agreement.
8. Termination.
This Agreement may be terminated upon fourteen (14) days written notice by EDA to
Developer, or Developer to EDA, if:
(a) An essential precondition to the execution of a contract cannot be met; or
(b) if, in the respective sole discretion of EDA or Developer, an impasse has
been reached in the negotiation or implementation of any material term or condition of
this Agreement.
9. Sole Developer.
Developer is designated as sole developer of the Development of the Property during the
term of this Agreement. Except for the Phase 2 Development portion of the Property, the EDA
agrees not to market the Property or to make, accept, negotiate, or otherwise pursue any other
offers for sale or purchase of the Development portion of the Property until this Agreement
expires or is terminated pursuant to Section 8 herein.
10. Severability.
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If any portion of this Agreement is held invalid by a court of competent jurisdiction, such
decision shall not affect the validity of any remaining portion of the Agreement.
11. Breach;Waiver.
In the event any covenant contained in this Agreement should be breached by one party and
subsequently waived by another party, such waiver shall be limited to the particular breach so
waived and shall not be deemed to waive any other concurrent,previous or subsequent breach.
12. Notice.
Notice or demand or other communication between or among the parties shall be
sufficiently given if sent by mail, postage prepaid, return receipt requested or delivered
personally:
(a) As to EDA: Mounds View Economic Development Authority
2401 County Road 10
Mounds View, MN 55112
Attn: City Administrator
(b) As to Developer: The Beard Group, Inc.
750 Second St.NE
Hopkins, MN 55343
Attn: William H. Beard
13. Counterparts.
This Agreement may be executed simultaneously in any number of counterparts, all of
which shall constitute one and the same instrument.
14. Governing Law.
This Agreement shall be governed by and construed in accordance with the laws of the
state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement shall be
heard in the state or federal courts of Minnesota, and all parties to this Agreement waive any
objection to the jurisdiction of these courts,whether based on convenience or otherwise.
15. Additional Actions.
The parties hereto understand that additional and separate actions, for which no
obligation is created hereunder,will be required before either the EDA or Developer is obligated
to take various actions with respect to the Development. Those actions include, but are not
limited to:
(c) Zoning, comprehensive plan, and subdivision approvals for any land use
or development proposed by Developer; and
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(d) Review of any Tax Increment Financing arrangement, or other business
subsidy, as required by law.
16. Incorporation.
The Recitals set forth in the preamble to this Agreement and the Exhibits attached to this
Agreement are incorporated into this Agreement as if fully set forth herein.
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IN WITNESS WHEREOF, the Developer has caused this Agreement to be duly executed
in its name and behalf and the EDA has caused this Agreement to be duly executed in its name
and behalf as of the day and year first above written.
DEVELOPER:
THE BEARD GROUP, INC.
By:
Its:
(?tris-c. a1/4 �
EDA:
MOUNDS VIEW ECONOMIC DEVELOPMENT
AUTHORITY
By: 1.4
e Flaherty
Its: President
By: 'f.lu
.• es Ericson
Its: Executive Director
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EXHIBIT A
DESCRIPTION/DEPICTION OF PROPERTY
The property located at 2390 County Road 10, 2394 County Road 10, 2400 County Road H2, all in
Mounds View, Minnesota, as depicted below.
Legal Description of 2390 County Road 10:
That part of the North 365.46 feet of the NE'A of the SW/of Section 8,Township 30,Range 23,
Ramsey County,Minnesota lying Southwesterly of the center line of State Trunk Highway No. 10
except the West 330 feet there of and except that part described as follows:
Beginning at the intersection of the East line of the West 330 feet and the South line of the North
365.46 feet of said NE'/.of the SW/;thence North parallel with the West line of said NE'/.of the
SW 1/4 a distance of 255 feet;thence East parallel with the North line of said NE'/4 of the SW'/a a
distance of 47.07 feet;thence Southeasterly to the intersection of the East line of the West 475 feet
and the South line of the North 193.01 feet of said NE 1/4 of the SW'/4;thence South parallel with the
West line of said NE'/of the SW 1/4 and to the South line of the North 365.46 feet thereof;thence
West to the point of beginning.
Together with a non-exclusive easement for driveway purposes over and across the South 31 feet of
the North 345.46 feet of the East 115 feet of the West 475 feet of the NE 1/4 of the SW'/.of Section
8,Township 30,Range 23,Ramsey County,Minnesota.
Together with a non-exclusive easement for parking purposes over and across the East 10 feet of that
part of the NE'/4 of the SW 1/4 of Section 8,Township 30,Range 23,Ramsey County,Minnesota
described as follows: Beginning at the intersection of the East line of the West 330 feet and the
South line of the North 365.46 feet of said NE'/4 of the SW%;thence North parallel with the West
line of said NE'/of the SW 1/4 a distance of 255 feet;thence East parallel with the North line of said
NE 1/4 of the SW 1/4 a distance of 47.07 feet;thence Southeasterly to the intersection of the East line
of the West 475 feet and the South line of the North 193.01 feet of said NE 1/4 of the SW S/;thence
South parallel with the West line of said NE 1/4 of the SW/and to the South line of the North 365.46
feet thereof,thence West to the point of beginning.
Together with an easement for utility purposes over,under and across the South 10 feet of the North
314.46 feet of the East 115 feet of the West 475 feet of the NE'/4 of the SW'/of Section 8,
Township 30,Range 23,Ramsey County,Minnesota.
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Legal Description of 2394 County Road 10:
That part of the Northeast 1/4 of the Southwest 1/4 of Section 8,Township 30,Range 23,
Ramsey County,Minnesota,described as follows: Beginning at the intersection of the
East line of the West 330 feet and the South line of the North 365.46 feet of said Northeast
1/4 of the Southwest 1/4;thence North parallel with the West line of said Northeast 1/4 of
the Southwest 1/4 a distance of 255 feet;thence East parallel with the North line of said
Northeast 1/4 of the Southwest 1/4 a distance of 47.07 feet;thence Southeasterly to the
intersection of the East line of the West 475 feet and the South line of the North 193.01
feet of said Northeast 1/4 of the Southwest 1/4;thence South parallel with the west line of
said Northeast 1/4 of the Southwest 1/4 and to the South line of the North 365.46 feet
thereof;thence West to the point of beginning,according to the United States
Government Survey thereof and situate in Ramsey County,Minnesota.
Together with a non-exclusive easement for driveway purposes,25 feet in width,over and
across part of the Northeast 1/4 of the Southwest 1/4 of Section 8,Township 30,Range 23,
Ramsey County,Minnesota,the South and Southwesterly lines of which are described as
follows:Beginning at the intersection of the East line of the West 360 feet and the South
line of the North 110.46 feet of said Northeast 1/4 of the Southwest 1/4;thence East
parallel with the North line of said Northeast 1/4 of the Southwest 1/4 a distance of 17.07
feet;thence Southeasterly to the intersection of the East line of the West 475 feet and the
South line of the North 193.01 feet of said Northeast 1/4 of the Southwest 1/4;and said
line there terminating.
Legal Description of 2400 County Road 112:
The North 363 feet of the West 330 feet of the Northeast 1/4 of the Southwest 1/4 of Section 8,
Township 30, Range 23, Ramsey County,Minnesota.
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EXHIBIT B
DEVELOPMENT PROPOSAL
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EXHIBIT C
DEVELOPMENT PROPERTY
Legal Description of 2400 County Road H2
The North 363 feet of the West 330 feet of the Northeast 1/4 of the Southwest 1/4 of Section 8,
Township 30,Range 23, Ramsey County,Minnesota.
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