HomeMy WebLinkAbout18-EDA-303EDA RESOLUTION 18 -EDA -303
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
RESOLUTION APPROVING A PRELIMINARY DEVELOPMENT AGREEMENT WITH
INH PROPERTY MANAGEMENT, INC. BY THE MOUNDS VIEW ECONOMIC
DEVELOPMENT AUTHORITY
WHEREAS, the Mounds View Economic Development Authority ("EDA") owns or
controls certain land that comprises the Crossroad Pointe Redevelopment Project Area
(the "Project"); and
WHEREAS, INH Property Management, Inc. (the "Developer") has requested that
the EDA 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 EDA found and determined that entering into a Preliminary
Development Agreement with the Developer is in the public interest.
NOW, THEREFORE, BE IT RESOLVED by the Mounds View Economic
Development Authority ("EDA") of the City of Mounds View, Minnesota as follows:
1. That the above -referenced recitals are incorporated into this Resolution.
2. 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 EDA Attorney, provided that execution of the Preliminary
Development Agreement shall be conclusive evidence of approval.
3. EDA staff and officials are authorized to take all actions necessary to perform
the EDA's obligations under the Preliminary Development Agreement as a
whole.
4. That the Preliminary Development Agreement, contained in Exhibit A of this
resolution is hereby approved, ratified, established, amended, and adopted and
shall be placed on file at City Hall.
Adopted this 8'h day of January, 2018.
14 Carol A. I
Mue I er, Ptesidenf�
ATTEST:
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Nyle ikmund xecutive Director
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512.390yi MU205246
EXHIBIT A
PRELIMINARY DEVELOPMENT AGREEMENT
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MOUNDS VIEW ECONOMIC DEVELOPMENT AUTHORITY
AND
INH PROPERTY MANAGEMENT, INC.
PRELIMINARY DEVELOPMENT AGREEMENT
THIS AGREEMENT, dated this 8th day of January, 2018 (the "Effective Date"), by and
between the Mounds View Economic Development Authority, a public body corporate and
politic under the laws of Minnesota ("EDA") and INH Property Management, Inc., a Minnesota
corporation d/b/a INH Properties ("Developer") or its assigns:
WITNESSETH:
WHEREAS, the EDA desires to promote development of certain property owned by the
EDA which is lmown as Crossroad Pointe, located at 2390 and 2394 Mounds View Boulevard
and 2400 County Road H2, in the City of Mounds View, State of Minnesota, which property is
legally 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 for
development of an approximately 124 unit (one hundred percent) market -rate apartment building
(subject to Section 10 of this Agreement) on a portion of the Property ("Multi -family
Development"), which proposal is attached hereto as Exhibit C; and
WHEREAS, Developer is also proposing an approximately 15,000-20,000 square foot
Heartland Gun Club & Range on a portion of the property (the "Specialty Retail Development"),
which proposal is attached hereto as Exhibit B; and
WHEREAS, Developer, is proposing, as an alternate to or in conjunction with the Special
Retail Development, an approximately 3,000-5,000 square foot traditional retail portion of the
development (the "Traditional Retail Development"), which proposal is attached hereto as
Exhibit D; and
WHEREAS, the Development shall occur on the portion of the Property located at 2400
County Road H2; and
WHEREAS, the EDA desires that the Traditional Retail Development and the Special
Retail Development, or another specialty use to be approved by the EDA, (collectively, the
"Retail Development") is constructed on the remaining portion of the Property; and
WHEREAS, the EDA desires that the development of all three parcels, consisting of
approximately 4.25 acres, and all of the phases of proposed development shall be completed in
their entirety by the end of 2020.
WHEREAS, the EDA and Developer are interested in discussing and further planning for
the Developer's proposal for the Development; and
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WHEREAS, the Developer has indicated to the EDA that the Specialty Retail
Development component of the development will be completely privately financed and the
Developer does not anticipate requesting any business subsidies or other financial incentives
from the EDA or the city of Mounds View (the "City"); and
WHEREAS, the Developer has indicated that it may seek business subsidy assistance or
financial incentives from the City and/or the EDA to make the apartment and/or traditional retail
portion of the Development feasible; and
WHEREAS, 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, an infrastructure feasibility study, an economic impact study, and any
other studies which are either required by law or deemed appropriate by the EDA and/or City;
and
WHEREAS, the EDA will continue to discuss and negotiate with the Developer
regarding the overall development of the Property; and
WHEREAS, the EDA are willing to discuss with the Developer any public subsidies
which may be available for the Development, however, nothing herein shall be interpreted as an
approval or guarantee of any future public financial assistance, including but not limited to tax
increment financing, tax abatement, business subsidies, or any other public assistance authorized
by law; and
WHEREAS, various ordinance, 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, the EDA agrees to cooperate with the Developer to review and to assist the
Developer, where deemed appropriate by the EDA, with obtaining various ordinance, land use,
zoning, and subdivision approvals and actions related to the Development and the Property in
order to facilitate the Development by the Developer, provided that nothing herein shall be
interpreted as an approval or guarantee of any future land use, zoning, or other required City
approvals; and
WHEREAS, the EDA is willing to consider and the Developer is desirous to undertake
the Development if (i) a satisfactory agreement can be reached regarding the EDA's commitment
for public costs, if any, necessary for the Development; (ii) satisfactory mortgage and equity
financing, 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:
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I . Future Negotiations.
The parties agree to continue negotiations pursuant to the terms of this Agreement in an
attempt to formulate a definitive plan for a development agreement 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 the City or the 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 Specialty Retail Development, the
Traditional Retail Development, and the Multi -family Developments 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; and
(b) will lead to the negotiation and execution of a mutually -satisfactory development agreement
or contract prior to the termination date of this Agreement. The development agreement
(together with any other agreements entered into between the parties hereto contemporaneously
therewith) will supersede all obligations of the parties hereunder.
3. Term: Duties.
(a) During the term of this Agreement, the EDA agrees to:
(i) Proceed to seek all necessary information with regard to the
anticipated public costs, if any, associated with the Development; and
(ii) Should negotiations be successful, enter into a development
agreement, if satisfactory to the EDA in its sole discretion, with the Developer for the
Development.
(b) During the term of this Agreement, the Developer agrees to:
(i) Develop and submit its detailed proposal, including the plans and
specifications, for purchase and development of the Property;
(ii) Conduct a due diligence review of the portion of the Property
included in the Development, including without limitation, which must be acceptable to
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5112640 SSR MU205-46
the Developer in its sole discretion: title, survey, environmental (Phase I & Phase II
reports), soils, and market studies;
(iii) Obtain approval by the EDA and the City (including its Engineer,
Planning and Inspection Department, and any other governing authority) for approval of
the site plan, exterior elevations and finishes, and 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, or equity investment(s); and
(vi) Should negotiations be successful, enter into a development
agreement with the EDA for the Development.
4. Business Subsidies; TIF.
(a) The EDA understands that the Developer may be seeking business subsidy
assistance from the City and/or the EDA. During the term of this Agreement, Developer
shall:
(i) Submit to the EDA a design proposal to be reviewed by the 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;
(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 the EDA the Developer's financing plan showing that
the proposed Development is financially feasible;
(vi) Furnish satisfactory financial data to the EDA evidencing
Developer's ability to undertake the Development; and
(vii) Furnish information in its possession and assist the EDA with
obtaining all available business subsidy assistance which the EDA may deem appropriate.
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5112640 SJR MU205-46
(b) Developer understands that the Tax Increment Financing sought for the
proposed Development must be obtained as outlined by law.
5. Feasibility.
It is expressly understood that execution and implementation of any development
agreement (together with any other agreements entered into between the parties hereto
contemporaneously therewith) shall be subject to:
(a) A determination by the 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 the 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 Effective Date until one (1) year after the Effective
Date. 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 an initial non-
refundable sum of $7,500.00 as 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 $7,500.00 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. The
Developer must deposit such additional funds within 10 business days after receipt of the EDA's
notice. Any additional funds beyond the initial non-refundable $7,500 deposited by Developer
and not expended by the EDA for its Administrative Costs will be returned to the Developer on
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5112640 SSR MU205-46
the Closing Date. Any public subsidies applied for by the Developer will require separate
application fees and deposits from the fees stated in this Preliminary Development Agreement as
it pertains to the appropriate public subsidy application. 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 if Developer ceases to negotiate in good faith with
the EDA, and such failure to negotiate in good faith is not cured after 30 days written notice of
such failure by EDA to Developer.
9. Sole Developer.
The Developer is designated as sole developer and shall have exclusive rights of the
Development of the Property for a period on one (1) year from the Effective Date (the "Perm").
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 the Term
of this Agreement expires or the Agreement is terminated pursuant to Section 8 herein.
For purposes of clarity the Developer, or its assign whose Principal is James E. Illies, anticipates
to own the entire three parcels and will be developing the housing and Traditional Retail
Development on the Property. The Developer intends to reserve the right to sell that portion of
the property associated with the Special Retail Development to a separate individual or entity.
James E. Illies is designated as the point person and main contact for both the INH development
and the Special Retail Development portion of the project. Greg Moore, will be representing the
Specialty Retail Development as a partner with Pat Egan and will receive notices as provided in
Section 13. The address for the Special Retail Development is, Heartland Gun Club & Range,
CIO Pat Egan, 6503 Shadow Lane, Chanhassen, MN 55317.
10. Apartment Development.
Notwithstanding anything herein to the contrary, the EDA acknowledges that the number of
units for the Multi -Family Development have not been determined and that it is estimated to be
between approximately 100 and 160 units, respectively. In addition, notwithstanding anything
herein to the contrary, in the event the City or the EDA does not allow or rejects any of the
Traditional Retail Development or the Specialty Retail Development contemplated hereunder, the
proposed Multi -Family Development contemplated hereunder shall not be affected and the parties
shall continue to proceed with the negotiations for the proposed Multi -Family Development as
provided in this Agreement.
IL Severability.
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.
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12. 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.
13. 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 Mounds View Boulevard
Mounds View, MN 55112
Attn: Executive Director
(b) As to Developer:
(c) As to Developer:
14. Counterparts.
INH Properties
175 7th Avenue South
Waite Park, MN 56387
Attn: James E. Illies, Principal
Heartland Gun Club & Range
6503 Shadow Lane
Chanhassen, MN 55317
Attn: Pat Egan & Greg Moore
This Agreement may be executed simultaneously in any number of counterparts, all of
which shall constitute one and the same instrument.
15. 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.
16. 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:
(a) Zoning, comprehensive plan, and subdivision approvals for any land use
or development proposed by Developer; and
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5112640 SJR MU205-46
(b) Review of any Tax Increment Financing arrangement, or other business
subsidy, as required by law.
17. 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 WPfNESS 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:
INH PROPERTY MANAGEMENT, INC.
By:
Its: r �
EDA:
MOUNDS VIEW ECONOMIC DEVELOPMENT
AUTHORITY
Corot Mueller
Its: President
By: 41t, 16
Nyle 7 mond
Its: Exe hive Dir etor
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EXHIBIT A
DESCRIPTION/DEPICTION OF PROPERTY
The property located at 2390 Mounds View Boulevard, 2394 Mounds View Boulevard, 2400 County Road H2,
all in Mounds View, Minnesota, as depicted below.
[Insert Description/Depiction]
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EXHIBIT A
DESCRIPTION/DEPICTION OF PROPERTY
Ramsey County Parcel Report 2400 County Road H2
I1 r��
Parcel location within Ramsey County
2400 County Road H2
Mounds View Boulevard
Mounds View, MN 55112-4709
Parcel ID: 083023310005
Owners: Mounds View Economic Development Authority
Tax lot highlighted in red
Plat Name: SECTION 8 TOWN 30 RANGE 23
Tax Description: The N 363 Ft Of W 330 Ft Of Ne 1/4 Of Sw 1/4 (subj To Roads) Of Sec 8 Tn 30
Rn 23
Area: 2.05 Acres
Rice Creek Watershed
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EXHIBIT A
DESCRIPTION/DEPICTION OF PROPERTY
Ramsey Cuunty Parcel Report 2394 Mounds View Boulevard
Parcel location within Ramsey County
2394 Mounds View Boulevard
Mounds View, MN 55112-4922
Parcel ID: 083023310071
Owners: Mounds View Economic Development Authority
Plat Name: SECTION 8 TOWN 30 RANGE 23
Tax Description: Part Of Ne 1/4 Of Sw 1/4 Desc As Fol; Beg At A Point On The Centerline Of
Greenfield Ave 365.46 Ft S Of The N Line Of Sd 1/4 1/4, Th N Along Centerline Of Sd Ave 255
Ft, Th E Par With N Line Of Sd 1/4 1/4 For 47.07ft Th Sely To A Pt 193.01ft S Of N Line &
Area: 0.48 Acres
Rice Creek Watershed
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EXHIBIT A
DESCRIPTION/DEPICTION OF PROPERTY
Ramsey County Parcel Report 2390 Mounds `view Boulevard
nmll
mom .
11111191 .o ....we
Parcel location within Ramsey county
2390 Mounds View Boulevard
Mounds View, MN 55112-4922
Parcel ID: 083023310072
Owners: Mounds View Economic Development Authority
Plat Name: SECTION 8 TOWN 30 RANGE 23
Tax Description: Part Of Ne 1/4 Of Sw 1/4 Desc As Fol; Beg On Center Line Of Greenfield Ave At
A Point 110.46 Ft S Of The N Line Of Sd 1/4 1/4, Th E Par With Sd N Line 47.07 Ft, Th Sely To A
Pt 193.01 Ft S Of N Line & 475 Ft E Of W Line Of Sd 1/4 1/4, Th S Along A Line 47
Area: 1.28 Acres
Rice Creek Watershed
The user of this report acknowledges that the Oty/County shall not be liable for any damages, and erpressty waives all calms, and
agrees to defend, indemnify, and hold harmless the City/County from any and all claims brought by the User, its employees or agents,
or third parties which arise out of the User's access or use of data provided. *Total Tax incudes special assessment due if any.
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EXHIBIT B
DEVELOPMENIT PROPERTY
(SPECIALTY RETAIL)
Approximately 20,000 square feet
[Insert Development Property Description located at 2390 Mounds View Boulevard]
Heartland Gun Club and Range Site & Floorplan
Site Plan
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