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oa Housing and Redevelopment Authority Meeting Minutes May 11, 2004 Page 2 1 Mr. Gilligan further explained, to date, the HRA was unable to negotiate a termination of the 2 Tires Plus lease, which needed to be terminated in order for the HRA to transfer the liquor 3 store/Tires Plus parcel as required by the Redevelopment Agreement and the liquor store 4 Purchase Agreement. He noted, since this lease was not yet terminated, it was necessary at this 5 time for the HRA to authorize the acquisition of the interests of the lessee in the Tires Plus lease 6 by eminent domain. He added, under Minnesota Statutes, the HRA could not adopt a resolution 7 authorizing condemnation unless it first held a public hearing on the proposed condemnation. 8 9 Mr. Gilligan stated, following the public hearing, he recommended the HRA adopt a resolution 10 authorizing the condemnation of the Authority Parcels and the interests of the lessee in the Tires 11 Plus lease. He explained it was expected that Apache Redevelopment LLC would be able to 12 purchase the Authority Parcels directly; therefore, until directed by the developer following the 13 adoption of the resolution, no action would be taken by the HRA to commence a condemnation 14 proceeding. He added, unless the HRA was able to obtain a termination of the Tires Plus lease, 15 however, the HRA would need to immediately commence a condemnation proceeding with 16 respect to the lease following adoption of the resolution. 17 18 Steve Quam, 200 South Sixth Street, Minneapolis, stated he was an attorney with Fredrikson and 19 Byron and was representing Ronald and Judith Rasmussen, the tenants and operators of the Tires 20 Plus store. He indicated he was present to notify the HRA that Mr. and Mrs. Rasmussen had 21 filed a lawsuit against the HRA the previous day, which set forth their position with respect to 22 their rights under the lease. He added this was not the time or place to debate the merits of the 23 lawsuit;however, he wanted the HRA to know the lawsuit was served. 24 25 Chair Hodson closed the public hearing at 8:30 p.m. 26 27 Motion by Commissioner Faust, seconded by Commissioner Thuesen, to adopt Resolution 04- 28 007 authorizing the condemnation of the Authority Parcels and the interests of the lessee in the 29 Tires Plus lease. 30 31 _Motion carried unanimously. 32 33 IV. GENERAL POLICY BUSINESS OF THE H.R.A. 34 A. Resolution 04-006; Approve New Date for Phase II of Silver Lake Village. 35 Stacie Kvilvang, Ehlers and Associates Inc., noted on December 19, 2003, Council and the HRA 36 executed a Development Agreement with Apache Redevelopment LLC for the redevelopment of 37 the Northwest Quadrant. She explained, according to the Agreement, the developer was to 38 submit detailed site plans and proformas to the City by March 15, 2004, for Phase R of the 39 development. She indicated,based upon review of this information and negotiations between the 40 two parties, the developer and HRA were to enter into the Phase II contract addendum by May 41 31, 2004. She noted the developer was requesting an extension of the above-mentioned timelines 42 due to the extensive time the developer needed to expend on expediting and finalizing all the 43 components of Phase I of the development. 44