Loading...
HomeMy WebLinkAboutCC RES 02-042 A RESOLUTION APPROVING THE PRELIMINARY REDEVELOPMENT AGREEMENT RELATING TO THE NORTHWEST QUADRANT AREA OF THE CITY OF ST. ANTHONY Meeting Sheet IIIIIIVIIIVIIIVIIIVIIIVIIIIIIIIIII 104637 Box: 31 Folder: RES 2002 Document: CC RES 02-042 A RESOLUTION APPROVING THE PRELIMINARY REDEVELOPMENT AGREEMENT RELATING TO THE NORTHWEST QUADRANT AREA OF THE CIN OF ST. ANTHONY • CITY OF ST. ANTHONY RESOLUTION 02-042 A RESOLUTION APPROVING THE PRELIMINARY REDEVELOPMENT AGREEMENT RELATING TO THE NORTHWEST QUADRANT AREA OF THE CITY OF ST. ANTHONY AND AUTHORIZING THE MAYOR AND CITY MANAGER TO EXECUTE SAID AGREEMENT WHEREAS, Pratt Ordway Dominium (Developer Limited Partnership)was chosen by the St. Anthony City Council to redevelop the Northwest Quadrant area of the City; and WHEREAS, the City of St. Anthony and Developer Limited Partnership desire to set forth understanding relating to said project; and WHEREAS, Ehlers &Associates, Inc., financial advisors, have submitted a proposed Preliminary Redevelopment Agreement between the City of St. Anthony and Developer Limited Partnership. • NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of St. Anthony hereby approves said Preliminary Redevelopment Agreement, contingent upon approval of the Agreement by the St. Anthony Housing and Redevelopment Authority, and authorizes the Mayor and City Manager to execute said Agreement. Adopted this 3 day of �� A J- , 2002. Mayor ATTEST: ` City Clerk Reviewed for Administration: 1 #iity*Maifager 40 • PRELIMINARY REDEVELOPMENT AGREEMENT THIS AGREEMENT,made and entered into as of the qday of Jtt rl p,2002,by and between THE CITY OF ST. ANTHONY, MINNESOTA, a Minnesota public body corporate and politic, ("City"), and PRATT-ORDWAY,LLC,a Minnesota limited liability company,or its successors or assigns("Redeveloper"). BACKGROUND The purpose of this Agreement is to set forth the understanding between the parties with respect to the redevelopment of portions of the area generally described as the St. Anthony Apache Plaza Redevelopment Area(the"Redevelopment Property")and shown in Exhibit A. BASIC TERMS AND CONDITIONS The following is a list of the terms and conditions under which the Redeveloper will proceed on an exclusive basis for the term of this Agreement to structure and develop with the City a definitive Redevelopment Agreement for the Project and is intended to define the responsibilities and roles of the respective participants regarding the proposed redevelopment of the Project. 1. Redevelopment Property. The Redevelopment Property equals 36 acres(plus/minus),of land together with all improvements and structures located on the land and easements and rights benefiting or appurtenant to the land. The exact dimensions and square footage of the project shall be determined by survey. • The parties agree that the Site may be enlarged to include other lands at the mutual agreement of the parties. 2. Undertaking and Exclusive Rights. a. In consideration of the time,effort and expenses to be incurred by the Redeveloper in pursuing the undertakings set forth herein and in further consideration of the advance of expenses of$75,000 paid to the City, the receipt of which is hereby acknowledged (the "Advance"),the City hereby agrees that for the term of this Agreement it will not:(i)provide or enter into an agreement for provision of financial assistance to any third party in connection with any proposed development within the area covered by this Agreement;and(ii)condemn or agree to proceed with the condemnation of any property within such area to assist or facilitate development within such area by a third party. During such period the Redeveloper shall have the exclusive right to make a specific proposal and negotiate the terms of a Redevelopment Agreement for the Redevelopment Property. Said exclusive rights shall continue,unless earlier terminated as provided herein,for a period of six(6)months from the date hereof,or until such later date as the parties may mutually agree. The above described fee is to be applied to payment of the Redeveloper's obligation contained in Section 11;and any unused portion will be refunded to the Redeveloper upon termination of this Agreement. The City has no obligation hereunder to enter into any Redevelopment Agreement in any form and the Redeveloper acknowledges that the City has not made any commitments in that regard. b. Upon termination of this Agreement,the City agrees to refund to the Redeveloper any • portion of the Advance that has not been expended for expenses in connection with the Project. • C. The City agrees to provide to the Redeveloper monthly updates of draws on the Advance and the balance thereof. The City shall also provide copies to the Redeveloper of bills or other documentation representing draws upon the Advance. 3. The Project. The Project will consist of the redevelopment of the redevelopment property and may include,but not be limited to:the development of housing units,which may include the development of rental and for sale multi-family housing(condominiums/townhomes),commercial space to be used for retail and service type uses and office. 4. Public Assistance. In order to achieve the foregoing multi-use redevelopment,it is anticipated that a definitive Redevelopment Agreement, if any,will contain provisions addressing a variety of forms of public assistance, which may be necessary in order to accomplish the redevelopment. No commitment is presently being made to provide any form of public assistance,and the Redeveloper acknowledges that the City has not made any representations that any assistance will be available. Examples of public assistance that may ultimately be agreed upon, include,but are not limited to, the following: a. Site Assembly. The City will consider acquisition of some or all of the Redevelopment Property based upon terms and conditions contained in the redevelopment agreement. Acquisition may be through negotiated purchase, or condemnation or a combination. Acquisition by the City shall be considered only after the Redeveloper has demonstrated good faith efforts to purchase the property, and these efforts have been unsuccessful. b. Tax Increment Financing. The City may be asked to establish a tax increment • financing district to support the Project; and agrees to give due consideration to any such request. C. Tax-Exempt Bonds. The City may be asked to act as issuer of tax-exempt bonds for the benefit of the Redevelopment Property,and agrees to give due consideration to any such request. d. Community Development Block Grant Funds. The City agrees to consider allocating a portion of any Community Development Block Grant Funds available to the City to the Redevelopment Property. 5. Redeveloper's Proposed Use,Minimum Improvements. The minimum improvements will be made pursuant to plans which are acceptable to and approved by the City as part of the Redevelopment Agreement. 6. Ownership. It is expected that any final redevelopment proposal will provide that the Project (assuming that rental housing is approved by the City)will be owned by the Redeveloper or its assignees,and that certain condominiums,town,or single family will be sold by the Redeveloper or its assignee to others. 7. Preliminary Development Activities. The Redeveloper's obligation during the preliminary development agreement period shall include but not be limited to the following: a. Preparation of a preliminary site plan to include location of buildings,description of buildings,landscaping and expected improvements. • b. Preparation of a final development agreement to address items included in Section 8. Page 2 C. Preliminary financial pro forma. d. Estimated preliminary schedule for redevelopment including land assembly, demolition,regulatory approvals and construction. 8. Contingencies._ It is expected that any redevelopment agreement will address the following items, which the parties acknowledge may be material to the Project: a. Creation of a tax increment financing district,and determination of the portion of tax increment, which will be made available to the Redeveloper; b. The acquisition of all or part of the Redevelopment Property by direct purchase or condemnation,on such tenons and conditions acceptable to the City and as determined by the City in its sole and absolute discretion. C. Preparation by the Redeveloper of a Phase I and,if required,Phase H environmental assessment and all other environmental and wetland reports and surveys certified to the Redeveloper and its lender,deemed necessary by the City and the Redeveloper for all of the property located within the Project,which reports and surveys must be satisfactory to the City and the Redeveloper; d. The City and the Redeveloper have obtained all necessary approvals for the Project from any participating governmental City including but not limited to any necessary • watershed district; e. All zoning modifications,rezoning approvals and conditional use permits necessary to allow the Project to move forward have been granted; f. The title commitment for the Redevelopment Property shall have been found acceptable to the Redeveloper in its sole discretion; g. Testing results are satisfactory to the Redeveloper including,but not limited to,soils, well, engineering, hazardous waste,and environmental reviews; and h. Financing acceptable to the Redeveloper. 9. Term. The term of this Agreement shall be effective one year from the day and year first above written or until the earlier of (a) the date this Agreement is superseded pursuant to a final Redevelopment Agreement between the City and the Redeveloper or its successors or assigns,or(b)upon such date that this Agreement is terminated by the City pursuant to this Section 9. Upon 30 days prior written notice to the Redeveloper, the City may terminate this Agreement at any time after December 31, 2002 if the City determines that the Redeveloper is not diligently pursuing the redevelopment of the portions of the Redevelopment Property and if the City establishes that such delay has not been caused in whole or in part by actions of the City. The Redeveloper shall have a reasonable time,but in no event less than 30 days,to affect a cure of such default or to demonstrate that it is diligently pursuing such cure. The City may also terminate this Agreement for the failure of the Redeveloper to pay reasonable expenses for consultants pursuant to Section 11 below. • Page 3 • 10. Legislative Judgment. The Redeveloper understands that many of the actions which the City may be called upon to take require its reasonable discretion,and in some instances, its legislative judgment. Such actions may only be made following established procedures,and the City cannot agree,in advance,to any specific decision in such matters. 11. Consultants to be retained. The City intends to retain the services of Dahlgren,Shardlow and Uban (DSU); Dorsey and Whitney, LLP; WSB Engineers; Goodwin Communications and Ehlers & Associates, Inc. and, upon the approval of the Redeveloper, other consultants as may be required upon the execution of this Agreement. DSU is being retained to assist with site planning,coordinate city review and approval process. Dorsey and Whitney is being retained to assist with legal matter pertaining to redevelopment financing and establishment of tax increment financing district. Ehlers&Associates,Inc.is being retained to assist the City in the technical matters such as project management, financial feasibility, district creation, certification and sizing,tax increment calculations,"but-for"analysis,and other factors pertaining to any claim for economic assistance. WSB Engineers is being retained to assist with engineering issues and Goodwin Communications to assist with communications issues The Redeveloper agrees that it will be responsible for reimbursing the City for all reasonable fees and expenses paid by the City to such consultant,which directly relate to the Project, and will do so within 30 days following receipt of any request to do so. 12. Notices. All communications shall be directed to the Redeveloper at: Pratt-Ordway,LLC 550 Main Street, Suite 250 New Brighton,MN 55112 • With a copy to: Winthrop&Weinstine 60 South 6`h Street Minneapolis,MN 55402 Attn: Todd B.Urness All communications shall be directed to the City at: City of St.Anthony Village City Hall 3301 Silver Lake Road NE St.Anthony Village 55418 13. Assi ent. The City agrees that the Redeveloper may assign its rights and obligations under this Agreement to another entity in which the Redeveloper owns at least a 50 percent interest in capital and profits. • Page 4 • IN TESTIMONY WHEREOF, the parties hereto have set their hands as of the date and year first above written. PRATT-ORDWAY, LLC THE CITY OF ST. ANTHONY By: By: Its Its: Mayor By: Its: City Manager i • IN TESTIMONY WHEREOF, the parties hereto have set their hands as of the date and year first above written. PRATT-ORDWAY, LLC THE CITY OF ST. ANTHONY By: By: Its Its: Mayor By: Its: City Manager T..l.lo..� R. Arc.-.,.:..r..� 1.... • idmsmpl:496520_4/3997.17 7 • Page 5