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HomeMy WebLinkAboutCC RES 03-037 A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO A PRE -REDEVELOPMENT AGREEMENT WITH AMCON CONSTRUCTION Meeting Sheet IIIIIIVIIIVIIIVIIIVIIIVIIIIIIIIIII 104526 Box: 31 Folder: RES 2003 Document: CC RES 03-037 A RESOLUTION AUTHORIZING THE MAYOR AND CIN MANAGER TO ENTER INTO APRE -REDEVELOPMENT AGREEMENT WITH AMCON CONSTRUCTION CITY OF ST. ANTHONY VILLAGE RESOLUTION 03 - 037 A RESOLUTION AUTHORIZING THE MAYOR AND CITY MANAGER TO ENTER INTO A PRE-REDEVELOPMENT AGREEMENT WITH AMCON CONSTRUCTION WHEREAS, the City of St. Anthony desires to redevelop the City-owned property generally described as the Stonehouse/SAV 1/Fire Station 1 Redevelopment; and WHEREAS, Amcon Construction has submitted a Pre-Redevelopment Agreement relating to said redevelopment project. NOW, THEREFORE,BE IT RESOLVED, that the City Council of the City of St. Anthony hereby authorizes the Mayor and City Manager to enter into an Pre-Redevelopment Agreement • with Amcon Construction, relating to the redevelopment of the above-described property, on behalf of the City of St. Anthony. Adopted this 3 day of 1'Yl r�.� , 2003. l Zyyr ATTEST: J . City Clerk Reviewed for Administration: City Nlanager • PRE-REDEVELOPMENT AGREEMENT THIS AGREEMENT, made and entered into as of the day of , 2003 by and between THE CITY OF ST. ANTHONY VILLAGE, a Minnesota public body corporate and politic, (hereinafter referred to as the "City"), and having its principal office at 3301 Silver Lake Road, St. Anthony Village, MN 55418 and AMCON CONSTRUCTION, a Minnesota company, or its successors or assigns ("Redeveloper") and having its principal office at 200 West highway 13, Burnsville MN 55337. 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 Stonehouse/SAV 1/Fire Station 1 Redevelopment (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. (a) The legal descriptions of the properties comprising the Redevelopment Property are set forth in Exhibit A. Said properties are commonly referred to as the Stonehouse/SAV 1 and Fire Station 1 Property. (b) The Redevelopment Property consists of approximately one (1) acre 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 Redevelopment Property shall be determined by survey as a part of the obligations contained in the Redevelopment Agreement. 2. Undertaking and Exclusive Rights. In consideration of the time, effort and expenses to be incurred by Redeveloper in pursuing the undertakings set forth herein and in further consideration of the deposit to be made by the Redeveloper pursuant to Section 10 of this Agreement, the City hereby agrees that for the Term of this agreement it will not enter into an agreement for provision of financial assistance to any third party in connection with any proposed development within the Site. During such Term, the Redeveloper shall have the exclusive right to work with the City in establishing a definitive Redevelopment Agreement by which the Redeveloper agrees to construct certain public and private improvements (the "Minimum Improvements") upon the Redevelopment • I PRE-REDEVELOPMENT AGREEMENT • Property and the City agrees to provide public assistance as described in Section 5, below. 3. Term. The exclusive rights described in Section 2 shall continue, unless earlier terminated as provided herein, for a period of six (6) months from the date of this Agreement, or until such later date as the parties may mutually agree. 4. The Minimum Improvements. The Minimum Improvements will include, but not be limited to, demolition of existing structures and the development of approximately 26,500 sq/ft of retail. The Minimum Improvements will be constructed pursuant to construction plans acceptable to and approved by the City. 5. Public Participation. In order to achieve the foregoing multi-use redevelopment, it is anticipated that the Redevelopment Agreement will contain provisions addressing public participation, which may be necessary in order to accomplish the redevelopment. Subject to agreement to all of the terms and conditions of the Redevelopment Agreement, the form of public assistance might include: (a) Infrastructure. All necessary public infrastructure may be constructed by and in cooperation with the City, or by the Redeveloper. Costs related thereto may be financed either through special assessments, bond proceeds or a combination thereof. • (b) Grants. The City, as well as other outside sources such as Hennepin County, might consider providing grant(s) to permit the Redeveloper to construct the Minimum Improvements. The City would agree to cooperate with the Redeveloper in efforts to secure grants or similar funding. The use of any grant(s) and the amount of such grant(s) will not be known until the exact scope of the Minimum Improvements is finally determined, and the availability of certain types of grants and a Minimum Improvement budget is established. The parties will agree on how to address these matters prior to or as a part of the Redevelopment Agreement. (c) Cash. The City may be asked to provide certain loans and/or cash contributions to the Redeveloper to support redevelopment and construction of the Minimum Improvements. Any agreement by the City to provide any of the public assistance described herein, as reflected in the Redevelopment Agreement, shall be at the absolute discretion of the City based upon availability of funding, appropriate security and its analysis of need. 6. Ownership. It is expected that the final redevelopment proposal will provide that the Redeveloper will act as the master developer of the Redevelopment Property. It is contemplated that the retail portions of the Minimum Improvements will be owned by the Redeveloper, or its successors or assignees. 2 PRE-REDEVELOPMENT AGREEMENT • 7. Contemplated Redevelopment Schedule. The contemplated redevelopment schedule is as follows: Redevelopment Agreement 3 months from date of this Agreement Sale of City Land: Summer, 2003 Construction Start Date: Summer, 2003 Project completion: Spring 2004 8. Contingencies. It is expected that the Redevelopment Agreement will address the following items: a. Redeveloper acquisition of the property and all other property not currently owned and deemed necessary to complete the agreed upon Minimum Improvements. b. Delivery to the Redeveloper of Phase I environmental assessment on City-owned property and completion of all other environmental and wetland reports and surveys deemed necessary by the City, the Redeveloper and its lenders; C. Acquisition all necessary approvals for construction of the Minimum Improvements from any participating governmental authority including, but not limited to, any necessary watershed district; • d. Completion of all zoning modifications, rezoning approvals, conditional use permits and all other governmental permits and approvals necessary to allow construction of the Minimum Improvements; e. Approval by the Redeveloper of title commitments for City-owned property; f. Approval by the Redeveloper and the City of all property test results including, but are not limited to soils, well, engineering, hazardous waste, and environmental reviews; g. Financing commitments acceptable to Redeveloper and the City; h. Agreement of the City to cooperate with the Redeveloper's lender and to execute any and all reasonable documents with respect to construction and permanent financing. i. Execution by the City and Redeveloper of necessary reciprocal operating and easement agreements to provide the necessary access to permit construction of the Minimum Improvements, and to coordinate and facilitate vehicular and pedestrian ingress and egress to the Minimum Improvements and the joint use, maintenance and repair of all common areas, utilities, parking-lots and parking structures within the Redevelopment Property. • 3 PRE-REDEVELOPMENT AGREEMENT 9. Termination. This agreement may be terminated prior to its expiration by the City as to all or a portion of the Redevelopment Property upon the giving of written notice to the Redeveloper that the Redeveloper is not cooperating with the City in attempting to reach agreement on terms of a Redevelopment Agreement or is otherwise not diligently pursuing the redevelopment of said portions of the Redevelopment Property. Redeveloper shall have a reasonable time, but in no event less than 30 days, to demonstrate to the City's reasonable satisfaction that it is diligently pursuing such matter. 10. City Consultants. (a) The City intends to retain the services of Dorsey & Whitney , LLP. and Ehlers & Associates upon the execution of this agreement. Dorsey & Whitney is being retained to assist with legal matter pertaining to redevelopment financing and the Redevelopment Agreement. Ehlers & Associates is being retained to assist the City in the technical matters such as project management, financial feasibility, tax increment calculations, "but-for" analysis, and other factors pertaining to any claim for economic assistance. (b) Redeveloper agrees that it will be responsible for reimbursing the City for all fees and expenses incurred by the City pursuant to Section 10(a). (c) Redeveloper has, simultaneously with the execution of this Agreement, deposited the sum of$10,000 with the City. The City shall apply such deposited amount to • the costs described in Section 10(a). Upon termination or expiration of this Agreement, any unused portion of the deposit will be refunded to Redeveloper. If at any time during the Term of this Agreement, the City pays such costs in excess of the deposit, the City shall notify the Redeveloper and the Redeveloper shall reimburse the City for such excess amount within 10 days of such notification. 11. Assignment. This Agreement shall not be assigned by the Redeveloper without the written approval of the City. In the event this Agreement expires or is terminated without the parties entering into a definitive Redevelopment Agreement, the Redeveloper shall assign the Preliminary Agreement to such entity or entities an the City shall direct. In the event the Redeveloper is directed to provide such an assignment, and fails or refuses to do so, the City is hereby appointed the agent of the Redeveloper for the sole purpose of perfecting such assignment, which the City may undertake and complete without further action by or approval of the Redeveloper. 12. Notices. All communications shall be directed to the Redeveloper at the address listed above with copies to: Redeveloper: Amcon Construction Atn: Jim Winkels 200 West Highway 13 Burnsville MN 55337 952-890-1217 - Phone 952-890-0064—Fax 4 PRE-REDEVELOPMENT AGREEMENT All communications shall be directed to the City at the address listed above with copies to: Attorney for the City: Jerome P. Gilligan Dorsey & Whitney LLP 50 South Sixth Street, Suite 1500 Minneapolis MN 55402 612-340-2962 Phone 612-340-2643 - Fax IN TESTIMONY WHEREOF, the parties hereto have set their hands as of the date and year first above written. AMCON CONSTRUCTION By Its CITY OF ST. ANTHONY VILLAGE By:�' -,. k, 9--;;L� s Maydr By: — '�d/ - is City Manager • 5 PRE-REDEVELOPMENT AGREEMENT