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HomeMy WebLinkAboutHRA PACKET 12122023CITY OF SAINT ANTHONY VILLAGE HOUSING AND REDEVELOPMENT AUTHORITY MEETING AGENDA Tuesday, December 12, 2023 at 7:00PM Join Meeting via Zoom There is also a dial -in option available. Members of the public who wish to attend the meeting may do so in person. Call To Order Roll Call Approval Of Agenda Consent Agenda Approval Of HRA Meeting Minutes HRA 10 -24 -2023.PDF Claims 12 -12 -23 HRA.PDF Public Hearings General Policy Of Business Of The H.R.A. HRA Resolution 23 -02 - Approving Third Amendment To Contract For Redevelopment With Doran SLV,LLC Charlie Yunker, City Manager, presenting. COVER MEMO.PDF 3RD AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT (V1 FR DORAN 12.5.23).PDF HRA RESOLUTION 23 -02.PDF Staff Reports H.R.A. Commissioner Comments Information And Announcements Adjournment If you would like to request special accommodations or alternative formats, please contact the City Clerk at 612 -782 -3313 or email city@savmn.com . People who are deaf or hard of hearing can contact us by using 711 Relay. Our mission is to promote a high quality of life to those we serve through outstanding city services. I. II. III. IV. A. Documents: B. Documents: V. VI. A. Documents: VII. VIII. IX. X. CITY OF SAINT ANTHONY VILLAGEHOUSING AND REDEVELOPMENT AUTHORITY MEETING AGENDATuesday, December 12, 2023 at 7:00PMJoin Meeting via ZoomThere is also a dial -in option available. Members of the public who wish to attend the meeting may do so in person. Call To OrderRoll CallApproval Of AgendaConsent AgendaApproval Of HRA Meeting MinutesHRA 10 -24 -2023.PDFClaims12-12 -23 HRA.PDFPublic HearingsGeneral Policy Of Business Of The H.R.A.HRA Resolution 23 -02 - Approving Third Amendment To Contract For Redevelopment With Doran SLV,LLCCharlie Yunker, City Manager, presenting.COVER MEMO.PDF3RD AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT (V1 FR DORAN 12.5.23).PDFHRA RESOLUTION 23 -02.PDF Staff Reports H.R.A. Commissioner Comments Information And Announcements Adjournment If you would like to request special accommodations or alternative formats, please contact the City Clerk at 612 -782 -3313 or email city@savmn.com . People who are deaf or hard of hearing can contact us by using 711 Relay. Our mission is to promote a high quality of life to those we serve through outstanding city services. I.II.III.IV.A.Documents:B.Documents:V.VI.A.Documents: VII. VIII. IX. X. 1 CITY OF ST. ANTHONY 2 HOUSING AND REDEVELOPMENT AUTHORITY MEETING 3 October 24, 2023 4 5 CALL TO ORDER. 6 7 Chair Stille called the meeting to order at 7:45 p.m. 8 9 ROLL CALL. 10 11 Present:Chair Stille, Commissioners Jenson, Randle, Walker and Webster. 12 Absent:None 13 Also Present:Executive Director Charlie Yunker 14 15 16 I.APPROVAL OF OCTOBER 24, 2023 H.R.A. AGENDA. 17 18 Motion by Commissioner Randle, seconded by Commissioner Jenson, to approve the October 19 24, 2023 Housing and Redevelopment Authority Agenda as presented. 20 21 Motion carried 5-0. 22 23 II.CONSENT AGENDA. 24 A.25 H.R.A. Meeting Minutes of October 10, 2023. B.26 Claims. 27 28 Motion by Commissioner Webster, seconded by Commissioner Walker, to approve the Consent 29 Agenda as presented. 30 31 Motion carried 5-0. 32 33 III.PUBLIC HEARINGS – NONE. 34 IV.35 GENERAL POLICY BUSINESS OF THE H.R.A. – NONE 36 V.37 STAFF REPORTS – NONE. 38 39 VI.H.R.A. COMMISSIONER COMMENTS – NONE. 40 41 VII.INFORMATION AND ANNOUNCEMENTS – NONE. 42 43 VIII. ADJOURNMENT. 44 45 Chair Stille adjourned the meeting at 7:50 p.m. 46 47 Respectfully submitted, 48 Debbie Wolfe 49 TimeSaver Off Site Secretarial, Inc. Housing and Redevelopment Authority Meeting Minutes October 24, 2023 Page 2 1 2 3 ATTEST: ________________________________Chair 4 City Clerk 5 City of St Anthony Village CITY OF ST ANTHONY CHECK REGISTER Page: 1 Check Issue Dates: 11/29/2023 - 12/12/2023 Dec 07, 2023 10:16AM Vendor Number Payee Check Issue Date Amount 10461 EHLERS & ASSOCIATES, INC.12/12/2023 2,381.25 Grand Totals: 2,381.25 THIS PAGE LEFT INTENTIONALLY BLANK REQUEST FOR COUNCIL CONSIDERATION To:Saint Anthony Village Housing and Redevelopment Authority From:Charlie Yunker, Executive Director Date:December 12, 2023 Housing and Redevelopment Authority Meeting Resolution:Approving Proposed Third Amendment to Contract for Redevelopment with Doran SLV, LLC BACKGROUND In front of you this evening is a resolution approving a Third Amendment to Contract for Redevelopment with Doran SLV, LLC for the former Walmart site redevelopment, referred to as The Ruby. The initial Contract for Private Redevelopment contemplated the construction of each phase of our Ruby project to be done in two phases. A Second Amendment was requested and subsequently approved, which changed the improvement construction commencement and completion dates given uncertainties with the recent pandemic. In asking for a discussion and your consent to a Third Amendment, Doran SLV, LLC is looking to do two things: 1.Confirm the City agrees that Doran has met the terms of completion for the first Phase, per the Completion of Phase I Minimum Improvements (see Part 1 in the attached) based on the issuance of a Certificate of Occupancy in December 2022, and 2.Request an extension of timing requirements on Phase 2. In Section 2(a) of the attached, Doran SLV, LLC proposes Phase II Commencement deadline of January 1, 2025 and completion date of January 1, 2027. Doran SLV, LLC representative Evan Doran is on hand to discuss their challenges, offer further insight to the request, and answer any questions the Council may have. RECOMMENDATION Staff recommends approval. HOUSING AND REDEVELOPMENT AUTHORITY CITY OF SAINT ANTHONY VILLAGE RESOLUTION 23-02 RESOLUTION APPROVING THIRD AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY OF ST. ANTHONY, MINNESOTA, THE CITY OF ST. ANTHONY VILLAGE, AND DORAN SLV, LLC This Third Amendment (“Third Amendment”) is made as of _____ __, 202__, by and among the HOUSING AND REDEVELOPMENT AUTHORITY OF ST. ANTHONY, MINNESOTA, a public body politic and corporate (the “Authority”), the CITY OF ST. ANTHONY VILLAGE, a Minnesota municipal corporation (the “City”), DORAN SLV, LLC, a Minnesota limited liability company (the “Phase I Redeveloper”), Doran St. Anthony, LLC, a Minnesota limited liability company (the “Phase I Owner”) and Doran SLV II, LLC, a Minnesota limited liability company (the “Phase II Owner and Redeveloper” and, together with the Phase I Redeveloper, the “Redeveloper”). WHEREAS, the Authority, the City, and the Phase I Redeveloper entered into that certain Contract for Private Redevelopment dated as of December 10, 2019, as amended by a First Amendment thereto dated as of June 23, 2020 and further amended by that certain Second Amendment to Contract for Private Redevelopment dated November __, 2020 (as so amended, the “Contract”), providing, among other things, for the construction of certain improvements (the “Minimum Improvements”) on the property legally described within the Contract (the “Redevelopment Property”); WHEREAS, the Redeveloper has requested, and the Authority and City have agreed, to modify certain terms of the Contract arising as a result of the continuing effects of the COVID-19 pandemic on the construction market and other causes. NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: 1.Acknowledgement of Completion of Phase I Minimum Improvements. The City and the Authority, hereby acknowledge and agree that the Phase I Redeveloper commenced construction of the Phase I Minimum Improvements and completed construction of the Phase I Minimum Improvements in full compliance with the terms of the Contract, including without limitation, Section 4.3(a) of the Contract. 2.Amendment of Section 4.3(a) of the Contract. Section 4.3(a) of the Contract is amended as follows: (a)Subject to Unavoidable Delays, the Phase I Redeveloper shall commence construction of Phase I of the Minimum Improvements by May 31, 2021. Subject to Unavoidable Delays, the Phase II Owner and Redeveloper shall commence construction of Phase II of the Minimum Improvements by January 1, 2025 Subject to Unavoidable Delays, the Phase I Redeveloper shall complete the construction of Phase I of the Minimum Improvements by April 1, 2023. Subject to Unavoidable Delays, the Phase II Owner and Redeveloper shall complete the construction of Phase II of the Minimum Improvements by January 1, 2027. All work with respect to the Minimum Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property shall be in substantial conformity with the Construction Plans as submitted by the Redeveloper and approved or deemed approved by the Authority. 3.Miscellaneous. Except as amended by this Third Amendment, the Contract shall remain in full force and effect. Wherever in the Contract or any other instrument, reference is made to the “Contract” such reference shall be to the Contract, as amended by this Third Amendment. Upon execution, Phase II Owner and Redeveloper shall reimburse the Authority for all out-of- pocket costs incurred by the Authority in connection with negotiating, drafting and approval of this Third Amendment. Each party hereto represents and warrants to the other parties that such party has the requisite power and authority to enter into this Third Amendment; that all necessary and appropriate approvals, authorizations and other steps have been taken to effect the legality of this Third Amendment; that the signatories executing this Third Amendment are authorized to do so on behalf of such party; and that this Third Amendment is valid and binding upon and enforceable against such party. This Third Amendment may be executed in any number of counterparts, each of which shall be deemed an original. Facsimile or email copies of the signature pages to this Third Amendment shall be deemed to be originals for all purposes of this Third Amendment. [Remainder of the page left blank; signatures to follow] IN WITNESS WHEREOF, the Authority, the City, the Phase I Owner and the Redeveloper have caused this Third Amendment to be duly executed by their duly authorized representatives as of the date first above written. HOUSING AND REDEVELOPMENT AUTHORITY OF ST. ANTHONY, MINNESOTA By Its Chair By Its Executive Director STATE OF MINNESOTA ) ) SS. COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this ____ day of _________, 202__, by ______________________ and ______________ the Chair and Executive Director of the Housing and Redevelopment Authority of St. Anthony, Minnesota, a public body corporate and politic and political subdivision of the State of Minnesota, on behalf of the Authority. Notary Public Authority signature page to Third Amendment to Contract for Private Redevelopment CITY OF ST. ANTHONY VILLAGE By Its Mayor By Its City Clerk STATE OF MINNESOTA ) ) SS. COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this ____ day of ____________, 202__ by ______________ and __________________, the Mayor and City Clerk, respectively, of the City of St. Anthony Village, a Minnesota municipal corporation, on behalf of the municipal corporation. Notary Public City signature page to Third Amendment to Contract for Private Redevelopment Doran SLV, LLC a Minnesota limited liability company By: Kelly J. Doran Its:Chief Manager STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of ______, 202__, by Kelly J. Doran, the Chief Manager of Doran SLV, LLC, a Minnesota limited liability company, on behalf of said limited liability company. Notary Public Phase I Redeveloper signature page to Third Amendment to Contract for Private Redevelopment Doran St. Anthony, LLC a Minnesota limited liability company By: Doran SLV, LLC, a Minnesota limited liability company Its: Managing Member By: Kelly J. Doran Its:Chief Manager STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of _____, 202__, by Kelly J. Doran, the Chief Manager of Doran SLV, LLC, a Minnesota limited liability company, as Managing Member of Doran St. Anthony, LLC, a Minnesota limited liability company, on behalf of said limited liability company. Notary Public Phase I Owner signature page to Third Amendment to Contract for Private Redevelopment Doran SLV II, LLC a Minnesota limited liability company By: Kelly J. Doran Its:Chief Manager STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of ______, 202__, by Kelly J. Doran, the Chief Manager of Doran SLV II, LLC, a Minnesota limited liability company, on behalf of said limited liability company. Notary Public THIS DOCUMENT DRAFTED BY: Doran SLV, LLC (ELD) 6423 City West Parkway Eden Prairie, MN 55344 (952) 641-9400 685163v1 MNI SA730-2 Phase II Owner and Redeveloper signature page to Third Amendment to Contract for Private Redevelopment CONSENT AND SUBORDINATION BREMER BANK, NATIONAL ASSOCIATION, a national banking association, the holder of that certain Mortgage, Security Agreement, Fixture Financing Statement and Assignment of Leases and Rents dated October 30, 2020, filed of record with the Office of the County Recorder in and for Ramsey County, Minnesota on February 8, 2021, as Document No. A04862911 (as further amended, modified or supplemented from time to time, the “Mortgage”), hereby consents to the Third Amendment to Contract for Private Redevelopment to which this Consent and Subordination is attached (the “Agreement”) and agrees that its rights in the property affected by the Agreement pursuant to the Mortgage or otherwise shall be subordinated thereto. IN WITNESS WHEREOF, BREMER BANK, NATIONAL ASSOCIATION, a national banking association, has caused this Consent and Subordination to be executed this ____ day of _______, 202___. [REMAINDER OF PAGE IS INTENTIONALLY LEFT BLANK] BREMER BANK, NATIONAL ASSOCIATION, a national banking association By: Bryan Witschen Its: Vice President STATE OF MINNESOTA ) ) ss: COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of _____, 202____, by Bryan Witschen, the Vice President of Bremer Bank, National Association, national banking association, and acknowledged that he executed the instrument on behalf of the banking association. Witness my hand and seal. Notary Public My Commission Expires: CONSENT AND SUBORDINATION BRIDGEWATER BANK, a Minnesota state banking corporation, the holder of that certain Mortgage, Security Agreement, Fixture Financing Statement and Assignment of Leases and Rents dated October 30, 2020, filed of record with the Office of the County Recorder in and for Ramsey County, Minnesota on November 4, 2020, as Document No. A04842672 as corrected and rerecorded on March 2, 2021, as Document No. A04867306 (as further amended, modified or supplemented from time to time, the “Mortgage”), hereby consents to the Third Amendment to Contract for Private Redevelopment to which this Consent and Subordination is attached (the “Agreement”) and agrees that its rights in the property affected by the Agreement pursuant to the Mortgage or otherwise shall be subordinated thereto. IN WITNESS WHEREOF, BRIDGEWATER BANK, a Minnesota state banking corporation, has caused this Consent and Subordination to be executed this ____ day of __________, 202____. [REMAINDER OF PAGE IS INTENTIONALLY LEFT BLANK] BRIDGEWATER BANK, a Minnesota state banking corporation By: Tyler Manning Its: Vice President STATE OF MINNESOTA ) ) ss: COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this _____ day of _______, 202___, by Tyler Manning, the Vice President of BRIDGEWATER BANK, a Minnesota state banking corporation, and acknowledged that he executed the instrument on behalf of the banking corporation. Witness my hand and seal. Notary Public My Commission Expires: CITY OF ST. ANTHONY VILLAGE STATE OF MINNESOTA HRA RESOLUTION 23-02 RESOLUTION APPROVING THIRD AMENDMENT TO CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY OF ST. ANTHONY, MINNESOTA, THE CITY OF ST. ANTHONY VILLAGE, DORAN SLV, LLC, DORAN ST. ANTHONY, LLC, AND DORAN SLV II, LLC BE IT RESOLVED BY the Board of Commissioners ("Board") of the Housing and Redevelopment Authority of St. Anthony, Minnesota (the "Authority") as follows: Section 1.Recitals. 1.01.Pursuant to its authority under Minnesota Statutes, Sections 469.001 to 469.047 and 469.174 to 469.1794, as amended, the Authority has undertaken a program to promote the development and redevelopment of land identified as the Northwest Quadrant which is underutilized within the City, and in this connection created its Redevelopment Project Area No. 3 (hereinafter referred to as the “Project”) in an area (the “Project Area”) located in the City pursuant to the Act, and previously established Tax Increment Financing District No. 3-5, a redevelopment TIF district (the “TIF District”), made up of property in the Project Area. 1.02.The Authority, the City of St. Anthony Village, and Doran SLV, LLC executed a Contract for Private Redevelopment, dated as of December 10, 2019 as amended by a First Amendment thereto dated as of June 23, 2020, and further amended by a Second Amendment thereto dated as of November 24, 2020, (as so amended, the “Contract”), providing, among other things, for the construction of certain improvements (the “Minimum Improvements”) on the property legally described in the Contract and located within the TIF District (the “Redevelopment Property”). 1.03.Due to ongoing challenging economic and financial market conditions which create hardship to secure project financing and other factors, the parties have negotiated and propose to execute a Third Amendment to the Contract (the “Third Amendment”) to extend the deadlines for the commencement and completion of construction of the Minimum Improvements, and to acknowledge certain partial assignments of Doran SLV, LLC’s rights and obligations under the Contract to Doran St. Anthony, LLC and to Doran SLV II, LLC. Section 2.Third Amendment Approved. 2.01.The Third Amendment as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the Chair and Executive Director, provided that execution of the Third Amendment by such officials shall be conclusive evidence of approval. 2.02.The Chair and Executive Director are hereby authorized to execute on behalf of the Authority the Third Amendment and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority, its obligations thereunder. 2.03.Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. Approved this 12th day of December, 2023, by the Board of Commissioners of the Housing and Redevelopment Authority of St. Anthony, Minnesota. _________________________________ Chair ATTEST: _____________________________ Secretary