HomeMy WebLinkAbout2006.07.05 RESO 2006-0035EXTRACT OF MINUTES OF MEETING
OF THE CITY COUNCIL OF THE
CITY OF HUGO, MINNESOTA
HELD: July 5, 2006
Pursuant to due call and notice thereof, a meeting of the City Council of the City of
Hugo, Washington County, Minnesota, was duly called and held at the City Hall in said City on
Wedneday, the 5th day of July, 2006, at 7:00 o'clock p.m.
The following members were present:
Mike Granger, Chuck Haas, Becky Petryk, Frank Puleo, Fran Miron
and the following were absent: NONE
Member Chuck Haas
introduced the following resolution and moved its
adoption:
RESOLUTION 2006-35
RESOLUTION AUTHORIZING EXECUTION OF AN AMENDMENT
TO DEVELOPMENT AGREEMENT AND AN INDEMNIFICATION
AGREEMENT
A. WHEREAS, the City and Hugo Land Development, LLC (the "Developer") have
entered into a Development Agreement, dated as of February 19, 2002 (the "Development
Agreement") in connection with the construction of an approximately 93,000 square foot
building with 12,000 square feet of office space and 80,000 of manufacturing space with an
outdoor storage yard of approximately 72,000 square feet and 150 parking spaces for the facility
which will be used to manufacture modular home components and modular homes for
distribution in the Upper Midwest region located in the City (the "Project").
B. WHEREAS, the Developer has requested that the City modify the wage and job
goals set forth in the Development Agreement in connection with the business subsidy granted
therein by the City to the Developer pursuant to Minnesota Statutes, Sections II6J.993 to
116J.995.
C. WHEREAS, the City and the Developer have consulted with the Minnesota
Department of Employment and Economic Development and the City, on September 19, 2005,
held a public hearing regarding amending the wage and job creation requirements under the
Development Agreement; and
D. WHEREAS, the City issued its Taxable Tax Increment Revenue Note (Hugo
Land Development, LLC Project), Series 2002 (the "Note") to Carroll County State Bank, an
Iowa corporation, (the "Lender") pursuant to the Development Agreement and the Lender has
requested that the City continue making payments under the Note to the extent is it is legally
authorized to do so;
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NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Hugo,
Minnesota, as follows:
1. The City Council hereby approves the First Amendment to Development
Agreement between the Developer and the City and the Indemnification Agreement between the
Lender and the City in substantially the forms submitted, and the Mayor and City Clerk are
hereby authorized and directed to execute the First Amendment to Development Agreement and
the Indemnification Agreement on behalf of the City.
2. The approval hereby given to the First Amendment to Development Agreement
and the Indemnification Agreement includes approval of such additional details therein as may
be necessary and appropriate and such modifications thereof, deletions therefrom and additions
thereto as may be necessary and appropriate and approved by the City officials authorized by this
resolution to execute such agreements. The execution of the First Amendment to Development
Agreement and the Indemnification Agreement by the appropriate officer or officers of the City
shall be conclusive evidence of the approval of the Agreement in accordance with the terms
hereof.
The motion for adoption of the foregoing resolution was duly seconded by member
Becky Petryk and, after full discussion thereof, and upon a vote being taken thereof, the
following voted in favor thereof:
Mike Granger, Chuck Haas, Becky Petryk, Frank Puleo, Fran Miron
and the following voted against same: NONE
Adopted this 5th day of July, 2006. 1
Mayor
Attest: l�.t
City C
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STATE OF MINNESOTA
COUNTY OF WASHINGTON
CITY OF HUGO
I, the undersigned, being the duly qualified and acting Clerk of the City of Hugo,
Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing
extract of minutes with the original minutes of a meeting of the City Council of the City held on
the date therein indicated, which are on file and of record in my office, and the same is a full,
true and complete transcript therefrom insofar as the same relates to a Resolution Authorizing
Execution of an Amendment to Development Agreement and an Indemnification Agreement.
WITNESS my hand as such Clerk of the City Council of the City of Hugo, Minnesota
this SZi day of July, 2006.
1920763x1
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City Cl