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Home My WebLink AboutEDA Packet 03.15.22If you need accommodations for the EDA meeting please contact Rachel Juba at (651) 762-6304 or rjuba@ci.hugo.mn.us, thank you. Agenda ECONOMIC DEVELOPMENT AUTHORITY (EDA) Tuesday, March 15, 2022 Hugo City Hall 5:30 PM 5:30 pm 1. Call to Order 5:31 pm 2. Roll Call (Arcand, Chrun, Denaway, Gallivan, Klein, Puleo, Roberts, Weidt) 5:32 pm 3. Approval of Minutes EDA Meeting of February 15, 2022 5:35 pm 4. Update on Downtown Development Project Request for purchase agreement amendments 6:15 pm 5. Adjournment If you need accommodations for the EDA meeting please contact Rachel Juba at (651) 762-6304 or rjuba@ci.hugo.mn.us, thank you. Background memo for the EDA Meeting of Tuesday, March 15, 2022 3. Approval of Minutes Staff recommends approval of the minutes from the February 15, 2022 EDA Meeting as presented. 4. Update on Downtown Development Denny Trooien, Of Dennis Properties has the purchase agreement on the City owned property in downtown would like to provide an update to the EDA on the proposed project. Mr. Trooien is also requesting the EDA to consider a purchase agreement amendment to extend the closing dates and completed construction dates. The existing closing date for the first phase is May 20, 2022. He is requesting for the first phase closing date to be September 20, 2022, with the availability to extend with written notice to January 31, 2023. He is also requesting a 1-year extension of on the closing date for the second phase. He is requesting the completion of the first phase construction to be extended from December 31, 2022, to December 31, 2023. If approved, the purchase agreement exhibit dates will be updated accordingly. Denny Trooien will be attending the EDA meeting via Zoom. MINUTES FOR THE EDA MEETING OF FEBRUARY 15, 2022 Chair Weidt called the meeting to order at 5:30pm. PRESENT: Arcand, Chrun, Denaway, Klein, Puleo, Roberts, Weidt. ABSENT: Gallivan. STAFF: Bryan Bear, City Administrator Rachel Juba, Community Development Director Emily Weber, Community Development Assistant APPROVAL OF MINUTES FOR THE EDA MEETING OF DECEMBER 21, 2021 Commissioner Klein made a motion, seconded by Commissioner Puleo, to approve the December 21, 2021 EDA meeting minutes. Ayes: All. Nay: None. Motion carried. ANNUAL BUILDING REPORT OF 2021 Staff provided an overview of the 2021 Annual Building Report. The EDA commissioners discussed the previous year’s planning and development activity. EDA ANNUAL REPORT OF 2021 Staff presented the final format of the 2021 EDA Annual Report. DOWNTOWN PROPERTY PURCHASE Staff provided a background on property purchased within the downtown area of Hugo. In August 2021, the EDA made a recommendation to purchase 14696 Fondant Avenue North and the City closed on the property in September 2021. Staff has been approached by the property owner at 14716 Fondant Avenue North and they are looking to sell their property. The property is located within the Downtown Hugo area and is adjacent to existing city-owned properties. Staff recommended that the EDA discuss the purchase of the property and provide direction to staff. The EDA discussed the purchase of the property and generally agreed that the property would be beneficial for the City to own due to the location. Motion by Denaway, second by Roberts, to have staff continue negotiating with the property owner and purchase the property. Ayes: All. Nay: None. Motion carried. UPDATE ON DOWNTOWN DEVELOPMENT Staff provided an update on Denny Trooien’s proposed Downtown Hugo project. Staff also provided a background on the current water usage implications within the City and it was discussed by the EDA ADJOURNMENT Commissioner Roberts made a motion, seconded by Commissioner Klein, to adjourn at 6:49pm. Ayes: All. Nay: None. Motion Carried. Respectfully submitted. Emily Weber, Community Development Assistant 1 SECOND AMENDMENT TO PURCHASE AGREEMENT This Second Amendment to Purchase Agreement is made effective March 21, 2022 by and between the City of Hugo (“Seller”) and DENNIS Properties, LLC (“Buyer’): WHEREAS, Seller and Buyer are parties to that certain Purchase Agreement dated January 20, 2021 relating to approximately 4.5 acres of land located in the City of Hugo, as amended by the First Amendment to Purchase Agreement (collectively the “Purchase Agreement”); WHEREAS, Seller and Buyer desire to enter into this Second Amendment to the Purchase Agreement as more fully set forth below; NOW, THEREFORE, Seller and Buyer hereby agree to this Second Amendment as follows: 1. The first and second sentences of section 3(A) are hereby replaced in their entirety by the following: First Phase: The First Phase shall occur no later than September 30, 2022 (the “First Phase Closing Date”); provided, however, that Buyer may by written notice to Seller extend the First Phase Closing Date to January 31, 2023, in which case $10,000 of the Earnest Money may become nonrefundable as set forth in section 2.b.(iii) above. The portion of the Property to be acquired at the First Phase shall consist of not less than 1 acre and not more than 2.3 acres of the real property. 2. The first sentence of section 3(B) is hereby replaced in its entirely by the following: Second Phase: The Second Phase shall occur no later than September 30, 2026 (the “Second Phase Closing Date”); provided that Buyer may extend the Second Phase Closing Date to September 30, 2027 if Buyer deposits Twenty Thousand Dollars of additional Earnest Money with Escrow Agent no later than September 30, 2026. 3. The date of December 31, 2022 in the first sentence of section 4(A) is changed to December 31, 2023. 4. The date in the first sentence of Exhibit B, section 1 is hereby changed from December 31, 2022 to December 31, 2023 5. In Exhibit B, section 2, the date of December 31, 2022 is hereby changed to December 31, 2023, and the date of March 1, 2023 is changed to March 1, 2024. 6. In all other respects, the Purchase Agreement remains in full force and effect and is not amended. SELLER: 2 CITY OF HUGO _________________________________ By: Tom Weidt Its: Mayor BUYER: DENNIS Properties. LLC By:_____________________ Dennis Trooien Its: Chief Manager NO PARKINGNO PARKINGNO PARKINGNO PARKINGSHEETSHEET TITLEPROJECT INFODRAWN:DESIGNED:CHECKED:PROJECT NO:ISSUE RECORDSignature Name:Date:Lic. No.:DENNIS PROPERTIES2214 FIFTH STREET, UNIT 3,WHITE BEAR LAKE, MN 55110651-247-7007Print Name:CERTIFICATIONSignature Name:Date:Lic. No.:PREPARED FORPROJECTPrint Name:I hereby certify that this plan, specification, orreport was prepared by me or under my directsupervision and that I am a duly LicensedProfessional Engineer under the laws of theState of Minnesota.3701 WAYZATA BOULEVARDSUITE 100MINNEAPOLIS, MN 55416-3791PH: 763-475-0010www.srfconsulting.comNO. DATE DESCRIPTION010-22-2021CITY SUBMITTALDOWNTOWN HUGO NORTHEAST CORNER OF HIGHWAY 61 / 146TH STREET N, HUGO, MN 55038 P. SCHROEDER14356.00N. SCHAUFENBUELN. SCHAUFENBUELP. SCHROEDERXXXXX25820PAUL D. SCHROEDEROVERALL LANDSCAPEPLANL1.0EGG LAKENUS HWY 61(FOREST BLVD N)FONDANT AVE NWASHINGTON REGIONAL RAILROAD AUTHORITY(ABANDONED BURLINGTON NORTHERN RAILROAD)146 THST NLANDSCAPE LEGENDPROPERTY LINEEXISTING TREE CRITICAL ROOT ZONEDECIDUOUS TREECONIFEROUS TREEORNAMENTAL TREESHRUBS/PERENNIALSMnDOT SEED MIX 34-171(WETLAND REHABILITATION)SALT-TOLERANT SODMnDOT SEED MIX 25-131(COMMERCIAL TURF)EXISTING TREE/SHRUBS TO REMAINLIMITS OF IRRIGATIONLANDSCAPE EDGERNATIVE SEED MIX TO BE AT ALLDISTURBED AREAS AS NEEDED, NOTINTENDED TO COVER ENTIRE AREAPROVIDE TEMPORARY IRRIGATIONFOR NATIVE SEED MIX DURINGESTABLISHMENT PERIODRAISED PERENNIAL BEDW/ORNAMENTAL TREE, TYP.LANDSCAPE PLANTING BEDW/BLACK VINYLCOMMERCIAL-GRADE EDGER, TYP.CANOPY TREE INCIRCULAR GRATE,TYP.SEE PEDESTRIAN PROMENADEENLARGEMENT, SHEET L1.2PRIVATE MAIN STREETLANDSCAPE SUMMARYLIMIT OF IRRIGATIONIRRIGATION PUMP ASSEMBLYLOCATION (UNDER DECK)IRRIGATION TO USE EGG LAKE FORWATER SUPPLYIRRIGATION PUMP INLET PIPELOCATION (UNDER DOCK)NE BUILDING #2NE BUILDING #1NW BUILDINGSW BUILDINGSE BUILDINGORDINARY HIGH WATERLEVEL / PROPERTY LINEEDGE OF DELINEATEDWETLANDDOCKDOCKDOCKDECKINGDECKINGALL LANDSCAPE BEDS TOHAVE SHREDDEDHARDWOOD MULCH NO PARKINGNO PARKING2ARR2UNH5IBC5CAF10SSB10SSB5SSB1QBI2UNH8CK8CK2MPR4CK3PGD6ST3CAF3CAF6ST2GD2GD14RAL6RAL8RAL10RAL2MSS1MSS1QBI5CAF10ST5SSB5SSB3HF25HH3HF220HH11HF5HF25HF11HH3HF6HF29HH4RFG21CVZ5AD17RFG6CVZ17AD2ARR5SSB2MSS1MSS3MPR15CAK3PNI1PNISHEETSHEET TITLEPROJECT INFODRAWN:DESIGNED:CHECKED:PROJECT NO:ISSUE RECORDSignature Name:Date:Lic. No.:DENNIS PROPERTIES2214 FIFTH STREET, UNIT 3,WHITE BEAR LAKE, MN 55110651-247-7007Print Name:CERTIFICATIONSignature Name:Date:Lic. No.:PREPARED FORPROJECTPrint Name:I hereby certify that this plan, specification, orreport was prepared by me or under my directsupervision and that I am a duly LicensedProfessional Engineer under the laws of theState of Minnesota.3701 WAYZATA BOULEVARDSUITE 100MINNEAPOLIS, MN 55416-3791PH: 763-475-0010www.srfconsulting.comNO. DATE DESCRIPTION010-22-2021CITY SUBMITTALDOWNTOWN HUGO NORTHEAST CORNER OF HIGHWAY 61 / 146TH STREET N, HUGO, MN 55038 P. SCHROEDER14356.00N. SCHAUFENBUELN. SCHAUFENBUELP. SCHROEDERXXXXX25820PAUL D. SCHROEDERPHASE ILANDSCAPE PLANL1.1EGG LAKENUS HWY 61(FOREST BLVD N)FONDANT AVE NWASHINGTON REGIONAL RAILROAD AUTHORITY(ABANDONED BURLINGTON NORTHERN RAILROAD)146 THST NPHASE I PLANT SCHEDULENATIVE SEED MIX TO BE AT ALLDISTURBED AREAS AS NEEDED, NOTINTENDED TO COVER ENTIRE AREAPROVIDE TEMPORARY IRRIGATIONFOR NATIVE SEED MIX DURINGESTABLISHMENT PERIODIRRIGATION PUMP ASSEMBLYLOCATION (UNDER DECK)IRRIGATION TO USE EGG LAKE FORWATER SUPPLYIRRIGATION PUMP INLET PIPELOCATION (UNDER DOCK)ORDINARY HIGH WATERLEVEL / PROPERTY LINEEDGE OF DELINEATEDWETLANDDOCKDOCKPRIVATE MAIN STREETSW BUILDINGSE BUILDINGPROVIDE TEMPORARY IRRIGATIONFOR INTERIM CONDITIONSLANDSCAPE LEGENDPROPERTY LINEEXISTING TREE CRITICAL ROOT ZONEDECIDUOUS TREECONIFEROUS TREEORNAMENTAL TREESHRUBS/PERENNIALSMnDOT SEED MIX 34-171(WETLAND REHABILITATION)SALT-TOLERANT SODMnDOT SEED MIX 25-131(COMMERCIAL TURF)EXISTING TREE/SHRUBS TO REMAINLIMITS OF IRRIGATIONLANDSCAPE EDGERALL LANDSCAPE BEDS TOHAVE SHREDDEDHARDWOOD MULCH ELEVATION - MAIN STREET ELEVATION - LAKE SIDE ELEVATION - MAIN STREET ELEVATION - LAKE SIDE