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Home My WebLink About6.g. CMC Hearland Partners Assignment CITY OF ROSEMOUNT EXECUTIVE SUMMARY FOR ACTION CITY COUNCIL MEETING DATE: March 16, 1999 AGENDA ITEM: CMC Heartland Partners Assignment AGENDA SECTION: Consent PREPARED BY: Dan Rogness, Community Development Director AGEN � 6 � G ATTACHMENTS: City Attorney Letter; CMC Heartland Letter APPROVED BY: CMC Heartland Partners I Limited Partnership is requesting approval from the City Council regarding its assignment to a new entity named CMC Heartland Partners I, LLC (a new limited liability corporation). Assignments require your approval as stated in the Bloomfield PUD and Subdivision agreements. As noted in Attorney LeFevere's letter, staff is recommending approval of this proposed assignment. RECOMMENDED ACTION: MOTION to Approve the Assignment of CMC Heartland Partners I Limited Partnership to CMC Heartland Partners I, LLC Regarding all Agreements for Bloomfield Addition(s). COUNCIL ACTION: 470 Pillsbury Cencer � � 200 South Sixch Saeec , Minneapolis MN 55402 �' (612)337-9300 cdephone , (612)337-9310 fax c H A R T E R E o http://ww�vkennedy-graven.com CH,�RLES L.LEFEVERE Attorney at Law Direct Dial(612)337-9215 email:clefevere@kennedy-graven.com �EC.EIVE� February 24, 1999 � 2 � 1999 Mr. Tom Burt C1TY OF RO�eMOUNT City Adn-�inis�rrato: City of Rosemount 2875 145th Street West Rosemount MN 55068-4997 RE: CMC Heartland Partners I Limited Partnership; Consent to Assignment Dear Tom: By letter to the Mayor, CMC Heartland Partners I Limited Partnership has requested the City to consent to a conversion of the limited partnership which is the developer of the Bloomfield subdivision into a limited liability company. - The request was forwazded to me for my comment. I contacted the legal counsel for CMC to express my concern that the change would involve at least a theoretical elimination of a party which could be held responsible for the acts of the developer, i.e. the general partner in the limited partnership. I was advised by Gary Carlson, Vice President of Heartland Development Corporation, and Gary Saipe, legal counsel for CMC Heartland Partners I Limited Partnership, that the only general P�::'�:.�;CFi}1C �c^.�"�iv��i iS iicai�lailli L�VCIV�7I11CII� lr. OIlJOTaL1011, a i�eiaware corpoiation, anci that that corporation has essentially no assets. Therefore, the City would not be losing a financially responsible party against which it could proceed for the acts of the developer. In a follow-up letter from Mr. Saipe, I was provided with balance sheets for the general partner for December 31, 1997 and 1998, each showing that the corporation had assets of only $1,000. (Copies attached.) Assuming this information to be accurate and complete, there is little reason for the City to refuse to consent to the change in business form. If you wish to have further information, please let me know. If the City is willing to accommodate the developer, I would expect that a simple motion of the City Council would CI.I.-158654 RS220-61 Mr.Tom Burt February 24, 1999 Page 2 of 2 suffice, authorizing the Mayor to sign and transmit to the developer a letter consenting to the conversion of CMC Heartland Partners I Limited Partnership to a Delaware limited liability company,the sole member of which would be CMC Heartland Partners. Very truly yours, C��'�s�-.�_l Charles L. LeFevere � CLL:Ih Enclosures CLL-158654 RS22a61 �MC HEARTLAND PARTNES PHONE N0. : 651 322 6671 Feb. 16 1999 09:22AM P2 1�-C�J1-i�JEI �d�1(�FM FROM CMC-HP t5ales� TIJ !�1E+1�32'�6f�71 P.l%1� f � i � . � � , , . � ; t { : � CMC ' TLAt�D PA�t�'NERS I,Y.IMTIED PA,RTNE Iin' � � � � � id7 RTest�uli�oo Boulev�ed•S�o�S 10•Chica�IDiaois 60661 31 �294-0440 Fax 312-6d3-9397 j ; � aecamber 1, 1998 , . i ; � � ; � The Mo o�ebl! Cathy Husho, Mayor � Ci+Cy o� �oseaioutst • � . . 2875� - !145th� 3�reet . � . � Ro��mo�nt, Mfnneaota 55066 , ' R,e: C�asvorsiot� og CMC� Heartlmnd Partaera I, Limited Partner�hi;p ihto a : , I�I.mited LisbilSty'Company . Dear de�ae l��yors : , , . � C H�3trtlanfl Pxi�tne�m I, Lit�ited Partnerahip the "Partn �rshfp"�� , ' � �rbich Jis t�ie ow.ct�r �cf, �nd is in the proce�� f develop�ng,' the � : � apprax�m�it�ly 276-acro parcel (the "8ubdiviaio ) it� Rosemount, � Minnea ta kao�rn aa t�e gloamfield . subdivis3on, uou d lilca to= �o�►v��t . � � ft�eli�into a Delawa�s.e lisnited liability comp�ny ( he "New LI,C'�f, the ; • solo m�mber of v�ich would bo cMc xaarelsr.d aartner ("CI�C"), which is • Ct2=sent#ly. the sole lfm�ted �a�rtiner in the Partne=sh p. The cqnversion of t}�e' P'�Lnership i�to the NeW LLC would en8bl� CMC tb h2��sdlc ti'�C ' devela��taent v� the 3ubcliviaiaa i.n the same �a�nner ( .e., via a� t�holly- ' owned limited ],ia�bii3ty oomgany) as CMC is handling the developmeat of � itS ot mx res3dential, p�rojects through th� couatzy, d aould f�cilitate � rsccrd keeping an th�. part of CMC. � � I cor�r�action r�i�th the deveiopment by the artnership: of� the � . subdiv aioa, the Par�Gnez�hip has •ntered Snto vaYi �is �gro�aw�t� vith . the Ci y oP Res�meu�t ;(.th■ "City") , inclu�ing a Piann c3 Qnit Dev,,elopm■nt '� (PIID) �+,greem�uE, Bloaa�ield (FKA Th� Villages df Ea tvi�W� , da�ed Ju2y . ; 15, 19�5 (the "PVD Agraementry) , and a Subdivisfon Ag emant - gl,�c�omti0id ; A a�d i t i n (t he "S u b d i v i s�on Aqra�n►e n t") , d a t e d J u l y 1, 1 9 9 8. 'P u z a e s a a t ; • � to see ioa 16,J. ef the PL7D Agreamont, the 8artnershi eannot a�sign it8 riyhta ur�der the PUD Agreement without the aritt�n permission of the , city C uacii (the "City Council"� of tho City. uzsuant to� seetion 24.J. ! the 9ubdivision A�rgetaertt, the Partnarshi aannot assign fts rightm�Wadar th� subdivi�ion Agreereert N:thout the u ' tten pertnfs�ien of � tt�s Ci y Council. ' , � • , A�.thouqh the cvnvQrsion ot the partaerehip int the t3ew LLC woule . not t��hitieally it�volv�: aa aa�igtunent by the Partner hip �o the; N+ew LI�C � of the i Pazta�rshi8's rigi�ts unCes the PtTD Aqtee�t�t ot the 3ub�divi�siori ' Agreemcnt, and thus s�rouid r►ot reeuire the con�ent o the City Council, ' �he paz�tnership, 3n o,r�r to cempiy with the a�pir�t E the section 16.J. of the j PFJD J,greament and seetioh 24. J. of the �ub ivisioa Ac�reatme�nt, ; 8t�d inl ordeX to av4id 'aay dispute eorieerniAg '�h gro8r�cty of the ': cotrverq ion of the Partnership inte the N�w LLC, w uld Sike �he �city Counci]! �o �orsaally congent te the convarsioa of t e Pnrtnarahip inte � the New 7�LC. I roould appreaiata yoeu taking tn necessary steps, includi��g the placing of the matter on the egende� of he next eneetiin� of ; 'the Ci4�r Council, to have' the City Courseil Rpprov� th Conversion. I�t the event t�iaL Irou need any addikional nforcaa�ion or eay � ; . . i � ; ; . ' I ' . . � , . FROM : CMC HEARTLAND PARTNES PHONE N0. : 651 322 6671 Feb. 16 1999 09:23AM � ' � 12-01-199B 04:1?PM FROM CMC-F� Csales) TO 916123226671 P.03 ; . . ; , � � . � � The Ho �arabia Cat11y 8►s�ho, i�eay'or : : � Dea r 1, 1998 • � � �Piqe 2 . - � � , ; f ; " � � doavm tation frota the Partnership reqardiag tY�e coi�vcraion,, o� thc � � partne sh�ip into th� �w �LLC, plesse �eel =te� to con act ms. • T�ae�X you for yotir attent'lon in thi9 matter. : ' 's . i . • , • i � Very trvly e, � � . � / R . • : � � � � ; � � Gasy Carl9on : Viee Presiden - Dcvelo�iment ef � i . . Fieartland Dmve optneat ccr(�oration � , � . � . . . � � < I : i cc: Law�enee s. Adel#on . R ol9,srd P. Hranditat�er G ry �cott s�ipe , � J e� Lambeth (wia� f�caimile: 6l2/322-6b71) ' C arl�s Iw 8w�r• �vfa tacsimile: 61Z/337-9310) , • � ' ' . 's : ! � , � • l � I . I ' � . • � . s � . ' i ; , � ' } • � � 1 ' i ' � � i � ; f � � . � . , I . ' • � • . i i � I 1 � . I . • . . I . , . � • . . . + � � � � I ; . ' � , , • • • ' � ' TOTAL P,03 K10LDC1FIlES1D1AGRAM.W K4 �ESCENDANTS OF CHICAGO MILWAUKEE CORPORATION DIAGRAM AS OF 30-Dec-98 PUBUC 98.5°.6 PUBUC CLASS A LIMITED 100%COMMON STOCK PARTNERSHIP � INTEREST Heartland 1°h GENERAL HEAR D Technobgy,Ina PARTNERSHIP INTERES PARTNERS,LP. I.D.No.36-1487580 I.D.NO 36-3606475 Heartland Development Detaware Corporation .5°k CLASS B UMfTED OELAWARE LIMITED Corporation PARTNERSHIP. 100%COMMON I.D.No.36-3913235 100°,6 Co�mon Stock A PUBLJCIY TRADED Oelaware Co raton PARTNERSHIP FOR P.G.Design EJectronics.inc 01°�GENERAL FEDERAL INCOME 1°�GE I.D.No 36-4148939 RTNERSHIP INTEREST TAX PARTN RSHIP INTEREST Delaware Co ra6on CMC HEARTLAND PARTNERS 1, 100°.6 Co mon Stock 99°,6 LIMITED PARTNERSHIP Limited I.D.N0.36-3913236 Ze��P• 99•99°!.GE1V Pa DELAWARE UMITED PARTNERSHIP I.D.No.16-1548244 PARTNERS P INTEREST ship BOTH ROSEMOUNT,MN PROPERTIES Delaware Cor oration Interest A PARTNERSHIP FOR FEDERAL INCOME T , MC HEARTLAND PARTNERS CMC HEARTLAND PARTNERS I,LLC, 10 °.6 Sotder Station One,Inc I.D.NO.36-3606608 --�DELAWARE LIMITED LIABILITY COMPANY Com o I.D.No.95-3380147 100°k DELAWARE GENERAL CNW ROSEMOUNT PROPERTY Stock Califomia Cor oration Common PARTNERSHIP A DISREGARDED ENTITY FOR TAX Stoc A PARTNERSHIP FOR 1 °� FEDERAL INCOME TAX. M ber CMC HEARTLAND PARTNERS II,LLC, s ip DELAWARE LIMITED IIABILfTY COMPANY Int ests GOOSE ISLAND,CHICAGO,ILUNOIS A DISREGARDED ENTITY FOR TAX LIFESME COMMUNITIES,LTD. CMC HEARTLAND PARTNERS III,LLC, I.D.NO.36-4116539 DELAWARE LIMITED LIABILITY COMPANY Deiaware Corporation KINZIE STREET,CHICAGO,ILUNOIS Construction Contractor A DISREGARDED ENTITY FOR TAX CMC HEARTLAND PARTNERS IV,LLC, DELAWARE LIMITED UABILITY COMPANY LIFESTYLE CONSTRUCTION COMPANY INC I.D.NO. A DISREGARDED ENTITY FOR TAX Delaware Corporation Constructlon Contractor CMC HEARTLAND PARTNERS V,LLC, DELAWARE LIMITED LIABILIN COMPANY OSPREY COVE,ST.MARY'S,GEORGIA A DISREGARDED ENTITY FOR TAX CMC HEARTLAND PARTNERS VI,LLC, DELAWARE IiMITED LIABILITY COMPANY ORIGINAL ROSEMOUNT,MINNESOTA A DISREGARDED ENTITY FOR TAX CMC HEARTLAND PARTNERS VII,LLC, DELAIN.",RE LINi1TED LiA61LITY CO�LIPANY LONGIEAF,PINEHURST,NORTH CAROLINA Heartland Technology,inc.was named Milwaukee Land Comapny prior to November 1,1997. A D�SREGARDED ENTITY FOR TAX The 173 acre o�ginal Rosemount,Minnesota properry is planned to be transferred to CMC Heartland Partne ,VI,LLC The 226 acre Rosemount,Minnesota properry purchased from the CNW is planned to be transferted to CM Heartland Partners I,LLC �� .{.�e�-1-1� ��rs V l LL� L� � 0.�1.�� 1-�-�-�- l� �i 1�-E-� ��,�� CMC HEARTLAND PARTNERS I, LIMITED PARTNERSHIP 547 West Jackson Boulevard•Suite 1510•Chicago,Illinois 60661 312•294-0440 Fax 312•663-9397 January 4, 1998 VIA OVERNIGHT DELIVERY Mr. Charles LeFevere Kennedy & Graven, Chartered 470 Pillsbury Center Minneapolis, Minnesota 55402 Re: Heartland Development Corporation Dear Charlie: Enclosed are balance sheets, dated as of Deceml�er 31, 1997 and December 31, 1998, respectively, of Heartland Development Corporation, a Delaware corporation, the sole general partner in CMC Heartland Partners I, Limited Partnership (the "Partnership") , a Delaware limited partnership, which is the owner of the Bloomfield subdivision in Rosemount, Minnesota. Please feel free to call me with any questions you may have concerning the conversion of the Partnership to a Delaware limited liability company, the sole member of which will be CMC Heartland Partners, a Delaware general partnership. For your convenience, I have enclosed a �chart showing the relationships among CMC Heartland Partners and its,,' ffiliates. i Very�f r yours� , � Gary S t S 'pe ' Coun 1 cc: Lawrence S. Adelson Richard P. Brandstatter Gary Carlson HEARTLAND DEVELOPMENT CORPORATION 547 WestJackson Boule�•ard •Suite 1510•Chicago.Illinois 60661 3�z•�94'04�O Direct Mail To:P.O.Box 620�.Chicago,Illinois 60680-6205 FAX 312.663-9397 Balance Sheet December 31, 1997 Assets Cash $ 1,000.00 Total Assets $ 1,000.00 Liabilities & Stockholder's Eauitv Common Stock $ 1.000.00 Total Liabilities & S. E. $ 1,000.00 . � � Richard P. Brandstatter Vice President-Finance Secretary and Treasurer HEARTLAND DEVELOPMENT CORPORATION 5�7 West Jackson Boulevard •Suite I510.Chicago,Illinois 60661 312•29�3-0440 Direct Mail To:P.O.Box 620� •Chicago,Illinois 60680-6205 FAX 3l2•663-9397 Balance Sheet � December 31, 1998 Assets Cash $ 1,000.00 Total Assets $ 1,000.00 Liabilities & Stockholder's Equitv Common Stock $ 1,000.00 Total Liabilities & S. E. $ 1,000.00 . � Richard P. Brandstatter Vice President-Finance Secretary and Treasurer