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Home My WebLink About4.a. Repairs Inc. Redevelopment: Progree Report t CITY OF ROSEMOUNT EXECIITIVE STJNIl�IARY FOR ACTION PORT AUTHORITY COMMISSION MEETING DATE: SEPTEMBER 6, 1994 AGENDA ITEbi: REPAIRS, INC. REDEVELOPMENT AGENDA SECTION: OLD BUSINESS PREPARED BY: JOHN MILLER, AGENDA NO. ECONOMIC DEVELOPMENT COORDINATOR 4 . A. ATTACFIDZENTS: DRAFT "PRELIMINARY DEVELOPMENT APPROVED BY: AGREEMENT° Attached for your review is the revised '!preliminary development agreement" for Dr. Kurt Walter-Hansen' s redevelopment of the Repairs Inc. site. The draft is the result of a revision by Stephen Bubal of the original "commitment/development agreement" completed by former legal counsel, Mike Miles . A copy of the revision has been given to Dr. Kurt Walter-Hansen for his review. A meeting with Mr. Bubal, Dr. Walter-Hansen, Chairperson Carroll, and Mr. Wasmund is scheduled for the morning of September 6th. An update of the progress in completing the redevelopment will be available at the port authority meeting. RECObIIKENDED ACTION: None. Discussion item. PORT AiJTHORITY ACTION: HOLMES & GRAVEN CflARTERED STEPHEN J. BUBUL 470 Plllabur�Center,Minneapolis,MlaneeMa 55402 Attomey at Law Telephone(612)337•9300 Direct Dial(612)337-9228 Facafmile(612)337-9310 August 29, 1994 John Miller Ron Wasmund Economie Development Coordinator Public Works Director City of Rosemount City of Rosemount P.O. Box 510 P.O. Box 510 Rosemount, MN 55068-0510 Rosemount, MN 55068-0510 RE: Hanson Agreement Dear John and Ron: Enclosed is a draft Preliminary Development Agreement for the Hanson development. This incorporates the substance of the draft you sent me, but, as we discussed, recasts it as a preliminary agreement that will lead to a definitive contract. Once Dr. Hanson has provided enough information to estimate the tax increment, the formal redevelopment contract can be drafted. Let me know if you have any questions or comments. Very � ly�ours, , � � , � ��,;�� St p n J. Bubul enc. SJH75264 R8230-2 PBELINIINARY DEVIIAPME1�iT AGREIIUIE�iT THIS AGREEMENT, dated this day of , 1994 by and between the Rosemount Port Authority (the "Authority"), a public body corporate and politic, and Dr. Kurt Walter-Hanson ("Developer") : RECITALS WHEREAS, the Authority owns certain property (the "Property") within the City of Rosemount (the "City"), a deseription of which is attached as Exhibit A and WHEftEAS, the Authority desires to cause the Property to be developed in a mauner consistent with the City's downtown business community; and WHEREAS, the Developer has submitted a proposal and specifications for construction of a combination veterinary clinic and office building (the "Development") to be constructed on the Property, a description of which is attached as Exhibit B; and WHEREAS, the City owns certain property (the "Parking Property"), a description of which is attached as Exhibit C, and which is needed to develop parking facilities related to the Development; WHEREAS, the Authority has determined that it is in Authority's best interest that Developer be designated sole Developer of the Property during the term of this Agreement; and WHEREAS, the Authority and Developer are willing and desirous to undertake the Development if (i) a satisfactory agreement can be reached regarding the Authority's commitment for public costs necessary for the Development; (u) satisfactory mortgage and equity financing, or adequate cash resources, for the Development can be secured by Developer; and (iii) the economic feasibility and soundness of the Development and other necessary preconditions have been determined to the satisfaction of the parties; and WHEREAS, the Authority is willing to evaluate the Development and work toward all necessary agreements with Developer if Developer agrees to reimburse the Authority for its costs if the Development is abandoned or necessary agreements are not reached under the terms of this Agreement. NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations set forth herein, the parties agree as follows: 1. Negotiations between the parties shall proceed in an attempt to formulate a definitive development contract ("Contract") based on the following terms: (a) The Authority will convey the Property to the Developer by quit claim deed for the sum of $1.00, conditioned on satisfaction of all conditions specified in the Contract, which will include evidence that Developer has adequate financing for the Development and construction plans for the Development have been approved by the Authority and the City. The deed for the Property will be subject to a right of reverter in favor of the Authority until the Development is completed, permitting the Authority to reenter and 8JH75251 A8230-2 1 ' �� :.... ,e) In addition to the conveyance of the Property and S��arking Property, the Aut 'ty will reimburse a portion of the Developer's-costs in connection with the Developmen m tax increments to be generated by the Development. The amount of such assistanc ' 1 be subject to the-amount of tax increment expected to be generated by the Deve gnqe•n�he`eligibility of costs for reimbursement under Minnesota Statutes, Section�6'9:�174 0 . , 'nistrative fee to be retained by the Authority in the,,,ax�ount of ten percent of the tax in .generated from the Development, , `at the Authority's option an amount of tax increment retained by the Author' to reimburse the Authority for the value of the Property and the Parking perty. The amount, timing and other terms and conditions of tax incre , t assistance will be specified in the Contract. 2. It is the intention of the parties that this Agreement (a) documents the present understanding and commitments of the parties and (b) will lead to negotiation and execution of a mutually satisfactory Contract for the Development prior to the termination date of this Agreement. The Contract (together with any other agreements entered into between the parties hereto contemporaneously therewith) when executed, will supersede all obligations of the parties hereunder. 3. During the term of this Agreement, Developer agrees to submit to the Authority such information as the Authority reasonably requires in order to evaluate the potential tax increment to be generated and the financial feasibility of the Development, and the Authority agrees to proceed to seek all necessary information with regard to the anticipated public costs associated with the Development, and to estimate the Authority's level and method of financial participation in the Development and develop a financial plan for the Authority's participation. 4. It is expressly understood that execution and implementation of a Contract shall be subject to: (a) A determination by the Authority that its undertakings are � feasible based on (i) the projected tax increment revenues and any other revenues designated by the Authority; and (ii) the purposes and objectives of the Rosemount Redevelopment Plan; and (b) A determination by Developer that the Development is feasible and in the best interests of the Developer. 5. This Agreement is effective for a term ending 60 days from its date, unless extended by mutual written agreement of the parties. 6. This Agreement may be terminated upon 10 days' written notice by the Authority to Developer if: (a) an essentisl precondition to the execution of a Contract cannot be met; or (b) an impasse has been reached in the negotiation of any material term or condition of this Agreement. If the Authority terminates the Agreement under this Section, Developer shall remain liable to the Authority for costs reasonably incurred by the Authority in connection with the Development through the date of termination. Such costs inelude all costs SJB75251 as2ao-a 3 IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and the Developer has caused this Agreement to be duly executed as of the day and year first above written. DEVELOPER R.OSEMOUNT PORT AUTHOftITY By: Kurt Walter-Hanson President By: Executive Director THIS INSTRUMENT WAS DRAFTED BY: Holtnes & Graven, Chartered 470 Pillsbury Center Minneapolis, MN 55402 (612) 337-9300 SJH75251 aszso-a 5 EXHIBIT B DESCBIPTION OF DEVELOPMENT 8JH75251 R3230-2 7