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HomeMy WebLinkAbout2003.06.24 PACKET A CITY OF COTTAGE GROVE • ECONOMIC Secretary DEVELOPMENT AUTHORITY AGENDA JUNE 24, 2003 7:30 A.M. 1. Call to Order 2. Roll Call 3. Business Items A. Conveyance of Gateway North Property • Conduct Public Hearing • Consider Resolution Authorizing the Transfer of Real Property 5. Miscellaneous Business Items 6. Adjourn 1. Next Meeting Date: July 8, 2003 • G:\Economic Development\E D A\Agendas\2003\June 24 Special.doc CITY OF COTTAGE GROVE MINNESOTA • To: EDA Members From: Michelle A. Wolfe, Assistant City Administrator Date: June 19, 2003 Subject: Conveyance of Gateway North Property BACKGROUND The City Attorney has advised staff that it is necessary to hold a public hearing and approve land sales by resolution. As the EDA is aware, a number of land exchanges are occuring as part of the Gateway North redevelopment project. DISCUSSION Attached is a resolution authorizing land transfers. The resolution contemplates three separate conveyances to three different entities. The three sales are: • 1) The EDA will convey Lot 2, Block 2 of the proposed Gateway North First Addition to US Bank. In return, US Bank will convey Lot 1, Block 2 of the proposed plat to the EDA. This was contemplated by the purchase agreement previously approved by the EDA. Although US Bank already owns most of Lot 2 and immediately prior to the transfer the EDA will own only a small portion of that lot, the use of the legal description for the entire lot is recommended by the city attorney and the city's title company. The warranties under the deed are restricted to only that portion owned by the EDA. Similarly, US Bank will deed all of Lot 1 to the EDA even though it owns only a portion of that lot. 2) The EDA will convey various outlots and the fee title to city streets to the City. In exchange, the city will be conveying its interest in Lot 1 to the EDA. The City's ownership interest in Lot 1 primarily consists of fee interests in portions of old East Point Douglas right of way. 3) The EDA will convey Lot 1, Block 2 to Kohl's. This conveyance is contemplated by the development agreement previously approved by the EDA. PROCESS The public hearing was duly noticed in the local publication per statute. On June 24, the EDA shall open the public hearing and take public comment. Upon conclusion of the public hearing, the EDA can discuss the resolution, and then take action on the resolution. • RECOMMENDED ACTION Conduct the public hearing, hold discussion, then approve the attached resolution. • RESOLUTION NO. 03- O A RESOLUTION AUTHORIZING THE TRANSFER OF REAL PROPERTY WHEREAS, the Cottage Grove Economic Development Authority (the "EDA") is the owner of certain real property lying within the proposed plat of GATEWAY NORTH FIRST ADDITION, legally described on the attached Exhibit A(the"Property"); and WHEREAS, in July 2001, the EDA entered into a development agreement with Kohl's Department Stores,Inc. ("Developer"); and WHEREAS, in December 2002, the EDA entered into a purchase agreement with U.S. Bank National Association("U.S. Bank") and the City of Cottage Grove("City"); and WHEREAS, in March 2003, the EDA entered into a purchase agreement with 1501 Partnership("1501); and WHEREAS, the above agreements are hereinafter collectively referred to as the ("Agreements"); and • WHEREAS, the Agreements require the EDA to transfer certain real property lying within the proposed plat of GATEWAY NORTH FIRST ADDITION to U.S. Bank, the Developer and 1501; and WHEREAS, the City requests that the EDA convey to the City the fee title to Hardwood Avenue as dedicated in the plat of GATEWAY NORTH FIRST ADDITION; and WHEREAS, Minnesota Statutes, section 469.105, requires that transfer of the Property be approved following a public hearing; and NOW, THEREFORE, BE IT RESOLVED by the Cottage Grove Economic Development Authority as follows: 1. Transfer of a portion of the Property by the EDA to U.S. Bank is hereby approved. 2. Transfer of a portion of the Property by the EDA to Kohl's Department Stores, Inc. 3. Transfer of a portion of the Property by the EDA to 1501 Partnership. 4. Transfer of a portion of the Property by the EDA to the City of Cottage Grove. 5. EDA staff and consultants are directed and authorized to take any additional steps • necessary or convenient in order to effect this transfer. NKE-233331 v1 CT165-18 • Passed this 24th day of June, 2003. President ATTEST: Executive Director G:\Economic Development\2001 Leads\80th Street Redevlopment\Land Conveyance\EDA&US Bank.DOC • • NKE-233331 vl CT165-18 • LEGAL DESCRIPTION Lot 1, Block 1, (of the proposed plat of)Gateway North First Addition Lot 1,Block 2, (of the proposed plat of) Gateway North First Addition Outlots A,B, C,D and E,(of the proposed plat of)Gateway North First Addition Together with Hardwood Avenue South and 80th Street South as dedicated on the proposed Plat of Gateway North First Addition Lot 2,Block 2 of the proposed plat of Gateway North First Addition owned by U. S. Bank • • NKE-233331v1 CT165-18