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HomeMy WebLinkAbout2016-03-08 PACKET 04.02.A. TIMOTHY J. KUNTZ DANIEL J. BEESON *KENNETH J. ROHLF STEPHEN H. FOCHLER JAY P. KARLOVICH ANGELA M. LUTZ AMANN *KORINE L. LAND *DONALD L. HOEFT DARCY M. ERICKSON DAVID S. KENDALL BRIDGET McCAULEY NASON TONA T. DOVE BRADLEY R. HUTTER HAROLD LEVANDER 1910-1992 ARTHUR GILLEN 1919-2005 MEMO ROGER C. MILLER 1924-2009 * ALSO ADMITTED IN WISCONSIN ALSO ADMITTED IN NORTH DAKOTA ALSO ADMITTED IN MASSACHUSETTS ALSO ADMITTED IN OKLAHOMA TO: President Bailey and EDA Commissioners FROM: Kori Land, City Attorney DATE: February 29, 2016 RE: Resolutions for Grove Plaza Area The Grove Plaza area is undergoing significant redevelopment which will involve the conveyance of some of the properties. In order to clear title prior to the upcoming closings, it is necessary for the EDA to terminate certain approvals pertaining to the original development of the Home Depot and Rainbow parcels and to transfer responsibility to the new ownership. Attached you will find the following Resolutions to accomplish providing clear title: 1. A Resolution Certifying Completion of a Development Contract and Termination of a Development Contract This was a private development contract between Grove-Rainbow and Home Depot that required Grove-, as the successor in interest to Home Depot, has the authority to execute this termination. The site work has been performed and any lingering obligations are no longer relevant. 2. A Resolution Certifying the Completion of a Contract for Private Development and Termination of Contract for Private Development (As Amended) This was the Development Contract between Grove-Rainbow and the EDA to construct the Rainbow building and perform other improvements. Grove-Rainbow has met all of its obligations under this development contract and in order to clear title, it should be deemed complete and the contract should be terminated. 3. A Resolution Amending the Assessment Agreement for the HyVee Property HyVee has agreed to the terms of the existing Assessment Agreement that was originally the responsibility of Grove-Rainbow as part of the Rainbow development. This amendment merely reflects the new ownership and the new legal description of the HyVee parcel and ensures that the City will still capture its expected TIF projections. -451--450-7384 OFFICE ALSO LOCATED IN SPOONER, WISCONSIN 4. A Resolution Amending the Assessment Agreement for the Grove-Rainbow Property Grove-Rainbow has agreed to the terms of the existing Assessment Agreement that was originally the responsibility of Home Depot. This amendment merely reflects the new ownership and the new legal description of the Home Depot parcel and ensures that the City will still capture its expected TIF projections. RECOMMENDATION: Approve Resolutions 2 ECONOMIC DEVELOPMENT AUTHORITY CITY OF COTTAGE GROVE WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. __________ A RESOLUTION CERTIFYING THE COMPLETION OF A DEVELOPMENT CONTRACT AND TERMINATION OF A DEVELOPMENT CONTRACT WHEREAS, Grove-Rainbow, LP (hereinafter Grove Rainbow), and Home Depot, June 12, 2002 (the Development Agreement) and recorded a Memorandum of Development Agreement dated as of June 12, 2002 (the Memorandum of Development Agreement) affecting the property owned by Home Depot and legally described as Lot 1 and Lot 2, Block 1, nd Grove Plaza 2 Addition -Rainbow to perform certain of Development Agreement was recorded on June 12, 2002 as Document No. 3243184 in the office of the County Recorder in Washington County, Minnesota; WHEREAS, Grove Rainbow and Home Depot agreed that upon completion of the Site Work, Home Depot would file a termination of the Memorandum of Development Agreement, terminating Grove-Rainbow's obligation under the Development Agreement except as to its obligations regarding the construction of additional parking as set forth in Section 13 of the Development Agreement. WHEREAS, Grove Rainbow completed the Site Work and, on November 12, 2003, Grove Rainbow and Home Depot recorded a Termination of the Memorandum of Development Termination of the Memorandum of Development Agreement No. 3400998 in the office of the County Recorder in Washington County, Minnesota, which Termination of the Memorandum of Development Agreement terminated Grove Rainbow's regarding the construction of additional parking as set forth in Section 13 of the Development Agreement (and Section 9 of the Memorandum of Development Agreement). WHEREAS, on November 4, 2015, the Cottage Grove Economic Development Cottage Grove nd EDA1, Grove Plaza 2 Lot 2 WHEREAS, Depot, all of the rights of Home Depot in the Development Agreement, the Memorandum of Development Agreement and the Termination of the Memorandum of Development Agreement inured to the benefit of the Cottage Grove EDA as the successor and assign of Home Depot to Lot 2. 1 WHEREAS, the undersigned acknowledge and agree that Grove Rainbow has performed its remaining obligations regarding the construction of additional parking as set forth in Section 13 of the Development Agreement (and Section 9 of the Memorandum of Development Agreement) and all other obligations of Grove Rainbow that may have existed in the Development Agreement, the Memorandum of Development Agreement and the Termination of Development Agreement. WHEREAS, the undersigned acknowledge and agree that the Development Agreement, the Memorandum of Development Agreement and the Termination of Development Agreement shall be terminated by recording this Certificate of Completion and Termination of Development Agreement due to the full performance of the obligations by Grove Rainbow as provided in the preceding paragraph. WHEREAS, the undersigned acknowledge and agree that, to the extent that there were obligations remaining for the owner of Lot 2 under the Development Agreement, the Memorandum of Development Agreement and the Termination of Development Agreement that the Cottage Grove EDA, as owner of Lot 2, has performed all other obligations of the owner of Lot 2 that may have existed in the Development Agreement, the Memorandum of Development Agreement and the Termination of Development Agreement. WHEREAS, the undersigned acknowledge and agree that the Development Agreement, the Memorandum of Development Agreement and the Termination of Development Agreement shall be terminated by recording this Certificate of Completion and Termination of Development Agreement due to the full performance of the obligations by the Cottage Grove EDA as provided in the preceding paragraph. NOW THEREFORE, be it resolved by the Board of Commissioners of the City of Cottage Grove Economic Development Authority as follows: 1.With respect to the Property, all Site Work and all other obligations of Grove Rainbow that may have existed in the Development Agreement, the Memorandum of Development Agreement and the Termination of Development Agreement have been completed; 2.With respect to the Property, due to the performance of Grove Rainbow as provided in paragraph 1 above, the Development Agreement, the Memorandum of Development Agreement and the Termination of Development Agreement shall be, and hereby are, terminated; 3.With respect to the Property, all obligations of the Cottage Grove EDA, as the owner of Lot 2, that may have existed in the Development Agreement, the Memorandum of Development Agreement and the Termination of Development Agreement have been completed; 4.With respect to the Property, due to the performance of the Cottage Grove EDA, as the owner of Lot 2, as provided in paragraph 3 above, the Development Agreement, 2 the Memorandum of Development Agreement and the Termination of Development Agreement shall be, and hereby are, terminated; 5.The Washington County Recorder is hereby authorized to accept for recording and to record the filing of this instrument, to be a conclusive determination of the termination of the Development Agreement, the Memorandum of Development Agreement (Document No. 3243184) and the Termination of Development Agreement (Document No. 3400998); and 6.The President and Executive Director are authorized to execute all documents to effectuate and record this Resolution. Passed this day of , 2016. Myron Bailey, President Charlene R. Stevens, Executive Director 3 ECONOMIC DEVELOPMENT AUTHORITY CITY OF COTTAGE GROVE WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. __________ A RESOLUTION CERTIFYING THE COMPLETION OF A CONTRACT FOR PRIVATE DEVELOPMENT AND TERMINATION OF CONTRACT FOR PRIVATE DEVELOPMENT (AS AMENDED) WHEREAS, in or about May 2002, the developer, Grove-Rainbow, L.P. entered into a Contract for Private Development pertaining to property legally described as Lot nd 1, Block 1, Grove Plaza 2 WHEREAS, the Contract for Private Development was recorded with the Washington April 3, 2003 as Document No. 3331064. WHEREAS, the Contract for Private Development was amended by that certain Amendment to Contract for Private Development, dated May 14, 2004, and recorded with the May 28, 2004 as Document No. 3443747. WHEREAS, the Economic Development Authority for the City of Cottage Grove has determined that the Developer has performed all building construction and other physical improvements specified to be done and made by the Developer and that the Developer has completed the covenants and conditions in the Contract for Private Development, as amended, relating to the completion of the Minimum Improvements with respect to the Subject Property. WHEREAS, the Economic Development Authority for the City of Cottage Grove has determined that, with respect to the Subject Property, due to the performance of the Developer, as provided in the preceding paragraph above, the Contract for Private Development (as Amended) shall be terminated. NOW THEREFORE, be it resolved by the Board of Commissioners of the City of Cottage Grove Economic Development Authority as follows: 1.With respect to the Subject Property, all building construction and other physical improvements specified to be done and made by the Developer have been completed and the above covenants and conditions in said Contract for Private Development have been performed by the Developer therein; 2.With respect to the Subject Property, due to the performance of Developer as provided in paragraph 1 above, the Contract for Private Development (as Amended) shall be, and hereby is, terminated; 1 3.The Washington County Recorder shall be authorized to accept for recording and to record the filing of a Certificate of Completion and Termination of Contract for Private Development (as Amended), to be a conclusive determination of (i) the termination of the covenants and conditions relating to completion of the Minimum Improvements with respect to the Subject Property and (ii) the termination of the Contract for Private Development (as Amended); document numbers 3331064 and 3443747, respectively; and 4.The President and Executive Director are authorized to execute all documents to effectuate and record this Resolution. Passed this day of , 2016. Myron Bailey, President Charlene R. Stevens, Executive Director 2 ECONOMIC DEVELOPMENT AUTHORITY CITY OF COTTAGE GROVE WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. __________ A RESOLUTION AMENDING THE ASSESSMENT AGREEMENT FOR THE HYVEE PROPERTY WHEREAS and Grove- - Washington County, Minnesota, which concerns property legally descri WHEREAS, York limited partnership (predecessor in interest to Grove-Rainbow in and to the Development Agreement dated May 17, 1996, recorded on July 2, 1996, as Document No. 892566 in Washington County, Minnesota, as amended by (i) Amendment to Assessment Agreement dated as of April 16, 1997, by and among the City, Grove-Rainbow and the Assessor, recorded on April 23, 1997, as Document No. 929114 in Washington County, Minnesota, (ii) Assessment as of June 12, 2002, by and among the EDA, Grove-Rainbow and the Assessor, recorded on June 12, 2002, as Document 3243182 in as of May 31, 2002, by and among the EDA, Grove-Rainbow and the Assessor, recorded on April 30, 2003, as Document No. 3331063 in Washington County, Minnesota, and (iv) Amendment to Assessment Agreement and Assessor's Certificate, dated January 13, 2004, recorded May 28, 2004 as Document No. 3443746 ; in order to establish minimum market values for the Development Property and the Minimum Improvements to be constructed thereon, pursuant to Minnesota Statutes, section 469.177, Subd. 8; and WHEREAS , the Development Property has been re-platted as part of the redevelopment -Platted Development WHEREAS , in 2016, subsequent to the filing of the plat, Grove-Rainbow sold the Re- Platted Development Property to Hy-Vee; and WHEREAS, the EDA, Hy-Vee and the Assessor hereby agree that the legal description of the Development Property attached to Original Assessment Agreement must be amended to reflect the legal description in the new plat. NOW THEREFORE, be it resolved by the Board of Commissioners of the City of Cottage Grove Economic Development Authority that the President and Executive Director of EDA are authorized to execute all documents necessary to effectuate and record the amendment to the Original Assessment Agreement after the new plat has been filed. Passed this day of , 2016. Myron Bailey, President Charlene R. Stevens, Executive Director ECONOMIC DEVELOPMENT AUTHORITY CITY OF COTTAGE GROVE WASHINGTON COUNTY STATE OF MINNESOTA RESOLUTION NO. __________ A RESOLUTION AMENDING THE ASSESSMENT AGREEMENT FOR THE HOME DEPOT PROPERTY WHEREAS , on June 12, 2002, the Cottage Grove Economic Development Authority and Grove-Rainbow- entered into a Contract for Private - Rainbow in Washington County, Minnesota, which property is legally described as Lot 1, Block ndnd 1, Grove Plaza 2 WHEREAS became the owner of certain real property in WHEREAS , the Home Depot Property is contiguous to the Grove-Rainbow Property; and WHEREAS York limited partnership (predecessor in interest to Grove-Rainbow in and to Lot 1, Block 1, nd Grove Plaza 2 into an Assessment Agreement dated May 17, 1996, recorded on July 2, 1996, as Document No. 892566 in Washington County, Minnesota, as amended by (i) Amendment to Assessment Agreement dated as of April 16, 1997, by and among the City, Grove-Rainbow and the Assessor, recorded on April 23, 1997, as Document No. 929114 in Washington County, Minnesota, which affected the Home Depot Property; and WHEREAS , the City, Home Depot, and the Assessor entered into an Assessment Home Depot and the Assessor, recorded on June 12, 2002, as Document 3243181 in Washington ; in order to establish minimum market values for the Home Depot Property and the Minimum Improvements to be constructed thereon, pursuant to Minnesota Statutes, section 469.177, Subd. 8; and WHEREAS , on November 4, 2015, the Authority purchased the Home Depot Property from Home Depot; and WHEREAS , in 2016, the Home Depot Property has been re-platted as part of the redevelopment of the Home Depot -Platted WHEREAS , in 2016, subsequent to the filing of the plat, the Authority sold the Re- Platted Development Property to Grove-Rainbow; and WHEREAS, the EDA, Grove-Rainbow and the Assessor hereby agree that the legal description of the Development Property attached to Original Assessment Agreement must be amended to reflect the legal description in the new plat. NOW THEREFORE, be it resolved by the Board of Commissioners of the City of Cottage Grove Economic Development Authority that the President and Executive Director of EDA are authorized to execute all documents necessary to effectuate and record the amendment to the Original Assessment Agreement after the new plat has been filed. Passed this day of , 2016. Myron Bailey, President Charlene R. Stevens, Executive Director