HomeMy WebLinkAboutResolution 93-09RESOLUTION NO. 93-09
THE CITY OF COLUMBIA HEIGHTS, MINNESOTA
RESOLUTION CONDITIONALLY APPROVING ABATEMENT
OF ESTIMATED MARKET VALUE FOR CERTAIN
REAL PROPERTY IN THE CITY
BE IT RESOLVED by the City Council of the City of Columbia Heights, Minnesota
(the "City" ) as follows:
Section 1. Recitals.
1.01. The Housing and Redevelopment Authority in and for the City of
Columbia Heights ("Authority") has undertaken the Downtown C. B. D. Revitalization
Project ("Project") located in the City, pursuant to Minnesota Statutes, Sections
469. 001 to 469.047.
1.02. The Authority previously entered into a Contract for Private
Redevelopment and an Assessment Agreement with Terry Evenson related to
development of an office building located within the Project at 3989 Central Avenue
N.E. and known as the Columbia Heights Business Center ("CHBC").
1.03. Zaidan Holdings, Inc. ("Redeveloper") has acquired the CHBC from
Terry Evenson and has assumed the obligations of Terry Evenson under the original
Assessment Agreement with respect to the CHBC.
1.04. Property taxes on the CHBC are delinquent beginning with the second
half of taxes payable in 1990 and subsequently.
1.05. Sterling Capital Resources, Inc. ("Sterling Capital") has proposed to
acquire the CHBC from the Redeveloper, and in connection with that acquisition has
requested that the Authority agree to modify certain terms of the Assessment
Agreement in order facilitate payment of delinquent taxes and improve the future
prospects for the CHBC.
1.06. The Authority has considered the Sterling Capital proposal and is in the
process of negotiating terms and conditions under which the Authority would consent
to the modification of the Assessment Agreement.
1.07. After consultation with Anoka County, the Authority has determined
that the proposed modification of the Assessment Agreement would require an
abatement of estimated market value pursuant to Minnesota Statutes, Section
375.192.
Section 2. Abatement Conditionally Approved; Terms and Conditions.
2.01. The City Council has determined that it is in the best interest of the
Authority, the City and its residents that the Authority approve the abatement of
estimated market value on the CHBC in accordance with the terms and conditions set
forth herein.
2.02. The City Council hereby approves abatement of estimated market value
of the CHBC, and real property taxes together with penalties and interest thereon
8J~48312
r,'r. 160-70
- Resolution No. 93-09
associated with such market value abatement, for the tax assessment
years 1990, 1991, and 1992; provided that such approval is
conditioned upon:
(a) compliance by Sterling Capital with all the requirements
of Minnesota Statutes, Section 375.192; and
(b) execution by the City Council and Sterling Capital of an
amendment to the Assessment Agreement reducing the minimum
market value of the CHBC for the above-referenced assessment
years under terms satisfactory to the Authority; and
(c) certification of the amended Assessment Agreement by the
Anoka County Assessor;
and further provided that the amount of the abatement for each year
shall be as specified in the modified Assessment Agreement.
2.03. The City hereby requests Anoka County to assist the
Authority and Sterling Capital in determining estimated market
values for the purposes of the amended Assessment Agreement
and the related abatement.
2.04. Neither the City nor the Authority shall be obligated to
approve and enter any amendment to the Assessment Agreement
with Sterling Capital or the Redeveloper, and nothing in this
resolution shall be construed to require the Authority or the
City to approve any type of assistance to any person or entity
in connection with the CHBC, nor shall this resolution be
construed as vesting in any person or entity any cause of
action against the Authority or the City arising from any
failure to or refusal of the Authority or the City.to approve
a modified Assessment Agreement for the CHBC or otherwise
assist that person or entity in connection with the CHBC.
2.05 The City Manager is authorized and directed to transmit
a certified copy of this resolution to Anoka County, and to
transmit an executed copy of the amended Assessment Agreement
for the CHBC when and if such amendment is entered into.
Approved by the City Council of the City of Columbia Heights this
8th day of February, 1993.
Offered by:
Seconded by:
Roll call:
~o'~Anne Student ,~-Counci I
Murzyn
Peterson
Clerkin, Ruettimann, Peterson, Murzyn - aye
Nawrocki - nay ~_~, ~ ~,
Mayor Donald J/'M~urzyn~/Jr.
Secretary