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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