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CITY OF COLUMBIA HEIGHTS
590 40th Avenue N.E.. Colnmhia Heights, MN 55421-3878 (763) 706-3600 TDD (763) 706-3692
Visit Our Website at: www.ci.columhia-heiglils.mn./is
AGENDA
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
May 23, 2006
7:00 p.m., City Hall, Conference Room 1
1. Call to Order/Roll Call
Don Murzyn Jr., President
Patricia Jindra, Vice President
Bruce Kelzenberg, Secretary/Treasurer
Tammera Diehm
Gary L. Peterson
Bruce Nawrocki
Bobby Williams
2. Pledge of Allegiance
CONSENT AGENDA
3. Approve Minutes of March 26, 2006
4. Approve financial report and payment of bills for March and April 2006, Resolution
2006-03.
Motion: Move to Approve the Consent Agenda Items #3 and #4, as listed.
BUSINESS ITEMS
5. Adopt Resolution 2006-04, Sarna Contract for Private Redevelopment
Motion: Adopt Resolution 2006-04, a Resolution Approving a Contract for Private
Redevelopment, including the sale of land, between the Columbia Heights Economic
Development Authority and Sarna's Inc.; and furthermore, to authorize the President
and Executive Director to enter into an agreement for the same.
6. Preliminary Development Agreement between the EDA and Sherman & Associates
Motion: Move to execute the preliminary development agreement between the EDA
and Sherman and Associates, Inc.; and furthermore, to authorize the President and
Executive Director to enter into an agreement for the same.
7. Industrial Park Redevelopment Update
8. Administrative Report
9. Other Business
The next regular EDA meeting will be Tuesday, June 27,2006 at City Hall.
THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCHIM1NA TE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
EQUAL OPPORTUNITY EMPLOYER
ECONOMIC DEVELOPMENT AUTHORITY (EDA)
REGULAR MEETING MINUTES
MARCH 28, 2006
CALL TO ORDER/ROLL CALL
President, Murzyn, Jr. called the meeting to order at 7:08 p.m.
Present:
Don Murzyn Jr., Patricia Jindra, Bobby Williams and Bruce Nawrocki, Tammera
Diehm, Gary L. Peterson and Bruce Kelzenberg
PLEDGE OF ALLEGIANCE
CONSENT AGENDA
Approval of Minutes of January 24. 2006
Financial Report and Pavment of Bills
Move to approve Resolution 2006-02, Resolution of the Columbia Heights Economic
Development Authority (EDA) approving the financial statements for January and Februmy 2006
and approving payment of bills for Janumy and February 2006.
Nawrocki stated he was told the Sarna's had one of the principals of Barna, Guzy working for
them, and that they wouldn't be working for the EDA, that Kennedy and Graven would be, it
looks like a conflict of inter est. Streetar stated Kennedy & Graven is doing the Development
Agreement and Barna, Guzy is representing Sarna's.
Nawrocki stated under Revenue there is approximately $57,000 listed, what is this from.
Streetar stated it was for the Industrial Park permits.
Motion by Diehm, second by Jindra, to adopt the consent agenda items as listed. All Ayes.
Motion Carried.
ITEMS FOR CONSIDERATION
Preliminary Development Al!:reement with Pratt Ordway Properties
Streetar stated the Preliminmy Development Agreement with Pratt Ordway Properties isfor the
redevelopment of the Apache Theatre parcel. Pratt Ordway Properties has partnered with
Comforts of Home Inc. The property closed in September of 2003, the owner of the property,
Mr. Herringer entered into an option agreement with Mr. Len Pratt of Pratt Ordway properties
in August of2004. Pratt is the developer of Silver Lake Village in St. Anthony. Pratt Ordway
Properties, the developer, and Comforts of Home, the builder, have prepared a redevelopment
concept plan, which would include between 45 and 65 assisted living units, with 15 units serving
memory care residents and the second with 45 and 65 independent senior units, where residents
may purchase assisted living services on an al a carte basis. The Preliminary Development
Agreement, if approved, would address any financial assistance that may be necessmy, would
run from today through November and that the developer would provide a $5,000 deposit.
Mr. Hen'inger stated he acquired the property that his father purchased back in late 40 's, it was
originally plotted as 10 properties, built a theatre in Februmy 1969, in 1970 they sold the land
Economic Development Authority Meeting Minutes
March 28, 2006
Page 2 of6
adjoining, which was a Penny's Supermarket, they ran the theatre until 1977 when they sold it to
England Theatre's, then Mann Theatre's, who ran it until 2003. Tom Letness and his partner
Dave felt they could make the theatre work, so they signed afive-year lease in June of 2002,
which lasted until September of 2003. Herringer put up a purchase sign in December of 2003,
received 66 inquiries, with 26 fi"om churches or schools, which would be non-taxable, took down
the sale sign, then Len Pratt discussed purchasing the property and they agreed to sign an option
deal, which was on a month-to-month basis and was extended twice, and will end in August.
Brian Winges stated he is the owner of Comforts of Home, and introduced President, Beth Doce,
his Partner, Wendy Fritz, Matt Frisbie of Frisbie Architects, Inc., and representing Pratt
Ordway, Darrell Gammer. He then played an 8-minute movie on the Comforts of Home
facilities.
Winges stated his company is community based, stafJfocuses on getting to know residents, which
allows them to care for residents longer, keeping seniors out of nursing homes for a much longer
period of time, they try to keep the resident occupancy to a minimum, stated most assisted living
units won't do County contracts, where they try to workfrom the beginning with the County to
provide the best quality care and a more affordable cost to more moderate-income residents.
Nawrocki asked if they were just talking about just the theatre property or the shopping center
also. Streetar stated they are only interested in the theatre property, the map in the packet
identifies other possibilities for the shopping center that another developer is interested in and
has had discussions with Mr. Herringer about.
Nawrocki asked Streetar about his previous statement that financial assistance may be necessary
and wanted to know how much. Streetar stated until the PreliminGlY Development Agreement is
entered into, we won't know what, if any, financing would be needed. Peterson stated we should
keep in mind that eventually the board would be asked to sign a development agreement, which
would layout the costs associated with this project and we would have the option to vote for or
against it.
Matt Frisbie, Frisbie Architects, Inc. explained the two concepts: 1) concept A-I shows Hart
Blvd coming through with access, the building would have porches, the two buildings would face
each other, would need some water retention areas; and 2) concept A-2 would close ofJ Hart
Blvd. entrancefrom 37'hfor some parking, bike paths, possibly line up the streets with 37'h Place
to tie into the local access road.
Nawrocki said he had some concerns with Stinson being closed off. Murzyn Jr. stated that is a
traffic problem area and maybe it would be a good idea to close it off. Fehst stated the City does
have a lot of speeding problems on 37'h Avenue.
Peterson stated ifwe could solve the traffic problem that would be wondelful, has always felt
Hart Lake was under utilized, would like to see a little park with benches and trees there, it could
be an esthetic coming into the City.
Diehm asked if all of the buildings Comforts of Home owns are for seniors or assisted living
Economic Development Authority Meeting Minutes
March 28, 2006
Page 3 of6
units for seniors and what amount would the senior apartments be listed at. Winges stated they
would be market rate senior units, unless the resident requested extra services and that all their
buildings are for seniors.
Wendy Fritz asked Nawrocki what his thoughts were about this idea. Nawrocki stated in looking
at the units, he felt they wouldn't be cheap, but with this kind of unit, they would be the only ones
around the area.
Jindra stated she goes to a cardiac treatment center and there are a lot of people lookingfor this
type of housing, but are having a hard time finding it.
Motion by Peterson, second by Diehm, to Approve the Preliminary Development Agreement
between the Columbia Heights Economic Development Authority and Pratt Ordway Properties.
All ayes. Motion Carried.
Next Steps in the Redevelopment of 39'h and Central
Streetar stated Mark Moser, one of the owners of the Columbia Heights Rental and Mr. Doug
Foss, one of the owners of the Mady's-Foss Bowling Center, was present. Since 2002, this site
was identified by the board as a redevelopment site, staff has completed building inspections,
phase one environmental site assessments, started phase two environmental site assessments,
which would be complete in August, completed real estate andfixture appraisals, relocation
estimates, acquired and demolished the Burger King, toured six other infill redevelopment sites
in the area, and with the help of DSU and Sherman & Associates, prepared 4 redevelopment
concepts. We are at a point where we need to bring a private developer into the mix. There are
two ways to go about this: 1) continue to negotiate with both parties to acquire their property; or
2) partner with a developer to find out what is market feasible for the property. We would like to
recommend working with George Sherman of Sherman & Associates as a development partner.
They have significant and successful experience in both residential and commercial urban infill
redevelopment and have indicated a sincere desire in forming a partnership with the EDA to
redevelop this area.
Streetar stated if he could speak for Mark and Doug, particularly Mark, they have been waiting
since 2002, wondering what and if anything is going to happen with the redevelopment. In
talking with Mark and his business partner, if something could be worked out, their preference
would be to remain at there site until February 2008 and work on some kind of feasible
agreement with the City.
Mark Moser, Columbia Heights Rental stated he obviously would like to stay on that corner
permanently, but does realize the City wants to clean up areas along Central Avenue. Therefore,
they want to stay in the community, and would need a good year to facilitate that kind of process.
What Streetar said is true, we have been hearing since 2002 about a plan coming and nothing
has happened, we just want a decision to be made, they could be out as early as February of
2008, would like to stay on that corner until that time, would incur three times the expenses over
what he is paying at his current location, they would like to move, build a new building, but
would like to see the City work with them on changing the current design guidelines to reflect the
Economic Development Authority Meeting Minutes
March 28, 2006
Page 4 of6
fact that the new building would not be directly on Central Avenue, but behind it and then it
would make it more affordable for them to build on the site.
Streetar stated their current property is considered non-coriforming, as it is a storage facility,
with a conditional use permit for up to 12 vehicles to be stored on the site. Mr. Moser realizes
that he could stay on the site forever but could never expand.
Murzyn Jr. asked if we bring Sherman in, can they do an analysis, some general numbers on
what kind of costs they might need out of TIP. Streetar stated yes, the cost to clean up the
contamination on the site would be determined. One of the methods of removal is capping,
which is where they go down 5 or 6 feet, add a layer of clay and backfill with clean soil for
contamination. For the poor soil correction, we could use grant money as we did for the
Industrial Park.
Nawrocki stated 1) he felt it was difficult for him to believe that complying to the Design
Guidelines would double or triple Moser's costs; 2) in talking about down grading the Design
Guidelinesfor his new building, would hope they would consider the residents in that area; and
3) felt the City hasn't been taking care of the sign problems along Central Avenue and should be
focused on now.
Peterson stated he and Fehst were at a meeting in Little Canada, where the representative ji-om
Roseville stated they tried a first floor commercial with residential above it and it was a flop, so
we certainly don't want to go that route.
Murzyn Jr. stated he thought this was a high priority of the City Council and asked if there were
any other developers interested in the site. Streetar stated there hasn't been anyone. Murzyn Jr.
asked about the developer that wanted to redo the old Bridgeman's restaurant, what happened to
him. Schumacher stated they couldn't get things together.
Peterson stated we made a decision to move forward, he didn't know how we could stop it,
recommended going forth with this project and with Sherman. Williams agreed. Diehm stated
they discussed this to go forth in January, and would like to see if there is a plan that would work
for the site.
Murzyn Jr. directed staff to work with Sherman & Associates and come back to the board with
some numbers and ideas for the site. Streetar stated he would contact Sherman and Associates,
for presentation at the April 25/h meeting.
Nawrocki stated he felt the board should talk to another developer also. Peterson stated we can
work with Sherman & Associates and ifwe aren't comfortable with them, we can always lookfor
someone else.
ADMINISTRATIVE REPORTS
CDBG
Partenheimer stated she attending the CDBG Grant funding meeting at Anoka County today and
Economic Development Authority Meeting Minutes
March 28, 2006
Page 5 of6
was pretty positive the City will be receiving its requested grants. The jinal word should come
soon.
Herital!:e Heil!:hts
Partenheimer stated another meeting of the group was held on March 8th at 7p.m. in the Grand
Central Lofts party room. The committee members heard a detailed market analysis
presentation, which included a summary of current City and neighborhood conditions, reviewed
a summary of their input compiled at thejirst meeting, listened to DSU stajJpresentation of the
13 preliminary goals and strategies for the redevelopment and renewal of the neighborhood and
was able to reword or add goals to the list, reviewed jive land use maps, and during and after
the presentation was able to share their comments on what they liked or disliked about each plan
and ojJered suggestions. The committee will be presenting the next step in a joint meeting with
the City Council at a work session in the near future. Partenheimer stated her and Cher have
been working with the I T. Department and was happy to say that all of the information is
available on the City website.
Nawrocki asked why the board hasn't received any of the documents she was talking about.
Partenheimer stated all the documents are on the City website for review and agreed to print out
the documents for him.
Industrial Park
Nawrocki asked about the quench tanks. Schumacher stated the quench tanks were on the
foundlY site, which was usedfor cooling the steel, was a hydraulic fluid/oil that was a significant
leak, the MPCA said we needed to go down 20 feet and remove all of the oil, it was an L shaped
tank with a pipe on it, Ryland is going to go down an additional 1 0 feet on a voluntary clean up,
which means they would be paying for this because they want to meet higher standards for single
family homes, even though they couldjill it with 10feet of clay and balance with sand and still
meet MPCA standards. Nawrocki asked if he was talking about the Electric Steel property.
Schumacher stated he was. Schumacher stated with the linseed oil found on the site wasn't
regulated by the MPCA, as it isn't a contaminated substance.
Kmart Update
Nawrocki asked what is happening with the Kmart site. Streetar stated Mr. Nedegaard made it
public that he will be bringing documentation before the board this spring for an Axel's
Restaurant on the old Arby's site.
Diehm stated she knows someone that is very involved in redevelopment projects, who asked
about the project, stated that another, very prominent developer in the Twin Cities who does
condos went out on a tour of new condo projects and called him up to see what was up the
project, as he felt it has to be the best value in the Twin Cities, the quality of the product is there,
it was a step above the others, he felt that he realizes it is because of the property conditions
across the street that sales are slow, and that if the City is really serious about cleaning that
area up, it would be some of the best investment anyone could make. Diehm stated this comes
from someone that really knows about real estate investment and should encourage the City to
go forward.
Economic Development Authority Meeting Minutes
March 28, 2006
Page 6 of6
Other Business
Williams asked about the Liquor Store at the LaCaberna site on Central, is there anything
happening. Fehst stated the City is looking at putting the new liquor store on the three
properties, have currently interviewed Kraus Anderson and Welsh for possible project managers,
had appraisals done on some of the properties, would be bringing something to the City Council
sometime soon, anticipating using approximately a million dollars of our fund balance and still
make the $3-500,000 a year on the liquor fimd
Murzyn Jr. stated he wanted to talk to the board about the market value of property going down,
they aren't going down anywhere else, it is a SCalY thing, realized there are a lot of market
factors involved in this figure, but it isn't good, every day he lives in his house, he is loosing
money, we need to do the little things in the City to keep this from happening, and encouraged
the board to keep movingforward with redevelopment. Herringer stated the value when down
and taxes when up. Streetar statedfor an example, at his house in Minneapolis, compared to the
same house in Columbia Heights, his taxes are $600 higher, with the effective tax rate of 1.32
and in Columbia Heights it averages .989.
Fehst stated the Senate voted on the Eminent Domain bill, which wouldn't allow the City to
obtain the property necessary for redevelopment in our City. Streetar stated he has testified foul'
times and our Building Official, Larry Pepin has testified once. The current definition for blight
under Eminent Domain is un-inhabitable, which is too vague. To do something in Heritage
Heights, the only thing we could do if the bill passes, would be to put up a public building.
ADJOURNMENT
Motion by Williams, second by Nawrocki, to adjourn the meeting at 9:01 p.m. All ayes. Motion
Carried.
Respectfully submitted,
Cheryl Bakken
Community Development Secretary
H :\ED Aminutes2006\3 -28-2006
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: May 23, 2006
AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE
NO: DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Financial Report and Payment of Bills BY: Cher Bakken BY:
DATE: Mav 18, 2006
BACKGROUND:
The bound Financial Report for the months of March and April 2006 draft Resolution 2006-03
is attached for review. The enclosed Financial Report lists the Summary (white), the Check
History (Green), the Expenditure Guideline with Detail (blue) and Revenue Guideline with
detail (yellow) for each fund. The reports cover the activity in the calendar (fiscal) year from
January 1 through April 30, 2006.
RECOMMENDATION:
Staff will be available to answer specific questions. If the report is satisfactorily complete, we
recommend the Board take affirmative action to receive the Financial Report and approve the
payment of bills.
RECOMMENDED MOTION:
Move to approve Resolution 2006-03, Resolution of the Columbia Heights Economic
Development Authority (EDA) approving the Financial Statement and Payment of Bills for the
months of March and April 2006.
EDA ACTION:
H:\EDAConsent2006\MarchAprilFin Rep 2006
EDA RESOLUTION 2006-03
RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
(EDA) APPROVING THE FINANCIAL STATEMENT FOR MARCH 2006 AND PAYMENT OF
BILLS FOR THE MONTH OF MARCH AND APRIL 2006.
WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by
Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which
shows all receipts and disbursements, their nature, the money on hand, the purposes to which
the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities;
and
WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's
vouchers or bills and if correct, to approve them by resolution and enter the resoiution in its
records; and
WHEREAS, the financial statement for the months of March and April 2006 and the list of bills
for the months of March and April 2006 are attached hereto and made a part of this resolution;
and
WHEREAS, the EDA has examined the financial statement and the list of bills and finds them to
be acceptable as to both form and accuracy.
NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia
Heights Economic Development Authority that it has examined the attached financial statements
and list of bills, which are attached hereto and made a part hereof, and they are found to be
correct, as to form and content; and
BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the
list of bills as presented in writing are approved for payment out of proper funds; and
BE IT FURTHER RESOLVED this resolution and attachments are to be made a part of the
permanent records of the Columbia Heights Economic Development Authority.
Passed this _ day of
,2006.
MOTION BY:
SECONDED BY:
AYES:
NAYS:
President- Don Murzyn Jr.
Attest by:
Cheryl Bakken, Assistant Secretary
H:\Resolutions2006\EDA2006-03 fin MarchApril2006
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: May 23, 2006
AGENDA SECTION: Business Items ORIGINATING EXECUTIVE
NO: 5 DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM:Adopt Resolution 2006-04, Approving BY: Randy Schumacher BY:
a Contract for Private Redevelopment, DATE: May 19, 2006
Including the sale of land
BACKGROUND: The EDA board authorized staff to work with Sarna Inc. in developing a
Contract for Private Development, for the construction of a restaurant on the South East
corner of University Avenue and 40th Avenue, presently owned by the Columbia Heights EDA.
Due to the complexities associated with this property, e.i. MNDOT frontage road turn back,
site easements, title issues, road vacations, access agreements, utility relocations, off site
improvements for M.E. Global and associated cost sharing, and soil correction and
contamination, this 45 plus page agreement has taken months to complete.
The approved actions taken today on this project are:
. City Council Preliminary Plat Approval
. City Council 151 Reading for the Vacation of Lookout Place
. Planning and Zoning Variance Approval
. City Council Variance Approval
If the EDA board approves this development agreement, the next action issues are at the
Planning Commission level for Final Plat Approval and the City Council for final plat
approvals and 2nd Reading of the Vacation for Lookout Place.
In the Preliminary Development Agreement, the EDA board established a purchase price of
$75,000. The developer requested a credit for environmental and geotechnical soil
correction in the amount of $120,350. The City obtained a Community Development Block
Grant from Anoka County in the amount of $64,000 to offset a portion of the above
mentioned soil corrections. The $56,000 balance would be deducted from the established
$75,000 sale price. The development agreement reflects the final sale price of $18,650.
$120,350
$ 64.000
$ 56,350
$75,000
$56.350
$18,650
Soil Correction Cost
Less CDBG
EDA land Purchase Price
Less Soil Correction Balance
This philosophy for soil correct, write down is consistent with assistance given in the
redevelopment of the Industrial Park.
RECOMMENDATION: the board Adopt Resolution 2006-04, approving the Contract for Private
Redevelopment, including the sale ofland, between the Columbia Heights Economic Development
Authority and Sarna's Inc.
RECOMMENDED MOTION: Move to Adopt Resolution 2006-04, a Resolution Approving a
Contract for Private Redevelopment, including the sale of land, between the Columbia Heights
Economic Development Authority and Sarna's Inc.; and furthermore, to authorize the President and
Executive Director to enter into an agreement for the same.
Attachments
EDA ACTION:
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2006-04
RESOLUTION APPROVING A CONTRACT FOR PRIVATE REDEVELOPMENT,
INCLUDING THE SALE OF LAND, BETWEEN THE COLUMBIA HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY AND SARNA'S, INC.
BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic
Development Authority ("Authority") as follows:
Section 1. Recitals.
1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment
authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ("EDA Act.
1.02. The Authority and Sarna's, Inc. (the "Redeveloper") have proposed to enter into a into a
Contract for Private Redevelopment (the "Contract"), setting forth the terms and conditions of the sale and
subsequent redevelopment of certain property owned by the Authority, generally located in the southeast
corner of 40'h and University Avenue.
1.03. The Authority believes that the building located on the Redevelopment Property is
obsolete, the site contains levels of polluted soils and geo-technically-unsound soils, which require
remediation, with the result that the Redeveloper will incur significant costs to address these substandard
conditions in order to redevelop the property.
1.04. In order to assist the Redeveloper in making development of the Redevelopment
Property economically feasible, and in consideration of the environmental condition of the Redevelopment
Property, the Authority will assemble all parcels and land comprising the Redevelopment Property and
convey title to and possession of the Redevelopment Property to the Redeveloper at a reduced cost, and
provide grant funds to address environmental and soils conditions thereon, subject to all the terms and
conditions of the Contract..
1.03. The Board has reviewed the Contract and finds that the execution thereof and performance of
the Authority's obligations thereunder are in the best interest of the City and its residents.
Section 2. Authoritv Approval: Further Proceedinqs.
2.01. The Contract as presented to the Board is hereby in all respects approved, subject to
modifications that do not alter the substance of the transaction and that are approved by the President and
Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of
approval.
2.02. The President and Executive Director are hereby authorized to execute on behalf of the
Authority the Contract and any documents referenced therein requiring execution by the Authority, and to
carry out, on behalf of the Authority its obligations thereunder.
Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this
23rd day of May 2006.
President- Don Murzyn Jr.
ATTEST:
Secretary- Cheryl Bakken
284826v2 MTN CL205-26
CONTRACT
FOR
PRIVATE REDEVELOPMENT
By and Between
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
COLUMBIA HEIGHTS, MINNESOTA
and
SARNA'S, INC.
Dated as of:
,2006
This document was drafted by:
KENNEDY & ORA VEN, Chartered (MTN)
470 US Bank Plaza
200 South Sixth Street
Minneapolis, Minnesota 55402
Telephone: (612) 337-9300
274817v8 MTN CLZ05-26
PREAMBLE
Section 1.1.
Section 2.1.
Section 2.2.
Section 3.1.
Section 3.2.
Section 3.3.
Section 3.4.
Section 3.5.
Section 3.6.
Section 3.7.
Section 3.8.
Section 3.9.
Section 3.10.
Section 4.1.
Section 4.2.
Section 4.3.
Section 4.4.
Section 5.1.
Section 5.2.
Section 5.3.
274817v8 MTN CL205-26
TABLE OF CONTENTS
............................................................................................................................1
ARTICLE I
Definitions
Defini ti ons..........................................................................................................2
ARTICLE II
Representations and Warranties
Representations by the Authority.......................................................................4
Representations and Warranties by the Redeveloper.........................................4
ARTICLE III
Property Conditions, Acquisition, Conveyance and Financing
Condition, Acquisition and Conveyance of the Redevelopment Property ........6
Conditions of Conveyance; Purchase Price .......................................................7
Place of Document Execution, Delivery and Recording ...................................8
Title.................................................................................................................... 8
Soil Conditions; Other Representations.............................................................9
No Business Subsidy.......................................................................................... 9
Environmental Conditions...............................................................................1 0
Environmental Remediation/Soils Correction; Grants; Disbursements ..........10
Payment of Administrative Costs ....................................................................13
Records........................................................................................................... .13
ARTICLE IV
Construction of Minimum Improvements and Public Improvements
Construction of Minimum Improvements and Public Improvements .............14
Construction Plans .......................................................................................... .14
Completion of Construction........................................................................... ..15
Certificate of Completion ................................................................................16
ARTICLE V
Insurance
Insurance......................................................................................................... .17
Subordination................................................................................................. ..18
Qualifications................................................................................................. ..18
Section 6.1.
Section 6.2.
Section 7.1.
Section 8.1.
Section 8.2.
Section 8.3.
Section 9.1.
Section 9.2.
Section 9.3.
Section 9.4.
Section 9.5.
Section 9.6
Section 9.7
Section 10.1.
Section 10.2.
Section 10.3.
Section 10.4.
Section 10.5.
Section 10.6.
Section 10.7.
Section 10.8.
Section 10.9.
Section 10.1 O.
Section 10.11.
274817v8 MTN CL205.26
ARTICLE VI
Taxes
Right to Collect Delinquent Taxes................................................................... 19
Review of Taxes ..............................................................................................19
ARTICLE VII
Financing
Mortgage Financing...................................................................................... ...20
ARTICLE VIII
Prohibitions Against Assignment and Transfer;
Indemnification
Representation as to Redevelopment ...............................................................21
Prohibition Against Redeveloper's Transfer of Property and
Assignment of Agreement ...............................................................................21
Release and Indemnification Covenants ..........................................................23
ARTICLE IX
Events of Default
Events of Default Defined ............................................................................ ...24
Remedies on Default....................................................................................... .24
Revesting Title in Authority Upon Happening of Event Subsequent
To Conveyance to Redeveloper .......................................................................25
Resale of Reacquired Propel1y; Disposition of Proceeds ................................26
No Remedy Exclusive................................................................................... ...27
No Additional Waiver Implied by One Waiver ...............................................27
Attorney Fees .................................................................................................. .27
ARTICLE X
Additional Provisions
Conflict ofInterests; Authority Representatives Not Individually Liable.......28
Equal Employment Oppol1unity ..................................................................... .28
Restrictions on Use..........................................................................................28
Provisions Not Merged With Deed..................................................................28
Titles of Articles and Sections .........................................................................28
Notices and Demands..................................................................................... .28
Counterparts.................................................................................................... .29
Recording.. ........................ ... ...... .................... ... ........ .......................... ............ .29
Amendment..... ........................... ... ... ............. .... ... ............................... ......... ....29
Authority or City Approvals ............................................................................29
Termination.. ... ... ......... ................................................................ .................... .29
11
EXHIBIT A
EXHIBIT B
EXHIBIT C
EXHIBIT D
EXHIBIT E
EXHIBIT F
Description of Redevelopment Property
Gondek Agreement
Certification of Completion
Environmental Remediation Costs
Intentionally Deleted
Escrow Calculation
274817v8 MTN CL205-26
11l
CONTRACT FOR PRIVATE REDEVELOPMENT
THIS AGREEMENT, made on or as of the I st day of 2006, by and between
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, COLUMBIA
HEIGHTS, MINNESOTA, a public body corporate and politic (the "Authority"), established
pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 (hereinafter referred to as the
"Act"), and SARNA'S, INC., a Minnesota corporation (the "Redeveloper").
WITNESSETH:
WHEREAS, the Authority was created pursuant to the Act and was authorized to transact
business and exercise its powers by a resolution of the City Council of the City of Columbia
Heights ("City"); and
WHEREAS, the City and the Authority (as successor to the Housing and Redevelopment
Authority in and for the City of Columbia Heights) have undertaken a program to promote
redevelopment of land which that is characterized by blight and blighting factors within the City
pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Act"); and
WHEREAS, pursuant to the Act and the HRA Act, the Authority is authorized to acquire
real property, or interests therein, and to undeliake certain activities to facilitate the
redevelopment of real propeliy by private enterprise; and
WHEREAS, the Authority and Redeveloper have previously entered into a Preliminary
Development Agreement dated as of June 17, 2005 regarding proposed redevelopment of the
property described in Exhibit A hereto, designated as the Redevelopment Property; and
WHEREAS, this Agreement is intended to supersede and replace the Preliminary
Agreement in all respects; and
WHEREAS, the Authority believes that the redevelopment of the Redevelopment
Property pursuant to this Agreement, and fulfillment generally of this Agreement, are in the vital
and best interests of the City and the health, safety, morals, and welfare of its residents, and in
accord with the public purposes and provisions of the applicable State and local laws and
requirements under which the Project has been undeliaken and is being assisted.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
ARTICLE I
Definitions
Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears
from the context:
"Act" means the Economic Development Authority Act, Minnesota Statutes, Sections
469.090 to 469.108, as amended.
"Agreement" means this Agreement, as the same may be from time to time modified,
amended, or supplemented.
"Authority" means the Columbia Heights Economic Development Authority, or any
successor or assign.
"Authority Representative" means the Executive Director of the Authority, or any person
designated by the Executive Director to act as the Authority Representative for the purposes of
this Agreement.
"Business Day" means any day except a Saturday, Sunday, legal holiday, a day on which
the City is closed for business, or a day on which banking institutions in the City are authorized
by law or executive order to close.
"Business Subsidy Act" means Minnesota Statues, Sections 116J.993 to 1161.995, as
amended.
"Certificate of Completion" means the ce11ification provided to the Redeveloper, or the
purchaser of any part, parcel or unit of the Redevelopment Property, pursuant to Section 4.4 of
this Agreement.
"City" memlS the City of Columbia Heights, Minnesota.
"Construction Plans" means the plans, specifications, drawings and related documents on
the construction work to be performed by the Redeveloper on the Redevelopment Property
which a) shall be as detailed as the plans, specifications, drawings and related documents which
are submitted to the appropriate building officials of the City, and (b) shall include at least the
following for each building: (I) site plan; (2) foundation plan; (3) basement plans; (4) floor plan
for each floor; (5) cross sections of each (length and width); (6) elevations (all sides); (7)
landscape plan; and (8) such other plans or supplements to the foregoing plans as the Authority
may reasonably request to allow it to asceJ1ain the nature and quality of the proposed
construction work.
"County" means the County of Anoka, Minnesota.
274817v8 MTN CL205-26
2
"Event of Default" means an action by the Redeveloper listed in Article IX of this
Agreement.
"Holder" means the owner of a Mortgage.
"Minimum Improvements" means the construction of at least a 6,000 square foot
restaurant, associated parking, and related improvements.
"MOltgage" means any mOltgage made by the Redeveloper which is secured, in whole or
in part, with the Redevelopment Property and which is a permitted encumbrance pursuant to the
provisions of Alticle VIII of this Agreement.
"Preliminary Development Agreement" means the Preliminary Development Agreement
between the Authority and the Redeveloper dated as of June 17,2005.
"Public Improvements" has the meaning provided in Section 4.1 (b) hereof.
"Redeveloper" means Sarna's, Inc. or its permitted successors and assigns.
"Redevelopment Property" means the propelty so described on Exhibit A.
"State" means the State of Minnesota.
"Tax Official" means any County assessor; County auditor; County or State board of
equalization, the commissioner of revenue of the State, or any State or federal district comt, the
tax court of the State, or the State Supreme Court.
"Termination Date" means the date the Authority issues the Certificate of Completion.
"Transfer" has the meaning set forth in Section 8.2(a) hereof.
"Unavoidable Delays" means delays beyond the reasonable control of the patty seeking
to be excused as a result thereof which are the direct result of war, significant weather conditions
such as floods, tornadoes, or the like, terrorism, strikes, other labor troubles, fire or other
casualty to the Minimum Improvements, litigation commenced by third parties which, by
injunction or other similar judicial action, directly results in delays, or acts of any federal, state
or local governmental unit (other than the Authority in exercising its rights under this
Agreement) which directly result in delays. Unavoidable Delays shall not include delays in the
Redeveloper's obtaining of permits or govermnental approvals necessary to enable construction
of the Minimum Improvements by the dates such construction is required under Section 4.3 of
this Agreement.
274817v8 MTN CL205-26
3
ARTICLE II
Representations and Warranties
Section 2.1. Representations bv the Authoritv. The Authority makes the following
representations as the basis for the undertaking on its part herein contained:
(a) The Authority is an economic development authority duly organized and existing
under the laws of the State. Under the provisions of the Act, the Authority has the power to enter
into this Agreement and carry out its obligations hereunder.
(b) The activities of the Authority are undertaken to foster the redevelopment of
certain real propelty which for a variety of reasons is presently underutilized, to eliminate CUl1'ent
blighting factors and prevent the emergence of fUlther blight at a critical location in the City, to
create increased tax base in the City, to stimulate fUlther development in the City as a whole.
Section 2.2. Representations and Warranties bv the Redeveloper. The Redeveloper
represents and warrants that:
(a) The Redeveloper is a corporation duly organized and in good standing under the
laws of the State of Minnesota, is not in violation of any provisions of its article of organization
or the laws of the State, is duly authorized to transact business within the State, has power to
enter into this Agreement and has duly authorized the execution, delivery and performance of
this Agreement by proper action of its members.
(b) Upon acquisition of the Redevelopment Property, the Redeveloper will construct,
operate and maintain the Minimum Improvements in accordance with the terms of this
Agreement and all applicable local, state and federal laws and regulations (including, but not
limited to, environmental, zoning, building code and public health laws and regulations).
(c) The Redeveloper has received no notice or communication from any local, state
or federal official that the activities of the Redeveloper or the Authority may be or will be in
violation of any environmental law or regulation (other than those notices or communications of
which the Authority is aware). The Redeveloper is aware of no facts the existence of which
would cause it to be in violation of or give any person a valid claim under any local, state or
federal environmental law, regulation or review procedure.
(d) The Redeveloper will construct the Minimum Improvements in accordance with
all local, state or federal energy-conservation laws or regulations.
(e) The Redeveloper will obtain, in a timely manner, all required permits, licenses
and approvals, and will meet, in a timely manner, all requirements of all applicable local, state
and federal laws and regulations which must be obtained or met before the Minimum
Improvements may be lawfully constructed.
274817v8 MTN CL205-26
4
(f) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of,
the terms, conditions or provisions of any corporate restriction or any evidences of indebtedness,
agreement or instrument of whatever nature to which the Redeveloper is now a party or by which
it is bound, or constitutes a default under any of the foregoing.
(g) The Redeveloper shall promptly advise City in writing of all litigation or claims
affecting any part of the Minimum Improvements and all written complaints and charges made
by any governmental authority materially affecting the Minimum Improvements or materially
affecting Redeveloper or its business which may delay or require changes in construction of the
Minimum Improvements.
(h) The proposed redevelopment by the Redeveloper hereunder would not occur but
for the public assistance in the form of a land value write-down and environmental remediation
grants being provided by the Authority hereunder.
274817v8 MTN CL205-26
5
ARTICLE III
Property Condition. Acquisition. Convevancc and Financinl!
Section 3.1. Condition. Acquisition and Conveyance of the Redeyelopment Property.
(a) As of the date of this Agreement, the City or the Authority owns five (5) parcels of land
comprising a part of the Redevelopment Propelty and is in the process of assembling certain
parcels or land, University Avenue right-of-way and Lookout Place, owned by the City. The
Authority believes that the building located on the Redevelopment Property is obsolete, the site
contains levels of polluted soils and geo-technically-unsound soils which require remediation
with the result that the Redeveloper will incur significant costs to address these substandard
conditions in order to redevelop the property. In order to assist the Redeveloper in making
development of the Minimum Improvements economically feasible, and in consideration of the
environmental condition of the Redevelopment Property, the Authority will assemble all parcels
and land comprising the Redevelopment Property and convey title to and possession of the
Redevelopment Property to the Redeveloper at a reduced cost, and provide grant funds to
address environmental and soils conditions thereon, subject to all the terms and conditions ofthis
Agreement.
(b)
actions:
The Authority obligates itself to undertake and complete by Closing the following
(i) Work with the City to complete the University Avenue turn back process
with the Minnesota Department of Transportation ("MnDOT") and accept its turn back of the
identified portions of University Avenue; vacate or convey such land to Redeveloper as
determined by the Authority;
(ii) Provide approval of the Gondek Property Agreement ("Gondek
Agreement") (attached as Exhibit B) and related plans involving alley, bollards, and timing for
mass grading impact on access during construction;
(iii) Convey vacated Lookout Place ("Lookout Vacation");
(iv) Determine timing for removal of University Avenue Frontage Road (at no
cost to the City or the Authority) including storm water utility relocation timing and financial
responsibility therefore;
(v) Acquire from MnDOT and convey to Redeveloper the twenty-five foot
(25') w,iece of MnDOT property at the northwest corner of the Redevelopment Propelty adjacent
to 40" Avenue and University Avenue (the "Corner"), with the Redeveloper compensating
MnDOT for its public interests in the Corner.
(c) The Redeveloper obligates itself to undertake and complete by Closing the
following actions:
274817v8 MTN CL205-26
6
(i) Seek approval of MnDOT, if it so desires, for a license agreement to
utilize a five foot (5') strip of land for landscaping in the vacated portion of University Avenue
retained by MnDOT;
(ii) Enter into an agreement with Schaefer Richardson in connection with
sharing of the prorated cost of the removal of University Avenue Frontage Road adjacent to ME
Global and the Redevelopment Property based upon front footage of the respective property on
University Avenue or as otherwise agreed to by and between Schaefer Richardson and the
Developer.
(iii) Pay to the City its cost incuned to provide alternate access point onto
Lookout Place for ME Global property and the additional construction activities for ME Global,
including the provision of required utilities, described on Exhibit E. The Developer's share of
the cost will be based upon an agreement to be entered into by and between Schaefer Richardson
and the City/Authority, which amount shall not exceed twenty percent (20%) of the Total Project
Cost.
(iv) Provide security to the Authority in the form ofa letter of credit (LOC) (or
other security satisfactory to the Authority in its reasonable discretion) in the amount of 125% of
the verified costs for the removal by the Redeveloper of the MGS Building located at 322 - 40th
Avenue and all associated costs of site preparation as determined by the Authority.
(v) Provide security to the Authority in the form of a letter of credit (LOC) (or
other security satisfactory to the Authority in its reasonable discretion) in the amount of 125% of
the verified costs of the Redeveloper to construct a 14-foot alley to tie into the existing alley to
the most easterly portion of the Redevelopment Property.
(vi) Secure decision of MnDOT concerning landscaping and fencing of the
retained University Avenue.
(vii) Pay at Closing $3890 to the Authority for the costs of the Authority
having relocated the City's fire siren on the Redevelopment Property.
Section 3.2. Conditions ofConvevance; Purchase Price. (a) The Authority shall convey
title to and possession of the Redevelopment Property to the Redeveloper by a quit claim deed in
the form contained in Exhibit C. The Authority's obligation to convey the Redevelopment
Property to the Redeveloper is subject to satisfaction of the following terms and conditions:
(i) the Redeveloper having submitted and the Authority having approved
evidence of financing as required under Article VII;
(ii) the Redeveloper having submitted and the Authority having approved
Construction Plans for the Minimum Improvements as required by Alticle IV, which include the
actions described in subparagraphs 3.1 (c) (iii) - (vii) above;
(iii) the Redeveloper having reviewed and approved title to the Redevelopment
Property as set forth in Section 3.4;
274817v8 MTN CL205-26
7
(iv) the Redeveloper not being in default under this Agreement;
(v) the Redeveloper paying the fee in lieu of providing on-site storm water
ponding, not to exceed $37,400 as identified by the City Engineer;
(vi) the City having approved and granted all Redeveloper required vacations,
variances, land use and plat approvals (the "Land Use Approvals").
(b) The closing on conveyance of the Redevelopment Propelty from the Authority to
the Redeveloper shall occur on or before December 31, 2006 (the "Closing"), or such other date
as the Authority and Redeveloper agree in writing.
( c) The purchase price of the conveyance of the Redevelopment Propelty shall be
Seventy-Five Thousand Dollars ($75,000.00), which represents a write-down of the value of the
Redevelopment Propelty in recognition of the Redeveloper's costs of environmental remediation
and related soil corrections and site preparation activities and costs as described in Section 3.6.
Section 3.3. Place of Document Execution, Deliverv and Recording. (a) Unless
otherwise mutually agreed by the Authority and the Redeveloper, the execution and delivery of
all deeds, documents and the payment of any purchase price shall be made at the offices of the
Authority.
(b) The deed shall be in recordable form and shall be promptly recorded in the proper
office for the recordation of deeds and other instruments pertaining to the Redevelopment
Property. At closing, the Redeveloper shall payor have previously paid: title insurance
commitment fees up to $800.00 and all required premiums, if any, and title company closing
fees, if any; the Authority shall pay all recording costs for recording the deed, including the cost
of recording any instruments used to clear title encumbrances, including State deed tax, in
connection with the conveyance of the Redevelopment Propelty, including title costs relating to
conveyance of the Corner.
(c) The parties understand and acknowledge that the Redevelopment Property is non-
taxable for tax payments due and payable in the year 2006. The parties fmther understand and
acknowledge that there are no outstanding levied special assessments against the Redevelopment
Property.
Section 3.4. Title. (a) Redeveloper has obtained a commitment for the issuance of a
policy oftitle insurance for the Redevelopment Property and delivered the same to the Authority.
The Redeveloper has reviewed the state of title to the Redevelopment Propelty and provided the
Authority with a list of written objections to such title. Authority shall proceed in good faith and
with all due diligence to attempt to cure the objections made by the Redeveloper. Not earlier
than eleven days following the date the Redeveloper shall have received a commitment for the
issuance of a policy of title insurance for the Redevelopment Propelty from the Authority or, in
the event the Redeveloper shall have provided the Authority with a list of written objections,
within ten (10) days after the date that all such objections have been cured to the reasonable
274817v8 MTN CL205-26
8
satisfaction of the Redeveloper, the Authority and Redeveloper shall proceed with the acquisition
and conveyance of the Redevelopment Property pursuant to Sections 3.1 and 3.2 of this
Agreement. In the event that the Authority has failed to cure objections within sixty (60) days
after its receipt of the Redeveloper's list of such objections, either the Redeveloper or the
Authority may by the giving of written notice to the other, terminate this Agreement, upon the
receipt of which this Agreement shall be null and void and neither party shall have any liability
hereunder. The Authority shall have no obligation to take any action to clear defects in the title
to the Redevelopment Property, other than the good faith efforts described above.
(b) The Authority shall take no actions to encumber title to the Redevelopment
Propel1y between the date of this Agreement and the time which the Deed is delivered to the
Redeveloper.
Section 3.5. Soil Conditions; Other Representations. (a) The Redeveloper acknowledges
that the Authority makes no representations or warranties as to the condition of the soils on the
Redevelopment Propel1y or its fitness for construction of the Minimum Improvements or any
other purpose for which the Redeveloper may make use of such property. The Pm1ies
acknowledge that pollution caused by hazardous materials or substances is located on the
Redevelopment Property and that all rep0l1s relating to such pollution have been provided to
Redeveloper. The Redeveloper acquires the Redevelopment Propel1y "as is."
(b) Any time and from time to time prior to the date of closing, Redeveloper, and
person or persons selected by Redeveloper shall be permitted access to the Redevelopment
Property for the purpose of conducting such studies and investigations of the Redevelopment
Property as Redeveloper deems appropriate, which studies and investigations shall be conducted
at Redeveloper's sole expense and pursuant to any other terms and conditions of this Agreement.
Redeveloper agrees to indemnify the Authority against any liability, cost or expense incurred by
the Authority as a result of Redeveloper's actions, including but not limited to fines, court costs,
reasonable attorneys' fees and remedial costs. Such studies may include without limitation,
physically inspecting the Redevelopment Property and reviewing the Authority's records
concerning the Redevelopment Property which records shall be made reasonably available to
Redeveloper.
(c) The Authority discloses that there is not an individual sewage treatment system on
or serving the Redevelopment Propel1y.
(d) The Authority does not know of any wells on the Redevelopment Property, and
will so certify in the deed conveying the Redevelopment Property to the Redeveloper.
Section 3.6. No Business Subsidv. The pm1ies understand that the Authority is
transferring the Redevelopment Property to the Redeveloper by means of a write-down of the
fair-market value of the Redevelopment Property to $75,000. The Authority recognizes
identified Environmental/Soils Remediation corrections issues as defined in Section 3.7 and
described on Exhibit F of at least $120,350. Such costs will be credited up to $56,000 against
the Purchase Price upon verification by Redeveloper. The Authority in addition will provide
available funds from a grant to the Authority, to the Redeveloper for hazardous soils correction
274817v8 MTN CL20S-26
9
up to $64,000 (the "Environmental Grant"). This write-down and grant do not constitute a
business subsidy because the Redeveloper's investment in site acquisition and preparation is at
least $195,000, which is 70 percent or more of the assessor's current year's estimated market
value of $248,500. Therefore, no business subsidy is being provided to the Redeveloper
pursuant to Minnesota Statutes, Section 1161.993 to 1161.995, as amended.
Section 3.7. Environmental Conditions. (a) The Redeveloper acknowledges, as
disclosed in Section 3.5, that the Authority makes no representations or warranties as to the
condition of the soils on the Redevelopment Property or the fitness of such property for
construction of the Minimum Improvements or any other purpose for which the Redeveloper
may make use of such property, and that the assistance provided to the Redeveloper under this
Agreement neither implies any responsibility by the Authority or the City for any contamination
of the Redevelopment Property nor imposes any obligation on such patties to patticipate in any
cleanup of such property. The Authority has provided all environmental reports (the
"Environmental Reports") in its possession concerning the Redevelopment Propelty to the
Redeveloper, and represents that that it knows of no other environmental conditions relating to
the Redevelopment Propelty, except as disclosed in the Environmental Reports.
(b) Redeveloper is responsible for preparing, submitting and receiving approval of a
development response action plan (DRAP) for the Redevelopment Propelty from the Minnesota
Pollution Control Agency (MPCA) for the remediation of contaminated soil conditions on the
Redevelopment Property ("Environmental Remediation").
(c) Without limiting its obligations under Atticle VIII of this Agreement the
Redeveloper further agrees that it will indemnify, defend, and hold harmless the Authority, the
City, and their governing body members, officers, and employees (the "Indemnitees"), from any
claims or actions arising out of the presence, if any, ofhazat'dous wastes or pollutants existing on
or in the Redevelopment Property, unless and to the extent that such hazardous wastes or
pollutants are present as a result of the actions or omissions of the Indemnitees. Nothing in this
section will be construed to limit or affect any limitations on liability of the City or Authority
under State or federal law, including without limitation Minnesota Statutes Sections 466.04 and
604.02.
(d) The Redeveloper shall demolish all existing buildings on the Redevelopment
Property and undertake all Environmental Remediation including soil corrections, remediation of
any hazardous materials located on the Redevelopment Propelty consistent with applicable State
and Federal requirements, and deliver proof of approval of (i) the DRAP, (ii) utility relocation,
and (iii) grading and excavation needed to construct the Minimum Improvements.
Section 3.8. Envirolllilental Remediation/Soils Correction; Grants; Disbursement. (a) In
order to construct the Minimum Improvements, the Redeveloper will complete the
Environmental Remediation as well as required soils corrections (collectively,
"Environmental/Soils Remediation") pursuant to a schedule to be developed by agreement with
the Authority and the Redeveloper, and will incur the "Environmental/Soils Remediation Costs"
described in Exhibit D. To finance potentially all or a p01tion of such costs, the Authority has
obtained a grant of community development block grant (CDBG) funds from Anoka County
(Grantor Agency) and will provide up to $64,000 of grant funds for Environmental
274817v8 MTN CL205-26
10
Remediation/Soils Remediation pursuant to the requirements of this Section 3.8 (the
"Environmental Grant"). Redeveloper shall be responsible for securing a contractor or
contractors experienced in and licensed to conduct its Environmental Remediation
("Remediation Contractor"). Redeveloper shall also be required to follow the requirements of
Minn. Stat. 9471.345, the Uniform Municipal Contracting Law, to select and hire the
Remediation Contractor for the prosecution of all remediation activities eligible for
reimbursement from the Environmental Grant.. The Authority staff shall cooperate with
Redeveloper to implement this requirement.
(b) The Authority will payor reimburse the Redeveloper for Enviromnental/Soils
Remediation Costs, from and to the extent of the grant proceeds from the Grantor Agency.
Further, to the extent the Environmental/Soils Remediation Costs do not exceed the amount of
the Environmental Grant received, the Authority shall pay such verified costs up to $64,000 as
provided in sections (c) and (d) below. Notwithstanding anything to the contrary herein, if
Enviromnental/Soils Remediation Costs exceed the amount to be reimbursed under this Section,
such excess costs shall be the sole responsibility of the Redeveloper, subject only to credits to the
Purchase Price as defined in Section 3.6 herein.
(c) Upon request of Redeveloper from time to time, the Authority will disburse to or
on behalf of the Redeveloper, from the grant source described in Section 3.8(a), and subject to
the requirements in sections 3.8(e) and (t), up to $64,000, the maximum amount of the
Environmental Grant, for payment of the Environmental/Soils Remediation Costs, subject to the
condition precedent that on the date of such disbursement:
(i) No Event of Default under this Agreement or event which would
constitute such an Event of Default but for the requirement that notice be given or that a
period of grace or time elapse, shall have occurred and be continuing;
(ii) The Redeveloper has provided to the Authority a verified statement of the
portion of Environmental/Soils Remediation Costs, as reflected in Schedule D, as to
which a disbursement is being requested.
(d) All disbursements made under clause (c) of this Section will be made subject to
the conditions precedent that on the date of such disbursement:
(i) The Authority has received a written statement from the Redeveloper's
authorized representative certifying with respect to each payment: (A) that none of the
items for which the payment is proposed to be made has formed the basis for any
payment theretofore made under this section; (B) that each item for which the payment is
proposed is a Environmental/Soils Remediation Costs as described in Schedule D, and
(C) the Redeveloper reasonably anticipates completion of the Environmental/Soils
Remediation and the Minimum Improvements in accordance with the terms of this
Agreement.
(ii) No Event of Default under this Agreement or event which would
constitute such an Event of Default but for the requirement that notice be given or that a
period of grace or time elapse, shall have occurred and be continuing.
274817v8 MTN CL205-26
II
(iii) No license or permit necessary for undeliaking the Environmental
Remediation or constructing the Minimum Improvements shall have been revoked or the
issuance thereof subjected to challenge before any court or other governmental authority
having or asseliing jurisdiction there over.
(iv) Redeveloper has acquired fee title to the Redevelopment Propeliy, or has
received a right of access to the Redevelopment Property from the Authority to
accomplish Environmental Remediation.
(v) Redeveloper has submitted, and the Authority has approved, Construction
Plans for the Minimum Improvements in accordance with Article IV hereof, and
financing commitment in accordance with Article VII hereof.
(vi) Redeveloper has provided to the Authority a contingent or collateral
assignment, in the form on file with the Authority as of the date of this Agreement, of all
the Redeveloper's contracts for undertaking the Environmental Remediation, allowing
the Authority to enforce such contracts and to complete the work in the event
Redeveloper fails to do so.
(vii) Redeveloper has provided the Authority with rights of access, in the form
on file with the Authority as of the date of this Agreement, granting the Authority, its
agents and contractors the right to enter the Redevelopment Property and to complete the
Environmental Remediation if Redeveloper fails to do so in accordance with this
Agreement.
(e) Whenever the Redeveloper desires a disbursement to be made hereunder, which
shall be no more often than monthly, the Redeveloper shall submit to the Authority a letter duly
executed on behalf of the Redeveloper accompanied by paid invoices or other comparable
evidence that the cost has been incurred and invoices paid by Redeveloper. Each request shall
constitute a representation and warranty by the Redeveloper that all representations and
warranties set forth in this Agreement are true and correct as of the date of such draw request.
(f) If the Redeveloper has performed all of its agreements and complied with all
requirements theretofore to be performed or complied with hereunder, including satisfaction of
all applicable conditions precedent contained in Aliicle III hereof, the Authority shall request
reimbursement from the Grantor Agency as soon as reasonably possible, and upon receipt of
requested funds, the Authority shall make a disbursement to the Redeveloper in the amount of
the requested disbursement. Each disbursement shall be paid as follows: Within thirty (30)
business days of receipt of a request for disbursement, the Authority shall disburse the approved
amount of the requested disbursement to the Redeveloper.
(g) The making of the final disbursement by the Authority under this Section shall be
subject to the condition precedent that the Redeveloper shall be in compliance with all conditions
set forth in this Section and fUliher, that the following conditions shall have been satisfied:
274817v8 MTN CL205-26
12
(I) The Redeveloper shall have received, or applied for and is awaiting, a
certificate of completion from the Minnesota Pollution Control Agency pursuant to
Minnesota Statutes, Section 115B.175; and
(2) The Authority shall have received a lien waiver from each contractor for
all work done and for all materials furnished by it for the Environmental Remediation.
(h) The Authority may, in its sole discretion, without notice to or consent from any
other party, waive any or all conditions for disbursement set forth in this Article. However, the
making of any disbursement prior to fulfillment of any condition therefor shall not be construed
as a waiver of such condition, and the Authority shall have the right to require fulfillment of any
and all such conditions prior to authorizing any subsequent disbursement.
(i) Notwithstanding anything to the contrary in this Agreement, if Redeveloper
should default by failing to complete the Environmental Remediation by the date provided for in
a schedule to be developed pursuant to Section 3.8(a), or fail to complete the Minimum
Improvements by the dates specified in Section 4.3(a), the Redeveloper shall promptly repay to
the Authority the amount disbursed to Redeveloper under clauses (d)-(g). Further, the Authority
may, in addition to any remedies it has under this Agreement, exercise its rights to enter the
Redevelopment Propeliy and complete the Environmental Remediation under the right of access
referenced in Section 3.8(d)(vii).
Section 3.9. Pavment of Administrative Costs. The Redeveloper is responsible for the
Authority's "Administrative Costs," which means out-of-pocket costs incurred by the Authority
attributable to or incurred in connection with the negotiation and preparation of this Agreement,
the Preliminary Development Agreement, and other documents and agreements in connection
with the Redevelopment Property. In order to secure partial payment of the Administrative
Costs, the Redeveloper delivered to the Authority $3,000 upon execution of the Preliminary
Development Agreement. The Authority will utilize such funds to payor reimburse itself for
Administrative Costs. If at anyone or more times during the term of this Agreement, the
Authority determines that Administrative Costs will exceed $3,000 and that additional security is
required, the Authority shall notify the Redeveloper of the amount of such additional security.
Within ten calendar days of receipt of such notice, the Redeveloper shall deliver to the Authority
the required additional security. Failure of the Redeveloper to deliver the requested additional
security will result in the Authority suspending its obligations under this Agreement until the
security is provided.
Section 3.10. Records. The Authority or its representatives shall have the right at all
reasonable times after reasonable notice to inspect, examine and copy all books and records of
Redeveloper relating to the Minimum Improvements.
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ARTICLE IV
Construction of Minimum Improvements and Public Improvements
Section 4.1. Construction of Minimum Improvements and Public Improvements. (a) The
Redeveloper agrees that, upon acquisition of the Redevelopment Property, it will construct or
cause construction of the Minimum Improvements on the Redevelopment Propelty, in substantial
compliance with approved Construction Plans and at all times while Redeveloper owns the
Redevelopment Property, all as determined by the City Engineer in his reasonable discretion,
will operate and maintain, preserve and keep the respective components of the Minimum
Improvements or cause such components be maintained, preserved and kept with the
appmtenances and every part and parcel thereof, in good repair and condition.
(b) The Redeveloper must prepare plans and specifications pursuant to the
Construction Plans, and construct all improvements consistent therewith, all in accordance with
the requirements of the City Engineer in his reasonable discretion. Before commencing such
construction, the Redeveloper must submit plans and specifications regarding the Public
Improvements for approval by the City substantially in accordance with procedures for
Construction Plans described in Section 4.2. All plans and specifications shall in addition
comply with all conditions imposed on Redeveloper by the City or its Planning Commission in
approving the requested zoning approvals, variance, vacation and preliminary and final plat (the
"Land Use Approvals") for the Redevelopment Property. Redeveloper understands that there
remains pending City approval of the final plat, vacation of Lookout Place, the two (2) foot
parking variance and other set back and parking variances required by Redeveloper. All work on
the Public Improvements shall be in accordance with the approved construction plans and shall
comply with all City requirements regarding such improvements. The parties agree and
understand that the City will accept the improvements in accordance with City procedures.
Section 4.2. Construction Plans. (a) Before commencement of construction of the
Minimum Improvements, the Redeveloper shall submit to the Authority Construction Plans. The
Construction Plans shall provide for the construction of the Minimum Improvements and shall be
in conformity with this Agreement and all applicable State and local laws and regulations. The
Authority Representative will approve the Construction Plans in writing if: (i) the Construction
Plans conform to the terms and conditions of this Agreement; (ii) the Construction Plans
conform to the goals and objectives of the Redevelopment Plan; (iii) the Construction Plans
conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iv) the
Construction Plans are adequate to provide for construction of the Minimum Improvements; (v)
the Construction Plans do not provide for expenditures in excess of the funds available to the
Redeveloper from all sources (including Redeveloper's equity) for construction of the Minimum
Improvements; and (vi) no Event of Default has occurred. Approval may be based upon a
review by the City's Engineer and Building Official of the Construction Plans. No approval by
the Authority Representative shall relieve the Redeveloper of the obligation to comply with the
terms of this Agreement or of the Redevelopment Plan, applicable federal, state and local laws,
ordinances, rules and regulations, or to construct the Minimum Improvements in accordance
therewith. No approval by the Authority Representative shall constitute a waiver of an Event of
274817v8 MTN CL20S.26
14
Default. If approval of the Construction Plans is requested by the Redeveloper in writing at the
time of submission, such Construction Plans shall be deemed approved unless rejected in writing
by the Authority Representative, in whole or in part. Such rejections shall set forth in detail the
reasons therefore, and shall be made within 15 days after the date of their receipt by the
Authority. If the Authority Representative rejects any Construction Plans in whole or in part, the
Redeveloper shall submit new or corrected Construction Plans within 15 days after written
notification to the Redeveloper of the rejection. The provisions of this Section relating to
approval, rejection and resubmission of corrected Construction Plans shall continue to apply
until the Construction Plans have been approved by the Authority. The Authority
Representative's approval shall not be unreasonably withheld, delayed or conditioned. Said
approval shall constitute a conclusive determination that the Construction Plans (and the
Minimum Improvements to be constructed in accordance with said plans) comply to the
Authority's satisfaction with the provisions of this Agreement relating thereto.
(b) If the Redeveloper desires to make any material change in the Construction Plans
after their approval by the Authority, the Redeveloper shall submit the proposed change to the
Authority for its approval. If the Construction Plans, as modified by the proposed change,
conform to the requirements of Section 4.2 of this Agreement with respect to such previously
approved Construction Plans, the Authority shall approve the proposed change and notify the
Redeveloper in writing of its approval. Such change in the Construction Plans shall, in any
event, be deemed approved by the Authority unless rejected, in whole or in part, by written
notice by the Authority to the Redeveloper, setting forth in detail the reasons therefor. Such
rejection shall be made within 15 days after receipt of the notice of such change. The
Authority's approval of any such change in the Construction Plans will not be uIU'easonably
withheld.
Section 4.3. Completion of Construction. (a) Subject to Unavoidable Delays, the
Redeveloper must commence construction of the Minimum Improvements by July 15,2006, and
must substantially complete construction of the Minimum Improvements by December 31, 2006.
All work with respect to the Minimum Improvements to be constructed or provided by the
Redeveloper on the Redevelopment Propelty shall be in substantial conformity with the
Construction Plans as submitted by the Redeveloper and approved by the Authority and the City.
If the Redeveloper is making substantial progress with respect to the redevelopment project, and
is unable to meet one or more of the above-referenced deadlines, the Authority and the
Redeveloper shall negotiate in good faith for a reasonable period to extend the time in which
necessary action( s) must be taken or occur, the lapse of which time would otherwise constitute a
default under this Agreement.
(b) The Redeveloper agrees for itself, its successors and assigns, and every successor in
interest to the Redevelopment Property, or any patt thereof, that the Redeveloper, and such
successors and assigns, shall promptly begin and diligently prosecute to completion the
redevelopment of the Redevelopment Property through the construction of the Minimum
Improvements thereon, and that such construction shall in any event be commenced and
completed subject to Unavoidable Delay within the period specified in this Section 4.3 of this
Agreement. Subsequent to conveyance of the Redevelopment Propelty, or any patt thereof, to
the Redeveloper, and until construction of the Minimum Improvements has been completed, the
274817v8 MTN CL205-26
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Redeveloper shall make reports, in such detail and at such times as may reasonably be requested
by the Authority, as to the actual progress of the Redeveloper with respect to such construction.
Section 4.4. Certificate of Completion. (a) Promptly after substantial completion of the
Minimum Improvements in accordance with those provisions of the Agreement relating solely to
the obligations of the Redeveloper to construct the Minimum Improvements (including the dates
for completion thereof), the Authority will furnish the relevant Redeveloper with a Certificate of
Completion in substantially the form attached as Schedule C. Such certification by the Authority
shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive
determination of satisfaction and termination of the agreements and covenants in the Agreement
and in the Deed with respect to the obligations of the Redeveloper, and its successors and
assigns, to construct the relevant component of the Minimum Improvements and the dates for the
completion thereof. Such certification and such determination shall not constitute evidence of
compliance with or satisfaction of any obligation of the Redeveloper to any Holder of a
MOltgage, or any insurer of a Mortgage, securing money loaned to finance the Minimum
Improvements, or any part thereof.
(b) The Certificate of Completion provided for in this Section 4.4 of this Agreement
shall be in such form as will enable it to be recorded in the proper office for the recordation of
deeds and other instruments pertaining to the Redevelopment Property. If the Authority shall
refuse or fail to provide any certification in accordance with the provisions of this Section 4.4 of
this Agreement, the Authority shall, within thirty (30) days after written request by the
Redeveloper, provide the Redeveloper with a written statement, indicating in adequate detail in
what respects the Redeveloper has failed to complete the Minimum Improvements in accordance
with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will
be necessary, in the opinion of the Authority, for the Redeveloper to take or perform in order to
obtain such certification.
( c) The construction of the Minimum Improvements shall be deemed to be
substantially completed when the Redeveloper has received a certificate of occupancy from the
City, and all site improvements have been substantially completed as reasonably determined by
the Authority Representative.
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ARTICLE V
Insurance
Section 5.1. Insurance. (a) The Redeveloper will provide and maintain at all times
during the process of constructing the Minimum Improvements an All Risk Broad Form Basis
Insurance Policy and, from time to time during that period, at the request of the Authority,
furnish the Authority with proof of payment of premiums on policies covering the following:
(i) Builder's risk insurance, written on the so-called "Builder's Risk
Completed Value Basis," in an amount equal to one hundred percent (100%) of the
insurable value of the Minimum Improvements at the date of completion, and with
coverage available in non-reporting form on the so-called "all risk" form of policy. The
interest of the Authority shall be protected in accordance with a clause in form and
content satisfactory to the Authority;
(ii) Comprehensive general liability insurance (including operations,
contingent liability, operations of subcontractors, completed operations and contractual
liability insurance) together with an Owner's Contractor's Policy with limits against
bodily injury and property damage of not less than $1,000,000 for each occurrence (to
accomplish the above-required limits, an umbrella excess liability policy may be used);
(iii) Automobile liability insurance to cover claims for damages because of
bodily injury or death of any person or property damage arising out of the ownership,
maintenance or use of any motor vehicle of not less than $1,000,000; and
(iv) Workers' compensation insurance, with statutory coverage.
(b) All insurance required in Article V of this Agreement shall be taken out and
maintained in responsible insurance companies selected by the Redeveloper which are
authorized under the laws of the State to assume the risks covered thereby, and shall name the
Authority, the City and any Mortgagee as an additional named insured thereunder. Upon
request, the Redeveloper will deposit annually with the Authority policies evidencing all such
insurance, or a celtificate or certificates or binders of the respective insurers stating that such
insurance is in force and effect. Unless otherwise provided in this Article V of this Agreement
each policy shall contain a provision that the insurer shall not cancel nor modify it in such a way
as to reduce the coverage provided below the amounts required herein without giving written
notice to the Redeveloper and the Authority at least thitty (30) days before the cancellation or
modification becomes effective. In lieu of separate policies, the Redeveloper may maintain a
single policy, blanket or umbrella policies, or a combination thereof, having the coverage
required herein, in which event the Redeveloper shall deposit with the Authority a certificate or
certificates of the respective insurers as to the amount of coverage in force upon the Minimum
Improvements.
274817v8 MTN CL205-26
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(c) The Redeveloper agrees to notify the Authority immediately in the case of
damage exceeding $100,000 in amount to, or destruction of, the Minimum Improvements or any
pOltion thereof resulting from fire or other casualty. In such event the Redeveloper will
fOlthwith repair, reconstruct and restore the Minimum Improvements to substantially the same or
an improved condition or value as it existed prior to the event causing such damage and, to the
extent necessary to accomplish such repair, reconstruction and restoration, the Redeveloper will
apply the net proceeds of any insurance relating to such damage received by the Redeveloper to
the payment or reimbursement of the costs thereof.
The Redeveloper shall complete the repair, reconstruction and restoration of the
Minimum Improvements, whether or not the net proceeds of insurance received by the
Redeveloper for such purposes are sufficient to pay for the same. Any net proceeds remaining
after completion of such repairs, construction and restoration shall be the propelty of the
Redeveloper.
(d) The Redeveloper and the Authority agree that all of the insurance provisions set
fOlth in this Aiticle V shall terminate upon the termination of this Agreement, the issuance by the
City of a Certificate of Completion for the Minimum Improvements.
Section 5.2. Subordination. Notwithstanding anything to the contrary contained in this
Article V, the rights of the Authority with respect to the receipt and application of any proceeds
of insurance shall, in all respects, be subject and subordinate to the rights of any lender under a
MOltgage approved pursuant to Article VII of this Agreement.
Section 5.3. Qualifications. Notwithstanding anything herein to the contrary, the palties
acknowledge and agree that:
(A) Upon transfer of the Redevelopment PropeIiy or portion thereof to another person
or entity, the Redeveloper will remain obligated under Section 5.1 hereof relating to such portion
transferred, unless the Redeveloper is released from such obligations in accordance with the
terms and conditions of Section 8.2(b), (c), or 8.3 hereof.
274817v8 MTN CL205-26
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ARTICLE VI
Taxes
Section 6.1. Right to Collect Delinquent Taxes. The Redeveloper acknowledges that the
Authority is providing substantial aid and assistance in furtherance of the redevelopment
described in this Agreement, in pmt through payment of the Public Redevelopment Costs. The
Redeveloper understands that the real estate taxes on the Minimum Improvements must be
promptly and timely paid. To that end, the Redeveloper agrees for itself, its successors and
assigns, in addition to the obligation pursuant to statute to pay real estate taxes, that it is also
obligated by reason of this Agreement to pay before delinquency all real estate taxes assessed
against the Redevelopment Property and the Minimum Improvements. The Redeveloper
acknowledges that this obligation creates a contractual right prior to the issuance of a Certificate
of Completion on behalf of the Authority to sue the Redeveloper or its successors and assigns to
collect delinquent real estate taxes and any penalty or interest thereon and to pay over the same
as a tax payment to the county auditor. In any such suit, the Authority shall also be entitled to
recover its costs, expenses and reasonable attorney fees.
Section 6.2. Review of Taxes. The Redeveloper agrees that prior to the issuance of the
Certificate of Completion, it will not cause a reduction in the real propelty taxes paid in respect
of the Redevelopment Property through: (A) willful destruction of the Redevelopment Propelty
or any part thereof; or (B) willful refusal to reconstruct damaged or destroyed property pursuant
to Section 5.1 of this Agreement. The Redeveloper also agrees that it will not, prior to the
issuance of the Certificate of Completion, apply for a deferral of propelty tax on the
Redevelopment Propelty pursuant to any law, or transfer or permit transfer of the
Redevelopment Property to any entity whose ownership or operation of the property would result
in the Redevelopment Propelty being exempt from real estate taxes under State law (other than
any pOltion thereof dedicated or conveyed to the City or Authority in accordance with this
Agreement).
274817v8 MTN CL205-26
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ARTICLE VII
Financinl!
Section 7.1. Mortgal!e Financinl!. (a) Before the Redeveloper's Closing Date, the
Redeveloper shall submit to the City evidence of one or more commitments for financing which,
together with committed equity for such construction, is sufficient for payment of the
Construction Costs for the Minimum Improvements. Such commitments may be submitted as
short term financing, long term mortgage financing, a bridge loan with a long term take-out
financing commitment, or any combination of the foregoing.
(b) If the financing is sufficiently committed and adequate in amount to pay the costs
specified in paragraph (a) then the Authority staff shall notifY the Redeveloper in writing of its
approval. Such approval shall not be umeasonably withheld and either approval or rejection
shall be given within ten (10) days from the date when the Authority is provided the evidence of
financing. A failure by the Authority staff to respond to such evidence of financing shall be
deemed to constitute an approval hereunder. If the Authority staff rejects the evidence of
financing as inadequate, it shall do so in writing specifying the basis for the rejection. In any
event the Redeveloper shall submit adequate evidence of financing within ten (10) days after
such rejection.
(c) In the event that there occurs a default under any Mortgage authorized pursuant to
Section 7.1 ofthis Agreement, the Redeveloper shall cause the Authority to receive copies of any
notice of default received by the Redeveloper from the holder of such Mortgage. Thereafter, the
Authority shall have the right, but not the obligation, to cure any such default on behalf of the
Redeveloper within such cure periods as are available to the Redeveloper under the Mortgage
documents. In the event there is an event of default under this Agreement, the Authority will
transmit to the Holder of any Mortgage a copy of any notice of default given by the Authority
pursuant to Article IX of this Agreement.
(d) In order to facilitate the securing of other financing, the Authority agrees to
subordinate its rights under this Agreement provided that such subordination shall be subject to
such reasonable terms and conditions as the Authority and Holder mutually agree in writing.
Notwithstanding anything to the contrary herein, any subordination agreement must include the
provision described in Section 7.1 (c).
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ARTICLE VIII
Prohibitions Against Assignment and Transfer; Indemnification
Section 8.1. Representation as to Redevelopment. The Redeveloper represents and
agrees that its purchase of the Redevelopment Property, and its other undertakings pursuant to
the Agreement, are, and will be used, for the purpose of redevelopment of the Redevelopment
Property and not for speculation in land holding.
Section 8.2. Prohibition Against Redeveloper's Transfer of Property and Assignment of
Agreement. The Redeveloper represents and agrees that until issuance of the Certificate of
Completion for the Minimum Improvements:
(a) Except as specifically described in this Agreement, the Redeveloper has not made
or created and will not make or create or suffer to be made or created any total or partial sale,
assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of
or with respect to this Agreement or the Redevelopment Property or any part thereof or any
interest therein, or any contract or agreement to do any of the same, to any person or entity
(collectively, a "Transfer"), without the prior written approval of the Authority's board of
commissioners. The term "Transfer" does not include (i) encumbrances made or granted by way
of security for, and only for, the purpose of obtaining construction, interim or permanent
financing necessary to enable the Redeveloper or any successor in interest to the Redevelopment
Property or to construct the Minimum Improvements or component thereof, or (Ii) any lease,
license, easement or similar arrangement entered into in the ordinary course of business related
to operation of the Minimum Improvements.
(b) If the Redeveloper seeks to effect a Transfer prior to issuance of the Cel1ificate of
Completion, the Authority shall be entitled to require as conditions to such Transfer that:
(i) any proposed transferee shall have the qualifications and financial
responsibility, in the reasonable judgment of the Authority, necessary and adequate to
fulfill the obligations undertaken in this Agreement by the Redeveloper as to the portion
of the Redevelopment Property to be transferred; and
(ii) Any proposed transferee, by instrument in writing satisfactory to the
Authority and in form recordable in the public land records of Anoka County, Milmesota,
shall, for itself and its successors and assigns, and expressly for the benefit of the
Authority, have expressly assumed all of the obligations of the Redeveloper under this
Agreement as to the portion of the Redevelopment Propel1y to be trans felTed and agreed
to be subject to all the conditions and restrictions to which the Redeveloper is subject as
to such p011ion; provided, however, that the fact that any transferee of, or any other
successor in interest whatsoever to, the Redevelopment Property, or any part thereof,
shall not, for whatever reason, have assumed such obligations or so agreed, and shall not
(unless and only to the extent otherwise specifically provided in this Agreement or agreed
to in writing by the Authority) deprive the Authority of any rights or remedies or controls
with respect to the Redevelopment Property, the Minimum Improvements or any part
274817v8 MTN CL205-26
21
thereof or the construction of the Minimum Improvements; it being the intent of the
pmiies as expressed in this Agreement that (to the fullest extent permitted at law and in
equity and excepting only in the manner and to the extent specifically provided otherwise
in this Agreement) no transfer of, or change with respect to, ownership in the
Redevelopment Property or any part thereof, or any interest therein, however
consummated or occurring, and whether voluntary or involuntm'y, shall operate, legally,
or practically, to deprive or limit the Authority of or with respect to any rights or
remedies on controls provided in or resulting from this Agreement with respect to the
Redevelopment Property that the Authority would have had, had there been no such
transfer or change. In the absence of specific written agreement by the Authority to the
contrary, no such transfer or approval by the Authority thereof shall be deemed to relieve
the Redeveloper, or any other party bound in any way by this Agreement or otherwise
with respect to the Redevelopment Propeliy, from any of its obligations with respect
thereto; and
(iii) Any and all instruments and other legal documents involved in effecting
the transfer of any interest in this Agreement or the Redevelopment Property governed by
this Aliicle VIII, shall be in a form reasonably satisfactory to the Authority.
( c) If the conditions described in paragraph (b) are satisfied then the Transfer will be
approved and the Redeveloper shall be released from its obligation under this Agreement, as to
the pOliion of the Redevelopment Property that is transferred, assigned, or otherwise conveyed.
The provisions of this paragraph (c) apply to all subsequent transferors, assuming compliance
with the terms of this Article.
(d) Upon issuance of the Certificate of Completion, the Redeveloper
may transfer or assign the Minimum Improvements and/or the Redeveloper's rights and
obligations under this Agreement with respect to such property without the prior written
consent of the Authority.
Section 8.3. Release and Indemnification Covenants. (a) The Redeveloper releases from
and covenants and agrees that the Authority and the City and the governing body members,
officers, agents, servants and employees thereof shall not be liable for and agrees to indemnify
and hold harmless the Authority and the City and the governing body members, officers, agents,
servants and employees thereof against any loss or damage to propeliy or any injury to or death
of any person occurring at or about or resulting from any defect in the Minimum Improvements
or the Public Improvements, except for any such damages or injuries directly related to the gross
negligence of the Authority or the City.
(b) Except for any willful or negligent misrepresentation or any willful or wanton
misconduct or negligence of the following named parties, the Redeveloper agrees to protect and
defend the Authority and the City and the governing body members, officers, agents, servants
and employees thereof (the "Indemnified Parties"), now or forever, and further agrees to hold the
Indemnified Parties harmless from any claim, demand, suit, action or other proceeding
whatsoever by any person or entity whatsoever arising or purpOliedly arising from this
274817v8 MTN CL205-26
22
Agreement, or the transactions contemplated hereby or the acquisition, construction, installation,
ownership, and operation of the Minimum Improvements and Public Improvements.
(c) Except for any negligence of the Indemnified Parties (as defined in clause (b)
above), and except for any breach by ffilY of the Indemnified Parties of their obligations under
this Agreement, the Indemnified Parties shall not be liable for any damage or injury to the
persons or property of the Redeveloper or its officers, agents, servants or employees or any other
person who may be about the Minimum Improvements or Public Improvements due to any act of
negligence of any person.
(d) All covenants, stipulations, promises, agreements and obligations of the Authority
contained herein shall be deemed to be the covenants, stipulations, promises, agreements and
obligations of the Authority and not of any governing body member, officer, agent, servant or
employee of the Authority in the individual capacity thereof.
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ARTICLE IX
Events of Default
Section 9.1. Events of Default Defined. The following shall be "Events of Default"
under this Agreement and the term "Event of Default" shall mean, whenever it is used in this
Agreement, anyone or more of the following events, after the non-defaulting party provides 30
days written notice to the defaulting party of the event, but only if the event has not been cured
within said 30 days or, if the event is by its nature incurable within 30 days, the defaulting party
does not, within such 30-day period, provide assurances reasonably satisfactory to the patty
providing notice of default that the event will be cured and will be cured as soon as reasonably
possible:
(a) Failure by the Redeveloper or the Authority to observe or perform any material
covenant, condition, obligation, or agreement on its part to be observed or performed under this
Agreement;
(b) The Redeveloper:
(i) files any petition in bankruptcy or for any reorganization, arrangement,
composition, readjustment, liquidation, dissolution, or similar relief under the United
States Bankruptcy Act or under any similar federal or State law;
(ii) makes an assignment for benefit of its creditors;
(iii) admits in writing its inability to pay its debts generally as they become
due;
(iv) is adjudicated a bat1krupt or insolvent; or
(v) fails to payor escrow for the Authority's Administrative Costs.
Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section
9.1 of this Agreement occurs, the non-defaulting patty may exercise its rights under this Section
9.2 after providing thirty days written notice to the defaulting patty of the Event of Default, but
only if the Event of Default has not been cured within said thirty days or, if the Event of Default
is by its nature incurable within thirty days, the defaulting party does not provide assurances
reasonably satisfactory to the non-defaulting party that the Event of Default will be cured and
will be cured as soon as reasonably possible:
(a) Take whatever action, including legal, equitable or administrative action, which
may appear necessary or desirable to collect any payments due under this Agreement, or to
enforce performance and observance of any obligation, agreement, or covenant under this
Agreement.
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Section 9.3. Revesting Title in Authoritv Upon Happening of Event Subsequent to
Convevance to Redeveloper. In the event that subsequent to conveyance of the Redevelopment
Property to the Redeveloper and prior to receipt by the Redeveloper of the Certificate of
Completion for the Minimum Improvements required to be constructed on that parcel:
(a) the Redeveloper, subject to Unavoidable Delays, shall fail to begin construction
of the Minimum Improvements in conformity with this Agreement and such failure to begin
construction is not cured within 90 days after written notice from the Authority to the
Redeveloper to do so; or
(b) subject to Unavoidable Delays, the Redeveloper after commencement of the
construction of the Minimum Improvements, fails to canoy out its obligations with respect to the
construction of such improvements (including the nature and the date for the completion
thereof), or abandons or substantially suspends construction work, and any such failure,
abandonment, or suspension shall not be cured, ended, or remedied within 90 days after written
demand from the Authority to the Redeveloper to do so; or
(c) the Redeveloper fails to pay real estate taxes or assessments on the parcel or any
part thereof when due, or creates, suffers, assumes, or agrees to any encumbrance or lien on the
parcel (except to the extent permitted by this Agreement), or shall suffer any levy or attachment
to be made, or any material men's or mechanics' lien, or any other unauthorized encumbrance or
lien to attach, and such taxes or assessments shall not have been paid, or the encumbrance or lien
removed or discharged or provision satisfactory to the Authority made for such payment,
removal, or discharge, within thirty (30) days after written demand by the Authority to do so;
provided, that if the Redeveloper first notifies the Authority of its intention to do so, it may in
good faith contest any mechanics' or other lien filed or established and in such event the
Authority shall permit such mechanics' or other lien to remain undischarged and unsatisfied
during the period of such contest and any appeal and during the course of such contest the
Redeveloper shall keep the Authority informed respecting the status of such defense; or
(d) there is, in violation of the Agreement, any transfer of the parcel or any part
thereof, and such violation is not cured within sixty (60) days after written demand by the
Authority to the Redeveloper, or if the event is by its nature not reasonably susceptible of being
cured within 60 days, the Redeveloper does not, within such 60-day period, provide assurances
reasonably satisfactory to the Authority that the event will be cured as soon as reasonably
possible; or
(e) the Redeveloper fails to comply with any of its other covenants under this
Agreement, including failure to complete Environmental Remediation as provided in Section 3.8
related to the Minimum Improvements and fails to cure any such noncompliance or breach
within thirty (30) days after written demand from the Authority to the Redeveloper to do so, or if
the event is by its nature incurable within 30 days, the Redeveloper does not, within such 30-day
period, provide assurances reasonably satisfactory to the Authority that the event will be cured as
soon as reasonably possible; or
274817v8 MTN CL2Q5-26
25
Then the Authority shall have the right to re-enter and take possession of the parcel and
to terminate (and revest in the Authority) the estate conveyed by the Deed to the Redeveloper, it
being the intent of this provision, together with other provisions of the Agreement, that the
conveyance of the parcel to the Redeveloper shall be made upon, and that the Deed shall contain
a condition subsequent to the effect that in the event of any default on the part of the
Redeveloper described in this Section 9.3 and failure on the part of the Redeveloper to remedy,
end, or abrogate such default within the period and in the manner stated in such Section, the
Authority at its option may declare a termination in favor of the Authority of the title, and of all
the rights and interests in and to the parcel conveyed to the Redeveloper, and that such title and
all rights and interests of the Redeveloper, and any assigns or successors in interest to and in the
parcel, shall revert to the Authority, but only if the events stated in Section 9.3(a)-(e) have not
been cured within the time periods provided above.
Section 9.4. Resale of Reacquired Propeliv; Disposition of Proceeds. Upon the revesting
in the Authority of title to and/or possession of the Redevelopment Property or any pmi thereof
as provided in Section 9.3, the Authority shall, pursuant to its responsibilities under law, use its
best effOlis to sell the Redevelopment Propeliy or part thereof as soon and in such manner as the
Authority shall find feasible and consistent with the objectives of such law and of the
Redevelopment Plan to a qualified and responsible pmiy or parties (as determined by the
Authority) who will assume the obligation of making or completing the Minimum Improvements
or such other improvements in their stead as shall be satisfactory to the Authority in accordance
with the uses specified for such Redevelopment Property or part thereof in the Redevelopment
Plan. Upon resale of the parcel, the proceeds thereof shall be applied:
(a) First, to reimburse the Authority for all costs and expenses incurred by them,
including but not limited to salaries of personnel, in connection with the recapture, management,
and resale of the parcel (but less any income derived by the Authority from the property or part
thereof in connection with such management); all taxes, assessments, and water and sewer
charges with respect to the parcel or pmi thereof (or, in the event the parcel is exempt from
taxation or assessment or such charge during the period of ownership thereof by the Authority,
an amount, if paid, equal to such taxes, assessments, or charges (as determined by the Authority
assessing official) as would have been payable if the parcel were not so exempt); any payments
made or necessary to be made to discharge any encumbrances or liens existing on the parcel or
pm thereof at the time of revesting of title thereto in the Authority or to discharge or prevent
from attaching or being made any subsequent encumbrances or liens due to obligations, defaults
or acts of the Redeveloper, its successors or transferees; any expenditures made or obligations
incurred with respect to the making or completion of the subject improvements or any pmt
thereof on the parcel or part thereof; and any amounts otherwise owing the Authority by the
Redeveloper and its successor or transferee; and
(b) Second, to reimburse the Redeveloper, its successor or transferee, up to the
amount equal to (I) the purchase price paid by Redeveloper under Section 3.2; plus (2) the
amount actually invested by it in making any of the subject improvements on the parcel or part
thereof.
274817v8 MTN CL205-26
26
Any balance remaining after such reimbursements shall be retained by the Authority as
its property.
Section 9.5. No Remedy Exclusive. No remedy herein conferred upon or reserved to the
Authority or Redeveloper is intended to be exclusive of any other available remedy or remedies,
but each and every such remedy shall be cumulative and shall be in addition to every other
remedy given under this Agreement or now or hereafter existing at law or in equity or by statute.
No delay or omission to exercise any right or power accruing upon any default shall impair any
such right or power or shall be construed to be a waiver thereof, but any such right and power
may be exercised from time to time and as often as may be deemed expedient. In order to entitle
the Authority to exercise any remedy reserved to it, it shall not be necessary to give notice, other
than such notice as may be required in this Article IX.
Section 9.6. No Additional Waiver Implied by One Waiver. In the event any agreement
contained in this Agreement should be breached by either party and thereafter waived by the
other party, such waiver shall be limited to the particular breach so waived and shall not be
deemed to waive any other concurrent, previous or subsequent breach hereunder.
Section 9.7. Attorney Fees. Whenever any Event of Default occurs and if the Authority
or Redeveloper shall employ attorneys or incur other expenses for the collection of payments due
or to become due or for the enforcement of performance or observance of any obligation or
agreement on the part of the Redeveloper or Authority under this Agreement, the non-prevailing
party in any such action agrees that it shall, within 10 days of written demand by the prevailing
party, pay to the prevailing party the reasonable fees of such attorneys and such other reasonable
expenses so incUlTed.
274817v8 MTN CL205-26
27
ARTICLE X
Additional Provisions
Section 10.1. Conflict of Interest Authoritv Representatives Not Individuallv Liable.
The Authority and the Redeveloper, to the best of their respective knowledge, represent and
agree that no member, official, 01' employee of the Authority shall have any personal interest,
direct 01' indirect, in the Agreement, nor shall any such member, official, 01' employee pmiicipate
in any decision relating to the Agreement which affects his personal interests 01' the interests of
any corporation, pminership, 01' association in which he is, directly or indirectly, interested. No
member, official, or employee of the Authority shall be personally liable to the Redeveloper, or
any successor in interest, in the event of any default 01' breach by the Authority 01' County 01' for
any amount which may become due to the Redeveloper 01' successor 01' on any obligations under
the terms of the Agreement.
Section 10.2. Equal Emplovment Opportunitv. The Redeveloper, for itself and its
successors and assigns, agrees that during the construction of the Minimum Improvements
provided for in the Agreement it will comply with all applicable federal, state and local equal
employment and non-discrimination laws and regulations.
Section 10.3. Restrictions on Use. The Redeveloper agrees that until the Termination
Date, the Redeveloper, and such successors and assigns, shall devote the Redevelopment
Property to, the operation of the Minimum Improvements for uses described in the definition of
such term in this Agreement, and shall not discriminate upon the basis of race, color, creed, sex
01' national origin in the sale, lease, 01' rental 01' in the use 01' occupancy of the Redevelopment
Property 01' any improvements erected 01' to be erected thereon, 01' any part thereof.
Section 10.4. Provisions Not Merged With Deed. None of the provisions of this
Agreement are intended to 01' shall be merged by reason of any deed transferring any interest in
the Redevelopment Propeliy and any such deed shall not be deemed to affect 01' impair the
provisions and covenants of this Agreement.
Section 10.5. Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of the Agreement are inselied for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 10.6. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand, 01' other communication under the Agreement by either party to
the other shall be sufficiently given 01' delivered if it is dispatched by registered 01' celiified mail,
postage prepaid, return receipt requested, 01' delivered personally; and
(a) in the case ofthe Redeveloper, is addressed to or delivered personally to the
Redeveloper at 4329 Central Avenue NE, Columbia Heights, MN 55421; and
274817v8 MTN CL205-26
28
(b) in the case of the Authority, is addressed to or delivered personally to the
Authority at 590 - 40th Avenue NE, Columbia Heights, Minnesota 55421, Attn: Executive
Director; or at such other address with respect to either such party as that party may, from time to
time, designate in writing and forward to the other as provided in this Section.
Section 10.7. Counterparts. This Agreement may be executed m any number of
counterparts, each of which shall constitute one and the same instrument.
Section 10.8. Recording. The Authority may record this Agreement and any
amendments thereto with the Anoka County recorder. The Redeveloper shall pay all costs for
recording.
Section 10.9. Amendment. This Agreement may be amended only by written agreement
approved by the Authority and the Redeveloper.
Section 10.1 O. Authoritv or Citv Approvals. Unless otherwise specified, any approval
required by the Authority under this Agreement may be given by the Authority Representative.
Section 10.11. Termination. This Agreement terminates on the date the City issues the
Certificate of Completion, except that termination of the Agreement does not terminate, limit or
affect the rights of any party that arises before the date the City issues the Certificate of
Completion, or as otherwise provided herein.
274817v8 MTN CL20S-26
29
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed
in its name and behalf and its seal to be hereunto duly affixed and the Redeveloper has caused
this Agreement to be duly executed in its name and behalf on or as of the date first above written.
COLUMBIA HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY
By
Its President
By
Its Executive Director
STATE OF MINNESOTA )
) ss.
COUNTYOFANOKA )
The foregoing instrument was acknowledged before me this _ day of
2006, by and , the President and Executive Director
of the Columbia Heights Economic Development Authority, a public body politic and corporate,
on behalf of the Authority.
Notary Public
274817v8 MTN CL205-26
30
SARNA'S, INe.
By
Its
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of
, 2006 by , the of Sarna's,
Inc., a Minnesota limited liability company, on behalf of the company.
Notary Public
274817v8 MTN CL205-26
31
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274817v8 MTN CL205-26
A-I
SCHEDULE B
GONDEK AGREEMENT
274817v8 MTN CL205-26
B-1
AGREEMENT OF EASEMENTS AND COVENANTS
TI-IIS AGREEMENT OF EASEMENTS AND COVENANTS ("Agreement") is made as
of the 6~day of May, 2006, by and between Michael Gondek, single ("Gondek") and Sarna's,
Inc., a Minnesota corporation ("Sama") for the purposes stated below.
WITNESSETH
WHEREAS, Sarna is the owner of real property described on Exhibit A attached hereto
("Sama Property"). Sama intends to construct a bar/restaurant on the Sama Propelty ("Project");
and
WHEREAS, Gondek is the owner of real propeliy described on Exhibit B attached
hereto, which is adjacent to and contiguous to the Sarna Property ("Gondek Property"); and
WHEREAS, Sama has agreed to provide an egress easement through a portion of the
Sama Property for the benefit of the Gondek Property and Gondek has agreed to provide an
egress easement through a portion of the Gondek Propeliy for the benefit of the Sama Property;
and .
WHEREAS, as pati of the proposed development of the Project on the Sarna Property,
the City of Columbia Heights ("City") has agreed to vacate Lookout Place Street ("Lookout")
and all that pOliion of the vacated Lookout is included within the Sama Property; and
WHEREAS, in consideration of the Reciprocal Easement Grant as contained in this
document and other good and valuable consideration, Gondek has agreed to convey to Sarna any
rights to that pOliion of Lookout which shall be vacated wd which accrues to the Gondek
Property, and agrees to convey to Sama by quit claim deed, that pOliion of vacated Lookout
which accrues to the Gondek Propelty as a result of the vacation of Lookout.
NOW, THEREFORE, for good and valuable consideration, the receipt of which is hereby
acknowledged, Sama and Gondek agree as follows:
A. Egress Over Sarna Propeliy.
1. Grant of Egress Easement I Access Drive I Sama. Sarna hereby grants and
conveys for the benefit of the Gondek Property and for the use of the tenants, occupants,
contractors, licensees and business invitees of the Gondek Propeliy, in common with others
entitled to use the same, and subject to the reservations set forth in this Ariicle, a non-exclusive,
perpetual egress easement for the passage and accommodation of pedestrians and vehicles (but
not for parking purposes) upon, over and across that portion of the Sama Properly identified as
"Gondek Property's Egress" in the location shown on Exhibit C attached hereto (the "Gondek
Egress Access Drive") which easement shall run with and bind the Sarna Propeliy. The
easement herein established shall be appmienant to and for the benefit of the Gondek Propeliy,
and shall be binding on, enforceable against and burden the Sarna Property. The easement
created herein shall commence upon the completion of the construction of the Gondek Egress
Access Drive and shall continue thereafter and run with and benefit the Gondek Propeliy.
Regardless of any provision to the contrary contained in this Paragraph 1, the easement grant by
Sarna for the benefit of the Gondek Propeliy shall only be used for egress purposes from the
Gondek Propeliy through the Gondek Egress Access Drive.
2. Prescriptive Rights. Sarna hereby reserves the right to close-off any portion of the
Gondek Egress Access Drive for such reasonable period of time as may be legally necessary to
prevent the acquisition of prescriptive rights by anyone; provided, however, that the owner of the
Sarna Propeliy shall attempt to coordinate such closing-off so that no unreasonable interference
with the passage of pedestrians or vehicles through the Gondek Egress Access Drive shall occur
to and from the Gondek Property during normal business hours.
3. Points of Access. Points of access b<<tween the Gondek Propeliy and the Sama
Propeliy shall be limited to the area shown on Exhibit C, and in no event shall ,a curb cut or
point of access from the Sama Property to the Gondek Properiy be allowed other than in the
location shown on Exhibit C.
4. Reservation of Rights. Sama hereby reserves and retains all of the property rights
in and to the Gondek Egress Access Drive, including without limitation, the right to use the
Gondek Egress Access Drive for any pmvose whatsoever so long as such use does not
unreasonably interfere with Gondek's rights hereunder, it being expressly understood that the use
of the surface of the Gondek Egress Access Drive by Sarna for vehicular traffic or pedestrian
traffic would not be deemed to substantially interfere with Gondek's. rights hereunder and that
Sarna may locate electric, gas and water lines and other utilities within the Gondek Egress
Access Drive so long as such improvements do not umeasonably interfere with Gondek's
pelmitted use of the Gondek Egress Access Drive.
B. Egress Over Gondek Propeli)'.
1.
conveys for
Grant of Egress Easement I Access Drive I Gondek. Gondek hereby grants and
the benefit of the Sarna Property and for the use of the tenants, occupants,
2
contractors, licensees and business invitees of the Sarna Property, in common with others entitled
to use the same, and subjyct to the reservations set forth in this Article, a non-exclusive,
perpetual egress easement for the passage and accommodation of pedestrians and vehicles (but
not for parking purposes) upon, over and across that portion of the Gondek Propcrty identified as
"Sallla Property's Egress" in the location shown on Exhibit C attached hereto (the "Sal11a Egress
Access Drive") which easement shall run with and bind the Gondek Property. The easement
herein established shall be appmtenant to and for the benefit of the Sal11a Property, and shall be
binding on, enforceable against and burden the Gondek Property. The easement created herein
shall commence upon the completion of the construction of the Gondek Egress Access Drive by
Sarna and shall continue thereafter and run with and benefit the Sal11a Property. RegaJdless of
any provision to the contrmy contained in this Paragraph I, the easement grant by Gondek for the
benefit of the Sarna Property shall only be used for egress purposes from the Sarna Property
through the Sallla Egress Access Drive.
2. Prescriptive Rights. Gondek hereby reserves the right to close-off any portion of
the Sarna Egress Access Drive for such reasonable period of time as may be legally necessary to
prevent the acquisition of prescriptive rights by anyone; provided, however, that the owner of the
Gondek Property shall attempt to coordinate such closing-off so that no umeasonable
interference with the passage of pedestrians or vehicles through the Sarna Egress Access Drive
shall occur to and from the Sarna Property during normal business hours.
3. Points of Access. Points of access between the Sarna Property and the Gondek
Property shall be limited to the mea shown on Exhibit C, and in no event shall a curb cut or
point of access from the Gondek Property to the Sarna Property be allowed other than in the
location shown on Exhibit C.
4. Reservation of Rights. Gondek hereby reserves and retains all of the property
rights in and to the Sama Egress Access Drive, including without limitation, the right to use the
Sal11a Egress Access Drive for any purpose whatsoever so long as such use does not
umeasonably interfere with Sama's rights hereunder, it being expressly understood that the use
of the surface of the Sama Egress Access Drive by Gondek for vehicular traffic or pedestrian
traffic would not be deemed to substantially interfere with Sama's rights hereunder and that
Gondek may locate electric, gas and water lines and other utilities within the Sarna Egress
Access Drive so long as such improvements do not unreasonably interfere with Sal11a's permitted
use of the Sal11a Egress Access Drive.
C. Gondek Easement I Sal11a Easement I Time Limit Restrictions I.Gate.
I. Construction of a Gate. Sarna shall construct and install a gate separating the
Sarna Property and Gondek Property and restricting access to the Gondek Egress Access Drive
and Sal11a Egress Access Drive as shown on Exhibit C attached hereto ("Gate").
2. Operation of Gate. The Gate as constructed shall be opened to allow egress to and
from the Sama Property and Gondek Property pursuant to the Easement grants. as contained
herein between the hours of 8:00 a.m. and 5:30 p.m., Monday through Saturday only. Either
3
Gondek or Sarna will be responsible for opening the Gate at 8:00 a.m. on Monday through
Saturday. Sarna will' be responsible for locking the Gate at the close of business at 5:30 p.m. or
later on Monday through Saturday. Gondek and Sama agree to use all reasonable efforts to
ensure the closure of the Gate after 5:30 p.m. and before 8:00 a.m. as provided above. The Gate
shall have a padlock on the same and Gondek, Sarna and the City will be provided a key for the
lock on the Gate.
D. Maintenance I Sarna Egress Access Drive I Gondek Egress Access Drive. Both Sarna
and Gondek shall be required to maintain the egress area located on its Property, including any
replacement due to ordinaty wear atld teat., all at it sole cost and expense, including, but not
limited to, parking lot overlays. In no event shall either Gondek or Sarna modify the Easement
Area on each patties Property so as to in myway restrict the use of the Easement Area by the
other party as provided in this Agreement.
E. Indemnification.
I. Sarna. Sarna for itself atld its successors and assigns, and all of its licensees,
concessionaires, agents, servants or employees or the agents, servants or employees of atlY
licensee or concessionaire agrees to and hereby does, defend, protect, indemnify and hold
harmless Gondek from and against all claims or demands, including any action or proceeding
brought thereon, and all costs, losses, expenses md liabilities of any kind relating thereto,
including reasonable attorneys' fees and cost of suit, arising out of or resulting from the exercise
of the right to use the Gondek Egress Access Drive; provided, however, the foregoing obligation
shall not apply to claims or demmds based on the negligence or the willful act or omission of
Gondek, its licensees, concessionaires, agents, servmts, or employees or the agents, servmts, or
employees of atlY licensee or concessionaires.
.
2. Gondek, Gondek for itself and its successors md assigns, and all of its licensees,
concessionaires, agents, servants or employees or the agents, serVatlts or employees of any
licensee or concessionaire agrees to md hereby does, defend, protect, indemnify and hold
harmless Sarna from and against all claims or demmds, including any action or proceeding
brought thereon, and all costs, losses, expenses and liabilities of any kind relating thereto,
including reasonable attorneys' fees and cost of suit, arising out of or resulting from the exercise
of the right to use the Sarna Egress Access Drive; pro'vided, however, the foregoing obligation
shall not apply to claims or demands based on the negligence or the willful act or omission of
Sarna, its licensees, concessionaires, agents, serVatlts, or employees or the agents, servants, or
employees of any licensee or concessionaires.
{{f-~
F. Insuratlce. During the ternl of this Agreement, each patty, for itself and its successors and
assigns, agrees to and shall maintain or cause to be maintained in full force and effect at least the
minimum insurance requirements with respect to each Egress Drive in the amount of Five
Hundred Thousand Dollars ($500,000.00) in commercial general liability insurance, bodily
injury, personal injury atld property damage, arising out of my one occurrence. Gondck and
$ama: Emd their respoctive successors and assigns shall bo name.J "additional insureds" ~1l1der
es~h "the'" p"Jic;, ", it "pplie, t9 A cc~,~ f)rj,,~ on ~~ch patties Pwpmty. All insui'ance required
4
shall be written on an occunence basis and procured from companies rated by Best's Rating
Guide not less than A-rx, ffi,ld which are authorized to do business in the State of Minnesota. In
no event shall any deductible exceed $15,000.00. Gondek and Sa111a agree to supply each other,
and its successors and assigns in interest in their Property, a certificate(s) of insurance,
evidencing that the insurance required to be canied by such parties is in full force and effect and
that the insured party is an additional insured under such insurance pursuant to the requirements
of this Agreement. Each insurance policy shall provide that the policy shall not be canceled or
reduced in amount or coverage required above, nor be allowed to expire without at least thirty
(30) days prior written notice by the insurer to each one of the additional insureds.
G. Convevance of Vacated Lookout/Gondek. Gondek, in consideration of Sarna's grant of
the easement and upon request by Sarna, shall provide a quit claim deed to that pOliion of
vacated Lookout which accrues to the Gondek Propeliy. Gondek shall provide to Sarna a fully
executed and recordable quit claim deed within ten (10) days after Sama's request of the same
from Gondek.
H. Contingencies. This Agreement and all obligations of Sarna and Gondek are contingent
npon Sarna successful purchase of the Sarna Property. In the event Sama is unable to successful
complete the acquisition of the Sama Propeliy from the City, then in such event, all obligations
of Sa111a and Gondek shall hereby tenninate and Gondek and Sa111a shall nofuliher rights or
obligations under the terms and conditions of this Agreement.
l. Construction License. Gondek hereby grants to Sa111a a construction license to enter that
portion of the Gondek Propeliy reasonably required by Sa111a to accornn10date the construction of
the Gate as contemplated by this Agreement. The construction easement shall tenninate npon the
completion of all construction work on the Sa111a Propeliy.
.
1. Successors and Assigns. Sama and Gondek, wherever used in this in~trument, are
intended in any instance to include the successors and assigns. of said Gondek and Sarna, as the
owners of the Gondek Egress Access Drive and Sama Egress Access Drive.
K. Miscellaneous. This Agreement shall be governed by and construed in accordance with
the laws of the State of Mirmesota. This Agreement shall not be construed for or against Sama
and Gondek. The captions are inserted in this Agreement only for convenience of reference and
do not define, limit or describe the scope or intent of any provisions of this Agreement. This
Agreement may be signed in connterparts, each of which shall be deemed to be an original and
all of which when take together shall constitnte on instrument.
[Signatures will appear on the following page}
5
~e,gn/hi' A",ocm,"' elml,l bi"d gnd ,,,Iy '" fu, PM'~"~"W" ""d
GONDEK: ----c .--
Michae Gondek
SARNA:
Sarna's, Inc.,
a Minnesota corporation
By:
~A/~
J nes A. Sarna
Its: President
STATE OF MINNESOTA )
) ss,
COUNTY OF ANOKA )
The foregoing instmment was acknowledged before me this S<.-\- day of May, 2006, by
Mi'lmilck'":~~~",m" ~ (l~.,
NOlllry Public-Slate of Minnesota - -~. -
, My Comm;'~on E'plro.s Notol'V Pub I' C
JanuarY31,2010 y.;
STATE OF MINNESOTA )
) ss.
COUNTYOFANOKA )
.
Syt..
The foregoing instrument was acknowledged before me this _ day of May, 2006, by
James A. Sama, the President of Sarna's, Inc., a Minnesota corporation, on behalf of the
corporation.
GORDON B, SOLI
Notary Public-Slale of Minnesota
My Commission Expires
JanuorY31,2010
THIS INSTRUMENT WAS DRAFTED BY:
Bama, Guzy & Steffen, Ltd.
400 Northtown Financial Plaza
200 Coon Rapids Boulevard
Mimleapolis, Mimlesota 55433
(763) 780-8500 (MFH)
325800_4
,6
EXHIBIT A
SARNA PROPERTY
Lot 1, Block 1, Sama's Addition, Anoka County, Minnesota.
.
7
EXHIBIT B
GONDEK PROPERTY
Lots 13 and 14, Block 68, Columbia Heights Almex to Mim1eapolis, Anoka County, Minnesota.
.
8
EXHIBIT C
,
ACCESS DRIVES / GATE DEPICTION
.
9
EXHIBIT C
May, 01 2005 03:04PM P3
FROM : SSVAr ch 1 te c ture
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SCHEDULE C
CERTIFICATE OF COMPLETION
WHEREAS, the Columbia Heights Economic Development Authority, Columbia
Heights, Minnesota, a public body, corporate and politic (the "Grantor"), by a Deed recorded in
the Office of the County Recorder or the Registrar of Titles in and for the County of Anoka and
State of Minnesota, as Deed Document Number(s) and , respectively,
has conveyed to , a Minnesota (the "Grantee"), the
following described land in County of Anoka and State of Minnesota, to-wit:
(the "Property")
and
WHEREAS, said Deed contained certain covenants and restrictions set forth in Sections
1 and 2 of said Deed; and
WHEREAS, said Grantee has performed said covenants and conditions with respect to
the Property insofar as it is able in a manner deemed sufficient by the Grantor to permit the
execution and recording of this certification;
NOW, THEREFORE, this is to certify that all building construction and other physical
improvements specified to be done and made by the Grantee on the Property have been
completed and the above covenants and conditions in said Deed and the agreements and
covenants in Article IV ofthe Agreement (as described in said Deed) with respect to the Property
have been performed by the Grantee therein, and the County Recorder or the Registrar of Titles
in and for the County of Anoka and State of Minnesota is hereby authorized to accept for
recording and to record, the filing of this instrument, to be a conclusive determination of the
satisfactory termination of the covenants and conditions of Article IV of the Agreement with
respect to the Property,
Dated:
,20_
COLUMBIA HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY
By
Its President
By
Its Executive Director
274817v8 MTN CL205-26
C-l
STATE OF MINNESOTA )
) ss.
COUNTY OF ANOKA )
On this _ day of ,20_, before me, a Notary Public within and for said
County, personally appeared , to me personally known, who, being
by me duly sworn, did say that (s)he is the President of the Authority named in the foregoing
instrument; that the seal affixed to said instrument is the seal of said Authority; that said
instrument was signed and sealed in behalf of said Authority by authority of its governing body;
and said acknowledged said instrument to be the free act and deed of said
Authority.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF ANOKA )
On this _ day of ,20_, before me, a Notary Public within and for said
County, personally appeared , to me personally known, who, being
by me duly sworn, did say that (s)he is the Executive Director of the Authority named in the
foregoing instrument; that the seal affixed to said instrument is the seal of said Authority; that
said instrument was signed and sealed in behalf of said Authority by authority of its governing
body; and said acknowledged said instrument to be the free act and deed of said
Authority.
Notary Public
274817v8 MTN CL205-26
C-2
SOIL CORRECTION COSTS
SARNA RESTAURANT
Below is a list of costs to be incurred by developer for soil correction to correct existing site soil
conditions prior to incurring any of the other predevelopment costs. Please note that these
revised numbers are based upon Developer agreeing to revise all plans to delete the proposed
basement on the property and construct a slab-on grade restaurant. Based upon previous bids, if
a basement is constructed, additional soil correction costs would exceed $300,000.00. Below is
an estimate of additional soil correction costs which would be incurred by Developer related
directly to soil correction only based upon bids and re-bids by Frattalone Companies and Atlas
Foundation Co.
1. Additional costs for subsurface exploration required
By geotechnical engineer for entire site
$5,000.00
2. Cost of74 concrete filled pipe piles 30 feet deep
(bid by Atlas)
$59,950.00
3. Estimate for grade beam and structural floor SUppOlts
in connection with installation of concrete filled pipe piles
$30,000.00
4. Additional value engineering for concrete filled piles for
The foundation of the building
$5,000.00
5. Removal and disposal of contaminated soils on site
$5,000.00
6. Environmental Audit (old gas station site), including
Minnesota Pollution Control Application, Phase I, Phase II,
drilling of environmental contaminated area, costs for soil
and groundwater testing, pre-demolition inspection in prepara-
tion for Development Response Action Plan from the MPCA
(Bid from ProSource Technologies)
$10,400.00
7. Costs to install a vapor barrier for building required as a result
Of contaminated soil located at the old gas station site
$5,000.00
TOTAL
$120,350
274817v8 MTN CL20S.26
C-3
274817v8 MTN CL205-26
SCHEDULE D
ENVIRONMENTAL REMEDIATION COSTS
D-l
SCHEDULE E
Intentionally Deleted
274817v8 MTN CL205-26
E-l
EXHIBIT F
ESCROW CALCULATIONS
DEVELOPER IMPROVEMENTS
1. Erosion Control! Restoration (1 acre) $ 10.000
2. Public Improvements (alley, sidewalk, $ 30.000
utility disconnects, and street removals
and restoration)
3. Street Lighting! CD Siren $ 3.800
4. ME Global Drive Access and utility $ 9.500
relocation
5.
MGS Bldg. Demo
$ 12.000
$ 10.000
6.
Administration (legal)
MULTIPLIED BY:
1.25
EQUALS
$ 94,125
For the above work, DEVELOPER shall post a Letter of Credit for $ 94,125.
In addition to the letter of credit required above, the DEVELOPER shall also deposit
$2,500 in cash with the CITY contemporaneously with execution of this DEVELOPMENT
CONTRACT. This $2,500 shall be to pay the CITY for engineering plan review and
inspection fees at the CITY's standard rates charged for such tasks. Upon acceptance of
the DEVELOPER PUBLIC IMPROVEMENTS, the CITY shall return to the
DEVELOPER any remaining portion of the $2,500 not othenvise charged against the
DEVELOPOER for engineering inspection performed by the CITY. To the extent the
engineering inspection fees, calculated according to the CITY's standard rates, exceed the
$2,500 deposit, the DEVELOPER is responsible for payment of such excess within thirty
(30) days after billing by the CITY.
274817v8 MTN CL205-26
F-l
In addition to the Letter of C"edit required above, the DEVELOPER shall pay to the CITY
the amount of $ 37.400 as a STORM WATER MANAGEMENT FEE in lieu of
constructing on-site storm water facilities as required in City Code Section 9.609.
4/21/06
CONSIDER OTHER ADDITIONS:
ESCROW REOUlREMENT. Contemporaneously herewith, the DEVELOPER shall deposit with
the CITY an irrevocable letter of credit, or cash deposit for the amounts set fOlth on Exhibit F.
All cost estimates shall be acceptable to the DIRECTOR OF PWD. The total
escrow amount was calculated as shown on the attached Exhibit F. The bank and
form of the irrevocable letter of credit, or cash deposit shall be subject to approval
by the City Finance Director and City Attorney and shall continue to be in full
force and effect until released by the CITY. The irrevocable letter of credit shall
be for a term ending December 31, 2006. In the alternative, the letter of credit
may be for a one year term provided it is automatically renewable for successive
one year periods from the present or any future expiration dates with a final
expiration date of December 31, 2006, and further provided that the irrevocable
letter of credit states that at least sixty (60) days prior to the expiration date the
bank will notify the City that if the bank elects not to renew for an additional
period. The irrevocable letter of credit shall secure compliance by the
DEVELOPER with the terms of this DEVELOPMENT CONTRACT. The CITY
may draw down on the irrevocable letter of credit or cash deposit, with written
notice relating to a DEVELOPER DEFAULT, for any of the following reasons:
a) a DEVELOPER DEFAULT; or
b) upon the CITY receiving notice that the irrevocable letter of credit will be allowed to
lapse before December 31, 2006.
With CITY approval, the irrevocable letter of credit or cash deposit may be reduced from
time to time as financial obligations are paid.
ESCROW RELEASE AND ESCROW INCREASE: DEVELOPER IMPROVEMENTS. Periodically,
upon the DEVELOPER's written request and upon completion by the DEVELOPER and
acceptance by the CITY of any specific DEVELOPER IMPROVEMENTS, ninety percent
(90%) of that portion of the irrevocable letter of credit, or cash deposit covering those specific
completed improvements only shall be released. The final ten percent (10%) of that portion of
the irrevocable letter of credit, or cash deposit, for those specific completed improvements shall
be held until acceptance by the CITY and expiration of the one year wal1'anty period under
Section 1.15 hereof; in the alternative, the DEVELOPER may post a bond satisfactory to the
CITY with respect to the final ten percent (10%).
If it is determined by the CITY that the DEVELOPMENT PLANS were not strictly
adhered to, or that work was done without CITY inspection, the CITY may require, as a
274817v8 MTN CL205-26
F-2
condition of acceptance, that the DEVELOPER post a irrevocable letter of credit, or cash deposit
equal to 125% of the estimated amount necessary to correct the deficiency or to protect against
deficiencies arising there from. Said additional irrevocable letter of credit, or cash deposit, shall
remain in force for such time as the CITY deems necessary, not to exceed two (2) years. In the
event that work, which is concealed, was done without permitting CITY inspection, then the
CITY may, in the alternative, require the concealed condition to be exposed for inspection
purposes.
The OWNER and the CITY hereby agree that the removal of the University Service Drive shall
require the relocation of the driveway(s) serving the property at 3901 University Avenue NE
(also referred to as ME GLOBAL). The design and construction of the driveway relocations shall
be the responsibility of the CITY. The cost for such relocation shall be based upon a prorated
share of the University Frontage Road from 37th to 40th Avenues to abutting properties,
excluding the frontage of 3901 University Avenue. The new Driveway Relocation shall be
constructed and accessible prior to the removal of the University Service Drive from 37th to 40th
Avenues, as required by the CITY. The cost for the Project is estimated to be $
and Developer shall be responsible to pay no more than fOUlieen percent (14%) of the Project
Cost.
RELEASE OF DEVELOPMENT CONTRACT. Upon completion of all DEVELOPER
IMPROVEMENTS and all DEVELOPER PUBLIC IMPROVEMENTS, and upon the expiration
of the TWO YEAR WARRANTY ON PROPER WORK AND MATERIALS, the
DEVELOPER may submit to the CITY a draft release of this DEVELOPMENT CONTRACT
for review and approval by the CITY's attorney. The CITY agrees to cooperate with the
DEVELOPER to process a recordable release of this DEVELOPMENT CONTRACT for title
purposes provided that said improvements have been completed and said warranties have
expired.
LANDSCAPING. Installation and Maintenance. The following regulations shall govern the
installation and maintenance of landscaping and screening materials.
All landscaping materials and screening materials shall be installed in conjunction with site
development and prior to issuance of a final certificate of occupancy.
A letter of credit or other security as acceptable to the CITY shall be deposited with the Zoning
Administrator, in an amount equal to ten percent (10%) of the estimated cost of landscaping
and/or screening. The letter of credit or other security as acceptable to the CITY, or pOliions
thereof, shall be forfeited to maintain and/or replace materials for a period of time to include at
least two (2) growing seasons. A portion of the letter of credit or other security as acceptable to
the CITY may be released after one growing season as determined by the Zoning Administrator.
The propeliy owner shall be responsible for continued maintenance of landscaping and screening
materials to remain in compliance with the requirements of this Section. Plant materials that
show signs of disease or damage shall be promptly removed and replaced within the next
planting season.
327917_5
274817v8 MTN CL205-26
F-3
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
Meetina of May 23, 2006
AGENDA SECTION: Business Items ORIGINATING EXECUTIVE
NO: 6 DEPARTMENT: DIRECTOR
Community Development APPROVAL
ITEM: Preliminary Development Agreement BY: Robert Streetar BY:
between the EDA and Sherman & Associates DATE: May 17, 2006
BACKGROUND:
Staff recommends the EDA enter into a preliminary development agreement with Sherman
and Associates, Inc. for the purpose of preparing a redevelopment proposal for the 39th
and Central Avenues project area. The redevelopment of this area has been a priority
since January 2002. Since that time the EDA has completed a number of tasks to that
end.
. Acquired and demolished the Burger King.
. Completed inspections of all three properties, which show all three properties, are
blighted; consequently the project area qualifies as a tax increment-financing
district.
. Completed a phase one environmental site assessment, which indicates a high
probability of contaminated soils.
. Completing the phase two environmental site assessment. This assessment is
expected to be complete in August.
. Completed real estate and fixture appraisals.
. Toured six other infill redevelopment sites in other metro area cities
. Prepared four redevelopment concepts with assistance of DSU, the EDA's planning
consultant, and voluntary input from Mr. Loren Bruggemann of Sherman and
Associates. Sherman and Associates have successfully completed a variety of
residential, commercial, and mixed-used in-fill redevelopment projects in the metro
area as well as in other cities in the Midwest. Please see the attached concepts.
Redevelopment Concepts
Concept "A" Concept "B" Concept "C" Concept "DH
Housinq
Urban Rowhomes 30 30 30 30
Townhomes 11 8 10 14
Urban Townhome Flats 0 0 70 70
Senior Rental (market rate) 70 70 Q 34
Total units 111 108 110 148
Office/Retail (sq. ft) 40,000 54,000 40,000 40,000
1
These redevelopment concepts respond to the City's Comprehensive Plan goals of:
. Strengthening the image of the community as a desirable place to live and work.
. Preserving and enhance the existing viable commercial areas within the City.
. Advocating high quality development and redevelopment within the community.
. Providing a variety of life-cycle housing opportunities with the community.
. Providing a variety of employment opportunities within the community.
These concepts also respond to business and resident feedback from meetings, held at
the public library in May 2005, of:
. Creating a vibrant business area with a good mix of businesses.
. Creating a viable retail and small business through increased tax base and
employment opportunities.
. Maintaining the "old look" in the area by reinforcing the character and continuity
along the street front.
. Bringing residents to the business district.
. Attracting people from outside the community.
Preliminarv Development Aqreement
The preliminary agreement is an agreement between the EDA and Sherman and Associates
whereby the EDA grants the Sherman the exclusive right to prepare a redevelopment
proposal for the project area. Sherman pays all costs, including an initial $5,000 deposit,
incurred by the City in evaluating the proposal. The term of the agreement begins May 23,
2006 and expires November 1, 2006.
In preparing a redevelopment proposal, Sherman must attempt to respond to the goals of
the Comprehensive Plan for this area, and the feedback from the community meetings as
listed above, as well as the planning concepts described above and EDA feedback.
Mr. Loren Bruggeman, from Sherman and Associates, will provide an overview of the
company at the meeting as well as answer any questions EDA members may have.
RECOMMENDATION: Staff recommends the EDA enter into preliminary development
agreement with Sherman and Associates, Inc.
RECOMMEDED MOTION: Move to execute the preliminary development agreement
between the EDA and Sherman and Associates, Inc.
Attachments
EDA ACTION:
2
PRELIMINARY DEVELOPMENT AGREEMENT
(39th and Central Project)
THIS AGREEMENT, dated this 23rd day of May, 2006, by and between the Columbia
Heights Economic Development Authority, a body politic and corporate under the laws of
Minnesota (the "Authority") and Sherman and Associates, Inc. (the "Developer"):
WITNESSETH:
WHEREAS, the Authority desires to promote redevelopment of certain property within
the City of Columbia Heights, which property is legally described in Exhibit A attached hereto
(the "Property"); and
WHEREAS, the Authority owns one parcel of the Property described on Exhibit A as
3939 Central Avenue (the "Authority Parcel"), and has commenced efforts to negotiate purchase
agreements to acquire the balance of the Propelty; and
WHEREAS, the Developer has requested the Authority to explore the use of celtain
public assistance, financial and otherwise, to assist with such activities, hereafter referred to as
the "Redevelopment"; and
WHEREAS, the Authority has determined that it is in the Authority's best interest that
the Developer be designated sole developer of the Propelty during the term of this Agreement;
and
WHEREAS, the Authority and the Developer are willing and desirous to undertake the
Redevelopment if (i) a satisfactory agreement can be reached regarding the Authority's
commitment for public assistance necessary for the Redevelopment; (ii) satisfactory mortgage
and equity financing, or adequate cash resources for the Redevelopment can be secured by the
Developer; and (iii) the economic feasibility and soundness of the Redevelopment; and
(iv) satisfactory resolution of zoning, land use, site design, and engineering issues, and other
necessary preconditions have been determined to the satisfaction of the parties; and
WHEREAS, the Authority is willing to evaluate the Redevelopment and work toward all
necessary agreements with the Developer if the Developer agrees to reimburse the Authority for
its costs relating to the Redevelopment even if the Redevelopment is abandoned or necessary
agreements are not reached under the terms ofthis Agreement.
NOW, THEREFORE, in consideration ofthe foregoing and of the mutual covenants and
obligations set forth herein, the parties agree as follows:
I. Negotiations between the patties shall proceed in an attempt to formulate a
definitive development contract ("Contract") based on the following:
(a) the Developer's proposal (when submitted) together with any changes or
modifications required by the Authority;
(b) such documentation regarding economic feasibility of the Project as the
Authority may wish to undertake during the term of this Agreement; and
(c) other terms and conditions of this Agreement.
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 Redevelopment 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, the Developer shall:
(a) By November 1,2006, submit a proposal to the Authority, which proposal
must show the location, size, and nature of the proposed Redevelopment, including
sample floor layouts, renderings, elevations, and other graphic or written explanations of
the Redevelopment. The proposal shall be accompanied by a preliminary schedule for
the starting and completion of all phases of the Redevelopment.
(b) Submit an over-all cost estimate for the design and construction of the
Redevelopment.
(c) Submit a final time schedule for all phases of the Redevelopment.
(d) Undeliake and obtain such other preliminary economic feasibility studies,
income and expense projections, and such other economic information as the Developer
may desire to fUliher confirm the economic feasibility and soundness of the
Redevelopment.
(e) Submit to the Authority the Developer's financing plan showing that the
proposed Redevelopment is financially feasible.
(f) Furnish satisfactory, financial data to the Authority evidencing the
Developer's ability to undertake the Redevelopment.
(g) Assist and cooperate with the Authority, at Authority's request, in effOlis
to secure purchase agreements to acquire the balance ofthe Property.
4. During the term of this Agreement, the Authority agrees to:
(a) Commence the process necessary to undeliake such public assistance as is
necessary pursuant to the terms of the proposal.
2
(b) Proceed to seek all necessary information with regard to the anticipated
public costs associated with the Redevelopment.
(c) Estimate the Authority's level and method of financial pmticipation, if
any, in the Redevelopment and develop a financial plan for the Authority's participation.
(d) Continue efforts to secure purchase agreements to acquire the balance of
the Property.
5. It is expressly understood that execution and implementation of the Contract shall
be subject to:
(a) A determination by the Authority in its sole discretion that its
undertakings are feasible based on (i) the projected tax increment revenues and any other
revenues designated by the Authority; (ii) the purposes and objectives of any tax
increment, development, or other plan created or proposed for the purpose of providing
financial assistance for the Redevelopment; and (iii) the best interests of the Authority.
(b) A determination by the Developer that the redevelopment is feasible and
in the best interests of the Developer.
6. This Agreement is effective from the date hereof through November 1, 2006.
After such date, neither pmty shall have any obligation hereunder except as expressly set forth to
the contrary herein.
7. The Developer shall be solely responsible for all costs incurred by the Developer.
In addition, the Developer shall reimburse the Authority for the following costs:
(a) Upon execution of this Agreement, the Developer has deposited with the
Authority funds in the amount of $5,000, receipt of which the Authority hereby
acknowledges. The Authority may apply such deposit to pay any "Authority Costs,"
which means: reasonable and necessary out-of pocket-costs incurred by the Authority
from and after May 23,2006, in each case based on actual time spent in connection with
rendering assistance and advice to the Authority as evidenced by itemized bills and
invoices for (i) the Authority's financial advisor in connection with the Authority's
financial participation in redevelopment of the Property, (ii) the Authority's legal counsel
in cOilllection with negotiation and drafting of this Agreement and any related agreements
or documents, and any legal services related to the Authority's or City's pmticipation in
redevelopment of the Property; (iii) any appraiser retained by the Authority in connection
with conveyance of any portion of the Property by the Authority to the Developer or in
connection with determination of the level of public assistance; and (iv) consultants
retained by the Authority for planning, enviromnental review, and traffic engineering for
development of the Property. At Developer's request, but no more often than monthly,
the Authority will provide Developer with a written report on cunent and anticipated
expenditures for Authority Costs, including invoices or other comparable evidence.
3
(b) If at any time during the term of this Agreement the Authority
determines that the amounts deposited by Developer are insufficient to pay Authority
Costs, the Authority may notify the Developer in writing as to any additional amount
required to be deposited. The Developer must deposit such additional funds within 20
days after receipt of the Authority's notice.
(c) Upon termination of this Agreement in accordance with its terms,
the Authority will return to the Developer the balance of any funds deposited under this
section that are on hand as of the date of receipt of the notice of termination, and less any
Authority Costs incurred through the date of receipt of the notice of termination. For the
purposes of this paragraph, Authority Costs are considered to be incurred if they have
been paid, relate to services performed, or are payable under a contract entered into, on or
before the date of receipt of the notice oftermination.
This Section 7 shall survive termination of this Agreement and shall be binding on the
Developer regardless of the enforceability of any other provision of this Agreement.
8. This Agreement may be terminated upon 5 days written notice by the Authority to
the Developer if:
(a) an essential precondition to the execution of a contract cannot be met; or
(b) if, in the sole discretion of the Authority, an impasse has been reached in
the negotiation or implementation of any material term or condition of this Agreement or
the Contract; or
(c) The Authority determines that its Administrative Costs will exceed the
amount initially deposited for such purpose under Section 7(b), and the Developer does
not deliver additional security to the Authority pursuant to Section 7(b) of this
Agreement.
If the Authority terminates the Agreement under this Section 8, the Developer shall
remain liable to the Authority under Section 7(b) of this Agreement for Administrative Costs
incurred by the Authority through the effective date of termination.
9. The Developer is designated as sole developer of the Property during the term of
this Agreement. The Authority owns the Authority Parcel, but otherwise makes no
representations or warranties as to control, access or ownership of the Propeliy. The Authority
agrees that during the term of this Agreement the Authority will not enter into agreements with
any other paliy to convey the Authority Parcel or to facilitate redevelopment of any pOliion of
the Property.
10. In the event that the Developer, its heirs, successors or assigns, fail to comply
with any of the provisions of this Agreement, the Authority may proceed to enforce this
Agreement by appropriate legal or equitable proceedings, or other similar proceedings, and the
4
Developer, its heirs, successors or assigns, agree to pay all costs of such enforcement, including
reasonable attorneys' fees.
II.
jurisdiction,
Agreement.
If any portion of this Agreement is held invalid by a court of competent
such decision shall not affect the validity of any remaining pOllion of the
12. In the event any covenant contained in this Agreement should be breached by one
party and subsequently waived by another patty, such waiver shall be limited to the particular
breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent
breach. This Agreement may not be amended nor any of its terms modified except by a writing
authorized and executed by all parties hereto.
13.
sufficiently
personally:
Notice or demand or other communication between or among the parties shall be
given if sent by mail, postage prepaid, return receipt requested or delivered
(a) As to the Authority:
Columbia Heights Economic Development Authority
590 40th Avenue NE
Columbia Heights, MN 55421
Attn:
(b) As to the Developer:
Sherman Associates, Inc.
233 Park Avenue South
Suite 201
Minneapolis, MN 55415
14. This Agreement may be executed simultaneously in any number of counterparts,
all of which shall constitute one and the same instrument.
15. This Agreement shall be governed by and construed in accordance with the laws
of the state of Minnesota. Any disputes, controversies, or claims arising out of this Agreement
shall be heard in the state or federal comls of Minnesota, and all parties to this Agreement waive
any objection to the jurisdiction of these courts, whether based on convenience or otherwise.
16. The Developer hereby agrees to protect, defend and hold the Authority and its
officers, elected and appointed officials, employees, administrators, commissioners, agents, and
representatives harmless from and indemnified against any and all loss, cost, fines, charges,
damage and expenses, including, without limitation, reasonable attorneys fees, consultant and
expert witness fees, and travel associated therewith, due to claims or demands of any kind
whatsoever arising out of (i) the development, marketing, sale or leasing of all or any patl of the
Propelly, including, without limitation, any claims for any lien imposed by law for services,
labor or materials furnished to or for the benefit of the Property, or (ii) any claim by the state of
Minnesota or the Minnesota Pollution Control Agency or any other person pellaining to the
5
violation of any permits, orders, decrees or demands made by said persons or with regard to the
presence of any pollutant, contaminant or hazardous waste on the Property; and (iii) or by reason
of the execution of this Agreement or the performance of this Agreement. The Developer, and
the Developer's successors or assigns, agree to protect, defend and save the Authority, and its
officers, agents, and employees, harmless from all such claims, demands, damages, and causes of
action and the costs, disbursements, and expenses of defending the same, including but not
limited to, attorneys fees, consulting engineering services, and other technical, administrative or
professional assistance. This indemnity shall be continuing and shall survive the performance,
termination or cancellation of this Agreement. Nothing in this Agreement shall be construed as a
limitation of or waiver by the Authority of any immunities, defenses, or other limitations on
liability to which the Authority is entitled by law, including but not limited to the maximum
monetary limits on liability established by Minnesota Statutes, Chapter 466.
17. The Developer, for itself, its attorneys, agents, employees, former employees,
insurers, heirs, administrators, representatives, successors, and assigns, hereby releases and
forever discharges the Authority, and its attorneys, agents, representatives, employees, former
employees, insurers, heirs, executors and assigns of and from any and all past, present or future
claims, demands, obligations, actions or causes of action, at law or in equity, whether arising by
statute, common law or otherwise, and for all claims for damages, of whatever kind or nature,
and for all claims for attorneys' fees, and costs and expenses, including but not limited to all
claims of any kind arising out of the negotiation, execution, or performance of this Agreement
between the patiies.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
6
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed
in its name and behalf and its seal to be duly affixed hereto and the Developer has caused this
Agreement to be duly executed as of the day and year first above written.
[DEVELOPER]
By
Its
By
Its
S-I
COLUMBIA HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY
By
Its President- Don Murzyn Jr.
By
Its Executive Director- Walter R. Fehst
8-2
EXHIBIT A
3939 Central Avenue
PIN # 36-30-24-32-0252
The South 180 feet of the North 330 feet of Block 4, Walton's Rearrangement of Lots 33 and 34,
Block 6, Reservoir Hills, except the East 165 feet thereof, according to the recorded plat thereof,
and situate in Anoka County, Minnesota
3919 Central Avenue
PIN # 36-30-24-33-0148
Block 4, Walton's Reanangement of Lots 33 and 34, Block 6, Reservoir Hills, excepting there from
however, the two following described tracts:
Tract 1:
The north 330 feet thereof.
Tract 2:
Commencing at the Southwest corner of Block 4, Walton's RealTallgement of Lots 33 and 34,
Block 6, Reservoir Hills; thence Northerly along the West line of said Block 4, 100 feet; thence
Easterly parallel with the South line of said Block 4, 183 feet; thence Southerly parallel with the
West line of said Block 4, 100 feet to a point within said South boundary line; thence Westerly
along the South line of said Block 4, 183 feet to the point of beginning, according to the plat
thereof on file or of record in the office of the County Recorder, Anoka County, Minnesota.
3901 Central Avenue
PIN # 36-30-24-33-0149
That palt of Block numbered 4, of Walton's Real'l"angement of Lots 33 and 34, Block 6, Reservoir
Hills, described as follows:
Commencing at the southwest corner of Block 4, Walton's Rearrangement of Lots 33 and 34,
Block 6, Reservoir Hills; thence northerly along the west line of said Block 4, 200 feet; thence
easterly parallel with the south line of said Block 4, 183 feet; thence southerly parallel with the
west line of said Block 4, 100 feet to a point within said south boundary line; thence westerly
along the south line of said Block 4, 183 feet to the point of beginning, Anoka County,
Minnesota.
Together with all hereditaments and appurtenances belonging thereto, subject to the following
exceptions:
Subject to reservations, restrictions and easements of record, if any; and subject to liens and
encumbrances placed upon the premises by the Grantee herein arising on or after July 31, 1981.
A-I
/ I
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Resume
Sherman Associates, Inc. is an award-winning firm specializing in design, construction and financing of
quality housing and commercial properties in Minnesota and the adjoining four state areas.
Sherman Associates has developed over 6,000 multi-family and single-family homes and over 600,000
square feet of commercial property valued in excess of $1.2 Billion. These developments include a
diversified range of luxurious single-family homes, million-dollar plus townhouses, and a variety of low
and moderate-income dwellings including quality tax credit housing units.
Sherman Associates experience also includes construction of Ilew retail, office, medical and office
warehouse buildings. With over 25 years of development and construction experience, we are able to
offer a diverse range of services in the single-family, multi-family and commercial markets. They
encompass:
. Development Services
. Design Build Services
. Financial Analysis/Feasibility
. Construction
. Site Analysis
. Equity and Debt Funding
. Marketing Programs/Feasibility
. Federal, State and Local Housing Programs
. Architectural Design
. Property Management Services
233 Park Avenue South, Suite 201, Minneapolis. MN 55415
Tel: 612-332-3000 Fax: 612-332-8119' www.sherman-associates.com @i
fi! ~t\~~nVHl
Development Staff
George Sherman President and Principal Developer
Susan Fauver General Counsel
Paula Beck Associate Counsel
Loren Brueggemann Vice President of Development
Richard Kiemen Construction Project Manager
Rob Kost Commercial Project/Commercial Leasing Manager
David Buck Project Manager - Mixed Use Development
Brian Gorecki Project Manager
Jackie Nickolaus Project Manager
Ryan Sailer Project Manager
Chris Winter Project Manager
Bernadette Hornig Associate Project Manager
Marilyn Soltis Paralegal
Karen Hassan Construction Assistant Project Manager
Teddy Bekele Construction Accounts Payable
Wanda Jensen Office Administrator
Suzan Myslicki Reception/ Administrative Assistant
Larry Kelly Controller
Larry Mitchell Director - Property Management
Debra Godtland Assistant Director - Property Management
Staci Ford Realtor and Commercial Property Manager
233 Park Avenue South, Suite 20 I, Minneapolis, MN 55415
Tel: 612-332-3000 Fax: 612 332-8119 . W\I\MI.sherman-associates.com @
f4 ~lN~~n\(Hl
Bios
George Sherman/President and Principal Developer
George Sherman has been involved in multi-family and single-family housing for 25 years. He has been the
principal involved in the development of over 5,000 multi-family rental units and he has developed over
1,000 for sale housing units for a total development value in excess of $1 billion dollars. Presently, Mr.
Sherman is the President and Principal Developer of Sherman Associates, Inc. Mr. Sherman is a graduate
of the University of Minnesota where he earned a BS in Biochemistry in 1976 and attained MBA studies in
1977.
Susan Fauver/General Counsel
As General Counsel for Shennan Associates, Inc., Susan Fauver focuses on real estate development with
an emphasis on affordable housing finance, including low -income housing tax credit transactions. Ms.
Fauver is currently a Minnesota State Chair of the American Bar Association's Forum on Affordable Housing
and Community Development Law. Ms. Fauver's experience includes practicing in the United States
Senate Office of the Legislative Counsel, where she worked closely with the Senate Finance Committee.
Most recently she was a partner at Faegre & Benson LLP in Minneapolis. She received her law degree
from Northwestern University School of Law in 1988.
Paula Beck! Associate General Counsel
Paula Beck joined the legal team at Shennan Associates in August 2004, where she focuses on residential
real estate development and affordable housing issues. Her previous experience includes five years as an
Assistant Attorney General representing the Minnesota Housing Finance Agency in all aspects of affordable
housing finance. Ms. Beck has also studied and written about housing law and policy, including an article in
the Harvard Civil Rights-Civil Liberties Law Review entitled "Fighting Section 8 Discrimination: The Fair
Housing Act's New Frontier". She received a BA from Swarthmore College in t 990 and her law degree from
Harvard Law School in 1995.
Loren BrueggemannNice President of Development
Loren Brueggemann has 30 years of deveiopment and construction management experience. He has
worked in multiple states developing multi-family and single family housing. In addition, his background
includes the development of commercial (office, retail and industrial), hospitals and military housing and
government work. The total development value of such work is in excess of $400 million dollars. Mr.
Brueggemann holds a Bachelor of Science Degree in Architectural Engineering and Building Construction
Technology from the Milwaukee School of Engineering and a Masters Degree in Business Administration
from the University Of Minnesota Carlson School Of Management.
Richard Klemen/Construction Project Manager
Rich Kiemen joined Sherman Associates in March 2005. He has over 25 years of experience in general
contracting/project management. Mr. Kiemen has been involved with multi-family projects, residential,
public and private construction projects throughout the Midwest area. He received a Bachelors degree in
Architectural Engineering from Milwaukee School of Engineering. He holds a residential contractor's license
in the state of Minnesota.
233 Park Avenue South, Suite 201, Minneapolis, MN 55415
Tel: 612-332-3000 Fax: 612-332-8119. www.sherman-associates.com @
--------
fi!. ~~s~~IT\ql(
Rob Kost/Commercial Leasing Manager/Commercial Project Manager
Throughout his 20 year career in commercial real estate, Rob Kost has leased and/or sold more than 2.5
million square feet of office, medical & retail space and has been involved in a variety of consulting, property
management & corporate real estate services assignments. Rob was most recently with United Properties.
He has served on numerous committees and boards-both business and civic related. Rob is currently a
board member of the Grand Avenue Business Association & the St. Joseph's School of Music. Rob earned
a BA in Business Administration from St. John's University and attended the University of Salzhurg, Austria.
In 1993, he and three business partners started the Austrian master franchise corporation in Vienna for
Subway Sandwiches. Rob is a licensed broker in Minnesota/Wisconsin and is a Certified Commercial
Investment Member (CCIM).
David Buck/Project Manager - Mixed Use Development and Broker
David Buck's background includes all aspects of development. A licensed broker, Mr. Buck was most
recently a Vice President/Project Manager for @ Home Apartments before joining Sherman Associates, Inc.
He also leased many regional shopping malls for Homart Development for several years. Mr. Buck eamed
a Bachelor of Arts Degree from St. Olaf College and a MBA from the University Of Chicago Graduate
School Of Business.
Brian Gorecki/Project Manager
Brian Gorecki joined Shennan Associates in August of 2004. He brings 12 years of residential development
experience in the area of affordable housing. He previously worked as a community organizer and housing
specialist for a Minneapolis community development corporation. Prior to joining Sherman Associates, he
was the Director of Real Estate Development for Artspace Projects, national non-profit developer of
live/work space for artists. Mr. Gorecki studied at the University of Minnesota with a concentration in history
and political science.
Jackie Nickolaus/Project Manager
Jackie Nickolaus joined Shennan Associates in July of 2005. She brings 10 years of experience in the area
of downtown redevelopment, including long-term planning and project implementation. Prior to joining
Sherman Associates, she was an economic development coordinator for the City of Des Moines. Ms.
Nickolaus eamed a Bachelor of Arts Degree from the University of Iowa and a Master of Arts from
Humphrey Institute of Public Affairs, University of Minnesota.
Ryan Sailer/Project Manager
Ryan Sailer joined Shennan Associates in January of 2006. Prior to joining Sherman Associates, he served
as the Real Estate Manager for a large national General Contractor/Developer based in the Twin Cities. He
brings with him experience in project finance, site acquisition, site development, and project management.
Ryan has a Bachelors of Science degree from the University of Minnesota's Carlson School of
Management.
Chris Winter/Project Manager/Broker
Chris Winter has over 12 years experience in real estate development and management. Originally from
the Chicago area, his experience has been with mixed-use development and redevelopment opportunities;
managing from initial vision through final completion. Chris was the Vice President of Development for an
area real estate company prior to joining Sherman Associates. Chris has a Bachelor of Science degree with
concentrations in Urban Development from Illinois State University.
233 Park Avenue South, Suite 20 I, Minneapolis, MN 55415
Tel: 612-332-3000 Fax: 612332-8119 . www.sherman-associates.com i5l
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Bernadette Hornig/Associate Project Manager
Bernadette Hornig joined Shennan Associates in January 2006, She has 5 years experience in housing
finance, development and planning, Prior to joining Sherman Associates, Bernadette worked as a Senior
Project Coordinator specializing in multifamily housing projects for the City of Minneapolis' Department of
Community Planning and Economic Development (CPED), Bernadette received a Bachelor of Arts from
Wellesley College and a Masters in City Planning from the Massachusetts Institute of Technology (MIT),
with a focus on housing development and finance, She was accepted as a member of the American
Institute of Certified Planners (AICP) in 2005,
Marilyn Soltis/Paralegal/Notary
Marilyn Soltis joined Sherman Associates in April of 2005, She graduated from the Minnesota Paralegal
Institute in November 2001, Since then, Marilyn has been working in the areas of residential real estate,
She brings with her three years of experience and knowledge in real estate,
Karen Hassan/Construction Assistant Project Manager
Karen Hassan has been selling new for-sale homes for Sherman Associates, Inc, since February of 2004,
She has over 20 years of experience in commercial, industrial and residential development. Prior to joining'
Sherman Associates, Inc, she has worked as a consultant concentrating in development, real estate and
business systems analysis, Prior to consulting, Ms, Hassan worked as a Real Estate Coordinator for the
Minneapolis Community Development for 18 years, Ms, Hassan has a Bachelors of Arts Degree in
Philosophy from Metropolitan State University,
Teddy Bekele/Construction Accounts Payable
Teddy Bekele has been with Sherman Associates, Inc, since November, 2003, Mr. Bekele has
over 10 years of accounting and financial analysis experience, Mr, Bekele manages all of the
accounting functions for Craftsman Construction, Mr. Bekele earned his Associates Degree in
Accounting in 1986 from the College of Commerce in Addis Ababa, Ethiopia,
Wanda Jensen/Executive Assistant / Office Administrator / HR Coordinator
Wanda Jensen has been with Sherman Associates, Inc" since 1989, She is Mr, Sherman's Executive
Assistant and is also the Coordinator of Human Resources and Office Management. Ms, Jensen earned an
Associate Degree from Wisconsinlndianhead Technical Institute - Rice Lake, Wisconsin, in 1984, and is a
notary public,
Suzan Myslicki/Receptionist/Administrative Assistant/Notary
Suzan Myslicki joined Sherman Associates in May 2004, She brings with her over 20 years of Reception
experience, Suzan works closely with our Legal staff and Project Managers to organize documents and
keep things in order, Suzan also works closely with our office Administrator,
Larry Kelly/Controller
Larry Kelly has over 20 years experience in real estate development and property management. Prior to
joining Sherman Associates, Inc" he was the Controller for John, B, Goodman Limited Partnership a
developer of senior housing projects, Mr. Kelly earned a double major in Accounting and Economics from
the University of Toronto, and is a member of the Canadian Institute of Certified General Accountants,
233 Park Avenue South, Suite 20 I, Minneapolis, MN SS41 5
Tel: 612-332-3000 Fax: 612-332-8119 . www,sherman-associates,com ~
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Larry Mitchell/Director, Property Management
Larry Mitchell has 26 years in all aspects of property management experience both commercial and
residential. He has received numerous awards, including recognition from the U.S. Department of Housing
and Urban Development, and has been recognized as a leader of quality affordable housing in the Twin
Cities metro area. Mr. Mitchell holds a Minnesota Real Estate Agent Saies License and a Minnesota State
Teaching License. He is a fonner Sl. Louis Park city council member and a graduate of the University of
Florida.
Debra Godtland/Assistant Director, Properiy Management
Debra Godtland has over 21 years of property management experience. Some of her former positions
include Senior Property Manager for ten Section 8 apartment communities and Regional Operations
Manager for fifteen Section 32 apartment communities. Additionally, Ms. Godtland has held the designation
of Registered Apartment Manager Dean through the National Association of Home Builders.
Staci Ford/Realtor, Commercial Properly Manager
Staci Ford, a property management professional, worked as the Senior Lease Administrator for Video
Update prior to joining Sherman Associates, Inc. Ms. Ford was also a Residential Real Estate Agent for
three years and worked in commercial insurance, specializing in marketing non-profit directors and officer's
liability, fiduciary liability, workers compensation, retrospective workers compensation plans and excess
liability.
233 Park Avenue South, Suite 20 I, Minneapolis, MN 55415
Tel: 612-332-3000 Fax: 612-332-8119 . www.sherman-associates.com G:r
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ft1. ~~s~~nvHl
For Sale Projects
311 SUPERIOR
311 East Superior Street
Duluth, Minnesota
33 For Sale Condos
Project Value: $16 Million
Role: Developer
Commencing: December 2005
HOMES OF EMERSON HILL
993 Robert Street
West St. Paul, Minnesota
35 For Sale Condominiums
Project Value: $7.5 Million
Role: Developer
Commencing January 2006
THE BRIDGES OF BLAINE
109th Avenue 8: Radisson Road
Blaine, Minnesota
68 For Sale Townhomes
Project Value: $18 Million
Financing: US Banl<
Role: Developer
Commencement Date: October 2004
GROVELAND TERRACE CONDOMINUMS
48, 50, 52 Groveland Avenue
Minneapolis, Minnesota
132 For Sale Condominiums
Project Value: $38 Million
Financing: TCF Bank
Role: Developer
Commencement Date: October 2004
THE CHICAGO
29th Street and Chicago Avenue
Minneapolis, Minnesota
89 For Sale Condominiums
Project Value: $30 Million
Financing: US Bank
Role: Developer
Completed: 2006
PRINTER'S ROW
9th Street and Temperance
St. Paul, Minnesota
84 For Sale Condominiums
Project Value: $30 Million
Financing: US Bank
Role: Developer
Commencement Date: June 2004
MIDTOWN LOFTS
29'" Street and Bryant Avenue
Minneapolis, Minnesota
72 For Sale Condominiums
Project Value: $24 Million
Financing: TCF Bank
Role: Developer
Completed: 2005
THE VILLAS OF LITTLE CANADA
Rice Street and County Road C
Little Canada, Minnesota
45 For Sale Townhomes
Project Value: $14 Million
Financing: TCF Bank
Role: Developer and General Contractor
Commencement date: September 2003
KEENE CREEK TOWNHOMES
Hermantown, Minnesota
New Construction - multi-phased
44 For Sale Townhomes
Project Value: $9 Million
Financing: US Bank, Fannie Mae
Role: Developer and General Contractor
Completed: 2005
WATER STREET BROWNSTONES
Water Street
Des Moines, Iowa
37 For Sale Condominiums
Sale Prices: $150,000 to $325,000
Project Value: $9.6 Million
Financing: US Bank, City of Des Moines, Fannie Mae
Role: Developer
Completed: September 2004
233 Park Avenue South, Suite 20 I, Minneapolis, MN 55415
Tel: 612-332-3000 Fax: 612-332-8119' www.sherman-associates.com (0)
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or a e rOJec s con.
BOTTINEAU COMMONS TOWNHOMES
18'" 8: University Avenue NE
Minneapolis, Minnesota
13 For Sale Townhomes
Project Value: $3.6 Million
Financing: Internal
Role: Developer and General Contractor
Completed: December 2003
CAPITAL HEIGHTS CITY HOMES
Capital Heights Lot V
St. Paul, Minnesota
25 For Sale Townhomes
3 Habitat for Humanity Townhomes
22 Marl<et Rate units at $180,000 each
Project Value: $5.5 Million
Financing: City of St. Paul HRA, US BanI<
Role: Developer and General Contractor
Completed: November 2003
9th STREET LOFTS
800 Sibley Street
St. Paul, Minnesota
Rehab of old warehouse
49 For Sale Condominiums
Project Value: $15 Million
Financing: US BanI<
Role: Developer
Completed: January 2005
THE ESSEX
800 Sibley Street
St. Paul, Minnesota
38 For Sale Condominiums
New Construction - Urban Village - Mixed Use
Sale Prices: $120,000 to $340,000
Project Value: $9.7 Million
Financing: US BanI<, City of St. Paul Tax Increment,
MHFA, Met Council
Role: Developer
Completed: March, 2002
THE DAKOTA CONDOMINIUMS
209 Eighth Street
St. Paul, Minnesota
32 For Sale Condominiums
Sale Prices: $150,000 to $325,000
Project Value: $9.5 Million
Financing: US BanI<, City of St. Paul, Tax Increment
Role: Developer
Completed: December 2003
LANDINGS AT SAWMILL RUN
400 West River Road, Minneapolis, Minnesota
58 Executive Townhomes
New Construction
Sale Prices $400,000 to 3,000,000
On riverfront utilizing abandoned railroad yard
Project Value: $36 Million
Financing: National City Banl</Richfield BanI< 8: Trust
Company
Role: Developer and General Contractor
Commencement Date: 1995
Completion Date: September 2003
THE SHORES
Lexington 8: County Road D
Shoreview, Minnesota
15 For Sale Townhomes
Sales Prices: $180,000 - $200,000
Project Value: $3.2 Million
Financing: Internal
Role: Developer and General Contractor
Completed: June 2003
CITY HOMES ON PARK AVENUE
2400 ParI< Avenue South
Minneapolis, Minnesota
29 For Sale Townhomes and Condominiums
New Construction 8: Rehabilitation of large mansions
Sale Prices $112,500 to $180,000
Project Value: $6 Million
Financing: MCDA, MHFA, Richfield Banll 8: Trust
Role: Developer and General Contractor
Completed: 1999 - 2000
233 Park Avenue South, Suite 20 I. Minneapolis, MN S5415
Tel: 612-332-3000 Fax: 612-332-8119 . www.sherman-associates.com @
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For Sale Projects (cont.)
3100 FOURTH AVENUE
3100 Fourth Avenue South
Minneapolis, Minnesota
9 Single Family Homes
New Construction
Built in cooperation with the Central Neighborhood
Improvement Association
Project Value: $1.5 Million
Financing: MHFA
Role: Developer and General Contractor
Completed: 1992
PARKWAY TERRACE
Maplewood and North St. Paul, Minnesota
Single Family Home Development
90 Single Family Homes
Sales Prices: $100,000 to $200,000
Project Value: $14 Million
Financing: Norwest Bank - Retired
Role: Developer and General Contractor
Completed: 1990
KENWOOD ISLES CONDOMINIUM AND CITIHOMES
28TH a Hennepin Avenue South
Minneapolis, Minnesota
New Construction
Built on the old West High School Site
140 Unit Senior Condominium Hi-rise
40 Executive Townhomes
Project Value: $20 Million
Financing: First National Bank
Completed: 1988
BOARDWALK a PARK PLACE TOWNHOMES
Plymouth a Lyndale Avenue
Minneapolis, Minnesota
63 For Sale Townhome Units
New Construction
Project Value: $4.2 Million
Financing: First National Bank - retired
Role: Developer and General Contractor
Completed: 1982
3100 CLINTON
3100 Clinton Avenue South
Minneapolis, Minnesota
8 Single Family Homes - New Construction
Built in cooperation with the Central Neighborhood
Improvement Association
Project Value: $1.5 Million
Financing: MHFA a Tax Credit
Role: Developer, General Contractor
Completed: 1990
HIGHLAND TERRACE
2500 - 2600 Emerson a Fremont Avenue North
Minneapolis, Minnesota
22 Single Family Homes
New Construction
Built in cooperation with the Fairview Neighborhood
Development Corporation
Project Value: $2.5 Million
Financing: Internal
Role: Developer and General Contractor
Completed: 1990
LAKES CITIHOMES
3600 West Lake Street
Minneapolis, Minnesota
83 For Sale Townhome Unit
New Construction
Utilizing Abandoned Railroad Yard
Project Value: $8 Million
Financing: First National Bank - Retired
Role: Developer and General Contractor
Completed: 1985
233 Park Avenue South, Suite 20 I, Minneapolis, MN 55415
Tel: 612-332-3000 Fax: 612-332-8119 . www,sherman-associates.com '(@)
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Rental Projects
THE GREYSOLON
231 East Superior Street
Duluth, Minnesota
150 Rental Units
Financing: Low Income Housing and Historic Tax
Credits, MHFA
Role: Developer
Commencing: February 2006
MIDTOWN EXCHANGE
29'H Street and Chicago Avenue
Minneapolis, Minnesota
219 Rental Units
Project Value: $48 Million
Financing: 4% Tax Credits, Historic Credits
US Bank bond mortgage, MHFA, City of Minneapolis,
Hennepin County Grants, Tax Increment
Role: Developer
Completed: December 2005
BLAINE TOWN SQUARE SENIOR APARTMENTS
10911> and Radisson Road
Blaine, Minnesota
87 Senior Rentals
Project Value: $10 Million
Financing: HUD insured first mortgage, Tax
increment financing, H.O.M.E. Funds
Role: Developer
Completed: October 2005
FALCON HEIGHTS SENIOR APARTMENTS
Snelling Ave. and Larpenteur Ave.
Falcon Heights, Minnesota
55 Senior Rental Units
Project Value: $6 Million
Financing: HUD, Ramsey County, Tax Increment
Role: Developer, Manager
Completed September 2004
PHALEN SENIOR LOFTS
635 Phalen Boulevard
St. Paul, Minnesota
73 Senior Rentals
Project Value: $10 Million
Financing Bonds, 4% Tax Credit, TIF
Role: Developer
Completed: February 2006
LYONS COURT
850 Sibley Street
St. Paul, Minnesota
60 Senior Rental Units
Project Value: $7.8 Million
Financing: 4% Tax Credits, HUD insured, tax exempt
Bonds, tax increment, H.O.M.E. Funds
Role: Developer
Completed: March 2005
VINE STREET LOFTS
Vine Street
Des Moines, Iowa
110 Rental Units
Project Value: $14.7 Million
Financing: HUD, Fannie Mae, City of Des Moines, Polk County
Housing Trust Fund, Neighborhood Finance Corp., Tax
Credit, Tax Abatement
Role: Developer
Completed: September 2004
EAST PHILLIPS COMMONS
Bloomington Ave.
Minneapolis, Minnesota
30 Rental Units
4 live-in Units
Project Value: $6 Million
Financing: HUD, MHFA, Washington County Bank, Tax
Credits, Tax Increment, City of Minneapolis, Hennepin
County,
Role: Developer, Manager
Completed: May 2004
233 Park Avenue South, Suite 20 I, Minneapolis, MN 55415
Tel: 612-332-3000 Fax: 612-332-8119' www.sherman-associates.com l5:r
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Rental Projects (cont.)
MERRITT SCHOOL
Duluth, Minnesota
Conversion of school
20 Rental Units
Project Value: $1.2 Million
Financing: Bonds, MEtI Bank
Role: Developer
Completed: May 2004
BOTTINEAU COMMONS APARTMENTS
18th 8: University Avenue NE
Minneapolis, Minnesota
119 Unit Apartment Building
Project Value: $18 Million
Financing: HUD, MHFA, Tax Increment, Tax Credits
Role: Developer, Manager
Completed: March 2003
THE STRAUS APARTMENTS
300 Sibley Street
St. Paul, Minnesota
48 Historic Rehab
Project Value: $ 11 Million
Financing: Historic credits, tax credits, tax exempt
bonds, MHFA, HUD, tax increment
Role: Developer, Manager
Completion: December 2003
THE SHORES
Lexington Avenue Et County Road D
Shoreview, Minnesota
68 Senior Rental Units
Project Value: $10 Million
Financing: HUD, Ramsey County, Tax Increment, Tax
Credit, City of Shoreview
Role: Developer, Manager
Completed: October 2002
THE LODGE AT LITTLE CANADA
Rice Street and Little Canada Road
Little Canada, Minnesota
Phase 1
78 Senior Rental Units
14,000 sq ft Retail
Project Value: $1.5 Million
Financing: HUD, City of Little Canada, Ramsey County, Tax
Increment
Role: Developer, Manager
Completed: November 2003
GRANDE MARKET PLACE
Burnsville Parkway 8: Nicollet Avenue
Burnsville, Minnesota
113 Rental Units
15,000 Retail Space
Project Value: $20 Million
Financing: HUD, MHFA, City of Burnsville, Family Housing Fund,
Dakota County, Tax Increment, Tax Credits
Role: Developer, Manager
Completed: December 2003
BOTTINEAU LOFTS
University Avenue NE
Minneapolis, Minnesota
30 Historical Rehab
4 New Rental Townhomes
Project Value: $6 Million
Financing' Historic Credits, Tax Credits, MHFA, HUD, tax
increment
Role: Developer, General Partner
Completed: March 2003
GUARDIAN ANGELS OF HASTINGS
Hastings, MN
20 Rental Apartments
10 Rental Townhomes
5,000 sq. ft. of day care
Dakota County Women's Shelter
Community Center
Project Value: $4.5 Million
Financing: MHFA, Metropolitan Council, City of Hastings HRA,
Tax Increment, Tax Credits
Role: Developer, Manager
Completed: July 2002
233 Park Avenue South, Suite 20 I, Minneapolis, MN 55415
Tel: 612.332.3000 Fax: 612.332-8119 . www.sherman-associates.com ~
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Rental Projects (cont.)
SIBLEY COURT APARTMENTS - PHASE II
Sibley Par\< - St. Paul, Minnesota
122 Rental Units
Project Value: $15 Million
Financing: HUD, MHFA, City of St. Paul HRA, Tax
Increment, Tax Credit
Role: Developer, Manager
Completed: March 2003
WEST GATE TOWNHOMES
6619 Westgate Boulevard, Duluth, Minnesota
28 Tax credit Rental Townhomes
New Construction
Project Value: $3 Million
Financing: Tax Credit, Richfield Bank
Role: Developer, General Partner
Completed: 2001
SIBLEY PARK APARTMENTS
Seventh Street and Waco uta Street
St. Paul, Minnesota
114 Units 8: 10,000 sq ft - Retail
New construction, Urban Village Mixed-Use
Project Value: $17 Million
Financing: HUD, MHFA, Tax Credit, Tax Increment
Role: Developer, General Partner
Completed: 2001
COMMUNITY PLAZA
700 Central Avenue
St. Paul, Minnesota
40 Units
Acquisition - Rehabilitation
Project Value: $3 Million
Financing: HUD, MHFA, Tax Credits
Role: Developer, General Partner, Contractor
Acqui red: 1999
STRADFORD FLATS
16-22 East Fifteenth Street
Minneapolis, Minnesota
62 Units - Efficiency and One Bedrooms
Acquisition - Rehabilitation
Project Value: $1.6 Million Moderate Rehab
Financing: MHFA, Tax Credits
Role: Developer, General Partner, General
Contractor, Management
Completed: 1994
Le SUEUR MEADOWS APARTMENTS
Turrel Street, Le Sueur, Minnesota
40 Rental Apartments
Five - 8 unit buildings
Project Value: $2.7 Million
Financing: MHFA, Tax Credit, Tax Increment
Role: Developer, General Partner
Completed: September, 2002
FARMINGTON TOWNHOMES
900 Larch Street, Farmington, Minnesota
New Construction
16 Units
Tax Credit Townhomes
Project Value: $2 Million
Financing: Tax Credits, US Bank
Role: Developer, General Partner
Completed: 2001
HIGHLAND CHATEAU
Duluth, Minnesota
60 Units
Acquisition - Rehabilitation
Project Value: $2.5 Million
Financing: Glaser Financial
Role: Owner, Contractor
Completed: 1999
SUNRISE TOWN HOMES
2815 to 2871 - 59th Avenue NW
Rochester, Minnesota
24 Tax Credit Rental Town homes
New Construction
Project Value: $2.5 Million
Financing: MHFA, Tax Credits
Role: Developer, General Partner
Completed: 1998
CROMWELL COMMONS
10 East Fifteenth Street
Minneapolis, Minnesota
18 Units - Efficiency and One Bedrooms
Acquisition - Rehabilitation
Project Value: $1 Million Substantial Rehab
Financing: MHFA, Tax Credits
Role: Developer, General Partner, General Contractor, Manager
Completed: 1996
233 Park Avenue South, Suite 201, Minneapolis, MN 55415
Tel: 612-332-3000 Fax: 612-332-8119 . www.sherman-associates.com 1:E:l
T____
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Rental Projects (cont.)
2200 BLAISDELL AVENUE APARTMENTS
2200 - 2300 Blaisdell Avenue South
Minneapolis, Minnesota
150 Unit Apartment Buildings
Acquisition
Project Value: $2.8 Million
Financing: National City BanI<
Role: Manager
Acquired: 1995
RIVER RUN APARTMENTS
1434 Marshall Street NE
Minneapolis, MN
74 Rental Units
Project Value $12 Million
Financing: 4% Tax Credits, Bonds, TIF
Role: Developer
Commencement: December 2004
Completed: December 2005
3100 FOURTH AVENUE
3100 Fourth Avenue South
Minneapolis, Minnesota
10 Rehab Rental Units - Section 8
Built in cooperation with the Central Neighborhood
Improvement Association
Project Value: $1.5 Million
Financing: MHFA
Role: Developer, General Partner, Contractor,
Manager
Completed: 1992
RIVERSIDE PLAZA
1525 South Fourth Street
Minneapolis, Minnesota
Rehab of Minnesota's largest apartment complex
Acquisition' Rehabilitation
1,303 Rental Units
Project Value: $50 Million
Financing: FHA First Mortgage, Housing Revenue
Bonds, Housing Tax Credits - Section 8
Role: Developer, General Partner, Management
Completed: 1989
BUFFALO RIDGE TOWNHOMES
Anderson Avenue
Buffalo, Minnesota
20 Tax Credit Rental Townhome Units
New Construction
Project Value: $1.5 Million
Financing: MHF A, Tax Credits
Role: Developer, General Partner, Contractor
Completed: 1995
3100 CLINTON AVENUE
Minneapolis, Minnesota
12 Rehab Rental Units
Built in cooperation with the Central Neighborhood
Improvement Association
Project Value: $1.5 Million
Financing: MHFA, Housing Tax Credits
Role: Developer, General Contractor,
Completed: 1990
BROWNS MEADOW
121 Hanson Boulevard
Coon Rapids, Minnesota
148 Unit Apartment Building
New Construction
Project Value: $8 Million
Financing: FHA Mortgage, Tax Exempt Bonds
Role: Developer, General Partner, Manager
Completed: 1992
GATEWAY TERRACE MOBILE HOME PARK
Grand Forl<s, North Dal<ota
229 Unit Mobile Home ParI<
New Construction
Project Value: $5 Million
Financing: Construction-First National BanI<
Financing: Permanent-Pacific Mutual
Role: Developer, Contractor, Manager
Completed: 1992 - 1994
233 Park Avenue South, Suite 20 I , Minneapolis, MN 55415
Tel: 612-332-3000 Fax: 612-332-8119 . www.sherman-assodates.com @
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Rental Projects (cont.)
COOPERATIVE HOUSING
Low and Moderate Income Level
Franklin Commons Cooperative
2109 Blaisdell Avenue
Minneapolis, Minnesota
Acquisition - Rehabilitation
16 Rental Units
Section 8 Certificates
Project Value: $1 Million
Financing: Security Life
Role: Developer, Manager
Completed: 1983
CASTLE ROWHOUSES
2600 Third Street North
Minneapolis, Minnesota
Building is on National Historic Register
Substantial rehabilitation of 11 Rental Units
Project Value: $1 Million
Financing: MHFA, Tax Credits, Section 8
Role: Developer, General Partner, Contractor,
Manager
Completed: 1989
Lowry Hi II East Cooperative
24th and Lyndale Avenue
Minneapolis, Minnesota
New Construction
10 Rental Units
Project Value: $1 Million
Financing: Security Life
Role: Developer, Manager
Completed: 1984
Bell Building Cooperative
Acquisition - Rehabilitation
Rehabbed old Bell Telephone Building
35 Rental Units
Project Value: $3 Million
Financing: Security Life
Role: Developer, Owner, Management
Completed: 1984 - 1986
233 Park Avenue South, Suite 20 I, Minneapolis, MN S541 5
Tel: 612332-3000 Fax: 612-332-8119' www,sherman-associates,com @
.--
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Commercial Projects
BLAINE TOWN SQUARE
109'" Avenue and Radisson Road
Blaine, Minnesota
50,000 sq It Retail
Project Value: $7 Million
Financing: TCF Bank
RoLe: Developer, Owner
Completed: September 2005
SHERATON DULUTH HOTEL
301 East Superior Street
Duluth, Minnesota
Sheraton Hotel 147 Rooms
Project Value: $23 Million
Financing: New Market Tax Credits, TIF US Bank
Role: Developer
Commencing: December 2005
ROBERT STREET RETAIL
Robert Street and Wentworth
51. Paul, Minnesota
4,400 sq It of Retail
Project Value: $1 Million
Financing: Washington County Bank
Completed: September 2005
GARFIELD BUSINESS PARK
Garfield Avenue and Interstate 35
Duluth, Minnesota
50,000 sq It of Office Warehouse
Project Value: $3 Million
Financing: US Bank
Role: Developer 1 Owner
Completed: June 2005
GRANDE MARKET SQUARE
Nicollet Ave. and Burnsville Parkway
Burnsville, Minnesota
30,000 sq feet - Office Space
Project Value: $4.5 Million
Role: Developer, Owner
Competed: July 2004
VILLAGE OF LITTLE CANADA
Rice Street and County Road C
Little Canada, Minnesota
20,000 sq It - Retail/Office
Project Value: $3 Million
Financing: US Bank
Role: Developer, Owner
Commencement Date: October 2004
OLD SPAGHETTI FACTORY
233 Park Avenue
Minneapolis, Minnesota
60,000 sq It - Restaurant/Office Space
Acquisition - Rehabilitation
Project Value: $4 Million
Financing: National City Bank
Role: DeveLoper, Owner, Manager
Completed: 2001
DEEPHAVEN COURT
18279-18285 Minnetonka Boulevard
Deephaven, Minnesota
18,200 sq feet - Retail/ Office Space
Acquisition .
Project Value: $2 Million
Financing: M&I Bank
Role: Owner
Acquired: 2003
CANAL PARK SQUARE
400 Lake Avenue
Duluth, Minnesota
60,000 sq feet - Retail Facility
Acquisition - Rehabilitation
Project Value: $4 Million
Financing: National City Bank
Role: Developer, Owner, Manager
Completed: 1998
DEEPHAVEN SQUARE
18318-18334 Minnetonka Blvd.
Deephaven, Minnesota
24,900 sq ft commercial space
Acquisition
Project Value: $1.25 Million
Financing: M&I Bank
Role: Owner
Acquired: 1999
HAWTHORN CROSSINGS
1000 West Broadway, Minneapolis, Minnesota
50,000 square feet - Retail Shopping Center
New Construction
Built in cooperation with
Fairview Neighborhood Development Corporation
Project Value: $4 Million
Financing: National City Bank
Role: Developer, General Partner, Manager
Completed: 1992 - 1997
CAMDEN CENTER
4200 Lyndale Avenue North
Minneapolis, Minnesota
15,000 square feet - Retail Facility
New Construction
Project Value: $1.6 Million
Financing: National City Bank
Role: Developer, Owner, Manager
Completed: 1997
233 Park Avenue South, Suite 20 I, Minneapolis, MN 55415
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References
CYNTHIA LEE
City of Minneapolis Community
Planning and Economic Development
105 Fifth Avenue South #200
Minneapolis, Minnesota 55401
(612) 673-5095
ALLEN CARLSON
City of St. Paul Planning and Economic
Development
25 West Fourth Street
St. Paul, Minnesota 55102
(651) 266-6565
RICHARD CLARK
Deputy City Manager
City of Des Moines
400 East 1" Street
Des Moines, IA 50309-1891
ROBERT ODMAN
Minnesota Housing
Financing Agency
400 Sibley Street #300
St. Paul, Minnesota 55101
(651) 296-9821
HOWARD GOLDMAN
U.S. Department of Housing
8: Urban Development
920 Second Avenue, Suite 1300
Minneapolis, MN 55402
(612) 370-3051 x4262
HEATHER WORTHINGTON
City of Falcon Heights
City Administrator
2077 W. Larpenteur
Falcon Heights, MN 55113
(651) 644- 5050
KEN DAYTON
MMA Financial
2177 Youngman Avenue
St. Paul, MN 55116
(651) 603-5056
KYLE HENSON
US BanI<
601 Second Avenue South
Minneapolis, Minnesota 55402
(612) 303-3685
MARK JOHNSON
M 8: I BanI<
651 Nicollet Mall
Minneapolis, Minnesota 55402
(612) 798-3883
JIM WEICHERT
Deloitte 8: Touche, LLP
4300 Norwest Tower
Minneapolis, Minnesota 55402
(612) 397-4010
ANGELA CHRISTY
Faegre 8: Benson, LLP
2200 Wells Fargo Center
90 South Seventh Street
Minneapolis, Minnesota 55402
(612) 336-3261
KATY LINDBLAD
Fannie Mae
386 North Wabasha Street
St. Paul, MN 55102
(651) 298-1025
233 Park Avenue South, Suite 20 I, Minneapolis, MN 55415
Tel: 612-332-3000 Fax: 612-332 81 \ 9 . W\^M'.sherman-associates.com @
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The Essex
The Landing
Shernlal1. Associates specializes In the design,
construcdon and financing of quality housing aDd
commercial properties in l\liirlI1esota, and the adjoining
four state area. Sherman Associates has developed
and/or rehabilitated over 4,000 multifamily and
single-family homes aDd over 2 111i11ion square feet of
commercial ploperty. These developments include a
diversified range of housing types, including luxurious
s-ingle-farnily homes, multi-family townhouses, and a
variety oflow and moderate income tax credit apartment
properties. The company's experience also includes
constructioD of new retail comn1crcial buildings and
office warehouse facilities. With ove" twenty-three years
of development and construction experience, Sherman
Associates is able to offet a diverse range of services in
the single faluily, multi-family and cOll1mercial markets.
They encompass:
Development
Equity and Debt Funding
Design Build Services
Marketing Programs/Feasibility
Financial Analysis/Feasibility
Federal, State Housing Program.s
Construction
Architectur~l Design
Site Analysis
Property IVlanagerilent Services
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LittLe, Cilnadil is il mixed,use redevelopment
1(\S~l~<;! 'at Rice Street and Little Canada Road,
fhi{reiv mixed,use community is part of the
'cjtyYisTan to creilte a neW gateway to the city of
LittLe 'Canada, The Phase I master plan calls for
79,0 units of independent living apilrtments, aver
12,90,0 sf of commerciill ilnd 50 owner,occupied
townhomes, Philse II calls for additional street
froiit comll1ercial and residential uses, Key design
prinCIples include mix of uses, strong streets cape
and public realm design, below grade parking and
transit orientation, Construction is underway with
completion scheduled for late 2003,
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Grande Market Place is tile first phase for Burnsville's 32.acre
"Heart of the City," The overall "Heart of the City" project will
boast wide sidewalks, brick crosswalks, a tree.lined garden
median, historic streetlights and hanging baskets as bachdrop for
a compact, diverse, and vibrant town center with condominiums,
townhouses, and more than 400,000 sf of retail and comniercial
space. Phase I, Grande Market Place, consists of 113 rental
apartments over 12,000 sf of retail and commercial space, The
residential includes 40% of dwellings with levels of affordability
at street level. An additional 24,000 sf of office and commercial
space is 'provided within an icon building at Burnsville ParkWay
and Nicollet. TIlese two buildings have differing facades facing
the street with shared parhing in the rear. Streets gently slope
north offering a great view of downtown,
';-JlH S fFilET LOF TS
The 9th Street Lofts conversion will create 48 state-
of-the-art open plan condominium flats and two story
dwellings within the shell of a pre-existing industrial
warehouse. Like the Lowry Building Renovation,
this warehouse structure. features heavy concrete
construction and large indclstrial window openings.
ESG is working with Lander Sherman to create an
innovative new interpretation of "loft living" which
will provide open yet livable interior environments
within the stout industrial shell. ESG is developing
a flexible "kit of parts" for the loft dwelling interiors
including fixed core areas and a series of moveable
interior components to allow for a variety of living
styles_ The 9th Street Lofts is part of the Northeast
Quadrant renaissance from a worn industrial sector
into a vibrant St. Paul urban neighborhood_ The
project sales are under way and construction start-up
is scheduled for early Spring 2003_
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The Marl,et Lofts is a unique integration of urban loft
condominiums situated over an indoor Farmers Market.
The indoor Farmers Market is an extension of the exterior
Framers Market located ill the historic Lower Town District
of Saint Paul. Minnesota. This new infill project will create
a fascinating new interpretation of vertical mixed.use which
will build on the pedestrian and market activity at Street
Level. The project will feature 42 loft style dwellings with
open plans and large window openings. Unit sizes range
from approximately 1,000 SF to 1,450 SF to maintain a level
of affordability.
TO: EDA
FROM: Kirsten Parten heimer, Community Development Specialist
DATE: May 18, 2006
SUBJECT: May Update of Community Development Activity
The following is an update of Community Development activity through mid May of 2006. If
you have any comments or questions you may contact me at 763-706-3674.
ACTIVITY CENTER
At its April 10, 2006 meeting, the Council appointed a number of Columbia Heights residents,
civic leaders and business owners to an Activity Center Advisory Committee (ACAC). The
committee's purpose is to help obtain public input and assist the Council in establishing the
need for a new community facility and reviewing different options for any proposed facility.
The ACAC is working with staff from the consulting firms Ehlers & Associates and JMS
Communications.
At the ACAC's first meeting on April 26, members received an overview of the public
participation process and their roles as committee members. They also discussed the
Maxfield Research market study, an analysis conducted in November 2004 to evaluate the
feasibility of a community recreational facility in Columbia Heights. For the conclusion, they
broke into groups and brainstormed the advantages and disadvantages of four proposed sites:
Valley View Elementary School, the Heritage Heights Neighborhood, the former N.E.1. site and
the Huset Park area. It was clear that no one site stood out as obvious best location and all
sites remain open for discussion.
On Saturday, May 6, 2006, members of the Activity Center Advisory Committee (ACAC) toured
the Andover YMCA Community Center and the New Brighton Family Service Center to see the
amenities and programs offered in each facility.
Information from all meetings will be posted on the City's website at: http://www.cLcolumbia-
heights.mn.us/departments/CommCenter.asp. Or, from the main page, click on "departments,"
"Community Development" and then "Community Activities Center" under "Redevelopment
Updates."
The ACAC will meet again on Wednesday, May 24, 2006 to prepare for its first open house to
be held at the end of July in Murzyn Hall. A newsletter to go out to every household in the
Columbia Heights School District will let residents know of the time and date of the open
house.
The Council will be updated on the work to date by the ACAC at its June 5, 2006 work session
and will have a chance to review and comment on key documents.
37TH AND STINSON
On March 28, 2006, Len Pratt of Pratt Ordway Homes entered into a preliminary
development agreement with the EDA for the redevelopment of the old Apache Theater
property. Pratt has teamed with Comforts of Home, a builder of senior residential
communities, to build two buildings, one with 45-65 assisted living units and another
with an equal number of units for independent seniors.
Over the next couple of weeks, the developer is preparing a redevelopment proposal
with accompanying financial information and will report back to the EDA.
49TH AND CENTRAL
Borders Foods, owner of the Taco Bell and the former Dave's Car Wash, has been
working with staff to develop a redevelopment plan for the two properties. However,
representatives for the company did not get their application for site plan approval in on
time for the June 6, 2006 Planning and Zoning Commission meeting and no other plans
have been formally submitted to the City at this time.
Dave's Car Wash is currently not in operation.
HERITAGE HEIGHTS
The Citizens Advisory Committee (CAC) convened its third meeting on May 17, 2006.
The meeting started with an informal presentation explaining crime statistics in Grid 8
over the past five months and educating residents on how they can best look after their
property and their neighborhood. Residents asked the officer present questions about
how to handle problem properties and nuisance issues. They were then informed of the
Council's decision to resume additional police detail in Grid 8 from mid-May through
September.
CAC members reviewed the finalized goals for the redevelopment and renewal of their
neighborhood and then received an explanation of five detailed concept plans. The
plans presented a variety of flexible scenarios for redevelopment and renewal and
included ideas such as townhouses and multi-family housing units, new and refurbished
single-family homes, a community center, parkland, improved pedestrian connections
throughout the neighborhood, landscaping and redeveloped commercial and office
space along Central Avenue.
Despite the excitement CAC members expressed for the plans and their determination
to see change happen quickly, they learned that the recent changes in eminent domain
law would affect the feasibility of any of the plans becoming reality. The group
discussed how the changes in the law will affect first-ring suburbs like Columbia Heights
and what it means for their neighborhood and their ability to remove blight.
Information on Heritage Heights, including handouts and minutes from past CAC
meetings, is available on the City website at www.cLcolumbia-heights.mn.us.Click
under "Departments," "Community Development" and then "Redevelopment Updates."
The information from the May 17 meeting will be available on the site no later than the
first week of June.
The next step is to meet with the City Council during a council work session to present
the findings so far and to seek feedback. This meeting is schedule for June 5.
SARNA's
A final development agreement with Sarna, Inc. will be presented to the EDA for
consideration on May 23, 2006.