HomeMy WebLinkAboutNortheast Securities Corp.
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A {; R E E !1 E 1, l'
:rHIS AGREEMEln dated this
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1"3 day of J.. -, 1978,
by and betveen 1,ortheas t Securities Corpora tion, hereinafter
referred to as "Corporation", and the. Housing and nedevelopment
Authority of Col umbia. lieights, "!innesota, hereinafter referred
to as "HRA";
WriEREAS. Corporation is duly organized under the laws
of the State of '!:innesota. and the holder of the maj ority of
the stock in r;ortheast State Bimk of r,inneapolis, a ',innesota
banking corporation, and
WriEREAS. ~alter c. TIasmussen is the owner of all the
outstanding stock in Corporation and is the President of
Corporation and President of the !.ortheast State Bank, and
\\'HEREAS, the r.orporation and the ;;ortheast State Bank
is desirable of establishing a working relationship with the
HRA, the Countv of Anoka and the City of Columbia Heights,
to assist in redevelopment of the "downtown business district"
of Columbia Heights, located at 40th and Central Avenue
tl. E.. and
..'t1EREAS, the County of Anoka has developed an Overall
Economic nevelopment Plan in accordance with the Public
Works and Economic Development Act of 1965 as amended, and
the County and HRA have entered into a Joint Powers A~reement
relating thereto, and
~'HEREAS, contemporaneously with this Agreement, the
Northeast State Bank will be entering into a lease with the
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ERA with the intent to establish a detached bank facility at
the premises co=only known as 3982 Central Avenue !LE..
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Columbia Reights, Minnesota, and
WHEREAS, the Bank, upon the approval by the "~innesota
Commissioner of Banks of its operation of a detached facility
at the aforementioned location, will staff such a bank
facility employing approximately eight to ten people therein,
and
~~EREAS, the Bank is employing on its staff a registered
architect to assist the Pank \,ith its detached facility
location and work with the HRA, City of Columbia Heights and
County of Anoka, in the plan for development of a multi-
purpose office complex which "1Ould house the bank and other
tenants or owners and further assist in the redevelopment of
the 40th and Central Avenue N.E. area, and
WHEREAS, the 11RA has indicated its intention to redevelop
said area and the City of Columbia Heights has established
a development district encompassing said area, and
.nIEREAS, the HRA will encourage the use of tax increment
financing, if available, and/or the use of industrial revenue
bond financing for redevelopment land acquisitions and
construction.
NO\~. THEREFORE. IT I S AGREED:
1. ~hat the Corporation throu8h the architect hired
by the Northeast State Bank nnd the HRA staff shall proceed
to develop a feasibility study which shall be completed
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within eighteen months after the date of this Agreement.
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2. 7hat Corporation hereby makes a commitment to the
BRA to develop or participate in the develoDment of a multi-
purpose office complex at 40th and Central ~venue R.E., and
to commit the sum of '1\.]0 Hundred "'ifty "Thousand Dollars
($250,000.00) to Five :Hundred Thousand Dollars ($500,000.00)
for the construction of such a new facility at the 40th and
Central Avenue N.E. area, subject to the following:
a. Execution and necessary approvals of the
lease by and between the 1lortheast f:tate Rank and the Housing
and nedevelopment Auth~rity for the premises at 3982 Central
Avenue Il.E., Columbia Heights, ~~innesota. for bank purposes.
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b. Subject to the favorable report of the arc~itect
retained by the Northeast State Bank indicating that such a
multi-purpose office complex is economically feasible which
would include availability of financing for such a project,
and the availability of land for the construction of such a
proj ect.
c. 7he average deposits of the ~ortheast State
Bank detached facility at 3982 Central Avenue H.E.. of the
last six months of the first two-year period of operation
being $6,000,000.00 with 60% thereof time deposits, and 60%
thereof demand deposits.
d. The approval of the State of Hinnesota Commissioner
of Banks for the movement of any detached facility to a new
multi-purpose office complex.
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E. ~he approval of the Tederal neposit Insurance
Corporation of the move of the detached facility to a new
multi-purpose office complex.
HORTH;;~ST ~TI80RATlON
~y:/~q~{ -'
~a ter ~ ~smus~n
President
s
By:
By, a/&i~
Dean s. Otterson, xecutive Director
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