HomeMy WebLinkAboutContract 2123Preliminary Development Agreement by and between the City of Columbia
Heights and Stadium Village Properties, LLC
THIS AGREEMENT, dated this 25t~' day of August, 2008, by and between the City of
Columbia Heights, a municipal corporation under the laws of Mimiesota (the "City) and
Stadium Village Properties, LLC ("the Developer"):
WITNES SETH:
WHEREAS, the Developer is owner of property located at 3989 Central Ave. and also has
certain contractual rights tluough an Agreement dated July 20, 1982 ("Agreement"). The
original Agreement was between the Columbia Heights Housing and Redevelopment
Authority and Terry Everson, and has been amended and assigned from time to time, and
WHEREAS, the aforementioned 1982 Agreement provides for the Developer to operate a
369 stall parking ramp with the ability to purchase said ramp on July 20, 2022, and
WHEREAS, the Agreement also separately defines a plaza area ("Walkway Property")
which is leased to the Developer under a 99 leasehold year provision (as illustrated on
Exhibit A), and
WHEREAS, the Agreement allows the City to sell the Walkway with the Developer having
the first right of refusal, and
WHEREAS, the City has been approached by the Developer with a proposal that
effectively transfers the City's Walkway Property to the Developer, in exchange of the
Developer reinvesting approximately $500,000 in reconstructing the outside facade of the
subject building located at 3989 Central Ave., and
WHEREAS, the Developer needs to initiate the reconstruction, due to economic and
seasonal considerations, prior to the City being able to complete all of the various processes
that are necessary to convey the property, and
WHEREAS, the City is desirous to have the reconstruction project completed as soon as
possible and is of the opinion that the end results will constitute a positive community
reinvestment, and
WHEREAS, the City elects, through this agreement, to give preliminary approval to the
subject transaction based on the understanding that the City must undergo a series of due
diligence processes and will make every effort to mitigate any situation that would make
the transaction unfeasible.
NOW, THEREFORE, in consideration of the foregoing and the obligations set forth herein,
the parties agree as follows:
1. The City and Developer agree in principle that the City will sell the Walkway Property
to the Developer, which at this time is assumed to have a fair market value of
approximately $250,000. In turn, the City will contribute a like amount of funds to the
2123
Developer, in exchange of the Developer reconstructing the facade of the subject
building.
2. The form of this negotiation may differ from a cash transaction, but the end result will
be the Developer securing fee title to the Walkway Property in exchange for the facade
reconstruction.
3. City actions necessary to complete the transaction include:
a) Securing of an appraisal
b) Processing a minor subdivision pursuant to City Ordiance 9.114.
c) Securing a certificate of survey
d) Amendments to the 1982 Agreement as applicable
4. In order to defray the City's direct administrative costs associated with this transaction,
the Developer agrees to amend the 1982 Agreement so as to transfer the responsibility
for the purchase of causality insurance on the parking ramp from the City to the
Developer. The Developer also acknowledges that the Walkway will become taxable
property.
Staff will investigate any State law issues associated with the Business Subsidy Act
(MSA) 116J.993 to 116J.995, as amended.
6. Both parties recognize that the City's transaction must meet local, State and Federal
law in order to be allowed.
7. All attempts to mitigate issues that may prevent this transaction from occurring will be
attempted in a good faith manner.
Notice for connnunication between the parties shall be delivered to the following:
(a) As to the City:
City of Columbia Heights
590 40t~' Avenue NE
Columbia Heights, MN 55421
Attn: Scott Clark
(b) As to the Developer:
Stadium Village Properties, LLC
1313 Fifth Street SE Suite 100
Minneapolis, MN 55414
Attn: Dave Jasper
IN WITNESS WHEREOF, the City has caused this Agreement to be
duly executed in its name and behalf and its seal to be hereunto duly
affixed and the Developer has caused this Agreement to be duly
executed in its name and behalf on or as of the date first above written.
CITY OF COLUMBI~i HEIG~ITS, NIINNESOTA
By '
ts: Mayor- ~ary L. Peterson
By ~~
Its: City Manager- alter R. Fehst
H:\Shared\Comnumity Development~Parking Ra~nps\3989 Ramp~I'reliminary Development Agreement 8-18-2008 FINAL
STADIUM VILLAGE, LLC
~ ~ ~, 3
AMENDMENT TO THE
MANAGEMENT AGREEMENT FOR
PARKING FACILITIES AND
LEASE OF THE PLAZA PROPERTY
DATED JULY 20, 1982
THIS AGREEMENT, made as of the day of ~~ ab , 2008, is by and
between the City of Columbia Heights, a Mim~esota municipal corporation (hereinafter referred
to as the "City"), and Stadium Village Properties, LLC, a Minnesota limited liability company
(hereinafter referred to as the "Redeveloper").
RECITALS
WHEREAS, pursuant to that certain. Management Agreement for Public Facilities and
Lease of the Plaza Property by and between the Housing and Redevelopment Authority in and
for the City of Columbia >=Ieights (the "Authority"} and Terry Evenson, dated July 20, 1982, as
modified by that certain Agreement for Modification of Management Agreement for Public
Facilities dated February 11, 1991, between the City and Zaidan Holdings, Inc. (as Terry
Evenson's assignee) (hereinafter collectively referred to as the "Management
Agreement/Lease"), as the Authority's interest therein has been assigned to the City, the City
granted to Terry Evenson, as the Redeveloper, an option to purchase the Parking Ramp Property
subject to certain teens and conditions set forth in Section 5.03 of said original Management
Agreement dated July 20, 1982; acid
WHEREAS, Stadium Village Properties, LLC is the holder of Terry Evenson's interest in
the Management Agreement/Lease and is referred to herein as the "Redeveloper"; and
WHEREAS, the City has subsequently purchased real property commonly referred to as
961 Gould, and legally described as: Waltons Real of Lots 33&34 Block 6 Res Hills, Columbia
Heights. Lot 19, Block 1, Waltons Rear of Lots 33&34. (hereinafter referred to as the "Gould
Property") which property is located adjacent to the Parking Ramp Property, and is anticipated
by the parties hereto to be used in conjunction with the operation of the Parking Ramp Property.
NOW, THEREFORE, the parties hereto agree as follows:
1. That Redeveloper is hereby granted the option to purchase the Gould Property
pursuant to the same terms and conditions established in the Management Agreement/Lease.
IN WITNESS WHEREOF, the City and the Redeveloper have caused this Agreement to
be executed in their respective corporate names, as of the date first written above.
CITY OF CO
STATE OF MINNESOTA)
)SS
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before me this ,~ ~ `-"day of ~ ~ ',ten , 2008
by nary Peterson and Walter R Fehst, the Mayor and City Manager of the City of Columbia
Heights, a Miiulesota municipal corporation.
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~~` ~~Otary PUb11C
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STATE OF MINNESOTA)
}SS
COUNTY OF )
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Properties, LLC, atMiiu7esota lim5ted liabi
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me thi day of ~,t~~~st2008
of Stadilnn V lage
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By: ~-
Its: City Manager-Walter R. Fehst
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AMENDMENT TO THE OPERATIONS OF THE PARKING RAMP AGREEMENT
DATED AUGUST 25, 2008, BETWEEN THE CITY OF COLUMBIA HEIGHTS AND
STADIUM VILLAGE PROPERTIES, LLC
THIS AGREEMENT, made as of the ~ day of ~% C--~ ~ ~fk" , 2008,
between the City of Columbia Heights, a Minnesota municipal corporation (hereinafter referred
to as the "City"), and Stadium Village Properties, LLC, a Minnesota limited liability company
(hereinafter referred to as the "Operator").
RECITALS
WHEREAS, on August 25, 2008, the City and Operator entered into an Agreement for
the operation of the parking ramp owned by the City and located at 950- 40"' Avenue NE in
Columbia Heights; and
WHEREAS, the City has subsequently purchased real property commonly referred to as
961 Gould, and legally described as: _Waltons Real of Lots 33&34 Block 6 Res Hills, Columbia
Heights. Lot 19, Block 1, Waltons Rear of Lots 33&34 (Hereinafter referred to as the "Gould
Property") which property is located adjacent to the Parking Ramp Property; and
WHEREAS, both the City and Operator desire to use said Gould Property in conjunction
with the operation of the parking ramp.
NOW, THEREFORE, the parties hereto agree as follows:
1. City shall retain ownership of the Gould Property, subject to any option rights
created by other agreements related to the parking ramp facility referenced herein.
2. Operator shall operate and maintain the Gould Property in conjunction with the
parking ramp facility consistent with its existing obligations.
3. Operator shall demolish the existing building, foundation, and any cement
surfaces on the Gould Property. Utility cut off at the curb will be done by the City at the
Operator's expense. All such demolition and related work on the Gould Property shall be at the
Operator's sole expense.
4. City shall allow Operator to use the Gould Property for snow storage from the
adjacent property, with the hours for clearing/dumping snow subject to City approval. Best
efforts to promote infiltration on the site shall be used by the Operator.
5. All grading done on the Gould Property shall be performed pursuant to a grading
plan approved by City and will take place in 2009 weather and ground conditions permitting.
>`~Iinimal grading and erosion control. shall. take place upon removal of the structure.
6. Operator shall replace any trees removed from the Gould Property as part of the
demolition and grading. All dead trees shall be removed. Tree replacement shall be one-for-one
with. the size and species of tree approved by City.
7. Operator shall provide screening to the adjacent property to the east of the Gould
Property through the use of plantings as approved by City.
8. Operator shall provide year-round maintenance on the Gould Property. Said
maintenance shall include, but not necessarily be limited to grass cutting, weed conhol,
debris/garbage collection, plant/tree removal and replacement, and any re-grading necessary to
remain compliant with the approved grading plan.
9. Operator shall procure and maintain insurance on the Gourd Property consistent
with. the existing insurance obligations covering the parking ramp facility.
IN WITNESS WHEREOF, the City and the Operator have caused this Agreement to be
executed in their respective corporate names, as of the date first written aboy~:---~,,~
CITY OF COL
ayor
IA HEdGHTS
. Peterson
'' _ ,~'.-~, f ~.-
~r
Its: City Manager-Walter R. Fehst
STATE OF MINNESOTA)
)SS
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before me this ~~ ~ '~ay of C<< ~~~_~~z_, 2008
by Gary Peterson and Walter R Fehst, the Mayor acid City Manager of the City of Columbia
Heights, a Mimlesota municipal corporation. ~~
t,
. r.~ .,. otary Public
a
STADIUM VILL E PROPERTIES, LLC
By: -~ --
It .
`~,..
STATE OF MINNESOTA)
)SS
COUNTY OF }
"~°`°~ The foregoi 1g ins rument was acl~~noi~ledgec~ be e z~1e this~~ day o~ "--'~~,~aa 2008
by `~ `~ `.~,. ~ ~~~ ,the ~ ~ ~ uf°~ aim 'llage
Properties, LL , a Mim~esota limited liabil ty corporation... ~ A
f
.ry R
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Notary P~ ~ __:NC~~F~: ~f{LLI `
r ~us~~e - ~~tGr~ s
. - ~~~r ~~mmissir- ~zpires Jatt, 31 a _
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QUIT CLAIM DEED
STATE DEED TAX DUE HEREON $
Date:
2009
FOR VALUABLE CONSIDERATION, The City of Columbia Heights, a municipal corporation
under the laws of Minnesota, Grantor, hereby conveys and quitclaims to Stadium Village
Properties, LLC, a Minnesota limited liability company, Grantee, real property in Anoka County,
Minnesota, described on the attached Exhibit A.
Together with all hereditaments and appurtenances belonging thereto.
GRANTOR CERTIFIES THAT GRANTOR DOES NOT KNOW OF ANY WELLS ON THE
DESCRIBED REAL PROPERTY.
THE CITY OF COLUMBIA HEI HT
Its: Mayor
STATE OF MINNESOTA )
SS.
COUNTY OF ANOKA )
The foregoing was acknowledged before me this~_ day of ~ ~ ~~ ~~ ~ , 2009, by
W~~~ ~ , ~ ,,v the d _~ ~ of The City of Columbia
Heig ts, a municipal corporation under the h~tivs of Minnesota, on behalf of the corporation.
a Minnesota Muni pal colYorati ,
/ ,
Gary Petersoir
E- -- .
f -~ . ., _ ~a.v.
rotary Public
Tax Statements for the Real Property Described
in this Instrument should be sent to:
EXHIBIT A
LEGAL DESCRIPTION
Those parts of Lots 27 through 31, Block 6, Reservoir Hills and those parts of Lots 23 and 24,
Block 1, Walton's Rearrangement of Lots 33 and 34, Block 6, Reservoir Hills and of the vacated
alley abutting Block 1, "Walton's Rearrangement of Lots 33 and 34, Block 6, Reservoir Hi11s", as
dedicated in said plat, lying within the following described tract: Commencing at a point on the
south line of said Block 1, Walton's Rearrangement distant 18.00 feet west of the southeast
corner of Lot 23, said Block 1, Walton's Rearrangement; thence northerly on a line 18.00 feet
west of and parallel with the east line of said Lot 23, a distance of 87.00 feet, to the actual point
of beginning of the tract to be described; thence continuing northerly on the extension of said
line to the north line of Block 6, Reservoir Hills; thence westerly along said north. line of Block
6, to a point being 47.23 feet easterly of the northwest corner of Lot 30, Block 6, Reservoir I-Iills;
thence southeasterly, to the point of beginning.
Reserving and subject to easements to the City of Columbia Heights for roadway purposes over
the north 4.00 feet of the west 232.00 feet of said Block 6, Reservoir Hills.
Reserving to the City of Columbia Heights a utility easement over, under, and across the east
15.00 feet of the west 22.00 feet of Lot 27, Block 6, Reservoir Hills, and the east 15.00 feet of
the west 22.00 feet of Lot 23, Block 1, Walton's Rearrangement of Lots 33 and 34, Block 6,
Reservoir Hills, and that portion of the vacated alley abutting Block 1, "Walton's Rearrangement
of Lots 33 and 34, Block. 6, Reservoir Hi11s", as dedicated in said plat, lying between the
northerly extensions of the east and west lines of the east 15.00 feet of the west 22.00 feet of said
Lot 23, Block 1.
441789_1