Loading...
HomeMy WebLinkAboutEDA RES 2008-07 RESOLUTION 2008-07 FIRST AMENDMENT TO AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT THIS AGREEMENT, made on or as of the / o day of Jillt€-, 2008, by and between COLUMBIA HEIGl-ITS ECONOMIC DEVELOPMENT AUTHORITY, COLUMBIA HEIGI-ITS, MINNESOTA, a public body corporate and politic (the "Authority"), established pursuant to Milmesota Statutes, Sections 469.090 to 469.1081 (hereinafter referred to as the "Act"), the CITY OF COLUMBIA HEIGHTS, a Minnesota municipal corporation (the "City") mld HUSET PARK DEVELOPMENT CORPORATION, a MiImesota corporation (the "Redeveloper"). WITNESSETH: WHEREAS, the pmiies hereto entered into that certain Amended and Restated Contract for Private Redevelopment dated as of August I, 2007 (the "Contract"), providing for redevelopment of certain property in the City described as the Redevelopment Propeliy; and WHEREAS, the pm.ties have determined a need to amend the Contract in certain respects, in light of chmlging market conditions. 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: 1. In Section 1.1 of the Contract, the definition of Minimwn Improvements is modified as follows (italicized language shows the revision): "Minimum Improvements" means the construction on the Phase I Property of approximately 123 units of owner occupied townhomes (Phase IA) and 80 units of senior rental housing ("Phase IB") (together, "Phase I"); and the construction on the Phase II Property of approximately 103 units of owner-occupied townhomes ("Phase IIA") and 51 additional units of owner occupied townhomes ("Phase IIB"), and the construction on the Phase III Property of approximately 47 owner occupied condominium or cooperative housing units ("Phase IIIA", approximately 52 owner occupied condominium or cooperative housing unit together with approximately 11 ,650 square feet of commercial facilities ("Phase IIIB"), and approximately 84 owner occupied condominium or cooperative housing units ("Phase IIIC"). 2. Section 3.I(d) is modified as follows (italicized language shows the revision): (d) The Redeveloper shall not Transfer any portion of the Redevelopment Property to any Subdeveloper (or to itself or an Affiliate for any Phase or pOliion thereof retained and constlUcted by Redeveloper) at price less than the following: $ 39,000 $ 18,000 $300,000 $ 10,000 per townhome (As amended August 1,2007) per condominium or cooperative unit for the commercial pOltion of Phase III per senior rental unit (as amended June 16, 2008) The above amounts ale payable at closing on any such Transfer, provided that if the Subdeveloper w1dertakes site improvements, any portion of such payment attributable to the cost of site improvements on the transferred Parcel may be deducted and paid by the Subdeveloper as those costs are incmred. In addition, each Subdeveloper shall pay to the Redeveloper at closing on such land sale the net present value of Projected Tax Increment 1i'om the transferred Parcel (calculated as described in Section3.8(b) hereof). Upon such payment, the Authority shall issue the Initial Note for such amount, subject to all the terms and conditions of Section 3.8. 3. revision): Section 4.3 of the Contract is modified as follows (italicized language shows Section 4.3. Completion of Construction. (a) Subject to Unavoidable Delays and the provisions of paragraphs (b), ( c) and (d) below, the Minimum Improvements must be constructed in accordance with the following schedule: Phase I: Phase II: Phase III: As of the date of the Amended and Restated Contract, the internal site improvements and at least 80 percent of the required number of units for Phase IA are complete. Redeveloper must substantially complete all internal site improvements for Phase lB, including roads, and at least 80 percent of required number of housing units for Phase lB, by December 31, 2010. As of the date of the Amended and Restated Contract, Phase IIA is under construction. Redeveloper must substantially complete all internal site improvements, including roads, together with at least 80 percent of required number of housing units for Phase IIA, by April 30, 2009. Redeveloper must substantially complete all internal site improvements, including roads, together with at least 80 percent of required number of housing units for Phase lIB, by December 31, 2009. Redeveloper must construct and complete all internal site improvements, including roads, and at least 80 percent of the required number of housing units, according to the following schedule: Phase IIIA: Commence by December 31, 2008; complete by December 31,2010. Phase IIIB: Commence by December 31, 2010; complete by December 31,2012. Phase IIIC: Commence by December 31, 2012; complete by December 31,2014. 2 4. Section 3.8 (h) and (i) of thc Contract are modified as follows (italicized language shows revision): (h) Status under Amended and Restated Contract. Prior to the date of the Amended and Restated Contract, the parties elected not to proceed with issuance of Initial Notes. As an alternative to a pOltion ofthe Initial Notes, the Authority issued its Tax Increment Revenue Bonds, Series 2007 in the principal amount of $2,890,000 (the "Series 2007 Bonds"). The Series 2007 Bonds were issued under substantially the terms described for Refinancing Notes under section 3.10 hereof; and the Series 2007 Bonds will be treated as Refinancing Notes for the purposes of tins Agreement except to the extent otherwise provided herein. Proceeds of the Series 2007 Bonds will be used to reimburse a portion of the Public Redevelopment Costs inclli'red by Redeveloper to date. The net amount of the Series 2007 Bonds disbursed to Redeveloper will be counted toward the maximum aggregate principal amount of Initial Notes under Section 3.8(b), as such amount may otherwise be adjusted under the terms of tl1is Agreement. (i) Additional Initial Notes under Amended and Restated Contract. Upon approval of tl1is Amended and Restated Contract, the Authority also approved issuance of Initial Notes (designated as the $6,650,000 Taxable Tax Increment Revenue Note, Series 2007A, or the "Series 2007A Note"), under the terms of tins Section, in a principal amount equal to the balance of Public Redevelopment Costs incurred to date by Redeveloper in excess of the net amount to be disblli'sed ii'om proceeds of the Series 2007 Bonds, subject to the maximum principal amount of Initial Notes under Section3.8(b) as such amount may otherwise be adjusted under the terms of tins Agreement. The Authority acknowledges that, in sizing the Series 2007 A Note, the Authority actually deducted the principal amount of the Series 2007 Bonds (rather than the net proceeds) fi'om the maximum amount of Initial Notes The maximum amount of Initial Notes (adjusted as of date of issuance of the Series 2007 Bonds) was $9,533,534, and net proceeds of the Series 2007 Bonds were in the amount of$2,537, 846. Therefore, the Series 2007A Note could have been issued in a principal amount of $6,995,688 (assuming certification of eligible cost.I). The Authority ac1a1owledges that upon Redeveloper's request, the Authority will issue additional Initial Notes in the principal amount of $345,688, together with any other amount that may be available because offurther adjustment under Section 3.9, and subject to all other terms and conditions afthis Agreement. 5. The Contract remains in full force and effect and is not modified except as expressly provided herein. 3 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. B . /~'<di'" ;r/ ;L- / .4:1- :(,( ~ --. .;Y,/,(a j{,,o; /<, ' xecutive Director- Walter R. Fehst By Its STATE OF MINNESOTA ) ) SS. COUNTY OF ANOKA ) The foregoing instrument was acknowledged. pefore me this -.Lk day of .:J' u.~ , 2008, by GO-'; i L. ))e.-Ktr.s Ii \I and W<\.\-krR. f~\~1he President and Executive Director of the Columbia Heights Economic Development Authority, a public body politic and corporate, on behalf of the Authority. ~/ /l &-LL..._ Notary Public CHl:RVLA. BAKKEN NOTARY pustle . MINNESOtA. fIN COMMISSION EXPIRE8-1I3112012 4