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HomeMy WebLinkAboutContract 21802180 FIRST AMENDMENT TO AlVIENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT THIS AGREEMENT, made on or as of the ~ clay of a , 2008, 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 refereed to as the "Act"), the CITY OF COLt) MBIA HEIGHTS, a Mimxesota municipal corporation (the "City") and HUSET PARK. DEVELOPMENT CORPORATION, a Minnesota corporation (the "Redeveloper"}. WITNESSETH: WHEREAS, the parties hereto entered iota that certain Amended and Restated Contract far Private Redevelopment dated as of August 1, 2007 (the "Contract"), providing for redevelopment of certain property in the City described as the Redevelopment Property; and WHEREAS, the parties have determined a need to amend the Contract in certain respects, in light of changing market conditions. NOW, THEREFORE, in consideration of tlxe premises and the mutual obligations of tlxe 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 Minimum Improvements is modified as follows (italicized language shows the revision): "Muurnum Improvements" means the construction an the Phase I Property of r,~ r + ~ fT~hooA T41 ~n~1 ~n unity ~fSOn7rJY Yvvrtnl approximately 1~~ uldts of ovti~iler occupied ~oFN~ aime5 Ll cwv is>~ housing ("Phase IB") (together, "Phase I"); and the construction on the Phase II Property of approximately 103 units of owner-occupied townhomes ("Phase IIA") axed 51 additional units of owner occupied townhomes ("Phase IIB"), and the construction on the Phase III Property of approximmately 47 owner occupied condominium or cooperative housing units ("Phase IIIA", approximately 52 owner occupied condominium or cooperative housing uTUt together with approximately 11,650 square feet of commercial facilities ("Phase IIIB"), and approxixmately 84 owxzer occupied condominium or cooperative housing units ("Phase IIIC"}. 2. Section 3.1(d) is modified as fellows (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 ally Phase or portion thereof retained and constructed by Redeveloper} at price less than the fallowing: $ 39,000 per townhome (As amended August 1, 2007} $ 18,000 per condominium or cooperative unit $304,000 for the commercial portion of Phase III $10, 000 per seniof° rental unit (as amended June 16, 2008) The above amounts are payable at closing on any such Transfer, provided that if the Subdeveloper tuldertakes site improvements, any portion of such payment attributable to the cost of site improvements on the transferred Parcel may be deducted azzd paid by the Subdeveloper as those casts are incurred. h1 addition, each Subdeveloper shall pay to the Redeveloper at closing on such land sale the net present value of Projected Tax Increment from the transferred Parcel (calculated as described in Section 3.8(b} hereof). Upon such payment, the Authority shall issue the Initial Note for such amount, subject to all the teens and conditions of Section 3.8. 3. Section 4.3 of the Contract is modified as follows (italicized language shows revision}: Section 4.3. Completion of Construction. (a) Subject to Unavoidable Delays and the provisions of paragraphs (~o}, (c} ar~d (d} below, the >~~Iititn~.nn Itnprove?nents must be constructed in accordance with the following schedule: Phase I: 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 intenlal site improvements far Phase IB, including roads, and at least 80 percent of required number of housing units for Phase IB, by December 31, 2010. Phase IL As of the date of the Amended and Restated Contract, Phase IIA is under construction. Redeveloper must substantially complete all internal site itnpraverner~ts, inncluding roads, together ;~ritl~ at least 80 pP,-c.Pnt of required. number of housing units for Phase IIA, by Apri130, 2009. Redeveloper must substantially complete all. internal site improvements, includ>z1g roads, together with at least 80 percent of required number of housing units for Phase IIB, by December 31, 2009. Phase III: Redeveloper must construct and complete all internal site improvements, including roads, and at least 80 percent of the required ntunber of housing units, according to the following schedule: Phase IIIA: Commence by December 31, 2008; complete by December 31, 2010. Phase IIIB: Continence 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 the Contract are modified as follows (italicized language shows revision): (1z) Status wider Amended alld Restated Contract. Prior to file date of the Amended and Restated Contract, the parties elected not to proceed with issuance of Initial Notes. As an altenlative to a portion of the 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 teens described for Refinancing Notes wader section 3.10 hereof, al~d the Series 2007 Bonds will be treated as Refinancing Notes for the purposes of this 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 incurred by Redeveloper to date. The net amount of the Series 2007 Bonds disbursed to Redeveloper will be cowited toward the maximum aggregate pl-incipal amount of hlitial Notes under Section 3.8(b), as such a~noiult may otherwise be adjusted wider the teens of this Agreement. (i) Additional hiitial Notes under Amended and Restated Contract. Upon approval of this Amended and Resiated Contract, tl~e Authority also approved issuance of Initial I`TOtes (designated as the $6, 650, 000 Taxable Tax Increment Revenue Note, Series 2007A, or the "Series 2007A Note "), under the temps of this Section, ill a principal amow7t equal to the balance of Public Redevelopment Costs incurred. to date by Redeveloper ill excess of the net amount to be disbursed from proceeds of the Series 2007 Bonds, subject to the maximwn principal a3nowlt of Initial Notes wider Section 3.8(b} as such amount may otherwise be adjusted under the terms of this Agreement. The Authority acknowledges that, iii sizing the Series 2007A Note, the Authority actually deducted the principal amount of the Series 2007 Bonds (rather than tJ~e r2et proceeds) from 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 pr°incipal amount of $6, 995, 688 (assuming certification of eligible costs). TJ~e Authority ack,~.c~~~l2dges that ~lpon Redeveloper's request, the Authority will issue additional Initial Notes in the principal amount of $345, 688, together with arty other amount that rrzay be available because of further adjustment undei^ Section 3, 9, and subject to all other terms and conditions of this Agreement. 5. The Contract remains in full force and effect a11d is not modified except as expressly provided herein. LN WITNESS WI-IEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Redeveloper has caused this Agreement to be duly executed in its name alld behalf on or as of the date first above written. STATE OF ivu'~'VI LS®T A ~ SS. COUNTY OF ANOKA ) The foregoing ilistnunent was acl~lowledged before me this ~ day of ~.~~-~-..- , 2008, by ~- ~--~ '~=- ~ ~`°-- ands-~~~« u' p,; the President and Executive Director of the Columbia Ideights Econo~r,ic LDevelopinent Authority, a public body politic and corporate, on behalf of the Authority. ~~ '~~~ Notary ublic CHER°PL A. N ~ TARY PUBLlC - MENNE .- ' COS~MISStGN EXe'dRES-if31 S$ 4 CITY OF COLUMBIA Its Mayor- Gary ~'. Peterson By '~ e ~J Its City Manager-Waltei . Fehst STATE OF MINNESOTA } } SS. COUNTY OF ANOKA } Tl~e foregoing instriunent was acknowledged before me this ~ day of ~t , 20~a, by Gary L. Peterson and Walter 1?. Fel.st, the Mayor an_d City Manager of the City of Columbia Heights, a Minnesota muiucipal corporation, on behalf of the City. ~~ Notary Pull is CNEi~YLla. "'KEF~° ~JTA[t~! PI;SLdC - ft~tIVPdES~ "± COgulPtiiSSiC}Pl EXPIRES-~/31/2Qt 2 HUSET PARK DEVELOPMENT CORPORATION By President and Chief Executive Officer STATE OF MINNCSOTA ) ) SS. COUNTY O ''~' ~`~ r~ ) The foregoing instrument was acknowledged before me this ~ day of ~° ~~''C ~~,$8~-~y $radley J. Schafer, the President and Chief Executive Officer of Huset Park evelopment Corporation, a Mimlesota corporation, on behalf of the corporation. r t` ~ ~....-- ~i - r,~ ..~ Notary P Y ~c 6 CONSEhIT BY ASSIGI`dEE The undersigned, as assignee of certain rights of Redeveloper under the attached Amended and Restated Contract far Private Redevelopment (the "Amended Contract"), hereby consent to all ~ t~. terms of the Amended Contract; provided that nothing in this consent will alter or affect the rights of undersigned under the Agreement of Purchase and Sale (Finished Lots) between The Ryland Group, Ilic. anal Redeveloper dated April 18, 2005, as amended. TI-IE RYLAND By Its STATE OF MINNESOTA ) } SS. COUNTY OF ~ ~ ;~~, } ~ROUP, INC. t` % The foregoing instrument ~uas a,~l~~owledged before me this ~~ ~ay of ,. -~t~~; 2008 by 4Jt ~t:.~~Gt~.1% ~ . ,G°c~~ ~e a ~)'~:..~~:(.-~ and of the Ryland Group, Inc., a Marzd corporation, on behalf of the corporation. ,_ - ~,~ -~~^~.r.N~ Notary~P blic /~;~"~, rt t~ x tvota~; F'u~iir,-ARinnssots ~'• ~,„ ~^`' xev ~,ommiss~an Fxcira, Jan .61, 2016 rgM.MSa~~xx.~+v«hM. 7 CONSENT BY ASSIGNEE The undersigned, as assignee of certain rights of Redeveloper under the attached Amended and Restated Contract for Private Redevelopment (the "Amended Contract"), hereby consent to all terms of the Amended Contract. PA By Its STATE OF MIh1NESOTA } SS. COUNTY OF ~ ~ - ~> } hi ~~ f ? ' ~t`~'-~ `~ d The foregoin instrulizent was ~clcriow ~~h.g b the / ~ ~ ~ `~ ° ay o ~ , _ 5 s , -dged before ~~le t ~~ of Parlcview Homes, LLC, a Minnesota y ~<. , limited liabili omp , on behalf of th camp y. ' ~ ,y ~r ~., ~d a' d~ f / f N P' lic _.. 8