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THIRD AMENDMENT TO
AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT
THIS AGREEMENT, made on or as of the 28th day of September, 2009, 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"), the CITY OF COLUMBIA HEIGHTS, a Minnesota municipal corporation (the "City"}
and HUSET PARK DEVELOPMENT CORPORATION, a Minnesota corporation (the
"Redeveloper").
WIT`NESSETH:
WHEREAS, the parties hereto entered into that certain Amended and Restated Contract
for Private Redevelopment dated as of August 1, 2007, as amended by a First Amendment
thereto dated as of June 16, 2008, as further amended by a Second Amendment thereto dated as
of February 9, 2009 (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 and extension. of the so-called five-year rule
under Minnesota Statutes, Section 469.1.763, subd. 3 as amended by Minnesota Laws 2009,
Chapter 88, Article 5, Section 8;
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. Section 4.3 of the Contract is modified as follows (italicized language shows
re v'1s1on):
Section 4.3. Completion of Cons±ruction. (a) Subject to uTnavoidabie 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: 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 IB, including roads, and at least 80
percent of required number of housing units for Phase IB, by
October 31, 2011.
Phase II: 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 June 30, 2011.
Redeveloper must substantially complete all internal site improvements,
including roads, together with at least 80 percent of required number of
housing units for Phase IIB, by April 30, 2013.
Phase III: 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 30, 2011; complete by
December 30, 2013.
Phase IIIB: Commence by June 30, 2013; complete by June 30, 2014.
Phase IIIC: Commence by December 31, 2014; complete by
December 31, 201.6.
2. Section 31(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 portion. thereof retained and
constructed by Redeveloper) at price less than the following:
$ 22, 500 per townhome (As amended August 25, 2009)
$ 18,000 per condominium or cooperative unit
$300,000 for the commercial portion of Phase III
$10,000 per senior rental unit (as amended June 16, 2008)
The above amounts are payable at closing on any such Transfer, provided that if the Subdeveloper
undertakes 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 incurred. In addition, each Subdeveloper shall pay to the Redeveloper at closing on such
land sale the net present val,~e of protected Tax increment from the transferred Parcel (calculated as
described in Section 3.8(b) hereof). Upon such payment, the Authority shall issue the Initial Nate
for such. amount, subject to all the terms and conditions of Section 3.8.
3. Section 3.8(e) of the Contract is modified as follows: (italicized language shows the
revision):
(e) Authorization and Delivery. Each Initial Note will be issued in substantially the
form set forth in the Authorizing Resolution attached as Schedule D. Each Authorizing Resolution
will be approved upon mutual determination by the Authority and Redeveloper of the principal
amounts of and payment schedule for each Initial Note in accordance with the terms of this Section..
The obligation to deliver each Initial Note is conditioned upon (i) the Redeveloper having delivered
to the Authority an investment letter for the Initial. Note in a form reasonably satisfactory to the
Authority; and (ii) the Redeveloper having delivered to the Authority, and the Authority having
accepted, certification of Public Redevelopment Costs in accordance with paragraph (d) in at
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least the principal amount of the Initial Note, or the Redeveloper having satisfied the conditions
of paragraph (f) below; and (iii) there being no uncured Event of Default by Redeveloper under
this Agreement with respect to the relevant Phase. Notwithstanding anything to the contrary in
this Agreement, if the conditions for delivery of the any Initial Note are not met by January 1, 201 S,
which is ten years after the date of certification of the TIF District by the County, the Redeveloper's
rights and interest to receive such Initial Note terminate.
4. The Contract remains in full force and effect and is not modified except as
expressly provided herein.
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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 E~O~IOMIC
DEVELOPMENT AUTH®RITY
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Its ExecutivC Director, Walter R. Fehst
S"fA"1'E OF MINNESOTA )
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COIJNT~' OF ANOKA )
~... ~'he foregoing instrument was acknowledged before me this .'~ day of
y ,~ ~ N'~~'r-. ~ c^ <ti-e-. and Walter R. Fehst, the President
and Executive hector of the Columbia Heights Economic Development Authority, a public
body politic and. corporate, on behalf of the Authority.
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CITY OF COLUMBIA HEIGHTS
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Its Mayor Gary L. Peterson
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Its City Manager, Walter R. Fehst
STATE OF MINNESOTA )
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COUNTY OF ANOKA )
The foregoin~~r~rment was acknowledged before me this `~ day of
a4~-~-~..~.-~~-~--~, , by Gary Peterson and Walter R. Fehst, the Mayor anal City Manager
of the City of Columbia Heights, a Minnesota municipal corporation, on behalf of the City.
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HUSET PARK DEVELOPMENT
CORPORATION
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President and Chief Executive Officer
STATE OF MINNESOTA )
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COUNTY O ~ _ ~f a' )
he foregoing instrument was acknowledged before me this day of
=, 2009 by Bradley J. Schafer, the President and Chief Executive Officer of
Huset Park Development Corporation, a Min ration.
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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; 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, Inc. and Redeveloper dated April 18, 2005, as amended.
THE RYLAND GROUP, INC.
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S I'AT>/ OF MINNESOTA )
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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.
PARKVIEW HOMES, LLC
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CONSENT TO THIRD AMENDMENT TO AMENDED AND
RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT
BNC National Bank, a national banking association (°°Lender°°), mortgagee under that certain
Mortgage and Security Agreement and Fixture Financing Statement given by Huset Park
Development Corporation, a Minnesota carporation, dated April 18, 2005, recorded April 27,
2005, as Document No. 482622.007 with the Office of the Anoka County Registrar of Titles, and
recorded April 27, 2005 as Document No. 1974721.003 in the Office of the Anoka County
Recorder, as amended by Amendment to Mortgage dated April 29, 2005, recorded August 8,
2005 as Document No. 484002.007 in the Office of the Anoka County Registrar of Titles and
recorded August 8, 2005 as Document No. 1977285.008 in the Office of the Anoka County
Recorder, Second Amendment to Mortgage dated May 24, 2005, recorded June 5, 2008 in the
Office of the Anoka County Registrar of Titles as Document No. 495283.001, and with the
Anoka County Recorder on June 5, 2008 as Document No. 2001051.001, Third Amendment to
Mortgage dated June 1, 2005, recorded June 5, 2008 in the Office of the Anoka County Registrar
of Titles as Document No. 495283.002 and on June 5, 2008 in the Office of the Anoka County
Recorder as Document No. 2001051.002, Fourth Amendment to Mortgage dated July 12, 2006,
recorded June 5, 2008 in the Office of the Anoka County Registrar of Titles as Document No.
4v~~~i tit'i'~ anc~ ttn _inne ~i i~(iR 7n the flffiirP of the /~nnka f`namty t°~PC'nrriPr ac i ync~nmPnt i\in
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2001051.003, and Fifth Amendment to Mortgage dated December 29, 2008, recorded March 6,
2009 iii the Office of the Anoka County Registrar of Titles as Document ivo. 497500.004 and on
March 6, 2009 in the Office of the Anoka County Recorder as Document No. 2005905.004
(collectively, the '"Mortgage"}, hereby consents to the Third Amendment to Amended and
Restated Contract for Private Redevelopment dated September 28, 2009, by and among the
Columbia Heights Economic Development Authority, Columbia Heights, Minnesota, the City of
Columbia Heights, and Huset Park Development Corporation.
(Signatures on next page)
LENDER:
Dated: ~ ~~r,,, , 2010
STATE OF MINNESOTA }
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COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of `~c~b ,~ ,
2010, by Brian K. ~%Vhitemarsh, the Executive Vice President o,~BNC National Bank, a na Tonal
banking association, on behalf of the association.
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My`Gommission Expires Jenuary 31, 2013
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