HomeMy WebLinkAboutEDA RES 2016-10COLUMBIA HEIGHTS UCONO1 IC DEVELOPMENT AUTHORITY
RESOLUTION NO. 2016-10
RESOLUTION APPROVING THE EXERCISE OF THE EDA'S RIGHT
OF REVERTER IN CONNECTION WITH A PARCEL IN THE CITY-
WIDE SCATTERED SITE HOUSINGTAX INCREMENT FINANCING
DISTRICT WITHIN THE CENTRAL BUSINESS DISTRICT
REDEVELOPMENT PROJECT OF THE CITY OF COLUMBIA
IIEIGHTs,
WHEREAS, on October 10, 2011, the City of Columbia Heights (the "City") approved creation
by the Columbia I leights Economic Developilient Authority ("E'DA") of the City-Wide Scattered Site
Housing Tax Increment Financing District (the "TIE District") within its Central Business District
Redevelopment Project (the "Project"), by approval of a tax increment financing plan (the "TIE Plan) for
the TIF District-, and
WHEREAS, the EDA and Tirnbercraft Enterprises, Inc. (the "Purchaser-) entered into a Purchase
and Redevelopment Agreement dated January 31, 2014 (the "Contract") for conveyance to the Purchaser
and development by the Purchaser of a parcel within the TIF District located at 4303 Reservoir Boulevard
NE in the City and described as follows:
Lot 4, Block 4, Auditor's Subdivision of Walton's Second Subdivision of Reservoir Hills, Anoka
County, Minliesota
referred to as the "Subject Parcel;" and
WliEREAS, pursuant to the Contract, the Purchaser was required to complete construction of
certain Minimum Improvements (as defined in the Contract) within one year of the date of sale of the
Subject Parcel, or by February 14, 2015, and any failure to complete such construction constitutes an
event of default under the Contract, and
WHEREAS, paragraph 15 of the Conti-act provides that upon 30 days' notice to the Purchaser of
an event of default due to failure to construct the Minimum Improvements, the EDA may exercise its
right to re-enter and take possession of the Subject Parcc@ and to revest in the EDA the fee title to the
Subject Parcel; and
WHEREAS, as of the date hereof, the Purchaser has not commenced construction of the
Minimurn Improvements, and has been advised that such failure is an event of default pursuant to the
Contract through the receipt of a notice of default delivered by EDA staff on March 28, 2016; and
WHEREAS, the EDA has determined that it is in the best interest of the City to exercise its
statutory and contractual right of reverter, as permitted under Minnesota Statutes, Sections 469.090 to
469.1 {1S 1 (tile "EDA Act"), particularly Section 469.105, subd, 5, and under paragraph 15 of the Contract.
NOW THEREFORE, BE IT RESOLVED by the board of commissioners of the EDA as follows:
I . The EDA approves the exercise of its right of reverter pursuant to the Contract and EDA
Act on Julie 16. 2016, if building plans are not submitted for review by 4 pm on Julie 15, 2016.
4789860 CU05-49
2. EDA staff are authorized and directed to work with EDA legal counsel to take such
actions are required to perfect its right of reverter, including without limitation the drafting and filing of
any proceedings in district court and, if determined to be necessary, the removal of the Subject Parcel
froni the TIP District,
ADOPTED: --NAY!_, 2016
478986v 1 Ct20549
SecietarylTreasur