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HomeMy WebLinkAbout20180326_EDA_PacketECONOMIC DEVELOPMENT AUTHORITY AGENDA March 26, 2018 6 :0 pry City Hall Conference Room 1 59040 th Avenue NE Columbia Heights, MN 55421 1. Call to Order 2. Roll Call 3. Pledge of Allegiance 4. Oath of Office; Gerry Herringer BUSINESS ITEMS 5. First Amendment to the Purchase Agreement for 4201 Jefferson Street NE — Resolution 2018 -05 Motion: Move to waive the reading of Resolution 2018 -05, there being ample copies available to the public. Motion: Move to adopt Resolution 2018 -05, a resolution approving a first amendment of a purchase agreement between the Columbia Heights Economic Development Authority and Home Detail, Inc. 6. First Amendment to the Purchase Agreement for 4641 Polk Street NE — Resolution 2018 -06 Motion: Move to waive the reading of Resolution 2018 -06, there being ample copies available to the public. Motion: Move to adopt Resolution 2018 -06, a resolution approving a first amendment of a purchase agreement between the Columbia Heights Economic Development Authority and Home Detail, Inc. 7. Adjourn OTHER BUSINESS The next regular EDA meeting will be April 2nd, 2018 at City Hall. OATH OF COMMISSIONER OF COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY COLUMBIA HEIGHTS, MINNESOTA I, Gerry Herringer, do solemnly swear that I will support the Constitution of the United States of America, the Constitution of the State of Minnesota, and will faithfully discharge the duties of the office of Commissioner of the Columbia Heights Economic Development Authority, Columbia Heights, Minnesota, according to the law and to the best of my judgement and ability, so help me God. I do further swear that I am, and was at the time of my appointment, a resident of Columbia Heights, Minnesota. (s) Subscribed and sworn before me this day of , (s) Notary Public My Commission Expires: 0 � AGENDA SECTION BUSINESS ITEM ITEM NO. 5 MEETING DATE MARCH 26, 2018 CITY OF COLUMBIA HEIGHTS - ECONOMIC DEVELOPMENT AUTHORITY ITEM: First Amendment to the Purchase Agreement for 4201 Jefferson Street NE DEPARTMENT: Community Development CITY MANAGER'S APPROVAL: BY /DATE: Keith M. Dahl, March 19, 2018 BY /DATE: r BACKGROUND: On December 4, 2017, the Columbia Heights Economic Development Authority (the "EDA ") approved Resolution 2017 -31, a resolution which approved the Purchase and Redevelopment Agreement with Home Detail, Inc. (the "Agreement ") for the acquisition of 4201 Jefferson street NE, Columbia Heights, MN (the "Subject Property "). Pursuant to the Agreement, the "Date of Closing" was required to be no later than February 4, 2018 (60 days from approval date of the Agreement). However, Home Detail, Inc. was unable to satisfy the aforementioned provision in said Agreement, and has requested a 30 day extension to the "Date of Closing ". Therefore, please find attached for approval consideration the First Amendment to the Agreement which extends the "Date of Closing" to April 25, 2018 (30 days from the date of this First Amendment). Also please note, if Home Detail, Inc. is unable to purchase the property within the specified extension period, the Agreement will be rendered null and void, and EDA staff will begin to accept other applications from Minnesota License Home Builders for the purchase of the Subject Property. Furthermore, it should also be noted that if this happens, the earnest money deposited in the amount of $2,000 by Home Detail, Inc. is non- refundable and will not be reimbursed. STAFF RECOMMENDATION: Staff recommends approval of Resolution 2018 -05 as presented. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2018 -05, there being ample copies available to the public. Motion: Move to adopt Resolution 2018 -05, a resolution approving a first amendment of a purchase agreement between the Columbia Heights Economic Development Authority and Home Detail, Inc. ATTACHMENTS: 1. Resolution 2018 -05 (1 Page) 2. First Amendment to Purchase Agreement (2 Pages) City of Columbia Heights - EDA Letter RESOLUTION NO. 2018 -05 RESOLUTION APPROVING A FIRST AMENDMENT OF A PURCHASE AGREEMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND HOME DETAIL, INC. BE IT RESOLVED BY the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development Authority (the "Authority ") as follows: SECTION 1. RECITALS. 1.01. The Authority currently administers its Single Family Home Lot Sales Program within the City of Columbia Heights (the "City "), pursuant to Minnesota Statutes, Sections 469.090 to 469.1081, as amended. 1.02. Pursuant to a duly noticed public hearing on the sale of Authority property, the Authority and Home Detail, Inc. (the "Buyer ") executed a Purchase Agreement, dated as of December 4, 2017 (the "Agreement "), providing for the conveyance by the Authority to the Seller of certain property located at 4201 Jefferson Street NE within the City, legally described as follows: Lot 16, Block 32, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota (the "Property "). 1.03. The parties have negotiated and propose to execute a First Amendment to the Agreement (the "First Amendment ") to extend the deadline for the conveyance of the Property. SECTION 2. FIRST AMENDMENT APPROVED. 2.01. The First Amendment as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the First Amendment by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the First Amendment and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority, its obligations thereunder. 2.03. Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 26th day of March, 2018 Offered by: Seconded by: Roll Call: President Attest Assistant Secretary Resolution 2018 -05 FIRST AMENDMENT TO PURCHASE AGREEMENT 4201 Jefferson Street NE, Columbia Heights, Minnesota This First Amendment to Purchase Agreement ( "Amendment ") is made this day of March, 2018 by and between Columbia Heights Economic Development Authority, a Minnesota public body corporate and politic under the laws of Minnesota (the "Seller "), and Home Detail, Inc., a Minnesota corporation (the "Buyer "). WHEREAS, the Seller and the Buyer entered into that certain Purchase Agreement dated as of December 4, 2017 (the "Agreement ") providing for the conveyance by the Seller to the Buyer of certain property at 4201 Jefferson Street NE located in the City of Columbia Heights, Anoka County, Minnesota and legally described as follows: Lot 16, Block 32, Columbia Heights Annex to Minneapolis, Anoka County, Minnesota (the "Property"); and WHEREAS, due to unanticipated delays, the parties have determined to extend the deadline for closing on the conveyance of the Property. 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. Amendment to Paragraph 4 of the Agreement. Paragraph 4 of the Agreement is amended as follows: Price and Terms. The price for the Property is $35,000 ( "Purchase Price ") which Buyer shall pay as follows: nonrefundable earnest money of $2,000 by check, receipt of which is hereby acknowledged by Seller. The balance of the Purchase Price must be paid by certified check or wire transfer on the Date of Closing. The "Date of Closing" shall be no later than April 25, 2018. 2. Miscellaneous. Except as amended by this Amendment, the Agreement shall remain in full force and effect. (Remainder of this page intentionally left blank.) 517902v4 MNI CL205 -69 IN WITNESS WHEREOF, the parties have executed this First Amendment to Purchase Agreement as of the date written above. SELLER COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By: Its: President By: Its: Executive Director BUYER HOME DETAIL, INC. By: Its: 517902v4 MNI CL205 -69 0 � AGENDA SECTION BUSINESS ITEMS ITEM NO. 6 MEETING DATE MARCH 26, 2018 CITY OF COLUMBIA HEIGHTS - ECONOMIC DEVELOPMENT AUTHORITY ITEM: First Amendment to the Purchase Agreement for 4641 Polk Street NE DEPARTMENT: Community Development CITY MANAGER'S APPROVAL: BY /DATE: Keith M. Dahl, March 19, 2018 BY /DATE: r BACKGROUND: On December 4, 2017, the Columbia Heights Economic Development Authority (the "EDA ") approved Resolution 2017 -32, a resolution which approved the Purchase and Redevelopment Agreement with Home Detail, Inc. (the "Agreement ") for the acquisition of 4641 Polk Street NE, Columbia Heights, MN (the "Subject Property "). Pursuant to the Agreement, the "Date of Closing" was required to be no later than February 4, 2018 (60 days from approval date of the Agreement). However, Home Detail, Inc. was unable to satisfy the aforementioned provision in said Agreement, and has requested a 30 day extension to the "Date of Closing ". Therefore, please find attached for approval consideration the First Amendment to the Agreement which extends the "Date of Closing" to April 25, 2018 (30 days from the date of this First Amendment). Also please note, if Home Detail, Inc. is unable to purchase the property within the specified extension period, the Agreement will be rendered null and void, and EDA staff will begin to accept other applications from Minnesota License Home Builders for the purchase of the Subject Property. Furthermore, it should also be noted that if this happens, the earnest money deposited in the amount of $2,000 by Home Detail, Inc. is non- refundable and will not be reimbursed. STAFF RECOMMENDATION: Staff recommends approval of Resolution 2018 -06 as presented. RECOMMENDED MOTION(S): Motion: Move to waive the reading of Resolution 2018 -06, there being ample copies available to the public. Motion: Move to adopt Resolution 2018 -06, a resolution approving a first amendment of a purchase agreement between the Columbia Heights Economic Development Authority and Home Detail, Inc. ATTACHMENTS: 1. Resolution 2018 -06 (1 Page) 2. First Amendment to Purchase Agreement (2 Pages) City of Columbia Heights - EDA Letter RESOLUTION NO. 2018 -06 RESOLUTION APPROVING A FIRST AMENDMENT OF A PURCHASE AGREEMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND HOME DETAIL, INC. BE IT RESOLVED BY the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development Authority (the "Authority ") as follows: SECTION 1. RECITALS. 1.01. The Authority currently administers its Single Family Home Lot Sales Program within the City of Columbia Heights (the "City "), pursuant to Minnesota Statutes, Sections 469.090 to 469.1081, as amended. 1.02. Pursuant to a duly noticed public hearing on the sale of Authority property, the Authority and Home Detail, Inc. (the "Buyer ") executed a Purchase Agreement, dated as of December 4, 2017 (the "Agreement "), providing for the conveyance by the Authority to the Seller of certain property located at 4641 Polk Street NE within the City, legally described as follows: That Part of Lot 23 lying north of the south 20 feet of said Lot 23, and Lot 24, in Block 1, Sheffield's Second Subdivision, Anoka County, Minnesota according to the recorded plat thereof, and situate in Anoka County, Minnesota (the "Property "). 1.03. The parties have negotiated and propose to execute a First Amendment to the Agreement (the "First Amendment ") to extend the deadline for the conveyance of the Property. SECTION 2. FIRST AMENDMENT APPROVED. 2.01. The First Amendment as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the First Amendment by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the First Amendment and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority, its obligations thereunder. 2.03. Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. ORDER OF ECONOMIC DEVELOPMENT AUTHORITY Passed this 26th day of March, 2018 Offered by: Seconded by: Roll Call: President Attest Assistant Secretary Resolution 2018 -06 FIRST AMENDMENT TO PURCHASE AGREEMENT 4641 Polk Street NE, Columbia Heights, Minnesota This First Amendment to Purchase Agreement ( "Amendment ") is made this day of March, 2018 by and between Columbia Heights Economic Development Authority, a Minnesota public body corporate and politic under the laws of Minnesota (the "Seller "), and HOME DETAIL, INC., a Minnesota corporation (the "Buyer "). WHEREAS, the Seller and the Buyer entered into that certain Purchase Agreement dated as of December 4, 2017 (the "Agreement ") providing for the conveyance by the Seller to the Buyer of certain property at 4641 Polk Street NE located in the City of Columbia Heights, Anoka County, Minnesota and legally described as follows: That Part of Lot 23 lying north of the south 20 feet of said Lot 23, and Lot 24, in Block 1, Sheffield's Second Subdivision, Anoka County, Minnesota according to the recorded plat thereof, and situate in Anoka County, Minnesota (the "Property"); and WHEREAS, due to unanticipated delays, the parties have determined to extend the deadline for closing on the conveyance of the Property. 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. Amendment to Paragrqph 4 of the Agreement. Paragraph 7 of the Agreement is amended as follows: Price and Terms. The price for the Property is $35,000 ( "Purchase Price ") which Buyer shall pay as follows: nonrefundable earnest money of $2,000 by check, receipt of which is hereby acknowledged by Seller. The balance of the Purchase Price must be paid by certified check or wire transfer on the Date of Closing. The "Date of Closing" shall be no later than April 25, 2018. 2. Miscellaneous. Except as amended by this Amendment, the Agreement shall remain in full force and effect. (Remainder of this page intentionally left blank.) 517901 v4 MNI CL205 -70 IN WITNESS WHEREOF, the parties have executed this First Amendment to Purchase Agreement as of the date written above. SELLER COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By: Its: President By: Its: Executive Director BUYER HOME DETAIL, INC. By: Its: 517901 v4 MNI CL205 -70