HomeMy WebLinkAboutContract No. 2015-2687.07SECOND AMENDED AND RESTATED
CONTRACT
ME
PRIVATEREDENIELOPMENT
By and Between
courRACTNO: 2()15-007
DATE ::. 0/17/15
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENTAUTHORM'
ME
CITY OF (r'OLUNIBIA HEIGHTS
M
COLUNIBIA HEIGHTS LEASED HOUSING ASSOCIATES It, LLLP
Dated as of- October 30, 2015
This docurnent m1as drafted by:
KENNEDY & GRAVEN, CIrlartered
470 U.S. Bank Plaza
200 South Sixth Street
Minncap,)Iis, Minnesota 55402
Telephone: (612) 337-9300
4689620 MM (A .205 23
TABLE OF ENTS
PREAMBI-E
ARTICLE I
Definifions
Section LA Definitions,...- ... -- ............... ...... ..............
ARTICLE If
Representations and Warranties
Section 2, L Representations and Covenants by the Authority and City 6
Section 2',2, Representations and Warranties by the Redeveloper-, ........
AR,rici.,E III
Remnant Parcel; I`inancing,,
Section 3A. Status of the Remnarrt Parcel ...........
Section 3. 2, Envirom-nental Undertakings- ... 8
Section 3.3. Planning Contract............. ......... ............................... ........ 8
Section 3.4. Assignment of Note ... ....... 8
Section 3.5, Series 2007 Bonds .,... d 8
Section 3.6. Payment of' Authority Costs.......'.. .... ......
Section 3,7. Business Subsidy . ... - ......
ARTICLE IV
onstruction of Minimum Improvements
Section 4. 1, COnstruction ofMinimurn Improvements
Section 4.2. Construction Plans ............ 10
Section 4.3. Completion of ( I
onstruction-......, ... .......
Section 4.4. Certificate of CornpletWil
Section 4.5. Records ....... ........ 12
ARTICLE V
InSUrance
Section 5, L Insurance —, ... ........ ...... .................... ........ 13
Section 5, 2. Suhordinatilon ... 14
Section 5. 3, Qualifications .. ....... ........... ........... ......... 14
ARJIICI-17 VI
Tax Incrernent; Taxes
468962v3 MNI CL20523
Review of Taxes . ............ ........
i
ARTICIA" VII
Financing
Section 7, 1, Mortgage Financing— ... ................... -- ........ ......... ...... -- ........ —... 16
ARTICLE Vill
Prohibitions Against Assignirient andTransfier;
Indemnification
Section 8, 1, Representation as to ......... ......... -- ............ 17
Section Q. Prohibition Against Redeveloper's Transfer of Property and
Assignment of Agreement ...... -- ...... --- ........ __- ................................. --- 17
Section 83. Release and Indemnification Covenants, ... ......................... 8
ARTICI-F IX
Events ol"DeCault
Section 9,1, Events ol'Default Del"ned
Section 9.2, Remedies on Default,, ............ ...... ......... ---20
Section 9.3, No Remedy ....... ....... .... -.-20
Section 9,4, NoAdidiflonal Wajvcr Implied by One Wa iver......... ..... ..
ARTICLE X
Additional Provision,,,
Section 10.1., Conflict of Interests," Authority and City Representatives
468962y.'; NINI CL205 23 H
Not Individually Liable ... ........... ........... .... --.22
Section I O. 2, Equal Employment Opportinjity.__ ... .................... ...... -------22
Section 103, Restilctionson Use . — .... --- ............... -- ... --- ....... ....... 22
Section 10,4. Provisions Not Merged With Feed ....... '..... ............................... .... __"-22
Section 11I,5® Titles of Articles and Sections ........ .... --22
Section 1 O. 6. Notices and Den'iands ... ......... .......... .......... 22
Section 10.7. Counterparts.. . ........ ....... ......
Section 10. 8, A men din en1- — — — . . . - . ........ ....... ......... ....... .... 23
Section 10,9` Authority or City Approvals ........... .... ---23
Section I O. I Termination 2 3
1SCHEDULE A Description of Remnant Parcel
SCIIEDULE 13 Form of Cenification cal '*("',ompletion
468962y.'; NINI CL205 23 H
SECOND AMENDED AND RESTATED C'ONTRACTFOR PRIN,"ATE
IZE"DEVELOPMENT
ITHS AGREEMEXY, inade on or as of the 30th day of' October, 2015, by and between
COLUMBIA HEIGHTS FCONOMK7 DEEVELOPMENT AUTHORITY, as pulflic bo(],y corporate
and politic (the "Authority"). established pursuant to Minnesota Slaftnes. Sections 469,090, to
1469,1081 (hereinafier referred to as the "Act"). the CH"Y ( ) F(1101A IMBIA I IEIGIITS® a Minnesota
municipal corporation (the .'ltd") and COLUMBIA HEK3111"S LEASED HOUSIM";
ASSOCIATES 11, LLIT, a Minnesota limited liability limited partnership (the "Redeveloper"),
W FT' N ES S ETH .-
WHEREAS, the ALIthority was created purm.vant to the Act and was authorized to transact
busincss and exercise its powers by a resolution of` the City Council of the City ol'ColumbiaHeights ("City"), and
WHEREAS, the City and the Authority (as successor to the Housing and Redevelopment
Autfic:wity of Columbia HeightS, Mn"'C80ta) have undertaken aprogriarn to protnole redevelopment
of land that is characterized by blight and blighting factors within the City, and in this connection
the Authority administers a redevelop nient project known as, the Downtown (, IBD Redcvelop rnentProject ("[)roject-) I'Mrsuant to Minnesota Statutes, Sections 469,001 to 469,047 (the 'TIRA Act"'),-
and
WHERFAS, PUI'Aiant to the Act and the HRA Act, the Authority is authorized to acquire
real properly, or interests therein, and to undertake certain activities tca facilitate the redevelopment
of real Property by private enterprise; and
IWHEREAS, within the Project, the Cityity and Authority created the Huset Park Area Tax
Increment Financing District ("Tff Distriel") in order to facilitate redevelopment (:& certain
property in the Prcject; and
WHEREAS, the Authority and fluset Park Development Corporation (the "Original
Developer") previously entered into a Colitract for Private Redevelopment dated as of October 25,
2004, amended and restated in its entirety by an Amended and Restated C"Ontract ft.m- Private
Redevelopment dated as of ALIgUSI 1, 2007, as amended by as First Arnendirlent thereto dated as of
June 16, 2008, a Second Amendment thereto dated as of February 9, 2009, as Third Amendment
thereto dated as of September 28, 2009 (Subsequent to which ANC` National Bank ("BN( ' ' 'j
succeeded in interest to the Original Developer), as Fourth Arnendn'rent thereto dated as of'
November 21, 2011 1, as Filth Amendment thereto dated as of'April 2013, and as Sixth Arnendment,
thereto dated as of June 2, 2014 (together, the '*Original Contract") regarding redevelopment of the
property described in Schedule A heret(r), designated as the Remnant Par-cc]. along with other
properly within the'l"IF District (all such property, the "Redeveloppert Properly"'), and
WHEREAS, the Redeveloper has proposed and the partles to the Original Contract have
agreed to the COTIStflldlon by Redeveloper ofccilain housing improvements on the Remnant Parcel,
46062 3 NIN 1 (1,2052 )
Subject to assignment of' the Original Contract to the Redeveloper, as to the Renunant Parcel and
certain other •ondiI4,')ns as niore fiully provided her6n: and
WHEREAS, this Agreement is intcr)(led to supersede and relflace the Original ( 'ontract in
all respects as to the Rtn'rinant ParccL and
WHERI,, AS, 'the Authority believes that the redevelopment of the Rermiant Parcel pUrsuant
to this Agreement, and fulfillment generally of dais A recment, are in the vital all(] best infereste, of
the C` ity and the health, safety, morals, and welfare of its residents, and in accord with the public
purj-..)()ses and provisiorls ()f the applicable Staic and local laws and requirernerils under which the
Project has been undertaken and is being assisted,
NOW, THEREFORF', in consideration of the prern ses and the mutual obligations of the
parties hereto, each of thenj does hereby covenant and as '!,ree with the other as f6 lows:
68962 v 3 NI NI C1205 2 3 2'
Sedion LL Definitions. In this Agreenient, unless, a different inearring clearly appearsfi,(,)]Tl the Context
Act- nicans the 1,1'conoirk Devc]opnient ALIthority Act. Minnesota Statutes. Sections
469,090 to 4K1082,, as amended .
Affiliate'" means with respect to the Redeveloper (a) any corporation, paTinership,
corporation or other business entity or person controlling, controlled by, or under wineion control
with the Redeveloper, and (b) any successor to such party by merger, acquisition, reorganizati011 or
similar transaction involving all or substantially all of the assets of'such party (or such Affiliate).
For the purpose hereof the words -controlling", "controlled by" and "under cornmon control with"
shall nican, with respect to any corporation, pannersbip, corporation or other business, entity, the
oNviler-ship of' filly percent or niorc of the voting interests in such entity possession, directly or
indirectly, of the poNver to direct or czusc the direction of management policies of' such entity,
whether ownership of'voting securities or by contract or otherwise,
Agreernent" means this Amended and Restated Contract as the context requires, and as
the same may be firorn time to tinec modified, aniended., or supplemented.
Authority- ineans the Columbia Heights F'conornic Development AL11110fIty. or any
SUCCessol, 01. assign,
Authorhy Representative- means the 1"xecutivc Director of the Authority. or any person
designated by the Executive Director to act as the A UthOTity Representative fi,)r the' 'purposes of this
Agreement.
BNCI" means BN' National Bank, the successor, in interest to the Origirral Developer
under the OT girral Contract,
Business Day" rneans art.), day except as Saturday, Sunday, legal holiday, a day on which
the City is closed for business, or a day our which banking institutions in the City are authorized bylaworexecutiveordertoclose.
Business Subsidy Act" rileans Minnesota Statues, Sections 116.11,993 to 116J.995, as
arnended,
Certificate of Compietion" nieans the certification Provided to the Redeveloper, or the
purchaser of' any part .. parcel or unit of' the Rerrinant Parcel, pursuant to Section 4.4 of this
Agreement.
j y, means the City ofColuirnbia Heights, Minnesota,
4689620 NIM (1205 .23 3
CO11SIFLIC6011 PlarlS- 11jeallS the SpeCjfiCatior , , - Is (kmings and related docuirients to be
provided in connection with the construction work to be perfornied by the Redeveloper oil tile
Remnant Parcel which a) shall bc, as detailed as the plans, specifications, drawings and related
dOCUMen1S 'WhiCh are submitted to the appropriate building officials (-,)f the City, and (b) shall
include at least the following for each building, (1) site plan. (2) foundation plan; (3) basernem
plans; (4) floor plan for each floor; (5) cross sections of" each (lengtl'i and width) (6) elevations (all
sides,); (7) laridscape plan; and (8) sUCh Other IflallS Or SUPplemerflrS to the ft.)regoing plans as the
Authority may reasonably request to allow it to ascertain the nature and quality of the proposed
constrUdi0fl, work.
rneans tile, County ofAnoRa, Minnesota.
T 'vent of Default" means an action by a party described in Section 9.1 ofthis Agreement,
11RA Act" ineans Minnesota Statutes, Sections 469.001 to 469,047, as amended.
Holder" nicans the ovvner of a Mortgage,
Mininiuni Improvements mearis the construction oil the Remnant Parcel of'approximately
80 units of` senior rental housing.
Moilgage" niewis any mortgage made by the Redeveloper which is secured. in vdiole or in
part, with the Remnant Parcel and which is a permitted encumbrance pursuant to the provisions of
Article Fill of this Agreement.
Note" means the Taxable Tax Increment ReVCrAte Note, Series 2007, delivered bv the
ALIthOrity to the Original Developer in accordance with Section 3,8 of the Original C:onlract and
subsequently assiped to BBC ".
Original Contract- means file Contract Ibl• Private Redevelopment between the Authority
and the Original Developer dated as of October 25, 2004, as amended,
Redeveloper" rneans Columbia Heights Leased ffimsing Associates 11, LLLP or its
permitted successors and assigns.
Redevelopment Project" means the Authority's Downtown CBD RedevOopment Prqject,
Redevelopnient Property- mearis tae property subject to the Original Contract and
described therein on Schedule A,,of which the Remnant Parcel constitutes a part.
Redevelop ilient Plan" mearis the Authority's Redevelop rilent Plan for the Redevek.)pmant.
Project, as amended.
Remilan't Parcel" means the property so described on ScfledWe A,
4684620 MMCL20523 4
Serics 2007 Bonds- has the meaning provided in Section 3,5.
Stale"means the State of' Minnesota,
Tax Incremem- micians that portion cap the real property taxes which is paid with respect to
the RedevOopment Propeily and which is reinitted to the Authority as tax increment pursuant to the
Tax Increment Act. The term Tax Increment does not include any amounts retained by or payable
t() the Starte auditor under Section 469, 177, subd , I I of the Tax Increment Act, or any amounts
described In Section 469, 174, subd . 25, clauses (2) through (4) of the Tax Increrrient Act.
I , ax Increment 'i or Act" nicans the Tax Increment Financin , Act Mi erota
Statutes, Sections, 469,174 to 4K 17914, as amended.
J,
Tax Incremrreni Districc or. -TIF District" means the Authority's fluset Parl,', Area 'tax
fricreinent Firi,ancing F)istrict.
Tax Increment Plarl" or —1111 Plan" means the Authority's Tax Increment Financing Plan
f6r the TIF District, as approved by the Authority and City on October 25, 2004, and as it rilay beamendedftornlimetotime.
Tax ()fficial- rneans any County assessor. COLIMy auditor; or State board of
equalizaticiii. the cortinjissioner Of revenue of the State, or any State or federal court includin th
ate, UIX COLIM Of tbC StI
Termination Date" means the date the Authority receives the last insiallinent of "Fax
Increment from the County.
Transfer" has the iricaning set fbirlh in Section 8,2(a) hereof
Unavoidable Delays" means delays beyorld the reasonable control of the party seeking, tobeexcusedasaresultthereof' which are time direct result of war, terrorism, strikes, other labor
troubles, fire or other casualty to time MiniroUln Improvernients, litigation con,imenced by third
parties which, by injunction or other similar judicial action, directly results in delays, econoiriic
events beyond the control of the parties that materially reduce the marketability oil" Rv sale housing, including unusual increases in mortgage rates or economic recession, or acts of any federal, state or
local governmental unit (other than the Authority in exercising its nights under this Agreement)
which directly result in delays, Unavoidable Delays shall not inchide delays in the Redeveloper's
obtaining of pennits, or governmental approvals necessary to enable construction of' the Minimun)
Improvements by the dates such construction is required tinder Section 4.3 of this Agqviernent, unless
a) Developer has timely filed any application and rnaterials required by the City, fior such pennit or
approvals, and (b) the delay is beyond the reasoriable control ofthe Redeveloper.
4689620 MNI (T]?05-23 5
EjRfEjEnja!j2nLnd LVarranties
Section 2.1, RqpLq q Csonand .tsovenan. ..... . 1S ljheAuthor' gj t, J.1y (a) fl-w Aut ziI ty i s
an economic developrrient authority duty organized and existing under the laws of the. State, Under
the provisions of the Act and the HR. A Act, (lie Authority has the power trr enter into this
Agreement and carry out its obligations hereunden
b) 'nv, Authority and City -will use their best cfI6rt% to facilitate development of" the
Minimuin hni'm-ovements, Including but not linliteA to cooperati . ng with the ReM,eloper in obtaining
necessa,i-y administrative and land use approvals and coristniction an&or pemianent financing pumlallttoSection7.1 hereof
C) T'he activities of' the Authority are undertakem fbr the purpose of' fostering the
redevelopment erg' certain real property that is or was occupied primarily by substandard arid obsolete
buildings, which, will revitalize this portion of the Redevelopment Pro ect, increase tax base, and
increase housing and emploNment opportunities.
d) The City is a horne rule charter city duly organized and existing under the laws ofthe
State, and is as state public body under Section 469,041 of the HRA Act. Under the provisions of. its
charter and the I-IRA Act, the City has the power to enter into this Agreement and carry out itsobligationshereunder,
C) "I'lie City and ALA1101-ily have taken all actions neccssary to establish the TIF District as
a redevelopment district as defined in the 'I'll" Act., and the TIF Distriet has been duly certified by tile
Courity,
f) The ( 1 " ity and Authority will take no action, nor omit to take any action, regarding the
I'lf"District that materially impairs the collection or Payment of"Fax Increment.
g) As of the date of this Agreement, the Minimum Improvernents to be constructed on the
Renniant Parcel are allowed uses under the City zoning ordinance and are consistent with the City
Cornpreliensive Plari.
h) As cif` the date of this Agreerrient, the C'ity and Authority have completed all required
environmental review and determi tied that no further enviroin-nental review is required under the
Minnesota Environmental Policy Act, Minn. Stwat. Ch, I 16,D.
0) Neither the execution and delivery of this Agreement, the consunirriation of the
transactions contemplated hereby, nor the fulfilfinent of or compliance with the terms and
conditilons ofthis Agreement is prevented, limited by or conflicts with or results in a breach of, the
terrns, conditions or provisions ofeliarler or Statutory limitation or any indebtedri,ess, agreement or
instrument of whatever nature to which the City or Authority is now as party or by which it is
bound, or constitutes a default under any of the foregoing,
460620 MNJ (A 205 23 6
e) 'The Authi, wity shall promptly advise City, in writing of all litigation or Clairns affecting any
part of the Mininium linprovements,
Section 2.2. R 11 raftMg'er tallons and W'ar- i ies 1) tile RredCV(-j() r, The Recleveloper
represents and warrants that:
a) The Redeveloper is a limited liability limited partnership organized and in good
stariding under the laws of the State of' Minnesota, is not in violation of any provisions of' its
certificate of hirrited partnership or the imvs of the State, is duly authorized to transact business
within the State, has power to enter into this Agreement and has duly authorized the execunon,
delivery and perfortriaricL ofthis Agreement by proper action of its partners,
b) Upon acquisition of the Remnant Pareel, tile Redeveloper will construct, operate and
maintain the Mininiurn ImProvements in accordance with the terms of this Ageen,ient, the
Redevelopment Plan and all applicable local, state and federal laws and regulations (including, but
not firnited to, environincrital, zoning, building code and public health laws and regulations).
c) The Redeveloper will obtain, in a timely manner, all required la remits, licenses and
approvals, and will meet, in a timely inanner, all reqUirernents of' all applicable local, state and
federal hivvs and regulations, which roust be obtained or met before the Minimum Irnprovernents
ina_y be laNkAilly constructed.
d) Neither the executiol,i and delivery of this Agreernent, the consummation of the
transactions conternplated hereby, nor the fulfilli-nent of or compliance with the teens and
condilions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the
terms, conditions or, provisions of' any parinership or company restriction or any evidences of
indebtedness, agreement or instrument of whatever nature to which the Redeveloper is now a party
or by which it is bound, or constitutes as default under any of the foregoing,
e) The Redeveloper shall promptly advise t Iity in writing of all material litigation or
claims affecting any part of the Minimum: Iniprovements and all written coniplaints, and charges
made by any governmental authority materially affecting tile Minimum Improvements Or. Materially
affecting Redeveloper or its business which rnay delay or' require changes in constl-L]Cti011 Of the
Minimum Improvements.
4689620 MNI CL205-23 7'
Remnant ParEEI, FinancinI
Section 3.1 -Status of the Requiant Parcel. As Of the date of' this Agreement, the
Redeveloper has acquired the Remnain Parcel, which consists of tile real properly described in
Schedule A, from BNC', BNC has assigned the Original Contract to the Redeveloper, and the parties
hereto have executed this Agr-cernerit, w-hich super-cedes the Original Contract in all respects.
Section 32 Environmental (a) The Redeveloper acknowledges that the
Auth(;)rrty makes no representations or warranties as to the condition of the soils on the Rerrinarn
parc,Ll Or the fitness of the Remnant Parcel for construction of` the Minimurn Improvernents or any
other PLI1110SC for which the Redeveloper inay make use of such property, and that this Agreement
neither iMplieS any responsibility by the Authority or the City fbr- any contamination of the Reamant
Parcel nor imposes any obligation on such parties to participate in any, cleanup of the Reirinant Parcel.
The parties further acknowledge and agree that all environmental reinediation obligations imposed
pursuant to the, Original Contract have been fully satisfied.
b) WithOUt firnitirig its obligations under Section 8.3 of this Agreement, the Redeveloper
further agrees that it will indemnify, defend, arid hold harnfless the Author] ty, the City, and their-
governing body rnembers,, officers, and employees, from any, clairris or, actions arising out of the
presence, 1fany, of hazardous wastes or pollutants existing on or in the Remnant Parcel, untess and to
the extent that such hazardous wastes or Pollutants are present as a result ofthe actions Or orajissjojjs of
the i ndem nitees. Nothing it) this section will be construed to hmit or aftect any limitations on liability
of the City or Authority under State or tWeral law, including without limitation Minnesota Statutes
Sections 466.04 and 604.01
Section 3.3. Planin ' n2'Coiitract, TI)e Redeveloper shall pay any SAC and WAC tees art(] park
dedication tees in accordance with applicable City policies and ordinances, and agrrees to enter into
any planning contracts that may be required in connection with the Mililinum
Section 3A. "Assi&n.inent_ o ' f ' Note, (a) Pursuant to the Onginal Contract, the AuthorityissueditsTay, Increment Revenue, Note, Series 2007A, in the principal amount of $6,650,000, to the
Original Developer. and the Original Developer subsequently assigned the Note to BNC, The
Redeveloper agrees air(] acknowledges that the Note has been assigned to a separate entity Pursuant to
a separate contract, and that Redeveloper has no right to or interest in the Note.
Section 3.5. Series 2007 Bonds, (a) Pursuant to the Original Contract, the Authority
iSSUed its tax exempt 'Fax Increment Revenue Bonds, Series 2007 (Huset Park Area Redevelopment
Prqject), in the principal amount of $2,990,000 (the "Series 2007 Bonds"), Proceeds ofthe Series
2007 Bonds were used to reirriburse the Original Developer fi.)r a portion of the Public
Redeveloptnent Costs incurred by the Original Developer,
b) The Redeveloper rnakes the f'ollowing representations to the Authority mth respect
to the Series 2007 Bonds and any Refunding Bore k
468962 3 MNI ('1205-2. 8
1) 'The Redeveloper will take no action., and will not fail ft:) take air action, the
eff cl of which will be to cause,, the Series 2007 Bonds, or Refunding Bonds to be
determined to be as "pdvate activity bond" (as such temi is defined in Section 141 of the
Internal Revcriuc Code of 1986, as anlended (the "Code") and in applicable TreasuryRegulationsprornulgattic] pUrSUant to applicable prcsvisions Ofthe "ode (tire "Regulations")
2) The Redeveloper will take no acliorl,, and will not fidl to take arl action, the
efTect of which will he to cause the "private security or payi7,ient test" (as such terril is
defined in Section 141 ()f the Code and in applicable Regulations) or the "priv,,ate loan
financing test (as SUCII terra is defined in Section 141 of the Code and in applicable
Regulattoris to be satisfied with respect tee tile Series 2007 Bonds or RefUnding Bonids,
3) The Redeveloper will take no action', and will not fail to take an action,, the
effect of which will be to cause the Series 2007 Bonds or Refunding Bonds to be
deten-nined to be ail "arbitrage bond"(as such term is defined in Section 148 of the Code
and in applicable Regulations),
4) The Redeveloper will take no action, and will not fail to take ail actioji., ffic
effed ofv Ulrich will be to cause interest on the Series 2007 Bonds or, Refunding Bonds tobeincludableingrossincomeforfederalincometaxpuT-poses.
Section 3.6, 1), yjjjpij AAhPK_itv Costs. The Redeveloper is responsible aponsibletoyAuthorityCosts", Which terra tneans reasonable out-of pocket-costs incurred by the City oil- Authority for: (i) the Authority's financial advisor in connection with the Authorit 's i a ciaIfill11,
participation in redevelopirient ofthe Remnant Parcel, including without limitation all costs related
to the negotiation and preparation of this Agreement. (d) the City or Authoritys legal counsel in
connection with riegotiation an(] draffing of this Agreement and any related agreements or
docull1jern'-, n a), -vices related to, the Authorit 'sadair ), legal services y financial participation in
redevelopment of the Property; and (iii) any consultants retained by the City and Authority or
planning, g, environmental revie)x, and engineering related to tile Minif1junj JjTjplIoVejIjrjejjtS, including
the zoning and land use approvals, City and Authority staff costs an(] costs and expenses shall not
be Authority Costs,
b) At any trine, but not more often than monthly, the City or Authority may request
payment of Authority Costs, and the Developer agrees to pay all Authority Costs within ten days of
the City or ,authority's written request. supported by suitable billings., receipts or other evidence of
Ithearnountandnatureof' Authority Costs incurred, At Redeveloper's request, but no more often
than monthly, the Authority
I
will provide Developer with a written repoll on current and anticipated
expenditures for Authority Costs, including invoices or other comparable evidence,
Section 3.7, l3usirless Subsidy "T "he parties agree and understand that neither the Authority
nor the Cil y, U., providing an), assistance to the Rcdevehiper under this Agreement with respect to the
Remnant Parcel, ail(] that therefore this Agreement is not as "business subsidy" under the Business
Subsidy Act,
The reniainder of this page is intentionally lefir blank,)
468'46tM NINIH (4.205-23 9
Construction 001inimunjim (!),,c ilents
Section 4. 1, Construefioll (wf'Milullluln I '11te Redeveloper aq..rrecs that it will
construct time Minimuin Improvements oil time Rernilant Parcel in accordance , with approved
OnStT'UCti0n Plans, arid at all rinses while Redeveloper owns the Remnant Par-eel, will operate,
maintain, presm7e arid keel) time respective components of" the Minimum Improveinents or cause
such components to be operated. maintained, preserved and kept with the apINArtenarices and everypartaridparcelthereof, in good repair arid condition,
Section 4,,2. ' Co " zi - st " qiction , onTiP1 - al - i , s. Befbi-e conlrilencing consir-LICtiOn Of thC Minimum
Improvements. tile, Rede%reloper shall submit to the Authority C , onstruction Plans, flie City's chief'
building official and community development director will review and approve all Construction Plans
on behalf of the Authority, and for the pull)oses of this Section the terry) "Authority" mearis those
narned officials. "I ,me Construction Plans shall provide for the construction of' (lie Minimum
linprox/ements arid shall be in conformity Nvith this Ageement, the TV Plan, and all applicable State
and local laws and regulations. The Authority will approve the ConstrUCti011 PlauS ill wHiting or byissuanceofaperinitif" (i) the Construction Plans contimn to all terms and conditrilonS of this
Agreement; (ii) tire, Constructioll Plans coilfiornl to the goals arid objectives cif` time TIF Plan; (Iii) the
Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and
regulations- Ov) the Constniction Plans are adequate to provide fior construction of the Minimum
Improvements; arid (v) there is no uncurled Event of Defliult, No approval by the Authority shall
relieve the Redeveloper of tile obligation to comply with the ternis of this Agreenrerit, applicable
federal, state and local laws, ordinances, rules; and regulations, or to construct the Minimum
Irnprovements in accordance therewith. No approval by the Authority shall constitute as x%,,aiver of an
Event of' Default, or ivailll,lcr of` army Slate or City building or other code I'CqUirernenls flizit may, arpply.
Within 30 days after reccipt ofcomplete Constmetion Plan and pennit applications for the Minimum
Improvements, the Authority will deliver to the Redeveloper an initial review, letter describing any
Comments or changes requested by Authority staff '17hereafirer, the parties shall negotiate in good faith
regarding final approval of Construction plans for the Minimurri lniprovenients. The Authoritys
approval shall not be 'unreasonably withheld or delayed. Said approval shall constitute as conclusive
leten'll ination that the Construction Plans (arid tile Minimurri linprovements., constructed Hl
accordance %N,•ith said plans) comply, to the AUth,OritV'S satisfactiorl -with the provisions of, this
Agreement relating thereto,
The Re-&N,,eloper hereby waives any arid all claims and causes of action w1latsolever resultingfrOMthereviewof, the Construction Plans by the Authority and/or any changes in time Construction
Plans requested by the Authority, except tbr any I'aflure by' Authority to perforlil its obligations urider
this Section. Neither the Authority, the City, nor any employee or official of time AuthoHlY or City
shall be resp(.,insible in any manner whatsoever for any defect ill than Construction Plans or in any work
done pursuant to the Construction Plans, including changes reqLWSted by the Authority.
C) Consiruction I-11an ('111anges. If the RedeNleloper desires to make any material change
in the Construction Plans or any component thereof after their approval by the Authority, the
468962v3 MNI (1205-23 10
Re,developer shall submit flic proposed change to the Authority fire- its approval, For puq)oses ofthisSection, the teen "material" rneans changes that increase or decrease construction costs by more than51N) +)f total constmetion cc)sts- It' the 0IIStFUCfi0ll Plans, as inodi fied by the proposed changc,
conforin to the requirements of this Section 4,2 of this Agreement with respect to sucl, pj-evj()Usjy
proved C, onstruction Plans, the Authority shall approve the proposed change arid notify the
Redevelopci in writing of its approval. Stich ill the Construction Plans shall, in any event, be
deemed approved by the authority unless rejected, in whole or iri part, by written notice by the
Authority to the Redeveloper, setting forth in detail the reasons therefor, Such rejection shall be made
as soon as reasonably practicable but in any event within 30 days after receipt of the notice oaf" such
change. Fhe Authodivs approval of any such change irr the onstruction Plans %vill not be
unreaso n ably %vithheld.
Section 4.3, Commenceirient – and ' COPT.19—ti011 -2f Corlstructiorl, Subjcct to f-Jrlavoidable
Delays, the Redeveloper shall cionurience c(.)nstj-uctiojl of the Mininium Improvernents byDecember31, 2020. SubJect to Unavoidable Delays, the Redeveloper shall cornplete the
construction of" tyro Minimuiri linproven-lent,,; by December 3 1, 2022, All work with respect to the
Minimum lnipr(:wernents to be constructed or provided by the RedevOoper on the Remnant Parcel
shall be in oonfbm iity with the Construction Plans as subinitted by the Redeveloper and approved
by the Authority,
b) The Redeveloper agrees for itself, its successors, and assigns, and every successor in
interest to the Remnant Parcel, or any part thereof, that the Redeveloper., and such successors and
assigns, shall promptly begin and diligently prosecute to completion the development of the
Remnant Parcel through the construction of the Mirlirijuln Improvements thereon, and that such
construction shall in any event be commenced and completed within the period specified irl this
Section 4.3 of this Agreernent, After the date of this Agreernent and until the Millimun')
Improvements have been fully ]eased, the Redeveloper shall make reports, in such detail and at
such times as may reasonably be requested by the Authority, but no inore tharl nionthly, as to the
actual progress of the Redeveloper with respect to such construction and leasing.
Section 4, 4, Certificateo f CgI]npjgio (a) Promptly after substantial completion of' the
Minimum Improvements in accordance with those provisions of this Agreement relating solely to
the obligations of the Redeveloper to construct the Minimum Improvenients (including the datesI'm completi(--)n thereof), the Authority will furnish the Redeveloper with a Certificate of
ompletion in substantially the form affached as Schedule B. Such certification by the Authority
shall be a conclusive deterimnation of satisfaction arid temnination ol'the agreements and COVC11arnts
in the Agreement and in any deed with respect to the obligations of the Redevelopera and its
successors and assigns, to construct the Minimum linprovernents and the date for the completioll
thereof Such certification and such determination shall not constitute evidence of cornpliance with
or satislaction of any obligation of the Redeveloper to any Flolder ofa Mortgage, or any insurer of
a Mortgage, securing money loaned to finance the Minimum Improvements, or any part thereof,
b) Upon Rede'veloper's request, the Authority shall fitirnish to the Redeveloper a
Cellificate ofCompletion l'or each housing unit upon sut.)stanfial completion of"such unit, as evidenced
by issuance ofa certificate ofoccupancy thereffir by (fie responsible insPecting authority.
468962vI NINI CLN5r~2s
c) 11" the; AMI-101-IN shall refuse or fail to provide any certification in accordance with
tile Provisions of this Section 4A of this Agreement. the Aulhorltv shall, within thirty (30) days
aMler written request by the Redeveloper, provi(le, the Redeveloper Willi a written staternent,
indicating in adequate detail in what respects the Redeveloper has fiailed to coTriplete tile, NIiiinnurn
Irnprovenients in accordance with the Provisions of' the Agreernerit, or is othem,ise jr, del'ault, and
what measures or acts it vv ill be necessary. it, the opinion of'the Authority, tbr the Redev'cloper to
take or perform in order to obtain such, certi fication,
d) The construction of the Minimum Improvements shall be deemcd to be substantially
c,oniplete fin- the PUITOscs, of this Agreernent when the Redeveloper has recelved a cerlificafe of'
occupancy 1rom the City for all housing units, and the specified site in-iprovements fear the
Minin'lum Improvements have been substantially completed as reasonably detennined by theAuthorityRepresentative,
Section 4.,5. Records, rlr'
he Authofity and tile City through any authorized representatives,
shall have the right at all reasonable times afier reasonable notice to inspect. examine and copy all
books and records of` Redeveloper relating to the Minimurn Improvements, Such records shall be kept
and maintained by Redeveloper through die'"remination Date.
The remainder of this page is intentionally ]ell blank,)
46K9620 MNi (1205-23 12
Section 5.p Ip. (a) The Redve I oper gill pr(Mde and maintain at all times during
the process oil" constructing dire Minimurn Improvements an All Risk Broad Form Basis InSUrance
Policy and, firorn tinec to time during that period, at the request of the Authority, fUmish the
Authonly with prool'of'payrneril c)fprerniurns oil policies covering the following
0) l3uilder's risk insurance, written oil the so-called "Builder"s Risk —
C.onipleled Value Basis," in an amount equal to one hundred Percent (10W/,) of tbe
insurable vahh,' of" the :Minimum Improvements at the date of completion, and with coverage
available in nonreporting Bonn on the so-called "all risk" lbrin (4pokey. The interest of'the
ALIthOrity sli,all be protected M accordance with a clause in forrn arld content satisfilctory to
the Authority;
ii) Comprehensive general liability insurance (including operations, contingent
liability, 0jVrati0IIS Of Subcontractors., completed operations and corilractual liability
insurance) together with an Owner's Contractor"s Policy wvith firilits against bodily in.jUJ-V
and property damage of not less than S 1,000.000 for each OCCUrrenec, and shall be endorse(']
to show the City and ALIthority as additional insured (to accomplish the above-required
Inuits, all U1111brella excess liability policy may be used), and
iii) Workers' compensation insurance, with statutory coverage,
b) Upon conipletion of construction of' the Mininimn Improvements and prior to the
T'en,nination Date, the Redeveloper shall maintain, or cause, to be maintained, at its cost and expense,
and from time to time at the request of the .Authonity shall furnish proofol'the payment of'prenliums
on, insurance as follows:
i) Insurance against loss and/or damage to the Minimum Improvements under a
policy or policies covering such risks as are ordinarily insured against by sin,ular businesses,
Ii) omprehensive general public liability insurance, i
I
ncluding personal injury
liability (w,ilh employee exclusion deleted), against liability for injuries to persons and/or
property, in file minimum amount for each Occurrence and for each year of S1,000,000 and
shall be endorsed to sho", the City and Authority as additional illSI.Ireds,
Oil) Such other insurance. including workers' compensation insurance respecting all
einployces ofthe Redeveloper, in such amount as is customarily carried by like organizations
engaged in like activities of' comparable size and liability exposure; provided that the
any pail ofits fiabili y fir vvorkers' Redeveloper irray be self' hisured with respect to alt ot
cori'l Pell Sation,
468962s 3 NIM ('1205,23 13
c) All insurance required in Article V (& t1jis Agreement shall he taken out wid
maintained in responsible inSLIT.-WICC coinpaniI
es selected by the Redeveloper that are authonized under
the laws ofthe State, to assurric the rishs covered thereby, L pon reqLJCS(, the Redevelopei will depolsit
annually with the Authority a certificate or certificates or binders ofthe respective insurers stating thatSUChinsuranceisinf6rceandeffect. Unless otherwise provided in this Article V of this Agreement
each policy shall contain a prcwision that the insurer shall not cancel nor noodify it in such a way as to
reduce the coverage provided below the aniounts required herein without giving wNrlitter, u()tice 10 tile
Rede\,eloper and the Authority at least 30 days, bleforc the cancellation or rnodification becomes
effective. In lieu of ' separate policies, the Redeveloper may tIrl,aintain a single policy, blanket or
umbrella policies, or a combination thereof', having the coverage required herein. In which event the
Rcdeveloper shall deposit with the Authority a certificate or certificates ofthe respective insurers, as to
the ainclunt of coverage in f6rce upon the .mininium! Improveinents,. Any insurance required Under' this
A rlicle nray be provided separately by Phase or building,
d) The Redeveloper agrees to notify the Authority Immediately in the case of' damage
exceeding S 100,000 in amount to, or destruction Of time Minirriurn Improvements or any portion
thereof resulting from fire or other casualty. In SUCh event the Redeveloper will forthwith repair,
reconstruct, arid restore the Mininium Improvements ter substantially the same or an inIprw,,1ed
condition ear value as it existed prior to the event causing such damage an(], to the extent necessary to
accomplish such repair, reconstruction, and restoration, the Redeveloper will apply time net procceds of
any insurance relating to such darriage received by the Redevelopler to the payrnent or, reirnburserrient
ofthe costs thereof
The Redeveloper shall complete the repair, recomtruction and restoration of the Mininij,11,1
linprovernents, regardless of whether, the net proceeds of insuralr1jec received by the Redeveloper for
such purposes are sufficient to pay for the same, Any net procceds remaining after completion of such
repairs, constmetion, arid restoration shall be the property ofthe Redeveloper.
Section 5,2. Subordination. Notwithst and inn anything to the contrary herein, the rights of
the Authority with respect to the receipt and application of any insurance. proceeds shall, in all
respects, be subordinate and subject to the rights of any Holder under a Mortgage allowed pursuant
to Article 'ill of this Agreement,
Section 5.3. QqLaLffl! qtioris. Notwithstanding anything herein to the contrary, the parties
acknov%,,Iedge and agree that upon transfer of the Remnant Parcel or portion thereof to another
person or entity, the Redeveloper will remain obligated under Section 5.1 hereof relating to such
portion trarrsf"m-ed, unless the Redeveloper is released frorn such obligations in accordance with the
terms and conditions of Section 82(b) or 8.3 hereof'.
468962%,3 MN (1-20522 14
A WFICLE NII
I "ax Increment- 'Taxes
Section 6,1 view oil "Faxes. 'Fhe RL(Jeveloper agrees that prior to the 'I"ermination Date it
kvill 1101 cause a reduction in the real property taxes paid in respect ofthe Remnant Marcel thro ugh: (A)
illf-ul destruction of the Remnant Parcel or any part thereof. or (B) willftil refusal to reconstruct
damaged or destroyed property pursuant to Section 5. 1 (d) of" this Agreernent, The Redevelo er alsoP
apps es that it xvill not, prior to the 'Femil nation Date, seek exemption frorn propeily tax for the
Bare-mant Parcd or ar)y porlion thereof or trans&r or permit the transfer ofthe Remnant Parcel to any
entity that is exempt Crom real property taxes and state law (other than any, portion thereol"dedicated or
conveyed to the City it) accordance with plaiting of the Remnant I'lareel), or apply for a def rral of
property tax. on the Remnant Parcel pursuant to any law,
I'he reinainder of this page is intentionally left blank,)
4689b2-0 MM (1-205-23 15
ARTI CL E N't I
Section T, 1 . Mo F, a) Bef6re commenceinent of constm.ctlon of' thcEL6,!& . :! ga.Lm. (
Minumm'i Irilprovements, the Redeveloper shall submit to the City evidence of one or rnore
commitments f6r, financing wN,hich, together with coarmitted equity fim, such constrLictioll, IS
sufficie"t for Payment of the Minimum Improvements, Such commitinents may be subrnitted as
short terin financing, long terITI Mortgage financing, as bridge ](,)an with a long terni, take-out
financing commitment, or any conibination ofthe foregoing,
b) If` the Authority finds that the financing is sufficiently committed an(] adequate in
amount to pay the costs specified in paragraph (a) then the Authority *shall notify the Redeveloper
ill writing o f its approval. Such approval shall not be unreasonably withheld an(] either approval or,
rejection shall be given within twenty (20) (lays from the date when the Authority is provided the,
evidence of financing, A failure by the Authority to respond to SUCh evidence of financing shall bedeemedtoC01ISfitUteanapprovalhereunder. Ifthe Authority re.jects the evidence of financing asinadcqWite, it shall do so in writing specifying the basis for the rejection, In any event the
Redeveloper shall submit adequate evidence of` financing within ten (10)' (lays after such rejection,
c) In the ewcnt ttwt there occurs a default Under any Mortgage authorized ptirsuant I ' (I
Section 7'.1 of this Agreement, the Redeveloper shall cause the Authority to receive copies of away
notice of" defiault received by the Redeveloper ftorn the holder of such M'ozigage. Thereafler., the
Authority shall have the right, but not the obligation, to cure any such default on behall'of the
Redeveloper within such cure periods as are available to the Redeveloper under the Mortgage
documents. In the event. there is an event of' default under this Agreement, the Authority will
trarisinit to the Holder of an), Mortgage a copy of any notice of default giveii by the Authority
pursuant to Article IX of this Agreement.
d) In order to fiacilitate the securing of other financing, the Authority abTees to
subordinate its rights under this Agreement provided that such subordination shall be subject to
such reasonable teens and conditions as the Authority and Flolder mutually agree in writing,
Notwithstanding anything! to the contrary herein, any subordination agreement must include the
provision described in Section 7, 1 (c).
The remainder of this page is intentionally left blank,)
4689620 MNI ("'L205-23 16
ARTIC"LE, Vill
N-ohibit fication
Sectioll 8,1, as to Redcveloljtppq., ']'he Red eveloper represents and agrees
that its Purchase cif` the RCITHIM11 Parcel, and its other undertakings pursuant to the Agreement, are,
and will be used., for the purpose of redevelopment of the Ren-inant Parcel and not ficu-speculalion in
land holding,
Section 8.2. Ppcthib.ition i1-t- Red ve s Transfier O T, X, 'N I! I of
Agv ejnqa;, The Redeveloper represents and agrees that r. nil thcTermination Date,,
a) Except as, specifically described in this Agreement, the Redeveloper has not in,ade or
created and will not inake or create or suffer to be made or created any total or partial sale.
assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or fbi-1.11 of 0,11,
With respect to this Agreernent or the Remnant Parcel or any pail thereof or any interest fl-tereill, or
any contract or agreement to dol any of the same, to any, person or entity (collectively, a
Trarlsfer-), without tile prior, wvritten approval of the Authority's board of' coinmissioners. The
term "Transfer" does not include (i) encumbrances made or granted by way, of security for., and
only for, the pur-pose of obtaining constniction, interim or permarrent financing necessary to enable
tire Redeveloper or any successor in interest to tile Remnant Parcel or to construct the Minimum
firiprovenients or comporrent thereof, (ii) any lease, license, casement or similar arrangement
entered into in the ordinary course of` business related to operation of the Minimum Improvements,
iii) any sale, com,eyance, or transfer in any form to any Affiliate of the Redeveloper, or ally
Affiliate of the; Redew,cloper"s partners. or, (iv) any sale, conveyance, or trarlsfer ofany partnershipinterestsoftheRedevelopertoanAffiliate ()f the Redeveloper or its Partners.
b) if the Redeveloper seeks to effect a Transfer, the Authority shall be entitled to
require as conditions to such Transfer tluW
1) Any proposed transferee shall have the qualifications arld financial
responsibility, in the reasonable j Udgirient ofthe Authority, necessary and adequate to fulfill
the obligations undertaken in this Agreement by the Redeveloper as to tire portion of' the
Remnant Parcel to be transferred; and
2) Any proposed transferee, by instrument in Writing satisfactory to tire
Authority, shall, for itself and its successors and assigns, and expressly for the benefit of the
Authority, have expressly assurned all of' the obligations, of the Redeveloper under this
Agreement as to the portion of the Remnant Parcel to be transferred and agreed to be
subject to all the conditions and restrictions to which the Redeveloper is subject as to such
portion.- provided, however, that the fact that any transf'eree of, or any other successor in
interest whatsoever to, the Remnant Parcel, or any pail thereof, shall not, for whatever
reasom, have assumed such obligations or so agree(], and shall root (unless and only to the
extent otherwise specifically provided in this Agreement or agreed 'to in writing by the
Authority) deprive the Authority of any rights or remedies or controls with respect to tile
Remnant Parcel, the Minfinurn Improvements or any part thereof or the conStf-LICtiOT) of the
4684620 NIM ( 1,205,23 17
MilliMUM Improv, ernents; it bcing the intent of' tbe Parties as expressed in this Agreement
that (to the Fullest extent permitted at law and in, equity and excepting only ill the inanner
and to the extent specifically provided Otherwvise in tbis Agreement) no transfer of" Or
change with respect to, ownership in the Remnant Parcel or any part thereof, or any
inI
te resl
therein, however consurim-riated 01• OCCUTTil1g. arid Wh011er VOILintary or involuntary, shall
operate, legally, oi- pnictically, to deprive or limit the Authority of` or,. Mth respect to any
rights or remedies on control,,.,, provided in 01" resulting fi•oin this Agreerneilt with respect t("a
the Remnant Parcel that the AL11hority would have had, had there been no such transfer or
chanj,,ze. In the absence of specific written agreernent by the Authority to the contral-y, 1,1()
such transfer or appr()val by the Authority thereof shall be deerned to reheve the
Redeveloper, or any other party bound in any way by this Agreement or otherwise with
respect to the Remnant Parcel, ffimn any ofits obligations with respect thereto,
3) Any and all instrunlents and other legal documents involved in effecting the
trarisf'er of any interest in this Agreement or the Remnant Parcel governed by this Article
VIII, shall be in a f'orm reasonably satisfactory to the Authority,
M If` the conditions described in paragraph (b) are satisfied, then the Transf'er Nvill be
aj)proved and the Redeveloper shall be released from its obligation under this Agi-eement, as to the
porlion of the Remnant Parcel that is transfen°ed, assigned, or other",ise conveyed, Unless fire
Parties mutually agree othel-Nvise, The Authority will revieNN,, and respond to a request 1j.)j,
within 45 days after receipt ol"a written request, Notwithstanding anything to the contrary herein.
any Transfer that releases the Redeveloper from its obligations under this Agreement (or ally
portion thercol) shall be approved by the Authoritys board ofcomMissioners. If the Redeveloper
rernahis fully bound under this Agreement notwithstanding the Transfer, as documented in the
transf'er instrwrient, the Transfer rnay be approved by the Authority Representative. The provisions
ofthis, paragraph (c) apply tea all subsequent transferors,
Section 8. 3, R ' el ' ease ' a , i , i " d -" I - n , dernnific , at - joii - Covenant " s , (a) The Redeveloper releases from
and covenants arid agrees that the ,Authority find the City and the governing body rneiribers,
officers, agents, Servants arid employees thercof'shall not be liable for and agrees to indeirinify andholdharmlesstheAuthorityandtheCityandthegoverningbodyinernbers, officers, agents,
servants an(] employees thereof against any loss or darnage to property (n- any injury to or death of'
any person occurring at or about or resulting from any defect in the MiniT111.1111 ImProverrients,
b) Except for willful or negligent misrepresentation, misconduct or negligence of tile
indemnified P,arlies (as hereafter defined), and except fbr any breach by any of the Indernilified
Parties of"their obligations under this Agreement, the Redeveloper agrees to protect an(] defend the
Authority and the C ity arid the governing body members, officers, agents, servants arid employees
thereof' (the "Indernnified Parties"), now or forever, and further agrees to hold the Inderrinified
Parties harnfless frorn any clairn, demand, suit, action or other proceeding whatsoever by any
person or enmity whatsoever arising, or purportedly arising from this Agreement, or the transactions
contemplated hereby or the acquisition, construdion, installation, ownership, and operation of the
Minimuin linproverrients,
46SO62,0 NIN11 (1205 23 18
C) Except fbr any negligence (,)f tjme 111(jej 11111 fi e(j Parties (as defined in clause (b)
above,), and excepi fin- any breach by ariy ofthe Indemnified Parties oftheir obligatiol-Is under this
Agreernew, the Indemnified P,,.irfics shall not be liable for any damage or, injury to the persons or
property of the Redeveloper or its offic'ers, agents, servards or employees or any, other. person vho
may be about the MilliML111-1 1111proveinenis due to any act ofnegligence ofany j)CrrS()jj.
d) All covenants, stipulations. promises, agreernents and obligations of' the Authority
contained herein shall be deemed to be the covenants, stipulations, promises. agreements and
obligations of" the Authority and not of any governing bocly member, officer, agent, servant 01,
employee ofthe Authority in the individual capacity thereof
The remainder of this page is intentionally lefi blark)
4689h2% 3 NINI C1 205-23 19
Events of Default
Section 9, 1. Events M'Det"bull Dcfined "I'lle following shall be '-F'vents of Del'aull" under
this Agreement and the term -Event of'Deftlult- shall mean , whenever it is used in this Agreement,
any one or more of the t6flowing events, after the non-defaulting party provides 30 (lays written
notice to the defilUltilIg party ofthe event, but only if the event leas not been cured within said 30
days or, if tile event is by its nature incurable within 30 days, the defaulting party does not, within
such 30-day period, provide assurances reasonably satisfactory to the pearly providing notice of
default that the event will be Cured and will be CLITed as soon as reasonably possible:
a) Fadure by the Redeveloper or the Authority to observe or- perfim-m any covenant,
condition, obligation, or agreement on its part to be observed or performed under this Agreement;
b) The Redeveloper-
i) files any petition in bankruptcy or fow any rcorganizationi, arrangement,
composition, readjustment, liquidation, dissolution., or sirnilar rellefunder the United States
Batik ruptcyAct or under any similar federal or- State law
m
00 makes all assignment fill- benefit of its creditors,
iii) admits in writing its inability to pay its debts general])), as they becorne due-,
iv ) is adjudicated a bankrupt or insolvent.
Section 92, Remedies " oil Default, (a) Whenever. any Event of' Default referred to in
Section 9.1 of this Ag,ecrnent occurs, the tron-defaulting; party may exercise its rights under this
Section 9.2 after providing thirty days written notice to [lie defaulting party of the Event of'Def'ault,
but only if (fie Event of DefaUlt has not been Cured within said thirty (lays or, if' the Event of'
l3efault is by its nature incurable within thirty days, the defaulting party does, riot provide
assurances reasonably satisfactory to the non-defaulting party that the Event of Default will be
cured and will be cured as soon as reasonably possible: Take whatever action, including legal,
equitable or administrative action, which may appear necessary or desirable to collect air),
payments due under, this Agreement, or to entbree perfon-nance and observance ofarly obligation,
agreement, or covenant under this Agreement.
Section 9. 3, No Rcrnedy-p Ngj.q,5Jvc, No remedy herein conf'errcd upon or reserved to the
Authority or Redeveloper is intended to be exclusive of' any other available remedy or renledics,
but each and every such remedy shall be cumulative and shall be in addition to every other remedy
given under this Agreement or now, or hereafter existing at law (:)r in equity or by statute. No delay
or ornission to exercise any right or power accruing upon any default shall irnimir any such right or
power or shall be c(mistrued to be a waiver thereof, but any such right and power may be exercised
4689620 MNi ('1205 23 20
firom time to firne and as otter as array be deemed expedient. In order to entide the Authority to
exercise an, y remedy reserved to it, it shall nc t be necessary to give nofice, other, them such notice as
may be required in this Article IX,
Section 9A. No Ackfitional Waiver jjm)jjq One Waiver, In the event any agreement
contained in this Agreement should be breached by cither paily and thereafter waived by the other
paily, such waivcr shall be limited 'to the imrticular breach so waived and shall not be deemed to
wvaivc any other concun-ent, previous or subsequent breach hereunder,
Airy partner of tire Redeveloper shall have the right, but not tile obligation, to cure any
Event ofDefarult under this Agreenient, and the Authority and/or City shall accept SLIch cure,
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1689620 MM C1205-23 21
MINM
Additional Provisions
Section 10J. Conflict of Interests- AL Rqpresentat'ves Not Indiv d " ual yLiable. The Authoilty, the City, and the Redeveloper, to the best resp"ect"i-vc-k,n`o,wJ edge,
represent and agree that 110 IlleMbCr, official, or eniployee of the Authority or City shall have any
personal interest, direct or Indirect, in the Agreement, nor shall any st1cf, jyj ember, official, or
employce participate in any decision relating to the Agreement which affects his personal interests
or the interests of any cor-poration, parinci-ship, or association in which lie is, directly or indirectly, interested, No inernber, official, or employee of the Authority or City shall be personally liable to
the Redeveloper, or any successor in interest, in the event of any deftault or breach by theAuthorily
or, City, or f6r any arnount which may become due to the Redevcloper Or SUCCCSS01• ol' (,)n any
obligations under the terms of the Agreement,
Section 10,2. E (LgLa L - f i The Redeveloper. for itself" and its
successors and assi gjjS agrees that during tile construction of the Minirnum Improvements
provided for in the Agreement it will comply with all applicable fe.deral, state and local equal
ejnployrjrjent and non-discrin-fination laws and re. UlatioliS.,
Section 10.3, Res ' tjj c " ti - ons " o ' ri LJse, The Redeveloper agrees that unill the 1'ertninatioll Date,
the Redevc1oper, and any successors and assigns, shall devote the Renniant Parcel to the operation
of the Minuilurn briprovernents for uses described in the definition (ufsucli terni ill this Agrecillent,
and shall not discriminate upon the basis of race, color, creed, sex or national origin in the lease or
rental or in the use or occupancy of the Reninant Parcel or any improvements erected oi to be
erected thereon, or any part thereof,
Section 10.4. Provisions Not M ...._With - - Deed, None of" the provisions of this
Agreernent are intended to or shall be merged by reason of any deed transferring any interest in tile
Renlriant Parcel and any such deed shall riot be deemed to affect or impair the provisions arld
covenants of` this Agreement,
Section 10,5, "I"'Itles of Articles and Sections. Any titles of the several parts, Articles,, and
Sections of the Agreement are inserted for convenience ot'relerence only and shall be disregarded
in construing or interpreting any of its provislorls.
Section 10,6, Notices and Demands, Except as, otherwise expressly provided in thisNook,
Agreement, a notice, demand, or other cornmuni cation under the Agreement by either party to the
other shall be sufficiently given or delivered if it is dispatched by registered or cer-tified nlail,
postage prepaid, return receipt requested, or delivered personally-, and
a) in the case of the Redeveloper, is addressed to or delivered personally to the
Redeveloper at 2905 Northwest Boulevard, Suite 1510. Plyinouth, MN 5544 1-2644, Attention: Mark
S. Moorhouse and Ron Mehl; with a copy to,,
408962,3 NINJ (1.205-23 22
Winthrop & Weinsfine
225 S(..)Uth Sixth Street, Suite3500
Minneapolis, NIN 55402
AtMI-I John 1.) Nolde
b) in the case of the Authority or City, k addressed to or delivered personally at 590
40th Avenue NE, Columbia f leights, Minnesota 55421, Attri- Executive Director/City Marviger,
or at such other address with respect to either such parly as that party rnay, froin fime to
fin'ie, designate in w6ting and forward to the other as provided in this Section.
Section 10.7', CO-U.11!C-m41-15. This Agreement may be executed ir) any number of'
CO UlAerpails, each of which shall constitute one and the same instrument,
Section 10,8, mends ' -n -ne " q This Agreernent may be amended only by written agjvement
approved by the Authority and the Redeveloper,
Section 10,9, AluthLO-!Y Unless otherwise specified,, any approval
required by the, Authority under this Agreement may be given 'by the Authority Representative, and
any approval required by the City -under this Agreement may be given by the City Representative,
Section 10,10. 'I'ej-pi ' in ' ati - op ", This, Agreernent terininiates, on the Termination Date, except
that terrnination ofthe Agreement does not teminate, lirrilt or affect the rights of" any party that
arise before the Tennination Date,
469962%,3 NPd ( l 205-23 23
IN WITNESS WJIERF:C)F., the Authority bw, caused this Agreenient to be duly execuled ill
It s naine and behalf "and its sea] to [)e hel'CUlItO daily affixed and the Redevelol-wi- has Caajsc'd this
Agivennent to be duly exeCU[ed in its tranx an(I behalf oil or as of the date fil° st above written.
COLUMBIA FIFIGHTS E( IONONIK"'
DEVE LOPNI EN'TA UJ' TY
B
By
Its Exec I
STATE OF MINNESOTA
ss
OL)NI"N" OF ANOKA
day ofL,..'I"he Sf6regoirig, i nstnimew wa acknowledged belbre me this,
wtorthePresidentan(i Executi, 16, aiid'Walter R. 1'-ehst,
ofthe Columbia 1, eights Economic Development Auth(wity, a public body politic and corporate, on
behaul f" of thec Authority.
Notar-y Public
KsVrHLEEN SHARON SRU
WE&
I
Notary Pub0c
Minnesota
wrbspm irt-'Jm 31,2017
468902 vl IIANI (1205 23 S-1
CITY CSI: 'C' C)LJJM,BlA HEIGHTS
B
r
By
lis city Mwiager
STATE OF MIN NESOTA
ss.
COUNTY OF ANOKA
The ibregmig instrument vas acknomd edged bef61 e nic this day,olf".. ITN " W" 1- .. 1"Cl., /, 2
2016. by Gary Peterson and Walter R. Felist, the Mayor aiid City Manager offhe City of Colui, bia
Heights, a Minnesota municipal corporation, on behalf'pi'the (-,'ity.
Notary Public
0=AT,
17 017mEK6JPw '01
4()Y,1)620 NINI ( 1-205-23 S-2
701 UMBIA HEIGHTS
ASSOC" IATE,S 11, 1,11T,
L,ial)lity Litnited Partnership
LEASED HOUSING
a MiTurwsola Limited
By; C"OlUmbla Heights Leased Housing Associates 11,
LU",
lv General Pariner,,-7
m
STATE OFMINNESOTA, )
I SS,
L) N TY OF HENNEPIN
Mark S. Moorhousg'
Its Senior Vice Pyesident
The foregoing instrument was acknowledged beft)re file this day (),f . ........ ..... .
2016 by Mark S, Moorhouse. the Scnior Vice Prcsident of CoIL1111bia fleights ],eased I-fousingAssociatesIt11,1C, , as Minnesota firnited fialbility company, the General Panner of (7olumbia
Heights Leased Housing Associales, 11, 1-11P,1, a Minnesota hrruted habibly firnited partnershlp, on
behealf'of the partnership,
No6ory Pulflic,,
41SS9620 MM (A205 23 S-3
SC IJEDULE A
REMNANTPAR( I ,
IEL
Outiol 13, HUSet Park
Anoka ("ounty, Minnesota
Forrens Illropelly
Torrens("erlificate No. 119344
4689620 NIN 1 (1,205 23 A-]
S(,"I4EDLJLE B
FORNI OFCIERTJ FICATE OF CONI PLETION
The reniainder of this page is intentionally W1 blank)
4689620 NINI (1205,23 1..3-!
CERTJF1(-','ATE OF COMPLETION
WHEREAS, the C'(jj)ia Heights Econornic Development AWN-vity (the "Authority"), tine
City of Iolumbia Heights (the "City") and Colurnbi'i Heights I-eased Housing Associates 11, 1I Ajj)
Redeveloper-) entered into a certain Second Amende(] and Restated (.1ontract f6r Private
Redevelopment dated October 30, 2016 ("(. ontract"); and
WHERIHAS, the Contract contains certain covenants and restlicti(ilis set forth in,Artieles III
and IV thereof related to completing cemain Minimum Improvements; and
WHERFAS, the Redeveloper has performed said covenants and conditions insofar as it is
ahle in a mariner deerned sufficient by the Authority to perrmt the execulkn) and recording of this
certification,
NOW, THERE"FORE, this is to certif that all construction, and other phYsical
improvements related to the Minfinum Improvements specified to be one and made by the
Redeveloper have been completed and the agreernents; and covenants in Amicles III and IV of the
Contract have been perfimned by the Redeveloper, and this Certificate is intended to be a
conclusive determination of the satisfactory tennination of the covenants and conditions of Ailicles
III and IV of the Contract related to conipletion of the Minimurn [111provements, but any othercovenantsintheContractshallremair), in full fbi-ce and effect,
Signature page, follows)
4689620 MNI C1205-23
Dated:
COLUMBIA HER"ill"I'S
0
STATE 01"MINNESOTA
SS'
COUNTY OF ANOKA
Authority Re resentativep
The fioreping instnulient was acknowledged befibre me this day of 20 b,
tile of the C"ohlinbla Heights ECMIMITIi C
Development Authofity, on behalf of the Awhonty,
Notary Public
TMS CIOCUITIellt drafted by:
Kennedy & Graven, ("hartered (MNI)
470 U.S. Bank Plaza
Minneapolis, Mr
N 5540,2
468",462 3 M N C L201 S -23