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HomeMy WebLinkAbout2016-2756.18EXECUTION COPY FroTt'l PRIVATE REDEVELOPMENT By and Between COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY MM HY-VEE, INC. Dated as of: O'ctober 24, 2016 This document was drafted by: KENNEDY & GRAVEN, Chailered (MNI) 470 U.S. Bank Plaza Minneapolis, Minnesota 55402 612) 337-9300 http://www.keiinedy-graveii.coin 4 87056A MN 1 (1205 -65 ffsxx EM PREAMBI.-E ...... -- .... — .................................. --- ............. I ARTICLE I Definitions Section 1.1. Definitions... .................. — .... ...... .......... ........ ......................... ARTICLE 11 Representations and Warranties Section 2.1. Representations by the Authority ................. — ..... ........................... ......... _5 Section 2.2. Representations and Warranties by the Redeveloper....... .... — ................ - ....... ....... 5 ARTICLE III Propertv Acquisition, Redevelopment Costs Section 3.1. Status of Redevelopment Property ........................ - ................ ....... - ..... ........ ........ 7 Section 3.2. Environmental Conditions ................. --- ...... ................ -- .... — ........... ........ 7 Section 3.3 Issuance of Note... ..... ....... - .... — ... ............................ ........... ...... 7 Section 3.4. Business Subsidy ........................... ............. ........................... ..... ............. 8 Section 3.5, Payment of Authority Costs... ............ - ....... ................................ - ......................... 9 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Improvernents ................ ............... —.— ... .............. ........ .......... -10 Section 4.2. Construction Plans ....... - ............... .................. -- ............................... - ........... ... 10 Section 4.3. Commencement and Completion of Construction, ............................ ........ .......... I I Section 4.4, Certificate of Completion . .......... ....... .................................. .......... ............... I I ARTICLE V Insurance Section5.1. Insurance ..... ..... - ........... ... I ........... 11- .................. .......... ......... — .... ...................13 ARTICLE VI Tax Increment; Taxes Section 6.1. Right to Collect Delinquent Taxes ........ — ............ ...... ..................................... --j 5, Section 6.2. Review of Taxes —,, ..... ................................................................. ....... ..... —.15 487056A MNI 0-205-65 ARTICLE VII Financin Sectionl7.|. Generally- .—._._~.....—........---..........._._..._..—_—____.~_.l6 ARTICLE VIII Prohibitions Against Assignment and Transfer; Indemnification Section G.1. Representation emuz Development ........... —..... ...... .......... ...... .......... --_l7 Section 8.2. Prohibition Against Redeveloper's Transfer of' Property and Assignment of Agreement .... ........ — ... --- ............... _ ......... ....... ............. l7 ARTICLE IX Events of Default Section 9.1. Events 0f Default Defimod— .... ........... ......................... ..... ......... ......... ........... 2O Sectiwm9.2. Remedies ooDcfauU-- ......................................... — ... ...... ............................. 28 Section 9.3, No Remedy Exoo$ivme— ..... .......... .... — .... ................................ _........ ...... -2l Secti0,ng.4. No Additional Waiver Implied by One Waiver ........ —_---_—_---......... 21 Section 9.5. Attorney Fees —_— ...................... .................. __................. ...... .................. 21 ARTICLE X Additional Provisions Section 1Q.I. Conflict ofInterests; Representatives Not Individually Liable ... ............. ..._,.22 Section1(\2. Emmm ....... .......................... ..... ......... _... --- .... _.22 Section 10.3. Restrictions om Use .......................... ...... .............. ............ — ............................. .'22 Section 10.4, Provisions Not Merged With Deed ... .......... ....... --- ............... .... ... — .............. 22 Section 10i5, TiticemfArt«les and Sections ........ .......... ........................... .......... ... .... ............ 22 Section lA.(. Notices and Demands ......... _—..__._............ _---...... .......... ................... 22 Section10.7. Counterparts ............. ......................... ...... --- ......... ...................................... _23 Section10.S. Recording. .... ......... ........... ... .... .............................. ............ ---......... ....... 23 Section 10.9. Amendment ........... _......... _....................... -~. ...... ......... ......... .................. 23 Section lU.1{\ Authority Approvals ............ ....................................... ................................ ...... 23 7[E ...... ............ ........ ........ __... _ .............. .............. ............... .......................... 24 SIGNATURES... ...... ...... ..^............................... - ..... .......................... -------............... 24 SCHEDULEA Redevelopment y SC}iETJULEB Authorizing Resolution SCHEDULE C Certific4tewfCompletion 487056v4 mm/[L2 5-65 . THIS AGREEMENT, made as of the 24th day of October, 2016, by and between the Columbia Heights Economic Development Authority, a public body corporate and politic under the laws of Minnesota (the -Authority"), and Hy-Vee, Inc,, an Iowa corporation (the Redeveloper"). WITNESSETH: WHEREAS, the Authority was created pursuant to Minnesota Statutes, Sections 469.090 to 469.1081 (the "Act") and was authorized to 'transact business and exercise its powers by a resolution of the City Council of the City of Columbia Heights, Minnesota (the "City"); and WHEREAS, the Authority has undertaken a program to promote the development and redevelopment of land which is underutilized within the City, and in this connection created the Downtown Central Business Redevelopment Project (hereinafter referred to as the "Project") in an area (hereinafter referred to as the "Project Area") located in the City pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "I.-IRA Act"); and WHEREAS, pursuant to the Act, the Authority is authorized to undertake certain activities to prepare such real property for development and redevelopment by private enterprise; and WHEREAS, the Redeveloper intends to acquire certain property (the "Redevelopment Property") in the Prcject Area to develop on that property a grocery facility including restaurant and additional retail and office space, as further described herein (the "Minimum Improvements"); and WHEREAS, the Authority has established the Central Valu Center Tax Increment Financing District (the "'I"IF District") pursuant to Minnesota Statutes, Sections 469.174 to 469.1799, as amended (the —rlF Act"), made up of property in the Project Area including the Redevelopment Property, and WHEREAS, the Authority believes that the development of the Redevelopment Property pursuant to and in general fulfillment of this Agreement, is in the vital and best interests of the City, will promote the health, safety, morals, and welfare of its residents, and will be in accord with the public purposes and. provisions of the applicable State and local laws and requirements under which the Project has been undertaken and is being assisted. 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: 4870566 MM CL205-65 WI Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears fi-orn the context: Act" means Minnesota Statutes Sections 469.090 to 469.1 O)81, as amended, Affiliate" reams with respect to any entity (a) any corporation, partnership, limited liability company or other business entity or person controlling, controlled by or under common control with the entity, and (b) any successor to such party by merger, acquisition, reorganization 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 common control with" shall mean, with respect to any corporation, partnership, limited liability company or other business entity, the ownership of fifty pereent or more of the voting interests in such entity or possession, directly or indirectly, of the power to direct or cause the direction of management policies of such entity, whether through ownership of voting securities or by contract or otherwise, Agreement" means this Agreernent, as the same may be from time to time modified, arnended, or supplemented, Authority" means the Columbia Heights Economic Development Authority, Authority Representative" means the Executive Director of the Authority, or any person designated by the Executive Director to act as the Authority Representative for the purposes of this Agreement. Authorizing Resolution" means the resolution of the Authority, substantially in the form of attached Schedule B to be adopted by the Authority to authorize the issuance of the Note, Available Tax Increment" has the meaning provided in the Authorizing Resolution. Business Day" means any day except a Saturday, Sunday, legal holiday, a day on which the City is closed for business, or a day on which banking institutions in the City are authorized by law or executive order to close. Business Subsidy Act" means Minnesota Statutes, Sections 116.J.993 to 116,1.995, as amended, City" means the City of Columbia Heights, Minnesota. Certificate of Completion" means the certification provided to the Redeveloper pursuant to Section 4.4 of this Agreement, 2 487056v4 MN1 C1205-6,5 Construction Plans" means the plans, specifications, drawings and related documents on the construction work to be performed by the Redeveloper on the Redevelopment Property which (a) shall be as detailed as tile plans, specifications, drawings and related documents which are submitted to the appropriate building officials of the City, and (b) shall include at least the following for each building: (1) site plan; (2) foundation plan; (3) floor plan for each floor; (4) cross sections of each (length and width); (5) elevations (all sides); (6) landscape plan; and (7) such other plans or supplements to the foregoing plans as the Authority may reasonably request to allow it to ascertain the nature and quality of the proposed construction work. County" means the County of Anoka, Minnesota. Event of Default" means an action by the Redeveloper listed in Article IX of this Agreement, Holder" means the owner of a Mortgage. 11RA Act" means Minnesota Statutes, Sections 469.001 to 469.047, as amended. Minimum Improvements" means the following activities on the Redevelopment Property: Renovation (which may include, without limitation, demolition and/or construction of building addition(s)) of approximately 13,037 square feet of an existing 126,655 square-foot retail center, for a new grocery store, restaurant and/or additional retail and office use, and required site improvements, Note" means a pay-as-you-go Tax Increment Revenue Note, substantially in the form contained in the Authorizing Resolution, to be delivered by the Authority to the Redeveloper in accordance with Section 3.3 hereof to reimburse the Redeveloper for Redevelopment Costs, Parcel" means any parcel of the Redevelopment Property. Project" means the Authority's Downtown Central Business Redevelopment Project. Project Area" means the geographic area within the boundaries of the Project. Redeveloper" means Hy-Vee, Inc., an Iowa corporation, or its permitted successors and assigns. Redevelopment Costs" has the meaning provided in Section 3.3(a) hereof, Redevelopment Plan" means the Redevelopment Plan for the Project, Redevelopment Property" means the real property described in Schedule A of this Agreement. State" means the state o1 Minnesota. 3 4870566 MNJ CL205-65 Tax Increment" means that portion of the real property taxes that is paid with respect to the Redevelopment Property and that is rernitted to the Authority as tax increment pursuant to the Tax Increment Act. Tax Increment Act" or "TIF Act" means the Tax Increment Financing Act, Minnesota Statutes Sections 469. 174 to 469.1 79, as amended. Tax Increment District" or "I'lF District", means the Central 'Vale Center Tax Increment Financing District, approved by the City and the Authority on October 24, 2016 Tax Increment Plan" or "'FIF Plan"' means the Tax Increment Financing Plan for the TIF District approved by the City Council on October 24, 20116, and as it may be amended. Tax Official"' means any County assessor, County auditor, County or State board of equalization, the commissioner of revenue of the State, or any State or federal district court, the tax court ofthe State, or the State Supreme Court. Termination Date" means the earlier of the following: (a) the date of receipt by the Authority of the final payn-tent frorn Anoka County of Tax Increments from the Central Valu Center Tax Increment Financing District, (b) the date when the Note has been fully paid, defeased or terminated in accordance with its terms; or (c) the date of termination of the Note and this Agreement by the Authority due to an Event of Default as set forth in Section 9.2 hereof. Transfer" has the meaning set forth in Section 8.2(a) hereof. Unavoidable Delays'", rneans delays beyond the reasonable control of the party seeking to be excused as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local goverm-nental unit (other than the Authority or City in exercising their rights under this Agreement), including without limitation conderrination or threat of condemnation of any portion of the Redevelopment Property, which directly result in delays. Unavoidable Delays shall not include delays experienced by the Redeveloper in obtaining perrnits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under Section 4.3 of this Agreement, so long as the Construction Plans have been approved in accordance with Section 4.2 hereof. The rernainder of this page is intentionally left blank) 4 487056v4 MNI CL205-65 IfWW"" Representations and Warranties Section 2.1. Representations by the_Aqth9dty. (a) The Authority is an economic development authority duly organized and existing under the laws of the State. Under the provisions of the Act and the I.-IRA Act, the Authority has the power to enter into this Agreement and carry out its obligations, hereunder. b) The Authority will use its best efforts to facilitate development of the Minimum Improvernents, including but not limited to cooperating with the Redeveloper in obtaining necessary administrative and land use approvals and construction financing pursuant to Section 7.1 bereof c) The Authority will issue the Note, subject to all the terms and conditions of this Agreement. d) The activities of the Authority are undertaken for the purpose of fostering the redevelopment of certain real property that is occupied by substandard and obsolete buildings, which will revitalize this portion of the Project Area, increase tax base, and provide additional services to City residents, Section 2.2. Representations and Warranties by the Redeveloper, The Redeveloper represents and warrants that. a) The Redeveloper is a corporation, duly incorporated and in good standing under the laws of the State of Iowa, is not in violation of any provisions of its articles of incorporation or bylaws, is duly qualified as a foreign corporation and authorized to transact business within the State, has power to enter into this Agreement and has duly authorized the execution, delivery, and performance of this Agreement by proper action of its officers. b) If the conditions precedent to construction occur, the Redeveloper will construct the Minimum Improvements in accordance with the terms of this, Agreement, the Redevelopment Plan and all local, state and federal laws and regulations (including, but not limited to, environmental, zoning, building code and public health laws and regulations). c) The Redeveloper will use commercially reasonable efforts to secure all pert-nits, licenses and approvals necessary for construction of the Minimum Improvements. d) The Redeveloper has received no written notice or other written communication from any local, state or federal official that the activities of the Redeveloper or the Authority in the Project Area may be or will be in violation of any environmental law or regulation (other than those notices or communications of which the Authority is aware), The Redeveloper is 5 487056v4 MNI 0-205-05 aware of no facts the existence of which would cause it to be in violation of or give any person a valid claim under any local, state or federal environmental law, regulation or review procedure. e) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terns and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of the terns, conditions or provisions of any corporate 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 a default under any of the foregoing. f) The proposed development by the Redeveloper hereunder would not occur but for the tax increment financing assistance being provided by the Authority hereunder. The remainder of this page is intentionally left blank.) 6 4870 56v4 MNI C1.205-65 0. IMBIXfJORUIM Section 3.1. Status of Redevelopment Property. The Redevelopment Property consists of the Parcels described in Schedule A, As of the date of this Agreement the Redeveloper has entered into purchase agreements to acquire all Parcels of the Redevelopment Property. The Authority has no obligation to acquire the Redevelopment Property, Section 3.2. Environmental Conditions. (a) The Redeveloper acknowledges that the Authority makes no representations or warranties as to the condition of the soils or existing structures on the Redevelopment Property or the fitness of the Redevelopment Property for construction of the Minimum Improvements or any other purpose for which the Redeveloper may make use of such property, and that the assistance provided to the Redeveloper under this Agreement neither implies any responsibility by the Authority or the City for any contamination of the Redevelopment Property nor imposes any obligation on such parties to participate in any cleanup of the Redevelopment Property. c) Without limiting its obligations under Section 83 of this Agreement the Redeveloper further agrees that it will indemnify, defend, and hold hanuless the Authority, the City, and their governing body members, officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants existing on or in the Redevelopment Property (including without limitation any asbestos in any existing building), unless and to the extent that such hazardous wastes or pollutants are present as a result of the actions or omissions of the indernnitees. Nothing in this section will be construed to limit or affect any limitations on liability of the City or Authority under State or federal law, including without limitation Minnesota. Statutes Sections 466.04 and 604.02. Section 3.3. Issuance of Note. (a) GenerallY. The Authority has determined that, in order to make development of the Minimurn Improvements financially feasible, it is necessary to reimburse Redeveloper for a portion of the cost of demolition, site preparation, and environmental remediation. (collectively referred to as "Redevelopment Costs"), related to the Redevelopment Property, subject to the terms of this Section. b) Ternis, To reimburse the Redevelopment Costs incurred by Redeveloper, the Authority shall issue and the Redeveloper shall purchase the Note in the maximum principal amount of$1,100,000. The Authority shall issue and deliver the Note upon Redeveloper having: i) delivered to the Authority written evidence satisfactory to the Authority that Redeveloper has incurred Redevelopment Costs in an amount least equal to the principal amount of the Note, which evidence must include copies of the paid invoices or other comparable evidence for costs of allowable Redevelopment Costs; ii) submitted evidence of internal financing in accordance with Section 7.1; MM 7 487056v4 MCA[ CL205-65 iii) delivered to the Authority an investment letter in a form reasonably satisfactoryactory to the Authority. The terms of the Note will be substantially those: set forth in the form of the Note shown in Schedule B, and the Note will be subject to all terms of the Authorizing Resolution, which is incorporated herein by reference. c) Termination o 'i-ight to Note, All conditions for delivery of the Note must be met by no later than five (5) years after the date of7certification of the TIF District by the County, in compliance with the so-called five-year rule under Section 469.1763, subd. 3(c) of the TIF Act. If the conditions for delivery of the Note are not satisfied by the date described in this paragraph, the City has no further obligations under this Section 3.3. d) Assigninent of` Nate. The Authority acknowledges that the Redeveloper may assign the Note to a third party. The Authority consents to such an assignment, conditioned upon receipt of an investment letter from such third party in a forrn reasonably acceptable to the Authority. e) Qual,flcations, The Redeveloper understands and acknowledges that all Redevelopment Costs must be paid by the Redeveloper and will be reimbursed from Available Tax Increment pursuant to the terms of the Note. The Authority makes no representations or warranties regarding the amount of Tax Increment, or that revenues pledged to the Note will be sufficient to pay the principal and interest on the Note. Any estimates of "Fax Increment prepared by the Authority or its financial advisors in connection with the TIF District or this Agreement are for the benefit of the Authority, and are not intended as representations, on which the Redeveloper may rely. Redevelopment Costs exceeding the principal amount of the Note are the sole responsibility of Redeveloper. Section 3.4. Business Subsidy. The Redeveloper warrants and represents that the Redeveloper's investment in the purchase of the Redevelopment Property and in site preparation equals at least 70% of the County assessor's finalized market value of the Redevelopment Property for the 2016 assessment year, calculated as follows: Aggregate cost of acquisition of'Redevelopment Property...,.,,.. $3,850,000 Plus Estimated cost of site preparation,,.... $2,305,000 Less site preparation costs reimbursed by the Authority...,.. E'quals net land and site preparation cost., ... ...... Assessor's finalized market value of Redevelopment Property (2016).... 487O5Ov4 MM 01,205-65 1,100,000) 5,055,000 S4,200,000 5,055,,O00 (net acquisition and site preparation cost) is 120.36% of $4,200,000 assessor's finalized fair market value of the Redevelopment Property for 2016). Accordingly, the parties agree and understand that the financial assistance described in this Agreement does not constitute a business subsidy within the meaning of the Business Subsidy Act, The Redeveloper releases and waives any claim against the Authority and its governing body members, officers, agents, servants and employees thereof arising fn-orn application of the Business Subsidy Act to this Agreement, including without limitation any claim that the Authority failed to comply with the Business Subsidy Act with respect to this Agreerrient. Section 3.5. Payment of Authority Costs. The Redeveloper agrees that it will pay, within fifteen (l 5) days after written notice froni the Authority, the reasonable costs of consultants and attorneys retained by the Authority in connection with the creation of the TIF District and the negotiation in preparation of this Agreement and other incidental agreements and documents related to the development contemplated hereunder. The Authority will provide written reports describing the costs accrued under this Section upon request fi-orn the Redeveloper, but not more often than intervals of forty-five (45) days. Any amount deposited by the Redeveloper upon filling its application for tax increment financing with the Authority will be credited to the Redeveloper's obligation under this Section. Upon termination of this Agreement in accordance with its terms, the Redeveloper remains obligated Linder this section for costs incurred through the eff'ective date of termination. The remainder ofthis page is intentionally left blank.) 9 487056v4 MNI CL205-65 Construction of Minimum Improvements Section 4,1 , Construction of Improvements, Subject to its acquisition of the Redevelopment Property, the Redeveloper agrees that it will construct or cause construction of the Minimum Improvements on the Redevelopment Property in accordance with the approved Construction Plans and that it will, during the term of this Agreement, during any period while the Redeveloper retains ownership of any portion of the Minimum Improvements, operate and maintain, preserve and keep the Minimum Improvements or cause the Minimum Improvements to be maintained, preserved and kept with the appurtenances and every part and parcel thereof, in good repair and condition. Section 4.2. Construction Plans, (a) Before commencing construction of the Minimum Improvements, the Redeveloper shall submit to the Authority Construction Plans for the Minimum Improvements. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in conformity with this Agreement, the Redevelopment Plan and all applicable State and local laws and regulations. The Authority will approve the Construction Plans in writing if (i) the Construction Plans conform to all terms and conditions of this Agreement; (ii) the Construction Plans conform to the goals and objectives of the Redevelopment Plan; (iii) the Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iv) the Construction Plans are adequate to provide for Construction of the Minfinurn Improvements; and (v) no uncured Event of Default on the part of the Redeveloper has occurred. No approval by the Authority shall relieve the Redeveloper of the obligation to comply with the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements in accordance therewith. Except as otherwise set forth herein, no approval by the Authority shall constitute a waiver of an Event of Default. If approval of the Construction Plans is requested by the Redeveloper in writing at the time of submission, such Construction Plans shall be deemed approved unless rejected in writing by the Authority, in whole or in part. Such rejections shall set forth in detail the reasons therefor based upon the criteria set forth in (i) through (v) above, and shall be made within ten (10) days after the date of receipt of final plans from the Redeveloper. If the Authority rejects any Construction Plans in whole or in part, the Redeveloper shall submit new or corrected Construction Plans within a commercially reasonable period after written notification to the Redeveloper of the rejection. Tile provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction. Plans have been approved by the Authority. The Authority's approval shall not be unreasonably withheld. Said approval shall constitute a conclusive determination that the Construction Plans (and the Minimum Improvements, constructed in accordance with said plans) comply to the Authority's satisfaction with the provisions of this Agreement relating thereto, The Redeveloper hereby waives any and all claims and causes of action whatsoever resulting from the review of the Construction Plans by the Authority and/or any changes in the Construction Plans requested by the Authority, except those related to the Authority's obligation 10 487056v4 NINI CL-205-65 not to unreasonably withhold approval of such plans. Neither the Authority, the City, nor any employee or official of the Authority or City shall be responsible in any manner whatsoever for any defect In the Construction Plans or in any work done pursuant to the Construction Plans, including changes requested by the Authority. b) If the Redeveloper desires to make any material change in the Construction Plans or any component thereof after their approval by the Authority, the Redeveloper shall submit tile proposed change to the Authority for its apprcoval. For the purpose of this section, the term material" means changes that are reasonably anticipated by the Redeveloper to increase or decrease construction costs by $ 1,000,00,0 or more. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved Construction Plans, the Authority shall approve the proposed change and notify the Redeveloper in writing of its approval. Such change in the Construction Flans shall, in any event, be deemed approved by the Authority unless rejected, in whole or in part, by written notice by the Authority to the Redeveloper, setting forth in detail the reasons therefor. Such rejection shall be made within ten (10) days after receipt of the notice of such change. The Authority's approval of any such change in the Construction Plans will not be unreasonably withheld. Section 4.3. Commencement and Completion of Construction. (a) Subject to Unavoidable Delays, the Redeveloper shall commence construction of the Minimum Irnproven,ients by June 1, 2018. Subject to Unavoidable Delays, the Redeveloper shall complete the construction of the Minimurn Improvements by July 1, 2019. , All work with respect to the Minimum Improvements to be constructed or provided by the Redeveloper oil tile Redevelopment Property shall be in conformity with the Construction Plans as submitted by the Redeveloper and approved by the Authority, subject to non-material changes not subject to review and approval by the Authority. b) The Redeveloper agrees for itself, its successors, and assigns, and every successor in interest to the Redevelopment Property, or any part thereof, that the Redeveloper, and such successors and assigns, shall promptly begin and diligently prosecute to completion the development of the Redevelopment Property through the construction of the Minimum Improvements thereon, and that such construction shall in any event be commenced and completed within the period specified in this Section 4.3 of this Agreement, After the date of this Agreement and until issuance of the Certificate of Completion, the Redeveloper shall make reports, in such detail and at such times as may reasonably be requested by the Authority, but no more frequently than monthly, as to the actual progress of the Redeveloper with respect to such. construction. Section 4.4. Certificate of Completion. (a) Promptly after completion of the Minimum Improvements in accordance with those provisions, of the Agreement relating solely to the obligations of the Redeveloper to construct the Minimum Improvements (including the dates for beginning, and completion thereof), the Authority Representative shall deliver to the Redeveloper a Certificate in substantially the fon-n shown as Schedule C, in recordable forill and executed by the Authority. Such certification by the Authority shall be a conclusive deternlination of the satisfaction and termination of the agreements, covenants and conditions of Articles III and IV of 487056v4 MNI CL205-65 this Agreement related to construction of the Minimum Improvements and the dates of commencement and completion thereof. b) If the Authority Representative shall refuse or fail to provide any certification in accordance with the provisions of this Section 4.4 of this Agreement, the Authority Representative shall, within twenty (20) days after receipt of a written request by the Redeveloper, provide the Redeveloper with a written statement, indicating in adequate detail in what respects the Redeveloper has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the reasonable opinion of the Authority, for the Redeveloper to take or perform in order for the Authority to issue the Certificate of Completion. If the Authority fails to provide such a written statement within twenty (20) days after receipt of such written request, the Authority shall be deemed to have waived its right to do so and shall be deemed to have issued a Certificate of Completion to the Redeveloper. c) The construction of the Minimum. Improvements shall be deemed to be substantially complete upon issuance of a certificate of occupancy for the Minimum Improvements, and upon determination by the Authority Representative that all related site improvements on the Redevelopment Property have been substantially completed in accordance with approved Construction Plans, subject to landscaping that cannot be completed until seasonal conditions permit. The rernainder of this page is intentionally left blank.) 12 487056A MNJ ('1-205-65 ARTICLE V Section 5.1. Insurance. (a) The Redeveloper will provide and maintain at all times during the process of constructing the Minimum Improvements a Special Forin Basis insurance Policy and, froin time to time during that period, at the request of the Authority but no more frequently than annually, furnish the Authority with proof of payment of premiums on policies covering the following: 1) Builder's risk insurance, written oil the so-,called "Builder's Risk -- Completed Value Basis," in an amount equal to 100% of the principal amount of the Note, and with coverage available in reporting form on the so-called "special" form of policy; ii) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations, and contractual liability insurance) with lirmts against bodily injury and property damage of not less than 1,0,00,000 for each occurrence (to accomplish the above-required limits, all umbrella excess liability policy ri-my be used), and iii) Workers' compensation insurance, with statutory coverage, provided that the Redeveloper may be self-insured with respect to all or any part of its liability for workers' compensation. b) Upon completion of construction of the Minimum Improvements and prior to the Termination Date, the Redeveloper shall ri-taintain, or cause to be maintained, at its cost and expense, and frorn, time to time at the request of the Authority, but no more frequently than annually, shall furnish proof of the payment of premiums on, insurance as follows-, i) Insurance against loss and/or damage to the Minirnurn Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses. ii) Comprehensive general public liability insurance, Including personal injury liability, against liability for injuries to persons and/or property, in the rninimurn amount for each occurrence and for each year of $ 1,000,000. iii) Workers' compensation insurance with statutory coverage. c) All insurance required in Article V of this Agreement shall be taken out and maintained in responsible insurance companies selected by the Redeveloper that are authorized under the laws of the State to assume the risks covered thereby. Upon request, the Redeveloper will deposit annually with the Authority a certificate or certificates of insurance stating that such insurance is in force and effect. In lieu of separate policies, the Redeveloper may maintain a 13 487056v4 MNI C'1205-65 single policy, blanket or umbrella policies, or a cornbination thereof, having the coverage required herein, in which event the Redeveloper shall deposit with the Authority a certificate or certificates of the respective insurers as tca the amount of coverage in force upon the MirumUrn Improvements, d) The Redeveloper agrees to notify the Authority immediately in the case of damage exceeding $250,000 in amount to, or destruction of, the Minimum Improvernents or any portion thereof resulting from fire or other casualty. In such event the Redeveloper will forthwith repair, reconstruct, and restore the Minimum Improvements to substantially the same or an improved condition or value as it existed prior to the event causing such damage and., to the extent necessary to accomplish such repair, reconstruction, and restoration, the Redeveloper will apply the net proceeds of"any insurance relating to such damage received by the Redeveloper to the payment or reimbursement of the costs thereof. The Redeveloper shall complete the repair, reconstruction and restoration of the Minimurn Improvements, regardless of whether the net proceeds of insurance received by the Redeveloper for such purposes are sufficient to pay for the same. Any net proceeds remaining after completion of such repairs, construction, and restoration shall be the property of the Redeveloper. e) Notwithstanding the foregoing, in lieu of its obligation to reconstruct the Minimum. Improvements as set forth in this Section, the Redeveloper shall have the option of. i) paying to the Authority an amount that, in the opinion of the Authority and its fiscal consultant, is sufficient to pay or redeem the outstanding principal and accrued interest on the Note, or (ii) so long as the Redeveloper is the owner of the Note, waiving its right to receive subsequent payments under the Note. 0 The Redeveloper and the Authority agree that all of the insurance provisions set forth in this Article 'V shall ten-ninate upon the Termination Date of this Age-eernent. The remainder of this page is intentionally left blank.) 14 487056A MNI CL205-65 F-WRYWRAW Fax Increment; Taxes Section 6. 1, Right to Collect Delinquent Taxes, The Redeveloper acknowledges that the Authority is providing substantial aid and assistance in furtherance of the development through reimbursement of Redevelopment Costs. The Redeveloper understands that the Tax Increments pledged to payment on the Note are derived from real estate taxes on the Redevelopment Property, which taxes must be promptly and timely paid. To that end, the Redeveloper agrees for itself, its successors and assigns, that in addition to the obligation pursuant to statute to pay real estate taxes, it is also obligated by reason of this Agreement to pay before delinquency all real estate taxes assessed against the Redevelopment Property and the Minimum Improvements. The Redeveloper acknowledges that this obligation creates a contractual right on behalf of the Authority to sue the Redeveloper or its successors and assigns to collect delinquent real estate taxes and any penalty or interest thereon and to pay over the same as a tax payment to the county auditor. In any such suit in which the Authority prevails, the Authority shall also be entitled to recover its reasonable out-of-pocket costs, expenses and reasonable attorney fees. Section 6.2, Review of Taxes. (a) The Redeveloper agrees that prior to the Termination Date, it will not cause a reduction in the real estate taxes paid in respect of the Redevelopment Property through: (A) willful destruction of any part of the Redevelopment Property; or (B) willful refusal to reconstruct damaged or destroyed property pursuant to Section 5.1 of this Agreement, except as provided in Section 5.1(e). The Redeveloper also agrees, that it will not, prior to the Termination Date, seek exemption from real estate tax for the Redevelopment Property or any portion thereof or transfer or permit the transfer of the Redevelopment Property to any entity that is exempt from real estate taxes under state law (other than any portion thereof dedicated or conveyed to the City in accordance with platting of the Redevelopment Property), or apply for a deferral of real estate taxes on the Redevelopment Property pursuant to any law. b) Notwithstanding anything to the contrary in this Article VI, the Redeveloper shall have the right, subject to all applicable laws (including payment of such real estate taxes during any applicable appeal period) to contest the legality, validity, or arriount of the real estate taxes levied against the Minimum Improvements and/or the Redevelopment Property. The Redeveloper shall notify the Authority of any such contest within thirty (30) days of the commencement of such contest. During the pendency of any such contest, the Authority shall suspend payments of all principal and interest derived from Available Tax Increment attributable to the contested period and payable to the Redeveloper under the Note. c) Upon final determination of any contest resulting in a finding that the assessed value of the Redevelopment Property is unchanged, the Redeveloper shall promptly pay and discharge the amounts involved or affected by such determination, together with any penalties, fines, interest, costs, and expenses that may have accrued thereon, and the Authority shall promptly pay to the Redeveloper all principal and interest withheld under the Note, without penalty or interest. If, as a result of such contest, the assessed value of the Redevelopment Property is reduced, the Authority shall remit to the County any amounts of Available Tax 15 487056N14 M N I CL205-65 Increment determined to exceed the amount due based oil the reduced real estate taxes payable by the Redeveloper, and shall promptly pay to the Redeveloper all principal and interest withheld under the Note, less such Available Tax Increment remitted to the County. d) The Redeveloper understands that a reduction in the amount of real estate taxes determined to be payable with respect to the RedeVelOPITIent property will reduce the amount of Available Tax Increment available to pay principal and interest on the Note, and further understands that the Note is a limited obligation of the Authority payable solely from Available Tax Increment, such that reductions in Available Tax Increment may adversely affect the Authority's ability to fully pay all principal and interest under the Note. The remainder of this page is intentionally left blank.) 16 4870560 MN I CL205-65 ARTICLE VII Other Fiaancing Section 7.1. Internal Financj!y,. The Redeveloper intends to finance the acquisition of the Redevelopment Property and construction of the Minimum Improvements internally, and shall provide the Authority with an affidavit or other instrument reasonably acceptable to the Authority, certifying as to the sufficiency of Redeveloper funds to acquire the Redevelopment Property and to construct the Minimum Improvements thereon- provided, however, that the Authority shall not be entitled to receive a copy of Redeveloper's audited financial statements. The remainder of this page is intentionally left blank.) 17 487056N,4 MNI CL205-65 ARTICLE Vill Prohibitions Ap-ainst Assi2nment and Transfer- I111demnificationI -1 Section 8. 1 . Representation as to Developmeat. The Redeveloper represents and agrees that its purchase of the Redevelopment Property, and its other undertakings pursuant to the Agreement, are, and will be used, for the purpose of development of the Redevelopment Property and not for speculation in land holding. Section 8.2. Prohibition AgLainst Redeveloper's Transfer ofPr2perty and Assignment of Ag6reement. The Redeveloper represents and agrees that prior to issuance of a Certificate of Completion for all ofthe Minimum Improvements: a) Except only by way of security for, and only for, the purpose of obtaining financing necessary to enable the Redeveloper or any successor in interest to the Redevelopment Property, or any part thereof, to perform its obligations with respect to undertaking the redevelopment contemplated under this Agreement, and any other purpose authorized by this Agreement, the Redeveloper has not made or created and will not make 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 form of or with respect to this Agreement or the Redevelopment Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity whether or not related in any way to the Redeveloper (collectively, a "Transfer' "), without the prior written approval of the Authority (whose approval will not be unreasonably withheld, subject to the standards described in paragraph (b) of this Section) unless the Redeveloper remains liable and bound by this Redevelopment Agreement in which event the Authority's approval is not required. Any such Transfer shall be subject to the provisions of this Agreement. For the purposes of this Agreement, the term Transfer does not include 1) acquisition of a controlling interest in Redeveloper by another entity or merger of Redeveloper with another entity; (ii) any sale, conveyance, or transfer in any form to any Affiliate; or (iii) any license or lease of all or any portion of the Minimum Improvements to a tenant. b) In the event that prior to the Tenlaination Date, the Redeveloper, upon Transfer of the Redevelopment Property or any portion thereof, seeks to be released from its obligations under this Redevelopment Agreement as to the portions of the Redevelopment Property that is transferred, the Authority shall be entitled to require, except as otherwise provided in the Agreement, as conditions to any such release that: 1) Any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Authority, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Redeveloper as to the portion of the Redevelopment Property to be transferred. ii) Any proposed transferee, by instrument in writing satisfactory to the Authority and in forril recordable in the public land records of Anoka County, Minnesota, 18 4870 6v4 MNI ("1205-65 shall, for itself and its successors and assigns, and expressly for the benefit of the Authority, have expressly assumed all of the obligations of the Redeveloper under this Agreement as to the portion of the Redevelopment Property 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 transferee of, or any other successor in interest whatsoever to, the Redevelopment Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not 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 the Redevelopment Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent pennitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Redevelopment Property or any part thereof, or any interest therein, however consurnmated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit the Authority of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Redevelopment Property that the Authority would have had, had there been no such transfer or change. In the absence of specific written agreement by the Authority to the contrary, no such transfer or approval by the Authority thereof shall be deemed to relieve the Redeveloper, or any other party bound in any way by this Agreement or otherwise with respect to the Redevelopment Property, from any of its obligations with respect thereto. 111) Any and a.11 instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Redevelopment Property governed by this Article VIII, shall be in a form reasonably satisfactory to the Authority. iv) At the written request of Redeveloper, the Authority shall execute and deliver to Redeveloper and the proposed transferee an estoppel certificate containing commercially customary and reasonable certifications. In the event the foregoing conditions are satisfied then the Redeveloper shall be released from its obligation under this Agreement, as to the portion of the Redevelopment Property that is transferred, assigned, or otherwise conveyed. Section 8.3. Release and Indemnification Covenants. (a) Except for any willful misrepresentation or any willful or wanton misconduct or negligence of the Indeninified Parties as hereinafter defined, and except for any breach by any of the Indernnified Parties of their obligations under this Agreement, the Redeveloper releases from and covenants and agrees that the Authority, the City, and the governing body members, officers, agents, servants, and employees thereof (the "Indemnified Parties") shall not be liable for and agrees to indemnify and hold harmless the Indemnified Parties against any loss or darnage to property or any iqJury to or death of any person occurring at or about or resulting from any defect in the Redevelopment Property or the Minimum Improvements, 19 487056v4 MNI (1-205-65 b) Except for any willful misrepresentation or any willfijl or wanton misconduct or negligence of the Indernnified Parties, and except for any breach by any of the Indemnified parties of their obligations tinder this Agreement (including without limitation any failure by the Authority to perform any procedure required under law in connection with establishment of the TIF District), the Redeveloper agrees to protect and defend the Indemnified Parties, now and forever, and further agrees to hold the aforesaid harmless from any claim, demand, suit, action, or other proceeding whatsoever by any person or entity whatsoever arising or purportedly arising frorn this Agreetrient, or the transactions contemplated hereby or the acquisition, construction, installation, ownership, maintenance, and operation of the Redeveloptnent Property. e) Except for any willful misrepresentation or any willful or wanton misconduct or negligence of the Indemnified Parties as hereinafter defined, and except for any breach by any of the Indemnified Parties of their obligations under this Agreement, the Indemnified Parties shall not be liable for any damage or injury to the persons or property of the Redeveloper or its officers, agents, servants, or employees or any other person who may be about the Redevelopment Property or Miniinum Improvements. d) All covenants, stipulations, prounises, agreements and obligations of the Authority contained herein shall be deemed to be the covenants, stipulations, prontises, agreements, and obligations of such entity and not of any governing body member, officer, agent, servant, or employee of such entities in the individual capacity thereof. The remainder of this page is intentionally left blank,) 20 487(,)56v4 MNI C1.205-65 Events of Default Section 9.1. Events of Default Defined. The following shall be "I..,vents of Default" under this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement, any one or more of the following events, after the non-defaulting party provides thirty (30) days written notice to the defaulting party of the event, but only if the event has not been cured within said thirty (3,0) days or, if the event is by its nature incurable within thirty (30) days, the defaulting party does not, within such. thirty-day period, provide assurances reasonably satisfactory to the party providing notice of default that the event will be cured and will be cured as soon as reasonably possible: a), Failure by the Redeveloper or Authority to observe or perforin any covenant, condition, obligation, or agreement on its part to be observed or perfon-ned under this Agreement. b) If, before issuance of the certificate of completion for all the Minimum Improvements, the Redeveloper shall i) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act or under any similar federal or State law, which action is not dismissed within sixty (60) days after filing; or 01' ii) make an assignment for benefit of its creditors; or iii) adrnit in writing its inability to pay its debts generally as they become due, iv) be adjudicated a bankrupt or insolvent, Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section 9.1 of this Agreement occurs, the non-defaulting party may: a) Suspend its performance under this Agreement until it receives assurances that the defaulting party will cure its default and continue its performance under the Agreement, b) Upon a default by the Redeveloper under this Agreement, the Authority may terminate the Note and this Agreement. c) Take whatever action, including legal, equitable, or administrative action, which may appear necessary or desirable to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant under this 21 4870560 MNI CL205-65 Agreement, provided that nothing contained herein shall give the Authority the right to seek specific performance by Redeveloper of the construction of the Minirrium Improvements, Section 9.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to any party is intended to be exclusive of any other available remedy or remedies, but each and every, such remedy shall be cun-iulative and shall be in addition to every other rcrnedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised frorn time to time and as often as may be deemed expedient. To entitle the Authority to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article IX. Section 9.4. No Additional Waiver lrxralied lay C rre °+Jaiver. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 9.5. Attorney Fees. Whenever any Event of Default occurs and if the non- defaulting party employs attorneys or incurs other expenses for the collection of payments due or- to become due or for the enforcement of performance or observance of any obligation or agreement on the part of the defaulting party under this Agreement, the defaulting party shall, within ten (10) days of written demand by the non-defaulting party, pay to the non-defaulting party the reasonable fees of such attorneys and such other expenses so incurred by the non- defaulting party, The remainder of this, page is intentionally left blank.) 22 487056A MNI C1205-65 Additional P'rovisions Section 10.1. Conflict of Interests, Representatives Not Individually Liable, The Authority and the Redeveloper, to the best of their respective knowledge, represent and agree that no member, official, or employee of the Authority shall have any personal interest, direct or indirect, in the Agreement, nor shall any such member, official, or employee participate in any decision relating to the Agreement that affects his personal interests or the interests of any corporation, partnership, or association in which he, directly or indirectly, is interested. No, member, official, or employee of the City or Authority shall be personally liable to the Redeveloper, or any successor in interest, in the event of any default or breach by the Authority or for any amount that may become due to the Redeveloper or successor or on any obligations under the ternis of the Agreement. Section 10.2. Equal Employment Opportunity. The Redeveloper, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in the Agreement it will comply with all applicable federal, state, and local equal employment and non-discrimination laws and regulations. Section 103, Restrictions on Use. The Redeveloper agrees that until the Ten-nination Date, the Redeveloper, and such successors and assigns, shall devote the Redevelopment Property to the operation of the Minimum Improvements as described in Section 4.1 hereof, and shall not discriminate upon the basis of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy of the Redevelopment Property or any improvements erected or to be erected thereon, or any part thereof. Section 10A. Provisions Not Merged With Deed. None of the provisions of this Agreement are intended to or shall be inerged by reason of any deed transferring any interest in the Redevelopment Property and any such deed shall not be deerned to affect or impair the provisions and covenants of this Agreement. Section 10.5. Titles of Articles and Sections. Any titles of the several parts, Articles, and Sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 10.6. Notices and Demands, Except as otherwise expressly provided in this Agreement, a notice, demand, or other cornmuni cation under the Agreement by either party to the other shall be sufficiently given or delivered, effective upon actual delivery, if it is dispatched by registered or certified i-nail, postage prepaid, return receipt requested; sent by nationally recognized overnight courier service; or delivered personally; in each case to tile following addresses (or to such other addresses as either party may notify the other): 23 4870566 MNI CL205-65 To Redeveloper: fly-Vee, Inc. Attn: Legal Department 5820 Westown Parkway West Des Moines, Iowa 50266 To Authority: Columbia Heights Economic Development Authority Attn: Executive Director 590 40'h Avenue NE Columbia Heights, Minnesota 55421-3835 Section 10.7. Counterparts. This Agreement may be executed in any number of' counterparts, each of which shall constitute one and the same instrument. Section 10.8. Recording. The Authority may record this Agreement and any amendments thereto with the Anoka County recorder. The Redeveloper shall pay all costs for recording. The Redeveloper's obligations under this Agreement are covenants running, with the land for the teem of this Agreement, enforceable by the Authority against the Redeveloper, its successor and assigns, and every successor in interest to the Redevelopment Property, or any Part thereof or any interest therein. Section 1 O,9 Amendment. This Agreement may be amended only by written agreement signed by the Authority and the Redeveloper, Section 10.10. Authority Approval . Unless otherwise specified, any approval required by the Authority under this Agreement may be given by the Authority Representative, except that final approval Of issuance ol' the Note shall be made by the Authority's board of commissioners. The remainder of this page is intentionally left blank) 24 4870566 MN I CL205-,65 IN WITNESS WHEREOF, the Authority and Redeveloper have caused this Agreement to be duly executed by their duly authorized representatives as of the date first above written, AUTHORITY: UDIVA X RL#j M M Its President By Its Executive Director STATE OF MINNESOTA SS. COUNTY OF ANOKA The foregoing instrument was acknowledged before me this 25j34 day of 2016 by Gary Peterson and Walter Fehst, the President and Executive Director of the Columbia Heights Economic Development Authority, on behalf of the Authority. 25 487056v4 MNJ CL205-65 liblay-01 By J'Offf-e'yA4r'key, Senior Vice President 1-LAt-1,. Nat an Allen, Assistant Secretary STATE OF IOWA SS. COUNTY OF POLK The foregoing instrument was acknowledged before me this day ofl-L. "c y, 2016, by Jeffrey Markey and Nathan Allen, the Senior Vice President and Assistant Secretary, respectively, of Hy-Vee, Inc., an Iowa corporation, on behalf of the corporation, 12 4870566 MNI C'1-205-65 otary Public SCHEDULE A REDEVELOPMENT PROPERTY Lots One (1), Two (2), Three (3), Four (4), Five (5), Six (6), Seven (7), Eight (8), Nine (9),"ren 10), Eleven (11), and Twelve (12), Block One ( 1), and the East 107.3 feet of Lots One (1), Two 2), Three (3), Four (4), Five (5), and Six (6), Block Two (2), All in !Rjeate rr n of Block "A", Columbia Heights Annex to Miqqca lus, according to the recorded plat thereof on file in the office of the Registrar of Deeds in and for Anoka County, Minnesota, together with that part of vacated Jackson Street on said plat described as follows: Commencing at a point 10 feet North of the Southeast corner of said Lot 6, Block 2; thence North a distance of 590 feet, more or less, to the Northeast comer of said Lot 1, Block 2; thence East a distance of 30 feet, rnore or less, to the Northwest comer of said Lot 12, Block 1; thence South a distance of 590 feet, more or less, to a point 10 feet North of the Southwest corner of said Lot 7, Block 1: thence West a distance of 30 feet, more or less, to the point of beginning and there ten-ninating. A-] 487056v4 MNI ('1205-65 7 AUTHORIZING RESOLUTION X63 RIMI OEM 111t,16"111CISIM941 RESOLUTION AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS TAX INCREMENT REVENUE NOTE, SERIES 20'— TO HY-VEE, INC. BE ITRESOLVI.?D BY the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority, Columbia Heights, Minnesota (the "Authority") as follows: Section 1. Authorization; Award of Sale. 1.01. Authorization. The Authority and the City of Columbia Heights have heretofore approved the establishinent of its Central Valu Center Tax Increment Financing District (the TIF District") within the Downtown Central Business Redevelopi-fient Project (*Project"), and have adopted a tax increment financing plan for the purpose of financing certain improvenients within the Project. Pursuant to Minnesota Statutes, Section 469.178, the Authority is authorized to issue and sell its bonds for the purpose of financing a portion of the public development costs of the Project. Such bonds are payable from all or any portion of revenues derived from the TIF District and pledged to the payment of the bonds. The Authority hereby finds and determines that it is in the best interests of the Authority that it issue and sell its Tax Increment Revenue Note, Series 20'— (the "Note") for the purpose of financing certain eligible redevelopment costs of the Proj ect. 1.02. Approval of Contract-, Issuance, Sate, and Terms of the Note, (a) The Authority on this date has considered a Contract for Private Redevelopment (the "Agreement") between the Authority and Hy-Vee, Inc. (the "Owner"). The Authority hereby approves the Agreement and authorizes the President and Executive Director of the Authority to execute such Agreement in substantially the form on file with the Authority, subject to modifications that do not alter the substance of the transaction and are approved by such officials, provided that execution of the Agreement by such officials is conclusive evidence of their approval. All capitalized terins in this resolution have the meaning provided in the Agreement unless the context requires otherwise. B-1 487056v4 NINI (1,205-65 b) 'I"'he Authority hereby authorizes the President and Executive Director to issue the Note in accordance with the terrors of the Agreement, c) The Note shall be issued in the maxii-num aggregate principal amount of $ ]j 00,00O to fly-Vee, Inc. (the "Owner") in consideration of certain eligible Redevelopment Costs incurred by the Owner under the Agreement, shall be dated the date of delivery thereof, and shall bear simple interest at the rate of 5.0%, frorn the date ofissue per arinurn to the earlier of ii'laturity or prepayment. The Note will be issued in the principal amount of Redevelopment Costs submitted and approved in accordance with Section 3.3 of the Agreement. The Note is secured by Available Tax Increment, as further described in the forrn of the Note herein. The Authority hereby delegates to the Executive Director the deten-nination of the date on which the Note is to be delivered, in accordance with the Agreement. Section 2. Forrn of Note, The Note shall be in substantially the following form, with the blanks, to be properly filled in and the principal arnount adjusted as of the date of issue: The remainder of this page is intentionally left blank,) B-2 4870560 MNI CL-)05-65 No. R-1 UNITED STATE OF AMERICA STATE OF MINNESOTA COLJNTY OF HENNEPIN COLUMBIA I-1EIGHTS ECONOMIC'.. .. DEVELOPMENT AUTHORITY TAX INCREMENT REVENUE NOTE SERIES 20___ Date Rate of Origiijal Issue 5.0% 120 The Columbia Heights Economic Development Authority (the "Authority") for value received, certifies that it is indebted and hereby promises to pay to Hy-Vee, Inc. or registered assigns (the "Omfner"), the principal sum of" $ - and to pay interest thereon at the rate of five percent (5.0%) per annum, solely from the sources and to the extent set forth herein. Capitalized terms shall have the meanings provided in the Contract for Private Redevelopment between the Authority and the Owner, dated as of .._........m 2016 (the "Agreement"), unless the context requires otherwise. 1. Payments. Principal and interest ("Payments") shall be paid on August I of the first calendar year in which Available Tax Increment has been paid to the Authority by Anoka County, and on each February I and August I thereafter to and including February I of the calendar year ten years following the first Payment ("Payment Dates") in the amounts and from the sources set forth in Section 3 herein. Payments shall be applied first to accrued interest, and then to unpaid principal. Simple interest shall accrue from the date of issue through and including the first February I Payment Date. Payments are payable by mail to the address of the Owner or such other address as the Owner may designate upon thirty (30) days written notice to the Authority. Payments on this Note are payable in any coin or currency of the United States of At-rierica which, on the Payment Date, is legal tender for the payi-nent of public and private debts, 2. Interest. Interest at the rate stated herein shall accrue on the unpaid principal, commencing on the date of original issue. Interest shall be computed on the basis of a year of 360 days consisting of 12 months of 30 days, and charged for actual days principal is unpaid. 3. Available Tax Increment. (a) Payments on this Note are payable on each Payment Date solely frorn and in the amount of Available Tax Increment, which shall rnean, on each Payment Date, Ninety percent (90%) of the Tax Increment attributable to the Minimum B-3 487056NA MNI CL205-65 Improvements and Redevelopment Property that is paid to the Authority by Anoka County iri the six months preceding the Payment Date, b) The Authority shall have no obligation to pay principal of and interest on this Note on each Payment Date from any source other than Available Tax Increment and the failure of file Authority to pay the entire arnount of principal or interest on this Note oil any Payment Date shall not constitute a default hereunder as long as the Authority pays principal and interest hereon to the extent of Available Tax Increment, The Authority shall have no obligation to pay any unpaid balance of principal or accrued interest that may remain after the final February I Payment, 4. Default, If on any Payment Date there has occurred and is continuing any Event of Default under the Agreement, the Authority may withhold frorn payments hereunder under all Available Tax Increment. If the Event of Default is thereafter cured in accordance with the Agreement, the Available Tax Increment withheld under this Section shall be deferred and paid, without interest thereon, within thirty (30) days after the Event of Default is cured. If the Event of Default is not cured in a timely manner, the Authority may ten-ninate this Note by written notice to the Owner in accordance with the Agreement. S. Present. The principal sum and all accrued interest payable under this Note is prepayable in whole or in part at any time by the Authority without premium or penalty, No partial prepayment shall affect the amount or tinning of any other regular Payment otherwise required to be made under this Note. 6. Nature ofDblij)ation, ']'his Note is one of an issue in the total principal amount of issued to aid in financing certain redevelopment costs and administrative costs of a Project undertaken by the Authority pursuant to Minnesota Statutes, Sections 469.001 througI 469.047, and is issued pursuant to an authorizing resolution (the "Resolution") duly adopted by the Authority on 261 , and pursuant to and in full conforrility with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469,174 to 469. 179, as amended. This Note is a limited obligation of the Authority which is payable solely from Available Tax Increment pledged to the payment hereof under the Resolution, This Note and the interest hereon shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority. Neither the State of Minnesota, nor any political subdivision thereof shall be obligated to pay the principal of or interest on this Note or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of or interest on this Note or other costs incident hereto. 7. Registration and Transfer. This Note is issuable only as a fully registered note without coupons. As provided in the Resolution, and subject to certain limitations set forth therein, this Note is transferable upon the books of the Authority kept for that purpose at the principal office of the City Finance Director, by the Owner hereof in person or by such Owner's attorney duly authorized in writing, upon surrender of this Note together with a written instrument of transfer satisfactory to the Authority, duly executed by the Owner. Upon such B-4 4870566,4 MNI CI-205-65 transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the Authority with respect to such transfer or exchange, there will be issued in the name of the transferee a new Note of the same aggregate principal amount, hearing interest at the sarne rate and maturing on the same dates. Except as otherwise provided in Section 3.3(d) of the Agreement, this Note shall not be transferred to any person or entity, unless the Authority has provided written consent to such transfer. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this Note a valid and binding limited obligation of the Authority according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. IN WITNESS WHEREOF, the Board of Commissioners of the Columbia Heights Economic Development Authority have caused this Note to be executed with the manual signatures of its President and Executive Director, all as of the Date of Original Issue specified above. Executive Director B-5 487056v4 MNI CL205-65 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY President REGISTRATION PROVISIONS The ownership of the unpaid balance of the within Note is registered in the bond register of the City Finance Director, in the name of the person last listed below. Date of Registration "Registered Owner 20 Inc. Federal Tax I.D No. 42-0325638 B-6 487056v4 MNI Signature, of City Finance Director Section 3. Terin. -,-ExecutiQijarid Delivery, 3.01. Denomination P The Note shall be Issued as a single typewritten note numbered. R- 1. The Note shall be issuable only in fully registered form. Principal, of and interest on the Note shall be payable by check or draft issued by the Registrar described herein. 3,02. Dates, Interest Payment Dates. Principal of and interest on the Note shall be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not such day is a business day. 3,03, ReiLstration. The Authority hereby appoints the City Finance Director to perform the functions of registrar, transfer agent and paying agent (the "Registrar"), The effect of' registration and the rights and duties of the Authority and the Registrar with respect thereto shall be as follows: a) Re)-i-ster. The Registrar shall keep at its office a bond register in which the Registrar shall provide for the registration of ownership of the Note and the registration of transfers and exchanges of the Note. b) Transfer of Note. Upon surrender for transfer of the. Note duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the name of the designated transferee or transferees, a new Note of a like aggregate principal amount and maturity, as requested by the transferor. Notwithstanding the foregoing, the Note shall not be transferred to any person other than an affiliate, or other related entity, of the Owner unless the Authority has been provided with an opinion of counsel or a certificate of the transferor, in a form satisfactory to the Authority, that such transfer is exerript from registration and prospectus delivery requirements of federal and applicable state securities laws, The Registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each Payment Date and until such Payment Date. c) Cancellation, The Note surrendered upon any transfer shall be promptly cancelled by the Registrar and thereafter disposed of as directed by the Authority. d) Inap-r-oper or -Unauthorized Transfer. When the Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement on such Note or separate instrument of transfer is legally authorized. The Registrar shall incur no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems improper or unauthorized. e) Persons Deemed Owners. The Authority and the Registrar may treat the person in whose narne the Note is at any tirne registered in the bond register as the absolute owner of the Note, whether the Note shall be overdue or not, for the purpose of receiving payment of, or on B-7 487056v4 MNI (A-205-65 account of, the principal of and interest oil such Note and for all other purposes, and all such payments so made to any such registered owner or upon the owner's order shall be valid and effectual to satisfy and discharge the liability of the Authority upon such Note to the extent of the surn or sums so paid. f) Laxes, Fees -and Charges, For every transfer or exchange of the Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse tile Registrar for any tax, fee, or other governmental charge required to be paid with respect to such. transfer or exchange. g) Mutilated, Lost, Stolen or Destroved Note, In case any Note shall 'become mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new Note of like amount, maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated Note or in lieu of and in substitution for such Note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case tile Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that such Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the Authority and the Registrar shall be narned as obligees. The Note so surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be given to the Authority. If the mutilated, lost, stolen, or destroyed Note has already matured or been called for redemption in accordance with its terms, it shall not be necessary to issue a new Note prior to payment, 3.04. Preparation and Delivery. The Note shall be prepared under the direction of the Executive Director and shall be executed on behalf of the Authority by the signatures of its President and Executive Director, In case any officer whose signature shall appear on the Note shall cease to be such officer before the delivery of the Note, such signature shall nevertheless be valid and sufficient for all purposes, the sarne as if such officer had remained in office until delivery. When the Note has been so executed, it shall be delivered by the Executive Director to the Owner thereof in accordance with the Agyeernent. Section 4. Security 4.01. Riedge. The Authority hereby pledges to the payment of the principal of and interest on the Note all Available Tax, Increment as defined in the Note, Available Tax Increment shall be applied to payment of the principal of and interest on the Note in accordance with the terms of the form ofNote set forth in Section 2 of this resolution, 4.02. Bond Fund, Until the date the Note is no longer outstanding and no principal thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the Authority shall maintain a separate and special "Bond Fund" to be used for no purpose other than the payment of the principal of and interest oil tile Note. The Authority irrevocably agrees to appropriate to the Bond Fund on or before each payment Date the Available Tax Increment in an amount equal to the Paynient then due, or the actual Available B-8 497056A NINI CL205-65 Tax Increment, whichever is less. Any Available Tax Increment remaining in the Bond Fund shall be transferred to the Authority's account for the TIF District upon the termination of the Note in accordance with its terns, 4.03. Additional Obligations. The Authority will issue no other obligations secured in whole or in part by Available Tax Increment unless such pledge is on a subordinate basis to the pledge on the Note. Section 5. Certification of.Proeeedin&s, 5.01. Certification of Proceding. The officers of the Authority are hereby authorized and directed to prepare and furnish to the Owner of the Note certified copies of all proceedings and records of the Authority, and such other affidavits, certificates, and infonriation as may be required to show the facts relating to the legality and marketability of the Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all such certified copies, certificates, and affidavits, including any heretofore furnished, shall be deemed representations of the Authority as to the facts recited therein, Section 6. Effective Date. This resolution shall be effective upon approval. Adopted by the Board of Commissioners of the Columbia Heights Economic Development Authority this _ day of 2016, President ATTEST Secretary B-9 487056v4 Mill CL205-65 OW91411INSM, The remainder of this page is intentionally left blank.) C-1 487056A MNI CL.205-65 CERTIFICATE OF COMPLETION WHEREAS, the Columbia Heights Economic Development Authority (the "Authority") and HY-VEE, INC. (the "Redeveloper") entered into a certain Contract for Private Redevelopment dated October 24, 2016 (the "Contract"), and WHEREAS, the Contract contains certain covenants and restrictions set forth in Articles III and IV thereof related to completing certain Minimum Improvements; and WHEREAS, the Redeveloper has performed said covenants and conditions insofar as it is able in a manner deemed sufficient by the Authority to pern-ift the execution and recording of this certification; NOW, THEREFORE, this is to certify that all construction and other physical improvements related to the Minimurn Improvements specified to be done and made by the Redeveloper have been completed and the agreements and covenants in Articles Ill and IV of the Contract have been performed by the Redeveloper, and this Certificate is intended to be a conclusive determination of the satisfactory termination of the covenants and conditions of Articles Ill and IV of the Contract related to completion of the Minimum Improvements, but any other covenants in the Contract shall remain in full force and effect until the Tennination Date as defined in the Contract). The remainder of this page intentionally lefl blank.) C-2 487056v4 NINI CLIO 65 Dated: 20 COLUMBIA HEIGHTS ECONOMIC;' DEVELOPMENT AUTHORITY 0 STATE OF M IN'NESOTA ss. COUNTY OF ANN Authority Representative The foregoing instrument was acknowledged before me this day of .................. 20_ by _._ - - - -------- --} the of the Colurnbia Heights Econornic Development Authority, on behalf of the Authority. Notary Public This document drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plaza Minneapolis, Minnesota 55402 612,) 337-9300 C ®3 487056A MN I C1.205-65