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HomeMy WebLinkAboutEDA Resolution No. 2023-24RESOTUTTON NO. 2023-24 A RESOLUTION APPROVING THE PURCHASE AGREEMENT BETWEEN THE ECONOMIC DEVETOPMENT AUTHORITY OF COLUMBIA HEIGHTS, MINNESOTA, AND MPH CENTRAL TLC, AND ESTABLISHING FUNDING PROCEOURES FOR THE PURCHASE AND DEMOLITION OF THE PROPERTIES BE lT RESOLVED BY the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority (the "Authority") as follows: sEciloN 1. RECrrArS. 1.01. The Authority and Mph Central LLC ("Seller") desire to enter into a purchase agreement (the "Purchase Agreement") pursuant to which the Authority will acquire certain properties in the City located at 3853 Central Avenue NE and 3851 Central Avenue NE (the "Properties") from the Seller for economic redevelopment purposes. The Property is described in Exhibit A attached hereto. 1.02. Pursuant to the Purchase Agreement, the Authority will purchase the Properties from the Seller for a purchase price of 5700,000 plus related closing costs. 1.03. Pursuant to other project costs the Authority will budget 580,000 for the demolition and grading of the properties. 1.05. The Authority finds that acquisition of the Properties is consistent with the City's Comprehensive Plan and will result in redevelopment of the substandard property located at 3853 Central Avenue NE and 3851 Central Avenue NE. Such acquisition of these Properties, for subsequent resale, best meets the community's needs and will facilitate the economic redevelopment and revitalization of this area of the City. 1.05, The Authority also finds that this redevelopment project is consistent with the purpose of the Economic Development Authority Redevelopment Fund 408. The current 2023 budget for Economic Development Authority Redevelopment Fund 408 does not include this redevelopment project and must be amended as the property was not available on September 26,2022, when the Authority adopted this budget The available balance of the Economic Development Authority Redevelopment Fund 408, beyond that committed for the existing 2023 budget, is approximately $2.4 million, which is more than sufficient to fund the redevelopment project. SECTION 2. PURCHASE AGREEMENTAND BUDGET AMENDMENT APPROVED. 2.01. The Authority hereby ratifies and approves the actions of Authority staff and of Kennedy Graven ("Legal Counsel") in researching the Property and preparing and presenting the Purchase Agreement. The Authority approves the Purchase Agreement in the form presented to the Authority and on file at City Hall, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the Purchase Agreement by those officia ls shall be conclusive evidence of their approval. 1.04. ln accordance with the city's ACHRA participation, the Authority will receive a reimbursement from the City of Columbia Heights via the Anoka County HRA, for the purchase and demolition of the properties. EXHIBIT A Leeal Description of the Propertv IOTS 17 & 18 CENTRAL AVE SUSDIVISION, EX RD, SUB.] TO EASE OF REC LOT 15 CENTRAL AVE SUB 2.02. The Authority herby amends the 2023 budget for Economic Development Authority Redevelopment Fund 408 to appropriate 5780,000 for the purchase of the Properties and additional estimated project costs. 2.03. The Authority herby accepts all related transfers of Anoka County HRA grant funds from the City of Columbia Heights. 2.04. Authority staff and officials are authorized to take all actions necessary to perform the Authority's obligations under the Purchase Agreement as a whole, including without limitation execution of any documents to which the Authority is a party referenced in or attached to the Purchase Agreement, and any deed or other documents necessary to acquire the Property from the Seller, all as described in the Purchase Agreement ORDER OF ECONOMIC DEVETOPMENT AUTHORIW Adopted this 5th day of September ,2023 offered ov,utt m/J (^ seconded avllttAlrqn*e Z brmuL(4, Roil cail: l4l/ Ar?lr2J fi pa*e<-rf lUohuvr pazxa Attest: ,nrrsJr! .% ty President secretary t-' y't' rr\A.L;... \r^,-)*- )