HomeMy WebLinkAbout2022-02 EDAR Commissioner Butler introduced the following resolution and moved its adoption:
EDA RESOLUTION NO. 2022-02
RESOLUTION APPROVING THE THIRD AMENDMENT TO LEASE
AGREEMENT AND RELOCATION ASSISTANCE AGREEMENT WITH
SHENG ZHENG, WANG LIN, LIN, INC., OPERATING UNDER THE
TRADE NAME "OCEAN BUFFET" AND ALATUS BROOKLYN
CENTER
WHEREAS, the Economic Development Authority of Brooklyn Center, Minnesota
(the "Authority") is the owner of certain premises known as Store #5810 consisting of 8,100 rental
square feet located at 5810 Shingle Creek Parkway,Brooklyn Center,Minnesota(the"Premises");and
WHEREAS, the Authority leases the Premises to Sheng Zheng, individually, Wang
Lin, individually, and Lin, Inc., operating under the trade name "Ocean Buffet" (collectively, the
"Tenant"); and
WHEREAS, the Authority and the Tenant's predecessors in interest entered into a
Lease Agreement for the Premises on March 10, 2011 (the "Lease") and the Lease was amended in
Marchof 2016 by the Authority and the Tenant; and
WHEREAS, the Authority intends to sell property that includes but may not be limited
to the Premises to Alatus Brooklyn Center, a Minnesota limited liability company (the "Purchaser")
for the purpose of redevelopment, including the demolition of the Premises; and
WHEREAS, the Tenant is eligible to receive relocation services and assistance from
the Authority provided under the Minnesota Uniform Relocation Act, Minnesota Statutes, Section
117.52 if it is required to relocate due to the redevelopment of the Premises; and
WHEREAS, the Authority contracted with a relocation consultant to provide relocation
services to the Tenant; and
WHEREAS, the Authority's consultant has provided relocation services to the Tenant
and advised the Tenant of its rights under the Minnesota Uniform Relocation Act; and
WHEREAS, the Authority and the Tenant reached an agreement and Tenant was paid a
one-time non-refundable Relocation Payment in the amount of$40,000;and
WHEREAS, the Tenant has also agreed to terminate the Lease early and the Purchaser
has agreed to pay the Tenant an early termination payment of$300,000 if the sale of the Premises to the
Purchaser occurs; and
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EDA RESOLUTION NO: 2022-02
WHEREAS, during the remaining term of the Lease (until August 31, 2022), the
Authority has agreed that Tenant does not need to pay any Minimum Annual Rent under Section
4.01(a) of the Lease, but shall remain obligated to pay Additional Rent and Percentage Rent; and
WHEREAS, in the event that the sale of the Premises does not occur by August 31,
2022,the Tenant shall have the right to notify Landlord, by email, of its exercise of the Option Term
underthe terms of the Lease up until August 31, 2022, but no further relocation payments will be due
to the Tenant because the Tenant's continued occupancy of the Premises after it has received the
relocation payment is an occupancy that begins after the date of the property's acquisition for the
project under 49 C.F.R. 24.2(a)(9)(ii)(B); and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
EconomicDevelopment Authority of Brooklyn Center, Minnesota(the "Board"), as follows:
1. The EDA hereby approves the Second Amendment to Lease Agreement and Relocation
Assistance Agreement substantially in accordance with the terms set forth in the form presented to the
Board, together with any related documents necessary in connection therewith (collectively, the
"Lease Amendment and Relocation Documents") and hereby authorizes the President and Executive
Director to negotiate the final terms thereof and, in their discretion and at such time as they may deem
appropriate, to execute the Lease Amendment and Relocation Documents on behalf of the Authority,
and to carry out, on behalf of the Authority, the Authority's obligationsthereunder.
2. The approval hereby given to the Lease Amendment and Relocation Documents includes
approval of such additional details therein as may be necessary and appropriate and suchmodifications
thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved
by legal counsel to the Authority and by the officers authorized herein to execute said documents prior
to their execution; and said officers are hereby authorized to approve said changes on behalf of the
Authority. The execution of any instrument by the appropriate officers of the Authority herein
authorized shall be conclusive evidence of the approvalof such document in accordance with the terms
hereof. In the event of absence or disability of the officers, any of the documents authorized by this
Resolution to be executed may be executed without further act or authorization of the Board by any
duly designated acting official, or by suchother officer or officers of the Board as, in the opinion of the
City Attorney,may act in their behalf.
3. Upon execution and delivery of the Lease Amendment and Relocation Documents, the officers
and employees of the Authority are hereby authorized and directed to take or cause to be taken such
actions as may be necessary on behalf of the Authority to implement the Lease Amendment and
Relocation Documents.
4. The Board hereby determines that the execution and performance of the Lease Amendment
and Relocation Documents will help realize the public purposes of the Economic
Development Authority Act.
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EDA RESOLUTION NO. 2022-02
January 10, 2022
Date resident
The motion for the adoption of the foregoing resolution was duly seconded by commissioner
Graves
and upon vote being taken thereon, the following voted in favor thereof:
Butler, Elliott, Graves, Lawrence-Anderson, Ryan
and the following voted against the same: None
whereupon said resolution was declared duly passed and adopted.
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