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HomeMy WebLinkAbout2022-22 EDAR Commissioner Ryan introduced the following resolution and moved its adoption: EDA RESOLUTION NO. 2022-22 RESOLUTION APPROVING THE FIFTH 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"),the Lease was amended in March of 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 to an amendment to the Lease Agreement to add a Relocation Agreement in January 2021,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 BR305-1-692681.v 1 RESOLUTION NO. 2022-22 agreed to pay the Tenant an early termination payment of$300,000 if the sale of the Premises to the Purchaser occurs; and WHEREAS, during the remaining term of the Lease, 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 the lease termination date, the Tenant shall have the right to notify Landlord,by email, of its exercise of the Option Term underthe terms of the Lease,which would extend their lease an additional five years, 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 WHEREAS, the Authority and Tenant agreed to amend the Lease Agreement and Relocation Assistance Agreement in July 2022 to extend the lease termination date to November 30, 2022; and WHEREAS, the Purchase and Tenant have negotiated, and are requesting the Authority to consider a fifth amendment to the Lease Agreement and Relocation Assistance Agreement to extend the lease termination date to February 30, 2023. NOW,THEREFORE,BE IT RESOLVED by the Board of Commissioners of the Economic Development Authority of Brooklyn Center, Minnesota(the"Board"), as follows: 1. The EDA hereby approves the Fifth 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 obligations thereunder. 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 such modifications 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 approval of 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 such BR305-1-692681.v 1 RESOLUTION NO. 2022-22 3. other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf. 4. 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. 5. 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. • October 10, 2022 Date resid t 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: Elliott, Graves, Lawrence-Anderson, Ryan and the following voted against the same: None whereupon said resolution was declared duly passed and adopted. BR305-1-692681.v 1