Loading...
HomeMy WebLinkAbout2003-014 EDAR1 Commissioner Kay Lasman introduced the following resolution and moved its adoption: WHEREAS, the Economic Development Authority in and for the City of Brooklyn Center (Authority), owns the property located at 7000 Brooklyn Boulevard; and WHEREAS, it is in the interest of the Authority and the City of Brooklyn Center to develop the subject property; and Builders. EDA RESOLUTION NO. 2003 -14 RESOLUTION APPROVING A PRELIMINARY DEVELOPMENT AGREEMENT FOR 7000 BROOKLYN BOULEVARD WITH ANDERSON BUILDERS WHEREAS, the Authority has received a development proposal from Anderson NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center, Minnesota that: 1. The attached preliminary agreement is approved; 2. The President and Executive Director are authorized to execute said agreement. December 8, 2003 Date President The motion for the adoption of the foregoing resolution was duly seconded by commissioner Bob Peppe and upon vote being taken thereon, the following voted in favor thereof: Myrna Kragness, Kay Lasman, Diane Niesen, and Bob Peppe; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted. 1 1 RESOLUTION NO. 2003-14 WITNESSETH: 1587378v3 1 AGREEMENT THIS AGREEMENT, dated as of this 9th day of December, 2003 (the "Effective Date is entered into by and between the Brooklyn Center Economic Development Authority (the "Authority), a body corporate and politic and Anderson Builders, a Minnesota corporation (the "Tentative Developer WHEREAS, the Authority currently owns certain property, which property is described on Exhibit A hereto (the "Property and WHEREAS, the Authority desires to promote redevelopment of the Property, which is within the Housing Development and Redevelopment Project No. 1 in the City of Brooklyn Center (the "City and WHEREAS, Anderson Builders has submitted a proposal to the Authority pursuant to which the Tentative Developer would acquire the Property from the Authority and develop a 15,000 square foot professional building on such Property (the "Project and WHEREAS, if undertaken and completed, the Project would help meet the Authority's goal of increasing the tax base and providing increased employment opportunities in the City. NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations set forth herein, the parties agree as follows: A. Obligations of Tentative Developer. The Tentative Developer will, at its own cost, complete the following: 1. Within 60 days from the Effective Date, have a preliminary meeting with appropriate Authority staff to discuss the Project, including determining what, if any, zoning approval and variances would be needed if the Project were to proceed. 2. Within 90 days from the Effective Date, provide to the Authority the following: (i) a draft of a site plan and elevations depicting the design and architectural style of the Project, including exterior treatments /materials and interior schematics suitable for submission to the Planning Commission for review, (ii) a draft of architectural /engineering plans and specifications for the Project, and (iii) a draft of sewer, water and utility plans. Finalize all the aforementioned plans within 150 days from the Effective Date of this Agreement. 3. Finalize a detailed development budget, including sources and use of funds, a sworn construction cost statement, a sworn statement setting forth the total development costs together with copies of any other documentation reasonably required by the Authority to confirm such costs, names of the proposed tenants for Project and proposed square footage to be used by each such tenant and submit all RESOLUTION NO. 2003 -14 4. Within 120 days from the Effective Date of this Agreement, submit to the Authority a preliminary financing plan for the Project, including costs to be incurred and financial resources to be used to complete the development, acceptable to Authority staff and approved by the Authority. the aforementioned information to the Authority within 120 days from the Effective Date of this Agreement. 5. Within 180 days from the Effective Date of this Agreement, the Tentative Developer will negotiate in good faith with the Authority in an attempt to reach agreement on the terms and conditions of a Development Agreement for the Project and it will execute such Development Agreement. Costs and Expenses. (i) Except as otherwise provided herein, each party is responsible for paying its own costs and expenses. (ii) The Tentative Developer is responsible for all of the Authority's out -of- pocket costs and expenses including, but not limited to, any and all expenses and costs already incurred by the City and the Authority, if any, for bond counsel, outside legal counsel, financial advisors, appraisers, and other consultants and all other out -of- pocket expenses and costs in connection with the Project during the 180 day term of this Agreement (the "Term Contemporaneously with the execution of this Agreement, the Tentative Developer will pay a refundable deposit of $5,000.00 to the Authority (the "Developer Deposit The Authority may use the Developer Deposit to reimburse itself for costs and expenses it incurred in consideration of the proposed Project during the Term. (iii) The Authority may notify the Tentative Developer in writing if the balance of the Developer Deposit falls below $2,000.00. Within ten (10) days of such notification, the Tentative Developer shall submit to the Authority the amount requested in the notification, which shall equal the difference between the original Developer Deposit and the balance of the Developer Deposit at the time of the notification. (iv) If this Agreement is terminated, as provided in Section E herein or as otherwise permitted by this Agreement, and if the balance remaining of the Developer Deposit shall be insufficient to cover the outstanding costs and expenses incurred by the Authority through termination of this Agreement, the Tentative Developer shall remit such deficiency to the Authority within ten (10) days after the date of termination. C. Obligations of the Authority. (i) The Authority agrees it will not negotiate or contract with another party concerning the development of the Property or the sale of the Property during the Term, unless this Agreement is earlier terminated in accordance with its provisions. 1587378v3 2 1 RESOLUTION NO. 2003-14 (ii) The Authority has no obligation to negotiate in good faith with the Tentative Developer unless and until the Tentative Developer performs all the obligations under Sections A.1- A.5 of this Agreement to the Authority's satisfaction. D. Transfer or Assignment. The Developer shall not assign or transfer its rights under this Agreement in full or in part without the prior written consent of the Authority, which the Authority may grant or withhold in its sole and absolute discretion. E. Default and Termination of Agreement. (i) If Tentative Developer defaults in the performance of one or more of its obligations under Section B of this Agreement "Tentative Developer Default the Authority may terminate this Agreement. If the Authority terminates this Agreement because of a Tentative Developer Default, the Tentative Developer remains liable for those costs and expenses incurred by the Authority in connection with the Project in excess of the balance remaining of the Developer Deposit at the time of the Tentative Developer Default. (ii) If the Authority fails to perform its obligation under Section C of this Agreement "Authority Default the Tentative Developer may terminate this Agreement. The Tentative Developer may sue the Authority for damages in connection with an Authority Default, but such damages are limited to such out of pocket expenses the Tentative Developer has incurred in connection with the proposed Project. (iii) Notwithstanding any other provision of this Agreement to the contrary, this Agreement shall automatically terminate after 180 calendar days from the Effective Date of December 9, 2003. F. Notices. Notice or demand or other communication between or among the parties shall be sufficiently given if sent by mail, postage prepaid, return receipt requested or delivered personally: As to the Authority: As to the Tentative Developer: G. No Final Agreement. This Agreement does not constitute a Development Agreement or Purchase Agreement. The Tentative Developer has no rights in the Property by executing the Agreement. The Authority's obligations under this Agreement are limited to those specifically set for this Section C of this Agreement and has no other implied obligations. 1587378v3 3 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 -2199 Attn: Mike McCauley Attn: 1 RESOLUTION NO. 2003-14 IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed in its name and behalf and the Tentative Developer has caused this Agreement to be duly executed as of the day and year first above written. 1587378v3 4 BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY By: Chair By: Executive Director RESOLUTION NO. 2003 -14 1587378v3 ANDERSON BUILDERS By: Its: By: Its: 5 RESOLUTION NO. 2003-14 1587378v3 EXHIBIT A LEGAL DESCRIPTION OF PROPERTY A -1