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05-21-13 Special HRA Agenda AGENDA Special Meeting of the Housing and Redevelopment Authority Golden Valley Gity Hall 7800 Golden Valley Road Council Chamber May 21, 2013 7:15 pm or immediately after the City Council Meeting Paqes 1. Roll Call 2. North Wirth Redevelopment Area: A. Authorization to Sign Amended Consent Agreement with 2-8 Stan Koch and Sons Trucking, Inc. B. Approval of Amending the North Wirth Tax Increment District 9-12 No. 3 to Discontinue the Collection of Increment Generated From Certain Parcels 13-3 3. Adjournment This document i�availak�ie in alternate farrnats up�n a 72-h�ur request. Please call 763-593-800b (7TY: 763�593-3968)to make a request. Examples af alternate formats : may include large print, electronic, Braille,audiocassette,etc. ���� U� Housing and Redevelopment Authvri.ty 763-593-80021763-593-8109(fax) ';� �`��: :��' "` � u. Executive Summary For Action Golden Valley Special Housing and Redevelopment Authority Meeting May 21, 2013 Agenda Item 2. A. Authorization to Sign Amended Consent Agreement with Stan Koch and Sons Trucking, Inc. Prepared By Joe Hogeboom, City Planner Summary The Housing and Redevelopment Authority (HRA) entered into the GVEC Properties, LLC Private Development Agreement in 2006. The agreement was last amended in January to allow Bank Mutual to sell a portion of the property to Stan Koch and Sons Trucking, Inc., which is located on the adjacent parcel#or the construction of a parking lot. In its approval,the HRA allows this sale to go through, contingent upon Planned Unit Development and platting approval. For the agreement to be implemented, Stan Koch and Sons Trucking, Inc. must agree to purchase property from Bank Mutual. A Consent Agreement, which was approved in lanuary, indicates Stan Koch and Sons Trucking, Inc.'s agreement and provides HRA approval. In the Consent Agreement, the sale of the property was to have taken place by May 31, 2013. Due to issues with title work and surveying, the property transfer may not occur until early June. For that reason, we request that the deadline on the Consent Agreement be modified to June 12, 2013. Attachments • Consent Agreement dated January 8, 2013 (6 pages) Recommended Action Motion to authorize the Chair and the Director to sign an amendment to the Consent Agreement changing the sale date deadline to June 12, 2013. CONSENT AGREEMENT THIS AGREEMENT is made and entered into as of this S�'day of �av,c� u �-� , 2013, by and between the Housing and Redevelopment Authority in and for the City f Golden Valley, a public body corporate established and existing under Minnesota Statutes, Section 469.001 et seq., located at 7800 Golden Valley Road, Golden Valley, Minnesota 55427 (the "HRA"), and Stan Koch & Sons Trucking, Inc., a Minnesota corporation, located at 4200 Dahlberg Drive Minneapolis, Minnesota 55422 ("Koch"). The HRA and Koch are each referred to herein as a "Party", and collectively as the "Parties". RECITALS: WHEREAS, Koch has entered into a Purchase and Sale Agreement, dated October 23, 2013, and a First Amendment to Purchase and Sale Agreement, dated December 31, 2012, with Bank Mutual (the "Bank") (the "Purchase Agreement"), providing for the purchase by Koch from the Bank of a parcel described in Exhibit A (the "Sale Parcel"); and WHEREAS, the Sale Parcel is currently subject to the terms, conditions, and restrictions contained in the GVEC Properties, LLC Private Devefopment Agreement, dated January 10, 2006, and as amended by the First Amendment, Second Amendment, and Third Amendment thereto (collectively, the "Development Agreement"), including a requirement that the HRA consent to any transfer of the Sale Parcel; and WHEREAS, the HRA is willing to consent to the sale of the Sale Parcel by the Bank to Koch in accordance with the terms of the Purchase Agreement, and release the Sale Parcel from the terms, conditions and restrictions contained in the Development Agreement, subject to the terms and conditions of this Agreement; NOW, THEREFORE, in consideration of the foregoing, and in consideration of the mutual terms and conditions contained herein, the parties hereby agree as follows: 1. Amendment of PUD. Within thirty (30) days after the date this Agreement has been executed by both parties, Koch shall apply to the City of Golden Vatley (the "City") for an amendment to existing P.U.D. No. 61, to incorporate the Sale Parcel into the existing P.U.D. Koch shall use its best efforts to obtain the amendment to the P.U.D., and all other required consents and approvals from the City, as soon as practicable, including any replatting if required by the City. Koch shall also cooperate with the Bank, the HRA, and the City in amending existing P.U.D. No. 100 to exclude the Sale Parcel. 2. Improvements. Koch agrees that following the closing ofi the purchase of the Sale Parcel, it shall promptly demolish any improvements currently on the Sale Parcel, and construct surface parking for 50 cars, together with any lighting and landscaping required by the City. Construction of the new improvements shall be in accordance with the construction plans attached as Exhibit B. 3. Consent. The HRA consents to the sale of the Sale Parcel by the Bank to Koch pursuant to the terms of the Purchase Agreement, provided the sale occurs on or before May 31, 2013. The HRA agrees that, following the sale of the Sale Parcel by the Bank to Koch, all of the terms, conditions, obligations and restrictions of the Development Agreement shall cease to apply with respect to the Sale Parcel. The HRA's consent to the sale of the Sale Parcel to Koch under this Agreement is contingent on: (a) approval by the City of an amendment to existing P.U.D. No. 100 to exclude the Sale Parcel, and (b) approval by the City of an amendment to existing P.U.D. No. 61 to include the Sale Parcel. Koch shall use its best efforts to obtain all of such approvals as soon as practicable. 4. General. This Agreement constitutes the entire agreement between the � Parties on the subject matter hereof, superseding all prior oral and written agreements on the subject matter hereof. The City is not a Party under this Agreement. This Agreement is binding upon, and shall inure to the benefit of, the successors and assigns of the Parties. This Agreement may only be modified by a written amendment signed by both Parties. This Agreement may not be assigned by either Party without the prior written consent of the other Party. This Agreement shall be governed in accordance with Minnesota law. This Agreement may be executed in counterparts, and signature pages delivered by facsimile or computer shall have the same effect as manually- signed, original copies. 2 IN WITNESS WHEREOF, the parties have caused the execution of this Agreement as of the day and year first above-written. HOUSING AND DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY B ��M.(0� I" Y• ��� Name:_ �iuct ��'/1 e./ its: �!� By: Name: `�IOmQ'S �• gll Its: _�jli�itf7tr�C, (�7rY�G�/ -- STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instru ent was acknowledged befo e me this ���y of ��intta , 2013 bY �t�� �P� �'/ and d/t1�S . r� , the Y and / � � , respectively, of the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF GOLDEN VALLEY, on behalf thereof. ';,��,a,��,,,� �f � � �:�`-'�. ������ ary P blic �:�`� �` ,����`��d�. i���.LY .:���.�-r yy�y�i�!�(/ S\y�F1��. +r�. I�J!/a.�'1!����p� ,�i..����.: b! -r` d�'�4{��• (�. � +y�,ySfir$�o ^°8 �����i . ..,.;Yy ���1 � 3 STAN KOCH & SONS TRUCKING, INC. gy; #�1��.._ .. �- Name: ����� Ko c,� Its: C E o STATE OF MINNESOTA } ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this `��'�� day of �����-ti , 2013 by ��-v� i<O c.� , of STAN KOCH & SONS TRUCKING, INC., on behalf of the corporation. •. R08ERT K BUSS � � Notary Public �—r—� Minnesota Notary Public � My Comm.Expires Jan 31,2015 011800/311002/1551394 3 4 EXHIBIT A Descriation of Sale Propertv Ail of Lot 1 and that part of Lots 2 and 3, Block 1, NORTH WIRTH BUSINESS CENTER, P.U.D. NO. 100, Hennepin County, Minnesota, lying northeasterly of line described as commencing at the most northerly corner of said Lot 2; thence southwesterly 134.03 feet along the northwesterly line of said Lot 2, being a curve concave to the southeast, having a radius of 3337.00, a central angle of 2 degrees 18 minutes 05 seconds and an assumed chord bearing of South 52 degrees 50 minutes 45 seconds West to a point of tangency in said northwesterly line of Lot 2; thence South 51 degrees 41 minutes 42 seconds West, along said northeasterly line of Lot 2 and tangent to said cunre, a distance of 12.30 feet to the point of beginning of line to be described; thence South 38 degrees 18 minutes 18 seconds East, a distance of 158.35 feet; thence South 64 degrees 04 minutes 09 seconds East a distance of 30.00 feet to the southeasterly line of said Lot 2 and there Terminating. , ,; ',t� \ ��o ; �� ��_ �_? �� a � � ,,r - .._ ,w� ,��. � � � � � =: �-, � o:,� � � ��� �-� _, q �a • g s ��, . � .y� �1 ;'' :l. _.. 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E• lJ ,� '��'•,,. � � i t I � � �.'ti . � � '•. ���.. ,,��p � .. \ \ ,`� .. q, T p ,� � \ � ��� \ � \ ;,� �''a�J,,� A U � � \\ � �� \\�, ` p y 4 I ���,, \� �\ ��j,�� •��t� L§ ° � \ 3 `�t c � \ � �� � � ♦ � � � \\ \ � t:� � `�— — — B-1 . � �'t��' C7� ��Y"' ,r,{ Housing and Redeveloprnent Authority 763-593-8002/763-593-8109(fax) Executive Summary For Action Golden Valley Special Housing and Redevelopment Authority Meeting May 21, 2013 Agenda Item 2. 6. Amending the North Wirth Tax Increment District No. 3 to Discontinue Collection of Increment Generated from Certain Parcels Prepared By Sue Virnig, Finance Director Summary The Housing and Redevelopment Authority will give direction to the City for removal of certain parcels that are in the North Wirth Tax Increment District#3. Those parcels were sold and no longer will be part of the Tax Increment District per agreement. Attachments • Resolution Amending the North Wirth Tax Increment District No. 3 to Discontinue the Collection of Increment Generated From Certain Parcels (3 pages) Recommended Action Motion to adopt Resolution Amending the North Wirth Tax Increment District No. 3 Tax Increment Financing District to Discontinue the Collection of Increment Generated from Certain Parcels. Resolution 13-3 May 21, 2013 Commissioner introduced the following resolution and moved its adoption: RESOLUTION AMENDING THE NORTH WIRTH DISTRICT NO. 3 TAX INCREMENT FINANCING DISTRICT TO DISCONTINUE THE COLLECTION OF INCREMENT GENERATED FROM CERTAIN PARCELS WHEREAS, by adoption of Resolution 04-07 by the Housing and Redevelopment Authority (HRA) of the Tax Increment Financing Plan for Tax Increment Financing (Soils Conditions) North Wirth District No. 3 the HRA initiated creation of a TIF District consisting of parcels in P.U.D. 100, North Wirth Commerce Center; and WHEREAS, by adoption of a resolution on July 6, 2004, the City Council of the City of Golden Valley, Minnesota, (the "City") has heretofore created the North Wirth Tax Increment Financing District (the "District No. 3"), located within North Wirth Development District No. 1505, and has approved a Tax Increment Financing Plan (the "TIF Plan"), for the District to provide assistance to the project area, the TIF District was created and increments from the district where collected; and WHEREAS, the County Auditor of Hennepin County (the "County") has certified the original net tax capacity and the original local tax rate for Tax Increment District No. 1505, pursuant to the provisions of Minnesota Statutes, Section 469.174 to 469.1799, all inclusive; and WHEREAS, by adoption May 21, 2013 of amendments to of P.U.D. 100, North Wirth Business Center, originally adopted on September 6, 2005, and to PUD 61, Dahlberg Commerce Center, originally adopted on September 1, 1992 with subsequent amendments on November 15, 1994 and May 23, 1995, the parcels for the original district have been modified; and WHEREAS, it is the intent of the HRA that parcels removed from P.U.D. 100, North Wirth Business Center also be removed from Tax Increment District No. 1505, and that increment no longer be collected from these parcels. NOW, THEREFORE BE IT RESOLVED that the HRA hereby directs the City Gouncil to remove certain parcels, as identified in the attached map, from the Tax Increment District No. 1505, for tax year payable 2015, as follows: 1. All of PID 19-029-24-13-0040 2. Parts of 19-029-24-13-0051 and 19-029-24-13-0042 that are now added to PUD 61, Dahlberg Commerce Center (PID 19-029-24-14-0141 and 19-029-24-14-0142). BE IT FURTHER RESOLVED that the HRA request the City to: 1. Direct the County to discontinue sending increment generated from certain parcels of County Praject Number 1505 to the City after December 31, 2013; and Resolution 13-3 - Continued May 21, 2013 2. Continue to collect increment generated by County Project Number 1505 through tax payable year 2029, or until the pay-as-you-go note is defeased, whichever is sooner; and 3. Direct the Clerk-Administrator provide a certified copy of this resolution to the County Auditor of Hennepin County as notification of the City's compliance with the special legislation. Paula Pentel, Chair ATTEST: Thomas D. Burt, Executive Director The motion for the adoption of the foregoing resolution was seconded by Commissioner upon a vote being taken thereon, the following voted in favor thereof; and the following voted against the same whereupon said resolution was declared duly passed and adopted, signed by the Chair and the signature attested by the Executive Director. E o � L � V� � � L '",' L � � Q. p�N p m . c_ C •O �0� N ��a��. cS7 .rr L�1 w p aai�� 6 ��� \y C? � N � ��� � � ��� c- �- ` d Q �w� p J °• `4' �7 ` = paU7 N C ��5�9 . . i� � � �N � G �7�� a ��, a c: t��o � � � C� _7. � y��c Z � �; �.��� � ��/ `�- ' �' ��y C ' J ��K . . " �v c� o z a o \/ \� ;,/ ..- '�'' 7 u Q A W Q 4 . .� L�1 .f�.,�>,a; ° � c � \` �� �' T��� ..t+ N = � . , �_ �, � NM A —� � � `�, �-_` � A O d . 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