84-01 HRA Resolution
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Resolution 84-1
March 8, 1984
Commissioner Anderson introduced the following resolution and moved its adoption:
RESOLUTION OF FINDINGS AND DETERMINATIONS APPROVING LEASE AND SALE
OF CERTAIN REAL PROPERTY IN AREA D OF VALLEY SQUARE PROJECT TO THE
NORTHLAND COMPANY AND rIDDIFYING VALLEY SQUARE REDEVELOPMENT PLAN
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Golden Valley, Minnesota (hereinafter referred to as the "HRA"), and the City
Council of the City of Golden Valley, Minnesota, have approved the Valley Square
Redevelopment Plan;
WHEREAS, the Valley Square Redevelopment Plan contemplates the provision of
a redevelopment parcel within Area D of the Valley Square Redevelopment Area
with sufficient space for on-site parking for the purpose of constructing an
office complex of approximately 70,000 square feet;
WHEREAS, The Northland Company has made a proposal for the construction of
an office development or a "hi-tec" office/service development in one building,
which proposal substantially conforms to the terms of the Valley Square
Redevelopment Plan;
WHEREAS, The Northland Company proposal requires minor modifications of the
Valley Square Redevelopment Plan;
WHEREAS, the HRA has reviewed the terms of the proposal made by The Northland
Company and they appear to be reasonable and within the overall guidelines for
redevelopment of Area D of the Valley Square Redevelopment Area;
WHEREAS, the HRA has used the land appraisal services of the City of Golden
Valley to determine the use value of the real property contemplated by The
Northland Company.s proposal;
WHEREAS, the HRA has duly given notice of a pUblic hearing on the proposed
lease and sale of the property set forth on Exhibit A hereto (hereinafter the
"Subject Property") pursuant to Minnesota Statutes ~462.525 and has duly held
said public hearing; and
NOW, THEREFORE, BE IT RESOLVED that the HRA does hereby make the following
findings and determinations:
(1) Proper published notice of the proposed lease and sale of the Subject
Property described above has been given and a public hearing has been
held thereon, all in accordance with the provisions of Minnesota
Statutes ~462.525;
(2) The use of the Subject Property proposed by The Northland Company fully
conforms to the terms of the Valley Square Redevelopment Plan, as
modified herein;
(3) The use value of the Subject Property is hereby established as $2.00
per square foot or a total approximate value of $428,000.00 (assuming
214,000 square feet); and
Resolution 84-1 - Continued
March 8, 1984
(4) In consideration of the restrictions on the sale and use of the Subject
Property imposed by Minnesota Statues 9462.525 and the restrictions
imposed by the Valley Square Redevelopment Plan, sale of the subject
Property to The Northland Company at a price of $2.00 per square foot
is appropri ate.
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BE IT FURTHER RESOLVED that:
(1) The lease and sale of the Subject Property to The Northland Company on
the terms and conditions set forth in the attached Private Development Agreement -
Area D (Exhibit "B" hereto) is hereby approved subject to the restrictions set
fort h be 1 ow:
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(a)
The Northland tompany shall carry out or cause to be carried out all
terms of the Valley Square Redevelopment Plan, or approved modifications
thereof, with respect to the Subject Property;
No use shall be made of the Subject Property which does not conform to
the Valley Square Redevelopment Plan;
The Northland Company shall give reasonable assurance in writing of
the priority of the obligations of the sale and of conformance to the
Valley Square Redevelopment Plan over any other obligations it may
have with respect to said Property;
The Northland Company shall supply the HRA with evidence of its
financial and legal ability to carry out and conform to the Valley
Square Redevelopment Plan and the terms and conditions of the sale
approved hereby;
The Northland Company shall commence construction of the improvements
called for on the Subject Property as set forth in the Private
Development Agreement attached hereto as Exhibit "B";
The Northland Company shall have no power to assign its interest in
the Subject Property unless and until the HRA certifies that all
building constructions and other physical improvements thereon
required by the Valley Square Redevelopment Plan have been completed,
except as otherwise provided in the Private Development Agreement -
Area D attached hereto as Exhibit "B";
As security for its fulfillment of the terms of the Valley Square
Redevelopment Plan with respect to the Subject Property and its
agreement with the HRA, The Northland Company, with the participation
of the HRA, shall furnish a completion bond for the project as set out
in the Private Development Agreement - Area D (attached hereto as
Exhibit "B") in such form as the HRA hereby approves, in an amount not
less than $3,400,000;
There shall be no discrimination in the use of the Subject Property
because of race or religion, political or other affiliations;
All of the foregoing restrictions on the lease and sale of the Subject
Property to The Northland Company shall run with the land and shall be
included in the documents transferring an interest in said property,
except to the extent the HRA's attorney determines are not approPriate
to run with the land or be included in the documents of transfer.
(b)
(c)
(d)
(e)
(f)
(g)
(h)
( i )
(2) The Chair of the HRA and the Director of the HRA are hereby authorized
to execute the necessary documents and close the lease and sale of the Subject
Property to The Northland Company pursuant to the terms and restrictions provided
hereby.
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Resolution 84-1 - Continued
March 8, 1984
(3) The Director of the HRA is hereby authorized and empowered to take all
necessary steps to acquire the Subject Property and to perform the obligations
imposed on the HRA under the Private Development Agreement - Area D (attached
hereto as Exhibit "B").
(4) The Valley Square Redevelopment Plan is hereby amended to the extent
that The Northland Company proposal embodied in The Private Development
Agreement - Area D (attached hereto as Exhibit "B") so modifies it, including,
but not limited to, deleting the four paragraphs which follow the heading:
"Land Uses - Area D (East Gateway Offi ce Devel opme nt)" on pages 16 and 17 of the
August 10, 1982 version of the Valley Square Redevelopment Plan, as approved,
and substituting in lieu thereof the following:
"This Area is bounded by Rhode Island Avenue on the west, Country Club
Drive on the north, Highway 55 on the south, and the existing Trevilla
Nursing Home and Skyline Plaza Apartments on the east."
"The Plan provides for acquisition of existing uses in Area D and replacement
with a single office or "hi-tech" office/service building for the southwest
corner of the site. The building will contain 80 to 90,000 square feet and
provide appropriate parking. The Transit Pulse Center originally contemplated
for the northwest corner of the site will not be built. Finally, a gas
station which was considered as a possibility for the site will not be
built on the site either."
(5) The approvals and authorizations contained in this Resolution are
subject to approval by the HRA attorney of the form of the irrevocable commitment
letter and the surety company, both as required by Section 4.5 of the Private
Development Agreement - Area D.
RaY~&-
ATTEST:
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The motion for the adoption of the foregoing resolution was seconded by
Commissioner Johnson and upon a vote being taken thereon, the following voted
in favor thereof: Anderson, Johnson, Stockman and Thompson; and the following
was absent: Bakken, and the following voted against the same: none, whereupon
said resolution was declared duly passed and adopted, signed by the Chair and
his signature attested by the Director.
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Resolution 84-1 - Continued
t1arch 8, 1984
EXHIBIT IIA"
Area D - Legal Description
Lots 1 through 8, both inclusive, Block 1, Cottage Grove
Lot 48, Auditor's Subdivision No. 322
West 60 feet of Lot 1, Block 1, Skyline Plaza
Lots 1 and 2, Block 2, Skyline Plaza
Plus that portion of vacated 5th Avenue North adjoining the above property
(Subject to verification by survey)
PERMITTED ENCUMBRANCES: to come