84-07 HRA Resolution
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Resolution 84-7
December 11, 1984
Commissioner Johnson introduced the following resolution and moved its adoption:
RESOLUTION OF FINDINGS AND DETERMINATIONS APPROVING LEASE AND SALE
OF CERTAIN REAL PROPERTY IN AREA A OF VALLEY SQUARE PROJECT TO
THE NORTHLAND COMPANY AND MODIFYING VALLEY SQUARE REDEVELOPMENT PLAN
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Golden Valley, Minnesota (hereinafter "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
two redevelopment parcels within Area A of the Valley Square Redevelopment Area
with a three-story apartment condominium on the northerly parcel and a 175,000
sq. ft. office complex with underground and surface parking on the southerly
parcel;
WHEREAS, the Northland Company has made a proposal for the construction of
a four-story apartment complex of at least 120 units or a six-story 130,000 sq.
ft. office building on the northerly parcel and a ten-story 210,000 sq. ft.
office building with surface and structured parking on the southerly parcel;
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 A 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 Mi nn. Stat. Sec. 462.525 and has duly hel d said
public hearing;
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 t~e provisions of Minn. Stat. Sec.
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
modi fi ed herei n;
3. The use value of the Subject Property, after deducting for the extension
of Golden Valley Road, is hereby established as $2.50 per square foot
or a total approximate value of $1,750,000.00 (estimating 700,000
square feet); and
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Resolution 84-7 - Continued
December 11, 1984
4. In consideration of the restrictions on the sale and use of the Subject
Property imposed by Minnesota Statute Sec. 462.525 and the restrictions
imposed by the Valley Square Redevelopment Plan, sale of the Subject
Property to The Northland Company at a price of $2.50 per square foot
is appropri ate.
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
Agreements - Area Al and A2 (Exhibits "B" and "C" hereto) is hereby
approved subject to the restrictions set forth below:
a. The Northland Company 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
P rope rty ;
b. No use shall be made of the Subject Property which does not
conform to the Valley Square Redevelopment Plan;
c. The Northland Company shallgi ve 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;
d. 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;
e. The Northl and Company shall commence construct i On of the
improvements called for on the Subject Property as set forth
in the Private Development Agreements attached hereto as
Exhibits "B" and "C";
f. 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 Agreements attached hereto
as Exhibits "B" and "C";
g. 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 either completion
bonds or letters of credit for the project as set out in the
Private Development Agreements (attached hereto as Exhibits
"B" and "C") in such form as the HRA hereby approves, in
amounts not less that $11,900,000.00 or $12,900,000.00
depending on the option in the Agreement elected by Northland.
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Resolution 84-7 - Continued
December 11, 1984
h. There shall be no discrimination in the use of the Subject
Property because of race or religion, political or other
affiliations;
i. Prior to Maturity Date neither Northland nor any successor or
assign may convert or sell any portion of the Development
Property or Improvements as or for condominiums.
j. Northland may terminate the Agreement under Section 12.1, if
it determines within 60 days of its execution that construction
of the improvements is not practicable due to the application
of the Flood Plain Ordinance of the City of Golden Valley
however, the City and the HRA shall have the opportunity to
modify the existing or proposed flood control structures so
as to make the necessary land area for the improvements
available for construction.
k. 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.
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.
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 Agreements
for Areas Al and A2 (attached hereto as Exhibits "B" and "C").
4. The Valley Square Redevelopment Plan is hereby amended to the extent
that the Northland Company proposal embodied in the Private Development
Agreements (attached hereto as EXhibit~~ it.
Ray B. Stockman, Chair
ATTEST:
. rector
The motion for th adoption of the foregoing resolution was seconded by
Commissioner Ba n and upon a vote being taken thereon, the following voted
in favor thereof: Anderson, Bakken, Johnson, Stockman and Thompson; 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 84-7 - Continued
December 11, 1984
EXHIBIT "A"
Area A - Legal Description
All of Lot 12, IIBusch's Golden Valley Acresll Hennepin County, Minnesota;
And also, all that part of the Northwest quarter of the Southeast quarter
of Sect ion 31, Township 118, Range 21, lyi ng Northerly of 6th Avenue North,
(also known as Golden Valley Road and State Highway No. 55) and Easterly of
a line hereinafter referenced to as Line "A":
Commencing at the Northeast corner of the Southeast quarter of said
Section 31; Thence West along the North line thereof a distance of
1920.6 feet; Thence South at a right angle 140.70 feet; Thence Westerly
100.0 feet parallel with the Northerly line of State Highway No. 55, to
the point of beginning of aforementioned line IIAII; Thence Northwesterly
157.3 feet to a point in the North line of said southeast quarter, a
distance 158.9 feet West from point of commencement, and said Line "AII
there terminating.
Except for easements for roadways, drainage, utilities and walkways.
(Subject to verification by survey)