2013.11.19 EDA Meeting Packet (Special)AGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
• SPECIAL MEETING •
TUESDAY, NOVEMBER 19, 2013
IMMEDIATELY FOLLOWING THE REGULAR CITY COUNCIL MEETING
CRYSTAL CITY HALL
COUNCIL CHAMBERS
Call to order
2. Roll call
3. Consider approval of minutes from the October 1, 2013 regular meeting *
4. Consider a resolution approving Second Amendment to the Contract for Private
Redevelopment with Crystal Leased Housing Associates I, Limited Partnership
[Dominium entity for The Cavanagh Senior Apartments] *
5. Other business
6. Adjournment
* Materials attached
11/14/13 G:\EDA\Agendas\2013\11.19.docx
Minutes of the
Crystal Economic Development Authority
Regular Meeting
October 1, 2013
President Hoffmann called the regular meeting of the Crystal Economic Development Authority
to order at 6:33 p.m.
Upon call of the roll, the following members were present: Jim Adams, Julie Deshler, Mark
Hoffmann, Laura Libby, Casey Peak and Joe Selton.
The following staff members were present: Anne Norris, Executive Director; Patrick Peters,
Deputy Executive Director; John Sutter, City Planner/Assistant Community Development
Director; and Mike Norton, City Attorney.
Motion by Commissioner Adams (Libby) to approve the minutes from the September 3, 2013
regular meeting.
Motion carried.
The EDA considered a resolution authorizing the sale of a lot at 5657 Adair Avenue North to
Novak -Fleck for construction of a new house.
President Hoffmann opened the public hearing. No one came forward to speak on the matter, and
President Hoffmann closed the hearing.
Motion by Commissioner Peak (Deshler) to approve resolution 2013-16 authorizing the sale of a
lot at 5657 Adair Avenue North to Novak -Fleck for construction of a new house.
Motion carried.
The EDA considered a resolution approving the First Amendment to the Contract for Private
Redevelopment with Crystal Leased Housing Associates I, Limited Partnership [Dominium
entity for The Cavanagh Senior Apartments].
Motion by President Hoffmann (Libby) to approve Resolution #2013-17 approving the First
Amendment to the Contract for Private Redevelopment with Crystal Leased Housing Associates
I, Limited Partnership.
Motion carried.
Motion by Commissioner Peak (Deshler) to adjourn the regular meeting.
Motion carried.
The meeting adjourned at 6:43 p.m.
Mark Hoffmann, President
ATTEST:
Julie Deshler, Vice President
CEDA STAFF REPORT
CITY of Resolution approving Second Amendment to Contract for
CRYSTAL
Private Redevelopment for The Cavanagh Senior Apartments
FROM: Patrick A. Peters, EDA Deputy Executive Director Alt
TO: Anne Norris, Executive Director (for November 19, 2013, EDA Meeting)
DATE: November 15, 2013
RE: Consider a resolution approving Second Amendment to Contract for Private
Redevelopment with Crystal Leased Housing Associates I, Limited
Partnership [a Dominium Entity]
BACKGROUND
On December 18, 2012, the EDA approved a resolution authorizing execution of a Contract for
Private Redevelopment (CPR) and sale of Lot 1, Block 1, Cavanagh Park Addition to Crystal
Leased Housing Associates I, Limited Partnership [a Dominium Entity]. At its October 1
meeting, the EDA approved a resolution approving the first amendment to the CPR that
redefined the project as a 4 -story building, modified the zoning to R-3 Planned Development,
and revised the closing date on the property sale to Dominium to December 31, 2013.
Dominium has since informed the city that, due to circumstances in the bond market that are
beyond their control, they are not able to complete their bond financing in time for a December
closing. On the advice of the City's bond counsel, staff is recommending a second amendment to
the CPR acknowledging changes to the schedules for closing and construction. The amendment
contemplates closing on the sale of the property to Dominium by March 31, 2014; initiation of
construction by May 31, 2014; and completion of construction by August 31, 2015. The balance
of the provisions of CPR remain as originally approved except as modified by the first
amendment.
RECOMMENDATION
Staff requests EDA approval of a resolution approving second amendment to the Contract for
Private Redevelopment with Crystal Leased Housing Associates I, Limited Partnership.
ATTACHMENTS
° Resolution
° Second Amendment to Contract for Private Redevelopment
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
RESOLUTION NO.
RESOLUTION APPROVING SECOND AMENDMENT TO
CONTRACT FOR PRIVATE REDEVELOPMENT WITH
CRYSTAL LEASED HOUSING ASSOCIATES I, LIMITED PARTNERHSIP
BE IT RESOLVED BY the Board of Commissioners (the "Board"). of the
Economic Development Authority of the City of Crystal (the "Authority") as follows:
Section 1. Background.
1.01. The City of Crystal (the "City") and the Authority have heretofore
approved the establishment of Tax Increment Financing District No. 4 (the "TIF
District") within Redevelopment Project No. 1 (the "Project"), and have adopted a tax
increment financing plan for the TIF District to finance certain improvements within the
Project.
1.02. The Authority previously entered into a Contract for Private
Redevelopment dated as December 18, 2012 (the "Original Contract") between the
Authority and Crystal Leased Housing Associates I, Limited Partnership (the
"Redeveloper") under which the Authority agreed to convey to the Redeveloper certain
property within the Project described as Lot 1, Block, 1, Cavanagh Park Addition (the
"Redevelopment Property").
1.03. The Original Contract also provides that the Redeveloper will construct a
senior housing facility on the Redevelopment Property, and that the Authority will assist
such effort by issuing a tax increment revenue obligation secured by certain tax
increments from the TIF District.
1.04. The Authority approved the Original Contract by Resolution No. 2012-28
(the "2012 Resolution"), which also authorized issuance of a tax increment revenue
obligation in the form of the Taxable Tax Increment Revenue Note, Series 2013 (the
"Series 2013 TIF Note").
1.05. The parties have determined a need to modify the Original Contract in
certain respects, and to that end have prepared a Second Amendment to Contract for
Private Redevelopment (the "Second Amendment").
1.06. The Board has reviewed the Second Amendment and has determined that
it is in the best interest of the Authority to enter into the Second Amendment.
Section 2. Approvals.
2.01. The Board hereby approves the Second Amendment and authorizes the
President and Executive Director to execute such document in substantially the form on
file with Authority, subject to modifications that do not alter the substance of the
transaction and are approved by such officials, provided that execution of the Agreement
by such officials is conclusive evidence of their approval.
Approved by the board of commissioners of the Economic Development
Authority of the City of Crystal this 19th day of November, 2013.
President
ATTEST:
Secretary
432357v1 CR150-199 2
SECOND AMENDMENT TO
CONTRACT FOR PRIVATE REDEVELOPMENT
THIS SECOND AMENDMENT TO CONTRACT FOR PRIVATE
REDEVELOPMENT, made on or as of the 19th day of November, 2013, by and between
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL, a public
body corporate and politic established pursuant to Minnesota Statutes, Sections 469.090
to 469.1081 (the "Authority"), and Crystal Leased Housing Associates I, Limited
Partnership, a Minnesota limited partnership (the "Redeveloper").
WITNESSETH:
WHEREAS, the Authority was established by the City of Crystal (the "City")
under Minnesota Statutes, Sections 460.090 to 469.1081 (the "EDA Act"), and has all the
powers of a housing and redevelopment authority under Minnesota Statutes, Sections
469.001 to 469.047 (the "HRA Act"); and
WHEREAS, the Authority has undertaken a program to promote the
redevelopment of land which is blighted and underutilized within the City, and in this
connection created a redevelopment project known as the Redevelopment Project No. 1
(the "Redevelopment Project") pursuant to the HRA Act; and
WHEREAS, pursuant to the HRA Act, the Authority is authorized to acquire real
property, or interests therein, and to undertake certain activities to facilitate the
redevelopment of real property by private enterprise; and
WHEREAS, the Authority and Redeveloper entered into that certain Contract for
Private Redevelopment dated as of December 18, 2012, as amended by a First
Amendment thereto dated October 1, 2013 (the "Contract") under which the Authority
acquired the property described as Lot 1, Block 1, Cavanagh Park Addition, according to
the recorded plat thereof, Hennepin County, Minnesota (the "Redevelopment Property");
and
WHEREAS, under the Contract, the Authority agreed to convey the
Redevelopment Property to Redeveloper upon satisfaction of certain terms and
conditions, and to provide certain financial assistance to Redeveloper in order to facilitate
development of a senior housing facility on the Redevelopment Property; and
WHEREAS, the parties have determined a need to further modify the Contract in
certain respects as described herein;
NOW, THEREFORE, in consideration of the premises and the mutual obligations
of the parties hereto, each of them does hereby covenant and agree with the other as
follows:
1. Section 3.3(c) of the Contract is modified to read as follows:
(c) The closing on conveyance of the Redevelopment Property from the
Authority to the Redeveloper (the "Closing") shall occur within 15 business days after
satisfaction of the conditions specified in this Section, but no later than March 31, 2014.
2. Section 4.3 of the Contract is modified to read as follows:
Section 4.3. Commencement and Completion of Construction. Subject to
Unavoidable Delays, the Redeveloper must commence construction of the Minimum
Improvements by May 31, 2014, and must substantially complete construction of the
Minimum Improvements by August 31, 2015. All work with respect to the Minimum
Improvements to be constructed or provided by the Redeveloper on the Redevelopment
Property shall be in conformity with the Construction Plans as submitted by the
Redeveloper and approved by the Authority.
The Redeveloper agrees for itself, its successors and assigns, and every successor
in interest to the Redevelopment Property, or any part thereof, that the Redeveloper, and
such successors and assigns, shall promptly begin and diligently prosecute to completion
the redevelopment of the Redevelopment Property through the construction of the
Minimum Improvements thereon, and that such construction shall in any event be
commenced and completed within the period specified in this Section 4.3 of this
Agreement. Subsequent to conveyance of the Redevelopment Property, or any part
thereof, to the Redeveloper, and until construction of the Minimum Improvements has
been completed, the Redeveloper shall make reports, in such detail and at such times as
may reasonably be requested by the Authority, as to the actual progress of the
Redeveloper with respect to such construction.
3. The Contract remains in full force and effect and is not modified
except as expressly provided herein.
435255vl CR150-199 2
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly
executed in its name and behalf and its seal to be hereunto duly affixed and the
Redeveloper has caused this Agreement to be duly executed in its name and behalf on or
as of the date first above written.
ECONOMIC DEVELOPMENT
AUTHORITY
OF THE CITY OF CRYSTAL
Mark Hoffmann
Its President
Anne Norris
Its Executive Director
STATE OF MINNESOTA )
SS.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
November, 2013, by Mark Hoffmann and Anne Norris, the President and Executive
Director of the Economic Development Authority of the City of Crystal, a public body
politic and corporate, on behalf of the Authority.
Notary Public
435255v1 CR150-199 3
CRYSTAL LEASED HOUSING
ASSOCIATES I, LIMITED
PARTNERSHIP
By Crystal Leased Housing Associates I,
LLC, its general partner.
Its
STATE OF
SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
November, 2013 by , the of Crystal
Leased Housing Associates I, LLC, the general partner of Crystal Lease Housing
Associates I, Limited Partnership, a Minnesota limited liability company, on behalf of the
limited partnership.
Notary Public
435255vl CR150-199 4