Agenda - Council - 09/27/2011 - Special

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DEVELOPMENT AGREEMENT The parties to this Development Agreement (the "Agreement ") are The Housing and Redevelopment Authority in and for the City of Ramsey, Minnesota a public body politic and corporate under the laws of the State of Minnesota (the "HRA "); the City of Ramsey, Minnesota (the "City "), a home rule charter city organized and existing under the constitution and laws of the State of Minnesota and F & C Ramsey, LLC, an Indiana limited liability company ( "Developer "). This Development Agreement is dated, for reference purposes, and is effective as of , 2011 (the "Effective Date "). This Agreement replaces the Development Agreement between the HRA, the City and Developer dated January 31, 2011, and the January 31, 2011 Development Agreement is hereby terminated and of no further force or effect. ARTICLE I RECITALS WHEREAS, the HRA owns the "Development Property," as defined below. WHEREAS, the Development Property is located in the Development District. The City established the Development District on August 27, 1985 pursuant to Minnesota Statutes, Sections 469.124 through 469.134. The City adopted the Development Program for the Development District on August 27, 1985, and the City has amended it from time to time. The most recent amendments to the Development Program were adopted on or about December 14, 2010. WHEREAS, Developer wants to acquire the Development Property from the HRA and construct the Minimum Improvements on the Development Property, but Developer has determined that it cannot acquire the Development Property and construct the Minimum Improvements on the Development Property without financial assistance from the City and the HRA. WHEREAS, the HRA and the City are entering into this Development Agreement with Developer to further the objectives of the Development Program and, particularly, to make the Development Property available for development by private enterprise in conformance with the Development Program. WHEREAS, the HRA had determined that 50% of the Minimum Improvements constitutes a Housing Development Project pursuant to the Act. WHEREAS, the HRA has adopted a housing program in connection with the Housing Development Project. WHEREAS, pursuant to the Act and the Tax Increment Act the City has the authority to issue bonds to finance all or a portion of the cost of the Housing Development Project. WHEREAS, the City believes that the Project and the fulfillment of this Agreement are in the best interests of the City and further the health, safety, morals and welfare of residents of 2695614v12