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HRA Special Session Meeting Date: 10/16/2012 By: Darren Lazan, Housing & Redevelopment Authority Information Title: Consider Alternative Development Scenario - Sunwood Retail 5. 1. Background: On a number of occasions over the last 18 months, the HRA has considered a number of items related to the development of the area known as the Sunwood Retail area. This approximate five -acre parcel is located within the Sunwood Drive re -alignment area, bound on the north and east by the new Sunwood Drive, on the west by Armstrong Boulevard, and on the south by property owned by Sophia Ramsey, LLC. For reasons unknown, the previous construction of Sunwood Drive was incorrect, and the current location is unsustainable, as the executed joint powers agreement with Anoka County, and the physical constraints of the current location relative to the intersection of Armstrong Boulevard and US Highway 10, preclude the current roadway alignment from remaining. It has been contemplated that this area, currently owned by the HRA, would be re -platted, developed by the HRA and sold to three end -users. Agreements with these users are currently at different stages of completion. Also contemplated in this project, is a resolution to significant concerns and damages expressed by Sophia Ramsey, LLC related to the loss of access they have realized through the roadway project. Understanding the significant value of this user to the overall project, the development team has worked with Sophia Ramsey for the last 12 months to arrive at a mutually acceptable solution to the issues at hand. This resolution includes: • The contribution of a small parcel of land adjacent to their parcel • The contribution of a larger share of the vacated Sunwood Drive • The reconstruction of a shared access drive serving their lost connection to Sunwood. • Construction of additional parking to serve their two parcels and relative current parking constraints • Various construction coordination items related to lighting, irrigation, seed/sodding, stormwater treatment, etc. After considerable discussion and a number of meetings to consider the matter, the HRA approved the purchase agreement and sale of Lot 3, Block 1, COR TWO to M&W Holdings, an entity owned by Jeff Wise, a sitting HRA Member. The issue of any potential conflict of interest related to this sale was addressed on a number of occasions, and the process outlined by the city attorney was followed and documented in a resolution passed on February 14th, 2012. On October 9th, 2012, the HRA, in a regular meeting, voted 3-2 against entering into an agreement to purchase M&W's existing property, and tabled the agenda item related to the sale of Lot 3 to M&W indefinitely. Acting on the direction form City Council and the HRA who previously approved both the acquisition and sale of these properties, the development team has spent considerable time and expenses on outlining, negotiating, and documenting the development of the project. Subsequent purchase agreements, term sheets, and negotiations with buyers of lots 4 and 5 have contemplated the sale of Lot 3 initiating the development, and performing certain improvements necessary for all parties in the development. Notification: