Agenda - Council - 04/28/2020 - Laserfiche WebLink

Home

Buyer • Buyer must obtain site plan approval and a certificate of occupancy for the construction of a minimum 60-unit 4-story hotel with restaurant compliant with COR zoning requirements prior to January 1, 2022. • Buyer must maintain proof of sufficient financing from the date of closing until issuance of a certificate of occupancy. Said proof shall be in the form a letter of credit in an amount equal to 110% of the value of construction remaining to be completed, or a sworn statement from the bank(s) financing the development indicating that Buyer has cash accounts and/or loan proceeds sufficient to cover 110% of the value of construction remaining to be completed. The form for the proof of financing is subject to approval by the City. If Buyer utilizes a sworn statement in lieu of a letter of credit, the City reserves the right to periodically request updated statements throughout the construction period of the project until a certificate of substantial completion is issued. . Seller may impose a separate penalty of $311,020 against the Property if site plan is not approved and the certificate of occupancy is not obtained pursuant to the deadline set forth above. The penalty is due upon written notice to Buyer from Seller of the failure to satisfy a contingency. In the event the penalty is not paid within 30 days of receipt of the notice, Seller may, but is not required to, certify the penalty to Anoka County as an assessment against the Property. • Buyer waives any and all rights under Minnesota Statutes, chapter 429, and any other applicable law, including any right to notice of hearing and hearing, the right to object, and the right to appeal the assessment. Buyer further waives any requirements of the City Charter that may apply to said assessment. . As an alternative to imposition of a financial penalty and not in addition thereto, Seller may re-enter and take physical possession of the Property. Title to the Property shall be restored in Seller, and Buyer shall execute whatever documents and undertake whatever steps are necessary to establish and confirm Seller's fee simple interest in the Property free of any claims or encumbrances, including mechanic's liens. Funding Source: This case is being handled as part of normal Staff duties. If financial assistance is provided, TIF District 14 will also be a funding source. Recommendation: The EDA has formally recommended approval of the Business Subsidy, TIF Development Agreement and the Right of Re -Entry Agreement protecting the city interest in the development property and supporting the early land sale transaction. Action: Motion to adopt Resolution #20-082 Approving a Business Subsidy and Authorizing Execution of a Development Agreement, Right of Re -Entry Agreement and Terms of an Interfund Loan; subject to City Attorney approval as to legal form. Attachments Resolution #20-082 TIF Development Agreement Right of Re -Entry Agreement Updated Ehlers Analysis Memo Original Ehlers Analysis Memo TIF Projections (Estimated Reimbursement Schedule) Inbox Sean Sullivan (Or Tim Gladhill g nator) Form Review Reviewed By Date Sean Sullivan 04/23/2020 10:09 AM Tim Gladhill 04/23/2020 11:53 AM