HRA RES 2000-08 - 00002028RESOLUTION NO. HRA 8-2000
A RESOLUTION DETERMINING THE NECESSITY FOR MODIFICATIONS TO THE
CONTRACT FOR PRIVATE DEVELOPMENT AND THE ESCROW AGREEMENT, BOTH
RELATING TO LOT 2, BLOCK 1, MAR LEN ADDITION, CITY OF FRIDLEY,
MINNESOTA, AND AUTHORIZING EXECUTION AND DELIVERY OF AMENDMENTS
TO SAID AGREEMENTS
BE IT RESOLVED by the Board of Commissioners (the "Commissioners") of Housing and
Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority") as follows:
Section 1. Recitals.
1.01. The Authority has entered into a Contract for Private Redevelopment dated December 9,
1999 (the "Redevelopment Contract"), with Fridley Main L.L.C. (the "Redeveloper") in order to
facilitate redevelopment of Lot 2, Block 1, Mar Len Addition, City of Fridley, Minnesota (the
"Property").
1.02. In order to facilitate implementation of the Redevelopment Contract, the Authority has also
entered into an Escrow Agreement dated December 23, 1999 (the "Escrow Agreement"), with the
Redeveloper and Old Republic Title Insurance Company, as escrow agent (the "Escrow Agent").
1.03. The Redevelopment Contract states that the Authority is prepared to assist the Redeveloper
with certain costs of the development of the Property, provided that certain conditions are met.
1.04. The Redevelopment Contract states that the Redeveloper is entitled to reimbursement for a
portion of specified site preparation costs (the "Site Improvements"), provided that certain conditions
are met. One condition is substantial completion of an office/warehouse/ processing facility
consisting of approximately 51,000 square feet and including landscaping, parking, and related
facilities (the "Minimum Improvements").
1.05. The Redevelopment Contract provides that any reimbursement for the Site Improvements
shall be (a) in the form of a grant and a loan; (b) issued in funds currently escrowed with the Escrow
Agent; and (c) issued after completion of the Minimum Improvements. The Redeveloper has
reported to the Authority that completion of the Site Improvements without earlier reimbursement is
not economically feasible given the condition of the Property and current market conditions.
1.06. The Redeveloper has requested that the Redevelopment Contract and the Escrow Agreement
be amended to allow reimbursement of up to two thirds of the costs of the Site Improvements prior to
the substantial completion of the Minimum Improvements.
HRA Resolution No. 8-2000 Page 2
Section 2. Findin�s.
2.01. The Authority hereby finds that the Redeveloper has made a good faith effort to locate
potential buyers or occupants for the Minimum Improvements in order to commence the Site
Improvements and the Minimum Improvements in a timely manner.
2.02. The Authority hereby finds that the condition of the Property and the current market
conditions render commencement of the Site Improvements not economically feasible at this time
unless reimbursement of eligible costs can be completed at an earlier date than originally
contemplated by the Authority and the Redeveloper.
2.03. The Authority hereby finds that redevelopment of the Property would best be facilitated if the
sum of $250,000.00 was released by the Escrow Agent in the form of a loan to the Redeveloper and
to be disbursed in accordance with an amended Escrow Agreement.
2.04. The Authority hereby finds that redevelopment of the Property would be further facilitated if
up to one half (1/2) of the principal of such loan was forgiven (and the interest due adjusted
accordingly) when the Redeveloper presents proof of substantial completion of the Minimum
Improvements and receives a Certificate of Completion, all according to the Redevelopment
Contract.
Section 3. Authorizations.
3.01. The Chairperson and the Executive Director of the Authority (the "Officers") are hereby
authorized to execute and deliver an Amendment to the Contract for Redevelopment and an
Amendment to the Escrow Agreement. The Amendments will substantially conform with the
Amendments presented to the Authority as of this date, with such additions and modifications as
those Officers may deem desirable or necessary as evidenced by the execution thereof.
3.02. Upon execution and delivery of the Amendments, the Officers and employees of the Authority
are hereby authorized and directed to take or cause to be taken such actions as may be necessary on
behalf of the Authority to implement the Redevelopment Contract and the Escrow Agreement, as
amended, and to further proceed towards the actions contemplated by these Agreements.
PASSED AND ADOPTED BY THE FRIDLEY HOUSING AND REDEVELOPMENT
AUTHORITY 1N AND FOR THE CITY OF FRIDLEY, MINNESOTA, THIS 17TH DAY OF
AUGUST, 2000.
LAWRENCE R. COMIV�RS, CHAIRPERSON
ATTEST:
WILLIAM W. BURNS, EXECUTIVE DIRECTOR