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HRA 12/13/1984 HOUSING & REDEVELOPMENT AUTHORITY MEETING THURSDAY, DECEMBER 13, 1984 SID INMAN \ Ll CityING OF of FridleyBONDS AGENDA HOUSING & REDEVELOPMENT AUTHORITY MEETING DECEMBER 13, 1984 7:00 P.M. Location: Council Chambers (upper level ) CALL TO ORDER: ROLL CALL: APPROVAL OF MINUTES: Housing & Redevelopment Authority Minutes: November 8, 1984 ADOPTION OF AGENDA: PUBLIC HEARING REGARDING ENTERING INTO A DEVELOPMENT AGREEMENT WITH HEARTLAND REALTY INVESTORS, INC 1 CONSIDERATION OF A RESOLUTION #HRA 20-1984 APPROVING DEVELOPMENT AGREEMENT WITH HEARTLAND REALTY INVESTORS, INC 2 - 2T CONSIDERATION OF APPROVAL OF LEASE OF HARDWARE BUILDING (214 MISSISSIPPI STREET) BETWEEN HRA AND THE CITY OF FRIDLEY 3 - 3B DISCUSSION REGARDING REFINANC4 (Information at meeting) FINANCIAL STATEMENT 5 CHECK REGISTER 6 RECEIVE 1985 SCHEDULE OF HRA MEETINGS 7 ADJOURNMENT: � I 1 CITY OF FRIDLEY HOUSING & REDEVELOPMENT AUTHORITY MEETING NOVEMBER 8, 1984 CALL TO ORDER: Chairperson Commers declared the November 8, 1984, Housing & Redevelopment Authority meeting to order at 7:03 p.m. ROLL CALL: Members Present: Larry Commers, Elmars Prieditis, Carolyn Svendsen, Duane Prairie Members Absent: Walter Rasmussen Others Present: Nasim Qureshi , HRA Director Sid Inman, City Finance Director Dave Newman, City Attorney Chris Wegemer, General Manager, Storer Cable Keith Hennek, System Plant Manager, Storer Cable APPROVAL OF OCTOBER 11 , 1984, HOUSING & REDEVELOPMENT AUTHORITY MINUTES: MOTION BY MR. PRAIRIE, SECONDED BY MR. PRIEDITIS, TO APPEOVE THE OCT. 11, 1984, HOUSING & REDEVELOPMENT AUTHORITY MINUTES AS WRITTEN. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. APPROVAL OF AGENDA: Mr. Commers stated that since representatives from Storer Cable were at the meeting, he would request that they be first on the agenda. MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO APPROVE THE AGENDA AS AMENDED. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 1. RELOCATION OF OVERHEAD CABLE TO UNDERGROUND CABLE BY STORER CABLE: Mr. Wegemer, General Manager, Storer Cable, stated that approximately ten days ago, they received a call from the City that Storer was required to move on the Mississippi Project. .He stated this was the first notification Storer has received since their request for reimbursement. He stated the HRA had received a letter from Storer in May with a draft reimbursement of their expenses. He stated he had reviewed the HRA's June meeting minutes HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 8, 1984 PAGE 2 in which the HRA decided to deny Storer's request for reimbursement. He stated that apparently, the basis for that decision might have been based on an erroneous recommendation from City Staff; namely, that the franchise agreement with the City states that "removal or replacement of service lines shall be at the expense of Storer". Mr. Wegemer read the following from the franchise agreement, Section 6.05, Undergrounding of Cable: "The placement of cable underground is encouraged. Cables shall be installed underground at Storer's expense where all existing utilities are already underground. Previously installed aerial cable shall be placed underground in concert with other utilities when such other utilities may convert from aerial to underground construction." Mr. Wegemer stated there was no explanation that this had to be done at Storer's expense, and he would assert that as being an intentional distinction. He stated this might have been an oversight on the City's part and he wanted to bring this to the HRA's attention as it was a concern of Storer's as they start the Mississippi project. Mr. Commers stated the cost for the project provided to the HRA previously was $17,282. Mr. Keith Hennek, System Plant Manager for Storer, stated that figure was correct. That figure included labor and materials. Mr. Wegemer stated that was a summer price. Had they received a response from the City early enough before Oct. 1 when the winter prices went into effect, they could have done the project at that price. Now the price will increase with the winter rates. He stated he understood NSP was relocating some of its lines underground right now. How quickly did the City plan on having this done? If there was no urgency, the City could save money by waiting until the first thaw to ahve the cable relocated. Mr. Qureshi stated the timing was not a big problem. He stated the question here was one of policy as to whether Storer should be paying for the relocation of the overhead cable or the HRA. Mr. Qureshi stated Storer is using public right-of-way. It is provided that whenever the City makes improvements, the utility has to do the relocation at its cost. The City is putting everything underground, and that is why Storer should put their cable underground also. It was not specifically mentioned in the franchise agreement that Storer pay for it. Mr. Conmers stated that apparently the HRA's legal counsel had not had a chance to review this matter. Since it was Storer's claim that the HRA made its decision based on the wrong interpretation of some languange in the franchise agreement, and since °there was not a timing problem, he would suggest that their legal counsel review this before the next meeting. The HRA members agreed this suggestion was appropriate. HOUSING& REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 8, 1984 PAGE 3 MOTION BY MR. PRIEDITIS, SECONDED BY MS. SVENDSEN, TO REFER THE MATTER OF WE-RELOCATION OF OVERHEAD CABLE TO UNDERGROUND CABLE BY STORER CABLE COMMUNICATIONS TO LEGAL COUNSEL FOR REVIEW AND INTERPRETATION OF THE FRANCHISE AGREEMENT BETWEEN THE CITY AND STORER CABLE. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Commers asked that their legal counsel have a written report available for the next meeting. Mr. Wegemer thanked the HRA for their consideration in this matter. 2. CONSIDERATION OF AN AGREEMENT BETWEEN THE HRA AND HEARTLAND REALTY INVESTORS, INC. , OWNER OF HOLLY SHOPPING CENTER: Mr. Qureshi stated the HRA members had received in their agenda packets an outline of the agreement he has worked out with the new owners of the Holly Shopping Center, Heartland Realty. Since then, they have formalized it into a formal agreement that has been prepared by O'Connor & Hannon. Essentially, it incorporated the conditions of the outline received in the agenda packet and was basically what they had discussed at the last HRA meeting. Mr. Commers stated he thought the procedure the HRA had been following would negate the necessity of a public hearing. Mr. Qureshi stated it has been suggested that a public hearing might not be required; however, Jim O'Meara did say a public hearing should be held and a suggested date was the Dec. 13 HRA meeting. Mr. Commers asked Mr. Qureshi to briefly summarize the proposal . Mr. Qureshi stated that basically the proposal said that the Holly Center owners will commit about $350,000 to make improvements to their property, $100,000 out of that they are willing to accept as assessments. The rest of it they will finance privately. The work that is going to be done on the building, essentially the signage and the facade improvements and pylon, will be done by the Holly Center owners. Some of the curbing, landscaping, and other improvements along Mississippi and the greenway will be done by the HRA and assessed to the owners, that cost to not exceed $100,000. Mr. Qureshi stated there is a plan the City is requiring from the Holly Center owners along Mississippi St. for improving the traffic situation. The Holly Center owners are buying the gas station property which the HRA will buy and sell back, retaining a portion for the Mississippi St. improvement. Mr. Commers asked what the HRA's net contributions to this project were overall . ' Mr. Qureshi stated they are looking at a total cost of approx. $225,000. He stated the other element is that the Holly Center owners are spending $350,000. The Holly Center owners have also agreed to accept a minimum HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 8, 1984 PAGE 4 evaluation for the shopping center starting Jan. 2, 1985, of $21/2 million. That brings to the HRA roughly $40,000 a year extra, and that is how the HRA will actually be able to pay this back in 5-6 years. Mr. Qureshi stated that if the HRA feels this agreement is satisfactory, they should make a motion authorizing their approval of the resolution. The next step would be to authorize Staff to publish the notice of public hearing for Dec. 13. The HRA members questioned the need for approval of the agreement at this meeting if a public hearing was to be held at the next meeting. Mr. Qureshi stated that if there was any hesitation, maybe the HRA should approve the agreement in concept subject to the public hearing with final approval at the public hearing. Mr. Commers stated he thought the HRA members were agreeable in concept. They have done that before. If they are going to have the public hearing. it might be more prudent to wait until then to give final approval . MOTION BY MR. PRIEDITIS, SECONDED BY MR. PRAIRIE, TO AUTHORIZE STAFF TO PUBLISH THE NOTIFICATION OF PUBLIC HEARING FOR DEC. 13, 1984, RELATING TO THE AGREEMENT BETWEEN THE HRA AND HEARTLAND REALTY INVESTORS, INC. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. Mr. Commers stated that Staff could relay to Heartland Realy Investors, Inc. , that it was the concensus of the HRA that it was all right if Heartland Realty Investors wanted to go ahead and sign the agreement. 3. "DISCOVER DEVELOPMENT OPPORTUNITY - CITY OF FRIDLEY": Mr. Qureshi stated Staff had given the HRA a mock-up of this brochure at a previous meeting, and this was now the formal printing. He stated this was what the City will be distributing and putting into the community brochure with a cover letter. Hopefully, this will generate some interest in develop- ment in the southwest quadrant. Mr. Qureshi stated that if any of the tenants in the area want to know what is happening, the HRA members can say that the City is making it known that this land is available, but that there are no proposals at this time. He stated this time, the City's approach will be a little more prudent. They will screen the potential developers and a proposal will not be brought before the HRA until the City feels a developer is really financially sound and can really produce a good package. He stated that at this time, none of the tenants have been advised of this brochure and he did not feel it was a good idea to advise them that the City was doing this , because even with all this promotion, there is the possibility that nothing will happen anyway. HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 8, 1984 PAGE 5 Mr. Prieditis stated the tenants or owners will probably find out about this anyway. Somehow someone is going to see this brochure and rumours • will start going around. Why not just write a statement of what Mr. Qureshi had just said--that at this point, there are no proposals and when there is a solid proposal , the tenants will be informed. Mr. Prairie agreed and stated he thought the tenants want to be made aware of what is going on. Mr. Qureshi stated he still disagreed with that approach. Mr. Inman stated he agreed with Mr. Qureshi . It was not as if this was some- thing brand new or something they are just starting. The other thing that has changed is the difference in this center. Before,the center was in a loss position and now tenants are fighting to get in there across the street from Target and the new Holly Center. Mr. Qureshi stated that when they do get a formal proposal that they think has good possibilities, they can make sure that they protect the interests of the existing tenants as much as they reasonably can. Ms. Svendsen stated she agreed with what Mr. Qureshi was saying, but on the other hand, the HRA members are asked questions every day, and she did not want them to be perceived as hiding anything when they are not. Mr. Qureshi stated this was a redevelopment district. The City has been pro- moting it, but so far nothing has happened. The tenants will the first to know if something really happens on that property, and the City and the HRA will do everything within reason to protect their interests. Mr. Prieditis stated his concerns had been in terms of a courtesy message to the tenants, but he could see where this could be rather difficult. He was willing to accept Mr. Qureshi 's explanation and agreed the HRA should proceed the way he had described. Mr. Qureshi stated he firmly believed in not disturbing the tenants until Staff was satisfied that a developer has the strength and ability to put a good proposal together. Then, before anything is approved, they can make sure they get public input. Ms. Svendsen stated she also agreed with Mr. Qureshi . It would be fine if people were able to perceive a letter the way it was intended, but there was a great opportunity for the tenants to misinterpret that letter. That would make things worse instead of better. Mr. Prairie stated he could see advantages and disadvantages to notifying the tenants. HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 8, 1984 PAGE 6 Mr. Commers stated this was certainly a legitimate issue, but at this point, he felt it was the concensus of the HRA that they go forward with the mailing of the brochure and hope there was no adverse developments as a result of not communicating specifically or especially with anyone. The HRA members thought the brochure was a nice looking brochure and very well done. They received it and approved it. 4. FINANCIAL STATEMENT FOR PERIOD OF JAN. 1 , 1984, TO NOV. 8, 1984: Mr. Inman reviewed the financial statement which included a recap of the billing presented at the last meeting which was not approved at that meeting. MOTION BY MR. PRAIRIE, SECONDED BY MS. SVENDSEN, TO AUTHORIZE PAYMENT OF THE BILL FOR SERVICES IN THE TARGET PROJECT AREA THROUGH SEPT. 30, 1984, TOTALLING $163,530.15, AS STATED IN THE FINANCIAL STATEMENT. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. MOTION BY MS. SVENDSEN, SECONDED BY MR. PRIEDITIS, TO AUTHORIZE PAYMENT OF THE BILL FOR PERSONAL SERVICES AND OPERATING EXPENSES IN THE AMOUNT OF $46,198.43. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE MOTION CARRIED UNANIMOUSLY. 5. OTHER BUSINESS: a. Municipal Warehouse Liquor Store Mr. Inman stated they are rapidly finishing the hardware store. The building was in pretty bad shape because it had sat empty for such a long time. They are looking at Dec. 13 and 14 as the grnad opening dates for the municipal warehouse liquor store. They would be looking at approving the lease before the grand opening. b. Contest Mr. Qureshi stated that at the last meeting, they had discussed the idea of a contest to get some ideas for a design for the Mississippi/Highway 47 intersection. He stated he had given the HRA members some drafted materials regarding the contest for their review. He stated he would welcome their input. HOUSING & REDEVELOPMENT AUTHORITY MEETING, NOVEMBER 8, 1984 PAGE 7 ADJOURNMENT: MOTION BY MS. SVENDSEN, SECONDED BY MR. PRAIRIE, TO ADJOURN THE MEETING. UPON A VOICE VOTE, ALL VOTING AYE, CHAIRPERSON COMMERS DECLARED THE NOV. 8, 1984, HOUSING & REDEVELOPMENT AUTHORITY MEETING ADJOURNED AT 8:45 P.M. Respectfully submi ted, • • Lynne'Saba Recording Secretary 2B BND-fridley DEVELOPMENT AGREEMENT S THIS AGREEMENT is dated , 19M is by and between the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, and ----I-n-- vsto:c . --ire`:;__..a.__-:tirrnaao-t-e---_-ce-rpo-ra-tian, and provides as follows : Section 1 . Definitions . As used in this Agreement , the following terms have the following respective meanings : "Agreement" means this Development Agreement . "Authority" means the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota . "City" means the City of Fridley, Minnesota . "Company" means Heartland Realty I-nvestors , Inc. , a Minnesota corporation, or its successors or assigns of this Agreement . "Holly Shopping Center" means the shopping center and real property on which it is situated ( including all addi- tions to or subtractions from such real property which may occur from time to time by the Parties ' respective perfor- mance of the terms of this Agreement ) , all owned by the Company and located at the northwest corner of the intersec- tion of University Avenue and Mississippi Street in the City. "Parcel A" means the approximately 14, 305 square feet of real property located on the northwest corner of the inter- section of University Avenue and Mississippi Street in the City, currently the site of an abandoned gas station, as legally described in the attached Exhibit A, all to be con- veyed by the Company to the Authority under Section 2 of this Agreement . - "Parcel B" means the portion of Parcel A which is legally described in the attached Exhibit B and which is to be reconveyed to the Company by the Authority pursuant to Section 3 of this Agreement following completion thereon by the Authority of certain public improvements specified in this Agreement . "Parcel C" means the real property legally described in the attached Exhibit C, which is to be conveyed to the Authority by the Company, and upon which certain public right-of-way and greenway improvements are to be constructed under this Agreement. 2C "Party" means either the Company or the Authority. "Parties" means the Company and the Authority. Section 2. Conveyance of Parcels A, - and C to Authority. The Company shall purchase Parcel A (described in Exhibit A. ) . On or before March 1, 1985, the Company shall sell to the Authority, and the Authority shall purchase from the Company, Parcel A and Parcel C in fee simple. The purchase price for Parcel A shall be $90,000, and the purchase price for Parcel C shall be $2. 50 per square foot. Section 3. Authority to Make Public Improvements on Parcel A; Reconvevance of Parcel B to Company. Fo: lcwing the conveyance by tne Company to the Authority of Parcel A pursuant to Section 2 of this Agreement , the Authority shall clear Parcel A of all existing buildings, structures and other improvements . The Authority shall also use its :est efforts to cause the City to vacate the access road wnich currently runs generally along the northern and western boundaries of Parcel A, and thereafter the Authority shall commence to construct parking improvements on Parcel B. suitable for use as parking for the Holly Shopping Center . Upon the completion of the improvements specified in this Section and upon the compliance by the Company with Sections 8 and 11 hereof , the Authority shall sell Parcel P. to the Company, and the Company shall purchase Parcel B from the Authority, at a purchase price of $2 . 50 per square foot . Section 4 . Pubic Improvements en Parce: C. Following the conveyance of Parcel C to tne Authority by the Company pursuant to Section 2 of this Agreement , the Authority shall cause the following improvements to be constructed thereon (or , if any of the following improvements are to be under- taken by the City, the Authority shall use its best efforts to cause the City to undertake and complete the same ) : (a ) The portion of Mississippi Street abutting the Holly Shopping Center shall be widened and/or other traffic improvements shall be made thereto; and (b) Greenway improvements shall be constructed by the Authority substantially as shown on the schematic which is attached to and made a part of this Agreement as Exhibit D. Related landscaping improvements shall also be made. Section 5. Additional Public Improvements . As shown cn the attached Exhibit D, the Authority shall undertake and complete (or if such improvements are to be performed by the City, then the Authority will use its best efforts to cause the City to undertake and complete such improvements ) the - 2 - 2D construction of the greenway and general traffic improve- ments shown on the attached Exhibit D. Such greenway im- provements shall include a greenway extending toward and up to the Holly Shopping Center from Mississippi Street , sub- stantially as shown on the attached Exhibit D. Section 6 . Authority ' s Obligations Contingent. The Authority ' s obligation to construct any of the public im- provements provided in this Agreement shall be contingent upon (a) the Company ' s transfer to the Authority of Parcels A and C in accordance with Section 2 of this Agreement and (b) the Company' s compliance with Sections 8 and 11 hereof . If, following purchase of Parcel A and/or Parcel C by the Authority pursuant to Section 2 of this Agreement , the Company fails to comply with any of the provisions of Section 8 or 11 hereof , the Authority shall have the option to require the Company to repurchase from the Authority Parcel A, Parcel B, or Parcel C, or any combination of such Parcels , at a purchase price of $2 . 50 per square foot in the case of Parcel B or Parcel C and $90 , 000 in the case of Parcel A, and the Company hereby agrees to repurchase the same. The Authority shall also have the right to proceed with its rights and obligations hereunder and to insist upon the performance by the Company of its obligations hereunder . Section 7 . Completion of Public Improvements . Subject to Section 6 hereof , all public improvements , whether under- taken by the Authority or the City, shall be completed no later than December 31 , 1986 . Section 8 . Improvements to Holly Shopping Center by Company. On or before December 31 , 1985 , the Company shall complete the following improvements to the Holly Shopping Center : (a) repair of roof ; (b) improvement and installation of facade and signage; (c) purchase of Parcel B from the Authority pur- suant to Section 3 hereof ; (d) improvement and renovation of pylon sign; (e) improvement of parking lot ; ( f) additional parking lot landscaping; and (g) parking lot lighting modification and improve- ment . - 3 - 2E The foregoing improvements shall be made in the order speci- fied above. Prior to making any such improvement , the Com- pany shall present plans therefor to the Authority for prior approval , together with an estimate of the cost of such improvement . Following the completion of each improvement , the Company shall certify to the Authority the actual cost incurred in making such improvement . The Parties agree that the Company may include in the cost of any improvement any architectural, engineering or related expenses necessary to the planning and completion of such improvement , and the Parties further agree that the Company shall be obligated under this Agreement to spend no more than a total of $350 , 000 for ( 1) the costs of such improvements and for ( 2 ) the public improvement costs to be paid by the Company pur- suant to Section 9 hereof . The Company shall undertake and complete the foregoing improvements in the order listed above but shall have no obligation to make any subsequently listed improvement if the sum of all other higher priority improvements ( together with the amount to be assessed for public improvements pursuant to Section 9 hereof ) exceeds $350 , 000 . Section 9 . Company Petition for Public Improvements ; Agreement to Pay Costs Thereof . The Company hereby repre- sents that it is the sole owner of 100% of the property to be benefited by the public improvements to be completed by the Authority or the City pursuant to this Agreement . The Company hereby petitions the Authority and the City to make such improvements in accordance with this Agreement and hereby agrees to be assessed and to accept assessments for such improvements in the amount of the cost thereof , but not exceeding $100 , 000 ; provided, however , that the Company shall not be assessed for the improvements to be made to Parcel A under this Agreement , and the cost of such improve- ments shall not be included in determining whether the fore- going $100 ,000 maximum assessment has been exceeded. The Company hereby grants to the Authority and the City the right to enter upon the Holly Shopping Center in order to undertake and complete the public improvements specified in or contemplated by this Agreement . Section 10 . Company to Maintain Landscaping and Green- ways . The Company hereby agrees that it shall maintain all landscaped and greenway areas which are constructed pursuant to this Agreement . The Company further agrees that, in the event of its failure to comply with the foregoing sentence , the Authority or the City, upon 15 days ' prior written notice to the Company, may do so in the Company ' s stead, and the Company shall be responsible and liable for the costs so incurred by the Authority or the City, and upon demand therefor , the Company shall immediately pay such costs to the Authority or the City, as the case may be, failing which - 4 - 2F payment , the City shall have the right to assess such costs against the Holly Shopping Center . Section 11 . Assessment Agreement;. In consideration of this Agreement , the Company agrees to execute and deliver to the Authority, on or before D.e-ceib -15. 19$4 , an Assessment Agreement substantially in the form attached hereto and made a part hereof as Exhibit E. • Section 12. Effective Date Hereof ; Filing of This Agreement . This Agreement shall not be effective unless and until the Board of Commissioners of the Authority shall have conducted the public hearing hereon required by Minnesota Statutes , Section 462 . 525 , and shall have given final approval hereto, whereupon, and upon the execution hereof by the Parties , this Agreement shall be filed in the office of the Anoka County Recorder and/or Registrar of Titles , as appropriate, against the real property described in Attach- ment A to Exhibit E hereof . IN WITNESS WHEREOF, each Party has caused its duly authorized representative or representatives to execute this Agreement as of the day and year first above written. H 1 • • STOR-S-, INC, By R. William--Water , Its _President HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By Lawrence R. Commers, Chairman of the Board of Commissioners By - Nasim M. Qureshi Director - 5 - 2G STATE OF MINNESOTA) ss COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 1984 by H. William Walter , Pees-i- den-t---of-Heartland Realty Investors,- Inc.,., _a Minnesota cot-pc- ration, on behalf of said corporation. Notary Public • - 6 - 2H STATE OF MINNESOTA) ss COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 198 , by Lawrence R. Commers , and Nasim M. Qureshi , the Chairman and Director , respec- tively, of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, on behalf of said Authority. Notary Public • - 7 - 2 I Exhibit A Legal Description of Parcel A Parcel A consists of the real property located in the City Of Fridley, Anoka County, Minnesota, legally described as follows : The south 120 feet of the east 120 feet of Lot 18, Block 5, Rice Creek Plaza South Addition, subject to easements of record. 2J Exhibit B Legal Description of Parcel B Parcel B consists of the real property located in the City of Fridley, Anoka County, Minnesota, legally described as follows : That part of Lot 18, Block 5, Rice Creek Plaza South Addition described as follows. Beginning at a point on the east line of said lot 18 distant 70 feet north of the southeast corner of said Lot 18; thence west parallel with and 70 feet north of the south line of said Lot 18 a distance of 20 feet; thence south, at right angles, a distance of 30 feet, thence west along a line parallel with and 40 feet north of the south line of said Lot 18 a distance of 100 feet; thence north parallel with and 120 feet west of the east line of said Lot 18 a distance of 80 feet; thence east parallel with and 120 feet north of the south line of said Lot 18 to the east line of said Lot 18; thence south along said east line to the point of beginning. Subject to easements of record. B - 1 2K Exhibit C Legal Description of Parcel C Parcel C consists of the real property located is the City of Fridley, Anoka County, Minnesota, legally described as follows : That part of Lot 18, Block 5, Rice Creek Plaza South Addition described as follows. Beginning at the southwest corner of said Lot 18; thence north along the west line of said Lot 18 a distance of 25 feet; thence east parallel with and 25 feet; north of the south line of said Lot 18 a distance of 390 feet; thence north at right angles a distance of 15 feet; thence east parallel with and 40 feet north of the south line of said Lot 18 to a point 120 feet west of the east line of said Lot 18; thence south parallel with and 120 feet west of the east line of said Lot 18 to the south line of said Lot 18; thence west along said south line to the point of beginning. Subject to easements of record. C - 1 Schematic for Greenway Traffic 2L and Related Improvements ..,...7# \ Z\\./-- \ _7,.' yr, ,-- -4-- / , / z# o. - 413 - Z ,,/ 1*2 O a w% \ ..,. * , foe. .840 ii , — .I•lil li _ i \'�, VEXHIBIT1,..41.. , 1 D ..-1 'Z. ...., 1 1 ; ,t. 6. 1,4 Z „, iH greenway--> •, 6�. / � •. r - 6 iso' v 40, 4 o S. _ 2M Exhibit E ASSESSMENT AGREEMENT By and between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA and HEARTLAND REALTY INVESTORS , INC. , A MINNESOTA CORPORATION (Anoka County Assessor ' s Certificate Attached ) This document drafted by: O'CONNOR & HANNAN 3800 IDS Center Minneapolis , Minnesota 55402 0 2N THIS AGREEMENT, dated as of this day of 1984 , by and between the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota, a municipal cor- poration and political subdivision organized and existing under the laws of the State of Minnesota ( the "HRA" ) , and Heartland Realty Investors , Inc. , a Minnesota corporation ( the "Developer" ) ; WITNESSETH, that WHEREAS, the HRA and the Developer have entered into a Development Agreement , dated as of , 1984 ( the "Development Agreement" ) , regarding certain real property located in the City of Fridley, Minnesota, including but not limited to the real property legally described in Attachment A hereto; and WHEREAS , the ERA and Developer desire to establish a minimum market value for the Assessed Property ( as herein- after defined) for the calculation of real property taxes , or taxes in lieu thereof pursuant to Minnesota Statutes , Section 272 . 01 , or any successor statute, pursuant to the provisions of Minnesota Statutes , Section 273 . 76 , subdivi- sion 8 : NOW, THEREFORE, the parties to this Agreement , in con- sideration of the promises , covenants and agreements made by each to the other , do hereby agree as follows : 1 . As of January 1 , 1985 , and continuing until the termination of this Agreement , the minimum market value which shall be assessed with respect to the Assessed Prop- erty shall be no less than $2 , 500 , 000 , the intention of this paragraph being that the payable 1986 real estate taxes shall be the first taxes subject to this Assessment Agree- ment . For purposes of this Assessment Agreement , the term Assessed Property means the real property described in Attachment A hereto, together with all additions thereto and subtractions therefrom which are from time to time occasioned by the performance of the Development Agreement by the Developer and the HRA, respectively, including the initial purchase of Parcel A by the Developer , the con- veyance of Parcel A and Parcel C to the HRA by the Devel- oper, and the subsequent conveyance of Parcel B (which is a portion of Parcel A) to the Developer by the HRA, as such Parcels A, B and C are legally described in Exhibits A, B and C, respectively, of the Development Agreement . The term Assessed Property also includes the improvements currently existing, and the improvements to be constructed pursuant to the Development Agreement, on the real property described in Attachment A. 2 O 2 . The minimum market value herein established shall be of no further force and effect after , and this Agreement shall terminate on, December 31 , 1994 , the intention of this paragraph being that the payable 1995 real estate taxes shall be the last taxes subject to this Assessment Agree- ment . 3 . Nothing in this Assessment Agreement shall limit the discretion of the Assessor for Anoka County, Minnesota, to assign a market value to the Assessed Property in excess of $2, 500 , 000 for the taxes payable in 1986 or in any year thereafter or prohibit the Developer from seeking through the exercise of legal or administrative remedies a reduction in such market value for property tax purposes ; provided , however , that the Developer shall not seek a reduction of the market value of the Assessed Property below $2 , 500 , 000 for the taxes payable in 1986 or in any year thereafter so long as this Assessment Agreement shall remain in effect . 4 . Neither the preambles nor the provisions of this Agreement are intended to, nor shall they be construed as , modifying the terms of the Development Agreement between the HRA and the Developer . 5 . This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the parties . THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF FRIDLEY, MINNESOTA By Chairman of the Board of Commissioners By Its Director \HEARTLAND REALTY INVESTORS INC. , A MINNESOTA CORPOP.A- TION By H. William Walter Its President E - 2 2P STATE OF MINNESOTA ) ss COUNTY OF ANOKA ) • The foregoing instrument was acknowledged before me this day of , 1984 , by Lawrence R. Commers and Nasim M. Qureshi , the Chairman of the Board of Commissioners and the Director , respectively, of the Housing and Redevel- opment Authority in and for the City of Fridley, Minnesota . Notary Public E - 4 2Q STATE OF MINNESOTA ) ss COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this day of , 1984 , by H. William Walter , the President of Heartland Realty Investors , Inc. , a Minnesota corporation. Notary Public E - 5 2R ATTACEME T A Legal Description of Development Property The Development Property consists of the real property located in the City of Fridley, Anoka County, Minnesota, legally described as follows: Lot 18, Block 5, Rice Creek Plaza South Addition except the south 120 feet of the east 120 feet thereof. Subject to easements of record. 2 S CERTIFICATION BY COUNTY ASSESSOR The undersigned, being of the opinion that the minimum market values contained in the foregoing Assessment Agree- ment between the Fridley HRA and Heartland Realty Investors , Inc. , appear reasonable, hereby certifies as follows : The undersigned Assessor , being legally responsible for the assessment of the Assessed Property (as defined in the Assessment Agreement ) hereby certifies that the market value assigned to such land and improvements upon January 1 , 1985 , and continuing each year thereafter until the expiration of the Assessment Agreement , shall not be less than $2 , 500 , 000 . Dated this day of , 19_ Assessor for the County of Anoka, Minnesota E - 6 2T STATE OF-MINNESOTA ) ss. COUNTY OF ANOKA ) The foregoing instrument was acknowledged before me this day of , 19 , by , the Assessor for the County of Anoka, Minnesota . Notary Public E - 7 7 SCHEDULED HOUSING & REDEVELOPMENT MEETINGS FOR 1985 All Meetings are at 7:00 p.m. and are on the second Thursday of the month. January 10, 1985 February 14, 1985 March 14, 1985 April 11, 1985 May 9, 1985 June 13, 1985 July 11, 1985 August 8, 1985 September 12, 1985 October 10, 1985 November 14, 1985 December 12, 1985 Please mark your new calanders 1 Notice of Public Hearing on Proposed Development Agreement Notice is hereby given that the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority") , will conduct a public hearing at its meeting to be held in the Fridley City Hall on December 13, 1984 , commencing at 8: 00 p.m. , C.T. , on a proposal that the Authority enter into an agreement with Heartland Realty Investors, Inc. , a Minnescta corporation, as owners of the Holly Shopping Center located at the north- west corner of the intersection of University Avenue and Mississippi Street in the City of Fridley. A copy of the proposed Development Agreement is on file in the offices of the Director of the Authority located in the Fridley City Hall. All persons appearing at the public hearing will be given an opportunity to present their oral or written comments on the proposal that the Authority enter into the Development Agreement mentioned above. By order of the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota. 2 RESOLUTION NO. HRA 20-1984 A RESOLUTION APPROVING AND AUTHORIZING s THE EXECUTION OF A DEVELOPMENT AGREEMENT WITH HEARTLAND REALTY INVESTORS, INC. , RESPECTING THE HOLLY SHOPPING CENTER It is hereby resolved by the Board of Commissioners (the "Board" ) of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota (the "HRA" ) , as follows : 1 . Recitals and Findings. (a) The HRA has heretofore established its Center City Redevelopment District and has adopted a redevelop- ment plan therefor (the "Redevelopment Plan" ) . The objectives of the Center City Redevelopment Plan include the promotion of new development, the revitalization and redevelopment of existing development, and the providing of assistance by the HRA toward the realization of such objectives. (b) The property known as the Holly Shopping Center, located generally on the northwest corner of the inter- section of University Avenue and Mississippi Street is located within the Center City Redevelopment District. (c) The present owners of the Holly Shopping Center, Heartland Realty Investors , Inc. , a Minnesota corporation (the "Developer" ) , and the HRA are mutually interested in upgrading the Holly Shopping Center and providing traffic and greenway improvements in the immediate vicinity there- of. (d) The University Avenue and Mississippi Street intersection is congested and in need of additional right of way to make traffic improvements to allow better flow of traffic, and there is a need for additional right of way on Mississippi Street along the Holly Shopping Center property. (e) The acquisition by the HRA of the above-mentioned right of way would cause the Holly Shopping Center to lose needed parking spaces. An abandoned gas station is situated at the southeast corner of the Holly Shopping Center site, and the HRA, in accordance with the goals of the Redevelopment Plan, would like to improve that property and to bring it into more productive use. 2A • (f) The acquisition of the gas station property would allow the HRA to improve that property, to pro- vide indirect benefit to the adjacent Holly Shopping Center site and to compensate the Developer for the loss of the parking spaces occasioned by the expansion of the right of way of Mississippi Street. (g) Attached to and made a part of this resolution is a proposed Development Agreement between the HRA and the Developer which provides for the making of the public improvements described above, together with improvements to be undertaken and completed by the Developer to the Holly Shopping Center itself. (h) The Board of the HRA hereby finds that the improvements and transactions outlined in the attached Development Agreement would promote the goals of the Redevelopment Plan and are authorized by the HRA' s authority under Minnesota Statutes, Section 462. 41 et seq. 2. Approval of Development Agreement. Having duly fulfilled the requirement for public hearing per Minnesota Statutes, Section 462. 525, the Board hereby approves the Development Agreement substantially in the form attached hereto and hereby authorizes the Chairman of the Board and the Director of the Housing and Redevelopment Authority to execute the same on behalf of the Authority, with additions and modifications as those officers may deem necessary. 3. Authorization to HRA Officers. Subject to the final approval referenced in the foregoing paragraph, upon execution and delivery of the Development Agreement, the officers and employees of the HRA are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the HRA to implement the terms of the Development Agreement. Adopted by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Fridley, Minnesota , this 13th day of December, - 1984.