1b. Heartland America: Private Redevelopment Agreement.CITY OF
SSE
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900 0 FAX (612) 937 -5739
MEMORANDUM
TO: Don Ashworth, City Manager
FROM: Todd Gerhardt, Assistant City Manager
DATE: , September 3, 1997
SUBJ: Consider Approval of a Private Redevelopment Agreement with Chaska Gateway Partners Limited
Partnership (Heartland America)
Attached for the city council's review is a Private Redevelopment Agreement between the City of Chanhassen and
Chaska Gateway Partners Limited Partnership (Heartland America) (see Attachment #1). The city council created
TIF District No. 6 in May, 1997 (see Attachment #2). In conjunction with the creation of this district, the Tax
Increment Plan incorporated the city's current three year incentive program for businesses meeting one of the
following qualifications:
l , Discourage business from moving to another state or municipality;
2. Increase employment in the state;
3. Preserve and enhance the tax base of the state.
Heartland America meets two of the three qualifications. They will be enhancing the tax base by approximately
$178,050 per year; and creating at least 50 new jobs by the spring of 1998. Heartland America is proposing to
construct a 101,600 sq. ft. office /industrial. facility for the distribution of discontinued/overstocked products.
The estimated amount of incentives available total $267,075 based on the city's policy of three years worth of taxes
minus fiscal disparities and school aid contributions (see Attachment #3). The city would make payment back to
Heartland America in the following years based on'the new taxes generated from their facility:
2000 $ 89,025
2001 $ 89,025
2002 $ 89
Total Incentives: $267
RECOMMENDATION
Staff recommends approval of the Private Redevelopment Agreement with Chaska Gateway Partners Limited
Partnership and their request for $267,075 in city assistance.
ATTACHMENTS
1. Private Redevelopment Agreement
2. Location map of District
3. Estimated Taxes /Incentives
gAadmin' \tg \Heartland.doc
TABLE OF CONTENTS
ARTICLE I
Definitions
Section 1.1. Definitions ......... ............................... 2
ARTICLE II
Representations and Warranties
Section 2.1. Representations by the City ............................. 4
Section 2.2. Representations by the Redeveloper ........................ 4
ARTICLE III
Acquisition and Conveyance of Property
Section 3.1. Acquisition of Redevelopment Property ..................... 6
Section 3.2. Taxes and Special Assessments .......................... 6
Section 3.3. Assessment Agreement . ............................... 6
ARTICLE IV
Public Assistance
Section 4.1. Construction of the Minimum Improvements ................. 7
Section 4.2. Form of Public Assistance ............................ 7
ARTICLE V
Tax Increment
Section 5.1. Tax Increment Certification ............................. 8
Section 5.2. Real Property Taxes; Special Assessments ................... 8
Section 5.3. Real Property Assessment .............................. 8
Section 5.4. Wage and Job Covenants ............................... 8
ARTICLE VI
Additional Provisions
Section 6.1.
'
Equal Employment Opportunity ..........................
9
Section 6.2..
Restrictions on Use .... ...............................
9
Section 6.3.
Provisions Not Merged With Deed ........................
9
Section 6.4.
Notices and Demands .. ...............................
9
Section 6.5.
Disclaimer of Relationships .............................
9
Section 6.6.
Covenants Running with the Land .........................
9
Section 6.7.
Modifications ....... ...............................
10
Section 6'.8.
Counterparts ....... ...............................
10
Section 6.9.
'
Termination ........ ...............................
10
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Section 6. 10
SIGNATURES
TESTIMONIALS
SCHEDULE A
SCHEDULE B
SCHEDULE C
SCHEDULE D
Assignment ......... ...............0000...... 10
REDEVELOPMENT PROPERTY LEGAL DESCRIPTION
ASSESSMENT AGREEMENT AND ASSESSOR'S CERTIFICATION
[Blank]
[Blank]
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CONTRACT FOR PRIVATE REDEVELOPMENT
THIS AGREEMENT, made on or as of the day of , 1997, by and
between THE CITY OF CHANHASSEN, a Minnesota municipal corporation (hereinafter referred
to as the "City ") and CHASKA GATEWAY PARTNERS LIMITED PARTNERSHIP, a
Minnesota Limited Partnership (hereinafter referred to as the "Redeveloper "),
WITNESSETH:
WHEREAS, the City has created
"District ") pursuant to Minnesota Statutes
created within the District, Tax Incremen
District ") also pursuant to the Act; and
and established Development
§§ 469.124 through 469.154
Financing District No. 6 -1
District No. 6 (the
(the "Act ") and has
(the "Tax Increment
WHEREAS, the City has further adopted its development district program (the "Program ")
for the District describing the objectives of the Program and the public assistance needed within
the District to carry out the objectives of the Program; and
WHEREAS, there has been presented by the Redeveloper to the City for its consideration
a proposal for the development of a office /industrial facility within the District on property
located within the Tax Increment District; and
WHEREAS, the City has reviewed the Redeveloper's development proposal and has
determined that the development, if completed, would serve to accomplish the objectives of the
Program.
WHEREAS, in order to achieve the objectives of the Program the City has determined
to provide aid and assistance to the Redevelopment Property in the form of special assessment
reduction assistance; and
WHEREAS, the City intends to fund the special assessment reduction assistance by using
tax increments generated from the Redevelopment Property and the improvements to be
constructed thereon; and
WHEREAS, the City believes that the redevelopment of the District pursuant to this
Agreement, and fulfillment generally of this Agreement, are in the vital and best interests of the
City and the health, safety, morals, and welfare of its residents, and in accord with the public
purposes and provisions of the applicable state and local laws and requirements under which the
Program has been undertaken and is being assisted.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto, each of them does hereby covenant and agree with the other as follows:
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ARTICLE I
Definitions
Section 1.1. Definitions In this Agreement, unless a different meaning clearly appears
from the context:
" Act ►► means Minnesota Statu tes , Sections 469.001- 469.154 (formerly Municipal Housing
and Redevelopment A ct , Minnesota Statutes, Sections 462.411- 462.711), as amended.
"Agreement" Agreement, as the same may be from time to time modified,
Agreement means this Ag Y
amended, or supplemented.
"Assessed Market Value" or "Assessed Market Valuation" means the market value of real
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property as
determined b the count assessor of the county in accordance with Minnesota
Statutes, Section 273. 11 ( or as finally adjusted by the assessor, board of equalization,
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commissioner of revenue, or any court).
"Available Tax Increment" means any Tax Increment remitted to the City in the years
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2000
through 2002 inclusive after deducting therefrom the following amounts:
i) payments previously made pursuant to Section 4.2 of this Contract; and
any amounts needed to make payments to a school district pursuant to
Minnesota Statutes § 469.177, subd. 10.
" City " means the City of Chanhassen , a Minnesota municipal corporation and statutory
city g accordin to the laws of the State of Minnesota.
"Closing" means the completion of the transaction contemplated in this Agreement
between the parties hereto.
"Construction Plans" means the plans, specifications, drawings and related documents on
the construction work to be p Y performed b the Redeveloper on the Redevelopment Property which
shall be a t least as detailed as the plans required to be submitted to the building inspector of the
City.
"Limited Revenue Tax Increment Note" or "Note means the limited, special obligation
p
of the City to pay
to Redeveloper, from tax increments generated from the Redevelopment
Property, a n annual dollar amount, as provided in Section 4.2 of this Agreement and the Note
attached as Schedule D.
"Minimum Improvements" m p means the improvements described in the Preliminary Plans
containin g a office /industrial facility of approximately 101,600 square feet.
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"Preliminary Plans" means those plan sheets and other descriptive material which are
identified in the attached Schedule E.
"Redeveloper" means Chaska Gateway Partners Limited Partnership, a Minnesota limited
partnership, or its successors and assigns.
"Redevelopment Property" means the real property, a legal description of which property
is contained on the attached Schedule A.
"Tax Increment" means that portion of the real property taxes paid with respect to the Tax
Increment District which is remitted to the City as tax increment pursuant to the Tax Increment
Act.
"Tax Increment Act" means Minnesota Statutes, Sections 469.174 -.179, as the same may
be amended from time to time.
"Termination Date" means the date when the Assessment Agreement has terminated
according to its terms.
"Tax Official" means any city or county assessor; county auditor; city, county or state
board of equalization, the commissioner of revenue of the state, any state or federal district court,
the tax court of the state, or the State Supreme Court.
"Unavoidable Delays" means delays which are the direct result of acts of God, unforeseen
adverse weather conditions, labor disputes, fire or other casualty to the Minimum Improvements,
litigation commenced by third parties which, by injunction or other similar judicial action causes
delays, acts of any federal, state or local governmental unit (other than the, City in enforcing its
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rights under this Agreement), City defaults as to the Redeveloper's delays, Redeveloper defaults
as to the City's delays, or other matters which are not within the control of the Redeveloper as
to the Redeveloper's delays or not within the control of the City as to the City's delays.
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ARTICLE II
Representations and Warranties
Section 2.1. Representations by the City The City makes the following representations
as the basis for the undertaking on its part herein contained:
(a) Subject to matters described in Section 5.5 of this Agreement, the City has the
right, power and authority to execute, deliver and perform its obligations according to this
Agreement and all other documents to be executed by the City pursuant hereto. The City assures
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the Redeveloper that the individuals who execute this Agreement and all other documents
executed by Y the City or on behalf of the City are duly authorized to sign the same on behalf of
the City and to bind the City thereto.
(b) Subject to satisfaction of the terms and conditions of this Agreement, the City will
convey the Redevelopment Property to the Redeveloper for development in accordance with the
terms of this Agreement.
(c) Neither the City, nor, to the best of the City's knowledge, any entity or person has,
at any time (i)"released" or actively or passively consented to the "release" or "threatened
release" . of any Hazardous Substance (as defined below) on or under or that would affect the
environmental condition of the Redevelopment Property; or (ii) taken any action in "response"
to a "release" in connection with the Redevelopment Property; or (iii) otherwise engaged in any
activity or omitted to take any action which could subject the City or Redeveloper to claims for
intentional or negligent torts, strict or absolute liability, either pursuant to statute or common law,
in connection with Hazardous Substances (as defined below) located in or on the Redevelopment
Property, including the generating,, transporting, treating, storage, or manufacture of any
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Hazardous Substance (as defined below). The terms set within quotation marks above shall have
the meaning given to them in the Comprehensive Environmental. Response and Liability Act, 42
U.S.C. § 9601 et seci., as amended ( "CERCLA ") and any state environmental laws. "Hazardous
Substances" means hazardous waste, toxic substances, formaldehyde, urea, polychlorinated,
bi hen is asbestos, petroleum,, natural gas, synthetic gas usable as fuel or mixtures thereof, any,
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materials related to any g of the foregoing, , and substances defined as "hazardous substances ", "toxic
substances ", "hazardous waste ", "pollutant ", or "contaminant" in CERCLA 42 U.S.C. § 9601 et
seq., the Resource Conservation and Recovery Act as amended, the Hazardous Materials
Transportation Act, 49 U.S.C. § 1801 et seci., the Clean Water Act, 33 U.S.C. § 1251 et seq. any
state laws regarding environmental matters, or any regulations promulgated pursuant to any of
the foregoing statutes.
Section 2.2. Representations by the Redeveloper The Redeveloper represents that:
(a) The Redeveloper has the right, power and authority to execute, deliver and perform
its obligations according to this Agreement.
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CH135 -36
(b) If Redeveloper is successful in obtaining any variances required by the City, and
if the Redeveloper constructs the Minimum Improvements on the Redevelopment Property, it will
do so in accordance with the terms of this Agreement, and all local, state and federal laws and
zoning, building code and public health laws and regulations.
(c) If constructed, the Minimum Improvements will have a market value of not less
than $3,000,000 inclusive of the value of the Redevelopment Property but exclusive of the value
of any improvements currently located on the Redevelopment Property.
(d) As of this date, the Redeveloper has received no notice or communication from
any local, state or federal official that the activities of the Redeveloper or the City in the Project
Area may be or will be in violation of any environmental law or regulation. The Redeveloper
is aware of no facts the existence of which would cause it to be in violation of any local, state
or federal environmental law, regulation or review procedure. In the event that the City is
required to take any action to obtain any necessary permits or approvals with respect to the
Redevelopment Property under any local, state or federal environmental law or regulation, the
Redeveloper will cooperate with the City in connection with such action.
(e) If the Redeveloper constructs the Minimum Improvements, it will use its best
efforts to do so in accordance with all applicable local, state or federal energy conservation laws
or regulations.
(f) Neither the execution and delivery of this Agreement, the consummation of the
transactions contemplated hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of,
the terms, conditions or provisions of any restriction or any evidences of indebtedness, agreement
or instrument of any evidences of indebtedness, agreement or instrument of whatever nature to
which the Redeveloper is now a party or by which it is bound, or constitutes a default under any
of the foregoing.
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ARTICLE III
Acquisition and Conveyance of Property
Section 3.1. Acquisition of Redevelopment Property The Redeveloper represents that
it has as of the date of this Agreement obtained title to or options to acquire title to the
Redevelopment Property.
Section 3.2. Taxes and Special Assessments Payment of real estate taxes and
installments of special assessments shall be responsibility of Redeveloper, but shall be reduced
or eliminated in accordance with Section 4.2(a).
Section 3.3. Assessment Agreement At Closing, and as a precondition to the City's
obligations, the parties shall execute an Assessment Agreement and Assessor's Certification in
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substantially the form of the attached Schedule B. At the time of execution, the instrument must
have been executed by the county assessor. Subsequent to execution by the parties, the
instrument shall be recorded as provided for in the instrument.
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CH135 -36
ARTICLE IV
Public Assistance
Section 4.1. Construction of the Minimum Improvements Subject to the terms and
conditions of this Agreement, the Redeveloper agrees to purchase the Redevelopment Property
and if it constructs the Minimum Improvements on the Redevelopment Property, it will do so
substantially in accordance with the Construction Plans. Should the Redeveloper construct the
Minimum Improvements, it agrees to maintain, preserve and keep them in good repair and
condition, subject to reasonable wear and tear and casualty excepted. Notwithstanding anything
to the contrary set forth in this Agreement, the Redeveloper has no obligation to construct the
Minimum Improvements. The Construction Plans must reasonably conform to the Preliminary
Plans unless such nonconformity is approved by the City. The City agrees that it will promptly
consider any proposed amendment to the Construction Plans, will not unreasonably withhold its
approval of such proposed amendments and will approve the same if the amended plans: i) do
not indicate a reduction in the market value of the improvements; and ii) in the reasonable
judgment of the City, such amendment is in conformity with the applicable land use regulations
of the City.
Section 4.2. Form of Public Assistance In order to facilitate the financial feasibility of
the redevelopment of the Redevelopment Property and in consideration for the Redeveloper's
fulfillment of its covenants and obligations under this Agreement, the City will provide to the
Redeveloper public assistance in the form of payment of special assessments from the Available
Tax Increments. The public assistance will be payable by the City only as indicated below.
C,. 7,
(a) Special Assessment Write -Off Subject to the provisions of thi greement, the
City agrees to provide a write -off of special assessments to be essed against the
Redevelopment Property for public improvements in the amount of $ as follows: In each
year commencing with the year 2000 and ending in the year 2002, the City shall pay all of the
Available Tax Increment to the Redeveloper u to a maximum annual payment of
p p a py $ � p
year up to the aggregate total of $3 vailable Tax Increment for any such years in excess
of $ , � er year will be available to o any deficiency of Available Tax Increment in an
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other such years but only up to the total aggregate o
07 J 07,5
For the purposes of this section, costs which are eligible for Special Assessment Write -Off
treatment include: i) the actual assessable cost of public improvements constructed by the City
and benefiting the Redevelopment Property and ii) the amount (as approved by the City) of
improvements constructed or funded by the Redeveloper which benefit the Redevelopment
Property which would have been considered assessable public improvements if constructed by the
City.
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CH135 -36 7
ARTICLE V
Tax Increment
Section 5.1. Tax Increment Certification. The City has established the Tax Increment
District p ursuant to the Tax Increment Act.
Section 5. Property 2. Real Pro ert Assessment The Redeveloper shall not cause the
Redevelopment Property to be removed from the public tax rolls or to become exempt from
assessment for g eneral real estate taxes by reason of any conveyance, lease, abatement or other
action until the Termination Date.
n 5.4. Wa e and Job Covenants (a) B no later than two years after the first date
Sectio g Y
on which the Redeveloper receives any payment pursuant to Section 4.2, there shall be employed
on the Redevelopment Property at least 50 employees and the gross annual wages for all such
employees to ees shall be no less than $1,000,000. Until it is established that Redeveloper or tenants
occupying in the Redevelopment Property have attained those goals, the Redeveloper shall annually
submit to the City a written report each year after completion of the Minimum Improvements
describing em wages to and es in sufficient detail to enable the City to determine compliance
employment g
with this Section.
(b) If the er
e Redevelo fails to meet the job and wage levels described on paragraph
(a) at least once year nce during the two period following the first payment of tax increment, in
accordance with Section 4.2 the Redeveloper shall repay the City, upon written demand from the
City, any payments made to the Redeveloper under Section 4.2. Nothing in this Section shall be
construed to limit the City's other remedies hereunder. Nothing in this Agreement shall be
deemed imposing an
med as im osin obligation on the Redeveloper to achieve the employment and wage
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requirements contained in Paragraph (5.4(c) more than one time.
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CH135 -36
ARTICLE VI
Additional Provisions
Section 6.1. Equal Employment Opportunity The Redeveloper, for itself and its
successors and assigns, agrees that in the event the Minimum Improvements are constructed as
provided for in the Agreement, it will comply with all applicable federal, state and local equal
employment and nondiscrimination laws and regulations.
Section 6.2. Restrictions on Use The Redeveloper agrees for itself, and its successors
and assigns, and every successor in interest to the Redevelopment Property, or any part thereof,
that the Redeveloper, and such successors and assigns, shall devote the Redevelopment Property
to, and only to and in accordance with, the land use regulations of the City of Chanhassen in
effect on the date of the issuance of a building permit for construction of Minimum
Improvements.
Section 6.3. Provisions Not Merged With Deed None of the provisions of this
Agreement are intended to or shall be merged by reason of any deed transferring any interest in
the Redevelopment Property.
Section 6.4. Notices and Demands Except as otherwise expressly provided in this
Agreement, a notice, demand, or other communication under the Agreement or the deed by either
party to the other shall be sufficiently given or delivered only if it is dispatched by registered or
certified mail, postage prepaid, return receipt requested, or delivered personally; and
(a) in the case of the Redeveloper, is addressed to or delivered to the Redeveloper at
3 610 South Highway 101, Deephaven, Minnesota 55391, Attn: Thomas Kordonowy; and
(b) in. the case of the City, is addressed to or delivered personally to the City at 690
Coulter Drive, Box 147, Chanhassen, Minnesota 55317, or at such other address with respect to
either such party as that party may, from time to time, designate in writing and forward to the
other as provided in this Section.
Section 6.5. Disclaimer of Relationships The Redeveloper acknowledges that nothing
contained in this Agreement nor any act by the City or the Redeveloper shall be deemed or
construed by the Redeveloper or by any third person to create any relationship of third -party
beneficiary, principal and agent, limited or general partner, or joint venture between the City and
the Redeveloper.
Section 6.6. Covenants Running with the Land The terms and provisions of this
Agreement shall be deemed to be covenants running with the Redevelopment Property and shall
be binding upon any successors or assigns of the Redeveloper and any future owners or
encumbrances of the Redevelopment Property; but shall terminate and shall no longer affect the
Redevelopment Property from and after the Termination Date;
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CH135 -36 9
Section 6.7. Modifications This Agreement may be modified solely through written
amendments hereto executed by the Redeveloper and the City.
Section 6.8. Counterparts This Agreement may be executed in any number of
counterparts, each of which shall constitute one and the same instrument.
Section 6.9. Termination. The Redeveloper and the Redevelopment Property shall be
released from this Agreement and the Redeveloper's obligations hereunder on the Termination
Date and the City shall execute and deliver to the Redeveloper a release, in recordable form,
evidencing such termination and release.
Section 6.10. Assi nment. The Redeveloper may at any time that it is not in default
under this
Agreement assign its rights and obligations hereunder to another entity which is
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acceptable to the City in its reasonable discretion. The assignment must be evidenced by an
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instrument in recordable form and acceptable to the City whereby the Redeveloper assigns and
the accepts assignee all of the Redeveloper's rights and obligations hereunder. The City agrees
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that Redeveloper may assign its rights and obligations under this Agreement to a limited
partnership in which the shareholders of Steiner Development, Inc., hold a 51 % or greater
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partnership interest and serve as a general partner of the partnership. Upon such an assignment,
and upon the further written undertaking of such assignee to be bound hereunder, Redeveloper
shall be released from its obligations under this Agreement.
IN WITNESS WHEREOF the Cit y has caused this Agreement to be executed in its
corporate name by its duly authorized officers and sealed with its corporate seal; and the
Redeveloper has caused this Agreement to be. executed in its corporate name as of the date first
above written.
THE CITY OF CHANHASSEN, MINNESOTA
(SEAL)
By
Its Mayor
And
Its City Manager
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CH135 -36
STATE OF MINNESOTA )
ss.
COUNTY OF CARVER )
On this day of , 1997, before me, a Notary Public within and for said
county, appeared and to me personally known, who
being by me duly sworn, did say that they are respectively the Mayor and City Manager of the
City of Chanhassen, Minnesota, a municipal corporation under the laws of the State of Minnesota,
on behalf of the corporation.
Notary Public
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CH135 -36 11
REDEVELOPER:
CHASKA GATEWAY PARTNERS LIMITED
PARTNERSHIP
By Steiner Development, Inc.
Its General Partner
By
Its
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
g g
1997, by
the of Steiner
Development, Inc. , a Minnesota corporation and the general partner of Chaska Gateway Partners
Limited
Partnership, a Minnesota limited partnership, on behalf of the limited partnership.
Notary Public
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CH135 -36
SCHEDULE A
to
CONTRACT FOR PRIVATE REDEVELOPMENT
REDEVELOPMENT PROPERTY LEGAL DESCRIPTION:
Lot 3, Block 1, Arboretum Business Park, Carver County Minnesota
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CH135 -36 A-1
SCHEDULE B
ASSESSMENT AGREEMENT
and
ASSESSOR'S CERTIFICATION
By and among
THE CITY OF CHANHASSEN
and
CHASKA GATEWAY PARTNERS LIMITED PARTNERSHIP
This Document was drafted by:
KENNEDY & GRAVEN, CHARTERED
470 Pillsbury Center
Minneapolis, Minnesota 55402
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CH135 -36
THIS AGREEMENT, dated as of this day of , 1997, by and between the
CITY OF CHANHAS SEN, a Minnesota municipal corporation (the "City ") and CHASKA
GATEWAY PARTNERS LIMITED PARTNERSHIP, a Minnesota limited partnership, (the
"Redeveloper ").
WITNESSETH, that
WHEREAS, on or before the date hereof the City and Redeveloper have entered into a
Contract for Private Redevelopment (the "Contract ") regarding certain real property located in the
County of Carver, pursuant to which the City is to acquire certain property, hereinafter referred
to as the Redevelopment Property and legally described in Attachment A hereto; and
WHEREAS, it is contemplated that pursuant to said Contract the Redeveloper will
construct a 101,600 square foot office /industrial facility upon the Redevelopment Property; and
WHEREAS, the City and Redeveloper desire to establish a minimum market value for
said land and the improvements to be constructed thereon, pursuant to Minnesota Statutes Section
469.177, Subdivision 8; and
WHEREAS, the City and the County Assessor for Carver County, have reviewed the
preliminary plans and specifications for the improvements which it is contemplated will be
erected;
NOW, THEREFORE, the parties to this Agreement, in consideration of the promises,
covenants and agreements made by each to the other, do hereby agree as follows:
1. . The minimum market value which shall be assessed for the land described in
Attachment A , with the Minimum Improvements and other improvements constructed thereon
shall upon substantial completion be not less than $3,000,000. The parties to this Agreement
expect that the construction of the above - referenced improvements will be entirely completed on
or before December 31, 1997.
2. The minimum market value herein established remains in full force and effect until
the earlier of: i) December 31, 2008; or ii) the date on which the City is .no longer entitled to
receive tax increment with respect to the Tax Increment District for the Redevelopment Area, at
which time this Agreement shall terminate. City shall provide Redeveloper with a release in
recordable form evidencing termination of this Agreement.
3. This Agreement shall be promptly recorded by the Redeveloper with a copy of
Minnesota Statutes Section 469.177, Subdivision 8, set forth in Attachment B hereto. The
Redeveloper shall pay all costs of recording.
4. Neither the preambles nor provisions of this Agreement are intended to, nor shall
they be construed as, modifying the terms of the Contract between the City and the Redeveloper.
No provision of this Agreement shall be interpreted to limit or restrict the Redeveloper from
appealing valuations of the Redevelopment Property for real estate purposes which exceed
$3
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CH135 -36 B-1
5. This Agreemen t shall inure to the benefit of and be binding upon the successors
and assigns of the parties.
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CH135 -36
CITY OF CHANHASSEN
STATE OF MINNESOTA )
ss
COUNTY OF CARVER )
By
Its Mayor
By
Its City Manager
CHASKA GATEWAY PARTNERS LIMITED
PARTNERSHIP
By Steiner Development, Inc.
Its General Partner
Its
The foregoing instrument was acknowledged before me this day of ,
1997, by and the Mayor and City Manager,
respectively, of the City of Chanhassen, a Minnesota municipal corporation, on behalf of the
corporation.
STATE OF MINNESOTA )
SS.
COUNTY OF )
Notary Public
The foregoing instrument was acknowledged before me this day of , 1997,
by the of
Steiner Development, Inc., a Minnesota corporation and the general partner of Chaska Gateway
Partners Limited Partnership, a Minnesota limited partnership, on behalf of the limited
partnership.
Notary Public
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CH135 -36 B -3
CERTIFICATION BY COUNTY ASSESSOR
The undersigned, having reviewed the plans and specifications for the improvements to
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be constructed and the minimum market value assigned to the land upon which the improvements
are g p r to be constructed and being of the opinion that the minimum market value contained in the
foregoing Agreement appears reasonable, hereby certifies as follows: The undersigned Assessor,
g g g pp
bein g legally ally responsible for the assessment of the above described property, hereby certifies that
the minimum market value assigned to such land and improvements commencing on December
31 1997 to be calculated on January 2, 1998) shall not be less than $3,000,000 until termination
of this Agreement.
Assessor for Carver County, Minnesota
STATE OF MINNESOTA )
ss
COUNTY OF CARVER )
The g
fore g oin instrument was acknowledged before me this day of
b , the County Assessor for Carver County, Minnesota.
Notary Public
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CH135 -36
ATTACHMENT A
Legal Description of Land
REDEVELOPMENT PROPERTY:
Lot 3, Block 1, Arboretum Business Park, Carver County, Minnesota
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CH135 -36 B-5
ATTACHMENT B
Section 469.177 Subd. 8. Assessment agreements An authority may, upon entering into
a or development redevelopment agreement pursuant to section 469.176, subdivision 5, enter into
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a written assessment agreement in recordable form with the developer or redeveloper of property
within the tax increment financing district which establishes a minimum market value of the land
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nd completed improvements to be constructed thereon until a specified termination date, which
date shall be not later than the date upon which tax increment will no longer be remitted to the
authority pursuant to section 469.176, subdivision 1. The assessment agreement shall be
presented to the count assessor, or city assessor having the powers of the county assessor, of the
jurisdiction in which the tax increment financing district is located. The assessor shall review
the p lans and specifications for the improvements to be constructed, review the market value
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assigned to the land upon which the improvements are to be constructed and, so long
as the minimum market value contained in the assessment agreement appears, in the judgment
of the assesso r , to be a reasonable estimate, shall execute the following certification upon such
agreement:
The undersigned assessor, being legally responsible for the assessment of the
above - described p roperty upon completion of the improvements to be constructed
thereon hereb y certifies that the market value assigned to such land and
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imp rovements upon completion shall not be less than $ .
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le of the land to be developed Upon transfer of tit or redeveloped from the authority to the p
developer or redeveloper, such assessment agreement, together with a copy of this subdivision,
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11 be filed for record and recorded in the office of the county recorder or filed in the office
shall
of the registrar of titles of the county where the real estate or any part thereof is situated. Upon
completion i of the improvements b the developer or redeveloper, the assessor shall value the
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property pursuant to section 273.11, except that the market value assigned thereto shall not be
less than the minimum market value contained in the assessment agreement. Nothing herein shall
limit the discretion of the assessor to assign a market value to the property in excess of the
minimum market value contained in the assessment agreement nor prohibit the developer or
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redeveloper from seeking,
through the exercise of administrative and legal remedies, a reduction
in market value for ro ert tax purposes; provided, however, that the developer or redeveloper
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shall not seek, nor shall the city assessor the county assessor, the county auditor, any board of
review any q board of equalization, the commissioner of revenue or any court of this state grant
a reduction of the market value below the minimum market value contained in the assessment
agreement du g g
during the term of the agreement filed of record regardless of actual market values
which may result from incomplete construction of improvements, destruction or diminution by
an cause insured or uninsured, except in the case of acquisition or reacquisition of the property
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by a p Y . public entity., or filing of an assessment agreement complying with the terms of
Recording
this subdivision shall constitute notice of the agreement to any subsequent purchaser or
encumbrancer o f the land or an y p art thereof, whether voluntary or involuntary, and shall be
binding upon them.
JBD125278 B -6
CH135 -36
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July, 1997
Steiner Development
Heartland America
Lot 1, Block 3, Gateway Addition
101,600 sq. ft. office /industrial
Estimated Taxes for 1998
Carver County $3,000,000
- 100,000
$2,900,000
Min. Market Value
4.0%
116,000
+2 (2.7% of 1 100,000 of market value
118,700
* 150% (Est. tax capacity %)
$
178 050 Total estimated taxes
1
178 Yearly taxes
89. Fiscal disparities /school aid
89,025 Total Est. Incentives Per Year
if Pro' completed by January 1, 1995 Project is com
Proposed Payment Schedule � p
2000 $895025
2001 $895025
2002 $895025
* * $267,075 Estimated Total Incentives
• economic development tax increment financing district,
* This property is located within an econo p
into fiscal disparities and school contributions.
thus, you must pay p
* * To be used only for special assessments.