7. Private redev agreement with Ted Korzenowski II C CITYOF ,7
1 if, ' ,..' CHANHASSEN
' 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
le', (612) 937-1900 • FAX (612) 937-5739
MEMORANDUM
ITO: Housing and Redevelopment Authority
IFROM: Todd Gerhardt, Assistant Executive Director
DATE: September 14, 1990
I SUBJ: Consider Approval of a Private Redevelopment Agreement
with Thaddeus E. Korzenowski, Owner, Prairie House
Restaurant
II Attached for the HRA's
consideration is a Private Redevelopment
I Agreement between the HRA and Thaddeus Korzenowski. The Prairie
House Restaurant is located on Lot 2, Block 1, Zamor Addition (see
Attachment #1) .
I The attached contract is very similar to the contract we entered
into with PMT, Country Hospitality Suites, etc. The Prairie House
Restaurant is requesting special assessment assistance to write
II down $9,401.90 worth of public improvements that were assessed
against their property as part of the Phase II downtown
improvements.
1 Presently the HRA/Redevelopment District is capturing $17,265. 00
per year in taxes from the Prairie House Restaurant. In this case,
the HRA could provide a total write down of special assessments
Iwith less than one years worth of taxes.
One Years Worth of Taxes $17,265.00
II Total Special Assessment $ 9,401.90
Remaining Increment $ 7,863.10
RECOMMENDATION
IIStaff would recommend approval of the Private Redevelopment
Agreement with the Prairie House Restaurant and their request for
1 $9,401.90 in special assessment assistance.
ATTACHMENTS
II 1. Location map.
2. Private Redevelopment Contract
II
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1 CONTRACT
' FOR
PRIVATE REDEVELOPMENT
1 By and Between
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF CHANHASSEN,
and
THADDEUS E. KORZENOWSKI
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CONTRACT FOR PRIVATE REDEVELOPMENT I
THIS AGREEMENT, made on or as of September 11, 1990, by and
between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY
OF CHANHASSEN, a public body corporate and politic (hereinafter
referred to as the "Authority") , established pursuant to Laws of
Minnesota 1947, Chapter 487, as amended, being Minnesota Statutes,
Chapter 469 (hereinafter referred to as the "Act") , and having its
principal office at 690 Coulter Drive, Chanhassen, Minnesota and
THADDEUS E. KORZENOWSKI, an individual residing in Hennepin County,
Minnesota (hereinafter referred to as the ("Redeveloper") , having
its principal office at 5315 Third Avenue South, Minneapolis,
Minnesota 55419. 1
WITNESSETH:
WHEREAS, the Authority was created pursuant to law and was
authorized to transact business and exercise its powers by a
resolution of the Common Council of the City adopted on March 25,
1974 ; and 1
WHEREAS, in furtherance of the objectives of the Act, the
Authority has undertaken a program for the clearance and
reconstruction or rehabilitation of blighted, deteriorated,
deteriorating, vacant, unused, underused or inappropriately used
areas of the City, and in this connection is engaged in carrying
out a redevelopment project known as the Chanhassen Downtown
Redevelopment Project (hereinafter referred to as the "Project") in
an area (hereinafter referred to as the "Project Area") located in
the City; and I
WHEREAS, as of the date of this Agreement there has been
prepared and approved by the Authority and the City Council of the
City pursuant to the Act a redevelopment plan for the Project,
dated April, 1990 (which amendment is hereinafter referred to as
"Modification No. 10" and which plan, as amended, and as it may
hereafter be further amended, is hereinafter referred to as the
"Redevelopment Plan") ; and
WHEREAS, a major objective of the Redevelopment Plan is to
stimulate and revitalize the City's downtown commercial area into
a strong, community level, retail center by rehabilitation and
redevelopment of certain business property; and
WHEREAS, the Redeveloper has submitted and the Authority has
approved and accepted plans for the development of certain areas
located within the Project Area; and I
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WHEREAS, the Authority and the Redeveloper desire to enter
into this Agreement in order to set forth the rights and
responsibilities of each with respect to the development proposed
by the Redeveloper within the Project Area; and
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WHEREAS, the Authority believes that the redevelopment of the
Project Area pursuant to this Agreement, and fulfillment generally
of this Agreement, are in the vital and best interests of the City
1 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 Project 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
1 covenant and agree with the other as follows:
ARTICLE I
Definitions
Section 1. 1 Definitions. In this Agreement, unless a
' different meaning clearly appears from the context:
"Act" means the Economic Development Act, Minnesota Statutes,
Chapter 469, as amended.
"Agreement" means this Agreement, as the same may be from
time-to-time modified, amended, or supplemented.
' "Authority" means the Housing and Redevelopment Authority in
and for the City of Chanhassen.
"Certificate of Compliance" means the certification, in the
form of the certificate contained in Exhibit C attached to and made
' a part of this Agreement, provided to the Redeveloper pursuant to
Section 3 .4 of this Agreement.
"City" means the City of Chanhassen.
"Completion of Construction" means the completion of
construction of the Minimum Improvements except for tenant finish
' work.
"Construction Plans" means the plans, specifications, drawings
and related documents on the construction work to be performed by
' the Redeveloper on the Redevelopment Property which (a) shall be as
detailed as the plans, specifications, drawings and related
documents which are submitted to the building inspector of the
City, and (b) shall include at least the following: (1) site plan;
(2) foundation plan; (3) basement plans; (4) floor plan for each
floor; (5) cross sections of each (length and width) ; (6)
elevations (all sides) ; and (7) landscape plan.
"County" means the County of Carver.
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"Development" means the Minimum Improvements to be constructed
on the Redevelopment Property all in accordance with the provisions
of this Agreement.
"Development" means the Minimum Improvements to be constructed 1
on the Redevelopment Property all in accordance with the provisions
of this Agreement.
"Development Plans" means the drawings, plan• sheets and
descriptive narrative contained in Exhibit B.
"Event of Default" means an action by the Redeveloper listed I
in Article VII of this Agreement.
"Minimum Improvements" means the improvements to be
constructed by the Redeveloper on Parcel _ 1 of the Redevelopment
Property, and which, upon completion, will have a market value of
not less than $436.700.00 as determined by the County Assessor. I
"Minnesota Environmental Policy Act" means the statutes
located at Minnesota Statutes, Sections 116D.01 et seq. , as
amended.
"Minnesota Environmental Rights Act" means the statutes
located at Minnesota Statutes, Sections 116B.01 et seq. , as
amended.
"National Environmental Policy Act: means the federal law I
located at 42 U.S.C. §331 et seq. , as amended.
"Project" means the Chanhassen Downtown Redevelopment Project.
"Project Area" means the real property located within the
boundaries of the Project.
"Project Improvements" means the improvements to be
constructed by the City to benefit and serve the Minimum
Improvements in accordance with the provisions of Article V of this
Agreement.
"Redeveloper" means Thaddeus E. Korzenowski, an individual
residing in Hennepin County, Minnesota.
"Redevelopment Property" means the real property described in
Exhibit A of this Agreement. I
"Redevelopment Plan" means the Chanhassen Downtown
Redevelopment Project Plan, as amended as of the date of this
Agreement.
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"Special Assessment" means, for the purposes of Section 3.5 of
this Agreement, the special assessments levied against the
Redevelopment Property by the City to finance the cost of the
' public improvements constructed as part of City Project 86-11B,and
shall also include all special assessments pending or levied
against the Redevelopment Property.
"State" means the State of Minnesota.
"Tax Increment" means that portion of the real property taxes
which is paid with respect to the Redevelopment Property and which
is remitted to the Authority as tax increment pursuant to the Tax
Increment Act, after reduction (if any) of fiscal disparities
contributions which are mandated by state law to be made with
respect to any parcel.
"Tax Increment Act" means Minnesota Statues, Sections 469. 174
through 469.179, of the Economic Development Act.
"Tax Official" means any City or County Assessor; County
II Auditor; City, County or State Board of Equalization, the
Commissioner of Revenue of the State, or 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 strikes, other labor troubles, fire or other casualty to the
11 Minimum Improvements, litigation commenced by third parties which,
by injunction or other similar judicial action, directly results in
delays, or acts of any federal, state or local governmental unit or
any other cause beyond the control of Redeveloper which directly
results in delays.
Section 1.2. Exhibits - The following exhibits are attached
11 to and made a part of this Agreement.
Exhibit A - Redevelopment Property Description
Exhibit B - Development Plans
Exhibit C - Certificate of Completion
Exhibit D - Special Assessment Schedule
' Section 1.3. Rules of Interpretation
(a) This Agreement shall be interpreted in accordance with
' and governed by the laws of the State of Minnesota;
(b) The words "herein" and "hereof" and words of similar
import, without reference to any particular section or
subdivision refer to this Agreement as a whole rather
than any particular section or subdivision hereof;
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• (c) References to any particular section or subdivision
hereof are to be section or subdivision of this Agreement
as originally executed; and
(d) Any titles of the several parts, articles and sections of
this Agreement are inserted for convenience and reference
only and shall be disregarded in construing or
interpreting any of its provisions. I
ARTICLE II
Representations and Warranties
Section 2.1 Representations and Warranties by the Authority. 1
The Authority makes the following representations as the basis for
the undertaking on its part herein contained:
(a) The Authority is a housing and redevelopment authority j
duly organized and existing under the laws of the State.
Under the provisions of the Act, the Authority has the
power to enter into this Agreement and carry out its
obligations hereunder.
•
(b) The Project is a "redevelopment project" within the
meaning of the Act and was created, adopted and approved
in accordance with the terms of the Act.
(c) The Project is a "tax increment district", which operates I
under and in accordance with the Tax Increment Act.
(d) Subject to the provisions of this Agreement, the
Authority proposes to provide, from the tax increment
generated by construction of the Minimum Improvements,
monies to be used to assist Redeveloper in the payment of
the Special Assessments.
(e) The activities of the Authority are undertaken for the
purpose of removing, preventing or reducing blight,
blighting factors, or the causes of blight, and for the
purposes of eliminating or preventing the development or
spread of deteriorated or deteriorating areas. '
Section 2.2. Representations and Warranties by the
Redeveloper. The Redeveloper represents and warrants that: I
(a) The Redeveloper is an individual residing in Hennepin
County, Minnesota, has power to enter into this
Agreement.
(b) The Redeveloper is the owner of the Redevelopment
Property; and will use its best efforts to construct the
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Minimum Improvements in accordance with all local, state
or federal energy-conservation laws or regulations.
(c) The Redeveloper will use its best efforts to obtain, in
a timely manner, all required permits, licenses and
approvals, and will meet, in a timely manner, all
requirements of all applicable local, state and federal
' laws and regulations which must be obtained or met before
the Minimum Improvements may be lawfully constructed.
1 (d) 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 or any restriction or 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.
(e) There are no individuals or entities having an interest
or status with respect to the Redevelopment Property
which would entitle such individuals or entities to any
' relocation benefits or assistance as a result of the
performance by the Authority of its obligations
hereunder.
11 ARTICLE III
Construction of Minimum Improvements and Public Improvements
Section 3.1 Construction of Minimum Improvements. The
Redeveloper agrees that it will construct the Minimum Improvements.
Redeveloper further agrees that it will operate and maintain such
Improvements all in accordance with the approved Construction Plans
and this Agreement. Nothing herein shall relieve the Redeveloper
' from its obligation to prepare, and construct in accordance with,
such additional construction plans as may be required under the
City's normal construction permitting process.
Section 3.2 Construction Plans.
(a) Submittal. Not later than October 1, 1990, the
Redeveloper shall submit Construction Plans to the Authority;
(b) Approval. The Construction Plans shall provide for the
construction of the Minimum Improvements and shall be in conformity
with the Redevelopment Plan, the Development Plans, this. Agreement,
and all applicable state and local laws and regulations. The
Authority shall approve the Construction Plans in writing if, in
the reasonable discretion of the Authority: (i) the Construction
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Plans conform to the terms and conditions of this Agreement; (ii)
the Construction Plans conform to the terms and conditions of the
Redevelopment Plan; (iii) the Construction Plans conform to all
applicable federal, state and local laws, ordinances, rules and 11 regulations; (iv) the Construction Plans are adequate to provide
for the construction of the Minimum Improvements; and (v) the
Construction Plans demonstrate a building design, local exterior
treatment, landscaping and other site amenities which in the
opinion of the Authority are harmonious with other development in
the District and contribute to the appearance of the area and
describe a facility which will, upon completion, have a market
value of not less. than $ 436,700.00. Such Construction Plans
shall, in any event, be deemed approved unless rejected in writing
by the Authority, in whole or in part, within the time period
described in Section 3.6. Such rejection shall set forth in detail
the reasons therefor. If the Authority rejects the Construction
Plans in whole or in part, the Redeveloper may submit new or
corrected Construction Plans within thirty (30) days after written
notification to the Redeveloper of the rejection. The provisions
of this Section relating to approval, rejection and resubmission of
corrected Construction Plans shall continue to apply until the
Construction Plans have been approved by the Authority or until
this Agreement has been terminated pursuant to Article VIII. The
Authority's approval shall not be unreasonably withheld. Said
approval shall constitute a conclusive determination that the
Construction Plans (and the Minimum Improvements, if constructed in
accordance with said plans) comply with the Authority's
satisfaction with the provisions of this Agreement relating
thereto.
(c) Changes. If the Redeveloper desires to make any
substantial change in the Construction Plans after their approval
by the Authority, the Redeveloper shall submit the proposed change
to the Authority for its approval. If the Construction Plans, as
modified by the proposed change, conform to the requirements of
this Section 3.2 of this Agreement with respect to such previously
approved Construction Plans, the Authority shall approve the
proposed change and notify the Redeveloper in writing of its
approval. Such change in the Preliminary Plans for Construction
Plans shall, in any event, be deemed approved by the Authority
unless rejected, in whole or in part, by written notice by the
Authority to the Redeveloper, setting forth in detail the reasons
therefor within the time period described in Section 3.17;
provided, however, that the period for the review of such proposed
changes shall not commence until the Executive Director has
acknowledged, in writing, the receipt of such proposed changes.
Section 3.3 Commencement and Completion of Construction.
Subject to Unavoidable Delays, the Redeveloper shall commence
construction of the Minimum Improvements within ninety (90) days
after the execution of this Agreement, or on such other date as the
parties shall mutually agree. Subject to Unavoidable Delays, the
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II Redeveloper shall complete the construction of the Minimum
Improvements within twelve (12) months from the date of
commencement of the construction. All work with respect to the
' Minimum Improvements to be constructed or provided by the
Redeveloper on the Redevelopment Property shall be in conformity
with the Construction Plans as submitted by the Redeveloper and
approved by the Authority.
1 Section 3 .4 Certificate of Completion. (a) Promptly after
completion of the Minimum Improvements in accordance with those
I provisions of the Agreement relating solely to the obligations of
the Redeveloper to construct the Minimum Improvements, the
Authority will furnish the Redeveloper with an appropriate
II instrument so certifying. Such certification by the Authority
shall be (and it shall be so provided in the certification itself)
a conclusive determination of satisfaction and termination of the
agreements and covenants in the Agreement with respect to the
1 obligations of the Redeveloper, and its successors and assigns, to
construct the Minimum Improvements and the dates for the beginning
and completion thereof. Such certification and such determination
II shall not constitute evidence of compliance with or satisfaction of
any obligation of the Redeveloper to any Holder of a Mortgage, or
any insurer of a Mortgage, securing money loaned to finance the
Minimum Improvements, or any part thereof.
II (b) The certificate provided for in this Section 3.4 of this
Agreement shall be in such form as will enable it to be recorded in
II the proper office for the recordation of deeds and other
instruments pertaining to the Redevelopment Property. If the
Authority shall refuse or fail to provide any certification in
accordance with the provisions of this Section 3.4 of this
11 Agreement, the Authority shall, within the time period described in
Section 3.6, provide the Redeveloper with a written statement,
indicating in adequate detail in what respects the Redeveloper has
II failed to complete the Minimum Improvements in accordance with the
provisions of the Agreement and what measures or acts it will be
necessary, in the opinion of the Authority, for the Redeveloper to
1 take or perform in order to obtain such certification.
(c) The construction of the Minimum Improvements shall be
I deemed to be completed when construction is substantially
completed, as certified by the Redeveloper's architect; provided,
however, that such determination shall not preclude the withholding
of a Certificate of Completion in accordance with the provisions of
IIthis Section.
Section 3.5 Public Improvements. (a) As an inducement to
1 the Redeveloper to undertake the development contemplated by this
• Agreement, the City by separate action has agreed to undertake, as
permitted by law, and to the extent of its control and authority to
I construct or cause to be constructed the Public Improvements to
serve and benefit the Redevelopment Property.
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(b) The Redeveloper and Authority acknowledge that the City's
financing of the cost of constructing the Public Improvements will
include the assessment of a portion of such cost against benefitted
properties pursuant to and in the manner provided by Minnesota
Statutes, Chapter 429. The Redeveloper and the Authority further
acknowledge that a portion of such cost will be assessed against
the Redevelopment Property. The amount to be assessed against the
Redevelopment is presently estimated to be equal to $171,956.25.
The Redeveloper agrees as partial consideration for the Authority's
obligations hereunder, that it will not contest, on statutory,
constitutional or other grounds, the amount of such assessment to
the extent they are less than or equal to such presently estimated
amounts. The Redeveloper and the Authority understand that nothing
in this paragraph (b) shall be construed either to limit the
opportunity of the City to levy assessments against the
Redevelopment Property in an amount in excess of such presently
estimated amounts or to limit the opportunity of the Redeveloper to
challenge, on the basis of benefit, the amount of any special
assessment levy in excess of the presently estimated amounts.
Section 3.6 Time to Respond - Authority. With respect to any
Redeveloper submittal described in Sections 3.2 or 3.4, the
Authority shall respond not later than five (5) days following the
first regularly scheduled Authority meeting occurring not less than
fifteen (15) 'days from the date of receipt of the submittal or
request.
ARTICLE IV
Insurance
Section 4.1 Insurance. The Redeveloper will provide and
maintain or cause to be provided and maintained at all times during
the process of construction of the Minimum Improvements and, from
time-to-time at the request of the Authority, furnish the Authority
with proof of payment of premiums on:
(i) Builder's risk insurance, written on the so-called
"Builder's Risk -- Completed Value Basis", in an amount equal
to one hundred percent (100%) of the insurable value of the
Phase at the date of completion, and with coverage available
in nonreporting form on the so-called "all risk" form of '
policy;
(ii) Comprehensive general liability insurance (including
operations, contingent liability, operations of
subcontractors, completed operations and contractual liability
insurance) together with an Owner's Contractor's Policy with
limits against bodily injury and property damage of not less
than $1,000,000.00 for occurrence (to accomplish the above-
required limits, an umbrella excess liability policy may be
used) ; and 1
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(iii) Worker's compensation insurance, with statutory
coverage.
' The policies of insurance required pursuant to clauses (i) and (ii)
above shall be in form and content satisfactory to the Authority
and shall be placed with financially sound and reputable insurers
' licensed to transact business in the state. The policy of
insurance delivered pursuant to clause (i) above shall contain an
agreement of the insurer to give not less than thirty. (30) days
advance notice to the Authority in the event of cancellation
thereunder.
Section 4.2 Modification. The Authority agrees that it will
' agree to any reasonable modification of this Article IV to
accommodate the interests of the Redeveloper or mortgagee, but only
to the extent that the Authority determines, in its reasonable
' judgement, that such modification will adequately protect the
legitimate interests and security of the Authority with respect to
the Redevelopment Property.
' ARTICLE V
Tax Increment
' Section 5. 1 Tax Increment Certification. On or before the
date hereof, the Authority has established the Project Area as a
"tax increment district" and has requested that the County Auditor
of the County certify the Assessed Market Value of all taxable real
property in the Project Area pursuant to the Act. The Authority
shall pledge and appropriate the available Tax Increment generated
II by the Redevelopment Property to the payment to the Redeveloper to
the extent and in the manner described in Section 5.3 of this
Agreement.
' Section 5.2 Real Property Taxes. (a) The Redeveloper shall
pay, when due and before penalty attaches, all real property taxes
and installments of special assessments payable with respect to the
' Redevelopment Property.
(b) The Redeveloper agrees that prior to December 31, 1992
' (and in any event with respect to tax payment years prior to 1994) ,
it will not take any of the following actions with respect to the
Redevelopment Property: (1) seek administrative review or judicial
' review of the applicability of any tax statute determined by any
Tax Official to be applicable to the Project or the Redeveloper or
raise the inapplicability of any such tax statute as a defense in
any proceedings, including delinquent tax proceedings; or (2) seek
' administrative review or judicial review of the constitutionality
of any tax statute determined by any Tax Official to be applicable
to the Project or the Redeveloper or raise the unconstitutionality
of any such tax statute as a defense in any proceedings, including
delinquent tax proceedings.
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Section 5.3 Tax Increment. The Redeveloper and the Authority
It
understand and agree that the Tax Increment generated from the
Redevelopment Property, which is actually remitted to the Authority
during each of the three consecutive calendar years beginning with
1992, shall be utilized as follows:
Tax Increment received in each of such years shall first be
used to pay up to one-third of the total principal amount of the
special assessments (as such amount is described in Section 3.5)
levied against the property as of January 1, 1990, as a result of
either previously levied special assessments or the Public
Improvements described in Section 3.5. So long as the Redeveloper I/
is not in default on any of its obligations under this Agreement,
the HRA shall pay from such tax increment any interest accruing on
such special assessments which become due and payable in and after
1992.
Section 5.4 Tax Increment - Payment of Special Assessments. ,
The Authority shall accumulate the tax increment described in
Section 5.3, and may invest the same as it deems proper. For such
accumulated tax increment, the Authority shall annually pay over to
the Redeveloper beginning in 1992 the lesser of: (i) the
accumulated amount of tax increment, or (ii) the total amount of
Special Assessment due and payable in that year and the total
principal payments made on such Special Assessments from 1990 and
1991. It is the intent of the parties that the tax increment paid
over to the Redeveloper will be utilized to pay or assist in the
payment of the Special Assessments due and payable in the year it
is paid over and as reimbursement for previously made principal
payments.
Attached to this Agreement as Exhibit D is a schedule for the
payments contemplated under this Section. The schedule is intended
for descriptive purposes only, and may not correctly indicate the
actual amount of tax increment, years of receipt or the spread of
the Special Assessments.
Such payments from the three years of accumulated tax
increment shall continue to be made annually until either: ii) no
accumulations remain; or (ii) the Special Assessments have been
fully paid; or (iii) the Redeveloper is in default of its 11 obligations under this Agreement; and has failed to cure the same
in the manner provided in Article VI.
The parties agree and stipulate that notwithstanding any
provision in this Section 5.4 to the contrary, the Authority may,
in its sole discretion, utilize the accumulated tax increment to
fully or partially prepay the remaining Special Assessments. I
Section 5.5. Nature of Obligation. The parties acknowledge .
and understand that: ,
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11 (a) The obligation of the Authority is a revenue obligation
and is absolutely limited to the tax increment generated
by the Redevelopment Property and received in the years
1991, 1992 and 1993 only.
(b) The obligation of the Authority is additionally limited
to an amount equal to principal and interest on the
Special Assessments.
Section 5.6. Additional Tax Increment - Uses. Tax increment
' generated by the Redevelopment Property in excess of the amount
required to pay the Special Assessments shall be available to the
Authority for any purpose for which the expenditure of such funds
is permitted by law.
ARTICLE VI
' Events of Default
Section 6.1. Events of Default Defined. The following shall
be "Events of Default" under this Agreement and the term "Event of
Default" shall mean, whenever it is used in this Agreement (unless
the context otherwise provides) , any one or more of the following
events:
a by the( ) Failure y t Redeveloper or Authority to pay when due
any payments required to be paid under this Agreement,
including, but not limited to the payment, when due, of
real estate taxes and installments of Special
Assessments.
' (b) Failure by the Redeveloper to submit Construction Plans
when required in accordance with Section 3.2 of this
' Agreement.
(c) Failure by the Redeveloper to provide and maintain any
insurance required to be provided and maintained by
' Section 4. 1 of this Agreement.
(d) Failure by the Redeveloper to commence and complete
' construction of the Minimum Improvements pursuant to the
terms, conditions and limitations of Article III of this
Agreement.
(e) Failure by the Redeveloper or Authority to substantially
observe or perform any material covenant, condition,
obligation or agreement on their part to be observed or
performed hereunder.
Section 6.2. Remedies on Default. Whenever any Event of
Default referred to in Section 6. 1 of this Agreement occurs, the
party not in default may take any one or more of the following
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actions after providing thirty (30) days written notice to the
party in default of the Event of Default, but only if the Event of
Default has not been cured within said thirty (30) days or, if the
Event of Default cannot be cured within thirty (30) days, the
defaulting party does not provide assurances to the non-defaulting
party reasonably satisfactory to the non-defaulting party that the
Event of Default will be cured as soon as reasonably possible:
(a) Suspend its performance under this Agreement until the
default in question has been cured.
(b) Take whatever action, including legal, equitable or ,
administrative action, which may appear necessary or
desirable to the non-defaulting party, including any
actions to collect any payments required to be made under
this Agreement, or to enforce performance and observance
of any obligation, agreement or covenant of the
defaulting party under this Agreement. ,
(c) Deduct from any payments required to be made by the
Authority to the Redeveloper an amount necessary to
compensate the Authority for any Event of Default by the
Redeveloper.
Section 6.3. No Remedy Exclusive. No remedy herein conferred '
upon or reserved to the Authority or Redeveloper is intended to be
exclusive of any other available remedy or remedies, but each and
every such remedy shall be cumulative and shall be in addition to
every other remedy given under this Agreement or now or hereafter
existing at law or in equity or by statute. No delay or omission
to exercise any right or power accruing upon any default shall
impair any such right or power or shall be construed to be a waiver
thereof, but any such right and power may be exercised from time-
to-time and as often as may be deemed expedient. In order to
entitle the Authority or the Redeveloper to exercise any remedy
reserved to it, it shall not be necessary to give notice, other
than such notice as may be required in this Article VI.
Section 6.4. No Additional Waiver Implied by One Waiver. In i
the event any agreement contained in this Agreement should be
breached by either party and thereafter waived by the other party,
such waiver shall be limited to the particular breach so waived and
shall not be deemed to waive any other concurrent, previous or
subsequent breach hereunder.
ARTICLE VII
Additional Provisions ,
Section 7. 1. Representatives not Individually Liable. The
Authority represents to the Redeveloper that no member, official or
employee of the Authority has an impermissible conflict of interest ,
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which would affect the validity of this Agreement. No member,
official or employee of the Authority, or of Redeveloper shall be
personally liable to any other party, or any successor in interest,
in the event of any default or breach by the Authority, or
Redeveloper or for any amount which may become due to any other
party or successor or on any obligations under the terms of the
Agreement.
' Section 7.2. Titles of Articles and Sections. Any titles of
the several parts, Articles and Sections of the Agreement are
inserted for convenience of reference only and shall be disregarded
in construing or interpreting any of its provisions.
Section 7.3. Notices and Demands. Except as otherwise
' expressly provided in this Agreement, a notice, demand or other
communication under the Agreement by either party to the other
shall be sufficiently given or delivered 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 personally to the Redeveloper at 5315 Third
Avenue South, Minneapolis, Minnesota 55419; and
I (b) in the case of the Authority, is addressed to or
delivered personally to the Authority at 690 Coulter
Drive, Chanhassen, Minnesota 55317, Attention: Executive
Director;
(c) at such other address with respect to either
p party as
that party may, from time-to-time, designate in writing
' and forward to the other as provided in this section.
Section 7.4. Counterparts. This Agreement is executed in any
' number of counterparts, each of which shall constitute one and the
same instrument.
' ARTICLE VIII
Termination of Agreement
Section 8.1. Options to Terminate. This Agreement may be
terminated by Redeveloper or Authority upon the occurrence of one
of the following:
(a) The Redeveloper is unable by December 31. 1990, to obtain
satisfactory financing for construction of the Minimum
' Improvements.
(b) The Redeveloper is unable by December 31. 1990, to
obtain all governmental permits and approvals necessary
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to be obtained prior to construction of the Minimum
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Improvements.
Section 8.2. Action to Terminate. Termination of this
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Agreement due to the occurrence of any of the foregoing shall be
effective only after the giving of thirty (30) days written
notification to the other party; provided, however, that during
said thirty (30) day period each party shall meet with the other I
and negotiate in good faith to determine whether there is any
method by which the reason giving rise to the notification of
termination may be eliminated or ameliorated to the mutual
II
satisfaction of each of the parties.
Section 8.3. Effect of Termination. If this Agreement is
I
terminated pursuant to Article VIII of this Agreement then this
Agreement shall be null and void and of no effect.
IN WITNESS WHEREOF, the Authority has caused this Agreement to
III
be fully executed in its name and behalf and its seal to be
hereunto duly affixed and the Redeveloper has caused this Agreement
to be duly executed in its name and behalf on or as of the date
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first above written.
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THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY II OF CHANHASSEN
By II
Clark D. Horn, Chairman
By
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Don Ashworth, Executive Director
40/L.5 C4 A4 ��/ I ThaE. Korz nows
II
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11 STATE OF MINNESOTA)
ss
COUNTY OF CARVER ).
' The foregoing instrument was acknowledged before me this day
of , 1990, by Clark D. Horn and Don Ashworth, the
' Chairman and Executive Director of the Housing and Redevelopment
Authority in and for the City of Chanhassen, a public body politic
and corporate.
Notary Public
STATE OF MINNESOTA)
' ss
COUNTY OF C.et. '�)
The fore oing instrument was acknowledged before me this /( 1 day
of , 1990, by Thaddeus E. Korzenowski.
f /,/
`.
o ary
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KAREN J. ENCELHARDT
NOTARY PUBLIC- RA sR TA
' • CARVER COe1`!TY
• My commission expires 10-1691
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Exhibit A
Redevelopment Property Description: ,
Lot 2, Block 1, Zamor Addition '
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Exhibit C
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CERTIFICATE OF COMPLETION
The undersigned hereby certifies that Thaddeus E. Korzenowski
g Y
1 has fully and completely complied with its obligations under
Article IV of that document entitled "Contract for Private
1 Development", dated September 7, 1990 between the Housing and
' Redevelopment Authority in and for the City of Chanhassen and
Thaddeus E. Korzenowski with respect to construction of the
' Improvements in accordance with the approved construction plans and
is released and forever discharged from its obligations to
1 construct under such above-referenced Article.
Dated:
1
By:
•Clark D. Horn, Chairman
1 By:
Don Ashworth, Executive Director
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Exhibit D
SPECIAL ASSESSMENT SCHEDULE 1
Specials1 (Principal) Tax Increment
1990 $2,341.20 $9,401.90
1991 2,341.20
1992 2,341.20 1
1993 2,341.20
1994 2,341.20
1995 2,341.20
1996 2,341.20
1997 2,341.20
1998 2,341.20
1
NOTES:
1
Specials include $9,401 90 for '
P pending assessment. Exhibit
assumes that it will be spread for nine years ending in 1998.
2 This is the anticipated tax increment based upon a completed 1
development in 1990 having a market value of approximately
$ 11, 662.13 .
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' CERTIFICATION BY COUNTY ASSESSOR
The undersigned Assessor, being legally responsible for the
assessment of the above described property upon completion of the
improvements to be constructed thereon, hereby certifies that the
' market value assigned to the land and improvements upon completion
and for the term of this Agreement shall not be less than
$ 436,700. 00 .
Orlin H. Schafer, County Assessor
for the City of Chanhassen
STATE OF MINNESOTA )
ss
COUNTY OF CARVER )
' The foregoing instrument was acknowledged before me this day
of , 1990, by Orlin H. Schafer, the County Assessor
for the City of Chanhassen.
' Notary Public
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