82-04 CITY OF CHANHASSEN
HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION
Dated May 20, 1982
Motion by Commissioner Horn
Resolution No. 82-4
Seconded by Commissioner Bohn
RESOLUTION CLARIFYING AMOUNT OF
ASSESSMENT REDUCTION PAYMENTS
AND CLARIFYING NATURE OF COVENANTS
TO BE MADE BY REDEVELOPER
WHEREAS, the Authority by its resolution dated
March 18, 1982, approved plan Modification No. 5, thereby
establishing an assessment reduction program for a portion of
the Downtown Redevelopment District, and
WHEREAS, by said resolution, the Authority approved
a standard form of Assessment Agreement to be used in
connection with said Modification No. 5, and
WHEREAS, it was the intent of this body in approving
Section 3.1 of the standard form of Assessment Agreement, that
the Authority would pay both the interest component and the
principal component of any special assessment installment, but
that only the principal component of such payment would be a
credit against the total of the assessment reduction payment
which the Authority would be obligated to make, and
WHEREAS, it was the intent of this body in approving
Section 7.6 of the standard form of Assessment Agreement that
the covenants of the Redeveloper run with the land and be binding
upon any mortgagee which might come into title to, or possession
of the Redevelopment Property:
NOW, THEREFORE, BE IT RESOLVED, by the Chanhassen
Housing and Redevelopment Authority, as follows:
That the Chanhassen Housing and Redevelopment
Authority hereby approves the revised page number 4, labeled
Rev. 5-11-82, and the revised page 8, labeled Rev. 5-11-82,
and revised page number Sa, labeled Rev. 5/2Q/82, and revised
page number 14, labeled 5/11/82, and revised paged number 15,
labeled 5/11/82.
BE IT FURTHER RESOLVED, that this resolution is
adopted not for the purpose of making any substantive changes
in the standard form of assessment agreement, but rather for
the purpose of clarifying the intent of this body in adopting
it~ resolution of March 18,
No. 5.
Attest-
Executive D~rector
Yes
Horn, Bohn & Whitehill
1982, approving p~an Mo~ifi. cation
Chairman
No
None
Absent
Gullickson & Russell
· ·
Rev. 5/11/82
Market Value previously assigned to the Redevelopment. Property,
and.that upon completion of said Minim,~m Improvements the market
value assigned to the Redevelopment Property shall not be
less than a specified dollar amount stated therein, and that the
Market Value of the Redevelopment Property as of the date of
execution of such certification is a specified dollar amount
stated therein.
"Certificate of Occupancy" means the certification
provided to the Redeveloper, or the purchaser of any part,
parcel or unit of the Redevelopment Property, pursuant to
Section 4.2 of this Agreement.
"city" means the City of Chanhassen.
"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 at least 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 for each building: (1) site plan, (2) foundation plan;
(3) basement plan; (4) floor plan for each floor; (5) cross
sections of each (length and width); (6) elevations (all sides);
(7) landscape plan.
"County" means the County of Carver.
"Date of Execution" means the date on which the
Redeveloper signs this Agreement or the date on which the Agency
signs this Agreement, whichever is later. '
"Eligible Assessments" means those special assessments
(and those unlevied lateral unit charges and trunk unit charges)
which are more particularly described in Modification No.. 5 to
the Plan, and which have been imposed by the City on tracts of
lands contained within the plats of Chanhassen Lakes Business
Park and Park II in connection with either .City of Chanhassen
Improvement Project 78-3 or in connection With any other City
public improvement project which specially benefits said~tracts of
land within said plats. The term "Eligible Assessments" does not
include any building permit fees, any'park charges owing to the
city under applicable ordinances, or any availability or connection
charges owing to the City pursuant to Section 444.075 of Minnesota
Statutes or other applicable statutes or pursuant to applicable
City Ordinances, or any sewer availability charges or similar
charges imposed by the Metropolitan Council or Metropolitan
Waste Control Commission or similar governmental unit. The term
"Eligible Assessments" does not include any interest imposed by
the City in connection with special assessments, unlevied lateral
unit charges, or unlevied trunk unit charges.
"Event of Default" means an action by the Redeveloper
listed in Article VI of this Agreement.
-4-
Rev. 3/10/82
Rev. 5/11/82
ARTICLE III. ASSESSMENT REDUCTION PAYMENTS.
Section 3.1 Obligation Of Agency to Make Assessment Reduction
Payments' bpon completion of the Minimum Improvements and
issuance of the Certificate of Occupancy, the Agency, from the
tax increment generated by the Project shall make payments lin
the manner and in the amount provided hereinafter) in reduction
of the eligible assessments which have been imposed on the
Redevelopment Property and which were unpaid upon the date of
execution of this Agreement.
The Agency, at its option, may satisfy its obligations
to make assessment reductions payments under this Agreement by
either making one lump sum payment or by making a series of
semi-annual payments as individual installments of eligible
assessments bec6me due and owing to the City. In the event
that the Agency elects to make said assessment reduction
payments in the form of a series of semi-annual payments as
individual installments of eligible assessments become due and
owing to the City, the Agency shall also pay the interest imposed
thereon by the City; but only that portion of such interest which
is attributable to that portion of any such installment which
the Agency is obligated to pay under this Agreement. Any such
payments of interest shall not be a credit against the amount
of any assessment 'reduction payment which the Agency is obligated
to make under this Agreement.
In the case of eligible assessments which'have then
already been certified to the County's auditor for collection
with real estate taxes, said assessment reduction payments,
together with any interest which the Agency is obligated to
pay under this §3~1, shall be made directly to the County's
auditor in full or partial satisfaction, as the case may be, of
said eligible assessments.
In the case of eligible assessments which have not
then been certified to the County's auditor for collection with
real estate taxes, said assessment reduction payments, together
with any interest which the Agency is obligated to pay under
this S3.1, shall be made to the City's treasurer in full or
partial satisfaction, as the case may be, of said eligible
assessments.
In the case of eligible assessments which have been
paid by the Redeveloper subsequent to the date of execution
of this Agreement, said assessment reduction payments, together
with any interest which the Agency is obligated to pay under
this S3.1, shall be made directly to the Redeveloper or his
designated successors and assigns.
-8-
Rev. 3/10/82
Rev. 5/11/82
Rev. 5/20/82
Section 3.2 Amount of Assessment Reduction Payment. The
amount of any assessment reduction payment made pursuant to this
Agreement shall be $
which amount is computed as the lesser of the following amoDnts:
(a)
the sum of the principal balance of the eligible
assessments imposed on the Redevelopment
Property, together with accrued interest
thereon, both principal and interest being
computed as of the date of execution of this
Agreement; or
(b)
seven percent (7%) of the excess of the Minimum
~4arket Value of the Redevelopment Property and
the Minimum Improvements constructed thereon
as established pursuant to Section 3.3 of this
Agreement over the Market Value of the
Redevelopment Property as of the date of execu-
tion of the Certification By Assessor, and
as certified in said certification.
-Sa-
(a)
Rev. 3/10/82
Rev. 5/11/82
in the case of the Redeveloper, is addressed
to or delivered personally to the Redeveloper at
(b)
in the case of the Agency is addressed to or
delivered personally to the Agency at Chanhassen
City Hall 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 7.5. Counterparts. This Agreement is executed in any
number of counterparts, each of which shall constitute one and
the same instrument.
Section 7.6 Covenants Running With Land. The recording or
filing of this Agreement with the County Recorder or County
Registrar of Titles shall constitute notice of this Agreement
to any subsequent purchaser or encumbrancer of the Redevelopment
Property, or any part thereof, whether voluntary or involuntary,
and shall be binding upon them. The Redeveloper agrees to
supply the applicable owner's duplicate certificate of title, if
any, so as to permit the recording of a copy of this Agreement
in the office of the Carver County Recorder. It is intended and
agreed that the.covenants and agreements set forth in Article V
of this agreement shall be covenants running with the land and
that they shall, in any event, and without regard to technical
classification or designation, legal or otherwise, be binding to
the fullest extent permitted by law and equity, for the benefit
and in favor of, and enforceable by the Agency, its successors
and assigns. In the event that any transferee or assignee of
the Redeveloper (including without limitation any mortgagee
taking possession of or title to the Redevelopment Property as a
result of any default in the terms of any mortgage to which the
Redevelopment Property is now subject or may be subject in the
future) breaches any one of the covenants and agreements set
forth in said Article V, the Agency may treat such breach as an
Event of Default as provided in Article VI of this agreement
'and may exercise any one or more of the remedies set forth in
S6.2 of this agreement.
IN WITNESS WHEREOF, the Agency has caused this
Agreement to be duly 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 and its
corporate seal to be hereunto duly affixed, on or as of the
date first above written.
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF CHANHASSEN
By
its
(Seal)
And
its
-14-
Rev. 3/10/82
Rev. 5/11/82
(Seal)
STATE OF MINNESOTA)
) sso
COUNTY OF CARVER )
By
its
And
its
(Name of Redeveloper)
The foregoing instrument .was acknowledged before me
this day of ................... , 1'9 '' , by
............. and
the ........... and
of the Housing and Redevelopment Authbrity of the City of
Chanhassen, Minnesota.
Notary Public
County. ·
My Commission Expires:
STATE OF MINNESOTA)
) ss.
COUNTY OF CARVER )
The foregoing instrument was acknowledged before me
this ~day of ...... ..''..'' , 19~, by
· ' , and ............ the ...... a~d
of ..................
a '' corporation, on behalf of said
corporation.
Notary Public
County. ·
My Commission Expires:
This Instrument Drafted By:
LARSON & MERTZ
1900 First Bank Place West
Minneapolis, MN 55402
(612) 333-1511
-15-