HRA 1989 05 15AGENDA
HOUSING AND REDEVELOPMENT AUTHORITY
MONDAY, MAY 15, 1989, 7:30 P.M.
CHANHASSEN CITY HALL, 690 COULTER DRIVE
CALL TO ORDER
1. Approval of April 20, 1989 Minutes.
VISITOR PRESENTATIONS
Anyone wishing to address the HRA may do so at this time.
OLD BUSINESS
2. Update Regarding the Kallestad Properties (Pony Express)
Acquisition and Loren Anderson (Automotive Unlimited)
Acquisition /Pollution Control Agency Report.
NEW BUSINESS
3. Consideration of Special Assessment .Agreement, Lakeshore
Equipment.
4. Consideration of Special Assessment Agreement, Paisley Park.
5. Approval of Bills.
6. Adjournment.
I
HOUSING AND REDEVELOPMENT AUTHORITY MINUTES
APRIL 20, 1989
CALL TO ORDER: Chairman Whitehill called the meeting to order at
7:33 p.m. Members Present: Commissioners Whitehill, Swenson,
Horn, Bohn and Robbins. Also present were Don Ashworth,
Executive Director and Todd Gerhardt, Assistant Executive
Director.
APPROVAL OF MINUTES: Motion by Robbins, seconded by Bohn to
approve the March 16, 1989 minutes as presented. All voted in
favor and the motion carried.
Commissioner Swenson requested that in the future if minutes are
corrected that a copy of those corrected minutes be included in
the next packet. Staff agreed.
APPROVAL OF DEVELOPMENT CONTRACT FOR THE MEDICAL ARTS BUILDING:
Ashworth explained that the HRA should have received in the mail
the final Development Contract for the Medical Arts building and
that staff was prepared to answer any questions regarding the
agreement. The HRA requested that for future contracts that
staff underline any changes throughout the agreement. Staff
agreed and stated they will contact the attorney to underline all
changes to development contracts.
Motion by Robbins, seconded by Bohn to approve the Medical Arts
Building Development Contract as presented. All voted in favor
and the motion carried.
SETTLEMENT AGREEMENT, KALLESTAD ENTERPRISES: Ashworth explained
the settlement of condemnation action with Kallestad, Inc., and
that all settlements were in line with the original estimates for
the project. Ashworth presented information regarding the
acquisition of the Kallestad building (Pony Express Bar). If the
acquisition is to occur, staff should be directed to acquire the
building in the very near future.
The HRA expressed some concern on how exactly the area will be
converted and that a specific plan be prepared. However, the HRA
also felt the negotiation for acquisition should begin imme-
diately before the dollar amount got too far out of line.
Motion by Whitehill, seconded by Swenson to direct staff to nego-
tiate the purchase of the Kallestad property. All voted in favor
and the motion carried.
111* i001"fil`l
AL REDEVELOPER
tM111600W.]
PLAINS BLVD. AND DAKOTA AVENUE: Ashworth
Realty's request to be designated as the
lands north of Highway 5 and south of the
mature at this point. Staff has directed
pare a study outlining the uses for this
road that may potentially be used. Staff
action be taken on this item until the st
stateo that Lotus
redeveloper for those
railroad tracks is pre -
Fred Hoisington to pre -
area and a public /private
requested that no
udy is completed.
HOUSING AND REDEVELOPMENT AUTHORITY MINUTES
APRIL 20, 1989
PAGE 2
Mr. Brad Johnson addressed the HRA agreeing with Mr. Ashworth and
his findings. Mr. Johnson asked the HRA for their thoughts on the
amount of assistance they would provide for the redevelopment of
this area. The amount of assistance the HRA might look favorable
upon would be the same assistance that was provided to the busi-
nesses in the industrial park, i.e. approximately three years
worth of taxes for the Hanus redevelopment. The HRA agreed with
Mr. Ashworth regarding the acquisition of parcels 4, 6 and 7 and
that until Mr. Hoisington completes the study that no further
action should be taken regarding the acquisition of these properties.
The HRA also stated that Mr. Johnson should continue to work with
staff in defining the total costs, increment generated and total
amount of assistance needed.
Motion by Whitehill, seconded by Swenson to encourage Mr. Johnson
to continue working with staff in pursuing the redevelopment of
the Hanus area and the HRA would potentially provide three years
worth of increment assistance. All voted in favor the motion
carried.
CROSSROADS NATIONAL BANK: Ashworth explained that the HRA should
have received the proposed Development Contract with Crossroads
National Bank. Staff introduced John Dean to review the
agreement.
Swenson expressed specific concern over the agreement regarding
the following issues:
1.
Changing the lot size
from 3 acres
to
110,000 sq. ft.
2.
The timing regarding
the start of
the
project.
3. Specific demand regarding the right -in /right -out off of
Market Blvd.
Swenson was particularly concerned that it is possible that the
project may not start for 2 to 3 years.
Tom Mork, President of Crossroads National Bank responded to
Swenson's concern about the lot size. Mr. Mork felt that through
the negotiations it was always understood that the size of the
lot would be consistent with the size of the facility
constructed. The timing for the project is still anticipated to
start yet this fall. However, assurances are needed in case
problems do occur and the project may be delayed for whatever reason.
Access to Highway 5 is very important and again the bank needs
assurance that access will be there and in proper condition.
The HRA expressed that they did not want to see the project
extended over three years.
HOUSING AND REDEVELOPMENT AUTHORITY MINUTES
APRIL 20, 1989
PAGE 3
Motion by Whitehill, seconded by Robbins to approve the
Development Contract with the changes as presented by John Dean.
All voted in favor with the exception of Swenson who abstained.
Motion carried.
— APPROVAL OF EMPAK SPECIAL ASSESSMENT AGREEMENT: Gerhardt explained
that this item was the first draft of the Special Assessment
Agreement which includes the modification of the total incentives
arrived at through calculating three years worth of taxes.
The proposed Empak agreement would provide $561,774 worth of
— assistance. The estimated specials and land write -down would
total $535,395, leaving the remaining increment of $26,379.
Staff recommends approval of the Private Development Contract
with County 17 Chanhassen Partnership for the development of
94,590 sq. ft. office /manufacturing facility.
Motion by Whitehill, seconded by Horn to approve the Private
Development Contract with County Road 17 Chanhassen Partnership.
All voted in favor and the motion carried.
CONSIDERATION OF ASSISTANCE FOR OAKVIEW HEIGHTS TOWNHOUSE
— DEVELOPMENT: Gerhardt explained that Mr. Dean Johnson requested
time on the agenda to receive input from the HRA regarding his pro-
posed townhouse development. The HRA expressed concern by pro-
- viding any land write -down regarding the development or even
providing special assessment assistance. Horn explained that he
would not take any action on this item until the Planning
Commission and City Council provided input regarding the overall
planning of this project and how it may fit into the City's
plans.
Motion by Whitehill to provide special assessment assistance only
with no land write -down. The motion died for lack of a second.
Swenson expressed reservation
occupied project and writing
development compared to those
no assistance.
to provide assistance to an owner
down the costs associated with the
projects outside the district with
No further action was taken on this item.
SPECIAL ASSESSMENT REDUCTION AGREEMENT, HOTEL SITE: Ashworth
explained the details of the project regarding the building demo-
lition and site work. Staff requested the HRA to authorize staff
— to enter into a special assessment reduction agreement with the
hotel property owners subject to the following conditions:
The special assessment agreement shall be calculated in
exactly the same manner as for all special assessment
reduction agreements to date with the exception of the
following two points; and
HOUSING AND REDEVELOPMENT AUTHORITY MINUTES
APRIL 20, 1989
PAGE 4
- An additional section be added permitting the developer to
be reimbursed for grading expenditures associated with the
parking lot project with the right for him to use the
excess material from the parking lot area in any manner
desired by him; and
- That a section be added to the reduction agreement allowing
for the developer to be reimbursed costs of demolishing the
flat /gable roofed sections of the Instant Web building with
reimbursement of both the grading and demolition to occur
in November, 1989.
Motion by Horn, seconded by Swenson to approve the special
assessment reduction agreement with the Hotel Partners with the
conditions as outlined by staff. All voted in favor and the
motion carried.
OF THE FLAT - ROOFED AND GABLE - ROOFED P
OLD INSTANT WEB BUILDING FOR THE HOTEL SITE: Ashworth explained
the detail associated with the development of the hotel and
suggested we provide assistance to the hotel similar to that pro-
vided to Retail West and Medical Arts. The details as explained
would provide $150,000 land write -down on Lot 1, Block 1,
Chanhassen Mall and $75,000 for demolition and site grading.
Motion by Whitehill, seconded by Robbins to provide assistance in
the costs incurred by the Hotel Partnership for demolition and
site grading and that invoices for these costs be submitted for
reimbursement. The HRA will also assist in land write -down of
$150,000 on Lot 1, Block 1, Chanhassen Mall if the hotel is built
on this site. The subject shown on the agenda was incorrect and
acquisition was not the action taken by the HRA. All voted in
favor and the motion carried.
APPROVAL OF BILLS: Motion by Robbins, seconded by Bohn to
approve the bills as presented. All voted in favor and the
motion carried.
ADJOURNMENT: Bohn moved, seconded by Swenson to adjourn the
meeting at 9:45 p.m. All voted in favor and the motion carried.
Prepared by: Todd Gerhardt
MEMORANDUM
CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900
TO: Housing and Redevelopment A thority
PROM: TodB. G s ^.�n1L; ;i:;tant Executive Director , C k-,
DATE: May 12, 1989
SUBJ: Update Regarding the Kallestad Properties and Loren
Anderson Acquisition
Staff will be prepared to give a verbal update to the HRA at
Monday night's meeting regarding the progress to date with the
Kallestad property acquisition and Loren Anderson acquisition/
Pollution Control Agency report. Staff will not be requesting
specific action on either of these items, but placed it on the
agenda as an information item.
I
MEMORANDUM
CITY OF 3
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900
TO: Housing and Redevelopment Authority
FROM: Todd Gerhardt, Assistant Executive Director )GIk"
DATE: May 12, 1989
SUBJ: Consideration of Special Assessment Agreement, Lakeshore
Equipment
Attached for the HRA's consideration is a Special Assessment
Agreement for Lakeshore Equipment for the development of a 7,200
sq. ft. office /warehouse facility. The site is located on Lot 21,
Block 3, Chanhassen Lakes Business Park (see Attachment No. 1).
The estimated amount of incentives available totals $43,272.00.
The following calculation represents taxes for the proposed
development for one year:
Minimum Market Value:
Total Estimated Taxes:
$316,000.00
100,000.00
$216,000.00
x 5.158
$ 11,124.00
3,300.00
$ 14,424.00
The total amount of special assessments against the property are
$40,272.00. In this case the HRA could provide a total write-
down of specials only.
Total 3 years Tax $ 43,272.00
Specials - 40,272.00
Remaining Increment $ 3,000,00
RECOMMENDATION
Staff recommends approval of the Special Assessment Agreement
with Lakeshore Equipment and their development of a 7,200 sq. ft.
office /warehouse facility.
ATTACHMENTS
1. Location map.
2.. Special Assessment Agreement.
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ASSESSMENT AGREEMENT
CHANHASSEN HRA SPECIAL ASSESSMENT REDUCTION PROGRAM
t THIS AGREEMENT, made on or as of the !,, day of A�
194, by and between The Housing and Redevelopment Authority inn
— and for the City of Chanhassen, a public body corporate and politic
(the "Agency "), established pursuant to Laws of Minnesota 1947,
Chapter 487, as amended, being Minnesota Statutes, Sections 462.411-
- 462.711 (the "Act "), and
(the "Redeveloper ").
WITNESSETH:
WHEREAS, the Agency was created pursuant to the Act and
was authorized to transact business and exercise its powers by a
resolution of the City Council of the City of Chanhassen (the "City ,,);
and
WHEREAS, in furtherance of the objectives of the Act, the
Agency 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 (the "Project "),
in an area (the "Project Area ,,), located in the City; and
WHEREAS, as of the date of this Agreement there has been
prepared and approved by the Agency and the City a redevelopment
plan for the Project; and
WHEREAS, the Agency requested the County of Carver (the
"County, -) to certify the current assessed value of the real property
within the Project Area pursuant to Section 462.585 of the Act thereby
establishing the Project as a tax increment financing district;
and
WHEREAS, the major objectives of the Redevelopment Plan
are to: acquire for rehabilitation economically or functionally
obsolete or underutilized buildings and land; provide a redevelopment
site of character that will encourage future development of the
area and improve sources of public revenue; eliminate blighting
influences which impede potential. development within the aforementioned
redevelopment project; provide maximum opportunity for redevelopment
by private enterprise, consistent with the needs of the City as
a whole; encourage private rehabilitation of structures within the
redevelopment project; and
WHEREAS, in order to achieve the objectives of the Redevelopment
Plan and particularly to make the land in the Project Area available
for redevelopment by private enterprise for and in accordance with
the uses specified in the Redevelopment Plan, the Agency has determined
to provide substantial aid and assistance to the Project through
the sale of bonds to finance the public costs of the redevelopment
Of the Project Area; and
01/06/88
WHEREAS, the Agency believes that the redevelopment of a
t portion of the Project Area pursuant to this Agreement, and fulfillment
generally of the Agreement, are in the vital and best interests
of the City and the health, safety, morals, and welfare of its resi-
dents, 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; and
WHEREAS, the Agency has concluded agreements for the redevelop-
ment of the various properties to be acquired in furtherance of
the Project; and
M
L
WHEREAS, said agreements provide recourse for the Agency
should such redevelopment not be completed; and
WHEREAS, Section 273.76 (Subd. 8) of Minnesota Statutes
empowers the Agency to enter into written assessment agreements
with redevelopers of properties within the Project Area; and
WHEREAS, the Redeveloper will construct certain minimum
improvements upon the Redevelopment Property; and
WHEREAS, the Agency, and the Redeveloper desire to establish
a Minimum Market Value for the Redevelopment Property and the Minimum
Improvements to be constructed thereon pursuant to Minnesota Statutes,
§273.76, Subd. 8, and §462.445, Subd. 4 (1 and 16); and
WHEREAS, the Agency and the Assessor have reviewed the Construc-
tion Plans for the Minimum Improvements; and
WHEREAS, the Assessor, acting pursuant to §273.76, Subd.
8 of Minnesota Statutes, has executed a Certification By Assessor
as to the Redevelopment Property and the Minimum Improvements to
be constructed thereon; and
WHEREAS, the original. copy of said Certification By Assessor,
or a true and correct copy thereof is attached to this Agreement
as Exhibit "C" and made a part hereof:
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:
ARTICLE I. DEFINITIONS.
Section 1.1 Definitions. In this Agreement, unless a different
meaning clearly appears from the context:
"Act" means the Municipal Housing and Redevelopment Act,
Minnesota Statutes, Sections 462.411 et seq., as amended.
"Agency" means the Housing and Redevelopment Authority in
and for the City of Chanhassen.
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"Agreement" means this Agreement, as the same may be from
_ time to time modified, amended, or supplemented.
"Assessment Agreement" means any agreement substantially
similar to this Agreement providing for payment by the Agency of
eligible assessments from the tax increments received by the Agency
in connection with the Project.
"Assessment Reduction Payments" means payments made by the
Authority to either the City or to the County's auditor, as a credit
against eligible assessments, pursuant to Article III of this Agreement
or pursuant to agreements similar to this Agreement with other redevel-
opers of land in the Project Area.
"Assessed Value" or "Assessed Valuation" means the value
of real property as determined by the assessor in accordance with
Minnesota Statutes, Section 273.13 (or as finally adjusted by any
assessor, board of equalization, commissioner of revenue, or any
court) against which the real property tax is imposed.
"Assessor" means the Carver County Assessor or a City Assessor
having the powers of the Carver County Assessor as to properties
within the Project Area.
"Bonds" means the general obligation bonds or obligations
issued by the City or the Agency to finance the costs of the Project
including but not limited to the Assessment Reduction Payments made
by the Authority pursuant to Modification No. 6 to the Plan.
The term "Bonds" shall also include any general obligation
bonds or obligations issued to -refund any Bonds.
"Certification By Assessor" means the Assessor's certification
pursuant to Section 273.76, Subd. 8 of Minnesota Statutes, and Section
3.3 of this Agreement that he has reviewed the Construction Plans
for the Minimum Improvements and the Market Value previously assigned
to the Redevelopment Property, and that upon completion of said
Minimum 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.
"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
(if any); (4) floor plan for each floor; (S) cross sections of each
(length and width); (6) elevations (all sides); (7) landscape plan.
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"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 pending,
levied, or otherwise for Chanhassen public improvement projects
78 -3, 84 -4, 85 -13, 86 -13, 86 -14, 87 -1, 87 -2, and 87 -9. 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 IV of this Agreement.
"Market Value" or
fair market value of real.
in accordance with Minnes
adjusted by any assessor,
revenue, or any court).
"Market Valuation" means the estimated
property as determined by the Assessor
Dta Statutes, Section 273.11 (or as finally
board of equalization, commissioner of
"Maturity Date" means the date when the principal of, premium
(if any), and interest on the Bonds are'paid in full..
"Minimum Improvements" means those improvements which are
more particularly described on Exhibit "A" attached 'hereto and made
a part hereof.
"Minimum Market Value" means Market Value established pursuant
to Section 3.3 of this Agreement.
"Modification No. 6" means the sixth amendment to the Plan
adopted by the Agency amending the program of Assessment Reduction
Payments and the resolution adopting the same.
"Plan" means the Chanhassen Downtown Redevelopment Plan
as described in the "Chanhassen Downtown RedeveLopment Project Amended
Plan, February, 1980, Revised March 20, 1.980" booklet, as further
amended from time to time by the Agency.
"Project" means the Chanhassen Downtown Redevelopment Project
as described in the "Chanhassen Downtown Redevelopment Project Amended
Plan, February, 1980, Revised March 20, 1980" booklet, as further
amended from time to time by the Agency.
S0
"Project Area" means the real property located within the
l boundaries of the entire redevelopment district as described in
Figure 1 contained in the "Chanhassen Downtown Redevelopment Project
Amended Plan, February, 1980, Revised March 20, 1980" booklet.
"Real Estate Taxes" means ad valorem taxes on real property
pursuant to Chapter 273 of Minnesota Statutes and not including
any special assessments levied pursuant to Chapter 429 of Minnesota
Statutes.
"Redeveloper" means akP nr� pri e �r� or its
successors and assigns.
"Redevelopment Property" means the real property which is
more particularly described in Exhibit "B" attached hereto and made
a part hereof.
"Redevelopment Plan" means the Plan.
"State" means the State of Minnesota.
"Substantial Completion" means sufficiently complete, in
accordance with the Construction Plans for the Minimum Improvements,
so that the Redeveloper (or its successors and assigns) may occupy
the work for the use for which the Minimum Improvements are intended.
If the Minimum Improvements are to be occupied by one or more tenants
rather than the Redeveloper and no leases have been entered into
with any tenants that would serve as the basis for constructing
and installing interior improvements in the Minimum Improvements,
then "Substantial Completion" shall mean that the structure, common
building systems and utilities are substantially complete so that
a Certificate of Occupancy may be obtained by Redeveloper upon comple-
tion of the construction and installation of normal and customary
interior improvements for the benefit of tenants occupying space
in the Minimum Improvements.
"Tax Official" means any City or County assessor, County
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.
ARTICLE II. REPRESENTATION AND WARRANTIES.
Section 2.1. Representation by the Agency. The Agency makes the
following representations as the basis for the undertaking on its
part herein contained:
(a) The Agency is a housing and redevel- opment authority
duly organized and existing under the laws of the State.
(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.
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(c) The Project is a "tax increment district" created,
adopted, certified and approved pursuant to Ninnesota Statutes,
Section 462.555.
(d) The Agency has established the Project Area as a "tax
increment district" and has requested that the County auditor of
the County certify the Assessed Valuation of all taxable real property
in the Project Area pursuant to Minnesota Statutes, Section 462.5 85.
(e) The activities of the Agency 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.
(f) To finance the cost of the activities to be undertaken
by the Agency, the Agency proposes to use the proceeds of Bonds
issued either by the City or the Agency and to pledge tax increment
generated by the Project Area to the payment of the principal of
and interest on the Bonds.
Section 2.2 Representation and Warranties by the Redeveloper.
The Redeveloper represents and warrants thaat:
(a) The Redeveloper is a C.L%C iraldd✓1 duly organized
and in good standing under the laws of the State of Minnesota, is
not in violation of any provisions of its articles, partners.iip
or incorporation, as the case may be, or the laws of the State of
Minnesota, has power to enter into this Agreement and has dully author-
ized the execution, delivery and performance of this Agreement by
proper action.
(b) The Redeveloper will. construct the Minimum Improvements
in accordance with the terms of this Agreement, the Plan and all
local, state and federal laws and regulations (including, 'buz not
limited to, all. known applicable environmental, zoning, builiing
code and public health Laws and reguLations), as such la,,,' s and regula-
tions are enacted and enforced during the period the Minimum Improve-
ments are being constructed, and substantially in accordance with
the Construction Plans which have been approved by the Agency.
(c) The Minimum improvements constitute a permitted use
or authorized conditional. use under the zonirig ordinance of the
City, a permitted use under the Plan and the Act.
(d) That it such time or tiim s as may be required by law,
the Redeveloper will have complied with all known applicable local,
state and federal onvirnnmental laws ,Ind regulations, will have
obtained any Find all. known applicable environmental reviews. licenses
or clearances as to the Redevelopment Property, and that Redeveloper
has received no notice or communisation from any local, state or
federal official that the activities of the Redeveloper in violation
Of the law or regulation (other than those notices or communications
Of which the Agency is aware). The Redeveloper is aware of no facts
-6-
the existence of which would cause it to be i -n violati.on of any
local, state or federal environmental law, regulation or review
procedure or which would give any person a valid claim under state
environmental rights statutes.
(e) The Redeveloper will use all reasonable efforts to
construct the Minimum T_rnprovernents in accordance with all existing
local, state or federal energy- conservation laws or regulati -ons.
The Minimur:: Improvements shall be completed on or before ��L� )Jgci
(f) The Recteveloner will obtain, in a timely manner, all
required permits, licenses and approvals, and will meet, in a timely
mariner, all requirements of all local, state and federal laws and
regulations which must be obtained or met before the -Minimum Improve-
- ments may be lawfully constructed.
(g) The real estate taxes and any installments of special
assessments levied against the Redevelopment Property are not in
default and that further real estate taxes will be paid when due.
ARTICLE, IT_I. ASSESSMENT : E,DUCT'O_ti PAYN'FNTS.
Section 3.1 Obligation of F,gencv to Make Assessment Reduction Payments.
Upon completion of the Minimum Improvements the Agency, from the
tax increment enerated b;
g � the Project, shall :Hake payments (in
the mariner and in the amount provided here! atter) in reduction
of the eligible assessments which have been unposed on the Redevelopment
Property and which were unpaid upon the
Agreement. date of execution of this
The Agency, at its option, may satisfy its obligations to
make assessment reduction payments under this Agreement by either
making one lump sure payment or by making a series of semi - annual
payments as individual installments of eli -gible assessments become
due and owing to the City, in the event that the Agencv elects to
make said assessment reduction: payments in the _foram of a series
of semi - annual payments as individual installments of eligible assess-
ments become due and owing to the City, the Agency shall also pa.y
the interest i-r,' p osed 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 obligate- t p
Any such payments of interest shall notebe a credit against the
Eer.ent
amount of any assessment. reduction payment which the Agency is obligated
Co make under this Agreement.
In the case of eligible assessments which have then already
been certified to tare 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 Section
3.1, shall be made directly to "he County Auditor in full or partial
satisfaction, as the case may be, of said eligible assessments.
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t
C_
In the case of eligible assessments which, have riot then
been certified to the County's auditor for collection with real
estate taxes, said assessment reduction payments, together with
any interest whicn the Agency is obligated to pay under this Section
3.1, shall be made to the City's treasurer in full or partial satis-
faction, 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 Agree-
ment, said assessment reduction payments, together with any interest
which the Agency is obligated to pay under this Section 3.1, shall
be made directly to the Redeveloper or its designated successors
and assigns.
Section 3.2 Amount of Assessment Reduction Payment. The amount
of any assessment �redLuctj�ion pa ment made pursuant to this Agreement
shall not exceed YOf1, /Arpe �1tveCryyz% /r /yu�r�rrYlSe lars (S
and shall be compute as the lesser of the. followfi' '9Rounts:
(a) the sum of the principal balance of the eligible assess-
ments 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) 1. where the principal balance of eligible assessments
imposed on the Redevelopment Property is equal
to or less than 530,000.00 per acre, seven percent
(7 %) of the excess of the r- linimum ^Market Value
of the Redeveloprnent Property and the Minilm,um Imorove-
rnents constructea thereon as established pursuant
to Section 3.3 of this Agreement over the f.;arket
Value of the Redevelopment Property as of the date
of execution of the Certification By Assessor,
and as certified in said certification: o:•
2. where the principal balance of eligible assessments
imposed on the Redeveloprnent Property exceeds
`:130,000.00 per acre, twelve percent (12 00) of the
excess of the Minimum Market Value of the Redevelopment
Property and the Minimum Improvements constructed
thereon as established pursuant to Section. 3.3
of this Agreement over the iMarket Value of the
Redevelopment Property as of the date of execution
of the Certification By Assessor, and as certified
in said cert:.fication; or
3. at the option of the FR. ^,, the amount equallinq
three years of captured increment generated as
a result of the issuance of a building permit which
can rationally be shown as the impetus which generated
the captured increment. Captured increment shall
only apply to the parcel which generated such incre-
/ ment, except, if for assessment purposes, the county
l assessor has treated the complex overlaying a group
of parcels as a single unit. In such cases, the
captured value for the complex as a whole may be
applied to, and only to, the parcels overlayed
by the complex.
Section 3.3 Construction and Value of Minimum Improvements. The
Redeveloper agrees to construct (or cause to be constructed) upon
the Property the Minimum Improvements described in the attached
Exhibit W, which together with existing improvements shall have
an Assessor's Market Value, as determined by the County Assessor
of Carver County in accordance witl pplicab.le law, of not less
than �r22 1 �ctv�C�Y (d Si
dollars ($ ) on The Redeveloper shall
not through ( atement pr ceedings, and /or (b) any proceeding
commenced pursuant to Minnesota Statutes, Chapter 278 or any similar
law, and /or (c) willful demolition of Minimum Improvements on the
Property, and /or (d) any other means, cause the Assessor's Market
Value of the Property and the Minimum Improvements, and any other
improvements constructed on the Property, to fall below such amount.
Except as expressly provided otherwise herein, no provision of this
Agreement shall restrict the Redeveloper from the construction of
additional improvements on the Property. The Minimum Market Value
established in this section shall be of no further force and effect
and this Agreement small terminate on the later of the two following
dates:
(a) the date on which the Bonds are retired. or
(b) the date on which all assessment reduction payments
due the Redeveloper (or its successors and assigns)
pursuant to this Agreement have been made.
Provided, further, that nothing in this Agreement shall limit the
discretion of the Assessor to assign a market value to the Redevelopment
Property in excess of the Minimum Market Value set forth in this
section.
Section 3.4 Termination of Entitlement to Pavment. Notwithstanding,
any language in this Agreement to the contrary, the obligation of
the Agency to make any assessment reduction payment to the Redeveloper
(or its successors and assigns) shall become null and void on Ascuss
unless the blini.mum Improvements are in a state of substan-
tial Coopietion (as defined in section 1.1) on or before said date.
.Nevertheless, in the event Redeveloper is delayed in substantially
completing the construction of the Minimum improvements on or before
the date specified herein by reason of labor disputes, casualties,
acts of coa or the public enemy; governmental embargo restrictions,
shortages of fuel, labor or ;wilding materials, action or ncn- action
Of public utilities or of local, state or federal governments affecting
the work, or other causes beyond the reasonable control or fault
Of Redeveloper, then the date for substantial completion of the
W
r Minimu;,, improvements shall be e;;tended for the additional time caused
by such excused delay. Any such extension resulting from an excused
delay shall not serve to extend the effective date of the btinimum
Market Value or the real estate taxes levied with respect to the
Minimum Market Value provided for in this Agreement.
in the event the Minimum Improvements are not in a state
of Substantial Completion on or before the date specified herein
or such extension thereof as may result from an excused delay, and
as a result the Agency elects not to make anv assessment reduction
payment in accordance with the terms of this Agreement, then this
Agreement shall cease and terminate without further obligation or
liability on the part of the Agency or Redeveloper.
ARTICLE IV. EVENTS OF DEFAULT.
Section 4.1 Events of Default Defined. The following shall be
"Events c De aulc' 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 (and the term "default'- shall mean any event which would
with the passage of time or giving of notice; or both, be an "Event
of Default;; hereunder) :
(a) Failure of Redeveloper to pay when due any real estate
taxes on the redevelopment Property;
(b) Failure of the Redeveloper to complete the A!inimum
Improvements on or before the date stated in Section
.4 of `his Agr ee:nent.
(c) :allure by the Redeveloper to observe and perforn; any
covenant, condition, obligation or on its part to be
observed or performed hereunder, within thirty (30)
days after, written notice to the Redeveloper specifying
such failure and recuestinc; that it be remedied (or
ail.hin such other period as other.aise expressly provided
in this Agreement); or if the failure is by its nature
insurable within such Chirtp (3o) days, lailure by
the aedevelooer to furnish to the Agency sati_sfactory
assurances that tae Redeveloper can and .vill cure such
failure or failures within reasonable time.
(a) Tf the Redeveloper shall admit in writing its inability
to pay its debts generally as they become due, or shall
file a petition in ban:kv,uptcv or shall ¢iake an assignment
ion• ch-0 I)evlefit of its creditors. or shall consent
to the appointment of a receiver of itself or of the
whole or c,ny substantiaL part of the ,?edevelooment
Property.
(e) If the Redeveloper shall file a. petition or, answer
seeking reorganization or arrangement under the federal
bankruptcy laws.
-10-
r ( ) if the Redeveloper, on a petition in bankruptcy filed
against it, be adjudicated a bankru_ot, or a court of
competent jurisdiction shall enter an order or decree
appointing, without the consent of the Redeveloper,
a receiver of the Redeveloper or of the whole or substan-
tially all of its property, or approve a petition filed
against the Redeveloper seeking reorganization or arrange-
ment of the Redeveloper under the federal bankruptcy
laws, and such adjudication, order or decree shall
not be vacated or set aside or stayed within sixty
(60) days from the date of entry thereof.
Section 4.2 Remedies on Default. whenever any Event of Default
referred to in Section 4.1 of this Agreement occurs. the Agency
may make any one or more of the following actions:
(a) Cancel and rescind this Agreement.
(b) Withhold the Certificate of Occupancy.
(c) Cancel any pending Assessment Reduction Payments due
under the terms of this Agreement, causing a forfeiture
of such payments in favor of the Agency.
(d) Take whatever action at law or in equity may appear
necessary or desirable to the Agency to collect_ from
the Redeveloper full rei_rr,bursernent for anv Assessment
Reduction Payments previously made oursuant to tail
Agreement.
Notwithstanding the prior ;D Ovisions Of t;is Section 4.2, it is
agreed that the Agency shall not be entitled to witahold a Certificate
Of Occupancy in the event that the Agency elects to cancel and rescind,
tais Agreement unoer clause (a), or Redeveloper re unburses .agency
for any Assessment Reduction. Payments iTlaae by Agency prior t0 the
occurrence Of such ;vent Of Default, together w-ich any reasonable
expenses incurred by Agency in enforcing the provisions of this
Agreement, or Redeveloper cures any ;vent of Default to the satisfaction
of Agency and the parties are ,restored to taeir or;ner posi`iOns
under tree provisions of this Agreement.
Section 4.3 io Remedy °xclusive. :;o remedy herein conferred upon
_ or reserved to the Agency is intended i;o be _.:Elusive of any other
available remedy or remedies, but each and every such remedy shall
be cumulative and shall be in addition to every other remedv gi_vcn
under this Agreement Or now or hereafter e;cisting at law or in o. airy
Or by statutes. No delay or- ornission to e;cerc:ise any right or (Dower
accruing upon any default shall itcpair any such right or power or
snall be construed to be a waiver thereof, but any such right and
Power r..ay be exercised from t;irne to time and as often as may be
deemed Expedient. In orcter to entitle the Agency to er,ercise any
f remedy reserved to it, it shall not be necessary to give notice.
3
- 11 -
t
s
` Section 4.4 No Adalitional 6daiver Implied by One waiv °r. In the
t event any agreement contained in this Agreement should be breachea
by either warty and trereafter 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 subseauent
breach hereunder.
ARTICLE V. ADDIT -OVAL PROVISIONS.
Section 5.1 Conflict of Interest: Agency Representatives Not Individu-
ally Liable. No ritiember:, official or employee or the Agency shall
have any personal interest, direct or indirect, in the Agreement,
nor shall any such member, official, or employee participate in
any decision relating to this Agreement which affects his personal
interests or the interests of any corporation, partnership, or associ-
ation in which he is, directly or indirectly interested. Ho member,
official, or employee of the Agency shall be personally liable to
the Redeveloper or any successor in interest, in the event of any
default or breach by the Agency or for any Assessment Reduction
Payrnenc which may become due under the terms of this Agreement.
Section 5.2 Duty of Agency to Act iieasonablv. wherever this Agreement
-requires the Agency to approve any action of the Redeveloper. it:
is understood and agreed that the Agency will not unreasonably withhold
or delay such approval.
Section 5.3 Titles of Articles and Sections. Anv titles of the
several parts, Articles, and Sections of this Agreement are inserted
for convenience of reference only and shall be disregarded_:, in construing
or interaretir:g any of its provisions.
Section 5.4 ;•;otices and Dern_anas. Except as others -jise exp: °essly
provided :n t is Agreement, a notice, demand, or other communication
under this Agreement by either party to the other shall be _t•ffici.ently
given or cielivered if it is ais;patched by registered or cartified
mail, postage prepaid, return receipt requested, or delivered personally
and
(a) in the case o_ the Redeveloper, is addressed to or•
I live a personally to the ^ edeveloper at %� L
(b) in .,he case of ''he Agency ' addressed to or ueli.vered
personally to the Agency at Chanhassen City Hail, 69(0
Coulter Drive, Chani)QSsc -n, fiiinnesota 553117,
or, at such Other aotaress liit:h respect to t itner suck] 'party a t;l:it
party may. rrom Lime to r.e. desic;'Wlte in writing_ arid to.rwar'c to
the othe' as provided in this SE'_Ction.
Section Fi.5 Couni;erparts. Ca 2.5 i�.g CE'r'i E,n i. s t_'Y.ecui:da in anV number
of counterparts, eacn of ;vhi.cPl shall constitute one and the same
iris t rumen! t .
-12-
Section 5.6 Covenants Running with Land. The recording or filing
of this :agreement with the County Eecorder or County Registrar of
Titles shall constitute notice of this Agreement to am subseauent
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 per the recording
of a copy of this Agreement in the office of the Carver County Recorder.
It is intended and agreed that the covenants ana agreements set
forth in Section 3.3 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 anv transferee or assignee
of the Redeveloper (including without limitation anv 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 aria agreements set forth in said Section
3.3, the Agency may treat such breach as an event of Default as
provided in Article IV of this Agreement and may exercise any one
or more of the remedies set forth in Section 4.2 of this Agreement.
Section 5.7 Limitation of Liability. The Redeveloper and its succes-
sors in tee title ownership of the Red.eveloprnent Prope ry shall.
be responsible for performing and observing the covenants and agreements
set forth n this Agreement only during the tiTre that the Redeveloper
or a successor is the fee title oianer of the Redevelopment Property.
Irr the event fee title to the Redevelopment Property is conveyed
to a successor in interest, the grantee shall be automatically .espon-
sible for performing and observing the covenants and acreements
herein contained and then the grantor shall be automatically freed
and relieved from arid after tine date of such conveyance of all obli-
gation and liability in connection with the performance and observance
of such covenants and. agreements.
Section 5.a Discharge from Land Records. The Agency agrees promptly
upon rec,uest oy Redeveloper or its successors and assigns, after
the e;cpiration or termination of this Agreement and the satisfaction
of the covenants and agreements contained herein requi_,ea to be
performed by ?edeveloper, to execute a. termination agreement or
other similar docur,;ent in recordable form that shall serve to release
and discharge the provisions of the Agreement as a .lien or- encumbrance
of the Redevelopment property from the records or Lhe office
the Registrar of !'itles 1 of
, .
la wI'C:•dESS 4iHEz3EOP, the Agency .nas caused this Agreement
to be duly excuctoct i.n its name and behalf and its seal to be hereunto
— duly affixed, and the ,^, edeveloper has caused this Agreement to be
duly executeo. in its nacre and behalf and its corporate seal to be
hereunto duly affixed, on or, as of the date first above written.
-13-
A
(Seal)
STATE Or MINNESOTA
COU_= Or CARVER
)
� SS
1
THE HOUS" G: AEiD RFDFVFLOPi,ic..ST
AUT;iOR1TY 1D, ANTO r O:; TiiF "'TTY
O CHAiHASSEN
ov
_JD
Clifford MaJ tehill, Chairman
Don Ashworth, Executive Director
REDEVELOPED:
I
C j
AL
The �orecoing instru - nc vas ackr oc i.uy:.ci .,. - o ae
aay o� - 168 ov '-li io-a n t ii1_. C.?ai mean,
and by Dori Ashwercn, Lxecuti ✓. Lirector, of cne :fousinR and ,- Redevelop-
ment .authority of the City of Chanhassen, i0innesota.
aotary PUYJliC
STATE OF 1,'1,\kA SOTA )
COUidTY OF
) s s .
'Che forecoing inscrumerrt was acknowledged ;oefcr> r,:e this
da • c
and, o } o� -- -' 15� %, by [e. ce ✓ c Lf�ct� ti
✓ - - - -- re so c t "vely c h 2 �LV rt ems/
and '
of - < t_i -w� > a ;innesota
on its veI ail .
DRAr'TE'D RY:
Grannis, Grannis, Farrell
& Knutson, P.A.
403 Norwest Bank Building
161 :dorth Concord Exchange
South St. Paul, IiM 55075
(612) 455 -1661
— i gut &'v V.blic
-14-
REN J. ENCEL" `)T ^
E*7 ARY P UBLIC . (- JTA
CARVER CC' commlBSbn axG:; es t -10-91 S
EXAMPLE
EXHIBIT "A"
"Minimum Improvements" means 7/!J7 total square footage/
units of
; r •' r
(type -wood, brick, etc.) construction
to the proposed site.
EXAMPLE
EXHIBIT "B"
'..rt
ell
Lot , BlOC�C , �,��n,�,'i /i:r^ `-c�! J.i�Sir!:ySllbdlVlslOn, according
to the plat thereof on file and of record in the office of the
County Recorder, in and for Carver County, Minnesota.
CERTI7TCATICN BY ASSESSOR
Tax Parcel No.25- 19U0180
Street Address 7904 Monter?y Drive
Chanhassen, MN '55317
The undersigned having reviewed the Construction Plans
for the Minimum:, Lmprovements and the Market Value assigned to the
Redevelopment Prozerty upon which the Minimum lm rcvements are to
be constructed D'lrsuant to the azt- mcned; assessment agreement, and
being CL tae oninion that a "Mi nl.mt ri :Market Value" set forte] in
this Cer,tificaLion appears teascnaunie, hereby certifies as
follows:
l
The :I- nders -aned ssessor, ' --; -a lecally responsible nor
the assessment Cr the Redevelopment ProL2rt111 (:C-re particularly
hereDV Cer _ - _: tip. ..L
._ Ge tnat t)'i °_ .T.a r.zez Value assigned to such land (the
Rc.-- ...+ - -..
deve .�
L.T.e1:L Pr.^.Cert_J) and i=rCVe-:en'S (th.".. :'71. ^.1 iL:.il
1 -= _men- , T 11 be not
i- ..�_- :�_ -.a, i:- . Comole ion Of czr.zzrLCtiOn hereon shall
less than Three Hundred Sixteen Thousand Dollars
(S 316, 000. 00 ) �-_ -- Ler ^i:aL -cn cf zne aLLache�
- c ScS ou,CaL dy'rncT�enL.
The undersigned further certifies that the market value
of tae RedevelopmenL Procert,' as or the date CL execution, or
this Certific=ticn is One Hundred Three Thousand Seven Hundrob" ars
(S 103,700.00 )_
For the Nur -uses Of this c°_rtifiCation, the words used
herein, have tae' definitions utilized in the attached Assess.^,.ent
Acree-ent,
� 9
Assessor F the City of Chanhassen.
STATE OF MINNESOTA)
_ ) ss.
COUNTY OF CARVER )
The for going instrument was acknowledged before me this
day of'�o�v� -, 199�_, by
Scott J. Winter the Assessor for the City of
Chanhassen.
/ 1
q5 x!wt g v in....E JOA N.vN .t vHW..E,yCiyK�wN
N&ARYPUBLIC- LITr
A •CN- ro�tr�a/ r-yy > P�u/ b li�c
CARVER COUNTYCount y �
^ My Commission Expires oct 22, 1990 j My Commission Expires:
' ( arsesag
CERT_T TCATTCN BY ASSESSOR
Tax Parcel No.25- 19u0180
Street Address 7904 Monterey Drive
Chanhassen, MN 553J7
The undersigned having reviewed the Construction Plans
for the Minimu_:. Improvements and the market Value assigned to the
Redevelopment Property upon which the Minimum Improvements are to
be constructed pursuant to the aLtacned assessment agreement, and
being Of t. ^.e Opinion that a ";•1i: _:'i;.':1 :•Iar :.ke*_ Value" set forth In
this Certificazz-on appears reascnable, herebv certifies as
follows:
The undersigned _ssessor, pei ^g legally re b e
_ .,or.si 1 _cr
the assessment Cr the RedevelC:mEnt
r,ac e - _._ .. Prce_ r_ t _ '
_
(more parti Cllldrly
---------- _
herep'•J Cer_ :es that the .T.ar}.__ �iai.. ,le assiCAed to such land (the
lC..m
Redevepent Prcpert_) and imDrove:nents (tha Mi ^lmum
I-zrover,enLs) upon cp pietiOn of c;nstruction hereon shall be not
less t`:an 'Three Hundred Sixteen Thousand Dollars
(5316,000.00 ) _--- ter. :at_cn of --ne -
assessment aCrcc 2nL.
The undersigned furl her cer - :_ -es ,at the market Va17e_
of the ReCevelc -meht Property' as o� the Cate CL execurion, or
t:'1_33 Certification is One Hundred Three Thousand Seven Hundretl_ars
(S 103,700.00 ),
FCr the uurpOses Of this c2rzificazzonr the words used
herein have the definitions utilized in the attached Assess. -.lent
AGr EeT:en L.
PMT .�' -• i u /`/ / n/ _
Assessor 'o, the Citty✓�OffChanhassen
STATE OF MINNESOTA)
ss.
COUNTY OF CARVER )
r� The foregoing instrument was acknowledged before me this
— /,_ day of �1�n��-f�_� -� T -9��, by
Scott J. Winter the Assessor for the City of
Chanhassen.
E O HECK
ANNECKLW L Notary I Public
� NOTARY PUBLIC- MINNESOTA
CARVER COUNTY � County:
My COmminiOn ExPIMS Oct. 22. 19W My Ccmmission Expires:
( .wvssob
MEMORANDUM
I+
CITY OF
CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
(612) 937 -1900
TO: Housing and Redevelopment Authority �,/
o
FROM: Todd Gerhardt, Assistant Executive Director R lam,
— DATE: May 12, 1989 ,i
SUBJ: Consideration of Special Assessment Agreement, Paisley
Park /PRN Music Corporation
Attached for the HRA's consideration is a special assessment
agreement for PRN Music Corporation for the development of a
46,150 sq. ft. recording facility. The site is located Lot 11,
Block 1, Chanhassen Lakes Business Park (see Attachment W.
The estimated amount of incentive available totals $768,957.00.
The following calculation represents taxes for the development
for one year.
Minimum Market Value $5,013,000
100,0
4,913,00000
x 5.15%
253,019
3,300
Total Estimated Taxes $ 256,319
The total amount of special assessments against the property is
$87,256.00. In this case, PRN Music Corporation is only looking
for special assessment assistance for the remaining specials
against the property. The HRA could provide a total write -down
of specials.
Total 3 Years Taxes $ 768,957
Special Assessments 87,256
— Remaining Increment $ 681,701
RECOMMENDATION
Staff recommends approval of the Special Assessment Agreement
with PRN Music Corporation and their development of a 46,150 sq.
ft. recording facility. In addition, that PRN Music Corporation
— construct a 2,000 sq. ft. accessory building for their outdoor
storage or eliminate the storage completely.
ATTACHMENTS
1. Location Map.
2.. Special Assessment Agreement.
STATE HIGHWAY ,� ' NJ
O X0398
MOULTRIE
COMPLEX
6
7.02 ACRES
FLUOROWARE
INC.
Cno
CHA
PUBL
ROBERT
ENEBAK LSR
PR(1PFRTIFC 5.01 ACRES
-DUNN PARK COURT
8 ROOS
COMPONENT W
ENGINEERING
INDUSTRIAL
INFORMATION
CONTROLS, INC.
DAY -CO
CONCRETE
COMPANY
LAKES BUSINESS
CENTER
ENERGY
CONTROL
MURPHY INC.
MACHINES
924
2
4.17 ACRES
CHANHASSEN
LAKES BUSINESS
CENTER
CHANHASSEP
LAKES BUSINESc
CENTER II
I
I.
P PvL
200
0
4.64 ACRES
a9�
A
Z373
W
4
6.32 ACRES
Qbg9
503
Q
268
3.95 A3CRES
5a9
PROGRESS MANKIND
TECHNOLOGY CORP.
FLUOROWARE
INC.
Cno
CHA
PUBL
ROBERT
ENEBAK LSR
PR(1PFRTIFC 5.01 ACRES
-DUNN PARK COURT
8 ROOS
COMPONENT W
ENGINEERING
INDUSTRIAL
INFORMATION
CONTROLS, INC.
DAY -CO
CONCRETE
COMPANY
LAKES BUSINESS
CENTER
ENERGY
CONTROL
MURPHY INC.
MACHINES
924
2
4.17 ACRES
CHANHASSEN
LAKES BUSINESS
CENTER
CHANHASSEP
LAKES BUSINESc
CENTER II
I
I.
P PvL
` ASSESSMENT AGREEMENT
CHANHASSEN HRA SPECIAL ASSESSMENT REDUCTION PROGRAM
THIS AGREEMENT, made on or as of the
1989, by and between The Housing and Redevelopment — day
uthority in
and for the City of Chanhassen, a public body corporate and politic
(the "Agency "), established pursuant to Laws of Minnesota 1947,
Chapter 457, as amended, being Minnesota Statutes, Sections 462.411–
(the "Redeveloper "),
462.711 (the "Act "), and PRN Music COrporation
WITNESSETH:
WHEREAS, the Agency was created pursuant to the Act and
was authorized to transact business and exercise its powers by a
resolution of the City Council of the City of Chanhassen tthe "City ,,);
and
WHEREAS, in furtherance of the objectives of the Act, the
Agency 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
kno:qn as the Chanhassen Downtown Redevelopment Project (the "Project ")
in an area (the. "Project Area ,,), located in the City; and
r !VHEREAS, as of the date of this Agreement there has been
prepared and approved by the Agencv and the City a redevelopment
plan for the Project; and
[ 9HEREAS, the Agency request -ed t-he County of Carver (the
County ") to certify the current assessed value of the real property
within the Project Area pursuant to Section 462.585 of the Act thereby
establishing the Project as a tax increment financing district;
and
;VHEREAS, the major objectives of the Redevelopment Plan
are to: acquire for rehabilitation economicaLly or, functionally
obsolete or underutilized buildings a!nd land; provide a redevelopment
site of character that will encourage' future development of the
area and improve sources of public reve
influences ;rhich nue: eliminate blighting
impede potential development ,within the aforementioned
redevelopment project; provide maxi:,um Opportunity for, redevelopment:
by private enterprise, consistent wit-!l the needs oc the City as
a whole; encourage private rehabil,itnti -on of Structures within the
redevelopment project; and
! ^1par,j S, in order to achieve Che objectives of the Redevelopment
Plan and particulcirly Co make th -111(1 in Che Project Area available
for redevelopment by private enr.crpri ;e For and it) accordance with
r the uses specticied in the Redev:,Lop;; nt P1a11 the agency has determined
to provide substantial aid and :[sSisi:ance to the Project through
the sale of bonds to finance: the public coats of the redevelopment
Of the Project. Area; and
01/06/88
t.
WHEREAS, the Agency believes that the redevelopment of a
portion of the Project Area pursuant to this Agreement, and fulfillment
generally of the Agreement, are in the vital and best interests
of the City and the health, safety, morals, and welfare of its resi-
dents, 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; and
WHEREAS, the Agency has concluded agreements for the redevelop-
ment of the various properties to be acquired in furtherance of
the Project; and
WHEREAS, said agreements provide recourse for the Agency
should such redevelopment not be completed; and
WHEREAS, Section 273.76 (Subd. 8) of Minnesota Statutes
empowers the Agency to enter into written assessment agreements
with redevelopers of properties within the Project Area; and
WHEREAS, the Redeveloper will construct certain minimum
improvements upon the Redevelopment Property; and
WHEREAS, the Agency, and the Redeveloper desire to establish
a Minimum Market Value for the Redevelopment Property and the Minimum
Improvements to be constructed thereon pursuant to Minnesota Statutes,
§273.76, Subd. 8, and §462.445, Subd. 4 (1 and 16); and
WHEREAS, the Agency and the Assessor have reviewed the Construc-
tion Plans for the Minimum Improvements; and
WHEREAS, the Assessor, acting pursuant to §273.76, Subd.
8 of Minnesota Statutes, has executea a Certification By Assessor
as to the Redevelopment Property and the Minimum Improvements to
be constructed thereon; and
WHEREAS, the original. copy of said Certification By Assessor,
or a true and correct copy thereof is attached to this Agreement
as Exhibit "C" and made a part hereof:
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 fol.lows:
ARTICLE I. DEFINITIONS.
Section 1.1 Definitions. In this Agreement, unless a different
meaning clearly appears from the context:
"Act" means the Municipal Housing and Redevelopment :Ict,
Minnesota Statutes, Sections 462.411 _t seq., as amended.
"Agency" means the Housing and Redevelopment Authority in
and for the City of Chanhassen.
-2-
f
"Agreement" means this Agreement, as the same may be from
time to time modified, amended, or supplemented.
"Assessment Agreement" means any agreement substantially
similar to this Agreement providing for payment by the Agency of
eligible assessments from the tax increments received by the Agency
in connection with the Project.
"Assessment Reduction Payments" means payments made by the
Authority to either the City or to the County's auditor, as a credit
against eligible assessments, pursuant to Article III of this Agreement
or pursuant to agreements similar to this Agreement with other redevel-
opers of land in the Project Area.
"Assessed Value" or "Assessed Valuation" means the value
of real property as determined by the assessor in accordance with
Minnesota Statutes, Section 273.13 (or as finally adjusted by any
assessor, board of equalization, commissioner of revenue, or any
court) against which the real property tax is imposed.
"Assessor" means the Carver County Assessor or a City Assessor
having the powers of the Carver County Assessor as to properties
— within the Project Area.
"Bonds" means the general obligation bonds or obligations
issued by the City or the Agency to finance the costs of the Project
including but not limited to the Assessment Reduction Payments made
by the Authority pursuant to Modification No. 6 to the Plan.
The term "Bonds" shall also include any general obligation
bonds or obligations issued to refund any Bonds.
"Certification By Assessor" means the Assessor's certification
pursuant to Section 273.76, Subd. 8 of Minnesota Statutes, and Section
3.3 of this Agreement that he has reviewed the Construction Plans
for the Minimum Improvements and the 3larket Value previously assigned
to the Redevelopment Property, and that upon completion of said
Minimum 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.
"City" means the City of Chanhassen.
"Construction Plans" means the pl,.uls, specifications, drawings
and related documents on the construction work to be performed by
the Redeveloper on the Redevelooment Property which (a) shall be
at Least as detailed as the plans, specifications, drawings and
related documents which are submitted Co the building inspector
of the City, and (b) shall include at least the following for each
building; d
(1) site plan; (2) foundation pLan; (3) basement plan
y); (4) floor plan for each floor; (5) cross sections of each
(length and width); (6) elevations (all sides); (7) landscape plan.
-3-
k
"County" means the County of Carver.
"Date of Execution" means the date on :.hich the Redeveloper
signs this Agreement or the date on which the Agency signs this
Agreement, whichever is later.
"Eligible Assessments" means those special assessments pending,
levied, or otherwise for Chanhassen public improvement projects
78 -3, 84 -4, 85 -13, 86 -13, 86 -14, 87 -1, 87 -2, and 87 -9. The term
"Eligible Assessments" does not include anv 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 IV of this Agreement.
"Market Value" or
fair market value of real.
in accordance with minnes�
ad) usted by any assessor,
revenue, or any court)
"Market Valuation" means the estimated
property as determined by the Assessor
')ta Statutes, Section 273.1.1 (or as finally
board of equalization, commissioner of
"i?aturity Date" -ears the date ;;hen the principal. of. premium
(if any), and interest on the bonds are paid in full..
"Minimum Improvements" means those improvements .vhic are
more particularly described on Exhibit "A" attached hereto and made
a part hereof.
"Minimum Narket Value" means iarlcet Value established oursuant
to Section 3.3 of this agreement.
"Modification No. 6" means the sixth amendment to Lh,e Plan
adopted by the Agency amending the program of .assessment Reduction
Payments and the resolution adopting the same.
"Plan" means the Chanhassen Downtown Redevelopment P13n
as described in the "Chanhassen Downtown Redevelopment Project Amended
Plan, February, 1950, ROvi.sed March 10, 1980" booklet, as further
amended from time to time by the Agency.
"Project" means the Chanhassen Downtown Redevelopment Project
as described in the "Chanhassen Downtown Redevelopment ProleCt Amended
Plan, February, 1980, Revised March 'O, 1980" booklet, as further
amended from time to time by the Agency.
-4-
"Project "real, means the real prooert,i Located within the
boundaries of the entire redevelopment district 'as describe; in
Figure t contained in the "Chanhassen Do,;intown RedeveLopmer.. Project
Amended Plan, February, 1980, Revised March 20, 1980" . booklet.
"Real Estate Taxes" means ad valorem taxes on real property
pursuant to Chapter 273 of Minnesota Statutes and not including
any special assessments levied pursuant to Chapter 429 of Minnesota
Statutes. Minnesota
"Redeveloper" means PEN Music Corporation
successors and assigns, or its
"Redevelopment Property" means the real property Which is
more particularly described in Exhibit "S" attached hereto and made
a part hereof.
"Redevelopment Plan" means the Plan.
"State" means the State of Minnesota,
"Substantial Completion" means sufficiently comolete. in
accordance :-jith the Construction Plans for the Minimum Improvements,
so that the Redeveloper (or its successors and assigns) may occupy
the :;ork for the use for which the wlinic,um Improvements are intended.
If the Minimum improvements are to be occupied by one or more tenants
rather than the Redeveloper and no
leases have been entered -_nto
with anv tenants that would serve as the basis for construczinq
and instaLl.ing interior imprnv =menus in
hen "Substantial. Completion" a -nn tiin;mum Imcrove�ents,
small :,e n -:lac tl:e structure co moo
buil.dina systems and utilities are suostanciaLl.y compi,ece so chat
a Certificate of Occupancy may be obcainea by Redeveloper ucon comple-
tion of the construction and instal_ation of normal ana custsnary
interior improvements for 'the benefit of cenarrts occupying space
in the ;Minimum Improvements.
"Tax Official" means any City or Counc
auditor, City, assessor, Co�:nty
y County, or State board of e.qual.ization, 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.
ARTICLE iI. REPRP.SENTATIOPI
AND I•lARRaNTIGS.
Section Representation by the ac - -rl,
fo ll owinq representations as the basic; For the `undertakina on ht,
part herein contained:
(ar) The Agency is n housinct ind redevelopment :1utherety
duty organized and existing under, tho lava of th e State.
(h) The Prnject is a 'redevelesp:nenc proj�;ct" within :he
w't,lnq nt the Act `red was created, adopted and approved in accordance
she germs of t,�e Act.
-5-
t:
(c) Thu Project is a "ta;; incrc.r.. " i
acinoied, cort.ificd and apprn d nu uam-
(d) The Agency has established n, rn• ..: Area taz
i- ncrement district" and has requested char rt" c"unuv auditor of
the County certify the Assessed Valuatinn of al.l :.axab& real orooerty
in the Project Area pursuant to Minnesota statutes, Section 402.5 85.
(e) The activities of the Agency are "r,aorcaken = - 1 .
purnose. of removing, �
g preventing or recluc:;;:r :�l icit'-,
or the causes o - ;;l.i.c.ht�na ctors.
f blight, and for the porn ^,ses or ,,1,_,ninacins or
preventing the development or spread of deterioratea or deteriorating
areas.
(f) To finance the cost of the acti7itics to to
aken
by the Agency, the Agency proposes to ttse proceeds :,_ _. _.c�.
issued either by the � .crc
City or t;e u.crencv and `;; L cr,2 r... _,c:'_
gone aced bV the Project Area co the oa` menn or .hc" ..
and interest on principal o:
the Bonds.
Section 2.2 Renresent_tion
and Warran -,,s ov the The ,edeveioerrepresents
and war ran�_s
W The Reaevelope- Is a
corporation :;;; ,r: -"1„ _:,a
and in via standing under the la•rs of — _
�^ of California _
not 2 La =ion of arrt ornvisions of __ n
or Incor7oracion, as tile casu MOV Do, "r ha !OAS Wo J
�inncsoz2, has -Dower to --n-..r LncO this
- .. - jajj
pro? n. :, - . ...
. ,� J'
; o, The edev- ao:rr pill - consuruaz Zho kinimum
in ac-corcance with 'e.^.len us
local, he terms o th_s ct�._ � t. i. ra �I�1
State rind federal la
`
limited -o, all known oI u'
a envi n teal
u.. n.�inry.
code and pool i c_ .
health laws tnr "cn lays tions are ,matted and enforced tur-i he period
. Wo :tenj
orovements are being constructed, and -
substantially in
the Construction Plans which have beret aPpro,;ed by the ?,venov,
(c) The Winimum impr o omon c;nn _
. i -I;te a punt ,eri 1_ISe
or authorized conditional u50 under i h: 7nninq , ;
City, - r rdt.nanc.c. ,�_ �,
a permitted �.!se under• the flan and ',;,,
(d) Ih:_L at such Pima W 71M1 K v he roquLrod 1. la.a
the Redeveloper will have corpI od with .1
State and federal rnvi- rnrimp Col I,:It not -rlt ��ppl- _ .aL,t Ic�e.tl.,
Obtained .rny And S And . �gr.11ati,nS, ,ill •..eve
I I kno ;n nPlD l ab I n^ ! � nn! ten is l rov c w
or ,- learances as r r � �- - a p,c.�
n t,l� r,eacrvc I ,nmenL !- •v,nc_;
c�; nd th. laz vc Inper
has received no nn; -ice or cor•:m::uca'�t „n t.'.,:;1 . -ulc Ioc:rL,
official �a to or
federal �� that the activities tie of the � -
Itc -i �uevaLnoer t -i �,�inlation
of to or regulation Vkher than -hnr.. .tnr.ices or rnmm
of which the Agency is aware Thc, eu,u.[uicrns
). Rc�uevc�!cipr,r is :n•rzu�e o no fact.,
whe exist.anc e of 'whicn would cause it of
'LOoccol rst" o Te"er :l env rt 1 C ._ .. ,
rocccu. °e or ni c n .o, " at.
onvironmental rights statutes.
% =atr_
- (e) The Redeveloper mill use all reasonable effo to
conszrucc the Minimum lowrovements in accordance with all xisting
local, state or federal energy- conservation laws or reguia'cions.
The Winlmu" Improvements shall be compietad on or bero.re January 1,
988
(=) Tne Rec!evelo„er will obtain, in a timely manner, 1
required permits, licenses and approvals, and will meet, ina timely
manner, all requirements of all local, state
regulations ;which :dust be obtaine arc. the nil laws and
d or. met before the rlinia:u Improve-
. menu may be lawfully constructed.
(g) The Neal estate taxes and any instal'_mencs of special
assessn nts levied against the ;redevelopment Proper--• are not
ceyauic and that Further real estate taxes :;i.17. be raid In
::In e.. cue.
ARTICLE III. ASSFSSi-ENT = D'J=03 PAYMWTS.
Section 3.1 Obliaaticn of
a nc✓ lal.,e P.ssessenc u ti r— °
ecu
�p' n
Payments.
t pun co-n_eon or he 'ini u, !p ore!ents cne - ge ncy, he Increment .ereratec by the o o cr. shall make pavnenis (,n
O n manner ana In the amount WOvided hereinafter) ,n vecuczjou f one eliqlbie assnssmenzs "KIcl Olen imposed
an - evelopmenc
r `. ....1C. which .:e:.. ..-. .. - .
unpaid i:D(, 1 rite date of ec:. -
�.� :..�.: "ten... .._s
its uOlfgarions We Auency,
make ass ile! -eauct o'1s y under this, Agreement s t CO option' �ay
making on lum; sum Payment or by making . e en ; ual
Payments as Ind :Pupil -ns L. l' 'lit b
� - (' L � C llC assessmenzs OeC O::`e
du_ and o ring; to Lhe city,
— make in t,e <t :ant � : ;.at the 'igenec elects to
Said a - 'Ono nc duct o pat;
of semi-annual r`..men s as )nc.vid I -, r -
ir._ t- 1 went, of elioirle ,- issess-
mencs become aue and owing to the
t L c •✓ , We Ac ;ernv shall also paw
the interest imposed ehercon by the city:
but only that portion
in such interest iric.; is attributable to that portion of ;�. `. such
Any hicn the Ann ov , obt �gatca to pay Unve r!
P.ny suck; payma - - . h 'r`.r:ent.
�ncs c: interest she,11 not l)r a credit against the
amount of any assessment reduc'rion payment which tae .t 'ncv s nbLigated
to crake under this Agrvemenc.
In cite caste of Wigi -bW assossrenr.s which have :hen .ticoody
been cerrificc to tar County'_, .udiLar ?(ir collar::
estate Lime's, Saw ans.'s Smont :`r=Ljon Payments, 'oqe :200 vIz
any intoresr_ wnicn the Agency is obligator to pav uracer '-h`s Sectiort
3.1, shaL1 be mail diwoctly to nhc Wunty Auditor it f,11 ..
satisfaction, as the case c; '. >. .:1a1
ay l)e. Oi salt) eligible 2ts sP5 i ;, °I :CS?
t.
in the case _ ` eli_ tle assessments which have nO:, ,ee
been certified to theCoun7v-s aucitar for collection with reai
estate taxes, said ass ecc-a.r re auction ;ayFent5 together :er ':17. L.': .
any interest whicn the Agencv is Obli[cates to pay under this Section
3.1, shall be made to the City's treasurer in full or partial saris-
faction, as the case maybe, 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 Agree-
ment, said assessment reduction payments, together with any interest
which the agency is obligated to pay under this Section 3.1. shall
be made directly to the Redeveloper or its designated successors
and assigns.
Section 3.2 Amount of Assessment Reduction Payment. The amount
of any assessment reauctfen payment mace pursuant to this Agreement
shall not exceed dollars (S )
and shall be computed as the Lesser of the following amounts:
(a) the sum of the principal balance of the eligible assess-
ments 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) 1. where the principal balance of eligible assessments
imposed on -he Redevelopment Property is equal
to or less than 530,000.00 per acre seven percent
(7%) Of the excess Of the Minimum Marxet Value
Of _he Receveiop[:enz Property and the Ainlmum improve-
ments ccnscructea thereon as established pursuant
to Section 3.3 of this greement over the Aarket
value of -he Redevelopment Properly as of the date
Of execution of the Certification By Assessor,
and as certified In said certification: or
2. where the principal balance of eligible assessments
imPosec! on the Redevelopment Property exceeds
530,000.00 per acre, twelve percent (12 %) of the
excess of the Ninimum Narket Value of the Redevelopment
Property and the Minimum Improvements constructed
thereon as established pursuant to Section. 3.3
of this Aoreeraent over the Market Value of the
Redevolonannt. Property as of the date Of execution
of O "1 Cho Certification $y Assessor, and as Certified
" said certification; or
3. at We option of the hRA. Lhe amount equalling
thre; years Of captures+ 'increment venerated as
a result- of the issuance of o buildinr, permit Nhich
can r.(tionallV be shown as the impetus which generated
the captuped Lncrement_. (raptured increment shall
only apply to the parceL which gcneratod such incre-
W
i
vssessmen! pur^oses,
"Olin `. "J
36525 s0(' ila:9 tT °_r ?t "!� i;ine COff,n i'.4., ri'Jn 1, �'- ,_
of oarnois is ' si. r -'�J s, ri croup
. - ^.G -l.e unit. in. suer. ^asp -s,�
one
captured value for the complex: as a whole may be
applied to. and or:ly to. the parcels over
by the complex. JeC
Section 3.3 Construction and Value of <ii :aimu
Red2v� s — Improvements. The
°toper ar,rez to construct (or cause to be constr
the Property ctea) upon
y the Ainimum Improvements cescribed in the attacned
Exhibit 'A' whicl together with existing improvements sha_
an Assessor's of l have
Market t„_lz, as determined by the County Assessor
of Carver County in accordance with applicable law; Of neless
than
dollars (S ) on
The Recev,=7ooer shall
not through (a) tax abatement proceedin s, -
g and /or (b) �n nroce2cing
commenced pursuant to ;Minnesota Statutes, Chapter 273 or'anv similar
law, and /or (c) willful demolition of Minimum Improvements on the
Prcoenry-, and /or (d) any Other means, cause the Assessor'
Value of s 'lather
the Property and the Minimum Improvements, and any other
improvements constructed on the Property, to fall below such amount.
Except as expressly provides Otherwise herein, no provision, of this
Agreement shall restrict the Redeveloper from the construction
additional improvements on the Property, Value
The Minimum 6;ar�cet Value
established in this section shall be of no further `once and erect
and rims Agreement shall terminate on the later of the tr:O following
dates:
(a) the date on which the Bonds are retires. or-
(b) the date On which all assessment reduction payments
due the Redeveloper (or its successors and u_ signs)
pursuant to this Agreement have been made.
Provided, further. that notining in this Agreement stall l
i t the
discretion of the Assessor Oo assign a market value to One redevelopment
Propertv in excess of the =iinimum Warvet Value set forth in this
section.
Section 3.4 Termination of Entitlement
Cn Payment.
any language Notwitnstanding
in this Agreement to the c
on.r
rary. the obligation of
the Agency to make any assessment reduction payment to the Redevoloper•
(or its successors and assir,ns) shall become null and void on
_ , unless the Minimum Cmprovnmencs are in a state of
tia.0 Co,cpletiun as defined ir. Se _uosLan-
( -� Section 1.1) on or before sail
Nevertheless, in the event Nedev;lopor Is t caate.
delayer, in si :bs..a.. :Nally
completing the construction of the Minimum Cmprovements on or bbfore
the date specified herein by reason of labor disputes, sasuaiti-er
acts Or God or the public enemy; crovirrnr,ental embarro restrictions
ShOr taCj�S pT U21, labor or bu11C'.ina ma'torlals, actlOtt Or RC
of public Utilities or of Local. State o P. - -'?Ct LOCI
r federal governmencs affecting
the work, or other causes beyond the reasonable control or _fault
Of Redeveloper, :hen :he uate for substantial compieLion of the
S•E
n
�lr.ve;um ^pre .,eats :all be e,:ter,dcd °or ti:e .;dd_Cio..: i ::.
r _e ^�ttsed
y 'L'C❑ t_,l'CUSdC ::clay. AnV SUcn e,- :ten slon ,esUli:ir:^.
Celav shall no;; _-rV° tG 'Xt�na Z., Ct1'✓e r1:7 �C• .' - _•.�
:•arcet Value or the real estate to ;esL!.evied .jith resc_ � e ...
Ninlmum i.iaclSeL 'value provider'. l07 in ti"11s AcGree:ient. � .. ..._
In the every the t'i:;imu:n I;-provements are not - - --
in S .n t.e
of Substantial Ccsipleti0n on or before the date saec f_ed~ --re-in
or• such e;ctensicn thereof as may result from an e
�' xcusec "- a',�, and
as a result the Agency elects not to make arty_ assessmenzrv. ,,uc- =on
payment in accoraance !alth the terns of this Agree�aent, -
Ayree:nent shall cease and terminate without further obl'_-- -_;n~or
liability on the part of the Agancy or Redeveloper.
ARTICLE: LV. EVE=S OF DEFAULT.
Section 4.1 Events OF Default Defined. The fcllowina shy" be
EVents CS Def aL'1C UCLder t(17 .s = .gfeement and t! e term Ever- of
DeTault'' shall r.,ean, whenever .t is used in 'his e - c_c
Agreement ' ur. � e
the context ocher >.ise provides), anv one or Tore of t ^,e
events (ana Lae te: ^1 ''Celault- shall mean an`.' eV2C!t GJf'_C. ^.
,Ilti1 the passac;e of time cr giving of notice, or boti'l. je - —vent
of Default'r:ereunder):
ar Failure of Redeveloper to i)av wrlen due anv .e= es_ate
to es on the dedevelopc:ent Proy`erty;
(b) caiiure of the 3eaevelopei, 'c0 coe:nlece
prcve:nents on Or be£cl'e t'n date stared
(C) Failure by the Redeveic.�er observe ar:c. er' _ any
covenant, corLdi*_.icrl, o'uiigation or on its cart be
obse.-ved or perfOrmcd he .mutt ier, '.rithin t:;i r ` '30?
da✓s after wcitt r riot ce to the �edeveio- - °c-,,:✓iny
suer: l ai 1L11'e .:ne: t ^(.t Lle., rl Ci het LC be remeaj ea
G r'
447. Li7in sUCa Other iJO rl���'; as otnc',else expressij _.^.rovdeQ
iR tills Agr'ee.:..ant), or' Y.'.1�. _allure --
s _ nature
inCC'able ;.;_chin such '::hi,t -�, 30) days, f _lure by
ti12 :iedcVelOCt'.r t0 UY'Tl'' �. the Agencv sa" " tcry
sh .. iS_ C
assurances that '' - : -Ic Re00veiuper can and will cure such
:allure or failures :ri LL.in r • lscnable tine.
(a) T nc0 F.edeveLc; per L,h al i C: 7 C i.rl wri!:inr; _. - biiity
co pay its debts gorurr.111,✓ tiu•y beco.ie cue. ... all
file a DP tlOn in �)rin'' iD t:f�' Gr `SLla,.i r!la ric' atl SS1CnLICrlt
for Lae .x net IL o-- i is c- 'eci i f ors, or shall consont
to the appoincr..cnt or ec. ,ver of_ itscl
.rholr or ,�r.y :nlbst.uici.tL pru'L of Ct�e r>�adev�•lc ^: -.cnt
r'oprrry .
e) If h reicveLuper ;Ilatl filt• a petition
seekinc reorq.:r.izaCion or arrnngcrnent under the federal
bankruptcy iaar_s.
-10-
Heu eve loper, on A Potiui�n in wnnKr9nz7V yil,d
anj ........ � Kon"UNQ Ir q qzwr7 qf
ccmpozenz jurisoicnion snail wnccr on "rq2r or 7ecrke
3ppointinp, �!Mouc the consent of the K-Woveloper,
& receiver Of tne Hedeveioper or of the Ynole or substan-
tially all Of its property or approve a Peri7ion filec
against -he Redeveio - ner see'kinq reornanizatlan or arrange-
ment of che Redeveloper under the federal barizruntcy
laws, and such adjudication, order or decree snaii
not We vacated or set aside or Fcaved �'.'ithin sixry
�"Gu) cays from the cane of entry thereof.
Section 4.2 Remeaies on Default,
Whenever any Event of Default
rererred to in Section 4.i TFAIs Agreement occurs. the Agency
may make any one or more of the following actions:
(a) Cancel and rescind this Avreemenz.
(t'
k I . izhhold the Certificate of cccu7ancv.
(c) Cancel any pending .assessment Reduction paymencs cue
under the ter7s oz ahis Aqyeeperiv. causing a ncrfairur?
of such payments in favor of the Agency.
idi Take whatever action an law or in eguizy may anoear
•ecessary Or aeslrable to the Agency VO collec7 from
the neaeveloper full reimbursement for any Assessment
Heaucziom Payments Previously race vArsuanz zo his
Agrawmenc.
Nocwizhscanaing Me Prior provisions of Enis Se== 4.2, 1: is
agruea nnac
Of GccuPancy in Agency snail roz cc ""016 � Certificate
nne
cKe event that she Aocncy el.... to cancel and rescind
MIS Agroement Unner clause (a), or KeclevPloper remburses Agency
for any Assassme,, Reduction Payrienno nauc by Agency prior 7o the
occurrenca Of such Event of Default, noqocner with any r2asonanie
emponses incurs by Agency in enforcing Khe provisions of 7A,s
Aqreemenu, or Renoveloper cures any Event of owfauLc , One satisfaculo.1
of Agency and the parties arc rosc,,,d no nhelc Ormar posiaii3n,
under Me provisions of this Agreement.
Sec on 4.3 No Rameav Exclusiva. au remedy rein
or cesorvecl no _1� conver7en apan
� Agency Ls nFeridod to he unclusiv, of ,, • ,r
avaliabla remedy or renedics, buo eacn and evory 1 uuh ZOMPOV MICA
be cumuiacivc anc shall be Ln 00diUL"" kn every Mher "000v q3von
under this Agreement or mow or hnnenCtcr -Nisrino AL Ion or a wnult,'
or by statutes.
ac "pon we delay Or Omission to nnercLse .nv r,nku wr -Otlef,
any "etaula small LmpnIr any suca P405t
sAQii be conscpuew cc be a wa,vwr Uhe eoj, OuL 00% nu
PO•(21- rT:QV oe -'Xe"(--secA froi;i t-,inqo to '�no
deemed engenIcnc. e_ and as Otton as mov 50.
In urger co enkItIc. tM�� "'qCncy �O e%UPC'��
remeuy reserved no in, It n�, IS" 'II)y
L'ii no 5o nccessary LO give notice.
- 1 1 -
he coomen �0 naive
breach herounne. .
_.. rh°_
VC )C i
AdTICLL V, 1_i'JiT-;pl:•.l. 1=- :OtiT' il:.';S
s_cuion 5a Conflict of Tnqarpst: a c r ;
__Co 'eS,^.: Ji ! al �
t _ PL Or lAe snail
nave personal interest, u- . �^- o- inaireci, in -
nor shall any such member, official, or employee participate , icipate 11'.
any c:eclsion relating to This Agreement `:ihic:^ affects his, personal
interests or the interests of any corporation.
> partnersr.:a, or associ-
ation in which he is, direcHy nr interested,
Official. or employee of the Men= shall tie persona
he .:eae.�elcoe_^ or 11.: tc to
an.v suc�-`ss... - -
du.._; _ u ac c' tens or s ...
Pa °en . h_ch m_ become - esn ec'.. o _ion
au- Iu.O: .. ... _.J _ l.liJ
suczlon 5.2
"cou'res the
is Unaers Ccou
or Uelay s'ucn
Duty of Aaencv Lo nc7
anu agreea C "a
approval.
cnc . -Q&Pcv .iii. not ..;nros.sonao_v
cn
Ann
S i' 1 ti _ _ _
ce . _ _. ... -.
.. ..�, _ .., _...._ inc
':.'t
Unoor this Agreemenr jv
c.a�yon
QvOn 00 jellVervo it it L!
on-il ze SCMcienuly i
sail, po> cago PrOWAIM 7CUWn
e l :s LL[ SOn 41 ._v
aCIC
in ...:e _3s_ oL ., -.n.. e "'.�_i,;'`. is r_vw.essis . -w
deliverea nernonal;y 70 .._.. .; 10 1' .
' "" "' c o idilliam H.
F {PnneyT5141ShimsPn Avenue11iinnetonka, MN 55345
in nis case O[ Che .',Qe -.cQr2. SL.'. to
personally to We :\qcn . :C C. a...._`ssan C;77
or :it suck W hur . odross "i c4 .. '
Party may C,'" cAme no .. '` dc"IMAUP n :1!" _in ana .w no
n:'. as j; :"OV I. i:i C: L;1 ..:1 i s :.t .'C ::1.`n .
Sao rr .�011tl .r J:: :'LS 1`. !l i-.
cl ;arcs, .'ucn oL nh .I ...;.1 Cc; u u:. .. Ono „nci ,..e >Ilu:.
_12-
14
say-tion n.n r c 1
n S Rn R7. ihi '!llnn
iJ ..u1S 'ter eel st ;ico
Titles Gild c...._c tu' notion i csrAq .'Y f �- OT
purchaser or encumbrancer 1 , P -_. ..
_pa Jelorr,ent 1 rove. or ��n,/
pdit the!':'OI, :'inc t' "1 °"` VO ��',.•ltar "J�Of involuntary, an= s_.a -„ _ .
stall 1 : ^.P � 1 n!Ar 1'1!7
upon theta. The Redeveloper acrees -o su L - _
"p :...e applicable aver'-
Du.plicate certificate of Title, if an• so as -
of a copy off'
::o permit t:: ^.e recording
it O_` this .agreement ir. ��"12 O`. ice Of the Carver COunty Recorder.
is intented and agreea that the covenants and agreements sec
force in Section 3.3 of this Agreement shall 11 :7e covenants running
with the land art that they s ^ail, in
any event, ant. without regarct
to technical classification aesignaticn. legal or oznep ise.
be bindinc to the fullest extent >ermitced by law ant 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
GS the Repe Vel Oper (including ': titncut limitation any mortgagee_ taking
possession of or title to the Rede Veloomenti Property as a result
OT any default in the terms Of any mortgage to which the RedeVe_lopmen-
T Property is now subject or may de subject
in the future) breaches
any one of the covenants ant agreements sew forth in said Section
7.3, one Agency may treat such breach as an event of Default as
provided in Article P! of this nQreemenc and may exercise any one
or more of the remedies set forth in Section 6.2 of Otis Aareemenn.
Section 5.7 Limitation of Liaoil_ The 8ec:eveleper
and its suede
secs :rr u� t;
OT ownership oc the ,.edevelopment Property shall s-
ce cesponsitie for performing and observing One cOvenano, .... ag: e
se„ lord in this Agreement Only aunina ane time hat J owern��
r , C .epee 10per
Or a successor is the fee title owner of Lee Eeaeveioomenz
In cne cveno ice title to veyedrty.
t• - c'de�e�oomsnc Pr•operc� - emu,- •,veyed
to 0 successor in interest, r•es , t r ee snaii be su.O c lcally esr
cr-
sip e Lor performing inc oosP to We covenants and agreements
_.. herein contained and then We grantor small be automatically freee
and relieveo from and after the dace Of such conveyance of all obli-
gation ana liability in conneco ion pith the ;performance and observance
Of such covenants and agreements-.
Section 5.3 Discharge Prom Lana ^eco _
__—__ -_ .. rcis. The Aucrcy agrees promptly.
upon request py ;;aceveicper o: is successors and assigns. of
-- the e;; 'ter
piratior, or termination o. this
s „gr2er,.cnt and the sai:isfaction
of the covenants and agreements contained hencin rvauivea to be
Performed by aedeveloper, to
P.ceccte ::: termination agreeriianC or
other similar documenr in record_lble form that small serve o
and rc Lease
d7.SCnargO CCIe provisions of the '1C. ee -ant. as L Lieo o[ �
O the Nedeveto r , •-Rof LJ P.Ce
mac it property [: Gtr; nt �"oc r +s GI LI:e ufi S- of
the Regint,rar of titles of Carr.• r Connty, 6 tnnwso C.7.
lull i tT <ES -n llPEPEOc , Cho Agency nas caused this Aor ne!rsrt
its naci,, ,ind beh,rlf and its SeaL to L�� hbreunto
duiv efri
;cute, ar?a the ;edeyv Lo ;er has caused phis n ,-
csmerC to be
du1V exc,'uteu. in _a n.inie .inc! L.=�nlf ttnri LLS
hereunto < F oe
tu_J at�ixet, on up as of the date Ti. st .,hove written.
�r tutee.
-13-
a
fj
-
(Sza.l)
S TF.
Oc .�.sr.;•iorti:, _;�ecu�� -• ✓� .,_: c -c cc:
President
�_, - -:::•.fir _ -a. ._:..
an,. ,r ,;,
c.v =1JD-
_�.y �1 C`,
ST„ TE O ' CALIFORNIA
SJ.
COUNTY oe LOS ANGELES )
5th dati o' M_ aY _ r g9, h,, Prince R. Nelson
anc ;y -- - - - - -_ _ - ,------- PresiTe
aria o PRN Music_ Cor oration
-- P- California
DEIAL: ,
G tar,c:i�, t �.nr,is, r'arrcll
40 3amx c3cilcinq
1;,1 .iOrl., Crnc:orc �:xch.nu;e
OFFICIAL SEAL �X
FRANCINE ROUTMAN
Notary Pub9o-CaAfomia
LOS ANGELES COUNTY
MY Comm. Exp. R 23, 1993
EXAMPLE
EXHIBIT "a"
"Minimum Improvements" means total square footage/
units of (type- vrooa, brick, etc,
to the proposed site. ) c onstruct_on
y
EX A �•lP T-E
LXHT_3!T 'T'
Lot 11 , Block 1 , Chanhassen Lakes Business Park sucdivi lion, according
to the plat thereof on rile and o= moor: in `he effica of _he
Countl Recorder, in and for Carver Counts, :il IInd30 ta.
EXHIBIT C
CERTIFICATION BY ASSESSOR
Tax Parcel No.: 25- 1900110
Street Address: 7301 Audubon Rd.
Chanhassen, MN
The undersigned having reviewed the Construction Plans for
the Minimum Improvements and the Market Value assigned to the
Redevelopment property upon which the Minimum Improvements are to
be constructed pursuant to the attached assessment agreement, and
being of the opinion that a "Minimum Market Value" set forth in
this Certification appears reasonable, hereby certifies as
follows:
— The undersigned Assessor, being legally responsible for the
assessment of the Redevelopment Property (More particularly
described in Exhibit B to the attached assessment agreement)
hereby certifies that the market value assigned to such land (the
Redevelopment Property) and improvements (the Minimum
Improvements) upon completion of construction herein shall be not
less than Four Million Six Hundred Seventy -Five Thousand Dollars
— ($4,675,000.00) until termination of the attached assessment
agreement.
— The undersigned further certifies that the market value of
the Redevelopment Property as of the date of execution of this
certification is Three Hundred Thirty -Eight Thousand Dollars
($332,000.00).
For the purposes of this certification, the words used herein
have the definitions utilized in the attached Assessment
Agreement.
Orlin Schafer, Carver County Assessor
STATE OF MINNESOTA )
ss
COUNTY OF CAREVER )
The foregoing instrument was acknowledged before me this
day of , 19 , by Orlin Schafer, the
— Assessor for the City of Chanhassen.
Notary Public
County:
My Commission Expires:
CHANHASSEN
H.R.A.
A C C O U N T S P A Y A B
L E 04 -10 -89 PAGE 1
CHECK #
A M O U N T
A
C C O U N T S P A Y A B
L E 04 -24 -69 PAGE 1
- 10.00
- CHECV: I
A C 0 U N T
C L A I M A N T
P U R P O S E
CITY OF CHANHASSEN
037644
_,770.27
GRANNIS. GRANNIS,
FEES, SERVICE
FEES, SERVICE
037645
165.00
MERICOR FINANCIAL SVCS.
FEES, SERVICE
3 CHECKS
..
2,935.27
CHECKS WRITTEN
H.R.A.
A M O U N T
A C C O U N T S P A Y q B
C L A I M A N T
:HANHASSEN
H.R.A.
A C C O U N T S P A Y A B
L E 04 -10 -89 PAGE 1
CHECK #
A M O U N T
C L A I M A N T
P U R P O S E
037540
- 10.00
CARVER COUNTY RECORDER
FEES. SERVICE
037541
17.50
CITY OF CHANHASSEN
UTILITIES
037542
30.00
VON KLUG & ASSOC.. INC.
FEES, SERVICE
- 3
57.50
CHECKS WRITTEN
3 CHECKS
TOTAL 57.50
CHANHASSEN
- CHECK #
H.R.A.
A M O U N T
A C C O U N T S P A Y q B
C L A I M A N T
L E 05-OB -89 PAGE 1
P U R P O S E
032377
-
032388
28.000.00
1.000.00
LOTUS REALTY
SOO LINE RAILROAD CO.
LAND-PURCHASE + IMP
LAND - PURCHASE + IMP
2
29.000.00
NECESSARY EXPENDITURES
SINCE LAST COUNCIL MEETING
CHANHASSEN H.R.R. A
C C ❑ LI N T S P A Y A B
L E 05 -08 -B9 PAGE 2
CHECK #
A M O U N T
C L A I M A N T
P U R P O S E
_ 037728
46.57
DONALD ASHWORTH
TRAVEL + TRAINING
037729
1.212.40
BRW, INC.
FEES, SERVICE
- 037730
15,688.81
CARVER COUNTY TREASURER
OTHER ACQUISITION COSTS
AND -SPL ASSESSMENT PAYMENTS
037731
201,881.37
CITY OF CHANHASSEN
SPL ASSESSMENT PAYMENTS
_ 037732
241.60
TODD GERHARDT
TRAVEL + TRAINING
AND-
MILEAGE
037733
1,359.00
HOISINGTON GROUP, INC.
FEES, SERVICE
- 037734
90.00
SIGN SERVICE, INC.
FEES, SERVICE
7
220,521.75
CHECKS WRITTEN
TOTAL OF
9 CHECKS TOTAL 249,521.75
I