3.5. HRSR 04-28-2003 Item 11 3 .5 .
• )4.0/
City of
Elk -�-�
River
MEMORANDUM
TO: Housing & Redevelopment Authority
FROM: Catherine Mehelich, Director of Economic Development`s$?
DATE: April 28, 2003
SUBJECT: Consider Amended & Restated Preliminary Redevelopment
Agreement with MetroPlains Development, Inc.
Attachment
• Amended and Restated Preliminary Redevelopment Agreement
• At the March HRA 2003 meeting it was the consensus of the HRA to consider a six-month
extension of the Preliminary Redevelopment Agreement between the HRA and MetroPlains
Development, Inc.
Attorney,Jim O'Meara,has prepared the attached Amended and Restated Preliminary
Redevelopment Agreement for the HRA's action. The agreement extends the period
through November 1, 2003. The extension will allow MetroPlains more time to evaluate
financial feasibility and refine the design concepts, as well as host a public open house.
Typical preliminary redevelopment periods can range from 6 to 24 months.
Staff recommends the HRA consider approval of the Amended and Restated Preliminary
Redevelopment Agreement with MetroPlains Development, Inc.
•
Amended and Restated
Preliminary Redevelopment Agreement
This Amended and Restated Preliminary Redevelopment Agreement (the "Agreement")
is dated as of April 28, 2002; is by and between the Housing and Redevelopment Authority in
and for the City of Elk River,Minnesota(the "HRA"), and MetroPlains Development, LLC, a
Minnesota limited liability company("MetroPlains"); and provides as follows:
1. Recitals.
(a) The HRA and the City of Elk River have been examining the need to
revitalize and redevelop the City's downtown business district.
(b) Pursuant to a recent "request for proposals" process, MetroPlains was
selected by the HRA to work toward conceptualizing, designing and implementing one or
more initial phases of the downtown revitalization project. At the present time, these
initial phases of MetroPlains, should they prove feasible and acceptable in all other
respects, are expected to entail mixed-use development, including residential and retail
components (the "MetroPlains Project") and are expected to occur within but not
necessarily to encompass entirely the shaded areas indicated on the attached Exhibit A
(the "Exclusive Sites").
• (c) The purpose of this Agreement is to provide a basic framework and certain
understandings for examining and possibly implementing the MetroPlains Project. The
HRA and MetroPlains agree to work diligently and in good faith with each other to
realize mutually satisfactory results of the kind envisioned hereby, without committing
either party to a project which it does not find acceptable in its own judgment and
discretion.
2. Terms of Agreement.
(a) The term of this Agreement (the "Term") shall extend through November
1, 2003, upon which date this Agreement shall expire unless extended in writing by the
parties in their sole and absolute discretion, respectively. Upon expiration of this
Agreement, neither party shall have any right or obligation hereunder, except that the
provisions of subparagraph (g) below respecting the use and final accounting of the
$15,000 deposit described therein shall continue to apply in accordance with the terms
thereof.
(b) MetroPlains will proceed with due diligence to examine the feasibility of
and develop, if possible, more specific plans and locations (within the Exclusive Sites)
for the MetroPlains Project. MetroPlains will keep the HRA apprised from time to time
of its progress in developing such plans. As those plans proceed, it is anticipated that the
parties would work in good faith toward drafting a mutually acceptable definitive
redevelopment agreement("Redevelopment Agreement") respecting the terms and
• conditions and other specifics relating to the undertaking and completion of the
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MetroPlains Project, including anticipated tax increment or other financial assistance
• from the HRA, if applicable. The parties recognize that a final Redevelopment
Agreement may involve HRA assistance in the assembly and acquisition of real property
for the MetroPlains Project, including the exercise of eminent domain powers in
accordance with, subject to and as may be permitted by applicable law. During the Term,
the HRA agrees that it will not enter into or negotiate a similar development or
redevelopment agreement with any developer or redeveloper other than MetroPlains for a
project within the Exclusive Site and that it will not agree with any such alternate
developer to provide tax increment or other financial assistance, eminent domain
assistance, or other assistance in connection with any development or redevelopment
undertaken within the Exclusive Area with any party other than MetroPlains.
(c) As the plans of MetroPlains for the MetroPlains Project shall evolve,
MetroPlains shall hold a public meeting and open house to present such plans to the
public and to solicit public input on those plans before any final Redevelopment
Agreement can be finalized.
(d) While the HRA acknowledges that tax increment financing and/or lawful
eminent domain powers may need to be exercised in order to make any MetroPlains -
Project feasible and possible, a final commitment in those areas, as well as any other final
commitments respecting the HRA's role in or assistance to the MetroPlains Project, can
only come if and when a final Redevelopment Agreement is approved and executed by
the HRA's duly authorized representatives, following approval thereof by the HRA Board
• of Commissioners in its sole and absolute discretion. Similarly, the HRA understands
that unless and until MetroPlains executes a final Redevelopment Agreement, it has not
made any final commitment with respect to undertaking or completing the MetroPlains
Project.
(e) It is understood that the plans for the MetroPlains Project must be
submitted in accordance with all City design guidelines and planning and zoning
requirements, subject to such conditional use permits, planned unit developments,
variances and other procedures and processes which may be available pursuant to
applicable local codes. The list of current City development fees which may (or may not)
apply to the MetroPlains Project is attached hereto as Exhibit B. Actual amounts will be
determined at the time of formal application and project approval where applicable.
(0 During the Term, in connection with discussing and attempting to
agree
a final Redevelopment Agreement, the HRA and MetroPlains wil l need to g ree
i
upon final site boundaries for the MetroPlains Project, and the HRA in its discretion will
be examining with the City the appropriate boundaries of any tax increment financing
district or "project area" relative to that tax increment financing district.
(g) MetroPlains has deposited with the HRA $15,000 which may be used to
pay certain expenses incurred by the HRA or the City in reviewing, responding to or
analyzing the MetroPlains Project proposals. These eligible expenses would not include
HRA/City staff time but would include HRA/City legal fees for work on this Agreement
• and the Redevelopment Agreement, financial consulting fees related to analyzing the
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feasibility of the MetroPlains Project or providing tax increment projections, and
• engineering fees related to advising on or examining present public infrastructures in the
downtown area relative to (or respecting future improvements necessitated by) the
MetroPlains Project. When the HRA/City draws against these funds from time to time, it
shall promptly provide MetroPlains with a copy of the actual billing involved. Within 60
days of the end of the Term, the HRA will give MetroPlains a final accounting of this
deposit and will return any funds which are not needed to pay or reimburse for such
eligible expenses. MetroPlains shall not be required to pay more than $15,000 pursuant
to this subparagraph, even if the total of eligible HRA/City expenses exceeds that
amount. The existence of this funding and utilization thereof by the HRA/City shall in no
way compromise the judgment or discretion of the HRA/City as to the acceptability of
the MetroPlains Project or the proposed provisions of a Redevelopment Agreement.
3. Miscellaneous. This Agreement shall be governed by the laws of the State of
Minnesota and may be executed in any number of counterparts, each of which shall constitute an
original hereof and all of which shall constitute one in the same instrument. It is understood and
agreed that MetroPlains may form one or more separate entities to proceed with one or another
of the individual phases of the final MetroPlains Project; similarly, it is understood that aspects
of the final implementation of any Redevelopment Agreements, or any one or more of such
agreements themselves, may in the end be executed in the name of the City. This Agreement
amends and restates that certain Preliminary Redevelopment Agreement, dated as of October 28,
2002, essentially to extend the expiration date in paragraph 2(a) above from May 1, 2003, to
November 1, 2003.
• IN WITNESS WHEREOF, the HRA and MetroPlains have executed this Agreement by
their duly authorized representatives as of the date first above written.
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF ELK RIVER, MINNESOTA
By
Its Board Chair
By
Its Executive Director
METROPLAINS DEVELOPMENT, LLC
By
• Its
1457233v4 3
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• DEVELOPERS AGREEMENT ,"2s/2oG2
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EXHIBIT B
• City of Elk River
Applicable Fees
The following list of fees may or may not apply to your project. This list is not intended to be
all-inclusive but a snapshot of possible fees that should be considered by any applicant.
Park Dedication If land is being platted. Paid at time
of final plat.
Surface Water Management If land is being platted.
Trunk Sewer& Water Fee If land is being platted.
Sewer Availability Charge (SAC) For connection to municipal sewer;
Based on building design.
Water Availability Charge (WAC) For connection to municipal water;
Based on building design.
Building Permit Fees Based on square footage and construction type;
Established by MN State Building Code.
• Based on square footage and construction type;
Plan Check Fees q g
Established by MN State Building Code.
Electric Connection Fees For connection to municipal electric;
Based on percentage of service construction cost.
Streetlight(s) Based on site layout.
•
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