9.0. EDSR 10-14-1996 ITEM 9
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
• October 10, 1996 EDA Report 96-2
AMENDMENT TO REDEVELOPMENT AGREEMENT BETWEEN EDA
AND ANOKA MEDICAL PROPERTIES
Proposed Action
Staff recommends adoption of the following motion: Move to approve amendment
to redevelopment agreement between City of Elk River Economic Development
Authority and Anoka Medical Properties and MedCenters Managed Care, Inc.
With approval of this action,Anoka Medical Properties will proceed to close on
the sale of their building to MedCenters Managed Care, Inc.
Overview
A redevelopment agreement was executed in March, 1990, between the City of
Elk River EDA and Anoka Medical Properties.
Such redevelopment agreement allows the EDA the authority to approve any
transfer of the property or change in ownership of the property throughout the
ioterm of the tax increment district or until the bonds are paid in full on the
project.
Anoka Medical Properties is at this time requesting the EDA approve the sale of
their property most commonly referred to as Mork Clinic, to MedCenters
Managed Care, Inc.
Primary Issues to Consider
0 Will there be any changes in the effect of the redevelopment
agreement or tax increment district due to this sale?
MedCenters Managed Care, Inc. agrees within the amendment that it will
perform all of the obligations and responsibilities of Anoka Medical
Partnership under such redevelopment agreement upon approval of the
amendment and closing on the sale of the property.
Supporting Documents
0 Draft amendment to redevelopment agreement.
• Paul T. ;teinman, Director of Economic Development
eda\meetings\rpt96-2.doc
13065 Orono Parkway• P. O. Box 490 • Elk River, MN 55330-1743 • (612) 441-7420 • Fax (612) 441-7425
Equal Opportunity Housing and Equal Opportunity Employment
AMENDMENT TO REDEVELOPMENT AGREEMENT
•
This AMENDMENT TO REDEVELOPMENT AGREEMENT is entered into as of
the day of October, 1996 by and among the CITY OF ELK RIVER ECONOMIC
DEVELOPMENT AUTHORITY ("EDA"), ANOKA MEDICAL PROPERTIES ("AMP")
and MEDCENTERS MANAGED CARE, INC. ("MedCenters").
RECITALS
A. EDA and AMP entered into that certain Redevelopment Agreement dated
March 23, 1990 pertaining to real property located in Elk River, Minnesota legally described
on attached Exhibit A (the "Redevelopment Agreement").
B. Section 8.3 of the Redevelopment Agreement provides that AMP shall not
make or create or suffer to be made or created any total or partial sale of the Redevelopment
Property without the prior written approval of EDA.
C. AMP and MedCenters have entered into a purchase agreement wherein AMP
has agreed to convey the Redevelopment Property to MedCenters.
D. EDA is willing to consent to the conveyance of the Redevelopment Property
• from AMP to MedCenters pursuant to the terms and conditions contained herein.
AGREEMENT
NOW, THEREFORE, for One Dollar and other good and valuable consideration, the
receipt and sufficient of which are hereby acknowledged, the parties agree as follows:
1. EDA hereby consents to the conveyance of the Redevelopment Property from
AMP to MedCenters.
2. EDA hereby acknowledges that MedCenters satisfies the qualifications and
financial responsibilities necessary and adequate to fulfill the obligations of AMP as required
pursuant to Section 8.3 of the Redevelopment Agreement.
3. EDA further acknowledges that AMP has complied with all of the obligations
and responsibilities required of AMP under the Redevelopment Agreement as of the date
hereof.
- 1 -
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4. MedCenters hereby assumes and agrees topperform all of the obligations and
responsibilities of AMP under the Redevelopment Agreement accruing after the date. hereof.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date
and year first above written.
CITY OF ELK RIVER ECONOMIC
DEVELOPMENT AUTHORITY
By: .
Its:
ANOKA MEDICAL PROPERTIES
• By•Its:
MEDCENTLRS MANAGED CARE, INC.
By:
Its:
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
October, 1996, by , the of
the City of Elk River Economic Development Authority, a , on behalf
of the
Notary Public
• 2
•
STATE OF MINNESOTA )
) ss.
COUNTY OF
The foregoing instrument was acknowledged before me this _ day of
October, 1996, by , the of
Anoka Medical Properties, a Minnesota partnership. on behalf of the partnership.
Notary Public
STATE OF MINNESOTA )
) as.
COUNTY OF )
The foregoing instrument was acknowledged before me this _day of October,
1996, by , the of
• MedCenters Managed Care, Inc., a Minnesota corporation, nn behalf of the corporation.
Notary Public
THIS AGREEMENT WAS DRAFTED BY:
Fredrikson & Byron (CJD)
1100 International Centre
900 Second Avenue South
Minneapolis, Minnesota 55402
584936/100496
• 3
EXHIBIT B
Form of Certificate of Completion
The undersigned hereby certifies that Anoka Medical Properties
has fully and completely complied with its obligations under
Article II of that document entitled "Redevelopment Agreement",
dated as of March , 1990, between the City of Elk River Economic
Development Authority (the Authority) and Anoka Medical Properties ,
with respect to construction of the Improvements in accordance with
the approved construction
and
constructreleased
undorand
such discharged from its obligations to
above-
referenced Article.
Dated:
ELK RIVER ECONOMIC DEVELOPMENT
AUTHORITY
By: •
Its: Executive Director
•
•
B-1.
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