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RES 06-02 EXTRACT OF MINUTES OF MEETING OF THE BOARD OF COMMISSIONERS OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER, MINNESOTA HELD: December 4, 2006 Pursuant to due call and notice thereof, a meeting of the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Elk River, Sherburne County, Minnesota, was duly called and held at the City Hall in said City on Monday, the 4th day of December, 2006, at 5 o'clock p.m. The following commissioners were present: Chair Wilson, Commissioners :Kuester, Lieser, and Motin and the following were absent: • Commissioner Toth Commissioner Motin introduced the following resolution and moved its adoption: RESOLUTION NO. 06_07 AUTHORIZING THE EXECUTION OF A PURCHASE AGREEMENT WITH HOULTON INVESTMENT COMPANY FOR THE PURCHASE OF 716 AND 720 MAIN STREET, ELK RIVER, MINNESOTA AND THE PURCHASE OF THE PROPERTY PURSUANT TO THE TERMS OF SAID PURCHASE AGREEMENT A. WHEREAS, Houlton Investment Company, a Minnesota corporation desires to sell certain real property located in the City of Elk River and commonly referred to as 716 and 720 Main Street, Elk River, Minnesota(the "Property"); and B. WHEREAS, on November 6, 2006 The Housing and Redevelopment Authority in and for the City of Elk River (the "HRA") adopted a redevelopment plan (the "Redevelopment Plan") that provides an outline for the development and redevelopment of the area in which the Property is located; and C:\Documents and Settings\dhuebner\Local Settings\Temporary Internet Files\PCDOCS-#1970418x2-Elk River_Res_Authorizing(3).DOC C. WHEREAS, the City of Elk River's Planning Commission approved the • Redevelopment Plan on November 14, 2006 and the City Council of the City of Elk River, following a public hearing and after making the necessary findings, approved the Redevelopment Plan on November 20, 2006, all in accordance with the requirements of Minnesota Statutes, Sections 469.027 and 469.028; and D. WHEREAS, The HRA has determined that the acquisition of the Property is necessary to carry out the redevelopment project described in the Redevelopment Plan; and E. WHEREAS, the HRA's staff has negotiated a purchase agreement with Houlton Investment Company, a copy of which has been presented to the Commissioners for their review and consideration(the "Purchase Agreement"); and F. WHEREAS, HRA staff is seeking the Board's approval of the Purchase Agreement and authorization for the HRA's Chair and Executive Director to execute the Purchase Agreement and authorization for the HRA's Chair and Executive Director to execute the Contract for Deed and other documents contemplated in the Purchase Agreement or otherwise necessary to close on the purchase of the Property pursuant to the terms of the Purchase Agreement, upon Houlton Investment Company's and the HRA's performance of their obligations under the Purchase Agreement. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Elk River as follows: • 1. The Board of Commissioners hereby approves the purchase of the Property identified in the Purchase Agreement in accordance with the terms of the Purchase Agreement and hereby authorizes the HRA's Chair and Executive Director to execute the Purchase Agreement on behalf of the HRA. 2. If the HRA receives the survey described in Section 9 of the Purchase Agreement prior to the HRA's and Houlton Investment Company's execution of the Purchase Agreement, the Board of Commissioners hereby authorizes the HRA staff to modify the terms of the Purchase Agreement prior to its execution by the HRA Chair and Executive Director to reflect the HRA's acquisition of the survey and to address any title issues the survey discloses and authorizes the HRA's Chair and Executive Director to execute the Purchase Agreement, as modified. 3. The Board of Commissioners hereby authorizes the HRA's Chair and Executive Director to execute the Contract for Deed and other documents contemplated in the Purchase Agreement or otherwise necessary to close on the purchase of the Property pursuant to the terms of the Purchase Agreement, upon Houlton Investment Company's and the HRA's performance of their obligations under the Purchase Agreement. 4. This Resolution does not authorize the HRA to acquire the Property by or through the use of the power of eminent domain or condemnation. The HRA is not authorized to acquire the Property by or through the power of eminent domain or condemnation. • 1970418v1 2 The motion for adoption of the foregoing resolution was duly seconded by Commissioner SLieser and, after full discussion thereof, and upon a vote being taken thereof, the following voted in favor thereof: Chair Wilson, Commissioners Kuester, Lieser, and Motin and the following voted against same: None Adopted this 4th day of December, 2006. �1 x.`. .I ( ' d w ' Chair Attest: Secretary • i 1970418v1 3 STATE OF MINNESOTA COUNTY OF SHERBURNE CITY OF ELK RIVER I, the undersigned,being the duly qualified and acting Secretary of the Housing and Redevelopment Authority in and for the City of Elk River, Minnesota, DO HEREBY CERTIFY that I have carefully compared the attached and foregoing extract of minutes with the original minutes of a meeting of the Board of Commissioners of said Housing and Redevelopment Authority held on the date therein indicated,which are on file and of record in my office, and the same is a full,true and complete transcript therefrom insofar as the same relates to a Resolution Authorizing The Execution of a Purchase Agreement With Houlton Investment Company and a Purchase of Certain Property Pursuant to the Terms of Said Purchase Agreement. 411 WITNESS my hand as such Secretary of the Housing and Redevelopment Authority in and for the City of Elk River, Minnesota this 4th day of December, 2006. Secretary 1970418v1 4 • MEETING OF THE ELK RIVER HOUSING AND REDEVELOPMENT AUTHORITY HELD AT THE ELK RIVER CITY HALL MONDAY, DECEMBER 4, 2006 Members Present: Chair Wilson, Commissioners Kuester,Lieser, and Motin Members Absent: Commissioner Toth Staff Present: Community Development Director Scott Clark,Director of Economic Development Catherine Mehelich,Assistant Director of Economic Development Heidi Steinmetz, and Recording Secretary Jessica Miller Also Present: Future Councilmember Nick Zerwas 1. Call Meeting To Order Pursuant to due call and notice thereof, the meeting of the Elk River Housing and Redevelopment Authority was called to order at 5:00 p.m. by Chair Wilson. 2. Consider December 4,2006 HRA Agenda Discussion on the January 2,2007 HRA meeting was added under other business. • MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER KUESTER TO APPROVE THE DECEMBER 4,2006,HRA AGENDA AS AMENDED. MOTION CARRIED 4-0. 3. Consider Consent Agenda MOVED BY COMMISSIONER LIESER AND SECONDED BY COMMISSIONER KUESTER TO APPROVE THE CONSENT AGENDA AS FOLLOWS: 3.1. NOVEMBER 6,2006 REGULAR MEETING MINUTES 3.2. CHECK REGISTER 3.3. NOVEMBER 2006 REVENUE/EXPENDITURE REPORT 3.4. NOVEMBER 2006 BALANCE SHEET MOTION CARRIED 4-0. 4. Open Mike There was no one present for open mike. 5. Downtown Revitalization Project Update • Director of Economic Development Catherine Mehelich provided an update on the downtown revitalization project. Ms. Mehelich stated that construction on the River's Edge Housing&Redevelopment Authority Page 2 December 4,2006 • park is continuing,as is construction on the necessary underground work for the Jackson parking ramp. She noted that the Bank of Elk River parking lot paving is complete. Ms.Mehelich explained that staff is discussing snow removal and storage with the downtown contractors. She stated that staff will also be discussing this issue at the next River's Edge meeting. Ms. Mehelich indicated that staff has received two inquiries on the new downtown loan program. Assistant Director of Economic Development Heidi Steinmetz distributed the downtown revitalization vision publication. She stated that the purpose of the vision piece is to show the public a vision of what the downtown revitalization project will look like once it's completed. Ms. Steinmetz indicated that the vision publication will be distributed in the Star News and was also distributed to downtown businesses for distribution during the Holiday Open House. Commissioner Motin questioned if the crane for the Jackson Block project will be contained within the building so it does not interfere with traffic flow on Jackson. Community Development Director Scott Clark indicated that staff has been advised that Flannery Construction may request that Jackson Avenue go back to the original requested configuration design. Chair Wilson questioned how long the original configuration would be maintained. Mr. Clark stated that Flannery will be requesting the road be rerouted for four weeks. • 6. Consider Approval of Purchase Agreement Ms. Mehelich indicated that staff is requesting final HRA consideration on the acquisition of the properties located at 716 and 720 Main Street from Houlton Investment Company. Ms. Mehelich outlined the terms of the purchase agreement as follows: • Purchase Price: $720,000 with a down payment of$216,000 • 5-year contract for deed at 6%interest, semi annual payments with prepayment being allowed without penalty • Closing date of December 22,2006 • HRA to assume the lease with O'Reilly Automotive at 720 Main Street and the lease established with First National Financial Services at 716 Main Street • Condemnation and relocation are specifically not being authorized • Provides for the amendment of the purchase agreement,if necessary, following receipt of completed survey and title review • Rather than prorating rents and real estate taxes to the date of closing,the agreement provides for the sake of simplicity to make the proration date for rent and real estate taxes January 1,2007 Chair Wilson questioned the lease conditions with O'Reilly Automotive. Ms. Mehelich indicated that there has been no change in the structure of the payments. She noted that staff understands from the corporate offices that they are in the process of looking for a free standing location that better fits their corporate business model. • Ms. Mehelich explained that the city's condemnation and relocation attorney suggested that wording regarding condemnation and relocation be included as part of the purchase agreement so there is no confusion in the future with the seller. Housing&Redevelopment Authority Page 3 December 4,2006 • MOVED BY COMMISSIONER MOTIN AND SECONDED BY COMMISSIONER LIESER TO ADOPT RESOLUTION 06-02 AUTHORIZING THE EXECUTION OF A PURCHASE AGREEMENT WITH HOULTON INVESTMENT COMPANY FOR THE PURCHASE OF 716 AND 720 MAIN STREET, ELK RIVER, MINNESOTA AND THE PURCHASE OF THE PROPERTY PURSUANT TO THE TERMS OF SAID PURCHASE AGREEMENT. MOTION CARRIED 4-0. 7. Other Business Discussion took place regarding whether or not there would be a quorum for the January 2, 2007 HRA meeting.All members present indicated they would be available for the meeting so it will remain as scheduled. 8. Adjournment There being no other business, Chair Wilson adjourned the meeting. The meeting of the Elk River Housing and Redevelopment Authority adjourned at 5:23 p.m. Aita • vir Jessica Miller Recording Secretary 111