4.5. HRSR 10-05-2020 Request for Action
Cir•ci
Elk -
River=
To Item Number
Housing and Redevelo ment Authority 4.5
Agenda Section Meeting Date Prepared by
Consent October 5, 2020 Amanda Othoudt,EDD
Item Description Reviewed by
Amendment to the Preliminary Development Cal Portner, City Administrator
Agreement with Modern Construction of Reviewed by
Minnesota, Inc.
Action Requested
Approve,by motion,an amendment to the Preliminary Development Agreement with Modern Construction of
Minnesota, Inc.
Background/Discussion
On October 7,2019, the HRA and the Council entered into a preliminary development agreement with Modern
Construction. The agreement allows the developer to explore the idea of a multi-family,mixed-use development
concept in downtown Elk River. The HRA is listed as a party to the agreement, since the HRA owns some of the
property.
At their September 21, 2020, meeting, the City Council approved Jesse Hartung's request for an extension of his
agreement with the city to allow him time to further develop his plans for downtown redevelopment. A joint
meeting with the HRA and the Council will be scheduled on January 4, 2021.
Financial Impact
N/A
Mission/Policy/Goal
Mississippi Connections Plan—Mid-term goals: City partnering with property owners and the development
community to implement redevelopment projects that meet the community vision. Continue to assist in the
recruitment of highly desirable businesses to the core downtown (e.g. hotel, fine dining,banquet facility).
Mississippi Connections Plan—On-going goals: Based on demand,work with property owners and development
community on redevelopment proposals.
Attachments
■ Executed Preliminary Development Agreement
■ First and Second Amendment to Preliminary Development Agreement
■ Third Amendment to the Preliminary Development Agreement
The Elk River Vision P I I E R E I I Y
A welcoming community avith revolutionary and spirited resourcefulness, exceptional [NAfUR
service, and community engagement that encourages and inspires prosperity. Updated.August 2020
President
THIRD AMENDMENT TO PRELIMINARY DEVELOPMENT AGREEMENT
This Third Amendment dated October 5, 2020 (the "Third Amendment"), to that Preliminary
Development Agreement dated as of October 7, 2019 by and between the City of Elk River, a
Minnesota municipal corporation(the"City"),the Housing and Redevelopment Authority of the City
of Elk River, a public body corporate and politic under the laws of the State of Minnesota (the
"Authority"), and Modern Construction of Minnesota, Inc., a Minnesota corporation (the
"Developer").
WHEREAS, on January 16,2020,the parties entered into a First Amendment to Preliminary
Development Agreement (the "First Amendment");and
WHEREAS, the First Amendment extended the deadline in which the Developer had to
submit its proposal and extended the term of the Agreement;and
WHEREAS, on April 29,2020,the parties entered into a Second Amendment to Preliminary
Development Agreement to extend the deadline in which the Developer had to submit its proposal
and extended the term of the Agreement (the "Second Amendment"); and
WHEREAS, the parties wish to further extend these deadlines; and
NOW, THEREFORE, the parties agree as follows:
The Preliminary Development Agreement is hereby amended as follows:
1. The first paragraph of Section 3 is amended to read as follows. The remainder of Section 3
(paragraphs (a) through (n) shall remain unchanged.
Section 3. Developer's Obligations. On January 4, 2020, the Developer must submit a
proposal to the City and the Authority, which proposal must provide the following
information:
2. The first paragraph of Section 8 is amended to read as follows. The remainder of Section 8 shall
remain unchanged.
Section 8. Term of Agreement. This Agreement is effective until January 4, 2021. After
such date, neither party shall have any obligation hereunder except as expressly set forth to
the contrary herein.
3. Except as amended by this Third Amendment, all other terms of the Preliminary Development
Agreement shall remain in full force and effect.
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IN WITNESS WHEREOF,the parties to this Third Amendment have cause this document to be duly
executed as of the day and year first above written.
MODERN CONSTRUCTION OF
MINNESOTA, INC.
By
Its:
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HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF ELK RIVER
By:
Its: Chair
By:
Its: Executive Director
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CITY OF ELK RIVER
By:
Its: Mayor
By:
Its: City Clerk
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