3.6. EDSR 11-10-2008ITEM # 3.6.
of
~~ REQUEST FOR ACTION
aver
To Item Number
Economic Develo ment Authori
Agenda Section Meeting Date Prepared by
Consent November 10, 2008 Catherine Mehelich, Director
Economic Develo ment
Item Description Reviewed by
Consider Resolution Approving Assignment of Elk River
B
i
P
k
us
ness
ar
Contract for Redevelopment Reviewed by
Action Requested
The EDA is asked to approve the attached Resolution approving assignment of the Contract for Private
Redevelopment from Associated Investors of Elk River, Inc. to Ann S. Fischer, Trustee of the Ann S.
Fischer Living Trust.
Backg rou nd/Discussion
In 1999 the EDA entered into a Contract for Private Redevelopment with Associated Investors of Elk
River, Inc., Fischer Sand & Aggregate, LLP, and Elk River Business Park, LLC (collectively referred to as
the "Redeveloper") for the purpose of facilitating the redevelopment of the area that is now largely
occupied by Home Depot, Wal-Mart and related retail developments.
Associated Investors of Elk River, Inc. recently submitted a formal request for the EDA's consent to the
assignment of their right, title and interest in the TIF Contract to Ann S. Fischer. The reason for the
request is that the only asset of Associated Investors is the TIF proceeds, and Associated Investors wants
to distribute the proceeds, in 2008, to its sole shareholder. The assignment does not include any rights,
title and interests by the remaining Redeveloper entities, Fischer Sand & Aggregate, LLP and Elk River
Business Park, LLC.
The Contract provides that such transfers or assignments must be approved by the EDA, but that the
EDA must approve them unless it determines that the ability of the Redeveloper to perform its
obligations under the contract will be materially impaired by the assignment. Since the Redeveloper has
completed its obligation under the Contract, the requirements for approval of the assignment have been
met.
Staff therefore recommends approval of the assignment as allowed under the Contract. In addition,
Associated Investors completed all of the improvements on the retail site as required under the Contract.
Completion of the minimum improvements is in process of being completed by Elk River Business Park,
LLC.
Attachments
• Resolution 08-_ Approving the Assignment
S:\FDA\TIF\TIF19\11.10.08 Action Requested F,DA.doc
Action Motion by Second by Vote
Follow Up
S:\EDA\TIF\TIF19\11.10.08 Action Requested EDA.doc
ELK RIVER ECONOMIC DEVELOPMENT AUTHORITY
COUNTY OF SHERBURNE
STATE OF MINNESOTA
RESOLUTION 08-
RESOLUTION APPROVING THE ASSIGNMENT OF ASSOCIATED INVESTORS OF
ELK RIVER, INC.'S RIGHT, TITLE AND INTEREST IN THE CONTRACT FOR
PRIVATE REDEVELOPMENT BY AND BETWEEN THE ECONOMIC
DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF ELK RIVER AND
ASSOCIATED INVESTORS OF ELK RIVER, INC., FISHER SAND AND
AGGREGATE, LLP, AND ELK RIVER BUSINESS PARK, LLC
WHEREAS, the Economic Development Authority in and for the City of Elk River
("EDA") has entered into a Contract for Private Redevelopment ("Contract") by and between the
EDA and Associated Investors of Elk River, Inc., Fisher Sand and Aggregate, LLP, and Elk
River Business Park, LLC (collectively, the "Redeveloper"), dated July 30, 1999; and
WHEREAS, pursuant to Section 7 of the Contract, the right, title and interest in the
Contract of each of the developer entities maybe assigned with approval of the EDA, which
approval will not be unreasonably withheld or delayed; and
WHEREAS, the EDA has received a request that it consent to the assignment of
Associated Investors of Elk River, Inc.'s right, title and interest in the Contract to Ann S. Fisher,
Trustee of the Ann S. Fisher Living Trust u/d/t February 2, 1995; and
WHEREAS, the EDA has determined that the ability of the Redeveloper to perform its
obligations under the Contract will not be materially impaired by the requested assignment;
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Elk
River Economic Development Authority that the assignment of Associated Investors of Elk
River, Inc.'s right, title and interest in the contract to Ann S. Fisher, Trustee of the Ann S. Fisher
Living Trust a/d/t February 2, 1995 is hereby approved.
Dated: November 10, 2008
Patrick Dwyer, President
ATTEST:
Catherine Mehelich, Executive Director
GP:2474182 vl