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HomeMy WebLinkAboutEDA - November 7, 2012C T Y O F 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.AN DOVE RMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING Wednesday, November 7, 2012 6:00 p.m. Conference Rooms A & B 1. Call to Order— 6:00 p.m. 2. Approval of Minutes (October 16, 2012 Regular) 3. Approve LMCIT Liability Coverage 4. Approve Land Purchase Agreement/Mardot Properties /PID #33- 32 -24 -13 -0046 - Administration 5. Andover Community Center/YMCA Financing Discussion 6. Parkside at Andover Station Update (verbal) 7. EDA Activity - Project Status Update (verbal) 8. Other Business 9. Adjournment - '1 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 . (763) 755 -5100 FAX (763) 755 -8923 • WWW.ANDOVERMN.GOV TO: Economic Development Authority CC: Jim Dickinson, City Administrator FROM: Michelle Hartner, Deputy City Clerk SUBJECT: Approval of Minutes DATE: November 7, 2012 INTRODUCTION The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: October 16, 2012 Regular DISCUSSION The minutes are attached for your review. ACTION REQUIRED The EDA is requested to approve the above minutes. Respectfully submitted, An Michelle Hartner Deputy City Clerk Attach: Minutes 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 ANDOVER ECONOMIC DEVELOPMENT AUTHORITYMEETING OCTOBER 16, 2012 -MINUTES A meeting of the Andover Economic Development Authoritywas called to order by President Mike ,vN Gamache, October 16,2012,6:00 p.m., at the Andover City Hall Crosstown Boulevard NW, Andover, Minnesota. Present: Commissioners Sheri Bukkila (arrived at 6:06 pm), Tony Howard, Mike Knight, Julie'Trude and Joyce Twistol_ Absent: Commissioner Robert Nowak Also present: Community Development Director, David Carlberg Executive Director, Jim Dickinson Public Works Director /City Engineer, Dave Berkowitz Others September 18, 2012, Closed Meeting: Correct as presented. Motion by Trude, Seconded by Howard, approval of the Minutes as presented. Motion carried unanimously. PARKSIDEATANDOVER STATION UPDATE Mr. Carlberg stated four lots have been purchased to date by Capstone Homes. Two of the lots have model homes on them and the other two lots the homes are under construction. He indicated Capstone Homes could possibly purchase another 3 to 4 lots this fall. Capstone Homes is ahead of schedule regarding the lot take down agreement. Mr. Berkowitz stated the construction activity for this project is moving forward on the grading and the moving of utilities. He expects the project to be complete within 3 -4 weeks. Mr. Carlberg indicated a purchase agreement was presented to Cherrywood Advanced Living on Andover Economic Development Authority Meeting Minutes — October 16, 2012 Page 2 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 October 4, 2012. Staff is waiting for a response from Cherrywood Advanced Living. BUNKERICROSSTOWNREDEVELOPMENT DISCUSSION Mr. Dickinson indicated direction from the EDA was to proceed on the property located on Crosstown Drive. A purchase agreement has been presented and staff has been working through some environmental details with the property owner's legal counsel. EDA ACTIVITY— PROJECT STATUS UPDATE Mr. Carlberg updated on the following: 2012 Special EDA Events — The 2012 concert events were not that successful. Mr. Carlberg indicated he is looking for direction from the EDA for the 2013 events. He received no feedback from the businesses and they have chosen not to partner with the City for the events. Commissioner Trade suggested exploring a partnership with the strip malls by City Hall. President Gamache indicated the school bands had well attended events. He suggested talking to the Middle and High Schools regarding their interest in participating in the events for 2013. He also suggested talking to the school theatre groups about an event. Mr. Carlberg asked about a venue for the events. Mr. Dickinson indicated an area by the Community Center and Sunshine Park has been used for previous Music In The Park events. Commissioner Twistol stated the EDA gave it a good try, but it may be time to move on to something else. Commissioner Trade suggested brain storming for other events. Mr. Carlberg indicated he will contact the schools for feedback and bring the information back to a future meeting. 2013 Andover Business Development Day — Wednesday, June 19, 2013 is the date set for the event at Rum River Hills Golf Club in Ramsey. Rum River indicated they can meet all the requests including leasing round tables for the banquet. There will be a dinner/banquet only option for those that do not golf. Retail Market Analysis — The retail study is on the City's website. Staff is putting together a summary of the study that will also be available on the website. Monument/Entrance Signs — The message board on Crosstown/Bunker is now working correctly. There had been a panel out for the last few weeks. Additional LED lights will be added to the box. Staff is waiting for a proposal from Demars Signs to change the box to just the City logo. Andover Economic Development Authority Meeting Minutes — October 16, 2012 Page 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Commissioner Knight asked about landscaping around the sign. Commissioner Trade indicated the plan was to keep the sign area maintenance free. Mr. Carlberg stated he had talked to Mr. Kytonen, Natural Resource Technician about adding some low level shrubs. The EDA agreed to look at some low maintenance landscaping. Mr. Carlberg indicated the support structure is complete for the entrance sign on Round Lake Boulevard and the sign to be installed this week. The entrance sign located on the east end of Bunker Lake Boulevard should be installed late October early November. Commissioner Twistol suggested using a white background on the signs instead of beige. Commissioner Trade stated there were three colors to choose from for the signs, white, ivory and beige. Commissioner Bukkila suggested seeing the colors to choose from again. Commissioner Trade asked about the lighting for the entrance signs. Mr. Carlberg indicated lights were not a part of the current plan for the entrance signs. He stated electrical is something that could be added later. There would be an additional cost for the electrical. Mr. Carlberg stated he will bring the lighting cost proposal to a future meeting. OTHER BUSINESS Mr. Dickinson stated the EDA will only need to meet once a month in the upcoming months. The meetings will primarily be held on the 3r d Tuesday of the month. ADJOURNMENT Motion by Knight, Seconded by Bukkila to adjourn. Motion carried unanimously. The meeting adjourned at 6:37 p.m. Respectfully submitted, Michelle Hartner, Recording Secretary C I T Y O F 3. N 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 . (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: President and EDA Commission Members FROM: Jim Dickinson, Executive Director SUBJECT: Approve LMCIT Liability Coverage - EDA DATE: November 7, 2012 INTRODUCTION The League of Minnesota Cities Insurance Trust (LMCIT) requests that participating EDA's annually decide whether or not to waive the statutory tort liability limits established by Minnesota Statutes 466.04. DISCUSSION Attached is the "LMCIT Liability Coverage — Waiver Form" provided by the LMCIT, which provides a description of the options available to the City of Andover EDA. Currently the City of Andover EDA DOES NOT WAIVE the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. I am recommending continuing with the past practice. BUDGETIMPACT No budget impact if the EDA does not waive limits. ACTION REQUESTED The City of Andover EDA is requested to not waive the monetary limits on tort liability established by Minnesota Statutes 466.04. submitted, Jim SECTION I: LIABILITY COVERAGE WAIVER FORM Cities obtaining liability coverage from the League of Minnesota Cities Insurance Trust must decide whether or not to waive the statutory tort liability limits to the extent of the coverage purchased. The decision to waive or not to waive the statutory limits has the following effects: If the city does not waive the statutory tort limits, an individual claimant would be able to recover no more than $500,000. on any claim to which the statutory tort limits apply. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would be limited to $1,500,000. These statutory tort limits would apply regardless of whether or not the city purchases the optional excess liability coverage. If the city waives the statutory tort limits and does not purchase excess liability coverage, a single claimant could potentially recover up to $1,500,000. on a single occurrence. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to $1,500,000., regardless of the number of claimants. If the city waives the statutory tort limits and purchases excess liability coverage, a single claimant could potentially recover an amount up to the limit of the coverage purchased. The total which all claimants would be able to recover for a single occurrence to which the statutory tort limits apply would also be limited to the amount of coverage purchased, regardless of the number of claimants. Claims to which the statutory municipal tort limits do not apply are not affected by this decision. This decision must be made by the city council. Cities purchasing coverage must complete and return this form to LMCIT before the effective date of the coverage. For further information, contact LMCIT. You may also wish to discuss these issues with your city attorney. accepts liability coverage limits of Minnesota Cities Insurance Trust (LMCIT). from the League of Check one: ❑ The city DOES NOT WAIVE the monetary limits on municipal tort liability established by Minnesota Statutes 466.04. ❑ The city WAIVES the monetary limits on tort liability established by Minnesota Statutes 466.04, to the extent of the limits of the liability coverage obtained from LMCIT. Date of city council meeting Signature Position Return this completed form to LMCIT, 145 University Ave. W., St. Paul, MN. 55103 -2044 • �. T 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: FROM: SUBJECT: President and Commissioners Jim Dickinson, Executive Director Approve Land Purchase Agreement/Mardot Properties/PID#33- 32 -24 -13 -0046 DATE: November 7, 2012 INTRODUCTION D This item is in regards to approving a real estate purchase agreement. The property is located at 13725 Crosstown Drive NW in the City of Andover, County of Anoka, State of Minnesota, PID#33- 32- 24 -13- 0046, "Property "). The property is currently owned by Mardot Properties, LLC (Seller). DISCUSSION The Andover Economic Development Authority (Buyer) has offered to pay $430,000 (Four Hundred Thirty Thousand and 00 /100 dollars) for the Property. The Executive Director and the City Attorney have worked with the Seller's legal counsel and have a negotiated purchase agreement. The Andover Economic Development Authority (AEDA) offer is a cash offer and is to be closed by December 31, 2012 with the following contingencies and terms: 1. Property Owner shall pay on date of closing all special assessments levied or pending against the property as of the date of closing. 2. Property Owner shall pay all current and delinquent real estate taxes due at date of closing. In and current year of closing taxes shall be prorated. 3. Property Owner will allow right of entry allowing AEDA the ability to fully inspect the property. 4. Property Owner will provide or assist in acquiring the following disclosures: a. Individual sewage treatment system(s) b. Well and fuel tanks c. Environmental contamination. d. MPCA & EPA Compliance Reports 5. Seller shall permit Buyer, at Buyer's expense, to enter the Property to conduct investigations and testing and Buyer shall be completely satisfied that the level of soil contamination is not beyond that level identified in the No Further Action Letter from the Minnesota Pollution Control Agency, dated October 27, 1999 relative to Site ID# Leak00006461, and that a Phase I, conducted at Buyer's expense, does not reveal any contamination not identified in the aforementioned MPCA case. 6. Buyer shall have determined that roads, easements, driveways, utilities, points of access and other infrastructure serving the Property will be adequate for Buyer's purposes, as determined by Buyer in Buyer's sole discretion. 7. Buyer shall have obtained all zoning, land use, signage, watershed, environmental and other governmental approvals and permits Buyer shall deem necessary to use the Property in the manner contemplated by Buyer. 8. Buyer shall have obtained all watershed, environmental and other governmental approvals and permits (excluding any such approvals and permits as Buyer itself may grant) that Buyer shall deem necessary to use the Property in the manner contemplated by Buyer by December 31, 2012. 9. Buyer, on or before the date of closing, shall have received, reviewed and determined that it is satisfied with the matters disclosed by the survey of the Property. 10. Seller shall be able to provide on the date of closing, a clean title to the Property free of liens, judgments, leases and mortgages. 11. Upon execution of a Purchase Agreement, Seller shall serve notice upon the tenants currently occupying the Property, effectively terminating any and all interest said tenants may have in the Property effective on or before the date of closing, providing sufficient proof of said notice to Buyer. In the event Seller is unable to terminate said tenants' interest in the Property prior to any mutually agreed upon date of closing, said date of closing may be rescheduled to a date no later than March 14, 2013 upon the mutual agreement of the parties. ACTION REOUSTED The Andover Economic Development Authority is requested to approve the attached Purchase Agreement. submitted, Purchase Agreement PURCHASE AGREENIENT 1. PARTIES. This Purchase Agreement is made on October 012 by and between Mardot Properties, a Minnesota Limited Liability company, with its principal place of business located at 9020 West Topeka Drive, Peoria, AZ 85382 -8595 (hereinafter referred to as "Seller ") and the Andover Economic Development Authority, a body corporate and politic, 1685 Crosstown Boulevard, N.W., Andover, MN 55304, (hereinafter "Buyer"). 2. OFFER/ACCEPTANCE. Buyer agrees to purchase and Seller agrees to sell real property located in the City of Andover, County of Anoka, State of Minnesota, with PID # 33- 32-24-13- 0046 and legally described as follows: See Exhibit A attached hereto (hereinafter "Property"), 3. PRICE AitiD TEMMS. The price for the Property included in this sale: Four Hundred Thirty Thousand and 00 /100 Dollars ($430,000.00) which Buyer shall pay as follows: Earnest money of Ten Thousand and 00 /100 Dollars ($10,000.00) by check, receipt of which is hereby acknowledged, and Four Hundred Twenty Thousand and 00 /100 Dollars ($420,000.00) in cash or other immediately available funds after a reasonable time for Buyer to examine title as set forth in Section 13 of this Agreement, and on a date mutually agreed upon between the parties, hereinafter referred to as ("DATE OF CLOSING'. 4. CONTINGENCIES. Buyer's and Seller's obligations under this Purchase Agreement are contingent upon the following: (a) Seller shall permit Buyer, at Buyer's expense, to enter the Property to conduct investigations and testing and Buyer shall be completely satisfied that the level of soil contamination is not beyond that level identified in the No Further Action Letter from the Minnesota Pollution Control Agency, dated October 27, 1999 relative to Site ID# Leak00006461, and that a Phase I, conducted at Buyer's expense, does not reveal any contamination not identified in the aforementioned NTCA case. (b) Buyer shall have determined that roads, easements, driveways, utilities, Points of access and other infrastructure serving the Property will be adequate for Buyer's purposes, as determined by Buyer in Buyer's sole discretion. (c) Prior to the DATE OF CLOSING, Buyer shall have obtained all zoning, land use, signage, watershed, environmental and other governmental approvals and permits Buyer shall deem necessary to use the Property in the manner contemplated by Buyer. (d) Buyer, on or before the DATE OF CLOSING, shall have received, reviewed and determined that it is satisfied with the matters disclosed by the survey of the Property. (e) The representations and warranties made by Seller in Section 10 shall be correct as of the DATE OF CLOSING with the same force and effect as if such representations were made at such time. (f) Seller shall be able to provide on the DATE OF CLOSING, a clean title to the Property free of liens, judgments, leases and mortgages. In the event any of the above contingencies have not been satisfied or waived by the party benefitted by said contingency on or before the DATE OF CLOSING, this Agreement shall be voidable at the option of said benefitted party. 5. DEEDINIA U TABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a Warranty Deed conveying marketable title, subject to: A. Building and zoning laws, ordinances, state and federal regulations; B. Reservation of any mineral rights by the State of Minnesota; C. Utility and drainage easements which do not interfere with Buyer's intended use of the property; D. Other matters disclosed by the Title Commitment and not objected to by Buyer. b. REAL ESTATE TAXES AND SPECIAL ASSESSMENTS. Real estate taxes due and payable in and for the year of closing shall be prorated between Seller and Buyer on a calendar year basis to the actual DATE OF CLOSING. Seller shall pay on the DATE OF CLOSING all special assessments for street, storm sewer, sanitary sewer, water main and water area charges and server area charges and any and all other special assessments against the Property levied and pending as of the date of closing. Seller shall pay on or before the DATE OF CLOSING any and all delinquent real estate taxes. Buyer shall pay real estate tares due and payable in the year following closing and thereafter and any special assessments levied and payable after the DATE OF CLOSING. Seller makes no representation concerning the amount of future real estate taxes or of future special assessments. 7. SELLER'S OBLIGATIONS. Upon execution of this Agreement, Seller shall serve notice upon the tenants currently occupying the Property, effectively terminating any and 1) all interest said tenants may have in the Property effective on or before the DATE OF CLOSING, providing sufficient proof of said notice to Buyer. In the event Seller is unable to terminate said tenants' interest in the Property prior to any mutually agreed upon DA'Z'E OF CLOSING, said DATE OF CLOSII may be rescheduled to a date no later than March 14, 2013 upon the mutual agreement of the parties. 8. CONDITION OF PROPERTY. Seller shall remove all debris and all personal property not included in this sale from the Property before possession date. Buyer shall have the right to have inspections of the Property conducted prior to closing, including soil and engineering tests which may be conducted at Buyer's election and expense. (a) No alterations shall be made to the exterior or structural elements of existing structures prior to sale of the Property and all existing structures shall be transferred from Seller to Buyer in the condition that they exist at the time of this agreement. 9. BROKERAGE. Seller represents that it has been represented by real estate broker Marty Fisher relative to this transaction and that Seller shall be solely responsible for any and all brokerage commissions due Mr. Fisher as a result of this transaction, which Mr. Fisher has agreed to cap at $17,000. lo. REPRESENTATION'S AND WARRANTIES OF SELLER Seller represents and warrants to and covenants with Buyer that: (a) Seller is the owner of fee simple title to the Property and that Seller has the power and authority to enter into and perform the terms and conditions of this Agreement, and such performance will not conflict with or result in a breach of any of the terms, conditions or provisions of any agreement or instrument to which Seller is a party or by which it is bound, or constitute a default under any of the foregoing; this Agreement is valid, binding and enforceable against Seller in accordance with its terms. (b) Seller has not received any notice of, and Seller is not aware of, any violation of any law, municipal ordinance or other governmental requirement affecting the Property, including without limitation any notice of any fire, health, safety, building, pollution, environmental or zoning violation. (c) Seller has not received any written notice of any condemnation or eminent domain proceedings, or negotiations for purchase in lieu of condemnation, relating to the Property, or any portion thereof, and Seller has no actual knowledge that any condemnation or eminent domain proceedings have been commenced or threatened in connection with the Property, or any portion thereof. (d) (1) To Seller's Imowledge, the Property (A) is not subject to any private or governmental lien or judicial or administrative notice, order or action relating to Hazardous Substances or environmental problems, impairments or liabilities with respect 3 to the Property and (B) to Seller's knowledge, is not in, or with any applicable notice and/or lapse of time, and/or failure to take certain curative or remedial actions, will not be in violation of any Environmental Laws (as herein defined). (2) Seller represents that there was a reportable spill on the Property that the Minnesota Pollution Control Agency has confirmed was properly cleaned up and that Seiler shall provide Buyer with any and all Limited No Further Action Determination Letters, or the equivalent, received from the MPCA relative to said spill. (3) Seller shall not allow, prior to Closing, any Hazardous Substances to exist or be stored, generated, used, located, discharged, released, possessed, managed, processed or otherwise handled on the Property in such a manner so as to increase the likelihood of environmental contamination on the Property, and shall comply with all Environmental Laws affecting the Property. (4) Seller shall immediately notify Buyer should Seller become aware of (A) any Hazardous Substance or other environmental problem or liability with respect to the Property, (B) any lien, order, action or notice of the nature described in subparagraph (1) above, or (C) any litigation or threat of litigation relating to any alleged unauthorized release, discharge, generation, use, storage or processing of any Hazardous Substance or the existence of any Hazardous Substance or other environmental contamination, liability or problem with respect to or arising out of or in connection with the Property. As used herein, " Hazardous Substances means any matter giving rise to liability under the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901 et seg. , the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. Sections 9601 et sea. (including the so- called "Superfund" amendments thereto), or other applicable, federal, state or local statute, law, ordinance, rule or regulation governing or pertaining to any hazardous substances, hazardous wastes, chemicals or other materials, including without limitation asbestos, polychlorinated biphenyls, radon, petroleum and any derivative thereof, or any common law theory based on nuisance or strict liability (all of the foregoing statutes, laws, ordinances, rules, regulations and common law theories being sometimes collectively hereinafter referred to as " Environmental Laws (e) No litigation or proceedings are pending or, to Seller's knowledge, contemplated, threatened or anticipated, relating to the Property, or any portion thereof. (f) With the exception of the current tenants occupying the Property, Seller has no knowledge of any unrecorded agreements, undertakings or restrictions which affect the Property. With the exception of the current tenants' interest in the Property, there are no other tenants, persons or entities occupying any portion of the Property and no claim exists against any portion of the Property by reason of adverse possession or prescription. With respect to those tenants currently occupying the Property, Seller shall provide sufficient notice to said tenants in order to effectively terminate any and all rights 4 and interests said tenants may have to use and/or occupy the Property, with said termination effective no later than the DATE OF CLOSING. (g) To the Seller's knowledge (i) there is no obligation with respect to the Property for any assessment, annexation fee, payment, donation or the like, (other than general real estate taxes, which are required to be paid by the Buyer); (ii) there are no obligations in connection with the Property of any so- called "recapture agreement" involving refund for sewer extension, oversizing utility, lighting or like expense or charge for work or services done upon or relating to the Property or otherwise; and (iv) there is no unexecuted paving agreement or undertaking with any government agency respecting construction or any acceleration or de- acceleration lane, access, or street lighting. (h) To the best of Seller's knowledge, the Property is properly zoned as a commercial highway business. (i) There has been no labor or material furnished to the Property on behalf of or at the request of Seller in the past 120 days for which payment has not been made. 0) There are no present violations of any restrictions relating to the use or improvement of the Property. (k) The Property currently has a right of access from a public right of way which Seller warrants will remain available until the DATE OF CLOSING. If, prior to the DATE OF CLOSING, Seller obtains knowledge of a fact or circumstance the existence of which would constitute a breach by Seller of its representations and warranties hereunder or would render any such representations and warranties materially untrue or incorrect, Seller shall promptly notify Buyer in writing of the same. Under said circumstances, and in addition to any other right or remedy that may be available to Buyer, Buyer, at its option, may terminate this Agreement without further liability by giving written notice thereof to Seller. All representations, warranties, covenants, indemnities and undertakings made herein shall be deemed remade as of the DATE OF CLOSING and shall be true and correct as of the DATE OF CLOSING and shall be deemed to be material and to have been relied upon by the parties, notwithstanding any investigation or other act of Buyer heretofore or hereafter made, and shall survive Closing and execution and delivery of the Warranty Deed for a period of twelve (12) months after the DATE OF CLOSING. 11. DISCLOSURE OF NOTICES. Seller has not received any notice from any governmental authority as to a violation of any law, ordinance or regulation. If the Property is subject to restrictive covenants, Seller has not received any notice from any person as to a breach of the covenants. 12. POSSESSION. Seller shall deliver possession of the Property not later than the DATE OF CLOSING. 5 13. EXAMINATION OF TITLE. Title examination will be conducted as follows: A. Seller's Title Evidence Seller shall furnish to Buyer a commitment ("Title Commitment ") for an ALTA form B 1990 Owner's Policy of Title Insurance, certified to date to include proper searches covering bankruptcies, State and Federal judgments and liens, insuring title to the Property deleting standard exceptions and including affirmative insurance regarding zoning, contiguity, appurtenant easements and such other matters as may be identified by Buyer, in the amount of Four Hundred Thirty Thousand and 00/100 Dollars ($430,000.00) issued by a title insurance company acceptable to Buyer, subject only to the Permitted Encumbrances. B. Buyer's Obiections Buyer shall be allowed thirty (30) business days after receipt for examination of title and making any objections, which shall be made in writing or deemed waived. 14. TITLE CORRECTIONS AND REMEDIES. Seller shall have ten (10) days from receipt of Buyer's written title objections to make title marketable. Upon receipt of Buyer's title objections, Seller shall, within ten (10) business days, notify Buyer of Seller's intention as to making the title marketable within the permitted period. Liens or encumbrances for liquidated amounts which can be released by payment or escrow from proceeds of closing shall not delay the closing. Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, all payments required herein and the closing shall be postponed. A. If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation establishing that title has been made marketable, and if not objected to in the same time and manner as the original title objections, the closing shall take place within ten (10) business days or on the scheduled closing date, whichever is later. B. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may, as its sole remedy, cancel this contract as provided by statute. C. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: (1) Cancel this contract as provided by statute; (2) Seek damages from Seller including costs and reasonable attorneys' fees; (3) Seek specific performance within six (6) months after such right of action arises. n . TIME IS OF THE ESSENCE FOR ALL PROVISIONS OF THIS CONTRACT. 15. NOTICES. All communications, demands, notices, or objections permitted or required to be given or served under this Purchase Agreement shall be in writing and shall be deemed to have been duly given or served if delivered in person to the other party or its duly authorized agent or if deposited in the United States mail, postage prepaid, for mailing by certified or registered mail, return receipt requested, and addressed to the other party to this Purchase Agreement, to the address set forth at the beginning of this Purchase Agreement Any party may change their address by giving notice in writing, stating their new address, to any other party as provided in the foregoing manner. Commencing on the tenth (I Oth) day after the giving of notice, the newly designated address shall be that party's address for the purpose of all communications, demands, notices, or objections permitted or required to be given or served under this lease. 16. iAIIINNESOTA LAW. This contract shall be governed by the laws of the State of Minnesota. 17. SELLER'S DISCLOSURE. Within thirty (30) days of execution of this Agreement, Seller shall provide Buyer with the following disclosures: (1) Individual sewage treatment system(s); (2) Well and fuel tank storage and locations; (3) Environmental contamination; and (4) MPCA and EPA Compliance Reports. 18. PAYMENT OF CLOSING COSTS. Each party will pay closing costs which are normally allocated of Buyers and Sellers in a real estate transaction. REMAINDER OF PAGE INTENTIONALLYLEFT BLANK Mardot Properties, LLC agrees to sell the Property for the price and upon the terms and conditions set forth above SELLER. The Andover Economic Development Authority agrees to buy the Property for the price and upon the terms and conditions set forth above. BUYER: 7 MARDOT PROPERTIES, LLC B Y/A Z� 'M arlin Besler z !„ Its: / t (Title) ANDOVER ECONONffC DEVELOPMENT AUTHORITY Michael R. Gamache, President James Dickinson, Executive Director EXHTBIT A LEGAL DESCRIPTION PID # 33-32-24-13-0046 ! ! . Ar f $ L LLt it ' r�11L 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755 -5100 FAX (763) 755 -8923 • WWW.CI.ANDOVER.MN.US TO: FROM: SUBJECT: DATE: President and Commissioners Jim Dickinson, City Administrator Andover Community Center/YMCA Financing Discussion November 7, 2012 Over the past few months, the City has been evaluating refinancing opportunities for the Community Center; the Executive Director will provide an update on discussions the City is contemplating relative to potential refinancing options for the Community Center. A narrative on one such option is attached and will be discussed at the meeting. The Community Center was originally financed in 2004 by lease revenue bonds issued by the Andover Economic Development Authority (AEDA). The AEDA debt payments are made via an annual pledge from the City of Andover. The City of Andover supports the pledge with a sub- lease to the YMCA and annual tax levy. Recreation Facility Tax Abatement What is Tax Abatement? Tax abatement is the ability for an individual taxing entity to capture and use all or a portion of the local property tax revenues within a defined geographic area to assist with a public improvement, attract a new development, or retain a business. Property owners do not need to give permission to abate taxes nor does it change the amount of taxes to be collected. It allows each major taxing jurisdiction to choose to contribute its share of the taxes and limit abatement in any manner it determines appropriate. The City may grant an abatement without other jurisdictions also agreeing to participate. In practice, it is a reallocation of taxes rather than an exemption from paying taxes It is governed by Minnesota Statutes 469.1812- 469.1815. Tax abatement can be used to finance pubic infrastructure like a community center, regardless if the benefited development or infrastructure is on or adjacent to the parcel for which the tax is being abated. The city has flexibility in how it chooses to abate /redirect the taxes and can abate /redirect a specific percent or the taxes or dollar amount, which may include taxes from new development or existing taxes. If more than one taxing entity participates in the abatement, the length of the abatement is not required to be the same for each entity. There are no qualified cost requirements for tax abatement. The taxpayer pays taxes in the abated property in the same manner it would if the taxes were not being abated. What is the process for establishing tax abatement? After identifying the details of the abatement, including the amount, term and the parcels for abatement, a public hearing with at least a 10 day published notice must be held by each entity granting the abatement. The entity granting the abatement is then required to adopt a resolution approving the abatement. The adopting resolution must include the following: (1) Term of the abatement; (2) Statement of public benefit expected to result from the abatement; (3) Required findings; and (4) Schedule of repayment of deferred taxes (if applicable). This process must be completed by each entity granting the abatement. What findings must the approving entity make prior to approving tax abatement? The entity granting the abatement must make a finding that the abatement benefits to the political subdivision at least equal the costs of the proposed agreement, and that the abatement is in the public interest for at least one of the following reasons: • Increase or preserve tax base • Provide employment opportunities • Provide or help acquire or construct public facilities • Redevelop or renew blighted areas • Provide access to services for residents • Provide public infrastructure • Phase in a property tax increase, in specific circumstances • Stabilize the tax base i What is the term of abatement? If all three taxing entities (city, county and school district) participate in tax abatement the maximum term is 15 years. However, if only one or two of the entities participate, the term is a maximum of 20 years. The term of the abatement must be included in the adopting resolution. If the resolution is silent to the term, the maximum term is 8 years. What is the maximum amount that can be abated? In any one year, the TOTAL amount a political subdivision may abate may not exceed the greater of 10 percent of the entity's net tax capacity or $200,000. In addition, taxes on a parcel may not be abated while the parcel is located in a tax increment district. The City's net tax capacity is approximately $23.5 million, so its maximum total abatement capacity is $2,350,000. How do abatements affect tax levies? Abatements are special tax levies. The amount of the abatement must be added to the total levy for the current year. The abatement amount must be included in the proposed levy for Truth in Taxation as well as the certified levy Who has used tax abatement bonds for recreation purposes? Issuer Name, Issue Name Amount Ppipose Buffalo I City of I MN Taxable Temporary General Obligation Tax Abatement Bonds, 3,000,000.00 Golf course Series 2004D Maplewood I City of I MN j General Obligation Tax Abatement Bonds Series 2004C 5,025,000 00 Park and public improvements Tracy I City of I MN !Temporary General Obligation Tax Abatement Bonds, 1,195,000.W Swimming pool Series 2005A Chisago City I City of I MN lGenerat Obligation Tax Abatement Bonds, Series 2003B 1,550,000.00 Land acquisition for parks Cloquet I City of I MN (General Obligation Tax Abatement Bonds, Series 2009A 1 500,000.00 Swimming pool r St. Cloud I City of MN _... -- -._... -- - — I GO Tax Abatement Bonds, Series 2010B 1 22,3_15,00_0.00 Civic Cen Duluth I City of I MN j Taxable General Obligation Tax Abatement Bonds, Series 2012A 7,055,000.00 Spirit Mount recreation area In addition, it is our understanding that the City of Woodbury is contemplating a $13M expansion of its recreational facilities using tax abatement and the City of Savage financed $4,915,000 in tax abatement bonds in 2012 for an indoor sports facility.