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Home My WebLink About1989-08-29 CA Ltr to Briggs & Morgan � s1 • LAW OFFICES OF ECKBERG, L.AMMERS, BRIGGS, WOLFF & VIERLING 1835 NORTHWESTERN AVENUE STILLWATER, MINNESOTA 55082 LYLE J. ECKBERG (612) 439 -2878 JAMES F. LAMMERS FAX (612) 439.2923 ROBERT G. BRIGGS PAULA. WOLFF MARK J. VIERLING August 29, 1989 VICKI L. GIFFORD GREGORY G. GALLER C' VIA FACSIMILE TRANSMISSION J� (FAX #222 -4071) �--z Ms. Mary Ippel Attorney at Law Briggs and Morgan Professional Association W -2200 First National Bank Bldg. St. Paul, MN 55101 RE: City of Oak Park Heights, Watson Tax Increment Financing Development Agreement - Oak Park Partners Dear Mary: At the City Council meeting, which was held on August 28, 1989, the Council and the Developers with staff took approximately two and one -half hours to review the Development .Agreement and Watson's objections thereto. Based upon the directions of the Council, the following changes are to be implemented within the Development Agreement (coincidentally, I understand that Mr. Watson is now in agreement with same). The changes are as follows: Page 5 (7): Insert the date December 1, 1990. Page 5 (9): Delete and modify to read: "Any improvements to County State Aid Highway No. 67 (Osgood Avenue) desired to be implemented by the City of Oak Park Heights shall be at the sole expense of the City of Oak Park Heights. Developer shall cooperate to the extent requested or desired by the City Engineer to dedicate right -of -way on property owned by the Developer to implement any street alignment or access reconfiguration desired by the City of Oak Park Heights to be implemented in the area. The City of Oak Park Ms. Mary Ippel Page 2 August 29, 1989 Heights shall not be required to make any street alignments or improvements, but will notify the Developer at the time of final approval of the Planned Unit Development as applied for as to the City's decision as to whether or not to implement street reconfiguration, redesign, or improvements on County State Aid Highway No. 67." Page 6, Paragraph 3.3 (2): Modify to insert a cap of $960,000 (gross dollars, not present value). Section 3.3 (2), sub. B.: Base fair market value shall be the existing fair market value of $3,480,900 (coincidentally, and as a result of the agreement to reduce the base value, the district shall be certified on September 11, 1989, at the City Council meeting; and the Developer is aware that this will result in a partial payment for the first year). Page 7, Section 3.4 (1): Insert the word "voluntarily" between Developer and sells (strike "other than in the normal course of business "). Section 3.4 (3), Line 3: Increase $850,000 to $960,000. Page 8 - Add (5): "The provisions of this paragraph shall not prohibit the Developer from petitioning the City to consent to a sale, lease, transfer, or assignment; however, any decision to consent or to withhold consent to such sale, transfer, or assignment shall remain in the discretion of the City." Page 8 - Add (6): "The Developer is financing a significant portion of its interest in and to the premises with Northwestern Mutual Life Insurance Company, who will be issuing a mortgage upon the premises. In the event of mortgage default occurring prior to Project completion, transfer of the Ms. Mary Ippel Page 3 August 29, 1989 Developer's interest in and to the Project to Northwestern Mutual Life Insurance Company by way of mortgage foreclosure shall not be deemed to be a sale, lease, transfer, or assignment of the Project pursuant to the terms of this Section." Page 8, Section 3.5: Delete provisions of Developer Equity and insert the following under the heading of Developer Equity: "The Developer shall certify and provide to the City sufficient reasonable documentation to verify that at the date of closing, the Developer shall have directly invested funds into the Project in excess of $960,000. Such verification, once confirmed by the City, shall satisfy the Developer equity requirement set forth within the City policy adopted March 13, 1989." Article 4, Section 4.1: All changes requested by the Developer were rejected by the City Council. The Article shall remain as it is presently provided for. Section 4.3: I realize that we had earlier deleted out the Developer's proposed 4.3 because the discussion of remedies was intended within that Section to apply to the City. The Developer wishes an insertion of a paragraph somewhere within the Article to indicate that they are still left to their common law remedies, whatever they may be, in the event of breach or violation of the Agreement by the City. Please review this matter and make appropriate provision within the Agreement or, if the same creates significant problems, please advise. This matter was not discussed with the Council. The Developer requested an insertion of a paragraph that would direct that payments be made to the Developer from the City Clerk within 30 days after the Clerk had received the check from the County. The Council found no problem with this and, unless you have major problems with that type of provision, please make provisions to insert such a paragraph within the Development Agreement, allowing for semi - annual Ms. Mary Ippel Page 4 August 29, 1989 payments within 30 days after the Clerk's receipt of the County's tax payment. If you have any other concerns or que ions on this matter, please do not hesitate to contact me di tly. T ' L' ruly urs, ark J. Vierlin MJV:kp cc: Mr. Robert Voto (FAX #426 -5004) Mr. Dan Wilson (FAX #925 -2721)