HomeMy WebLinkAbout5D - Keystone Communities
16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
CITY COUNCIL AGENDA REPORT
MEETING DATE:
AGENDA #:
PREPARED BY:
NOVEMBER 3, 2003
5D
DONALD RYE, COMMUNITY DEVELOPMENT
DIRECTOR
AGENDA ITEM:
CONSIDER APPROVAL OF
AUTHORIZING PAYMENT OF
KEYSTONE COMMUNITIES
RESOLUTION
$200,000 TO
DISCUSSION:
History In April of 2001, the City Council approved a
resolution (copy attached) approving in concept the provision
of up to $200,000 in financial assistance to a proposed assisted
living project. The project was proposed by a group called
Crystal Care. Subsequent to that, before development was
approved, the project was taken over and completed by a group
called Keystone Communities. The project evolved from the
original 60 unit proposal that called for 40 units of assisted
living and 20 memory care units to a 107 unit project
containing 60 senior apartments, 27 assisted living units and 20
memory care units.
When the Senior Care Overlay district was approved in 2002,
part of the approval required a development agreement
between the City and Crystal Care (which is the former name
of Keystone Communities). One of the provisions of the
development agreement provided that the City would
reimburse Keystone Communities for up to $200,000 of the
site improvements. The agreement defines site improvements
as site grading, footings and foundations, building costs,
landscaping, parking lot lighting and SAC and WAC charges.
The agreement provides that the City will reimburse the lesser
of $200,000 or the cost of site improvements. Crystal Care has
provided a copy of the contractors "Application and
Certification For Payment". The Certificate shows
www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
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ALTERNATIVES:
RECOMMENDED
MOTION:
REVIEWED BY:
I J
expenditures to date for eligible costs of $7,913,601.65.
Consequently, the developer has met the eligibility
requirements for reimbursement contained in the development
agreement.
Issues There do not appear to be outstanding issues. The source
of the funds will be the Contingency Reserve Account. This
expenditure will place the Contingency Account in a negative
position; however, this will be covered by the General Fund
Balance.
Conclusion The terms of the development agreement providing
payment of $200,000 for site improvements have been satisfied
and the developer is entitled to payment.
I. Approve the attached resolution authorizing payment of
$200,000 to Keystone Communities.
2. Deny the attached resolution.
3. Continue and direct staff as to Council's wishes.
Motion to adopt the attached resolution approving payment of
$200,000 to Keystone Communities.
anager
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16200 Eagle Creek Avenue S.E.
Prior Lake, MN 55372-1714
RESOLUTION 03-XX
RESOLUTION OF THE PRIOR LAKE CITY COUNCIL
AUTHORIZING PAYMENT TO KEYSTONE COMMUNITIES
MOTION BY:
SECOND BY:
WHEREAS: On April 2nd, 2001, the City Council passed resolution 01-34 approving in
concept the use of cash contributions to assist in the funding of an assisted living project,
and
WHEREAS: The City entered into a development agreement with the Developer
(Keystone Communities) which provided for reimbursement of $200,000 to the
Developer for site improvement costs, and
WHEREAS: The Developer has submitted documentation of expenditures for the
project that meet the qualifications for reimbursement pursuant to the development
agreement, and
WHEREAS: There are adequate funds available to fund the application.
THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE
CITY OF PRIOR LAKE, MINNESOTA,
1. The recitals set forth above are incorporated herein.
2. The amount of $200,000 is hereby authorized to be paid to the Developer for site
improvement costs associated with the development of the Keystone
Communities project located at 4685 Park Nicollet Avenue, Prior Lake, MN.
3. The amount of $200,000 is to be paid from the Contingency Reserve Account.
Any negative balance in the Contingency Reserve Account caused by this
payment shall be drawn from the General Fund Balance.
Passed and adopted this 20th day of October, 2003.
YES
NO
HAUGEN HAUGEN
BLOMBERG BLOMBERG
LEMAIR LEMAIR
PETERSEN PETERSEN
ZIESKA ZIESKA
L:\Community Dev\keystone resn.doc www.cityofpriorlake.com
Phone 952.447.4230 / Fax 952.447.4245
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{Seal}
Frank Boyles, City Manager
City of Prior Lake
L:\Community Dev\keystone resn.doc
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2 October 2003
Frank Boyles
City Manager
City of Prior Lake
16200 Eagle Creek Avenue SE
Prior Lake, MN 55372-1714
Re: Reimbursement of Site Improvements
Keystone Communities of Prior Lake
4685 Park Nicollet Blvd.
Frank,
Our senior community is substantially complete, has received the
certificate of occupancy and now has residents!
We respectfully request of the City the "Reimbursement of Site
Improvements" in the amount of $200,000 as set out in Section 3.1 of
the Development Agreement between the City of Prior Lake and
Keystone Communities, LLC.
We are enclosing a copy of the general contractor's "Application And
Certification For Payment." This Certification evidences the Total
Development Cost and substantial completion of the project.
Please let us know if we need to submit anything else is order for the
City to process this reimbursement.
Yours truly,
A
Mic ae . Le
Vi e President
enclosure
www.keystonecommunities.com
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RESOLUTION 01-34
A RESOLUTION APPROVING IN CONCEPT THE USE
OF CASH CONTRIBUTIONS TO FUND AN ASSISTED LIVING PROJECT
MOTION BY: PETERSEN
SECOND BY: GUNDLACH
RECITALS
WHEREAS, the City has been approached by Messrs. Larry Johnson and Mike Lewis dba
Crystal Care LLC (collectively "Developer") with a project to construct an
assisted living facility with 40 units of assisted living and 20 units of memory care
(hereinafter "Project"); and
WHEREAS, the aforementioned Project is known as CRYSTAL CARE; and
WHEREAS, the Developer maintains that the Project is not economically viable without the
assistance of public financing; and
WHEREAS, to encourage and facilitate the development of housing to meet the life-cycle
needs of the residents of the City consistent with the objectives of the City's
Comprehensive Plan, the City is willing to work with responsible developers on
qualifying projects; and
WHEREAS. the Developer agrees to bear all risks associated with legislative changes or
resulting from statutory requirements which the Developer is unable to meet; and
WHEREAS, both the City and Developer understand that both time and costs are associated
with the preparation and evaluation of plans and related documents necessary to
develop and analyze the proposed Project and determine whether the Project
meets the City Economic Development Incentives Goal Targets Policy; and
WHEREAS, both the City and Developer wish to avoid the unnecessary expenditure of time
and money on projects that are not of interest to the City.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF PRIOR LAKE,
MINNESOTA THAT:
1. The Recitals set forth above are incorporated herein as if fully set forth.
2. The Developer is encouraged to submit to the City an application for Economic
Development Incentives for the Project referred to as Crystal Care. Along with the
application, the Developer will deposit with the City the amount of Twelve Thousand Dollars
($12,000) which monies shall be used by the City solely to pay for legal, financial and staff
costs associated with the analysis, review and facilitation of the Project.
162~:G<l~!fbfreek Ave. S.E., Prior Lake. Minnesota 55372-1714 / Ph. (952) 447-4230 / Fax (952) 447-4245
AN EQUAL OPPORTUNI1Y EMPl.OYER
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3. The Developer will design the Project to be compatible with all applicable zoning,
subdivision and other land use regulations of the City and other governmental entities
having jurisdiction.
4. The Developer will provide the City with a plan for financing the Project that includes a
maximum cash contribution by the City of no more than Two Hundred Thousand Dollars
($200,000).
5. The Developer must demonstrate to the City that it has the capacity to successfully
complete the Project and that the City's financial assistance is necessary for the proposed
Project to occur.
6. All determinations regarding the suitability of the site for the proposed Project are the sole
responsibility of the Developer to determine for itself. The City makes no representations or
warranties that the site under consideration by the Developer is suitable or will sustain the
proposed Project.
7. The City will analyze the documents, plans, materials and data supplied by the Developer
(the "Application") and determine if the Project qualifies for the contribution by the City.
8. If the Project meets all the criteria discussed herein the City will negotiate an Economic
Development Incentives Financing Agreement with the Developer. The City Council will act
reasonably in determining whether the Project meets applicable criteria, including but not
limited to financing, statutory requirements, City policy and zoning requirements.
9. Notwithstanding Paragraphs 1 through 8 above, nothing in this Resolution is intended to
bind the City Council to provide the Developer with a cash contribution. This Resolution is
intended to demonstrate the City's interest in moving forward with the Developer.
Passed this 2nd day of April, 2001.
Mader
Ericson
Gundlach
Petersen
Zieska
YES
X
Absent
X
X
X
NO
Mader
Ericson
Gundlach
Petersen
Zieska
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