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HomeMy WebLinkAboutAdded - EDA & Envid Realty August 4, 2000 TO: MAYOR MADER AND CITY COUNCILMEMBERS SUBJECT: Consent Agenda Addition The City Attorney has asked that this .item be added to the Consent Agenda since it is a housekeeping matter which could jeopardize the closing of the Post Office property scheduled to occur before the August 21st Council meeting. 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER MEETING DATE: AGENDA #: PREPARED BY: AGENDA ITEM: DISCUSSION: CITY COUNCIL AGENDA REPORT ~~GUST 7, 2000 ~ Frank Boyles, City Manag~ CONSIDER APPROVAL OF RESOLUTION OO-XX APPROVING RELEASE OF DEVELOPMENT AGREEMENT BY AND BETWEEN THE EDA AND ENIVID REALTY CORPORATION DATED APRIL 2,1990. History: In 1990, the City of Prior Lake through its Economic Development Authority (which was the City Council) entered into a development agreement with Enivid Realty Corporation. The development agreement contemplated the construction of a new grocery store (County Market) behind the Priordale Mall on what has now become the Post Office site (Lots 1 and 2, Block 1, Enivid First Addition), The development was never completed. Current Circumstances: The Post Office desires to acquire these lots from Enivid to construct a 20,000 square foot post office facility. Their research has identified this agreement and, as a housekeeping measure, they have asked the City to release the agreement. The City staff and attorney will review the documents prior to Monday night's meeting to assure that the City is in a position to release it. Conclusion: Since the City supports the construction of the post office facility and because the development agreement is an impediment to consummating the sale, the City Council should release the agreement if there are no issues once a review of the document is complete. ALTERNATIVES: (1) Add this item to the Consent Agenda and adopt it as a housekeeping measure. (2) Take no action pending receipt of additional information. RECOMMENDED MOTION: Alternative (1). The Economic Development Authority will be asked to take identical action at their regular meeting. 16200 Eagle Creek Ave. S.E., Prior Lake, Miimesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 1:\COUNCIL\AGNRPTS\2000\0807 _ 4C.DOC AN EQUAL OPPORTUNITY EMPLOYER RESOLUTION OO-XX AUTHORIZING THE RELEASE OF A DEVELOPMENT AGREEMENT BY AND BETWEEN THE EDA AND ENIVID REAL TV CORPORATION DATED APRIL 2,1990 Motion By: Second By: Whereas, the City, through its City Council and Economic Development Authority, entered into a development agreement dated April 2, 1990; and Whereas, the development agreement contemplated the construction of a grocery store; and Whereas, the development agreement is no longer applicable since the original grocery store project is no longer viable; and Whereas, the U,S. Postal Service is now proposing to acquire this property for the construction of a 20,000 square foot building; and Whereas, the U.S. Postal Service has requested that as a housekeeping matter the City release the development agreement. Now Therefore, be it hereby resolved by the Prior Lake City Council that the Mayor and City Manager are hereby authorized to enter into an agreement to release the City and Enivid Realty Corporation from any obligations created by the agreement dated April 2, 1990 (Documents #269322 and #293225). Passed and adopted this 7'h day of August, 2000. YES NO Mader Mader Ericson Ericson Gundlach Gundlach Petersen Petersen vacant vacant ATTEST: (Seal) Frank F. Boyles, City Manager 16200 Eagle Creek Ave. S.E., Prior Lake, Minnesota 55372-1714 / Ph. (612) 447-4230 / Fax (612) 447-4245 AN EQUAL OPPORTUNITY EMPLOYER .. . -.~'T.. RELEASE FOR VALUABLE CONSIDERATION, the receipt and sufficiency of which are acknowledged, the City of Prior Lake, a Minnesota municipal corporation, through the authority granted by its City Council, on behalf of itself and its successors and assigns, hereby releases and quit claims all interest held by virtue of that certain Development Agreement by and between the EDA and Enivid Realty Corporation dated April 2, 1990, recorded April 13, 1990 as Document No, 269322, and as amended and restated by Document No. 293225, in the office of the Scott County Recorder against the following described real property: Lots 1 and 2, Block 1, Enivid First Addition according to the recorded plat thereof, Scott County, Minnesota Dated: CITY OF PRIOR LAKE By: Wesley M. Mader, Mayor By: Frank F. Boyles, City Manager STATE OF MINNESOTA ) )55. COUNTY OF SCOTT ) The foregoing instrument was acknowledged before me this 7'h day of August, 2000, by Wesley M. Mader and Frank F. Boyles, respectively the Mayor and City Manager of the City of Prior Lake, a Minnesota municipal corporation, through the authority granted by its City Council. Notary Public This instrument drafted by: CITY OF PRIOR LAKE 16200 Eagle Creek Avenue S.E. Prior Lake, MN 55372 1:\COUNCIL\AGNRPTS\2000\0807 _ 4C.DOC .,-...... ......- ..