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HomeMy WebLinkAbout5 - ENVID Corp. Development Agreement AGENDA NUMBER: PREPARED BY: SUBJECT: DATE: INTRODUCTION: BACKGROUND: CENSUS '90 . 5 KAY SCHMUDLACH, ASSISTANT CITY MANAGER CONSIDER RESOLUTION 90-04 (EDA) APPROVING AND AUTHORIZING THE EXECUTION OF A DEVELOPMENT AGREEMENT WITH ENIVID CORPORATION APRIL 2, 1990 The City council and Economic Development Authority (EDA) of Prior Lake established the Redevelopment Project No. 2 and Tax Increment District No. 2-1 on February 20, 1990 to provide the opportunity for ENIVID Corporation to develop the land adjacent to Priordale Mall. Resolution No. 90-20 approving and authorizing the execution of the Development A9reement between ENIVID Corporation and the C1ty of Prior Lake has been included on the agenda for EDA consideration. Economic Development Authorit~ approval of this Resolution will consit1tue the final approval necessary for the continuation of this project. The City Council must convene to an EDA meeting to consider this Resolution and Development Agreement. The Prior Lake City Council and the Economic Development Authority (EDA) were initially introduced to the proposed ENIVID Corporation project on January 16, 1990. The City Council established a February 20th Public Hearing date to provide public review and comment on the use of Tax Increment Financing for the project. School District #719 and the Scott County Board have both provided favorable recommendations for this project to the Prior Lake city Council. The EDA and city Council approved the Redevelopment Project No. 2 and Tax Increment Financing Plan for Tax Increment District No. 2-1 on Februar~ 20 and directed staff to continue negot1ating on the Development Agreement. 4629 Dakota St. S.E., Prior Lake, Minnesota 55372 / Ph. (612) 447-4230 / Fax (612) 447-4245 DISCUSSION: ALTERNATIVES: RECOMMENDATION: City staff has negotiated with ENIVID Corporation representatives to ensure a complete understanding of all remaining developer and City responsibilities. These agreements have been documented in the attached Development Agreement. The Agreement the Brig9s consultat1on Guenette, and was prepared by Jim O'Meara and Morgan Law Office with Glenn Kessel, City staff. of in Roger The Prior Lake City representatives have worked with the developer's representatives and their attorneys to complete the negotiated agreements. Patricia Devine, the President of ENIVID corporation is vacationing in Palm Springs and was unable to sign the Development Agreement in time to include in the City Council Agenda Packet. Four copies of the Development Agreement have been expressed to Ms. Devine and staff anticipates having the signed Development Agreements in our possession by April 2, 1990. The Development Agreement has been specifically written to include staff approval of all plans, including site plans and landscaping plans. This provision will ensure a quality development, because any de~arture from the City approved plans will cons1titute a breach of the Development Agreement and will allow the City to withhold the paYment of the Tax Increment to ENIVID Corporation. Staff has identified the following action alternatives: 1. The EDA can approve Resolution 90-20 approving and authorizing the Development Agreement as written. 2. The EDA can deny Resolution 90-20 and direct staff to renegotiate the Development Agreement for a specific reason. The EDA is being asked to consider approving the Development Agreement for the ENIVID corporation proposed Super Valu project. A signed Development Agreement has been attached ACTION NECESSARY: for EDA review. staff recommends the City Council follow alternative one approving the Development Agreement as written. Motion to approve the in order. Motion to Development Authority execute the documents Development Agreement is authorize the Economic and the City Manager to is in order. RESOLUTION 90-04 (EDA) A RESOLUTION OF THE ECONOMIC DEVELOPMENT AUTHORITY APPROVING AND AUTHORIZING THE EXECUTION OF A DEVELOPMENT AGREEMENT MOTIONED BY SECONDED BY WHEREAS, The EDA has the powers provided in Minnesota statutes, Sections 469.090 through 469.108 (the "Act"); and WHEREAS, Pursuant to and in furtherance of the objectives of the Act, the EDA has undertaken a program to promote develo~ment and redevelopment of certain land within the City of Pr10r Lake, Minnesota, and in this connection is engaged in carrying out its project known as its Redevelopment Project No. 2 (the "Redevelopment Project") in an area (the "Project Areall) located in the City; and WHEREAS, There has been approved by the Board pursuant to the Redevelopment Plan for the Redevelopment Project "Redevelopment Plan"); and Act a (the WHEREAS, In order to achieve the objectives of the Redevelopment Plan and particularly to make the land in the project Area available for development by private enterprise in conformance with the Redevelopment Plan, the EDA has determined to provide aid and assistance in connection with the Redevelopment Plan through the financing of certain of the public costs of development in the Project Area; and WHEREAS, ENIVID Corporation (the "Company") has presented the EDA with a proposal for the construction within the project Area of an approximately 30,000 square foot supermarket, and a certain Development Agreement between the EDA and the Companr (the "Development Agreement"), stating the terms and condit1ons of such development and the EDA's responsibilities respecting the assistance thereof, has been presented to the Board for its consideration. NOW THEREFORE BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE PRIOR LAKE ECONOMIC DEVELOPMENT AUTHORITY, that: SECTION 1: The Board hereby approves the Development Agreement substantially in the form presented and hereby authorizes the President and Vice-President, in their discretion and at such time, if any, as they may deem a~propriate, to execute the same on behalf of the EDA, w1th such additions and modificaitons as those officers may deem desirable or necessary, as evidenced by their execution thereof. SECTION 2: Upon execution and delivery of the De elopment Agreement, the officers and employees of the~' EDA are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the EDA to implement said agreement, including without limitation the issuance of the EDA Note in accordance with the applicable provisions of said Agreement. The Board hereby determines that the execution and performance of the Development Agreement will help realize the public purposes of the Act and are in furtherance of the Redevelopment Plan. Passed and adopted this 2nd day of April, 1990. SECTION 3: YES NO Andren Fitzgerald Larson Scott White Barsness Arnold Andren Fitzgerald Larson Scott White Barsness Arnold Gene White President {Seal}