Book #83 6-29-99 -12-22-99 Rpt # 99-152

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Agenda Section:V I I I-5 CITY OF NEW BRIGHTON Report Number: 99-7 7 5 REQUEST FOR COUNCIL CONSIDERATION • Report Date: December 14, 1999 ITEM DESCRIPTION: RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT, (MAIN STREET VILLAGE, TIF#26) DEPT. HEAD'S APPROVAL: Kevin Locke, Director of Community Development MANAGER'S REVIEW/RECOMMENDATION: No comments to supplement this report49 Comments attached EXPLANATION/SUMMARY (attach supplemental sheets as necessary): A Contract for Private Redevelopment by and between the City and Mainstreet Village,LLC(John Ordway and Len Pratt) for the redevelopment of the portion of Brighton Corporate Park III(BCP3)located in TIF District 426(see attached map) has been prepared by Jim Casserly with Krass-Monroe. The agreement is ready for City Council approval and authorization to execute. The terms of the agreement are summarized in the attached memo from Jim Casserly. Execution of the agreement commits the City to completing assembly of the redevelopment site and the developer to the construction of the Main Street Village project. The City is responsible for assembling the site by April 1,2000. The project will be constructed in up to six phases beginning in the spring of 2000. The first phase must be completed by December 31, 2000. The last phase must be •ompleted by December 31, 2003. The completed project will consist of 80,000 square feet of commercial space and 96 apartment units. The minimum value for tax purposes is$60/sq. ft. of commercial space and$60,000 per apartment unit. The minimum value of the proposed retail/convenience store will be$75/sq. ft. The total estimated market value of the project will be approximately$10.5 million. The City will sell the redevelopment site to Mainstreet Village LLC for a price of$4/sq. ft., less the cost of site improvements and a credit of$4,000 per underground parking space provided. The developer is responsible for all site improvements(grading, soil corrections, utilities,pedestrian improvements, internal streets, etc.)within the project. The developer has also agreed to provide underground parking for the apartment units and the office building. The site has been divided into six tracts of land of approximately 75,000 sq. ft. each. The total credit for site improvement costs will be limited to a maximum of$74,000 for each tract. The City will transfer each tract individually as the developer is ready to begin construction on the individual tract. Conveying land to the developer only when construction is ready to begin,will give the City security that the project will be completed. If the developer does not perform in accordance with the redevelopment contract,the City may retain undeveloped land. In addition,the developer will give the City a Letter of Credit in the amount of$500,000 as security for their performance. The amount of the Letter of Credit will be reduced , when site improvements are completed and eliminated on completion of the minimum improvements. Staff recommends approval and authorization to execute the contract. A resolution authorizing the agreement is attached. RECOMMENDATION: TO WAIVE THE READING AND ADOPT THE RESOLUTION AUTHORIZING EXECUTION AND DELIVERY OF A CONTRACT FOR PRIVATE REDEVELOPMENT,BY AND BETWEEN THE CITY OF NEW BRIGHTON,MINNESOTA AND MAIN STREET VILLAGE, LLC. 0 Orl-- --/ Kev' Locke,Director of C nity Development I:ISHAREDICOUNCIL\REPORTS11999199-CD\Mainslreel Village Agr wpd