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I I I Council Meeting Minutes May 22, 1990 Page 7 Council Business, continued Locke presented for consideration the termination of the assessment agreement and development agreement with S.R. Company regarding the New Brighton Medical Center. In 1982, the City and S.R. Building Company entered into a deve 1 opment agreement for the sale of a parcel through a 1 ease purchase agreement. The agreement requi red construction of a medical clinic building with a minimum taxable value of $1.3 million by January 1984, and goes through 1992. The owner, Comprehensive Medical, has entered into a agreement to sell the building to the Mounds View School District. Under the terms of the development agreement, the transacti on cannot be completed without City approval. Council approval of the sale is needed to release the owners from the City's obligations. To secure the release, the owners will pay the City $114,000 for the outstanding T.I.F. debt, $38,000 for the remaining land sale balance, and payment of 1990 property taxes. These payments will cover the City's tax increment redevelopment costs for the building. The school district sale will return the building to productive use and bri ng a vari ety of functi ons and community servi ces to the downtown area and help the revitalization efforts. Motion by Larson, seconded by Benke, to WAIVE THE READING AND ADOPT THE RESOLUTION AUTHORIZING EXECUTION OF THE TERMINATION AGREEMENT WITH S.R. BUILDING COMPANY. 5 Ayes - 0 Nayes, Motion Carried Norri s presented for cons i derati on the schedul i ng of a pub 1 i c hearing to consider issuance of tax exempt bonds for purchase of the Innsbruck Healthcare Center. The owner, Beverly Enterprises of Minnesota, and the Long Term Care Foundation are negotiating acquisition of the Innsbruck Healthcare Center and 17 other facilities. The Foundation is proposing to finance the purchase with tax exempt industrial development bonds. The City of Minneapolis will issue the bonds for all 18 properties totalling $41 million. A public hearing is requested to consider issuing bonds for the Innsbruck acquisition, approximately $2.5 million. New Brighton and the other cities would execute a joint powers agreement authorizing Minneapol is to sell and issue the bonds. Council Business Termination of Medical Center Agreement Report 90-116 Resolution 90-44 Issuance of Tax Exempt Bonds for Purchase of Innsbruck Health Care Center Report 90-117 Resolution 90-a5