IV.7. Approve Amendment to PUD/Development Agreement between Mokabaka, LLC, and the City of Hopkins--Ica
City of 11opkins
October 16, 2014 Council Report 2014-121
AMENDMENT TO
PUD/DEVELOPMENT AGREEMENT — MOKABAKA, LLC
Proposed Action
Staff recommends adoption of the following motion: Move to approve Amendment to
PUD/Development Agreement between Mokabaka, LLC, and'the City of Hopkins.
With this motion the amendment will be executed.
Overview
In November 2013, SSI Properties, acting on behalf of Mokabaka, LLC, and the Hopkins
HRA entered into a Purchase and Development Agreement stating the terms and
conditions for acquisition of the former Leaman Liquor/Nelson's Meats property and the
redevelopment thereof. The agreement stated that Mokabaka, LLC, was to commence
construction no later than December 1, 2013, and substantially complete construction
within 18 months thereafter.
Mokabaka, LLC, began construction of the new building with the time identified in the
agreement, but will not complete construction within the 18 -month period. Wet weather
conditions, poor soils and contractor delays on the Shady Oak Road and the
redevelopment projects have all been experienced, leading to. the unforeseen delays.
As a result, Mokabaka, LLC, has requested that the HRA approve an extension_ of the date
for completion of construction of the Minimum Improvements to May 31, 2016. Actual
construction completion is expected well before this date. The project is complicated by
the need to demolish the Syndicate Sales property, along with their remodeling and move
into a new space, as part of the redevelopment project.
Primary Issues to Consider
Progress is now being made on the redevelopment; footings and foundation are now in
place and the developer is confident.the project will now move forward at a steady pace.
The other property owner affected by this delay, Syndicate Sales, has been asked to
provide a letter stating their agreement with the new terms. SSI properties is no longer
involved and is released from this agreement.
Supporting Documents
• men nt to PUD/Development Agreement
ersten Elverum
Director of Planning & Development
Financial Impact: $ 0 Budgeted: Y/N Source:
Related Documents (CIP, ERP, etc.):
Notes:
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AMENDMENT TO PUD/DEVELOPMENT AGREEMENT
This Amendment to PUD/Development Agreement (this "Amendment") is made and
executed this day of October, 2014, by Mokabaka LLC, a limited liability company under the
laws of the State of Minnesota ("Developer"), and the City of Hopkins, a municipal corporation
under the laws of Minnesota ("City").
RECITALS
A. On November 20, 2013, SSI Properties, Inc., a corporation under the laws of
California ("SSI"), Developer and the City entered into a PUD/Development, Agreement (the
"PUD Agreement") stating the terms and conditions of the City's approval of PUD zoning and a
Development Plan for the development of certain real property legally described in Exhibit A
attached hereto (the "Real Property"). The PUD Agreement was filed for record on November
27, 2013, as Hennepin County Registrar of Titles Document No. T05135961. By a Quitclaim
Deed dated _, 2014, and recorded 2014, as Hennepin County Registrar of
Titles Document No. SSI transferred fee title to the Real Property to Developer.
B. Paragraph I1 of the PUD Agreement states that Developer is to commence
construction of the Improvements (as defined in the PUD Agreement) and development of the
Real Property in accordance with the terms and conditions of the PUD Agreement no later than
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December 1, 2013, and substantially complete construction within 18 months thereafter.
Developer timely commenced construction of the Improvements, but will not substantially
complete construction within 18 months of December 1, 2013. Developer has requested that the
City approve the extension of the date for substantial completion of construction of the
Improvements to May 31, 2016. The City has approved that extension on the condition that
Developer executes this Amendment and records the same as servitude upon the title to the Real
Property.
NOW, THEREFORE, in consideration of the foregoing Recitals, which are incorporated
in and made a part of this Amendment, Developer and the City agree the PUD Agreement is
amended as follows:
1. Defined Terms. All words and phrases defined in the PUD Agreement shall,
when used in this Amendment, have the same meanings stated in the PUD Agreement unless the
context clearly requires a different meaning. However, when used in the PUD Agreement, the
word "Owner" shall mean and refer only to Developer, and not SSI. All references to the "PUD
Agreement" shall mean and refer to the PUD Agreement and this Amendment, collectively.
2. Amendment of Paragraph 11 of PUD Agreement. Paragraph 11 of the PUD
Agreement is deleted in its entirety and replaced with the following new paragraph 1.1:
11. Time of Performance. Developer shall commence construction of the
Improvements and the development of the Real Property in accordance with the terms
and conditions of this Development Agreement no later than December 1, 2013, and shall
substantially complete construction of the Improvements and development of the Real
Property no later than May 31, 2016.
3. Integration. This Amendment is incorporated in and made a part of the PUD
Agreement in its entirety. The PUD Agreement shall remain in effect in all of its terms,
covenants and conditions as modified by this Amendment.
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IN WITNESS WHEREOF, Developer and the City have executed this Amendment
effective as of the date and year first above written.
Developer
MOKABAKA LLC
By
Its
STATE OF MINNESOTA
ss.
COUNTY OF
The foregoing instrument was acknowledged before me this day of
2014, by
the , of Mokabaka LLC, a limited liability company under the
laws of the State of Minnesota, on behalf of the limited liability company.
Notary Public
CITY OF HOPKINS
By
Eugene J. Maxwell
Its Mayor
By
Michael J. Momson
Its - City Manager
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7,—
STATE OF MINNESOTA
ss
COUNTY OF HENNEPIN
The foregoing instrument. was acknowledged before me this day of
5 2014, by Eugene J. Maxwell, the Mayor, and Michael J. Mornson,
the City Manager, of The City of Hopkins, a municipal corporation, under the laws of the State
of Minnesota, on behalf of the municipal corporation.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Hoff, Barry & Kozar, P.A.
775 Prairie Center Drive Ste. 160
Eden Prairie, MN 55344
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MORTGAGEE'S CONSENT
a the mortgagee named in that certain
Mortgage dated 2013, which was recorded 2013, at Hennepin County as
Hennepin County Registrar of Titles Document No. hereby consents to the
foregoing Amendment to PUD/Development Agreement and agrees that said Mortgage shall be
subject and subordinate to said Amendment to PUD/Development Agreement.
By
Its
STATE OF MINNESOTA
ss.
COUNTY OF
The foregoing instrument was acknowledged before me this day of
2014, by the
and the
of a under the laws of the
on behalf of the
Notary Public
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EXHIBIT A
LEGAL DESCRIPTION OF REAL PROPERTY
Lot 1, Block 1, Dorholt Addition, Hennepin County, Minnesota
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