II. 2. Approve minutes of the July 24, 2015, special meetingUNOFFICIAL
MINUTES OF HOPKINS HRA SPECIAL MEETING
July 24, 2015
A special meeting of the Hopkins Housing and Redevelopment
Authority was held July 24, 2015, at Hopkins City Hall. Present
were Chairman Eugene Maxwell, Commissioners Jason Gadd, Kristi
Halverson and Aaron Kuznia. Commissioner Molly Cummings was
absent. Also present was Assistant Executive Director Kersten
Elverum.
I. CALL TO ORDER
The meeting was called to order at noon.
II. NEW BUSINESS
1. Approve Assignment and Assumption Agreement and Estoppel
Certificate for Marketplace & Main
Ms. Elverum explained that Tax Increment District 1-4 was
created to facilitate redevelopment of Hopkins Honda Body
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Shop/used car sales between 6 and 8 Avenues in 2006, and
later sold to Marketplace Holdings, Inc., which developed 53
apartments, 5,500 square feet of retail space and 7 townhomes.
Tax Increment Financing (TIF) was pledged through two notes
with original principal amounts of $1 million and $360,000,
respectively. The current holder of the TIF notes,
Marketplace Holdings, Inc., is selling the property to Doran
Marketplace, LLC, who has required the TIF to be transferred
with no recourse associated with the look-back provisions in
the redevelopment agreement. To give the buyer assurances,
the HRA has been requested to consent to the Assignment and
Assumption Agreement and Estoppel Certificate and clearly
state that the HRA agrees to look solely to the seller for
payment of look-back amounts. Currently there is disagreement
about what is owed under the look-back provisions; therefore,
$176,000 will be escrowed at closing and the final amount
determined at a later date. Staff is requesting the authority
to execute the documents necessary for the sale, including an
Escrow Agreement for the look-back funds.
Ms. Elverum explained that the first document acknowledges the
development agreement will be assumed and calls out that no
liability will be assumed by Doran Marketplace, LLC.
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MINUTES OF HOPKINS HRA SPECIAL MEETING, July 24, 2015 Page 2
The second document, an escrow agreement, holds $176,000 from
the sale under the look-back provisions to be released in
accordance with the terms of a written agreement between the
parties or in accordance with the terms of a court order.
The third and fourth agreements pertain to Phases I and II and
confirm their approval and assignment. Staff is asking for
authorization to make modifications to these or other
documents needed for closing.
Mayor Maxwell asked whether the easement deal was finalized.
Ms. Elverum stated she believes it has been.
Commissioner Gadd asked whether the $176,000 figure, if deemed
to be more, could be changed. Ms. Elverum stated that the
escrow and other agreements would allow for that to happen.
Commissioner Gadd moved, Commissioner Kuznia seconded, to
approve the Assignment and Assumption Agreement and Estoppel
Certificate for Marketplace & Main and authorize execution of
consent and additional documents needed to complete the sale,
including an escrow agreement, and the assignment of the Phase
I and Phase II TIF notes. The motion was approved
unanimously.
III. ADJOURNMENT
Commissioner Halverson moved, Commissioner Kuznia seconded, to
adjourn the meeting. The motion was approved unanimously. The
meeting adjourned at 12:08 p.m.
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Eugene J. Maxwell, Chairman
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Kersten Elverum
Assistant Executive Director