CR 05-101 Development Agreement - Block 64 Project
CITY OF
July 19,2005
m
HOPKINS
Council Report 2005-101
DEVELOPMENT AGREEMENT - BLOCK 64 PROJECT
Proposed Action
Stall recommends approval of the following molt on: approve contract for private redevelopment between
GPS Development. LLC, and the Housing and Redevelopment Authontv In and For the City of Hopkins.
It is understood that with this action staff is authorized to make minor changes to the agreementthat do
not affect the overall intent of the agreement. .
Overview
GPS Development is planning to undertake a mixed-use redevelopment project on the block bounded by
Fifth and Sixth Avenues North, north of Mainstreet and south of Flrst Street North (Block 64). The
project as detailed would involve the construction of approximately 220 condominium units and 6,800
square feet of retail space. GPS is requesting tax increment assistance to make the project financially
feasible.
The proposed action approves the following:
* Execution of a development agreement with GPS Development, LLC
* Execulton of a tax Increment revenue note (pay-as-you-go note)
The development agreement details the responsibilities of both the Clty/HRA and the developer as relates
to this project. The agreement was prepared by Bob Deike of Bradley & Deike. Specifically addressed
are the following:
" Scope of work
* Parameters ofTIF assistance
* Timing for completion of various actions to facilitate the project
* Default provision
* Specific requirements to be satisfied by GPS Development before the City would utilize its
eminent domain authority to acquire property not secured through a negotiated purchase
A summary of the major business points of the development, which has been prepared by Mr. Deike, is
attached to the repOlt. The project as proposed meets the requirements of the City's tax increment
financing policy.
To facilitate the project, the redevelopment parcels would be placed into a tax increment district. On July
26. the City Council and HRA will conSider action on approval of l' ax Increment District 1-3. The
project meets the City's tax increment policy.
Supporting Documents
Financial Impact: $ 0 N/A _ Budgeted: Y/N _ Source:
Related Documents (CIP, ERP, etc.):
Notes:
Council Report 2005-101, July 19,2005 - Page 2
Alternatives
The City Council has the following alternatives regarding this action:
. Approve the action as recommended by staff.
. Continue the item for additional information. With this action the City Council needs to detail
what additional action is required.
. Deny the action. It would be assumed with this action that the City Council is not mterested in
proceeding with the subject project.