CR 96-48 Creation Tax Increment District 2-8•
March 8, 1996
Proposed Action
Staff recommends approval of the following motion, subject to staff conditions:
Approval of Resolution 96 -23 adopting the document entitled "Tax Increment Financing Plan for
Tax Increment Financing District 2 -8." dated February 13, 1996.
Approval of Resolution 96 -24. authorizing execution of a development agreement between the HRA
and Larry C. Barenbaum and Doug M. Karon (Diamond Laboratories. Inc.).
Overview
Diamond Laboratories is proposing to construct approximately 24,000 square feet of office/warehouse
building on the former M. 13. Hagen Little League field. They are a distribution center for retail jewelry
products, which currently employs approximately 40 full -time people. They are currently located in
Golden Valley, and would relocate and expand their operation in Hopkins upon completion of their new
• facility. The HRA has provided approvals of a preliminary and final tax increment application for this
project.
At the February Zoning and Nanning Commission meeting, a resolution was approved stating that the
Tax Increment Financing Plan for Tax Increment Financing District 2 -8 is in compliance with the
existing land use and Comprehensive Plan.
Primary Issues to Consider
Supporting Documents
.9 5
P K
CREATION OF TAX INCREMENT DISTRICT 2 -8 AND
APPROVAL OF DEVELOPMENT AGREEMENT
(Diamond Laboratories Project)
o What are the specifics of the development agreement between the HRA and Larry C.
Barenbaum/Doug M. Karon?
o What are the specifics of the Tax Increment Plan?
o Are there any other issues with regard to this project?
o Were any comments received from either the County or School District regarding this issue?
o Resolution 96 -23
o Tax Increment Financing Plan 2 -8
o Resolution 96 -24
o Development Agreement between the HRA and Larry C. Barenbaum/Doug M. Karon
o Memo from Hennepin County
Paul T. Steinman, Economic Development Specialist
Council Report 96 -48
Council Report 96-48 - Page 2
Primary Issues to Consider
Based on the recommended action, the Council has the following primary issues to consider:
o What are the specifics of the development agreement between the HRA and Larry C.
Barenbaum/Doug M. Karon (Diamond Laboratories)?
A summary of the specific details of the development agreement are as follows:
• The redeveloper agrees to construct an office /warehouse building of at least 24,000 square
feet.
The redeveloper agrees to pay the Hopkins Little League, Inc., $10,000 for the purchase
of the property.
The City agrees to forgive a $53,000 debt owed by the Hopkins Little League, Inc.,
regarding their relocation from the redevelopment property, with the understanding that
this amount will then be repaid to the City through tax increments from the project.
The City agrees to provide $141,000 on a pay -as- you -go basis to the redeveloper for costs
incurred due to general soils corrections issues.
The redeveloper agrees to start the project within 60 days of receiving Watershed District
approval.
The redeveloper agrees to complete the project prior to December 31, 1996.
Funds generated through tax increment on an annual basis shall be provided in this order
of priority:
• First 10 percent Administration
• Second Repay City for $53,000 relocation costs
• Third Repay developer $141,000 for soils conditions
The developer would be repaid based on a note attached to the agreement over an
approximately eight -year period at 8.5 percent interest. The actual number of years will
be determined when the project is completed and the real value can be assessed. Staff is
working under the assumption of a specific assessed value.
o What are the specifics of the Tax Increment Plan?
The specifics of the Tax Increment Plan are as follows:
• TIF District 2 -8 is a "redevelopment" tax increment district.
•
•
Council Report 96 -48 - Page 3
The certified base value is assumed to be $10,000 - primarily established by the sale price
of the land.
• TIF District 2 -8 will be used to provide funding for general soils conditions related costs
to a maximum of $141,000.
TIF District 2 -8 will be used to provide for relocation of the Little League in an amount
not to exceed $53,000.
With the amount of tax increment estimated to be generated, it will take approximately
eight to nine years to pay back the $141,000, the $53,000, and the allowed 10 percent
administration of the District.
The true assessed value will be determined upon completion of the project or January 1,
1997. This real assessed value will determine the exact amount of TIF generated and, in
turn, the exact number of years required to pay back the City and developer.
The City is under no obligation to pay the developer if, for any reason, there is a shortfall
in a given year.
o What are the other issues with regard to this project?
Basically, there is only one issue yet to resolve prior to actual closing - -that is, approval by the
Nine Mile Creek Watershed District of this project. The redeveloper has indicated he will be
presenting this project to the Watershed District on Wednesday, March 20, for final
approvals. At the time of closing the following will be undertaken:
• Purchase of the property for $10,000 by the developer.
• The City to provide a written guarantee to Little League, Inc., regarding relinquishment
of the 53,000 debt.
• The developer to close on his financing to build the project (approximately $900,000).
• The City to certify Tax Increment District 2 -8.
o Were any comments received from either the County or School District regarding this
issue?
Attached to this report is a memo from James Bourey, Hennepin County Administrator,
regarding the proposed action. His recommendation to the County Commissioners is that
TIF District 2 -8 falls within the Hennepin County guidelines for acceptable use of TIF, and
that Hennepin County should not have objections to this proposal. Bourey asked that the
attached memo be entered into the public record at the TIF hearing in order to reflect the
position of the County. There were no comments received from Hopkins School District 270
on this issue.
• Alternatives
Council Report 96 -48 - Page 4
The Council has the following alternatives regarding this issue:
1. Approve Resolutions 96 -23 and 96 -24 as recommended by staff.
2. Continue for additional information. The implications of this alternative would be that a
delay would be caused in the developer's start of construction.
DATE: February 29, 1996
TO: Board of County Commissioners
FROM: James M. Bourey, County Administration
SUBJECT: Hopkins TIF District No. 2 -8
1. Proposed Action
III. Fiscal lmpact
IV. Recommendation
6
On March 19, 1996 at 7:30 p.m. the Hopkins City Council will conduct a public hearing
at City Hall on the adoption of proposed TIF District No. 2 -8.
RarrW Pya
II. District and Project Description
Proposed TIF District No. 2 -8 is a redevelopment district consisting of one parcel of
land. The site is currently used as a little league baseball field and requires substantial
soil correction to accommodate development. The parcel is located at the northwest
quadrant of the intersection of Sixth Street South and Eleventh Avenue South in
Hopkins. The plan indicates that total estimated public costs of 5359,000 will be
incurred for land acquisition, soil correction and other development costs.
A 24,000 square foot commercial facility is projected for this district and will employ
about 30 persons. The property is currently worth about 510,000 and would yield a
property tax of 5460 per year if it were taxable. After development the property will
generate about $40,000 in taxes annually. About $10,400 annually is captured from
the county portion of the tax levy. The captured tax capacity of this district
constitutes only .003 percent of the Hennepin County tax base.
The proposed TIF District No. 2 -8 falls within Hennepin County guidelines for
acceptable use of TIF. Accordingly, I recommend that Hennepin County should not
have objections to this proposal. A copy of this report will be forwarded to the City
of Hopkins with a request that it be entered into the public record of the TIF hearing
on No. 2 -8 to reflect the position of the county.
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 96-23
RESOLUTION APPROVING A TAX INCREMENT
FINANCING PLAN FOR TAX INCREMENT
REDEVELOPMENT DISTRICT NUMBER 2 -8 PURSUANT
TO MINNESOTA STATUTES, SECTIONS 469.174 -.179.
WHEREAS, the Housing and Redevelopment Authority In and For the City of Hopkins
(the "Authority ") and the City of Hopkins, Minnesota (the "City "), have the legal authority to
create redevelopment projects pursuant to Minnesota Statutes, Section 469.001 to 469.047,
inclusive.
WHEREAS, The Authority and the City have created the Authority's Redevelopment
Projects Numbers 1 and 2 (collectively, the "Project "); and
WHEREAS, pursuant to Minnesota Statutes, section 469.174 to 469.179, the Authority
and the City have the legal authority to create tax increment financing districts within
redevelopment projects to finance the public redevelopment costs of such redevelopment
projects; and
WHEREAS, the Authority has caused to be prepared a tax increment financing plan (the
"Tax Increment Plan") in connection with the proposed creation of its Tax Increment Financing
District Number 2 -8 (the "District "); and
WHEREAS, the creation of the Project and District allows the Authority to redevelop a
parcel of property containing substandard buildings and improvements and to assist in the
development of an approximately 24,000 square foot office /warehouse facility, thereby creating a
number of employment positions within the City and the State of Minnesota; and
WHEREAS, the Authority has submitted a statement of the fiscal impact of creating the
District to the School Board of the affected school district and to the Board of Commissioners of
Hennepin County as required pursuant to Minnesota Statutes, section 469.175, subd. 2.
WHEREAS, the City Council has held a public hearing on the questions of approval of
the Tax Increment Plan as required by law.
NOW, THEREFORE, be it hereby resolved by the City Council of the City of Hopkins
(the "Council ") as follows:
(a) The Council hereby adopts the municipal findings and reasons contained in the
Tax Increment Plan and finds and determines that the creation of the District is in
the public interest and to the benefit of the health, safety and welfare of the City.
(b) That the Tax Increment Plan has been reviewed by the City Council and the
City's Planning Commission and has been found to conform to the general plan
for the development of the City as whole.
That the Tax Increment Plan will afford maximum opportunity, consistent with
the sound needs of the City as a whole for the development of the Project and
District by private enterprise. The plan will allow the Authority to assist in the
development by private enterprise of property that is currently underutilized and
contains buildings and improvements that are substandard and in need of
substantial renovation or removal into an office /warehouse facility offering
employment opportunities within the City,
(d) That the District is a redevelopment tax increment financing district as defined in
Minnesota Statutes, section 469.174, subd. 10. The District contains one parcel of
property and that parcel is occupied by buildings and improvements. 100% of the
buildings on the parcel in the District are structurally substandard as defined in
Section 469.174, subd. 10.
(c)
(e)
That the proposed development, in the opinion of the Council, would not occur
solely through private investment within the reasonably foreseeable future, that
the land in the Project would not be made available without the financial
assistance to be sought, and that the increased market value of the site that could
reasonably be expected to occur without the use of tax increment financing would
be less than the increase in the market value estimated to result from the proposed
development after subtracting the present value of the projected tax increments for
the maximum duration of the district .permitted by the Tax Increment Plan. Due
to the high cost of land acquisition and preparation and the competition from other
states and municipalities to attract new industry, the use of tax increment to
induce private industry to undertake the proposed development in the City is
(f)
(g)
ATTEST:
deemed to be necessary. It is estimated that the development will result in an
increase in the market value of the site of approximately $637,035 more than its
present market value with the use of tax increment. The City has no reason to
believe that the site would be developed in the foreseeable future resulting in an
increase in the market value without the use of tax increment. Therefore, the
estimated increase in the market value ($637,035), minus the present value of the
tax increment to be generated ($353,976), is approximately $283,059 greater than
the increase in market value expected to occur without the use of tax increment
($0.00).
The Council makes the election to make the local contribution defined in
Minnesota Statutes, Section 273.1399, subd. 6(d).
The Tax Increment Plan is hereby approved and adopted by the Council in
substantially the form presented to the Council.
(h) The Authority is hereby authorized to file a copy of the and Tax Increment Plan
with the Minnesota Department of Revenue and to take all actions necessary to
implement the provisions of the Redevelopment Plan and Tax Increment Plan.
Approved by the City Council of the City of Hopkins this 19` day of March, 1996.
James A. Genellie, City Clerk
Charles D. Redepenning, Mayor
ATTEST:
James A. Genellie, City Clerk
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 96 -24
RESOLUTION APPROVING A CONTRACT FOR
PRIVATE REDEVELOPMENT BETWEEN THE HOUSING
AND REDEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF HOPKINS, MINNESOTA AND LARRY C.
BARENBAUM AND DOUG M. KARON
WHEREAS, the Housing and Redevelopment Authority In and For the City of Hopkins,
Minnesota (the "Authority ") and the City of Hopkins, Minnesota (the "City'), have the legal
authority to create redevelopment projects pursuant to Minnesota Statutes, Section 469.001 to
469.047, inclusive, and to create tax increment financing districts within such redevelopment
projects pursuant to Minnesota Statutes Sections 469.174 .179, inclusive.
WHEREAS, the Authority and the City have approved the creation of the Authority's
Redevelopment Projects Nos. 1 and 2 (collectively, the "Project") and Tax Increment Financing
District No. 2 -8 (the "District "); and
WHEREAS, the tax increment financing plan for the District (the `Plan ") contemplates
the development of certain real property within the City through the construction of an
office /warehouse facility located thereon; and
WHEREAS, there has been approved by the Authority, conditioned on approval by the
City Council, a Contract for Private Redevelopment (the "Contract ") proposed to be executed
between the Authority and Larry C. Barenbaum and Doug M. Karon, providing for the
construction of the office /warehouse facility referenced in the Plan; and
WHEREAS, the City has reviewed the proposed Contract and has determined that
execution of the Contract is in its best interests and will serve to accomplish the objectives set
forth in the Plan.
NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Hopkins,
Minnesota, that the execution of the Contract by the Authority is hereby approved.
Approved by the City Council of the City of Hopkins this 19t day of March, 1996.
Charles D. Redepenning, Mayor
Tax Increment Financing Plan
for
Tax Increment Financing District No. 2 -8
(A Redevelopment District)
Housing and Redevelopment Authority in and for the City of Hopkins
Hennepin County
City of Hopkins, Minnesota
Prepared: December 29, 1995
Revised: February 13, 1996
Adopted:
Prepared by:
PUBLICORP, INC.
in association with EHLERS AND ASSOCIATES, INC.
2950 Norwest Center
90 South Seventh Street
Minneapolis, MN 55402 -4100
(612) 339-8291
Section A.
Section B.
Section C.
Section D.
Section E.
Section F.
Section G.
Section H.
Section I.
Section J.
Section K.
Section L.
Section M.
Section N.
Section O.
Section P.
Section Q.
Section R.
Section S.
Section T.
Section U.
Section V.
Section W.
Section X.
Section Y.
Section Z.
Section AA.
Section AB.
Section AC.
Section AD.
EXHIBIT A
EXHIBIT B
TABLE OF CONTENTS
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 2 -8
Statutory Authority 1
Statement of Objectives 1
Redevelopment Plan Overview 2
Description of Property in District No. 2 -8 3
Classification of the Tax Increment Financing District 3
Property To Be Acquired 4
Estimate of Costs 4
Estimated Amount of Loan/Bonded Indebtedness 5
Sources of Revenue 5
Original Tax Capacity 5
Amount of Captured Tax Capacity 5
Duration of the District 6
Estimated Impact on Other Taxing Jurisdictions 6
Modifications of the Tax Increment Financing District 7
Administrative Expenses 7
Duration of Tax Increment Financing Districts 7
Limitation on Qualification of Property in Tax Increment District
Not Subject to Improvement 7
Limitation on the Use of Tax Increment 8
Notification of Prior Planned Improvements 8
Excess Tax Increments 9
Requirement for Agreements with the Developer 9
Assessment Agreements 9
Administration of District and Maintenance of the Tax Increment Account 10
Financial Reporting Requirements 10
Municipal Approval 10
County Road Costs 11
Fiscal Disparities Election 11
Reduction in State Tax Increment Financing Aid 12
Economic Development and Job Creation 13
Summary 13
Boundary Map of Tax Increment Financing District No. 2 -8 A -1
Cashflow Analysis and Base Value Analysis B -1
Tax Increment Financing District No. 2 -8
TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO. 2 -8
A. STATUTORY AUTHORITY
Within the City of Hopkins (the "City ") there exist areas where public involvement is necessary to
cause development or redevelopment to occur. To this end, the City Council established the
Hopkins Housing and Redevelopment Authority (the "Authority").
The City faces various existing land use problems that require corrective action by the City or
Authority before development by private enterprise becomes financially feasible or desirable. The
Authority and City are authorized to establish a tax increment district pursuant to Minnesota
Statutes, Section 469.174 to 469.179, inclusive, as amended, to assist in financing public costs
related to this project. Tax increments are derived only from the increased amount of taxes which
are paid on a parcel of property after the construction of a new structure on the parcel. Tax
increment districts encompass the parcels from which tax increments are paid for a period of time.
Below is the Tax Increment Financing Plan (the "Plan`) for Tax Increment Financing District No.
2 -8 ("District No. 2 -8 "). Other relevant information is contained in the Redevelopment Plan for
Redevelopment Project No. 1, originally adopted on June 30, 1970 and subsequently modified. A
modification of the Redevelopment Plan is contemplated in the Tax Increment Plan.
Redevelopment Project No. 1 includes the area proposed for District No. 2 -8. The Authority or the
City reserves the right to approve all or a portion of the property proposed to be included in District
No. 2 -8 on the date of the first public hearing, March 19, 1996.
B. STATEMENT OF OBJECTIVES
District No. 2 -8 consists of 1 parcel of land and adjacent and internal rights -of -way.
The current plans for the new development on the site include a 24,000 square foot commercial
facility.
District No. 2 -8 is expected to achieve many of the objectives set forth in the Redevelopment Plan
in regard to land use. These objectives include:
1. Promote and secure the prompt development of property in Redevelopment Project
No. 1 in a manner consistent with the Comprehensive Plan and with minimal adverse
impact on the environment, which property is currently blighted because of
obsolescence, dilapidation, deleterious land use, and other factors related to the
safety, health, morals and welfare of the City;
2. Promote and secure additional employment opportunities within Redevelopment
Project No. 1 and the City for residents of the City and the surrounding area, thereby
improving living standards and preventing unemployment and the Loss of skilled
labor and other human resources in the City;
Page 1
3. Secure the increase of property subject to taxation by the City, county, school
district, and other taxing jurisdictions in order to better enable such entities to pay
for public improvements and governmental services and programs required to be
provided by them;
4. Secure the construction and provide funds for the payment of the cost of public
activities or improvements in Redevelopment Project No. 1, which are necessary for
the orderly and beneficial development of the District;
5. Promote the concentration of appropriate development within Redevelopment
Project No. 1 in order to maintain the area in a manner compatible with its
accessibility and prominence in the City;
6. Encourage local business expansion, improvement, development and redevelopment,
when compatible with the Redevelopment Project Plan; and
7 Create a desirable and unique character within Redevelopment Project No. 1 through
quality land use alternatives and design in new and renovated buildings.
See Exhibit C for the data on the qualifications of the redevelopment tax increment financing
district.
C. REDEVELOPMENT PLAN OVERVIEW
1. Property to be Acquired - Selected property located within District No. 2 -8 is owned
by the City and is further described in Subsection F of this Plan.
2. Relocation - Complete relocation services are available pursuant to Minnesota
Statutes, Chapter 117 and other relevant state and federal laws.
3. Upon approval of the developer's plan relating to the project and completion of the
necessary legal requirements, the Authority may sell to the developer selected
properties it may acquire within District No. 2 -8.
4. The City or the Authority may perform or provide for some or all necessary
relocation, demolition, and required utilities and public streets work within District
No. 2 -8.
5. District No. 2 -8 contains property zoned commercialindustrial. All development in
the area will conform to applicable state and local codes and ordinances.
Tax Increment Financing District No. 2 -8
Page 2
D. DESCRIPTION OF PROPERTY IN DISTRICT NO. 2-8
District No. 2 -8 encompasses the parcel and all adjacent and interior right -of -ways as identified
below:
25417-22-24-0130
The City or the Authority reserves a right to approve all or a portion of the area of the parcel listed
as designation for District No. 2 -8.
See the map in Exhibit A for further information on the location of District No. 2 -8.
E. CLASSIFICATION OF THE TAX INCREMENT FINE NCING DISTRICT
The City and the Authority, in determining the need to create a tax increment financing district in
accordance with Minnesota Statutes, Section 469.174 to 469.179, as amended, inclusive, find that
District No. 2 -8 to be established is a redevelopment district pursuant to Minnesota Statutes, Section
469.174, Subdivision 10 as defined below:
(a)
(2) The property consists of vacant, unused, underused, inappropriately used, or
infrequently used railyards, rail storage facilities or excessive or vacated railroad
rights -of -way.
(b) For purposes of this subdivision, "structurally substandard" shall mean containing defects in
structural elements or a combination of deficiencies in essential utilities and facilities, light
and ventilation, fire protection including adequate egress, layout and condition of interior
partitions, or similar factors, which defects or deficiencies are of sufficient total significance
to justify substantial renovation or clearance.
A building is not structurally substandard if it is in compliance with the building code
applicable to new buildings or could be modified to satisfy the building code at a cost of
less than 15 percent of the cost of constructing a new structure of the same square footage
and type on the site. The municipality may find that a building is not disqualified as
structurally substandard under the preceding sentence on the basis of reasonably
available evidence, such as the size, type, and age of the building, the average cost of
plumbing, electrical, or structural repairs or other similar reliable evidence. If the
evidence supports a reasonable conclusion that the building is not disqualified as
structurally substandard, the municipality may make such a determination without an
interior inspection or an independent, expert appraisal of the cost of repair and
rehabilitation of the building...
Tax Increment Financing District No. 2 -8
"Redevelopment district" means a type of tax increment financing district consisting of a
project, or portions of a project, within which the authority finds by resolution that one of the
following conditions, reasonably distributed throughout the district, exists:
(1) parcels consisting of 70 percent of the area in the district are occupied by buildings,
streets, utilities, or other improvements and more than 50 percent of the buildings,
not including outbuildings, are structurally substandard to a degree requiring
substantial renovation or clearance; or
Page 3
(c) For purposes of this subdivision, a parcel is not occupied by buildings, streets, utilities or
other improvements until 15 percent of the area of the parcel contains improvements.
The 1 parcel has been investigated by City and Authority staff and consultants and District No. 2 -8 has been
found to meet all requirements of a redevelopment district.
1. District No. 2-8 consists of 1 parcel.
2. An inventory of the parcel shows that at least 100 percent of the parcel is occupied as defined in the Act.
3. An inspection of the buildings located within District No. 2 -8 finds that at least 100 percent of the
buildings are structurally substandard as defined in the Act.
F. PROPERTY TO BE ACOUIRED
The Authorityanay acquire all parcels within District No. 2 -8.
G. ESTIMATE OF COSTS
The estimate of public costs associated with District No. 2 -8 are outlined in the following line item budget:
Tax Increment Financing District No. 2 -8
Estimate of Public Costs
Qualified Costs
Land Acquisition, Demolition, and Other Development Costs $359,000
Total Estimated Public Costs: $359,000
Capitalized interest and other interest payments on tax increment bonds and obligations are also considered
to be public costs in addition to the above referenced estimate of public costs. Interest payments and
capitalized interest will be determined at the time of issuance of the bonds and obligations and are dependent
on interest rates in effect at such time. In addition, administration costs to cover city staff and overhead and
various consulting fees in an amount not to exceed 10% of total tax increment will be funded with tax
increments from District No. 2 -8 in addition to above mentioned costs.
To the extent tax increment from District No. 2 -8 in any year exceeds the amount necessary to finance
activities undertaken in accord with this Plan (including TIF Bond debt service and any other commitments,
the Authority may contribute such excess to the City's commercial rehabilitation loan fund, the City's facade
loan/grant fund, the City's sign rehabilitation loan fund, or all three). Contribution to any of these funds will
be placed in an account maintained for loans used exclusively within Redevelopment Project No. 1.
Any funds to be expended outside the boundaries of District No. 2 -8, but within the boundaries of
Redevelopment Project No. 1, will be less than 25 percent of total tax increment generated by District No.
2 -8, including administrative costs. Subject to that limitation, and the limitations as described in Section R.
the tax increment from District No. 2 -8 may be used to pay for public costs outlined in budgets for Tax
Increment Financing Districts No. 1 - 1 and 2 - 1 (whether or not such expenditures exceed the total budget for
this plan identified above). Tax increments from Tax Increment Financing District No. 1 -1 and 2 -1 may also
be used to pay for costs associated with public costs outlined in this Plan.
Page 4
H. ESTIMATED AMOUNT OF LOAN/BONDED INDEBTEDNESS
It is anticipated that the City or Authority may issue a revenue bond, general obligation bond, or other type
of obligation in one or more series to finance any or all of the total estimated Public Costs authorized to be
paid under Section G of this Plan.
I. SOURCES OF REVENUE
The major source of revenue to be used to finance public costs associated with the public development
projects in Redevelopment Project No. 1 is tax increment generated as a result of the taxation of the land and
improvements in District No. 2 -8, but may also include tax increments from District No. 1 -1 and District No.
2 -1. Tax increment financing refers to a funding technique that utilizes increases in valuation and the
property taxes attributable to new development to finance, or assist in the financing of public development
costs. Additional sources of revenue may include but are not limited to investment income and land sales
proceeds. This does not preclude the City, the Authority, or the developer from using other funds, at its
discretion, to pay such costs.
J. ORIGINAL TAX CAPACITY
Pursuant to Minnesota Statutes Section 469.174, Subdivision 7 and Section 469.177, Subdivision 1, the
Original Net Tax Capacity (OTC) for the District No. 2 -8 is based on the value placed on the property by the
assessor in 1994 for taxes payable 1995. The tax capacity as certified is estimated to be 460 for taxes payable
in 1995.
The original local tax rate for District No. 2 -8 will be the tax rate for taxes payable in 1995 of 146.572 %.
Each year, the Hennepin County Department of Property Tax and Public Records will measure the amount
of increase or decrease in the total tax capacity of District No. 2 -8 to calculate the tax increment payable to
the City and the Authority. In any year in which there is an increase in total tax capacity in the tax increment
financing district above the annual percentage of annual increase, a tax increment will be payable. In any
year in which the total tax capacity in District No. 2 -8 declines below the original tax capacity, no additional
valuation will be captured and no tax increment will be payable.
The County Auditor shall certify in each year after the date the OTC was certified, the amount the OTC has
increased or decreased as a result of:
1. change in tax exempt status of property;
2. reduction or enlargement of the geographic boundaries of the district;
3. change due to stipulations, adjustments, negotiated or court- ordered abatements;
4. change in the use of the property and classification; or
5. change in state law governing class rates.
K. AMOUNT OF CAPTURED TAX CAPACITY
Pursuant to Minnesota Statutes, Section 469.174 Subdivision 4 and Minnesota Statutes, Section 469.177,
Subdivision 2, the estimated Captured Net Tax Capacity (CTC) of District No. 2 -8, upon completion of all
phases of the project, will annually approximate 27,704. The City requests 100 percent of the available
increase in tax capacity for repayment of debt and current expenditures. The original tax capacity and project
tax capacity are estimated at current market values and class rates to be the total amount when all
development is in place and uses of the property have changed.
Tax Increment Financing District No. 2 -8 Page 5
ENTITY
Estimated Project Tax Capacity
less Original Tax Capacity
Estimated Captured Tax Capacity
The Authority elects the calculation of tax increment under Section 469.177, subd. 3(b), which means that
fiscal disparities contribution will be made front outside the District.
L. DURATION OF THE DISTRICT
Pursuant to Minnesota Statutes, Section 469.175, Subdivision 1, the duration of District No. 2 -8 must be
indicated within the Plan. The duration of District No. 2 -8 will be 25 years from payment of the first tax
increment expected in 1998. Thus, it is estimated that District No. 2 -8, including any modifications of the
Plan for subsequent phases or other changes, would terminate at the end of the year 2022. The City and the
Authority reserve the right to decertify District No. 2 -8 prior to the legally required date.
M. ESTIMATED IMPACT ON OTHER TAXING JURISDICTIONS
The estimated impact on other taxing jurisdictions assumes construction would have occurred without the
creation of District No. 2 -8. If the construction is a result of tax increment financing, the impact is $0 to other
entities. Notwithstanding the fact that the fiscal impact on the other taxing jurisdictions is $0 due to the fact
that the construction would not have occurred without the assistance of the city, the following estimated
impact of District No. 2 -8 would be as follows if the "but for" test was not met:
Hennepin County
City of Hopkins
School District No. 270
ENTITY
Hennepin County
City of Hopkins
School District No. 270'
Metropolitan Special Districts
Other Special Districts
TOTAL
Tax Increment Financing District No. 2 -8
IMPACT ON TAX BASE
ENTITY S
TOTAL NET
TAX CAPACITY
966,907,816
14,603,004
75,703,256
IMPACT ON TAX RATES
CURRENT
TAX RATE
.37454
.27191
.75076
.04453
.02398
1.46572
28,164
460
27,704
% OF CAPTURED
CAPTURED TAX CAPACITY
TO ENTITY TOTAL
TAX CAPACITY
27,704
27,704
27,704
.003%
.187%
.037%
CAPTURED POTENTIAL
TAX CAPACITY TAXES
27,704 10,376
27,704 7,533
27,704 20,799
27,704 - 1,234
27,704 664
40,606
The estimates listed above display captured tax capacity when all construction is completed. The tax rates
and tax capacities are the payable 1995 figures for all jurisdictions. District No. 2 -8 will be certified under
rates for tax year payable 1995.
Page 6
In addition, the impacts on School District No. 270 do not include the effect of state aids for education upon
school district funding
N. MODIFICATIONS OF THE TAX INCREMENT FINANCING DISTRICT
In accordance with Minnesota Statutes, Section 469.175, Subdivision 4, any reduction or enlargement of the
geographic area of the project or tax increment financing district, increase in amount of bonded indebtedness
to be incurred, including a determination to capitalize interest on debt if that determination was not a part of
the original plan, or to increase or decrease the amount of interest on the debt to be capitalized, increase in
the portion of the captured tax capacity to be retained by the City or Authority, increase in total estimated
tax increment expenditures or designation of additional property to be acquired by the City or Authority shall
be approved upon the notice and after the discussion, public hearing and findings required for approval of
the original plan. The geographic area of a tax increment financing district may be reduced, but shall not be
enlarged after five years following the date of certification of the original tax capacity by the county auditor
or by approximately April, 2000.
Modifications to the District No. 2 -8, in the form of a budget modification or an expansion of the boundaries,
will be recorded in this Plan.
O. LIMITATION ON ADMINISTRATIVE EXPENSES
In accordance with Minnesota Statutes, Section 469.174, Subdivision 14 and Minnesota Statutes, Section
469.176, Subdivision 3, administrative expenses means all expenditures of an authority other than amounts
paid for the purchase of land or amounts paid to contractors or others providing materials and services,
including architectural and engineering services, directly connected with the physical development of the real
property in the district, relocation benefits paid to or services provided for persons residing or businesses
located in the district or amounts used to pay interest on, fund a reserve for, or sell at a discount bonds issued
pursuant to Section 469.178. Administrative expenses include amounts paid for services provided by bond
counsel, fiscal consultants, and planning or economic development consultants. No tax increment shall be
used to pay any administrative expenses for a project which exceed ten percent of the total tax increment
expenditures authorized by the tax increment financing plan or the total tax increment expenditures for the
project, whichever is less.
Pursuant to Minnesota Statutes, Section 469.176, Subdivision 4h, tax increments may be used to pay for the
county's actual administrative expenses incurred in connection with District No. 2 -8. The county may require
payment of those expenses by February 15 of the year following the year the expenses were incurred.
P. DURATION OF TAX INCREMENT FINANCING DISTRICTS
Pursuant to Minnesota Statutes, Section 469.176, Subdivision 1, "no tax increment shall be paid to an
authority three years from the date of certification by the County Auditor unless within the three -year period
(1) bonds have been issued pursuant to Section 469.178, or in aid of a project pursuant to any other law,
except revenue bonds issued pursuant to Chapter 469.152 to 469.165, prior to the effective date of the Act;
or (2) the authority has acquired property within the district; or (3) the authority has constructed or caused
to be constructed public improvements within the district ... " The City or Authority must therefore issue
bonds, or acquire property, or construct or cause public improvements in District No. 2 -8 by approximately
April, 1998.
Q. LIMITATION ON QUALIFICATION OF PROPERTY IN TAX INCREMENT DISTRICT NOT
SUBJECT TO IMPROVEMENT
Tax increment Financing District No. 2 -8
Page 7
Pursuant to Minnesota Statutes, Section 469.176, Subdivision 6,
if, after four years from the date of certification of the original tax capacity of the tax increment financing
district pursuant to Minnesota tatutes Section 469.177, no demolition, rehabilitation or renovation of
property or other site preparation, including qualified improvement ofa street adjacent to a parcel but
not installation of utility service including sewer or water systems; has been commenced on a parcel
located within a tax increment financing district by the authority or by the owner of the parcel in
accordance with the tax increment financing plan, no additional tax increment may be taken from that
parcel and the original tax capacity of that parcel shall be excluded from the original tax capacity of the
tax increment financing district. If the authority or the owner of the parcel subsequently commences
demolition, rehabilitation or renovation or other site preparation on that parcel including improvement
ofa street adjacent to that parcel, in accordance with the tax increment financing plan, the authority shall
certify to the county auditor in the annual disclosure report that the activity has commenced. The county
auditor shall certify the tax capacity thereof as most recently certified by the commissioner of revenue and
add it to the original tax capacity of the tax increment financing district. The county auditor must enforce
the provisions of this subdivision... For purposes of this subdivision, qualified improvements are limited
to (1) construction or opening ofa new street, (2) relocation ofa street, and (3) substantial reconstruction
or rebuilding of an existing street.
R. LIMITATION ON THE USE OF TAX INCREMENT
Pursuant to Minnesota Statues, 469.176, Subd. 4, at least 90 percent of the revenues derived from tax
increments from a redevelopment district must be used to finance the cost of correcting conditions that allow
designation of redevelopment districts under section 469.174, Subdivision 10. These costs include acquiring
properties containing structurally substandard buildings or improvements, acquiring adjacent parcels
necessary to provide a site of sufficient size to permit development, demolition of structures, clearing of the
land and installation of utilities, roads, sidewallcs, and parking facilities for the site.
The revenues shall be used to finance or otherwise pay public redevelopment and housing development costs
pursuant to the HRA Act. These revenues shall not be used to circumvent any levy limit law. No revenues
derived from tax increment shall be used for the construction or renovation of a municipally owned building
used primarily and regularly for conducting the business of the municipality; this provision shall not prohibit
the use of revenues derived from tax increments for the construction or renovation of a parking structure, a
commons area used as a public park or a facility used for social, recreational or conference purposes and not
primarily for conducting the business of the municipality. For tax increment financing districts for which
certification was requested after April 30, 1990, pursuant to Minnesota Statutes, Section 469.1763,
Subdivisions 1 and 2, an amount equal to at least 75 percent of the revenue derived from tax increments from
the district's parcels must be expended on activities in the district.
S. NOTIFICATION OF PRIOR PLANNED IMPROVEMENTS
Pursuant to Minnesota Statutes, Section 469.177, Subdivision 4, the City and the Authority have reviewed
the area to be included in District No. 2 -8 and found no properties for which building permits have been
issued during the 18 months immediately preceding approval of the Plan by the City. If a building permit had
been issued within the 18 month period preceding approval of the plan by the City, the county auditors shall
increase the original tax capacity of the district by the valuation of the improvements for which the building
permit was issued.
Tax Increment Financing District No. 2 -8
Page 8
T. EXCESS TAX INCREMENTS
Pursuant to Minnesota Statutes, Section 469.176, Subdivision 2, in any year in which the tax increment
exceeds the amount necessary to pay the costs authorized by the tax increment plan, including the amount
necessary to cancel any tax levy as provided in Minnesota Statutes, Section 475.61, Subdivision 3, the
authority shall use the excess amount to do any of the following:
1. prepay the outstanding bonds;
2. discharge the pledge of tax increment therefore;
3. pay into an escrow account dedicated to the payment of such bond; or
4. return the excess to the County Auditor for redistribution to the respective taxing
jurisdictions in proportion to their tax capacity rate.
The Authority may also modify this Plan to authorize additional costs.
U. REOUIREMENT FOR AGREEMENTS WITH THE DEVELOPER
The City or Authority will review any Developer's proposal to determine its conformance with the
Redevelopment Plan and with applicable municipal ordinances and codes. To facilitate this effort, the
following documents may be requested for review and approval: site plan, construction, mechanical, and
electrical system drawings landscaping plan, grading and storm drainage plan, signage system plan, and any
other drawings or narrative deemed necessary by the City or Authority to demonstrate the conformance of
the development with city plans and ordinances. Land acquired by the City or Authority may be subject to
a Contract for Sale upon disposition to the Developer. The general requirements to be imposed upon the
developer by the Contract for Sale are:
To redevelop the land purchased in accordance with this development plan.
2. To commence and complete the building of improvements on the land within a reasonable
period of time as determined by the City or Authority.
3. Not to resell the land before improvements are made without the prior consent of the City
or Authority.
4. Not to discriminate on the basis of race, color, sex, creed or national origin on the sale, lease,
transfer or occupancy of the land purchased from the City or Authority.
The requirements to be imposed upon the Developer and the City's or Authority's exact participation in the
project will be negotiated as part of the Development Agreement between the City or the Authority and the
Developer.
V. ASSESSMENT AGREEMENTS
Pursuant to Minnesota Statutes, Section 469.177, Subdivision 8, the City or Authority may enter into an
agreement in recordable form with the owner of property within the tax increment financing district which
establishes a minimum market value of the land and improvements for the duration of the tax increment
district. The assessment agreement shall be presented to the county assessor who shall review the plans and
specifications for the improvements constructed, review the market value assigned to the land upon which
the improvements have been or will be constructed and, so long as the minimum market value contained in
Tax Increment Financing District No. 2 -8
Page 9
the assessment agreement appear, in the judgment of the assessor, to be a reasonable estimate, the assessor
may certify the minimum market value agreement.
W. ADMINISTRATION OF DISTRICT AND MAINTENANCE OF THE TAX INCREMENT
ACCOUNT
Administration of District No. 2 -8 will be handled by the City Manager or the Executive Director of the
Authority. The tax increment received as a result of increases in the tax capacity of District No. 2 -8 will be
maintained in a special account separate from all other municipal accounts and expended only upon
sanctioned municipal activities identified in the tax increment financing plan.
X. FINANCIAL REPORTING REQUIREMENTS
Pursuant to Minnesota Statutes, Section 469.175, Subdivisions 6, and 6a; an authority must file an annual
disclosure report for all tax increment financing districts with the Office of the State Auditor, the county
board, school board, and Department of Revenue.
Y. MUNICIPAL APPROVAL
Pursuant to Minnesota Statutes, Section 469.175, Subdivision 3, before or at the time of approval of the tax
increment financing plan, the municipality shall make the following findings and shall set forth in writing
the reasons and supporting facts for each determination.
1. Finding that the Tax Increment Financing District No. 2 -8 is a redevelopment district as defined in
Minnesota Statutes, Section 469.175, Subd. 10.
District No. 2 -8 consists of 1 parcel of property. The District qualifies as a redevelopment district
as defined in Minnesota Statutes, section 469.174, subd. 10.
2. Finding that the proposed development, in the opinion of the City Council and the Authority, would
not occur solely through private investment within the reasonably foreseeable future and, therefore,
the use of tax increment financing is deemed necessary.
Due to the high cost of redevelopment on parcels currently occupied by substandard buildings, the
incompatible land uses at close proximity, and the cost of financing the proposed improvements, this
project is feasible only through assistance, in part, from tax increment financing.
3. Finding that the Tax Increment Financing Plan conforms to the general plan for the development or
redevelopment of the municipality as a whole.
The site is appropriately zoned. The Tax Increment Financing Plan has been reviewed by the
Planning Commission and been found to confirm to the general development plan of the City.
4. Finding that the Tax Increment Financing Plan for Tax Increment Financing District No. 2 -8 will
afford maximum opportunity, consistent with the sound needs of the City as a whole, for the
development of Redevelopment Project No. 1 by private enterprise.
Tax Increment Financing District No. 2 -8
Page 10
The establishment of Tax Increment Financing District No. 2 -8 will result in increased employment
for the City and will eliminate a blighting influence in the downtown area.
Z. COUNTY ROAD COSTS
Pursuant to Minnesota Statutes, Section 469.175, Subdivision la, the county board may require the authority
to pay for all or part of the cost of county road improvements if the proposed development to be assisted by
tax increment will, in the judgement of the county, substantially increase the use of county roads requiring
construction of road improvements or other road costs and if the road improvements are not scheduled within
the next five years under a capital improvement plan or other county plan.
The improvements outlined in the Plan serve as notice to the county that the development of the commercial
retail facility will be assisted with tax increment. In the opinion of the City, the Authority, and consultants,
the proposed development will have little or no impact upon county roads. If the county elects to use
increments to improve county roads, it must notify the City within thirty days of receipt of this plan.
AA. FISCAL DISPARITIES ELECTION
Pursuant to Minnesota Statutes, Section 469.177, Subdivision 3, the governing body may elect one of two
methods to calculate fiscal disparities. It the calculations pursuant to Minnesota Statutes, Section 469.177,
subdivision 3, clause a, are followed the following method of computation shall apply:
(1 )
The original tax capacity and the current tax capacity shall be determined before the application of the fiscal
disparity provisions of Chapter 473F. Where the original tax capacity is equal to or greater than the current
tax capacity, there is no captured tax capacity and no tax increment determination. Where the original tax
capacity is less than the current tax capacity, the difference between the original tax capacity and the current
tax capacity is the captured tax capacity. This amount less any portion thereof which the authority has
designated in its tax increment financing plan, to share with the local taxing districts is the retained captured
tax capacity of the authority.
(2) The county auditor shall exclude the retained captured fax capacity of the authority from the taxable value
of the local taxing districts in determining local taxing district tax capacity rates. The tax capacity rates so
determined are to be extended against the retained captured tax capacity of the authority as well as the taxable
value of the local taxing districts. The tax generated by the extension of the lesser of (A) the local taxing
district tax capacity rates or (B) the original tax capacity rate to the retained captured tax capacity of the
authority is the tax increment of the authority.
If the calculations pursuant to Minnesota Statutes, Section 469.177, subdivision 3, clause b, are followed,
the following method of computation shall apply:
(1) The original tax capacity shall be determined before the application of the fiscal disparity provisions of
chapter 473F. The current tax capacity shall exclude any fiscal disparity commercial - industrial tax capacity
increase between the original year and the current year multiplied by the focal disparity ratio determined
pursuant to section 473F.08, subdivision 6. Where the original tax capacity is equal to or greater than the
current tax capacity, there is no captured tax capacity and no tax increment determination. Where the original
tax capacity is less than the current tax capacity, the difference between the original tax capacity and the
current tax capacity is the captured tax capacity. This amount less any portion thereof which the authority
has designated, in its tax increment financing plan, to share with the local taxing districts is the retained
captured tax capacity of the authority.
Tax Increment Financing District No. 2 -8
Page 11
•
(2) The county auditor shall exclude the retained captured tax capacity of the authority from the taxable value
of the local taxing districts in determining local taxing district tax capacity rates. The tax capacity rates so
determined are to be extended against the retained captured tax capacity of the authority as well as the taxable
value of the local taxing districts. The tax generated by the extension of the less of (A) the local taxing district
tax capacity rates or (B) the original tax capacity rate to the retained captured tax capacity of the authority
is the tax increment of the authority.
The Authority shall submit to the County Auditor at the time of the request for certification which method
of computation of fiscal disparities the authority elected. The City of Hopkins will choose to calculate fiscal
disparities by clause a.
According to Minnesota Statutes, Section 469.177, Subdivision 3:
(c) The method of computation of tax increment applied to a district pursuant to paragraph (a) or (b) shall
remain the same for the duration of the district, except that the governing body may elect to change its
election from the method of contputation in paragraph (a) to the method in paragraph (b).
AB. REDUCTION IN STATE TAX INCREMENT FINANCING AID
Pursuant to Minnesota Statues, Section 273.1399, for tax increment financing districts for which certification
was requested after April 30, 1990, a municipality incurs a reduction in state tax increment financing aid
(RISTIFA) applied to the municipality's Local Government Aids (LGA) first and, Homestead and
Agricultural Aid (HACA) second, in an amount equal to a formula based upon the equalized qualifying
captured tax capacity (QCTC) of the tax increment financing district.
Pursuant to Minnesota Statutes, Section 273.1399, Subdivision 6, for tax increment financing district certified
after June 30, 1994, the City may choose an option to the LGA -HACA penalty. A tax increment financing
district is exempt if the City elects at the time of approving the tax increment financing plan to make a
qualifying Local contribution. To qualify for the exemption in each year, the City must make a qualifying
local contribution to the project of a certain percentage. The local contribution for a redevelopment district
is 7.5 percent. The maximum local contribution for all districts in the City is limited to two percent of the
City's net tax capacity.
The amount of the local contribution must be made out of unrestricted money of the authority or
municipality, such as the general fund, a property tax levy, or a federal or a state grand -in -aid which may be
spent for general government purposes. The local contribution may not be made, directly or indirectly, with
tax increments or developer payments. The local contribution must be used to pay project costs and cannot
be used for general government purposes.
The City elects to make the annual local contribution to the project to exempt itself from the LGA -HACA
penalty.
Tax Increment financing District No. 2 -8
Page 12
AC. ECONOMIC DEVELOPMENT AND JOB CREATION
To the extent applicable, the City agrees to comply with Minnesota Statues, Section 1167.991, which states
that a business receiving state or local government assistance for economic development or job growth
purposes, including tax increment financing, must create a net increase in jobs and meet wage level goals in
Minnesota within two years of receiving assistance (See Appendix D).
AD. SUMMARY
The City of Hopkins is establishing Tax Increment Financing District No. 2 -8 to preserve and enhance the
tax base, redevelopment substandard areas, and increase employment of the City. The Tax Increment
Financing Plan for Tax Increment Financing District No. 2 -8 was prepared by Ehlers and Associates, Inc.,
2950 Norwest Center, 90 South Seventh Street, Minneapolis, Minnesota 55402 -4100, telephone (612) 339-
8291.
Tax Increment Financing District No. 2 -8
Page 13
1
Tax Increment Financing District No. 2 -8
EXHIBIT A
Boundary Map of Tax Increment Financing District No. 2 -8
as established December 29, 1995
Page A -I
Z )
12/28/9:
16:12
91 (12031. 1.
0
132.8
51 b1
0
WA. 1 .
re ta:%
Pi
&IV 111/61111F
no alma
7 l4 ? . s'
'&t OCt • 140 ' 9:
30
33 in
51793 TFI` 1
signy. DOC Ile 305(785
ION
its
FAX 612 935 1834
�. (i a rr
tee
CITY OF HOPKI ;5
U002/003
).01 i
(5)
9 6°
5:R
et
9
a
V
1
1-
a
Tax Increment Financing District No. 2 -8
EXHIBIT B
Cashflow Analysis and Base Value Analysis
Page B -I
00.13
02)13/95
Inflation Rate:
Pay -As- You -Go Interest Rate:
Tax Extension Rate:
Fiscal Disparities Rate:
Base Ball Lot
TOTAL
Type of
Use
Comm.
Total
24 000
City of HOPKINS - BASEBALL PROJECT
T.I.F. CASH FLOW ASSUMPTIONS
BASE VALUE INFORMATION
PROJECT INFORMATION
Type of Tax Increment District:
Type of Development:
Total Taxes Per Total Tax
Sq. Ft. Sq. Ft. Taxes Capacity
24,000 $1.72 41,280 28,164
Current Market Value - Est.
New Market Value - Est.
Difference
Present Value of Tax Increment
Difference
Value Likely to Occur Without TIF
Difference
Prepared by Pubkcorp Inc.
Market
Value
Tax
Capacity
10,000
10,000
460
460
CIl
41 280 28,164 647 035
0.0000%
8.500%
1.465720 Pay 95
0.00%
New Redevelopment District
Commercial
Market Date
Value Assessable
647,035 1997
But For Analysis
10,000
647,035
637,035
353,976
283,059
0
283,059
Pay 94
4.6000% Pay 94
Date
Payable
1998
Pa9a
BBPLAN
140100 -13
c2J1a95
Base
lip PERIOD BEGINNING Tax
Yrs. Mth. Yr. Ca•
0.0 02 -01 1996 460
0.0 08 -01 1996 460
0.0 02 -01 1997 460
0.0 08-01 1997 460
0.0 02 -01 1998 460
0.5 08 -01 1998 460
1M 02 -01 1999 460
1.5 08 -01 1999 460
2.0 02 -01 2000 460
2.5 08-01 2000 460
3.0 02 -01 2001 460
3.5 08 -01 2001 460
4.0 02 -01 2002 460
4.5 08 -01 2002 460
5.0 02 -01 2003 460
5.5 08 -01 2003 460
6.0 02 -01 2004 460
6.5 08-01 2004 460
7.0 02-01 2005 460
7.5 08-01 2005 460
8.0 02 -01 2006 - 460
8.5 08-01 2006 460
9.0 02 -01 2007 460
95 08-01 2007 460
10.0 02 -01 2008 460
1 10.5 08-01 2008 460
11.0 02-01 2009 460
11.5 08-01 2009 460
12.0 02 -01 2010 460
• 12.5 08.01 2010 460
13.0 02-01 2011 460
13.5 08-01 2011 460
14.0 02 -01 2012 460
14.5 08-01 2012 460
15.0 02 -01 2013 460
15.5 08-01 2013 460
16.0 02 -01 2014 460
16.5 08 -01 2014 460
17.0 02 -01 2015 460
17.5 08-01 2015 460
18.0 02 -01 2016 460
18.5 08 -01 2016 460
19.0 02 -01 2017 460
19.5 08 -01 2017 460
20.0 02 -01 2018 460
20.5 08 -01 2018 460
21.0 02 -01 2019 460
21.5 08 -01 2019 460
22.0 02 -01 2020 460
22.5 08 -01 2020
23.0 02 -01 2021
23.5 08 -01 2021
24.0 02 -01 2022
24.5 08 -01 2022
Project
Tax
Ca•aci
460
460
460
460
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
28,164
460 28,164
460 28,164
460 28,164
460 28,164
460 28,164
Totals
TAX INCREMENT CASH FLOW
Captured Semi - Annual Admin.
Tax Gross Tax at
Increment 10.00%
0 0
0 0
0 0
0 0
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
20,303
Ca
Gicy al nV &Ktivo - oeASC ALL. PRWEG
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704
27,704 20,303
27,704 20,303
27,704 20,303
27,704 20,303
1,015,144
353,976
0
0
0
0
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
2,030
101,514
35,398
Prepared by Publicorp Inc.
Local
Match
7.50%
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1,523
1 523
1,523
76,136
26,548
Total
Tax Increment
& Local Match
0 0
0 0
0 0
0 0
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
19,795
989,766
345,127
Par,
PERIOD ENDING
Yrs. Mth. Yr.
0.0 08-01 1996
0.0 02 -01 1997
0.0 08 -01 1997
0.0 02 -01 1998
0.5 08 -01 1998
1.0 02 -01 1999
1.5 08-01 1999
2.0 02-01 2000
2.5 08 -01 2000
3.0 02 -01 2001
3.5 08 -01 2001
4.0 02 -01 2002
4.5 08 -01 2002
5.0 02 -01 2003
5.5 08 -01 2003
6.0 02 -01 2004
6.5 08-01 2004
7.0 02 -01 2005
7.5 06-01 2005
8.0 02 -01 2006
8.5 08 -01 2006
9.0 02 -01 2007
9.5 06.01 2007
10.0 02 -01 2008
10.5 08 -01 2008
11.0 02-01 2009
11.5 08 -01 2009.
12.0 02 -01 2010
12.5 08 -01 2010
13.0 02-01 2011
13.5 08 -01 2011
14.0 02-01 2012
14.5 08-01 2012
15.0 02-01 2013
15.5 08 -01 2013
16.0 02 -01 2014
16.5 08 -01 2014
17.0 02 -01 2015
17.5 08-01 2015
18.0 02 -01 2016
18.5 08-01 2016
19.0 02 -01 2017
19.5 08 -01 2017
20.0 02 -01 2018
20.5 08-01 2018
21.0 02 -01 2019..
21.5 08 -01 2019
22.0 02 -01 2020
22.5 08-01 2020 -.
23.0 02 -01 2021
23.5 08-01 2021.
24.0 02 -01 2022
24.5 08-01 2022
25.0 02 -01 2023
68P'
02/12,/96
PERIOD BEGINNING Tax Increment Payment Payment
Yrs. Mth. Yr. & Local Match 7.00°/ 8.50 % Yrs. Mth. Yr.
0.0 02 -01 1996 0 0 0 0.0 08 -01 1996
0.0 08 -01 1996 0 0 0 0.0 02 -01 1997
0.0 02 -01 1997 0 0 0 0.0 08 -01 1997
0.0 08 -01 1997 0 0 0 0.0 02 -01 1998
0.0 ' 02 -01 1998 19,795 5,029 14,766 0.5 08-01 1998
0.5 08-01 1998 19,795 5,029 14,76 1.0 02 -01 1999
1.0 02 -01 1999 19,795 5,029 14,76 1.5 08 -01 1999
1.5 08 -01 1999 19, "95 5,029 14,76 2.0 02 -01 2000
2.0 02 -01 2000 19,795 5,029 14,76 2.5 08 -01 2000
2.5 08-01 2000 19,795 5,029 14,76 3.0 02 -01 2001
3.0 02 -01 2001 19,795 5,029 14,76 3.5 08 -01 2001
3.5 08-01 2001 19,795 5,029 14,76 4.0 02 -01 2002
4.0 02 -01 2002 19,795 5,029 14,76 4.5 08 -01 2002
4.5 08 -01 2002 19,795 5,029 14,76. 5.0 02 -01 2003
5.0 02 -01 2003 19,795 5,029 14,76 5.5 08-01 2003
5.5 08-01 2003 19,795 5,029 14,76 6.0 02 -01 2004
6.0 02-01 2004 19,795 5,02 14,76 6.5 08 -01 2004
6.5 08-01 2004 19,795 5,02 14,76 7.0 02 -01 2005
7.0 02-01 2005 19,795 5,02 14,76 7.5 08-01 2005
7.5 08-01 2005 19,795 5,02 10,11 8.0 02 -01 2006
8.0 02-01 2006 19,795 8.5 08 -01 2006
8.5 08-01 2006 19,795 - 9.0 02-01 2007
9.0 02 -01 2007 19,795 9.5 08 -01 2007
9.5 08 -01 2007 19,795 10.0 02 -01 2008
10.0 02 -01 2008 19,795 10.5 08-01 2008
10.5 08-01 2008 19,795 11.0 02 -01 2009
11.0 02 -01 2009. 19,795 11.5 08 -01 2009
11.5 08 -01 2009 19,795 12.0 02 -01 2010
12.0 02 -01 2010 19,795 12.5 08-01 2010
12.5 08 -01 2010 19,795 13.0 02 -01 2011
3.0 02 -01 2011 19,795 13.5 08 -01 2011
3.5 08-01 2011 19,795 14.0 02-01 2012
14.0 02 -01 2012 - 19,795 14.5 08 -01 2012
14.5 08 -01 2012 19,795 15.0 02-01 2013
15.0 02 -01 2013 19795 15.5 08-01 2013
15.5 08 -01 2013 19,795 16.0 02 -01 2014
16.0 02 -01 2014 19,795 16.5 08-01 2014
16.5 08-01 2014 19,795 17.0 02 -01 2015
17.0 02 -01 2015 19,795 17.5 08 -01 2015
17.5 08 -01 2015 19,795 18.0 02 -01 2016
18.0 02 -01 2016 19,795 18.5 08 -01 2016
18.5 08 -01 2016 19,795 - 19.0 02-01 2017
19.0 02 -01 2017 19,795 19.5 08 -01 2017
19.5 08 -01 2017 19,795 20.0 02 -01 2018
20.0 02 -01 2018 19,795 20.5 08-01 2018
20.5 08-01 2018 19,795 21.0 02 -01 2019
21.0 02 -01 2019 19,795 21.5 08-01 2019
21.5 08 -01 2019 19,795 22.0 02 -01 2020
22.0 02 -01 2020 19,795 225 08-01 2020
22.5 08 -01 2020 19,795 23.0 02 -01 2021
23.0 02 -01 2021 19,795 23.5 08-01 2021
23.5 08 -01 2021 19,795 24.0 02-01 2022
24.0 02 -01 2022 19,795 24.5 08-01 2022
24.5 08 -01 2022 19,795 25.0 02 -01 2023
Totals 989,766 80,45 231,61
[Present Values 53,000 141,00
H0100 -13
City of HOPKINS - BASEBALL PROJECT
PAYMENT CASH FLOW
Total City Developer
PERIOD ENDING
Pag
Prepared by Publicorp Inc. BBPLA
PREAM13L13
Section 1.1. Definitions
TABLE OF CONTENTS
ARTICLE I
Definitions
ARTICLE II
Representations
Section 2.1. Representations by the Authority
Section 22. Representations by the Redeveloper
Section 3.1.
Section 3.2.
Section 3.3.
Section 3.4.
Section 3.5.
Section 4.1
Section 4.2
Section 4.3
ARTICLE 11I
Status of Property: Public Redevelopment Costs
Status of Property
Public Redevelopment Costs
issuance of Note
City Note
Conditions Precedent to Issuance of Note
ARTICLE IV
Construction of Minimum Improvements
Construction of Minimum Improvements
Construction Plans
Commencement and Completion of Construction
Pace
3
6
6
3
3
8
9
9
10
10
11
ARTICLE V
Insurance and Condemnation
Section 5.1. Insurance 13
Section 5.2. Condemnation 15
ARTICLE VI
Taxes: Tax Increment
Section 6.1. Real Property Taxes 16
Section 6.2. Tax Increment 16
ARTICLE VII
Morteage Financing
Section 7.1. Mortgage Financing 17
Section 7.2. Limitation on Encumbrance of Property 17
ARTICLE V11I
Prohibitions Against Assignment and Transfer: Indemnification
Section 8.1. Prohibition :Against Transfer of Property and
Assignment of Agreement
Section 8.2. Approvals
Section 8.3 Release and indemnification Covenants
1 \RI
Events of Default
18
19
19
Section 9.1. Events of Default Dctincd 2 0
Section 9.2. Authority's Remedies on Def 20
Section 9.1 No Remedy 20
Section 9.4. No Additional Waiver Implied by
One Waiver 20
ARTICLE X
Additional Provisions
Section 10.1. Representatives Not Individually Liable 21
Section 10.2. Equal Employment Opportunity 21
Section 10.3. Restrictions on Use 21
Section 10.4. Titles of Articles and Sections 21
Section 10.5. Notices and Demands 21
Section 10.6. Disclaimer of Relationships 21
Section 10.7. Modifications 22
Section 10.8. Counterparts 22
Section 10.9. Judicial Interpretation 22
SCHEDULE A Description of Redevelopment Property
SCHEDULE B Note
SCHEDULE C Job Performance Agreement
SCHEDULE D Description of Uses by Tenant
CONTRACT FOR PRIVATE REDEVELOPMENT
THIS AGREEMENT, made on or as of the day of 1996, by and between the
Housing and Redevelopment Authority in and for the City of Hopkins. a public body corporate
and politic (hereinafter referred to as the "Authority "), established pursuant to Minnesota
Statutes. 469.001-469.047 (formerly Sections 462.411- 462.711) (hereinafter referred to as the
"Act "), and having its principal office at 1010 First Street South, Hopkins, Minnesota 55343, and
Larry C. Barenbaum and Doug M. Karon, two married individuals (collectively hereinafter
referred to as the "Redeveloper "), having their principal office at 7160 Madison Ave. W., Golden
Valley, Minnesota 55427.
WITNESSETH:
WHEREAS, the Authority was created pursuant to the Act and was authorized to transact
business and exercise its powers by a resolution of the City Council of the City of Hopkins (the
"City ") pursuant to Section 469.003 (formerly Section 462.425) of the Act; and
WHEREAS, in furtherance of the objectives of the Act, the Authority has undertaken a
program for the clearance and reconstruction or rehabilitation of blighted. deteriorated_
deteriorating, vacant. unused. under used or inappropriately used, areas of the City, and in this
connection is engaged in carrying out a redevelopment project known as the Hopkins
Redevelopment Project No. 1 (hereinafter referred to as the "Project ") in an area (hereinafter
referred to as the "Project Area ") located in the City: and
WHEREAS, as of the date of this Agreement there has been prepared and approved by the
Authority and the City Council of the Citv a redevelopment plan for the Project (which Plan is
hereinafter referred to as the "Redevelopment Plan "): and
WHEREAS, the Authority has created within the Project Area its Tax Increment
Financing District No. 2 -8 (the "Tax Increment District ") pursuant to Minnesota Statutes_
Sections 469.174 -.179. in order to create a funding source to finance the public redevelopment
costs of the Project: and
WHEREAS, the Redeveloper has negotiated a purchase agreement allowing it to acquire
certain real property located within the Project Area (which real property is referred to herein as
the "Redevelopment Property "): and
WHEREAS, there is present on the Redevelopment Property certain site conditions that
nnust be remedied prior to the development of the property for other uses: and
WHEREAS, the Redeveloper has presented to the Authority a proposal for the
development of the Redevelopment Property through the construction of an at (cast 24.000
square loot officevwarehouse devclopment.xvhich proposal involves the Authority's use of tax
increment pursuant to this Agreement to reimburse the Redeveloper for certain costs of preparing
the Redevelopment Property for development; and
WHEREAS, the Authority believes that the development of the Project Area pursuant to
the Redeveloper's proposal and the fulfillment generally of this Agreement, are in the vital and
best interests of the City and the health, safety, morals, and welfare of its residents, and in accord
with the public purposes and provisions of the applicable State and local laws and requirements
under which the Project has been undertaken and is being assisted, and is, therefor, willing to
provide the financial assistance outlined herein.
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the
parties hereto. each o f them does hereby covenant and agree with the other as follows:
Section 1.1. Definitions. In this Agreement. unless a different meaning clearly appears
from the context:
"Act" means Minnesota Statutes. Sections 469.001 - 469.047 (formerly Municipal Housing
and Redevelopment Act. Minnesota Statutes. Sections 462.411 - 462.711), as amended.
"Agreement" means this Agreement. as the same may be from time to time modified.
amended, or supplemented.
"Authority" means the Housing and Redevelopment Authority In and For the City of
Hopkins. or any successor or assign.
"City" means the City of Hopkins.
"Construction Plans" means the plans. specifications. drawings and related documents on
the construction \stirk to be performed by the Redeveloper on the Redevelopment Property which
shall be as detailed as the documents to be submitted to the City in connection with conditional
use hermit approval for the development of the Minimum improvements.
ARTICLE I
Definitions
"City Note means the tax increment revenue note to be issued by the Authority to the City
to reimburse the City for its forgiveness of certain debt owed by the seller of the Redevelopment
Property to the City. all as is more specifically described in Article III of this Agreement.
"County" mans the County of 11cnncpin.
"Event of Default" means an action by the Redeveloper listed in Article IX of this
Agreement.
"[-[older" means the owner of a NiorLmee.
"Job Performance Agreement" mans the agreement in the lbrm of Schedule C attached
hereto to be entered into between the Authority and the Redeveloper pursuant to Section 4.1(bl
of this Agreement.
"Maturity Date" means the date that the Authority's payment obligations under the Note
terminate.
"Minimum Improvements" means the construction by the Redeveloper of an
office warehouse development of at [east 24.000 square feet in size in accordance with the
Construction Plans.
"Mortgage" means any mortgage obtained by the Redeveloper which is secured, in whole
or in part, by the Redevelopment Property and which is a permitted encumbrance pursuant to the
provisions of Article VIII of this Agreement.
"Net Proceeds" means any proceeds paid by an insurer to the Redeveloper under a policy
or policies of insurance required to be provided and maintained by the Redeveloper pursuant to
Article V of this Agreement and remaining after deducting all expenses (including fees and
disbursements of counsel) incurred in the collection of such proceeds.
"Note" means the Authority's limited revenue tax increment note to be issued by the
Authority to the Redeveloper pursuant to Article III of this Agreement to reimburse the
Redeveloper for its payment of the Public Redevelopment Costs.
"Project" means the Authority's Redevelopment Pro ect No. 1.
"Project Area" means the real property located within the boundaries of the Project.
"Public Redevelopment Costs" means the costs to be paid by the Authority, through the
issuance of the Note. pursuant to Article III of this Agreement.
"Redeveloper" means Larry C. Barenbaum and Doug M. Karon, two individuals, or their
executors. representatives and assigns. or any future owners of the Redevelopment Property.
"Redevelopment Property" means the real property described in Schedule A of this
Agreement.
"Redevelopment Plan" means the Authority's Redevelopment Plan for the Project. as
amended as of the date of this Agreement.
"State" means the State of Minnesota.
"Tax Increment" means that portion of the real property taxes paid with respect to the
Redevelopment Property and Minimum Improvements which is remitted to the Authority as tax
increment pursuant to the Tax Increment Act.
"Tax Increment Act" means Minnesota Statutes. Section 469.174- 469.179. as the same
ma> be amended from time to time.
"Tax Increment District" means the Authority's Tax Increment District No. 2 -8 within the
Project.
"Tax Official" means any City or county assessor. County auditor. City. County or State
board of equalization. the commissioner of revenue of the State. or any State or federal district
court. the tax court of the State. or the State Supreme Court.
4
"Unavoidable Delays" means delays which are the result of acts of God, adverse weather
conditions. strikes. other labor troubles, delays in obtaining construction materials, machinery
and /or equipment. lire or other casualty to the Minimum Improvements. litigation commenced
by third parties which, by injunction or other similar judicial action, results in delays, or acts of
any federal, state or local governmental unit (other than the Authority in enforcing its rights
under this Agreement) which result in delays. Delays in obtaining financing and delays caused
by aeneral market conditions shall not constitute Unavoidable Delays. Upon the occurrence of
an Unavoidable Delay, the party seeking to be excused as a result thereof shall be excused for the
period of the delay if such party gives the other party written notice of the cause of the delay or
interruption within thirty (30) days after its occurrence.
ARTICLE II
Representations
Section 2A. Representations by the Authority. The Authority makes the following
representations as the basis for the undertaking on its part herein contained:
(a) The Authority is a municipal housing and redevelopment authority organized and
existing under the Act. Under the laws of the State, the Authority has the power to enter into this
Agreement and to perform its obligations hereunder.
(b) The Project is a "redevelopment project" within the meaning of the Act and was
created. adopted and approved in accordance with the terms of the Act.
(c) The Redevelopment Property is in a "tax increment financing district ". which was
created. adopted. certified and approved pursuant to the Tax Increment Act.
(d) The Authority will. at no cost to the Authority, cooperate with the Redeveloper
with respect to any litigation commenced with respect to the Plan, Project, or Minimum
Improvements.
(c) The Authority has received no notice or communication from any local, state or
federal official that the activities of the Redeveloper or the Authority in the Project Area may be
or will he in violation of any environmental law or regulation or any other local. state or federal
laws or regulations. The Authority is aware of no facts the existence of which would cause it to
be in violation of any local_ state or federal environmental law. regulation or review procedure.
Section 2.2. Representations by the Redeveloper. The Redeveloper represents that:
(a) The Redeveloper consists of two married individual residents of the State both of
whom have the legal capacity to enter into this Agreement and perform their obligations set forth
herein.
(b) The Redeveloper will construct the Minimum Improvements in accordance with the
terms of this Agreement and all local. state and federal laws and regulations (including. but not
limited to. environmental. zoning. building code and public health laws and regulations). except
for variances necessary to construct the improvements contemplated in the Construction Plans
approved by the Authority.
(el The Redeveloper has received no notice or communication from any local. state or
federal official that the activities of the Redeveloper or the Authority in the Project Area may be
or will be in violation of any environmental law or regulation. The Redeveloper, to the hest of
its knowledge. is aware of no facts the existence of which would cause it to be in violation of any
local. state or federal environmental law. regulation or review procedure.
6
(d) The Redeveloper will, at no cost to Redeveloper, cooperate with the Authority with
respect to any litigation commenced with respect to the Redevelopment Plan, Project, or
Minimum Improvements.
(e) Whenever any Event of Default occurs and the Authority shall employ attorneys or
incur other expenses for the collection of payments due or to become due or for the enforcement
of performance or observance of any obligation or agreement on the part of the Redeveloper
under this Agreement and the Authority prevails in such action or effort, the Redeveloper agrees
that it shall, within thirty (30) days of written demand by the Authority pay to the Authority the
reasonable fees of such attorneys and such other expenses so incurred by the Authority.
ARTICLE III
Status of Property; Public Redevelopment Costs
Section 3.1. Status of Property. The Redevelopment Property is owned by Hopkins Little
League. Inc.. The Redeveloper and Hopkins Little League, Inc., have entered into a purchase
agreement under which the Redeveloper is entitled to purchase the Redevelopment Property.
The purchase price to be paid by the Redeveloper to acquire the Redevelopment Property is
$10.000.00. As additional consideration the Redeveloper is required by the purchase agreement
to obtain the consent of the City to forgive a $53,000.00 debt owed by Hopkins Little League,
Inc., to the City relative to the City's prior relocation of Hopkins Little League. Inc., from the
Redevelopment Property. In order to encourage and assist the Redeveloper's development
hereunder, the Authority agrees that it will, by issuing the Note to the Redeveloper, reimburse the
Redeveloper for certain costs of preparing the Redevelopment Property for development of the
Minimum Improvements. all as is more specifically provided in this Agreement.
3. Public Redevelopment Costs. (a) The Authority agrees that it will through the
issuance and payment of the Note reimburse the Redeveloper for the costs of soil correction and
building demolition incurred by the Redeveloper in preparing the Redevelopment Property for
development of the Minimum Improvements (the "Public Redevelopment Costs "). The
Authority agrees it will reimburse the Redeveloper for its payment of the Public Redevelopment
Costs in the principal atnount of up to 5141.000.00, together with interest thereon at the rate of
8.5% per annum. pursuant to the terms of the Note, which shall be in the form attached hereto as
Schedule B.
(b) The Redeveloper shall be solely responsible for all construction included in the
Public Redevelopment Costs and for the initial payment of the cost thereof. The Authority
agrees that h vi 11 issue the Note at such time as the Redeveloper presents to the Authority
evidence in such form as the Authority may reasonably require. demonstrating that the
construction portions of the Public Redevelopment Costs have been completed, that the
Redeveloper has paid the costs thereof and that the total costs paid by the Redeveloper toward
the Public Redevelopment Costs equals or exceeds $141,000.00. If the total amount of the
Public Redevelopment Costs is less than $141,000 the principal amount of the Note shall be
adjusted accordingly. The Authority and the Redeveloper acknowledge that the soil correction
portion of the Public Redevelopment Costs may exceed amounts budgeted by the Redeveloper
and that if such is the case. the Redeveloper may request that the Authority increase the amount
of the assistance being provided by the Authority. The Authority will consider any such request
but shall have no obligation to agree to increase its assistance, it being agreed that the maximum
amount that the Authority is obligated to provide. through the issuance of the Note. is
$14 1.000.00.
Section 3.3. Issuance of Note. The Authority's reimbursement of the Redeveloper for its
payment of the Public Redevelopment Costs shall be through the issuance of the Note which
shall occur at the time stated in Section 3.2 of this Agreement. The Note shall be in the form of
the Note attached to this Agreement as Schedule B. with all blanks properly filled in and with the
8
payment schedule attached thereto adjusted to take into account the actual date of issuance. The
Note shall be dated and interest thereon shall accrue as of January 1, 1997.
Section 3.4. Citv Note. The City has agreed that, subject to satisfaction of the conditions
contained in Section 3.5, it will forgive the debt owed to it by Hopkins Little League, Inc., as
described in Section 3.1 in order to induce the Redeveloper's development to proceed. Such
agreement on the part of the City was made on the condition that the amount of the forgiven
debt, together with interest thereon, be paid to the City using a portion of the Tax Increment
generated from the Redevelopment Property and Minimum Improvements. Therefore, at the
time of the Redeveloper's acquisition of the Redevelopment Property, the Authority will issue to
the City the City Note under which the Authority will reimburse the. City in accordance with the
payment schedule included in Schedule B to this Agreement. Tax Increment used to pay the City
Note shall be deducted from Available Tax Increment to be used to pay the Note.
Section 3.5. Conditions Precedent to Issuance of Note. The Authority's obligation to
issue the Note or the City Note shall be subject to satisfaction of all of the following conditions
precedent:
(a) No Event of Default shall have occurred and be continuing under this Agreement:
(b) The Redeveloper shall have obtained all governmental approvals, including
watershed hoard approval. that must be obtained in order to permit the construction and
operation of the Minimum Improvements:
(c) The Redeveloper shall have closed on financing sufficient For construction of the
Minimum Improvements:
(di The Redeveloper shall have provided to the Authority evidence that it has paid the
Public Redevelopment Costs as described in Section 3.2 of this Agreement: and
(e) The Redeveloper shall have acquired the Redevelopment Property.
In the event that all of the above conditions precedent have not been satisfied_ or waived in
writing by the Authority. by December 31. 1996. either party hereto may terminate this
Agreement upon the giving of Ill days xvritten notice to the other party of its intention to do.
Upon such termination. neither the Authority nor the Redeveloper shall have any obligation or
liability to the other hereunder: provided. that the Authority and the Redeveloper shall execute a
recordable instrument canceling this Agreement.
9
ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction and Operation of Minimum Improvements. (a) The
Redeveloper agrees that it will construct the Minimum Improvements on the Redevelopment
Property in accordance with the approved Construction Plans, together with any changes
approved by the Authority and any changes not requiring the Authority's approval, and at all
times prior to the Maturity Date will operate and maintain, preserve and keep the Minimum
Improvements or cause the Minimum Improvements to be maintained, preserved and kept with
the appurtenances and every part and parcel thereof, in good repair and condition.
(b) At the time of execution of this Agreement, the Redeveloper and the Authority
entered into the Job Performance Agreement as required pursuant to Minnesota Statutes, section
116J.991. the terms of which are incorporated herein and made a part hereof by reference.
Section 4.2. Construction Plans. (a) The Redeveloper has obtained conditional use permit
approval relative to the development of the Minimum Improvements. Within ninety (90) days
from the date hereof. the Redeveloper shall submit to the Authority Construction Plans for the
Minimum Improvements. The Construction Plans shall provide for the construction of the
Minimum Improvements and shall be in conformity with the Redevelopment Plan, this
Agreement, and all applicable state and local laws and regulations. The Authority shall approve
the Construction Plans in writing if, in the reasonable discretion of the Authority: (a) the
Construction Plans conform to the terns and conditions of this Agreement: (b) the Construction
Plans conform to the terms and conditions of the Redevelopment Plan: (c) the Construction Plans
conform to all applicable federal. State and local law, ordinances, rules and regulations: (d) the
Construction Plans are adequate to provide for the construction of the subject Minimum
Improvements: (e) the Construction Plans do not provide for expenditures in excess of the funds
which will be available to the Redeveloper for the construction of the Minimum improvements:
(0 the Construction Plans are consistent with the approvals granted in connection with the
conditional use permit application: and (g) no Event of Default has occurred. No approval by the
Authority under this Section 4.2 shall relieve the Redeveloper of the obligation to comply with
the terms of this .- \greeutent_ the terms of the Redevelopment Plan, applicable federal. state and
local laws, ordinances. rules and regulations. or to construct the Minimum Improvements. Such
Construction Plans shall. in any event. be deemed approved unless rejected in writing by the
.Authority. in whole or in part. Such rejection shall set forth in detail the reasons therefor, and
shall be made within fourteen (14) days after the date of their receipt by the Authority. If the
Authority rejects the Construction Plans in whole or in part, the Authority shall state in writing
the reasons for the rejection and the Redeveloper shall submit new or corrected Construction
Plans within thirty (30) days after written notification to the Redeveloper of the rejection. The
provisions of this Section relating to approval. rejection and resubmission of corrected
Construction Plans shall continue to apply until the Construction Plans have been approved by
the .Authority or until this Agreement is terminated. Said approval shall constitute a conclusive
determination that the Construction Plans (and the Minimum Intproventents_ if constructed in
accordance with said plans. together with any changes approved by the Authority and an}
I0
changes not requiring the Authority's approval) comply to the Authority's satisfaction with the
provisions of this Agreement relating thereto.
(b) If the Redeveloper desires to make any material change in any Construction Plans
after their approval by the Authority, the Redeveloper shall submit the proposed change to the
Authority for its approval. If the Construction Plans, as modified by the proposed change,
conform to the requirements of this Section 4.2 of this Agreement with respect to such
previously approved Construction Plans, the Authority shall approve the proposed change and
notify the Redeveloper in writing of its approval. Any requested change in the Construction
Plans shall, in any event, be deemed approved by the Authority unless rejected, in whole or in
part. by written notice by the Authority to the Redeveloper, setting forth in detail the reasons
therefor. Such rejection shall be made within ten (10) days after receipt of the notice of such
change.
(c) Nothing in this Agreement shall be deemed to modify the City's normal
construction permitting process as it applies to the Redeveloper's plans for development and the
Redeveloper shall in all respects be required to comply with such process.
Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable
Delays, the Redeveloper shall commence construction of the Minimum Improvements within
sixty (60) days after approval by the watershed board of the wetland delineation report for the
development. or on such other date as the parties shall mutually agree. Subject to Unavoidable
Delays, the Redeveloper shall complete the construction of the Minimum Improvements within
five (5) months after commencement of construction. All work with respect to the Minimum
Improvements to be constructed or provided by the Redeveloper on the Redevelopment Property
shall be in conformity with the Construction Plans. together with any changes approved by the
Authority and any changes not requiring the Authority's approval. as submitted by the
Redeveloper and approved by the Authority.
The Redeveloper agrees for itself. its successors and assigns, and every successor in
interest to the Redevelopment Property. or any part thereof, that the Redeveloper, and its
successors and assigns, shall promptly begin and diligently prosecute to completion the
redevelopment of the Redevelopment Property through the construction of the Minimum
Improvements thereon. and that such construction shall in any event be commenced and
completed within the period specified in this Section 4.3 of this Agreement and subject to
Unavoidable Delays and/or mutual agreement of the parties hereto. Until construction of the
Minimum Improvements has been completed. the Redeveloper shall a make construction progress
reports. at such times as may reasonably be requested by the Authority. but not more than once a
month. as to the actual progress of the Redeveloper with respect to such construction. Upon
substantial completion of the Minimum Improvements and upon request by the Redeveloper. the
Authority shall provide to the Redeveloper a certificate in recordable form stating that the
obligations of the Redeveloper with respect to the construction of the Minimum Improvements
under this Agreement have been satisfied. The Minimum Improvements shall be deemed to be
completed when a certificate of occupancy has been issued by the City for the Minimum
Improvements and the Redeveloper has provided security or other assurances reasonably
satisfactory to the Authority assuring that any remaining items, including without limitation,
landscaping, will be completed.
12
Section 5.1. Insurance.
ARTICLE V
Insurance and Condemnation
(a) The Redeveloper will provide and maintain at all times during the process of
constructing the Minimum Improvements and, from time to time at the request of the Authority.
furnish the Authority with proof of payment of premiums on:
(1) Builder's risk insurance. written on the so- called "Builder's Risk -- Completed
Value Basis." in an amount equal to one hundred percent (100 %) of the insurable value of
the Minimum Improvements at the date of completion, and with coverage available in
nonreporting form on the so called "all risk" form of policy. The interest of the Authority
shall be protected in accordance with a clause in form and content satisfactory to the
Authority:
(ii) Comprehensive general liability insurance (including operations, contingent
liability. operations of subcontractors. completed operations. Broadening Endorsement
including contractual liability insurance) together with an Owner's Contractor's Policy with
limits against bodily injury and property damage of not less than 51,000.000.00 for each
occurrence (to accomplish the above - required limits. an umbrella excess liability policy
nun' be used): and
(iii) Worker's compensation insurance: with statutory coverage and employers liability
protection.
The policies of insurance required pursuant to clauses if and (ii) above shall be in form and
content reasonably satisfactory to the Authority and shall be placed with financially sound and
reputable insurers licensed to transact business in the State. the liability insurer to be rated A or
better in Best's Insurance Guide. The policy of insurance delivered pursuant to clause (i) above
shall contain an agreement of the insurer to give not less than thirty (30) days' advance written
notice to the Authority the event of cancellation of such policy or change affecting the
coverage thereunder.
(b) Upon completion of construction of the Minimum Improvements and prior to the
Maturity Date. the Redeveloper shall maintain. or cause to be maintained. at its cost and expense.
and from time to time at the request of the Authority 5111111 furnish proof of the payment of
premiums on. insurance as follows:
(i) Insurance against loss and, or damage to the Minimum Improvements under a
policy or policies covering such risks as are ordinarily insured against by similar
businesses. including (without limiting the generality of the foregoing) tire. extended
coverage. all risk vandalism and malicious mischief. boiler explosion, water damage.
demolition cost. debris removal. and collapse in an amount not less than the full insurable
replacement value of the Minimum Improvements, but any such policy may have a
deductible amount of not more than $25,000.00. No policy of insurance shall be so written
that the proceeds thereof will produce less than the minimum coverage required by the
preceding sentence. by reason of co- insurance provisions or otherwise, without the prior
consent thereto in writing by the Authority. The term "full insurable replacement value"
shall mean the actual replacement cost of the Minimum Improvements (excluding
foundation and excavation costs and costs of underground flues, pipes, drains and other
uninsurable items) and equipment, and shall be determined from time to time at the request
of the Authority. but not more frequently than once every three years, by an insurance
consultant or insurer. selected and paid for by the Redeveloper and approved by the
Authority.
(ii) Comprehensive general public liability insurance, including personal injury
liability (with employee exclusion deleted), and automobile insurance, including owned,
non -owned and hired automobiles, against liability for injuries to persons and /or property,
in the minimum amount for each occurrence and for each year of $1,000,000.00.
(iii) Such other insurance. including worker's compensation insurance respecting all
employees of the Redeveloper, in such amount as is customarily carried by like
organizations engaged in like activities of comparable size and liability exposure: provided
that the Redeveloper may be self - insured with respect to all or any part of its liability for
worker's compensation.
(c) All insurance required in Article V of this Agreement shall be taken out and
maintained in responsible insurance companies selected by the Redeveloper which are authorized
under the laws of the State to assume the risks covered thereby.
(d) The Redeveloper agrees to notify the Authority immediately in the case of damage
exceeding $25.000 in amount to. or destruction of. the Minimum improvements or any portion
thereof resulting from lire or other casualty. In the event of any such damage. the Redeveloper
will forthwith repair. reconstruct and restore the Minimum Improvements to substantially the
same or an improved condition or value as existed prior to the event causing such damage and. to
the extent necessary to accomplish such repair, reconstruction and restoration. the Redeveloper
will apply the Net Proceeds of any insurance relating to such damage received by the
Redeveloper to the payment or reimbursement of the costs thereof.
The Redeveloper shall complete the repair, reconstruction and restoration of the Minimum
Improvements. w hether or not the Net Proceeds of insurance received by the Redeveloper for
such purposes are sufficient to pay for the same. Any Net Proceeds remaining after completion
of such repairs. construction and restoration shall be remitted to the Redeveloper.
In the event of substanti or total destruction of the Minimum Improvements. the Redeveloper
may elect to not repair or reconstruct the Minimum Improvements. in which case the Authority
may. as its sole remedy. terminate its obligations under the Note.
I-1
(e) The Authority agrees that its rights under this Section relative to the application of
Net Proceeds of insurance provided under Section 5.1(a)(i) and (b)(i) and as provided in Section
5.1(d) shall be subordinate to the rights of a Holder of a Mortgage approved by the Authority:
provided. that the Authority's right to terminate the Note for a violation of the Redeveloper's
obligations under this Section shall not be subordinated to the rights of a Holder.
Section 5.2. Condemnation. In the event that title to and possession of the Minimum
Improvements or any material part thereof shall be taken in condemnation or by the exercise of
the power of eminent domain by any governmental body or other person (except the Authority)
prior to the Maturity Date, the Redeveloper shall, with reasonable promptness after such taking.
notify the Authority as to the nature and extent of such taking. Upon receipt of any
Condemnation Award. the Redeveloper shall elect to either: (a) use the entire Condemnation
Award to reconstruct the Minimum Improvements (or. in the event only a part of Minimum
Improvements have been taken. then to reconstruct such part) within the Project Area: or (b)
retain the Condemnation Award whereupon in the event that a substantial portion of the
Redevelopment Property and Minimum Improvements have been taken, the Authority's
obligations under this Agreement and the Note shall terminate as of the date of the taking.
t5
ARTICLE VI
Taxes; Tax Increment
Section 6.1. Real Property Taxes. The Redeveloper shall pay or cause to be paid when due
and prior to the imposition of penalty all real property taxes and installments of special
assessments payable with respect to the Redevelopment Property after the Redeveloper acquires
the Redevelopment Property.
Section 6.2. Tax Increment. Subject to the limitations contained in the Note, the Authority
hereby pledges to the payment of the Note a portion of the Tax Increment generated from the
Redevelopment Property and completed Minimum Improvernents. The Redeveloper
acknowledges that the Authority has made no warranties or representations to the Redeveloper as
to the amounts of Tax Increment that will be generated or that the "Available Tax Increment ", as
defined in the Note. will be sufficient to pay the Note in whole or in part. Nor is the Authority
warranting that it will have throughout the term of this Agreennent and the Note the continuing
legal ability under State law to apply Tax Increment to the payment of the Note, which continued
legal ability is a condition precedent to the Authority's obligations under the Note. To the extent
that in any year or years the Authority receives Tax Increment in excess of the amounts
necessary to pay amounts due under the Note, the Authority shall be free to use such excess Tax
Increment for any' purpose for which such Tax Increment may used under the Tax Increment Act.
Likewise, aniounts deducted from Tax Increment in determining "Available Tax Increment'
under the Note shall be the Authority's property and the Authority shall be free to use such funds
for any purpose, it determines.
16
ARTICLE VII
Mortgage Financing
Section 7.1. Mortgage Financing. Before the Redeveloper commences construction of the
Minimum Improvements, the Redeveloper shall submit to the Authority evidence of a
commitment for financing sufficient for construction of the Minimum Improvements. If the
Authority finds that the financing is sufficiently committed, adequate in amount to provide for
the construction of the Minimum Improvements, and subject only to such conditions as the
Authority approves then the Authority shall notify the Redeveloper in writing of its approval.
Such approval shall not be unreasonably withheld and either approval or rejection shall be given
within ten (10) days from the date when the Authority is provided the evidence of financing, or
the financing shall be deemed approved. If the Authority rejects the evidence of financing as
inadequate. it shall do so in writing specifying the basis for the rejection. In any event the
Redeveloper shall submit adequate evidence of financing within thirty (30) days after such
rejection.
Section 7.1. Limitation Upon Encumbrance of Property. Prior to the completion of the
Mininnun Improvements. as certified by the Authority neither the Redeveloper nor any
successor in interest to the Redevelopment Property, or any part thereof. shall engage in any
financing or any other transaction creating any mortgage or other encumbrance or lien upon the
Redevelopment Property. whether by express agreement or operation of law, or suffer any
encumbrances or lien to be made on or attach to the Redevelopment Property, except: (a) for the
purposes of obtaining funds only to the extent necessary for constructing the Minimum
Improvements (including. but not limited to. land and building acquisition, including the
purchase price paid. labor and materials. professional fees. real estate taxes, construction interest.
organizational and other indirect costs of development. costs of constructing the Minimum
Improvements. and an alloi(ance for contingencies): and 1 ht only upon the prior written approval
of the Authoritv. which approval shall not he i withheld or delayed. For the
purposes of such mortgage financing as may he made pursuant to the Agreement. the
Redevelopment Property may. at the option of the Redeveloper (or successor in interest). he
divided into several parts or parcels. provided that such subdivision. in the reasonable opinion of
the Authority. is not inconsistent with the purposes ()I' this Agreement and is approved in writing
by the Authority.
1 7
ARTICLE VIII
Prohibitions Against Assignment and Transfer, Indemnification
Section 8.1. Prohibition Against Transfer of Property and Assignment of Agreement. The
Redeveloper represents and agrees that prior to the Maturity Date:
Except by way of security for the purpose of obtaining financing necessary to enable the
Redeveloper or any successor in interest to the Redevelopment Property, or any part thereof, to
perform its obligations with respect to making the Minimum Improvements under the
Agreement, and any other purpose authorized by the Agreement, the Redeveloper (except as so
authorized) has not made or created, and will not make or create, or suffer to be made or created.
any total or partial sale. assignment, conveyance, or lease, or any trust or power, or transfer in
any other mode or form of or with respect to this Agreement or the Redevelopment Property or
any part thereof or any interest herein or therein, or any contract or agreement to do any of the
same. without the prior written approval of the Authority, which approval shall not be
unreasonably withheld or delayed . The Redeveloper shall. however, be entitled to transfer the
Redevelopment Property and assign its rights and obligations under this Agreement to a third
party or entity affiliated with the Redeveloper if such third party or entity assumes the
obligations of the Redeveloper and the Job Performance Agreement under transfer documents
reasonably acceptable to the Authority and if the proposed use of the Redevelopment Property
and employment levels to be maintained are substantially similar to those contemplated with
respect to the Redeveloper's use of the Redevelopment Property. For purposes of this
Agreement. a party or entity shall be deemed affiliated with the Redeveloper if such party or
entity is owned or controlled by the Redeveloper. In no event shall a transfer occur that results in
the Note being owned by an entity different than the owner of the Redevelopment Property and
Minimum Improvements. Without the Authority's prior written approval. Without limiting the
Authority's right to disapprove a transfer of the Note. no transfer shall be permitted unless the
Redeveloper provides to the Authority evidence, satisfactory to the Authority. that all security
registration laws have been complied with in connection with such transfer.
No such transter or approval by the Authority thereof shall be deemed to relieve the
Redeveloper, or any other party bound in any way by this Agreement or otherwise with respect
to the construction of the Minimum Improvements, from any of its obligations with respect
thereto. nor shall Redeveloper or any other party bound by this Agreement be released from any
obligations hereunder Nyithout the written release by the Authority.
Notwithstanding the foregoing. the Authority's participation in the Redeveloper's
development hereunder is predicated upon the new employment that the development will make
possible and its understanding that the Minimum Improvements will be leased under a lease with
a term of not less than ( ) years to , or any successor in
interest. for use as an office \warehouse facility undertaking the types of activities set forth on
Schedule D to this Agreement. Therefore. the Authority hereby consents to such lease, provided.
that the forth of such lease shall be furnished to the Authority for its review and approval prior to
13
the Authority's issuance of the Note. Upon issuance of the Note, the Authority shall be deemed
to have approved such lease.
Section 8.2. Approvals. Any approval required to be given by the Authority under this
Article VIII of this Agreement may be denied only in the event that the Authority reasonably
determines that the ability of the Redeveloper to perform its obligations under this Agreement
will be materially impaired by the action for which approval is sought.
Section 8.3. Release and Indemnification Covenants. (a) The Redeveloper releases from
and covenants and agrees that the Authority and the governing body members, officers, agents.
servants and employees thereof shall not be liable for and agrees to indemnify and hold harmless
the Authority and the governing body members. officers. agents, servants and employees thereof
against any loss or damage to property or any injury to or death of any person occurring at or
about or resulting from any defect in the Minimum Improvements, other than caused by the
willful misconduct or negligence of the Authority or its governing body members, officers,
agents. servants and employees.
(14 Except for any willful misrepresentation, any willful or wanton misconduct. or any
negligent actions of the following named parties. the Redeveloper agrees to protect and defend
the Authority and the governing body members. officers. agents. servants and employees thereof.
now or forever. and further agrees to hold the aforesaid harmless from any claim. demand. suit.
action or other proceeding whatsoever by any person or entity whatsoever arising or purported)
arising from this :Agreement. or the transactions contemplated hereby or the acquisition.
construction. installation. ownership. and operation of the Minimum Improvements.
(c) The Authority and the governing body members. officers. agents. servants and
employees thereof shall not be liable for any damage or injury to the persons or property of the
company or its officers, agents. servants or employees or :Inv other person who may be about the
Redevelopment Property or Minimum Improvements flue 10 any act of negligence of any person
other than the Authority or its goycrnin!, C members. officers. agents. servants and
employees.
id) All covenants. stipulations. promises. agreements and obligations of the Authority
contained herein shall be deemed to be the covenants. stipulations. promises, agreements and
obligations of the Authority and not of any governing body member. officer. agent, servant or
employee of the Authority in the individual capacity thereof:
19
ARTICLE IX
Events of Default
Section 9.1. Events of Default Defined. The term "Event of Default" shall mean, whenever
it is used in this Agreement (unless the context otherwise provides), subject to Unavoidable
Delays, any failure by Redeveloper to substantially observe or perform any covenant, condition.
obligation or agreement on its part to be observed or performed hereunder or under the Job
Performance Agreement.
Section 9.2. Authority's Remedies on Default. Whenever any Event of Default by
Redeveloper referred to in Section 9.1 of this Agreement occurs, the Authority may suspend its
performance under the Agreement and the Note until it receives assurances from the
Redeveloper. deemed reasonably adequate by the Authcrity, that the Redeveloper will cure its
default and continue its performance under the Agreement and the Job Performance Agreement
and may take any one or more of the following actions after providing thirty (30) days written
notice to the Redeveloper of the Event of Default, but only if the Event of Default has not been
cured within said thirty (30) days:
(a) Terminate the Agreement and /or the Note.
(b) Take w hatever action, including legal, equitable or administrative action, which
may appear necessary or desirable to the Authority to collect any payments due under this
Agreement or the Job Performance Agreement, or to enforce performance and observance ol'any
obligation. agreement. or covenant of the Redeveloper under this Agreement or the Job
Performance Agreement.
Section 9.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the
Authority or Redeveloper is intended to be exclusive of any other available remedy or remedies,
but each and every such remedy shall be cumulative and shall be in addition to every other
remedy given under this Agreement or now or hereafter existing at law or in equity or by statute.
No delay or omission to exercise any right or power accruing upon any default shall impair any
such right or -power or shall be construed to be a waiver thereof, but any such right and power
may be exercised from time to time and as often as may be deemed expedient. In order to entitle
the authority or the Redeveloper to exercise any remedy reserved to it. it shall not be necessary
to give notice. other than such notice as may be required in this Article IX.
Section 9.4. No additional Waiver Implied by One Waiver. In the event any agreement
contained in this Agreement should be breached by either party and thereafter waived by the
other party. such vyalter shall be limited to the particular breach so waived and shall not be
deemed to waive any other concurrent. previous or subsequent breach hereunder.
20
ARTICLE X
Additional Provisions
Section 10.1. Representatives Not Individually Liable. No member, official, or employee
of the Authority shall be personally liable to the Redeveloper. or any successor in interest. in the
event of any default or breach or for any amount which may become due to the Redeveloper or
successor on account of any obligations under the terms of the Agreement.
Section 10.2. Equal Employment Opportunity. The Redeveloper. for itself and its
successors and assigns. agrees that during the construction of the Minimum Improvements
provided for in the Agreement it will comply with all applicable federal. state and local equal
employment and non- discrimination laws and regulations.
Section 10.3. Restrictions on Use. The Redeveloper agrees for itself, and its successors
and assigns. and every successor in interest to the Redevelopment Property, or any part thereof.
that the Redeveloper. and such successors and assigns. shall until the Maturity Date devote the
Redevelopment Property to. and only to and in accordance with, the uses specified in the
Redevelopment Plan and this Agreement.
Section 10.4. Titles of Articles and Sections. Any titles of the several parts. Articles. and
Sections of the Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 10.5. Notices and Demands. Except as otherwise expressly provided in this
Agreement. a notice. demand. or other communication under the Agreement by either party to
the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail,
postage prepaid. return receipt requested. or delivered personally: and
(a) in the case of the Redeveloper. is addressed to or delivered personally to the
Redeveloper at 7160 \ladison Ave. \V.; Golden Valley. Ninnesota 55427: and
(5) in the case of the Authority_ is addressed to or delivered personally to the Authority
at 1010 First Street South. Hopkins. Minnesota 55343.
or at such other address with respect to either such party as that party may. Iron time to time.
designate in writing and toward to the other as provided in this Section.
Section 10.6. Diselaimer of Relationships. The Redeveloper acknowledges that nothing
contained in this Agreement nor any act by the Authority or the Redeveloper shall be deemed or
construed by the Redeveloper or by any third person to create any relationship of third-party
beneficiary. principal and agent. limited or general partner_ or joint venture between the
Authority and the Redeveloper or any third party.
Section 10.7. Modifications. This Agreement may be modified solely through written
amendments hereto executed by the Redeveloper and the Authority.
Section 10.8. Counterparts. This Agreement may be executed in any number of
counterparts. each of which shall constitute one and the same instrument.
Section 10.9. Judicial Interpretation. Should any provision of this Agreement require
judicial interpretation. the court interpreting or construing the same shall not apply a presumption
that the terms hereof shall be more strictly construed against one party by reason of the rule of
construction that a document is to be construed more strictly against the party who itself or
through its agent or attorney prepared the same, it being agreed that the agents and attorneys of
both parties have participated in the preparation hereof.
IN WITNESS WHEREOF. the Authority has caused this Agreement to be duly executed in
its name and behalf and the Redeveloper has caused this Agreement to be duly executed in its
name and behalf on or as of the date first above written.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF HOPKINS
By
LARRY C. BARENBA M AND DOUG
M. KAN
STATE OF MINNESOTA)
COUNTY OF )
The foregoing instrument was acknowledged before me this ?-` ilav of '% 1996, by
and the
and of the Housing and
Redevelopment Authority In and For the City of Hopkins. a public body politic and corporate
under the laws of the state of Minnesota.
STATE OF MINNESOTA)
COUNTY OF,
STATE OF MINNESOTA)
COUNTY OF
. 1 - he foregoing instrument
SS.
SS.
The foregoing instrument was acknowledged before me this ,'2 day of 7,2:2 _ 1996, by
Doug M. Karon. a married individual.
SS.
Notary Public
tj
MIMA L.OLSON
NOTARY PUBUC- MINNESOTA
HENNEPIN COUNTY
My Caren. Expires 01 -31-00
Notary Public
✓r.� .irrr��lri��.r�irirr�
MIMA L. OLSON
NOTARY PUBUC - MINNESOTA
HENNEPIN COUNTY
My Comm. Expires 01 -31-00
was acknov■lcdged hcHrc me this / - day of .: el, 1996. by
Larry C. I3arelibaunl. a married individual.
Notary Public
MIMA L. OLSON
NOTARY PUBUC- MINNESOTA
HENNEPIN COUNTY
My Comm. Expires 01 -31.00
SCHEDULE A
Description of Redevelopment Property
Lots 1 to 10. Block 54, West Minneapolis, according to the plat thereof on tile or of record
in the office of the Register of Deeds in and for Hennepin County.
All the vacated alley dedicated to the public in Block 54 of the plat of West Minneapolis,
and that part of vacated 12th Avenue and vacated Railroad Boulevard (dedicated as Railway
Boulevard in said plat) Tying between the West and Northerly line of said Block 54 and the
following described line:
Commencing at the Southwest corner of said Block 54 thence West along the Westerly
extension of the South line of said block to the center line of vacated 12th Avenue, thence
North along said centerline to the Northerly line of Railroad Boulevard, thence
Northeasterly along the Northerly line of Railroad Boulevard to its intersection with the
Northerly extension of the East line of said Block 54, thence South along said extension
to the Northeast corner of said block, and said line there terminating.
A -1
SCHEDULE 13
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTY OF HENNEPIN
HOUSING AND REDEVELOPMENT IN AND FOR
THE CITY OF HOPKINS
LIMITED REVENUE TAX INCREMENT NOTE
13-1
$
The [- lousing and Redevelopment Authority in and For the City of Hopkins. Minnesota
(the "Authority"). hereby acknowledges itself to be indebted and, for value received, promises to
pay to the order of Larry C. Barenbaum and Doug M. , Laron, a , or their permitted assigns
(collectively, the "Owner "), solely from the source. to the extent and in the manner hereinafter
provided. the principal amount of this Note. being One Hundred Forty -One Thousand Dollars
($141,000.00) (the "Principal Amount "), together with interest thereon at the rate of Eight and
One -Half percent (8.5%) per annum (the "Rate ") on the dates (the "Scheduled Payment Dates ")
and in the amounts (the -- Scheduled Payment ") set forth set forth as "Developer. Payment on the
payment schedule attached hereto as Exhibit B.
Each payment on this Note is payable in any coin or currency of the United States of
America Avhich on the date of such payment is legal tender for public and private debts and shall
he made by check or draft made payable to the Owner and mailed to the Owner at its postal
address within the United States which shall be designated from time to time by the Owner.
The Note is a special and limited obligation and not a general obligation of the Authority.
Which has been issued by the Authority pursuant to and in lull conformity with the Constitution
and laws of the State of Minnesota. including Minnesota Statutes. Section 469.178. subdivision
4. to aid in financing a "project ", as therein de fined, of the Authority consisting generally of
defraying certain public redevelopment costs incurred and to be incurred by the Authority within
and for the benefit of its Redevelopment Project No. i (the "Project ").
THIS NOTE IS NOT .4 DEBT OF THE CITY OF HOPKINS OR THE STATE OF
MINNESOTA (THE "STATE "), AND NEITHER THE CITY, THE STATE NOR ANY
POLITICAL SUBDIVISION THEREOF SHALL BE LIABLE ON THE NOTE, NOR
SHALL THIS NOTE BE PAYABLE OUT OF ANY FUNDS OR PROPERTIES OTHER
THAN AVAILABLE TAX INCREMENT, AS DEFINED BELOW.
The Scheduled Payment of this Note due on any Scheduled Payment Date is payable
solely from and only to the extent that the .Authority shall have received in the calendar year
preceding such Scheduled Payment Date " Available Tax Increment ". For purposes of this Note.
Available Tax Increment with respect to any Scheduled Payment Date is defined as the Tax
Increment, as defined in that certain Contract for Private Redevelopment between the Authority
and the Owner dated as of %_ / , 1996 (the "Contract "), generated in the six
(6) month period immediately preceding the Scheduled Payment with respect to that certain real
property described on the attached Exhibit A (hereinafter referred to as the "Redevelopment
Property "), after deducting ten percent (10 %) of the Tax Increment generated in each year and
after further deducting from the remainder the amount shown for such year as "City Payment" on
the payment schedule attached hereto. The Authority shall not be in default under this Note for
failure to make a Scheduled Payment using Available Tax Increment and no interest shall accrue
with respect to the Scheduled Payment not made until a date thirty (30) days after the Authority
receives written demand for such payment from the Owner; provided, that the Authority shall
endeavor to make Scheduled Payments when due or as soon as possible after receipt of the
Owner's written demand.
The Authority shall pay to the Owner on each Scheduled Payment Date the lesser of: (i)
the Available Tax Increment received by the Authority in the six (6) month period preceding
such Scheduled Payment Date: or (ii) the amount of the Scheduled Payment due on the
Scheduled Payment Date. To the extent that on any Scheduled Payment Date under this Note.
the Authority has not received sufficient Available Tax Increment to make the full Scheduled
Payment. the Authority shall make so much of the Scheduled Payment as it is able using
Available Tax Increment. the remainder of the Scheduled Payment shall be forgiven, and for
purposes of calculating the remaining amounts due under this Note, the Scheduled Payment shall
be treated as if it had been paid in full.
The ,Authority's obligations herein are subject to the terms and conditions of the Contract.
Subject to Section 9' of the Contract, the Authority's payment obligations hereunder shall be
suspended and this Note may be terminated by the Authority upon the occurrence of an Event of
Default as provided in Section 9.1 of the Contract, which Contract is incorporated herein and
made a part hereof by reference. Upon such termination. the Authority's obligations to make
lurthcr payments hereunder shall be discharged, Such termination may be accomplished by the
Authority's giving of written notice to the then registered owner of this Note. as shown on the
books of the Authority.
This Note shall not be payable from or constitute a charge upon any funds of the
Authority. and the Authority shall not be subject to any liability hereon or be deemed to have
obligated itself to pay hereon from any funds except Available Tax Increment. and then only to
the extent and in the manner herein specified.
The Owner shall never have or be deemed to have the right to compel any exercise of any
taxing power of the :Authority or of any other public body. and neither the Authority nor any
director. commissioner, council member. board member, officer. employee or agent of the
:Authority. nor any person executing or registering this Note shall be liable personally hereon by
reason of the issuance or registration hereof or otherwise.
13-2
This Note shall not be transferable or assignable, in whole or in part. by the 'Owner
without the prior written consent of the Authority.
This Note is issued pursuant to Resolution of the Authority and is entitled to the
benefits thereof. which resolution is incorporated herein by reference.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things
required by the Constitution and laws of the State of Minnesota to be done, to have happened.
and to be performed precedent to and in the issuance of this Note have been done. have
happened, and have been performed in regular and due form, time, and manner as required by
law: and that this Note. together with all other indebtedness of the Authority outstanding on the
date hereof and on the date of its actual issuance and delivery, does not cause the indebtedness of
the Authority to exceed any constitutional or statutory limitation thereon.
IN WITNESS WHEREOF. the Reusing and Redevelopment Authority In and For the
City of Hopkins. by. its Commissioners, has caused this Note to be executed by the manual
signatures of the and the of the Authority and has caused this Note to
be dated 199
B-3
EXHIBIT A TO NOTE
Description of Redevelopment Property
Lots 1 to 10. Block 54, West Minneapolis, according to the plat thereof on file or of record
in the office of the Register of Deeds in and for Hennepin County.
All the vacated alley dedicated to the public in Block 54 of the plat of West Minneapolis,
and that part of vacated 12th Avenue and vacated Railroad Boulevard (dedicated as Railway
Boulevard in said plat) lying between the West and Northerly line of said Block 54 and the
following described line:
Commencing at the Southwest corner of said Block 54 thence West along the Westerly
extension of the South line of said block to the center line of vacated 12th Avenue, thence
North along said centerline to the Northerly line of Railroad Boulevard, thence
Northeasterly along the Northerly line of Railroad Boulevard to its intersection with the
Northerly extension of the East line of said Block 54, thence South along said extension
to the Northeast corner of said block, and said line there terminating.
B -4
EXHIBIT 13
Payment Schedule
93,000.00
53.000.00
57,019.17
57,01917
59951.88
50,951.88
44,45989
44.45980
37,513.46
37,51148
30,050.78
30,080.78
22127.81
22,127.81
13.618.13
6.5 08 41 2004 13,61 8.13
7.0 0241 2005 4512.77
7.5 08 -01 2005 4512.77
80 02 -01 2006 0
8.5 08 -01 2006 0.00
9.0 02 -01 2007 0.00
9.5 08 -01 2007 0.00
10.0 02 -07 2009 0.00
10.5 08-01 2008 0.00
11.0 02 -01 2009 0.00
11.5 08 -01 2009 0.00
Totals
PER100 BEGINNING
Yrs. Mtg. Yr.
0.0 01 -01 1998
0.0 0841 1996
0.0 01 -01 1997
0.0 08 -01 1997
0.0 02 -01 1996
0.5 08 -01 1998
1.0 02 -01 1999
1.5 08 -01 1999
2.0
2.5
3.0
3.9
4.0
4.5
5.0
5.5
6.0
PERIOD BEGINNING
Yrs. Yr
Beginning q LIMITED REVENUE NOTE &50%0
Interest Prindpal Total Ending
Balance Interest Payment Payment Payment Balance
0.0 01 -01 1996 -- Yrs. Mai Yr.
0.0 0801 1996 - 0.0 08 -01 1996
0.0 01 -01 19 97 741,000.00 0.0 02 -01 1997
0.0 08 -01 1997 141,000.00 12.983.75 0.00 0.00 0.00 153,983.75 0.
0.0 02 -01 1998 0 0241 1998
153,983.75
0.5 08 -01 1998 153983.75 153,983.75
1.0 02 -01 1993 13,088.62 16.443.38 29,532.00 137,540.37 0.5
0 02-01 1999
137,540.37
1.5 08 -01 1999 137440.31 137,540.37 1.5 06.01 1999
2.0 02 -01 2000 11 ,690.93 17,841.07 29,532.00 119,69930 2.0 02-01 2000
2.5 08 -01 2000 it9,699.30
119,690.30
3.0 02.01 2001 - 10,774,44. 19,357.56 29.531.00 100,341.74 3.0 0241. 2001
100,341.74
3.5 08-05 2001 109341.74 100,341 15 08-01 2001
4.0 02 -01 2002 79,338.79 0,52105 21,002.95 29,53200 79,338.79 4.0 02 -01 2002
4.5 08-01 2002 79,338.79 6,719.80 2 & 20 29,532.00 58,550.59 4.5 08 -01 2002
5.0 02431 2003 56,550.59 5.0 02 -01 2003
5.5 06 -01 2003 56,550.59 4,806.80 24,725.20 29,53200 31,825.39 6.0 0841 -01 2004
6.0 02-01 2004 31,825.39
6.5 06-01 2004 31.825.39 2705,16 26.826.84 29,532.00 31.825.39 6.5 _
7.0 0201 2005 4,998.54 4898.54 7.0 0201 2005
-
7.5 08-01 2005 4998.54 4999.54 7.5 08-01 2005
8.0 02 -01 2006
0.00
424.88 4,998.54 5,423.42 0.00 8.0 02 -01 2006
as 09 -01 2006 0 0.00 8.5 08 -01 2006
9,0 02 -01 2007 0.00 0.00 0.00 0.00 0.00 90 02 -01 2007
95 08 -01 2007 0 0.00 9.5 08 -01 2007
10.0 02 -01 2008 0.00 0.00 0.00 0.00 0.00 10.0 0241 2008
10.5 08-01 2008 0 0.00 10.5 08-01 2008
11,0 02 -01 2009 0.00 0.00 0.00 0.00 0.00 71.0 02 -01 2009
71.9 08.01 2009 0 0.00 11.5 08-01 2009
Totals 0 900 0,00 0.00 120 02 -01 2010
12,983.75 59,78157 153,983.75 212,147.42 '
0801 2000
02 -01 2001
0901 2001
02 -01 2002
0801 2002
02 -01 2003
08 -01 2003
02 -01 2004
Beginning
Balance
OTAL PRINCIPAL PAID 141,00000
OTAL INTEREST PAID $6,163.67
OTAL ACCURED INTEREST PAID 12,983.75
OTAL PAID 212.147,42
CITY NOTE
7,00%
Aocured Interest Principal Total Ending
Interest Payment Payment Payment Balance
Yrs. MIA. Yr.
0.0 08-01 1906
0.0 02-01 1997
4,019.17 53,000.00 0.0 0801 1997
0.00 0.00 0.00 57,019.17 0.0 02 41 1998
57,019.17 0.5 08.01 1998
3,991.34 6,067.28 10,058.62 50.95119 1.0 02 -01 1999
50,951.88 1.5 08 -01 1999
9588.53 6,491.99 10,058.82 4 445989 20 02 -01 2000
3.112.19 6,948.43 10,058.62 37,513,48 3.0 08-01 2001
J.0 02-01 2001
37,519.48 3.5 08 -01 2001
2625.94 7,432.68 10,05962 30,080.78 4.0 02.01 2002
30,080.78 4.5 00 -01 2002
2,105.65 7,952.97 10,058.82 22127.81 5.0 0201 2003
22127.81 5.5 08 41 2003
1,54895 8,509.68 10,05982 13,61913 6.0 0241 2004
13,618.13 6.5 08 41 2004
953.27 9106.36 10,05 8.02 4,512.77 7.0 02 -01 2005
4,512.77 7,5 06-01 2005
315.99 4,512.77 4,828.66 0.00 8.0 02 -01 2006
0.00 9.5 0901 2006
0.00 0.00 0.00 0.00 90 02 -01 2007
0.00 9.6 08 -01 2007
0.00 0.00 0.00 0.00 10.0 02 -01 2008
0.00 10.5 08-01 2008
0.00 0.00 0.00 0.00 11.0 02 -01 2009
0.00 11.5 08 -01 2009
0.00 0.00 0.00 0.00 12.0 02 -07 2010
4019.17 18,219.87 57,019_)6 75239.04 _J
TOTAL PRINCIPAL PAID
TOTAL INTEREST PAID
TOTAL ACCURED INTEREST PAID
TOTAL PA)D
Prypa,4a by Cya4ry,p rc.
53,000.00
18219.87
4 019.17
75,239.04
PAYMENT DATE
PAYMENT DATE
This document was drafted be:
BRADLEY & DEIKE. P. A.
5100 Eden .-Avenue. Suite 306
Edina. MN 55436
Telephone:: (612) 927-4333
SCHEDULE C
JOB PERFORMANCE AGREEMENT
By and Between
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF
HOPKINS
and
LARRY C. BARENBAUM AND DOUG M. KARON
Dated: 9 F 1996
C -1
SCHEDULE C
JOB PERFORMANCE AGREEMENT
TIHIS AGREEMENT, made on or as of the day of , 1996, by and
between the Housing and Redevelopment Authority In and For the City of Hopkins, a public
body corporate and politic (hereinafter referred to as the "Authority "), established pursuant to
Laws of Minnesota 1947, Chapter 487, as amended, being Minnesota Statutes, 469.001 - 469.047
(formerly Sections 462.411 - 462.711), and having its principal office at 1010 First Street South.
Hopkins. Minnesota 55343. and Larry C. Barenbaum and Doug M. Karon. two individuals
(hereinafter collectively referred to as the "Redeveloper "), having its principal office at 7160
Madison Ave. W.. Golden Valley, Minnesota 55427.
WITNESSETH:
WHEREAS, the Redeveloper and the Authority have entered into a Contract for Private
Redevelopment dated as of . 1996, (the "Contract ") pursuant to which the
Redeveloper has agreed to construct an office\warehouse facility of at least 24.000 square feet
within the City of Hopkins. Minnesota: and
WHEREAS, in order to induce the Redeveloper to undertake such development. the
Authority has agreed in the Contract to provide certain financial assistance to the Redeveloper
through its payment of certain costs of development relative to the acquisition and preparation of
the property on which the development will occur; and
WHEREAS, Minnesota Statutes. section 116J.991, provides that a government agency
that provides financial assistance for economic development job growth purposes must establish
job and wage goals to be met by the businesses receiving the assistance: and
'WHEREAS, the Authority and the Redeveloper agreed in the Contract that they would
enter into a .lob Performance Agreement to document their understandings as to the job and wage
goals to be met by the Redeveloper with respect to its development: and
WHEREAS, the Authority and the Redeveloper desire that this Agreement serve as the
agreement referenced in the Contract.
NOW, THEREFORE, inconsideration of the premises and the mutual obligations of the
parties hereto. each of them does herebv covenant and agree with the other as follows:
C -2
ARTICLE 1
Definitions
Section 1.1. Definitions. In this Agreement, unless a different meaning clearly appears
from the context:
"Act" means Minnesota Statutes. Sections 1 16J.991.
"Agreement" means this Agreement, as the same may be from time to time Modified.
amended. or supplemented.
"Authority" means the Housing and Redevelopment Authority In and For the City of
Hopkins. or any successor or assign.
"City" means the City of Hopkins.
"Contract means the Contract for Private Redevelopment between the Authority and the
Redeveloper dated as of .f��;ec /, .7 " . 1996.
"Improvements" means the construction by the Redeveloper of an office \warehouse
development of at least 24.000 square feet pursuant to the Contract.
"Permanent Full -Time Employment Position" means the employment of a person who is
eligible to receive any health, pension or other benefits provided according to the personnel or
employment policies of the his /her employer. or through a collective bargaining agreement with
the Redeveloper or its tenants. and whose wages as the term is defined are based upon the
employee working approximately thirty (30) hours a week.
"Redeveloper" meats. collectively. Larry C. Barcnbaum and Doug M. Karon, two
individuals. or their representatives. executors and assigns. or any future owners of the
Redevelopment Property.
"Redevelopment Property" means the teal property described as such in the Contract.
"State" means the State of Minnesota.
ARTICLE (1
Joh and Wage Goals
Section 3.1. Employment Requirements. The Redeveloper agrees that it will employ at
least 20 persons in Permanent Full -Time Employment Positions in the Improvements and that it
C
will cause to be created by itself or its tenants with respect to the Redevelopment Property and
the Improvements at least two (2) new (as opposed to transfers of existing positions) Permanent
Full -Tine Employment Positions. Such new positions shall be created, through the actual
employment of individuals. no later than two (2) years after the substantial completion of the
Improvements pursuant to the terms of the Contract.
Section 2.2. Wage Requirements. The new Permanent Full -Time Employment
Positions required to be created pursuant to Section 2.1 shall be paid an average wage of no less
$5.25 an hour.
Section 2.3. Monitoring. The Redeveloper agrees that it will provide upon request by
the Authority documentation. reasonably required by the Authority, to document Redeveloper's
compliance with the provisions of this Agreement.
Section 2.4. Continuing Obligation. The Redeveloper's obligations ,under this
Agreement shall be continuing and the Redeveloper shall cause the employment and wage levels
to be maintained for a period of at least one (1) year from the date that the Redeveloper is first
obligated to achieve the employment and wage levels.
ARTICLE III
Default
Section 3.1. Defaults Defined. It shall be a default under this Agreement if the
Redeveloper fails to comply with any term or provision of this Agreement. and fails to cure such
failure within sixty (60) days written notice to the Redeveloper of the default. but only if the
default has not been cured within said sixty (60) days. or the Redeveloper does not provide to the
Authority assurances. satisfactory to the Authority in its reasonable discretion, that the default
will be cured and will be cured as soon as reasonably possible.
Section 3.2. Remedies on Default. Upon the occurrence of a default under this
Agreement the Authority may declare immediately due and payable the entire amount of
principal and interest paid by the Authority under the Note. as defined in the Contract, together
with interest on such amount at the rate of eight and one -half percent (8.5 %) from the date that
the Authority stakes such declaration. Within ten (10) days after the date that the Authority
makes such declaration the Redeveloper shall be liable for and shall repay the .mount of the
assistance plus interest.
Section 3.3. Costs of Enforcement. Whenever any default occurs under this Agreement
and the Authority shall employ attorneys or incur other expenses for the collection of payments
due or for the enforcement of performance or observance of any obligation or agreement on the
part of the Redeveloper under this Agreement. the Redeveloper shall be liable to the Authority
for the reasonable tees of such attorneys and such other expenses so incurred by the Authority:
C -4
provided, that the Redeveloper shall only be obligated to make such reimbursement if the
Authority prevails in such collection or enforcement action.
Section 3.4. Force Majeure. In the event that the Redeveloper's compliance with the terms
of this Agreement is delayed or interrupted due to strikes, acts of God, acts of any federal, state
of local governmental unit, the Redeveloper's non - compliance shall be excused for the period of
delay or interruption if the Redeveloper gives the Authority written notice of the cause of the
delay or interruption within thirty (30) days after its occurrence. General economic or market
conditions shall not constitute cause for excusing Redeveloper's performance.
ARTICLE IV
Miscellaneous
Section 4.1. Provisions of Agreement Not Affected. With the exception of the
provisions of the Contract relative to the Redeveloper's employment and wage requirements, this
Agreement is not intended to modify or limit in any way the terms of the Contract.
Section 4.2. Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of the Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 4.3. Modifications. This Agreement may be modified solely through written
amendments hereto executed by the Redeveloper and the Authority.
Section 4.4. Counterparts. This Agreement may be executed in any number of
counterparts. each ofahich shall constitute one and the sane instrument.
Section 4.5. Judicial Interpretation. Should any provision of this Agreement require
judicial interpretation. the court interpreting or construing the same shall not apply a presumption
that the terns hereof shall be more strictly construed against one party by reason of the rule of
construction that a document is to be construed more strictly against the party who itself or
through its agent or attorney prepared the sane. it being agreed that the agents and attorneys of
both parties have participated in the preparation hereof.
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly executed
in its name and behalf and the Redeveloper has caused this Agreement to be duly executed in its
name and behalf on or as of the date first above written.
STATE OF MINNESOTA)
COUNTY OF
) SS.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF HOPKINS
By
Its
By
Its
LARRY C. BARENBAUM AND DOUG
M. KARON
The foregoing instrument was acknowledged before me this ! _ day of ", •: �.M 996- by
and the
and of the Housing and
Redevelopment Authority In and For the City of Hopkins, a public body politic and corporate
under the laws of the state of Minnesota.
ter'
Notary Public
^"7
MIMA L. OLSON
STATE OF MINNESOTA) .-
NOTARYPUBLC-MINNESOTA
) SS. f
My HENNEPINCOUN[Y _ !#
COUNTY OF - ---7-zenereenamesad
The loregoinu instrument was acknowledged before the this it day of /J h tst. 1996. by
Doug M. Karon. a married individual. -
Notary Public
C -6
— :�
MIMA L. OLSON
NOTARY PUBLIC - MINNESOTA
HENNEPIN COUNTY
My Comm. Expires 01 -31-00
STATE OF MINNESOTA)
COUNTY OF
S S.
The foregoing instrument was acknowledged before me this / of
Larry C. Barenbaum, a married individual.
C -7
Notary Public
� -, 1996, by
MfMA L. OLSON
NOTARY PUBUC- MINNESOTA
NENNEPINCOUNIY
*Omni. Emires 0141-00
SCHEDULE D
Description of Uses by Tenant
D -1