HRA 09-01 Transfer of Property-525 Main St G �TY p�
December 30, 2008 HRA Report 2009-01
: HOPKINS .
• TRANSFER OF PROPERTY —
525 MAINSTREET
' Proposed Action _
Staff recommends adoption of the following motion: Following the public :hearing, move.to '
approve Resolution 458, approving the transfer of 525 Mainstreet to Doran-Pratt
Development, LLC, or their assigns.
With this motion it is understood that the executive director has the authority to execute �
documents necessary for this transaction.
Overview
The HRA and Doran-Pratt Development, tLC, have entered into an agreement for the
redevelopment of Block 64. Under the agreement, the HRA has agreed to attempt to
. acquire the remaining parcels needed to facilitate the redevelopment of this site. Through
mediation, the HRA, developer, and owners of 525 Mainstreet have negotiated the terms
for the acquisition of this property.
' The proposed agreement calls for the closing on:the property to occur between January 2,
2009, and January 30, 2009, for a price of $620,000. The current owner would be allowed
to remain at the property until June 30, 20Q9. Upon their vacating the property they would `
. be entitled to $71,250 in relocation allowance. Doran-Pratt Development would provide a
. - loan to the HRA to acquire the property and title would be transferred to the developer
after the property has been vacated.
During the approximately six months the current owners will be allowed to stay at the
, :
property, they will be responsible for all utilities, taxes insurance, and necessary repairs.
Primarv Issues to Consider
The developer will be providing the HRA with the funds to close on the property in January` ,
in the form of an unsecured note. The title will be transferred to the developer when the
current owner has vacated the property. This arrangement is being recommended by:the
HRA`s counsel in order to protect the HRA's interests and abilityto enforce the conditions '
of the stipulation. There is minimal exposure to the HRA undec.this scenario.
Su ortinc ocuments
• ol ' 458
ersten erum
Directo : of Planning & Development �
Financial lmpact: $ 0 Budgeted: Y/N Source: ;
Related`Documents (CIP, ERP, etc:): �
• Notes:
� HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF HOPKINS
RESOLUTION NO. 458
RESOLUTION APPROVING THE SALE OF 525 MAINSTREET TO DORAN-PRATT
DEVELOPMENT, LLC, OR THEIR ASSIGNS
WHEREAS the Hopkins Housing and Redevelopment Authority (HRA) agreed upon the terms for
the purchase of 525 Mainstreet, Hopkins, and intends to close on the property in January 2009 in
order to facilitate the redevelopment of Block 64; and
WHEREAS Doran-Pratt Development, LLC, is providing the funds for the HRA to purchase the
property; and
WHEREAS upon the vacation of the property by the current owners, the HRA intends to transfer
the title to Doran-Pratt Development, LLC, conditioned upon the terms detailed in the Contract for
Private Redevelopment; and
WHEREAS the City of Hopkins City Council supports this proposal to add to the housing stock and
revitalization of Mainstreet Hopkins; and
• WHEREAS, the transfer of title of the property will not result in proceeds from such sale.
NOW, THEREFORE, it is hereby resolved by the Housing and Redevelopment Authority of the
City of Hopkins the sale of 525 Mainstreet to Doran-Pratt Development, LLC, is acceptable subject
to the conditions of the Contract for Private Redevelopment.
Adopted this 6th day of January 2009.
By
Gene Maxwell, HRA Chair
ATTEST:
Rick Getschow, HRA ED
•