CR 2012-062 Transfer of Ownership - Park Nicollet SiteMay 30, 2012 N O P K I N S Council Report 2012-062
TRANSFER OF OWNERSHIP - PARK NICOLLET SITE
Proposed Action
Staff recommends adoption of the following motion: Move to approve Resolution 2012-039
transferring ownership of the former Park Nicollet property to the Hopkins Housing &
Redevelopment Authority.
With this motion it is understood that the property will be transferred to the Hopkins HRA
for sale to Klodt Development, along with an assignment of the Redevelopment
Agreement, Promissory Note and Mortgage between the City of Hopkins and Hennepin
County.
Overview
As planning for the SW LRT progressed, the vision of 8th Avenue as the connector from
the SW LRT station on Excelsior Boulevard to Mainstreet has solidified. In order for 8th
Avenue to be a gateway, the uses along and design of 8th Avenue must be transformed in
to an inviting pedestrian, bike, and automobile corridor. A key site along this corridor, the
Park Nicollet clinic, became available when the clinic was closed in August of 2009.
The HRA entered into an option to purchase the property. A request for proposals went
out in June of 2010 and in March 2011 Klodt Development was selected as the developer
for the site. The City of Hopkins secured a portion of the funds necessary to purchase the
property through grant funds, and the City exercised the option and purchased the
property.
Typically, redevelopment projects are completed under the powers of the Hopkins
Housing & Redevelopment Authority, rather than the City of Hopkins. In order to preserve
the legal rights associated with an HRA, and be consistent with our practices, a transfer to
the HRA is being recommended.
Primary Issues to Consider
A public hearing on the sale of the property was held by the Hopkins Housing &
Redevelopment Authority. The agreement authorizing the sale from the HRA to Klodt
Development was considered at the June 5, 2012, HRA meeting, contingent upon the City
of Hopkins transferring title.
Supporting Documents
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KersterYElverum i
Direc;t6r of Planning & Development
.Financial Impact: $ 0 Budgeted: Y/N Source:
Related Documents (CIP, ERP, etc.):
Notes:
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION NO. 2012-039
RESOLUTION AUTHORIZING THE TRANSFER OF OWNERSHIP OF 8151ST STREET
SOUTH (FORMER PARK NICOLLET CLINIC) FROM THE CITY OF HOPKINS TO THE
HOPKINS HOUSING & REDEVELOPMENT AUTHORITY
WHEREAS, the City has developed a plan to create a gateway to Downtown Hopkins
along 8th Avenue in order to provide a connection to the planned Southwest Light Rail
Transit (SW LRT) station at 8th Avenue and Excelsior Boulevard; and
WHEREAS, the City of Hopkins secured a $875,000 Transit Oriented Development Grant
from the Hennepin County Housing and Redevelopment Authority in order to purchase a
key parcel, the former Park Nicollet Clinic property ("Redevelopment Property"), and
WHEREAS, the City of Hopkins purchased the Redevelopment Property and issued a
Request for Proposals for its redevelopment as a housing and retail development, and
WHEREAS, the City selected Klodt Development to be the developer for the
Redevelopment Property and has negotiated a Purchase and Development Agreement;
and
WHEREAS, the practice of the City has been to conduct redevelopment activities under
the legal powers given to the Hopkins Housing & Redevelopment Authority; and
WHEREAS, the transfer of the Redevelopment Property and assignment of the
Redevelopment Agreement, Promissory Note and Mortgage between the City of Hopkins
and the Hennepin County HRA to the Hopkins HRA must be approved before the Hopkins
HRA can facilitate the sale to Klodt.
WHEREAS, the Hopkins City Council finds that the transfer of the Redevelopment
Property to the Hopkins HRA, without financial consideration being paid to the City, is for
the purpose of aiding and cooperating in the planning, undertaking, construction and
redevelopment of the Redevelopment Property.
THEREFORE, BE IT RESOLVED, that the City of Hopkins approves and authorizes the
transfer of ownership of the Redevelopment Property located at 815 First Street South and
associated parcels to the Hopkins Housing & Redevelopment Authority, without
consideration, and approves and authorizes the Assignment and Assumption of the
Redevelopment Agreement, Promissory Note and Mortgage between the City and the
Hennepin County HRA to the Hopkins HRA.
IT IS FURTHER RESOLVED, that the appropriate City officials are authorized to execute
and deliver the deed and assignment documents required to complete the transfer of the
Redevelopment Property and Assumption of the Redevelopment Agreement, Promissory
Note and Mortgage by the Hopkins HRA.
Adopted this 5th day of June, 2012.
Eugene J. Maxwell, Mayor
Attest:
Kris Luedke, City Clerk