HRA Repot 2013-011 Amendment to Mokabaka LLC Purchase Agreement121
October 11, 2013
HRA Report 2013-11
AMENDMENT TO MOKABAKA LLC PURCHASE AGREEMENT
Proposed Action
Staff recommends adoption of the following motion: Move to approve the First
Amendment to the Purchase Agreement between Mokabaka LLC and the Housing and
Redevelopment Authority in and for the City of Hopkins.
With this motion, it is understood that minor modifications can be made to the agreement
that do not affect the overall intent.
Overview
As part of the Shady Oak Road reconstruction project, the City of Hopkins received
Community Works funds to help offset the parking lost to the road project and create
redevelopment opportunities. One of the eligible activities under the grant agreement with
Hennepin County is the purchase of property. The HRA purchased the former Leaman's
Liquor/Nelson's Meats property and is committed to sell the property to Mokabaka LLC for
redevelopment purposes.
Closing on the transfer of the property to Mokabaka has been delayed, but both parties
agree that the demolition needs to be accomplished as soon as possible. The Purchase
Agreement is proposed to be amended to allow Mokabaka the right to enter the property
and conduct the demolition. Mokabaka will be reimbursed for costs incurred for demolition
through the Community Works grant.
The agreement will also include a provision to include soil correction activities as eligible
costs. The need for soil correction was recently identified and not a known condition at the
time the Purchase Agreement was executed.
Primary Issues to Consider
The amendments are necessary to carry out the intent of the Shady Oak Road Community
Works project and to advance the redevelopment ahead of winter construction costs and
limitations. The demolition is necessary in order to prepare the site for redevelopment,
which is a key requirement of Community Works funds.
Supportinq Documents
The proposed amended agreement was not available at the time this report was prepared.
The proposed amendments will/be shared and discussed at the HRA meeting.
Kersten ElveKurn Gz
Director of I Tanning & Development
Financial Impact: $ 0 Budgeted: Y/N Source:
Related Documents (CIP, ERP, etc.):
Notes: