Economic Development Authority - Erik Thorvig, Community Development Director
Title
Title
Approval of Preliminary Development Agreement for 105th Avenue Redevelopment Project
end
Executive Summary
Approval the predevelopment agreement for the 105th Avenue master plan.
Background
In November, a master developer was selected for the 105th Avenue Redevelopment Area through an RFP process. The first step in the process is to execute a development agreement between the Blaine Economic Development Authority (EDA) and the developer.
A draft agreement was prepared by the EDA’s legal counsel and provided to the developer. The developer provided comments and changes to the agreement. Over the last several weeks there have been various meetings and discussion between staff and the developer to understand the context of the changes and the developer’s initial phasing plan for the project.
The EDA was provided a brief update on the status of the agreement negotiations at the workshop on December 12. Unfortunately, a draft agreement was not ready to be shared at this meeting. A meeting will be held on Thursday, December 15 between city staff, city legal counsel and the developer to go over the document. Revisions to the document will occur after this meeting and be provided to prior and presented to the EDA at the meeting on December 19.
Strategic Plan Relationship
The 105th Redevelopment Area was identified in the Strategic Plan. The area also has been identified in the 2040 Comprehensive Plan as a redevelopment area.
Staff Recommendation
Approve the draft agreement and direct staff and legal counsel to finalize the agreement for execution.
Attachments
Preliminary Development Agreement
Body
WHEREAS, the Blaine Economic Development Authority (the “EDA”) is the owner of certain real property (the “EDA Property”) located in the City of Blaine, Minnesota (the “City”) and described in Exhibit A of the Preliminary Development Agreement (as hereinafter defined);
WHEREAS, Elevage Development Group, LLC, a Minnesota limited liability company (the “Developer”) has proposed that the EDA enter into a Preliminary Development Agreement between the EDA and the Developer (the “Preliminary Development Agreement”) setting forth the tasks the Developer will undertake in determining whether to proceed with the construction of a new mixed-use development to be developed by the Developer (the “Development”) on the EDA Property and certain other real property located adjacent to or near the EDA Property that may be acquired by the EDA or the Developer (the “Additional Property” and, together with the EDA Property, the “Redevelopment Property”) and the tasks the EDA will undertake in considering a definitive purchase agreement pursuant to which it would sell the EDA Property to the Developer and a definitive master development agreement (collectively, the “Definitive Agreements”) in order to facilitate the Development; and
WHEREAS, the Preliminary Development Agreement sets forth certain termination fees which the EDA may be subject to pay if Definitive Agreements are not reached;
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Blaine Economic Development Authority (the “Board”), as follows:
1. The EDA hereby approves the Preliminary Development Agreement substantially in accordance with the terms set forth in the form presented to the Board, together with any related documents necessary in connection therewith (collectively, the “Preliminary Development Documents”), and hereby authorizes the President and Executive Director to negotiate the final terms thereof and, in their discretion and at such time as they may deem appropriate, to execute the Preliminary Development Documents on behalf of the EDA, and to carry out, on behalf of the EDA, the EDA’s obligations thereunder.
2. The approval hereby given to the Preliminary Development Documents includes approval of such additional details therein as may be necessary and appropriate and such modifications thereof, deletions therefrom and additions thereto as may be necessary and appropriate and approved by legal counsel to the EDA and by the officers authorized herein to execute said documents prior to their execution; and said officers are hereby authorized to approve said changes on behalf of the EDA. The execution of any instrument by the appropriate officers of the EDA herein authorized shall be conclusive evidence of the approval of such document in accordance with the terms hereof. In the event of absence or disability of the officers, any of the documents authorized by this Resolution to be executed may be executed without further act or authorization of the Board by any duly designated acting official, or by such other officer or officers of the Board as, in the opinion of the City Attorney, may act in their behalf.
3. Upon execution and delivery of the Preliminary Development Documents, the officers and employees of the EDA are hereby authorized and directed to take or cause to be taken such actions as may be necessary on behalf of the EDA to implement the Preliminary Development Documents.
PASSED by the Blaine Economic Development Authority this 19th day of December, 2022.