Adopt Resolution #21-225 Approving Development Agreement and Releasing Declaration of Covenants for AEC Energy Park and Development Agreement; Case of Anderson Dahlen

The purpose of this case of to approve the Development Agreement and to Release the Declaration of Covenants for AEC Energy Park.

Development Agreement
The attached draft development agreement is the City's standard template, which has been approved by the City Attorney. The City Council, if approved, is authorizing Staff to use the City's standard template and agreement for this project. Staff is supportive of using the standard template for this project. 

Declaration of Covenants, Conditions and Restriction for AEC Energy Park
Connexus Energy is in the process of selling land to Knoll II Properties for a 64,000 SF expansion of Anderson Dahlen.  On October 16, 1995 Anoka Electric Cooperative (now Connexus Energy) established a Declaration of Covenants, Conditions and Restrictions of AEC Energy Park and it was filed in Anoka County as document number 1206475 on February 29, 1996.    Over time, city code has been modified to ensure that quality of buildings in City industrial parks remains high and building lot coverage has been increased from 35% to 45% to alow for more tax base and jobs to be created in our industrial areas.  During title work it was discovered that there were restrictive covenants in place that are no longer consistent with City Code.(i.e. 35% lot coverage restriction) Connexus Energy, on behalf of Knoll Properties II (Anderson-Dahlen), has asked the City to approve the Release and Termination of the The Declaration of Covenants, Condition and Restrictions for AEC Energy Park (attached document 1206475). 80% of property owners (Connexus, Hoya-Vision Ease, Knoll Properties-Anderson Dahlen and the City Of Ramsey) need to approve the release and termination of the document. Staff has been in contact with Knoll Properties and Hoya-Vision Ease and all are working toward authorization to support the release termination of the Declaration of Covenants, Conditions and Restrictions of AEC Energy Park. City Staff has consulted with the City Attorney and he supports the release.

Release of Pre-Existing Development Agreement
The City also has received a request related to this project to declare that the existing Development Agreement for the project is completed and all items have been satisfied. Since Development Agreements are recorded against each Property, past Development Agreements come up on title searches and can make closings more complex. Since all of the items in the existing Development Agreement (attached) are satisfied, the cleanest method is to remove it from the Subject Property via a formal release. This is a standard process and Staff has consulted all impacted departments and the City Attorney. All items in this case are contigent upon Attorney review and approval.

Proposed Action to Release and Termination Declaration of Covenants, Conditions and Restriction for AEC Energy Park
City staff and the City attorney have reviewed the request to approve the Release and Termination Declaration of Covenants, Conditions and Restriction for AEC Energy Park (See attached). The City Attorney and Staff have determined that it would be beneficial for City to terminate and release this document as it would effectively allow for more quality development to occur on the remaining vacant land in the AEC Energy Park.  This would allow for the creation of more commercial tax base, existing business expansions and the creation of more jobs locally.

Alternatives Include:
1) Adoption of Resolution 21-225 as presented which would authorize the City to execute the Release and Termination Declaration of Covenants, Conditions and Restriction for AEC Energy Park; subject to City Attorney review. (Staff recommendation)
2) Adoption of Resolution 21-225 with changes which would authorize the City to execute the Release and Termination Declaration of Covenants, Conditions and Restriction for AEC Energy Park; subject to City Attorney review.
3) Something else.

This action is being covered under normal staff duties.

Proposed Action to Release and Termination Declaration of Covenants, Conditions and Restriction for AEC Energy Park
Staff recommends adoption of Resolution 21-225 as presented which would authorize the City to execute the Release and Termination Declaration of Covenants, Conditions and Restriction for AEC Energy Park and existing Development Agreement; subject to City Attorney review.

Motion to approve Resolution #21-225 Approving Development Agreement and Releasing Declaration of Covenants for AEC Energy Park and Development Agreement; Case of Anderson Dahlen; subject to City Attorney review.