View Agenda Item

4.9.

CC Regular Session

Meeting Date:: 12/13/2016
Submitted For:: Patrick Brama
By:: Patrick Brama, Administrative Services

Information

Title

Adopt Resolution #16-12-246 approving Amended and Restated Development Contract (Partial Release) for Alpha Development/ former Legacy Christian Academy Project

Purpose/Background:

***This case/ agreement was reviewed and approved by the Council in September***

Since September, Hageman Holdings has made a number of language change requests to the restated development agreement. Although the intent and meaning of the agreement has not changed in staff's opinion, from the September version, the number of language changes is enough to warrant another approval by Council. As a result, this case is being re-routed through Council. The attached agreement has been reviewed by the City's Community Development Director and Attorney.

PURPOSE
Approve Amended and Restated Development Agreement for Alpha Development and Legacy Christian Academy Site Plan.

The reason this request has come forward is--Hangman Holdings (affiliated with J&B Group--No Name Steaks) is obtaining financing for a major business expansion they are completing in St. Michael. As part of that refinancing process, their bank is attempting to remove as many unknowns/ completed items related to one of their major assets--the Legacy Christian Academy land/ Alpha Plat (and the subsequent agreements). This type of request is common (attempt to clean up property title during the financing process). Staff considers this an administrative/ housekeeping item. This amendment has been reviewed by the City Attorney and Community Development Director.

BACKGROUND
Hageman Holdings owns 171 acres of raw land located just west of Armstrong Boulevard on the north and south side of Bunker Lake Boulevard in the City of Ramsey. In 2011, the City of Ramsey entered into a development agreement with Hageman Holdings for roughly 64.26 acres of land that was anticipated for use by a new Legacy Christian Academy campus (“Lot 1, Block 1”). Additionally, in December of 2010, the City of Ramsey approved a plat (“Alpha Development Plat”) to guide the development of the Hageman Holdings property. With that plat, came several individual agreements/ recorded documents.

Agreements

Alpha Development Plat: December 2010
Development Agreement: May 2011
Right of Entry Agreement: May 2011
Warranty Deed: May 2011
Declaration of Easement: May 2011
Stormwater Treatment and Ponding Maintenance Agreement: May 2011
Assessment Agreement

Observations/Alternatives:

Below are the major changes to the agreement:

All items that have been completed have been removed from the agreement (phase 1 and phase 2 agreements, and all associated language).
Agreement has been simplified, because the property has been platted, descriptions of land are much shorter.
Items in the attached development agreement that still connect/ depend-on the outstanding assessment agreement (also attached) have been left in the development agreement. This mainly includes language RE payment of development fees.
In summary, the amended development agreement is much shorter--and only includes language related to outstanding items (i.e. the assessment agreement -- Hageman still has several years of assessments to pay).

Funding Source:

Recommendation:

Action:

Motion to:
Adopt Resolution #16-09-246 approving Amended and Restated Development Contract (Partial Release) for Alpha Development; subject to final review and approval from the City Attorney.

Attachments

Form Review

Inbox	Reviewed By	Date
Kurt Ulrich	Kathy Schmitz	12/08/2016 01:49 PM

Form Started By:: Patrick Brama
Started On:: 12/05/2016 01:31 PM
Final Approval Date:: 12/08/2016