HomeMy WebLinkAbout20081215 - VI-18VI-18
Memo
To: Mayor Hicks and City Council
From: John Hinzman, Planning Director
Date: December 15, 2008
Subject: Authorize Signature -Reservation of Adjacent Property -Lanoga
Corporation (ProBuild -UBC)
REQUEST
The City Council is asked to authorize signature of the attached Reservation of Adjacent
Property Agreement between the City and Lanoga Corporation (ProBuild -UBC). The
proposed amended section was part of the original.purchase and development agreement
pertaining to the relocation of UBC from downtown to the Industrial Parkin 2005. Section
3.9 of the original agreement gives Lanoga the opportunity to purchase adjacent land for
future improvements. Amendments include the following:
• Extend the reservation to purchase the northerly adjacent city-owned land for an
additional two years.
• Modify the proposed capital investment from $2,000,000 to $750,000 for
construction of a new manufacturing building and\or material distribution facility
creating ten new jobs.
ATTACHMENTS
• Reservation of Adjacent Property Agreement
RESERVATION OF ADJACENT PROPERTY
THIS AGREEMENT, made on or as of the day of ,
2008, by and between the City of Hastings, Minnesota, a home rule charter city under the
laws of the State of Minnesota (hereinafter referred to as the "City"), and having its
principal office at 101 4th Street East, Hastings, Minnesota 55033-1955, and Lanoga
Corporation, a Minnesota Corporation (hereinafter referred to as the "Developer"),
having its principal office at 125 Fifth Street West, Winona, Minnesota 55987-3557.
WITNESSETH:
WHEREAS, the City and Developer are parties to a Purchase and Development
Agreement (hereinafter referred to as the "Original Agreement"), dated July 5, 2005,
recorded as Document No. 2354602, Dakota County, Minnesota; and
WHEREAS, Section 3.9 of the Original Agreement memorializes terms for the
Reservation of Adjacent Property as follows:
The City owns a 3.11 acre parcel of property located to the north of the Property
and legally described as the north 240 feet of Lot 2, Block 1, Hastings Industrial
Park Number 3, according to the recorded plat thereof, Dakota County,
Minnesota. The Developer has expressed an interest in acquiring that property for
the purpose of constructing a new manufacturing facility at a cost of
approximately $2,000,000 for the operation of a business that would create
approximately ten (10) new employment positions. The City agrees that it will
not sell or transfer such property to a party other than the Developer for a period
of three (3) years from the date of conveyance of the Property to the Developer
pursuant to this Agreement. If within three (3) years from the date of conveyance
of the Property by the City to the Developer the Developer and the City have not
entered into a purchase and development agreement under which the City agrees
to convey such property to the Developer, the City's covenants in this section
shall terminate and be of no further force or effect. For title purposes, termination
of the City's covenants in this section inay be evidenced by a writing signed by an
official of the City to the effect that the City and Developer have not entered into
such an agreement and, if asked by the City, the Developer will execute a
document in a form required by the City stating that the City's obligations under
this section have terminated. The City's consideration of a proposal by the
Developer to acquire such property shall be made in light of the City's industrial
park land credit program and business subsidy policy in effect at the time of the
Developer's proposal, but the decision to convey the property to the Developer
shall be in the City's sole discretion. The Developer may request and the City will
consider, but is not obligated to grant, two (2) one (1) year extensions of the three
(3) year period for submitting a proposal to the City; and
WHEREAS, the subject pro~erty of the Original Agreement was conveyed by the
City to the Developer on August 24t , 2005; and
WHEREAS, the Developer requests a two (2) year extension to purchase
Adjacent Property.
NOW THEREFORE, the City and Developer agree to modify the terms of
Section 3.9 of the Original Agreement for as follows:
1) The City agrees that it will not sell or transfer such property to a party
other than the Developer for a period of five (5) years from the date of
conveyance of the Property to the Developer pursuant to this
Agreement. If within five (5) years from the date of conveyance of the
Property by the City to the Developer the Developer and the City have
not entered into a purchase and development agreement under which
the City agrees to convey such property to the Developer, the City's
covenants in this section shall terminate and be of no further force or
effect.
2) The Developer has expressed an interest in acquiring that property for
the purpose of constructing a new manufacturing and\or building
material distribution facility at a cost of approximately $750,000 and
would create approximately ten (10) new employment positions.
IN WITNESS WHEREOF, the City has caused this Agreement to be duly
executed in its name and behalf and the Developer has caused this Agreement to be duly
executed in its name and behalf on or as of the date first above written.
CITY OF HASTINGS
By
Paul J. Hicks, Mayor
By
Melanie Mesko Lee, City Clerk
LANOGA CORPORATION
Dale Kukowski, President
By
By
Bryan Rice, Vice President
STATE OF MINNESOTA)
SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
2008, by Paul J. Hicks, and Melanie Mesko Lee, the Mayor and City Clerk
of the City of Hastings, a home rule charter city under the laws of the state of Minnesota.
Notary Public
STATE OF MINNESOTA)
SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
2008, by Dale Kukowski and Bryan Rice, the President and Vice
President, respectively, of Lanoga Corporation, a Minnesota corporation, on behalf of the
corporation.
Notary Public
This instalment drafted by:
City of Hastings (JWH)
101 4th Street East
Hastings, Minnesota 55033