HomeMy WebLinkAbout20080317 - VI-12March 12, 2008 VI-IZ
TO: The Honorable Mayor and Council
FROM: John Grossman, HRA Director
RE: Certificate of Satisfaction, Westview Properties, LLC
Background:
City Council approved the sale of 5.5 acres in the Industrial Park for $5.00 to Westview
Properties LLC under the terms of the City's Land Credit Program documented by the Purchase
and Development Agreement and the Business Subsidy Agreement dated January 4, 2005.
Certification of land credit balance:
The Purchase and Development Agreement provides that the City will calculate and certify
construction and jobs credit five years after sale. The total of the credits is subtracted from the
Purchase Price ($326,700) of the land at the time of the sale. If they do not exceed the land
value, the balance is due to the City. The agreements remain on the title until the City certifies that
all the Developer's obligations are met.
The Developer may also seek, before five years have passed, a determination that the credits
exceed the Purchase Price if the improvements have been completed, evidenced by the certificate
of occupancy, that the job goals have been met and there is no other default under the agreement.
The owners of Westview Properties, LLC have provided documentation as follows:
A. County Assessors January 2007 market value of the building: $2,550,000
Divided by 10 for a construction credit of: $255,000
B. 2007 Employer's Annual W-3 Tax Withholding report: 12-month payroll of $381,913.44
Divided by $27,000 (living wage} X $5,400 for a jobs credit of: $76,383.
C. Purchase Price (less $5.00} $326,695
Less credits $255,000 + $76,383 $331,383
Balance due City: $0.00
Other obligations:
The developer has also met the obligations under the Business Subsidy Agreement to complete
the improvements (building) with a value of at least $2,000,000, evidenced by Certificate of
Occupation dated 10-17-07, and to create at least 11 jobs on the property with an average wage
of at least $10.00 ($13.86 plus benefits).
The remaining obligation is to continuously operate the business on the property for five years
after moving in (temporary C of O). That will be completed August 25, 2010.
Staff recommendation:
There being no unpaid balance due the City, authorize the execution of the Certificate of
Satisfaction by the Mayor and City Clerk and the recording of the Certificate on the title to the
property.
2
CERTIFICATE OF SATISFACTION
This Certificate is executed this day of , 2008, by the City of
Hastings, Minnesota, a home rule charter city under the laws of the State of Minnesota (the
"City").
WITNESSETH:
WHEREAS, pursuant to a Purchase and Development Agreement dated as of January 4,
2005, (the "Development Agreement") and pursuant to a Warranty Deed dated January 4, 2005,
filed with the Dakota County recorder on , as Document No.
the City has conveyed to Westview Properties, LLC (the "Developer") certain real property
legally described as The East 440 feet of Lot 1, Block 3, Hastings Industrial Park Number 3,
according to the recorded plat thereof, Dakota County, Minnesota (the "Property"); and
WHEREAS, the Developer only paid a portion of the actual value of the Property in
consideration for the City's conveyance of the Property to the Developer but with the
understanding that if the Developer did not meet certain construction, job and wage goals, all or
a portion of the value of the Property not paid at the time of the closing on the conveyance to the
Developer would be payable by the Developer; and
WHEREAS, pursuant to the Agreement the Developer agreed that the Developer's
obligation to pay the value of the Property not paid at the closing on the conveyance would be
assessed as a lien (the "Assessments") against the Property, subject to discharge if and when the
Developer meets its construction, job and wage goals set forth in the Agreement; and
WHEREAS, the Agreement also provided that upon request by the Developer and upon
submission by the Developer to the City of documentation showing that the Developer has met
in full or in part its construction, job and wage goals the City would execute a certificate to be
recorded against the property evidencing the Developer's performance and discharging in whole
or in part the Assessments as a lien against the Property; and
WHEREAS, the Developer has provided to the City documentation sufficient to allow
the City to execute and deliver to the Developer this Certificate in accordance with the
provisions of the agreement.
NOW, THEREFORE, the City does hereby certify that the Assessments, as defined in
Section 3.8 of the Agreement, are hereby discharged and shall no longer be in force. This
Certificate shall not relieve the Developer of any other obligations of the Developer under the
Business Subsidy Agreement dated January 4, 2005.
IN WITNESS WHEREOF, the City has caused this Certificate to be executed as of the
date first written above.
CITY OF HASTINGS
(seal)
By
Paul J. Hicks, Mayor
By
Melanie Mesko Lee, City Clerk
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
This document was drafted by:
BRADLEY & DEIKE, P. A.
4018 West 65`~ Street, Suite 100
Edina, MN 55435
Telephone: (952) 926-5337