HomeMy WebLinkAbout20070917 - VI-15
September 11, 2007
VI-IS
TO:
The Honorable Mayor and Council
FROM:
John Grossman, lIRA Director
RE:
Certificate of Satisfaction, Lawrence Interiors & Building Center.
Background:
City Council approved the sale of2.2 acres in the Industrial Park for $2.00 to Lawrence Interiors
& Building Center in 2002 under the terms of the City's Land Credit Program.
Certification of land credit balance:
The land credit program provides that the City calculate and certifY construction and jobs credit
five years after sale. The total of the credits is subtracted from the value of the land at the time of
the sale. If they do not exceed the land value, the balance is due to the City. There is a lien on
the title until the City certifies that the goals are met. The owners of Lawrence Interiors &
Building Center have provided documentation as follows:
A. County Assessors 2007 market value ofthe building:
$1,201,500
Divided by 10 for a construction credit of:
$120,150
B. 2006/7 12-month payroll of $403,999, less $330,872 payroll at the time of sale: $73,127
Divided by $27,000 (living wage) X $5,400 for ajobs credit of: $14,625
The payroll is documented by Employer's Quarterly State Income Tax Withholding reports.
C. Unpaid value ofland:
$98,830
Less credits $120,150 + $14,625 =
$134,775
$35,845 in excess of unpaid value
Unpaid balance due:
$0.00
Staff recommendation:
There being no unpaid balance due the City, authorize the execution ofthe Certificate of
Satisfaction by the Mayor and City Clerk and the recording of the Certificate on the title to the
property.
1
CERTIFICATE OF SATISFACTION
This Certificate is executed this _ day of , 2007, by the City of
Hastings, Minnesota, a home rule charter city under the laws of the State of Minnesota (the
"City").
WITNESSETH:
WHEREAS, pursuant toa Purchase and Development Agreement dated as of October 1,
2002, (the "Development Agreement") and pursuant to a Warranty Deed dated October 1,2002,
filed with the Dakota County recorder on October 3, 2002 as Docwnent No. 477605, the City has
conveyed to Lawrence Interiors & Building Center, Inc. (the "Developer") certain real property
legally described as Lots Five (5) and Six (6) Block One (1), Hastings Industrial Park Number 6,
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 and wage and job 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 and wage and job 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 and wage and job 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 docwnentation 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 defmed in
Section 3.8 of the Agreement, are hereby discharged and shall no longer be in force.
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
, 2007, 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 65th Street, Suite 100
Edina, MN 55435
Telephone: (952) 926-5337