HomeMy WebLinkAbout20100216 - VI-21
Memo
To: Mayor Hicks and City Council
From: John Hinzman, Community Development Director
Date: February 16, 2010
SubjectCertificate of Satisfaction:
:Arthur G. “Bud” Miller – Miller
Electric – 2911 Enterprise Avenue
REQUEST
Authorize execution of the Certification of Satisfaction for the Arthur G. “Bud”
Miller Industrial Park Land Credit. The certificate would be recorded on the
property title upon receipt of the remaining balance of $6,456 due from Mr. Miller.
BACKGROUND
City council approved the sale of 2.4 acres in the Industrial Park for $2.00 to
Arthur G. Miller, Jr. in March, 2006, under the terms of a Development and
Business Subsidy Agreement. The unpaid balance of the land value at the time
was $140,792.
CERTIFICATION OF LAND CREDIT BALANCE
The land credit program provides that the unpaid balance is due five years after
sale. However, the total of the job and construction credits is subtracted from the
unpaid balance of the land value. If the credits do not exceed the land value, the
balance is due to the City. The owner also has the option to present payroll and
building value documentation anytime during the five years.Mr. Miller’s five
years would be up in April, 2011, but he has provided documentation at this time:
A. County Assessors market value of the building: $630,070.
Divided by 10 for a construction credit of: $63,007.
B. Twelve month payroll of $1,076,061, less $719,414 existing payroll in 2006:
$356,647 divided by $27,000 X $5,400 for a jobs credit of: $71,329.
C. Unpaid balance of land value: $140,792
Less credits of $63,007 + $71,329: $134,336
Balance due: $6,456
D. Mr. Miller chooses to pay the balance due and receive the certificate of
satisfaction at this time. The only remaining requirement, under the business
subsidy agreement, is to remain in business in Hastings until April, 2011.
CERTIFICATE
This Certificate
is executed this ____ day of ________________, 2010, 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 April 27,
2006. (the “Development Agreement”), the City has conveyed to Arthur G. Miller, Jr., (the
“Developer”) certain real property legally described as shown on Schedule A attached, and re-
platted on March 1, 2006 as Lot 5, Block 2, Hastings Industrial Park No. 7 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 documentation which is 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
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
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
_______________________, 2010, 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.
th
4018 West 65 Street, Suite 100
Edina, MN 55435
Telephone: (952) 926-5337