HomeMy WebLinkAbout20100517 - VI-02Memo
To: Mayor Hicks and City Council
From: John Hinzman, Community Development Director
Date: May 17, 2010
SubjectCertificate of Satisfaction:
:Jakata Properties, Inc. – Eischen
Cabinets – 625 Commerce Drive
REQUEST
The City Council is asked to authorize execution of the attached Certification of
Satisfaction for the Jakata Properties, Inc. Industrial Park Land Credit. Jakata
has satisfied the terms of the agreement and does not owe any additional funds.
BACKGROUND
The City and Jakata entered into the Business Subsidy Agreement on May 5,
2005. Jakata received 0.85 acres in the Industrial Park for $1.00, with $49,984 of
land value deferred for five years subject to meeting property improvement and
wage goals.
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. Jakata has provided
the following documentation:
A. County Assessors market value of the building: $432,000.
Divided by 10 for a construction credit of: $43,200.
B. Twelve month payroll of $832,905, less $744,646 existing payroll in 2005 = $88,259:
$88,259 divided by $27,000 X $5,400 for a jobs credit of: $17,652.
C. Unpaid balance of land value: $49,984
Less credits of $43,200 + $17,652: $60,852
Balance due: ($10,868)
ATTACHMENT
Certificate of Satisfaction
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 May 5, 2005 (the
“Development Agreement”), the City has conveyed to Jakata Properties, Inc., a Minnesota
corporation (the “Developer”) certain real property legally described as Lot 3, Block 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;
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 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 as follows:
1.The principal amount of the Assessments levied or to be levied against the
Property pursuant to the terms of the Agreement is $49,984.00.
2.As of the date hereof, because of the Developer’s performance of its construction
covenants and achievement of the wage and job goals set forth in the Agreement, the principal
amount of the Assessments has been reduced by the amount of $_____0________.
3.The remaining principal balance of the Assessments, subject to further reduction
as provided in the Agreement, is $___0_____.
IN WITNESS WHEREOF
, the City has caused this Certificate to be executed as of the
date first written above.
CITY OF HASTINGS
By_________________________________
Paul Hicks, Mayor
(Seal)
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 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