Loading...
HomeMy WebLinkAbout20120319 - VI-03 To: Mayor Hicks & City Council From: John Hinzman, Community Development Director Date: March 19, 2012 Item: Certificate of Satisfaction – Land Credit Subsidy – Jakata Properties (Eischen Cabinets – 625 Commerce Drive) City Council Action Requested: The City Council is asked to authorize signature of the attached Certificate of Satisfaction for completion of Industrial Park Land Credit Subsidy requirements for Jakata Properties. Background Information: On July 19, 2004 the City Council approved the Purchase, Development, and Business Subsidy Agreements for the sale of Lot 3, Block 1, Hastings Industrial Park No. 6 to Jakata Properties (Eischen Cabinets). The land was sold for one dollar with the remaining value deferred until certain job and property improvements were completed including: ! Creation of 2 new full time jobs at no less than $13 per hour. Completed. Four jobs at $15 per hour delivered. Certified by the City Council – May 17, 2010. ! Construction of a building valued at approximately $380,000 within one year. Completed. ! Remain in business for at least five years. Completed per attached resolution. Financial Impact: A $49,984 business subsidy was granted to Jakata (value of the property less one dollar). In return Jakata constructed an 11,000 s.f. building valued at over $380,000, added four jobs in excess of $15 and hour and pays property taxes in excess of $14,000 annually. Advisory Commission Discussion: N/A Council Committee Discussion: N/A Attachments: ! Certificate of Satisfaction City Council Memorandum CERTIFCATE OF SATISFACTION This Certificate is executed this 19th day of March, 2012, by the City of Hastings, Minnesota, a home rule charter city under the laws of the State of Minnesota (the “City”) WITTNESSETH: 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. (the “Developer”) certain real property legally described as Lot Three (3), 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 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 herby certify that the Assessments, as defined in Section 3.8 of the Agreement, are hereby discharged and shall no longer be in force. IN WITNESS THEREOF, The City has caused this Certificate to be executed as of the date first written above. CITY OF HASTINGS _______________________________ Paul J. Hicks, Mayor (City Seal) ________________________________ Melanie Mesko Lee, City Clerk STATE OF MINNESOTA) )SS. COUNTY OF DAKOTA I The foregoing instrument was acknowledged before me this _____ day of ________________, 2012 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 drafted by: BRADLEY & DEIKE, P. A. 4018 West 65th Street, Suite 100 Edina, MN 55435 Telephone (952) 926-5337 !