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Home My WebLink AboutX-B-5 Agreement for Alley Cost Split City Council Memorandum To: Mayor Fasbender & City Councilmembers From: John Hinzman, Community Development Director Date: May 20, 2019 Item: Authorize Signature: Cost Sharing Agreement for Alley Improvements – Great River Landing Parking Ramp Council Action Requested: Authorize signature of the attached Cost Sharing Agreement for Alley Improvements between the City and Confluence Development LLC for the alley located directly south of the Great River Landing Parking Ramp. The agreement commits the City to pay for 50 percent of the cost of improving the alley with a maximum contribution of $20,000. Authorization requires a simple majority of the City Council. Background Information: The subject alley provides access to the 88 2nd story parking stalls of the ramp. The alley is in poor condition and is not scheduled for improvements in the near future. City staff and Confluence are in agreement that the alley should be improved prior to completion of the parking ramp. Financial Impact: The cost share agreement would result in future reconstruction savings to the City. Completing the alley improvements as a public project would result in the City paying a greater percentage of the alley cost, with Confluence paying a lower share of the cost. The maximum City contribution will be $20,000 with funding allocated from residual bond funds. We will pay off bond issuance 2007A in 2019 and anticipate approximately $30,000 to be available. Council Committee Discussion: N\A Advisory Commission Discussion: N\A Attachments:  Site Pictures  Cost Sharing Agreement X-B-5 SITE PICTURES Courtesy of Nick Egger X-B-5 COST SHARING AGREEMENT FOR ALLEY IMPROVEMENTS THIS COST SHARING AGREEMENT FOR ALLEY IMPROVEMENTS (the “Cost Share Agreement”), is made on or as of the ____ day of May, 2019, by and among the City of Hastings, a home rule charter city under the laws of the State of Minnesota (hereinafter referred to as the "City"), having its principal office at 101 Fourth Street East, Hastings, Minnesota 55033, and Confluence Development LLC, a Minnesota limited liability company (hereinafter referred to as the "Redeveloper"), having its principal office at 101 East 10th Street, Suite 300, Hastings, Minnesota 55033. RECITALS: WHEREAS, the Hastings Economic Development and Redevelopment Authority (hereinafter referred to as the “Authority”), the City and the Redeveloper have entered into that certain Purchase and Development Agreement dated January 18, 2016 (the “Original Agreement”), as amended by that certain First Amendment to Purchase and Development Agreement dated January 2, 2018 (the “First Amendment”) and as further amended by that certain Second Amendment to Purchase and Development Agreement dated July 23, 2018 (the “Second Amendment”) (the Original Agreement, the First Amendment, and the Second Amendment to be collectively referred to hereinafter as the “Agreement”) pursuant to which the Authority agreed to sell certain real property to the Redeveloper, for the purpose of rehabilitating the building located on such property (as defined in the Agreement, the “Redevelopment Property”) and further by which the Redeveloper agreed to construct a parking ramp (as defined in the Agreement, the “Parking Ramp”) on property owned by the Redeveloper adjacent to the Redevelopment Property (as defined in the Agreement, the “FNB Property”). WHEREAS, there exists a public alley (hereinafter referred to as the “Alley”) lying south of and adjacent to the FNB Property which runs between Eddy Street and Vermillion Street and which is depicted in more detail on the attached Exhibit A. The Alley will provide access to the Parking Ramp and the FNB Property. WHEREAS, the condition of the Alley surface has deteriorated and the City and Redeveloper have agreed that repairs and improvements to the Alley should be undertaken at the same time the Parking Ramp improvements are completed. The Redeveloper has obtained a quote to complete the proposed repairs and improvements in the amount of Forty-Two Thousand, Four Hundred Fifty-Eight and no/100 Dollars ($42,458.00) (the “Maximum Price”). WHEREAS, the City and the Redeveloper have agreed to share the costs of the specified repairs to the Alley and desire to enter into this Cost Share Agreement to set forth their agreement. NOW, THEREFORE, the parties hereby agree as follows: Section 1. Words and terms used herein and not otherwise defined shall have the meanings assigned to them in the Agreement. The foregoing Recitals are incorporated herein by reference to the same extent as if they were repeated here. X-B-5 Section 2. The Redeveloper shall undertake and contract for the repairs and improvements to the Alley (hereinafter referred to as the “Alley Work”) according to the plans and specifications prepared by the Redeveloper and attached hereto as Exhibit A (the “Approved Plans”), and subject to all reasonable oversight and inspection required by the City for projects undertaken within public rights-of-way, provided that no bonds, letters of credit or other security, or inspection escrows or payments shall be required from the Redeveloper in connection with the Alley Work. The Redeveloper shall cause the Alley Work to be performed on a time and material basis not to exceed the Maximum Price. Redeveloper shall instruct its contractors performing the Alley Work to track and maintain records of all quantities and expenditures for the Alley Work. The Redeveloper shall submit to the City copies of invoices, bills, rate sheets, and/or other documentation customarily used to verify billings on a time and material basis (the “Billing Documentation”) along with submission of the City Payment Invoice, as defined in Section 3 hereof. Redeveloper shall secure and assign to City its rights in a one-year warranty covering the Alley Work. Section 3. Upon completion of the Alley Work and subject to the City’s reasonable approval that the Alley Work has been completed in accordance with the Approved Plans, the Redeveloper shall submit an invoice to the City for the City’s share of the cost of the Alley Work (the “City Payment Invoice”), which amount shall be the lesser of: (a) one-half (1/2) of the actual costs incurred by the Redeveloper for the Alley Work, or (b) Twenty Thousand and no/100 Dollars ($20,000.00). Subject to the City’s prompt review of the City Payment Invoice and confirmation that the cost is supported by Billing Documentation, the City shall pay the amount of the City Payment Invoice to the Redeveloper within 21 days of receipt of the City Payment Invoice and Billing Documentation. Section 4. The City and Redeveloper shall each maintain books, records, documents and other evidence pertaining to the costs or expenses associated with the work performed pursuant to this Cost Share Agreement. Upon request, the City and Redeveloper shall each allow the Legislative Auditor or the State Auditor to inspect, audit, copy or abstract all of the books, records, papers or other documents relevant to this Cost Share Agreement as required by Minnesota Statutes Section 16C.05. The parties shall each use generally accepted accounting principles in the maintenance of such books and records, and shall retain all such books, records, documents and other evidence for a period of six (6) years from the date of the completion of the activities funded by this Cost Share Agreement. [Signature Page Follows] X-B-5 IN WITNESS WHEREOF, the City and the Redeveloper have caused this Cost Share Agreement to be duly executed in their names and on their behalf on or as of the date first above written. CITY OF HASTINGS, MINNESOTA By_________________________________ Mary Fasbender, Mayor By_________________________________ Julie Flaten, City Clerk STATE OF MINNESOTA ) ) SS. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this _____ day of May 2019, by Mary Fasbender and Julie Flaten, the Mayor and the City Clerk of the City of Hastings, Minnesota, a statutory city under the laws of the State of Minnesota. ______________________________ Notary Public X-B-5 CONFLUENCE DEVELOPMENT, LLC By_________________________________ Patrick Regan Its: Vice President STATE OF MINNESOTA ) ) SS. COUNTY OF DAKOTA ) The foregoing instrument was acknowledged before me this _____ day of May 2019, by Patrick Regan, the Vice President of Confluence Development LLC, a Minnesota limited liability company. ______________________________ Notary Public This document was drafted by: Daniel J. Fluegel FLUEGEL LAW FIRM P.A. 999 Westview Drive, Suite 1 Hastings, MN 55033 Phone: 651-438-9777 dan@fluegel.com X-B-5 EXHIBIT A ALLEY DEPICTION AND APPROVED PLANS See attached depiction of Alley and Approved Plans X-B-5 X - B - 5 X - B - 5 X - B - 5