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Home My WebLink AboutVIII-13 NJS LLC (Stencil) - Termination of Purchase and Development Agreement - Approval of Separate Purchase and Development AgreementsCity Council Memorandum To: Mayor Fasbender and City Council From: Eric Maass, AICP, EDFP, Economic Development Coordinator Date: April 12, 2022 Item: Adopt Resolution Terminating and Canceling Existing Contract for Private Development with NJS Development, LLC for former UBC Site. Council Action Requested: Adopt Resolution Terminating and Canceling Existing Contract for Private Development with NJS Development, LLC for former UBC Site. Background Information: The City Attorney’s office was queuing items up for the closing and noticed that because the property is being Platted we need to terminate the existing contract for private development agreement that includes both a development agreement and purchase agreement. In order to account for the plat, and make sure things appear on title correctly we need to rescind the current development and purchase agreements in favor of a singular purchase agreement. There are no substantive changes to the new purchase agreement, simply the changing of the ownership LLC. HEDRA will be considering the new purchase agreement at their meeting on April 14th, 2022. Due to timing of City Council packet preparation and the HEDRA meeting, Staff will update the City Council on HEDRA’s action. The City Council does not need to approve of the new purchase agreement between HEDRA and Lake Isabelle Flats, LLC and NSKW Land, LLC. Another public hearing is not required. The 89 unit apartment project is still on track for construction in 2022. Financial Impact: No financial impact. Advisory Commission Discussion: HEDRA will consider Resolution No 2022-23 Approving the existing purchase and development agreement termination and authorized signature for the new purchase agreement with between HEDRA and Lake Isabelle Flats, LLC and NSKW Land, LLC related to the redevelopment of the former UBC site. Council Committee Discussion: N/A Attachments: •Resolution VIII-13 1 HASTINGS CITY COUNCIL RESOLUTION NO. A RESOLUTION TERMINATING AND CANCELLING THE CONTRACT FOR PRIVATE REDEVELOPMENT WITH NJS DEVELOPMENT LLC DATED NOVEMBER 11, 2021 AND THE FIRST AMENDMENT TO DEVELOPMENT AGREEMENT DATED FEBRUARY 7, 2022 Council member ________________ introduced the following resolution and moved its adoption: WHEREAS, on September 20, 2021, by and through Resolution No. 09-13-21, the City Council approved the Contract for Private Redevelopment (“Original Development Agreement”) by and between the Hastings Economic Development and Redevelopment Authority and the City of Hastings and NJS Development LLC (“Developer”) for the real property legally described on Exhibit A (the “HEDRA Property”) for a redevelopment project (“Project”); and WHEREAS, on November 15, 2021, by and through Resolution No. 11-11-2021, the City Council terminated the Original Development Agreement, as the Original Development Agreement inadvertently omitted a parcel that is necessary for the Project, and approved a new Contract for Private Redevelopment (“New Development Agreement”) for constructing the Project on the real property legally described on Exhibit B (the “Property”); and WHEREAS, on February 7, 2022, by and through Resolution No. 02-04-22, the New Development Agreement was amended (“First Amendment to Development Agreement”) to extend the Closing Date to allow additional time to submit the Construction Plans; and WHEREAS, the New Development Agreement and the First Amendment to Development Agreement shall be collectively referred to hereinafter as the “Agreements”; and WHEREAS, it has been determined that the Agreements are no longer necessary for the Project; and WHEREAS, the parties mutually desire to terminate and cancel the Agreements. NOW THEREFORE BE IT RESOLVED by the City Council of the City of Hastings that the Agreements are hereby terminated and canceled. Council member ________________ moved a second to this resolution and upon being put to a vote it was adopted by the Council Members present. Adopted by the Hastings City Council on April 18, 2022, by the following vote: Ayes: Nays: Absent: VIII-13 2 Mary Fasbender, Mayor ATTEST: Kelly Murtaugh, City Clerk (City Seal) I HEREBY CERTIFY that the above is a true and correct copy of the resolution presented to and adopted by the City of Hastings, County of Dakota, Minnesota, on the 18th day of April, 2022, as disclosed by the records of the City of Hastings on file and of record in the office. Kelly Murtaugh, City Clerk (Seal) VIII-13 A-1 EXHIBIT A LEGAL DESCRIPTION OF HEDRA PROPERTY Real property in Dakota County, Minnesota legally described as follows: PID: 19-32150-17-020 (Abstract Property) All of Lot One (1), Block Seventeen (17) in the Town of Hastings, excepting therefrom, however, all that portion lying northeasterly of a line 25 feet southwesterly of, measured at right angles and parallel with, the centerline of Chicago, Milwaukee, St. Paul, and Pacific Railroad Company’s spur track as now there laid across Bailey Street in said Town of Hastings, Dakota County, Minnesota; and ALSO All of Lot Two (2), Block Seventeen (17), Town of Hastings, excepting therefrom the West two- thirds (W 2/3) of the North half (N 1/2) of said Lot Two (2) and further excepting therefrom the West one-third (W 1/3) of the South half (S 1/2) of said Lot Two (2), Town of Hastings, Dakota County, Minnesota, together with those parts vacated and accruing thereto by virtue of the vacations thereof. PID: 19-32150-17-021 (Abstract Property) The North 1/2 of the West 1/2 of the East 2/3 of Lot 2 and the West 1/3 of Lot 2, Block 17, Town of Hastings, Dakota County, Minnesota, together with those parts vacated and accruing thereto by virtue of the vacations thereof. PID: 19-32150-17-080 (Abstract Property) Lots 7 and 8, Block 17, Town of Hastings, Dakota County, Minnesota, together with those parts vacated and accruing thereto by virtue of the vacations thereof. VIII-13 B-1 EXHIBIT B LEGAL DESCRIPTION OF PROPERTY Real property in Dakota County, Minnesota legally described as follows: PID: 19-32150-17-030 (Abstract Property) Lot Three (3) in Block Seventeen (17) in the Town (now city) of Hastings, according to the plat thereof now on file and of record in the office of the County Recorder in and for Dakota County, Minnesota. PID: 19-32150-17-020 (Abstract Property) All of Lot One (1), Block Seventeen (17) in the Town of Hastings, excepting therefrom, however, all that portion lying northeasterly of a line 25 feet southwesterly of, measured at right angles and parallel with, the centerline of Chicago, Milwaukee, St. Paul, and Pacific Railroad Company’s spur track as now there laid across Bailey Street in said Town of Hastings, Dakota County, Minnesota; and ALSO All of Lot Two (2), Block Seventeen (17), Town of Hastings, excepting therefrom the West two- thirds (W 2/3) of the North half (N 1/2) of said Lot Two (2) and further excepting therefrom the West one-third (W 1/3) of the South half (S 1/2) of said Lot Two (2), Town of Hastings, Dakota County, Minnesota, together with those parts vacated and accruing thereto by virtue of the vacations thereof. PID: 19-32150-17-021 (Abstract Property) The North 1/2 of the West 1/2 of the East 2/3 of Lot 2 and the West 1/3 of Lot 2, Block 17, Town of Hastings, Dakota County, Minnesota, together with those parts vacated and accruing thereto by virtue of the vacations thereof. PID: 19-32150-17-080 (Abstract Property) Lots 7 and 8, Block 17, Town of Hastings, Dakota County, Minnesota, together with those parts vacated and accruing thereto by virtue of the vacations thereof. VIII-13