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277568 WHITE - CITY CLERK �• /��Q PINK - FINANCE t �� CANARY - DEPARTMENT G I TY OF SA I NT PALT L COUIICII �� s v BLUE - MAYOR File N . Council Resolution Presented By Referred To Committee: Date Out of Committee By Date WHEREAS, the City is in receipt of a development proposal for a $2.5 million, 50,000 square foot office building, located at Arcade and Minnehaha Avenues, as part of the East 7th Street UDAG project ��B-79-AA-27-0009 from developers Richard Nordlund and Edward Sheehy; and WHEREAS, said proposal has been approved by the East 7th Street Foundation, the Greater East Side Local Development Corporation, and the HRA, and is in conformance with the Development District Plan; and WHEREAS, the UDAG project allocates funds to help defray developers acquisition and site preparation costs since it was not necessary for the City to directly acquire properties; NOW THEREFORE BE IT RESOLVED that the City Council authorizes staff to enter into the Letter of Understanding and allocates up to $210,000 of UDAG monies for acquisition and site preparation cost incurred by the developers from account code 36902-551-022; and BE IT FURTHER RESOLVED that staff is authorized to enter into a participation agreement in conformance with the Letter of Understanding and the UDAG Agreement. ncing A p e : e� S/ Director, De . of Finance & Ma.nagement !�" COUNCILMEN Requestgd b Depart nt of: Yeas Nays Hunt t.eM;wa� In Favor Maddox �, McMahon B snowalter __ Against Y � Wilson Adopted by Council: Date O�� 0 1981 Form Approve City orn _ ` Certified Passed by Council Se ary BY B� �> A v by ;�lavor: �CT �. 3 �98, Approved by Mayor for Submission to Council B BY ��L/(��' � Pua�;Si-iED OCT 2 41981 . � � � ��'75�8 LETTER OF UNDERSTANDING MINNEHAHA OFFICE PROJECT EAST 7TH UDAG September 23, 198I Mayor George Latimer Mayor, City of St. Paul 347 Courthouse St. Paul, MN 55102 Mr. James Bellus Executive Director HRA 14th Floor City Hall Annex 25 W. 4th St. St. Paul, MN 55102 Attn: Mark 0. Senn , Dpar Sir�: This Letter of Understanding formalizes the various points of understanding which have been agreed upon throughout our discussions concerning the � development of the East 7th St. UDAG site lacated off Arcade and Minnehaha Avereues and the signatures on this letter acknowledge the mutual agreement to these points which will subsequently be reflected in the Land Sale Agreement between the HRA, the City, and Developers Edward Sheehy and Richard Nardlund. 1. Scope of Project Developer agrees that he shall construct minimally a 50,000 squar� foot office building with ample parking meeting zoning requirements on the prescribed site (Se.e Exhibit A) . Developer also agrees to make a reasonable effort in securing McDonald's as a Phase II development on the most easterly portion of the site running along Arcade Street. Any changes in the scope of this project are subject to the approval of the City/HRA and HUD. The developer will submit plans and specif ications for the proposed office building prior to ��"G=1�. j / j�/ 2. Parking Zoning requires one space per 200 sq. ft. of usable floor space. Minimum Letter of Understanding September 23, 1981 Page -2- Layout dimensions require maneuvering lane width of ZO ft. for 90° parking. Curbs, wheelstops, or earth berms are required to prevent vehicles from damaging or overhanging adjacent property or public right of way. , . � - _ Zoning also requires visual screening/landscaping of parki.ng areas. Pravisions for storm water drainage or retentiore and absorption should be provided within the lotse Adequate lighting will also be grovided to properly illuminate parking areas and entrances: Any changes from the approved plans and specifications are subject to the approval o� the City/HRA. 3. Public Improvements . The developer at his expense will provide new sidewalks, curbs, and gutters authorized through Public Works permits, along Minnehaha Avenue adjacent. to the site. The developer will also repair any public improvements damaged during the course of development. 4. Excess Fill The developer will furnish at no cost all excess fill to a precietermined location for St. Johns Evangelical Church on vacated Hope Street. 5. I. The developer agrees to secure the following property parcels, as clescribed on Exhibit "A", in the prescribed manner: A. A2 and A3 - Purchase Agreement between developers and Lee. B. G - Purchase new site from 3M for $25,000 and construct a substitute facility for Windy's Auto Body, then through transfer agreement exchange titles and obtain title to G. from Windy's. C. F - The Purchase Option will be assigned by the LDC to the developer and the developer will enter into a purchase agreement prior to Qctober 1, 1981 with Rinkle and reimburse the Post Office tor any Iease costs after September 1, 1981 not to exceed $50Q.00. Le.tter of Understanding September 23, 1981 Page -3- D. K- Developer and City/HRA will apply for vacation of northerly � of Beech Street covering the distance ot- the parking area only after secure title is obtained for Lee Property. J. J - Developer and City/HRA will apply for Vacatian after title is secured to Windy's and Rinkle's praperty. E. E - The developer will continue toward working a trade for the Broze property; if unsuccessful, the developer will so notify the City/ HRA and the City/HRA will use its best efforts to acquire the property. II. The HRA agrees to enter into a Land Sales Contract to convey H and I by quick claim deed to the developer for $1,600.Q0 and will provide current title binder evidencing marketable title. 6. The City/HRA will provide new sidewalks, curbs, on Areade adjacent to i=he site and will provide a curb cut at vacated Beech Street as an aecess point, with na assessment to developer. � _ 7. The HRA/City from UDAG funds, will reimburse the developer for $ZOO,Q00 dollars of expenses incurred in acquisition, site preparation, etc. However, if it becomes necessary for the City to condemn the Broze property, the developer will reimburse the City/HRA for all of the costs of the comdemnation and wi11 furnish letter of credit to the City/HRA for the interim period. . •• � Letter of Understanding September 23, 1981 Page -4- CITY OF SAINT PAUL AND ARA EDS CON ON By Mayor ' Mr. Edward Sheehy Developer By Director, Dept. of Finance and � � . Managem S ce � ' Mr. Richard Nor lund By ^ - Developer Di or, D'�par ment of Planning an,�E onomic�Be elopment APPROVED , 1981 and Executive Director of the HRA GREATER EAST SIDE LOCAL•DEVELOPMENT CORPORATION By Assistant Secretary of the HRA By ��``/ f �� , ��'�� Itis � '" FORM APP �IED B� T , . ---�TTORNEY By C��ri�.�o �'�/� /��Z�.G�O� �Q�,-/✓�, � � � Tts /�_- %�� r,,/� ,,�� . . � i /y - � ` OM 01: i2/197� Rev. : S/8/?6 R+av. : 5/7,ISt1 EXPLANATIQN OF ADMINISTRATIIf� t�IERS, R�v. : 4/3aj81 RESOLtiTI�tS I�ID OI�INANf.E� �i�f��,�t] O�tC: October 2, 1981 T0: Mayor Latimer FROP4: Mark Senn, I?owntown Operations, PED/�� ' RE: Attached Couneil Resolution Minnehaha Office Building Letter o£ Uac�erstanding East 7th UDAG ACTION REQUESTED: Signature on Resolution � Pt1RPOSE ANO RATIE�tALE FOR THiS ACTION: This Resolution authorizes PED staff to execute Letter of 'Underatanding bstween City and deve�opers of said property, ,loc�ted at Areade and Minnehaha Avenues. - �._ Letter of Umderstanding between City and developers Ed Sh�ehy aa�i Richard Nordlund clarifies the conditions under wh3.ch prr►perty above - will be sold to them. � _ FIM�tNCIAI IMPACT: � City will reimburse the developers $�10,000 in acquisition &_ preparatiara cost; from th� UDAG fund, which has already been budgeted for this purpase. The City will also make necessary public improvemtnts :to the ad3acent street and curb which has also been budgeted from the UDAG fund for t'his purpose. The City will u7.timatelq rea3ize benefit from a 2.5 million dallar offiee building being proposed by tha developer under this agreement. - ATTACt�£NTS: Council Reeo].ution. Copy of I,�tter of Ui�tderstanding between City/Developer :