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269673 WHITE - CITV CLERK � � j'��-���� PINK - FINANCE CO�lI1C1I �� �' �- CANARV - DEPARTMENT � G I TY OF SA I NT PAU L � � BLUE - MAVOR- � Flle NO. H� uncil Resolution Presented By Referred To Committee: Date Out of Committee By Date WHEREAS, the City of Saint Paul has entered into a four party agreement for development of Block 7A with the Housing and Redevelop- ment Authority of the City of Saint Paul, Minnesota, The Science Museum of Minnesota, and Sherman-Antler Joint Ventu�e; and WHEREAS, an amendatory agreement to substitute Fountain Develop- ment, a Minnesota general partnership, for Sherman-Antler Joint Venture, has been presented; and - WHEREAS, the Housing . and Redevelopment Authority of the City of Saint Paul, Minnesota has approved the Third Amendatory Development Agreement, attached hereto, and has approved an Assumption Agreement substituting Foun�ain Development for Sherman-Antler Joint Venture. NOW THEREFORE, BE IT RESOLVED that the Third Amendatory Develop- ment Agreement is approved, and the proper City officers are authorized and directed to execute the Agreement. COUNCILMEIV Requested by Department of: Yeas Nays � Butler Hozza � In Favor -�e v __ Against BY Roedler Sylvester Tedesco AUG 3 O �977 Form Appro ed by City Attorney Adopted by Council• Date Certified ss y Council Secretary BY i Approve iVlavor: Date �'S�P � �97 Approv d by Ma or fot bmis ' to C uncil By BY PUBLISHED S�P 1 Q 1977 � � � ,� ���`���� ,� GITY OF SAINT PAUL �4�B4�B�B� <)I''1''I Ci]: O 1' '1'I I�: �I_1 Y<)1: ��ime�eae�e �g`���eB GEORGE LATIMEA AUCJUSt Z S� �.9 77 MAYO R The Honorable Robert Sylvester, Council President and Council Members Attached is the Third Amendatory Development Agreement between the St. Paul HRA, City of Saint Paul, The Science Museum of Minnesota, and Fountain Development. The Four Party Agreement and an Assumption Agreement substituting Fountain Development for Sherman-Antler Joint Venture were approved by the St. Paul HRA Board on August 24 , 1977. The Four Party Agreement involves the various relationships that exist between the entities who are constructing the medical office building, apartment, and science museum on Block 7A. Changes in the Agreement affecting the City - 1) fixes October 15, 1977 (one-half) and December 31, 1977 (balance) for payment to the City of $101, 959. 00 (subject to verification by the City Architect' s office) ; 2) do not impose upon Fountain Development the obligation of Sherman-Antler Joint Venture, and releases the Joint Venture from obligation to pay as liquidated damages , three years debt service on ramp bonds in the event the developer does not complete construction of the medical office building and apartment complex. On item 2) , Fountain Development, consisting of Sherman Investment Corporation and Sheehy Properties , Inc. , will not accept the liquidated damages provision. With merit, Fountain points out that the museum and medical office and galleria will proceed; that whether the apartment proceeds is solely up to MHFA; that to obtain MHFA approval, the developer has committed substantial resources through commitments for letters of credit and commercial space lease rental guaranties; and that the liquidated damage provision creates an additional risk of loss which is beyond their control and is therefore not acceptable to them, or, in their opinion, to any other private developer. The liquidated damage provision was properly incorporated into the Develop�nt Agreement at a time when the City proceeded with ramp construction upon the commitments from the air rights developers that a museum, galleria, medical office and apartment buildings would be built. O � � �`�� ��- � � -2- Construction of three of the four buildings is reasonably assured, and with this and the potential for other development on the apartment site, the City's interest is presently protected. Your approval of the Third Amendatory Development Agreement is requested. Yours truly, �u����� Georg Latimer Mayor � � . � � C� �- • lst L�� ��'` � � 2nd .. � �D 3rd ��l-�` Adopted � Yeas Nays BUTLER HOZZA H�T ���46`�4 J�" LEVINE ROEDLER � � � TEDESCO , , i PRESIDENT (SYLVESTER) \ _�.___ - - - .