5.5.A&B SR 07-14-2003 - Laserfiche WebLink

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.,2003 MetroPlains Development, LLC 1600 University Avenue, Suite 212 St. Paul, MN 55104-3825 Re: Letter of Understanding City of Elk River Redevelopment To MetroPlains Development, LLC: This letter is written as evidence of "site control" by MetroPlains Development, LLC (the "Redeveloper"), of certain real property (the "Property") currently owned by the City of Elk River (the "City") for purposes of submitting an application for housing tax credits to the Minnesota Housing Financing Agency. A legal description of the Property is contained on Exhibit A to this letter of understanding. The Redeveloper and the Housing and Redevelopment Authority In and For the City of Elk River (the "Authority") entered into a Preliminary Redevelopment Agreement dated October 28, 2002. The Preliminary Redevelopment Agreement was extended by an amendment dated April 28, 2003. The Authority is the agency of the City responsible for the coordination and implementation of development and redevelopment activities on behalf of the City. The purpose of the Preliminary Redevelopment Agreement was to allow the Redeveloper to work with the Authority toward conceptualizing, designing and implementing one or more phases of a revitalization project in the downtown area of the City. As a part of that process, the Authority and the Redeveloper identified the Property as a site for a new development in the City. It is currently proposed that the Redeveloper will cause the construction of a development on the Property consisting of 32 units of tax credit housing with a three story underground parking facility and approximately 9,500 square feet of commercial space (the "Development"). The Redeveloper and the Authority have agreed to proceed in good faith with the negotiation and execution of a formal redevelopment agreement (the "Contract") implementing the proposed development. That Contract will provide, among other matters, that the Authority will convey the Property to the Redeveloper for construction of the Development. If the Contract is executed, subject to satisfaction of all conditions precedent in the Contract, the City will convey the Property to the Authority for conveyance to the Redeveloper or will convey the Property directly to the Redeveloper. The execution of the Contract is conditioned on each party determining in its discretion that executing the Contract is in its best interests. This letter of understanding shall be effective until December 31, 2004. If for any reason a Contract has not been entered into by the Authority and the Redeveloper within the term of this letter of understanding or any mutually approved extension thereof, this letter of understanding shall be null and void and neither the City nor the Redeveloper shall have any liability or obligations to the other. H:\SHRDOC\Downtown Revitalization\Memos~netroplains elk river letter of intent july 7.doc