4.4. SR 05-04-2020 - Laserfiche WebLink

Home Browse Search

PRELIMINARY DEVELOPMENT AGREEMENT THIS AGREEMENT, made and entered into this 7 day of October, 2019 by and between the City of Elk River, a Minnesota municipal corporation (the "City"), the Housing and Redevelopment Authority of the City of Elk River, a public body corporate and politic under the laws of the State of Minnesota (the "Authority"), and Modern Construction of Minnesota, Inc., a Minnesota corporation (the "Developer"). RECITALS WHEREAS, the City and the Authority desire to promote redevelopment of certain property within the City of Elk River, which property is described on Exhibit A attached hereto (the "Property"); and WHEREAS, the Developer has requested the City and the Authority explore the use of certain public assistance, financial, and otherwise, to assist with the construction of multi -family housing and commercial buildings on the Property, hereafter referred to as the "Redevelopment"; and WHEREAS, the City and the Authority have determined that it is in their best interest that the Developer be designated sole developer of the Property during the term of this Agreement; and WHEREAS, the City, the Authority, and the Developer are willing and desirous to undertake the Redevelopment if: (i) a satisfactory agreement can be reached regarding the City or the Authority's commitment for public assistance necessary for the Redevelopment; (ii) satisfactory mortgage and equity financing, or adequate cash resources for the Redevelopment can be secured by the Developer; (iii) the economic feasibility and soundness of the Redevelopment can be demonstrated; (iv) satisfactory terms of conveyance of the Property to the Developer can be negotiated; and (v) satisfactory resolution of zoning, land use, site design, and engineering issues, and other necessary preconditions have been determined to the satisfaction of the parties; and WHEREAS, the City and the Authority are willing to evaluate the Redevelopment and work toward all necessary agreements with the Developer if the Developer agrees to reimburse the City for the City and the Authority's costs relating to the Redevelopment even if the Redevelopment is abandoned or necessary agreements are not reached under the terms of this Agreement. NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and obligations set forth herein, the parties agree as follows: Section 1. Intention of Parties. It is the intention of the parties that this Agreement: (a) documents the present understanding and commitments of the parties; and (b) will lead to negotiation and execution of a mutually satisfactory Contract for Private Redevelopment (the "Contract"). The Contract (together with any other agreements entered into between the parties hereto contemporaneously therewith) if executed, will supersede all obligations of the parties hereunder. 614738v3EL185-54