A special meeting of the Hopkins Housing and Redevelopment Authority was held July 24, 2015, at Hopkins City Hall. Present were Chairman Eugene Maxwell, Commissioners Jason Gadd, Kristi Halverson and Aaron Kuznia. Commissioner Molly Cummings was absent. Also present was Assistant Executive Director Kersten Elverum.
The meeting was called to order at noon.
Approve Assignment and Assumption Agreement and Estoppel Certificate for Marketplace & Main
Ms. Elverum explained that Tax Increment District 1-4 was created to facilitate redevelopment of Hopkins Honda Body Shop/used car sales between 6th and 8th Avenues in 2006, and later sold to Marketplace Holdings, Inc., which developed 53 apartments, 5,500 square feet of retail space and 7 townhomes. Tax Increment Financing (TIF) was pledged through two notes with original principal amounts of $1 million and $360,000, respectively. The current holder of the TIF notes, Marketplace Holdings, Inc., is selling the property to Doran Marketplace, LLC, who has required the TIF to be transferred with no recourse associated with the look-back provisions in the redevelopment agreement. To give the buyer assurances, the HRA has been requested to consent to the Assignment and Assumption Agreement and Estoppel Certificate and clearly state that the HRA agrees to look solely to the seller for payment of look-back amounts. Currently there is disagreement about what is owed under the look-back provisions; therefore, $176,000 will be escrowed at closing and the final amount determined at a later date. Staff is requesting the authority to execute the documents necessary for the sale, including an Escrow Agreement for the look-back funds.
Ms. Elverum explained that the first document acknowledges the development agreement will be assumed and calls out that no liability will be assumed by Doran Marketplace, LLC.
The second document, an escrow agreement, holds $176,000 from the sale under the look-back provisions to be released in accordance with the terms of a written agreement between the parties or in accordance with the terms of a court order.
The third and fourth agreements pertain to Phases I and II and confirm their approval and assignment. Staff is asking for authorization to make modifications to these or other documents needed for closing.
Mayor Maxwell asked whether the easement deal was finalized. Ms. Elverum stated she believes it has been.
Commissioner Gadd asked whether the $176,000 figure, if deemed to be more, could be changed. Ms. Elverum stated that the escrow and other agreements would allow for that to happen.
Commissioner Gadd moved, Commissioner Kuznia seconded, to approve the Assignment and Assumption Agreement and Estoppel Certificate for Marketplace & Main and authorize execution of consent and additional documents needed to complete the sale, including an escrow agreement, and the assignment of the Phase I and Phase II TIF notes. The motion was approved unanimously.
Commissioner Halverson moved, Commissioner Kuznia seconded, to adjourn the meeting. The motion was approved unanimously. The meeting adjourned at 12:08 p.m.