HomeMy WebLinkAbout2015-014A (Terminating Stillwater Caves Development Contract) RESOLUTION 2015-014A
A RESOLUTION TERMINATING DEVELOPMENT CONTRACT
WHEREAS, on the 3rd of December, 2013 the City approved a Development Contract
(the Contract) with Stillwater Caves LLC, a Minnesota Limited Liability Company for the
Redevelopment of parts of the Plat of Joseph Wolf Brewery Addition into a 35 room boutique
hotel, retail space and a 60— 80 seat restaurant, (the Minimum Improvements), and;
WHEREAS, the Contract required that the Redeveloper furnish to the City, by
August 15th, 2014, evidence of funded mortgage financing or owner's equity in an amount
sufficient to fund construction of minimum improvements, and executed binding construction
contracts for the construction of the Minimum Improvements, and;
WHEREAS, both requirements were defined by the Contract to be Conditions Precedent
to City liability under the Contract, and;
WHEREAS, the Redevelopers failed to satisfy either Condition Precedent by
August 15th, 2014, however, at the request of the Redevelopers, the City granted the
Redevelopers and extension of time in which to satisfy the Conditions Precedent until December
31St, 2104, and;
WHEREAS, on January 5th, 2015 the Redeveloper delivered to the City a letter from
Dave Rasmussen stating that Grandbridge Bank, (the Bank) 22 South 9th Street Suite 3200,
Minneapolis, MN, 55402 stating that the Bank was in a position to commence external due
diligence and to order an appraisal and third party reports in order to consider financing the
Minimum Improvements, however this letter of interest is not evidence of a funded mortgage
financing, and not that an executed and binding construction contract had been obtained for the
construction of the Minimum Improvements, and;
WHEREAS, based upon the above information, the City Council concludes that the
Redevelopers have failed to satisfy either above described Conditions Precedent by
December 31, 2014 and the failure constitutes a default that entitles the City to certain remedies,
one of which is to terminate the Contract; and
NOW THEREFORE BE IT RESOLVED, that the Contract as executed December 3rd,
2013 as extended September 2"d, 2014 be and the same is hereby terminated, and that a Notice of
Termination be sent to the Redevelopers and their Counsel in the form attached to this
Resolution as Exhibit A.
Adopted this 6th day of January, 2015.
CITY OF STILLWATER
ATTEST:
Ted Kozlowski, Mayor
Diane F. Ward, Clerk
illiwater
Administration
NOTICE OF TERMINATION
FROM: The City of Stillwater
216 North Fourth Street
Stillwater, Minnesota 55082 ("City")
TO Stillwater Caves LLC Corey Buettner for
.7651 Old Central Ave. N.E. Stillwater Caves LLC
Fridley, MN 10901 Baltimore St. N.E.
Blaine, MN 55449
Notice is hereby given that City terminated the Contract for Redevelopment made
between Stillwater Caves LLC and the City of Stillwater dated December 3, 2013 (the Contract).
The Contract was terminated because of the failure of the Redeveloper to satisfy
Conditions Precedent by the extension date of December 31, 2014. The Conditions Precedent
are set forth in Section 3.1 of the Contract, as follows:
3.1.1 provide evidence of funded mortgage financing or owner's equity in at
least the amount sufficient to fund construction of the Minimum
Improvements.
3.1.2. submit to the City executed binding construction contracts . . . for the
construction of the Minimum Improvements.
This Notice is given pursuant to Section 9.2 of the Contract entitled "Remedies on
Default". The Contract is of no further effect from and after January 5, 2015.
BY ORDER OF THE CITY COUNCIL, this 5th day of January, 2015.
CITY OF STILLWATER
By l I A 411►
Larr�. Hansen, City Administrator
216 4th Street N, Stillwater, MN 55082 651-430-8800 Website: www.ci.stillwater.mn.us
"Exhibit A"