HomeMy WebLinkAbout1995-021 RESOLUTION NO. 95-21
WHEREAS, pursuant to the Minnesota Development District Act, Minnesota Statutes §469.124-
469.134, as amended (the "Act"), the City Council authorized the establishment of a Development
Program (the "Program") pursuant to the Act and has established Tax Increment Financing District No.
1 (the "District"), and a Tax Increment Financing Plan (the "Plan") also pursuant to the enabling statutes
of the State of Minnesota; and,
WHEREAS, the major objectives of the Council in establishing the Development District were
to remove, prevent, or reduce blight, blighting factors, causes of blight, or the spread of blight and
deterioration; eliminate unsafe structures and conditions; provide land for public parking, utilities and
facilities; remove incompatible land uses, eliminate obsolete or detrimental uses; and assemble land for
redevelopment; and, in furtherance of the Program and the Plan, the City acquired ownership of real
estate in the Downtown area of the City in both Blocks 18 and 17 that was formerly owned by Glacier
Park Company (the "Property") and had located on it a building known as the Lumberman's Exchange
Building and the Hooley's Supermarket; and that pursuant to the Program and the Plan, the City entered
into a Sale and Purchase Agreement on the 26th of April, 1994, (the "Purchase Agreement") for the sale
of certain portions of the property acquired by Glacier Park to the St. Croix Preservation Company, a
corporation organized and existing for the purpose of constructing a hotel, restaurant and conference
center on the property (the "project"); and,
WHEREAS, it also appears to the City Council that in view of the rehabilitation that is needed
on the site and the necessity to maintain the historical character of the site after construction, that the
project would not be feasible without the tax increment assistance that is described in the Redevelopment
Agreement and provided under the Act;
WHEREAS, the contingencies contained in the Purchase Agreement in favor of the City appear
to have been satisfied; and,
WHEREAS,a Redevelopment Contract has been prepared that will provide reasonable assurances
to the City that after the property is sold, a hotel will be constructed on the site; and,
WHEREAS, it will be necessary for the City to prepare and execute certain documents in
furtherance of the sale and to participate in the closing; and to have authority for the Mayor, Clerk and
other City officials to take actioni pursuant to the Redevelopment Contract and the Purchase Agreement;
and,
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
1. That the sale of the property, the Redevelopment Contract and the ultimate revitalization of
the property described in the Purchase Agreement is in furtherance of the Program and the Plan all
developed pursuant to the Act.
2. That the construction of a hotel in the Downtown area of the City that is envisioned by the
Redevelopment Contract would not be feasible without the assistance provided to the developers pursuant
to the Act, the Program and the Plan, the assistance being in the form of pay as you go tax increment
assistance, given as reimbursement for eligible expenses,
3. That the Redevelopment Contract, as presented on January 17, 1995, be and the same hereby
is approved.
4. That the Mayor, Clerk and appropriate City staff are hereby authorized to conduct the closing
and to execute such necessary documents as are in furtherance of this purpose.
Enacted by the City Council this 17th day of January, 1995.
Adirdr
1 /
ins Mayor
ATTEST:
.v[.U.c1C41dxJ
Morli eldon, City Clerk