HomeMy WebLinkAboutItem 06.oDate: June 20, 2011
Proposed Action
Overview
Item No.
First Amendment to Contract for Private Development with
ImageTrend LLC
Staff recommends adoption of the following motion: Move to approve the First
Amendment to the Contract for Private Development with ImageTrend L.L.C.
In August of 2009, the City Council approved a Contract for Private Development with
ImageTrend (Contract) that involved the sale of city -owned property located adjacent to
ImageTrend which is located at 20855 Kensington Blvd. ImageTrend is a software
development company that started in Lakeville and had over 100 full -time salaried employees in
their 33,000 square foot building in 2009. ImageTrend is continuing to grow its business and
create jobs and is proposing to begin and complete construction on a 24,000 square foot
addition to their existing building this year.
One proposed amendment to the previously approved contract involves extending the
completion date for the first phase of their building expansion from November 30 to December
31 of this year. The second proposed amendment allows the City to subordinate its interests
to more than mortgage for the initial construction financing. ImageTrend is financing a portion
of the project with a bank mortgage and the balance with a SBA 504 loan.
The original Business Subsidy Agreement portion of the Contract for this project contained a job
creation goal of a minimum of 21 jobs at a minimum wage of $20 per hour within two years of
the date of closing on the sale of the property. ImageTrend has already met this job creation
requirement.
Primary Issues to Consider
• Does this proposed amendment change any of the significant terms of the original
contract? It does not as the Company is completing the first phase of their require
expansion in the same year as specified and the City is only subordinating to the same
amount of initial financing.
Supporting Information
• First Amendment to the Cont t for Private Development with ImageTrend LLC
avid L. Olson,
Community & Economic Development Director
Financial Impact: N/A Budgeted: N/A Source: N/A
WITNESSETH:
FIRST AMENDMENT TO CONTRACT
FOR PRIVATE DEVELOPMENT
IMAGETREND DEVELOPMENT, L.L.C.
THIS FIRST AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT,
made on or as of the day of June, 2011, by and between the CITY OF LAKEVILLE, a
Minnesota municipal corporation (the "City ") and IMAGETREND DEVELOPMENT, L.L.C.,
a Minnesota limited liability company (the "Developer ").
WHEREAS, the City and the Developer have entered into a Contract for Private
Development dated August 3, 2009 and recorded in the office of the Dakota County Registrar of
Titles on August 27, 2009 as Torrens Document No. T649971 (the "Contract "), regarding a sale to
the Developer of approximately 3.39 acres of real property (the "Property ") legally described on
the attached Exhibit "A ",
WHEREAS, Developer is requesting that the time frame for completion of Minimum
Improvements for the first Phase be extended to December 31, 2011 and that the language of the
Contract be clarified to reflect the parties' intent that the City subordinate its loan to all loans for
construction of the Minimum Improvements;
WHEREAS, the City is willing to amend the Contract in accordance with Developer's
request;
NOW, THEREFORE, in consideration of the premises, the Contract and the mutual
obligations of the parties hereto, the City and Developer hereby amend the Contract as follows:
1. Section 2.1(s) is hereby amended to read as follows:
(s) Upon written request by Developer, the City shall subordinate its rights in the
Property, Minimum Improvements, the Promissory Note (as hereinafter defined),
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the Mortgage (as hereinafter defined), and this Contract for Private Development
to the lien of all mortgages for the construction of the Minimum Improvements on
a form approved by the lender and the City Attorney.
2. Section 4.3 of the Contract is hereby amended to read as follows:
Section 4.3. Construction of Minimum Improvements. Developer shall have the
option to construct Phase A or B as the initial phase. The Developer shall substantially
complete construction of the first Phase of the Minimum Improvements, except for (i)
landscaping (ii) exterior matters such as final lift of asphalt, striping, etc. and (iii) minor
"punch list items," on or before December 31, 2011. The construction of the remaining
Phase (Phase A or Phase B) shall be substantially completed on or before November 30,
2013.
3. Except as specifically provided herein, the Contract remains unchanged and in full
force and effect. Capitalized terms not otherwise defined herein shall have the meanings ascribed to
them in the Contract.
IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its
name and behalf, and the Developer has caused this Agreement to be duly executed in its name and
behalf, on or as of the date first above written.
STATE OF MINNESOTA )
)ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this day of , 2011, by
Mark Bellows and by Charlene Friedges, respectively the Mayor and City Clerk of the City of
Lakeville, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the
authority granted by its City Council.
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CITY OF LAKEVILLE
By:
Mark Bellows, Mayor
By:
Charlene Friedges, City Clerk
Notary Public
STATE OF MINNESOTA
COUNTY OF
)
)ss.
)
The foregoing instrument was acknowledged before
2011, by and
respectively of ImageTrend
liability company, on behalf of the company.
DRAFTED BY:
CAMPBELL KNUTSON, P.A.
1380 Corporate Center Curve, Suite #317
Eagan, Minnesota 55121
Telephone: (651) 452 -5000
AMP
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IMAGETREND DEVELOPMENT, L.L.C.
By:
, President
And
Notary Public
3
me this day of
, the and
Development, L.L.C., a Minnesota limited
EXHIBIT "A"
LEGAL DESCRIPTION OF THE PROPERTY
Lots 1 and 4, Block 1, Fairfield Business Campus 2nd Addition, Dakota County, Minnesota.
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