HomeMy WebLinkAboutResolution No. 153-25 (EDA005-25) - EDA - Resolution - Development Assistance Rochester Tower LLC Rochester Civic Lot TIF #82
EDA RESOLUTION NO. ______
COUNCIL RESOLUTION NO. ______
Rochester Economic Development Authority
Rochester City Council
County of Olmsted, State of Minnesota
Approving and Authorizing the Execution of Development Assistance
Agreements (Civic Center North Apartments Project).
WHEREAS, the Rochester Economic Development Authority (the “EDA”) has
reviewed a proposal by Rochester Civic Lot Limited Partnership, a Minnesota limited
partnership (or an entity formed by or affiliated with Sherman Associates Development
LLC, the “Affordable Developer”) for the construction of an approximately 5-story, 76-unit
affordable residential rental apartment building with approximately 80 structured parking
stalls within the approximately 350-stall attached parking structure and related amenities
(the “Affordable Development”), located at 217 E Center Street, Rochester, MN 55904 in
the City of Rochester (the “City”);
WHEREAS, the EDA has reviewed a proposal by Rochester Tower LLC, a
Minnesota limited liability company (or an entity formed by or affiliated with Sherman
Associates Development LLC, the “Market Rate Developer” and, together with the
Affordable Developer, the “Developers”) for the construction of an approximately 15-story,
265-unit residential rental apartment building with approximately 270 structured parking
stalls within the approximately 350-stall attached parking structure and related amenities
(the “Market Rate Development” and, together with the Affordable Development, the
“Development”), located at 217 E Center Street, Rochester, MN 55904 in the City;
WHEREAS, the EDA has established Economic Development District No. 82 (the
“Development District”) and adopted an Economic Development Plan therefor (the
“Development Plan”) and, pursuant to the provisions of Minnesota Statutes, Section
469.174 through 469.1794, as amended, (the “TIF Act”), the EDA has created, within the
Development District, Redevelopment Tax Increment Financing District No. 82-1 (Civic
Center North Apartments Project) as a redevelopment district (the “TIF District”), and has
adopted a tax increment financing plan therefor (the “TIF Plan”) which provides for the
use of tax increment financing in connection with development to be constructed within
the TIF District and Development District; and
WHEREAS, the Council and the Board have, on December 9, 2024, conducted a
duly noticed public hearing regarding the sale of certain real property located near at 217
E Center Street in the City and currently identified by the following property identification
numbers: 74.36.33.026857, 74.35.44.018553, 74.35.44.018546, 74.35.44.018554,
74.35.44.018547, 74.36.33.026855, 74.35.44.018548, 74.36.33.026856 (the “Property”)
to Developers, at which all interested persons were given an opportunity to be heard;
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WHEREAS, the City currently owns the Property and prior to the conveyance
thereof to Developers, the Property will be replatted and conveyed to the EDA;
WHEREAS, there has been prepared and presented to the Board for its
consideration a certain (i) Purchase and Development Assistance Agreement, between
the EDA and the Affordable Developer, stating the Affordable Developer’s responsibilities
and the terms and conditions of the EDA’s assistance with financing certain costs of the
Affordable Development and conveyance of a portion of the Property to the Affordable
Developer (the “Affordable Agreement”); and (ii) Purchase and Development Assistance
Agreement, between the EDA and the Market Rate Developer, stating the Market Rate
Developer’s responsibilities and the terms and conditions of the EDA’s assistance with
financing certain costs of the Market Rate Development and conveyance of a portion of
the Property to the Market Rate Developer (the “Market Rate Agreement” and, together
with the Affordable Agreement, the “Agreements”).
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Rochester Economic Development Authority (the “Board”) and the Common Council of
the City of Rochester, Minnesota (the “Council”), as follows:
Section 1. Approval of Development Agreements.
1.01. The Board hereby approves the Agreements in substantially the forms
presented to the Board, together with any related documents necessary in connection
therewith, including but not limited to any documents, exhibits, certifications, assignments
or consents referenced in or attached to the Agreements including without limitation the
deeds and the TIF Notes as defined therein, (collectively, the “Development Documents”)
and hereby authorizes the President and Secretary to negotiate the final terms thereof
and, in their discretion and at such time, if any, as they may deem appropriate, to execute
the same on behalf of the EDA, and to carry out, on behalf of the EDA, the EDA’s
obligations thereunder; provided however that this authorization by the EDA shall expire
with respect to either Agreement which has not been executed by the applicable
Developer by July 11, 2025.
1.02. The City and the EDA have found and determined that the sale of the
Property to the Developers is advisable and the Council agrees, upon satisfaction of the
conditions under the Agreement for the conveyance of the Property to the Developers,
that the City will convey the Property, in accordance with the final approved plat thereof,
to the EDA and hereby authorizes the Mayor and City Clerk to execute, on behalf of the
City, the deeds necessary to convey the Property to the EDA, or execute the Agreements
as a party thereto and deeds necessary to convey the Property directly to the Developers
in accordance with the final approved plat thereof (collectively, the “City Documents”).
1.03. The approval hereby given to the Development Documents and the City
Documents includes approval of such additional details therein as may be necessary and
appropriate and such modifications thereof, deletions therefrom and additions thereto as
may be necessary and appropriate and approved by legal counsel to the EDA and by the
officers authorized herein to execute said documents prior to their execution; and said
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officers are hereby authorized to approve said changes on behalf of the EDA or the City,
as applicable. The execution of any instrument by the appropriate officers of the EDA or
the City, as applicable, herein authorized shall be conclusive evidence of the approval of
such document in accordance with the terms hereof. This Resolution shall not constitute
an offer and the Development Documents and the City Documents shall not be effective
until the date of execution thereof as provided herein.
1.04. In the event of absence or disability of the officers, any of the documents
authorized by this Resolution to be executed may be executed without further act or
authorization of the Board or the Council by any duly designated acting official, or by such
other officer or officers of the Board or the Council, as applicable, as, in the opinion of the
City Attorney, may act in their behalf. Upon execution and delivery of the Development
Documents, the officers and employees of the EDA and the City are hereby authorized
and directed to take or cause to be taken such actions as may be necessary on behalf of
the EDA and the City to implement the Development Documents and the City Documents,
including without limitation the issuance of the TIF Notes thereunder, when all conditions
precedent thereto have been satisfied.
1.05. The Board hereby determines that the execution and performance of the
Development Documents will help realize the public purposes of the Act.
PASSED AND ADOPTED BY THE BOARD OF COMMISSIONERS OF THE
th
ROCHESTER ECONOMIC DEVELOPMENT AUTHORITY, THIS 16 DAY OF JUNE,
2025.
_________________________________
PRESIDENT OF SAID AUTHORITY
SECRETARY OF SAID AUTHORITY
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PASSED AND ADOPTED BY THE COMMON COUNCIL OF THE CITY OF
ROCHESTER, MINNESOTA, THIS __________ DAY OF _______________, 2025.
___________________________________
PRESIDENT OF SAID COMMON COUNCIL
ATTEST: __________________________
CITY CLERK
APPROVED THIS _____ DAY OF ______________________, 2025.
___________________________________
MAYOR OF SAID CITY
(Seal of the City of
Rochester, Minnesota)
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