Resolution 28-07 Opening Access
RESOLUTION NUMBER 28-07
APPROVING ACTIONS NECESSARY TO PROVIDE ACCESS TO THE FORMER PARK RIDGE PLAT AREA
WHEREAS, the Mountain Iron Economic Development Authority (the “Authority”) has entered into a Contract for Private Development, or development agreement, dated as of May 11, 2006 (the “Original Development Agreement”) with Iron Range Investment Group, LLP (“Iron Range”), pursuant to which Iron Range purchased the Development Property, as defined in the Original Development Agreement, and Iron Range agreed to construct the Minimum Improvements, as defined in the Original Development Agreement, on the Development Property; and
WHEREAS, the plat of the Development Property, as defined in the Original Development Agreement, was vacated by order of the Saint Louis County District Court on March 13, 2007 (the “Plat Vacation”); and
WHEREAS, as a result of the Plat Vacation, the Authority and Iron Range executed a First Amendment to Development Agreement, dated as of April 4, 2007, which contained an updated legal description of the Development Property due to the Plat Vacation (the “First Amendment”); and
WHEREAS, Iron Range has requested the Authority to acquire additional property from the State of Minnesota and various private parties (the “Additional Property”), which the Authority will use its best efforts to acquire, and if when acquired, to convey said property to the Developer pursuant to a Second Amendment to Development Agreement among the Authority, Iron Range and Northward Properties, LLC, doing business in Minnesota as Northward Properties of Virginia, LLC (the “Second Amendment”); and
WHEREAS, the Authority has informed the City that it is the intent of Iron Range to transfer and assign the Development Property, including the Additional Property (together, the “Property”) to Northward, and it is the intent of Northward to assign its rights in the Development Property to FAE Kennedy, LLC, a Minnesota limited liability company (“FAE”), in order to facilitate a 1031 exchange; and
WHEREAS, Iron Range and Northward remain obligated hereunder and under the Original Development Agreement as amended by the First Amendment and the Second Amendment (the Original Development Agreement as amended by the First Amendment and the Second Amendment is referred to herein as the “Development Agreement”); and
WHEREAS, it is necessary for the owner of the Property (whether Iron Range, Northward or FAE, which are referred to herein as the “Transferee”) to have legal access to the Property; and
WHEREAS, Transferee has requested that the City, if so required by the title insurance company insuring the title to the Property, take such action as it necessary to assure that Transferee has legal access to the Property on the north side of Highway 169 at the intersection with Emerald Avenue in the City (the “Access”); and
WHEREAS, the City desires to accommodate the request of Transferee; and
WHEREAS, the Access will promote the development and redevelopment objectives of the City and the Authority.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF MOUNTAIN IRON, MINNESOTA, that the Mayor and Administrator are authorized to take such actions as are necessary to assure that Transferee has the Access. The Administrator, upon the advice of counsel to the City and counsel to the Authority, is authorized to approve the final form and content of any legal documents relating to the Access (the “Documents”). The Mayor and the Administrator are authorized and directed in the name and on behalf of the City to execute the Documents and such other documents, instruments or certificates as are deemed necessary or desirable by counsel for the City and counsel for the Authority to complete the transaction.
DULY ADOPTED BY THE CITY COUNCIL THIS 4th DAY OF JUNE, 2007.
Mayor Gary Skalko