As indicated in a recent memorandum to the City of Wayzata, Presbyterian Homes is seeking significant alterations to the Wayzata Bay Center Redevelopment Agreement.
The proposed changes include adjustments to the number of blocks to be developed, an extended timeline for completion, and modifications to the Tax Increment Financing (TIF) District.
Here’s a breakdown of the key points:
Block Development: Presbyterian Homes is now advocating for the construction of only one block initially, deviating from the initial agreement that outlined three blocks.
Alternatively, they express a willingness to settle for two blocks dedicated to senior housing.
Timeline Extension: The proposed changes also seek to extend the completion timeline for Phase I to 2014 (originally three blocks, now one or two blocks of senior housing) and Phase II to 2016 for the remaining project.
This would provide more flexibility in the construction schedule.
TIF District Restart: Presbyterian Homes aims to restart the Tax Increment Financing (TIF) District in 2011 or 2012, resetting the clock for maximum collection over 26 years.
The proposal includes a provision for deferring TIF District receipts for four years, unless an earlier collection is requested by the Redeveloper.
Sale of Remaining Blocks: The development plan indicates that Presbyterian Homes intends to sell the remaining blocks, either directly or through a different developer such as Opus.
The City Council is reportedly considering contingency plans for the appearance of demolished blocks in case of a delay in finding a new developer.
Memo Summary: A memorandum from Jay R. Lindgren of Dorsey & Whitney outlines the terms of the proposed Second Amendment to the Wayzata Bay Center Redevelopment Agreement.
Some of the key points in the memo include demolition timing, acknowledgment of the City’s purchase of the DNR Parcel, a First Offer, First Refusal (FOFR) Agreement, adjustments to the Maximum Redeveloper Amount, and modifications to timelines for improvements completion.
Other Amendments: The proposed amendment includes changes to the timing and sequence of block construction, adjustments to the TIF District, acknowledgment of Gas Station Parcel purchase, satisfaction of affordable housing requirements, and park dedication requirements.
Deadline Extensions: Notably, the proposed amendment grants the Mayor the authority to postpone any deadline in the Agreement, including those introduced by the Amendment, for up to 90 days, provided the Redeveloper agrees in writing to each extension.
This proposed amendment is currently under consideration by the City Council, and stakeholders are encouraged to provide comments and feedback.
