091090 EDAOFFICIAL FILE COPY
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CITY oFNEWHOPE
4401 XYLO~A~NO~
HENNEPINOOUNTY, MINNESOTA55428
EDA P~gular Meeting #10
September 10, 1990
City Hal 1
2.
3.
4.
Se
President Edward J. Erickson
O~Lm,~ssioner Gary L'Herault
Ocm~issioner W. Peter Enck
O~m~issioner Gerald Otten
C~m~,~ssioner Marky Williamson
Call to Order
Roll Call
Approve Minutesof~27, 1990
Resolution Approving Development Agreement for Winnetka West Barrier-
Free Housing Complex and Authorizing the President and Executive
Director to Sign
Other Business
Adj ou~ =ent
CITY OF NEW HOPE
4401Xylon Avenue North
Hennepin County, Minnesota 55428
Approved EDA Minutes
Meeting #g
August 27, 1990
CALL TO ORDER
ROLL CALL
APPROVE NINUTES
OF JUNE 25, 1990
LICENSE AGREEMENT
PARKING LOT
IMP. PROJECT 453
Item 4
President Erickson called the meeting of the Economic
Development Authority to order at 7:30 p.m.
Present: Erickson, L'Herault, Otten, Enck, Williamson
Motion by Commissioner Otten, seconded by Commissioner
L'Herault to approve the EDA minutes of June 25, 1990.
All present voted in favor.
President Erickson introduced for discussion Item 4,
Motion to Approve License Agreement Between New Hope/U.S.
Swim Partnership and the EDA for New Hope Shopping Center
Parking Lot; Authorizing the Mayor and City Manager to
Sign.
Mr. Donahue stated this item relates to the license
agreement and addendum to the license agreement for
construction and maintenance of the City Center parking
lot located west of Applebee's. The agreement has been
executed by the owners of the shopping center and
Applebee's.
He explained that the Council previously passed a
resolution awarding the bid for the construction of the
parking lot subject to reaching agreeable terms for
parking lot maintenance. In the agreement, the tenant
agrees to reimburse the EDA for the entire cost of the
project and is responsible for all maintenance of the
parking surface, including sweeping, striping, snow
removal, resurfacing, and/or reconstruction. The
partnership maintains liability insurance for personal and
property damage. A motion is now needed to approve the
license agreement.
Commissioner Enck expressed concern regarding landscaping
and that it may be inappropriate for such property. Mr.
Donahue stated he will ask Dick Desplinter to review and
that he will report back to the EDA before proceeding with
any landscaping.
Commissioner Williamson inquired whether the City will
New Hope EDA
Page I
August 27, 1990
MOTION
Item 4
PARO'S PUB
Item 5
MOTION
Item 5
ADJOURNMENT
have any administrative or maintenance costs for upkeep of
the property. Mr. Donahue stated he does not foresee any
expenses to the City. City Attorney, Steve Sondrall,
stated the license agreement will run for ten years and
may be renewed for eight additional ten,year periods.
Motion made by Commissioner Enck, seconded by Commissioner
Williamson to approve the'license agreement between New
Hope/U.S. Swim Partnership and the EDA for New Hope
Shopping Center Parking Lot; Authorizing the Mayor and
City Manager to Sign. All present voted in favor.
President Erickson introduced for discussion Item 5,
Motion Approving Payment - Paro's Condemnation - Dismissal
of Total Take Eminent Domain Proceeding - $1,958.13.
Mr. Donahue stated the City has received a billing
statement for attorney's fees in connection with the
City's dismissal of the Paro's Pub condemhation action.
State law provides that a property owner is entitled to
payment of reasonable costs including attorney's fees if
a condemning authority dismisses or abandons an eminent
domain proceeding. The City did that in connection with
this property. The City Attorney has reviewed the
statement and has determined the fee to be reasonable and
recommends approval of the payment.
Motion made bY Commissioner Enck, seconded by Commissioner
Williamson to approve payment - Paro's Pub Condemnation -
Dismissal of Total Take Eminent Domain Proceeding -
$1,958.13. All present voted in favor.
Motion made by Commissioner Enck, seconded by Commissioner
Williamson to adjourn the EDA meeting as there was no
further business to come before the Council. All present
voted in favor. The New Hope EDA adjourned at 7:40 p.m.
Sincerely,
Valerie Leone
City Clerk
New Hope EDA
Page 2
August 27, 1990
REQUF T FOR ACTION
Orig~g Dep~£ment Approved ~ Agenda Agenda Se~ion
City Manager
By: Kirk McDonald, MA By: (// 4
RESOLUTION APPROVING DEVELOPMENT AGREEMENT FOR WINNETKA WEST BARRIER-FREE
HOUSING COMPLEX AND AUTHORIZING THE PRESIDENT AND EXECUTIVE DIRECTOR TO
SIGN
The City Attorney has prepared the enclosed Development Agreement for the
Winnetka West Barrier-Free Housing Complex. The agreement states that the
EDA and the New Hope Community Revitalization Corporation desire to assist
such development by providing Federal Community Development Block Grant
Funds to the New Hope Non-Profit Housing Corporation. The agreement
details the construction and operation of the project and the use of the
CDBG funds. The enclosed resolution approves the agreement and authorizes
the President and Executive Director of the EDA to execute the agreement.
Staff recommends approval of the resolution.
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Renew: Admini~r~n: F~ce:
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CORRII:K LAW O~I=ICE$. F~.A.
WILLIAM J. CORRICK
$?EVEN A. $ONORALI. P.A.
STIrVI~N A: $ONDRALl
MICHAEL. R. LAFLBUR
MARTIN 9I. MALIrCHA
WILLIAM C. STRAIT
CORRICK R, SONDRALL
LAWYERS
3~11 WEST BROAOWAY
ROBBINSDALE. ~'~INNESOTA 554.22
TELEPHONE (B 12) $33-~".'~4 I
FAX {$'12) $33-2~'4.3
LAVONNle E. KESKIr
SHARON O. DERBY
September 5, 1990
Mr. Kirk McDonald
Management Asst.
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
RE:
Development Agreement for Winnetka West Barrier-Free
Housing Complex
Our File No. 99.15026
Dear Kirk:
Please find enclosed a proposed Development Agreement for the
referenced project for discussion at the September 11, 1990
meeting with Westministe$. I trust you will provide copies to
all concerned parties before the meeting.
Also, we should get EDA approval of the agreement. Please place
the enclosed Resolution on the EDA agenda for consideration at
the September 9, 1990 meeting.
Very truly yours,
Steven A. Sondrall
slw
Enclosures
cc:
Daniel J. Donahue
Valerie Leone
EDA RESOLUTION NO. 90-
RESOLUTION APPROVING DEVELOPMENT AGREEMENT
FOR WINNETKA WEST BARRIER-FREE HOUSING COMPLEX
AND AUTHORIZING THE PRESIDENT AND EXECUTIVE DIRECTOR
TO SIGN
BE IT RESOLVED by the Economic Development Authority in and
for the City of New Hope as follows:
That the Development Agreement for Winnetka West
Barrier-Free Housing Complex is hereby approved and
accepted.
That staff may make whatever changes it deems
appropriate without further approval from the EDA.
That the President and Executive Director are hereby
authorized to execute the agreement on behalf of the
EDA.
Dated this
day of September, 1990.
Edward J. Erickson, President
Attest:
Daniel J. Donahue, Executive Director
DEVELOPMENT AGREEMENT FOR
WINNETKA WEST BARRIER-FREE HOUSING COMPLEX
THIS AGREEMENT, Made as of the day of ,
1990, between THE ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE
CITY OF NEW HOPE, a body politic and corporate under the laws of
the State of Minnesota, having its principal office at 4401 Xylon
Avenue North, New Hope, Minnesota 55428 (the "EDA"), THE NEW HOPE
COMMUNITY REVITALIZATION CORPORATION, a Minnesota non-profit
corporation (the "Corporation"), and NEW HOPE NON-PROFIT HOUSING
CORPORATION, a Minnesota non-profit corporation ("New Hope").
RECITALS:
A. New Hope intends to construct an apartment building on
the property (the "Property") in the City of New Hope (the
"City"), described on Exhibit A attached hereto and hereby made a
part hereof, to be leased to physically handicapped persons of
low or moderate income.
B. The EDA and the Corporation desire to assist such
development by providing Federal Community Development Block
Grant F~nds (the "CDBG Funds") to New Hope to assist with the
purchase of the Property, and New Hope desires to receive the
CDBG Funds, all on the terms and conditions herein set out.
NOW, THEREFORE, for and in consideration of the mutual'
covenants and agreements herein set out, the parties hereto
agree as follows:
Section 1. Definftions. The following words have the
following meanings as~ used herein:
"CDBG Funds" means the Federal Community Development Block
Grant Funds received by the City or the EDA from Hennep~ County,
Minnesota to assist the Project.
"City" means the City of New Hope.
/
"Completi6n Date" means September 30, 1991, or if HUD or any
other holder of a first mortgage lien on the Property requires
that it determine the Completion Date, then the date shall be
September 30, 1991, or the completion date determined by HUD or
such first mortgage holder, whichever is later.
"HUD" means the United States Department of Housing and
Urban Development.
1
"Low and Moderate Income Apartments" means apartments in the
Project leased or held for leasing to individuals who, on the
date of initial occupancy, are physically handicapped persons (or
if there be more than one occupant, at least one of which is then
a physically handicapped person), and who are Low or Moderate
Income Lessees.
"Low or Moderate Income Lessees" means an individual who or
family which is to be a lessee in the project and who or which
has an adjusted gross income which is equal to or less than the
precentage established from time to time by HUD (for low or
moderate income lessees) of the median family income established
from time to time by HUD for the Minneapolis-St. Paul Standard
Metropolitan Statistical Area.
"Plans" means the plans, specifications, drawings and
related documents for the Project approved in writing by the
City, and as the same may be changed by specific change approved
in writing by the City. ~
"Project" means the Property, and the apartment building
containing 12 one bedroom units and 14 two bedroom units,
together with appurtenant enclosed and exposed parking spaces,
landscaping, driveways and sidewalks, to be constructed on the
Propert¥.'pursuant to the Plans.
"Property' means the real estate in the City described on
Exhibit A attached hereto and. hereby made a part hereof.
"Substantial Completionw means when the Project shall have
been issued an FHA Final HUD Representative's Trip Report (form
HUD-5379) certifying that the Project is 100% complete.
Section 2. Construction and Operation of the Pro~ect.
2.1 New Hope agrees to construct the Project on the
Property in substantial compliance with the Plans.
2.2 New Hope agrees to fully and promptly comply with all
applicable (i) provisions of Section 202 of the United States
Housing Act of 3959, as amended, (ii) codes, ordinances,
statutes, rulesg regulations and Executive Orders (local, state
and federal) relating to the construction, use and maintenance of
the Project, including, without limitation, Title 24, Code of
Federal Regulations, Part 570, except as the same may have been
properly and effectively waived or varied by the City, or its
duly acting boards or commissions, and (iii) conditions imposed
in connection with any such waivers or variances, all of which
items referred to at (i), (ii) and (iii) above are hereby
incorporated herein and made a part hereof as if fully set forth
herein.
2
2.3 New Hope agrees to commence construction of the Project
as soon as possible, but, in any event, not later than September
30, 1990, and thereafter to diligently pursue the same to
completion, and, in any event, to substantially complete the same
by nQt later than the Completion Date.
2.4 New Hope agrees not to make any changes in the Plans
which require authorization by the City or action by the City
Council pursuant to the zoning ordinance of the City, without
first receiving, in each instance, the written approval of the
Executive Director of the EDA; provided, however, and the EDA
hereby agrees, that the EDA shall be deemed to have approved any
requested changes if the EDA should fail to respond to any such
request within thirty (30) days of New Hope's filing of a request
with the EDA.
2.5 New Hope agrees to provide a one hundred (100%) percent
payment and performance bond (which may also name other parties
in interest, such as HUD) to insure that construction of the
Project will be completed as-required and that all costs of
construction will be paid. The EDA agrees to accept security
given by New Hope or New Hope's general contractor to HUD,
provided such security is acceptable to HUD as to amount and
terms and conditions thereof. The security required by this
paragraph shall be, and is hereby determined to be, the only
guaranty or security necessary, in the public interest, in
connection with the Project.
2.6 The EDA agrees to provide a certificate of completion
on or within a reasonable time after Substantial Completion
relating solely to the obligations of New Hope to construct
the Project. Such cert'ificate shall be a conclusive
determination of satisfaction and termination of the agreements
and covenants in this Agreement with respect to the obligations
of New Hope to construct the Project. If the EDA shall refuse or
fail to provide any certificate in accordance with this ~
provision, the EPA shall, within thirty (30) days after Written
request by New Hope, provide New Hope with a written statement
showing in adequate detail in which respect New Hope has failed
to complete the~Project in accordance with this Agreement, or is
otherwise in default, and what measures or acts will be
necessary, in the opinion of the EDA, for New Hope to take or
perform in order to obtain such certificate. Each certificate
provided for in this provision shall be in such form as will
enable it to be recorded in the proper office for the giving of
constructive notice thereof relative to the Property.
2.7 New Hope agrees not to assign, transfer, convey or
pledge all or any part of its interest in this Agreement, the
Property or the Project (other than in connection with a first
mortgage insured or guaranteed by HUD or other financing approved
by HUD) to any person, corporation or partnership, without first
receiving the prior written consent of the EDA.
1.8 New-Hope shall fully comply with all applicable federal
and sUate laws', rules and regulations relating to discrimination
in the leasing of, or in the use or occupancy of, the Project,
and such laws, rules and regulations shall control over any
contrary provisions in this Agreement.
2.9 New Hope agrees that at all times during the term of
this Agreement there shall be in the Project Low and Moderate
Income Apartments totalling not less than (i) twenty-six (26) or
(ii) such lesser number, but not less than fourteen (14), as HUD
and the County of Hennepin shall have approved in writing. It is
agreed that the requirements of this paragraph shall not be met
by benefitting Moderate Income Lessees to the exclusion of Low
Income Lessees. The HRA and the Corporation shall be ~iven-a
copy of each and every such approval by HUD and the County of
Hennepin. ..
2.10 New Hope hereby agrees, for the purpose of determining
compliance with the requirements of paragraph 2.9 hereof, (i) to
maintain.at the Project or at an office in the Minneapolis-St.
Paul Standard Metropolitan Statistical Area, written notice of
the address of which shall be given to the EDA and to the
Corporation, all applications to lease, all leases and all
correspondence and other records relating to actions taken on
applications and leases, for a period of three (3) years from the
dates of the respective documents, and to allow all such records
to be reviewed and copi.ed by the EDA and the Corporation, and
their agents or represen~catives, at all reasonable times, and
(ii) to allow the EDA and the Corporation and their agents and
representatives, to enter upon and inspect the Project and to
speak with lessees thereof.
2.11 If, for any reason, New Hop~, at any time on ~r prior
to the twelfth (12th) anniversary of the Completion Date, fails
or refuses to have at least the minimum number of Low and
Moderate Income/~partments in the Project as required by
Paragraph 2.9 he~eof, and if such failure or refusal continues
for ninety (90) days o= longer from and after the date the EDA or
the Corporation gives notice to New Hope of such failure, then
New Hope shall pay to the Corporation, promptly upon demand made
by the EDA or the Corporation, all of the CDBG Funds paid to New
Hope pursuant hereto in the amount of
dollars, with interest thereon at eleven (11%) percent per annum
from and including the date of payment of such funds to New Hope,
until repaid. The Corporation shall pay to the EDA or City all
such funds received from New Hope promptly upon receipt by the
Corporation. If said funds, with interest, are not so paid to
the Corporation, the City, the EPA and the Corporation may
exercise any and all remedies then available to them at law and
in equity to recover such sum, with interest, and New Hope agrees
to pay all costs of collection, including, without limitation,
reasonable attorneyts fees, whether suit be brought or not,
incurred by the City, the EDA or the Corporation in recovering
said funds and interest thereon, including interest on such costs
of collection at the same Fate as is payable with respect to the
CDBG Funds, from the dates such costs are incurred until paid by
New Hope.
2.12 New Hope agrees to assume all obligations of the
Corporation under the terms of the Third Party Agreement Urban
Hennepin County Community Development Block Grant Program that
the Corporation entered into with the City. New Hope
acknowledges receiving a'copy of said Third Party Agreement and
it shall be made a part of the herein Development Agreement as if
it were fully set forth herein. New Hope further agrees to
indemnify and hold harmless the Corporation, EDA and City, their
respective officers, officials, directors, employees, agents or
representatives of any kind for any and all damages or claims
resulting from the failure of New Hope to comply with said Third
Party Agreement. This indemnification and hold harmless
provision shall include the payment of any and all costs
including reasonable attorneyts fees incurred by the indemnified
parties.
Section 3. CDBG Funds.
3.1 New Hope reprpsents that it intends to acquire fee
simple title to the Property and construct the Project as soon as
possible hereafter, and that, for such purpose, and in order to
make the Project financially feasible, it needs to receive from
the Corporation the sum of Dollars.
3.2 Based on such representation.the Corporation agrees to
pay to New Hope the sum of Dollars
from the CDBG Funds made available to the Corporation by the City
or the EDA. Such sum shall be paid to the Corporation, and to
New Hope, on the date on which New Hope is to acquire fee
ownership of the Property (provided notice of such date is given
to the Corporation at least five (5) days before such date). It
is understoo4 and agreed that such sum of
Dollars shall be made available to New Hope only from CDBG Funds
then available to the Corporation and useable for the Project.
The EDA and the Corporation represent that said CDBG Funds are now
available for the Project, and will be paid as herein provided;
however, it is agreed by New Hope that the City, the EDA and the
Corporation, and their respective officers, elected officers,
employees and representatives, shall have no liability or
obligation of any kind, for damages or otherwise, to New Hope or
any other person, if, for any reason said CDSG Funds are not
available to them, or for the Project, and New Hope hereby
waives, and r~eases the City, the EDA and the Corp0=ation and
their respective officers, elected officers, employees and
representatives from, any and all claims for damages or
otherwise, if, for any reason, said CDBG Funds are not available
to them, or for the Project. "
3.3 New Hope agrees and represents that the CDBG Funds
shall be used only for the Project and then only as allowed by
applicable state and federal statutes, rules, regulations and
Executive Orders, including, without limitation, Title 24, Code
of Federal Regulations, Part 570.
3.4 Anything in this Agreement to the contrary notwithstanding';
if, for any reason, the CDBG Funds have not been paid ~ver to New
Hope by 5~00 p.m. on September 30, 1990, then all obligations of
every kind of the City, the EDA and the Corporation under this
Agreement, to pay to New Hope any CDBG Funds, shall automatically
cease and terminate.
Section 4. Miscellaneous~.Running Covenants~ Binding. on
Successors and Assigns.
4.1 No director, officer', member, official or employee, of
the EDA, the Corporation or the City shall have any personal
interest, direct or indirect, in this Agreement, nor shall any
such member, elected or appointed official or employee
participate in any decision relating to this Agreement which
affects his or her pers6nal interests or the interests of any
corporation, partnership or association in which he or she is,
direc=Iy or indirectly, interested. No director, officer,
member, elected or appointed official, agent, employee or
representative of the EDA, the City o= the Corporation s~all be
personally liable under this Agreemen~ or any agreement or
document executed and/o= delivered pursuant to this Agreement,
for any reason or cause whatsoever, to any person or party
whomsoever, exc.el)~ in the case of willful misconduct.
4.2 Any titlee of the Sections of this Agreement are
inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions
or the intent of any party hereto. Use in this Agreement of
"herein", "hereto", "hereunder" and "hereof", or similar words,
shall mean and refer to this Agreement, and not just the Section
or paragraph in which such word appears, unless the contrary is
clearly stated.
4.3 Except as otherwise~expresSi~ provided in this
Agreement, a notice, demand, request or other communication
required or permitted under this Agreement to be given by any
party to the other shall be sufficiently given if in writing and,
if delivered, when personally delivered to an officer of the
party to whom it is addressed, or, if mailed, when deposited in
the Un, ted states mail and sent by registered or certified mail,
postage prepaid, return receipt requested, addressed as follows:
In the case of the EDA:
4401 Xylon Avenue North
New Hope, MN 55428
Attn: Executive Director
In the Case of the Corporation:
New Hope Community Revitalization Corp..
4401 Xylon Avenue North
New Hope, MN -55428
Attn: President
In the Case of New Hope:
c/o Westminister Corporation
328 West 6th Street
St. Paul, MN 55102
or at such other address (or to the attention of such other
person) with respect to any such party as that party may, from
time to time, designate by notice given to the other parties as
provided in this paragraph.
4.4 Wherever in 'this Agreement the consent or approval of
the EDA or the Corporation or New Hope is expressly or impliedly
required, or is requested, such consent or approval shalt not be
unreasonably withheld. Whenver such donsent or approval~is
withheld, and the person seeking such consent or approval claims
that such withholding is unreasonble, the only remedy of the
person seeking such consent or approval shall be specific
performance or ~andatory injunction, but, in no event, shall
money damages be claimed or paid. Consent or approval given by
any party for any specific act or thing shall not be deemed to be
a consent or approval to any subsequent act or thing of the same
or any other kind.
4.5 New Hope hereby agrees to hold the EDA, the Corporation
and the City and their respective officers, elected and appointed
officials, employees, agents and representatives, harmless from
7
and indemnified against any and all loss, cost, damage and
expenses, including, without limitation, reasonable attorneys'
fees and expert witness fees, and travel associated therewith,
and together with interest upon all such amounts to the extent
suffered or incurred by the EDA, the Corporation, the City or any
such other persons, due to claims or demands of any kind
whatsoever arising out of the design, construction, operation,
maintenance, repair, use marketing or leasing of all or any part
of the Project. New Hopeshall defend all such claims and
demands at its costs and with attorneys acceptable to the EDA and
the Corporation.
4.6 This Agreement is the entire agreement between the EDA,
the Corporation and New Hope relating to the Project, and there
are no other covenants, terms, provisions or understandings,
written or oral, between the EDA, the Corporation and New Hope
relating to the Project. This Agreement may be amended and
modified only by written agreement signed by the EDA, the
Corporation and New Hope with the same formality as th%s
Agreement, and no amendment or modification shall be binding on
the parties or have any effect unless so made.
4.7 This Agreement is not intended to, and does not, create
a partnership or a joint venture between the EDA, the Corporati0~
or New Hope, and no act or failure to act by any of said parties
shall impose or result in any partnership liability or obligation
on any of the other of said parties.
4.8 Ail exhibits and schedules referred'to herein or
attached hereto are hereby made a part hereof as if fully set
forth herein.
4.9 The EDA, the ~orporation and New Hope recognize that
although the covenants of this Agreement may burden New Hope's
fee title to the Project, nonetheless the assistance given to New
Hope in connection with construction of the Project con&titutes a
significant social and financial benefit to New Hope. T~refore,
New Hope specifically agrees that the burden upon New Hope and
its title to the Project is reasonable, acceptable and not
unconscionable ~r ag&inst public policy in any way, given the
other benef£ts ~o New Hope.
410 In amplification, and not in restriction, of the
provisions of the preceding paragraph, it is intended and agreed
that the City, the EDA and the Corporation, their respective
successors and assigns, shall be deemed beneficiaries of the
agreements and covenants provided in this Agreement, both for and
in their own right, and also for the purposes of protecting the
interest of the City and the other parties, public or private, in
whose favor or for whose benefit these agreements and covenants
have been provided without regard to whether the City, the EDA or
the Corporation has at any time been, remain or is an owner of
any land or interest to which, or in favor of which, such
agreements and covenants relate. Also, the City, the EDA or the
Corporation, or their respective successors and assigns,
shall have the right, in the event of any breach of any of the
agreements or 'covenants in this Agreement, to exercise all rights
and remedies, and to maintain any actions or suits at law or in
equity or other proper proceedings, to abate, prevent or enjoin
such breach, or to specifically enforce such covenants or
agreements, or to take whatever action is required to cure the
breach, including, without limitation, payments to others, or
performance on behalf of the New Hope, or to recover monetary
damages caused by such breach, and the breaching party shall pay
all costs of such actions or suits, including reasonable
attorneys' and witness fees, whether suit be brought or not. No
delay in enforcing the provisions of this Agreement shall impair,
damage or waive the right to enforce the same or to obtain relief
against or recover for the continuation or repetition of such
breach or any similar breach at any later time or times.
4.11 It is expressly intended and agreed ay the parties
hereto that each of the foregoing agreements and covenants in
this Agreement shall be construed to be, deemed, and are hereby
declared to be, covenants running with the Property, and that
they shall, in any event, and without regard to technical
classification or designation, legal or otherwise, be binding, to
the fullest extent permitted by law and equity, for the benefit
and in favor of, and enforceable by, the city., the EDA and the
Corporation and their respective successors and assigns, against
New Hope, its successors and assigns, and every successor in
interest to the Property or Project, or any part of either
thereof, and any interest in either thereof, and any party in
possession or occupancy of the Property or Project, or any part
of either thereof. Each and every transferee in any contract,
lease, conveyance or other instrument hereafter executed covering
or conveying all or any part of the Property or Project ~hall
conclusively be held to have acquLred such Lnterest sub]ect to
the agreements and covenants of this Agreement, regardless of
whether or not such agreements and covenants are set forth or
referred to in, fOr specifically agreed to by, such transferee.
4.12 The obligation to repay the CDBG Funds as set out in
paragraph 2.11 hereto shall be, and is, subordinate to the lien
of the first mortgage (the 'HUD Mortgage') to be placed by New
Hope on the Property in favor of HUD, and said obligation shall
cease and terminate (i) upon expiration of the period of
redemption, without redemption, after the sale of the Property
pursuant to foreclosure of the HUD Mortgage and (ii) upon
recording of a deed to HUD given in lieu of foreclosure of the
HUD Mortgage.
IN WITNESS WHEREOF, the 9arties hereto have caused this
Agreement to be duly executed as of the day and year first above
written.
ECONOMIC DEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF NEW HOPE
Edw. J. Erickson, Its President
Daniel J. Donahue, Its Executive
Director
NEW HOPE COMMUNITY REVITALIZATION
CORP. ~
By
Its President
By
Its Secretary
NEW HOPE NON-PROFIT HOUSING
CORPORATION
Its
Its
10
STATE OF MINNESOTA )
) ss
COUNTY OF HENNEPIN )
The foregoing was acknowledged before me this day of
·, 1990, by Edw. J. Erickson and Daniel J. Donahue,
the President and Executive Director, respectively, of The
Economic Development Authority in and for the City of New Hope, a
Minnesota municipal corporation, on behalf of said municipal
corporation.
Notary Public
STATE OF MINNESOTA )
) ss
COUNTY OF HENNEPIN )
The foregoing was acknowledged before me this day of
, 1990, by and
the President and Secretary, respectively, of the New Hope
Revitalization Corp., a Minnesota non-profit corporation, on.
behalf of said non-profit corporation.
Notary Public
STATE OF MINNESOTA )
) ss
COUNT HEN E IN )
The foregoing was acknowledged before me this day of
, 1990, by and ,
the and , respectively, of
the New Hope Non-Profit Housing Corporation, a Minnesota non-
profit corporation, on behalf of said non-profit corporation.
Notary Public
11