EDA 05/13/02OFFICIAL FILE COPY
CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
May 13, 2002
President W. Peter Enck
Commissioner Sharon Cassen
Commissioner Don Collier
Commissioner Mary Gwin-Lenth
Commissioner Pat LaVine Norby
2.
3.
4.
Call to Order
Roll Call
Approval of Regular Meeting Minutes of April 8, 2002
Resolution Authorizing the President and Executive Director to Enter into a
Redevelopment and Loan Agreement with Project for Pride in Living, Inc. for Funding of
7610 Bass Lake Road Redevelopment Project (Improvement Project No. 707)
Resolution Approving Financial Participation of the Hennepin County Housing and
Redevelopment Authority Affordable Housing Incentive Fund Program in the 7610 Bass
Lake Road Redevelopment Project (Improvement Project No. 707)
6. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
Approved EDA Minutes
Regular Meeting
April 8, 2002
City Hall
CALL TO ORDER
ROLLCALL
APPROVE MINUTES
DISCUSSION/
PLANBOOK PROJECT
IMP. PROJECT 623
Item 4
New Hope EDA
Page 1
President Enck called the meeting of the Economic Development Authority to order
at 9:16 p.m.
Present:
W. Peter Enck, President
Don Collier, Commissioner
Mary Gwin-Lenth, Commissioner
Sharon Cassen, Commissioner
Pat LaVine Norby, Commissioner
Motion was made by Commissioner Collier, seconded by Commissioner Gwin-
Lenth, to approve the Regular Meeting Minutes of February 11, 2002. All
present voted in favor. Motion carried.
President Enck introduced for discussion Item 4, Discussion Regarding and
Authorization to Participate in the Second Suburban Remodeling Planbook Project,
Split-Level and Split-Entry Styles at a cost of $6,250.
Mr. Ken Doresky, Community Development Specialist, stated in 1997 the EDA
authorized city participation in the initial suburban remodeling planbook project for
Cape Cods & Ramblers. The planbook was produced through a collaborative effort
of fifteen metropolitan area jurisdictions, including New Hope and architect Robert
Gerloff. The planbook initiative was undertaken as an additional tool for the
encouragement of residents to remodel and expand their homes. The planbook is
available at City Hall and several residents have utilized it in their remodeling
projects.
Due to the success of the previous planbook, staff from twelve jurisdictions,
including Brooklyn Park, Burnsville, Coon Rapids, Golden Valley, Maplewood,
Minnetonka, Mounds View, Plymouth, Roseville, Dakota County CDA,
Washington County HRA and New Hope have started to work together on a second
planbook focusing on split-level and split-entry houses. New Hope has an
abundance of this type of housing. Although several residents took advantage of the
previous planbook to remodel and expand cape cods and ramblers, staff feels that
this second planbook focusing on splits will be even more successful.
On behalf of the participating jurisdictions, the City of Brooklyn Park is
coordinating the project. The City of Brooklyn Park sent out a request for
qualifications for the project to several architecture firms and only Robert Gerloff
Residential Architects submitted a proposal. Robert Gerloff Residential Architects
is the same firm that completed the original planbook. The firm has submitted a bid
of $75,000 to complete the planbook.
Each jurisdiction participating in the project is requested to make a maximum
£manciai commitment of $6,250 (the total project cost divided evenly among the
twelve municipalities). The participating jurisdictions are still actively seeking
additional participation. If the number of jurisdictions increases, the contribution
will be reduced accordingly. Twelve jurisdictions contributed directly to the past
project at a cost of $5,000 each. As in the last planbook project, additional
April 8, 2002
MOTION
Item 4
ADJOURNMENT
contributions will be sought fi.om outside organizations to facilitate the printing.
If the Council authorizes staff to continue coordinating with the other jurisdictions
on this project and authorizes the requested funding, staff will return to the Council
with a Letter of Understanding between the City of Brooklyn Park and the City of
New Hope outlining the responsibilities of each jurisdiction.
Each jurisdiction is requested to contribute a maximum of $6,250. Currently,
members of the Planbook Committee are discussing participation with additional
jurisdictions. If additional jurisdictions become involved in the project, the City's
contribution will be adjusted accordingly.
The EDA discussed the success and popularity of the first planbook and expressed
support for the a second remodeling planbook. Mr. Doresky stated the multi-city
goal is to have the planbook published prior to next April's remodeling fair.
Motion was made by Commissioner Collier, seconded by Commissioner Gwin-
Lenth, authorizing staff to participate in the second suburban remodeling
planbook project for split-level and split-entry style homes at a cost of $6,250.
All present voted in favor. Motion carried.
Motion was made by Commissioner Collier, seconded by Commissioner Cassen, to
adjourn the meeting. All present voted in favor. Motion carried. The New Hope
EDA adjourned at 9:23 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA
Page 1
April 8, 2002
EDA
FOR ACTION
REQUEST
Originating Department Approved for Agenda Agenda Section
Community Development ~ 5-13-02 EDA
Item No.
By: Ken Doresky, Community
Development Specialist By:
RESOLUTION AUTHORIZING THE PRESIDENT AND EXECUTIVE DIRECTOR TO ENTER INTO A
REDEVELOPMENT AND LOAN AGREEMENT WITH PROJECT FOR PRIDE IN LIVING, INC. FOR
FUNDING OF 7610 BASS LAKE ROAD REDEVELOPMENT PROJECT (IMPROVEMENT PROJECT NO.
707)
ACTION REQUESTED
Staff recommends that the New Hope Economic Development Authority approve the attached resolution
prepared by the City Attorney authorizing the President and Executive Director to enter into a redevelopment
and loan agreement (also attached) with Project for Pride in Living, Inc. (PPL) for funding of 7610 Bass Lake
Road Redevelopment Project. Representatives from PPL and the Northwest Community Revitalization
Corporation (NCRC) will be in attendance to answer questions.
POLICY/PAST PRACTICE
City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within
the City. The City Council has been addressing the residential portion of this goal through the City's many
housing activities, including partnering with different agencies and organizations on housing projects.
In the past, the City has participated in similar collaborations, most recently with the Bass Lake Court
Townhomes project. As the Council is aware, projects of this size require a variety of funding partners and
usually require the expertise of an experienced development agency, such as PPL. This property has been
identified in the Comprehensive Plan for redevelopment or rehabilitation and it is also identified in the Livable
Communities Grant study area. The Livable Communities Task Force recommended proceeding with this
project. '
BACKGROUND
On February 25, 2002, the City Council approved a resolution prepared by the City Attorney authorizing the
acquisition of 7610 Bass Lake Road by eminent domain. Project for Pride in Living, Inc. and the owners had
executed a purchase agreement on the property and the owners requested a "friendly condemnation"
resolution to insure they will be able to utilize the full rights of Section 1033 of the Internal Revenue Code.
Those rights relate to an extended time limit of reinvestment for tax purposes. PPL has a signed purchase
agreement for the property, therefore it shouldn't be necessary for the City to take action to commence a
condemnation proceedin~ pursuant to that resolution.
MOTION BY _~_~...(_~/),, SECOND BY
TO: -
Request for Action
Page 2 5-13-02 -~
In 1999, the Northwest Community Revitalization Corporation, (NCRC) Community Housing Development
Corporation (CHDO) and PPL approached the City and inquired about multiple-family properties in need of
rehabilitation for a potential collaborative project. Staff had identified the 7610 Bass Lake Road property as a
high priority. The City's previous attempts to coordinate an apartment rehabilitation project with the owners
were unsuccessful.
On June 27, 2001, the EDA requested that staff investigate additional financing options for the project. Staff
presented those options at the September 17 Council work session. At the work session, the majority of the
Council voted to approve the rehabilitation project contingent on decreasing the City's contribution to $218,000
with the addition of a fourth MHOP unit and obtaining Livable Community Task Force input on the project.
Also, the Council elected to contribute $5,000 for playground equipment on the site. PPL ensured the Council
that an additional $5,000 could be raised to match the City's contribution for playground equipment. $78,000 of
the City's contribution would be from CDBG funds, the remaining $145,000 would be a no interest EDA loan to
the project with payment deferred for 30 years. The attached redevelopment agreement reflects the
September 17 decision. At the end of the 30 years, the City could collect payment on the loan or opt to
continue to defer payment as long as the property continued as affordable housing, thus insuring affordability
in perpetuity. This is the mechanism that was used on the Bass Lake Court Townhome project.
On October 2, staff presented this rehabilitation proposal to the Livable Communities Task Force. Staff
prepared an information packet for the Task Force, gave a short presentation on the project and requested
that the Task Force review the proposal and provide written input on the project at the following meeting. The
overwhelming input and direction from the Task Force was to proceed with the project.
The project at 7610 Bass Lake Road will include complete rehabilitation of the building's exterior and interior,
as well as, several site improvements, including:
Exterior: The building exterior will be completely renovated, including painting, the repair or
replacement of the soffits, fascia, gutters and downspouts, brick and mortar repair, and the repair or
replacement of the windows and exterior doors.
Interior: The interior work will include updating the existing units in their present configuration. New
cabinets, counters and appliances will be provided in the kitchens. The plumbing and electrical will be
updated. The existing boiler will be inspected and replaced, if necessary. The walls will be repaired and
painted and new carpet will be installed throughout.
Site Improvements: The landscaping will be improved, a playground added, the drive expanded and
resurfaced, the walkways repaired, and garages added for each unit.
The City's Building Official has reviewed the project specifications and garage plan and is supportive of the
project. Due to the addition of garages and other site improvements, the City Engineer worked collaboratively
with the Building Official and Project Manager to develop a drainage plan for the site.
The total cost of this development is approximately $1.32 million. The financing is proposed to be a
combination of a traditional bank mortgage, investments from the City of New Hope and Hennepin County
HOME and AHIF funds. Four affordable units will be paid for by the Metropolitan Housing Opportunities
Program (MHOP), which was created to increase the supply of rental housing outside of the central cities.
PPL currently has an on-site management office at the Bass Lake Court Townhomes located less than two
blocks from the subject site. Management of this site will be administered from the Bass Lake Court
Townhome office. All prospective tenants will be carefully screened: each must have a good rental history,
adequate income to afford the rent, and no criminal background.
This spring, the City along with PPL will host a neighborhood meeting to discuss all aspects of this
rehabilitation project.
Request for Action
Page 3 5-13-02
The redevelopment agreement is similar to that used for the Bass Lake Court Townhome development
project. Please see the attached development agreement for complete details. Among other items, the
development agreement includes the following provisions:
Redeveloper acknowledges and agrees the EDA shall not be required to fund any portion of the loan
provided by Article 5 herein until the Redeveloper has acquired all of the project area identified on
Schedule A, has secured all of the necessary commitments for project financing as determined by the
EDA and has obtained approval for all plans and construction plans from all governmental entities with
jurisdiction over same as also determined by the EDA.
· Redeveloper represents that it has a Purchase Agreement for the property identified on Schedule A.
If Redeveloper shall be unable through private negotiation to acquire the Project Area as identified on
Schedule A, the EDA agrees to initiate action to condemn or otherwise acquire the property through
private negotiation. After condemnation, the EDA shall convey the condemned properties to
Redeveloper subject to payment by Redeveloper as follows: the Redeveloper shall pay to the EDA all
costs and expenses of any condemnation proceedings.
Subject to acquisition of the Project Area, receipt of all necessary permits and approvals, and receipt of
Project Financing, Redeveloper shall promptly begin the Project and diligently prosecute the Project to
completion.
Promptly after completion and 100% occupancy of the Project in accordance with this Agreement,
Redeveloper will provide the EDA with a certificate in form satisfactory to the EDA executed by the
Redeveloper certifying that the Project has been completed in accordance with the Plans and the
Construction Plans, and is 100% occupied.
Redeveloper shall indemnify and hold harmless the EDA and the City and their respective officers,
employees and agents for any loss, damages and expenses (including attorneys' fees) in connection
with any claims or proceedings arising from damages or injuries received or sustained by any person
or property by reason of any actions or omissions of Redeveloper or its contractors, agents, officers or
employees or arising out of or relating to this Agreement or the transactions contemplated by this
Agreement, other than claims or proceedings arising from any negligent or unlawful acts or omissions
of the EDA, the City or their contractors, agents, officers or employees, and in connection with any
claims or proceedings related to payment of relocation benefits to any person as a result of any
redevelopment of the Project Area by the Redeveloper.
At such time as Redeveloper shall have acquired the land within the Project Area, secured the
necessary commitments for project financing, obtained the necessary approvals for the plans and
construction plans and provided the loan agreement, mortgage note and mortgage required by Section
5.3 herein, the EDA shall loan funds to the Redeveloper in the amount of $223,000. The Loan shall be
without interest and shall be advanced by the EDA based upon draw requests from the Redeveloper as
work progresses.
EDA acknowledges that it is anticipated that 4 of the units in the Project will be designated as units
having the benefit of financing from the Metropolitan Housing Opportunity Program ("MHOP").
Participation in the MHOP requires that at least 70%, of the MHOP units be first offered for occupancy
to qualified persons on the waiting list maintained by the MPHA and the remaining 30% of the MHOP
units be offered for occupancy to qualified persons on a waiting list maintained by the EDA. EDA
agrees to create and maintain such a waiting list in accordance with MHOP requirements. MHOP units
will also be subject to a program of payments in lieu of taxes ("PILOT") for a period of forty (40) years.
The PILOT program requires the real estate taxes attributable to MHOP units to be an amount no
Request for Action
Page 4 5-13-02
greater than 5%, of the approved tenant rents for the MHOP units. EDA agrees to abide by the MHOP
requirements and to assist the Redeveloper in obtaining approval of the PILOT program.
The Redeveloper shall also enter into a loan agreement, mortgage note and mortgage with the EDA to
secure the loan against the Redeveloper's interest in the Project. The mortgage shall be subject and
subordinate to the rights of the other providers of Project Financing. The loan agreement, mortgage
note and mortgage shall be in such form as shall be approved by the EDA and the Redeveloper.
The loan shall be due and payable on or before June 1, 2032. The EDA may forgive or defer payment
of a portion of the loan, if, in the sole discretion of the EDA, the project is still being used for Iow and
moderate income housing.
Representatives from PPL and the NCRC will be in attendance to answer questions.
The MHOP agreement will be upcoming and presented to the EDA at a meeting in the near future.
Staff recommends approval of this resolution.
FUNDING
With the approval of this agreement, the City's portion of funding for the project would be as follows:
· Total loan: $223,000 (30 year 0% interest deferred loan with a balloon payment due June 1, 2032).
Sources:
o $ 78,000 CDBG, and;
o $145,000 EDA
At the November 11, 2001, Council work session, the Council elected to fund the loan in this manner. Included
in the total amount is $5,000 to be used match funding for playground equipment. At that time, PPL ensured
the Council that $5,000 could be raised to match the City's contribution.
Staff has made it clear to PPL and the NCRC that the amount of funding for this project is firm and will not
increase.
ATTACHMENTS
· Resolution
· City Attorney Correspondence
· Budget
· Location Map
· Redevelopment Agreement
The following items are available upon request:
· Note
· Mortgage
· Loan Agreement
· Purchase Agreement
EDA RESOLUTION NO. 02-
RESOLUTION AUTHORIZING THE PRESIDENT
AND EXECUTIVE DIRECTOR TO ENTER INTO A
REDEVELOPMENT AND LOAN AGREEMENT WITH PROJECT FOR
PRIDE IN LIVING, INC. FOR FUNDING OF 7610
BASS LAKE ROAD REDEVELOPMENT PROJECT
(PROJECT 707)
BE IT RESOLVED BY the Economic Development Authority in and for the
City of New Hope as follows:
WHEREAS, the Economic Development Authority in and for the City of
New Hope (EDA) was created pursuant to state law now codified as Minn. Stat.
§§ 460.001 through 469.047 (the "Act") and was authorized to transact business
and exercise its powers by a resolution of the City Council of the City of New
Hope, Minnesota ("City"); and
WHEREAS, in furtherance of the objectives of the Act, the EDA has
undertaken a program for the clearance, development and/or redevelopment of
blighted, vacant and unused areas of the City and in this connection is engaged
in carrying out a redevelopment project as defined in Minn.Stat. §469.002, Subd.
12 (the "Redevelopment Project"); and
WHEREAS, as of the date of the proposed Redevelopment and Loan
Agreements attached hereto as Exhibits A and B there has been prepared and
approved by the EDA and the City Council pursuant to the Act a redevelopment
plan for the Redevelopment Project area which includes property more fully
described in Schedule A attached to the Development Agreement (the "Project
Area"); and
WHEREAS, Project for Pride in Living, Inc. (the "Redeveloper") has
proposed to redevelop the property included in the Project Area subject to the
Redevelopment Plan and the Redeveloper has requested that the EDA provide
financial aid and assistance to such project; and
WHEREAS, the Redeveloper intends to totally renovate and manage in
the Project Area an 11-unit apartment complex which will include 4 Metropolitan
Housing Opportunities Program (MHOP) units as described in Schedule B
attached to the Redevelopment Agreement; and
WHEREAS, the Redevelopment Plan has been reviewed, approved and
supported by the City's Livable Communities Task Force, and as a result, the
EDA believes that redevelopment of the Project Area pursuant to the
Redevelopment Plan is in the best interests of the City and benefits the health,
safety, and welfare of its residents, and complies with the applicable state and
local laws and requirements under which the Redevelopment Plan has been
undertaken and is being assisted.
NOW, THEREFORE, BE IT FURTHER RESOLVED by the Economic
Development Authority in and for the City of New Hope that:
That the President and Executive Director are hereby authorized to
enter into a Redevelopment Agreement and Loan Agreement
(Exhibits A and B attached) with Project for Pride in Living, Inc. to
assist in the financing of a redevelopment project to totally renovate
the 11-unit apartment complex within the Project Area identified on
Schedules A and B attached to the Redevelopment Agreement.
That the Executive Director and his staff are further authorized to
take all necessary steps required to implement the terms and
conditions of the Redevelopment Agreement, including acquisition
of land within the Project Area by Eminent Domain, according to the
terms of the Redevelopment Agreement.
That the EDA shall loan Project for Pride In Living, Inc. funds not to
exceed $223,000.00 for the purpose of completing the project in
accordance with the terms of the Redevelopment Agreement.
Dated this 13th day of May, 2002.
W. Peter Enck, President
Attest:
Daniel J. Donahue,
Executive Director
P:~Attorney\SAS\Documents\CNH99.11166-001- reso approving dev. agree.doc
2
DOUGLAS J. DEBNER-~
GORDON L. JENSEN~
GLEN A. NORTON
STEVEN A. SONDRALL
WILLIAM C. STRAIT:
STACY A. WOODS
OF COUNSEL
LORE~S Q. BRVNES7AD
~Real Property Law Specialist
Certified By The
~Qualified ADR Neutral
~Admilted in Iowa
JENSEN & SONDRALL, P.A.
/lttorneys At Law
8525 EDINBROOK CROSSING, STE. 201
BROOKLYN PARK, MINNESOTA 55443-1968
T£L£~'HONE (763) 424-8811 · TELEFAX (763) 493-5193
e-mail iaw~jensen-sondrall.com
May 6, 2002
Kirk McDonald
Community Development Director
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
7610 Bass Lake Road/PPL Development
Our File: 99.11166
Dear Kirk:
I have previously forwarded to you the EDA Resolution Authorizing The President And
Executive Director To Enter Into A Redevelopment And Loan Agreement With Project For
Pride In Living, Inc. For Funding Of 7610 Bass Lake Road Redevelopment Project. This
resolution should be considered at the May 13, 2002 EDA Meeting. The resolution approves
the $223,000.00 loan and directs the EDA to enter into the loan and redevelopment
agreement with PPL
I have also sent you the Redevelopment Agreement, Loan Agreement, Mortgage and Note.
We are handling this project in virtually the same manner as the Bass Lake Court project.
As a result, within the new project there will be four MHOP units. This will mean we will
receive very little in the way of real estate taxes connected with these units. However, the
use of the MHOP units does result in an additional funding source which will keep the
EDA's participation at a minimum.
Further, the project is being done on an interest-free basis, however, the note is payable in
full, at the option of the EDA, as of June 1, 2032. The EDA may defer payment of the loan
if the EDA, in its sole opinion, concludes the property is still being used for moderate
income housing.
Contact me if you have any questions on this matter.
Very truly yours,
Steven A. Sondrall, City Attorney,
City of New Hope
cc: Valerie Leone
P:~Attorn~y\SASXLetterskCNH99 1 1166-002-Kirk Ltr.wpd
BASS LAKE PROJECT
Development Proforma
USES Per Unit
Acquisition
1.00 11 Unit Apartment Building 525,000 47,727
Subtotal 525,000 47,727
Construction
2.00 Demo and Lead Mitigation 15,000 1,364
2.01 Rehab 11 Units 330,000 30,000
2.02 New Garages 115,000 10,455
2.03 Site Improvements 40,000 3,636
2.04 Playground Equipment 10,000 909
2.05 Contingency 45,000 4,091
Subtotal 555,000 50,455
Soft Costs
3.01 Architectural 35,000 3,182
3.02 I Environmental 3,000 273
3.03 1 Legal 10,000 909
3.04 Cost Certification 3,000 273
3.05 Survey and Plat 3,000 273
3.06 Utilities and Insurance 2,000 182
3.07 Taxes 10,000 909
3.08 Closing Costs 3,000 273
3.09 Interim Holding Costs 7,000 636
3.10 Relocation 35,000 3,182
3.11 Marketing and Lease Up 1,000 91
3.12 Construction Interest 5,000 455
3.13 Loan Origination Fee 1,300 118
3.14 Developer Fee 95,000 8,636
3.15 CHDO Fee/Processing Agent 15,000 1,364
3.16 Reserves - MHOP 15,000 1,364
Subtotal 243,300 22,118
4.00 Total Development Cost 1,323,300 120,300
SOURCES
5.00 1st Mortgage 126,300 11,482
5.01 New Hope EDA 223,000 20,273
5.02 Hennepin Co. HOME 350,000 31,818
5.03 Hennepin Co. AHIF 150,000 13,636
5.04 MHOP 469,000 42,636
5.05 Playground Donations 5,000 455
Total Sources 1,323,300 120,300
Prepared by: PPL, May 6, 2002
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REDEVELOPMENT AGREEMENT
THIS AGREEMENT is made as of the __ day of ,2002. by and between
the ECONOMIC DEVELOPMENT AUTHORITY in and for the City of New Hope, a
Minnesota municipal corporation (the "EDA") and PROJECT FOR PRIDE IN LWING, INC., a
Minnesota non-profit corporation ("Redeveloper").
WITNESSETH:
WHEREAS, the EDA was created pursuant to state law now codified as Minnesota
Statutes, Sections 469.001 through 469.047 (the "Act") and was authorized to transact business
and exercise its powers by a resolution of the City Council of the City of New Hope, Minnesota
("City"); and
WHEREAS, in furtherance of the objectives of the Act, the EDA has undertaken a
program for the clearance and redevelopment of blighted, vacant and unused areas of the City
and in this connection is engaged in carrying out a redevelopment project as defined in
Minnesota Statutes, Section 469.002, Subdivision 12 (the "Redevelopment Project"); and
WHEREAS, as of the date of this Agreement, there has been prepared and approved by
the EDA and the City Council pursuant to the Act a redevelopment plan for the Redevelopment
Project (the "Redevelopment Plan"); and
WHEREAS, the Redeveloper has proposed to redevelop a portion of the property
included in the area subject to the Redevelopment Plan (the "Project Area") and the Redeveloper
has requested that the EDA provide financial aid and assistance to such project; and
WHEREAS, the EDA believes that redevelopment of the Project Area pursuant to this
Agreement is in the best interests of the City and benefits the health, safety, morals and welfare
of its residents, and complies with the applicable state and local laws and requirements under
which the Redevelopment Plan has been undertaken and is being assisted.
NOW, THEREFORE, in consideration of the foregoing premises and the mutual
obligations set forth in this Agreement, the parties hereto hereby agree as follows:
ARTICLE 1
Definitions
Section 1.1. Definitions. In this Agreement, unless different meaning clearly appears
from the context:
"Act" means Minnesota Statutes, Sections 469.001 through 469.047.
"Agreement" means this Agreement, as the same may be from time to time
modified, amended or supplemented.
"Certificate of Completion" means a certificate in the form attached as Exhibit A, to be
provided to Redeveloper pursuant to this Agreement.
"City" means the City of New Hope, Minnesota, a Minnesota municipal corporation.
"Construction Plans" means detailed plans and specification for the renovation of the
Project in the form required to be submitted to the City prior to the issuance of a building permit.
"Event of Default" means as set forth in Section 7.1 hereof.
"EDA" means the New Hope Economic Development Authority, a public body corporate
and politic under the laws of the State of Minnesota.
"Loan" means the loan to be made by the EDA to the Redeveloper in accordance with
Article 5 hereof.
"Plans" means the concept plans, specifications, drawings and related documents for the
Project which shall include a site survey and plan of the Project Area; dimensioned site plan;
grading and drainage plan; utility plans; landscaping plans; colored building; elevations showing
the exterior building treatments; and property fence detail as the same may be submitted to and
approved by the EDA and the City.
"Project" means the acquisition of the land and existing improvements in the Project Area
and total renovation of the l 1-unit apartment complex to include 4 Metropolitan Housing
Opportunities Program (MHOP) units pursuant to the plans.
"Project Area" means the land legally described on Schedule A attached.
"Project Financing" means financing to he obtained by the Redeveloper in order to pay
the Costs of the Project including the Loan to be made hereunder and additional financing to be
obtained from a loan secured by a first mortgage from in the
approximate amount of $126,300.00; the Hennepin County I-IRA Affordable Housing Incentive
Fund ("AHI~") in the approximate amount of $150,000.00; the Minneapolis Public Housing
Authority ("MPHA") in the approximate amount of $$469,000.00 through the use of MHOP
funds; and Hennepin County Home funds in the approximate amount of $350,000.00.
"Redeveloper" means Project for Pride in Living, Inc., a Minnesota non-profit
corporation.
"Redevelopment Plan" means Redevelopment Plan of the EDA which relates to the
Redevelopment Property.
"Section" means a Section of this Agreement, unless used in reference to Minnesota
Statutes.
2
"State" means the State of Minnesota.
"Unavoidable Delay" means a failure or delay in a party's performance of its obligations
under this Agreement, or during any cure period specified in this Agreement which does not
entail the mere payment of money, not within the party's reasonable control, including but not
limited to acts of God, governmental agencies, the other party, strikes, labor disputes (except
disputes which could be resolved by using union labor), fire or other casualty, or lack of
materials.
ARTICLE 2
Representations and Warranties
Section 2.1. By EDA. EDA makes the following representations to Redeveloper:
(a) EDA is an economic development authority duly organized and existing under the
laws of Minnesota. Under the provisions of the Act, EDA has the power to enter into this
Agreement and carry out its obligations hereunder.
(b) The Redevelopment Project is a "redevelopment project" within the meaning of the
Act and was created, adopted and approved in accordance with the terms of the Act.
(c) The EDA has taken all actions necessary to make the Loan and provide the additional
assistance described in Articles 3 and 5 hereof and has funds available for such purposes.
Section 2.2. By Redeveloper. Redeveloper represents and warrants that:
(a) Redeveloper is a non profit corporation duly organized and validly existing and in
good standing under the laws of the State of Minnesota, has power to enter into this Agreement,
and by proper corporate action has duly authorized the execution, delivery and performance of
this Agreement.
(b) Redeveloper will, subject to acquisition of all the land in the Project Area; receipt of
all approvals required by the City; receipt of the proceeds of the Project Financing; and
Unavoidable Delays; commence construction of the Project within two years after the date
hereof and complete the Project within two years after the commencement date in accordance
with the terms of this Agreement.
(c) Redeveloper has received no notice or communication fi.om any local, state or federal
official that the activities of Redeveloper, the City or EDA with respect to the Redevelopment
Property may be or will be in violation of any environmental law or regulation. Redeveloper is
aware of no facts the existence of which would cause it to be in violation of any local, state or
federal environmental law, regulation or review procedure with respect to the Redevelopment
Property.
(d) Neither the execution or delivery of this Agreement, the consummation of the
transactions contemplated herein, nor the fulfillment of or compliance with the terms and
3
conditions of this Agreement is prevented by, limited by, conflicts with, or results in a breach of,
any restriction, agreement or instrument to which Redeveloper is now a party or by which it is
bound.
(e) The Redeveloper would not undertake the Project but tbr the financial assistance
being provided by the EDA hereunder.
(f) No member of the governing body of the (City or EDA or any other officer of the City
and EDA has any direct or indirect financial interest in the Redeveloper, the Redevelopment
Property or the Project.
ARTICLE 3
The Proiect
Section 3.1. Planninu.
(a) Redeveloper shall submit to the EDA and the City plans and specification for the
Project including without limitation the Plans and Construction Plans. The EDA shall have the
right to approve the Plans and Construction Plans, which approval shall not be unreasonable
withheld, and as to the Construction Plans, approval shall be given so long as the Construction
Plans conform to the Plans, the terms of this Agreement and applicable codes and ordinances.
The EDA acknowledges that the changes in the Plans may be required in connection with
obtaining Project Financing. The EDA will assist the Redeveloper in obtaining approval of the
Plans and the Construction Plans from the City and all other governmental authorities having
jurisdiction including, but not limited to, obtaining any conditional use permits and variances
required under City codes and ordinances. No material change in the Project which shall be
inconsistent with the Plans shall be made after the Plans have been approved and prior to the
issuance of the Certificate of Completion without the prior approval of the EDA and the City.
Redeveloper acknowledges and agrees the EDA shall not be required to fund any portion of the
loan provided by Article 5 herein until the Redeveloper has acquired all of the project area
identified on Schedule A, has secured all of the necessary commitments for project financing as
determined by the EDA and has obtained approval for all plans and construction plans from all
governmental entitles with jurisdiction over same as also determined by the EDA.
(b) No approval by the EDA shall relieve Redeveloper of the obligation to comply with
the terms of this Agreement, applicable federal, state and local laws, ordinances, rules and
regulations. No approval by that EDA shall constitute a waiver of an Event of Default. Any
disapproval of the Construction Plans shall set forth the reasons therefor, and shall be made
within 30 days after the date of their receipt by the EDA. IfEDA rejects the Plans, in whole or in
part, Redeveloper shall submit new or corrected Plans within 30 days after written notification to
Redeveloper of the rejection. The provisions of this Section relating to approval, rejection and
resubmission of corrected Plans shall continue to apply until the Plans have been approved by
EDA.
4
Section 3.2 Acquisition of the Proiect Area.
(a) Redeveloper represents that it has a Purchase Agreement for the property identified
on Schedule A.
(b) If Redeveloper shall be unable through private negotiation to acquire the Project
Area as identified on Schedule A, the EDA agrees to initiate action to condemn or otherwise
acquire the property through private negotiation. After condemnation the EDA shall convey the
condemned properties to Redeveloper subject to payment by Redeveloper as follows: the
Redeveloper shall pay to the EDA all costs and expenses of any condemnation proceedings
including, but not limited to, the amount of the final award payable to the owners of the property
condemned, any relocation costs, all fees charged by the commissioners appointed to determine
the final award of damages, all appraisal fees, all expert witness and other witness fees and
attorneys' fees. The cost of any acquisition of the project area by the EDA will be in addition to
the loan amount referred to in Section 5 and shall be payable to the EDA by Redeveloper within
thirty (30) days of any payment made by the EDA as an award for damages to the owner of the
property. Redeveloper acknowledges and agrees the EDA shall not be required to initiate any
condemnation action for acquisition of property until it is satisfied Redeveloper has
commitments for all project financing necessary to complete the Project.
Section 3.3 Construction of the Proiect and Certificate of Completion.
(a) Subject to acquisition of the Project Area, receipt of all necessary permits and
approvals, and receipt of Project Financing, Redeveloper shall promptly begin the Project and
diligently prosecute the Project to completion. Redeveloper shall make reports, in such detail
and at such times as may reasonably be requested by the EDA, as to the actual progress of
Redeveloper with respect to the Project. All work with respect to the portion of the Project
consisting of construction shall be in substantial conformity with the Construction Plans
approved by the EDA.
(b) Promptly after completion and 100% occupancy of the Project in accordance with this
Agreement, Redeveloper will provide the EDA with a certificate in form satisfactory to the EDA
executed by the Redeveloper certifying that the Project has been completed in accordance with
the Plans and the Construction Plans, and is 100% occupied. Upon receipt of such certificate and
verification of those facts, the EDA will furnish Redeveloper with an appropriate Certificate of
Completion as conclusive evidence of satisfaction of the agreements and covenants of this
Agreement with respect to the obligations of Redeveloper to complete the Project.
(c) If the EDA shall refuse or fail to provide the Certificate of Completion, the EDA
shall, within 15 days after the Redeveloper provides the certificate referenced in Section 3.3(b),
provide Redeveloper with a written statement specifying in what respects Redeveloper 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 Redeveloper to obtain the
Certificate of Completion.
5
(d) Not withstanding the issuance of the Certificate of Completion, Redeveloper shall
continue to allow representatives of the EDA to monitor and inspect the Project during normal
business hours and after at least one business day notice, or earlier in the case of emergency.
Redeveloper shall also attempt to cause the other providers of the Project Financing to allow the
EDA to participate in and receive the reports of such provider's monitoring and inspection
procedures.
ARTICLE 4
Defense of Claims
Section 4.1 Defense of Claims. Redeveloper shall indemnify and hold harmless the
EDA and the City and their respective officers, employees and agents for any loss, damages and
expenses (including attorneys' fees) in connection with any claims or proceedings arising from
damages or injuries received or sustained by any person or property by reason of any actions or
omissions of Redeveloper or its contractors, agents, officers or employees or arising out of or
relating to this Agreement or the transactions contemplated by this Agreement, other than claims
or proceedings ahsing from any negligent or unlawful acts or omissions of the EDA, the City or
their contractors, agents, officers or employees, and in connection with any claims or
proceedings related to payment of relocation benefits to any person as a result of any
redevelopment of the Project Area by the Redeveloper. Promptly after receipt by the EDA or
City of notice of the commencement of any action in respect of which indemnity may be sought
against Redeveloper under this Section 4.1, such person will notify the Redeveloper in writing,
of the commencement thereof, and, subject to the provisions hereinafter stated, the Redeveloper
shall assume the defense of such action (including the employment of counsel, who shall be
counsel reasonably satisfactory to the EDA or City, as the case may be, and the payment of
expenses) insofar as such action shall relate to any alleged liability in respect of which indemnity
may be sought against the Redeveloper. The EDA or the City shall have the right to employ
separate counsel in any such action and to participate in the defense thereof, but the fees and
expenses of such counsel shall not be at the expense of the Redeveloper unless the employment
of such counsel has been specifically authorized by the Redeveloper. The Redeveloper shall not
be liable to indemnify any person for any settlement of any such action effected without its
consent. The omission to notify the Redeveloper as herein provided will not relieve it from any
liability which it may have to any indemnified party pursuant hereto, otherwise than under this
section.
ARTICLE 5
The Loan
Section 5.1 ..The Loan. At such time as Redeveloper shall have acquired the land within
the Project Area, secured the necessary commitments for project financing, obtained the
necessary approvals for the plans and construction plans and provided the loan agreement,
mortgage note and mortgage required by Section 5.3 herein, the EDA shall loan funds to the
Redeveloper in the amount of $223,000.00. The Loan shall be without interest and shall be
advanced by the EDA based upon draw requests from the Redeveloper as work progresses. The
proceeds of the Loan shall be used by the Redeveloper to pay or reimburse Redeveloper for costs
related to the Project including without limitations land acquisition costs, architects and
engineers' fees and the cost of construction of the Project. EDA acknowledges and agrees that
the proceeds of the Loan may at the request of Redeveloper be advanced prior to the proceeds of
any other Project Financing. EDA shall receive copies from Redeveloper of all draw requests for
advances of Project Financing whether from the Loan or from other sources. Representatives of
the EDA shall be notified of all construction draw meetings and inspections and be entitled to
attend the same.
Section 5.2 MHOP. EDA acknowledges that it is anticipated that 4 of the units in the
Project will be designated as units having the benefit of financing from the Metropolitan Housing
Opportunity Program CMHOP"). Participation in the MHOP requires that at least 70%, of the
MHOP units be first offered for occupancy to qualified'persons on the waiting list maintained by
the MPHA and the remaining 30% of the MHOP units be offered for occupancy to qualified
persons on a waiting list maintained by the EDA. EDA agrees to create and maintain such a
waiting list in accordance with MHOP requirements. MHOP units will also be subject to a
program of payments in lieu of taxes ("PILOT") for a period of forty (40) years. The PILOT
program requires the real estate taxes attributable to MHOP units to be an amount no greater than
5%, of the approved tenant rents for the MHOP units. EDA agrees to abide by the MHOP
requirements and to assist the Redeveloper in obtaining approval of the PILOT program.
Section 5.3 Collateral. The Redeveloper shall also enter into a loan agreement,
mortgage note and mortgage with the EDA to secure the loan against the Redeveloper's interest
in the Project. The mortgage shall be subject and subordinate to the rights of the other providers
of Project Financing. The loan agreement, mortgage note and mortgage shall be in such form as
shall be approved by the EDA and the Redeveloper.
Section 5.4 Term and Satisfaction. The loan shall be due and payable on or before
June 1, 2032. The EDA may forgive or defer payment of a portion of the loan, if, in the sole
discretion of the EDA, the project is still being used for low and moderate income housing.
ARTICLE 6
Prohibition on Transfer or Assignment
Section 6.1 Transfer or Assignment of Agreement. Prior to the issuance of the
Certificate of Completion, this Agreement may not be transferred or assigned by the Redeveloper
without the prior written consent of the EDA, except to a limited liability company or partnership
in which Redeveloper is a member or partner.
ARTICLE 7
Events of Default
Section 7.1 Events of Default. The following shall be "Events of Default" under this
Agreement and the term "Event of Default" .shall mean, whenever it is used Agreement (unless
the context otherwise provides), any one or more of the following events which occurs and
continues for more than 30 days after notice by the EDA to Redeveloper of such default (and the
term "default" shall mean any event which would with the passage of time or giving of notice, or
both, be an "Event of Default" hereunder):
(a) Failure of Redeveloper to complete the Project as required hereunder.
(b) Failure of Redeveloper to observe and perform any other covenant, condition,
obligation or agreement on its part to be observed or performed hereunder.
(c) If Redeveloper shall admit in writing, its inability, to pay its debts generally as they
become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of
its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any
substantial part of the Redevelopment Property.
Section 7.2 Remedies on Default. Whenever any Event of Default referred to in
Section 7.1 occurs, the EDA may take any one or more of the following actions:
(a) Suspend its performance under this Agreement until it receives assurances from
Redeveloper deemed adequate by the EDA, that Redeveloper will cure its default and continue
its performance under this Agreement.
(b) Terminate all rights of Redeveloper under this Agreement.
(c) Withhold the Certificate of Completion.
(d) Take whatever action at law or in equity may appear necessary or desirable to the
EDA to enforce performance and observance of any obligation, agreement, or covenant of the
Redeveloper under this Agreement and/or to foreclose the Mortgage received by the EDA
subject to the rights of the other providers of the Project Financing.
(e) Enforce all rights and remedies provided by the loan agreement and mortgage subject
to all rights of the providers of project financing.
In the event any action is commenced against the Redeveloper by the EDA or the City upon the
occurrence of an Event of Default, the party commencing such action shall be entitled to recover
costs and expenses of such action, including reasonable attorneys' fees from the Redeveloper.
Section 7.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to the
EDA is intended to be exclusive of any other available remedy or remedies, but each and every
such remedy shall be cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to
exercise any right or power accruing upon any default shall impair any such right or power car
shall be construed to be a waiver thereof, but any such right and power may be exercised from
time to time and as often as may be deemed expedient. In order to entitle the EDA or
Redeveloper to exercise any remedy reserved to it, it shall not be necessary to give notice, other
than such notice as may be required under this Agreement.
Section 7.4 Waivers. All waivers by the EDA, shall be in writing. If any provision of
this Agreement is breached by either party and thereafter waived by the other party, such waiver
shall be limited to the particular breach so waived and shall not be deemed to waive any other
concurrent, previous or subsequent breach hereunder.
ARTICLE 8
Additional Provisions
Section 8.1 Conflict of Interests: EDA and City Representatives Not Individually
Liable. No member, official, employee, or consultant or employees of the consultants of the
ED!N or the City shall have any personal interest, direct or indirect, in this Agreement, nor shall
any such member, official, consultant or the consultant's employees or employee participate in
any decision relating to this Agreement which affects his or her personal interests or thc interests
of any corporation, partnership, or association in which he or she is directly or indirectly
interested. No member, official, consultant or the consultant's employees, or employee of thc
EDA or the City shall be personally liable to Redeveloper, or any successor in interest, in the
event of any default or breach by the EDA or the City or for any mount which may become duc
to Redeveloper or successor or on any obligations under the terms of this Agreement.
Section 8.2 Equal Employment Opportuni.ty. Redeveloper, for itself and its
successors and assigns, agrees that during the construction of the Project it will comply with any
applicable affirmative action and nondiscrimination laws or regulations.
Section 8.3 Restrictions on Use. Redeveloper agrees for itself, and its successors and
assigns, that Redeveloper, and such successors and assigns, shall not discriminate upon the basis
of race, color, creed, sex or national origin in the sale, lease, or rental or in the use or occupancy
of the Redevelopment Property or any improvements erected or to be erected thereon, or any part
thereof.
Section 8.4 Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of this Agreement are inserted for convenience of reference only and shall be
disregarded in construing or interpreting any of its provisions.
Section 8.5 Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand, or other communication under this Agreement by either party to
the other shall be sufficiently given or delivered if it is dispatched by registered or certified mail,
postage prepaid, return receipt requested, or delivered personally as follows:
(a) in the case of Redeveloper, addressed to or delivered personally to Redeveloper at:
Barbara McCormick, Vice President
Project For Pride In Living, Inc.
2516 Chicago Avenue South
Minneapolis, MN 55404
With copy to:
Chris Wilson
1925 Chicago Avenue South
Minneapolis, MN 55404
(b) in the case of the EDA, addressed or delivered personally to the EDA at:
Daniel J. Donahue, Executive Director
New Hope EDA
4401 Xylon Avenue North
New Hope, MN 55428
With copy to:
Steven A. Sondrall
Jensen & Sondrall, P.A.
Edinburgh Executive Office Plaza
8525 Edinbrook Crossing, Suite 201
Brooklyn Park, Minnesota 55443
or at such other address zenith respect to any such party as that party relay, from time to time,
designate in writing and forward to the other parties as provided in this Section.
Section 8.6 Counterparts. This Agreement is executed in any number of counterparts,
each of which shall constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
as of the date first above written.
THE ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF NEW HOPE
By:
W. Peter Enck
Its: President
By:
Daniel J. Donahue
Its: Executive Director
PROJECT FOR PRIDE IN LIVING, INC.
By:
Barbara McCormick
Its Vice President
10
SCHEDULE A
PROJECT AREA
The property in Hennepin County described as:
That part of the East 1/3 of Lot 35, Auditor's Subdivision No. 226, Hennepin
County, Minnesota, lying South of the North 1138.67 feet thereof, EXCEPTING
the West 30 feet and the South 33 feet thereof.
1!
SCHEDULE B
PROJECT DESCRIPTION
12
EXHIBIT A
CERTIFICATE OF COMPLETION
WHEREAS, the Property described on Schedule A attached hereto and made a part
hereof (the "Property") is subject to the provisions of a certain Redevelopment Agreement (the
"Agreement") dated 2002, by and between Project for Pride In Living,
Inc. (the "Developer") and the Economic Development Authority in and for the City of New
Hope, a Minnesota Municipal Corporation (the "EDA"); and
WHEREAS, the Developer has fully and duly performed all of the covenants and
conditions of the Developer under the Agreement with respect to the completion of the Project
(as defined in the Agreement);
NOW, THEREFORE, it is hereby certified that all requirements of the Developer under
the Agreement with respect to the completion of the Project have been completed and duly and
fully performed, and this instrument is to be conclusive evidence of the satisfactory termination
of the covenants and conditions of the Agreement as they relate to the completion of the Project.
All other covenants and conditions of the Agreement shall remain in effect and are not
terminated hereby.
Dated this day of ., 2002.
By:
By:
THE ECONOMIC DEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF NEW HOPE
W. Peter Enck
Its: President
Daniel J. Donahue
Its: Executive Director
13
STATE OF MINNESOTA )
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ~ day of ,
2002, by W. Peter Enck, President, and Daniel J. Donahue, Executive Director, of the Economic
Development Authority in and for the City of New Hope, Minnesota, a municipal corporation on
behalf of said municipal corporation.
(Notary Public Seal)
Notary Public
Drafted By:
JENSEN & SONDRALL, P.A.
8525 Edmbrook Crossing, Suite 201
Brooklyn Park, MN 55443
(763) 424-8811
P:~A. ttomey~SAS~Docum~ts\CNH99. I 1166.002-7610 BLR t~develop, agree.doc
14
EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
Community Development 5-13-02 EDA
By: Ken Doresky, Community '~ Item No.
Development Specialist By': ~' /
RESOLUTION APPROVING FINANCIAL PARTICIPATION OF THE HENNEPIN COUNTY HOUSING AND
REDEVELOPMENT AUTHORITY AFFORDABLE HOUSING INCENTIVE FUND PROGRAM IN THE 7610
BASS LAKE ROAD REDEVELOPMENT PROJECT (IMPROVEMENT PROJECT NO. 707)
ACTION REQUESTED
Staff recommends that the New Hope Economic Development Authority approve the attached resolution
approving financial participation of the Hennepin County Housing and Redevelopment Authority (HRA)
Affordable Housing Incentive Fund (AHIF) Program in the 7610 Bass Lake Road redevelopment project.
Hennepin County has approved a $150,000 AHIF loan to the project contingent upon EDA consent.
Representatives from PPL and the Northwest Community Revitalization Corporation (NCRC) will be in
attendance to answer questions.
POLICY/PAST PRACTICF
City goal #2 is to pursue the maintenance and redevelopment of commercial and residential properties within
the City. The City Council has been addressing the residential portion of this goal through the City's many
housing activities, including partnering with different agencies and organizations on housing projects.
In the past, the City has participated in similar collaborations, most recently with the Bass Lake Court
Townhomes project. As the Council is aware, projects of this size require a variety of funding partners and
usually require the expertise of an experienced development agency, such as PPL. Often times, other
jurisdictions approve funding, contingent upon the City's consent and project participation.
BACKGROUND
Please see the previous Request for Action for a detailed background discussion.
Per County Resolution No. 24-HCHRA-01R1, the Hennepin County HRA has approved the use of a $150,000
AHIF loan for the 7610 Bass Lake Road apartment redevelopment project. The AHIF loan is contingent upon
the EDA's consent to the County's participation in the project and overall project approval.
In 1999, the County Board created the AHIF program to leverage additional public, non-profit and private
funding to develop affordable housing. The fund provides gap financing for projects that create or preserve
affordable housing.
MOTION BY ~?~,~ SECOND BY
/
Request for Action Page 2
Representatives from PPL and the NCRC will be in attendance to answer questions.
5-13-02
Staff recommends approval of this resolution.
FUNDING
The total cost of this development is approximately $1.32 million. The financing is proposed to be a
combination of a traditional bank mortgage, investments from the City of New Hope and Hennepin County
HOME and AHIF funds. Four affordable units will be paid for by the Metropolitan Housing Opportunities
Program (MHOP), which was created to increase the supply of rental housing outside of the central cities.
The Hennepin County Housing and Redevelopment Authority has approved the use of a $150,000 AHIF loan
for this project. The attached resolution approves participation of the Hennepin County HRA in the project,
contingent on EDA approval.
The City's portion of funding for the project would be as follows:
· Total loan: $223,000 (30 year 0% interest deferred loan with a balloon payment due June 1, 2032).
Sources:
o $ 78,000 CDBG, and
o $145,000 EDA.
At the November 11, 2001 Council work session, the Council elected to fund the project in this manner.
Included in the total amount is $5,000 to be used match funding for playground equipment. At that time, PPL
ensured the Council that $5,000 could be raised to match the City's contribution.
Staff has made it clear to PPL and the NCRC that the amount of funding for this project is firm and will not
increase.
ATTACHMENTS
· Resolution
· Location Map
· PPL Correspondence (e-mail 4-23-02)
EDA RESOLUTION NO. 2002-
RESOLUTION APPROVING FINANCIAL PARTICIPATION OF
THE HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY
AFFORDABLE HOUSING INCENTIVE FUND PROGRAM IN THE
7610 BASS LAKE ROAD REDEVELOPMENT PROJECT
(IMPROVEMENT PROJECT NO. 707)
WHEREAS, the Hennepin County Housing and Redevelopment Authority in Resolution No.
24-HCHRA-01R1 has approved the use of a $150,000 Affordable Housing
Incentive Fund loan for the Bass Lake Apartments Project, located at 7610 Bass
Lake Road in the city of New Hope, contingent upon approval of the project by
the City of New Hope, and;
WHEREAS, the Bass Lake Apartments Project will preserve the supply of affordable housing
in the City of New Hope by preserving eleven (11) apartment units; and,
NOW, THEREFORE, BE IT RESOLVED, by the New Hope Economic Development Authority
that the Bass Lake Road Apartments Project and the participation of the
Hennepin County Housing and Redevelopment Authority in the project are
hereby approved.
Adopted by the City Council of the City of New Hope, Hennepin County, Minnesota, this 13th
day of May, 2002.
President
Attest:
Executive Director
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Page 1 of 1
KEN DORESKY - RE: Resolution required by Hennepin County HRA
From:
To:
Date:
Subject:
CC:
"Bill Flaig" <bill.flaig~ppl-mc.org>
"KEN DORESKY" <KDORESKY~ci.new-hope.nm.us>
4/23/02 11:43 AM
RE: Resolution required by Hennepm County HRA
"Chris Wilson" <chris.wilson~pl-mc.org>
Carol Stinar, Principal Planning Analyst at the Hennepin County HRA sent to Chris Wilson and I sample resolutions for the City of New Hope to use to
officially approve for use in the Bass Lake Apartments project the preliminary $150,000 award from the AHIF Program.
I entered the text of the sample resolution in the computer, and filled in the blanks with the pertinent project information. Enclosed are two versions of
the resolution - the first version is entitled "Resolution of the City of New Hope," and the second version is entitled "Resolution of the Housing and
Redevelopment Authority of the City of New Hope."
Please feel free to modify either or both of these as you see fit. Would you see to it that the Resolution is brought before the appropriate group of
officials at New Hope and properly filled out and signed?
Thanks, ]
Bill Flaig
PPL
file://C:\WINDOWS\TEMP\GW}00013.HTM 4/24/02