031317 EDA Meeting Packet EDA MEETING
City Hall, 4401 Xylon Avenue North
Monday,March 13, 2017
Commences upon adjournment of the City Council Meeting
Agenda
President Kathi Hemken
Commissioner John Elder
Commissioner Andy Hoffe
Commissioner Eric Lammle
Commissioner Jonathan London
1. Call to order—EDA Meeting of March 13, 2017
2. Roll call
3. Approval of Minutes:
• February 27, 2017
4. Resolution approving the Hennepin County Housing and Redevelopment
Authority's loan to the Boisclair Corporation as a 2016 Affordable Housing
Incentive Fund program loan recipient for property at 8007 Bass Lake Road
5. Resolution authorizing the acquisition of 3751 Louisiana Avenue North by
the city and Economic Development Authority through redemption as a
junior creditor(improvement project no. 993)
6. Adjournment
City of New Hope
4401 Xylon Avenue North
New Hope, Minnesota 55428
EDA Minutes February 27,2017
Regular Meeting City Hall
CALL TO ORDER President Hemken called the meeting of the Economic Development Authority to
order at 8:06 p.m.
ROLL CALL Present: Kathi Hemken,President
John Elder,Commissioner
Andy Hoffe, Commissioner
Eric Lammle,Commissioner
Jonathan London, Commissioner
Staff Present: Kirk McDonald, City Manager
Jeff Alger, Community Development Assistant
Aaron Chirpich,Community Development Specialist
Tim Fournier, Police Chief
Valerie Leone,City Clerk
Chris Long,City Engineer
Jeff Sargent,Director of Community Development
Stacy Woods,Assistant City Attorney
APPROVAL OF Motion was made by Commissioner Hoffe, seconded by Commissioner Elder, to
MINUTES approve the minutes of February 13, 2017. Voting in favor: Hemken, Hoffe,
Item 3 Lammle, London; and the following voted against the same: None; Abstained:
Elder;Absent:None.Motion carried.
PROJECT 964 President Hemken introduced for discussion EDA Item 4, Motion to approve an
Item 4 amendment to the Alatus Development Agreement in relation to terms concerning
the financing of a Variable Refrigerant Flow system for the building (project no.
964).
Mr. Jeff Sargent, director of community development, explained that at the
February 21 work session,staff advised Council of the interest by Alatus, LLC to
utilize a Variable Refrigerant Flow (VRF) system instead of the traditional
MagicPak HVAC system for the apartment building proposed for 8400 Bass Lake
Road. He stated the VRF system is 50% more efficient than the standard
"MagicPak" systems typically used in multi-family residential buildings, and
would allow the new project to achieve a zero carbon footprint, qualifying the
building to become LEED certified. Mr. Sargent stated Alatus has asked whether
the city would be amenable to covering half of the additional cost(up to$350,000).
He stated at the work session President Hemken inquired whether Alatus would
consider a loan rather than extending the length of the TIF district. He indicated
Alatus is receptive to a loan,which would require an amendment to the Purchase
and Development Agreement. He stated the terms of the loan have not been
defined.
EDA Meeting
Page 1 February 27,2017
Commissioner Lammle noted that historically the EDA's loans provided a slightly
lower interest rate than the rate offered through a bank.
Ms. Stacie Kvilvang, Ehlers, commented that the EDA has offered below market
rate loans in the past.
Mr. Bob Lux, president of Alatus, LLC, explained his intent to construct the best
apartment complex in the western suburbs. He noted utilizing a VRF system is
forward thinking and provides many advantages. He spoke of the development
challenges such as poor soils and expensive pilings,but noted the city is investing
in a project that will have long-term benefits.
Commissioner Lammle noted the VRF system will replace 182 MagicPak units
with one centralized unit. He commented regarding the condensation of
individual units that eventually causes rust and discoloration of the building's
exterior.He spoke in favor of the loan and stated the city will gain the reputation
of having a LEED-certified building in the community.
Commissioner Hoffe also supported the loan concept.
Commissioner London lauded Alatus' efforts to achieve a green building but
expressed concern regarding supporting a loan without knowing the details. He
commented the city will not reap any taxes during the 23-year term of the
increment financing district.
Commissioner Lammle pointed out the EDA is being asked whether it supports
the concept of a loan. He stated the terms will be brought back to the EDA at a
later date. He also pointed out the luxury apartment development will result in
the city gaining 182 households with high income levels.
President Hemken thanked Mr.Lux for attending the meeting. •
MOTION Motion was made by Council Member Lammle, seconded by Council Member
Item 4 Elder,to approve an amendment to the Alatus development agreement to assist
with financing of a variable refrigerant flow system for the building proposed
for 8400 Bass Lake Road(project no.964) subject to terms and conditions of the
loan being presented and approved at a future meeting. Voting in favor:
Hemken, Elder, Hoffe, Lammle; and the following voted against the same:
London;Abstained:None;Absent: None.Motion carried.
ADJOURNMENT Motion was made by Commissioner London, seconded by Commissioner Hoffe,
to adjourn the meeting.All present voted in favor.Motion carried.The New Hope
EDA adjourned at 8:25 p.m.
Respectfully submitted,
Valerie Leone,City Clerk
EDA Meeting
Page 2 February 27,2017
sinRequest for Action Agenda Section
EDA
March 13, 2017
r Approved by:Kirk McDonald, City Manager Item Number
4
Originating Department:Community Development
By:Jeff Sargent,Director
Agenda Title
Resolution approving the Hennepin County Housing and Redevelopment Authority's loan to the Boisclair
Corporation as a 2016 Affordable Housing Incentive Fund program loan recipient for property at 8007 Bass
Lake Road
Requested Action
Staff requests that the Economic Development Authority (EDA) approve a resolution approving the Boisclair
Corporation as a 2016 Affordable Housing Incentive Fund program loan recipient,for the use of up to$400,000
towards renovation efforts at the Park Acres development, located at 8007 Bass Lake Road.
Policy/Past Practice
It is a practice of the EDA to support efforts in renovating existing projects throughout the city.
Background
The Park Acres development located at 8007 Bass Lake Road, has been governed by a project-based Section 8
Housing Assistance Payment contract since its inception in 1978. The development was coupled with low
income housing tax credits(LIHTC) in 1999. The 15-year compliance period for the LIHTC's has expired, and
the owner is in the process of re-syndicating the LIHTC's for an additional 15 years. Park Acres is deemed a
Preservation priority and has physical needs that have gone unmet with its aging and rent restrictions. As a
Preservation priority, Park Acres received an allocation of tax exempt housing revenue bonds and HOME
funds from the Minnesota Housing Finance Agency. The bonds have the right of 4% LIHTCs, which requires
a minimum rehab of$5,000 per unit. In Park Acres case, the proposed renovations are projected to exceed that
minimum significantly.
The Scope of Work of the renovations includes work for the structural integrity of the building, the building
envelope, roof and site drainage, the sanitation systems, the mechanical systems, the electrical systems,
individual dwelling units and common spaces and the parking lot. A more detailed list has been attached for
review.
To meet all the goals for preservation and longevity, additional funding was required and Affordable Housing
Incentive Funds (AHIF) were awarded by Hennepin County in the amount of $400,000. These funds will be
used to support a portion of the attached rehab list.In order to certify the loans,Hennepin County requires the
local jurisdiction to approve a resolution approving the owner of the property as the loan recipient.
Attachments
• Resolution
• Memo from Hennepin County HRA (5/17/16)
• Scope of Work
I:\RFA\COMM DEV\Development\EDA-Approve Boisclair AHIF Loan 3-13-17.docx
NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO. 17-
RESOLUTION APPROVING THE HENNEPIN COUNTY HOUSING AND
REDEVELOPMENT AUTHORITY'S LOAN TO THE BOISCLAIR CORPORATION AS
A 2016 AFFORDABLE HOUSING INCENTIVE FUND PROGRAM LOAN RECIPIENT
FOR PROPERTY AT 8007 BASS LAKE ROAD
WHEREAS, the Hennepin County Housing and Redevelopment Authority (HCHRA) in
Resolution No. 16-HCHRA-0019 has approved the use of up to $400,000 Affordable Housing
Incentive Fund (AHIF) loan for the Park Acres project, contingent upon the Authority's consent
to the HCHRA's participation in the project; and
WHEREAS, the Park Acres project will preserve the supply of affordable housing in the
City of New Hope by preserving 41 units of general occupancy housing; and
WHEREAS, the loan from the HCHRA will complete the financing required for the
project to go forward.
NOW, THEREFORE, BE IT RESOLVED that the New Hope Economic Development
Authority approves participation of the Hennepin County Housing and Redevelopment Authority
in the project.
Adopted this 13th day of March, 2017
Kathi Hemken, President
ATTEST:
Kirk McDonald, Executive Director
H RA
HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY
701 Fourth Avenue South,Suite 400,Minneapolis,Minnesota 55415-1843 612-348-9260
May 17, 2016
Lori Boisclair
President
Boisclair Corporation
3033 Excelsior Boulevard, Suite 215
Minneapolis, MN 55416
Re: Amorce: Reprise, Brooklyn Park, Robbinsdale and New Hope
Dear Ms. Boisclair:
Congratulations! We are pleased to notify Boisclair Corporation that on May 3, 2016, the
Hennepin County Housing and Redevelopment Authority Board of Commissioners authorized a
preliminary funding award of$400,000 for the Amorce: Reprise project.
This funding award has been approved through the 2016 Affordable Housing Incentive Fund
(AHIF)Program pursuant to your application. A Notice of Funding Award and Loan
Commitment is enclosed providing the terms and conditions of the financial award.
We look forward to working with you and your organization on this important project and
commend your efforts in addressing the long-term, affordable housing needs of Hennepin County
residents.
Please direct any questions to staff at 612-348-2670.
Sincerely,
141.fti,p14'Lo--
Linda Higgins, Chair
Housing and Redevelopment Authority
Board of Commissioners
Enclosure
BOARD OF COMMISSIONERS
Linda Higgins Randy Johnson Peter McLaughlin Marion Greene Mike Opat Jan Callison Jeff Johnson
Chair Vice-Chair
Hennepin County Housing and Redevelopment Authority
2016 Affordable Housing Incentive Fund Progrrarrs
NOTICE OF FUNDING AWARD AND LOAN COi1�IilT BENT
Project: Arnorce: Reprise
Location: 5825 74th Avenue North and 5550 69th Avenue North, Brooklyn Park;
3756 Hubbard Avenue, Robbinsdale, and 8007 Bass Lake Road,
New Hope
Applicant/Recipient: Amorce, LLC (Boisclair Corporation)
Funding Award: $400,000
Date of Award: May 3, 2016
Contract Number: A165449
The Hennepin County Housing and Redevelopment Authority (Authority) hereby notifies
Amorce, LLC/Boisclair Corporation (Recipient)that it has approved a preliminary award in the form
of a loan of up to$400,000 from the 2016 Affordable Housing Incentive Fund (AHIF) Program for
the above referenced project proposal by Resolution No.16-HCHRA-0019 of the Authority's Board of
Commissioners adopted on May 3, 2016. Additional terms and conditions for the award closing are
set forth below.
1. Recipient will enter into a Loan Agreement, as appropriate, and will execute other
documents as required by the Authority. The specific terms and conditions of the award will
be detailed in the Loan Agreement. No repayment will be required prior to the maturity date,
if any, as long as the property meets the affordability requirements for the occupants of the
property and other terms of the Loan Agreement. Full repayment will be required at point of
sale if title transfers during the term of the award, or in the event of default of the terms of
the Loan Agreement or other award documents. Loan documents will include but not be
limited to a Loan Agreement, Declaration of Covenants and Restrictions, Promissory Note,
Mortgage, and a Notice for Request of Mortgage Foreclosure.
2. The property must meet local ordinances and codes, and meet federal and local housing
quality standards, as applicable, upon completion of work. Appropriate building and unit
access must be provided for persons with disabilities.
3. All parties to the Loan Agreement and the award documents must comply with the
implementing requirements as set forth in the 2016 AHIF Request for Proposals Guide and
application materials pertaining to this funding award, including but not limited to references
to fair housing and equal opportunity laws, real property acquisition, relocation assistance,
lead-based paint, contractor procurement, environmental review, administrative
requirements and other regulations as applicable to the AHIF Program.
4. AHIF units will be reserved for occupancy by very low-income households, defined as at or
below fifty percent(50%)of area median income or at or below sixty percent(60%)of area
median income for projects funded by the Low Income Housing Tax Credit (LIHTC)
Program, or at or below eighty percent(80%)of area median income for land trust projects
and other homeownership projects designated by the Authority and to the greatest extent
feasible priority will be given to households at or below thirty percent(30%) of area median
income as determined by the U.S. Department of Housing and Urban Development(HUD).
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5. AHIF rental units shall bear gross rents not to exceed a household paying thirty percent
(30%) of gross income for gross housing costs. Rent limits are based on an imputed
formula of 1.5 persons per bedroom in accordance with the Internal Revenue Service
regulations and include utilities paid by the tenant and other non-optional charges.
Permitted exceptions to the AHIF gross rent are units funded by the LIHTC, project-based
Section 8 programs or as agreed upon by the Authority. Recipient must comply with any
more specific income requirements in the award documents.
6. Prior to disbursement of the award, Recipient must provide Authority with copies of fully
executed purchase agreements for the property, and any other closing documents required
by Authority. No disbursements of award funds will be made without evidence of site
control.
7. The award shall be secured, if appropriate, by the real property to be acquired for the above
referenced project and/or such other security as Recipient and Authority agree to in a
Mortgage or other documents.
8. Recipient shall furnish,within a reasonable time prior to closing, proof of property insurance
as follows: fire and extended coverage insurance with vandalism and malicious mischief
endorsements containing a full replacement cost endorsement and an agreed amount rider
and in amounts of not less than the amount of the award, rent loss or business interruption
insurance covering risks insured against/under any fire and extended coverage policy for
one year's loss of income, public liability and property damage insurance in acceptable limits
of coverage,flood insurance, if the premises are in a flood plain, and/or such other forms of
insurance that Authority may reasonably require. All insurance shall be issued by a
company and with coverage acceptable to Authority, and endorsed with a standard
mortgagee's clause acceptable to Authority.
9. All real estate taxes currently due and payable shall be paid. All special assessments and
prior lien charges shall be paid in full at or prior to closing, whether or not payable in
installments. The premises may not be subject to any pending assessments.
10. The award shall be subject to satisfactory inspection of the premises by an authorized
representative of Authority. After the award closing, Recipient and occupant(s) of the
premises shall permit Authority's representative to make periodic inspections.
11. If required by Authority, Recipient shall furnish, within a reasonable time prior to the award
closing, a commitment for an ALTA mortgagee's extended coverage policy of title insurance
to be issued on the closing date of the award and including an escrow agreement and
assignment of mortgage. The commitment and final policy shall be in form and content
acceptable to Authority and issued by a company acceptable to Authority, insuring
marketable fee simple title to the premises vested in the name of Recipient or such other
party as approved by the Authority, agreeing to insure Recipient as the insured in the full
amount of the award and insuring that the mortgage is a valid lien against the premises,
subject only to such exceptions, restrictions,encumbrances,easements, and/or reservations
as may be acceptable to Authority and containing such endorsements as Authority may
reasonably require.
12. Recipient shall furnish, within a reasonable time prior to the award closing, satisfactory
evidence that all applicable zoning ordinances, building and use restrictions, code required
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building permits, and any requirements with respect to licenses, permits, and agreements
necessary for the lawful use and operation of the premises have been issued and complied
with. Recipient shall also furnish evidence that the premises have available all requisite
utility services. The premises shall be in compliance with all subdivision requirements and
constitute a separate tax parcel. Environmental standards must be met prior to award
closing, including any required testing for lead-based paint.
13. Prior to executing the Loan Agreement, Recipient shall furnish Authority such certificates
and other documents as we may reasonably require to show Recipient's organizational
authority or corporate authority, if Recipient is a corporation, or to show Recipient's
partnership authority, if Recipient is a partnership, with respect to the transactions
contemplated by this Commitment.
14. Recipient shall be responsible for any expenses it incurs in complying with the terms of the
award, including any costs for filing or recording award documents with the appropriate
officials and government offices.
15. Construction shall not commence prior to the closing of the award unless and until
specifically so authorized in writing by Authority, and on such terms and conditions as
Authority may deem to be appropriate.
16. This Commitment and the award shall be governed by the laws of the State of Minnesota. It
is a condition of Authority's funding that the award be legal under the governing law of the
State of Minnesota.
17. This Commitment is for the benefit of the Recipient only and may not be assigned, pledged,
or transferred without Authority's prior written consent.
18. This Commitment shall expire one year from the date of this Notice unless extended by the
Authority in writing.
19. This Commitment may be terminated by Authority if:
A. Recipient is in default of its undertaking hereunder and the terms and conditions herein.
B. Any material information or representation presented to Authority in connection with this
award is untrue.
C. Recipient is subject to any petition in bankruptcy, insolvency, or under receivership or
trusteeship or other similar condition.
D. There is any material change in or unrepaired damage to the premises.
E. There is a material adverse change in or suspension of business of the Recipient.
F. Any AHIF funds from the award as accepted by the Authority are not dispersed within
one hundred twenty (120) days of the date of the Loan Agreement.
G. Any local approvals required by Minnesota Statutes Section 383B.77 for the Authority's
participation in the project are not obtained.
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20. Prior to executing the Loan Agreement, Recipient must provide the following documents to
Authority:
A. Affirmative marketing plan.
B. For a corporation, copies of Articles of Incorporation and Bylaws; Certificate of Good
Standing from the Secretary of State; and certified resolution of board of directors is
authorizing loan and security interests.
C. For a limited partnership, Certificate of Limited Partnership and Certificate of Good
Standing from the Secretary of State.
• D. Certificate of Assumed Name from the Secretary of State, if applicable.
F. An opinion of its legal counsel addressed to and in form and content acceptable to the
Authority.
F. A final budget reflecting the AHIF funding award.
G. All other funding sources must be identified and preliminary commitments included with
the executed Loan Agreement. Firm commitments will be required prior to award
closing.
H. City Board Resolution supporting the AHIF funding of the project in the community
where the project resides.
21. Within one year of the date of this Notice, the Loan Agreement must be executed by the
Recipient and returned to the Deputy Executive Director, Hennepin County Housing and
Redevelopment Authority, Housing,Community Works&Transit,701 Fourth Avenue South,
Suite 400, Minneapolis, MN 55415-1843.
If you have any questions regarding the contents of this notice, please contact staff at 612-
348-2670.
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Park Acres
New Hope, MN
Scope of work outline/narrative
Al.Structural Integrity
1. Replace exterior corridor,stairs,and railings
2. Replace unit decks, porches and railings
3. Repair existing framing at exterior wall
A2. Building Envelope
4. Re-roof townhomes
5. Replace all windows and patio doors
6. Replace 2 metal stair doors to garage
7. Concrete patch and repair at 2 garage egress stairs
8. Add roof over uncovered sections of exterior corridor
9. Re-side buildings
A3. Roof,Site Drainage
10. Replace all gutters and downspouts
A4. Plumbing,Sanitation Systems
11. Replace rusted/corroded cast iron piping in garage
A5. Mechanical Systems
12. Replace hot water heaters at townhomes
13. Replace furnaces at townhomes
14. Replace boiler controller at apartments
15. Replace 2 unit heaters in garage
16. Replace 2 fresh air intakes at garage
17. Install comprehensive security camera system
A6. Electrical Systems
18. Replace Federal Pacific electrical panels
19. Provide new exterior lighting throughout site
A8. Dwelling Units and Common Areas
20. Paint all unit walls and ceilings
21. Replace unit flooring where necessary
22. Unit kitchens:
Replace all casework and countertops
Replace all sinks and sink faucets
Replace ranges and refrigerators where necessary
23. Unit bathrooms:
Replace all casework and countertop/sinks
Replace all sink faucets,toilets,tub valves,and shower heads
Replace doors and door hardware where necessary
Replace vanity light where necessary
24. Unit bedrooms:
Replace door and door hardware where necessary
Replace closet door and door hardware where necessary
25. Renovate office and add restroom
A9. Parking and Site
26. Asphalt repair/replacement
27. Grading modifications and retaining walls to correct storm water management issues
28. Sidewalk repair
29. New landscaping
30. Repair trash enclosures
k Request for Action Agenda Section
EDA
March 13, 2017
Approved by: Kirk McDonald,City Manager Item Number
Originating Department: Community Development 5
By:Aaron Chirpich, CD Specialist
Agenda Title
Resolution authorizing the acquisition of 3751 Louisiana Avenue North by the city and Economic
Development Authority through redemption as a junior creditor(improvement project No.993).
Requested Action
Staff requests the EDA authorize the acquisition of the property located at 3751 Louisiana Avenue North
from the City of New Hope.
Policy/Past Practice
In the past,the EDA has successfully acquired properties for redevelopment as part of the city's scattered site
housing program.
Background
The City of New Hope has two mortgages on this property and has recently foreclosed on one of the loans.
The Sheriff's certificate for the foreclosed loan was purchased by an investor. Staff has requested that the city
acquire this property by redeeming as a junior creditor using the second loan.Following acquisition by the
city,title to the property will be transferred to the EDA. The EDA will work to clear the lot of all
improvements so it can be sold for the development of a new single-family home. For full project details
please refer to RFA 8.5 in the development and planning section of this packet.
Funding
Funding for the project will come from EDA resources. The acquisition of this property will cost$12,300 plus
additional costs related to legal fees that are part of the transaction. Following acquisition, EDA funds will be
used for all demolition-related costs. The EDA will be reimbursed for all costs associated with this transaction
upon sale of the vacant lot.
Recommendation
Staff recommends that the EDA approve the attached resolution prepared by the City Attorney that will
authorize the EDA to take title to the property from the city.The resolution also authorizes EDA
expenditures in the amount of$12,300 plus any additional legal fees for acquisition of the property.
Attachments
• Resolution
I:\RFA\COMM DEV\Development\EDA-Approve 3751 Louisiana Acquisition 3-13-17.d ocx
CITY OF NEW HOPE
ECONOMIC DEVELOPMENT AUTHORITY
EDA RESOLUTION NO. 17-
RESOLUTION AUTHORIZING THE ACQUISITION OF 3751 LOUISIANA AVENUE NORTH
BY THE CITY AND ECONOMIC DEVELOPMENT AUTHORITY THROUGH REDEMPTION
AS A JUNIOR CREDITOR
(IMPROVEMENT PROJECT NO.993)
BE IT RESOLVED by the Economic Development Authority in and for the City of New Hope
("EDA")as follows:
WHEREAS, on September 22, 2014 the City Council adopted Resolution No.14-126 at the City
Council meeting authorizing City community development staff to actively pursue the acquisition of
distressed, functionally obsolete single family homes for potential purchase by the EDA as part of the
City's scattered site housing program;
WHEREAS,New Hope City staff have identified the opportunity to acquire certain real property
located at 3751 Louisiana Avenue North,New Hope,MN and legally described as: Lot 5,Block 3,
Wonderland 1St Addition,Hennepin County,Minnesota(the"Property");
WHEREAS, the previous owner of the Property is deceased and the Property was conveyed to
her children through a probate proceeding in 2004;
WHEREAS, on November 5, 2014, the City secured and locked the house located on the
Property as it had fallen into severe disrepair and deterioration and the Property has been vacant since that
date;
WHEREAS, the Property is currently unoccupied and is in the redemption period following a
mortgage foreclosure commenced by the City of New Hope, foreclosing its mortgage recorded on the
Property and Sheriff's Sale of the Property that occurred on February 2,2017;
WHEREAS,the Sheriff's Certificate of Sale was awarded to the high bidder,OIS,LLC;
WHEREAS, the City holds a junior mortgage on the Property that will allow the City to redeem
from OIS, LLC as a junior creditor and then convey the Property to the EDA;
WHEREAS, the City has commenced an action to reduce the redemption period to five (5)
weeks under Minnesota Statutes in light of its unoccupied status;
WHEREAS, City staff is seeking authority from the EDA to enable the City to redeem as a
junior creditor following the termination of the mortgagor's redemption period for the amount of$12,300
plus any statutory attorney's fees, costs and interest incurred by OIS, LLC, to enable the City to acquire
the Property and then convey it to the EDA;
WHEREAS,the City is required to record a Notice of Intention to Redeem and pay the required
amount to redeem the Sheriff's Certificate and generally follow Minnesota Statutes regarding a junior
creditor redemption following a mortgage foreclosure sale;
WHEREAS, the estimated amount to redeem as a junior creditor and obtain the Sheriff's
Certificate will be $12,300 plus any statutory attorney's fees,costs and expenses required to redeem;
WHEREAS, City staff believes that the best use of the Property is demolition in order to
maximize the tax base by making the lot available for the development of a new residential housing unit;
WHEREAS,the Property will be initially acquired using EDA funds as well as potential
reimbursement with CDBG grant funds for eligible expenses at a later date;
WHEREAS,it is in the best interest of the City and EDA to acquire the Property through a
creditor's redemption,in order to redevelop the Property in accordance with the City's scattered site
housing program and policy; and
WHEREAS, the City staff is hereby seeking approval from the EDA for the City to acquire the
Property through a junior creditor redemption.
NOW,THEREFORE,BE IT RESOLVED by the Economic Development Authority in and for
the City of New Hope as follows:
1. That the above recitals are incorporated herein by reference.
2. It is in the best interest of the EDA and the City to acquire the Property for
redevelopment in accordance with the City's scattered site housing program and policy.
3. That the acquisition of the Property by the City through a creditor's redemption following
mortgage foreclosure sale, for a sum of$12,300 plus all additional statutory attorney's
fees,costs and interest is approved.
4. The City shall use due diligence for correcting the Property's blighted condition and
conducting any necessary environmental cleanup of the Property to pursue this
redevelopment purpose and return the Property to the tax rolls for the benefit of all taxing
jurisdictions.
5. The Mayor and City Manager of the City and the President and Executive Director of the
EDA through the New Hope City staff are authorized and directed to sign all appropriate
documents, and to take whatever additional actions are necessary or desirable, to
complete the successful redemption of the Property by the City as a junior creditor
following the mortgage foreclosure sale.
Dated the day of March, 2017.
Kathi Hemken,President
Attest:
Kirk McDonald, Executive Director
P:\Attorney\SAS11 Client Files\2 City of New Hope199-I 1400 3751 Louisiana Ave.N\EDA Resolution Approving Acquisition of 3751 Louisiana
Ave N.docx