Loading...
EDA 05/27/03.... ' .... OFFICIAL FILE COPY CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North Tuesday, May 27, 2003 President W. Peter Enck Commissioner Sharon Cassen Commissioner Don Collier Commissioner Mary Gwin-Lenth Commissioner Steve Sommer 2. 3. 4. Call to Order Roll Call Approval of Regular Meeting Minutes of May 12, 2003 Motion Approving Sharing of Appraisal Cost with Bear Creek Capital for Potential West Winnetka Redevelopment Project Resolution Approving Second Amendment to Section 8 Housing Assistance Payments Program Contract No. C-99-66 for Administrative Services Between the Metropolitan Council and the City of New Hope and Authorizing President and Executive Director to Execute Agreement 6. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 EDA Minutes Regular Meeting May 12, 2003 City Hall CALL TO ORDER ROLL CALL APPROVE MINUTES 3625 FLAG AVENUE Item 4 EDA RESOLUTION 2003-03 Item 4 EDA Minutes Page 1 President Enck called the meeting of the Economic Development Authority to order at 7:56 p.m. Present: W. Peter Enck, President Sharon Cassen, Commissioner Don Collier, Commissioner Mary Gwin-Lenth, Commissioner Steve Sommer, Commissioner Motion was made by Commissioner Cassen, seconded by Commissioner Gwin- Lenth, to approve the Regular Meeting Minutes of April 28, 2003. All present voted in favor. Motion carried. President Enck introduced for discussion Item 4, Resolution Releasing Second Mortgage in Favor of the Housing and Redevelopment Authority in and for the City of New Hope on Property at 3625 Flag Avenue North. Mr. Kirk McDonald, Director of Community Development, stated in 1982 the city's Housing and Redevelopment Authority (I-IRA) purchased 3625 Flag Avenue North as rental property. The HRA owned several single-family homes and rented them to low and moderate income households. In the Iate 1980's the city discontinued the program and sold the homes. In February of 1988, the city sold 3625 Flag Avenue to Mark and Kathleen Pupeza. As part of the purchase price, the HRA held a second mortgage in the amount of $20, I00. The second mortgage note provided that the loan would be forgiven in its entirety if the buyers owned and occupied the property for a period of fifteen years from the date of closing. Mark and Kathleen Pupeza have satisfied the terms of the second mortgage note and have requested release of the second mortgage. Commissioner Cassen pointed out that current housing programs no longer forgive second mortgages. Commissioner Gwin-Lenth questioned the powers of the Housing and Redevelopment Authority (HRA) and the Economic Development Authority (EDA). She noted the original transaction for the 3625 Flag property was authorized by the HRA. Mr. McDonald explained that the City Council and the HRA were the original governing bodies and in 1989 state statutes allowed the creation of an Economic Development Authority (EDA) with broader authority than the HRA. City Attorney Sondrall noted the EDA assumed the HRA's responsibilities. Commissioner Collier introduced the following resolution and moved its adoption "RESOLUTION RELEASING SECOND MORTGAGE IN FAVOR OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE TC~TY O.F. NEy HOPE ON PROPERTY AT 3625 FLAG AVENUE NORTH". e motion Ior the adoption of the foregoing resolution was seconded by Commissioner Cassen, and upon vote being taken thereon, the following voted in May 12, 2003 IMP. PROJECT 707 Item 5 favor thereofi Enck, Cassen, Collier, Gwin-Lenth, Sommer; and the followin~ voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. President Enck introduced for discussion Item 5, Resolution Approving Bass Lake Road Apartments Housing Development Agreement, Regulatory and Operating Agreement and Property Management Agreement for the PPL/Bass Lake Apartments Project at 7610 Bass Lake Road and Authorizing the President and Executive Director to Sign Said Agreements (Improvement Project No. 707). Mr. Kirk McDonald, Director of Community Development, explained that the agreements are the fmal paperwork for this project. He noted the documents are required by HUD and the MPHA to permit funding of the project. The agreements are similar to the agreements processed for the Bass Lake Court Townhomes project in 1998. Commissioner Gwin-Lenth initiated discussion regarding requirements for an on- site manager for the property. Mr. Steve Sondrall, City Attorney, explained that the project involves 11 units and the city has not required an on-site property manager. He noted the Bass Lake Apartment Housing Development property will be overseen by the on-site manager at the Bass Lake Court Townhomes. Mr. McDonald indicated PPL is aware of the city's expectations and the properly has already formed a neighborhood watch program through the police department. Commissioner Collier commented that the last time the EDA discussed the 7610 Bass Lake Road property was during the transition of the on-site manager for Bass Lake Court Townhomes. Mr. McDonald interjected that there are now two caretakers and an on-site manager at Bass Lake Court Townhomes. Commissioner Sommer inquired regarding the reserves in the PPL contract as the city's redevelopment investment is large. He noted the total loan of $233,000 is interest free for 30 years with collection of mimmal property taxes. He inquired of assurance that the property would be properly maintained. Mr. Sondrall stated the Regulatory and Operating Agreement requires a reserve be established for an amount equal to three times the estimated annualized amount of the operating requirement. He noted the city is only involved with a small part of the loan transaction. The project will be closely monitored by the Minneapolis Public Housing Authority (MPHA) and the Department of Housing and Urban Development (HUD). He stated the Cooperation Agreement stipulates that the city will not assess real estate taxes against the four MHOP units within the development for the entire 40-year exemption period. In lieu of real estate taxes, the owner will pay the EDA a PILOT. This amount will be calculated as 5% of the "shelter rent" which is approximately 30% of the income of the occupants of the four MHOP tm_its. It was noted that the $223,000 loan includes $5,000 designated for playground equipment. EDA RESOLUTION 03-04 Item 5 EDA Minutes Page 2 Commissioner Collier introduced the following resolution and moved its adoption "RESOLUTION APPROVING BASS LAKE ROAD APARTMENTS HOUSING DEVELOPMENT AGREEMENT, REGULATORY AND OPERATING AGREEMENT AND PROPERTY MANAGEMENT AGREEMENT FOR THE PPL/BASS LAKE APARTMENTS PROJECT AT May 12, 2003 ADJOURNMENT 7610 BASS LAKE ROAD AND AUTHORIZING THE PRESIDENT AND EXECUTIVE DIRECTOR TO SIGN SAID AGREEMENTS (IMPROVEMENT PROJECT NO. 707)." The motion for thc adoption of the foregoing resolution was seconded by Commissioner Cassen, and upon vote being taken thereon, the following voted m favor thereof: Enck, Cassen, Collier, Gwm- Lenth, Sommer; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. Motion was made by Commissioner Collier, seconded by Commissioner Gwin- Lenth, to adjourn.the meeting. All present voted m favor. Motion came& The New Hope EDA adjourned at 8:10 p.m. Respectfully submitted, , ~ Valerie Leone City Clerk EDA Minutes Page 3 May 12, 2003 EDA Originating Department Approved for Agenda Agenda Section Community Development 5-27-03 EDA Item No. By: Kirk McDonald By: 4 MOTION APPROVING SHARING OF APPRAISAL COST WITH BEAR CREEK CAPITAL FOR POTENTIAL WEST WINNETKA REDEVELOPMENT PROJECT REQUESTED ACTION In follow up to the brief presentation made at the May 19 City Council work session by Bear Creek Capital regarding a potential redevelopment in the West Winnetka area of the Livable Communities area, the City Manager is recommending that the EDA approve a motion approving sharing of the appraisal costs, per the attached proposal. Details are yet to be worked out regarding the selection of the appraisal firm and would be coordinated with Bear Creek Capital in the future. The City Manager recommends that the City share in the "up front" costs with the understanding that the City's investment would be recuperated if the development moves forward. POLICY/PAST PRACTICE The EDA has shared in appraisal costs in the past on other potential developments. BACKGROUND Please refer to the attached information, which was included in the May 19 work session packet. The proposal states that Bear Creek Capital and the City agree to share the cost of direct third party costs required to establish the likely cost of acquisition of the properties to a maximum of $15,000. Staff is assuming the City's cost would not exceed one-half of that amount, $7,500. FUNDING The City's share for the cost of the appraisals would be funded out of EDA funds and reimbursed in the future if the project moves forward. .ATTACHMENTS · May 19 Work Session · Proposal from Bear Creek Capital MOTION 13Y _.~~~, SECOND BY ~ I \RFA\PLANNINO,\I ,v~hl~ r, .... , ~,.-, .,, ~ · ,~;; ............ ~ ..... mun ,Q-w wtka project bear creek.doc 16 2003 513.793.15(X3 513.7933820 fax 800.583.8956 BERRCREEK BEAR CREEK CAPITAL 745S741 Bear Creek Capital. LLC 9549 Montgome~' Road Cincinnati, Oluo 452,42 May iS, 2003 ~lx. FJm'k MeDo,,-id Director of Commurdty Development CiW of New Hope 4-401 Xylon Ave North New Hope, MN 55428 Re: Commercial Development, Whme~ Avenue West Dear Kirk: Thank you for the time you and the other members of the city staff have spent with the Bear Creek Capital team in the creation of the enclosed Concept Plan for the development of the commercial quadrant w~thm the Winnetka Avenue West area. Speaking for Bear Creek Capital and our retail client, we have confidence in the Plan's design as well as the long-term economic success of our proposed development. As described below, the Plan captures both the design parameters and the land use intent of the Livable Commnnities Stndy. Summary of Proposal Bear Creek Capital requests the City's assistance in the acquisition of approx/mntely 2.9~$ acres of property recp~ired to construct Phase One of the project. It is assumed the required property for Phase One will include: · ;92. acres currently occupied by the Sinclair Markettn& gas facility · .90 acres currently owned by. J. R. Baur ETAL at 5549 Winnetka Avenue · 1.12 acres of an unimproved portion of the Winnetka Elementary School property. It is the intention of Bear Creek Capital to Construct Ph-=e One of the property such that Phase Two can be added in the event the 2.36 a©re site currently owned by Garden Ad Agency, Inc., (commonly known as H~rdware Hanks} is able to be acquired at some future date. Discussions to date between Bear Creek Capital and the owners of the Hardware Hanks property have produced an asking price from the owner that would preclude the economic success of Phase Two. 2003 8:27~M BERRCREEK 7458741 Bear Creek Capita! has acqt~.ired ma_ny properties sim/far to the Sinclair Marketing facility and the adjoining resident/al properties. We feel confident that the eventual cost of these properties can be quantified prior to either the ciVy or Bear Creek Capital having incurred the economic risk should the city be asked to file the necessaa-y documents to beg/n the ([h2ick Take process for the acq~t/sit/on for the properties requixed to complete Phase One. Th/s is not true of Phase Two (i.e., Hm'dware Hanks parcel). It is ou2- hope that al._Jl properties can be acquired on a friendly basis. We beheve that once the Phase One property owners are convinced of t. he public purpose and .commtln/ty benefits inherent in the W/nnetka Avenue West .project as well as the city's veillingness to u~e it's Quick Take powers/f reqtzired, these owners w/Il be w/1H~E to enter into serious negotiations with the city or Bear Creek Cal~ital to facilil'~t~ a non-adversarial charll~e of ownership. t~h~iek T~i~ PTO~_=- " Bear Creek Capital proposes we and:'ifl~e city agree to share the cost of direct third party costs req~." ' d to cst~,l~t/ih the likely cost of acquisit/on of the propert/es to a max/na~tlr~ cost ~-'gi~/,OO0..This amottnt is believed sufficient to capttlrc the cost to: aal/cit appr .a~i ',~t~l ~oz' the. :l~tll}Pert/es as well as some lega/ expenses incurred by me city to begi~ the prepa~.~tion of thc Quick Take documentation. All P~es wotlld tide/r/have collective knowlecige of the eventual ~ cost of' acctla/rir~g the ~/ecessary l~h~e~ 'Oei.e 'l~.-..-.operties. Bear Creek Capit~l w/Il. also re~/t~.t..the city's assistance and gooit~vill in t_he assr-ned friendly acqttisition, of a portion of the Winnetka El~aentaxy School property from the local school board. - · - ~'.,-~.-.-,~. ~reek will indemnify ~e ci i . or t=ouEh ~e Qmck T~c process m Thc likely .costs appear to be eC~cally feas_ibte and; · azEeted ~n~14~- The property ownm-s ciha~.ve_ _no, t, en_'tffr~d 'into! land purchase aErccrncnts with the ~] ~na/or t~car Creek Capital. dTehvee~2~°__w~_.g_o_utlin, e, ~B~__~z Creek Capital', assumed time fral~es for the pre- ~u~u ~p~cl:s O! I-'ti&se One- tme Agzeement Phs~e: The city and Bear Creek 15 da~, endJ.~g 0apit~ ~ nego~ the Co~t ~h~g ~d Indemm~ J~ne 15, 2003 A~ent. 2 Ma~ IG ~003 8:278M BE~RCREEK 7458741 p.4 Quick Take Research Phase: The city wills commission necessary legal research and Lazad appraisals of the targeted properties. 60 ~40_Fs, ending August 15, 9.003 · Quick Take Process (if required) go days, ending November 1.5, 2003 Land Acquisition and Closing(s) 30 dmyu, ending Dcccmber 15, 2003 · Preliminary Project D~algn and City Review Sufficient to obtain preliminary plan approval 90 dray1, ending August 15, ::2003 · Final Site En~,izteerinf ~ud dlL~ehlteetaaral Deslrn 60 drys, ending October 15, 2003 · Final Per--~tti .n~. 60 days, ending December 15, 2003 PTo~e~t Design As stated abc~ve, the enclosed Conce~t Cite Plan i~ the product of several meetmgs w~th you and your st~ff. IXi. the meetings.,, your ~roup's input, part/c~larly with regard to thc inT~.rP/;etation Of ~he City'8 ~'t~Ltions express in ?,~ _L_t ~v~b'fltty._Co .s~u.~.t~. ~dy was rnos. t~'helpful. The fOlt..ow/ng design c,=menr~ speclncatty sites m r,~e Ltvablll~ Community 8tujiy have been incorporated: . · . Attractive atreetecatpe t~....~ent .aC Bass Lake Road, Winnetka Avenue and the proposed Phase ~...west/~.~. acce ..~ road. · Public Roadway access r~ future so~hern sites from Bass Lake Rd. · Pedestrian plaza incorporated at thc i/i~sec.t~n of.~jass Lake Road and Winnetk~ Avenue. ' "' - · Open spaces and internal pedestrian/bike trail- through the property. · Storm water pondtng has been incorporated and used as water featlras {to be v~ified with respect to the site's topography). · Accornrnodat/on df a bus stop at the intersection of Bass Lake Road and Winnetka Avenue. 3 na~ i~ ~003 8:~?AM BEARCREEK p.5 · The p~oposed development would ,,~,..ork ~ with mmv of the future developments m occur ~it. hin the wz. nn. et2(~_Avenue west area (i.e., the accommodation or r~moval of the exmtmg aost~,,~n J~ntor HI~, School or WinnetIm Elementur~ 8ohool). -'- .Mmrketft_bllit-~z of' *he DeveloDm~l -- - P~ss. O~ ~t ~mmns co~~d g r ' ~ ~u~ ~e ~c~ ~d ~ o~e f~ble, ~e c~t ~ au.~-~-- ~ ....... ~ Rese~ch Phase eastern s~ctu~ (a~~a._,.. ~ iA. ....... ~ent of ~e ~s ~ et~d u~ ~- +~--- .......... ..~ de~sned ~ acco~odate mco~ora~cd in~ thc ~i~ ~~s ~ ~ple p~n~ had been Kirk, thank you again t'~)r your help ~ :flare. AssUaging Zl%is p~pos~ is of ~terest ~o ~e ci~, we ~ begin ~~ately to p~~. ~ ~cess~ Coat SM~ng md lnde~W A~t ~t ~.~low ~e O~c~' T~e process to be~n. Simul~eo~ ~ ~_i~ process, we ~ con~ue to D~go~atc ~ ~c req~site prope~ O~s ~d con.ut ~ p~jcct's dc~. I look fo~ to o~ work session ~ ciW c0~ on M~F, ~F 1~. Pl~se ~1 ~you have ~y qucs~ons. Sincerely, cc: Timothy Baird 4 \ iI ? ? CONCEPT 1 CONCEPT 2 CONCEPT 3 STORE NUMBER: BASS t~J([ RO & WINNEIK~ NEW HOP[, MINNESOTA C~dCIHNATI. Gl40 45242 tEL 5t3 7~3 I~OO Ir~X 51.$ 745 g74t SITE CONCEPIUAL Plan EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development 5-27-03 EDA Item No. By: Kirk McDonald By: 5 RESOLUTION APPROVING SECOND AMENDMENT TO SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM CONTRACT NO. C-99-66 FOR ADMINISTRATIVE SERVICES BETWEEN THE METROPOLITAN COUNCIL AND THE CITY OF NEW HOPE AND AUTHORIZING PRESIDENT AND EXECUTIVE DIRECTOR TO EXECUTE AGREEMENT ,.,REQUESTED ACTION Staff recommends that the EDA approve the enclosed Resolution Approving Amendment to Section 8 Housing Assistance Payments Program Contract No. C-99-66 for Administrative Services Between the Metropolitan Council and the City of New Hope and Authorizing President and Executive Director to Execute Agreement. At the April 28, 2003, EDA meeting, staff discussed minor changes to the contract to reduce the number of out- of-city client contracts that were administered and the EDA approved a motion authorizing staff to give the Metropolitan Council a 90-day notice. This contract amendment formalizes the change to the contract )reviously approved by the EDA. POLICY/PAST PRACTICF In the past, the EDA has approved modifications to the Metro HRA Section 8 Administrative Services Contract depending on the workload and number of client cases being serviced. BACKGROUND At the April 28, 2003, EDA meeting, staff requested that the EDA approve a motion approving a minor revision to the Section 8 Administrative Services Contract between the Metropolitan Council and the City of New Hope. Staff indicated that when the number of client contracts was at a lower level in the mid 1990s, the New Hope Section 8 Coordinator took on the additional workload of administering contracts for other neighboring cities to bring in additional revenue for the New Hope program. Client contracts are now at a very high level and staff is requesting a minor revision in the Administrative Services Contract for New Hope to stop performing administrative services for the 128 contracts in Maple Grove and shift the workload back to Metro HRA staff. Staff indicated this revision will help to alleviate the workload of the Section 8 Coordinator and shift a portion of BY /q//X/~ BY To: n I:\RFA\PLANNING\Q&R Section 8 contract.doc Request for Action Page 2 5-27-03 the revenue back to Metro HRA, but still provide adequate financial resources to support the New Hope Section 8 Program. In April, staff indicated that Metro HRA requires a 90-day notification requirement for contract changes and that a formal contract amendment would be prepared for fDA consideration in the future if the motion were approved. The fDA did approve the reduction, staff gave Metro HRA the required 90-day notice, and Metro HRA has sent the attached contract second amendment to the City for execution to formalize this change. In the past, amendments or revisions to the Section 8 Administrative Services Contract with the Metropolitan Council have been formally considered and approved by the fDA. The City of New Hope has contracted with the Metropolitan Council for the past 20+ years to administer the Section 8 Housing Assistance Payments Program on a local level. The City employs a full-time Section 8 Housing Coordinator to administer the program and reimbursements from the Met Council/HUD cover all costs of the program and position. The contract is revised periodically when the reimbursement rate changes or when services and/or clients are added or deleted. In the past, New Hope has generally administered between 250-300 client contracts and the Metro HRA feels that this is the general range for the maximum number of clients per Section 8 Coordinator. 1996 Contract Amendment In 1994 and 1995, the number of Section 8 contracts administered for New Hope residents had decreased to approximately 240 contracts, due in part to newly adopted portability requirements. The City receives less revenue to cover the costs of the program/position with a reduced number of contracts and it has always been the position of the City that the program would be self-supportive or that the cost to administer the program would be covered by revenues received from Metro HRA. In 1994, when contract discussions were taking place, city staff indicated to Metro HRA representatives that the City would have an interest in taking on additional contracts from neighboring cities to increase program revenue. It was determined that additional outside contracts from neighboring cities would involve only administrative services, with Section 8 clients coming to the New Hope City Hall for income verifications, etc. The City would provide no inspection services for clients residing outside of New Hope, as that was determined to be Metro HRA's responsibility. The Metro HRA indicated that it would take the City's interest in assuming the administrative work for additional contracts into consideration. In December 1995, due to several staff position vacancies at the Metro HRA in St. Paul, Metro HRA contacted the City to see if the City was still interested in assuming administrative responsibility for additional contracts. City staff responded in the affirmative and at the January 22, 1996, New Hope fDA meeting, the fDA approved an amendment to the Metro HRA contract stating that the City of New Hope would administer the Section 8 contracts from the following cities: City Number of Contracts Edina 20 contracts Golden Valley 16 contracts Maple Grove 1--5 contracts TOTAL 51 contracts The additional revenue to the New Hope program with these additional contracts helped to ensure that the program was self-supporting. 1997 Contract Amendment In the spring of 1997, the City of Osseo lost the individual that administered the 23 Section 8 contracts for that city. Metro HRA contacted New Hope to inquire if the City was interested assuming additional contracts under the same terms and conditions as the 1996 contract amendment. The City responded that it could I:\RFA\PLANNING\Q&R Section 8 contract.doc ' 'Req~Je~;t for Action Page 3 5-27-03 take on the additional contracts at that time and on May 27, 1997, the EDA approved an amendment to the contract adding the services for the additional clients. 2001 Contract Amendment In November 2001, staff reported to the EDA that due to a recent marketing campaign by the Metro HRA on the Section 8 Program, the program was at 100% utilization. The New Hope Section 8 Coordinator was administering 420 contracts, as follows: City Number of Contracts Golden Valley 21 contracts Edina 41 contracts Maple Grove 67 contracts Osseo 21 contracts Subtotal :150 contracts New Hope 270 contracts Total 420 contracts At that time, the Metro HRA was in the process of re-assigning caseloads among its staff and was aware of the heavy caseload in New Hope. Staff recommended, and the EDA approved, returning the 41 Edina contracts back to the Metro HRA at that time. A 90-day notice was provided in November 2001, and the contracts were returned to Metro HRA as of March 1, 2002. Current Status of Contracts 2003 Due to the continued success of marketing the Section 8 Program by the Metro HRA, the metro-wide program continues at the 100% utilization level. The New Hope Section 8 Coordinator is now administering 463 clients, the highest number ever (and 43 more cases than before the Edina contracts were dropped). The contracts currently being administered break down as follows: City Golden Valley Maple Grove Osseo Subtotal Number of Contracts 33 contracts 128 contracts .... 14 contracts 175 contracts New Hope 288 contracts Total 463 contracts In staff's opinion, this is too many contracts for one staff person to effectively manage, and the Section 8 Coordinator has requested consideration of a reduction in the number of contracts. Preliminary discussions have been held with Metro HRA about shifting the 128 Maple Grove contracts back to Metro HRA and Metro HRA is agreeable to taking back the contracts. With this reduction, the total amount of contracts managed by New Hope would be 463 - 128 = 335. While the return of the Maple Grove contracts back to Metro HRA will decrease revenues for the program, revenues will still exceed expenses. Due to the increased utilization of the Section 8 Program on a metro-wide basis and the impact on the workload of the New Hope Section 8 Coordinator, staff requests that the EDA give favorable consideration to this request and approve a reduction in the administration of outside contracts. Staff requests authorization to give the Metro HRA a 90-day notice on the 128 Maple Grove contracts. Staff initiated the 90-day notification process by May 1 so the contracts could be returned by July 31. h\RFA\PLANNING\Q&R Section 8 contract.doc Request for Action Page 4 5-27-03 FUNDING The impact of this contract revision is explained above and would be minimal, as revenues would still exceed expenses in 2003 and future years. ATTACHMENTS · Resolution · Amendment to Contract No. C-99-66 · Correspondence from Metro HRA h\RFA\PLANNING\Q&R Section 8 contract.doc CITY OF NEW HOPE EDA RESOLUTION NO. 2003- RESOLUTION APPROVING SECOND AMENDMENT TO SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM CONTRACT NO. C-99-66 FOR ADMINISTRATIVE SERVICES BETWEEN THE METROPOLITAN COUNCIL AND THE CITY OF NEW HOPE AND AUTHORIZING PRESIDENT AND EXECUTIVE DIRECTOR TO EXECUTE AGREEMENT WHEREAS, Minnesota Statutes Section 473.195, subdivision 1 (1994 and Supp. 1995) authorizes the Metropolitan Council to plan and administer a federal Section 8 housing assistance payments program within the seven-county metropolitan area and to exercise the functions, rights, duties, privileges, immunities and limitations as are provided for municipal housing and redevelopment authorizes: and WHEREAS, WHEREAS, WHEREAS, the Metropolitan Council and the City of New Hope entered into Contract No. C-94-56 on September 1, 1994, under which the City agreed to perform specified Section 8 program administrative services within certain jurisdictions located in the metropolitan area; and subsequent to the approval of the initial contract, the City agreed to provide Section 8 program administrative services for the cities of Golden Valley, Edina, Maple Grove and Osseo through contract amendments and those amendments were incorporated into Contract No. C-99-66, which was approved by the EDA on January 10, 2000; and the City of New Hope amended the contract in January 2002 by deleting the services for the City of Edina and that change was incorporated by an Amendment to Contract No. C- 99-66; and WHEREAS, the City of New Hope desires to amend the contract as of July 31, 2003, by deleting the contracts for Maple Grove through a Second Amendment to Contract No. C-99-66. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of New Hope, Hennepin County, Minnesota, that the Second Amendment to the Section 8 Housing Assistance Payments Program Contract No. C-99-66 for Administrative Services between the Metropolitan Council and the City of New Hope EDA is hereby approved and the President and Executive Director are authorized to execute said Amendment. Adopted by the Economic Development Authority of the City of New Hope this 27th day of May, 2003. President Executive Director I:\RFA\PLANNING\Q&R Section 8 contract.doc Contract No. c-99-66 SECOND AMENDMENT TO SECTION 8 HOUSING ASSISTANCE PAYMENTS PROGRAM CONTRACT FOR ADMINISTRATIVE SERVICES THIS AGREEMENT is made and entered into by and between the Metropolitan Council ("Council") and the City of New Hope ("Contractor"). WHEREAS, on January 24, 2000 the Council and the Contractor entered into a contract identified as Council Contract No. C-99-66 under which the Contractor agreed to perform within the City of New Hope and other metropolitan-area jurisdictions certain Section 8 program administrative services in conjunction with the operation of the Council's Section 8 housing assistance program; and WHEREAS, in February 2002 the Council and the Contractor amended Contract No. C-99-66 to redefine the jurisdictions within which the Contractor would perform Section 8 administrative program services; and WHEREAS, by letter dated April 29, 2003 the Contractor informed the Council that the Contractor wishes to decrease the number of jurisdictions within which the Contractor will perform Section 8 administrative program services under Contract No. C-99-66; and WHEREAS, pursuant to Paragraph 6.03 of Contract No. C-99-66 the Council and the Contractor mutually agree to further amend Contract No. C-99-66 to redefine the jurisdictions within which the Contractor will perform Section 8 administrative program services. NOW THEREFORE, in consideration of the mutual promises and covenants contained in this agreement, the Council and the Contractor agree as follows: Amended Exhibit A, is amended by deleting the City of Maple Grove from the list of jurisdictions within which the Contractor will perform Section 8 administrative program services. Effective August 1, 2003, the Contractor will perform Section 8 administrative program services only within the cities of New Hope, Golden Valley and Osseo. Effective August 1, 2003, Amended Exhibit A of Contract No. C-99-66, as amended in February 2002, is replaced in its entirety by Second Amended Exhibit A, which is attached to this agreement and made a part of Contract No. C-99-66. Except for this amendment, the provisions of Contract No. C-99-66, as amended in February 2002, shall remain in force and effect without change. IN WITNESS WHEREOF, the Council and the Contractor have caused this agreement to be executed by their duly authorized representatives. This amendment is effective on the date of final execution by the Council. Page 1 of 3 Pages Approved as to form: Associate General Counsel METROPOLITAN COUNCIL By: Date: Regional Administrator CITY OF NEW HOPE By: Its: Date: By: Its: Date: Page 2 of 3 Pages SECOND AMENDED EXHIBIT A CITY OF NEW HOPE The Contractor shall perform the Section 8 program contract services within the City of New Hope, Minnesota and within the following jurisdictions located in Hennepin County, Minnesota: Golden Valley Osseo The Council will perform Section 8 inspection and reinspection services for dwelling units located within the cities of Golden Valley and Osseo. Page 3 of 3 Pages Metropolitan Council Building communities that work Metro HRA Housing and Redet~elopment Authoni~i May 17, 2003 Kirk McDonald, Director of Community Development City. of New Hope 4401 Xyion Avenue North New Hope, MN 55428 Re: Section 8 Housing Assistance Payments Program Contract for Administrative Services Dear Mr. McDonald: We have received your letter dated April 29, 2003, in which you request discontinuing administrative services for the Section 8 housing choice voucher contracts in the City of Maple Grove as of July 31, 2003. Our legal department has prepared the enclosed contract amendment to solidify this transfer of responsibility from your office to Metro HRA. Please review and sign both copies and return in the enclosed self-addressed, postage-paid envelope. Upon receipt, the Metropolitan Council's Regional Administrator will execute both copies and one copy will be returned for your records. If you have any questions, please feel free to call me at 651-602-1600. Sincerely, ~' ; ! / Kathy Kline Program Operations Supervisor Metro HRA Enclosures Cc: Dan Donahue, City Manager Steve Sondrall, City Attorney Marlene Isaacson, Metro HRA community representative Beth Reetz, Metro HRA Manager www.metrocouncil.org 230 East Fifth Street · St. Paul. Mlnnesoha 55101-1626 (651) 602-1428 Metro Info Line 602-1888 · Fax 602-1313 * TTY291-0904 An Equal Opportunity Emploglt'r