EDA 07/28/03OFFICIAL
FILE
COPY
CITY OF NEW HOPE
EDA MEETING
City Hall, 4401 Xylon Avenue North
July 28, 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 June 23, 2003
Resolution relating to a redevelopment agreement with Broadway Lanel, a limited
partnership; approving termination of the redevelopment agreement and
authorizing execution of various documents
5. Adjournment
EDA Minutes
Regular Meeting
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
NEW HOPE, MINNESOTA 55428
June 23, 2003
City Hall
CALL TO ORDER
ROLL CALL
APPROVE MINUTES
IMP. PROJECT 665
Item 4
EDA Minutes
Page 1
President Enck called the meeting of the Economic Development Authority to order
at 9:06 p.m.
Present:
W. Peter Enck, President
Sharon Cassen, Commissioner
Don Collier, Commissioner
Mary Gwin-Lenth, Commissioner
Steve Sommcr, Commissioner
Motion was made by Commissioner Collier, seconded by Commissioner Sommer,
to approve the Regular Meeting Minutes of May 27, 2003. All present voted in
favor. Motion carried.
President Enck introduced for discussion Item 4, Joint Development Proposal
Concept Consideration and Authorization to Prepare a Purchase Agreement for
City-Owned Property at 7500-7528 42"a Avenue North (Improvement Project No.
665).
Mr. Kirk McDonald, Director of Community Development, stated staff is
requesting concept consideration and authorization to prepare a purchase agreement
with the developers for a joint development proposal for the city-owned site at
7500-7528 42"a Avenue North. The proposal is for two uses: a Culvers restaurant on
the western portion of the site and three office condominium buildings (eight
separate ownership units) on the eastern portion of the site.
Mr. McDonald updated the EDA on the proposal. The developers are offering a
combined price of $510,000 for the site, or $4.62 per square foot. The developer's
representative, RSDS, initially proposed a brokerage fee of $40,000 to be paid by
the city. At the EDA's request, the brokerage fee has been eliminated from the
proposal. He also reported that storm water ponding issues have been discussed
with the developer. He illustrated the revised site plan.
Commissioner Sommer initiated discussion regarding the difference between the
appraised price and the proposed purchase price. Mr. Ken Doresky, Community
Development Specialist, commented that the appraisal did not take into
consideration the property's limitations as mandated by the MPCA.
President Enck objected to the city bearing the costs for monitoring and mitigation
plans related to the contaminated soil cleanup. He noted Electronic Industries
should be obligated to pay as they caused the contamination.
Mr. Dan Donahue, City Manager, explained that staffwould clarify this issue.
Mr. John Seibert, JCS Development, was recognized. He noted it would likely take
four months to close on the property and three months to complete construction.
Mr. McDonald recon-mended that a shared parking arrangement be explored at the
site between JCS Development and the Sunshine Factory Restaurant.
June 23, 2003
IMP. PROJECT 749
Item 5
IMP. PROJECT 734
Item 6
BROOKSTONE, INC.
Item 7
EDA Minutes
Page 2
The EDA expressed support for the joint development proposal, and directed staff
to pursue a purchase agreement.
President Enck introduced for discussion Item 5, Discussion Regarding
Development Proposal for City-Owned Property at 5501 Boone Avenue North and
Direction to Proceed (Improvement Project No. 749).
Mr. Kirk McDonald, Director of Community Development, indicated staff is
requesting EDA discussion and direction to proceed regarding a development
proposal from Project for Pride in Living (PPL), for the city-owned site at 5501
Boone Avenue North. The proposal is for the construction of a 70-unit residential
building split between owner-occupied condominiums and affordable rental units.
He expressed support for the proposal based on the following reasons: the proposal
utilizes the entire site, meets the CDBG eligibility requirements, provides potential
extra off-street parking for North Ridge Care Center, replaces some existing rental
units in the city which will be lost due to redevelopment efforts, and pays the city
market value for the property, less soil correction costs.
The EDA expressed concern with combining owner-occupied units with rental
units, and questioned whether PPL would provide assurance that at least 50% of the
units would be owner occupied.
Mr. Chris Wilson, Project for Pride in Living, was recognized. He stated 50% of the
units would be owner-occupied and covered by a separate homeowners association.
He noted PPL is undertaking a marketing study to determine the market for the
proposed owner and rental units.
The EDA held a brief discussion regarding the soils. Mr. Wilson noted his intention
of installing pilings and underground parking.
The EDA expressed support for the proposed project at 5501 Boone Avenue North,
and directed staff to continue coordination regarding the potential redevelopment of
the property.
President Enck introduced for discussion Item 6, Discussion Regarding
Development Proposal for City-Owned Property at 4317 Nevada Avenue North and
Private Property at 4301 Nevada Avenue North (Improvement Project No. 734).
Mr. Kirk McDonald, Director of Community Development, requested EDA
discussion and direction regarding a development proposal submitted by Master
Civil & Construction Engineering for the city-owned site at 4317 Nevada Avenue
North and the private property at 4301 Nevada Avenue North. The development
proposal is for the replacement of two existing single-family homes with twelve
units of market-rate townhomes. The developer is also desirous of acquiring 4415
Nevada Avenue North (the property to the north) for the construction of six
additional units.
Following discussion, the EDA declined pursuing the proposal due to the city
assistance requested and the proposed density. The EDA indicated support for a
lower density project at the location without city financial assistance.
President Enck introduced for discussion Item 7, Motion Acknowledging Expiration
of Letter of Intent with Brookstone, Inc. and Agreement to Continue Coordination
on Informal Basis for the redevelopment of the city center area.
Mayor Enck reported that Brahm Akradi, co-owner of New Hope Mall, has agreed
to serve on the City Center Task Force as Robert Rappaport's replacement (owner
of Winnetka Center).
June 23, 2003
ADJOURNMENT
The EDA expressed support to continue coordination on an informal basis with
Brookstone, Inc. for the redevelopment of the city center area.
Motion was made by Commissioner Sommer, seconded by Commissioner Gwin-
Lenth, to adjourn the meeting. All present voted m favor. Motion camed. The
New Hope EDA adjourned at 9:50 p.m.
R~pectfully submitted,
Valerie Leone
City Clerk
EDA Minutes
Page 3
June 23, 2003
EDA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
Community Development ~ '\ 7-28-03 EDA
Item No.
By: Kirk McDonald
RESOLUTION RELATING TO A REDEVELOPMENT AGREEMENT WITH BROADWAY LANEL, A LIMITED
PARTNERSHIP; APPROVING TERMINATION OF THE REDEVELOPMENT AGREEMENT AND
AUTHORIZING EXECUTION OF VARIOUS DOCUMENTS
REQUESTED ACTION
The city has received a request from LaNel Financial Group to waive the provisions of an interest rate
reduction program in connection with a 1985 redevelopment agreement. The request has been reviewed by
the city's bond counsel from Dorsey & Whitney, who is recommending that Broadway LaNel pay the EDA
$50,000 to satisfy its repayment obligations under the agreement. Staff recommends that the EDA approve
the enclosed resolution relating to a redevelopment agreement with Broadway LaNel, a limited partnership;
approving termination of the redevelopment agreement and authorizing execution of various documents, which
approves the elimination of the interest rate reduction program, and approves the payment to the city.
POLICY/PAST PRACTICE
The City Council and EDA have approved similar resolutions in the past to address redevelopment projects
and needs in the city.
BACKGROUND
The city has received the attached correspondence from LaNel Financial Group regarding the Broadway
LaNel/Anthony James Apartments multifamily revenue bonds. The correspondence pertains to the interest
rate reduction program contained in the redevelopment agreement with the HRA entered into in 1985 (a copy
of the redevelopment agreement is attached). LaNel Financial is requesting that the HRA waive the provisions
of the interest reduction program specifically with respect to section 4.08 having to do with the lien and the
required payment to the city. The correspondence states "per our discussion, this provision was a statutory
requirement at the time the redevelopment agreement was entered into and has since been removed by the
legislature and is no longer required where TIF is used to encourage development. As you are aware, we are
in the process of refunding the housing revenue bonds currently issued on this property. The lien does create
an encumbrance to the new financing."
This matter was discussed and reviewed by the city's bond counsel from Dorsey & Whitney, with the director
of finance, the city attorney and city manager.
MOTION BY /"J~,~qA2q4.//~ SECOND BY
hRFA\planning~improvement Droiec~O-LaNal int mt~ r~iH~'finn
Request for Action
Page 2
7-28-03
The city's bond counsel prepared the attached correspondence regarding this request, which states:
"In 1985 the New Hope HI:LA entered into a redevelopment agreement (the "Redevelopment Agreement") with
Broadway LaNel, a Limited Partnership ("Broadway LaNel"), in connection with the development by Broadway
LaNel of a 73-unit senior rental apartment building. The HRA established a tax increment financing district and
the city issued tax increment bonds to write down the cost of requisition of the land and clearing of the site. In
addition to providing such assistance, the HI:LA established an interest reduction program under the HRA Act
and paid 90% of the excess tax increment remaining after payment of debt service on the tax increment bonds
to Broadway LaNel in the years 1988 through 1999 to pay a portion of the interest on the housing revenue
bonds issued by the city on behalf of Broadway LaNel to finance the development. The authority to provide for
an interest reduction program was repealed by the Legislature shortly thereafter.
"The statute in existence in 1985 authorizing an interest reduction program provided that the HRA must
impose a formula under which the HI:LA potentially could be paid a portion of sales proceeds upon sale of the
development. Such statutory formula was complicated and confusing and provided that the developer be
allowed a reasonable rate of return on its investment in the property.
"Because of this statutory requirement in the redevelopment agreement a formula was provided that provides
the potential for a payment to the New Hope EDA (which has been assigned the HRA's interest in the
redevelopment agreement) upon a sale, transfer or complete refinancing of the development. Such formula
provided the EDA be paid the greater of (i) 40% of the first $125,000 of sale proceeds distributed to the parties
or (ii) 40% of the amount over the target sales price as defined in the redevelopment agreement subject to
certain adjustments. The target sales price is defined as $3,385,000 through December 31, 1986, and
thereafter compounded annually on each January 1 at 5%. As of January 1, 2003, this produces a target sales
price of approximately $7,750,000. The development is presently assessed for real estate tax purposes at
$5,503,000.
"Broadway LaNel is in the process of refinancing the development through the issuance of refunding bonds by
the city and the obtaining of a conventional loan in the amount of up to $1,555,000 from Fannie Mae. Such
refinancing triggers the obligation of Broadway LaNel to pay the EDA the amount required under the formula
in the redevelopment agreement.
"It is proposed that Broadway LaNel pay the EDA $50,000 to satisfy its repayment obligations under the
redevelopment agreement. I believe that this payment is the amount required to be paid under the formula in
the redevelopment agreement, and I would recommend that the EDA agree to this proposal and upon
payment of such amount, terminate the redevelopment agreement."
Bond counsel has prepared the enclosed resolution, which states, in part:
"Approval of Deed Amendments and Termination of Redevelopment Aqreement. The EDA approves the
execution and delivery by the EDA of the deed amendments, and the appropriate officers of the EDA are
authorized and directed to execute the deed amendments in the form approved by the officer or officers
executing the deed amendments and the attorney for the EDA. The EDA approves the termination of the
redevelopment agreement and satisfaction of the lien upon payment to the EDA of $50,000 by the developer,
and upon payment of such amount to the EDA. The appropriate officers of the EDA are authorized and
requested by the developer, the appropriate officers of the EDA are authorized and directed to execute such
agreements as may be necessary and appropriate in the opinion of the officer or officers executing any such
agreement and in the opinion of the attorney for the EDA, to evidence the termination of the redevelopment
agreement and satisfaction of the lien."
The 1985 redevelopment agreement states, in part, that:
Request for Action Page 3 7-28-03
2.031 Redevelopment Plan 85-1 and Redevelopment Proiect 85-1. After favorable recommendation by the
HRA, and after a public hearing as required by law, the city approved the Plan 85-1 and Project 85-1 on
November 12, 1985, which provided for the acquisition of the property, the removal of any structure thereon,
and the construction of a 72-unit elderly housing complex. This construction, exclusive of land acquisition and
preparation costs, is estimated to cost at least $2,910,816 and will be financed by the city by the issuance of
housing bonds, or by the redeveloper, at its option.
2.032 Tax Increment Financinq Plan 85-1. Also on November 12, 1985, in order to finance public
redevelopment costs to be incurred by the HRA and the city in connection with the Plan 85-1 and Project 85-1,
the HRA approved a tax increment financing plan.
2.033 Interest Subsidy. In order to encourage and make the proposed construction of housing for the elderly
and Iow and moderate income persons feasible, the HRA will undertake an interest reduction program under
Minnesota Statutes 462.445, subd. 10, as described more fully in section 4.04.
2.035 Statement of Intent. It is the intent of the parties that approximately 72 units of adequate and safe
housing, for elderly persons be provided in the city of New Hope, Minnesota, including not less than 20% of
whom shall be Iow or moderate income persons, and to accomplish this objective, the parties are exerting the
best efforts of both the private and governmental sectors of our society, and within the bounds of good
judgment and common sense, it is the intent of the parties to make the best use feasible of legitimate private
and governmental resource. Interpretation of this redevelopment agreement shall be made with these
objectives in mind.
4.04 Interest Reduction Proqram. in connection with the project, the HRA agrees to undertake an interest
reduction program under Minnesota Statutes, section 462.445, subdivision 10, to assist in financing of the
housing facilities which are intended primarily for occupancy by elderly individuals, including not less than 20%
of the units for persons of Iow and moderate income. To finance the redeveloper's construction and installation
of the housing facilities, the city will issue and sell the housing bonds and not to exceed $3,500,000 of the
proceeds thereof will be loaned to the redeveloper. At its option, the redeveloper may provide its own financing
for the construction of the housing facilities. In determining to proceed with an interest reduction program, the
HRA has considered (i) the availability and affordability of other govemmental programs, (ii) the availability and
affordability of private mortgage financing, and (iii) the need for additional affordable mortgage credit to
encourage the construction and enable the purchase of housing units within the jurisdiction of the HRA.
4.05 Limitations, Interest Reduction Proqram. In any calendar year where the HRA provides interest reduction
assistance for the project, at least 20% of the total assisted housing units in the project shall be held available
for rental to Iow or moderate income persons or families. In satisfaction of this requirement, the redeveloper
covenants and agrees to furnish such proof of meeting this requirement as the HRA or city may reasonably
require.
4.08 Amount of Lien. Upon transfer or sale of the housing facilities, the amount required to be paid to the HRA
to satisfy its HRA lien shall equal the greater of the following amounts:
4.081 City Share of Appreciation.
4.0811 Division 40/60. The first $125,000 of the partnership's distributable sales proceeds (i.e., cash that
would otherwise be distributed to the general partner and the limited partners) shall be distributed 40% to the
city and 60% in the aggregate to the general partner and the limited partners.
4.0812 Payment. After present value of total actual sales receipts equals the target sales price, the
partnership will pay (as soon as practicable) to the city, 40% of all subsequent deferred payments until the
outstanding principal balance of the city's share of appreciation, plus interest computed in accordance with
Request for Action Page 4 7-28-03
Section 4.0813, has been paid in full to the city. The partnership shall be credited against any amount due
hereunder for any money paid to the city under section 4.0811, above.
4.0813 Interest. The unpaid balance of the city's share of appreciation shall accrue interest (compounded
each January 1) at the weighted average bond rate beginning on the date of sale of the project. Payments
made in accordance with section 4.0812 shall first be applied toward reduction of any unpaid interest and then
towards reduction of principal.
Staff recommends approval of the resolution.
FUNDING
The city's bond counsel has stated that this $50,000 payment to the EDA will be in addition to the payment to
the city of its fee for issuing the revenue bonds. It is anticipated that the principal amount of the bonds will be
$2,655,000, so the city will be paid a fee of approximately $13,275.
ATTACHMENTS
· Resolution
· Bond Counsel Correspondence
· LaNel Financial Correspondence
· 1985 Redevelopment Agreement
· Map
CERTIFICATE AS TO RESOLUTION AND ADOPTING VOTE
I, the undersigned, being the duly qualified and acting recording officer of the New Hope
Economic Development Authority (the "EDA"), hereby certify that the attached resolution is a
true copy of Resolution No. ., entitled: RESOLUTION RELATING TO A
REDEVELOPMENT AGREEMENT WITH BROADWAY LANEL, A LIMITED
PARTNERSHIP; APPROVING TERMINATION OF THE REDEVELOPMENT
AGREEMENT AND AUTHORIZING EXECUTION OF VARIOUS DOCUMENTS (the
"Resolution"), on file in the original records of the EDA in my legal custody; that the Resolution
was duly adopted by the Board of Commissioners of the EDA at a meeting on July 28, 2003, and
that the meeting was duly held by the Board of Commissioners of the EDA and was attended
throughout by a quorum, pursuant to call and notice of such meeting given as required by law;
and that the Resolution has not as of the date hereof been amended or repealed.
I further certify that upon vote being taken on the Resolution at said meeting, the
following Boardmembers voted in favor thereof:
and the following voted against the same:
and the following abstained from voting thereon or were absent:
WITNESS my hand officially this ~ day of
,2003.
Executive Director
EDA RESOLUTION NO.
RESOLUTION RELATING TO A REDEVELOPMENT
AGREEMENT WITH BROADWAY LANEL, A LIMITED
PARTNERSHIP; APPROVING TERMINATION OF THE
REDEVELOPMENT AGREEMENT AND AUTHORIZING
EXECUTION OF VARIOUS DOCUMENTS
BE IT RESOLVED, by the Board of Commissioners of the New Hope Economic
Development Authority (the "EDA"), as follows:
1. Recitals. The Housing and Redevelopment Authority in and for the City of New
Hope, Minnesota (the "HRA") has approved a redevelopment plan, as defined in Minnesota
Statutes, Section 469.002, subdivision 16, designated as Redevelopment Plan 85-1
("Redevelopment Plan 85-1"), and a redevelopment project to be undertaken pursuant thereto, as
defined in Minnesota Statutes, Section 469.002, subdivision 14, designated as Redevelopment
Project 85-1 ("Redevelopment Project 85-1"). In connection with Redevelopment Plan 85-1 and
Redevelopment Project 85-1, the HRA and the City of New Hope (the "City") entered into a
Redevelopment Agreement dated December 9, 1985 (the "Redevelopment Agreement"), with
Broadway LaNel, a Limited Partnership, a Minnesota limited partnership (the "Developer")
whereby the HRA sold certain premises described therein (the "Land") to the Developer. The
Developer has constructed a 73-unit apartment building on the Land (the "Project"). Pursuant to
the Redevelopment Agreement, the HRA has executed and delivered to the Developer a Deed
and Covenants Running with the Land, dated as of December 1, 1985, as amended by a First
Amendment to Deed and Covenants Running With the Land, dated as of September 1, 1993 (as
so amended, the "Deed"). To secure performance of the Developer's obligations under the
Redevelopment Agreement, the HRA has imposed certain covenants, restrictions and limitations
on the Land, all as more fully set forth in the Redevelopment Agreement and the Deed, including
a lien on the Land to secure amounts payable to the HRA upon sale or transfer of the Land (the
"Lien"). Pursuant to Minnesota Statutes, Section 469.094, subdivision 2, the City transferred
control of Redevelopment Plan 85-1 and Redevelopment Project 85-1 from the HRA to the
EDA.
The Developer has proposed that the City issue its Variable Rate Demand Multifamily
Housing Revenue Refunding Bonds (Broadway LaNel Project), Series 2003 (the "Refunding
Bonds"), in a principal amount not in excess of $2,810,000 under a Trust Indenture between the
City and U.S. Bank National Association, as trustee (the "Trustee"). The proceeds of the
Refunding Bonds will be loaned to the Developer and applied to refund the City's Multifamily
Housing Development Refunding Revenue Bonds (Broadway LaNel Project), Series 1993 (the
"Prior Bonds"), issued by the City to refund bonds issued by the City in 1985 to finance the
acquisition and construction of the Project by the Developer. Fannie Mae, a corporation
organized and existing under the Federal National Mortgage Association Charter Act, 12 U.S.C.
§ 1716 et seq. ("Fannie Mae"), has agreed, subject to the satisfaction of certain conditions, to
facilitate the issuance of the Bonds by providing credit enhancement and liquidity support for the
Bonds pursuant to a credit facility. In addition, the Developer will obtain a mortgage loan in a
principal amount of up to $1,155,000 (the "Taxable Loan") from Fannie Mae. In connection
with the issuance of the Reflmding Bonds, the Deed will be amended to reflect the issuance of
the Refunding Bonds. Under the Redevelopment Agreement, the issuance of the Refunding
Bonds require the Developer to pay to the HRA to pay the amounts secured by the Lien.
The Developer has requested that the EDA (i) execute any amendments to the Deed
required to be executed by the EDA to reflect the issuance of the Refunding Bonds (the "Deed
Amendments"), and (ii)terminate the Redevelopment Agreement and satisfy the Lien upon
payment to the EDA of $50,000 by the Developer.
2. Approval of Deed Amendments and Termination of Redevelopment A~eement. The
EDA approves the execution and delivery by the EDA of the Deed Amendments, and the
appropriate officers of the EDA are authorized and directed to execute the Deed Amendments in
the form approved by the officer or officers executing the Deed Amendments and the attorney
for the EDA. The EDA approves the termination of the Redevelopment Agreement and
satisfaction of the Lien upon payment to the EDA of $50,000 by the Developer, and upon
payment of such amount to the EDA. The appropriate officers of the EDA are authorized and
requested by the Developer, the appropriate officers of the EDA are authorized and directed to
execute such agreements as may be necessary and appropriate in the opinion of the officer or
officers executing any such agreement and in the opinion of the attorney for the EDA, to
evidence the termination of the Redevelopment Agreement and satisfaction of the Lien.
Passed the 28th day of July, 2003.
President
Attest:
Executive Director
-2-
DORSEY & WHITNEY LLP
SUITE 1500
50 SOUTH SIXTH STK.IiI~T
MINNEAPOLIS, MINNESOTA 55402-1498
TI~LEPHONE: (612) 340-2600
PAX: (612) 340-2868
www. dorsey.com
JEROME P. OILLIGAN
(612) 340-2962
FAX (612) 340-2643
gilligan.jerome~dorsey.com
July 24, 2003
Mr. Daniel Donahue
City Manager
City of New Hope
4401 Xylon Avenue North
New Hope, MN 55428
Re: Redevelopment Agreement with Broadway LaNel, A Limited Partnership
Dear Mr. Donahue:
In 1985 the New Hope HRA entered into a Redevelopment Agreement (the
"Redevelopment Agreement") with Broadway LaNel, A Limited Partnership ("Broadway
LaNel"), in connection with the development by Broadway LaNel of a 73-unit senior rental
apartment building. The HRA established a tax increment financing district and the City issued
tax increment bonds to write down the cost of requisition of the land and cleating of the site. In
addition to providing such assistance the HRA established an interest reduction program under
the HRA Act and paid 90% of the excess tax increment remaining after payment of debt service
on the tax increment bonds to Broadway LaNel in the years 1988 through 1999 to pay a portion
of the interest on the housing revenue bonds issued by the City on behalf of Broadway LaNel to
finance the development. The authority to provide for an interest reduction program was
repealed by the Legislature shortly thereafter.
The statute in existence in 1985 authorizing an interest reduction program provided that
the HRA must impose a formula under which the HRA potentially could be paid a portion of
sales proceeds upon sale of the development. Such statutory formula was complicated and
confusing and provided that the developer be allowed a reasonable rate of return on its
investment in the property.
Because of this statutory requirement in the Redevelopment Agreement a formula was
provided that provides the potential for a payment to the New Hope EDA (which has been
assigned the HRA's interest in the Redevelopment Agreement) upon a sale, transfer or complete
refinancing of the development. Such formula provided the EDA be paid the greater of (i) 40%
of the first $125,000 of sale proceeds distributed to the parties or (ii) 40% of the amount over the
DORSEY & WHITNEY LLP
Mr. Daniel Donahue
July 24, 2003
Page 2
Target Sales Price as defined in the Redevelopment Agreement subject to certain adjustments.
The Target Sales Price is defined as $3,385,000 through December 31, 1986, and thereafter
compounded annually on each January 1 at 5%. As of January 1, 2003 this produces a Target
Sales Price of approximately $7,750,000. The development is presently assessed for real estate
tax purposes at $5,503,000.
Broadway LaNel is in the process of refinancing the development through the issuance of
refunding bonds by the City and the obtaining of a conventional loan in the amount of up to
$1,555,000 from Fannie Mae. Such refinancing triggers the obligation of Broadway LaNel to
pay the EDA the amount required under the formula in the Redevelopment Agreement.
It is proposed that Broadway LaNel pay the EDA $50,000 to satisfy its repayment
obligations under the Redevelopment Agreement. I believe that this payment is the amount
required to be paid under the formula in the Redevelopment Agreement and I would recommend
that the EDA agree to this proposal and upon payment of such amount terminate the
Redevelopment Agreement.
Yours Truly,
jerOme P. Gilligan
July 21, 2003
Kurt McDonald
Director of Community Development
City of New Hope
4401 Xylon Avenue No.
New Hope, MN 55428
Re:
Broadway LaNel (Anthony James Apartments)
Multi-Family Revenue Bonds
Dear Kirk:
As a follow up to our meeting last week concerning the interest reduction program contained in
the Redevelopment Agreement with the HRA entered in to in 1985, we are hereby requesting
that the HRA waive the provisions of the interest reduction program specifically with respect to
section 4.08 having to do with the lien and the required payment to the city.
Per our discussion, this provision was a statutory requirement at the time the Redevelopment
Agreement was entered into and has since been removed by the legislature and is no longer
required where TIF is used to encourage development.
As you are aware, we are in the process of refunding the Housing Revenue Bonds currently
issued on this property. The lien does create an encumbrance to the new financing.
Very truly yours,
LANEL FINANCIAL GROUP, INC.
Paul G. Brewer
President
PGB:mc
Greg Bronk
Francis W. Lang
4601 Excelsior Boulevard, Suite 601 · Minneapolis, Minnesota 55416 · 952-920-5338 · Fax 952-925-5640
REDEVELOPMENT AGREEMENT, PROJECT 85-]
between
Broadway LaNel,
a Limited Partnership,
Housing and Redevelopment Authority
In and For The City of New Hope, Minnesota,
and
City of New Hope, Minnesota
Dated as of December 9, 1985
This Document was drafted by:
CORRICK AND SONDRALL, Chartered
3811 West Broadway
Robbinsdale, Minnesota 55422
1
REDEVELOPMENT AGREEMENT, PROJECT 85-1
(REDEVELOPMENT PLAN 85-1~ REDEVELOPMENT
PROJECT 85-1, AND TAX INCREMENT
FINANCING PLAN 85-1)
This Agreement, dated the 9th day of December, 1985 by and
between Broadway LaNel, a Limited Partnership, (REDEVELOPER), the
Housing and Redevelopment Authority in and for the City of New
Hope, a municipal corporation located in Hennepin County,
Minnesota, (HRA) and the City of New Hope, Minnesota, a municipal
corporation located in Hennepin County, Minnesota (CITY), and
WITNESSETH, that in consideration of the mutual covenants
herein contained, the parties hereto recite and agree as follows:
SECTION 1. DEFINITIONS
1.01 DEFINITIONS. Each of the words and terms defined
below shall for all purposes of this Redevelopment Agreement,
have the meanings given to them in this Section.
1.011 Act means the Municipal Housing and
Redevelopment Act, Minnesota Statutes 462.411 et seq., as
amended. --
1.012 Assessment Agreement means the Agreement between
the parties and the City Assessor for certain minimum market
values for the Housing Facilities as described in Exhibit B to
this Agreement.
1.013 Assessed Value means the Assessed Value of all
taxable property in the District as determined from time to time
pursuant to state law.
1.014 Bond Resolution means any and all resolutions,
ordinances, trust indentures or other documents under which the
Housing Bonds or Tax Increment Bonds of the year designated are
issued or secured or furthered.
1.015 Bonds means the $415,000 General Obligation Tax
Increment Bonds, Series 1985B issued by the City, the principal
of and interest on which is payable in whole or in part out of
Tax Increment, to finance or provide for the payment of the
Public Redevelopment Cost of the Project.
1.016 Buildings means the 72 unit apartment rental
housing project and related facilities to be built on the
premises situated at 6066 and 6100 West Broadway, being the
premises described in Exhibit A.
2
1.017 gapital Proceeds means all amounts received or
to be received by the CITY or the HRA from the sale or lease of
property in the District.
1.018 Captured Assessed Valu~ means that portion of
the Assessed Value in excess of the Original Assessed Value as
adjusted from time to time, if any.
1.019 Cash Downpayment means all Partnership
indebtedness for which the party that purchases the Project
becomes liable or that such purchase is subject to, plus all
_payments required to be made to the Partnership or the General
Farther (including brokerage fees) by the party that purchases
the Project from the Partnership, other than any Deferred
Payments.
1.020 City means the City of New Hope, Hennepin
County, Minnesota.
1.021 City's Share of Appreciation means 40% of the
Residual Equity A~preciation; provided that {he City's Share of
Appreciation shall not exceed the Paydown Amount plus interest at
the Weighted Average Bond Rate (compounded each January 1)
Paydown Amount,
on the
as increased from time to time as payments are
made by the City to the Partnership; and provided further that
the City's Share of Appreciation shall not be less than $50,000.
1.022 Declaration of Restrictive Covenants means
restrictive covenants runnin~ be a
requirement to establish or preserve the tax exempt status of the
Housing Bonds under IRS Section 103 (b)(4)(A).
1.023 Deferred Payments means all payments (including
principal, interest, brokerage fe~s and
any other Payments
however characterized), if any, required to be made to the
Partnership or the General Partner by the party that purchases
the Project from the Partnership, other than any payments made on
or before the date of sale of the Project.
1.024 Developer is interchangeable with Redeveloper
as defined herein'~
1.024A peveloper Loan Document means any security
instruments used to finance the Housing Bonds.
1.025 Discount Rat, means the rate required to be
applied to the De~erred Payments by the then applicable Treasury
Regulations or, if no such rate is applicable, the rate on
equivalent term Treasury obligations as of the date of sale of
the Project.
1.026 District means Tax Increment Financing District
85-1 of the City ~f New Hope, as adopted by the City Council on
November 12, 1985, and legally described in Exhibit A.
1.026A General PartnerR means the two General Partners
of the Redeveloper'herein, Broadway LaNel, a Limited Partnership
namely Francis W. Lang and Eugene M. Nelson. '
1.027 Housing Bonds means the Housing Development
.Revenue Bonds, in an approximate amount not to exceed $3,50Q,000
proposed to be issued by the City of New Hope or Housing and
Redevelopment Authority, the proceeds of.which are to be used to
finance the construction and equipping of the Housing Facilities.
The Redeveloper, at its option, may provide other financing for
such construction, such as conventional mortgage financing, and
the term "Housing Bonds" shall include any such substitute financing.
1.028 Housing Facilities means the complex containing
approximately 72 units of housing, intended for occupancy by
elderly persons, of which units not less than 20% shall be
occupied by Low or Moderate Income Persons, to be constructed by
the Redeveloper on the premises described in Exhibit A in
accordance with this Redevelopment Agreement, and includes the
Land. The Housing facilities are also defined as being the
"property the construction, acquisition or improvement of which
is financed in whole or in part with the proceeds of a loan upon
which the interest payments are reduced under an interest
reduction program", which is provided for and regulated by Minn.
Stat. 462.455, and specifically, Subd. 12.
1.029 HRA means the Housing and Redevelopment
Authority in and or the City of New Hope, Minnesota.
1.030 HRA Lien means the obligatory lien on the Land
due to the use of the interest subsidy program authorized by M.S.
462.445, Subd. 10, 11 and 12.
1.031
is payable.
HRA Lien Maturity.
The time when the HRA Lien
1.031A Initial Limited Partner(s). means one or both
of the original Limited Partners of the Redeveloper herein,
Broadway LaNel, a Limited Partnership, namely, Francis W. Lang
and Eugene M. Nelson.
1.032 Land means the premises described in Exhibit A.
This term shall include any buildings constructed thereon, and
fixtures and equipment, if any, purchased with funds generated by
the Housing Bonds or Tax Increment Bonds.
1.033 Low or Moderate Income Persons means individuals
who on the date of their initial occupancy of dwelling units in
the Housing Facilities are individuals of low or moderate income
within the meaning of Section 103(b)(4)(A) of the U.S. Internal
Revenue Code.
1.034 Minimum Market Value means the minimum market
value prescribed in the Assessment Agreement, Exhibit B, as of
any given time.
1.035 Moderate Income Person is defined above under
the heading "Low or Moderate Income Persons".
1.036 ~riginal Assessed Value means the Assessed Value
of all taxable property in the District as most recently
determined by the Commissioner of Revenue of the State of
Minnesota, as of the date of certification thereof by the County
4
Auditor pursuant to Minnesota Statutes, Section 273.76, or'as
thereafter adjusted and certified by the County Auditor pursuant
to Minnesota Statutes, Section 273.76.
1.037 Outstanding when used with respect to Tax
Increment Bonds, means Bonds which have not been paid, redeemed
and prepaid or discharged in accordance with their terms or the
terms of a Bond Resolution.
1.038 Parcel means a lot, parcel, tract or plat of
land comprising a single unit for purposes of assessment for real
estate tax purposes, as of the date of adoption of this Plan.
1.039 Partnership means the Redeveloper, or its HRA
approved successor.
1.040 Paydown Amount means the total amount of Tax
Increment that is paid by the City to the Partnership for use by
the Partnership to pay a portion of the interest on the
Partnership,s long term indebtedness incurred to finance the
construction of the Project.
1.041 Plan 85-1 means Redevelopment Plan 85-1 as
approved and amended from time to time by the HRA and the City
Council pursuant to law, and as originally approved by the HRA
and the City on November 12, 1985.
1.042 Present Value of Total Actual Sales Receipts
as of any date means the sum of (a) the Cash Downpayment, plus
(b) the present values as of "the date of sale" of any Deferred
Payments actually paid through a given date, discounted at the
Discount Rate as if such present value were compounded annually
from the date of sale of the Project.
1.043 Present Value of Deferred Payments means the
present value, as of the date of sale of the Project, of all
Deferred Payments if such present value were compounded annually
at the Discount Rate.
1.044 Primarily, referring to persons of low income or
moderate income, means the same percentage as defined in the
Declaration of Restrictive Covenants.
1.045 project means the Redevelopment Project 85-1 as
approved by the HRA and City on November 12, 1985 and all
Redevelopment Activities to be undertaken with respect thereto as
approved and amended from time to time by the HRA and the City
Council.
1.046 Project Area means the two Parcels of land
described in Exhibit A to this Plan and included in the Project.
1.047 Project Facilities means the Housing Facilities.
1.048 Proposed LaNel Addition means the plat of the
Land described in Exhibit A as approved in final form by the New
Hope City Council, which will be filed with the ~ennepin County
Recorder or Registrar of Titles.
1.049 Public Redevelopment Cost means the total amount
expended and to be expended by the cITY and/or the HRA on
Eedevelopment Activities, less any Capital Proceeds.
1.050 Redeveloper (or Developer) means Broadway LaNel,
a Limited Partnership to which the land described in Exhibit A is
to be transferred for the purpose of facilitating the
construction and/or financing of the Housing Facilities; and any
person or organization succeeding to its rights and/or assuming
its obligations under this Redevelopment Agreement.
1.051 Redevelopment Activities means all actions taken
or to be taken: (1) by the HRA in establishing, implementing and
carrying out the Project and the Plan; (2) by the CITY in aid of the
Project pursuant to the Plan; and (3) by the Redeveloper in
completing the construction and installation of the Housing
Facilities.
1.052 Redeveloper Loan means the obligation of the
Redeveloper to pay for the principal and interest of the Housing
Bonds.
1.053 Redeveloper Loan Documents means the documents
involved in the obligations of .the Redeveloper in the sale of the
Housing Bonds.
1.054 Residual Equity Appreciation means the excess of
the Total Discounted Sales Proceeds over the Target Sales Price
applicable on the date of sale.
1.055 Restrictive Covenants means those restrictive
covenants required as a part of the deed to the Land from the HRA
to the Redeveloper to meet the requirements of the IRS Section
103 (b)(4)(A) to qualify as a tax exempt obligation.
1.056 Target Sales Price means $3,385,000 through
December 31, 1986, and thereafter means $3,385,000 increased each
January 1 by 5% (compounded each January 1) through the date of
the HRA Lien Maturity.
1.057 Tax Increment means that portion of the ad
valorem taxes levied on all taxable property in the District from
time to time which is allocable to the Captured Assessed Value of
such property.
1.058 Tax Increment Bonds means the $415,000 General
Obligation Tax Increment Bonds to be issued by the CITY in 1985
to finance the Public Redevelopment cost of the Redevelopment
Project 85-1.
1.059 Tax Increment District means Tax Increment
District 85-1 of the CITY, as adopted by the City Council on
November 12, 1985.
1.060 Tax Increment Plan means the Tax Increment
Financing Plan 85-1 as established on the 12th day of November,
1985 and all related and associated approved documents and
resolutions.
1.061 Total Actual Sales Receipts as of any date means
the sum of (a) the Cash Do~Dpayment plus (b) the cumulative amount
of Deferred Payments actua±~y paid as of such date.
1.062 Total Discounted Sales Proceeds means the sum of
(a) the Cash Downpayment plus (b) the Present Value. of Deferred
Payments.
1.063 Weighted Average Bond Rate means the weighted
average interest rate on the Bonds which is 8.088772%.
SECTION 2 - REPRESENTATIONS AND WARRANTIES
2.01 REPRESENTATIONS BY THE HRA. The HRA makes the
following representations as the basis for the undertaking on its
part herein contained:
2.011 HRA Authority. The HRA is a housing and
redevelopment authority duly organized and existing under the laws
of the State. Under the provisions of the Act, the HRA has the
power to enter into this Agreement and carry out its obligations
hereunder.
2.012 Redevelopment Pro~ect. The 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.
2.013 Tax Increment District. The District is a "Tax
Increment District" which was created, adopted, certified, and
approved pursuant to Minnesota Statutes, Section 273.76.
2.014 Land Acquisition and Sale. HRA proposes to (i)
acquire the Land under the terms of this Agreement, and (ii) sell
the Land acquired in the Project Area to the Redeveloper for uses
in accordance with the Redevelopment Plan.
2.015 Blight Control. The activities of the HRA are
undertaken for the purpose of removing, preventing or reducing
blight, blighting factors, or the causes of blight, and for the
purposes of eliminating or preventing the development or spread of
deteriorated or deteriorating areas.
2.016 Financing by Tax Increment. To finance the costs
of the activities to be undertaken by the HRA, the HRA proposes to use
the proceeds of Bonds issued by the CITY and to pledge the Tax Increment
to the payment of the principal of and interest on the Bonds.
2.017 Actions Affecting Taxability. Notwithstanding
any other provisions of this Agreement, no provision hereof shall
be construed as binding upon the Redeveloper and enforceable by
the HRA if such enforcement would cause the Tax Increment Bonds to
be issued hereunder to be considered "industrial development
bonds" or "private loan bonds" pursuant to Section 103(b) of the
Internal Revenue Code of 1954, as amended. Prior to exercising
any legal remedy available hereunder to the HRA, the }IRA shall
secure an opinion of bond counsel that the proposed action will
not cause the interest payable on said Tax Increment Bonds to
become subject to federal income taxation. -,
2.018 Litigation Cooperation. The HRA will cooperate
with the Redeveloper with respect to any litigation commenced with
respect to the Project.
2.02 REPRESENTATIONS AND WARRANTIES BY THE REDEVELOPER.
The Redeveloper represents and warrants that:
2.021 Limited Partnership. The Redeveloper is a
Limited Partnership, duly organized under the laws of the State
of Minnesota, is not in violation of any provisions of its
Partnership Agreement or the laws of the State, has power to
enter into this Agreement and has duly authorized the execution,
delivery and performance of this Agreement by the action of
either of its General Partners.
2.022 Agreement to Construct Housing Facilities. In
the event the Redevelopment Property is conveyed to the
Redeveloper and the City is not in default, of its obligation to
issue bonds and permits, then the Redeveloper will construct,
operate and maintain the Project Facilities in accordance with the
terms of this Agreement, and the Redevelopment Plan and all local,
state and federal laws and regulations (including, but not limited
to, environmental, zoning, building code and public health laws
and regulations), except for variances necessary to construct the
improvements contemplated in the Construction Plans approved by
the HRA and the CITY.
2.023 Minimum Cost. The Project Facilities will
constitute a permitted use under the zoning ordinance of the CITY
as amended and will be constructed at a cost of at least
$2,910,816 (excluding all Public Redevelopment Cost) in the event
the Land is conveyed to the Redeveloper.
2.024 Lawful Action. The Redeveloper has received no
notice or communication from any local, state or federal official
that the activities of the Redeveloper or the HRA in the Project
Area may be or will be in violation of any environmental law or
regulation (other than those notices or communications of which
the HRA is aware). The 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 or which would give any person a valid claim under the
Minnesota Environmental Rights Act, nor the National
Environmental Policy Act of 1969.
2.025 Destruction of Buildings or Condemnation (as
described in 2.028). Until the Bonds are paid in full, in the
event of damage to or destruction of the Housing Facilities or
any part thereof which reduces the market value of the Land and
the Housing Facilities below $2,910,816, the Redeveloper shall
have these obligations:
2.0251 Retain or Rebuild. The Redeveloper shall,
as soon as reasonably possible and in any event on or before
the second succeeding December 31 following such destruction,
time being of the essence, repair, rebuild or replace the
damaged Buildings to such extent as will cause the market
value of the Land, the Buildings and any other improvements
on the Land to equal or exceed $2,910,816, providing the
insurance is paid to the Redeveloper, and providing the City
issues the necessary permits.
2.0252 Payment in lieu of Tax Increment. If such
repair, rebuilding or replacement, to the extent required by
section 2.0251 of this Section 2.025, is not completed by
such date, the Redeveloper shall be liable to the HRA in each
subsequent year for the Tax Increment that would have been
received by the HRA had such repair, rebuilding or
replacement been completed by such date.
2.026 Permits on Timely Basis. The Redeveloper will
use its best efforts to obtain, in a timely manner, all required
permits, licenses and approvals, and will meet, in a timely manner,
all requirements of all applicable local, state and federal laws
and regulations which must be obtained or met before the Housing
Facilities may be lawfully constructed, and the City will use its
best efforts to issue permits, licenses and approvals on a timely
basis.
2.027 Covenant of Legality. Neither the execution and
delivery of this Agreement, the consummation of the transactions
contemplated hereby, nor the fulfillment of or compliance with the
terms and conditions of this Agreement is prevented, limited by or
conflicts with or results in a breach of, the terms, conditions or
provisions or any corporate or limited partnership restriction or
any evidences of indebtedness, agreement or instrument of whatever
nature to which the Redeveloper is now a party or by which it is
bound, or constitutes a default under any of the foregoing. The
Redeveloper will cooperate with the HRA with respect to any
litigation commenced with respect to the Plan, the Project, or the
Housing Facilities.
2.028 Condemnation. In the event of a taking of all of
the Land under the power of eminent domain other than by the City
and/or the HRA, or in the event a deed is given under the threat
thereof, the Redeveloper shall pay to the HRA such amount of the
condemnation proceeds as is required, together with moneys then on
hand in the debt service fund for the Bonds, to pay 100% of the
principal of all Tax Increment Bonds then outstanding and interest
accrued thereon to the date of payment. Any proceeds remaining
after the application above specified shall be the property of the
Redeveloper, subject to the provision of any Regulatory Agreement
or similar document pertaining to the Housing Bonds in each
instance. In the event of a taking of part of the Housing
Facilities, the Redeveloper shall rebuild such part of the Housing
Facilities on the Land if such rebuilding is reasonably possible,
but in any event shall take such steps as are necessary to ensure
that the market value of the Land, the Housing Facilities and any
other improvements on the Land does not fall below the Minimum
Market Value. To the extent that condemnation proceeds from a
partial taking are not required to restore the Land or any
structures thereon to serviceable condition, suitable for their
intended purposes, such proceeds shall be paid to the Redeveloper. The
rights of the HRA hereunder are subordinate to the rights of a Lender under
the Developer Loan Documents. -.
2.029 Insurance. (a) The Redeveloper shall keep and
maintain the Housing Facilities at all times insured against-such
risks and in such amounts, with such 'deductible provisions, as are
customary in connection with the operation of facilities of the
type and size comparable to the Housing Facilities, and the
Redeveloper shall carry and maintain, or cause to be carried and
maintained, and pay or cause to be paid timely the premiums for,
with respect to the Housing Facilities, direct damage insurance
covering all risks of loss, including, but not limited to, the
following:
(1)
(2)
(3)
(4)
(5)
(6)
(7)
fire
extended coverage perils
vandalism and malicious mischief
boiler explosion (but only if steam boilers
are present)
water damage
debris removal
collapse
on a replacement cost basis in an amount equivalent to the full
insurable value thereof. ("Full insurable value" shall include
the actual replacement cost of the Housing Facilities (exclusive
of foundations and footings) without deduction for architectural,
engineering, legal or administrative fees or for depreciation.)
Insurance in effect prior to the issuance by the CITY of a
Certificate of Occupancy shall be maintained on an "all-risk"
builder's risk basis during the course of construction. The
policies required by this Section 2.029 shall be subject to a no
co-insurance clause or contain an agreed amount clause, and may
contain a deductibility provision not exceeding $1,000.
(b) Policies of insurance required by this
Section 2.029 shall insure and be payable to the Redeveloper, and
shall provide for release of insurance proceeds to the
Redeveloper for restoration of loss. The HRA shall be furnished
certificates showing the existence of such insurance. In case of
loss, the Redeveloper is hereby authorized to adjust the loss and
execute proof thereof in the name of all parties in interest.
The Redeveloper shall annually file with the HRA a schedule
describing all such policies in force, including the types of
insurance, names of insurers, policy numbers, effective dates,
terms of duration or any other information the Redeveloper deem
pertinent. Such list shall be accompanied by a certificate
executed by the Redeveloper stating that, to the best of the
knowledge of the Redeveloper, insurance on the Housing Facilities
then in force complies with this Section 2.029.
2.030 Easements and Utilities. Ail necessary
easements, easement vacations, curb cuts and suitable utility
relocations to and from the Project Area are responsibility of
the Redeveloper, not the HRA.
2.03 HRA AND CITY ACTIONS. The CITY and HRA have by
resolution taken the following actions:
10
2.031 Redevelopment Plan 85-1 and Redevelopment
P~oject 85r~. After favorable recommendation by the NRA, 'and
~£L~ ~ ~uu±~c nearing as required by law, the CITY approved the
Plan 85-1 and Project 85-1 on November 12, t985 which provided
for the acquisition of the property described in Exhibit A, the
removal of any structure thereon, and the construction of a 72 unit
elderly housing complex. This construction, exclusive of land
acquisition and preparation costs, is estimated to cost at least
$2,910,816 and will be financed by the CITY by the issuance of
Housing Bonds, or by the Redeveloper, at its option. If the
Redeveloper is not in default under this Agreement, and if the
Redeveloper conforms to applicable plans and specifications of
the Code and Ordinances of the City, the City shall issue all
necessary permits.
2.032 Tax Increment Financing Plan 85-1. Also on
November 12, 1985, in order to finance Public Redevelopment Costs
to be incurred by the NRA and the CITY in connection with the
Plan 85-1 and Project 85-1, the ~RA approved a tax increment
financing plan, pursuant to the provisions of Minnesota Statutes,
Section 273.71 to 273.86, designated as Tax Increment Financing
Plan 85-1 (the "Financing Plan") which established a tax
increment financing district, as defined in Minnesota Statutes,
Section 273.73, Subd. 9, designated as Tax Increment Financing
District 85-1 (the "District").
2.033 Interest Subsidy. In order to encourage and
make the proposed construction of housing for the elderly and Low
and Moderate Income Persons feasible, the NRA will undertake an
interest reduction program under Minnesota Statutes 462.445,
Subd. 10, as described more fully in section 4.04
2.035 Statement of Intent. It is the intent of the
parties that approximately 72 units of adequate and safe housing,
for elderly persons be provided in the City of New Nope,
Minnesota, including not less than 20% of whom shall be Low or
Moderate Income Persons, and to accomplish this objective, the
parties are exerting the best efforts of both the private and
governmental sectors of our society, and within the bounds of
good judgment and common sense, it is the intent of the parties
to make the best use feasible of legitimate private and
governmental resources. Interpretation of this Redevelopment
Agreement shall be made with these objectives in mind.
SECTION 3. LAND AGREEMENTS
3.01 AGREEMENT TO SELL TO NRA. The Redeveloper has an
option to purchase the Land, as shown in Exhibit N. The
Redeveloper agrees to exercise its option to purchase the Land
concurrently with the execution of this Redevelopment Agreement,
or in the alternative, to execute a new purchase agreement with
the owner of the Land providing for an acceptable closing date
for the purchase of the Land, provided the Parties hereto concur
on the proposed modification. The Redeveloper agrees to sell the
Land to the ~RA and the HRA agrees to purchase the Land described
in Exhibit A on the terms described herein.
11
3.011 Assignment of Option. The Redeveloper may elect
to assign its option for Land or the purchase agreement, to -the
HRA concurrently with the execution of this Redevelopment Agreement.
3.012 Price. The price shall be $288,000 payable in
full at the closing .
3.013 Interest. The HRA shall not be obligated to pay
any interest on the purchase price to the date of closing.
3.014 Title Evidence. The Redeveloper shall furnish
an abstract of title or a Registered Property Abstract certified
to date, with customary searches within ten days of the execution
of this Redevelopment Agreement, or such alternative evidence of
title as the HRA shall deem to be acceptable, such as title
insurance.
3.015 Deeds. The Redeveloper agrees to convey good
and marketable fee title to the ~RA, and that conveyance to the
NRA shall be by warranty deed.
3.016 Closing. The closing of this transaction shall
be subsequent to the closing on the sale of the 1985 Tax Increment
Bonds of the City, and the Nousing Bonds, or as otherwise
determined by the City or HRA.
3.017 Taxes, Special Assessments and Utility Bills. The
Redeveloper shall be responsible for payment of all special
assessments and utility bills to the date of closing which may
pertain to the Land,~and for the payment of any real estate taxes
against the Land.
3.018 Agreement to Plat. The Redeveloper agrees to
promptly plat the Land and to cause the plat to be duly recorded
in the appropriate offices of Hennepin County, Minnesota.
3.019 Relocation of Tenants. The Redeveloper shall
provide for the vacating of the Land, and shall be responsible
for relocation costs of occupants, if any. In the event the City
is required to pay any relocation costs, due to operation of law,
the City shall be reimburSed by the Redeveloper. The City and the
HRA agree that each is unaware of any relocation requirement and
will not pay any relocation costs, unless required by law.
3.02 AGREEMENT TO SELL TO REDEVELOPER. The NRA agrees to
reconvey the Land to Broadway LaNel, a Limited Partnership, the
Redeveloper herein, on the terms and conditions described
hereinafter.
3.021 Price. The price shall be $1.00 and other good
and valuable consideration.
3.022 Title Evidence. The NRA shall furnish no
evidence of title, other than any abstracts furnished the NRA by
the Sellers, if any.
3.023 Deeds. Conveyance from the ~RA shall be by Quit
Claim Deed, in the form of Exhibit D, attached hereto.
12
3.024 Easements. The HRA may reserve such utility
easements for the benefit of the CITY as it may deem necessary at
the time of the conveyance to the Redeveloper, provided such
easements do not interfere with the proposed construction of the
Housing Facilities.
3.025 Closing. The closing of the conveyance to the
Redeveloper shall immediately follow the closing of the conveyance
of the Land to the HRA, and at the same location, provided the
Housing Bonds have been sold, and the proceeds paid over to the
City.
3.026 Dela~ in Closing. The City shall retain
ownership of the Land until the closing between the Redeveloper,
the City, and a financial institution or investment banker
providing for the remarketing of the Housing Bonds on April 1,
1986, at which time ownership shall be delivered for the purpose
of becoming a part of the security for Developer Loan Documents.
When the Land is conueyed to the Redeveloper, the Redeveloper
will concurrently give a second mortgage on the land to the HRA,
which will be junior only to the Developer Loan Documents, and
which will provide that a condition of default will exist in the
second mortgage at such time as the Redeveloper has failed to
complete the construction of the Housing Facilities as provided
in section 5.03.
3.03 GENERAL TERMS concerning the Land Agreements.
3.031 Non-Merger. The closings of the Land conveyance
and re-conveyance shall not constitute a merger of the terms and
obligations of this Redevelopment Agreement, unless such non-
merger would be patently inconsistent with the terms and
provisions of this Redevelopment Agreement of December 9, 1985,
and all such terms, conditions and obligations of the parties
shall survive said closings.
3.032 Retention of Real Estate Tax Status. As the
repayment of the Tax Increment Bonds is dependent upon tax
increment revenues from the District, including the Project Area,
the Redeveloper covenants and warrants that no action will be
taken by the Redeveloper nor will it consent in any way to cause
any Land in the District, specifically including both the Land in
the Original Project, and the Project approved in 1984, to become
exempt from real estate taxes while any of the Tax Increment
Bonds are outstanding. The parties agree that the deed for the
Land for the Project will contain a covenant running with the
land to include this provision, or that a separate covenant to
this effect, running with the Land, shall be filed with the
Hennepin County Recorder or Registrar of Titles, whichever is
appropriate, concurrently with the filing of the deed to the Land
to the Redeveloper.
13
SECTION 4. TAX INCREMENT BONDS
4.01 SALE OF TAX INCREMENT BONDS~. The General Obligation
Tax Increment Bonds of the CITY sold by the CITY under M.S.
273.77 and Chapter 475 in the amount of $415,000 shall be used to
finance the acquisition and development of the Land as shown
below, when funds from the sale are received by the CITY. The
items of cost and the amounts thereof shown below are estimated
to be necessary based upon the best engineering, legal and other
information available to the parties. It is anticipated that the
items of cost and the amounts thereof shown in each category
below may decrease or increase, but that the Public Redevelopment
Cost of the Project will not exceed $415,000, plus the amounts to
be paid pursuant to Section 4.04 hereof. The CITY and the HRA
reserve the right to pay the cost of any element of the Public
Redevelopment Costs from the proceeds of the Tax Increment Bonds
herein authorized, or directly from Tax Increments derived from
the District. The items of cost to be paid from the proceeds of
the Tax Increment Bonds 1985 are estimated as follows:
Bond Discount & Issuance Cost
$ 37,000
Razing of Existing Buildings and
Removal of Debris
Capitalized Interest
Land Costs
10,000'
80,000
288,000
TOTAL $415,000
*To be bid and constructed by CITY to be eligible for
payment under this Agreement. Plans and specifications
to be furnished by Redeveloper and approved by City.
4.02 TAX INCREMENT BOND REPAYMENT. The Tax Increment Bonds
will be general obligations of the CITY and the ~ull faith and
credit and the taxing powers of the CITY will be pledged for their
payment. The Tax Increment will be segregated and pledged to the
payment of principal and interest on the Tax Increment Bonds. In
addition to Tax Increment if necessary for the payment of the
Bonds, additional ad valorem taxes will be levied as required by
law on all taxable property in the CITY, which taxes will not be
subject to any limitation as to rate and amount.
4.03 ASSESSMENT AGREEMENT. To provide assurance to the CITY
that funds will be available from Tax Increment to pay the Tax
Increment Bonds, the HRA and the Redeveloper will concurrently
enter into an Assessment Agreement in substantially the form
attached hereto as Exhibit B.
4.04 INTEREST REDUCTION PROGRAM. In connection with the
Project the HRA agrees to undertake an Interest Reduction Program
under Minnesota Statutes, Section 462.445, subdivision 10, to
assist in the financing of the Housing Facilities which are
intended primarily for occupancy by elderly individuals, including
not less than 20% of the units for persons of Low and Moderate
Income. To finance the Redeveloper,s construction and
installation of the Housing Facilities, the City will issue and
sell the Housing Bonds and not to exceed $3,500,000 of the
proceeds thereof will be loaned to the Redeveloper. At its
option, the Redeveloper may provide its own financing for the
construction of the Housing Facilities. In determining to proceed
with an Interest Reduction Program the HRA has considered (i) the
availability and affordability of other governmental programs,
(ii) the availability and affordability of private mortgage
financing, and (iii) the need for additional affordable mortgage
credit to encourage the construction and enable the purchase of
housing units within the jurisdiction of the HRA. '
14
4.041 Necessity for Interest Reduction Program.. The
CITY and the HRA have relied upon representations the Redeveloper
has provided to the HRA that the Interest Reduction Program is
necessary for the construction and installation of the Housing
Facilities and without the Interest Reduction Program the
construction and installation of the Housing Facilities would not
be financially feasible for the Redeveloper. The City has relied
substantially upon representations and projections made by the
Redeveloper in its publication of October 31, 1985 entitled
"Broadway LaNel Elderly Apartment Homes, New Hope, Minnesota, and
upon the financial analysis of Evensen Dodge, Inc., dated
November 15, 1985.
4.042 Payment of Interest Reduction Funds. The
HRA shall pay the Interest Reduction Payments in semi-annual
installments, within 30 days after receipt of the Tax Increment
funds from Hennepin County. After payment of debt service on the
Tax Increment Bonds, the HRA will pay to the Redeveloper, or to
the holder of the indebtedness under the Housing Bonds, at the
option of the latter, 90% of the Tax Increment received from Tax
Increment District 85-1, commencing in 1988, and ending in 1999,
in a total amount not to exceed $633,104. Subject to actual
amounts of Tax Increment received by the City, payments are
projected on an estimated bases in Schedule J, in the column
headed "Transfers/Developer, @ 90%". Actual Tax Increment
payments may vary, based upon the market value actually used by
the City Assessor, or upon tax collections for the District, or
mill rates of the governmental entities with the power to levy
taxes on the District. Payments of Tax Increment shall cease in
the event of HRA Lien Maturity before the scheduled final payment
in 1999. All Tax Increment payments shall be applied by the
Redeveloper, as defined herein, to interest on the Housing Bonds,
and any amounts not so applied shall be returned to the HRA. The
Redeveloper may reimburse itself for interest actually paid on the
Housing Bonds prior to receipt of the semi-annual Tax Increment.
4.05 LIMITATIONS, INTEREST REDUCTION PROGRAM. In any
calendar year where the HRA provides interest reduction
assistance for the Project, at least 20 percent of the total
assisted housing units in the Project shall be held available for
rental to Low or Moderate Income Persons or families. In
satisfaction of this requirement the Redeveloper covenants and
agrees to furnish such proof of meeting this requirement as the
HRA or City may reasonably require.
4_.06 REPORTING .BY THE HRA. As required by M.S. 462.445,
Subd. 11 the HRA shall on or before January 2 of each year report
to the commissioner of the Minnesota Department of Energy,
Planning and Development, a description of the program
established and a description of the recipients of interest
reduction assistance. The Redeveloper agrees to furnish the HRA
with this information at such time and in such form as the HRA
shall determine. The HRA shall also provide and publish an annual
statement as required by M.S. 273.74, Subd. 5.
4.07 LIEN OF HRA. As provided in M.S. 462.445, Subd. 12,
(See Exhibit F), upon the sale or transfer of the Housing
Facilities and premises described in Exhibit A the HRA shall,be
15
paid an amount determined hereinafter and this obligation shall
be secured by a lien upon the premises described in Exhibit' A.
4.08 AMOUNT OF LIEN. Upon transfer or sale of the Housing
Facilities, the amount required to be paid to the HRA to satisfy
its HRA Lien shall equal the greater of the following amounts:
4.081 City Share of Appreciation.
4.0811 Division 40/60. The first $125,000 of the
Partnership's distributable sales proceeds (i.-e., cash that would
otherwise be distributed to the General Partner and the Limited
Partners) shall be distributed 40% to the City and 60% in the
aggregate to the General Partner and the Limited Partners.
4.0812 Payment. After Present Value of Total
Actual Sales Receipts equals the Target Sales Price, the Partnership
will pay (as soon as practicable) to the City, 40% of all subsequent
Deferred Payments until the outstanding principal balance of the
City's Share of Appreciation, plus interest computed in accordance
with Section 4.0813, has been paid in full to the City. The
Partnership shall be credited against any amount due hereunder for
any money paid to the City under section 4.0811, above.
4.0813 Interest. The unpaid balance of the City's
Share of Appreciation shall accrue interest (compounded each
January 1) at the Weighted Average Bond Rate beginning on the date
of sale of the Project. Payments made in accordance with Section
4.0812 shall first be applied toward reduction of any unpaid
interest and then towards reduction of principal.
4.082 Formula Sum. The statutory formula (See Exhibit
F) for the terms and computation of the minimum HRA Lien follows.
Its application is detailed in Exhibit G.
a)
b)
c)
d)
the sale price of the property, less;
the downpayment, any payments of principal, other
payments made to construct, acquire or improve the
property and any outstanding liens or mortgages
securing loans, advances, or goods and services
provided for the construction, acquisition or
improvement of the property, less;
the amount, if any, which the authority determines
should be allowed for the developer or other
benefited property owner as a return on the
developer's or other benefited property owner's
investment in the property, multiplied by;
a fraction, the numerator of which is the interest
reduction payments made by the authority and the
denominator of which is the total of the
downpayment, all principal and interest payments
including any portion paid by the authority, and
other payments made to construct, acquire or
improve the property. In the case of a transfer,
other than an arms-length sale, an appraisal shall
be substituted for the sale price.
16
4.09 HRA LIEN MATURITY. It is the intention and agreement
of the parties that in compliance with M.S. 462.445 (See Exhibit
F), Subd. 12, that the HRA Lien Maturity take place upon the
-benefited owner's sale or transfer of the property". The "property"
in this Project is the Housing Facility, and the -benefited owner"
of the Housing Facilities is a Limited Partnership, with two
General Partners, and two Limited Partners at the time this Agreement
is executed. A sale or transfer of the Housing Facilities or of any
partnership interest in the Redeveloper, of any nature, voluntary or
involuntary, shall constitute the HRA Lien Maturity, except as follows:
4.091 Initial Sale of Limited Partnership Interests.
The parties understand that the Redeveloper or Initial Limited
Partners intend to sell some Limited Partnership interests after
the execution of this Agreement, and such sales or transfers shall
not constitute the HRA Lien Maturity, if they are completed before
December 31, 1987.
4.092 Subsequent Sale of Partnership Interests. After
December 31, 1987, the sale or transfer of less than 70% of the
Limited Partnership interests over a 12 month period shall not
constitute the HRA Lien Maturity if there are not more than 5
Limited Partnership interests at any one time. If there are more
than 5 Limited Partnership interests, the sale or transfer of
more than 50% of the Limmited Partnership interests over a twelve
month period, after December 31, 1987, shall constitute HRA Lein
Maturity.
4.093 Death of a Partner. The death of either a
General or Limited Partner shall not constitute the HRA Lien
Maturity, nor transfer to or from an estate resulting therefrom.
4.094 Additional Financing. Supplementary financing
by the Redeveloper for the purposes of repair, remodeling or
renovation, providing no distribution of money or item of any
value is made from the proceeds of the refinancing to any General
or Limited Partner, or the Redeveloper entity, directly or
indirectly, shall not constitute the HRA Lien Maturity.
4.095 Total Refinancing of the Housing Bonds shall not
be an exception hereunder, and shall constitute the HRA Lien
Maturity.
4.10 CREATION OF SUPERIOR LIENS. The HRA Lien is
subordinate to the Declaration of Restrictive Covenants, and the
anticipated liens of the Developer Loan Documents, but this
subordination shall not be construed as granting the Redeveloper
the right to burden the Land with any lien superior to the HRA
Lien other than those specified in this paragraph or section
4.094. In addition, the liens which may be created by the
original Housing Bond documents, the HRA Lien will be subordinate
to any mortgage or lien created to refinance the original Housing
Bonds, or to secure money to repair or renovate the Housing
Facilities if such money is actually used for repair or
renovation, and if the total of all such superior liens does not
exceed the original Housing Bond amount, estimated at this time
to be not more than $3,500,000.
17
4.11 PARTNERSHIP INTEREST AS SECURITY. Nothing contained
in these Sections 4.09 through 4.098 shall be construed to limit
or prohibit the right of the Redeveloper to pledge or otherwise
subject the partnership interests of the Redeveloper to a security
agreement, provided such pledge or security agreement does not
create rights superior to the HRA Lien.
4.12 FORECLOSURE. If the HRA Lien is not paid upon HRA
Lien Maturity, the HRA shall have the right to foreclose on said
lien in a manner consistent with the procedure for foreclosure of
a real estate mortgage in Minn. Stat. Chapter 582, including the
right of redemption.
4.13 EXPIRATION OF LIEN. The right of the HRA to the
lien provided for herein shall expire only upon payment or by
mutual agreement of the parties.
SECTION 5. RENTAL REQUIREMENTS; COMPLETION OF CONSTRUCTION
5.01 DEED AND COVENANTS. The financing program of the
parties requires that the Redeveloper and the HRA meet certain
criteria in order to meet certain housing needs perceived by the
authorizing legislation. Therefore, the parties agree that the
Restrictive Covenants included in the deed from the HRA to the
Redeveloper (see Exhibit D) as finally determined pursuant to
statutory requirements shall be filed with the County Recorder
or Registrar of Titles for Hennepin County, Minnesota, and agree
that if further covenants, or modifications of the covenants are
required in order to meet statutory requirements to accomplish
the intent of this Redevelopment Agreement, the appropriate
documents will be executed and delivered in a manner to
accomplish the intent of this Redevelopment Agreement.
5.02 GUARANTY OF CONSTRUCTION COMPLETION. The
Redeveloper agrees that construction of the Housing Facilities
provided for herein, shall be aggressively pursued, and that
construction will be completed on or before December 31, 1986,
except as provided in section 5.03, all to be in accordance with
plans and specifications to be approved by the CITY. Francis W.
Lang and Eugene M. Nelson, General Partners of the Redeveloper,
execute this Agreement for the purpose of providing their
personal guaranty that the Housing Facilities will be constructed
in accordance with the terms of this Agreement, as more fully set
forth in Exhibit K, completion Guaranty Agreement, attached
hereto and executed by the said Guarantors. The Redeveloper
further agrees to provide an irrevocable letter of credit to the
City in the amount of $127,000 to be conditioned upon completion
of the Housing Project by December 31, 1986, or as unavoidably
delayed as described in section 5.03.
18
5.03 FAILURE TO COMPLETE CONSTRUCTION. Except
unavoidable delays as provided in the preceding section, if.~
condition of default exists in the agreement of the Redeveloper
to complete construction of the Housing Facilities by December
31, 1986, the HRA may, at its option, declare the Redeveloper to
be in default, and order the Redeveloper to show cause, at a
public hearing held by the HRA, as to why the work of the
Redeveloper should not be terminated, with the HRA to complete
the Project, with payment for such completion to be a charge
against the performance bond, or other security furnished under
5.02. The HRA may thereafter proceed to complete the Project and
enforce its claim for payment against the Redeveloper and its
surety or security, if deemed in the best interests of the
Project and the protection of the Tax Increment. The time.of
completion shall be extended for a period of time equivalent to
unavoidable delays in the construction of the Housing facilities
caused by strikes, natural disasters, force majeure, material
shortages for which the Redeveloper is not responsible, and any
other matter beyond the reasonable control of the Redeveloper.
SECTION 6. PLATTING REQUIREMENTS
6.01 OFF-SITE PLAT REQUIREMENTS. Concurrent with the filing
of the plat of proposed LaNel Addition, the CITY Code requires
that the-certain Dff-site improvements be provided .to CITY ~
standard specifications.
These requirements are determined by the City Engineer under
the City Code, and the Redeveloper agrees to provide such off-
site improvements no later than June 30, 1987.
6.02 PLAT BOND WAIVER. In consideration of the agreements
herein by the Redeveloper to complete the platting requirements of
the CITY, the CITY waives the customary plat bond in the amount
of 150% of the Engineer's estimated cost as security for off-site
improvements.
SECTION 7. GENERAL
7.01 NOTICES. Ail notices, certificates or other
communications hereunder shall be sufficiently given and shall be
deemed completed when mailed by first-class mail, postage prepaid,
with proper address as indicated below. Until otherwise provided
by the respective parties, all notices, certificates and
communications to each of them shall be addressed as follows:
To the Redeveloper:
Lang-Nelson Associates, Incorporated
4601 Excelsior boulevard, Suite 650
Minneapolis, Minnesota 55416
Stephen J. Davis, Esq.
4114 IDS Center
80 South Eighth Street
Minneapolis, Minnesota
55402
19
To the HRA:
The Housing and Redevelopment Authority
in and for the City of New Hope, Minnesota
4401 Xylon Avenue North
New Hope, Minnesota 55428
Attention: Executive Director
To the City:
City of New Hope
City Manager
4401 Xylon Avenue North
New Hope, Minnesota 55428
7.02 INDEMNIFICATION. The parties agree that customary and
reasonable administrative, engineering, fiscal consultant, legal
and all other costs which are necessarily incurred by the CITY
and/or the HRA from time to time, both prior and subsequent to
the execution of this Redevelopment Agreement in its preparation,
interpretation, administration, amendment or proposed amendment,
and enforcement, as well as prior to and subsequent to the sale
of the Housing Revenue and Tax Increment Bonds of the City are
the responsibility of the Redeveloper, and the Redeveloper agrees
to promptly reimburse the CITY for such costs as it incurs and
pays from time to time. This obligation shall remain in effect
until one year after the bonds provided for herein have been paid
in full. The CITY represents that such costs are customarily
nominal or non-existent in most years during the term of the
Bonds, except where the incurring of such costs are directly
attributable to acts or requests of a Redeveloper.
pa
7.03 SEVERABILITY. The provisions of this Redevelopment
Agreement are severable and if any of its provisions, sentences,
clauses or paragraphs shall be held unconstitutional, contrary to
statute, exceeding the authority of the CITY or otherwise illegal
or inoperative by any court of competent jurisdiction, the
decision of such court shall not affect or impair or render
unenforceable any of the remaining provisions.
7.04 EVIDENCE OF COMPLIANCE. The CITY or the HRA may
require from the Redeveloper evidence satisfactory to the CITY
HRA of compliance with the standards and requirements set forth
herein and in connection therewith, the CITY, or the HRA or the
representatives of either or both may inspect the relevant books
and records of the Redeveloper at all reasonable times in the
normal course of business in order to confirm such compliance,
providing Redeveloper is given 24 hours advance notice, in
writing.
or
7.05 NO DISCRIMINATION. The Redeveloper for itself, and its
successors and assigns, agrees that in the construction and
operation of the Facilities the Redeveloper will not discriminate
against any employee or applicant for employment or residence
because of race, color, religion, sex or national origin.
7.06 INCORPORATION BY REFERENCE. Exhibits A through J
attached, are incorporated in this Redevelopment Agreement by this
reference, and made a part hereof as if fully set forth herein.
2O
7.07 SURVIVAL OF COVENANTS. Ail covenants, agreements,
representations and warranties herein and in deeds or other
documents delivered pursuant to this Redevelopment Agreement shall
survive the execution and delivery of deeds or other documents,
and shall continue in full force and effect, and no covenants,
agreements, representations and warranties shall be.removed,
terminated or rendered inoperative or of no effect by merger.
7.08 LAW GOVERNING. This Agreement shall be construed in
accordance with and governed by the laws of the State of
Minnesota, and the United States Internal Revenue Code of 1954, as
amended.
7.09 CAPTIONS. The captions of the paragraphs and
subparagraphs of this Agreement are inserted for convenience only
and shall not be deemed to constitute a part of this Redevelopment
Agreement.
7.10 COUNTERPARTS. This Agreement may be executed
simultaneously in counterparts, each of which shall be deemed an
original, and it shall not be necessary in making proof of this
Agreement to product or account for more than one such counterpart.
7.11 BINDING EFFECT. This Agreement shall inure to the
benefit of and shall be binding upon the HRA, the CITY and the
Redeveloper and their respective successors and assigns.
21
IN WITNESS WHEREOF, the CITY, the HRA and the Redeveloper have
caused this Redevelopment Agreement to be executed in their
respective names, as of the date first above written.
(SEAL)
CITY~ NEW HOBE, MINNESOTA
// ~/Mayor , -
City Manager
(SEAL)
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN ~_FOR THE _CITY OF NEW HOPE, MINNESOTA
/ . .~ Cha.ixman
By ~ ~;" ~:- .~- ~ ?, ~, .,~ _.'
~ Secretary-~reasurer
h' ,% ',.~ '
' - ~cu{ive Director ~
BROADWAY LaNel,
LIMITED PARTNERSHIP
22
STATE O~~ MINNESOTA)
) SS.
COUNTY OF HENNEPIN)
On this ~.day of December, 1985, before me a Notary Public
within and foe sazd County, personally appeared Edw. J. Erickson,
Mayor and Daniel J. Donahue, City Manager, of the City of New
Hope, a Minnesota municipal corporation; that the instrument was
signed on behalf of said corporation by authority of its
governing body, and acknowledged said instrument to be the free
act and d_.e..eA__o__f___s__a__i_d__._c_.o.r_p_.o..r.a__t__i.o.~.
~ ~'"'~..~..~.{." My Ccmm.ssion Expires Sept. 24, 1~ ~ -- 7' Notary Public
~_-:::::_-::::::::_-:: .............. z
STATE OF MINNESOTA)
) SS.
COUNTY OF HENNEPIN)
On this ~ day of December, 1985, before me a Notary Public
within and for said County, personally appeared Edw. J. Erickson,
Chairman, W. Peter Enck, Secretary-Treasurer, and Daniel J.
Donahue, Executive Director of the Housing and Redevelopment
Authority in and for the City of New Hope; that the instrument
was signed on behalf of said corporation by authority of its
governing body, and acknowledged said instrument to be the free
act and *-~-~-~--~ ..... ~A-~.~.~v=~.=e { ,-
;~ ~.~ HENNEPIN COUNTY ~ ~ ---- ~ - ~'~
~ ~1~ My ~mmi.t~n Expires ~ept. 24, 1989~ /Notary Public
STATE OF MINNESOTA)
) SS.
COUNTY OF HENNEPIN)
On this.~ay of December, 1985, before me, a Notary Pub~
within and for said County, personally appeared _~.<~-~ ~,
to me personally known, ~;]~o, being by
me duly sworn, did say that he is the General Partner of Broadway
LaNel, a Limited
instrument to be
(SEAL)
STATE OF MINNESOTA)
) SS.
COUNTY OF HENNEPI~
On this day of Dec~ber, 1985, before me a Notary Public
within and for said County, personally appeared Francis W. Lang
and Eugene M. Nelson, to me personally known, who, being by me
duly sworn, said that they acknowledged said
their free act and deed·
Partnership, and that h~ acknowledged said
the free act and .~~~ %i~artnership.
~ NdtWry Public
instrument to be
( SEAL )
23
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