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082701 EDAOfficial File Copy CITY OF NEW HOPE EDA MEETING City Hall, 4401 Xylon Avenue North August 27, 2001 President W. Peter Enck Commissioner Sharon Cassen Commissioner Don Collier Commissioner Mary Gwin-Lenth Commissioner Pat LaVine Norby 1. Call to Order 2. Roll Call 3. Approval of Regular Meeting Minutes of July 23, 2001 4. Discussion Regarding PILOT Agreement with Opportunity Partners 5. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH NEW HOPE, MINNESOTA 55428 Approved EDA Minutes Regular Meeting July 23, 2001 City Hall CALL TO ORDER ROLL CALL APPROVE MINUTES PROPOSED BOND ISSUANCE Item 4 President Enck called the meeting of the Economic Development Authority to order at 9:56 p.m. Present: W. Peter Enck, President Sharon Cassen, Commissioner Don Collier, Commissioner Mary Gwin-Lenth, Commissioner Pat LaVine Norby, Commissioner Motion was made by Commissioner Cassen, seconded by Commissioner Norby, to approve the Regular Meeting Minutes of June 25, 2001. All present voted in favor. Motion carried. President Enck introduced for discussion Item 4, Resolution Waiving Notice and Consenting to Financing of a Project by the Hennepin County Housing and Redevelopment Authority Within the Area of Operation of the City of New Hope, Minnesota, Economic Development Authority. Mr. Ken Doresky, Community Development Specialist, stated Opportunity Panners is a Minnesota nonprofit operation that owns and operates 17 group homes in Henuepin County for mentally and physically disabled persons. One of the homes is located in the City of New Hope at 2705 Ensign Avenue North. The company originally purchased the group homes with conventional bank financing and secured the various homes with mortgages. Oppommity Panners has requested that the Hennepin County Housing and Redevelopment Authority (HRA) issue its tax exempt revenue bonds and loan the proceeds of such bonds to the borrower so that the outstanding mortgage loans may be consolidated into a single loan and to refinance the debt on a tax exempt basis. Minnesota Statutes state that the Hennepin County HRA may exercise powers of a housing and redevelopment authority within the territorial boundaries of the County. The statutes also provide that before the County HRA may participate in a project that lies within a territory governed by a separate municipal HRA, the Hennepin County HRA must notify and obtain the consent of the municipal HRA to its activities within such territory. The New Hope Economic Development Authority, which has the powers of a housing and redevelopment authority, is being requested to support this action. Other jurisdictions participating in this venture include the cities of Crystal, Richfield, Bloomington, St. Louis Park, Golden Valley, Elk River, and Plymouth. Mr. Doresky explained that in the past the EDA has supported joint-city bonding projects to assist in the refinancing and rehabilitation of nonprofit group homes. The EDA has also implemented PILOT (payment in lieu of taxes) agreements in cooperation with some tax-exempt property owners. The resolution before the EDA does not contain this provision but could be amended if so desired by the EDA. He noted the City of Crystal approved this request subject to a condition that would require execution of an agreement between the borrower and the City providing for payment in lieu of taxes. New Hope EDA Page 1 July 23, 2001 EDA RESOLUTION 01-01 ADJOURNMENT Mr. Jon Thompson, President of Oppormmty Parmers, was recognized. President Enck commented that the City is gaming more group homes that could eventually be tax-exempt properties. He noted cities must become active and provide input to the state legislature. Mr. Thompson commented of his preference to negotiate a payment alternative rather than a PILOT agreement. He spoke of the importance and necessity of group homes and retaining responsible personnel. The EDA expressed reluctance to adopt a resolution without any guarantees of payment options. Commissioner Collier introduced the following resolution and moved its adoption subject to the inclusion of a PILOT agreement "RESOLUTION WAIVING NOTICE AND CONSENTING TO FINANCING OF A PROJECT BY THE HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY WITHIN THE AREA OF OPERATION OF THE CITY OF NEW HOPE, MINNESOTA, ECONOMIC DEVELOPMENT AUTHORITY". The motion for the adoption of the foregoing resolution was seconded by Commissioner Cassen, and upon vote being taken thereon, the following voted in favor thereof: Enck, Cassen, Collier, Gw/n-Lenth, and the following voted against the same: None; Abstained: None; Absent: Norby; 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 Cassen, to adjourn the meeting. All present voted in favor. Motion carried. The New Hope EDA adjourned at 10:15 p.m. ~Re_?ectfully. su! .mi~, Valerie Leone City Clerk New Hope EDA Page 2 July 23, 2001 EDA RE( UEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development 8-27-01 EDA  Item No. By: Kirk McDonald By: 4 DISCUSSION REGARDING PILOT AGREEMENT WITH OPPORTUNITY PARTNERS REQUESTED ACTION Subsequent to the July 23 EDA meeting, the City Attorney and staff have met with representatives from Opportunity Partners regarding a Payment in Lieu of Property Taxes (PILOT) Agreement, as requested by the EDA. Staff requests to discuss the proposal from Opportunity Partners with the EDA. POLICY/PAST PRACTICE One of the primary goals of the 2001 City Plan is to pursue the maintenance of residential properties within the City, and this is also identified as one of the top goals in the Comprehensive Plan. In the past, the City Council and EDA have supported joint-city bonding projects to assist in the refinancing and rehabilitation of nonprofit group homes. The City Council/EDA has also implemented PILOT agreements in cooperation with some tax- exempt property owners in the past. BACKGROUND Opportunity Partners is a Minnesota nonprofit operation that owns and operates 17 group homes in Hennepin County for mentally and physically disabled persons. One of the homes is located in the City of New Hope at 2705 Ensign Avenue North. The company originally purchased the group homes with conventional bank financing and secured the various homes with mortgages. Opportunity Partners has requested that the Hennepin County Housing and Redevelopment Authority (HRA) issue its tax exempt revenue bonds and loan ~the proceeds of such bonds to the borrower so that the outstanding mortgage loans may be consolidated into a single loan and to refinance the debt on a tax exempt basis. Minnesota Statutes state that the Hennepin County HRA may exercise powers of a housing and redevelopment authority within the territorial boundaries of the County. The statutes also provide that before the County HRA may participate in a project that lies within a territory governed by a separate municipal HRA, the Hennepin County HRA must notify and obtain the consent of the municipal HRA to its activities within such territory. The New Hope Economic Development Authority, which has the powers of a housing and redevelopment authority, was requested to approve a resolution supporting this action. {cont'd.) MOTION BY ~,/}~ SECOND BY I:rfa\ Request for Action Page 2 8-27-01 The standard resolution provided by Faegre & Benson, the legal firm coordinating the transaction, states that: The New Hope EDA waives any notice that may have been required and acknowledges receipt of the proposal that the Hennepin County HRA finance a project within the area of operation of the New Hope EDA, and · The New Hope EDA consents to the Hennepin County HRA's activities within the area of operation of the New Hope EDA with respect to the proposed financing. Other jurisdictions participating in this venture include the cities of Crystal, Richfield, Bloomington, St. Louis Park, Golden Valley, Elk River and Plymouth. At the July 23 EDA meeting, staff informed the EDA that the City of Crystal approved the resolution subject to a condition that would require execution of an agreement between the Borrower and the City providing for a payment in lieu of taxes, and advised that the EDA may want to discuss that issue. The EDA responded that a payment in lieu of taxes should be considered, the New Hope resolution was modified to include a PILOT as a condition of approval, and staff was directed to meet with Opportunity Partners, negotiate a PILOT and return to the EDA. On August 10, the City 'Attorney, Finance Director, and Community Development staff met with representatives from Opportunity Partners regarding a PILOT agreement. The Finance Director estimated that the amount of city taxes payable for the property for 2002 would be approximately $700. Opportunity Partners explained their current financing hardships, which are outlined in the attached correspondence, and stated that an annual PILOT payment of $700 places a financial hardship on their organization and the individuals they serve. The group is proposing paying something equivalent to the police and fire portion of the city tax base, or computed at 55 percent of the estimated $700, which would be $385. The group is also proposing to limit the payments in lieu of taxes to the time period when the new mortgage is in effect and that the payment sunset, if and when the loan is paid in full or the portion associated with the New Hope property, is paid. The group says that they feel this is a reasonable proposal and that other cities such as Plymouth, Richfield, and Bloomington do not require a PILOT payment. The EDA needs to determine if it will accept a partial PILOT payment, require the full amount to be paid, or reconsider the PILOT condition. While staff understands the rational for just paying a portion of the total amount, no other property in the City has the option of selecting the services it will pay for. Therefore, staff thinks it would be easier to require either no payment or a full payment. The EDA is requested to give staff direction on how to proceed with this matter, as the closing on the bonds is scheduled for September 10. The City of Crystal has not yet negotiated a PILOT agreement, but is aware of the proposal to New Hope and staff will maintain contact with them regarding their negotiations. ATTACHMENTS · 8115 Opportunity Partners Correspondence · 7/23 EDA Request AUG, 17,2001 2:55PM OPPORTUNITY Oppomtm Partners PARTNERS NO, 0870 P. £/4 5500 Opportuniq~ Court Minnetonka, MN 55343 www, opp orrunities.org Building Futures Together August IS, 2001 Phone: (952) 938-5511 lax: (952) 930-4279 TTY: (952) 930-4293 Mr Kirk McDonald Community Development Director City of New Hope 4401 Xylon Ave No New Hope, MN 55428 Dear Kirk: Enclos,d is financial informat/on for the home operated by Opportunity Partners at 2705 l~nsign Ave No. For the six months ended June 30, 2001 Opportunity Partners has a Room and Board loss of $782. As you know we arc in thc process of refinancing this home with a tax exempt bond issue. The current mortgage interest rate is 7.25% plus PMI of.25% for a total interest rate of 7.5%. We believe the interest rate on the tax exempt bond will come in at 5.5% plus expenses, for a total interest rate of 6%. Thc estimated difference in our monthly payment based on our mortgage of $148,500 will be $123. Annually, the difference is $1,476. The interest rate on the new loan is adjustable to current market conditions at the cud of the seventh year, and can be prepaid at any time without penalty. It is entirely possible that we will lose much of the monthly and annual financing savings when the interest rate adjusts after the seventh year. The interest that is saved in the first year is at its greatest mount and decreases over the term of the loan. During thc course of our meeting with your staff on August 10 we discussed the payment in lieu of city property taxes, PILOT. We understand that thc estimated amount for 2002 will be $700. We made it clear that thc full $700 places a financial hardship on our organization and the individuals wc scrvc. Our purpose J~ refinancing is tn e~iminate the operating loss in this program and to provid~ some reseeve for potential vacancies. When vacancies occur we are not paid for the vacant day,, yet we continue to incur most of the operating costs. We have not yet incurred vacancies at the home at 2705 Ensign. We made note of the fact that this program is not a cost reimbursement based program. We do not have the option to simply p~ss these co,ts through, as do some government funded programs. Our paymcut is established on the basis ofori~nal costs plus a small annual increase. Typically, the annual increase is 2% or less. We propose paying somcthi-g equivalent to the pohce and ~ portion of the city tax. Computed at 55% of the estimated $700, this would be $385..This seems to us to be a more equitable share of the financing savings. We further propose to limit the payments in lieu of taxes to the time period whe~ the new mortgagc is in cffcct. That is, we propose that the payment in lieu of taxe.~ su-.qet if and when we payoffthis loan in full or payoff the portion of the loan identified with this property. We fccl thi.q is a reasonable proposal Selected programt at Opportunity Partnars have been accredited by CARE An Equal Opportunity fi, raptoyer AUG, 17. 200i 2'55PM OPPORTUNITY PARTNERS NO. 0870 P. 3/4 hmsmuch as most cities did not requJr~ a PILOT payment, including Plymouth, Richfield, Bloomington, and Elk River. Plesse fee1 free to contact me if you have my questions or need more information. Jon H Thompson President AUG, 17.2001 2'55PM OPPORTUNITY PARTNERS NO, 0870 P. 4/4 Opportunity Partners Financial Report for 2705 Ensign, New Hope For the Six Month Period 1/1/01 - 6/30/01 REVENUE RoOM & BOARD REVENUE For the location 2705 Ensign Ave, New Hope TOTAL ROOM & BOARD REVENUE For the Six Month Period 1/1/01 - 6/30/01 23,516.55 23,516.55 EXPENSES OCCUPANCY Buildings & Grounds Supplies Utilities Trash Collection Building Repair & Maintenance Mortgage Interest Property & Liability Insurance TOTAL OCCUPANCY DEPRECIATION Depreciation of Office Equipment Depreciation of Vehicles Dep .mciation of Building TOTAL DEPRECIATION MEALS & DIETARY Food & Meals Dietary Consultants TOTAl. MEALS & DIETARY TELEPHONE & COMMUNICATION Telephone Cell Phone & Pager TOTAL COMMUNICATION MAINTENANCE STAFF Maintenance Services 709.83 1,652.86 162.25 1,157.93 5,326.03 ~.~.00 9,452.90 279.84 1.140.12 3,415.20 4,835.16 3,177.07 44.50 3,221.57 470.60 162.71 633.51 3,490.00 692.86 4,182.86 GENERAL & ADMINISTRATIVE 1,973.00 24,299.00 -782A5 TOTAL EXPENSES NET GAIN OR LOSS EDA REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section Community Development 7-23-01 EDA Item No. By: Kirk McDonald B~,: RESOLUTION WAIVING NOTICE AND CONSENTING TO THE FINANCING OF A PROJECT BY THE HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY WITHIN THE AREA OF OPERATION OF THE CITY OF NEW HOPE, MINNESOTA, ECONOMIC DEVELOPMENT AUTHORITY REQUESTED ACTION Staff is requesting that the EDA approve the attached Resolution Waiving Notice and Consenting to the Financing of Project by the Hennepin County Housing and Redevelopment Authority Within the Area of Operation of the City of New Hope, Minnesota, Economic Development Authority. After discussing this request, the EDA may want to modify the resolution regarding a PILOT (payment in lieu of taxes) agreement. POLICY/PAST PRACTICE One of the primary goals of the 2001 City Plan is to pursue the maintenance of residential properties within the City, and this is also identified as one of the top goals in the Comprehensive Plan. In the past, the City Council and EDA have supported joint-city bonding projects to assist in the refinancing and rehabilitation of nonprofit group homes. The City Council/EDA have also implemented PILOT agreements in cooperation with some tax- exempt property owners in the past. BACKGROUND Opportunity Partners is a Minnesota nonprofit operation that owns and operates 17 group homes in Hennepin County for mentally and physically disabled persons. One of the homes is located in the City of New Hope at 2705 Ensign Avenue North. The company originally purchased the group homes with conventional bank financing and secured the various homes with mortgages. Opportunity Partners has requested that the Hennepin County Housing and Redevelopment Authority (HRA) issue its tax exempt revenue bonds and loan the proceeds of such bonds to the borrower so that the outstanding mortgage loans may be consolidated into a single loan and to refinance the debt on a tax exempt basis. Minnesota Statutes state that the Hennepin County HRA may exercise powers of a housing and redevelopment authority within the territorial boundaries of the County. The statutes also provide that before the County HRA may participate in a project that lies within a territory governed by a separate municipal HRA, the Hennepin County HRA must notify and obtain the consent of the municipal HRA to its activities within such territory. The New Hope Economic Development Authority, which has the powers of a housing and redevelopment authority, is being requested to approve the attached resolution supporting this action. MOTION BY SECOND BY TO: 07-23-01 Request for Action Page 2 The resolution states that: · The New Hope EDA waives any notice that may have been required and acknowledges receipt of the proposal that the Hennepin County HRA finance a project within the area of operation of the New Hope EDA, and · The New Hope EDA consents to the Hennepin County HRA's activities within the area of operation of the New Hope EDA with respect to the proposed financing. Other jurisdictions participating in this venture include the cities of Crystal, Richfield, Bloomington, St. Louis Park, Golden Valley, Elk River and Plymouth. In discussing this request with staff from the City of Crystal, New Hope staff was informed that the City of Crystal approved this request subject to a condition that would require execution of an agreement between the Borrower and the City providing for payment in lieu of taxes (see attached Crystal memorandum and resolution). Staff reviewed this matter with the City Manager and he advised that the EDA may want to discuss this issue. Staff has reviewed this request with the Director of Finance and the City Attorney. FUNDING The approval of this resolution has no impact on New Hope's bonding authority or capacity. A'I-FAC H M E NTS · Resolution · Faegre & Benson Correspondence · Opportunity Partners Correspondence · Map · City of Crystal Memorandum/Resolution · Tax Information RESOLUTION NO. RESOLUTION WAIVING NOTICE AND CONSENTING TO THE FINANCING OF A PROJECT BY THE HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY WITHIN THE AREA OF OPERATION OF THE CITY OF NEW HOPE, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, the City of New Hope, Minnesota Economic Development Authority (the "Authority") is an economic development authority created pursuant to Minnesota Statutes, Sections 469.090 through and including 469.108, has the powers of a housing and redevelopment authority under Minnesota Statutes, Sections 469.001 through and including 469.047, as amended (the "Act"), and is authorized operate within the territorial boundaries of the City of New Hope, Minnesota (the "City"); and WHEREAS, the Hennepin County Housing and Redevelopment Authority (the "Hennepin County .HRA") is a housing and redevelopment authority created pursuant to Minnesota Statutes, Section 383B.77, has all of the powers and the duties of a housing and redevelopment authority under the Act, including the authority to issue bonds and loan the proceeds of which for certain projects, and is authorized operate within the territorial boundaries of Hennepin County, Minnesota (the "County"); and WHEREAS, Opportunity Partners, a Minnesota nonprofit corporation (the "Borrower"), is the owner and operator of 17 group homes for the mentally and the physically disabled located primarily within the County, and each group home is separately and individually financed by a taxable or a tax-exempt mortgage loan; and WHEREAS, one of the group homes is within the territorial boundaries of the City and is located at 2705 Ensign Avenue North; and WHEREAS, the Borrower has requested that the Hennepin County HRA issue its tax- exempt revenue bonds and loan the proceeds of such bonds to the Borrower so that the Borrower may consolidate the outstanding mortgage loans into a single loan and to refinance the debt on a tax-exempt basis; NOW, THEREFORE, BE IT RESOLVED COMMISSIONERS OF THE CITY OF NEW HOPE, DEVELOPMENT AUTHORITY AS FOLLOWS: BY THE BOARD OF MINNESOTA ECONOMIC 1. The Authority hereby waives any notice that may have been required by Minnesota Statutes, Section 383B.77, as amended, and hereby acknowledges receipt of notice of the proposal that the Hennepin County HRA finance a project within the area of operation of the Authority. 2. The Authority hereby consents to the Hennepin County HRA's activities within the area of operation of the Authority with respect to the proposed financing. Adopted: ., 2001 Attest: Chair Secretary M1:766352.01 FAEGRE & BENSON Z200 WELLS FARGO CENTER, 90 SOLrl~ SEVENTH STREET MINNEAPOLIS, MINNESOTA 55402-3901 TELEPHONE 612-336-3000 FACSIMILE 612-336-3026 June 25,2001 STEVEN C. LIKES sltke~? l~egre eom 612 706 8057 Mr. Kirk McDonald Community Development Director City of New Hope 4401 Xylon Avenue North New Hope, MN 55428-4843 Re~ Proposed Bond Issuance by the Hennepin County Housing and Redevelopment Authority Dear Mr. McDonald: Faegre & Benson LLP is serving as bond counsel to the Hennepin County Housing and Redevelopment Authority (the "Hennepin County HRA") with respect to a proposed issuance of bonds for the benefit of Opportunity Parmers, a Minnesota nonprofit corporation and a 501(c)(3) organization as described in the Internal Revenue Code of 1986, as amended (the "Company"). The Company presently owns 17 group homes throughout Hennepin County (the "County") that are occupied by persons with physical and/or mental disabilities. The Company originally purchased the group homes with conventional bank financing and secured the various homes with mortgages. The Company now desires to refinance these purchases with the proceeds of certain tax-exempt revenue bonds to be issued by the Hennepin County HRA. Section 383B.77 of the Minnesota Statutes provides that the Hennepin County HRA may exercise all of the powers of a housing and redevelopment authority in an area of operation that includes the area within the territorial boundaries of the County. The statute may also provide (the wording is less than clear on this matter) that before it may participate in a project that lies within a territory governed by a separate municipal HRA, the Hennepin County HRA must notify and obtain the consent of such municipal HRA to its activities within such territory. Enclosed with this letter are (i) the application letter filed with the Hennepin County HRA that outlines the proposed transaction, and (ii) a draft of a resolution to be introduced before and adopted by the City of New Hope, Minnesota Economic Development Authority (the "Authority"). We would request that this resolution be introduced and adopted at the July 23, 2001 meeting of the Authority's Board of Commissioners. Minneapolis Denver Des Moines London Frankfurt Mr. Kirk McDonald June 25, 2001 Page 2 If you should have any questions regarding resolution, the application or the transaction in general, please contact me directly at (612) 766-8057. We appreciate your help with this matter. Very truly yours, SCL:liksc Enclosures CC: Jon Thompson, Opportumty Panners Timothy Trimble, SilverCrest Properties, LLC M 1:766740.01 ~52~' (952) Senior A,4w,i-4_~xagv¢ Manager 1~09 Wa~ ~lv&, S~ 260 ~to~ ~' 5S375 .O!~. orv.~'vy Pzrmers is a =ot-for-profk 501 (¢) 3 ~ti~n that opct-ar~ i~ Hc~cpin Cmmly. We provide czaploym~L r=sid~fiaI a~d pcrscl:~ clevelol~ent stzppo~ ~ help peopl= The ork,-aaizatioa ~z ori!~ally cst~ed ia 1953 ~ ~~ Wor~ by a ~up of p~ who ~u~ ~fl ~m ~d ~1o~: opp~~ l~ ~ s~ ~d ' Two y~,~ ago, wcrl~g i~ parmc~ip, v~il~ ~~ Co~, we ~ ~ pro:~ of elo~g a~h~ ~ ~ ~p~ ~,~ 17 is a ~ ~d w~l~e f~ 105 p~. f~ s~ (1~ ~~. ~ you ~ow, ~ b~ we~ n~ ~ ~ed ~ H=~ b~ ~¢ sold ~ ~e ~ p~c. Br~ B~ ~ wo~ o~ ~ ~s of ~e ~S 06/25/01 MON 09:53 [TX/RI NO 7383] We bare also ~lached a ~ of!he facilities ~cl ~h~ir locations f~ your review. We wo~ld 1L ~o be pla~d on ~ agend~ for yo~ ~p:o~i~i me. eting, cr if app~.~ria~, ~o,,1~ a sp~i~ m~e~mg be l~d soo~r i~ order co r~view and vot~ ~pcr~ ow reque~. I~'yo; ]~v= a~Lv que~io~, pl=aso ccrmac~ me, or Bruce l~*~r, ow Vice l~-icl~ of Finance. your c~sid~'aiou ~:d took ~ward ~o wo'g~g wi~ H~ractrin ~ ~ ~ 06/25/01 ~0N 09:~3 [TX/RX NO 7383] OPPORTUNITY' PARTREI~;, INC. PROPERTY' ]NFOEJI/IATIQN i. B~.2 --'Ezm~. sh,L-,..a.v,,--r-~ 3. 7615 'v';~ .A.','en~ ~ 6_=05 i~, 5610 Golden Valley Road Golden Valiey, MN 17. ! 0~00 - 51 ~ . ~ ' * 3] 05,'25/0! MOW 09:53 [.X,~ NO 733 Opporlunit~ Partners Financ~lg Team Rand Cau.~.~el: SA~v~ P~p:~-6~, LLC Phone:, (952) 922-9547 06/25/01 MON 09:$3 [TX/~ NO 73831 Opl~=rtunity Par'~ecs F~rc~ect Budget - Summary Amount re. quirec~ t~ refinance pmperlies ~ 1-17 .~.cc attached Inctucles any p~epayment 13enalties 3,291.496 Vehi=les per attac~ed list Lease buy, uts = 47.S00 Replacement purchases = 215.400 New purchase = 2.q.l:X30 287.900 Project Sub-t~tal Bon¢l Issue Exl3enses Project Total "3,579.396 71 ,~88 06/25/01 ~ON 09:53 [TX/R.'I NO 7383] .3041 31 ST [NSIGN AVE N AVE N 29TH AVE 2817 2801 ENSIGN , 2746 - 2740 27~2 2717 ~ _ 2724' 271~ "'~,, 2716 ~ 27O8 270,5 ' 2707 g214 Bgo0 SUNNY HOLLOW & PARK Z IlIIIlIIIlIIIIIIIlIiiliiiliiiliIiliiiliiiliiiliiiliiIlIiiliiilI MEMORANDUM TO: FROM: DATE: SUBJECT: Economic Development Authority Patrick A. Peters, Community Development Director July 12, 2001 Consider Resolution Consenting to Project Financing by Hennepin County HRA BACKGROUND Opportunity Partners owns and operates group homes for people with disabilities and other special needs. One of their properties is located in Crystal at 3812 Hampshire Avenue North. The organization has submitted a request to Hennepin County to issue tax-exempt revenue bonds to help refinance its conventional mortgage loans for its 17 homes located within Hennepin County. Minnesota Statutes provide that the Hennepin County HRA may participate in a project within the territory governed by a separate municipal HRA provided notification is given and consent of the activities is obtained from the municipal HRA. Background material is attached for reference. The property owned by Opportunity Partners at 3812 Hampshire Avenue North is exempt from property taxes. As such, staff has added a condition in the attached Resolution that would require execution of an agreement between the Borrower and the City of Crystal providing for payments in lieu of property taxes. RECOMMENDATION Staff recommends that the Crystal Economic Development Authority adopt the attached Resolution waiving notice and consenting to the financing of a project by the Hennepin County HRA. RESOLUTION #2001 - RESOLUTION WAIVING NOTICE AND CONSENTING TO THE FINANCING OF A PROJECT BY THE HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY WITHIN THE AREA OF OPERATION OF THE CITY OF CRYSTAL, MINNESOTA ECONOMIC DEVELOPMENT AUTHORITY WHEREAS, the City of Crystal, Minnesota Economic Development Authority (the "Authority") is an economic development authority created pursuant to Minnesota Statutes, Sections 469.090 through and including 469.108, has the powers of a housing and redevelopment authority under Minnesota Statutes, Sections 469.001 through and including 469.47, as amended (the "Act"), and is authorized to operate within the territorial boundaries of the City of Crystal, Minnesota (the "City"); and WHEREAS, the Hennepin County Housing and Redevelopment Authority (the "Hennepin County HRA") is a housing and redevelopment authority created pursuant to Minnesota Statutes, Section 383B.77, has all of the powers and the duties of a housing and redevelopment authority under the Act, including the authority to issue bonds and loan the proceeds of which for certain projects, and is authorized to operate within the territorial boundaries of Hennepin County, Minnesota (the "County"); and WHEREAS, Opportunity Partners, a Minnesota nonprofit corporation (the "Borrower"), is the owner and operator of 17 group homes for the mental and the physically disabled located primarily within the County, and each group home is separately and individually financed by a taxable or a tax-exempt mortgage loan; and WHEREAS, one of the group homes is within the territorial boundaries of the City and is located at 3812 Hampshire Avenue North; and WHEREAS, the Borrower has requested that the Hennepin County HRA issue its tax- exempt revenue bonds and loan the proceeds of such bonds to the Borrower so that the Borrower may consolidate the outstanding mortgage loans into a single loan and to refinance the debt on at tax-exempt bases; NOW, THEREFORE, BE IT RESOLVED BY THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL, MINNESOTA AS FOLLOWS: The Authority hereby waives any notice that may have been required by Minnesota Statutes, Section 383B.77, as amended, and hereby acknowledges receipt of notice of the proposal that the Hennepin County HRA finance a project within the area of operation of the Authority. The Authority hereby consents to the Hennepin County HRA's activities within the area of operation of the Authority with respect to the proposed financing; provided that such consent is conditioned on execution of an agreement between the Borrower and the City of Crystal providing for payments in lieu of property taxes related to the property at 3812 Hampshire Avenue North, in a form and with terms that are reasonably acceptable to the City and the Authority. Dated this 17th day of July, 2001. ATTEST: Secretary President Hennepin County, MN Property Information Search Result (The properO' informati-~o~ ~a;a'b~s; ts updated at the beginmng of each Parcel Data for Taxes Payable 2001 Property ID Address Addition Name HOUSE or BUILDING it: 2705 j STREET NAME: (at least first 3 characters) Ensign Ave N ] UNIT # (if applicable) I Search I Clear 20 M records per page Construction Year: 1972 Owner Name: Taxpayer Name & Address: Property ID: 19-118-21 34 0019 v,e..v x~ar j Property Address: 2705 ENSIGN AVE N Municipality Name: NEW HOPE School Dist: 281 Watershed: 0 Sewer Dist: 01 Parcel Size: E76X132X76X138 OPPORTUNITY PARTNERS INC OPPORTUNITY PARTNERS INC 5500 OPPORTUNITY CT MINNETONKA MN 55343 Pi.ly'l~efl[ Ocbons .~ MOst Current Sales Information Sales prices are reported as listed on the Certificate of Real Estate Value and are not warranted to represent arms-length transactions. Sale Date: April, 1999 Sale Price: $164,900 Transaction Type: Sale Excluded from Assessment Analysis Lot: 018 Block: 001 Metes & Bounds: Tax Parcel Description Addition Name: WEST OAK TERRACE Value and Tax Summary for Taxes Payable 2001 Values Established by Assessor as of January 2, 2000 Estimated Market Value: Limited Market Value: Taxable Market Value: Total Improvement Amount: Total Net Tax: Total Special Assessments: Solid Waste Fee: Total Tax: Home Property Information Detail for Taxes Payable 2001 Values Established by Assessor as of January 2, 2000 Values: Land Market Building Market Machinery Market Land Limited Building Limited Qualifying Improvements Property Type Homestead Status Relative Homestead Agricultural Exempt Status Total Market: Total Limited: Classifications: RESIDENTIAL NON-HOMESTEAD EXEMPT Records 1 - 1 of total 1 2526 Questions or problems with this database search should be directed to Don.Kopel(~,co.hen nepin mn.us Hennepin County is providing this information as a public service. Please send comments on our Web Site to Henn.Net~,co.hennepin.mn.us or use our Feedback Form ~ Services Taxpayer Set,, =es, .Assessor's De2t. .~.qa~r Search Copyright © 1998 Hennepin County