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072798 EDA
Official File Copy CITY OF NEW HOPE EDA AGENDA EDA Regular Meeting #4 July 27, 1998 Agenda #4 President W. Peter Enck Commissioner Sharon Cassen Commissioner Don Collier Commissioner Pat la Vine Norby Commissioner Gerald Otten 1. Call to Order 2. Roll Call 3. Approval of Minutes of June 22, 1998 4. Resolution Approving 1998 Amendment to Master Modification to Redevelopment Plans and Tax Increment Financing Plans and Requesting the Approval of the City Council · 5. Discussion Regarding Potential Multi-Family Rehabilitation Project at Regent Apartments, 7136 60th Avenue, 6017 Louisiana Avenue, and 7124 Lombardy Lane 6. Discussion Regarding Development Options for City-Owned Property at 9200 49th Avenue North (improvement Project No. 597) 7. Resolution Approving Initial Agreement Between the Minneapolis Public Housing Authority and the New Hope Economic Development Authority for the PPL/Bass Lake Townhomes Project at 7300-7332 Bass Lake Road (Improvement Project No. 614) 8. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes June 22, 1998 Meeting #3 CALL TO ORDER President Pro Tem Otten called the meeting of the Economic Development Authority to order at 8:17 p.m. ROLL CALL Present: Cassen, Norby, Otten Absent: Enck, Collier Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Henry, Clancy, Schuster APPROVE MINUTES Motion was made by Commissioner Norby, seconded by Commissioner Cassen, to approve the EDA minutes of June 8, 1998. Voting in favor: Cassen, Norby, Otten; Abstained: None; Absent: Enck, Collier. Motion carried. IMP. PROJECT614 President Pro tern Otten introduced for discussion Item 4, Resolution Item 4 Approving Cooperative Agreement Between the Minneapolis Public Housing Authority and the New Hope Economic Development Authority and the City of New Hope Regarding PPL/Bass Lake Road Townhomes Project at 7300-7332 Bass Lake Road (Improvement Project No. 614). Mr. Donahue, City Manager, explained that the cooperation agreement is necessary to permit PPL to obtain $1,256,000 in funding from the MHOP program for the Bass Lake Road project. He noted that the School District is agreeable to selling the property subject to resolving a few details, and it appears the project is proceeding on schedule. EDA RESOLUTION Commissioner Norby introduced the following resolution and moved its 98-05 adoption: "RESOLUTION APPROVING COOPERATIVE AGREEMENT Item 4 BETWEEN THE MINNEAPOLIS PUBLIC HOUSING AUTHORITY AND THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY AND THE CITY OF NEW HOPE REGARDING PPL/BASS LAKE ROAD TOWNHOMES PROJECT AT 7300-7332 BASS LAKE ROAD (IMPROVEMENT PROJECT NO. 614)". 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:. Cassen, Norby, Otten; and the following voted against the same: None; Abstained: None; Absent: Enck, Collier; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. ADJOURNMENT Motion was made by Commissioner Cassen, seconded by Commissioner Norby, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:20 p.m. Respectfully submitted, Valefie Leone city Clerk New Hope EDA June 22, 1998 Page I EDA REQUEST FOR ACTION Originating Department Approved for ~e~a ~da ~Uon Communi~ Development July 27, 1998 EDA Kirk McDonald ~ Item No, ~: Director ~~/~ 4 RESOLUTION APPROVING 1998 AMENDMENT TO MASTER MODIFICATION TO REDEVELOPMENT P~NS AND T~ INCREMENT FINANCING P~NS AND REQUESTING THE APPROVAL OF THE CI~ COUNCIL The aEached resolution states that the New Hope E~nomic Development Authori~ approves the "Master Modification" to the Redevelopment and Tax Increment Financing Plans and requests the approval of the Ci~ Council. This resolution should be adopted prior to the Ci~ Council public hearing and prior to the adoption of the Council resolution. The resolution states that the modification se~ices the original goals and purposes of the ci~ and H~ by redeveloping pmpe~ in the Ci~ in order to prevent or reduce blight, blighting factors and the ~uses of blight by providing public facilities which will be of ~nefit to all residents of the Ci~. The '1998 Amendmeng authorizes the expenditure of ~ increment revenues derived from the Tax Increment Districts to pay a podion of the costs for the PPL Housing Redevelopment Project on Bass Lake Road and for recreational ~cilifies at Coo~r High Sch~l, JUL-22-98 ~D 11:38 F~ NO, 4255887 P, O4/tl Commissioner introduced the following resolution and moved l~s adoption: EDA RF. SOLt triON NO. RE.~OI.UTION APPROVING 1995 AMBND~ TO MASTER MODIFICATION TO REDEVELOPMENT PLANS AND TAX INCRi~M]ffNT FIN~C~G PLANS AND REQUF_,STiN(} ~ APPROVAL OF THE CITY COUNCIL B//IT RESOLVED, by the New Hope Economic Development Authority (the "EDA=), as follows: 1. Pro. posed Amendrn~t, 'l'he Housing and Redevelol)ment Authority in am/far the City of New Hopa, M;-,~sota (the 5tEA~) has approved s/x rcdc~lopmeat plans, as defined in M. inneso~a Statutes, Section 469.002, subdivision 16, desigr~t,~d as Redevelopment Plan P~evelopm~nt Plan 81-I, Rc&welopmcnt Plan 82-I, ttrdevdopment Plan 8~-1, Redevelopm~ Plm~ 85-2 mid Redevelopment Plan ~.1 (the 'Redeveloromm~ Phns'), and rsdzvelopmont. projects to be und~ak~u pursua~ ~er~m, as defined in Mlnnesora Statutes, Section 469.002, subdivision !4 (the "Redevelopment Projects'), and that in order to finance the public redcvclopmvnt costs to be incurred by the lIRA in colmection with thc Redevelopment p]l~,., and the Redevelopment Projects, the lIRA has al:proved tax increment ~i-,,.wix~ plans, pu.,mmnt to ~lle provisions of M!-nesota Statutes. Section 469.175 (the 'Financinll pm..,), which establish tax increment financing districts, as dcfincd ia Minnc~ota Statutes, Section 469.174, subdivision 9, which are designated by Henncpin County ss Tax Increment Financing Districts Nos. 1601, 1602, 1603, 1604, ! 60~, 1606, 1607 and 1608 (the 'Districts"). Putmmnt to Mi-ncsota Statutes, Section ~t69.094. subdivision 2. the City has tm-fferred control of tho P.~lcvclopmeat Plans, the R. ed~clopmcnt ProJccL% ~e Financing pl~ and the Districts from the HRA to the FDA. On 3uly 25, 1994, the EDA approved an amcadmcat to the Rcdcvdopmcat Plans, thc Redevelopment Projects and the Fi,z.ei.o_ Plan.q which is entitled 'Master ~odificatlon to the Redevelopmcnt Planz and th~ Tax la.tomcat Financing pb,,._- (file "1994 lVlaster Modification') to combine tim are~q ~bject to the Redevelopment PSas and to expand tim area .s?,jcct to P~d~velopmeat Plans and to authorize the expenditut~ of tax increment revenue deri~ed from the Districts to pay public redevelopment costs in the additional arcs made subjcct to the Redev~opm~t pm._, by the t994 Mastcr Modification and other public improvement costs. On October 9, 199~. tho £DA and City appm~ additional amcndmcnls ~o the Redevelopment Phms, the Kedevelopment Projects and the Firmncin~ Plans entitled '1995 Amendment to Master Modiflc~on to Redevelopment Plans and Tax Inc. rcmen~ Financing Plans' ("1995 Amendments to Master Nlo,t~_ca~ _,)n'). Oa l:ebruary 24, 1997, the EDA sad City ~l~oved additional amendments $o the Itedevelopment Plans. the Redevelopment Projects and Financing Plans entitled "1997 Amm~dment to Master Modification to Redevelopmmt Plans and Tax Increment Financing Plans~ (the '1997-I Amendments to ~ Modification'). On April 27, 1997, the · EDA.and City at,pm,ed addit{onal ameadmcats to the Redcv, dopment Plans, ltedcvclopmont Projects. and Financing PI---~ entitled "1997-2 Amendment to Master Modification to JUL-22-98 ~D 11:39 F~ NO, 4255887 P, 05/11 Redevelopment Plans and Tax Increment Financing Plans' (the ~ 1997-2 Amcndmcnta to lV~ter Modification"). Both thc 1995 Amendments to Master Modification and the 1997-1 Amendments to Master Modification (but not the 1997-2 Amcndmcnt,s to Ma~er Modification) includcd additional property iu ac area subject to the Redevelopment Plans and each of the 1995 Amendments to Master Modification, the 1997-1 Amendments to Master Modification and the 1997-2 Amendments to Master Modification authorized additional expenditures of tax increment revenue derived from the Distriots. The 1994 Master Modification, the 1995 Amendments to Master Modification, the 1997-I Amendments to Master Motlii%ation and the I99%2 Amendments to Master Meditation ar~ hcnsin together mi'erred to as the ~iaster Modification'. It is now been proposed that the £DA approve an additional amendment to thc Rcde~v¢lopment Plsn._,, and tho Financing Plans which is entitled "1998 Amendment to Master Modificatibn to Rexievelopment Plans and Tax Increment Fi,~s~ial; Pls,~-~* (thc '1998 Amendment') to expand the area subject to the Redevelopment Plans and to authorize additional expenditures of tax increment revenue to (i) pay red~clopmcnt costs in th~ area subject to the R~evelopment Plans, including, but not limited to, the sdditional sma made subject to the Redevelopment Plans by tho 1998 Amendments, anti (ii) pay admlntstm~ve expenses of tho L~DA and the City. 2. _AppKOvl~t of 1992 Amendment The 1998 Amendment has bc~ra p~ntcd to this Board and is ordered placed on file in the office of the Executive Director of the F. DA, and the 1998 Amendment is hereby approved. Thc 1998 Amendmcat further s:rv~ the original goals and purpose~ of tho City and HRA in approving the Redevelopment Plsas, the Redevelopment Projects and tho Financing Plans, by md~elopinl~ property in the City in order to prevent .or reduce blight, blighting fsctors and the e~uses of blight and by providing faoilitios availabl¢ for uso by th~ publio wMch will be of benefit to all residents of the City, including those residing in the sres subject, to the Redevelopment Plar~. 3. th, c.~ntation to Ci_ty Cour~il. Th~ 1998 Amendment hereby approved shall be pre, hied to the City Council for a public hesrin8 thereon pursusnt to Minnesota Statutes, . $ootion 469.029, ~:~iivision 6 and .%ction 469.17:~, sulxllvision 4. Dated th~ 2?th day of Suly, 1998, ~ve DiOr ..... -2- JUL-22-98 ~D 11:38 F~< NO, 425B887 P.~3/11, CERTIFICATE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY I, the undersigned being the duly qualifi~l B~cutiv¢ Director of thc New Hope Bconomic Development Authority, hereby attest and certi~ that: I. As such officer, I am thc reco~lin$ office~ of the New Hope Economic Development Authority and have th~ lc~'ai cugody of dle original record from which the attached resolution was tr~n~u-ibed. · 2. I have carefi~ly compared the attachcd rc.solution with ~hc original record of thc mectlng aI which die rcsolutlon was acted upon 3. I find.thc attached resolution to be it tree, correot and complete oopy o£.th~ orioinal: EDA RF, SOLUTION NO. 98-~. ~ P,~olulion Approving 1998 Amendment to Master Mt'~lification to Redevelopmcnt Plans v~! Tax Incrcmc~ Fimmcing Plans and Requesti~ thc Approval of the C~ty Cotmcil ~. I fiuther certify that the a~,mative vote on said rcsolution was ayes, ____ nayc~, ~nd .... absent]abstention. ~. Said meetin~ was duly held. purstmnt to call ~ut notice thereof, as required by law, and a quorum was prcscat. WITN~8 m~ hand officially ~ such Bxecutive Director this : day of JUL-23-88 ~U 09:23 F~X NO, 425586? · P, 02/03 JENSEN SWANSON & SONDRALL, P.A. 8~25 k~m~m~Ol~ ~~ ~z. 201 ]moo~LYS P~tW, M~w.~rx $~143.1~)~ 0~(33v~ July 21, 1998 Kirk HcOonald City Of New HODe 4401Xylon Avenue North New Hope, MN 55428 RE: Resolutions Approving 1998 To Master Mod{fi=a%ion To RmdeYmlop~en% Plane And Tax Znoremen= Financing Plans And Mak(ng F{ndinge W~th Reeoeot Thereto Our File= 99.11200 Deer Kirk: and ~he ac[ual 1998Aaendmen~ for considera[~on a~ ~he July 27, 19~e city Coun©~l and Economic Developmen% Authority The 1998 ~mendment ~rovtdea for the follow, n9 th~nge OCOU r: 1. th~ ifl~ue~on of oroDert¥ at ?~00 and 73~2 L&ke No&d ~fld ~he aou~h 100 ~ee~ of 73~3 58~h Avenue North in the redsvelopment plan area ~or TZF fund uae to asatet in lawful Pedevelo~ment. Spe©{f~cally, {re {nalue{on {n ~he PPL MHOP houetng proSec~. 2.'author{zat{on for ~he EDAl~OeXl)end %he 281 5chool O{etr{=% ~o Gone%rue% a pya sddJ~ion at Cooper Hlgh $choo3 on condt[ion [he gym on even(n~e end weekendm. The 1998 Amendment al=o sate forth the Ctty'e S~atemen~ o~ Need And Obje~%{¥ee. ar{ally, ~h~m {noludem & need for add{t~onal moderately prl~ed houeln9 wl~ln C~e ¢1~y, elimination of b~ghl~ed Orooer%y and ~he daveloOman~ of JULo23-98 THU 09:23 F~ NO. 4255887 P. 03/03 K~rk McDonald July 21, 1998 Page 2. more recreational facilities tn :he City. ~t also expl&tns the nature of the Tax Zncremen: expenditures, eats forth a budge: and m&kee other f~nd~nge ~nd~cat~ng a need ~or ~he Al~tendmen~. Since [he EDA is requesting the City Council ~o coneideP and pass on ~heee amendments a~ ~he July 2?Ih publlc heartng the EDA resolu:~on should be passe~ first. Therefore, when this matter is reached on the Council agenda the Council meeting should be ~uapended and the EDA meeting convened ~o consider EDA resolution ~tra~. The COunci~ mee~1ng should [hen Feconve~ed, Ihs oub~c hearing conducted ~d ~esolu~on considered snd adopted. Please con~ac~ me ~ you have any quee[~on~ matter. very %ru~y yourm, S~ven A. ~ond~all z:sas:[1 cc: ValerJe Leone JUL-22-98 ~ED 11:39 F~: NO. 4255887 P. 08/ll ._ 1998 A~MENT TO MASTER MODIFICATION TO P,.EDEVE'LOPMENT PLANS AND TAX INCRE~ FINANCINGr PLANS NEW HOPE ECONOMIC DEVELOP~ AUTHORITY MASTER MODIFICATION - APPROVED JULY 25, 1995 AMENDMENT - APPROV]-2:) OCTOBF~ 9, 1995 1997 ~MENT-APPROVED FEBRUARY 24, I997 1997-2 ~ME:NT - APPRO¥'ED APRIL 25, 1997 1998 AMENDMENT - APPROVED .~JI,Y 27, 19~8 JUL-22-98 WED 11:39 F~X NO. 4255887 P,~7/11 _ i. rNTROOUc'UON Tho Comn',i_~sioners of the Housin8 and Redevelopment Authority in and for City of New Hope, Minnesota (the "HRA') and thc City of N~w Hope, Minnesota (the 'City'), have previously approved six Redevelopmcn! Plans designated as Redevelopment Plan 80-2, Redevelopment Plan 8 l- l, Redevelopment Plan 82-1, Re, development Plan 8§-1, Redevelopment Plan 85-2 and Redevelopment Plan 86-1 (the 'Redevelopment Plans'), and have approved redevelopment projects (th~ aRed~velopment Projects') to be ulld~ ptli'suant thereto, and in order to finance the public redevelopment costs to be/nam'ed by thc City and thc HRA in connection with th= Redevelopment Plans and the Redevelopment Projects, the I-IRA and the City have approved various tax increment f'mancin$ plans (tbe 'iinan¢inI Plans') wh/¢h establish tax increment financing districts designated by Hennepin County as Distr/ots 16/)1, 1602, 1603, 1604, 1605, I60/;, 1607 and 1608 {the ~Districts'). Pursuant to Minnesota Statutes, Section 469.094, subdivision 2. the City has transferred control of the P,.eclevelopment Plans, the Redevelopment Projects, the Financing Plans and the Districts from the HRA, to the New Hope Economic Development Authority (the "EDA'). In order to authorize the City and lEDA to undcrlake ccrlaia aclivities designed remove,, preverll and reduce bight, blightini factors and the causes of blight/n the City and provide fiu.'ilities intended to servc all 'residcats of tim City, on Suly 25, 1994 the EDA and City appwved amendments to the Redevelopment Plans, the Redevelopment Projects and thc Fiv~,,,cing Plans entitled 'Master Modification to Redevelopment Plan and Tax Increment Financing Plans' (the =1994 Master Modification') which (i) combined tho ar~as subject to the Redcv~Iopme, nt Plans, (ii) irlclllded addl~tonsl_ l~pe~ ill the area subject te the Redevelopment P]a~s and (ii/) authorhzd tax inorement rev~ua dc'rived from aay o£ th~ Dish-ica to be utilized in any area subject to the Redevelopment Plans. On October 9, 1995, the I/DA and City approvcd additional *mendments to tho Rcd~velopment Plans, the Redevelopment Projects and the Financini Plans entitled '1995 Amtmdment to Master Modification to Rede~l~ent Plm~s and Tax Increm~t Finaacin~ Plans' (the "1995 Amendments to Master Modification'). On February 24. 199q, the N. DA and City approved additional amcadmeats to the Roievelopment 'Plans, the Redevelopment Projects and the ~illanc/nl~ Plaas entitled =1997 Amendment to Ms. ster Modifio~on to Redevelopment Plaaa and Tax Increment F~ Plans' (the '1997 Ameadments to Ma~ Modification'). On April iii, 199'1, the HDA and City approved add/tion,~l amendments to the Redevclopram~t Plans, the Redevelopment Projects and the Ftn~m~_.ill~ PhlaS ent/fled ~1 qg']-:l Amendments to Master Modification to Rexlevelopment and Tax ~ Fimmalng Plans' (the '1997-2 Amendments to Master Modification'). Both the I995 Amendments to Master Modification and 1907 Amcndm~ts to Master Modification includ~ addllions~ prope~ in the area subject to the Redevelopment Plans, and the 1995 Amendments to Master Mod/fication~ th~ 19~7 Ame. nda~m~ to ~ Modi_fication and the 1997-2 Amendments to Mast~ Modification each authorized sdditionsl expeaditures of tax inoremeat rovcau~ derived fwm th~ District~. The 1994 Master Modifi~on, the 1995 Amendments to Msster Modificatio,~, the 1~ Amendments to Ma.st= MoCtficafion and the 1997-:2 Am~dments to Mas~ Modification am hcrein togedm' re~red to as the =Master JUL-22-98 14ED ! 1:40 F~( NO, 4255867 P, 08/1 The I~DA has identified ccrtain propcrty in th~ City llot prescr~tly included in shy of dte areas Subject ~o thc Redevclopmcnt Plans which the ]~DA believes either pr~ently contains blight or blighting factors or which ~ of age, obsok~.~nce, market conditions and other factors is suspectable to blighting conditions, or which could bo used for additional recreational fhoilitioa to ~ r~idcnts of thc Cily. Such property consists of the property located at 7300 and 7332 gass Lake l~oad in th~ City and tho south 100 f~:t ofproperty located at 7323 58" Av~nu~ North (PID #05 1 Ii 2131 0005) (together, the 'PPL Proje~:t Property'), and Cooper ?~nior High School located at g230 47~ Avcnu~ North (thc 'Cooper High School Property') (~¢ PPL Project Property and Cooper High ,gchool Property are her~in together e, allcd the 'Additional Prol:mrty'). It is proposod that thc EDA acquire thc PPL Project Property end c~rtain adjacent property which is already included in the area subject to th~ Rexlcv¢lopme. nt Plar~ and s~ll such property to Proj~L ror Pride in Living, a Minnesota nonprofit corporation ('PPL'), which proImSeS to redevelop such property by thc construction of ~t 34-unit rental townhouse d~velopment (the 'PPL Housing Project'). h is proposed that the EDA pay a portion of thc cost of a g~ma.sium addition (thc 'Recreational Faoiliti~') to be t~°r~'truote, d lo Cooper High School by/ndependent School District No. 2Ili on the Cooper High School Property. such lgymaa~ium addition will be available for use by residents of' the City in tho evenings and on weekends and will provide needed recreational Faoilitiea for thc City. By tho Ma.s~ Modification the Commissioners of the I;. _hA amended the Redevelopment pI~n_~ to combine the areas subject to the R~-velopment pls,~_~, and include additional propc~ in the arr. a sublet to rig R~¢velopmcnt Plans and amended th~ Finanela§ Plans to authorize the ~ture of tax increment r~venu~ dcriv~l from any of the Districts for publio r~Igv¢Iopment costs incurred by tl~ City or Et)A in connection with the development and redevelopment of any property in the area subj~t to th~ Rcdcvelopment Plaits alld to pay costs of a community center to be located at Community Center Park. By this 199g Amendment to thc Master Modification th~ Collamlsslorlgla of the EDA includes the Additional PrOlgl~ ia the ar~a subject to the Re.d~wlopment Plans and smeads the Fin~,,oing Plains to author~ thc additional exlgaditur~ of tax inore~en~ r6venues derived from ally Of the Districts for Imbll¢ redevelopment costs incurred by the City or HDA in e. onnootion with th~ dovclopm~:nt and ~lopment of the PPL Housing Project and the Recre~onal Facilities. This 199g Amendment to th~ Master Modification doas ~ inoludo th~ Additional Pmpony in any of'th~ Districts. 'fhis 1995 Amendment to the Master Modification is approved by tl~ Commis~ioner~ of tho £DA and the City pursuant lo Mira,. _,-~o~ ~tatul~-~, Chapler 469.029, subdivision 6, end Mhan~m Statutes, Section 469.175, subdivision ~. The development of the PPL Housin8 Project will aid in the redevcl~t of the property in the at~ subject to lhe Redevelopment Plato; in a manner beneficial to the resideuts of the City and co~sistmxt with the objectives of tim F, DA as stawd iu Redeveloptneat Plans and will aid in the consmmtioa of rental housing facilities in the City for familim of low and moderate income, all of which will meet the needs specified iu Redevelopment Plans. The constructiou of the Recreational Facilities will provide needed recreational facilities fo~ reaideula of the City. m. ADD~ON,~,L EXPENDrruRE oF T~X ~o~ ~~ of~ ~t ~~ by ~i~ 1998 ~~t ~ ~ M~ M~fi~ of~ R~elo~ PI~ ~ T~ In~ F~c~g P~$ ~l~e ~ ~ci~ ~ ~ siW d~elo~ ~d ~~~ of~ ~o~ Facilities ~d ~ ~on ~ ~ ~A of~l or a ~ of~ ~~ on w~ ~ P~ ~j~ ~11 ~ 1~ ~d ~e ~o~fion ~ ~i~!on of ~sfl~ bu~d~ 1~ ~n ~d ~ ~elop~t ~ o~r p~Hc ~elo~ ~ ~ ~ ~ ~~t rel~ W ~e ~~fion of~ PPL Ho~ ~j~ ~e ~ ~on of this 1998 ~~ ~ ~ ~ Y~ifi~ ~~ ~ ~t~ of~ ~~ it.~ not obH~m ~e City or ~A to ~g ~ ~ ~1~ of ~e PPL Ho~g ~j~t or ~e ~~on of~ Rg~o~ F~. ~ I~ 8~~ ~~ on ~of~ EDA ~ ~ ~ ~ysis of ~ ~ow of~ D~ ~ ~ ~ 2~. A ~py of~ ~ow ~s is ~ iu~ ~ue ~v~ ~m ~ ~ ~t ~ag d~ d~i~t~ ~ A~~) ~ ~ of obli~ p~io~ly ~ ~ ~ Ci~ ~d ~ ~A R ~ not ~~ ~ ~ ~ ~ ~ ~ ~ ~~t ~ue g~t~ by ~ D~ d~g ~e ~ ~ by ~ ~hflow '~e ~~ ~ ~ of~ ~~ F~ili~ ~ $2~,~. ~ u~ of F~fi~ ~ ~ ~ follo~: -3- JUL-22-98 CD 11:41 F~X NO, 4255867 P, 10/11 _ Sim D%~lopment $ SO, O00 Construction 1,900,000 Fees, Testing, Survey, Permim 198,000 Contingco~'7 $2,300,000 The e, stimate, d additional exl~nditure of the tax incr~m=ut r~luted to the acquisition and d~velopme, ut of the PPL Housing Pwjeot is not to exceed $1,400,000. The use of up to $1,400.000 of tax increment derived from thc Districts to pay public re. development costs r~l~ed to the PPL Housing Pro. lect is hereby authorized. Costs of the PPL Housing Project to paid with tax increment will consist of land acquisition cosl~ and site development 'rile estimated costs of the PPL Housing Project are as follows: Land Acquisition and R=locatiou $1,702,000 · Site Work 454,6fi$ Construction Devolopmeat and Professional Fees" 603,284 Financial Cosls and Reserves 142.904 $5,484,864 In addition to Ihe fo~.'going costs, tl~ us~ of tax inclement to pay admi~strative costs of the EDA related to the Redevelopment Plans, Redevelol, m~ut Proj~-ts and Finanoing Plans in th~ amount of up to $$00,000 is hereby authorized. Costs authorized hereby to bm paid with tax incrernent revenues of the Districts may be paid directly from tax increment darived from tho Distri~s, or may bu paid indirectly from tax inc. rcment derived ih)m the Districts, by the payment of debt servio~ on a loan or loans made by the City to ihs FZDA or by tl~ EDA to finan~ such ~ost. Any such loan made by the City or EDA will be repaid, with ~ from the tax ina~uent derlvexl from the Distriots. Oth~ th,,,_ the loan or 1o,,--,. from tho City or th~ EDA, it is not existed that ally obligations will be issued by the City or BDA ~o finance such c~sts. IV. glSCA]L AN]) ECONOMIC IMI~LICATION$ Ol{' ADDITIONAL It is estlmsmed fiscal and ectmomic impHe, atious ofth~ additional ~-pondiutms of tax inoremcnt r~nu~ d~riwd from tbe Districts authorized by this 1998 Amendment to the ~ Modification will be ss follows: The local l~ove, mm~nlal units oth~ than thc City which levy ad valore~ prOl:~'t~ taxes in the area where the Districts sre Ioc~led ar~ Ind~ndeut $ohool JUL-22-98 NED 11:41 FAX NO. 425!5887 P.,11/11, Di.~ric~ No. 281, Hennepin County, ~e ~ ~e ~ ~ ~om m~~ ~ ~ ~e ~~ent ~d d~g ~e ~~on of ~c D~c~, ~ a ~t of ~e R~cvclo~t ~j~a ~d ~e ~pl~on of~e ~ev~mmt P~ ~d ~e wo~d ~ a~le for ~on by ~e 1~ gov~~ ~. How~, ~ a ~t of ~s V. DE~~A~ONS ~ ORIG~AL ~AN~G P~N ~. ADD~ON~ A~~~ TO PLAN BA~$ ~AKE TOWNHOME~ DEVELOPMENT APPLICATION ].0 Pap ~. of 4, ].'. Pnp 3 of 4 Memorandum TO: Doug Sandstad, Building Official Kevin McGinty, New Hope Fire Chief Randy Kur12:, Fire Inspector Mark Hanson, City Engineer FROIII~ Kirk McDonald, Director of Community Development DATE: June 5, 1998 8UBJECT: Proposed Gyms at Cooper High School Enclosed for your review and comment please find "very preliminary' concep~ plans for adding gym space at Cooper High School. VV~ met with School District offlcial~ earlier thil w~k and they presented these two plan options and budgeto. The contac~ to date have been primarily with the Park & Rec Department to determine community recreational need~. They are now approaching the City rega~ling the City contributing some TIF financing to the project. They completed a similar project in Plymouth early last year and the City of Plymouth contributed ~ financing. Option 1 is a bere-bone~ ~ con~i~ting of al;i;toximately 18,700 of ~ the divider comdor between the building and the gyms. The intent would be to have a community entrance on the west side so that the pul:die could have acceM to the gymt in ~ evanin~ and on weekan~ and the gyms would Option 2 is approximately 24,000 of and includ~ a wa~ing path around the baakett~ll courts. Option 2 could also include four praotk~ vol~y'oall court. I think ette of the primary reasor~ they are putting in the corridor separation he~ to de ~ the ,now load building cole 11~ (Doug?). Another major not acceptable. They ~ ~ need to remodel and have ~ to ~ reatmmn~ in the existing acce~ road on the rletth tide al~ the emergencY vehicle ~ ~ ~ be neceMary (Kevin & Randy?). Tttey ~ that they m:x~:l be Ioaing 22 Parking ,l~ace~ that am currently uted for faculty. I believe them i~ an ~ ,tiwm fewer th~ would have to be mleceted (Mark?). They did indicate to us that ~'inklirtg ~ ~ ~ ~ ~ i~ I~ t~ th~ ~ of 1~ arid the gyms also would be sprinkled. T'ne ~ ill ~ budg~ ~ tptinkler~ in the ne~ ~ Their general timeline is for plan approval th~ wlnlat, blddlng in the ~;xing. an;I ~ in the .ummor of 1999. I know theee are very skatehy ~ Ix~ would a~k that you give them a cumory review. Dan and I would a~ your c~nmen~ m ~oen a~ i~:~tible, a~ the ~ will be alienating their funding contribution in the near futtal. Any feedback you could give u~ ul~ fro~ ~ be helpful. Thanks for your cooperation. cc: Dan Donahue, City Manager Shari French, Director of Park & Recreation Jeannine Clancy. Director of Publk: Work~ Attachment~: Plar~ and Budget ti _ / ' EDA REQUF~T FOR ACTION Originating Department Approved for Agenda Agenda Section Community July 27, 1998 EDA Development Kirk McDonald ~'~ Item No. By: Management Assistant By:.~_J 5 DISCUSSION REGARDING POTENTIAL MULTI-FAMILY REHABILITATION PROJECT AT REGENT APARTMENTS, 7136 60TM AVENUE, 6017 LOUISIANA AVENUE, AND 7124 LOMBARDY LANE The owners of Regent Apartments have met with City staff and are interested in possible City EDA financial assistance for the potential rehabilitation cf the three building, 36-unit multi-family housing complex which they own, located at 7136 60~h Avenue, 6017 Louisiana Avenue, and 7124 Lombardy Lane. In 1993, the EDA adopted a resolution approving multi-family housing policies, which stated, on a case by case basis, that the City would consider utilizing public funds in the form of a loan to leverage private funds to assist with the rehabilitation of multi-family structures in the City. The resolution establishing the policy is attached, funding pdority is given to basic needs as opposed to amenities, and normally a 50~50 matching of funds is required for eligible projects. One project has been completed under this policy. New Hope Apartments were renovated in 1994-95. The improvements the owners discussed with staff and the City Attorney included replacement or repairs of windows, repair of parking lot, roof replacement, installation of perimeter drain tile systems, potential repair or replacement of inoperable out~door swimming pool, some new appliances, intedor work including hallway carpet and carpet replacement in some units, replacement of some kitchen cabinets and floors, repair of leaking air conditioning units, and adding landscaping to the property. The City Inspectors have confirmed that the buildings are in need of rehabilitation. Staff also discussed with the owners the possibility of adding garages to the site (there are currently seven garages for 36 units) and discussed improved property management. The total cost of the improvements without garages is estimated at $180,000 - $200,000. The cost of the garages is estimated at $225,000. The owners are requesting a loan and consideration of a grant for a portion of the project. Staff did indicate to the owners that this program has not involved grants in the past. Staff is inquiring if the EDA is interested in pursuing a potential project at this site on a preliminary basis and authorize a review of the owners' financial statements by the City's outside financial consultant. The analysis would determine if the partnership has the resources to pay back the loan, and the cost of said analysis would be paid for by the owners of the complex. MOTIONBY ~/]~ SECOND BY ~ Review: Administra~on: Finance: RFA-O01 Request For Action Page 2 After that step was completed, staff would work with the owners to establish a firm list of improverdents, the owners would solicit bids, the City Attorney would prepare the necessary agreements, and the final documents would be submitted to the EDA for approval. Staff recommends that the EDA authorize a financial analysis, the cost of which is to be paid by the property owners, to determine if a multi-family rehab project at this site is feasible. Edward E. Silberman 1421 East Wayzata Boulevard Suite 210 Wayzata, M~. 55391 473-2521 July 20, 1998 Susan Henry Community Development Specialist City of New Hope By Fax: 531-5136 4401 Xylon Avenue Noz~h New Hope, Mn. 55428-4898 Re: Regent Apar~ments 6017 Louisiana, 7136 60~hAvenue No. and 7124 Lom~ardy Lane, New Hope, Mn. Dear Sue: ConsiStent with our meeting on today's ~ate, I have listed the proposed improvements to the above referenced 12 unit apartment buildings which I believe ars necessary to bring the buildingS, the individual apaz~ments therein and landscaping into a state of repair, which is acceptable to the City of New Hope. 1. Windows- Replace glass where seals have broken. Replace window hardware and screens ae needed. 2. Waterproofing- Install drain tile in basement units of all three buildings to alleviate existing water problems. 3. Appliances- Replace existing worn out appliances and air conditioners, as needed 4. Carpeting- Replace hallway carpeting in each building, and in individual units ae needed. 5. Flooring- Replace Kitchen flooring in apartments, as needed. ~. Par~ing Lot- Tear out and replace or overlay the existing par~ing lo~s. 7. Sldewalk~- Replace and or repair existing sidewalks which have cracked. 8. POol- Tear ou~ and fill in existing swimming pool. 9. Roofs- Repair or replace roofs as needed. 10.Window Air Units- RepairA/C sleeves =o avoid water seepage into walls. 11. Sheetrock- Repair water stained sheetrock as needed. 12. Landscaping- Plant trees and other shrubs to enhance appeal of the proper~y for the Tenant's and neighborhood. 13. Garages- Construct 29 garages on the property so ~hat each apartment u~it has a garage. 14. Other- Install garbage disposal units and dishwashers in each unit. I have not made an inspection of ea=h individual unit, nor have I obtained estimates for any of the work, however I would estimate ~_hat the total cost of the items listed above not including item 12 would be approximately $180,000.00 to $200,000.00. The cos= of the garages would be approximately $225,000.00. I~ ~/~e city is willing to pay for the cos= of the repairs and improvements by a grant, the Owner's are willing to pay the cost of constructing garages on the property as set forth in item 13. The grant may contain .conditions of ownership, a mutually agreeable annual maximum rental rats Increase based upon =he cost of living, and may include other mutually agreeable conditions which eafeguard the Cl~y of New Hope's investment. Please let me know your ~houghts on this matter as soon as possible. The Ownerfs would like to begin the restoration of the complex as soon as possible. cc Larry ~ill ~,~21~ 16:54 .TS~,A*FTOI:~-YS -'> ~1~1~ ~.~3 ~ J Ns N SW SON & SO L, P.A. 8~2~ ~~g ~o~o, S~ 201 ~o~ (6~) ~11 m ~ (6~) 493-5193 w~ G. ~ B~ni~l ~. Donahu~ o, ~ C~ of New Ho~ Manager ~s ~. ~~ ~01 Xylon Aven~ No~h New Hope, MN 5~28 RE: Proposed Rehab of Regent Apartments Our File No. 99.11211 Dear Dan: The City is being asked by the owners of Regent Apartments to provide financial assistance for the rehabilitation of the three building apartment complex, each building housing 12 apartments. As you know, the City did provide financial assistance in the form of an interest-free loan to New Hope Apartments in 1994, and this letter will summarize the details of that project for you. The New Hope Apartments project focused on the rehabilitation of the basic needs of the aparlment complex, to combat aging and obsolescence. In particular, the rehabilitation Included the replacement of the roofs, doors, windows, carpeting, interior and exterior lighting, decks, plumbing, and ceramic tile, and replacement or repair of the security system. The parking lot was also patched and sealed, and the pool was filled in and landscaped. The rehabilitation was designed to maintain the existing housing stock, ~ to upgrade the units so as to attract more affluent tenants. The consultant for the City concluded that the energy and other savings generated by the project would equal or exceed the monthly repayment of the loan amount. The cost of the rehabilitation for New Hope Apartments was split between the City and the owners. The City paid for half of the cost in the form of an interest-fr'-..c, loan, and the owners paid the rest of the project cost themselves. The loan carded no interest, and was to be repaid by monthly payments of one percent of the initial loan amount, leading to repayment in 0",',,"'21~:_:_~ 16:,T~4 .TSiS,ATTOI~NEYS *-> ~E$15136 NO.~L~'3 PBO~ Daniel J. Donahue July 21, 1998 Page 2 100 months, or eight years and four months. The loan note contained a provision requiring the property owners to keep rent for two years at the same levels as existed in the six months prior to the project, increased only by the amount of inflation. So the owners were agreeing to rent control for two years. The City required a promissory note, a second mortgage, and other documentation from the building owners. Details of the proposed project for Regents Apartments are just now being worked out, but the repairs seem to be of a similar type as with the prior project. I note that the owners of Regents Apartments are asking for a grant. The New Hope Apartments project was a loan, with the loan covering half of the cost, and the property owners paying the other half themselves. From a financial security standpoint the City should consider having the finances of the owners of Regent Apartments, reportedly a partnership, reviewed for ability to repay the loan. If the owners do not have the financial wherewithal to repay the loan, the City could require personal guarantees by the indNiduals making up the partnership. Also, as part of its review of this proposed project, the City may undergo some expense in the financial analysis. The City should consider requiting the owners of Regents Apartments to prepay those expenses. Please call if you have any questions. Sincerely, Martin P. Malecha Assistant City Attorney cc: Kirk McDonald, Director of Community Development Susan Henry, Community Development Specialist Doug Sand~ad, Building Official Steven ^. Sondrall, City Altomey ~Ov( RO m~ ST. R.J~PH EL City of New Hope Apartment Loan Program EDA Resolution NO. 93-13 Purpose In September of 1993, the New Hope Economic Development Authority established a loan program directed at maintaining multi-family rental housing. The program appeals to the City's over 3,839 multiple rental units and focuses on three fundamental areas. First, it assists owners in obtaining necessary capital for property rehabilitation and upkeep. Secondly, it provides safe and descent housing opportunities at affordable prices for residents now and into the future. Lastly, by targeting public resources in areas of greatest need the program reverses property deterioration; thereby improving overall property values and enhancing public safety within the community. Policy Guidelines 1. In view of limited public financial resources, the program provides minimal assistance to the greatest number of projects, with foremost attention to those properties in the greatest need. Basic need improvements such as: roof replacement, wiring and heating or other mechanical repairs carry a higher funding priority. 2. Loans shall remain the preferred financing vehicle as opposed to grants or equity investments. A 50/50 matching of funds is a normal requirement for eligible projects. 3. No funding is provided which, directly or indirectly, is used for fees by the owner or related parties (including construction management fees, developer fees, use of "contingency funds," fee sharing, etc.) 4. At least two bona fide bids, from non-related parties, are required for each item that is a part of an overall program of rehabilitation. 5. No funds are provided to address defaulted mortgages or to bring taxes current. 6. In cases involving substantial financial stress, appropriate participation by the lender and equity owner is required for City investment. Participation may take the following forms: debt forgiveness, additional equity investment, interest rate reduction, loan term extension, payment deferrals, management fee reduction, reduced cash flow distribution, or other good faith efforts on behalf of the leader and property owner. 7. Public funds will only be provided in those instances in which they are essential to rehabilitation of the project. Public funds will not be provided when the primary result of that provision would be to merely raise the profitability of a building. 8. Public funds will not substitute for private funding that may reasonably be raised in the private market. 9. Each financial assistance agreement will contain an accelerated repayment provision in the event'of property sale, or other significant changes in circumstances. 10. Funds will not be provided to allow the owner to displace moderate income residents and attract higher income tenants. EDA rehabilitation funds may not but utilized in such a way that reloCation statues and payments are triggered. 11. Funds will not be provided for projects that would result in lower property tax payments, unless such projects meet other City objectives. 12. No funding will be considered for approval without prior objective financial analysis of the project, along with an independent recommendation as to the amount and type of proposed funding. Additional Information For additional information or clarification on this program contact the following individuals: Kirk McDonald Director of Community Development City of New Hope (612) 531-5119 Susan Henry Community Development Specialist City of New Hope (61:2) 531-5137 G: planning~ousing/aptprg EDA RESOLUTION NO. 93-13 / RESOLUTIOI~ APPROVING MULTI-FAMILY HOUSING POLICIES (PROJECT #510) WHEREAS, the City of New Hope contains over 3,839 units of rental multiple unit housing; and WHEREAS, many of those units have been constructed during the period from 1960 to 1979; and WHEREAS, many of those units have begun to show signs of aging and obsolescence; and WHEREAS, many private owners are having difficulty obtaining private capital neCessary to rehabilitate and properly maintain their units; and WHEREAS, many of these rental housing projects have been subjected to the real estate recession that has involved most of the United States as well as the metropolitan area; and WHEREAS, this housing stock, if maintained, can provide a decent, safe, and desirable source of affordable housing for the current and future residents of New Hope; and WHEREAS, the City of New Hope Economic Development Authority (EDA) has a desire to provide assistance where that assistance is clearly needed and warranted; and ~ WHEREAS, the purpose of that assistance would be to.' stem physical property deterioration, improve public safety, improve values, enhance neighborhood cohesiveness, and assist in the provision of modern rental amenities; and WHEREAS, the City of New Hope must target its limited resources, reflecting the reality that it can provide o. nly limited funding, compared to the funding that might potentially be required to renovate a significant percentage of the 3,839 multi-family rental units in the City; and WHEREAS, the goal of the EDA's involvement would be to meet public policy needs in the housing and human services area, rather than to resolve project financial problems and issues that private owners and lenders may have, and WHEREAS, the EDA racogrdzee that financial assistance to real estate projects involve some risk. NOW THEREFORE BE IT RESOLVED that the following policy shall be used by the EDA to evaluate potential future requeet~ for wietanca by rental unit owners: 1. The minimum amount of public funding required shall be provided in each case. 2. Funding priority will be given to basic needs (such ss roof replacement, wiring, heating, et©.) el opposed to provision of amenities (such al washers and dryers in each unit, new office ehcl lobby furniture, etc.) ' 3. No funding will be provided which, directly or indirectly, is used for fees by the owner or related parties (including construction management feee, developer fees, use of -. "c.ontingency fundl', fee sharing, etc.) 4. At least two bona fide bids, from non-related parties, will be required for each item that is a part of an overall program of rehabilitation funded partially or completely with City funds. Normally, 'in house' contracting and/or related party contracting will be prohibited. 5. No funds will be provided to bring defaulted mortgages current. '-~ 6. No funds will be provided to bring taxes current. / 7. Public funds will be used to leverage private funding wherever possible. Normally a 50/50 matching of funds for eligible activities would be required. 8. Wherever possible, loans shall be used as the preferred financing vehicle, rather than grants or equity investments. 9. In the case in which a project has substantial private financial stress, appropriate participation by the lender and the equity owner will be a requirement for City investment. The private investment may take the form of additional equity, debt forgiveness, interest rate reduction, loan term extension, payment deferrals, management fee reduction, reduced cash flow distribution, etc. In no case will tax funds be used to solve financial problems that would otherwise be solved privately in the absence of public participation. 10. Public funds will only be provided in those instances in which the public funds are essential to the rehabilitation of the project. Public funds will not be provided when the primary result of that provision would be to merely raise the profitability of a building. 11. Public funds will not be substituted for private funds that could reasonably be raised in the private market. For example, if a private loan could be obtained, and/or if Iow income tax credits would be available, EDA fund· will not be used to displace these other potential resources, e 12. Each financial assistance agreement will contain an accelerated repayment provision in the event of I~operty ~ale, or other Ngniflc·nt changes in circumstances. 13. Fund· will not be i~ovidld ~ will allow the owner to displac· moderate income residents end at~ract higher income tanenta. Nothing in this statement shall be construed to I~aclude the attraction of desirable tenenta to · i~ojact, and the displacement of unde~irabl, e tanenta. 14. Fungi· would not be i~ovidld for projects that would result in lower property tax payments, unle~ ~ch IXOiecU meet oth~ City objective·. 15. EDA Rehabil~ fund· ~hall not be provided fo~ u~ in such · way that Relocation ~ and i~n~enu are triggered. No funding wil be co, mid·md fro' al~mval without · ~ objective fin·natal analysis of the IXOject, and an ~ recommendation aa to the amount and ~ of I~Ol~Osed fultdil~... Adol;~.bY the Ec~ Olv~~ Authority in ~td for ~ C~ ~ ~w Ho~ ~ 13~ dly of ~tlmber. 1993. J. ~~e ~ Orlgtnating Depaxttuent Approved for Agenda Agenda SecUon Community Development July 27, 1998 EDA Kirk McDonald ] ~'~v' Item No. By: Director ]~'/~-'~ 6 DISCUSSION REGARDING DEVELOPMENT OPTIONS FOR CITY-OWNED PROPERTY AT 9200 49TM AVENUE NORTH (IMPROVEMENT PROJECT NO. 597) Staff requests to discuss development options with the EDA regarding the City-owned property at 9200 49th Avenue and requests that the EDA provide some direction to staff on this issue. This matter was last discussed at the March 23rd Council meeting. In June of 1997, the City of New Hope purchased this vacant 2.8 acre industrial site from Clarence Brandell. The City acquired the property because a portion of the property is identified in New Hope Surface Water Management Plan as a future potential site for a water quality pond to help improve the water quality of the large wetland north of, and adjacent to, the site. The City acquired the property to have control over the future development of the site and is interested in a potential joint-cooperative development (similar to Conductive Containers, Inc. on Quebec Avenue), where a development could occur in conjunction with the installation of a water quality pond. The City purchased the property for $195,000 and the City Engineer has estimated that the City would need to utilize approximately one acre of the site for ponding improvements, leaving two acres available for development. Shortly after the City purchased the site, the City was contacted by Upper Midwest Management Corporation, owners of the office building located on the property adjacent to, and just west of, this site at 4900 Highway 169 Frontage Road, who indicated they were interested in the property for a potential twin office building to match their existing building. They also understood the City's desire for a cooperative development where ponding improvements could be achieved. Over the past nine months, staff has had several conversations with Upper Midwest about this property and they have indicated they were still potentially interested in the property, however, no plans have been submitted to date. Staff has indicated to Upper Midwest that the City continues to receive inquiries about the property and has encouraged Upper Midwest to make a determination as to whether or not they want to proceed with developing the property. They indicated to staff that they were meeting with their investors at the end of Apdl and should have some indication and would respond to the City by the first part of May. MOTION BY SECOND BY Request For Action Page 2 In Mamh, another party interested in the property, Larry and Susan Johnson, submitted a Real Estate Purchase Contract to the City with an offer to purchase the property for $120,250. Their offer was based on utilizing 1.8 acres of the site and leaving one acre for ponding improvements. Johnson is the owner of Precision Machine Shop, which is currently leasing space in Hopkins. The company has six employees and Johnson was proposing to construct an 8,250 square foot industrial building on the site. Maximum one-story industrial development for the site would be 20,000 - 30,000 square feet. Johnson met with City staff and staff indicated to him our informal on-going working relationship with Upper Midwest. Staff indicated to him that his purchase contract would be presented to the Council for consideration, but that staff could not recommend approval at this time, pending further discussions with Upper Midwest. The Council took no action on the Real Estate Purchase Contract, as you wanted to wait and see if Upper Midwest Management was still interested in the property, and you indicated you did not feel that Mr. Johnson's proposal was for the highest and best use of the property in terms of the valuation/real estate taxes that would be generated by his proposal. In May, another party interested in the site met with staff. Bob Welle from Axion Realty, representing G & K Services, Inc. a business that processes and leases workplace uniforms, desired to register his client as a prospective purchaser of the property. G & K would use the site as a satellite facility as a drop off and pick up site for garments for processing at the company's main plant in Minneapolis. G & K needs approximately two acres of land to construct an office/warehouse building of approximately 15,000 square feet (see attached information.) Staff, again, indicated that the City was on hold until a response was received from Midwest. By June, no response had been received from Midwest, so the attached correspondence was sent from the City inquiring if they were still interested in the property. Ron Zwicker from Upper Midwest Management Corporation responded by phone around July 1~ that Upper Midwest was no longer interested in the site. Staff is requesting direction from the EDA on how you want to proceed with this site and offer the following options for consideration: 1. Take no action and leave the property undeveloped for the present time. 2. Reconsider the proposals that have been presented for the property: a. Precision Machine Shop - Larry Johnson is still interested in the property b. G & K Services - may still be interested in the property, but staff does not support paying a commission to Axion Realty c. A third inquiry has been received from John Levander of Caliber Development, who is interested in the property, but staff has no further details 3. Hire a commercial real estate person to market the property for the City and bdng agreement back to EDA for approval. 4. Have staff develop a Request For Proposal that outlines what type of development the City desires for the site, present to the EDA for approval, and seek requests for proposals from interested persons. Staff recommends approval of option 4401Xylon Avenue North City Hall: 612-531-5100 City Hall Fax: 612.531.5136 New Hope, Minnesota 55428.4898 Police: 612-531.5170 Police Fax: 612.531.5174 " Public Works: 612.533.4823 Public Works Fax: 612-533-7650 TDD: 612-531.5109 Fire Dep't. Fax: 612.531.5175 June 19,1998 Mr. Ron Zwicker Upper Midwest Management Corporation 4900 Highway 169 North, Suite 205 New Hope, MN 55428 Subject: City-Owned Property at 9200 49~ Avenue Dear Ron: As you are aware, we have discussed the vacant City-owned property at 9200 49~ Avenue on several occasions. The City met with you approximately nine months ago and you indicated that Upper Midwest Management may have an interest in constructing an office building on the property. The City was receptive to that idea and has been holding the property for that purpose. Over the past six months, the City has had three different proposals for industrial buildings on the site and has put these development requests on hold until you responded. I contacted you by phone several months ago and inquired as to where you were on the decision making process on the property. You indicated to me that by approximately May 1 some decision would be made regarding whether you would proceed with the development on the property or not. It is now neadng the end of June and the City has still not received a response from you regarding the property. Would you please notify the City as to Upper Midwest Manegement's current position on the future use of the property. Are you still interested in developing the property in a cooperative arrangement with the City or has a firm decision been made not to pursue the development. The City would certainly appreciate a response from you on this issue. Sincerely, Kirk McDonald Director of Community Development cc: City Council Dan Donahue, City Manager Family Styled City ~'~ For Family Living ~ E' A L T ¥ May 26, 1998 2380 Wycliff street, Suite 200 Saint Paul, MN 55114 T£L 612 643.0700 FAX 612.643 0860 Kirk McDonald E-M^~L rF.~,vaxiom@msn corn City of New Hope ~o~e~ c. Welle 4401 Xylon Avenue North ~c~ New Hope, ~ 55428 Re: Unimproved Land 49t~ Avenue North New Hope, MN Dear Kirk: As we discussed, the purpose of this letter is to introduce and formally register my client as a prospective purchaser of approximately three acres of land owned by the City of New Hope on 49th Avenue North. My client, G & K Services, Inc., has entered into an agreement of exclusive representation with Axiom Realty to find a suitable site for a satellite facility in the northwest suburbs for lease or purchase. My client needs approximately two acres of land to construct an office/warehouse building of approximately 15,000 square feet. G & K Services, Inc. has its corporate headquarters in Minnetonka, operates in approximately thirty states and Canada, and is publicly traded. My client's primary business is processing and leasing workplace uniforms. The satellite facility will be used as a drop-off and pick-up site for garments for processing at the company's main plant on Washington Avenue North in Minneapolis. Attached are photographs of my client's satellite facility in Eagan which was purchased in 1994. In the event ora sale of the City of New Hope's property to my client, we request that the City pay a commission to Axiom Realty equal to five percent (5%) of the sale price. Thank you for considering my client's potential interest in the City's property. Sincerely, Bob Welle RCW/sg 5995 Opt~s Purkwuy, Suile 500 Mtnne~onka, MN 5-3:1-i3 612/912-5500 Fax 61~912-~i9~ December 22, 1997 To Whom It May Concern: This letter confirms that Axiom Realty is representing G&K Services, Inc. in its search for warehouse space. We authorize Axiom Realty to represent us in discussions with any and all owners, landlords, developers, and brokers. Axiom Realty is authorized to negotiate on our behalf for these projects, but shall make no commitment without prior written approval from G&K Services, Inc. We in no way authorize Axiom Realty to incur any expenses on our behalf in their efforts. Also, we expect Axiom Realty to be compensated with a brokerage commission for their services by the owner, landlord, developer, or broker of the project in the manner consistent with the real estate practices in the ~vfinneapolis/SL Paul community. Ally owller, landlord, developer, or broker wishing to consider our tenancy is encouraged to cooperate fully and coordln~te all efforts through Axiom Realty. Siacerely, EDA RE IIEST FOR ACTION Originating Department Approved for Agenda Agenda Section Communi~ Deve]opment July 27, 1998 EDA Kirk McDonald ~ Item No. By: Director 7 RESOLUTION APPROVING INITIAL AGREI~'~ENT BETWEEN THE MINNEAPOLIS PUBLIC HOUSING AUTHORITY AND THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY FOR THE PPL/BASS LAKE TOWNHOMES PROJECT AT 7300-7332 BASS LAKE ROAD (IMPROVEMENT PROJECT NO. 614) The City Attorney has prepared the enclosed EDA Resolution approving the Initial Agreement required by the Minneapolis Public Housing Authority in connection with the PPL/Bass Lake Road MHOP Housing Project, along with a copy of the draft Initial Agreement. The final draft that will be signed by the parties will not be substantively changed from the draft copy enclosed. The Initial Agreement basically indicates the EDA is willing to participate with the MPHA and PPL in the proposal process to HUD for funding of the MHOP units. It also requires the EDA to enter into a Housing Development Agreement with the MPHA and PPL that will, among other things, establish design specifications for the units, confirm amenities in and around the development and require PPL to execute a regulatory and operating agreement and provide declaration of restrictive covenants relating to the operation of the units. The main responsibility for the EDA under the Initial Agreement will be the maintenance of an applicant waiting list and the administration of grievance procedures for the MHOP units. These lists and procedures have or are being developed by the Metropolitan Council. The EDA's responsibility for these issues can be satisfied by delegation to the Met Council. The Met Council is currently preparing an agreement between the EDA and itself for the assumption of these EDA responsibilities which will satisfy the terms of the Initial Agreement. The Met Council Agreement should be available for EDA consideration at the July 27~ meeting, however, the City has not yet received the Agreement, and it may have to be added to the agenda as a last minute item or considered at the first meeting in August. Under either circumstance, staff is recommending approval of the MPHA Agreement at this meeting, as its approval by the EDA is important in order for PPL to keeps the project financing on schedule. Staff recommends approval of the resolution. JUL-23-98 THU 10:5@ F~ NO. 4255887 P, 02/17 SwA so & p& ~o~s ~ ~ ~ ~~ ~o, ~ 201 T~O~ (6~) ~11 · ~ (6~ 493-~93 ~ A. Mr. Kirk McDonald New H~ Devslo~ D~r Ci~ 0f N~ H~ ~1 Xylon Av~ue No~ N~ H~, Mt-~m 5~28 ~~ ~ ~m~ ~ R~H~ ~j~ ~ ~ No. ~.1~ ~ ~k; Pl~ ~ ~ a p~ ~DA ~l~n ~~ ~ ~ A~m ~ by ~ Mi~~ ~lk H~ A~ ~ ~on wi~ ~ PP~ ~ for ~~ ~ ~ ~A, MO~ ~ ~ ~ ~l~on at ~ luly 27. 1~8 I ~ ~1 ~~ ~s~ ~ ~ ~ ~ m~~v~y ~~m ~ ~d~ ~OP~. ~~~~ for~ ~A~ ~ ~ ~ w~ l~t ~ ~ ~ of ~ p~ for ~ ~OP ~. ~ y~ ~, ~ ~ ~ p~ ~ve ~ ~ ~ d~el~ by ~e M~~ ~il, ~ ~A's ~~ ~r ~ ~ ~ ~ ~ by dcl~ m ~ ~ ~. ~ ~ ~ ~w, ~ M~ ~ ~ ~y pr~ ~iom ~ ~ ~p~ ~ple ~ ~ M~ Co~ ~sible for ~ p~on ~ ~ JUL-23-@8 THU 11:00 l~ NO, 4255887 P, 03/17 P~t~e 2 If you have any qu~tiom or ~ re~arding the Initial Agreement or the enclosed Reaolulion, please do not hesitate to co, t~ me. Very truly yours, St~v~ A. gondmll JUL-23-~8 THU 11:00 ~ NO. 42515887 P. ~ HOPE EDA RF.~OLUTION NO. RESOLUTION APPROVING INITI~ BETWEEN ~ MINNEAPOLIS PUBLIC HOUSING AUTHORITY AND T~n~'. NEW HOPE ECONOMIC DEV,'.! OPMENT AUTHORITY FOR ~ PPLfBASS LAI~. TOWNItOMF~ PROJECT AT T300-7332 BASS LAKE ROAD (IMPRO~~ PROJECT NO. 614) W~mREAS, the New Hope Economic Dcvelopment Authority (FDA) de~ires to cooperat= with Project for Pride in Living, Inc. (PPL) on the r~ievelopment of an area located at 7300-7332 Bas~ Lake Rosd; ~ WHEREA~, a Cooperation Agreement between the City of New Holm, th~ NDA anti Minneapolis Public Housing Authority (MPHA) ~ already been signed which will permit PPL to obtain funding from the MHOP program for said project; ~ 'WHEREAS, rJ~e Cooperation Agreement state~ that th, City will not as~s$ mai estate taxes agai~t tho I2 MHOP units within rim ~lev¢lopmen~ for r~e 40-year .exemption perioc[ and that in lieu of real estate taxes, the owner will pay ~e NDA the PILOT (payment in lieu of u~xes); a~ WHEREAS, An Initial Agreement I~etween the EDA and the MPHA i.s now al~ necessary to permi~ PPL to obtain funding from the MHOP program for said project; and WHIH~AS, ~e Initial Agreement basically d~fmes tl~ relatiomhip of th~ MPHA aa~ EDA with rc. spect to tho pl'~nnir~g, c.0nsll~tiol~, ow~rship and operation of the MHOP submit a proposal ~0 HUD for develovment funds, the ~mount still to be detenuined, to ~ssist PPL in th~ development, construction and operation of eight (8) r~plw.~um~ an~ rout (¢) imen~ve MHOP units of housing; and ~AS, th~ Initial Agra. merit will require the EDA. MPHA and PPL to ~nt~ into a Housing Development Agrs~n, nt y~t to bc prepar~ which will esrablisl~ design ~'cif~.atiom for the units, confirm amenities in and around the dev,lopment, establi~ a float system for the MHOP units wi~h~u th~ d~velopment rather t~n~ spccify ~10~ciflc units and r~quire PPL to execute a Regulatory and Operating Agreeme~ ~,~! provide a D~tiou of Re~'ictiv~ Covenants relating to the operation or me development: and JUL-2$-~8 THU 11:00 ~ NO. ~255887 ~, P,~5~17 the EDA v,,ill be required to ma/nm/n a Waiting List anti ~mlnlster a Ca/evaace Procedure for ~hose people applying ro occupy ami occupying the MHOP un~. However, this NDA respo~ibility ma), be safisT~ through a mbcontr~t w/th the Mcu-opolimn Council and du~t the Me~ Council _sos already ag~d to accept th/s respo~ibfl~, NOW, THEREFORE, BE IT RESOLVED bb' the New Hope Economic Development Authorit~ that the Initial Agl'eemen~ is approved and thst the Pr~side~g and F_,xccutivo Direcwr are authorized to ~xecut¢ the agrccmcnt on belmlf of ~ Economic Development Authority. Adopted by the New Hope F, conomic Dcv¢lopm~m Aur~orlty, Hennepin Count'y. Minnesota, this 27th day of ~uly, 1998. W. Peter Enck, Presi~ At~es~: Daniel I. Dom~Im~" Execute Direaor JUL-23-98 THU 11:00 F~ NO, 4255867 P, 06/17 ~ ~a.'3z ~ $ ~w.,EY, L~13. ,~ 61:~'4~J3 $~¢j3 NO.rs~e DRAFT: 05104/9~ THIS AGI~E£IVI~'NT, tnade this day of , 1998 by and ~ th~ ~lis ~b~ Ho~ A~miU ~ for ~ C~ of ~~~s, a oub~c ~y ~t~ ~d ~!i~¢ (the "~) ~ ~ ~~c ~lo~nt Av~ ~ ~ f~ ~ Ci~ of N~ Ho~ ~ p~c ~ ~o~r~ ~ ~Ii6G (t~ "~A") ~ ~ ~m p~t to ~~ta ~S, { 471.~9 ~ { ~9.012, Su~s. l(l i) ~ 3. c~ ~ o~~ ~ of low ~ ~bli~ ~>~ ~ ~ pmj~ t~~ ~ ("~OP') p~t ~ which it ~l ~~ ~ ~ ~~ ~ ~ci~ ~ ~ ~oBon ~ ~on of~li~ ~nS ~ (~ '~OP U~"); ~ ~f of a Iow ~me ~g ~ ~it ~ip m ~ ~ (~ "~ ~ ~1{~ ~ ~ ~ m l~ ~l~ (12) ~OP U~ ~ i~ ~lo~ of a 3~t ~~;!y of ~ (~ MHOP U~ ~ ~ ~elo~ ~d NOW, ~FO~ it ~ ,W~ ~ ~o ~ ~ ~ fo~; m~ ~r ~ A~ ~ ~ ~n~ ~ ~~ of ~ ~~t ~a ~ 4 JUL-23-S8 THU 11:01 i~AX NO, 425588? P. 07/1t' C. Th~ MPI~ sksll b~ rosponslbl~ For ~s~ ~ ~ o~ ~ ~~ ~ O~ i~ ~v~ ~y ~. D. ~a ED~ ~l ~ ~ibl~ for ~I li~n ~ ~ M~~ Co~ ~ ~ ~~ Ho-~i~i ~i~ Airy ("~a") ~ ~ to gl oth~ ~g eff~ ~ ~clo~cnL E. ~ EDA wi~ ~o~ ~ ~e ~ a ~ of ~ ~A's ~i ~~ ~OP U~. F, ~ ~ ~1 ~ ~ ~~on of ~ ~vis-B~ ~e ~elo~ent ~~t ~ ~d ~mg ~ ~ ~ ~ ~ ~r i~o~on ~ k may ~ly ~ui~ ~ ~ to ~ i~ ob~o~ ~~. A~~t ~ ~ ~ ~ch ~11: U~U ~ 6 t~~ ~ 6 fo~-~ ~; B.C~ ~ ~~ m ~ ~d~ ~ ~ ~ ~ ~elo~ C.~ ~ ~ ~ of ~OP ~ ~ ~ ~wlo~t ~!1 ~ ~ d~ u~ v~ ~ av~bili~l l~u~ ~ ~s~ for ~~ i~, ~ ~16~ ~ ~velo~ JUL-23-@8 THU 11:01 F~ NO. 42515887 P, 0.8/!7 61~3eo42'r? ' :" ' maj~tlttn and operate the M/lOP Un/ts in t~ui~men~ o~ ~oa 5 oE ~ U~ Sm~ Ho~n~ A~ of 1937 ~ ~ ACC; ~velo~t ~~. ~AGE~. ~e Re~am~ ~ ~ A~~ s~l ~o~de ~ ~j~ for Pfi~ ~ Li~ ~. (~ "~g As~t") ~ ~c ~l ~e ~i~ at ~e A. ~1 ~pty ~ ~1 f~ ~w, ~o~ ~ ~li~ ~ ~ ACC. B. ~I provi~ ~s ~~DA ~ ~ ~ D. s~ ~ve ~ ~ ~~Di ~ ~ ~ out ~ch a~s~v~ ~o~ ~ ~ut ~ li~ m) ~h~t ~t~s ~i~ ~on of ~ ~ ~ ~i~. ~~ A~i~ ~t ~ t~lv~ 02) ~OP U~ A. ~e ~1~ A~ Uni~ (~ de~ ~ No. ~-71R. ~s~ m ~~te ~ ~OP, ~~ ~ ~ ~ list JUL-23-98 TflU 11:01 F~ NO. ~255887 P. Og/17 . '~ 14:3I ~$ & ~, LTD. + 61~ 493 ~1~ ~.~ ~1~ pl~e all applicants ~om ~c lmA On irs ~ H~ ~ (s~j~ M ~o~} m~ ~ Mi~El ~ C~ of Now Ho~ ~y eli~b for ~ ~i~. ~ ~DA ~11 ~ve ~l ~d ~pl~ ~1 o~ ~ ~~ of tho Iis~ ~d ~ M~8 AS~t ~11 ~vc ~lc~ ~ol ov~ ~ ~l~on of ~i~n~, ~ long ~ ~e ~OP ~~ ~ ~ f~ ~ ~ ~ ~pli~ to ~ EDA ~r p~t on ~ ~OP ~i~8 ~ ~ ~ ~ ~m ~1~ ia no eli~ble ~ $~l~ ~ ~ ~t ~ ~g~, ~ ~ ~ ~ ~ ~ 0~ ~pli~ on ~ ~ IL~ ~ ~A A. ~ ~ ~1 d~i~ ~ E~ of ~ ~aa ~anl P~ CHOP') B. ~ Wi~ 1~ m~ of ~IOP, ~ EDA ~ ~ ~~on ~ ~ ~ ~ A~ ~v~l~ ~ C~fl~ ("~C"~ C. ~o ~ ~l{ ~ m~n~bk f~ ~ ~~Oa of~ ~i} by ~ i~t ~ T~ ~R~CA~ONS ~ EDA ~ ~y c~ to ~ ~~ ~g offi~s ~ n~ of ~OP ~i~ I~ wi~ ~ ~~ ~~ ~ ~~ ~~ ~0n ~9.~. ~i~si~ 4. OP~~G ~IDY. UM~ACC, ~ ~ a ~vid~ ~~ ~i~ m ~ ~ for ~ ~ ~ ~ ~, ACC, ~ ~ ~I~ t~ ~OP o~ s~i~ ~ ~ ~ of ~ ~OP U~. ~ ~ m ~ ~~ JUL-23-98 TttU 11:02 F~ NO. 42515887 P. 10/17 fully in a Regulatory and ~ Agmemem between tl~ MPt4A earl the. Owner, will be genemUy as follows: A. A~ used ia this Section VII:, the fotlowin~ terms ~ell l~vc thc fotlowin~ I. 'Allowed P~ject E~xpcnacs" means ell necessasy and re~L~nable operating cxpcnse~ of the Development for any period, includi~it: (a) dl ord/aa~ and nceessa~ expenses of op~t~0ns or' the Development shown as line items on Form HUD..~254?-A WoHcd~), exclueive 0£ t'~ e~te~e taxcs and debt service requiren~nts of any lender md exclusive of utgit~ ~ which ere the dire~ r~ponsibility of' umen~ provided, howcv~', the~ it' thc 0wrier shell be required to boaow funds for repairs, repents or improvmn~nt~ not funded from e Devetopment re.~-rvc finxl for mplec=nents, debt re'vice rcquiremena for say such borrowin~ ~'oved by the MPHA (wbleh ~erov~l sh~tl not ~ly b~ withheld) shall be included in Allowed Proj~c~ Expee~s; provided, further, ttm MI-IOP U~it Expsases by th~ MPHA or I~DA, oo a grant ~ for rc. pti~ or improvemeets: managcmen~ fccs payable pursuant to ~ Pmpen~ IVfanag~t weU as acc, o~g and audit ~, including tax prq~muJo~ ex]xJ~$=~, permiued to be duu1~d ~ project pmA~ to ]IUD ~k ~370.2 RW~-I. F~f,~ And 4c~A~ J'ro~e~es ~ ZAn~,d M~m~, 3;rejects. or any successor thereto; by any I~xler and approv~ by the ~ 2. #MHOP Pm.o~tn~" ~ mean ~ h~e.t of (1) t~ number of Units. d~vlded by H~e total numtmr of units at tho Dovolopm~ or (i0 the net t~tabi, glua~e f,,t of tl~ ~-IOP Units (as~um~n~ 6 unia and 6 four-bedroom unim)~ divided by d~e fl~t refltal~le square feet of ifil tile ~mits at ~J~ '~viHOP Unit Expenses" shaJI ~ (A) Allow~ lh~je~t Expense4, multipH~ by th~ IvlHOP P~, plu~ 0~) th~ Imylxt~t in li~a of estate tax~ made in ]=spe~ of the MHOP Unt~ tr any, plus (C) pa/d to M~0P Unit oeatl~ts ~ ~lit? ~./m~~ ¢~.e. ~ JUL-23-98 THU 11:02 F~ NO. 4255887 P. 11/17 ,,~5,~,~j~ 14=3:1. HI~I..ME$ 8, (iIRI..EY, LTD. ~ 61:2 '~9-~ $~.93 NO.C=,C~ ~.~ rf.m'); p~ovicied, however, that if aay linc i~ ~ ~OP P~~ p~u~ ~ ~ ~ ~~ of $~ Vff. B.I. ~ ~h ~n~ sb~l ~ ~lud~ ~ ~OP Unit ~is o~ ~ 4. "~OP Unit ~" sh~l m~ ~ ~e ~iv~ m ~t of~OP U~, ~cl~in$ ~t ~ ("T~t ~" 913.102) ~ ~ ~ ~ of ~ ~iv~ U~ mcl~ ~ ~ of reven~ ~ ~ 92~4%A, ~ ~l~ivo of ~~ m~idy. 5. "~m~ ~o~ ~j~ ~~' "~*te~ ~OP Unit su~n B. ~K ~ ~ day of ~ ~~t ~ Fi~ Y~, ~ ~t ~ ~ ~ a ~~ ~ ~ for ~ follo~ ~om~ for ~ mbj~ ~, ~bj~ ~ ~ ~~ ~i~o~: 1. E~ ~1o~ ~j~ ~ ~1 ~ ~ ~.nbly ~ by ~e~z-~ ~ for ~h ~~ ~~ly ~~~ u~~y ~ gl~on of s~ i~ M ~e ~OP U~ ~ ~ ~s of ~ ~OP P~~ is ~~ (~8., ~ ~ ~ ~ ~t ~ ~ ~~1 ~~ ~ a~bl~ at ~ ~ of ~ ~s su~i~o~ JUL-23-g8 THU 11:02 ?~ NO. 425588? P. 12/17 ~ 1~:~i HDLM~S & C~cl.~¥, LTD.. 6$2 49~ 519~ NO.~6~ MPI-L4. Fiscal Year, Estimated l~IOP U~it Iacome ~ be determined on the basis of ~ aggreg~ teaaut tents aattmily collec~ flu- ~dl M240P Up. its durin8 the first s~x mo~ths of' the ~ecediag MPHA FLscal Year. Notwitbstand~ ~e fomgoi~ wi~ respect to an), MPHA FLr~I Year. the MPttA may aeree to Project Estimated MI-lOP Uaiz Income ~t a level different fi'om that w~c~t would ot. het~s~ be cstablishcd pursuant to the precedl~ sentence, ~ into account (a) the rea.~nably a~Ii~ level ot' incomes of' temmts an6cipn~l ~ b~ admitted to the MI-lOP Unite during such period, bucd on anti;ipated ~umover and thc admissions policics, and Co) reasonably anticipaied increnses in income l~vels of existins tcnants ~ on tcnent per~'pation in cmplo~mem train~ and oiler supportive service~ programs. C. During car. a MPHA Fi.w. al Ycar commencing with ~ iL'st MPHA Fiscal Year at~ter IX)FA, and subject r,o any limitations nrisin~ i'om application of' ,~ctkm il0 (~) o£ the Act ~ operation of 0~c Developnw~t Opcmti~ Subsidy Cap, thc MPHA sha~l pay to the Owner an amount equal ~o (1) Es~___,~__~l MttOP Unit Expenses for such period, l~ss (2) F..stima~ MI-lOP Unit Inoome for tl~ pctiod (the 'Operating Bubsidr Requtn:mcm"). The MPHA shall pay to ~ Owner, on the first day of each month of a~n / Fi.qcal Yenr, on~.twelP, lt (1/19) of Opera~ Subsidy Requ~remertt for such MPHA l~iscel Year, provided, ~wever, Bud~e~ and Oper~ Sul~idy Requlrcatcnt for any MPHA Fiscal Ymr, to pn~vide for tmequa! monthly pas, meats for such ~ear. V//I. REGULATORY AND OPERAT/NG AGREEMENT RF.~PON$/BILITY. Re~latory and Opmtin~ A~nent ~ ro~ onaoin~ joint mo~ito~tn~ action or t~onSe called for tn md A~eem~nt, or nny ot~ a~,m~t in~lv~ t~e MHOP Ualt~, t~e d~ision of th~ MPHA ~ b~ r, on~Hiv~; with r~spc~t to all which dia~tly ~r ~y eff~t oither i~s fi~iml obli~$ with ~-t MHOP Uu~c$ or ~ rtt~omhip ~h I-IUD m~i~$ ~ th~ ACC. In mi! oth,r ammo, d~i~io, of t~ F.~DA ~ oo~troi. r~imbunem~ it' any. Shortfa~ ethan' because of the rccalculatton of tltre~ esth,,-*~ opemfin~ subsidy or beemise of'n__~_ sary witbd~wal bora the reserve ~ b~ made up by the MPI~ or EDA, but tl~ nrc not oblisated to do so. A.~MINISTR~TIVI$ COb~'& Th~ MPttA nad EDA shall ~ bear li~ costs associated wtt~ ~ ~spectivc otil~ons and r~itdlitiea dcscribed hcrcin or othe~wi~ rnlatnd ~o the cons~ and opKntion of ~n~ MHOP Units. Th~ MPH~ and ~ EDA sl~all scpam~ly ~ as to rcimb~ to the EDA, if nny, for : JUL-23-98 THU 11:03 F~ NO, 4255887 P, 13/i7 · ,~ ~ 14.'31 I..0_~ ~. G~I.~Y, LTD. IT. RMINATION A_NO/OR A. Ia ~he ev~t ~ ~DA ~s~ t0 ~~ ~ A~ h my ~ ~ ~ ~11o~: 1. N~ (~) Oys' ~fi~ of iu ~t~on w tc~ia~e ~I ~ ~ u~ 2. ~e EDA ~all to ~e ~o~ ~n ~ ~, on ~ o~ b~, ~ ~ ~DA, · e ~, ~ ~ ~D or ~y o~ ~~ ~, oe the o~; · ~ ~velo~mt; ~elo~t. B. ~ ~ ev~t ~e ~A ~t~ ~11 ~ r~t to ~ ~lo~ Pm~ f~ ~ ~i~ ~ ~~~ous. i~ ~ ~ ~ in ~ ~e~ ~ shall ~y ~ m~, o~, ot ~ploy~ ~ici~ ~s ~ ~ ~ ~ ~ ~ i~ of ~y ~~o~ ~p, ot ~ ~y ~ ~ for ~y ~y oblig~ ~ ~ florid'on requirements of' npplicable f~dcrnl, statc or Io~al Ltws or rc~ul~oDs. C. Any titles of .t~ sevu~l parts, Article,~, and $~ions of' this Alp~mcllt arc ina~rted for convctliea~ of ~cfcmlce ortly and or inm'preting ~y of its provisions. D. EX0~! as O~ ~XpmSsly provided in this ASre. em~ a n~tt~e, ~ or o+.l~ m~ununim~tion uzxd~ the A~ment by oltl~z pm'ty to ~e other shall be sufficientty given or delivered if it is dispatched by registered or certified mail, 1. in the cas~ of the MPI-L~ is addressed to or delivered l~rsonatly to th~ IVI'PHA at 1001 North Wnsl-jmSton Av~uu~ Attention: Executive Director; and 9_. in the ~ of the I~DA, is addressed to o~ delivctcd persortally to the EDA at 4aOl Xylon Avenue l~ot't~ New Hop~ MN 5S42~-4898 fi'om time to time. desipate in wtitina ami forward to the od~ ss l:wo~d,od in this Se~on. E. Tbis Asreemmt rosy he exeeu~ in any number of ~o~, each of which EC~NOM][C DEVELOI'~ AUTHORITV 1~ AND FOR THE CITY OF NEW HOPE STATE OF MINNF~OTA ) )ss. COUNTY Ot= _ ___ ) On this , day of ,19__, b~fore n~, et ~ ~Hc ~ ~ for Co~, ~y ~~ _._ ., ~ ~ , , ~v~l~, of ~ ~nom~ ~o~ A~g~ ~ ~ f~ t~ Cl~ of N~ Ho~. a p~lic N~ Publle Agreement lO be d~y executed in its name ant[ behalf on o~ a~ of tl~ d~e fit~t a~ove wr{tteu. MINNEAPOLIS PUBLIC HOUSING AUTBO~ IN AND FOR ~ CITY OF MINNF. APOUS Its Chairmm ' JUL-23-98 THU 11:04 F~X NO, 4255887 P, 17/17 F..XJ~BI~ A Wo hereby ceni~7 th~ ~ho wai~ing list of~ ~no~c ~vel~t A~F ~ a~ ~r ~ Cily of New Ho~ for ~ Me~o~li~ ~ousing Op~~ ~ ~ ~ B~ L~ To--es ~v~lo~ent in N~ H~ ~ ~ ~~ ~ a C~t ~ in ~e~ of Hol~ et ~. v. Ci~s ~t ~., U.S.D.C. ~. ~, 4~ Div.) Ci~l No. 4-92. 712~d 24 C~P~5, P~ g, 913, ~~~~i~eF~us~~ ~~ la~ ~d rc~aio~. ECONO~C ~LOP~ ~ ~ ~OR T~ C~ OF ~W ROPE STATE OF M]~IE$OTA ) )sS. COUNTY OF ~___ ) On this ~ day of , ! 9 , bc~t~e me, a notary public within and for , __ cotm~7, pa,~,~l~ ~ ,~pe~ivcl~, of ~ ~.conomic Deve~op~ Author~ i~ ~d t~,ie Ci~/of~,w body corporate smmd politi~ under tim laws of the Sts~e of'lvlinuesoM (the "EDA"), named in thc foresoius iusmmm~ aud .cimowleds~d sam iusmmmu on Uetm]f of the