061096 EDA Official File Copy
CITY OF NEW HOPE
EDA AGENDA
EDA Regular Meeting #10 June 10, 1996
Agenda #11
President Edward J. Erickson
Commissioner W. Peter Enck
Commissioner Pat La Vine Norby
Commissioner Gerald Otten
Commissioner Terri Wehling
1. Call to Order
2. Roll Call
3. Approval of Minutes of May 28, 1996
4. Resolution Relating to a Redevelopment Agreement with Northridge
Properties of New Hope Limited Partnership; Waiving the HRA Lien
Maturity Under the Redevelopment Agreement in Connection with the
Issuance of Refunding Bonds by the City and Authorizing Execution of
Various Documents in Connection With Such Refunding Bonds
5. Resolution Authorizing Publication of Notice and Holding of a Public
Hearing Regarding Sale of 6081 Louisiana Avenue North (Improvement
Project No. 519)
6. Adjournment
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
HENNEPIN COUNTY, MINNESOTA 55428
Approved EDA Minutes May 28, 1996
Meeting #9
CALL TO ORDER President Erickson called the meeting of the Economic Development
Authority to order' at 7:43 p.m.
ROLL CALL Present: Erickson, Enck, Otten, Norby, Wehling
Staff Present: Sondrall, Donahue, Leone, McDonald, Bellefuil
APPROVE MINUTES Motion was made by Commissioner Otten, seconded by Commissioner
Wehling, to approve the EDA minutes of May 13, 1996. Voting in favor:
Enck, Otten, Norby, Wehling; Abstained: Erickson. Motion carried.
RENTAL HOUSING President Erickson introduced for discussion Item 4, Motion Approving
Item 4 Tasks Unlimited as the Owner and Service Provider for the Special Needs
Rental Housing to be Located in New Hope (Improvement Project No. 566).
Ms. Sarah Bellefuil, Community Development Specialist, stated at the
direction of the EDA she has arranged a presentation which includes two
speakers.
Ms. Bellefuil stated New Hope has received $90,000 in HOME funds
designated for special needs housing. Specifically, a large house, duplex,
or small apartment would be purchased and rehabilitated for Iow-income
developmentally disabled or mentally ill persons. In addition, the City has
committed a $90,000 zero interest loan that would come from Economic
Development Authority (EDA) funds. The loan would be considered a first
mortgage on the facility and would have to be paid back to the City. The
City's role in the project would be to provide financing and staff services
(including recommendations on site selection and rehabilitation) to the
organization that would purchase and manage the site.
Ms. Bellefuil introduced Laura Klein, a Development Consultant with Project
-for Pride in Living (PPL), and a representative for the CHDO.
Ms. Klein discussed her relationship with the CHDO, the HOME funds that
are available to support the project, the selection process used to find a
service provider, and PPL's analysis of Tasks Unlimited proposal.
Next recognized was John Trepp, representative from Tasks Unlimited. A
short video describing Task Unlimited's program was viewed by the City
Council. Mr. Trepp's presentation included the types of services provided
by Tasks Unlimited, their organizational philosophy, years of experience,
housing arrangements for clients, the Tasks Unlimited work program for
clients, and their reception and involvement in other suburban areas.
In response to questions from the EDA, Mr. Trepp provided the following
New Hope EDA May 28, 1996
Page I
information. The program offers housing to persons suffering from mental
illness, 75-80% of the clients are males, and most facilities host four to six
individuals who reside in the home on a long-term basis. The program
includes an Admissions Team which evaluates clients' qualifications prior
to acceptance to one of their lodges. Mr. Trepp stated in Tasks Unlimited's
26 year history he is not aware of any community problems encoUntered
in communities with the lodges.
Ms. Bellefuil reported staff's recommendation that Tasks Unlimited be the
owner and service provider for the special needs rental housing to be
located in New Hope. If the EDA approves Tasks Unlimited as the owner
and service provider, staff will begin working with Tasks Unlimited to find
a suitable transitional housing site in New Hope. in addition, the City and
Tasks Unlimited will enter into a Letter of Understanding with regards to
the project.
Mr. Donahue stated a number of New Hope sites have already been
reviewed, but a specific property has not yet been determined.
MOTION Motion by Commissioner Norby, seconded by Commissioner Enck,
approving Task Unlimited as the owner and service provider for the Special
Needs Rental Housing to be located in New Hope (Improvement Project No.
586). Voting in favor: All, Motion carried.
IMP. PROJECT 519 President Erickson introduced for discussion Item 5, Resolution Approving
Item 6 Change Order No. 3 for Construction Contract for 6073/81 Louisiana
Avenue North (Improvement Project No. 519).
EDA RESOLUTION Commissioner Enck introduced the following resolution and moved its
96-10 adoption: "RESOLUTION APPROVING CHANGE ORDER NO. 3 FOR
Item 5 CONSTRUCTION CONTRACT FOR 6073/81 LOUISIANA AVENUE NORTH
(IMPROVEMENT PROJECT NO. 519)." The motion for adoption of the
foregoing resolution was seconded by Commissioner Wehling, and upon
vote being taken thereon the following voted in favor thereof: Erickson,
Otten, Enck, Wehling, Norby; and the following voted against the same:
None; Abstained: None; Absent: None; whereupon the resolution was
declared duly passed and adopted, signed by the president which was
attested to by the executive director.
ADJOURNMENT Motion was made by Commissioner Norby, seconded by Commissioner
Wehling, to adjourn the meeting. All present voted in favor. The New
Hope EDA adjourned at 8:17 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA May 28, 1996
Page 2
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
Finance/Administration ~--~ne 10, 1996 EDA
' 1~, / ItemN°'
By: Larry Watts By: [/ 4
RESOLUTION RELATING TO A REDEVEL/PMENT AGREEMENT WITH NORTHRIDGE PROPERTIES OF
NEW HOPE LIMITED PARTNERSHIP;/WAIVING THE HRA LIEN MATURITY UNDER THE
REDEVELOPMENT AGREEMENT IN CONNECTION WITH THE ISSUANCE OF REFUNDING BONDS BY THE
CITY A/qD AUTHORIZING EXECUTION OF VARIOUS DOCUMENTS IN CONNECTION WITH SUCH
REFUNDING BONDS
This resolution allows Northridge to refinance their existing loan and maintain
a status quo on the lien.
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Review: Administration: Finance:
RFA-O01 ~
CERTI'FICATE
NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY
I, the undersigned being the duly qualified Executive Director
of the New Hope Economic Development Authority (the EDA), hereby
attest and certify that:
1. As such officer, I am the recording officer of the EDA and
have the legal custody of the original record from which the
attached resolution was transcribed.
2. I have carefully compared the attached resolution with the
original record of the meeting at which the resolution was acted
upon.
3. I find the attached resolution to be a true, correct and
complete copy of the original:
EDA RESOLUTION NO. 96-__
Resolution Relating to a Redevelopment Agreement with
Northridge Properties of New Hope Limited Partnership;
Waiving the HRA Lien Maturity Under the
Redevelopment Agreement in Connection With the
Issuance of Refunding Bonds by the City and Authorizin9
Execution of Various Documents in Connection With
Such Refunding Bonds
4. I further certify that the affirmative vote on said
resolution was __ ayes, hayes, and absent/abstention.
5. Said meeting was duly held, pursuant to call and notice
thereof, as required by law, and a quorum was present.
WITNESS my hand officially as such Executive Director
this day of , 1996.
Daniel J.. Donahue,
Executive Director
EDA RESOLUTION NO. 96-
RESOLUTION RELATING TO A REDEVELOPMENT
AGREEMENT WITH NORTHRIDGE PROPERTIES OF
NEW HOPE LIMITED PARTNERSHIP;WAIVING THE
HRA LIEN MATURITY UNDER THE REDEVELOPMENT
AGREEMENT IN CONNECTION WITH THE ISSUANCE
OF REFUNDING BONDS BY THE CITY AND
AUTHORIZING EXECUTION OF VARIOUS
DOCUMENTS IN CONNECTION WITH SUCH
REFUNDING BONDS
BE IT RESOLVED, by the Board of Commissioners of the New Hope
Economic Development Authority (the "EDA"), as follows:
1. Recitals. The Housing and Redevelopment Authority in and
for the City of New Hope, Minnesota (the "HRA") has approved a
redevelopment plan, as defined in Minnesota Statutes, Section
469.002, subdivision 16, together with amendments thereto,
designated as Redevelopment Plan 82-1 ("Redevelopment Plan 82-1"),
and a redevelopment project to be undertaken pursuant thereto, as
defined in Minnesota Statutes, Section 469.002, subdivision 14,
together with amendments thereto, designated as Redevelopment
Project 82-1 ("Redevelopment Project 82-1"). In connection with
Redevelopment Plan 82-1 and Redevelopment Project 82-1, the HRA and
the City of New Hope (the "City") entered into a 1984 Redevelopment
Agreement dated January 30, 1985 (the "Redevelopment Agreement"),
with Northridge Properties of New Hope Limited Partnership, a
Minnesota limited partnership (the "Developer"), and Charles P.
Thompson and Mary Jane Thompson whereby the HRA sold certain
premises described therein (the "Land") to the Developer. The
Developer has constructed a 73-unit apartment building on the Land
(the "Project"). To secure performance of the Developer's
obligations under the Redevelopment Agreement, the HRA has imposed
certain covenants, restrictions and limitations on the Land, all as
more fully set forth in the Redevelopment Agreement. Pursuant to
Minnesota Statutes, Section 469.094, subdivision 2, the City
transferred control of Redevelopment Plan 82-1 and Redevelopment
Project 82-1 from the HRA to the EDA.
The Developer has proposed that the City issue its Multifamily
Housing Development Refunding Revenue Bonds (Chardon Courts
Project), Series 1996 (the "Refunding Bonds"), in a principal
amount not in excess of $5,100,000 under an Indenture of Trust
between the City and Norwest Bank Minnesota, National Association,
as trustee (the "Trustee"). The proceeds of the Refunding Bonds
will be loaned to the Developer and applied to prepay the Developer
Loan, as defined in the Redevelopment Agreement. The Bonds will be
secured by a Combination Mortgage, Security Agreement and Fixture
Financing Statement (the "Mortgage") from the Developer to the City
and an Assignment of Rents and Leases (the "Assignment") from the
Developer to the City. The City will assign its interest in the
Mortgage and Assignment to the Trustee.
The Deve]oper has requested that the EDA (i) agree that the
refinancing of the Deve]oper Loan by the issuance of the-Refunding
Bonds does not constitute an HRA Lien Maturity, as defined in the
Redevelopment Agreement, and (ii) acknowledge that the rights of
the EDA under the Redevelopment Agreement are subordinate to the
rights of the Trustee under the Mortgage and Assignment.
2. Waiver of HRA Lien Maturity and Approval of Subordination
Agreement, The EDA agrees that the payment of the Developer Loan
upon the issuance of the Refunding Bonds shall not constitute a HRA
Lien Maturity, as defined in the Redevelopment Agreement. Such
waiver shal] only apply to the refinancing of the Developer Loan by
the issuance of the Refunding Bonds, and shall not app]y to any
subsequent or other event constituting an HRA Lien Maturity under
the Redevelopment Agreement, or impair any right of the EDA
consequent thereto. The EDA acknowledges that its rights under the
Redevelopment Agreement are Subordinate to the rights of the
Trustee under the Mortgage and Assignment. If requested by the
Developer, the appropriate officers of the EDA are authorized and
directed to execute such agreements as may be necessary and
appropriate in the opinion of the officer or officers executing any
such agreement and in the opinion of the attorney for the EDA, to
evidence such subordination and to evidence the waiver of the HRA
Lien Maturity as provided herein.
Passed the lOth day of June, 1996.
Edw. J. Erickson, President
Attest:
Daniel J. Donahue,
Executive Director
c:\wp51\cnh\chardon,eda
SUBORDINATION AGREEMENT
This Agreement is made effective as of the 1-st day of
1996, by and between the NEW HOPE ECONOMIC
DEVELOPMENT AJTHORITY (the "EDA") to and for the benefit of NORWEST
BANK MINNESOTA, NATIONAL ASSOCIATION, as Trustee (the "Trustee")
under an Indenture of Trust, dated as of 1, 1996 (the
"Indenture"), between the City of New Hope, Minnesota (the "City"),
and the Trustee.
Recitals
The Housing and Redevelopment Authority in and for the City of
New Hope, Minnesota (the "HRA"), has entered into a 1984
Redevelopment Agreement, dated January 30, 1985 (the "Redevelopment
Agreement"), with Northridge Properties of New Hope Limited
Partnership, a Minnesota limited partnership (the "Company"), and
Charles P. Thompson and Mary Jane Thompson. The Redevelopment
Agreement provides for the construction by the Company of an
apartment rental housing project (the "Building") on property
described in Exhibit A attached hereto and made a part hereof (the
"Land").
The HRA has assigned all of its interests in and to the
Redevelopment Plan 82-1 within which the Land is located to the
EDA, and such assignment by the HRA to the EDA included all of the
rights of the HRA under the Redevelopment Agreement.
There is to be issued under the Indenture, the Multifamily
Housing Refunding Revenue Bonds (Chardon Court Project), Series
1996 of the City (the "Bonds"), in the principal amount of
$ , the proceeds of which are to be loaned to the COmpany
pursuant to a Loan Agreement, dated as of 1, 1996 (the
"Loan Agreement"), between the City and the Company and used by the
Company to prepay the Developer Loan, as defined in the
Redevelopment Agreement, which financed the acquisition,
construction and equipping of the Building.
The payment of the principal of, premium, if any, and interest
on the Bonds and obligations of the Company arising under the Loan
Agreement are secured by a Combination Mortgage, Security Agreement
and Fixture Financing Statement, dated as of 1, 1996
(the "Mortgage") from the Company to the City which was recorded in
the office of the Registrar of Titles in and for Hennepin County,
Minnesota as Document No. and an Assignment of Rents
and Leases, dated as of 1, 1996 (the "Assignment")
from the Company to the City which was recorded in the Registrar of
Titles in and for Hennepin County, Minnesota as Document No.
The City has assigned all of its interest in the
Mortgage to the Trustee pursuant to an Assignment of Mortgage
Agreement between the City and the Trustee, which was recorded in
the office of the Registrar of Titles in and for Hennepin County,
Minnesota as Document No. , and the City has assigned
all of its interest in the Assignment to the Trustee pursuant to an
Assignment of Rents and Leases between the City and the Trustee
which was recorded in the office of the Registrar of Titles in and
for Hennepin County, Minnesota as Document No.
The original purchaser of the Bonds has required as a
condition to its purchase of the Bonds that the EDA execute a
Subordination Agreement whereby the EDA fully subordinates all
rights and interests of the EDA in or to the Land, the Building and
all rights appurtenant thereto (collectively referred to as the
"Premises") of any kind whatsoever under the Redevelopment
Agreement, to the lien of the Mortgage, the Assignment and any
other lien or security, at any time hereafter acquiCed by the
Trustee in all or any portion of the Premises to secure the payment
of principal of, premium, if any, and interest on the Bonds
(collectively the "Bond Security Documents").
Accordingly, the EDA and the Trustee hereby agree as follows:
1. The EDA acknowledges and agrees that all rights and
interests of the EDA in or to the Premises under the Redevelopment
Agreement are hereby made and shall be fully subordinate and
subject to the respective liens of the Bond Security Documents, all
with the same force and effect as if the Bond Security Documents
were executed, delivered and recorded, and all financial
accommodations secured thereby were fully funded, prior to
imposition of the restricting covenants and limitations imposed
upon the Premises pursuant to the Redevelopment Agreement.
2. The EDA acknowledges receipt of copies of the Mortgage, the
Assignment, the Indenture and Loan Agreement.
3. If, following any Event of Default under any of the Bond
Security Documents, the Trustee accepts a deed to the Premises from
the Company, the EDA agrees that upon the recording of such deed
all rights and interest of the EDA in and to the Premises, whether
under the Redevelopment Agreement or otherwise, including but not
limited to the restrictive covenants therein contained, shall be
automatically null and void without need for the execution or
recording of any other document.
4. The EDA represents to the Trustee that the making, delivery
and performance of this Agreement have been duly authorized by all
necessary action on the part of the EDA and this Agreement, when
executed, shall be the valid and binding obligation of the EDA,
enforceable in accordance with its terms.
5. The EDA and the Trustee acknowledge that the Trustee is not
a party to the Redevelopment Agreement and that this Agreement
contains the entire
agreement between the EDA and the Trustee with respect to any
rights or obligations either might otherwise have with respect to
each other under the Redevelopment Agreement, and-that this
Agreement may be amended only in writing signed by both parties
hereto. By executing and delivering this Agreement, the Trustee
shall not incur any obligations to the EDA of any kind whatsoever,
except those expressly set forth herein, and the Trustee may
administer its obligations under the Indenture with respect to the
Bonds in such manner as it shall deem appropriate.
6. The EDA agrees that the Trustee may, at any time, and from
time to time, extend the maturity, modify the interest rate or
agree to alter any of the terms of payment of any indebtedness
secured by the Bond Security Documents, or release parties liable
for payment thereof, or alter or amend or waive any of the terms
and provisions of the Bond Security Documents in any way, all
without any notice to or consent of the EDA.
7. This Agreement does not in any manner affect the rights and
interests of the EDA or City in and to the Premises under the
Assessment Agreement dated as of January 30,1985, recorded in the
office of the Registrar of Titles in and for Hennepin County,
Minnesota, as Document No. .
8. This Agreement shall be binding upon and inure to the
benefit of the EDA and the Trustee and their respective successors
and assigns.
Executed as of the day and year first above written.
NEW HOPE ECONOMIC
DEVELOPMENT AUTHORITY
By
Its
And
Its
STATE OF MTNNESOTA )
COUNTY OF HENNEPIN )
The foregoing istrument was acknowledged before me this
day of , 1996, by
and , respectively, of the New Hope Economic
Development Authority, a public body corporate and public, on
behalf of such agency.
Notary Public
c:\wp51~c~t~\ char d0n. sub
EDA
REQUEST FOR ACTION
originating Department ! Approved for Agenda Agenda Section
City Manager [ ~10-96 ED^
Sarah Bellefuil, Community )/ Item No.
By: Development Specialist By: 5
RESOLUTION AUTHORIZING PUBLICATION OF NOTICE AND HOLDING OF A PUBLIC
HEARING REGARDING SALE OF 6081 LOUISIANA AVENUE NORTH (IMPROVEMENT
PROJECT #519)
City staff has found a buyer, Daniel J. Langenberger, for the northern unit of the handicap
accessible twin home built at 6073/6081 Louisiana Avenue North. A Purchase Agreement has
been executed, subject to the approval of the EDA. By law, a public hearing regarding the sale
must be held with at least 10 days published notice. The attached resolution authorizes the public
hearing and publication of the notice. The public hearing would then be conducted at the June
24th City Council/EDA Meeting.
Staff recommends approval of the resolution authorizing publication of notice and holding of a
public hearing regarding the sale of 6081 Louisiana Avenue North (Improvement Project #519).
MOTION BY SECOND BY
TO:
Review: Administration: Finance:
RFA-O01
EDA RESOLUTION NO. 96-
RESOLUTION ORDERING PUBLISHED NOTICE AND
PUBLIC HEARING ON SALE OF 6081 LOUISIANA AVENUE NORTH
WHEREAS, the Economic Development Authority in and for the
City of New Hope (EDA) owns certain real estate known as 6081
Louisiana Avenue North, legally described as:
Lot 1, Block 1, Cameron 3rd Addition, Hennepin County,
Minnesota,
(the Property), and
WHEREAS, the Property has been improved by the construction of
one unit of a two unit handicap accessible twinhome, and
WHEREAS, Daniel J. Langenberger has offered to purchase the
Property from the EDA, and
WHEREAS, Minn. Stat. 469.105 requires a public hearing to
determine the advisability of the sale of EDA real property,
preceded by published notice.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of New Hope as follows:
1. That the above recitals are incorporated herein by
reference.
2. That staff are directed to ensure the NOTICE OF PUBLIC
HEARING PER MINN. STAT. §469.105 AUTHORIZING SALE OF
PROPERTY AT 6081 LOUISIANA AVENUE NORTH attached hereto
as Exhibit A is published in the official newspaper of
the City on June 12, 1996.
3. That a public hearing on the advisability of the sale of
Lot 1, Block 1, Cameron 3rd Addition to Daniel J.
Langenberger shall be held in accordance with the Notice
of Public Hearing attached hereto as Exhibit A.
Adopted by the Economic Development Authority in and for the
City of New Hope this lOth day of June, 1996.
Edw. J. Erickson, President
At t est:
Daniel J. Donahue, Executive Director
NOTICE OF PUBLIC HEARING PER MINN. STAT.
§469.105 AUTHORIZING SALE OF PROPERTY
AT 6081 LOUISIANA AVENUE NORTH
ECONOMIC DEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF NEW HOPE
Notice is hereby given that the Economic Development Authority
in and for the City of New Hope, Minnesota, wi]l meet on the 24th
day of June, 1996, at 7:00 o'clock p.m. at the City Hall, 4401
Xylon Avenue North, in said City for the purpose of holding a
public hearing to consider sale of the following described property
to Daniel J. Langenberger:
Lot 1, Block 1, Cameron 3rd Addition,
Hennepin County, Minnesota
6073 Louisiana North, New Hope
PID No. 05 118 21 21 0114
The public may see the terms and conditions of the sale at the
City Hall. At said public hearing, the Economic Development
Authority will decide if the sale is advisable.
A]I persons interested are invited to appear at said hearing
for the purpose of being heard with respect to the sale of the
described property.
Auxiliary aids for persons with disabilities are available
upon request at ]east 96 hours in advance. Please contact the
City Clerk to make arrangements (telephone 531-5117, TDD
number 531-5109).
Dated the lOth day of June, 1996.
s/ Valerie d. Leone
Valerie d. Leone
City Clerk
(Published in the New Hope-Golden Valley Sun-Post on the 12th day
of June, 1996.)
EXHIBIT A
CORRICK ~[ SONDRALL, P.A.
STEVENA. SONDRALL ATTORNEYS AT LAW
MICHAEL R. LAFLEUR
MART~N P. MA~ECHA Edinburgh Executive Office Plaza
WILLIAM C. STRAIT 8525 Edinbrook Cross~g
Suite ~203
Brookl~ P~k, M~neso~ 55443
TELEPHONE (612) 4~5~1
F~ (S12)
May 31, 1996
CDaniel J. Oonahue
New Hope EDA
4401 Xylon Avenue North
New Hope, MN 55428
RE:Sale of 6081 Louisiana North
Our File No. 99.11154
Dear Dan:
The EDA has signed a Purchase Agreement with Daniel Langenberger
for the sale of the second unit of the two unit twinhome at 6081
Louisiana Avenue North, contingent upon approval of the Purchase
Agreementby the governing body of the EDA. As with real
any
property, the EDA must consider the advisability of the sale after
a public hearing, and the hearing must be preceded by 10 days
published notice.
The enclosed Resolution orders the publication and the public
hearing. This Resolution should be on the agenda for the June lOth
yEDA meeting, and will allow notice in time for a hearing on June
24th. Our office will take care of getting the Notice to the New
Hope-Golden Valley Sun-Post in time for publication on June 12th.
Please call if you have any questions.
Sincerely,
~. ~IGNED
,~ECHA
Martin P. Malecha
m3f
cc: Valerie Leone, City Clerk
Kirk McDonald, Management Assistant (w/enc)
Sarah Bellefuil, Administrative Assistant (w/enc)
Steven A. Sondrall, City Attorney