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041194 EDA Official File Copy CITY OF NEW HOPE EDA AGENDA EDA Regular Meeting//3 April 11, 1994 President Edward J. EricSon Commissioner W. Peter Enck Commissioner Gerald Otten Commissioner Terri Wehling Commissioner Marky Williamson 1. Call to Order 2. Roll Call 3. Approval of Minutes of February 28, 1994 4. Discussion Regarding Request for Interest Rate Reduction on EDA Loan by Autohaus of Minneapolis, Inc. and Review of Addendum to Development Contract (Improvement Project No. 467) 5. Resolution Approving Submission of the Minnesota City Participation Program (MCPP) Application to the Minnesota Housing Finance Agency (MHFA) 6. Resolution Approving the Retaining of Springsted to Perform a Financial Analysis on TIF Districts 7. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes February 28, 1994 Meeting //2 CALL TO ORDER President Erickson called the meeting of the Economic Development Authority to order at 8:51 p.m. ROLL CALL Present: Erickson, Enck, Otten, Williamson, Wehling APPROVE MINUTES Motion was made by Commissioner Otten, seconded by Commissioner Enck, to approve the EDA minutes of February 14, 1994. All present voted in favor. Motion carried. IMP. PROJECT 510 President Erickson introduced for discussion Item 4, Resolution Approving Item.4 Multi-Family Housing Policy Loan for New Hope Apartments, 7200-7260 43rd Avenue North (Improvement Project No. 510). Mr. Dan Donahue, City Manager, explained that last fall the EDA established a policy for providing rehabilitation loans to owners of multi- family housing complexes in the City in order to maintain high standards, retain property value, and retain good tenants. Mr. Kirk McDonald, Management Assistant/Community Development Coordinator, stated the policy was developed with the assistance Gary Stout, of Public-Private Ventures, Inc. He noted that prior to the development of the policy the City was approached by the owners of New Hope Apartments for rehab assistance. Mr. McDonald explained that loan documents for the four-building complex at 7200-7260 43rd Avenue North have been developed consistent with the established policy. The total project cost for the rehabilitation is $194,700. The property owners will provide 50 percent of the project cost under the proposal, with the balance of the funds in the form of an EDA loan. The City would approve all construction contracts for the various parts of the project and would advance the loan funds only after the items of work have been completed and the property owner has already paid their half to the contractor. The project involves rehabilitation of basic needs for the complex such as roof replacement, window replacement, installation of a security system, asphalt patching in the parking lot, removal of a concrete surface from a former swimming pool, interior and exterior painting, furnace upgrades, plumbing repairs, and smoke detectors. Mr. McDonald stated Mr. Stout has performed an independent objective financial analysis of the New Hope Apartments financial statements and it is his opinion that private funds are not reasonably available to fund the entire project. Commissioner Enck questioned the soure of EDA funds. Mr. Donahue stated that each year the city may take 10 percent of revenues generated by a tax increment district for the City's administrative New Hope EDA February 28, 1994 Page 1 costs. Those funds go into the EDA account which has been accumu over the years and is now approximately $600.000. Commissioner Enck inquired regarding the property value and incr~ taxes. Mr. Donahue stated these are maintenance items so he does not bI the project will result in a substantial increase in market value. Mr. Gary Stout. Public-Private Ventures. was recognized. He indicate value of the building is less than its first mortgage. He stated the rr value has been declining and with the improvements he feels the vail now stabilize and slowly increase over time. He stated the buildin been losing substantial sums in recent years and maintenance has deferred. With the improvements and reduction in utility costs d window replacements and insulation, the losses should cease. The documents also specify that rents cannot be raised higher tha~ consumer price index rate so that the City will not be faced with tenants. The loan is proposed to be both a second mortgage and in the firs years personally guaranteed. It will be a zero percent loan to be rep the rate of 1 percent per month with no interest (if no defaults) and ~ be repaid after 8-1/3 years. Mr. Stout explained the repayment risk and the advantages of a pro' a loan rather than a grant. President Erickson questioned the bidding process. Mr. Stout pointed out that bids will be required from at least two related entities on each item. The bids will be reviewed by city sta~ the building official. The City has the right to obtain another bid o questionable items. Mr. Stout confirmed that both the taxes and mortgage are current. Commissioner Otten questioned if the owner was restricted from .~ the building. Mr. Stout stated the owner can sell it at any time; however, if this ¢ the EDA loan must be repaid immediately. The EDA and City Manager extended their appreciation to Kirk McDI Steve Sondrall. and Mr. Stout for the work involved with this proje, EDA RESOLUTION Commissioner Enck introduced the following resolution and mov 94-02 adoption: "RESOLUTION APPROVING MULTI-FAMILY HOUSING Pt Item 4 LOAN FOR NEW HOPE APARTMENTS, 7200-7260 43RD AVENUE N (IMPROVEMENT PROJECT NO. 510)". The motion for the adoption foregoing resolution was seconded by Commissioner Wehling and vote being taken thereon, the following voted in favor: Erickson, Otten, Wehling, Williamson; and the following voted against: Absent: None; whereupon the resolution was duly passed and adc signed by the president which was attested to by the executive dir New Hope EDA February 28, Page 2 ADJOURNMENT Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:11 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA February 28, 1994 Page 3 Originating Department Approved for Agenda Agenda Section City Manager EDA -11-94 Kirk McDonald Item No. By: Management Assistant By: 4 DISCUSSION REGARDING REQUEST FOR INTEREST RATE REDUCTION ON EDA LOAN BY AUTOHAUS OF MINNEAPOLIS, INC. AND REVIEW OF ADDENDUM TO DEVELOPMENT CONTRACT (IMPROVEMENT PROJECT NO. 467) Per the enclosed correspondence, Tom Boettcher of Autohaus is requesting consideration for an interest rate reduction on the EDA loan made in 1991 for acquisition of the former Animal Hospital site and for development improvements to the property. The EDA loaned Autohaus $187,500 beginning on April 4, 1991, at an interest rate of 9%. Total monthly payments of $3,379.81 were to have been made to the City under the original loan schedule. Boettcher has exceeded the monthly payments and is almost $25,000 in advance of the agreed upon payment schedule. Boettcher states that at the time of the loan the intent was to provide a better-than-market interest rate and 9 % was an excellent rate at that time. However, due to the drop in interest rates over the past 2-1/2 years, he states that the advantage to this rate no longer exists. He is requesting that the interest rate be reduced to 6.5 % to give them back a proportional advantage. The enclosed attachments show the "original payment schedule," "payments due per original schedule," "payments made to date" and "interest rate assumptions. Payments made to date equal $103,995.67 and payments due per date equal $78,691.35; or payments are $25,304.32 ahead of schedule. Staff is generally agreeable with an interest rate reduction, but feels that 6.5% may be too low in light of the fact that interest rates are now rising (the Finance Director recommends 7.5 %). Another consideration should be the status of the development improvements on the property. While most of the work agreed upon to be completed by October, 1993, has been accomplished, several items have not: landscaping, striping and front retaining wall issue needs to be resolved. Staff recommends that the Addendum to the Development Contract again be revised to reflect the improvements that were actually completed by October, 1993, and to state which remaining improvements will be completed by October, 1994. MOTION BY SECOND BY -! Review: Administration: Finance: RFA-O01 ~ COLLISION & PAINT CENTER Audi January 28, 1993 GU Dan Donahue City of New Hope FORD 4401Xylon Avenue North New Hope, MN 55428 NISSAN Dear Mr. Donahue: HONDA Enclosed please find a copy of the present balance du, on the Autohaus property. As you can see, we have id almost $25,000 in advance of the agreed upon pa nt CHRYSLER schedule, and all payments were made well before the monthly due date. ~ Originally, back in 1989-90, when the finance packa~ as set up for Autohaus on the purchase of the two pie~ of property, we were to have a better-than market in~ st B~W rate of 9%. At the time, this was an excellent rate. However, due to the drop in interest rates over the st two and a half years, the advantage to this rate no er MERCEDES exists. Therefore, I am requesting at this time the he interest rate be brought in line with the genera] te today, which would be 6.5%. This rate would be propo n- VOLVO ate in order to give us back an advantage. Enclosed is the tentative schedule for final settleme f ACURA the loan for Autohaus. I look fo~ard to hearing frol u soon. Thank you. TOYOTA PORSCHE,, ~~ JAGUAR ~.~T~omgs W. Boettcher President 7709 42nd Avenue North Jr Minneapolis, MN 55427 * (612) 555-5707 ~ "ASSUMPTION INTEREST RATE REDUCED TO 6.5% ON MAY 1, 1994" HORTGAGE #OTE THOHAS W. BOETTCHER PROPERTY AT-7675 42ND AVENUE NO., NEW HOPE, NN NAIL TO: 7709 42ND AVENUE NORTH, NEW HOPE, MN 55427 187,500 AT 9%, BEGINNING 4/4/91, 365 DAYS PER YEAR (ASSUHPTION INTEREST RATE REDUCED TO 6.5~ ON NAY 1, 1994) # DAYS SINCE 9114-~601 9215-3604 LAST PAYHENT INTEREST PRINCIPAL REGAINING BALANCE 83,504.33 APR 4, 94 15 3,379.81 223.06 3,070.96 80,433.37 NAY 4, 94 30 3,379.81 429.71 2,950.10 77,485.2? JUN 4, 94 31 3,379.81 427.75 2,952.06 74,531.21 JUL 4, 94 30 3,379.81 398.18 2,981.63 71,549.58 AUG 4, 94 31 3,379.81 394.99 2,98~.82 68,56~.77 SEPT 4,~4 31 3,379.81 378.52 3,001.29 65,563.47 OCT 4, 94 30 3,379.81 350.27 3,029.54 62,533.93 NOV 4, 94 31 3,379.81 345.22 3,034.59 59,499.34 DEC 4, 94 30 3,379.81 317.87 3,061.94 56,437.41 JAN 4, 95 31 3,379.81 311.57 3,068.24 53,369.16 FEB 4, 95 31 3,379.81 294.63 3,085.18 50,283.98 gAR 4, 95 28 3,379.81 250.73 3,129.08 47,154.90 APR 4, 95 31 3,379.81 260.32 3,119.49 44,035.41 gAY 4, 95 30 3,379.81 235.26 3,144.55 40,890.86 JUN 4, 95 31 3,379.81 225.74 3,154.07 37,736.79 JUL 4, 95 30 3,379.81 201.61 3,178.20 34,558.59 AUG 4, 95 31 3,379.81 190.78 3,189.03 31,369.56 SEPT 4,95 31 3,379.81 173.18 3,206.63 28,162.93 OCT 4, 95 30 3,379.81 150.46 3,229.35 24,933.5? NOV 4, 95 31 3,379.81 137.65 3,242.16 21,691.41 DEC 4, 95 30 3,379.81 115.89 3,263.92 18,427.49 JAN 4, 96 31 3,379.81 101.73 3,278.08 15,149.41 FEB 4, 96 31 3,379.81 83.63 3,296.18 11,853.23 MAR 4, 96 28 3,379.81 59.10 3,320.71 8,532.52 APR 4, 96 31 3,379.81 47.10 3,332.71 5,199.82 HAY 4, 96 30 3,379.81 27.78 3,352.03 1,847.79 JUN 4, 96 31 1,857.99 10.20 1,847.79 CO.O0) INTEREST E~RNED TO FINALPAYMENT ............ 7/4/96 6,142.93 "ASSUMPTION INTEREST RATE REDUCED TO 7.5% ON MAY 1, 1994" MORTGAGE NOTE THONAS W. BOETTCNER PROPERTY AT-7675 42ND AVENUE NO., NEW NOPE, MN HAIL TO: 7709 &ZND AVENUE NORTH, NEW HOPE, MN 55427 (ASSUMPTION INTEREST RATE REMAINS AT 7.5Z) # DAYS SINCE 9114-3601 9215-3604 LAST PAYMENT INTEREST PRINCIPAL REHAINING BALANCE 83,504.33 APR 4, 94 15 3,379.81 257.38 3,070.96 80,433.37 MAY 4, 94 30 3,379.81 495.82 2,883.99 77,549.38 JUN 4, 94 31 3,379.81 493.98 2,885.83 74,663.55 JUL 4, 94 30 3,379.81 460.25 2,919.56 71,744.00 AUG 4, 94 31 3,379.81 457.00 2,922.81 68,821.19 SEPT 4,94 31 3,379.81 438.38 2,941.43 65,879.76 OCT 4, 94 30 3,379.81 406.11 2,973.70 62,906.05 NOV 4, 94 31 3,379.81 400.70 2,979.11 59,926.95 DEC 4, 94 30 3,379.81 369.41 3,010.40 56,916.55 dAN 4, 95 31 3,379.81 362.55 3,017.26 53,899.29 FEB 4, 95 31 3,379.81 343.33 3,036.48 50,862.81 MAR 4, 95 28 3,379.81 292.64 3,087.17 47,775.64 APR 4, 95 31 3,379.81 304.32 3,075.49 44,700.15 MAY 4, 95 30 3,379.81 275.55 3,104.26 41,595.89 dUN 4, 95 31 3,379.81 264.96 3,11&.85 38,481.04 JUL 4, 95 30 3,379.81 237.21 3,142.60 35,338.44 AUG 4, 95 31 3,379.81 225.10 3,154.71 32,183.73 SEPT 4,95 31 3,379.81 205.01 3,174.80 29,008.93 OCT 4, 95 30 3,379.81 178.82 3,200.99 25,807.94 NOV 4, 95 31 3,379.81 164.39 3,215.42 22,592.53 DEC 4, 95 30 3,379.81 139.27 3,240.54 19,351.98 JAN 4, 96 31 3,379.81 123.27 3,256.54 16,095.44 FEB 4, 96 31 3,379.81 102.53 3,277.28 12,818.16 MAR 4, 96 28 3,379.81 73.75 3,306.06 9,512.10 APR 4, 96 31 3,379.81 60.59 3,319.22 6,192.88 MAY 4, 96 30 3,379.81 38.18 3,341.63 2,851.24 ~UN 4, 96 31 1,857.99 18.16 1,839.83 1,011.42 · JUL 4, 96 30 1,017.65 6.23 1,011.42 0.00 INTEREST EARNED TO FINAL PAYMENT ............ 7/4/96 7,194.90 "ASSUMPTION INTEREST REMAINS AT 9%" MORTGAGE NOTE THOMAS W. BOETTCHER PROPERTY AT-7675 42ND AVENUE NO., NEW HOPE, MN MAIL TO: 7709 42ND AVENUE NORTH, NEW HOPE, NN 55427 (ASSUMPTION INTEREST RATE REMAINS AT # OAYS SINCE 9114-3601 9215-3604 LAST PAYMENT INTEREST PRINCIPAL REMAINING BALANCE 83,504.33 APR 4, 94 15 3,379.81 308.85 3,070.96 80,433.37 MAY 4, 94 30 3,379.81 594.99 2,78~.82 77,6~8.55 JUN 4, 94 31 3,379.81 593.53 2,786.28 74,862.27 JUL 4, 94 30 3,379.81 553.78 2,826.03 72,036.23 AUG 4, 94 31 3,379.81 550.63 2,829.18 69,207.06 SEPT 4,94 31 3,379.81 529.01 2,850.80 66,356.26 OCT 4,;'94 30 3,379.81 490.85 2,888.96 63,~67.30 NOV 4, 94 31 3,379.81 485.13 2,894.68 60,572.62 DEC 4, 94 30 3,379.81 448.07 2,931.74 57,6~0.89 JAN 4, 95 31 3,379.81 440.60 2,939.21 54,701.67 FEB 4, 95 31 3,379.81 418.13 2,961.68 51,739.99 MAR 4, 95 28 3,379.81 357.22 3,022.59 48,717.40 APR 4, 95 31 3,379.81 372.39 3,007.42 45,709.98 MAY 4, 95 30 3,379.81 338.13 3,041.68 42,668.30 JUN 4, 95 31 3,379.81 326.15 3,053.66 39,614.6~ JUL 4, 95 30 3,379.81 293.04 3,086.77 36,527.87 AUG 4, 95 31 3,379.81 279.21 3,100.60 33,427.27 SEPT 4,95 31 3,379.81 255.51 3,124.30 30,302.97 OCT 4, 95 30 3,379.81 224.16 3.155.65 27 147.32 NOV 4, 95 31 3,379.81 207.51 3172.30 23 975.02 DEC 4, 95 30 3,379.81 177.35 3202.46 20 772.56 JAN 4 96 31 3,379.81 158.78 3 221.03 17 551.53 FEB 4 96 31 3,379.81 134.16 3 245.65 14 305.88 MAR 4 96 28 3,379.81 98.77 3 281.04 11.024.84 APR 4 96 31 3,379.81 84.27 3 295.54 7729.31 MAY 4 96 30 3,379.81 57.18 3 322.63 4.406.67 JUN 4 96 31 1,857.99 33.68 1 824.31 2.582.37 JUL 4 96 30 2,601.47 19.10 2 582.37 (0.00) INTEREST EARNED TO FINAL PAYMENT ............ 6/4/96 8,830.19 "PAYMENTS MADE TO DATE" HORTGAGE NOTE THOt4AS g. BOETTCHER PROPERTY AT-7675 62ND AVENUE NO., NEg HOPE, MN MAIL TO: 7709 62ND AVENUE NORTH, NEW HOPE, MN 55627 187,500 AT 9~, BEGINNING 6/6/91, 365 OAYS PER YEAR # DAYS SINCE 9116-3601 9215-3606 LAST PAYMENT INTEREST PRINCIPAL APR 4 91 187,500.00 MAY 3 91 29 6,000.00 1,360.75 2,659.25 18Z~,860.75 MAY 31 91 28 6,000.00 1,276.16 2,723.8~ 182,116.91 JUL 15 91 65 6,000.00 2,020.75 1,979.25 180,137.66 AUG 12 91 28 6,000.00 1 263.69 2,756.31 177,381.35 SEP 11 91 30 6,000.00 1 312.16 2,687.86 176,693.69 OCT 8, 91 27 5,000.00 1 163.03 3,836.97 170,856.52 NOV 6, 91 29 5,000.00 1 221.76 ~,778.26 167,078.26 DEC 10,91 34 5,000.00 1 600.71 3,599.29 163,678.97 JAN 7, 92 28 5,000.00 1 128.68 3,871.32 159,607.65 FEB 6, 92 30 5,000.00 1 180.66 3,819.36 155,788.31 MAR 4, 92 27 5,000.00 1 037.17 3,962.83 151,825.68 MAR 30,92 26 6,500.00 973.35 3,526.65 168 298.83 MAY 6, 92 37 4,000.00 1,352.97 2,647.03 165 651.80 JUN 2, 92 27 4,000.00 969.68 3,030.32 142 621.48 JUL 1, 92 29 6,000.00 1,019.86 · 2,980.16 139 641.32 AUG 4, 92 34 3,800.00 1,167.49 2,632.51 137,008.81 SPT 2, 92 29 3,600.00 979.71 2,620.29 136 388.52 ~OCT 2, 92 30 3,600.00 996.11 2,605.89 131 782.63 NOV 2, 92 31 3,600.00 1,007.32 2,592.68 129,189.95 NOV 30-92 28 3,600.00 891.94 2,708.06 126 681.89 JAN 5, 93 36 3,600.00 1,122.74 2,6~rr.26 126 004.63 FEB 1, 93 27 3,600.00 825.57 2,774.43 121 230.20 FEB 26, 3 25 3,600.00 747.31 2,852.69 118,377.51 MAR 29 93 31 3,600.00 904.86 2,695.14 115,682.37 APR 27 93 29 3,600.00 827.21 2,772.79 112,909.58 JUN 2, 93 36 3,600.00 1,016.19 2,383.81 110,525.77 JUN 21,93 19 3,400.00 517.81 2,882.19 107,643.58 JUL 27,93 36 3,400.00 955.52 2,444.48 105,199.10 AUG 25,93 29 3,400.00 752.25 2,647.75 102,551.35 SEP 29,93 35 3,400.00 885.03 2,514.97 100,036.38 OCT 25,93 26 3,400.00 641.33 2,758.67 97,277.71 NOV 24,93 30 3,400.00 719.59 2,680.41 96,597.30 DEC 20,93 26 3,400.00 606.66 2,793.56 91,803.76 JAN 25,94 36 3,400.00 814.92 2,585.08 89,218.68 FEB 23,94 29 3,400.00 637.97 2,762.03 86,456.65 MAR 16,94 21 3,400.00 447.68 2,952.32 83,504.33 103,995.67 "PAYMENTS DUE, PER ORIGINAL SCHEDULE" HORTGAGE NOTE THOHAS W. BOETTCNER PROPERTY AT-7675 42ND AVENUE NO., NEW HOPE, MN MAIL TO: 7709 42ND AVENUE NORTH, NEW HOPE, MN 55427 9114-3601 9114-1154 DUE DATE TOTAL PAYMENT INTEREST PRINCIPAL BALANCE APR 4 91 187,500.00 MAY 4 91 3379.81 1,386.99 1,992.82 185,507.18 JUN 4 91 3379.81 1,417.99 1,961.82 183,545.36 JUL 4 91 3379.81 1,357.73 2,022.08 181,523.28 AUG 4 91 3379.81 1,387.53 1,992.28 179,531.00 SEP 4 91 3379.81 1,372.31 2,007.50 177 523.50 OCT 4 91 3379.81 1,313.19 2,066.62 175 456.88 NOV 4 91 3379.81 1,341.16 2,038.65 173 418.23 DEC 4 91 3379.81 1,282.82 2,096.99 171 321.24 JAN 4 92 3379.81 1,309.55 2,070.26 169 250.98 FEB 4 92 3379.81 1,290.19 2,089.62 167 161.36 MAR 4 92 3379.81 1,192.05 2,187.76 166 9?3.60 APR 4 92 3379.81 1,257.59 2,122.22 162r851.38 MAY 4 92 3379.81 1,201.36 2,178.45 160.672.93 JUN 4 92 3379.81 1,224.80 2,155.01 158517.92 JUL 4 92 3379.81 1,169.39 2,210.42 156.307.50 AUG 4 92 3379.81 1,191.52 2,188.29 154.119.21 SEP 4 92 3379.81 1,174.8~ 2,204.97 151 914.24 OCT 4 92 3379.81 1,120.68 2,259.13 149 655.11 NOV 4 92 3379.81 1,106.01 2,275.80 147 379.31 DEC 4 92 3379.81 1,087.22 2,292.59 145 086.72 JAN 4 93 3379.81 1,105.99 2,273.82 142 812.90 FEB 4 93 3379.81 1,091.64 2,288.17 140 524.?3 MAR 4 93 3379.81 970.20 2,409.61 138 115.12 APR 4 93 3379.81 1,055.73 2,324.08 135 791.04 MAY 4 93 3379.81 1,004.48 2,375.33 133 415.71 JUN 4 93 3379.81 1,019.81 2,360.00 131 055.71 JUL 4 93 3379.81 969.45 2,410.36 128,645.35 AUG 4 93 3379.81 983.34 2,396.47 126,248.88 SEP 4 93 3379.81 965.03 2,414.78 123,834.10 OCT 4 93 3379.81 916.03 2,463.78 121,370.32 NOV 4 93 3379.81 927.73 2,452.08 118,918.24 DEC 4 93 3379.81 879.67 2,500.14 116,418.10 JAN 4 94 3379.81 889.88 2,489.93 113,928.17 FEB 4 94 3379.81 870.85 2,508.96 111,419.21 MAR 4 94 3379.81 769.25 2,610.56 108,808.65 78,691.35 MORTGAGE NOTE THOMAS W. BOETTCHER PROPERTY AT-7709 42ND AVENUE NO., NEW HOPE, MN INTEREST RATE: 9.00% MONTHLY PAYMENT DUE DATE: 4TH DAY OF MONTH DUE DATE TOTAL PAYMENT INTEREST PRINCIPAL BALANCE JUL 4 94 3379.81 747.71 2,632.10 AUG 4 94 3379.81 752.51 2,627.30 SEP 4 94 3379.81 732.43 2,647.38 OCT 4 94 3379.81 689.22 2,690.59 NOV 4 94 3379.81 691.63 2,688.18 DEC 4 94 3379.81 649.43 2,730.38 JAN 4 95 3379.81 650.21 2,729.60 FEB 4 95 3379.81 629.35 2,750.46 MAR 4 95 3379.81 549.45 2,830.36 APR 4 95 3379.81 586.69 2,793.12 MAY 4 95 3379.81 547.10 2,832.71 JUN 4 95 3379.81 543.68 2,836.13 JUL 4 95 3379.81 505.17 2,874.64 AUG 4 95 3379.81 500.03 2,879.78 SEP 4 95 3379.81 478.02 2,901.79 OCT 4 95 3379.81 441.13 2,938.68 NOV 4 95 3379.81 .433.38 2,946.43 DEC 4 95 3379.81 397.60 2,982.21 JAN 4 96 3379.81 388.06 2,991.75 FEB 4 96 3379.81 364.19 3,015.62 MAR 4 96 3379.81 319.19 3,060.62 APR 4 96 3379.81 317.87 3,061.94 MAY 4 96 3379.81 285.03 3,094.78 JUN 4 96 3379.81 270.94 3,108.87 JUL 4 96 3379.81 239.27 3,140.54 AUG 4 96 3379.81 223.30 3,156.51 $EP 4 96 3379.81 199.24 3,180.57 OCT 4 96 3379.81 169.35 3,210.46 NOV 4 96 3379.81 150.52 3,229.29 DEC 4 96 3379.81 121.84 3,257.97 JAN 4 97 3379.81 101.07 3,278.74 FEB 4 97 3379.81 76.28 3,303.53 MAR 4 97 3379.81 46.09 3,333.72 APR 4 97 3368.19 25.55 3,342.64 "ORIGINAL PAYMENT SCHEDULE" r MORTGAGE NOTE THOMAS W. BOETTCHER PROPERTY AT-7709 42ND AVENUE NO., NEW HOPE, MN INTEREST RATE: 9.00% MONTHLY PAYMENT DUE DATE: 4TH DAY OF MONTH DUE DATE TOTAL PAYMENT INTEREST PRINCIPAL BALANCE APR 4 91 MAY 4 91 3379.81 1,386.99 1,992.82 JUN 4 91 3379.81 1,417.99 1,961.82 JUL4 91 3379.81 1,357.73 2,022.08 AUG 4 91 3379.81 1,387.53 1,992.28 SEP 4 91 3379.81 1,372.31 2,007.50 OCT 4 91 3379.81 1,313.19 2,066.62 NOV 4 91 3379.81 1,341.16 2,038.65 DEC 4 91 3379.81 1,282.82 2,096.99 JAN 4 92 3379.81 1,309.55 2,070.26 FEB 4 92 3379.81 1,290.19 2,089.62 MAR 4 92 3379.81 1,192.05 2,187.76 APR 4 92 3379.81 1,257.59 2,122.22 MAY 4 92 3379.81 1,201.36 2,178.45 JUN 4 92 3379.81 1,224.80 2,155.01 JUL 4 92 3379.81 1 ~169.39 2,210.42 AUG 4 92 3379.81 1.191.52 2,188.29 SEP 4 92 3379.81 1.174.84 2,204.97 OCT 4 92 3379.81 1 120.68 2,259.13 NOV 4 92 3379.81 1 104.01 2,275.80 DEC 4 92 3379.81 I 087.22 2,292.59 JAN 4 93 3379.81 1 105.99 2,273.82 FEB 4 93 3379.81 I 091.64 2,288.17 MAR 4 93 3379.81 970.20 2,409.61 APR 4 93 3379.81 1,055.73 2,324.08 MAY 4 93 3379.81 1,004.48 2,375.33 JUN 4 93 3379.81 1,019.81 2,360.00 JUL 4 93 3379.81 969.45 2,410.36 AUG 4 93 3379.81 983.34 2,396.47 SEP 4 93 3379.81 965.03 2,414.78 OCT 4 93 3379.81 916.03 2,463.78 NOV 4 93 3379.81 927.73 2,452.08 DEC 4 93 3379.81 879.67 2,500.14 JAN 4 94 3379.81 889.88 2,489.93 FEB 4 94 3379.81 870.85 2,508.96 MAR 4 94 3379.81 769.25 2,610.56 APR 4 94 3379.81 831.72 2,548.09 MAY 4 94 3379.81 786.04 2,593.77 JUN 4 94 3379.81 792.41 2,587.40 ADDENDUM TO CITY OF NEW HOPE DEVELOPMENT CONTRACT 1. Parties. The parties to this Addendum are the City of Hope (hereafter City), Autohaus of Minneapolis, (hereafter Autohaus) and Thomas W. Boettcher, individu~ (hereafter Boettcher). 2. Property. The real property (hereafter Property) to which this Addendum applies is owned in fee by Boettcher an( located in Hennepin County, Minnesota, legally described (See attached Exhibit A) 3. Purpose. This Addendum shall modify the that cer' Development Contract dated April,4, 1991 (hereafter Contr~ entered into by the parties. Autohaus and Boett, acknowledge and agree that they are in breach of performance conditions of the Contract and in considera' for the City's agreement not to immediately pursue remedies under the terms of the Contract Boettcher Autohaus have agreed to enter into this Addendum. 4. Unperformed Conditions. Specifically, Autohaus and Boett, acknowledge and agree that they have failed to perform all requirements of paragraphs 2.A) through I) and 3 of Contract. With respect to the work required by ti provisions the parties hereto agree that Autohaus Boettcher will perform the work as follows: a.) The installation of concrete curb from the most south, wall of the building northward to County Road No. 9 si be completed by October 31, 1993. The remainder of curbing as shown on the site plan shall be installe~ October 31, 1994, except that curbing around perimeter of the unpaved body shop and repair sto area shall be installed if and when said body shop repair storage area is paved as set forth below. ' curbing shall be of a surmountable type as approve( the City. Autohaus and Boettcher shall submit a dia~ of said curbing for approval to the City prior instal 1 at ion. b.) All plantings shown on the site plan north of building's most southerly wall shall be installe¢ October 31, 1993. All other plantings shown on the plan shall be installed by October 31, 1994. 1 c.) The six-foot opaque security fence around the perimeter of the body shop and collision repair storage area shall be installed by October 31, 1994. The existing fencing shall remain in place until the new security fence is installed. d.) The installation of lighting shown on the site plan shall be completed by October 31, 1993. However, the parties agree that the existing lighting for the collision repair area as of the date of this Addendum is adequate and no further lighting is required notwithstanding the lighting required by the site plan. e.) All planted areas completed in 1993 will be sprinkled by October 31, 1993. All planted areas completed in 1994 will be sprinkled by October 31, 1994. f.) The installation of the outdoor trash enclosures will be completed by October 31, 1994. g.) The front display area will be completed by October 31, 1993. However, the parties agree that the front display area can be paved with concrete and bituminous. h.) The islands in the transport lane area will be installed by October 31, 1994. i.) Erosion control measures of grading and seeding in a form and manner approved by the City Engineer shall be completed by October 31, 1993. The erosion control measures shall apply to all unpaved areas. j.) The City agrees to waive indefinitely the requirement in the Contract that Autohaus and Boettcher pave the body shop and repair storage area. However, if Autohaus and Boettcher elect to pave the body shop and repair storage area at some point in the future, then Autohaus and Boettcher will be required to install, prior to said paving, the public storm water drainage improvements required by paragraph 3 of the Contract. And, prior to installing said storm water drainage improvements, Autohaus and the City must agree on the responsibility for payment of the cost of said storm water drainage improvements. 5. Nonmerger. The parties agree that the terms of the Cont and this Addendum shall survive the satisfaction, releas termination of the April 4, 1991 Mortgage, Security Agree~ and Fixture Financin9 Statement given by Boettcher, Autohaus and Boettcher shall be required to perform all ~ set forth above even if said Mortgage, Security Agreement Fixture Financing Statement is satisfied, released, terminated. 6. Security. The subdivision bond or other security require Autohaus and Boettcher to ensure their performance under Contract shall be reduced to $1,000.00. 7. Effect of Addendum. The parties agree that this Adde~ sha]] not change the other provisions of the Contract, wi shall remain in full force and effect. This Addendum shal construed as supplemental to and not inconsistent with Contract. The parties further agree that a breach of Addendum shall also constitute a breach of the April 4, Mortgage, Security Agreement and Fixture Financing Statel given by Boettcher to secure the April 4, 1991 Mortgage I executed by Boettcher. Autohaus further agrees that assignment of the Certificate of Deposit given as finan, security to insure performance of the Contract shall sub to reduction as set forth above, also extend to se, performance under this Addendum. Its M a/y'6 r Dated: ~ '~'~/-~ By ~~ '[ts Ci t,v~l~nager ~~~/"' C Dated: ~h '/~ Th~B°ettc~'V'du 3 STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) Th.e~foregoing was acknowledged before me this day of , 1993, by Edw. J. Erickson and Daniel J. Donahue{' the Mayor and City Manager, respective]y, of the City of New Hope, a Minnesota municipal corporation, on behalf of said municipal corporation. ~ I~e~ ~A~ PUBLIC- MINNES~ ~ ~-~i~-~l~ HENNEPINCOUNTY ~ ~o{~ry Public ' ~ ~ C~m. ~p, June 12, 1 ~ STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) Th~oregoJng was acknowledged be~re me thJs ~~ day of ~ ~ , 1993, by ~~ ~. ~o~~ , the President of Autohaus of M~nneapol~s, Inc., a MJnnesota corporatJon, on behalf of saJd corporation. STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) The foregoing was acknowledged before me this ~-~,?- ~ day of ~.,,vr/.. , 1993, by j'~J~--,JiJ~ HENNEPIN COUNTY j N o 1: a r y~' P,,Iz'b 1 i c This Document: draft:ed by: CORR[CK & SONDRALL, A PARTNERSHIP OF PROFESSZONAL CORPORATZONS 8525 Ed~nbrook Crossing, #203 Brooklyn Park, MN 55443 (612) 425-5671 c:\wp51\autohaus, add EDA REQUF_ T FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA 4-11-94 Sarah Bellefuil ],) Item No. ByAdministrative: Analyst By:~// 5 RESOLUTION APPROVING SUBMISSION OF THE MINNESOTA CITY PARTICIPATION PROGRAM (MCPP) APPLICATION TO THE MINNESOTA HOUSING FINANCE AGENCY (MHFA) The MCPP is a program through the MHFA in which the MHFA is able to sell mortgage revenue bonds on behalf of participating cities to meet locally-identified housing needs. The proceeds from the bonds provide below-market interest rate mortgage loans for Iow and moderate income first-time homebuyers. This resource is available to cities throughout the state. This year the local housing pool for mortgage revenue bonds is estimated to be around $43 million. Cities can apply for an allotment of between $250,000 to $4 million. The City of New Hope is applying for 92 million. For 1994, the MCPP program term is six months. During the first four months, participating cities have exclusive use of their individual allotment. During the final two months, the individual allotments will go into a statewide pool that will be available to all MCPP participating cities. This allows cities with higher demands to access funds that were not used during the preceding four month period. The program term will begin shortly after the bond sale which should occur during the summer of 1994. In order for persons to apply for money through this program they must: a) be a first-time homebuyer; b) occupy the home within 60 days of mortgage closing; c) meet certain household income requirements (931,744 or less (for a family of four); d) and purchase an existing home for 985,000 or less, or build new for 995,000 or less. The fee for participating in the program is 920 for each 9100,000 in allotment provided. Also, an application deposit of 1% of the allocation amount specified in the agreement. The 1% deposit is refunded within a month of the closing of the bond sale. MOTION BY (~~ SECOND BY ~ Review: Administration: Finance: RFA-O01 ~ Page 2 April 11, 1994 Council Meeting In order to participate in the MCPP, cities must arrange with local lenders to originate mortgage Io; ~der the program. These lenders will be required to enter into a contract with the MHFA as to program oan origination requirements. Each city applying for the MCPP must have at least one lender. The application is due by Friday, April 15, 1994. The application packet from the MHFA and the application for funding is enclosed. Staff recommends approval of the resolution. EDA RESOLUTION NO. 94 RESOLUTION APPROVING SUBMISSION OF THE MINNESOTA CITY PARTICIPATION PROGRAM (MCPP) APPLICATION TO THE MINNESOTA HOUSING FINANCE AGENCY (MHFA) WHEREAS, the City of New Hope, through their Housing Action Plan, promotes the purchase of homes in New Hope to modest income first-time homebuyers, avoiding concentrating such housing in a single area; and WHEREAS, the City of New Hope, through their Housing Action Plan, wishes to maintain a high quality residential environment through rehabilitation or where necessary, redevelopment of substandard units; and NOW, THEREFORE, BE IT RESOLVED that the Economic Development Authority in and for the City of New Hope approves the submittal of the application for funding to the Minnesota Housing Finance Agency for inclusion in the Minnesota City Participation Program. Adopted by the Economic Development Authority in and for the City of New Hope, this 11th day of April, 1994. President Attest: Executive Director APPLICATION FOR FUNDING 1994 MINNESOTA CITY PARTICIPATION PROGRAM NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY I. ELIGIBLE ORGANIZATION (a) Name and address of your organization: New Hope Economic Development Authority 4401 Xylon Avenue North New Hope. MN 55428 Co) Name and phone number of your contact person: Sarah 8ellefuil, Administrative Analyst or Kirk McDonald. Management Assistant/Community Development Coordinator Phone: 531-51 O0 or FAX: 531-5136 (c) Designate a probable representative to attend thc bond allocation meeting in late Ap~ of early May. '~ Sarah Bellefuil. Administrative Analyst (d) Type of organization: Economic Development Authority (e) Amount of funds requested, and the estimated number of loans to be provided. Funds requested Estimated number of Loans $2,000,000 25 (f) Information on any unused Mortgage Revenue Bond (MRB) or Mortgage Credit Certificate (MCC) resources still available in your community (no-MHFA). None II. ORIGINATING LENDER (PLEASE NOTE: The following lenders have sh, interest, but have not provided documentation participate in the program. Letters of intent are du the City by April 12, 1994.) 1. Contact: Address: Marquette Bank New Hope (see Attachment A! ' 4301 Winnetka Avenue North New Hope, MN 55428 Phone #: 5368263 3. Contact: Address: Norwest Bank (see .Attachment B) 8320 42nd Ave. North New Hope, MN 55427 Phone #: 535-6770 III. HOUSING PLAN The plan must contain the following: (see Attachment C) (a) A description of your city's principle housing needs. (b) The data sources or methods used to determine the described needs. (c) The specific plan developed to meet your identified housing needs, including the resources to be assessed, and the methods to carry out the plan. (d)- Description of any target areas to be addressed in the plan. The plan does not mention any specific areas. However, neighborhoods that are blighted and scattered site housing areas will be targeted. (e) How the plan will be implemented and the administrative capacity of your city to do so. The New Hope Economic Development Authority will implement the plan. IV. PROGRAM SPECIFICS (a) How your program fits into your comprehensive housing plan. The New Hope Housing Action Plan promotes providing housing for Iow and moderate income families and addresses the need to attract young persons to the City. The Housing Plan also specifies the need to redevelop areas that have substandard. housing. The MCPP addresses these concerns by focusing on the needs of first-time h'omebuyers and encouraging homeownership. It also enables young or modest income persons to purchase homes in the City of New Hope and correct existing housing deficiencies. (b) Borrower income limits. 80% of HUD area median income (currently $39,680 for a family of four). (c) Home purchase price limits. Existing: $85,000 New $95,000 (d) Targeting of specific population groups, if any. The City of New Hope will make the program available City-wide to any eligible first- time homebuyer. The City will make sure that notices are sent to area realtors informing them of the City's participation in the program. Information on the program will also be published in the City newsletter, local newspapers, and on local cable stations. (e) Targeting of area of housing stock, if any (e.g., rehab areas, new construction developments, etc.) New Hope is a fully developed second ring suburb. Therefore, the City will concentrate on blighted neighborhoods and housing that qualifies for the New Hope Scattered Site Housing Acquisition Program. (f) Any optional program enhancements such as subsidy funds, waived fees, use of tax- forfeit properties, etc. There will be no optional program enhancements. (g) Any proposed schedule for release of funds. The schedule for release of funds within the six-month set-side period will immediate. V. ECONOMIC VIABILITY Describe why you feel there is sufficient demand in your market to use the MCPP funds reque in this application. Indicate the data sources used to project demand, such as real estate s over the past year; realtor, builder or lender information; indicators of a housing shortage; recent area business/economic expansion. This is the first year the City of New Hope has applied for the Minnesota City Participa Program. We are making this application for two reasons. First, due to the positive respo in surrounding communities, the City believes that this program would be useful and benef in New Hope. In MIS area 575, which includes New Hope, Crystal, and Robbinsdale, over; homes were sold in the past year. Of these, 62% sold for $90,000 or less. Secondly, New Hope has an abundance of homes priced under $85,000 that are availabl~ first-time homebuyers. The report presented in Attachment D shows real estate activit New Hope from April 1993, to April 1994. Over 200 single family residences were sol New Hope last year. Of these, 36% sold for $90,000 or less. VI. NEW CONSTRUCTION REQUIREMENTS Only newly constructed homes on lots designated as part of the New Hope Scattered: Acquisition Program will be allowed to qualify for New Hope's MOPP. The New Hope Scatt~ Site Acquisition Program uses federal funds to acquire properties that are substandard unoccupied. The substandard homes are then demolished and the City either builds a ~ home on the site, which is then sold, or the cleared site is sold in a bidding proc, Therefore, category "b" will be incorporated into New Hope's program. VII. SIGNATURES Daniel J. Donahue New Hope Economic Development Authority , Executive Director 531-5100 ~ (PLEASE NOTE: The following lenders have shown Attachment A: Letter from Marquette Bank New Hope <----- interest, but have not provided documentation to ~ participate in th~ program. Letters of intent are due Attachment B: Letter from Norwest Bnnk ~- ' the City by April 12, 1994.) Attachment C: New Hope Housing Action Plan ~ Attachment D: List of homes sold in New Hope between 4/1/93 and 4/1/94 Attachment E: Resolution from the New Hope F.~onomic Development Authority housing action plan. JUNE 1976 '~~-'~'_~.,L.~~~ urban planning · design · market research · 41 ~r'-~m,m'..m-m~?_,_~_~-- ,-m.--:"*."l-~l--'r"'-'c"~m~ 2101 hennepin avenue south minneapo&s _._L-~~J~~,~EL1:~J~:~rl minnesota 55405 (612) 871-2661 June 16, 1976 TO: New Hope Community Development Management Comml tree RE: Housing Action Plan This letter transmits the proposed Housing Action Plan which has been Formulated as part of the current City's Community Development Program effort. This document reiterates the residential and housing policies contained in the City-wide Comprehensive Plan and when viewed in conjunction with the Comprehensive Development Framework Area Plans provides a direction and course of action For the City in the specialized field of housing improvement. In view of recent manditory planning legislation enacted For the Twin Cities Metro- poiltan Area, it is recommended that this document be processed with the City's revised Comprehensive Plan and be submitted to the Metropolitan Council For review and comment. This suggestion is made with the recognition that New Hope will not have received its Metropolitan Systems Statement which is required For full compliance under the New Planning Act. However, it is anticipated that this document, when combined with the ComprehensJve Plan, w~ll to a ma[or extent meet the required stipulations to be imposed on communirles in the near Future. The preparation of this report and prior aspects of New Hope's housing activities addressed as part of the 1975-76 Community Development Program have been a combined product of Midwest Planning and Research, Inc. and Minnesota Community Develop- ment Services. In thls regard, Mr. Wayne Cox, President of Minnesota Community Development Services, should be recognized For his valued contributions to our program. His background and experience have contributed substantially to what we consider a realistic, action-oriented program for New Hope. It has been our sincere pleasure to work for the C[ty of New Hope in this undertaking as well as the other aspects of the 1975-76 Community Development Program. We would hope that there would be opportunity in the future to provide implementation services ~'o bring about a realization and effectuation of the plans which we have assisted the community in formulating. Very truly yours, MIDWEST PLA N N I N G A N?..~.~A R~,/.I N C. President RESIDENTIAL GOALS · Provide safe, healthy and attractive residential environments offer a broad and Full choice of housing types. · Maintain and where necessary, strengthen the character of ind neighborhoods. · Provide sufficient housing and sufficient housing sizes, types a ,les to meet the needs of all segments of the population, notedly g~ with special[zed housing needs, such as the elderly. · Encourage a creative approach (as opposed to traditional subdi ~ design~ to the use of land and related residential development. · Provide housing in cost ranges affordable to Iow and moderate ~e households (as regionally defined). RESIDENTIAL POLICIES 1. Plan and develop residential neighborhoods according to establ planning district boundaries. 2. Protect Iow density residential neighborhoods From encroachme intrusion of incompatible higher use types and by adequate buF ! ~-.~J separation From other residential as well as non-residential use ~arias. 3. Protect residential neighborhoods from penetration by through I :. 4. Provide for access to major streets on the periphery of resident] neighborhoods. 5. Provide high density development with reasonable, but not nec i[y direct, access to major thoroughfares. 6. Protect res[dentlal development From adverse environmental ~m including noise, air, and visual pollution. Newresident~al d, shall be prohibited when noise and/or air pollution exceed acc standards and the negative impacts are not correctable by cons site planning or other techniques. 7. Prohibit residential development on wetlands, Flood plains and natural features that perform important protection functions in " natural state. 19. Encourage an.d promote adequate living space and fully utilized housing through the provision o£ a range of choice among housing types and options. 20. Avoid the emergence of a polarizing age d[strlbution by continuing to attract young persons to the community through provisions for housing styles which reflect related life styles and economic con- struction costs. 21. Pursue a program of providing housing for Iow and moderate income families and individuals which avoids concentrating such.housing a single project or area. 22. Encourage developments that include both subsld[zed and regular market rate housing within a single planned residential area. 23. Encourage use of townhouses,' duplexes, garden apartments and scattered site single family homes for ~amily subsidized housing. 24. Establish administrative and poi'icy mechanisms which will facilitate the development of Iow and modera~'e inca'ne housing and correct existing housing deficiencies. '4 9. Density incentives shall be offered For the development of r ensity, owner-type units, such as townhouses, quadraminiums, pati ~es and cluster housing. (Generally speaking, mid-density ho~ can be defined as any density greater than normally found in neigh ,ods of single Family detached homes and lower than that Found ;rtmen~ developments. Also, mid-density development~ by its very re, general ly represents "owner'-type" housing. ) 10. Minimum lot area per unit requirements For two Family, tow ~e, quadramlnlum, patio home and slm~lar units shall not excee ~parable requirements For single Family detached units. 11. Per unit off-streett enclosed parking requirements for town~ and similar units shall not exceed comparable requirements For s family detached units. 12. All mid-density development shall be accomplished on a pll ~ unit basis and shall specifically include provision for traffic circ ~n that would mitigate any adverse affects on existing single fi residential neighborhoods. 13. The City shall encourage development of the larger remainl developed single family residential parcels at a mid-density in order h ~ maxlm~ze opportunities to diversify housing choice. 14. The City shall encourage any commercial or industrial zone :l converted to a residential classification to be developed at Jens;ty to provide additional housing choice. 15. With respect to mid-density, owner-type housing~ the deve .~nt of two-bedroom units shall be encouraged in order to achieve e diverse community population profile. 16. The City shall ensure that all housing assistance available, sta~e or federal~ be made available and accessible to community er~ts. 17. The City newsletter shall be utilized as a primary vehicle New Hope residents o£ housing program availability. 18. Detailed information regarding housing programs shall be m~ v~il:z ~ through the City Administrative Offices. 6 REGIONAL SETTING New Hope is a second ring suburban community which experienced rapid development during the decade of the 1960's. Characteristic of suburban construction trends of that time, resldent[al development in New Hope · today consists primarily of single Family homes or apartments. Within the context of the near northwest suburban sector, New Hope can be described as a maturing Family community. The adjacent communities of Crystal and Robblnsdale which experienced major growth much earlier than New Hope, have reached a mature stage of development. In this regard, although these communlt[es likewise are "family" communities, they also have substantial numbers of elderly residents. While the growing communities of Brooklyn Park, Plymouth and Maple Grove are For the most part family communities as well, they are oriented particularly to younger households. Given its position w~thin the northwest sector, New Hope has geared its housing responses toward maintaining the existing housing stock, rehabil[tating any deteriorating housing and providing a greater range of housing choice. It should be noted that expanding housing choice is intended in part to respond to the housing needs of a growing elderly population within New Hope. HOUSING NEEDS Communi'ry Development Plan Report #2 outlined an overall projected demand For 94 new housing units per year through 1985. Relative to Iow and moderate income householdst New Hope has established a three year goat of 68 units under the Federally Funded "Section 8 Existing" Program. Given the City's present development status, 54 of these units have been designated For Families, with the remaining 14 units designated For the elderly or handicapped. As will be discussea in detail below, in essence, 60 new units will also be provided during the next year through the Substantial Rehabilitation Program. In addition, again over the three year period, the City will help Facilitate the disbursement of 50 home improvement loans and grants to eligible households. Once the above goals have been achieved, it is the City's intent to reassess its housing needs based upon the results and evaluation of the initial three years as well as changing trends, priorities and Programs. It is antic[pated that during this time period better data regarding employment opportunities, handicapped housing needst etc. will be made available For use in pr. eparlng Future housing goals. Chief of these is the Iow interest rehabilitation loan program. Key to success in many suburban communities is the Fact that middle income families are eligible to secure these loans. The reduced interest rate, approximately six to eight percentFor middle income Families (income from $12,000 to $16,000 with adjustments), represents a three to Five percent interest reduction. The state program is actually administered through local banks and savings and loans. [he state, in this program called the Home Improvement Program, likev gives greater priority to cities who identify their local rehabilitation n~ and set Forth goals in a local plan as New Hope has done in its 1976 Community Development Housing Assistance Plan. These loans will assist not only those Families Facing major home repairs related to health and safety, b6t also families needing an extra room or improved wiring and similar improvements. The program is Flexible enc to serve as one of the City's main tools to provide an incentive to home owners to maintain their residences. The City's role is in seeing that these loans and grants are available to residents and that the residents are encouraged to secure this assistance Use of existing neighborhood organizations and encouragement of the fi on of such organizations in neighborhoods where they are presently lacking, help facilitate the effective channeling of information on available ass :e. The City newsletter can serve as an additional information source in thi regard. A third phase should involve the increasing of coordination between th~ informational resources assembled through the maintenance code inspec program and the neighborhood organizational framework. This coordlnc will involve the City inspection staffs' ability to identify and communi¢ opportunities for joint neighborhood maintenance projects. The basis fc promoting this joint approach is the history of New Hope's subdivision c ~p- ment which has produced a pattern of neighborhood and sub-neighborhc groupings of homes of similar construction and age. Given this pattern an be anticipated that certain maintenance needs will arise in a particular at roughly the same time. The objective of the joint approach would k group contracts with Iow-bidding housing maintenance vendors for the t ~ of shared 'repair or replacement needs. Under the group approach, sub.~ ~1 savings can be achieved over individual contracting. Moreover, such approach can result in increased neighborhood awareness and confidenc 10 This particular program is a new one For the state agency. It will be considering its First substantial rehabilitation proposals For apartments in the summer and fall of 1976. The City therefore should attempt to assemble the information necessary during the summer of 1976. The state has indicated it will give 'greater consideration to substantial rehabilitation proposals when the city itself is involved in stimulating the proposal, rather than when an apartment owner submits a proposal independent of the city's planning. By listing the 60-unlt Section 8 substantial rehabilitation proposal in its Community D~velopment Housing Assistance Plan, New Hope has assured the project will have priority consideration. 12 Airports MN/DOT Aeronautic Rule 14 MCAR 1.3009 provides control of genera obstructions to air navigation. Until such time as the Joint Air port Zoning Board meets and decisions are made on the ~pecific im plementation of this and other rules, the City Zoning Ordinance p rides performance standards to regulate radiation, electrical emi, sions and glare from lights so as to confine these types of bazar, tO the premises on which they occur. Amendment 2 TRANSPORTATION Concern has been expressed that the Comprehensive Plan did not ad. quately address the question of accommodating and protecting the metropolitan highway system and its local linkages. While it has been assumed that current developmen't and local zoning controls have eliminated any concern in this area, the plan should specifi cally indicate the City's position in regard to this area of conc, The following sections are adopted, to be added to the Plan docum, as indicated: Add to Page 20 - as a Pa%t 9, at the end of the General Transport Goals. 9. Provide for the protection of access to all points of access to County Road #18 so as to maintain the design standards for access to the City's major link to the metropolitan highway system. Add to Page 23. as Point 4 in the Pedestrian/Bicycle Goals section 4. Cooperate with metropolitan agencies and adjacent commu- nities in the implementation of inter-regional bicycle routes. Add to Page 57 as the next to last paragraph, these two statement. County Highway #18 borders the entire west side of the City. This highway is the major link between the City and the metropolitan and interstate highway systems. It is a limi- ted access highway that has five intersections providing access to the community. Land use is established at all intersections on the New Hope side of the highway. Access points on the intersecting streets are limited either becaus access has been purchased for some distance back from the in tersection or as a result of the existing development patte~ It is recognized that the integrity of these intersections n. to be protected and that new development or redevelopment w. De reviewed specifically for affect on access. In addition, City has an existing street system that provides for paralle. north/south movement within neighborhoods adjacent to the hi! -4 - housing areas are very limited. As of September 1979, no land remains for platting as single family home sites, and only twenty undeveloped platted lots remain. There are several areas of two-family lots under development. These are generally being developed as zero lot line units to carry out the stated policy of encouragement of resident owner- ship. The only remaining option is the rental market. Consequently, the City will seek to expand opportunities in this area. Housing is needed for both the iow and moderate income young family and for the el d erl y. The following section is to be added as an update to the August 1978 Housing Action Plan: Add to Page. 2.6., a new section to read. Ten Year Housing Goal The City of New Hope has only a few acres of residentially zoned land remaining for development. Parcels include: R - 1 No unplatted land. R - 2 19.76 acres at 49th/.#18 - city owned R - 3 6.6.acres at 36th/#18 - privately owned R - 4 10 acres at Boone/57th - Rosewood Corpora- tion, owner. R - 4 lots - two with space for 12 housing units R - i lots - 20 - scattered and either with major soil problems, held by adjacent property owners, or. remaining lo:s in expensive subdivisions. Based on the projections made earlier in this report, it is ap- parent that there will be a need for additional housing for the iow and moderate income family and elderly in the City. Because of the limited available land for new development, rental apart- ment units will be emphasized. The City will also be looking at conversion of existing housing to City operated rental housing. The actual need in the City is, of course, a matter of judgment. The more subsidized housing provided, the greater the numbers of people that will be attempting to secure it for their use. The Metropolitan Council, April 23, 1978, indicates a need for from 280 to 700 new units for New Hope in the next ten years. Current Section 8 programs indicate a high demand of interest. The City's earlier "Homestead" proposal, which was dropped be- cause of strong neighborhood opposition, received indications of interest from throughout the country. Whatever the actual needs, 'they can best be met by a combination of City and private developer action. -6 - Housing programs are consequently changing as ~oth governmer. and private sectors attempt to develop programs to meet hou-~ needs. The City will continue to review new programs as the develop for possible use within the City. Amendment 4 SOLID WASTE: A statement as to solid waste controls was not included in the o2 adoption of the City's Comprehensive Plan because it was felt tha cally, solid waste was not a concern, since suitable controls exi In order to provide a statement in the Plan to serve as a referen the following section is adopted to be added to the Plan document a new section on Page 63. Solid Waste Solid waste collection, storage, and disposal of all solid waste in the City is controlled by existing ordinances that provide sp~ standards for handling solid waste. The City was an original member of the North Suburban Sanitary Di Authority that purchased a site in the city at 51st/CSAH#18 for a cineration and transfer station. When the development of this si proved unfeasible, the site was sold for industrial development a City is forced to use disposal sites Outside the City for the dis of waste that is collec~ed by a system of private collectors. Be the availability of cur~'ent disposal sites within reasonable dist of the City is a concern, the City Council has adopted a resoluti support of Hennepin County's efforts to find and develop new dis~ sites and appointed delegates' to the County .Study Committee. No tional local action is anticipated. Amendment 5 SOLAR ACCESS Use of solar energy to meet national energy needs is currently a 3ct of much discussion. To date, nothing had been done at the local [ to encourage or implement a program for use of solar energy. The 3- diate concern is for the preservation of solar access. The City does not have the expertise needed to implement a progra solar access protection and development at this time. The need f ach a program is recognized and the intention is to take advantage of 31 ordinances and programs as they are developed. The following section is adopted to be added to the Plan document Page 63. Solar Access The City recognize~ that solar energy is now being examined a possible major research in the search to meet the nation's energy needs. If solar energy is to be utilized, access to direct sunlight must be maintained. Currently, model regula tions for use by local governmont are not available. The Ci recognizes that the need to provide regulations exist and th solar access must be developed. The City intends to monitor developments in this area in order to adopt local controls a PROJECTS COMPLETED 12. 49th Avenue - Sidewalks A walkway was constructed From Winnetka to Louls[ana and walks west of Winnetka were completed. 13, 47th and W[nnetka- Signallzation 14. 36th Ramp at County Road 18 - Signalization 15. Boone and Medicine Lake Road - Signalization 16. St. Jacob's Hall 17. Area Planning Coordination BasJc planning and development guidelines established for the City Center area. Coordination and work with owners~ tenants and developers will have to be ~-'ontlnued. 27 D. On-site Sewage ~isposal S~stem On-site sewage disposal systems are permitted in the City only where municipal sewer service is not available. Municipal sew~ has been extended to the entire City with the exception of two lots where an extension is scheduled for the Fall of 1979. The two private systems are regulated by existin~ ordinance, Chapter 5 (Section 5.05) of the City Code controls, but the rems should be eliminated within the next few months. III. HOUSING IMPLEMENTATION The City has only a limited amount of land left fo~ residential de~ - ment and has no remaining single family zoning area that is not pi~ As of October 1, 1979 approximately 20 platted lots for single fam~ development remained in the City. With three exceptions these lot~ all in areas of high value homes with floor areas exceeding the Ci~ minimum requirements. A. Official Controls 1. The Zoning Ordinance does specify minimum floor areas for ~ e- family homes of 1240 square feet, of which garage area, at' d or detached, can~ount for up to 200 square feet and all f. meeting residential occupancy standards are counted. 2. The Zoning Ordinance does require the construction of a ga. with single family homes. 3. The Zoning Ordinance does provide the opportunity for the velopment of single family homes on small lots through the of zero lot line party wall structures, having each side o ~ attached homes on a 7000 square foot lot. 4. The Zoning Ordinance does not permit multi-family densitie 3 three story stuctures .of 20 units per acre. The limit is J its. 5. The Zoning Ordinance does specify floor area requirements multi-family housing, ranging from 500 square feet for ef£ ciency units to 750 square feet for two bedroom units. 6. The Zoning Ordinance does require the construction of at l one garage unit and 1% off-street parking spaces per unit b multi-family housing. These are the minimum standards ex~ ~ce has shown to be necessary to meet the needs of the resider f apartment units at this time. 7.The Zoning Ordinance does permit PUD residential developm~ with a 10~ density bonus. B. Low a~d Modera,te Income Housing Goal The City's iow and moderate income housing goals will be acco~ he~ C. 2. the City to assure that residential property is kept in good condition and to provide funds as necessary to assist the lower income families when financial assistance is needed to maintain housing at Code levels. IV. GENERAL ACTIVITIES The provisions contained in each of the official controls will be main- tained and preserved through the life of the Comprehensive Plan unless formally amended. Any amendments will be consistent with the Compre- hensive Plan. ooo 04104/94 14:52 Sc, id Single Family ~ : 1 L I S]'~ ADDRESS AR SUB S-PRICE DATE MT FSZ BR 0042900 8217 28TH AVE N 362 1 0 05/15/93 55 834 4 2 ]RY i 0062253 9016 31ST AVE NO 362 1 0 06/13/93 5 1064 3 1 xSPL 2 0058775 6027 BROADWAY W 362 1 5i,900 08/20/93 23 840 2 I ~:LER 3 0062008 5407 YUKON AVE N 362 1 57,000 06/19/93 12 640 2 1 ~LER 4 1032455 5406 ViRGINiA AVE 362 1 58,000 02/16/94 31 616 2 2 ~LER 5 ,~o 15 726 2 1 ~LER A047466 5840 46TH AVE ..... 1 62,000 04x''''~' "~'~ 0040100 5431 YUKON AVE N 362 1 64,000 05/03/93 54 620 2 1 ~:LER 7 0054350 5400 ZEALAND AVE N 362 1 64,900 08/20/93 84 900 .3 1 ~LER 8 1019980 7820 61ST AVENUE N 362 1 67,500 10/i9/93 1 900 3 1 ~LER 9 0056682 5001 52ND AVE NO 362 1 72,500 04/21/93 t7 760 3 1 ~LER i0 10156~](].. 4.']""=~ NEVADA AVE N 362 1 73,5AA.. 1t/i8/93 52 1100 3 1 ~LER '11 0052401 4645 WINNETKA AVE 362 1 74,500 '..}5/23/'93 14 924 2 2 BLER 12 0031457 = 1 XYLON AVE NO ....... i 74,900 06/18/93 .3~ 1159 0062862 541i XYLON AVE NO 362 i 74,900 06/18/93 47 i i59 3 1 DRY 14 0040873 4103 OREGON AVE N 362 1 75, 100 04/12/93 6i 900 3 2 STY 15 0043560 6009 SUMTER PL N 362 1 76,500 04/02/93 4 1270 3 1 BLER 16 0043492 4901 WINNETKA AVE ~.~ 1 77,9'.'i)(]) 06/07/93 177 1040 ~ 1 BLER 17 0068549 6008 RHODE ISLAND 362 1 77,900 07/'..')9/93 56 1176 3 2 BLER 1005735 5908 DECATUR AVE N'362 1 78,500 08/22/93 16 970 3 1 BLER 19 ~ . :~ lc~/~.J 24 696 3 1 STY 20 0060535 4225 NEVADA AVE N 362 1 78,900 C)'- .... 0051188 6016 GETTYSBURG AV 362 1 80,000 07/02/93 86 1095 3 1 ~:LER 21 0072899 5949 BOONE AVE NOR 362 1 80,000 08/03/93 57 1056 3 1 BLER 22 0067657 3265 INDEPENDENCE 362 i 81,000 06/14/93 20 1066 3 2 BI..ER 23 1000272 :~ ..... ' ~'F:'-' 46 1080 c. 2 B[.Er~. 24 :4o~ NORTHWOOD PKY ~ 3 81,4(')C) ..... (?3/29/93 .., ' oF .~, .. 25 1029764 8417 62ND AVE N ,~.~ 1 81,500 0'P/i0/9,~ 42 888 ~ 2 /ENT 1002435 7659 60TH AVENUE N 362 1 82,500 09/01/93 8 672 3 2 STY 26 .-,('~ = = . 75 c., ('~ 4 / (°) 3 / 9 :n '7 1 (] 92 3 1 " ~' ~- F..AMBL .-.,~. :2'7 .... ~..~14'7 6117 SUMTER AVE NO 362 I 82, ..... /~3 53RD AVE 362 1 84,000 (-~,: ~-~o ~,::~,-~ ~ ~.A, ,=~L=,.. -~,c~ 0074599 --o, . ........ ~, 29 1020 ~ 2 - ~'" ":':' 1000405 ~'-'~'"' VE .)~z13/93 3i 1000 3 1 R~MBLER 29 ~.~.~:~ DEL DRI 362 ~ 84,000 (]051796 5416 WISCONSIN ~VE '~ '-' I , ~-~, ~ 1(]15 3 ° R~BLER ~6~ 84 500 09/~ =''q .... ~'~ ('~(]45770 5949 ..~VELL ~VE NO ~o.~. 1 84, ...... ~ _'LER ~- ~'~ 900 iP~P~/93 960 'F~ ~'-' 0071~;~~ 4070 DECATUR ~VE N 3~:,Z 1 ~,~, ............ 56 4 2 SPLz~:~.4T .... ~'-' 8,~ 900 ('~/11 ..... 'B 1080 c, 2 RAMBLER .... I(')(')58~6 4217 AQUIL~ AVE N .:~.,:: 1 , , ........ ~= (-)(-~(] -]--, ...... z,-,., 109 1000 ~ 1 1020827 6110 ENSIGN AVE NO 362 1 ,~.J, ..... ~..~z~.~o, :~ .., ~"~" '-' ~t... 00511~,8 ~ .J~o~=~ CAVELL AVE NO 362 1 ~=~, z(.~(.'-'-' ') 0,~/27/93 c,-:,~..- 916 3 2 RAMBLER .:.,~'=. _ (]483(]3 ~'-'(] ~'=' 5('~(] ('' '-" "--' ~ . _ . ~. VIEWCREST 362 1 ,~,s, .. .~4/~4~o .~ 1112 3 2 4LV/SPL .~ · 'x'~='''''-'~= 613~ WINNETKA AVE 362 1 86,000 ,',F z--,~,,:~ · - ,.,~, ioz :.~ 9 1040 ~ 2 RAMBLER 1 .~L~4~.~ 4980 VIRGINIA AVE 362 1 86, 5~'x'~ ,.,:,'"":' z--,O~o,Z,:~,~_o 11 888 .3 2 SF'L./ENT ~"~ 1016276 6017 ~]]YSBU[4. L~ AV 362 i 86,900 i0/04/93 ,~ 10-7,~ 2 I RAMBLER 3'~ 1032153 5900 CAVELL AVE N 362 1 87,000 01/t8/94 I 968 3 2 RAMBLER 40 1021419 40i6 ENSIGN AVENUE 362 I 87,200 10/27/93 4 1260 4 2 '"~"' z""~' 1006744 '~"'='F 87 500 .'v' .... ,~'-'"," ~:~ OREGON AV N 362. 1 , ,..o/~c, i4 i040 3 2 RAI'IBLER 42 F~.~P Bl_~r~. 43 ,~Fc, '~12 3 o -~ ~', ,'-~, 1001803 7900 59 1/2 AVE N o .... 1 ~'7,900 07/"P~:zq'~ 7 .... ,. ('~(]r~ 04/16/93 8 915 3 I oc,~ /F'~,n- 44 (](]5t618 4o~4 BRUNSWICK AVE 362 1 88, 10('r)4E,(] ~ = 2 816 3 2 ~' or,_~ E ~ 45 --- - .~8,)6 HILLSBORO AVE 362 I 88,000 ,."~'r~ z-:,,: zc~o., .~.~, ~, 1015290 3496 YUKON AVE NO 362 1 88,000 10/t9/93 '25 lt)7~ 3 2 RAPiBL. ER 46 0('~54719 84U~, MEADOW LAKE R ~F'-' ' -~ o~ 1 oo 8C'0 (')4/(')~/'~t~ 22 1(')~6 3 2 RAMBLER 47 ..... :,FLz EN , 4.~ 1017417 7724 45TH AVE N 362 1 88~':('~r~ 11/01/93 28 1144 3 2 c,-, ,- ~' 0066172 8409 MEADOW LAKE R 362 i 89,700 06/22/93 36 1188 3 2 RAMBLER 49 1(]](')8'~'~ 9232 59TH AVE NO 362 1 89,850 09/11/93 12 1080 4 2 SPL/ENT 5 1000214 3217 HILLSBORO 362 1 89,900 12/17/93 158 988 2 2 RAMBLER .... ~ ' 52. lr~'~':~642 4625 RHODE I~LAND 362 i 89,900 09/14/93 i8 1020 3 1 RAMBLEEt i('~17':~6~ .... ~oz~,~= .... '= RHODE ISLAND 362 1 89,900 10/17/93 12 1066 ~.,~ 1 SPL/ENT. ~..~ 0046045 9233 NORTHWOOD F'KW 362 I 90,000 04/17/93 7 816 3 2 SPL/ENT~.='- ' ~' ~"-' .~/~.~/~.~ 15 1200 5 2 RAMBLER 1~.~1o'~ 6116 WINNETKA 362 I 90,000 ~'"' ~' TOTAL SINGLE FAMILY LISTINGS: 55 AVRG L l ST PR l CE: ~A'-'.=,.890 AVRG SOLD F'RICE: 77,G80 AVRG ~iARKET TIME: 36 ...... / -,..:,- ~..-' I Criteri.a: -ST=SOLD AE'=~6'i? 'I'YP=I 'SP=90-- OMD=4/1 ":'~ ~ ' 194 5=NM 'i 04104/94 14:54 Sold Condc,/Town~c, use F ~ 1 LIST~ ~ ADDRESS AR SUB S-PRICE DATE MT FSZ BR BP ~LE 08'~8575 6007 W BROADWAY 362 1 '~'~ 500 AM/C)7/93 80 ~"~' 2 1 FL* I ":~'~ 900 09/07/93 1° 7~ ~ 1 FLT 2 1009757 6007 BROADWAY W 362 1 .... , lz/.)~,/~ 4~ 700 1 1 A8897Cx'~ 2800 H ILLSBORO AVE 362 1 29 5AA "" ¢~ '-~ ~ ~3 0896776 6007 BROADWAY W 362 1 31,500 05/17/93 414 800 2 1 '~ '~ ~"~' 32 000 04/26/93 250 700 1 1 ~3-S 5 0906146 2800 HILLSBORO AVE o.a~. 1 , · ¢= o.~, ¢)00 10/12/93 160 800 2 1 FLT 6 0926814 6.k~l WEST BROADWAY 362 1 , 1026483 2800 HILLSBORO AVE 362 1 32,500 i2/29/93 31 700 1 1 FLT 7 '-'~ ... 32 000 02/09/94 i53 700 1 1 FLT 8 1011~6~ 28Cx] HILLSBORO AV 362 1 .., . Q903250 6(')51 WEST BROADWAY ')~: ''~' i 33 900 "~':~ ~-~,o/,:~o '~ -zF'~' ~?-~ . ~'F":' - .... '5~' 0 3 2 q HM t0 09].5792 9379 BASS CREEK CR o~.,. 1 62,000 04/]~8/'~3 ~.c, 101i000 355~ INDEPENDENCE 362 1 62,200 10/1.~, ..c, 43 968 i ,~ HM Ii ' '-'" ~ 362 ~XS 1014815 8869 4~.N~ AVE NO 1 62,500 09/29/93 Ii 0 2 2 12 .... "~ °F'=' 6,]~, 000 01/2,~/94 9 925 ~X._, ~" ...... "~('~ c:,::,6~ 42ND AVE N ....... i 2 2 i3 l ~.~,~:: · z .. o= =~.::, ~ c ' ) '"~- oF ':' .. ~ '"' ~'~'" '~ 968 o . 101C, 996 ........ IND~FENEEN~ ....... ~ t 6~,,900 11~ 1:/ ~, ...... 1 _ ._ ~,~c. t 67,5C) C} 0i/06/94 99 lO~'~ .? 9 q HM 15 1016066 4043 JORDAN AVE NO ~ .................... o(.x.~ (')9/¢X3/93 24 960 U 2 Hhl 16 10(')6F~32 3557 INDEPENDENCE 362 1 67, o-. -. .. .. '- 10271C)5 3560 INDEPENDENCE 362 1 69,900 01/21/94 46 972 3 2 q HP1 17 092S924 3561 INDEPENDENCE 362 1 71,900 09/27/93 4t 1].80 4 2 1~/ ~, .... 960 :2 q Hr-1 ............ .- ,:~ - of:: 3 C)'::¢'27tFq 92Q~ 41~.] AVE NO 362 1 8C),000 06/ o,,'-", TOTAL. CO~4DO/TOWNHOUSE LISTINGS: 19 AVRG L~ST PRIE:E: 52,0Z8 AVRG SOLD PRICE: =k) 131 AVRG ~ARKE'r -r z ~E: ~24 · ' / ':"/°- -- 4: 94- Criteria: ST=SOLD AR=362 TYP=2 SP=:9C,- OMD=4/1 ....... /t/ 5=? · I-UP/ REQUEST FOR ACTION Originating Depar[ment Approved for Agenda Agenda Section City Manager EDA 4-11-94 Dan Donahue ~ Item No. By: By:~TA 6 RESOLUTION APPROVING THE INING OF SPRINGSTED TO PERFORM A FINANCIAL ANALYSIS ON TIF DISTRICTS The financial analysis is needed to produce an independent outside assessment of the cash flows of the City's Six Tax Increment Financing Districts. The analysis will be the basis for financial decisions on the use of excess TIF funds to build a community/teen center in the City. MOTION BY ~ SECOND BY Review: Administration: Finanee: RFA-O01 EDA RESOLUTION NO. 94- RESOLUTION APPROVING THE RETAINING OF SPRINGSTED TO PERFORM A FINANCIAL ANALYSIS ON TIF DISTRICTS WHEREAS, tax increment financing districts provide the mechanism to fir public redevelopment costs of redevelopment projects; and WHEREAS, the City presently has six tax increment districts which created by the City's HRA pursuant to separate tax incr( financing plans; and WHEREAS, upon creation of the City's Economic Development Authority the transferred control of the TIF districts to the EDA; and WHEREAS, the City is considering utilizing excess tax increment to pay ( of a proposed community center; and WHEREAS, it would behoove the EDA to obtain a financial analysis produce Springsted of the cash flows of the six TIF districts. The anal will be the basis for financial decisions on the use of excess funds to build a community/teen center in the City. NOW, THEREFORE, BE IT RESOLVED that the EDA authorizes the retaining of Springsted, Inc. for a cost not to exceed $4,000 for analyi services. Adopted by the Economic Development Authority in and for the City of New this 11th day of April, 1994. President Attest: Executive Director SPRINGSTED 120 South Sixth Street PUBLIC FINANCE ADVISORS Suite 2507 Minneapolis, MN 55402-1800 (612) 333-9177 Fax: (612) 349-5230 Home Office 85 East Seventh Place Suite 100 16655 West Bluemound Road Saint Paul, MN 55101-2143 Suite 290 (612) 223-3000 Brookfield, WI 53005-5935 (414) 782-8222 Fax: (612) 223-3002 Fax: (414) 782-2904 6800 College Boulevard Suite 600 Overland Park, KS 66211-1533 (913) 345-8062 Fax: (913) 345-1770 April 7, 1994 18o0 K Street NW Suite 831 Washington, DC 20006-2200 (202) 466-3344 Mr. Daniel J. Donahue, City Manager Fax: (202) 223-1362 City of New Hope New Hope City Hall 4401 Xylon Avenue North New Hope, MN 55428-4898 Dear Dan: On behalf of Springsted Incorporated, I am pleased to respond to your request for a quote from Springsted to do an analysis of the City's cash flow that will be generated by your existing tax increment districts over their life in excess of that needed for current debt and to identify financing and operational options available to the City. We have undertaken a number of such studies for our clients in the recent past, and many of them like you are looking for alternative ways to finance needed community facilities. We propose to undertake this analysis on an hourly basis, and in no instance will the cost exceed $4,000. We believe, given the quality of information that you have available and its timely availability, we should be able to perform this task within the not-to-exceed limit. This cost will also include any necessary meetings with the City staff and a presentation to your City Council regarding our findings. In addition, should this study lead to the opportunity for Springsted to issue any tax increment bonds for this project on behalf of the City, we will give a credit for all costs associated with the study to that bond issue. Simply stated, having done the background and analytical work on the study, it will allow us to undertake the sale process in a more cost-effective manner. If we are given direction to proceed on April 12, we should be able to complete the task no later than your Council meeting on May 9th. We, again, appreciate the opportunity to provide analytical services to the City of New Hope; and I will see that the analysis is produced in a quality and timely manner. Should you have any questions regarding this proposal, please feel free to call me at your convenience. Yours truly, _ ~ r~ Robert D. Thistle Vice President sms /Saint Paul Office DORSEY & WHITNEY NEW YORK ROCHI PILLSBURY CENTER SOUTH WASHINGTON, D.C. 220 SOUTH SIXTH STREET I~INNEAPOLIS, I~IN/qESOTA 5540~-1498 D ENVE R (612) 340- 2600 GR EA LLS OBNGE COUNt, CA LONDON $~ p. ONI.I~ D E S BRUSSELS FJ March 3, 1994 Mr. Daniel Donahue City Manager City of New Hope 4401 Xylon Avenue North New Hope, Minnesota 55428 Re: Use of Tax Increment for Community Center Dear Mr. Donahue: You have advised me that the City of New Hope is considering the construction of a new community center to be owned and operated by the City. I my understanding that the community center will be used for recreational and social activities. You have asked whether excess tax increment from existing tax increment financing districts in the City may be used to pay costs of the commur center, and if tax increment can be utilized for this purpose, what actions are necessary to authorize such use. There are presently six tax increment finandng districts in the City. These districts were created by the City's ~ pursuant to separate tax incremen financing plans approved by the t-IRA and the City Council. The financing planl were approved to finance costs authorized to be paid or incurred by the City and HRA in connection with a redevelopment plan and a redevelopment project approved at the same time as the respective financing plan by the HRA. Initialb property included in the redevelopment plan area was the same property that w included in the tax increment financing district created by the respective tax increment financing plan. The tax increment financing district provides the mechanism to finance the public redevelopment costs of a redevelopment proje Following the creation by the City Council of the City's EDA, the Cit transferred control of the redevelopment plans and projects and the tax increm~ financing districts to the EDA. All of the tax increment financing districts were DORSEY ~c WHITNEY Page -2- Mr. Daniel Donahue March 3, 1994 created following the August 1, 1979 effective date of the Minnesota Tax Increment Financing Act (which is now codified as Minnesota Statutes, Sections 469.174 to 469.179). Listed below are the six tax increment financing districts: I-Iennepin County District Designation Number Description 1601 VOA 1602 36th & Hilboro 1603 & 1604 North Ridge 1605 Broadway LaNel (Anthony James Apartments) 1606 & 1608 42nd Avenue 1607 Emerald Point Apartments Under the Tax Increment Financing Act tax increment from a tax increment financing district may be expended in the related "project" area for the district. The project area may include additional property not included in the tax increment financing district. In the case of the City's tax increment finandng districts, the project area where tax increment from such district may be expended is the property subject to the related redevelopment plan and prOject for such district. In the case of certain of the districts (North Ridge, 42nd Avenue and Broadway LaNel), the EDA and City have approved amendments to redevelopment plans and tax increment financing plans to expand the redevelopment plan area in order to finance expenditures in such additional area with tax increments from a tax increment financing district, without including such additional property in the tax increment financing district. In 1989 the North Ridge tax increment financing district was expanded to include Community Center Park which is where I understand the new community center is proposed to be located. The EDA and City could approve amendments to expand the redevelopment plan areas for the redevelopment plans associated with any or all of the six tax increment finandng districts to include the area where the community center will be located and also amend the financing plans for each of the tax increment financing districts to authorize the expenditure of excess tax increment from the districts for the costs of the community center. The area subject to the tax increment financing districts would not be expanded to include the property where the community center is to be located. By these amendments the City would utilize tax increment to pay the costs of the community center. DOlCSEY ~ WHITNEY Page -3- Mr. Daniel Donahue March 3, 1994 In 1990 the Minnesota Legislature amended the Tax Increment Financing Act to limit the ability to use tax increment from a tax increment financing district to pay the costs of projects located outside the geographic area o the district. This is commonly referred to as the "pooling" limitation. However~ this pooling limitation only applies to tax increment financing districts where th request for certification was filed after April 30, 1990, so it is not applicable to the City's tax increment financing districts (and therefore will not limit the City's abi to utilize tax increment to finance the community center). The Tax Increment Financing Act contains a prohibition on the use of tax increment for governme~ buildings but the section containing this prohibition contains a specific exceptior a facility used for social, recreational or conference purposes. So this prohibition will not apply to the community center based upon what I understand to be the intended use of the community center. If the City Council wishes to use tax increment to pay costs of the community center I would recommend that the EDA and City approve a master modification to the existing redevelopment plans and tax increment financing plans. The master modification will enlarge the area subject to each amended redevelopment plan to include the location of the community center and provic for the construction of the community center as part of a redevelopment project, and will also amend the tax increment financing plans and budgets to authorize expenditures of tax increment from the various districts for the costs of the community center. In approving this master modification the City Council will required to make the findings required under the Housing and Redevelopment Authority Act and Tax Increment Financing Act concerning the necessity of utilizing tax increment for this purpose and that the redevelopment plans and t~ increment financing plans conforms to the general plan for development of the, as a whole and affords maximum opportunity, consistent with the sound needs the City as a whole, for the development of the project by private enterprise. Th, City should be able to justify this expenditure of tax increment on the basis that i providing a needed public facility which will benefit the community as a whole, including the residents and businesses located in the tax increment financing districts. The following actions will need to be taken to approve the master modification: 1. A public hearing on the master modification needs to be held by the City Council. Notice of the public hearing and a map showing the tax increment financing districts and redevelopment plan areas needs to be published in the City's official newspaper once not less than 10 days nor more than 30 days prior to the hearing. DORSEY ~: WHITNEY Page 4- Mr. Daniel Donahue March 3, 1994 2. At least 30 days before a public hearing on the master modification the EDA is required to submit to Hennepin County and School District No. 281 information with respect to the fiscal and economic implications of the modification and provide members of their respective Boards an opportunity to meet with the EDA. The fiscal and economic implications of the master modification will be to keep the tax increment financing districts in existence for longer than would otherwise have been the case, thereby delaying the time when the captured tax capacity of the districts is available for taxation by the other local governmental units. 3. The EDA must adopt a resolution approving the master modification. 4. Following the required public hearing the City Council must adopt a resolution approving the master modification. I~ the City w':shes to proceed with the modificat':on, the City should consider only amending the redevelopment plans which relate to the tax increment financing districts from which the most excess tax increment will be derived, and to the extent feasible drafting the modification so that all redevelopment plan areas are contiguous. This type of "nexus" among the areas will make it easier for the City Council and EDA to make required findings related to the master modification required under the Tax Increment Financing Act and Housing and Redevelopment Authority Act, and less likely that someone can criticize the City's actions. Should you have any questions concerning the foregoing, please give me a call. Yours trulT.' ~ee Gilhgan JPG:cmn cc: Steven Sondrall CITY OF NEW HOPE MEMORANDUM DATE: March 21, 1994 TO: Dan Donahue FROM: Larry Watts SUBJECT: COMBINED'CASH FLOW PROJECTION OF TIF DISTRICTS, EXCLUDING TIF NO. 6 (BROADWAY LANEL). Attached herewith is a combined cash flow statement for the City's TIF Districts. I based tax increments on 1994, and not consider the closing of any TIF Districts. I used a 4~ interest return on investments. Expenditures are based or ~t service, closing of some existing improvement projects, an~ estimated $1,000,000 for adult day care. As you will note the accumulated balance out in 2004 would $18,097,830. This is just a general idea and a quick start. After you ~ had time to review we can discuss and put together some fi! numbers. CITY OF NEW HOPE CASH FLOW PROJECTION COMBINED TIF DISTRICTS (EXCLUDING TIF 6) DESCRIPTION 1994 1995 1996 1997 1998 1999 BEGINNING CASH BALANCE $5,417,433 $4,832,784 $5,544,189 $6,271,550 $7,191,724 $8,488,665 REVENUE: TAX INCREMENT PROPERTY TAXES 1,616,981 1,616,981 1,616,981 1,616,981 1,616,981 1,616,981 INTEREST 216,697 193,311 221,768 250,862 287,669 339,547 OTHER TOTAL REVENUE 1,833,678 1,810,292 1,838,749 1,867,843 1,904,650 1,956,528 DISBURSEMENTS: DEBT SERVICE REQFIREMENTS PRINCIPAL TIF NO. 2 25,000 25,000 30,000 30,000 30,000 PRINCIPAL TIF NO. 7 100,000 105,000 110,000 120,000 PRINCIPAL TIF NO. 8 90,000 95,000 PRIN-REFUNDING BOND 1987 375,000 385,000 420,000 285,000 PRIN-REFUNDING BONDS-1994 45,000 170,000 180,000 315,000 320,000 INTEREST TIF NO. 2 10,518 8,530 6,300 3,810 1,275 INTEREST TIF NO. 7 60,865 19,627 12,315 4,260 INTEREST TIF NO. 8 52,148 3,135 INT-REFUNDING BOND- 1987 68,130 48,461 27,015 7,838 INT-REFUNDING BOND -1994 88,828 177,656 173,342 164,253 149,586 129,090 TRANSFER IN FROM TIF NO. 6 FOR SHARE OF 1994 REFUNDING (11,360) (22,720) (46,782) (49,690) (47,350) (49,747) FISCAL AGENT FEES 4,000 4,000 4,000 4,000 4,000 4,000 TIF ADMINISTRATION FEE 155,198 155,198 155,198 155,198 155,198 155,198 TIF ADMIN CATCH UP 50,000 50,000 50,000 43,000 TIF PROJECTS FUNDING OF 42ND AVE PROJECTS 350,000 ADULT DAY CARE 1,000,000 TOTAL EXPENDITURES 2,418,327 1,098,887 1,111,388 947,669 607,709 558,541 PROJECTED ENDING CASH BALANCE $4,832,764 $5,544,189 $6,271,550 $7,191,724 $8,488,665 $9,886,651 CITY OF NEW HOPE CASH FLOW PROJECTION COMBINED TIF DISTRICTS (EXCLUDING TIF 6) DESCRIPTION 2000 2001 2002 2003 2004 BEGINNING CASH BALANCE $9,886,651 $11,339,974 $12,867,769 $14,469,714 $16,145,598 REVENUE: TAX INCREMENT PROPERTY TAXES 1,616,981 1,616,981 1,616,981 1,616,981 1,616,981 INTEREST 395,466 453,599 514,711 578,789 645,824 OTH ER TOTAL REVENUE 2,012,447 2,070,580 2,131,692 2,195,770 2,262,805 DISBURSEMENTS: DEBT SERVICE REQFIREMENTS PRINCIPAL TIF NO. 2 PRINCIPAL TIF NO. 7 PRINCIPAL TIF NO. 8 PRIN-REFUNDING BOND 1987 PRIN-REFUNDING BONDS-1994 340,000 350,000 360,000 380,000 145,000 INTEREST TIF NO. 2 INTEREST TIF NO. 7 INTEREST TIF NO. 8 INT-REFUNDING BOND- 1987 INT-REFUNDING BOND -1994 106,821 82,387 56,009 27,577 6,375 TRANSFER IN FROM TIF NO. 6 FOR SHARE OF 1994 REFUNDING (46,895) (48,800) (45,460) (46,890) FISCAL AGENT FEES 4,000 4,000 4,000 4,000 4,000 TIF ADMINISTRATION FEE 155,198 155,198 155,198 155,198 155,198 TIF ADMIN CATCH UP TIF PROJECTS FUNDING OF 42ND AVE PROJECTS ADULT DAY CARE TOTAL EXPENDITURES 559,124 542,785 529,747 519,885 310,573 PROJECTED ENDING CASH BALANCE $11,339,974 $12,867,769 $14,469,714 $16,145,598 $18,097,830