061394 EDA - Official File Copy
I
CITY OF NEW HOPE I
I
EDA AGENDA
EDA Regular Meeting g7 June 13, 1994
President Edward J. Erickson
Commissioner W. Peter Enck
Commissioner GeraM Otten
Commissioner Terri Wehling
Commissioner Marky Williamson
1. Call to Order
2. Roll Call
3. Approval of Minutes of May 23, 1994
4. Presentation by Springsted, Inc. of Cash Flow Analysis Regarding the City's Tax
Increment Districts
5. Resolution Approving Purchase of 6073 Louisiana Avenue North (Improvement
Project No. 519)
6. Consideration of Request by Broadway Village for Increased Loan Support for
Community Center Project, Improvement No. 513
7. Adjournment ~
CITY OF NEW HOPE
4401 XYLON AVENUE NORTH
HENNEPIN COUNTY, MINNESOTA 55428
Approved EDA Minutes May 23, 1994
Meeting #6
CALL TO ORDER President Pro tem Enck called the meeting of the Economic Development
Authority to order at 7:56 p.m.
ROLL CALL Present: Enck, Otten, Williamson, Wehling
Absent: Erickson
APPROVE MINUTES Motion was made by Commissioner Otten, seconded by Commissioner
Wehling, to approve the EDA minutes of May 9, 1994. All present voted
in favor. Motion carried.
MCPP PROGRAM President Pro tem Enck introduced for discussion Item 4, Motion Approving
Item 4 Submission of the Mortgage Revenue Bond Allotment Agreement and the
Minnesota City Participation Program Application - Commitment Agreement
for Participation in the Minnesota City Participation Program.
Mr. Dan Donahue, City Manager, indicated on April 11, 1994, the City
Council approved the submission of this application. The City was
approved and therefore must sign the commitment agreement.
MOTION Motion was made by Commissioner Wehling, seconded by Commissioner
Item 4 Otten, to approve the Commitment Agreement for Participation in the
Minnesota City Participation Program. All present voted in favor. Motion
carried.
ADJOURNMENT Motion was made by Commissioner Otten, seconded by Commissioner
Wehling, to adjourn the meeting. All present voted in favor. The New
Hope EDA adjourned at 8:00 p.m.
Respectfully submitted,
Valerie Leone
City Clerk
New Hope EDA May 23, 1994
Page 1
f..(~ q)~,.] REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
EDA
Fi nance/Admi n. 6-13-94
~~ Item No.
By:Larry Watts By: 4
PRESENTATION BY SPRINGSTED, INC. OF CASH FLOW ANALYSIS REGARDING THE CITY'S TAX
INCREMENT DISTRICTS
The City of New Hope retained the Springsted Corporation to prepare cash flows
of the City's tax increment districts, based on various options. They were also
requested to explore funding options for financing the construction of a
community center and providing funds to cover operational costs.
Mr. Bob Thistle of Springsted, Inc. will be at tonight's meeting to give a
presentation on the information requested by the City.
MOTION BY SECOND BY
· o:
Review: Administration: Finance:
I RFA-O01 ~
EDA
REQUEST FOR ACTION
Originating Department ^ppmved for Agenda Agenda Section
City Manager 6-13-94 EDA
Dan Donahue /I ) Item No.
By: By:('7 5
RESOLUTION APPROVING PURCHASE OF 6073 LOUISIANA AVENUE NORTH (IMPROVEMENT PROJECT
NO. 519)
At its meeting of April 25, 1994, the EDA adopted a resolution authorizing the
acquisition the property at 6073 Louisiana and directed staff to proceed with the
purchase.
The purchase agreement contains a purchase price of $17,402 which will be
financed with CDBG scattered site funds. The City will assume responsibility for
extending utilities to the site (approximately $16,598) and construction of
affordable housing.
Staff recommends adoption of the resolution approving the purchase.
Review: Administration: Finance:
RFA-O01 ~
CORRICK & SONDRALL, P.A.
ATTORNEYS Ar LAw
Plaza
MICHAEL R. LAFLEUR r. uznuur~.,
MARTIN ~ MALECHA 8525 Edinbrook Crossing
Suite #203
Brooklyn Park, Minnesota 55443
TELEPHONE (612) 425-5671
FAX (612) 425-5867
June 6, 1994
Kirk McDonald
Management Asst.
City of New Hope
4401Xylon Avenue North
New Hope, MN 55428
RE:Acquisition of 6073 Louisiana Avenue North
Our File No. 99.11121
Dear Kirk:
In connection with the completion of the purchase of 6073 Louis
Avenue North, enclosed please find a Resolution Approving Purc
of 6073 Louisiana Avenue North. The Resolution also specific
authorizes the President, Executive Director and staff to comp
the Durchase.
Please place this on the agenda for the EDA meeting on June
1994.
Please contact me if you have any questions.
Sincerely,
ORIGINAL SIGNED
~v ~ RTIN P. MALECHA
Martin P. Malecha
s3m
Enclosures
cc: Daniel J. Donahue (w/ ~i, ......
Valerie Leone (w/enc)
Steven A. Sondrall, Esq.
EDA RESOLUTION NO. 94-
· 'RESOLUTION APPROVING PURCHASE OF
6073 LOUISIANA AVENUE NORTH
BE IT RESOLVED by the Economic Development Authority in and
for the City of New Hope as follows:
1. That the purchase agreement for vacant land known as 6073
Louisiana Avenue North, attached hereto as Exhibit A, is
approved.
2. That the President, Executive Director and/or staff are
hereby authorized and directed to sign such documents and
make such payments as are necessary to complete the
purchase of the subject property in accordance with the
terms set forth in the attached purchase agreement.
Adopted by the Economic Development Authority in and for the
City of New Hope this day of , 1994.
Edw. J. Erickson, Chairman
Attest:
Daniel J. Donahue, Executive Director
MINNESOTA. STANDARD RESIDENTIAL PURCHASE AGRE !NT
c. Copyright 1988, by Hennepin County Bar Association, Minneapolis, Minnesota.
BEFORE YOU USE OR SIGN THIS CONTRACT, YOU SHOULD CONSULT WITH AN ATTORNEY TO DETERMINE THA' DNTRACT.
AOEQUATELY PROTECTS YOUR LEGAL RIGHTS. Hennepin County Bar AssOCiation disclaims any liability arising out of use o C
' 1. PARTIES. This Purchase Agreement is made on ,,'d~ wv'~ ~ 19__2~ ~ between
2 iName) Carol N. James and Faye C, James,~usband and wife ol
(Address) 7105 62nd Avenue No.~ New Hope~ MN 55428 tal statuSl
: _ER. AND
(Name)'F-.~OD.O~C Development Authority in and for the City of New Hopet~ae~
: [~B~), Of
f (Address) 4401 Xylon Ave_-a. ze No., New Hope, MN 55428 , BUYER,
5 2. -. OFFERtACCEPTANCE. Buyer offers to purchase and Seller agrees to se:l real property legally described as
(to be' platted as Lot 2, Block 1, Carol James Addition)
~ located at (~[?~t AggEess) 6073 Louisiana Avemue North
,,3 City of ,rlO~ County of Henna 3_n ,4innesota
· ~ 3. ACCEPTANC~.OEADI,.IJtiliL This offer to purchase, unless accepted sooner, shall be null and void at 11:59 P.M.
(datet ot~3e AU~
and in such event all earnest money shall bi to Buyer.
~3 4. ' ' ·
20. ~
'21 ' - ·
22 5~__P_RI_C_E~N~_TF~I~%_;[h_e price for the real and personal properly included in this sale is Seve~te~'~ ~OUM .8~ .~, n(;i~ed
23~wo az]~ ~/&u~Jr._n.~ ...... Dollars ($&/,z'¢ ..... )
24 which Buyer shall pay as follows: Earnest money of $ {') by ( ca~.. ~'~Ao, ~ .v-,c- ),
25
~' w_d_t i_n g_)_a_n d_ _$mcalP' of which is hereby ack~:~l,e~,. .(~e deposited the next cashbusineSSon ,Jdat J~e~e ~¢~. e P 'a n ce, in ir~ccoun, of listing thebr°k'l: ',LOSING,°therwise
26
28 6. DEED/MARKETABLE TITLE. Upon performance by Buyer, Seller shall execute and deliver a ~eral .warranty
29 Deed, joined in by spouse, if any, conveying marketable title, subject to:
30 (A) Building and zoning laws, ordinances, state and federal regulations;
31 (B) Restrictions relating to use or improvement of the property without effective forfeiture provisions;
32, (C) Reservation of any mineral rights by the State of Minnesota;
33. (D) Utility and drainage assements which do not interfere with existing improvements;
34 (E) Exceptions to title which constitute encumbrances, restrictions, or eas~'p,e.~.[s which have been disclosed to Buyer and accep
35 by Buyer in this Purchase Agreement; (Must be specified in wnting.) ,-,u~= ,~.
36.
37.
38 7. REAL ESTATE TAXES ANO ,~EClAI. ASSESSMENTS. Real estate taxes due and payable in and for the year of closi~ prorated
39 between Seller and Buyer on a calender year basis to the actual date of closing, unless otherwise provided in this Agreement.~'.
40 [ Strike out oCe] ......................... . tel U=R SHALL PAY on Date of CIO: ,ta,ment~,~..
41 of special assessments carltlted for payment with the real estate taxes due and payable in the year of closing. .~,~,"~
~2. [ Stnke out one] ---- '~! .~_'~ ' ' .R SHALL PAY ON OJkTE OF CLO~IN(~ all other spacial a~,s~ssment.~e~ied a
44 l Strike out one]~ ............ ' ' ' . __ LL 2L ...... .:. ......... L. SpeCial assessmetlts pending ss
45. agreement for improvements that have been ordered by the City Council or other governmental assessing authorities, (Seller's pr payment
46. shall pe by payment into ascrow of 1V~ times the estimated amount of the assessments.) AS of the date of this Agreement, Seller re hat Seller
47, has not received a Notice of Hasdng of a new public improvement project from any governmental assessing authority, the costs c ~ject may
48. be assessed against the property. If a special assessment becomes pending aftra' the date of this Agreement and before the da ~g, Buyer
49. may, at Buyer's option:
50. A. Assume payment of the pending speCial assessment without adjustment to the purchase agreement pdca of the property;
51. B. Require Sailer to pay the pending spaeial assessment (or escrow for payment of same as provided above) and Buyer sh ommens-
52. urals increase in the purchase pdca of the property, which increase shall be the same as the estimated amount of the ass~ )r,
53. C. Declare this ~t null and _void~by notice to Seller, and earnest money shall be refunded to Buyer. '
54. [Stnke out one]~LLER ~ PAY ON DATE OF CU3~IN~ any deferred real estate taxes or si .~ssments
55. payment of which ia recluired as a result of the closing of this sale.
56. Buyer shall pay real estate taxes due and payable in the year following closing and thereafter and any unpaid special assessment therewith
57. and thereafte~.th.e..,.cayment of which is not otherwise provided herein. Seller warrants that taxes due and payable in the year(s) _._,
58. will b~ ( t:ULL'~.~?. NON-l~rare whicn) homestead classification. Seller makes no representation concerning the amount of fut,, ate taxes
59. or of future si3ecial aasessmenla.
60. 8. DAMAGF.~, TO REAL PROPERTY. If the real property is substantially damaged pdor to closing, this Agreement shall terrain s earnest
61. money shall pa refunded to Buyer. II the real property is damaged materially but less than substantially prior to closing, Buy, scind th~s
62.' Agreement by notice to Seller within twenty.ons (21) days after Seller notifies Buyer of such damage, during which 21-day peripe [y inspect
63. the real pm~. and in the event of such rescission, the earnest money shall be refunded to Buyer.
64 9. SELLER'S BOUNDARY ENE, ACCESS, RESTRICTIONS AND LIEN WARRANT1EE. ' ' '
65 ~Seller warrants that there is a dght of access to the real property from a public right of way.: rants that
66. there has been no labor or material furnished to the property for which payment has not been made. Seller warrants that tl~ ~ present
67. violatio~s of any restrictions relating to the use or improvement of the property. These wan'anties shall survive the delivery of the, ~ntract for
68. deed.
69. 10. CONDITION OF PROPERTY. ........ ' ' '
70 ' ', ....... ,. ' '
7 ~ ...... Seller warrants that the property is connected to: city sewer (~ ;ity water
72 (]~11~10); cable TV (31~1~). Seller shall remove all debris and all personal property not included in this sale from the propa~ )ssess~on
73 date. Sailer has not-received any notice from any governmental authority as to the existence of any dutch elm disease, oak wilt, isease of
74. any trees on the property.
75 Seller's warranties and representations contained in this paragraph 10 shall survive the delivery of the Deed or Contract for I /ided that
76, any notica of a defect or claim of breach of warranty must be in writing and given by Buyer to Seller within one year of the date of cl~ ~ deemed
77 waived.
78 Buyer shall have the dght to have inspections of the property conducted prior to closing. Unless required by local ordinance or ~ulat~on s
79 Seller does not plan to have the property inspected. Other than the representations made in this paragraph 10, the property is bei~ ~ IS" w, h
80 no express or implied representations or warranties by Seller as Jo physical conditions, quality of construction, workmanship s for any
81 particular purpose. (This paragraph is not intended to waive or modify any provisions of MINN. STAT., Chapter 327A.)
EXHi A
MINNESOTA STANDARD RESIDENTIAL PURCHASE AGREEMENT/PAGE 2
· , ~_' 11. DISCLOSURE OF NOTICES. Seller has not rece~vea any notice from any ~overnmentai authority as to violation of any law. ordmance or regula-
? rich. If the property ~s SUOleCt to restrictive covenants, Seller has not received any notice from any person as to a breach of the covenants.
12. TRUTH-IN-HOUSING. Buyer acKnowleages recelot of the Truth-~n-Houslng Disclosure Report or other inspection report if required by the munic-
ipality in which the property is located.
· - 13. POSSESSION. Seller shall deliver possession of the property not later than day of
-; ~ ~:los~ng. All inter~st fuel ~I. h~,uld ~etroleum gas, and all charges for city water, city sewer, electnclty, and natural gas shall be prorated between ~he
parties as of (~B.y 0.[ C.LO51_rl~
14. EXAMINATION OF TITLE. Within a reasonable t~me after acceptance of this Agreement Seller shall furmsh Buyer w,th an Abstract of Title or a
Registered Property Abstract certified to date mc~udincj proper searches covering bankruptcies and State and Federal ludgments, liens, and lewed
and pending special assessments. Buyer shall have ten (10) business days after receipt of the Abstract of T~tle or Registered Property Abstract e~ther
to have Buyer's attorney examine the title and provide Seller with written objections or, at Buyer's own expense, to make an application for a Title
Insurance. Policy and not~fy Seller of the applicabon. Buyer shall have ten (10) business days after receipt of the Commitment for Title Insurance to
proyide Seller with a copy of the Commitment and written objections. Buyer shall be deemed to have waived any title objections not made within the
applicable ten (10) day period for above, except that this shall not operate as a waiver of Seller's covenant to deliver a statutory Warranty Deed. unless
a Warranty Deed is not specified above.
? 15. TITLE CORRECTIONS AND REMEDIES. Seller shell have 120 days from receipt of Buyer's written title objections to make title marketable. Upon
~ receipt of Buyer's t~tle objections, Seller shall, w~thm ten (10) business days. not~fy Buyer of Seller's intention to make title marketable w~thm the 120
99 day period. Liens or encumbrances for liquidated amounts WhiCh Can be released by payment or escrow from proceeds of closing shall not delay the
! ~0 closing· Cure of the defects by Seller shall be reasonable, diligent, and prompt. Pending correction of title, all payments required hereto and the
~? closing shall be postponed.
~ C2. A. If notice is given and Seller makes title marketable, then upon presentation to Buyer and proposed lender of documentation estaPlishmg that
· ,.'.3 title has been made marketable, and if not objected to in the .same time and manner as the original title obtections, the closing shall take place
~0,~ within ten (10) busmess days or on the scheduled closing date. whichever is later.
~ ~5 B. If notice is given and Seller proceeds in good faith to make title marketable but the 120 day period expires without title being made marketable,
! 36 Buyer may declare tms Agreement null and void by notice to Seller, neither party shall be liable for damages hereunder to the other, and
~07 earnest money shall be refunded to Buyer.
108 C. If Seller does not give notice of intention to make title marketable, or if notice is given but the 120 day period expires without title being made
I09 marketable due to Seller's failure to proceed in good faith, Buyer may seek, as permitted by law, any one or more of the following:
~ 10 1. Proceed to closing without waiver or merger in the deed of the objections to title and without waiver of any remedies, and may:
t 11 (a) Seek damages, costs, and reasonable attorney's fees from Seller as permitted by law (damages under this subparagraph (a) shall
1 ~2 be limited to the cost of curing objections to title, and consequential damages are excluded); or,
113 (b) Undertake proceedings to correct the objections to title;
11 ~t 2. Rescission of this Purchase Agreement by not~ce as prowded herein, in which case the Purchase Agreement shall be null and void
115 and all earnest money paid hereunder shall be refunded to Buyer;
116. 3. Damages from Seller including costs and reasonable attorney~ fees, as permitted by law;
117 4. Specific performance within six months after such right of action adsas.
118 D. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of
119 the following Dp{ions, as permitted by law:
120. 1. Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge
121. their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding
122 cancellation;
123 2. Seek specific performance within six months after such right of action arises, including costs and reasonable attorney's fees, as
! 24 permitted by law,
125. E. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by
126. law:
127 1. Seek damagas from Sailer inciuding costs and reasonable attorney's fees;
128 2. Seek specific performance within six months after such right of action arises.
129. TIME IS OF"rilE ESSENCE FOR ALL PROVISIONS OFTHIS CONTRACT.
132.1130'31. if17.16' NOTICES. AIl cotices required herein shall he in writing and delivered personally or mallod to the address as shown at Paragrap~.,..~l.,~o~ andmalled,AGENCyare effectiveDiSCLOSURE.aS of the date Of(Nan1~mailing.o~ sellin~ a~ent or seilir~ broker) D_.._..L...~- J.. ~ ~', C,
133. CLOSES HE OR SHE IS REPRESENTING THE ( - - · -: IN THIS TRANSACTION, THE LISTING
134. AGENT OR BROKER DISCLOSES THAT HE OR SHE IS REPRESEN?.JJ~HE SELLER IN THIS TRANSACTION.
INITIALS--NITIALS__ __ INITIALS ~- /~,,__/ ! -7-7 r INITIALS
{Date) (Date) - ' (Date)
Seller shall pay the initial fee for subdivision of land. ~jrc.~ser shall
nay ~t,. ocner
t
35.
18. SUBI:~dl~ION OF LANO sfl-'l~v,s~'~'~x~enses and
136. obtain all necessary governmental approvals. Seller warrants that the legal description of the real property to be conveyed has been or will be
137 approved for recording as of the date of closing.
138. 19. MINNE~OI'A I. JMl~. This contract shall be governed by the laws of the State of Minnesota.
139. 20. ADO~IONAL TERM,~. ~]liS A~reement is continsent upon approval by the govezning body of Buyer.
t~o Seller certifies that Seller does not know of any wells on the described real property.
14t. Seller shall ~ay all real estate taxes due and payable in 1994 but at clos/ng Buyer shall
t42. pa~ Seller the sma of $48.43 as a pro-rated share of said taxes associate~ with the
t~. suD3ect property. Sellers shall pay ali real esr. ace taxes and spec/si as~e~s~_nCs due
~. a~d payable in 1994 b7 June 14, 1994. Sellers asree that all levied special assessments
~4s. s~m]~ be a lie~ aga/nst Lot 1, Block 1, Carol Ja~es A~kLttion.
146 21. ADDENDA. Attached are (number)__0 addenda which are made a part of this Agreement.
THIS IS A LEGALLY BINDING CONTRAC[ BEFORE SIGNING, CONSULT A LAWYER.
Mlnneeota law permlta Ilcenss,d mai estate brokera and eelee agenta to prepare pumheee agreeme~ta. Ne mcommenda-
I
tion or ml~eeentatto~ ia mede tW either the listing broker or selling brol~ ee to the legal eufftcimlcy, the legal affect, or
the tax consequence~ of thia contract. These ara questlone for your lawyer.
I agree to sell the prope~y for the price and I agree to purchase the property for the price and
terms and conditions set forth above, terms and conditions set forth above.
~ ~~4~ F~on~mic Dev~le~s~nt Authority in and
SELLER BUYER ~'~'[," ~.1.~:~4~-.~ ,~rF~,-_.a.
' -- ' '~'" 'J. CS Exe~OL'3.ve uireccor
Closing shall be at the office of:
Name 1~ ~13[:Na ~ Address 4401 X¥1on Avenue North
Companv/FirmName. City ~ Hope~ ~ Zip
~UA
REQUEST FOR ACTION
Originating Department Approved for Agenda Agenda Section
City Manager 6-13-94 EDA
Item No.
By:Dan Donahue By: 6
CONSIDERATION OF REQUEST BY BROA/DWAY VILLAGE FOR INCREASED LOAN SUPPORT FOR
COMMUNITY CENTER PROJECT, IMPROVEMENT PROJECT NO. 513
The EDA and City Council had previously agreed to support the owner of Broadway
Village Apartments to upgrade their property with a Community Center building.
On February 14, 1994, the City agreed to loan them 50% of the development costs
by using surplus tax increment funds generated by the nearby Anthony James
property (owned by same partners) with payback concluding in year 2003.
The design of the community center ran into problems due to city storm sewer
lines running through the property. Costs have gone up approximately $28,000 due
to the utility pipes so the owners are asking for an increase in the original
loan amount of $142,500. The actual request will be presented on Monday night.
MOTION BY ~ SECOND BY
Review: Administration: Finance:
RFA-O01 ~
IMP. PROJECT 513 President Erickson introduced for discussion Item 4, Resolution Dir~
Item 4 and Authorizing President and Executive Director to Execute Loan/
Documents for Community Center Expansion Project at Broadway \
Apartments (Improvement Project No. 513).
Counciimember Enck asked if the project was initiated due to the (
lot at 62nd and West Broadway. City Manager Donahue stated there
two separate issues: 1 ) the City wanted something done with that (
and asked Lang Nelson if they would consider including that prope
part of the Anthony James project; and 2) Lang Nelson was interes
expanding their Broadway Village apartments and asked if the City,
participate by developing a community center for the complex '
would be accessible to the senior community at large for use.
Mr. Donahue stated that the City has not been able to tie the two pr
together and that was not the City's intent. Mr. Donahue stated th
City will not make one project dependent upon the other. He said
America Group, the owners of the corner property, have indicate~
they wish to proceed with development at 6144 West Broadwa'
regard to the Broadway Village Apartment complex expansi~
significantly upgrades that property and creates a market value that
stabilized, it adds value to the City, and it benefits the complex ar
residents of that property.
Mayor Erickson indicated his support for upgrading the area.
Mr. McDonald said the total cost of the project is $200,000 f~
community center and $85,000 for street lighting for a total of $285
Mr. McDonald stated that the loan/grant proposal requires the EDA a~
land developer to each fund 50% of the development costs fc
community center. The EDA cost contribution would not e
$142,500 and would be funded out of excess tax increment revenu
that TIF district. The developer has agreed to provide the EDA with
exclusive license agreement to utilize the community center for 24
a year over a 20-year period for appropriate public functions.
New Hope EDA February 14,
Page 1
Councilmember Enck commented that this is only possible due to the
available TIF funds.
Councilmember Wehling inquired as to the capacity of the community
room. Mr. Paul Brewer stated that it will hold 68 people. Mr. Brewer
- indicated he would like the Cit~) to handle the requests for use of the
'community center as a control factor. Mayor Erickson stated this could be
handled through the Park and Recreation Department. Mr. Brewer stated
that his only concern is that it does not interfere with their residents using
the building and that is the reason for the 24 meeting/year stipulation (not
exceeding two per month) in the agreement. He said that he anticipates
that evening meetings would not be a problem as the residents use the
community room mostly in the daytime hours.
EDA RESOLUTION Commissioner Wehling introduced the following resolution and moved its
94-01 adoption: "RESOLUTION DIRECTING AND AUTHORIZING PRESIDENT
Item 4 AND EXECUTIVE DIRECTOR TO EXECUTE LOAN/GRANT DOCUMENTS
FOR COMMUNITY CENTER EXPANSION PROJECT AT BROADWAY
VILLAGE APARTMENTS (IMPROVEMENT PROJECT NO. 513)". The
motion for the adoption of the foregoing resolution was seconded by
Commissioner Williamson and upon vote being taken thereon, the following
voted in favor: Erickson, Enck, Otten, Wehting, and Williamson; and the
following voted against: None; Absent: None; whereupon the resolution
was duly passed and adopted, signed by the president which was attested
to by the executive director.
New Hope EDA February 14, 1994
Page 2
" LOAN/GRANT COMMITMENT
TO: Broadway LaNe]/Golle Holmes, a Minnesota Limited Partnerst
(hereinafter referred to as the "Borrower"):
The Economic Development Authority in and for the City of
Hope (hereinafter referred to as the "EDA") hereby apprc
Borrower's loan request (hereinafter referred to as the "Loan")
the community center rehabilitation and expansion and str
lighting improvement (hereinafter referred to as the "Projecl
The proceeds of the Loan are to be used exclusively to successf~
complete the Project.
This Commitment is subject to the following terms
conditions:
1. Principal Amount of Loan. The amount advanced pursL
to the Loan and Promissory Note evidencing the Loan shall
exceed One Hundred Forty-Two Thousand Five Hundred and 00/
Dollars ($142,500.00).
2. Loan Interest Rate. The Loan shall be made as a defer
repayment loan, and therefore there shall be no interest paic
said Loan un]ess Borrower defaults on any of the terms of t
Commitment, the Building Loan/Grant Agreement or the Promis~
Note. In the event of default by Borrower, the interest sha]~
eight per cent per annum computed from the date of default.
3. Repayment of Loan. The Loan shall be immediately due and
payable, in accordance with the repayment terms contained in the
Promissory Not.e-~eferred to in Section 4.A. herein, upon the
occurrence of any of the following events within a ten (10) year
time period from the date hereof.
A. If, without the written consent of the EDA, the
Property, as more fully described on Exhibit A attached hereto
and made a part hereof, ceases to be used as a "for profit"
apartment complex with community center for benefit of the
complex residents and public per the License Agreement and
strip shopping center upon which the street lighting
improvements are intended to be made.
B. If, without the written consent of the EDA, which
consent will not be unreasonably withheld, Borrower
voluntarily sells, transfers, or otherwise conveys, in any way
or manner, its fee interest in the Real Property unless Buyer
accePts all of herein terms and conditions, will be bound by
same, and the EDA consents to the conveyance.
C. If any Event of Default occurs under the Promissory
Note, Buildin9 Loan/Grant Agreement, or License Agreement
referred to in Sections 4.A-C herein.
If none of the events specified.in this Section 3 occurs
within ten (10) years from the date the Loan is closed, then the
Loan will no longer need to be repaid, and will be extinguished and
canceled and tHe Promissory Note shall be deemed paid in full
returned to Borrower.
4. Lo&n_.Closing. As a condition precedent to the
disbursement of the Loan, each of the following shall be delive
to the EDA in form and substance satisfactory to the EDA:
A. A fully executed Promissory Note (hereinaf
referred to as the "Note"), in substantially the same for~
the document attached hereto as Exhibit A.
B. A fully executed Building Loan/Grant Agree~
(hereinafter referred to as the "Building Loan/Gr
Agreement"), in substantially the same form as the docu~
attached hereto as Exhibit B, which controls the disburse~
of the proceeds of the Loan.
C. A fully executed License Agreement attached heret¢
Exhibit C, which grants the City of New Hope and the ED
non-exclusive right to use Borrower's community center
public meetings and civic functions, as provided in
License Agreement.
D. Evidence of Tit3e establishing Borrower has
title to the property in a form satisfactory to the EDA.
E. Evidence that Borrower has obtained fire and exter
coverage insurance, in an amount equal to the lesser of
amount of the Loan or the full insurable value of the Proje
with the-EDA named as loss payee therein.
F. 'All such other documents, instruments and/or items
which the EDA may reasonably require.
5. Financial Requirements. Prior to, or concurrently with,
the disbursement by the EDA of any of the proceeds of the Loan, the
Borrower shall deliver to Commonwealth Land Title Company as
disbursing agent an amount of One Hundred Forty-Two Thousand Five
Hundred ($142,500.O0), which is the estimated amount of funds it
will take to complete the Project over and above the amount of the
Loan. The parties may elect to fund on a pro-rata basis as needed.
6. Changes in Conditions. Any substantial changes in the
plans and specifications upon which this Loan/Grant Commitment is
based which shall occur after the date hereof must have the written
approval of the EDA prior to the closing of the Loan, which written
approval shall be subject to such conditions as the EDA may deem to
be appropriate.
7. Term of Commitment. This Loan/Grant Commitment shall
terminate May 1, 1994 unless the closing of the Loan/Grant shall
have occurred prior to such date, or un]ess this Loan/Grant
Commitment is renewed or extended by the EDA. Subsequent to the
closing of the Loan, the termination date for this Loan/Grant
Commitment shall be as provided in the Building Loan/Grant
Agreement.
8. Effectiveness of Commitment. This Loan/Grant Commitment
shall not become effective unless the accompanying three (3)
duplicate copies hereto are returned to the EDA, with acceptan
endorsed thereon'by the signature of the party or parties indica
below, or theic authorized agent, on or before May 1, 1994.
9. Mutual Enforceability of Loan/Grant Commitment. T
Loan/Grant Commitment shall be mutually enforceable by eit
party, and either party hereto may apply to any court, State
Federal, for specific performance of the agreements
requirements contained herein, and for such other relief as may
appropriate, since the injury to the EDA arising from any fail
to comply with the requirements contained herein would
irreparable and the amount of damage would be difficult
ascertain.
10. Assignment or Transfer of Loan/Grant Commitment. T
Loan/Grant Commitment shall not be assigned or transferred with
the prior written consent of the EDA.
11. Additional or Special Conditions. This Loan/Gr
Commitment is subject tO the following or special conditions, wh
are hereby made a part hereof: Non recourse to all of the partn
of Borrower.
Dated: ,~7~4 /~ /'~'/ ECONOMIC DEVELOPMENT AUTHOR
BY/its
5
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