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052493 EDA OFFICIAL F~LE COPY C~Y OF NEW HOPE EDA AGENDA EDA Regular Meeting//8 May 24, 1993 Agenda//8 President Edward J. Erickson 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 May 10, 1993 4. Discussion Regarding Addendum to City of New Hope Development Contract for Autohaus Addition (Improvement Project No. 467) 5. Resolution Establishing the New Hope EDA Support for Co-op Northwest Community Revitalization Corporation, F/K/A New Hope Community Revitalization Corporation 6. Adjournment CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes May 10, 1993 Meeting #7 CALL TO ORDER President Erickson called the meeting of the Economic Development Authority to order at 10:46 p.m. ROLL CALL Present: Erickson, Enck, Wehling, Otten, Williamson APPROVE MINUTES Motion was made by Commissioner Otten, seconded by Commissioner Enck, to approve the EDA minutes of April 26, 1993. All present voted in favor. Motion carried. IMP. PROJECT 462 President Erickson introduced for discussion Item 4, Motion Approving Item4 Supplemental Corrective Action Design Workplan for 42nd/Nevada Avenues Soil Contamination Cleanup (Improvement Project No. 462). MOTION Motion was made by Commissioner Enck, seconded by Commissioner Item 4 Otten, approving supplemental corrective action design workplan for 42nd/Nevada Avenues soil contamination cleanup (Improvement Project No. 462). All present voted in favor. Motion carried. IMP. PROJECT 462 President Erickson introduced for discussion Item 5, Approval of Bid Item 5 Submitted by Bergerson-Caswell, Inc. for Groundwater Quality Monitoring Well Construction for 42nd/Nevada Avenues Soil Cleanup Project (Improvement Project No. 462) in the amount of $6,982.00. MOTION Motion was made by Commissioner Williamson, seconded by Item 5 Commissioner Enck, to accept the bid submitted by Bergerson-Caswell, Inc. for groundwater quality monitoring well construction for 42nd/Nevada Avenues Soil Cleanup Project {Improvement Project No. 462) in the amount of $6,982.00. All present voted in favor. Motion carried. JOINT AGREEMENT President Erickson introduced for discussion Item 6, Resolution Approving Item 6 Joint and Cooperative Agreement Between North Metro Business Retention and Development Commission and City of New Hope; Authorizing the EDA's President and Executive Director to Sign. Mr. Donahue explained that New Hope has been invited to join the Cities of Blaine, Brooklyn Park and Brooklyn Center in a joint effort aimed at obtaining comprehensive information about the needs of our business community for the purpose of retaining those businesses in the future by serving them better and meeting their needs. The service to be provided this year will be a survey of the City's largest 100 businesses. Commissioner Enck asked whether there is any cost commitment on the City's part. New Hope EDA May 10, 1993 Page 1 Mr. Donahue stated if the City wishes to stay with the Commission, then there may be a future assessment of approximately $30,000 per year. Decisions can be made next fall regarding continuation for 1994. Commissioner Wehling inquired whether this will provide adequate time to complete the survey. Mr. Donahue stated the survey of 100 businesses is part of the project which will be completed at no cost even if it continues into 1994. EDA RESOLUTION Commissioner Enck introduced the following resolution and moved its 93-08 adoption: "RESOLUTION APPROVING JOINT AND COOPERATIVE Item 6 AGREEMENT BETWEEN NORTH METRO BUSINESS RETENTION AND DEVELOPMENT COMMISSION AND CITY OF NEW HOPE; AUTHORIZING THE EDA'S PRESIDENT AND EXECUTIVE DIRECTOR TO SIGN". The adoption of the foregoing resolution was seconded by Commissioner Wehling, and upon vote being taken thereon; the following voted in favor thereof: Erickson, Otten, Enck, Williamson, Wehling; and the following voted against the same: None; Absent: None; whereupon the resolution was declared duly passed and adooted, signed by the president which was attested to by the executive director. ADJOURNMENT Motion was made by Commissioner Williamson, seconded by Commissioner Enck, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 10:49 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA May 10, 1993 Page 2 ~(~~~ ~ REQUEST FOR ACTION Originating Department Approved for Agenaa Agenda Section City Manager EDA 5-24-93 Kirk McDonald I ) Item No. By: Management Assistant By:// 4 DISCUSSION REGARDING ADDEN~DUM TO CITY OF NEW HOPE DEVELOPMENT CONTRACT FOR AUTOHAUS ADDITION (IMPROVEMENT PROJECT NO. 467) This matter was tabled at the April 26th EDA meeting with the understanding that the City Engineer and staff would review the storm sewer requirements included in the plan and bring a recommendation back to the EDA. As you are aware, Autohuas is requesting that the $26,000 bond on the project for storm sewer improvements be released so that those funds could be utilized for improvements to the front of the site. It is staff's intention to try and view the Autohaus site prior to the EDA meeting and be prepared to make a recommendation on the necessity of the storm sewer improvements. The attached Development Contract and Resolution were presented at the April 26th EDA meeting. If the EDA determines to delete the storm sewer improvements, the Development Contract will need to be modified. MOTION BY ~ SECOND BY ~/~[ ~ Review: Administration: Finance: RFA-O01 Ii _ ot:Mirmm, t olis, Inc. LEASING ge SALES/FOREIGN AND DOMESTIC AUTOMOBILES Audi March 18, 1993 GM FORD Mr. Dan Donahue, City Manager Mr. Kirk McDonald Management Assistant/Community Development Coordinator NISSAN City of New Hope 4401 Xylon Avenue North HONDA New Hope, Minnesota 55428 RE: Addendum to City of New Hope Development Contract CHRYSLER with Autohaus of Minneapolis, Inc. ~ Dear Mr. Donahue and Mr. McDonald, Thank you for your letter of February. 19, 1993. As you know, we would like to BMW complete the proposed work as soon as practical, but would reiterate some of the things that I told you of. MERCEDES First of all, we were planning on doing the work north of the south line of the building last fall. Because of the weather and scheduling conflicts, that could VOLVO not be accomplished. We are planning on having that work completed as soon as the spring weather and road conditions would allow. ACURA We would request the City, though, to help this project, release the certificate of deposit in the amount of $26,300 to fund a portion of this work. As you know, T O Y O T A the car sale business has been slow and I have had some internal accounting problems here that have delayed and affected our ability to complete the work initially contemplated in a timely fashion. PORSCHE I would also like to remind you of the $187,000 initially borrowed. That balance JAGUAR is now down to approximately $118,000. We have been trying to pay that in advance as cash flow would allow, and our records reflect that we have paid approximately $23,000 ahead of schedule. I would request that you take that into consideration in releasing the certificate of deposit. 7709 42nd Avenue North ~r Minneapolis, MN 554£7 ~r (812) 555-5707 Page 2 City of New Hope, March 18, 1993 I would also like to note that we have done a substantial amount of improvements and betterment to the property. We have painted the building, installed new awnings and have a new sign ordered to be installed this spring. The building's aPPearance has been dramatically improved by these efforts. In regard to the back portion of the lot, we would request that you allow a delay of between three and four years to complete that part of the work. You know that we have done a lot of work back on that property, too, and have done grading after removing bad material and products that have been dumped there. We have also grassed in the area, so it will be neat in appearance. The automobile industry has been severely hampered by the economic recession that we have had. In the history of the United States, automobile companies themselves have suffered some of the largest losses in history. Our business is progressing, but we have not made the strides, nor had the sales that we had hoped for, and that is another reason for the request for delaying some of this additional work. We have removed the building in the front part, which was an eyesore, and are doing everything within our power to meet these development goals and deadlines. We would appreciate your consideration for this last request. I will be waiting to hear from you in the hopes that we can resolve these matters on an amicable basis. Thank you for your consideration. . /' . Sincerely, / AUTOHAUS~OF MIJ~NEAPOLIS, INC. Tho~a~Bo~cher, President Ih Vice President aware of it prior to the purchase of the property. Mr. Lang maintained his position of not being able to concede to the $10,000 stipulation. MOTION Motion was made by Commissioner Williamson, seconded by Item 4 Commissioner Wehling, approving Execution of Addendum to Assessment Agreement without the $10,000 payment clause. Preceding voting on the motion, Commissioner Enck requested clarification on the minimum market value. The City Attorney stated the market value will be determined by the Hennepin County Assessor with the minimum market value set at $5,000,000. He also clarified that based on the preceding motion the language regarding the $10,000 payment will be deleted from the Addendum. VOTE ON MOTION Voting in favor: Williamson, Wehling, Otten, Erickson, Enck; Voting Against: None; Motion carried. Commissioner Enck conveyed his support for the amendment and pointed out that the original purpose of the contract was to satisfy the debt of the tax increment financing bonds. Commissioner Otten indicated that the EDA is very pleased with the new ~ ~-~ ............ management and hopes Mr. La ng has not been offended by any discussions which have taken place. JECT 467 ~ President Erickson introduced for discussion Item 5, Resolution Authorizing (?m, Item_ 5 j ~//~ Addendum to City of New Hope Development Contract for Autohaus ~.~. - ~-t'--_5 ...... ..... · Addition (Improvement Project No. 467). Mr. Donahue stated on April 12th the EDA approved an extension to the development contract between the City and Autohaus. As a result, an addendum to the development contract has been prepared and is now before the EDA. The Addendum does not release the Letter of Credit, as requested by Autohaus, and Autohaus would like to discuss this further. Mr. Donahue explained that when ha recommended return of Autohaus' advance payments of $22,000, he was unaware of their refinancing efforts. He stated as part of the refinancing, Autohaus is using the excess $22,000 as part of the basis for the new mortgage. The request by Autohaus is to be relieved of the $26,000 letter of credit obligation which guarantees the developments. Commissioner Enck cautioned the EDA against releasing the letter of credit as it would be a significant precedent setting move in the City of New Hope. He pointed out that the financial guarantee is designed to guarantee certain development work and the project is not yet complete. President Erickson questioned the possibility of the EDA holding the New Hope EDA April 26, 1993 Page 3 , $22,000 advance payments to guarantee completion of the development work. Mr. Sondrall commented that even if President Erickson's suggestion was permissible, it would not assist Autohaus since earmarking the $22,000 for development improvements would affect their financial Situation pertaining to the refinancing issue. Discussions continued regarding the improvements. Mr. Oestreich contended that the financial .security was required for assurance of proper storm sewer work when the rear property is developed. He continued by stating since they entered into the contract the auto business has changed. He emphasized that they have dramatically improved the rear portion of the site by removing debris and planting grass. He mentioned the poor economy and that they have tried to cut their overhead including personnel cuts. Mr. Oestreich continued by reporting the drainage on the rear property is adequate and wondered whether the EDA would release the financial guarantee if Autohaus agreed to forego future development of that portion of property. He also made reference to higher property taxes due to the purchase of the animal hospital property and school district property. He stated the property was consolidated into one large parcel causing real estate taxes to increase by $9,000. : Mr, Oestreich concluded by pointing out they desperately need the funds freed up in order to finish the front lot improvements (sign, paving, landscaping, sidewalks, and front entrance). The EDA expressed its desire for Autohaus to conclude the development. Mr. Hanson confirmed that the $26,000 guarantee was required because at the time Autohaus purchased the property from the school district they planned to pave the rear area. The improvements included developing a storm sewer system that would collect water from the bus garage plus the new part of their site. The storm sewer system would bring the water to a retention pond that would treat the storm water from the drainage area before discharging it into the wetland (Old Dutch Pond). He pointed out that the Autohaus property must be dealt with in accordance with the wetland standards; however, if Autohaus' plans haVe changed, the storm sewer improvements may not be warranted. Mr. Sondrall raised the issue of amending the original development contract. He stated the purpose of the loan was to allow Autohaus to make private improvements plus public improvements for which the City required a financial guarantee. He commented that currently the development contract is such that it requires Autohaus to improve the rear area and provide storm sewers. If Autohaus fails to improve the back portion of their lot, they would be in default and the EDA could enforce the contract by taking legal action. He continued by stating the contract can be amended if the EDA desires New Hope EDA April 26, 1993 Page 4 to relieve Autohaus of certain obligations involving the rear property. The contract could be amended to proVide Autohaus the option versus the requirement to make rear lot improvements. He pointed out that by providing this as an option, the financial guarantee would not be necessary until they actually request permission to develop the area. President Erickson stated the City has cooperated extensively with Autohaus and if necessary may have to provide another extension to the deadline for the rear property improvements. Commissioner Williamson suggested re-negotiating the development contract and reconsider the necessity of drainage work in the rear of the property. President Erickson stated the main objective of the contract was completion of the front yard improvements. Mr. Donahue offered to review the site with the City Engineer and make a recommendation regarding the contract at a future meeting. President Erickson suggested EDA members join staff to physically view the Autohaus site. MOTION Motion was made by Commissioner Wehling, seconded by Commissioner Item 5 Williamson, tabling approval of the Addendum until May 10, 1993, and directing staff to prepare a recommendation regarding storm sewer requirements. All present voted in favor. Motion carried. ADJOURNMENT Motion was made by Commissioner Enck, seconded by Commissioner Ottsn, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:47 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA April 26, 1993 Page 5 April 23, 1993 Kirk McDonald Management Asst. City of New Hope 4401X¥1on Avenue North New Hope, MN 55428 RE= Autohaus Addition Our File No, 99.15025 Dear Kirk: Enclosed please find a proposed Resolution Authorizing Addendum to City of New Hope Development Contract for Autohaus Addition. If you should have any questions, please contact me. Sincerely, Martin P. Malecha s3f Enclosures cc: Daniel d. Oonahue Valerie Leone (w/eno) Steven A, $ondra11, Esq. RESOLUTION NO. 93- RESOLUTION AUTHORIZING ADDENDUM TO CITY OF NEW HOPE DEVELOPMENT CONTRACT FOR AUTOHAUS ADDITION BE ZT RESOLVED by the City Counctl of the City of New Hope as follows: 1, That the Addendum to City of New Hope Development Contract between the City of New Hope, Autohaus of' Minneapolis, Inc., and Thomas Boettcher, attached hereto as Exhtbit A~ which modifies the original Development Contract between the parties dated Apr~l 4~ 1991~ is in the best ~nterest of the CJty~ ts hereby approved ~ and the C~ty Manager and Mayor are hereby authorized to s~gn satd Addendum. Adopted by the C~ty Council this _ day of Apr~l~ 1993. Edw, d. Ert¢kson, Mayor ..... Attest= Valerie Leone, Ctty Clerk ADDENDUM TO CITY OF NEW HOPE DEVELOPMENT CONTRACT 1. Part~e~. The parties to this Addendum are the City of New Hope (hereafter City)~ Autohaus of Minneapolis, [nc. (hereafter Autohaus) end Thomas W. Boettcher~ ~ndividually (hereafter Boettcher). 2, Purpose. This Addendum shal~ modify the Aprtl 4, 1991 Development Contract entered ~nto by the partieD. Autohaus and Boettcher acknowledge and agree that they ere in breach of the performance conditions of said contract and in consideration for the City's agreement not to Immediately pursue its remedies under the terms of the April 4~ 1991 contract aoettcher and Autohaus have agreed to enter into this Addendum. 3. UnDerform~ Cqndt[ions. Specifically, Autohaus and Boettcher acknowledge and agree that they have fa~led to perform all the requirements of paragraphs 2.A) through Z) and 3 of the Development Contract, With respect to the work required by these provisions the parties hereto agree es follows: a,) The ~nstallation of concrete curb from the most southerly wall of the building northward to the property ltne shall be completed by October 31, 1993. The remainder of the curbing aD shown on the site plan shal~ be insta~ed by October 31, 1994. All curbing shall be of a surmountable type es approved by the City, Autohaus and Boettcher shall submit a diagram of said curbing fo~ approval to the City prior to ~nstallation, b.) Znstallation of bituminous paving ~n the body shop and repair storage area sha~l be completed by October 31~ 1994, c.) All plant~ngs shown on the s~te plan north of the buildings most southerly wall shall be ~nstalled by October ~1~ 1995. All other plantings shown on the site plan shall be ~nstalled by October 31, 1994. d.) The six-foot opaque security fence around the per,meter of the body shop and collision repair storage area shall be installed by October 31~ 1994. The existing fencin~ shall remain in place until the .new security fence is installed. E~bit A e,) The installation of lighting shown on the site plan eha11 be completed by October 31, 1995, 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 l~ghttng required by the site plan. f.) All planted areas completed ~n 1953 will be sprinkled by October 31~ 1993. All planted areas completed in 1994 will be sprinkled by October 31, 1994, g.) The installation of the outdoor trash enclosures will be completed by October 31, 1994. h.) The front display area will be completed by October 31, 1993. However, the parties agree that the front d~splay area can be paved with concrete and bjtumlnous. ~.) The islands tn the transport lane area will be installed by October 31, 1994. j.) The public improvements for storm water drainage and erosion control required by paragraph 3 of the Oevelopment Contract must be completed tn conjunction with the construction of the bituminous paving tn the body shop and repair storage area. Autohaus and Boettcher &cknowledge =nd agree said bituminous paving will not be allowed unless the drainage and erosion control work ~s completed simultaneously with the paving work all to be completed no later than October 31, 1994. Effect of Adde.~du~. The parties agree that this Addendum shall not change the other provisions of the April 4, 1991 Development Contract which shall remain ~n full force and effect. This Addendum shall be construed as supplemental to and not inconsistent w~th the Development Contract. The parties further agree that a breach of this Addendum shall &1so constitute a breach of the Apr~l 4, 1991 Mortgage, ~ecurtty Agreement and Fixture Financing Statement given by Boettcher to secure the April 4, 1991 Mortgage Note executed by Boettcher, Autohaus further agrees that the assignment of the Certificate of Deposit 9~ven as financial security to insure performance of the Development Contract shall also extend to this Addendum. CITY OF NEW HOPE Dar ed: . By It s Mayor Dar ed: By Its City Manager AUTOHAUS OF MINNEAPOLIS, [NC. Dar ed: By Its President Dar ed: ........ ThomasW. Boettcher, individually STATE OF MINNESOTA ) ) ss, COUNTY OF NENNEP[N ) The foregoing wes acknowledged Before me this~ day of , 1993, by Edw. J. Er~¢kson ~nd Da~el J. Donahue, the Mayor and City Manager, respectiYely, of the City of New Hopes & Minnesota municipal corporation, on ~ehalf of sa~d municipal co~poratton. Nota'~y-Public STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEP[N ) The foregoing was acknowledged before me this . day of .. , 1993, by. ._ , the President of Autohaus of M{nn~p°li~, 'Znc., a Minnesota corporation, on behalf of said corporation. Notary Public STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) The foregoing was acknowledged before me this day of , 1993~ by Thomas W. Boettcher, individually. Notary Public c:\wp51\autohaus.add 4 '.~ q/~,.] REQUEST FOR ACTION Originating Department Approved for Agenda Agenda Section City Manager EDA 5-24-93 Kirk McDonald [~ Item No. By:~ By: Management Assistant 5 RESOLUTION ESTABLISHING NEW HOPE EDA SUPPORT FOR CO-OP NORTHWEST COMMUNITY REVITALIZATION CORPORATION, F.K.A. NEW HOPE COMMUNITY REVITALIZATION CORPORATION The New Hope Community Revitalization Corporation was originally established as a non-profit entity for purposes of passing funds on to assist with the construction of Winnetka West, the 26- unit housing facility for disabled persons. City staff is proposing that this non-profit entity now be expanded to include all 5 cities involved with the Co-op Northwest Community Revitalization Corporation. The 5-City non-profit organization would have access to Federal housing funds through a competitive grant process that otherwise would be unavailable to local units of governments. The enclosed resolution states that the EDA supports the concept of the Co-op Northwest Community Revitalization Corporation and directs staff to support the creation and operation of the 5-City non-profit organization. Staff recommends approval of the resolution. Review: Admin/stration: F~nance: RFA-O01 ~ r.!~'-r'--z~--~5 rHu 1 -L ; 1 ? ~;;ORR · ~Z.;K & SOI'--II) RALL P . 02 May 20, 1993 Dante1 d, Donahue City Manager City of New Hope 4401Xylon Avenue North New Hope~ MN 55428 RE; CO-OP Northwest Community Revitalization Corporation Our File No: 99.1002~ Dear Dan: Enolosed you wi1] find a Resolution supportln9 the CO-OP Northwest effort, This Resolution can be considered at the next EDA meeting. As usuals the or~9inal has been forwarded to Valerte, along with a fax to K~rk. Please contact me if you have any questions. Very truly yours~ M~rttn P. Malecha slt Enclosure cc= Kirk McDonald (by Fax) Valerte Leone (w/eno) MAY--20--9~ THU i i : 1~ CORR I CK ~ SONBRALL P . 0~ EDA RESOLUTION 93- RESOLUTION ESTABLISHING THE NEW HOPE EDA SUPPORT FOR CO-OP NORTHWEST COMMUNITY REVITALIZATION CORPORATION, F/K/A NEW HOPE COMMUNITY REVITALIZATION CORPORATION ~, the City of New Hope (City) and the Economic Development Authority in and for the City of New Hope (EDA) support providing adequate, safe and sanitary housing to City residents, and WHEREAS, the City and the EDA are involved in a variety of housing programs to meet this goal, and WHEREAS, part of .the City's comprehensive housing program and redevelopment efforts can be furthered by a non-profit organization which has a major goal of improving the quality of housing available to City residents, and ~, the City and its people would also benefit from a non-profit organization which has additional goa3s of improving human service and Jobs and training opportunities, and WHEREAS, such a non-profit organization may have access to funds otherwise unavailable to local units of government, and WHEREAS, such & non-profit organization would also promote more lo¢al control over these activities, and WHEREAS, al~ of the above are part of the goals and benefits of CO-OP Northwest, a task force involving the Cities of New Hope, Crysta3, Robbinsdale, Brooklyn Center and Brooklyn Park, and HE.~_.~~, attaining these goals and benefits can be enhanced by changing the New Hope Community Revitalization Corporation into a non-profit CO-OP Northwest Community Revitalization Corporation, and WHEREAS, support of CO-OP Northwest and its goals, and changing the New Hope Community Revitalization Corporation into CO-OP Northwest Community Revitalization Corporation, will be in the best interests of the City and its people. M~¥_20--~ THU li:i~ CORRICK & $ONDRALL P.04 NOW, THEREFORE~ BE IT RESOLVED that the Economic Development Authority ~n and for the City of New Hope as follows: 1, That the EDA supports CO-OP Northwest and the CO-OP Northwest Community Revitalization Corporation and goals of providing adequate, safe and sanitary housing, and improving human services and jobs and training opportunlttes. 2. That the EDA staff ~s directed to take such actions as are reasonable, necessary or convenient to support CO-OP Northwest and the creation and operation of CO-OP Northwest Community Revitalization Corporation, Dated: ., 1993. Edw. J. Er~ckson~ President Attest: ~antel J.-DonahUe, E~eout~ve D~recto~ MEMO TO: Jerry Splinter Dan Donahue Jerry Dulgar Fran Hagen Craig Rapp MEMO FROM: NWHH$C and the CO-OP Northwest Plannees Group MEMO DATE: May 18, 1993 SUBJECT: Five City and NWHHSC application t~or a CHDO Enclosed you will find information on the requirements for a Community Housing Development Organization or CHDO. , CO-OP Northwest had explored the possibility of applying for a~ CHDO as a five city group when the project began. It is necessary to have a designated 501 C3 non-profit status to apply ~to becrme a CHDO. Further this non-profit must be comprised of one third 'Iow income participants as well as one third public sector and one third private sector. New Hope has a designated 50I C3 organization entitled the Co~amunity Revitalization Corporation created for the development of specialized housing in New Hope. New Hope expressed a willingness to open up its existing 501 C3 to the other cities. We met with their lawyer on May 13 to discuss revising the by-laws. This was done and the existing board met on May 17 and voted to dissolve its existing structure to enable a CHDO to be formed. We met with the Brooklyn Park HRA on May 13 as well. They voted to join in this joint effort. We need to have resolutions passed by the particilating cities and/or the sign off of the city managers to proceed with this process. We have set aside Tuesday, March 25 from 1:00 to 4:30 p.m. t6 work on the proposal for funding which is due to Hennepin County by June 1. Application for funding could provide additional funds for housin[[ rehab in the participating communities. Currently 15% of HOME funds allocated to suburban Hennepin County are designated for CHDOs. CHDO funds are available to provide housing assistance to families at or below 80% of the median income. None of the $240,000 in 1.992 CHDO HOME funds have been used yet and there are $165,000 for 1993 available as well. Hennepin County anticipates that $240,000 will be available in I994. Their is a match for the actual rehabbing projects, but this can be accomplished through staff in-kind time or through the difference in mortgage rates. At most, if cash were contributed to the project, the cost would be 25% of the total. If you have any questions, feel free to call Dave Greeman or Patty Wilder at 493-2802. REQUEST FOR PROPOSAL '' - g~.NNEPIN HOU$INH CONSORTIUM INVESTMENT PARTNERSHIPS PItOHRAM HennepEn Housing Consor~iu~ announces ~he availabil£ty o~ $~.~0~ m£~lion in ay&liable 1993 federal Home Investment Partnership ~o~rim (~O/t~) funds. There remains $253,350 in 1992 funds available for qualified Community Housing Development 0rganiza=ions PROJECT AILSA The Hen=spin Housin~ Consortium represents all A5 suburban Hennepin County colunt=ies. Projects must be located in suburban Hennepin County, PR/ORITIES Hennepin Housin~ Consortium has established as priorities for the ac=tviC~es which propose affordable housing o~ a lon&-=erm basis for: · very low-income families (at or below §0% of area median income); · homeless families and individuals: · persons wtCh special needs (Rhysical, developmental, men=ally ill, AIDS, chemical deRendency); and · which, when appropriate, provide supportive services. Proposals ~or HO~ funds are limited =o =hose addresstn~ =he above priorities through the followln6 types of activlt£es' new cons=ruction, related infrastructure, substantial and moderate rehabilitation for small and large families · ~odera=e rehabilitation for existing homeowners · moderate and substantial rehabilitation and acquisition for homeless famiIies and individuals and persons with special needs Proposals =o excluslvely serve the elderly or provide tenant-based rental assistance w[ll no= Be accepted durtn& the ini=£al fundln~ process. Community Housing Development Organizations ¢¢~DOs) may use funds families or ~ndividuals with low-incomes (up ~o $0 percent of area median income). Thls wilI allow CHD0s to under=eke activities involving homeowner- ship. ~en=al housing w~ch a mixed tncom~ rental structure c*n be assisted; howevtr. all HOHE assisted units must meet the above cricerta.~ ~PPLICANTS Eligible applicants include governmental agencies, non-profit agencies and for-profiu entities. Requests for asses=ante to individuals will hOC be accepted. PRO'frAM RE~UIREHENTS Appltcancs mus= comply wi=h all requiremen=s of the Home Inves=men= Par=ner- pro~r~ are included in =he ~P packeu. A con=fac= ounlinin~ doc~en=s ara available upon r~ques=. ~ere is a federal ma=~h requiremen= for =he I993 fun~s: 30 per=anT f~r new co~=~c:Ion, 2~ p,=cen= fo= all ocher ac:ivi=les. ~e ma=ch =a~= replace pr:jec= e~uiT%. I= is =he responsibili=y of =he appli=an= =o sec~a ~der sections 92.218.92.2~0.) He~epin Coun=y wtll review =he a~pltcaclon and cer=~fy whe=her or no= the proposed ac=iv~ is cons is:enu wi=h =he Henna, in Ho~in~ Co~or:i~ Co.ra- w, ch =he C~S tn or,er co be eligible for ~0~ f~din&. HO~ assis=ed uni=s built prior :o 1978 and which may po=encially be occupied by small child=eh m~: be =as=ed zo determine if a [aad-~ased pain= hazard axis=s. Tes=in~ shall in~iu~e =he use of an x-ray fluorescen~ analyzer appropriate A pain=e~ surface iden=ified as havin~ a lead con=enu ~reazer uhan or equal 1 m~/c~ ~= be abated in accordance w~ch ~ regulations. HO~ F~IN~ LIMITATIONS Minim~ HOME per uni= invescmen= - $1,000. Haxi~ HOME per uni= investmen= - $53,39~ - 0 bedrooms $96,283 3 bedrooms $61,207 - 1 bedroom $105,690 = bedrooms $T&,a27 - 2 bedrooms ~e rehabili=acton of exiscin$ homeo~ership proper:ies or proper=les bein~ assis=ed =hrou~ a firs=-time homebuye=s pro,ram must have an appraised value, al=er rehahili=a=ion, which does hoc exceed =he 203(b) mor=~aga limi= for the area. In ~ennepin Coun=y =hose limi=s are as follows: $110,200 - 1 f~ily and condomini~ uni= $150,800 - 3 family $12a,100 - 2 family $17A,000 - a f~ily 1993 HOME assis:ed units mus= be occupied by very-low income households (50% or ~elow of area medi~ incom~) and bear nonpublicly-assis=ed mon=hly INCLUDING u=ili~ =os=s which do no= exceed as folio~s: . Sas0 - Efficiency $663 3 ~edrooms $a78 - 1 Bedroom $740 a Bedrooms ~n=s whi=h ar~ subsidized can n~var ~c~ed the lesser of Section 8 Fair Ha~kec ~en=s (FMR) or ren=s which are 30 percent of adjusted incom, for households aC &5 percent of median income. ~o~h o~ chase ren~s a~e published by ~D. ' i _ III I I , __ III I__ FUNDZ~G COIm~TI~NTS ?~o~ec~s ~i~ be selected based upon established revie~ and ~ank£n~ c~iCe:ia. A Selection Comm£ccee consiscin~ o~ s~ven representatives of the Consorci~o ~l~ ~ke & fund£n~ recommendaC£on co the Co~nc~ So&~d. ~e initial fuadin~ co~i~en~ ~ill se~e as a prei~mtna~ co~i~enc. ~i~l Co~i~en= w~ll be made ac =he poin:a con=racu~l a~reemen= has been executed. ~ER~D F~ING A m[n~ of 1~ percent of =he 1993 HOHE funds, $16~.900 and $253.350 ~n 1992 HO~ funds, is rese'~ed for housin~ =o be developed, sponsored or o~ed Co~i:y Ho~in& Deve%opmenn Organizations (CHDO~). Proposed ac:ivi:ies meet ~e es:ablished lundin& Ten (10) percen: of :he funds will b. utiliz.d by Hennepin Co~ty co defray a~inis:ra~ve costs. Proposed activities located tn Bloomtn&ton or Pl~ou:h which score more :han 80 points under :he Review and Rank~n~ System will receive f~din& at L.as: ~o the ~oun: :heir par:ictpa:!on has brou~h~ :o the Consortia, $14~,720 $5A,890 respec:ive!y. FO~ OF ~SIST~CE HO~ fun~ will be allots:ed tn :he fo~ of loans (deferred, low-inceres:, or non-ln:eres: bearing). Loans will be sa:isfied at the point of sale or if the project does hOC meet :he :e~s and conditions of :he con:rac:ual a~reemen:. HO~ funds wtlI require full :epa~enc whenever feasible. In projects involvin& acquisition, new cons:~c:ion, and/or substantial r.habili:a:ion :he HO~ loan a~reemen: w~ll contain a profi: shartn~ provision. DE~LI~ POR PROPOS~B All requests for He~ep~n Housin~ Consor~i~ HOME funds ~s: be submitted :he Hennepin County Office of P%annin& and Development by the close of b~iness June 1, 1993. ~e deadline ~or all qualified CHDO requests may be ex:ended unctl all funds have been co~i::ed. Mail reques:s to: Hennep~n County Office of Plannin~ and Development, 822 South ~trd S:reec, Suite 310, Mi~mapolis, ~ ~Q~ST FOR PROPOSAL To obtain a HOME pro&r~ reques: for proposai 9acke: con:ac: :he He~epin County Office of Plannin& and Developmen:, 822 South ~ird S::eet. Suite 310, Minneapolis, ~ 55a15, telephone 3~8-6&18. Specific questions should be referred ~o Barbara Hayden at Ne~epin Co~:y rese~es :he right :o accep~ or reject ali fundin~ ~d rescind :he request for proposals. Ail infor~clon submitted :hrou~h chis solicitation becomes ~he proRer~7 of He. eRin County. '93 IlZe ~j~c~ ~c~Ly im~, ~j~c~ for laity s~ze. PQiflT c~tMr~ in ~his · s~tflc ~roj~cs ~LIc~c has pro~, c~Lec~ a~or 0-10 ~. txT~C ~ t~Ch of e~rf~e tho a~LT~CC&} hal t~ ~rki~ k~th ~or · ALL Wrs ~nvolv~ in the Gtfcact~ wiLL · ~iti~ to mintain t~et of s~Tive services ~er the kif. of the 0-10 .----. 3. The extent to Mqich the alkaLi(ant(s) has c~momCrateci its cap4cit¥ to c~npLeCe the activity within the d~slgr~ted tim peri(M. · Fine,|iL capacity of the eq~Licent to u~derteke the KtIYJty. · The projKc sch~Le ~s reas~te. · ~ticaflt staff [e~ets ~ e~rtise co J~t~t the ~civity. I. Project FeasibiLity 0-10 1. The extent to khlch the aiSle(antes) has d~crec~ that the ft~iatty vi~te. · Pro~o~ or lamaist s~tes are c~fscent with t~C~ projecC~ rev~, o~raCim costa ~ deprKintim aiLing. 0-I0 __ 2. The extent to uhich the al~ttcant(s) has con~oi~ed other public lad/or private funds to minimize the ~C of r~sC~ f~. · Percentage of H~E su~i~ ~r ~it cost Is c~r~ to the ~Cire c~C. · The H~E r~st is the mini~ ~GeSSary tO proYi~ lffor~bte affordabLe h~using. c~itMnc ne~ to c~[ete the icClviCy. ~S~ ~ ~x~rJ~e Of 8~Ltcantcs) [n obtaini~ thee .... _ I I I " [ [~[ . _ _ s _. I for ~he %lrpt 6 %o I0 ~m~ 2 11%o 15 ~ 5 ~lnts 16 to ~ ~orm 8 2~ ~ I0 ~rt~ftf~ ~t ~ prov~ or ~wi~ ~ i Limit~ ~iS ~ c~r~ to $~ific~tty ~ the c~ti~ of ~e ~its. · D~trit~ ~ for pP~i~ h~i~. C~ts for a~r~ate s~r~tve servic~ ire Gr~riatl for the tlrgltK * L~ters of ~rt ~t ~ frs m ~rs~ of ~ori~ ~tf~ t arti~imr q~ ~ jue?~L~tJ~. Total ProposaLs mLst score m miniflMn of 15 points in Section A, m mJfl~nJ~ of ZO points in Sectton I, ~ oVerl~ ut ~oro i iifltM of ~ ~fflts to ~ c~i~r~ for ~e N~ln N~i~ C~ortl~ uILL eke ~ remsnbLe effort to acc~te prflrm set ul~ iff the first r~ of f~i~. A lfniu of 1S ~rc~t of the 1~ ~ fM (s16S,~0) ~t ~ set isi~ for h~ to s~r~, or ~ ~ r&~fit c~ity h~st~ ~L~t QPSMiZOT~ (CHOOs). There ~3,~0 ~fl 1~ ~ f~ for t~ ~ ~t the{r MflJciNt1~ has b~t to the c~ort~, SlLZ,~O I~ S3~,B90 r~mtJvety. In or~r to m~te these set aai~s, prGSltS My ~ f~ ~lch are raflk~ tMr th~ c~tl~ pr~mtm. 3/30/93 REYUAJI~.SY$ .!.993 llOt~. I'R~ S~CfLE · Prosrm* Description approved by He.spin County Board Ma=ch 19, 1993 · Prosram Description is subm~ed co RUD ~arch I5, 1993 · NOFA/Reques~ ~or Proposals April 1. 1993 ° RUD approval of Pro,ram Description April I$. 1993 ° Application Submittal Dace June 1. 1993 ° Rennepfn County staff review of applica:tons completed July 1, 1993 ° Selec~ion Commi~ee~' review and ~unding rmc~en~acions submitted co Coun=7 Board July 15, 1993' " Councy Board awarde 1993 HO~ funds Ausus= [5, 1993' *Ten=a=ive daces 3/23/93 M~ETING MINUTES Planners Action Group CO-OP Northwest The meeting was held at Northwest Hennepin Human Services Council on Monday, May 10. The meeting was called =o order at 9:00 a.m. Present: Kirk McDonald (City of New Hope), Barb Hayden (Hennepin County), Donna Datsko (City of Brooklyn Park), Julia Jones (City of Crystal), Patty Wilder (Northwest Hennepin Human Services Council), Klm Aasland (Northwest Hennepin Human Services Council) and Dave Greeman (Northwes~ Hennepin Human Services Council). The group discussed the prospect of expanding the New Hope CHDO which has been preliminarily approved by ~UD to be a five city and Northwest Hennepin Human Services Council CHDO in order to obtain increased access to federal housing funds. A CHDO is a private, nonprofit housing organization organized under state and federal laws which has among its purposes, :he provision of decent housing that is affordable to low-income and moderate income persons. Barb Hayden discussed the use of CHDO funds in suburban Hennepin County. A certain percentage of federal housing funds are designated for use only by qualified CHDOs. Currently 15% of HOME funds allocated ~o suburban Hennepin County are designated for CHDOs. CHDO funds are available to provide housing assistance to families at or below 80% of the median income. None of =he $240,000 in 1992 CHDO HOME funds have been used yet and there are $165,000 for 1993 available as well. Hennepin County anticipates that $240,000 will be~available in 1994. According to federal regulations, at least one-third of a CHDO's governing board must be Iow-income residents or elected representatives of such residents. A CHDO cannot be a public body or controlled by any one public body. It was suggested that Northwest Hennepin Human Services Council appoint the low-income board members since it is not controlled by any individual city but is rather the object of a joint powers agreement. Possible projects for HOME funds discussed at the meeting include rehabbing or new construction for low-income and/or people with disabilities. A strategy for winning support for the five city CHDO from each of the cities is to have a project site in each of the cities. In order to apply for 1992 and 1993 CHDO funds the five city CHDO must be established by June 1. To accomplish this we would have to do several things, including: approval by the five city councils; modification of the New Hope CHDO bylaws; a plan for selecting low and moderate income people to serve on the CHDO board, and; the development of projects for which CHDO funds will be spent and accompanying budgets for the projects. In addition, the CHDO will also have to secure matches for the 1993 funding. The matches can be in several different forms including municipal funding, in-kind support including staff hours for the CHDO, assistance in down payments for housing purchases, and MHFA funding. CDBG funds cannot be used as a match. CHDO project proposals will need to include: a target population for which the CHDO funds will be used; a determination of what the housing needs are of the target population; a plan for providing support services to the families receiving the assistance, and; an estimation of how much funding is needed to complete the projects. The Planners Action Group will hold a work session on Monday, May 18 to plan the CHDO and possible projects. The meeting will be at 9:30 at Northwest Hennepin Human Services Council.