092892 EDAOFFICIAL FILE COPY
CITY OF NEW HOPE
EDA AGENDA
EDA Regular Meeting #11
Agenda #12
President Edward J. Erfckson
Commissioner W. Peter Enck
Commissioner Gary L'Herault
Commissioner Gerald Otten
Commissioner NarkyWilliamson
September 28, 1992
2.
3.
4.
e
Call to Order
Roll Call
Approval of Minutes of July 27, 1992
Resolution Directing Execution of Subordination Agreement Regarding
EDA Second Mortgage on Property Located at 4021 Oregon Avenue North
Adjournment
Approved EDA Minutes
Meeting #10
CITY OF NEW HOPE
4401XYLON AVENUE NORTH
HENNEPIN COUNTY, MINNESOTA 55428
July 27, 1992
CALL TO ORDER
ROLL CALL
APPROVE HINUTES
82-1 PLAN
(#493)
Item 4
EDA RES. 92-05
Item 4
CITY-OWNED
PROPERTY (#492)
Item 5
New Hope £DA
Page i
President Erickson called the meeting of the Economic
Development Authority to order at 8:11 p.m.
Present: Erickson, Enck, L'Herault, Otten, Williamson
Motion was made by Commissioner L'Herault, seconded by
Commissioner Enck, to approve the EDA minutes of June 22,
1992. All present voted in favor. Motion carried.
President Erickson introduced for discussion Item 4,
Resolution Approving 1992 Amendment to Redevelopment Plan
82-1 and Tax Increment Financing Plan 82-1 and Requesting
Approval of City Council (#493).
Commissioner Enck verbalized his endorsement of the Adult
Day Care project.
Commissioner Enck introduced the following resolution and
moved its adoption: "RESOLUTION APPROVING 1992 ANENDHENT
TO REDEVELOPMENT PLAN 82-1 AND TAX INCREMENT FINANCING
PLAN 82-1 AND REQUESTING APPROVAL OF CITY COUNCIL". The
motion for the adoption of the foregoing resolution was
seconded by Commissioner Williamson, and upon vote being
taken thereof; the following voted in favor thereof;
Erickson, Enck, L'Herault, Otten, Williamson; and the
following voted against the same None; Absent; None;
whereupon the resolution was declared duly passed and
adopted, signed by the president which was attested to by
the executive director.
(At 8:15 p.m. the City Council meeting resumed; at 9:04
p.m. the £DA was called back to order).
Mayor Erickson introduced for discussion Item 5,
Discussion Regarding City-Owned Property at 7305 42nd
Avenue North - All. Star Sports/Valvoline Rapid Oil Change
(#492).
Mr. Donahue reported that city staff has been discussing
the development of the city-owned property at Nevada and
July 27, 1992
New Hope EDA
Page 2
42nd Avenue for a long period of time. The City has
received two proposals for development: one from the
adjacent pr6perty owner, All Star Sports; and one from
Valvoline Rapid Oil. Staff has analyzed the proposals and
determined that All Star Sports proposal will require
substantial city. assistance whereas the Valvoline Rapid
Oil proposal will require no city assistance.
Mr. Donahue informed the EDA that when making its decision
regarding the proposals it should keep in mind the
existing policy which favors non-automotive related use of
the property.
Mr. Donahue stated All Star Sports offered $50,000 for the
property and requested approximately $100,000 of tax
increment financing assistance. They are proposing to
construct a one-story addition to their present building;
however, they do not have a tenant for the expansion and
may not be willing to proceed at this time even if the
City provided funding.
He further stated that Valvoline has offered $75,000 for
the property and is requesting no financial assistance
from the City.
President Erickson inquired whether it would be an
appropriate courtesy to provide a counter proposal to All
Star Sports.
Commissioner L'Herault felt a counter offer is not
necessary as the property has been under discussion for
several months. He noted when Valvoline first approached
the EDA, representatives explained the type of proposed
building and it appeared to be agreeable to the EDA. He
recommended proceeding with the Valvoline proposal.
Commissioner Enck felt the EDA should be in a position to
make a decision tonight and give direction to staff. He
agreed with Commissioner L'Herault that the Valvoline
Rapid Oil proposal is the better proposal. He noted a
Rapid Oil business will be an attractive structure and it
is not the same as a gas station service center.
President Erickson recommended supporting the project
contingent upon approval of plans which outline
landscaping and street access drawings.
Commissioner Enck questioned whether Valvoline Rapid Oil
will be requesting any variances.
Mr. Donahue recalled no variances being requested during
July 27, lg92
HOTION
OTHER BUSINESS
AD~OURNHENT
the initial discussions by Valvoline. He noted a joint
parking area or driveway access with All Star Sports may
becdme an i~sue.
Motion was made by Commissioner Enck, seconded by
Commissioner Williamson, to accept the proposal by
Valvoline Rapid Oil subject to approval of final plans.
All present voted in favor. Motion carried.
Mr. Donahue reported a neighborhood problem at 36th and
Hillsboro between the Professional Building and Highway
169. He stated there are two properties which each have
a fence constructed resulting in a natural walk-way. He
proposed utilizing up to $4,000 of tax increment dollars
to demolish the two fences and construct one fence which
will eliminate the walk-way and juvenile problems.
The EDA directed Mr. Donahue to report back with bids.
Motion was made by Commissioner Enck, seconded by
Commissioner Otten, to adjourn the meeting. All present
voted in favor. The New Hope EDA adjourned at 9:20 p.m.
Respectful ly submitted,
Valerie Leone
City Clerk
New Hope EDA
Page 3
July 27, 1992
COUNCIL
_.REQU .ESr FOR lC?ION
Or~haathag Department Approved for Agenda Agenda Section
E0A
City Manager ,i~ 9-28-92 Item No.
By: Dan Donahue B~/ 4
RESOLUTION DIRECTING EXECUTION OF SUBORDINATION AGREEMENT REGARDING EDA SECOND
MORTGAGE ON PROPERTY LOCATED AT 4021 OREGON AVENUE NORTH
The City sold this city-owned home to Steven and Diane Heinsch in June of 1990.
The property owners are refinancing the property, and as second mortgage holders
it is necessary for the EDA to execute the Subordination Agreement.
Staff recommends approval of the resolution.
MOTION BY /ffJ~/'/~~ SECOND BY ~
To:
Review: Administration: Finance:
RFA-O01 ~
s E P-- 25-- 92 F R I 9 ' 25 C 0 R R I C K & S (] N I) R A L L P . 02
ED~ RESOLUTION 92-
RESOLUTION DIRECTING EXECUTION OF
SUBORDINATION AGREEMENT REGARDING EDA
SECOND MORTGAGE ON PROPERTY LOCATED
AT 4021 OREGON AVENUE NORTH
~_B. EREAS, the Economic Development Authority in and for the
City of New Hope holds a second mortgage with an original principal
amount of $13,000,00 on property located at 4021 Oregon Avenue
North, legally described as Lot 14, Block 7, Rockford Park, and
WHEREAS, the owners of said property wish to participate in
the FHA Streamline Refinance Program to obtain a more favorable
first mortgage on the property, and
~HEREAS, the prospective f~rst mortgage holder, Homeowners
Mortgage Corporation, w~]l not provide said mortgage unless the EDA
will subordinate its mortgage to the new mortgage given to
Homeowners Mortgage corporation under the FHA Stream]~ne Refinance
Program.
NOW~ THEREFORE, BE IT RESOLVED by the Economic Development
Authority tn end for the C~ty of New Hope ss
That the President and Executive Director of the Economic
Development Authority in and for the City of New Hope is
hereby directed and authorized to execute a Subordination
Agreement attached hereto as Exhibit A subordinating the
EDA's mortgage to the f~rst mortgage to be provided by
tlomeowners Mortgage Corpor&tion0
Dated th~s ~ day of
992.
Edw. J. Erickson, President
Attest:
Daniel J. Donahue, Executive Director
SEP--25--92 FR I 9 : 26 CORR I CK & SONBR~L P - 05
CoP. PJC~[ &
P/IRTNEf;C~H~P' OF F~OFE3,~ONAI, C~TIM4~
~.~ln1~r~ ~.~ecutJve Office Plaz~
8525 P~lt~brook
Suite #203
E)~ook]~ Park, Mlnncaot~ $5443
T;L;PHONE
r~ (61~ 4~7
~vV~ O, OE~eY
September 24, 1992
Mr. Kirk McDonald
Management Assistant
City of New Hope
4401Xylon Avenue North
New Hope, MN 5542a
RE:
Property: 4021 Oregon Avenue North
Owners: Graven and Dtsne Helnsch
Subject: Subordination Agreement
Dear Kirk:
Please find enclosed correspondence dated September 22nd, 1992
regarding a requested Subordination Agreement for the referenced
property.
As ! understand it, the Economic Development Authority has a second
mortgage on the referenced property. The first mortgage is held by
Preferred Mortgage Corporation as indicated on Schedule B,
paragraph 6 of the T~tle Commitment attached.
The property owners are now refinancing the property through the
FHA Streamline Refinance Program. Th~s is a program which allows
property owners to reduce the interest, rate or the term of their
mortgage or both with no closlng costs. These people are taking
advantage of this program.
The requested Subordination Agreement will make our mortgage junior
to the new mortgage given to Homeowners Mortgage Corporation as
part of this Streamline Refinance Progr&m.
Z recommend that we execute the Subordination Agreement since it
wlll simply maintain the status quo and a~low the homeowner to
receive a more favorable first mortgage under the Streamline
Refinance Program.
SEP--25--92 FR I 9 : 26 CORR I CK & SONDRALL P . 04
Kirk McDonald
September 25,
Page 2
!992
Contact me if you
Very truly yours,
Steven A. Sondrall
elf2
Enclosure
have
any quest ions,
SEP--25--92 FR I
:27 CORRI
CK ~ SONDRALL
SEP
P. 05
09/22/92
Re; ITEVEN C, flEIN$Cfl
Please find enclos~ a request for a Subordination Agreement on the m~ve referenced client.
Our client ls refi~nc]ng their first moCgage wEh US under the FHA Streamline Refinance Program.
This program ~ for rote a~ ~yment reduction only. No closing costs, discount points, or equEy
u~ge Is allowed.
Their currant moP,ge Is at a rate of % wEh a current P&I of $ ~17. ~ .
The new mo~gage wlll be at mte of ~,~ %wlthaP&lof ~' ~.G~ ~
Please h~ve the proper official sign and notorlze this agr~ment at your eaHlest convenience and
~ E bac~ to (612) 8~-~31 with the oHgl~l to f~lowin the mall to:
HOMEO~ERS MORTGAGE CORPORATION
7~1 OHMS ~NE SUITE ~1
EDINA. MN 55439
Thanks m say, ce tor your prompt a~entlon In this maEer.
EP ~5--92 P 06
F R I ,,,,(9 : 27 C 0 R R I C K & S 0 NeD R A L L
SUBORDINATION AGRED~iWT
t~{h-RF..AS,. The_ Econom. i¢ Deve~_o~ment. Autho=itv ., possess a valid
and enforceable lien against the following ~escrabed real property located in the
Co~cy of : .Nennepin . .~, State ~o~. M~nne_s_ota .. , bo wi~:
Lot 14, Block 7, Rockford Park
As evidenced by a MOrtgage ,dated._J~,19..90_
and filed of recold in the Office of the __'Registrar of Titles., .......
......... H~eDnepin.~County, as Document No. 2108753 ; :and
W]~RFAS,__Steven C.. Heinsch and Diane M. Mein~_oh, Husband & Wife , o~ler(s)
of the aboVe described real prope~ty~ has~ve applied for"a loan-ir°m
MOMEO~NERS MORTGAGE CORPORATION ......
~[EREAS, NOME0t~RS MORTGAGE CORPORATION , has indicated '
tha~ l~ is' unwilling to accept a mortgage upon ~he above described real property
security for said loan unless The Economic De..velo_Dment_Author. itv
, shall subordinate its lien tO the lien ~o-be cre~ted by said
mortgage on said' ~operty, Said mortgage recorded ,19
as Document No. , ....... , Certifica~i'on No. - .. "'
NOW 1]~REFORE, in consideration of the premises and as an inducement Lo
IIO~OWN~S MORTGAGE CORPORATION ' to accep~ said mortgage,
T~e Economic Development Authority hereby agrees to subordina-t-e its ....
~-_ Mort~af~e . agains~ the above described' ~al property to the first ~- '
lien of "I{-0~OWNERS ~DRTGAGE CORPORATION - - -
against said Property,
said mortgage ~o have the same validity, fozce and e£fec~ as if executed, delivered,
and recorded prior to the date of execution of said. Mort~a~.e... .
IN TESTIMONY I'$~P~EOF, The Economic De_v_eloom~nt __Au~_hor~ +v has caused
these presents to be eXeCUted in i~s corporate-name by l:s_---- ffPresiden/, and
its .... .~hereon~o affixed this. . _--day of'~' . ...... ~19
, The _Economic Dev~lonm~n~ Au~.hnr~ ty
BY: .....
I ts Presiden~
BY:
Its
STATE OF .
COUNIY OF
This foregoing instrument was acknowledged before me this day of
19____, by and by
of a . .. Corporation, on behalf of the corpora~i'~'n.
0£ a~
My Con~is~ion e.~pires:
Corpora~On~ On be~ua~f o'£ the corporation.
NOTARy
Drafted ~y:
I{0~ '~O~-~RS ~I0~TGAGE CORPORATION.
7301 O~Ms XANS, SUITS 601.
EDI~, .MM 55439
SEP--25--92 ~R I 9 : 28 COR~ I C~ ~ $ONDRALL P . 07
Walsh Title & Real Estate Services, Inc.
4820 West 77 Street, Suite 220, Edina, MN 55435; Phone: (612) 835-3320 FAX: (612) 835-7731
September 19, 1992
Mark Ulmen
IIomeowners Mortgage Corporation
7301 Ohms Lane//601
Edina, ~N 55439
Welsh File No,: 01009632
Property Address: 4021 Oregon Avenue North
New Hope, MN 55427
Buyers: Steven C. Heinsch
Diane M. Heinsch
Enclosed please laid the following with regard to the file
referencexl above:
Commitment for Title insurance: # 01009632
Plat Drawing
Should you have questions or concerns please feel free to contact us at
835-3320.
rely,
WTl20a (9/92} h~l~
Title Insuran¢o · Closing Services, Abstract £Xtentions ~
SEP--25--92 ER I 9 : 29
Land Title Insurance Company
& SONDRALL
P. 08
File No,: 01009632
Your File No.:
1. Effective Date: 3rd day of September,1992 a~ 7:00 a.m.
2, Policy or Policies to be issued:
(a) ( ) ALTA Owner Policy Form B - 1970 (Rev. 10-17-84)
Proposed Insured:
COMMITM'E FOR TITLE L SURANCE
Sch~ule A
Commitment No.: 01009632
Alllount
(b)(X) ALTA Loan Policy - 1970 (Roy. 10-17-70 and I0-17-84)
$ 61,410.00
Proposed Insured: ( )Cony (X)FHA ( )VA
Homeowners Mortgag.e Corporation, an.d/or the Secretary of Housing and Urban
Development of Washington, D. C., their representative successors and assigns,
as their interest may appear.
3. Tho estate or intereat in the land d~¢ribcd or referred to in thc CommRmea{ and covered herein is fcc simpla
and is at th~ affe~tive dat~ hereof v~ste, d in'.
Steven C. Heinsch and Diane M. Heln$ch, as joint tenants.
4. Tho land referred to ia tiffs Commitrncnt i~ situated in tho County of Hennepin
Minnesota , and is d~s~ribed as follows:
State of
Lot 14, Block 7, Rockford Park.
The subject property is Registered Land, as evidenced by Certificate of Title
No. 749334.
The owners duplicate certificate of title was taken out by, or sent to, the
owner on September 11, 1990 and must be brought to closing.
TM address of the property: 4021 Oregon Avenue North, New Hope, MN 55427
Count~rslgn ...~~
Authorized ~fieor or Agent Il
Valid Only if SchMule B and Cover ar~ Attaah~
E P-- x_ 5 -- 9 2 F R I 9 : ~' 9
COMMONWEALTH
Land Title Insurance Company
CORRIOK
& SONDRALL
File No.: 01009632 Co~m~italent No.: 01009632
Schedule B - Section 2
Schedule B of the policy or policies to he issued will contain e×¢eptions to the following matters unless
the same are disposed of to the satisfaction of the Company:
1, Defects, liens, eneumbr~¢es, adverse claims or other matters, if any, created, first app~rmg in the
public records or attaching subsequent to tho effective date hereof but prior to the date of the proposed
Insured acquires for valu~ of r~ord the estate or interest or mortgage ther~n oover~ by
Commitment.
2, (A) Interest of spouse of mortgagor, if any. (B) Any lien or right for services, labor, or
material heretofore or hereafter furnished imposed by law and not shown in the public records. (C')
Survey: Any encroachments, measurements, party walls, or other facts which a con'eat survey of the
premises would show. (D) F. asemonts, or claims of easements, not shown by thc public records.
Rights or claims of parties in poss~ssloa not shown by the public records.
3. All taxes and assessments due and payable ia the year 1992 and all subsequent years.
NOTE: This commlt~nent does not cover utility, sewer and water bills against property not shown on tax or
assessment records.
4. Real Estate taxes due and p. ayable in 1992 in the amount of $768.76 are half
paid. The base tax amount ~s $768.76.
Property Identification Number: 17-118-21..24-0102.
Property is homestead for taxes due and payable in 1992.
5. Levied or pending assessments, if any.
6. Mortgage to secure $56,550.00 dated June 29, 1990 filed July 10, 1990 as
Document No. 2108751 executed by Steven C. Heinsch and Diane M. Heinsch, husband
and wife, to Preferred Mortgage Corporation. Assigned to Sears Mortgage
Corporation by Document No. 2108752.
(~DMortgage to secure $13,000.00 dated June 29, 19.90 filed Jul?. 10, 1990 as
ocument No. 2108753 executed by Steven C. Hemsch and Drone M. Heinsch, husband
and wife, to The Economic Development Authority in and for the City of New
Hope.
8. Easements for utilities and drainage over the West 5 feet, as shown on the
recorded plat.
Please call Walsh Title & Real Estate Services, Lqc. at 855-3320 to sch~ule closing.
NOTE: AN OWNER'5 POLICY ISSUT:D IN CONN'.eTlON WITH THIS COMMITMENT WILL CONTAIN THI~
FOLLOW2[NO PRE-PRINTED EXCI~PTION$:
1. Rights or claims other than Insured in actual possession of any or all the property.
2. Unrecorded easements, discrepancies or conflicts in boundary lines, shortage in ar~ and encroachments
which an accurate and complete survey would disclose.
3. Unfiled mechanics' or materialmen's liens,