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HomeMy WebLinkAbout1994-231 CCR1 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION NO. 94 -23]_ RESOLUTION MAKING CERTAIN FINDINGS RELATIVE TO THE TREATMENT OF UNITY PLACE (FORMERLY "THE PONDS") AS A LEASEHOLD COOPERATIVE WHEREAS, Community Housing Development Corporation, a Minnesota nonprofit corporation "Owner is owner of property consisting of approximately 17.44 acres of land and 11 one- and two -story townhome buildings located at 5300 5448 Ponds Drive North and 7225 7274 Unity Avenue North, Brooklyn Center, Minnesota, legally described as all Lots, Blocks and Outlots contained in The Ponds Plat Six, according to the plat thereof, Hennepin County, Minnesota, hereinafter called Unity Place (formerly "The Ponds and WHEREAS, the tenants' apartment units of Unity Place (formerly "The Ponds are members "Cooperative Members of a Minnesota cooperative association known as "Unity Place Cooperative, a Cooperative Association" "the Cooperative and WHEREAS, the Cooperative desires to qualify Unity Place as a leasehold cooperative pursuant to Minnesota Statutes Section 273.124, Subdivision 6, which requires approval of the Cooperative by the City of Brooklyn Center so that homestead treatment may be claimed by the Cooperative for dwelling units occupied by Cooperative Members; and WHEREAS, the Council of the City of Brooklyn Center has held a public hearing pursuant to Minnesota Statutes Section 273.124, Subdivision 6. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that: 1. The granting of homestead treatment of the Unity Place units will facilitate safe, clean, affordable housing for the Cooperative Members that would otherwise not be available absent the homestead designation. 2. The Owner has presented information satisfactory to the Council showing that the savings garnered from the homestead designation of the units will be used to reduce tenants' rents or provide a level of furnishing or maintenance not possible absent the designation. 3. The Cooperative has a lease for occupancy of Unity Place for a term of at least 20 years which permits the Cooperative, while not in default, to participate materially in the management of Unity Place, including material participation in establishing budgets, setting rent levels and hiring and supervising a management agent. 1 ATTEST: RESOLUTION NO. 94 -231 4. A minimum of forty percent (40%) of the Cooperative Members have incomes at or less than sixty percent (60 of area median gross income as determined by the United States Secretary of Housing and Urban Development under Section 142(d)(2)(B) of the Internal Revenue Code of 1986, as amended through December 31, 1991. For purposes of this finding, "member income" means the income of a member existing at the time the member becomes a member of the Cooperative. 5. The Owner of Unity Place has received public financing from the City of Brooklyn Center, which issued Multifamily Housing Revenue Bonds on or about December 1, 1993, which bonds are exempt from taxes under Section 103 of the Internal Revenue Code of 1986, as amended through December 31, 1991, the proceeds of which were used for the acquisition of Unity Place. The Owner of Unity Place is receiving revenues pursuant to Section 8 of the United States Housing Act of 1937. 6. Until the lease between the Owner and the Cooperative Association has been terminated, the Owner of the Unity Place /The Ponds Leasehold Cooperative is obligated to provide a certified "Annual Report" to the City Assessor and the City Community Development Department within 30 days of the end of the Cooperative Association's fiscal year, said "Annual Report" to include information which will enable the City Assessor and City Community Development Department to reasonably determine that the requirements of Minnesota Statutes, Section 273.124, Subd. 6, paragraphs (b), (d) and (j)(2), as amended from time to time, continue to be satisfied by the Owner. October 24, 1994 Date Deputy Clerk Todd Paulson, Mayor The motion for the adoption of the foregoing resolution was duly seconded by member Dave Rosene and upon vote being taken thereon, the following voted in favor thereof: Todd Paulson, Celia Scott, Dave Rosene, Barb Kalligher, and Kristen Mann; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted.