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HomeMy WebLinkAbout1992-277 CCR1 1 Member Dave Rosene resolution and moved its adoption: RESOLUTION NO. 92 -277 introduced the following RESOLUTION EXPRESSING SUPPORT FOR REFINANCING PROPOSAL FROM THE OWNER OF NORTH LYN APARTMENTS TO THE FEDERAL NATIONAL MORTGAGE ASSOCIATION WHEREAS, the City of Brooklyn Center is extremely concerned about the preservation of high quality, well maintained housing within the City; and WHEREAS, the North Lyn Apartments, located at 6511 Humboldt Avenue North, have been and continue to be a high quality, well maintained apartment complex in the City; and WHEREAS, the developer of the North Lyn Apartments, Norman Chazin, has a long record in the City of developing high quality housing and maintaining it in a first class condition; and WHEREAS, the area surrounding the North Lyn Apartments has experienced rapid, detrimental changes over recent years in tenant population, causing values to decline, preventing rent increases and increasing operating costs, all of which have been made quality of management critical for property in this area; and WHEREAS, in the vicinity of the North Lyn Apartments, a number of properties have already been abandoned, boarded up or are in receivership, further increasing the importance of continued stable, strong management of the North Lyn Apartments; and WHEREAS, the mortgage on the North Lyn Apartments is currently in default because rents in the development are not increasing and the mortgage is at an interest rate of 11 7/8 and WHEREAS, the City believes that it is in the best interest of housing preservation and community development in Brooklyn Center for the Federal National Mortgage Association "Fannie Mae to work cooperatively with the current property owners in a reasonable restructuring of the mortgage on the North Lyn Apartments, rather than proceeding with foreclosure; and WHEREAS, the property owners are committed to further investment in the property in the event of a reasonable mortgage restructuring. NOW, THEREFORE, BE IT RESOLVED: 1. The City of Brooklyn Center commends the current owners of the North Lyn Apartments for their high quality management and their continued commitment to property maintenance. 1 1 1 Resolution No. 92 -277 2. The City urges Fannie Mae to negotiate in good faith in a reasonable restructuring of the mortgage debt on the North Lyn Apartments with the current owners, rather than proceeding with foreclosure and sale, because such continued stable operation is in the best interest of multi- family housing, the tenants, and community development, and will maximize the long term value of the property. 3. The City Manager shall communicate this resolution to Fannie Mae and urge them to engage in suitable loan negotiations with the owners of the North Lyn Apartments. December 14, 1992 Date Todd Paulson, Mayor ATTEST: 1 .r l 1v 4 Deputy Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Philip Cohen and upon vote being taken thereon, the following voted in favor thereof: Todd Paulson, Celia Scott, Jerry Pedlar, Dave Rosene, and Philip Cohen; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted.