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HomeMy WebLinkAbout1992 05-11 EDAM Special Session1 MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STA 1'1✓ OF MINNESOTA SPECIAL SESSION MAY 11, 1992 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Todd Paulson at 10:37 p.m. ROLL CALL President Todd Paulson, Commissioners Dave Rosene, and Philip Cohen, Celia Scott, and Jerry Pedlar. Also present were City Manager Gerald Splinter, Assistant EDA Coordinator Tom Bublitz, City Attorney Charlie LeFevere, Director of Public Works Sy Knapp, Director of Planning and Inspection Ron Warren, Finance Director Paul Holmlund, and Council Secretary Carla Wirth. APPROVAL OF MINUTES APRIL 13, 1992 SPECIAL SESSION There was a motion by Commissioner Rosene and seconded by Commissioner Cohen to approve the minutes of the April 13, 1992, EDA meeting. Vote: three ayes, two abstain. The motion passed. Commissioners Pedlar and Scott abstained from voting. RESOLUTIONS The City Manager introduced a Resolution Requesting the Hennepin County Housing and Redevelopment Authority to Exercise Certain of its Powers in the City. He explained that the proposed site is just south of the Joslyn property on Twin Lake Avenue and contemplates the construction of a four -unit townhome (group home) to provide services for people afflicted with M.S., M.D., cerebral palsy or head injuries. The EDA Coordinator added the resolution only authorizes the County HRA to explore the financing of this project, and does not actually authorize the project. Another resolution regarding financing will have to be approved by the EDA before the project could be started. 5/11/92 1 Since the purpose is to obtain lower cost financing, Commissioner Cohen questioned the public purpose or benefit. Craig Ruschmeyer, Surety Resource Management, explained financial savings will result in a cheaper living alternative compared to a nursing home, etc. This option also allows the people to remain in the community rather than having to live in another type of facility. It is estimated that 50% of the residents will be in foster care assisted by the County and /or State and 50% will be private pay individuals. Councilmember Cohen asked if the public benefit would be a reduction in overall taxpayer's cost for those on assistance. Mr. Ruschmeyer agreed it will result in a savings of approximately 20 Councilmember Cohen suggested that if approved, staff start thinking about a policy regarding this type of situation because he felt other requests of this type will follow. Councilmember Scott also felt more requests of this type would be received and agreed a policy should be developed. She pointed out that nursing homes are becoming over crowded with people who could use this type of facility. Another advantage is that residents of a group home are sometimes able to learn to live independently over time, but this does not usually happen with nursing home residents. Chair Paulson suggested Mr. Ruschmeyer get in touch with the community as soon as possible to receive their input. Mr. Ruschmeyer agreed. RESOLUTION NO. 92 -15 Commissioner Scott introduced the following resolution and moved its adoption: RESOLUTION REQUESTING THE HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY TO EXERCISE CERTAIN OF ITS PLANNING POWERS IN THE CITY TO DEVELOP A PROJECT The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Rosene, and the motion passed unanimously. The City Manager introduced a Resolution Authorizing Execution of Mortgage Revenue Bond Allotment Agreement for the 1992 Minnesota Housing Finance Agency Minnesota City Participation Program. The Assistant EDA Coordinator explained Brooklyn Center's allocation is $2,187,157. An application deposit of one percent of this amount ($21,871.57) is required to be submitted with the Allotment Agreement. This fee will be refunded to the City thirty days after the mortgage revenue bonds are issued. However, a nonrefundable processing fee of $400 is also required to be submitted with the Allotment Agreement. He felt the money would be available by late -June. 5/11/92 2 1 1 1 1 In response to Councilmember Cohen's questions, the Assistant EDA Coordinator explained the 1991 interest rate was 7.45 Origination fees may be an additional 1% of the principle balance. It was estimated the total may be in the 9% range, including the origination fee. RESOLUTION NO. 92 -16 Commissioner Cohen introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING EXECUTION OF MORTGAGE REVENUE BOND ALLOTMENT AGREEMENT FOR THE 1992 MINNESOTA HOUSING FINANCE AGENCY MINNESOTA CITY PARTICIPATION PROGRAM The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Rosene, and the motion passed unanimously. RESOLUTION NO. 92 -17 Commissioner Scott introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING EXECUTION OF PROGRAM APPLICATION COMMITMENT AGREEMENT FOR THE MINNESOTA HOUSING FINANCE AGENCY'S MINNESOTA CITY PARTICIPATION PROGRAM The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Pedlar, and the motion passed unanimously. Councilmember Cohen commended Tom Bublitz, Assistant EDA Coordinator. President Paulson agreed and added Mr. Bublitz continues to bring forward programs for redevelopment, and it is much appreciated. The EDA Coordinator commented that while it will not solve all the problems, it does provide one more tool. ADJOURNMENT There was a motion by Commissioner Rosene and seconded by Commissioner Pedlar to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 10:57 p.m. Recorded and transcribed by: Carla Wirth Northern Counties Secretarial Services 5/11/92 3 Todd Paulson, President