Loading...
HomeMy WebLinkAbout1983-020 HRARMember Celia Scott introduced the following resolution and moved its adoption: HRA RESOLUTION NO. 83-20 RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER APPROVING AMENDMENT NUMBER 1 TO THE REDEVELOPMENT CONTRACT IN CONNECTION WITH THE BROOKWOOD MANOR HOUSING DEVELOPMENT PROJECT WHEREAS, in furtherance of the objectives of the Minnesota Municipal Housing and Redevelopment Act, Minnesota Statutes, Section 462.411 et. seq., the Authority and the City of Brooklyn Center have established a housing development project pursuant to a housing development plan dated February 28, 1983, which plan is entitled the Brooklyn Center Housing Development Project Plan; and WHEREAS, to implement said housing development project on June 21, 1983, the Authority entered into a Contract for Private Redevelopment By and Between The Housing and Redevelopment Authority in and for the City of Brooklyn Center and the Brutger Companies, Inc. (the "Redevelopment Contract"), setting for the rights and obligations of the Authority and the Brutger Companies, Inc. (the "Redeveloper"), concerning redevelopment and construction of the housing development project; and WHEREAS, the Redevelopment Contract contains certain guarantees on the part of the Redeveloper of the Authority's investment in the project; and WHEREAS, in order to prevent treatment of the general obligation tax increment bonds issued for the project as industrial development bonds under federal law, the Redevelopment Contract must be clarified to limit the total guarantee of the Redeveloper to lesser of twenty-five percent (25%) of the original principal amount of the bonds, or twenty-five percent (25%) of the total interest paid or to be paid on the bonds. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Brooklyn Center. That the Authority hereby approves the form of and authorizes the Executive Director to execute on behalf of the Authority the attached amendment; provided the Executive Director may approve such variations, omissions and insertions as are not materially inconsistent with the form annexed hereto. November 7, 1983 Date Mayor The motion for the adoption of the foregoing resolution was duly seconded by member Bill Hawes , and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. HRA RESOLUTION NO. 83-20 AMENDMENT NUMBER 1 TO CONTRACT FOR PRIVATE DEVELOPMENT' BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR BROOKLYN CENTER AND BRUTGER COMPANIES, INC. THIS AMENDMENT NUMBER 1 (the "Amendment") to the Contract for Private Development ("Agreement") dated June 21, 1983, by and between the Housing and Redevelopment Authority in and for the City of Brooklyn Center (the "Authority") and Brutger Companies, Inc., a Minnesota corporation (the "Developer") is made as of the day of , 1983, by and between the Authority and Developer. In consideration of the mutual promises hereinafter made in this Amendment, the Authority and Developer hereby agree to amend the Agreement as follows: 1. By adding a Section 6.6 which shall provide: Section 6.6 Limitation on Total Guarantee. The Developer covenants and agrees to provide and pay the Development Letter of Credit and Tax Increment Guarantee pursuant to Sections 4.6 and 6.1 of this Agreement, and make any required or elected payment pursuant to Section 5.4 of this Agreement. Provided, however that the _._.aggregate payments made by the Developer to the Authority pursuant to Sections 4.6, 5.4, 6.1 and this Section 6.6 and any insurance proceeds to be paid to the Authority as a result of damage to or destruction of the Minimum Improvements shall not exceed the lesser of twenty-five percent (25%) of the original principal amount of the Bonds, or twenty-five percent (25%) of the total interest paid or to be paid with respect to the Bonds to the Maturity Date. In the event that, due to the exercise of an option of redemption or for any other reason, the amounts- actually paid to the Authority exceed lesser of such amounts, then the Authority shall promptly refund to the Developer that portion of the amounts actually paid to the Authority which exceed said sum. The obligation of the Developer to make the payments as provided in this Section 6.6 of this Agreement shall be absolute and unconditional irrespective of any defense or any rights of setoff, recoupment or counterclaim it might otherwise have against the Authority or any other government body or other person. The Developer shall not fail to make any required payments for any cause or circumstance whatsoever including the failure A HRA RESOLUTION NO. 83-20 or refusal of a bank to honor a demand under a letter of credit, any change in law, or any other event even if beyond the control of the Developer. 2. All other terms and provisions of the Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the Authority has caused this Amendment to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Developer has caused this Amendment 'to be duly executed in its name and behalf as of the date above written. 1 By ~ z LC y - -L~- THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER, MINNESOTA And By Execu i e Director BRUTGER COMPANIES, INC. By 2