HomeMy WebLinkAbout2010-002 EDAR Commissioner Tim Roche introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO. 2010 -02
EDA RESOLUTION AGREEING TO UNDERTAKE THE DUTIES OF
THE CITY UNDER THE NEIGHBORHOOD STABILIZATION
PROGRAM AND AUTHORIZING THE EDA STAFF TO ACQUIRE
CERTAIN FORECLOSED HOMES WITHIN THE CITY AND TO
EXECUTE ALL INSTRUMENTS AND CONTRACTS RELATED
THERETO
WHEREAS, the City of Brooklyn Center ("City ") authorized the Economic
Development Authority of the City of Brooklyn Center ( "EDA ") to act on the City's behalf
to acquire, rehabilitate, and resell certain qualifying foreclosed properties pursuant to EDA's
Foreclosure Recovery Program and the terms of City Resolution 2010- 32 ; and
WHEREAS, the EDA agrees to undertake the duties necessary to act on the
City's behalf pursuant to the terms of the Foreclosure Recovery Program and City Resolution
2010- 32 ; and
WHEREAS, in order to expand the effectiveness of the Program, the EDA will
enter into a First Look Program Acquisition Agreement with the Twin Cities Community Land
Bank, a Minnesota nonprofit limited liability company ( "TCCLB "), which allows TCCLB to
purchase qualifying foreclosed properties, through the National Community Stabilization Trust
("NCST ") and participating sellers under a program called "First Look ", prior to such qualifying
foreclosed properties being placed on the open market using standardized transaction formats
and pricing models to facilitate a significant purchase price adjustment for the benefit of TCCLB
( "First Look Program "); and
WHEREAS, the First Look Program requires that TCCLB provide EDA with a
list of foreclosed properties as such properties are offered through the NSCT. Thereafter, EDA
conducts its due diligence and must inform TCCLB within 24 hours if EDA or certain qualifying
NSP I Developers would like to acquire certain qualifying foreclosed properties. When EDA or
certain qualifying NSP I Developers wish to acquire certain qualifying foreclosed property, then
TCCLB enters into a purchase agreement with the foreclosing lender with the understanding that
EDA or certain qualifying NSP I Developers will immediately thereafter acquire said property
from TCCLB; and
WHEREAS, in order for EDA to realize the benefits of its participation in the
NCST and First Look Program, its Executive Director requires certain discrete time- limited
authority, after conducting due diligence, to enter into purchase agreements or consent to certain
qualifying NSP I Developers entering into purchase agreements pursuant to the First Look
Program and City Resolution 2010- 32 ; and
EDA RESOLUTION NO. 2010 -02
WHEREAS, it is the desire of EDA to establish certain standards and conditions
for such acquisitions and to authorize its Executive Director to proceed therewith without
specific EDA approval of each transaction.
NOW, THEREFORE, BE IT RESOLVED by the Commissioners of the
Economic Development Authority of Brooklyn Center:
1. That the recitals set forth in this Resolution are incorporated into and made a
part of this Resolution.
2. That the Executive Director, with the assistance of EDA's legal counsel, is
hereby authorized and directed to take any and all additional steps and
actions necessary or convenient in order to accomplish the intent of this
Resolution, including but not limited to entering into appropriate agreements,
including but not limited to the following:
(a) Access and Indemnification Agreement by and between TCCLB and
EDA;
(b) First Look Program Acquisition Agreement by and between TCCLB
and EDA;
(c) NSP I Developer Agreements; and
delivering all such documents as may be necessary or required by the First Look Program and the
NCST to effectuate the transactions contemplated by the First Look Program Acquisition
Agreement, this Resolution, and City Resolution 2010 - 32 , on the conditions that:
(a) Prior to the acquisition of each qualifying property, staff conducts
appropriate due diligence to protect EDA's interests; and
(b) That the Executive Director shall report the acquisition of any property
pursuant to this Resolution at the next regular EDA meeting; and
(c) The properties acquired under the First Look Program are eligible for
the use of Neighborhood Stabilization Program funding as set forth in
the First Look Program, First Look Program Acquisition Agreement,
this Resolution, and City Resolution 2010- 32.
3. That the authority granted hereby shall expire December 31, 2010
EDA RESOLUTION NO. 2010 -02
' !-
February 8, 2010
Date u President
The motion for the adoption of the foregoing resolution was duly seconded by commissioner
Dan Ryan
and upon vote being taken thereon, the following voted in favor thereof:
Tim Willson, Tim Roche, Dan Ryan, and Mark Yelich;
and the following voted against the same: none;
whereupon said resolution was declared duly passed and adopted.
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