HomeMy WebLinkAbout1996 02-12 EDAP Regular Session EDA AGENDA
CITY OF BROOKLYN CENTER
February 12, 1996
1. Call to Order
2. Roll Call
3. Approval of Agenda and Consent Agenda
-The following items are considered to be routine by the Economic Development
Authority and will be enacted by one motion. There will be no separate discussion of
these items unless a Commissioner so requests, in which event the item will be removed
from the consent agenda and considered at the end of Commission Consideration Items.
a. Approval of Minutes
- Commissioners not present at meetings will be recorded as abstaining from the vote
on the minutes.
1. January 22, 1996 - Regular Session
b. Resolution Designating n an Additional Depository of EDA g g P ry Funds
n
C. Resolution Amending the 1995 EDA Budget for the Purchase of the Atkins Property
d. Resolution Authorizing Submittal of a Request for Proposal Under the 1996
Minnesota City Participation Program
4. Commission Consideration Items
a. Resolution Approving a Supplemental Development Agreement by and Among the
City of Brooklyn Center, the Housing and Redevelopment Authority in and for the
City of Brooklyn Center, the Economic Development Authority in and for the City of
Brooklyn Center, and the Presbyterian Homes of Minnesota, Inc.
• Requested Commission Action:
-Adopt resolution.
b. Resolution Approving One (1) Brooklyn Center Economic Development Authority
Deferred Loan (File No. H -136 [8062])
• Requested Commission Action:
-Adopt resolution.
C. Resolution Approving One (1) Brooklyn Center Economic Development Authority
Deferred Loan (File No. H -137 [8063])
• Requested Commission Action:
-Adopt resolution.
5. Adjournment
MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT
AUTHORITY OF THE CITY OF BROOKLYN
CENTER IN THE COUNTY OF HENNEPIN AND THE STATE
OF MINNESOTA
REGULAR SESSION
JANUARY 22, 1996
CITY HALL
CALL TO ORDER
The Brooklyn Center Economic Development Authority (EDA) met in regular session and was
called to order by President Myrna Kragness at 8:13 p.m.
ROLL CALL
President Myrna Kragness, Commissioners Kathleen Carmody, Debra Hilstrom, and Kristen Mann.
Also present were Executive Director Michael McCauley, Community Development Specialist Tom
Bublitz, City Engineer Scott Brink, Assistant City Manager Nancy Gohman, City Attorney Charlie
LeFevere, and Council Secretary Connie Beckman.
APPROVAL OF AGENDA AND CONSENT AGENDA
A motion by Commissioner Mann and seconded by Commissioner Carmody to approve the January
22, 1996, agenda and consent agenda as printed was passed unanimously.
APPROVAL OF MINUTES
A motion by Commissioner Mann and seconded by Commissioner Carmody to approve minutes of
the January 8, 1996 - Regular Session as written passed unanimously.
COMMISSION CONSIDERATION ITEMS
RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO WRITE OFF
UNCOLLECTIBLE ACCOUNTS RECEIVABLE
Commissioner Carmody questioned the necessity of future items such as the one at hand being
brought before the EDA for write off given its small dollar amount. The Executive Director
responded that a request has been given to the EDA secretary to draft a policy which would assist
in avoiding future small dollar amount resolutions being presented to the EDA for write off.
RESOLUTION NO. 96-03
Commissioner Debra Hilstrom introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO WRITE OFF
UNCOLLECTIBLE ACCOUNTS RECEIVABLE
01/22/96 _
22 96 - 1
The motion for the adoption of the foregoing resolution was duly seconded by Commissioner
Kathleen Carmody and passed unanimously.
RESOLUTION ACCEPTING -BIDS AND AWARDING CONTRACT FOR ASBESTOS
ABATEMENT AT THE EDA -OWNED PROPERTY AT 6550 WEST RIVER ROAD (Premier
Mechanical Building)
Commissioner Mann questioned going with the May asbestos removal date and whether it would
save $1,000. The Community Development Specialist responded that by doing the February
abatement, demolition follow up could be completed a little sooner. Currently, there appears to be
no problem with the structure as it is with respect to vandalism, etc. He added that approval of the
resolution at hand allows more flexibility with demolition given busy scheduling of the vendors to
work on the project. Demolition bids would not be presented to the EDA until frost is out of the
ground.
Commissioner Hilstrom questioned whether waiting would yield a boarded -up building which could
produce similar past historical scenarios. The Community Development Specialist indicated the
demolition could proceed sooner with a February asbestos abatement date.
Commissioner Mann referred to EDA funds and their accompanying value. Therefore, she would
like to wait until May to save the $1,000.
Commissioner Carmody stated it was her impression demolition costs might be higher if the EDA
waited until May. The Community Development Specialist referred to the asbestos abatement bids
ranging from $12,850- 35,950 stating that the demolition bids will also depend on how busy a
particular vendor is.
President Kragness inquired when bids would be requested for demolition of the project if asbestos
abatement was completed in May. The Executive Director responded most likely in July in that the
City would not want another contractor on board until confirmation of asbestos abatement was
complete. He added if more bids can be obtained on a construction project, more opportunities are
created for choice with respect to a vendor. President Kragness agreed.
RESOLUTION NO. 96-04
Member Kathleen Carmody introduced the following resolution and moved its adoption based on
a work performance date completion of February 1, 1996:
RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR ASBESTOS
ABATEMENT AT THE EDA -OWNED PROPERTY AT 6550 WEST RIVER ROAD (PREMIER
MECHANICAL BUILDING)
The motion for the adoption of the foregoing resolution was duly seconded by member
Commissioner Debra Hilstrom and passed as follows: (yes) President Kragness, Commissioners
Carmody and Hilstrom; (no) Commissioner Mann.
01/22/96 -2-
ADJOURNMENT
A motion by Commissioner Carmody and seconded by Commissioner Mann to adjourn the meeting
at 8:21 p.m. passed unanimously.
President
Recorded and transcribed by:
Connie Beckman
TimeSaver Off Site Secretarial
01/22/96 -3-
3b
MEMORANDUM
TO: Michael J. McCauley, City Manager
FROM: Charlie Hansen, Finance Director C }t
DATE: February 8, 1996
SUBJECT: Resolution Designating an Additional Depository of
EDA Funds
The attached resolution authorizes the use of a different set of companies as designated
depositories so that we may ay have. them process credit card receipts at the Heritage Center. First
National Bank of Omaha, who has processed our receipts up to now, charges fees of 2.25 % to
3.04%, depending on the transaction. We are recommending that we switch to Transglobal
Systems, Inc. and Old Kent Bank & Trust
Company. This firm is recommended b the
P Y Y
Professional Association of Innkeepers, International, of which the Inn on the Farm is a member.
Transglobal is able to charge a lower 1.7 % fee because they gear their operation specifically
toward the needs of bed & breakfasts.
Commissioner introduced the following resolution and moved its adoption:
EDA RESOLUTION NO.
RESOLUTION D SIQNATING AN ADDITIONAL DEPOSITORY OF EDA FUNDS
WHEREAS, Section 7.01 of the City Charter provides the Economic Development
Authority Commission with authority over EDA funds, including the safekeeping and
disbursement of public moneys; and
WHEREAS, the EDA will receive lower rates on the processing of credit card
transactions at the Earle Brown heritage Center by changing the provider of these services.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in
and for the City of Brooklyn Center, Minnesota, that the list of authorized depositories
established in EDA Resolution 96 -02 is amended to include Transglobal Systems, Inc. and Old
Kent Bank & Trust Company.
Date President
The motion for the adoption of the foregoing resolution was duly seconded by Commissioner
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
3�
MEMORANDUM
TO: Michael J. McCauley, City Manager
FROM: Charlie Hansen, Finance Director C H
DATE: February 8, 1996
SUBJECT: Resolution Amending the 1995 EDA Fund Budget for
the Purchase of the Atkins Property
The attached resolution amends the 1995 EDA budget to provide an appropriation for the purchase
of the Atkins property. The City Council authorized this purchase in EDA Resolution 95 -08 and
it was competed in August 1995. The direct purchase price was $500,000 with some other related
acquisition costs raising the total cost to $554,295.
The EDA sold $4,560,000 of tax increment financing bonds on November 1, 1995. The purchase
of the Atkins property had been identified in advance as one of the uses of the bond proceeds.
The remainder of the bonds proceeds will be expended in 1996.
The attached resolution amends the 1995 EDA budget to provide an appropriation for the purchase
of property and recognize the equal amount of estimated revenue.
its adoption: Member introduced the following resolution and moved
EDA RESOLUTION NO.
RESOLUTION AMENDING THE 1995 EDA FUND BUDGET FOR THE
PURCHASE OF THE ATKINS PROPERTY
WHEREAS, Section 7.08 of the City Charter provides the City Council with the
authority to increase a budget appropriation if the actual receipts exceed the estimates, but not to
exceed the actual receipts; and
WHEREAS, the EDA purchased the property at 6550 West River Road (Atkins
Property) in August 1995 at a cost of $554,295; and
WHEREAS, the EDA passed Resolution 95 -22 declaring its intent to reimburse
itself for the purchase of this property from the proceeds of a bond issue; and
WHEREAS, Tax increment bonds of $4,560,000 were sold on November 1, 1995.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of
Brooklyn Center that the 1995 EDA Fund Budget be amended as follows:
1. Increase Estimated Revenues for sale of bonds by $554,300.00
2. Increase Appropriations for sale of bonds by $554,300.00
Date President
The motion for the adoption of the foregoing resolution was duly seconded by member
and upon vote being taken thereon, the following voted in favor
thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
3d
MEMORANDUM
Date: February 6, 1996
To: Michael J. McCauley, City Manager
From: Tom Bublitz, Community Development Specialist - J
Subject: Resolution Authorizing Submittal of a Request for Proposal Under the
1996 Minnesota City Participation Program
The Minnesota City Participation Program (MCPP) is a mortgage program offered through the
Minnesota Housing Finance Agency (MHFA) for first -time home buyers. Through the
MCPP, the MHFA sells bonds on behalf of cities participating in the program to obtain a pool
of money for mortgage funds. The interest rates on these mortgages are typically one
percentage point below market mortgage interest rates. The only direct cost to the City for
this program is a processing fee charged by the Minnesota Department of Finance in the
amount of $20 for each $100,000 of mortgage allotment. A budget item for this fee has been
included in the 1996 EDA budget. Additional indirect costs would consist of staff time spent
on promoting and responding to questions about the program from potential borrowers.
• A
summary of the MCPP follows:
• Since 1992, over 100 home mortgages have been closed in Brooklyn Center under
the MCPP. In the 1995 program, the City of Brooklyn Center was allocated
$589,984 in mortgage funds and actually used $750,484 due to a feature in the
program that allows participants to access unused mortgage funds from other
program participants. The 1995 mortgage interest rates under the MCPP were as
low as 6.5 %. A 1995 MCPP funds use report is included with this memorandum.
• Between $38 -58 million dollars in bond funds will be available statewide in the
1996 MCPP. The likely amount available to the MCPP is estimated at
$45,000,000. Mortgage pool allocations to the participating cities will be done on a
per capita basis. The total amount of mortgage funds available to each participating
city will depend on the number of cities participating and their respective
populations. With the Livable Communities Act now on line, there may be an
increase in the number of cities in the 1996 program over the 44 participating
jurisdictions in the 1995 program.
• Participating cities will have exclusive use of their set aside of mortgage funds for
six months. The program will run for another two months beyond the six month
• period to allow participants to access any mortgage funds that were unused by the
participating cities during the first six months of the set aside. In past years,
Brooklyn Center has been able to access the mortgage pool at the end of the
Memorandum to Michael J. McCauley
February 6, 1996
Page 2
program and has always exceeded its initial allocation of mortgage funds.
■ In order to access the MCPP funds, cities must submit a Request for Proposal
(RFP). A copy of the RFP recommended by staff is attached to this memorandum.
The main features of the proposed 1996 program are as follows:
1. Participating cities in the MCPP must meet a usage test of their mortgage fund
set asides. The usage test requires that a city must use 50% of their allocation
or they will be ineligible for the following two years of the MCPP. The
Brooklyn Center RFP requests the maximum allowable mortgage funds under
the 1996 MCPP. With the number of cities likely to participate in 1996, this
amount may not equal what the Brooklyn Center EDA received last year,
which was $589,984.
2. Properties that qualify for MCPP mortgages include single- family homes,
townhomes, condominiums and duplexes.
• 3. The maximum borrower income limit for the program is $40,800 in gross
household income. This is adjusted by $1,000 for each household resident.
For example, in a three person household, the household income can total
$43,800 and still remain eligible for the MCPP. A household is considered as
a first -time home buyer if they have not owned a house within the last three
years.
4. The maximum house price limits under the 1996 MCPP are $95,000 in the
Twin Cities metropolitan area.
5. In addition to the below market rate mortgage funds, eligible borrowers at
$28,000 adjusted gross income or less will be eligible to receive down payment
and closing cost assistance in the form of an interest -free second mortgage.
Borrowers at $26,000 adjusted gross income or less will be able to receive
monthly payment assistance at a maximum of $120 per month in the form of an
interest -free second mortgage.
6. The Minnesota Department of Finance will charge a fee to cover the costs
involved with processing housing pool allotment requests. This fee will
amount to $20 for each $100,000 in allotment provided and would be paid
from the EDA budget.
7. To participate in the MCPP, cities must also designate local lenders to
originate mortgage loans under the program. This year, the MHFA is allowing
cities to choose whether or not they would like to open up the lender list to all
Memorandum to Michael J. McCauley
February 6, 1996
Page 3
lenders in the state that have been approved for the MCPP program or to limit
the lenders to those designated by the individual cities. Staff is recommending
that the lender list included in the application be submitted as the designated
lender list. These lenders have worked with the City of Brooklyn Center for a
number of years on this program, and staff believes they can adequately handle
the allocation.
8. An application deposit in the amount of one percent (1 %) of the final mortgage
allocation amount for the City of Brooklyn Center must be included with the
Allotment Agreement executed between the MHFA and the Brooklyn Center
EDA. The one percent application deposit will be refunded in full
approximately one month after the closing of the bond sale for the mortgage
funds.
•
•
1995 Minnesota Cities ram Participation Program
g
Funds Use Report
December 31, 1995
City /County Allocated Committed' Number of
Loans`
City of Alb6rt Lea $379,635 $341,854 8
Anoka HRA $361,459 $434,300 6
Austin HRA $453,308 $522,395 14
Belle Piaine HRA $100,000 $0 0
Bemidji EDA $230,800 $231,890 4
Brainerd HRA $258,776 $288,869 5
Brooklyn Center EDA $589,984 $750,484 10
Brooklyn Park EDA $1,201,866 $1,449,346 19
Buffalo HRA $156,692 $224,282 3
• Columbia Heights $392,847 $454,048 7
Crystal EDA $492,264 $494,358 6
City of Detroit Lakes $150,076 $81,329 2
City of Duluth $1,765,590 $1,737,274 32
Eden Prairie HRA $877,584 .$487,168 7
Elbow Lake EDA $100,000 $55,650 2
Elk River HRA $256,501 $344,981 4
City of Fergus Falls $257,804 $284,284 6
Fridley HRA $584,898 $570,194 7
City of Glencoe $100,000 $127,813 2
City of Hopkins $339,231 $401,355 8
Hutchinson HRA
$247,300 $44,950 1
Lake City EDA $100,000 $194,000 3
Little Falls HRA- $154,687 - $157,859 .4
Mankato HRA $649,969 $753,694 11
• City of Maple Grove $750,000 • $778,144 10
1995 Minnesota Cities Participation Program
Funds Use Report
December 31, 1995
City /County Allocated Committed* Number of
Loans*
City of Maple Lake $100,000 $64,782 j
City of Moorhead $681,047 $683,162 13
Morrison County HRA $250,000 $92,286 2
City of Mounds View $260,761 $240,387 3
New Hope EDA $449,896 $305,437 4
Owatonna HRA $415,675 $727,701 11
City of Perham $100,000 $32,980 1
Plymouth HRA $500,000 $152,542 2
Rice County-HRA $1,057,063 $868,536 14
Richfield HRA $734,829 $879,336 11
Robbinsdale EDA $297,959 $247,314 3
City of Sauk Rapids $182,684 $255,719 3
City of St. Louis Park $904,920 $1,110,608 15
Stevens County HRA $217,670 $206,273 6
Swift County HRA $220,213 $196,846 4
Washington County $3,380,733 $2,915,512 40
Winona HRA $500,000 $276,473 5
Wright County $1,316,666 $1,717,005. 21
City of Zimmerman $100,000 $179,405 2
TOTAL $22,621,387 $22,362,825 342
• Note: "Committed" and "Number of Loans"
represent both closed and in process loans.
•
REQUEST FOR PROPOSAL
• MINNESOTA HOUSING FINANCE AGENCY
1996 MINNESOTA CITY PARTICIPATION PROGRAM (MCPP)
C►R('�ANi7ATICIN
A. NAME AND ADDRESS OF ORGANIZATION
Economic Development Authority
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
B. NAME. AND PHONE NUMBER OF CONTACT PERSON
Contact Name: Tom Bublitz
Phone Number: 569 -3433
C. TYPE, OF ORGANIZATION
Economic Development Authority (EDA)
• H. ORIGINATING TENDER
The Economic Development Authority in and for the City of Brooklyn Center has selected
Option B for participating lenders in the Minnesota City Participation Program (MCPP).
Mortgage loans originated under the 1996 MCPP in the City of Brooklyn Center will be
restricted to the following lenders which are the lenders participating in the 1995 MCPP
for Brooklyn Center.
Firstar Home Mortgage Corporation Marquette Mortgage
5540 Brooklyn Boulevard 5620 Brooklyn Boulevard
Brooklyn Center Brooklyn Center
Investors Mortgage TCF Mortgage Corporation
1730 Plymouth Road South, Suite 301 7984 Brooklyn Boulevard
Minnetonka Brooklyn Park
Inland Mortgage Corporation Norwest Mortgage
5100 Gamble Drive, Suite 470 7378 Kirkwood Court
St. Louis Park Maple Grove
•
-1-
FBS Mortgage Corporation Bell Mortgage Company
200 Coon Rapids Blvd., Suite 200 6235 Earle Brown Drive
Coon Rapids Brooklyn Center
North American Mortgage Company Residential Mortgage Group, Inc.
7760 France Avenue South, Suite 320 6465 Wayzata Blvd., Suite 720
Bloomington St. Louis Park
Chemical Residential Mortgage
7900 Xerxes Avenue South, Suite 170
Bloomington
III. HOUSING PLAN
In 1982, the City of Brooklyn Center adopted the City's Comprehensive Plan, which
included a Housing Plan entitled, "PROVISIONS OF THE BROOKLYN CENTER
COMPREHENSIVE PLAN ADOPTED AS THE CITY'S HOUSING S G PLAN IN ACCORDANCE
WITH MINNESOTA STATUTES 462C".
Since the 1982 Housing Plan was adopted, the City has adopted two new housing plans,
one entitled, "The Brooklyn Center Housing Market: A Study of Trends and Their Impact on the
Community" prepared by the Maxfield Research Group, Inc., and one entitled, "Brooklyn Center
Housing Implementation Plan" prepared by Publicorp, Inc. The Maxfield Study was adopted by
the Brooklyn Center City Council in 1989, and the Brooklyn Center Housing Implementation Plan
was adopted in 1990.
The information presented in this application for funding will include elements of all three
plans with relevant updates of housing data. The description of the housing needs identified in
the plans will focus on single family housing. Additionally, complete copies of all three plans are
available if needed.
A. DESCRIPTION OF THE CTTY OF BRC)C)KT VN CFNTFR PRIN[ IPAI
HOUSING NF,F.DS
A general statement of the City of Brooklyn Center's housing needs is provided by
the housing study prepared by the Maxfield Research Group, Inc. In this study,
the goals are "to study the current image and condition of neighborhoods in the
community, and to assess the impact of demographic and housing market trends on
the vitality of each neighborhood. The objective of the study was to identify areas
where trends are negatively influencing the long term potential of a particular
neighborhood or sub - neighborhood, as well as to provide strategies for
strengthening the livability of neighborhoods and identify goals and objectives the
City can use to meet the changing housing needs of existing and future residents. "
-2-
A summary of the "changing housing needs of existing and future residents"
include the following components which are contained in the City's housing plans.
1. NEE D FOR THE CITY OF BROOKLYN CFNTFR TO STAY
COMPF.TiTIVF FOR FIRST TiMF HOMF RUVFR MARKFT
The Maxfield Study describes the shrinking first time home buyer market
by pointing out "from 1980 to 1990, the number of persons aged 18 to 24
will shrink by fifteen percent (15 %), and the number of persons aged 14 to
17 will shrink by twelve percent (12 %). Statewide demographic data
indicate the 14 to 17 and 18 to 24 age groups will continue to shrink over
the next 20 years in comparison to 1990 numbers. These two groups will
be the major market for both entry level rental housing and smaller, more
modest, single family homes over the next twenty years. " The Maxfield
Study states further that: "In order to remain vital, Brooklyn Center will
need to be able to compete for entry level homeowners, who may find it
more desirable to purchase a modest, but new home in areas such as
Anoka, Champlin, Brooklyn Park, Coon Rapids or Maple Grove, where
affordable, newer starter homes are still available. "
Table 1 on the in the list of attachments shows a demographic profile of the
shrinking first tune home buyer market.
The Minnesota Cities Participation Program (MCPP) would provide a
needed tool to assist the City of Brooklyn Center to remain competitive in
the first time home buyer market.
2. NEED TO MAINTAIN, REHABILITATE AND RRMODFL AGING
HOUSING STOCK
Census data shows that, of the approximately 11,000 housing units in
Brooklyn Center, 49% had been built between 1940 and 1959. Another
31 % were built during the 1960s, and 17.6 % during the 1970s. Table 2 in
the list of attachments shows the age of the housing stock in Brooklyn
Center and several surrounding communities.
The need for a variety of efforts to provide financing programs, including
loans and grants, to provide a source of funds to accomplish single family
rehabilitation and remodeling is addressed in all of the City's housing
plans.
3. NF.F.D FOR STNGLR FAMILY REDEVELOPMENT THROUGH
NEW HOME. CONSTRUCTION
The Maxfield Study points out the need to "remove any deteriorating
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housing, or housing in areas where the land could be better utilized by
buying back homes as they come up for sale. "
The Maxfield Study also emphasizes the need to construct single family
homes in the areas cleared of deteriorated housing, and that "new, single
family homes should be designed to complement existing housing, but with
designs geared to today's lifestyles."
4. NEED TO PROMOTE HOME OWNERSHIP IN THE COMMI NiTV
The increasing difficulty of potential first time home buyers to afford to
buy a home is explained in the Maxfield Study by the following:
"According to a survey by Chicago Title and Trust Company, national
trends show that persons who bought homes in 1988 are making larger
mortgage payments, an average of 32.8 % of family income, compared to
29.3 % in 1987. Also, first time buyers are paying a larger chunk of their
income (34.8%) than repeat buyers (31.4%). These trends are continuing
in the 1990s and confirm that the cost of buying a home is becoming
prohibitive for younger buyers. "
Additionally, both the Brooklyn Center Housing Implementation Plan and
the City's 1982 Housing Plan point out the need to provide home
ownership opportunities, especially for persons of low and moderate
income.
5. NEED TO PROMOTE HOUSING MAINTENANCE THROUGH
CONTPaTED CODE ENFORCEMENT
All three of the City housing plans emphasize the need to continue strong
housing maintenance code enforcement to assist in maintaining the City's
housing stock.
6. NEED TO ASSURE. NEIGHBORHOOD PRESERVATION AND
RE.NOVATTON
All three City housing plans stress the need for neighborhood preservation.
This area addresses a wide variety of needs that encompasses most of the
other identified needs and adds other needs such as providing for and
financing public improvements (streets, curb and gutter, etc.), resident
involvement in neighborhood issues and programs and neighborhood
promotion.
-4-
B. DATA SOURCES AND METHODS USED TO DETERMINE THE
DESCRIBED NEEDS
Development of City housing plans relied on a wide variety of data and
information, including census data, Metropolitan Council reports and specific
studies prepared by professional consultants which address housing trends
throughout the Twin Cities metropolitan area.
Primary research was also used in developing the plans, including personal
inspections of all neighborhoods, interviews with loci, realtors, rental property
managers, local lenders and other individuals who have a stake in trends impacting
housing conditions.
Data was also collected through City records and City staff interviews and research
including assessment department records, building inspection records and research
done by staff including an inventory conducted through a windshield survey of
single family housing conditions.
C. THE SPECIFIC PLAN DEVELOPED TO MEET IDFNTTFIFD HOUSING
NEEDS INCLUDING ITDING THE RESOURCES TO BE AC CESSF.D, AND THE
METHODS IUSF.D TO CARRY OIUT THE PI AN
The Maxfield Research Study focused on identifying the primary housing needs of
the City and the relative housing market position of the City. The 1982 Housing
Plan and the Housing Implementation Plan adopted in 1990 focused on specific
plans and recommendations for meeting the identified housing needs.
Plan elements and recommendations include the following:
1. CONTTNIUE. SPOT RENEWAL PROGRAM
This is the program that provides for acquisition and clearance of
deteriorated single family properties and redevelopment of the properties
with single family homes. The City has acquired and cleared 12 single -
family properties under this program to date, and plans three to four
additional acquisitions for 1996.
2. WORK WITH AVAH ART.E PROGRAMS (MHFA AND HTUD)
WHICH PROVTDF. FUNDS FOR RFHABILUATION LOANS AND
GRANTS AND HOry E MORTGAGES
a. The City currently operates a deferred loan (grant) program with
CDBG funds. The program provides up to $15,000 per home for
home rehabilitation, including replacement and rehabilitation of
mechanical systems, electrical, plumbing, windows, doors,
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exteriors, etc.
b. The City makes use of the MHFA Home Energy Loan program and
Home Improvement Loan program (fix -up fund). Those persons
who do not qualify for the City's CDBG deferred loan program are
referred to these programs.
C. The Brooklyn Center EDA was awarded a $275,000 grant for
neighborhood redevelopment under the MHFA's Community
Rehabilitation Fund Program.
d. The Minnesota Cities Participation Program would provide another
needed element to programs currently underway in the City.
3. CONTINUATION OF HOUSING MAINTENANCE FNFOR gmENT
Both the 1982 and current Housing Implementation Plan emphasize the
need to maintain a high level of enforcement under the City's existing
housing maintenance ordinance. A staff housing maintenance enforcement
team consisting of representatives from the Community Development
Department, Building Inspection staff, Police Department and City
Prosecutor's Office work together to address non- routine and serious
enforcement problems.
Building Inspection staff respond to routine housing maintenance
complaints and provide a day -to -day enforcement of the Housing
Maintenance Ordinance.
Additionally, as recommended by the Housing Implementation Plan, the
City's Housing Commission is currently preparing a Point of Sale code
compliance ordinance for Council consideration.
The City of Brooklyn Center continues enforcement of multi - family
properties through its rental dwelling license provisions. Additionally,
there are several major multi - family rehabilitation projects which have
either been completed or are nearing completion and which total
approximately one -third of the multi - family housing units in the City.
Continued strict enforcement of the City's Housing Maintenance Code and
rental dwelling license provisions have had a positive effect on the ultimate
rehabilitation of several multi - family properties.
4. EXTERIOR MAINTENANCE ASSISTANCE PROGRA1�*
The 1982 Housing Plan calls for an exterior maintenance assistance
program. The City's 1995 CDBG Program allocates $9,306 to continue a
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• program started in 1992. Projects under this new program will be limited
to exterior maintenance, such as painting, siding, roof repair, sidewalk and
step repair for persons 60 years of age and older or for disabled persons.
D. DESCRIPTION OF ANY TARGFT AREAS TO RF, ADDRF.SSF.D IN
THE PI, AN
The southeast neighborhood is the City's oldest. The neighborhood is bounded by
Minneapolis on the south, the Mississippi River on the east, I -94/I -694 on the north
and Shingle Creek on the west. The area's predominant land use is single family
residential.
The Maxfield Study indicates that approximately twenty -five percent (25 %) of the
area's single family homes were constructed prior to 1950, and the remainder were
built in the 1950s or early 1960s. The area's housing style varies greatly. Located
within the area are farmhouses, post -war bungalows, and two -story houses built in
the 1980s.
The City's southeast neighborhood has been targeted as the neighborhood to focus
on for neighborhood preservation and renewal. More MCPP loans are generated
in the southeast neighborhood in than in any of the other 5 city neighborhoods.
• E. PLAN IMPLEMENTATION AND ADnpnSTRATIiE C'APAC'ITY OF CIW
The implementation of the City's housing plan will be undertaken by the Economic
Development Authority in and for the City of Brooklyn Center. In addition to
EDA authority, the Brooklyn Center EDA has all powers granted to HRAs by State
statute. Additionally, the City's Housing Commission will assist the EDA in
implementation of the housing plan.
City staff available to implement the housing plan include the Community
Deveopment Director and Community Development Specialist. Additionally, as
the needs of specific projects may demand, other City staff members are called
upon to provide assistance, including the Building Inspection staff, Assessing and
Engineering departments. Private consultants are also utilized in specialized areas
of plan implementation, such as relocation advisory services and environmental
services.
The City of Brooklyn Center has been actively involved in administering housing
programs for over 15 years, and has implemented numerous housing programs and
projects, both single family and multi - family housing.
With regard to specific programs providing for single family mortgages, the City
• of Brooklyn Center, along with the cities of Columbia Heights, Robbinsdale and
Moorhead jointly developed and offered a single family mortgage program for first
-7-
time home buyers in 1982. In this program, the City of Brooklyn Center issued
$2,750,000.00 in single family mortgage loans.
•
City staff has also worked with the Minnesota City Participation Program (MCPP)
for the past four years.
IV. PROGRAM SPFCIRCS
A. HOW PROGRAM FITS INTO COMPRFHFNSWE HOUSING P1 ,A
The ability to offer low interest mortgage loans for single family homes is an
important element in the overall City housing plan. It provides a necessary g P P tool to
assist the City in keeping its housing stock competitive with housing in neighboring
communities and outer ring suburban housing.
The first time home buyer loan program will also help to achieve a second feature
of the housing plan, which is to encourage home ownership by developing
financing programs to facilitate home ownership, especially for persons of
moderate and low income.
B. BORROWER INCOME T TMiTS
• To provide the greatest possible opportunity for the sale of homes under the first
time home buyer program, the City of Brooklyn Center will use the maximum
household income of $40,800 to qualify potential borrowers.
C. HOTTSR PURCHASE PRICE I IMITS
The house price limits for existing homes will be $95,000, the MHFA limit for the
Twin Cities metropolitan area.
For new construction, the house price limit will also be $95,000, as per MHFA
requirements.
A TARGF.TTNG OF SPF.CIFTC POPTTI ATION GRO TPS
No specific target population groups will be targeted under the program.
E. TARGETING OF ARRA OR HOIISTNG STO K
The program will be open to all neighborhoods in the City.
P g
F. OPTIONAL PROGRAM RNHANCF NTS
• No additional ro ram enhancements will be offered in the 1996 Minnesota City
P g
-8-
Participation Program for Brooklyn Center.
• G.
T F. FOR RF.I,F,ASF. OF FTTNDS
The schedule for the release of funds will be immediate for the six month set aside
period.
H. AMOUNT OF FINDS RFnUFSTFD AND THE ESTITWATED 1`iumBER OF
LOANS TO HE PROVTDFD
Amount of Funds Requested: Maximum allowable
Estimated Number of Loans: 10 -20 loans, depending on allocation (estimated
at $75,000 per loan)
I. MINIMUM ALLOCATION OCATION AC'C'EPTED
$500,000
J. INFORMATION ON ANY UNUSED MORTGAGE REVENUE BONDS
(MRIR) OR MORTGAGE CREDIT CERTTET ATE (MCC) RESOURCE'S
STIL.I. AVAILABLE F IN THE CITY OF BROOKLYN CENTER (NON
MHEA)
• There are currently o
y Mortgage Revenue Bond (MRB) or Mortgage Credit
Certificate (MCC) programs (non -MHFA) offered or available in the City of
Brooklyn Center.
K. THF. RROOKL YN FNTFR FDA WTi L A CFSS MHFA MARKFTTNG
SUPPORT MATERIALS IN ITS MARKETING EFFORTS
V. ECONOMIC VTARTT TTY
DESCRIBE, WHY YOU FEEL THFRF IS SUFFICIENT DEMAND IN YOUR
MARKET TO USE THE MLNNFSOTA CITIES PARTICTPATION pgOGRAM
FUNDS REQUESTED INDICATE THE DATA SOURCES TJSFD TO PROJECT
DF,MAND
A. The City of Brooklyn Center exceeded its allocation amount for mortgage loans
under the 1992, 1993, 1994, and 1995 MCPP.
The City anticipates continued demand for MCPP funds in 1996.
B. One of the indicators of demand for the Minnesota Cities Participation Program in
• the City of Brooklyn Center is the value of single family homes in the City. Table
3 in the list of attachments shows a breakdown of the value of single family homes
-9-
in the City and the number of homes valued at $95,000 or less.
• Over ninety percent (90%) of the single family homes in the City of Brooklyn
Center are valued within the price range eligible for the Minnesota Cities
Participation Program.
C. Real estate sales in the City of Brooklyn Center currently average approximately
350 homes per year with an average $79,300 sale price. The source of this real
estate sales data is from the City's assessing department and is based on actual
single family home sales as recorded by Hennepin County.
D. Table 4 in the list of attachments shows a breakdown of the age of the Brooklyn
Center population according to 1990 census data. The data shows that over
twenty-four percent (24%) of Brooklyn Center's population is fifty -five (55) and
over, which is an indication that many of these people will be "turning over" their
houses as many change to other living arrangements.
E. As in past years, the City staff receives numerous calls from individuals who are
apparently "shopping" cities to find out which city can offer the best deal for a
single family mortgage. As indicated previously in this proposal, the City of
Brooklyn Center is in competition with other first ring suburbs and outlying
suburbs for starter homes. The Minnesota City Participation Program would
• provide a needed tool to address the requests of these individuals looking for the
best mortgage available.
F. In an interview with a mortgage loan officer from Marquette Bank Brookdale the
need for additional first time home buyer funds from a local source became
apparent. Presently, Marquette Bank is authorized to fund first time home buyer
loans under the Minnesota Mortgage Program. The mortgage loans under this
program cannot be restricted to the City of Brooklyn Center. According to
Marquette Bank Brookdale, requests for mortgage funds under the Minnesota
Mortgage Program exceed funds available in the program. The Minnesota City
Participation Program would help to address this unmet need for additional
mortgage funding.
VI. NEW CONSTRUCTION RF()IJIREMMNTS
The EDA would like to retain an option for the use of MCPP funds on 1 to 2 lots cleared
of structurally substandard structures and owned by the EDA.
VII. SIGNATURES
This application for funding for the Minnesota City Participation Program (MCPP) is
• submitted by the undersigned with the full knowledge and consent of the governing body of this
organization or City and is, to the undersigned's best knowledge, accurate in all details.
-10-
ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR
• THE CITY OF BROOKLYN CENTER
Date:
By: Myrna Kragness
EDA President
By: Michael J. McCauley
EDA Executive Director
•
•
-11-
LIST OF ATTACHMENTS
1. TABLE l - Population distribution by age
2. TABLE 2 - Age of housing stock - Brooklyn Center and area
communities
3. TABLE 3 - Number and assessed value ranges of single-family
• homes
4. TABLE 4 - Age breakdown of Brooklyn Center population (1990
census)
5. TABLE 5 - Total dwelling units in the City
6. Confirmation letters from participating lenders
-12-
I
1
r
VOPU1.A•r[ON insi'unurion BY AGE
Seven- County Twin Cities Area
1980 -2010
I
Change Change Change
Group Ap 1980 1990 2000 2010 1980 -1990 1990 -2000 2000 -20.10
Youth 0 -19 632,224 614,916 616,770 552 (17 1,854 (64,530)
Young Adult, 20 -24 204 171,912 147,840 167,560 (32 (24,072) 19,720
Adult 25 -34 374,368 425,372 332 330,400 51 (92,732) (2
Middle -Age 35 -49 330,223 491,492 600,600 516 161 109,108 (83
Empty Nester 50 -64 256,289 268 355 502 12 86 146,940
Young Senior 65 -74 105,479 130,036 133,980 158,120 24,557 3,944 24,140
Old Senior 75+ 82,726 101,384 122,430 132,160 18,658 21,046 9,730
Total 1,985,873 2,204,000 2,310,000 2,360,000 218 106,000 50,000
Sources:. U.S. Census
1986 Metropolitan Council Estimates
• 'I
f r
TABLE, 2
AGE OF 11OUSING STOCK
BROOKLYN CENTER AND AREA COMPIUNITIES
1980
----------------- - - - - -- Year Structure Built ------------------
_ -_ --
Year-Round 1970 -1980 1960 -1969 1940 -1959 1939 - Earlier
Units No. Pct. No. Pct. No. Pct. No. Pct.
Developed Area
BROOKLYN CENTER 10,978 1,932 17.6 3,407 31.0 5,420 49.4 219 2.0
Crystal 9,093 798 8.8 2,498 27.5 5,360 58.9 437 4.8
flew (lope 7,837 1,754 22.4 4,948 63.1 1,080 13.8 55 0.7
Osseo 1,040 206 19.8 266 25.6 379 36.4 189 18.2
Robbinsdale 5,798 582 10.0 861 14.8 2,915 50.3 1,440 24.8
Camden (Mpls.) (N/A (N /A (N /A (N /A (N/A (N /A (N/A (N /A (N /A
Subtotal 34 5,272 15.1 11,980 34.5 15,154 43.6 2,340 6.7
Developing Area
Maple Grove 6,764 5,383 79.6 942 13.9 281 4.1 158 2.3
Brooklyn park 15,803 7,625 48.2 5 35.7 2,307 14.6 228 1.4
Dayton (part) 606 360 59.4 98 16.2 65 10.7 83 13.7
Champlin 2,805 1,475 52.6 827 29.5 350 12.5 153 5.4
Subtotal 25,978 14,843 57.1 7,510 28.9 3,003 11.6 622 2.4
Hennepin County 379 77,533 20.4 77,896 20.5 112,080 29.6 111 29.4
Twin Cities Seven - County
Metropolitan Area 681 190,422 27.9 161 23.7 200,031 29.3 196,215 28.8
4n�► t`T n •
9 Rr r.nn of tl►e ('engu4. 11. R. ft�nAi►r� nF Pnnulattnn nncl Ilousinn. 1
T
• ABLE 3
CITY OF BROOKLYN CENTER
SINGLE- FAMILY HOME VALUES
<' >ar
>... del:: <V' .
ue ....::::: >:..... reenla e
Under $40,000 60 .8%
$40 $60 415 5.6%
• $60 - $80 5 72.3%
$80 - $90 1 14.6%
j $90 $100 272 3.7%
Over $100,001 220 3.0%
Note: ?'here are 7,028 single-family homes in Brooklyn Center valued at $95, 000
• or less.
i
TABLE 4
AGE OF BROOKLYN CENTER RESIDENTS (1990 CENSUS) •'
rlUP12. Race by Scx by Age (Univcrse: (emms)
(•---------- Tolal ------ - - - - - While [)lack AmcricmbidlanAiskIiiWAlcut Asian /l'aclflcislanda MerRacc
A In 11 rerlor15 Luc Emwc ti11c I:rw (: E1alc Ecinalc Luc Lemllc ma% l:=lc Malc amalG
Undcr 1 371 215 156 167 131 32 16 4 2 9 4 3 3
1 2nd 2 933 464 469 373 382 56 59 5 8 18 14 12 6
3 2nd 4 858 449 409 371 325 48 55 6 3 18 21 6 5
5 435 217 218 173 .176 30 34 1 1 10 5 3 2
6 369 178 191 145 158 14 23 6 1 11 8 2 1
Ito 9 1157 581 576 491 485 54 54 8 6 14 22 8 9
10 and 11 728 385 3.13 317 285 40 25 6 5 16 25 6 3
12 and 13 694 346 348 293 294 30 27 7 5 11 19 5 3
14 316 168 148 135 123 20 18 3 2 6 3 4 2
15 326 174 152 148 129 13 13 2 5 10 5 1 0
16 339 166 173 140 144 19 13 0 3 6 13 1 0 •
17 377 185 192 162 168 If 12 2 3 9 9 1 0
18 340 181 159 159 145 13 4 1 2 8 4 0 4
19 380 198 182 179 154 10 15 1 5 5 6 3 2
10 410 184 226 159 199 13 16• 4 3 7 8 1 0
21 392 198 194 175 166 it 17 3 1 8 7 1 3
22 to 24 1327 601 723 5.11 623 35 62 6 8 21 24 1 6
25 10 29 2761 1386 1375 1278 1242 60 85 14 18 28 25 6 5
30 to 34 2611 1316 1295 1219 1155 60 89 10 19 19 23 8 9
35 to 39 2030 997 1033 899 950 49 47 12 12 29 21 8 3
40 10 44 1767 829 938 760 860 32 34 5 10 24 27 8 7
4510 49 1515 725 790 686 748 20 17 7 10 9 15 3 0
501054 1417 606 811 583 783 10 14 2 6 II 6 0 2
551059 1781 807 974 790 948 10 13 3 6 3 5 1 2
60 and 61 707 343 361 333 358 4 2 2 1 4 3 0 0
62 to 64 1000 496 501 484 493 7 5 1 0 4 6 0 0
651o69 1339 613 696 633 680 5 7 1 1 2 7 2 1
70 to 74 960 432 528 421 521 8 1 1 0 2 5 0 1
75 to 79 583 224 359 221 353 1 4 0 0 1 1 1 1
60 to 84 379 134 245 UO 2.10 2 3 1 0 1 2 0 0
R5 and ovct 285 67 218 67 215 0 1 0 1 0 1 0 0
• TABLE 5
TYPE OF HOUSING
(1996 CITY ASSESSOR RECORDS)
7,365 Single- Family Homes
621 Townhomes
I
126 Condominium Units
108 Duplex Units
6 < Triplex I,nits
3 Apartment Units
11,467 `Total
7 Marquette Mortgage
A Division of Marquette Bank, N.A.
• 4301 Winnetka Avenue North
New Hope, MN 55428 -4926
(612) 536 -6262
Outside Metro Area (800) 295 -6270
January 27, 1996
Tom Bublitz
The City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
Dear Tom:
This letter is to advise you of Marquette Bank Brookdale (dba Marquette Mortgage)
desire to originate mortgage loans for The City of Brooklyn Center under the MHFA City
Participation Program. Karen DuCharme at Marquette Bank Brookdale, (612) 569 -1458,
will be the main contact for applicants interested in applying for the funds.
Our participation in the program is, of course, subject to the approval of the Minnesota
• Housing Finance Agency.
Thank you for the opportunity to assist in providing financing for low and moderate
income first time homebuyers in the Brooklyn Center area. Feel free to contact me at
(612) 536 -6261 should you have any questions.
Sincerely,
Jul Janssen
Vice President
C. Karen DuCharme
•
5/1/95 MRKTING\MHFAPART.DOC
NIAk ON Norwest Mortgage, Inc.
Oee1N
NNWENT MORTGAGE 7378 North Kirkwood Court
•
®NNNN Maple Grove, MN 55369
OS 'TIN 6121424 -1400
Fax 6121424 -3636
January 26, 1996
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
'RE: Minnesota City Participation Program
Dear City of Brooklyn Center:
Norwest Mortgage would like to once again participate as a lender in the
proposed 1996 City Participation Program.
Norwest Mortgage has done extensive training on the MHFA programs and is
very experienced with the "first -time buyer" loans. If we are successful
in being designated as an originating lender, we Mould want our Maple
Grove office to be the contact for takin applications.
• g The address is:
Norwest Mortgage, Inc.
7378 North Kirkwood Court
Maple Grove, MN 55369
If you need further information, please contact John Roti at 424 -1400.
Sincerely,
Sohn Roti
Vice President
ck
BELL MORTGAGE
a division of BancBoston Mortgage Corporation
MORTGAGE BANKERS SINCE ISk
W anuary 17, 1996
City of Brooklyn Center
Tom Bublitz
Assistant EDA Coordinator
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
RE: Minnesota Housing Finance Agency Cities Program
Dear Mr. Bublitz,
Please accept Bell Mortgage Company's letter of intent to originate mortgage loans for the city of Brooklyn Center under the
Minnesota Housin- Finance Agency 1996 Minnesota City Participation Program.
Bell Mortgage Company is familiar with MHFA program guides and has experience processing loans under MHFA's fast time
homebuyer programs. Bell Mortgage Company understands that we will be required to enter into a contract with MHFA as to
adherence to the requirements of the program and loan origination.
Bell Mortgage requests that applications for loans under the Minnesota Community Participation Program be taken at these Bell
Mortgages offices:
* 1000 Shelard Parkway, Suite 500, Minneapolis, MN 55426
Phone: 591 -1880 Fax: 591 -5801
• * 3601 Minnesota Drive, Suite 550, Bloomington, MN 55435
Phone: 893 -0865 Fax: 897 -1892
* 6235 Earle Brown Drive, Brooklyn Center, MN 55430
Phone: 560 -1880 Fax: 560 -3003
* 761 West 78th Street, Suite 209, Chanhassen, MN 55317 -9573
Phone: 934 -2355 Fax: 934 -3830
If you have any questions, correspondence, etc. please direct to:
Barb Cardinal, MMCPP Coordinator
Bell Mortgage Company
1000 Shelard Parkway
Minneapolis, MN 55426
Phone: 591 -1880 Fax: 591 -0835
We appreciate the opportunity you have given us. Thank you.
Sincerely,
Gary Widine
Chief Operations Officer
• 1000 SHELARD PARKWAY SUITE 500 MINNEAPOLIS, MN 55426 (612) 591 -1880 FAX (612) 591-9060
3601 MINNESOTA DRIVE, SUITE 550 • BLOOMINGTON, MN 55435 • (612) 893 -0865 FAX (612) 897 -1892
' 6235 EARLE BROWN DRIVE • BROOKLYN CENTER, MN 55430 • (612) 560 -1880 • FAX (612) 560 -3003
761 WEST 78TH STREET, SUITE 209 • CHANHASSEN, MN 55317 • (612) 934 -2355 • FAX (612) 934 -3830 -0—
MORTGAGE CORPORATION
January 26, 1996
Tom Bublitz
City of Brooklyn Center
6301 Shingle Creek Pkwy
Brooklyn Center, MN 55340
RE: 1996 MHFA Cities Participation
Dear Mr. Bublitz:
Thank you for your acceptance for TCF Mortgage Corporation to be
one of the lender's in MHFA's City Participation Program for your
city. TCF Mortgage Corporation is an approved MHFA lender and we
are looking forward to increasing affordable homeownership in your
area.
The Loan Officer contact will be:
Coleman Rader
• TCF Mortgage Corporation
7984 Brooklyn Blvd.
Brooklyn Park, MN 55445
424 -8007
Please contact me when you have finalized the program requirements.
I will be the main contact person for program information, changes,
etc. We appreciate the confidence that you have expressed in
allowing TCF Mortgage to participate in this program and we look
forward to working with you.
Please call me if I can be of further assistance.
Sincerely,
Patricia Roycraft
Assistant Vice Pres ent
•
801 MARQUETTE AVENUE MINNEAPOLIS, MINNESOTA 55402 -3475
Inland Mortgage Corporation
5100 Gamble Drive
Suite 470
St. Louis Park, Minnesota 55416 -1522
• An t—,n Financral Company
January 16, 1996
Mr. Tom Bublitz
Brooklyn Center EDA
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
In Re: MINNESOTA CITY PARTICIPATION PROGRAM
MINNESOTA HOUSING FINANCE AGENCY
Dear Mr. Bublitz:
• It is soon enrollment time for the MCPP program again, and I am writing in hopes of
being a participating Lender for the City of Brooklyn Center again this year.
Thank you for working with us in the past, and we hope to be able to work with you again
this year.
Sincerely,
���19 -lih
Tom Leland
Branch Manager
612 546 1520
INVESTORS MORTGAGEM
A DIVISION OF FIRST^R HOME MORTGAGE CORPORATION
January 26, 1996
Mr. Tom Bublitz
City of Brooklyn Center
6301 Shingle Creek. Pkwy
Brooklyn Center, MN 55430
Dear Mr. Bublitz,
This letter is to serve as notice of Investors Mortgage's willingness and desire to administer, process and
close mortgage loans on behalf of the City of Brooklyn Center for their 1996 MCPP funds.
We would like all of our mortgage offices to be able to participate in the program, however, only the
following office needs to be listed for advertising purposes;
Investors Mortgage
• 1730 Plymouth Road South, Suite 301
Minnetonka, MN 55343
Attn: Steve Sandvig
Ph: 542-3000
If there are any questions or additional documentation required, please give me a call at 475 -8775
Sincerely,
David G. Ruesink
Assistant Vice President
Secondary Marketing
•
1730 Plymouth Road South, Suite 301 • Minnetonka, Minnesota 5530 • ( 612) 542 -3000
o i�1- 4 =4 dj4o I V �b� 34' 4 ✓lc iJ�
Frstar Home Mortgage Corporation
FiRsTA I- A
96
'ITY O F (A0*kLVA) 3F&trML
6301 e R£ck - Pec.)Y
/ ltjAn ).
ILEr�SE f!`1CLQ E
4d A) F O 2 7 !,Q -LYKJ
f D S
•}1JD,QFSS -�N ?rf ONE IUu MSS -� ct�oucD G-�kE
X4 t•F lq-5 Ft}•L Lo Z
�2oa 1� ��? 1J ���jL � /►� (� �J, SSA 3 0
564 - 100c>
Edifla. M. inesc•, 554,35
E'2928 Jx�
** TOTAL PAGE.002 **
RMG residential mortgage group, inc.
January 15, 1996
Tom Bublitz
City of Brooklyn Center
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
Mr. Bublitz,
Please accept this letter as notice of Residential Mortgage Group's (RMG) willingness
and desire to administer, process and close mortgage loans on behalf of the City of
Brooklyn Center for the 1996 MCPP funds. You may list the following information for
advertising purposes:
Residential Mortgage Group, Inc.
6465 Wayzata Boulevard, Suite 720
St. Louis Park, MN 55426
Erin Ryan, Loan Officer
Phone: 593 -1169
Should you have any questions or require additional documentation, please do not
hesitate to contact me at (612)593 =1169. We look forward to working with you again to
help provide affordable housing alternatives for the City of Brooklyn Center.
Since ely,
Alvin J. Gelschus
President
6465 Wayzata Boulevard,. suite 720 • A Louis Park, MN 55426 • 612-593-1169 • FAX 612 - 593-1634
Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION AUTHORIZING SUBMITTAL OF A REQUEST FOR
PROPOSAL UNDER THE 1996 MINNESOTA CITY PARTICIPATION
PR )_GRAM ( C'PP)
WHEREAS, the Minnesota City Participation Program (MCPP) provides
Minnesota cities with mortgage financing for first -time home buyers; and
WHEREAS, the housing plans of the City of Brooklyn Center recognize the need
for affordable housing opportunities for first -time home buyers of moderate and low income; and
WHEREAS, the Minnesota City Participation Program will provide needed
financing for first -time home buyers in the City of Brooklyn Center.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of Brooklyn Center as follows:
1. Staff is hereby authorized to submit the application for funding under the
• Minnesota City Participation Program.
2. The Brooklyn Center EDA authorizes the submission of a proposal deposit
of one percent (1 %) of the final allocation of mortgage funds for the City of
Brooklyn Center under the Minnesota City Participation Program with the
understanding the proposal deposit will be refunded upon the sale of the
mortgage revenue bonds. The source of funds for the proposal deposit shall
be from the EDA special operating fund.
3. The Brooklyn Center EDA authorizes the submission of a processing fee to
the Minnesota Department of Finance to cover costs involved with processing
the City's mortgage fund allocation under the Minnesota City Participation
Program with the understanding that the fee to be charged will be $20 for
each $100,000 in allotment provided and that the fee will be non - refundable
and shall be appropriated from the EDA administration budget.
• Date President
EDA RESOLUTION NO.
•
The motion for the adoption of the foregoing resolution was duly seconded by commissioner
and upon vote being taken thereon, the following voted in
favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
•
•
Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION APPROVING A SUPPLEMENTAL DEVELOPMENT
AGREEMENT BY AND AMONG THE CITY OF BROOKLYN CENTER, THE
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
BROOKLYN CENTER, THE ECONOMIC DEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF BROOKLYN CENTER, AND PRESBYTERIAN
HOMES HOUSING AND ASSISTED LIVING, INC.
WHEREAS, the City of Brooklyn Center ( "City "), the Housing and Redevelopment
Authority in and for the City of Brooklyn Center ( "HRA ") and Earle Brown Commons Partnership
(the "Original Developer") entered into a Contract for Private Development dated as of July 16, 1986
(the "Redevelopment Contract "), providing for development of a multifamily rental housing facility
on certain property in the City (the "Property "); and
WHEREAS, the Property is located in the Earle Brown Farm Redevelopment District
(the "Project Area "; now part of a project area known as Housing Development and Redevelopment
Project No. 1) and a tax increment financing district (the "TIF District "), all created under Minnesota
Statutes Sections 469.001 to 469.047 and Sections 469.174 to 469.178 and predecessor statutes
(collectively, the "Act "); and
WHEREAS, the HRA and the Original Developer entered into an Assessment
A «
Agreement d f
g dated as o September 1, 1986 (the Assessment Agreement"), which agreement was
modified by Modification No. 1 to Assessment Agreement and Certification of Assessor dated as of
June 29, 1995 (the First Modification) between the HRA and Earle Brown Commons Limited
Partnership II (the "Successor Developer ") as successor to the Original Developer; and
WHEREAS, the HRA and the Original Developer entered into a Deficiency
Agreement dated as of September 1, 1986 (the "Deficiency Agreement "), specifying certain minimum
tax increments payable in connection with the Property; and
WHEREAS, by Resolution No. 87 -170, the City has transferred control and authority
regarding the Project Area and the TIF District from the HRA to the Economic Development
Authority in and for the City of Brooklyn Center ( "EDA"); and
WHEREAS, Presbyterian Homes Housing and Assisted Living, Inc. ("Presbyterian
Homes"), proposes to acquire the Property from the Successor Developer, which acquisition will be
financed through issuance by the City of its $4,700,000 Elderly Housing Revenue Bonds
(Presbyterian Homes Housing and Assisted Living, Inc. Project), Series 1996 (the "Housing Bonds ");
and
WHEREAS, in connection with such acquisition and issuance of the Housing Bonds,
the City has determined a need to enter into a Supplemental Development Agreement by and among
EDA RESOLUTION NO.
the City, the HRA, the EDA and Presbyterian Homes (the "Supplemental Agreement "), which
agreement is intended to supersede the Redevelopment Contract and the Deficiency Agreement; and
WHEREAS, the EDA has reviewed the Supplemental Agreement and finds that the
execution of the same and the EDA's performance of its obligations thereunder are in the best interest
of the City and its residents.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority
in and for the City of Brooklyn Center as follows:
1. The Supplemental Agreement as presented to the EDA board is approved
subject to modifications that do not alter the substance of the transaction and
that are approved by the President and Executive Director, provided that
execution of the Supplemental Agreement by such officials shall be conclusive
evidence of their approval.
2. The President and Executive Director are hereby authorized to execute the
Supplemental Agreement on behalf of the EDA and to carry out, on behalf of
the EDA, the EDA's obligations thereunder.
Date President
The motion for the adoption of the foregoing resolution was duly seconded by commissioner
and upon vote being taken thereon, the following voted in
favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
.Lfbyc
MEMORANDUM
Date: February 7, 1996
To: Michael J. McCauley, City Manager
From: Tom Bublitz, Community Development Specialist
Subject: Resolution Approving One (1) Brooklyn Center Economic Development
Authority Deferred Loan (File No. H -136 [8062]) and Resolution
Approving One (1) Brooklyn Center Economic Development Authority
Deferred Loan (File No. H -137 [8063])
Attached are two Community Development Block Grant (CDBG) home rehabilitation deferred
loan projects. The information contained in these projects is confidential and not available to
the general public. A summary of the projects follows:
Income eligibility verification has been completed for two applicants on the CDBG
deferred loan waiting list. Both applicants, 8062 and 8063, were initially placed on
the waiting list in November 1992. The 1995 dates on the enclosed applications
• reflect the dates their respective income eligibilities were established by Hennepin
County.
Neither home /applicant has received a previous CDBG deferred loan.
The current market value for file no. H -136 (8062) is $65,300. The major work
items as specified in the work specifications (see attached memorandum from David
Fisher, Building Inspector, dated January 25, 1996) include updating electrical,
furnace replacement, plumbing, including water heater and well capping, floor
covering, siding, soffit and fascia, trim and roof replacement.
The current market value for file no. H -137 (8063) is $74,000. The major work
items in the work specifications (see memorandum from David Fisher, Building
Inspector, dated January 30, 1996) include updating electrical, furnace replacement,
plumbing repair, ceiling repair, kitchen floor covering replacement, doors,
aluminum trim, aluminum soft and fascia, roof replacement, driveway paving and
repair of overhead garage door.
Attached to this memorandum are applications for both projects, work specifications for each
project and EDA resolutions approving each rehabilitation loan project.
•
Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION APPROVING ONE (1) BROOKLYN CENTER ECONOMIC
DEVELOPMENT AUTHORITY DEFERRED LOAN (FII F NO H-1 16 [806 1)
WHEREAS, the Brooklyn Center Economic Development Authority established
a Home Rehabilitation Deferred Loan Program to assist low and moderate income individuals in
the maintenance and repair of their homes; and
WHEREAS, the Brooklyn Center Economic Development Authority has received
one (1) application (file no. H -136 [8062]) from eligible individuals to receive deferred loan
assistance; and
WHEREAS, an inspection by the City of Brooklyn Center has determined that the
work is necessary and appropriate under the Brooklyn Center Economic Development Authority
ty
Deferred Loan
Program; and
WHEREAS, the cost of the proposed deferred loan application is estimated at
$15,000.
• NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of Brooklyn Center that:
1. The Brooklyn Center Economic Development Authority does approve the
P t3' PP
one (1) housing rehabilitation deferred loan application (file no. H -136
[80621) as recommended by staff.
2. That the work be performed as recommended in the memorandum
accompanying this resolution dated February 12, 1996, and that the
applicant be directed to obtain the necessary bids for staff review and
approval.
3. The project shall not exceed the deferred loan amount of $15,000.
Date President
The motion for the adoption of the foregoing resolution was duly seconded by commissioner
• and upon vote being taken thereon, the following voted in
favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO.
RESOLUTION APPROVING ONE (1) BROOKLYN CENTER ECONOMIC
I
DF.VFLOPMF.NT AUTHORITY DEFERRED LOAN (FTT F NO 14-137 [R0�)
WHEREAS, the Brooklyn Center Economic Development Authority established
Y P ty
a Home Rehabilitation Deferred Loan Program to assist low and moderate income individuals in
the maintenance and repair of their homes; and
WHEREAS, the Brooklyn Center Economic Development Authority has received
one (1) application (file no. H -137 [8063]) from eligible individuals to receive deferred loan
assistance; and
WHEREAS, an inspection by the City of Brooklyn Center has determined that the
work is necessary and appropriate under the Brooklyn Center Economic Development Authority
Deferred Loan Program; and
WHEREAS, the cost of the proposed deferred loan application is estimated at
$15,000.
• NOW, THEREFORE, BE IT RESOLVED by the Economic Development
Authority in and for the City of Brooklyn Center that:
1. The Brooklyn Center Economic Development Authority does approve the
one (1) housing rehabilitation deferred loan application (file no. H -137
[8063]) as recommended by staff.
2. That the work be performed as recommended in the memorandum
accompanying this resolution dated February 12, 1996, and that the
applicant be directed to obtain the necessary bids for staff review and
approval.
3. The project shall not exceed the deferred loan amount of $15,000.
i
Date President
The motion for the adoption of the foregoing resolution was duly seconded by commissioner
• and upon vote being taken thereon, the following voted in
favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
L