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HomeMy WebLinkAbout1994 05-23 EDAP Regular Session i EDA AGENDA CITY OF BROOKLYN CENTER MAY 23, 1994 (following adjournment of City Council meeting) 1. Call to Order 2. Roll Call 3. Approval of Agenda and Consent Agenda -All items listed with an asterisk 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 in its normal sequence on the agenda. 4. Approval of Minutes: * a. May 9, 1994 - Regular Session 5. Resolutions: * a. Authorizing Execution of Program Application Commitment Agreement for the 1994 Minnesota Housing Finance Agency's Minnesota City Participation Program -This is the City's first -time home buyer program. * b. Authorizing Execution of Mortgage Revenue Bond Allotment Agreement for the 1994 Minnesota Housing Finance Agency's Minnesota City Participation Program -This is the City's first -time home buyer program. 6. Adjournment Came Mwft Date May 23, 1944 City of Brooklyn Center Agenda Rem Numb« A / a — X Request For Council Consideration Item Description: EDA MINUTES - MAY 9, 1994 - REGULAR SESSION Department Approv P. I Brad Hoff , Director of Community Development A 41 � Manager's Review/Recommendation: No comments to supplement this report Comments below /attached Summary Explanation: (supplemental sheets attached _) Recommended City Council Action: ,r MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CI'T'Y of BROOKLYN CENTER IN THE COUNTY OF 0 NNEPTN AND THE STA'T'E OF MINNESOTA REGULAR SESSION MAY 9 1 1994 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority (EDA) met in regular session and was called to order by President Todd Paulson at 9:51 p.m. ROLL BALL. President Todd Paulsen, Commissioners Celia Scott, Dave Rosene, Barb Kalligher, and Kristen Mann. Also present were City Manager Gerald Splinter, Public Works Coordinator Diane Spector, Planning and Zoning Specialist Ron Warren, City Attorney Charlic LeFevere, Community Development Specialist Tom Bublitz, City Engineer Mark Maloney, and Council Secretary Barbara Collman. APPROVAL OF AGENDA AND CONSENT AQEND President Paulson inquired if any Commissioner requested any items be removed from the consent agenda. No requests were made. APPROVAL OF MINT.JTES APRIL 25, 1994 - REGULAR SESSION There was a motion by Commissioner Scott and seconded by Commissioner Kalligher to approvc the minutes of the April 25, 1994, EDA meeting as printed. The motion passed unanimously. RESOL TIQ RESOLUTION NO, 94 -16 Commissioncr Scott introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING EXECUTION OF PURCHASE AGREEMENT FOR THE ACQUISITION OF 6933 BROOKLYN BOULEVARD AND AUTHORIZING PAYMENT FOR ACQUISITION COSTS The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Kalligher, and the motion passed unanimously. 5/9/94 - 1 RESOLUTION NO 94 -17 Commissioner Scott introdticr the following resolution and moved its adoption; RESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN REAL PROPERTY W41'HIN THE CITY OF BROOKLYN CENTER AND ESTABLISHING OFFER OF JUST COMPENSATION FOR SAID PROPERTY LOCATED AT 5900 EMERSON AVENUE NORTH IN BROOKLYN CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Kalligher, and the motion passed unanimously, PUBLIC HEARIN 1 REGARDING SALE Q" DREW _AVENUE NORTH TO TWIN C:1` ILS HABITAT FOR HUMANITY; The City Manager explained the conditions of this sale would be the same as a previous sale, Commissioner Rosene inquired what the Lutheran Church of the Master intends to do with the house on the adjoining lot and whether it could be donated to Habitat for Humanity. The Planning and zoning Specialist said the church hopes to relocate the house but plans are not yet finalized. Commissioner Rosene stated he has participated in the Habitat for Humanity program and asked Tony Beckstrom, a representative of Habitat for Humanity, to address the LUA. Mr. Beckstrom, construction manager for Habitat for Humanity, said the Brooklyn Center churches, after participating in Minneapolis projects, have wanted the program in their own community. A project was done last year and 'now the lot at 5206 Drew Avenue has been suggested for another project. He said the home guilt would be a rambler -type house similar to last year's home, Commissioner Mann asked whether there would be a garage. Mr. Beckstrom said there would be a detached garage. Commissioner Rosene asked if the project would be remodeling an existing structure. Mr. Beckstrom said currently the lot is empty, President Paulson asked Mr. Beckstrom to contact the Council for any help it can offer. Commissioner Rosene commented Commissioner Kalligher had recently seen a newspaper announcement of an award which Habitat for Humanity received, He asked how many houses have been built. Mr. Beckstrom said he has heard a figure of 20,000 homes, but that may be world -wide. He said the organization began in Georgia in 1976, was started in this area nine years ago, and is growing. 5/9/94 - 2 .. Commissioner Rosene asked Mr. Beckstrom. to tell the EDA about the Habitat for Humanity homes in Florida. Mr, Beckstrom said out of 20 houses in one block, the only ones which were standing following Hurricane Andrew were those built by Habitat for Humanity. President Paulson opened the meeting for the purpose of a public hearing regarding the sale of 5206 Drew Avenue North to Twin Cities Habitat for Humanity at 10 p,m, He inquired if there was anyone present who wished to address the Council. There being none, President Paulson asked for a motion to close the public hearing. There was a motion by Commissioner Kalligheir and seconded by Commissioner Rosene to close the public hearing at 10:41 p.m. The motion passed unanimously, The City Manager presented a Resolution Authorizing Execution of Purchase Agreement for Sale of 5205 Drew Avenue: North to Twin Citics Habitat for Humanity, RESOLUTION NO. 94 -18 Commissioner Scott introduced the following rvKllt+tion and moved its adoption: RESOLUTION AUTHORIZING EXECUTION OF PURCHASE AGREEMENT FOR SALE OF 52(16 DREW AVENUE NORTH TO TWIN CITIES HABITAT FOR HUMANITY The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Kallighcr, and the motion passed unanimously. ADJOURNMENT There was a motion by Commissioner Scott and seconded by Commissioner Rosene to Ra.RAITW Thn Brnnklvn Cc-ntc;r Frnnnmin Todd Paulson, President Recorded and transcribed by: Barbara Collman TimeSavcr Off Site Scerctarial 519/94 - 3 - CITY OF BROOKLYN CENTER C-2 Meefog Dare 5/23/94 A Item Mmbw REQUEST FOR COUNCIL CONSIDERATION ITEM DESCIUMON: RESOLUTION AUTHORIZING EXECUTION OF PROGRAM APPLICATION COMMITMENT AGREEMENT FOR THE 1994 MINNESOTA HOUSING FINANCE AGENCY'S MINNESOTA CTTY PARTICIPATION PROGRAM DEPT. APPROVAL: Tom Bublitz, Community Development Specialist ::::::: ssssssss sssssssssssssssss : : : : : : : : : : : : : : : : : : : : : * :� : :�i : : : : :: MANAGER'S REVIEWMECOMMENDATION: � No comments to supplement this report . Comments below /attached • SUMMARY EXPLANATION: (supplemental sheets attached XL) At the April 11, 1994 EDA meeting, the EDA Board authorized the submission of an application for the 1994 MHFA first -time home buyer program known as the Minnesota City Participation Program (MCPP). The EDA's application was approved by the META, along with 59 other cities statewide. This will be the third year the City of Brooklyn Center will participate in the MCPP. In 1992, 28 MCPP loans were done in the City, and as of May 5, 1994, 35 MCPP loans were either closed or in process under the 1993 program. For the 1994 MCPP, $38,156,000 in mortgage funds have been allocated to the 60 cities in the program. Brooklyn Center's allocation for the 1994 program is $1,099,041. Interest rates on the mortgages will be determined after the sale of bonds. The eligibility requirements for borrowers remain unchanged from last year's program, which means the income limit for households purchasing homes under the first -time home buyer program is set at $39,680, adjusted. The major changes in the program for 1994 are the options for increasing the house price limits for the program. As you may recall, the maximum house price for existing homes under the MCPP for the last two years has been $85,000. This year, the legislature has authorized the cities to • increase the eligible home price to a maximum of $92,544. The cities participating in the MCPP have the option of going with either the lower $85,000 amount or the upper limit of $92,544. Unless the EDA Board has a concern about raising the house price limits for the program, the EDA staff will be submitting the higher amount of $92,544 to MHFA for the 1994 program. The majority of Brooklyn Center homes are at $85,000 or below, but the increased limit would allow us to include the maximum number of homes under the program. All cities participating in the MCPP are required to execute a Program Application Commitment Agreement. The Agreement sets forth the operating terms and conditions of the MCPP and is the same for all 60 cities participating in the program. A copy of the Program Application Commitment Agreement is included with this memorandum. gr � RECOMbdENDATION: Staff recommends approval of the Resolution Authorizing Execution of Program Application Commitment Agreement for the 1994 Minnesota Housing Finance Agency's Minnesota City Participation Program. • • MINNESOTA HOUSING FINANCE AGENCY MINNESOTA CITIES PARTICIPATION PROGRAM PROGRAM APPLICATION - COMMITMENT AGREEMENT THIS APPLICATION AND AGREEMENT is made and entered into by and between the Brooklyn Center Economic Development Authority (hereinafter refereed to as the "City "), with its office at, , 6301 Shingle Creek Pkwy., Brooklyn Center, Minnesota 55430, and the Minnesota Housing Finance Agency (hereinafter referred to as the "MHFA "), with its office at 400 Sibley Street - Suite 300, St. Paul, Minnesota 55101 -1998. WITNESSETH: WHEREAS, the MHFA, under the provisions of Minn. Stat. §474A.061 Subd. 2a (1993 suppl.), is authorized to issue qualified mortgage bonds, as such.,term is used in the Internal Revenue Code of 1986, as amended through the date of this agreement, on behalf of the City, and it has issued, or will issue, such bonds on the behalf thereof; and WHEREAS, the MHFA has implemented the Minnesota Housing Finance Agency Minnesota Cities Participation Program (hereinafter referred to as the "Program "), and is using, or will use, the proceeds from the issuance of such bonds to fund the Program; and WHEREAS, the City has requested and received a set -aside of funds from the Program; and WHEREAS, the City wishes to obtain a commitment by MHFA to purchase mortgage notes and mortgages (hereinafter referred to as "Mortgages ") which will be originated by a lender or lenders which meet MHFA requirements for participation in programs funded by qualified mortgage bonds, designated by the City (hereinafter cumulatively referred to as the "Lender'); and x WHEREAS, Mortgages to be purchased by the MHFA pursuant to the commitment requested by the City must only be for residences located within a geographic area to be established and designated by the City; and WHEREAS, the MHFA is willing to issue a commitment wherein it will agree to purchase Mortgages which are (i) originated by the Lender, (ii) reviewed, when required by the MHFA, in its sole option and discretion, by an entity to be designated by the MHFA (hereinafter referred to as the "File Reviewer "), and (iii) are in accordance with the terms and conditions of this Agreement, the Program, and a procedural manual to be supplied by the MHFA (hereinafter referred to as the "Procedural Manual "), the provisions of which are hereby incorporated by reference into this Agreement as if set forth in full herein; and WHEREAS, MHFA is willing to issue to the Lender a commitment under this Agreement, after it has been fully executed by all of the parties hereto (the fully executed document is hereinafter referred to as the "Program Commitment Agreement "), to purchase Mortgages originated by the Lender in accordance with the terms set forth hereinbelow, the provisions of the Program and Procedural Manual, and the terms of any other agreement entered into between the MHFA and the Lender. NOW, THEREFORE, in consideration of the covenants hereinafter contained and the mutual benefits to be derived therefrom, the parties hereto do hereby agree as follows: 1. City Requirements. All Mortgages submitted to the MHFA for purchase under the Program must comply with all of the requirements of the Program, and all of the requirements and provisions contained in the Procedural Manual and the Program Commitment Agreement. 2. Commitment and Commitment Amount. The City hereby applies for a commitment by MHFA to purchase Mortgages which (i) have been originated by the Lender, (ii) have been reviewed and approved, where applicable, by the File Reviewer, and (iii) meet the requirements of and are made in accordance with the provisions of the Program Commitment Agreement, the Program, and the Procedural Manual; and the MHFA, by accepting this Program Application - Commitment Agreement, commits to the purchase of such Mortgages in the aggregate principal amount (hereinafter referred to as the "Commitment Amount ") set forth hereinbelow. All Mortgages to be purchased by the MHFA pursuant to the Program Commitment Agreement shall be only for property which, and borrowers who, satisfy the requirements and provisions of the Program Commitment Agreement, the Program, and the Procedural Manual. the City acknowledges that the commitment herein applied for shall be effective only upon the approval thereof by MHFA at the place provided for hereinbelow, and the delivery of a copy of the same by MHFA to the City, which approved application shall constitute the Program Commitment Agreement. City Participation Program Fomi 94 -1 1 (Ver - 5/3/94) 3. Variance in Commitment Amount. A variance of Fifteen Thousand and No /100 Dollars ($15,000.00) in the total principal amount of Mortgages purchased under the Program Commitment Agreement, above or below the Commitment Amount, shall be deemed by the MHFA to constitute compliance with the Program Commitment Agreement. 4. Commencement of Activity. Upon the acceptance, execution, and delivery of the Program Commitment Agreement by MHFA to the City, the City shall select and designate Lender, and shall have Lender enter into and execute a Lender Application- Commitment Agreement in a form to be supplied by the MHFA. Lenders must meet MHFA requirements for participation in programs funded by qualified mortgage bonds. 5. Commitment Term. The term of the Program Commitment Agreement and the City's participation in the Program (hereinafter referred to as the "Commitment Tenn ") shall commence on a date to be selected and specified by the MHFA, and shall continue for a period of time to be established by the MHFA, in its sole option and discretion, provided, however, such time period shall not be less than Six (6) months. The MHFA shall transmit a written notification to the City of the date on which the Commitment Term shall commence. The Program Commitment Agreement, and the City's participation in the Program, shall automatically terminate, without the need for any action by either party hereto, at the end of the Commitment Term. 6. Set -Aside Term. The Commitment Amount shall be set -aside and held by the MHFA for the sole use by the City for a period of time to be established by the MHFA, in its sole option and discretion, provided, however, such time period shall not be less than Four (4) months (hereinafter referred to as the "Set -Aside Term ") commencing on a date to be selected and specified by the MHFA. The MHFA shall transmit a written notification to the City of the date on which the Set -Aside Term shall commence. Any portion of the Commitment Amount not reserved for the purchase of qualifying Mortgages as of the end of the Set -Aside Term shall be cancelled and returned to the MHFA for redistribution under the Program in accordance with the provisions contained in the Procedural Manual. In addition, any portion of the Commitment Amount reserved for Mortgages which are not delivered to the MHFA for purchase within the time period delineated in the Procedural Manual for such purchase, shall be cancelled and returned to the MHFA for redistribution under the Program, and any funds contained in the Program at the end of the Commitment Term shall become funds of the MHFA, and transferred to whatever program the MHFA, in its sole option and discretion, may designate. 7. Commitment Fees. No commitment fee shall be payable by the City for the commitment by the MHFA to purchase qualifying Mortgages. 8. Purchase Price. The purchase price of each' Mortgage to be purchased by MHFA hereunder shall be as set forth in the Procedural Manual. 9. Mortgage Terms. The interest rate for all Mortgages shall be set from time to time by the MHFA, at its sole option and discretion, by way of a written statement to the City and the Lender; provided, however, any change in interest rate shall only apply to Mortgages for which an individual commitment is issued after the City and the Lender have received such notification of interest rate change. Mortgages shall meet all requirements of the Program, and those set forth in the Program Commitment Agreement, the Procedural Manual, and either the Originating Lender Application- Commitment Agreement or the Direct Seller Application- Commitment Agreement, whichever is applicable. 10. Area Limitation. The City hereby specifically agrees that the MHFA shall, pursuant to the Program Commitment Agreement, be required to purchase only those Mortgages which are for residences located within a geographic area to be established and designated by the City. 11. Warranties. The City hereby warrants to MHFA that, upon approval and delivery of the Program Commitment Agreement by MHFA and the subsequent purchase by and delivery of Mortgages to MHFA pursuant thereto, all such Mortgages will have been made in compliance with, and will be in full compliance with, the terms and conditions contained in the Program Commitment Agreement, the Program, and the Procedural Manual, and all warranties set forth in the Procedural Manual are adopted and made by the City, and shall be applicable to each such Mortgage. 12. Servicing. The servicing of Mortgages shall be the sole responsibility of MHFA, or of those servicing institutions which MHFA may designate in its sole option and discretion. 13. Remedies. Time is of the essence hereof. In the event that the City defaults in the observance or performance of any covenant or condition in the Program Commitment Agreement or Procedural Manual, or in the event that any warranty made by the City with respect to any Mortgage is found to be untrue, then the MHFA shall be entitled to all remedies at law or in equity including, but not limited to; (i) the right to rescind acceptance of the Program Commitment Agreement, (ii) the right to seek equitable relief by way of injunction (mandatory or prohibitory) to City Participation Program Form 94 -1 2 (Ver - 513/94) prevent the breach or threatened breach of any of the provisions of the Program Commitment Agreement, or to enforce the performance thereof, (iii) the right to seek damages, including consequential damages, arising by virtue of the MHFA's sale of its debt securities in reliance on the City's observance and performance of the provisions of the Program Commitment Agreement, and (iv) the right to terminate the Program Commitment Agreement, and upon such termination the City shall have no further rights pursuant hereto, provided, however, that such termination shall not diminish MHFA's rights specified in the Program Commitment Agreement and in the Procedural Manual. All such remedies shall be cumulative, and the exercise by the MHFA of any one or more of them shall not in anyway alter or diminish the MHFA's right to any other remedy provided herein or by law. 14. Contract Documents. All Mortgage transactions between the City and the MHFA pursuant to the Program Commitment Agreement are on a contractual basis. The contract in each instance consisting of the Program Commitment Agreement and the provisions and requirements contained in the Procedural Manual, with all amendments and supplements thereto in any form in effect as of the date of the MHFA's acceptance of the Program Commitment Agreement. 15. Assignment. Neither this Program Application- Commitment Agreement, the Program Commitment Agreement, nor any interest therein is assignable or transferable by the City, or by operation of law, without the prior written consent of the MHFA. 16. Paragraph Captions and Program Headings. The captions and headings of the d hall not used to interpret or define of this A an s be paragraphs gTe ement are for convenience only, rP the provisions thereof. 17. Applicable Law. The Program Commitment Agreement is made and entered into in the State of Minnesota, and all questions relating to the validity, construction, performance and enforcement hereof shall be governed by the laws of the State of Minnesota. 18. Agreement Conditional Upon MHFA Approval. The Program Commitment Agreement shall be a binding obligation of the MHFA upon its execution by the MHFA and delivery PY of a co of the same to the City. In the event that this Program Application- Commitment Agreement is not, for any reason, so executed and delivered by the MHFA on or before the 15th 4 ' i n day of June 199 it shall be null and void and of o force or effect. Y 19. Issuance of Bonds. The City does hereby authorize the MHFA to issue, on behalf of the City, qualified mortgage bonds, as such term is used in the Internal Revenue Code of 1986, in an amount equal to the Commitment Amount, and the MHFA agrees to so issue such bonds if and when federal law authorizes and the MHFA deems it is economically feasible to do so. (THE REMAINING PORTION OF THIS PAGE IS INTENTIONALLY LEFT BLANK) I City Participation Program Form 94 -1 3 (Ver - 5/3/94) ' IN WITNESS WHEREOF, the City has set its hand this _ day of 1994. CITY: BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY By: (Signature of Authorized Officer) (Printed or Typewritten Name of Authorized Officer) REQUESTED COMMITMENT AMOUNT $4,000, 000 MHFA APPROVAL MHFA hereby accepts the above Program Application- Commitment Agreement and approves and grants the following: APPROVED COMMITMENT AMOUNT $1.099.041 MINNESOTA HOUSING FINANCE AGENCY By: Michael Haley Its: Director of Home Mortgage Programs Signed this _ day of May, 1994. SUMMARY (To be completed by MHFA) City's requested commitment amount $4,000.000 Commitment Amount granted by MHFA $1.099.041 City Participation Program Form 941 4 (Ver - 5/3/94) Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF PROGRAM APPLICATION COMMITMENT AGREEMENT FOR THE 1994 MINNESOTA HOUSING FINANCE AGENCY'S MINNESOTA CITY PARTICIPATION PROGRAM WHEREAS, the Brooklyn Center Economic Development Authority has submitted an application for the Minnesota Housing Finance Agency's Minnesota City Participation Program to provide mortgage funds for qualified first time home buyers in the City of Brooklyn Center; and WHEREAS, the Minnesota Housing Finance Agency has granted an allocation under the Minnesota City Participation Program to the Brooklyn Center Economic Development Authority in the amount of $1,099,041; and WHEREAS the Program Application Commitment Agreement g PP �' sets forth the terms and conditions of the Minnesota City Participation Program for the Brooklyn Center Economic Development Authority and the Minnesota Housing Finance Agency; and WHEREAS, execution of the Program Application Commitment Agreement by the Brooklyn Center Economic Development Authority is a requirement to participate in the Minnesota City Participation Program. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority that it hereby authorizes its President and Executive Director to execute the Program Application Commitment Agreement for the 1994 Minnesota City Participation Program on behalf of the Brooklyn Center Economic Development Authority. Date Todd Paulson, 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. Council Meeting Date 5/23194 Agenda Item Numbe REQUEST FOR COUNCIL CONSIDERATION ITEM DESCREMON: RESOLUTION AUTHORIZING EXECUTION OF MORTGAGE REVENUE BOND ALLOTMENT AGREEMENT FOR THE 1994 NUNNESOTA HOUSING FINANCE AGENCY'S NUNNF.SOTA CITY PARTICIPATION PROGRAM ***************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** DEPT. APPROVAL: Tom B litz, Community Development pecialist MANAGER'S REVIEW/RECONIlVUMNDATION: No comments to supplement this report . Comments below /attached • SUMMARY EXPLANATION: (supplemental sheets attached X ) Execution of a revenue bond Allotment Agreement is required of all cities participating in the 1994 Minnesota City Participation Program (MCPP). The Allotment Agreement specifies the allocation of mortgage revenue bonds allotted to each city participating in the program. For the 1994 MCPP, Brooklyn Center has been allotted $1,099,041. A one percent (1 %) application deposit is required to be submitted with the Allotment Agreement. The 1 % application fee, which totals $10,990.41, will be returned in full to the EDA upon sale of the bonds by the MHFA. In addition to the application deposit which will be returned, an additional $220 is required as a processing fee which is paid to the Department of Finance for administrative expenses incurred by that department. This fee is non - refundable and is charged to all cities participating in the program. Execution of the Allotment Agreement is required to participate in the program. A copy of the Allotment Agreement is included with this memorandum. RECOMMENDATION: • Staff recommends approval of Resolution Authorizing Execution of Mortgage Revenue Bond Allotment Agreement for the 1994 Minnesota Housing Finance Agency's Minnesota City Participation Program. MORTGAGE REVENUE BOND ALLOTMENT AGREEMENT for 1994 THIS AGREEMENT shall have an effective date of the _ day of , 1994, and is made and entered into by and between the Minnesota Housing Finance Agency, a public body corporate and politic of the State of Minnesota (hereinafter referred to as the "MHFA "), and the entities (hereinafter individually referred to as a "Recipient ", and collectively referred to as the "Recipients ") identified in Exhibit A which is attached hereto and incorporated herein by reference. WITNESSETH: WHEREAS, Section 146 of the Internal Revenue Code of 1986, as amended, (hereinafter referred to as the "IRC ") establishes an annual volume cap for the issuance of private activity bonds; and WHEREAS, IRC §146(e) allows States to enact legislation to allot that State's annual volume cap for private activity bonds amongst different entities located within that State; and WHEREAS, the allocation of annual volume cap for private activity bonds amongst different entities located within the State of Minnesota is vested in the Commissioner of Finance for the State of Minnesota (hereinafter referred to as the "Commissioner of Finance "); and WHEREAS, the State of Minnesota, pursuant to the authority granted under IRC §146(e), enacted Minn. Stat. §474A.061 Subd. 2a (1993 Suppl.), which such statute establishes a procedure for the allotment of qualified mortgage bonds (hereinafter referred to as "Qualified Mortgage Bonds "), as such term is used in IRC §143(a); and WHEREAS, each Recipient has, pursuant to the requirements contained in Minn. Stat. §474A.061 Subd. 2a (a) (1993 Suppl.) submitted an application to the MHFA for an allotment of Qualified Mortgage Bonds; and WHEREAS, Minn. Stat. §474A.061 Subd. 2a (b) (1993 Suppl.) requires that the MHFA and the Recipients must, before the MHFA can forward an allotment of Qualified Mortgage Bonds to the Commissioner of Finance, negotiate the terms of and enter into an agreement regarding the allotment of Qualified Mortgage Bonds amongst the Recipients; and WHEREAS, the MHFA and the Recipients wish to enter into an agreement regarding the allotment of Qualified Mortgage Bonds; and WHEREAS, the MHFA and the Recipients have negotiated and agreed to the terms which are to be included in such agreement regarding the allotment of Qualified Mortgage Bonds amongst the Recipients. NOW, THEREFORE, the P arties hereto, based upon the mutual covenants and warranties contained herein, do hereby agree as follows: 1. Amount of Qualified Mortgage Bonds to be Allotted. The total amount of authority for the issuance of Qualified Mortgage Bonds (hereinafter referred to as the "QMB Authority") available to be allotted, and to actually be allotted, pursuant to this Allotment Agreement is Thirty -Eight Million One Hundred Fifty -Six Thousand and No /100 Dollars ($38,156,000.00). 2. Applications. Each Recipient has submitted (i) an application to the MHFA for an allotment of Qualified Mortgage Bonds which meets the requirements specified in Minn. Stat. §474A.061 subd. 2a (1993 Suppl.). MHFA Qualified Mortgage Bonds 1 (Alltmnt Agrmnt (94/05/02)) Allotment Agreement 3. Allotment. The QMB Authority is allotted to the Recipients in the amounts specified and delineated in Exhibit B attached hereto and incorporated herein by reference, and such amount is allocated in accordance with the provisions contained in Minn. Stat. §474A.061 subd. 2a (1993 Suppl.). 4. Application Deposit and Application Fee. The MHFA shall transmit to each individual Recipient written notice of the amount of application deposit and application fee which state law requires such Recipient submit to the MHFA, and each such Recipient shall submit such application de i pos t and application fee in accordance with the instructions contained in such written notice. 5. Forward to Commissioner. The MHFA shall, in accordance with the provisions contained in Minn. Stat. §474.061 Subd. 2a (b) (1993 Suppl.) forward this Agreement to the Commissioner of Finance, and upon receipt of the applicable application deposit shall also forward such deposit to the Commissioner of Finance. (THE REMAINING PORTION OF THIS PAGE IS INTENTIONALLY LEFT BLANK) i MHFA Qualified Mortgage Bonds 2 (Alltmnt Agrmnt (94/05/0z))., Allotment Agreement THIS ALLOTMENT AGREEMENT was executed by the Minnesota Housing Finance Agency on the — day of May, 1994. MINNESOTA HOUSING FINANCE AGENCY By: Michael Haley Its: Director of Home Mortgag.e Programs .i MHFA Qualified Mortgage Bonds 3 (Alltmnt Agrmnt (94/05/02)) Allotment Agreement Exhibit A List of Recipients Anoka Housing and Redevelopment Authority City of Audubon Housing and Redevelopment Authority of Austin, Minnesota City of Barnesville City of Battle Lake Beltrami County Bemidji Economic Development Authority Brainerd Housing and Redevelopment Authority Brooklyn Center Economic Development Authority City of Brooklyn Park City of Browns Valley Buffalo Housing and Redevelopment Authority Chisago County Housing and Redevelopment Authority Clearwater County Housing and Redevelopment Authority of Columbia Heights Crystal Economic Development Authority City of Detroit Lakes City of Dilworth Housing and Redevelopment Authority of Dodge Center Housing and Redevelopment Authority of Douglas County City of Duluth City of Evansville City of Fergus Falls Fridley Housing and Redevelopment Authority City of Gaylord Housing and Redevelopment Authority City of Glencoe City of Glyndon Golden Valley Housing and Redevelopment Authority City of Granada Grant County Housing and Redevelopment Authority City of Hopkins Hubbard County City of Jackson Lake of the Woods County Mankato Housing and Redevelopment Authority City of Maple Grove City of Maple Lake City of Minnetonka City of Moorhead New Hope Economic Development Authority City of New York Mills City of Northfield Housing and Redevelopment Authority Ci ty of Owatonna City of Perham Pope County Rice County Housing and Redevelopment Authority Housing and Redevelopment Authority in and for the City of Richfield Robbinsdale Economic Development Authority Rochester Housing Authority A South Central Multi County Housing and Redevelopment Authority St. Cloud Housing and Redevelopment Authority City of St. James Stearns County Housing and Redevelopment Authority Stevens County Swift County Housing and Redevelopment Authority City of Truman City of Wheaton City of Winsted Winthrop Economic Development Authority Wright County MHFA Qualified Mortgage Bonds 1 (Alltmnt Agrmnt (94/05/02)) Exhibit A to Allotment Agreement Exhibit B Allotment Amount of Narne of Recipient Allotment Anoka Housung and Redcvc,cpment Au.honty $787,140 City of Audubon $250,000 Housin^ and Rcdevelopment AL&,orn;v of Austin . Minncsctz r $824,569 City of Ba resviiie $500,000 City of Ba Lake $250,000 Beltrami County $540,000 Bemidji Economic Development Authority $724,760 Brainerd Housing and Redevelopment Authority $500,000 Brooklyn n Center Economic omic )cvehrment Authority $1,099,041 City of Brooklyn Park $974,281 City of Brc,ti;is Valley $250,000 Buffalo Housing and Redevelopment Authority $787,140 Chisago County Housing and Redevelopment Authority $849,521 Clearwater County $252,000 Housing and Redevelopment Authority of Columbia Heights $849,521 Crystal Economic Development Authority $749,712 City of Detroit Lakes $500,000 City of Dilworth $500,000 Housing and Redevelopment Authority of Dodge Center $712,284 Housing and Redevelopment Authority of Douglas County $849,521 City of Duluth $1,099,041 City of Evansville $250,000 City of Fergus Falls $712,284 Fridley Housing and Redevelop-ment Authority $787,140 City of Gaylord Housing and Redevelopment Authority $432,000 City of Glen coo $600,000 City of Giy adcn $500,000 Golden Valley ousing and Redevelop eat Authcrity $750,000 City of Granada $288,000 Grant County housing and Redevelopment Authority $500,000 City f Ho "' tY F 24 $7 ,760 Hubbard County $450,000 City of Jackson $250,000 Lake of the Woods County $250,000 Mankato Housing and Redevelopment Aukhority $625,000 City of Ma; e Grove $500,000 City of Maple Lake $300,000 City cf Minretenka $787,140 City of Vccrhead $849,521 New How Economic eve'.opment Aut ,ont $849,521 City of New York Miils $250,000 City of Non.^ field Housing and Redevelop, ,ent Authcrir,' $405,000 City of Owatonna $706,046 City of Perham $420,000 Pope Counts $500,000 Rice Coun Housing and Redevelopment ,authority $911,901 Housing an�f Redevelopment Authority i, and for the City of Richfield $974,281 Robbinsdale Economic Development Authority $1,099,041 Rochesterllousing Authority $1,099,041 South Central Multi County Housing and Redevelopment Aut; ority $1,099,041 ., :_� ; d c ^r e ' A onty $1,099,041 St. Cloud ;.,,u,,�,� and e,.eve', r ;�, u, City of S,. James $684.587 Steams Ccur.`y Housing and RedeveieN n, AuthoritJ $1,099,041 Stevens County $500,000 Swift County Housing and Redevelopment Authority $250,000 City of Truman $474,000 City of Wheaton $500 City of Winsted $496,800 Winthrop Economic Development Author.,y $360,000 Wright County $974,281 b,F �.4 Qualiticd � {,r,g,2�� Ronea Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF MORTGAGE REVENUE BOND ALLOTMENT AGREEMENT FOR THE 1994 MINNESOTA HOUSING FINANCE AGENCY'S MINNESOTA CITY PARTICIPATION PROGRAM WHEREAS, the Brooklyn Center Economic Development Authority has elected to participate in the 1994 Minnesota Housing Finance Agency's Minnesota City Participation Program; and WHEREAS, the Allotment Agreement for the 1994 Minnesota City Participation Program divides $38,156,000 in mortgage revenue bonds among sixty (60) cities participating in the Minnesota City Participation Program; and WHEREAS, the Brooklyn Center Economic Development Authority has been allocated $1,099,041 in mortgage revenue bonds for mortgages qualifying under the Minnesota City Participation Program; and WHEREAS, participation in the Minnesota City Participation Program requires the Brooklyn Center Economic Development Authority to submit a deposit fee in the amount of one percent (1%) of the total allocation, which will be returned to the Brooklyn Center Economic Development Authority upon issuance of the mortgage bonds under the Minnesota City Participation Program; and WHEREAS, the Minnesota Department of Finance requires jurisdictions participating in the Minnesota City Participation Program to pay a processing fee amounting to $220.00 for the Brooklyn Center Economic Development Authority. NOW, THEREFORE, BE IT RESOLVED by the Brooklyn Center Economic Development Authority as follows: 1. The Brooklyn Center Economic Development Authority hereby authorizes its President and Executive Director to execute the Mortgage Revenue Bond Allotment Agreement for the 1994 Minnesota City Participation Program. 2. The Brooklyn Center Economic Development Authority authorizes payment of a deposit fee in the amount of $10,990.41 to the Minnesota Department of Finance. 3. The Brooklyn Center Economic Development Authority authorizes payment of a processing fee in the amount of $220.00 to the Minnesota Department of Finance. EDA Resolution No. Date Todd Paulson, 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.