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HomeMy WebLinkAbout1993 05-24 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER MAY 24, 1993 (following adjournment of City Council meeting) 7 p.m. 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. EDA Minutes - May 10, 1993 - Special Session 5. Public Hearing: (8:30 p.m.) -Sale of Property Located at 6730 Perry Avenue North in Brooklyn Center to Twin Cities Habitat for Humanity 1. Resolution Authorizin g g Execution of Purchase Agreement for Sale of 6730 Perry Avenue North to Twin Cities Habitat for Humanity 6. Resolutions: • a. Accepting a Request foz Proposal and Awarding a Contract for Management Study with the Earle Brown Heritage Center • b. Authorizing Execution of Program Application- Commitment Agreement for the 1993 Minnesota Housing Finance Agency's Minnesota City Participation Program • c. Authorizing Execution of Mortgage Revenue Bond Allotment Agreement for the 1993 Minnesota Housing Finance Agency Minnesota City Participation Program • d. Accepting Quotations and Awarding Contract for Demolition of 6601 Bryant Avenue North • e. Accepting Quotations and Awarding Contract for Demolition of 419 - 69th Avenue North 7. Adjournment CITY OF BROOKLYN CENTER Coamcil Meeting Date May 24, 1993 Agenda Item Numbe REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: EDA MINUTES - MAY 10, 1993 - SPECIAL WORK SESSION DEPT. APPRO Brad ff An, Director of Community D opment .mot * *� * ** MANAGER'S REVIEW/RECONEWENDATION: i No comments to supplement this report Comments below /attached • ******************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** SUNMARY EXPLANATION: (supplemental sheets attached ) r RECOMMENDED CITY COUNCIL ACTION y�- MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF T HE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE S TATE OF MINNESOTA SPECIAL SESSION MAY 10, 1993 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in regular session and was called to order by President Todd Paulson at 10:12 p.m. r ROLL CA President Todd Paulson, Commissioners Celia Scott, Dave Rosene, and Kristen Mann. Also present were City Manager Gerald Splinter, Director of Community Development Bract Hoffman, Community Development Specialist Tom Bublitz, City Attorney Charlie LeFeverc, and Council Secretary Nancy Berg. APPROVAL OF MINUTE APRIL 26, 1993 - SPECIAL SESSION There was a motion by CnmmissionQr Scutt and seconded by Commissioner Rosene to approve the minutes of the April 26, 1993, EDA meeting as printed. The motion passed unanimously. P,ESOLUTIONS The City Manager presented a Resolution Authorizing the Acquisition of Certain Real Property Within the City of Brooklyn Center and Establishing Offer of Just Compensation for Said Property Located at 5305 Bryant Avenue North in Brooklyn Center. The Community Development Specialist explained the acquisition of the property had been reviewed as a discussion item by the EDA at its March 22, 1993, meeting, and [lie EDA had approved a motion to authorize staff to prepare a formal appraisal on the property based on the initial inspection by the City's Building Official regarding the condition of tthc property. 5/10/93 - 1 RESOLUTION NO. 93 -15 C onlinissioner Scott introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING THE ACQUISITION OF CERTAIN REAL PROPERTY WITHIN THE CITY OF BROOKLYN CENTER AND ESTABLISHING OFFER OF JUST COMPENSATION FOR SAID PROPERTY LOCATED AT 5305 BRYANT AVENUE NORTH IN BROOKLYN CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Rosene, and the motion passed unanimously. The City Manager presented a Resolution Accepting Bids and Awarding Contract for nemolition of 6715, 6717, 6719, and 672.1 Humboldt Avenue North In Brooklyn Ccritcr, Minnesota. Commissioner Scott inquired if the bid included removal of all debris. The City Manager answered ycs. RESOLUTION NO. 93 -16 Commissioner Scott introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING BIDS AND AWARDING CONTRACT FOR DFMOLITION OF 6715, 6717, 6719, AND 6721 RUMBOLUT AVENUE NORTH IN BROOKLYN CENTER, MINNESOTA The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Rosene, and the motion passed unanimously. ADJOURNMENT There was a motion by Commissioner Rosene and seconded by Commissioner Mann to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 10:20 p.m. Todd Paulson, President Recorded and transcribed by: Nancy Berg TimeSaver Off Site Secretarial 5/10/93 i CITY OF BROOKLYN CENTER Council Meeting Date Mav za, 1993 Agenda Item Numbs 6 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION AUTHORIZING EXECUTION OF PURCHASE AGREEMENT FOR THE SALE OF 6730 PERRY AVENUE NORTH TO TWIN CITIES HABITAT FOR HUMANITY DEPT. APPROVAL: _ s• Tom Bublitz, Community Development Specialist MANAGER'S REVIEW/RECOMMENDATION: No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached )Les At the April 26, 1993 EDA meeting, the EDA directed staff to provide for a public hearing regarding the sale of the single-family lot at 6730 Pe Avenue North to Twin Cities Habitat for g g g Y �3' Humanity and to direct the Executive Director of the EDA to negotiate a purchase agreement for the sale of the property. The purchase price for the lot would be in accordance with Habitat for Humanity policy, which is to purchase lots at the price of $1.00. The public hearing for the sale of the property to Habitat for Humanity was published in the City's legal newspaper on May 5, 1993, and has been scheduled for 8:30 p.m. on May 24, 1993. The resolution presented to the EDA board this evening would approve the terms of the purchase agreement for the sale of the property to Twin Cities Habitat for Humanity. Twin Cities Habitat for Humanity will be required to construct a single - family home with garage on the site with the design of the single - family residence to be approved by the EDA board prior to construction. Additionally, Twin Cities Habitat for Humanity is required to sell the single - family residence to a person or persons of low and moderate income, as defined by an income of not greater than eighty percent (80 %) of the Minneapolis /St. Paul metropolitan MSA median household income, as most recently approved by the Department of Housing and Urban Development for purposes of establishing Community Development Block Grant (CDBG) program income limits. Representatives from Twin Cities Habitat for Humanity will be present at Monday's meeting to respond to any questions at the public hearing. Additionally, representatives of Twin Cities Habitat for Humanity have personally attempted to make contact with all neighbors in the immediate area of the property at 6730 Perry Avenue to inform them of the plans for development of the Habitat home on the site. Additionally, the representatives of Habitat for Humanity have made residents in the area aware of the May 24, 1993 public hearing. Representatives of Twin Cities Habitat for Humanity will also have available at Monday's meeting prototype plans for the single - family residence to be constructed at the 6730 Perry site. RECOMMENDATIONS Staff recommends approval of Resolution Authorizing Execution of Purchase Agreement for Sale of 6730 Perry Avenue North to Twin Cities Habitat for Humanity. • S� Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION EXECUTION OF PURCHASE AGREEMENT FOR SALE OF 6730 PERRY AVENUE NORTH TO TWIN CITIES HABITAT FOR HUMANITY WHEREAS, Minnesota Statutes Section 469.029, Subd. 2, requires a public hearing for the sale of land by the Economic Development Authority in and for the City of Brooklyn Center (EDA); and WHEREAS, EDA resolution 93 -13 provided for a public hearing regarding the sale of land owned by the EDA to Twin Cities Habitat for Humanity and legally described as Lot 3, Block 3,_ Marstan's Place Addition, according to the plat thereof on file and of record in the Office of the County Recorder in and for the County of Hennepin, State of Minnesota (6730 Perry Avenue North) (the "property "); and WHEREAS, EDA Resolution 93 - 13 authorized the EDA Executive Director to negotiate a purchase agreement for the sale of the property to Twin Cities Habitat for Humanity for $1.00; and WHEREAS, the Brooklyn Center EDA has held a public hearing regarding the sale of the property pursuant to Minnesota Statutes Section 469.029, Subd. 2; and WHEREAS, the EDA Executive Director has prepared a purchase agreement for the sale of the property to Twin Cities Habitat for Humanity. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center that the terms and conditions of the purchase agreement for the sale of the property to Twin Cities Habitat for Humanity are hereby approved. 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. PURCHASE AGREEMENT THIS AGREEMENT, made and entered into this day of , 1993, by and between the ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER, a Minnesota municipal corporation with offices at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota 55430 (the "Seller ") and TWIN CITIES HABITAT FOR HUMANITY (the "Buyer "). WITNESSETH: 1. Description of Land Sold Seller, in consideration of the covenants and agreements of Buyer hereinafter contained, hereby sells and agrees to convey unto Buyer, or its successors and assigns, by quit claim deed, upon the prompt and full performance by Buyer of its part of this Agreement, the tract of land lying and being in the County of Hennepin, legally described in Exhibit A attached hereto (hereinafter "land sold herein" or the "Property "). - 2. Purchase Price Buyer, in consideration of the covenants and agreements of Seller contained herein, hereby agrees to purchase the Property and agrees to pay to Seller as and for the purchase price the sum of One Dollar ($1.00) (the "Purchase Price "). The Purchase Price shall be payable by Buyer to Seller at closing. 3. Taxes and Special Assessments Property is exempt from real estate taxes payable in the year 1993. There are no special assessments currently levied against the Property. Buyer shall pay (and hereby assumes) all real estate taxes and installments of special assessments relating to the land sold herein which become due and payable after the date of closing. Seller warrants that the real estate taxes and installments of special assessments which were due and payable in the years preceding the year in which this contract is dated are paid in full. Sewer availability charges (SAC) attributable to the Property shall be paid by Seller. 4. Right of Entry Buyer shall have the right, prior to the Closing Date, to enter upon the land sold herein for the purpose of taking soil tests, borings, making surveys and maps and performing preliminary investigative work in connection with the Buyer's purchase of land sold herein, provided, however, that Buyer shall indemnify and hold harmless Seller from any mechanic liens or any claim arising out of such preliminary development work by Buyer. -1- 5. Closing Date The Closing Date shall be held on or before July 30, 1993. The closing shall take place at the offices of Holmes and Graven, Chartered, 470 Pillsbury Center, Minneapolis, Minnesota 55402. At the closing, Seller and Buyer shall deliver to one another the instruments and funds specified herein. Possession of the land sold herein shall, subject to the terms of Paragraph 4 hereof, be delivered to Buyer on the Closing Date. 6. Title Unless waived by Buyer, performance by Buyer hereunder shall be expressly contingent upon the Buyer being able to obtain, at his own expense, an Owners Title Policy in the amount of the Purchase Price, or other evidence of title satisfactory to Buyer, showing good and marketable title in Seller. Buyer shall be allowed ten (10) days from the date of this Agreement to investigate the state of title to the Property and to make any objections thereto, said objections to be made in writing or deemed to be waived. Pending cure of the objections, the payments hereunder required shall be postponed, but upon cure of the objection and within five (5) days after written notice, Buyer shall perform as provided in this Agreement. If the objections to title are not cured within one hundred and twenty (120) days from the date of written objection thereto as above provided, this Agreement shall, at the option of Buyer, be void and neither party shall be liable for damages hereunder to the other party; but if the objections shall be cured within said time, and Buyer shall default in any of the agreements and continue to default for a period of five (5) days after written demand by Seller upon Buyer setting forth the specific default of Buyer hereunder, then, and in that case, Seller may terminate this Agreement. 7. Warranties of Seller Seller represents and warrants, which representations of warranty shall be true as of the Closing Date and shall survive the Closing (and shall be a condition precedent of the obligations of Buyer hereunder) as follows: (a) There is no environmental litigation pending or threatened .against the Property. (b) The Property is served by a sanitary sewer system and municipal water system. Buyer acknowledges that except as foresaid, the Property is being sold as is without any representations or warranties. 8. Notices All notices provided herein shall be given in person or sent by United States Mail, postage paid, to the parties at the following addresses (or such other addresses as either party may, from time to time, designate in writing to the other): i s -2- If to Buyer, to: Mr. Stephen Seidel Executive Director Twin Cities Habitat for Humanity P.O. Box 7053 Minneapolis, MN 55407 -0053 If to Seller, to: Economic Development Authority In and For the City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 With copy to: Corrine Heine Holmes & Graven, Chartered 470 Pillsbury Center Minneapolis, MN 55402 Deposit in United States Mail of said notice on the date such notice is to be given, or earlier, shall be deemed timely and acceptable. 9. Successors and Assigns; No Merger The terms, covenants and conditions of this Purchase Agreement shall be binding upon and inure to the benefit of the successors and assigns of the respective parties hereto, and shall survive closing and shall not merge with any deed or other instrument of conveyance. Time is of the essence of all matters to be performed in this Agreement. 10. Documents to be Delivered at Closing The following documents shall be delivered at closing: By Seller: (1) A Quit Claim Deed. (2) A Seller's Affidavit, in standard form. (3) Owner's Duplicate Certificate of Title, if applicable. (4) Well Disclosure Certificate. By Buyer: (1) The Purchase Price. (2) A Certificate of Real Estate Value. (3) Affidavit of Purchaser of Registered Land, if applicable. 11. Remedies Upon Default In the event of default by Seller of any terms contained in this Agreement, Buyer shall have the right, at its option, to terminate this Agreement or to sue to enforce this Agreement by specific performance. In the event of default by Buyer, Seller shall have the right to terminate this Agreement as provided herein or by law, to enforce this Agreement by specific performance or to sue for damages. -3- 12. Design Approval Buyer shall not construct on the Property improvements which are not consistent with the design proposals for a detached single family residence approved by Seller. Prior to construction of any improvements on the Property, Buyer shall submit to Seller a design proposal for such improvements for approval by the Seller. Seller shall approve construction of such improvements only upon a determination, in the absolute and sole discretion of Seller, that the public interests would be served by construction of such improvements. No improvements shall be constructed on the Property which are not consistent with such approved design proposal. 13. Well Disclosure Statement Exhibit B attached hereto is a completed form of a Minnesota Well Disclosure Statement and is incorporated herein as if fully set forth herein. 14. Sale of Single Family Residence Purchaser shall sell the detached single family residence constructed on the Property only to a person or persons of low and moderate income within one year from the date of closing. Low and moderate income person or persons shall be defined by an income not greater than eighty percent (80 %) of the Minneapolis /St. Paul metropolitan MSA median household income as most recently approved by the Department of Housing and Urban Development for purposes of establishing Community Development Block Grant (CDBG) program income limits. IN WITNESS WHEREOF, Buyer and Seller have executed this Purchase Agreement on the date and year first above written. TWIN CITIES HABITAT FOR HUMANITY By Its By Its -4- ECONOMIC DEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER, A Minnesota Municipal Corporation By Its President By Its Executive Director STATE OF MINNESOTA) )ss. COUNTY OF HENNEPIN) The foregoing instrument was acknowledged before me this day of 1993, by and the and respectively, of Twin Cities Habitat for Humanity, a nonprofit organization. Notary Public STATE OF MINNESOTA) )ss. COUNTY OF HENNEPIN) The foregoing instrument was acknowledged before me this _ day of , 1993, by and , the President and Executive Director, respectively, of the Economic Development Authority in and for the City of Brooklyn Center, a Minnesota municipal corporation. Notary Public -5- EXHIBIT A LEGAL DESCRIPTION Lot 3, Block 3, Marstan Place, according to the plat thereof on file or of record in the Office of Registrar of Titles in and for the County of Hennnepin, State of Minnesota. —6— EXHIBIT B AMFOrm NO. 1510 -W Mlmwaawell Djwc stet. t(Nwim) Yttlw.0a.,. Ln.t Fame MINNESOTA WELL DISCLOSURE STATEMENT Minnesota Law requires that before signing an agreement to sell or transfer real property after June 30, 1990, the seller must disclose information in writing to the buyer about the status and location of all known wells on the property. This requirement is satisfied by delivering to the buyer either a statement by the seller that the seller does not know of any wells on the property, or a disclosure statement indicating the legal description and county and a map showing the location of each well. In the disclosure statement the seller must indicate, for each well, whether the well is in use, not in use or sealed. A seller who fails to disclose the existence of a well at the time of sale and knew of, or had reason to know of, the existence of a well is liable to the buyer for costs relating to the sealing of the well and reasonable attorney fees for collection of costs from the seller, if the action is commenced within six years after the date the buyer closed the purchase of the real property where the well is located. Instructions for completion of this form are on the reverse side. 1. PROPERTY DESCRIPTION Street address: 6730 Perry Avenue North Brooklyn Center Hennepin Cit C— 2. LEGAL DESCRIPTION T.nr 1, Rlnrk 1, Marsran Place according to the plat thereof on file or of record in the Office of Registrar of Titles in and for the Countv of Hennepin, State of Minnesota 3. WELL DISCLOSURE STATEMENT (Check the appropriate box.) Q The seller certifies that the seller does not know of any wells on the above described real property. If this option is checked, then skip to the last line and sign and date this statement. ❑ The seller certifies that the following wells are located on the above described real property. MN. Unique Well Year of Well IN USE NOT IN SEALED Well No. Depth Const. Type USE Well 1 ❑ ❑ ❑ Well 2 ❑ ❑ ❑ Well 3 ❑ ❑ ❑ 4. SEALED WELL INFORMATION For each well designated as sealed above, complete this section. When was the well sealed? Who sealed the well? Was a Sealed Well Report filed with the Minnesota Department of Health? Yes No b. MAP Complete the attached map showing the location of each well on the real property. 6. CERTIFICATION BY SELLER I certify that the information provided above is accurate and complete to the best of my knowledge. B.IIr a ttl P.gretaaw L_ / U.0 4Yr D..IyW 11.p—"u- Dua CITY OF BROOKLYN CENTER Council Meeting Date May 24, 1993 Agenda Item Number 6 REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION ACCEPTING A REQUEST FOR PROPOSAL AND AWARDING A CONTRACT FOR MANAGEMENT STUDY WITH THE EARLE BROWN HERITAGE CENTER DEPT. APPROVAL: Brad Hoffman, Director of Community Development MANAGER'S REVIEWlRECONEWENDATION: • No comments to supplement this report . Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached ) Management study interviews are being conducted this Friday, May 21. Information will be provided on Monday evening with regard to the results of these interviews. CITY OF BROOKLYN CENTER Council Meeting Date May 2 1993 Agenda Item Number (D REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION AUTHORIZING EXECUTION OF PROGRAM APPLICATION - COMMITMENT AGREEMENT FOR THE 1993 MINNESOTA HOUSING FINANCE AGENCY'S MINNESOTA CITY PARTICIPATION PROGRAM DEPT. APPROVAL: d Tom Bublitz, Community Development Specialist 0�18& z", MANAGER'S REVIEW/RECOMMENDATION: .r • No comments to supplement this report . Comments below /attached SU EM ARY EXPLANATION: (supplemental sheets attached )Yes The City's allocation of mortgage revenue funds for the 1993 Minnesota City Participation Program (MCPP) will be $1,473,232, and will be set aside for exclusive use by the City of Brooklyn Center for a period of four (4) months at a specified interest rate. The interest rate will be set after the bond sale is completed by the Minnesota Housing Finance Agency (MHFA). After the four month period, the funds will then be set aside for an additional two (2) months and may be used by all cities participating in the 1993 program. Income limits for eligible homeowners in the 1993 MCPP are set at $39,680 adjusted gross income. The approximate adjusted income per household is determined by subtracting $1,000 for each household member who will live in the home from their current gross annual household income. For example, a family of three persons may have a gross annual household income of $42,680 and still qualify for the program. House price limits for the program have not been set at this date, however, last year the house price limits were set at $85,000 for an existing home and it is anticipated the house price limits will be very similar to last year's amounts. 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 sixty cities participating in the program. A copy of the Program Application - Commitment Agreement is included with this memorandum. RECOMMENDATION Staff recommends approval of the Resolution Authorizing Execution of Program Application- Commitment Agreement for the 1993 Minnesota Housing Finance Agency's Minnesota City Participation Program. • V i Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF PROGRAM APPLICATION - COMMITMENT AGREEMENT FOR THE 1993 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 $1,473,232; and WHEREAS, the Program Application Commitment Agreement 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 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. 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, City of Brooklyn Center, 6301 Shingle Creek Parkway, 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. Star. §474A.061 Subd. 2a (1992), 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, designated by the City (hereinafter cumulatively referred to as the "Lender "); and 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 'Review Contractor "), 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 Review Contractor, 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 Forth 93-1 1 (Va - 5/11193) r 3. Variance in Commitment Amount. A variance of Fifteen Thousand and Nof100 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. 5. Commitment Term. The term of the Program Commitment Agreement and the City's participation in the Program (hereinafter referred to as the "Commitment Term ") 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 dole 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 Ml IFA 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 MI IFA 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 Forth 93 -1 2 (Ver - 5111/93) 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 paragraphs of this Agreement are for convenience only, and shall not be used to interpret or define 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 of a copy 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 day of June, 1993, it shall be null and void and of no force or effect. 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) City Panicipation Program Forth 93 -1 3 (ver - 5/11193) IN WITNESS WHEREOF, the City has set its hand this _ day of 19 CITY: BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY By: (Signature of Authorized Officer) (Printed or Typewritten Name of Authorized Officer) REQUESTED COMMITMENT AMOUNT $3.500.000 MHFA APPROVAL MHFA hereby accepts the above Program Application- Commitment Agreement and approves and grants the following: APPROVED COMMITMENT AMOUNT $1.473.232 MINNESOTA HOUSING FINANCE AGENCY By: Its: Signed this _ day of 19_ SUMMARY (To be completed by MHFA) City's requested commitment amount $3.500.QOO Commitment Amount granted by MHFA $1.473.232 City Participation Program porn 93 -1 4 (Ver - 5/11/93) CITY OF BROOKLYN CENTER Council Meeting Date May 24, 1993 Agcn& Item Number REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: AUTHORIZING EXECUTION OF MORTGAGE REVENUE BOND ALLOTMENT AGREEMENT FOR THE 1993 MINNESOTA HOUSING FINANCE AGENCY'S MINNESOTA CITY PARTICIPATION PROGRAM DEPT. APPROVAL: Tom Bublitz, Community Development Specialist MANAGER'S REVIEW/RECON[MENDATION: • No comments to supplement this report . Comments below /attached SU EVIARY EXPLANATION: (supplemental sheets attached )Les At the April 12, 1993 EDA meeting, the EDA board authorized the submittal of an application for the 1993 Minnesota City Participation Program (MCPP), which is the first -time home buyer program offered to cities through the Minnesota Housing Finance Agency (MHFA). The Allotment Agreement specifies the allocation of mortgage revenue bonds allotted to each city participating in the program. Last year, the City of Brooklyn Center participated in the program with 37 other cities competing for $44,000,000 in mortgage revenue bond authority. This year, there were 60 cities competing for $47,000,000 in bonding authority. Last year, Brooklyn Center's allocation was $2,187,157 in mortgage authority. The City's 1993 allocation is $1,473,232. Although the MHFA is not charging any costs to cities participating in the MCPP, the Department of Finance does require a one time, nonrefundable processing fee amounting to $300.00. 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 1993 Minnesota Housing Finance Agency's Minnesota City Participation Program. C Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF MORTGAGE REVENUE BOND ALLOTMENT AGREEMENT FOR THE 1993 MINNESOTA HOUSING FINANCE AGENCY MINNESOTA CITY PARTICIPATION PROGRAM WHEREAS, the Brooklyn Center Economic Development Authority has elected to participate in the 1993 Minnesota Housing Finance Agency Minnesota City Participation Program; and WHEREAS, the Allotment Agreement for the 1993 Minnesota City Participation Program divides $47,556,000 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 $1,473,232 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 $300.00 for the Brooklyn Center Economic Development Authority. NOW, THEREFORE, BE IT RESOLVED by the Brooklyn Center Economic Development Authority as folliows: 1. The Brooklyn Center Economic Development Authority hereby authorizes its President and Executive Director to execute the Mortgage Revenue Bond Allotment Agreement for the 1993 Minnesota City Participation Program. 2. The Brooklyn Center Economic Development Authority authorizes payment of a deposit fee in the amount of $14,732.32 to the Minnesota Department of Finance. 3. The Brooklyn Center Economic Development Authority authorizes payment of a processing fee in the amount of $300.00 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. MORTGAGE REVENUE BOND ALLOTMENT AGREEMENT for 1993 THIS AGREEMENT shall have an effective date of the 12th day of May, 1993, 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 (1992), which such statute, along with any amendments thereto which have been or will be made by the 1993 Minnesota State Legislature, 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.0¢,1 Subd. 2a (a) (1992), along with any amendments thereto which have been or will be made by the 1993 Minnesota State Legislature, submitted an application to the MHFA for an allotment of Qualified Mortgage Bonds; and WHEREAS, Minn. Stat. §474A.061 Subd. 2a (b) (1992), along with any amendments thereto which have been or will be made by the 1993 Minnesota State Legislature, 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 WIIEREAS, the provisions contained in IRC §143(a)(1)(B) preclude the issuance of Qualified Mortgage Bonds after the 30th day of June, 1992; and WHEREAS, the Federal Congress is considering amending IRC §143(a)(1)(B) to allow for the issuance of Qualified Mortgage Bonds after the 30th day of June, 1992; and WHEREAS, the MHFA and the Recipients believe that the Federal Congress will amend IRC §143(a)(1)(B) to authorize and allow for the issuance of Qualified Mortgage Bonds after the 30th day of June, 1992, and wish to enter into an agreement regarding the allotment of Qualified Mortgage Bonds so that such bonds can be issued as soon as IRC §143(a)(1)(B) is so amended; and WHEREAS, the MllFA 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. MHFA Qualified Mortgage Bonds 1 (Ver - 3/11,93) Allotment Agreement r-= NOW, THEREFORE, the parties 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 Forty -Seven Million Five Hundred Fifty -Six Thousand and No /100 Dollars ($47,556,000.00). 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 (1992), along with any amendments thereto which have been, or the parties hereto believe may be, made by the 1993 Minnesota State Legislature. 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 (1992), along with any amendments thereto which have been, or the parties hereto believe may be, made by the 1993 Minnesota State Legislature. 4. Application Deposit and Application Fee. Upon Federal Congress amending IRC §143(a)(1)(B) to authorize and allow for the issuance of Qualified Mortgage Bonds, 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 (II1FA, and each such Recipient shall submit such application deposit 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) (1992), along with any amendments thereto which have been, or the parties hereto believe may be, made by the 1993 Minnesota State Legislature, 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. M - 1E REMAINING PORTION OF THIS PAGE IS INTENTIONALLY LEFT BLANK) MHFA Qualified Mortgage Bonds 2 (Ver - 5/11/93) Allotment Agreement THIS ALLOTMENT AGREEMENT was executed by the Brooklyn Center Economic Development Authority on the _ day of 1 1993. CITY: BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY By: Its: MHFA Qualified Mortgage Bonds 4 (Ver - 5/11) Allotment Agreement CITY OF BROOKLYN CENTER Council Meeting Date May 24 , , c Agenda Item Number !� REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION ACCEPTING QUOTATION AND AWARDING CONTRACT FOR DEMOLITION OF 6601 BRYANT AVENUE NORTH; AND RESOLUTION ACCEPTING QUOTATION AND AWARDING CONTRACT FOR DEMOLITION OF 419 - 69TH AVENUE NORTH DEPT. APPROVAL: TomBublitz, Community Development Specialist MANAGER'S REVIEW/RECONMENDATION: • No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached ) Invitations to submit proposals for the demolition of 6601 Bryant Avenue North and 419 - 69th Avenue North were sent to eight (8) demolition contractors. The contractors to which invitations were mailed are as follows: Carl Bolander and Sons Company Veit and Company, Inc. Kevitt Excavating, Inc. Herbst and Sons Construction Company, Inc. Doty & Sons, Inc. Roger Kjelberg Noah Bridges A. Kamish and Sons Only one quotation was received for each of the properties and was submitted by Veit and Company, Inc. The quote submitted by Veit and Company was identical for each property and totaled $4,316.90 for each property. Staff believes the quotes submitted by Veit and Company for demolition of the properties are reasonable quotes based on previous prices obtained for demolition of single - family properties in the City. Also, Veit and Company, Inc., has performed satisfactory demolition work for the City in the past. With regard to the identical quotes for each property, the sizes and structures of the properties at both locations are quite similar. The property located at 419 - 69th Avenue North in Brooklyn Center is a wood frame, single - family home with no basement and a ground floor area of 851 square feet. The property also includes storage sheds and miscellaneous debris which are to be • included in the demolition. There is also some appliances, furniture and personal belongings remaining inside the home The property located at 6601 Bryant Avenue North is a wood frame, single - family home with no basement consisting of a living area of 800 square feet, 100 square feet of porch and 407 square feet of garage. There is some furniture, appliances and personal belongings in the property at 6601 Bryant Avenue North. RECOMMENDATIONS Staff recommends approval of the Resolution Accepting Quotation and Awarding Contract for Demolition of 6601 Bryant Avenue North and Resolution Accepting Quotation and Awarding Contract for Demolition of 419 - 69th Avenue North. • • Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION ACCEPTING QUOTATIONS AND AWARDING CONTRACT FOR DEMOLITION OF 6601 BRYANT AVENUE NORTH WHEREAS, invitations to submit quotations for the demolition of 6601 Bryant Avenue North were sent to eight (8) demolition contractors; and WHEREAS, quotations were received for the demolition of 6601 Bryant Avenue North; and WHEREAS, the following quotations were received: Company Name Ouote Veit and Company, Inc. $4,316.90 NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center, that it is in the best interest of the Brooklyn Center EDA to accept the quotation for demolition of 6601 Bryant Avenue North submitted by Veit and Company, Inc., in the amount of $4,316.90; and the EDA Executive Director is hereby authorized to enter into a contract for demolition of the property described herein. 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. Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION ACCEPTING QUOTATIONS AND AWARDING CONTRACT FOR DEMOLITION OF 419 - 69TH AVENUE NORTH WHEREAS, invitations to submit quotations for the demolition of 419 - 69th Avenue North were sent to eight (8) demolition contractors; and WHEREAS, quotations were received for the demolition of 419 - 69th Avenue North; and WHEREAS, the following quotations were received: Company Name Ouote Veit and Company, Inc. $4,316.90 NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority in and for the City of Brooklyn Center, that it is in the best interest of the Brooklyn Center EDA to accept the quotation for demolition of 419 - 69th Avenue North submitted by Veit and Company, Inc., in the amount of $4,316.90; and the EDA Executive Director is hereby authorized to enter into a contract for demolition of the property described herein. 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.