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HomeMy WebLinkAbout1992 05-11 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER MAY 11, 1992 (following adjournment of City Council meeting) 1. Call to Order 2. Roll Call 3. Approval of Minutes: a. April 13, 1992 - Special Session 4. Resolutions: a. Requesting the Hennepin County Housing and Redevelopment Authority to Exercise Certain of Its Powers in the City b. Authorizing Execution of Mortgage Revenue Bond Allotment Agreement for the 1992 Minnesota Housing Finance Agency Minnesota City Participation Program c. Authorizing Execution of Program Application - Commitment Agreement for the Minnesota Housing Finance Agency's Minnesota City Participation Program 5. Adjournment CITY OF BROOKLYN CENTER Council Mceting Date Mav 11, 1992 Agenda Item Number 3 Q— REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: EDA MINUTES - APRIL 13, 1992 - SPECIAL SESSION DEPT. APPROVAL: Brad Hoffman, EDA Coo inator MANAGER'S REVIEW/RECOABMNDATION: No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached ) RECOMMENDED CITY COUNCIL ACTION • MINUTES OF THE PROCEEDINGS OF THE ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION APRIL 13, 1992 CITY HALL CALL T ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Todd Paulson at 9:39 p.m. ROL CA President Todd Paulson, Commissioners Dave Rosene, and Philip Cohen. Excused were Commissioners Cilia Scott and Jerry Pedlar. Also present were City Manager Gerald Splinter, EDA Coordinator Brad Hoffman, City Attorney Charlie Let- 'everc, Director of Public Norks Sy Knapp, Director of Planning and Inspection Ron Warren, Finance Director Paul Holmlund, and Council Secretary Carla Wirth, AP PRO V AL OF MINUTES MARCH 9. 1992 - SPE CIAL. SESSION There was a motion by Commissioner Rosene and seconded by CQmrnissicuier Cohen to approve the minutes of the March 9, 1992, EDA meeting. The motion passed unanimously. SOLUTIONS The City Manager indicated the Council approved an amendment to the Year XVII CDBG Program at the March 23, 1992, meeting to fund the Brooklyn Boulevard Redevelopment Study. The proposed resolution is a "housekeeping resolution" which authorizes execution of the third party agreement between the Brooklyn Center City Council and Brooklyn Center EDA, RESOLUTION NO, 92-10 Coiamissioncr Roseno introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING EXECUTION OF THIRD PARTY AGREEMENT FOR AMENDMENT TO YEAR XVII COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Cohen and the motion passed unanimously. 4/13/92 1 ZA HLE BRO WI`T HERITAGE CENTER CAPITAL OUTLAY Th City; Manager indicated the proposed resolution would approve the purchase of 300 additional chairs for the Heritage Center as well as completing window treatments at the Iflrt. The EDA Coordinator explained adoption of the resolution would formalize the motion prcvio::sly approved by the EDA for these expenditures. RESOLUTION NO. 92 -11 Commissioner Cohen introduced the following resolution and moved its adoption: RESOLUTION ADDING TO THE PROJECT 8876 IN THE EARLE BROWN T.I.F. DISTRICT FUND FOR 1992 CAPITAL IMPRVVEMENTS AT THE EARLE BROWN HERITAGE CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Rosene and the motion passed unanimously. RESOL TTION NO. 92 -12 Commissioner Roscne introduced the following resolution and moved its adoption: RESOLUTION ESTABLISHING PROJECT 8854 IN THE EARLE BROWN T.I.F. DISTRICT FUND FOR A 199 CAPITAL IMPROVEMENT TO ADD WINDOW TREATMENTS TO THE INN ON THE FARM 0 The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Cohen and the motion passed unanimously. RES01-UTION ESTABLISHING PROJECT NUMBER 8855 IN THE EARLE BROWN TA -E._DA R I 'T FtJNl� FOR 1992 A CAPITAL IMPROV>✓MI✓Iv 1 rQR CoNVERSrQN + OF THE - C-DARN AT TH EARLE BROWN HERITAGE CENTER i hC City Manager then presented a resolution for the FDA's consideration which would address converting he C -Barn to meet space and establishes a budget of $75,000. All g g p 8 costs of the project would be charged to the Earle Brown Tax Increment District. President Paulson questioned the option of using the GBarn for City Hall space needs and asked what type of meetings it would be used for. The EDA Coordinator respuaded the C -Barn would primarily be used for small meeting groups (25 to 100 persons). They have found an increase in business for small corporation gatherings which the Hippodrome is too large to accommodate but would work well for the GBarn. With regard to City Hall space needs, he felt the C -Barn is too small to be of use. 3 - 4/ 1 /92 2, r Commissioner Rosene questioned the possibility of using the converted C -Barn as a Council Chambers, The City Manager responded the existing Council Chambers is significantly larger than the C -Barn. The EDA Coordinator agreed and indicated the C -Barn could continue to be used for various Commisgion meetings. Commissioner Cohen requested an explanation regarding the rental option. The EDA (.coordinator cxplained leasing the C -Barn would result in a tax issue; however, if the space is rented it can retain a tax exempt status, He then reviewed the estimated dollar figures for leasing versus renting, President Paulson questioned the proposed configuration of the C -Barn. The EDA Coordinator indicated staff is still developing a configuration and will submit it for EDA consideration in the near future. With regard to opening the attic area, the EDA Coordinator felt it may be cost prohibitive but he will provide the EDA with estimated costs. He pointed out the attic area could be rented for small retreats. He added the square footage is small enough that the C -Barn is not required to meet access requirements. RESOLUTION NO, 2 -13 Curnnai5sioncr Roseno introduccd the following resolution and moved its adoption: - RESOLU T ION ESTABLISHING PROJECT NUMBER 8855 IN THE EARLE BROWN T.LF, DISTRICT FUND FOR 1992 A CAPITAL IMPRO VEMENi' FOR CONVERSION OF THE C -BARN AT THE EARLE BROWN HERITAGE CENTER The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Cohen and the motion passed unanimously. RESO LUTION AUTHORIZING SUBMI AL OF ANA PLICATION FOR FUNDING F _QIR THE MINNESOTA CITY PARTICIPATION PROQKAM (MCPP) The City Manager indicated the Minnesota City Participation Program (MCPP) would provide a set aside of up to $4 million for below market rate mortgage loans to first -time home buyers in Brooklyn Ccnter. The EDA Coordinator explained, if approved, this would be the third time the City has applied for funding for the MCPP, which is a lottery -type of situation. RESQ TLTIIO_N N O. 92-14 Ccnlmissioncr Cohcn introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING SUBMITTAL OF AN APPLICATION FOR FUNDING UNDER THE MINNESOTA CITY PARTICIPATION PROGRAM (MCPP) The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Roscnc and the motion passed unanimously. 4/13/92 -3- RED sIN S _FECiAL EDA )k'ORK S ESSIQN OF APRIL 20 19 TI►e City NI'anager explained staff is unable to gather the needed information by thu `Irorksession schcduled for April 20, 1992. Thercfore, staff recommends the meeting be canceled. There was a motion by Commissioner Cohen and seconded by Commissioner Rosene to rescind she Special hDA Worksession scheduled for April 20, 1992. Thu motion passed unanimously, ADJOURNMENT There was a motion by Commissioner Rosene and seconded by Commissioner Cohen to adjourn the meeting. The motion passed unanimously. The Brooklyn Center )economic Development Authority adjourned at 9:50 p.m. Todd Paulson, President Recorded and transcribed by: Carla Wirth Northcrn Counties Secretarial Services ., 4/13/92 -4- CITY OF BROOKLYN CENTER c ouncil Meeting Date May 11 1992 Agenda Item Number / 1, a� REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: PROPOSAL TO ALLOW THE HENNEPIN COUNTY HRA TO EXERCISE ITS POWERS IN BROOKLYN CENTER DEPT. APPROVAL: Brad Hoffman, EDA Coor ' ator MANAGER'S REVIEW/RECOMMENDATION: & No comments to supplement this report Comments below /attached SUMMARY EXPLANATION: (supplemental sheets attached Yes • On Monday evening, the EDA will be giving consideration to the resolution authorizing the possibility of doing a project in Brooklyn Center. The proposed site is just south of the Joslyn property on Twin Lake Avenue. The attached is a brief description of the project as proposed by Surety Resource Management. As you will note, the project contemplates the construction of a four unit townhome (group home) to provide services for people afflicted with M.S., M.D., cerebral palsy or head injuries. While the resolution only authorizes the County HRA to explore the financing of this project, it does not authorize the project itself. A second resolution would have to come before the EDA approving the financing of the project before it could be started. Also, the project is subject to the same review and requirements as any project. It is currently zoned R -4, which would be appropriate for a group home use. There are questions about the size of the lot and the site's location in the flood plain as well as other items that need to be addressed through the planning process. I am not sure to what extent Surety Resource Management has considered these items. Mr. Craig Ruschmeyer will be present at Monday's meeting to answer the EDA's questions. Apart from the attached, I know very little else about the project. You should note that the resolution grants authority to the Hennepin County HRA for this project only. RECOMMENDED CITY COUNCIL A TION We have no recommendations on this project. ► SURETY RESOURCE MANAGEMENT, LTD. ` 220 Rosedale Tower 1700 West Highway 36 St. Paul, MN 55113 Phone (612) 628 -0500 Fax (612) 628 -0622 April 27, 1992 Mr. Brad Hoffman City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 Dear Mr. Hoffman: Pursuant to our telephone conversation, please find attached a suggested HRA resolution that we seek passage of and the section of the Minnesota Statute that it is derived from. The purpose of the action is to allow a bonding authority (Hennepin County HRA) to do the necessary due diligence for financing of a project that could potentially have a site in Brooklyn Center. This resolution is exclusive to this occasion and is subject to all other city zoning and city ordinances. A final resolution and site plan will come before the City Council prior to approval. The project involves a four unit town home development for The Community Home Program (CHP), who plans on using the site to house handicapped individuals with Multiple Sclerosis, Muscular Dystrophy, and Cerebral Palsy. The process of securing authorization for building will proceed under normal city procedures within the next 30 days. Thank you for your consideration. Sincerely, Craig C. Ruschmc Y er President CR:ch Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION REQUESTING THE HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY TO EXERCISE CERTAIN OF ITS PLANNING POWERS IN THE CITY TO DEVELOP A PROJECT BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Brooklyn Center, Minnesota (the "Authority "), as follows: Section 1. The Authority has been requested to consider a housing project proposed to be undertaken by The Community Home Program Company in the City, and to consider the financing of the project by the Hennepin County Housing & Redevelopment Authority (the " HCHRA"). Section 2. In accordance with Minnesota Statutes, Section 383B.77, Subdivision 2, the Authority requests the HCHRA to exercise its planning powers in the City with respect to the development project. Section 3. The Authority and The Community Home Program Company agree that the proposed project is subject to all customary zoning and building permit procedures and all municipal ordinances. Section 4. The Authority notes that the proposed site of the project is located within the flood plain. It also notes that the size of the project site may not be sufficient to support a project of the scope proposed. Section 5. This resolution is not an endorsement or approval of the project. 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. 6 �l a \t r The Community Home Program MEETING YOUR NEEDS Presently young adults with disabilities have two types of health care services available: either they are placed in skilled nursing facilities (nursing homes) or they receive home bound care. If you have a degenerative disease or severe head injury neither option can fully address your needs. In fact, these options often create psychological barriers that may actually inhibit your progress. Because nursing home care focuses primarily on the geriatric community, it cannot effectively respond to your social, psychological, or vocational needs. Likewise, home health care, despite its acknowledged desirability, often places unanticipated financial, emotional, and physical demands on your family. Our Philosophy The Community Home Program exists to enhance your quality of life by - is emphasizing individual - ability, dignity, and autonomy. r - The Community Home Program offers you a unique care ative that: • Encourages your independence • Offers the emotional security of - home health care in a non - institutional setting • Employs responsive, professional care givers who understand your situation • Delivers consolidated, coordinated, need - specific therapy • Fosters social interaction with family and friends • Promotes an environment of understanding and long -term friendships • Creates supportive relationships with people who have the same or similar conditions The Community Home Program is committed to providing you with the most comprehensive care available, within a barrier free community home. OUR PROGRAM The Community Home Program has evolved from the combined efforts of existing health care professionals, providers, and advocacy groups who originally identified this need in the long -term care continuum. By adapting the key services from other medical delivery models we have conceived a care program that: • Preserves individual integrity - • Exceeds industry standards • Reduces existing provider costs As a distinctive consortium, The Community Home Program draws from many sources within the health care spectrum including: • Therapeutic and rehabilitative care • Nutrition • Home health care • Barrier free construction • Psychological services • Accessible transportation • Governmental regulation • Real estate management It is The Community Home Program's comprehensive approach that is so fundamental to its success. Your home has 24 -hour Personal Care Attendant (PCA) services and delivers individual care and therapy programs which in turn are linked by an exclusive accessible transportation system YOUR HOME Each home, located in a Twin City suburb, is a newly constructed barrier free twin -home similar to the one illustrated on the cover. The actual housing design reveals our concerns for your safety and comfort. Barrier free architecture blends with steel framed construction to produce dwellings that'are fire resistant, extremely durable, while still harmonizing with the present neighborhood. Currently employed in every state, this construction method is also rapidly becoming the housing of choice in Southern California. We plan to erect - I similar structures throughout the Twin Cities metro area. In future phases we envision placing these F homes in regional centers throughout Greater -- Minnesota and other Midwestern metropolitan areas. t To insure your continued independence and safety, each home features fully accessible bathrooms and kitchens and contains computerized fire detectors and intercoms. Three adults share a home that consists of over 1,900 square feet of thoughtfully furnished living space. Normal Living In -house property — – managers keep your home and grounds properly maintained creating a home environment that blends with the neighborhood. COMMUTING WITH CONVENIENCE The Community Home Program has an exclusive contract with transportation services that use accessible vans. Each vehicle transports up to four wheelchair users, a passenger and the driver. The system adapts to fit your schedule rather than forcing you to adhere to a predetermined timetable. This type of transportation system is also more desirable because the drivers develop a rapport with their riders, become more sensitive to your needs, - and have an increased familiarity with the whole program, rather than simply transporting people. 4 0 .. A w . As ith all aspects of The Community Home program, the staff's primary concern is care and integrity. Safety is paramount. This translates into employing only professional drivers with blemish -free driving records and using equipment that meets or exceeds legislated requirements; both of which- are carefully and routinely monitored. Mobili Our system adapts to fit your schedule: rather than forcing you to adhere to a predetermined • timetable. Because commuter comfort is also of great importance, steps have been taken to minimize the actual travel time from your community home to the care facility. Direct routing from your home to other destinations also allows for fewer stops for additional riders. CARE PHILOSOPHY The Community Home Program care philosophy focuses on active, self - directed treatment rather than custodial care. Program professionals work with you to maintain function and ability through therapeutic care without heavy reliance on drugs. Personal Care Attendants Your home employs live -in Personal Care Attendants (PCNs) who are on duty 24 hours a day. Each PCA is trained and supervised by the professional who is responsible for your treatment plan. Together you and the care professionals create an integrated, comprehensive Individual Care Plan (ICP) that is tailored to your needs. The ICP is initially prescribed by your primary physician and then recommended to your therapist. Additionally, your PCA is in direct communication with your therapist and other care providers. Weekly meetings insure . continuity and consistency in implementing your ICP; , "{ thereby insuring that you are receiving the most comprehensive care. In addition to monitoring your ICP, the T PCA assists in scheduling and transportation needs. r :" Some potentially needed services are also available hr t ou h outside g P These services include: • Medical Doctors • Opticians • Dentists • Spiritual Advisors • Chiropractors Professional Services Primary services are provided at a convenient centralized care facility by licensed, experienced specialists. These services include: • Physical Therapy • Occupational Therapy • Speech Pathology • Psychological Services r Additional services may include: Employment Assistance rj 1 Neurology *` Neuropsychology Skilled Nursing Nutrition Counseling Respiratory Therapy Therapeutic Aquatic Vocational Counseling As development funds become available for residents with unique requirements, CHP also plans to provide specialized treatment that goes beyond the scope of traditional health care services. Our commitment to excellence keeps your care options at the forefront and insures that leading edge technology remains the standard of The Community Home Program. ...to provide a quality life through independent living emphasizing individual ability, dignity, and autonomy 'A New Direction In Adult Foster Care" 245 Fast Sixth Street, St. Paul, MN 55101 • (612) 228 -3717 ' CITY OF BROOKLYN CENTER Council Meeting Date May 11, 1992 Agenda Item Numbe • REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION AUTHORIZING EXECUTION OF MORTGAGE REVENUE BOND ALLOTMENT AGREEMENT FOR THE 1992 MINNESOTA HOUSING FINANCE AGENCY MINNESOTA CITY PARTICIPATION PROGRAM DEPT. APPROVAL: Tom Bublitz, Assistant EDA Coordihator MANAGER'S REVIEW/RECOAA1ENDATION: r No comments to supplement this report Comments below /attached ******************************************************** * * * * * * * * * * * * * * * * * * * * * * * * * * * * * ** • SUM MURY EXPLANATION: (supplemental sheets attached )Yes The Minnesota City Participation Program (MCPP) Allotment Agreement specifies the allocation of mortgage revenue funds allotted to each city participating in the program. Brooklyn Center's allocation is $2,187,157.00. An Application deposit of one percent (1 %) of this amount is required to be submitted with the Allotment Agreement. This 1% fee, or $21,871.57, will be refunded to the City thirty (30) days after the mortgage revenue bonds are issued. A non - refundable processing fee amounting to $400.00 is also required to be submitted with the Allotment Agreement. This processing fee was not mentioned in the MHFA Application material, and it is my understanding it is a fee being charged by the Minnesota Department of Finance, and not the MHFA. A copy of the Allotment Agreement is included with this memorandum. • RECOMMENDED CITY COUNCIL ACTION Staff recommends approval of Resolution Authorizing Execution of Mortgage Revenue Bond Allotment Agreement for the 1992 Minnesota Housing Finance Agency Minnesota City Participation Program. y Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF MORTGAGE REVENUE BOND ALLOTMENT AGREEMENT FOR THE 1992 MINNESOTA HOUSING FINANCE AGENCY MINNESOTA CITY PARTICIPATION PROGRAM WHEREAS, the Brooklyn Center Economic Development Authority has elected to participate in the 1992 Minnesota Housing Finance Agency Minnesota City Participation Program; and WHEREAS, the Allotment Agreement for the 1992 Minnesota City Participation Program divides $44,331,000.00 in mortgage revenue bonds among thirty -seven (37) cities participating in the Minnesota City Participation Program; and WHEREAS, the Brooklyn Center Economic Development Authority has been allocated $2,187,157.00 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 $400.00 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 1992 Minnesota City Participation Program. 2. The Brooklyn Center Economic Development Authority authorizes payment of a deposit fee in the amount of $21,871.75 to the Minnesota Department of Finance. 3. The Brooklyn Center Economic Development Authority authorizes payment of a processing fee in the amount of $400.00 to the Minnesota Department of Finance. 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. 2 , MORTGAGE REVENUE BOND ALLOTMENT AGREEMENT for 1992 THIS AGREEMENT shall have an effective date of the 4th day of Ma v , 1992, 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 arnongst 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 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. Star. §474A.061 Subd. 2a (1991 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. Star. §474A.061 Subd. 2a (a) (1991 Suppl.), submitted an application to the MHFA for an allotment of Qualified Mortgage Bonds; and WHEREAS, Minn. Stat. §474A.061 Subd. 2a (b) (1991 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 he Recipients; 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 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 -Four Million Three Hundred Thirty -One Thousand and No /100 Dollars ($44,331,000.00). 2. Applications and Deposit. Each Recipient has submitted to the MHFA (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 (1991 Suppl.), (ii) a MHFA Qualified Mortgage Bonds (4/24/92) Allotment Agreement corresponding application deposit in the amount specified in and required by Minn. Stat. §474A.061 subd. 2a (a) (5) (1991 Suppl.), and a corresponding nonrefundable application fee in an amount specified in and required by Minn. Stat. §474A.03 subd. 4 (1991 Suppl.). 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 (1991 Suppl.). 4. Forward to Commissioner. The MHFA shall, in accordance with the provisions contained in Minn. Stat. §474.061 Subd. 2a (b) (1991 Suppl.), forward this Agreement and the corresponding application deposit to the Commissioner of Finance. (THE REMAINING PORTION OF THIS PAGE IS INTENTIONALLY LEFT BLANK) MHFA Qualified Mortgage Bonds (4/24/92) Allotment Agreement THIS ALLOTMENT AGREEMENT was executed by the Brooklyn Center Economic Development Authority on the 11 day of Ma y 1 1992 BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY By: Its: President By: Its: Executive Director THIS ALLOTMENT AGREEMENT was executed by the Brooklyn Center Economic Development Authority on the 11 day of May , 1992. BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY By: Its: President B Its: Executive Director Exhibit A List of Recipients Anoka Housing and Redevelopment Authority Beltrami County Bemidji Economic Development Authority Brainerd Housing and Redevelopment Authority Brooklyn Center Economic Development Authority Buffalo Housing and Redevelopment Authority City of Barnesville City of Brooklyn Park Housing and Redevelopment Authority City of Dilworth City of Duluth City of Eden Prairie City of Glencoe City of Hopkins City of Jackson City of Maple Lake City of Marshall City of Minnetonka City of Northfield Housing and Redevelopment Authority City of Otsego Economic Development Authority City of Owatonna City of Pipestone City of St. James City of White Bear Lake County of Wright Crystal Economic Development Authority Elk River Economic Development Authority Golden Valley Housing and Redevelopment Authority Housing and Redevelopment Authority of Austin Housing and Redevelopment Authority of Columbia Heights Housing and Redevelopment Authority of the City of Faribault Housing and Redevelopment Authority in and for the City of Richfield Housing and Redevelopment Authority of Rochester Housing and Redevelopment Authority of Todd County Little Falls Housing and Redevelopment Authority Morrison County Housing and Redevelopment Authority Robbinsdale Economic Development Authority Swift County Housing and Redevelopment Authority Is Exhibit B Allotment Name of Recipient Amount of Allotment Anoka Housing and Redevelopment Authority $921,789 Beltrami County $500,000 Bemidji Economic Development Authority $1,048,326 Brainerd Housing and Redevelopment Authority $1,132,684 Brooklyn Center Economic Development Authority $2,187,157 Buffalo Housing and Redevelopment Authority $500,000 City of Barnesville $500,000 City of Brooklyn Park Housing and Redevelopment Authority $2,187,157 City of Dilworth $1,554,473 City of Duluth $1,132,684 City of Eden Prairie $2,187,157 City of Glencoe $921,789 City of Hopkins $1,174,863 City of Jackson $250,000 City of Maple Lake $500,000 City of Marshall $837,431 City of Minnetonka $2,187,157 City of Northfield Housing and Redevelopment Authority $1,117,499 City of Otsego Economic Development Authority $1,132,684 City of Owatonna $921,789 City of Pipestone $400,000 City of St. James $500,000 City of White Bear Lake $2,187,157 County of Wright $921,789 Crystal Economic Development Authority $2,187,157 Elk River Economic Development Authority $1,132,684 Golden Valley Housing and Redevelopment Authority $1,343,578 Housing and Redevelopment Authority of Austin $1,006,147 Housing and Redevelopment Authority of Columbia Heights $2,187,157 Housing and Redevelopment Authority of the City of Faribault $1,259,221 Housing and Redevelopment Authority in and for the City of Richfield $2,187,157 Housing and Redevelopment Authority of Rochester $2,187,157 Housing and Redevelopment Authority of Todd County $500,000 Little Falls Housing and Redevelopment Authority $500,000 Morrison County Housing and Redevelopment Authority $500,000 Robbinsdale Economic Development Authority $2,187,157 Swift County Housing and Redevelopment Authority $250,000 CITY OF BROOKLYN CENTER Council Meeting Date May 11, 1992 Agenda Item Numbe REQUEST FOR COUNCIL CONSIDERATION ITEM DESCRIPTION: RESOLUTION AUTHORIZING EXECUTION OF PROGRAM APPLICATION - COMMITMENT AGREEMENT FOR THE MINNESOTA HOUSING FINANCE AGENCY'S MINNESOTA CITY PARTICIPATION PROGRAM DEPT. APPROVAL:.. Toni Bublitz, Assistant EDA Coordinator MANAGER'S REVIEW/RECOAMENDATION: No comments to supplement this report Comments below /attached SUNDiIARY EXPLANATION: (supplemental sheets attached Yes • The Minnesota City Participation Program (MCPP) is a mortgage program offered through the Minnesota Housing Finance Agency (MHFA) for first time home buyers. Through the MCPP, the MHFA sells bonds on behalf of cities participating in the program. The interest rates on these mortgages are typically 1 1/2 to 2 percentage points below market mortgage interest rates. The Brooklyn Center Economic Development Authority authorized submittal of an application to the MHFA for the MCPP at its April 13, 1992 meeting. The City of Brooklyn Center was notified that, along with thirty -six (36) other cities statewide, Brooklyn Center would receive a set -aside of mortgage n under funds a the MCPP. On Monday, May 4 1992, the MHFA held a meeting with all 37 cities participating in the MCPP to determine an allocation of avail able n fu ds since the cities requests totaled $68,134,000.00 and the funds available will be $44,331,000.00. The City of Brooklyn Center received an allocation of $2,187,157.00. The City's allocation of $2,187,157.00 in first time home buyer mortgage funds will be set aside for exclusive use by the City of Brooklyn Center for a period of six (6) months at a specific interest rate. After the six month period, the funds will then be set aside for an additional three (3) months, but MHFA has the option of increasing the interest rate for the last three months. After nine (9) months, MHFA has the option of making any unused funds available for other programs. As a point of information, the 1991 MCPP had an interest rate of 7.45 %. Income limits for eligible homeowner in s the MCPP are set at eighty percent 80 0 g % g tY P ( ) of metro area • median income. For a family of four, eighty percent of median is $38,400.00 annual gross income. Maximum house price limits eligible for the MCPP are currently set at $81,450.00. This figure is set by the Department of Housing and Urban Development (HUD), and is the standard that must be used in mortgage revenue bond programs. The $81,450.00 "safe harbor" limit is based on a sampling of recent home sales in the area. The "safe harbor" term refers to the maximum purchase price limit based on the sampling of local sales. The $81,450.00 price limit was based on a sampling of only one hundred twenty -four (124) homes. Under the laws regulating mortgage revenue bonds, the house price limits can be adjusted by using a larger sampling of home sales. MHFA is currently assembling a sampling of home sales based on 13,000 - 14,000 homes. By using this larger sample, MHFA hopes to increase the maximum house price limits to $85,000.00. • All cities participating in the MCPP are required to execute a Program Application - Commitment Agreement. This Agreement sets forth the operating terms and conditions of the MCPP and is the same for all 37 cities participating in the program. A copy of the program Application - Commitment Agreement is included with this memorandum. • RECOMMENDED CITY COUNCIL ACTION Staff recommends approval of the Resolution Authorizing Execution of Program Application - Commitment Agreement for the Minnesota Housing Finance Agency's Minnesota City Participation Program. • 2 Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF PROGRAM APPLICATION - COMMITMENT AGREEMENT FOR THE 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 $2,187,157.00; 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 Brooklyn Center 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, 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. Stat. §474A.061 Subd. 2a (1991 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 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 applicable, 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 shill be effective only upon the approval thereof by MHFA at the place provided for herembelow, 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 Form 92 -1 1 (Rev 4/27/92) 3. Variance in Commitment Amount. A variance of $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 nine (9) months therefrom. 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 six (6) month time period (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 by way of a written statement to the City and the Lender; provided, however, under no circumstances shall such interest rate exceed twelve percent ( 12 %) per annum, and 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, (H) the right to seek equitable relief by way of injunction (mandatory or prohibitory) to prevent the breach or threatened breach of any of the provisions of the Program Commitment City Participation Program Form 92 -1 2 (Rev 4/27/92) 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 1st day of June , 1992, 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 it deems it is economically feasible to do so. (THE REMAINING PORTION OF THIS PAGE IS INTENTIONALLY LEFT BLANK) City Participation Program Fornn 92 -1 3 (Rcv 4/27/92) IN WITNESS WIll.REOF, the City has set its hand this - 1 - L day of May 192 CITY CITY BROOKLYN CENTER ECONOMIC BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY DEVELOPMENT' AITTIIORI'rY President Executive Director By: By: (Signature of Authorized Officer ) ( Signature of Authorized Officer) Todd Paulson Gerald G. Splinter (Printed or Typewritten Name of (Printed or Typewritten None of Authorized Officer) Authorized Officer) REQUESTED COMMITMENT AMOUNT $ MIIFA APPROVAL MI IFA hereby accepts the above Progr<aun Application- Commitment Agreement and approves and grants the following: APPROVED COMMITMENT AMOUNT $ MINNESOTA HOUSING FINANCE AGI'sNCY By: Its: Director of Homc Mortgage Progrmus Signed this day of 1 19— SUMMARY (To be completed by MHPA) City's requested commitment amount $ Conuuilment Amount granted by MI IFA $ City 1 nrlic it ration Progrmn Form 92-1 4 (Rev 4/27/92) IN WITNESS WHEREOF, the City has set its timid this 11- day of May 1922 CITY CITY BROOKLYN CENTER ECONOMIC BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY DEVELOPMENT AUTHORITY President Executive Director By: By: (Signature of Authorized Officer (Signature of Authorized Officer) Todd Paulson Gerald G. Splinter (Printed or Typewritten Name of (Printed or "Typewritten Naive of Authorized Officer) Authorized Officer) REQUESTED COMMTIDMENT AMOUNT $ MIIFA APPROVAL MllFA hereby accepts the above Program Application - Commitment Agreement and approves and grants the following: APPROVED COMMITMENT AMOUNT $ MINNESOTA HOUSING FINANCE AGENCY By: Its: Director of Home Mortgage Programs Signed this day of 19_. SUMMARY (To be completed by MI -IPA) City's requested commitment annount $ Conunitment Amount granted by Ml IFA $ City Participation 1 1 rog—i Form 92 -1 4 (Rev 4/27/92)