Loading...
HomeMy WebLinkAbout1985 07-08 HRAP HRA AGENDA CITY OF BROOKLYN CENTER . JULY 8, 1985 (following adjournment of the City Council meeting) 1. Call to Order 2. Roll Call 3. Approval of Minutes - June 24, 1985 4. Resolution Approving and Authorizing the Execution of Amendment No. 2 to the Contract for Private Redevelopment with Brutger Companies, Inc. 5. Adjournment r MINUTES OF THE PROCEEDINGS OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER 'IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA SPECIAL SESSION JUNE 24, 1985 _ CITY HALL CALL TO ORDER The Brooklyn Center Housing and Redevelopment Authority met in special session and was called to order by Chairman Dean Nyquist at 9:33 p.m. ROLL CALL Chairman Dean Nyquist, Commissioners Gene Lhotka, Bill Hawes, and Rich Theis. Also present were HRA Director Gerald Splinter, Director of Public Works Sy Knapp, Director of Planning &Inspection Ron Warren, City Attorney Richard Schieffer, and Deputy City Clerk Geralyn Barone. Commissioner Celia Scott was absent from the proceedings of the Brooklyn Center Housing and Redevelopment Authority. APPROVAL OF MINUTES FEBRUARY 11, 1985 There was 'a motion by Comissioner Hawes and seconded by Commissioner Lhotka to approve the minutes of the February 11, 1985 Brooklyn Center Housing and Redevelopment Authority meeting as submitted. Voting in favor: Chairman Dean Nyquist, Commissioners Lhotka, Hawes, and Theis. Voting against: none. The motion passed. RESOLUTION NO. 85 -04 Member Gene Lhotka introduced the following resolution and moved its adoption: RESOLUTION APPROVING TWO (2) BROOKLYN CENTER HOUSING REHABILITATION GRANTS The motion for the adoption of the foregoing resolution was duly seconded by member Rich Theis. Commissioner Hawes asked if any follow -up is conducted to determine if the original applicants continue to live in the residence. The HRA Director responded that the Housing Coordinator,is attempting to establish a system, although this is not „yet in place. Upon vote being taken on Resolution No. 85-04, the following voted in favor thereof: Dean Nyquist, Gene Lhotka, Bill Hawes, and Rich Theis; and the following voted_ against the same: none, whereupon said resolution was declared duly passed and adopted. ADJOURNMENT There was a motion by Commissioner Lhotka and seconded by Commissioner Hawes to adjourn the meeting. Voting in favor: Chairman Nyquist, Commissioners Lhotka, Hawes, and Theis. Voting against: none. The motion passed. The Brooklyn Center Housing and Redevelopment Authority adjourned at 9:35 p.m. airman - 6 -24 -85 -1- - Member introduced the following resolution and moved its adoption: HRA RESOLUTION N0. RESOLUTION APPROVING AND AUTHORIZING THE EXECUTION OF AMENDMENT ' NO. 2 TO THE CONTRACT FOR PRIVATE REDEVELOPMENT WITH BRUTGER COMPANIES, INC. WHEREAS, The Housing and Redevelopment Authority in and for the City of Brooklyn Center, Minnesota (the "Authority ") in accordance with Resolution No. 83 10, adopted on April 11, 1983, has entered into a Contract for Private Development dated June 21, 1983, and amended by Amendment No. 1 dated as of June 21, 1983 ( the "Contract ") with Brutger Companies, Inc (the "Developer "), which contract provided in part for the construction by the Developer of a 73 -unit residential condominium development (the "Development "); and WHEREAS, the Authority and the Developer desire to amend the Contract in the manner set forth in Exhibit A attached hereto. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of The Housing and Redevelopment Authority in and for the City of Brooklyn Center, Minnesota: That Amendment No. 2 to the Contract for Private Development by and between the Authority and Brutger Companies, Inc., in substantially the form attached hereto as Exhibit A, is hereby approved, and the Chair and the Executive Director of the Authority are hereby authorized to execute such amendment on behalf of the Authority. Date Chairman The motion for the adoption of the foregoing resolution was duly seconded by member , and upon vote being taken thereon, the following voted in favor thereof: _and the following voted against the same: whereupon said resolution was declared duly passed and adopted. I • Amendment No. 2 This Amendment No. 2 (this "Amendment ") to the Contract for Private Development (the "Agreement ") dated June 21, 1983 and amended by Amendment No. 1 dated as of , 1983, by and between the Housing and Redevelopment Authority in and for the City of Brooklyn Center, Minnesota (the "Authority ") and Brutger Companies, Inc. (the "Developer ") is made as of the day of , 1985, by and between the Authority and the Developer. In consideration of the mutual promises hereinafter made in this Amendment, the Authority and the Developer hereby agree as follows: 1. Section 3.6(b) of the Agreement is hereby amended in its entirety to read as follows: (b) (i) To the extent that condominium units in the Phase II` Improvements are sold by the Developer to persons other than those in the Targeted Group the Developer shall pay to the Authority an amount equal to $2,900 per unit which represents the subsidy for the Phase II Improvements provided by the Authority. (ii) To the extent that apartments in the Phase I Improvements are at any time rented to persons other than those in the Targeted Group the Developer shall make a monthly payment to the Authority for each such apartment equal to $27.73, which amount represents the difference between market rates on such apartments and the rates at which the Developer is able to make the apartments available because of the assistance provided by the Authority in developing the Phase I Improvements pursuant to this Agreement. Such payment shal continue for any unit not rented to a person or family in the Targeted Group for each month the unit is not rented to a person or persons in the Targeted Group, until the aggregate payments for such unit equal $2,900. On a date which is ten years from the date on which Parcel 1 is conveyed to the Redeveloper, the Redeveloper may terminate its continuing obligation to make such payments for the units in the Phase I Improvements by making a payment of $966.66 to the Authority for each unit which is, on the date of such payment, rented to a person or family not in the Targeted Group. (iii) If the Developer leases condominium units in the Phase II Improvements or terminates the condominium that has been created with respect to the Phase II Improvements, the provisions of this paragraph (iii) control in lieu of the provisions of paragraph W above. To the extent that at any time prior to July 8, 1995 the Developer enters into a lease covering any apartment units in the Phase II Improvements under which lease none of the tenants is a person in the Targeted Group and the Developer fails or refuses to cancel and terminate any such lease agreement within thirty (30) days after it y written notice from the Authority to the Developer.. 1 C requiring the Developer to cancel and terminate such lease agreement, the Developer shall pay to the Authority within ten (10) days following the expiration of said thirty (30), day period the sum of $211,700 which sum represents the subsidy for the Phase II Improvements provided by the Authority; provided, however, that the foregoing provision shall not apply with respect to any lease agreement(s) entered into by the Developer with a resident manager or caretaker of the Phase II Improvements, or to any lease agreements entered into by an owner of a unit in the Phase II Improvements other than the Developer. 2. The definition of the Phase II Improvements set forth in Section 1.1 of the Agreement is hereby amended in its entirety to read as follows: "Phase II Improvements" means a multi- story residential rental apartment facility or condominium or condominiums (as the term is defined in Minnesota Statutes Chapter 515 or 515A) with no fewer than seventy- three units, including not fewer than two units adapted for handicapped persons, to be constructed on Parcel IL 3. If the Developer terminates the condominium that has been created with respect to the Phase II Improvements, the provisions of Section 5.2 of the Agreement relating to insurance following completion of construction, rather than those of Section 5.3, shall apply to the Phase lI Improvements in the manner in which such provisions apply to the Phase I Improvements. 4. If the Developer terminates the condominium which has been created ~� with respect to the Phase II Improvements, the provisions of Section 5.4 of the Agreement shall apply to the Phase II Improvements in the same manner in which such provisions apply to the Phase I Improvements. 5. Section 6.1 of the Agreement shall be amended in its entirety as follows: Sectiop 6.1. Tax Increment Guarantee. (a) Phases I and IL In the event that prior to the Maturity Date, the tax increment to be generated by the Phase I Improvements, Parcel I, the Phase II Improvements and Parcel II is not equal to seventy -four percent (74 %) of debt service due and payable on the Authority Funds, and when taken together with other funds in the Tax Increment Account, is insufficient to make the principal and interest payments as the same shall become due on the Authority Funds, the Authority shall provide notice to the Developer of such fact and the amount of the deficiency in tax increment. 'Thirty (30) days after receipt of such notice the Developer shall be liable for and shall pay to the Authority the amount of such deficiency. (b) Phase III. In the event that the tax increment generated by the Phase III Improvements and Parcel III which is payable in 1985 and 1986 is not equal to twenty -six percent (26 %) of debt service due and payable on the Authority Funds, and when taken together with other funds in the Tax Increment Account is insufficient to make the principal and interest payments as the same shall become due and payable on the Authority Funds, 2 the Authority shall provide notice to the Developer of such fact and the amount of the deficiency in tax increment. Thirty days after receipt of such notice the Developer shall become liable for and shall pay to the Authority the amount of such deficiency. The obligation of the Developer to make the payments provided for in this Section 6.1(a) and (b) shall be absolute and unconditional irrespective of any defense or any rights of setoff, recoupment or counter -claim it might otherwise have against the Authority or any other government body or other person. 6. Subsection (c) of Section 6.3 of the Agreement is hereby amended in its entirety as follows: (c) The Developer shall include in the declaration creating townhouses with respect to the Phase III Improvements and in the deeds pursuant to which units in the Phase III Improvements are sold a restriction consistent with Section 6.3(b) of this Agreement on the ability of the owners of such units to cause a reduction in property taxes paid with respect to such units. 7. Section 6.5 of the Agreement is hereby amended in its entirety as follows: Section 6.5. Assessment Agreements. (a) Prior to execution and delivery of a Deed for Parcel I pursuant to Article III of this Agreement, the . Developer and the Authority shall execute an Assessment Agreement for such Parcel, substantially in the form of the Assessment Agreement contained in Exhibit C of this Agreement. The Assessment Agreement shall provide that the Assessed Market Value of the Phase I Improvements upon completion shall be One Million Five Hundred Ninety One Thousand and Five Hundred Dollars (1,591,500). (b) If the Developer terminates the condominium that has been created with respect to the Phase II Improvements, then within thirty (30) days following such termination, the Developer and the Authority shall execute an Assessment Agreement relating to Parcel II and the Phase II Improvements, substantially in the form of the Assessment Agreement contained in Exhibit C of this Agreement. Such Assessment Agreement shall provide that the Assessed Market Value of the Phase II Improvements upon completion shall be Dollars 8. Subsection (c) of Section 3.6 of the Agreement is hereby deleted in its entirety. 9. Except as amended pursuant to the provisions of this Amendment No. 2, the Agreement, as previously amended, is hereby ratified and confirmed. IN WITNESS WHEREOF, the Authority has caused this Amendment to be duly executed in its name and on its behalf and has caused its seal to be hereunto duly affixed and the Developer has caused this Amendment to be duly executed in its name and on its behalf as of this day of , 1985. 3 (SEAL) THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF BROOKLYN CENTER, TA INNES M O By Its Chair And By Its Executive Director BRUTGER COMPANIES, INC. By Its 4