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Home My WebLink About1983 06-13 HRAP HRA AGUNDA CITY OF BROOKLYN CRNUTR JUNE 13 1983 (Following adjourriraent of the City Council meeting) 1. Call to Order 2. Roll Call 3. Approval. of Minutes - April 11, 1983 4. Resolution Approving Six Housing Rehabilitation Grants 5. Adjournment e T;T"T TES OF TTTF PROCRIIPITIGS OF TITF HOUSTNG ATTD RED a JPT ",f'T7 AUTI,( -; iRT,`7 OF '"i CITY OF BROOKLYN CENTER IN UIE, COUNTY OF I' , TIEPIN AND THE STATE OF MIT' TTESOTA SPECIAL SFSSI:CTT APRIL 11, 1983 CITY HALL CALL TO ORDFR The Brooklyn Center Housing and Redevelopment Authority met in special session and was called to order by Chairman Dean TTyauist at 7:02 p.m. ROLL CALL Chairman Dean Nyquist, Commissioners Gene Lhotka, Celia Scott, Bill Hawes. and Rich Theis. Also present were HRA Director Gerald Splinter, Director of Public Works Sy Knapp, Director. of Planning & Inspection Ron 1 City Attorney Richard Schieffer, Assistant City Engineer Jim Grube, and Administrative resistant Tom Bublitz. INVOCATION The invocation was offered by Mr. Steve Saindon, Camgas Minister for the Brooklyn Center Church of Christ. APPROVAL OF MIIi1UTES - MARCH 14, 1 983, M ARCH 28, 1983 There was a motion by Commissioner Lhotka and seconded by Commissioner Scott to approve the minutes of the Parch 14, 1983 Housing and Redevelopment Authority meeting as submitted. Voting in favor: Chairman Nyquist, Commissioners Lhotka, Scott, and Hawes. Voting against: none. The motion passed. Commissioner Theis abstained from the vote as he was not present at the March 14, 1983 meeting. There was a motion by Commissioner Hawes and seconded by Commissioner Theis to approve the minutes of the T'Tarch 28, 1983 Housing and Redevelopment Authority meeting as submitted. Voting in favor: Chairman Nyquist, Commissioners Lhotka, Scott,,Hawes, and Theis. Voting against: none. The motion passed unanimously. PUBLIC N� ARl TG R- 70 DTSPCSTMTON OF PR BY TIT FROO= CEIITER HCTJSING AST REDEVELCpi T�'i T AU�i:t ORTT" T a AC CORI' ^.T'C f ; r _ � 1 1 �TL'SQ STATUTi S, SECTTCTT 46 2-5 2 15 OF THE Il1TTICIPAL HOUSIAG t T?D RF.r- 1',YILP SIT AC 'I ORImY ACT, MITITIF.SOTA STATUTES, C?�A °Tc' X2.411 F.T. SEQ. The ERA Director introduced a series of resolutions and explained to the Housing Authority that the passage of the resolutions is required after the public hearing is Yield. Chairman Nyquist opened the meeting for the purpose of a Public Hearing Regarding Disposition of Property by the Brooklyn Center Housing and Redevelopment Authority in Accordance with Minnesota Statutes, Section 462.525 of the T'unicipal Housing and Redevelopment Authority Act, Minnesota Statutes, Chapter 462.411 et. seq. He inquired if there was anyone present vino wished to speak at the public hearing. The HRA Director briefly revieitied tr.e pA ~oject, including the location and the number and type of units proposed for development. F,ayor Nyquist inquired whether anyone else I ished to speak at the public hearing. 210 one appeared to speak and he entertained a motion to close the public hearing. 4 -11 -83 -1- There was a, motion by Commissioner Scott and seconded by Commissioner Hawes to close the public hearing. Voting in favor: Chairman Nyquist, Commissioners Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously. RESOLUTION NO. 83-5 A'ember Celia, Scott introduced the following resolution and moved its adoption: RESOLUTION ESTABLISHING AND DESIGNATING A fIOtTSING DEVELOPMENT PROD T BY THE BROOKLYN CENTER HOUSING AND REDEVELOPA I1T AUTHORITY PURSUANT TO THE PROVISIONS OF MINi'ESOTA STATUTES, 462.411 ET. SEQ. The motion for the adoption of the foregoing ,resolution was duly seconded. by member Gene Lhotka, and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. RESOLUTION 110. 83 -9 Member Rich Theis introduced the following resolution and moved its adoption: RESOLUTION APPROVING THE DISPOSITION OF PROPERTY BY THE BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORITY The motion for the adoption of the foregoing resolution was duly seconded by member Celia Scott, and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene Lhotka., Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. The HRA Director introduced a Resolution Authorizing Execution of Contract for Private Development by and between the Housing and Redevelopment Authority in and for the City of Brooklyn Center and Brutger Companies, Inc. Chairman Nyquist recognized Ms. Barb Portwood, of the law firm of Holmes & Graven, who reviewed the contract between the Brooklyn Center ERA and Brutger Companies, Inc. She pointed out several protections built into the contract for the HRA. She explained the developer will be required to submit a letter of credit in the amount of $125,000 and the IRA will also review the marketing plans prior to construction of the project. With regard to the marketing plan, Ms. Portwood pointed out that the developer would be required to pay between $2,000 to $4,000 per unit to the HRA if the units cannot be marketed to individuals 55 and older. Ms. Portwood continued to review the stipulations of the contract and pointed out that Brutger Companies, Inc. guarantees the tax increment required by the City to make the project work. She also explained that insurance would be paid by Brutger Companies, Inc. if the units were completely destroyed and not rebuilt. She also noted that the HIRA can retake the property if the pro is not built, and that upon completion of the rental units Brutger Companies, Inc. agrees to the assessment rate necessary for the tax increment financing and agrees not to contest the assessed value. Commissioner Theis requested a clarification of the assessment agreement. Ms. Portwood pointed out that the assessment agreement provides that the developer guarantees enough money for the tax increment finance ng to pay off the project. She 4 -11 -53 -2- a "a added that additionally, regardless of how the assessor assesses the property, the developer cannot challenge the assess ed value if it would create a short fall for the tax increment financing. Discussion continued re_ardi.n., the issues of financin and the HRA Director €' g g explained that the estimate on the project is that the tax increment will pay off the project cost within 12 to 15 years. He added that this is a conservative estimate which does not allow for any inflation, and that the obligations could and will likely be paid off earlier. Commissioner Lhotka requested additional information on the marketing plan. The ERA Director explained that the ERA can approve or can authorize the HRA Director to approve the marketing plan after the HRA has reviewed it. He added that, if the units are not marketed to individuals 55 and over, the developer will be required to pay between -,2,000 and M OOO per unit . He explained this range is given because the final condemnation costs on the project are not known. Commissioner Lhotka then inquired what the total cost of the City would be for the project. The HRA Director explained the tax increment will repay the bonds sold for the project at a cost of $850,000 to $900,000. He pointed out that this includes the principal and interest which will be paid by the tax increment. He added that there are no out of pocket costs to the City. He added that the project receives the tax increment created by the new development, and that the tax increment does not go to other taxing jurisdictions but they continue to receive the same amount of taxes from the tax increment district as they had been receiving prior to construction of the project. Commissioner Theis inquired if there were any stipulations in the contract regarding the use of local labor on the project. The HRA Director explained there is a nondiscrimination provision o work with local people if at all s in the contract, and that he believes the g y ., contractor will enerall tend e e e te o t possible. H explained the construction schedule provides occupancy nine months after the beginning of construction. Commissioner. Hawes inquired whether the sales of the units would be open to any realtors. The T-M Director explained the developer will select one realtor to market the townhouses and condominiums but with regard to the resale of single family homes there would be no restrictions on choices of realtors. He added that the developer will guarantee a purchase price if the single family home cannot be sold in any other way. RESO LUTION NO. 83 -10 Member Bill Hawes introduced the following resolution and moved its adoption: RESOLUTION OF THE HOUSING AND REDFVFLOPN1FNT AUTHORITY IN AND FOR THE CITY OF BR001QYN CENTER AUTHORIZING THE EXECUTION OF A CONTRACT IFOR PRIVATE DES FMK The motion for the adoption of the foregoing resolution was duly seconded by member Rich Theis, and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene I2iotka, Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. 83- Nember.Gene Lhotka introduced the following resolution and moved its adoption: 4 -11 -83 _.3- RESOLUTION OF THE HOUSING IJID RFDLVT'OWE.NT AUTIiORITY IT! AND FOR TIII� CITY OF BROOI CENTIIR AUTHO:AIZITdG `E1 CITY TO 13 l' THE CONSTRUCTIOP? GIB' PROTECT IMPROVEMENTS The motion for the adoption of the foregoing resolution was duuy seconded by member Rich Theis, and upon vote being taken thereon, the following voted in favor thereof: Dean Eyquist, Gene Lhotka, Celia Scott, Pill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. RESOL NO. 83 -12 Member Celia Scott introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING A TFTIPORARY IMPROV - 2 , MT LOAN FROM THE CITY_ OF BROOKLYN CENTER LNVEST T� M FUND The motion for the adoption of the foregoing resolution was duly seconded by member Bill Hawes, and upon vote being taken thereon, the follo -ring voted in favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, Bill Hawes, and Rich Theis; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. RESOLUT NO. 83 -13 Member Gene Lhotka introduced the following resolution and moved its adoption: REESOLUTION APPROVING- Th= (3) BROO=T CET HOUSING REi GP.ANTS The motion for the adoption of the foregoing resolution was duly seconded I)y member Celia Scott, and upon vote being taken thereon, the following voted in favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, Lill Hawes, and Rich Theis.; and the following voted against the same: none, whereupon said resolution was declared duly passed and adopted. AD JOUR11MIT There was a motion by Commissioner Theis and seconded by Commissioner Hawes to adjourn the meeting. Voting in favor: Chairman Nygaist, Commissioners Lhotka, Scott, Hawes, and Theis. Voting against: none. The motion passed. unanimously. The Brooklyn Center Housing and Redevelopment Authority adjourned at 7 :35 P.m. Mayor 4 -11 -83 -4- - u Member introduced the following resolution and moved its adoption: RESOLUTION P1O. _ RESOLUTION APPROVING SIX (6) BROOKLYN CENTER HOUSING REHABILITA GRA NTS WHEREAS, the Brooklyn Center Housing &Redevelopment Authority has established a Horne Rehabilitation Grant Program to assist low and moderate income individuals in the maintenance and repair of their homes; and WHEREAS, the Brooklyn Center Housing & Redevelopment Authority has received six (6) applications from an eligible individual to receive grant assistance; and WHEREAS, an inspection by the City of Brooklyn Center has determined that the work is necessary and appropriate under the Brooklyn Center Housing Rehabilitation Grant Program; and WHEREAS, the estimated cost of the proposed grant applications are estimated at $49,500.00. NOW, THEREFORE, BE IT RESOLVED by the Brooklyn Center Housing & Redevelopment Authority that: 1. The Brooklyn Center housing & Redevelopment Authority does approve the six (6) housing rehabilitation grant applications as recommended by the staff. 2. That the work be performed as recommended in the confidential memorandum dated June 6, 1983, and that the applicants be directed to obtain the necessary bids for staff review and approval. 3. The project shall not exceed the grant limits of $8,250 per house. 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