HomeMy WebLinkAbout1983 04-11 HRAP HRA AGENDA
CITY OF BROOKLYN CENTER
APRIL 11, 1983
7:00 p.m.
1. Call to Order
2. Roll Call
3. Invocation
4. Approval of Minutes - March 14, 1983
- March 28, 1983
5. Public Hearing Regarding Disposition of Property by the Brooklyn Center
Housing and Redevelopment Authority in Accordance with Minnesota Statutes,
Section 462.525 of the Municinal Housing and Redevelopment Authority Act,
Minnesota Statutes, Chapter 462.411 et. sea.
-The public hearing was continued to this evening from the March 28, 1983
HRA meeting.
a. Resolution Establishing and Designating a Housing Development Project
by the Brooklyn Center Housing & Redevelopment Authority Pursuant to
the Provisions of Minnesota Statutes, 462.411 et. sea.
b. Resolution Approving Disposition, of Property by the Brooklyn Center
Housing & Redevelopment Authority
C. 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.
d. Resolution of the Housing & Redevelopment Authority in and for the
City of Brooklyn Center Authorizing the City to Undertake the Con-
struction of Public Improvements
e. Resolution Authorizing a Temporary Improvement Loan from the City of
Brooklyn Center. Investment Fund
This resolution accepts the loan authorized by the City Council
on March 28, 1983 for Interim Financing of Brookwood Improvement
Projects 1983 -04 and 1983 -05
6. Resolution Approving Three Housing Rehabilitation Grants
7. Adjournment
MEMORANDUM
TO: Gerald G. Splinter, City Manager
FROM: Brad Hoffman, Administrative Assistant
DATE: April 6, 1983
SUBJECT: HRA Grant Applications
The following grant applications are recommended for HRA approval. The information
contained in this memo is private and not available to the general public.
i
1. Paul C. Udvig, 5510 Colfax Avenue North. The following work is
recommended:
a. Replace front entry door, repair frame as needed, weatherstrip,
and finish with paint or staining as needed.
b. Weatherstrip rear door.
c. Replace all existing windows with new wood double hung units,
and finish with paint or staining as needed.
d. Install new aluminum combination storm and screen window,
pre- finished.
e. Install new aluminum combination storm doors, front and rear,
pre- finished.
f. Change swing of bath room door to swing toward wall next to
vanity, instead of toward water closet.
g. Replace bath room floor with vinyl sheet flooring.
h. Remove caulking around tub and recaulk around tub at wall and
floor. Secure existing marlite paneling and caulk as needed
for good waterproof seal.
i. Patch and repair living room wall and ceiling (restiple or paint
ceiling as needed to match best as possible)
j. Remove one heat duct in living room and patch floor best as
possible. Install floor register in remaining heat duct.
k. Reinsulate walls with blown -in fibre glass, mineral wool or
cellulose.
1. Reinsulate attic with blown -in fibre glass - approximately 10
or mineral wool - approximately 7 ", or cellulose - approximately
C 11
M. Insulate rim joist where accessible.
n. Plumbing items -
1. replace bath tub faucets
2. repair laundry tub faucets from leaking
3. correct waste line in basement (remove pail and cap off)
4. correct venting in attic to exterior
5. correct vibration in hot water line
6. cap off gas piping by old well and secure line to wall
7. remove old well piping and pressure tank
8. correct to code any other plumbing deficiencies noted
-2-
o. Replace front concrete entry steps (reuse wrought iron railing).
p. Replace sidewalks front and rear (minimum 3 foot wide).
q. Electrical iteras -
1. upgrade service from 60.amp to 100 amp service
2. install outlet on wall by kitchen range and correct
wiring to range hood
3. install G.F.I. outlet in bathroom
4. install electric smoke detector
r. ALTERNATE: Replace furnace with energy efficient forced air type.
2. Florence Helgren,5344 Fremont Avenue North. The following work is
recommended:
a. Weatherstrip front and rear doors.
b. Reglaze broken windows.
c. Replace bath room floor with vinyl sheet.
d. Reinsulate attic with 8" mineral wool, or 8" cellulose, or
10" fibre glass. Remove existing wall in attic over front
entry addition. (These should achieve approximately R -40)
e. Insulate rim joist.
f. Reroof - remove existing asphalt shingles.
g. Provide knee bracing to deflecting rafters, or reinforce
rafters for evenness as best possible. Install collar ties
at each rafter near ridge.
h. Plumbing items -
1. correct drum trap in basement
2. replace laundry tub faucets
3. - repair leaking kitchen faucets
4. repair trap in bath room sink
5. remove existing caulking and recaulk and seal around
bath tub
6. repair exterior water spigot from leaking
i. Replace gravity furnace with energy efficient forced air.
(Use all existing duct work where possible)
3. George Dolan, 5427 4th Street North. The following work is recommended:
a. Weatherstrip front and rear doors.
b. Repair all broken window panes.
c. Replace 3 missing basement storm windows.
d. Reinsulate attic rafters with paper faced or foil faced
batt insulation from eaves to knee wall over existing insulation.
Cut slits in existing vapor barrier of existing insulation.
e. Install 4 soffit vents on front and 4 on rear of house.
f. Install continuous ridge vent on roof and close up gable
end louvers.
g. Reinsulate walls with blown -in mineral wool, cellulose,
or fibre glass.
h. Plumbing items -
1. repair leaking faucet in kitchen sink
Z. replace laundry tub faucets
3. unplug sewer line
4. repair or replace leaking gate valves on water lines -
including at water meter
5.. replace flexible gas pipe to kitchen range with copper
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i. Electrical items -
1. increase 60 amp to 100 amp service
2. correct basement bathroom wiring
3. install G.F.I. in lst floor bathroom
4. install electric smoke detector on 1st floor and
2nd floor at head of stairs
j. Replace sidewalk on south side of house and around to front
steps. (front walk is ok)
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`rhe P, ooKIY ',enter housing and Re.le, - -l.opglent Authority met in special session and
wr ; called to o ~der by Chairman Dean Iygai: t at 7:00 p.m.
ROLL CALL
Chai^man Dean iTyquist, Ca rmissioners Gene Ulotka, Celia . 7cott, and Bill I1avve�,.
Also present were ERA Direr tor. 2A'Dr ld plirter, Director of Public Works Sy W arren ,
,
c �, , H a .• n'L? ,z Tnzipectlon iron �Tarren j
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I Director o P
Dire of r lnance � �.,,1 , Lo1mI_ znu, D1
:si4 °tant City i ig inee» .T rn Grube, and Administrative Assistants Brad Hoffman, and
Toy„ Bublitz.
Commissioner Theis was not present at the meeting.
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The invocation was offered by Pastor Bailey of Brooklyn United Methodist Church.
APPROVAL OF MINUTES - FEBRUt�RY 28, 1983
There w°a. a rriot.iori ,�y Commissioner Ihotka and seconded by Commis eo
Commissioner Ha,- to..
approve the .minutes of the February 28, 1 9 , 93 Housing and Redevelopment Authority
meeting as submitted. Voting in favor: Chairman lquist, Commissioners Lhotka,
Scott, and Hawes. Voting against: none. The motion passed.
The City Attorney arrived at 7:05 p•m•
p BILIC HEARING REGARDING THE DISPOSITION OF PROPERTY BY THE BROOKLTJ CENTER HOUSING
ACCOi A j'C11 �t IT M� ^ ?r EnOTA STAT L?mE S SE CTI rI �1E�'_ . �OF
Ti T: 1
THE RUNICIPAL HOUSING & REDEVKL PIti`I K AUTHORITY ACT, MINNESOTA STATUTES, CHAPTM,
462 ET. SEQ.
The PM Director explained that the final contract documents for the proposed
Housing Development Project were not yet finalized and recorT"Iernded the Authority
open the public hearing and continue it to March 28, 1983•
Chairman Nyquist opened the mee i; i_ng for the purpose of a pifolic hearing regarding
the disposition of property by the Brooklyn Center Ho_-sing & Redevelopment
Authority in accordance with Minnesota Statutes, Section 462.525 of the Municipal
Housing C"cRedevelopment Authority Act, I irunesota Statute,,, Chapter 462.411 et. seq.
No one appeared to 1 IL at the public hearing and Chairman Nyquist entertained a
motion to continue the public hearing to March 28, 1983.
There was a motion by Commissioner Scott and seconded by Commissioner Hawes to
continue the public hearing regarding the disposition of property by the Brooklyn
Centt�r Ilousingand Redevelopment Authority in accordance with Minnesota Statutes,
Section 4,62.525 of the Municipal Housing: Redevelopment Authority Act, Minnesota
Statutes, Chapter 462.411 et. seq. , to March 28, 1 983 at 7:00 p•rn- Voting in favor:
Chairman Nyquist, Lhotka, Scott, and Hawes. Voting against: none.
The motion passed.
3 -14 -83 -1-
CONTRACT POP ADM1NTISTRATI_VE SERV._ BETY METR OPOLITAN COMIC IL NMI) THE ROOKI y
11 Th e tt l pp� ,� T *{ n (� I T T i r
C l 11 T�it� I.l.o t Y TOr & 1.li� 'lT-QPMi� ' ' , , 1 ' AV�lll� �f�l,T
Th HRA Director explained the contra for administrative services would provide
administrative services for the City's housing rehabilitation program and would be
provided by the Metropolitan IT_RA.
There was a motion by Commis:_;ioner Lhotka and seconded by Commissioner Scott to
approve the contract for administrative services between the Metropolitan Council
and the Brooklyn Center Housing & Redevelopment Authority. Voting in favor:
Chairman Nyquist, Commissioners Lhotka, Scott, and Hawes. Voting against: none.
The motion passed.
RESOLUTION APPR OVING OTC ', HOI:SIN R GRANT
Commissioner Lhotka inquired 1what the three alternatives were with regard to the
items included in the grant application. Administrative Hoffman explained that
the three alternates were items which were recommended for rehabilitation by the
City's building inspector and are items that will be accomplished if the cost of the
work does not exceed the limits of the grant after the other repair items are
accomplished.
RESOL'UT'I T TO . 83 -4
Commissioner Celia Scott 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
C
:mm_ ssicnar Bill. Hawes, and upon vote being taken thereon, the following voted in
favor thereof: Dean Nyquist, Gene Lhotka, Celia Scott, and Bill Hawes; and the
following voted against the same: none, whereupon said resolution was declared
duly passed and adopted.
AD JOUPIVI�:��'TT
There was a motion by Commissioner Hawes and seconded by Commissioner Scott to
adjourn the meeting. Toting in favor: Chairman Nyquist, Commissioners Lhotka,
Scott, and Hawes. Voting against: none. r'� motion passed. The Broold -yn
Center Housing and Redevelopment K thori ty adjourned at 7:06 p.m.
Chairman
I
3- 14..83 -2--
MINUS OF THE PROCEEDINGS OF THE CITY COUNCIL
OF THE CITY OF BROOKLYN CENTER IN THE COUNTY
OF HENNEPIN IN THE STATE OF MINNESOTA
REGULAR SESSION
MARCH 14, 1983
CITY HALL
CALL TO ORDER
The Brooklyn Center City Council met in regular session and was called to order by
Mayor Dean Nyquist at 7:06 p.m.
ROLL CALL
Mayoreaan Nyquist, Councilmembers Gene Lhotka, Celia Scott, Bill Hawes, and Rich
Theis. Also present were City Manager Gerald Splinter, Director of Public Works Sy
Knapp, Director of Finance Paul Holmlund, Director of Planning & Inspection Ron
Warren, City Attorney Richard Schieffer, Assistant City Engineer dim Grube, and
Administrative Assistants Brad Hoffman, and Tom Bublitz.
OPEN FORUM
Mayor dyquist noted he had received a request from Mr. Ed Dilley, 6845 North York
Place to use the Open Forum session this evening.
Mayor Nyquist recognized Mr. Dilley who stated that he was upset over the proposed
condemnation of land in the area of his townhouse, and that because of the
condemnation of land the utilities in his development would have to be moved and the
roads resurfaced. He stated he was disturbed that the negotiations have been going
on with Mr. Sheehy and the City regarding the condemnation.
The City Manager stated that it was his understanding that Mr. Sheehy is the owner of
record for the property Mr. Dilley is referring to, and that he would defer to the
City Attorney who has been involved with the negotiations with Mr. Sheehy. The City
Attorney explained that the title was reviewed and that the county records show that
Sheehy Construction was the owner of the property.
Mr. Dilley stated that he was concerned over the road realignment and who would be
responsible for relocating the utilities. Mr. Dilley stated that he was upset that
he and the other owners in the townhouse development had not been contacted
regarding the plans for the roadway realignment. The City Attorney commented that
apparently Mr. Dilley was under the belief that the Homeowners Association owns the
property in question, but that since the development was not completed, the
developer would normally retain control over the property until the majority of the
property was developed.
In response to a question from Councilmember Lhotka, the Director of Public Works
explained that the item in question concerns realignment of Shingle Creek and 69th
Avenue in the area of their intersection. He explained that, in conversations with
the Assistant City Engineer, Mr. Dilley was told that the project does not now have a
specific schedule for construction but that acquisition of the necessary right of
way would necessarily come before any construction program could be established.
He added that at this time he sees no need to relocate utilities servicing the
existing townhouses, although he added, the roadway realignment may affect the
vacant lots in the development depending on how the builder wants to develop the
lots.
3 -14 -83 -1-
The Director of Planning & Inspection stated that Mr. Rod Bernu has filed a site plan
application for the area, and that the staff has told Mr. Bernu that the staff would
not process the application unless he allowed for the roadway realignment in the
site plan. As a result, he pointed out that Mr. Bernu and Mr. Sheehy spoke with the
Homeowners Association concerning the roadway realignment and the site plan.
The Assistant City Engineer commented that he remembers talking to Mr. Dilley's wife
and stating that specific plans for the roadway realignment are yet to be developed.
He added that he discussed the acquisition of right of way with Mr. Dilley's wife and
explained that this was an immediate action.
Councilmember Scott inquired whether the City held a public hearing on this item.
The City Manager explained that no formal notice was issued but a meeting was held
and people from the neighborhood did attend. He added that the City did reserve
right of way in the Earle Brown Farm Estates Townhouse Development for the roadway
realignment.
Councilmember Theis stated that he recalls that the roadway realignment was
discussed during consideration of the Earle Brown Farm Townhouses Development. He
added that the Council passed action giving the authority to staff to contact the
proper state agencies regarding the roadway realignment affect on the Palmer Fake
nature area. The Director of Public Works commented that he is sure the Council
record will also show that the staff was given authorization to proceed with
acquisition of right of way for the project.
Mr. Dilley stated that he did not appreciate the fact that he was not notified of the
project. Councilmember Theis requested the staff to set up a meeting with Mr.
Dilley and review the plans for the roadway realignment. Mayor Nyquist explained
to Mr. Dilley that the staff will meet with him and other interested members of the
Homeovr7ners Association to discuss the roadway plans. Mr. Dilley explained that he
would be at the Planning Commission meeting on Thursday evening anyway, and that the
staff could review the plans with him that evening.
Mayor Nyquist commented on the tragic drowning which took place in Shingle Creek on
Friday. He added that apparently the only positive aspect of the situation was that
the emergency services performed very well. He added that he had received calls
from City residents inquiring whether anything could be done. He asked the City
Manager to review the situation concerning what has been done to minimize the risk of
any possible future incidents.
The City Manager reviewed the construction of Central Park with regard to minimizing
the risk of problems with the creek. He commented on a number of items with regard
to educating young children with regard to the hazards of venturing onto thin ice and
water safety in general.
CONSENT AGENDA
Mayor Nyquist inquired if any of the Council members requested any items removed
from the Consent Agenda. No Council members requested any items removed from the
Consent Agenda.
APPROVAL OF MINUTES - FEBRUARY 28, 1983
There was a motion by Councilmember Lhotka and seconded by Councilmember Scott to
approve the minutes of the City Council meeting of February 28, 1983 as submitted.
Voting in favor: Mayor Nyquist, Council-members Lhotka, Scott, Hawes, and Theis.
Voting against: none. The motion passed unanimously.
3 -14 -83 -2-
LICIjINTSIS
There was a motion by Counciln -ember Ibotka and seconded by Councilmember Scott
to approve the following list of licenses:
CIGARETTE LICENSE
ARA Services 2830 N. Fairview
Northwestern Bell 5910 Shingle Cr. Pkwy.
FOOD ESTABLISHMENT LICENSE
Brooklyn Center Community Center 6301 Shingle Cr. Pkwy.
GASOLINE SERVICE STATION LICENSE
Northwestern Bell 6540 Shingle Cr. Pkwy.
ITINERANT FOOD ESTABLISHMENT LICENSE
B.C. Jaycee Women 5900 Humboldt Ave. N.
Evergreen Park Elementary APT 7200 Dupont Ave. N.
MECHANICAL SYSTEM'S LICENSE
A -abc Appliance & Heating, Inc. 611 W. Lake St.
Air Comfort, Inc. 3944 Louisiana Circle
All Season Comfort, Inc. 55 Mound Ave.
C.O. Carlson Air Conditioning Co. 709 Bradford Ave. N.
Frank's Heating & Air Cond. 3107 California St. N.E.
Golden Valley Heating & Air Cond. 5182 W. Braodway
Hutton & Rowe 717 VanBuren St.
Kraemer Heating 6151 Yucca Cricle
Lakeland. Sheet Metal, Inc. Rte 2, Box 273
Marsh Heating & Air Cond. 6248 Lakeland Ave. N.
Midwest Heating & Air Cond. 9809 Valley Forge Ln.
Modern Heating & Air Cond. 2318 lst St. N.E.
Royalton Heating & Cooling Co. 4120 85th Ave. N.
SBS Mechanical, Inc. 7160 Madison Ave. W.
Standard Heating & Air Cond. 410 W. Lake St.
Thompson Air Conditioning 5115 Hanson Court
Ray Welter Heating Co. 4637 Chicago Ave.
Fred Vogt & Co. 3260 Gorham Ave.
Yale, Inc. 3012 Clinton Ave. S.
NONPERISHABLE VE MACHINE LICENSE
ARA Services 2830 N. Fairview
Northwestern Bell 5910 Shingle Cr. Pkwy,
PERISHABLE VENDING MACHINE LICENSE
ARA Services 2830 N. Fairview
Northwestern Bell 5910 Shingle Cr. Pkwy.
SPECIAL FOOD HANDLING LICENSE
LaBelle's 5925 Earle Brown Dr.
Weight Loss Med. Center 6040 Earle Brown Dr.
3 -14 -83 -3-
Voting in favor: Mayor Nyquist, Councilmembers Lhotka, Scott, Hawes, and Theis.
Voting against: none. The motion passed unanimously.
MAYOR'S PROCLAMATION FOR MS. MASAMI IIDA,
.ayor 'yquis presen e proc ama yon -ohs. Masami Iida of Osaka, Japan declaring
her to be an honorary citizen of the City of :Brooklyn Center. He explained that
Masami, the Brooklyn Center Rotary Club's foreign exchange student, has been an
asset to the City of Brooklyn Center and Brooklyn Center High School where she has
been enrolled for the past year. He expressed a personal interest in Masami since
she spent five months with the Mayor's family.
Ms. Iida explained to the Council and members of the audience that she will miss
everyone and that she hopes to come again and visit.
PRESS ?TATION OF AWARD TO CITY COUNCIL FROM MINNESOTA NATIONAL WATER SKI TEAM
Mr. Hank Longo, representing the Minnesota National Water Ski Team, presented a
plaque to the City Council which expressed thanks for allowing the water ski team to
ski on Twin Lake. He explained that the Minnesota team set a new state record and
came in second in the Midwest competition. He added that the team also set a world
stunt record in Brooklyn Center and then again in Cyprus Gardens, Florida.
PUBLIC HEARING_ REGARDING THE DESIGNATION OF A HOUSING DEVELOPMENT PROJECT PURSUANT
TO MIOTA STATUTES, SECTIOY 402.411 LT . S
T?�II;S EC. , THE MUNICIPAL HOUSING &
R P1 ACT AND THE E TABLIS?DIII ?T l F T INANCING DI, 2' ICT
PURSUAT TO MI q, 2TATUTES, SECTIOTvT 273.71 TO 273.78 INCLUSIVE, THE TAX
INCRE1=7 FINANCING ACT
The City Manager explained that since the contract between the City and the
developer has not yet been finalized., he recommended opening the public hearing and
continuing it until March 28, 1983.
Mayor Nyquist opened the meeting far the purpose of a Public Hearing Regarding the
Designation of a Housing Development Project, Pursuant to '.Minnesota Statutes, -
Section 462.411 et. seq., the Municipal Housing & Redevelopment Act and the
Establishment of Tax Increment Financing District Pursuant to Minnesota Statutes,
Section 273.71 to 273.78 Inclusive, the Tax Increment Financing Act. No one
appeared to spear at the public hearing and the Mayor entertained a motion to
continue the public hearing until March 28, 1983-
There was a motion by Councilmember Scott and seconded by Councilmember Hawes to
continue the Public Hearing Regarding the Designation of a Housing Development
Project, Pursuant to Minnesota Statutes, Section. 462.411 et seq., the Municipal
Housing & Redevelopment Act and the Establishment of Tax Increment Financing
District Pursuant to Minnesota Statutes, Section 273.71 to 273.78 Inclusive, the
Tax Increment Financing Act until the regularly scheduled Council meeting on March
28, 1983.
PLANNING COMMISSION ITEMS
PLANNING COMMISSION — A �S PPLICATIO .7 N v NO. — � 8 T 003 SUBMITTED � TILE CITY OF BROOKLYN CE
TO R' F I� Lii_:. Vr VUit �� '7t tu aL
HIGH WAY �W • � The City Manager explained Planning Commission Application No 83003 was tabled at
the Commission's January 27, 1983 meeting and referred to the Southeast
-4-
3 -14 -83
Neighborhood Advisory Group for review and comment. lie added that the Planning
Commission recommended an amendment to the comprehensive plan through Planning
Commission Resolution No. 83 -1 and approval of the rezoning through Planning
Commission Resolution No. 83 -2 at its March 3, 1983 meeting.
The Director of Planning & Inspection presented and reviewed for Council members
pages 3 through 5 of the minutes of the January 27, 1983 Planning Commission meeting
and pages 1 through 9 of the Parch 3, 1983 Planning Commission meeting minutes. He
also reviewed the Planning Commission information sheets prepared for the
application. The Director of Planning & Inspection then reviewed for Council
members Planning Commission Resolutions No. 83 -1 and 83 -2.
The Director of Planning & Inspection proceeded to review the location of the
subject parcel and noted that the existing zoning on the parcel is R3. He explained
the application is requesting that approximately one /half of the land be rezoned to
R6. He next reviewed a transparency of the preliminary plat of the area and
reviewed the zoning lines on the plat.
The Director of Planning & Inspection explained that, at its January 27, 1983
meeting, the Planning Commission reviewed a letter from Mr. Brad Hoffman regarding
the rezoning request. He reviewed the letter for Council members and noted the
letter referred to a market study done under the City auspices which showed a need
for elderly housing in the City. He added that the City's Comprehensive Plan also
indicates a need for elderly housing.
With regard to the subject parcel, the Director of Planning & Inspection explained
that much of the land was owned by the Minnesota Department of Transportation, and
that the City Council had authorized condemnation proceedings to acquire the
property. He reviewed the Comprehensive Plan Amendment proposed in conjunction
with Planning Commission Application No. 83003,and also the proposed Council
resolutions including a Resolution Amending City Council Resolution No. 82 -55, and
a Resolution Regarding the Disposition of Planning Commission Application No.
83403•
PLANNING COTTIISSI APPLICATION N0. 83005 SUBMITTED BY BROO= CEITTER HOUSING AND
RE DEI'FLOPI AUTHOR FOR PRELITNINARY PLAT APPROVAL TO SUBDIVIDE INTO THREE LOT
AND DEDI RIGHT- OF -77 FOR TTORTH LILAC DRIVE FROM TIi� LAND AT THE SOUTITEE AST
QUADRANT OF I -94 A 1D HIGITWAY 100.
The Director of Planning & Inspection reviewed for Council members the proposed
preliminary plat and also the site plan prepared for Planning Commission
Application To. 83004. He explained that the project was comprised of three major
areas: Building B, a 65 unit three story plus rental building, Building A, a five
story 73 unit condominium, and 32 townhouses. He reviewed the parking plans for
each phase of the development. He noted that handicapped units will be available in
both Buildings A and B, and the townhouses. He added that Homeowners Associations'
would be created in both the townhouse development and the condominium building.
He explained the Associations' would be separate.
The Director of Planning & Inspection presented and reviewed for Council members
pages 6 through 8 of the March 3, 1983 Planning Commission meeting minutes, and the
conditions of approval recommended by the Planning Commission for Application Nos.
83405 and 83004.
Councilmember I,hotka asked what the distinction was between a condominium
association and a townhouse association. The City Manager explained that a
3 -14 -83 -5-
condominium association uses an as built survey and there is only a single lot for
all the units, whereas, a townhouse development shows individual_ lots. The City
Attorney commented that there really is not a great deal of difference in the two
associations but that they are different ways of describing real estate.
The Director of Planning & Inspection explained the townhouse development will be
similar to the condominium arrangement, in that owners won't actually own the land,
but it will be controlled by the condominium association. He added that this is why
the lots and blocks are not being proposed in conjunction with the application.
In response to Councilmember Lhotka's request for further clarification, the
architect for the project stated that, for financing purposes, the condominium
documents were necessary for Building A, and that legally these documents are not
much different for townhouse developments and are required for financing under FHA
mortgages. He added that the developer chose to go with the same division for the
townhouses as for the condominiums. He added that the developer is going through
one division of HUD for Building A, and that it was beneficial to continue with the
same governmental body for the townhouses.
The Director of Planning & Inspection presented and reviewed for Council members
pages 8 and 9 of the March 3, 1 983 Planning Commission minutes regarding the
recommended findings of the Planning Commission concerning the elderly development
to be financed by tax increment financing.
Councilmember I,hotka asked the staff to comment on how the findings will be
implemented. The City Manager explained that the City will go as far as possible
with regard to enforcing the conditions to the extent the FIB". requirements will
allow. Councilmember Lhotka then asked how the elderly qualifying for the project
in Brooklyn Center will become informed in an understandable way. Administrative
Assistant Hoffman explained that the City will do a number of things, noting that one
which has already been accomplished is the collecting of names of people interested
in the r r
_o'e t. H
c He noted ed 2
80 names have n
av been cone In addition collected so far. n t
p
J
0 o the
list of names, he stated that the direct mailings will be sent to people applying for
senior citizen sewer rates.
The City Manager stated that he believes most of the people the staff has talked to
regarding the project are quite knowledgeable with regard to the living arrangement
presented by this type of a project. Councilmember Lhotka asked when the project
will be marketed. Administrative Assistant Hoffman stated that it is still
proposed for the first part of May of this year.
Mayor Nyquist recognized Mr. Phil Cohen who stated that the developer has suggested
that when the project is ready to market, an open house could be held at Earle Brown
School r r
0o for the people n the pep o waitin list and in the general neighborhood to give
them an opportunity to review the plans.
Mayor Nyquist opened the meeting for the purpose of a public hearin on a Resolution
Amending City Council Resolution No. 82 -255 (Comprehensive Plan Relative to R3
Zoned Land at the Southeast Quadrant of i -94 and T.H. 100. He inquired if there was
anyone present who wished to speak at the public hearing. No one appeared to speak
and he entertained a motion to close the public hearing.
There was a motion by Councilmember Theis and seconded by Councilmember Scott to
close the public hearing on a Resolution Amending City Council Resolution No. 82 -255
3 -14 -83 -67
(Comprehensive Plan) Relative to R3 Zoned Land at the Southeast Quadrant of I -94 and
T.H. 100. Voting in favor.: Mayor. Nyquist, Councilmembers Lhotka, Scott, Hawes,
and Theis. Voting against: none. The motion passed unanimously.
RE SOLUTION NO. 83 -43
Member Bill Hawes introduced the following resolution and moved its adoption:
RESOLUTION AID 1 CITY COUNCIL RESOLUTION NO. 82 -255 (COMPRE1�TSIVE PLAN)
RELATIVE TO R3 ZOI D LAND AT THE SOUTHEAST QUADRANT OF I -94 AND T.H. 100
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.
Mayor Nyquist opened the meeting for the purpose of a public hearing on a Resolution
Regarding the Dispositi on of Planning Commission Application No. 83003 Submitted by
the City of Brooklyn Center. He inquired if there was anyone present who wished to
speak at the public hearing. No one appeared to speak and he entertained a motion to
close the public hearing.
There was a motion by Councilmember Hawes and seconded by Councilmember Theis to
close the public hearing on a Resolution Regarding the Disposition of Planning
Commission Application No. 83003 Submitted by the City of Brooklyn Center. Voting
in favor: Tlayor Nyquist, Councilmembers Lhotka, Scott, Hawes, and Theis. Voting
against: none. The motion passed unanimously.
RESOLUTION NO. 83 -44
Member Gene Lhotka introduced the following resolution and moved its adoption:
RESOLUTION REGARDING THE DISPOSITION OF PLANNING COMMISSION APPLICATION N0. 83003
SUBMITTED BY THE CITY OF BROOKLYN CENTER.
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 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.
PLANNIN CON DIISSION APPLICATION NO. 83004 SUBMITTED BY BLLTT \TTALS ARCHITECTURE FOR
SITE AND B UILDING PLP&T APPROVAL FOR A T11, P -PART FiOUSTI3G DELELOFI ?T, INCLUDT 6S
Tm ' 'C 73 CO.NDCXP" MUFFS, AND - �'0',',T1HOUSES AT TIE ',70 -AST QUADRAN1T OF I -
CAI, t�'dI� � _ —
AND HIGr±4�'
The City F'aszager. explained Application No. 83004 was tabled on January 27, 1983 and
was recommended for approval at the Plarch 3, 1983 Planning Commission meeting..
The City Council reviewed architectural renderings of the project presented by the
project architect.
3 -1 4 -83 -7-
The Director of Public Works reviewed the planned traffic circulation in the project
area and the plan to develop Lilac Drive to a two --lane street. The plans included an
interruption of Lilac Drive at Fremont which would be composed of a physical barrier
which would restrict traffic to neighborhood traffic, thereby, reducing the through
traffic. He proceeded to review the traffic forecast for traffic related to the
project.
The Director of Public Works reviewed discussions of traffic considerations held
during neighborhood meetings in the project area. He noted that the staff
conclusion was that keeping the volume of traffic on 62nd will best served by making
Lilac Drive a two -way. He noted the comments of one of the residents in the area,
Mr. Curtis Ward, 6131 Emerson Avenue North, who expressed a concern regarding
traffic volumes and proposed traffic patterns on the Lilac Drive -62nd Avenue
segment, and that he believes traffic volumes on 62nd Avenue will increase because
of the plans for Lilac Drive to become a two -way street.
Mayor Nyquist recognized Mr. jim Zemberg, 6114 Girard Avenue North, who expressed
appreciation to Mr. Phil Cohen and the City staff for the tremendous job they have
done with regard to the housing project. He added that he believes the project will
be an asset to the City.
ACTION ON PLANNING COP�a=SION APPLICATION NO. 83004
There was a motion by Councilmember Scott and seconded by Councilmember Hawes to
approve Application No. 83004 subject to the following conditions:
1. Building plans are subject to review and approval by the
building official with respect to applicable codes prior to
the issuance of permits.
2. Grading, drainage, utility and berming plans are subject to
review and approval by the City Engineer, prior to issuance of
permits.
3. A site performance agreement and supporting financial
guarantee (in amount to be determined by the City Manager)
shall be submitted prior to the issuance of permits to assure
completion of approved site improvements.
4• Any outside trash disposal facilities and rooftop mechanical
equipment shall be appropriately screened from view.
5. Building A and Building B are to be equipped with an automatic
fire extinguishing system to meet NFPA Standards and shall be
connected to a central monitoring device in accordance with
Chapter 5 of the City Ordinances.
6. Plan approval is exclusive of all signery which is subject to
Chapter 34 of the City Ordinances.
?. 8612 curb and gutter shall be provided around all parking and
driving areas.
8. Building permits for Buildings A and B are subject to
completion of the rezoning process (description of the land in
the Zoning Ordinance) and .filing of the plat at Hennepin
County.
3 -14 -83 -8-
9. Plan approval acknowledges proof -of- parking for 40 spaces on Lot 2
(Building A) and 38 spaces on Lot 1 (Building B) . These parking stalls
shall be installed if the City determines that installed parking spaces
are insufficient to meet demand.
Voting in favor: Mayor Nyquist, Councilmembers Lhotka, Scott, Hawes, and Theis.
Voting against: none. The motion passed unanimously.
ACTION ON PLATZ11ING COILU- IISSION APPLICATION NO. 83005
Mayor Nyquist opened the meeting for the purpose of a public hearing on Planning
Commission Application No. 83005. He inquired if there was anyone present who
wished to speak at the public hearing. No one appeared to speak and he entertained a
motion to close the public hearing.
There was a motion by Councilmember Scott and seconded by Councilmember Lhotka to
close the public hearing on Planning Commission Application No. 83005. Voting in
favor: Mayor Nyquist, Councilmembers Lhotka, Scott, Hawes, and Theis. Voting
against: none. The motion passed unanimously.
There was a motion by Councilmember Lhotka and seconded by Councilmember Hawes to
approve Planning Commission Application No. 83005 subject to the following
conditions:
1. The final plat is subject to review and approval by the City
Engineer.
2. The final plat is subject to the provisions of Chapter 15 of
the City Ordinances.
3. Condominium association documents for Lots 2 and 3 are subject
to review and approval by the City Attorney.
4. The Brooklyn Center Housing and Redevelopment Authority shall
enter into a contract with the developer stipulating
condominium form of ownership for Lots 2 and 3 prior to final
plat approval.
5. Fremont Avenue North right- of -i %ay shall be legally vacated by
the City prior to final plat approval.
6. The preliminary plat shall be modified to indicate
appropriate utility easements in accordance with the City's
site utility plan prior to final plat approval.
7. Building permits shall not be issued until the final plat has
been filed at the County.
Voting in favor: Mayor Nyquist, Councilmembers Lhotka, Scott, Hawes, and Theis.
Voting against: none. The motion passed unanimously.
Mayor Nyquist recognized Dr. Duane Orn who stated that he was the Chairman of the
Citizens Committee which put the project together and included C.E.A.P. and the
Chamber of Commerce. He added that he would like to thank the Council for their time
3 -14 -83 -9-
and energies, and also the staff, including - the Director of Public Works, City
Manager, and Administrative Assistant Hoffman. He also thanked Mr. Phil Cohen and
the Planning Commission for their role in the project. He added that he thinks it
will be a good project and a great addition to the City.
RECESS
T ie rooklyn Center City Council recessed at 9:07 p.m. and reconvened at 9:23 p.m.
AN ORDINANCE AMENDING CHAPTER 35 OF THE CITY ORDINANCES CLASSIFYING CERTAIN LAND AS
BEING WITHIN THE R3 AI DISTRICT
m - r r
she_ e was a motion by Councilmembe Lhotka and ,seconded by Councilmembe Scott to
approve for first reading An Ordinance Amending Chapter 35 Regarding the Zoning
Classification of Certain Land. Voting in favor: Mayor Nyquist, Councilmembers
Lhotka, Scott, and Hawes. Voting against: none. The motion passed.
Councilmember Theis returned to the table at 9:24 P.M.
The Director of Planning & Inspection stated that the ordinance would be again
brought back to the City Council for a second reading when all the required documents
had been prepared.
RESOLUTIONS
The City Manager introduced a Resolution Receiving City Engineer's Report
Establishing Brookwood Development Improvement Projects Nos. 1983 -04 and 1983- -05
and Sidewalk Improvement Project No. 1983-06, Approving Plans and Specifications
and Ordering Advertisement for Bids (Contract 1983 -E).
Councilmember Hawes noted a correction in the resolution and explained that the
$444,000 stated in the resolution should total $463,690. The Assistant City
Engineer explained that the engineer's report is correct and the figure should be
$463,690.
RESOLUTION NO. 83 -45
Member Celia Scott introduced the following resolution and moved its adoption:
RESOLUTION RECEIVING CITY ENGINEER I S REPORT, ESTABLISHING BROOM DEVELOPMENT
IMPROVEMENT PROJECTS NOS. 1983 - A.ND 1983 -05 A11D SIDEWAIX IMPROVEMENT PROJECT NO.
1983 -06, APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISrTIETT FOR BIDS
( CONTRACT 1983 -E)
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 I1 iotka., 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 City Manager introduced a Resolution Authorizing Submission of the City of
Brooklyn Center Community Development Program to Hennepin County for Consideration
as Part of the Urban Hennepin County Community Development Block Grant Application,
in Accord with the Housing and Community Development Act of 1974, as Amended.
Councilmember Scott inquired who would be administering the program regarding the
purchase and rehabilitation of homes. Administrative Assistant Koffman stated
that he hoped the Housing Commission will pursue this project. Councilmember Scott
3 -14 -83 -10-
then asked whether there was any possibility of using Vo -Tech students to do the
actual rehabilitation work. Administrative Assistant Hoffman commented that this
would be an interesting concept and that essentially the City is acting as the
general contractor in the rehabilitation work, and that this could be a. good
approach and worth investigating as a. means to accomplish the program. He added
that the purchase of the home would have to be approved by the City Council.
Councilmember Theis expressed a concern over who would provide the expertise in
doing the rehabilitation work if the Vo -Tech were not available. The City Manager
replied that it would not be feasible for staff to do this type of work, and that it
would be necessary to use some type of professional assistance to do the actual
remodeling design and rehabilitation. He added that he would like to make the
project work since it would solve some of the housing problems in the City and would
help to maintain a good housing stock. He added that numerous items must be
explored before the project can get underway.
RESOLU IT 0. 83 -46
Member Tiawes introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING SUBMISSION OF THE CITY OF BROOKLYN CENTER CO1
DEVELOPTM1T PROGRAJil TO Ik� COUNTY FOR CONSIDERATION AS PART OF THE URBAN
HENNEPIN COUNTY CODiTIM�ITY DEV?E'LOPP r �T BLOCK GRANT APPLICATION, IN ACCORD WITH TIT
HOUSING AND C012 DEVELOP:N'IKfi;T ACT OF 1974 AS A1 TED
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 hlyquist, 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 City Manager introduced a Resolution Authorizing the Return of $65,000 in
Community Development Grant Funds to Hennepin Urban County. He explained that in
year VII of the Community Development Block Grant Program the City allocated $65,000
for the future construction of a senior citizen center, and since that time the local
area office of HUD has made a determination that the proposed project does not
benefit low and moderate income people, and is therefore, ineligible.
Councilmember Lhotka inquired whether the money could be used for other projects.
Administrative Assistant Hoffman commented that it is difficult to make use of
community development funds on worthwhile projects partly due to the HUD
regulations.
There was a general consensus among Council members to return the money to HUD with
the recommendation that the money not be spent elsewhere on other HUD projects.
RESOLUTION NO. 83 -
Member Gene Lhotka introduced the following resolution and moved its adoption:
RESOLUTION AUTHORIZING TIC RETURN OF $65, 000 IN COP DEVELOPKENT GRANT FUNDS
TO i EN TEPIN URBAN COUNTY
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 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.
3 -14 -83 -11-
i
Di of Planning
The City Manage introduced a Resolution Regarding ecution of an
Dispo Fx
Application No. 83001 and a Resolution Autho -izing Zwa Right
C eme App
r ent with Howe, Inc. Regarding Acquisition and Use of Excess Higt Y
Ag * _
W es'' satisfied with the
Councilmember Theis asked the o m m
City Attorney whether he was agreement
reemen. The City Attorney commented that he believed it was a good ag-
� t
- and Howe, Inc. Mayor Nyauist inquired whether Mr• Tom Howe was
between the City reement. Mr. Howe replied that he was satisfied with the
satisfied with the ag
agreement.
RESOLUTION NO. 83-48 resolution and moved its adoption:
Member Gene Lhotka introduced the following
RESOLUTION DENYING THE APPEAL OF HOWE, INC' seconded by member
,, adoption of the foregoing resolution visas duly - thereof
Rich Theis, and upon v
The motion for the adop r the following voted in favo-
ote being taken thereon, Bill. Hawes, an d Rich Theis; and wed
Gene Lhotka, Celia
Dean Nyquist, Gen Scott, esolution
win voted against the same: none, whereupon said r was duly p
follo g
and adopted.
RESOLUTION N0. 83-49 resolution and moved its adoption:
Member iB 11 Hawes Introduced the following �'�T �G��ING THE USE OF EXCESS
RESOLUTION AUTHORIZING THE EXECNC ION OF AN AGF
MN /DOT RIGHT-OF-WAY BY HOWE, solution was r duly seconded by member
The moton for the adoption of the foregoing resolution the following voted in favor
Celia Scott, and upon vote being taken thereon,
Celia Scott, Bill Hawes, and Rich Theis; an
thereof: Dean NYq uist, Gene Lhotka, ainst the same: none, whereupon said resolution was declare
the following voted a
duly passed and adopted.
introduced a Resolution Approving Portions of Classification List
The City Manage_ r
11 663 - NC ". ca nny brook Terrace
r'bed the parcel and explained that it was not a
The Director of Public Works reviewed the location of outlot � ' block 3, Elsens
for the City Council, and desc hich was lot 1
buildable site. He also reviewed ti lot tithe public sale of the parcel is being
City View second addition, and expl ned that
recommended.
r Theis commented that the lot in Elsens City View addition may be
Councilmembe Poor soil conditions
difficult to build on due to p
RESOLUTION NO. 83 -50 resolution and moved its adoption:
I.ember Gene Lhot troduced the following -
ING
A PORTION OF CLASSIFICATIOTZ LIST 11 663--:NC" FOR PRIVATE SALE
RESOLUTION APPROV
resolution was duly seconded by member
The motion for the adoption of takforegoing on the following voted in favor thereof
Bill Hawes, and upon vote being,
I
-12-
3 -14 -83
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 NO. 83 -51
Member Gene Lhotka. introduced the following resolution and moved its adoption:
RESOLU`.CION APPROVING A PORTION OF CLASSIFICATION LIST "663 -I`1C" FOR PUBLIC SALE
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 City Manager introduced a Resolution Approving Preliminary Layout Plan for the
Improvement of T.H. 252 from the Junction of T.H. 694 to the North Corporate Limits
and a Resolution Requesting T2; /DOT to Incorporate Certain Design Features into the
Construction Plans for the Improvement of T.H. 252 from the Junction of T.H. 694 to
the North Corporate Limits.
The Director of Public Works reviewed the preliminary layout plan for T.H. 252
development. He explained the state is asking the City for approval and that the
process is a two -step process, .first action by the City Council to approve the
preliminary plan, and second, a request to lDV /DOT_to include certain design features
in the plan. He explained the.staff recommendations are to approve the general
layout and then to be very specific in what the City wants in the construction plan.
The Director of Public Works reviewed the staff recommendations regarding design
features for the T.H. 252 construction. Councilmember r,hotka suggested adding
sidewalks into the request submitted to 1 The Director of Public Works
stated that it would be unlikely that PEi /DOT would include sidewalks in the
construction program but that they could be added to the request.
RESOLUTION NO. 83 -52
Member Bill Hawes introduced the following resolution and moved its adoption:
T - PRELIMINARY 'OUT PLAid FOR THE IMPROVEMENT ,'T T . H . 252 FROM THE
RESOLUTI01`. APPROVING PR.L�LIMIl`�ARY LAl
JUNCTION OF T.H 694 TO TIM NORTH CORPORATE LIMITS
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, Celia. Scott, Bill I ?awes, and Rich Theis; and the following
voted against the same: Gene Lhotka, whereupon said resolution was declared duly
passed and adopted.
RESOLU ION N0. 83 -
Member Celia Scott introduced the following resolution and moved its adoption with
the stipulation that the resolution be amended to include sidewalks in the designed
3 -14 -S3 -13-
features requested of MN /DOT for T.H. 252 improvements. The motion was seconded by
Councilmember Hawes.
RESOLUTION REQUESTING THE MINITESOTA DEPARTMENT OF TRANSPORTATION TO INCORPORATE
CERTAIN DESIGN FEATURES INTO THE CONSTRUCTION PLANS FOR THE IMPROVEMENT OF T.H. 252
FROM THE JUNCTION OF T.H. 694 TO THE NORTH CORPORATE LIMITS
The motion for the adoption of the foregoing resolution was duly seconded by member
Bill Hawes, 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.
PERMIT FOR USE OF EXPLOSIVES IN BROOKLYN CE1\TTFR BY LAyNE I .,INNESOTA COMPANY
There was a motion by Councilmember Lhotka and seconded by Councilmember Theis to
approve the permit for the use of explosives in Brooklyn Center by Layne Minnesota
Company with the following conditions:
1. The permit is issued to Layne Minnesota Company for use in the
development of Brooklyn Center Water Supply Well No. 9 only
and is nontransferable.
2. Only qualified and licensed personnel will be authorized to
undertake blasting operations.
3. Blasting operations shall be limited to the hours of 9:30 a.m.
to 5:00 p.m. Monday through Friday. No blasting operations
will be permitted on Saturday or Sunday.
¢. Use of blastin g materials to aid in drilling the well through
soil formations overlying the aquifer is prohibited.
5. The maximum shot size for any single detenation shall be 10
lbs.
6. Layne Minnesota Company shall notify the Brooklyn Center City
Engineer and Chief of Police 24 hours in advance of all
blasting operations.
7. Layne Minnesota Company shall notify all. residences within
200 feet, 24 hours in advance of all blasting operations.
8. Storage of blasting materials on the site is prohibited.
9. Layne Minnesota Company shall comply with all applicable
federal, state, and local codes governing the handling and use
of explosives.
10. Authorization to discharge explosives in the City of Brooklyn
Center granted under this permit shall expire December 31,
1983.
Voting in favor: Mayor Nyquist, Councilmembers Lhotka, Scott, Hawes, and Theis.
Voting against: none. The motion passed unanimously.
3 -14 -83 -14-
ORDII`
AN ORDITTAIICE AMENDING CHAPTER 35 OF THE CITY ORDINANC ESTABLISHING FhOOD PLAIN USE
'Il T E�
There was a motion by Councilmembe Scott and seconded by Councilmember Lhotka to
approve for- first reading An Ordinance Amending Chapter 35 of the City Ordinances
Establishing Flood Plain Use Permit Trees, and to set the public hearing date on the
ordinance for April 11, 1983 at 8:00 p.m. Voting in favor: Mayor Nyquist,
Councilmembers Lhotka, Scott, Hawes, and Theis. Voting against: none. The
motion passed unanimously.
AN ORDTITIANCE ADOPTITIG BY REFERII?CE THE TIORTT ^TEST SUB JOTITT CABLE C OI' 1177
�) N TI E; PREu R G PF dALTI ?] 0't I ` ATICI,S;� PR VIDIN t'OR �DIiITTISTRATION
AND F 1IFORCFDLE11T AED PERIODIC P JII',T
There was a motion by Councilmember Hawes and seconded by Councilmember Scott to
approve for first reading An Ordinance Adopting by Reference the Northwest Suburbs
Joint Cable Communications Ordinance: Prescribing Penalties for Violation:
Providing for Administration and Fnforcement and Periodic Review and to set the date
for public hearing on the ordinance for 8:00 p.m. on April 11, 1983. Voting in
favor: Mayor Nyquist, Councilmembers L'notka, Scott, Hawes, and Theis. Voting
against: none. The motion passed unanimously.
DISCUSSION ITEMS
TORNA 0 P REP - REVN ESS WElri - MARCH 20 TO MARCH 26 1 983
The City Manager reviewed a memorandum from the Chief of Police regarding Tornado
Preparedness Week and explained that the Governor of Minnesota will proclaim the
week beginning the 20th of March running through the 26th as Tornado Preparedness
Week, and that a state wide tornado drill will be initiated at 1 :10 p.m., Wednesday,
March 23, 1983 as a part of the preparedness week. He noted that the drill will not
be as extensive an exercise as the one carried out by the City two years ago. He
suggested that perhaps the newer Council members might want to review the City's
emergency preparedness plan in more detail with the City Manager and Chief of
Police.
POLICE DEPARTMENT TV SECURITY SYSTEM
The City Manager reviewed a memorandum from Administrative Assistant Hoffman
regarding the Police Department TV Security System. He explained that on February
10th of this year bid proposals were opened for a proposed closed circuit television
system for the police department, and that the bid proposals ranged from a low of
$4,052 to a high of $7,9 He added that the proposals were reviewed by W.H.
Montgomery, the City's Consultant, and it was recommended the low bid of Hoffman
Electric be rejected because it did not meet the specifications of the bid.
Additionally, he pointed out, a proposal from Security Products in the amount of
$4,182 was also rejected because it did not meet the specifications of the bid. He
stated that the staff recommendation is that the proposal of Alpha Video & Audio in
the amount of $4,218 be accepted. Be pointed out that the proposal of Alpha Video &
Audio is the lowest quote meeting the requirements of the bid specifications. He
added that the original estimate for the project was $10,000.
There was a motion by Councilmember Theis and seconded by Councilmember Lhotka to
accept the quote of Alpha Video & Audio in the amount of $4,218 for the closed circuit
television security system and the police department and noting that the bid of
Alpha Video & Audio was the lowest bid meeting the bid specifications. Voting in
favor: Mayor Nyquist, Council-members Lhotka, Scott, Hawes, and Theis. Voting
against: none. The motion passed unanimously.
3 -14 -83 -15-
YCINS FEE SCHEDULM
Councilmember 'Theis inquired when the last time the City's fee schedule was
adjusted. The Director of Planning <? Inspection noted that the planning fees were
adjusted in 1981 and that the remainder of City license fees were reviewed in 1976.
Councilmember Theis commented that it is probably time to take a. look at the City's
license fees again.
ADJOURNM
T
There was a motion by Councilmember Lhotka and seconded by Councilmember Scott to
adjourn the meeting. Voting, in favor: Mayor Nyquist, Council.members Zhotka,
Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously.
The Brooklyn Center City Council adjourned at 10:30 P.M.
Clerk Mayor
i
3 -14 -83 -16-
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
MARCH 28, 1983
CITY HALL
CALL TO ORDER
The Brooklyn Center Housing & Redevelopment Authority met in special session
and was called to order by Chairman Dean Nyquist 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 Finance Paul Holmlund, Director of Planning &
Inspection Ron Warren, Assistant City Engineer Jim Grube, City Attorney Richard
Schieffer, and Administrative Assistants Brad Hoffman and Tom Bublitz.
INVOCATION
The invocation was offered by Commissioner Celia Scott.
PUBLIC HEARING
Mayor Nyquist opened the meeting for the purpose of a public hearing regarding
disposition of property by the Brooklyn Center Housing & Redevelopment Authority
in accordance with Minnesota Statutes, Section 462.525 of the Municipal Housing
& Redevelopment Authority Act, Minnesota Statutes, Chapter 462.411 et. seq.
The HRA Director recommended that the public hearing be continued to April 11,
1983 at which time the contract with the developer should be finalized.
There was a motion by Commissioner Lhotka and seconded by Commissioner Theis
to continue the public hearing to April 11, 1983 at 7:00 p.m. Voting in favor:
Chairman Nyquist, Commissioners Lhotka, Scott, Hawes, and Theis. Voting against:
none. The motion passed unanimously.
RESOLUTION NO. 83 -7
Member Celia Scott introduced the following resolution and moved its adoption:
RESOLUTION ESTABLISHING JUST COMPENSATION FOR THE ACQUISITION OF CERTAIN
INTERESTS IN REAL ESTATE
The motion for the adoption of the foregoing resolution was duly seconded by
member Bill Hawes and upon vote being thereon, the following voted in
p n of e g taken the e e g
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.
ADJOURNMENT
There was a motion by Commissioner Hawes and seconded by Commissioner Theis to
adjourn the meeting. Voting in favor: Chairman Nyquist, Commissioners Lhotka,
Scott, Hawes, and Theis. Voting against: none. The motion passed unanimously.
The Brooklyn Center Housing & Redevelopment Authority ad at 7:08
, g P Y .m. J P
Chairman
MEMORANDUM
TO: Gerald G. Splinter, Ci Man
p � Y g
FROM: Brad Hoffman, Administrative Assistant
DATE: April 7, 1983
SUBJECT: Elderly Housing Project
On the 11th of April, the HRA and the Council will be asked to pass the resolutions
held over for the past month. In addition, the development contract with the
developer will also be before you for your appoval. In passing the resolutions and
with the acceptance of the contract, the Council /HRA will establish the tax increment
district, approve the transfer of land to Brutger and approve the start of the
construction of the elderly housing project.
The contract with Brutger contains a variety of clauses intended to protect the
HRA /City's position. While they can be explained in greater detail by our attorney,
I will try to provide a brief overview.
Relative to the tax increment district, which is our primary financing tool, the
developer is obligated to assure that the rental units generate 1/3 of the necessary
tax to make the bond payments. Relative to the other units, (condo's and townhouses)
the developer has a similar obligation through 1986. Note the developer will no
longer own the condo's or twonhouses, and by 1986 the entire project should have
been completed and paying full taxes for several years. Also, the developer, by
signing this contract, agrees to a specific assessed value for the properties built
assuring the HRA /City the increment, upon which our projects have been made, will be
realized.
In addition to tax increment guarantees, the developer will be required to provide
insurance during and after construction which again protects the HRA /City's position.
The developer must also provide proof of the necessary financing to undertake the
entire project prior to the transfer of title. The contract provides remedies for
default on morgages, limits encumbrances against the property and mandates the
actual development. The developer agrees to build 170 units upon the site. Brutger
will construct a rental building with 65 units, a condominium with 73 units and 32
townhouses. The rental and condo buildings will be fire sprinklered and include
many amenities that were highly ranked in our market survey including underground
parking, exercise rooms and so forth. In addition, Brutger is required to provide
a buy out option to Brooklyn Center residents selling their homes to reside in the
project. he is required to purchase up to a maximum of 20 homes. The number
represents out best guess as to the number of individuals that might exercise this
option. Also, Brutger will be paying the City's cost associated with our recent
mortgage issue. Mortgages under the program have been reserved for first time
home buyers buying homes from elderly residents moving into the project. Approxi-
mately 45 mortgages are reserved along with the use of that same money available
through participating banks.
The HRA /City reserves the right to approve the plans of the building in order to
assure the quality that we desire. The staff has been working with the developer
and has required a number of changes we felt were necessary to provide units to
our elderly residents that will make them very attractive. Overall, the buildings
being proposed, in my opinion, will be a very attractive addition to the City and
neighborhood.
The HRA has agreed to acquire the land for the building site and to provide utilities
to and within the site. Also, the HRA /City agrees to provide tax exempt financing
for the rental building. In turn the Authority agrees to sell the same to Brutger
at a write down, as per the contract, and finance that write down as well as other
costs associated with their project through the tax increment.
While the Authority is still in condemnation and bids are now being taken for the
utility work, I am optimistic that the costs for the project should come in under
our proposed budget unless something unforseen happens.
Our proposed budget of approximately $870,000 less an estimated $120,000 selling
price is easily handled over a 15 year tax increment of $138,000 annually. The
elderly project will generate $148,000 per year with no consideration being given
for inflation. Very conservatively, I believe that the 15 year district is more
than adequate to retire the indebtedness of the district. The HRA should be aware
that they have the option to create a 25 year district.
The final concern deals with the need to assure the fact that the units are in
fact elderly. First, only the rental and condo units are intended for elderly.
The townhomes are available to all ages, although a good number of elderly people
have expressed interest in them. We are not able to place age restrictions on the
sale or rental of the property (age discrimination laws and their effect on the
developer's ability to obtain financing). In lieu of this restriction, Brutger
will be required under the contract to develop and have HRA approval of a marketing
plan directed at elderly residents with specific initial targeting at Brooklyn
Center residents.
If marketing fails to fill the units, they could and would be made available to
individuals younger than 55. Should that happen under the provisions of the
contract, the Authority would be reimbursed, on a per unit basis, for the subsidy
to the project. The reimbursement would apply to the condo's and to the apartment
units.
Overall, I believe the contract before the Authority will provide the type of
elderly housing alternative we have sought. I am also of the opinion that marketing
the units to individuals 55 and over, based upon the numerous calls I have received,
will be successfully accomplished.
Member introduced the following resolution and
moved its adoption:
RESOLUTION NO.
RESOLUTION ESTABLISHING AND DESIGNATING A HOUSING DEVELOPMENT
PROJECT BY THE BROOKLYN CENTER HOUSING AND REDEVELOPMENT
AUTHORITY PURSUANT TO THE PROVISIONS OF MINNESOTA STATUTES,
462.411 ET. SEQ.
WHEREAS, the Authority desires to establish a housing development
project pursuant to Minnesota St atutes , Section 462.466 having boundaries
generally described as follows:
Beginning at a point formed by the intersection of the easterly
right -of -way line of Humboldt Avenue and the southerly right -of-
way line of North Lilac Drive; thence northeasterly along said
southerly right -of -way line of North Lilac Drive, to its intersection
with the easterly right -of -way line of Fremont Avenue; thence
northerly along said easterly right -of -way line of Fremont Avenue
to its intersection with the southerly right -of -way line of North
Lilac Drive and continuing northeasterly along said southerly
right -of -way line of North Lilac Drive to its intersection with
the westerly right -of -way line of Dupont Avenue; thence North along
said westerly right -of -way line of Dupont Avenue to its intersection
with the southerly right -of -way of U.S. Interstate 94; thence
westerly along said southerly right -of -way of U.S. Interstate
94 to its intersection with the easterly right -of -way of Minnesota
Trunk Highway 100; thence southerly along said easterly right -of-
way line of Minnesota Trunk Highway 100 to the northerly right-of-
way line of Humboldt Avenue; thence easterly along said northerly
right -of -way line of Humboldt Avenue to the point of beginning.
WHEREAS, in connection with the undertaking of certain projects by
the Authority pursuant to the Minnesota Municipal Housing and Redevelopment Act,
Minnesot Statutes Section 462.411 et . seq the approval by the Board of
Commissioners ( "the governing body ") of the Authority of the housing development
plan for the project area involved in such undertaking is required by the local
governing body before it will consider for approval said housing development
plan; and
WHEREAS, there was presented to this meeting of the governing body
of the authority for its consideration and approval, a copy of a housing develop-
ment plan for said project area dated.February 28, 1983 which plan is entitled
Brooklyn Center Housing Development Project Plan; and
WHEREAS, the said Brooklyn Center Housing and Development Project Plan
dated February 28, 1983 has been duly transmitted by this Authority on February
17, 1983 to the planning agency of the municipality in which the areas to be
developed are situated; namely, the City Planning Commission of the City of
Brooklyn Center for its study, and request was made by said Authority to said
Planning Commission for its written opinion of the said Plan, and said Planning
Commission at a regular meeting subsequent to the public hearing will give the
A, .tj,.',Ly its written opinion of said 1 £end its findings its to compliance with the
General P1111) of the City of lrooklyn Center.
r > • r body of the Housing
NOW THEIt1,l'ORE, BE' IT RI SOLVrD by the bovernin�, y
And Redevelopment Authority in and for the City of Brooklyn Center:
I. Th£it the housing development project area described in said Brooklyn
Center Housing Development Project Plan dated February 28, 1983 will provide
housing for persons of inoderate income and their families as defined in the
Minnesota i Junicii: )lousing and Redeveloprent Act, iMinnesota Statutes Section
462.421, Sub-division `H9, and requires public assistance in order to provide, decent,
fiafe, and sanitary urban dwellings, apartments, or other living accommodations for
persons of low income as defined in ? %linne_sota Statutes Section 462.421,
Subdivision 12 And the U.S. )lousing Act of 1949.
2. The said housing Development Plan and Project will carry out the
purpose and policy of the Municipal liousing and Redevelopment Act of the State
Of Minnesota, Minnesota Statutes Section 462.415 to 462.711 as set forth in
Section 462.415 ano in the Congressional Declaration of National Housing Policy
contained in the Act of 1949 as amended.
3. The said Housing and Development Plan is hereby in all respects
'
e
App
roved and the Secretary is hereby directed to fil said Housing and
Redevelopment Plan with the Minutes of this meeting."
4. Application is hereby made to the City Council of the City of
Brooklyn Center, the governing body of the municipality in which said project i-
loeated, for the approval of said Plan and project area, and the staff of this
Authority to transmit said Plan to said City Council, together with a copy. of this
Resolution, a plan for financing the project and to take such other action as he, the
stud staff may deem necessary and advisable in order to secure from said City
Council its approval of said Plan and projects. Said City Council is hereby
requested to hold a public hearing on said Brooklyn Center Housing Development
Plan after giving published notice of the date, time, place and purpose of such
hearing in a newspaper of general circulation in the City of Brooklyn Center, such
notice to be published at least ten days and no more than 30 days prior to the date
of the hearing.
g
Said City Council is hereby requested to approve said Plan and projects and
to find by Besolution that: (1) the land in the project area would not - be made
available for redevelopment without the financial aid to be sought; (2) the housing
development plan for trio housing development project area in the locality will
afford maximum opport consistent with the sound needs of the locality as a
whole, for the development of such a by private . enterprise; and (3) the housing
development plan conforms to a general plan for the development of the locality as
a whole, and further to find by resolution that (i) the said Plan will afford
maximum opportunity, consistent with sound needs of the locality as a whole, for
redevelopment by private enterprise; and (ii) the Housing Development Plan
conforms to a general plan for the locality as a whole.
Said staff is hereby authorized and directed to transmit to the State
Department of Energy Planning and Development Office of Local Government
2
RESOLUTION NO.
certified copies of this Resolution, of said Plan, and other papers and
documents described or referred to in Minnesota S tatutes , Section 462.445,
Subdivision 8 of said Municipal Housing and Redevelopment Act.
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.
f
t
Member introduced the following resolution and
moved its adoption:
RESOLUTION NO.
RESOLUTION APPROVING THE DISPOSITION OF PROPERTY BY THE
BROOKLYN CENTER HOUSING AND REDEVELOPMENT AUTHORITY
WHEREAS, the Brooklyn Center Housing and Redevelopment Authority (the
"Authority ") owns land it acquired with the approval of the governing body of
the City of Brooklyn Center, Minnesota (the "City Council ") in accordance with
Minnesota Statutes Section 462.466; and
WHEREAS, the Authority desires to dispose of this property to private
enterprise in order to facilitate the establishment and creation of a housing
development project; and
WHEREAS, the Authority has published a notice on February 17, 1983 of
the public hearing in a newspaper of local circulation for the purpose of disposing
of said property in accordance with Minnesota Statutes Section 462.525; and
WHEREAS, the property to be disposed of by the Authority is described
as follows:
Beginning at a point formed by the intersection of the easterly
right -of -way line of Humboldt Avenue and the southerly right-of-
way line of North Lilac Drive; thence northeasterly along said
southerly right -of -way line of North Lilac Drive, to its intersection
with the easterly right -of -way line of Fremont Avenue; thence
northerly along said easterly right -of -way line of Fremont Avenue
to its intersection with the southerly right -of -way line of North
Lilac Drive and continuing northeasterly along said southerly right-
of -way line of North Lilac Drive to its intersection with the
westerly right -of -way line of Dupont Avenue; thence North along
said westerly right -of -way line of Dupont Avenue to its intersection
with the southerly right -of -way of U.S. Interstate 94; thence
westerly along said southerly right -of -way of U.S. Interstate 94
to its intersection with the easterly right -of -way of Minnesota
Trunk Highway 100; thence southerly along said easterly right -of -way
line of Minnesota Trunk Highway 100 to the northerly right -of -way
line of Humboldt Avenue; thence easterly along said northerly right-
of -way line of Humboldt Avenue to the point of beginning.
NOW, THEREFORE, BE IT RESOLVED by the governing body of the Housing
and Redevelopment Authority in and for the City of Brooklyn Center:
That the property generally described in this resolution and legally
described in the Authority Tax Increment Financing Plan for the Brutger Proposal,
dated February 28, 1983, be disposed of to the Brutger Companies Inc., a private
enterprise, in order to facilitate the establishment and creation of a housing
r
and development project as defined in Minnesota Statutes Section 462.466 and
RE:SOLUTIOId 110.
help to alleviate a shortage of decent, safe and sanitary housing for persons
of low and moderate income.
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.
Member. introduced the following resolution and
moved its adoption:
RESOLUTION NO.
RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF BROOKLYN CEPITER AUTHORIZING THE EXECUTION OF
A C ONT RA CT FOR PRI DEVELOPMENT
WHEREAS, by Resolution the Housing and Redevelopment Authority
in and for the City of Brooklyn Center has established a housing development
project pursuant to Minnesota Statutes, Section 462.466; and
WHEREAS, the Authority has negotiated a contract for private development
with Brutger Companies, Inc. pursuant to which contract would provide for the
development of a housing development project as described in Resolution
NOVI, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority
in and for the City of Brooklyn Center that its Chairman and Director are hereby
authorized to enter into a Contract for Private Development by and Between the
Housing and Redevelopment Authority in and for the City of Brooklyn Center and
Brutger Companies, Inc.
Date Chairman
t
� 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.
April 8, 1983
CONTRACT
FOR
PRIVATE DEVELOPMENT
By and Between
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR BROOIKLYN CENTER
And
BRUTGER COMPANIES, INC.
This document was drafted by:
HOLMES & GRAVEN, Chartered
470 Pillsbury Center
Minneapolis, Minnesota 55402
t `
TABLE OF CONTENTS
P age
PREAMBLE 1
ARTICLE I
Definitions
Section 1.1. Definitions 2
ARTICLE H
Representations and Warranties
Section 2.1. Representations by the Authority 6
Section 2.2. Representations and Warranties by the
D eveloper 6
ARTICLE III
Acquisition and Conveyance of Property
Section 3.1. Acquisition of Property 8
Section 3.2. Conveyance of the Property 8
Section 3.3. Time of Conveyance 8
Section 3.4. Title 9
Section 3.5. Authority Funds 9
Section 3.6. Marketing Plans 10
ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Minimum Improvements 11
Section 4.2. Construction Plans 11
Section 4.3. Commencement and Completion of Construction 12
Section 4.4. Certificate of Completion 13
Section 4.5. Payment and Performance Bond 14
Section 4.6. Development Letter of Credit 14
�i)
ARTICLE V
Insurance and Condemnation
Section 5.1. Insurance 16
Section 5.2. Insurance Upon Completion of Construction,
Phase I Improvements 16
Section 5.3. Insurance Upon Completion of Construction
Phase II and Phase II Improvements 18
Section 5.4. Condemnation 19
ARTICLE VI
Tax Increment
Section 6.1. Tax Increment Guarantee 20
Section 6.2. Tax Increment Certification 20
Section 6.3. Real Property Taxes 20
Section 6.4. Assessment Agreements 21
ARTICLE VII
Financing
Section 7.1. Phase I Financing 22
Section 7.2. Phase II Financing 22
Section 7.3. Phase III Financing 23
Section 7.4. Limitation Upon Encumbrance of Property 23
Section 7.5. Approval of Mortgage
pp 24
Section 7.6. Copy of Notice of Default to Mortgagee 24
Section 7.7. Mortgagee's ortgagee s Option to Cure Defaults 24
Section 7.8. Authority's Option to Cure Default on Mortgage 25
Y P
ARTICLE VIII
Prohibitions Against Assignment and Transfer
Section 8.1. Representation as to Redevelopment 26
Section 8.2. Prohibition Against Transfer of Corporate
Interests; Binding Upon Stockholders
Individually 26
Section 8.3. Prohibition Against Transfer of Property and
Assignment of Agreement 26
Section 8.4. Information as to Shareholders 27
Section 8.5. Approvals 28
Section 8.6. Transfer and Assignment After Delivery of the
Certificate of Completion 28
Section 8.7. Phase I Improvements, Retrictions on Rental 28
Section 8.8. Phase II Improvements, Restrictions on Sale 29
(ii)
ARTICLE IX
Project Improvements
Section 9.1. Project Improvements 30
ARTICLE X
Events of Default
Section 10.1. Events of Default Defined 32
Section 10.2. Remedies on Default 32
Section 10.3. Revesting Title in Authority Upon Happening of
Event Subsequent to Conveyance to Developer 33
Section 10.4. Resale of Reacquired Property; Disposition
of Proceeds 34
Section 10.5. No Remedy Exclusive 35
Section 10.6. No Additional Waiver Implied by One Waiver 35
ARTICLE XI
Additional Provisions
Section 11.1. Conflict of Interests; Authority Representatives
Not Individually Liable 37
Section 11.2. Equal Employment Opportunity 37
Section 11.3. Restrictions on Use 38
Section 11.4. Provisions Not Merged With Deed 39
Section 11.5. Titles of Articles and Sections 39
Section 11.6. Notices and Demands 39
Section 11.7. Counterparts 39
Section 11.8. Modification 39
TESTIMONIUM 40
SIGNATURES 40
EXHIBIT A Description of the Property
EXHIBIT B Quit Claim Deed
EXHIBIT C Assessment Agreement
EXHIBIT D Certificate of Completion and Release of Forfeiture
EXHIBIT E Permitted Encumbrances
(iii)
CONTRACT FOR
PRIVATE REDEVELOPMENT
THIS AGREEMENT, made on or as of the day of ,
1983, by and between The Housing and Redevelopment Authority in and for the
City of Brooklyn Center, Minnesota, a public body corporate and politic (the
"Authority "), established pursuant to Minnesota Statutes, Sections 462.411 - 462.711
(hereinafter referred to as the "Act "), and having its principal office at 6301
Shingle Creek Parkway, Brooklyn Center, Minnesota, and Brutger Companies, Inc. a
Minnesota corporation ( "the Developer "), having its principal office at 1 Sunwood
Drive, St. Cloud, Minnesota.
WITNESSETH:
WHEREAS, the Authority was created pursuant to Section 462.425, subdi-
vision 1, of the Act and was authorized to transact business and exercise its powers
by Resolution No. 74 -1 of the City Council of the City of Brooklyn Center (the
"City ") pursuant to Section 462.425 of the Act; and
WHEREAS, in furtherance of the objectives of the Act, and, in particular,
Sections 462.445, subdivision 1(4), 462.421, subdivision 25, and 462.466 of the Act,
the Authority has undertaken a Housing Development Project, to alleviate a serious
shortage of decent, safe, and sanitary housing for persons of low or moderate
income and their families (hereinafter referred to as the "Project ") in an area
(hereinafter referred to as the "Project Area ") located in the City; and
WHEREAS, in order to achieve the objectives of the Project the Authority is
in the process of acquiring by condemnation certain real property located in the
Project Area, and is prepared to convey such property to the Developer in order to
bring about development in accordance with this Agreement; and
WHEREAS, the Authority believes that the development of the Project Area
pursuant to this Agreement, and fulfillment generally of this Agreement, are in the
vital and best interests of the City and the health, safety, morals, and welfare of
its residents, and in accord with the public purposes and provisions of the
applicable State and local laws and requirements under which the Project has been
undertaken and is being assisted:
NOW, THEREFORE, in consideration of the premises and the mutual
obligations of the parties hereto, each of them does hereby covenant and agree
with the other as follows:
1
ARTICLE I
Definitions
Section 1.1. Definitions In this Agreement, unless a different meaning
clearly appears from the context:
"Act" means the Municipal Housing and Redevelopment Act, Minnesota
Statutes Sections 462.411 et se q., as amended.
"Agreement" means this Agreement, as the same may be from time to time
modified, amended, or supplemented.
"Assessed Market Value" or "Assessed Market Valuation" means the market
value of real property as determined by the city assessor of the City in accordance
with Minnesota Statutes Section 273.11 (or as finally adjusted by any assessor,
board of equalization, commissioner of revenue, or any court).
"Assessment Agreement" means the agreement, in the form of the agree-
ment contained in Exhibit C attached to and made a part of this Agreement, among
the Developer, the Authority, and the city assessor of the City, entered into
pursuant to Section 6.5 of this Agreement.
"Authority" means The Housing and Redevelopment Authority in and for
Brooklyn Center, or any successor or assign.
"Authority Funds" means those funds of the Authority which will be
expended for public redevelopment costs with respect to the Project and which will
be repaid to the Authority from tax increment as set forth in this Agreement.
"Bonds" means any general obligation bonds or obligations issued by the City
to finance the acquisition of the Property or to finance other public development
costs of the Project. The term "Bonds" shall also include any bonds or obligations
issued to refund any Bonds.
"Certificate of Completion" means the certification, in the form of the
certificate contained in Exhibit D attached to and made a part of this Agreement,
provided to the Developer, or the purchaser of any part, parcel or unit of the
Property, pursuant to Section 4.4 of this Agreement.
"City" means the City of Brooklyn Center, Minnesota.
"Construction Plans" means the plans, outline specifications, drawings and
related documents on the construction work to be performed by the Developer on
the Property which (a) shall be as detailed as the plans, specifications, drawings
and related documents which are submitted to the building inspector of the City,
and (b) shall include at least the following for each building: (1) site plan; (2)
foundation plan; (3) floor plan for each floor; (4) cross sections of each wall (length
and width); (5) elevations (all sides); and (6) landscape plan.
2
t
"County" means the County of Hennepin, Minnesota.
"Deed" means a quit -claim deed in substantially the form of Exhibit B of
this Agreement, used to convey the property from the Authority to the Developer.
"Developer" means Brutger Companies, Inc., a Minnesota corporation, and
its successors and assigns.
"Development Letter of Credit" means the irrevocable bank letter of credit
provided to the Authority by the Developer pursuant to Section 4.6 of this
Agreement.
"District" means the tax increment financing district within the Project
established pursuant to Resolution No. of the Board of Commissioners of
the Authority.
"Event of Default" means an action by the Developer described in Section
9.1 of this Agreement.
"Holder" means the owner of a Mortgage.
"Maturity Date" means the date when the principal of and interest on the
Authority Funds or any tax increment bonds issued to repay such Funds are paid in
f ull.
"Minimum Improvements" means the Phase I, Phase II and Phase III
improvements to be constructed by the Developer.
"Minnesota Environmental Policy Act" means the statutes located at Min-
nesota Statutes, Sections 116D.01 et seq., as amended.
"Minnesota Environmental Rights Act" means the statutes located at
Minnesota Statutes, Sections 116B.01 et seq., as amended.
"Mortgage" means any mortgage made by the Developer which is secured, in
whole or in part, with the Property and which is a permitted encumbrance pursuant
to the provisions of Article VIII of this Agreement.
"Net Proceeds" means any proceeds paid by an insurer to the Developer or
the Authority under a policy or policies of insurance required to be provided and
maintained by the Developer pursuant to Article V of this Agreement and
remaining after deducting all expenses (including fees and disbursements of
counsel) incurred in the collection of such proceeds.
"National Environmental Policy Act" means the federal law located at 42
U.S.C. §9 4331 et sec., as amended.
"Parcel P" means the real property so designated and legally described in
Exhibit A upon which the Phase I improvements will be constructed.
"Parcel II" means the real property so designated and legally described in
Exhibit A upon which the Phase H improvements will be constructed.
3
w
"Parcel III" means the real property so designated and legally described in
Exhibit A upon which the Phase III improvements will be constructed.
"Phase I Improvements" means a multi -story residential rental apartment
facility with no fewer than sixty -five units, including not fewer than four units
adapted for handicapped persons, to be constructed on Parcel I.
"Phase II Improvements" means a multi -story residential 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 U.
"Phase III Improvements" means no fewer than thirty -two residential
townhouse units, including not fewer than two units adapted for handicapped
persons, to be constructed on Parcel III.
"Permitted Encumbrances" means the encumbrances described in Exhibit E
of this Agreement.
"Project" means the Brookwood Housing Development Project.
"Project Area" means all of the real property located within the boundaries
of the Project.
"Property" means the real property described in Exhibit A of this
Agreement, including Parcel I, Parcel II, and Parcel III.
"Purchase Price" means an amount equal to not less than $70,000 and not
more than $155,575.00 which shall be allocated among the various parcels � g P by
written agreement of the parties.
"State" means the State of Minnesota.
"Targeted Group" shall mean handicapped persons or persons aged fifty -four or
older.
"Tax Increment Account" means the segregated account maintained by the
Authority (a) into which will be credited and deposited from time to time (i) all tax
increments generated and paid over to the Authority from the tax increment
district for the Project Area, (ii) the amounts paid by the Developer to the
Authority for the purchase of the Property, (iii) any payments made by the
Developer pursuant to Section 6.1 of this Agreement, (iv) any other funds pledged
to the payment of the principal of and interest on the Authority Funds, plus (v)
interest accruing on the foregoing, and (b) from which payments of principal of and
interest on the Authority Funds are made from time to time.
"Tax Increment Act" means the Tax Increment Financing Act, Minnesota
Statutes Sections 273.71 273.78, as amended.
"Tax Official" means any City or county assessor; County auditor; City,
County or State board of equalization, the commissioner of revenue of the State,
or any State or federal district court, the tax court of the State, or the State
Supreme Court.
4
i
"Unavoidable Delays" means delays beyond the control of Developer which
are the direct result of strikes, similar labor troubles, fire, unavailability of power,
unavailability of materials, acts of governmental entities, unusually severe weather
or other casualty to the Minimum Improvements, and litigation commenced by
third parties which, by injunction or other similar judicial action, directly results in
delays.
5
ARTICLE II
Representations and Warranties
Section 2.1. Representations by the Authority The Authority makes the
following representations as the basis for the undertaking on its part herein
contained:
(a) The Authority is a public body corporate and politic with all the
powers of a housing and redevelopment authority duly organized and existing under
the laws of the State. Under the provisions of the Act, the Authority has the
power to enter into this Agreement and carry out its obligations hereunder.
(b) The Project is a "housing development project" within the meaning of
the Act and was created, adopted and approved in accordance with the terms of
the Act.
(e) The Project is or will be a "tax increment district ", which was or will
be created, adopted, certified and approved pursuant to Minnesota Statutes
Sections 273.71 through 273.78.
(d) The Authority proposes to sell the Property to the Developer for use
in accordance with this Agreement.
(e) The activities of the Authority are undertaken for the purpose of
alleviating a serious shortage of decent, safe, and sanitary. housing for persons of
low income and their families.
(f) As of the date of execution of this Agreement, the Authority has
received no notice or communication from any local, state or federal official that
the activities of the Developer or the Authority in the Project Area may be or will
be in violation of any environmental law or regulation. As of the date of execution
of this Agreement, the Authority is aware of no facts, the existence of which
would cause it to be in violation of any local, state or federal environmental law,
regulation or review procedure or which would give any person a valid claim under
the Minnesota Environmental Rights Act.
(g) As of the date of transfer of the Property to the Developer, and until
the issuance of the necessary building permits for the Minimum Improvements, the
Minimum Improvements will be an allowed use under the zoning ordinance of the
City.
Section 2.2. Representations and Warranties by the Developer The
Developer represents and warrants that:
(a) The Developer is a Minnesota corporation duly organized and in good
standing under the laws of the State, is not in violation of any provisions of its
articles of incorporation, or the laws of the State, has power to enter into this
Agreement and has duly authorized the execution, delivery and performance of this
Agreement by proper action of the board of directors.
6
(b) In the event the Property is conveyed to the Developer, then the
Developer will construct, operate and maintain the Minimum Improvements in
accordance with the terms of this Agreement, and to the best of its ability and
knowledge, will comply with all local, state and federal laws and regulations
(including, but not limited to, environmental, zoning, building code and public
health laws and regulations), except for variances necessary to construct the
improvements contemplated in the Construction Plans approved by the Authority.
(c) At such time or times as will be required by law, the Developer, to
the best of its ability and knowledge, will have complied with all applicable local,
state and federal environmental laws and regulations, and will have obtained any
and all necessary environmental reviews, licenses or clearances under (and is in
compliance with the requirements of) the National Environmental Policy Act of
1969, the Minnesota Environmental Policy Act, and the Critical Areas Act of 1973.
As of the date of execution of this Agreement, the Developer has received no
notice or communication from any local, state or federal official that the
activities of the Developer or the Authority in the Project Area may be or will be
in violation of any environmental law or regulation. As of the date of execution of
this Agreement, the Developer is aware of no facts the existence of which would
cause it to be in violation of any local, state or federal environmental law,
regulation or review procedure or which would give any person a valid claim under
the Minnesota Environmental flights Act.
(d) The Developer will use its best efforts to construct the Minimum
Improvements in accordance with all applicable local, state or federal energy -
conservation laws or regulations.
(e) The Developer will use its best efforts to obtain, in a timely manner,
all required permits, licenses and approvals, and to the best of its ability and
knowledge, will meet, in a timely manner, all requirements of all applicable local,
state and federal laws and regulations which must be obtained or met before the
Minimum Improvements may be lawfully constructed.
(f) Neither the execution and delivery of this Agreement, the consum-
mation of the transactions contemplated hereby, nor the fulfillment of or compli-
ance with the terms and conditions of this Agreement is prevented, limited by or
conflicts with or results in a breach of, the terms, conditions or provisions or any
corporate restriction or any evidences of indebtedness, agreement or instrument of
whatever nature to which the Developer is now a party or by which it is bound, or
constitutes a default under any of the foregoing.
7
ARTICLE III
Acquisition and Conveyance of Property
Section 3.1. Acquisition of Property The Authority shall acquire title to
and possession of the Property and convey title to and possession of the Property to
the Developer pursuant to this Article III of this Agreement if all conditions to
such conveyance as provided in this Agreement have first been satisfied or waived.
Section 3.2. Conveyance of the Property The Authority shall convey title
to and possession of the Property to the Developer under deeds in substantially the
form of the Deed in Exhibit B of this Agreement, subject to the conditions set
forth below. The conveyance of title to and possession of the Property pursuant to
such Deeds and the Developer's use of the Property shall be subject to all of the
conditions, covenants, restrictions and limitations imposed by this Agreement and
the Deed. The conveyance of title to and possession of the Property pursuant to
the Deed and the Developer's use of the Property shall also be subject to Permitted
Encumbrances, and building and zoning laws and ordinances and all other applicable
local, state and federal laws and regulations.
Section 3.3. Time of Conveyance (a) Parcel I. Subject to satisfaction of
the financing requirements the Phase I Improvements set forth in Sections 7.2
and 7.3 of this Agreement, and if no Event of Default has occurred (or if an Event
of Default has occurred but has been cured), the Authority shall execute and
deliver the Deed for Parcel I on the later of: (i) May 1, 1983 (ii) thirty (30) days
after approval of the Construction Plans for Parcel I pursuant to Section 4.2
hereof; or (iii) on such other date as the Authority and the Developer shall agree in
writing. Subject to said financing requirements, the Developer shall accept the
Deed for Parcel I and pay the Purchase Price for such parcel on May 1, 1983, if the
Authority has acquired Parcel I and if Construction Plans have been approved, or
on a date no later than ten (10) days after receipt of a notice from the Authority
that the condition stated in this Section 3.3(a)(ii) has been satisfied, or on such
other date as the Authority and the Developer shall mutually agree in writing. The
Developer shall take possession of Parcel I the day following delivery of the Deed
for Parcel I by the Authority.
(b) Parcel II and Parcel Ill. Subject to: (i) satisfaction of the financing
requirements for the Phase II and Phase III Improvements set forth in Sections 7.2
and 7.3 of this Agreement, and (ii) the prior or simultaneous conveyance of Parcel I
pursuant to paragraph (a) above, and if no Event of Default has occurred (or if an
Event of Default has occurred but has been cured), the Authority shall execute and
deliver the Deeds for Parcel II and Parcel III on the later of: (1) May 1, 1983, (2)
thirty (30) days after approval of the Construction Plans for the Phase II and Phase
III Improvements pursuant to Section 4.2 hereof, or (3) on such other date as the
Authority and the Developer shall agree in writing. Subject to said financing
requirements, the Developer shall accept the Deeds for Parcel II and Parcel III and
pay the respective Purchase Prices on May 1, 1983, if all conditions precedent to
such conveyances have been met, or on a date no later than ten (10) days after
8
receipt by Developer of a written notice from the Authority that the condition set
forth in this Section 3.3(b)(2) has been met. The Developer shall take possession of
Parcels II and III on the day following delivery of the Deeds for Parcels II and III.
Provided, however, that the Authority's obligation to deliver Parcel III according to
this paragraph (b) is contingent on the prior or simultaneous conveyance of Parcel
II by the Authority to Developer.
(c) Unless otherwise agreed by the Authority and the Developer, the
execution and delivery of all deeds and the payment of the Purchase Prices shall be
made at the office of the Authority.
(d) The Deeds shall be in recordable form and shall each be promptly
recorded with an Assessment Agreement and a copy of Minnesota Statutes Section
273.76, Subdivision 8, as required pursuant to the Assessment Agreement. The
Developer shall pay all costs for such recording.
Section 3.4. Title (a) Within ten (10) days after the Authority has received
a satisfactory initial commitment for the issuance of an owner's title insurance
policy with respect to the Property the Authority shall deliver a copy of the
commitment to the Developer. The commitment shall be obtained from a title
insurance company licensed to do business in the State and shall insure the title to
the Property in the amount of the initial purchase price of the Property. The
commitment shall commit the insurer to the issuance of an owner's title insurance
policy (ALTA FORM "B "), shall name the Authority as the proposed insured party,
shall be certified to date, include searches for bankruptcies and state and federal
judgments, tax and other liens and for all special assessments levied or pending.
The Developer shall be allowed ten (10) days after receipt thereof for examination
of said commitment and delivery to the Authority of a list of all encumbrances or
other interests in the Property which are unacceptable to the Developer.
(b) If any objection to the commitment is made by the Developer, said
objections shall be accompanied by a written election of one of the following. (i)
termination of this Agreement by written notice to the Authority within the
twenty (20) days provided in paragraph (a) for examination of the commitment and
making objections thereto; or (ii) authorization to proceed with transfer of
possession of the Property to the Developer upon the assumption by the Authority
of the obligation to take any actions permitted by law to cure the objection. If the
Developer makes the election described in Section 3.4(b)(i) of this Agreement, this
Agreement shall terminate upon receipt of such written election by the Authority
but only if all objections to the commitment are objections which the Developer is
permitted to make pursuant to Section 3.4(a) of this Agreement. If the Developer
makes the election described in Section 3.4(b)(ii) of this Agreement, the risk that
the objection cannot be cured (or that title cannot be rendered marketable) shall be
entirely borne by the Developer.
(e) The Authority shall voluntarily take no actions to encumber title to
the Property between the date the Authority acquires the Property and the date on
which the Deeds are executed and delivered by the Authority to the Developer.
Section 3.5. Au thorit V Funds. In order to finance the public development
costs of the Project, the Authority intends to either issue tax increment bonds or
9
to borrow funds (i.e. the Authority Funds) from certain City funds with the
understanding that the amounts borrowed together with interest thereon will be
recovered from tax increment generated in the District over a fifteen year period,
and to the extent necessary Developer's tax - increment guarantee pursuant to
Section 6.1 of this Agreement and the Development Letter of Credit.
Section 3.6. Marketing Plans One of the objectives of the Authority in
undertaking the Project is to promote the development of housing in the City for
persons aged fifty -five and older and handicapped persons. The Developer
understands this objective and shall make a good faith effort to market the Phase I
Improvements and the Phase II Improvements to the Targeted Group.
(a) Prior to conveyance of the Redevelopment Property to the
Developer, the Developer shall deliver to the Authority a marketing plan in which
the Developer sets forth its plans for marketing the Phase II Improvements and for
renting apartments in the .Phase I Improvements to persons in the Targeted Group.
The marketing plan will include a provision detailing the time period during which
it will be implemented by the Developer, and other provisions deemed necessary by
the Authority, and will be accepted or rejected by the Executive Director of the
Authority within thirty (30) days afrom the date upon which it is received by the
Authority.
(b) 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 p ha a an amount determined b the Authority
pay to the Authority Y Y
representing the subsidy for the Phase H Improvements provided by the Authority,
but in any event not more than $4,000 nor less than $2,000 per unit. 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 representing 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 payments shall be an amount determined by dividing a number determined by
the Authority representing the subsidy provided for each unit of the Phase I
Improvements (being not more than $4,000 nor less than $2,000) by 180 months, for
each apartment rented to persons other than those in the Targeted Group, and shall
continue to be made for any apartment so rented until the maturity date.
(c) The declaration to be filed by the Developer with respect to the
Phase H Improvements pursuant to Minnesota Statutes 515A.2-101 shall include a
provision granting the unit owners association, organized pursuant to Minnesota
Statutes Section 515A.3 - 102, a right of first refusal in the event any unit is sold to
a person not in the Targeted Group. The purpose of this provision in the
declaration is to permit the unit owners association an opportunity to limit the sale
of units to persons in the Targeted Group.
10
K
ARTICLE IV
Construction of Minimum Improvements
Section 4.1. Construction of Minimum Improvements The Developer
agrees that it will construct the Minimum Improvements on the Property in
accordance with the approved Construction Plans and at all times prior to the
Maturity Date will operate and maintain, preserve and keep the Minimum
Improvements or cause the Minimum Improvements to be maintained, preserved
and kept with the appurtenances and every part and parcel thereof, in good repair
and condition.
Section 4.2. Construction Plans (a) At any time after execution of this
Agreement by the Authority and the Developer, the Developer may submit to the
Authority "Preliminary Plans," consisting of floor plans and sketches of the
exterior and interior of any or all of the proposed Phase I, Phase H and Phase III
Improvements which illustrate the size and character of the proposed
improvements. The Preliminary Plans shall not be inconsistent with this
Agreement and all applicable state and local laws and regulations, insofar as said
consistency may be determined at said preliminary stage. Said preliminary plans
shall be approved or rejected (in whole or in part) in writing by the Authority
within thirty (30) days after the date of their receipt by the Authority. If no
written rejection is made within said thirty (30) days, the Preliminary Plans shall
be deemed approved by the Authority. Any rejection shall set forth in detail the
reasons therefor. If the Authority rejects the Preliminary Plans, in whole or in
part, the Developer may submit new or corrected Preliminary Plans at any time
after receipt by the Developer of the notice of rejection. The Authority's approval
J Y
of the Preliminary Plans shall not be unreasonably withheld.
(b) Prior to execution and delivery of the Deed for the respective Parcel
or Parcels by the Authority and the Developer, but in any event no later than
March 1, 1983, the Developer shall submit Construction Plans for the Minimum
Improvements to the Authority. The Construction Plans shall provide for the
construction of the Minimum Improvements and shall be in conformity with this
Agreement, the Preliminary Plans, and all applicable state and local laws and
regulations. The Authority shall approve the Construction Plans in writing if, in
the sole discretion of the Authority: (i) the Construction Plans conform to the
terms and conditions of this Agreement; (ii) the Construction Plans conform to all
applicable federal, State and local law, ordinances, rules and regulations; (iii) the
Construction Plans are adequate to provide for the construction of the Minimum
Improvements; (iv) the Construction Plans do not provide for expenditures in excess
of the funds available to the Developer for the construction of the Minimum
Improvements for the respective Phase; and (v) no Event of Default has occurred.
No approval by the Authority shall relieve the Developer of the obligation to
comply with the terms of this Agreement, the applicable federal, state and local
laws, ordinances, rules and regulations, or to construct the Minimum
Improvements.
Such approval by the Authority shall not (i) constitute a representation or
guarantee to any third party that the Minimum Improvements, if constructed in
11
accordance with said plans, have been constructed in accordance with such laws,
ordinances or rules; or (ii) subject the Authority to any liability for any defect in
design or workmanship of the Minimum Improvements. No approval by the
Authority shall constitute a waiver of an Event of Default.
Such Construction Plans shall, in any event, be deemed approved unless
rejected in writing by the Authority, in whole or in part. Such rejection shall set
forth in detail the reasons therefor, and shall be made within the later of thirty
(30) days after the date of their receipt by the Authority or thirty (30) days after
the date of this Agreement. If the Authority rejects the Construction Plans in
whole or in part, the Developer shall submit new or corrected Construction Plans
within thirty (30) days after written notification to the Developer of the rejection.
The provisions of this Section relating to approval, rejection and resubmission of
corrected Construction Plans shall continue to apply until the Construction Plans
have been approved by the Authority. The Authority's approval shall not be
unreasonably withheld. Said approval shall constitute a conclusive determination
that the Construction Plans (and the Minimum Improvements, if constructed in
accordance with said plans) comply to the Authority's satisfaction with the
provisions of this Agreement relating thereto. The Construction Plans shall not be
an
rejected due to objection which could have been raised upon review of the
J Y objection
more economically Preliminary Plans and c y at that time.
(c) If the Developer desires to make any substantial change in the
Construction Plans after their approval by the Authority, the Developer shall
submit the proposed change to the Authority for its approval. If the Construction
Plans, as modified by the proposed change, conform to the requirements of Section
4.2(b) of this Agreement the Authority shall approve the proposed change and
notify the Developer in writing of its approval. Such change in the Construction
Plans shall, in .any event, be deemed approved by the Authority unless rejected, in
whole or in part, by written notice by the Authority to the Developer, setting forth
in detail the reasons therefor within ten (10) days after receipt of the notice of the
proposed change.
Section 4.3. Commencement and Completion of Constructi (a Phase I
Subject to Unavoidable Delays, the Developer shall commence construction of the
Phase I Improvements within thirty (30) days after receipt of the Deed for Parcel I
from the Authority, or on such other date as the parties shall agree in writing.
Subject to Unavoidable Delays, the Developer shall complete the construction of
the Phase I Improvements within seven (7) months from the date of commencement
of the construction. The construction of the Phase I Improvements shall be in
conformity with the Construction Plans approved by the Authority.
(b) Phase H . Subject to Unavoidable Delays, the Developer shall
commence construction of the Phase II Improvements within thirty (30) days after
receipt of the Deed for Parcel II from the Authority, or on such other date as the
parties shall mutually agree. Subject to Unavoidable Delays, the Developer shall
complete the construction of the Phase II Improvements within nine (9) months
from the date of commencement of the construction. The construction of the
Phase H Improvements shall be in conformity with the Construction Plans approved
by the Authority.
12
ti
• (c) Phase III Subject to Unavoidable Delays, the Developer shall
commence construction of the Phase III Improvements, within thirty (30) days after
receipt of the Deed for Parcel III from the Authority, or on such other date as the
parties shall mutually agree. Subject to Unavoidable Delays, the Developer shall
complete the construction of the Phase III Improvements within seven (7) months
from the date of commencement of the construction. The construction of the
Phase III Improvements shall be in conformity with the Construction Plans
approved by the Authority.
(d) The Developer agrees for itself, its successors and assigns, and every
successor in interest to the Property, or any part thereof, that the Deeds shall
contain covenants on the part of the Developer for itself and such successors and
assigns, that the Developer, and such successors and assigns, shall promptly begin
and diligently prosecute to completion the development of the Property through
the construction of the Minimum Improvements thereon, and that such construction
shall in any event be commenced and completed within the periods specified in this
Section 4.3 of this Agreement. It is intended and agreed, and the Deeds shall
expressly provide, that such agreements and covenants shall be covenants running
with the land and that they shall, in any event, and without regard to technical
classification or designation, legal or otherwise, and except only as otherwise
specifically provided in the Agreement itself, be, to the fullest extent permitted by
law and equity, binding for the benefit of the Authority and the City and
enforceable by the Authority and the City against the Developer and its successors
and assigns. Subsequent to conveyance of the Property, or any part thereof, to the
Developer, and until construction of the Minimum Improvements has been
completed, the Developer shall make reports, in such detail and at such times as
may reasonably be requested by the Authority, as to the actual progress of the
Developer with respect to such construction.
Section 4.4. Certificate of Completion (a) Promptly after completion of
the Minimum Improvements on Parcel I, Parcel II, or Parcel III, or all of them, in
accordance with those provisions of the Agreement relating to the obligations of
the Developer to construct such Improvements (including the dates for beginning
and completion thereof), the Authority will furnish the Developer with an
appropriate instrument so certifying. Such certification by the Authority shall be
(and it shall be so provided in the Deeds and in the certification itself) a conclusive
determination of satisfaction and termination of the agreements and covenants in
the Agreement and in the respective Deed with respect to the obligations of the
Developer, and its successors and assigns, to construct the Minimum Improvements,
and the dates for the beginning and completion thereof. Such certification and
such determination shall not constitute evidence of compliance with or satisfaction
of any obligation of the Developer to any Holder of a Mortgage, or any insurer of a
Mortgage, securing money loaned to finance the Minimum Improvements, or any
part thereof.
(b) The certificates provided for in this Section 4.4 of this Agreement
shall be in such form as will enable them to be recorded in the proper office for the
recordation of deeds and other instruments pertaining to the Property. If the
Authority shall refuse or fail to provide any certification in accordance with the
provisions of this Section 4.4 of this Agreement, the Authority shall, within thirty
(30) days after written request by the Developer, provide the Developer with a
13
written statement, indicating in adequate detail in what respects the Developer has
failed to complete the Minimum Improvements in accordance with the provisions of
the Agreement, or is otherwise in default, and what measures or acts it will be
necessary, in the opinion of the Authority, for the Developer to take or perform in
order to obtain such certification.
(c) The construction of each phase of the Minimum Improvements shall
be deemed to be completed when the Developer obtains from the City a certificate
of occupancy for the improvements for such phase.
Section 4.5. Payment and Performance Bond The Developer shall furnish,
or cause to be furnished, to the Authority on or before the commencement of
construction of the Minimum Improvements a payment bond and a performance
bond with respect to construction of the Minimum Improvements and the payment
of all obligations arising thereunder. The payment bond and performance bond
shall name the Authority as obligee or co- obligee, shall be in the amount of the
contracts for the construction of the Minimum Improvements shall be in such form
and with such surety or sureties as the Authority may approve.
Section 4.6. Development Letter of Credit (a) On even date herewith the
Developer shall provide the Authority an irrevocable bank letter of credit, in a
form satisfactory to the Authority, in an amount equal to One Hundred Twenty -
Five Thousand Dollars ($125,000). This letter of credit and any other letter of
credit provided pursuant to this Section 4.6 of this Agreement shall be referred to
as the "Development Letter of Credit."
Any Development Letter of Credit shall, by its terms, be available for
payments to the Authority pursuant to any demand for payment by the Authority
until the completion of construction of the Minimum Improvements and delivery of
the Certificate of Completion pursuant to Section 4.4(a) of this Agreement. Any
Development Letter of Credit may have an expiration date equal to or for a period
of time greater than one year from the date when the Authority receives the
Development Letter of Credit; provided, however, that in the event the Developer
P �
P > >
Pe
has not completed the construction of the Minimum Improvements and received the
A P
Certificate of Completion thirty-five (35) days prior to the expiration date of the
Y Ys F
Development Letter of Credit, then the Developer shall provide a substitute
Development Letter of Credit to the Agency, in the same form and in the same
amount, with an expiration date of at least one year from the expiration date of
the prior Development Letter of Credit. Upon tender by the Developer of the
substitute Development Letter of Credit, the Authority will exchange the prior
Development Letter of Credit for such substitute.
(b) The Development Letter of Credit shall provide that W in the event
the Developer: (A) fails to submit a substitute Development Letter of Credit to the
Authority in a timely and satisfactory manner as required by Section 4.6(a) of this
Agreement; (B) fails to submit Construction Plans to the Authority pursuant to
Section 4.2 of this Agreement which are approved by the Authority; (C) fails to
submit satisfactory evidence of financing sufficient to construct the Minimum
Improvements pursuant to Article VII of this Agreement; (D) fails to provide the
Authority with a performance bond pursuant to Section 4.5 of this Agreement; (e)
14
subject to Unavoidable Delays fails to commence construction of the Minimum
Improvements in a timely manner or in conformity with the Construction Plans
pursuant to Article IV of this Agreement; of (F) subject to Unavoidable Delays fails
to complete construction of the Minimum Improvements in a timely manner or in
conformity with the Construction Plans; and (ii) within thirty (30) days after
written notice of failure from the Authority, the Developer does not cure such
failure or, if the failure is by its nature incurable within such thirty (30) days, does
not furnish the Authority with satisfactory evidence that it can and will cure such
failure within a reasonable time, then upon written demand to the bank, the bank
will pay to the Authority the entire amount of the Development Letter of Credit.
Upon such payment, the monetary obligations of the Developer hereunder shall
terminate and neither party shall have any obligation or liability toward the other,
except that the Authority shall have the continued right to repossess the
Development Property, and all interests therein in accordance with the provisions
of Section 10.4 of this Agreement and except that in the event that such payment
exceeds the actual damages suffered by the Authority due to the Developer's
failure set forth above, the Authority shall refund any such excess to the
Developer.
15
ARTICLE V
Insurance and Condemnation
Section 5.1. Insurance During Construction (a) The Developer will provide
and maintain at all times during the process of constructing the Minimum
Improvements and, from time to time at the request of the Authority, furnish the
Authority with proof of payment of premiums on:
(a) Builder's risk insurance, written on the so-called "Builder's Risk --
Completed Value Basis," in an amount equal to one hundred percent (100%) of the
insurable value of the Minimum Improvements at the date of completion, and with
coverage available in nonreporting form on the so-called "all risk" form of policy.
The interest of the Authority shall be protected in accordance with a clause in
form and content satisfactory to the Authority;
(b) Comprehensive general liability insurance (including operations,
contingent liability, operations of subcontractors, completed operations and
contractual liability insurance) together with an Owner's Contractor's Policy with
limits against bodily injury and property damage of not less than $1,000,000 for
each occurrence (to accomplish the above- required limits, an umbrella excess
liability policy may be used); and
(c) Worker's compensation insurance, with statutory coverage.
The policies of insurance required pursuant to clauses (i) and (ii) above shall be in
form and content satisfactory to the Authority and shall be placed with financially
sound and reputable insurers licensed to transact business in the State. The policy
of insurance delivered pursuant to clause (i) above shall contain an agreement of
the insurer to give not less than thirty (30) days' advance written notice to the
Authority in the event of cancellation of such policy or change affecting the
coverage thereunder.
Section 5.2. Insurance Upon Completion of Construction, Phase I
Improvements (a) Upon completion of construction of the Phase I Improvements
and prior to the Maturity Date, the Developer shall maintain, or cause to be
maintained, at its sole cost and expense, and from time to time at the request of
the Authority shall furnish proof of the payment of premiums on, insurance as
f ollows:
(i) Insurance against loss and /or damage to the Phase I
Improvements under a policy or policies covering such risks as are ordinarily
insured against by similar businesses, including (without limiting the
generality of the foregoing) fire, extended coverage, vandalism and
malicious mischief, boiler explosion, water damage, demolition cost, debris
removal, collapse and flood in an amount not less than the full insurable
replacement value of the Phase I Improvements, but any such policy may
have a deductible amount of not more than $25,000. No policy of insurance
shall be so written that the proceeds thereof will produce less than the
minimum coverage required by the preceding sentence, by reason of co-
insurance provisions or otherwise, without the prior consent thereto in
16
writing by the Authority. The term "full insurable replacement value" shall
mean the actual replacement cost of the Phase I Improvements (excluding
foundation and excavation costs and costs of underground flues, pipes, drains
and other uninsurable items) and equipment, and shall be determined from
time to time at the request of the Authority, but not more frequently than
once every three years, by an insurance consultant or insurer, selected and
paid for by the Developer and approved by the Authority. All policies
evidencing insurance required by this subparagraph (i) with respect to the
Phase I Improvements shall be carried in the names of the Developer and the
Authority and shall contain standard clauses which provide for Net Proceeds
of insurance resulting from claims per casualty thereunder to the Minimum
Improvements which are equal to or less than $50,000 for loss or damage
covered thereby to be made payable directly to the Developer, and Net
Proceeds from such claims in excess of $50,000 to be made payable jointly
to the Authority and the Developer. The Authority and the Developer shall
jointly agree on the amount of settlement.
(ii) Comprehensive general public liability insurance, including
personal injury liability (with employee exclusion deleted), in such amounts
as may be acceptable to the Authority, as determined annually, and shall be
endorsed to show the Authority as additional insured.
(iii) Such other insurance, including worker's compensation insur-
ance respecting all employees of the Developer engaged in work with
respect to the construction of the Minimum Improvements, in such amount
as is customarily carried by like organizations engaged in like activities of
comparable size and liability exposure; provided that the Developer may be
self- insured with respect to all or any part of its liability for worker's
compensation.
(b) All insurance required in this Article V of this Agreement shall be
taken out and maintained in responsible insurance companies selected by the
Developer which are authorized under the laws of the State to assume the risks
covered thereby. The Developer will deposit annually with the Authority policies
evidencing all such insurance, or a certificate or certificates or binders of the
respective insurers stating that such insurance is in force and effect. Unless
otherwise provided in this Article V of this Agreement each policy shall contain a
provision that the insurer shall not cancel nor modify it without giving written
notice to the Developer and the Authority at least thirty (30) days before the
cancellation or modification becomes effective. Not less than fifteen (15) days
prior to the expiration of any policy, the Developer shall furnish the Authority
evidence satisfactory to the Authority that the policy has been renewed or
replaced by another policy conforming to the provisions of this Article V of this
Agreement, or that there is no necessity therefor under the terms hereof. In lieu
of separate policies, the Developer may maintain a single policy, blanket or
umbrella policies, or a combination thereof, having the coverage required herein, in
which event the Developer shall deposit with the Authority a certificate or
certificates of the respective insurers as to the amount of coverage in force upon
the Phase I Improvements.
(c) The Developer agrees to notify the Authority immediately in the case
of damage exceeding $50,000 in amount to, or destruction of, the Phase I
17
Improvements or any portion thereof resulting from fire or other casualty. In the
event that any such damage does not exceed $50,000, the Developer will forthwith
repair, reconstruct and restore the Phase I Improvements to substantially the same
or an improved condition or value as it existed prior to the event causing such
damage and, to the extent necessary to accomplish such repair, reconstruction and
restoration, the Developer will apply the Net Proceeds of any insurance relating to
such damage received by the Developer to the payment or reimbursement of the
costs thereof. Net Proceeds of any insurance relating to such damage up to
$50,000 shall be paid directly to the Developer.
In the event the Phase I Improvements or any portion thereof is destroyed by
fire or other casualty and the damage or destruction is estimated to equal or
exceed $50,000, then the Developer shall within one hundred and twenty (120) days
after such damage or destruction, proceed forthwith to repair, reconstruct and
restore the damaged Phase I Improvements to substantially the same condition or
utility value as existed prior to the event causing such damage or destruction and,
to the extent necessary to accomplish such repair, reconstruction and restoration,
the Developer will apply the Net Proceeds of any insurance relating to such
damage or destruction received by the Developer from the Authority to the
payment or reimbursement of the costs thereof. Any Net Proceeds remaining after
completion of construction shall be disbursed to the Developer.
(d) If the Developer is in compliance with the terms and conditions of
this Agreement and the Deed or Deeds, then any Net Proceeds of insurance
relating to such damage or destruction received by the Authority shall be disbursed
from time to time by the Authority to the Developer to pay for expenditures
incurred in the repair, reconstruction, or restoration of the Phase I Improvements
upon the submission by the Developer to the Authority of evidence, satisfactory to
the Authority, indicating that the Phase I Improvements will be repaired,
reconstructed or restored.
The Developer shall complete the repair, reconstruction and restoration of the
Phase I Improvements, whether or not the Net Proceeds of insurance received by
the Developer eveloper for such purposes are sufficient to pay for the same. Any Net
Proceeds remaining after completion of such repairs, construction and restoration
shall be remitted to the Developer.
Section 5.3. Insurance Upon Completion of Construction, Phase II and Phase
III Improvements. The Developer intends to create condominiums with respect to
the Phase II and the Phase III Improvements pursuant to the provisions of Minnesota
Statutes Chapter 515A (the Minnesota Uniform Condominium ActT. Upon
completion of the Phase II and Phase III Improvements and prior to the filing of the
declaration creating condominiums the Developer shall maintain insurance for the
Phase II and Phase III Improvements in accordance with the provisions of Section
5.3 of this Agreement and in the event of damage or destruction shall provide for
restoration of said improvements in accordance with paragraph (c) and (d) of
Section 5.3.
Upon filing the declarations for the condominiums the insurance for the
Phase II and Phase III Improvements shall be maintained by the respective
homeowners' associations pursuant to the Minnesota Uniform Condominium Act.
The Developer shall include in each declaration a provision requiring that the
18
+ 4
homeowners' association maintain property insurance on the common elements and
units, exclusive of land, excavations, foundations, and other items normally
excluded from property policies, insuring against all risks of direct physical loss, in
an amount equal to one hundred percent (100 %) of the full insurable replacement
cost of the insured property.
In addition, the Developer shall obtain insurance to cover the risk that the
Phase II and /or Phase III Improvements are damaged or destroyed, the appropriate
homeowners' association decides pursuant to Minnesota Statutes, Section 515A.3-
112(g) not to rebuild and (c) the tax increment generated by the District is
thereafter inadequate to repay the Authority Funds or any bonds issued to refund
the Authority Funds. The Developer shall submit evidence of the payment of the
premium of such insurance prior to the delivery of the Certificates of Completion
for the Phase II and Phase III Improvements.
Section 5.4. Condemnation In the event that title to and possession of the
Phase I Improvements or any material part thereof shall be taken in condemnation
or by the exercise of the power of eminent domain by any governmental body or
other person prior to the Maturity Date, the Developer shall, with reasonable
promptness after such taking, notify the authority as to the nature and extent of
such taking. Upon receipt of any Condemnation Award the Developer shall elect to
either: (a) use the entire Condemnation Award to reconstruct the Phase I
Improvements (or, in the event only a part of Phase I Improvements have been
taken, then to reconstruct such part) within the Project Area; or (b) pay to the
Authority out of the Condemnation Award the amount necessary to pay one third
of the outstanding principal of and interest on the Authority Funds.
19
ARTICLE VI
Tax Increment
Section 6.1. Tax Increment Guarantee (a) Phase I. In the event that prior
to the Maturity Date, the tax increment to be generated by the Phase I
Improvements and Parcel I, 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 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) Phases II and III. In the event that the tax increment generated by
the Phase II and Phase III Improvements and Parcels II and III which is payable in
1985 and 1986 is not equal to seventy -four percent (74 %) percent of debt service
due and payable on the Authority Funds, and when taken together with other funds
in the Tax Increment e ent A i
Account sinsufficient t o make the rinci al and interest
P P
payments as the same shall become due and payable 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 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 an ri hts of setoff, ment or counter-claim
it mi ht of i se
Y . otherwise
g
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g
have against the Authority or any other government body or other person.
Section 6.2. Tax Increment Certification The Authority shall establish the
Project Area as a "tax increment district" and shall request that the county auditor
of the County certify the Assessed Market Value of all taxable real property in the
Project Area pursuant to Minnesota Statutes Section 273.76, as applicable. The
Authority shall pledge and appropriate the tax increment generated by the Project
Area
ea o the a ment of the principal of premium, if
P Y u n P p , p , any, and interest on the
Authority Funds. The Developer shall not fail to make an required payments for
an cause or circumstance q P
Y
y c cumstance whatsoever including the failure or refusal of a bank to
honor a demand under a letter of credit, any change in law, or any other event even
if beyond the control of the Developer.
Section 6.3. Real Property Taxes (a) The Developer shall pay all real
property taxes payable with respect to each Parcel subsequent to execution and
delivery of the Deed for such Parcel.
(b) The Developer agrees that prior to the Maturity Date it will not
cause a reduction in the real property taxes paid in respect of the Property or any
Parcel thereof, or the Minimum Improvements below the amount sufficient to pay
the principal and interest due on the Authority Funds by: (i) seeking administrative
20
review or judicial review of the applicability of any tax statute determined by any
Tax Official to be applicable to the Project or the Developer or raising the
inapplicability of any such tax statute as a defense in any proceedings, including
delinquent tax proceedings; (ii) seeking administrative review or judicial review of
the constitutionality of any tax statute determined by any Tax Official to be
applicable to the Project or the Developer or raising the unconstitutionality of any
such tax statute as a defense in any proceedings, including delinquent tax
proceedings; (iii) any of the following: (A) willful destruction of the Property or
the Minimum Improvements or any part thereof; (B) willful refusal to reconstruct
damaged or destroyed property pursuant to Section 5.1 of this Agreement; (C) a
request to the city assessor of the City or the county assessor of the County to
reduce the Assessed Market Value of all or any portion of the Property or the
Minimum Improvements; (D) a petition to the board of equalization of the City or
the board of equalization of the County to reduce the Assessed Market Value of all
or any portion of the Property or the Minimum Improvements; (E) a petition to the
board of equalization of the State or the commissioner of revenue of the State to
reduce the Assessed Market Value of all or any portion of the Property or the
Minimum Improvements; (F) an action in a District Court of the State or the Tax
Court of the State pursuant to Minnesota Statutes Chapter 278, seeking a
reduction in the Assessed Market Value of the Property or the Minimum
Improvements; (G) an application to the commissioner of revenue of the State
requesting an abatement of real property taxes pursuant to Minnesota Statutes
Chapter 270; and (H) any other proceedings, whether administrative, legal or
equitable, with any administrative body within the City, the County, or the State
or with any court of the State or the federal government. The Developer shall not,
prior to the Maturity Date, apply for a deferral of property tax on the Property or
the Minimum Improvements pursuant to Minnesota Statutes, Section 273.86.
(e) The Developer shall include in the declarations creating
condominiums with respect to the Phase II and Phase III Improvements and in the
deeds pursuant to which units in the condominiums 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.
Section 6.5. Assessment Agreements 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 D 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).
21
ARTICLE VII
Financing
Section 7.1. Phase I Financing (a) Prior to execution and delivery of the
Deed for Parcel I from the Authority to the Developer, and in any event on or
before April 1, 1983, the Developer shall have a commitment for financing
sufficient for construction of the Phase I Improvements (taking into account equity
monies that will be provided by the Developer) and shall submit evidence of such
financing to the Authority. Such commitment shall be for either conventional
construction financing or a commitment to purchase Housing Revenue Bonds to be
issued by the Authority or the City pursuant to Minnesota Statutes Chapter 462C.
If Developer obtains the latter, and if the Authority approves such commitment
pursuant to paragraph (b) below, the Authority or the City will issue such bonds
within a reasonable time thereafter, in accordance with the provisions of
Minnesota Statutes Chapter 462C.
(b) If the Authority finds that the financing is sufficiently committed
and adequate in amount to provide for the construction of the Phase I
Improvements then the Authority shall notify the Developer in writing of its
approval. Such approval shall not be unreasonably withheld and either approval or
rejection shall be given within thirty (30) days from the date when the evidence of
such financing is delivered to the Authority. If no written rejection is made within
said thirty (30) days, such financing shall be deemed approved by the Authority. If
the Authority rejects the evidence of financing as inadequate, it shall do so in
writing specifying the basis for the rejection. In any event the Developer shall
submit adequate evidence of financing within thirty (30) days after such rejection.
Section 7.2. Phase II Financing (a) Construction Financing. Prior to
execution and delivery of the Deed for Parcel II by the Authority to the Developer,
and in any event on or before April 1, 1982, the Developer shall have a
commitment for financing sufficient for construction of the Phase II Improvements
(taking into account equity monies that will be provided by the Developer), and
shall submit evidence of such financing to the Authority. If the Authority finds
that the financing is sufficiently committed and adequate in amount to provide for
the construction of the Phase H Improvements then the Authority shall notify the
Developer in writing of its approval. Such approval shall not be unreasonably
withheld and either approval or rejection shall be given within thirty (30) days from
the date when the evidence of such financing is delivered to the Authority. If no
written rejection is made within said thirty (30) days, such financing shall be
deemed approved by the Authority. If the Authority rejects the evidence of
financing as inadequate, it shall do so in writing specifying the basis for the
rejection. The Authority may terminate this Agreement with respect to the Phase
H Improvements and the Phase III Improvements by written notice to the Developer
if the Developer fails to submit in a timely manner evidence of financing pursuant
to this Section 7.2(a) and (b), determined to be adequate by the Authority. If the
Developer submits evidence of financing which is determined by the Authority to
be inadequate, and if the Authority chooses not to so terminate this Agreement,
the Developer shall submit adequate evidence of financing within thirty (30) days
after such evidence of financing is rejected.
22
(b) End -Loan Financing. It is the expectation of the parties that some of
the potential purchasers of the residential condominium units comprising the Phase
II Improvements (the "Purchasers ") will be owners of single family residences in the
City, and will need to sell such residences in order to purchase a unit in the Phase
II Improvements. Current conventional mortgage rates and market conditions are
likely to impede the sale of such single family residences. Therefore, to enable
such potential purchasers to sell their single family residences and purchase
condominium units in the Phase II Improvements, the Developer shall offer to
purchase the single family residences of the Purchasers for six months prior to and
six months after delivery of the Certificate of Completion for the Phase U
Improvements, at a price equal to eighty -three percent (83 %) of the appraised
market value determined by an independent appraiser acceptable to the Authority,
and the Developer shall purchase the single family residences of Purchasers who
accept said offer, provided that the Developer shall not be obligated to expend
more than the amount of money set forth below to so purchase single family
residences. Prior to the conveyance of Parcel H to Developer, and in any event by
April 15, 1983, Developer shall submit to the Authority evidence of financing or a
commitment of equity of the Developer sufficient to provide Two Hundred and
Twenty -One Thousand Dollars ($221,000) for the purchase of the single family
residences pursuant to this paragraph (b). The Authority shall notify Developer of
its approval or rejection of such evidence in the manner set forth in paragraph (b)
in Section 7.1.
Section 7.3. Phase III Financing Prior to execution and delivery of the
Deed for Parcel III by the Authority to the Developer, and in any event on or
before April 1, 1983, the Developer shall have a commitment for financing
sufficient for construction of the Phase III Improvements (taking into account
equity monies that will be provided by the Redeveloper) and shall submit evidence
of such financing to the Authority. If the Authority finds that the financing is
sufficiently committed and adequate in amount to provide for the construction of
the Phase III Improvements then the Authority shall notify the Developer in writing
of its approval. Such approval shall not be unreasonably withheld and either
approval or rejection shall be given within thirty (30) days from the date when the
evidence of such financing is delivered to the Authority. If no written rejection is
made within said thirty (30) days, such financing shall be deemed approved by the
Authority.
Section 7.4. Limitation Upon Encumbrance of Property Prior to the
completion of the Phase I, Phase II or Phase III Improvements, as certified by the
Authority, neither the Developer nor any successor in interest to the Property or
any part thereof shall engage in any financing or any other transaction creating any
mortgage or other encumbrance or lien upon the respective parcels, whether by
express agreement or operation of law, or suffer any encumbrance or lien to be
made on or attach to the respective parcels, except: (a) for the purposes of
obtaining funds only to the extent necessary for constructing such Phase Improve-
ments (including, but not limited to, land and building acquisition, including the
purchase price paid for the Parcel, labor and materials, professional fees, real
estate taxes, construction interest, organizational and other indirect costs of
development, costs of constructing the Improvements for such Phase, and an
allowance for contingencies), (b) only upon the prior written approval of the
Authority, and (c) for presales of condominium units in the Phase II Improvements
or townhouse units in the Phase III Improvements to persons who will occupy such
23
units. The Authority shall not approve any Mortgage which does not contain terms
that conform to the terms of Section 7.8 of this Agreement.
Section 7.5. Approval of Mortgage The Authority shall approve a Mortgage
if: (a) the Authority first receives a copy of all mortgage documents; (b) the
Authority determines, in its sole discretion, that the mortgagee is a responsible
lender capable of and authorized to make the mortgage loan; (c) the Authority
determines, in its sole discretion, that the mortgage loan, together with other
funds available to the Developer, will be sufficient to construct the Improvements
for the Phase for which the Mortgage is sought; (d) the Authority determines, in its
sole discretion, that no Event of Default has occurred; and (e) the Authority
determines, in its sole discretion, that the terms of the Mortgage conform to the
terms of Section 7.8 of this Agreement. The approval of the Authority shall not be
unreasonably withheld.
Section 7.6. Copy of Notice of Default to Mortgagee Whenever the
Authority shall deliver any notice or demand to the Developer with respect to any
breach or default by the Developer in its obligations or covenants under the
Agreement, the Authority shall at the same time forward a copy of such notice or
demand to each Holder of any Mortgage authorized by the Agreement at the last
address of such Holder shown in the records of the Authority.
Section 7.7. Mortgagee's Option to Cure Defaults After any breach or
default referred to in Section 7.6 hereof, each such Holder shall (insofar as the
rights of the Authority are concerned) have the right, at its option, to cure or
remedy such breach or default (or such breach or default to the extent that it
relates to the part of the Property covered by its mortgage) and to add the cost
thereof to the Mortgage debt and the lien of its Mortgage: Provided That if the
breach or default is with respect to construction of the Minimum Improvements,
nothing contained in this Section or any other Section of this Agreement shall be
deemed to permit or authorize such Holder, either before or after foreclosure or
action in lieu thereof, to undertake or continue the construction or completion of
the Minimum Improvements (beyond the extent necessary to conserve or protect
Minimum Improvements or construction already made) without first having
expressly assumed the obligation to the Authority, by written agreement
satisfactory to the Authority, to complete, in the manner provided in the
Agreement, the Minimum Improvements on the Property or the part thereof to
which the lien or title of such Holder relates. Any such Holder who shall properly
complete the Minimum Improvements relating to the Property or applicable part
thereof shall be entitled, upon written request made to the Authority, to a
certification by the Authority to such effect in the manner provided in Section 4.4
of this Agreement, and any such certification shall, if so requested by such Holder,
mean and provide that any remedies or rights with respect to recapture of or
reversion or revesting of title to the Property that the Authority shall have or be
entitled to because of failure of the Developer or any successor in interest to the
Property, or any part thereof, to cure or remedy any default with respect to the
construction of the Minimum Improvements on other parts or parcels of the
Property, or because of any other default in or breach of the Agreement by the
Developer or such successor, shall not apply to the part or parcel of the Property
to which such certification relates.
24
Section 7.8. Authority Option to Cure Default on Mortgage In the event
that the Developer is in default under any Mortgage . authorized pursuant to this
Article VII of this Agreement, the mortgagee, within ten (10) days after it or any
of its agents or employees become aware of any such default, shall notify the
Authority in writing of: (a) the fact of the default; (b) the elements of the default;
and (c) the actions required to cure the default. If, within thirty (30) days after
receipt of said notice, the Authority cures any monetary defaults under the
Mortgage and commences the actions necessary to cure any other default (and
cures the other default within six (6) months after receipt of said notice), then the
mortgagee shall pursue none of its remedies under the Mortgage based upon the
said default of the Developer. In the event of a transfer of the title to the
Property to the Authority, or a third party approved by the Authority, whether or
not required to cure a default under the Mortgage, said transfer shall not
constitute an event of default under the Mortgage unless the security of the
mortgagee has, in fact, been impaired by said transfer. In the event of said
transfer (which does not impair the security of the mortgagee), the mortgagee shall
permit the transferee to assume all outstanding obligations (and receive all
remaining disbursements) under the Mortgage. The Authority will not approve any
mortgage, pursuant to Article VII of this Agreement, which does not contain terms
which conform to the terms of this Section 7.8 of this Agreement. The Authority
may modify any of the terms or requirements of this Section 7.8 by agreement with
the mortgagee of any Mortgage without the approval or consent of the Developer.
25
ARTICLE VIII
Prohibitions Against Assignment and Transfer
Section 8.1. Representation as to Redevelopment The Developer repre-
sents and agrees that its purchase of the Property, and its other undertakings
pursuant to the Agreement, are, and will be used, for the purpose of redevelopment
of the Property and not for speculation in land holding. The Developer further
recognizes that, in view of (a) the importance of the development of the Property
to the general welfare of the community; (b) the substantial financing and other
public aids that have been made available by the City and the Authority for the
purpose of making such development possible; and (c) the fact that any act or
transaction involving or resulting in a significant change in the identity of the
parties in control of the Developer or the degree of their control is for practical
o
purposes a transfer or :disposition of the property then owned by the Developer, the
qualifications and identity of the Developer, and its stockholders, are of particular
concern to the community and the Authority. The Developer further recognizes
that it is because of such qualifications and identity that the Authority is entering
into the Agreement with the Developer, and, in so doing, is further willing to
accept and rely on the obligations of the Developer for the faithful performance of
all undertakings and covenants hereby by it to be performed.
Section 8.2. Prohibition Against Transfer of Corporate Interests; Binding
Upon Stockholders Individually For the foregoing reasons, the Developer
represents and agrees that: Prior to completion of the Minimum Improvements as
iIM certified by the Authority, and without the prior written approval of the Authority,
the owner of a majority of the stock of the Developer shall not transfer or suffer
to be transferred stock of the Developer if such transfer would result in such owner
owning less than a majority of the stock of the Developer. Nor shall there be or be
suffered to be by the Developer, or by the owner of a majority of the stock of the
Developer, any other similarly significant change in the ownership or in the
relative distribution thereof, or with respect to the identity of the parties in
control of the Developer or the degree thereof, by any other method or means,
whether by increased capitalization, merger with another corporation or otherwise.
With respect to this provision, the Developer and the parties signing the Agreement
on behalf of the Developer represent that they have the authority to agree to this
provision on their behalf and to bind the corporation Po ration with respect thereto.
Section 8.3. Prohibition Against Transfer of Property and Assignment of
Agreement Also, for the foregoing reasons the Developer represents and agrees
that:
(a) Developer has not made or created, and agrees that prior to the
Maturity Date it will not make or create or suffer to be made or created any sale,
assignment, lease, any trust or power, or transfer in any form of or with respect to
the Agreement or the Property or any part thereof without the prior written
approval of the Authority, except: (i) as security for the purpose of obtaining
financing necessary for the construction of the Minimum Improvements, and any
other purpose authorized by this Agreement, (ii) to a limited partnership formed
26
for the purpose of financing all or part of the Minimum Improvements as long as
the Developer is a general partner in such limited partnership, and (iii) as the sale
of units in the Phase II or Phase III Improvements to persons who intend to be
owner- occupants of a residential unit therein.
(b) The Authority shall be entitled to require, except as otherwise
provided in the Agreement, as conditions to any such approval that: (i) Any
proposed transferee shall have the qualifications and financial responsibility, as
determined by the Authority, necessary and adequate to fulfill the obligations
undertaken in the Agreement by the Developer (or, in the event the transfer is of
or relates to Parcel I, or Parcel II, or Parcel III, such obligations to the extent that
they relate to such Parcel). (ii) Any proposed transferee, by instrument in writing
satisfactory to the Authority and in form recordable among the land records, shall,
for itself and its successors and assigns, and expressly for the benefit of the
Authority, have expressly assumed all of the obligations of the Developer under the
Agreement and agreed to be subject to all the conditions and restrictions to which
the Developer is subject (or, in the event the transfer is of or relates to part of the
Property, such obligations, conditions, and restrictions to the extent that they
relate to such part) unless the Developer agrees to continue to fulfill those
obligations, in which case the preceding provisions of this Section 8.3(b)(ii) shall not
apply: Provided That the fact that any transferee of, or any other successor in
interest whatsoever to, the Property, or any part thereof, shall, for whatever the
reason, not have assumed such obligations or so agreed, shall not (unless and only to
the extent otherwise specifically provided in the Agreement or agreed to in writing
by the Authority) relieve or accept such transferee or successor of or from said
obligations, conditions, or restrictions, or deprive or limit the Authority of or with
respect to any rights or remedies or controls with respect to the Property or the
construction of the Minimum Improvements; it being the intent of this, together
with other provisions of the Agreement, that (to the fullest extent permitted by
law and equity and excepting only in the manner and to the extent specifically
provided otherwise in the Agreement) no transfer of, or change with respect to,
ownership in the Property or any part thereof, or any interest therein, however
consummated or occurring, and whether voluntary or involuntary, shall operate,
legally or practically, to deprive or limit the Authority of or with respect to an
Y P Y P Y
rights or remedies or controls provided in or resulting from the Agreement with
respect to the Property and the construction of the Minimum Improvements that
the Authority would have had, had there been no such transfer or change. (iii)
There shall be submitted to the Authority for review all instruments and other
legal documents involved in effecting transfer; and if approved by the Authority,
its approval shall be indicated to the Developer in writing.
In the absence of specific written agreement by the Authority to the
contrary, no such transfer or approval by the Authority thereof shall be deemed to
relieve the Developer, or any other party bound in any way by the Agreement or
otherwise with respect to the construction of the Minimum Improvements, from
any of its obligations with respect thereto.
Section 8.4. Information As to Shareholders In order to assist in the
effectuation of the purposes of this Article VIII of this Agreement, the Redevel-
oper agrees that during the period between execution of the Agreement and
completion of the Minimum Improvements as certified by the Authority, (a) the
27
Developer will promptly notify the Authority of any substantial changes, or any
group of changes which taken together are substantial, in the ownership, legal or
beneficial, or of any other act or transaction involving or resulting in any
substantial change in the ownership, or with respect to the identity of the parties
in control of the Developer or the degree thereof of which it has been notified or
otherwise had knowledge or information; and (b) the Developer shall, at such time
or times as the Authority may request, but no more often than annually furnish the
Authority with a complete statement, subscribed and sworn to by a partner of the
Developer, setting forth all of the shareholders of the Developer and the extent of
their stock ownership, and in the event any other parties have a beneficial interest
in the Developer, their names and the extent of such interest, all as determined or
indicated by the records of the Developer, by specific inquiry made by any such
partner, of all parties who on the basis of such records own eleven (11) percent or
more of the Developer, and by such other knowledge or information as such partner
shall have. For purposes of this section a change in the ownership of eleven
percent (11%) or more of the stock of the Developer shall be deemed to be
substantial.
Section 8.5. Approvals Any approval required to be given by the Authority
under this Article VIII of this Agreement may be denied only in the event that the
Authority reasonably determines that the ability of the Developer to perform its
obligations under this Agreement will be materially impaired by the action for
which approval is sought.
Section 8.6. Transfer and Assignment After Delivery of the Certifica of
Completion After delivery to the Developer of the Certificate of Completion for
Parcels I, II or III or all of them, the Developer, and its successors and assigns, may
assign or transfer all or any part of its and their interest in this Agreement as to
such parcel of the Property, without the consent or approval of the Authority, and
upon such assignment or transfer being made, the Developer shall be relieved of
and released from all obligations and liabilities under this Agreement as to such
portion which have not accrued as of the effective date of such assignment or
transfer; provided, however, that Developer shall be so relieved of and released
from the obligations under Section 6.2, only (a) if such obligations are assigned and
transferred by Redeveloper and the assignee or transferee assumes, in writing, such
obligations, and (b) if the Authority consents to such assignment and transfer, and
the Authority agrees to so consent if, in the reasonable opinion of the Authority,
such assignee or transferee has the financial capability to comply with and fulfill
the Developer's obligations under said Section 6.2.
Section 8.7. Phase I Improvements Restrictions on Rental. The Developer
its successors and assigns under the Deed or Par al `� ac
apartmen F .. hale I Improvements for oc `person fifty -five years
old or older, or if an apar t pied by more than one person, at least
one of such persons sh 1 ty -five or older and all other persons
occupying an a ent in the Phase I Improvements sha -one years old
or old is restriction shall be included in the Deed for Parcel Imo_
the Land.
28
Zection 8.8. Phase H Improvements Retrictions on Sale. The Developer and
its successor d assigns under the Deed for Parce al
unit in the condom ' m buildings only for pancy by persons fifty -five years
old or older, or if a unit ' o be oce by more than one person, at least one of
such persons shall be fifty- ears old or older and all other persons who will
occupy such unit sh wenty -one old or older. This restriction shall be
included inthe' eelaration creating the coftdontinium pursuant to Nlinnesota
Statutes Chapter 515A, and in the Deed for Parcel H and s oh the Land.
29
ARTICLE IX
Project Improvements
Section 9.1. Project Improvements (a) The Authority shall arrange to have
the City make certain public improvements in the Project Area as follows:
(i) City will provide public utility and street improvements
adjacent to the Project in accordance with the provisions of Improvement
Project 1983 - 04 and 1983 - 06 and public utility improvements within the
Project in accordance with the provisions of Improvement Project 1983 -05.
(ii) All deferred special assessments and hook-up charges will be
the responsibility of the City.
(iii) Upon completion of Improvement Project 1983 - 05, all
sanitary, sewer and water main and storm sewer not located within platted
easements lying within the boundaries of the Project shall become the
property of the Developer, who in turn shall be responsible for their
operation and maintenance.
(iv) The Developer shall execute a "Utility Maintenance
Agreement" authorizing the City to enter onto the site in cases of
emergency.
(v) The City shall maintain ownership of. all "main line" storm
sewer located within platted easements in the Project.
(vi) The Developer shall submit necessary cross easements (for
utilities) to the City Attorney for review and approval.
(vii) The Developer shall remove all rubble and perform rough
grading in the Project Area prior to arrival of the City's contractor on May
1, 1983.
(viii) The City's contractor shall have unrestricted access to Parcel
III from May 1 to June 15, 1983 and shall be granted construction easements.
(of 20 feet on either side of the utility lines) in all other portions of the
Project.
(ix) The Developer shall provide necessary staking of structures to
provide control for staking and installation of utilities.
(x) The Developer shall be responsible for maintenance of the turf
areas within North Lilac Drive adjacent to the Project.
(xi) The Developer shall provide all signage determined necessary
by the City Engineer and Fire Marshall.
(xii) The Developer shall provide necessary site performance bonds
as determined appropriate by the City Manager.
30
(xiii) The City shall replat Parcels 1, II and III for the Developer and
deliver them to the Developer free of any outside interest or claim.
(xiv) The Developer shall deliver to the City Attorney for his
review and approval, all necessary restrictive covenants which bind the
Developer to the development of the appropriate sites under the
condominium philosophy. Upon completion of the structures, the Developer
shall deliver to the City Attorney for his review and approval, all necessary
condominium documents to enact and maintain a condominium development
under the provisions of the state and city.
31
ARTICLE X
Events of Default
Section 10.1. Events of Default Defined The following shall be "Events of
Default" under this Agreement and the term "Event of Default" shall mean,
whenever it is used in this Agreement (unless the context otherwise provides), any
one or more of the following events:
(a) Failure by the Developer to pay when due the payments required to
be paid under Article III and Sections 6.1, and 6.3 of this Agreement.
(b) Failure by the Developer to reconstruct the Minimum Improvements
when required pursuant to Section 5.1 of this Agreement.
(c) Failure by the Developer to submit commitments for financing to
the Authority in a timely manner pursuant to the terms and conditions of Sections
7.1, 7.2, and 7.3 of this Agreement.
(d) Failure by the Developer to commence and complete construction of
the Minimum Improvements pursuant to the terms, conditions and limitations of
this Agreement.
(e) Failure by the Developer to substantially observe or perform any
covenant, condition, obligation or agreement on its part to be observed or
performed hereunder.
(f) The exercise by the Holder of a Mortgage of any remedy provided by
the Mortgage documents or any remedy provided by law or equity in the event of a
default in any of the terms or conditions of the Mortgage.
Section 10.2. Remedies on Default (a) Whenever any Event of Default
referred to in Section 10.1 of this Agreement occurs, the Authority may take any
one or more of the following actions after providing thirty days written notice to
the Developer of the Event of Default, but only if the Event of Default has not
been cured within said thirty days or, if the Event of Default cannot be cured
within thirty days, then only if the Developer does not provide assurances to the
Authority reasonably satisfactory to the Authority that the Event of Default will
be cured and will be cured as soon as reasonably possible:
(i) Suspend its performance under the Agreement or the Deed
until the Event of Default is cured, or until the Authority receives
assurances of performance, satisfactory to the Authority.
(ii) Cancel and rescind the Agreement.
(iii) Withhold the Certificate of Completion.
(iv) Withhold the Net Proceeds from the insurance policies
provided to the Authority pursuant to Section 5.1 of this Agreement in
accordance with the terms of the policies.
32
(v) Take whatever action, including legal or administrative action,
which may appear necessary or desirable to the Authority to collect any
payments due under this Agreement, or to enforce performance and
observance of any obligation, agreement, or covenant of the Developer
under this Agreement.
(b) Without regard to anything in Section 10.2(x) to the contrary, if any
provision of this Agreement provides a period to cure an Event of Default, then the
cure provision of such section shall apply to the exclusion of the cure provision in
Section 10.2(a) hereof.
Section 10.3. Revesting Title in Authority Upon Happening of Event
Subsequent to Conveyance to Developer. In the event that subsequent to
conveyance of the Property or any part thereof to the Developer and prior to
receipt by the Developer of the Certificate of Completion:
(a) the Developer shall fail to begin construction of the Phase I
Improvements in conformity with this Agreement, such failure is not due to
Unavoidable Delays and such failure to begin construction is not cured within
thirty (30) days after written notice from the Authority to the Developer to do so;
or
(b) the Developer after commencement of construction of the Phase I
Improvements, fails to commence construction of the Phase H Improvements, or
once commencing the Phase II Improvements, fails to commence construction of
the Phase III Improvements in conformity with this Agreement, and such failure is
not due to Unavoidable Delays and such failure to begin construction is not cured
within thirty (30) days after written notice from the Authority to the Developer to
do so; or
(e) the Developer after commencement of the construction of the Phase
1, Phase II, or Phase III Improvements, fails to carry out its obligations with respect
to the construction of the Improvements for any of said Phases (including the
nature and the date for the completion thereof), or abandons or substantially
suspends construction work, such act or actions are not due to Unavoidable Delays,
P
and an such failure abandonment r suspension shall not be cured ended
y , , o , , or
remedied within thirty (30) days after written demand from the Authority to the
Developer to do so; or
(c) the Developer fails to pay real estate taxes or assessments on the
Property or any part thereof when due, or creates, suffers, assumes, or agrees to
an encumbrance or lien on the Property unauthorized b the Agreement, or shall
Y P Y Y
suffer any levy or attachment to be made, or any materialmen's or mechanics' lien,
or any other unauthorized encumbrance or lien to attach, and such taxes or
assessments shall not have been paid, or the encumbrance or lien removed or
discharged or provision satisfactory to the Authority made for such payment,
removal, or discharge, within thirty (30) days after written demand by the
Authority to do so; provided, that if the Developer shall first notify the Authority
of its intention to do so, it may in good faith contest any mechanics' or other lien
filed or established and in such event the Authority shall permit such mechanics' or
other lien to remain undischarged and unsatisfied during the period of such contest
33
and any appeal, but only if the Developer provides the Authority with a bank letter
of credit in the amount of the lien, in a form satisfactory to the Authority pursuant
to which the bank will pay to the Authority the amount of any lien in the event
that the lien is finally determined to be valid and during the course of such contest
the Developer shall keep the Authority informed respecting the status of such
defense; or
(d) there is, in violation of the Agreement, any transfer of the Property
or any part thereof, or any change in the ownership or distribution thereof of the
Developer, or with respect to the identity of the parties in control of the
Developer or the degree thereof, and such violation shall not be cured within sixty
(60) days after written demand by the Authority to the Developer; or
(e) the Developer fails to comply with any of its covenants under this
Agreement or is in breach of the Deed and fails to cure any such noncompliance or
breach within thirty (30) days after written demand from the Authority to the
Developer to do so; or
(f) the Holder of the Mortgage exercises any remedy provided by the
Mortgage documents or exercises any remedy provided by law or equity in the
event of a default in any of the terms or conditions of the Mortgage,
then the Authority shall have the right to re -enter and take possession of the any
Parcel of the Property with respect to which a condition in paragraphs (a) through
(f) exists, and to terminate (and revest in the Authority) the estate conveyed by the
Deed for such parcel to the Developer, it being the intent of this provision,
together with other provisions of the Agreement, that the conveyance of the
'r Property to the Developer shall be made upon, and that the Deed shall contain a
condition subsequent to the effect that in the event of any default on the part of
the Developer and failure on the part of the Developer to remedy, end, or abrogate
such default within the ri
e od and in the manner stated in h subdivisions,
a d uc
P the
Authority at its option may declare a termination in favor of the Authority of the
title, and of all the rights and interests in and to such parcel conveyed to the
Developer, and that such title and all rights and interests of the Developer, and any
assigns or successors in interest to and in the Property, shall revert to the
Authority, but only if the events stated in Section 10.3(a) - (f) have not been cured
within the time periods provided above, or if the events cannot be cured within
such time periods, the Developer does not provide assurances to the Authority,
reasonably satisfactory to the Authority, that the events will be cured and will be
cured as soon as reasonably possible. In addition, the existance and failure to cure
any condition in (a) through (f) above with respect to Parcel 1 will cause Parcels II
and H as well as Parcel I to revert to the Authority, and the existance and failure
to cure such condition with respect to Parcel II, will cause Parcel III to revert as
well.
Section 10.4. Resale of Reacquired Property Disposition of Proceeds.
Upon the reverting in the Authority of title to and/or possession of the Property or
any part thereof as provided in Section 10.3, the Authority shall, pursuant to its
responsibilities under law, use its best efforts to lease or sell the Property or part
thereof as soon and in such manner as the Authority shall find feasible and
consistent with the objectives of such law and of the Redevelopment Plan to a
34
t
qualified and responsible party or parties (as determined by the Authority) who will
assume the obligation of making or completing the Minimum Improvements or such
other improvements in their stead as shall be satisfactory to the Authority and in
accordance with the uses specified for such Property or part thereof in the
Redevelopment Plan. Upon such resale of the Property, the proceeds thereof shall
be applied:
(a) First, to reimburse the Authority, on its own behalf or on behalf of
the City, for all costs and expenses incurred by the Authority, including but not
limited to salaries of personnel, in connection with the recapture, management,
and resale of the Property or part thereof (but less any income derived by the
Authority from the property or part thereof in connection with such management);
all taxes, assessments, and water and sewer charges with respect to the Redevelop-
ment Property or part thereof (or, in the event the Property is exempt from
taxation or assessment or such charge during the period of ownership thereof by
the Authority, an amount, if paid, equal to such taxes, assessments, or charges (as
determined by the City assessing official) as would have been payable if the
Property were not so exempt); any payments made or necessary to be made to
discharge any encumbrances or liens existing on the Property or part thereof at the
time of revesting of title thereto in the Authority or to discharge or prevent from
attaching or being made any subsequent encumbrances or liens due to obligations,
defaults or acts of the Developer, its successors or transferees; any expenditures
made or obligations incurred with respect to the making or completion of the
Minimum Improvements or any part thereof on the Property or part thereof; and
any amounts otherwise owing the Authority by the Developer and its successor or
transf eree; and
(b) Second, to reimburse the Developer, its successor or transferee, up to
the amount equal to (1) the sum of the purchase price paid by it for the Property
(or allocable to the part thereof) and the cash actually invested by it in making any
of the Minimum Improvements on the Property or part thereof, less (2) any gains or
income withdrawn or made by it from the Agreement or the Property.
Any balance remaining after such reimbursements shall be retained by the
Authority as its property.
Section 10.5. No Remedy Exclusive No remedy herein conferred upon or
T 1
reserved to the Authority is intended to be exclusive of any other available remedy
or remedies, but each and every such remedy shall be cumulative and shall be in
addition to every other remedy given under this Agreement or now or hereafter
existing at law or in equity or by statute. No delay or omission to exercise any
right or power accruing upon any default shall impair any such right or power or
shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient. In order to
entitle the Authority or the Developer to exercise any remedy reserved to it, it
shall not be necessary to give notice, other than such notice as may be required in
this Article IX.
Section 10.6. No Additional Waiver Implied by One Waiver In the event
any agreement contained in this Agreement should be breached by either party and
35
ARTICLE XI
Additional Provisions
Section 11.1. Conflict of Interests; Authority Representatives Not Ind-
ividually Liable No member, official, or employee of the Authority or the City
shall have any personal interest, direct or indirect, in the Agreement, nor shall any
such member, official, or employee participate in any decision relating to the
Agreement which affects his personal interests or the interests of any corporation,
partnership, or association in which he is, directly or indirectly, interested. No
member, official, or employee of the Authority or the City shall be personally
liable to the Developer, or any successor in interest, in the event of any default or
breach by the Authority or the City or for any amount which may become due to
the Developer or successor or on any obligations under the terms of the
Agreement, except in the case of willful misconduct.
Section 11.2. Equal Employment Opportunity The Developer, for itself and
its successors and assigns, agrees that during the construction of the Minimum
Improvements provided for in the Agreement:
(a) The Developer will not discriminate against any employee or
applicant for employment because of race, color, creed, religion, ancestry, sex,
affectational preference, disability, age, marital status, status with regard to
public assistance, or national origin. The Developer will take affirmative action to
insure that applicants are employed, and that employees are treated during
employment, without regard to their race, color, creed, religion, ancestry, sex,
affectational preference, disability, age, marital status, status with regard to
public assistance, or national origin. Such action shall include, but not be limited
to, the following: employment, upgrading, demotion, or transfer; recruitment or
recruitment advertising; layoff or termination; rates of pay or other forms of
compensation; and selection for training, including apprenticeship. The developer
agrees to post in conspicuous places, available to employees and applicants for
employment, notices setting forth the provisions of this nondiscrimination clause.
(b) The Developer will, in all solicitations or advertisements for employ-
ees placed by or on behalf of the Developer, state that all qualified applicants will
receive consideration for employment without regard to race, color, creed,
religion, ancestry, sex, affectational preference, disability, age, marital status,
status with regard to public assistance, or national origin.
(c) The Developer will develop an affirmative action conpliance program
in - (Oct. accordance with the requirements of 41 CFR S 60-1.4 (43 FR 49242 ( 24,
1978)), and shall post notices that such program exists and the major provisions
thereof in conspicuous places available to employees and applicants for
employment.
(d) The Developer will comply with all provisions of Executive Order
11246 of September 24, 1965; and of the rules, regulations, and relevant orders of
the Secretary of Labor; and other applicable federal, state and local laws, rules and
regulations regarding equal employment opportunities.
37
(e) The Developer will furnish all information and reports required by
Executive Order 11246 of September 24, 1965, and by the rules, regulations, and
orders of the Secretary of Labor or the Secretary of Housing and Urban Develop-
ment pursuant thereto, and will permit access to the Developer's books, records,
and accounts by the Authority for purposes of investigation to ascertain
compliance with such rules, regulations, and orders.
(f) In the event of the Developer's noncompliance with the nondis-
crimination clauses of this Section, or with any of the said rules, regulations, or
orders, the Agreement may be canceled, terminated, or suspended in whole or in
part and the Developer may be declared ineligible for further Government
contracts or federally assisted construction contracts in accordance with proce-
dures authorized in Executive Order 11246 of September 24, 1965, and such other
sanctions may be imposed and remedies invoked as provided in Executive Order
11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of
Labor, or as otherwise provided by law.
(g) Developer is committed to the concept of Equal Opportunity in both
participation by women and minority business enterprises ( "W /MBE") and
employment of women and minorities, and will develop an Affirmative Action
Program to employ W /MBE, and include such program, to the extent applicable, in
contracts and purchase orders pursuant to paragraph (h) below.
(h) The Developer will include the provisions of paragraphs (a) through
(g) of this Section in every contract or purchase order (which inclusion may be
accomplished by reference in such contracts or purchase orders to the
specifications which include the provisions of paragraphs (a) through (g)), and will
I� require the inclusion of these provisions in every subcontract entered into by any of
its contractors, unless exempted by rules, regulations, or orders of the Secretary of
Labor issued pursuant to Section 204 of Executive Order 11246 of September 24,
1965, so that such provisions will be binding upon each such contractor,
subcontractor, or vendor, as the case may be. The Developer will take such action
with respect to any construction contract, subcontract, or purchase order as the
Authority may direct as a means of enforcing such provisions, including sanctions
for noncompliance. For the purpose of including such provisions in any
construction contract, subcontract, or purchase order, as required hereby, the first
three lines of this Section shall be changed to read "During the performance of this
Contract, the Contractor agrees as follows:" and the term "Developer" shall be
changed to "Contractor ".
Section 11.3. Restrictions on Use The Developer agrees for itself, and its
successors and assigns, and every successor in interest to the Property, or any part
thereof, that the Developer, and such successors and assigns, shall devote the
Property to, and only to and in accordance with, the uses specified in this
Agreement, and shall not discriminate upon the basis of race, color, creed, religion,
sex, ancestry, disability, marital status, status with regard to public assistance, or
national origin in the sale, lease, or rental or in the use or occupancy of the
Property or any improvements erected or to be erected thereon, or any part
thereof.
38
4
Section 11.4. Provisions Not Merged With Deed None of the provisions of
this Agreement are intended to or shall be merged by reason of any deed
transferring any interest in the Property and any such deed shall not be deemed to
affect or impair the provisions and covenants of this Agreement.
Section 11.5. Titles of Articles and Sections Any titles of the several
parts, Articles, and Sections of the Agreement are inserted for convenience of
reference only and shall be disregarded in construing or interpreting any of its
provisions.
Section 11.6. Notices and Demands Except as otherwise expressly provided
in this Agreement, a notice, demand, or other communication under the Agreement
by either party to the other shall be sufficiently given or delivered if it is
dispatched by registered or certified mail, postage prepaid, return receipt re-
quested, or delivered personally; and
(a) in the case of the Developer, is addressed to or delivered personally
to the Developer, 1 Sunwood Drive, St. Cloud, Minnesota 56301;
(b) in the case of the Authority, is addressed to or delivered personally
to the Authority at 6301 Shingle Creek Parkway, Brooklyn Center, Minnesota
55430;
or at such other address with respect to either such party as that party may, from
time to time, designate in writing and forward to the other as provided in this
Section.
Section 11.7. Counterparts. This Agreement is executed in any number of
counterparts, each of which shall constitute one and the same instrument.
Section 11.8. Modification In the event that a Holder of a Mortgage
requests changes in this Agreement and /or in the Deed as a condition to lending
money to defray, in whole or in part, the cost of constructing the Minimum
Improvements, the Authority will make such changes which are reasonably
Y g Y
requested and which the Authority determines will not be substantially negatively
affect the position of the Authority hereunder, and which the Authority determines
to be reasonable in light of all the relevant circumstances.
39
IN WITNESS WHEREOF, the Authority has caused this Agreement to be duly
executed in its name and behalf and its seal to be hereunto duly affixed and the
Developer has caused this Agreement to be duly executed in its name and behalf on
or as of the date first above written.
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF BROOKLYN CENTER, MINNESOTA
By
And by
BRUTGER COMPANIES, INC.
By
J. Michael Podawiltz
Its Executive Vice President
This instrument was drafted by:
HOLMES & GRAVEN, Chartered
470 Pillsbury Center
Minneapolis, Minnesota 55402
40
EXHIBIT A
[Legal Description of the Property]
PARCEL I:
PARCEL II:
PARCEL III:
41
EXHIBIT B -1
QUIT CLAIM DEED
THIS INDENTURE, between The Housing and Redevelopment Authority in
and for Brooklyn Center, Minnesota, a public body corporate and politic created
pursuant to the Laws of Minnesota (the "Grantor ") and Brutger Companies, Inc., a
Minnesota corporation (the "Grantee ").
WITNESSETH, that Grantor, in consideration of the sum of
Dollars ($ ) the receipt whereof is hereby
acknowledged, does hereby grant, bargain, quitclaim and convey to the Grantee, its
successors and assigns forever, all the tract or parcel of land lying and being in the
County of Hennepin and State of Minnesota described as follows, to -wit (such tract
or parcel of land is hereinafter referred to as the "Property "):
LEGAL DESCRIPTION
To have and to hold the same, together with all the hereditaments and
appurtenances thereunto belonging in anywise appertaining, to the said Grantee, its
successors and assigns, forever,
P rovided:
SECTION 1.
It is understood and agreed that this Deed is subject to the covenants,
conditions, restrictions and provisions of an agreement entered into between the
Grantor and Grantee on the day of , 1983, identified as
"Contract for Private Development" (hereafter referred to as the "Agreement ")
and that the Grantee shall not convey this Property, or any part thereof, without
the consent of the Grantor until a certificate of completion releasing the Grantee
from certain obligations of said Agreement as to this Property or such part thereof
then to be conveyed, has been placed of record. This provision, however, shall in
no way prevent the Grantee from mortgaging this Property in order to obtain funds
for the purchase of Property hereby conveyed and for erecting improvements
thereon in conformity with the Agreement, and applicable provisions of the Zoning
Ordinance of the City of Brooklyn Center, Minnesota.
It is specifically agreed that the Grantee shall promptly begin and diligently
prosecute to completion the development of the Property through the construction
of the improvements thereon, as provided in the Agreement.
Promptly after completion of the improvements in accordance with the
provisions of the Agreement, the Grantor will furnish the Grantee with an
appropriate instrument so certifying. Such certification by the Grantor shall be
(and it shall be so provided in the certification itself) a conclusive determination of
satisfaction and termination of the agreements and covenants of the Agreement
and of this Deed with respect to the obligation of the Grantee, and its successors
and assigns, to construct the improvements and the dates for the beginning and
completion thereof. Such certification and such determination shall not constitute
B1 -1
evidence of compliance with or satisfaction of any obligation of the Grantee to any
holder of a mortgage, or any insurer of a mortgage, securing money loaned to
finance the purchase of the Property hereby conveyed or the improvements, or any
part thereof.
All certifications provided for herein shall be in such form as will enable
them to be recorded with the County Recorder, or Registrar of Titles, Hennepin
County, Minnesota. If the Grantor shall refuse or fail to provide any such
certification in accordance with the provisions of the Agreement and this Deed,
the Grantor shall, within thirty (30) days after written request by the Grantee,
provide the Grantee with a written statement indicating in adequate detail in what
respects the Grantee has failed to complete the improvements in accordance with
the provisions of the Agreement or is otherwise in default, and what measures or
acts will be necessary, in the opinion of the Grantor, for the Grantee to take or
perform in order to obtain such certification.
SECTION 2.
In the event the Grantee herein shall, prior to the recording of the
certificate of completion, hereinabove referred to:
(a) Fail to begin construction of the Phase Improvements
(as defined in the Agreement) in conformity with the Agreement and such
failure is not due to Unavoidable Delays (as defined in the Agreement) and
s failure such ai ure is not r within i f written notice from
eu ed w th n th rt 0 days after wr
3
Y ( ) Y
the Grantor to the Grantee to do so; or
(b) Fail to carry out its obligations with respect to the construc-
tion of the Phase Improvements (as defined in the Agreement), or
shall abandon or substantially suspend construction work, and such failure,
abandonment, or suspension is not due to Unavoidable Delays (as defined in
the Agreement), and any failure, abandonment or suspension shall not be
cured, ended or remedied within thirty (30) days after written demand from
the Grantor to the Grantee to do so; or
(c) Fail to pay real estate taxes or assessments on the Property or
any part thereof when due, or creates, suffers, assumes, or agrees to any
encumbrance or lien on the Property unauthorized by the Agreement with.
the Grantor, or shall suffer any levy or attachment to be made, or any
materialmen's or mechanic's liens, or any other unauthorized encumbrances
or liens to attach, and such taxes or assessments shall not have been paid or
the encumbrance or lien removed or discharged, or provisions satisfactory to
the Grantor made for such payments, removal or discharge, within thirty
(30) days after written demand by the Grantor to do so, provided, that if the
Redeveloper shall first of t G f i intention i m
no he Grantor o is ntent on to do so t i
P Y may n
faith a th contest any mechanics or ether Lien filed or established and in
such event the Grantor shall permit such mechanics' or other lien to remain
undischarged and unsatisfied durin g the period of such contest and any
appeal, but only if the Redeveloper provides the Grantor with a bank letter
of credit in the amount of the lien, in a form satisfactory to the Grantor
pursuant to which the bank will pay to the Grantor the amount of any lien in
the event that the lien is finally determined to be valid and during the
B1 -2
course of such contest the Redeveloper shall keep the Grantor informed
respecting the status of such defense; or
(d) Cause or permit in violation of the Agreement, any transfer of
the Property or any part thereof, or any change in the ownership or
distribution of the Grantee, or with respect to the identity of the parties in
control of the Grantee or the degree thereof, and such violation shall not be
cured within sixty (60) days after written demand by the Grantor to the
Grantee; or
(e) Fail to comply with any of its covenants under the Agreement
and fail to cure any such noncompliance within thirty (30) days after written
demand from the Grantor to the Grantee to do so; or
(f) Default under the terms of a mortgage loan authorized by
Article VII of the Agreement and the holder of the mortgage exercises any
remedy provided by the mortgage documents or exercises any remedy
provided by law or equity in the event of a default in any of the terms or
conditions of the mortgage;
then the Grantor shall have the right to re -enter and take possession of the
Property and to terminate and revest in the Grantor the estate conveyed by this
Deed to the Grantee, its assigns or successors in interest, but only if the events
stated in Section 2(a) -(f) have not been cured within the time periods provided
above, or if the events cannot be cured within such time periods, the Grantee does
not provide assurances to the Grantor, reasonably satisfactory to the Grantor, that
the events will be cured and will be cured as soon as reasonably possible.
SECTION 3.
The Grantee agrees for itself and its successors and assigns to or of the
Property or any part thereof, hereinbefore described, that the Grantee and such
successors and assigns shall:
(a) Not discriminate on the basis of race, color, creed, national
origin, or sex in the sale, lease, rental, or in the use or occupancy of the
Property or any improvements erected or to be erected thereon, or any part
thereof; and
(b) Not cause the Property to be removed from the public tax
rolls or to become exempt from assessment for general real estate taxes by
reason of any conveyance, lease, abatement, or other action so long as tax
increment generated by the Property is pledged to the payment of the
principal of and interest due on outstanding bonds or other obligations; and
(c) Not apply for or seek through administrative or judicial
proceedings a reduction in real property taxes but only if such reduction
would reduce taxes to an amount below the amount needed to pay the
principal and interest due on the bonds or obligations for which tax
increment generated by the Property is pledged; and
BI-3
r
(d) Not cause or permit the construction of residential housing
units on the Property at a density greater than that constructed pursuant to
the Agreement, even if a greater density would be permitted under the
zoning ordinance of the City of Brooklyn Center.
It is intended and agreed that the above and foregoing agreements and
covenants shall be covenants running with the land, and that they shall, in any
event, and without regard to technical classification or designation, legal or
otherwise, and except only as otherwise specifically provided in this Deed, be
binding, to the fullest extent permitted by law and equity for the benefit and in
favor of, and enforceable by, the Grantor, its successors and assigns, and any
successor in interest to the Property, or any part thereof against the Grantee, its
successors and assigns, and every successor in interest to the Property, or any part
thereof or any interest therein, and any party in possession or occupancy of the
Property or any part thereof.
In amplification, and not in restriction of, the provisions of the preceding
section, it is intended and agreed that the Grantor and its successors and assigns
shall be deemed beneficiaries of the agreements and covenants provided herein,
both for and in their own right, and also for the purposes of protecting the interest
of the community and the other parties, public or private, in whose favor or for
whose benefit these agreements and covenants have been provided. Such agree-
ments and covenants shall run in favor of the Grantor without regard to whether
the Grantor has at any time been, remains, or is an owner of any land or interest
therein to, or in favor of, which such agreements and covenants relate. The
Grantor shall have the right, in the event of any breach of any such agreement or
covenant to exercise all the rights and remedies, and to maintain any actions or
suits at law or in equity or other proper proceedings to enforce the curing of such
breach of agreement or covenant, to which it or any other beneficiaries of such
agreement or covenant may be entitled.
SECTION 4.
This Deed is also given subject to:
(a) Provision of the ordinances, building and zoning laws of the
City of Brooklyn Center, state and federal laws and regulations in so far as
they affect this real estate.
(b) Taxes payable subsequent to the date of this conveyance.
IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly
executed in its behalf by its and and has caused
its corporate seal to be hereunto a ixed this day of , 19_
B1 -4
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR BROOKLYN
CENTER, MINNESOTA
By
Its Chairperson
By
Its Secretary
This instrument was drafted by the
offices of Holmes & Graven, Char-
tered, 470 Pillsbury Center, Min-
neapolis, Minnesota 55402.
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
On this day of , 19_, before me, a notary public
within and for e�I nnepin County, person y appeared and
to me personally known who by me d uly sworn, dFd say
that they are the Chairperson and Secretary of The Housing and Redevelopment
Authority in and , for Brooklyn Center ( "Authority ") named in the foregoing
instrument; that the seal affixed to said instrument is the seal of said Authority;
that said instrument was signed and sealed on behalf of said Authority pursuant to
a resolution of its Board of Commissioners; and said Chairperson and Secretary
acknowledged said instrument to be the free act and deed of said Authority.
Notary Public
B1 -5
EXHIBIT C
ASSESSMENT AGREEMENT
and
ASSESSOR'S CERTIFICATION
By and among
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR BROOKLYN CENTER,
BRUTGER COMPANIES, INC.
and
CITY ASSESSOR OF THE CITY OF BROOKLYN CENTER
This Document was drafted by:
HOLMES & GRAVEN, Chartered
470 Pillsbury Center
Minneapolis, Minnesota 55402
THIS AGREEMENT, dated as of this day of , 1983, by
and among The Housing and Redevelopment Authority in and for Brooklyn Center
(the "Authority "), Brutger, Inc. (the "Developer "), and the City Assessor of the City
of Brooklyn Center (the "Assessor ").
WITNESSETH, that
WHEREAS, on or before the date hereof the Authority and Developer have
entered into a Contract for Private Development (the "Contract ") regarding
certain real property located in Brooklyn Center, pursuant to which the Authority
referred to as the "Property" and legall
is to acquire certain property, hereinafter p y g y
described in Schedule A attached hereto; and
WHEREAS, it is contemplated that pursuant to said Contract the Developer
will construct a multi -story residential rental apartment facility with
approximately sixty -five units; and
WHEREAS, the Authority and Developer desire to establish a minimum
market value for said land and the improvements to be constructed thereon,
pursuant to Minnesota Statutes Section 273.76, Subdivision 8; and
WHEREAS, the Authority and the Assessor have reviewed the preliminary
plans and specifications for the improvements which it is contemplated will be
erected;
NOW, THEREFORE, the parties to this Agreement, in consideration of the
II ' romises covenants and agreements made each to the other, do hereby a
promises, g by � Y ree as g
f ollows:
1. Upon substantial completion of construction of the above referenced
improvements by the Redeveloper, the minimum market value which shall be
assessed for the land described in Exhibit A, with the residential rental apartment
facility constructed thereon, shall be One Million Five Hundred Ninety One
Thousand and Five Hundred Dollars ($1,591,500). The parties to this Agreement
expect that the construction of the above - referenced improvements will be
completed on or before December 31, 1983.
2. . The minimum market value herein established shall be of no further
force and effect and this Agreement shall terminate on the earlier of the
following: (a) May 1, 1998; or (b) The date when the improvements constructed on
the land described in Exhibit A have been substantially destroyed by fire or other
casualty.
The events referred to in Section 2(b) and 2(c) of this Agreement shall be evidenced
by a certificate or affidavit executed by the Authority.
3. This Agreement shall be promptly recorded together with a Deed to
the Property from the Authority to the Developer, by the Developer with a copy of
Minnesota Statutes, Section 273.76, Subdivision 8, set forth in Schedule B hereto.
The Ieveloper sh pay all costs of recording.
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t . e
4. Neither the preambles nor provisions of this Agreement are intended
to, nor shall they be construed as, modifying the terms of the Contract between
the Authority and the Redeveloper.
5. This Agreement shall inure to the benefit of and be binding upon the
successors and assigns of the parties.
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR BROOKLYN
CENTER
By
Its Chairperson
By
Its Secretary
BRUTGER, INC.
By
Its
By
Its
STATE OF MINNESOTA )
SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
198_, by and , the
and of The Housing and
Redevelopment Authority in and for Brooklyn Center.
Notary Public
STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _ day of
198_ by , and
the and of
Brutger Companies, Inc., a Minnesota corporation, on behalf of the corporation.
Notary Public
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CERTIFICATION BY CITY ASSESSOR
The undersigned, having reviewed the plans and specifications for the
improvements to be constructed and the market value assigned to the land upon
which the improvements are to be constructed, and being of the opinion that the
minimum market value contained in the foregoing Agreement appears reasonable,
hereby certifies as follows: The undersigned Assessor, being legally responsible for
the assessment of the above described property, hereby certifies that the market
value assigned to such land and improvements upon completion of the improve-
ments to be constructed thereon shall not be less than One Million Five Hundred
Ninety One Thousand and Five Hundred Dollars ($1,591,500) until termination of
this Agreement.
City Assessor for the City
of Brooklyn Center
STATE OF MINNESOTA )
SS
COUNTY OF Hennepin )
The foregoing instrument was acknowledged before me this _ day of
198 — , by , the City Assessor of the City of
Brooklyn Center.
Notary Public
C -3
SCHEDULE A TO THE ASSESSMENT AGREEMENT
By and Among
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR BROOKLYN CENTER,
BRUTGER COMPANIES, INC.
and
CITY ASSESSOR FO THE CITY OF BROOKLYN CENTER
Legal Description of the Property
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SCHEDULE B TO THE ASSESSMENT AGREEMENT
By and Among
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR BROOKLYN CENTER,
BRUTGER COMPANIES, INC.
and
CITY ASSESSOR FOR THE CITY OF BROOKLYN CENTER
Section 273.76, Subd. 8. Assessment agreements. An authority may, upon
entering into a development or redevelopment agreement pursuant to section
273.75, subdivision 5, enter into a written assessment agreement in recordable
form with the developer or redeveloper of property within the tax increment
financing district which establishes a minimum market value of the land and
completed improvements to be constructed thereon until a specified termination
date, which date shall be not later than the date upon which tax increment will no
longer be remitted to the authority pursuant to section 273.75, subdivision 1. The
assessment agreement shall be presented to the county assessor, or city assessor
having the powers of the county assessor, of the jurisdiction in which the tax
increment financing district is located. The assessor shall review the plans and
specifications for the improvements to be constructed, review the market value
previously assigned to the land upon which the improvements are to be constructed
and, so long as the minimum market value contained in the assessment agreement
appears, in the judgment of the assessor, to be a reasonable estimate, shall execute
the following certification upon such agreement:
The undersigned assessor, being legally responsible for the assessment
of the above- described property upon completion of the improve-
ments to be constructed thereon, hereby certifies that the market
value assigned to such land and improvements upon completion shall
not be less than $
Upon transfer of title of the land to be developed or redeveloped from the
authority to the developer or redeveloper, such assessment agreement, together
with a copy of this subdivision, shall be filed for record and recorded in the office
of the county recorder or filed in the office of the registrar of titles of the county
where the real estate or any part thereof is situated. Upon completion of the
improvements by the developer or redeveloper, the assessor shall value the
property pursuant to section 273.11, except that the market value assigned thereto
shall not be less than the minimum market value contained in the assessment
agreement. Nothing herein shall limit the discretion of the assessor to assign a
market value to the property in excess of the minimum market value contained in
the assessment agreement nor prohibit the developer or redeveloper from seeking,
through the exercise of administrative and legal remedies, a reduction in market
value for property tax purposes; provided, however, that the developer or redevel-
oper shall not seek, nor shall the city assessor, the county assessor, the county
auditor, any board of review, any board of equalization, the commissioner of
revenue or any court of this state grant a reduction of the market value below the
minimum market value contained in the assessment agreement during the term of
the agreement filed of record regardless of actual market values which may result
from incomplete construction of improvements, destruction or diminution by any
C -5
` cause, insured or uninsured, except in the case of acquisition or reacquisition of the
property by a public entity. Recording or filing of an assessment agreement
complying with the terms of this subdivision shall constitute notice of the
agreement to any subsequent purchaser or encumbrancer of the land or any part
thereof, whether voluntary or involuntary, and shall be binding upon them.
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EXHIBIT D
CERTIFICATE OF COMPLETION AND RELEASE OF FORFEITURE
WHEREAS, The Housing and Redevelopment Authority in and for the City of
Brooklyn Center, a body politic and corporate, by a Deed recorded in the Office of
the County Recorder and the Registrar of Titles in and for the County of Hennepin
and State of Minnesota, as Deed Document Number(s) and
respectively, has conveyed to Brutger Companies, Inc., a Minnesota
corporation, the following described land in the County of Hennepin and State of
Minnesota, to -wit:
and
WHEREAS, said Deed contained certain covenants and restrictions, the
breach of which by Grantee, its successors and assigns, would result in a forfeiture
and right to re -entry by Grantor, its successors and assigns, said covenants and
restrictions being set forth in Section 1 and 2 of said Deed; and
WHEREAS said Grantee has fully and duly performed all of said covenants
and conditions insofar as it is able:
NOW, THEREFORE, this is to certify that all building construction and
other physical improvements specified to be done and made by purchaser of the
property have been completed and all of the above covenants and conditions in said
Deed have been duly and fully performed by the Grantee therein and that the
provisions for forfeiture of title and right to re -entry for breach of condition
subsequent by the Grantor therein is hereby released absolutely and forever insofar
as it applies to the land described herein, and the County Recorder and the
Registrar of Titles in and for the County of Hennepin and State of Minnesota are
hereby authorized to accept for recording and to record, the filing of this
instrument, to be a conclusive determination of the satisfactory termination of the
covenants and conditions of the contract referred to in said Deed, the breach of
which would result in a forfeiture and right of re- entry, but the covenants created
by Section 3 of said Deed shall remain in full force and effect.
Dated: , 198_,
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
IN THE PRESENCE OF: OF BROOKLYN CENTER
By
By
Member introduced the following resolution and
moved its adoption
RESOLUTION NO.
RESOLUTION OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE C1TY OF BROOKLYN CENTER AUTHORIZING THE CITY TO UNDERTAKE
THE CONSTRUCTION OF PR OJECT IM PROVEME N TS _
WHEREAS, the Housing and Redevelopment Authority in and for the City
of Brooklyn Center, Minnesota (the "Authority ") is authorized by the Municipal
Housing and Redevelopment Act, M innes ot a Statutes Sections 462.411 et . seq.
(the "Act ") to carry out housing development projects in order to alleviate a
shortage of decent, safe and sanitary housing for persons of low or moderate
income and their families as such income is determined by the Authority pursuant
to the Act; and
WHEREAS, the Authority by Resolution No. has determined (a)
that there is not available within the City of Brooklyn Center (the "City ") an
adequate supply of decent, safe and sanitary housing provided by private
enterprise for persons and families of low or moderate income; and (b) that
the Authority should acquire certain real property (the "Property ") for the
purpose of undertaking a housing development project; and
WHEREAS, the City Council of the City by Resolution No.
authorized the Authority to exercise the power of eminent domain to acquire
the Property in connection with such housing development project; and
s WHEREAS, the Authority is acquiring the Property using the power of
eminent domain and is negotiating a contract for private development of the
Property (the "Development Contract ") with Brutger Companies, Inc. pursuant to
which contract the Authority would make certain project improvements (the
"Project Improvements ") with respect to the Property and convey the Property to
Brutger Companies, Inc., in exchange for which Brutger Companies, Inc. would
construct certain residential apartment, condominium, and townhouse units; and
WHEREAS, pursuant to Minnesota Statu tes, Section 462.445, Subdivision 1
(2) the Authority is authorized to use the services of local public bodies so
far as practicable in its area of operation; and
WHEREAS, the Authority desires the City to undertake the construction of
the Project Improvements, including extension of the watermains, storm and
sanitary sewers, and street curb and gutter improvements on behalf of the Authority
in accordance with the Development Contract upon execution of such Development
Contract.
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Housing and Redevelopment Authority in and for the City of Brooklyn Center:
1. That the Authority hereby requests that, upon execution of the
Development Contract, the City, on behalf of and in cooperation with the Authority,
undertake the construction of the Project Improvements pursuant to the plans
and specifications for such improvements on file with the city engineer;
i
RESOLUTION NO.
2. That the P
Authority y will. ay the costs incurred by the City in
connection with the construction of the Project Improvements, in an amount
not to exceed $435,000.00; and
3. That the staff of the Authority is directed to notify the City
Engineer upon execution of the Development Contract, and to coordinate the
timing of the construction of the Project Improvements.
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.
Member introduced the following resolution and moved
its adoption:
RESOLUTION NO.
RESCLUTIO14 AUTHORIZING A TEMPORARY IMPROVEMENT LOAN FROM
THE CITY OF BR CENTER INVESTMENT FUND
WHEREAS, there is a need for interim financing for the costs of land
acquisition and preparation of the land for the construction of the Brookwood
Senior Housing Project; and
WHEREAS, said interim financing is available from the City of Brooklyn
Center Investment Trust Fund; and
WHEREAS, said interim financing will be replaced with permanent
financing by the issuance of bonds when final costs have been determined:
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority of Brooklyn Center, Minnesota (HRA) to authorize the issuance of a
General Obligation Master Note to the City of Brooklyn Center Investment Trust
upon which, from time to time, the HRA will borrow funds as needed to make
contract payments. Interest will be paid at the rate of ten percent per annum
from the date of each advance on the loan until the principal amount is paid.
Interest will be accrued annually on the thirty -first day of December until
refunded not more than three years from the date of the issuance of the note.
Date Mayor
ATTEST:
Clerk
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.
a
J
�rr
Member introduced the following resolution and
moved its adoption:
RESOLUTION NO.
RESOLUTION APPROVING THREE (3) BROOKLYN CENTER HOUSING
REHABILIT GRANTS
WHEREAS, the Brooklyn Center Housing & Redevelopment Authority has
established a Home 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 three (3) 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 $24,750.
NOW, THEREFORE, BE IT RESOLVED by the Brooklyn Center Housing &
Revdevelopment Authority that:
1. The Brooklyn Center Housing & Redevelopment Authority does
approve the three (3) housing rehabilitation grant applications
as recommended by the staff.
2. That the work be performed as recommended in the confidential
memorandum dated April 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.