HomeMy WebLinkAbout1982 08-30 CCP Special Session i
CITY COUNCIL AGENDA
CITY OF BROOKLYN CENTER
SPECIAL SESSION
AUGUST 30, 1982
7:00 P.M.
1. Call to Order
2. Roll Call
3. Public Hearing (7:00 p.m.)
Proposal to Undertake and Finance a Single Family Housing Program Under
Minnesota Statutes Chapter 462C, As Amended
a. Resolution Approving Mortgage Revenue Bonds
4. Planning Commission Items:
-The following Planning Commission items were tabled at the August 23, 1982
meeting 's meeting to allow time for the applicant to
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complete the landscaping plan for the application.
a. Planning Commission Application No. 82020 submitted by Hussman Investment
Company as a. request to rezone from Rl to R3 two parcels on land on the
south side in the 800 block of 70th. Avenue North. This item was con -
sidered at the August 12, 1982 Planning Commission meeting and was
recommended for approval by the Commission.
b. Planning Commission Application Nos. 82031 and 82032 submitted by
Hussman Investment Company for a site and building plan and preliminary
plat approval for an eight -unit site
project on the south side of
70th Avenue North. These items were considered at the August 12, 1982
Planning Commission meeting and were recommended for approval by the
commission.
5. Resolution Regarding Disposition of Planning Commission Application No. 82020
Submitted by Hussman Investment Company
6. Convene Special Executive Session
-Labor negotiations and budgetary impact
7. Adjournment
M & C No. 82 -6
August 27, 1982
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FROM THE OFFICE
OF THE CITY MANAGER
CITY OF BROOKLYN CENTER
Subject: Single Family Mortgage Revenue Bond Program
To the Honorable Mayor and City Council:
Attached please find a document which will be the basis for the public hearing and
application to the State of Minnesota for authorization to sell mortgage revene
bonds for single family dwellings. As you will notice in the first part of the
attached document, the City Council must declare that in order to "preserve the
quality of life within Brooklyn Center there is a need for safe and sanitary housing
stock" and there -is a need at this point in time to provide affordable housing for
persons of low and moderate income in Brooklyn n Center,and that basically there is a y
shortage of mortgage money available to these kinds of home buyers.
Obviously, under current market conditions, it is not hard to make that kind of declara-
tion,and this general law and authority under Minnesota Statute can be used and fits into
the program we have in conjunction with our senior citizen housing program. Representa-
tives of the bonding house, Mr. Hoffman and I will be available Monday evening to answer
any questions you may have of a specific nature after you have had an opportunity to read
this report.
By way of background, the State Housing Redevelopment Authority and our law firm mentioned
to Brad Hoffman a couple of weeks ago there were still 1982 allocations available under
this program through the State, and it looked as if it might be applicable for our senior
10 housing project. To keep our options open we requested that you allow us to place proper
notice in the paper and hold the hearing now scheduled for this Monday evening. If you
act favorably on our recommendations, you will be approving application to the State of
Minnesota Housing Finance Agency to reserve up to $10 million of this capacity for the
City of Brooklyn Center's program. There is a possibility that the City of Robbinsdale
and possibly Crystal will be going.in with us on this program where we would be selling
our bonds and their bonds jointly, which may make it a more attractive issue.
I encourage you to read the attached document thoroughly as it does outline the program
pretty clearly. In summary, these bond monies will be used to create a mortgage source
for the first home buyers who will be buying the homes the senior citizens will be
leaving. we contemplate not adding any additional City personnel to handle this program.
We would be using a local or a group of local financial institutions to handle all of the
mortgage work.
Again, I wish to remind you that by approving the application for this authority to bond
through the State Housing and Finance Agency on Monday night you would not be authorizing
the sale of bonds. You would be merely approving an application and then..you would have,
if approved by the State, until December 30, 1982 to decide and actually complete a bond
sale. We recommend you proceed with this first step to keep our options open for the
last four months of 1982. If for some reason we find the bond market is in such a situa-
tion that rates are falling toward the end of the year and will continue to fall the
.first part of next year, we could let our option of selling bonds this year pass and
reapply for next year. However, next year we can expect keener competition for these
bonding funds from other municipalities.
Res ectfu submitted,
Gerald . Splinter I
City Manager
CITY OF BROOKLYN CENTER
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SINGLE MILY MORTGAGE REVENUE /46ZC, RAM
Pursuant o Minnesota Statutes, Chs amended in 1982 the City
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of Brooklyn Cente has been authoriz to develop and administer programs of s
making or purchasing ortgage loa*s to finance the -acquisition of single- family
housing located anywhere w hin is boundaries, for occupancy primarily by persons
of low and moderate income., . creating its housing finance program, the City
Council of the City of Brooklyn Center has found and determined that the
preservation of the quality of life in th City of Brooklyn Center is dependent upon
the maintenance and provision of adequa , decent, safe and sanitary housic - --
stock; that accomplishing the provision of suc housing stock is a public purpose
and will benefit the ;citizens of the City of Broo yn Center that a need exists
within the City of ;-Brooklyn Center to provide in a t ely fashion additional and
affordable housing to persons of low and moderate income esiding and expected to
reside in the Ci4� of Brooklyn Center that a need exists for ortgage credit to be
made available for the new construction of additional single -f ily housing; and
that many owners are unable to sell housing units and would -b purchasers of
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sin le famil housing units are unable to either afford mortgage edit at the
single-family
market rate of interest or obtain mortgage credit because the mortgage market is
severely restricted.
The City Council of the City of Brooklyn Center in establishing this housing
finance program, has considered the information contained in the foregoing
sections of the attached Housing Plan, including particularly (i) the availability and
affordability of other government housing programs; (ii) the- availability and
affordability of private market financing for the acquisition of existing and newly
constructed housing units; (iii) an analysis of population and employment trends and
projections of future population trends and future employment needs; (iv) the
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recent housing trends of the City of Brooklyn Center and future housing needs in
the City of Brooklyn Center and (v) an analysis of how the program will meet the
needs of low and moderate income persons and families residing and expected to
reside in the City of Brooklyn Center.
The City Council has further considered (i) the amount, timing and sale of
bonds to finance the estimated amounts of mortgage loans to be made under the
program, to fund the appropriate reserves and to pay the costs of issuance; (ii) the
number and qualifications of lenders eligible to participate in the program; (iii) the
method for monitoring the implementation by participants to insure that the
program is consistent with the Housing Plan of the City of Brooklyn Center and its
objectives; (iv) the method of administering, servicing and supervising the program;
(v) the cost to the City of Brooklyn Center including future administrative
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expenses; (vi) the restrictions on the purchase prices of housing units to be financed
under the program; (vii) the maximum permitted income of persons or families
receiving financing under the program; and (viii) certain other limitations.
Subsection 1. Definitions
The following terms when used in this Section shall have the following
meanings, respectively:
(1) "Acquisition Fund" shall mean that fund (created pursuant to an
indenture of trust by and between the City and the trustee for the
Bonds) into which shall be deposited certain proceeds of the Bonds and
other funds, if any and from which the City shall purchase Mortgage
Loans qualified for purchase under the Program.
(2) "Act" shall mean Minn. Stat., Section 46X.01, et. seq., as currently in
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effect and as the same may be from time to time amended.
(3) "Adjusted Gross Income" shall mean Gross Family Income, less $750 for
each adult in the family, to a maximum of two adults, and less $500 for
each other Dependent in the family.
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(4) "Agency" shall mean the Minnesota Housing Finance Agency, or any
successor to its functions under the Act.
(5) "Bonds" shall mean the revenue bonds in the amount of $ to be
issued by the City to finance the Program.
(6) "Builder" or "Developer" shall mean any person or business entity
engaged in the construction for sale of Housing Units. In the event that
any Builder or Developer owns more than fifty percent (50 %) interest in
any other business entity engaged in the construction for sale of
Housing Units, all such entities shall be considered the same Builder or
Developer for the purposes of this Program.
(7) "City" shall mean the City of Brooklyn Center County of Hennepin,
State of Minnesota, or any housing and redevelopment authority in and
for the City of Brooklyn Center authorized by ordinance of the City
Council to exercise, on its behalf, the powers conferred on the City
under the Act.
(8) "City Council" shall mean the city council of the City. s
(9) "Commencement Date" shall mean the date on which the City has bond
proceeds available to purchase Mortgage e Loans under this Program, or
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if only New Housing Units are to be purchased with Mortgage Loan
Proceeds, the date on which pre -sale to market New Housing Units has
commenced.
(10) "Dependent" shall mean dependent, as defined in Section 152 of the
Internal Revenue Code of 1954, as amended, and the regulations
thereunder.
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(11) "FHLMC" shall mean the Federal Home Loan Mortgage Corporation, or
any successor to its functions.
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(12) "FHA" shall mean the Federal Housing Administration, an agency of the
United States of America within the United States Department of
Housing and Urban Development, or any successor to its functions.
(13) "FNMA" shall mean the Federal National Mortgage Association, or any
successor to its functions.
(14) "Gross Family Income" shall mean the current annual income from all
sources as determined in accordance with the then current loan
origination requirements of either FHLMC, FNMA, FHA or VA related
to mortgage loans originated under programs regulated by FHLMC,
FNMA, FHA or VA, or private mortgage insurance as the case may be,
as verified by an Originator in accordance with such requirements and
its customary underwriting practices, of the Mortgagor, his or her
spouse, and any co -owner of a fee interest in the Housing Unit to be
financed with the proceeds of a Mortgage Loan.
(15) "Housing Plan" shall mean the Housing Plan of the City of Brooklyn
Center, Minnesota, adopted on , setting forth the requirements
of the Act.
(16) "Housing Unit" shall mean residential real property and facilities
functionally related and subordinate thereto securing a Mortgage Loan,
which shall be a private detached or attached one - family dwelling, or a
one- family apartment under condominium (as defined in Minn. Stat.,
Chapter 515A) or cooperative ownership (not including a mobile home
or trailer even if attached to a permanent foundation), including New
Housing Units, owned and occupied by. one person or family as a
principal residence, containing complete living facilities and located
within the geographical boundaries of the City.
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(17) "Lending Institution" shall mean any bank, trust company, savings bank,
national banking association, savings and loan association, building and
loan association, mortgage bank or other financial institution or gov-
ernmental agency which customarily makes or services mortgage loans
on owner - occupied residential housing in the City, or any holding
company for any of the foregoing, provided, however, such Lending
Institution is approved by FHA, VA, FNMA or FHLMC.
(18) "Mortgage Insurer" shall mean the FHA, the VA or any Qualified
Mortgage Guaranty Insurer.
(19) "Mortgage Loan" shall mean an interest bearing loan to a Mortgagor for
the ose of purchasing a Housing Unit evidenced b a promissory
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note and secured by a mortgage or deed of trust on such Housing Unit. -
(20) "Mortgagor" shall mean an individual or individuals who have received a
Mortgage Loan.
(21) "New Housing Unit" shall mean a newly - constructed Housing Unit as to
which the Mortgagor will be the first owner occupant.
(2Z) "Originator" shall mean a Lending Institution which agrees in writing
with the City to originate and /or service Mortgage Loans pursuant to
this Section.
(Z3) "Originator Commitment" shall mean any commitment to an Originator
which may be approved by resolution of the City Council on or prior to
the date of sale of the Bonds pursuant to which the Originator agrees to
originate and sell to the City a specified dollar amount of Mortgage
Loans, subject to the requirements of the Program.
(24) "Pledged Savings Account" shall mean a savings account established by
a mortgagor in connection with a Pledged Savings Account Mortgage
Loan, which savings account and the earnings thereon may be used to
make payments on the Mortgage Loan any time during the initial years
of its amortization period and which will be pledged by the mortgagor
as security for the Pledged Savings Account Mortgage Loan.
(25) "Pledged Savings Account Mortgage Loan" shall mean a Mortgage Loan
originated pursuant to any program approved by the Program Adminis-
trator, for which a portion of the principal and interest payments during
the initial years of such Mortgage Loan will be paid from a Pledged
Savings Account.
(26) "Program" shall mean the housing finance program authorized and to be
implemented by the City pursuant to this Program and the Act.
(27) "Program Administrator" shall mean any Lending Institution which
agrees in writing with the City to monitor Originators' origination and
servicing of the Mortgage Loans which have been sold to the City or to
service all such Mortgage Loans, and to perform such other functions as
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area reed u b such Program Administrator and the City.
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(28) "Qualified Mortgage Guaranty Insurer" means any mortgage quaranty
insurance company approved by FNMA or FH-LMC, which is licensed to
do business in the State of Minnesota and (i) whose policies or insurance
would not adversely affect the rating on the Bonds with the rating
agency which initially rated the Bonds or (ii) is rated on the basis of
claims payment ability at the highest rating then given insureres issuing
mortgage guaranty insurance policies by such agency on the basis of
claims payment ability, so long as such agency rates such insureres on
the basis of claims payment ability.
(29) "VA" shall mean the Veterans Administration; an agency of the United
States of America, or any successor to its functions.
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Subsection Z. Program for Acquisition of Mortgage Loans
The City hereby establishes a Program to acquire, and contract and enter
into advance commitments to acquire, Mortgage Loans owned by Originators at
such purchase prices and upon such other terms and conditions as are set forth
herein, to make and execute contracts with Lending Institutions for the origination
of Mortgage Loans, to make and execute a contract with a Program Administrator
for the monitoring of the origination and servicing of Mortgage Loans (or for the
servicing of such Mortgage Loans) and to pay the reasonable value of services
rendered under such contracts. In establishing and carrying out such Program the
City may exercise, within the corporate limits of the City, any of the powers the
Minnesota Housing Finance Agency is authorized to exercise under the provisions
of Minn. Stat., Chapter 462A.
The City will hire no additional staff for the administration of this Program,
intending to enter into a contract with a Program Administrator who will
administer the performance of the Originators with respect to the limitations
contained in this Section, or who will monitor the originator's servicing of the
Mortgage Loans or who will actually service the Mortgage Loans. The City will
select a trustee for the Program and bondholders which is experienced in trust
management and has a large corporate trust portfolio. The trustee will administer
and maintain the Bonds sold to finance the Program. Insofar as the City has
contracted with underwriters, financial advisors, legal counsel, and will be execut-
ing a contract with a Program Administrator and a trustee, all of whom will 'be
reimbursed from Bond proceeds and continuing Program revenues,. it is not
expected that additional staff will be assigned to the Program nor: is it expected
that any additional staff costs need be paid from the City's budget.
The City Council hereby authorizes and directs the Director of the Housing
and Redevelopment Authori t y of the City to monitor all negotiations between the
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various parties taking part in the Program to ensure that the Program documents
are consistent with the City's Housing Plan and the requirements of the City as set
forth in this Section. Prior to the adoption of the resolution authorizing the sale of
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Bonds to finance the Program, the Director of the Housing and Redevelopment
Authority shall report to the Housing and Redevelopment Authority and the City
Council his findings as to the consistency of the Program documents with the
Housing Plan and the policies of the City contained in this Section.
Subsection 3. Contributions to the Project
(1) To assure that sufficient proceeds will be available to redeem Bonds in
the event that
(i) None of the funds in the Acquisition Fund are ever used to
purchase Mortgage Loans; or
(ii) All of the amounts in the Acquisition Fund are used to purchase
Mortgage Loans under the quickest timing anticipated by the
Originators and the holders of those loans prepay the loans at a
rate equal to 850% of past FHA experience relating to insured
single family (1-4 unit) mortgage loans in a six state area
including Minnesota (so that the average life of the mortgage
loans would be approximately three years)
occurs, participating originators will contribute an amount equal to
percent ( %) of the amount of Mortgage Loans they will
originate, and sellers of new and existing homes will contribute one
percent of the value of such Mortgage Loans to the Acquisition Fund.
(2) To enable homebuyers with incomes of less than percent
( %) of the state median income to qualify for Mortgage Loans, the
City and the will contribute $ to reduce the interest
rate on such Mortgage Loans during the initial years of their amortiza-
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tion period. The Company's contributions will be limited to
providing an interest rate subsidy to first time home buyers who
purchase one of the 72 condominium units in their 120 unit elderly
housing project or to first time home buyers who purchase Housing
Units owned by persons or families moving into the elderly housing
project.
(3) . The City will contribute approximately $ to subsidize the interest
rate on Mortgage Loans acquired or purchased with monies in the
Acquisition Fund for first time home buyers whose incomes are below
$� and who do not qualify for an interest rate subsidy in Subsection
3 (2) above.
(4) The city will create a Tax Increment District that includes the elderly
housing project. The increment generated from the tax increment will
be applied to first, subsidize the rents for the rental units that
will be held for persons or families eligible for a Section 8 rental
subsidy and any remaining Tax Increment will be used to subsidize the
interest rate on market rate mortgages written for persons or families
purchasing condominium units in the elderly housing project.
Subsection 4. Standards and Requirements Relating to Mortgage Loans Pursuant
to the Program
The following standards and requirements shall apply with respect to Mort-
gage Loans acquired by the City pursuant to the Program:
(1) A Mortgage Loan may be made only to finance the purchase of a
Housing Unit existing at the time such Mortgage Loan is made.
Construction loans shall not be made, but an Originator may enter into
an agreement with a Mortgagor to make a Mortgage Loan to him or her
upon the completion of the construction of a New Housing Unit to be
financed by such Mortgage Loan, subject to the "first -come, first-
served " and nondiscrimination basis specified in Subsection hereof, r
and subject to the receipt of a certificate of a City building inspector
stating that the New Housing Unit complies with the building code
requirements of the City (and with the state building code, set forth
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under Minn. Stat., Sec. 16.83 et seq., as they are then in effect);
provided, however, that Mortgage Loans for such construction of a New
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Housing Unit are made within certain time limits (expressed in terms of 4
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a number of months) approved by the Program Administrator from the
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date of an agreement by an Originator to make such a Mortgage Loan. - f
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(2) The Originators shall accept and process applications for Mortgage
Loans for the purchase or construction of Housing Units on a nondis-
criminatory "first -come, first - served" basis, subject to the other provi-
sions of the Program, including any set asides and restrictions imposed
by Subsection 5 hereof, and will not arbitrarily reject an application for
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a Mortgage Loan for a Housing Unit within a specified geographic area
because of the location and /or age of the property, or, in the case of a
proposed Mortgagor, arbitrarily vary the terms of a loan or the
application procedures therefore because of race, color, creed, religion,
national origin, sex, marital status, age or status with regard to public
assistance or disability.
(3) The Mortgagor of each Housing Unit must be fee owner of such Housing
Unit, unless -such Housing Unit is located in a cooperative, and must
occupy such Housing Unit as his principal place of residence.
(4) Ninety percent (90 %) moneys available to make Mortgage Loans shall`
be used to purchase Mortgage Loans made to first time homebuyers or
Mortgagors who have not owned a home for three (3) years prior to the
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Commencement Date. Up to ten percent (10 %) of such moneys may be
used to purchase Mortgage Loans for Housing Units be acquired by
persons or families who are not first time homebuyers providing they
meet all other requirements of this program.
(5) Mobile homes and trailers are not eligible for participation under the
Program, even if they are attached to permanent foundations.
(6) No Housing Unit may be in violation of applicable zoning ordinances or
other applicable land use regulations, including any urban renewal plan
or development district plan.
(7) Each Housing Unit must be located within the corporate limits of the
City.
(8) The purchase price of a Housing Unit may not exceed the lesser of (a)
three times the Adjusted Gross Income Limit set forth in paragraph
(12); (b) four times the Adjusted Gross Income Limit if the Housing Unit-
is located within a "Target Area;" or (c) 110% of the average area
purchase price for residential housing in the Minneapolis, St. Paul
Standard Metropolitan Statistical Area computed as provided under the
Proposed Treasury Regulations or any final regulations promulgated
under Section 103A of the Internal Revenue Code of 1954, as amended
(unless the Housing Unit is within a "Target Area," as defined in Section
103A of the Code, in which case the purchase price may not exceed
120% of the average area purchase price for residential housing).
(9) Each Mortgage Loan shall be made in accordance with origination
agreements to be entered into between the Originators and the City.
(10) The following insurance shall be carried with respect to the Mortgage
Loans: (a) if the original principal amount of the Mortgage Loan
exceeds (or is expected at any time to exceed) 75% of the lesser of the
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purchase price or appraised value of the property subject to the related
Mortgage (treating a Pledged Savings Account as a portion of the down
payment), either W FHA Insurance or (ii) a VA Guaranty or (iii) a
Mortgage Guaranty Insurance Policy; (b) a Mortgage Pool Insurance
Policy; (c) a Standard Hazard Insurance Policy with extended coverage
on the property subject to each Mortgage; (d) a Special Hazard
Insurance Policy; and (e) an Errors and Omissions Insurance Policy and a
Fidelity Bond for each Originator and for the program Administrator,
except that the Program Administrator may choose to participate in a
self insurance program instead.
(11) No Mortgage Loan shall be made to a Mortgagor who has an application '
pending to receive or has received a Mortgage Loan from any other
Originator pursuant to the Program.
(12) The Adjusted Gross Income of a Mortgagor at the time of application
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foraMortgage Loan shall not exceed the greater of:
W 110 percent of the median family income as estimated by
the United States Department of Housing and Urban Devel-
opment for the Minneapolis-St. Paul Standard Metropolitan
Statistical Area; or
(ii) 100 percent of the income limit established by the
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Minnesota Housing Finance Agency for the City.
(13) For the first six (6) months after the Commencement Date, 100% of the
funds provided for the purchase of Mortgage Loans may be made or
committed only to Mortgagors with Adjusted Gross Incomes at the time
of application of less than eighty percent (80 %) of the limit set forth in
Subsection 4 (12).
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(14) To the extent required by law, the assumption of a Mortgage Loan from
a Mortgagor by any other person or persons shall be permitted only if
the person or persons assuming the Mortgage Loan meet the income
limits set forth herein, using the HUD median family income and the.
Agency income limits in effect at the time of the assumption, and such
person or persons are first time home buyers who will occupy the
Housing Unit as their primary residence.
(15) An Originator may retain from a Mortgagor or seller an origination fee
not exceeding one and one -half percent (1%To) of existing and two and
one -half percent (234 %) for new Housing Units of the principal amount
of the Mortgage Loan. A Mortgagor and /or seller of a Housing Unit
may also be charged an additional origination fee, which fee may be
used to defray Program costs.
(16) In the event that on the date of adoption of the resolution by the City
authorizing the sale of the Bonds, any Originator has entered into a
commitment agreement with the Agency under which the Agency has
agreed to purchase mortgage notes and mortgages securing loans for
single family housing, and the Originator has not closed an amount of
eligible mortgages equal to at least 95 percent of the total amount
provided in such commitment agreement, then the City may not enter
into a commitment to purchase loans from such Originator under the
Program unless the Executive Director of the Agency waives such
restriction, as permitted under the Act.
(17) No Mortgage Loan may be made at an interest rate which is less than
the interest rate provided to consumers on mortgage loans being
originated under a single family housing finance program administered
by the Agency at the time of adoption of the resolution.by the City au-
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thorizing the sale of the Bonds unless the Executive Director of the
Agency waives such restriction, as permitted under the Act.
(18) The difference between the interest rate on Mortgage Loans and the
interest rates on the Bonds issued to acquire such Mortgage Loans shall
represent only the costs of insurance premiums, amortized expenses of ?_
issuing the Bonds, the City's ongoing costs for the administration of all
housing programs, fees of originating, servicing, and administering the
Mortgage Loans and trustee and paying agent fees computed so as to
provide that the Bonds shall not be deemed to be "arbitrage bonds" ,—
under the Proposed Regulations or any final regulations promulgated .
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under Section 103A of the Internal Revenue Code of 1954, as amended. )
1 Each Originator shall have in its possession with respect to the property
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financed b a Mortgage Loan and secured thereby an American Land
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Title Association - approved mortgagee's policy of title insurance (or a
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commitment therefor) in an amount at least equal to the outstanding
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principal amount of the Mortgage Loan or an opinion or such other
evidence as shall be approved by the Program Administrator with
respect to a Mortgagor's title to property financing by a Mortgage
Loan.
(20) In the event that the City acquires any existing residences in the City,
with'. the intention of demolishing such residences and making the
cleared sites available for the construction of New Housing Units, the
City will make available. to qualified residents of the residences so
acquired any relocation assistance and benefits required to be provided
pursuant to Minn. Stat., Sec. 117.52 et seq.
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Subsection 5. Set Asides and Restrictions Relating to the Acquisition of Mort
gage Loans
Notwithstanding anything in Subsection 3 to the contrary, the following
restrictions shall apply with respect to Mortgage Loans acquired by the City
pursuant to the Program:
(1) For months percent( %) of the moneys deposited in
the Acquisition Fund shall be used to acquire or to make commitments
to acquire Mortgage Loans on the condominium project sold or con
structed by the Company or to first time home buyers purchasing
existing homes owned by persons or families purchasing units in the
condominium project.
(2) The City will enter into origination agreements with each Originator
proposing to originate Mortgage Loans pursuant to the Program. The
origination agreements shall ecif the dollar amount of the Originator
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Commitment, provided that no more than seventy -five percent (75 0 ,16) of
the moneys deposited in the Acquisition Fund may be used to purchase
Mortgage Loans from any one Originator, unless other eligible Lending
Institutions are not interested in participating or the City sets forth
that a public purpose would be served by confining participation to one
Lending Institution.
(3) Any Lending Institution, as defined in Minn. Stat., Sec. 47.0151, doing
j business in the City and which is an FHA/VA approved or FNMA/
FHLMC approved Lending Institution shall be offered an opportunity to
participate in the Program as an Originator.
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Subsection 6. Evidence of Compliance
The. City may require from each Originator, at or before the time an
agreement to originate Mortgage Loans is entered into by such Originator,
evidence satisfactory to the City of the ability and intention of such Originator to
make Mortgage Loans and sell them to the City under such agreement, and, at the
time the City acquires a Mortgage Loan, evidence satisfactory to the City of
compliance with the standards and requirements for the making of Mortgage Loans
established by the City herein and in any agreement entered into between the City
and the Originator; and in connection therewith, the City or its representatives
may inspect the relevant books and records of such Originator in order, to confirm
such ability, intention and compliance.
Subsection 7. Issuance of Bonds
To finance the program authorized by this Section, the City Council intends
by resolution to authorize, issue and sell its Residential Mortgage Revenue Bonds
by December 31, 1982 in an aggregate principal amount of up to $10,000,000, of
which approximately $8,500,000 will be available to purchase Mortgage Loans.
Principal of and interest on these Bonds shall be payable solely from the proceeds
of the Bonds and the revenues of the Program authorized by this Section. The City
shall enter into an indenture of trust with an institution authorized to accept such
trusts and which is experienced in trust management and has a large corporate
trust portfolio, upon such terms and conditions as the City Council shall determine,
being advised thereon by bond counsel. In issuing Bonds, the City may exercise,
within the corporate limits of the City, any of the powers the Minnesota Housing
Finance Agency is authorized to exercise under the provisions of Minnesota
Statutes, Chapter 462A, without limitation under the provisions of Minnesota
Statutes, Chapter 475.
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Subsection 8. Severability
The provisions of this Section are severable, and if any of its provisions,
sentences, clauses or paragraphs shall be held unconstitutional, contrary to statute,
exceeding the authority of the City or otherwise illegal or inoperative by any court
of competent jurisdiction, the decision of such court shall not affect or impair any
of the remaining provisions.
Subsection 9. Amendment.
The City shall not amend this Section to the detriment of the holders of such
Bonds while Bonds authorized hereby are issued and remain outstanding.
i
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SINGLE FAMILY MORTGAGE REVENUE BOND PROGRAM
Pursuant to Minnesota Statutes Chapter 462C, as amended in 1982,
the City of Brooklyn Center has been authorized develop and administer
programs of making or purchasing mortgage loans to finance the acquisition
of single- family housing located anywhere within its boundaries, for
occupancy primarily by persons of low and moderate income. In creating its
housing finance program, the City Council of the City of Brooklyn Center
has found and determined that the preservation of the quality of life in the
City of Brooklyn Center is dependent upon the maintenance and provision of
adequate, decent, safe and sanitary housing stock; that accomplishing the
provision of such housing stock is a public purpose and will benefit the
citizens of the City of Brooklyn Center; that a need exists within the City
of Brooklyn Center to provide in a timely fashion additional and affordable
housing to persons of low and moderate income residing and expected to
reside in the City of Brooklyn Center; that a need exists for mortgage credit
to be made available for the new construction of additional single - family F
housing; and that many owners are unable to sell housing units and would -be
purchasers of single - family housing units are unable to either afford
mortgage credit at the market rate of interest or obtain mortgage credit
because the mortgage market is severely restricted.
The City Council of the City of Brooklyn Center in establishing this
housing finance program, has considered the information contained in the
City of Brooklyn Center Housing Plan, including particularly (i) the
availability and affordability of other government housing programs; (ii) the
availability and affordability of private market financing for the acquisition
of existing and newly constructed housing units; (iii) an analysis of
population and employment trends and projections of future population
" _1_
#@Rls Lknd future employment needs; (iv) the recent housing trends of the
94Y @f P Center and future housing needs in the City of Brooklyn
Lapd (v) an analysis of how the program will meet the needs of low
der �e income persons and families residing and expected to reside in
�9.....�_- P g xP
tie §ity of Brooklyn Center.
ITJh@ eAty Council has further considered (i) the amount, timing and }
_44@ pf §ends to finance the estimated amounts of mortgage loans to be
u _er the ro ram to fund the a ro riate reserves and to a the
_ fn&d@ ,.�_. P g 9 PP P P Y
Le@§t@ of issuance; (ii) the number and qualifications of lenders eligible to
p &tI@ipate in the program; (iii) the method for monitoring the K
ntatio
}}}}pis�g , _ d ' n by participants to insure that the program is consistent with
Le ff Qus xg Plan of the City of Brooklyn Center and its objectives; (iv) the
d 9f administering, servicing and supervising the program; (v) the cost
}
t@ top City of Brooklyn Center including future administrative expenses;
i
s stsctions on the purchase prices of housing units to be financed
�yi� tip . �..._ . P P g '
Rgg@F t�@ program; (vii) the maximum permitted income of persons or
JgLi}}}ges reeeiving financing under the program; and (viii) certain other
�� §i3QtaA i. Definitions
_ Th@ €ellowing terms when used in this Section shall have the
ug Leanings, respectively:
I) i'Acquisition Fund" shall mean that fund (created pursuant to
gn indenture of trust by and .between the City and the trustee
for the Bonds) into which shall be deposited certain proceeds
- Qf -the Bonds and other funds, if any, and from which the City
*hall purchase Mortgage Loans qualified for purchase under
the. Program.
(2) • "Act's shall mean Minn. Stat., Section 462C.01, et. seq., as
currently in effect and as the same may be from time to time
amended.
(3) "Adjusted Gross Income" shall mean Gross Family Income, less
$750 for each adult in the family, to a maximum of two adults,
I
and less $500 for each other Dependent in the family.
'(4) "Agency" shall mean the Minnesota Housing Finance Agency,
b
or any successor to its functions under the Act.
(5) "Bonds" shall mean the revenue bonds to be. issued by the City
to finance the Program.
(6) "Builder" or "Developer" shall mean any person or business
i for s of Housing entity engaged ed in the construction o ale
Y gg g Units.
i
In the event that any Builder or Developer owns more than
fifty percent (50%) interest in any other business entity E
engaged in the construction for sale of Housing Units, all such
i
entities shall be considered the same Builder or Developer for
k
the purposes of this Program.
(7) "City" shall mean the City of Brooklyn Center, County of r
{
Hennepin, State of Minnesota, or any housing and
redevelopment authority in and for the City of Brooklyn
Center authorized by ordinance of the City Council to
exercise, on its behalf, the powers conferred on the City under
the Act.
(8) "City Council" shall mean the city council of the City.
(9) "Commencement Date" shall mean the date on which the City
has bond proceeds available to purchase Mortgage Loans under
i
'this Program or, for New Housing Units are to be purchased
-3-
with Mortgage Loan Proceeds, the date on which pre -sale
efforts to market New Housing Units has commenced.
(10) "Dependent" shall mean dependent,. as defined in Section 152
of the Internal Revenue Code of 1954, as amended, and the
regulations thereunder.
(11) "FHLMC" shall mean the Federal Home Loan Mortgage
Corporation, or any successor to its functions.
(12) "FHA" shall mean the Federal Housing Administration, an tl
agency of the United States of America within the United
States Department of Housing and Urban Development, or any
successor to its functions.
(13) "FNMA" shall mean the Federal National Mortgage
Association, or any successor to its functions.
(14) "Gross Family Income" shall mean the current annual income
from all sources as determined in accordance with the then
current loan origination requirements of either FHLMC,
FNMA, FHA or VA related to mortgage loans originated under
programs regulated by FHLMC, FNMA, FHA or VA, or private
mortgage insurance, as the case may be, as verified by an
Originator in accordance with such requirements and its
customary underwriting practices, of the Mortgagor, his or her
spouse, and any co -owner of a fee interest in the Housing Unit
to be financed with the proceeds of a Mortgage Loan.
(15) "Housing Plan" shall mean the Housing Plan of the City of
Brooklyn Center, Minnesota, approved on July 21, 1980 and
adopted on September 20, 1982, setting forth the requirements
of the Act.
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(16) • "Housing Unit" shall mean residential real property and .
facilities functionally related and subordinate thereto securing
a Mortgage Loan, which shall be a private detached or
attached one - family dwelling, or a one- family apartment
under condominium ownership (as defined in Minn. Stat.,
Chapter 515A) or cooperative ownership (not including a
mobile home or trailer even if attached to a permanent
.
foundation), including New Housing Units, owned and occupied
by one person or family as a principal residence, containing
complete living facilities and located within the geographical
boundaries of the City.
(17) "Lending Institution" shall mean any bank, trust company,
savings bank, national banking association, savings and loan
association, building and loan association, mortgage bank or
other financial institution or governmental agency which
customarily mortgage makes or services loans on owner -
occupied residential housing in the City, or any holding
company for any of the foregoing, provided, however, such
Lending Institution is approved by . FHA, VA, FNMA or
FHLMC.
�(18) "Mortgage Insurer" shall mean the .FHA, the VA or any.
Qualified Mortgage Guaranty Insurer.
(19) "Mortgage Loan" shall mean an interest bearing loan to a
Mortgagor for the purpose of purchasing a Housing Unit,
evidenced by a promissory note and secured by a mortgage or
deed of trust on such Housing Unit.
-5-
(20) "Mortgagor" shall mean an individual or individuals who have
received a Mortgage Loan.
(21) "New Housing Unit" shall mean a newly constructed Housing
Unit as to which the Mortgagor will be the first owner
Mcupant.
(22) "Originator" shall mean a Lending Institution which agrees in
writing with the City to originate and /or service Mortgage
Loans pursuant to this Section.
"Originator Originator Commitment " shall mean any commitment to an
Originator which may be approved by resolution of the City
Council pursuant to which the Originator agrees to originate
an sell .to the City a specified dollar amount of Mortgage
Loans, subject to the requirements of this Program.
(24) "Fledged Savings Account" shall mean a savings account
90ablished in connection with a Pledged Savings Account
Mortgage Loan, which savings account and the earnings
thereon may be used to make payments on the Mortgage Loan
& , y time during the initial years of its amortization period and
which will be pledged as security for the Pledged Savings
i
Account Mortgage Loan.
($5) "Fledged Savings Account Mortgage Loan" shall mean. a
Mortgage Loan originated pursuant to any program approved
b the Program Administrator, for which a portion' of. the
principal and interest payments during the initial years of such
Mortgage Loan will be paid from a Pledged Savings Account.
(26) "program" shall mean the housing finance program authorized
and to be implemented by the City pursuant to this Program
gnd the Act.
(27) . " Program Administrator" shall mean any Lending Institution
i4hi�h ag rees in writing with the City to monitor Originators'
opigingtign and servicing of the Mortgage Loans which have
bogn sotd tg the City or to service all such Mortgage Loans,
to perfgrM such other functions as are agreed upon by
mob Program Administrator and the City.
�) ffQvaiified Mortgage Guaranty Insurer" means any mortgage
quagnty insurance company approved by FNMA or FHLMC,
_ which is license to do business in the State of Minnesota and.
Wwhose policies or insurance would not adversely affect the
gong on the Bonds with the rating agency which initially
yat @d the _Bon or (ii) is rated on the basis of claims payment
_ bUlty gt the highest rating then given insureres issuing
mortgage guaranty insurance policies by such agency on the
- basis of claims payment ability, so long as such agency rates
- @h insurers on the basis of claims payment ability.
�) fTArr sail Rie an the Veterans Administration, an agency of the
Unitod Mates of America, or any successor to its functions.
sootion �, A f sr Acquisition of Mortgage Loans
The City h @r @by @st a Program to acquire, and. contract and
ant @t intodvgnce gg#n€nitments to acquire, Mortgage Loans owned by
®rigingtors gt gaQh purchase prices and upon such other terms and
conditions g shgU b@ det@rm by the City Council, to make and execute
-o4ntrg@ts with L @nding institutions for the origination of Mortgage Loans, to
-make &nd @# @onto g 000tract with a Program Administrator for the
mon itoring @f th@ origingtion and servicing of Mortgage Loans (or for the
servi @log gf sn @h M@Ftggge Loans) and to pay the reasonable value of
-7-
services rendered under such contracts. In. establishing and carrying out
such Program the City may exercise, within the corporate limits of the
City, any of the powers the Minnesota Housing Finance Agency is authorized
to exercise under the provisions of Minn. Stat., Chapter 462A.
The City will hire no additional staff for the administration of this
Program, intending to enter into a contract ' with a Program Administrator
who will administer the performance of the Originators with respect to the
limitations contained in this Section and who will monitor the originator's r
servicing of the Mortgage Loans or who will actually service the Mortgage
Loans. The City will select a trustee for the Program and bondholders who
is . experienced in trust management and has a large corporate trust
portfolio. The trustee will administer and maintain the Bonds sold to
finance the Program. Insofar as the City has contracted with underwriters,
financial advisors, legal counsel, and will be executing a contract with a
Program Administrator and a trustee, all of whom will be reimbursed from
Bond proceeds and continuing Program revenues, it is not expected that
additional staff will be assigned to the _Program nor is it expected that any
additional staff costs need be paid from the City's budget.
The City Council hereby 'authorizes and directs the Executive
Director of the Housing and Redevelopment Authority of the City -to
monitor all negotiations between the various parties taking part in the .
Program to ensure Xhat the Program documents are consistent with the
City's Housing Plan and the requirements of the City as set forth in this
Section. Prior to the adoption of the resolution authorizing the. We 'of
Bonds to finance the Program, the Executive Director of the Housing and
Redevelopment Authority shall report to the Housing and Redevelopment
Authority and the City Council his findings as to the consistency of the
Program documents with the Housing Plan and the policies of the City
contained in this Section.
Subsection 3. Local Contributions to the Program
(1) To assure that sufficient proceeds will be available to redeem
Ponds and to assure the financial feasibility of the Program,
occurs, the City and participating Originators will contribute
_ an amount equal to three and one half percent (3 1/2 %) of the
Amount of Mortgage Loans that will be originated and sellers
of new and existing homes will contribute one percent of the
value of such Mortgage Loans to the Acquisition Fund. At
least two percent (2.00 %) will be retained by the Program
after origination of the Mortgage Loans.
(2) The City will contribute approximately $ to
reduce the interest rate on Mortgage Loans acquired or
purchased with monies in the Acquisition Fund.
Subsection 4. Standards and Requirements Relating to Mortgage Loans
Pursuant to the Program
The following standards and requirements shall apply with respect to
Mortgage Loans acquired by the City pursuant to the Program:
(1) A Mortgage Loan may be made only to finance the purchase of r
a Housing Unit existing at the time such Mortgage Loan is
made. Construction loans shall not be made, but an Originator
may enter into an agreement with a Mortgagor to make a
Mortgage Loan to him or her upon. the completion of the
construction of a New Housing Unit to be financed by - such
Mortgage Loan, subject to the "first -come, first- served" and
nondiscrimination basis specified in Subsection 4(2), hereof,
and subject to the receipt of a certificate of a City building
inspector stating that the New Housing Unit complies with the
building code requirements of the City (and with the state
building code, set forth under Minna Stat., Sec. 16.83 et seq.,
as they are then in effect); provided, however, that Mortgage
Loans for such construction of a New Housing Unit are made
within certain time limits (expressed in terms of a number of
months) approved by the Program Administrator from the date
•
of an agreement by an Originator to make such a Mortgage
Loan.
(2) The Originators shall accept and process applications for
Mortgage Loans for the purchase or construction of Housing
Units on a nondiscriminatory "first -come, first - served" basis,
' a
subject to the other provisions of the Program, including any
i
set asides and restrictions imposed by Subsection 5 hereof, and
will not arbitrarily reject an application for a Mortgage Loan
for a Housing Unit within a specified geographic area because
of the location and /or age of the property, or, in the case of a
proposed Mortgagor, arbitrarily vary the terms of a loan or the
application procedures therefore because of race, color, creed,
religion, national origin, sex, marital status, age or status with
regard to public assistance or disability.
I
(3) The Mortgagor of each Housing Unit must be fee owner of
such Housing Unit, unless such Housing Unit is located in a
cooperative, and must occupy such Housing Unit as his
principal place of residence.
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(4) • At least ninety percent (90 %) moneys available to make
Mortgage Loans shall be used to purchase Mortgage Loans
made to first time homebuyers or Mortgagors who have not
owned a home for three (3) years prior to the Commencement
Date. Up to ten percent (10 %) of such moneys may be used to
purchase Mortgage Loans for Housing Units to be acquired by
persons or families who are not first time homebuyers,
_ provided they meet all other requirements of this program.
(5) Mobile homes and trailers are not eligible for participation
under the Program, even if they are attached to permanent
foundations.
(6) No Housing Unit may be in violation of applicable zoning
ordinances or other applicable land use regulations, including
any urban renewal plan or development district plan.
(7) Each Housing Unit must be located within the corporate limits
o the City.
(8) The purchase price of a Housing Unit may not exceed the
lesser of (a) three times the Adjusted Gross Income Limit set
forth in Subsection 4(12); (b) four times the Adjusted Gross
Income Limit if the Housing Unit is located within a "Target
Area" as defined in Minnesota Statutes Chapter 462C; or (c)-
110% . of the average. area purchase price for' residential
housing in the Minneapolis, St. Paul Standard Metropolitan
Statistical. Area computed as provided under the Proposed
Treasury Regulations or any final regulations promulgated
under Section 103A of the Internal Revenue Code of 1954, as
amended (unless the Housing Unit is within a "Target Area," as
-11-
defined in Section 103A of the Code, in which case the .
purchase price may not exceed 120% of the average area
purchase price for residential housing).
(9) Each Mortgage Loan shall be made in accordance with
•
origination agreements to be entered into between the
Originators and the City.
(10) Each Mortgage Loans must, at a minimum, be insured or
® guaranteed if the original principal amount of the Mortgage
Loan exceeds (or is expected at any time to exceed) 75% of
the lesser of the purchase price or appraised value of the
property subject to the related Mortgage (treating a Pledged
Savings Account as a portion of the down payment) or if the
Mortgage is a Pledged Savings Account Mortgage Loan, with,
either (i) FHA Insurance or (ii) a VA Guaranty or (iii) a
Mortgage Guaranty Insurance Policy.
(11) No Mortgage Loan shall be made to a Mortgagor who has an
application pending to receive or has received a Mortgage
Loan from any other Originator pursuant to the Program.
(12) The Adjusted Gross Income of a Mortgagor at the time of
application for a Mortgage Loan shall not exceed the greater
.' of:
(i) 110 percent of the median family income as estimated
by the United States .Department of Housing and Urban
Development for the Minneapolis -St. Paul Standard
Metropolitan Statistical Area; or
(ii) 100 percent of the income limit established by the
Minnesota Housing Finance Agency for the City.
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(13). For the first six (6) months after the Commencement Date,
100% of the funds provided for the purchase of Mortgage
Loans may be made or committed only to Mortgagors with
Adjusted Gross Incomes at the time of application of less than
eighty percent (80 %) of the limit set forth in Subsection 4 (12).
(14) To the extent required by law; the assumption of a Mortgage
Loan from a Mortgagor by any other person or persons shall be
permitted only if the Program meets the requirements of
Subsection 4(4) and the purchase price of the Housing Unit
meets the requirement of Subsection 4(8) and the new —�
Mortgagors will occupy the Housing Unit as their primary
residence. ,
(15) An Originator may be allowed to retain from a 'Mortgagor or
seller an origination fee not exceeding one and one -half
percent (1 1/2 %) for existing and two and one -half percent (2
1/2%) for new Housing Units of the principal amount of the
Mortgage Loan. A Mortgagor, Developer and /or seller of a
Housing Unit may also be charged an additional origination
fee, which fee may be used to defray Program costs.
(16) In the event that on the date of adoption of the resolution. by
'the City authorizing the sale of the Bonds, any Originator has
entered into a commitment agreement with the Agency under
. which the Agency has agreed to purchase mortgage notes and
mortgages securing loans for single family housing, and the
Originator has not closed an amount of eligible mortgages
equal to at least 95 percent of the total amount provided in
such commitment agreement, then the City may not enter into
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a commitment to purchase loans from such Originator under
the Program unless the Executive Director of the Agency
waives such restriction, as permitted under the Act.
(17) No Mortgage Loan may be made at an interest rate which is t
less than the interest rate provided to consumers on mortgage
loans being originated under a single family housing finance
program administered by the Agency at the time of adoption g
_ of the resolution by the City authorizing the sale of the Bonds r
unless the Executive Director of the Agency waives such
t
restriction, as permitted under the Act.
i
(18) The difference between the interest rate on Mortgage Loans
I
and the interest rates on the Bonds issued to acquire such
Mortgage Loans shall represent only the costs of insurance
1
premiums, amortized expenses of issuing the Bonds, the City's
1
ongoing costs for the administration of ' all housing programs,
1
fees of originating, servicing, and administering the Mortgage
Loans and trustee and paying agent fees computed so as to
provide that the Bonds shall not be deemed to be "arbitrage
bonds" under the Proposed Regulations or any final regulations
promulgated under Section 103A of the Internal Revenue Code
of 1954, as amended. f
(19) Each Originator shall have in its possession with respect to the
property financed by a Mortgage Loan and secured .thereby an
American Land Title Association - approved - mortgagee's policy
of title insurance (or a commitment therefor) in an amount at
least equal to the outstanding principal amount of the
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Mortgage Loan or an opinion or such other evidence as. shall be
' approved by the Program Administrator with respect to a
Mortgagor's title to property financing by a Mortgage Loan.
(20) In the event that the City acquires any existing residences in
the City, with the intention of demolishing such residences and
making the cleared sites available for the construction of -New
Housing Units, the City will make available to qualified
residents of the residences so acquired any relocation
assistance and benefits required to be provided pursuant to
Minn. Stat., Sec. 117.52 et seq.
Subsection 5. Set Asides - and Restrictions Relating to the Acquisition of
Mortgage Loans
Notwithstanding anything in Subsection 3 to the contrary, the
following restrictions shall .apply with respect to Mortgage Loans acquired
by the City pursuant to the Program:
(1) The City may permit commitments to be made between
Originators and Developers to acquire Mortgage Loans on New
Housing Units constructed by particular Developers or, with
respect to Developers of senior citizen condominium projects,
to acquire or make commitments to acquire Mortgage Loans .
for first time homebuyers purchasing existing Housing -Units
owned by the senior citizens purchasing units in the senior
citizen condominium projects.. Developers may be charged a
commitment fee for such set asides, which fee may be used to
defray Program costs. No more than 75 percent (75%) of the
moneys deposited in the Acquisition Fund may be used to
-15-
purchase Mortgage Loans for New Housing Units built or sold
by any one Developer.
(Z) The City will enter into origination agreements with each
Originator proposing to originate Mortgage Loans pursuant to
the program. The origination agreements shall specify the
dollar amount of the Originator Commitment, provided that no
more than seventy -five percent (75 %) of the moneys deposited
z in the Acquisition Fund may be used to purchase Mortgage
Loans from any one Originator, unless other eligible Lending.
Institutions are not interested in participating or the City sets
forth that a public purpose would be served by confining
participation to one Lending Institution. {
t
(3) Any Lending Institution, as defined in Minn. Stat.,
See. 47.0151, doing business in the City and which is an
FHA/VA approved or FNMA /FHLMC approved Lending
Institution shall be offered an opportunity to participate in the j
x
Program as an Originator.
Subsection 6. Evidence of Compliance
The City may require from each Originator, at or before the time an
agreement to originate Mortgage Loans is entered into by such Originator,
evidence satisfactory to the City of the ability and intention of such
Originator to make Mortgage Loans and sell them to the City under such
agreement, and, at the time the City acquires a Mortgage Loan, evidence
satisfactory to the City of compliance with the standards and requirements
tdr the making of Mortgage Loans established by the City herein and in any
agreement entered into between the City and the Originator; and in
-16-
s
connection therewith, the City or its representatives may inspect the
relevant books and records of such Originator in order to confirm such
ability, intention and compliance. F
Subsection 7. Issuance of Bonds
To finance the program authorized by this Section, the City Council
intends by resolution to authorize, issue and sell its Residential Mortgage
Revenue Bonds by December 31, 1982 in an aggregate principal amount of
up to $8,250,000, of which approximately $7,000,000 will be available to
purchase Mortgage Loans. Principal of and interest on these Bonds shall be
payable solely from the proceeds of the Bonds and the revenues of the
Program authorized by this Section. The City shall enter into an indenture
of trust with an institution authorized to accept such trusts and which is
experienced in trust management and has a large corporate trust portfolio,
upon such terms and conditions as the, City Council shall determine, being
advised thereon by bond counsel. In issuing Bonds, the City may exercise,
within the corporate limits of the City, any and all of the powers the
Minnesota Housing Finance Agency is authorized to exercise under the
f Minnesota Statutes Chapter 462A, with limitation under
provisions o , P •
the provisions of Minnesota Statutes, Chapter 475.
Subsection 8. Severability
The provisions of this Section are severable, and if any of its
provisions, sentences, clauses or paragraphs shall be held unconstitutional,
contrary to statute, exceeding the authority of the City or otherwise ,illegal
or inoperative by any court of competent jurisdiction, the decision of such
court shall not affect or impair any of the remaining provisions.
-17-
Subsection 9, Amendment
The City shall not amend this Section to the detriment of the holders
of such Bonds while Bonds authorized hereby, are issued. and remain
outstanding.
A
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SUMMARY
CITY OF BROOKLYN CENTER, MINNESOTA
SINGLE FAMILY MORTGAGE REVENUE BONDS
1. Size of Issue: $8,250,000
2. Amount of Mortgage Loans to be
made available by Program: $7,000,000
3. Types of Mortgage Loans:
A. FHA, VA and Conventional.
B. 100% Private Mortgage Insurance may be required where the
loan to value ratio exceeds 75%.
C. Pledged Savings Account Loans will be permitted (FLIP or
ACTION programs), and 3 -2 -1 buy -downs of interest rate
will be permitted.
D. Graduated Equity Mortgage loans may also be permitted.
4. Use of Proceeds:
A. To acquire existing or newly constructed houses.
B. Developer commitments may be made available for persons
purchasing new houses built by a particular developer
or to a developer who will make loan funds available
to persons selling existing houses and wishing to move
to that developer's new development.
.C. No mobile homes may be financed under the Program.
5. Loan Eligibility Requirements:
A. At least 90% of the loans must be made to first time
homebuyers. The rule for first time homebuyers is that
the purchaser must not have owned a house for the last
three years.
B. For the first six months, all of the money is set aside
for persons whose adjusted gross incomes do not exceed
$25,168.
C. After six months, adjusted gross incomes may not exceed
$31,460; house purchase prices may not exceed $75,600
for existing houses and $94,380 for new houses.
SUMMARY
CITY OF BROOKLYN CENTER, MINNESOTA
SINGLE FAMILY MORTGAGE REVENUE BONDS
6. Summary of Adjusted Gross Incomes and Maximum Purchase Prices:
Maximum Gross
Maximum "Adjusted Income Maximum Purchase
Gross Income" (Family of Four) Price
First Six Months $25,168 $22,668 $75,600 Existing
General $31,460 $33,960 $94,380 New
Gross income is reduced by $750 for each adult (maximum of two
adults) and $500 for each dependent to arrive at adjusted gross
income. For a family of four (two adults and two children), the
reduction from gross income would be $2,500.
7. Loan Origination Fees:
A. From buyer - to application fee.
B. From seller - to program participation fee.
MINUTES OF THE PROCEEDINGS OF THE PLANNING COMMISSION
OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN
AND THE STATE OF MINNESOTA
REGULAR SESSION
AUGUST 12, 1982
CITY HALL
CALL TO ORDER
The Planning Commission met in regular session and was called to
order by Chairman George Lucht at 7:36 p.m.
ROLL CALL
Chairman George Lucht, Commissioners Carl Sandstrom, Mary Simmons,
Nancy Manson and Donald Versteeg. Also present were Director of
Planning and Inspection Ronald Warren, Assistant City Engineer
James Grube and Planning Assistant Gary Shallcross. The Secretary
stated that Commissioners Malecki and Ainas called to say that they
would be unable to attend the evening's meeting and asked to be
ou d e n g g
excused.
APPROVAL OF MINUTES - July 15, 1982
Motion by Coirsnissioner Sandstrom seconded by Commissioner Versteeg
to approve the minutes of the July 15, 1982 Planning Commission
meeting as submitted. Voting in favor: Chairman Lucht, Commissioners
Sandstrom, Simmons, Manson and Versteeg. Voting against: none.
The motion passed.
APPLICATION NO. 82030 (Marie Reyes)
Following the Chairman's explanation, the Secretary introduced the
first item of business, a request for variance from Section 35 -400
of the Zoning Ordinance to allow a two car garage to be set back
25' 6" from the front property line at 5700 Camden Avenue North,
rather than the normally required 35 The Secretary reviewed the
contents of the staff report (see Planning Commission Information
Sheet for Application No. 82030 attached). He added that he felt
Application No,. 78064 regarding a carport erected within the front
setback, superseded the previous case in 1968 which allowed a
garage to be built closer than 35' from the property line.
Commissioner Simmons asked whether the proposed recreation room
in the space currently part of the existing garage was too close
to the north side property line to meet ordinance standards. The
Secretary responded in the affirmative. He explained that living
space must normally be set back 10 or 5' if there are no windows
or doors along the wall or in the space that it encroaches into
the normal 10' setback area. He explained that the existing garage
is 3' 3" and therefore, living space would be brought closer than
the minimum of 5' from the north side property line. He added
that garages are allowed to be 3' from the side property line.
In response to a question from Commissioner Sandstrom regarding
the grade behind the existing garage, the Secretary observed that
there was some dropoff, but that the existing garage could be
expanded both toward Camden Avenue North and to the rear toward
the back yard. He explained that such an attached garage would
require a foundation anyway and that, therefore, a footing would
have to go down into the ground beneath the existing grade. He
also stated that tandem garages have been built in the City. He
stated that staff.had considered the option of building a detached
8 -12 -82 -1-
garage behind the house, but admitted that because of the dropoff
in the back yard and the existence of some trees, it would be
difficult to build a detached garage in the back yard.
Commissioner Versteeg asked whether houses and garages are set
back 35' on Camden Avenue North. Commissioner Simmons answered
that she believed they are set back the normal 35' on this block.
The Secretary stated that the existence of other houses on the
block less than 35' from the front property line would be a poor
reason for granting a variance, in his opinion. He explained that
the City Council formally used an average formula to grant setback
variances in the front yard. He stated that this practice eroded
.the ordinance and was abandoned many years ago.
PUBLIC HEARING
Chairman Lucht then opened the meeting for a public hearing. Mr.
Harvey Stenquist, an architect representing the applicant, explained
to the Planning Commission that the existing garage -is only 11 wide
on the outside dimensions and that a 40' long garage of this width
would be extremely difficult to work with. He added that there
were apple trees in the back yard which would make it a hardship
f the owner to
put a detached ar e in back. He stated that he
a
or p garage
considered the situation unique because there are very few homes in
the City which have access taken away from them on two sides. Mr.
Stenquist showed the Planning Commissioners pictures of the elevat-
ions of the house and stated that the applicant will make the siding
on the house uniform rather than the patchwork construction that
exists now. He stated that the narrowness of the existing garage
would make a tandem garage difficult to work with. He pointed out
that a long circuitous drive around the back of the house to get
out of the back of a tandem garage would probably be necessary.
Otherwise, the residents would always have to be jockeying their
cars to get in and out. Commissioner Simmons stated that she did
not feel that was a unique situation. She added that there are
other garages that are in the same situation and that granting a
variance in this case would have implications for those cases as*
well.
Mr. Stenquist stated that the existing garage could be used for
_.storage space and could even be part of the new garage. He stated
that the possibility of converting the space to a rec room had been
raised by staff and was, therefore, added as a possibility on the
plans, but that it did not have to be converted to a rec room.
Commissioner Simmons asked which street the house fronted on. The
Secretary stated that the front of the lot was considered to be
Camden and that a 35' setback was required from the street. He
added that because the parcel was a lot of record prior to 1997,
the owner was entitled to a 15' side corner setback on the south
side of the house. Commissioner Simmons pointed out that most
people only have one street access, not two or three. She stated
she did not see that losing a couple of accesses was a particular
hardship or made the property unique. She pointed out that the
proposal would allow for two cars in the garage and two additional
cars to be parked in the proposed turn-around area. She added that
she had seen trucks parked at that location before. Mr. Stenquist
observed that the applicant does have a business and occasionally
parks commercial vehicles on his property. The Secretary pointed
out that the applicant has been tagged for too many commercial
vehicles on residential property in the past.
86 -12 -82 -2-
Mr. Robert Brantner, of 5712 Camden Avenue North, next addressed
the Commission. He stated that he was all for the proposal and that
other neighbors on the street are in favor of it as well. He stated
that the house looks tacky in its present configuration, that the
house had been there when he was a young man himself many years ago
and that it should, therefore, be grandfathered and allowed to be
approved. The Chairman and the Secretary both responded that the
property could be upgraded within setback restrictions. Commissioner
Simmons stated that she agreed with the staff position and felt that
jockeying of cars is an inconvenience only, that other people must
put up with this if they have only one car driveways.
Mr. Reyes addressed the Commission and stated that he had trouble
with his existing garage. He stated that it is only used for storage
and it would not help him get his cars off his driveway. Following
further brief discussions, Chairman Lucht asked whether anyone else
present wished to apeak to the application. Hearing none, he called
for a motion to close the public hearing.
CLOSE PUBLIC HEARING
Motion by Commissioner Sandstrom, seconded by Commissioner Simmons,
to close the public hearing. The motion passed unanimously.
Commissioner Sandstrom asked whether there was any other violation
besides allowing a closer setback. The Secretary answered that
there was no other violation if the existing garage were not con-
verted to living space and the turn - around area allowed for at
least a 15' greenstrip in front. Commissioner Sandstrom stated
that garages are needed in Minnesota weather and he stated that a
tandem garage presents particular difficulties. Chairman Lucht
stated that he considered the tandem garage to be an inconvenience,
but not a hardship as far as the ordinance is concerned. Commis-
sioner Sandstrom stated that he felt the situation was peculiar with
the access changed from West River Road to Camden and that the im-
provements ought to be allowed to improve the aesthetics of the
dwelling and improve the neighborhood. Commissioner Simmons stated
that she agreed with the idea of improving the aesthetics and con -
ceded that the plan was rather.an ambitious one. She added, however,
that the existing garage could be expanded to the south and the
kitchen to the west to allow for a wider garage and still allow
expansion of the kitchen.
Commissioner Manson stated that she was not in favor of the variance.
She understood the parking problems, she said, but felt that there
are alternatives in designing an expansion of the garage that should
be pursued before a variance is granted. Commissioner Versteeg
stated that he favored keeping the alignment uniform along Camden
Avenue and, therefore, the variance should be denied.
Chairman Lucht stated his understanding was that the 1978 variance
case gave a clear policy signal from the City Council regarding the
importance of the front setback. He stated that it may be incon-
venient to look at the alternatives, but he felt that the setback
was more important than apple trees or other inconveniences.
Mr. Stenquist pointed out that the kitchen floor is 48" above the
garage floor and that 48" of concrete foundation would have to be
removed in order to expand the garage southward. This, he said,
was more than a slight inconvenience.
r
8 -12 -82 -3-
A CTION RECOMMENDING DENIAL OF APPLICATION NO. 82030 (Marie Reyes)
Motion by Commissioner Simmons seconded by Commissione.i. Mme. ^so" to
recommend denial of Application No. 82030 on the grounds that the
Standards for a Variance are not met. Voting in favor: Chairman
Lucht, Commissioners Simmons and Versteeg. Voting against: Com -
missioner Sandstrom. The motion passed.
APPLICATION NO 82033 (Advance C arter Company)
The Secretary then introduced the next ite of business, a request
for special use permit approval to expand the existing recreation
center at 1280 Brookdale Shopping Center, The Piccadilly Circus.
The Secretary reviewed the contents of the staff report (see Plann-
ing Commission Information Sheet for Application No. 82033 attached).
In reviewing the conditions of approval the Secretary explained that
Section 23 -2115 applies to the operation of amusement centers.
Commissioner Simmons noted that one of the doors leading out of the
new tenant space would lead directly to the outside. The Secretary
explained that the door was an exit -only door and would not be used
for access to the recreation center. Commissioner Simmons asked
how late the recreation center would be open. The Secretary re-
sponded that it would be the same as the general Brookdale Mall
hours, that the only establishment within Brookdale that is open
after hours, to his knowledge, is the Rocky Rococo's Restaurant.
Mr. Dan Heilicher, representing Advance Carter, stated that the
door to the outside is an emergency exit which was requested by the
Fire Department. He reiterated that the hours of the recreation
center would be the same as those for the mall. Commissioner
Versteeg asked whether there would be employees on the premises
after hours. Mr. Heilicher answered that employees would be on the
premises occasionally during evenings and weekends, after hours or
before hours. He added that food and drink would be prohibited in
the recreation center.
PUBLIC HEARING
Chairman Luc ht then opened the meeting for a public hearing and asked
whether anyone present wished to speak on the application. Hearing
— none, he called for a motion to close the public hearing.
CLOSE PUBLIC HEARING
Motion by Commissioner Manson seconded by Commissioner Sandstrom to
close the public hearing. The motion passed unanimously.
ACTION RECOMMENDING APPROVAL OF APPLICATION NO. 82033 (Advance
Carter Company)
Motion by commissioner Sandstrom seconded by Comnussloner Versteeg
to recommend approval of Application No. 82033, subject to the
following conditions:
1. The special use permit shall be issued to the
applicant as operator of the facility and is
nontransferable.
2. The special use is subject to all applicable
codes, ordinances and regulations, including
Section 23 -2115 and violation thereof shall be
grounds for revocation.
8 -12 -82 -4-
3. House rules and hours of local curfew regulations
shall be clearly posted in the establishment and
rigorously enforced.
Voting in favor: Chairman Lucht, Commissioners Sandstrom, Simmons,
Manson and Versteeg. Voting against: none. The motion passed
unanimously.
APPLICATION NOS. 82020, 82031 and 82032 (Hussman Investment Company)
The Secretary ti introduced the next three items of business con-
currently, a request to rezone from Rl to R3 two parcels of land on
the south side in the 800 block of 70th Avenue North, and a request
for site and building plait and preliminary plat approval for an 8
unit townhouse project on the same property. The Secretary reviewed
the staff report beginning with the information sheet for Appli-
cation No. 82020 (attached). The Secretary also reviewed the reasons
for rezoning contained in the draft resolution (also attached). The
Secretary also reviewed the information sheet regarding the site plan
and plat (Application Nos. 82031 and 82032, attached). The Secretary
stated that he recommended fencing along the whole east property line
and in the portion of the south property line not yet screened in
the landscape plan. He added that such screening cannot come within
10' of public right -of -way. During his review of the recommended
conditions of approval, the Secretary explained that the landscape
PP Y ex P
plans have been certified by Mr. Jim Merila, a registered engineer.
He stated that landscape plans, under the strict provisions of the
Zoning Ordinance, must be prepared by a registered architect, not
an engineer. He added, however, that landscape plans have been
submitted by engineers in the past. He stated that the Planning
Commission should decide whether it is appropriate to accept the
plans as presently certified.
In response to questions from Commissioner Simmons regarding visitor
parking, the Secretary explained that two stalls have been moved to
serve the northerly five units of the project and in order to save
three larger cottonwood trees.
Regarding the certification of plans, the Secretary stated that the
ordinance requires site and building plans, including landscape
plans to be prepared by a registered architect. However, he went
on, the City has accepted plans in the past from engineers. He
added that the City has also accepted plans which were not certified
on the condition that they be certified prior to the issuance of
building permits. He explained that the requirement for architectural
certification was intended to save the City the expense of hiring an
architect to review plans. Commissioner Manson asked whether land-
scape architects have submitted landscape plans in the past. The
Secretary responded in the affirmative. Commissioner Manson asked
if other plans have been accepted from other design professionals.
before. The Secretary again responded in the affirmative. Commis-
sioner Sandstrom asked what the City prefers. - The Secretary answered
that he preferred certification by a registered professional. Chair-
man Lucht stated that he felt it was simpler to require certification
by an architect in accordance with the letter of the ordinance.
Commissioner Versteeg asked whether the City's experience and that
of local businesses with landscape architects has been satisfactory.
The Secretary responded in the affirmative. In answer to a question
from Commissioner Simmons, the Secretary explained that drawings
.8 -12 -82 -5-
for two family dwellings do not need to be certified either under
the City Ordinance or State Building Code. He stated that the
Building Official can still require certification if he has questions
about the design.
Mr. Jim Merila then addressed the Commission on behalf of the
applicant. Regarding the screening plan, he asked that the Commis-
sion accept both fencing and vegetation rather than strictly fencing
along the east.and south property lines of the project. Commissioner
Simmons asked Mr. Merila why the applicant wished to use vegetation
as well'as fencing. Mr. Merila answered that he preferred the
aesthetic advantages of the landscape treatment. Chairman Lucht
asked what materials the applicant would use in providing vegetative
screening along the east property line. Mr. Merila responded that
they would use the same materials shown in the landscaping along
the south property line, namely Russian Olives, Sumac and Spruce.
Commissioner Simmons suggested that both fencing and landscaping
could be installed along the east property line and the land-
scaping would soften the appearance of the.stockade fence.. Mr.
Merila acknowledged that this could be done, but requested that
the applicant be allowed to alternate the fence and the shrubs to
provide screening along the east and south property lines.
Chairman
Lucht stated that such a proposal was acceptable to him in that
landscaping has been allowed in the past and he added that he did
-not care for stockade fence.
During further discussion on the screening issue, the Planning
Assistant asked what plantings would be used to provide screening
so that the Planning Commission could make a judgment that the
proposed treatment is acceptable. Mr. Merila stated that the same
nodules that were indicated along the south property line would
be installed alon g property the east ro erty
line as well. Chairman Lucht
asked that the landscape plan be revised prior to consideratio n by
the City Council. There was also a brief discussion regarding the
certification of -the plans by a registered architect. Mr. Merila
stated that he would accept the condition listed in the information
sheet.
Mr. Russell Fierst then briefly addressed the Commission regarding
the building plans and floor layout for the proposed townhouses.
Mr. - Fierst explained that the bearing walls would all be on the
outside walls of the units and that interior floor plans could
be built to suit any prospective buyer. Regarding the landscape
plan, Mr. Fierst stated that a Mr. Van Gable had designed the land-
scape plan and that, although Mr. Van Gable was not a registered
problem having plans certified.
f there would be no g P
architect himself, ro P
about the rice
d deck shown on the P
Ii Asked about the second plans and abo P
range for the units, Mr. Fierst stated that the deck off the bedroom
is an optional feature and the price range of the units would
probably be in the high $50,000's to mid $60,000's, depending on
costs and landscaping in
construction c p g costs.
PUBLIC HEARING
Chairman Lucht then opened the public hearing for the plat, Appli-
cation No. 82032. No one present spoke on the application.
CLOSE PUBLIC HEARING
Sandstrom seconded b
Motion by Commissioner San Y Commissioner Manson to
close the public hearing. The motion passed unanimously.
8 -12 -82 -6-
ACTION RECOMMENDING APPROVAL OF APPLICATION NO. 82031
(Hussman Investment Company)
Motion by Commissioner Manson seconded by Comm�. e r Sandstrom
to recommend approval of Application No. 82031, 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 the issuance of permits.
3. A site performance agreement and supporting financial
guarantee (in an 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 shall be
appropriately screened from view.
5. Plan approval is exclusive of all signery which
is subject to Chapter 34 of the City Ordinances.
6. B612 curb and gutter shall be provided around all
common parking and driving areas.
71 The landscape plans shall be certified by a
s; registered architect prior to Council consideration.
r
8. Plan approval acknowledges some vegetative screening
along with opaque fencing along the south a nd
easterly boundary of the site. p shall b-
-'_ : r! - , } /'y YG f cv } LTC3'��ISi37�C �• f "— �a Y • ee i n' p Y'l cL to
9. Building permits for the project will not be issued
until the plat has been given final approval by the
City Council and filed with the County.
Voting in favor: Chairman Lucht, Commissioners Sandstrom, Simmons,
The motion passed
_ Voting a P
Manson and Versteeg. g ainst: none. g
unanimously.
ACTION RECOMMENDING APPROVAL OF APPLICATION NO. 82
(Hussman Investment Company) _
Motion by Commissioner Versteeg seconded by commiss Manson to
recommend approval of Application No. 82032, 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. Homeowners Association documents shall be subject to
8 -12 -82 -7-
review and approval by the City Attorney prior to
final plat approval.
Voting in favor: Chairman Lucht, Commissioners Sandstrom, Simmons,
Manson and Versteeg. Voting against: none. The motion passed.
RESOLUTION NO. 82 -3
Following a suggestion that any reference to the school district be
stricken from Point No. 2 supporting the rezoning, member Simmons
introduced the following resolution and moved its adoption:
RESOLUTION REGARDING RECOMMENDED DISPOSITION OF APPLICATION NO.
82020 SUBMITTED BY HUSSMAN INVESTMENT COMPANY
The motion for the adoption of the foregoing resolution was duly
seconded by member Sandstrom, and upon vote being taken thereon -the
following voted in favor thereof: Chairman Lucht,'C,ommissioner.s
Sandstrom, Simmons, Manson and Versteeg. Voting against: none. The
motion passed.
RECESS
The Planning Commission recessed at 10:01 p.m. and resumed at
10:32 p.m.
DISCUSSION ITEM (City Maintenance Garage)
Following thr recess, the Secretary introduced a discussion of
the possibility of having outside storage at the City Maintenance
Garage at 6844 Shingle Creek Parkway. The Secretary explained
that the City Maintenance Garage is located in the I -1 Zoning
District which does not permit outside storage. He explained that
outside storage is allowed in the I -1 and C2 Zoning Districts. He
suggested that possibly an ordinance amendment to allow outside
storage under certain conditions in the I -1 zone should be drafted.
The Secretary referred to the large outside storage yard which
Northern States Power Company Y
n has between 68th Avenue North and
P
the freeway and also referred to the above- ground fuel tanks that
are allowed in the I -1 District provided they are screened from
public view and approved by the City Council.
The Secretary explained that the City wants to move its "bone yard"
to the City Garage in order to get it out of the residential neigh-
borhood where it is presently located at Dupont and 69th Avenue North.
The Secretary explained that the City acquired some R4 property be-
tween West River Road and Camden Avenue North through tax forfeiture
and has tentative plans to use that site for a water treatment plant.
He stated that the outside storage could be pursued at the R4
property between West River Road and Camden or at the City Maint-
enance Garage. He stated that there was a need for outside storage
in the I -1 zone. The question, he pointed out, was how to treat
such storage under the ordinance. He mentioned that the salt storage
building at the City Garage had been approved since 1978. The
Secretary stated that he favored taking the storage of gravel, sand
and other materials out of the R1 zone. He stated that the storage
could be transferred to the R4 property, the City Garage, or an I -2
zone site if the City acquired such property.
The'Assistant City Engineer then reviewed with the Planning Commis -
sion in more detail the specific construction proposed. He stated
8 -12 -82 -8-
r
that the intent of the move was to put the street and public utilities
crews in one place. He stated that the materials would be placed
in a cold storage area within an expanded salt storage building and
behind a masonry wall which would extend 8' above the 5' high berm
along the greenstrip north of 69th Avenue North. Within the storage
area would be wood plank walls 4' to 6' in height. He explained
that there would be a protective shield around the walls extending
up to 4' to prevent gouging and damaging the main wall with loading
equipment.
The Assistant City Engineer showed the Planning Commission some
pictures,and slides of similar types of storage bays in other
cities. Commissioner Simmons stated that the primary goal was
not to have visible outside storage. The Secretary reviewed some
instances of outside loading docks which have been oriented away
from public right -of -way so as to minimize their visibility. He
asked the Planning Commission whether they were opposed to allowing
storage in the I -1 zone or whether they felt it could be allowed
under certain conditions. Commissioner Manson stated that there
had been some concern over outside storage with the Classic Electric
Car application in 1981. She stated that it would have been diffi-
cult to deny Classic Car the right to store cars and other materials
outside if the City had approved outside storage at the City Garage
prior to that application. The Secretary acknowledged that this
was a possibility, but went on to suggest that perhaps public uses
could be distinguished from other uses in determining what kinds
of activity can be permitted in the I -1 Zoning District.
Commissioner Simmons suggested that any ordinance allowing outside
storage narrow down the type of storage so as to minimize the
possibility of other businesses devoting much space to outside
storage. The Secretary stated that by being the first to conduct
outside storage in the I -1 Zoning District, the City could set
the standard for required screening. The Secretary stated that
any outside storage should be totally screened from public view
and should constitute a use on the site accessory to a principal
use housed within a building. Commissioner Sandstrom stated that
it is generally acknowledged that cities, representing the general
public, have certain rights that other uses are not entitled to.
Commissioner Simmons expressed some concern with any noise that
might be associated with outside storage such as from the machinery
used to deliver and pick up materials stored outside.
It was the consensus of the Commission that outside storage in
certain limited situations might be acceptable in the I -1 Zoning
District and directed the staff to prepare draft ordinance language
for their review.
ADJOURNMENT
Following further brief discussion of the matter, there was a
motion by Commissioner Sandstrom seconded by Commissioner Manson
to adjourn the meeting of the Planning Commission. The motion
passed unanimously. The Planning Commission adjourned at 11 :33 p.m.
Chairman
8 -12 -82 -9-
Planning Commission Information Sheet
Application No. 82030
Applicant: Marie Reyes
Location: 5700 Camden Avenue North
Request: Variance
The applicant requests a variance from Section 35 -400 of the Zoning Ordinance to allow
a two -car garage to be located 25' 6" from the front property line, instead of the 35'
required. The applicant also proposes to convert an existing single -car garage to possible
living space set back only 3' 3" from the north side interior property line. The
setback deficiencies would result from the addition of a two -car attached garage to
the west side of the existing structure, while converting the existing single -car
garage on the north side of the house to either a storage or recreation room. (A
recreation room is considered dwelling space which must normally be set back 10 from
side interior property lines, or 5' on one side of the house if there are no doors
or windows). The lot in question is zoned R1 and is bounded by I -94 on the east, by
57th Avenue North on the south, by Camden Avenue North on the and by a single -
family residence on the north.
There exists, along the south side of the property adjacent to 57th Avenue North, a
highway easement preventing access to the property from 57th Avenue North. Therefore,
access must be gained off Camden Avenue North. A garage could perhaps be added on
the south side of the house, but would require a substantial variance from the side -
corner setback requirement and would very probably encroach into the highway easement.
Relative to the proposed garage location, staff do not recommend this alternative.
Another option is to expand the existing single -car garage by extending it eastward
to the front setback line and westward to the area behind the house, resulting in
a "tandem" garage. This appears to staff to be a feasible alternative.
The applicant has submitted a letter (attached) in which she argues that:
-The orientation of the access has changed from old U. S. 169 to Camden
Avenue North.
-The house was placed on the site long ago, probably prior to adoption
of a Zoning Ordinance.
-The new garage would help re- orient the house to Camden Avenue North
and would constitute an aesthetic improvement to the property and to
the neighborhood.
Locating the garage elsewhere would involve long, circuitous drives
and removal of trees.
-The circumstances are unique, involving an older site which has
changed in orientation over the years.
Mrs. Reyes also points out that neighboring property owners do not object to the -
requested variance.
In reviewing applications for variance from the literal provisions of the City's
Zoning Ordinance, the Planning Commission shall, according to Section 35 -240,
determine whether the following standards are met:
(a) Because of the particular physical surroundings, shape, or
topographical conditions of the specific parcels of land
involved, a particular hardship to the owner would result,
as distinguished from a mere inconvenience, if the strict
letter of the regulations were to be carried out.
8 -12 -82 -1-
i
Application No. 82030 continued
(b) The conditions upon which the application for a variance is based
are unique to the parcel of land for which the variance is sought,
and are not common, generally, to other property within the same
zoning classification.
(c) The alleged hardship is related to the requirements of this
ordinance and has.not been created by any persons presently or
-formerly having an interest in the parcel of land.
(d) The granting.of the variance will not be detrimental to the public
welfare or injurious to other land or improvements in.the neigh -
borhood in which the parcel of land is located.
Staff do not feel that the standards for a variance are necessarily met in this case.
The option of building a tandem two -car garage within setback limitation is feasible
and constitutes no more than an inconvenience in fulfilling the applicant's desires
for more garage space. The applicant's situation is not unique, moreover. There
are numerous homes within Brooklyn Center which have single car garages set back
5' or less from the side lot line and 35' to 40' from the front lot line. If all
these are entitled to a similar variance, the front yard setback requirement would
become almost meaningless.
There have been two previous Planning Commission Applications (No. 68053, approved;
78064; denied) which posed questions quite similar to those raised by this appli-
cation. The first (68053) pertained to the property at 5831 June Avenue North
involving an attached garage to be set 30' from the front property line, with the
house set back 35'. In this case, the variance was granted because other garages
along the same block were also set back less than 35'. There was also a steep
grade behind the proposed garage location. In the present case, there is a slight
downward grade change behind the existing house, but it is staff's judgment that
the steepness of the grade is not such as to create a hardship if the applicant
were limited to building a tandem garage.
Application No. 78064 was a request to allow a carport, erected without a permit,
to continue in the front yard setback area. The applicant contended it would be
impossible to construct a detached garage elsewhere on the premises because of the
pl.acoment of existing trees. The variance was denied on the grounds that it did
not meet the Standards for a Variance with respect to hardship and uniqueness. In
the present case, the option of a detached garage behind the house was considered
by staff, but can probably be rejected on the grounds that there is a substantial
drop -off in the rear yard.
There is also the question whether a variance must be granted to allow construction
of a garage, or for a two -car garage as opposed to a one -car garage. Garages are
not required under City ordinances. Application No. 68053 involved a property with
no garage and with circumstances that would have made meeting the setback require-
ment difficult, though not impossible. Since there is presently a garage on the
property in question, it cannot be the case that meeting the setback will eliminate
the possibility of having a garage.
In brief, staff feel that the Standards for a Variance are not met on the following
grounds:
(a) The circumstances (a one car garage set back 3' from the north
side lot line) are not unique at all. Many, many homes have
similar circumstances.
1
842 -82 -2-
1
Application No. 82030 continued
(b) Meeting the setback by building a tandem garage, as opposed to
a standard side -by -side two -car garage, does not constitute a
hardship, but merely an inconvenience.
(c) Although the property has been affected by changes to the right-
of -way on the south and east, these changes were not caused by
the ordinance; nor do they prohibit compliance with the ordinance.
(d) The proposed variance probably would not be detrimental to sur-
rounding property, except in its eroding effect on general set-
back standards.
It should also be noted that the proposed layout submitted shows a rather large
blacktop turnaround area in the front yard, which would allow less than the normal
15' greenstrip required for parking areas. It should be made clear that any action
on the variance request does not constitute acceptance of this proposed turnaround.
We have not addressed in this report the separate question of whether dwelling space
should be allowed less than 5' from the side interior property line. We do not
recommend such a variance. In fact, the likelihood that such a further variar-a- _......
would become effective if the proposed plan were accepted is another reason for
denial of the application.
A public hearing has been scheduled and notices have been sent.
8 -12 -82 -3-
Planning Commission Information Sheet
Application No. 82033
Applicant: Advance - Carter Company
Location: 1280 Brookdale Center
Request: Special Use Permit
The applicant requests amended special use permit approval for an expanded recreation
center at Brookdale. The existing recreation center, Piccadilly Circus, was approved
under Application No. 76012. Brookdale Shopping Center is zoned C2 and recreation
centers are special uses within that zoning district provided they do not abut R1,
R2, or R3 zoned property at a property line or a street line. Further, mechanical
amusement devices may not be located in commercial establishments within 150' of any
residentially zoned property. There are no residential abutment problems with this
application.
The expansion of the Piccadilly Circus will be into the tenant space formerly occupied
by the Hennepin County Service Center which has been moved to its new location at the
library at 6125 Shingle Creek Parkway. The existing space at Brookdale has approxi-
mately 31 machines in a 1,300 sq. ft. area. The expansion will add 18 machines with
the 1,430 sq. ft. area, along with a larger storage and repair room. A tentative
layout sketch is attached for the Commission's review.
The original special use permit for Piccadilly Circus was granted in 1976 subject to
certain conditions including the following:
"3. House rules and hours of local curfew regulations shall be clearly
posted in the establishment and rigorously enforced.
4. The special use permit shall be subject to review by the Planning
Commission one year from the date of issuance.
5. Provision shall be made for bicycle parking racks located in a
manner approved by the Department of Planning and Inspection."
A review of the special use was made in 1977 and a memo from the then Director of
Planning and Inspection is attached for the Planning Commission's consideration. As
will be noted, the additional bicycle racks were considered unnecessary at that time.
The Chief of Police has recently informed us that, based on the record of the past
six years, he has no objection to the expansion of the operation.
Based on the foregoing, we see no difficulty in extending the special use permit
for Piccadilly Circus and approval is, therefore, recommended subject to the following
conditions:
1. The special use permit shall be issued to the applicant as operator
of the facility and is nontransferable.
2. The special use is subject to all applicable codes, ordinances and
regulations, including Section 23 -2115 and violation thereof shall
be grounds for revocation.
3. House rules and hours of local curfew regulations shall be clearly
posted in the establishment and rigorously enforced.
8 -12 -82
Planning Commission Information Sheet
Application No. 82020
Applicant: Hussman Investment Company
Location: 811 and 821 - 70th Avenue North
Request: Rezoning
This application was initially reviewed by the Planning Commission on April 29,.1982
and referred to the Northeast Neighborhood Advisory Group for review and comment. The
neighborhood group met on June 3rd without a quorum and again on June 16th and made
a favorable recommendation of the rezoning to R3. The application was then returned
to the Planning Commission on July 1, 1982, at which time the Commission gave the
applicant a favorable indication regarding the rezoning and asked that a site plan
and plat be prepared and submitted prior to taking action on the rezoning. Those
applications have now been submitted and are recommended for approval along with
the rezoning.
The Planning Commission is also advised that another letter from Mr. Paul Dan Rosso
Evanson of 80 - 69th Avenue North
Melba Evan 0
(representing ) has been submitted to the
Commission and is attached for your review. The letter basically discusses the role
of the Comprehensive Plan in deciding land use changes.
As was indicated in the staff report of July 1, 1982, staff feel the rezoning need
not be construed as spot zoning and can be justified within the guidelines for
evaluating rezonings contained in Section 35 -209 of the Zoning Ordinance. A draft
resolution approving the rezoning is attached for the Planning Commission's
consideration.
The public hearing for this application was closed at the July 1, 1982 meeting.
Nevertheless, an informational notice has been sent to all owners of property within
350 feet of the land in question.
8 -12 -82
r
Member introduced the following resolution and moved
its adoption:
PLANNING COMMISSION
RESOLUTION NO. 82 -3
RESOLUTION REGARDING RECOMMENDED DISPOSITION OF APPLICATION
NO. 82020 SUBMITTED BY HUSSMAN INVESTMENT COMPANY
WHEREAS, Application No. 82020 submitted by Hussman Investment Company
proposes rezoning from R1 (Single- family Residential) to R3 (Townhouse) of property
in the 800 block on the south side of 70th Avenue North; and
WHEREAS, the Commission held a duly called public hearing on April 29,
1982 when testimony regarding the request was taken; and
WHEREAS, the item was referred to the Northeast Neighborhood Advisory
Group which, in minutes of a meeting on June 16, 1982 recommended the rezoning,
subject to submittal of a plat to subdivide the property for owner - occupied
townhouses and of a site and building plan; and
WHEREAS, the Commission further considered the matter on July 1, 1982
and on August 12, 1982; and
WHEREAS, an appropriate preliminary plat to subdivide the property for
owner- occupied townhouses and site and building plan have been accepted by the
Commission:
NOW, THEREFORE, BE IT RESOLVED by the Brooklyn Center Planning Advisory
Commission to recommend to the City Council that Application No. 82020 submitted by
Hussman Investment Company be approved in consideration of the following:
1. The R3 zoning classification is an appropriate land use
classification for the location in question in that it is
consistent and compatible with all surrounding land uses.
2. Development of the property for townhouses is in the interest
of the City, and the surrounding land uses, as well as the
pl by adding 8 dwelling units "to the Northeast
Neighborhood.
'3. Development of the property for townhouses is more con -
sistent with a traffic level of up to 7,000 cars per day
anticipated on 69th /70th Avenues North than single- family
residences in that internal driveways allow for better
visibility for residents to enter the public street.
4. The proposed townhouse use of the land is not considered to
be inconsistent with the Comprehensive Plan goal that the
Northeast Neighborhood be predominantly single - family
detached residential in character.
5. The proposed townhouse use is consistent with the recom-
mendations of the Comprehensive Plan, specifically with the
Land Use Revisions Map which calls for mid - density residential
development south of 70th Avenue North, east of the City
Maintenance Annex and west of the Columbus Village Apartments.
J
RESOLUTION NO. 82 -3
6. The property in question will bear fully the ordinance develop -
ment restrictions for the proposed zoning district, whereas the
R1 zoning classification presented development problems which
would have lead to a less efficient use of land.
August 12, 1982
Date Chairman
ATTE T
Secretary
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.
Planning Commission Information Sheet
Application Nos. 82031, 82032
Applicant: Hussman Investment Company
Location: 811 and 821 - 70th Avenue North
Request: Site and Building Plan, Preliminary Plat
The applicant requests site and building plan and preliminary plat approval for an
eight (8) unit townhouse project on the .91 acre parcel of land presently addressed
811 and 821 - 70th Avenue North. The property in question has been the subject of
a rezoning request (Application No. 82020)which has received tentative, though not
final approval by the Planning Commission at its July 1, 1982 meeting.
The site plan calls for three L- shaped doubles and one double with entries at either
end (see copy of plan attached). Access to the site is from two points along the
east side of 69/70th Avenues North. A total of 36 parking stalls are provided,
including four guest parking stalls. This far exceeds the 16 spaces required by
ordinance. The site plan assumes partial use of a tuck -under garage credit of 500
sq. ft. per tuck -under garage stall. Since the site is less than an acre, the
normal density would allow only 7 units. However, utilizing an optional credit
for tuck -under garage stalls, the site could accommodate up to 9 units. The eight
(8) units proposed falls within that limit.
The landscape plan calls for four (4) Summit Ash (2" - 22" dia.) and one Sugar Maple
within the boulevard area. In addition, the plan calls for three (3) Red Maples,
one (1) Sugar Maple, one (1) Silver Maple, and three (3) Shademaster Locusts within
the property. Also, two large existing trees and several smaller Elms are to remain
on the site. Finally, the plan calls for smaller trees and shrubs and foundation
plantings around the units. City ordinance requires at least two 6" diameter trees
for a project of this size. In the past, Elm trees have not been credited toward
this requirement. Since one of the larger existing trees have not been identified
as to specie, we cannot determine that it is not an Elm and, therefore, the landscape
plan cannot be considered complete. Also, the landscape plan has not been certified
by a registered architect as required by ordinance. The plan calls for minimum 15'
buffer strips along the southerly and easterly boundaries of the project, in accord -
ance with ordinance requirements. The plan utilizes existing vegetation and, in the
gaps,a 6' high stockade type fence to meet the screening requirement. No fencing
is provided, however, along the north 90' of the east property line. It is recom-
mended that fencing be added to the plan in this area prior to Council consideration.
The drainage and grading plan provides B612 curb and gutter around all common parking
and driving areas. A catch basin is proposed at the north end of the guest parking
area serving the northerly five townhouse unit's. A depressed curb will be installed
at the southern tip of the guest parking serving the southerly three units. The
drainage from the southerly portion of the site will drain out of this depressed
curb into a drainage swayle running along the south property line to the storm
drainage system in 69th /70th Avenue North. Plans for 69th /70th are tentatively for
a 32' wide roadway which may be expanded later. No concrete driveway aprons will.
be installed until a final roadway width is established.
The building plans submitted are for one and two - bedroom units with about 1,000 sq.
ft. of dwelling space and two -car garages. The exteriors are treated with horizontal
lap board siding. Each has an outside stairway leading up to a split- entry. Each
unit also has a deck off the living room.
The proposed plat has eight (8) townhouse lots on four (4) blocks and one common
area. No easements are indicated. -The proposed legal description will be the
"Evergreen Estates."
8 -1.2 -82 -1-
Application Nos. 82031, 82032
a
Altogether, the plans and the plat appear to be in order and approval is recommended,
subject to the following conditions:
implication No. 82031
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 the issuance of permits.
3. A site performance agreement and supporting,financial'guarantee (in'�
an 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. Plan approval is exclusive of all signery which is subject to
Chapter 34 of the City Ordinances.
6. B612 curb and gutter shall be provided around all common parking
and driving areas.
7. The landscape plans shall be certified by a registered architect
prior to Council consideration.
8. The landscape plan shall be modified to indicate 6' high opaque
fencing along the north 90' of the east property line in accord-
ance with City ordinance requirements.
9. Plan approval acknowledges vegetative screening along the southerl
and easterly boundaries of the site in lieu of an opaque fence or
wall.
10. Building permits for the project will not be issued until the plat
has been given final approval by the City Council and filed with
the County.
A pplication No. 82032
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. Homeowners Association documents shall be subject to review and
approval by the City Attorney prior to final plat approval.
8 -12 -82 -2-
Member introduced the following resolution and moved
its adoption:
RESOLUTION NO.
RESOLUTION REGARDING DISPOSITION OF APPLICATION NO. 82020
SUBMITTED BY HUSSMAN INVESTMENT COMPANY
WHEREAS, Application No. 82020 suhmi.tted by Hussman Investment Company
proposes rezoning from R1 (Single - fancily Residential) to R3 (Townhouse) of property
in the 800 block on the south side of 70th Avenue North; and
WHEREAS, the Planning Commission held a duly called public hearing on
April 29, 1982 when testimony regarding the request was taken; and
WHEREAS, the item was referred to the Northeast Neighborhood Advisory
Coup which, in minutes of a meeting on June 16, 1982 reccmmended the rezoning,
subject to submittal of a plat to subdivide the property for owner- occupied
towmhouses and of a site and building plan; and
W IFAS, the Planning Commission further considered the matter on July
1, 1982 and on August 12, 1982 and have recommended the rezoning through Planning
Cmrdssion Resolution No. 82 -3; and
WHEREAS, an appropriate preliminary plat to subdivide the property for
owner- occupied townhouses and site and building plan have been accepted by the
Planning Commission; and
4MREAS, the City Council considered rezoning Application No. 82020 and
the companion applications for preliminary plat approval (No. 82032) and site and
building plan approval (No. 82031) at their August 23, 1982 and August 30, 1982
meetings:
k
NOW, =REFORE, BE IT RESOLVED by the City Council of the'City of
Brooklyn Center that rezoning Application No. 82020 submitted by Hussman Investment
Company be approved in consideration of the following:
1. The R3 zoning classification is an appropriate land use
classification for the location in question in that it is
consistent and compatible with all surrounding land uses.
2e Development of the property for townhouses is in the
interest of the City, and the surrounding land uses, as
well as the property owner, by adding 8 dwelling units
to the Northeast Neighborhood, f
3. Development of the property for townhouses is more con-
sistent with a traffic level of up to 7,000 cars per day r
anticipated on 69thf70th Avenues North than single- family
residences in that internal driveways allow for better
visibility for residents to enter the public street.
4. The proposed townhouse use of the land is not considered to
be inconsistent with the Cmnprehensive Plan goal that the
Northeast Neighborhood be predominantly single - family
detached residential in character.
a
S. The proposed townhouse use is consistent with the recom-
mendations of the Comprehensive Plan, specifically with the
Land Use Revisions Map which calls for mid-density residential
development south of 70th Avenue North, east of the City
Maintenance Annex and west of the Columbus Village Apartments.
RESOLUTION NO.
6. The property in question will bear fully the ordinance develop -
ment restrictions for the proposed zoning district, whereas the
ti Rl zoning classification presented development problems which
would have lead to a less efficient use of land.
Date Mayor
ATMST:
Clerk
The motion for the adoption of the foregoing resolution was duly seconded
by marber 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.