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HomeMy WebLinkAbout2011 08-08 CCP Regular Session AGENDA CITY COUNCIL STUDY SESSION August 8, 2011 6:00 p.m. City Council Chambers A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 1. City Council Discussion of Agenda Items and Questions 2. Miscellaneous 3. Discussion of Work Session Agenda Items as Time Permits 4. Adjourn • CITY COUNCIL MEETING City of Brooklyn Center August 8, 2011 AGENDA **AMENDED 08/05/11** 1. Informal Open Forum with City Council—6:45 p.m. —provides an opportunity for the public to address the Council on items which are not on the agenda. Open Forum will be limited to 15 minutes, it is not televised, and it may not be used to make personal attacks,' to air personality grievances, to make political endorsements, or for political campaign purposes. Council Members will not enter into a dialogue with citizens. Questions from the Council will be for clarification only. Open Forum will not be used as a time for problem solving or reacting to the comments made but, rather, for hearing the citizen for informational purposes only. 2. Invocation 7 p.m. —Dave Johnson,Administrator, St. Alphonsus Parish 3. Call to Order Regular Business Meeting —The City Council requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. • 4. Roll Call 5. Pledge of Allegiance 6. Approval of Agenda and Consent Agenda -The following items are considered to be routine by the City Council and will be enacted by one motion. There will be no separate discussion of these items unless a Councilmember so requests, in which event the item will be removed from the consent agenda and considered at the end of Council Consideration Items . a. Approval of Minutes 1. July 25, 2011 —Study Session 2. July 25,2011 —Regular Session 3. July 25,2011 —Work Session b. Licenses C. Resolution Calling for a Public Hearing on Proposed Special Assessments for Delinquent Nuisance Abatement Costs, Delinquent Administrative Fines/Citations, and Delinquent Administrative Vacant Building Registration d. Resolution Approving Subrecipient Agreement for Hennepin County Neighborhood Stabilization Program 3 (HUD NSP 3 and MHFA NSP 3) CITY COUNCIL AGENDA -2- August 8,2011 **AMENDED 08/05/11** • e. Resolution Appointing Election Judges to Serve in Special Elections f. Application and Permit for Temporary On-Sale Liquor License Submitted by City of Lakes Nordic Ski Foundation, for an Event to be Held at Surly Brewing Company, 4811 Dusharme Drive, on September 10, 2011 7. Presentations/Proclamations/Recognitions/Donations a. Proclamation Declaring August 20, 2011,to be Brookdale Chevrolet Day Requested Council Action: Motion to adopt proclamation. 8. Public Hearings a. Resolution Approving Modification of Tax Increment Financing Plan for Tax Increment Financing District No. 2 and Modification of the Redevelopment Plan for Housing Development and Redevelopment Project No. 1 —This item was published in the official newspaper on July 13, 2011; and is offered this evening for Public Hearing. Requested Council Action: —Motion to open Public Hearing. —Motion to take public input. —Motion to close Public Hearing. • —Motion to adopt resolution. 9. Planning Commission Items None. 10. Council Consideration Items —None. 11. Council Report 12. Adjournment Agenda Items Tabled or Continued An Ordinance Amending Chapter 4 of the Brooklyn Center City Charter, Sections 4.01 and 4.02 —This item was first read on April 12, 2010; was published in the official newspaper on April 22, 2010; and the Public Hearing was continued at the May 10 2010, meetin g-until such time as the Charter Commission makes its recommendation to the City Council. • EDA MEETING City of Brooklyn Center August 8, 2011 AGENDA 1. Call to Order -The EDA requests that attendees turn off cell phones and pagers during the meeting. A copy of the full City Council packet, including EDA (Economic Development Authority), is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. 2. Roll Call 3. Approval of Agenda and Consent Agenda —The following items are considered to be routine by the Economic Development Authority (EDA) and will be enacted by one motion. There will be no separate discussion of these items unless a Commissioner so requests, in which event the item will be removed from the consent agenda and considered at the end of Commission Consideration Items. a. Approval of Minutes 1. July 25, 2011 Regular Session 4. Commission Consideration Items a. Resolution Approving Modification of Tax Increment Financing Plan for Tax Increment Financing District No. 2 and Modification of the Redevelopment Plan for Housing Development and Redevelopment Project No. 1 Requested Council Action: — Motion to approve resolution. b. Resolution Authorizing the Acquisition of Six Undeveloped Parcels Within the Preliminary Plat of Eastbrook Estates 2nd Addition to Preserve Future Residential Housing Development Opportunities Requested Council Action: — Motion to approve resolution. 5. Adjournment AGENDA CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY WORK SESSION August 8, 2011 Immediately Following Regular City Council and EDA Meetings Which Start at 7:00 P.M. Council Chambers City Hall A copy of the full City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. ACTIVE DISCUSSION ITEMS 1. Public Art Discussion 2. Presidential Invite — Councilmember Roche PENDING LIST FOR FUTURE WORK SESSIONS Later /Ongoing 1. Progress Reports on Achievement of Strategic Goals 2. School District Discussions/BC Strategic Plan Report 3. Sister City Update 4. Active Living Program 5. Annual Department Year End Reports 6. Graduated Sanitary Utility Rate Study — August 22 7. Garbage Hauler Organized Collection Update October 8. Youth Participation Request — October 9. Neighborhood Designations — December 10. Highway 252 Update — 2012 City Council Agenda Item No. 6a • • MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL • OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA STUDY SESSION JULY 25, 2011 CITY HALL — COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council met in Study Session called to order by Mayor Tim Willson at 6:00 p.m. ROLL CALL Mayor Tim Willson and Councilmembers Carol Kleven, Kay Lasman, Tim Roche (arrived at 6:05 p.m.), and Dan Ryan. Also present were City Manager Curt Boganey, Director of Fiscal and Support Services Dan Jordet, Public Works Director /City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, City Attorney Charlie LeFevere, and Carla Wirth, Timesaver Off Site Secretarial, Inc. CITY COUNCIL DISCUSSION OF AGENDA ITEMS AND QUESTIONS City Manager Curt Boganey advised of the revision to the resolution for Item 8a to include a • more succinct legal description. ption. Councilmember Roche arrived at 6:05 p.m. Councilmember Ryan requested discussion of EDA Item 4a, Resolution Approving Development Agreement with Real Estate Recycling, LLC (Environmental Testing Loan), relating specifically to Article 5, Section 5.23, Indemnification, and asked whether the extensive language will protect the City from potential liability. Mr. Boganey confirmed that is the purpose. MISCELLANEOUS Councilmember Kleven reported that Brooklyn Park will be conducting a study of garbage hauling that will include public input meetings. She suggested the City follow up with Brooklyn , Park to learn how their residents respond. Councilmember Kleven reported on the closing of Perkins and that a group of kidney specialists are moving into the American National University building. Councilmember Kleven asked for an update on the tap room law and potential conflict with the law governing cities with municipal liquor. Mr. Boganey explained that issue has not yet been resolved but staff has discussed the matter with the Surly Brewing Co. owner, Omar Ansari, and his advisors have agreed there is a conflict between the two statutes. Mr. Boganey explained the 07/25/11 -1- DRAFT Ci e current Brewery site only if the build a could issue a to room liquor license at the ry y Y City p q • restaurant. He stated that due to the conflict, which may have been an oversight, an amendment may be considered during the next legislative session. It was noted that past events at Surly Brewing Co. were accomplished through a temporary license with a not - for - profit organization. The Council discussed the intent of the legislation and municipalities that are able to issue a tap room license. Councilmember Lasman stated she received a second mailing from the National League of Cities, Leadership Training Institute, notifying her of the Silver Level of Achievement in Leadership Award and asking if she would attend the luncheon to claim the award. She stated she researched flights but found it may cost $4,000 or more to attend this one -day luncheon so she has decided to not attend due to the City's g s ti ht budget. Councilmember Lasman stated she appreciates the support of the Council to attend and accept the award and asked if the Mayor would present the award at a future meeting. Mayor Willson stated he would be honored to make the presentation. Councilmember Roche thanked Councilmember Lasman for this consideration. Councilmember Roche reported the Financial Commission has an opening due to unexcused absenteeism. Mayor Willson asked staff to advertise this vacancy. Councilmember Lasman indicated she will be out of town to attend a school or job related conference and unable to attend National Night Out events. Councilmember Roche reported that his house has been sold so his last meeting will be • August 8, 2011. Mayor Willson requested an update on the Shingle Creek Crossing groundbreaking ceremony. Director of Business and Development Gary Eitel stated it is his understanding the groundbreaking will be at 5:30 .m. on either September 13 or 15, de g g ending on the Mayor's P p p schedule. Mayor Willson suggested September 13, 2011, since a neighborhood meeting is scheduled for September 15. DISCUSSION OF WORK SESSION AGENDA ITEMS AS TIME PERMITS PROPOSAL BY WINGS FINANCIAL FOR THE TERMINATION OF THE CEMENT POND/FOUNTAIN EASEMENT AND DEDICATION OF A NEW TRAIL EASEMENT Mr. Eitel summarized the history of the cement storm water and aesthetic pond and fountain at 6160 Summit Drive and changes in ownership. He then provided a presentation on the proposal by Wings Financial to remove the fountain and cement pond and dedicate the trail easement to ion of trail/ pedestrian walkway round the pond. Wings Financial would allow the continuation the tra P Y p g pay for the demolition and restoration, estimate d at $ 20 000 and the EDA would be responsible for all costs associated with the reconstruction of the trail, i.e., surveying, legal costs, trail construction, and aesthetic improvement such as landscaping, as well as on -going maintenance. 07/25/11 -2- DRAFT It was noted that Wings Financial would have no current or future financial responsibilities for • lighting of the trail or placement of a fountain in the pond. Mr. Eitel asked whether: the Council has a sufficient understanding of the 2000 ReliaStar- Brookdale Cement Pond/Fountain easement Agreement; is willing to accept the responsibility of reconstructing/maintaining the trail around the pond; and, interested in the placement of a fountain within the pond and/or pedestrian lighting of the trail. He noted this trail is an "orphan" and a maintenance agreement for it does not exist. With regard to the fountain, he advised it may cost $45,000 to repair the existing fountain; however, it would add an amenity. The Council discussed the cost to ro erl air and maintain the fountain g� due to its age, and P P Y repair whether the funds may be better spent on a new fountain. ADJOURN STUDY SESSION TO INFORMAL OPEN FORUM WITH CITY COUNCIL Councilmember Lasman moved and Councilmember Ryan seconded to close the Study Session at 6:45 p.m. Motion passed unanimously. RECONVENE STUDY SESSION Councilmember Lasman moved and Councilmember Roche seconded to reconvene the Study • Session at 6:46 p.m. Motion passed unanimously. PROPOSAL BY WINGS FINANCIAL FOR THE TERMINATION OF THE CEMENT POND /FOUNTAIN EASEMENT AND DEDICATION OF A NEW TRAIL EASEMENT - CONTINUED Mr. Eitel described how the pond could become an amenity to this site, especially for those staying at Embassy Suites. He explained that a fountain would aerate the pond but additional treatment may be required to remove algae bloom and create a pristine pond. Mr. Eitel explained the agreement would remove the cement fountain and pond at the cost of Wings Financial and the question for the Council is whether to establish the trail around the pond, pedestrian scaled lighting on the east side of the pond, and a fountain. Councilmember Roche stated his support to include a fountain and incorporate the pond into the Earle Brown Heritage Center, noting it would create synergy and could become the "center" for Brooklyn Center and assist in the rebranding effort. He agreed a fountain would also present a good impression to those staying at the Embassy Suites. Councilmember Roche stated he has a sufficient understanding of the costs, supports including a fountain, and to reconstruct and maintain the trail around the pond, and add lighting. 07/25/11 -3- DRAFT Councilmember Kleven concurred and stated she also supports installing a fountain. • Mayor Willson supported installation of a trail and changing the lighting so it can be used for taking a stroll in the evening and placement of a fountain in the pond to create ambiance and an amenity for Embassy Suites, Earle Brown Heritage Center, and the other side. Councilmember Ryan concurred, noting it would be up to the Council whether trail improvements are completed. He stated he would like to see what can be done with pond maintenance to eliminate algae. Mr. Boganey advised that the decision relating to termination of the agreement with Wings Financial is the first and most critical decision to be made. He recapped that the Council has uniformly agreed to terminate that agreement and allow Wings Financial, at its expense, to remove the cement pool and fountain. He noted that everything else related to the trail, lighting, and fountain are at the EDA's discretion. The majority consensus of the Council was to direct staff to prepare a resolution to terminate the Cement Pond Easement and provide additional information on costs to build the trail, lighting, installing a fountain, maintenance, and operating those amenities. It was noted the Council will also need to weigh whether it should be the obligation of the EDA/City for on -going maintenance. ADJOURNMENT Councilmember Kleven moved and Councilmember Ran seconded to close the Stud Session at • Y Y 7:00 p.m. Motion passed unanimously. • 07/25/11 -4- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA REGULAR SESSION JULY 25, 2011 CITY HALL — COUNCIL CHAMBERS 1. INFORMAL OPEN FORUM WITH CITY COUNCIL ' CALL TO ORDER INFORMAL OPEN FORUM The Brooklyn Center City Council met in Informal Open Forum called to order by Mayor Tim Willson at 6:45 p.m. I ROLL CALL Mayor Tim Willson and Councilmembers Carol Kleven, Kay Lasman, Tim Roche, and Dan Ryan. Also present were City Manager Curt Boganey, Director of Fiscal and Support Services Dan Jordet, Public Works Director /City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, Director of Community Activities, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. Mayor Tim Willson opened the meeting for the purpose of Informal Open Forum. No one wished to address the City Council. Councilmember Ryan moved and Councilmember Kleven seconded to close the Informal Open Forum at 6:46 p.m. Motion passed unanimously. 2. INVOCATION As the Invocation, Mayor Willson asked for a moment of silence for the victims and their families involved in the bombing in Norway. 3. CALL TO ORDER REGULAR BUSINESS MEETING The Brooklyn Center City Council met in Regular Session called to order by Mayor Tim Willson at 7 :00 p.m. 4. ROLL CALL Mayor Tim Willson and Councilmembers Carol Kleven, Kay Lasman, Tim Roche, and Dan • Ryan. Also present were City Manager Curt Boganey, Director of Fiscal and Support Services 07/11/11 -1- DRAFT Dan Jordet, Public Works Director /City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, City Attorney Charlie LeFevere, and Carla Wirth, TimeSaver Off Site • Secretarial, Inc. 5. PLEDGE OF ALLEGIANCE The Pledge of Allegiance was recited. 6. APPROVAL OF AGENDA AND CONSENT AGENDA Councilmember Roche moved and Councilmember Ryan seconded to approve the Agenda and Consent Agenda, and the following consent items were approved: 6a. APPROVAL OF MINUTES 1. July 11, 2011— Study Session 2. July 11, 2011— Regular Session 3. July 11, 2011— Executive Session 4. July 11, 2011— Work Session 6b. LICENSES LIQUOR — ON -SALE WINE INTOXICATING The Global Kitchen, Inc. 6000 Shingle Creek Parkway MECHANICAL • Arctic Mechanical 5255 Edinburg Way, Big Lake Concept Plumbing, Heating &Cooling 8739 County Road 39, Annandale Perfection Heating & A/C 1770 Gervais Avenue, Maplewood Titan Heating & Cooling 7610 Jasmine Avenue S., Cottage Grove RENTAL INITIAL (TYPE II— two -year license) 6600 Dupont Avenue N. Thomas Le 5125 Howe Lane Jamison Kohout — Real Assets 6807 Humboldt Avenue N. C203 Raymond Charest 5728 Logan Avenue N. Konstantin Ginzburg 5349 Northport Drive Paul Ferfon 6725 Willow Lane N. Angelo Santas RENEWAL (TYPE II — two-year license) 5701 Brant Avenue N. Lin Shuang LLC 6114 Dupont Avenue N. Douglas Wahl 5559 Lyndale Avenue N. Dragon Property Management • 07/11/11 -2- DRAFT RENEWAL (TYPE I — three-year license) • 1107 57 Avenue N. Bob Robson 5601 Lyndale Avenue N. Riverwalk II Dragon Property Management 3912 58 Avenue N. Lin Shuang LLC 2824 67 Lane N. Molly Collins 6200 Brooklyn Boulevard Tuan Pham 5439 Colfax Avenue N. Roger Kadlec 5307 Howe Lane Jose Antonio Villavano 5636 Irving Avenue N. Bruce Goldberg 5421 Lyndale Avenue N. Dragon Property Management 3112 Quarles Road Cha Lee 6413 Regent Avenue N. Tim Xiong SIGNHANGER Lawrence Sign 945 Pierce Butler Route, St. Paul Scenic Sign Corporation 828 S. 5 th Street, Sauk Rapids 6c. RESOLUTION NO. 2011 -100 AND CONSENT ORDER IMPOSING CIVIL PENALTY FOR SCOREBOARD PIZZA, INC. AT 6816 HUMBOLDT AVENUE NORTH 6d. RESOLUTION NO. 2011 -101 DECLARING A PUBLIC NUISANCE AND ORDERING THE REMOVAL OF DISEASED TREES • 6e. RESOLUTION NO. 2011 -102 APPOINTING NORTHERN CAPITAL INSURANCE GROUP AS AGENT OF RECORD FOR THE CITY OF BROOKLYN CENTER 6f. RESOLUTION NO. 2011 -103 AUTHORIZING LEASE BETWEEN CITY OF BROOKLYN CENTER AND LOGIS FOR POLICE BUILDING SPACE 6g. RESOLUTION NO. 2011 -104 AUTHORIZING ACQUISITION OF EASEMENTS FOR NORTHWEST FAMILY SERVICE CENTER ADDITION Motion passed unanimously. 7. PRESENTATIONS / PROCLAMATIONS /RECOGNITIONS/DONATIONS - None. 8. PUBLIC HEARINGS 07/11/11 -3- DRAFT i 8a. RESOLUTION NO. 2011-105 VACATING CERTAIN DRAINAGE AND UTILITY EASEMENTS WITHIN LOT 3, BLOCK 1, OSSEO SCHOOLS WILLOW LANE . ADDITION; LOT 1, LOT 2 AND LOT 3, BLOCK 1, CENTER BROOK ADDITION; AND LOT 4, LOT 5, LOT 6, LOT 7, AND LOT 8, BLOCK 1, REPLAT OF BLOCK 2, LANG ADDITION; LOT 4, LOT 5, AND LOT 6, BLOCK 2, LANG ADDITION, HENNEPIN COUNTY, MINNESOTA Mr. Lillehaug introduced the item, presented the history, and described the request of the developer to authorize a partial release and termination of existing drainage and utility easements in connection with the final plat approval of Northwest Family Service Center Addition. It was noted the utility companies have been contacted and not objected to the vacation and rededication of these easements. Mr. Lillehaug explained the contingencies that would be placed on the vacation of easements, if approved, and indicated it is staff s opinion that all easements proposed to be vacated are fully encompassed in rededicated easements as part of the project's final plat and would not negatively affect rights to public easements. Councilmember Ryan asked if this is the last remaining approval required for the project to move forward. Mr. Boganey stated approval of the final plat will be the final Council action. Councilmember Lasman moved and Councilmember Ryan seconded to open the Public Hearing. Motion passed unanimously. No one appeared to address the Council • Councilmember Roche moved and Councilmember Ryan seconded to close the Public Hearing. Motion passed unanimously. Councilmember Roche moved and Councilmember Kleven seconded to approve RESOLUTION NO. 2011 -105 Vacating Certain Drainage and Utility Easements Within Lot 3, Block 1, Osseo Schools Willow Lane Addition; Lot 1, Lot 2 and Lot 3, Block 1, Center Brook Addition; And Lot 4, Lot 5, Lot 6, Lot 7, and Lot 8, Block 1, Replat of Block 2, Lang Addition; Lot 4, Lot 5, and Lot 6, Block 2, Lang Addition, Hennepin County, Minnesota. Motion passed unanimously. 9. PLANNING COMMISSION ITEMS - None. 10. COUNCIL CONSIDERATION ITEMS • 07/11/11 -4- DRAFT 10a. RESOLUTION NO. 2011 -106 APPROVING FINAL PLAT FOR NORTHWEST • FAMILY SERVICE CENTER ADDITION Mr. Boganey introduced the item and stated the purpose of the proposed resolution to approve the final plat. It was noted that approval was contingent upon nine conditions. Councilmember Lasman moved and Councilmember Ryan seconded to approve RESOLUTION NO. 2011-106 Approving Final Plat for Northwest Family Service Center Addition. Motion passed unanimously. 10b. AMEND 2011 CITY COUNCIL MEETING SCHEDULE Mr. Boganey introduced the item and staff s recommendation to amend the 2011 City Council meeting schedule. Councilmember Kleven moved and Councilmember Lasman seconded to amend the 2011 City Council meeting schedule as follows: 1. Add Budget Work Sessions on September 6 (Tuesday) and October 17 at 6:30 p.m. in the Council Chambers; 1. Cancel November 21, Budget Work Session; 3. Cancel November 28 Budget Hearing; and, 4. Add Budget and Taxation Presentation and Hearing on December 5 at 7:00 p.m. in the Council Chambers. Motion passed unanimously. • 11. COUNCIL REPORT Councilmember Kleven reported on her attendance at the following: • July 13, 2011, ground breaking for Northwest Family Services Center • July 13, 2011, neighborhood meeting at Riverdale Park • July 14, 2011, Planning Commission meeting • July 19, 2011, Housing Commission meeting • July 21, 2011, toured five renovated single- family homes now ready for sale and occupancy Councilmember Ryan reported on his attendance at the following: • July 13, 2011, Northwest Family Services Center ground breaking ceremony • July 13, 2011, Brooklyn Center Centennial Committee meeting • July 13, 2011, neighborhood meeting at Riverdale Park • July 19, 2011, second meeting of Forum on Domestic Violence Councilmember Ryan announced the September 15, 2011, neighborhood meeting at Bellvue Park, the August 1, 2011, National Night Out Kickoff Party and City Expo at Centennial Park from 6 p.m. to 8 p.m., and the August 2, 2011, National Night Out event. • 07/11/11 -5- DRAFT Councilmember Lasman reported on her attendance at the following: • July 12, 2011, MAC meeting • • July 13, 2011, Northwest Family Services Center ground breaking ceremony • July 13, 2011, Riverdale Park neighborhood meeting • July 13, 2011, Centennial Committee meeting to plan upcoming events • July 14, 2011, ARM meeting for rental property owners and Police Department • July 20, 2011, Crime Prevention meeting Councilmember Lasman announced the August 2, 2011, National Night Out, expected 100 block parties, and encouraged all to participate. Councilmember Roche commented on the CEAP building and connection with the Northwest Family Services Center and thanked staff for their work on this project. He also thanked Councilmember Lasman for her contribution to the time capsule. Councilmember Roche announced a vacancy on the Financial Commission and invited interested residents to contact City Hall. He described the location of Centennial Park and encouraged residents to make the August 2, 2011, National Night Out event even more successful by participating. Mayor Willson reported on his attendance at the following: • July 13, 2011, ground breaking for the CEAP and Hennepin County Family Services Center building • July 13, 2011, meeting with area pastors • July 13, 2011, meeting with Mr. Boganey and the Organization of Liberians of Minnesota • board members • July 13 2011, Riverdale Park neighborhood meeting. He noted the next and last neighborhood meeting for this year will be held at Bellvue Park on September 15, 2011. • July 23, 2011, presented a proclamation to the Organization of Liberians in Minnesota celebrating their 164 Independence Day at Crowne Plaza that was also attended by former Mayors Cohen and Kragness and three Brooklyn Park Council Members • July 23, 2011, welcomed those attending the Murphy family reunion at Embassy Suites including Essie Williams, a 93- year -old family member from Chicago • The Mayor's Minute interview with Cable 12 12. ADJOURNMENT Councilmember Lasman moved and Councilmember Ryan seconded adjournment of the City Council meeting at 7:37 p.m. Motion passed unanimously. • 07/11/11 -6- DRAFT MINUTES OF THE PROCEEDINGS OF THE CITY COUNCIL/ECONOMIC • DEVELOPMENT AUTHORITY OF THE CITY OF BROOKLYN CENTER IN THE COUNTY OF HENNEPIN AND THE STATE OF MINNESOTA WORK SESSION JULY 25, 2011 CITY HALL — COUNCIL CHAMBERS CALL TO ORDER The Brooklyn Center City Council /Economic Development Authority (EDA) met in Work Session called to order by Mayor/President Tim Willson at 7:42 p.m. ROLL CALL Mayor/President Tim Willson and Councilmembers /Commissioners Carol Kleven, Kay Lasman, Tim Roche, and Dan Ryan. Also present were City Manager Curt Boganey, Director of Fiscal and Support Services Dan Jordet, Public Works Director /City Engineer Steve Lillehaug, Director of Business and Development Gary Eitel, and Carla Wirth, TimeSaver Off Site Secretarial, Inc. PROPOSAL BY WINGS FINANCIAL FOR THE TERMINATION OF THE CEMENT POND/FOUNTAIN EASEMENT AND DEDICATION OF A NEW TRAIL EASEMENT City Manager Curt Boganey summarized the earlier Study Session discussion and consensus of the City Council/EDA to terminate the existing Cement Pond Easement. He indicated staff will bring forward a resolution for that action as well as cost estimates for construction of a trail, lighting options, and installation/maintenance of a fountain. FINANCIAL COMMISSION REPORT — UTILITY COLLECTION Director of Fiscal & Support Services Dan Jordet introduced the item, explaining that at the direction of the City Council/EDA, the Financial Commission examined utility bill collections with the ultimate goal of reducing the number and dollar amounts assessed against properties. He reported on the options considered by the Financial Commission such as monthly billing of smaller amounts, flat rate payment plans, credit card payments, early pay discounts, increasing late fees, as well as the pros /cons of each. Mr. Jordet reported that the options of credit card payments and ACH payment have been implemented. He stated all utility customers received information on the ACH payment option and estimated that 7 -10% are interested in that method of payment. Mr. Jordet described other options raised by the Financial Commission relating to notification of consumer credit rating services for nonpayment, charging interest on payments certified for collection, clearly marking envelopes to identify it is a utility bill, not sending the first . assessment letter reminding their utility payment is overdue and requesting payment, and a 07/25/11 -1- DRAFT policy issue relating to the criteria for account write -off. Mr. Jordet reported that virtually all utility bills are collected because it is a secured lien and eventually paid with property taxes. He explained the Financial Commission will continue its discussion and draft a memorandum of • recommendation for ' o the Council's consideration. The City Council/EDA discussed the options proposed by the Financial Commission and consensus was indicated to support the following: ACH payment option and recommended additional notices be included in future billings; promotion of electronic billing /payment as being a "green" initiative; clearly identifying on the envelope that the utility bill is enclosed; an early pay discount; continuing to mail the first payment reminder notice prior to certification since it results in a high level of payment; certifying delinquent bills once a year to Hennepin County for collection; and, assessing interest/penalties to assure all certification processing and staff costs are covered. It was discussed whether increasing late penalty fees would result in fewer delinquent accounts. Mr. Jordet noted the late penalty fees are already severe. The City ouncil /EDA in ill y indicated that based on principle rt supported collection of all utility bills, teaching financial responsibility and so those costs are not passed to other taxpayers. However, it also considered best management practices for writing off smaller amounts that result in diminishing returns and do not justify expenditure of staff resources. Mr. Boganey agreed that staff time is a significant cost and the time used for utility collection cannot be recouped for other ,projects. Staff was asked to provide a cost estimate for collection • of delinquent utility bills, factoring in staff time. It was noted that if the staff time lost is detrimental to the City, the Council may need to consider additional staff. The City Council/EDA discussed whether non - payments and late payments should be reported to credit rating agencies. It was noted that virtually all utility payments are collected because certification to property taxes results in a secured property lien. Mr. Jordet stated he is not familiar with the process for reporting to credit rating agencies, potential time commitment, costs, or the follow -up process if someone is reported for nonpayment and then payment is made. The City Council/EDA thanked the Financial Commission for its work on this matter. Mr. Boganey stated the City Council/EDA's input has been useful and will be shared with the Financial Commission. ADJOURNMENT Councilmember /Commissioner Kleven moved and Councilmember /Commissioner Ryan seconded adjournment of the City Council/Economic Development Authority Work Session at 8:15 p.m. Motion passed unanimously. • 07/25/11 -2- DRAFT City Council Agenda Item No. 6b • COUNCIL ITEM MEMORANDUM . DATE: August 2, 2011 TO: Curt Boganey, City Manager FROM: Maria Rosenbaum, Deputy City Clerk n SUBJECT: Licenses for City Council Approval Recommendation: It is recommended that the City Council consider approval of the following licenses at its August 8, 2011, meeting. Background: The following businesses /persons have applied for City licenses as noted. Each business /person has fulfilled the requirements of the City Ordinance governing respective licenses, submitted appropriate applications, and paid proper fees. Applicants for rental dwelling licenses are in compliance with Chapter 12 of the City Code of Ordinances, unless comments are noted below the property address on the attached rental report. AMUSEMENT DEVICES • American Amusement Arcades 2 West 96 Street, Bloomington Dandy Amusements International Inc. 2265 Ward Avenue, Simi Valley, CA Metro Coin of Minnesota 14940 28 Avenue N, Plymouth Theisen Vending Company 2335 Nevada Avenue N, Golden Valley MECHANICAL Ben Franklin Plumbing 1424 2rd Street N, Minneapolis DeZiel Heating & A/C 1612 Third Avenue NE, Buffalo Dietrich Mechanical 4353 Sequoia Drive, Eagan Heating & Cooling Two, Inc. 18550 County Road 81, Maple Grove Knight Heating & Air 13535 89 Street NE, Otsego Liberty Comfort Systems 627 East River Road, Anoka RENTAL See attached report. Mission: Ensuring an attractive, clean, safe community that enhances the duality of life and preserves the public trust COUNCIL ITEM MEMORANDUM Rental License Category Criteria Policy — Adopted by City Council 03 -08 -10 i Property Code and Nuisance Violations Criteria i License Category Number of Units Property Code Violations per (Based on Property Inspected Unit Code Only) Type I — 3 Year 1 -2 units 0 -1 Type II — 2 Year 1 -2 units Greater than 1 but not more than 4 Type III —1 Year 1 -2 units Greater than 4 but not more than 8 �reaterYian lr 5 b�riQt rnp than AK . Type IV — 6 Months 1 -2 units Greater than 8 3, ��a er that License Number of Units Validated Calls for Disorderly Conduct Category Service & Part I Crimes (Calls Per Unit /Year) No Category 1 -2 0 -1 Impact O . ` . h0 . 5 or more units 0-0.35 . Decrease 1 1 -2 Greater than 1 but not more than 3 Category 025 but nc�t more than 1 .. 5 or more units Greater than 0.35 but not more than 0.50 Decrease 2 1 -2 Greater than 3 Categories 5 or more units Greater than 0.50 Budget Issues: There are no budget issues to consider. • Mission: Ensuring an attractive, cleats, safe community that enhances the nualitti of life and preserves the public trust Rental Licenses for Council Approval on August 8, 2011 Property Final Dwelling Renewal Code License Police License Unpaid Unpaid Property Address Type or Initial Owner Violations Type CFS * Type ** Utilities Taxes 3207 64th Ave N Single Family Initial Willard Weisberg 5 III N/A III OK OK 1342 67th Ln N Single Family Initial Christian Mayer 0 II N/A II OK OK 5446 72nd Cir Single Family Initial Michael Ditto 0 II N/A II OK OK 6706 Drew Ave N Single Family Initial Yang Yang Zheng 0 II N/A II OK OK 5550 France Ave N Single Family Initial Belinda Gonzalez 0 II N/A II OK OK 5436 Logan Ave N Single Family Initial Shane Mclean 8 III N/A III OK OK 1 Bldg 5 120157th Ave N 4 Units Renewal Edward Doll 1.25/Unit II 0 II OK OK 1 Bldg 1 1 4819 Azelia Ave N 12 Units Renewal Penelope Brown .08/Unit I .08/Unit I OK OK 5324-26 James Ave N Two Family(2) Renewal Steven & Debra Elhardt 0 1 1 1 OK OK 5320 Queen Ave N Two Family(1) Renewal Steven Heinz 0 1 0 1 OK OK 5400-02 Russell Ave N Two Family(2) Renewal Tai Pham 0 1 1 1 OK OK 2200 55th Ave N Single Family Renewal HNA Properties Inc. 2 11 0 11 OK OK 5118 66th Ave N Single Family Renewal Scott Hanson 5 111 0 111 OK OK 6300 France Ave N Single Family Renewal Wade Klick 1 1 0 1 OK OK 5405 Girard Ave N Single Family Renewal Jef Mehr 1 1 0 1 OK OK 5528 Humboldt Ave N Single Family Renewal Bruce Goldberg 0 1 0 1 OK OK 5307 Penn Ave N Single Family Renewal Ben Dossman 1 1 0 1 OK OK *CFS=Calls For Service for Renewal Licenses Only(Initial Licenses are not applicable to calls for service and will be listed N/A.) ** Final License Type Type I=3 year Type 11=2 year Type III=1 year • City Council Agenda Item No. 6c • COUNCIL ITEM MEMORANDUM DATE: August 8, 2011 TO: Curt Boganey, City Manager FROM: Vickie Schleuning,lssistant City Manager/Director of Building & Community Standards SUBJECT: Resolution Calling for a Public Hearing on Proposed Special Assessments for, Delinquent Nuisance Abatement Costs, Delinquent Administrative Fines /Citations, and Delinquent Administrative Vacant Building Registrations Recommendation: It is recommended that the City Council consider approval /adoption of the resolution ordering a public hearing for Monday, September 12, 2011 at 7 p.m. or as soon thereafter as the matter may be heard, to hear and pass upon any objections to the proposed special assessments for delinquent nuisance abatement accounts, delinquent administrative fines /citations, and delinquent administrative vacant building registrations. Background: • The attached resolution calls for a public hearing to receive public testimony and comments regarding the proposed special assessments for delinquent nuisance abatement accounts, delinquent administrative fines /citations, and delinquent administrative vacant building registrations. The special, assessment amounts are specified in the attached preliminary g p p p assessment rolls. • Delinquent nuisance abatement account property owners have received notice of delinquent accounts in accordance with the established collection policy and have not made payments. • Delinquent administrative fines /citations have been issued to property owners in accordance to established policy and have not been paid. • Owners of properties that have been administratively registered as vacant have received notice of delinquent accounts in accordance with the established collection policy and have not made payments. At the scheduled public hearing, the City Council would consider adoption of the resolution to certify the special assessment levy rolls with Hennepin County. The 2011 interest rate for special assessments is six percent, as previously established by the Council. A copy of the special assessment pending levy roll is attached. Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM Budget Issues: • The proposed levy roll for delinquent nuisance abatement costs totals $14,540.00. The proposed levy roll for delinquent administrative fines /citations costs totals $22,875.00. The proposed levy roll for delinquent administrative vacant building registrations is $1,400.00. Council Goals: Strategic: 1. We will ensure a safe and secure community 2. We will stabilize and improve residential neighborhoods • Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust • adoption: Member introduced the following resolution and moves its RESOLUTION NO. RESOLUTION CALLING FOR A PUBLIC HEARING ON PROPOSED SPECIAL ASSESSMENTS FOR DELINQUENT NUISANCE ABATEMENT COSTS, DELINQUENT ADMINISTRATIVE FINES /CITATIONS, AND DELINQUENT ADMINISTRATIVE VACANT BUILDING REGISTRATIONS WHEREAS, the City performs and incurs costs for certain neighborhood maintenance services to protect public health, safety and welfare; and WHEREAS, Minnesota Statutes Chapter 429, provides for a public hearing process to recover the costs through special assessments; and WHEREAS, the City has performed neighborhood maintenance services, billed the property owners, and has not been reimbursed by certain property owners; and NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that: • 1. A hearing shall be held on the 12th day of September, 2011, in City Hall at 7 p.m. or as soon thereafter as the matter may be heard, to pass upon the proposed assessments for the following charges: • Delinquent Nuisance Abatement Costs * Delinquent Administrative Fines /Citations • Delinquent Administrative Vacant Building Registration 2. The City Clerk with the assistance of the Director of Building and Community Standards shall forthwith prepare assessment rolls for the above charges, and shall keep them on file and open to inspection by any interested persons. 3. The City Clerk is directed to cause a notice of the hearing on the proposed assessment to be ublished once in the official . newspaper er at least two weeks prior to the hearing. P P g pP 4. The City Clerk shall cause mailed notice to be given to the owner of each parcel described in such assessment rolls not less than two weeks prior to the hearing. BE IT FURTHER RESOLVED BY THE City Council of the City of Brooklyn Center that this resolution shall be effective immediately. • September 12, 1011 Date Mayor RESOLUTION NO. ATTEST: City Clerk i 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. m • • Special Assessment Pending Levy Roll (Abatement) 2011 Abatement Printed August 3, 2011 O unicipal Code No. 22. Levy Runs One Year Levy No. Owner Name(s) Property Address Property ID Amount 17877 GMAC MORTGAGE U S BANK N A 5910 Emerson Ave N 01- 118 -21 -22 -0010 275.00 17877 Michelle Robins 5737 Girard Ave N 01- 118 -21 -23 -0088 500.00 17877 Julio Cesar Segura 5651 Dupont Ave N 01- 118 -21 -32 -0001 255.00 Elva Ramos 17877 Julie Ann Olson 54214th St N 01- 118 -21 -43 -0058 475.00 17877 Amer Home Mtg Sery Deutsche Bank Natl 5836 Vincent Ave N 02- 118 -21 -23 -0002 225.00 Trust Co 17877 Ambe Oscar Funwi 5337 Queen Ave N 02- 118 -21 -34 -0037 330.00 17877 Judy Follmer 5343 Penn Ave N 02- 118 -21 -34 -0039 240.00 Eugene Follmer 17877 Bank of America N A Bac Home Loans 5603 Knox Ave N 02- 118 -21 -41 -0075 250.00 Servicing LP 17877 Lannette Weiland 2106 Ericon Dr 02- 118 -21 -42 -0101 475.00 17877 EMC Mortgage Corp Bank of America N A 5301 Newton Ave N 02- 118 -21 -43 -0022 880.00 17877 Secy Hsg and Urban Devel 5319 Oliver Ave N 02- 118 -21 -43 -0033 225.00 17877 Bank of America N A 5332 James Ave N 02- 118 -21 -44 -0108 1,240.00 17877 Vision Zenith Holding LLC 3508 Admiral La 03- 118 -21 -13 -0045 565.00 17877 Bac Home Loans Servicing LP 5841 Xerxes Ave N 03- 118 -21 -14 -0002 240.00 7877 Lucky Igbinoba 3906 61st Ave N 03- 118 -21 -21 -0108 305.00 Justina Igbinoba 17877 Citmortgage Inc 3906 Burquest La 03- 118 -21 -31 -0029 885.00 17877 Mary Ann Snow 5549 Brooklyn Blvd 03- 118 -21-42 -0018 215.00 17877 Cherzon Riley 3000 53rd Ave N 03- 118 -21 -44 -0025 590.00 Angela Towers 17877 Russell Smith 4937 Brooklyn Blvd 10- 118 -21 -14 -0012 700.00 17877 Loan Guaanty Div Sec of Veterans Affairs 5018 Abbott Ave N 10- 118 -21 -14 -0085 225.00 17877 Mn Housing Agency 7207 Girard Ave N 25- 119 -21 -32 -0031 475.00 17877 Wells Fargo Bank N A 7136 Newton Ave N 26- 119 -21 -42 -0050 225.00 17877 Federal Natl Mortgage Assn 6931 Newton Ave N 26- 119 -21 -43 -0025 410.00 17877 Wells Fargo Bank N A 6937 Indiana Ave N 27- 119 -21 -34 -0002 245.00 17877 Chase Home Finance LLC 3618 72nd Ave N 27- 119 -21 -42 -0070 540.00 17877 Citimortgage Inc 6742 Regent Ave N 33- 119 -21 -11 -0096 310.00 17877 Merchants Bank N A 6530 Orchard Ave N 33- 119 -21 -14 -0002 275.00 17877 OCWEN LOAN SERV HSBC Bank USA N A 4900 Howe La 33- 119 -21 -14 -0049 595.00 17877 Chase Horne Finance LLC 6431 Perry Ave N 33- 119 -21 -41 -0067 265.00 17877 Wells Fargo Bank N A 6337 Quail Ave N 33- 119 -21 -41 -0119 805.00 17877 Charles Hargrove 6424 Major Ave N 34- 119 -21 -32 -0014 250.00 Rosa Hargrove 17877 Tracy Corwin 3306 62nd Ave N 34- 119 -21 -44 -0060 800.00 Thomas Corwin 17877 Attn: Foreclosure Wells Fargo Bank N A 6324 Brooklyn Dr 35- 119 -21 -31 -0007 250.00 City of Brooklyn Center - 6301 Shingle Creek Parkway - Brooklyn Center MN 55430 Page 1 of Special Assessment Pending Levy Roll (Abatement) 2011 Abatement Printed August 3, 2011 Municipal Code No. 22 Levy Runs One Year • Lew No. Owner Name(s) Property Address Property ID Amount Total: 14,540.00 • • City of Brooklyn Center - 6301 Shingle Creek Parkway - Brooklyn Center MN 55430 Page 2 of 2 Special Assessment Pending Levy Roll (Admin Fines /Citations) 2011 Administrative Penalty /Citation Printed August 3, 2011 0 4unicipal Code No. 22 Levy Runs One Year Levy No. Owner Name(s) Property Address Property ID Amount 17881 Duane Murschel 5943 Colfax Ave N 01- 118 -21 -21 -0018 125.00 Kathleen Murschel 17881 Miguel Vergara 5931 Colfax Ave N 01- 118 -21 -21 -0020 875.00 17881 Amos Guar 5800 Dupont Ave N 01- 118 -21 -24 -0025 375.00 Marie Guar 17881 Santa Pirin 5319 Camden Ave N 01- 118 -21 -34 -0014 125.00 Marcos Cielo 17881 Margarita Cortes 5614 Camden Ave N 01- 118 -21 -42 -0032 125.00 17881 Dexter Williams 5728 Irving Ave N 02- 118 -21 -14 -0093 125.00 Charlene Guerrero 17881 US Bank Home Mortg Minn Housing Finance 5931 Vincent Ave N 02- 118 -21 -22 -0038 125.00 Agency 17881 Bac Home Loans Servicing LP 5612 Lilac Dr N 02- 118 -21 -31 -0010 125.00 17881 Helen Osonowo 2318 55th Ave N 02- 118 -21 -34 -0009 250.00 17881 Ambe Oscar Funwi 5337 Queen Ave N 02- 118 -21 -34 -0037 250.00 17881 Judy Follmer 5343 Penn Ave N 02- 118 -21 -34 -0039 125.00 Eugene Follmer 17881 Linda Anderson 5603 James Ave N 02- 118 -21 -41 -0059 1,875.00 Bernadette Anderson 7881 Luis Juarez - Ferrer 1900 Brookview Dr 02- 118.21 -42 -0111 875.00 17881 EMC Mortgage Corp Bank of America N A 5301 Newton Ave N 02- 118 -21 -43 -0022 375.00 17881 Federal Home Loan Mtg Corp 5924 Beard Ave N 03- 118 -21 -11 -0071 125.00 17881 Zachary Zajicek 5906 Abbott Ave N 03- 118 -21 -11 -0085 125.00 Bethany Zajicek 17881 Brian Krohn 5924 Abbott Ave N 03- 118 -21 -11 -0088 125.00 17881 Rockwell Investments LLC 6031 Brooklyn Blvd 03- 118 -21 -12 -0015 125.00 17881 Vision Zenith Holding LLC 3508 Admiral La 03- 118 -21 -13 -0045 125.00 17881 Jay Severson 6025 June Ave N 03- 118 -21- 22.0007 125.00 17881 Somphaena Soundara 5937 June Ave N 03- 118 -21 -22 -0020 125.00 Lavonne Soundara 17881 Nationstar Mortgage LLC 5811 Lake Curve La 03- 118 -21 -23 -0039 125.00 17881 Robert Batta 5655 Brooklyn Blvd 03- 118 -21 -42 -0017 2,500.00 17881 On Time Contractors Inc 5349 Sailor La 03 -118 -21-43 -0013 375.00 17881 Scott Hughes 5348 Northport Dr 03- 118 -21 -43 -0042 125.00 17881 Secy of Verterans Affairs 5510 France Ave N 03- 118 -21 -43 -0090 125.00 17881 Donald Dine 5139 Xerxes Ave N 10- 118 -21 -11 -0003 125.00 Lila Oine 17881 Kathleen Barclay 3401 53rd Ave N 10- 118 -21 -12 -0001 125.00 John Barclay 17881 Mai Xiong 5247 Drew Ave N 10- 118 -21 -12 -0012 125.00 7881 Todd Scholl 7201 France Ave N 27- 119 -21 -31 -0008 125.00 Kelli Scholl 17881 MGC Mortgage Inc LNV Corporation 7212 Kyle Ave N 27- 119 -21- 32.0090 125.00 City of Brooklyn Center 6301 Shingle Creek Parkway - Brooklyn Center MN 55430 Page 1 of 3 Special Assessment Pending Levy Roll (Admin Fines /Citations) 2011 Administrative Penalty /Citation Printed August 3, 2011 Municipal Code No. 22 Levy Runs One Year Levy No. Owner Name(sl Property Address Property ID Amount 17881 Sean Sullivan. 6933 Major Ave N 27- 119 -21 -33 -0039 375.00 17881 Judith O'Dean 6915 Major Ave N 27- 119 -21 -33 -0042 250.00 17881 Wells Fargo Bank N A 6937 Indiana Ave N 27- 119 -21 -34 -0002 125.00 17881 James Capehart 7036 Grimes Ave N 27- 119 -21 -34 -0080 125.00 Veronica Capehart 17881 Chase Home Finance LLC 3618 72nd Ave N 27- 119 -21 -42 -0070 125.00 17881 Kimberly Albers 7013 Drew Ave N 27- 119 -21 -43 -0018 125.00 17881 Bank of America NA Bac Home Loans 6930 France Ave N 27- 119 -21 -43 -0051 125.00 Servicing 17881 Sufeng Zheng 6910 France Ave N 27- 119 -21 -43 -0062 125.00 17881 Hogenson Properties Ltd 3813 Urban Ave 27- 119 -21 -43 -0063 125.00 17881 Trina Taylor 7207 Perry Ct E 28- 119 -21 -41 -0182 125.00 Cecil Kimaro 17881 Dona Vang Vue 6924 Scott Ave N 28- 119 -21 -43 -0012 125.00 Vakoua Thao 17881 Yee Xiong 6523 Unity Ave N 33- 119 -21 -13 -0079 125.00 17881 Thong Vue 5100 Winchester La 33- 119 -21 -14 -0020 125.00 Ge Khang 17881 OCWEN LOAN SERV HSBC Bank'USA N A 4900 Howe La 33- 119 -21 -14 -0049 125.00 17881 Erick Bates 6413 Noble Ave N 33- 119 -21 -41 -0006 125.00 . Susan Bates 17881 Todd Vlasaty 4707 Eleanor La 33- 119 -21 -41 -0026 125.00 17881 Ralph Gohman 6413 Orchard Ave N 33- 119 -21 -41 -0036 125.00 17881 Willis Rogers 5207 65th Ave N 33- 119 -21 -42 -0035 125.00 Dorothy Rogers 17881 Oscar Rivera 5319 Eleanor La 33- 119 -21 -42 -0112 375.00 Silvestre Rivera 17881 Stewards Vang 6307 Scott Ave N 33- 119 -21 -42 -0126 125.00 Sao Lee 17881 Federal Home Loan Mtg Corp 5318 62nd Ave N 33- 119 -21 -43 -0091 125.00 17881 Natl City Re Services LLC 6119 Perry Ave N 33- 119 -21 -44 -0045 125.00 17881 Michelle Murch 6707 Drew Ave N 34- 119 -21 -12 -0026 125.00 17881 Clarence Dudley 6510 Brooklyn Blvd 34- 119 -21 -13 -0010 500.00 17881 Lee Thao 3707 66th Ave N 34- 119 -21 -13 -0028 125.00 Ker Thao 17881 Janis Salo 6543 Beard Ave N 34- 119.21 -13 -0060 875.00 17881 MAE Properties LLP 6500 Brooklyn Blvd 34- 119 -21 -13 -0084 500.00 MAE Properties LLP 17881 Dao Moua 3125 66th Ave N 34- 119 -21 -14 -0060 125.00 Tong Moua 17881 Jeffrey Garding 3016 Quarles Rd 34- 119 -21 -14 -0081 125.00 • 17881 Kao Moua 4412 65th Ave N 34- 119 -21 -23 -0060 125.00 Pang Moua City of Brooklyn Center - 6301 Shingle Creek Parkway - Brooklyn Center MN 55430 Page 2 of 3 Special Assessment Pending Levy Roll (Admin Fines /Citations) 2011 Administrative Penalty /Citation Printed August 3, 2011 �unicipal Code No. 22 Levy Runs One Year Levy No. Owner Name(s) Property Address Property ID Amount 17881 Mao Thao 6318 Grimes Ave N 34- 119 -21 -31 -0025 125.00 Her Cha Yang 17881 Chase Home Finance U S BANK N A 6401 Major Ave N 34- 119 -21 -32 -0024 125.00 17881 Gabriel Sayee 6121 France Ave N 34- 119 -21 -34 -0017 375.00 Bernice Sayee 17881 U S Bank N A 6231 France Ave N 34- 119 -21 -34 -0092 125.00 17881 Kyle Nguyen 3200 63rd Ave N 34- 119 -21 -41 -0009 125.00 17881 Aaron Melby 3124 64th Ave N 34- 119 -21 -41 -0024 125.00 17881 M Donald Blom 6301 Brooklyn Blvd 34- 119 -21 -42 -0007 875.00 17881 Tracy Corwin 3306 62nd Ave N 34- 119 -21 -44 -0060 125.00 Thomas Corwin 17881 Attn: Foreclosure Wells Fargo Bank N A 6324 Brooklyn Dr 35- 119 -21 -31 -0007 125.00 17881 Roxanne Hamilton 2806 Nash Rd 35- 119 -21 -33 -0033 125.00 17881 David Berg 6842 West River Rd 36- 119 -21 -12 -0011 3,250.00 Gwendyne Berg 17881 Wells Fargo Bank N A 6601 Camden Dr 36- 119 -21 -13 -0105 125.00 17881 Mariam Ibrahim 6645 Bryant Ave N 36- 119 -21 -24 -0052 375.00 17881 Carla Nelson 6214 Lilac Dr N 36- 119 -21 -33 -0006 125.00 17881 Earl Washington 6101 Dupont Ave N 36- 119 -21 -33 -0024 125.00 Lurlean Washington 17881 Deutsche Bank Natl Trust Co 6106 Emerson Ave N 36- 119 -21 -33 -0026 125.00 17881 Non Her 6252 Bryant Ave N 36- 119 -21 -34 -0098 125.00 Total: 22,875.00 • City of Brooklyn Center - 6301 Shingle Creek Parkway - Brooklyn Center MN 55430 Page 3 of 3 Special Assessment Pending Levy Roll (Administrative Vacant Building Registration) 2011 Administrative Vacant Building Registration Printed August 3, 2011 Municipal Code No. 22 Levy Runs One Yea* Levy No. Owner Name(sl Property Address Property ID Amount 17879 Wells Fargo Bank N A 6027 Fremont Ave N 01- 118 -21 -22 -0064 400.00 17879 Katherine Honkonen 5316 Colfax Ave N 01- 118 -21 -34 -0125 1,000.00 Total: 1,400.00 • • City of Brooklyn Center - 6301 Shingle Creek Parkway - Brooklyn Center MIT 55430 Page 1 of 1 City Council Agenda Item No. 6d • • COUNCIL ITEM MEMORANDUM DATE: August 1, 2011 TO: Curt Boganey, City Manager FROM: Tom Bublitz, EDA/HRA Specialis THROUGH: Gary Eitel, Director of Business and Development SUBJECT: Resolution Approving Subrecipient Agreements for Hennepin County Neighborhood Stabilization Program (3 HUD NSP3 and MHFA NSP 3 Agreements) Recommendation: It is recommended that the City Council consider adoption of Resolution Approving Subrecipient Agreements for Hennepin County Neighborhood Stabilization Program 3 HUD NSP3 and MHFA NSP 3). Background: On July 21, 2010 Congress passed the Wall Street Reform and Consumer Protection Act of 2010 also known as the Dodd Frank Act The Act Amon numerous other provisions, The Act ( )• g p • provides funding for "emergency assistance for redevelopment of abandoned and foreclosed homes and residential properties ". The Department of Housing and Urban Development (HUD) administers the program. Hennepin County has been awarded $2,639,075 in NSP funds ($1,469,133 from HUD direct and $1,169,942 from MHFA's allocation from HUD). Hennepin County has awarded the following amounts of NSP 3 funds to the City of Brooklyn Center: • $690,250 from HUD direct allocation plus $12,500 in Administration Expenses. • $487,500 from MHFA NSP 3 allocation plus $12,500 in Administration Expenses. • Total allocation to Brooklyn Center $1,177,750 plus $25.000 in Administration As with NSP1, the expenditure of NSP 3 funds in Brooklyn Center is limited to specific geographic areas of the City as _determined by HUD's foreclosure impact formulas. Maps identifying the eligible NSP3 areas are included with this memorandum. NSP 3 funds will be administered in essentially the same manner as NSP 1 funds with some modifications. The following is a summary of NSP 3 funding requirements for the City of Brooklyn Center: • Eligible activities and expenditure requirements include acquisition and rehabilitation of approximately 17 single family homes with 75 percent sold to buyers at 120 percent of Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM the Area Median Income (AMI) or less and 25 percent sold to buyers at 50 percent AMI. • As with NSP1, the required NSP3 allocation for 50% AMI households is based on a statutory requirement allocating specific dollar amounts rather a specific number of a y Y homes set aside for 50% AMI buyers. The table below shows summary of the various allocations. NSP3 ALLOCATION 120 %AMI HOUSEHOLDS 500 AMI HOUSEHOLDS $690,250 (HUD DIRECT ) $506,250 $184,000 $487,500 (MHFA) $384,500 $103,000 • Eligible areas include the majority of the City's southeast neighborhood and a portion of the City's central neighborhood. (See attached maps.) • The time line for NSP 3 is as follows: o April 27, 2011 — effective date of agreement with Hennepin County. Note: the City received the final NSP 3 Subrecipient Agreements from the County in July 2011. o By October 12, 2012, expend $184,000 of HUD NSP 3 funds and $103,000 of MHFA NSP3 funds to 50 percent AMI households. By March 31, 2013, expend a minimum of $345,125 in HUD NSP 3 funds and $243,750 in MHFA NSP3 funds. o By March 31, 2014, expend $690,250 of HUD NSP 3 funds and $487,500 in MHFA NSP3 funds plus program income generated through implementation of • NSP 3 activities. • Major differences from NSP 1 to NSP 3 include: o Vicinity Hiring - NSP 3 requires that subrecipients take actions to provide for the hiring of contractors and/or contractor employees who reside in the vicinity of the census tracts affected by NSP 3. Vicinity hiring is triggered for contractors hiring workers if they are actively hiring new employees. Additionally, s u b c p ents re i i are required to seek cointractors/businesses that are q located in NSP 3 target areas for work related to NSP 3 activities in the specified census tracts. o MHFA NSP3 Financing acquisition/rehab — MHFA NSP 3 rules limit reimbursement of upfront NSP 3 costs to $50,000 per unit of NSP 3 funds, with the exception of units intended for 50 percent AMI households. This provision does not necessarily limit the rehab and/or acquisition expenditures to $50,000 but it does limit upfront NSP 3 cost reimbursement and requires the final gap cost to be obtained from sale proceeds of the home. Therefore, a portion of the acauisition/rehab costs for MHFA/NSP 3 projects will have to be financed until sale of the home occurs. This is something that would be reflected in a developer agreement similar to what is in place for NSP 1. o Development of Affordable Rental Housing HUD required Hennepin County to address affordable rental in its planning for NSP3. The thought on HUD's part was that potential 50% AMI buyers were no longer part of the market, having • had ample opportunity to purchase homes with previous rounds of the NSP 4fassion: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust COUNCIL ITEM MEMORANDUM • program. However, as Hennepin County specified in its "NSP3 Abbreviated Plan" required by HUD, "The County has not included a rental housing preference within its NSP3 program". The County does however, note in its "Abbreviated Plan ", "... the County has identified one potential property within the NSP3 program — Shingle Creek Tower — however, implementation requires a substantial amendment to this current plan ". This acknowledgement by Hennepin County that Shingle Creek Tower is a potential candidate for allocation of the 50% AMI NSP3 funds means that the property could be a beneficiary of NSP3 funding, assuming there is an opportunity that presents itself. Conclusion and Next Steps If the City Council approves the resolution relative to the NSP 3 Subrecipient Agreements (copies attached) with Hennepin County, staff recommends exploring a Development/Third Party Agreement with the Greater Metropolitan Housing Corporation for implementation of the NSP 3 program. Such an agreement would be returned to the City Council for consideration and approval. Budget Issues: NSP3 Administrative Funds are available to compensate for a limited amount of staff time needed to establish and administer the NSP3 Program along with reimbursement of any legal cost associated with drafting the necessary Development Agreements for the program. • Council Goals: Strategic: 3. We will stabilize and improve residential neighborhoods • Mission: Ensuring an attractive, c %rur, safe community that C'I! /raIICCS tI1C gnalin' of life and preserves the public trust HUD NSPJ NSP3 - HUD USER DATA MAPS 'm z / ( f �' §� Uap Trar % - _ it N 4 p$ f pw: N 2 » % mr Park § % & . " JHmyR { 7�_;a ƒ . / ± O dAve N o e sew . J f - m 7 / ƒ t § \ r q Nen R gG / \ / 'o; Central R ƒ y a � & % ® ®y u n m« k w ^mom >& ®® .k . , _ k @ G: N \_ A / � o_� es' u ,&,N Cr 2 6rdi, \wN7 } S�m : - \ - - -- 8�@7 \ / r »/ , m0 Bass mse% san Ave N a-AS, » < F A�� ®% g - - $_�e�. » \�; Brooklyn Center Census Tract 203.04_A bdk. Groups I and 3 � � � I I m 4 PP3 HUD USER DATA MAPS HUEOSP3 Gr \�� : ` P" - i Ave N z Q z - 6 51 h Ave M X F w ass 1.0t. Rd z z N C13 unty Rd 57 57(hAveN imimilyRoP 7' 55th AVE y 1 5 Ericon Dr F= ILI :j Ssw Ave W 3: IS-Eim Ave P 55th Ave N z e. A4S N ge Llnn,Pirk z 5 N g h Ave ti 2 < < z Lilac Ct m P ƒ » It, d Av- P-1 57nd n P-1 Brooklyn Center Census Trat20200 - 8lock Groups 2 and 3 MHFA NSP3 Brooklyn Center — NSP3 MN Housing Target Area Census Tract 206.00 Block Groups 1 & 2 - _ a 52nd Ave M A—N c 61st AvcM ✓ L . }. V � T Ili . '3J Sothkv.: t: Grand, ev, — =� ' ' 2• £4Ii A•re 41 Q- •. — Est-, Al }I V � J Z E5L. AveN 3 = F u _ A C LL Z 9` Pd County P,d 5'I 5rth Ave Di aunty of Ln Me v z - _ I M Ave • • its adoption: Member introduced the following resolution and moved RESOLUTION NO. RESOLUTION APPROVING SUBRECIPIENT AGREEMENTS FOR HENNEPIN COUNTY NEIGHBORHOOD STABILIZATION PROGRAM 3 (HUD NSP 3 AND MHFA NSP 3) WHEREAS, Hennepin County (Recipient) has received grants from the U.S. Department of Housing and Urban Development (HUD) and Minnesota Housing Finance Agency (MHFA) for Neighborhood Stabilization Program 3 (NSP3) under Section 1497 of the Wall Street Reform and Consumer Protection Act of 2010 (Public Law 111 -203, approved July 21, 2010, Dodd — Frank Act or "The Act ") as amended, for emergency assistance for redevelopment of abandoned and foreclosed homes and residential properties; and WHEREAS, pursuant to the requirements of The Act, Hennepin County has proposed Subrecipient Agreements for Hennepin County Neighborhood Stabilization Program 3, including HUD NSP 3 and MHFA NSP 3 (Subrecipient Agreements), for execution by the City of Brooklyn Center; and WHEREAS, recipient has approved use of $690,250 of HUD NSP 3 funds and • $487,500 of MHFA NSP 3 funds for the City of Brooklyn Center (Subrecipient) for the Implementation of Eligible and Fundable NSP activity (ies) as 'set forth in the Subrecipient Agreements; and WHEREAS, the City of Brooklyn Center's designated activity under the NSP 3 program includes the following: 1. Eligible use "E" Redevelopment ($690,250 from HUD NSP 3) 2. Eligible use "E" Redevelopment ($487,500 from MHFA NSP3) WHEREAS, pursuant to the Subrecipient Agreements between the City of Brooklyn Center and Hennepin County, the City agrees to assume certain responsibilities for the utilization of NSP 3 funds pursuant to the Subrecipient Agreements; and WHEREAS, approval of the Subrecipient Agreements by the City of Brooklyn Center is required in order to receive NSP 3 funding from Hennepin County. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, that it approves the Subrecipient Agreements from Hennepin County for Neighborhood Stabilization Program 3 (NSP 3) and authorizes the Mayor and City Manager to execute the agreements. • BE IT FURTHER RESOLVED that the City Council hereby authorizes and directs RESOLUTION NO. • the City Manager to prepare any required Third Party or Developer Agreements, on behalf of the City, for implementation of the NSP 3 program. BE IT FURTHER RESOLVED that the City Council authorizes the Mayor and City Manager to approve arty revisions to the Subrecipient Agreements as required by Hennepin County, said revisions shall not constitute a revision that will substantially affect the nature or intent of the Subrecipient Agreement. August 8, 2011 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon the following voted in favor thereof; • p g � g and the following voted against the same: whereupon said resolution was declared duly passed and adopted. • Hennepin County Agreement A110451 • SUBRECIPIENT AGREEMENT HENNEPIN COUNTY NEIGHBORHOOD STABILIZATION PROGRAM 3 (MHFA NSP3) THIS AGREEMENT made and entered into by and between the COUNTY OF HENNEPIN, STATE OF MINNESOTA, hereinafter referred to as 'RECIPIENT," A -2400 Government Center, Minneapolis, Minnesota 55487, and the city of BROOKLYN CENTER, hereinafter referred to as "SUBRECIPIENT," 6301 Shingle Creek Parkway North, Brooklyn Center, Minnesota 55430, said parties to this Agreement each being governmental units of the State of Minnesota, and is made pursuant to Minnesota Statutes, Section 471.59. WITNESSETH WHEREAS, RECIPIENT has received a grant from the Minnesota Housing Finance Agency of Neighborhood Stabilization Program 3 (MHFA NSP3) funding under Section 1497 of the Wall Street Reform and Consumer Protection Act of 2010 (Pub. L. 111 -203, approved July 21, 2010) (Dodd -Frank Act or the Act), as amended, for emergency assistance for redevelopment of abandoned and foreclosed homes and residential properties. Unless the Act states otherwise, such grants are to be considered Community Development Block Grant (CDBG) funds according to the implementing regulations at 24 CFR Part 570 (Catalog of Federal Domestic Assistance (CFDA) number 14.228). The grant program under the Act is commonly referred to as the CDBG Neighborhood Stabilization Program 3 (NSP3): and • WHEREAS, RECIPIENT has approved use of $487,500 of MHFA NSP3 funds by the SUBRECIPIENT in accordance with the budget attached hereto as for the implementation of eligible and fundable MHFA NSP3 activities as set forth in EXHIBIT 1 to this Agreement; and WHEREAS, the SUBRECIPIENT agrees to assume certain responsibilities for the implementation of the approved activities in the approved target areas described in EXHIBIT 1, said responsibilities being specified in part in the Joint Cooperation Agreement effective October 1, 2008, executed between RECIPIENT and the city of Brooklyn Center, and in the Hennepin County Consortium 2010 -2015 Consolidated Plan, as amended, and in the Certifications contained herein as EXHIBIT 2; and WHEREAS, except as otherwise provided in the Act and the October 19, 2010 Federal Register Notice of Formula Allocation and Program Requirements for Neighborhood Stabilization Program Formula Grants with Docket No. FR- 5447 —N -01 (the Notice), attached as EXHIBIT 3, statutory and regulatory provisions governing the CDBG Program, as applicable, shall apply to the use of MHFA NSP3 funds. NOW, THEREFORE, the parties do hereby agree as follows: 1. SCOPE OF SERVICES A. Except as described in the Notice statutory and regulatory provisions governing the CDBG Program, including those at 24 CFR Part 570 Subparts A, C, D, J, K, and O, as appropriate, shall apply to the use of MHFA NSP3 funds. • The SUBRECIPIENT shall expend all or any part of its MHFA NSP3 allocation only 1 on those activities identified in EXHIBIT 1, subject to the requirements of this Agreement and the stipulations and requirements set forth in this Agreement. • B. The SUBRECIPIENT shall take all necessary actions, not only to comply with the stipulations as set out in this Agreement, but to comply with any requests by the RECIPIENT in that connection; it being understood that the RECIPIENT is responsible to the Minnesota Housing Finance Agency and the U.S. Department of Housing and Urban Development (HUD) for ensuring compliance with such requirements. The SUBRECIPIENT also will promptly notify the RECIPIENT of any changes in the scope or character of the activities which it is implementing. C. At the request of the RECIPIENT, on a form to be provided or approved, the SUBRECIPIENT shall submit a schedule, corresponding to the term of this Agreement, showing milestones for activity implementation and timely expenditure of funds and will provide other information as requested to assure compliance with HUD timeliness requirements. 2. TERM OF AGREEMENT The effective date of this Agreement is April 27, 2011. The Agreement shall expire on March 11, 2014. Upon expiration, the SUBRECIPIENT shall relinquish to the RECIPIENT all program funds unexpended and uncommitted, and all accounts receivable attributable to the use of MHFA NSP3 funds for the activities described in EXHIBIT 1, as maybe amended. 3. TIMELINESS OF USE OF AND EXPENDITURE OF MHFA NSP3 FUNDS • No later than October 31, 2012, SUBRECIPIENT agrees to expend at least $103,000 of MHFA NSP3 funds to assist households at or below 50 percent of area median income as determined by HUD. No later than March 31, 2013, SUBRECIPIENT agrees to expend a minimum total of $243,750 in MHFA NSP3 funds. No later than March 31, 2014, SUBRECIPIENT agrees to expend a minimum total of $487,500 of MHFA NSP3 funds, plus any program income generated through the implementation of MHFA NSP3 activities. The RECIPIENT may reduce the Grant amount or cancel this Agreement and demand reversion of funds if RECIPIENT determines in its sole discretion that the start and expected completion of the MHFA NSP3 Activities is not within the above described timeframe. RECIPIENT will periodically review SUBRECIPIENT'S progress towards expected outcomes and may reduce or ^ - an ^ el funding for one or all Activities for lack of adequate reduce Vul Ivor funding 1 progress. Adequate progress will be determined by RECIPIENT in its sole discretion. 4. REPORTING If requested, on a form to be provided or approved by the RECIPIENT, SUBRECIPIENT shall submit a quarterly performance report no later than 15 days following the end of • 2 • each quarter, beginning 15 days after the completion of the first full calendar quarter after the effective date of this Agreement and continuing until all MHFA NSP3 funds (including program income) have been expended and those expenditures are included in a report to HUD. 5. THIRD PARTY AGREEMENTS The SUBRECIPIENT may subcontract this Agreement and /or the services to be performed hereunder, whether in whole or in part, only with the prior consent of the RECIPIENT and only through a written THIRD PARTY or DEVELOPER Agreement acceptable to the RECIPIENT. The SUBRECIPIENT shall not otherwise assign, transfer, or pledge this Agreement and /or the services to be performed hereunder, whether in whole or in part, without the prior consent of the RECIPIENT. 6. AMENDMENTS TO AGREEMENT Any material alterations, variations, modifications or waivers of provisions of this Agreement shall only be valid when reduced to writing as an amendment to this Agreement signed, approved, and properly executed by the authorized representatives of the parties. Any amendments to the approved activities, budgets or target area in EXHIBIT 1, which constitute a substantial amendment, will require public notice by the SUBRECIPIENT and an opportunity for public comment for 15 days prior to action on the proposed amendment by the Hennepin County Board of Commissioners. A substantial amendment is defined in • and must follow the process described in Citizen Participation Plan, which is Appendix B of the 2010 -2014 Consolidated Plan for the Hennepin County Consortium. In order to ensure that all MHFA NSP3 funds are expended as required, changes that are not substantial, will be coordinated by County staff subject to the review and approval of the Manager of Housing Development and Finance and the Director of Housing, Community Works and Transit. 7. PAYMENT OF MHFA NSP3 FUNDS The RECIPIENT agrees to provide the SUBRECIPIENT with MHFA NSP3 funds not to exceed the Hennepin County authorized budget to enable the SUBRECIPIENT to carry out its NSP3 - eligible activities as described in EXHIBIT 1. It is understood that the RECIPIENT shall be held accountable to the Minnesota Housing Finance Agency and HUD for the lawful expenditure of MHFA NSP3 funds under this Agreement. The RECIPIENT shall therefore make no payment of MHFA NSP3 funds to the SUBRECIPIENT and draw no funds from the Minnesota Housing Finance Agency on behalf of a SUBRECIPIENT activity, prior to having received a request for reimbursement for expenses incurred from the SUBRECIPIENT on a form to be provided by the RECIPIENT. In addition to the request form, SUBRECIPIENT shall provide copies of all documents and records needed to ensure that the SUBRECIPIENT has complied with the appropriate regulations and requirements. The RECIPIENT will provide reimbursement within 30 days of receipt and approval of all documents required under this section. • Upon acquisition of each MHFA NSP3 property, the SUBRECIPIENT will request reimbursement, referred to as the "Initial Reimbursement ", for the LESSER of the 3 acquisition price or the pro -forma anticipated value gap. Upon resale, the RECIPIENT will determine if the Initial Reimbursement amount was equal to, higher, or lower than the final MHFA NSP3 subsidy amount, referred to as the "Final Subsidy ". If the Initial Reimbursement amount was higher than the Final Subsidy, the SUBRECIPIENT will repay the difference between the Initial Reimbursement and the Final Subsidy, which will be revolved into another MHFA NSP3 Activity as program income. If the Initial Reimbursement amount is lower than the Final Subsidy, the SUBRECIPIENT will request a second reimbursement to cover the difference between the Initial Reimbursement and the Final Subsidy. Except for MHFA NSP3 properties acquired to assist households at or below 50 percent of area median income, reimbursement requests for MHFA NSP3 properties in Census Tract 206.00 Block Group 1 and 2 shall not exceed $50,000. 8. INDEMNITY AND INSURANCE A. The SUBRECIPIENT does hereby agree to defend, indemnify, and hold harmless the RECIPIENT, its elected officials, officers, agents, volunteers and employees from and against all costs, expenses, claims, suits or judgments arising from or growing out of any injuries, loss or damage sustained by any person or corporation, including employees of SUBRECIPIENT and property of SUBRECIPIENT, which are caused by or sustained in connection with the tasks carried out by the SUBRECIPIENT under this Agreement. B. In order to protect SUBRECIPIENT and RECIPIENT from liability and to effectuate the indemnification provisions hereinabove, each SUBRECIPIENT that is not self- • insured agrees that during the term of this Agreement it will carry a single limit or combined limit or excess umbrella commercial general liability policy in an amount equal to, but shall not be required to carry coverage in excess of, claim limits specified in Minnesota Statutes Section 466.04, as amended. C. This section shall in no way be intended by the parties hereto as a waiver of the liability limits specified in Minnesota Statutes Section 466.04, as amended. 9. CONFLICT OF INTEREST A. In the procurement of supplies, equipment, construction, and services by the SUBRECIPIENT, the conflict of interest provisions in 24 CFR 85.36 and OMB Circular A -110 shall apply. B. In all other cases, the SUBRECIPIENT shall comply with the conflict of interest provisions of Minnesota Statutes Sections 471.87- 471.88, and subpart K of 24 CFR 570.611. 10. DATA PRIVACY The SUBRECIPIENT agrees to abide by the provisions of the Minnesota Government Data Practices Act and all other applicable state and federal laws, rules, and regulations relating to data privacy or confidentiality, and as any of the same may be amended. The SUBRECIPIENT agrees to defend, indemnify and hold the RECIPIENT, its elected officials, officers, agents, volunteers and employees harmless from any claims resulting • from the SUBRECIPIENT'S unlawful disclosure and /or use of such protected data. 4 0 1 0— i 11. SUSPENSION OR TERMINATION A. If the SUBRECIPIENT materially fails to comply with any term of this Agreement or so fails to administer the work as to endanger the performance of this Agreement, this shall constitute noncompliance and default. Unless the SUBRECIPIENT'S default is excused by the RECIPIENT, the RECIPIENT may take one or more of the actions prescribed in 24 CFR 85.43, including the option of immediately canceling this Agreement in its entirety. B. The RECIPIENT'S failure to insist upon strict performance of any provision or to exercise any right under this Agreement shall not be deemed a relinquishment or waiver of the same. Such consent shall not constitute a general waiver or relinquishment throughout the entire term of the Agreement. C. This Agreement may not be terminated or withdrawn without cause by either party while this Agreement remains in effect. D. MHFA NSP3 funds allocated to the SUBRECIPIENT under this Agreement may not be obligated or expended by the SUBRECIPIENT following such date of termination. Any funds allocated to the SUBRECIPIENT under this Agreement which remain unobligated or unspent following such date of termination shall automatically revert to the RECIPIENT. 12. REVERSION OF ASSETS • Upon expiration or termination of this Agreement, the SUBRECIPIENT shall transfer to the RECIPIENT any MHFA NSP3 funds on hand or in the accounts receivable attributable to the use of MHFA NSP3 funds, including MHFA NSP3 funds provided to the SUBRECIPIENT in the form of a loan. Any real property under the control of the SUBRECIPIENT that was acquired or improved, in whole or in part, using MHFA NSP3 funds in excess of $25,000 shall either be: A. Used to meet one of the national objectives in 24 CFR 570.208 and not used for the general conduct of government until: (1) For units of general local government, five years from the date that the unit of general local government is no longer considered by HUD to be a part of Urban Hennepin County. (2) For any other SUBRECIPIENT, five years after expiration of this Agreement; or B. Not used in accordance with A. above, in which event the SUBRECIPIENT shall pay to the RECIPIENT an amount equal to the current market value of the propertv less any portion of the value attributable to expenditures of non -MHFA NSP3 funds for acquisition of, or improvement to, the property. The payment is program income to the RECIPIENT. No payment is required after the period of time specified in A. above. • 13. AFFORDABILITY PERIOD 5 For homeownership properties, the RECIPIENT has chosen to use the Qualifications as • Affordable Housing: Homeownership requirements found in the HOME Investment Partnerships Program (HOME) at §92.254. This section of the HOME regulations includes the required use of a RESALE or RECAPTURE provision. One of the two provisions must be applied and secured using financing documents or a land covenant. The appropriate document will be filed at the close of the financing with the buyer. If rental properties are completed, the RECIPIENT has chosen to use the Qualifications as Affordable Housing: Rental Housing requirements found in the HOME regulations at §92.252. The affordability requirements will be secured using financing documents and a land covenant filed at the close of the financing. At a minimum, the term of loans will be based on periods of affordability in the table below, as required in §92.252 and §92.254. Rental and Homeownership assistance NSP3 Loan Term NSP3 amount per -unit Under $15,000 5 $15 to $40,000 10 Over $40,000 15 New Construction Rental 20 14. PROCUREMENT • The SUBRECIPIENT shall be responsible for procurement of all supplies, equipment, services, and construction necessary for implementation of its activities. As applicable, procurement shall be carried out in accordance with the "Common Rule" Administrative Requirements in 24 CFR 85 and all provisions of the CDBG Regulations in 24 CFR 570 (the most restrictive of which will take precedence). The SUBRECIPIENT shall prepare, or cause to be prepared, all advertisements, negotiations, notices, and documents, enter into all contracts, and conduct all meetings, conferences, and interviews as necessary to ensure compliance with the above described procurement requirements. The RECIPIENT shall provide advice and staff assistance to the SUBRECIPIENT to carry out its MHFA NSP3- funded activities. 15. ACQUISITION, RELOCATION, AND DISPLACEMENT A. The SUBRECIPIENT shall be responsible for carrying out all acquisitions of real property necessary for implementation of the activities. The SUBRECIPIENT shall conduct all such acquisitions in its name, or in the name of any of its public, governmental, nonprofit agencies as authorized by its governing body, which shall hold title to all real property purchased. The SUBRECIPIENT shall comply with requirements under the Uniform Relocation Assistance and Real Property Acquisition Act of 1970 (URA) (49 CFR Part 24), except where it conflicts with section 2301(d)(1) or any other section of THE ACT, in which case THE ACT requirements shall prevail over the URA for purposes of MHFA NSP3- assisted acquisitions of foreclosed -upon homes or residential properties. The RECIPIENT • shall provide advice and staff assistance to the SUBRECIPIENT to carry out its 6 MHFA NSP3- funded activities. • B. The SUBRECIPIENT shall comply with the acquisition and relocation requirements of the URA as required under 24 CFR 570.606(a) and HUD implementing regulations at 24 CFR 42; the requirements in 24 CFR 570.606(b) governing the residential antidisplacement and relocation assistance plan under section 104(d) (note exception in next paragraph) of the Housing and Community Development Act of 1974; the relocation requirements of 24 CFR 570.606(c) governing displacement subject to section 104(k) of the Act; and the requirements of 24 CFR 570.606(d) governing optional relocation assistance under section 105(a)(11) of the Act. As an exception under THE ACT to URA requirements set forth in 42 U.S.C. 5304(d)(2), as implemented at 24 CFR42.375, the SUBRECIPIENT will not be required to meet the requirements for one - for -one replacement of low and moderate income dwelling units demolished or converted in connection with activities assisted with MHFA NSP3 funds. 16. ENVIRONMENTAL REVIEW The RECIPIENT shall determine the level of environmental review required under 24 CFR Part 58 and maintain the environmental review record on all activities. The SUBRECIPIENT shall be responsible for providing necessary information, relevant documents, and public notices to the RECIPIENT to accomplish this task. A release from the RECIPIENT must be received by the SUBRECIPIENT, prior to closing on a property for it to be eligible. 17. LABOR STANDARDS, EMPLOYMENT, AND CONTRACTING When applicable, the RECIPIENT shall be responsible for the preparation of all requests for HUD for wage rate determinations on MHFA NSP3 activities undertaken by the SUBRECIPIENT. The SUBRECIPIENT shall notify the RECIPIENT prior to initiating any activity, including advertising for contractual services which will include costs likely to be subject to the provisions on Federal Labor Standards and Equal Employment Opportunity and related implementing regulations. The RECIPIENT will provide technical assistance to the SUBRECIPIENT to ensure compliance with these requirements. No MHFA NSP3 funds shall be used directly or indirectly to employ, award contracts to, or otherwise engage the services of, or fund any contractor or SUBRECIPIENT during any period of debarment, suspension, or placement in ineligibility status under the provisions of 24 CFR Part 24. Prior to awarding a contract the SUBRECIPIENT shall promptly notify the RECIPIENT. The RECIPIENT shall be responsible for determining the status of the contractor under this requirement, and shall notify SUBRECIPIENT if the contractor is or is not prohibited from doing business with the Federal government as a result of debarment or suspension proceedings. 18. PROGRAM INCOME • 7 If the SUBRECIPIENT generated any program income, as defined in 24 CFR 570.500(a), as a result of the expenditure of MHFA NSP3 funds, the provisions of 24 CFR 570.504 • shall apply, except as modified under Title III Division B of THE ACT and any subsequent amendments or in guidance provided by HUD or RECIPIENT, as well as the following specific stipulations: A. The SUBRECIPIENT will notify the RECIPIENT of any program income within ten (10) days of the date such program income is generated. When program income is generated by an activity only partially assisted with MHFA NSP3 funds, the income shall be prorated to reflect the percentage of MHFA NSP3 funds used. B. On a form to be provided by the RECIPIENT, the SUBRECIPIENT will document amounts received as program income are properly determined, calculated and supported. The RECIPIENT will subsequently review and verify documentation to assure Federal requirements are met. C. Any such program income must be paid to the RECIPIENT by the SUBRECIPIENT as soon as practicable after such program income is generated unless the SUBRECIPIENT is permitted to retain program income. D. Program income returned to the RECIPIENT shall be credited to the grant authority of SUBRECIPIENT, whose project generated the program income, and shall be used for fundable and eligible MHFA NSP3 activities consistent with this Agreement. E. The SUBRECIPIENT further recognizes that the RECIPIENT has the responsibility for monitoring and reporting to Minnesota Housing Finance Agency on the use of • any such. program income. The responsibility for appropriate record keeping by the SUBRECIPIENT and reporting to the RECIPIENT by the SUBRECIPIENT on the use of such program income is hereby recognized by the SUBRECIPIENT. The RECIPIENT agrees to provide technical assistance to the SUBRECIPIENT in establishing an appropriate and proper record - keeping and reporting system, as required by Minnesota Housing Finance Agency or HUD. F. In the event of close -out or change in status of the SUBRECIPIENT, any program income that is on hand or received subsequent to the close -out or change in status shall be paid to RECIPIENT as soon as practicable after the income is received. The RECIPIENT agrees to notify the SUBRECIPIENT, should closeout or change in status of the SUBRECIPIENT occur. G. RECIPIENT reserves the right to subtract the HUD allowed amount of Ten (10), percent from any program income it receives from the SUBRECIPIENT to be used for general administration of MHFA NSP3. 19. USE OF REAL PROPERTY The following standards shall apply to real property under the control of the SUBRECIPIENT that was acquired or improved, in whole or in part, using MHFA NSP3 funds: A. The SUBRECIPIENT shall use the real property for single family property. The SUBRECIPIENT must inform and receive permission from the RECIPIENT at least • 8 thirty (30) days prior to any modification or change in the use of the real property • from that planned at the time of acquisition or improvements, including disposition. The SUBRECIPIENT will comply with the requirements of 24 CFR 570.505 to provide affected citizens the opportunity to comment on any proposed change and to consult with affected citizens. B. If any modification or change in the use of the real property is approved by the RECIPIENT, the SUBRECIPIENT shall reimburse the RECIPIENT in an amount equal to the current fair market value (less any portion thereof attributable to expenditures of non - MHFA NSP3 funds) of property acquired or improved with MHFA NSP3 funds that is sold or transferred for a use which does not qualify under MHFA NSP3 requirements. Said reimbursement shall be provided to the RECIPIENT at the time of sale or transfer of the property referenced herein. Such reimbursement shall not be required if the conditions of 24 CFR 570.503(b)(8)(i) (Reversion of Assets) are met and satisfied. Fair market value shall be established by a current written appraisal by a qualified appraiser. The RECIPIENT will have the option of requiring a second appraisal after review of the initial appraisal C. Any program income generated from the disposition or transfer of real property prior to or subsequent to the close -out, change of status or termination of the Agreement between the RECIPIENT and the SUBRECIPIENT shall be repaid to the RECIPIENT at the time of disposition or transfer of the property. 20. ADMINISTRATIVE REQUIREMENTS • The uniform administrative requirements delineated in 24 CFR 570.502 and any and all administrative requirements or guidelines promulgated by the RECIPIENT shall apply to all activities undertaken by the SUBRECIPIENT provided for in this Agreement and to any program income generated therefrom. 21. AFFIRMATIVE ACTION AND EQUAL OPPORTUNITY A. During the performance of this Agreement, the SUBRECIPIENT agrees to the following: In accordance with the Hennepin County Affirmative Action Policy and the Hennepin County Commissioners' Policies Against Discrimination, no person shall be excluded from full employment rights or participation in, or the benefits of, any program, service or activity on.the grounds of race, color, creed, religion, age, sex, disability, marital status, sexual orientation, public assistance status, or national origin; and no person who is protected by applicable federal or state laws against discrimination shall be otherwise subjected to discrimination. B. The SUBRECIPIENT will furnish all information and reports required to comply with the provisions of 24 CFR Part 570 and all applicable state and federal laws, rules, and regulations pertaining to discrimination and equal opportunity. 22. NON - DISCRIMINATION BASED ON DISABILITY A. The SUBRECIPIENT shall comply with Section 504 of the Rehabilitation Act of 1973, as amended, to ensure that no otherwise qualified individual with a handicap; as defined in Section 504, shall, solely by reason of his or her handicap, be • excluded from participation in, be denied the benefits of, or be subjected to 9 discrimination by the SUBRECIPIENT receiving assistance from the RECIPIENT under Section 106 and /or Section 108 of the Housing and Community Development • Act of 1974, as amended. B. When and where applicable, the SUBRECIPIENT shall comply with, and make best efforts to have its third party providers comply with, Public Law 101 -336 Americans With Disabilities Act of 1990, Title I "Employment," Title 11 "Public Services" - Subtitle A, and Title III 'Public Accommodations and Services Operated By Private Entities" and all ensuing federal regulations implementing said Act. 23. LEAD -BASED PAINT The SUBRECIPIENT shall comply with the Lead -Based Paint notification, inspection, testing and abatement procedures established in 24 CFR Part 35 as referenced in 24 CFR Part 570.608. 24. FAIR HOUSING To assure compliance with requirements of section 104(b) and section 109 of Title I of the Housing and Community Development Act of 1974, as amended, including Title VI of the Civil Rights Act of 1964, the Fair Housing Act, and other applicable laws, by signing the certification in Exhibit 3 SUBRECIPIENT certifies that it will affirmatively further fair housing within its jurisdiction. Should HUD make a determination that the SUBRECIPIENT has not affirmatively furthered fair housing or has impeded action by the RECIPIENT to comply with its fair housing certification, the RECIPIENT shall exercise its authority, as contained in the Joint Cooperation Agreement, to prohibit the SUBRECIPIENT from • receiving HUD funding for any activities until the violation has been remedied. 25. AFFIRMATIVE MARKETING The SUBRECIPIENT hereby covenants and agrees that it shall comply with the Hennepin County Affirmative Marketing Policy attached hereto as EXHIBIT 4. SUBRECIPIENT will submit for approval to RECIPIENT an affirmative market plan to ensure affirmative marketing of all MHFA NSP3- assisted units for the duration of this Agreement. 26. INCOME ELIGIBILITY SUBRECIPIENT agrees that all MHFA NSP3 funds appropriated or otherwise made available by RECIPIENT shall be used to house individuals and families whose income does not exceed 120 percent of area median income. Further, SUBRECIPIENT agrees that a minimum of $206,000 made available by RECIPIENT under this agreement shall be used to house individuals or families whose incomes do not exceed 50 percent of area median income. 27. PURCHASE DISCOUNT SUBRECIPIENT agrees that each "foreclosed -upon home or residential property", as defined in the NSP regulations, shall be purchased at a discount of at least one percent from the current market- appraised value of the home or property. The current market appraised value will be determined by an appraisal ordered by the RECIPIENT. • 10 28. VICINITY HIRING • SUBRECIPIENT shall take the appropriate actions to provide for the hiring of employees who reside in the vicinity or contract with small businesses that are owned and operated by persons residing in the vicinity of projects funded with MHFA NSP3 funds, to the maximum extent feasible. Specifically, SUBRECIPIENT shall • Provide community outreach via city newsletters, etc; • Advertise, identify and select qualified developers from inside the target area, when possible; • Require developers to identify and solicit bids from qualified contractors from the target area, when possible; • Require contractors to hire qualified job applicants from inside the target area, when available Vicinity for this Agreement is the target area(s) listed on EXHIBIT 1. 29. LOBBYING A. No federal appropriated funds have been paid or will be paid, by or on behalf of the SUBRECIPIENT, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal Grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract rant loan or cooperative agreement. ,g p g B. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, Loan, or cooperative agreement SUBRECIPIENT will complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. 30. USE OF EXCESSIVE FORCE BY LAW ENFORCEMENT AGENCIES SUBRECIPIENT has adopted and is enforcing a policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in non - violent civil rights demonstrations; and a policy of enforcing applicable state and local laws against physically barring entrance to or exit from a facility or location which is the g subject of such non- violent civil rights demonstrations within its jurisdiction. 1 31. OTHER CDBG and NSP3 POLICIES The SUBRECIPIENT shall comply with the applicable section of 24 CFR 570.200, particularly sections (b) (Special Policies Governing Facilities); (c) (Special Assessments); (f) (Means of Carrying Out Eligible Activities); and (j) (Constitutional prohibitions Concerning Church /State Activities), Section 1497 of the Wall Street Reform and Consumer Protection Act of 2010 (Pub. L. 111 -203, approved July 21, 2010) ( "Dodd- 11 Frank Act "), title XII of the Division A of the American Recovery and Reinvestment Act of • 2009 (Pub. L. 111 -5, approved February 17, 2009) ( "Recovery Act "), and Sections 2301 — 2304 of the Housing and Economic Recovery Act of 2008 (Pub. L. 110 -289, approved July 30, 2008) ( "HERA "). 32. MINNESOTA HOUSING NSP3 POLICIES The SUBRECIPIENT shall comply with all MHFA NSP3 program guidelines and requirements contained in the Minnesota Housing NSP1 and NSP3 Program Procedural Manual, which may be updated from time to time and is available at www.mnhousing.gov, which is attached hereto by reference. 33. CONSTRUCTION AND REHABILITATION STANDARDS SUBRECIPIENT shall comply with the Hennepin Housing Consortium HOME Investment Partnerships Program Construction and Rehabilitation Standards attached hereto as EXHIBIT 5. 34. TECHNICAL ASSISTANCE The RECIPIENT agrees to provide technical assistance to the SUBRECIPIENT in the form of oral and /or written guidance and on -site assistance regarding MHFA NSP3 procedures and project management. This assistance will be provided as requested by the SUBRECIPIENT and at other times at the initiative of the RECIPIENT when new or updated information concerning the MHFA NSP3 Program is received by the RECIPIENT and deemed necessary to be provided to the SUBRECIPIENT. • 35. RECORD- KEEPING The SUBRECIPIENT shall maintain records of the receipt and expenditure of all MHFA NSP3 funds, such records to be maintained in accordance with OMB Circulars A -87 and the "Common Rule" Administrative Requirements in 24 CFR 85 and in accordance with OMB Circular A -110 and A -122, as applicable. All records shall be made available upon request of the RECIPIENT for inspection /s and audit/s by the RECIPIENT or its representatives, Minnesota Housing Finance Agency or HUD. If a financial audit/s determines that the SUBRECIPIENT has improperly expended MHFA NSP3 funds, resulting in the Minnesota Housing Finance Agency or HUD disallowing such expenditures, the RECIPIENT reserves the right to recover from the SUBRECIPIENT such disallowed expenditures from non -MHFA NSP3 sources. Audit procedures are specified below in Section 37 of this Agreement. 36. ACCESS TO RECORDS The RECIPIENT shall have authority to review any and all procedures and all materials, notices, documents, etc., prepared by the SUBRECIPIENT in implementation of this Agreement, and the SUBRECIPIENT agrees to provide all information required by any person authorized by the RECIPIENT to request such information from the SUBRECIPIENT for the purpose of reviewing the same. 37. AUDIT • 12 The SUBRECIPIENT agrees to provide RECIPIENT with an annual audit consistent with • the Single Audit Act of 1996, and the implementing requirements of OMB Circular A -133 "Audits of States, Local Governments and Non - Profit Institutions." A. The SUBRECIPIENT agrees to provide RECIPIENT with an annual audit consistent with the requirements as stated in the first paragraph of this section above. The audit shall be completed and submitted to RECIPIENT within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. B. RECIPIENT will issue a management decision on audit findings within six months after receipt of the audit report and ensure that the RECIPIENT takes appropriate and timely corrective action. C. In those instances where less than $500,000 in assistance is expended from all Federal sources in any one fiscal year, and a single audit is not required, the RECIPIENT requests the following information within the same timeframe as in A., above: (1) annual financial statements, (2) independent auditor's report on internal control over financial reporting based on an audit of financial statements performed in accordance with government auditing standards, and (3) the Management Letter. D. The cost of the audit is not reimbursable from MHFA NSP3 funds. E. The RECIPIENT reserves the right to recover from the SUBRECIPIENT'S non- MHFA NSP3 funds any MHFA NSP3 expenses which are disallowed by an audit. • 38. CERTIFICATIONS To conform with changes under Section 1497 of the Wall Street Reform and Consumer Protection Act of 2010 (Pub. L. 111 -203, approved July 21, 2010) ( "Dodd -Frank Act "), title XII of the Division A of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111 -5, approved February 17, 20Q9) ( "Recovery Act "), and Sections 2301 — 2304 of the Housing and Economic Recovery Act of 2008 (Pub. L. 110 -289, approved July 30, 2008) ( "HERA" ), an alternative set of certifications to those contained in the current Consolidated Action Plan, as amended, is required. The alternative certifications are tailored to MHFA NSP3 grants and remove certifications and references that are appropriate only to the annual CDBG formula program. By signing EXHIBIT 3 the SUBRECIPIENT certifies it will utilize MHFA NSP3 funds provided by RECIPIENT in compliance with these requirements identified. 39. WITHHOLDING For state funding awarded to the RECIPIENT and passed- through to the SUBRECIPIENT, the SUBRECIPIENT must comply with Minnesota Statutes, Section 290.9705 by either: A. Depositing with the State, 8 percent of every payment made to non- Minnesota construction contractors, where the contract exceeds $100,000; or B. Receiving a waiver from this requirement from the Minnesota Department of Revenue. 40. SPECIAL ASSESSMENTS 13 MHFA NSP3 funds may not be used to pay any part of special assessments, except as authorized by the Act and ANY subsequent notice from HUD, and approved by the • RECIPIENT. 41. WORKERS COMPENSATION For MHFA NSP3 funding awarded to the RECIPIENT and passed- through to the SUBRECIPIENT, the SUBRECIPIENT certifies that it is in compliance with Minnesota Statute 176.181 Subd.02, pertaining to worker's compensation insurance coverage. The SUBRECIPIENT'S employers and agents will not be considered state employees. Any claims that may arise under the Minnesota Worker's Compensation Act on behalf of these employees and any claims made by any third party as a consequence of any act or omission on the part of these employees are in no way the State's obligation or responsibility. 42. GOVERNING LAW, JURISDICTION AND VENUE For MHFA NSP3 funding awarded to the RECIPIENT and passed- through to the SUBRECIPIENT; Minnesota law, without regard to its choice for law provisions, governs this grant contract. Venue for all legal proceedings out of this grant contract, or its breach, must be in the appropriate State or Federal court with competent jurisdiction in Hennepin County, Minnesota. 43. TENANT PROTECTIONS SUBRECIPIENT shall ensure that it and its subrecipients comply with tenant protections • specified in Division A, Title XII of the American Recovery and Reinvestment Act of 2009 (PL 111 -5) under the heading "Community Planning and Development Community Development Fund." 44. OPINION OF COUNSEL The undersigned, on behalf of the Hennepin County Attorney, having reviewed this Agreement, hereby opines that the terms and provisions of the Agreement are fully authorized under State and local law and that the SUBRECIPIENT has full legal authority to undertake or assist in undertaking essential community development and housing assistance activities, specifically urban renewal and publicly- assisted housing. Assistant County Attorney 14 • RECIPIENT EXECUTION The Hennepin County Board of Commissioners having duly approved this Agreement on 2011 pursuant to Resolution No. , and the proper County officials having signed this Agreement, the RECIPIENT agrees to be bound by the provisions herein set forth. Approved as to form COUNTY OF HENNEPIN and execution STATE OF MINNESOTA By: Assistant County Attorney Chair of Its County Board Dater Date: ATTEST: Deputy Clerk of County Board Date: And: Assistant/Deputy /County Administrator Date: And: Assistant County Administrator Public Works Date: Recommended for Approval: Department Director, Housing, Community Works and Transit Date 15 SUBRECIPIENT EXECUTION • SUBRECIPIENT, having signed this Agreement and the SUBRECIPIENT'S governing body having authorized such approval and the proper city official having signed this Agreement, SUBRECIPIENT agrees to be bound by the provisions of this Agreement. By entering into this Agreement the SUBRECIPIENT certifies that it is not prohibited from doing business with either the federal government or the State of Minnesota as a result of debarment or suspension proceedings. SUBRECIPIENT: CITY OF BROOKLYN CENTER (Place city seal here) By: Its: And: Its: . Attest: Title: Date: CITY MUST CHECK ONE: The City is organized pursuant to: ❑ Plan A ❑ Plan B ❑ Charter • 16 EXHIBIT 1 BUDGET, ACTIVITY and TARGET AREA DESCRIPTION Activity Number 1 -120% AM Households Activity Name 9.0 Neighborhood Revitalization — MHFA NS1 Select all that apply: ❑ I Eligible Use A: Financing Mechanisms Uses ❑ Eligible Use B: Acquisition and Rehabilitation ❑ Eligible Use C: Land Banking ❑ Eligible Use D: Demolition ® Eligible Use E: Redevelopment 24 CFR 570.201 (a) Acquisition, (b) Disposition, (c) Public facilities and improvements, (e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties, CDBG Activity or (i) Relocation, and Activities (n) Direct homeownership assistance (as modified below). 24 CFR 570.202 Eligible rehabilitation and preservation activities for demolished or vacant properties. 24 CFR 570.204 Community based development organizations. Any of the activities listed above may include required homebuyer counseling as an activity delivery cost. New construction of housing is eligible as part of the redevelopment of demolished or vacant properties. National Objective Low Moderate Middle Income Housing (LMMH) TARGET AREA Description Census Tract 206.00 Block Group 1 and 2 Source of Funding Dollar Amount Budget MHFA NSP3 $384,500 (Other funding source) $0.00 (Other funding source) $0.00 Total Budget for Activity $384,500 Performance Measures The County, city partners or developers will acquire and redevelop seven (7) single family homes. • EXHIBIT 1 - Page 1 Activity Number 2 — 50% AMI Households Activity Name 9.0 Neighborhood Revitalization — MHFA NSP3 Select all that apply: ❑ Eligible Use A: Financing Mechanisms Uses ❑ Eligible Use B: Acquisition and Rehabilitation ❑ Eligible Use C: Land Banking ❑ Eligible Use D: Demolition ® Eligible Use E: Redevelopment 24 CFR 570.201 (a) Acquisition, (b) Disposition, (c) Public facilities and improvements, (e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties, CDBG Activity or (i) Relocation, and Activities (n) Direct homeownership assistance (as modified below). 24 CFR 570.202 Eligible rehabilitation and preservation activities for demolished or vacant properties. 24 CFR 570.204 Community based development organizations. Any of the activities listed above may include required homebuyer counseling as an activity delivery cost. New construction of housing is eligible as part of the redevelopment of demolished or vacant properties. National Objective Low Moderate Middle Income Housing (LMMH) TARGET AREA Description Census Tract 206.00 Block Group 1 and 2 Source of Funding Dollar Amount Budget MHFA NSP3 $103,000 (Other funding source) $0 (Other funding source) $0 Total Budget for Activity $103,000 Performance Measures The County, city partners or developers will acquire and redevelop at least one (1) single family home. • EXHIBIT 1 - Page 2 Activity Number 3 — GENER ADMINISTRATION Activity Name 13.0 Administration -- MHFA NSP' Brooklyn Center Select all that apply: _ ❑ Eligible Use A: Financing Mechanisms Use ❑ Eligible Use B: Acquisition and Rehabilitation ❑ Eligible Use C: Land Banking ❑ Eligible Use D: Demolition ❑ Eligible Use E: Redevelopment CDBG Activity or General Administration of the NSP3 funds Activities National Objective 21A General Admin Location Description Brooklyn Center Source of Funding Dollar Amount Budget NSP3 $12,500 (Other funding source) $0.00 (Other funding source) $0.00 Total Budget for Activity $12,500 Performance Measures I General Admin • • EXHIBIT 1 - Page 3 MHFA NSP3 Brooklyn Center — NSP3 MN Housing Target Area Census Tract 206.00 Block Groups 1 & 2 flA.g 7eerdin s , m Z' 62nd Ave N n -- - Surnny' Dr A( a Li3: r.V.N c Blsl Arent 1 252 m qr 60tt) Aw F: s ? 2. Prrk ¢' u z - 5S:n Ave PI n. '_9tn &to Pl V :Lr a c VI C y S i n n 52 e5U `me N 3 2 F u - z LL _ Pl Ca u , ty RdS Silh Av =_Pl 61 'ryR , 351 ottn nve v J r tn hurl u • • EXHIBIT 2 CERTIFICATIONS FOR STATE AND ENTITLEMENT COMMUNITIES (1) Affirmatively furthering fair housing. The jurisdiction certifies that it will affirmatively further fair housing, which means that it will conduct an analysis to identify impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard. (2) Anti- displacement and relocation plan. The applicant certifies that it has in effect and is following a residential anti- displacement and relocation assistance plan. (3) Anti- lobbying. The jurisdiction must submit a certification with regard to compliance with restrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required by that part. (4) Authority of jurisdiction. The jurisdiction certifies that the consolidated plan or abbreviated plan, as applicable, is authorized under state and local law (as applicable) and that the jurisdiction possesses the legal authority to cant' out the programs for which it is seeking funding, in accordance with applicable HUD regulations and other program requirements. (5) Consistency with plan. The jurisdiction certifies that the housing activities to be undertaken with NSP funds are consistent with its consolidated plan or abbreviated -plan, as applicable. • (6) Acquisition and relocation. The jurisdiction certifies that it will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601), and implementing regulations at 49 CFR part 24, except as those provisions are modified by the notice for the NSP program published by HUD. (7) Section 3. The jurisdiction certifies that it will comply with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701 u), and implementing regulations at 24 CFR part 135. (8) Citizen participation. The jurisdiction certifies that it is in full compliance and following a detailed citizen participation plan that satisfies the requirements of Sections 24 CFR 91.105 or 91.115 as modified b NSP requirements. y q menu. (9) Following a plan. The jurisdiction certifies it is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. [Only States and entitlement jurisdictions use this certification.] (10) Use of funds. The jurisdiction certifies that it will comply with the Dodd -Frank Wall Street Reform and Consumer Protection Act and Title XI of Division A of the American Recovery and Reinvestment Act of 2'009 u spending 50 percent of its grant runds within 2 years, and spending 100 percent within 3 years, of receipt of the grant. (11) The jurisdiction certifies: • a. that all of the NSP funds made available to it will be used with respect to individuals and families whose incomes do not exceed 120 percent of area median income; and EXHIBIT 2 Page 1 b. The jurisdiction will not attempt to recover any capital costs of public improvements • assisted with CDBG funds, including Section 108 loan guaranteed funds, by assessing any amount against properties owned and occupied by persons of low- and moderate- income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if NSP funds are used to pay the proportion of a fee or assessment attributable to the capital costs of public improvements (assisted in part with NSP funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than CDBG funds. In addition, with respect to properties owned and occupied by moderate - income (but not low- income) families, an assessment or charge may made against the property with respect to the public improvements financed by a source other than NSP funds if the jurisdiction certifies that it lacks NSP or CDBG funds to cover the assessment. (12) Excessive force. The jurisdiction certifies that it has adopted and is enforcing: a. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations; and b. A policy of enforcing applicable state and local laws against physically barring entrance to, or exit from, a facility or location that is the subject of such nonviolent civil rights demonstrations within its jurisdiction. (13) Compliance with anti - discrimination laws. The jurisdiction certifies that the NSP grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601- 3619), and implementing regulations. • (14) Compliance with lead -based paint procedures. The jurisdiction certifies that its activities concerning lead -based paint will comply with the requirements of part 35, subparts A, B, J, K, and R of this title. (15) Compliance with laws. The jurisdiction certifies that it will comply with applicable laws. (16) Vicinity hiring. The jurisdiction certifies that it will, to the maximum extent feasible, provide for hiring of employees that reside in the vicinity of NSP3 funded projects or contract with small businesses that are owned and operated by persons residing in the vicinity of NSP3 projects. (17) Development of affordable rental housing. The jurisdiction certifies that it will be abide by the procedures described in its NSP3 Abbreviated Plan to create preferences for the development of affordable rental housing for properties assisted with NSP3 funds. Signature /Authorized Official Date Title EXHIBIT 2 — Page 2 • EXHIBIT 3 FEDERAL REGISTER NOTICE October 19, 2010 [Docket No. FR- 5447 -N -011 (insert .pdf document in the final version) • EXHIBIT 4 • HENNEPIN HOUSING CONSORTIUM AFFIRMATIVE MARKETING POLICY • Hennepin Housing Consortium HOME Investment Partnerships Program AFFIRMATIVE MARKETING POLICY E4�1W7 WQUSING {lPPUr�TU1417 ' • Affirmative Marketing Policy EXHIBIT 5 • HENNEPIN HOUSING CONSORTIUM CONSTRUCTION AND REHABILITATION STANDARDS Hennepin Housing Consortium • HOME Investment Partnerships Program CONSTRUCTION AND REHABILITATION STANDARDS I GPPURTLIN ➢i l January 2011 Construction & Rehabilitation Standards Hennepin County Agreement All 10415 • SUBRECIPIENT AGREEMENT HENNEPIN COUNTY NEIGHBORHOOD STABILIZATION PROGRAM 3 (HUD NSP3) THIS AGREEMENT made and entered into by and between the COUNTY OF HENNEPIN, STATE OF MINNESOTA, hereinafter referred to as "RECIPIENT," A -2400 Government Center, Minneapolis, Minnesota 55487, and the city of BROOKLYN CENTER, hereinafter referred to as "SUBRECIPIENT," 6301 Shingle Creek Parkway North, Brooklyn Center, Minnesota 55430, said parties to this Agreement each being governmental units of the State of Minnesota, and is made pursuant to Minnesota Statutes, Section 471.59. WITNESSETH WHEREAS, RECIPIENT has received a grant from the U.S. Department of Housing and Urban Development (HUD) of Neighborhood Stabilization Program 3 (HUD NSP3)Yunding under Section 1497 of the Wall Street Reform and Consumer Protection Act of 2010 (Pub. L. 111 -203, approved July 21, 2010) (Dodd -Frank Act or the Act), as amended, for emergency assistance for redevelopment of abandoned and foreclosed homes and residential properties. Unless the Act states otherwise, such grants are to be considered. Community Development Block Grant (CDBG) funds according to the implementing regulations at 24 CFR Part 570 (Catalog of Federal Domestic Assistance (CFDA) number 14.218). The grant program under the Act is commonly referred to as the CDBG Neighborhood Stabilization Program 3 (NSP3): and WHEREAS, RECIPIENT has approved use of $690,250of HUD NSP3 funds by the i SUBRECIPIENT in accordance with the budget attached hereto as for the implementation of eligible and fundable HUD NSP3 activities as set forth in EXHIBIT 1 to this Agreement; and WHEREAS, the SUBRECIPIENT agrees to assume certain responsibilities for the implementation of the approved activities in the approved target areas described in EXHIBIT 1, said responsibilities being specified in part in the Joint Cooperation Agreement effective October 1, 2008, executed between RECIPIENT and the city of Brooklyn Center, and in the Hennepin County Consortium 2010 -2015 Consolidated Plan, as amended, and in the Certifications contained herein as EXHIBIT 2; and WHEREAS, except as otherwise provided in the Act and the October 19, 2010 Federal Register Notice of Formula Allocation and Program Requirements for Neighborhood Stabilization Program Formula Grants with Docket No. FR- 5447 —N -01 (the Notice), attached as EXHIBIT 3, statutory and regulatory provisions governing the CDBG Program, as applicable, shall apply to the use of HUD NSP3 funds. NOW, THEREFORE, the parties do hereby agree as follows: 1. SCOPE OF SERVICES A. Except as described in the Notice statutory and regulatory provisions governing the CDBG Program, including those at 24 CFR Part 570 Subparts A, C, D, J, K, and O, as appropriate, shall apply to the use of HUD NSP3 funds. The SUBRECIPIENT shall expend all or any part of its HUD NSP3 allocation only on 1 those activities identified in EXHIBIT 1, subject to the requirements of this Agreement and the stipulations and requirements set forth in this Agreement. B. The SUBRECIPIENT shall take all necessary actions, not only to comply with the stipulations as set out in this Agreement, but to comply with any requests by the RECIPIENT in that connection; it being understood that the RECIPIENT is responsible to the U.S. Department of Housing and Urban Development (HUD) for ensuring compliance with such requirements. The SUBRECIPIENT also will promptly notify the RECIPIENT of any changes in the scope or character of the activities which if is implementing. C. At the request of the RECIPIENT, on a form to be provided or approved, the SUBRECIPIENT shall submit a schedule, corresponding to the term of this Agreement, showing milestones for activity implementation and timely expenditure of funds and will provide other information as requested to assure compliance with HUD timeliness requirements. 2. TERM OF AGREEMENT The effective date of this Agreement is April 27, 2011. The Agreement shall expire on March 1.1, 2014. Upon expiration, the SUBRECIPIENT shall relinquish to the RECIPIENT all program funds unexpended and uncommitted, and all accounts receivable attributable to the use of HUD NSP3 funds for the activities described in EXHIBIT 1, as may be amended. • 3. TIMELINESS OF USE OF AND EXPENDITURE OF HUD NSP3 FUNDS No later than October 31, 2012, SUBRECIPIENT agrees to expend at least $184,000 of HUD NSP3 funds to assist households at or below 50 percent of area median income as determined by HUD. No later than March 31, 2013, SUBRECIPIENT agrees to expend a minimum total of $345,125 in HUD NSP3 funds. No later than March 31, 2014, SUBRECIPIENT agrees to expend a minimum total of $690,250 of HUD NSP3 funds, plus any program income generated through the implementation of HUD NSP3 activities. The RECIPIENT may reduce the Grant amount or cancel this Agreement and demand reversion of funds if RECIPIENT determines in its sole discretion that the start and expected completion of the HUD NSP3 Activities is not within the above described timeframe. RECIPIENT will periodically review SUBRECIPIENT'S progress towards expected outcomes and, may reduce or cancel funding for one or all Activities for lack of adequate progress. Adequate progress will be determined by RECIPIENT in its sole discretion. 4. REPORTING If requested, on a form to be provided or approved by the RECIPIENT, SUBRECIPIENT shall submit a quarterly performance report no later than 15 days following the end of 2 each quarter, beginning 15 days after the completion of the first full calendar quarter after • ` the effective date of this Agreement and continuing until all HUD NSP3 funds (including program income) have been expended and those expenditures are included in a report to HUD. 5. THIRD PARTY AGREEMENTS The SUBRECIPIENT may subcontract this Agreement and /or the services to be performed hereunder, whether in whole or in part, only with the prior consent of the RECIPIENT and only through a written THIRD PARTY or DEVELOPER Agreement acceptable to the RECIPIENT. The SUBRECIPIENT shall not otherwise assign, transfer, or pledge this Agreement and /or the services to be performed hereunder, whether in whole or in part, without the prior consent of the RECIPIENT. 6. AMENDMENTS TO AGREEMENT Any material alterations, variations, modifications or waivers of provisions of this Agreement shall only be valid when reduced to writing as an amendment to this Agreement signed, approved, and properly executed by the authorized representatives of the parties. Any amendments to the approved activities, budgets or target area in EXHIBIT 1, which note Y ice b the SUBRECIPIENT and constitute a substantial amendment will require public ublic an opportunity for public comment for 15 days prior to action on the proposed amendment by the Hennepin County Board of Commissioners. A substantial amendment is defined in and must follow the process described in Citizen Participation Plan, which is Appendix B • of the 2010 -2014 Consolidated Plan for the Hennepin County Consortium. In order to ensure that all HUD NSP3 funds are expended as required, changes that are not substantial, will be coordinated by County staff subject to the review and approval of the Manager of Housing Development and Finance and the Director of Housing, Community Works and Transit. 7. PAYMENT OF HUD NSP3 FUNDS A The RECIPIENT agrees to provide the SUBRECIPIENT with HUD NSP3 funds not to exceed the Hennepin County authorized budget to enable the SUBRECIPIENT to carry out its NSP3 - eligible activities as described in EXHIBIT 1. It is understood that the RECIPIENT shall be held accountable to HUD for the lawful expenditure of HUD NSP3 funds under this Agreement. The RECIPIENT shall therefore make no payment of HUD NSP3 funds to the SUBRECIPIENT and draw no funds from HUD on behalf of a SUBRECIPIENT activity, prior to having received a request for reimbursement for expenses incurred from the SUBRECIPIENT on a form to be provided by the RECIPIENT. In addition to the request form, SUBRECIPIENT shall provide copies of all documents and records needed to ensure that the SUBRECIPIENT has complied with the appropriate regulations and requirements. The RECIPIENT will provide reimbursement within 30 days of receipt and approval of all documents required under this section. 8. INDEMNITY AND INSURANCE A. The SUBRECIPIENT does hereby agree to defend, indemnify, and hold harmless • 3 the RECIPIENT, its elected officials, officers, agents, volunteers and employees . from and against all costs, expenses, claims, suits or judgments arising from or growing out of any injuries, loss or damage sustained by any person or corporation, of SUBRECIPIENT and property including p Y of SUBRECIPIENT, which 9 p are caused by or sustained in connection with the tasks carried out by the SUBRECIPIENT under this Agreement. B. In order to protect SUBRECIPIENT and RECIPIENT from liability and to effectuate the indemnification provisions hereinabove, each SUBRECIPIENT that is not self - insured agrees that during the term of this Agreement it will carry a single limit or combined limit or excess umbrella commercial general liability policy in an amount equal to, but shall not be required to carry coverage in excess of, claim limits specified in Minnesota Statutes Section 466.04, as amended. C. This section shall in no way be intended by the parties hereto as a waiver of the liability limits specified in Minnesota Statutes Section 466.04, as amended. 9. CONFLICT OF INTEREST A. In the procurement of supplies, equipment, construction, and services by the 'c of interest the. conflict provisions in 24 CFR 85.36 and OMB SUBRECIPIENT, p Circular A -110 shall apply. pp . Y B. In all other cases the SUBRECIPIENT shall comply with the conflict of interest provisions of Minnesota Statutes Sections 471.87- 471.88, and subpart K of 24 CFR 570.611. • 10. DATA PRIVACY The SUBRECIPIENT agrees to abide by the provisions of the Minnesota Government Data Practices Act and all other applicable state and federal laws, rules, and regulations relating to data privacy or confidentiality, and as any of the same may be amended. The SUBRECIPIENT agrees to defend, indemnify and hold the RECIPIENT, its elected officials, officers, agents, volunteers and employees harmless from any claims resulting from the SUBRECIPIENT'S unlawful disclosure and /or use of such protected data. 11. SUSPENSION OR TERMINATION A. If the SUBRECIPIENT materially fails to comply with any term of this Agreement or so fails to administer the work as to endanger the performance of this Agreement, this shall constitute noncompliance and default. Unless the SUBRECIPIENT'S default is excused by the RECIPIENT, the RECIPIENT may take one or more of the actions prescribed in 24 CFR 85.43, including the option of immediately canceling this Agreement in its entirety. B. The RECIPIENT'S failure to insist upon strict performance of any provision or to exercise any right under this Agreement shall not be deemed a relinquishment or waiver of the same. Such consent shall not constitute a general waiver or relinquishment throughout the entire term of the Agreement. • C. This Agreement may not be terminated or withdrawn without cause by either party while this Agreement remains in effect. 4 D. HUD NSP3 funds allocated to the SUBRECIPIENT under this Agreement may not • be obligated or expended by the SUBRECIPIENT following such date of termination. Any funds allocated to the SUBRECIPIENT under this Agreement which remain unobligated or unspent following such date of termination shall automatically revert to the RECIPIENT. 12. REVERSION OF ASSETS Upon expiration or termination of this Agreement, the SUBRECIPIENT shall transfer to the RECIPIENT any HUD NSP3 funds on hand or in the accounts receivable attributable to the use of HUD NSP3 funds, including HUD NSP3 funds provided to the SUBRECIPIENT in the form of a loan. Any real property under the control of the SUBRECIPIENT that was acquired or improved, in whole or in part, using HUD NSP3 funds in excess of $25,000 shall either be: A. Used to meet one of the national objectives in 24 CFR 570.208 and not used for the general conduct of government until: (1) For units of general local government, five years from the date that the unit of general local government is no longer considered b g g g Y HUD to be a part of Urban Hennepin County. (2) For any other SUBRECIPIENT, five years after expiration of this Agreement; or B. Not used in accordance with A. above, in which event the SUBRECIPIENT shall pay • to the RECIPIENT an amount equal to the current market value of the property less any portion of the value attributable to expenditures of non -HUD NSP3 funds for acquisition of, or improvement to, the property. The payment is program income to the RECIPIENT. No payment is required after the period of time specified in A. above. 13. AFFORDABILITY PERIOD For homeownership properties, the RECIPIENT has chosen to use the Qualifications, as Affordable Housing: Homeownership requirements found in the HOME Investment Partnerships Program (HOME) at §92.254. This section of the HOME regulations includes the required use of a RESALE or RECAPTURE provision. One of the two provisions must be applied and secured using financing documents or a land covenant. The appropriate document will be filed at the close of the financing with the buyer. If rental properties are completed, the RECIPIENT has chosen to use the Qualifications as Affordable Housing: Rental Housing requirements found in the HOME regulations at will be secured using financing .252. The affordability requirements 9 documents and a § Y g land covenant filed at the close of the financing. At a minimum, the term of loans will be based on periods of affordability in the table below, as required in §92.252 and §92.254. 5 I M Rental and Homeownership assistance NSP3 Loan Term NSP3 amount per -unit Under $15,000 5 $15,000 to $40,000 10 Over $40,000 15 New Construction Renta 20 14. PROCUREMENT The SUBRECIPIENT shall be responsible for procurement of all supplies, equipment, services, and construction necessary for implementation of its activities. As applicable, procurement shall be carried out in accordance with the "Common Rule" Administrative Requirements in 24 CFR 85 and all provisions of the CDBG Regulations in 24 CFR 570 (the most restrictive of which will take precedence). The SUBRECIPIENT shall prepare, or cause to be prepared, all advertisements, negotiations, notices, and documents, enter into all contracts, and conduct all meetings, conferences, and interviews as necessary to ensure compliance with the above described procurement requirements. The RECIPIENT shall provide advice and staff assistance to the SUBRECIPIENT to carry out its HUD NSP3- funded activities. 15. ACQUISITION RELOCATION, AND DISPLACEMENT A. The SUBRECIPIENT shall be responsible for carrying out all acquisitions of real property necessary for implementation of the activities. The SUBRECIPIENT shall conduct all such acquisitions in its name, or in the name of any of its public, governmental, nonprofit agencies as authorized by its governing body, which shall hold title to all real property purchased. The SUBRECIPIENT shall comply with requirements under the Uniform Relocation Assistance and Real Property Acquisition Act of 1970 (URA) (49 CFR Part 24), except where it conflicts with section 2301(d)(1) or any other section of THE ACT, in which case THE ACT requirements shall prevail over the URA for purposes of HUD NSP3- assisted acquisitions of foreclosed -upon homes or residential properties. The RECIPIENT shall provide advice and staff assistance to the SUBRECIPIENT to carry out its HUD NSP3- funded activities. B. The SUBRECIPIENT shall comply with the acquisition and relocation requirements of the URA as required under 24 CFR 570.606(a) and HUD implementing regulations at 24 CFR 42; the requirements in 24 CFR 570.606(b) governing the residential antidisplacement and relocation assistance plan under section 104(d) (note exception in next paragraph) of the Housing and Community Development Act of 1974; the relocation requirements of 24 CFR 570.606(c) governing displacement subject to section 104(k) of the Act; and the requirements of 24 CFR 570.606(d) governing optional relocation assistance under section 105(a)(11) of the Act. As an exception under THE ACT to URA requirements set forth in 42 U.S.C. 5304(d)(2), as implemented at 24 CFR42.375, the SUBRECIPIENT will not be • required to meet the requirements for one - for -one replacement of low and moderate income dwelling units demolished or converted in connection with activities assisted with HUD NSP3 funds. v 16. ENVIRONMENTAL REVIEW • The RECIPIENT shall determine the level of environmental review required under 24 CFR Part 58 and maintain the environmental review record on all activities. The SUBRECIPIENT shall be responsible for providing necessary information, relevant documents, and public notices to the RECIPIENT to accomplish this task. A release from the RECIPIENT must be received by the SUBRECIPIENT, prior to closing on a property for it to be eligible. 17. LABOR STANDARDS, EMPLOYMENT, AND CONTRACTING When applicable, the RECIPIENT shall be responsible for the preparation of all requests for HUD for wage rate determinations on HUD NSP3 activities undertaken by the SUBRECIPIENT. The SUBRECIPIENT shall notify the RECIPIENT prior to initiating any activity, including advertising for contractual services which will include costs likely to be subject to the provisions on Federal Labor Standards and Equal Employment Opportunity and related implementing regulations. The RECIPIENT will provide technical assistance to the SUBRECIPIENT to ensure compliance with these requirements. No HUD NSP3 funds shall be used directly or indirectly to employ, award contracts to, or otherwise engage the services of, or fund any contractor or SUBRECIPIENT during any period of debarment, suspension, or placement in ineligibility status under the provisions of 24 CFR Part 24. Prior to awarding a contract the SUBRECIPIENT shall promptly notify the RECIPIENT. The RECIPIENT shall be responsible for determining the status, of the contractor under this requirement, and shall notify SUBRECIPIENT if the contractor is or is not prohibited from doing business with the Federal government as a result of debarment or suspension proceedings. 18. PROGRAM INCOME If the SUBRECIPIENT generated any program income, as defined in 24 CFR 570.500(a), as a result of the expenditure of HUD NSP3 funds, the provisions of 24 CFR 570.504 shall apply, except as modified under Title III Division B of THE ACT and any subsequent amendments or in guidance provided by HUD or RECIPIENT, as well as the following specific stipulations: A. The SUBRECIPIENT will notify the RECIPIENT of any program income within ten (10) days of the date such program income is generated. When program income is generated by an activity only partially assisted with HUD NSP3 funds, the income shall be prorated to reflect the percentage of HUD NSP3 funds used. B. On a form to be provided by the RECIPIENT, the SUBRECIPIENT will document amounts received as program income are properly determined, calculated and supported. The RECIPIENT will subsequently review and verify documentation to assure Federal requirements are met. C. Any such program income must be paid to the RECIPIENT by the SUBRECIPIENT as soon as practicable after such program income is generated unless the • SUBRECIPIENT is permitted to retain program income. 7 • D. Program income returned to the RECIPIENT shall be credited to the grant authority of SUBRECIPIENT, whose project generated the program income, and shall be • used for fundable and eligible HUD NSP3 activities consistent with this Agreement. E. The SUBRECIPIENT further recognizes that the RECIPIENT has the responsibility for monitoring and reporting to HUD on the use of any such program income. The responsibility for appropriate record keeping by the SUBRECIPIENT and reporting to the RECIPIENT by the SUBRECIPIENT on the use of such program income is hereby recognized by the SUBRECIPIENT. The RECIPIENT agrees to provide technical assistance to the SUBRECIPIENT in establishing an appropriate and proper record - keeping and reporting system, as required by HUD. F. In the event of close -out or change in status of the SUBRECIPIENT, any program income that is on hand or received subsequent to the close -out or change in status shall be paid to RECIPIENT as soon as practicable after the income is received. The . RECIPIENT agrees to notify the SUBRECIPIENT, should closeout or change in status of the SUBRECIPIENT occur. G. RECIPIENT reserves the right to subtract the HUD allowed amount of Ten (10) percent from any program income it receives from the SUBRECIPIENT to be used for general administration of HUD NSP3. 19. USE OF REAL PROPERTY • to real property The following standards shall appl p p y u nder the control of the whole or in art using HUD NSP3 SUBRECIPIENT that was acquired or improved, in wh g SUBRE q p p funds: A. The SUBRECIPIENT shall use the real property for single family property. The SUBRECIPIENT must inform and receive permission from the RECIPIENT at least thirty (30) days prior to any modification or change in the use of the real property from that planned at the time of acquisition or improvements, including disposition. The SUBRECIPIENT will comply with the requirements of 24 CFR 570.505 to provide affected citizens the opportunity to comment on any proposed change and to consult with affected citizens. B. If any modification or change in the use of the real property is approved by the RECIPIENT, the SUBRECIPIENT shall reimburse the RECIPIENT in an amount equal to the current fair market value (less any portion thereof attributable to expenditures of non - HUD NSP3 funds) of property acquired or improved with HUD NSP3 funds that is sold or transferred for a use which does not qualify under�HUD NSP3 requirements. Said reimbursement shall be provided to the RECIPIENT at the time of sale or transfer of the property referenced herein. Such reimbursement shall not be required if the conditions of 24 CFR 570.503(b)(8)(i) (Reversion of Assets) are met and satisfied. Fair market value shall be established by a current written appraisal by a qualified appraiser. The RECIPIENT will have the option of requiring a second appraisal after review of the initial appraisal. 8 C. Any program income generated from the disposition or transfer of real property prior • to or subsequent to the close -out, change of status or termination of the Agreement between the RECIPIENT and the SUBRECIPIENT shall be repaid to the RECIPIENT at the time of disposition or transfer of the property. 20. ADMINISTRATIVE REQUIREMENTS The uniform administrative requirements delineated in 24 CFR 570.502 and any and all administrative requirements or guidelines promulgated by the RECIPIENT shall apply to all activities undertaken by the SUBRECIPIENT provided for in this Agreement and to any program income generated therefrom. 21. AFFIRMATIVE ACTION AND EQUAL OPPORTUNITY A. During the performance of this Agreement, the SUBRECIPIENT agrees to the following: In accordance with the Hennepin County Affirmative Action Policy and the Hennepin County Commissioners' Policies Against Discrimination, no person shall be excluded from full employment rights or participation in, or the benefits of, any program, service or activity on the grounds of race, color, creed, religion, age, sex, disability, marital status, sexual orientation, public assistance status, or national origin; and no person who is protected by applicable federal or state laws against discrimination shall be otherwise subjected to discrimination. B. The SUBRECIPIENT will furnish all information and reports required to comply with the provisions of 24 CFR Part 570 and all applicable state and federal laws, rules, and regulations pertaining to discrimination and equal opportunity. • 22. NON - DISCRIMINATION BASED ON DISABILITY A. The SUBRECIPIENT shall comply with Section 504 of the Rehabilitation Act of 1973, as amended, to ensure that no otherwise qualified individual with a handicap, as defined in Section 504, shall, solely by reason of his or her handicap, be excluded from participation in, be denied the benefits of, or be subjected to discrimination by the SUBRECIPIENT receiving assistance from the RECIPIENT under Section 106 and/or Section 108 of the Housing and Community Development Act of 1974, as amended. B. When and where applicable, the SUBRECIPIENT shall comply with, and make best efforts to have its third party providers comply with, Public Law 101 -336 Americans With Disabilities Act of 1990, Title I "Employment, Title II "Public Services" - Subtitle A, and Title III "Public Accommodations and Services Operated By Private Entities" and all ensuing federal regulations implementing said Act. 23. LEAD -BASED PAINT The SUBRECIPIENT shall comply with the Lead -Based Paint notification, inspection, testing and abatement procedures established in 24 CFR Part 35 as referenced in 24 CFR Part 570.608. 24. FAIR HOUSING . 9 • To assure compliance with requirements of section 104(b) and section 109 of Title I of the Housing and Community Development Act of 1974, as amended, including Title VI of the Civil Rights Act of 1964, the Fair Housing Act, and other applicable laws, by signing the certification in Exhibit 3 SUBRECIPIENT certifies that it will affirmatively further fair housing within its jurisdiction. Should HUD make a determination that the SUBRECIPIENT has not affirmatively furthered fair housing or has impeded action by the RECIPIENT to comply with its fair housing certification, the RECIPIENT shall exercise its authority, as contained in the Joint Cooperation Agreement, to prohibit the SUBRECIPIENT from receiving HUD funding for any activities until the violation has been remedied. 25. AFFIRMATIVE MARKETING The SUBRECIPIENT hereby covenants and agrees that it shall comply with the Hennepin County Affirmative Marketing Policy attached hereto as EXHIBIT 4. SUBRECIPIENT will submit for approval to RECIPIENT an affirmative market plan to ensure affirmative marketing of all HUD NSP3- assisted units for the duration of this Agreement. 26. INCOME ELIGIBLITY SUBRECIPIENT agrees that all HUD NSP3 funds appropriated or otherwise made available by RECIPIENT shall be used to house individuals and families whose income does not exceed 120 percent of area median income. Further, SUBRECIPIENT agrees that a minimum of $184,000 made available by RECIPIENT under this agreement shall be used to house individuals or families whose incomes do not exceed 50 percent of area . median income. 27. PURCHASE DISCOUNT SUBRECIPIENT agrees that each "foreclosed -upon home or residential property", as defined in the NSP regulations, shall be purchased at a discount of at least one percent from the current market - appraised value of the home or property. The current market appraised value will be determined by an appraisal ordered by the RECIPIENT. 28. VICINITY HIRING SUBRECIPIENT shall take the appropriate actions to provide for the hiring of employees who reside in the vicinity or contract with small businesses that are owned and operated by persons residing in the vicinity of projects funded with HUD NSP3 funds, to the maximum extent feasible. Specifically, SUBRECIPIENT shall • Provide community outreach via city newsletters, etc; • Advertise, identify and select qualified developers from inside the target area, when possible; • Require developers to identify and solicit bids from qualified contractors from the target area, when possible; • Require contractors to hire qualified job applicants from inside the target area, when available Vicinity for this Agreement is the target area(s) listed on EXHIBIT 1. 10 29. LOBBYING • A. No federal appropriated funds have been paid or will be paid, by or on behalf of the SUBRECIPIENT, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal Grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement. B. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement SUBRECIPIENT will complete and submit Standard Form -LLL, "Disclosure Form to Report Lobbying," in accordance with its instructions. 30. USE OF EXCESSIVE FORCE BY LAW ENFORCEMENT AGENCIES SUBRECIPIENT has adopted and is enforcing a policy prohibiting the use of excessive force bylaw enforcement agencies within its jurisdiction against any individuals engaged in non - violent civil rights demonstrations; and a. policy of enforcing applicable state and local laws against physically barring entrance to or exit from a facility or location which is the subject of such non - violent civil rights demonstrations within its jurisdiction. • 31. OTHER CDBG and NSP3 POLICIES The SUBRECIPIENT shall comply with the applicable section of 24 CFR 570.200, particularly sections (b) (Special Policies Governing Facilities); (c) (Special Assessments); (f) (Means of Carrying Out Eligible Activities) and (j) (Constitutional prohibitions Concerning Church /State Activities), Section 1497 of the Wall Street Reform and Consumer Protection Act of 2010 (Pub. L. 111 -203, approved July 21, 2010) ( "Dodd Frank Act "), title XI of the Division A of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111 -5, approved February 17, 2009) ( "Recovery Act "), and Sections 2301 — 2304 of the Housing and Economic Recovery Act of 2008 (Pub. L. 110 -289, approved July 30, 2008) ( "HERA "). 32. MINNESOTA HOUSING NSP3 POLICIES INTENTIONALLY OMITTED 33. CONSTRUCTION AND REHABILITATION STANDARDS SUBRECIPIENT shall comply with the Hennepin Housing Consortium HOME Investment Partnerships Program Construction and Rehabilitation Standards attached hereto as EXHIBIT 5. 34. TECHNICAL ASSISTANCE • 11 • The RECIPIENT agrees to provide technical assistance to the SUBRECIPIENT in the form of oral and /or written guidance and on -site assistance regarding HUD NSP3 procedures and project management. This assistance will be provided as requested by the SUBRECIPIENT and at other times at the initiative of the RECIPIENT when new or updated information concerning the HUD NSP3 Program is received by the RECIPIENT and deemed necessary to be provided to the SUBRECIPIENT. 35. RECORD- KEEPING The SUBRECIPIENT shall maintain records of the receipt and expenditure of all HUD NSP3 funds, such records to be maintained in accordance with OMB Circulars A -87 and the "Common Rule" Administrative Requirements in 24 CFR 85 and in accordance with OMB Circular A -110 and A -122, as applicable. All records shall be made available upon request of the RECIPIENT for inspection /s and audit/s by the RECIPIENT or its representatives, HUD. If a financial audit/s determines that the SUBRECIPIENT has improperly expended HUD NSP3 funds, resulting in HUD disallowing such expenditures, the RECIPIENT reserves the right to recover from the SUBRECIPIENT such disallowed expenditures from non -HUD NSP3 sources. Audit procedures are specified below in Section 37 of this Agreement. 36. ACCESS TO RECORDS The RECIPIENT shall have authority to review any and all procedures and all materials, notices, documents., etc., prepared by the SUBRECIPIENT in implementation of this . Agreement, and the SUBRECIPIENT agrees to provide all information required by any person authorized by the RECIPIENT to request such information from the SUBRECIPIENT for the purpose of reviewing the same. 37. AUDIT The SUBRECIPIENT agrees to provide RECIPIENT with an annual audit consistent with the Single Audit Act of 1996, and the implementing requirements of OMB Circular A -133 "Audits of States, Local Governments and Non- Profit Institutions." A. The SUBRECIPIENT agrees to provide RECIPIENT with an annual audit consistent' with the requirements as stated in the first paragraph of this section above. The audit shall be completed and submitted to RECIPIENT within the earlier of 30 days after receipt of the auditor's report(s), or nine months after the end of the audit period. B. RECIPIENT will issue a management decision on audit findings within six months after receipt of the audit report and ensure that the RECIPIENT takes appropriate and timely corrective action. C. In those instances where less than $500,000 in assistance is expended from all Federal sources in any one fiscal year, and a single audit is not required, the RECIPIENT requests the following information within the same timeframe as in A., above: (1) annual financial statements, (2) independent auditor's report on internal control over financial reporting based on an audit of financial statements performed • in accordance with government auditing standards, and (3) the Management Letter. 12 D. The cost of the audit is not reimbursable from HUD NSP3 funds. • E. The RECIPIENT reserves the right to recover from the SUBRECIPIENT'S non -HUD NSP3 funds any HUD NSP3 expenses which are disallowed by an audit. 38. CERTIFICATIONS To conform with changes under Section 1497 of the Wall Street Reform and Consumer Protection Act of 2010 (Pub. L. 111 -203, approved July 21, 2010) ( "Dodd -Frank Act "), title XII of the Division A of the American Recovery and Reinvestment Act of 2009 (Pub. L. 111 -5, approved February 17, 2009) ( "Recovery Act "), and Sections 2301 — 2304 of the Housing and Economic Recovery Act of 2008 (Pub. L. 110 -289, approved July 30, 2008) ( "HERA "), an alternative set of certifications to those contained in the current Consolidated Action Plan, as amended, is required. The alternative certifications are tailored to HUD NSP3 grants and remove certifications and references that are appropriate only to the annual CDBG formula program. By signing EXHIBIT 3 the SUBRECIPIENT certifies it will utilize HUD NSP3 funds provided by RECIPIENT in compliance with these requirements identified. 39. WITHHOLDING For state funding awarded to the RECIPIENT and passed- through to the SUBRECIPIENT, the SUBRECIPIENT must comply with Minnesota Statutes, Section 290.9705 by either: A. Depositing with the State, 8 percent of every payment made to non - Minnesota • construction contractors, where the contract exceeds $100,000; or B. Receiving a waiver from this requirement from the Minnesota Department of Revenue. 40. SPECIAL ASSESSMENTS HUD NSP3 funds may not be used to pay any part of special assessments, except as authorized by the Act and ANY subsequent notice from HUD, and approved by the RECIPIENT. 41. WORKERS COMPENSATION For HUD NSP3 funding awarded to the RECIPIENT and passed- through to the SUBRECIPIENT, the SUBRECIPIENT certifies tha t it is in compliance with Minnesota Statute 176.181 Subd.02, pertaining to worker's compensation insurance coverage. The SUBRECIPIENT'S employers and agents will not be considered state employees. Any claims that may arise under the Minnesota Worker's Compensation Act on behalf of these employees and any claims made by any third party as a consequence of any act or omission on the part of these employees are in no way the State's obligation or responsibility. 42. GOVERNING LAW JURISDICTION AND VENUE For HUD NSP3 funding awarded to the RECIPIENT and passed- through to the SUBRECIPIENT; Minnesota law, without regard to its choice for law provisions, governs • this grant contract. Venue for all legal proceedings out of this grant contract, or its breach, 13 • must be in the appropriate State or Federal court with competent jurisdiction in Hennepin County, Minnesota. 43. TENANT PROTECTIONS SUBRECIPIENT shall ensure that it and its subrecipients comply with tenant protections specified in Division A, Title XII of the American Recovery and Reinvestment Act of 2009 (PL 111 -5) under the heading "Community Planning and Development Community Development Fund." 44. OPINION OF COUNSEL The undersigned, on behalf of the Hennepin County Attorney, having reviewed this Agreement, hereby opines that the terms and provisions of the Agreement are fully authorized under State and local law and that the SUBRECIPIENT has full legal authority to undertake or assist in undertaking essential community development and housing assistance activities, specifically urban renewal and publicly- assisted housing. Assistant County Attorney • 14 RECIPIENT EXECUTION • The Hennepin County Board of Commissioners having duly approved this Agreement on , 2011 pursuant to Resolution No. and the proper County officials having signed this Agreement, the RECIPIENT agrees to be bound by the provisions herein set forth. Approved as to form COUNTY OF HENNEPIN and execution STATE OF MINNESOTA By: Assistant County Attorney Chair of Its County Board Date: Date: ATTEST: Deputy Clerk of County Board Date: And: Assistant/Deputy /County Administrator Date: • And: Assistant County Administrator Public Works Date: Recommended for Approval: Department Director, Housing, Community Works and Transit Date • 15 • SUBRECIPIENT EXECUTION SUBRECIPIENT, having signed this Agreement and the SUBRECIPIENT'S governing body having authorized such approval and the proper city official having signed this Agreement, SUBRECIPIENT agrees to be bound by the provisions of this Agreement. By entering into this Agreement the SUBRECIPIENT certifies that it is not prohibited from doing business with either the federal government or the State of Minnesota as a result of debarment or suspension proceedings. SUBRECIPIENT: CITY OF BROOKLYN CENTER (Place city seal here) By: Its: And: Its: Attest: Title: Date: CITY MUST CHECK ONE: The City is organized pursuant to: ❑ Plan A ❑ Plan B ❑ Charter • 16 EXHIBIT 1 BUDGET, ACTIVITY and TARGET AREA DESCRIPTION Activity Number 1 -120% AMI Households Activity Name 9.0 Neighborhood Revitalization — HUD NSP3- Select all that apply: ❑ I Eligible Use A: Financing Mechanisms Uses F Eligible Use B: Acquisition and Rehabilitation ❑ Eligible Use C: Land Banking ❑ Eligible Use D: Demolition ® Eligible Use E: Redevelopment 24 CFR 570.201 (a) Acquisition, (b) Disposition, (c) Public facilities and improvements, (e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties, CDBG Activity or (i) Relocation, and Activities (n) Direct homeownership assistance (as modified below). 24 CFR 570.202 Eligible rehabilitation and preservation activities for demolished or vacant properties. 24 CFR 570.204 Community based development organizations. Any of the activities listed above may include required homebuyer counseling as an activity delivery cost. New construction of housing is eligible as part of the redevelopment of demolished or vacant properties. National Objective Low Moderate Middle Income Housing (LMMH) TARGET AREA Census Tract 203.04 Block Groups 1 and 3 Description Census Tract 205.00 Block Group 2 and 3 Source of Funding Dollar Amount Budget HUD NSP3 $506,250 (Other funding source) $0.00 (Other funding source) $0.00 Total Budget for Activity $506,250 Performance Measures The County, city partners or developers will acquire and redevelop eight (8) single family homes. • EXHIBIT 1 - Page 1 • Activity Number 2 — 50% AMI Households Activity Name 9.0 Neighborhood Revitalization —HUD NSP3 MINIKEEK Select all that apply: ❑ Eligible Use A: Financing Mechanisms Uses ❑ Eligible Use B: Acquisition and Rehabilitation ❑ Eligible Use C: Land Banking ❑ Eligible Use D: Demolition ® Eligible Use E: Redevelopment 24 CFR 570.201 (a) Acquisition, (b) Disposition, (c) Public facilities and improvements, (e) Public services for housing counseling, but only to the extent that counseling beneficiaries are limited to prospective purchasers or tenants of the redeveloped properties, CDBG Activity or (i) Relocation, and Activities (n) Direct homeownership assistance (as modified below). 24 CFR 570.202 Eligible rehabilitation and preservation activities for demolished or vacant properties. 24 CFR 570.204 Community based development organizations. • Any of the activities listed above may include required homebuyer counseling as an activity delivery cost. New construction of housing is eligible as part of the redevelopment of demolished or vacant properties. National Objective Low Moderate Middle Income Housing (LMMH) TARGET AREA Census Tract 203.04 Block Groups 1 and 3 Description Census Tract 205.00 Block Group 2 and 3 Source of Funding Dollar Amount Budget HUD NSP3 _ $184,000 (Other funding source) $ (Other funding source) $ Total Budget for Activity $184,000 Performance Measures The County, city partners or developers will acquire and redevelop at least one (1) single family home. EXHIBIT 1 - Page 2 Activity Number 3 — GENERAL ADMINISTRATION Activity Name 13.0 Administration -- HUD NSP3 Select all that apply: ❑ Eligible Use A: Financing Mechanisms ❑ Use Eligible Use B: Acquisition and Rehabilitation ❑ Eligible Use C: Land Banking ❑ Eligible Use D: Demolition ❑ Eligible Use E: Redevelopment CDBG Activity or General Administration of the NSP3 funds Activities National Objective 21A General Admin Location Description Brooklyn Center Source of Funding Dollar Amount NSP3 $12,500 Budget g (Other funding source) $0.00 (Other funding source) $0.00 Total Budget for Activity $12,500 Performance Measures I General Admin EXHIBIT 1 - Page 3 HUD NSP3 \\P3- HUD USER DATA MAPS \ ƒ] } } © / k § & Gr GS-IhAva N z 0 C z 4; \ ) llb i,R I I i Av e'N z �""fY Rd 10 Uas!� Lakc Rd LL N C oUnly Rd 57 57(h An IN ilroc kvievj U r 4 m rL. 0 l iwe 7- E Ericon Or E bIII rwa 14 = m Ave P h Ave N o U 54th Ave N 54th Ave N 61 z 74 KIM P.-I Brooklyn Center Census Tract 205.00 Groups 2 and 3 � � � I R SP3 - HUD USER DATA MAPS 40 D NSP3 < ;¢ « mp Tea -+ � - $ , ƒ ` 4 a ~ # B , . 2 v - _ h* & i _ 05th Alou & . Doe I » G@ 4 . - 2 J 1N r>a $ : . a . . � � . 63,&eN n 5, Alit 6 44 v + a ; r q ^ R»,% / ro yea § 2 _ \ 'kmnmR .ƒ 6 , JJ • -A N - \ ®® ��^ �� ®& < w�2j§ . & _ k erg N / a_�reDr » _ e mn N= $ u ,eeM m } , z ) } § 4 } � a / - . Av e m #¢ . &oo<m Center % Rd m e _ Uk « #1, ¥ 2 Ba 2 % - � G & Rd 10 - B_ Lake R . Brooklyn Center CeslusTract 20y048 lock Groups I and 3 • EXHIBIT 2 CERTIFICATIONS FOR STATE AND ENTITLEMENT COMMUNITIES (1) Affirmatively furthering fair housing. The jurisdiction certifies that it will affirmatively further fair housing, which means that it will conduct an analysis to identify impediments to fair housing choice within the jurisdiction, take appropriate actions to overcome the effects of any impediments identified through that analysis, and maintain records reflecting the analysis and actions in this regard: (2) Anti- displacement and relocation plan. The applicant certifies that it has in effect and is following a residential anti - displacement and relocation assistance plan. (3) Anti - lobbying. The jurisdiction must submit a certification with regard to compliance with restrictions on lobbying required by 24 CFR part 87, together with disclosure forms, if required by that part. (4) Authority of jurisdiction. The jurisdiction certifies that the consolidated plan or abbreviated plan, as applicable, is authorized under state and local law (as applicable) and that the jurisdiction possesses the legal authority to carry out the programs for which it is seeking funding, in accordance with applicable HUD regulations and other program requirements. (5) Consistency with plan. The jurisdiction certifies that the housing activities to be undertaken with NSP funds are consistent with its consolidated plan or abbreviated plan, as applicable. • (6) Acquisition and relocation. The jurisdiction certifies that it will comply with the acquisition and relocation requirements of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (42 U.S.C. 4601), and implementing regulations at 49 CFR part 24, except as those provisions are modified by the notice for the NSP program published by HUD. (7) Section 3. The jurisdiction certifies that it will comply with section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C. 1701 u), and implementing regulations at 24 CFR part 135. (8) Citizen participation. The jurisdiction certifies that it is in full compliance and following a detailed citizen participation plan that satisfies the requirements of Sections 24 CFR 91.105 or 91.115, as modified by NSP requirements. (9) Following a plan. The jurisdiction certifies it is following a current consolidated plan (or Comprehensive Housing Affordability Strategy) that has been approved by HUD. [Only States and entitlement jurisdictions use this certification.] (10) Use of funds. The jurisdiction certifies that it will comply with the Dodd -Frank Wall Street Reform and Consumer Protection Act and Title XI of Division A of the American Recovery and Reinvestment Act of 2009 by spending 50 percent of its grant funds within 2 years, and spending 100 percent within 3 years, of receipt of the grant. (11) The jurisdiction certifies: • a. that all of the NSP funds made available to it will be used with respect to individuals and families whose incomes do not exceed 120 percent of area median income; and EXHIBIT 2 — Page 1 b. The jurisdiction will not attempt to recover any capital costs of public improvements . assisted with CDBG funds, including Section 108 loan guaranteed funds, by assessing any amount against properties owned and occupied by persons of low- and moderate- income, including any fee charged or assessment made as a condition of obtaining access to such public improvements. However, if NSP funds are used to pay the proportion of a fee or assessment attributable to the capital costs of public improvements (assisted in part with NSP funds) financed from other revenue sources, an assessment or charge may be made against the property with respect to the public improvements financed by source other than CDBG funds. In addition, with respect to properties owned and occupied by moderate- income (but not low- income) families, an assessment or charge may be made against the property with respect to the public improvements financed by a source other than NSP funds if the jurisdiction certifies that it lacks NSP or CDBG funds to cover the assessment. (12) Excessive force. The jurisdiction certifies that it has adopted and is enforcing: a. A policy prohibiting the use of excessive force by law enforcement agencies within its jurisdiction against any individuals engaged in nonviolent civil rights demonstrations; and b. A policy of enforcing applicable state and local laws against physically barring entrance to, or exit from, a facility or location that is the subject of such nonviolent civil rights demonstrations within its jurisdiction. (13) Compliance with anti - discrimination laws. The jurisdiction certifies that the NSP grant will be conducted and administered in conformity with Title VI of the Civil Rights Act of 1964 (42 • U.S.C. 2000d), the Fair Housing Act (42 U.S.C. 3601- 3619), and implementing regulations. (14) Compliance with lead -based paint procedures. The jurisdiction certifies that its activities' concerning lead -based paint will comply with the requirements of part 35, subparts A, B, J, K, and R of this title. (15) Compliance with laws. The jurisdiction certifies that it will comply with applicable laws. (16) Vicinity hiring. The jurisdiction certifies that it will, to the maximum extent feasible, provide for hiring of employees that reside in the vicinity of NSP3 funded projects or contract with small businesses that are owned and operated by persons residing in the vicinity of NSP3 projects. (17) Development of affordable rental housing. The jurisdiction certifies that it will be abide by the procedures described in its NSP3 Abbreviated Plan to create preferences for the development of affordable rental housing for properties assisted with NSP3 funds. Signature /Authorized Official Date Title EXHIBIT 2 — Page 2 EXHIBIT 3 FEDERAL REGISTER NOTICE October 19, 2010 [Docket No. FR- 5447 —N -011 (insert .pdf document in the final version) • • EXHIBIT 4 • HENNEPIN HOUSING CONSORTIUM AFFIRMATIVE MARKETING POLICY • Hennepin Housing Consortium HOME Investment Partnerships Program AFFIRMATIVE MARKETING POLICY EC4�+1L 11ftf3:ilh'Cx . �FfktT11P7 €TY • Affirmative Marketing Policy • It is the policy of the Hennepin Housing Consortium, which includes Hennepin County, the City of Bloomington, City of Eden Prairie, the City of Minnetonka and the City of Plymouth, to provide fair housing opportunities regardless of race, color, religion, national origin, sex, familial status, status with regard to receipt of public assistance or disability. The Affirmative Marketing Policy incorporates fair housing marketing practices as addressed in Title VII of the Civil Rights Act of 1968. In order to administer the HOME Program in conformity and to meet the requirements of the regulations at 24 CFR Part 92 92.351, the Hennepin Housing Consortium has established the following guidelines for HOME assisted rental and homebuyer projects: I. Information to Owners, Tenants and Others A. Copies of the Affirmative Marketing Policy and a description of the existing fair housing laws shall be provided to all interested parties, including owners, their agents and tenants. B. All applicable fair housing laws, policies and procedures shall be discussed with and provided to owners and /or their agents to give to applicants as part of the screening process. C. The Equal Housing Opportunity Logo and /or equal opportunity . language shall be included in all media announcements and advertisements, and conspicuously displayed in management offices or other appropriate places. D. Owners and /or their agents, tenants, and others shall be provided with the name and telephone number of a contact person if there are questions or concerns about the Affirmative Marketing Policy or other areas of the HOME Program. A TDD number will also be provided. E. Owners and /or their agents will be encouraged to keep on hand available copies of the Affirmative Marketing Policy to give to tenants or others upon request. F. The Equal Housing Opportunity Logo or language will be used in press releases and solicitations for owners, and written communications to fair housing and other groups. G. The Affirmative Marketing Policy may be published in other languages if it is deemed necessary. II. Special Outreach Owners and /or their agents shall be required to solicit applications for vacant • units from persons in the housing market who are least likely to apply without special outreach efforts. In general, persons who are not of the race /ethnicity Affirmative Marketing Policy Page 1 of the current residents in the neighborhood in which the project is located • shall be considered least likely to apply. Efforts may include, but not be limited to, the use of community organizations, churches, employment centers, housing counseling of referral agencies, the local housing authorities (HRAs), brochures, leaflets, signs, personal contacts, radio, newspapers (including neighborhood, city, and minority /ethnic newspapers or newsletters), local governmental offices, and advocacy or special needs groups. III. Record Keeping A. Owners, and /or their agents shall maintain records of efforts made to affirmatively market units in order to assess their impact. Hennepin County, as Lead Agency for the Consortium, will maintain records. Records shall include information concerning race, ethnicity, gender of applicants and copies of efforts undertaken by Consortium members, owners, and /or their agents to attract tenants and the results of those who apply as well as any referrals received from other sources, i.e., community organizations, radio, newspapers, etc. B. Owners, and /or their agents shall maintain records such as copies of advertisements, letters or contacts with organizations, interviews with organizations, the media, prospective tenants, etc., public service announcements, and all other marketing efforts undertaken to rent • units. The records may be inspected at any time it is deemed necessary, but no less than annually. C. Owners, and /or their agents shall maintain records on tenants and prospective tenants. The records will include race, ethnicity, income level and gender of tenants and prospective tenants when possible. These records must be made available upon request, but no less than annually: D. All records shall be maintained for the period of affordability as specified by the agreement between the owner and the Hennepin Housing_ Consortium. E. Hennepin County shall maintain current records for HOME assisted projects. Where possible, a separate Affirmative Marketing File should be set up for each HOME assisted project. IV. Assessment of Marketing Efforts Marketing efforts of owners shall be monitored by the Hennepin Housing Consortium, by comparing occupancy data before and after efforts are made. Flagrant or continued noncompliance with policies or regulations may result in sanctions being imposed, such as repayment of the loan or any other • corrective action deemed necessary by the Hennepin Housing Consortium. Affirmative Marketing Policy Page 2 Certification Receipt for the HENNEPIN HOUSING CONSORTIUM AFFIRMATIVE MARKETING POLICY and Fair Housing and Equal Opportunity Guidelines /Regulations, Booklets, Posters, and /or Logos I, of (Name of person responsible for program) (Name of organization receiving HOME funds) hereby certify that I have received the above mentioned documents and /or materials. Organization By: (Authorized signature) • Title: Date: Affirmative Marketing Policy Page 3 EXHIBIT 5 • HENNEPIN HOUSING CONSORTIUM CONSTRUCTION AND REHABILITATION STANDARDS Hennepin Housing Consortium • HOME Investment Partnerships Program CONSTRUCTION AND REHABILITATION STANDARDS a ocl�arun�rrsr January 2011 Construction & Rehabilitation Standards TABLE OF CONTENTS I . Introductions .......................................................... ..............................1 II. Model Codes, Ordinances and Construction Regulations Model Codes ............ I III. Energy Codes and Standards ..................................... ..............................3 IV. Fair Housing and Handicapped Accessibility Regulations and Statutes ...........5 V. Material Standards and Installation ............................ ..............................6 VI. Additional Construction and Rehabilitation Standards Required ....................7 VII. Asbestos, Radon and Other Environmental Hazards ...... ..............................7 VIII. Lead Hazard Evaluation and Reduction ................ ..............................9 EXHIBIT A Four Approaches to Implementing Lead Hazard Evaluation and Reduction ................................................ .............................19 EXHIBIT B Summary of Lead Based Paint Requirements by Activity .............20 • EXHIBIT C Neighborhood Stabilization Program 3 (NSP3) Requirement ......... 21 Construction & Rehabilitation Standards I. Introduction The Construction and Rehabilitation Standards adopted by the Hennepin Housing Consortium (HHC) for the HOME Investment Partnerships Program (HOME) shall apply to all housing projects assisted with funding. The Construction and Rehabilitation Standards define a standard and code compliance level for the construction and rehabilitation necessary to correct health, safety and building code violations to achieve decent, safe and sanitary affordable housing and. All housing constructed or rehabilitated with HOME funds must meet all applicable local codes, rehabilitation standards, ordinances and zoning ordinances at the time of project completion, except as provided in paragraph (b) of 24 CFR 92.251. In the absence of a local code for new construction or rehabilitation, HOME assisted new construction or rehabilitation must meet the State of Minnesota adopted, Uniform Building Code (ICBO). All other HOME funded projects (e.g. acquisition) must meet the State or local housing quality standards and code requirements in absence of a standard or code projects, at a minimum, shall meet the Section 8 Housing Quality Standards (HQS) found in 24 CFR 982.401 at the time of completion. Moreover, other improvement that goes beyond the HQS criteria shall be undertaken when it is necessary to correct other substandard conditions or deficiencies. These improvements may pertain to, but shall not be limited to, work for structural integrity, functional performance of the systems (electric, plumbing and HVAC), and protection from weather exposure, energy efficiency, accessibility and hazardous material abatement. As stated in paragraph (b) of Section 92.251, if rehabilitation will occur after the transfer of ownership interest, then before the transfer of the homeownership interest, HHC must: • Inspect the housing for any defects that pose a danger to health; and • Notify the prospective purchaser of the work needed to cure the defects and the time by which defects must be cured an applicable property standards met. Then, the housing must be free from all noted health and safety defects before occupancy and not later than six (6) months after the transfer. And, the housing must meet the standards in the third paragraph above not later than two (2) years after the transfer of the ownership interest. All referenced codes, standards and regulations shall refer to the latest publication. Applicable codes, standards and regulations are not restricted to those listed in this document. II. Model Codes, Ordinances and Construction Regulations The Section 8 Housing Quality Standards shall regulate the minimum standards required for all the projects that will be funded by HHC. The minimum standards may be varied to • reflect climatic and geological conditions, security measures, building and fire code Construction & Rehabilitation Standards Page 1 compliance, energy conservation and other pertinent housing issues, which may directly • affect the living conditions of the household. Housing Quality Standards: Lj Sanitation A flush toilet in a separate and private room, a fixed basin with hot and cold running water, and a shower or tub with hot and cold running water shall be present in each dwelling unit and be in working order. ❑ Food Preparation and Refuse Disposal - A cooking stove or range, refrigerator with freezer compartment and sink with hot and cold running water shall be present in each dwelling unit and be in working order. Space shall contain adequate area to store, prepare and serve foods in a sanitary manner. • Space and Security - Living room, kitchen, bathroom and one sleeping room or living sleeping room be present. Exterior doors and windows accessible from outside of unit shall be lockable. • Thermal Environment Each dwelling unit shall have a heating system that adequately supplies safe heat to all habitable areas and that will be capable of maintaining a thermal environment healthy for the human body. ❑ Illumination and Electricity - Living and sleeping rooms each shall be with a minimum of one window. Bathroom and living area shall be with a ceiling or wall • type light fixture in working order. A minimum of two electric outlets, one of which may be an overhead light, shall be present and operable in living, kitchen and bathroom areas. ❑ Structure and Materials Ceilings, walls and floors shall not have any serious defects such as severe bulging or leaning, large holes, loose materials, severe buckling or noticeable movement under walking stress, missing parts or other serious damage. Roof structure shall be firm and weather tight, Exterior wall structure and surface shall not have any serious defects such as serious leaning, buckling, sagging, cracks or holes, loose siding, or other serious damage. Interior and exterior stairways, halls, porches, walkways, etc., shall not present a danger of tripping or falling. ❑ Interior Air Quality - Dwelling unit shall be free from dangerous levels of air pollution from carbon monoxide, sewer gas, fuel gas, dust, and other harmful air pollutants. Bathroom shall have at least one operable window or other adequate exhaust ventilation. ❑ water Supply - Water supply shall be free from contamination. ❑ Lead -Based Paint - Dwelling unit shall be in compliance with HUD Lead Based Paint regulations. Construction & Rehabilitation Standards Page 2 • Access - Proper means of egress shall be provided. The dwelling unit shall be usable capable of being maintained with unauthorized use of other private • properties, • Site and Neighborhood - Site and neighborhood shall be reasonably free from disturbing noises and reverberation and other hazards to the health, safety and general welfare of the occupants. • Sanitary Condition - The dwelling unit and its equipment shall be free of vermin and rodent infestation. Inspections and compliance are required both as a condition of application and upon project completion for release of HHC funds or to start the required affordability period. The local building official shall regulate all permits required by code or ordinance requirements and shall issue the certificate of occupancy after the construction /rehabilitation have been completed. Applicants should arrange with the local building official or HHC staff for a code review or site inspection early in the project, planning and budgeting phases, so as to assure that all code deficiencies are identified, budgeted and correctly resolved. In those instances where various codes and regulations govern a given condition, the terms of the highest or most restrictive standard shall apply. When work is performed on a component of an existing system, the entire system shall be required to meet minimum standards and local code requirements. New construction shall be in accordance with • local building code requirements. Final disbursement of HHC funds may be withheld until all code related improvements have been approved by the local building official and /or all other identified deficiencies' have been corrected and inspected by HHC. References: • 2000 International Building Code. • MN State Building Code, Chapter 1300 - 1370, 2003. • MN Statute Chapter 326 (Licensing of building and remodeling contractors) • HUD Housing Quality Standards, 24 CFR, Chapter 8, Article 882.109 • MN Plumbing Code, Chapter 4715, 2003 • Uniform Mechanical Code, 1991. • MN Amendments Uniform Mechanical Code. • National Electrical Code, 2002 ❑ Any applicable local, municipal, county state codes, ordinances, zoning regulations, or housing maintenance standards. III. Energy Codes and Standards Energy-efficiency features that are considered as cost effective, given consideration to local climatic conditions and fuel prices, shall be required with the funding of HHC projects. • Construction & Rehabilitation Standards Page 3 . New construction shall be governed by the energy codes and standards of the State of Minnesota. Energy improvements proposed as part of the rehabilitation may be restricted in structures that do not permit accessibility or become exposed during the rehabilitation and which are not practical when considering economic feasibility, program needs and the material and type of construction involved. For existing multi- family structures, three or more dwelling units, HHC may require that the owner /applicant contract with an energy auditor who is certified by the State of Minnesota or licensed as a mechanical engineer to perform an energy audit on the structure and to identify energy saving measures and costs. The following building components shall be evaluated for energy and cost savings (with the exception of those that are not appropriate for the building type or equipment): • Quantities and costs of current energy consumption, by fuel type • Attic, walls, crawl space and foundation insulation • Heat loss through windows and doors • Caulking and weather - stripping ❑ Vapor barriers, vapor transmission and venting, and moisture condensation • Hot water and forced -air heating systems and equipment • Domestic water systems and fixtures . ❑ Heating /venting /air conditioning systems, equipment, motors, controls and metering • Electrical service and metering • Interior and exterior common area lighting Where the energy audit identifies excessive energy consumption or alternatives for energy conservation, the applicant /owner shall perform all those conservation measures that will provide seven years or better payback. Other conservation measures with a seven -to -ten payback shall be eligible and considered viable for HHC funding. References: • MN Energy Code, Chapters 7670, 7672, 7674 • International Energy Conservation Code (IECC 2000) • HUD Regulations 24 CFR part 39: "'Cost - Effective Energy Efficiency (Conservation) Standards for Rehabilitation of Residential Properties" HHC also encourages funded project to include the following design features to help, reduce energy expenditures, enhance the health, well- being and productivity of the building occupants in funded projects: • Construction & Rehabilitation Standards Page 4 ❖ Minnesota Housing Overlay to the MN Green Communities Criteria. www.mnhousing.gov • ❖ Sustainable Design. www .sustainabledesignguide.umn.edu ❖ Energy Star products, standards and building certification. www.energystar.gov ❖ The Principals of Universal Design. "The design of products and environments to be usable by all people, to the greatest extent possible, without the need for adaptation or specialized design." More information can be found at The Center for Universal Design. www.design.ncsu.edu /cud/ IV. Fair Housing and Handicapped Accessibility Regulations and Statutes Projects may require certain design provisions and /or construction features to accommodate accessibility and occupancy by mentally or physically disabled persons. Federal Regulations 24 CFR Part 8, which implements Section 504 of the Rehabilitation Act of 1973, stipulates for other rehabilitation projects "...alterations to dwelling units in a multi- family housing project (including public housing) shall, to the maximum extent feasible, be made to be readily accessible to and usable by individuals with handicaps. If alterations of single elements or spaces of a dwelling unit, when considered together, amount to an alteration of a dwelling unit, the entire dwelling unit shall be made accessible. Once five percent of the dwelling units in a project are readily accessible to and usable by individuals with mobility impairments, then no additional elements of • dwelling units, or entire dwelling units, are required to be accessible under this paragraph. Alterations to common areas or parts of facilities that affect accessibility of existing housing facilities shall, to the maximum extent feasible, be made to be accessible to and usable by individuals with handicaps. For purposes of this paragraph, the phrase "to the maximum extent feasible" shall not be interpreted as requiring that the recipient (including a PHA) make a dwelling unit, common area, facility or element thereof accessible if doing so would impose undue financial and administrative burdens on the operation of the multifamily housing project." When the anticipated cost of a rehabilitation project consisting of 15 units or more is at least 75 percent of the project replacement cost (excluding land), the accessibility and adaptability requirements are the same as new construction. . New construction projects must be designed to meet the UFAS standards. The also must be constructed with five percent of the dwelling units (a minimum of one unit) shall be accessible and adaptable to persons with physical mobility impairments and two percent (a minimum of one unit) shall be accessible to hearing or vision- impaired persons. These units cannot be the same units. References: • Fed. Reg., 29 U.S.C. 794: "Section 504 of the Rehabilitation Act of 1973" • Fed. Reg., 42 U.S.C. 3601 -3619: "Fair Housing Act, Title VIII of the Civil Rights Act of 1968° Construction & Rehabilitation Standards Page 5 o Fed Reg., 24 CFR Part 8: "Non - discrimination Based on Handicap in Federally . Assisted Programs and Activities; Final Rule; June 2, 1968" ❑ Uniform Federal Accessibility Standards (UFAS) (Fed. Std. 795, April 1, 1988) ❑ American National Standard Specifications for Making Buildings and Facilities Accessible to and Usable by Physically Handicapped People (ANSI 117.1, 1980) ❑ MN State Building Code, Chapter 1340: "Facilities for the Handicapped" ❑ Fair Housing Amendments Act of 1988 ❑ Americans with Disabilities Act, July 26, 1990 V. Additional Construction and Rehabilitation Standards Required HHC reserves the right, where deemed appropriate, to require a standard of quality and performance that may exceed the minimum standards of applicable codes p Y PP , ordinances or regulations. A work write -up that identifies the improvements and specifies the type of work needed to meet the Construction and Rehabilitation Standards shall be required for all HOME projects. All projects require an inspection of the subject property and evaluation of the current physical condition of the site, building (s) and other real estate features, in conjunction with the applicant's proposed rehabilitation scope of work. Based on a comparison of the applicant's proposed work scope and the actual physical condition of the property, HHC • may elect to require the applicant to increase or otherwise modify their proposed scope of work to include repair, replacement or reconstruction of physical elements that have failed or are in danger of failing. In lieu of immediate repair or replacement, HHC may elect to require the applicant to escrow; at loan closing, sufficient funds to cover anticipated future repair or replacement costs. Depending on the scale of the project, HHC may require two or three acceptable competitive bids for the proposed work. Projects involving 12 or more HOME assisted units shall abide by the provisions of the Davis -Bacon Act, the Contract Work Hours and Safety Standards Act and the other Federal laws and regulations that pertain to labor standards and HUD Handbook 1344.1 (Federal Law Standard Compliance in Housing and Community Development Programs), as applicable. Bids for projects of 12 or more units must be secured from General Contractors and not from individual trades. HHC reserves the right to extend this requirement to any project. Each existing development shall be evaluated and underwritten on an individual, case -by- case basis to achieve these two equally fundamental goals after rehabilitation. 1. The property shall provide affordable safe, secure, sanitary and functional housing, where its residents can reasonable expect to peacefully reside with dignity and P p Y 9 Y pride. Construction & Rehabilitation Standards Page 6 2. The property shall have a high likelihood of remaining safe, viable and affordable housing by employing prudent management of the property and its resources for • the full term of the HHC's loan. Property owners are encouraged to secure advice and assistance on issues pertaining to codes, regulations and standards from HHC, local building officials, architects, engineers, contractors or other qualified parties or individuals. VI. Material Standards and Installation For homeownership and homeowner rehabilitation projects, all installed materials shall be new and of medium grade and quality. Colors, patterns, fixtures or as specified in the work write -up shall be furnished by the contractor from the supplier's available selection. The applicant shall be responsible for costs that exceed a specified cost allowance. The quality of installation shall be in compliance with manufacturer's specifications and trade standards. All operational manuals for newly installed equipment shall be given to the applicant /owner. All surplus materials delivered to the job site and all materials, fixtures and equipment removed and not reused shall remain or become the property of the contractor and its subcontractors and shall be removed from the job site promptly after completion as well as all rubbish and debris resulting from the contractor's operations. The premises shall be left in broom -clean condition. For rental projects, HHC has adopted the minimum design construction and material standards included in the Minnesota Housing Finance Agency (MHFA) Multi- family Technical Handbook. This handbook is available on -line or by request from the MHFA. VII. Asbestos, Radon and Other Environmental Hazards Asbestos is a mineral fiber that separates into strong, - very fine fibers. Un'ti11970, asbestos was found in a variety of products. The asbestos fibers were added to strengthen and provide heat insulation an 9 p d fire fibers were added to strengthen and provide heat insulation and fire resistance to materials. The asbestos material, when disturbed (can be crushed by hand pressure or the surface if not sealed), may release fibers, which can be inhaled into the lungs and may create a health hazard. The risk of lung cancer, asbestosis, and mesothelioma increases with the number of fibers inhaled. Common products that might have contained asbestos and could release fibers include: • Steam pipes, boilers and furnace ducts insulated with an asbestos blanket or paper tape. • pe.°1!ient floor 4.11e 1 (vinyl asbestos, asphalt, and rubber), the backing on vinyl sheet flooring, and adhesives used for installing floor tile. • Cement sheet, millboard and paper used as insulation around furnaces and wood burning stoves. ❑ Door gaskets in furnaces, wood stoves and coal stoves. ❑ Soundproofing or decorative :material sprayed on walls and ceilings. • ❑ Patching and joint compounds for walls and ceilings, and textured paints. Construction & Rehabilitation Standards Page 7 ❑ Asbestos cement roofing, shingles, and siding. ❑ Artificial ashes and embers sold for use in gas -fired fireplaces. When asbestos is positively identified by testing and is endangering the occupant, the asbestos shall be repaired, encapsulated or removed as determined by ;.a qualified and licensed asbestos abatement professional. Radon is an invisible, odorless, radioactive gas produced by the decay of uranium in rock and soil. Radon decays into radioactive particles, which inhaled, may cause damage to lung tissues and increase the risk of lung cancer. If the results of the testing, made under closed - house conditions in the lowest livable area are greater than 4 pCi /L then mitigation should be made. The two most common radon measurements devised are the charcoal canister and the alpha track detector. In detached houses and existing structures, the following approaches can be used for mitigation: (per EPA recommendations) • Sealing off entry routes - can include covering exposed earth with concrete or gas -proof liners, sealing cracks and voids in concrete walls and floors, covering sumps and placing removable plugs in untrapped floor drains. • House ventilation - involves increasing a house's air exchange rate (the rate at which incoming fresh air replaces existing indoor air) either naturally by opening windows or vents, or mechanically through use of fans or heat recovery ventilators. • Soil Ventilation - prevents radon from entering a house be drawing the gas away from the foundation before it can enter. Active ventilation techniques include hollow black wall ventilation and sub -slab ventilation. For funding an environmentally hazardous condition that constitutes a danger or threatens the health and safety of the occupants or neighboring area the condition shall be properly identified and documented for the type of hazard, the degree of health or environmental risk involved and the process for remedial action with a detailed plan. All work shall comply with governing regulations and codes. HHC reserves the right to determine the scope of work and to deny funding should the corrective /abatement cost exceed the HOME funds available after the rehabilitation work. References: ❑ U.S. Environmental Protection Agency, June 1988: "Asbestos in the Home: A Homeowner's Guide" ❑ MN Department of Health, February 1992:. "Guidelines for Developing an Effective Asbestos Control Plan" ❑ U.S. Environmental Protection Agency, June 1986; "Radon Reduction Techniques for Detached Houses" (Technical Guidance) ❑ U.S. Environmental Protection Agency, September 1987: "Radon Reduction Methods: A Homeowner's Guide: ❑ MN Indoor Air Quality Task Force, May 1987: "MN Homeowner's Guide toRadon" • Construction & Rehabilitation Standards Page 8 VIII. Lead Hazard Evaluation and Reduction This section of the manual provides a detailed description of the lead hazard evaluation and lead hazard reduction requirements for rehabilitation using HOME funding. This section does not describe requirements for Lead Hazard Evaluation and Reduction if a "lead order" has been issued by an assessing agency or if work is considered "regulated lead work ", as defined by the Minnesota Department of Health. While this description is comprehensive, project owners should consult the regulation itself for the exact requirements. In 1978, the Federal government banned the use of lead in paint. Paint produced before 1950 typically had the highest lead content. It is, therefore, a reasonable assumption that housing constructed prior to 1978 has a high probability of having lead -based paint. Housing built prior to 1978 may contain lead -based paint. Deteriorated lead based paint (chalking, flaking, peeling, cracked or Loose) poses the greatest hazard, as lead particles and dust can be released to the surrounding environment, and thus may be inhaled or eaten by a building's occupants. Intact lead -based paint on chewable surfaces (window sills, doors, handrails, etc.) also poses a health risk, as young children and infants may ingest lead by chewing on these surfaces. On September 15, 1999, the U.S. Department of Housing and Urban Development (HUD) issued a new regulation to protect young children from lead -based paint hazards in housing that is financially assisted by the Federal government or being sold by the government. It went into effect on September 15, 2000. The regulation, "Requirements for Notification, Evaluation and Reduction of Lead -Based Paint Hazards in Federally Owned Residential • Property and Housing Receiving Federal Assistance," appears within title 24 of the Code of Federal Regulations (CFR) as part 35 (24 CFR 35). It contains lead hazard evaluation and reduction requirements for properties receiving HUD funding. Since the HOME Program is a federally funded program provided by HUD, the HUD lead- based paint regulation shall apply to housing developments receiving HOME funds. However, not all housing developments are covered by the HUD lead -based paint regulation. Types of Housing.Covered by the new HUD Lead -Based Paint Regulation • Federally owned housing being sold • Housing receiving a Federal subsidy that is associated with the property, rather than with the occupants (project -based assistance) • Public housing • Housing occupied by a family (with a young child) receiving a tenant -based subsidy (such as a voucher or certificate) • Multifamily housing for which mortgage insurance is being sought • Housing receiving Federal assistance for rehabiiitation, reducing homelessness, and other special needs (e.g.: HOME Program) Types of Housing Not Covered by HUD Lead -Based Paint Regulation ❑ Housing built since January 1, 1978, when lead paint was banned for residential use • Construction &Rehabilitation Standards Page 9 . • Housing exclusively for the elderly or people with disabilities, unless a child under age 6 is expected to reside there • Zero- bedroom dwellings, including efficiency apartments, single room occupancy housing, dormitories, or military barracks ❑ Property that has been found to be free of lead -based paint by a certified lead - based paint inspector • Property where all lead -based paint has been removed • Unoccupied housing that will remain vacant until it is demolished • Non- residential property • Any rehabilitation or housing improvement that does not disturb a painted surface. Other Federal Lead Regulations In addition to the HUD lead regulations there are other Federal regulations that deal with lead based paint safety. They are: ❑ OSHA's Lead Regulations. (29 CFR 1926.62 and 29 CFR 1910.1025) These regulations cover Federal worker protection requirements for workers in industry, construction, remodeling, and renovation. ❑ EPA's Lead Regulations (40 CFR 745 and 40 CFR 745.80) • These regulations cover Federal regulations for disposal of lead waste and contractor notification requirements. Minnesota Department of Health (MDH) The State of Minnesota also has requirements for lead -based paint hazard surveillance, prevention, evaluation, and reduction. The Minnesota Department of Health (MDH) is in charge of licensing and certification of the lead worker, lead supervisor, lead inspector, lead risk assessor, lead project designer, and lead firm. If an assessing agency has issued a "lead order" or if work is considered "regulated lead work" the requirements for head hazard evaluation and lead hazard reduction shall comply with Minnesota Statutes 144.9501 to 144.9509. Visual Assessment Every HOME assisted housing unit shall have a Visual Assessment conducted by a person trained to identify deteriorated paint (e.q., HQS inspector, rehab specialist). The visual assessment is a surface -by- surface inspection for deteriorated paint consisting of a visual search for cracking, scaling, chalking, peeling, or chipping paint. HUD also recommends that the visual assessment should also include a search for dust and debris, including paint chips. Any deteriorated paint shall be documented in an inspection report. The person(s) conducting the visual assessment for deteriorated paint must be trained using the Visual Assessment • Training Module that is available at the HUD website. This visual assessment is normally Construction & Rehabilitation Standards Page 10 conducted at time of initial inspection and for rental properties on an annual basis as part of • the post rehabilitation activities and ongoing maintenance. Rehabilitation Assistance Lead -based paint requirements for rehabilitation developments using HOME funds fall into three categories, which are dependent on the average per unit amount of Federal rehabilitation assistance provided. The three categories are: • Assistance of up to and including $5,000 per unit • Assistance of more that $5,000 per unit up to and including $25,000 per unit • Assistance of more than $25,000 per unit Calculating Rehabilitation Assistance HUD has ,. s established a dual threshold method of calculating the level of rehabilitation assistance that applies to a rehabilitation development. The level of rehabilitation assistance is determined by taking the lower of: Per unit rehabilitation hard costs ❑ Rehabilitation hard costs are the actual costs, regardless of funding source, associated with the physical development of a unit. It excludes Soft costs, acquisition of property, program administration, relocation, lead -based paint • hazard evaluation costs, and lead based paint hazard reduction costs. • ° If all the units in a multi -unit development are Federally assisted, the average rehabilitation is calculated by dividing the total rehab hard costs for the development by the total number of units. • If there are both Federally assisted units and non - assisted units in a multi- unit development use the following formula: a/c + b/d Where: a= Rehabilitation - hard costs, as defined above, for all assisted dwelling units (not including common areas and exterior surfaces); b= Rehabilitation hard costs, as defined above, for common areas and exterior surfaces; c =Number of Federally assisted dwelling units in the development; d =Total number of dwelling units in the development. -OR- Per unit federal assistance ❑ Includes: All Federal funds provided to the development including funds from • program income, typically HOME and CDBG. Construction & Rehabilitation Standards Page 11 ❑ Excludes: Funding such as Low Income Housing Tax Credits and funds provided • under the US Department of Energy's Weatherization Program. The per unit Federal assistance is the total Federal assistance divided by the total number of Federally assisted dwelling units in the development. Example: A 10 -unit property is receiving $140,000 in HOME Rental Rehab funds for rehabilitation. All units (10) are HOME - assisted. The total applicable rehabilitation hard costs for the development are $300,000. What category of rehabilitation assistance would apply? The per unit rehabilitation hard cost is: $300,000/10 units = $30,000 The per unit Federal assistance is: $140,000/10 units = $14,000 The lesser of the two. The category into which a rehabilitation job falls is determined by the lesser of the two threshold numbers. In this example per unit Federal assistance ($14,000) is the lesser number, so the applicable requirements would be those for the $5,001 - $25,000 category. Major Rehabilitation Requirements of the HUD Lead -Based Paint Regulation The new HUD regulations will require Projects to make moderate adjustments to their rehabilitation procedures. These adjustments will include providing notice to occupants, obtaining a risk assessment or presuming the presence of lead, focusing on lead -safe • work practices and repairing paint deterioration, conducting interim controls or standard treatments, and obtaining a clearance examination. Projects involved in HOME rehabilitation activities must meet the requirements in the following areas: • Notification • Lead Hazard Evaluation • Lead Hazard Reduction • On -going Maintenance • Record Keeping Notification Projects must meet three notification requirements: 1. Distribution of Lead Hazard Information Pamphlet (24 CFR 35.130) 2. Notice of Lead Hazard Evaluation or Presumption (24 CFR 35.125). 3. Notice of Lead-Based Paint Hazard Reduction Activity (24 CFR 35.125) Evaluation and Lead Hazard Reduction There are three approaches to implementing lead hazard evaluation and reduction for rehabilitation developments. They are as follows: (See Summary of Four Basic Strategies • for Lead Hazard Evaluation and Control, Exhibit "'A"). Construction & Rehabilitation Standards Page 12 • Strategy 1. Do no harm • • Strategy 3. Assess and control lead -based paint hazards • Strategy 4. Assess and abate lead -based paint hazards NOTE: Not listed above is Strategy 2. "Identify and Stabilize Deteriorated Paint ", because it does not apply to rehabilitation. The amount of Federal rehabilitation assistance provided dictates which strategy is to be used and the appropriate method of lead hazard evaluation and lead hazard reduction. Lead Hazard Evaluation Methods 1. Paint Testing. Paint testing entails testing selected painted surfaces (usually those surfaces with paint deterioration and surfaces that will be disturbed during rehab) to determine if they contain lead -based paint, using methods such as portable XRF (X- ray fluorescence) lead -in -paint analyzer or laboratory analysis of paint chip samples. A certified dead inspector or Risk Assessor must complete paint testing. Option: The borrower may presume that lead -based paint is present or that lead based paint hazards exist or both. In such cases, evaluation is not required. 2. Risk Assessment (24 CFR 35.120 -b). Risk Assessment involves the process of • determining and then reporting the existence, nature, severity, and location of lead- based paint hazards in housing through an on -site investigation and the possible means of correcting any hazards identified. Risk Assessments must be completed by a certified Risk Assessor. Option: The borrower is permitted to conduct a Lead Hazard Screen (24 CFR 35.120 -b and 35.1320 -c) instead of a risk assessment. The lead hazard screen has more stringent requirements for dust lead and soil lead and is only advisable in units that are in good condition and built after 1970. If the lead hazard screen indicates that there is no lead contamination, no risk assessment or lead hazard reduction is required. If the lead hazard screen fails, the Projects must then conduct a full risk assessment. Lead Hazard Reduction Methods 24 CFR 35.1325 and 35.1330 Lead hazard reduction methods refer to specific types of treatments to control lead -based paint hazards. As described previously, the level of Federal assistance dictates what method(s) can be used for lead hazard reduction. They are as follows: 1. Paint Stabilization. (24 CFR 35.1330 -b) This lead hazard reduction method reduces exposure to lead - based paint by repairing any physical defect in the substrate of a painted surface that is causing paint deterioration, removing loose paint and other material from the surface to be treated, and applying a new protective coating or paint. 2. Interim Controls. (24 CFR 35.1330) Interim controls temporarily reduce exposure • to lead -based paint hazards through repairs, painting, maintenance, special cleaning, Construction & Rehabilitation Standards Page 13 occupant protection measures, clearance, and education programs. With continued • maintenance, interim controls may last for many years. 3. Standard Treatments. (24 CFR 35.120 -a and 35.1335) In some cases standard treatments may be conducted in lieu of interim controls on all applicable surfaces, including soil, to control lead -based paint hazards that may be present. All standard treatment methods must follow the same safe work practices and clearance requirements that apply to interim control activities. 4. Abatement. (24 CFR 35.1325) Abatement permanently eliminates lead- based paint and /or lead based paint hazards by removing lead -based paint or permanently encapsulating or enclosing the lead -based paint, replacing components with lead based paint, removing lead- contaminated dust and removing or permanently covering lead- contaminated soil. Encapsulation and enclosure require ongoing maintenance to check their effectiveness. Qualifications To Perform Lead Hazard Reduction Workers performing paint stabilization, standard treatment or interim controls must be trained in accordance with the OSHA requirements (29 CFR 1926.59) and either: 1. Be supervised by an individual certified as a lead- based paint abatement supervisor (40 CFR 745.225), or • 2. Have successfully completed one of the following courses: • A lead -based paint abatement worker course accredited in accordance with 40 CFR 745.225; • The Lead -Based Paint Maintenance Training Program -Work Smart, Work Wet, and Work Clean to Work Lead Safe, prepared by the National Environmental Training Association for EPA and HUD; • The HUD /NARI Lead Remodeler's Training Program, developed by HUD and the National Association of the Remodeling Industry; or • An equivalent course approved by HUD. Workers performing abatement must have completed a Lead -Based Paint Abatement Worker course accredited by EPA. A lead -based paint abatement supervisor certified under a state program authorized by EPA or by EPA itself, must supervise these workers. Safe Work Practices (24 CFR 35.1350) Regardless of what method of lead hazard reduction is used, safe work practices shall be followed. Safe work practices include occupant protection, worksite preparation, avoidance of prohibited practices and worksite clean up. Exception: Safe work practices are not required when maintenance or hazard reduction is less than the following "De Minimus Levels ": o 20 s.f. on exterior surfaces ❑ 2 s.f. in any one interior room or space Construction & Rehabilitation Standards Page 14 ❑ 10% of the total surface area on an interior or exterior component with small • surface area. (e.g. windowsill, trim, baseboards, etc Relocation and Occupant Protection (24 CFR 35.1345) Appropriate actions must be taken to protect occupants from lead -based paint hazards associated with lead hazard reduction activities. Occupants may not enter the worksite during lead hazard reduction activities. Occupants may not enter the worksite during lead hazard reduction activities. Reentry is permitted only after lead hazard reduction activities are completed and the dwelling has passed a clearance examination. Occupants of the unit must be temporarily relocated to a suitable unit that is decent, safe, sanitary, and free of lead -based paint hazards during lead hazard reduction activities. Relocation must be done before lead hazard reduction activities begin. Borrower must protect occupants' belongings from lead contamination during lead hazard reduction activities by relocating or covering and sealing them and ensure that the worksite is secured against entry during nonworking hours until the unit passes a clearance examination. Circumstances when Occupant Relocation is Not Required Renovation and intervention will not disturb lead -based paint or lead contaminated dust. Hazard reduction activities inside will be completed within one period in eight daytime hours, the site will be contained and the work will not create other safety, health or environmental hazards. • Exterior -only treatment where the windows, doors, ventilation intakes and other openings near the worksite are sealed during hazard reduction activities and cleaned afterward, and a lead -free entry is maintained. Hazard reduction activities will be completed within five calendar days; the work area is sealed; at the end of each day, the area within 10 feet of the containment area is cleared of debris; occupants have safe access to sleeping areas, bathroom and kitchen facilities; and treatment does not create other safety, health or environmental hazards. At no time can occupants be permitted into the worksites, unless they are employed in.the work, until after the, work is complete and clearance, if required, has been achieved. HUD has advised that relocation of elderly occupants is not typically required, so long as complete disclosure of the nature of the work is provided and informed consent of the elderly occupant(s) is obtained before commencement of the work. (See 'Interpretive Guidance -The HUD Regulation on Controlling Lead -Based Paint Hazards in Housing Receiving Federal Assistance and Federally Owned Housing Being Sold," 6/22/00 edition.) Clearance (24 CFR 35.1340) A clearance examination involves a visual assessment and dust testing to determine if the unit is safe for re- occupancy following a lead hazard reduction activity. Clearance following abatement shall be performed by persons certified to perform risk • assessments or lead- based paint inspections. A certified clearance technician may Construction & Rehabilitation Standards Page 15 perform clearance following activities, other than abatement. If the test results equal or • exceed the designated standards (24 CFR 35.1320 -b2), the dwelling unit, worksite, or common area fails the clearance examination. Below are the thresholds for clearance: Floors Interior Window �N9�fts) Window Sills Troughs `fts fts Lead in Dust (as measured by a dust 40 250 800 wipe sample Ongoing Maintenance (24 CFR 35.1355) All borrowers must institute ongoing maintenance of painted surfaces and safe work practices as part of regular building operations. This includes: A visual inspection of lead - based paint annually and at unit turn -over; repair of all unstable paint; and repair of encapsulated or enclosed areas that are damaged. • Ongoing Maintenance Records— Borrowers must keep ongoing maintenance records and records of relevant building operations for use during reevaluations. • Borrowers and their maintenance personnel must be trained in ongoing lead based paint maintenance. Documentation and Records (24 CFR 35.175) • There are numerous records that Projects must keep to verify that they conducted the required lead hazard response activities. These records must be kept for at least three years after the five -year compliance period has elapsed. Projects are required to provide a copy of any of the following records to MHFA and HUD upon request: ❑ lead Hazard Information Pamphlet —A record of the distribution of the lead hazard information pamphlet. ❑ Notification of Lead Hazard Evaluation and Reduction -The Projects must keep a copy of each notification of lead hazard evaluation report and lead hazard reduction. ❑ Lead Hazard Evaluation Reports —A copy must be kept of each report of risk assessment, paint testing or lead -based inspection. ❑ Clearance and Abatement Reports. ❑ Lead -Based Pain Summary Sheet and Checklist (LBP - 1) Requirements for Federal Assistance of $5,000 Per Unit or less .. Do No Harm" Lead Hazard Evaluation -Paint testing must be conducted to identify lead -based paint on painted surfaces that will be disturbed or replaced, or Projects may .presume that these surfaces contain lead -based paint. If paint testing is conducted and no lead -based paint is found, no further requirements apply. • Lead Hazard Reduction— Projects must repair all paint that is disturbed during Construction & Rehabilitation Standards Page 16 rehabilitation if such paint is found or presumed to be lead -based paint. • If lead paint is detected or presumed, safe work practices must be used during rehabilitation unless no more than 2 square feet of paint is disturbed in any interior room, no more than 20 square feet of paint on exterior surfaces is disturbed, and /or 10 % of a building component with a small surface area (such as a painted window frame) is disturbed. Clearance is required only for the worksite. Clearance is not required if it is known that no lead based paint has been disturbed or if no more than 2 square feet of paint is disturbed in any interior room, no more than 20 square feet of paint on exterior surfaces is disturbed, and /or 10% of a building component with a small surface area (such as a painted window frame) is disturbed. Requirements for Federal Assistance of $5,001 to $25,000 Per Unit "Assess and Control Lead Hazards" Lead Hazard Evaluation There are two requirements, as follows: • Paint testing must be conducted to identify lead -based paint on painted surfaces that will be disturbed or replaced, or Projects may presume that these surfaces contain lead- based paint. • A risk assessment must be conducted prior to rehabilitation to find lead -based paint hazards throughout assisted units, in common areas that service those units, and on exterior surfaces, or Projects may presume that lead -based paint hazards exist and • use Standard Treatments option. Lead Hazard Reduction -If lead -based paint or lead -based paint hazards are detected during the evaluation on interior surfaces in the dwelling units, common areas that service these units, or exterior surfaces, interim controls must be implemented to control lead - based paint hazards. If lead based paint is detected or presumed, safe work practices must be used during lead hazard reduction. Clearance conducted by a certified lead -based paint inspector, risk assessor or clearance /sampling technician is required after lead hazard reduction activities are completed in a unit, common areas serving the unit, and exterior areas where hazard reduction took place. A licensed lead risk assessor must sign Clearance /sampling technician reports. Options: • Standard Treatments in lieu of Evaluation • Lead Hazard Screen versus Risk Assessment (Recommended only on units that are in good condition.) • Abatement in lieu of interim control Construction & Rehabilitation Standards Page 17 . Requirements for Federal Assistance Over $25,000 Per Unit "Assess and Abate Lead Hazards" Lead Hazard Evaluation The two requirements are as follows: • Paint testing must be conducted to identify lead -based paint on painted surfaces that will be disturbed or replaced, or Projects may presume that these surfaces contain lead -based paint. • A risk assessment must be conducted prior to rehabilitation to find lead -based paint hazards throughout assisted units, in common areas that service those units, and on exterior surfaces, or Projects may presume that lead -based paint hazards are present and abate all paint that is disturbed and all presumed lead -based paint hazards, including bare soil. Lead Hazard Reduction —If lead -based paint or lead -based paint hazards are detected during the evaluation on interior surfaces in the dwelling units, common areas that service these units, or exterior surfaces, abatement must be implemented to control 'lead -based paint hazards. Exception: If lead -based paint hazards are identified on exterior surfaces that are not to be disturbed by rehabilitation, interim controls may be completed instead on these exterior hazards. Safe work practices must be used during lead hazard reduction. • Clearance conducted b a certified lead -bas inspector or risk assessor is i y lead-based paint p sk a required after lead hazard reduction activities are completed in a unit, common areas serving the unit, and exterior areas where hazard reduction took place. Options: ❑ Presume Lead in lieu of Evaluation ❑ Lead Hazard Screen versus Risk Assessment. Construction & Rehabilitation Standards Page 18 EXHIBIT A • FOUR APPROACHES TO IMPLEMENTING LEAD HAZARD EVALUATION AND REDUCTION APPROACH 1. DO NO HARM Lead Hazard EVALUATION Lead Hazard REDUCTION OPTIONS Repair paint surfaces disturbed during work. Forego paint testing and Paint testing performed Safe work practices used presume lead based paint is on surfaces to be when working on areas present and use safe work disturbed, identified as lead based paint. practices on all surfaces being disturbed. Clearance performed. APPROACH 2. IDENTIFIY AND STABILIZE DETERIORATED PAINT Lead Hazard EVALUATION Lead Hazard REDUCTION OPTIONS Paint stabilization of Perform paint testing on Visual assessment identified deteriorated paint. deteriorated paint. Paint performed to identify Safe work practices used. stabilization, safe work practices deteriorated paint. requirements, and clearance only Clearance performed. apply if paint is lead based paint. APPROACH 3. IDENTIFY AND CONTROL LEAD HAZARDS Lead Hazard EVALUATION Lead Hazard REDUCTION OPTIONS Interim controls performed Forego risk assessment and Paint testing performed on identified hazards. g p presume lead based paint on surfaces to be and /or lead based paint hazards disturbed. Safe work practices used. are present and perform Clearance performed. standard treatments. APPROACH 4. IDENTIFY AND ABATE LEAD HAZARDS Lead Hazard EVALUATION Lead Hazard REDUCTION OPTIONS Abatement performed on identified hazards. Forego paint testing and risk Paint testing performed assessment presume lead based on surfaces to be Interim controls performed paint and /or lead based paint disturbed, on identified hazards on the hazards are present and perform exterior that are not disturbed abatement on all. applicable Risk assessment by rehabilitation. performed on entire surfaces- deteriorated, impact, dwelling. Safe work practices used. friction, chewable and surfaces to be disturbed. I Clearance performed. • Construction & Rehabilitation Standards Page 19 EXHIBIT B SUMMARY OF LEAD BASED PAINT REQUIRMENTS BY ACTIVITY Rehabilitation TBRA A, L, SS, O) ( Subpart ] (Subpart M (Subpart K 5$5,000 $5001- 000 Homebuyer and 25,000 >$25, Special Needs* Approach to . 2 Identify and 3. Identify 4.Indentify 2. Identify and Lead Hazard 1. Do No stabilize Evaluation and Harm and control and abate deteriorated stabilize Reduction lead hazards lead hazards p aint deteriorated paint Notification Yes Yes Yes Yes Yes Paint Testing Paint Testing Lead Hazard Visual Evaluation Paint Testing and Risk and Risk Assessment Visual Assessment Assessment Assessment Abatement Repair (Interim surfaces Interim Controls on Paint exterior Paint Stabilization disturbed Controls Stabilization during rehab surfaces not Lead Hazard disturbed by Reduction rehab Safe work Safe work Safe work Safe work Safe work practices practices practices practices practices Clearance Clearance Clearance Clearance (only Clearance if lead (only if lead Ongoing HOME rental HOME rental HOME rental Yes Maintenance only only only Yes (if ongoing relati EIBLL No No No Yes No Requirements Presume Presume Presume Paint testing on Paint testing on lead based lead based lead based deteriorated deteriorated paint paint paint and /or paint. paint. and /or hazards Options Paint Paint Use safe hazards Abatement stabilization stabilization work on all practices Perform applicable Use safe work Use safe work standard surfaces practices practices treatments *Special Needs Housing may be subject to the requirements of Subpart J, M, or K depending on the nature of the assistance provided. However, since most special needs housing involves acquisition, leasing, support services and operations, for the purposes of this table it has been laced in this column. Construction & Rehabilitation Standards Page 20 EXHIBIT C • NEIGHBORHOOD STABILIZATION PROGRAM 3 (NSP3) REQUIRED STANDARDS ADDITIONS Hennepin County has added the following required by NSP, as follows: All gut rehabilitation or new construction (i.e., general replacement of the interior of a building' that may or may not include changes to structural elements such as flooring systems, columns or load bearing interior or exterior walls) of residential buildings up to three stories must be designed to meet the standard for Energy Star Qualified New Homes. All gut rehabilitation or new construction of mid -or high -rise multifamily housing must be designed to meet American Society of Heating, Refrigerating, and Air- Conditioning Engineers (ASHRAE) Standard 90.1 -2004, Appendix G plus 20 percent (which is the Energy Star standard for multifamily buildings piloted by the Environmental Protection Agency and the Department of Energy). Other rehabilitation must meet these standards to the extent applicable to the rehabilitation work undertaken, e.g., replace older obsolete products and appliances (such as windows, doors, lighting, hot water heaters, furnaces, boilers, air conditioning units, refrigerators, clothes washers and dishwashers) with Energy Star -46 labeled products. Water efficient toilets, showers, and faucets, such as those with the WaterSense Label, must be installed. Where relevant, the housing should be improved to mitigate the impact of disasters (e.g., earthquake, hurricane, flooding, fires). • Hennepin County will also encourage inclusion of the following design features in all activities to help reduce energy expenditures, enhance the health, well -being and productivity of the building occupants in NSP assisted projects: MINNESOTA HOUSING OVERLAY TO THE MN GREEN COMMUNITIES CRITERIA WWW.MNHOUSING.GOV ❖ SUSTAINABLE DESIGN. WWW .SUSTAINABLEDESIGNGUIDE.UMN.EDU ENERGY STAR PRODUCTS, STANDARDS AND BUILDING CERTIFICATION WWW.ENERGYSTAR.GOV THE PRINCIPALS OF UNIVERSAL DESIGN; `THE DESIGN OF PRODUCTS AND ENVIRONMENTS TO BE USABLE BY ALL PEOPLE, TO THE GREATEST EXTENT POSSIBLE, WITHOUT THE NEED FOR ADAPTATION OR SPECIALIZED DESIGN." MORE INFORMATION CAN BE FOUND AT THE CENTER FOR UNIVERSAL DESIGN. WWW.DESIGN.NCSU.EDU /CUD/ • Construction & Rehabilitation Standards Page 21 i Hennepin Housing Consortium HOME Investment Partnership Program Construction Rehabilitation Standards City Council Agenda Item No. 6e COUNCIL ITEM MEMORANDUM • DATE: August 1, 2011 TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk jwt SUBJECT: Resolution Appointing Election Judges to Serve in Special Elections Recommendation: It is recommended that the City Council consider adoption of a Resolution Appointing Election Judges to Serve in Special Elections. Background: Governor Bark Dayton issued a Writ of Special Election to fill the State Senate vacancy caused by the passing of Senator Linda Scheid on June 15, 2011. The special election will be held on Tuesday, October 18, 2011, and a special primary, if necessary, will be held on Tuesday, September 13, 2011. Minnesota Statutes, Section 203B.121, provides that the absentee ballot board may include staff trained as election judges. Because the absentee ballot board must accept or reject absentee ballots in such a timely fashion, it is imperative that City Staff be appointed to the absentee ballot board to process the absentee ballots during the 30 days prior to the special elections. Charlene Finberg and Maria Rosenbaum are the City Staff listed in the resolution to serve on the absentee ballot board. I've also listed myself as a backup. Minnesota Statutes, Section 204B.21, subd. 2, requires election judges be appointed by the governing body at least 25 days before the election at which the election judges will serve. A resolution is included that lists individuals who have applied to serve as an election judge for the special elections. Budget Issues: There is no cost in the appointment of the election judges; however, the cost for their service as election judges will be approximately $6,300 per election. Mission: Ensuring an attractive., clean, safe community that enhances the quality of life and preserves the public trust Member introduced the following resolution and moved its adoption: • RESOLUTION NO. RESOLUTION APPOINTING ELECTION JUDGES TO SERVE IN SPECIAL ELECTIONS WHEREAS, Governor Mark Dayton issued a Writ of Special Election to fill the vacancy in the office of State Senator for Senate District 46 and of a special primary to nominate candidates for the special election, due to the passing of Senator Linda Scheid on June 15, 2011; and WHEREAS, the special election will be held on Tuesday, October 18, 2011, and a special primary, if necessary, will be held on Tuesday, September 13, 2011; and WHEREAS, Minn. Stat. 204B.21, subd. 2, requires that persons serving as election judges be appointed by the City Council at least 25 days before the election at which the election judges will serve, except that the City Council may appoint additional election judges within the 25 days before the election if the City Council determines that additional election judges will be required. BE IT RESOLVED by the City Council of the City of Brooklyn Center that the individuals named below and on file in the office of the City Clerk be appointed to perform the • duties of election judge and/or be appointed as the. Brooklyn Center Absentee Ballot Board election judges. BE IT FURTHER RESOLVED that the City Clerk is authorized to make any substitutions or additions as deemed necessary. Alyson Arneson Kelly Herrmann Diane Olson Karen Bolstad Mary Ann Hilger Riggs Opland Bill Bruneau Joyce Hogetvedt Eileen Oslund Kenneth Bueckers Ray Hokenson Bev Rieschl Charles Calhoun Jeanne Huff Rita Roehrl Esther Connolly Lynne Johnston Larry Rolf David Erickson Nahid Khan Maria Rosenbaum Charlene Finberg Kermit Klefsaas Thomas Schommer Don Gillquist Sharon Knutson Elaine Spencer Trudi Gores Mary Laduke Clayton Thiebault Carolyn Green Mavis Lammi Mary Thiebault Darlene Gregornik Ginny Lebus Sam Totimeh Allan Hancock Glenard Lieder Sarah Wilks Gilbert Hartlage Donna Martin Jacquelina Heckard Lorraine Moe • RESOLUTION NO. August 8, 2011 Date Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member and upon vote being taken thereon, the following voted in favor thereof and the following voted against the same: whereupon said resolution was declared duly passed and adopted. City Council Agenda Item No. 6f 1 • COUNCIL ITEM MEMORANDUM DATE: August 5, 2011 TO: Curt Boganey, City Manager FROM: Sharon Knutson, City Clerk SUBJECT: Application and Permit for Temporary On-Sale Liquor License Submitted by City of Lakes Nordic Ski Foundation for an Event to be Held at Surly Brewing Company, 4811 Dusharme Drive,Brooklyn Center, on September 10,2011 Recommendation: It is recommended that the City Council consider approval of the application and permit for temporary on-sale liquor license submitted by City of Lakes Nordic Ski Foundation for an event to be held at Surly Brewing Company, 4811 Dusharme Drive, on September 10, 2011. Background: City of Lakes Nordic Ski Foundation has submitted an application and permit for temporary on- sale liquor license for an event to be held at Surly Brewing Company, 4811 Dusharme Drive, on September 10, 2011. The applicant has satisfied the City's requirements, submitted the $25 fee for each day of the license, along with a certificate of coverage for liquor liability insurance, and has existed as a • non-profit organization for at least three years. The applicant will meet with the Police Department to review and discuss parking, safety, and security issues. After Council review, the application and permit will be forwarded to the Minnesota Department of Public Safety Alcohol and Gambling Enforcement Division for approval. City Ordinance Section 11-107 (6) Temporary On-Sale Intoxicating Liquor License. This license may be issued only upon receiving the approval from the Commissioner of Public Safety. The license may be issued only in connection with a social event within the city that is sponsored by a club or charitable, religious, or other nonprofit organization that has existed for at least three years or to a brewer who manufactures fewer than 3,500 barrels of malt liquor in a year. The license may authorize the sale of intoxicating liquor to be consumed on the Premises for not more than three consecutive days, and the City shall issue no more than twelve days' worth of temporary licenses to any one organization or for any one location within a 12-month period. The temporary license may authorize the sale of intoxicating liquor to be consumed on Premises other than Premises the licensee owns or permanently occupies. The temporary license may provide that the licensee may contract for intoxicating liquor catering services with the holder of an On-Sale Intoxicating Liquor License issued by any municipality. Budget Issues: There are no budget issues to consider. • !Mission:Ensuring an attractive,clean,safe community that enhances the quality of life,and preserves the public trust 5vr/ �� Minnesota�epartment of Public Safety ALCOHOL AND GAMBLING ENFORCEMENT DIVISION • 444 Cedar Street Suite 222,St.Paul MN 55101-5133 (651)201-7500 Fax(651)297-5259 TTY(651)282-6555 WWW.DPS.STATE.MN.US APPLICATION AND PERMIT FOR A I TO 4 DAY TEMPORARY ON-SALE LIQUOR LICENSE TYPE OR PRINT INFORMATION NAME OF OR , NIZATION �J DATE ORGANIZED T/A/X/EXEMPT NUMBER dJA IT� 0 -STREEI ADDRESS CITY STATE ZIP CODE n NAME OF PERSQN MAKING APPLICATION BUSINESS PHONE HOME PH . �y� vx ar � � di, cr (eta) S'R DATES LIQUOR WILL BE SOLD ' TYPE OF ION CLUB CHARITTA RELIGIOUS OTHER NONPROFIT ORGANIZATION OFFICER'S NAME ADDRESS d4 iob Ive 5,�O,-,lq , � �: ltl ly ORGANIZATION OFFICER',S NAME ADDRESS / �! � o9_7011,✓Pryr ✓� 7 L r' �0 a� C sfi yn ORGANIZATION OFFICER'S NAME ADDRESS Location license will be used. If an outdoor area,describe ' j r ewe eve"fl al Ik 112 6741 Ur llit� - y��/j/ ci,,dl�drvr�P GCP.Yd 15 ( ®1!491( 610 �eou t Will the applicant contract fo intoxi ating liquof-service? If so,give the name and address of the liqu r licensee providing the service. Will the applicant carry liquor liabili JP surance? If so,please provide the carrier's name and amount of coverage. APPROVAL APPLICATION MUST BE APPROVED BY CITY OR COUNTY BEFORE SUBMITTING TO ALCOHOL&GAMBLING ENFORCEMENT e/ OUNTY 9mDOwN _ DATE APPROVED CITY FEE AMOUNT • LICENSE DATES DAIrf FEE PAID i SIGNATURE CITY CLERK OR COUNTY OkFICIAL APPROVED DIRECTOR ALCOHOL AND GAMBLING ENFORCEMENT NOTE:Submit this form to the city or county 30 days prior to event. Forward application signed by city and/or county to the address above. If the application is approved the Alcohol and Gambling Enforcement Division will return this application to be used as the License for the event PS-09079(12/09) City of Brooklyn Center 6301 Shingle Creek Pkwy, 55430-2199 • (763) 569-3300 Account No. 10100-4201 Temporary On-Sale Liquor License Application Addendum License Fee of$25 per day must be submitted to City Clerk with application Temporary Liquor License Fees are Non-Refundable Application Must Be Submitted 55 Days Prior to Event; City Council Approval Required Pursuant to City Code Section 11-107,Subdivision 6: The license may be issued only in connection with a social event within the city that is sponsored by a club or charitable,religious,or other nonprofit organization that has existed for at least three years. Information on C ntact gPrson:Name: /1'1Gt/ y � � (First,Middle, and Last) /, Q Address:159'5- ..T✓,i F o�Jt� �l1 �i 9I �!o �rT� /R,- (Street, City, and Zip Code) (Home felephone Number) (Work Telephone Number) Information on Event: Name of Event: Location of Event: d-4404w e P11we &9oK M 461 5�r`l Z (Street, City, and Zip Code) • Dates(s) and Time(s) of Event Pate Start time of event End time of event Day 1 From: Z a.m. .m To: •,3 p a.m./ .m. Day 2 From: a.m. m. To: a.m./ .m. Day 3 From: a.m./ .m. To: a.m./ .m. Day 4 1 From: a.m./ .m. To: a.m./ .m. Security for Event (explain in detail how you will ensure no unde ages es or consumption, how the area will be secured, i.e. by fence, rope,barricade) l � A1,; Y�S 61 ./1 W"// %� d ;( Ad /i'3 u-ilel h P wi / Q 62o al Pl/ w,//J 11A d� �� � g lea AA w,• / �� ee ' 'qu i rerfent: Brooklyn Center requires proo f of $300 000 dram sho p liquor liabilit y Ins r n insurance with the City of Brooklyn Center named as an additional insured. This should be in the form of a certificate of insurance. However, if your event is being held on City property, such as a City park, you are required to have proof of $500,000 dram shop liquor liability insurance with the City of Brooklyn Center named as an additional insured. Information is collected t to ine eligibility for license. Failure to provide information requested may result in denial p c n. • Signature: Date: ZD! City Council Agenda Item No. 7a DECLARING AUGUST 20, 2011, TO BE BROOKDALE CHEVROLET DAY WHEREAS, On August 20, 2011, General Motors Executives will come to Brooklyn Center to meet the community and recognize the accomplishments of Brookdale Chevy Dealership; and WHEREAS, Brookdale Chevy is one of a very small number of dealerships in the United States ofAmerica singled out for this recognition; and WHEREAS, Brookdale Chevy is a member of the Luther Automotive group of auto dealerships; and WHEREAS, Luther Automotive is an outstanding corporate citizen of Brooklyn Center exhibited in many ways including the following: new dealership construction, corporate giving to community service organizations, active participation of employees in community affairs, and exceptional support of the Brooklyn Center Centennial Celebration. NOW, THEREFORE, I, AS MAYOR OF THE CITY OF BROOKLYN CENTER, State of Minnesota, with the consent and support of the Brooklyn Center City Council, do hereby proclaim August 20, 2011, to be Brookdale Chevrolet Day in the City of Brooklyn Center. August 8, 2011 Date Mayor Council Members ATTEST.• City Clerk City Council Agenda Item No. 8a COUNCIL ITEM MEMORANDUM DATE: August 2 2011 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business and Development L. SUBJECT: Resolution Approving Modification of Tax Increment Financing Plan for Tax Increment Financing District No. 2 and Modification of the Redevelopment Plan for Housing Development and Redevelopment Project No. 1. Recommendation: It is recommended that the following the public hearing that the City Council consider ado n Financing Plan adoption/approval royal of he Resolution Approving Modification of Tax Increment p s g PP g PP for Tax Increment Financin g District No. 2 and Modification of the Redevelopment Plan for Housing Development and Redevelopment Project No. 1. Background: On June 27, 2011, the City Council adopted Resolution No. 2011- 97, which set a public hearing for August 8, 2011 to consider an amendment to the Tax Increment Financing Plan for Tax Increment Financing District No. 2 that includes the following components: 1 The amendment restates and clarifies the revenues and disbursements of the original plan and the 1991 amendment and formally amends the Finance Plan to address line item changes of the 2004 the administrative budget amendment. 2. The amendment acknowledges the Tax Increment District 2 Spending Plan, as authorized by the 2010 Minnesota Jobs Bill and approved b the City Council and EDA on April 28, 2011 PP Y Y p and June 27, 2011, 3. The budget amendment will enable the use of the 2011 Tax Increment to fund the following eligible tax increment activities: - $150,000 for the Brooklyn Boulevard Corridor Transportation Study, - $350,000 for property acquisitions, - $170,000 for public improvements, including intersection improvements, street lighting, and streetscaping, and - $60,000 for other EDA authorized Transportation/Land Use Studies. 4. The amendment provides a TIF 2 budget that would allow the EDA to reinvest the repayments of the TIF District 2 Spending Plan inter -fund loan for the following future public improvements: - the Brooklyn Boulevard Corridor, - the 57 Ave. Corridor, and /or - the Humboldt Ave. Corridor. Mission: Ensuring an attractive, clean, safe community that enhances the duality of life and preserves the publictrust COUNCIL ITEM MEMORANDUM Tax Increment District No. 2 • Tax Increment District No. 2 was established in 1985 as a Redevelopment District to remedy conditions of economic obsolescence, physical blight, under utilization of land, extensive soil i corrections which the private sector has not been willing or able to accomplish and correction of numerous traffic hazards and pedestrian conflicts. In 1991, the District's Finance Plan was amended to include additional TIF budget allocations to the following line items: - Land/Building Acquisitions - Installation of Public Utilities - Parking Facilities - Streets and Sidewalks - Social, Recreation & Conference ( an eligible activity prior to 2000) In 1994, the District's project area was enlarged to include the geographic boundaries of the city and the following additional objectives were added: • To enhance the tax base of the City. • To provide maximum opportunity, consistent with the needs of the City, for redevelopment by private enterprise. • To better utilize vacant or undeveloped land. • To attract new businesses. • • To acquire blighted or deteriorated residential propriety for rehabilitation or clearance and redevelopment. • To develop housing opportunities for market segments underserved in the City, including housing for the disabled and elderly. I A 2001 Legislative amendment: provided for the Duration Limit of a District to be 25 years from the date of receipt by the authority of the first tax increment (469.176, subd. lb (a) (4) (Supp. 2001). The decertification of this district was adjusted to December 31, 2011. In 2004, the EDA adopted Resolution No. 2004 -13 which approved an administrative amendment to the Tax Increment Financin g Plan for Tax Increment Financing (Redevelopment) District which reallocated the $53,774,537 budget. The attached Modification/Amendment to Tax Increment District No. 2 has been prepared by the City's Financial Consultant, Springsted Incorporated; and has been designed to provide the EDA tax increment to promote economic of available with the opportunity ' to maximize the use o p A e velvp.—.,.eiit/redeveiopment and in, inty COM111 "Unity's infrastructure. The plans have been distributed to Hennepin County and ISD No. 286. • i o life a nd reserves the public trust a the coal t enhances r e community tha P Mission: Ensuring an attractive, clean sa mm P g l y COUNCIL ITEM MEMORANDUM • Budget Issues: The 2011 Tax Increment revenue from TIF District No. 2 is projected to be approximately $856,000 of which $ 399,576.99 has been received from the 1S half tax distribution. The repayment of the TIF 2 inter -fund loan from the Shingle Creek Crossing Development is shown on the TIF 5 Projected Cash Flow and Debt Repayment Spreadsheet to begin in 2022, after the PAYG Promissory Note and other potential in district expenditures have been satisfied. This debt repayment schedule is dependent on the construction schedule and the new assessed valuations (captured tax increment) of the Shingle Creek Crossing Project. However, the EDA has the authority to restructure the debt repayment schedule and could expedite the repayment of the TIF 2 inter -fund loan as an option to additional TIF 5 in- district expenditures or the timing of their repayment. Attached for your reference is a copy of this spreadsheet. Beginning in 2012, the captured tax capacity of $528,888 from Tax Increment District 2 will be returned/added to the base tax capacities of all of taxing jurisdictions. Council Goals: • Strategic: 2. We will aggressively proceed with implementation of City's redevelopment plans Ongoing: 2. We will ensure the financial stability of the City. Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust Commissioner introduced the following resolution and • moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING MODIFICATION OF TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO.2 AND MODIFICATION OF THE REDVELOPMENT PLAN FOR HOUSING DEVELOPMENT AND REDEVELOPMENT PROJECT NO. 1 BE IT RESOLVED by the Board of Commissioners of the Brooklyn Center Economic Development Authority (the "Authority ") as follows: Section 1 Recitals 1.01 It has been proposed that the Authority modify the Tax Increment Financing Plan for Tax Increment Financing District No. 2 (the "Tax Increment Financing District") pursuant to and in accordance with Minnesota Statutes, Sections 469.001 through 469.047 (the "HRA Act "), as amended, and Minnesota Statutes, Sections 469.174 through 469.1799, inclusive, as amended (the "TIF Act"), and modify the existing redevelopment plan (the "Redevelopment Plan ") for Housing Development and Redevelopment Project No. 1 (the "Project Area"). 1.02 The Authority has investigated the facts and has caused to be prepared the following • (a) Modification No. 3 to Tax Increment Financing Plan for Tax Increment Financing District No. 2 (A Redevelopment District) and (b) Modification to Redevelopment Plan for Housing Development and Redevelopment Project No. 1. 1.03 The Authority has performed all actions required by law to be performed prior to the modification of the Redevelopment Plan and the Tax Increment Financing Plan, including, but not limited to, notification of the Hennepin County Commissioner representing the area of the County in which the Tax Increment Financing District is located, and transmitting a copy of the modification to the Tax Increment Financing Plan to Hennepin County and Independent School District Districts Nos. 286 (Brooklyn Center) and 281(Robbinsdale), which have taxing jurisdiction over the property included in the Tax Increment Financing District. 1.04 The City Council held a public hearing on August 8, 2011, on the adoption of the modification to the Tax Increment Financing Plan and the modification of the Redevelopment Plan, made the findings required by the TIF Act and approved the modification of the Tax Increment Financing Plan and the adoption of the modification to the Redevelopment Plan. Section 2. Finding for the Modification of the Redevelopment Plan. The Authority hereby finds that the modification of the Redevelopment Plan is intended and, in the judgment of the Authority, its effect will be to provide an impetus for redevelopment activities associated with better utilizing blighted, polluted and underutilized land and enhancing the tax base of the City of Brooklyn Center (the "City "), in an effort to provide an ongoing benefit to residents in the City and to • otherwise promote certain public purposes and accomplish certain objectives as specified in the • Redevelopment Plan. The Authority hereby reaffirms the original findings for the Project Area and the Redevelopment Plan. Section 3. Findinas for the Modification of the Tax Increment Financing Plan The Board of Commissioners hereby finds that the modification of the Tax Increment Financing Plan is intended and, in the judgment of the Board of Commissioners, its effect will be, to carry out the objectives of the Redevelopment Plan by (i) creating an impetus to undertake redevelopment activities associated with fulfilling a need to redevelop an area of the City which is already built up, blighted, polluted or underutilized, (ii) helping in the preservation and enhancement of the tax base of the City and the State, (iii) promoting the construction of high quality commercial and industrial facilities, and (iv) otherwise promoting certain public purposes and accomplishing certain objectives as specified in the Tax Increment Financing Plan, as modified, and thereby serves a public purpose. Section 4. Approval of the Modification of Tax Increment Financing Plan and Modification of Redevelopment Plan. 4.01 The adoption of the modification to Tax Increment Financing Plan and the modification of the Redevelopment Plan are hereby approved and the modification to the Tax Increment Financing Plan and the modification of the Redevelopment Plan shall be placed on file at the City Hall. 4.02 The staff of the Authority is hereby directed to file a copy of the modification to Tax Increment Financing Plan and modification of Redevelopment Plan with the County ,Auditor of • Hennepin County. The staff of the Authority is also directed to file a copy of the modification to Tax Increment Financing Plan and modification of Redevelopment Plan with the Commissioner of Revenue. Auizust 8, 2011 Date President The motion for the adoption of the foregoing resolution was duly seconded by Commissioner and upon vote being taken thereon, the following voted in favor thereof and the following voted against the same: whereupon said resolution was declared duly passed and adopted. • Brooklyn Center Economic Development Authority, Minnesota Modification to Redevelopment Plan for Housing Development and Redevelopment Project No.1 And Modification No. 3 to Tax Increment Financing Plan for Tax increment Financing District No. 2 (A Redevelopment District) Within Housing Development and Redevelopment Project No.1 • (Earle Brown Farm Project) Dated: July 21, 2011 (Final) Modification Approved: August 8, 2011 (scheduled) Original Plan adopted July 22, 1985 Modification No.1 adopted February 1, 1991 Modification No.2 adopted April 25, 1995 (Project Area modified) Prepared by: SPRINGSTED INCORPORATED 380 Jackson Street, Suite 300 St. Paul, MN 55101 -2887 (651) 223 -3000 WWW..SPRINGSTED.COM • • Introduction The purpose of this Modification No. 3 t the Tax Increment Financing Plan for Tax Increment Financing District No. 2 is to make adjustments to the Estimated Project Costs and Estimated Revenue Sources_ This modification increases the overall spending of a TIF on l y " bud the original and previously modified P 9 " ° et Y 9� p Y budgets included non -TIF revenues and assumed spending). The sections specifically being modified are the Acquisition Plan, Estimated Project Costs, Revenue Sources and Impact on Taxing Jurisdiction. This modification does not reflect all the legislative changes that have occurred since original adoption, and may not reflect fully the financial ramifications of all the TIF and property tax system changes. Furthermore, this modification includes the estimated fiscal and economic implication of the tax increment financing district, as modified; which was not a requirement when the Original TIF Plan for TIF District No. 2 was adopted. TABLE OF CONTENTS • Section Page(s II I Section I Definitions .................. .............................. ......... ................... ....... ...........................1 Section II Modification to Redevelopment Plan for Redevelopment Project ............. ......... ..............................2 Section I LA Statement and Finding of Public Purpose............. .............................. ............................... 2 Section 11.13 Statutory Authorization ........................... ...................................... ............................... 2 Section I LC Statement of Objectives ...... ............................... ........................... ............................... 2 Section III Modification of TIF District No. 2 .................... .............................. ........ ..............................3 Section I ILA Acquisition Plan .... ......... ............................. ............................. ............................3 Section I11.B Estimated Project Costs ..................................... ............................... ........................... 3 Section IILC Estimated Revenue Sources .............................................................. ..............................4 Section IILD Impact on Taxing Jurisdiction ................. ......... ............................. ...........................6 Exhibit I: Map of Project Area and TIF District .................. .............................. ........ ..............................7 • Brooklyn Center Economic Development Authority, Minnesota • Section I Definitions The terms defined in this section have the meanings given herein, unless the context in which they are used indicates a different meaning: "Authori " means the Economic Development Authority in and for the City of Brooklyn Center. "City" means the City of Brooklyn Center, Minnesota; also referred to as a "Municipal ity" "City Council" means the City Council of the City; also referred to as the "Governing Body" "County" means Hennepin County, Minnesota. "EDA Act" means Minnesota Statutes, Section 469.090 to 469.108, inclusive, as amended. "HRA Act" means Minnesota Statutes, Section 469.001 to 469.047, inclusive, as amended. "Redevelopment Plan" means the Redevelopment Plan for the Redevelopment Project. "Redevelopment Project" means Housing Development and Redevelopment Project No. 1 in the City, which is described in the corresponding Redevelopment Plan. "Project Area" means the geographic area of the Redevelopment Project. "School District" means Brooklyn Center School DistrIcVISD No. 286, Minnesota. • State" means the State of Minnesota. "TIF Act" means Minnesota Statutes, Sections 469.174 through 469.1799, both inclusive. "TIF District" means Tax Increment Financing District No. 2. "TIF Plan Modification" means Modification No. 3 to the tax increment financing plan for the TIF District (this document). _Springsteci Page 9 Brooklyn Center Economic Development Authority, MInnesota Section II Modification to Redevelopment Plan for Redevelopment Project The following text represents a Modification to the Redevelopment Plan for Redevelopment Project No. 1: This modification represents a continuation of the goals and objectives set forth in the Redevelopment Plan for Redevelopment Project No. 1. Generally, the substantive changes include the modification of the estimated public costs and estimated revenues source for or the TIF ' District. The Estimated Public Costs is modified to include those set forth in Section IILB of the TIF Plan Modification and the Estimated Revenue Sources is modified to include those set forth in Section 111 C of the TIF Plan Modification. For further information, a review of the Redevelopment Plan for Redevelopment Project No. 1 is recommended and is available from the City of Brooklyn Center. Other relevant information is contained in the Tax Increment Financing Plan for Tax Increment Financing Districts No. 1, No. 2, No. 3, No. 4, and No. 5 located within Redevelopment Project No. 1. A map of Redevelopment Project No. 1 is shown in Exhibit L Section ILA Statement and Finding of Public Purpose On April 25, 1994, the City Council and Authority expanded the geographic boundaries of the Earle Brown Farm Redevelopment Project to include Housing Development Project No. 1 and other properties and provided additional housing powers. The modified redevelopment project is renamed Housing Development and Redevelopment Project No. 1. The Authority intends to use the powers allowed under the EDA Act and HRA Act to promote development and redevelopment through the City and to pool resources in order to reduce financial barriers to providing decent housing • and employment opportunities.. Section ILB Statutory Authorization On August 24, 1987, the City Council authorized the establishment of the Brooklyn Center Economic Development Authority (Authority). Pursuant to City Council Resolution No. 87 -170, the Authority has and may exercise all of the powers conferred by law upon a Housing and Redevelopment Authority. The Authority has been authorized by the City to carry out all powers of and administer all projects initiated by the Brooklyn Center HRA. The Authority established Housing Development and Redevelopment Project No.1 pursuant to the EDA Act and the HRA Act. HRA Act authorizes the Authority to exercise all the powers relating to a housing and redevelopment authority granted under Minnesota Statutes, Sections 469.001 to 469.047, or other law. Within the City areas exist where public involvement is necessary to cause redevelopment to occur. The Authority has certain statutory powers pursuant to the TIF Act to assist in financing eligible activities related to these redevelopment i needs. Section ILC Statement of Objectives The sampling of the general goals and objectives of the Redevelopment Plan are listed below: • To provide decent, safe and sanitary housing for persons of low and moderate income. • To provide governmental assistance to eliminate slum and blight. • To provide an ongoing benefit to the residents of the City and those who may frequent the area. • To enhance the tax base of the City. pringsted Page 2 Brooklyn Center Economic Development Authority, Mlnnesota i ■ To provide maximum opportunity, consistent with the needs of the City, for development by private enterprise. ■ To better utilize vacant or undeveloped land. This modification of the estimated public costs for TIF District No. 2 will ensure a continuation of the FDA's goals and objectives of the Project Area that result in increased opportunities for commercial development and will otherwise benefit the health, safety, morals and welfare of the residents of the City. Section III Modification of TIF District No. 2 Section III.A Acquisition Plan The 2 nd modification of Tax Increment Financing District No. 2 expanded the project area by combining the Earle Brown Farm Redevelopment Project and the Housing Development Project No. 1 into the Housing Development and Redevelopment Project No. 1. A copy of the map of the project area is included in Exhibit I and indicates the boundaries of TIF District No. 2. The 2 °d modification authorized that the City may acquire any parcel located in Housing Development and Redevelopment Project No. 1 (Project Area). We restate this authorization and include additionally authorization for the EDA to acquire any property within the Project Area. The EDA intends to acquire property within the Project Area to further Redevelopment Plan objectives including acquisition of any necessary right of way in connection with the projects listed in Section II I.B below. Section 111.13 Estimated Project Costs The estimated project costs are based solely upon those projects involving expenditures on the part of either the City • or EDA. Table I shown on page 5 includes the estimated project costs to be paid for or financed with tax increments, as modified. ANTICIPATED DEVELOPMENT EXPECTED TO OCCUR AFTER JUNE, 2011 The estimated project costs detailed in Table I include the following added projects: • EDA land purchases within Project Area • Brooklyn Boulevard Corridor Transportation /Land Planning Study • EDA authorized Transportation /Land Use Studies • Intersection improvements, Street Lighting and Streetscape improvements • Public improvements in and around Brooklyn Boulevard Corridor; 57th Avenue Corridor, and Humboldt Avenue Corridor • Jobs Bill Projects (amended, originally authorized in April, 2011): o D -Barn pedestrian link project o Shingle Creek Crossing redevelopment project (including assistance to purchase Midas property) o Environmental remediation /redevelopment of Howe Fertilizer Site The Authority reserves the right to administratively adjust the amount of any of the items listed in Table I or to incorporate additional eligible items, so long as the total estimated project costs to be paid for or financed with tax • increments is not increased. rin seed page 3 Brooklyn Center Economic Development Authority, Minnesota Section III.0 Estimated Revenue Sources The primary revenue source for financing the estimated project costs will be tax increment revenue. Also available for the acquisition of the Earle Brown Farm are Community Development Block Grant Funds and land sales. Only expenditures from land sales have been included in the estimated project costs detailed above (the Community Development Block Grant funds have been removed). The original estimated captured value for the district was based on development completed and fully assessed by 1991. In addition to the capture of the increment for new development, it was anticipated that additional increment would be obtained for increased values, both new and existing development, during the life of the district. It was assumed that assessed values would increase at three (3) percent annually. Addendum B -6 in the Original Plan included the revenue expenditures schedule which included the projected tax increment revenue based on the redevelopment assumptions. The total tax increment projected in this addendum is $29,771,527. The City has been reporting a budget of $6,025,848 which was included in the original plan in Addendum B -5 (budget) as an amount of tax increment bond proceeds to finance project costs; however the total increments included in Addendum B -6 is the estimated amount of tax increments that would be collected through the projected term of the district. Table I shown on the following page includes the estimated tax increment revenues, as modified. • Srirsgstecl Page 4 Brooklyn Center Economic Development Authority, Minnesota • Section ction III.D Impact on Taxing Jurisdiction The Original TIF Plan included two tables with the mill rates and net annual affect upon the various taxing entities, below these tables are updated to include the Pay 2011 tax rates and impacts, which is the final year of the TIF district (25 years after the first year of receipt of increment). Taxing Jurisdiction Tax Rates Captured Tax Increment Pay 1985 Pay 2011 Pay 1985 Pay 2011* City of Brooklyn Center 16.506% 58.558% $140,152 $309,706 Brooklyn Center School Dist #286 49.332% 47.697% $420,088 $252,264 Hennepin County 29.262% 45.840% $249,392 $242,442 Miscellaneous 6.671% 9.740% $57,221 $51,514 Totals 101.771% 161.835% $866,853 $855,926 * The estimated tax increment per taxing jurisdiction for Pay 2011 is calculated by multiplying the tax rate by the captured tax capacity of $528,888 (reported by Hennepin County). The fiscal and economic implications of the tax increment financing district, as modified, are shown below, For the estimated amount of tax increments attributable to the school district and county levies, Pay 2011 is all that is included as the final year of the TIF district. 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' �IllQpuuuUlp � mij motion J Housing Development and Redevelopment Project No. 01 and Tax Increment Financing District No. 2 U UU) Z � n � W JAMES IR. N. z Community Center TE NIAL CITY PAR HALL / / DR. MIT HENNEPIN CO. LIBRARY & �// GOVT. SERVICE CENTER � / u ° ry GRANDVIE EARLE PARK rn BROWN SCHOOL V w z Q > ° J / W z m w 58T N. G / Z z • Lklyn Center GIS 0 500 1,000 2,000 Feet Legend H,Zminp Cme °n. p<xnsv TIF -2 Parcels a^ .. moG o so e :< G W E -M o,M° uwam N.q <= ..; o °a ,�z ®Central Commerce District Exhibii Vlll Shingle Creek Crossing TIF District Projected TIF District Cash Flow and Debt Repayment REVENUE EXPENDITURES Annual Calendar Projected Tax Admin Exp Pay -As -You Go Note Payments Projected Intertund Loan Repayments Reimb Other Pooled Exp Surplus/ Year Ending Incremer.t (TI) 10% TI Principal Interest Total P &I Principal Interest Total P &I Indistrict Exp 10% TI (Deficit) (1) (2) (3) (4) (5) (6) (7) (8) (9) (1 0) (1 1) (12) 12/31/2011 0 0 0 0 0 0 0 0 12/3112012 0 0 0 0 0 0 0 0 12/31/2013 7,264 726 0 6,538 6,538 0 0 0 12/31/2014 302,214 30,221 0 271,993 271,993 0 0 0 12/31/2015 751,570 75,157 335,491 340,922 676,413 0 0 0 12/31/2016 839,895 83,990 391,857 112,080 503,937 0 251,969 (0) 12/31/2017 839,895 83,990 415,721 88,215 503,937 0 251,969 (0) 12/31/2018 839,895 83,990 441,039 62,898 503,937 0 251,969 (0) 12/31/2019 839,895 83,990 467,898 36,039 503,937 0 251,969 (0) 12/31/2020 839,895 83,990 247,994 7,544 255,538 0 0 0 500,367 0 12/31/2021 839,895 83,990 0 0 0 0 0 0 755,905 0 12/31/2022 839,895 83,990 0 516,905 516,905 239,000 0 12/31/2023 839,895 83,990 0 556,243 556,243 199,662 0 12/31/2024 839,895 83,990 381,390 174,852 556,243 199,662 0 12/31/2025 839,895 83,990 475,498 80,744 556,243 199,662 0 12/31/2026 839,895 83,990 494,518 61,724 556,243 199,662 0 12/31/2027 839,895 83,990 514,299 41,944 556,243 199,662 0 12/31/2028 839,895 83,990 1 1 534,294 1 21,372 1 555,666 1 199,662 1 577 11,979,683 1,197,974 2,300,000 926,228 3,226,228 2,400,000 1,453,784 3,853,784 2,503,146 1,197,974 (2) Projected Tax Increment revenue is net of State Auditor deduction of 0.36% (3) Administrative Expenditure is 10% of annual revenue in column (2) (4), (5), (6) Pay As You Go Note Payments represent payments on principal amount of $2.3M accruing interest at 6 %, unpaid interest accrues without interest Available increment to service pay -go is 90% in the first 3 years (2013- 2015), 60% thereafter until retired (7), (8), (9) - Anticipated repayment to City /Authority for interfund loan of $2,400,000 for land acquisition, assumed interest rate is 4 accruing from 1213112011 (10) The TIF Plan authorizes an approximate $1.831M of additional indistrict expenditures, amount shown includes interest repayment of $671,455 (11) Pooled Expenditure is delayed until indistrict expenditures are complete, to total 10% of total tax increment (TI) in column (2) (12) The annual surplus /(deficit) subtracts totals in columns (3), (6), (9), (10) and (11) from the Tl Revenue in column (2) If expenditures in col. (10) & (11) do not occur, but the projected revenue in col. (2) and debt of $2.3 M and $2.4 M each occur as projected, the district could close in year underlined (2023), 5 years prior to statutory decertification. The available funds in the district would retire the pay -as- you -go note and repay the Intertund Loan early. p"rincjsi 2 • �23 Public Sector Advisors ----------------- MEAN- f � Q Sprinqsted '. City of BROOKLYN CENTER Public Hearing to consider Modification of TIF No. 2 Budget Changes City Council Meeting August 8, 2011 PRESENTER: Jenny Wolfe, Senior Project Manager Public Sector Advisors � Springsted i Tax Increment Financing District No. 2 TIF District established in 1985 in Earle Brown Redevelopment Project • TIF Plan budget increased in 1991 modification • Expanded project boundaries in 1994 to coincide with Housing Development & Redevelopment Project No. 1 (TIF Plan modification) Administrative amendment completed in 2004 Public Sector Advisors z Springsted FA Tax Increment Financing District No . 2 • Completed Developments include: — Earle Brown Center (portion for Embassy Suites removed from District) — Redevelopment of the Earle Brown Terrace and Earle Brown Commons Senior residential projects — Multiple retail buildings ............ Public Sector Advisors 4 Springsted Current Status of TIF No . 2 9 No existing obligations (GO bonds repaid in 2004) • No spending activity (other than debt) since early 90's • December 31 , 2010, fund balance of -$2,900,000 Projected 2011 increment of -$858,000 (final year) • Recent Jobs Bill authorization (temporary spending of TIF balance) for Shingle Creek Crossing, D-Barn and Howe Site • EDA advanced TIF No. 2 funds to be repaid , requires budget authority to spend Public Sector Advisers Springsted Proposed Modification of TIF No . 2 • 1 Adjustments to Estimated Project Costs and Estimated Revenue Sources Increases overall spending of a TIF only budget (original and previously modified budgets included non-TIF revenues & assumed spending) • Specific sections modified: — Acquisition Plan, — Estimated Project Costs, — Revenue Sources, and — Impact on Taxin g Jurisdiction • Modification includes estimated fiscal and economic implication of the TIF district, as modified (not a requirement when Original TIF Plan was adopted) Public Sector Advisors Springsted Anticipated Projects 0 0 0 0 EDA land purchases — properties within Project Are. Brooklyn Boulevard Corridor Transportation/Land Planning Study Intersection improvements, Street Lighting and Streetscape improvement projects EDA authorized Transportation/Land Use Studies Public Sector Advisors El Springsted i Anticipated Projects (Cont' d) • Public improvements in and around Brooklyn Boulevard Corridor, 57th Avenue Corridor, and Humboldt Avenue Corridor • Jobs Bill Projects (amended, originally authorized in April, 2011 ): — D-Barn pedestrian link project — Shingle Creek Crossing redevelopment project (including assistance to purchase Midas property) — Environmental remediation/redevelopment of Howe Fertilizer Site Public Sector Advisors 8 Springsted Map of Project Locations * z P L TR�I, 0 ON 4 i HUMBOLDT r SQUARE NORTH NORTH HENNEPIN 1690-94 . $HINGLECREEK HUMBOLDT AVE. HWY'ZS2 EXISTING)TRAIL OPPORTUNITIES f Miss RI 1 7CENTER s ? i BROOKLYN BLVD. CORRIDOR QPPORTUNITES 4 OPPORTUNITY SITE POTENTIAL TRAIL CONNECTION CNORT�.� � HBROOK POTENTIAL REDEVELOPMENT -BROOKDALE h -94 City of Brooklip Cntor Figure 2-1 Planning Issues Legend SCI-4C Clya Ctrntcr E.,stxty T-1 9!*0 Trill c*nn4,ctiDns cil mt-hy s 1w Q—ktlale N—hb—!, H—beldt 6quam ���������C:onicbrC�ywsritutrleT e.vuky„91.1 Hum bWdt M®. 571h a rd Lyr d.l.45— 1,600 600 0 1,600 Feet w.r !wr � �Ttrw >exrxr111.1� r errrx 1030 romprohm"r prax $SOCIATES. Public Sector Advisors 9 .` SpringSted Budget Modification TIF No . 2 (A) (B) (B) - (A) City Reported Adjusted Mod Budget Orig Plan '85 Mod Feb'91 Mod Feb'91 Aug, 2011 Change Estimated Project Costs (1) Land/building acquisition 1,570,000 2,260,000 2,260,000 2,563,179 303,179 Site improvement/prep costs 0 0 0 30,000 30,000 Utilities 0 200,000 200,000 740,612 540,612 Other public improvements 3,501,900 12,685,000 12,685,000 17,093,810 4,408,810 Administrative costs 513,248 628,300 628,300 1,263,401 635,101 Transfer Out: Jobs Bill Spending 0 0 0 3,010,000 3,010,000 Total Estimated Project Costs 5,585,148 15,773,300 15,773,300 24,701,002 8,927,702 Est. Financing Costs - Interest Exp 5,918,870 13,665,170 13,665,170 9,868,877 (3,796,293) TOTAL SPENDING 11,504,018 29,438,470 29,438,470 34,569,879 5,131,409 (6) Estimated Tax Increment Revenues Tax increment rev dist from County (2) 29,771,527 6,025,848 29,771,527 24,390,000 (5,381,527) Interest and investment earnings 0 400,000 400,000 2,403,400 2,003,400 Sales/lease proceeds 650,000 650,000 650,000 865,927 215,927 Market value homestead credit 0 0 0 0 0 Transfers In/Other (3) 0 0 0 3,040,552 3,040,552 Loan/Advance Repayments (4) 0 0 0 3,870,000 3,870,000 Total Est. Tax Increment Revenue 30,421,527 7,075,848 30,821,527 34,569,879 3,748,352 Total Revenue Less Expenditures 18,917,509 (22,362,622) 1,383,057 0 (1,383,057) Total Amount of Bonds To Be Issued (5) 6,025,848 16,679,709 16,679,709 1 16,679,709 0 Public Sector Advisors 10 Springsted Notes to Budget Modification 1) Estimated Project Costs to be paid for or financed with tax increment 2) Tax Increment total from Addendum B-6, total of 20 years in Original Plan. City finance reports $6,025,848 (only the increment to pay back principal shown in Addendum B-5 (budget) of the original plan) 3) Not on State's new form. Includes transfer in of $3,029,169 (from TIF No. 1) and "other" of $11 ,383 4) Not on State's new form. Includes loan/advance repayments that are classified as tax increments 5) No change to maximum amount of bonds to be issued. o City issued three series of bonds (Series 1985A-$5,250,000, Series 1991A-$6,050,000, Series 1992A-$4,270,000) and executed an interfund loan ($7,782,743) that they booked as "loan proceeds. o Second and third series of bonds were refunding bonds, and should not result in an increase to the amount of bonded indebtedness o Second series (Series 1991A-$6,050,000) repaid a portion of the interfund loan; and o Third series (Series 1992A-$4,270,000) refunded the outstanding Series 1985A bonds 6) Although the budget amendment shows an increase in spending, the overall spending based on the Feb', modification is actually reduced when you account for two factors: 1) $3,010,000 of Jobs Bill spending (d( not require plan authorization to spend); and 2) $3,870,000 of spending of loan repayments. When subtracting the total of these two amounts - $6,880,000, the spending is actually $1 .71VI less. Public Sector Advisors i i R"—r"M Springsted TIF District Spending • $29,438,470 - Authorized spending — Feb. 91 modification • $26,814,439 - Total spending through 2010 • $34,569,879 - Total budgeted spending with proposed modification • $7,755,440 - Available authorized spending with modification* *Spending allowed beyond 2011 provided sufficient budget authority Public Sector Advisors $pPlflCJSt2d Estimated Spending • Land/building acquisition - $350,000 • Site improvement/prep costs - $30,000 for EDA property creek/forestry Other Public improvements - $4,090, 000 — $120,000 for Shingle Creek Watershed — $170,000 for Street Lighting/Streetscaping/Intersection improvement projects — $3,800,000 for Brooklyn Blvd Corridor, 57th Ave Corridor, Humboldt Ave Corridor with TIF No. 5 loan repayments Public Sector Advisors �„ � Springsted Estimated Spending (Cont' d) • Administrative Costs - $275440 — $65,440 for administrative expenditures while TIF spending/receiving of repayments continues — $150,000 for Brooklyn Boulevard Corridor Transportation Study — $60,000 for EDA Authorized Transportation/Land Use Studies • Transfer Out: Jobs Bill Spending - $3,010,000 — $340,000 for D-Barn — $2,400,000 for Shingle Creek Crossing — $190,000 for Midas, — $80,000 for Howe Site • Total Spending - $7,755,440 Public Sector Advisors Springsted TIF District Revenue • $30,821 ,527 - Authorized revenue — Feb. 91 modification 9 $29,714,092 - Total revenue through 2010 9 $34,569,879 - Total budgeted revenue with proposed modification • $4,855,787 - Additional authorized revenue with modification Public Sector Advisors 15 a Springsted � Estimated Revenue • Total Additional revenue with modification - $4,855,787 — Tax increment revenue distributed from County* - $858,553 — Interest and investment earnings - $127,234 — Loan/Advance Repayments - $3,870,000 � e Plus Available Fund balance - $2,899,653 • Total Revenue - $7,755,440 (to match total spending) * Includes rounding Public Sector Advisors 16 Spfillgsted Impact on Taxing Jurisdictions • Original TIF plan included two tables with the mill rates and net annual affect upon the various taxing entities • Next slide shows updated tables to include the Pay 2011 tax rates and impacts • Pay 2011 is the final year of the TI F district (25 years after the first year of receipt of increment) Public Sector Advisors [] 5pringsted s I Impact on Taxing Jurisdictions (Cont' d) { Taxing Jurisdiction Tax Rates Captured Tax Increment Pay 1985 Pay 2011 Pay 1985 Pay 2011* City of Brooklyn Center 16.506% 58.558% $140,152 $309,706 Brooklyn Center School Dist #286 49.332% 47.697% $420,088 $252,264 Hennepin County 29.262% 45.840% $249,392 $242,442 Miscellaneous 6.671% 9.740% $57,221 $51 ,514 Totals 101.771% 161.835% $8669853 $855,926 * The estimated tax increment per taxing jurisdiction for Pay 2011 is calculated by multiplying the tax rate by the captured tax capacity of $528,888 (reported by Hennepin County). 4 f E 2 Public Sector Advisors S rin sted Fiscal and Economic Implications Total estimated amount of tax increment that will be generated over the life of the district is $24,390,000; • Estimated amount of tax increments for Pay 2011 - — attributable to the school district levy is $252,264 — attributable to the county levy is $242,442 • Pay 2011 is all that is included as the final year of the TIF district • No expected city service impacts Hub iic Sector Advisors Q Springsted Calendar of Events/Next Steps • City Council calls for August 8, 2011 public hearing (June 27, 2011 ) • County Commissioner notification letter (delivered June 28, 2011 ) Impacts and draft plan modification distributed to County and School District (delivered July 7, 2011 ) • City Council Work Session (July 11 , 2011 ) • Publication of notice of hearing (July 23, 2011 ) • City Council public hearing / EDA Meeting (August 8) to authorize TIF Plan modification Public Sector Advisors 20 Spf Ingsted Questions Jenny Wolfe , Senior Project Manager 651 -223-3085 Springsted Incorporated 380 Jackson Street, Suite 300 Saint Paul , MN 55101 -2887 %.biic Sector Advisors El Springsted AGENDA CITY COUNCIL/ECONOMIC DEVELOPMENT AUTHORITY WORK SESSION • August 8, 2011 Immediately Following Regular City Council and EDA Meetings Which Start at 7:00 P.M. Council Chambers City Hall A copy of the full, City Council packet is available to the public. The packet ring binder is located at the front of the Council Chambers by the Secretary. ACTIVE DISCUSSION ITEMS 1. Public Art Discussion 2. Presidential Invite — Councilmember Roche PENDING LIST FOR FUTURE WORK SESSIONS Later /Ongoing 1. Progress Reports on Achievement of Strategic Goals 2. School District Discussions/BC Strategic Plan Report 3. Sister City Update 4. Active Living Program • 5. Annual Department Year End Reports 6. Graduated Sanitary Utility Rate Study — August 22 7. Garbage Hauler Organized Collection Update — October 8. Youth Participation Request - October 9. Neighborhood Designations — December 10. Highway 252 Update— 2012 I i • Work Session Agenda Item No. 1 • MEMORANDUM - COUNCIL WORK SESSION . DATE: August 8, 2011 TO: Curt Boganey, City Manager FROM: Gary Eitel, Director of Business & Development Brian Peters, Police Commander SUBJECT: Allowance of Public Art on State Sound Walls Recommendation: It is recommended that the City Council provide direction to staff regarding the approval of public art on a sound wall. Background: Staff has received a request to paint an artistic mural along the sound wall between Highway 100 and Earle Brown Elementary School. This sound wall has been subject to repeat graffiti and vandalism. The Brooklyn Center School District in conjunction with Mentoring Peace Through Art is proposing to paint a mural on the wall facing the school with the intention of preventing further vandalism. Another project goal is to promote student, parent and community involvement as they participate in planning and painting the mural. Prior to painting the wall, Minnesota Department of Transportation requires a resolution from the P q City approving the mural and a permit for Miscellaneous Work on Trunk Highway Right of Way. The permit would be submitted by Brooklyn Center School' District. The following is a summary of the proposed public art project: • The wall is approximately 1400 feet long by 8 feet high. The mural would extend along this whole area. • The wall is located behind Earle Brown Elementary School, extending to the City- owned property. Please refer to the attached location map. • The mural would reflect a quilt pattern style that was designed by the students based on previous art work. No words would be used or offensive images. Please refer to the attached photo for an example. Mentoring Peace Through Art has produced many designs like this around the metropolitan area. Some examples include the Hopkins Arts Building, Cristo Rey Jesuit High School and walls at 381h Ave. S. Bloomington Ave. S. and Lake Street/ Clinton Ave. S. • The costs of labor and materials for the mural project would be assumed by the school district and other private funds. • Any required maintenance of the mural would be the responsibility of the school district and Mentoring Peace Through Art. The existing sound wall would need some preparation prior to painting, which would be completed by Mentoring Peace. Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust MEMORANDUM - COUNCIL WORK SESSION Policy Issues: • •:' What are the regulations pertaining to this request? Is this mural considered a sign? ❖ How will this type of public art affect the image of the city? Le. Reduction of graffiti versus aesthetics and message of murals. Where and under what circumstances should murals of this type be allowed? I.e. State sound walls What precedent, if any, will approval of this project set? Council Goals: Ongoing: 5. We will improve the image of the City with citizens and others Attachments: Location Map - Photos • • Mission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust MEMORANDUM - COUNCIL WORK SESSION Attachment- Location Map The red line indicates the location of the sound wall. t *, 00 i i t Mission: Ensuring an attractive, clean, safe comet di j that enhances the qualih of fife and preserves the public trust MEMORANDUM - COUNCIL WORK SESSION Attachment II: Photos r 1. 1. N ' a i, y, i Mission: Ensuring an attractive, clean, safe community that enhances the qualio� of life ant/preserves thepublic trust �`, . _ ���; �-�� � i y� . � � � �wJ �� ;. y+ YAI'-x �, I �, F . i • ®� �:� C T t ti r, -,:- • � 1 M '4s•I- , � - 4 � r • I I PUBLIC ART DISCUSSION II! / OT Sound Wall Earle Brown School ) illii I li I i Ill II II ii 1 I I 111 III 1 i II III I'Il Ii.I(IIIlill X11 IIIIfIIi II it i I I I III 1 I II t 111, call 11„6u '� ��!i„I 1 IU1 U1 I i i i i �lllll!I��I�IIII�IIIInI�IIIIIB�II��IIiI�IIIi I�11��II�I�lI�1��I�IIII��Ili��illlPll�lnl����nn��ii 1111!nni�i ili�lli�nlnl111�1�1����i°°°I°°�................................. .......... Ci* Council Work Session August S , 2 O 11 MIIIII,"!""0 ----------- o �C� ° CEO� � a ❑ The Brooklyn Center School District in conjunction with Mentoring Peace Through Art is proposing to paint a mural on the wall facing the school with the intention of preventing further vandalism. ❑ Another project goal is to promote student, parent and community involvement as they participate in planning and painting the mural. ❑ Minnesota Department of Transportation requires a resolution from the City approving the mural and a permit for Miscellaneous Work on Trunk Highway Right of Way. ❑ The permit would be submitted by Brooklyn Center School District • m MnDOT SOUND ��. WALL (red solid line) �1.''�,a.�• - �� ,�f + .s� ��c.. dl' r �.: ter`. 1,o o o feet adjoins ; `' .• ,° ' Y T 14 `� Earle Brown Elementary f adjoins 415 feet Grand View Park /. . 7 A W J �► g & +1i.7 �• �1d._n r+s c�+ ,S�lcsaos MnDOT Wall — Hwy loo (Outside) View n MnDOT Wall — Inside View w/ Trail A14610 d .I y �' '`r -f, ) �IH :I ,N •i-ire �.. �' 2q � _ - Ow L_ Ilk Al r r •I ` f i.. 07121 /2Q �9 �B IMF n ienmtl'rn;�ilmr m mnwf^nmq�m n111M1"n;n71Bn11pItlroP`I➢itlln,�l�nrylry�m11m1 ?` Trail Connector into Earle Brown Elem. k ... . , i ni ,i,iu,u w ur iuii,;i ,o uuu ,i uuuiwuu ry p nill��llii �U�Iiin��rnittiitn���tli�Il��ii����i���iIIIIlIll1 41111'li'ilii�llllllllll°1'JIJ�III!0P�!fl iplliPll4i�'iiilii'1II1!p!1������l.�lf��9 �'r�" ,d a ".�*• .'4&'k `> s> fx#Yom»', . ,A In _,_ (ill iu,.nll6:�ua 11 i.e.6iWUtu im.iii tif,i ltl nn - N. ku l.,niAtN II !ti Nt IU tIU IIIIIIUlt 111111 UtlUIU 411tItU{IN 1 U 111111{I. I..........1111 Ilf 1 11111 i t 11 IiUi i itiWl,l ItA Il li ' mo�rn�mnimumiiimmm�mmmmmioo�oimmonuou�imnm �"' " )Illllllll��lll�lill�lillllllllll�l�ll�)III�II�III�I>�1111111��II�llll�ll���lll�ll>Il���ll�llll�l�l�l�nlll�ll��� Interior Wall w/ Cleaned Areas Field Fencing ,a y 1 N tiE. Amy � vZOr, ,�A a*. snwui Y i EAST WEST 694' TO X94, ',694) .�. Humboldt Ave 07/2112011 Iii -A• r. ir IFT, w S � fit t w e r � • t `mod` � - ; •t, # owt. f t�l"Q,,t it i F' Tt 16 . .i ` ,•1 ��� it �- 4. _ i L} it ;'•,, £ '•'� >t!,''�� .'4, S,r �R �a�` � �i�•.. �' y „fit* 'G � `���'�;. v '^ 11: W r 1. �. •,. +� , ��� t '•,r � �.� �. is .0 r nui I iil i ! ti lli I�llil�lllll llllllllll�llll�l�l��lllllll)lllllllll�lllll�lllllllllllllllllllllllllllll��III��I�I�I��IIII�j�II��IIII��IIIII����j���j���IhIIIIIII111IIIII11111111111111I11nO1h1�11 IIIInllnln1111111111111➢Illlllllp111B11 � � SIGN ORDINANCE Sign — Any publicly displayed message-bearing device for visual communication or any attention attracting device that is used primarily for the purpose of bringing the subject thereof to the attention of the public including any banner, pennant, symbol, valance or similar display. Section 34-130. PROHIBITED SIGNS. 2. Signs within the public right-of-way or easement; provided, however, that the following signs in the public right-of-way or easement are not prohibited: a. government installed signs. b. signs denoting an architect, engineer, contractor, or owner meeting the requirements of Section 34-140.2.d. c. campaign signs meeting the requirements of Section 34-140.2.f. d. real estate signs meeting the requirement of Section 34-140.2.1. 1 . e. rummage sales signs meeting the requirements of Section 34-140.2.m. f. noncommercial opinion or expression signs meeting the requirements of Section 34-140.2.n NI I h 1 I I ! ! I 1 I !{ I I 111 I I I R 11 RE, PROHIBITED SIGNS (Continued) 11 . Off-Premises Advertising Signs except as otherwise permitted by Section 34-140 and Section 35-800 of the City Ordinances. Signs advertising a business no longer operating on the premises shall be deemed off-premises advertising signs and must be abated in accordance with Section 34-140. 1 .j. 12. Signs painted directly on building walls. 13. All other signs not expressly permitted by this ordinance. NO gn defined or regulated in the Ordinance is of TE: Public Art or similar i nu i i ii iili uulu ui�u�wu ii liti �� i II ui i � � I���I �,��lil,��I,�III,�,�i,l�r II Ilq�lq"Il�„�I!IIPIIIhlh1l'llll!Ih C{II1118111111�"'4P'9�111�11➢Ililhlil��ii��lll��»!�9(�i�lli iiiu'ai�iiiiii�»>�»iiiui�iiuumiiiiiiiom�itiiii!iiomoir�m�r�iiirllirii,i lul,�i i �� ,�I I' �(; ,, •v The mural would reflect a quilt pattern style that was designed by the students based on previous art work. No words would be used or offensive images. The following photo provides an example. ❖ Mentoring Peace Through Art has produced many designs like this around the metropolitan area. Some examples include: • the Hopkins Arts Building; • Cristo Rey Jesuit High School; and • walls at 38th Ave. S. /Bloomington Ave. S. and Lake Street/ Clinton Ave. S. ❖ The costs of labor and materials for the mural project would be assumed by the school district and other private funds. ❖ Any required maintenance of the mural would be the responsibility of the school district and Mentoring Peace Through Art. The existing sound wall would need some preparation prior to painting, which would be completed by Mentoring Peace. mot. triz�# it bJO Y arrP '_ �"�r #�'�..�e ..� �� �; said'• *'F' ,. �, !�»� '�. y n; .. ti i 5 l^jJ V J 11 Illpllllllllllllllllllllllnlllllll1111111111111111�Il f�IIIIIII IIIn11111111111111111111111111111111111111101>Illllllllllln�llllll�lllll�lllll�l�������u�����n�������n��������p�����n111111101�����n°1°0011x100°° � "' . V r t i Brighten the future of Brooklyn Center! ,loin Mentoring Peace Through Art and Brooklyn Center community leaders as we paint the sound ~gall behind Earle Brown School with images of children's art and imagination, while at the same time 'blacking out gang graffiti. Bring your family, friends, and neighbors to fill in the bright future of your city. Visit our web site or call Lis for more details on the project: Mentoringpeace.ora 952-935-4717 .AliA di0.it letiiltl tlt9N X118;I iilf @ II I I I I II I 1�II NA41 UII 1;IU OOillil I I; �l l�II t1111I III! A{11111 Iiu �illl UI lltll l l�l 11 l 11 II 11 tII iii .I III 11 I I 11 a II i 11 I � ' IIIIIII�II��IIIIIIIIIIIIIIInIIl011�IIIIIIIII�IdI�IIInI�I�I�IIIII�InIIIIIIIIIIIIIII�III��1011111nlllllllllllllllllllllllllll�llll�IIII@���noiimnmiimmim�amommmiinamim�mmi�niiiinii»miim �j ��, Polic y Issues : What are the regulations pertaining to this request? Is this mural considered a sign? How will this type of public art affect the image of the city? (i.e. reduction of graffiti versus aesthetics and message of murals.) ❖ Where and under what circumstances should murals of this type be allowed? (i.e. State sound walls) ❖ What precedent, if any, will approval of this project set? Work Session Agenda Item ' No. 2 • • MEMORANDUM - COUNCIL WORK SESSION • DATE: August 4, 2011 TO: Mayor Willson and Council Members Kleven, Lasman, Roche, and Ryan FROM: Curt Boganey, City Manvoo SUBJECT: Invitation to President Obama Recommendation: It is recommended that the City Council consider providing direction to staff regarding a draft letter inviting President Obama to the city of Brooklyn Center. Background: The City Council has previously directed Staff to prepare a letter inviting President Obama to the city. I've enclosed a draft letter that we will review at the Work Session. Based upon your input and direction, we will prepare the final letter for the Mayor's signature. • Rlission: Ensuring an attractive, clean, safe community that enhances the quality of life and preserves the public trust • August 8, 2011 President Barack Obama The White House 1600 Pennsylvania Avenue NW Washington, DC 20500 Dear President Obama: On behalf of the City f Brooklyn Center I would like to cordially invite you to visit our City. Y Y � Y Y In many ways, we represent the All American City. We are a first -ring suburb of Minneapolis with a diverse population of 30,000. This year, the City celebrates its 100 years of incorporation with a year -long community celebration. Although we are experiencing some of the same challenges as other cities in our country, we are also successfully meeting goals in the spirit of strategy, innovation and dedication. A few reasons to visit us include: ➢ The Regional FBI Field Office is under construction with completion anticipated in February 2012. It will meet the new federal design standards. ➢ Federal stimulus funds were used to help maintain infrastructure as well as stimulate economic development through our Bass Lake Road Streetscape project. Other aspects incorporated into the project included livable community features such as trails, pedestrian areas and safety. ➢ Along the Bass Lake Road Streetscape project, an 800,000 square foot redevelopment project is underway, one of the few retail development projects to occur in the metropolitan area within the past three years. ➢ Our community has been recognized many years for citizen engagement programs, from National Night Out events to our Multicultural Resource Programs. ➢ Innovative approaches based on Four -Step Foreclosure Strategy are helping to revitalize the neighborhoods through maintenance efforts, home purchase programs and Neighborhood Stabilization Preservation programs. Our motto A Great Place to Start, a Great Place to Stay is a befitting description of the City of Brooklyn Center. We would be honored by your visit and would be excited to provide a tour of our City. For more information, please contact me at (763) 569 -3300 or mayorwillsonnci .brooklyn- center.mn.us Respectfully, Mayor Tim Willson •