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HomeMy WebLinkAbout2000-205 CCRMember Kay Lasman introduced the following resolution and moved its adoption: RESOLUTION NO. 2000-205 RESOLUTION APPROVING AGREEMENT FOR RELEASE OF DEFICIENCY, ASSESSMENT, AND CONTRACT FOR PRIVATE DEVELOPMENT AGREEMENTS RELATING TO LOT 2, BLOCK 1, BROOKLYN FARM SUBDIVISION WHEREAS, APEX Asset Management Corporation has entered into a purchase agreement for the properties located at 6200 Shingle Creek Parkway and 6160 Summit Drive in Brooklyn Center; and WHEREAS, the property located at 6160 Summit Drive (Lot 2, Block 1, Brooklyn Farm Subdivision) is the subject of a Minimum Assessment Agreement, Contract for Private Development, and a Deficiency Agreement all dated December 19, 1985; and WHEREAS, the building located at 6160 Summit Drive has a high vacancy level and requires a substantial investment to bring its occupancy levels and value up and APEX Asset Management Corporation proposes to make a substantial investment in upgrading both buildings; and WHEREAS, City of Brooklyn Center Resolution 2000-188 authorized the execution and delivery of two supplemental indentures of trust relating to two series of refunding revenue bonds subject to a satisfactory settlement of all obligations arising under the Minimum Assessment Agreement, Contract for Private Development, and a Deficiency Agreement all dated December 19, 1985; and WHEREAS, the current owner of 6160 Summit Drive, Brookdale Associates Limited Partnership, has proposed entering into an agreement providing a process to determine their liability under Minimum Assessment Agreement, Contract for Private Development, and a Deficiency Agreement all dated December 19, 1985. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the Mayor and City Manager, on behalf of the City of Brooklyn Center be and hereby are authorized to enter into a Termination Agreement with Brookdale Associates Limited Partnership, such Termination Agreement to provide for the termination of all obligations imposed on Lot 2, Block 1, Brooklyn Farm Subdivision arising out of Minimum Assessment Agreement, Contract for Private Development, and a Deficiency Agreement all dated December 19, 1985, upon such terms and conditions as will provide for a payment to the City of Brooklyn Center and/or the Housing and Redevelopment Authority in and for the City of Brooklyn Center of that sum of money representing the maximum payment for past, present, and future deficiency payments as allowable under the Minimum Assessment Agreement, Contract for Private Development, and a Deficiency Agreement all dated December 19, 1985, that would be allowable under applicable federal tax laws RESOLUTION NO. 2000-205 without impacting the tax exempt status of bonds issued by the City of Brooklyn Center, Housing and Redevelopment Authority in and for the City of Brooklyn Center, and/or the Economic Development Authority in and for the City of Brooklyn Center, but in any event such obligation of the current owner should not be more that $335,000, with such agreement providing for a mechanism using recognized bond counsel to resolve any factual or legal issues in determining the amount that Brookdale Associates Limited Partnership must pay, if any, under the agreements. November 27, 2000 Date ATTEST: J41 0,V f a R6x l ~ ft" "Aj City Clerk ~ 4~ Mayor ILIPJY- The motion for the adoption of the foregoing resolution was duly seconded by member Ed Nelson and upon vote being taken thereon, the following voted in favor thereof: Myrna Kragness, Debra Hilstrom, Kay lasman, Ed Nelson, and Robert Peppe; and the following voted against the same: none; whereupon said resolution was declared duly passed and adopted.