HomeMy WebLinkAbout2020 09-14 EDAPE conomic Development
Authority
V I RT UA L meeting being
conducted by electronic
means in accordance with
Minnesota S tatutes, section
13D.021 P ublic portion
available for connection by
dialing 1-312-535-8110
A ccess Code: 1337911584
S eptember 14, 2020
AGE NDA
1.Call to Order
The City Council requests that attendees turn off cell phones and pagers during the meeting. A
copy of the full C ity Counc il packet, including E D A (E conomic Development Authority ), is
available to the public. The packet ring binder is located at the entrance of the council
chambers.
2.Roll Call
3.Approval of Consent Agenda
The following items are considered to be routine by the Economic Development Authority (E D A)
and will been acted by one motion. There will be no separate disc ussion of these items unless a
Commissioner so requests, in whic h event the item will be removed from the c onsent agenda
and considered at the end of Commission Consideration I tems.
a.Approval of Minutes
- Approve the minutes from the August 24, 2020 meeting
4.Commission Consideration Items
a.Resolution A pproving the Purchase A greement Development A greement and
Conveyance of Certain P roperty to C A lan Homes, L L C
- Motion to:
open the public hearing;
take public input; and
close the public hearing
- Moti on to adopt a resol uti on approving a purchase agreement and devel opment
agreement and conveyance of certain property to C Alan Homes, LLC
5.Adjournment
Economic Development Authority
DAT E:9/14/2020
TO :C ity C ouncil
F R O M:C urt Boganey, City Manager
T H R O U G H :N/A
BY:Barb S uciu, C ity C lerk
S U B J E C T:A pproval of Minutes
B ackground:
I n accordance with M innesota S tate S tatute 15.17, the official records of all mee6ngs must be documented
and approved by the governing body.
B udget I ssues:
- None
S trategic Priori es and Values:
O pera6onal Excellence
AT TA C H M E N TS :
D escrip6on U pload D ate Type
M inutes 9/8/2020 Backup M aterial
08/24/20 -1- DRAFT
MINUTES OF THE PROCEEDINGS OF THE
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF BROOKLYN CENTER
IN THE COUNTY OF HENNEPIN AND THE
STATE OF MINNESOTA
REGULAR SESSION
AUGUST 24, 2020
1. CALL TO ORDER
The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to
order by President Mike Elliott at 8:23 p.m. The meeting was conducted via Webex.
2. ROLL CALL
President Mike Elliott and Commissioners Marquita Butler, April Graves, and Dan Ryan.
Commissioner Kris Lawrence-Anderson was absent and excused. Also present were Executive
Director Curt Boganey, Deputy City Manager Dr. Reggie Edwards, Assistant City Engineer Andy
Hogg, City Clerk Barb Suciu and City Attorney Troy Gilchrist.
3. APPROVAL OF AGENDA AND CONSENT AGENDA
Commissioner Graves moved and President Elliott seconded to approve the Agenda and Consent
Agenda, and the following item was approved:
3a. APPROVAL OF MINUTES
1. August 10, 2020 – Regular Session
Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
4a. RESOLUTION NO. 2020-09 AUTHORIZING STAFF TO PROCEED FORWARD
WITH THE BC BEYOND COVID COMMUNITY FOOD COLLECTIVE
(GREENHOUSE) PILOT PROJECT, WHICH WILL BE FUNDED BY
ECONOMIC DEVELOPMENT AUTHORITY WITH AVAILABLE CASH
RESERVES
Deputy City Manager Reggie Edwards reviewed the proposed BC Beyond Covid Community
Food Collective, an initiative aimed at helping residents and businesses survive, rebuild and thrive.
He added the initiatives are proposed to address multiple needs in the community.
Assistant City Engineer Andy Hogg stated the proposed Community Food Collective is an
initiative to provide the community with healthy food, education and jobs. The main areas of focus
08/24/20 -2- DRAFT
for this initiative would be a City-created greenhouse; healthy and culturally appropriate foods;
food distribution; education; training; relationship building; and employment. City Staff have met
with Hennepin County, CEAP and African Family Community Services to discuss planning and
implementation of this initiative.
Mr. Hogg stated the proposed location for the year-round green house is the City Hall campus, and
requests for construction cost estimates have been requested from local builders. The City would
buy garden towers and plants and would be responsible for food production and distribution. The
total budget of $115,000 would include $50,000 for materials and construction, and City Staff are
working on developing additional cost estimates. Local groups have been contacted to find out
what culturally appropriate foods should be grown, and job opportunities and training for residents
is being discussed, along with a tool library, flexible “pay what you can” membership model and
potential solar power and stormwater collection cistern.
Mr. Hogg stated City Staff requests City Council approval of a resolution authorizing staff to
proceed with BC Beyond Covid Community Food Collective (Greenhouse) pilot project, to be
funded by the EDA with available cash reserves.
Mayor Elliott stated composting could be considered for inclusion as a service. He added other
local communities have community composting sites.
Dr. Edwards stated the initiative addresses the need for food and food stability in the community;
health conditions and improvements; provision of fresh product for people who have difficulty
accessing affordable healthy food. He added this will also address the issue of income as food is
produced and provided to families. He noted this multi-faceted approach will address multiple
needs in the community, now and in the future.
President Elliott moved and Commissioner Graves seconded to adopt RESOLUTION NO. 2020-
XX Authorizing Staff to Proceed Forward with the BC Beyond Covid Community Food Collective
(Greenhouse) Pilot Project, which will be Funded by Economic Development Authority with
Available Cash Reserves.
Motion passed unanimously.
5. ADJOURNMENT
Commissioner Ryan moved and Commissioner Graves seconded adjournment of the Economic
Development Authority meeting at 8:40 p.m.
Motion passed unanimously.
Economic Development Authority
DAT E:9/14/2020
TO :C ity C ouncil
F R O M:C urt Boganey, City Manager
T H R O U G H :
BY:M eg Beekman, C ommunity D evelopment D irector
S U B J E C T:Res olu+on A pproving the P urchas e A greement D evelopment A greement and Conveyance
of C ertain P roperty to C A lan H omes, L L C
B ackground:
The Economic D evelopment A uthority of Brooklyn C enter (E DA ) currently owns eight parcels of land
located along Brooklyn Boulevard. The proper+es are addres s ed 6025, 6031, 6037, 6045, 6921, 6927,
6933, and 6939 Brooklyn Boulevard. The E DA acquired the parcels between 2008 and 2019. The
proper+es are s plit between two sites . The s outhern s ite is on the 6000 block of Brooklyn Boulevard and is
compris ed of 1.65 acres. The northern s ite is on the 6900 block of Brooklyn Boulevard and is .98 acres in
s iz e.
The E DA has been proac+vely acquiring single family proper+es along withe corridor for the purpos e of
cons olida+ng access points and assembling parcels for redevelopment into higher intensity land uses .
The proper+es are currently under considera+on to be rez oned to P U D -N M U from a mix of single family
and commercial z oning. The second reading on the rezoning is s cheduled for the S eptember 14 C ity C ouncil
mee+ng. Under the future land use guidance of the 2040 Comprehensive P lan, the proper+es are within the
Brooklyn Boulevard O verlay D istrict, which calls for special a@en+on at the +me of redevelopment for the
cons idera+on of increased densi+es and a wider range of uses more aligned w ith the Neighborhood M ixed-
Use land use designa+on w hich gives an allowance for a mix of medium dens ity residen+al or commercial
us es depending on the loca+on and lot s iz e on the parcels in the corridor.
At the June 8, 2020, E DA mee+ng the E DA approved a preliminary development agreement (P DA ) w ith C
A lan H omes based on their proposal to cons truct 13 triplex units on the parcels. At that mee+ng the E DA
asked the develop to explore ways to include affordability into the development and directed staff to work
w ith the developer to include affordable units into the project.
At the A ugust 13, 2020 P lanning C ommis s ion mee+ng, the C ommis s ion recommended approval of a
preliminary and final plat, s ite and building plan review, and P U D rezoning for the project. The P lanning
Commission added a condi+on of approval that the 7 affordable units proposed by the developer be
dis pers ed throughout the buildings and unit types . At the A ugus t 24, 2020 C ity C ouncil mee+ng, the C ouncil
approved the preliminary and final plat, site and building plan, and firs t reading of the P U D rez oning. The
Council als o confirmed the condi+on added by the P lanning Commission related to the affordability
placement of the units in the development.
The C ity C ouncil is s cheduled to hold a public hearing and cons ider the second reading of the P U D rez oning
at their S eptember 14 mee+ng.
C ost of C ity Requirements
I n order to iden+fy an appropriate land value for the sale of the parcels, s taff asked the C ity's financial
cons ultant, Ehlers to provide an analysis on what the impact of the inclus ion of the affordable units w ould
be on the opera+ng revenue of the project over +me, discounted to current value.
Ehlers provided a memo explaining their analysis, w hich is a@ached to this report.
The project w ould s et as ide 7 units for S ec+on 8 Voucher holders, making thos e units available to families
making below 30% A M I . The program s ets a maximum prevailing market rent that can be charged and the
voucher holders pay no more than 30% of whatever income they earn. The state then covers the remaining
por+on of rent up to the maximum prevailing market rent through the voucher. Becaus e the project
an+cipates rents higher than the prevailing market rent, the s et as ide units will reduce the gross income of
the development. O ver a 12 year period this reduced income amounts to a loss of $292,814 dis counted to
pres ent value.
The C ity is als o requiring the developer to ins tall an es+mated $11,506 of public improvements related to
the Brooklyn Boulevard road project.
The affordability requirement is codified within a development agreement that is a@ached to the purchase
agreement and w ill be recorded agains t the property as a deed restric+on.
Land S ale P rice
Ehlers review s land sales for projects throughout the region. Mul+family developments typically as s ess land
value on a per unit basis. Medium dens ity rental hous ing developments projects should be able to pay
between $5,000 and $15,000 per unit for land based on a number of factors . Those factors include loca+on
in the market, the cost of development, and the dens ity and type of product. Bas ed on thes e factors in this
case, Ehlers determined that this development w ould expect to pay a land s ale price at the low er end of this
range; betw een $5,000 and $9,000 per unit, or a total of $195,000 to $351,000 would be a reas onable
assump+on.
G iven the es+mated excess costs to the project are w ithin the land valua+on range achievable in the market,
the propos al is for the E DA to write down the land value for the developer to meet the E DA requirements.
Ehlers analysis supports this course of ac+on as reas onable to achieve the affordability goals of the project.
A lterna+ve op+ons would be to reduce the number of years the affordability is required or to reduce the
number of set-as ide units in the project.
The E DA acquired the parcels for a total of $921,205.80 using T I F 3 H ous ing F unds. These funds w ill needs
to be repaid to the T I F 3 hous ing fund upon resale or trans fer of the parcels . The s ource of funds to be
trans ferred w ould be T I F 3 funds . U pon trans fer, those funds w ould be available to be used city-wide to
s upport the crea+on and preserva+on of affordable housing in the city.
P urchase A greement
T he purchase agreement includes a reverter clause which requires the developer to have completed construc+on
of all buildings within eighteen (18) months of closing on the property. I f the developer has not been able to
achieve the substan+al comple+on within this +me period, a 30-day no+ce will be given. AJer the 30-day no+ce,
if the development is s+ll not in compliance, the E DA will have the right to re-enter and re-take possession of the
property.
B udget I ssues:
T I F 3 funds will be us ed to reimburse T I F 3 H ous ing funds for the acquis i+on costs of the parcels.
S trategic Priori es and Values:
Targeted Redevelopment
AT TA C H M E N TS :
D escrip+on U pload D ate Type
M emo from Ehlers dated S eptember 8, 2020 9/8/2020 Backup M aterial
Res olu+on 9/8/2020 Resolu+on Le@er
P urchas e A greement 9/8/2020 Backup M aterial
A ffordable H ous ing D eclara+on 9/8/2020 Backup M aterial
# of Units Type Rent Type Rent Per Unit Difference Total Monthly
Income Difference
10 Market Rent $1,850
3 Sec. 8 Payment Standard $1,650
11 Market Rent $2,050
2 Sec. 8 Payment Standard $1,650
11 Market Rent $2,250
2 Sec. 8 Payment Standard $1,650
($2,600)
($31,200)
($292,814)Present Value (over 12 years @ 4%)
Garden level
(3 BR)($200)($600)
Main level
(3 BR)($400)($800)
2nd level
(3 BR)($600)($1,200)
Monthly Income Difference
Annual Income Difference
Commissioner introduced the following resolution and
moved its adoption:
EDA RESOLUTION NO. 2020-______
RESOLUTION APPROVING A PURCHASE AGREEMENT AND
CONVEYANCE OF CERTAIN PROPERTY TO C ALAN HOMES LLC
BE IT RESOLVED by the Board of Commissioners (“Board”) of the Economic
Development Authority of the City of Brooklyn Center, Minnesota (“Authority”) as follows:
Section 1. Recitals.
1.01. The Authority is authorized pursuant to Minnesota Statutes, Sections 469.090 to
469.1081 (the “EDA Act”), to acquire and convey real property and to undertake certain
activities to facilitate the development of real property by private enterprise.
1.02. On June 8, 2020, the Authority entered into that certain Preliminary Development
Agreement with C Alan Homes LLC (“C Alan Homes”) to allow C Alan Homes to explore the
possibility of acquiring the property owned by the Authority that is legally described on the attached
Exhibit A (the “Property”) for development of 13 triplex housing units (the “Preliminary
Development Agreement”).
1.03. To facilitate development of the Property in accordance with the Preliminary
Development Agreement, the Authority proposes to enter into a Purchase Agreement (the
“Contract”) between the Authority and C Alan Homes under which, among other things, the
Authority will convey the Property to Coalition.
1.04. The Authority has on this date conducted a duly noticed public hearing regarding the
sale of the Property to Coalition, at which all interested persons were given an opportunity to be
heard.
1.05. The Authority finds and determines that conveyance of the Property to Coalition is
in the public interest and will further the objectives of its general plan of economic development,
because it will provide an opportunity for increased housing opportunities in the City and serve as
an impetus for further development.
1.06. In addition, the term of the Preliminary Development Agreement expires on
December 31, 2020.
Section 2. Authority Approval; Further Proceedings.
2.01. The Board hereby approves the Contract in substantially the form presented to the
Board, including conveyance of the Property to C Alan Homes, subject to modifications that do not
alter the substance of the transaction and the approval of the Authority’s Attorney.
2
2.02. Authority staff and officials are authorized to take all actions necessary to perform
the Authority’s obligations under the Contract as a whole, including without limitation execution of
any documents to which the Authority is a party referenced in or attached to the Contract, and any
deed or other documents necessary to convey the Property to C Alan Homes, all as described in the
Contract.
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.
3
EXHIBIT A
Legal Description of the Property
Lots 1-7, Block 1, Robertson and Brekke’s Brooklyn Boulevard First Addition and Lots 1-6, Block 1,
Robertson and Brekke’s Brooklyn Boulevard Second Addition, according to the recorded plats
thereof, County of Hennepin, State of Minnesota
Dispersed
1
PURCHASE AND DEVELOPMENT AGREEMENT
1. Parties. This Purchase and Development Agreement is made as of this ____ day of
September, 2020 between the ECONOMIC DEVELOPMENT AUTHORITY OF THE
CITY OF BROOKLYN CENTER, MINNESOTA, a Minnesota body corporate and
politic having its office located at: 6301 Shingle Creek Parkway, Brooklyn Center, MN
(“Seller”) and C. ALAN HOMES, LLC, a Minnesota limited liability company having its
office located at: 5215 Terraceview Lane No., Plymouth, MN 55446 (“Buyer”).
2. Offer/Acceptance. Buyer offers to purchase and Seller agrees to sell real property
located at 6045, 6037, 6031, 6025, 6939, 6933, 6927, and 6921 Brooklyn Boulevard, City
of Brooklyn Center, which are in the process of being platted and will be legally
described as follows:
Lots 1-7, Block 1, Robertson and Brekke’s Brooklyn Boulevard First Addition and Lots
1-6, Block 1, Robertson and Brekke’s Brooklyn Boulevard Second Addition, according
to the recorded plats thereof, County of Hennepin, State of Minnesota
(the “Property”).
3. Price and Terms. The price for the Property is one dollar ($ 1.00) which Buyer shall
pay by certified check or wire transfer on the Date of Closing. The “Date of Closing”
shall be October 30, 2020, or such other earlier or later date as the parties mutually agree.
4. Personal Property Included in Sale. There are no items of personal property or fixtures
owned by Seller and currently located on the Property for purposes of this sale.
5. Deed. Upon performance by Buyer, Seller shall deliver a quit claim deed conveying title
to the Property to Buyer, in substantially the form attached as Exhibit A (the “Deed”).
2
6. Real Estate Taxes and Special Assessments. The parties agree and understand that the
Property is exempt from real estate taxes for taxes payable in the current year. Seller
shall pay on Date of Closing all special assessments levied against the Property as of the
date of this Agreement, including those certified for payment with taxes due and payable
in 2020. Seller represents that there are no special assessments pending as of the date of
this Agreement. If a special assessment becomes pending after the date of this
Agreement and before the Date of Closing, Buyer may, at Buyer’s option:
A. Assume payment of the pending special assessment without adjustment to the
purchase price of the Property; or
B. Require Seller to pay the pending special assessment and Buyer shall pay a
commensurate increase in the purchase price of the Property, which increase shall
be the same as the estimated amount of the assessment; or
C. Declare this Agreement null and void by notice to Seller, and earnest money shall
be refunded to Buyer.
7. Closing Costs and Related Items. Seller shall be responsible for the following costs: (a)
recording fees and conservation fees for all instruments required to establish marketable title
in Seller; (b) deed transfer taxes and conservation fees required to be paid in connection with
the Deed be given by Seller; (c) the costs associated with the platting of the Property; (d) the
costs to record the Affordable Housing Declaration as defined in this Agreement. Buyer
shall be responsible for the payment of the following costs: (a) recording fees required to be
paid in connection with this Agreement and the Deed to be given by Seller; (b) the cost of
all title evidence, including all search and commitment fees and the premium for an owner’s
policy of title insurance; and (c) closing fee, if any. Each party shall be responsible for its
own attorneys’ fees and costs.
8. Sewer and Water. Seller warrants that city sewer and water are available at the Property
line.
9. Condition of Property. Buyer acknowledges that it has inspected or has had the
opportunity to inspect the Property and agrees to accept the Property “AS IS.” Buyer has
the right, at its own expense to take soil samples for the purpose of determining if the soil
is suitable for construction of the dwellings described in Section 14 below. If the soil is
determined to be unacceptable the Buyer may rescind this Agreement by written notice to
Seller, in which case the Agreement shall be null and void and all earnest money paid
hereunder shall be refunded to Buyer. Seller makes no warranties as to the condition of
the Property.
10. Marketability of Title. Upon execution of this Agreement by both parties, Buyer will
obtain a commitment for an owner’s title insurance policy. Buyer shall have 15 business
days after receipt of the commitment to examine the same and to deliver written
objections to title, if any, to Seller. Seller shall have the greater of (i) the number of days
3
remaining until the Date of Closing; or (ii) 30 days to have such objections removed or
satisfied.
11. Title Clearance and Remedies. If Seller shall fail to have title objections timely
removed, Buyer may, at its sole election: (a) terminate this Agreement without any
liability on its part; in which event the earnest money shall be promptly refunded in
exchange for a quit claim deed to the Property from Buyer; or (b) take title to the
Property subject to such objections.
If title is marketable, or is made marketable as provided herein, and Buyer defaults in any
of the agreements herein, Seller may elect either of the following options, as permitted by
law:
A. Cancel this Agreement as provided by statute and retain all payments made
hereunder as liquidated damages;
B. Seek specific performance within six months after such right of action arises,
including costs and reasonable attorneys’ fees, as permitted by law.
If title is marketable, or is made marketable as provided herein, and Seller defaults in any
of the agreements herein, Buyer may, as permitted by law:
A. Seek damages from Seller including costs and reasonable attorneys’ fees;
B. Seek specific performance within six months after such right of action arises.
12. Well Disclosure. Seller certifies that there are no wells on the Property.
13. Individual Sewage Treatment System Disclosure. Seller certifies that there is no
individual sewage treatment system on or serving the Property.
14. Construction and Sale of Dwelling. Buyer agrees that it will construct 13 three-
bedroom triplexes on the Property, intended for rental. Buyer agrees that at closing, that
the Affordable Housing Declaration that is attached to this Agreement as Exhibit C will
be recorded against the Property.
A. The triplexes described in this Section are referred to as the “Minimum
Improvements.”
B. The Minimum Improvements shall consist of 13 triplexes with, three bedrooms
and two bathrooms per unit, and shall be constructed substantially in accordance
with the plans on file in Brooklyn Center City Hall. Construction of the
Minimum Improvements must be substantially completed within 18 months from
the date of closing. Construction will be considered substantially complete when
the final certificate of occupancy has been issued by the City of Brooklyn Center
building official.
4
C. Promptly after substantial completion of the Minimum Improvements in
accordance with those provisions of the Agreement relating solely to the
obligations of Buyer to construct such Minimum Improvements (including the
date for completion thereof), Seller will furnish Buyer with a Certificate of
Completion for such improvements. Such certification by Seller shall be (and it
shall be so provided in the Deed and in the certification itself) a conclusive
determination of satisfaction and termination of the agreements and covenants in
this Agreement (with the exception of the Affordable Housing Declaration) and in
the Deed with respect to the obligations of Buyer and its successors and assigns,
to construct the Minimum Improvements and the dates for completion thereof.
The certificate provided for in this Section of this Agreement shall be in such
form as will enable it to be recorded in the proper office for the recordation of
deeds and other instruments pertaining to the Property. If Seller shall refuse or
fail to provide any certification in accordance with the provisions of this Section,
Seller shall, within 30 days after written request by Buyer, provide Buyer with a
written statement, indicating in adequate detail in what respects Buyer has failed
to complete the Minimum Improvements in accordance with the provisions of the
Agreement, or is otherwise in default, and what measures or acts it will be
necessary, in the opinion of Seller for Buyer to take or perform in order to obtain
such certification.
D. The Buyer represents and agrees that until issuance of the Certificate of Completion
for the Minimum Improvements:
(1) Buyer has not made or created and will not make or create or
suffer to be made or created any total or partial sale, assignment, conveyance, or
lease, or any trust or power, or transfer in any other mode or form of or with
respect to this Agreement or the Property or any part thereof or any interest
therein, or any contract or agreement to do any of the same, to any person or
entity (collectively, a “Transfer”), without the prior written approval of Seller’s
Board of Commissioners. The term “Transfer” does not include encumbrances
made or granted by way of security for, and only for, the purpose of obtaining
construction, interim or permanent financing necessary to enable Buyer or any
successor in interest to the Property, or any part thereof, to construct the
Minimum Improvements or component thereof.
(2) If Buyer seeks to effect a Transfer to any person or entity prior to
issuance of the Certificate of Completion, the Seller shall be entitled to require as
conditions to such Transfer that:
(i) any proposed transferee shall have the qualifications and
financial responsibility, in the reasonable judgment of Seller, necessary and
adequate to fulfill the obligations undertaken in this Agreement by Buyer as
to the portion of the Property to be transferred; and
5
(ii) Any proposed transferee, by instrument in writing
satisfactory to Seller and in form recordable in the public land records of
Hennepin County, Minnesota, shall, for itself and its successors and
assigns, and expressly for the benefit of Seller, have expressly assumed all
of the obligations of Buyer under this Agreement as to the portion of the
Property to be transferred and agreed to be subject to all the conditions
and restrictions to which Buyer is subject as to such portion; provided,
however, that the fact that any transferee of, or any other successor in
interest whatsoever to, the Property, or any part thereof, shall not, for
whatever reason, have assumed such obligations or so agreed, and shall
not (unless and only to the extent otherwise specifically provided in this
Agreement or agreed to in writing by Seller) deprive Seller of any rights
or remedies or controls with respect to the Property, the Minimum
Improvements or any part thereof or the construction of the Minimum
Improvements; it being the intent of the parties as expressed in this
Agreement that (to the fullest extent permitted at law and in equity and
excepting only in the manner and to the extent specifically provided
otherwise in this Agreement) no transfer of, or change with respect to,
ownership in the Property or any part thereof, or any interest therein,
however consummated or occurring, and whether voluntary or
involuntary, shall operate, legally, or practically, to deprive or limit Seller
of or with respect to any rights or remedies on controls provided in or
resulting from this Agreement with respect to the Property that Seller
would have had, had there been no such transfer or change. In the absence
of specific written agreement by Seller to the contrary, no such transfer or
approval by Seller thereof shall be deemed to relieve Buyer, or any other
party bound in any way by this Agreement or otherwise with respect to the
Property, from any of its obligations with respect thereto.
(iii) Any and all instruments and other legal documents
involved in effecting the transfer of any interest in this Agreement or the
Property governed by this paragraph (D) shall be in a form reasonably
satisfactory to Seller.
(3) If the conditions described in paragraph (2) above are satisfied,
then the Transfer will be approved and Buyer shall be released from its
obligations under this Agreement, as to the portion of the Property that is
transferred, assigned, or otherwise conveyed. The provisions of this paragraph (3)
apply to all subsequent transferors.
(4) Upon issuance of the Certificate of Completion, Buyer may Transfer
the Property or Buyer’s rights and obligations under this Agreement with respect to
such Property without the prior written consent of Seller.
E. The Buyer, and its successors and assigns, agree that it (a) will use the Minimum
Improvements only as dwellings, and that the buildings on the Property will only
be occupied as residences, (b) will not seek exemption from real estate taxes on
6
the Property under State law, and (c) will not transfer or permit transfer of the
Property to any entity whose ownership or operation of the Property would result
in the Property being exempt from real estate taxes under State law (other than any
portion thereof dedicated or conveyed to the City of Brooklyn Center or Seller in
accordance with this Agreement). The covenants in this paragraph run with the
land, survive both delivery of the Deed and issuance of the Certificate of Completion
for the Minimum Improvements, and shall remain in effect for 15 years after the
Date of Closing.
15. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to
Buyer. In the event that subsequent to conveyance of the Property or any part thereof to
Buyer and prior to receipt by Buyer of the Certificate of Completion for of the Minimum
Improvements, Buyer, subject to Unavoidable Delays (as hereafter defined), fails to carry
out its obligations with respect to the construction of the Minimum Improvements
(including the nature and the date for the completion thereof), or abandons or substantially
suspends construction work, and any such failure, abandonment, or suspension shall not be
cured, ended, or remedied within 30 days after written demand from Seller to Buyer to do
so, then Seller shall have the right to re-enter and take possession of the Property and to
terminate (and revest in Seller) the estate conveyed by the Deed to Buyer, it being the intent
of this provision, together with other provisions of the Agreement, that the conveyance of
the Property to Buyer shall be made upon, and that the Deed shall contain a condition
subsequent to the effect that in the event of any default on the part of Buyer and failure on
the part of Buyer to remedy, end, or abrogate such default within the period and in the
manner stated in such subdivisions, Seller at its option may declare a termination in favor of
Seller of the title, and of all the rights and interests in and to the Property conveyed to Buyer,
and that such title and all rights and interests of Buyer, and any assigns or successors in
interest to and in the Property, shall revert to Seller, but only if the events stated in this
Section have not been cured within the time periods provided above.
For the purposes of this Agreement, the term “Unavoidable Delays” means delays beyond
the reasonable control of Buyer as a result thereof which are the direct result of strikes, other
labor troubles, prolonged adverse weather or acts of God, fire, or other casualty to the
Minimum Improvements, litigation commenced by third parties which, by injunction or
other similar judicial action, directly results in delays, or acts of any federal, state, or local
governmental unit (other than Seller in exercising its rights under this Agreement) which
directly results in delays. Unavoidable Delays shall not include delays in Buyer’s obtaining
of permits or governmental approvals necessary to enable construction of the Minimum
Improvements by the dates such construction is required under this Section of this
Agreement.
16. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in Seller of
title to or possession of the Property or any part thereof as provided in Section 15, Seller
shall apply the purchase price paid by Buyer under Section 4 of this Agreement as follows:
(a) First, to reimburse Seller for all costs and expenses incurred by Seller, including
but not limited to proportionate salaries of personnel, in connection with the
7
recapture, management, and resale of the Property or part thereof (but less any
income derived by Seller from the Property or part thereof in connection with
such management); all taxes, assessments, and water and sewer charges with
respect to the Property or part thereof (or, in the event the Property is exempt
from taxation or assessment or such charge during the period of ownership thereof
by Seller, an amount, if paid, equal to such taxes, assessments, or charges (as
determined by Seller assessing official) as would have been payable if the
Property were not so exempt); any payments made or necessary to be made to
discharge any encumbrances or liens existing on the Property or part thereof at the
time of revesting of title thereto in Seller or to discharge or prevent from attaching
or being made any subsequent encumbrances or liens due to obligations, defaults
or acts of Buyer, its successors or transferees; any expenditures made or
obligations incurred with respect to the making or completion of the Minimum
Improvements or any part thereof on the Property or part thereof; and any
amounts otherwise owing Seller by Buyer and its successor or transferee; and
(b) Second, to reimburse Buyer for the balance of the purchase price remaining after
the reimbursements specified in paragraph (a) above. Such reimbursement shall
be paid to Buyer upon delivery of an executed, recordable warranty deed to the
Property by Buyer to Seller.
17. Time is of the essence for all provisions of this Agreement.
18. Notices. All notices required herein shall be in writing and delivered personally or
mailed to the address shown at Section 1 above and, if mailed, are effective as of the date
of mailing.
19. Minnesota Law. This contract shall be governed by the laws of the State of Minnesota.
20. Specific Performance. This Agreement may be specifically enforced by the parties,
provided that an action is brought within one year of the date of alleged breach of this
Agreement.
21. No Remedy Exclusive. No remedy herein conferred upon or reserved to Seller or Buyer is
intended to be exclusive of any other available remedy or remedies, but each and every such
remedy shall be cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law or in equity or by statute. No delay or
omission to exercise any right or power accruing upon any default shall impair any such
right or power or shall be construed to be a waiver thereof, but any such right and power
may be exercised from time to time and as often as may be deemed expedient.
22. No Merger of Representations, Warranties. All representations and warranties contained
in this Agreement shall not be merged into any instruments or conveyance delivered at
closing, and the parties shall be bound accordingly.
8
23. Recording. This Agreement shall be filed of record with the Hennepin County Registrar of
Titles. Buyer shall pay all recording costs.
24. Commissions. Both Seller and Buyer represent that they have not entered into a contract
with any real estate agent or broker, whereby the agent or broker is entitled to a
commission resulting from the transaction contemplated by this Agreement. Each party
agrees to indemnify, defend, and hold harmless the other party against any claim made by
a real estate broker or agent for a commission or fee based on alleged acts or agreements
with the indemnifying party.
25. Platting. The Property currently consists of several lots that are being platted by Seller
into 13 lots. Seller shall be responsible for making an application to the City of Brooklyn
Center (the “City”) to plat the Property and any costs associated with the platting of the
Property. Buyer’s obligation to purchase the Property pursuant to this Agreement shall
be contingent upon the approval of the City of the plat.
S-1
In witness of the foregoing, the parties have executed this agreement on the year and date
written above.
SELLER:
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF BROOKLYN CENTER,
MINNESOTA
By: _____________________________
Mike Elliott
Its: President
By: ________________________________
Cornelius Boganey
Its: Executive Director
STATE OF MINNESOTA
} ss.
COUNTY OF HENNEPIN
This instrument was acknowledged before me on this ______ day of _____________,
2020, by Mike Elliott and Cornelius Boganey, the President and Executive Director, respectively,
of the Economic Development Authority of the City of Brooklyn Center, Minnesota, a public
body corporate and politic under the laws of Minnesota, on behalf of the public body corporate
and politic.
(Stamp)
Notary Public
S-2
BUYER:
C. ALAN HOMES, LLC
By: _______________________________
Its: _______________________________
STATE OF MINNESOTA )
} ss.
COUNTY OF __________ )
The foregoing was acknowledged before me this ______ day of _________ 2020, by
___________________, the ______________________ of C. Alan Homes, LLC, a Minnesota
limited liability company, on behalf of the company.
(Stamp)
Notary Public
This document drafted by:
Kennedy & Graven, Chartered
(SJS)
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
(612) 337-9300
A-1
EXHIBIT A
to
PURCHASE AND DEVELOPMENT AGREEMENT
FORM OF QUIT CLAIM DEED
Deed Tax Due: $______
ECRV ___________________
QUIT CLAIM DEED
THIS INDENTURE, between the Economic Development Authority of the City of
Brooklyn Center, Minnesota, a Minnesota public body corporate and politic (the “Grantor”), and
C. Alan Homes, LLC, a Minnesota limited liability company (the “Grantee”).
WITNESSETH, that Grantor, in consideration of the sum of $__________ and other
good and valuable consideration the receipt whereof is hereby acknowledged, does hereby grant,
bargain, quitclaim, and convey to the Grantee, its successors and assigns forever, all the tract or
parcel of land lying and being in the County of Hennepin and State of Minnesota described as
follows, to-wit (such tract or parcel of land is hereinafter referred to as the “Property”):
[Insert Legal Description]
Check here if all or part of property is registered (Torrens)
To have and to hold the same, together with all the hereditaments and appurtenances
thereunto belonging.
SECTION 1.
It is understood and agreed that this Deed is subject to the covenants, conditions,
restrictions, and provisions of the Purchase and Development Agreement recorded herewith,
between the Grantor and Grantee, dated as of ____________, 2020 (the “Agreement”) and that
the Grantee shall not convey this Property, or any part thereof, except as permitted by the
Agreement until a certificate of completion releasing the Grantee from certain obligations of said
Agreement as to this Property or such part thereof then to be conveyed, has been placed of
record. This provision, however, shall in no way prevent the Grantee from mortgaging this
Property in order to obtain funds for the purchase of the Property hereby conveyed or for
erecting the Minimum Improvements thereon (as defined in the Agreement) in conformity with
the Agreement, any applicable development program and applicable provisions of the zoning
ordinance of the City of Brooklyn Center, Minnesota, or for the refinancing of the same.
It is specifically agreed that the Grantee shall promptly begin and diligently prosecute to
completion the development of the Property through the construction of the Minimum
Improvements thereon, as provided in the Agreement.
A-2
Promptly after completion of the Minimum Improvements in accordance with the
provisions of the Agreement, the Grantor will furnish the Grantee with an appropriate instrument
so certifying. Such certification by the Grantor shall be (and it shall be so provided in the
certification itself) a conclusive determination of satisfaction and termination of the agreements
and covenants of the Agreement and of this Deed with respect to the obligation of the Grantee,
and its successors and assigns, to construct the Minimum Improvements and the dates for the
beginning and completion thereof. Such certification and such determination shall not constitute
evidence of compliance with or satisfaction of any obligation of the Grantee to any holder of a
mortgage, or any insurer of a mortgage, securing money loaned to finance the purchase of the
Property hereby conveyed or the Minimum Improvements, or any part thereof.
All certifications provided for herein shall be in such form as will enable them to be
recorded with the County Registrar of Titles of Hennepin County, Minnesota. If the Grantor
shall refuse or fail to provide any such certification in accordance with the provisions of the
Agreement and this Deed, the Grantor shall, within 30 days after written request by the Grantee,
provide the Grantee with a written statement indicating in adequate detail in what respects the
Grantee has failed to complete the Minimum Improvements in accordance with the provisions of
the Agreement or is otherwise in default, and what measures or acts it will be necessary, in the
opinion of the Grantor, for the Grantee to take or perform in order to obtain such certification.
SECTION 2.
The Grantee’s rights and interest in the Property are subject to the terms and conditions
of Sections 14 and 15 of the Agreement relating to the Grantor’s right to re-enter and revest in
Grantor title to the Property under conditions specified therein, including but not limited to, the
condition subsequent that the Grantee substantially complete construction of the Minimum
Improvements within 18 months of the date of this Deed and that the Grantee shall transfer or
convey the Property and Minimum Improvements thereon only in accordance with Section 14
(D).
SECTION 3.
The Grantee agrees for itself and its successors and assigns to or of the Property or any
part thereof, hereinbefore described, that the Grantee and such successors and assigns shall
comply with Section 14 (E) of the Agreement for a period of 15 years after the date hereof.
It is intended and agreed that the above and foregoing agreements and covenants shall be
covenants running with the land for the respective terms herein provided, and that they shall, in
any event, and without regard to technical classification or designation, legal or otherwise, and
except only as otherwise specifically provided in this Deed, be binding, to the fullest extent
permitted by law and equity for the benefit and in favor of, and enforceable by, the Grantor
against the Grantee, its successors and assigns, and every successor in interest to the Property, or
any part thereof or any interest therein, and any party in possession or occupancy of the Property
or any part thereof.
A-3
In amplification, and not in restriction of, the provisions of the preceding section, it is
intended and agreed that the Grantor shall be deemed a beneficiary of the agreements and
covenants provided herein, both for and in its own right, and also for the purposes of protecting
the interest of the community and the other parties, public or private, in whose favor or for
whose benefit these agreements and covenants have been provided. Such agreements and
covenants shall run in favor of the Grantor without regard to whether the Grantor has at any time
been, remains, or is an owner of any land or interest therein to, or in favor of, which such
agreements and covenants relate. The Grantor shall have the right, in the event of any breach of
any such agreement or covenant to exercise all the rights and remedies, and to maintain any
actions or suits at law or in equity or other proper proceedings to enforce the curing of such
breach of agreement or covenant, to which it or any other beneficiaries of such agreement or
covenant may be entitled; provided that Grantor shall not have any right to re-enter the Property
or revest in the Grantor the estate conveyed by this Deed on grounds of Grantee’s failure to
comply with its obligations under this Section 3.
IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed in its
behalf by its President and Executive Director this ______ day of ____________, 2020.
The Seller certifies that the Seller does
not know of any wells on the described
real property.
A well disclosure certificate accompanies
this document or has been electronically
filed. (If electronically filed, insert
WDC number: __________________).
GRANTOR
ECONOMIC DEVELOPMENT
AUTHORITY OF THE CITY OF
BROOKLYN CENTER, MINNESOTA
By
Mike Elliott
Its: President
By
Cornelius Boganey
Its: Executive Director
A-4
STATE OF MINNESOTA )
) ss
COUNTY OF HENNEPIN )
This instrument was acknowledged before me on this ______ day of _________ 2020, by
Mike Elliott and Cornelius Boganey, the President and Executive Director, respectively, of the
Economic Development Authority of the City of Brooklyn Center, Minnesota, a public body
corporate and politic under the laws of Minnesota, on behalf of the public body corporate and
politic.
(Stamp)
Notary Public
This instrument was drafted by:
Kennedy & Graven, Charted (SJS)
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
(612) 337-9300
Tax Statements should be sent to:
C. Alan Homes, LLC
5215 Terraceview Lane No.
Plymouth, MN 55446
B-1
EXHIBIT B
TO PURCHASE AND DEVELOPMENT AGREEMENT
FORM OF CERTIFICATE OF COMPLETION
WHEREAS, the Economic Development Authority of the City of Brooklyn Center,
Minnesota, a public body, corporate and politic (the “Grantor”), conveyed land in Hennepin
County, Minnesota to C. Alan Homes, LLC, a Minnesota limited liability company (the
“Grantee”), by a Deed recorded in the office of the Registrar of Titles in and for the County of
Hennepin and State of Minnesota, as Document Number _______________ ;
and
WHEREAS, said Deed contained certain covenants and restrictions set forth in Sections
1 and 2 of said Deed; and
WHEREAS, said Grantee has performed said covenants and conditions insofar as it is
able in a manner deemed sufficient by the Grantor to permit the execution and recording of this
certification;
NOW, THEREFORE, this is to certify that all building construction and other physical
improvements specified to be done and made by the Grantee have been completed and the above
covenants and conditions in said Deed and the agreements and covenants in Sections 14 and 15
of the Agreement (as described in said Deed) have been performed by the Grantee therein, and
the County Registrar of Titles in and for the County of Hennepin and State of Minnesota is
hereby authorized to accept for recording and to record, the filing of this instrument, to be a
conclusive determination of the satisfactory termination of the covenants and conditions of
Sections 14 and 15 of the Agreement and the covenants and restrictions set forth in Sections 1
and 2 of said Deed; provided that the covenants set forth in Sections 14 (E) of the Agreement,
and in Section 3 of the Deed, remain in full force and effect through the period stated thereon.
B-2
Dated: ______________, 20___.
ECONOMIC DEVELOPMENT AUTHORITY OF
THE CITY OF BROOKLYN CENTER,
MINNESOTA
By
Its: President
By
Its: Executive Director
STATE OF MINNESOTA )
) ss
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this ____ day of
_____________, 20__, by ____________________ and ____________________, the President
and Executive Director, respectively, of the Economic Development Authority of the City of
Brooklyn Center, Minnesota, a public body corporate and politic under the laws of the State of
Minnesota, on behalf of the public body corporate and politic.
__________________________________________
Notary Public
This document drafted by:
KENNEDY & GRAVEN, CHARTERED (SJS)
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
(612) 337-9300
3
EXHIBIT C
TO PURCHASE AND DEVELOPMENT AGREEMENT
FORM OF AFFORDABLE HOUSING DECLARATION
[to be added]
1
BR305-1-673397.v1
DECLARATION OF RESTRICTIVE COVENANTS
THIS DECLARATION OF RESTRICTIVE COVENANTS, dated September ___, 2020 (the
“Declaration”), by C. ALAN HOMES, LLC, a Minnesota limited liability company (the
“Developer”), is given for the benefit of the ECONOMIC DEVELOPMENT AUTHORITY OF
BROOKLYN CENTER, MINNESOTA, a public body corporate and politic organized under the
laws of the State of Minnesota (the “EDA”).
RECITALS
WHEREAS, the EDA and the Developer entered into that certain Purchase and Development
Agreement, dated September ___ 2020, (the “Contract”); and
WHEREAS, pursuant to the Contract, the Developer is obligated to construct
approximately 13 triplexes with three bedrooms and two bathrooms per unit, substantially in
accordance with the plans on file in Brooklyn Center City Hall (the “Housing Facility”) to be located
on the property described in EXHIBIT A hereto (the “Property”), and to cause compliance with
certain affordability covenants set forth herein; and
WHEREAS, Section 14 of the Contract requires that the Developer cause to be executed an
instrument in recordable form reflecting the covenants set forth herein; and
WHEREAS, the Developer intends, declares, and covenants that the restrictive covenants set
forth herein will be and are covenants running with the Property for the term described herein and
binding upon all subsequent owners of the Property for the term described herein, and are not merely
personal covenants of the Developer; and
WHEREAS, capitalized terms in this Declaration have the meaning provided in the Contract
unless otherwise defined herein.
NOW, THEREFORE, in consideration of the promises and covenants hereinafter set forth,
and of other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the
Developer agrees as follows:
1. Term of Restrictions.
(a) Occupancy Restrictions. The term of the Occupancy Restrictions set forth in Section
3 of this Declaration will commence on the date a certificate of occupancy is issued by the City for
all residential units on the Property and continue for a period of [12] years thereafter (the “Qualified
Project Period”).
(b) Termination of Declaration. This Declaration shall terminate at the end of the
Qualified Project Period.
2
BR305-1-673397.v1
In addition, in the event of foreclosure or transfer of title by deed in lieu of foreclosure, upon
completion of the foreclosure and expiration of the applicable redemption period, or recording of a
deed in lieu of foreclosure, any mortgagee (or any assignee of the mortgagee) or any purchasers at or
after foreclosure thereof, by the successful bidder at the sale, to the title to the Development Property,
may terminate this Declaration, by providing written notice to the EDA and by filing a termination
document in the applicable real property records in Hennepin County, and thereafter this Declaration
shall be of no further force and effect; provided, however, that the preceding provisions of this
sentence shall cease to apply and the restrictions contained herein shall be reinstated if, at any time
subsequent to the termination of this Declaration as the result of the foreclosure, or the delivery of a
deed in lieu of foreclosure, or a similar event, the Developer or any related person (within the meaning
of Section 1.103-10(e) of the Treasury Regulations) obtains an ownership interest in the Property for
federal income tax purposes.
Each of the events set forth in the first two paragraphs of this Section 1(b) are referred to
individually and collectively herein as the “Termination Date”.
(c) Removal from Real Estate Records. After the Termination Date of this Declaration,
the EDA will, upon request by the Developer or its assigns, file any document appropriate to remove
this Declaration from the real estate records of Hennepin County, Minnesota.
2. Project Restrictions.
(a) The Developer represents, warrants, and covenants that all leases of residential units
to Qualifying Tenants (as defined in Section 3(a)(i) hereof) will contain clauses, among others,
wherein each individual lessee:
(1) Certifies the accuracy of the statements made in its application and
Eligibility Certification (as defined in Section 3(a)(ii) hereof); and
(2) Agrees that the family income at the time the lease is executed will be
deemed a substantial and material obligation of the lessee’s tenancy; that the lessee
will comply promptly with all requests for income and other information relevant to
determining low or moderate income status from the Developer or the EDA, and that
the lessee’s failure or refusal to comply with a request for information with respect
thereto will be deemed a violation of a substantial obligation of the lessee’s tenancy.
(b) The Developer will permit any duly authorized representative of the EDA to inspect
the books and records of the Developer pertaining to the income of Qualifying Tenants residing in
the Housing Facility.
3. Occupancy Restrictions. The Developer represents, warrants, and covenants that:
(a) Qualifying Tenants. Throughout the Qualified Project Period, at least 7 residential
units, reasonably distributed throughout the Housing Facility (the “Affordable Units”), shall be leased
to and occupied or held vacant and available for occupancy by tenants holding certificates/vouchers
under Section 8 of the United Stated Housing Act of 1937, as amended, codified as 42 U.S.C. Sections
3
BR305-1-673397.v1
1401 et seq. (“Qualifying Tenants”). Rents for the Affordable Units cannot exceed the maximum
allowable Section 8 fair market rents as published by HUD on an annual basis as determined by the
Metropolitan Council’s Housing and Redevelopment Authority (the “Metro HRA”).
(b) Certification of Tenant Eligibility. As a condition to initial and continuing occupancy,
each person who is intended to be a Qualifying Tenant will be required annually to deliver to the
Developer a copy of a valid Section 8 certificate/voucher (the “Eligibility Certification”).
(c) Lease. The form of lease to be utilized by the Developer in renting any residential
units in the Housing Facility to any person who is intended to be a Qualifying Tenant will provide for
termination of the lease and consent by the person to immediate eviction for failure to qualify as a
Qualifying Tenant as a result of any material misrepresentation made by the person with respect to
the Eligibility Certification.
(d) Annual Report. The Developer covenants and agrees that during the term of this
Declaration, it will prepare and submit to the EDA on or before July 1 of each year, a certificate
substantially in the form of EXHIBIT B hereto, executed by the Developer, (a) identifying the
tenancies and the dates of occupancy (or vacancy) for all Qualifying Tenants in the Housing Facility,
number of the residential units of the Housing Facility which were occupied by Qualifying Tenants
(or held vacant and available for occupancy by Qualifying Tenants) at all times during the year
preceding the date of the certificate; (b) describing all transfers or other changes in ownership of the
Housing Facility or any interest therein; and (c) stating, that to the best knowledge of the person
executing the certificate after due inquiry, the Developer was not otherwise in default under this
Declaration during the year.
(e) Notice of Non-Compliance. The Developer will immediately notify the EDA if at any
time during the term of this Declaration fewer than 7 residential units in the Housing Facility are
occupied or available for occupancy as required by the terms of this Declaration.
4. Transfer Restrictions. Except as provided in 1(b), the Developer covenants and agrees
that the Developer will cause or require as a condition precedent to any conveyance, transfer,
assignment, or any other disposition of the Property prior to the termination of the Occupancy
Restrictions provided herein (the “Transfer”) that the transferee of the Property pursuant to the
Transfer assume in writing, in a form acceptable to the EDA, all duties and obligations of the
Developer under this Declaration, including this Section 4, in the event of a subsequent Transfer by
the transferee prior to expiration of the Occupancy Restrictions provided herein (the “Assumption
Agreement”). The Developer will deliver the Assumption Agreement to the EDA prior to the
Transfer.
5. Enforcement.
(a) The Developer will permit, during normal business hours and upon reasonable notice,
any duly authorized representative of the EDA to inspect any books and records of the Developer
regarding the Housing Facility with respect to the Eligibility Certifications of Qualifying Tenants.
4
BR305-1-673397.v1
(b) The Developer will submit any other information, documents or certifications
requested by the EDA which the EDA deems reasonably necessary to substantiate the Developer’s
continuing compliance with the provisions specified in this Declaration.
(c) The Developer acknowledges that in consideration for assistance provided by the
EDA under the Contract that makes possible the acquisition of the land for the construction of the
Housing Facility on the Property, hereby agrees and consents that the EDA will be entitled, for any
breach of the provisions of this Declaration, and in addition to all other remedies provided by law or
in equity, to enforce specific performance by the Developer of its obligations under this Declaration
in a state court of competent jurisdiction. The Developer hereby further specifically acknowledges
that the EDA cannot be adequately compensated by monetary damages in the event of any default
hereunder.
(d) The Developer understands and acknowledges that, in addition to any remedy set forth
herein for failure to comply with the restrictions set forth in this Declaration, the EDA may exercise
any remedy available to it under Article IV of the Contract.
6. Indemnification. The Developer hereby indemnifies, and agrees to defend and hold
harmless, the EDA from and against all liabilities, losses, damages, costs, expenses (including
attorneys’ fees and expenses), causes of action, suits, allegations, claims, demands, and judgments of
any nature arising from the consequences of a legal or administrative proceeding or action brought
against them, or any of them, on account of any failure by the Developer to comply with the terms of
this Declaration, or on account of any representation or warranty of the Developer contained herein
being untrue.
7. Agent of the EDA. The EDA will have the right to appoint an agent to carry out any
of its duties and obligations hereunder, and will inform the Developer of any agency appointment by
written notice.
8. Severability. The invalidity of any clause, part or provision of this Declaration will
not affect the validity of the remaining portions thereof.
9. Notices. All notices to be given pursuant to this Declaration must be in writing and
will be deemed given when mailed by certified or registered mail, return receipt requested, to the
parties hereto at the addresses set forth below, or to any other place as a party may from time to time
designate in writing. The Developer and the EDA may, by notice given hereunder, designate any
further or different addresses to which subsequent notices, certificates, or other communications are
sent. The initial addresses for notices and other communications are as follows:
To the EDA:
Economic Development Authority of Brooklyn Center, Minnesota
Brooklyn Center City Hall
6301 Shingle Creek Parkway
Brooklyn Center, MN 55430
Attn: Finance Director
5
BR305-1-673397.v1
To the Developer: C. ALAN HOMES, LLC
5215 Terraceview Lane No. ___
Plymouth, MN 55446
Attn: __________________
10. Governing Law. This Declaration is governed by the laws of the State of Minnesota
and, where applicable, the laws of the United States of America.
11. Attorneys’ Fees. In case any action at law or in equity, including an action for
declaratory relief, is brought against the Developer to enforce the provisions of this Declaration, the
Developer agrees to pay the reasonable attorneys’ fees and other reasonable expenses paid or incurred
by the EDA in connection with the action.
12. Declaration Binding. This Declaration and the covenants contained herein will run
with the real property comprising the Housing Facility and will bind the Developer and its successors
and assigns and all subsequent owners of the Property or any interest therein, and the benefits will
inure to the EDA and its successors and assigns until the Termination Date of this Declaration as
provided in Section 1(b) hereof.
S-1
BR305-1-673397.v1
IN WITNESS WHEREOF, the Developer has caused this Declaration of Restrictive
Covenants to be signed by its respective duly authorized representatives, as of the day and year first
written above.
C. ALAN HOMES, LLC, a Minnesota limited
liability company
By:
Its: ____________________________________
STATE OF MINNESOTA )
) SS.
COUNTY OF _______ )
The foregoing instrument was acknowledged before me this _______________, 2020, by
____________, the _______ of C. ALAN HOMES, LLC, a Minnesota limited liability company.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Kennedy & Graven, Chartered (JSB)
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
(612) 337-9300
S-2
BR305-1-673397.v1
This Declaration is acknowledged and consented to by:
ECONOMIC DEVELOPMENT AUTHORITY OF
BROOKLYN CENTER, MINNESOTA
By
Its President
By
Its Executive Director
STATE OF MINNESOTA )
) SS.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _____________, 2020, by
_____________________________, the President of the Economic Development Authority of
Brooklyn Center, Minnesota a public body corporate and politic organized under the laws of the
State of Minnesota, on behalf of said EDA.
Notary Public
STATE OF MINNESOTA )
) SS.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this _____________, 2020, by
____________________, the Executive Director of the Economic Development Authority of
Brooklyn Center, Minnesota, a public body corporate and politic organized under the laws of the
State of Minnesota, on behalf of said EDA.
Notary Public
A-1
BR305-1-673397.v1
EXHIBIT A
The real property located at 6045, 6037, 6031, 6025, 6939, 6933, 6927, and 6921 Brooklyn Boulevard, City of
Brooklyn Center, which is in the process of being platted and will be legally described as follows:
Lots 1-7, Block 1, Robertson and Brekke’s Brooklyn Boulevard First Addition and Lots 1-6, Block 1,
Robertson and Brekke’s Brooklyn Boulevard Second Addition, according to the recorded plats thereof, County
of Hennepin, State of Minnesota
B-1
BR305-1-673397.v1
EXHIBIT B
Certificate of
Continuing Program Compliance
Date: ___________________
The following information with respect to the Housing Facility located at
__________________, Brooklyn Center, Minnesota (the “Housing Facility”), is being provided by
C. ALAN HOMES, LLC (the “Owner”) to the Economic Development Authority of Brooklyn
Center, Minnesota (the “EDA”), pursuant to that certain Declaration of Restrictive Covenants, dated
September ___, 2020 (the “Declaration”), with respect to the Housing Facility:
(A) The total number of residential units which are available for occupancy is 39.
The total number of these units occupied is _________________.
(B) The vacancy rate at the Housing Facility in the last 12 months is ___%.
(C) The following residential units which are included in (B) above, have been
re-designated as residential units for Qualifying Tenants since _______________, 20___, the
date on which the last “Certificate of Continuing Program Compliance” was filed with the
EDA by the Owner:
Unit
Number
Previous Designation
of Unit (if any)
Replacing
Unit Number
___________ _________________ _________________
___________ _________________ _________________
(D) The following residential units are considered to be occupied by “Qualifying
Tenants,” as the term is defined in the Declaration based on the information set forth below
(for a total of at least 7 units):
Unit
Number
Last
Name of
Tenant
Number
of
Persons
Residing
in the
Unit
Number of
Bedrooms
Date of
Initial
Occupancy
Date
Vacated and
Held for
Qualifying
Tenants, if
Applicable
1
2
3
4
5
6
7
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BR305-1-673397.v1
(E) The Owner has obtained a valid Section 8 certificate/voucher (an “Eligibility
Certification”) from each Tenant named in (D) above, and each such Certificate is being
maintained by the Owner in its records with respect to the Housing Facility. Attached hereto
is the most recent “Eligibility Certification” for each Tenant named in (D) since
______________, 20___, the date on which the last “Certificate of Continuing Program
Compliance” was filed with the EDA by the Owner.
(F) In renting the residential units in the Housing Facility, the Owner has not given
preference to any particular group or class of persons (except for persons who qualify as
Qualifying Tenants). All of the residential units in the Housing Facility have been rented
pursuant to a written lease, and the term of each lease is at least 12 months.
(G) The information provided in this “Certificate of Continuing Program
Compliance” is accurate and complete, and no matters have come to the attention of the
Owner which would indicate that any of the information provided herein is inaccurate or
incomplete in any respect, or that any “Eligibility Certification” obtained from the Tenants
named herein is invalid.
(H) The following transfers or other changes in ownership of the Housing Facility
or any interest therein have occurred in the last 12 months: [None] or
[describe___________________]
(I) To the best knowledge of the person executing this certificate after due
inquiry, all the residential units were rented or available for rental on a continuous basis during
the year to members of the general public.
(J) The Owner certifies that as of the date hereof at least 7 of the residential
dwelling units in the Housing Facility are occupied or held open for occupancy by Qualifying
Tenants, as defined and provided in the Declaration.
(K) The Housing Facility is in continuing compliance with the Declaration.
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BR305-1-673397.v1
IN WITNESS WHEREOF, I have hereunto affixed my signature, on behalf of the Owner, on
____________________, 20__.
C. ALAN HOMES, LLC, a Minnesota limited
liability company
By:
Its: ____________________________________