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HomeMy WebLinkAboutEDA AGN 08-16-00 EDA COMMISSIONERS Robert W. Ruettimann Patricia Jindra DonaLd G. JoLLy Martaine Szurek Gary L. Peterson JuL ienne Wyckoff John Hunter ECONOMIC DEVELOPMENT AUTHORITY August 16, 2000 The following is the agenda for the regular meeting of the Columbia Heights Economic Development Authority (EDA) to be held at 6:30 PM on Wednesday, August 16, 2000, in the Parkview Villa Community Room B, 965 40th Avenue N.E., Columbia Heights, Minnesota. 2. 3. 4. 6.r,_. I The EDA does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, itsI services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities toI participate in all EDA services, programs, and activities. Auxiliary aids for handicapped persons are available upon requestI when the request is made at least 96 hours in advance. Please call the EDA Secretary at 706-3670 to make arrangementsI (TDD/706-3676 for deaf or hearing impaired only). I CALL TO ORDERfROLL CALL. PLEDGE OF ALLEGIANCE. ADDITIONS/DELETIONS TO MEETING AGENDA. CONSENT AGENDA. (These items are considered to be routine by the EDA Board of Commissioners and will be enacted as part of the Consent Agenda by one motion.) A. Move to adopt the consent agenda items as listed below: 1) Approval of Minutes. a. Regular Meeting of August, 2000. 2) Financial Report and Payment of Bills. a. Financial Statement for August, 2000 b. Payment of Bills for August, 2000 MOTION: Move to approve Resolution 2000-10, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statement for August, 2000 and approving payment of bills for the month of August, 2000. 3) Approve Payment #3 & g4 to Millar Elevator Service Company MOTION: Move to accept the work for Pay Applications #3 and #4 and to authorize payment of $90,105 to Millar Elevator Service Company of Cleveland, Ohio. 4) Section 8 Report. MOTION: Move to receige the Section 8 report as written. REPORT OF THE MANAGEMENT COMPANY. A. Anita Kottsick, Parkview Villa Public Housing Administrator. CITIZEN FORUM TO ADDRESS EDA ON MATTERS NOT ON AGENDA. (At this time, citizens have an oppommity to discuss with the EDA items not on the regular agenda. The citizen is requested to limit their comments to five minutes. Please note, the public may address the EDA regarding specific agenda items at the time the item is being discussed.) 7. RECOGNITION, PROCLAMATIONS, PRESENTATIONS, GUESTS - None. PUBLIC HEARINGS - None. ITEMS FOR CONSIDERATION. A. Other Resolutions - None. B. Bid Considerations - None. C. Other Business. 1) MHFA Loan MOTION: Move to recommend payment to Compu-Link Loan Service, Inc. for the unpaid MHFA Home Improvement Loan number 1103055 in the total amount of $4,377.80 as of 8/15/2000 plus $ .66 daily per diem and $350.00 to MHFA out of proper funds; and furthermore, to direct staffto seek repayment from the loan recipient in Conciliation Court. 2) Budget Meeting MOTION: Move to set a special meeting of the Columbia Heights Economic Development Authority for review of the Proposed 2001 Budget and Proposed Levy for August ,2000. 3) Approve the Initial and Cooperation Agreement for the Transition Block Redevelop- ment Project. MOTION: Move to approve the Initial and Cooperation Agreements for the Transition Block Redevelopment Project contingent on the addition of the proposed language or language substantially similar and acceptable to 1~''~ counsel for the CityfEDA; and furthermore, to authorize the President and Executive Director to enter into ah ..~reement for the same. 10. ADMINISTRATIVE REPORTS. A. Report of the Deputy Executive Director. 1) Property Sale Update - 4216 Central Avenue NE. 2) Update on Acquisition of 3855 Main Street NE. B. Report of the Executive Director. C. Committee/Other Reports. 11. MEETINGS: A. ' The next Regular EDA meeting is scheduled for 6:30 p.m., Tuesday, September 19, 2000 in Community Room B at Parkview Villa. 12. ADJOURNMENT. Walter R. Fehst, Executive Director H: \EDA Agenda\ 8-16-2000 I The mission of the Columbia Heights Economic Development Authority is to provide ~nancial and technical assistance and resources to residential, commercial, and dustrial interests to promote health, safety, welfare, economic development and Iredevelopment. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) REGULAR MEETING MINUTES OF JULY 18, 2000 CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimarm at 6:34 p.m., Tuesday, July 18, 2000, in the Parkview Villa Community Room B, 965 40~ Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Staff Present: PLEDGE OF ALLEGIANCE Robert Ruettirnann, Patricia Jindra, Don Jolly, Gary L. Peterson, Julienne Wyckoff, John Hunter, and Marlaine Szurek (arrived at 7:00 p.m.) Walt Fehst, Executive Director Randy Schumacher, Community Development Assistant Michelle Chalin, Parkview Villa Public Housing Administrator Anita Kottsick, Parkview Villa Public Housing Administrator Shirley Barnes, Crest ¥iew Management ADDITIONS/DELETIONS TO MEETING AGENDA- Addition of 6-B- I to Approve Change Order #2 for the Parkview Villa Elevator Modernization Project. CONSENT AGENDA (These items are considered to be routine by the EDA Board of Commissioners and will be enacted as part of the Consent Agenda by one motion). Ao Adopt the consent agenda items as listed below. 1) Approval of Minutes - regular meeting of June, 2000 MOTION by John Hunter, seconded by Julienne Wyckoff, to approve the minutes of the June, 2000 regular meeting with the following amendments listed below. Page 1, Section B, Report of the Management Company, Paragraph 2, the last sentence should read: All of the units that did not pass inspection will again be inspected at a later date by the Parkview Villa staff. Page 2, Section B, Report of the Management Company, Page 2, Paragraph 3, the last sentence should read: The only staff not on-site that week will be Michelle Chalin, the Public Housing Administrator. Page 2, Section B, Report of the Management Company, Page 2, Paragraph 4, the following sentences should read: In discussion, Julienne Wyckoffreported that she has received many phone calls from residents of the City that the geese are gone from the park outside of the Parkview Villa residents area park. Ms. Wyckoff commented that when she contacted Kevin Hansen, the Public Works Director, he said that they aren't trying to remove all of the geese at once, but they will be moving a few at a time. Page 2, Bid Considerations, Agreement for Lawn Maintenance and Snow Removal Services, Paragraph 5, the second sentence should read: Mr. Nedegaard was going to purchase the property, but, has recently requested an extension on the purchase of the property. Page 3, Section E, Status Report - Acquisition of Central Avenue Properties, Paragraph 5, ADD the following sentence: In regards to this proiect, the consideration of funding would be primarily from CDBG Funds. All Ayes. MOTION CARRIED. Economic Development Authority Meeting Minutes July 18, 2000 Page 2 2) Financial Report and Payment of Bills a. Financial Statement - June, 2000 b. Payment of Bills - June, 2000 MOTION by John Hunter, seconded by Marlaine Szurek, to approve Resolution 2000-09, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the financial statements for June, 2000 and approving payment of bills for June, 2000. All Ayes. MOTION CARRIED. REPORT OF THE MANAGEMENT COMPANY A. Michelle Chalin, Parkview Villa Public Housing Administrator. Ms. Chalin stated that Millar Elevator company is currently working on the large elevator at this time. The small elevator is up and running. However, just in the last three days it has broke down. Millar Elevator Service has responded quickly to the repair call. June 12, 2000 a circuit panel shorted out in unit 212 and all of the units above it. Power was restored to every unit on that same day except unit 212. The occupant of unit 212 was occupying the unit. Therefore, her rent was reimbursed to her for the time period of June 12a' thru July 1st. The electrician stated the problem arose due to the panel casing being installed too close to the circuit breaker. In discussion, Pres. Ruettimann asked Mel Collova, the Cities Building Official, would the panel casing being installed too close to the circuit breaker cause the power outage? Mr. Collova stated that yes, it could have got too hot. Pres. Ruettimann requested that Mel Collova visually check the electrical system for the other units at Parkview to see if some corrections need to be made there also. 4607 Tyler had their inspection from Anoka County today for the HOME Program with no violations. She will be receiving a written letter in this regard. Monday, July 10~ Michelle Chalin returned to Parkview Villa. She then gave her resignation. Her last day will be July 28, 2000. Ms. Barnes reported that Anita Kottsick will be managing Parkview Villa half of the day and the other half of the day at Columbia Heights. Another associate will take the other half of the day at Parkview Villa so that there will always be staffpresent at Parkview Villa. Ms. Barnes stated that the new associate will have to go to a training course. Nan McKay is just one of the organizations that put on the training course. Mr. Ruettimann asked for a copy of the course to have on file with the EDA. On July 28~, 2:00 p.m., at Parkview Villa there will be a farewell party for Michelle Chalin. Ms. Barnes commented that she was very grateful for Michelle Chalin and Anita Kottsick's work that they have done for Crest View Management. The Residents Management Reports are completed and there was nothing under the level of satisfactory recorded. Overall the report was good news and she again thanked Michelle for her hard work in managing Parkview Villa. Ms. Barnes also added that the EDA shouldn't be too concerned about the amount of mover of units at this time. This is common for buildings between 10-15 years of age in the buildings that she manages. Pres. Ruettimann asked if Michelle Chalin has ever done an exit report? She responded that this was her first job. He asked that she do one for Crest View Management and the EDA's files. The report will help the EDA and Crest View Management to assess how she ran the facility, how she felt that the program runs, etc. AMENDMENT TO OCCUPANCY POLICIES Mr. Schumacher explained that this report clarifies how much preparation is necessary for internally changing units. Currently the Occupancy Policy specifies a fee for internal unit moves. The current fee is $125 and does not cover the actual cost of preparing the unit for occupancy. Staff is recommending $400 be used as a base amount for this cleaning and painting process. This policy would take effect as of September 1, 2000 for all tenants, including those on the internal waiting list prior to September 1, 2000, unless the move has already been arranged. Economic Development Authority Minutes July 18, 2000 Page 3 In discussion, Ms. Wyckoff questioned if it was ever considered to keep the mount at $125, but saying to the resident that you won't be able to change units for two years? Ms. Chalin stated that she remembers that most of the residents have been there for well over two years and so that would make them eligible to change units at this time based on the amount of time that they have been in the building. Ms. Hamms stated that each resident, including herself pulled up their own carpet in their apartment and then cleaned the floor underneath it. She has lived there 14 years and is seriously considering moving to the east side of town due to the noise, smell, traffic and environment around Parkview Villa. Another resident stated she could hear people talking loudly from her window also. Ms. Barnes stated that the complaints she receives from residents is noise late at night and the smell from the kitchen and garbage from the mall behind Parkview Villa. Mr. Ruetfiman asked what time do they hear the tracks in the morning? The residents responded that they hear them at 5 a.m. Mr. Ruettimann asked Mci Collova if there is anything that can be done about the smell from the restaurant behind Parkview Villa? Mr. Collova reported that he has checked it out in the past and found no unusual problems, but he will check into it again. Ruetfimann asked Walt Fehst to talk to the owners of the businesses behind Parkview Villa to see if there is anything that can be done about the noise problems that the Parkview Villa' residents are concerned about. MOTION by Juhenae Wyckoff, seconded by Marlaine Szurek, to amend the Occupancy Policy of Parkview Villa to reflect a relocation fee of $400 effective September 1, 2000. All Ayes. MOTION CARRIED. CITIZEN FORUM TO ADDRESS EDA ON MATTERS NOT ON AGENDA. Mr. White commented that there is a public microphone system in this room, he would like to see the EDA use it at the next meeting. Pres. Ruettimann responded that he wasn't aware of one available, but he will use it in the future. His second question was about the properties on Lookout Place, what is the City doing with them? Mr. Schumacher reported that we have been doing a clean up of the property at this time. Mr. White also asked how soon would the homes be demolished? Mr. Schumacher responded that the City does own the unit. The residents moved out last week. Staff is currently working on cleaning up the homes. It will be a matter of time until everything is cleaned up. The Fire Department will possibly be using the homes for fire training. Mr. Hunter asked if we have to relocate the residents of the properties? Mr. Schumacher reported that both families have made other arrangements at this time. RECOGNITION~ PROCLAMATIONS~ PRESENTATIONS, GUESTS - None. PUBLIC HEARINGS - None. ITEMS FOR CONSIDERATION A. Other Resolutions - None. B. Bid Considerations - None. 1) Approve Change Order/12- Millar Elevator MOTION by John Hunter, seconded by Marlaine Szurek, to approve Change Order Number 2 for Millar Elevator Service Company in the amount of $750 with payment out of proper funds; and furthermore, to authorize the President and Executive Director to'enter into an agreement for the same. All Ayes. MOTION CARRIED. B. Other Business 1) Section 8 Report. Randy Schumacher reported that staff is working diligently on the transfer of the program by October 1, 2000. MOTION by John Hunter, seconded by Don Jolly, to receive the Section 8 Report as written. All Ayes. MOTION CARRIED. 2) Approval of Engagement from McGladrey & Pullen, LLP Mr. Schumacher reported that McGladrey & Pullen, LLP is a very reputable firm. Mr. Rothschild has recently turned in his resignation. Mr. Fehst and Mr. Schumacher both expressed a positive response to using this firm to help the EDA accomplish the transfer of Section 8 back to Metro HRA. Mr. Schumacher thanked Chef Bakken and Julie Wesley as well as other staff members that have helped pull this programs paperwork together so that we can Economic Development Authority Minutes July 18, 2000 Page 4 transfer it hopefully by September 1, 2000. MOTION by Gary L. Peterson, seconded by John Hunter, to approve the engagement letter from McGladrey & Pullen, LLP for accounting services related to the EDA's Section #8 Program and to authorize the President and Executive Director to execute same. All Ayes. MOTION CARRIED. 3) Acquisition of Main Street Properties Walt Fehst gave the report of the Main Street properties. The property at 3855 Main Street was valued at $55,000, and the property at 3919 Main Street was valued at $66,000. For the property at 3855 Main Street, staffwill be drawing up a Purchase Agreement for the property. Both o£ these units have come before the EDA Board and the City Council for evaluation. The City Council's decision was to purchase, demolish and rebuild on the property at 3855 Main Street. He would like to ask the EDA to see if they are in agreement to purchase the property at 3919 Main Street to clean it up and sell the property for redevelopment. He could not recommend at this point that the EDA spend any money at this time for the property. He does recommend that we negotiate with the City Council to borrow funds from the abatement fund. The Council discussed a parmership with them in the purchase of the 3919 property. The City is currently working on two reports; 1) Section 8 Transfer; 2) TIF to see what funds are available from them for this project. In discussion, Pres. Ruettimarm would like to check over some of the funds available with staff and he would be definitely interested in a joint partnership program with the City. He also questioned if the units are vacant? Mr. Fehst reported that one unit is vacant and the other is currently housing a family. He requested that the Board permit the Director and Assistant Director to come up with some kind of agreement on funding. Mel Collova reported that he felt that the residents that are interested in the properties would possibly move quickly on the purchase of the properties if the City isn't interested in the purchase. Mr. Collova stated that one of the owners does have an offer for the property. Julierme Wyckoff felt that if the Council has already authorized the one piece of property to be bought and demolished, why is the EDA Board questioning this purchase? What is the advantage for Mr. Knox to sell the property to the City? Mr. Fehst reiterated that he felt the same way about the purchase of the property. Again, he stated that he felt we could use the abatement funds for the property. It should be noted that one of the owners (Mr. Knox) was present at the meeting. Mel Collova stated that Mr. Knox does have an offer for $98,000. Mel also expressed that currently we are talking about CDBG funds and we should look at What other funds are available. Pres. Ruettimann and Gary Peterson stated that they felt that this house was in good shape and we should probably let the owner sell the property and the EDA should focus on other areas of land in the City that really are in bad shape instead of purchasing this properly. The general consensus by the EDA members is that Mr. Knox should go ahead and sell his property if he has a buyer for it. Gary Peterson requested staff study the funds that could possibly be used for the purchase of the property. No motion was made at this time until staff researches more into what funds can be used for the purchases. ADMINISTRATIVE REPORTS Report of the Deputy Executive Director. 1) 4216 Central Avenue Mr. Schumacher reported that Mr. Nedegaard has talked to staff in regards to the property at 4216 Central Avenue N.E. If there isn't any significant changes in his building plans, staffwill go forth with the purchase of the property. Mr. Nedegaard has agreed to purchase the land and is looking at changing his plans for the property. The plans should be into the EDA sometime later this week. In discussion, Mr. Jolly asked that Mr. Schumacher pay special attention to the retaining wall in the back of the Economic Development Authority Minutes July 18, 2000 Page 5 property. He had looked at the wall recently and it looks like it will not hold up. Mr. Hunter stated that Mr. Nedegaard has had plans to build a garage in the back area so the wall would be taken down. The question raised by Ms. Wyckoffwas that when we sell the property will the money go into the EDA funds? Mr. Schumacher and Pres. Rueittimann confn'med that the dollars will go into the EDA Funds. 2) Update of I-IUD Form 50058 Family Reporting Mr. Schumacher reported on the HUD Form 50058% Family Reports. Parkview Villa does not have the proper hardware available, so the Community Development Staff has be entering the information into the HUD forms for Parkview staff. The reports are currently done and submitted to HUD with 90 reports entered and a total of 85% accepted. The manually written forms prepared by Parkview Villa staff will be sent back to Parkview Villa staff in the next week. In discussion, Ms. Barnes stated that Anita Kottsick did a tremendous mount of work in filling out the reports in a short period of time and she would like to thank her for this. Normally, this would take months to fill out these reports. Mr. Schumacher would like to recommend that we purchase a program to help Parkview Villa do the reporting themselves in the future. Mr. Ruettimarm suggested that we could possibly have someone create a program that we could have staff enter the information without spending $20,000. He would like to have a program that complies with all of HUD's roles. Mr. Schumacher expressed that Parkview Villa does not have any software at this time to input the HUD forms that are to be filed. Pres. Ruettimann stated that we have been working on this software program for a few years and have gotten nowhere. He felt we should use our I.S. Department resources and knowledge to get the forms submitted on time and we need to have someone fred out the exact software needed; forms, receipts, basic information, etc. Ms. Barnes clarified that currently we are duplicating our work. Parkview Villa Management is hand writing the forms and then the EDA staff is inputting it into the computer and transmitting it to HUD. If we had the program at Parkview Villa they could enter the information in at one time. She stated that two things need to happen in this regards: 1) find out what HUD requires, and 2) Check into the cost of a program that will work for all of the requirements. Mr. Schumacher agreed with Pres. Ruettimann that the Information Services staff at City Hall should be involved in the purchase of the software as we do not have the knowledge of software programs that they do. Pres. Ruettimarm requested that Randy Schumacher and Parkview Villa Staff work together to come up with what requirements of software and forms are needed. B. Report of the Executive Director-None. C. Committee/Other Reports. 1) Resident Council- Pat Jindra Pat Jindra reported that she has submitted in writing the minutes of the last two meetings with the Parkview Villa residents. 2) Six Month Report of Resident moves at Parkview Villa - Pat Jindra Pat Jindra reported that there was 20 internal moves in Parkview Villa in the last six months. Ms. Chalin said that number included residents that both changed apartments and residents new to the facility. In discussion, it was determined that there was a misunderstanding in what Pat Jindra asked Ms. Chalin for, so the incorrect amount was given to Pat Jindra. For January 1 to June 30, 2000, the correct amount is 20 total unit turnovers for Parkview Villa and 2 for 4607 Tyler Slzeet NE. The actual amount of internal moves was zero for the four plex, 3 for the north building, and 4 for the south building. There were nine new renters moving into the North building, 4 new renters moving into the South building, and 2 new renters moving into 4607 Tyler Street NE. during this period. Pres. Ruettimarm requested that Pat Jindra meet with the residents of Parkview Villa on a quarterly basis in the Economic Development Authority Minutes July 18, 2000 Page 6 MOTION by Don Jolly, seconded by Marlaine Szurek, to request payment for Pat Jindra for attending meetings with Parkview Villa residents on a quarterly basis. All Ayes. MOTION CARRIED. OTHER CONCERNS Mr. Peterson expressed his concern that on the South side of the Parkview Villa North building he noticed some of the siding possibly buckling. Pres. Ruettimann asked that Mel Collova, the Building Official, take a look at the building for possible repairs needed. MEETINGS Pres. Ruettimann stated that the next EDA Meeting cannot l~e held on August 15, 2000, due to many of the EDA Commissioners schedules. He directed staffto look at possibly another day between the 14~ and 21~t of August. Mr. Schumacher will check this out with the City schedule and EDA Staff and then staff will contact in writing all of the Commissioners, Parkview Villa staff, Crest View Management, Executive Director, and Community Development Staff. ADJOURNMENT MOTION by Pat Jindra, seconded by Gary Peterson, to adjourn the meeting at 8:37 p.m. All ayes. MOTION CARRIED. Respectfully submitted, Cheryl Bakken Recording Secretaxy H:~EDAminutes\7-18-2000 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: August 16, 2000 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTIVE NO: DEPARTMENT: EDA DIRECTOR /~% ~APPROVAL ITEM: Financial Report and Payment of Bills BY: Ken Anderson BY: DATE: August 7, 2000 L BACKGROUND: The bound Financial Report for July 1, 2000 Check Listing (green sheets), and draft Resolution 2000-10 are attached for review. The enclosed Financial Report lists the Revenue Guideline (pink sheets), the Expenditure Guideline (yellow sheets), Expenditure Guideline with Detail (white sheets), and Balance Sheet (blue sheets), for each fund and department. The report covers the activity in the calendar (fiscal) year fi:om January 1 through July 31, 2000. The Check History shows each fund with an expenditure history during the month of June, 2000. The total disbursements by fund are shown at the top of the listing. ~-' RECOMMENDATION: Staff will be available to answer specific questions. If the report is satisfactorily complete, we recommend the Board take affirmative action to receive the Financial Report and approve the payment of bills. RECOMMENDED MOTION: Move to approve Resolution 2000-10, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement for July, 2000 and Payment of Bills for the month of July, 2000. EDA ACTION: }.l:'conscnr ~i- 16-20(~OFinRcp.wpd EDA RESOLUTION 2000-1--0 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR JULY, 2000 AND PAYMENT OF BILLS FOR THE MONTH OF JULY, 2000. WHEREAS, the Columbia Heights Economic Development Authority (EDA) is required by Minnesota Statutes Section 469.096, Subd. 9, to prepare a detailed financial statement which shows all receipts and disbursements, their nature, the money on hand, the purposes to which the money on hand is to be applied, the EDA's credits and assets and its outstanding liabilities; and WHEREAS, said Statute also requires the EDA to examine the statement and treasurer's vouchers or bills and if correct, to approve them by resolution and enter the resolution in its records; and WHEREAS, the financial statement for the month of July, 2000 and the list of bills for the month of July,2000 are attached hereto and made a part of this resolution; and WHEREAS, the EDA has examined the financial statement and the list of bills and finds them to be acceptable as to both form and accuracy. NOW,THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the attached financial statements and list of bills, which are attached hereto and made a part hereof, and they are found to be correct, as to form and content; and BE IT FURTHER RESOLVED the financial statements are acknowledged and received and the list of bills as presented in writing are approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution and attachments are to be made a part of the permanent records of the Columbia Heights Economic Development Authority. Passed this day of , 2000. MOTION BY: SECONDED BY: AYES: NAYS: Robert Ruettimann, President Attest by: Cheryl Bakken, Secretary H;qt.¢solutionsk2000-10 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: August 16, 2000 AGENDA SECTION: Consent ORIGINATING EXECUTIVE NO: t~ .. ~-3 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Approve Elevator Modernization Pay BY: Kenneth Anderson ~ ~BY: Application #3 & g4 DATE: August 8, 2000 BACKGROUND/ANALYSIS: Please find attached a copy of the third and fourth request for payment, Application #3 and #4, for Elevator Modernization at Parkview Villa North. These requests for payment have been submitted by Millar Elevator Service Company which is the contractor doing the modernization work for the two elevators at Parkview Villa North. A letter from Ted Smith, President of Elevator Advisory Group, is attached and recommending payment in the amount of $41,881.00 for application #3 and $48,224.00 for Application g4, for a total amount of $90,105. You will note from the attachments that the payment is for costs incurred related to engineering and permits, cabs, subcontract work, labor, wiring and duct work, and safety and miscellaneous items. The total cost incurred to date is $249,281 however, $24,928 in retainage in the amount of 10% of the completed work is being withheld. RECOMMENDATION: Staff is recommending authorization of payment to Millar Elevator Service Company in the total amount of $90,105. RECOMMENDED MOTION: Move to accept the work for Pay Applications #3 and g4 and to authorize payment of $90,105.00 to Millar Elevator Service Company of Cleveland, Ohio. Attachments: Elevator Advisory Group July 21,2000 letter, Application and Certificate for Payment #3 and EDA ACTION: ~.' \v~nsent\Application #3 & #4.wpd July21, 2000 Mr. Kenneth R. Anderson Deputy Executive Director City of Columbia Heights, EDA 590 40th Avenue NE Columbia Heights, MN 55421 RE: Elevator Modernzition Pay Appalication #3 & #4 Parkview Villa North Bldg., Columbia Heights Dear Ken, We have received and reviewed bom Millar Elevator, the enclosed Pay Application #3 & #4 for the Parkview Villa North Building elevator modernization project. We have also reviewed the equipment and job site. We are approving the mount requested, $41,881.00 for Application #3 and $48,224.00 for Application #4. We recommend that the pay application be processed for payment. Enclosed is a copy of the invoice for your records. Ken, if you have any questions, please call. Sincerely, R.T. Smith President 289 E. 5th St. · Suite LL101 · St. Paul ° Minnesota · 55101 · (651) 293-0595 ° Fax: (651) 224-6758 u~ 0 e~l 0 o Millar Elevator Service Co. WAIVER OF LIEN - Partial STATE OF OHIO ) ) COUNTY OF LUCAS ) TO ALL WHOM IT MAY CONCERN: Whereas, we the undersigned, Millar Elevator Service Company, have been employed by THE CITY OF COLUMBIA HEIGHTS to MODERNIZE (2) ELEVATORS at the building known as PARKVIEWVILLA - 965 40TH AVENUE N.E. , City of COLUMBIA HEIGHTS, State of MINNESOTA. Now, therefore, know ye, that we the undersigned, being requested to give a partial waiver, for and in consideration of the sum of FORTY ONE THOUSAND EIGHT HUNDRED EIGHTY ONE Dollars, upon payment to us of said unpaid sum, do hereby waive and release to the extent of the said amount only any and all lien, or claim, or right to lien on said above described building and premises under the Statutes of the State of MINNESOTA relating to Mechanics' Liens, on account of labor or materials, or both, furnished to the extent of this payment only, fo~ said building or premises. Given under our hand and seal this 25TH day of MAY , A.D., 20 00. Millar Elevator Service Company By //~/~ ~~'-'~ (Seal) Millar Elevator Service Co. WAIVER OF LIEN. Partial STATE OF OHIO ) ) COUNTY OF LUCAS ) TO ALL WHOM IT MAY CONCERN: Whereas, we the undersigned, Millar Elevator Service Company, have been employed by THE CITY OF COLUMBIA HEIGHTS to MODERNIZE (2) ELEVATORS at the building known as PARKVlEWVILLA - 965 40TH AVENUE N.E. , City of COLUMBIA HEIGHTS., State of MINNESOTA. Now, therefore, know ye, that we the undersigned, being requested to give a partial waiver, for and in consideration of the sum of FORTY EIGHT THOUSAND TWO HUNDRED TWENTY FOUR Dollars, upon payment to us of said ; unpaid sum, do hereby waive and release to the extent of the said amount only any and all lien, or claim, or right to lien on said above described building and premises under the Statutes of the State of MINNESOTA relating to Mechanics' Liens, on account of labor or materials, or both, furnished to the extent of this payment only, for said building or premises. Given under our hand and seal this 13TH day of JULY , A.D., 20 00. Millar Elevator Service Company Byj;?'~ ''~ .,--/ '-.-:'~ (Seal) COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: August 16, 2000 AGENDA SECTION: Consent ORIGINATING EXECUTIVE NO: k4 _ I~.. ~ DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Section 8 Report BY: Ken Anderson ~ ' BY: DATE: August 7, 2000 BACKGROUND: Attached is the Section 8 Report which details all Section ~ participants leased up through August 1, 2000. The Columbia Heights EDA was issued an allocation of 25 Vouchers and 25 Certificates. Of those, we have issued 32 Vouchers and 4 Certificates for a total of 36 which is a decrease of nine from last month. This decreases our utilization to 72 percent. The reason for the significant reduction is that several participants were reflected as active by the previous staff member, however, they were actually inactive and should not have been included in the utilization report. By October of 2000, all Certificates must be phased out and new Housing Choice Vouchers issued at the time re-certifications are completed. McGladery and Pullen, LLP will be submitting a report by weeks end with their fmdings to reconcile the Section 8 Program records with the information maintained by the Finance Department. Their work will include preparation of forms necessary to be submitted to HUD for budgeting, utilization, reimbursement, etc. A retired individual was engaged as an independent contractor to assist with administration of this program and started on July 10, 2000. Staff has had continuing discussions with Metro HRA staffto discuss the ~ sition of our program to the Metro HRA. It is currently anticipated that the last housing assistance payments to be made by the EDA/HRA will be for September 1, 2000 payments. After that time, file administration will be performed by Metro HRA staff. As of this writing, participant files have been reviewed and updated with re-certification dates for the months of October through February. These files are ready to be transferred to the Metro HRA. March and April are currently being reviewed. Also, there are five (5) new lease-ups in process which are being administered by the Metro HRA, therefore, they are not reflected in our August Monthly Report. ANALYSIS: The number of port-outs for July, 2000 is at five(5). This is an increase of two from last month. Of the five(5), four(4) are Vouchers and one(l) is a Certificate. Although they do not reside in Columbia Heights we continue to count them in our utilization report unless they are absorbed by the new jurisdiction. Otherwise, the jurisdiction will bill us for the Housing Assistance Payment and 80 percent of our administratiye fee. The number of portability units has increased by five(5) from last month. We currently administer a total of 73 portability Vouchers and Certificates. This breaks down into 56 Vouchers and 17 Certificates. These are participants that were originally 'issued their assistance in another jurisdiction but have elected to move into Columbia Heights. For the portability vouchers and certificates, we bill the originating jurisdiction for the Housing Assistance Payment and 80 percent of their administrative fee. RECOMMENDED MOTION: ~[_~achments ACT I ON: Move to receive the Section 8 report as written. h:\consent\8-16-2000section$.wpd Section 8 Monthly Report Participants Leased-Up Effective August 1 ,200O Section 8 - Columbia Heights Bedroom Size No. of Certificates No. of Vouchers Total 0 0 0 0 1 0 0 0 2 4 18 22 3 0 14 14 4 0 0 0 Total 4 32 36 Total Admin. Fees $213.00 $1,704.00 $1,917.00 ($53.25) Section 8 - Port Ins Bedroom Size No. of Certificates No. of Vouchers Total 0 0 1 1 1 6 22 28 2 7 24 31 3 3 9 12 4 1 0 1 Total 17 56 73 Admin. Fee ($39.76) $675.92 $2,226.56 $2,902.48 Total Admin. Fee's $675.92 $2,226.56 $2,902.48 Section 8 Monthly Report August 2000 Page 2 Port Outs Bedroom Size No. of Certificates No. of Vouchers Total 0 0 0 0 1 0 1 1 2 0 2 2 3 1 1 2 4 0 0 0 Total 1 4 5 Total Admin. Fees $10.65 $42.60 $53.25 ($10.65) G:~Section 8~Section8monthlyreport forAugust2000.wpd i Par. kview Villa Hous,ng Complex 965 N.E. 40th Avenue, Columbia Heights, MN 55421 .AUG 8 2OOO (612) 788-6 )55 . Fax (612) 782-0857 DATE: AUGUST 7, 2000 TO: KEN ANDERSON, DIRECTOR OF COMMUNITY DEVELOPMENT; EDA SHIRLEY BARNES, CHIEF EXECUTIVE OFFICER; CREST VIEW COMMISSIONERS; COLUMBIA HEIGHTS EDA BOARD OF DIRECTORS; CREST VIEW FROM: ANITA KOTTSIC ,K~, HOUSING ADMINISTRATOR KARl WILSO~-tOUSING MANAGER RE: JULY/AUG MANAGEMENT REPORT FOR PARKVIEW VILLA & 4607 TYLER PHYSICAL PLANT: Elevator modernization project- Work is progressing. The weekend of July 22/23 the small car in the North building experienced problems. Bill Gault, Maintenance Coordinator was within the building monitoring the elevator many hours throughout the weekend and the technician from Millar elevator was out also several times working through the problems. This elevator has experience one other incident of interrupted service on July 26 the doors did not close properly. A technician was out and did necessary repair, it was thought that in the process of a move in or move out the electronic eye was bumped. Inspecting the circuit panel has been added to the Move Out Unit Preparation Checklist. A smoke alarm within an apartment malfunction occurred on Saturday, August 5, 2000. Maintenance Coordinator was able to fix the problem and no outside vendors were needed. OCCUPANCY: NORTH BUILDING: APT # VACANCY DATE 207 June 30 212 June 30 405 Aug. 15 NAME MOVE-IN DATE Delmar Hobson Aug. 4 Jackie Rushenburg (internal move) 7/25/00 John Cole Sept. 1 Owned by the EDA of the City of Columbia Heights Managed by Crest View Management Services Equal Housing Opportunity Agency 409 Sept. 1 503 Aug. 31 509 March 1 609 June 30 801 June 30 910 June 30 John Morgenthaler when apartment is ready Edwin Davis Jr. when apartment is ready Miilar for elevator modernization project Bernard Baier when apartment is ready David Trimbo August 4 Rae Stevens August 1 SOUTH BUILDING: APT# VACANCY DATE 115 Aug. 23 317 Aug. 1 414 June 30 NAME M/M Super Marion Booth Dorothy Keller MOVE-IN DATE when ready (internal move) Aug. 11 (internal move) July 25 (internal move) Waiting list totals are as follows: Parkview Villa North 17 CH Residents 29 Non-residents 4607 Tyler 4 CH Residents 8 Non-residents Parkview Villa South 28 CH Residents 15 Non-residents MISC: For informational purposes the Parkview Villa calendar is attached. No additional information has been received nor changes made regarding the security at Parkview Villa since the last EDA report in July. Anita Kottsick, Housing Administrator began working at the Parkview Villa office on July 31: Kari Wilson, Housing Manager began working at the ParkviewVilla office on August 7. Kari has been a great asset to Crest View Corporation and in addition to her duties as Parkview Villa and 4607 Tyler Housing Manager, Kari will continue her role as Crest View Lutheran Home Director of Social Services. Anita will primarily spend her afternoons at the ParkviewView Office and Kari will primarily spend her mornings at the Parkview Office. Kari will be reporting to Anita and Anita will be available for any emergency situation that should occur. Residents were given a notice regarding the hiring of Karl. Kari will be introduced at the August 14 Resident Council meeting. At the request of the EDA, Michelle Chalin has provided the attached Agenda for the Public Housing Manager Training Seminar through NAHRO and her Exit Report. 7/19/00 The following is an agenda for the Public Housing Manager Training through NAHRO. The other organi?ation that offers the training is Nan MeKay. Day 1 8:30am - 4:30pm Introductions Objectives Expectations Roles and Responsibilities of the Public Housing Manager Major Functional Components of Management Day 2 8:30am - 4:30pm Personal Management Style Managemem Style Discussion Occupancy - overview - eligibility/rent determinations - leasing procedures and legal requirements Day 3 8:30am - 4:30pm Lease Enforcement Grievance Procedures Rent Collections Communication Problem Identification/Resolution Day 4 8:30am - 5pm Decision-Making Consensus Maintenance Security "Bringing It All Together" A Case Study fi.om the PHM Point of View Evaluations/Feedback Review Session for Certification Exam Closure Day 5 8am- 10am PHM Examination EE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: August 16, 2000 AGENDA SECTION: Other Business ORIGINATING EXECUTWE NO: ~- O_~]. DEPARTMENT: EDA DIRECTOR tf~, APPROVAL ITEM: Approve Payment of MHFA BY: Kenneth Andersox[~ [BY: Improvement Loan DATE: August 11, 2000 ISSUE STATEMENT: Request payment of the remaining balance of the MHFA Home Improvement Loan number 1103055. BACKGROUND/ANALYSIS: Staff received a letter ~n January 27, 2000 regarding a Minnesota Housing Finance Agency Minnesota Fix-Up Fund loan that was originated by the EDA on December 12, 1997. The loan was issued to Sherney and Catherine Gaf]ken in the amount of $6,527.16. The property was sold in October of 1998 and the loan went into default. Sherney Gaf]ken payed 1/3 of the remaining balance at closing and stated that Catherine Gafjken's daughter received 2/3 of the property sale proceeds. Therefore, he believes it should be her daughters responsibility to pay the remaining balance. As you can see in the letter fi:om the MHFA that she has refused to pay the remaining balance. The Deputy Executive Director forwarded a letter to Mr. Gaf]ken on March 30, 2000 requesting payment of the remaining balance by April 7, 2000 (see attached copy). In a letter received in response on April 11, 2000 (attached), he stated it was our duty to collect the unpaid balance fi:om Mrs. Gafjken's daughter, Bonnie Conom. This matter was referred to the EDA's legal counsel who forwarded a letter June 1 and a follow up letter on July 1, 2000 demanding repayment. As of this writing we have received only a letter dated June 19, 2000 fi:om Mr. Gafjken stating it was our duty to collect the unpaid balance from Ms. Conom (copies attached). Our legal counsel is advising that we make payment to the MHFA for the unpaid balance and seek payment from Mr. Gafjken through the Conciliation Court process. This recommendation is based on the fact that we have not received payment after submitting three letters and we are accruing a daily per diem (or interest charge) of.66 cents per day. RECOMMENDATION: Based upon the failure to collect the remaining unpaid principal balance of $3,986.72 plus the unpaid per diem, staff is recommending the EDA make payment to Compu-Link Loan Service, Inc. for the unpaid balance of $4,377.80 as of 8/15/2000 plus $ .66 daily per diem, and $350 to MHFA for reimbursement of the loan origination fee and furthermore, we are recommending the EDA authorize staff to pursue repayment through the Conciliation Court process. RECOMMENDED MOTION: Move to recommend payment to Compu-Link Loan Service, Inc. for the unpaid MHFA Home Improvement Loan number 1103055 in the total amount of $4,377.80 as of 8/15/2000 plus $ .66 daily per diem and $350.00 to MHFA out of proper funds; and furthermore, to direct staff to seek repayment fi:om the loan recipient in Conciliation Court. Attachment: ACTION: h: \Consent \Approve MHFA Loan-Gaf j ken J~/ll/O0 MINNESOTA HOUSING FINANCE AGENCY HOUSING HO,~ES DIV August I 1, 2000 RECEIVED Mr. Ken Anderson Columbia I-Ieigbts Economic Development Authority 590 40~ Ave NE Columbia tteights, MN. :5.542! COMMuNITy DEV£LOPMEN-] RE: Shcrney And Catherinc Gafkjen MH~A Homc improvement Loan 1103055 Dear Mr. Anderson: Pcr our telephone conversation this morning, the pay-off on this loan as of August 15, 2000 is as follows: Pay-off as of 8/15/2000 $4,377.80 Loan origination Fee +$ 350.00 Total pay-off $4,727.80 Daily Pet Diem after 8/15/2000 is $ .66. The pay-off check should be mailed m Compu-Link Loan Service, Inc. attention Ms. Tamara Cook, Compu-Link Loan Service, Inc., 3900 Capital City Blvd, Lansing, MI. 48906. The $350.00 loan fee should b~ mail~ to my attention ar Minnesota Housing Finance Agency (MHFA). If you have any questions, plea.~ call me at 651-296-8835. Sincerely, Portfolio Managemcnt/QuaJity Control CC: Tamara Cook, Compu-Link'Loan Service, Inc. 400 Sibley Street, Suite 300, St. Paul, Minnesota 55101 (651) 296-7608 Telecommunicalions Device for the Deaf (TDD) (651) 297-2361 Equal Ol~ity Housing and Equal Opporlunily Emp/oyment I OB-OS-gO 1Z:43 From-KENNEDY & GRAYEN +61Z3379310 T-BgB P.OZ/05 F-ZZ; August 3, 2000 Ken Anderson City of Columbia Heights 590 40a Avenue. N~ Columbia Heights, MN 55421-3835 BY FACSIMILE Deal' Keri: Attached are the letters to and from Mr. Ga/jken. I have nor received any response to our last letter. Attachments ~ 0JG-I~4114~'1 CL2US-12 08-03-00 1Z:43 Front-KENNEDY & G~AVEN +61Z357931Q T-gB~ P.03/05 F-ZZ6 ~?lJ Pdhbury C.¢ncct (612) 337-9300 Klcp~.~ {612} 337-9310 ~ June l, 2000 Sherney V. Gaikjen 105 Court Avenue South Sandstone, Minnesota 55072 Re: Columbia Heights Economic Development Authority Loan Dear Mr. Oatjk~n: The Columbia Heights Economic Development Authority has asked us [o contact you regazdtng ~e amount it is owed on thc borne improvement loan you received tn 1997. Wlule ! tmdezstand that you intended that the loan be repaid from proceeds of the sale of your home, you are personally responsible for the amount due as a signer on the note. I must therefor~ request Ihat you send us the amount due, $4,255.96 plus 66¢ for each day between February 11, 2000 to the dale of payment. Failure to make payment as required will leave the Economic Development Authority with no choice but to consider tts full range of legal options. If you have any questions, please contact mc. Grcensweig ~ an collect a debt and any information obtained will be used for that purpose. Unless you noilly this office within 30 days after receiving this notice that you dispute the yalidity of this debt or any portion thereof, this omce will assume this debt is valid. If you notify this omce in writing within 30 days of receiving this notice., this omce will obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgment or verification. If you reqlte~t this office in writing within 30 days after receiving this notice, this office will provide yon with the name and address of We original creditor, if different from the current creditor. DJG-181326vl CL~QS-I I I 08-03-00 1Z:43 From-KENNEDY & GRAVEN *$1Z35T~310 T-gg8 P.~4/05 F-ZZ$ ~ne 19~h, 2000 f~ar Danicl J. Gre~w6g, This letter is in response to the l~e~ re~, ueslh~g hnmedia~¢ paym~n! ofd~ hom~ /mprov~m loan #1103055. This shook] have been ~a~cn care of by the Wahh Tick comlmny and th~ M/m~om Finale Asency. The t~!~e offl~ loan ~ wm ~o~ m ~ ~ of~ ~ T~ I. ~ auom~y ~r Ca~ ~j~n ~ I ~ my ]/3 ~e of~ ]o~ ~ ~ J~.~y of ~. ~ Corm ~s ~ ~d ~ ~ I ~ ~~ ~ m g~ ~ Corm ~o pa~ ~ ~vc ~n Her ~ b: ~ ~ ~a Comm 310 Olmn C~. B~ lL ~510 (630)761~557 0~-0~-00 IZ:43 From-KENNEDY & G~AVEN ~61Z3579~10 T-~l~ P.05/05 F-ZZ$ July 7, 2000 Sherney ¥. Gafkjen 105 Court Avenue South Sandstone, Minnesota 55072 Re: Columbia Heights Economic Development Authority Loan Dear Mr. Gafl~jen: Thank you for your lerte, r in respome to our request for payment of your home improvement loan owed to the Columbia Heights Economic Development Au~ority. While I understand your belief that Ms. Conom is responsible for the debt, the loan is in your nn_m_e azld the £conomic Development Authority must thertforc look to you for payment. Any contribution from her is an ~sue that you must work out between ~e two of you. In the meantime, I must reiterate our demand for payment of the loan. As you will recall, thc amount du~ is $4,255.96, plus 66~ for each day between February 11, 2000 to the date of paym~mt. The Economic Development Authority will appreciate your immediate attention to this matter. If you have any questions, please contact me. eenswcig This is an attempt to collect a debt and any information obtained will be used for that ,purpose. CL2uS- I z MINNESOTA HOUSING FINANCE AGENCY JAN 27 2 00 January 26, 1999 Mr. Ken Anderson Columbia Heights Economic Development Authority 590 40th Ave NE Columbia Heights, MN 55421 RE: Shemey and Catherine Gafkjen MHFA Home Improvement Loan 1103055 Dear Mr. Anderson: The above-referenced loan was originated by your Agency in December 12, 1997 and assigned to the Minnesota Housing Finance Agency (MHFA) Catherine Gafkjen is deceased and Shemey Gafkjen sold the property in October 1998. Shemey Gafkjen paid one third of the remaining balance and stated that Catherine Gafkjen's daughter received two-thirds of the property sale proceeds and that Compu-Link Loan Service, Inc., our loan servicer, should contact the daughter for the remaining balance. Catherine Gafkjen's daughter refuses to pay the remaining balance. The remaining principal balance is $3,986.72. By way of background, after the property was sold in October 1998, the loan went into default. This loan was underwritten by your Agency and purchased by MHFA as a loan secured with a real estate mortgage. In checking the title to this property we find the intended mortgage and assignment of mortgage were never recorded with the Anoka County Recorder, thereby making this loan in violation of your MHFA Note Purchase Agreement approved by MHFA on June 6, 1996 and the accompanying Procedural Manual referenced therein as follows: Section 4.1 (1) requires "A valid and enforceable mortgage, against the property is required in the following circumstances: a. When the pnncipal amount of the loan is in excess of $5,000.00." The only remedy ,of this situation is to have Columbia Heights Economic Development Authority pay the remainder of the loan off. Since the property was sold to a bonafide purchaser, the mortgage and assignment of mortgage cannot now be recorded against the property. Therefore, please forward to Compu-Link Loan Service, Inc., our loan servicer of this loan, within 14 days of the date of this letter, the loan pay-off and return of the loan origination fee as follows: 400 Sibley Street, Suite 300, St. Paul, Minnesota 55101 (651) 296-7608 Telecommunications Device for the Deaf (TDD) (651) 297-2361 Eoual Oooortunib/Housing and Equal Opportunity Employment Page 2 Account Number Pay-off as of 2/11/2000 1103055 $4,255.96 + $ 350.00 (loan origination fee) $4,605.96 $ .66 The check should be made payable to Compu2Link Loan Service, Inc. and sent to Ms Tamara Cook, Compu-Link Loan Service, Inc., 3900 Capital City Blvd., Lansing, MI. 48906. Upon receipt of your check, Compu-Link Loan Service, Inc. will forward the loan documents from the file to your Agency. If you have any questions, please call me at 651-296-8835. Sincerely, Hal H. Rossi Portfolio Management/Quality Control cc: Tamara Cook, Compu-Link Loan Service, Inc. Encls: Copies of Unrecorded Mortgage and Assignment Of Mortgage I Assignment of Mortgage Date: De¢-,.~.~xber 2.2, 1997 FOR. VALUABLE CONSIDERATION, the as Mo~gagor, to =he Columbia Eeights Economic Deve!o.~ent Authority '- az Mortgage, anti filed fo~ r~ ,19 . ~ ~ N~ ' (or ~ B~k of ~e. ), ~ ~ ~ of ~ (C~ ~~) Six Thousand~ rive E~ed ~d' ~en:v Sev~ ~d 16/100 i 6, s 2 7.: ~) ~~, ~ ~ ~n ~m STATE OF MINNESOTA COb/STY OF Anoka , 19'~ ?, and tl~:~r Assignor kas good r/ght to sell, assign ~ transfer the same. ASSIGNOR , on beimlf of the day of ,19 _The foregoing ~ was ac2cnowi~g~ before me r/tis by ~ar7 L. Peterson th~" PreSiden: a~ Walter R. Fehs~ Md Executive Director of Columbia Heichts Econ~!c Development Authority under the laws of Minnesota , aPublic body corporate and pol£n£c - ~herebvOran, o ..... f '"'u~ortgagee th, rec~ ....... ~ ....... ~0~~ Forever, ali the tract ~ or.~_~rgat~ .~l~ an~ Conu~y unto the ,aid nJ__'Q where,(i, hereby ackndwlede.-~' L : :; and ~tate of Minn,sot~ de~J~ ~3~;~ ~2~tynd being in the C;;~~~ec?s°rs and ~al~ns, I ' Lots 7 and 8 Block 56, ~ol~b~a lleighta Annex to Htnneapoll8/ ': i , ... Sub~ to Ease oE Rec. To Have and to Hold the Same, · Together with the heredltaments and apputtenan ~, "' the said mortgagee, its successors sad assigns, forever. An es that ~ ?.its, a _d_ndmstra~rs, executors and sssia.~- a,, ~hs s~d mortgagor ~ for thet~ .to belon&4ng ( tonows: That _cney , ...... °-." "." ~ covenant with the said"~^-*~i-~- .. · ': _', the sams are t.~ t ....... _. mwtuuy seized of said prendses and ye ..... lis&os, ISa euceetraore and assigns, aa ...... um all'incuml~rances, ha ._.___ good right to sell and convey the s.a.~.m.e; I~at that the mortgagee, it-, successors and nazi s aha ' ' . Warrant and Defend the t,~ ..... gn ,. 11 quietly enjoy and '~o ........ -. - ' ' '.. '" --. ,,,, ~u rna same agamst all lawful lo~--- -~-~ ["'~" ?,~ same; and that the mort a o f,', Prodded Nevertheless. That if the said mortgagor. . ~ theLr assign shah pay ~ said mort aee it ~ ~ hahs. adml~s~ators, ez~utora or aeeor~ng to ~n terms of ....... principal prominso .......... DoH~a. '~ "~ ~ ot oven ~a~ hatowiLh dun and payabin. coZumbia Heighten' ~ ~',ana payable to said mortgae~ at' ....... ~ ...... '~I'.'.~U ~ ~fom ~L~v ~s.and.~zaeaamenta now due or t~a~sl~ PqY the p~dnai ~ of~-~'~ ~h~by April 10, 2000 Kenneth R. Anderson, This letter is in response to the letter requesting immediate payment of the home improvement loan #I 103055. This should have been taken care of by the Waish Title company and the Minnesota Finance Agency. The balance of the loan payment was suppose to be taken immediately ~om the sale of the house before the money was divided according to the will of Mrs. Gafl~jen. Thomas I. Hara, attorney for Cathy Ga~jen and Bonnie Conom, knew this at the time of the sale and did nothing about it. I paid my 1/3 share of the loan back in January of'99. Mrs. Conom has decided not to pay her share since the loan is not in her name, but it was stated in the will of how it should be paid. I have repeatedly tried to get Mrs. Conom to pay and have been unsuccessful. I feel that it is your duty to collect the unpaid balance fi.om Mrs. Conom. Her address is: Randall and Bonita Conom 310 Olson Ct. Batavia, IL 60510 (630)761-6557 CITY OF COLUMBIA HEIGHTS 190 40TH AVENUE N.E., COLUMBIA HEIGHTS, MN 55421-3878 (61 2) 782-2800 'f'DO 782-2806 ,~$E NOTE: CITY ~IALL PHONE NUHBER$ HAVE CHANGED. ~IEN NUI4REE$ ARE: f~A[N NUHBER (?63)?06-3600; TDD (75~)'/'06-~691 F. COHOYDC DE~v-ELO?M~NT AUTDIORI~Z (][DA) March 30, 2000 EDA COMH[SS[ONERH- RoOer~ g. DonaLd C. HarLaine SzureK Gary ~. Paterson Ju[ienne ~yckoff Patricia Jindra John Hunter Sherney V. Gafkjen 105 Court Avenue South Sandstone, ~ 55072 Re: Loan Number 1103055 Dear Mr. Oaflcjen: I am writing to request your immectiate assistance to make payment for the mortgage originated through the Columbia Heights Economic Development Authority in December of 1997, Loan Number 1103055. I was sorry to learn recently of your wife passing away and as a result, that you had sold your house on October 31, 1998. As you know, my purpose in writing is to request payment for an unpaid balance on the above referenced loan in the following amount: Payoffas of 2/l 1/2000 is: Additional daily per diem at $ .66: Payoff as of 4/3/2000, Total Amount Due $4,255.96 $ 34.32 $4,290.28 A cashiers check in the amount of $4,290.28 should be made payable to the Columbia Heights Economic Development Authority. For every day past April 3, 2000, you must add $ .66 for interest charges to the amount listed. You may send the cashiers check to my attention at 590 40~ Avenue NE, Columbia Heights, MN 55421. If you have questions regarding this matter you may contact me at 763-706-3672. We will make payment directly to Compu-Link Loan Service, Inc. to close the loan upon receipt and deposit of your cashiers check. Again, because you have signed the mortgage and loan note it is your responsibility to make payment of the full amount due at the time of the sale of your home. I understand from co. rrespondence from the Minnesota Housing Finance Agency that you stated approximately 2/3 of the house sale proceeds were received by your wife's daughter, Bonnie Conom. Based upon this information, perhaps it Would be possible for you to be reimbursed by her for the remaimng unpaid mortgage amo.unt due to the Columbia Heights Economic Development Authority. If there is anyway [ can be of any assistance in this matter, be sure to contact me at your earliest convenience. If I do not receive payment from you by Friday, April 7, 2000, unfortunately [ will need to refer this matter to our attorney to pursue further action. I Shemey V. Gafkjen March 30, 2000 Page 2 of 2 Thank you in advance for your understanding and attention to this matter as soon as possible. Yom ~ '/~ ,- ?'7 // .._.<_ . ~'_~ ~; I~$rmeth R. Anderson Deputy Executive Director Enclosures: Loan Number 1103055 Randy and Bonnie Conom I'l:\Igasn~.oan #110305$.WPD LOAN NOTE_ FOR MHFA HOME IMPROV- I 0 .~ ~_-., . . ==o,,~ ~, GRAM~ I COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: August 16, 2000 AGENDA SECTION: Other Business ORIGINATING EXECUTIVE NO: C[ _ Q. _ 2_ DEPARTMENT: EDA DIRECTOR APPROVAL Proposed EDA Budget BY: Kenneth Anderson~ - BY: ITEM: Review of 2001 DATE: August 11, 2000 L ~" BACKGROUND/ANALYSIS: Staff has been preparing the Proposed 2001 Budget for the Columbia Heights Economic Development Authority and Comrriunity Development Department for review by the City Manager. We are tentatively proposing to have a copy available for review by the Columbia Heights Economic Development Authority Board of Commissioners at the Meeting of August 16, 2000. This Budget will be submitted for review and will also be subject to review by the City Manager. I am suggesting that the Budget be reviewed in its general format at this meeting and that a follow-up meeting be set later in August, 2000 for a thorough review and analysis of the Budget. RECOMMENDED MOTION: Move to set a special meeting of the Columbia Heights Economic Development Authority for review of the Proposed 2001 Budget and Proposed Levy for August 2000. Attachment: August Calendar EDA ACTION: h:\consent\Review Proposed 2001 Budget August 2000 Community Development Y S MT WT F S 2 3 4 $ 6 ? 8 9 I0 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 6 /3 20 [7 i7:00 PM City i Council Work i Session - CHCR !7:00 PM Traffic Commission - CHCC 14 !7:00 PM City Council Meeting - CHCC 21 7:00 PM City Council Work Session - CHCR 27 PM City Council Meeting - CHCC 1 ~.00 PM Police & Fire Civil Servi- ce Commission - Police Dept 9:30 AM Sister Cities Commit- tee - CHCC 7:00 PM Planning & Zoning Com- mission - CHCC 15 6:30 PM Econom- ic Dev Authority - PVV 0 PM Library Board - Library m 16 22 i23 6:30 PM Park & Recreation Co- mmission - JPM [7:00 PM Election Judge Training - CHCC 3 4 71 Pay Day 17 7:00 PM Charter Commission - JPM 7:00 PM Telecom- munications Commission - CHCR 24 18 25 Pay Day 5 19 26 S MTWT F S I 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 City Hall Council Chambers (CHCC) City Hall Conference Room (CHCR) Mur-zyn Hall (JPM) Parkview Villa (PW) COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) lvlee[ln ~ oE ~u~usi 1 o, /.uuu AGENDA SECTION: Other Business ORIGINATING DEPARTMENT: EXEC. DIRECTOR NO: q -- C.-~ Communit~ Development APPROVAL ITEM: Approve the Initial and Cooperation BY: Kenneth R. Anderson ~ BY: Agreements for Transition Block DATE: August 11, 2000 Redevelopment Project ISSUE STATEMENT: The EDA is requested to approve the Initial and Cooperation Agreements for the Transition Block Redevelopment Project to allow Real Estate Equities Development Company (Developer) to secure development funds fi.om the Minneapolis Public Housing Authority (MPHA) as part of the Metropolitan Housing Oppommities Program (MHOP). BACKGROUND: We have attached for EDA review and approval a copy of the Cooperation Agreement shown in draft form and dated March 3, 2000. The Initial Agreement is also included with the same drafted date. Also attached is a letter dated August 9, 2000 from the City and EDA's legal counsel, Kennedy & Graven, Chartered. You will note in the letter they are recommending that, "...if the City Council and EDA wish to approve the two agreements they do so 'contingent on the addition of this language or language substantially similar and acceptable to legal counsel for the City/EDA.'" Attached to the letter is proposed language to add to the Initial Agreement and the Cooperation Agreement. With the addition of these two ,a-mguage changes, the City and EDA will have the flexibility necessary to address any contingencies that _ .ay arise in the future. In other words, the City/EDA will have the opportunity to terminate the Agreements without further obligations to the City or the EDA if the project does not move forward. The Developers are requesting the City Council adopt the Cooperation Agreement and the Columbia Heights Economic Development Authority adopt both Agreements. These Agreements will be forwarded to the Minneapolis Public Housing Agency by August 21st, in order to be placed on the MPHA Board Agenda for August, 2000. The Agreements must be approved by all the affected parties and reviewed and approved by HUD prior to construction commencing on the project. The City Council will consider approval of the Cooperation Agreement on August 14, 2000. RECOMMENDATION: With the addition of the language suggested by the City/EDA legal counsel, staff recommends the City Council approve the Cooperation Agreement and that the EDA approve the Cooperation Agreement and the Initial Agreement. RECOMMENDED MOTION: Move to approve the Initial and Cooperation Agreements for the Transition Block Redevelopment Project contingent on the addition of the proposed language or language substantially similar and acceptable to legal counsel for the City/EDA; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Attachments: i~UNCIL ACTION: H: \Consent\EDA Initial-Cooperation Agreement (G! 2,1 ~.17-9.~0Lt T-144 P.~Z/64 August 9, 2000 Ken Anderson City of Columbia Heights 590 40a Avenue, NS Columbia Heights, MN 55421-3835 BY U.S. MAIL .M'qD FACSI2vI. IL£ - (763) 706-3'6'~1 Real £state Equitie~ Development Company 325 Cedar Street Suite 400 St. Paul, MN 55101 BY U.S. MAIL AND FACSIMFr E - (651) 227-9001 Dear Ken and Keith: Attached, arc pmpos~ additions m the MI-lOP agreemems. It is my recommendation thaL if the City Cot~ncil and EDA wish to approve the two agrecmenls they do so "confin§ent on the addition of this language or language substantially similar and acceptable to legal co~sel for the City/EDA.' With the addiaon of this lan§uage, I am comfortable that the city and the EDA will re~n the flexibility needed to address future contingenczes. Based on my conversations with Steve Bubul, it does not appeax [hat Jim Holmes has any objection to the addition of ~his sorl of language. I do recommend thai Real Estate Equities approach its MHOP contact to dtscuss r. he addition of this language to the existing documents, this will [ikely result in a faster refponsc time. Thc city and thc EDA can, however, approve the IV, HOP agreements with my added [angtlage before ~ Final answer is received fi'om MPHA, HUD, or anyone else who needs to approve the change from that dzrecr/on. I do want m remind both o£you tha! the cooperation agreement envisions the Hollman units as exempt fi.om taxarlon but subject to PILOT agreements. If ¥o~ have not air,dy done so, please check to confirm that this does not zmpair the necessary cash flow for the project. OJC-I~elO3~l CL2O5-11 ~ If you have any other questions or commenLs, do nol hesitate to let me know. Sincerely, Z ~'~"~"' .......... Damcl J Grce~wc~g D,IG: Encl Cc: Michael D. Zalk (BY FACSIMILE - (61~)..~07-7100) (w/encl) /PD-~fZ6Ol T-144 P.]4/O4 ADDITION TO INITIAL AGREEME~NT Notwir2u;u~.ding anything to thc conuary herein, ~ ~A ~ have no oblig~ou un~ · is Agr~mc~ ~ i~ ~ City of Col~bh ~ghu, ~o~ or bo~, have en~ i~o, wi~h ~ Ow~r, a ~ ~ent fi~g cou~t for ~va~ ~velopm~t. ~ pl~ned ~t ~velopmeut · g~nt. ~d ~y o~r a~m ~d ~~ by ~ ~A in i~ so~ ~fion ~d ~n~ ~s Agre~cut wi~ou[ ~ obiigalion on i~ pm immc~y u~ pro~ng no~ice F. xccpt as expressly set tbrth heroin, nor~ing in this Agreement shall be consu'ued to cr¢~ uny right m me Owner or any uther person not a pa~ ro this..Agreerneni. ADDITION TO COOPERATION AGilI~FMF. NT Nu~wi~slanding auymhing u) tim cuntraty hereto, neither he City nor the F_.DA shall have ~ny obligation under This Agrucmcnt until ~ F-DA, thc City, Owner, a mx increment l&nancing couu-ac~ for private development, a planned unit d~velopmeut agreement, md an5, other agreement &cmecl necesa;~ by the EDA and The CRy in their resider, ire ~ole discretion and pursuant [o ;crms salisfac:ory to u'~ EDA and the City in their respective sole discretion, and until ~uch nme me ED^, [he City, or both may [erminau: this Agreement wit. horn t'urthcr obligat/on on their par[ immcdialely upon providing nonce to MPHA. Except ~s expressly se[ forth heruin, no[king in ~s Agree. mere shaft be cunsirued To create any ngh: in r~ 0who- or any other person not a party to r. ius Agruemen~. / ~{C,- 184450v1 DKAFF: 03/03/00 COOPERATION AGREEMEiNT .This Agreement made and entered hto this _ day of ,2000, by and between the Minneapolis Public Housing Authority in and for the City of Minneapolis (the "MPHA"), the Columbia Heights Economic Development Authority (th~ "EDA') and the City of Columbia Heights, State of Minnesot~ (the "Municipality"). WITNESSETH: In consideration of the mutual covenints hereinafter set forth, the parties hereto agree as follows: I. Whenever used in this Agreement: The term '~MHOP .Units" means three (3) units of Iow-rent housing hereafter to be developed with the financial assistance of the United States of America acting through the Secretary of Housing and Urban Development (the "Government") and located within a twenty-two (22) unit townhome development (the "Development") to be owned by Columbia Heights Limited Partnership I ("Owner") and located in the City of Columbia Heights, Minnesota. ' ' The term "Taxing Body" or "Taxing Bodies" means the State of Minnesota and any and ali pol/ticaI subdivisions or taxing units thereof in which the MHOP Units are situated and which would have authority to assess or levy real or personal property taxes: or to certify such taxes to a taxing body or public officer, to be levied for its use and benefit with respect to the MHOP Units if they were not exempt from such taxation. (c) The term "Shelter Rent" means the total of all charges to all MHOP Unit tenants for dweIling rents and'nondwelling rents (excluding all other income of the IV[HOP Units) less the cost of ail dwelling and nondwelling utilities. The MPHA shall endeavor:. (a) to secure a contract with the Government for capital grants and annual contributions for the-iV[HOP Units; (c) to cause the development of the MHOP Units; and to assign tO the Metropolitan Council Housing and Redevelopment Authority its responsibilities under this and other agreements relating to the MHOP Units for purposes of ongoing administration thereof. D:~MNN I 2.qO 29~d30 CS~COOP,]~ 0tC (a) Co) (c) (d) (e) Pursuant to Minnesota Statutes, Section 469.040, the MI-tOP Units are exempt from 'all real and personal property taxes Ievie~i or imposed by any Taxing Body for so long as either (i) the lVff-IOP Units are owned by a public body or govemmentai agency and are used for low-rent housing purposes, (ii) the MIffOP Units are subject to the r~q'uirements of Section :5 of the. United States I-lousing Act .of 1937, (iii) the contract between the MPHA and the Owner in connection with the MI-lOP Units continues to obliga, tc the Owner to operate the MI-lOP Units as a low income housing project, or (~v) any obligatious issued in connection with the M2-IO? Units or any moneys due to the Government in connection with such MHO? Units remain unpaid, whichever period is the longest (the "EXemption Period"). During the Exemption Period, the Municipality, on behalf of the Taxing Bodies, agrees that'it will not levy or' iinpose any real or personal property taxes upon the MHOP Units or upon the lVlPHA with respect thereto. Because the IVIHOP Units consists of three (3) units located within and under common private ownership with I9 additional housing units which ¢ompris~ the Development, the property taxes and property tax exemption shall be determined as follows: (i) the tax capacity of the total Development shall be multiplied by a fraction, the numerator of which equals the total number of MF/OP Units and the denominator of which equals the total number of housing units in the Development and (ii) the product thereof shall be d~dueted from said tax cap~city. During the Exemption Period, the MPHA shall cause to be included agreements with the Owner the obll~tion of the Owner to make annuai payments in lieu of taxes ("PILOT") in payment for the public services and facilities furnished from time to time without other cost or charge for or with. respect to the MHOP Units. Each PILOT shall be made at the time when real property taxes on the MY-lOP Units would be paid if it was subject to taxation, and shall be in an amount equal to either (i) five percent (5%) of the Shelter Rent actually collected but in no event to exceed five percent (5%) of the Shelter Rent charged with respect to such MHOP Units during. the preceding calendar year, or (ii) the amount permitted to be paid by applicable State law in effect on the date such payment is made, whichever is lower. Pursuant to Minnesota Sta~tes, Section 469.040, subdivision 3, the County of ~shail distribute the PILOT among the Taxing Bodies in the proportion which the real property taxes which would have been paid to each Taxing Body for such year if the MHOP Units were not exempt from taxation; provided, however, that no payment for any year shall be made to any Taxing Body in excess of the amount of the real prope~ taxes which would have been paid to.such Taxing Body for such year if the lVlHOP Units were not exempt from taxation. In the event the PILOT is not paid, no lien against the MHOP Units or assets of the MPHA or EDA shall attach, nor shall any interest or penalties accrue or attach on account thereof. During the Exemption Period, the Municipality, or other appropriate Taxing Body, without cost or charge to the M~HA, EDA o~' tenants of the MHOP Units (other than PILOT) shall: Cb) Furnish or cause to be furnished to the MHOP Units public services and facilities of the same character and to the same ext~nt as are furnished from time to time without cost or charge to other dwellings and inhabitants. in the MUnicipality; Vacate such streets, roads, and alleys within the area of the MHop Units as may be necessary in thc development thereof; and convey without charge to the MPHA, EDA or Owner of the MI-IOP Units such interest as the Municipality, or other Taxing · Body may have in such vacated areas; and, in so far as it is Iawfully able to do so without cost or eXpense to the MPHA, EDA and the Owner of the NIl-tOP Units or to the Municipality or other Taxing, Body, cause to be removed frOm such vacated .areas, in so far as it may be necessary, all public or private utility lines and equipment; (c) In so far as the Municipality or o~er Taxing Body may lawfully do s°, (i) grant ~uch deviations from the building code of the Municipality or other Taxing Body as are reasonable and necessary to promote economy and efficiency in the development and administration of the MHOP Units, and at the same time safeguard health and safety, and (ii) make such changes in any zoning of the site and surrounding territory of the MI-tOP Units as are reasonable and necessary for the development and protection of the MHOP Units and th& surrounding territory; (d) (e) Accept grants of easements necessary for the development of the MHOP units; and Cooperate with the MPHA and EDA by such other lawful action or ways as the Municipality or other Taxing Body and the MPHA may find necessary in connection with the development and administration of the MHOP Units. In the initial development of the MHOP Units, the Municipality further a~ees, on behalf of all Taxing Bodies, that within a reasonable time after receipt of a Written request therefor from the MPHA or EDA: ' (a) that it will accept all interior streets, roads, alleys, and adjacent sidewalk~ hdthin the area of the Development, together with all storm and sanitary sewer mains in such dedicated are~, at~er the Owner of .the MHOP .Units, at its own expense, has · compl.eted the grading, improvement, paving, and installation thereof in accordance with specifications acceptable tO the.Municipality or other Taxing Body; . Cb) that it will accept necessary dedications of land for, and will grade, improve, pave,' and provide sidewalks for, all streets bounding the Developments as are necessary to provide adequate access thereto (in consideration whereof the Owner shall pay to the Municipality or other Taxing Body such amount as are or could be assessed against the Development); and e 10. that it will provide, or cause to be provided, water mains, and storm and sanitary sewer mains, leading to the Development and serving the bounding streets thereof(in consideration whereof the Owner of the MHOP Units shall pay to the Municipality or other Taxing Body such amount as are or could be assessed ag'~=t the Development). If by reason of the Municipalitys or other Taxing Body's failure or refusal to furnish or cause to be furnished any public services or facilities which it has agreed hereunder to furnish or cause to be furnished to the M]PHA, EDA, the Owner or tenants of the MHop Units, and the MPHA, the EDA or the Owner bf the MHOP. Unks incurs any expense to obtain such services or facilities, then the MPI-iA or EDA may cause to be deducted the amount of stich expense from any PILOT due or to become due to the Municipality or other Taxing Body in respe~ to the MHOp Units. '..... No Cooperation Agreement heretofore entered into between the Municipality and the MPI-tA or EDA shall be construed to apply to any MI-lOP Units covered by.this Agreement. No member of the governing body or any other public official of the Municipality or other Taxing Body who exercises any responsibilities or functions wi'th respect to the MI-lOP Units during his/her tenure or for one year thereafter shall have any interest, direct or indirect, in the MHOP Units or any property included or planned to be included in the MHOP Units, or any contracts in connection with the MHOP Units or property. If any such governing body member or such other public official cfa Taxing Body involuntarily acquires or had acquired prior to the beginning of his/her tenure any such interest, he/she shall immediately disclose such interest to the MPHA. During the Exemption Period this A~eement shall not be abrogated, changed, or modified without the consent of the Govemment. The privileges and obligations of the Municipality and other Taxing Bodies hereunder shall also remain in full for~e and effect with respect to the MHOP' Units so long as the beneficial title to the MHOP Units is held by the MPHA or by any other public body or governmental agency, including the Government, authorized by law to engage in the devel6pr~ent or administration of Iow-rent housing projects. If at any time the beneficial title to, or possession of, the MHOP Units is held by such other public body or governmental agency, including the Government, the provisions hereof shall inure to the benefit of and may be enforced by, such other public body or governmental agency, including the Govemment. --., The Government, the Municipality and the EDA hereby consent to the future assignment of the MPHA's "interest in .this Agreement to the Metropolitan Council Housing and Redevelopment Authority. D:~,M~i' 12 ~f129t, DOCS',CC~'P.DOC IN WITNESS WHEREOF the Municipality, the MPHA and the EDA have respectively signed thi-~ Agreement and caused their seals to be affixed and attested as of the day and year tn'st above written. MINNE~OLIS PUBLIC HOUSING AUTHORITY IN AND FOR ~ CITY OF NESNNEAPOLIS By-. Comell L. Moore Its Chairman And by. Cora McCorvey It~ Exec.ut/ve Director CITY OF.COLUiVIBL~ I:~,IGHTS, MINNESOTA By. And by. It~ COLUS~IA ]:[F~IGHTS ECONOi~IC DEVELOPMENT AUTHORITY By. And by Its Dfl~MIqN 12 ~0 2 9~DOC~COO P.DOC COOP.~R,ATION AGKEF-MEqT 03/03/00 THIS AGREEMENT,. made. th/s day o~'_ , 2000 by and between the .Minneapolis Public Housing Authority in-~d for the City of Minneapolis, a public body corporate and politic (the "MPHA") and the Columbia Heights Econom/e Development Authority, a public body corporate and politic (the "EDA~) is entered hato pursuant to M~nnesota Statutes, § 471.59 and §.469.012, Subds. 1(11) and 3. WHEREAS, the MPHA has entered,into an Annual Contributions Contract ("M?HA ACC") with the United States Department of Housing-and Urban Development ("HUD") for fi. mding the capital and'operating costs of Iow rent pubi/e housing um~ and projects throughout the Minneapolis-St. Paul metropolitan area; and ' WH~, the MPHA has established the Metropolitan Housing Opportunities Program ("M2HOP") pursuant to which it will cooperate with suburban count/es and municipalities in the construction and operation of qualified housing units (the "M~OP Units"); and WHEREAS, Columbia Heights Limited Partnership I, a Minnesota limited partnership (the "Owner") has applied to the MPHA to locate three (3) M~OP Units w/thin its development of a 22-unit multi/'amily housing project to be known as Columbia Heights Limited Partnership I Development (the "Development") to be located in the City of Columbia Heights; and WHEREAS, the MPHA and the City have agreed to cooperate/n the location of three (3) M3IOP Units in the Development; and WI-~REAS, the purpose of this Agreement is to define the relationship of the MPHA and EDA w/th respect to the planning, construction, ownership and operation of the/vl3tOP Units. NOW', THEREFORE, it i's agreed by the part/es hereto 'as follows: L PROPOSAL. A. The M2PHA wilI prepare and submit to HUD a proposal for development funds in the approximate amount of'not to exceed $315,900 (excluding administration fimds) and ongoing Operating subsidy under the MPHA ACC for the construction and operation of 2 replacement un/ts ("MHOP Replacement Units") and 1 incentive units ("M2HOP Incentive Units"). B. Upon completion of MHOP Units, the M?HA may, w/thout further action by the EDA, assign all documents related thereto to the Metropolitan Council Housing and Redevelopment Authority ("Metro HRA") for ongoing administration of the operating subsidy and grievance procedures as well as management of the waiting lists (the "Assignment and Reformulation"). In ~ event, MHOP Units shall be removed ~'om the MPHA ACC and added to the ACC of`the Metro HRA (the "Metro ACC").'. Subsequent to the Assignment and Ref`ormuhtion: I. Ail of' the duties of' the M~HA descr/bed herein that are yet to be performed shall be performed by the Metro HRA; 2. Ail of the rights of the MPHA descHbe(~ herein shah be r/ghts of the Metro 3. The Operating Subsidy descr/bed in Sect/on V~ w/il be determined or re- determined in accordance with the Metro ACC and based upon the Metro HRA Fiscal Year. · .... C. The MPHA shall: Crather and assemble al/ requ/red Development informa/on, includ/ng financial pro formas and design and construction documents. Prepare required documentation, including /n/tiM operating budgets, in conform/t7 with federal regulations and HUD requ/rements. Adm/nister the processing of ~he Proposal 'and obtaining the/r approval by HUD. o Provide liaison w/th the Metropolitan Council and the Minr~esota Housing Finance Agency ("/v[HFA") with respect to all other ~unding effect[ng the Developments. 5. Monitor the application of federal Davis-Bacon wage requirements that shall apply to the Developments, prov/ded that the Housing Development Agreement between the MPHA and the Owner shall requ/re' the Owner and construction 'contractors to provide the MI)HA such information as it may reasonably require in order to meet its obligation hereunder DEVELOPMENT. The M~HA shall enter into a Housing Development Agreement ' with the Owner wh/ch will: Establish the design and'construction specifications of the three (3) MHOP Units as one (I) two-bedroom, one (I) three-bedroom unit and one (1) four-bedroom unit; Confirm the amenities to be provided within and around the Development; Provide that the level of NfHOP fisnding for the Development w/il equal certified construction costs (pro rata based on bedroom size); D:~,MN~q 12~029~OC~NFFIAL.DOC Provide that the operating subsidy reserve fund be drawn upon in the event 'operating subsidies paid by the MPHA are inadequate to pay the d/fference between M~OP Unit income and expenses, as defined below;, Provide for the draw-down of public housing development funds on a pro rata basis with other Development funding sources; Establish a system by which the MHOP units within the Deve. Iopment will not be ' physically identified, but rather will. "float" throughout the Development depending upon vacancies and availability; Identify the system for construction inspections, cost certifications and development audits; Require execution by the Owner of the Regu/atory and Operating Agreement and a Declaration of Restr/ctive Covenants creating a covenant running w/th the land obligating the Owner and all successors in interest to maintain and operate the M~HOP Units in compliance v~th a/I applicable requirements of Section $ of the United States Housing Act of I937 and the ACC; and MANAGEh4~NT. The Regulatory and OPerating Agreement shall provide that the Owner or its agent (the "Managing Agent") sha/I manage ail the units at the Development, inelud/ng the M~OP Units and: B. sba/1 comply with afl federal law, regu/ations and policies and the MPHA ACC. shalI provide the MPHA, the EDA and/or HUD with access to a// books and records maintained by the Managing Agent with respect to the MHOP Un/ts. shall be ~ubject to termination and replacement as to the entire Development if it is determined by the ~HA, subject to appropriate judicial review by any court of competent jur/sd!ction, that the Managing Agent or any successor has materia/ly violated, breached, or fa//ed to comply with any provision of federai law, regulation, policy, or the MPHA ACC. Do sha~I receive 'from the MPHA the names of persons and families who meet the income and waiting list criteria for admission into the MHOP Un/ts and shal/ carry Out such administrative functions as (but not l~rn~ted to) applicant interviews and screening, veri~cafions, detemaiuation of suitability for admission, unit assignment, execution of leases, terminations and evictions. WAITING L/ST M. ANAGEME~NT. The MPHA shall maintain the waiting lists for those'applying for housing in the MHOP Un/ts, using applicable federal, MHOP and loca/priorities. D:gKNNI 2~.02~DOC~'~qrrlAL. D(~C 3 ~qrTIAL AGREF..MENT Ve Applicants for the two (2) MHOP Replacement Units will be selected from waiting lists based upon the following priorities: .1. First, to families displaced by the demolition of Miu-eapolis public housing units pursuant to th~_t certain Consent Decree entered ia settlement of Hollraan et ~1. vs. Cis~eros et al., U.S.D.C. '(2v~,n Dist., 4th Div.) Civil Case No. 4-92-712. Second, to families on the MPHA waiting and transfer lists who live ia minority or poverty concentrated areas in the metropolitan area. Third, to families on the MPHA waiting list. This will include all fam~es wishing to participate/a. MHOP, including both Mirmeapolis waiting Est families and applicants from the City. The MPHA will automatically place all applicants from the local waiting list on its list, thus making both NFnueapolis and City of Columbia Heights residents equally eligible for this priority. The one (I) MPHA Incentive Units will be filled pursuant to local waiting lists that will also be administered by the MPHA. The MPHA will have full and complete control over the management of the waiting list, and the M~n~ging Agent will have complete control over the selection o£ residents, so long as the MHOP priorities and all federal and state Iaws are followed. The MPHA will promptly and continuously place all Minneapolis applicants for placement on the MHOP waiting list. If the referral system results in no eligible and suitabIe tenant with Consent Decree priorities, the unit can be filled, with other applicants on the waiting list._. The MPHA shall provide HUD a certification, ia the form attached hereto-'~-'~bit-A~ certi.C-y~g that its waiting Est procedures will conform with applicable law and regulations. · POST CONSTRUCTION DUTIES. As a part of the HUD close-out requirements with respect to the MHOP Units, the MPHA shall: Ce De Designate the End of the Initial Operating Period CEIOP") and shall coordinate the inclusion of the MHOP Units in the MPHA Annual Operating Budget. Within 12 montes of EIOP, gather information and provide HUD with the Actual Devel0pmen..t.Cost Certificate ('ADCC,,). Cause the preparation of an audit by an independent public accountant as a part of its submission of the ADCC. Monitor the Managing Agent's procedures and results in screening applicants provided fi.om the MPHA wait/ng lists and report the results thereof to HUD as may be requested or required. D:~4~'! 2.~029~DOC.S'~q'~ 4 D./r'rLLL AGR.E~ TAX CERTIFICATIONS..The MPHA shall provide in its agreements w/th the Owner that the Owner, or its Managing Agent, shall annually prepare and present to the City a certification to the appropriate assessing officials of the number of MiHOP units located withl, the Development. The City shall execute and forward such certification pursuant to Ivn,~esota Stalutes, Sect/on 469.040, subdivision 4. OPERATING SUBSIDY. Under the MPHA ACC, HUD contracts to provide an operal/ng subsidy to the MPHA 'for ail' un/ts subject to the MPHA'ACC, wkich w/ii include these MHOP Un/ts. It is therefore.necessary to establish a methodology by' which the N[PHA will 'pay operating subsidy to the Owner, of the MI-IOP Un/ts. That system, to be described more fully in a Regulatory and Operating Agreement between the MPHA and the Owner, will be generally,as follows: A. As used in this Section VII, the fol/owinl ~erm~ shall mean/ngs: ... . have the'foLlowing "Allowed Project Expenses" means ail necessary and reasonable operating expenses of the Development for any period, including: (a) ali ordinary and necessary expenses of operations of the Development Shown as line items on Form HUD-92547-A (Budget Worksheet), exclusive of real estate taxes and debt service requirements of any lender and exclusive of utiI/ty expenses which are the direct responsibility of' tenants; provided, howeVer, that if the Owner shall be required to borrow funds for repairs, replacements or improvements not fixnded fi.om a Development reserve fi.md for replacements, debt service requirements for any st/ch borrowing approved by the M~HA (which approval shall not unreasonably be w/thheld) shall be included in Allowed Project Expenses; prov/ded, further, that M~0P Unit Expenses (as herehaafter defined) shall be reduced by any amounts contr/buted by the MPHA or EDA, on a grant basis, for mpa/rs,'repIacements - or improvements; (b) . management fees payable pursuant to the Property Management '" Agreement; :-. (c) legal expenses associated w/th the operat/on of the Development as well as accoun g and audit 'expenses, /nclud/ng return preparation expenses, permitted to be charged as project expenses pursuant to HUD Handbook 4370.2 REV-I, Financial Operations and Accounting Procedures for Insured Muir:family Projects, or any successor thereto; and D:hMl~q 17~029t. DOC~,,[~OC 5 LN*ITIA L AGKEF-ML~T (d) reserves for replacements and for any other purposes, ~ required by any lender and approved by the MPI-IA. "MHOP Percentage" shall mean the higher of (i) the number of 1Vff-IOP Units, divided by the total number of units at the Development, or (ii) the net rentable square feet of the M~OP Units (assuming one (1) two- bedroom unit, one (I) three-bedroom trait and one (I) four-bedroom unit), divided by the net rentable square feet of ail the units at the Development. "MHOP Unit Expenses" shail.mean (A) A/lowed Project Expenses, · multiplied by the IVIHOP Percentage, plus (B) the payment i~ lieu of real estate taxes made in respect of the MX-lOP Units, if any, plus (C) amounts paid to M~OP Unit occupants as. utility reimbursement (i.e., "negative rent"); provided, however, that if any line item expense shall be included ha Estimated MHOP Unit Expenses on the basis of a percentage other than the MHOP Percentage pursuant to the second sentence of Section VZI.B.(I) hereof, such expense shall be included in M~OP Unit Expenses on the basis of the same percentage; . "MHOP Unit Income" shall mean ali income received in respect of MHOP Units, including tenant rents ("Tenant Rent" as de~med ha 24 CFR ~ 913.102) and any other sources of income received in respect of MiHOP Units, including ali types of revenue shown as Line items on Form HUD 92547-A, but exclusive of.operating subsidy. "Estimated Allowed Project Expenses," "Estimated bIZIOP Unit Expenses," and "Estimated MHOP Unit Income" shall mean the estimated amounts of such items for any period determ~r~ed in accordance with subsection (B) hereof. Noi later than 90 days prior to the anticipated Date of Full Availability ("DOFA") for occupancy of any unit of the Development, and not later than 150 days before the first day of any subsequent M~PHA Fi~cat Year, the oWner shall prepare and submit to the MPHA a proposed ope~get for the following MPHA Fiscal Year (or, ha the case of' the year in which DOFA occurs, the remainder thereof) ("Operating Budget',). The Operating Budget shall project Estimated Allowed Project Expenses, Estimated MHOP Unit Expenses, and Estimated MHOP Unit Income for the subject period, subject to the following conditions: 1. Estimated Al/owed PrOject Expenses shall be as reasoaably estimated by the Owner. The MPHA may comment upon and propose changes to the Estimated Allowed Project Expenses as provided by the OWner and set forth ha the Operating Budget submitted to the MPHA, but the OWner shall not be required to reduce any estimated expense below the Development-wide amount for such expenditure reasonably anticipated by the OWner for the period. However, the portion of any line item within the D:'~INNI 2.~029~DOCS~ff'IZ4L~OC 6 INITIAL AG~ Estimated Allowed Project Expenses included in Estimated MHOP rJm, Expenses shall be altered fi'om the MHOP Percentage if the MPHA demonstrates satisfactorily that_ allocation of such item to the MHOP Un/its on the basis of the MHOP Percentage is inappropriate (e.g., marketing and advert/sing costs, if such relate solely or preponderantly to the non MI-IOP un/ts). · Co Until the completion of initial rent-up of the MHOP Un/ts,' Estimated MI-IOP Unit Income sh,H be determined on the basis of assumed ten,/nt rent collections for each unit.size eqfia/ to the average tenant rent eollections for ail units of comparable size owned and administered by the MPHA in the most recent annual or scm/annual period for which such statistics are available,, at the time of the Owner's subm~-qsion of the Operating Budget for such period to the MPHA For each subsequent MPHA Fiscal Year, Estimated MI-IOP unit Income shall be determined on the basis of the, ag~egate tenant rents at:marly collected for all MI-tOP Un/ts during the first six months of the preceding MPHA Fiscal Year. Notwithstanding the foregoing, with respect to any MPHA Fiscal Year, the MPHA may agree to project Estimated MHOP Un/t Income at a level d/fferent from that which would otherwise be established pursuant to the preceding sentence, taking into account (a) the reasonably anticipated level of incomes of tenants anticipated to be admitted to the MHOP Units during such period, based on anticipated turnover and the admissions policies, and (b)'reasonably anticipated increases in income levels of ex/sting tenants based on tenant participation in employment training and other supportive services programs. During each MI~HA Fiscal Year Commencing w/th ~he first M~HA Fisca/Year after DOFA, and subject to any Iimltations arising from application of Section 20 (e) of the Act and operation of the Development Operating Subsidy Cap, the MPHA sha/l pay to the'Owner an amount equal to (I) Estimated lVlHOP Unit Expenses for such period, leis (2) Est/mated MHOP Unit Income for the period (the "Operating Subsidy Requirement"). The MPHA shall pay to the Owner, on the first day of each month of an MPHA F/sca/ Year, one-tweLeda (I/12) of the Operating Subsidy Requirement for such MPHA Fiscal Year;, provided, however, that the Owner and the MPHA may agree, upon determination of the Operating Budget and Operating Subsidy Requirement for any MPHA Fiscal Year, to provide for unequal monthly payments for such year. ' REGULATORY AND OPERATING AGREEMENT RESPONSIBILITY. The Regulatory and Operating Agreement provides for~ongoing joint monitoring and dec/sion-making by the MPHA and HUD. wail be allowed to ~ow uuuugh interest earnings and certain operating subsidy D:~fNN 12g029~DOC~INrrlAL.DOC 7 INITIAL AGR~E3&ENT reimbursements, if any. Shortfalls, either because of the recalculation of three years' estimated operating subsidy or because of necessary Withdrawal from the reserve may be made up by the MPHA, but it is not obligated to do so. AD~STRATIVE COSTS. The MPHA and EDA -~h~H eaeh bear the costs associated with their' respective obligations and responsibilities described herein or otherwise related to the constmc~on and Ol:~-ration of the MHOP Units. TERMINATION AND/OR ..ASSIG~I~Fr. In the event the EDA wishes to terminate this Agreement it may do so as follows: I. Ninety (90) days' notice.of/ts intention to terminate shall be served upon the MPHA by the EDA in writing; 2. The EDA shall assume and undertake al/ of the obligations and responsibilities of the MPH. A as set forth in ail written agreements relating to Development between the MPHA, on the one hand, and the Owner, the MHFA, HUD or any.other contracting party, on the other, 3. The EDA shall become the contracting party with HUD with respect to the annual contributions contract governing the construction and operation of the Development.; HUD shall consent in writing to such iermh~tion; and The 1V[PHA shall be released from all future liability arising from and responsibility for the ongoing construction or operation of the Development. ' Bo All agreements ex.uteri by the MPHA with respect to the Development shall' provide for the eventualities described in this paragraph XI. MISCELLANEOUS. No member, official, or emploYee'of the MPHA or EDA shaH have any personal interest, direct or indirect, in this Agreement, nor shall any such member, official, or employee participate in any decision relating to this Agreement which affects his or. :her personal interests or the interests of any corporation, partnership, or association in which he or she is, directly or indirectly, interested. No member, official, or employee of the MPHA or EDA shall be personally liable to a party to th/s Agreement, or any successor in interest, in the event of any dd'auk or breach by any party or for aay amount wkich may become due a party or successor or on any obligations under the terms of this Agreement. D:%'vfl,~N[ 2~0291DOC$~'I//AL.DOC 8 [NITTAL AGRF. F. MENT Eo The parties hereto,/'or' themselves and their successors and assi~.~, agree tlaa, during the term of' th/s Agreement they will comply w/th all a/~t!ve act/on and non=d/sclqm~r)~on requfi:ements o/` applicable/`ederal, state or IocaI laws or Any rifles of the sever-ad parts, Articles, and Sect/ohs of this Agreement are inserted for conven/ence of reference only and shall be cI[~egarded/n constm/ng or/nterpreting any o/'its provisions. Except as otherwise expressly provided, in. th/s A/~reement, a notice, demand, or other communication under the Agreement by either pazty to the other shall be sufficiently given or delivered/.f it is dispatched by registered or certified mail, postage prepa/d' return receipt requested, or delivered personally; and I. in the case of the MPHA, is addressed to or delivered personally to the MPHA at I001~ North Washington Avenue, Min~eapoL/s, ~ 55401, Attention: Executive Director;, and ' e in the case of the ED.A, is addressed to or delivered ersonall to ~h P y the EDA at 590 40 Avenue Northeast, Columbia Heights, MN 55421-$g35, or at such other address with respect to either such party as that party may, from time to t/me, designate in wr/ring and /brward to the other as provided in tE/s Section. This Agreement may be executed in any number of counterparts, each of wE/ch shall com"c/tute one and the same instrument D:~MNN I 2~029~DOC~NITIAL.DOC 9 5/ITTA[. AGKE~MENT IN WITNESS WHEREOF, the MPHA has caused this Agreement to be duly executed ia its name and behalf and its seal to be hereunto duty a/~axed and the EDA has caused th.is Agreement to be duly executed ia its name a~ud behaLf on or as of the date first above written. lVl]NNEAPOLIS PUBLIC HOUSING ALrI'HORITY IN AND FOR ~ CITY OF MINNEAPOLIS Comell L. Moore Its Chairman ' By, Cora McCorvey Its Executive Director COLUMBIA KEIGttTS ECONOlVIIC DEVELOPlVIENT AI. Fr~ORITY By. Its By. Its D:~]q?q ! 2 ~.0 2~)~.D O CS'~NITiAL.DOC ~ AGKE~%fl~NT EX~CUTION' COPY EXHIBIT A Waiting List Certification We hereby cer~-y that the waiting List of' ~e MPHA/'or the Metropolitan Housing Oppommity Program at the Columbia Heights Limited Partaership I Development ia Columbia Heights, Minnesota will eon.form to the Co,seat Decree ia settlement of Hollmaa et al. v. Cimeros et al., .U.$.D.C. (Mitre Dist., 4th Div.) Civil No. 4-92-712 and 24 CFR Part 5, Part 8, 913, 960 and 966 and applicable Fair Housiag a~d Equal O?portunity laws and regulation. Dated: MINNEAPOLIS PUBLIC HOUSLArG AUTHORITY IN AND FOR THE CITY OF MINNE~OLI$ By Cora McCorvey Its Executive Director D:'~rlq [2~02~DOC~qlTIAL.DOC A- ! LN1TL-LL AGR_~M~NT