Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
EDA AGN 09-19-00
CITY OF COLUMBIA HEIGHTS 590 40TH AVENUE N.£., COLUMBIA HEIGHTS, MN 55421-3878 (612) 782-2800 TOD 782-2806 ECONOMIC DEVELOPMENT AUTHORITY September 19, 2000 EDA COMMISSIONERS Robert W. Ruettimann Patricia Jindra Donald G. Jolly Marlaine Szurek Gary L. Peterson Ju[Jenne Wyckoff John Hunter 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 Tuesday, September 19, 2000, in the Parkview Villa Community Room B, 965 40th Avenue N.E., Columbia Heights, Minnesota. The EDA does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, its[ services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities to[ participate in all EDA services, programs, and activities. Auxiliary aids for handicapped persons are available upon request[ when the request is made at least 96 hours in advance. Please call the EDA Secretary at 706-3670 to make arrangements] (TDD/706-3676 for deaf or heating impaired only). ] 2. 3. 4. CALL TO ORDER/ROLL 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 Augustl6, 2000 and Special Meeting of August 28, 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 2000-12, 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. REPORT OF THE MANAGEMENT COMPANY. A. Anita Kottsick, Parkview Villa Public Housing Administrator, Karl Wilson, Housing Manager. CITIZEN FORUM TO ADDRESS EDA ON MATTERS NOT ON AGENDA. (At this time, citizens have an opportunity 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.) RECOGNITION, PROCLAMATIONS, PRESENTATIONS, GUESTS - None. PUBLIC HEARINGS - None. THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES EQUAL OPPORtUNitY EMPLOYER ITEMS FOR CONSIDERATION. A. Other Resolutions. 1) Performance Funding Systems Operating Subsidy. MOTION: Move to approve the EDA Resolution 2000-13, being a resolution of the Columbia Heights Economic Development Authority confirming approval of the Calculation of Performance Funding System Operating Subsidy for 2000; and furthermore, to direct the Executive Director to forward same to the U.S. Depart- ment and Urban Development. Bid Considerations. 1) Proximity Readers and Security Camera System for Parkview Villa. MOTION: Move to award the proposal to install Security System Cameras and Proximity Readers to Trans-Alarm, Inc. based upon their proposal of September 19th, 2000 in the total amount of $ ; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Co Other Business. 1) Approval of Preliminary Agreement. MOTION: Move to approve the Preliminary Development Agreement by and among the City of Columbia Heights and Columbia Heights Economic Develop- ment Authority and Columbia Heights Transition Block, LLC; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. 10. 2) Work for Housing TIF Study (Transition Block) MOTION: Move to authorize expenditures to Springsted, Inc. up to $9,750 for the Transition Block Redevelopment Block Housing TIF Study and up to $5,000 for preparation of the TIF Plan for TIF District number 9 with payment fi.om the EDA Fund 204; and furthermore, to authorize the President and Executive Director to process payments as necessary. 3) Section 8 Report. MOTION: Move to receive the Section 8 report as presented in writing. 4) MI-IFA Loan Status Report. ADMINISTRATIVE REPORTS. A. Report of the Deputy Executive Director. I) MCPP Update 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, October 17, 2000 in Community Room B at Parkvicw Villa. 12. ADJOURNMENT. Walter R. Fehst, Executive Director H:\edaagenda2000\9-19-2000 The mission of the Columbia Heights Economic Development Authority is to provide financial and technical assistance and resources to residential, commercial, and industrial interests to promote health, safety, welfare, economic development and redevel opmen t. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY(EDA) REGULAR MEETING MINUTES OF AUGUST 16, 2000 CALL TO ORDER- The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimann at 6:32 p.m., Wednesday, August 16, 2000, in the Park-view Villa Community Room B, 965 404 Avenue NE, Columbia Heights, Minnesota. ROLL CALL Commission Members Present: Commission Members Absent: Staff Present: PLEDGE OF ALLEGIANCE. Robert Ruettimarm, Patricia Jindra, Marlaine Szurek, Don Jolly and John Hunter Julierme Wyckoff and Gary L. Peterson Ken Anderson, Deputy Executive Director Randy Schumacher, Community Development Assistant Anita Kottsick, Parkview Villa Public Housing Administrator Kari Wilson, Parkview Villa Public Housing Administrator Walt Fehst, Executive Director Cher Bakken, Secretary ADDITIONS/DELETIONS TO MEETING AGENDA. 9-C-4 and 9-C-5 CONSENT AGENDA. A. 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 by Pat Jindra, seconded by John Hunter, to approve Resolution 2000-10, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the f'mancial statement for July, 2000 and approving payment of bills for the month of July, 2000 with the amendment changing the month from August, 2000 to July, 2000 as printed in the agenda. All Ayes. MOTION CARRIED. 3) Approve Payment/t3 &/t4 to Millar Elevator Service Company Mr. Anderson explained that this was a document for approval of Application 3 and 4 for a total of $90,105. The City keeps 10% of each pay application for retainage until the project has been completed, inspected and approved. Staff is recommending payment of Application//3 and//4. In discussion, John Hunter stated his understanding of the retainer policy for the Millar Agreement was that it would be 10% ot the total contract for one year after completion for one year, not 10% of each application fee that the City retains. Mr. Anderson will check into this percentage and report back to the EDA Commission. MOTION by Marlaine Szurek, seconded by John Hunter, to accept the work for Pay Applications/t3 and g4 and to authorize payment of $90,105 to Millar Elevator Service Company of Cleveland, Ohio. All Ayes. MOTION CARRIED. 4) Section 8 Report. The Section 8 Certificates will be changed to Vouchers by October 1, 2000. The number of tenants on the program has changed dramatically due to the current staff clarifying which tenants are actually on the Columbia Heights Section 8 program. The report states that there are currently 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. When they where actually inactive. These participants should have not been in the utilization report. We are still targeting the September 1, 2000 date for the transfer to Metropolitan Council. MOTION by Don Jolly, seconded by Marlaine Szurek, to receive the Section 8 report as written. All Ayes. MOTION CARRIED. REPORT OF THE MANAGEMENT COMPANY. A. Anita Kottsick, Parkview Villa Public Housing Administrator. The Elevator Modernization project is moving along ahead of schedule according to one of the servicemen that she had recently talked to. The EDA had requested that an inspection of the circuit panels be done and added to the Move Out Unit Preparation Checklist. She reported that this has been added and Bill Gault has already started checking them as Economic Development Authority Minutes August 16, 2000 Page 2 of 5 people have moved. Anita wanted to correct the date that was printed in her occupancy report for when she will be meeting with Marion Booth. It will be on the 17e of August. She also wanted to introduce Karl Wilson as the Housing Administrator for Parkview Villa to be working in the morning hours. Anita will be spending her aftemoous at the Parkview Villa office. Karl will be introduced to the residents at their meeting on August 14th. CITIZEN FORUM. Ruth Borris, Unit 123, expressed her concern about the garbage smell behind Parkview Villa. She has contacted the City Hall and the Anoka dispatcher in this regard. She was also concerned about the handicapped residents being on the seventh or eighth floor. Ruth suggested that they should not put these residents with medical problems up that high in the building because they could never get out if there was a fire and the elevators were inoperative. Ruth Hillested, Unit 310, asked for a report on the garage security. Mk. Anderson reported that we need to get a floor plan for each unit to provide this information to the company that will be quoting the job. Ken has not been able to find a copy of the plan for the south building. Pres. Ruettimaun suggested that Ken contact HI_rD or the County offices to obtain the plans. Ruettimann asked that we get a report back to him by next week so that he can report back to the resident the status of the security system that was talked about last month. In the meantime, some common ideas were shared about the tenants safety exiting and entering the building. Opal Baker asked what store was going in next to Stroncek's Eagle Drug Store on Central Avenue. Mr. Anderson stated that a driving center is going in on one side and the other half has not been determined yet. Ms. Baker stated that the construction going on is just adding to the noise. Mr. Hunter received a call from a citizen of the community wondering if a dirty book store was going into that unit. He has checked into it and it is truly a RUMOR! 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 A Minnesota Housing Finance Agency Minnesota Fix-Up Fund loan that was originated by the EDA on December 12, 1997, to Sheruey and Catherine Gafkjen in the amount of $6,527.16. The property was sold in October of 1998 and the loan went into default. Shemey payed 1/3 of the remaining balance at closing and stated that Catherine Gafkjen's daughter received 2/3 of the property sale proceeds, so the remaining balance of the loan due should be received from her. Ken Anderson consulted an attorney for advice. The City Attorney suggested that the EDA pay Compu-Link Loan Service, Inc., for the unpaid amount of $4,377.80 as of 8-15-2000, plus $ .66 daily per diem and $350.00 to MHFA. In discussion, Mr. Ruettimann would like a copy of every mortgage that is not filed with Anoka County by the next EDA meeting in September, 2000. He also requested that Mr. Anderson write to the County to receive a report of any mortgages that are not filed currently. Ken asked if we could provide a list to the Commissioners of just the mortgages that we are having trouble with? Pres. Ruettimann stated that he would like to have all of the 26 or 27 mortgages open with the City manually checked to get a report of the status of all of them. Pres. Ruettimann requested that we table this motion until next month when a report can be provided to the Commissioners of the current status of all 26 or 27 open mortgages with the City of Columbia Heights. 2) Budget Meeting Mr. Anderson proposed that a special meeting be scheduled to discuss the 2001 Budget. Currently the Budget is not ready for review. He assured the EDA Commission that the Budget will be done sometime in the next week. Pres. Rueittrnann suggested that the meeting be scheduled September 15, 2000, that only the Final Budget is discussed, nothing else that night so that the Budget is ready for adoption by the September 15~h City Council meeting. Walt Fehst suggested that we schedule the budget to be presented to the EDA the first week in September. No date was scheduled at this time. Walt Fehst and Ken Anderson will schedule the EDA's reviewal meeting and let the Commissioners know of the date later. Economic Development Authority Minutes August 16, 2000 Page 3 of 5 3) Approve the Initial and Cooperation Agreement for the Transition Block Redevelopment Project. Mr. Anderson explained that this is a request from Real Estate Equities for the approval by the EDA and the City. The Agreements are related to the Transition Block Redevelopment project which includes the properties of NEI College of Technology at 825 41" Avenue NE., the EDA's property at 4150 Central Avenue NE., Citywide Locksmithing at 4156 Central Avenue NE., and the house at 4157 Jackson Street. These two Agreements need to be executed by the EDA and the Cooperation Agreement only needs to be executed by the City. The City Council took action on the Cooperation Agreement at its meeting on August 14th and approved it subject to additional language being included. The Initial and Cooperation Agreements basically explain how the funds will be distributed between the Minneapolis Public Housing Authority, Metropolitan Council HRA, City of Columbia Heights, and the Columbia Heights EDA. Legal counsel for the City/EDA has reviewed the Agreements and has suggested that the EDA approve the two Agreements with the contingency or addition of the proposed language or language substantially similar and acceptable to legal counsel for the City and EDA. In discussion, it was noted the Council set a Public Hearing for September 25, 2000 to review the proposed TIF Plan and establishment ofa TIF District. Staffhas not reviewed the Tax Increment Financing Plan. August 25, 2000 is the date that the Tax Increment Financing Plan is to be presented to the School District and Anoka County in a draft form according to the financial advisors outline for the proposed time schedule. President Ruettimann was concerned that the EDA signs the Agreements and the project would go through with some changes by City Council that the EDA wouldn't necessarily agree on and the contract would go through. Mr. Anderson stated that the EDA and City Council review and approve the necessary TIF Agreements. If the Planning and Zoning Commission does not approve the PUD Agreement, then the Agreement will not go through. Mr. Fehst stated that if the City and EDA approve these Agreements, the project may go through. If the TIF and/or other Agreements are not approved, nothing will be built. MOTION by Marlaine Szurek, seconded by John Hunter, 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. All Ayes. MOTION CARRIED. 4) Community Development Block Grant Housing Rehabilitation Program. Mr. Anderson explained that we received a CDBG Housing rehabilitation loan application from the Center for Energy and Environment (CEE) which needs to be submitted to Anoka County after the EDA approves the loan. The property at 4149 4'~ Street NE is planning on doing roofing, windows, doors, demolish the garage, install soffits and fascia, and fix plumbing, electrical, heating, exterior painting, gutter repair, replace kitchen cabinetry, as well as make health and safety improvements to the unit. MOTION by Donald Jolly, seconded by Pat Jindra, to approve the CDBG Housing Rehabilitation Grant Loan Application for Grant #C1997-03 in the amount of $14,475 for housing rehabilitation to Osborne Enterprises, and the Center for Energy and Environment subject to meeting all program requirements; and furthermore to authorize the Mayor and City Manager to enter into an agreement for the same. All Ayes. MOTION CARRIED. 5) Razing of Substandard Buildings. Mr. Anderson explained that the EDA has purchased three substandard properties with the intent of razing the buildings for redevelopment. The commercial building at 828 N.E. 40t~ Avenue, 3950 Lookout Place and 3944 Lookout Place. The City Council has declared the dwelling at 4358 N.E. 3~ Street a Hazardous Building, under Resolution 99-15. The Building Official and City Attorney will attend Anoka County Court on August 21, 2000 to seek the permission and assess the costs to the property in the form a special assessment. Staff is asking the Board to direct staff to draft demolition specifications for the projects, solicit bids for the projects and to direct the City Manager .and Mayor to enter into a contract for the razing of the buildings with the lowest, responsible, qualified bidder. The project will be funded by 415 PIR Abatement Funds. EDA owned properties will use CDBG Funds. Economic Development Authority Minutes August 16, 2000 Page 4 of 5 MOTION by John Hunter, seconded by Marlaine Szurek to adopt Resolution 2000-59, authorizing staff to prepare specifications and solicit bids for the razing of 4358 NE 3ra Street, 828 NE 40~ Avenue, 3944 Lookout Place, and 3950 Lookout Place and furthermore; to authorize the Mayor and City Manager to enter into an agreement for the same. All Ayes. MOTION CARRIED. ADMINISTRATIVE REPORTS. A. Report of the Deputy Executive Director. 1) Property Sale Update - 4216 Central Avenue NE. Staff received plans last week from Mr. Nedegaard for this property. Currently, the planner is reviewing the new plans for any conflict with the City Code. City Council and the Planning and Zoning Commissioners approved the plan last fall. The City Planner is reviewing the plan to see if there is any substantial changes in the plans. If so, the plans would have to go before the City Council and Planning and Zoning Commission again. In discussion, Pres. Ruettimaun asked if this can possibly be sold and settled by the end of summer if there are not any significant changes in the plans? Mr. Anderson stated that the original agreement stated that this project should be finalized before the first of the year. Then we extended the agreement until spring of 2000. What staff is asking for at this time is that the EDA extend this agreement using the same terms as used last time to extend it for another couple of months. Mr. Ruettimann wanted it recorded that the EDA did not own the property until March of 2000, so that we only had a verbal agreement with Mr. Nedegaard, not a purchase agreement. MOTION by Szurek, seconded by Jindra, that we extend the current purchase agreement between Mr. Nedegaard and the EDA until September 30, 2000. All Ayes. MOTION CARRIED. 2) Update on Acquisition of 3855 Main Street NE. Mr. Schumacher reported that he has finalized the Acquisition of 3855 Main Street NE., Columbia Heights. The closing was held on Tuesday, August 15, 2000. At this point the options are for the City Council to sell the property to the neighbors on either side at a cost of $10,000 a piece and they would be willing to remove the blighted home at their own expense thus making their property lots larger. The City Council could also sell the property to a developer to rebuild a new home on the land. Mr. Anderson indicated that the lot is 40 x 26 and approximately 5,063 sq ft. We generally consider a lot at 6,500 square feet to be a buildable lot size, however, there are provisions in the ordinance that allows you to go down to 3,900 square feet. 3) Downtown Master Plan. Mr. Anderson reported that the Downtown Master Plan was approved by the City Council last Monday night with the "Town Square" concept being the approved option. This plan will be presented to the EDA in September for approval. A copy of this Task Force initiated plan will be given to the EDA Board members next week for review. 4) Community Fix-Up Fund. Mr. Anderson reported that staff has received a copy of the letters regarding the Discount Loan Program or Community Fix-Up Funds program that will be going out to residents of Columbia Heights with Cape Cod and Rambler homes informing them of the funds that Columbia Heights has available to them for upgrading these types of homes. These homes were constructed before 1970. Household incomes must be less than $78,890 to receive an interest rate between 2 and 6 percent depending on income. These letters should be mailed out in the next week or so to the Columbia Heights residents. B. Report of the Executive Director. C. Committee/Other Reports. Pres. Ruettimann verified that all Commissioners have had a chance to read Michelle Chahn's exit report. He expressed his feelings that this is a very valid report for both the EDA and Crest View Management. The EDA's thanks goes out to Crest View Management for providing this report. Economic Development Authority Minutes August 16, 2000 Page 5 of 5 MEETINGS A. The next Regular EDA meeting is scheduled for 6:30 p.m., Tuesday, September 19, 2000 in Commu- nity Room B at Parkview Villa. ADJOURNMENT. MOTION by Donald Jolly, seconded by Pat Jindra, to adjourn the meeting at 8:02 p.m. All Ayes. MOTION CARRIED. Respectfully submitted, Kenneth R. Anderson Recording Secretary H_~.'EDAminutes\8-16-2000 mission of the Columbia Heights Economic Development Authority is to provide .~n~ancial and technical assistance and resources to residential, commercial, and ~ustrial interests to promote health, safety, welfare, economic development and edevel opmen t . COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) SPECIAL MEETING MINUTES OF AUGUST 28, 2000 CALL TO ORDER. The Special Meeting of the Columbia Heights Economic Development Authority (EDA) was called to order by President Ruettimann at 6:30 p.m., Monday, August 28, 2000, in the Conference Room 1, Columbia Heights City Hall, 590 40~ Avenue N.E., Columbia Heights, Minnesota. ROLL CALL. Commission Members Present: Commission Members Absent: Staff Present: Robert Ruettimann, Patficia Jindra, Marlaine Szurek, Don Jolly, Gary L. Peterson, Julienne Wyckoff, and John Hunter Walt Fehst, Executive Director Kenneth Anderson, Deputy Executive Director Randy Schumacher, Community Development Assistant PLEDGE OF ALLEGIANCE. APPROVE UNIT RELOCATION FEE OF $125 FOR PERSONS ON EXISTING WAITING I.LqT FOR INTERNAL MOVES AT PARKVIEW VILLA. President Ruettimann introduced this agenda item and indicated that the EDA Board had taken action at its meeting in July to increase the fee charges to Parkview Villa North and South residents wishing to relocate from one unit in the building to another unit. The previous relocation fee was set at $125. This fee was increased to $400 to account for the expenses incurred to paint the vacated unit, clean carpets, and perform other minor repairs, maintenance and clean up. The increased fee was to be effective September 1, 2000. President Ruettimann stated that at the time of approval on July 18, 2000 information was not presented to the Board stating that there were approximately fifteen persons on the waiting list. As a result, it was his desire to amend the policy to "grandfather" those persons on the waiting_list for internal moves at the former fee of $125. Therefore, fifteen (15) members on the current internal move waiting list would not be subject to the increased fee of $400, rather they would be able to move at some future time after September l, 2000 at the rate of $125. The impact of this change in policy will mean that the $275 in lost revenue per unit for the fifteen members on the existing relocation list may result in less income in the total amount of $4,125. MOTION by Don Jolly, seconded by Marlaine Szurek, to amend the internal relocation fee to allow all fifteen (15) persons on the attached relocation list dated August 23, 2000, be subject to the relocation fee of $125. All Ayes. MOTION CARRIED. Discussion followed on how the waiting list was administered according to the date persons signed. The Board requested that a written procedure on how the units are offered to the residents be provided to the Board members. They also requested that the residents be notified in writing of their current place on the relocation list. ADOPT PRELIMINARY 2001 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY BUDGET AND PROPOSED 2001 LEVY. President Ruettimann introduced the discussion on the Preliminary 2001 EDA Budget and Proposed 2001 Levy. President Ruettimann introduced this item and indicated that staffhad prepared a Preliminary Proposed Budget for f~scal year 2001and drafted Resolution 2000-1 lwhich adopts the Preliminary Budget and recommendation setting the local levy. President Ruettimann indicated that it was only necessary for the EDA to approve the levy and suggested that it be set at the maximum limit allowed by State Statute. Anderson indicated that staff recommended the levy be set at $119,295 based upon the formula for calculating the maximum EDA levy that would not be subject to a reverse referendum. Anderson then corrected himself and indicated that the recommended levy of $119,295 is the same levy amount adopted for taxes payable in 2000. The Statute allowed a maximum levy to be $120,020.96. That figure was arrived at by taking the statutory levy maximum of .01813% of the taxable market value in the City. Discussion followed on the need to set the levy as an amount, or in the alternative, to pass a motion to set the maximum amount allowed in the event there is a change. William Elrite, Assistant Treasurer, indicated the levy Economic Development Authority Minutes August 28, 2000 Page 2 needed to be established as a dollar mount and that the City Council would be forwarding a recommendation on the maximum levy to Anoka County by September 15, 2000. President Ruettimann determined that it was only necessary to set the maximum EDA local levy and said that the Budget can be reviewed in detail later. MOTION by Julienne Wyckoff, seconded by Marlaine Szurek, to adopt EDA Resolution 2000-11, being a Resolution of the Columbia Heights EDA recommending setting the EDA local levy of $119,295. All Ayes. MOTION CARRIED. There being no further business, President Ruettimann adjourned the 'meeting at 6:45 p.m. Respectfully submitted, Kenneth R. Anderson Assistant Secretary/Deputy Executive Director Attachment H:~EDAminutes\Special Mtg 8-28-00 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: September 19, 2000 AGENDA SECTION: Consent Agenda ORIGINATING EXECUTWE NO: DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Ken Anderson ~ -' BY: DATE: September 12, 2000 BACKGROUND: The bound Financial Report for August 1, 2000 Check Listing (green sheets), and draft Resolution 2000- 12 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 from January 1 through August 31, 2000. The Check History shows each fund with an expenditure history during the month of August, 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 2000-12, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement for August, 2000 and Payment of Bills for the month of August, 2000. EDA ACTION: EDA RESOLUTION 2000-1--2 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR AUGUST, 2000 AND PAYMENT OF BILLS FOR THE MONTH OF AUGUST, 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 August,2000 and the list of bills for the month of August,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;XResolutions~2000-12 Parkview Villa Housing Complex 965 N.E. 40th Avenue, Columbia Heights, MN 55421 (612) 782-0857 DATE: SEPTEMBER 11, 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 KOTTSICK,~OUSING ADMINISTRATOR KARl WlLSON?~IOUSlNG MANAGER RE: JULY/AUG MANAGEMENT REPORT FOR PARKVIEW VILLA & 4607 TYLER PHYSICAL PLANT: Elevator modernization project - Work is progressing. The technicians are doing final tweaking and it will be running as soon as it passes inspection. Annual re-certification meetings have been taking place on a daily basis. As of today 61 have been completed by Anita and Karl. Many more appointment have been scheduled for the next 2 weeks, we try to complete at least 8 a day. Notices will be sent out to those who have not contacted the office for an appointment and an appointment will be scheduled for them. The Maintenance Coordinator is in the processes of receiving bids to add shut off valves to each floor in the north building. This would prevent having to shut off the water to the entire buildingwhen making any plumbing repairs. As of today we have 5 apartments that need faucet repairs and their individual shut off valves are no longer working. It is anticipated that as the building continues to age we may run into further shut off valve failure. As you may know shutting the water main down does create a lot of sediments moving threw the pipes which in turn may cause further faucet and toilet problems. So in a nutshell it is felt by adding the shut off valves to each floor in the future we will be able to isolate specific plumbing problems and repair much quicker without effecting the entire building. Owned by the EDA of the City of Columbia Heights Managed by Crest View Management Services Equal Housing Opportunity Agency The Maintenance Coordinator is also looking at the price of adding additional fencing at 4607 Tyler as there have been numerous complaints from current residents about people cutting threw the fenced in area at all hours of the day. OCCUPANCY: NORTH BUILDING: APT # VACANCY DATE 101 Aug. 31 405 Aug. 15 409 Sept. 1 509 March 1 609 June 30 NAME MOVE-IN DATE working off waiting list John Cole Sept. 1 John Morgenthaler when apartment is ready Millar for elevator modernization project Bernard Baler when apartment is ready SOUTH BUILDING: APT# vacaNcY DATE 419 Sept. 15 NAME MOVE-IN DATE working off waiting list Waiting list totals are as follows: Parkview Villa North 20 CH Residents 36 Non-residents 4607 Tyler 4 CH Residents 7 Non-residents Parkview Villa South 29 CH Residents 16 Non-residents MlSC: For informational purposes the Parkview Villa calendar is attached. No changes have been made regarding the security at Parkview Villa since the last EDA report in Aug. The Parkview Villa fall picnic is scheduled for Tuesday, September 26 at 5:30, invitations have been included with this report. 0~ 0 Ee PARKVIEW VILLA HARVEST FESTIVAL TUESDAY, SEPTEMBER 26, 2000 5:30- 7:30 P.M. EAST LAWN The Menu will include: HAMBURGERS & CHICKF~N BRI~,~ ASTS POTATO SALAD, CHIPS, COLESLAW, BAKED BEANS APPLE CRISP & ICE CREAM. All Parkview Villa residents welcome! Entertainment will be provided, so bring your appetite and share the evening with your neighbors This event is sponsored by the Columbia Heights Economic Development Authority and Crest View Corporation RSVP To the Parkview Office by Tuesday, September 18, 9:00 a.m. DETACH AND RETURN TO THE PARKVIEW VILLA OFFICE BY TUESDAY, SEPT. 18 Yes, I will attend the picnic at Parkview Villa Number attending (Parkview Villa residents only! !) o NAME DATE PARKVIEW VILLA HOUSING COMPLEX INTRA-BUILD!NO RELOCATION POLICY Policy: Procedure: It is the policy of Parkview Villa that residents that desire to relocate from one apartment to another within Parkvicw Villa will be allowed under the following conditions. A. Residents who desire to relocate will complete a Request to Relocate Dwelling Units form. Names of current residents who desire to relocate into a different area of PW will be maintained by the Management Office on a first come- first serve basis. PVV residents will on this list will be offered the opportunity to move into vacant units, prior to such units being offered to non-PVV residents. After vacant units become available, interested PVV residents on the Intra-Building list shall be allowed a maximum of five days to indicate their desire to relocate into the available apartment. B. PW residents relocating from one unit to another shall be required to leave their aparanent in a clean re-rentable condition or pay for thc cost of having such cleanup completed. AH costs for telephone line and cable TV transfers and any other relocation expenses are to be paid by the relocating resident. . C. An Intra-Building relocation fee of $125.00 shah be paid by PVV residents relocating from one unit to another within the building who were on the relocation list prior to July 18, 2000. An Intra Building relocation fee of $400.00 shall be paid by PVV residents on the relocation list at,er July 17, 2000. This fee is intended to cover the extra administrative and maintenance work involved in rent up of units. Parkview Villa Housing Complex 965 N.E. 40th Avenue, Columbia Heights,. MN 55421 (612) 788-6055 · Fax (612) 782-0857 REQUEST .TO RELOCATE DWELLING UNITS Resident: Current Apartmentt Date of Request: I am requesting to relocate to another dwelling unit within the building that I currently reside (Parkview North or Parkview South). I understand that a charge applies to ail lntra-bullding relocations, and that I must pay any charges per my lease agreement. I, also, understand that failure to pay any applicable fees is a violation of my lease. Resident Signature Date Note: A waiting list for intra-building relocations will be maintained. The applicant at the top of the list will be offered an apartment as they vacate. Residents that ~refuse an offered apartment for the second time will be moved fo the bottom of the waiting list. pvv/wp/relocate Owned by the EDA of the City of Columbia Heights Equal Housing Opportunity Agency Managed by Crest View Management Services "-' COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting off September 19, 2000 AGENDA SECTION: Items for Consideration ORIGINATING EXECUTIVE NO: 9-A-1 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Resolution 2000-13 Board Resolution BY: Kenneth Anders~ BY: Approving Calculation of Performance Funding DATE: September 14, 2000'- ' System Operating Subsidy for 2000. BACKGROUND: A Board resolution is required on ah annual basis which approves the Calculation of the Performance Funding System Operating Subsidy. Attached is EDA Resolution 2000-13, along with related forms to be submitted to HUD for compliance purposes. RECOMMENDED MOTION: Move to approve the EDA Resolution 2000-13, being a resolution of the Columbia Heights Economic Development Authority confirming approval of the Calculation of Performance Funding System Operating Subsidy for 2000; and furthermore, to direct the Executive Director to forward same to the U.S. Department of Housing and Urban Development. Attachments EDA ACTION: H: \Consent\Calc. of Perf. Funding System EDA RESOLUTION 2000-13 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY CONFIRMING APPROVAL OF CALCULATION OF PERFORMANCE FUNDING SYSTEM OPERATING SUBSIDY FOR 2000. WHEREAS, The Department of the Housing and Urban Development has requested that Public Housing Agencies submit the calculation of Performance Funding System operating Subsidy for 2000 with attachments; and WHEREAS, such Certification also requires the formal approval of the Board of Commissioners; NOW THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that the attached Calculation of Performance Funding System Operating Subsidy for 2000 and the necessary attachments are hereby approved. ADOPTED THIS day of ,2000. MOTION BY: SECONDED BY: AYES: NAYS: Robert Ruettimann, President Attest by: Walter R. Fehst, Executive Director PHAJIHA Board Resolution Approving Operating Budget or Calculation of ,,,E.erformance Funding System Operating Subsidy U.S. Department of Housing and Urban Development Office of Public and Indian Housing OMB Approval No. 2577-0026 (Exp. 6/30/2001) ~ublic reporting burden for this collection of information is estimated to average 15 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless that collecton displays a valid OMB control number. This information is required by Section 6(c)(4) of the U.S. Housing Act of 1937. The information is the operating budget for the Iow-income housing program and provides a summary of proposed/budgeted receipts and expenditures, approval of budgeted receipts and expenditures, and justification of certain specified amounts. HUD reviews the information to determine if the operating plan adopted by the PHA and the amounts are reasonable and that the PHA is in compliance with procedures prescribed by HUD. Responses are required to obtain benefits. This information does not lend itself to confidentiality. Acting on behalf of the Board of Commissioners of the below-named Public Housing Agency (PHA)/Indian Housing Authority (IHA), as its Chairman, I make the following certifications and agreements to the Department of Housing and Urban Development (HUD) regarding the Board's approval of (check one or more as applicable): Operating Budget Submitted on: Operating Budget Revision Submitted on: Calculation of Performance Funding System Submitted on: (date) 9-19-2000 Revised Calculation of Performance Funding System Submitted on: I certify on behalf of the: (PHA/IHA Name) Co]umbJa Heights Economic that: 2. 3. 5. 6. 7. 8. Development Authority The The and All regulatory and statutory requirements have been met; The PHA has sufficient operating reserves to meet the working capital needs of its developments; Proposed budget expenditures are necessary in the efficient and economical operation of the housing for the purpose of serving Iow-income residents; The budget indicates a source of funds adequate to cover all proposed expenditures; The calculation of eligibility for Federal funding is in accordance with the provisions of the regulations; All proposed rental charges and expenditures will be consistent with provisions of law; PHA/IHA will comply with the wage rate requirements under 24 CFR 968.110(e) and (f) or 24 CFR 905.120(c) and (d); PHA/IHA will comply with the requirements for access to records and audits under 24 CFR 968.110(i) or 24 CFR 905.120(g); The PHA/IHA will comply with the requirements for the reexamination of family income and composition under 24 CFR 960.209, 990.115 and 905.315. ~,J, bereby certify that all the information stated within, as well as any information provided in the accompaniment herewith, is true and accurate. ming: HUD will prosecute false ctaims and statements. Conviction may result in cdminal and/or civil penalties. (18 U.S.C. 1001,1010,1012; 31 U.S.C. 3729, 3802) Board Chairman's Name (type) Signature Robert Ruettimann, President Previous edition is obsolete Date form HUD-52574 (10/95) ref. Handbook 7575.1 ' ertification for Drug-Free Workplace f-~ Columbia Heights Housincj ficant Name Parkview Villa U.S. Department of Housing and Urban Development and Redevelopment Authority Program/Activity Receiving Federal Grant Funding Acting on behalf of the above named Applicant as its Authorized Official, I make the following certifications and agreements to the Department of Housing and Urban Development (HUD) regarding the sites listed below: I certify that the above named Applicant will or will continue to provide a drug-free workplace by: a. Publishing a statement notifying employees that the un- lawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the Applicant's work- place and specifying the actions that will be taken against employees for violation of such prohibition. b. Establishing an on-going drug-free awareness program to inform employees --- (1) The dangers of drug abuse in the workplace; (2) The Applicant's policy of maintaining a drug-free workplace; (3) Any available drug counseling, rehabilitation, and ; -'~loyee assistance programs; and .... (4) The penalties that may be imposed upon employees for drug abuse violations occurring in the workplace. c. Making it a requirement that each employee to be engaged in the performance of the grant be given a copy of the statement required by paragraph a.; d. Notifying the employee in the statement required by para- graph a. that, as a condition of employment under the grant, the employee will --- (1) Abide by the terms of the statement; and (2).. Notify the employer in writing of his or her convic- tion for a violation of a criminal drug statute occurring in the workplace no later than five calendar days after such conviction; ,. e. Notifying the agency in writing, within ten calendar days after receiving notice under subparagraph d.(2) from an em- ployee or otherwise receiving actual notice of such conviction. Employers of convicted employees must provide notice, ihclud- lng position title, to every grant officer or other designee on whose grant activity the convicted employee was working, unless the Federalagency has designated a central point for the receipt of such notices. Notice shall include the identification number(s) of each affected grant; f. Taking one of the following actions, within 30 calendar days of receiving notice under subparagraph d.(2), with respect to any employee who is so convicted --- (1) Taking appropriate personnel action against such an .employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or (2) Requiring such employee to participate satisfacto- rily in a drug abuse assistance or rehabilitation program ap- proved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; g. Making a good faith effort to continue to maintain a drug- free workplace through implementation of paragraphs a. thru f. 2. Sites for Work Performance. The Applicant shall list (on separate pages) the site(s) for the performance of work done in connection with the HUD funding of the program/activity shown above: Place of Performance shall include the street address, city, county, State, and zip code. Identify each sheet with the Applicant name and address and the program/activity receiving grant funding.) Check here ~-] if there are workplaces on file that are not identified on the attached sheets. I hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. "'~,ning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. '~, ,,,,j (18 U.S.C. 1001. 1010, 1012; 31 U.S.C. 3729.3802) Name of Authorized Official I Title Walter R. Fehst H~ Executive Director Signature X Date form H U D-50070 (3/98) ref. Handbooks 7417.1,7475.13, 7485.1 & .3 PHA/IHA Board Resolution u.s.Department of Housing OMB Approval No. 2577-0026 (Exp. 6/30/2001) and Urban Development Approving Operating Budget or Calculation of Office of Public and Indian Housing Performance Funding System Operating Subsidy ~31ic reporting burden for this collection of information is estimated to average 15 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless that collecton displays a valid OMB control number. This information is required by Section 6(c)(4) of the U.S. Housing Act of 1937. The information is the operating budget for the Iow-income housing program and provides a summary of proposed/budgeted receipts and expenditures, approval of budgeted receipts and expenditures, and justification of certain specified amounts. HUD reviews the information to determine if the operating plan adopted by the PHA and the amounts are reasonable and that the PHA is in compliance with procedures prescribed by HUD. Responses are required to obtain benefits. This information does not lend itself to confidentiality. Acting on behalf of the Board of Commissioners of the below-named Public Housing Agency (PHA)/Indian Housing Authority (IHA), as its Chairman, I make the following certifications and agreements to the Department of Housing and Urban Development (HUD) regarding the Board's approval of (check one or more as applicable): Operating Budget Submitted on: Operating Budget Revision Submitted on: Calculation of Performance Funding System Submitted on: Revised Calculation of Performance Funding System Submitted on: (date) 9-19-2000 I certify on behalf of the: (PHA/IHA Name) that: Columbia Heights Economic Development Authority 1. All regulatory and statutory requirements have been met; The PHA has sufficient operating reserves to meet the working capital needs of its developments; 3. Proposed budget expenditures are necessary in the efficient and economical operation of the housing for the purpose of serving low-income residents; 4. The budget indicates a source of funds adequate to cover all proposed expenditures; 5. The calculation of eligibility for Federal funding is in accordance with the provisions of the regulations; 6. All proposed rental charges and expenditures will be consistent with provisions of law; 7. The PHA/IHA will comply with the wage rate requirements under 24 CFR 968.110(e) and (f) or 24 CFR 905.120(c) and (d); 8. The PHA/IHA will comply with the requirements for access to records and audits under 24 CFR. 968.110(i) or 24 CFR 905.120(g); and 9. The PHA/IHA will comply with the requirements for the reexamination of family income and composition under 24 CFR 960.209, 990.115 and 905.315. I hereby certify that all the information stated within, as well as any information provided in the accompaniment herewith, is true and accurate. ~ming: HUD will prosecute false claims and statements. Conviction may result in cdminal and/or civil penalties. (18 U.S.C. 1001, 1010,1012; 31 U.S.C. 3729, 3802) Board Chairman's Name (type) Robert Ruettimann, President Previous edition is obsolete Date /f(~rm'H'U D-5-2574 (10~95) ref. Hand book 7575.1 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: September 19, 2000 AGENDA SECTION: Bid Considerations ORIGINATING EXECUTIVE NO: 9-B-1 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Parkview Villa Proximity Readers and BY: Kenneth Ande solon ~~fl BY: Security Camera System DATE: September 14, 2000 BACKGROUND: The Police Chief and Deputy Executive-Director met with Bruce Vogelsvange of Trans-Alarm. They prepared an estimated bid for installation of security cameras at Parkview Villa as well as the installation of Proximity Readers which use parts similarly to those used at City Hall for entry into the building. Based upon the review of the proposed bid by the Police Chief and Deputy Executive Director, it was determined that further revisions to the bid were necessary. As a result, Mr. Vogelsvange and his key specialist will be visiting Parkview Villa sometime between September 14t~ and September 18t~ to verify conditions in the field. He has further assured me that a proposal will be received by staff not later than Tuesday afternoon, September 19th. As a result, staff will be preparing the EDA letter for consideration of approval to proceed with this work upon receipt of the revised proposal from Trans-Alarm. Staff is seeking direction from the Board to either approve the proposal as submitted or to determine if there are other issues of concern the Board which may wish to be addressed. RECOMMENDED MOTION: Move to award the proposal to install Security System Cameras and Proximity Readers to Trans-Alarm, Inc. based upon their proposal of September 19th, 2000 in the total amount of $ ; and furthermore to authorize the President and Executive Director to enter into an agreement for the same. EDA ACTION: ~:\~onsent\PPV Security Cameras I I 09/19/00 15:27 "~ ~001/004 Trans-Alarm, Inc. 500 East Traveler~ ~ Burnsville, M~N 55337 Diane Mensing Phone (612) 8~-1709 ext. 133 Fax (612) 894-18~ Ken Andersen Bruce Vog~mng Fern 706-367 706-3672 ~.t~: 9.19.00 City of Columbia ~Uai~ta ~ The following Proposal is for your review. If you have any questions or comments please contact Bruce Vogelgesang a~ 952-89d.-1700 x126. 09/19/00 15:27 ~ ~003/004 Trans-Alarm, Inc. PAGE ! OF ! 500 East Travelers Trail Burnsville, Mn 55337 (612) 894-1700 PROPOSAL C[~ ~f Columbb Hei~ ................. B~te Vogelg~; July 3, 2~0 P~kv~w Villa ~5 ~th Ave ~E K~ ~de~on CoI-H~96S~A Ci~, STATE, ZIP CONTACT P~E Colnmb~ Re, Mn. 5~1 ~2 ?06-36T1 ~ OF AeC~ ConSol THE SYSTEM PRO~SED WILL IN~UDE: C~ ACCESS Sy~M - 2 Self Confined Indoor Siren ~20. l 0 ~40 20 2 Mn~fic ~or Con~ Brown $12,60 $25.20 2 ~;600 S~n;er ~mm=[ M~em w/Pho~ Jack $275,30 S550.60 I ~2V~ Power Supply Kiz(~r ~op) $52.~0 2 ~h~d ~12 ,~ $24.00 I t.a~chgu=d $24.9~ 1 Ced A~ess P~el 4-~=s $2,442.~0 $2,442.S0 I ~-48~ P~el ln~e Vet. 2 $14~.50 $145,~0 I RS~85 Dial Up lap.ace Vet, 2 ~58.~ $2~8,00 I P~ / Inter. ce Kit $83.50 $83.~0 ~ Mini ~ox R~ 4" (Blk) ~53.80 $1,81 ~.20 1 El~c ~e $275.00 $275.~ 2 EI~B~ 1~ I~k- F/S~e $411.00 ~822.00 2 ~r ~rd $20.00 ~0.~ I Wi~old Mi~. F~nEs & Conn~s $42.50 $42.50" ] Lot: Wir~C~le & Conn~m~ $585.00 $585,00 I Conduit- ~gid $675.00 $675.00 I WiremoId $92.25 $92,25 ' Total Ha~wa~: $~,993.~ ~ ~~~~ ~8:~m~ Ins~a~on: S6,294.'~5 Noma s~on. It ~s ~ info~a~on ~a{ is ~ m~ Sub-T~: $14~88.15 ~ of ~ ~o~. ~1-~ ~o~ ~, v~id ,~r a ~ of ~ Sales T~: $519.60 d~s o~y. ,,, , " Grand Total: 09/19/00 15:28 '~ ~004/004 ' ~E city of Columbia Heights N~J~, Parkview Villa ADDRESS 965 4O~h Ave NF CITY,STAT'E,ZJP PR-MtNI-PROX · .P.D_9 I_N?ERFA.C_E..(_~_ 747 1078BR 7'47 10788R PR-MINI-PROX SC DSOLD-EL-RHO-626 LG LG110-Z ST TSB-C pR-~IlNI-PROX RC 7114-08D-10B MM AGI-O PR-MIN FPROX SC DSOLD-EL-RHO-626 LG LGl10-Z STTSS-C CoI.H~s-9~5-C^ A~:ce$$ Control TOTALS MI~C, Pjaina?~duit ._ ,- ..... Wiremold Mdc Fittings & C~nnecwm Lot: Wire/Cable & Con~ectors 275.3~' 258_00 2,442.50 145.50 52.50 453.80 83.50 20,10 20.10 12,60 453.80 411.00 12.00 20.00 453.80 24.95 453.80 411.00 20.00 675.00 92.25 42.50 585.00 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: September 19, 2000 AGENDA SECTION: Other Business ORIGINATING EXECUTIVE NO: 9-C-1 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Approval of Preliminary Development BY: Kenneth AndersonF~' BY: A~eement DATE: September 13, 2000~- BACKGROUND/ANALYSIS: Attached please find a memorandum from Dan Greensweig, Legal Council with Kennedy and Graven, Chartered. The cover memo and attached Preliminary Development Agreement discuss the background and policy highlights of concern to the Columbia Heights Economic Development Authority and the City of Columbia Heights. The attached Preliminary Development Agreement will require approval by the City-of Columbia Heights and the Columbia Heights Economic Development Authority as well as the developer, Columbia Heights Transition Block, LLC. The attached draft is the fifth draft and is dated September 15, 2000. Please refer to the attached memorandum for a discussion of the issues and policies which should be considered by the Columbia Heights EDA for consideration prior to approval of the proposed Preliminary Development Agreement. RECOMMENDED MOTION: Move to approve the Preliminary Development Agreement by and among the City of Columbia Heights and Columbia Heights Economic Development Authority and Columbia Heights Transition Block, LLC; and furthermore, to authorize the President and Executive Director to enter into an agreement for the same. Attachments EDA ACTION: .ansition Block Redevelopment\Preliminary Agreement Draft5 ,Ken Andgr~on - Cover letter mem© re real, ,estateeq,uities Preii~iq~ deve!opme,~ c0n .~, page1 EDNCity Council September 13, 2000 Page 1 of 3 CHARTERED 470 Pillsbury Center 200 South Sixth Street Minneapolis MN 55402 (612) 337-9300 telephone (612) 337-9310 fax http:l/www, kennedy-cjraven.com DANmL J. G~[~sw~:¢ Attorney at La~ Direct Dial (612) 337-9231 e-mail: d~reensweio~kennedv-graven.co~ September 13,2000 President and Commissioners Columbia Heights Economic Development Authority 590 409 Avenue, NE Columbia Heights, MN 55421 Mayor and Councilmembers City of City of Columbia Heights 590 40th Avenue NE Columbia Heights, MN 55421 BY E-MAIL Ken Anderson asked that I provide you with this memo as a brief description of the Real Estate Equities/Crest View preliminary development agreement being considered by the City of Columbia Heights and the Columbia Heights Economic Development Authority. (You will note that there are a number of different development entities referenced in the agreement, but they are all controlled by, closely related to, or established by Real Estate Equities or Crest View, and I will use those names for ease of discussion). I am assuming that you will have drawings available at your meetings and that someone will be present and able to answer planning, architectural, and related questions, and I will therefore not attempt to describe the project from those perspectives. AlthoUgh this memo should not be considered a substitute for a complete review of the entire agreement, there are a number of points that are worth highlighting. To begin with, and perhaps most importantly, this agreement is intentionally designed as a preliminary agreement, as DJG-186055vl CL205-11 I Ken Anderson - Cover letter memo re real estate equities preliminary development con Page ,2 EDNCity Council September 13, 2000 Page 2 of 3 explained in its Section 3.4. Therefore, it is subject to the City, the EDA, and the developer mutually making decisions on any number of design, planning, and financing issues, and those decisions being reflected in future documents that will supercede this preliminary one. Failure to reach agreement on those points will essentially result in this preliminary agreement terminating without any further obligation on behalf of the city or EDA. Nevertheless, Real Estate Equities believes that the City and EDA are interested in the proposed project and feels that this sort of preliminary agreement will help in a number of ways, including making it easier for Real Estate Equities to obtain both the property it needs and other sources of financing. As to the actual content of the transaction, it can be summarized as follows. Real Estate Equities will construct a 22-unit Iow-income tax credit eligible rental complex. Crest View will construct a 50-unit senior rental housing facility. Both these projects will be constructed according to the terms of a planned unit development agreement that is in the process of being worked out by the city attorney, and that will also include NEI, which is the current owner of much of the property that will be used for the new development. In addition to entering into the PUD agreement, the City and EDA will participate in two major ways. First, they will assist Real Estate Equities in obtaining title to property necessary to the project, including an existing locksmith shop and the home at 4157 Jackson Street. I believe that discussions are underway with those property owners. : Second, the EDA will establish a tax increment financing district, presumably a redevelopment district, to help provide financing. While no definite agreements have been reached, it is currently envisioned that revenue notes with a 21-year term would be issued. Real Estate Equities would use the TIF generated by the tax credit project to help support its cash flow. Crest View would use the TIF generated by the senior rental facility to help repay 501(c)(3) revenue bonds that would be issued by the City to assist in financing construction of this facility. This financing plan would also be supported by money received through Livable Communities grants, HOME funds, CDBG funds, and MHOP sources. Again, however, the financing plan has not been finalized, and a number of issues, such as the source and application of the local match necessary for the proposed redevelopment TIF district, has not yet been formally determined. There arc, of course, a number of other provisions in the preliminary agreement, pertaining to insurance requirements, construction plans, and the like, but they arc for the most part self- explanatory and I do not think it is necessary to go over them in this memo. From the perspective of the City and the EDA, the most important questions you should ask as you determine whether to approve execution of this agreement are: Do you approve of this project from a policy standpoint, after considering land use, economic development, and other related objectives? Do you want to encourage Real Estate Equities to continue moving ahead with the project? DJG-186055vl CL205- i 1 Ken Anderson - Cover letter memo re real estate equities prelim!narY development con Page 3 EDA/City Council September 13, 2000 Page 3 of 3 Does the proposed structure of the project, both financial and otherwise, seem appropriate in a very general way? If the answer to any of the previous questions are no, then the agreement should not be executed, at least until any concerns can be resolved. If the answers to the previous questions are yes, then I recommend that the EDA and City approve exeeution of this preliminary agreement, doing so with the understanding that either body, or Real Estate Equities, can terminate the agreement and stop the process at almost any time prior to final agreements being signed. I offer this recommendation, however, 'with the understanding that even though the agreement allows termination at virtually any time, it is always better to address issues and concerns earlier rather than later. Thus, I would not suggest entering into the agreement if either the EDA or the City believes that there are currently significant and potentially insurmountable obstacles to the construction of the proposed facilities. In any event, to the extent that it has not already occurred, this is an appropriate time for the EDA and the City to have a thorough public discussion with Real Estate Equities about its proposal. Please let me know if you have any further questions or ifI can be of any further assistance. Sincerely, Daniel J. Greensweig DJG: Attachments DJG-1860SSvl CL205-11 I I Ken Anderson- fifth draft real estate equities preliminary development contract:doc Page Fifth Draft September 13, 2000 PRELIMINARY DEVELOPMENT AGREEMENT BY AND AMONG CITY OF COLUMBIA HEIGHTS AND Columbia Heights ECONOMIC DEVELOPMENT AUTHORITY AND Columbia Heights transition block llc Dated ,2000 This document was drafted by: KENNEDY & GRAVEN, Chartered 470 Pillsbury Center Minneapolis, MN 55402 (612) 337-9300 DJG-178166v5 CL205- I 1 Ken Anderson' fifth draft real estate equities Preliminary development contract, d°c Page 2 [ PRELIMINARY DEVELOPMENT AGREEMENT THIS AGREEMENT is made as of the __ day of ,2000 by and among the City of Columbia Heights, Minnesota, a municipal corporation under the laws of Minnesota (the "City"), the Columbia Heights Economic Development Authority, a body corporate and politic (the "Authority") Columbia Heights Transition Block LLC, a Minnesota limited liability company (the "Developer"). WITNESSETH: WHEREAS, the City and the Authority .have determined that: (i) the Developer has proposed a project to redevelop certain blighted property within the City; (ii) there is a need to alleviate a shortage of decent, safe and sanitary housing for persons aged 62 and older and other persons of low or moderate income in the City; and (iii) it is appropriate in this connection to envision the creation of one or more tax increment financing districts within the City pursuant to Minnesota Statutes, Sections 469.174 to 469.179; and WHEREAS, the City and the Authority have determined to address such blight and shortage in part through redevelopment of certain property within the City and the facilitation of the development of housing for low and moderate income persons as further described herein; WHEREAS, in order to achieve their objectives as described herein, the parties hereto are prepared to pay certain development costs and undertake certain activities in order to bring about redevelopment of blighted property and development of housing for persons of Iow or moderate income; : WHEREAS, the City and the Authority believe that the fulfillment generally of this Agreement is in the vital and best interests of the Authority and the City, and the health, safety, morals, and welfare of its residents, and in accord with the public purposes and provisions of the applicable State and local laws and requirements under which the development intended hereunder will be undertaken and is being assisted; and WHEREAS, the Developer desires to acquire title to certain real property within the City, to be transferred to separate parties designated herein for the purpose of developing and constructing a senior housing assisted living residential facility (the "Senior Housing Project") and a rental housing multi-family residential facility (the "Rental Housing Project"). NOW, THEREFORE, in consideration of the mutual covenants and obligations of the City, the Authority and the Developer, each party does hereby represent, covenant and agree with the other as follows.: 2 DJGo178166v5 CL205-11 Ken Anderson - fifth draft real estate equities preliminary development contract.doc Page 3 ARTICLE I Definitions Section 1.1. In this Agreement, unless a different meaning clearly appears from the context: "Agreement" means this Agreement, as the same may be from time to time modified, amended, or supplemented. "Authority" means the Columbia Heights Economic Development Authority. "Bond Documents" means, collectively, the documents entered into by any or all of the parties hereto in connection with issuance of the Bonds. "Bonds" means the tax-exempt 501(c)(3) bonds expected to be issued by the City to assist in financing the Senior Housing Project. "City" means the City of Columbia Heights, Minnesota. "Closing Date" means, with respect to the Senior Housing Project, the date of the issuance of the Senior Housing Note, and with respect to the Rental Housing Project, the date of issuance of the Rental Housing Note. "Concept Plan" means the plans, descriptions, and other materials set forth at Exhibit A hereto and pertaining to the Rental Housing Project and the Senior Housing Project. "Construction Plans" means plans, specifications, drawings and related documents on the construction work to be performed on the Property which (a) shall be as detailed as the plans, specifications, drawings and related documents which are submitted to the appropriate building officials of the City, and (b) shall include at least the following: (1) site plan; (2) landscape plan; and (3) such other plans or supplements to the foregoing plans as the City may reasonably request to allow it to ascertain the nature and quality of the proposed construction work and that are available to the Developer at a reasonable cost. The Construction Plans for any building to be constructed on the Property shall additionally include the following: (1) foundation plan; (2) basement plans; (3) floor plan for each floor; (4) cross sections of each (length and width); and (5) elevations (all sides). "Crest View" means Crest View Corporation, a Minnesota nonprofit corporation, or its permitted successors and assigns. "Crest View Advanced Missions I LLC" means Crest View LLC, a Colorado nonprofit limited liability company which is a member of Crest View ONDC I and of which Crest View Corporation is the single member. 3 DIG-178166v5 CL205-11 Ken Anderson - fifth draft real estate equities preliminary develoPment contrac[doc Page "Crest View ONDC I" means Crest View ONDC I, a Minnesota nonprofit corporation qualifying as an organization described within Section 501(c)(3) of the Internal Revenue Code of 1986, which has as its sole members Crest View Advanced Missions I LLC and ONDC. "County" means the County of Anoka, Minnesota. "Definitive Development Agreements" means thc final contracts for private development to be entered into pursuant to Section 3.1(i) among the City, the Authority and thc Rental Housing Owner with respect to the Rental Housing Project and among the City, the Authority and the Senior Housing Owner with respect to the Senior Housing Project. "Developer" means Columbia Heights 'i'ransition Block LLC, a Minnesota limited liability company, or its permitted successors and assigns. "Event of Default" means an action by the Developer listed in Article IX of this Agreement. "Holder" means the owner of a Mortgage. "Material" means any effect or change which significantly alters the intended use of thc Property, or increases or decreases the costs of any individual item of the Minimum Improvements by more than $100,000. "Maturity Date" means the date that the Notes have both been paid in full or have otherwise been terminated according to their terms. "Minimum Improvements" means thc construction on the Property of the Rental Housing Project and the Senior Housing Project. "Mortgage" means any mortgage made by the Rental Housing Owner or the Senior Housing Owner which is secured, in whole or in part, with the portion of the Property owned by such party and which is a permitted encumbrance pursuant to the provisions of Article VIII of this Agreement. "NEI" means N'E1 College of Technology, a Minnesota nonprofit corporation, which is the seller of the Property and the owner of real property adjacent to the Property. "ONDC" means Opportunity Neighborhood Development Corporation, a Minnesota nonprofit corporation. "Parcel 1" means the real property on which the Rental Housing Project will be constructed as shown generally on the Concept Plan. "Parcel 2 means thc real property on which the Senior Housing Project will be constructed as shown generally on the Concept Plan. 4 DJG-178166v5 CL205-1 l Ken Anderson - fifth draft real estate equities preliminary ~development contract.doc Page 5 "Planned Unit Development Agreement" means the agreement of such name to be entered into by and among the City, the Rental Housing Owner, the Senior Housing Owner, and NEI pertaining to granting of the appropriate permits and authorizations necessary to provide for a planned unit development project. "Property" means Parcel 1 and Parcel 2, collectively. "Rental Housing Note" means a Tax Increment Revenue Note to be delivered by the Authority to the Rental Homing Owner for the purpose of assisting in financing the Rental Housing Project, such note expected to have a term of 21 years and commit to payments by the Authority to the Rental Housing Owner of 89.75% of the 'Tax Increment generated by the Rental Housing Project and received by the Authority. "Rental Housing Owner" means Columbia Heights Housing Limited Partnership I, a Minnesota limited partnership, or its permitted successors and assigns. "Rental Housing Project" means the construction on Parcel 1 of a 22-unit affordable rental complex that: (i) meets all the requirements for a low-income tax credit under Section 42 of the Internal Revenue Code of 1986, as amended through the date of this Agreement; and (ii) otherwise complies with the requirements pertaining thereto as set forth in this Agreement, the Planned Unit Development Agreement, and the Definitive Development Agreements. "Senior Housing Note" means a Tax Increment Revenue Note to be delivered by the Authority to the Senior Homing Owner for the purpose of assisting in financing the Senior Housing Project, such note expected to have a term of 21 years and commit to payments by the Authority to the Senior Housing Owner 89.75%of the Tax Increment generated by the Senior Housing Project and received by the Authority. "Senior Housing Owner" means Crest View ONDC I, or, on an interim basis, pending receipt of a determination letter fi.om the Internal Revenue Service regarding the tax-exempt status of Crest View ONDC I and/or Crest View Advanced Missions I LLC. "Senior Housing Project" means the construction on Parcel 2 of a 50-unit senior rental homing facility that complies with the requirements pertaining thereto as set forth in the Bond Documents, this Agreement, the Planned Unit Development Agreement, and the Definitive Development Agreements. "State" means the State of Minnesota. "Tax Increment" means that portion of the real property taxes which is paid with respect to the TIF District and which is remitted to the Authority as tax increment pursuant to the Tax Increment Act. "Tax Increment Act" or "TIF Act" means the Tax Increment Financing Act, Minnesota Statutes, Sections 469.174 to 469.179, as amended. 5 DJG-178166v5 CL205-11 -Ken AnderSon' fifth draft real estate equities preliminary development c0ntrac[:~d0c Page 6 I "Tax Increment District" or "TIF District" means the one or more tax increment financing districts expected to be created by Authority to assist in financing construction of the Minimum Improvements. "Tax Increment Plan" or "TIF Plan" means the Authority's tax increment financing plan or plans, as the case may be, for the TIF District, as it or they may be amended. "Tax Official" means any County assessor, County auditor, County or State board of equalization, the commissioner of revenue of thc State, or any State or federal district court, thc tax court of the State, or the State Supreme Court. "Unavoidable Delays" means delays beyohd the reasonable control of the party seeking to be excused as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the City in exercising its fights under this Agreement) which directly result in delays. 6 DJG-178166v5 CL205-11 I I K~n AnderSOn' fifth draft real estate equities preliminary development contract, doc Page 7 j ARTICLE II Representations and Warranties Section 2.1. Representations by the City. The City makes the following representations as the basis for the undertaking on its part herein contained: (a) hereunder. The City has the power to enter into this Agreement and carry out its obligations (b) The activities of the City are undertaken to redevelop blighted property within the City and facilitate the creation of housing opportunities for persons aged 62 and older and other persons of low and moderate income. Section 2.2. Representations by the Authority. The Authority represents and warrants that: (a) The Authority has the power to enter into this Agreement and carry out its obligations hereunder. (b) The activities of the Authority are undertaken to redevelop blighted property within the City and facilitate the creation of housing opportunities for persons aged 62 and over and other persons of Iow and moderate income. Section 2.3. Representations and Warranties by Developer. Developer represents and warrants that: (a) Developer is a limited liability company in good standing under the laws of Minnesota and has power to enter into this Agreement. (b) Developer has received no notice or communication from any local, State, or federal official that the activities of the Developer, the City, the Authority, the Rental Housing Owner or the Senior Housing Owner pursuant to or envisioned by this Agreement may be or will be in violation of any environmental law or regulation. Developer is aware of no facts the existence of which would cause the Developer, the Rental Housing Owner or the Senior Housing Owner to be in violation of or give any person a valid claim under any local, State, or federal environmental law, regulation, or review procedure. (c) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by, or conflicts with or results in a breach of the terms, conditions, or provisions of any corporate or partnership restriction or any evidences of indebtedness, agreement, or instrument of whatever nature to which Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. 7 DSG- 178166v5 CL205-11 ~Ken Anderson- fifth draft real eState equities preliminary development Contract.doC ,' Page 8 (d) The development of the Minimum Improvements would not occur but for the tax increment financing assistance being provided hereunder. 8 DJG- 178166v5 CL205-11 I Ken Anderson- fifth draft real estate equities preliminary development contract, doc Page 9 J ARTICLE III Public Assistance and Other Undertakings Section 3.1. Undertakings of the Parties. In order to make development of the Minimum Improvements economically feasible, the parties to this Agreement expect to undertake certain activities, which may include, but not necessarily be limited to, the following: (a) On or prior to the Closing Date for the Rental Housing Project, the Developer shall transfer fee ownership of Parcel 1 to the Rental HOusing Owner and the Rental Housing Owner shall enter into the Definitive Development Agreement with the City and the Authority pursuant to which the Rental Housing Owner assumes all obligations of the Developer hereunder relating to the Rental Housing Project. On or prior to the Closing Date for the Senior Housing Project, the Developer shall acquire and transfer fee ownership of Parcel 2 to the Senior Housing Owner and the Senior Housing Owner shall enter into the Definitive Development Agreement with the City and the Authority pursuant to which the Senior Housing Owner assumes all obligations of the Developer hereunder relating to the Senior Housing Project. (b) The Developer shall cause the Rental Housing Owner and the Senior Housing Owner to undertake construction of the Minimum Improvements in substantially the form shown in the Concept Plan. (c) The City and the Authority shall take such steps as are required to review: (i) vacation of an existing alley; (ii) relocation of a an existing storm drainage pond and easement, (iii) the Planned Unit Development Agreement; and (iv) such other requests for replatting, lot splits, parking, financing, variances, rezoning, and related items as may be deemed necessary or desirable for construction of the Minimum Improvements. (d) The City or the Authority shall design, finance, and construct parking improvements and enter into agreements necessary to facilitate the Developer's execution and performance of a purchase agreement with NEI, such purchase agreement to be for the purpose of acquiring property necessary for the construction of the Minimum Improvements. (e) The City or the Authority shall cooperate with the Developer in acquiring other property necessary for the construction of the Minimum Improvements to the extent that such property is currently owned by third-parties, provided that the Developer shall be responsible for all costs of such acquisition, whether incurred by the Developer, the City, or the Authority, and provided further that the City or the Authority may undertake condemnation proceedings if either or both decide in their respective sole discretion that doing so will appropriately facilitate construction of the Minimum Improvements. (f) The City or the Authority shall acquire from the owner or, if it becomes the owner, the Developer, the real property parcel located immediately adjacent to the Property with the street address of 4157 Jackson Street, Columbia Heights, Minnesota, and shall move the existing single-family house thereon to a location within the City, such site to be determined in 9 DJG- 178166v5 CL205-11 J',Ken A~derSon ' fifth draft real estate equities pre!iminarY deve!~Pment c°ntmcLdOc page 10 j the sole discretion of the City or the Authority. (g) The City or the Authority shall undertake green space improvements adjacent to the Property, such improvements as to be determined to the mutual satisfaction of the parties to this Agreement and as generally shown in the Concept Plan. (h) The Authority shall, for consideration of $1.00, convey to the Developer, or to the Rental Homing Owner or the Senior Housing Owner, as. determined by the Developer, certain property owned by the Authority as of the date of this Agreement and necessary for the construction of the Minimum Improvements, as generally described in the Concept Plan. (i) The Authority shall enter into IJefinitive Development Agreements with the Senior Housing Owner and the Rental Housing Owner pursuant to which the Authority will issue the Senior Housing Note and the Rental Housing Note or otherwise undertake tax increment financing assistance to the Senior Housing Project and the Rental Housing Project, and all parties hereto shall undertake such other related actions as are necessary to create the related TIF District. (j) The City or the Authority shall issue conduit 501(c)(3) bonds and loan the net proceeds thereof to the Senior Housing Owner pursuant the terms of a loan agreement with the Senior Housing Owner and other necessary or desirable bond documents, for the purpose of financing the construction of the Senior Housing Project, and the Senior Housing Owner and the City or the Authority shall each undertake all necessary or desirable related actions. (k) The parties hereto shall enter into such other agreements as may be necessary or desirable, including but not limited to agreements pertaining to the use of HOME, CDBG, LCA, and MHOP funds. Section 3.2. Payment of Administrative Costs. The Developer agrees to pay all costs incurred by the City and the Authority in the preparation, review, and approval of this Agreement and any other agreement, resolution, financial calculation, engineering review, document, review, or process prepared or undertaken pursuant to or arising out of this Agreement (the "Administrative Costs"). Prior to or immediately upon the execution of this Agreement by the City and the Authority, the Developer shall pay to the Authority the amount of $10,000, such amount to be applied to Administrative Costs. The Developer shall further from time to time pay, or cause the Rental Housing Owner or the Senior Homing Owner, as the case may be, to pay, to the City and the Authority, within ten (10) days of request for such payment by the City or the Authority, any amount by which the Administrative Costs exceed $10,000 and for which the City or the Authority have not been previously reimbursed. The Developer acknowledges and agrees that time is of the essence with regard to this Section 3.2 and that the obligations of the City and the Authority hereunder are expressly contingent on the Developer's compliance with the terms of this Section 3.2. The provisions of this Section 3.2 shall survive termination of this Agreement. Section 3.3. Soil Conditions. The Developer acknowledges that neither the City nor the Authority make any representations or warranties as to the condition of the soils on the Property 10 DJG- 175166v5 CL205-11 Ken Anderson - fifth draft real estate equities preliminary development contract.doc Page ~11 J or any other parcel of land or its fitness for construction of the Minimum Improvements or any other purpose for which the Developer may make use of the Property or such parcel. The Developer further agrees that it will indemnify, defend, and hold harmless the City, and its governing body members, officers, and employees, from any claims or actions arising out of the presence, if any, of hazardous wastes or pollutants on the Property. The provisions of this Section 3.3 shall survive termination of this Agreement. Section 3.4. Necessity for Final Agreement; Relationship of Parties. (a) It is the intention of the parties to this Agreement that this Agreement be construed as an agreement to negotiate in good faith regarding the terms and conditions of one or more final agreements to be entered into by or among the parties and setting fgrth the complete understanding of the parties regarding the Minimum Improvements, the Planned Unit Development Agreement, and all other undertakings related to them; provided, however, that each party to this Agreement shall have the sole and absolute discretion to accept or reject any such final agreements on any terms such party deems desirable. (b) Notwithstanding anything to the contrary herein, if the City, the Authority, or both have not, by no later than June 30, 2001, entered into one or more Definitive Development Agreements with the Rental Housing Owner and the Senior Housing Owner that expressly supercede this Agreement, this Agreement shall automatically terminate. In addition to the foregoing, any party to this Agreement may at any time and for any reason or no mason immediately terminate this Agreement upon providing notice to the other parties as provided herein. (c) In no case, shall this Agreement be construed as creating any joint venture or partnership between the City or the Authority andany other person. 11 DiG- 178166v5 CL205-11 Ken Anderson - fifth draft real estate equities preliminary development Contract.doc Page 12 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements.. (a) The Developer will cause the Rental Housing Owner and the Senior Housing Owner to construct the Minimum Improvements on the Property in accordance with the Construction Plans. At all times prior to the Maturity Date, the Developer will cause the Rental Homing Owner and the Senior Housing Owner to operate and maintain, preserve, and keep the Minimum Improvements, or cause the Minimum Improvements to be maintained, preserved, and kept, with the appurtenances and every part and parcel thereof, in good repair and condition. Neither the City nor the Authority shall have any obligation to operate or maintain the Minimum Improvements. (b) The Developer will cause thc Rental Housing Owner and the Senior Housing Owner to construct the Minimum Improvements in accordance with all local, State, and federal energy-conservation laws or regulations. (c) The Developer will obtain, or came thc Rental Homing Owner and the Senior Housing Owner to obtain, in a timely manner, all required permits, licenses, and approvals, and will meet, in a timely manner, all requirements of all applicable local, State, and federal laws and regulations which are required to be obtained or met before the Minimum Improvements can be lawfully constructed, including, without limitation, the requirements of any necessary special use permits. (d) The Developer shall promptly advise thc City and the Authority, or came the Rental Homing Owner and the Senior Housing Owner to promptly advise the City and the Authority, in writing of all litigation or claims affecting any part of the Minimum Improvements and all written complaints and charges made by any governmental authority materially affecting the Minimum Improvements or materially affecting the Developer, the Rental Housing Owner, the Senior Housing Owner, or their businesses which may require changes in construction of the Minimum Improvements. Section 4.2. Construction Plans. (a) Before beginning construction of thc Minimum Improvements, the Developer shall submit, or cause the Rental Housing Owner and the Senior Housing Owner to submit, Construction Plans to the City and the Authority. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in conformity with the Bond Documents, this Agreement, the Planned Unit Development Agreement, the Definitive Development Agreements and all applicable State and local laws and regulations. The City and the Authority will approve the Construction Plans in writing if.' (i) the Construction Plans conform to the terms and conditions of this Agreement and the Planned Unit Development Agreement; (ii) the Construction Plans conform to the goals and objectives of the Development Plan; (iii) the Construction Plans conform to all applicable federal, state and local laws, ordinances, rules and regulations; (iv) the Construction Plans are adequate to provide for construction of the Minimum Improvements; (v) the Construction Plans do not provide for expenditures in excess of the funds available to the respective owner for construction of the 12 DJG-178166v5 CL205-11 I I Ken Anderson - fifth draft real estate equities preliminary development contract, doc P'age ~1,3,,~J Minimum Improvements; and (vi) no Event of Default has occurred. Approval may be based upon a review by the City's Building Official of the Construction Plans. No approval by the City or the Authority shall relieve the Developer, the Rental Housing Owner or the Senior Housing Owner of the obligation to comply with the terms of this Agreement, the Definitive Development Agreement to which any such person is a party, or of the Development Plan or of the Planned Unit Development Agreement, applicable federal, state and local laws, ordinances, rules and regulations, or to construct, the Minimum Improvements in accordance therewith. No approval by the City or the Authority shall constitute a waiver of an Event of Default hereunder or under the respective Definitive Development Agreement. If approval of the Construction Plans is requested by the Developer, the Rental Housing Owner or the Senior Housing Owner in writing at the time of submission, such Construction Plans shall be deemed approved unless rejected in writing by the City or the Authority, in whole or in part. Such rejections shall set forth in detail the reasons therefore, and shall be made within fourteen (14) days after the date of their receipt by the City and the Authority. If the City or the Authority rejects any Construction Plans in whole or in part, the Developer shall Submit or shall cause the Rental Housing Owner or the Senior Housing Owner to submit new or corrected Construction Plans within fourteen (14) days after written notification to the Developer of the rejection. The provisions of this Section relating to approval, rejection and resubmission of corrected Construction Plans shall continue to apply until the Construction Plans have been approved by the City and the Authority. Said approval shall constitute a conclusive determination that the Construction Plans (and the Minimum Improvements constructed in accordance with said plans) comply to the City's and the Authority's satisfaction with the provisions of this Agreement relating thereto. (b) If the Developer desires to make any material change in the Construction Plans after their approval by the City and the Authority, the Developer shall submit or shall cause the Rental Housing Owner or the Senior Housing Owner to submit the proposed change to the City and the Authority for their approval. If the Construction Plans, as modified by the proposed change, conform to the requirements of this Section 4.2 of this Agreement with respect to such previously approved Construction Plans, the City and the Authority shall approve the proposed change and notify the Developer in writing of its approval. Such change in the Construction Plans shall, in any event, be deemed approved by the City and the Authority unless rejected, in whole or in part, by written notice by the City or the Authority to the Developer or the submitting party, setting forth in detail the reasons therefor. Such rejection shall be made within ten (10) days after receipt of the notice of such change. Section 4.3. Commencement and Completion of Construction. The Developer shall complete or shall cause the Rental Housing Owner or the Senior Housing Owner to complete the construction of the Minimum Improvements within eighteen (18) months of the respective Closing Date. All work with respect to the Minimum Improvements to be constructed or provided by the Developer or the Rental Housing Owner or the Senior Housing Owner, as the case may be, on the Property shall be in conformity with the Construction Plans. Section 4.4. Certificate of Completion. (a) Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the respective Definitive Development Agreements relating solely to the obligations of the Developer, or the Rental Housing Owner or the Senior Housing Owner, as the case may be, to construct the Minimum 13 DJG- 178166v5 CL205-11 ..Ken A~derson - fifth draft real estate equities prelirni~a~,deve!oPme~t Co,traCt:doc page L Improvements (including the dates for beginning and completion thereof), the Authority will furnish the Developer and either the Rental Housing Owner or the Senior Housing Owner, as the case may be, with a certificate evidencing the conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement and the respective Definitive Development Agreements with respect to the obligations of the Developer, the Rental Housing Owner or the Senior Housing Owner, and their successors and assigns, to construct the Minimum Improvements and the dates for the beginning and completion thereof. Such certification and such determination shall not constitute evidence of compliance with or satisfaction of any obligation of the Developer, the Rental Housing Owner or the Senior Housing Owner to any Holder of a Mortgage, or any insurer of a Mortgage, securing money loaned to finance the Minimum Improvements, or any part thereof. (b) If the Authority shall refuse or fail to provide any certification in accordance with the provisions of this Section 4.4, the City shall, within thirty (30) days after written request by the Developer, the Rental Housing Owner or the Senior Housing Owner, provide the requesting party with a written statement, indicating in adequate detail in what respects the Developer or such other requesting party has failed to complete the Minimum Improvements in accordance with the provisions of this Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Authority, for the Developer or such other requesting party to take or perform in order to obtain such certification. (c) The construction of the Minimum Improvements shall be deemed to be substantially completed when the Developer or the Rental Housing Owner or the Senior Housing Owner, as the case may be, has received an occupying permit from the responsible inspecting authority for all residential units, common areas, and other portions of the Minimum Improvements. 14 DJG-178166v5 CL205-11 Ken Anderson, fifth draft real estate equities preliminary develoPment..C°n~traCt.doc Page ,15 J ARTICLE V Insurance 5.1. Insurance. (a) Upon commencement of construction and continuing until at least the Maturity Date, the Developer shall maintain, or cause to be maintained, at its cost and expense, and from time to time at the request of the Authority shall furnish proof of the payment of premiums on, insurance as follows: (i) Insurance against loss and/or damage to the Minimum Improvements under a policy or policies covering such risks as are ordinarily insured against by similar businesses; (ii) Comprehensive general public liability insurance, including personal injury liability (with employee exclusion deleted), against liability for injuries to persons and/or property, in the minimum amount for each occurrence and for each year of $1,000,000, and shall be endorsed to show the Authority as additional insured; and (iii) Such other insurance, including workers' compensation insurance respecting all employees of the Developer, or the owner of such Project, in such amount as is customarily carried by like organizations engaged in like activities of comparable size and liability exposure. (b) All insurance required in this Article V shall be taken out and maintained in responsible insurance companies selected by the Developer which are authorized under the laws of the State to assume the risks covered thereby. Upon request, the Developer will deposit or will cause the Rental Housing Owner or the Senior Housing Owner to deposit annually with the Authority policies evidencing all such insurance, or a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. Unless otherwise provided in this Article V of this Agreement, each policy shall contain a provision that the insurer shall not cancel nor modify it in such a way as to reduce the coverage provided below the amounts required herein without giving written notice to the City and the Authority at least thirty (30) days before the cancellation or modification becomes effective. In lieu of separate policies, the Developer may maintain or cause the Rental Housing Owner or the Senior Housing Owner to maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein, in which event the Developer shall deposit or shall cause the Rental Housing Owner or the Senior Housing Owner, as the case may be, to deposit with the Authority a certificate or certificates of the respective insurers as to the amount of coverage in force upon the Minimum Improvements. (d) Thc Developer agrees to notify, or cause the Rental Housing Owner or thc Senior Housing Owner, as the case may be, to notify the Authority immediately in the case of damage exceeding $100,000 in amount to, or destruction of, the Minimum Improvements, or any portion thereof resulting from fire or other casualty. In such event the Developer will forthwith repair, reconstruct, and restore, or cause the Rental Housing Owner or the Senior Housing Owner to 15 DIG- 178166v5 CL205-11 i.Ken A~d.erson - fifth draft real estate equities preliminary deVel°pment c0nt[ac[d0c ' ' page 16 repair, reconstruct, and restore, the Minimum Improvements to substantially the same or an improved condition or value as it existed prior to the event causing such damage and, to the extent necessary to accomplish such repair, reconstruction, and restoration, the Developer will apply, or will cause the Rental Housing Owner or the Senior Housing Owner, as the case may be, to apply, the net proceeds of any insurance relating to such damage received to the payment or reimbursement of the costs thereof. The Developer shall complete, or cause the Rental Housing Owner or the Senior Housing Owner, to complete, the repair, reconstruction, and restoration of the Minimum Improvements, whether or not the net proceeds of insurance received by any such party for such purposes are sufficient to pay for the same. Any net proceeds remaining after completion of such repairs, construction and restoration shall be the property of primary insured party. (e) 'The parties hereto agree that all of the provisions set forth in this Article V shall terminate upon the Maturity Date. 16 DJG- 178166v5 CL205-11 I IKen Anderson- fifth draft real estate equities Preliminary develOPment contract doC ,, P;age-17~ ARTICLE VI Use of Tax Increment Section 6.1. Use of Tax Increments. Except for their obligations under this Agreement, the Senior Housing Note, and the Rental Housing Note regarding Tax Increment, the Authority and the City shall be free to use any Tax Increment received from the Property for any purpose for which such Tax Increment may lawfully be used, and neither the Authority nor the City shall have any obligation to the Developer, the Rental Housing Owner or the Senior Housing Owner with respect to the use of such Tax Increment. 17 DJG- 178166v5 CL205-11 L Ker~/~,nderson - fifth draft real estate equities preliminary development COntract.doc Page ARTICLE VII Financine Section 7.1. Mortgage Financing. (a) Before commencement of construction of the Minimum Improvements, the Developer shall submit, or shall cause the Rental Housing Owner or the Senior Housing Owner to submit, to the City and the Authority evidence of one or more commitments or definitive agreements providing for mortgage financing which, together with committed equity for such construction, is sufficient for the acquisition of the Property, platting, construction of the public improvements in connection with the plat, and undertaking the Minimum Improvements. Such commitments may be submitted as short term financing, long term mortgage financing, a bridge loan with a long term take-out financing commitment, or any combination of the foregoing. Such commitment or commitments for short term or long term mortgage financing shall be subject only to such conditions as are normal and customary in the mortgage banking industry. (b) If the City and the Authority find that the mortgage financing is sufficiently committed and adequate in amount to provide for the construction of the Minimum Improvements then the City and the Authority shall notify the Developer in writing of its approval. Such approval shall not be unreasonably withheld and either approval or rejection shall be given within thirty (30) days from the date when the City and the Authority are provided the evidence of mortgage financing. A failure by the City or the Authority to respond to such evidence of mortgage financing shall be deemed to constitute an approval hereunder. If the City or the Authority reject the evidence of mortgage financing as inadequate, they shall do so in writing specifying the basis for the rejection. In any event the Developer shall submit adequate evidence of mortgage financing within thirty (30) days after such rejection. Section 7.2. Option to Cure Default on Mortgage. In the event that there occurs a default under any Mortgage authorized pursuant to this Agreement, the Developer shall cause the City and the Authority to receive copies of any notice of default received by the Developer from the holder of such Mortgage. Thereafter, the City and the Authority shall have the fight, but not the obligation, to cure any such default on behalf of the Developer within such cure periods as are available to the Developer or the Rental Housing Owner or the Senior Housing Owner, as the case may be, under the Mortgage documents. 18 DJG- 178166v5 CL205-11 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: September ! 9, 2000 AGENDA SECTION: Item for Consideration- ORIGINATING EXECUTIVE Other Business DEPARTMENT: EDA DIRECTOR NO: C~ _ ¢ _ ~ FI ~, APPROVAL ITEM: Work for Housing TIF Study (Transition BY: Kenneth Anderson ~ BY: Block) DATE: September 14, 2000 BACKGROUND: The City of Columbia Heights and the Columbia Heights Economic Development Authority have been working with Spfingsted, Inc. as their financial advisor for over two years. In this capacity they perform various services related to the issuance of bonds, Tax Increment Financing District Analysis and preparation, and other financial advisory services. At previous EDA Board meetings, it was deemed to be necessary to pursue an in-depth financial analysis and cash flow presentation for the proposed NEI Transition Block Project. A number of meetings were also necessary to discuss specific project related issues with the developer as well as City staff. Staffhas received the first billing for this work in the amount of $7,552.46. This is the total billing amount for work performed from March 2, 2000 through June 30, 2000. Attached is a copy of the invoice dated August 8, 2000. These expenses will be reimbursed by the developer upon approval of the Preliminary Development Agreement. RECOMMENDATION: Staff is recommending EDA Board authorization to approve expenditures of up to $9,750 for financial advisory services related to the Transition Block Housing TIF study. Furthermore, staff is requesting Board authorization to allocate an addition $5,000 for preparation of the TIF plan for Tax Increment Financing District number 9 in the total amount not to exceed $5,000. RECOMMENDED MOTION: Move to authorize expenditures to Springsted, Inc. up to $9~750 for the Transition Block Redevelopment Block Housing TIF Study and up to $5,000 for preparation of the TIF Plan for TIF District number 9 with payment from the EDA Fund 204; and furthermore, to authorize the President and Executive Director to process payments as necessary. Attachments EDA ACTION: \Transition Block\Springsted Payment 85 SEVENTH PLACE EAST, SUITE 100 SAINT PAUL, MN 55101-2887 651-223-3000 FAX: 651-223-3002 August 8, 2000 Mr. William Elrite, Finance Director City of Columbia Heights 590 40th Avenue Northeast Columbia Heights MN 55421-3878 Project No: C0269.O1 Invoice No: 0000001 SPRINGSTED Public Finance Advisors For Financial Advisory Services Performed from March 2, 2000 through June 30, 2000 Re: Housing TIF Study - ~z'ess :B-i].li~c~ Professional Personnel: Client Representatives Other Officer/Project Manager Support Staff Subtotal: (10.5 @ $125/hr.) 1,312.50 (51.5 @ $115/hr.) 5,922.50 (4 @ $40/hr.) 160.00 7,395.00 Miscellaneous: Travel 151.46 Copies, Delivery & Fax 6.00 TOTALDUE $7,552.46 rrect~ I declare under penalty of law that this account is just and co that no part of it has.,bejen paid. .~INGSTED i~,corpg~ed /./ BONNIE C. MAT}ON Payment is due on receipt o[ this billing. After 30 days interest will be cha~ed on any balance at a rate of 1% per month. SAINT PAUL, MN MINNEAPOLIS. MN MILWAUKEE,WI · OVERLAND PARK. KS WASHINGTON. DC DES MO[NES, lA COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meetin )tember 19 2000 AGENDA SECTION: Other Business ORIGINATING EXECUTIVE NO: 9-C-3 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Section 8 Report BY: Ken Anderson ta~' DATE: September 12, BACKGROUND: Attached is the Section 8 Report which details all Section 8 participants leased up through September 1, 2000. The Columbia Heights EDA was issued an allocation of 25 Vouchers and 25 Certificates. Of those, we have issued 30 Vouchers and 3 Certificates for a total of 33 which is a decrease of three from last month. This decreases our utilization to 85 percent. 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 with their findings 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. Staffheld a meeting with Metro HRA staff on Thursday, September 7, 2000, to discuss the transition of our program. It is currently anticipated that the last housing assistance payments to be made by the EDA/HRA will be for October 1, 2000 payments. After that time, the Section 8 administration will be performed by Metro HRA slur. As of this writing, participant files have been reviewed and updated with re-certification dates. zefore, these files are ready to be transferred to the Metro HRA. ANALYSIS: The number of port-outs for August, 2000 is. at six (6). This is an increase of one fi-om last month. Of the six (6), five (5) 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 administrative fee. The number of portability units is a reduction of seven(7) from last month. We currently administer a total of 66 portability Vouchers and Certificates. This breaks down into 55 Vouchers and 11 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: Move to receive the Section 8 report as written. Attachments EDA ACTION: h:' ent\9-19-2OOOsectionS.wpd Section 8 Monthly Report Participants Leased-Up Effective September 1, 2000 Section 8 - Columbia Heights Bedroom Size No. of Certificates No. of Vouchers Total 0 0 0 0 1 0 0 0 2 3 17 20 3 0 13 13 4 0 0 0 Total 3 30 33 Total Admin. Fees $159.75 $1,597.50 $1,757.25 ($53.25) Section 8 - Port Ins Bedroom Size No. of Certificates No. of Vouchers Total 0 0 1 1 1 4 26 30 2 4 18 22 3 2 10 12 4 1 0 1 Total 11 55 66 Admin. Fee ($39.76) $437.86 $2,186.80 $2,624.16 Total Admin. Fee's $437.86 $2,186.80 $2,624.16 Section 8 Monthly Report September 2000 Page 2 Port Outs Bedroom Size No. of Certificates No. of Vouchers Total 0 0 0 0 1 0 1 1 2 0 3 3 3 1 1 2 4 0 0 0 Total 1 5 6 Total Admin. Fees $10.65 $53.25 $63.90 ($10.65) G:\Section 8~SectionSmonthlyreport forSeptember2000.wpd COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: September 19, 2000 AGENDA SECTION: Other Business ORIGINATING EXECUTIVE NO: c.f _ C -/4 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: MI-IFA Loan Status Report BY: Kenneth Anderson BY: DATE: September 13, 2000 BACKGROUND: At the August EDA meeting it was requested that staff comprise an accurate listing of all of the MHFA Loans processed over $5,000 and their status. Staff has prepared the attached list for review by the Economic Development Authority Commissioners. The report shows all loans over $5,000 that we are required by MHFA to file Mortgages and Assignment of Mortgages with Anoka County. We have listed the Assignment of Mortgage number from Anoka County, amount of the loan, loan date, and name and address of recipient. For two of the Mortgage Loans listed we have recently worked on their problems due to never being filed with Anoka County and staff has attached the most recent paperwork related to each case. Two other Mortgages were just recently corrected and hand delivered to the Anoka County Auditors office on September 7, 2000. It will take approximately one month to receive a copy of the Assignment of Mortgage with the filing number stamped on it from Anoka County. Both of these loans were dated June 21, 1999. When the Assignment of Mortgage papers are received, then staff will take the final step in the loan process by sending a photo copy to MHFA for their loan files. Staffhas also included a report of all of the loan payments that the Community Development Department receives on a monthly basis. These receipts consist of Business Revolving Loans, Mortgage Loans, a Section 8 Special Repayment Agreement Loan, a Garage Rental Payment for 3913 Polk Street, and a Sheffield Loan. Please note that this information is presented to the EDA Board for informational purposes only. EDA ACTION: H: \Consent\MHFA-Loans Report MHFA LOANS FILED WITH ANOKA COUNTY OVER $5,000 ASSIGNMENT OF MORTGAGE # FROM ANOKA COUNTY AMOUNT OF LOAN LOAN DATE 915848 $13,000.00 10-15-90 NAME AND ADDRESS Longpre, Howard, 3931 Jackson Street N.E. 208005 $ 7,000.00 4-29-91 BrOwn, James S., 4301 Tyler St. N.E. 924446 $17,810.00 2-25-91 Vermeer, John & Sharon, 615 40~ Avenue N.E. 1192435 $9,475.00 10-30-95 Jacobson, Diane, 4244 Stinson Blvd. N.E. Never Filed $6,527.16 12-12-97 Gafkjen, Shemey V., 4032 Madison St. N.E. (See Attached- Request loan forgiveness by MHFA on the amount of $4,727.80; 8/25/2000) 1309797 $6,021.00 10-30-97 Martin, Eileen H., 4120 5th St. N.E. 299845 $6,180.00 8-4-97 Warhol, Penny J., 4421 Main Street N.E. 1367110 $8,000.00 6-22-98 1367112 $6,570.00 7-27-98 1381125 $7,336.00 10-13-98 317221 $5,237.00 5-5-98 1357379 $7,530.00 5-11-98 1343913 $17,663.00 4-27-98 1343911 $8,000.00 4-27-98 325484 $9,581.00 7-23-98 Aasen, Michael Richard, 1309 Lincoln Terrace Camel, Linda, 4603 University Avenue N.E. Camel, Linda, 4603 University Avenue N.E. Dahl, Beverly J. & Wachsmuth, Robert, 2217 Maiden Lane Halvorson, Virginia, 4440 2na Street N.E. Haug, Elaine M., 1124 44th Avenue N.E. Hoskin, Richard & Janet, 3853 Van Buren Street Naegele, Patricia, 5147 7th Street N.E. Never Filed $18,054.00 (See Attached-Paid in full) 9-7-00 to County $14,155.00 9-7-00 to County $ 6,590.00 4-13-99 6-21-99 6-21-99 Jensen, Stephen Ray, 4423 N.E. 6th Street McCormick, Randy, 4346 Jefferson St. N.E. Watson, Patficia, 4042 7th Street N.E. LOANS CURRENTLY PAID TO COMMUNITY DEVELOPMENT DEPARTMENT Business Revolving Loan Payments Bamick, Robert & Priscilla F.C. Celtic, LLC Midwest Conversion Jonak, Steven & Katherine Business Metro Assemblies F.C. Celtic, LLC Midwest Conversion 533 372 Avenue N.E. Morteage Loan Payment Chartraw, Linda Nielsen, Karen Address 4639 Upland Crest N.E. 4508 Polk Street N.E. Amount Due To Date Payoff Date $15,090.96 2-1-2006 $12,301.82 2-23-2003 $3,709.27 4-18-2001 $6,543.91 10-15-2003 Amount Due To Date Payoff Date $21,759.86 5-1-2009 $19,938.14 11-2-2001 Section 8 Special Repayment Agreement Loan Hagen, Duane .Address 4545 Fillmore Street NE Gm ..~_e Rental Payment Nelson, Lawrence and Alice J. Address 3923 Polk St. N.E. Amount Due To Date Payoff Date $440.74 4-5-2001 Amount Payed $35.00/Month Sheffield Loan Payment Warrick, John S. & Mary C. Address 4636 Fillmore St. N.E. Amount Due To Date Payoff Date 2,457.61 5-1-2005 H:~oansXMHFA Loan Report for EDA COMMUNITY DEVELOPMENT DATE: May 15, 2000 TO: FROM: RE: William Elrite, Finance Director mu._)/~ Kenneth R. Anderson, Community Development Director Payment received for Mid Block Light Assessment and MHFA Loan principal repayment. I am enclosing for your attention two checks received from First Republic Title LLC for property at 4423 6~' Street NE., PIN # 35-30-24-21-0019. Check number 12017 dated May 12, 2000 is for payment of a Minnesota Fix-Up Fund originated by the Columbia Heights Economic Develop- ment Authority in the amount of $18,054.00. This loan has not been submitted to the NfHFA for reimbursement as certain documents were insufficient to be submitted to MI-IFA for reimbursement. I've been working with the property owner to obtain the necessary documents. However, since the loan was originated the property owner has elected to sell the property and the closing company requested they pay off the amount at the closing of May 12, 2000. I informed them on that date the payoff amount would be the principal amount of the loan in the amount of $18,054.00. Please find the attached check for this amount for pa_wnent in full. We have also attached a rec~t for this amount. The remaining check #12013 payable in the amount of$11.20 is for a mid block light assessment. Please let me know if you have any questions on this matter by contacting me at extension 672. c: Loan Fili Day File Attachments H:\Loans\4423 6a St-Stephen Jcnsen First Republic Title, LLC $00 Ford Road · Suite 200 St. Louis Park. MN 55426 Telephone (612) 546-0060 Fax (612) 546-3411 At~: Co~/CJ~ Assessors Office Enclosedis~payrnent f'or~/[t[') ~l(~..-UO~assessments, in the amount of $ [ I .7__d~) - For the prol:~rty des'cribed below. Property Address: Own r( ): If you have any questions, please contact our office directly at the number listed above~ ~a~cD~nald, First Republic Title, LLC R,VERS,D ..~. 12 017 Escrow Account BLOOMINGTON, MN NUMBER 500 Ford Road · Suite 200 Telephone (812) 546-0060 St. Louis Pank, MN 55426 Fax (S,2)S4S-3~, ~'~-~[~307 May 12, 2000 $18,054.00 Eighteen Thousand Fifty Four Dollars and no/100ths ~____~AT~ ~ ~OU_~NE__ City of C~'tumbia Heights F00-10307 May 12, 2000 $18,054.00 City. of Columbia Heights Payoff ofr Stephen R. Jensen SF4001-! TO REOROER, CALL YOUR LOCAL SAFEGUARD DISTRIBUTOR AT 612-~24-3470 GGYBR~0010~ CITY OF COLUMBIA HEIGHTS ~"r"'-qO 40TH AVENUE N.E., COLUMBIA HEIGHTS, MN $5.42. !-3878 (6 ! 2) 782-2800 TDD 782-2806 ~ - PLEASE NOTE: CITY HALL PHONE NUMBERS HAVE CHANGED. NEW NUMBERS ARE: MAIN NUMBER (763)706-3600; TDD (763)706-3691 Mayor: Gary L. Peterson Counciimembers: Donald G. Jolly Marlaine Szurek Julierme Wyckoff 1ohn Hunter City Manager: Walter R. Fehst COMMUNITY DEVELOPMENT August 25, 2000 Hall H. Rossi Portfolio Management/Quality Control Minnesota Housing Finance Agency 400 Sibley Street, Suite 300 St. Paul, MN 55101 Re: ~l~'~ey and~flierme~a~j ew MHFA Home Improvement Loan 1103055 Dear Mr. Rossi: Thank you for your letter of August 11, 2000 with the payoff amount on the above referenced loan as of August 15, 2000. This item was brought to the Columbia Heigttts Economic Develop- ment Authority at the meeting which was held on Wednesday, August 16, 2000. The Board of Commissioners discussed the facts and history surrounding this defaulted loan. Staff submitted a recommendation to make payment for the unpaid balance of $4,377.80 as of the August 15, 2000 proposed date for payoff. Staff also recommended payment of $350.00 to MHFA for reimbursement of the loan origination fee. Finally, they recommended the Board authorize staff to further pursue repayment through the Conciliation Court process as recommended by the EDA legal counsel. Our Deputy Executive Director, Kenneth R. Anderson, had indicated in his verbal comments that it may be possible for the EDA to request a forgiveness for some or all of the outstanding balance due. He also indicated that in his conversation with you, it was your recommendation that the EDA make repayment in full of the referenced amount. I am writing to request your agencies approval to forgive the total payoff amount of $4,377.80 including the daily per diem accruing at the rate of $ .66per day and the loan origination fee of $350.00. We base this request for forgiveness on a couple of important facts. First, your agency periodically mails notices of loan commitments in which the Mortgage and/or Assi~m'tment of Mortgage have yet to be submitted to you' after being recorded at Anoka County. We have attached copies of several of these notices which make no reference to the loan issued to Sherney and Catherine Gafkjen. Had we received notification that the in/brmation had not yet been submitted to the MHFA, steps could have been taken to insure said documents were properly processed as required. Secondly, during this time period, we experienced a change in staff for two positions related to this program which may have led to a failure to properly follow-up on this loan documentation. Third, since you notified us of this default, we have made repeated and earnest attempts to seek repayment from Mr. Gafkjen through our staff and our legal counsel - all to no avail (copies attached). This demon- strates a strong and good faith effort on our part to take all means necessary to recover these costs. THE CITY OF COt..UMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABIL. ITY IN EMPLOYMENT OR THE PROVISION OF SERVICES I Hall H. Rossi August 25, 2000 Page 2 of 2 Our staff is in the process of working jointly with the Anoka County Recorders office to insure the remaining loan files which are required to be recorded are completed as necessary. Our staff has met in person with the Anoka County Recorders Office to clarify the reasons for these outstanding documents not being processed appropriately. In one case, it will be necessary for us to re-execute the Mortgage and Assignment of Mortgage because the County has no record of these documents being received. For the remaining three files, this information will be for- warded very soon. Again, please consider our request to forgive the remaining pay off amount as of August 15, 2000 of $4,727.80. Your thoughtful and favorable consideration of this request is greatly appreciated. Respectfully submitted, President Attachments C~ Walt Felast~ Executive Director Kenneth R. Anderson, Deputy Executive Director Daniel Greensweig, Kennedy and Graven, Chartered EDA Commissioners Day ftc H:\loans\Gafkjen-MI-IFA Letter MINNESOTA HOUSING FINANCE AGENCY {~002 August I 1, 20(30 M~'. Een Anderson Columbia Heights Economic Development Au~ority 590 40 Columbia Heights, ~. 5~21 " RECEIVED · ,?,OMtvlUNITy OEVELOPMEtV'I R~: Shemey And C.~heri~c Ga~jen MHFA Hom~ improvement loan 1103055 Dear Mr. Anderson: Per our tclcphone conversation this morning, ~¢ pay-off on r. his loan as of August 15, 2000 is as follows: Pay-off as of 8/15/2000 54,377.80 Loan ofiginaxion Fee +$ 350.00 Total pay-off $4,727.80 .. Daily Per Diem after 8/15/2000 is $ .66. Thc pay-offchcck should be mailed to Compu-Link Loan Service, Inc. attention Ms. Tamara Cook, Compu-Link Loan Servic,.% Inc., 3900 Capital Cji7 Blvd. Lansing, MI. 48906. Thc $350.00 loan fee should be mailed to my attention ar Minnesota Housing ~na~ce Agency (MIdi:A). If you have any questions, please call me at 651-296-8835. Sincerely, Portfolio Managen~e. n~/Qualit'y Conu'ol CC: Tamara Cook, Compu-Link'Loan Service, Inc. 4C0 Sih~--y SD'met, S~e 200, St. Paul, Minnesota 55101 (651) 2S6-7608 Telecommunications Device for the Deaf (TDD) (651) 297-2361 Equal C)ppo~ H(x.~ng and £quaJ Oppcrtunity IEmp~c~ymen! 08-03-,]0 IZ:43 T-Gg8 P.~3/05 F-ZZS June 1, 2000 .~hemey V. Ga/kjen 105 Court Avenue South Sandstone, Minnesota 55072 Re: Columbia Heights Economic Development Authority Loan Dear Mr. C_raf~kcn: The Columbia Heights Economic DevelOpment Authority has asked us to conf~cT you regarding the amount it is owed on the home improvement loan you r~eived in I997. While I' ~dcrstand that you intended that th~ loan be repaid from proceeds at' thc sale of your home, you are personally responsible for thc amount due as a signer on thc note. I must there/om request that you send us thc amount duc, $4,255.96 plus 88~ for each day bet'ween February I 1, 2000 to the date of payment. Failure m m_-,~ payment as required will leave the Economic Development Authority with no choice but to consider its full range of legal options. I.f you have any questions, please contact me. D~nielFL Gr¢cnsw~'~ ff D/G:par ~ This is-an attempt to collect a debt and any information obtained will he used for that purpose. '~Unless you notify this office within 30 days after receiving this not/cc that you dispute the '.validity of this debt or any.portion thereof, this office will assume this debt ts valid. If you notify thit office in writing within 30 days of receiving thi~ natice~ this office 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 reqnest this office in writing within 30 days alter receiving this notice, thi~ office will provide you with the name -,nd address of the original creditor, if different from the current creditor. DJG-I$i326~,I CLIO$.I I Ame lgth, 2000 D~ar Danicl .L This ferry' is in response to thc Ichor re!q, ues~;n~ immediarc paymcra of'thc improvemczg loan #1103055. I'~ should have bccn takca ca.~ o£by the W'alsh company ~xi ra~ Miaugsota F'tnmu-~ Agency. The ~;,,nce or'thc lorn paynz-nt w~ suppos~ ;o be takm~ i:-~.~.~-cliately fi.Om the sale of'r~ lmuse be.Core the rmaney was divided according to thc will of,Mm Ga.fkjea. Thoraa~ I. Hara, attorney for Cathy Cratkjcn and daughter Bonnie Coz,,om, lmew r. Ms at tl~ £im~ ofthc ~ and did nothing about it. I p~[ mr 113 share ofr.~ loan back in ]azmary of'99. Mrs. Conom has decided mt to pay her share since th~ ham is nnt ia her name, bu~ ii was s~arod ia the will of how it should bc paid. I have repcaxcdly tricd to gct Mrs. Conom to pay and have becn unsucccssfid. Itbel ~hat ir is your duty to collect ~ unpaid ~!~,,~e fi.om,Mrs. Conom. f-Icr address is: Randall and Bonita Conom 310 Ols~n Ct. Bazavia, 1L 60510 (630)761-6557 Sinccr¢Iy, Slx-mc,/V. Gaik~ 200 Su~,t~ S;~m ~'c,'~c (&l 2J ]5~-~500 DA~I£L J. GR£g.~SW~G ~rec~ Dml (612) 337-9231 July 7, 2000 Shemey V. G~jm 105 Court Avenue South Sandstone, Minnesota 55072 Re: Columbia Heigh~ Econom/c Development ~Luthoriry Loan Dear Mr. Ga/kjen: Thank you for your letter in response to our reques~ for payment ofyour home improvemem Ioan owed to the Columbia Heights Economic Developmeaz Authority. While I understand your belief' that Ms. Conom is re~pons/.ble for thc debt, thc loan is in your name and ~e .Economic Development Authority must therefore look to you for payment. Any contribution from her is an issue that you must work out between the two ofyoa. in the mea~me, I must reiterate our demand for payment of thc loan. As you will recall, the amount due is $4,255.96, plus 56tt for each day bet"ween February I 1, 2000 to the date of payment. The Economic Developnumt Author/ty w/ii appreciate your immed./ate attention to this matter. If you have any questions, please con[a~z me. Very truly yours ThL~ is an attempt to collect a debt and any information obtained will be used for that 'purpose. CL.2uS-i t MINNESOTA HOUSING FINANCE AGENCY January 26, 1999 Nh'. Ken Anderson Columbia Heights Economic Development A,u,,thority 590 40th Ave ~ . Columbia Heights, ~ 55421 RE: Shemey and Catherine Gafkjen MI-IFA Home Improvement Loan 1103055 Dear Mr. Anderson: The above-referenced loan was ori~nated by your Agency in December 12, 1997 and assigned to the Minnesota Housing Finance Agency (MI-IFA) Catherine Gafkjen is deceased and Shemey Gafkjen sold the property in October 1998. Sherney 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 back~ound, after the property was sold in October 1998, the loan went into default. This loan was underwritten by your Agency and purchased by MI-IFA 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 principal 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 assi~ment 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 Sibtey Street. Suite 3C0, St. Paul, Minnesota 55101 (651) 296-7608 Telecommunications Device for the Deal' (TDO) (651) 297-2361 Page 2 ._Account Number Pay-off a~ of 2/l 1/2000 Daily Per Diem 1103055 $4,255.96 .. + $ 350.00 (loan obi~nation fee) $ .66 $4,605.96 ,,, The check should be made payable to Compu-Link 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 Un. recorded Mortgage and Assignment Of Mortgage FOR. VALUA~L~ CONSrDF-RATION, :~a ~ei=hts E¢=ncm/c Deve!c=men= Authcrit-~ ASSIGNOR : and the Co mh~ ' _ ' -- - a corporation un --~-~ * ' - -~cnarzt¥, a Oubl~-- ,--~: ~VZortga~or * 'J* ' to them ~ ~-"~'.';'.*~_uerat~o-o/~ae.~urnof Six Thousan~ .I ' .*~ do es ~ -Aereby Gran~ ~a · ~orevec all tat tract -~ .rgat~ Sel~ and Conu ...... ~ _, .e receipt WAereof i~ - ..~oy acknowledge~ Lots 7 and 8 Block 56, ~ol~bia Heights Annex to Minneapolis; " Subj to Ease of Rec. " ; *~ ' /-~ To Have and to Hold the Same, TogeLher wlt. b t. be bared] ' :be eaJd mortgagee. J~a ~ucceaaora and ' hake, ed~nia~aLore ........ a~eSgae,/cravat. An *~ ..... tamanta and ann~* ...... Gee ~ama are free r- ..... ~,.--muy aeJzad ofa~d ..... 3/.- cae a~d mortza~M ,.- ~ ..om azrmcumbrance. ~-,,mae, and ha ve ~ _:~. ~-, ~a aucca~ora and aesir. ~ha~ ~Se mor~Eagee, i~a ~ucceaaora an ~ '~ "' . W~an~ and Defend Ch *~., ..... d a.a~:e~a]l quieUy anjo a ~ ' · ' '''~ Prodded Neve~bele.., Thati[~ha ' sam a ahaU a t · ee~d mortgagor · ....ue~ore sP~fflcally ezcap~d- ~"~ "" ~n P ~ oamdmort a · ~ ~he~ ~ 7 ~" ~u~:ars and ~=~'~raaa~s, Ulea ...... ~ne~s, adm~a,--. accor~ng to [he terms of .... :22'::::~ and rive Hun~--a '"' .:~ ~ Principal promissory not~~~' ' ~ of av~ da~a herewith ' due and payab]e, . .together with interest as called for in '=aid n~ .~:.. 'i ." · .. ;~ ..~:. .:.!... :~ -~~~~. ,. , ,,..., . ezecuted ~y ~he a?d mortgagors, and payable ~o eaid mortgage, at ~ndaha~repa toe' _ ~~ .., fica~40~h Avenue ~,. ~;::. - · . p~a-J--, .... agar. ~ ......... ND THE MORTGAge- ga~r a ez~,~ a~men:a h~ ~.,.~-_J ~'~; / April 10, 2000 Dear 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 balanc~ of the Ioan'payment was ~ppos~ to be taken immediately from the sale of the hous~ before the money wa~ divided according to the will of Mrs. Ga/kjen. Thomas I. Hara, attorney for Cathy Gaflcjen 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 .~anuary of'99. Mrs. Conom has decided not to pay her share since the loan is not in her name, but it was rated 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 from Mrs. Conom. Her address is: Randall and Bonita Conom 3 I00lson Ct. Batavia, IL 60510 (630)761-6557 : CITY OFt'COLUMBIA HEiGm ,.. ~SE NOTE: C;TY HALL PH~E ~8ERS HAVE C~NGEO ~8ERS ARE: ~[N ~SER March 30, 2000 ECONO[VIIC DE'V'EL OPt'VfE~NT AUTttORITY (EDA) OonaL~ :. g~LL¥ ~arLat~e ~Lie~ne Jo~n Shemey V. 105 Court Avenue South Sandstone, ~'vk-xr 55072 Re: Loan Number 1103055 Dear Mr. Ga.~kjen: [ am writing to request your ~mmediate assistance to make payment for the mortgage orighaated througja the Columbia Hei~iats Economic Development Authority itt December of 1997, Loan Number 1103055. I was sorry to learn recently of your wife passing away and as a result, that you had soId your house on October 3 I, 1998. As you know, my purpose in writing is to request payraent for an unpaid balance on the above referenced Ioan in ~e following amount: Payoffas of~l I120'00 is: Additional daily per diem at $ .66: Payoffas of 4/3/2000, Total Amount Due $4,255.96 $ 3~t.32 $4,290.28 A cashiers check in the amount of $4,290.28 should be made payable to the Columbia HeiSts Economic Development Authority. For every day past April 3, 2000, you must add $ .66 ~or interest charges to the amount listed. You may send the cashiers check to my attention at 590 40a' Avenue NE, Columbia Heig&ts, Nk%' 554.2I. ]Zyou have questions regarding this matter you may cot/tact me at 763-706-3672. We will make payment directly to Compu-Link Loan Sea'ice, 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 payrneat of the full amount due at the time of the sale of your hor~e. I understand from co. rrespondence from the Mirmesota Housing Finn.ncc Agency that you stated approximately of the house sale proceeds were received by your wife's daughter, Bonnie Conom. Based upon tkis information, perhaps it Would be possible for you to be reimbursed by her for the remaiNne unpaid mortgage amount due to the Columbia Heights Economic Develo~ment Authority. If there is anDvay I cart be of any assistance in this matter, be sure to contact me at your earliest convenience. Ill; do not receive payment from you by Friday, April 7, 2000, unfortunately r will need to refer this matter to our art°racy to pursue further action. Shcmey V. GaOcjen March 30, 2000 Page '2 of 2 Thank you in advance for your understanding and a[~en~ion to reis ma~er as soon as possible. Yours v. ' ,- "? B;~nneth R.. Anderson ... Deputy Executive Director Enclosures: Loan Number Randy and Bonn/e Conom [-h~li~n~f. om~ #t [030$$.WI~D MINNESOTA HOUSING FINANCE AGENCY December 28,1999 Jennifer Bergman Columbia Heights Economic Development Au - 590 40th Ay NE Columbia Heights 55421 Re: Borrower ~Dahl ~McCormic~ r .v~Naegele ~/Watson Note Date 05-05-1998 05-05-1998 06-%1-1999 ~ 06-21-1999-- 07-23-1998 07-23-1998 02-09-1998 02-09-1998 T~oan Number Document 00001105225 00001105225 00001111569 00001111569 00001106997 00001106997 00001107911 00001107911 Assignment Mortgage Assignment Mortgage -- Assignment Mortgage Assignment Mortgage Our records indicate that the recorded documents itemized above have not been received for the referenced loans purchased from your organization. Because adequate time to record and submit these documents has now elapsed, we request your prompt submission of the itemized documents. If you have record of sending the documents to us on an earlier date, please inform us of that fact in writing, along with copies of the recorded documents. Please include a copy of this letter with your submission, and address it to me at the address below. We would appreciate your response to this correspondence by no later than January 27,2000. If we can assist you with any questions, please call me at 651-296-8840. Sue Walker Home Improvement Loan Programs 00 Sibley Street, Suite 300, St. Paul, Minnesota 55101 (651) 296-8215 Telecopier (651) 296-8292 qual Opportunity Housing and Equal Opportunity Employment MINNESOTA HOUSING FINANCE AGENCY September 18, 2000 Mr. Robert Ruettimann City Of Columbia Heights 590 40th Avenue N. E. Columbia Heights, MN. 55421-3878 RE: Shemey And Catherine (Deceased) Gafkjen MHFA Home Improvement Loan 1103055 Dear Mr. Ruettimann: Minnesota Housing Finance Agency (MHFA) received your August 25, 2000 on September 5, 2000 requesting forgiveness of the remaining amount of the above- referenced loan. This is a written response to your request. MHFA is requiring Columbia Heights Economic Development Authority to repumhase this loan/mortgage because: 1) Columbia Heights Economic Development Authority violated the Note Submission Voucher/Certifications dated December 17, 1997, the 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 principal amount of the loan is in excess of $5,000.00." 2) MHFA's periodic notices of loan commitments in which the mortgage/assign- ments of mortgages have not been received are strictly a courtesy or reminder provided by MHFA and not a requirement that the notices be sent. The only remedy of this situation is to have Columbia Heights Economic Development Authority pay the remainder of this loan off. Since the property was sold to a bonafide purchaser, the mortgage and assignment of mortgage cannot now be recorded against the property. 400 Sibley Street, Suite 300, St. Paul, Minnesota 55101 (651) 296-7608 Telecommunications Device for the Deaf (TDD) (651) 297-2361 Equal Opportunity Housing and Equal Opportunity Employment I Page 2 Therefore, please forward to Compu-Link Loan Servicer, Inc., our loan servicer of this loan, within 14 days of this letter, the loan pay-off and return of the loan origination fee as follows: Account Number Pay-off as of 10/3/00 Daily Per Diem 1103055 $4,409.92 +$ 350.00(loanoriginationfee) $4,759.92 $ .66 The check should be made out to Compu-Link Loan Service, Inc. and sent to Ms. Jennifer Heightchow, 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, Portfolio Management/Quality Control CC: Jennifer Heightchow, Compu-Link Loan Service, Inc. I I NEWS Minnesota Homes MCPP 2000 M~ HOUSING FINANCE AGENCY August 25, 2000 As of August 23, 2000, $2,299,999 remained of the odginal $29,948,470 released April 20th to fund the Minnesota City Participation Program (MCPP). The attached usage report provides details on individual participant usage. As of the date of this mailing, the following cities have exhausted their allocation: Albert Lea City of Anoka Anoka County Becker County Blue Earth County Chippewa County Chisago County Clearwater County Crow Wing County Grant County Hennepin County Hubbard County Kandiyohi County Mahnomen County McLeod County City of Moorhead Morrison County City of North Mankato Ottertail County City of Owatonna City of Pipestone City of Sauk Centre City of Sauk Rapids City of St. James City of St. Peter Stevens County Swift County City of Wells City of Winona Wright County City of Zimmerman 6.65% Consider applying for the Community Activity Set-Aside (CASA) program. Contact Kimberly Stuart for more information. Questions? Call: Kimbedy Stuart 651-296-9959 800-710-8871 Note: Cancellation of current reservations may provide resources to replenish the allocations. In addition, when the pool collapses on October 20, 2000, any unused MCPP funds fall into a general pool accessed by consumers in MCPP communities on a first come basis. To check the overall MCPP balance call: 651-297-3135 (Metro) 800-657-3896 (Greater MN) 400 Sibley Street, Suite 300, St. Paul, Minnesota 55101 (651) 296-8215 Fax - (651) 296-8292 TTY (651) 297-2361 Equal Opportunity Housing and Equal Opportunity Employment MCPP Usage Report 8/23/00 Allocation Name Allocation Commited Funds Available Amount Amount Albert Lea $207,662.00 $209,612.00 -$1,950.00 Alexandria $205,492.00 $184,162.00 $21,330.00 Anoka City $220,382.00 $228,415.00 -$8,033.00 Anoka County $3,348,021.00 $3,402,776.00 -$54,755.00 Bamesville $100,000.00 $100,000.00 Becket County $362,912.00 $386,750.00 -$23,838.00 Beltrami County $464,945.00 $427,300.00 $37,645.00 Blue Earth County $682,235.00 $705,251.00 -$23,016.00 Breckenridge $100,000.00 $65,300.00 $34,700.00 Chippewa County $160,134.00 $182,938.00 -$22,804.00 Chisago County $493,627.00 $524,910.00 -$31,283.00 Clearwater County $103,333.00 $132,000.00 -$28,667.00 Crow Wing county $633,090.00 $684,401.00 -$51,311.00 Dilworth $100,000.00 $60,820.00 $39,180.00 Dodge County $184,952.00 $57,200.00" $127,752.00 Duluth $1,045,834.00 $1,032,639.00 $13,195.00 Fillmore County $244,910.00 $51,200.00 $193,710.00 Glenwood $100,000.00 $100,000.00 Glyndon $100,000.00 $92,697.00 $7,303.00 Grant County $100,000.00 $171,000.00 -$71,000.00 Hennepin County $8,748,706.00 $8,824,767.00 -$76,061.00 Houston County $238,146.00 $134,588.00 $103,558.00 Hubbard County $207,390.00 $258,850.00 -$51,460.00 Kandiyohi County $512,581.00 $549,440.00 -$36,859.00 Lake City $100,000.00 $60,900.00 $39,100.00 Lake of the Woods C $100,000.00 $100,000.00 Mahnomen County $100,000.00 $153,385.00 -$53,385.00 McLeod County $427,920.00 $502,687.00 -$74,767.00 Moorhead $416,228.00 $469,619.00 · -$53,391.00 Morrison County $386,393.00 $464,671.00 -$78,278.00 Mower County $461,056.00 $445,385.00 $15,671.00 North Mankato $144,321.00 $167,953.00 -$23,632.00 Ottertail County $667,428.00 $668,855.00 -$1,427.00 Owatonna $259,910.00 $333,024.00 -$73,114.00 Pipestone $100,000.00 $127,000.00 -$27,000.00 Ramsey County $2,814,560.00 $1,216,785.00 $1,597,775.00 Rice County $663,711.00 $534,300.00 $129,411.00 Sauk Centre $100,000.00 $125,315.00 -$25,315.00 Sauk Rapids $117,650.00 $122,227.00 -$4,577.00 St. Jam~s $100,000.00 $125,745.00 -$25,745.00 St. Peter $120,190.00 $159,910.00 -$39,720.00 Stevens County $130,151.00 $144,031.00 -$13,880.00 Swift County $139,058.00 $180,346.00 '-$41,288.00 Washington County $2,367,465.00 $1,622,656.00 $744,809.00 Wells $100,000.00 $115,000.00 -$15,000.00 Winona $326,206.00 $336,423.00 -$10,217.00 Wright County $1,041,871.00 $1,070,910.00 -$29,039.00 Zimmerman $100,000.00 $134,328.00 -$34,328.00 # of Loans 4 3 2 31 7 7 9 1 3 5 2 9 1 1 16 1 1 3 86 2 4 10 1 4 7 7 7 8 2 12 4 3 12 7 3 1 2 2 3 3 14 2 5 10 2 Percentage of Usage 100.94% 89.62% 103.65% 101.64% 0.00% 106.57% 91.90% 103.37% 65.30% 114.24% 106.34% 127.74% 108.10% 60.82% 30.93% 98.74% 20.91%' 0.00% 92.70% 171.00% 100.87% 56.51% 124.81% 107.19% 60.90% 0.00% 153.39% 117.47% 112.83% 120.26% 96.60% 116.37% 100.21% 128.13% 127.00% 43.23% 80.50% 125.32% 103.89% 125.75% 133.05% 110.66% 129.69% 68.54% 115.00% 103.13% 102.79% 134.33% $29,948,470.00 $27,648,471.00 $2,299,999.00 329 92.32% ,',en Anderson - eda resolution re tif plan tif district no. 9.doc . . ; i Page 1 DRAFT COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. RESOLUTION APPROVING A MODIFIED REDEVELOPMENT PLAN FOR THE CENTRAL BUSINESS DISTRICT REDEVELOPMENT PROJECT AND A TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT (REDEVELOPMENT) NO. 9 BE IT RESOLVED By the Board of Commissioners ("Board") of the Columbia Heights Economic Development Authority ("Authority") as follows: Section 1. Recitals. 1.01. The City of Columbia Heights ("City") has previously established the Central Business District Redevelopment Project (the "Project") and a redevelopment plan therefor (the "Redevelopment Plan"), originally administered by the Housing and Redevelopment Authority in and for the City of Columbia Heights ("HRA"). 1.02. By resolution approved January 8, 1996, the City transferred the control, authority and operation of the Project from the HRA to the Authority. 1.03. The Authority is acting as set forth herein in order to administer the Authority's development and redevelopment efforts more efficiently, and in accordance with the Redevelopment Plan and pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the "HRA Law"). Specifically, the Authority finds that action is needed within the expanded Project area is to correct blight, prevent the emergence or spread of blight or blighting conditions, and facilitate development of adequate, safe and sanitary dwellings in order to protect the health, safety, morals and welfare of the citizens of the C!ty. 1.04. The Authority has also proposed the establishment within the Project of Tax Increment Financing District (Redevelopment) No. 9 (the "TIF District") and a Tax Increment Financing Plan ("TIF Plan") therefor, pursuant to the HRA Law and Minnesota Statutes, Sections 469.174 through 469.179 ( the "TIF Act"). 1.05. The Authority has caused to be prepared a document titled "City of Columbia Heights, Minnesota, Columbia Heights EDA Tax Increment Financing Plan for Tax Increment Financing District (Redevelopment) No. 9 (Crestview/Real Estate Equities Project)" (the "Plan"). 1.06. The City Planning Commission has provided a written comment to this Board finding that the Plan is consistent with the comprehensive City plan. Section 2. Plan Adopted; Further Proceedings. 2.01. The Plan is hereby approved and adopted and the Redevelopment Plan is hereby modified accordingly. 2.02. The Board hereby makes all the findings set forth in the Plan, which is incorporated herein by reference. 2.03. The Board hereby transmits the Plan to the Council and recommends that the Council hold the required public heating and adopt the Plan. 2.04. Upon approval of the Plan by the Council, Authority staff and consultants are authorized to take all actions necessary to implement the Plan, including negotiation and 1 DJG- 186308vl CL205ol I Ken Anderson ' eda resolUtion re tif Plan tif district no. 9.doc Page 2 I preparation of agreements in connection with development and redevelopment within the TIF District and Project area. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 19t~ day of September, 2000. President Attest: Executive Director 2 DJG-186308vl CL205-11