HomeMy WebLinkAboutEDA AGN 11-14-00 Exec. Session EDA COMMISSIONERS
CITY OF COLUMBIA HEIGHTS RobertW. Ruettimann
Patricia Jindra
Donald G. Jolly
590 40TH AVENUE N.E., COLUMBIA HEIGHTS, MN 55421-~878 (6! 2) 782-2800 TDD 782-2806 Marlaine Szurek
Gary L. Peterson
Julicnn¢ Wyckoff
John Hunter
NOTICE OF ECONOMIC DEVELOPMENT AUTHORITY CLOSED SESSION
Notice is hereby given that a Columbia Heights Economic Development Authority Closed Session
is to be held in the
CITY OF COL UMBIA HEIGHTS
as follows:
Meeting of:
Date of Meeting:
Time of Meeting:
Location of Meeting:
Purpose of Meeting:
ECONOMIC DEVELOPMENT AUTHORITY
NOVEMBER 14, 2000
6:30 P.M.
CONFERENCE ROOM I
CLOSED SESSION
AGENDA
Closed Session
Sullivan Lake TIF District Decertification - Steve Bubul, Kennedy & Graven,
Chartered.
2. TIF Cashflow Report - Shelley Eldridge, Fiscal Agent from Ehlers and Associates.
,/"~'~ H:\edaA~enda2000\ll-14-2000Closed Session
THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
EQUAL OPPORTUNITY EMPLOYER
CITY OF COLUMBIA HEIGHTS
$90 40TH AVENUE N.E., COLUMBIA HEIGHTS, MN $$42 !-3878 (612) 782-2800 TDD 782-2806
ECONOMIC DEVELOPMENT AUTHORITY
November 14, 2000
EDA COMMISSIONERS
Robert W. Ruettimann
Patricia Jindra
Donald G. Jolly
Marlaine Szurek
Gary L. Peterson
Ju[ienne Wyckoff
John Hunter
The following is the Agenda for the regular meeting of the Columbia Heights Economic Development Authority
(EDA) to be held at Tuesday, November 14, 2000, IMMEDIATELY FOLLOWING THE CLOSED
SESSION, in Conference Room 1, Ci~_ Hall, 590 40th Avenue N.E., Columbia Heights, MN.
The EDA does not discriminate on the basis of disability in the admission or access to, or treatment or employment in, itsI
services, programs, or activities. Upon request, accommodation will be provided to allow individuals with disabilities toI
]participate in all EDA services, programs, and activities. Auxiliary aids for handicapped persons are available upon requestI
Iwhen the request is made at least 96 hours in advance. Please call the EDA Secretary at 706-3669 to make arrangementsI
[(TDD/706-3676 for deaf or hearing impaired only). I
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 October 17, 2000.
MOTION: Move to approve the minutes as presented in writing.
2) Financial Report and Payment of Bills.
a. Financial Statement for October, 2000.
b. Payment of Bills for October, 2000.
MOTION: Move to approve Resolution 2000-18, Resolution of the Columbia Heights Economic
Development Authority (EDA) approving the financial statement for October, 2000 and approving
payment of bills for the month of October, 2000.
REPORT OF THE MANAGEMENT COMPANY.
A. . Anita Kottsick, Parkview Villa Public Housing Administrator.
CITIZEN FORUM TO ADDRESS EDA ON MATTERS NOT ON AGENDA.
(At this time, citizens have an 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.
ITEMS FOR CONSIDERATION.
A. Other Resolutions - None.
THE CITY oF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
EQUAL OPPOBTUNITY EMPLOYER
10.
11.
B. Bid Considerations - None.
Other Business.
1) Final Development Agreement for Transition Block - Dan Greensweig, Kennedy and
Graven, Chartered.
MOTION: Move to set a special meeting of the Columbia Heights Economic Development Authority
for 5:30 p.m. on Monday, November 27, 2000 in Conference Room 1, City Hall, 590 40th Avenue N.E.
2) Reconveyance of Forfeited Lands to State of Minnesota- Ken Anderson.
MOTION: Move to approve reconveyance of forfeited lands at 4460 and 4470 Buchanan Street N.E. and
1330 44 V2 Avenue N.E.; and furthermore, to authorize the President and Executive Director to enter into
an agreement for the same.
3) Community Development Block Grant (CDBG) Program Changes- Ken Anderson.
4) Approval of the Downtown Master Plan "Town Square" Concept - Walt Fehst.
MOTION: Move to adopt the Town Square Concept Plan of the Columbia Heights Downtown Master
Plan to guide future redeve!opment efforts with the goals of creating a positive identity for downtown
Columbia Heights, strengthen ties among nearby neighborhoods, and to attract appropriate new business
opportunities.
5)
Approval Change Order No. 2 to Replace Worm and Gear for Elevator No. 1 -Walt
Fehst.
MOTION: Move to approve Change Order No. 2 to replace Worm and Gear for Elevator Number 1 at
Parkview Villa North in the total amount of $12,360 with payment from Fund 203-46331-4000; and
furthermore, to authorize the President and Executive Director to enter into an agreement for the same.
ADMINISTRATIVE REPORTS.
A. Report of the Deputy Executive Director - Ken Anderson.
1) Set Date for Holiday Dinner - See Calendar for December and January.
B. Report of the Executive Director - Walt Fehst.
C. Committee/Other Reports.
MEETINGS:
A. The next Regular EDA meeting is scheduled for 6:30 p.m., Tuesday, December 19, 2000 in
Community Room B at Parkview Villa.
12. ADJOURNMENT.
Walter R. Fehst, Executive Director
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 OCTOBER 17, 2000
CALL TO ORDER - The Regular Meeting of the Columbia Heights Economic Development Authority (EDA) was
called to order by Vice President Pat Jindra at 6:37 p.m., Tuesday, October 17, 2000, in Conference Room 1, City
Hall~ 950 40'~ Avenue N.E.~ Columbia Heights~ Minnesota.
ROLL CALL
Commission Members Present:
Commission Members Absent:
Staff Present:
Patricia Jindra, Marlaine Szurek, Don Jolly, Gary Peterson, Julienne Wyckoff,
and John Hunter
Robert Ruettimann
Walt Fehst, Executive Director
Ken Anderson, Deputy Executive Director
Anita Kottsick, Parkview Villa Public Housing Administrator
Shirley Barnes, Crest View Management
Randy Schumacher, Community Development Assistant
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).
Move to Adopt the consent agenda items as listed below.
1) Approval of Minutes
1) Regular meeting of September 19, 2000
2) Special Meeting of September 25, 2000
3) Amended minutes of August 16, 2000
MOTION by John Hunter, seconded by Marlaine Szurek, to approve the minutes as amended and presented in
writing. All Ayes. MOTION CARRIED.
2)
Financial Report and Payment of Bills
a. Finaiacial Statement - September, 2000
b. Payment of Bills - September, 2000
MOTION by Marlaine Szurek, seconded by Julierme Wyckoff, to approve Resolution 2000-16, Resolution of the
Columbia Heights Economic Development Authority (EDA) approving the financial statements for September,
2000 and approving payment of bills for September, 2000. All Ayes. MOTION CARRIED.
3) Approve Payment tt5 to Millar Elevator Service Company.
Mr. Anderson submitted Payment #5 for elevator modernization for Parkview Villa. He explained that yesterday
the staff received a letter from Mr. Ted Smith, President of Elevator Advisory Group, in regards to the repairs
needed to f'mish the project, and requesting payment in the total amount of $34,025.00. Staff is recommending that
10% of the total contract amount be retained until the f'mal punch list items are resolved. This retainage amount
totals $25,838; therefore, only $8,187 will be disbursed at this time with the remaining $25,838 to be disbursed
upon f'mal approval of punch list items. The following punch list items need to be inspected before f'mal payment is
disbursed:
1) Elevator does not respond to hall calls from the upper floors.
2) Controller duct needs a cap.
3) Large ground wire was loose on the controller.
4) Traffic analysis report which will tell them and staff how long people have to wait for the
elevator to respond to the call.
5) Cleaning the control doors.
6) Several of the car doors have hand smudges, so they will need to be cleaned.
Mr. Smith recommended that we do a worm and gear replacement on elevator number one at approx. $10,000. This
is basically a screw that goes out from the motor with a gear on it. Staff will work with Anita and the possibility of
using the Capital Grant Funds.
Economic Development Authority Minutes
October 17, 2000
Page 2
MOTION by Sulienne Wyckoff, seconded by Marlaine Szurek, to accept the work for Pay Application #5 and to
authorize payment of $34,025.00 to Millar Elevator Service Company of Cleveland, Ohio, with $8,187 authorized
for immediate disbursement and $25,838 upon satisfactory completion of punch list items as determined by staff.
All Ayes. MOTION CARRIED.
In Discussion, John Hunter asked how long do we hold the 10% of the billing? Mr. Anderson responded that we
keep it until the project is completed and everything is working properly.
REPORT OF THE MANAGEMENT COMPANY
B. Anita Kottsick, Parkview Villa Public Housing Administrator.
Anita was going to attend a demo ora HUD software program on October 10, 2000, but it was canceled. Instead,
she was able to view a tape from the same demo program that Aleksandr Chemin from the I.S. Department had
attended earlier.
The Elevator modernization project passed inspection. Anita will be meeting with the company's representatives
for review of the f'mal punch list items. The south elevator was down on 10-7-2000 with a resident inside, the
phone did not work and the Fire Department was called out to service the elevator. After investigating the phone in
car #3 (South) she found out that it does not work. Millar Elevator Service has been contacted to set up the phone
to call the main office number. Anita suggested a temporary alternative of leaving a cell phone in the elevator for
emergency use.
A Building Watch Program was held on October 4, 2000. The results of the building survey were shared and it was
decided that there was not enough interest to develop a system at this time.
The Maintenance Coordinator is looking at the price of additional higher fencing being installed at 4607 Tyler.
Numerous complaints from current residents have come in relating to people trespassing through the property.
The #2 circulation pump motor is down in the South building due to a power surge. Maintenance has removed it
and will take it to a local motor repair company.
Apartment #104's heating system has a leak. The header needs to be replaced to maintain a comfortable building
temperature. The heating system will be repaired after the header on the boiler has been replaced. A header is on
order and will be installed the week of October 9, 2000.
Anita stated the she has received a report from Charlie Thompson, Fire Chief, regarding the response time of the
call on September 16, 2000. The Fire Department actually arrived in 4 minutes and 44 seconds instead of the 12
minutes as reported by residents at last month's meeting and the Rescue Team was there in 2 minutes and 12
seconds. He was also a guest speaker at the October 9~ Resident Council meeting to educate residents on fire safety
and answer any questions residents had. Dana Alexon, Assistant Fire Chief, is scheduling with Anita to give
residents a demonstration on the Fire Department their power point software program.
Anita stated that she has solved the problem with the garbage overflow by the dumpster. It can be brought down to
the 1st floor trash chute. Larger items that need to be disposed must be coordinated with the office and those items
will be put into the back dumpster.
Ms. Barnes reported that if passed on Thursday at their Crest View Board meeting, effective Thursday, October 26,
2000, Anita will work at Parkview Villa full time and Kari will service Crest View full time. Both Anita and Kari
will back up each other when necessary. The Board felt that this was a good decision in all aspects both for
management and for the residents. She also expressed her thanks to Charlie Thompson, Fire Chief, for his safety
presentation at the Residents Council and his report to Crest View Corporation on the fire call from last month.
Another subject raised by Mr. Jolly was that some residents are still concerned about the loose carpet in the front
Economic Development Authority Minutes
October 17, 2000
Page 3
entrance. Over the years, Ken has talked to Bill Gault in regards to this and at one point they recommended that we
have someone like Home Depot come in and actually cut, seam and glue the carpet down. However, the only way
to really fix the problem is to replace the carpet. Mr. Hunter stated that we need to be sure that we do not purchase
carpet seconds because his experience is that it is cheaper and doesn't last as long. Ms. Barnes stated that she and
Anita would see what could be done about it.
CITIZEN FORUM TO ADDRESS EDA ON MATTERS NOT ON AGENDA.
RECOGNITION~ PROCLAMATIONS~ PRESENTATIONS~ GUESTS - None.
PUBLIC HEARINGS - None.
ITEMS FOR CONSIDERATION
C. Other Resolutions.
1) 2001 Budget Presentation.
Mr. Anderson stated the Budget packet is very explicit as to the departments, funds, etc. It is necessary for the
EDA to pass the Resolution with the recommendation to the City Council approving the Proposed Budget for taxes
payable in 2001. The EDA on August 28, 2000 adopted Resolution 2000-11 setting the recommended EDA Levy at
$119,295 which is the same amount approved for the 2000 Budget year. He went through the summary highlighted
budget sections and explained any major changes. In the past we had submitted two different draft Budgets; one for
Community Development and one for Economic Development. This years draft was put together for the whole
Community Development Department. Ken stated that the following sections need changes:
Fund 20346330 Parkview Villa North the expenses total $349,552. Reductions in the proposed line items need to
be made to reduce the total to $333,592 which is the amount of anticipated revenue for 2001. There was a
calculation error in this section. He recommended that we make the cut in the area of repair and maintenance.
Specifically, cupboards and paint to some of the units. We could also use some of our Capital Grant Funds that we
have used in the past to help pay for these items. This reflects a reduction of $15,960 in expenses or we could leave
it the way it is and spend our fund balance down. Anita and the Board members did not have a problem with
reducing the budget by the $15,960.
Ken stated that from the CIAP Grant we are expecting $128,560 in funds which is not reflected in the budget. This
could also possibly be used for these items. Marlaine Szurek asked Anita if she had all of the notes from the
Capital Funds meetings? Anita stated that she thought that Michelle had kept some records and she will look for
them. Marlaine Szurek stated that these would be very helpful.
Fund 20146310 Community Development Administration show total expenses of $102,572. These expenditures
need to be revised and decreased to a total amount of $101,257 which is the same amount as the anticipated revenue
to be received in the recommended Levy. He recommended that the amount of $80,378 for Personal Services be
reduced to $79,063.
Fund 10141940 General Government Buildings Section- $41,261 should be under Capital Outlay not
Contingencies & Transfers '(printing error).
Fund 20446314 Economic Development Authority. The EDA levied a total of $119,250 at its meeting in
August. The expenditures only come up to $I 19,045. Therefore, he recommended that we add to the expenditures
so that the total shows $119,250 as adopted in the Levy under the other services category.
Mr. Fehst asked how often are we changing the rents of the residents in Parkview Villa? Mr. Anderson indicated
that the rents have never gone up since the start of the program. Mr. Hunter asked about how the 30% of the seniors
income works for Public Housing, does that reflect what they pay for rent? Anita explained that each tenant is re-
evaluated each year rents adjusted based on income changes.
Economic Development Authority Minutes
October 17, 2000
Page 4
Under Fund 23543685 Temporary Housing; the only costs reflected is for sales tax, snow removal and lawn
mowing for units that the EDA and City own. This amount has gone down due to the City/EDA selling some of the
properties recently.
Mr. Anderson recommended that the EDA adopt the proposed Budget with the amended changes. Mr Fehst
reported that Ken, Bill Elrite, and himself did review the budget once already. They made some cuts and changed
around some funds to other areas where needed.
In Discussion, Pat Jindra questioned Fund 10141940 as the amount for electricity seemed high. Mr. Anderson
stated that the electric line item was adjusted 3% higher and 'gas was 5% higher as recommended by the Finance
Department. The Commissioners felt that maybe the increase wasn't going to be enough. Mr. Fehst stated that all
departments may have to adjust their budgets in this area. At this time, we haven't received an actual stated amount
of increase from the utility companies.
Mr. Hunter questioned what is going to happen to the insurance rates? Who will cover this? John has heard that it
will be going up 15 to 20%. Walt Fehst stated that every year we do compare our insurance with the Minnesota
League of Cities program. Mr. Feb_st responded that he felt that we have good insurance and didn't feel that there
would be a problem if the rates went up.
MOTION by Marlaine Szurek, seconded by Julieune Wyckoff, to waive the reading of Resolution 2000-17, there
being ample copies available to the public. All Ayes. MOTION CARRIED.
MOTION by Marlaine Szurek, seconded by Julienne Wyckoff, to adopt EDA Resolution 2000-17, Being a
Resolution of the Columbia Heights EDA adopting a Budget for 2001 as amended. All Ayes. MOTION
CARRIED.
D. Bid Considerations.
1) Award Bid for Asbestos Removal at 3950 Lookout Place.
Mr. Schumacher gave the report. On October 28, 2000, the Fire Dept. is proposed to use the property at 3950
Lookout Place as a practice bum site. The property at 3944 Lookout Place will also be used in this way. For the
property at 3950 Lookout Place, the EDA is responsible for the removal of the asbestos prior to the bum. Staffhas
gone out for bids for the removal of the asbestos and would like to recommend D.A. Abatement Company of
Columbia Heights to be used for the removal. They were the low bidder at a total cost of $1,975.00. Because this
bid amount is under $2,000 we are able to use CDBG Funds. They will furnish all labor, materials, services, and
equipment necessary for asbestos decontamination and waste disposal services. All work will be in accordance with
OSHA regulations, Minnesota Department of Health Asbestos Abatement Rules, and other applicable Federal and
State regulations and they will ensure proper clean up, transportation and disposal of asbestos and asbestos
contained materials.
Mr. Jolly questioned if the utilities have been disconnected yet? Randy responded that the utilities have been turned
off. Marlaine Szurek suggested that we contact residents as to the date of when the bum will take place.
Mr. Fehst will make sure that this issue is addressed.
MOTION by Gary L. Peterson, seconded by Don Jolly, to except the low bid for D.A. Abatement for the removal
of all asbestos contaminated material located at 3950 Lookout Place; and furthermore, to authorize the President and
Executive Director to enter into an agreement for the same. All Ayes. MOTION CARRIED.
E. Other Business
1) Approval of the Downtown Master Plan "Town Square" Concept.
Mr. Anderson reported that the City applied for and received Livable Communities Demonstration Account funds
from the Metropolitan Council to prepare a Master Redevelopment Plan for the downtown area. Staff has been
working with SRF Consulting Group, Inc. and a 22 member task force in preparation for this plan. A town meeting
Economic Development Authority Minutes
October 17, 2000
Page 5
was held on November 17, 1999 for citizens to review and comment on the proposals. The Task Force
recommendations were discussed at work sessions on January 17 and August 7, 2000. The version dated April,
2000 and received on August 2, 2000 includes a reformatted market analysis section and expanded streetscape
section with a suggested list of trees to be planted. The Town Square concept focuses on the area west of the
intersection of 40~' Avenue and Central Avenue. The intent is to create a new mixed-use district on 40~ Avenue
west of Central which combines new centralized civic uses, new public open space, commercial development, and
new downtown multi-family residential development into a revitalized center. The Huset Park Neighborhood
Association meeting was held on Thursday, October 12, 2000.. EDA staff was asked to give a presentation on the
concept, answer questions and better acquaint residents with the concept plan. Residents were quite concerned with
the potential impacts on their individual properties. Ken feli that after the presentation was over that the residents
did have a better understanding of the concept, however, he felt that they were still worried about the impact to their
properties. The City Council has akeady reviewed this plan and approved the "Town Square" Concept. However,
because the EDA and City Council is involved, staff is recommending that the EDA approve the concept also.
Mr. Fehst also recommended that the EDA approve the Concept. He felt that Mr. Anderson and staff had done a
very good job in presenting this plan. Pat Jindra stated that she had never seen the Downtown Master Plan Book.
Staff stated that it was sent out to her and that we will provide her with another copy.
In Discussion, some of the Board members were approached by residents wonTing about losing their homes to the
new Town Square Concept. Mr. Fehst stated that he has talked to a few residents in regards to this and explained
that no they aren't necessarily going to lose their homes. He has akeady asked Ken Anderson and Tim Johnson to
look into what we can do about this concern of the citizens of Columbia Heights. In particular, Marilyn Peters was
very upset with the possibility of losing her home. Mr. Jolly stated that he had talked to her about this and indicated
that this was only a projected plan and may or may not be implemented as presented.
Some concerns that were brought up by commissioners was that the residents felt were not informed of the proposed
development. It was stated by Marlaine Szurek that it was publicized, voted on, public hearings held on it, door to
door explanations, etc. Basically, the board felt that the City did all that they could to make the residents aware of
the possible plan. Mr. Jolly stated that he felt in the future the City may have to send notices to the residents by
certified mail and keep the return cards on file.
Julienne Wyckoff asked about items under section 6 of the Concept Plan, what is going on with creating ownership
space within the Mall? Mr. Fehst stated that the owner is not interested anymore in doing this but that he has asked
Becky Loader to do a report on bagel and coffee shops in the metro area with the possibility of contacting them to
see if they would be interested in relocating in the City of Columbia Heights. Marlaine Szurek felt that either the
Library or Don's Appliance would be ideal sites for a coffee or bagel shop.
MOTION by Marlaine Szurek, seconded by Julierme Wyckoff, to table this item until next month after President
Ruettimann and Vice President Jindra have reviewed the plan. All Ayes. MOTION CARRIED.
2) Sale of Property - 4216 Central Avenue N.E.
Mr. Schumacher reported that on August 16, 2000 the EDA Board approved extending the Purchase and
Development Agreement for the property at 4216 Central Avenue N.E. between Mr. Bruce Nedegaard and the EDA
until September 30, 2000. The intention for the property is to combine it with the adjacent property which Mr.
Nedegaard also owns, construct an office building with sufficient space for his business and additional office space
which would be made available for lease. The project had a few minor changes from the plans that staff received
last year such as the name change from Bruce Nedegaard to B.N.A. All departments have reviewed the revised
plans. Staff is prepared to close this week on the property and is asking the Board to approve the development
agreement extension until October 31, 2000.
MOTION by Don Jolly, seconded by John Hunter, to approve the extension of the amended Purchase Agreement
between Mr. Bruce Nedegaard- (B.N.A.) and the Columbia Heights EDA until October 31, 2000 for the property
Economic Development Authority Minutes
October 17, 2000
Page 6
located at 4216 Central Avenue N.E., PIN no. F35-30-24-14-0077. All Ayes. MOTION CARRIED.
ADMINISTRATIVE REPORTS
A. Report of the Deputy Executive Director.
1) Change in Phone System for Parkview Villa Staff phones
Anita Kottsick reported that sometime in November, the I.T. Department is proposing to change the main phone
number for Parkview Villa. Residents will have to be notified and the flyers and letterhead changed before this
change happens.
2) Summary of Section 8 Adminisiration Transfer.
Randy Schumacher reported that the transfer of the Section 8 administration is f'mally complete to the Metropolitan
Council. The next step will be to transfer the I-IRA to the EDA per HUD formal criteria. The paperwork for the
transfer was started last year but ended up being put on hold until this transfer of the Section 8 Program took place.
Staff will start again on the transfen'ing process with HUD.
3) Status of Mortgage and Assignment of Mortgages files with Anoka County.
.The two mortgages that were sent to Anoka County for filing on 9-7-2000 were received back in the Community
Development Department last Thursday, October 12, 2000 and were sent certified mail to MHFA the same day. As
of today, staff has received confu-mation that the MHYA received them. Therefore, the City has finished the £mal
steps necessary for the mortgage processing. The Shemey Gafkjen Mortgage payoff of $4,759.22, was paid to
Compu-Link Loan Service as directed by the EDA Board last month. Mr. Anderson requested that the Board think
about trying to take Mr. Gafkjen to court to obtain reimbursement of mortgage.
In discussion, it was decided not to pursue recovering the money from Mr. Gafkjen.
B. Report of the Executive Director.
1) Fire Safety Training Seminar and Fire Inspection at Parkview Villa North.
Mr. Fehst stated that the report was already given to the Board by Anita Kottsick under the Parkview Villa report of
management.
C. Committee/Other Reports.
1) Residents Council Minutes of September 4 and 11, 2000 for review only.
Pat Jindra explained that these were the minutes of the meetings that she attended even though she isn't requked to
attend them but every 3 months.
Other issues
Mr. Peterson asked the status of the Hemak house. Mr. Schumacher stated that we do not have a Purchase
Agreement with them yet. Peterson said he was asking because he has received reports that there are some
questionable activity going on in the home. Therefore, he felt that the EDA should try to move quickly with the
purchase of the property. Ms. Wyckoffhas also heard about some possible problems at the property. Mr. Fehst will
have the Police Departmem look into this matter.
MEETINGS
The next EDA meeting is scheduled for 6:30 p.m., Tuesday, November 21, 2000, in Community Room B at
Parkview Villa and a special meeting on Monday, November 6, 2000, to review the TIF Cash Flow Report.
Economic Development Authority Minutes
October 17, 2000
Page 7
ADJOURNMENT
MOTION by Marlaine Szurek, seconded by $ohn Hunter, to adjourn the meeting at 8:41 p.m. All ayes. MOTION
CARRIED.
Respectfully submitted,
Cheryl Bakken
Recording Secretary
H:~EDAminutes\ 10-17-2000
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: November 14, 2000
AGENDA SECTION: Consent Agenda ORIGINATING EXECUTWE
NO: DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Financial Report and Payment of Bills BY: Ken Anderson BY:
DATE: November 3, 2000
BACKGROUND:
The bound Financial Report for October I, 2000 Check Listing (green sheets), and draft Resolution
2000-18 are attached for review. The enclosed Financial Report lists the Revenue Guideline (pink
sheets), the Expenditure Guideline (yellow sheets), Expenditure Guideline with Detail (white sheets),
and Balance Sheet (blue sheets), for each fund and department. The report covers the activity in the
calendar (fiscal) year fi.om January 1 through October 31, 2000.
The Check History shows each fund with an expenditure history during the month of October, 2000.
The total disbursements by fund are shown at the top of the listing.
RECOMMENDATION:
Staffwill 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 2000-18, Resolution of the Columbia Heights Economic Development
Authority (EDA) approving the Financial Statement for October, 2000 and Payment of Bills for the
month of October, 2000.
EDA ACTION:
t'{:xconsenv I 1 -I 4-2000FinRcp.wpd
EDA RESOLUTION 2000-1--8
RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
APPROVING THE FINANCIAL STATEMENT FOR OCTOBER, 2000 AND PAYMENT OF BILLS FOR
THE MONTH OF OCTOBER, 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 October,2000 and the list of
bills for the month of October,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
MOTION BY:
SECONDED BY:
AYES:
NAYS:
day of , 2000.
Robert Ruettimann, President
Attest by:
Cheryl Bakken, Secretary
H;\Rcsolution$',2000-18
Parkview Villa
Housing ComPlex
965 N.E. 40th Avenue, Columbia Heights, MN 55421
'" '~1 {612) 788-6055. ~:~,~1
12) 782-0857
DATE: NOVEMBER, 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, HOUSING ADMINISTRATOR
RE: OCT/NOV MANAGEMENT REPORT FOR PARKVIEW VILLA &
4607 TYLER
PHYSICAL PLANT:
Elevator modemization project- Millar is working on completing items listed on their punch
list. Bill Gault and I will need to do a walk through with Millar representative when they
have completed' their punch list to be sure all aspects of the modernization are completed
to our satisfaction.
South elevator has a new ADA complaint phone installed. There have been no further
problems with this elevator since last report.
Parkview Villa North has had two separate leaks in hot water pipes within apartments.
Both leaks were a pinhole in pipe. In one case the leak eventually showed up within
apartments on sheet rock. The second leak showed up in ceiling on first floor and was
tracked back to a leak in a shower on floor ninth floor.
Apartment#104 heating system leak has been repaired after the header on the boiler was
been replaced. Need to patch and paint area that has been damaged during repair. Will
paint entire bedroom. Resident has requested entire apartment be painted at this time,
but annual inspection report does not indicate the need to paint entire apartment.
Charles Thompson, Fire Chief conducted a surprise fire alarm test to see how long it took
the monitoring company to contact the fire department once the alarm was set off. The
monitoring company contacted the fire department within one minute of the alarm being
tripped which is well within the expected time frame.
Owned by the EDA o! the City of Columbia Heighls
Equal Housing Opportunity Agency
Managed by Crest View Management Services
Residents have been informed of the upcoming change in the office number. As I received
additional information I will share it with residents.
Planning to replace the carpet in the foyer, patch ceiling, paint, and add better signage for
using the security phone system.
OCCUPANCY:
NORTH BUILDING:
APT # VACANCY DATE
509 March 1(elevator mod)
801 Nov. 23
904 Oct. 31
NAME MOVE-IN DATE
Terese Saice Oct. 26
working off waiting list
Barb Collins Nov. 29
SOUTH BUILDING:
APT# VACANCY DATE
218 Nov. 15
219 Oct. 31
NAME MOVE-IN DATE
Bernice Johnson (int.) when ready
Delores Parker Dec. I
Waiting list totals are as follows:
Parkview Villa North
25 CH Residents
41 Non-residents
4607 Tyler
4 CH Residents
7 Non-residents
Pad(view Villa South
29 CH Residents
16 Non-residents
MISC:
For informational purposes the Parkview Villa calendar is attached.
At request of EDA commissioners I have attached copies of minutes from past Capital
Improvements meetings.
Finally, I am planning on taking vacation December 11 thru December 15.
PARKVIEW VILLA
CAPITAL IMPROVEMENT COMMITTEE
THURSDAY, ,a~PRIL 29, 1999 - 9:30A.M.
Parkview Villa Community Room B
Present:
Marlaine Szurek, Jennifer Stoopes-Mokamba, Bill Gault and Patty Muscovitz.
Jennifer mentioned that the EDA is scheduled for a tour of Parkview Villa facilities on Tuesday,
May 18, 1999 at 5:30 p.m., just prior to the regular May EDA meeting.
Jennifer stated she would like to start discussion with the Board regarding programming issues,
i.e. converting one apartment to a resident computer mom or room for classes like the ones
offered for seniors by Augsburg College.
Jennifer handed out a Capital Improvement/Replacement Schedule for the North, South and
combined North/South building, originally begun by the Public Housing Administrator before
her.
Jennifer summarized items discussed at the last meeting.
Bill pointed out that several items on the CIP list have already been completed.
Members discussed for the North building:
,.
the need to replace kitchen cabinets/sinks. Unit #310 has cabinets from Menards which
cost $700 for complete materials. Estimated installation labor would be under $500 for
each unit.
Completing two floors (or 24 units) each budget year beginning in 2000.
Six units already completed.
The need to replace bathroom sink/vanities/medicine chests with a possible pedestal sink
with free standing shelving over the water closet and medicine chest.
The possibility to complete the kitchens and bathrooms at the same time to limit
inconvenience to residents. It was felt residents would not have to be moved fi'om the
apartment to do this work.
Members felt the kitchens and bathrooms in the South building did not need upgrading as they
are only 9 years old.
Members discussed appliance needs for the North building:
Two refrigerators and two stoves are budget each year for emergency replacement. All
appliances were last replaced in 1988. These appliance will continue to be budgeted for
yearly.
The 20" ovens are very small and suggested when replaced should be with at least a 24"
oven. Bill indicated the themaostats need replacement regularly.
Appliance needs for the South building:
One refrigerator and one stove are budget for emergency replacement yearly. This should
continue. Ali stoves in the South building are full size.
Members discussed that it may be possible for some funding to come from the operating revenue
fund which is approximately $289,000.
Lighting needs for the North building:
Apartments
a. The outdated hanging lights can be replaced with appropriate lights for
approximately $20 each. Out of necessity, about 13 have been replaced so far.
Common areas
a. The lighting in the hallways should be replaced with brighter, more efficient
fixtures.
Lighting needs for the South building.
1. Again, as this is a newer building there is no need for improvement.
Floor coverings for the North building:
,.
4.
5.
6.
The apartments - linoleum floors need to be covered over as the current covering has
asbestos. Bill described the layout of how linoleum and carpet work best. Commercial
grade linoleum and indoor/outdoor carpet would be the best choice.
Common areas - in front of the serving areas the flooring needs to be replaced with
ceramic tile.
Have a service bring in mats (rugs) weeldy.
For hallways carpet squares that could be spot replaced if necessary.
Having the front entryway and by the elevators done in ceramic tile.
It was mentioned that the common area bathrooms badly need renovation.
Floor coverings for the South building:
1. Again, as this is a newer building there is no need for improvement.
Jennifer and Bill will meet with the Contractor's Rep. from Menards to check on prices.
Variations will include total replacement (i.e. cabinets) or purchasing for the replacement on two
floors (24 units) at one time.
Patty passed on information from Ken Anderson stating:
The CIP program through HUD will be changed to the FAIR SHARE program. The CIP
application will no longer be due in June. The new Fair Share program application will
be due October 1 each year. The amount available may be estimated at $1,000 per unit.
He wanted to remind the committee to include follow-up elevator work in this request.
2. Kathy Young will look at the cost to seal coat the parking lot at PVV. This cost, plus the
cost of stripping should be considered for budget purposes.
Jennifer indicated the parking lot was coated two years ago and felt it was not necessary. Bill
indicated the only spot that needed mending was the small area where vandalism occurred. Both
Jennifer and Bill felt the parking lot needs to be re-stripped.
The committee is again scheduled to meet on:
Thursday o May 13~' at 9:30 a.m.
Thursday - May 20~ at 9:30 a.m.
by:
ovitz
CommUnity Development Secretary
h:~29-99
PARKVIEW VILLA
CAPITAL IMPROVEMENT COMMITTEE
THURSDA Y, M_d Y 13, 1999 - 9:30 A.M.
Parkview Villa Community Room B
Present: Marlaine Szurek, lennifer Stoopes-Mokamba, Bill Gault and Patty Muscovitz.
Jennifer indicated Bill provided her with a list of things that have been done on the North
building.
Staff'has been unable to meet with a representative from Menards for price quotes.
Jennifer indicated discussion items should include: roof, windows, elevators, common areas, and
bathrooms.
Roof
-The South building roof is not a problem since it was built in 1991.
-The North building roof was replaced in 1992. There continues to be a problem where
the roofs meet between buildings as the shift or movement creates a crack. The
contractor has tried to fix this area twice. It is necessary to budget repair of this area in
2000.
Windows
-The South building windows pose no cun'ent problem.
-The windows were replaced on the north end of the North building in approximately
1986. Staff.will research the date. These windows were replaced with smaller windows
and the refraining resulted in constant cracking and air leaks around all the windows.
Elevators
-Bids specifications for repair to elevators in the North building have been returned to
Ted Smith, Elevator Advisory Group. Iuitial funding will come from the CIAP grant.
Hopefully, additional funding will come from the new Fair Share program and it will not
be necessary to budget for these repairs. $243,000 is needed, with CIAP allowance at
$137,000. Staff.felt it was necessary to complete control panel repairs first.
-Elevators in the South building are only 9 years old and nm on hydraulics.
Bathrooms
-In the North building the second floor bathrooms have been remodeled. The Ladies
room on the main floor is in need of being stripped and redone. The tile is loose and
buckling, the door, stalls, dispensers, etc. do not at ADA standards.
Common Areas & Laundry
-North common areas were painted in 1997. Washing machines on the second floor are
Parkview Villa's and they have akeady paid for themselves.
PARKVIEW VILLA
CAPITAL IMPROVEMENT COMMITTEE
Present:
THURSDA Y, MA Y 20, 1999 - 9:30 A.M.
Parkvie~ Villa Community Room B
Marlaine Szurek,'iennifer Stoopes-Mokamba, Bill Gault and Patty Muscovitz.
Discussion revolved around priority items to budget for in the year 2000.
-It will be necessary to re-hook the 4 boilers back to the system.
Butterfly valves will be completed in August '99. '
Staff researched costs of:
Kitchen faucet replacement at approximately $52.90 per unit.
Bathroom faucet replacement at approximately $34.97 per unit.
(This indicates kitchen and bathroom faucets for two floors at a time could be
completed for under $2,500.)
Replacement of globe light in living room/dining room at under $20.00 per unit.
Hallway wall scones to improve inadequate lighting in the halls (and lower the lights
from the top edge of the wall) would require 8 new lights per floor ~ 59.95 each - This
was considered a life safety issue.
Kitchen cabinet replacement $700, installation $400 ($1,100 per unit).
The Committee discussed the immediate life safety issue necessitating the repair of all elevator
problems for resident safety. Motion by Szurek, second by Gault, to recommend that for the life
safety of residents to initiate necessary Noah building elevator repairs immediately, the balance
of funds necessary to complete these repairs come from the Reserve Account. All ayes. Motion
carried.
The use of Reserve Account funds for the immediate, necessary repairs to the elevators in the
North building would then allow for the future Fair Share funds received from HUD to be used
to upgrade units, i.e. kitchen cabinets. Ms. Stoopes-Mokamba indicated that increases in the
number of new senior housing units available for rent is making it increasingly difficult to
market and fill units in an older building that has not been upgraded. She also felt the number of
younger people moving in causes less desirability to seniors who then move elsewhere. It was
initially the idea for this complex to be senior housing. It was acknowledged that people like to
live in new or upgraded facilities and if units are not upgraded they will either stand empty or be
abused by less desirable tenants.
h:¥vv~imp~omS- 13-99
lU W UJ
~o .
°~om
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: November 14, 2000
AGENDA SECTION: Other Business ORIGINATING EXECUTIVE
NO: 9-C-1 DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Final Development Agreement for BY: Kenneth Anderson ~ ~BY:
Transition Block DATE: November 9, 2000t
BACKGROUND: The Executive Director has requested that Dan Greensweig, Legal Counsel from
Kennedy and Graven, Chartered, attend the meeting to update the EDA Commissioners as to the status
of the Final Development Agreement for the Transition Block Project. The City Council has scheduled
at its regular meeting of November 13, 2000 several approvals relating to the preliminary and final plat,
preliminary planned development agreement, and first reading for parking ordinance. At this time it is
anticipated that the form of the agreement between the parties will be available for adoption at the
regular scheduled Council Meeting of November 27, 2000. Therefore, it will also be necessary for the
EDA to meet and approve said agreement.
RECOMMENDATION: Staff is recommending that a special EDA meeting be held on November 27,
2000 to review and approve the Final Development Agreement for this project.
MOTION: Move to set a special meeting of the Columbia Heights Economic Development Authority
for 5:30 p.m. on Monday, November 27, 2000 in Conference Room 1, City Hall, 590 40th Avenue N.E.
EDA ACTION:
\Consent\Final Development Agreement Trans. Block
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: November 14, 2000
AGENDA SECTION: Other Business ORIGINATING EXECUTIVE
NO: 9-C-2 DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Reconveyance of Forfeited Lands to State BY: Kenneth Anderson ~ ~BY:
of Minnesota. DATE: November 9, 2000~'br
BACKGROUND: Staff has been corresponding with officials from the Minnesota Department of
Revenue regarding tax forfeit properties that were originally acquired by the Housing and
Redevelopment Authority. The properties are located at 4460 and 4470 Buchanan Street N.E. and 1330
44 ½ Street N.E. The Property at 4450 Buchanan Street N.E. was sold to a private party, Michael
Klukas. Mr. Klukas has defaulted on the terms of the Sale and Development Agreement by not
constructing a home, however, he is current in paying his taxes. These properties were acquired in 1994
for an approved public use for the purpose of subdividing the property as necessary and redeveloping the
property with housing in accordance with. the City zoning for the area. The conveyance of the forfeited
lands to the I-IRA dated the seventeenth day of 1994 required that "if such use shall cease said land will
revert to the party of the first part (Commissioner of Revenue)". All three of the referenced properties
are located in areas which have significant soil problems and generally require home construction using
pilings which may need to be as deep as 80 feet based upon previous soil borings.
A letter was received September 25, 2000 requiring that these parcels be conveyed to the Department of
Revenue to comply with the previous reversionary language. Forms 975 and 976 must be executed to
complete the reconveyance to the State of Minnesota (see attached).
RECOMMENDATION: Staff is recommending the EDA authorize the reconveyance of the properties
at 4460 and 4470 Buchanan Street N.E. and 1330 44 ½ Street N.E. to the State of Minnesota in
accordance with the terms of the attached reconveyance forms.
MOTION: Move to approve reconveyance of lands at 4460 and 4470 Buchanan Street N.E. and 1330
44 ½ Street N.E.; and furthermore, to authorize the President and Executive Director to enter into an
agreement for the same.
EDA ACTION:
h:\consent\Reconveyance of Forfeited Lands
~L~OF~TY Il:IX Fa× :551-297-2166
2000 15:27 P. 02
RECONV'EYANCE OF FORFEITED LANDS TO SI'ATE OF MINNESOTA
BY GOVERNMENTAL SUBDIVISIONS
WHI IEAS,. PUnuant to Minneq~l S1~ Section 282.01, Sul:xlMsi(xt 1, the' STATE OF
MINNES~ 'A, as trustee under Minnesota Statute~ Section 281.25, on the ...
lg~,c weyed to__ day of______,
a governm~ ~tai subdivi$i°n, the lands hereinafter de~, to be usad for an authorized p4Jblle use, and
WHEREAS, Said governmental subdivisTon 'ha~ failed ~o put such land to the public ttle for whieh it
wa~ conveyed~ has abandoned the public use for whieh ~ land was conveyed, and now c~e~ to
reconvey g!d lands to the State of Mlnn~ota. as ~uch trustee,
NOW,:THEREFORE, This indenture, made mb
betw~n_ !~ _dayof ,19~,
State of :~L~,,~ota, as ~a,~y of the first ~art, and the State of 19E a 9ovemmm~l 'subdivislon of.the
party of · ascond part, .
----, ......... -~,~0 ~ nem~y ~rant, Ba'gain, Quitclaim
and RecoPy unto the ;id party of .the as~oncl ~ all the tract ot parcel of land lying and being in the
Cour~y of i. in the Stata of Minnesota, described as follow~ to-wir
in trust as Provided by Minnasota Stal:ute~ Section' 28:1.25, upon like condJt/ons and with like effec~ as if
said lancb hid n~t been conveyed to ~aid party, of the first pan at afo/~MicL
TO H~VE AND TO HOLD THE SAME, Together with all the hered|taments and al~ourtenancas
thereunto b~longing (x in anywise al~ertaining, to the said party of ~ second part and its ~J(X~ and
assigns, Fon~:. .
· . IN TE .~TIMONY WHEREOF, Said ;)arty of the fits( pan has ~used these premet~to be executed
hereunto afl,?ced the day and year first above wr/tten. . and its corporate seal to be
In Prasence
STATE OF ~INNE~TA )
~un~ ~_ ~ ~) =.
By_
By
On this____._.__ day of
a w/thin and for said coun ,' 19_ _,lbefom nm,
_ and ty Pertotlal y aPpelirecl
m me personally know~, who, being each by me duly sworn gy that 1flay are re~a~ctively
govemmenta~ subclividon named in the foregoing ir41tumen% an4 that the sam affixed to
said ins'mJment i~ the carpomte ~ of said govemmen~l subdh~ion, and that asid
instrument was signed ~qd waled in behalf of said gov~mmentat subd'na~ian by authority of
i: i~ and said
ii act and deed of said govemmental subdivisionS- -~l"-'~wG~Gwd se~ :~aaument to be the free
APPROVAL
of -'"~l~--'U~nd~" n-ed' .a~.ng for ~, Commissioner of Revenue of the State ,w u;... --
. ""u":nW ..u,y ri;ecl with Ute ~ecreta-, of ~"~ "--- ~ -' ..... ne~bi, underdelegation
~;mte of Minn ~,~ota. - · ----. uu~ nermy aDl~rotm the%~oregoirigconveFanceto the
In the ~ of:
STATE OF MINNESOTA
I
daf a~d year l~-st above written.
STATE 01~ )it ~A
COUNTY OF
STATE OF MI NNE~;OTA
· CITY OF COLUMBIA HEIGHTS
590 40th AVENUE N.E., COLUMBIA HEIGHTS, MN 55421-3878 (612) 782-2800 TDD 782-2806
'LEASE NOTE: CITY HALL PHONE NUMBERS HAVE CHANGED.
NEW NUMBERS ARE: MAIN NUMBER (763)706-3600; TDD (763)706-3691
Mayor:
Gary L. Peterson
Councilmembers:
Donald G. Jolly
Marlaine Szurek
Julienne Wyckoff
John Hunter
City Manager:
Walter R. Fehst
COMMUNITY DEVELOPMENT
October 20, 2000
Attn: Linda Leitold
Property Tax Division
Minnesota Dept. of Revenue
Mail Station 3340
St. Paul, MN 55146-3340
RE: Notice of Reversion.
Dear Ms. Leitold:
We are in receipt of yoUr Notice of Reversion of Forfeited Lands dated September 25, 2000. We
are writing to provide some clarification to you regarding the status of the two referenced
properties. The first property has the following legal description as per the Declaration of
Reversion of Forfeited Lands:
Lots 8 and 9, Doneroving Addition; except road; subject to easement of record.
This property was acquired as tax forfeit .property by the Housing and Redevelopment Authority
in and for Columbia Heights (HRA) in 1994. On September 12, 1994, the City Council approved
the lot split for lots 8 and 9, Doneroving Addition and created three parcels with the following
addresses and property identification 'numbers:
4450 Buchanan Street, PIN 36-30-24-21-0159
4460 Buchanan Street, PIN 36-30-24-21-0160
4470 Buchanan Street, PIN 36-30-24-21-0161
The south 113 feet of these lots with an address of 4450 Buchanan Street was sold on October 2,
1995 to a private party, Michael T. Klukas. The purpose for the sale was to construct a single
family home on the property. We have enclosed a copy of the Sale and Development Agreement
for the referenced property. In February 1999, the Housing and Redevelopment Authority in and
for the City of Columbia Heights conveyed by Quit Claim deed the property at 4460 and 4470
Buchanan Street to the Columbia Heights Economic Development Authority (EDA) which was
newly established in January of 1996. The purpose of this letter is to inform the Minnesota
Department of Revenue of the subdivision of the property and sale and conveyance of all three
newly created parcels to two separate parties.
Regarding the property at 1330 44 ½ Avenue N.E., PIN 36-30-24-21-0071, the Housing and
Redevelopment Authority in and for Columbia Heights conveyed this property by Quit Claim
Deed to the Columbia Heights Economic Development Authority on February 1, 1999.
THE CiTY OP COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
EQUAL OPPORtUNiTY EMPLOYER
Linda Lietold
October 20, 2000
Page 2 of 2
We are forwarding for your information and review copies of the referenced Quit Claim Deeds to
document the conveyance of the referenced parcels. We suspect the conveyance of these parcels
will impact the State of Minnesota's reversionary interest in these properties. In previous phone
conversations with you it was explained to me that the sale of the property to the referenced
private party would prevent any action on the part of the state of Minnesota to reconvey this
property. If this is tree and since a portion of this property was sold, at a minimum the documents
will need to be modified to reflect the lot split. Given the poor soil conditions on these lots, we
don't anticipate any opposition to the reconveyanc, e of the remaining property back to the State if
it so wishes.
Please contact me directly at 763-706-3672 to discuss the implications of our existing circurn-
stances as it relates to the reversion of this property. Thank for your attention in this matter. I
look forward to hearing fi.om you soon.
~cK~O~me~nt (~__~Director
Attachments
C:
Walt Fehst, City Manager
James D. HoeR, City Attorney
Tim Johnson, City Planner
Day file
H:\Ken\Linda Leitold
~"~"'-- PT Form 101 (Rev. 11/99)
Staple All Correspondence
Minnesota Department of Revenue
Notice of Reversion of Forfeited Lands
Name and Address of Officer
of Political Subdivision:
Ken Anderson
Columbia Heights HRA
590 40e Ave. NE
Columbia. Heights, MN 55421
Citation: M.S. 282.01, Subd. la-le
Date:
September 25, 2000
On February 29, 2000, the Department of Revenue mailed a "Notice of Verification of State Use Deeds" to
your political subdivision. The mailing included a list of tax-forfeited land conveyed to your political
subdivision in 1994, free of charge for an approved public use, a copy of SD Form 961 for changing the use,
and a copy of SD Form 975 and SD Form 976 for reconveying the land or a portion of the land to the State of
Minnesota. ,..
The Notice of Verification requested that you retum the list of tm, c-forfeited land with your description of its
current use to the Department of Revenue within 90 calendar days after the date on the Notice of Verification.
If you wanted to request a change of use or reconvey the land to the State of Minnesota, you were asked to
staple the appropriate completed form to the enclosed list.
The Notice of Verification warned that, if your political subdivision did not respond within 90 calendar days
after the date on the Notice of Verification, the Department of Revenue would assume that the land was not
being put to the approved public use and would take action to enforce the reConveyance of the land to the State
of Minnesota.
A contact was made by phone, informing this office that the land was unuseable for the purpose acquired.
As of the date on this Notice of Reversion, the Department of Revenue has not received any further response
from your political subdivision. As a result, the Department has prepared a Declaration of Reversion for the
land (copy enclosed) and is serving this Notice of Reversion to your political subdivision under the provisions
of M.S. 282.01, Subd. le.
Your political subdivision has thirty (30) calendar days from the date on this Notice of Reversion to appeal the
Declaration of Reversion to the district court in your county. If you fail to file an appeal or fail to send a copy
of the notice of appeal by certified mail to the Department of Revenue within the 30-day deadline, the
Department will file a Declaration of Reversion and proof of service of Notice in the office of your counVy
recorder or registrar of titles.
Mail all correspondence to:
.. Attention: Linda Leitold
Property Tax Division
Department of Revenue
Mail Station 3340
St. Paul, MN 55146-3340
If you have any questions about this Notice of Reversion or the enclosed Declaration of Reversion, please call
Linda Leitold at (612) 296-0394.
Sincerely,
DEBORAH E. VOLKERT, Acting Director
Proper~y Tax Division
Enclosure: Declaration of Reversion
STATE OF MINNESOTA
DECLARATION OF REVERSION OF FORFEITED LANDS
TO THE STATE OF MINNESOTA
Issued by thc Minnesota Commissioner of Revenue Pursuant to Minnesota Statutes, section 282.01, subdivision le
(Affix Deed Tax Stamp Here)
State Deed Tax Due Hereon: $1.65
WHERE,,I$, the real property described below (hereinaRer "Property") became forfeited to the State of Minnesota by
reason of nonpayment of taxes and due operation Of law as evidenced by the county auditor's certificate of forfeiture dated
October 3, 1985 and recorded on October 3, 1985 as Document Number 687840 in the office of the Anoka County Recorder.
~;.VHERExZ$, pursuant to Mim~esota Statutes, section 282.01, subdivisions la to lc, inclusive, the State of Minnesota
subsequently conveyed the Property to Columbia Heights HRA, a governmental subdivision of the State of Minnesota,
(hereinafter "Governmental Subdivision"), for a specified public use and subject to the State's reversionary interest by State
Deed number 181141 on the 17th day of Sune, 1994;
WHEI~E.4$, the Govermnentai Subdivision has failed to put the Property to the specified use, or has abandoned that
use, and the Governmental Subdivision has not put the Property to another public use that has been approved as provided in
Minnesota Statutes, section 282.01, subdivision lc;
WHER. F.,4$, the Governmental Subdivision has failed to reconvey the Property to the State of Minnesota as Minnesota
Statutes, section 282.01, subdivision ld requires; and,
WHEff~EA$, Minnesota Statutes, section 282.01, subdivision le authorizes the Commissioner of Revenue to declare the
Property ravened to the State of Minnesota under the aforementioned conditions; '
NOW, TItEREFORE, pursuant to Minnesota Statutes, section 281.18, section 281.25, and section 282.01, subdivision
lc, the State of Minnesota declares that absolute title to the Property, in Anoka County, State of Minnesota, described as
follows:
Lots 8 and 9, Doneroving Addition; ex~:ept mad; subject to easement of record
hereby reverts to the State of'Minnesota, in trust for the taxing districts having an interest in the Property.
Signed this 25th day of September, 2000
STATE OF MINNESOTA
MATTIIEW G. SMITH
Commissioner of Revenue
STATE OF MINNESOTA
County of Ramsay
This ins~'ument was acknowledged before me this 25th day of September, 2000, by DEBORAH E. VOLKERT, the
duly appointed delegate of the Conu~issioner of Revenue of the State of Minnesota.
lily COgeaSS~ON EXP~RF.q f
JANUARY 31, 20~ _~ Notarial"Stam~or SeaL:
Tax Slatentetlts (ir arty) for file real properly described in Ibis instrument should be sent to Ihe Coutliy Audllor arUte Comtly wherei~t Ibc properly
I$ located, in care ortho Counly Courthouse.
Approved by ~ AUomey GeneraL This iflstmmenl was drafted by lie Conmfissiom:r of Revenue, Mismesola D~pam~:nl of RaY.sue. SI. Paid. MN 55146. Rcvi~.'d
STATE OF MINNESOTA
DECLARATION OF REVERSION OF FORFEITED LANDS
TO THE STATE OF MINNESOTA
Issued by the Minnesota Commissioner of Revenue Pursuant to Minnesota Statutes, section 282.01, subdivision le
(Affix Deed Tax Stamp Here)
State Deed Tax Due Hereon: $ 1.65
WHEREdS, the real property described below (hereinafter "Property") became forfeited to the State of Mirmesota by
reason of nonpayment of taxes and due operation of law as evidenced by the county auditor's certificate of forfeiture dated
October 13, 1983 and recorded on October 14, 1983 as Document Number 626336 in the office of the Anoka County
Recorder.
F/HEREA$, pursuant to Minnesota Statutes, section 282.01, subdivisions la to lc, inclusive, the State of Minnesota
subsequently conveyed the Properly to Columbia Heights HRA, a governmental subdivision of the State of Minnesota,
(hereinafter "Governmental Subdivision"), for a specified public use and subject to the State's reversionary interest by State
Deed number 181142 on the 17th day of J'une, 1994;
IVHEREA~, the Governmental Subdivision has failed to put the Property to the specified use, or has abandoned that
use, and the Governmental Subdivision has not put the Property to another public use that has been approved as provided in
Minnesota Statutes, section 282.01, subdivision I c;
}FH£P,.E,4$, the Governmental Subdivision has failed to reconvey the ProperW to the State of Minnesota as Minnesota
Statutes, section 282.0 !, subdivision I d requires; and,
fVH£REA$, Minnesota Statutes, section 282.01, subdivision l e authorizes the Commissioner of Revenue to declare the
Property rever~ed to tile State of Minnesota under the aforementioned conditions;
NOW, THEREFORE, pursuant to Minnesota Statutes, section 281.18, section 281.25, and section 282.01, subdivision
le, the State of Minnesota declares that absolute title to the Property, in Anoka County, State of Minnesota, described as
follows:
Lot 46, Block 1, Reservoir Hills, except South One Half; subject to easements of record
hereby reverts to the State of Minnesota, in trust for the taxing districts having an interest in the Property.
Signed this 25th day of September, 2000
STATE OF MINNESOTA
MATTHEW G. SMITH
Commissioner of Revenue
STATE OF MINNESOTA
County of R~msey
This instrument Was acknowledged before me this 25th day of September, 2000, by DEBORAH E. VOLKERT, the
duly appointed delegate of the Commissioner of Revenue of the State of Minnesota.
Notarial Stamp or Seal:
Tax Statements (if any) for the real property described in this instrument should be seal to the Coutsty Auditor of the Counly wherei, Ihe prupt, riv
Is located, In core of the County Courthouse. '
Approved by the Attorney General. This instrumen! was drafted by the Commissioner of Revenue, Minnesma Department of Revenue, SI. Paul. MN 55146. Revised 6,'94.
CITY OF COLUMBIA
Atr_a e : C r s
PIN 36-30-24-21-0159 Status 1 Regular Units
Name KLUKAS,MICHAEL T. Permit Number 0 Year 0
Lot Address 4450 BUCHANAN ST Segment Number 36102
Lot Descr 83 X 100
[ Property Description ]
THE SOUTH 113 FEET OF LOTS 8 & 9, DONEROVING ADDITION, ANOKA COUNTY, MN.
SUBJECT TO 44 1/2 AVE NE OVER THE SOUTH 30 FEET THEREOF.
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]'HE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS OF DISABILITY IN EMPLOYMENT OR THE F~ROVISION OF SERVICES
EQUAL OPPORTUNITY EMPLOYER
No delinquent taxes and transfer
entered; Certificate of Real
Estate Value ( ) filed ( ) not
required Certificate of Real
Estate Value No.
· 19
County Auditor
by
Deputy
\mun£~\he~ght I \hc&\kluka.. wd
(reserved for recording data)
STATE DEED TAX DUE HEREON $1.65
Date: October ? - , 199~
FOR VALUABLE CONSIDERATION, the Housina and Redevelopment Authority in add
for the City of Columbia Heiahts, a body corporate and DolitiC under the
laws of Minnesota, Grantor, hereby conveys and warrants to Michael T,
Klukas, Grantee, real property in Anoka County, Minnesota, described as
follows:
The south 113.00 feet of Lots 8 and 9, Doneroving Addition, Anoka
County, Minnesota, subject to 44 1/2 Avenue NE over the south 30.00 feet
thereof.
Subject to the terms and conditions of that certain Sale and Development
Agreement by and among the City of Columbia Heights and Michael T.
Klukas, dated October 2, 1995, filed , 1995, as
Document No. .
The Grantor certifies that the Grantor does not know of any wells on the
described real property.
together with all hereditaments and appurtenances belonging thereto,
subject to the following exceptions:
STATE OF MINNESOTA)
) ss.
COUNTY OF )
The Housing and Redevelopment
Authority in and for the City of
Columbia Heights
D. ~.. MurzyW,/Jr.~
Its: Ch~rp~r~pn .
-/q .'~ //.~- / /'.
(//C.(! ">' ....... ~ "
~y:,~.,~_./~..L;~: ~F,, ....
Donald R. Schneider
Its: Executive Director
The foregoing~was acknowledged before me this Jn/~ day of October,
1995, by D. J. Murzvn. Jr. and Donald R. Schneider, the Chairnerson and
Executive Director of the Housinq and Redevelopment Authority ~D and for
the City o~ Columbia Heiqht~, a body corporate and Dolitie under the laws
of MinnesQt~, on behalf of the Housing and Redevelooment Authority.
K^T~IRYN R. PEPIN ~ . ... ' ///)//'-,./;. '
~.,~,:7~ ~,~/".' Cc,,,". ....... S,n. Jin. ,:. ~)0 [ No~ar~ Pub~ ~//. -
THIS ]NSTRUMENT WAS DRAFTED BY:
BARNA, GUZY & STEFFEN, LTD.
400 NOrthtown Financial Plaza
200 Coon Rapids Boulevard
Minneapolis, MN 55433
(612) 780-8500 (JDH)
Tax Statements for the Real
Property Described in this
Instrument Should be sent to:
Michael T. Klukas
1601 North Innsbruck Dr., #347
Fridley, MN 55432
DRAFT ?- 13-95
MICROFILMED.._i,~ 13 1996
SCANNED
S~LE & DEVELOPMENT AGREEMENT
RELATING TO
· 4450 Buchanan Street N.E.
BY AND BETWEEN THE
HOUSING AND REDEVELOPMENT AUTHORITY
IN ~ FO~ THE CITY
OF COLUMBIA HEIGHTS
AND
MICHAEL T. KLUKAS
SALE & DEVELOPMENT AGREEMENT
~__~__~I~REEMENT, made and entered into this ~ day of
1995, by and between the Housing and Redevelopment
Authority in and for the City of Columbia Heights, (hereinafter
called the "HRA"), and Michael T. Klukas (hereinafter called the
"Developer");
WITNESSETH THAT, in the joint and mutual exercise of their
powers and in consideration of the mutual covenants contained
herein, the parties recite and agree as follows:
Section 1.
Recitals.
1.01. The property. The HRA now owns the property
described in the attached Exhibit "A", (the "Property") , located
in the City of Columbia Heights, Anoka County, Minnesota.
1.02. Facilities and Project. The Developer, in accordance
with HRA approval, plans to construct or cause to be constructed
on the Property a single family home. The Developer shall
provide the HRA with a copy of its plans and specifications
showing details on the style, exterior architectural features,
materials, color selections, etc. of the home to be constructed,
which plans and specifications shall be submitted to the HRA for
review and approval prior to the issuance of any building permits
on the Property.
Section 2. Sale/Purchase of Property.
2.01. Sale. The HRA agrees to sell the Property to
Developer and the Developer agrees to purchase the Property from
the HRA for the purchase price o~.~%9,0~D~ Developer shall begin
const.~uction of the home within ~u~-~L~ar of the date of
execution of this agreement and shall complete construction
within eighteen (18) months from said start date, at which time
the HRA will convey fee title to the property by Warranty Deed to
Developer.
Section 3. DeVeloper's Representations. The Developer hereby
represents, warrants and covenants to the HRA that:
3.01. Compliance. The Developer will comply with and duly
and promptly perform all of its obligations under this Agreement
and all related documents and instruments. Developer will also
comply with all State and local codes/ordinances.
Section'4. Developer's Undertakings.
4.01 New Constl'uct~o~. DeveloPer shall be solely
responsible for the construction, marketing and sale of the
single family home on the Property.
4.02. o~V_~L~I. Developer will be responsible for
submitting to the HRA, and obtaining pre-approval of the floor
plan and front elevation of the home proposed to be constructed
on the Property. Said pre-approval must be obtained before the
City of Colnmhia Heights will issue any building permits to
Developer.
4.03. Fees and Charges. The DeVeloper will pay, when due,
all permit fees, connection charges, user charges or other
charges lawfully imposed by the City of Columbia Heights with
respect to the Property. Upon Conveyance of the property by the
HRA, Developer agrees to be responsible for payment of all
recording fees and transfer taxes resulting from the transfer of
the Property.
~ectio~ $. ~ Undertakings.
5.01. Existing Improvements. The HRA will be responsible
for removing any existing structure, foundation and debris from
the Property and will assure that water and sewer services are
stubbed to the boulevard at no cost to Developer.
Section 6. Default.
6.01. Default. The failure to meet any condition of this
Agreement shall be an event of default.
6.02. Remedies. If an event of default occurs and is not
cured within 30 days of receiving written notice of said default,
the HRA may take one or more of the following actions:
a. suspend performance under this Agreement;
b. terminate the Agreement, thereby rendering void
any promises or approvals contained in this
Agreement;
Sect,.on 7. Notices. Ail notices hereunder shall be in writing
and either delivered personally or mailed by certified mail,
postage prepaid, addressed to the parties at the following
addresses:
Columbia Heights HRA
590 - 40t/~ Avenue N.E.
Columbia Heights, MN
55421-3878
Michael T. Klukas
1601 N. Innsbruck Drive ~347
Fridley, MN 55432
IN NITNESS WHEREOF, the HRA and Developer have caused this
Agreement to be executed the day and year first above written.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF COLUMBIA HEIGHTS
Donald J. WMurzyn/~rL
Its: Chairperson
Donald R. Schneider
Its: Executive Director
STATE OF MINNESOTA )
COUNTY OF ANOKA )
On this /F~----day of ~u/V , 1995, before me, a Notary Public
within and f~r said County,' appeared to me personally known, who,
being by me duly sworn, did say that he is Donald J. Murzyn, Jr.
named in the foregoing instrument, the Chairperson of the Housing
and Redevelopment Authority in and for the City of Columbia
Heights, a body corporate and politic under the laws of the State
of Minnesota, and that this instrument was signed as his free act
and deed.
STATE OF MINNESOTA )
) SS.
COUNTY OF ANOKA )
within and for said County, ppearea =o me personally know~., who,
being by me duly sworn, did say that he is Donald R. Schneider
named in the foregoing instrument, the Executive Director of the
Housing and Redevelopment Authority in and for the City of
Columbia Heights, a body corporate and politic under the laws of
the State of Minnesota, and that this instrument was signed as
his free act and deed. ..
· STATE OF MINNESOTA )
) SS.
COUNTY OF ~0~ )
Notary Public
on t. his 3ist day of August, 1995, before me, a Notary Public
within and for said County, appeared to me personally known, who,
being by me duly sworn, did say that he is Michael T. Klukas
named in the foregoing instrument, and that this instrument was
signed as his free act and deed.
g: ¥~Jnic\j~\ktukas.dev
EXHIBIT A
The south 113.00 feet of Lots 8 and 9, Doneroving Addition, Ancka
County, Minnesota, subject to 44 1/2 Avenue NE over the south
30.00 feet thereof.
PINS 36-30-24-21-0159
CITY OF COLUMBIA HEIGHTS
590 40th Avenue N. E.
Columbia Heights, MN 55421-3878
(612) 782-2800
Mayor
Joseph Sturdevant
Councilmem bets
Donald G. Jolly
Bruce G. Nawrocki
Gary L. Pelerson
Rob~rl W. Rueltimann
Civ)' Manager
Patrick Hentges
August 3, 1995
Michael Klukas
1601 North Innsbruck Drive, Suite 347
Fridley, MN 55432
Re: 4450 Buc~anan Street, PIN 36 30 24 21 0]59
Dear Mr. Klukas:
This letter is in response to your request for information
regarding the Special Assessments against this property. The
special assessments certified to the taxes payable in 1978 and
subsequent years were reduced by the City Council on February 5,
1990. '
On September 12, 1994, the City Council approved the lot split
for Lots 8 and g, Doneroving Addition which states that there are no
special assessments. Due to the expensive soil corrections needed
for these parcels, the City of Columbia Heights waves all unpaid
special assessments levied prior to September 12, lgg4. There are
no levied nor pending special assessments as of this date. However,
all future special assessments will go to the property.
__.S-i~t~r~l),,
Patrick Hentgc~Y, City Manager
PH/jg
95/65
'SERVICE IS OUR BUSINESS" EQUAL OPPORTUNITY EMPLOYER
THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE ON THE BASIS
OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
Property Screen
Attached: Customer(s) Assessments
~'~IN 36-30-24-21-0160 Status 2 Exempt
OCT 19 2C 0
Units 0.000
Name "EDA Permit Number 0 Year 0
Lot Address 4460 BUCHANAN ST Segment Number 36102
Lot Descr 83 X 100
[ Property Description ]
THE NORTH 83.00 FEET OF THE SOUTH 196.00 FEET OF LOTS 8 AND 9, DONEROVING
ADDITION, ANOKA COUNTY, MINNESOTA.
ESC-Exit Fl-Help
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QUIT crJ),IM DEED
SCANNED
NO delinguent taxes and transfer
entered; Certificate of Real
Estate Value ( ) filed ( ) not
required Certificate of Real
Estate Value No.
, 19
County Auditor
by
Deputy
STATE DEED TAX DUE HEREON $
/
FOR VALUABLE CONSIDERATION, the Housina and Redevelooment Authority in and for the C~¥ 9,'
Columbia HeiqhtsL a public bodv corporate and Dolitic under the laws of Minnesota, Grantor,
hereby conveys and quitclaims to the Columbia Heiahts Economic Develoomen~ Authority,
Public body corporate and oolitic under the laws of ~3ll~, Grantee, real property i:
Anoka County, Minnesota, described as follows:
The north 83.00 feet of the south 196.00 feet of Lots 8 and 9, Doneroving
Addition, Anoka County, Minnesota.
THIS QUIT CLAIM DEED IS SUBJECT TO fulfill the terms of Resolution 96-01.
TOTAL CONSIDERATION OF THIS TRANSFER IS $500.00 or LESS
together with all hereditaments and appurtenances belonging thereto.
Housing and Redevelopment Authority
of Columbia Heights, a public body
By: ~bert ~uet~//mann ' '
Its: President,
Its: Executive Director
STATE OF MINNESOTA
OF _. AN~KA
foregoing was acknowledged before me this
The
by Robert Ruettimann and Walter R. Feh~t,, the President an%l Executi~e Director, of the
Housina and Redevelopment Authority of Columbia Heiaht , a Dublic body corporate and ooliti
under the laws of Minnesota, on behalf of the Housin~ and Redevelooment Authority.
~ .. '-: .o,^.y
Notary Public
THIS ]NSTRU~NT IdAS OR,~TEO BY
City of Columbia Heights
590 40th Avenue NE
Columbia Heights, MN S$~:21
(6~2) 782-2814
The Columbia Heights Economic
Development Authority
S90 40t" Avenue NE
Columbia Heights, MN 55421
CITY OF COLUMBIA
OCT 19 200,
IN 36-30-24-21-0161 Status 2 Exempt Units 0.000
Name EDA Permit Number 0 Year 0
Lot Address 4470 BUCHANAN ST Segment Number 33482
Lot Descr 82.95/84.63 X 100
[ Property Description ]
PART OF LOTS 8 AND 9, DONEROVING ADDITION, ANOKA COUNTY, MINNESOTA,
LYING NORTHERLY OF THE SOUTH 196.00 FEET OF SAID LOTS 8 AND 9.
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THE CITY OF COLUMBIA HEIGHTS DOES NOT DiSCRIt,41NATE ON THE ~)ASIS OF' OISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
EQUAL OPPORTUNITY I:'MPLOYER
QUIT CLAIM DEED
NO delinquent taxes and transfer
entered; Certificate of Real
Estate Value { ) filed ( ) not
required Certificate of Real
Estate Value No.
, 19
SCANNED
County Auditor
by (relez'v*ed ~OF recording Deputy
STATE DEED TAX DUE HEREON $
Date: ~br~f / , 1,,~
/
FOR VALUABLE CONSIDERATION, the Housin~ and Redevelopment Authority in an4 for the City
Columbia Heights, a oublic body coz-oorate and nolitim under the laws of ~, Grantor,
hereby conveys and quitclaims to the Columbia Heights Hconomic Development Authority, a
Public body corporate and Doliti~ under the l~ws of ~, Orantee, real property in
Anok~ County, Minnesota, described as follows:
That part of Lots 8 and 9, Doneroving Addition, Anoka County, Minnesota, lying
northerly of the south 196.00 feet of said Lots 8 and 9.
THIS QUIT CLAIM DEED IS SUBJECT TO fulfill the te~nns of Resolution 96-01.
TOTAL CONSIDERATION OF THIS TRANSFER IS $500.00 or LESS
together with all hereditaments and appurtenances belonging thereto.
Housing and Redevelopment Authority
of Columbia Heights, a public body
Robert Rue~imann --
Its: Executive Director
STATE OF MINNESOTA ~
COUNTY OF ANOKA f
~. foregoing w...c~owledged before me thi. /~d.y of /~ ~g , 1,2~.
by Robert Ruettimann and Walter R, Fehst, the "President and Executive D/rector, of the
}{ousinu and Redevelopment Authority of Columbia Hei~h~, · Public body corporate and Dolit%g
under the laws of Minnesot~, on behalf of the Housina and Redevelopment Authority.
· ." ' ' ~0TARY~U=-,:. "i' Notary Public
I~Ce~m. Ez,,".d.*, 31 ' %
THIS ]NSTRIJ~NT ~ ~a, FTED BY (N~ AJ~O ADORE$S)
City of Columbia Heights
590 40th Avenue NE
Columbia Heights, MN 55421
(612) 782-2814
The Columbia Heights Economic
Development Authority
590 40th Avenue NE
Columbia Heights, MN 55421
Property Screen
Attached: Customer(s) Assessments
~IN 36-30-24-21-0071 Status 2 Exempt
OGT 19
Units 0.000
~ame ' EDA Permit Number
Lo~"Address~ 1330 44 1/2 AVE Segment Number
Lot Descr ~' 110 X 123
[ Property Description ]
LOT 46 EXCEPT SOUTH 1/2, BLOCK 1,
RESERVOIR ~ILLS, ANOKA COUNTY, M~
SI/BJECT TO ROAD AND UTILTIY EASEMENT ON NORTH 30 FEET.
0 Year 0
36103
UNRECORDED EASEMENT: AN EASEMENT FOR THE PURPOSE OF INSTALLING AND
MAINTAINING A STORM SEWER IN, ON, UNDER, AND ACROSS THE WEST FIVE (5) FEET
OF THE NORTH ONE-HI/NDRED AND SEVENTY-ONE (171) FEET OF LOT 46, BLOCK 1,
RESERVOIR HILLS ADDITION TO THE CITY OF COLUMBIA HEIGHTS, ANOKA COUNTY,
SEE CITY INDEX #1265. '
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QUIT CLAIM DEED
No delinquent taxes and transfer
entered; Certificate of Real
Estate Value ( ) filed ( ) not
required Certificate of Real
Estate Value No.
, 19
County Auditor
Deputy
(reserved foF recording 4aC&)
S?A~ DEED T= DU~ ~O. ~
FOR VALU;tBLE CONSIDERATION, The Housin~ and Redevelopment Authority of Columbia Heights, a
Governmental Subdivisio~ under the laws of Mirun~sot~, Grantor, hereby conveys and quitclaims
to the Colu~%bia Heiqhts Economic Development Authoritvo a nublic body corporate and volitie
under the laws of Minnesota, Grantee, real property inA no~ Cou~nty, Minnesota, described as
follows:
Lot 46, Block 1, Reservoir Hills, except South One Half, Anoka County, Minnesota;
subject to easements of record.
THIS QUIT CLAIM DEED IS SUBJECT TO fulfill the terms of Resolution 96-01.
TOTAL CONSIDERATION OF THIS TRANSFER IS $S00.00 or LESS
together with all hereditaments and appurtenances belonging thereto.
Housing and Redevelopment Authority
of Columbia Heights, a ~vernmental
S~/~is~on~der the laws of
M£~esota
Robert' ~tti~
Its: ~ecutive Director
STAT~ OF MINNESOTA
COUNTY OF ANOKA .
The foregoing was acknowledged before me this ~_ day of
by Robert Ruettimann and Walter R. Fehs~, the Preside~ and' Executive Direct--~r, of the
Housina and Redevelonment Authority of Colu~%bia Hetqhts, a (Jovernmental Subdivisio~ under the
laws of Minneso~a, on behalf of the ~overnmental S~bdivisig~,
THIS INSTI~#T 14AS DRAFTED 8'/ CNA~IE AND AIX~$S)
City of Columbia Heights
590 40th Avenue NE
Columbia Heights, MN 55421
{612) 782-2814
The Colu,~ia Heights Economic
Development Authority
590 40th Avenue NE
Columbia Heights, MN 55421
SCANNED
SCANNED
STATE OF MINNESOTA
DEPARTMENT OF REVENUE
CONVEYANCE OF FORFEITED LANDS
(Issued pursuant Io Minnesota Statutes, Section 282.01, Subdivision
THIS II~D~, made this 17th day of June. 1994, between the State of Minnesota.
as party of the first part, and The Housing and Redevelopment Authority of Columbia Heights,
a Governmental Subdivision, as party of the second part, WITNY~SETH:
WHEREAS, the land hereina[ter described was duly forfeited to the State of Minnesota
for the nonpayment of taxes, and,
WHEREAS, pursuant to Minnesota Statutes, SecUon 282.01, Subdivision I, the party of
the second part has applied to the Commissioner of Revenue for the conveyance of lands
hereinatler described to be used by It exclusively for the purpose'of subdividing the property as
necessary and redevelopment of the property with housing accordance with the City zoning for
the area.
WHEREAS. the Board of County Commissioners of the County of Anoka. State of
Minnesota, has recommended to the Commissioner of Revenue by resolution adopted on the
10th day or' May. 1994, that such conveyance be made.
NOW, THiER~FORE. the State of Minnesota. pursuant to said laws and In consideration
of the premises, does hereby grant, bargain, sell and convey unto thc party of the second part.
forever, all thc tracts or parcels of land lying and bcing in the County of Anoka. State of
Minnesota, described as follows, to-wit:
Lot 46. Block 1, Reservoir Hills, except South One Half; subject to easements of record.
TO HAVE AND TO HOLD THE SAME, together with all the hereditaments and
appurtenances thereunto belonging or in anywise appertaining, to the said party of the second
part so long as It shall continue to use said land for the purpose aforesaid, and upon condition
that ff such use shall cease said land shall revert to the party of the first part as provided by
law. provided, however, that a sale. lease, transfer or other conveyance of such lands by a
Housing and Redevelopment Authority as authorized by Sections 469.001-469.047 shall not be
an abandonment of such use and such lands shall not be conveyed to the State nor shall they
revert to the State.
THE GRANTOR CERTIFIES that the Grantor does not know of any wells on the
described real property. The State of Minnesota is issuing this deed for the county and other
taxing Jurisdictions and in reliance on the Auditor's certification stating no wells are located
on the above described property.
IN TESTIMONY WHEREOF, the State of Minnesota, party of the first part. has caused
this deed to be executed in its name in the City of St. Paul, Ramsey County, Minnesota, the day
and year first above written.
STATE OF MINNF~OTA )
)m.
County of ~,m,ey ]
STATE OF MIlql~ESOTA
MORRIS J. ANDERSON
~ Intlmmenl wis Drilled by
The Come'toss,ecru a~ Revenue
SI. Pa~. ~la 55146
On this 17th day of June, 1994, before me personally
appeared GERALD D. GARSKI, the duly appoi~ted
representative of the Commissioner of Revenue of the
State of Minnesota, to me known to be the person who
executed the foregoing conveyance in behalf of the State of
Minnesota, and acknowledged that he executed the same
as the free act and deed of said state pursuant to the
statutes in such case made and provided.
DIANE L 8OGGE
~t~J[/,.~ NOTARY PUBLiC'NINNESOTA
"~' ~'flff?' WASHINGTON COUN I'Y ~
~, vvv,,vvvvwv.wvv~~,
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meetin of: November 14 2000
AGENDA SECTION: Other Business ORIGINATING EXECUTIVE
NO: 6]_~...., '~ DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Community Development Block Grant BY: Kenneth Anderson~(:t~ BY:
Changes. DATE: November 9, 2000, '
BACKGROUND: The Anoka County HRA Board has approved changes to the Community
Development Block Grant (CDBG) Program currently administered by their Community Development
Department. These changes were enacted on October 10, 2000. A memorandum was distributed to City
Managers and Councilmembers and well as other administrative officials in the various cities, townships
and public service agencies providing public service in Anoka County on October 20, 2000.
Commissioner Hunter provided a copy of this to staff shortly thereafter. A copy of the memo is attached
which outlines the essence of the changes being proposed in the administration of the CDBG program.
ANALYSIS: The proposed changes will effect how Columbia Heights administers the CDBG program
in order to meet community needs. Specifically, we will no longer receive a set allocation on an annual
basis from Anoka County. Rather, it will be necessary for us to submit an application which will be
competitively evaluated among other applications received by Anoka County. Therefore, there is no
guarantee that Columbia Heights will receive funding. However, Columbia Heights' demographic
profile is such that it will be easy for us to qualify to meet one of the national objectives for this type of
funding. No one project is eligible to receive more than $300,000. We may apply to fund more than
one project, but they must be prioritized. It will be necessary for the City/EDA to revise the existing
contract with the Center for Energy and Environment (CEE) to provide administrative services related to
the Housing Rehabilitation Deferred Grant/Loan Program. It will also be necessary to identify specific
projects for which we wish to submit for funding applications. The County will be distributing requests
for proposal on or before December 1, 2000. A follow-up meeting is scheduled for mid-December to
discuss the process in more detail.
RECOMMENDATION: Staffis providing this information for general information purposes. Staffwill
provide a recommendation for changes to the contract with the Center for Energy and Environment
(CEE) for action at the December, 2000 meeting. Furthermore, after the meeting with Anoka County we
will identify potential projects for which applications may be submitted to Anoka County and which are
due not later than January 26, 2001.
MOTION: None.
EDA ACTION:
h: \consent \Comm.Dev. Block Grant Changes
COUNTY OF ANOKA
Office of Governmental Services Division
GOVERNMENT CENTER
2100 3rd Avenue · Anoka, Minnesota 55303-2265
(612) 323-5700
JENNIFER M. BERGMAN
Community Development Manager
Oirect ~323-5709
October 20, 2000
MEMO· TO:
Cities, Townships and Public Services
FROM:
SUBJECT:
Jennifer M. Bergman, Community Development Manag~
The New CDBG Program
On October 10"', the HRA Board approved the following plan for the new CDBG program:
The CDBG allOCation will be divided into 3 categories:'(1)70 % to an Open Competitive Pool which
would include a 15% dedicated amount for public services; (2) 20% to Housing Rehabilitation; and,
(3) 10% for Administration. This split is very similar to the way the program has been administered
except the percentage of the funds that would normally have been given to each city or township
will be available under a competitive system. Instead of the cities and townships having to receive
the applications for public services, the public services will apply directly to the HRA.
There are several benefits to administering the program this way:
(1) Each city and township will have access to a larger pool of funds. For example, if your city or
township is currently receiving an allocation of $100,000 of which you set aside $15,000 for public
services this leaves a balance of $85,000 for a project. ~ ~,,-,-,- +~,;,- new
township could apply for up to $300,000 for one project. If your city wanted to purchase land to
build housing, you would be able to apply for the entire amount of the land and not have to dedicate
tax dollars for that project.
(2) Instead of the cities being responsible for the administr~ program and other related
federal regulations such as environmental reviews,,a~l'E~lDavis-Bacan_'?~he HRA will take on that
responsibility. . L~ .....
(3) The HRA will.be responsible for allocating funds to the public services. Since there are always
more' 'requeSts for public service funds then there are funds available, the cities and townships have
had to select certain public services over others. The cities will not have to interview all of the
public services and try to decide who should receive how much. The public services will also
benefit because they will not have to apply to 15 different cities to receive their CDBG allocation.
Listed below are the three categories and the process for each:
'~ FAX: 323-5682
Affirmative Action-7=~fl~dal Opportunity Employer TDD/'I'TY: 323-5289
October 20, 2000
Page 2
(1) open Competitive Pool - 70% of the total grant.
The HRA will send out Request for Proposals to cities, townships, public services
and other interested parties in the first week of December. On December 14"', HRA
staff will hold one meeting for public services and a:nother one for cities, townships
and other interested parties to descdbe the application and the requirements. HRA
staff will be available to all people interested in applying for CDRG funds until the
applications are due on January 26% 2001.
Fifty-five (55) percent of the funds will be available for cities, townships and other
interested parties and 15 percent (the maximum allowed by the CDBG regulations)
will be available for public services.
All of the Projects must:
(2)
Meet one of the high or medium goals listed in the 2000
Consol.idated Plan
Be an 'eligible activity.
Meet one of the National ObjeCtive set forth in the regulations: (1)
Benefitting Iow-to-moderate income persons; (2) Eliminating slum
· and blight; and (3) Meeting an urgent need.
Not exceed $300,000.
The maximum amount allocated to.planning projects cannot exceed
10% of the total CDBG grant.
Housing Rehabilitation
A .total of 20 percent of the CDBG funds will be allocated to a county-wide housing
rehabilitation program. This is approximately the same amount that is set aside
under the current system. Funds would be available to all Iow-to-moderate income
families/households in Anoka County.
The HRA will contract services with either the Anoka County Community ActiOn
Program or the Center for Energy and. Environment to administer the program. This
is currently the way we are administering the county-wide rehabilitation program.
There is a large demand for this program, and we currently have a waiting list of
approximately 56 people county-wide.
(3) Administration
A to~al of 10 percent of the CDBG funds will be retained for the general
administration of the program. This is a slight increase in our current administration
amount (we currently retain 9% of the total grant). We would be responsible for the
administration of all of the grant proposals as opposed to the cities.
The HRA has changed the process of administering the CDBG program to comply with the
requirements of the CDBG program and ke.ep the process fair so that all cities will continue to have
access to the CDBG funds. I would be happy to answer any questions or concerns you might
have on this process.
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meetin of: November 14, 2000
AGENDA SECTION: Items for Consideration, ORIGINATING EXECUTIVE
Other Business DEPARTMENT: EDA DIRECTOR
NO: q- C -t'//.~.r, APPROVAL
ITEM: Master Redevelopment Plan for BY: Kenneth Anderson.~ ,~BY:
Downtown Columbia Heights DATE: November 8,2000 I o,
Issue Statement: This item was brought before the EDA Board in October of 2000. It was decided to table this item until
President Ruettimann and Vice President Jindra can review the plan. The City has been in the process of preparing a Master
Redevelopment Plan to improve the image and vitality of downtown Columbia Heights. We are now requesting the EDA
take action to approve the Downtown Master Plan with the Town Square as the preferred concept plan. (Please bring your
copy of the Master Plan to the meeting.)
Back~round: In response to Minnesota Design Team recommendations made in May, 1998, the City applied for and
received Livable Communities Demonstration Account funds from the Metropolitan Council to prepare a Master
Redevelopment Plan for the downtown area. Staff has been working with SKF Consulting Group, Inc. and a 22 member task
fame in the preparation of this plan. A town meeting was held on November 17, 1999, to provide an opponurdty for
interested citizens to review and comment on the proposals (see attached comment tabulation). Task force recommendations
were discussed at the work sessions scheduled for January 17, and August 7, 2000. The version dated April, 2000 and
received August 2, 2000 includes a reformatted market analysis section and expanded streetscape section with a suggested
list of trees to be planted.
Analysis: Two redevelopment scenarios (Town Square Concept and Urban Green Concept) had been recommended by the
task force along with streetscape design recommendations. As you may recall, there were three possible redevelopment
scenarios presented at the town meeting in November (Town Square, Urban Green, and Civic Center). The Town Square and
Urban Green concept were recommended for City Council consideration by the planning task force. It is generally believed
by members of the task force that these two proposals will have a more positive impact on Columbia Heights than the Civic
Center concept.
A market analysis that was prepared for the Plan indicated that redevelopment occurring in the downtown area will be most
successful in the form of smaller-scale, mixed-use retail, service, office, and residential uses. The Town Square concept
focuses on the area west of the intersection of 40th Avenue and Central Avenue. The intent is to create a new mixed-use
district on 40t~ Avenue west of Central which combines new centralized civic uses, new public open space, commercial
development, and new downtown multi-family residential development into a revitalized center. The Urban Green concept
also provides new public open space on the south side of 40t~ Avenue and provides a pedestrian connection from that open
space to Murzyn Hall. This concept places more emphasis on existing commercial buildings along Central Avenue at the
40* Avenue intersection with new public open space extending to this intersection, providing a direct visual and pedestrian
connection to Murzyn Hall. The proposed civic uses are decentralized in the Urban Green concept. The Master
Redevelopment Plan also provides streetscape design recommendations for lighting, street trees, sidewalk markings,
furnishings, and gateways. Also attached, please f'md two site plans prepared by Buetow and Associates from the Space
Needs Study which illustrate a possible scenario for City Hall, Public Safety, and a future library to be located in Huset Park.
Please note that this concept is very similar to the Civic Center Concept that the task force decided not to include as a
recommendation in the Master Redevelopment Plan. The second site plan diagrams potential realignment ofballfields in
Huset Park. There are certain core principles that are common to both concepts and are listed below:
Mixed-use development will be promoted west of Central Avenue N.E. within the target area.
Urban design elements and streetscape improvements will be incorporated along Central and 40~' Avenue N.E.
Huset Park will be connected to the vicinity of the Central and 40th Avenue N.E. intersection with a greenway
or promenade.
Increased higher density housing will be encouraged to promote mixed-use concepts.
Multi-modal transit use and pedestrian connections will be incorporated into proposed redevelopment
projects.
Key civic facilities (Library, City Hall, Emergency Services) will be co-located near green/open space and
linked to commercial businesses on Central Avenue.
Implementation steps will be initiated to solicit developer interest, acquire properties, and perform follow-up
City/EDA analysis of funding options for proposed redevelopment(s).
AGENDA SECTION: Items for Consideration, Other ORIGINATING DEPT.: EXECUTIVE
Business EDA DIRECTOR
NO: APPROVAL
ITEM: Master Redevelopment Plan for BY: Ken Anderson BY:
NO: Downtown Columbia Heights DATE: November 8, 2000
Page 2 of 2
A Huset Park Neighborhood Association meeting was held on Thursday, October 12, 2000. Approximately 60 persons
attended and were quite concerned about the potential impacts on their individual properties, i.e., acquisition through
negotiation with a developer/builder or eminent domain. Many thought the plan should be put to a public vote and were
concerned that the existing single family homes were not protected or prom°ted in the new plan.
The City Manager volunteered to attend a follow-up Huset Park Neighborhood Association meeting on Thursday, November
2, 2000 to listen and clarify the City's purposes for the plan. Approximately 100 persons attended the second meeting.
Recommendation: Staffis requesting that the EDA consider the Downtown Master Plan and approve the Town Square as
the preferred concept in the recommended motion. The City Council adopted this same motion at its meeting of August 14,
2000.
Recommended Motion: Move to adopt the Town Square Concept Plan of the Columbia Heights Downtown Master Plan to
guide future redevelopment efforts with the goals of creating a positive identity for downtown Columbia Heights, strengthen
ties among nearby neighborhoods, and to attract appropriate new business oppommities.
Attachments: Open house comment tabulation and site plans from the Space Needs Study.
EDA ACTION:
h: \consent\Master Redev. Plan3
Ci.ry Of Columbia I-/eights Downtown ;¥Iaster Plan
Community. Open House
Comment Tabulation
Toe ~spo~e to the sce'-.arios pr~e-,.r~d ar the Ope'a House was generally qu/r~ positive. Many people rxg/r..~ed tho:
they were ~ppy to see sozr.~g vapp~fag to ~:pmve
~o ~ a.s to how they might become ::~re i~volvecL or betr~ kfformed as to ~e pmc~r~ a.s it goes forw-~L
ct~/~age ofDowmow~ Col~ H~ A f~ ~i~
To~ n~ber of ~en r~po~:
~ the prope~ ~t Faa o~ do b~ or r~ide at dir~7 ~ected by ~e concept
P~e~e ch~k ~ ~t apply:
~Col~ia ~eighu r~ident ..
~O~er ofprope~ in s~dy ~ "' ~Appoint~ pubic
~Ad~o~ ~ ~ace, ~y ~ a ~nger co~oa ~ ~de m ~clle P~
~S~ng ~soc~on to C~ Av~, ~ on C~ or on 40~ ~ C~
Respo~ for fe~r~ p~ple ~ed: .:
~A b~ge ~g' over C~ Argue
~R~moval ofr~i~c~ ~ong C~
1~ ~t gm~t~ o~ ~m or vc~ conc~ ~cluded potm~ for low~ dcvelop~m=
Ite~ p~ple felt should b~ve been addrme~addr~sed ia gre~ter det~:
~P[~ for ~l~o~'co~a~on ofe~g ~deac~ or b~sses
Sugg~s~o~ o~m~ for T~ Fo~ co~i~o. ~cludcd zone p~g pcm~ for ~ ~ ~; ~d
Scenario most preferred over,/l:
[_.[L"Urban Green"- focus on Central Aven. ue as a ~reway co Columbia Heights.
.__~.~ "Town Square"- or,mn/z: c/vic, commc:-cial & residential acfimry ::.round a corr~unir/
squn. re on 40~ adjac~ to Cenm:l Argue.
_...~4 "Civic Center"- encom-,gc comm. e.mial =c,'imrv on 40'~ ac ,Mill Scree.,.
City Hall location.
2 Opposed to all rhrc: alrcm, afives.
.l No response.
~9
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COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: November 14, 2000
AGENDA SECTION: Other Business ORIGINATING EXECUTIVE
NO: 0 _ t~_ ~- DEPARTMENT: EDA DIRECTOR
APPROVAL
ITEM: Approve Change No. 2 to Replace Worm BY: Kenneth Anderson /~ ~'BCY:
and Gear for Elevator Number 1. DATE: November 9, 2000
BACKGROUND: The representatives from Millar Elevator Service Company have prepared a proposal
to replace the Worm and Gear in Elevator #1 in the Parkview Villa North apartments. The EDA
consultant, Ted Smith of Elevator Advisory Group, Inc., has indicated this work was not included in the
original bid specifications because of the lack of funding available through the CIAP Grants. With the
change to the Capital Grant Program in which the EDA will receive an allocation each year that is no
longer competitive, funds will be available in the year 2001 HUD Capital Funds Program. The
consultant and contractor both agree that the work is necessary to improve the safety and performance of
the elevator number 1. Mr. Smith will be providing a letter of recommendation and a change order form
to be considered by the EDA at the meeting of November 14, 2000. The proposed cost for this work is
$12,360. In discussion with HUD officials, this amount can be funded as a'change order to the existing
contract at this time with reserve funds, and may be reimbursed with the 2001 Capital Funds when those
become available to the EDA for disbursement.
RECOMMENDATION: Staff recommends approval 0f Change Order No. 2 to replace Worm and Gear
for Elevator Number 1 at Parkview Villa North in the amount of $12,360.
RECOMMENDED MOTION: Move to approve Change Order No. 2 to replace Worm and Gear for
Elevator Number 1 at Parkview Villa North in the total amount of $12,360 with payment from Fund
203-46331-4000; and furthermore, to authorize the President and Executive Director to enter into an
agreement for the same.
EDA ACTION:
h: \consent\Approve Change Order #1,Worm and Gear
Upgrade/Repair Proposal
OCT 2 0
Millar Eleva :Or Ser~i'ce Company
2200 Univers~ ~ve, ~Xe !80
~c Paul, ~ 5511~-181g
651-646-8822
651-644-2628
To: City of Columbia heights
Attn. Mr. Kenneth Anderson
590 40th Avenue N.E.
COLUMBIA HEIGHTS, MN
55421
Mmar Propoaal MD-053-1009
Date: 10/19/2000
Equipment Location:
Parkview Villa Apartments
Equipment Description:
Elevator #1
Millar proposes to furnish all labor, material, tools, and supervision required to conduct the work described in this
Proposal which is hereafter referred to as "Proposed Work".
All Work included in this Proposal will be conducted in accordance with the TERMS AND CONDITIONS FORM
M-1940 (11/94) and with any drawings, specifications, schedules and/or other documents that may be referenced
herein.
Proposed Work:
MACHINE, TRACTION:
REPLACE WORM AND GEAR
The worm and gear on your elevator machinery are worn beyond repair. They should be replaCed to avoid further
costly damage and resultant unsafe conditions. Lead time for fabrication of material is approximately 10 days.
The elevator will be out of service for a period of approximately 7 days to complete this repair. We have included
air freight shipping of material to help minimize the downtime of the elevator.
PROPOSAL AMOUNT AND ACCEPTANCE
Proposal Amount:
For the performance of the Work proposed herein, Purchaser shall pay Millar the sum of Twelve Thousand Three
Hundred and Sixty Dollars, in U.S. Dollars (12,~60.00), subject to authorized additions or deletions. A 25%
deposit is required upon authorization to proceed.
The Proposal Amount does not include any sales, use, excise or similar tax. The amount of any such tax, which
Millar may be required to pay or collect, will be added to an invoice(s) unless state law dictates otherwise or the
Purchaser has furnished Millar with an appropriate tax exemption certificate aCceptable to the taxing authorities.
Upgrade/Repair Proposal MD-053-1009 Page 1
Accept~mce:
It is understood and agreed that this Proposal, and the mutual acceptance thereof, constitutes exclusively and
entirely the agreement for the Work herein describec[ All other prior representations or agreements, whether
written or oral, shall be deemed to be merged herein. No changes in or additions to this agreement shall be
recognized unless made in writing and signed by both parties. Should this agreement be accepted by Purchaser in
the form of a purchase order, the terms and conditions of this agreement will take precedence over those of the
purchase order. This Proposal is not binding upon Millar Elevator Service Company until approved by one of its
authorized representatives. This proposal expires 60 calendar days from the date listed below unless accepted by
an authorized representative of Millar after such 60 day period.
Date
Acceptance in Triplicate
Authorization to Proceed
Millar Elevator Service Company
Title Title
Agent for
Date
Date
Upgrade/Repair Proposal MD.053.1009 Page 2
T~RMS AND COb'Dm·NS
Code Compfhnce: All Work, unless otherwise stipuhtod, shall bo in accordance with roquit~nems of the American Netional Standml Safety Code for Elevater3 and
Escelator-.. the National Board ofFi~o Und~'writ~, tho National Elect-ice1 Code, the Americens With Disabi~ti~ Aot, u weJl as th~ appUoshl~ sure md local ·odes in
effect on th° dine of th° ProP°esL Exiatin~ condifi°M not directly affected by tho Work ,rdy not bo in compliance v,~h cede smld~ts. If tho code dees no~ require chants
ExJUin~ Equipment: Mibr shall romevo from ~ho sito ~y oy, isfin~ ~lUipaneut bt is replaced ruder tho Pr·peril unless otherwis~ stipulated. Any removed oquipm~m
bec°mos the Panl~flY of Mflbr to properly dlapose of 8cce~h8 to ~ sonnd practices.
Use. °f Unit(s): Dul~n~ tho c°mJe of the Work, the uait(s) cited in tho Proposal Wi]l need to be romeved from nonml oparatinn. Mill~ Will remm this oni~s) m nom~l
W°rk bY O~hers: IfanY work is to be padbtmed bY othe~s in conjunction With tho Work ~ h~ it s~ ~ ~ ~ ~ ~ ~o~ h s ~
manner to ~void dehys. Such wq~k by o~hm nnm conform to dl *pplicable codes and the q,proved d~wiap (if ,-y) provided by Millu. Wo~ lx~formod by ·thru shall be
Permits & lnspocflon~: Milhr shell ob~in and pay for any neceer, ery nmic~ Or state inspect·ns and/or l~,,~:b, ud ~ ~ M u ~ ~ ~e ~
~ anthot~y, paflamm~ to Milhr's Work if included m the Proposal Tests shall be mode m the presence of such anthority, ifrequlred or their anthorizod
request and expense as these are not incinded in ~tle proposal
Chan~es in the Work: Any chsa~s ' - · ·
bo~ Porclns~ and ~. ~ tho charsotes, schedule, or ~ of the W~d~ spoeifledherem mns~ bo in wfitin~ and si~nod by authorized r~1~esontatives of
Hours of Wort: Unless other3~an ap~cd, the Wo~ descn~l be~n shall be performed dm~n8 normal business hems of the F%,ulas wo~;,,~ dey~ of the elevator trade.
Site Conditions:
Hoistw~y, Machine Room
to ~mdo~o the proposed Wo~nd/°r other affected are~: Purshesor a~ree~ to provide a clcer and ~ hola~way, maohino ~ and/or other effected m~a wMch as· subblo
Temportr~ Facilities: Pu~haser aSr·es to fi~,nish aB tompomy ske fftcllifies includ~ but not lbnltod to suitable stora~ space and utiUtios et no ·est to
Wor~ Environment: Put·baser asr·es to i~ovldo · safe wod~ euviromneut for Mfllm's employees. Tn the eveu~ l~fller on··units, at tho job site, unnfo worL~ conditions
polycMormated b~honyl ?CB; or other ~ sub~tonce, which has not boon Fonclored ham31ess, Mfllar sh~ll
~l&tely stop wod~ m the 8r~ iffoctod and fopoFt the oon~ifion to PuFshaser tn Wrltm& '~Vork in the afl'octod ere~ shall bo resumed when tho oon~fion of substance has
been Fonderod bare,lees and tho wo~ onv~ronn~nt is coflifiod saffo by an aooFodltod thh-d pafly. This lhall not constitute ~ounds flor · delay olabn by Purohaser.
such tht, tho stmotoral htop~ of the sF~tom is wMlin nfo ~ I~ du~n8 tho course of the W~ ~ discovers any s~nificent ~ between act~l oond~tlon~
and tho ~ des·ri'bed in ~e I~i, ....
~ apees to prav~de prompt wnfteu notice to tho Purchaser de~n'bin~ tho d~cy and tho ~ffeot it Wi]l have on the
WorL. An example o£· discmpncy la au eieva~F ear that we~hs ~% moro than its label indicates. Any chanso h tho Work caused by suoh dlscropancy shall be
't-'han~ in tho Work' as desoribed here~
Ounrantee: The ma~'ial and workmansh¥ finnishod by Mibr is L~rantoed ~,einst any defo~ h tho mat·rid or wod,~.,,~p occorri~ within ~ months from the
cbt· ofmsteihfion so Ion~ es nu~ serylceS are b~ pr~,lded. Th~s Gueranto~ does not ·ever re~h~ msde nooessa~y duo to Ord~ wea~ ud tear or duo to
ascidems, alt~ations by ·thru, abuse, vandellsm, improper uso, or hudequato Or improper n~intonance. Milhr will not be obl~ptod to ~roct, without ad.ti·nd
the limit ofMiliat's ruponsibility. This Charrito· is exchsivo ' ' ·
and m lien of iH o~or guarantees or wmmmo~, exlne~d or implied. WE (~M]LLAR) MAKE NO
WARRANTY OF ~I~RCHANTABILITy AND NO WARRANT]T~ WHICH EXTEND BEYOND THE DESCRIPTION ~N TH~S CONTRACT, NOR ARE THERE
~ OTHER WARRANTIES, EXPRESSED OR IMPLIED, BY OPERATION OF LAW OR OTHERWISE. Th~ ~ do~ not c~ver r~mbursemeut to
or to oth~ts for guannteo work condu~todin pla~ of Or on MiHa~ behal~ Wiflmut Mill~s Mitten censont. Prior to e~e par~onnance of any G~orantoo wod~ byMillar, aH
f~surance ~ Will pm~haan a~t maintain m~ranoo covers~ as llatod below w~th ~n msu~nce career anthorizod to do bu~nes~ in the jurisdiction in which tho Work is
located with & ~e~t A+" rath~ or b~tor. For th· il~l~a·o ~o~od hor~ ~ shah ~"ovido tho ~ with · Cer~Jflc, ato ofinan~lce ~ltit~in~ the AC·RD form,
when requited.
Workers Compemation and ~nployers Liablli~y. Workers Compensation coverage shah comply with the stamtery iimit~ roqui~ed by applicable stata and federal
statutes F..mploy~s Liability msm-an~ shah be nmntam~d with l m~ of SS00,000 each a~idont, $500,000 di~e~e eadt employee, ~d $500,000 dis·as· poliay limit.
Comprehensive General L~abllity (CGL): Comp~onsivo General Liability shall.incind,, XCU Hazard coverage, Produ~t/Comple~l Operations ~oversge, Continual
Liability ~over~o, Broad Form Propm~ D~ns~o Liability ~,~'age, and Personal Injory cev~. All cov~ago p~vided under th· CGL poliay shah have limits of
Force Majeure: D~ to th·very nato~ of fir·, explosion, theft, l~bm~,~ windstorm, oasthquako, floods, stom~ strikes, lockout~ riot~ ~ivil c~nmotinn, maliciou~
misohiot~ A0ts of God, Or any event beyond Mill~s ~aUol, whether or not the san~ is he~in spaeified, ~ shall not be held respon~l~nle or lishla for any 1o~,
detontton or delay c~us~d by ~ Any porformsace and/or ~ompletion det~s spo~iti~d m th· Proposal shall b~ extended es roasonshly necessary to compensate for any sush
delay..R'b/lill~ is delayed in the parfonmnce of its Work du~ to ~ of the Pm~ha~r or othes conlracto~ performing work for the Pu~has~, ~ shall be entitled to an
ox-te~ion of tim· to ~mpl~t· the Work and ~otnl~nsation for any additional ~ it ink, us as a ~ of snob delay.
Indemnification: In ~onsidm~ion off'rilles p~formance of the Wodt benin des~n'bed, st tho price ~tated, Pu~haser ~groes to indenmify, defend sad hold MiHar
performance of the Work Or fi'om operation of tho ~nit(s) ·ired herein whirr l~-.foro or after final s~.~tance, ·xcept es direly d~o to th·so ~ts or omission~ of]vfiHar's
employees or ~ of their sul~ontra~m~. In no event ~haH ~ party be lishlo to th· other for any spacisi, indi~'t Or con~queutial damages.
.~'bitrntion: Any conlrevor~y or claim arisin~ out of Or related to tho Proposal including any b~h th~-oo~ that ~n not be settled between tho two parties, shall be settled
by axbilrUion in accordance ~ rite Constro~on Indo~t~ ArbiUatinn Rules of the American A~bitration As.~-ialion, and judgment upon the ~ward rendered by the
~rbitra~r or arbitrator~ n~y be ~tered in say ~ having ju~.~li~tion theroo£ Such con~versies Or ciaim~ ~ be subject to arbitration upon written notice of either pray
PaYm onts: Payments ar· due Wifl~ia 30 deys ro~.-ipt of invoice. - · ·
~ tho~· servi~s. A ~.~vico ch~,o of 1.5 R'any serv~ ar· to be provided which ~ sopas~t· from tho Work, Miller will submit sepante invoices
pa~ont per monfl~ Or ~o hi~h~t ~ ~ which ever is 1o~, shall ap~ly to delinquent ~coonts. In the evmt of any dofsalt
of th· payn~nt prov~ion~ ~ Pmvha~r agn~s to pay, in additinn to any defanltod amount, all a~om~y ~ cello~tion c~ts and/or ~oort cern in cennestion therewith.
Nothing in the Pr·poll shall ~ ~ to centinno Work if timely paymm~ts a~ not made for Work a~ording to the prevision~ provided ~ the PropouL
Chims: Nothing in tho Propo~ei shah ~erve to void Mill~s right to 61e · llon or claim on its behaffin th~ event payments ar· not made in · timely manner.
Millar Repair Proposal Term· and Conditions FORM M-1940~ (I 1/94)
Upgrade/Repair Proposal MD-053-1009 Page 3
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA)
Meeting of: November 14, 2000
AGENDA SECTION: Administrative Reports - ORIGINATING EXECUTWE
Report of Executive Director DEPARTMENT: EDA DIRECTOR
NO: 10-A-1 APPROVAL
ITEM: EDA Holiday Gathering/Dinner BY: Kenneth Anderson ¢J~ BY:
DATE: November 3, 2000
BACKGROUND: It is the Holiday time of year again! I would like to discuss options with you at the
EDA meeting to determine when and where you would like to meet for our annual holiday celebration.
Attached please find calendar sheets for December 2000 and January 2001. This will allow us to discuss
possible meeting dates. Please have in mind any unique ideas you may want to share. This is always a
pleasant social evening to share with Commission members and spouses to acknowledge their
commtmity service.
Attachments
EDA ACTION:
h: \consent\EDA Holiday Gathering-Dinner I
Sunday 'Monday Tuesday Wednesday Thursday
Friday
Saturday
December
1
2
3 4 5 6 7 8
Traffic
Commission 7:00 P.M.
7:00 P.M. Planning &
Work Zoning
Session/ Library
Truth in Meeting
9
10 11 12 13 14 15 16
7:00 P.M.
City Council
/Truth in
Taxation
Human
Services
17
18
7:00 P.M.
Work
Session
19
EDA
MEETING
6:30 P.M.
2O
21
Telecommu
nications
22
City Hall
Closed
23
24
Christmas
Eve
25
Christmas
Day (City
Hall Closed)
26
27
7:00 P.M.
City Council
Meeting
28
Park &
Recreation ?
29
30
31
New Years
Eve
Sunday ~ Monday Tuesday Wednesday Thursday Friday Saturday
January 2001
1 2 3 4 5 6
New Years P & Z Mtg. Work
Day Library Session ?
(City Hall Board
Closed)
Traffic
Commission
7 8 9 10 11 12 13
7:00 P.M. Human
City Council Services
Meeting
14 15 16 17 18 19 20
Martin 6:30 P.M. Work Telecommu
Luther King EDA Session ? nications
Day (City Meeting Meeting
Hall Closed)
21 22 23
7:00 P.M.
City Council
Meeting
24 25 26 27
Park &
Recreation
28
29
30
31
Iq A
R T
470 Pillsbury Center
200 South Sixth Street
Minneapolis MN 55402
(612) 337-9300 telephone
(612) 337-9310 fax
http:/ /www. kennedy-graven.corn
DANIEL J. GREENSWEIG
Attorney at Law
Direct Dial (612) 337-9231
Emafl: dgreensweig@kennedy-gmven.com
November 14, 2000
TO: The Persons on the Attached Distribution List
RE: RE,~L ESTATE EQUITIES DEVELOPMENT COMPANY/CREST VIEW PROJECT
Enclosed please fred a first draft of the contract for private development pertaining to the Columbia
Heights Townhomes, LLC rental housing project in Columbia Heights. It generally follows the
structure of the preliminary development agreement the parties have already executed. I have been
told that there are some decisions remaining with regard to at least a piece of the project financing,
which may have some impact on the final form of the agreement. In addition, please keep in mind
that this draft is subject to review by all of the interested parties.
It is my presumption that the senior housing contract will look much the same as this agreement and
I am therefore providing Ms. Barnes with a copy. Aside fi-om the obvious need to change some of
the definitions to reflect a different developer and a different set of improvements, I foresee that the
senior housing developer may require some specific language permitting a pledge of the TIF
revenues toward payment of the bonds. Nevertheless, because of the similarities between the
transactions and the fact that I understand Mike Zalk will be representing both developers, it seemed
more efficient to allow him to first make any comments that will be applicable to both sets of
documents before circulating both agreements. Recognizing that there will be some differences,
however, if any of you prefer that I immediately circulate the senior housing agreement, please let
me know.
I would like to suggest that we talk in the very near future to ensure that the appropriate agreements
are being prepared, to ensure that everyone is in agreement as to what needs to happen in order to
complete these transactions, and to clarify exactly how the projects will be f'manced. My preference
would be a meeting, perhaps at Columbia Heights City Hall, so that we have the opportunity to
jointly review any available financing documentation, but I am open to a conference call if that is
more convenient for people.
At a minimum, I think Mike Zalk and/or Amy DuMond, Keith Jans and/or Terry Troy, Shirley
Barnes, a city/EDA representative, and I should be involved. Contingent on your schedules, I
would like to have this conversation this week. I am available all day Wednesday and Thursday,
but am also open next Monday or Tuesday, and would appreciate it if you would each let me know
your thoughts on this and your availability. In the meantime, please let me know if you have any
questions or immediate comments on the document.
DJG- 187090v 1
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DISTRIBUTION LIST
City of Columbia Heights, Minnesota
Real Estate Equities Development Company/Crest View Project
Columbia Heights EDA
Walt Fehst
Ken Anderson
City of Columbia Heights
590 40~ Avenue, NE
Columbia Heights, MN 55421-3835
Counsel to CitvfEDA
Daniel J. Greensweig
Kennedy & Graven, Chartered
470 Pillsbury Center
200 South Sixth Street
Minneapolis, Minnesota 55402
Real Estate Equities Development Company
Terry Troy
Keith Jans
Real Estate Equities Development Company
325 Cedar Street
Suite 400
St. Paul, MN 55101
Counsel to Real Estate Equities and Crest View
Amy DuMond
Oppenheimer, Wolff & Donnelly
Plaza VII
Suite 3300
45 South Seventh Street
Minneapolis, MN 55402-1609
Michael D. Zalk
Oppenheimer Wolff & Donnelly LLP
Plaza VII
45 South Seventh Street
Suite 3400
Minneapolis, MN 55402-1609
Tel: (612) 607-7517
Fax: (612) 607-7100
Tel: (612) 706-3672
Fax: (612) 706-3671
ken. anderson @ ci.columbia-
heights.mn.us
Tel: (612) 337-9231
Fax: (612) 337-9310
dgreensweig @ kennedy-graven.com
Tel: (651) 767-1550
Fax: (651) 227-9001
Tel: (612) 607-7389
Fax: (612) 607-7789
adumond @ oppenheimer.com
Tel: (612) 607-7517
Fax: (612) 607-7100
MZalk@ oppenheimer.com
DIG-178588vl
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Crest View Corporation
Shirley B ames
Crest View Corporation
4444 Reservoir Boulevard N.E.
Columbia Heights, MN 55421
Tel:
Fax:
(612) 782-1611
(612) 782-1649
DJG-178588vl
CL205-11
First Draft
November 13, 2000
CONTRACT FOR PRIVATE DEVELOPMENT
BY AND BETSVEEIN
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
AND
COLUMBIA HEIGHTS HOUSING LIMITED PARTNERSHIP I
Dated ,2000
This document drafted by:
Kennedy & Graven, Chartered
470 Pillsbury Center
Minneapolis, MN 55402
(612) 337-9300
DJG- 189196vl
CL205-11
CONTRACT FOR PRIVATE DEVELOPMENT
THIS AGREEMENT is made as of the ~ day of ,2000 by and
between the Columbia Heights Economic Development Authority, a body corporate and politic (the
"Authority") and Columbia Heights Housing Limited Partnership I, a Minnesota limited partnership
(the "Developer').
W1TNESSETH:
WHEREAS, the Authority has determined that: (i) the Developer has proposed a project to
redevelop certain blighted property within the City of Columbia Heights, Minnesota (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 was appropriate in
this connection to create the Central Business District Redevelopment Property (the "Project") and
Tax Increment Financing District No. 9 (the '°IIF District") within the City pursuant to Minnesota
Statutes, Sections 469.174 to 469.179; and
WHEREAS, the Authority has determined to address such blight and shortage in part
through redevelopment of certain property within the City and the facihtation 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 low or moderate
income;
WHEREAS, the Authority believes 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
the City's 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
NOW, THEREFORE, in consideration of the mutual covenants and obligations of the
Authority and the Developer, each party does hereby represent, covenant and agree with the other as
follows:
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ARTICLE I
Definitions
Section 1.1. Definitions. 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.
"Authorizing Resolution" means the resolution of the Authority, substantially in the form of
the attached Exhibit C, adopted by the Authofity's board of commissioners to authorize the issuance
of the Note.
"Bond Documents" means, collectively, the documents entered into by the City and the
Senior Housing Owner in connection with issuance of the Bonds.
"Bonds" means the tax-exempt 501(c)(3) bonds issued by the City to assist in thnancing the
Senior Housing Project.
"CDBG Agreement" means the agreement dated ,20 between ~
and pertaining to the use of Community Development Block Grant funds for the
Minimum Improvements. .
"City" means the City of Columbia Heights, Minnesota.
"Closing Date" means the date of issuance of the Note.
"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.
DJG-189196vl 2
CI.205-11
"Crest View Advanced Missions I, LLC" means Crest View Advanced Missions I, LLC, a
Colorado limited liability company which is a member of Crest View ONDC I and of which Crest
View Corporation is the single member.
"Crest View ONDC r' means Crest View ONDC I, a Minnesota nonprofit corporation
qualifying as an organization described within Section 501(c)(3) of the Intemal 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.
"Developer" means Columbia Heights Housing Limited Partnership I, 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.
"HOME Agreement" means the agreement dated ,2000 between
pertaining to the use of HOME funds for the Minimum Improvements.
and
"LCA Agreement" means the agreement dated , 2000 between ~ and
pertaining to the use of Livable Communities Act funds for the Minimum Improvements.
"Material" means any effect or change which significantly alters the intended use of the
Property, or increases or decreases the costs of any individual item of the Minimum Improvements
by more than $100,000.
"Maturity Date" means the earliest of the February 1, 2004, the date that the Note has been
paid in tull, or the date that the Note has otherwise been terminated according to its terms.
"MHOP Agreement" means the agreement dated
pertaining to the use of Minneapolis Housing
Minimum Improvements.
,2000 between ~ and
Opportunity Program funds for the
"Minimum Improvements" means the construction on the Property of a 22-unit at'fordable
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 and the
Planned Unit Development Agreement.
"Mortgage" means any mortgage made by the Developer which is secured, in whole or in
part, with the Property and which is a permitted encumbrance pursuant to the provisions of Article
VIII of this Agreement.
"NEr' means NEI College of Technology, a Minnesota nonprofit corporation, which is the
seller of the Property and the owner of real property adjacent to the Property.
DIG-189196vl 3
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"ONDC" means Opportunity Neighborhood Development Corporation, a Minnesota
nonprofit corporation.
"Parcel 2" means the real property on which the Senior Housing Project is to be
constructed and which is described at Exhibit D to this Agreement.
"Planned Unit Development Agreement" means the agreement of such name entered into by
and among the City, the Rental Homing 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 the real property described at Exhibit A to this Agreement. After the
construction of the Minimum Improvements, the t~rm shall mean the Property as so improved.
"Project" means the Authority's Central Business District Redevelopment Project.
"Project Plan" means the Authority's project plan for the Project.
"Note" means a Tax Increment Revenue Note in substantially the form contained in the
Authorizing Resolution.
"Senior Housing Contract for Private Development" means the contract for private
development between the Authority and the Senior Housing Owner providing for construction of
the Senior Housing Project.
"Senior Housing Owner" means Crest View ONDC I, or, on an interim basis, pending
receipt of a determination letter from the Internal Revenue Service regarding the tax-exempt status
of Crest View ON-DC I and/or Crest View Advanced Missions I, LLC.
"Senior Housing Project" means the construction by the Senior Housing Owner on Parcel 2
of a 50-unit senior rental housing facility that complies with the requirements pertaining thereto as
set forth in the Bond Documents, the Senior Housing Contract for Private Development, and the
Planned Unit Development Agreement.
"State" means the State of Minnesota.
'Wax Increment" means that portion of the real property taxes which is paid with respect to
the Property 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.
''Tax Increment District" or '°IIF District" means the Authority's Tax Increment Financing
District No. 9.
DJG-189196vl 4
CL205- ! 1
"Tax Increment Plan" or "TIF Plan" means the Authority's tax increment Financing plan for
the TIF District, as it may be amended.
'Wax Official" means any County assessor, County auditor, County or State board of
equalization, the commissioner of revenue of the State, or any State or federal district court, the tax
court of the State, or the State Supreme Court.
"Unavoidable Delays" means delays beyond 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 Authority in exercising
its fights under this Agreement) which directly restilt in delays.
DIG- 189196v I 5
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ARTICLE II
Representations and Warranties
Section 2.1. Representations by the Authority. The Authority represents and wan'ants that:
(a) The Authority has the power to enter into this Agreement and carry out its
obhgations hereunder.
(b) The activities of the Authority are undertaken to redevelop blighted property within
the City through the creation of housing opportunities for persons of low and moderate income.
Section 2.2. Representations and Warranties by Developer. The Developer represents and
warrants that:
(a) The Developer is a limited partnership in good standing under the laws of Minnesota
and has power to enter into this Agreement.
(b) The Developer has received no notice or communication from any local, State, or
federal official that the activities of the Developer or the Authority pursuant to or envisioned by this
Agreement may be or will be in violation of any environmental law or regulation. The Developer is
aware of no facts the existence of which would cause the Developer 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 contlicts 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 the Developer is now a party or
by which it is bound, or constitutes a default under any of the foregoing.
(d) The development of the Minimum Improvements would not occur but for the tax
increment t~ancing assistance being provided hereunder.
DIG-189196v! 6
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ARTICLE ITl
Public Assistance and Other Undertakings
Section 3.1. Conveyance of the Development Property. As of the date of this Agreement,
the Developer owns or has entered into a purchase agreement to acquire fee title to the Property,
having acquired title in expectation of the assistance being provided hereunder. The Authority has
no obligation to acquire the Property or any portion thereof. IS THIS CORRECT OR IS THERE
NEED FOR CONVEYANCE FROM AUTHORITY TO DEVELOPER?
Section 3.2. Land Acquisition and Site Improvements. (a) Subject to the terms and
conditions of the Note Agreement, and in order to make development of the Minimum
Improvements economically feasible, the Autho'rity shall reimburse the Developer for up to
$. of the costs of acquiring the Property (the "Land Acquisition Costs"), and up to
$ of the costs of making public improvements designed to serve the Minimum
Improvements, including (the "Site Improvements) (the costs of making the Site
Improvements are referred to herein as the "Site Improvement Costs"). (Collectively, the Site
Improvement Costs and the Land Acquisition Costs shall be known herein as the "Land Acquisition
and Site Improvement Costs"). In order to make such reimbursement, the Authority shall issue and
the Developer shall purchase the' Note in substantially the form set tbrth in the Authorizing
Resolution attached as Exhibit C. The Authority and the Developer agree that the consideration
from the Developer for the purchase of the Note shall consist of the Developer's payment of the
Land Acquisition and Site Improvement Costs.
(b) The Authority shall deliver the Note upon receipt from the Developer of a payment
request certificate signed by its duly authorized representative stating: (i) that the Developer has
paid Land Acquisition Costs in at least the amount of $ and Site Improvement Costs
in at least the amount of $ ; (ii) that no Event of Default has occurred and is
continuing under this Agreement; and (iii) that the Developer has received a Certificate of
Completion pursuant to Section 4.4 of this Agreement. The payment request certificate must be
accompanied by evidence satisfactory to the Authority that the Land Acquisition Costs and Site
Improvement Costs have been incurred and paid by the Developer.
(c) The Authority shall not be obligated to make any payment under the Note ff there is an
Event of Default on the Developer's part under this Agreement that has not been cured as of the
date such payment is otherwise due.
(d) The Authority makes no warranties or representations that Available Tax Increment
(as defined in the Authorizing Resolution) will be sufficient to pay the Land Acquisition and Site
Improvement Costs or interest thereon. The Developer agrees and understands that Available Tax
Increment is subject to calculation by the County and change in State law, and that all or a portion
of Land Acquisition and Site Improvement Costs may remain unpaid 'after the Maturity Date.
Section 3.4. Pa'oztent 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
DIG- 189196vl 7
CL205-11
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 the date of this Agreement, the Developer paid to the Authority the amoum of
$10,000, such amount to be applied to Administrative Costs. The Developer shall further from time
to time pay to the City or 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 3.4. The provisions of this Section 3.4 shall survive termination of this Agreement.
(b) The terms of this Section 3.4 are for the sole benefit of the Authority, and nothing in
this Section 3.4 shall be construed to limit the ability of the City or the Authority to lawfully recover
Administrative Costs from Tax Increment during oi- after the termination of this Agreement.
Section 3.5. Records. The Authority may at all reasonable times, alter reasonable notice,
inspect, examine and copy all books and records of the Developer relating to the Minimum
Improvements. The Developer shall use its best efforts to cause the contractor or contractors, all
subcontractors, and their agents and lenders to make their books and records relating to the Site
Improvements available to the Authority, upon reasonable notice, for inspection, examination and
audit. These records shall be kept and maintained by the Developer until four years after the
Maturity Date.
Section 3.6. Soil Conditions. The Developer acknowledges that the Authority makes no
representations or warranties as to the condition of the soils on the Property or its fitness for
construction of the Minimum Improvements or any other purpose for which the Developer may
make use of the Property. The Developer further agrees that it will indemnity, defend, and hold
harmless the Authority, the City, and their 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.
DIG-189196vl 8
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ARTICLE IV
Construction of Minimum Improvement~
Section 4.1. Construction of Minimum Improvement~. (a) The Developer will construct the
Minimum Improvements on the Property in accordance with the Construction Plans. At all times
prior to the Maturity Date, the Developer will operate, maintain, preserve, and keep the Minimum
Improvements, with the appurtenances and every part and parcel thereof, in good repair and
condition. The Authority shall have no obligation to operate or maintain the Minimum
Improvements.
(b) The Developer will construct the Minimum Improvements in accordance with all
local, State, and federal energy-conservation laws 6r regulations.
(c) The Developer will 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 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 the
Developer or its business which may require changes in construction of the Minimum
Improvements.
Section 4.2. Construction Plans. (a) Before beginning construction of the Minimum
Improvements, the Developer shall submit Construction Plans to the Authority. The Construction
Plans shall provide for the construction of the Minimum Improvements and shall be in conformity
this Agreement, the TIF Plan, the Planned Unit Development Agreement, and all applicable State
and local laws and regulations. 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
Project Plan and the T[F 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
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 Authority
shall relieve the Developer of the obligation to comply with the terms of this Agreement, the
Development Plan, the TIF Plan, the Planned Unit Development Agreement, or applicable federal,
state and local laws, ordinances, rules and regulations, or to construct the Minimum Improvements
in accordance therewith. No approval by the Authority shall constitute a waiver of an Event of
Default hereunder, ff approval of the Construction Plans is requested by the Developer in writing at
the time of submission, such Construction Plans shall be deemed approved unless rejected in
DIG-189196vl 9
CL205-11
writing by the Authority, in whole or in part. Such rejections shall set forth in detail the masons
therefore, and shall be made within fourteen (14) days after the date of their receipt by the
Authority. If the Authority rejects any Construction Plans in whole or in part, the Developer shall
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 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 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 Authority, the Developer shall submit the proposed change to the Authority for
its 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 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 Authority unless rejected, in whole or in part, by written notice by the Authority to
the Developer, 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 the construction of the Minimum Improvements by no later than
20 All work with respect to the Minimum Improvements to be constructed or provided by
the Developer 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 this Agreement relating solely to
the obligations of the Developer to construct the Minimum Improvements (including the dates for
beginning and completion thereof), the Authority will furnish the Developer with a certificate, in
substantially the form set fbrth at Exhibit B to this Agreement, evidencing the conclusive
determination of satisfaction and termination of the agreements and covenants in this Agreement
with respect to the obligations of the Developer, and its successors and assigns, to construct the
Minimum Improvements and the dates for the beginning and completion thereof. Such certification
and such determination shall not constitute evidence of compliance with or satisfaction of any
obligation of the Developer 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 Authority shall, within thirty (30) days after written request by
the Developer, provide the Developer with a written statement, indicating in adequate detail in what
respects the Developer 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 to take or perform in order to obtain
such certification.
(c) The construction of the Minimum Improvements shall be deemed to be substantially
DIG-189196vl '10
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completed when the Developer has received an occupying permit from the responsible inspecting
authority for all residential units, common areas, and other portions of the Minimum Improvements.
Section 4.5. Construction of Senior Housing Project. The Developer shall cause the Senior
Housing Owner to enter into and construct the Senior Housing Project in accordance with the
Senior Housing Contract for Private Development.
DIG-189196vl 1 1
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ARTICLE V
Insurance
5.1. Insurance. (a) Upon commencement of construction and continuing until at least the
Maturity Date, the Developer shall maintain, 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 coveting such risks as are ordinarily insured against by similar
businesses;
(ii) Comprehensive general pubhc liabihty 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, 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 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 Authority at least thirty (30) days before the cancellation
or modification becomes effective. In lieu of separate policies, the Developer may maintain a single
policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein,
in which event the Developer shall 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) The Developer agrees 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 fn-e or other casualty. In such event the Developer will forthwith 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 the net proceeds
of any insurance relating to such damage received to the payment or reimbursement of the costs
thereof.
The Developer shall complete the repair, reconstruction, and restoration of the Minimum
Improvements, whether or not the net proceeds of insurance received by the Developer for such
DJG-lS9196vl 12
C1.205-11
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 the Developer.
(e) The parties hereto agree that all of the provisions set forth in this Article V shall
terminate upon the Maturity Date.
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ARTICLE VI
Use of Tax Increment
Section 6.1. Use of Tax Increments. Except for its obligations under this Agreement and
the Note regarding Tax Increment, the Authority 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 the
Authority shall have no obligation to the Developer or any other person with respect to the use of
such Tax Increment.
Section 6.2. Right to Collect Delinquent Taxes. The Developer acknowledges that the
Authority is providing substantial aid and assistance in furtherance of the development of the
Property. The Developer understands the Authority's ability to assist the Developer in the
manner specified in this Agreement is directly dependent upon the prompt and timely payment of
real estate taxes. To that end, the Developer agrees for itself, its successors and assigns, in
addition to the obligation pursuant to statute to pay real estate taxes, that it is also obligated by
reason of this Agreement to pay before delinquency all real estate taxes assessed against the
Property and the Minimum Improvements. The Developer acknowledges that this obligation
creates a contractual fight on behalf of the Authority to sue the Developer or its successors and
assigns to collect delinquent real estate taxes and any penalty or interest thereon and to pay over
the same as a tax payment to the Anoka county auditor. In any such suit, the Authority shall also
be entitled to recover its costs, expenses and reasonable attorney fees.
D/G- ! 89196vl 14-
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ARTICLE VII
Finandn~
Section 7.1. Mortgage Financing. (a) Before commencement of construction of the
Minimum Improvements, the Developer shall submit to 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 acquisition of the Property, construction of
the Minimum Improvements, and fulfillment of the Developer's responsibilities under the Planned
Unit Development Agreement. Such commitments may be submitted as short term tinancing, long
term mortgage fmancing, 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 f'mancing shall be subject only to such' conditions as are normal and customary in the.
mortgage banking industry.
(b) If the Authority finds that the mortgage financing is sufficiently committed and
adequate to meet the Developer's obligations under Section 7.1 then 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 Authority is
provided the evidence of mortgage financing. A failure by the Authority to respond to such
evidence of mortgage financing shall be deemed to constitute an approval hereunder. If the
Authority rejects the evidence of mortgage financing as inadequate, it shall do so in writing
specifying the basis for the rejection. In any event the Developer shall submit adequate evidence of
mortgage f'mancing 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 Authority
to receive copies of any notice of default received by the Developer from the holder of such
Mortgage. Thereafter, the Authority shall have the right, but not the obligation, to cure any such
default on behalf of the Developer within such cure periods as are available to the Developer under
the Mortgage documents.
DIG- 189196vi 15
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ARTICLE vm
Prohibitions Against Assignment and Transfer; Indemnification
Section 8.1. Representation as to Development. The Developer represents and agrees that
its undertakings pursuant to this Agreement are for the purpose of development of the Property.
Section 8.2. Release and Indemnification Covenants. (a) Except for any willful
misrepresentation or any willful or wanton misconduct or' negligence of the following named
parties, the Developer agrees to protect and defend the City, the Authority, and their governing body
members, officers, agents, servants, and employees, now or forever, and further agrees to hold the
aforesaid harmless from any claim, demand, suit, action or other proceeding whatsoever by any
person or entity whatsoever arising or purportedly' arising/'rom this Agreement, or the transactions
contemplated hereby or the acquisition, construction, installation, ownership, and operation of the
Minimum Improvements.
(b) Except for any negligent act of the following named parties, the City, the Authority,
and their governing body members, officers, agents, servants, and employees shall not be liable for
any damage or injury to the persons or property of the Developer or their panners, officers, agents,
servants, employees, or to any other person who may be about the Property or Minimum
Improvements.
(c) All covenants, stipulations, promises, agreements, and obligations of the City or the
Authority contained herein shall be deemed to be the covenants, stipulations, promises, agreements,
and obligations of the City and the Authority, respectively, and not of any governing body member,
officer, agent, servant, or employee of the City or the Authority in the individual capacity thereof.
(d) The provisions of this Section 8.2 shall survive temaination of this Agreement.
Section 8.3. Prohibition Against Developer's Transfer of Property and Assignment of
Agreement. (a) The Developer represents and agrees that prior Maturity Date, except only by
way of security for, and only for, the purpose of obtaining financing necessary to enable the
Developer or any successor in interest to the Development Property, or any pan thereof, to
perform its obligations with respect to making the Minimum Improvements under this
Agreement, and any other purpose authorized by this Agreement, the Developer has not made or
created and will not make or create or suffer to be made or created any total or partial sale,
assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of
or with respect to the Agreement or the Property or any part thereof or any interest therein
(except a lease to a residential tenant of any residential unit within the Minimum Improvements),
or any contract or agreement to do any of the same, without the prior written approval of the
Authority. Any such transfer shall be subject to the provisions of this Agreement.
(b) Prior to the Maturity Date, in the event the Developer, upon transfer or
assignment of the Property or any portion thereof, seeks to be released from its obligations under
this Agreement as to the portion of the Property that is transferred or assigned, the Authority
DJG- 189196v I 16
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shall be entitled to require, except as otherwise provided in the Agreement, as conditions to any
such release that:
(i) Any proposed transferee shall have the qualifications and financial
responsibility, in the sole judgment of the Authority, necessary and adequate to fulfill the
obligations undertaken in this Agreement by the Developer as to the portion of the
Property to be transferred.
(ii) Any proposed transferee, by instrument in writing satisfactory to the
Authority and in form recordable among the land records, shall, for itself and its
successors and assigns, and expressly for the benefit of the Authority, have expressly
assumed all of the obligations of the Developer under this Agreement as to the portion of
the Property to be transferred and agreed to be subject to all the conditions and
restrictions to which the Developer is subiect as to such portion; provided, however, that
the fact that any transferee of, or any other successor in interest whatsoever to, the
Property, or any part thereof, shall not, for whatever reason, have assumed such
obligations or so agreed, and shall not (unless and only to the extent otherwise
specifically provided, in this Agreement or agreed to in writing by the Authority) deprive
the Authority of any rights or remedies or controls with respect to the Property or any
part thereof or the construction of the Minimum Improvements; it being the intent of the
parties as expressed in this Agreement that (to the fullest extent permitted at law'and in
equity and excepting only in the manner and to the extent specifically provided otherwise
in this Agreement) no transfer of, or change with respect to, ownership in the
Development Property or any part thereof, or any interest therein, however consummated
or occurring, and whether voluntary or involuntary, shall operate, legally or practically, to
deprive or limit the Authority of or with respect to any rights or remedies on controls
provided in or resulting from this Agreement with respect to the Minimum Improvements
that the Authority would have had, had there been no such transfer or change. In the
absence of specific written agreement by the Authority to the contrary, no such transfer
or approval by the Authority thereof shall be deemed to relieve the Developer, or any
other party bound in any way by this Agreement or otherwise with respect to the
construction of the Minimum Improvements, from any of its obligations with respect
thereto.
(iii) Any and all instruments and other legal documents involved in effecting
the transfer of any interest in this Agreement or the Property governed by this Article
VIII, shall be in a form reasonably satisfactory to the Authority.
In the event the foregoing conditions are satisfied, then the Developer shall be released from its
obligation under this Agreement, as to the portion of the Property that is transferred, assigned, or
otherwise conveyed.
DJG- 189196v I 17
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ARTICLE IX
Events of Default
Section 9.1. Events of Default Defined. The following shall be "Events of Default" under
this Agreement and the term "Event of Default" shall mean, whenever it is used in this Agreement
(unless the context otherwise provides), any failure by any party to observe or perform any other
covenant, condition, obligation or agreement on its part tO be observed or performed hereunder, or
under the Planned Unit Development Agreement, the HOME Agreement, the CDBG Agreement,
LCA Agreement, or the MHOP Agreement, provided that when such failure or breach does not
involve the payment of money to the Authority, such failure or breach shall not constitute an
"Event of Default" if corrective action is instituted by or on behalf of such party within such
thirty (30) day period and diligently pursued until the earlier of the date such default is corrected
or one hundred eighty (180) days has elapsed. Nothing in this Article IX shall limit the rights of
the Authority to exercise any remedy to which it is entitled under any other provision of this
Agreement or the Planned Unit Development Agreement.
Section 9.2. Remedies on Default. Whenever any Event of Default referred to in Section
9.1 of this Agreement occurs, the non-defaulting party may:
(a) suspend its performance under this Agreement until it receives assurances that the
defaulting party will cure its default and continue its performance under this Agreement;
(b) cancel and rescind or terminate this Agreement and the Note; and
(c) take whatever other action, including legal, equitable, or administrative action,
which may appear necessary or desirable to collect any payments due under this Agreement, or to
enforce performance and observance of any obligation, agreement, or covenant under this
Agreement.
Section 9.3. No Remedy Exclusive. No remedy herein conferred upon or reserved to the
any party in this Agreement is intended to be exclusive of any other available remedy or remedies,
but each and every such remedy shall be cumulative and shall be in addition to every other remedy
given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay
or omission to exercise any right or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power may be exercised
from time to time and as often as may be deemed expedient. In order to entitle the Authority to
exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as
may be required in this Article IX.
Section 9.4. No Additional Waiver Implied by One Waiver. In the event any agreement
contained in this Agreement should be breached by any party and thereafter waived by another
party, such waiver shall be limited to the particular breach so waived and shall not be deemed to
waive any other concurrent, previous or subsequent breach hereunder.
DIG-lag196vl 18
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ARTICLE X
Additional Provisions
Section 10.1. Conflict of Interests: Authority and Representatives Not Individually Liable.
The Authority and the Developer, to the best of their respective knowledge, represent and agree that
no member, official, or employee of the City or the Authority shall have any personal interest, direct
or indirect, in this Agreement, nor shall any such member, official, or employee participate in any
decision relating to this Agreement which affects his or her personal interests or the interests of any
corporation, partnership, or association in which he or she is directly or indirectly interested. No
member, official, or employee of the City or the Authority shall be personally liable to the
Developer or any successor in interest, in the event of any default or breach by the Authority, or for
any amount which may become due to the Devel6per or successor or on any obligations under the
terms of this Agreement.
Section 10.2. Equal Employment Opportunity. The Developer, for itself and its successors
and assigns, agrees that during the construction of the Minimum Improvements provided for in this
Agreement it shall comply with all applicable federal, State, and local equal employment and non-
discrimination laws and regulations.
Section 10.3. Restrictions on Use. The Developer agrees that prior to the Maturity Date, it,
and its successors and assigns: (a) shall use the Property solely for the purpose of constructing and
operating housing facihties pursuant to the terms of this Agreement; Co) shall not discriminate upon
the basis of race, color, creed, sex, national origin, or any other classification prohibited by law in
the sale, lease, or rental, or in the use or occupancy of the Property or any improvements erected or
to be erected thereon, or any part thereof; and (c) shall otherwise comply with the restrictions on use
set forth in this Agreement.
Section 10.4. Provisions Not Merged With Deed. None of the provisions of this Agreement .
are intended to or shall be merged by reason of any deed transferring any interest in the Property
and any such deed shall not be deemed to affect or impair the provisions and covenants of this
Agreement.
Section 10.5. Titles of Articles and Sections. Any titles of the several parts, Articles, and
Sections of this Agreement are inserted for convenience of reference only and shall be disregarded
in construing or interpreting any of its provisions.
Section 10.6. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand, or other communication under this Agreement by either party to the
other shall be sufficiently given or delivered it' it is dispatched by registered or certified mail,
postage prepaid, return receipt requested, or delivered personally; and
(a) in the case of the Authority, is addressed to or delivered personally to the Authority
at 590 40th Avenue N.E., Columbia Heights, MN, Atto: Executive Director; and
DJG-189196vl 19
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(b) in the case of the Developer, is addressed to or delivered and personally to Columbia
Heights Housing Limited Parmership I, 325 Cedar Street, Suite 400, St. Paul, MN 55101;
or at such other address with respect to either such party as that party may, from time to time,
designate in writing and forward to the other as provided in this Section 10.6.
Section 10.7. Counterparts: Modifications. This Agreement may be executed in any
number of counterparts, each of which shall constitute one and the same instrument. This
Agreement may not be modified, waived, or otherwise amended except by a writing signed by the
Developer and the Authority.
Section 10.8. Attorney Fees. Whenever any Event of Default occurs and if the Authority
shall employ attorneys or incur other expenses for the collection of payments due or to become due,
or for the enforcement of performance or observance of any obligation or agreement on the part of
the Developer under this Agreement, the Developer agrees that it shall, within ten (10) days of
written demand by the Authority, pay to the Authority the reasonable fees of such attorneys and
such other expenses so incurred by the Authority.
Section 10.9. Continuation of Certain Obligations. Nothing in this Agreement shall act to
modify, amend, or otherwise relieve the Developer of its obligations and undertakings as stated in
the Planned Unit Development Agreement, or any other agreement to which the Developer, and the
City or the Authority, are parties.
Section 10.10. Governing Law: Venue. This Agreement shall be construed in accordance
with the laws of the State of Minnesota. Any dispute arising from this Agreement shall be heard in
the state or federal courts of Minnesota, and all parties waive any objection to the jurisdiction
thereof, whether based on convenience or otherwise.
Section 10.11. Termination of Aereement. Upon termination of this Agreement, no party
hereto shall have any obligation or fights hereunder and this Agreement shall be of no further force
and effect, except as such provisions herein are expressly stated to survive such termination.
D/G-lSOI96vl 20
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IN WITNESS WHEREOF the Authority and the Developer have caused this Agreement
to be duly executed in their name and on their behalf, with actual execution on the dates set forth
below.
COLUMBIA HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY
By
Its
By
Its
DATE: ,2000
STATE OF MINNESOTA )
) SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this ~ day of ,2000
by and , the and
and of the Columbia Heights Economic Development
Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the
Authority.
Notary Public
DSG- 189196vl 21
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COLUMB IA HEIGHTS HOUSING
LIMITED PARTNERSHIP I
DATE:
,2000
By
Its
STATE OF MINNESOTA )
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
by and , the
of Columbia Heights Housing Limited Partnership
limited partnership, on behalf of the partnership.
,2000
and
I, a Minnesota
Notary Public
DJG-189196vl 22
CL2,05- I 1
EXHIBIT A
NEED LEGAL DESCRIPTION OF RENTAL HOUSING PROJECT PROPERTY HERE
DIG- 189196vl fit- !
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EXHIBIT B
CERTIFICATE OF COMPLETION
The undersigned hereby certifies that Columbia Heights Housing Limited Partnership I
(the "Developer") has fully complied with its obligations under Articles 1211 and IV of that
document titled "Contract for Private Development," dated , 2000 between the
Columbia Heights Economic Development Authority and the Developer ("Contract"), with
respect to construction of the Minimum Improvements in accordance with the Construction
Plans, and that the Developer is released and forever discharged from its obligations to construct
of the Minimum Improvements under Articles IH and IV of the Contract, provided that nothing
herein releases any other obligations of the Developer under the Contract.
DATE: ,2000
COLUMBIA HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY
By
Its
By
Its
STATE OF MINNESOTA )
) SS.
COUNTY OF )
The foregoing instrument was acknowledged before me this ~ day of ,2000
by and , the and
and of the Columbia Heights Economic Development
Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the
Authority.
This document drafted by:
Kennedy & Graven, Chartered
470 Pillsbury Center
Minneapolis, MN 55402
(612) 337-9300
DJG- 189196vl B- 1
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EXHIBIT C
Authorizing Resolution
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
RESOLUTION NO.
RESOLUTION APPROVING CONTRACT FOR PRIVATE DEVELOPMENT AND
AWARDING THE SALE OF, AND PROVIDING THE FORM, TERMS, COVENANTS
AND DIRECTIONS FOR THE ISSUANCE OF ITS $ TAXABLE TAX
INCREMENT REVENUE NOTE, SERIES 2000.
BE IT RESOLVED BY the Board of Commissioners ("Board") of the Columbia Heights
Economic Development Authority (the "Authority") as follows:
Section 1. Authorization: Award of Sale.
1.01. Authorization. The Authority has heretotbre approved the establishment of Tax
Increment Financing District No. 9 (the "TIF District") within the Central Business District
Redevelopment Project (the "Project"), and has adopted a tax increment financing plan for the
purpose of financing certain improvements within the Project.
Pursuant to Minnesota Statutes, Section 469.178, the Authority is authorized to issue and
sell its bonds for the purpose of financing a portion of the public development costs of the
Development District. Such bonds are payable from all or any portion of revenues derived from
the TIF District and pledged to the payment of the bonds. The Authority hereby finds and
determines that it is in the best interests of the Authority that it issue and sell its
$ Taxable Tax Increment Revenue Note, Series 2000 (the "Note") for the
purpose of financing certain costs of the Project.
1.02. Agreement Approved; Issuance, Sale.. and Terms of the Note. The Authority
hereby approves the Contract for Private Development ("Agreement") between the Authority
and Columbia Heights Housing Limited Partnership I ("Developer"), and authorizes the President
and Executive Director to execute such Agreement in substantially the form on file with
Authority, subject to modifications that do not alter the substance of the transaction and are
approved by such officials, provided that execution of the Agreement by such officials is
conclusive evidence of their approval.
The Note shall be delivered to the Developer. The Note is to be issued in accordance with
the Agreement. The Note shall be dated as of the date of delivery, and shall bear interest at the rate
of % per annum to the earlier of maturity or prepayment. The Authority shall receive in
exchange for the sale of the Note the agreement of the Developer to pay the Land Acquisition and
Site Improvement Costs as defined in the Agreement.
DIG-189196vl C- 1
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1.03. Optional Redemption. The Authority may prepay the Note in whole or in part,
without premium or penalty, on any date. If prepayment is in part, mounts prepaid will be
applied first to the outstanding principal amount of the Note and then to accrued interest.
Section 2. Form of Note. The Note shall be in substantially the following form, with
the blanks to be properly filled in and the principal amount and payment schedule adjusted as of
the date of issue:
UNITED STATE OF AMERICA
STATE OF MINNESOTA
COUNTY OF ANOKA
COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY
No. R-1 $
TAXABLE TAX INCREMENT REVENUE NOTE
SERIES 2000
Date
Rate of Ori~oinal Issue
% ,2000
Principal Amount:
Registered Owner:
The Columbia Heights Economic Development Authority (the "Authority"), for value
received, certifies that it is indebted and hereby promises to pay to the registered owner specified
above, or registered assigns (the "Owner"), but solely from the sources, to the extent and in the
manner hereinafter identified, the principal amount specified above together with interest on the
outstanding principai sum from time to time at the interest rate specified above, payable on each
February 1 and August 1 ("Payment Dates"), commencing August 1, 2003 and continuing
through February 1, 2024. Payments shall be applied first to accrued interest, and then to unpaid
principal.
Payments are payable by mail to the address of the Owner or such other address as the
Owner may designate upon 30 days written notice to the Authority. Payments on this Note are
payable in any coin or currency of the United Sates of America which, on the Payment Date, is
legal tender for the payment of public and private debts.
Interest at the rate stated herein shall accrue on the unpaid principal, commencing on the
date of original issue. Interest shall be computed on the basis of a year of 365 days and charged
for actual days principal is unpaid.
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This Note is subject to prepayment in whole or in part at the option of the Authority on
any date.
This Note is one of an authorized issue in the total original principal amount of
$. to aid in financing certain development costs of a project undertaken by the
Authority pursuant to Minnesota Statutes, Sections 469.090 through 469.1081, and is issued
pursuant to an authorizing resolution (the "Resolution") duly adopted by the Authority on
,2000, and pursuant to and in full conformity with the Constitution and laws of the
State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.179. This Note is a
limited obligation of the Authority which is payable solely from Available Tax Increment as
defined in the Resolution, the terms of which are hereby incorporated by reference. This Note
and the interest hereon shall not be deemed to constitute a general obligation of the State of
Minnesota or any political subdivision thereof, including, without limitation, the Authority.
Neither the State of Minnesota nor any political subdivision thereof shall be obligated to pay the
principal of or interest on this Note or other costs incident hereto except out of moneys pledged
thereto under the Resolution, and neither the full faith and credit nor the taxing power of the
State of Minnesota or any political subdivision thereof is pledged to the payment of the principal
of or interest on this Note or other costs incident hereto.
The Authority shall pay to the Owner on each Payment Date the amount of Available Tax
Increment. To the extent that, on any Payment Date, the Authority does not have on hand
sufficient Available Tax Increment together with capitalized interest to make the scheduled
payment, the amount of deficiency shall be deferred and paid, without interest thereon, to the
extent possible on the next Payment Date on which the Authority has received Available Tax
Increment sufficient to do so. If any amount payable under this Note has not been paid by
February 1, 2024 after any payment is made on such date, any amount not paid shall be forgiven
and the Authority shall have no further liability with respect thereto.
If as of any Payment Date there is an uncured Event of Default under the Contract for
Private Development between the Authority and to Columbia Heights Housing Limited
Partnership I ("Developer") dated as of ,2000 (the "Agreement"), the Authority may
withhold Available Tax Increment otherwise payable on such Payment Date. It' the default is
cured in accordance with the Agreement, the Available Tax Increment withheld shall be deferred
and paid, without interest thereon, on the next Payment Date after the default is cured.
This Note is issuable only as a fully registered note without coupons. As provided in the
Resolution, and subject to certain limitations set forth therein, this Note is transferable upon the
books of the Authority kept for that purpose at the principal office of the Authority's Executive
Director, by the Owner hereof in person or by the Owner's attorney duly authorized in writing,
upon surrender of this Note together with a written instrument of transfer satisfactory to the
Authority, duly executed by the Owner. Upon such transfer or exchange and the payment by the
Owner of any tax, fee, or governmental charge required to be paid by the Authority with respect
to such transfer or exchange, there will be issued in the name of the transferee a new Note of the
same aggregate principal amount, bearing interest at the same rate and maturing on the same
dates.
DJG-189196vl C-3
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This Note shall not be transferred to any person other than an affiliate or other related
entity, of the Owner or to the Developer unless the Authority has been provided with an opinion
of counsel or a certificate of the transferor, in a form satisfactory to the Authority, that such
transfer is exempt from registration and prospectus delivery requirements of federal and
applicable state securities laws.
IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things
required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen,
and to be performed in order to make this Note a valid and binding limited obligation of the
Authority according to its terms, have been done, do exist, have happened, and have been
performed in due form, time and manner as so required.
This Note shall not be valid or become obligatory for any purpose until the Certificate of
Authentication hereon shall have been manually signed by the Registrar.
IN WITNESS WHEREOF, the Board of Commissioners of the Columbia Heights
Economic Development Authority has caused this Note to be executed with the manual
signatures of its President and Executive Director, all as of the Date of Original Issue specified
above.
COLUMB IA HEIGHTS ECONOMIC
DEVELOPMENT AUTHORITY
Executive Director
President
REGISTRATION PROVISIONS
The ownership of the unpaid balance of the within Note is registered in the bond register
of the Executive Director, in the name of the person last listed below.
DJG-189196vl C-4
CL2.05-11
Date of
Registration
Registered Owner
Signature of
Executive Director
Section 3. Terms. Execution and Delivery.
3.01. Denomination. Payment. The Note shall be issued as a single typewritten note
numbered R-1.
The Note shall be issuable only in fully registered form. Principal of and interest on the
Note shall be payable by check or draft issued by the Registrar described herein.
3.02. Dates: Interest Payment Dates. Principal of and interest on the Note shall be
payable by mail to the owner of record thereof as of the close of business on the fifteenth day of
the month preceding the Payment Date, whether or not such day is a business day.
3.03. Reeistration. The Authority hereby appoints the Executive Director to perform
the functions of registrar, transfer agent and paying agent (the "Registrar"). The effect of
registration and the rights and duties of the Authority and the Registrar with respect thereto shall
be as follows:
(a) Register. The Registrar shall keep at its office a bond register in which the
Registrar shall provide for the registration of ownership of the Note and the registration of
transfers and exchanges of the Note.
(b) Transfer of Note. Upon surrender for transfer of the Note duly endorsed by the
registered owner thereof or accompanied by a written instrument of transfer, in form reasonably
satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly
authorized by the registered owner in writing, the Registrar shall authenticate and deliver, in the
name of the designated transferee or transferees, a new Note of a like aggregate principal amount
and maturity, as requested by the transferor. Notwithstanding the foregoing, the Note shall not
be transferred to any person (other than an affiliate, or other related entity, of the Owner, or the
Developer) unless the Authority has been provided with an opinion of counsel or a certificate of
the transferor, in a form satisfactory to the Authority, that such transfer is exempt from
registration and prospectus delivery requirements of federal and applicable state securities laws.
The Registrar may close the books for registration of any transfer after the fifteenth day of the
month preceding each Payment Date and until such Payment Date.
(c) Cancellation. The Note surrendered upon any transfer shall be promptly
cancelled by the Registrar and thereafter disposed of as directed by the Authority.
(d) Improper or Unauthorized Transfer. When the Note is presented to the Registrar
for transfer, the Registrar may refuse to transfer the same until it is satisfied that the endorsement
on such Note or separate instrument of transfer is legally authorized. The Registrar shall incur
DIG-189196vl C-5
CL205- I 1
no liability for its refusal, in good faith, to make transfers which it, in its judgment, deems
improper or unauthorized.
(e) Persons Deemed Owners. The Authority and the Registrar may treat the person in
whose name the Note is at any time registered in the bond register as the absolute owner of the
Note, whether the Note shall be overdue or not, for the purpose of receiving payment of, or on
account of, the principal of and interest on such Note and for all other purposes, and all such
payments so made to any such registered owner or upon the owner's order shall be valid and
effectual to satisfy and discharge the liability of the Authority upon such Note to the extent of the
sum or sums so paid.
(f) Taxes. Fees and Charges. For every transfer or exchange of the Note, the
Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for
any tax, fee, or other governmental charge reqUired to be paid with respect to such transfer or
exchange.
(g) Mutilated, Lost. Stolen or Destroyed Note. In case any Note shall become
mutilated or be lost, stolen, or destroyed, the Registrar shall deliver a new Note of like amount,
maturity dates and tenor in exchange and substitution for and upon cancellation of such mutilated
Note or in lieu of and in substitution for such Note lost, stolen, or destroyed, upon the payment
of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case
the Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it
that such Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing
to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory
to it, in which both the Authority and the Registrar shall be named as obligees. The Note so
surrendered to the Registrar shall be cancelled by it and evidence of such cancellation shall be
given to the Authority. It' the mutilated, lost, stolen, or destroyed Note has already matured or
been called for redemption in accordance with its terms, it shall not be necessary to issue a new
Note prior to payment.
(h) Prepayment. In the event the Note is prepaid, notice thereof will be given by the
Registrar by mailing a copy of the redemption notice by first class mall (postage prepaid) not
more than 60 and not less than 30 days prior to the date fixed for prepayment to the registered
owner of each Note to be prepaid at the address shown on the registration books kept by the
Registrar and by publishing the notice if required by law. Failure to give notice by publication or
by mail to any registered owner, or any defect therein, will not affect the validity of the
proceedings for the prepayment of Note. If the Note so called for prepayment it will cease to
bear interest after the specified redemption date, provided that the funds for the prepayment are
on deposit with the place of payment at that time.
3.04. Preparation and Delivery. The Note shall be prepared under the direction of the
Authority's Executive Director and shall be executed on behalf of the Authority by the signatures
of its President and Executive Director. In case any officer whose signature shall appear on the
Note shall cease to be such officer before the delivery of the Note, such signature shall
nevertheless be valid and sufficient for all purposes, the same as if such officer had remained in
office until delivery. When the Note has been so executed, it shall be delivered by the Executive
DIG- 189196vl C- 6
C[205-11
Director to the Owner or Owners thereof upon payment of purchase price and satisfactions with
the conditions of delivery under Section 3.3 of the Agreement, and the purchaser shall not be
obligated to see to the application of the purchase price.
Section 4. Security Provisions.
4.01. Pledge. The Authority hereby pledges to the payment of the principal of and
interest on the Note all Available Tax Increment, which term means 89.78% of the Tax
Increment (as defined in the Agreement) that is received by the Authority in the six-month
period immediately before each Payment Date.
4.02. Bond Fund. Until the date the Note is no longer outstanding and no principal thereof
or interest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the
Authority shall maintain a separate and special "Bond Fund" to be used for no purpose other than
the payment of the principal of and interest on the Note. The Authority irrevocably agrees to
appropriate to the Bond Fund in each year Available Tax Increment necessary to pay principal and
interest due on the Note in such year. Any mounts remaining in the Bond Fund shall l~e transferred
to the Authority account for its TIF District No. 9 upon the payment of all principal and interest to
be paid with respect to the Note.
Section 5. Certification of Proceedings.
5.01. Certification of Proceedings. The officers of the Authority are hereby authorized
and directed to prepare and furnish to the Owner of the Note certified copies of all proceedings
and records of the Authority, and such other affidavits, certificates, and information as may be
required to show the facts relating to the legality and marketability of the Note as the same
appear from the books and records under their custody and control or as otherwise known to
them, and all such certified copies, certificates, and affidavits, including any heretofore
furnished, shall be deemed representations of the Authority as to the facts recited therein.
Section 6. Effective Date. This resolution shall be effective upon full execution of the
Agreement.
Adopted this ~ day of ,2000.
President
Executive Director
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EXHIBIT D
NEED LEGAL DESCRIPTION OF SENIOR HOUSING PROPERTY HERE
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