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HomeMy WebLinkAboutEDA AGN 06-03-13AGENDA COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY Monday June 3, 2013 6:30pm City Hall, Conference room I 1. Call to Order Gary L. Peterson President Bobby Williams Vice President Brace Nawrocki Secretary /Treasurer Donna Schmitt Tammera Diehm Gerry Herringer Marlaine Szurek 2. Pledge of Allegiance CONSENT AGENDA 3. Approve Minutes of May 6, 2013 and Special meeting of May 13, 2013 Approve financial report and payment of bills for April 2013 Resolution 2013 -06. Motion: Move to approve Consent agenda as presented. PULIC HEARING 1. Consider Sale of Scattered Site Lots — Resolution 2013 -07 Motion: Move to waive the reading of Resolution 2013 -07 there being ample copies available to the public. Move to adopt Resolution 2013 -07, approving a plan for conveyance of certain scattered site lots owned by the Economic Development Authority REGULAR BUSINESS 4. Consider sale of 44215"' Street — Resolution 2013 -08 Motion: Move to waive the reading of Resolution 2013 -08 there being ample copies available to the public Motion: Move to adopt Resolution 2013 -08 approving a purchase and redevelopment contract between the Columbia Heights Economic Development Authority and Timbereraft Remodeling 5. Mady's Blight Determination — Resolution 2013 -09 Motion: Move to waive the reading of Resolution 2013 -09 there being ample copies available to the public Motion: Move to adopt Resolution 2013 -09 designating building at 3927 Central Avenue as structurally substandard. G Subordination Agreement -4456 Monroe Street Motion: move to approve the subordination request and submit a formal resolution for consideration of the City Council 7. Administrative Repot S. Other Business The next regular EDA meeting will be Monday. July 1. 201 3 at City Hall. ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE MEETING OF MAY 6, 2013 IN CONFERENCE ROOM 1 The meeting was called to order at 6:30 pin by Chair Peterson. Members Present: Bruce Nawrocki, Gary Peterson, Dolma Schmitt, Tammera Dichm, Marlaine Szurek, and Bobby Williams. Members Absent: Gerry I-Ierringer Staff Present: Walt Fehst, Scott Clark, Sheila Cartney, and Shelley Hanson. 2. PLEDGE OF ALLEGIANCE - RECITED 3. CONSENT ITEMS 1. Approve the Minutes from April 1, 2013. 2. Approve the Financial Report and Payment of Bills for March 2013 on Resolution 2013 -04. 3. Approve Huset Park Fifth Amendment -BNC Bank on Resolution 2013 -02. Questions by Members: Nawrocki asked how long the development process will go on. Clark responded that the development agreement will remain in effect until it is developed. He went on to tell members that three developers have shown some interest in the remaining sites and BNC is reviewing the options to see which offer they may bring to the City for consideration. Depending on which option they choose, the Board may have to act on approving a new land use and altering the agreement currently in place. Clark stated the developers that are currently interested have no interest in developing any commercial /retail space that was part of the original concept. Nawrocki asked what happens if they don't develop it as commercial which would bring in higher tax dollars. Clark stated they would then get less in tax increment monies. Motion by Williams, seconded by Schmitt to Naive the reading of Resolutions 2013 -04 and 2013 -02, there being an ample amount of copies available to the public. All ayes. MOTION PASSED. Motion by Williams, seconded by Schmitt, to approve the consent agenda items as presented. All ayes. MOTION PASSED. EDA Minutes Page 2 May 6, 2013 EDA RESOLUTION 2013 -04 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR MARCH 2013 AND PAYMENT OF BILLS FOR THE MONTH OF MARCH 2013. 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 FDA'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 months of March 2013 has been reviewed by the EDA Commission; and WHEREAS, the EDA has examined the financial statements and finds them to be acceptable as to both form and accuracy; and WHEREAS, the EDA Commission has other means to verity the intent of Section 469.096, Subd. 9, including but not limited to Comprehensive Annual Financial Reports, Annual City approved Budgets, Audits and similar documentation; and WHEREAS, financials statements are held by the City's Finance Department in a method outlined by the State of Minnesota's Records Retention Schedule, NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the referenced financial statements including the check history, 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 check history as presented in writing is approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution is made a part of the permanent records of the Columbia Heights Economic Development Authority. Passed this 6th Day of May 2013 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2013-02 RESOLUTION APPROVING A FIFTH AMENDMENT TO AMENDED AND RESTATED CONTRACT FOR PRIVATE REDEVELOPMENT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY, THE CITY OF COLUMBIA HEIGHTS AND BNC NATIONAL BANK AS SUCCESSOR TO HUSET PARK DEVELOPMENT CORPORATION EDA Minutes Page 3 May 6, 2013 BE IT RESOLVED By the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development Authority ( "Authority") as follows: Section 1. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ( "EDA Act "), and is currently administering the Downtown CBD Redevelopment Project ( "Redevelopment Project ") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ( "HRA Act "). 1.02. The Authority, the City of Columbia Heights ( "City") and Huset Park Development Corporation (the "Redeveloper ") entered into a into An Amended and Restated Contract for Private Redevelopment dated as of August 1, 2007, as amended by a First Amendment thereto dated June 16, 2008 and a Second Amendment thereto dated as of February 9, 2009 and a Third Amendment Thereto dated as of September 28, 2009 and a Fourth Amendment dated as of November 22, 2011 (the "Contract "), setting forth the terms and conditions of redevelopment of certain property within the Redevelopment Project, generally located east of University Avenue and south and west of Huset Park . 1.03. BNC National Bank (the "Lender ") is the successor in interest to Redeveloper under the Contract. 1.04. The Lender has requested the Authority and City to modify, the Contract in certain respects, and the Authority has caused to be prepared a Fifth Amendment to Amended and Restated Contract for Private Redevelopment between the Authority, City and Lender (the "Fifth Amendment "). 1.05. The Board has reviewed the Fifth Amendment and finds that the execution thereof and performance of the Authority's obligations thereunder are in the best interest of the City and its residents. Section 2. Authority Approval; Further Proceedings. 2.01. The Fifth Amendment as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Fifth Amendment and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority its obligations thereunder. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 6th day of May, 2013. Gary Peterson, President ATTEST: Shelley Hanson, Secretary EDA Minutes Page 4 May 6, 2013 PUBLIC HEARING 4. Consider Sale of 4502 Washington Street Cartney told members that Cory Mattson owner of 4500 Washington Street has proposed to purchase 4502 Washington Street from the EDA in order to combine the lots together. The EDA held a meeting on April 1, 2013 to discuss the purchase and negotiated a purchase price of $15,000 with Mattson and the majority of the EDA. At the meeting the EDA called for a public hearing for the potential sale. Mattson's backyard abuts the subject lot, he proposes to expand his backyard with this lot and combine the lots into one lot. The EDA purchased the 4502 Washington Street property in 2009 as part of the Scattered Site program for $35,000 the lot is 5,160 square feet. Overall the EDA has spent $46,086 on this property including the purchase, demo prep and demolition. A public hearing is required when the EDA sells property; the public hearing has been advertised for May 6, 2013. At the public hearing the EDA can discuss this item further and anyone from the public is able to speak to the item. Staff recommends approving the sale to Cory Mattson and approving the purchase and redevelopment agreement, which requires the lots to be combined. uestions /comments from members Nawrocki said he voted against this at the last meeting. Since then he has changed his mind and would now support this offer. He said that Mr. Mattson is a Volunteer Fire Fighter for our community and as such, he thinks it is in the best interest of the City to keep him in the City. It is important to keep young families, like the Mattsons, in the City especially when they contribute in such a positive manner. Williams stated he liked Mr. Mattson and appreciates his contributions to the City, but that lie cannot support this proposal as it is too big of a loss to the City. He feels that it sets a precedent. He would rather see a house built on the property and have the benefit of the added tax base which is why these lots were purchased in the first place. He also sees nothing wrong with small, well -kept houses on small lots. In other parts of the country this type of housing is very much in demand. Sclunitt said this offer is more than we are getting for the other lots if action is taken on the scattered site lots that will be considered later in the meeting. She stated that a few other lots in the area are bigger and she sees this as a benefit to the neighborhood. Diehm felt that the Board should make their decision on the offer, not on who the person is, or that he is affiliated with the City in some way. Szurek agreed with this statement. EDA Minutes Page 5 May 6, 2013 Public Hearing Opened. Phil Epstein, 60145t" Avenue, questioned the lot size. He didn't believe it is a 40 ft lot. He said he has an issue with how Mr. Mattson cares for his current lawn, and wonders how he will care for additional property. However, he still believes it will make the property more attractive to have a larger yard and will generally be an improvement for the neighborhood. It is better than constructing another house on a small lot that would probably end up as rental and there is too much rental in that area now. Ms. Seebach, 4503 Washington St. stated that whether or not he is a firefighter, he's young and we need more young people in the community. She said there is too much rental in the neighborhood and too many houses crammed onto small lots. She is in favor of Mattson purchasing the property. Cory Geng, 4501 7"' St wants to see Mattson stay in the neighborhood. He watched Mattson rebuild on his lot and he told the members that Mattson has been mowing the lot next door since it became vacant. Geng said Mattson is a good neighbor and thinks the additional green space will improve the look of the neighborhood more than another house crowded in. John Seebach, 4503 Washington St lives across the street. He said he likes having the property vacant and is opposed to having another HUD house or rental property built on it. He wants Mattson to have this property as additional yard space. Public Hearing Closed. Motion by Nawrocki, seconded by Williams, to waive the reading of Resolution 2013 -05, there being ample copies available to the public. All ayes. MOTIONPASSED. Motion by Nawrocki, seconded by Diehm, to adopt Resolution 2013 -05, approving a purchase and redevelopment agreement (including the sale of land) between the Columbia Ileights Economic Development Authority and Corey Mattson. Roll Call: Ayes- Szurek, Schmitt, Diehm, Nawrocki, and Peterson Nays- Williams MOTIONPASSED. COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2013-05 RESOLUTION APPROVING A PURCHASE AND REDEVELOPMENT AGREEMENT (INCLUDING THE SALE OF LAND) BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND COREY MATTSON BE IT RESOLVED By the Board of Commissioners ('Board ") of the Columbia Heights Economic Development Authority ( "Authority ") as follows: Section 1. Recitals. 1.01. The Authority has determines( a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ('EDA Act "). EDA Minutes Page 6 May 6, 2013 1.02. The Authority and Corey Mattson (the "Redeveloper ") have proposed to enter into a PURCHASE AND REDEVELOPMENT AGREEMENT (the "Contract "), setting forth the terms and conditions of sale and redevelopment of certain property owned by the Authority located at 4502 Washington Avenue NE and described as Lot 14, Block 4, Gillette's Annex to Columbia Heights, Anoka County, Minnesota (the "Redevelopment Property"). 1.03. Pursuant to the Contract, the Redeveloper will acquire the Redevelopment Property and will combine the Redevelopment Property with his existing property located at 4500 Washington Avenue NE into a single lot for single family residential purposes and related single family accessory uses, consistent with the City of Columbia Heights minor subdivision process, and subject further to the City's zoning and building codes and policies (the "Lot Combination ") (upon completion the "Combined Property"). 1.04. The activities of the Authority under the Contract implement housing goals of the City's Comprehensive Plan: "Promote and preserve the single - family housing stock as the community's strongest asset" and "Provide a variety of life -cycle housing opportunities within the community." 1.05. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder father the goals of the Comprehensive Plan and are in the best interests of the City and its residents. Section 2. Authority Approval; Further Proceedings. 2.01. The Contract as presented to the Board, including the sale of the Redevelopment Property described therein, is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The President and Executive Director are hereby authorized to execute on behalf of the Authority the Contract and any documents referenced therein requiring execution by the Authority, and to carry out, on behalf of the Authority its obligations thereunder. 2.03. Authority and City staff are authorized and directed to take all actions to implement the Contract. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 6 "' day of May, 2013, President ATTEST: Secretary EDA Minutes Page 7 May 6, 2013 NEW BUSINESS 5. Scattered Site Contract Cartney reminded members that at the April EDA meeting the Commission met with Pete Heryla and John Rockwell of Remax and a representative of Timbercraft Homes. At this meeting lot prices, housing styles and contracts were discussed. Staff explained that half the lots were shovel ready while the other half still had to have the water lines redone to meet today's standard of one inch. Timbercraft Homes also presented two concept drawings of homes that could be built on the scattered site lots with the idea that the plan for 4303 Reservoir would come back to the EDA for approval. At the meeting tonight the EDA is presented with the following: 1. Remax Synergy listing Agreement. This document is an agreement with the EDA and Pete Heryla and John Rockwell to list the lots for sale at a sales price of $7,500 each with the exception of 4303 Reservoir Blvd, which will be $35,000. The lots would be sold "as is" and the price reduction reflects that some of the lots need additional site work. "There is also a clause in this listing agreement that after one year if the house sales increase the lot listing prices may increase. 2. Purchase and Redevelopment Agreement. This document is an agreement with the EDA and Timbercraft Homes. A Purchase and Redevelopment Agreement will be filled out for the sale of each lot. This agreement determines the sales price, the model home type and completion date. 3. Model Homes. Timbercraft Homes is providing 2 models for buyers to choose from. If the EDA approves the models tonight then the Model Homes become part of the Purchase and Redevelopment Agreement and will be approved as part of the building permit and will not need additional EDA approval. The only lot that will need additional approval is 4303 Reservoir Blvd. Cartney pointed out that the models proposed are smaller than our original guidelines and also do not meet the requirements in the City Code. She reviewed the square footages of the proposed homes with the members. Clark told members that Mr. Herringer had called him and wanted to express his opinion on the new proposal. He thinks if the proposal is accepted that the builder should make a good faith effort to choose one of the lots that need some additional site work for their first home. Staff recommends approval of the agreements as presented. Questions from members: Nawrocki asked if the City would net out $10,000 /lot or if expenses would be taken out of that. Cartney said the $10,000 /lot figure was the figure discussed at the last meeting. Since that time the builder came back with $7,500 /lot across the board as some need additional work and this price reduction would cover those additional fees. She went on to say that commission and miscellaneous fees would come out of that amount resulting in an approximate cash out of $5,705 per lot. Nawrocki then asked how long from the time the builder purchases the lot that construction has to start. Cartney said that hadn't FDA Minutes Page 8 May 6, 2013 been discussed but a clause could be written in. The Builder suggested 60 days from the date of closing on the lot. Schmitt questioned the layout of the homes proposed. She asked if a buyer wanted a more open design if that could be accommodated. The Builder said they would be flexible as long as the minimum requirements are still being met. He asked if there would be a staff point person that could approve such changes or if each change would have to be approved by the Board. The Board said staff could approve changes as long as the minimum requirements are met. Diehm questioned whether we would need to change the City Ordinance or if they would have to apply for a variance. Diehm also stated she wanted to review the Purchase and Development Agreement before voting on it and that it wasn't included in the packet. She went on to say that the proposed plan is small, but acceptable because it does meet the 3 Bedroom requirement. Williams said the goal is to improve our housing stock and this program does that so he supports the agreements. The minimum square footage for the footprint is currently 960 sf according to our City Ordinance. Cartney said an amendment to the Ordinance could be made to allow a reduction of this requirement for small lots. The timetable to accomplish this was discussed. It could go before the Planning & Zoning Commission in June and then to the Council. The option to grant a variance for the first lot was discussed so the builder could start construction if the agreements are all approved to allow time to make the amendment to the Ordinance. The City will have to be the requesting party since the Builder will not own the property in time for making the request for the June meeting. Diehm suggested addressing the minimum finished space of the house rather than the footprint size. Diehm then suggested we set a date for a special meeting to approve the final documents once she has had a chance to review them and to add the clause that construction would begin within 60 days of the closing. Motion by Diehm, seconded by Peterson, to schedule a special meeting for Monday, May 13 °i at 6:45 pm prior to the regular City Council meeting. All ayes. MOTION PASSED. 6. Administrative Report There was nothing further to discuss. The next regular FDA meeting will be Monday, June 3, 2013 at City Hall at 6:30 pm The meeting was adjourned at 7:15 pm. Respectfully submitted, Shelley Hanson Secretary ECONOMIC DEVELOPMENT AUTHORITY (EDA) MINUTES OF THE SPECIAL MEETING OF MAY 13, 2013 IN CONFERENCE ROOM 1 The meeting was called to order at 6:45 pm by Chair Peterson. Members Present: Bruce Nawrocki, Gary Peterson, Donna Schmitt, Tammera Diehm, Marlaine Szurek, and Bobby Williams. Members Absent: Gerry I-Ierringer Staff Present: Walt Fehst and Scott Clark. 2. PLEDGE OF ALLEGIANCE - RECITED 3. BUSINESS ITEMS Scattered Site Contract Clark reminded members that at the April EDA meeting the Commission met with Pete Heryla and John Rockwell of Remax and a representative of Timbercraft Homes. At this meeting lot prices, housing styles and contracts were discussed. Staff explained that half the lots were shovel ready while the other half still had to have the water lines redone to meet today's standard of one inch. Timbercraft Homes also presented two concept drawings of homes that could be built on the scattered site lots with the idea that the plan for 4303 Reservoir would come back to the EDA for approval. At the May 6, 2013 meeting the EDA discussed items 1 -3 below and essentially agreed to the items as presented; the Purchase and Redevelopment Agreement was inadvertently left out of the packet so no action was taken on any of the items, a formal action is requested tonight. 1. Remax Synergy listing Agreement. This document is an agreement with the EDA and Pete Heryla and John Rockwell to list the lots for sale at a sales price of $7,500 each with the exception of 4303 Reservoir Blvd, which will be $35,000. There is also a clause in this listing agreement that after one year if the house sales increase the lot listing prices may increase. 2. Purchase and Redevelopment Agreement. This document is an agreement with the EDA and Timbercraft Homes. A Purchase and Redevelopment Agreement will be filled out for the sale of each lot. This agreement determines the sales price, the model home type and completion date. 3. Model Homes. Timbercraft Homes is providing 2 models for buyers to choose from. If the EDA approves the models tonight then the Model Homes become part of the Purchase and Redevelopment Agreement and will be approved as part of the building permit and will not need additional EDA approval. The only lot that will need additional approval is 4303 Reservoir Blvd. Staff recommends approval of the agreements as presented. Questions /comments from members: Nawrocki expressed his concerns regarding the agreements. EDA Minutes Page 2 May 13, 2013 Motion by Williams, seconded by Schmitt to approve and execute the Lisling Agreement with Remax Synergy. All ayes. MOTION PASSED. Motion by Williams, seconded by Schmitt to approve and execute the Purchase and Redevelopment Agreement with Timbercraft Homes. All ayes. MOTION PASSED. Motion by Schmitt, seconded by Szurek to approve the model homes as presented. All ayes. MOTION PASSED. 4. Administrative Report There was nothing further to discuss. The next regular EDA meeting will be Monday, June 3, 2013 at City Hall at 6:30 pm. The meeting was adjourned at 7:00 pm. Respectfully submitted, Scott Clark Acting Secretary COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: June 3, 2013 AGENDA SECTION: Consent ORIGINATING EXECUTIVE NO:3 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Financial Report and Payment of Bills BY: Sheila Cartney BY: DATE: May 14, 2013 BACKGROUND: The Financial Report is for the month of April 2013 and Resolution 2013 -06 is attached for approval. RECOMMENDATION: Staff will be available to answer 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 waive the reading of Resolution 2013 -06 there being ample copies available to the public. Move to approve Resolution 2013 -06, Resolution of the Columbia Heights Economic Development Authority (EDA) approving the Financial Statement and Payment of Bills for the month of April 2013. 1tesolunon ana Pmanctai EDA ACTION: EDA RESOLUTION 2013 -06 RESOLUTION OF THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) APPROVING THE FINANCIAL STATEMENT FOR APRIL 2013 AND PAYMENT OF BILLS FOR THE MONTH OF APRIL 2013. 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 April 2013 has been reviewed by the EDA Commission; and WHEREAS, the EDA has examined the financial statements and finds them to be acceptable as to both form and accuracy; and WHEREAS, the EDA Commission has other means to verify the intent of Section 469.096, Subd. 9, including but not limited to Comprehensive Annual Financial Reports, Annual City approved Budgets, Audits and similar documentation; and WHEREAS, financials statements are held by the City's Finance Department in a method outlined by the State of Minnesota's Records Retention Schedule, NOW, THEREFORE BE IT RESOLVED by the Board of Commissioners of the Columbia Heights Economic Development Authority that it has examined the referenced financial statements including the check history, 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 check history as presented in writing is approved for payment out of proper funds; and BE IT FURTHER RESOLVED this resolution is made a part of the permanent records of the Columbia Heights Economic Development Authority. 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' Z 1 M M C O 1H Ul M H 1 r7 x M m Icz ro 0 00 00 000 0000 o Itj 7y M IOC � O 00 00 00 0 0 000 O M H HC' O O 00 00 000 0000 O U 1 � I (n m M n 10 z� I Z R. ro p o0 00 000 000p o -r IM 'G •O •O.O •O •o •O O.O ,O 00 O O 1 (D 1 N O 00 O O 00 O 000 O O O G1 lyy 'G 'ZO wV y a 1 (D w zo W W N b ON N N Wro a 00 O N w o0 00 00o morno o ow x ImH \O 00 00 Ooo .P O.PO O Ulm 1 U)CJ pl 00 00 000 NOOJO O ro yy ? z 1 CJ H W 1 0 Zm P W W N ro o blpl N N 00 W �O �P.P lb lb O1 Ol 010610 O 1 (]U) \p NN 000 IMH 00 NN 000 O Vl C'I 1 Ul t7 t11 Op 1p 1p 0 00 M OJCIMC, OWO O I w w gM rd S Ir W � �p .P iP tb l0 000 m rn 01 0610 O 1 G1 l0 NN 00 NN 000 .POiPO O I 1 n 1 H w o0 16 ib o0o mono 0 tO+H 1 11 I I N� 16 lb �D W'D lb 1 ro N i0 'Dw lIl 1 H '.bO fl kz,� 0k 160 O CN 00 1 1 1 11 J r 1 1 1 11 I 1 I 1 I I I I I I O 1 H I 1 I I I 10`y I I I I I 1 1 I I I 1 I 1 I I 1 1 I 1 I I I 1 H _ x H MIA r C) MWO Cam H I M- O raN y \H I ONZ z y i t7wn O y JV M r I ••N I ooM , M I H x c I d I (n I W 117 � o � I H I I y M I d � x M 0 C O I H `.0 M H d x N M b7 9 Cz ro ox m o ,Hr O u I r. w M M n 'O 11� za ,M N I xl o rt o IM 'G Ii o � N O N O 0 yy WG 1zn wN , CJH a I � H13 13F .P z 13 x Y N In ro ON o Ixro a 00 w N x MH m i mC7 ro Iz� I C7H w , o P IzH in I d N ro o w 1ro o 100 w 0 OH MH INM N Ind I I wM �Y P r zH Izz w O H � �Mz to H I O H 1 rH o ro N o � C0 I o0 Jr I N'$ 1 O M H I ro y ox I bJ bJ J!n COLUMBIA I-IEIGI -ITS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: June 3, 2013 AGENDA SECTION: Public Hearing ORIGINATING EXECUTIVE NO:1 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Consider Sale of Scattered Site Lots — BY: Sheila Cartney BY: Resolution 2013 -07 DATE: May 9, 2013 BACKGROUND: At the May 13, 2013 Special Meeting the EDA approved a listing agreement with Remax Synergy to list the 12 scattered site lots for sale, approved a purchase and redevelopment agreement with Timbercraft Homes to build on said lots and approved two model homes which can be built on the lots with the exception of 4303 Reservoir Blvd. A public hearing is required when the EDA sells property; the public hearing has been advertised for June 3, 2013. This Public Hearing lists all 12 properties being approved for sale that way the EDA does not have to hold a Public Hearing every time there is a sale. The Resolution authorizes the sale of the lots and the Purchase and Redevelopment Agreement that will accompany each sale. The property at 4303 Reservoir Blvd will still need EDA approval before it can be built on. At the public hearing the EDA can discuss this item further and anyone from the public is able to speak to the item. RECOMMENDATION:. Staff recommends approval of the sale as presented. RECOMMENDED MOTION: Motion: Move to waive Resolution 2013 -07, there being ample copies available to the Public. Motion: Move to adopt Resolution 2013 -07 approving a Plan for conveyance of certain scattered site lots owned by the Economic Development Authority. EDA ACTION: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2013 -07 RESOLUTION APPROVING PLAN FOR CONVEYANCE OF CERTAIN SCATTERED SITE LOTS OWNED BY THE ECONONOMIC DEVELOPMENT AUTHORITY BE IT RESOLVED By the Board of Commissioners ('Board ") of the Columbia Heights Economic Development Authority ( "Authority ") as follows: Section I. Recitals. 1.01. The Authority has determined a need to exercise the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ( "EDA Act "), and is currently administering the Downtown CBD Redevelopment Project ('Redevelopment Project ") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ( "HRA Act "). 1.02. Within the Redevelopment Project, the Authority and City have created the City - Wide Scattered Site Housing Tax Increment Financing District (the "TIF District "), and the Authority has acquired parcels within the TIP District described in Exhibit A hereto (the "Subject Parcels "). 1.03. The Authority intends to convey the Subject Parcels to contractors that will construct homes for sale to income - qualified buyers (or to qualified buyers for construction of their own homes), and to that end has engaged the services of Re /Max Synergy (the "Broker ") to assist in that process as more fully described in the Exclusive Right to Sell Listing Contract (the "Listing Agreement'). 1.04. On this date, the Board held a duly noticed public hearing regarding the plan for sale of the Subject Parcels. 1.05. The Board has determined that sale of the Subject Parcels as described in this resolution is in the best interest of the City and its residents. Section 2. Sale of Subject Parcels Approved; Further Proceedings. 2.01. The Board approves the plan to sell the Subject Parcels in accordance with the Listing Agreement. 2.02. The Board hereby ratifies approval and execution of the Listing Agreement. 2.03. Authority staff and consultants are authorized and directed to cooperate with the Broker in seeking sales of the Subject Parcels, subject to the condition that before the EDA is obligated to sell of any Subject Parcel, the Board shall approve a purchase and redevelopment agreement with the buyer of that parcel (as described in the Listing Agreement). Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this day of June, 2013. President ATTEST: Secretary EXHBIT B Subject Parcels 4011 5th Street NE 4108 7th Street NE 4448 Quincy Street NE 4235 Washington Street NE 4110 6th Street NE 4303 Reservoir Blvd NE 4039 5th Street NE 4421 5th Street NE 3842 Tyler Street NE 3846 Tyler Street NE 1309 Circle Terrace NE 4133 2nd Street NE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: June 3, 2013 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO:4 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Consider sale of 4421 5 °i Street — BY: Sheila Cartney BY: Resolution 2013 -08 DATE: May 28, 2013 BACKGROUND: At the May 13, 2013 meeting the EDA approved the following documents 1) a listing agreement with Remax Synergy to list the Scattered site lots for sale, 2) a Purchase and Redevelopment Agreement with Timbercraft Homes that will also be filled out with every sale, and 3)Two model homes for buyers to choose from excluding the Reservoir Blvd lot. Tonight before you is the first purchase of one of the scattered site lots, 4421 5`" street, by Timbercraft Homes. As agreed the sales price is $7,500 and they propose to put model #1 on this property. This lot already has an existing two -car garage and the correct water connections. They intend to finish construction by the end of September. As agreed upon at the previous EDA meetings the city has applied for a variance to the minimum floor area of 960 square feet on the main floor requirement for this model, as proposed the main floor area will be 581 square feet. At the same Planning and Zoning meeting staff is requesting an ordinance amendment to this requirement. RECOMMENDATION: Staff recommends approving the sale. RECOMMENDED MOTION: Motion: Move to waive the reading of Resolution 2013 -08, there being ample copies available to the public. Motion: Move to adopt Resolution 2013 -08 approving a Purchase and Redevelopment Contract between the Columbia Heights Economic Development Authority and Timbercraft Remodeling. EDA ACTION: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2013-08 RESOLUTION APPROVING A PURCHASE AND REDEVELOPMENT CONTRACT BETWEEN THE COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY AND TIMBERCRAFT REMODELING BE IT RESOLVED By the Board of Commissioners ( "Board ") of the Columbia Heights Economic Development Authority ( "Authority ") as follows: Section 1. Recitals. 1.01. The Authority has the powers of a housing and redevelopment authority, pursuant to Minnesota Statutes, Sections. 469.090 to 469.108 ( "EDA Act"), and is currently administering the Downtown CBD Redevelopment Project ( "Redevelopment Project ") pursuant to Minnesota Statutes, Sections 469.001 to 469.047 ( "HRA Act "). 1.02. The Authority administers a scattered site housing program, under which the Authority acquires residential property for resale to builders or individuals for construction of new single family homes. 1.03. The Authority and Timbercraft Remodeling (the "Redeveloper ") have proposed to enter into a Purchase and Redevelopment (the "Contract'), setting forth the terms and conditions for sale of certain property within the Redevelopment Project located at 4421 5°i St. NE Street and described as Lot 21, Block 18, Columbia Heights Annex to Minneapolis (the "Subject Property "). 1.04. On June 3, 2013, the Authority held a public hearing regarding conveyance of various parcels owned by the Authority as part of the scattered site housing program -- including the Subject Property - -at which all interested persons were given an opportunity to be heard. 1.05. The Board has reviewed the Contract and finds that the execution thereof and performance of the Authority's obligations thereunder further the goals of the Redevelopment Project and are in the best interests of the City and its residents. Section 2. Authority Approval• Further Proceedings. 2.01. The Contract as presented to the Board is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the President and Executive Director, provided that execution of the documents by such officials shall be conclusive evidence of approval. 2.02. The Authority approves conveyance of the Subject Property to the Redeveloper, subject to satisfaction of all terms and conditions of the Contract, and authorizes and directs the President and Executive Director to execute the deed and any other documents necessary to carry out such real estate transaction. 2.03. Authority and City staff are authorized and directed to take all actions to implement the Contract. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 3rd day of June, 2013. ATTEST: Secretary 2 President PURCHASE AND REDEVELOPMENT AGREEMENT 1. Parties. This Purchase Agreement is made as of 6/4, 2013 between the COLUMBIA HEIGI -ITS ECONOMIC DEVELOPMENT AUTH6RITY, as public body corporate and politic under the laws of Minnesota having its office located at 590 40TH Avenue NE, Columbia Heights, MN (the "Seller "), and Timbercraft Enterprises, Inc. (the "Buyer "). 2. Offer /Acceptance. Buyer offers to purchase and Seller agrees to sell real property legally described as follows (the "Property"): 44215 1h Street NE — Columbia Heights, MN 55421 Col Hts Annex to Mpls, Anoka County, Minnesota, Lot 21, Block 18 3. Price and Terms. The price for the Property is $7500.00 which Buyer shall pay as follows: Earnest money of $500.00 by check, receipt of which is hereby acknowledged by Seller, and the balance o£ 70$ 00.00 to be paid by certified check on the Date of Closing. The "Date of Closing" shall be 6/20/13, or such other earlier or later date as the parties mutually agree. 4. Personal Property Included in Sale. There are no items of personal property or fixtures owned by Seller and currently located on the Property for purposes of this sale. 5. Deed. Upon performance by Buyer, Seller shall deliver a quit claim deed conveying title to the Property to Buyer, in substantially the form attached as Exhibit A (the "Deed "). 6. Real Estate Taxes and Special Assessments. The parties agree and understand that the Property is exempt from real estate taxes for taxes payable in the current year. Seller shall pay on bate of Closing all special assessments levied against the Property as of the 421009v4 C1,205 -49 date of this agreement, including those certified for payment with taxes due and payable in 2013. Seller represents that there are no special assessments pending as of the date of this agreement. if a special assessment becomes pending after the date of this agreement and before the Date of Closing, Buyer may, as Buyer's option: A. Assume payment of the pending special assessment without adjustment to the purchase agreement price of the Property; or B. Require Seller to pay the pending special assessment and Buyer shall pay a commensurate increase in the purchase price of the Property, which increase shall be the same as the estimated amount of the assessment; or C. Declare this agreement null and void by notice to Seller, and earnest money shall be refunded to Buyer. 7. Closing Costs and Related Items. The Seller shall be responsible for the following costs: (a) recording fees and conservation fees for all instruments required to establish marketable title in Seller; (b) deed transfer taxes and conservation fees required to be paid in connection with the Deed be given by Seller; and (c) Seller's broker fees. Buyer shall be responsible for the payment of the following costs: (d) recording fees required to be paid in connection with the Deed to be given by Seller; (e) the cost of the registered property abstract or updated abstract, or in the absence of an abstract, the cost of the premium for an owner's policy of title insurance, and (f) closing fee, if any. Each party shall be responsible for its own attorneys' fees and costs. S. Sewer and Water. Seller warrants that city sewer is available at the Property line, and that city water is available in the right of way adjacent to the Property. Seller makes no warranty regarding the conditions of any existing water stub from the main to the Property line. Seller advises Buyer to inspect the condition of the water stub. 9. Condition of Property. Buyer acknowledge that they have inspected or have had the opportunity to inspect the Property and agree to accept the Property "AS IS." Buyer has the right, at its own expense to take soil samples for the purpose of determining if the soil is suitable for construction of the dwelling described in section 14 below. If the soil is determined to be unacceptable the Buyer may rescind this agreement by written notice to the Seller, in which case the agreement shall be null and void and all earnest money paid hereunder shall be refunded to the Buyer. Seller makes no warranties as to the condition of the Property. 10. Marketability of Title. As soon as reasonably practicable after the date of this Agreement, Seller shall furnish to Buyer a registered property abstract or an updated abstract of title to the Property, certified to date to include proper searches covering bankruptcies, state and federal judgment and liens. In the absence of an abstract of title, the Seller will provide a title commitment and title insurance. Buyer shall have fifteen (15) business days after receipt of the abstract or title commitment to examine the same 2 4210090 CL205 -49 and to deliver written objections to title, if any, to Seller. Seller shall have the greater of (i) the number of days remaining until the Date of Closing or (ii) thirty (30) days to have such objections removed or satisfied. 11. Title Clearance and Remedies. If Seller shall fail to have title objections timely removed, the Buyer may, at its sole election: (a) terminate this Agreement without any liability on its part; in which event the earnest money shall be promptly refunded in exchange for a quit claim deed to the Property from Buyer; or (b) take title to the Property subject to such objections. If title is marketable, or is made marketable as provided herein, and Buyer defaults in any of the agreements herein, Seller may elect either of the following options, as permitted by law: A. Cancel this contract as provided by statute and retain all payments made hereunder as liquidated damages. The parties acknowledge their intention that any note given pursuant to this contract is a down payment note, and may be presented for payment notwithstanding cancellation; B. Seek specific performance within six months after such right of action arises, including costs and reasonable attorney's fees, as permitted by law. If title is marketable, or is made marketable as provided herein, and Seller defaults in any of the agreements herein, Buyer may, as permitted by law: C. Seek damages from Seller including costs and reasonable attorney's fees; D. Seek specific performance within six months after such right of action arises. 12. Well Disclosure. Seller certifies that Seller does not know of any wells on the Property. 13, Individual Sewage Treatment System Disclosure. Seller certifies that there is no individual sewage treatment system on or serving the Property. 14. Construction and Sale of Dwelling. Buyer agrees that it will construct a new single family dwelling on the Property, intended for sale to a person or persons for residential occupancy (an "Owner Occupant "). This covenant shall survive the delivery of the Deed. A. The single family dwelling described in this Section is referred to as the "Minimum Improvements." B. The Minimum Improvements shall consist of a house with approximately 1169 square feet, 3 bedrooms, and shall be constructed substantially in accordance with the general plans for Timbercraft Model on file in City Hall. Construction of the Minimum Improvements must be substantially completed by 9/20, 2013. 421009v4 CL205 -49 Construction will be considered substantially complete when the final certificate of occupancy has been issued by the City of Columbia Heights building official. C. Promptly after substantial completion of the Minimum Improvements in accordance with those provisions of the Agreement relating solely to the obligations of the Buyer to construct such Minimum Improvements (including the date for completion thereof), the Seller will furnish the Buyer with a Certificate of Completion for such improvements. Such certification by the Seller shall be (and it shall be so provided in the Deed and in the certification itself) a conclusive determination of satisfaction and termination of the agreements and covenants in the Agreement and in the Deed with respect to the obligations of the Buyer and its successors and assigns, to construct the Minimum Improvements and the dates for completion thereof. The certificate provided for in this Section of this Agreement shall be in such form as will enable it to be recorded in the proper office for the recordation of deeds and other instruments pertaining to the Property. If the Seller shall refuse or fail to provide any certification in accordance with the provisions of this Section, the Seller shall, within thirty (30) days after written request by the Buyer, provide the Buyer with a written statement, indicating in adequate detail in what respects the Buyer has failed to complete the Minimum Improvements in accordance with the provisions of the Agreement, or is otherwise in default, and what measures or acts it will be necessary, in the opinion of the Seller for the Buyer to take or perform in order to obtain such certification. D. The Buyer represents and agrees that until issuance of the Certificate of Completion for the Minimum Improvements: (1) Except for any sale to an Owner Occupant, the Buyer has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease, or any trust or power, or transfer in any other mode or form of or with respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, to any person or entity (collectively, a "Transfer "), without the prior written approval of the Seller's board of commissioners. The term "Transfer" does not include encumbrances made or granted by way of security for, and only for, the purpose of obtaining construction, interim or permanent financing necessary to enable the Buyer or any successor in interest to the Property, or any part thereof, to construct the Minimum Improvements or component thereof. (2) If the Buyer seeks to effect a Transfer to any person or entity other than an Owner Occupant prior to issuance of the Certificate of Completion, the Seller shall be entitled to require as conditions to such Transfer that: (i) any proposed transferee shall have the qualifications and financial responsibility, in the reasonable judgment of the Seller, necessary 421009v4 CL205 -49 and adequate to fulfill the obligations undertaken in this Agreement by the Buyer as to the portion of the Property to be transferred; and (ii) Any proposed transferee, by instrument in writing satisfactory to the Seller and in form recordable in the public land records of Anoka County, Minnesota, shall, for itself and its successors and assigns, and expressly for the benefit of the Seller, have expressly assumed all of the obligations of the Buyer under this Agreement as to the portion of the Property to be transferred and agreed to be subject to all the conditions and restrictions to which the Buyer is subject as to such portion; provided, however, that the fact that any transferee of, or any other successor in interest whatsoever to, the Property, or any part thereof, shall not, for whatever reason, have assumed such obligations or so agreed, and shall not (unless and only to the extent otherwise specifically provided in this Agreement or agreed to in writing by the Seller) deprive the Seller of any rights or remedies or controls with respect to the Property, the Minimum Improvements or any part thereof or the construction of the Minimum Improvements; it being the intent of the parties as expressed in this Agreement that (to the fullest extent permitted at law and in equity and excepting only in the manner and to the extent specifically provided otherwise in this Agreement) no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, and whether voluntary or involuntary, shall operate, legally, or practically, to deprive or limit the Seller of or with respect to any rights or remedies on controls provided in or resulting from this Agreement with respect to the Property that the Seller would have had, had there been no such transfer or change. In the absence of specific written agreement by the Seller to the contrary, no such transfer or approval by the Seller thereof shall be deemed to relieve the Buyer, or any other party bound in any way by this Agreement or otherwise with respect to the Property, from any of its obligations with respect thereto. (iii) Any and all instruments and other legal documents involved in effecting the transfer of any interest in this Agreement or the Property governed by this subsection E. shall be in a form reasonably satisfactory to the Seller. (3) If the conditions described in paragraph (2) above are satisfied then the Transfer will be approved and the Buyer shall be released from its obligation under this Agreement, as to the portion of the Property that is transferred, assigned, or otherwise conveyed. The provisions of this paragraph (3) apply to all subsequent transferors. (4) Upon issuance of the Certificate of Completion, the Buyer may Transfer the Property and /or the Buyer's rights and obligations under this Agreement 421009A CL205 -49 with respect to such Property without the prior written consent of the Seller [, except to the extent required under paragraph F of this Section]. E. The Buyer, and its successors and assigns, agree that they (a) will use the Minimum Improvements only as a single family dwelling, and in the case of an Owner Occupant, will occupy the Property as a residence, (b) will not rent the Property to any person or entity, (c) will not seek exemption from real estate taxes on the Property under State law, and (d) will not transfer or permit transfer of the Property to any entity whose ownership or operation of the Property would result in the Property being exempt from real estate taxes under State law (other than any portion thereof dedicated or conveyed to the City of Columbia heights or Seller in accordance with this Agreement). The covenants in this paragraph run with the land, survive both delivery of the Deed and issuance of the Certificate of Completion for the Minimum Improvements, and shall remain in effect for 10 years after the Date of Closing. F. The Buyer shall use its best efforts to convey the Property (either before or after issuance of the Certificate of Completion) to an Owner Occupant whose household income does not exceed (a) 100% of median income in the case of one or two person household Owner Occupants, or (b) 115% of median income in the case of three or more person Owner Occupants. The term "median income" means the median income in the seven -county metropolitan area, or the State as a whole, whichever is greater, using income data available from the Minnesota Housing Finance Agency as of the date of closing on sale to the Owner Occupant. Prior to closing on sale the Property by Buyer to an Owner Occupant, Buyer shall: (1) Notify the Seller in writing whether the proposed Owner Occupant will meet the income qualifications under this paragraph; and (2) If the proposed Owner Occupant will not meet the income limits, describe Buyer's efforts to find an income - qualified buyer; and (2) If the proposed Owner Occupant will meet the income limits, submit to Seller evidence of Owner Occupant's income in a form satisfactory to Seller, evidencing compliance with the income limits described above. The covenant in this Section applies only to the first sale of the Properly to an Owner Occupant, and does not apply to any subsequent sale by an Owner Occupant to any other person or party, 15. Revesting Title in Seller upon Happening of Event Subsequent to Conveyance to Buyer. In the event that subsequent to conveyance of the Property or any part thereof to the Buyer and prior to receipt by the Buyer of the Certificate of Completion for of the Minimum Improvements, the Buyer, subject to Unavoidable Delays (as hereafter defined), fails to cant' out its obligations with respect to the construction of the Minimum Improvements (including the nature and the date for the completion thereof), or abandons or substantially 0 4210090 CL205-49 suspends construction work, and any such failure, abandonment, or suspension shall not be cured, ended, or remedied within thirty (30) days after written demand from the Seller to the Buyer to do so, then the Seller shall have the right to re -enter and take possession of the Property and to terminate (and revest in the Seller) the estate conveyed by the Deed to the Buyer, it being the intent of this provision, together with other provisions of the Agreement, that the conveyance of the Property to the Buyer shall be made upon, and that the Deed shall contain a condition subsequent to the effect that in the event of any default on the part of the Buyer and failure on the part of the Buyer to remedy, end, or abrogate such default within the period and in the manner stated in such subdivisions, the Seller at its option may declare a termination in favor of the Seller of the title, and of all the rights and interests in and to the Property conveyed to the Buyer, and that such title and all rights and interests of the Buyer, and any assigns or successors in interest to and in the Property, shall revert to the Seller, but only if the events stated in this Section have not been cured within the time periods provided above. Notwithstanding anything to the contrary contained in this Section, the Seller shall have no right to reenter or retake title to and possession of a portion of the Property for which a Certificate of Completion has been issued. For the purposes of this Agreement, the term "Unavoidable Delays" means delays beyond the reasonable control of the Buyer as a result thereof which are the direct result of strikes, other labor troubles, prolonged adverse weather or acts of God, fire or other casualty to the Minimum Improvements, litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays, or acts of any federal, state or local governmental unit (other than the Seller in exercising its rights wider this Agreement) which directly results in delays. Unavoidable Delays shall not include delays in the Buyer's obtaining of permits or governmental approvals necessary to enable construction of the Minimum Improvements by the dates such construction is required under this section of this Agreement. 16. Resale of Reacquired Property; Disposition of Proceeds. Upon the revesting in the Seller of title to and /or possession of the Property or any part thereof as provided in Section 16, the Seller shall apply the purchase price paid by the Buyer under Section 4 of this Agreement as follows: (a) First, to reimburse the Seller for all costs and expenses incurred by the Seller, including but not limited to proportionate salaries of personnel, in connection with the recapture, management, and resale of the Property or part thereof (but less any income derived by the Seller from the Property or part thereof in connection with such management); all taxes, assessments, and water and sewer charges with respect to the Property or part thereof (or, in the event the Property is exempt from taxation or assessment or such charge during the period of ownership thereof by the Seller, an amount, if paid, equal to such taxes, assessments, or charges (as determined by the Seller assessing official) as would have been payable if the Property were not so exempt); any payments made or necessary to be made to 421009v4 CL205.49 discharge any encumbrances or liens existing on the Property or part thereof at the time of revesting of title thereto in the Seller or to discharge or prevent from attaching or being made any subsequent encumbrances or liens due to obligations, defaults or acts of the Buyer, its successors or transferees; any expenditures made or obligations incurred with respect to the making or completion of the Minimum Improvements or any part thereof on the Property or part thereof; and any amounts otherwise owing the Seller by the Buyer and its successor or transferee; and (b) Second, to reimburse the Buyer for the balance of the purchase price remaining after the reimbursements specified in paragraph (a) above. Such reimbursement shall be paid to the Buyer upon delivery of an executed, recordable warranty deed to the Property by the Buyer to the Seller. 17. Time is of the essence for all provisions of this contract. 18. Notices. All notices required herein shall be in writing and delivered personally or mailed to the address shown at paragraph 1 above and, if mailed, are effective as of the date of mailing. 19. Minnesota Law. This contract shall be governed by the laws of the State of Minnesota. 20. Specific Performance. This Agreement may be specifically enforced by the parties, provided that an action is brought within one year of the date of alleged breach of this Agreement. 21. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Seller or Buyer is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. 22. No Merger of Representations, Warranties. All representations and warranties contained in this Purchase Agreement shall not be merged into any instruments or conveyance delivered at closing, and the parties shall be bound accordingly. 23. Recording. This Agreement shall be filed of record with the Anoka County Registrar of Titles or Office of Recorder, as the case may be. Buyer shall pay all recording costs. 4210090 CL205.49 In witness of the foregoing, the parties have executed this agreement on the year and date written above. SELLER: COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY By: By Its President STATE OF MINNESOTA } ss. COUNTY OF ANOKA Its Executive Director The foregoing was acknowledged before me this day of 20 , by and the President and Executive Director of Columbia Heights Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. S -1 421009A CL20549 BUYER.: M STATE OF MINNESOTA } ss. COUNTY OF ANOKA Date The foregoing was acknowledged before me this _ , the of on behalf of the This document drafted by: Kennedy & Graven, Chartered 470 U.S. Bank Plaza Minneapolis, MN 55402 S -2 421009v4 CL20549 day of 20_, by a Minnesota SE4I:15R '6.01861 -08UH? AL'taRNATIVES ' Tnlslw e� ved DydwWnnosataAecoelan0n.of n9AMR6°, yplkndydNneoiryllab %kiadangoulof as ornitme of sale loon. ®fol2binrce9otaaccodaYnnvi nEAl9Aa8^, VIM, MN 1, Date. P. Pagel -oi a '.: pages .. Q. Properly located at • • ^ - ... 4. City of gu-A u .i t hba ; Countyct ? ° Stated Mlnriesote. 5. NOYICSr• SellarsdrestdaliUalpropeity,wtiti limited e>;copVOhs;areobligatedlosalisfy the rwdtltsn�dis losure to the ' .8. 613;S2 through 615,60,. To comply with the statute, 8eifermu4t provide atthor'a 7. pro'sryeotive B,uyer(soe Seller's prop'srtyA(sbfasurb S[atenlont?oreatlsfy.one attire following two options: 6. (so/gut p6Aopilon on1Y) . 0; ,1) p'. QUAIdPIEO THIROd?ARTY INSPECTION; Seller. shall provide to ;Prospective Buyer's wditen report that 10, discloses nm6rlaf infordation relating to ilia real properlyihalpas been prepared by a quw1fled third party. i.L "Qualllled third party" treahs a federal„ state or local goyerniuental agency, or,a't1y person wiwm Seller or M pr9spective'8uyer reasonably beifaves has the o>vodlse ne'c'essary tomselihalrutustry standdrds of pao.lho prrolho 13. 'forlhe type of inspection or Investigation that, has been conducted by tile third party In order to Pre 14. w0den report, 16, S'eilersfiall disclose 10 prospeotive 8uyermateriat feats known by Sellst 'thatcoirtradtgtahyrnforinatlon 10. MOOD included In a Written report, or material facts known by Setter that are not Included In the 17. report. ' lit. The' inspa011onreportwaspraparedby 19, 20, and -dated 2t. Selferdiscloses to euyerthof ollowi ng material facts lmown by Sailarthal contradict any information Included 22. inthe shove referenced Inspection report. 23, 24, 26: 27. Salter discloses to Buyer the following materlal facts known by $eller that are not Included In rho above 28. reforenoedinepoollon report, 29. a1, 32:. :. .. 33, WAIV. ER:(he written discicsure required may bewelved11SoUntnadlim peative5uyeeagreeInwriting .Seller 34. and 8u)14 hereby Waive the ivfitlori disclosure rsquiredunder MN:Slatutes 51, 3.62 through 613.6% 36. Nola: if boI6 Sellerand prospec6i anI yet agred,16 wrillfig,10 waNe thevrriilon diadosuro required fielder 36. MN Statutes 613.82 through 513,60. Sellarls�not obligated to disclose ANY materlai facts of Which .Soper 37; Is aware that oouid adverooly.anId slgniflcanfly ai(oot the 4uyeeic use or enjoyment of the property or'ari)f 38. Intended use of the property other than those dlsciosttm requtrementht created by spy other law. Soharie 39, n6t'06166ted to updsle.euyar on'any changes made to rnaleda('facts of which 'Salk is aware that could' 40. adversely and signllicontiy ailect Iha Buyer's use or en)oymmu of lhd property or any intended use of Ilia 0, proporty'that occur, . other than those disclosure requlromenfscroated by any other law- 42. Waiver of the disdasurs required under MN Statutes 513,52 ihrough 618.30 does 1101 waive, limit or 43, abridge any obligation'fdr Sailor disclosure created by any tither law. MN:SeA -I ;(10112) $ELLEA'$ QISC40SUF1E ALTEANATIVE�5 - AA. page's 45. Properly located at 46, OTHER AEQUIRED OMO.LOSURPS. , 47, NOTE In addition to eisoling�one of the sbnve aJtorna8vas to the material fact dtsctosure; Minnesota Fab also 46, requires sellereto provide other disold'sures to prospoottva huyors, ouch asihose:dlffclosures lisledbolow. 40. Additionally, glare may heomerrequlreddisclosuresbyFederal ; state, localar other.govemptentedentities 50, . that are hottisted below. 51.. A. SUBSURFACE SEWAGE Tl; ENT M ,ENT SYSTEM DISCLOSURE: (A subsurface sewage treatment system 52, disclosure Is required by.MN Sfafula 115,96.) (Qhack (Ppfopdate box) 53. Seller6 erli8es that 8eger[] DOES ]DOES NOT imow of a subsurface sewage troatmentsyetem on or 'serving "'r�OCaO "B'1 require a state permll, $od 54, tine obove•desprlhed, real propgrty.Itf answer 1s DOES, and the system dose not roq ' 85. Subsor7ace Sewage iroarmsnt Syffiem Disclosure Statement.) 50. C] Them(sa subsurface sawagatrealment' systemon orsohririg 111eabove•desa3bed foal properly. 57, (See SUbsur(aea Sewage Treatment System Dlsolosura Smfement) 56. [( ThereIsan abandoned sub6urfacesewage treatment cyclone onUtaaboue !described real properly. 5g, (See Subsudaoe Go wage Treatment Syafour Disclosure Steromdrit 60: B, fink E WE6.L DISOLOSUREi (A wall dlsclosUia end Certificate are required by MN Statute 1091:255.) 61, (chedk appropriate box) 62, 1@ Seller carWies that Seger doesnotknow of any wells on the above-dasorded real properly. 63, Q Seller car lies there are one or more wells Iodated on the, above -described relal property. 64. (See wen Dlsotosuro Statement,) 65. Are there any wells serving the above• desdribedpropOrlyihatalenotlocatedontheproperiy? []Yes C] No 60. Contaminated Welitis there a well on or serving the property that contains contaminated water? EIYes QNo 67. To your knowiedg' e, is the property Inb. Special Well ConstruollonArea? []Yes ❑No 68. Comments: us. C. VALUATION EXCLUSION' DISCLOSURE: (Required by MN Slalure 273,11, Subd. 16) 70, There 015 X IS NOT an exclusion from market va(oo for home improvements on the properly. Any valuallon ....ns Caro wnigati• rises 71. exotusbnshalRerinNale upon sale. oliheproperty, arltlVteproperly' sest imatedmarkelvaluoidrpmpody taapurp 72. shall' fncronse. If a valuation exciuslon exists, Buyers are encouraged to look into the 'resulting tax 73. conscquences, 74, Additional comments: 75. 781 D, METHAMPNETAMINE PRODUCTION DISOLOSUAM . 77. (A megtamphelamino production disclosure is required by MN Statute 152.0275, Subd.2 (m).) 78, 0 Seller is not aware of any merhamphetamtna production that has ocourrod on the properly. 70. ❑ Saherls aware that met hamphetamine production has occurredon the property. 80, (Sae Mefhamphslamlae ProdacNon Disclosure Srelement) - 81, h. NOTICE REGARDING AlkPORTZONINQ REGULATIONSi The properly mpayPOlin or nearanairporl safetyzone 82, withzoningregulalionsadoptedbythego0arningbodythatmayalteclthe properly. ouoliketod determine 83. 'filed with the county recorder In each county where the zoned bran Is located. Ityouvvoutd l8co to determino If ouch 84. zoning regulallorts Wool the property, you should contact the county recorder where the zoned area Islocated. MN:3M2 (101M. I1PAS 000 SELLER'S il1SOL QSURB AMIFINATTIVES 86, patio 3 .. .: 86, Propartybcaledat LA 4il 50% 61nia41 > Z L6-k-A0A ln N�ietr7s,` M0 s2"�'k 87. F NOT( CERCGARDINgCAft6ANMONCXItlSDE 'I'EC7ARS. 88. MN Statute 289F61 requires Oadwn Monoxide Detectors to be,lopated witiNrt ten (i0),1601! (MM All sleeg{ng 89. room's. Carbon Monoxtds Detectors may or may Apt bepeisanaf property and may or may not be'included In the - 90. sale Ol thetome. . 9t. G. 'WATER :INTRUSION AND MOLD GROWTH: Hecent studies hays siiown that various fame's of water intmelon 02. Affect many homes.Waler Ir" slon mayoccurfmaq adoriormdsture' entering the frame And)WInteHormoletwo 93. leaving (hs homed 94. BXamp106 of exterior moisture soumos may be 96, • Irtipropertfeshingaroundwindowsanddoors, 96. • Impropergrading, 07, • flooding; ' 98. toot leaks. 98, Cxamples of Interior rdolsture sources may be 100. • pfdmbinglea* 101, i conderisaden {caused by indoor humidity that is too high orsudaces that are too cold), 102, overflow from tubs, sinks or toilets, to$ drewood stored Indoors, 104. humkltferuse, 105. • Inadego'ale venlBlg of kllohon and bath humidity, . 196. Improper venting of clothes dryarexhaust Outdoors (Including eleottical dryers), 107. • line-drying laundry indoors, 108. • housep(anta- watering liters can generate (ergo amounts of moisture. 108. Inaddh io.lhe possible structural damage water Intrusion may do to the prdpeily, water Imrualon may also result 110, in the growth of mold, mildew and other fungi: Mold growth may also cause strdolural damage to the proporty. 111, Theref ore, Y is very Important to detect and remeciate water Intrusion problems. 112. Funglaropresent everywhereinourenvironment ,boil11ndoors and oUldoOfS -MW molds are. beneficial to humans. 118. Havever, molds hivotfie ability to produce mycbtoxlns.lhaimay have apoondal tocause sedoushea(th problems, 114, particularly In some Immunocompromised Indlvidnble and people who have asthma or allergies to mold. 116. Tocomplloalamatter$, mold grovvlhls often difficult todet act, asNirequen8y grows within me.walistruotu to. Ityou 116. have a concern About water Intrusion or the resulting moWhlldewllungi growth; you may ivanito consider having 117. the property inspected for moisture problems before entering Into d purchase agreement or as a condition of yo. ur 118. purchase agreement, Such an analysis is particularly advisable 9you obsorvo staining or any musty odors on the 119. property. . . 120. For additional Information about water Intrusion, Indoor sir, quit moisture or mbld Issues, please view the 121. Minnesota Association of REALTOW Desktop Reference Qldde aewwW rrMrealtorcom. 122: H. NOTICE, REGARDING PCtEoao.hy, DKFmDERJNFORMATIM. Information regarding tits predatory 128, offender registry and Parsons reglslored with the predatory. olfonder reglsiry under MN statute 248.188 124. may beobtainedbyoontaot ingthalocal. IawonforoementoglOesintbecommunilywit "O the Property .is 126, locatedoriheMlnnesota Department of Corrections at( 661) 381. 7200. or from the Depatmentof Carrecllons 128, we 6,ilteotwynwooiT.state.mn.11s., 127. I. ADDITIONALREAUiREODISOLOSURCS (e.g.,nity,munrolpal,county); 128. 129. 130. 131. I{ 132, I. exdsnaa 0onaj 1 fume s Lf SR's ofscl aSURE ALURfATI ES' .. .. .133; Page 4. .. . 134. J. SELLER'S STATEMENT: 136. (ro'beswoo4tumeoyllsfing•) ogj this hansAellontoprovlde • 136; Setler(s)hardyaulhorizeeanyl( tenses (s) ,representingorassislhganypa y(I ). 137.' Acopy of IN Olsolosure to' any person of entity In connoogon wl ny aclu or an pAted mI0.Of the property. (DOW). 13a, (sour) :. Pao), 139. K. BUYER'S/CKNOWLEOt3EMENT`Y: . 140. (Tobe'stonedatiimoolpur6Naeo .agreement.) 141; IMIe; iha 86yogs) of the'property, aolmowledgo, recefptof. this SELLERS oISOi oSURE ALTERNATNES form i42. and agraa, tcthsseli ova dt selasureop8onselectedhtthf sfamIlWOfur itieragree that noMp romniatl one rogarding 140, in Martel 'facts have been made, other than'those made In thts form. 144. (Dale) (acrid Nee) leWri . 145. L. SELLER'S ACKNOWLEDGEMENT; 146. (TO beef onedatdMe'otpurahaseagreemenr.) 147. AS.Op THE UA7L BELOW, the Seflor(s)of the property, slate that the MkOthil Isola are the same, except 148, for chang' ea as ludfoated below, WWOH have Neap aignedanddaled' 149, 16g. 151. 152: 183, 164. (oao) (sale,! 156, LISTINGRROKER. ANDI JCENSES $ MAKE NOREPRESENTATIONSAWDARE 157, NOT RESPONSIBLE M1 ANY 60NotTION9 RAVING INTHE PROPERTY. MNZOA4 (10112) jtprins" COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: June 3, 2013 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO:5 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Resolution 2013- 09 Affirming Blight BY: Scott Clark BY: Determination- 3927 Central Ave. DATE: May 28, 2013 BACKGROUND: In July or August of this year staff will be initiating the demolition of the Mady's building at 3927 Central Ave. North. An important consideration in this demolition is for the Economic Development Authority (EDA) to make, by resolution, a blight determination regarding the condition of the existing building. By doing this, the EDA preserves the right to include the building for up to three years, as part of the calculations for the establishment of a tax increment redevelopment district. If the determination is not made prior to the demolition, the EDA loses the ability to consider making this a redevelopment district as no structures would exist on the property. The test for the blight determination was done based on State statute and existing policies, and has been reviewed by the EDA Attorney. RECOMMENDATION: Staff recommends the motion as written. RECOMMENDED MOTION: Motion: Move to waive the reading of Resolution 2013 -09 there being ample copies available to the public Motion: Move to Approve structurally substandard. Attacnments: rces EDA ACTION: Resolution 2013 -09, Designating the building at 3927 Central Avenue as COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. 2013 -09 DESIGNATING BUILDING AT 3927 CENTAL AVENUE ASSTRUCTURALLYSUBSTANDARD BE IT RESOLVED By the Board of Commissioners (Board ") of the Columbia Heights Economic Development Authority ('Authority") as follows: Section 1. Recitals. 1.01. Under Minnesota Statutes, Section 469.174, subd. 10(d), the Authority is authorized to deem parcels as occupied by structurally substandard buildings despite prior demolition or removal of the buildings, subject to certain terms and conditions as described in this resolution. 1.02. The Authority previously acquired the property at 3927 Central Avenue in the City (the "Designated Property ") and intends to cause demolition of the building located on that properly. 1.03. The Authority may in the future include the Designated Property in a redevelopment or renewal and renovation tax increment financing district as defined in Minnesota Statutes. Sections 469.174, Subd. 10 and Subd. 10a, and to that end has determined to designate the existing building on the Designated Property to be substandard prior to demolition. Section 2. Building Designated Substandard, Proceedings. 2.01. The Authority finds that the building on the Designated Property is structurally substandard to a degree requiring substantial renovation or clearance, based upon the following: (a) "Report of Inspection Procedures and Results for Determining Qualifications of a Tax Increment Financing District as a Redevelopment District," dated October 17, 2005, prepared by LITB, Inc. (b) "Tax Increment Financing Eligibility Assessment, 3927 Central Avenue, Columbia Heights, MN," dated May 22, 2013, prepared by City Community Development Director, Assistant Community Development Director, and Building Official (which updated the 2005 study prepared by LI-IB). 2.02. After the date of approval of this resolution, the building on the Designated Property may be demolished or removed by the Authority, or such demolition or removal may be financed by the Authority, or may be undertaken by a developer under a development agreement with the Authority. 2.03. The Authority intends to include Designated Property in a redevelopment or renewal and renovation tax increment financing district, and to file the request for certification of such district with the Hennepin County auditor within three years after the date of building demolition on 4237970 CL205 -36 the Designated Properly. 2.04. Upon filing the request for certification of the new tax increment financing district, the Authority will notify the Anoka County auditor that the original tax capacity of the Designated Property must be adjusted to reflect the greater of (a) the current net tax capacity of the parcel, or (b) the estimated market value of the parcel for the year in which the building was demolished or removed, but applying class rates for the current year, all in accordance with Minnesota Statutes, Section 469.174, subd. 10(d). 2.05. Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. Approved by the Board of Commissioners of the Columbia Heights Economic Development Authority this 3rd day of June, 2013 President ATTEST: Secretary 423797vl CL205 -36 COLUMBIA HEIGHTS ECONOMIC DEVELOPMENT AUTHORITY (EDA) Meeting of: June 3, 2013 AGENDA SECTION: Business Items ORIGINATING EXECUTIVE NO:6 DEPARTMENT: EDA DIRECTOR APPROVAL ITEM: Subordination Agreement -4456 Monroe Street BY: Scott Clark BY: NE DATE: May 29, 2013 BACKGROUND: On July 23, 2008 Glenna Lewis, 4456 Monroe St. NE, received a $7,500 home improvement loan from the City's Economic Development Authority (EDA). The program rules defer any annual payment on the loan and full repayment occurs at the time of the sale of the subject property. There are a number of rules that apply to this program that are important to this item, these are: 1) The EDA's loan is always subordinate to the primary mortgage 2) When the EDA's original loan is given, the combined loan -to -value (CLTV) can't exceed 100% (CLTV is the value of the first mortgage phis the EDA's loan as a ratio to the assessed or appraised value of the property). In other words, if a house has an appraised value of $150,000, the value of the combined loans can't exceed $150,000. 3) Staff has processed in the past a number of refinancing requests on various home improvement loans, which calls for a new subordination agreement based on the attached policies. The applicant has made a request to refinance her home using a Federal home mortgage program called Home Affordable Refinance Program (HARP) which lowers her interest rate and extends terms. The purpose of HARP is to prevent foreclosures by significantly reducing monthly house payments. The problem with the subject application is that due to the depreciation of the home the CLTV is now at 108 %. This means that the value of the refinanced loan and the EDA loan is 8% higher than the appraised value of the home (approximately $115,000). Based on EDA policy staff can't administratively approve the refinancing since the CLTV must be 100% or lower. Staff is recommending that the EDA authorize the subordination since 1) The EDA's loan position is already in jeopardy since the CLTV is already at 108% due to the downturn in the market. 2) The applicant is simply trading the principal of the loan to a different loan and no cash equity is being taken out of the transaction 3) Allowing the transaction results in a significant monthly payment reduction which reduces the EDA's risk of foreclosure on the property and the loss of the EDA loan. In other words, if a foreclosure occurs the bank gets paid first and it is doubtful if proceeds would cover any repayment to the EDA loan. RE, COMMENDATION: Staff recommends granting a new subordination agreement based on the aforementioned rationale. If the EDA approves the subordination request, a formal resolution will be forwarded to the City Council. RECOMMENDED MOTION: Motion to approve the subordination request and submit a formal resolution for consideration of the City Council. EDA ACTION: May 27, 2013 To Whom It May Concern: I am asking for the City of Columbia Heights to allow me to refinance my home mortgage through the H.A.R.P. (Home Affordable Refinance Program) program. This is a federal funded program and is for mortgage holders who owe more on their mortgage then their house is currently worth. This program is literally just re- writing the mortgage at a lower interest rate. This allows the homeowner to have a lower mortgage payment and is designed to keep the homeowner in good standing with their mortgage. I think you will agree that this program will actually lessen the risk of foreclosure for the homeowner. I believe that allowing me to participate in this refinance opportunity will be to the advantage of and would greatly lessen the risk to the City of Columbia Heights. I am currently underwater on my mortgage. I want to participate in this refinance program to prevent any chance of foreclosure and to complete the terms of the lean on my home for siding. Below are the criteria for this program from the official H.A.R.P website: http:Hharpprogram.org 1. The mortgage MUST be owned or guaranteed by Fannie Mae or Freddie Mac 2. The mortgage MUST have been sold to Fannie Mae or Freddie Mac on or before May 31, 2009, 3. The mortgage CANNOT have been refinanced under HARP, previously unless it is a Fannie Mae loan that was refinanced under HARP from March -May, 2009. 4. The current loan -to -value (LTV) ratio MUST be greater than 80 % 5. The borrower MUST be current on the mortgage at the time of the refinance, with no late payment in the past six months and no more than one late payment in the past 12 months. 6. You have a reasonable ability to pay the new mortgage payments. T The refinance improves the long term affordability or stability of your loan. This is my only opportunity to lower my current interest rate and therefore to lower my mortgage payment. Please do not deny me this chance. I am a proud citizen of Columbia Heights. I would not do anything to jeopardize my standing or the city's trust in helping me to pay for siding my home and increasing its value. . Thank you for your anticipated cooperation. Sincerely, Glenna Lewis 4456 Monroe Street NE Columbia Heights, MN 55421 Economic Developneent Authority of the City of Columbia Heights SUBORDINATIONPOLICY INFORMATIONAL NOTE The terms of this policy and the associated fees may periodically change WHERE TO SUBMIT YOUR REQUEST: City of Columbia Heights 590 40 °i Ave NE Columbia Heights MN 763- 706 -3675 PROCESSING /REVIEW FEE: A $75.00 fee will be charged by the City for all subordination requests. In addition, the Servicer is entitled to a fee of $75.00 for processing each subordination request. An additional $50.00 per document may be charged by the Servicer for each additional document. The fee must be submitted with the request package. CONDITIONS FOR SUBORDINATION Subject to conditions identified below, a subordination may be granted to permit the mortgagor to benefit from an interest rate reduction or to shorten the term of their primary mortgage loan. This refinance may include any and all debt that is superior to the City of Columbia Heights debt in lien status and may also include cash from the equity of the home. In no instance may the combined loan -to -value (CLTV) of the City loan that would be superior in lien status exceed 100% after the new refinance is closed. Page 1 of 2 If the CLTV is above 80 %, cash may only be obtained to complete repairs and improvements to the home. Any cash proceeds must be escrowed with the mortgage company or title insurance company and cash disbursements may only occur after construction work is completed. Any remaining proceeds left over after the work is completed may go for additional work to the home or it must be paid to the Servicer of the mortgage loan to reduce the principal balance of the loan. (To avoid closing and escrowing the home improvement funds, the borrower may complete the project prior to closing and then obtain a refinance including the cost of the work that was completed. The borrower must clearly document all the expenses associated with that work by receipts. No reimbursement may occur for the borrower's own labor or for tools and equipment, except equipment rental. All work must be considered permanent attachments to the home.) 2. If the CLTV is 80% or less, the mortgagor may obtain cash without the completion of home repairs or improvements. 3. Except as provided for under number 2 above, under no condition may the borrower receive proceeds from the refinance transaction, except to reimburse expenses paid by the borrower during the loan process, i.e, credit report and appraisal fee. If any cash is identified as a result of changes in the closing transaction, it must be applied to the principal balance of the new loan. 4. The City reserves the right to deny any subordination request it deems not in its best interest. REQUIRED DOCUMENTATION.• The following documentation will be required to process /review loan subordination requests: • Outstanding principal balance of current loans(s), monthly payment(s), interest rate, and remaining term. Please indicate whether payment quoted is PI or PITI. • Correct legal description of property. • New mortgagee name as it will appear on the Note and Mortgage and name and phone number of the loan representative for the new mortgage. • Amount of the new mortgage, monthly payment (PI), interest rate, and term. • Proof of the present value of home (current appraisal, or if Streamline Refinance, a copy of the current County Assessor Tax Value Statement). • Copy of Good Faith Estimate • Copy of Title Insurance Commitment. • Completed CPED Lender Data Request Sheet. ORIGINAL SUBORDINA TIONA GREEMENT DOCUMENT. Upon receipt of the signed HUD -I Settlement Statement (signed by the mortgagors and the closer) the executed subordination agreement will be forwarded to the title company for recording. A copy of the recorded document must be returned to the Servicer when available. Page 2 of 2