HomeMy WebLinkAbout5.a. Consideration of Revised HRA Agreement for Senior Housing DevelopmentI
, • CITY OF ROSEMOUNT
, EXECUTIVE SUNIlKARY FOR ACTION
PORT AUTHORITY COMMISSION MEETING DATE: January 4, 1994
AGENDA ITEM: Revised HRA Agreement AGENDA SECTION: Comm.
of the Whole Reports
FREPARED BY: John Miller, AGENDA NO. Item 5
Economic Development Coordinator
ATTACffi�iENTS: Revised Development Agreement APP E .
Cooperative Agreement, and Correspondance �.
At the Port Authority' s December 7 meeting, representatives for the Dakota
County Housing and Redevelopment Authority reviewed the amended development
and cooperative agreements with the Commissioners .
Tracie Chamberlain, one of the HRA representatives, has revised Section 6
in the attached development agreement to meet the Commissioners wishes . If
both documents are now satisfactory to the board, a motion to approve the
Development Agreement and to recommend to the City Council approval of the
Cooperative Agreement is in order. The Commissioners also have the
opportunity to amend the documents before approval .
0
RECO2�=:E2v�ED ACTION: Ni0TI0N to approve thp Development Agreement (as
amerldect) wi�h the Dako�� County riRA to develop a 40 urit senior housing
iproject in Rosemount .
� NOTION to recommend to the Cit� Council approval of the Cooperative
Acrreement with the Dakota County HRA and to dirAct the Port Authority' s
Executive Director to present a project plan and project budget to the
City Council for approval .
PORT AUTHORITY ACTION:
� �` , i/ �i/ �,/
)AKOTR COUNTY Housin� & Redevelo�ment Authority �iZ-a�3-4Roo
� 2496-145th St.W.• Rusemounc,MN 55068�T.D.D.612-423-St82•FAX 612-423-8180�
December 28, 1993
Mr. John Miller
City of Rosemount
2875 145th Street West
Rosemount, MN 55068
Dear John:
Enclosed please find three copies of the groposed Development
Agreement to be entered into by the Rosemount Port Authority (RPA) ,
the City of Rosemount (City) and the Dakota County Housing and
Redevelopment Authority (Authority) . Attached to the Develapment
Agreement as Exhibit "A" is the Cooperation Agreement to be entered
into by the City and the Authority.
The revisions to the Development Agreement as presented and
discussed at the Rosemount Port Authority work session on the
evening of Tuesday, December 21, 1993, have been incorgorated. One
change that was not completed prior to that meeting, but was
facilitated after discussion at the meeting is as follows:
Development Agreement, page 3, Section 6 was changed from:
Section 6. Termination of Agreement. This Agreement may
be terminated by written agreement of all of the parties
hereto, and shall be terminated at sueh time as the
Authority has repaid the principal and interest on any
bonds or other financing obtained to finance construction
of the Project.
Development Agreement, page 3, Section 6 was changed to:
Section 6. Termination of Agreement. This Agreement may
be terminated by written agreement of all of the parties
hereto.
Diane Nordguist and I plan to be in attendance at the Rosemount
Port Authority meeting scheduled for January 4, 1994. If you have
any questions or concerns with which we can assist you prior to
that time, please do not hesitate to contact Diane (423-8112) or me
(423-8116) . Thank you.
Sincerely,
c..,.f.,�--t-;�"�'���.."
Tracie L. Chamberlin
Assistant to Executive Director
Enclosures
"AN EQUAL OPPORTUNI7Y EViPLO�'ER°� � � �
DEVELOPMENT AGREEMENT
This Agreement is made and entered into this day of Januarv, 1994
by and among THE DAKOTA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY
("Authority") , a public body politic and corporate, THE PORT AUTHORITY
IN AND FOR THE CITY OF ROSEMOUNT, MINNESOTA ("RPA") , a public body
politic and corporate and THE CITY OF ROSEMOUNT ("Municipality") , a
municipal corporation organized and existing under the laws of the
State of Minnesota.
WHEREAS, the Authority is in the process of developing and carrying out
a development within the Municipality which it is intended will result
in the construction of a 40-unit senior rental facility (the
"Project") ; and
WHEREAS, the Municipality and RPA believe that the successful
undertaking and completion by the Authority of the Project will be of
substantial benefit to the Municipality and its residents; and
WHEREAS, the Municipality and RPA desire to assist the Authority in the
development of the Project; and
WHEREAS, the Authority intends at this time to proceed with the
acquisition of portions of the property on which the Project is
intended to be located, and
WHEREAS, the ultimate viability and economic feasibility af the project
will require infusion of funding from sources other than the Authority;
and
WHEREAS, the parties hereto desire to set forth their understandings as
to the sources of such funding in order to provide the Authority with
a level of assurance regarding the Project's longer term economic
viability; and
WHEREAS, the parties desire to enter into this Agreement pursuant to
Minnesota Statutes, Section 469.041 and 471. 59, and other relevant
statutes to set forth their understandings concerning the undertaking
of the Project.
NOW, THEREFORE, the Municipality, the Authority, and RPA do hereby
agree as follows:
Section 1. Authority Proiect Activities. The Authority shall be
responsible for all aspects of undertaking and administering the
Project. Such activities shall include, but not be limited to, the
acquisition of all properties necessary for the Project, including the
use of eminent domain if the Authority determines such use to be
necessary and desirable, the rezoning of the Project properties and the
obtaining of the financing and construction of the Project; provided,
that the Municipality agrees to cooperate in the Authority's efforts to
rezone the Project site to multiple residential zoning. All
acquisitions shall be undertaken in accordance with Section 3 of this
Agreement. The funding of the acquisitions shall be as set forth in
Section 2 of this Agreement.
� - 2 -
Seetion 2 . a) Fundinct. It is presently anticipated that in order to
accomplish the acquisition of alI parcels necessary to undertake the
Project, it wi11 involve the expenditure of approximately $580, 000.
The Municipality, RPA, and the Authority agree that such acquisitions
will be funded through the use of RPA tax increment financing funds and
Municipality Community Development Block Grant funds, in the years and
in the amounts set forth below:
Estimated Project Acquisition Costs
Source 1994 1995 1996 1997 Totals
Rosemount TIF Funds 0 56 55 55 $166, 000
City CDBG Grants *264 0 150 0 5414 , 000
264 ; 56 205 55 $580, 000
* Includes reprogrammed 1992 CDBG' funds
b) Additional Fundincr. It is anticipated that the dollar amount
indicated in section 2 (a) (the "Estimated Project Acquisition Cost")
will be sufficient to permit the Authority to acquire and assemble a
site with the required number of square feet to facilitate construction
of the Project. In the event acquisition costs exceed the Estimated
Project Acquisition Cost due to the need to correct poor soil
conditions, the existence of environmentally "hazardous substances" as
defined at Minnesota Statutes, Chapter 115B, the need to acquire
additional land in order to camply with the Municipality zoning or
subdivision ordinances, or due to any other factor which prevents the
Authority from assembling a site for the Project within the Estimated
Project Acquisition Cost, then all parties will mutually agree to
equitably fund the excess of the Estimated Project Acquisition Cost.
Section 3 . Selection of Acquisition Properties. Properties to be
acquired by the Authority shall be selected in the manner provided in
this Section. Because .the funding to undertake such acquisitions will
not be available in its entirety at t2iis time and will be provided at
the times and in the amounts set for�h in Section 2 above, it is
intended that properties will be aequired from willing sellers on a
lottery basis. The Authority will provide notices to owners of
properties on which the Project is proposed to be located informing
such owners that the Authority is interested in acquiring their
property and that such owners should respond if they desire to have
their properties acquired by the Authority. Owners will be further
informed that properties which are unoccupied, as well as properties
the owners of which have executed waivers of relocation benefits and
services under State and federal law, will be given priority in the
selection process. Owners of properties which are unoccupied and
owners who have executed relocation waivers will have their properties
acquired by the Authority on a lottery basis, If no such owners
respond, then owners who request the Authority to acquire their
properties will have their properties acquired on a lottery basis to be
� - 3 -
conducted by the Authority. Properties will be acquired if and to the
extent that funding is available to the Authority according to the
funding schedule set forth in Section 2 above. A11 acquisition and
relocation activity will follow the federal regulations and procedures
as required under the Uniform Relocation Assistance and Real Property
Acguisition Policies Act of 1970.
All parties agree and understand that the obtaining of relocation
waivers from prospective sellers of property may give rise to claims
for liability for relocation benefits or services under applicable law.
To the extent that any such claims arise and are found to be valid, the
amount of such claims may be considered a project cost to be shared by
the parties.
Section 4. Cooperation Aareement. It is anticipated that as of
January, 1994 , the Municipality and the Authority wi11 enter into a
Cooperation Agreement, a copy of which Cooperation Agreement is
attacYied hereto as Exh�bit A. Such Cooperation Agreement is intended
to set forth the agreements, and payments in lieu of taxes during the
operation of the Project. The Authority and the Municipality agree
that it may, in the future, be necessary to make certain modifications
to the Cooperation Agreement in order to insure the continued economic
viability of the Project subsequent to construction of the Project, and
each agrees that it will negotiate with the other in good faith
concerning any such proposed modifications.
Sectian 5. Pro�ect Timinct. It is presently anticipated that if the
Authority is able to acquire all properties on which the Projeet is to
be located, actual construction of the Project may commence in 1997.
At such time, the Authority intends, subject to applicable law and
feasibility analyses, to issue housing bonds in order to finance such
development. The Authority intends that it will operate the Praject as
a senior rental facility for a period of not less than 20 years.
Thereafter, the use may be changed with the approval of all the parties
to this Agreement.
Section 6. Termination of Agreement. This Agreement may be terminated
by written agreement of all of the parties.
_ 4 _
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
day and year first written abave.
DAKOTA COUNTY HOUSING AND
REDEVELOPMENT AUTHORITY
By
Its Chairperson
By
Its Secretary
THE PORT AUTHORITY IN AND FOR
THE CITY OF ROSEMOUNT
By
Its
By
Its
_ THE CITY OF ROSEMOUNT,
MINNESOTA
By
Its
By
Its
EXHl81T A
��� ������������==��������������I������������������������i��������� � .
�� ��� l�������������������������������������������
COOPERATI4N AGREEMENT
By and between
DAKOTA COUNTY HOUSiNG AND
REDEVEL4PMENT AUTHORtTY
and
o CITY OF ROSEMOUN7
---=-----------------------------------==-=---=----------�--
COOFERATION AGREEMENT
THIS AGREEMENT is entered into this day o� January, 1994, by
and between The Dakota County Housing and Redevelopment Authority
(herein called the "Authority") and the City of Rosemount (herein
called the "Municipality") ;
WHEREAS, the Authority has recammended a senior housing project to
the Municipality and has requested the Municipality to approve an
acceptable site for the Authority to use for the location of the
senior housing development; and
WHEREAS, at the January, 1994, Rosemount Port Authority meeting,
the Port Authority approved and forwarded the following site to the
Authority for consideration:
Located along Cameo Avenue between 146th Street and Upper
147th Street.
WHEREAS, the Authority will select one of two layouts on the site
for the development as described below;
WITNESSETH:
In consideration of the mutual covenants hereinafter set forth, the
parties hereto do agree as follows:
1. Whenever used in this Agreement:
(a) The term "Project" shall mean a rental housing
development for low or moderate income persons with a
family member aged 55 or older hereafter developed or
acquired by the Authority pursuant to Minnesota Statutes,
Seetion 469. 017; excluding, however, any rental housing
project developed or aequired by the Authority with
financial assistance of the United States of America
°acting through the Secretary of Housing and Urban
Development ("HUD") and excluding any rental housing
project covered by any contract for loans and annual
contributions entered into between the Authority and HUD,
or its predecessor agencies.
(b) The term "Taxing Body" shall mean the State or any
political subdivision or taxing unit thereof in which a
Project is situated and which would have authority to
assess or levy real or personal property taxes or to
certify such taxes to a taxing body or public officer to
be levied for its use and benefit with respect to a
Project if it were not exempt from taxation.
c) The term "Shelter Renter" shall mean the total rentals of
a Project exclusive of any charge for utilities and
special services such as heat, water, electricity, gas,
sewage disposal or garbage removal.
1
2 . The Authority shall endeavor to develop or acquire and
administer a Project located within the corporate limits of
the Municipality containing, in the aggregate, approximately
50 rental units. The obligations of the parties hereto shall
apply to the Project.
3 . Pursuant to Minnesota Statutes, Section 469 . 040c
(a) the project shall be exempt for all taxes of the
Municipality, Dakota County, the State of Minnesota or
any political subdivision thereof, provided however, that
when any obligations issued by the Authority to assist in
financing the development of a Project have been retired,
then the exemptions from taxes sha11 terminate and;
provided further, that the Authority hereby agrees to pay
when due any special assessments levied for improvements
benefitting the property; and
(b) notwithstanding the provision set forth in (a) above,
after the Project has become occupied, either in whole or
in part, and before the Authority retixes any obligations
i'ssued by it to assist in financing such Project, the
Authority shall file with the property assessor, on or
before May 1 of each year, a statement of aggregate
shelter rentals of that project collected during the
preceding calendar year; and five percent (5$) of such
rentals (but in any event nat exceeding the amount which
would be payable in taxes if the Project were not exempt
from taxation) shall be charged to the Authority and
collected from it as a service charge for the services
and facilities to be furnished with resgect to that
Project, collected in the manner provided by law for the
assessment and collection of taxes. The amount so
collected shall be distributed to the several taxing
bodies in such proportions as the tax rate of each bears
to the total tax rate of those taxing bodies that would
be levied aga�nst such Project if it were nat exempt from
taxation.
4 . During the period commencing with the date of the acquisition
of any part of the site of the Project and continuing so long
as any bonds issued in connection with such Project remain
- unpaid, the Municipality without cost or charge to the
Authority or the tenants of such Project (other than the
payments set forth in 4 above) shall:
(a) Furnish or cause to be furnished to the Authority and the
tenants of such Project public services and facilities
(not including heat, water, electricity, gas, sewage
disposal or garbage removal) of the same character and to
the same extent as are furnished from time to time
without cost or charge to other dwellings and inhabitants
in the Municipality;
2
(b) Vacate such streets, roads, and alleys within the area of
such Project as may be necessary in the development
thereof, and convey without charge to t�ie Authority such
interest as the Municipality may have in such expenses to
the Authority or to the Municipality, cause to be removed
from such vacated areas, in so far as it may be
necessary, all public or private utility lines and
equipment;
(c) In so far as the Municipality may lawfully do so, (i)
grant such deviations from the building code of the
Municipality as are reasonable and necessary to promote
economy and efficiency in the development and
administration of the Project, and at the same time
safeguard health and safety, and (ii) will consider
making such changes in any zoning of the site and
surrounding territory of such Project as are reasonable
and necessary far the development and protection of such
Project; and surrounding territory;
(d) Accept grants of easements necessary for the development
of such Project; and
(e) Caoperate with the Authority by such other lawful action
or ways as the Municipality and the Authority may find
necessary or convenient in connection with the
development and administration of such Project.
5. In respect to the Project, the Municipality further agrees
that within a reasonable time after receipt of a written
request therefore from the Authority:
(a) It will accept necessary dedications of land for, and
wil2 grade, improve, pave, and provide sidewalks for all
streets bounding the Project necessary to provide
adequate access thereto (in consideration whereof the
Authority shall pay to the Municipality such amount as
would be assessed against °the Project site for such work
if such site work were privately owned) ; and
(b) It will provide, or cause to be provided, water mains,
and storm and sanitary sewer mains, leading to such
Project and serving the bounding streets thereof (in
consideration whereof the Authority shall pay to the
Municipality such amount as would be assessed against the
Project site for such work if such site were privately
owned) .
6. No Cooperation Agreement heretofore entered into between the
Municipality and the Authority shall be construed to apply to
a Projeet covered by this Agreement.
7 . No member of the governing body of the Munieipality or any
other public official of the Municipality who exercises any
responsibilities or functions with respect to the Project
" 3
• � y. . � � � � . � .
during his tenure or for one year thereafter shall have any
interest, direct or indirect, in the Project or any property
included or planned to be included in the Project, or any
contracts in connection with such Project or property. If any
such governing body member or such other public afficial of
the Municipality involuntarily acquire or had acquired prior
to the beginning of his tenure of any such interest, he shall
immediately disclose such interest to the Authority.
8. This Agreement shall not be abrogated, changed, or modified
without the written consent of the parties hereto. The
privileges and obligations of the Municipality hereunder shall
remain in full force and effect with respect to the Project so
long as the beneficial title of such Project is heid by the
Authority.
IT WITNESS WHEREOF the Municipality and the Authority have
respectively signed this Agreement and caused their seals to be
affixed and attested as of the day and year first above written.
CITY OF ROSEMOiJNT
(S�) (Mayor)
Attest:
(City Manager)
(City Clerk) ,
THE DAKOTA COUNTY HOUBING AND
REDEVELOPMENT AUTHORITY
(SEAL) ,
(Title)
Attest:
Secretary
4