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HomeMy WebLinkAbout4.b. Considerato of Development Agreement with the Dakota County Housing and Redevelopment Authority for the Construction of Senior Housing , CITY OF ROSEMOUNT 4 EXECUTIVE SU�IARY FOR ACTION PORT AUTHORITY MEETING DATE: DECEMBER 7, 1993 AGENDA ITEM: CONSIDERATION OF DEVELOPMENT AGENDA SECTION: AGREEMENT WITH THE D.C. HRA. FOR SENIOR HOUSING OLD BUSINESS PREPARED BY: JOHN MILLER, AGENDA NO. ECONOMIC DEVELOPMENT COORDINATOR 4 .B. �iTTACFIDSENTS: DRAFT DEVELOPMENT AGREEMENT, AP VED BY: COOPERATION AGREEMENT, MEMO FROM D. NORDQUIST � - ,,,�� Attached for your review and consideration are draft copies of a proposed development agreement between the Dakota County HRA and the Rosemount Port Authority and a cooperation agreement between the HRA and the city of Rosemount. These agreements are the follow-up to action taken by the port authority at its November 17, 1993 , meeting. As you will recall at that meeting, the board endorsed in general terms the Cameo Avenue site for the proposed 40 unit senior housing building. The development agreement establishes the responsibilities of the HRA and port authority. In brief, they are as follows: 1. The HR.A "shall be responsible for all aspects of . . . administering the project. ° 2 . The port authority will be responsible for approxima.tely $580, 000 for the acquisition of land and possible relocation of residents . � �3 . The money will come from two sources, 1) Rosemount CDBG funds and 2) excess tax increment finance funds. 4 . The HRA will sell bonds to finance the construction of the • building which it will operate for at least 20 years. Both documents are presented to you for your review and for tracking purposes . If the port authority approves the deuelopment agreement as presented or in an amended form, both the development agreement and the cooperation agreement will be presented to the city council . The cooperation agreement addresses issues such as rezoning and utility extension, items not the responsibility of the port authority. Please see the memorandum from Diane Nordquist for more detail . . RECO�lENDED ACT20N: Motion to approve the (amended) development agreemnt with the Dakota County HRA and to direct the port authority staff to submit the documents to the city council on December 21, 1993 . PORT AUTHORITY ACTION: � �� � L�AKOT.� COUNTY Housin�r�& Re��evel��ptnent�rluchc�cit�- _ -+_;_�;��o �� � � '-lu6-1-��rh 7t.�1'. • }<;,:c�nuunr.`1:�' S��(iti•T I`.L`.61'--}�i.�;;,_' • FAt t�i�.-{'3-,�l�J MEMORANDIIM TO: Port Authority, City of Rosemount FROM: Dakota County Housing & Redevelopment Authority DATE: December ?, 1993 SIIBJECT: SENIOR HOUSING DEVELOPMENT AGREEMENT AND COOPERATION AGREEMENT Attached is a Development Agreement and Cooperation Agreement for the proposed senior housing project in Rosemount. This Agreement encompasses the financial and site decision that shall be agreed to by the Rosemount Port Authority and the Rosemount City Council. The Agreement calls far the development of a 40-unit senior housing project by the Dakota County HRA at Cameo Avenue in between 146th Street and Upper 147th Street. Also, the Agreement reiterates the estimated budget presented at the last Port Authority meeting. This budget calls for a total of $580, 000 in funding for site acquisition, demolition, and relocation costs which consists of the church property and at least six residential properties. In the event that acquisition costs exceed the estimated budget due to the need of a larger site or in the event poor soils are encountered, the Agreement will be amended • at that time to accommodate any changes. ' The Dakota County HRA is excited to start this project and the possibility of providing attractive affordable senior housing in the City of Rosemount. Once this Agreement is executed by all three parties, the HRA will begin acquiring property pursuant to the 1994 budget. Tracie Chamberlin and Diane Nordquist of our office will be at your Port Authority meeting to answer any questions you have concerning this matter. Attachments � .AN EQUAL OPPORTliNITY E�iPL01�ER" � � � � � DEVELOPMENT AGREEMENT This Agreement is made and entered into this 7th da of Decembe 1993 Y r. by and among THE DAKOTA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY ("DCHRA") , 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 ("City") , a municipal corporation organized and existing under the laws of the State of Minnesota. WHEREAS, DCHRA is in the process of developing and carrying out a development within the City which it is intended will result in the construction of a 40-unit senior rental facility (the "Project") ; and WHEREAS, the City and RPA believe that the successful undertaking and completion by DCHRA of the Project will be of substantial benefit to the City and its residents; and WHEREAS, the City and RPA desire to assist DCHRA in the development of the Project; and WHEREAS, DCHRA 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 of the project will require infusion of funding from sources other than DCHRA; and WHEREAS,, the parties hereto desire to set forth their understandings as to the sources of such funding in order to provide the DCHRA 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 City, DCHRA, and RPA do hereby agree as follows: Section 1. DCHRA Proiect Activities. DCHRA 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 DCHRA 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 City agrees to cooperate in DCHRA'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. Section 2. a. ) FundinQ. It is presently anticipated that in order to accomplish the acquisition of all parcels necessary to undertake the Project, it will involve the expenditure of approximately $580,000. The City, RPA, and DCHRA agree that such acquisitions will be funded through the use of RPA tax increment financing funds and City Community - 2 - Development Block Grant funds, in the years and in the amounts set forth below: Acquisition Source 1994 1995 1996 1997 Totals Rosemount TIF Funds 0 56 55 55 $166,000 City CDBG Grants *264 0 150 0 $414,000 264 56 205 55 $580,000 * Includes reprogrammed 1992 CDBG funds b. ) Additional Fundincx. It is anticipated that the dollar amount indicated in section 2 (a) (the "Estimated Project Acquisition Cost") will be sufficient to permit the DCHRA 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 Costs 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 comply with the City zoning or subdivision ordinances, or due to any other factor which prevents the DCHRA from assembling a site for the Project within the Estimated Project Acquisition Costs, 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 DCHRA 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 this time and will be provided at the ' times and in the amounts set forth in Section 2 above, it is intended that properties will be acquired from willing sellers on a lottery basis. DCHRA will provide notices to owners of properties on which the Project is proposed to be located informing such owners that DCHRA is interested in acquiring their property and that such owners should respond if they desire to have their properties acquired by Dakota County HRA. 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 Sate 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 DCHRA on a lottery basis. If no such owners respond, then owners who request DCHRA to acquire their properties will have their properties acquired on a lottery basis to be conducted by DCHRA. Properties will be acquired if and to the extent that funding is available to DCIiRA according to the funding schedule set forth in Section 2 above. 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. - 3 - 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 Agreement. It is anticipated that as of December 21, 1993 the City and DCHRA will enter into a Cooperation Agreement, a copy of which Cooperation Agreement is attached hereto as Exhibit A. Such Cooperation Agreement is intended to set forth the agreements, and payments in lieu of taxes during the operation of the Project. DCHRA and the City agree that it may, in the future, be necessary to make certain modif ications 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 modif ications. Section 5. Project Timinq. It is presently anticipated that if DCHRA is able to acquire all properties on which the Project is to be located, actual construction of the Project may commence in 1997. At such time, DCHRA intends, subject to; applicable law and feasibility analyses, to issue housing bonds in order to finance such development. DCHRA intends that it will operate the Project a senior rental _ facility for a period of not less than 20 years. �hereafter, the use may be changed with the approval of all the parties to this Agreement.�� v Section 6. Termination of Agreement. This Agreement may be terminatec��� by written agreement of all of the parties hereto and shall be�.W o terminated at such time as DCHRA has repaid the principal and interest� on any bonds or other f inancing obtained to f inance construction of the Project. - 4 - IN WITNESS WHEREOF, the parties have executed this Agreement as of the day and year first written above. 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 EXHIBIT A COOPERATION AGREEMENT By and between DAKOTA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY and . CITY OF ROSEMOUNT COOPERATION AGREEMENT THIS AGREEMENT entered into this 21st day of December, 1993, 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 recommended a senior housing project to the Municipality and has requested the Municipality to identify an acceptable site for the Authority to use for the location of the senior housing development; and WHEREAS, at the December 7, 1993, 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, Section 469.017; excluding, however, any rental housing project developed or acquired 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" sha11 mean the State or any political subdivision of 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. 1 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. 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 40 rental units. The obligations of the parties hereto shall apply to the Project. 3. Pursuant to Minnesota Statutes, Section 469.040: (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 shall 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 retires any obligations issued 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 not 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 respect 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 against such Project if it were not 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 3 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 2 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; (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 the 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 Project, and at the same time safeguard health and safety, and (ii) make such changes in any zoning of the site and surrounding territory of such Project as are reasonable and necessary for the deveiopment and protection of such Project; and surrounding territory; (d) Accept grants of easements necessary for the development of such Project; and (e) Cooperate 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 will grade, improve, pave, and provide sidewalks for all streets bounding the Project necessary to provide adequate access thereto (in consideration whereof the Authority shail 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) . 3 - � , 6. No Cooperation Agreement heretofore entered into between the Municipality and the Authority shall be construed to apply to a Project covered by this Agreement. 7. No member of the governing body of the Municipality or any other public official of the Municipality who exercises any responsibilities or functions with respect to the Project 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 official 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 held 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 ROSEMOUNT (SEAL) (Mayor) Attest: • (Acting City Manager) (City Clerk) THE DAKOTA COUNTY HOUSING AND REDEVELOPMENT AUTHORITY (SEAL) (Title) Attest: Secretary 4 � ROSEMQUNT PORT AOTHORITY MEETING DECEMBER 7, 1993 * * * * * DAROTA COONTY HOOSING & REDEVELOFMENT AUTHORITY PROPOSED 40 IINIT SENIOR 80USING DEVELOPMENT I. DEVELOPMENT AGREEMENT - This Agreement is to be entered into by and among the Dakota County HRA, the RQsemount Port Authority, and the City of Rosemount. The key items and activities specified within the document are as follows: A. The Dakota Caunty HRA will build and operate a 40 unit senior housing development, B. The City and Port Authority will provide funding necessary for site acquisition, relocation, and demolition. C. The preiiminary Acquisition/Relacation/Demolition Budget totals $580,000 and is based on the following assumptionss 1. Acquisition of chureh property and six residential properties based upon assessed value: $473, 000 2. Average relocation/moving benef its for six residential properties: $ 72,000 3. Demolition of church and six residential properties based on past experience: $ 35, 000 D. Funding sources include the City Community Development Block Grant funds and City Tax Increment funds. E. Modifications to the budget and/or Agreement are to be negotiated by all parties in good faith. ` - F. The process of acquisition and relocation is based on both the willingness of sellers and a lottery. G. Upon execution of these Agreements, the Dakota County HRA wili work with the City to begin site acquisition activities. H. It is expected that project construction will commence in 1997. At sueh time HRA wi11 issue bonds to' finance the project and the HRA will operate the project as a senior faci.lity for not less than 20 years. , II. COOPERATION AGREEMENT - This Agreement is attache:d" to the Development Agreement as Exhibit A and is to be entered into by and between the Dakota County HRA and the City of Rosemount. This Agreement indicates that: A. The project site is located at Cameo Avenue in between 146th Street and Upper 147th Street B. The project is a 40 unit senior housing deveiopment available to lc�w and moderate ineome persons aged 55 and older. C. The project shall -be tax exempt with IIakota County HRA making a payment in lieu of taxes. D. The City agrees to supply customary utilities and grant any necessary easements. E. The City agrees to rezone the property ta multi-family residential as per the City-established rezoning pracess. F. The Dakota County HRA agrees to pay assessments for project-related sidewalks, water and sewer. mains to be constructed by the City. Attachments: 1. Acquisition Budget 2. Scheme 1 - Site Map 3. Scheme 1 - Concept Plan 4. Scheme 2 - Site Map 5. Scheme 2 - Concept Plan Rosemount Senior Site A�c uis=ion $�� � ��� �22. �!� .�2� ,� �� Rosemount TIF Funds 0 56 55 55 $166,000 City CDBG Grants *264 0 150 0 �4�,14.OflQ 264 56 205 55 $580,000 * ��lu���o��a i�cDBc�a� -- � � -� � L � 1 i � � (._.L_1..z:�1111�1_�.1�:_1_._t�►_t.�Ct_�u-�-•- -�--1 'j-=�---- ._..._! � . V • �q l (pT�/ 7� W ' • u � r ��w .. . . . � � � � . r� j j � �� � �/� �fG yS yy S'3 f�z �/i f/o �9 3 � 36 .Ss =y 3s �� 3i 3u 2� .. _.... . . ._ . ----- > � -- ... _._ ..- -�- -. o . . .. � �. � • -- -. - - . 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