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1 DRAFT 2 3 CITY OF LINO LAKES 4 ECONOMIC DEVELOPMENT AUTHORITY 5 MINUTES 6 7 DATE : July 12, 2010 8 MEMBERS PRESENT : D. Roeser, K. Gallup, J. O'Donnell, J. Reinert, R. 9 Rafferty 10 MEMBERS ABSENT : none 11 OTHERS PRESENT : Mary Divine, Dan Tesch, and Julie Bartell 12 13 14 Meeting called to order by President Rafferty at 6:20 p.m. 15 16 CONSIDERATION OF MINUTES OF JANUARY 11, 2010 17 18 EDA Member Gallup moved to approve the January 11, 2010 minutes, as presented. EDA 19 Member Reinert seconded the motion. Motion passed unanimously. 20 21 CONSIDERATION OF RESOLUTION NO. 10-01 APPROVING A FIRST 22 AMENDMENT TO CONTRACT FOR PRIVATE DEVELOPMENT AND 23 SUBORDINATION AGREEMENT BETWEEN THE LINO LAKES ECONOMIC 24 DEVELOPMENT AUTHORITY AND LINO LAKES HOUSING LIMITED 25 PARTNERSHIP — Mary Divine explained that the Cottages at Willow Ponds was developed 26 under contract with the city as a project in 1995. The contract includes the provision of some tax 27 increment financing for the development of senior housing and, in addition, the contract imposes 28 a restrictive covenant that the project be occupied by seniors (at least 55 years old), and remains 29 in effect until at least 2026. A proposed purchaser of the project, Mr. Charles Reisenberg is 30 acquiring a Department of Housing and Urban Development (HUD) insured loan which would 31 require subordination of the city's covenant. The city has indicated that they want to ensure that 32 the senior requirement remains in place. Ms. Divine explained that HUD has now agreed to 33 include its own housing covenant within its documents that requires that units be occupied by at 34 least one person who is 62 years of age. The covenant would remain in place as long as the loan 35 (35 years). The developer is also agreeing to replace the original senior housing covenant with a 36 new one that imposes the 55 age restriction through 2045 so that it would remain in place even if 37 the mortgage were to be paid off. HUD will also add language to their regulatory agreement that 38 the developer will not be allowed to modify the covenant without prior written consent of the 39 EDA. Barring foreclosure on the property, the attorneys feel this pretty much covers the city's 40 concern for this project to remain as senior housing. 41 42 Mr. Reisenberg, general partner of the Lino Lakes Housing Limited Partnership, 162 South 43 Mississippi River Boulevard, St. Paul, Minnesota, stated that the thorough and engaging meeting 44 held previously with the council has come to a good conclusion and a good proposal. 45 46 EDA Member O'Donnell moved to approve Resolution No. 10-01 as presented. EDA Member `. 47 Roeser seconded the motion. Motion carried unanimously. 48 49