07-12-2010 EDA Minutes - Laserfiche WebLink

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