HomeMy WebLinkAbout18-EDA-306EDA RESOLUTION IS -EDA -306
CITY OF MOUNDS VIEW
COUNTY OF RAMSEY
STATE OF MINNESOTA
A RESOLUTION CONDITIONALLY AUTHORIZING THE
ACQUISITION OF TAX -FORFEITED LAND AT A DISCOUNT FOR THE
DEVELOPMENT OF MULTI -FAMILY AFFORDABLE HOUSING
WHEREAS, two parcels of real property (PID 06.30.23.31.0031 and PID 06.3 0.23.31.024 1),
both of which are legally described on the attached Exhibit A (the "Property"), have forfeited to the
State of Minnesota in trust for the taxing districts for the failure to pay real estate taxes; and
WHEREAS, pursuant to Minnesota Statutes, section 282.01, Ramsey County manages the
Property and is authorized to sell the Property directly to an organized or incorporated governmental
subdivision of the state for any public purpose for which the governmental subdivision is authorized
to acquire property; and
WHEREAS, the Economic Development Authority of the City of Mounds View, Minnesota
(the "EDA") desires to purchase the Property and work with both the City of Mounds View,
Minnesota (the "City") and Boulevard Apartments, Limited Partnership (the "Developer") for the
development of a 60 -unit affordable housing complex (the "Development"); and
WHEREAS, the Development will consist of 60 units of affordable rental housing with a
mix of one-, two-, and three-bedroom units. Units will be rented to residents earning less than 60%
of the area median income with rents no greater than 30% of 60% of the area median income in
accordance with Section 42 of the IRS tax code. The Development will include underground parking,
a children's play area, on-site management, and a community room. It is anticipated that construction
will commence in October of 2018 and complete in September of 2019 with initial leaseup anticipated
to be complete in March of 2020; and
WHEREAS, the EDA and the City have entered into a Real Estate Option Agreement with
the Developer (the "Option Agreement"); and
WHEREAS, the Option Agreement authorizes the Developer to provide the EDA and the
City with written notice that will require them to make reasonable efforts to acquire the Property from
Ramsey County (the "Option Notice"); and
WHEREAS, the EDA, by virtue of its enabling resolution, possesses the authority of both
an economic development authority and a housing and redevelopment authority pursuant to
Minnesota Statutes, Section 469.091, subd. 1; and
WHEREAS, Minnesota Statues, Sections 469.101 and 469.012 authorize an economic
development authority and housing and redevelopment authority, respectively and collectively, to
acquire property for the purpose of redevelopment; and
Resolution 18 -EDA -306
February 26, 2018
Page 2
WHEREAS, Minnesota Statutes, section 282.01, subd, la(d) authorizes a county to sell
tax -forfeited property to a governmental subdivision at less than fair market value if (1) the reduced
price will lead to the development of affordable housing and (2) the governmental subdivision has
documented both its plans for developing affordable housing and the laws authorizing it to acquire
the property in furtherance of said plans; and
WHEREAS, Section 4.57.60 of the Ramsey County Administrative Code further allows
the Property to be purchased by a governmental subdivision for 25% of its market value, plus
maintenance costs and recording fees, on condition that the acquiring party enter into a
memorandum of understanding with the county providing that it will monitor and enforce
compliance with all applicable requirements contained in said Section 4.57.60 of the Ramsey
County Administrative Code, including, but not limited to, placing and enforcing a deed restriction
and/or declaration of restrictive covenant on the Property related to the ongoing affordability of
the multi -unit development; and
WHEREAS, the EDA wishes to acquire the Property from Ramsey County for the amount
provided in the price sheets contained in the attached Exhibit B and pursuant to the aforementioned
discount, for a total of $53,036.25 for the purpose of facilitating the Development, and further
wishes to enter into a memorandum of understanding with Ramsey County to ensure that the
discounted acquisition meets the requirements provided for in Section 4.57.60 of the Ramsey
County Administrative Code.
NOW THEREFORE, BE IT RESOLVED by the Economic Development Authority of the
City of Mounds View, Minnesota, as follows:
1. The EDA hereby approves the purchase of the Property from Ramsey County for
$53,036.25 for the purpose of a collaborative redevelopment project, as described
herein, between the EDA, the City, and the Developer.
2. The acquisition of the Property is conditioned on the EDA and the City first receiving
the aforementioned Option Notice from the Developer in accordance with the terms
of the Option Agreement.
3. Upon the receipt of the Option Notice from the Developer, EDA staff may provide a
copy of this Resolution to Ramsey County and may further enter into a memorandum
of understanding with Ramsey County, as approved by the EDA's attorney, related to
the requirement that the Property be used for affordable housing in accordance with
Section 4.57.60 of the Ramsey County Administrative Code.
0)
Resolution 18 -EDA -306
February 26, 2018
Page 3
4. EDA staff is hereby further authorized to take any and all necessary steps as may be
determined required to effectuate the acquisition contemplated by this Resolution.
Adopted on the 26`" day of February, 2018.
Attest:
Nyle cmund xecuti e Director
(SEAL)
Carol A. Mueller, President
EXHIBIT A
Legal Description of the Property
PID: 06-30-23-31-0031
Parcel 1. Lot 50, except that part which lies Southwesterly of a line run parallel with and distant
100 feet Northeasterly of the Southwesterly boundary of said Lot 50, also except that part described
as follows:
Commencing at the Northwest corner of said Lot 50; thence East 7 feet along the
North line of said Lot 50; thence Southerly 100 feet to a point of intersection on the
West line of said Lot 50; thence North along said West line of said Lot 50 to the point
of commencement; Auditor's Subdivision No. 89, Ramsey Co., Minn. The said
excepted part of the above described property, the Southwesterly 100 feet has been
taken by the State of Minnesota for public Highway purposes.
Parcel 2. All that part of Lot 32, Auditor's Subdivision No. 89, Ramsey Co., Minn., described as
follows, to -wit: Commencing at a point on the West line of Lot 50, Auditor's Subdivision No. 89,
which point is 100 feet South of the Northwest corner of said Lot 50; thence South to a line 100
feet Northeasterly from and parallel with the Southerly line of Lot 32; thence Northwesterly on
said parallel line 32 feet; thence Northeasterly to the point of beginning.
and,
PID: 06-30-23-31-0241
The South 135.00 feet, front and rear, of Lot 47, Auditor's Subdivision No. 89, lying westerly of
the East 187.00 feet.
A-1
516451v4 DTA MU20547
EXHIBIT B
Price Proposals for the Property
Ramsey County Propety Records and Revenue
Taxpayer Services, Tax Forfeited land
PO Box 64097
St. Paul, MN 55164-0097
Government Agency:
DATE:
PIN:
LOCATION:
RECORDING TYPE:
MARKET VALUE
DEVELOPER:
DEVELOPER STATUS:
USE:
PRICE DISCOUNT:
Purchase Price
3% Assurance Fee
RECORDING FEE:
STATE DEED FEE:
AG/CON STAMP:
DEED TAX STAMP:
PRIOR YEAR MAINTENANCE COST:
CURRENT YEAR MAINTENANCE COST:
TOTALCOST
City of Mounds View
1/16/2018
06.30.23.31.0031
2901 Highway 10 NE
Torrens
$171,700.00
MWF Properties
For-profit entity
Multi -unit: Affordable Housing
25% of Market Value
42,925.00
$1,287.75
$46.00
$25.00
$ 5.00
$145.95
$0.00
$0.00
$44,434.70
You will need to provide the following items:
1) Certified copy of your City Council Resolution
2) A check made payable to RAM5EY COUNTY in the amount of $ 44,434.70
If you have any questions please contact our office at (651) 266-2080,
B-1
516451v4 DTA MU205-47
Ramsey County Propety Records and Revenue
Taxpayer Services, Tax Forfeited Land
PO Box 64097
St. Paul, MN 55164-0097
Government Agency:
City of Mounds View
DATE:
1/16/2018
PIN:
06.30.23.31.0241
LOCATION:
0 Highway 10 NE
RECORDING TYPE:
Torrens
MARKET VALUE
$33,000.00
DEVELOPER:
MWF Properties
DEVELOPER STATUS:
For-profit entity
USE:
Multi -unit: Affordable Housing
PRICE DISCOUNT:
25% of Market Value
Purchase Price
$8,250.00
3% Assurance Fee
$247.50
RECORDING FEE:
$46.00
STATE DEED FEE:
$25.00
AG/CON STAMP:
$5.00
DEED TAX STAMP:
$28.05
PRIOR YEAR MAINTENANCE COST:
$0.00
CURRENT YEAR MAINTENANCE COST:
$0.00
TOTALCOST
$8,601.55
You will need to provide the following items:
1) Certified copy of your City Council Resolution
2) A check made payable to RAMSEY COUNTY in the amount of $ 8,601.55
If you have any questions please contact our office at (651) 266-2080.
B-2
516451 A DTA MU20547