HomeMy WebLinkAboutCC PACKET 05301989 Meeting Sheet
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Box: 18
Folder: CC PACKETS 1987-1989
Document: CC PACKET 05301989
•
CITY OF ST. ANTHONY
SPECIAL MEETING OF THE CITY COUNCIL
AGENDA
MAY 30, 1989
6:00 P.M.
CITY COUNCIL CHAMBERS
I. Call to Order.
II. Roll Call.
III. Action Items.
• A. Resolution 89-015, re: Supporting the
candidacy of Clarence Ranallo as League of
Minnesota Cities Vice President.
B. Evergreen Townhouses:
1. Ordinance 1988-005, re: zoning change
(3rd reading) .
2 . Resolution 89-013, re: Approval of
Evergreen Redevelopment Plan.
3 . Resolution 89-014, re: Approval of the
land transfer from the City to the
H.R.A.
4 . Final Plat.
IV. Adjournment.
CITY OF ST. ANTHONY
ORDINANCE 1988-005
The City Council of the City of St. Anthony ordains:
Section 1 . The City Zoning Map adopted by Section 300 of
the 1973 Code of Ordinances is amended as to the following
described lands located in Ramsey County:
Block 2 and Lots 1 , 2 , and 3 of Block 4 ,
Mounds View Acres Second Addition
by changing the use district from R-1 , Single Family
Residence District, to R-3 , Townhouse Residence District.
Section 2 . This Ordinance shall be effective as of its
date of publication.
First Reading: May 24 , =1988
Second Reading: June 14 , 1988
Adopted: May 30 , 1989
Mayor
ATTEST:
City Clerk
Published in the St. Anthony Bulletin on
•
Member introduced the following
resolution and moved its adopted:
RESOLUTION NO. 89-013
RESOLUTION APPROVING REDEVELOPMENT PLAN
FOR REDEVELOPMENT PROJECT AREA NO. 2
RAMSEY COUNTY AND THE REDEVELOPMENT PROJECT
TO BE UNDERTAKEN PURSUANT THERETO AND
TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 2 RAMSEY
COUNTY, AND MAKING FINDINGS WITH RESPECT
THERETO
BE IT RESOLVED by the City Council of the City
of St . Anthony, Minnesota as follows :
1 . The Housing and Redevelopment Authority in
and for the City of St . Anthony (the HRA) has approved a
redevelopment plan, as defined in Minnesota Statutes, Section
469 . 002 , subdivision 16 , designated as Redevelopment Plan
for Redevelopment Project Area No. 2 Ramsey County ( the
Redevelopment Plan) , and a redevelopment project, as defined
in Minnesota Statutes, Section 469 .002 , subdivision 14 , to
• be undertaken pursuant thereto, designated as Redevelopment
Project No. 2Ramsey County ( the Redevelopment Project) ,
and in order to finance the public redevelopment costs to
be incurred by the HRA in connection with the Redevelopment
Plan and Redevelopment Project, the HRA has approved a tax
increment financing plan, pursuant to Minnesota Statutes,
Section 469 . 175 , designated as Tax Increment Financing Plan
for Tax Increment Financing District No. 2 Ramsey County
( the Financing Plan) which establishes a tax increment financing
district, as defined in Minnesota Statutes, Section 469 .174 ,
subdivision 9 , designated as Tax Increment Financing District
No. 2 Ramsey County ( the District) . The HRA has requested
that this Council approve the Redevelopment Plan, Redevelopment
Project and Financing Plan following a public hearing thereon.
The HRA has approved a Redevelopment Agreement for the Evergreen
Townhomes .Project ( the Redevelopment Agreement ) between the
HRA and Evergreen Development Corporation, a Minnesota
corporation ( the Developer) for the development of the land
included in the Redevelopment Plan area and district, which
Redevelopment Agreement provides recourse to the HRA if the
townhouse project required to be constructed by the Developer
is not completed. The HRA has furnished to this Council
a copy of the Redevelopment Plan and Financing Plan and the
written opinion of the City Planning Commission as to the
Redevelopment Plan, the Redevelopment Project and the Financing
Plan, and on August 23 , 1988, held a public hearing on the
same after notice of the public hearing was published in
the official newspaper of the City, not less than 10 days
.prior to the date of the hearing. All persons desiring to
be heard were heard.
2 . The Redevelopment Plan, Redevelopment Project,
Financing Plan and establishment of the District are hereby
approved.
3 . This Council finds that the District is a soils
condition district within the scope of Minnesota Statutes,
Section 469 . 174 , subdivision 19 , for the following reasons:
( i ) less than 70% of the parcels in the District are occupied
by buildings, streets, utilities or other improvements, ( ii)
due to unusual terrain or soil deficiencies requiring substantial
filling, grading or other physical preparation for use at
least 80% of the total acreage of land in the District has
a fair market value upon inclusion in the District, which
when added to the cost of preparing the land for development,
excluding costs directly relating to roads as defined in
Section 160 .01 and local improvements as described in Section
429 .021, subdivision 1 , clauses 1 to 7 , 11 and 12 and 430 .01,
exceeds its anticipated fair market value after completion
of the preparation; and ( iii ) upon the execution and delivery
by the HRA and the Developer of the Redevelopment Agreement,
the HRA will have concluded an agreement for the development •
of at least 50% of the acreage in the District having the
unusual soil or terrain deficiencies, which agreement provides
recourse to the HRA should the development not be completed.
The reasons and supporting facts for this determination are
contained in the Redevelopment Plan and Financing Plan which
reasons and supporting facts are incorporated herein by
reference .
4 . Based upon the reasons and supporting facts
set forth in the Redevelopment Plan and Financing Plan, pursuant
to Minnesota Statutes, Section 469 . 028 , it is hereby found
that :
(A) The land located within the
Project area would not be made available
for redevelopment without financial aid
sought;
(B) The Redevelopment Plan for
the area within the City included therein
will afford maximum opportunity, consistent
with the sound needs of the City as a
whole, for the redevelopment of such
areas by private enterprise; and
(C) The Redevelopment Plan conforms
to the general plan for the development
of the City as a whole.
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a5 . Based upon the reasons and supporting facts
set forth in the Redevelopment Plan and Financing Plan, pursuant
to Minnesota Statutes, Section 469 . 175, subdivision 3 , it
is hereby found that :
(A) For the reasons stated in Section
3 of this Resolution, the District is
a Soils Condition District as defined
in Minnesota Statutes , Section 469 .174 ,
subdivision 19 .
(B) The proposed development to
be undertaken in accordance with the
Redevelopment Plan in the opinion of
this Council would not occur solely through
private investment within the reasonably
foreseeable future and therefor the use
of tax increment financing is deemed
necessary.
(C ) The Financing Plan conforms
to the general plan for the development
of the City as a whole .
(D) The Financing Plan will afford
• maximum opportunity consistent with the
sound needs of the City as a whole for
the development of the District by private
enterprise .
(E) The City elects the method
of tax increment computation set forth
in Minnesota Statutes, Section 273 . 76 ,
subdivision 3 , clause (a) .
Passed by the Council this day of ,
1989 .
Mayor
Attest:
City . Clerk
• City Manager
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A-.
The motion for the adoption of the foregoing resolution •
was duly seconded by Member and upon vote
being taken thereon, the following voted in favor thereof :
and the following voted against the same :
whereupon said resolution was declared duly passed and adopted,
and was signed by the Mayor, whose signature was attested
by the City Manager.
i
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RESOLUTION 89-014
A RESOLUTION APPROVING THE TRANSFER OF LAND
FROM THE CITY OF ST. ANTHONY TO THE ST. ANTHONY
HOUSING AND REDEVELOPMENT AUTHORITY AND
AUTHORIZING THE MAYOR AND CITY CLERK TO
SIGN A DEED
BE IT RESOLVED, that the City Council of the City of St.
Anthony hereby approves the transfer of land from the
City of St. Anthony to the St. Anthony Housing and
Redevelopment Authority and authorizes the Mayor and City
Clerk to sign the appropriate deed.
• Adopted this day of , 1989.
Mayor
ATTEST:
City Clerk
Reviewed for administration:
Acting City Manager
•
CITY OF ST. ANTHONY
SPECIAL MEETING OF THE HOUSING AND
REDEVELOPMENT AUTHORITY
AGENDA
MAY 30, 1989
CITY COUNCIL CHAMBERS
I. Call to Order.
II. Roll Call.
III. Evergreen Townhouses:
A. Redevelopment Agreement.
B. HRA Resolution .1989-002, re: Approval of
• issuance of Tax Increment Revenue Note,
Series 1989.
C. HRA Resolution 1989-003, re: Approval of
Redevelopment Plan, Tax Increment Financing
Plan, and Redevelopment Agreement with
Evergreen Development Corporation.
D. HRA Resolution 198.9-004, re: Approval of the
conveyance of property to the Evergreen
Development Corporation.
IV. Adjournment.
•
th0,
- a e
DATE : APPROVAL :
MAY 19 1989
TO : HOUSING AND REDEVELOPMENT AUTHORITY MEMBERS
FROM : SUSAN L. VANDERHEYDEN, ACTING CITY MANAGER
2=M : EVERGREEN TOWNHOUSES REDEVELOPMENT AGREEMENT
Enclosed is the Redevelopment Agreement as prepared by Evergreen
Development Corporation and our attorneys Bill Soth and Jerome Gilligan.
Mr. Soth will be present to answer your questions concerning the
Agreement.
:cjk5.23.89
1593g
REDEVELOPMENT AGREEMENT
REDEVELOPMENT PROJECT NO. 2
(.EVERGREEN TOWNHOMES)
HOUSING. AND REDEVELOPMENT AUTHORITY
OF ST. ANTHONY, MINNESOTA
AND
EVERGREEN DEVELOPMENT CORPORATION
•
May 1989
• TABLE OF CONTENTS
Section 1 . 1 Definitions
Section 2 . 1 By HRA
Section 2 . 2 By Redeveloper
Section 3 . 1 Purchase
Section 3 . 2 Use
Section 3 . 3 Declaration of Restrictions
Section 3 .4 Indemnity Agreement
Section 4 . 1 Construction Plans
Section 4 . 2 Construction of Minimum Improvements
Section 4 . 3 Commencement and Completion of
Soil Corrections
• Section 4 . 4 Certificate of Completion
Section 5 . 1 Defense of Claims
Section 5 . 2 Insurance
Section 6 . 1 Issuance of Note
Section 6 .2 Taxes
Section 7 . 1 Mortgage Financing
Section 7 .2 Limitation Upon Encumbrance
of Property
Section 7 . 3 Approval of Mortgage
Section 7 . 4 Copy of Notice of Default
of Mortgagee
Section 7 . 5 Termination of Financing Restrictions
Section 8 ..1 Representations as to Redevelopment
Section 8 .2 Transfer of Ownership
Section 8 . 3 Transfer of Property and Assignment
Section 8 .4 Information as to Ownership of Redeveloper
Section 8 . 5 Termination of Limitations on Transfer
Section 9 . 1 Events of Default
Section 9 . 2 Remedies on Default
Section 9 . 3 No Remedy Exclusive
Section 9 . 4 Waivers
Section 10 . 1 Conflict of Interests ; HRA Repre-
sentatives Not Individually Liable
Section 10 . 2 Equal Employment Opportunity
Section 10 . 3 Restrictions on Use
Section 10 . 4 Titles of Articles and Sections
Section 10 . 5 Notices and Demands
Section 10 . 6 Counterparts
Schedule A Redevelopment Property
Schedule B Minimum Improvements
Schedule C Time Table
Exhibit A Certificate of Completion
Exhibit B Covenants and Restrictions
Exhibit C Form of Indemnity Agreement
REDEVELOPMENT CONTRACT
This Agreement is made as of May _, 1989, by and
between the HOUSING AND REDEVELOPMENT AUTHORITY OF ST. ANTHONY,
MINNESOTA, a public body corporate and politic (the "HRA" ) , and
EVERGREEN DEVELOPMENT CORPORATION, a Minnesota corporation
("Redeveloper" ) .
WITNESSETH:
WHEREAS, the HRA was created pursuant to state law now
codified as Minnesota Statutes , Sections 469 .001 through
469 . 047 (the "Act" ) and was authorized to transact business and
exercise its powers by a resolution of the City Council of the
City of St . Anthony (the "City" ) adopted on July 14, 1981; and
WHEREAS, in furtherance of the objectives of the Act,
the HRA has undertaken a program for the clearance and
redevelopment of blighted, vacant and unused areas of the City
and in this connection is engaged in carrying out a
redevelopment project as defined in Minnesota Statutes, Section
469 . 002, Subdivision 12 , known as Redevelopment Project No. 2
(the "Project" ) in the area in the City east of Fordham Drive,
south of Silver Lane and northwest of the Soo Line Railroad
right-of-way (the "Project Area" ) ; and
WHEREAS, as of the date of this Agreement there has
been prepared and approved by the HRA and the City Council
pursuant to the Act a redevelopment plan for the Project, dated
1989 (the "Redevelopment Plan") ; and
WHEREAS, on May _, 1989 the City Council adopted a
resolution establishing the Project Area as a tax increment
financing district; and
WHEREAS, the major objectives of the Redevelopment
Plan are to: correct unusual soil deficiencies , combine
irregularly-shaped properties to prevent poor planning and
development, assemble underdeveloped land for medium density
redevelopment; provide a redevelopment site of a character that
will encourage development of the area and improve sources of
public revenue; eliminate blighting influences which impede
potential development; and provide maximum opportunity for
redevelopment by private enterprise consistent with the needs
of the City as a whole; and
WHEREAS, in order to achieve the objectives of the
Redevelopment Plan, the HRA intends to provide aid and
assistance to the Project through tax increment financing, as
• described in Minnesota Statutes, Sections 469 . 174 through
469 . 179 to finance a portion of the cost of certain soil
correction in the Project Area; and
WHEREAS, the HRA believes that redevelopment of the
Project Area pursuant to this Agreement is in the best
interests of the City and benefits the health, safety, morals
and welfare of its residents, and complies with the applicable
state and local laws and requirements under which the Project
has been undertaken and is being assisted.
NOW, THEREFORE, in consideration of the foregoing
premises and the mutual obligations set forth in this
Agreement , the parties hereto hereby agree as follows :
ARTICLE 1
Definitions
Section 1 . 1 . Definitions . In this Agreement, unless
a different meaning clearly appears from the context:
"Act" means Minnesota Statutes., Sections 469 .001 through
469 . 047 .
"Agreement" means this Agreement, as the same may be from time
to time modified, amended or supplemented.
"Certificate of Completion" means a certification in the form
attached as Exhibit A, to be provided to Redeveloper, or a
purchaser of part of the Redevelopment Property, pursuant to
this Agreement .
"City" means the City of St . Anthony, Minnesota .
"Construction. Plans" means the plans, specifications, drawings
and related documents for the construction work to be performed
by the Redeveloper on the Redevelopment Property, which (a)
shall be at least as detailed as the plans, specifications,
drawings and related documents which are submitted to the
building inspector of the City and (b) shall include at least
the following : ( 1) site plan; (2) foundation plan; (3)
basement plans; (4) floor plan for each floor; (5) elevations
on all sides; (6) landscape an
(7) grading plan; and (8)
utility plan.
"Event of Default" means as set forth in Section 9 .01 hereof .
"Gross Tax Capacity" means the value of real property as
determined by the assessor for the City in accordance with
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1
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Minnesota Statutes, Section 273 . 13 against which the real
property tax is imposed.
"Indemnity Agreement" means the Indemnity Agreement from
Vernon S. Hoium and Ursula Sheehy to the City in the form set
forth as Exhibit C hereto .
"Minimum Improvements" means the improvements described in
Schedule B attached to this Agreement .
"Mortgage" means any mortgage made by Redeveloper which covers,
in whole or in part, the Redevelopment Property and is approved
by the HRA under Article 8 .
"Mortgagee" means the owner or holder of a Mortgage.
"Net Proceeds" means any proceeds paid by an insurer to
Redeveloper and the HRA under a policy or policies of insurance
required under Article 5 and remaining after deducting all
expenses (including fees and disbursements of counsel) incurred
in the collection of the proceeds .
"Note" means the Tax Increment Revenue Note of the HRA issued
pursuant to the Note Resolution.
"Note Resolution" means Resolution No . of the Board of
Commissioners of the HRA adopted , 1989 , authorizing
the issuance and setting forth the terms of the Note.
"Project" means that portion of the redevelopment project in
the City known and referred to as the Evergreen Townhomes
Redevelopment Project which is to be located on the
Redevelopment Property.
"Project Area" means the area designated for redevelopment by
the HRA pursuant to the Redevelopment Plan and the Act .
"Plans" means Redeveloper ' s plans dated 1988 for
redevelopment of the Redevelopment Property as submitted to the
City and the HRA, with any subsequent amendments approved by
the City and the HRA.
"Redevelopment Plan" means the Redevelopment Plan approved by
the City on , 1989 , as amended.
"Redevelopment Property" means the property described on
Schedule A attached hereto .
"Restrictions" means the easements, covenants, conditions and
restrictions set forth in Exhibit B.
�I
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"Section" means a Section of this Agreement, unless used in
reference to Minnesota Statutes .
"Soil Corrections" means the toil corrections to be made to the
Redevelopment Property as represented in the site plan for the
construction of the Minimum Improvements as presented to the
City Council and performed in accordance with this Agreement .
"State" means the State of Minnesota .
"Tax Increment" means that portion of the real estate taxes
paid with respect to the Redevelopment Property which is
remitted to the HRA as tax increment pursuant to the Tax
Increment Act .
"Tax Increment Act" means Minnesota Statutes , Sections 469 . 174
through 469 . 179 .
"Tax Increment District" means Tax Increment District No. 2
Ramsey County created by. the HRA in connection with the Project .
"Tax Increment Financing Plan" means Tax Increment Financing
Plan for Tax Increment Financing District No. 2 Ramsey County
approved by the HRA and the City Council and
dated 1989 .
Time Table" means the schedule of performance dates for certain
actions by Redeveloper under this Agreement, attached hereto as
Schedule C and made a part hereof .
"Unavoidable Delay" means a failure or delay in a party' s
performance of its obligations under this Agreement, or during
any cure period specified in this Agreement which does not
entail the mere payment of money, not within the party' s
reasonable control , including but not limited to acts of God,
governmental agencies, the other party, strikes, labor disputes
(except disputes which could be resolved by using union labor) ,
fire or other casualty, or lack of materials ; provided that
within 10 days after a party impaired by the delay has
knowledge of the delay it shall give the other party notice of
the delay and the estimated length of the delay, and shall give
the other party notice of the actual length of the delay within
10 days after the cause of -the delay has ceased to exist . The
parties shall pursue with reasonable diligence the avoidance.
and removal of any such delay. Unavoidable Delay shall not
extend performance of any obligation unless the notices
required in this definition are given as herein required.
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ARTICLE 2
Representations and Warranties
Section 2 . 1 . By HRA. HRA makes the following
representations to Redeveloper:
(a) HRA is a housing and redevelopment authority duly
organized and existing under the laws of Minnesota. Under the
provisions of the Act, HRA has the power to enter into this
Agreement and carry out its obligations hereunder.
(b) The Project is a "redevelopment p.roject" within
the meaning of the Act and was created, adopted and approved in
accordance with the terms of the Act .
(c) The Tax Increment District is a "tax increment
district" within the meaning of the Tax Increment . Act and was
created, adopted and approved in accordance with the terms of
the Tax Increment Act .
(d) The Soil Corrections constitute public
redevelopment costs as defined in Minnesota Statutes ,
Section 469 . 033, which are permitted to be paid from Tax
Increment, pursuant to Minnesota Statutes , Section 469 . 176,
subdivision 4b. The HRA proposes to financially assist
Redeveloper by reimbursing all or a portion of the
Redeveloper ' s costs for the Soil Corrections by the issuance to
the Redeveloper of the Note.
(e) HRA makes no - representation or warranty that the
Redevelopment Property soils or other conditions are suitable
for the intended redevelopment after the Soil Corrections are
completed.
Section 2 . 2 . By Redeveloper . Redeveloper represents
and warrants that: -
(a) Redeveloper is a corporation duly organized under
the laws of the State, has power to enter into this Agreement,
and has duly authorized the execution, delivery and performance
of this Agreement .
(b) Redeveloper will, subject to Unavaoidable Delays ,
construct, operate and maintain the Minimum Improvements in
accordance with the terms of this Agreement, the Redevelopment
Plan, the Act, and all local , state and federal laws and
regulations .
(c) It is anticipated that the Minimum Improvements
will be constructed so as to have an Gross Tax Capacity of at
• least $
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(d) Redeveloper has received no notice or
communication from any local, state or federal official that
the activities of Redeveloper or HRA in the Project Area may be
or will be in violation of any environmental law or regulation.
Redeveloper is .aware of no facts the existence of which would
cause it to be in -violation of any local, state or federal
environmental law, regulation or review procedure.
(e) The Soils Corrections are estimated to cost from
$ to $
(f) Redeveloper is ready, willing and able to acquire
the Redevelopment Property.
(g) Subject to Unavoidable Delays, Redeveloper will
complete the Minimum Improvements according to the Time Table.
(h) Neither the execution or delivery of this
Agreement, the consumation of the transactions contemplated
hereby, nor the fulfillment of or compliance with the terms and
conditions of this Agreement is prevented by, limited by,
conflicts with, or results in a breach of, any restriction,
agreement or instrument to which Redeveloper is now a party or
by which it is bound.
ARTICLE 3
Acquisition and Use of Redevelopment Property;
Indemnity Agreement
Section 3 . 1 Purchase . Redeveloper agrees to .purchase
the Redevelopment Property so as to perform its obligations
according to the Time Table and otherwise in accordance with
this Agreement .
Section 3 . 2 Use. Redeveloper ' s use of the
Redevelopment Property shall be subject to all of the
conditions, covenants , restrictions and limitations imposed by
the Redevelopment Plan, this Agreement, the Restrictions and
all applicable laws, ordinances and regulations .
Section 3 . 3 Declaration of Restrictions . Redeveloper
shall prepare, execute, and record on the title to the
Redevelopment Property a Declaration of Covenants and
Restrictions , in form approved by the HRA, which includes the
Restrictions set forth on Exhibit B.
Section 3 .4 Indemnity Agreement . Redeveloper shall
cause the Indemnity Agreement to be executed by Vernon S. Hoium
and Ursula Sheehy, and delivered to the HRA simultaneously with
the execution and delivery of this Agreement by the Redeveloper .
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ARTICLE 4
Construction of Minimum Improvements
Section 4 . 1 Construction Plans . Redeveloper shall
submit Construction Plans to the HRA according to the Time
Table. The Construction Plans shall provide for construction
of the Minimum Improvements in conformity with the
Redevelopment Plan, the Plans , this Agreement, and all
applicable state and local laws and regulations . The HRA shall
approve the Construction Plans in writing if, in the reasonable
discretion of the HRA, the Construction Plans :
(a) substantially conform to the Plans and subsequent
amendments approved by the HRA; conform to the terms and
conditions of this Agreement; (b) conform to the terms and
conditions of the Redevelopment Plan; (c) conform to all
applicable federal, state and local laws , ordinances, rules and
regulations; (d) are adequate to provide for construction of
the Minimum Improvements; (e) provide for the Soil Corrections;
(f) provide for minimum disturbance to neighboring properties
during the Soil Corrections and construction of the Minimum
Improvements; (g) do not provide for expenditures in excess of
the funds available to Redeveloper for the the Soil Corrections
and construction of the Minimum Improvements; and (h) no Event
of Default has occurred.
No approval by the HRA shall relieve Redeveloper of
the obligation to comply with the terms of this Agreement, the
terms of the Redevelopment Plan, applicable federal , state and
local laws, ordinances, rules and regulations, or to properly
demolish the existing buildings or construct the Minimum
Improvements . No approval by the HRA shall constitute a waiver
of an Event of Default . Any disapproval of the Construction
Plans shall set forth the reasons therefor, and shall be made
within 30 days after the date of their receipt by the HRA. If
HRA .rejects the Construction Plans , in whole or in part,
Redeveloper shall submit new or corrected Construction Plans
within 30 days after written notification to Redeveloper of the
rejection. The provisions of this Section relating to
approval , rejection and resubmission of corrected Construction
Plans shall continue to apply until the Construction Plans have
been approved by HRA:
Section 4 . 2 Construction of Minimum Improvements .
(a) Subject to Unavoidable Delays, Redeveloper will
construct the Minimum Improvements without encroachment onto
any other property all in accordance with the Plans , the
Construction Plans and the Time Table.
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(b) All work with respect to the Minimum Improvements
shall be in substantial conformity with the Construction Plans
approved by the HRA. Redeveloper shall promptly begin and
diligently prosecute to completion the redevelopment of the
Redevelopment Property through the construction of the Minimum
Improvements . Redeveloper shall make reports, in such detail
and at such times as may reasonably be requested by the HRA, as
to the actual progress of Redeveloper with respect to
construction of the Minimum Improvements .
(c) Redeveloper shall not interfere with, or
construct any improvements over , any public street or utility
easement without the prior written approval of the City. All
connections to public utility lines and facilities shall be
subject to approval of the City and any private utility company
involved. Except for public improvements which are assessable
by the City or other governmental body against other benefited
properties , all street and utility installations , relocations ,
alterations and restorations shall be at Redeveloper ' s expense
and without expense to the City or the HRA. Redeveloper at its
own expense shall replace any public facilities or utilities
damaged during the construction of the Minimum Improvements .
Section 4 . 3 Commencement and Completion of Soil
Corrections . As soon as reasonably possible after conveyance
to Redeveloper, and subject to Unavoidable Delays , Redeveloper
shall undertake the Soil Corrections . Subject to Unavoidable
Delays, Redeveloper shall complete or cause to be completed the
Soil Corrections in accordance with the Time Table. Upon
completion of the Soil Corrections Redeveloper will provide the
HRA with a statement in form and detail reasonably satisfactory
to the HRA showing the costs of such work . Upon delivery of
the statement referred to in the preceeding sentence to the
HRA, the -HRA will reimburse the Redeveloper for all or a
portion of the Redeveloper ' s costs of the Soil Corrections by
the issuance to the Redeveloper of the Note as provided in
Section 6 . 1 hereof . The Redeveloper acknowledges that in ,
undertaking the Soil Corrections it is in- no manner acting as
an agent of the HRA.
Section 4 . 4 Certificate of Completion.
(a) Promptly after completion of any townhouse unit
included in the Minimum Improvements in accordance with this
Agreement , Redeveloper will provide the HRA with a certificate
of substantial completion from Redeveloper ' s architect, and the
HRA will furnish Redeveloper with an appropriate Certificate of
Completion as conclusive evidence of satisfaction and
termination of the agreements and covenants of this .Agreement
(except as to the Restrictions which expressly survive the
filing of the Certificate of Completion) with respect to the
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obligations of Redeveloper to construct such unit . Any
Certificate of Completion furnished- by the HRA shall not
constitute evidence of compliance with or satisfaction of any
obligation of Redeveloper to any Mortgagee.
(b) If the HRA shall refuse or fail to provide a
Certificate of Completion, the HRA shall., within 15 days after
the Redeveloper provides the architect ' s certificate referenced
in Section 4 . 4(a) , provide Redeveloper with a written statement
specifying in what respects Redeveloper has failed to complete
the specific unit of the Minimum Improvements in accordance
with this Agreement , or is otherwise in default, and what
measures or acts will be necessary, in the opinion of the HRA,
for Redeveloper to obtain the Certificate of Completion.
- (c) The construction of the Minimum Improvements will
be deemed substantially completed when the City has issued a
certificate of occupancy for the all of the Minimum
Improvements and has made a finding that the improvements
conform to the Construction Plans .
ARTICLE 5
Defense of Claims; Insurance
Section 5 . 1 Defense of Claims . Redeveloper shall
indemnify and hold harmless the HRA and the City and their
respective officers , employees and agents for any loss , damages
and expenses (including attorneys ' fees) in connection with any
claims or proceedings arising from damages or injuries received
or sustained by any person or property by reason of any actions
or omissions of Redeveloper or its contractors , agents ,
officers or employees under this Agreement, other than claims
or proceedings arising from any negligent or unlawful acts or
omissions of the HRA, the City or their contractors , agents,
officers or employees, and from any loss, damages and expenses
( including attorney' s fees) that may be occasioned by any
claims or proceeding brought by the initial owner of the Note
or any person to whom the Note is transferred by such initial
owner , pertaining to the issuance, sale and delivery of the
Note and performance by the HRA of its obligations under the
Mote Resolution (other than any claim or proceeding relating to
the establishment of the Redevelopment Plan, Project or Tax
Increment District by the HRA or authority of HRA to execute
this Agreement or the Note or to perform thereunder) . Promptly
after receipt by the HRA or City of notice of the commencement
of any action in respect of which indemnity may be sought
against the Redeveloper under this Section 5 . 1 , such person
will notify the Redeveloper in writing of the commencement
thereof, and, subject to the provisions hereinafter stated, the
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Redeveloper shall assume the defense of such action ( including
the employment of counsel , who shall be counsel satisfactory to
the HRA or City, as the case may be, and the payment of
expenses) insofar as such action shall relate to any alleged
liability in respect of which indemnity may be sought against
the Redeveloper . The HRA or the City shall have the right to
employ separate counsel in any such action and to participate
in the defense thereof , but the fees and expenses of such
counsel shall not be at the expense of the Redeveloper unless
the employment of such counsel has been specifically authorized
by the Redeveloper . The Redeveloper shall not be liable to
indemnify any person for any settlement of any such action
effected without its consent . The omission to notify the
Redeveloper as herein provided will not relieve it from any
liability which it may have to any indemnified party pursuant
hereto, otherwise than under this section.
Section 5 . 2 Insurance.
(a) Redeveloper will provide the following insurance
at the time of conveyance of Redevelopment Property to
Redeveloper and will maintain such insurance at all times
during the process of constructing the Minimum Improvements ,
and thereafter to the extent the Minimum Improvements are .owned
by Redeveloper, and at the request of the HRA. will furnish the
HRA with copies of and proof of payment of premiums on the
following insurance :
( i) Builder ' s risk insurance, written on the
so-called "Builder ' s Risk -- Completed Value Basis , "
in an amount equal to 100% of the replacement costs of
the Minimum Improvements at the date of completion,
naming the HRA as an additional insured, with coverage
on the so-called "all risk, " nonreporting form of
policy;
(ii) Comprehensive general public liability
insurance, including personal injury liability (with
employee exclusion deleted) and automobile insurance,
including owned, non-owned and hired automobiles,
against liability for injuries to persons and/or
property with respect to the Redevelopment Property,
in the minimum amount for each occurrence and for each
year of $1 ,000, 000 , endorsed to show the HRA and the
City as additional insureds; and
(iii) Worker ' s compensation insurance in compliance
with all statutory requirements .
•
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The pclicies of insurance required under clauses ( i) , ( ii) and
( iv) above shall be in form and content satisfactory to the HRA
and shall be placed with financially sound and reputable
insure=s licensed to transact business in the State of
Minnesota. The policies shall contain an agreement of the
insurer to give not less than 30 days ' advance written notice
to the HRA in the event of cancellation of such policy or
change affecting the coverage .
(b) The provisions herein with respect to insurance
of the Minimum Improvements shall terminate with respect to any
unit included in the Minimum Improvements at such time as the
Redeveloper has received a Certificate of Completion under
Section 4 . 4 of the Agreement with respect to such unit and such
unit is no longer owned by the Redeveloper .
ARTICLE 6
Issuance of Note and
Payment of Taxes
Section 6 . 1 Issuance of Note. Upon completion of the
Soil Corrections and delivery to the HRA of the statement
required under Section 4 . 3 hereof as to the costs of the Soil
Corrections, the HRA will issue and deliver the Note to the
Redeveloper . The Note shall be issued in a principal amount
equal to the lesser of ( i) $250 , 000 or ( ii) the costs of the
Soil Correction as set forth in the statement delivered to the
HRA under Section 4 . 3(a) hereof . The Note shall be dated as of
the date of receipt by the HRA of the statement to be delivered
to the HRA pursuant to Section 4 .3 hereof, and interest shall
be payable on the Note from the date thereof at the rate of 1.2%
per annum at the times and in the manner provided in the Note.
The Redeveloper acknowledges that it has reviewed the form of
the Note and Note Resolution and approves the terms thereof .
The Redeveloper further acknowledges that the Note is a limited
obligation of the HRA, and shall not be payable from any funds
of the HRA other than the tax increment revenue derived from
the Tax Increment District specifically pledged to the payment
thereof under the Note Resolution.
Section 6 . 2 Taxes . Redeveloper shall pay when due
all real estate taxes and installments of special assessments
payable on the Redevelopment Property subsequent to the date
title to the Redevelopment Property is conveyed to Redeveloper
and prior to the date of sale of the Minimum Improvements, or
portions thereof, to purchasers .
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• ARTICLE 7
Mortgage Financing
Section 7 . 1 Mortgage Financing . Mortgage financing
for construction of the Minimum Improvements shall be in
accordance with this Article. The HRA agrees to cooperate with '
Redeveloper in Redeveloper ' s efforts to obtain such mortgage
financing .
Section 7 . 2 Limitation Upon Encumbrance of Property.
Prior to the completion of the Minimum Improvements , as
certified by the HRA, neither Redeveloper nor any successor in
interest to the Redevelopment Property or any part thereof
shall engage in any financing or any other transaction creating
any Mortgage or other encumbrance or lien upon the
Redevelopment Property, whether by express agreement or
operation of law, -or suffer any encumbrance or lien to be made
on or attach to the Redevelopment Property, except with the
prior written approval of the HRA, which approval will not be
unreasonably withheld if the encumbrance is to secure a loan
for the purposes of obtaining funds only to the extent
necessary for acquiring the Redevelopment Property and
development of the Minimum Improvements . The HRA shall not
approve any Mortgage which does not conform to the requirements
of this Agreement .
Section 7 . 3 Approval of Mortgage. The HRA shall
approve a Mortgage if the HRA first (a) receives a copy of all
mortgage documents ; (b) determines , in its reasonable
discretion, that the Mortgagee is a responsible lender capable
of making the mortgage loan; (c) determines, in its reasonable
discretion, that the mortgage loan, together with other funds
available to Redeveloper, will be sufficient to construct the
Minimum Improvements; (d) determines that no Event of Default
has occurred; and (e) determines, in its reasonable discretion,
that the terms of the Mortgage conform to the terms of this
Agreement .
Section 7 .4 Copy of Notice of Default to Mortgagee.
Whenever the HRA shall deliver any notice or demand to
Redeveloper with respect to any breach or default by
Redeveloper in its obligations or covenants under this
Agreement , the HRA shall at the same time forward a copy of
such notice or demand to the Mortgagee at the last address of
such Mortgagee shown in the records of the HRA.
Section 7 . 5 Termination of Financing Restrictions.
All restrictions on financing contained in this Article 7 shall
terminate with respect to the Minimum Improvements or any
individual townhouse unit included therein, at such time as a
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Certificate of Completion has been .issued by the HRA under
Section 4 .4 of this Agreement with respect to all of the
Minimum Improvements or the particular unit in question.
ARTICLE 8
Prohibitions Against Assignment and Transfer
Section 8 . 1 Representation as to Redevelopment . The
Redeveloper represents and agrees that its purchase of the
Redevelopment Property, and its other undertakings pursuant to
the Agreement are, and will be used, for the purpose of
redevelopment of the Redevelopment Property. The Redeveloper
further recognizes that a transfer of a controlling interest in
the Redeveloper or any other act or transaction resulting in a
significant change in the ownership are of particular concern
to the City and the HRA.
Section 8 . 2 Transfer of Ownership. Prior to
completion of the Minimum Improvements as certified by the HRA,
except in the case of the death or incompetency of the
Guarantor or the shareholders of Redeveloper, (a) there shall
be no transfer of any interest of a shareholder in Redeveloper,
(b) nor shall any officer or shareholder suffer any such
transfer to be made, (c) nor shall there be or be suffered to
be by Redeveloper, any other similarly significant change in
the ownership of Redeveloper or in the relative distribution
thereof, or with respect to the identity of the parties in
control of Redeveloper or the degree thereof , by any other
method or means, (d) nor shall Guarantor cease to be a
controlling shareholder of Redeveloper.
Section 8 .3 Transfer of Property and Assignment .
Except for reservations or purchase agreements for individual
townhouse units, Redeveloper has not made and will not make, or
suffer to be made, any total or partial sale, assignment,
conveyance, lease, or other transfer, with respect to this
Agreement or the Redevelopment Property or any part thereof or
any interest therein, or any contract or agreement to do any of
the same, without the prior written approval of the HRA, which
approval shall not be unreasonably withheld if Redeveloper has
completed the Minimum Improvements . The HRA shall be entitled
to require as conditions to any such approval that : ( i) the
proposed transferee have the qualifications and financial
responsibility, as reasonably determined by the HRA, necessary
and adequate to fulfill the obligations undertaken in this
Agreement by Redeveloper; (ii) the proposed transferee, by
recordable instrument satisfactory to the HRA shall , for itself
and its successors and assigns , assume all of the obligations
of Redeveloper under this Agreement . No transfer of, or change
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• with respect to, ownership in the Redevelopment Property or any
part thereof , or any interest therein, however consummated or
occurring and whether voluntary or involuntary, shall operate,
legally or practically, to deprive or limit the HRA of or with
respect to any rights or remedies or controls provided in or
resulting from this Agreement with respect to the Redevelopment
Property and the construction of the Minimum Improvements that
the HRA would have had, had there been no such transfer or
change. There shall be submitted to the HRA for review all
legal documents relating to the transfer .
In the absence of specific written agreement by the
HRA to the contrary, no such transfer or approval by the HRA
thereof shall be deemed to relieve Redeveloper, or any other
party bound in any way by this Agreement or otherwise with
respect to the construction of the Minimum Improvements, from
any of its obligations with respect thereto .
Section 8 .4 Information as to Ownership of
Redeveloper . Redeveloper will promptly notify the HRA of any
changes in the ownership of Redeveloper, or with respect to the
identity of the parties in control of Redeveloper or the degree
thereof, of which it has been notified or otherwise had
knowledge. Redeveloper shall , at such time or times as the HRA
may request, furnish the HRA with a complete statement,
subscribed and sworn to by an officer of the Redeveloper,
setting forth all of the owners of Redeveloper and the extent
of their respective holdings .
Section 8 . 5 Termination of Limitations on Transfer.
All provisions contained in this Article 8 with respect to
limitations on the ability of the Redeveloper to transfer the
. Redevelopment Property or Minimum Improvements , or any portion
thereof shall terminate with respect to the Minimum
Improvements or individual townhouse units at such time as a
Certificate of Completion has been issued by the HRA under
Section 4 .4 of this Agreement with respect to all of the
Minimum Improvement or the particular unit in question. All
provisions contained in this Article 8 with respect to
limitations on the Redeveloper making changes in its ownership
structure -shall terminate at such time as a Certificate of
Completion has been issued pursuant to Section 4 .4 with respect
to all Minimum Improvements .
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• ARTICLE 9
Events of Default
Section -9 . 1 Events of Default . The following shall
be "Events of Default" under this Agreement .and the term "Event
of Default" shall mean, whenever it is used in this Agreement
(unless the context otherwise provides) , any one or more of the
following events which occurs prior to the issuance of the
Certificate of Completion by the HRA under Section 4 .4 of this
Agreement with respect to all of the Minimum Improvements and
continues for more than 30 days after notice by the HRA to
Redeveloper of such default (and the term "default" shall mean
any event which would with the passage of time or giving of
notice, or both, be an "Event of Default" hereunder) :
(a) Failure of Redeveloper to construct or
reconstruct the Minimum Improvements as required hereunder .
(b) Failure of Redeveloper to furnish the
Construction Plans as required hereunder .
(c) Failure of Redeveloper to pay real estate taxes
as required hereunder .
(d) Failure of Redeveloper to observe and perform any
other covenant, condition, obligation or agreement on its part
to be observed or performed hereunder.
(e) If Redeveloper shall admit in writing its
inability to pay its debts generally as they become due, or
shall file a petition in bankruptcy, or shall make an
assignment for the benefit of its creditors , or shall consent
to the appointment of a receiver of itself or of the whole or
any substantial part of the Redevelopment Property.
(f) If Redeveloper shall file a petition or answer
seeking reorganization or arrangement under the federal
bankruptcy laws .
(g) If Redeveloper, on a petition in bankruptcy filed
against it, be adjudicated a bankrupt, or a court of competent
jurisdiction shall enter an order or decree appointing, without
the consent of the Redeveloper, a receiver of all or
substantially all of its property, or approve a petition
seeking reorganization or arrangement under the federal
bankruptcy laws, and such adjudication, order or decree shall
not be vacated or set aside or stayed within 60 days from the
date of entry thereof .
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• (h) If Redeveloper is in default under any Mortgage
and fails to cure any such default within the time period
provided for in the Mortgage.
Section 9 . 2 Remedies on Default. Whenever any Event
of Default referred to in Section 9 . 1 occurs, the HRA may take
any one or more of the following actions :
(a) Suspend its performance under this Agreement
until it receives assurances from Redeveloper, deemed adequate
by the HRA, that Redeveloper will cure its default and continue
its performance under this Agreement .
(b) Terminate all rights of Redeveloper under this
Agreement .
(c) Withhold the Certificate of Completion.
(d) withhold the issuance of the Note.
(e) Take whatever action at law or in equity may
appear necessary or desirable to the HRA to enforce performance
and observance of any obligation, agreement, or covenant of the
Redeveloper under this Agreement .
Section 9 . 3 . No Remedy Exclusive. No remedy herein
conferred upon or reserved to the HRA is intended to be
exclusive of any other available remedy or remedies, but each
and every such remedy shall be cumulative and shall be in
addition to every other remedy given under this Agreement or
now or hereafter existing at law or in equity or by statute.
No delay or omission to exercise any right or power accruing
upon any default shall impair any such right or power or shall
be construed to be a waiver thereof, but any such right and
power may be exercised from time to time and as often as may be
deemed expedient . In order to entitle the HRA or Redeveloper
to exercise any remedy reserved to it, it shall not be
necessary to give notice, other than such notice as may be
required under this Agreement .
Section 9 . 4 . Waivers . All waivers by the HRA, shall
be in writ.-g . If any provision of this Agreement is breached
by either party and thereafter waived by the other party, such
waiver shall be limited to the particular breach so waived and
shall not be deemed to waive any other concurrent, previous or
subsequent breach hereunder .
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• ARTICLE 10
Additional Provisions
Section 10 . 1 Conflict of Interests; HRA
Representatives Not Individually Liable. _ No member, official,
employee, or consultant or employees of the consultants of the
HRA shall have any personal interest, direct or indirect, in
this Agreement, nor shall any such member, official, consultant
or the consultant ' s employees or employee participate in any
decision relating to this Agreement which affects his or her
personal interests or the interests of any corporation,
partnership, or association in which he or she is directly or
indirectly interested. No member, official, consultant or the
consultant ' s employees , or employee of the HRA shall be
personally liable to Redeveloper, or any successor in interest,
in the event of any default or breach by the HRA or for any
amount which may become due to Redeveloper or successor or on
any obligations under the terms of this Agreement .
Section 10 . 2 Equal Employment Opportunity.
Redeveloper, for -itself and its successors and assigns, agrees
that during the construction of the Minimum Improvements it
will comply with any applicable affirmative action and
non-discrimination laws or regulations .
Section 10 .3 Restrictions on Use. Redeveloper agrees
for itself, and its successors and assigns, and every successor
in interest to the Redevelopment Property, or any part thereof,
that Redeveloper, and such successors and assigns, shall devote
the Redevelopment Property to, and only to and in accordance
with, the uses specified in the Redevelopment Plan and this
Agreement , and shall not discriminate upon the basis of race,
color, creed, sex or national origin in the sale, lease, or
rental or in the use or occupancy of the Redevelopment Property
or any improvements erected or to be erected thereon, or any
part thereof .
Section 10 .4 Titles of Articles and Sections . Any
titles of the several parts, Articles, and Sections of this
Agreement are inserted for convenience of reference only and
shall be disregarded in construing or interpreting any of its
provisions .
Section 10 . 5 Notices and Demands . Except as
otherwise expressly provided in this Agreement, a notice,
demand, or other communication under this Agreement by either
party to the other shall be sufficiently given or delivered if
it is dispatched . by registered or certified mail, postage
prepaid, return receipt requested, or delivered personally; and
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(a) in the case of Redeveloper, addressed to or
delivered personally to Redeveloper at 1920 Dain Tower,
Minneapolis, Minnesota 55402 , Attention: Vernon S. Hoium.
(b) in the case of the HRA, addressed or delivered
personally to the HRH' s Executive Director, 3301 Silver Lake
Road, St . Anthony, Minnesota 55418, or at such other address
with respect to either such party as that party may, from time
to time, designate in writing and forward to the other as
provided in this Section.
Section 10 . 6 . Counterparts . This Agreement is
executed in any number of counterparts, each of which shall
constitute one and the same instrument.
IN WITNESS WHEREOF, the parties have caused this
Agreement to be duly executed as of the date first above
written.
HOUSING AND REDEVELOPMENT AUTHORITY
OF ST. ANTHONY, MINNESOTA
By
Its Chairman
By
Its Secretary
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• STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me
this day of 1989 , by
Chairman and , Secretary of the Housing
and Redevelopment Authority of St . Anthony, Minnesota .
Notary Public
EVERGREEN DEVELOPMENT CORPORATION
By
Vernon S. Hoium
Its President
STATE OF MINNESOTA )
SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me
this day of , 1989 , by Vernon S. Hoium, the
President of Evergreen Development Corporation, a Minnesota
corporation, on behalf of the corporation.
Notary Public
DRAFTED' BY:
Dorsey & Whitney (WRS)
2200 First Bank Place East
Minneapolis , Minnesota 55402
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1594g
SCHEDULE A
REDEVELOPMENT PROPERTY
• SCHEDULE B
MINIMUM IMPROVEMENTS
•
• SCHEDULE C
The following events shall take place, subject to Unavoidable
Delays (as defined in this Agreement) by the date specified.
TIME TABLE
Redevelopment
Contract
Section Task Date
7 . 3 HRA approval or disapproval of
Mortgage .
5 . 2 Redeveloper provides proof of
insurance.
3 . 1 Conveyance to Redeveloper .
a'. Restrictions
4 . 1 Construction Plans submitted to HRA
and City.
a . HRA disapproval (30 days)
• b. Redeveloper re-submits Plans
(30 days)
4 . 2 Construction begins .
4 . 3 Soil Corrections Completed.
4 . 3 Construction of Minimum Improvements
completed.
4 . 4 HRA issues or refuses to issue
Certificate of Completion.
• EXHIBIT A
CERTIFICATE OF COMPLETION
WHEREAS, Evergreen Development Corporation, a
Minnesota corporation ("Owner" ) is the owner of the property in
the County of Hennepin and State of Minnesota described on
Exhibit 1 attached hereto and made a part hereof ("Property" ) ;
and
WHEREAS, the Property is subject to the provisions of
a certain Redevelopment Agreement (the "Agreement") dated
1989 by and between Owner and the Housing and
Redevelopment Authority of St . Anthony, Minnesota (the "HRA" ) ;
and
WHEREAS, Owner has fully and duly performed all of the
covenants and conditions of Owner under the Agreement with
respect to the Property;
NOW, THEREFORE, it is hereby certified that all
requirements of Owner under the Agreement with respect to the
Property have been completed and duly and fully performed, and
• this instrument is to be conclusive evidence of the
satisfactory termination of the covenants and conditions of the
Agreement as they relate to the Property.
Dated this day of 198_.
HOUSING AND REDEVELOPMENT AUTHORITY
OF ST. ANTHONY, MINNESOTA
By
Its Chairman
By
Its Secretary
• STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me
this day of 198_11 by
Chairman and J, Secretary of the Housing
and Redevelopment Authority of St . Anthony, Minnesota .
Notary Public
This Instrument Was Drafted By:
DORSEY & WHITNEY (WRS)
2200 First Bank Place East
Minneapolis , Minnesota 55402
•
• EXHIBIT B
COVENANTS AND RESTRICTIONS
1 . The property described in the Agreement ( "Property" ) shall
be used only for the construction, use and occupancy of the
Minimum Improvements defined in the Agreement .
2 . All buildings on the Property shall be located on the
Property as specified in the Plan. The exterior surfaces
of any building on the Property shall be fi.nished with only
those materials as permitted under the Plan.
3 . All drainage shall be provided according to the Plan.
4 . All garages , storage buildings or maintenance buildings
( "Accessory Buildings" ) shall be attached to the principal
structure within a closed passageway between the Accessory
Building and the principal structure. All Accessory
Buildings shall be made of the same material as the
principal structure .
5 . Any recreational areas specified in the Plan shall be
• maintained in a good, safe and clean condition.
6 . All parking lot areas , pedestrian walkways , and buildings
shall be illuminated only as provided in the Plan.
7 . Parking lots and open areas shall be landscaped in
accordance with the Plan, and such landscaping and any
screening required under the Plan shall be maintained in a
good, safe and attractive condition .
8 . Except for temporary for sale signs permitted by City
ordinances , no signs shall be allowed on the Property
except those permitted under the Plan.
9 . Sidewalks shall be constructed only in accordance with the
Plan .
10 . Parking lots shall be built only in accordance with the
Plan and shall be maintained with a dust-free asphalt
surface and include raised concrete islands at the ends of
each row of parking to define the circulation and protect
the parking area . The islands shall be at least 6 inches
high and constructed of concrete.
11, Benches and bus shelters, if any, specified in the Plan
shall be maintained in a good, safe, clean and attractive
- condition.
• 12 . All buildings, parking areas , open areas, landscaped areas,
and other improvements (collectively, the " Improvements" )
on the Property shall be maintained in a good, safe, clean
and attractive condition. If any of the Improvements are
damaged or - destroyed by fire, storm or by any other means,
they shall be restored or rebuilt in accordance with .the
Plan to a condition 'and value equal to or greater than
their condition and value on the date of the destruction or
damage.
13 . The covenants and restrictions herein contained shall run
with the title to the Property and shall be binding upon
all present and future owners and occupants of the
Property provided, however, that the covenants and
restrictions herein contained shall inure only to the
benefit of the Housing and Redevelopment Authority of St .
Anthony, Minnesota ("HRA" ) , and may be released or waived
in whole or in part at any time, and from time to time, by
the sole act of the HRA, and variances may be granted to
the covenants and restrictions herein contained by the sole
act of the HRA. These covenants and restrictions shall be
enforceable only by the HRA, and only the HRA shall have
the right to sue for and obtain an injunction, prohibitive
or mandatory, to prevent the breach of the covenants and
restrictions herein contained, or to enforce the
• performance or observance thereof .
14 . The covenants and restrictions herein contained shall
remain in effect until and thereafter shall
be null and void.
EXHIBIT C
• INDEMNITY AGREEMENT
THIS INDEMNITY AGREEMENT, made and entered into as of
the day of May, 1989 , between VERNON S . HOIUM, whose
address is
and Ursula Sheehy, whose address is
(collectively, the " Indemnitors") and the HOUSING
AND REDEVELOPMENT AUTHORITY OF ST. ANTYONY, MINNESOTA, a public
body corporate and politic, whose address is 3301 Silver Lake
Road, St . Anthony, Minnesota 55418 , Attention: Executive
Director (the "HRA" ) .
WITNESSETH THAT:
WHEREAS, the HRA and Evergreen Development
Corporation, a Minnesota corporation (the "Redeveloper" ) , -have
entered into a Redevelopment Agreement, dated as of May _,
1989 (the "Redevelopment Agreement" ) , pursuant to which the
Redeveloper has agreed to construct certain Minimum
Improvements, as defined in the Redevelopment Agreement, and
the HRA has agreed to issue its Note, as defined in the
Redevelopment Agreement, to the Redeveloper upon completion of
the Soil Corrections, as defined in the Redevelopment Agreement;
WHEREAS, in order to induce the HRA to issue the Note
and to enter into the Redevelopment Agreement , Redeveloper has
agreed to obtain, and Indemnitors have agreed to give, this
Indemnity Agreement ; and
WHEREAS, the Indemnitors own 100% of the outstanding
stock of the Corporation and the HRA has refused to issue the
Note and enter into the Redevelopment Agreement unless this
Indemnity Agreement is executed by the Indemnitors and
delivered to the HRA; and
WHEREAS, the Indemnitors. finds it advantageous and
desirable to comply with the condition precedent that the
Indemnitors execute and deliver the Indemnity Agreement .
NOW, THEREFORE, in consideration of the premises, of
the HRA issuing the Note and entering into the Redevelopment
Agreement and of other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged by
Indemnitors, the Indemnitors hereby, jointly and severally,
covenant and agree with Lender as follows :
1. Indemnitors, for the HRA, their heirs , executors,
administrators, personal representatives and assigns , hereby
agree to indemnify and hold harmless the HRA and the City of
• St . Anthony, Minnesota (the "City" ) and their respective
officers , employees and agents for any loss , damages , and
expenses ( including attorneys ' fees) in connection with any
claim or proceedings arising from damages, or injuries received
or sustained by any person or property by reason of any actions
or omissions of Redeveloper or its contractors, agents,
officers or employees under the Redevelopment Agreement, other
than claims or proceedings arising from any negligent or
unlawful acts or omissions of the HRA, the City or their
contractors, agents, officers or employees , and from any loss,
damages and expenses (including attorneys ' fees) that may be
occasioned by any claims or proceedings brought by the initial
owner of the Note or by any person to whom the Note is
transferred by such initial owner, pertaining to the issuance,
sale and delivery of the Note and performance by the HRA of its
obligations under the Note Resolution, as defined in the
Redevelopment Agreement (other than any claims or proceedings
relating to the establishment of the Redevelopment Plan,
Project or Tax Increment District by the HRA or authority of
the HRA to execute the Redevelopment Agreement or the Note or
to perform thereunder) . Promptly after receipt by the HRA or
. City of notice of the commencement of any action in respect of
which indemnity may be sought against the Indemnitors under
this Section 1, such person will notify -the Indemnitors in
writing of the commencement thereof, and, subject to the
• provisions hereinafter stated, the Indemnitors shall assume the
defense of such action ( including the employment of counsel,
who shall be counsel satisfactory to the HRA or City, as the
case may be, and the payment of expenses) insofar as such
action shall relate to any alleged liability in respect of
which indemnity may be sought against the Indemnitors . The HRA
or the City shall have the right to employ separate counsel in
any such action and to participate in the defense thereof, but
the fees and expenses of such counsel shall not be at the
expense of the Indemnitors unless the employment of such
counsel has been specifically authorized by the Indemnitors .
The Indemnitors shall not be liable to indemnify any person for
any settlement of any such action effected without its
consent . The omission to notify the Indemnitors as herein
provided will not relieve it from any .liability which it may
have to any indemnified party pursuant hereto, otherwise than
under this section.
2 . Indemnitors hereby waive any and all legal
requirements that HRA, or its successors or assigns, must
institute any action or proceeding at law or in equity or
exhaust their rights, remedies and recourses against the
Redeveloper or anyone else with respect to the Redevelopment
Agreement, as a condition precedent to bringing an action
against Indemnitors upon this Indemnity Agreement . Indemnitors
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agree that HRA may simultaneously maintain an action upon this
Indemnity Agreement and an action or proceeding upon the
Redevelopment Agreement . All remedies afforded to HRA and its
successors or assigns, by reason of this Indemnity Agreement,
are separate and cumulative remedies , and no one of such
remedies, whether exercised by HRA or its successors or
assigns, or not, shall be deemed an exclusion of any of the
other remedies available to HRA or its successors or assigns,
at law, in equity, by statute, under the Redevelopment
Agreement, hereunder or otherwise, and shall in no way limit or
prejudice any such other remedies which HRA or its successors
or assigns may have. Indemnitors: further waive any requirement
that HRA demand or seek indemnity by the Redeveloper under the
Redevelopment Agreement as a condition precedent to bringing
any action against Indemnitors upon this Indemnity Agreement .
3. Any notice, demand or request by HRA, or its
successors or assigns, to Indemnitors shall be in writing and
shall be deemed to have been duly given or made if mailed by
registered or certified mail , return receipt requested, to
Indemnitors at their addresses set forth in the caption hereof,
or at such other address as Indemnitors may notify HRA of, in
writing, by registered or certified mail, return receipt
requested, at the address for each set. forth in the caption
hereof, or at such other address of which each .such party shall
• have so notified Indemnitors . Notice so mailed shall be deemed
given and made upon deposit in the United States mail .
4 . This Indemnity Agreement, for all purposes, shall
be interpreted and construed in accordance with the laws of the
State of Minnesota, in which state it is to be performed. The
unenforceability or invalidity of any provision or provisions
of this Indemnity Agreement as to any persons or circumstance
shall not render that provision nor any other provision or
provisions herein contained unenforceable or invalid as to any
other persons or circumstance, and all provisions hereof, in
all other respects, shall remain valid and enforceable .
5 . This instrument shall inure to the benefit of HRA
and its successors and assigns , and shall bind Indemnitors and
Indemnitors ' heirs, executors , administrators, personal
representatives and assigns . The obligations of each
Indemnitor under this Indemnity Agreement shall be enforceable
in all events against such Indemnitor, his or her successors
and assigns , and each of them, and shall be enforceable, in the
event of the death of 'either Indemnitor, as a claim against his
or her estate or otherwise against -the representatives of his
or her estate, his or her heirs-at-law, ' the devisees and
beneficiaries of his or her total estate and each of them.
•
-3-
• IN WITNESS WHEREOF, Indemnitors have duly executed
this Indemnity Agreement as of the day and year first above
written.
VERNON S. HOIUM
URSULA SHEEHY
•
•
-4-
STATE OF )
COUNTY OF )
On the day of 1989, personally
appeared before me VERNON S. HOIUM and to me personally known,
who acknowledged to me that he executed the foregoing document .
IN WITNESS WHEREOF I have hereunto set my hand and
official seal this day of 1989 .
Notary Public
(Notarial Seal) for the State of
My Commission expires :
STATE OF )
COUNTY OF )
• On the day of 1989 , personally
appeared before me and to me personally known,
who acknowledged to me that he executed the foregoing document .
IN WITNESS WHEREOF I have hereunto set my hand and
official seal this day of 1989 .
Notary- Public
(Notarial Seal) for the State of
My Commission expires :
•
-5-
CERTIFICATION OF MINUTES RELATING TO
$250 , 000 TAX 'INCREMENT REVENUE NOTE
(EVERGREEN TOWNHOMES) , SERIES 1989
Issuer: Housing and Redevelopment Authority of
St. Anthony, Minnesota
Governing Body: Board of Commissioners
Kind, date, time and place of meeting: A meeting held
on 1989, at o ' clock P.M. , at the City Hall .
Members present:
Members absent :
Documents Attached:
Minutes of said meeting (pages) : 1 through 11
H.R.A. RESOLUTION NO. 1989-002
RESOLUTION RELATING TO $250, 000 TAX INCREMENT
• NOTE (EVERGREEN TOWNHOMES) , SERIES 1989; AWARDING
THE SALE, FIXING THE FORM AND DETAILS, PROVIDING
FOR THE EXECUTION AND DELIVERY THEREOF AND THE
SECURITY THEREFOR
I , the undersigned, being the duly qualified and
acting recording officer of the public corporation issuing the
bonds referred to in the title of this certificate, certifying.
that the documents attached hereto, as described above, have
been carefully compared with the original records of said
corporation in my legal custody, from which they have been
transcribed; that said documents are a correct and complete
transcript of the minutes of a meeting of the governing body of
said corporation, and correct and complete copies of all
resolutions and other actions taken and of all documents
approved by the governing body at said meeting, so far as they
relate to said bonds; and that said meeting was duly held by
the governing body at the time and place and was attended
throughout by the members indicated above, pursuant to call and
notice of such meeting given as required by law.
WITNESS my hand officially as such recording officer
this day of May, 1989 .
Executive Director
(Seal)
• Boardmember introduced the
following resolution and moved its adoption:
H.R.A. RESOLUTION NO. 1989-002
RESOLUTION RELATING TO $250, 000 TAX INCREMENT
REVENUE NOTE (EVERGREEN TOWNHOMES) , SERIES 1989;
AWARDING THE SALE, FIXING THE FORM AND DETAILS,
.PROVIDING FOR THE EXECUTION THEREOF AND THE
SECURITY THEREFOR
BE IT RESOLVED by the Board of Commissioners (the
"Board") of the Housing and Redevelopment Authority of
St. Anthony, Minnesota (the "HRA" ) , as follows :
Section 1 . Recitals ; Authorization and Sale of Bonds .
1. 01 . Redevelopment Plan and Redevelopment Project .
This Board and the City Council of the City of St . Anthony,
Minnesota (the "City" ) have previously approved a redevelopment
plan and redevelopment project of the HRA under Minnesota
Statutes, Sections 469 . 001 to 469 .047, and a tax increment
financing plan of the HRA, under Minnesota Statutes, Section
469 . 174 to 469 . 179 , designated as Redevelopment Plan for
is Redevelopment Project No. 2 (the "Redevelopment Plan") ,
Redevelopment Project No. 2 (the "Redevelopment Project" ) and
Tax Increment Financing Plan for Tax Increment Financing
District No. 2 Ramsey County (the "Tax Increment Financing
Plan" ) . The Tax Increment Financing Plan established Tax
Increment Financing District No. 2 Ramsey County (the
"District") .
1.02 . Expenditure of Tax Increment Revenue. The
Redevelopment Project constitutes a "project" and the District
constitutes a "tax increment financing district" within the
meaning of Minnesota Statutes, Sections 469 . 174 to 469 . 179 , and
thus the HRA has authority under said Sections 469 . 174 to
469 . 179 to expend ad valorem tax increments derived from the
District to pay costs incurred or to be incurred by the City
and the HRA in aid of the Redevelopment Project , or to pay the
principal of and interest on bonds, notes or other obligations
of the HRA or City issued to finance such costs , in accordance
with the Redevelopment Plan.
1.03 . Computation of Tax Increment . The County
Auditor of Ramsey County upon application of the HRA has or
will certify to the HRA, the Gross Tax Capacity of all taxable
property in the District (the "Original Gross Tax Capacity" ) ,
•
• and is to certify to the HRA in each year the then current
Gross Tax Capacity of all taxable property in the District (the
"Current Gross Tax Capacity" ) . The Current Gross Tax Capacity,
less the Original Gross Tax Capacity, is the Captured Gross Tax
Capacity. The .ad valorem taxes derived from the property in
the District in each year, by application of the aggregate tax
capacity levied by all governmental entities having authority
to levy taxes on such property to the Captured Gross Tax
Capacity, is the Tax Increment to be derived from the District
(the "Tax Increment" ) .
1 . 04 . Redevelopment Agreement . The HRA has approved
a Redevelopment Agreement (the "Redevelopment Agreement") ,
between the HRA and Evergreen Development Corporation, a
Minnesota corporation ("Evergreen Development" ) . Under the
Redevelopment Agreement, Evergreen Development agrees to
redevelop the Redevelopment Project area and to make Soil
Corrections , as defined in the Redevelopment Agreement, to the
property included in the Redevelopment Project area . The
Redevelopment Agreement provides that upon the completion of
the Soil Corrections by the Redeveloper the HRA will issue to
the Redeveloper its Tax Increment Revenue Note (Evergreen
Townhomes) , Series 1989 (the "Note" ) in a principal amount
equal to the lesser of (i) $250, 000, or (ii) the cost of the
Soil Corrections .
• 1 . 05 . Performance of Requirements . All acts,
conditions and things which are required by the Constitution
and laws of the State of Minnesota to be done, to exist, to
happen and to be performed precedent to and in the valid
issuance of the Note having been done, existing, having
happened and having been performed, it is now necessary for
this Board to establish the form and terms of the Note, to
provide security therefor and to issue the Note as provided
herein.
Section 2 . Form of Note .
2 . 01 . Note. The Note shall be issued in
substantially the following form:
•
-2-
UNITED STATES OF AMERICA
STATE OF MINNESOTA
COUNTIES OF HENNEPIN AND RAMSEY
HOUSING AND REDEVELOPMENT AUTHORITY OF ST. ANTHONY
TAX INCREMENT REVENUE NOTE
(EVERGREEN TOWNHOMES)
SERIES 1989
No . $
Date of
Rate Maturity Original -Issue
12 .00% June 1, 2001 1, 1989
THE HOUSING AND REDEVELOPMENT AUTHORITY OF ST.
ANTHONY, Hennepin and Ramsey Counties, Minnesota (the HRA) ,
acknowledges itself to be indebted and, for value received,
hereby promises to pay to Evergreen Development Corporation, or
registered assigns (the - "Registered Owner") , the principal
amount specified above, on the maturity date specified above,
with interest thereon from the date hereof at the annual rate
• specified above, payable on January 1 in each year, commencing
January 1, 1991, all subject to the provisions referred to
herein with respect to the redemption of the principal of this
Note before maturity. The interest hereon and the principal
hereof, are payable in lawful money of the United States of
America, by check or draft of the HRA.
This Note is issued pursuant to a resolution adopted
by the Board of Commissioners on , 1-989 (the
"Resolution" ) to pay the capital costs of a redevelopment.
project to be undertaken in Tax Increment Financing District
No. .2 Ramsey County (the "District" ) -of the HRA, and is issued
pursuant to and in full conformity with the provisions of the
Constitution and -laws of the State of Minnesota thereunto
enabling, including Minnesota Statutes, Section 469 . 041,
Section 469 . 178 and Chapter 475 . This Note is payable solely
from tax increments to be derived from the District (the "Tax
Increment") which have been pledged to the payment of this Note
by the Resolution.
The Tax Increment received by the HRA will be
deposited by the HRA in the Bond Fund established by the
Resolution (the "Bond Fund") . Tax Increment on deposit in the
Bond Fund shall be applied first to pay or reimburse the City
• and HRA for payment of any out of pocket administrative
-3-
• xp aid or incurred b h i
expenses_ p y the City or HRA in connection with
the approval , establishment , and operation of Redevelopment
Plan for Redevelopment Project No . 2 of the HRA, Tax Increment
Financing Plan for Tax Increment Financing District No . 2
Ramsey County of the HRA or the Redevelopment Project No . 2 of
the HRA, together with interest on any such administrative
expenses paid by the HRA or the City from other funds at the
rate of twelve percent ( 12%) per annum from the date such
expenses are paid by the City or HRA until reimbursed from the
Tax Increment , second to pay interest then due and payable on
this Note, and third to pay principal then due and payable on
this Note. Any amounts remaining in the Bond Fund on any
January 1 , commencing January 1 , 1991 , following the payment or
reimbursement of all administrative expenses of the HRA or
City, together with interest thereon, and interest then due and
payable on the Note, shall be applied by the HRA to prepay the
principal of the Note in whole or in part, without premium,
together with accrued interest on the principal amount of this
Note prepaid. In the event that amounts on hand in the Bond
Fund are not sufficient to pay the principal of and interest on
this Note when due, the failure of the HRA to pay such
principal and interest shall not constitute a default hereunder .
This Note and the interest hereon shall not be deemed
• to constitute a general obligation of the State of Minnesota or
any political subdivision thereof, including, without
limitation, the City of St . Anthony, Minnesota (the "City" ) or
the HRA. Neither the State of Minnesota, nor any political
subdivision thereof, including, without limitation, the City or
the HRA, shall be obligated to pay the principal of or interest
on this Note or other costs incident hereto except from Tax
Increment pledged therefor -by the Resolution, and neither the
full faith and credit- nor the taxing power of the State of
Minnesota or any political subdivision thereof, including,
without limitation, the City or the HRA, is pledged to the
payment of the principal of or interest on this Note or other
costs incident hereto.
NEITHER THE HRA OR CITY MAKES ANY REPRESENTATION OR
WARRANTY AS TO THE EXEMPTION FROM FEDERAL INCOME TAXATION OF
THE INTEREST ON THE NOTE OR THAT THE TAX INCREMENT WILL BE
SUFFICIENT TO PAY THE PRINCIPAL OF OR INTEREST ON THIS NOTE
WHEN DUE.
All interest hereon shall be computed on the basis of
a 360 day year consisting of twelve thirty day months .
In the event the HRA shall fail to make when due any
interest payments or principal and interest payments required
• under this Note, the interest payment or principal and interest
payment so in default shall continue as an obligation of the
-4-
• HRA until the interest payment or principal and interest
payment in default shall have been fully paid. No interest
shall be payable on overdue installments of interest .
The principal amount of this Note may be prepaid,
either in whole or in part, on any date upon payment of the
price equal to the principal being so prepaid plus accrued
interest to the date of prepayment without premium.
As provided in the Resolution, the HRA will cause to
be kept at the office of the Executive Director of the HRA a
Note Register in which, subject to such reasonable regulations
as it may prescribe, the HRA shall provide for the registration
or transfer of ownership of this Note. This Note is
transferable upon the books of the HRA at the office of the
Executive Director by the Registered Owner hereof in person or
by its attorney duly authorized in writing, upon surrender
hereof together with a written instrument of transfer
satisfactory to the Executive Director of the HRA, duly
executed by the Registered Owner or its duly authorized
attorney, together with ( i) an executed investment letter from
the new Registered Owner in the form set forth in the
Resolution, ( ii) an opinion of counsel addressed to the HRA and
in form satisfactory to the HRA that such transfer complies
• with all applicable federal and State of Minnesota securities
laws, and ( iii) an indemnity agreement in form and substance
satisfactory to the HRA executed by the Registered Owner . Upon
such transfer the Executive Director of the HRA will note the
date of registration and the name and address of the new
Registered Owner upon the books of the HRA and in the
registration blank appearing below. Alternatively, the HRA
will at the request of the Registered Owner issue new notes in
an aggregate principal amount equal to the unpaid principal
balance of this Note, and of like tenor, except as to number
and principal amount, and registered in the name of the
Registered Owner or such transferee as may be designated by the
Registered Owner . The HRA may deem and treat the person in
whose name this Note is last registered upon the books of the
HRA with such registration noted on the Note as the absolute
owner hereof for the purpose of receiving payment of or on
account of the principal balance, redemption price or interest,
whether or not overdue, and for all other purposes , and all
such payments so made to the Registered Owner or upon its order
shall be valid and effectual to satisfy and discharge the
liability upon this Note to the extent of the sum or sums so
paid, and the HRA shall not be affected by any notice to the
contrary .
•
-5-
• IT IS HEREBY CERTIFIED, RECITED, COVENANTED AND AGREED
that all acts , conditions and things required by .the
Constitution and laws of the State of Minnesota to be done, to
exist, to happen and to be performed precedent to and in the
issuance of this Bond in order to make it a valid and binding
obligation of the HRA according to its terms have been done, do
exist, have happened and have been performed in regular and due
form as so required.
IN WITNESS WHEREOF, the Housing and Redevelopment
Authority of St . Anthony, Hennepin and Ramsey Counties, State
of Minnesota , by its Board of Commissioners, has caused this
Note to be executed by the signatures of its Chairman,
Secretary and Executive Director and sealed with the official
seal of the HRA and has caused this Note to be dated as of the
date set forth below.
Dated:
Secretary Chairman
• Executive Director
(Seal)
PROVISIONS AS TO REGISTRATION
The ownership of the unpaid principal balance of this
Note and the interest accruing thereon is registered on the
books of the HRA in the name of the regisrered holder last
noted below.
Date of Name and Address of Signature of
Registration Registered Holder Executive Director
Evergreen Development
Corporation
•
• Section 3 . Terms of Note, Execution and Delivery.
3 .01. Terms of the Note. The terms of the Note shall
be as set forth ' in the form of Note contained in Section 2 here
of and the Note shall be issued in the principal amount of the
lesser of (i) $250, 000 or ( ii) the costs of the Soil
Corrections, as defined in the Redevelopment Agreement, as set
forth in statement delivered to the HRA under Section 3(a) of
the Redevelopment Agreement .
3 .02 . Date of Note. The Note shall be dated as of
the date of receipt by the HRA of the statement to be delivered
to the HRA by Evergreen Development pursuant to Section 4 . 3 of
the Redevelopment Agreement .
3 .03 . Execution. The Note shall be executed on
behalf of the HRA by the signatures of the Chairman, Secretary
and Executive Director, and shall be sealed with its corporate
seal . In case any officer whose signature shall appear on the
Note shall cease to be such officer before the delivery
thereof, such signature - shall nevertheless be valid and
sufficient for all purposes .
3 .04 . Mutilated, Lost and Destroyed Note. In case
the Note shall become mutilated or be destroyed or lost, the
• HRA upon compliance by the registered owner thereof with any
applicable provision of law shall cause to be executed and
delivered a new Note of like outstanding principal amount and
tenor in exchange and substitution for and upon cancellation of
the mutilated Note, or in lieu of or in substitution for such
Note destroyed or lost, upon the registered owner ' s paying the
reasonable expenses and charges of the HRA in connection
therewith, and in case the Note is destroyed or lost, its
filing with the HRA evidence satisfactory to it and compliance
with any applicable provisions of law.
3 .05 . Registration of Transfer. The HRA will cause
to be kept at the office of the Executive Director a Note
Register in which, subject to such reasonable regulations as it
may prescribe, the HRA shal provide for the registration or
transfer of ownership of the Note. The Note shall be
transferable upon the books of the HRA by the registered owner
thereof in person or by its attorney duly authorized in
writing, upon surrender of the Note together with a written
instrument of transfer satisfactory to the Executive Director,
duly executed by the registered owner thereof or its duly
authorized attorney, together with (i) an executed investment
letter from the new registered owner in the form attached
hereto as Exhibit A, (ii) an opinion of counsel addressed to
• the HRA and in form satisfactory to the HRA that such transfer
-7-
• complies with all applicable federal and State of Minnesota
securities laws, and (iii) an indemnity agreement in form and
substance satisfactory to the HRA executed by the Registered
Owner. Upon such transfer the Executive Director shall note
the date of registration and the name and address of the new
registered owner on the books of the HRA and in the
registration blank appearing on the Note. Alternatively, the
HRA will at the request of the Registered Owner issue new notes
in an aggregate principal amount equal to the unpaid principal
balance of the Note, and of like tenor, except as to number and
principal amount , and registered in the name of the Registered
Owner or such transferee as may be designated by the Registered
Owner . The HRA may deem and treat the person in whose name the
Note is last registered upon the books of the HRA with such
registration noted on the Note as the absolute owner thereof,
whether or not overdue, for the purpose of receiving payment of
or on account _of the principal or interest and for all other
purposes , and all such payments so made to the registered owner
or upon its order shall be valid and effectual to satisfy and
discharge the liability upon such Note to the extent of the sum
or sums so paid, and the HRA shall not be affected by any
notice to the contrary.
3 . 06 . Prepayment . The principal of the Note shall be
subject to optional and mandatory prepayment as provided in the
• form of Note set forth in Section 2 hereof . In the event more
than one Note is outstanding at the time of any prepayment in
part, all of the Notes shall be prepaid pro-rata on the basis
of their outstanding principal amounts .
3 . 07 . Delivery. The Note shall be delivered to
Evergreen Development as provided in the Redevelopment
Agreement .
Section 4 . Security Provisions .
4 . 01. Bond Fund. The principal of and interest on
the Note shall be payable from the Tax Increment Financing
District No. 2 Ramsey County Bond Fund (the "Bond Fund" ) . So
long as the Note is outstanding and any principal thereof or
interest thereon unpaid, the Executive Director of the HRA
shall maintain the Bond Fund, as a separate and special account
to be used for the payment of the principal of and interest on
the Note . The HRA hereby irrevocably appropriates to the Bond
Fund the Tax Increments to be received from the District.
Until payment in full of the Note amounts on hand in the Bond
Fund shall be applied in the following order: first, to pay or
reimburse the HRA and City for payment of any out of pocket
administrative expenses paid or incurred by the City or HRA in
connection with the approval, establishment and operation of
•
-8-
• the Redevelopment Plan, the Redevelopment Project, the Tax
Increment Financing Plan and the District and the preparation,
execution, delivery and performance of the Redevelopment
Agreement, together with interest on any moneys advanced by the
City or HRA to pay such administrative expenses at the rate of
twelve percent ( 12%) per annum from the date of such payment
until reimbursed from the Tax Increment; second, to pay
interest on the Note when due; and third, to the payment of
principal on the Note when due . On each January 1 , commencing
January 1 , 1991 , any moneys remaining in the Bond Fund
following the payment of all expenses of the HRA or City,
together with any interest thereon, and interest then due and
payable on the Note, shall be applied by the HRA to prepay the
principal of the Note in whole or in part without premium. So
long as the Note is outstanding, the HRA will not issue any
additional obligations payable from the Tax Increment and will
not take any action which results in a reduction in the amount
of Tax Increment to be received from the District except to the
extent required by law.
4 . 02 . No Representations or Warranties of HRA or
City. Neither the HRA or City makes any representation or
warranty as to the exemption from federal income taxation of
the interest on the Note or that the Tax Increment will be
sufficient to pay the principal of or interest on the Note when
• due.
Section 5 . County Auditor Registration, Certification
of Proceedings , Investment of Moneys, Arbitrage, Designation cl
Note as Qualified Tax Exempt Obligation and Maturity of Note.
5 . 01 . County Auditor Registration. The Executive
Director is hereby authorized and directed to file a certified
copy of this resolution with the County Auditors of Hennepin
and Ramsey Counties, together with such other information as
the County Auditors shall require, and to obtain from each
County Auditor a certificate that the Note has been entered on
his bond register as required by law.
5. 02 . Certification of Proceedings . The officers of
the HRA and the County Auditors of Hennepin and Ramsey Counties
are hereby authorized and directed to prepare and furnish to
the purchaser of the Note and to Dorsey & Whitney, Bond
Counsel, certified copies of all proceedings and records of the
HRA, and such other affidavits, certificates and information as
may be required to show the facts relating to the legality and
marketability of the Note as the same appear from the books and
records under their custody and control or as otherwise known
to them, and all such certified copies, certificates and
affidavits, including any heretofore furnished, shall be deemed
representations of the HRA as to the facts recited therein.
-9-
• 5 .03 . Tax Covenant . The HRA covenants and agrees
with the holders from time to time of the Bonds that it will
not take or permit to be taken by any of its officers,
employees or agents any. action which would cause the interest
on the Note to - become subject to taxation under the Internal
Revenue Code of 1986, as amended (the "Code") , and the Treasury
Regulations promulgated thereunder (the "Regulations") , and
covenants to take any and all actions within its powers to
ensure that the interest on the Note will not become subject to
taxation under the Code and the Regulations . The HRA will
cause to be filed with the Secretary of Treasury an information
reporting statement in the form and at the time prescribed by
the Code and will comply with the arbitrary rebate requirements
of Section 149( f) of the Code.
5 .04 . Arbitrage Certification. The Chairman,
Secretary and Executive Director, being the officers of the HRA
charged with the responsibility for issuing the Note pursuant
to this resolution, are authorized and directed to execute and
deliver to the purchaser thereof a certificate in accordance
with the provisions of Section 148 of the Code, and Sections
1 . 103-13 , 1 . 103-14 and 1 . 103-15 of the Regulations , stating the
facts, estimates and circumstances in existence on the date of
issue and delivery of the Note which make it reasonable to
expect that the proceeds of the Note will not be used in a
• manner that would cause the Note to be arbitrage bond within
the meaning of the Code and Regulations.
Section 5 . 05 . Qualified Tax-Exempt Obligations . The
Board hereby determines and declares that the HRA ( including
any "subordinate entity" within the meaning of Section
265(b) (3) (E) o,f the Code) does not reasonably anticipate to
issue in calendar year 1989 tax-exempt obligations in an
aggregate principal amount greater than $10, 000, 000 (exclusive
of Private Activity Bonds, but including qualified 501(c) (3)
bonds as defined in Section 145 of the Code) . The Board hereby
specifically designates the Note as "qualified tax-exempt
obligations" within the meaning of Section 265 of the Code. In
any event the Board will not designate more than $10, 000, 000 of
its obligations issued in calendar year 1989 as such "qualified
tax-exempt - obligations . "
Section 5 . 06 . Maturity of Note. This Board estimates
that the Tax Increment will be sufficient to pay when due the
principal of and interest on the Note.
Chairman
Attest :
•
Executive Director
-10-
The motion for the adoption of the foregoing
resolution was duly seconded by Boardmember and
upon vote being taken thereon, the following voted in favor
thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted,
and was signed by the Chairman, whose signature was attested by
the Executive Director .
•
•
-11-
EXHIBIT A
FORM OF INVESTMENT LETTER
[Date]
Housing and Redevelopment Authority
of St . Anthony, Minnesota
3301 Silver Lake Road
St . Anthony, Minnesota 55418
Re: Tax Increment Revenue Note
(Evergreen Townhomes) , Series 1989
Housing and Redevelopment Authority of
St . Anthony, Minnesota
Gentlemen :
In connection with the purchase of the Tax Increment
Revenue Note (Evergreen Townhomes) , Series 1989 (the Note)
issued by the Housing and -Redevelopment Authority of St .
• Anthony, Minnesota (the Issuer) , I acknowledge and represent as
follows :
1 . I am a with sufficient
knowledge and experience in financing matters, including the
purchase and ownership of municipal revenue bonds; to be able
to evaluate the merits and risks of the purchase of the 'Note.
2 . I have requested such financial and other
information regarding the tax increment revenue to be derived
from Tax Increment Financing District No . 2 Ramsey County of
the Issuer (the District) as I believe relevant to my
investment decision and have been provided with all such
requested information. I have reviewed the form of the Note
and the resolution adopted It 1989 , of the Board of
Commissioners under which the Note is issued (the Resolution) .
3 . I understand and acknowledge that the Note has not
been registered under the Securities Act of 1933 nor under the
securities laws of the State of Minnesota pursuant to relevant
exemptions contained therein. I recognize that a future sale
of such Note by me could require registration under the
securities laws of one or more states .
•
A-1
• 4 . I understand that the Note is payable as to
principal and interest solely from the tax increment to be
derived from the District pledged to the payment thereof under
the Resolution. I further understand that certain expenses of
the Issuer and the City of St . Anthony, Minnesota (the City) ,
together with interest, will be paid from the tax increment to
be derived from the District prior to the payment of the
principal of and interest on the Note . I further understand
that the Note does not now and shall never represent or
constitute a general obligation of the Issuer or the City and I
have no right to have taxes levied by the Issuer, the City, the
State of Minnesota or any political subdivision thereof for the
payment of the principal and interest on the Note.
5 . I am purchasing the Note for my own account and
not with a view to the- distribution thereof, but I will retain
control over the disposition of the Note. I do not presently
intend to divide the Note or resell or otherwise dispose of any
or all of the Note, except as permitted by law and. subject to
applicable securities laws and regulations thereunder.
6 . I acknowledge that neither the Issuer or the City
of St. Anthony, Minnesota is making any representations or
warranties as to the tax exemption of the interest- to be paid
• on the Note or the sufficiency of the tax increment to be
derived from the District to pay principal of and interest on
the Note when due.
•
A-2
H.R.A. RESOLUTION 1989-003
• Commissioner introduced the
following resolution and moved its adoption:
RESOLUTION RELATING TO REDEVELOPMENT
PLAN FOR REDEVELOPMENT PROJECT AREA NO.
2 RAMSEY COUNTY, AND THE REDEVELOPMENT
PROJECT TO BE UNDERTAKEN PURSUANT THERETO
AND TAX INCREMENT FINANCING PLAN FOR
TAX INCREMENT FINANCING DISTRICT NO.
2 RAMSEY COUNTY; APPROVING REDEVELOPMENT
PLAN FOR REDEVELOPMENT PROJECT AREA NO.
2 RAMSEY COUNTY AND THE REDEVELOPMENT
PROJECT TO BE UNDERTAKEN PURSUANT THERETO,
TAX INCREMENT FINANCING PLAN FOR TAX
INCREMENT FINANCING DISTRICT NO. 2 RAMSEY
COUNTY AND THE ESTABLISHMENT OF TAX INCREMENT
FINANCING DISTRICT NO. 2 RAMSEY COUNTY,
AND REQUESTING THE APPROVAL OF THE CITY
COUNCIL
BE IT -RESOLVED, by the Housing and Redevelopment
Authority in and for the City of St . Anthony, Minnesota (the
"HRA" ) , as follows :
• 1 . It has been proposed that the HRA approve a
redevelopment plan, as defined in Minnesota Statutes, Section
469 .002 , subdivision 16 , to be designated as Redevelopment
Plan for Redevelopment Project Area No. 2 Ramsey ( the
"Redevelopment Plan" ) , and a redevelopment project to be
undertaken pursuant thereto, as defined in Minnesota Statutes,
Section 469 .002 , subdivision 14 , to be designated as
Redevelopment Project No. 2 Ramsey County (the "Project" ) ,
and that in order to finance the public redevelopment costs
to be incurred by the HRA in connection with the Redevelopment
Plan and Project, it has been further proposed that the HRA
approve a tax increment financing plan, pursuant to the
provisions of Minnesota Statutes, Section 469 . 175, to be
designated as Tax Increment Financing Plan for Tax Increment
Financing District No. 2 Ramsey County (the "Financing Plan" )
which establishes a tax increment financing district, as
defined in Minnesota Statutes, Section 469 .174 , subdivision
9 , to be designated as Tax
In Financing District No.
2 Ramsey County ( the "District" ) .
2 . It has been proposed that the HRA and Evergreen
Development Corporation, a Minnesota corporation ( the
"Developer" ) enter into a Redevelopment Agreement for the
Evergreen Townhomes Project ( the "Redevelopment Agreement" ) ,
• covering the property subject to the Redevelopment Plan and
included in the District . A draft of the Redevelopment Agreement
IJ has been presented to this Board.
.51
3 . The Redevelopment Plan, the Project, the' Financing •
Plan and the District are described in the attached documents
entitled " Redevelopment Plan For Redevelopment Project No.
2 Ramsey County" and "Tax Increment Plan For Tax Increment
Financing District No. 2 Ramsey County" , and the Redevelopment
Plan, the Project, the Financing Plan and the District as
so described are hereby approved, subject to execution of
the Redevelopment Agreement and the Executive Director of
the HRA and the attorney for the HRA are hereby authorized
and directed to proceed with the implementation of the
Redevelopment Plan, the Project, the Financing Plan and the
District. The Redevelopment Agreement presented to this
Board is hereby approved, subject to such changes and additions
thereto as are approved by the Chairman and Executive Director
of the HRA, such approval to be evidenced by the execution
and delivery of the Redevelopment Agreement by . the HRA.
Upon the approval of the form and content of the Redevelopment
Agreement by the Chairman and Executive Director, any two
officers of the HRA are hereby authorized and directed to
execute and deliver the Redevelopment Agreement on behalf
of the HRA, together with such other documents, agreements
and instruments to be executed and delivered by the HRA pursuant
to the Redevelopment Agreement . The Executive Director is _ - -
further authorized and directed to request the appropriate
authorities of Ramsey County to certify the original assessed •
value of the District pursuant to Minnesota Statutes, Section
469 . 177 following (i )' approval of the Financing Plan and
District by the St. Anthony City Council in accordance with
Minnesota Statutes, Section 469 . 175, subdivision 3 , and (ii )
the execution and delivery by the HRA -and the Developer of
the Redevelopment Agreement .
4 . The Redevelopment Plan and the Project were
transmitted to the St. Anthony Planning Commission (the
"Commission" ) for its review and opinion. The Commission
delivered to the HRA its written opinion on the Redevelopment
Plan and the Project.
------ 5.--The---Redevelopment- Plan-,--the- P-rojec-t-,—the Financing --- --- -
a Plan and the District, together with the written opinion
of the Commission, have been presented to the City Council
: . for a public hearing on the Redevelopment Plan and the Project
pursuant to Minnesota Statutes, Section 469 . 028, subdivision
1 and the Financing Plan pursuant to Minnesota Statutes,
Section 469 . 175, subdivision 3 .
Dated the day of 1989 .
Chairman
Attest :
Acting Executive Director
-2-
REDEVELOPMENT PLAN FOR
REDEVELOPMENT PROJECT NO. 2
RAMSEY COUNTY
HOUSING AND REDEVELOPMENT AUTHORITY
ST. ANTHONY, MINNESOTA
MAY, 1989
REDEVELOPMENT PLAN
FOR REDEVELOPMENT PROJECT AREA NO. 2 RAMSEY COUNTY
CITY COUNCIL
Robert Sundland, Mayor
Richard Enrooth
Judy Makowske
George Marks
Clarence Ranallo
HOUSING AND REDEVELOPMENT AUTHORITY
Robert Sundland, Chairman
Richard Enrooth
Judy Makowsk:e
George Marks
Clarence Ranallo
PLANNING COMMISSION
George Wagner, Chairman
John Madden
Ron Hansen
Rick. Werenicz
Rose Mary Fran_ese
Edward -Brownell
Steve London
CITY ATTORNEY
William Soth, Esq.
Prepared By:
DEVELOPMENT ADVISORY SERVICES, INC.
7404 Grand Avenue South
Richfield, MN 55423
TABLE OF CONTENTS
Redevelopment P-1 an . . . . . . . . . . . . . . . . 1
Land Use .Flan. . . . . . . .
Urban Design Guidelines. . . . . . . . . . . . . . 5
Redeveloper ' s Obligations. . . .. . . . . . . . . . 1=
Land Acquisition . . . . . . . . . . . . . . . . . 14
Relocation Flan. . . . . . . . . . . . . . . . . . 15
Method of Financing. . . . . . . . . . . . . . . 17
DESCRIPTION OF REDEVELOPMENT PROJECT AREA
REDEVELOPMENT The Redevelopment Project Area No. 2, is
PLAN generally described as the area Forth of
Soo Line Railroad and east of Fordham
Ur-ive.
The site is currently divided among four
property owners and a City Street, the
City owns one parcel and the street
easement. The parcels are described in
Attachment A. The project boundary map is
included -as Attachment A-1 .
1
GOALS AND OBJECTIVES
"fhe goals and objectives ar•e to be
accomplished during the next three years
through , government incentives and private
actions. They ar•e organized into the
following categories:
o Land Use/Economic Development
o Physical Appearance
o Financial Feasibility
GOAL: To Provide Housing and Add to Tax
Base
OBJECTIVES:
o Accommodate medium-density housing
o Promote owner--occupied housing
o Promote moderate to middle income
housing
o Promote housing -for- first-time buyers,
as well as exisiting "empty nester,"
and adult mar•k:et
o Pr-ovide housing which adds to the tax
base
o Promote a variety of housing sizes,
according to the economic market
GOAL: To Promote a Housing Development
Designed to Complement the
Neighbor hood and One that is
Marketable
OBJECTIVES:
o Develop housing which does not e:cceed
stories
o Provide site amenities to enrich the
living environment including the
following design features:
- useable open space
- reuse of unuseable land
- bu'ildings at-r-anged in cluster, or•
cur•va 1 i near• design
- protect future residences from the
noise of the r-ai.lroad by use of
setbacks and landscaping
- provide extensive landscaping
along the ra i l road and Fnr•dham
Drive
provide resident and guest parking
:y
landscape the site with over•stor•y
trees, ornamental trees and shrubs
provide wood, brick: or• Simi lar•
building facades in, a
complementary design
- provide vehicle acc-"ss to reduce
thr•u-traffic
promote energy-efficient housing
o Redevelop the size according to City
or•d inances
GOAL: To Eliminate Deter•ior•ating
Influences
OBJECTIVES:
o Combine the irregular, shaped property
with other property to prevent poor,
planning and poor development
o Cot,r-ect unusual soil deficiencies by
substantial grading, filling, . and
other, physical preparation
o Assemble underdeveloped land for•
medium-density redevelopment
o Reduce the unfavorable effect upon the
value of surrounding pr•oper•ty and the
amount of taxes being produced
o Eliminate conditions which prevent
pr-ivate development by reducing the
estimated cost of physical pr•epar•ation
to the redeveloper because the cost of
such preparation will exceed the fair,
mark:et value of the land
4
DESIG14 STA14DARDS
URBAN DESIGN One of the primary objectives of the St.
GUIDELINES Anthony HRA is to create a positive living
environment while complementing the
neighborhood. To accomplish this
objective, urban design guidelines suggest
major landscaping and building elements.
This design criteria would guide the
overall design character- of the area.
The goal is to set the design tone and to
establish aesthetic and functional
standards within which future design and
development should take place. All final
site designs will be subject to review and
approval by the St. Anthony HRA so that
proper coordination and the
inter-relationship of the various phases
of the plan can be maintained. In
addition, any redeveloper shall proceed
through the normal city review process.
The following design concepts will guide
the over-all redevelopment. Although,
periodica".y, specific problems will arise
require special treatments
which will r•e q p , it
is essential that the basic concept of
materials and character be continued
throughout the site. Design elements are
presented here within the following
categories:
C
J
• o Open space - preservation, screened
landscaping, plant materials
o Building structure
o Parking, lighting
o Open space - useable open space within
the developable portion of the site
shall be retained as useable open
space which consists of areas for-
active/passive recreation as well as
landscaped areas.
Storm water retention will be required
on site. The standards for, storm
water, retention should generally be
those of the Rice Creek Watershed .
District.
Landscaping within the site should
consist of overstory trees ( 1-1/2 to
2-1/2 inch caliper) . Ornamental trees
and shrubs should be used to accent
and screen. A landscape theme for• the
entire site will tie the site together,
and provide a more pleasant living
environment. Harmony and functional
use will be created by the following
guidelines:
Landscaping: Subject to
applicable ordinances, trees and
Landscaping will be the
responsibility of the redeveloper.
6
The various types of - landscape
material (deciduous trees,
evergreens, decidous ornamental
trees, deciduous shrubs, evergreen
shrubs and sod) will be planted
to:
* provide continuity to the area
* provide image, beauty and
shade for residents and
pedestrians
decrease air• and noise
pollution
create a unified street and
parking area image throughout
the redevelopment project
be planted along public
streets but outside of the
right-of-way
The plant material for residential
medium-density and low-density
property boundaries should be used
to:
provide year-round color and
aesthetic beauty to the area
* provide visual and, where
possible, noise separation
between street noises and
medium-density, residential or
low-density and medium-density
residential land uses
7
plant material should be
selected:
1 . which will not generally
be susceptible to disease
which does not beat, fruit
which might cause unusual
maintenance problems
which does not constitute
dangers to the yener•al
public
4. which provides low
maintenance costs and
longevity
In addition, specific plant
materials should be selected
according to their characteristics
in order- to:
provide interest year•-round
provide a feeling of peace and
tranquility
pt•ov i de shade
screen undesirable views and
adjacent land uses
provide pedestrian/traffic
control and vehicle er-ranee
identification and control
BUILDING STRUCTURES
Clearly, one of the most significant
visual impacts on any area will be that
made by new buildings. Because of this,
S
it is important that the design harmony
and continuity be car•r•ied throughout the
area by means of several major' design
elements as they pertain to the building
facade. In addition, it is essential that
the new buildings relate visually to the
existing neighborhood. The following
design guidelines ar-e used to create this
harmony:
0 Building size - Buildings and
individual dwelling units should range
in size to accommodate the pr,imar•y
mar•k:et while providing sufficient room
for- comfor•tab le living.
o Pr•imar•y building material -, Should be
consistent with sur•r•ounding building
construction. Generally, the
character, should be created by natural
materials. These would include
deep-tone brick, stucco, stone and
low-maintenance wood or- other,
low-maintenance materials. Similar
facade treatments or, coordination of
treatments should be carried
throughout all sides of the building
and throughout the redevelopment.
Roof lines, building heights and
architectural scale should complement
the existing neighborhood.
o Site design - The site should be
designed in clusters or- a cur•val inear-
design to reduce the rigid, straight
line nature and create a feeling of
open space.
9
u Building height - The ma::imam height
of the building should not e::teed
-li- stories, measured from the
average ground elevation to the
midpoint of the roof.
o Garages - All accessory buildings
(garages, storage buildings or•
maintenance buildings) should be
attached to the principal structure
with an enclosed passageway between
the accessary building and the housing
str•uctur•e. All garbage should be
stored in the garages except on pick-
up day.
o Building codes - All str•uctur•es shall
conform to the St. Anthony Uniform
Building Code adopted by the City and
other, codes and regulations related to
residential development.
LIGHTING AND PAFI:I NG
o Lighting - The illumination should be
downward directed and shall be mounted
at heights appr•opr•iate to the building
elevation.
o Par-king and traffic access - Par•Iring
lots. shall be landscaped with
over•stor•y trees. The trees shall be
interspersed throughout the parking
areas so that uniform landscape affect
is achieved. Shrubs and grass
plantings should be located on all
1 r7
• non-har-d surface areas. Far•k.ing lots,
roadways and drives will be
constructed of bituminous or, concrete
pavement material which will leave the
area in a dust-free condition. All
roadways will be bor•der•ed by concrete
curbs and concrete gutters. All
par•k: ing spaces will be clearly
marked. Pat! F-ing areas and roadways
will be designed with an internal
catchbasin and storm water, system
which should be adequate to minimize
water, ponding in parking and driving
areas. The parking area and garages
should be designed to accommodate 2
cars per- dwelling unit while
maximizing green areas. Recreational
vehicle, boat or, trailer storage
should be prohibited on the site.
Roadways will be a minimum of 28 feet
width from curb face to curb face.
Parking should only be allowed on one
side of the roadway. All roadways
should be constructed to City Design
Standards.
11
• REDEVELOPER'S fhe genet-al r-equir-ements to be imposed
OBLIGATIONS upon r-edeveloper- (s) by contr-act ar-e as
follows:
o 'To redevelop. the land and construct
buildings in accordance with this
redevelopment plan
o To commence and complete the
improvements within a reasonable
period of time, as determined by the
St. Anthony HRA and set for-th in a
contract with the r-edeveloper-
o To design and construct buildings and
site improvements to conform to the
Urban Design Guidelines of this plan
and such other- guidelines as may be
adopted by the St. Anthony HRA
o To conform to the codes and
regulations of the City of St. Anthony
and the State 'of Minnesota including
zoning, building, health, fire and
life safety codes
o To establish a Homeowner 's Association
or- such other, association as allowed
by law for- the long-teem maintenance
of the pr-oper-ty
o Not to sell the land before
impr-ovements ar•e made without the
pr-ior, consent of the St. Anthony HRA
o To devote the pr-oper-ty only to the
uses permitted under- this plan for- a
per-iod of 12 year-s fr-om the date of
the contract or- agreement
12
o Not to discriminate on the basis of
race, se." color-, creed, national
origin, or for any reason prohibited
by law, relative to the sale. lease,
transfer, or, occupancy of the property
covered by contract with the
Authority. In addition, the
redeveloper will be required to file
with the United States Depar•tmen.t of
Housing & Urban Development THUD) a
Fair Housing 11ar1eting Flan and to
carry out that plan in accord with
federal laws and regulations
o Prrovide all public and private
utilities from the existing public
utility systems
o All public and private utility
services such as water, sewer-, gas,
electric and telephone that serve the
parcels of land will be placed
underground by the redeveloper-
0 Cooperate with, and provide
information to the St. Anthony HRA
which may be requir-ed from time to
time by statutes or- the St. Anthony
HRA resolutions
1•J
LAND No proper-ties will be acquired by the
ACQUISITION St. Anthony HRA.
Less than 70% of the parcels in the
redevelopment project area are occupied by
buildings, streets, utilities or other,
improvements. Except for 3 houses, the
land is vacant. The 3 houses are included
in the second phase of redevelopment.
Any property .acquisition will be
accomplished by the redeveloper without
St. Anthony HFA assistance.
14
RELOCATION The St . Anthony HRA accepts its obligation
PLAN under, federal , state and local law and the
appropriate regulations adopted by the
Unite-' States Department of Housing &
Urban Development (HUD) for- relocation.
The St. Anthony HRA will administer-
relocation services for the families,
individuals and businesses to be displaced
by actions of the St. Anthony HRA which
ar-e limited to soil correction. Relocation
regulations and St. Anthony HRA policy is
to:
o Prior- to approval of this
redevelopment plan, the St. Anthony
HRA has been satisfied that there is a
feasible method of temporary
relocation of families to be displaced
from the project area. Also,
accommodations are available, or, will
be provided, in the pr-oject area or,
other, areas not less desirable in
r-egar-d to public utilities and
public/commer-cial facilities. . . at
rents or- prices within the financial
means of the families displaced from
the project area. The St. Anthony HRA
will provide services to find decent ,
safe and sanitar-y dwellings for•
displaced families.
15
o In conjunction with, and as part of
the action to acquire property,
relocation and relocation services
will be provided ' by the St. Anthony
HRA to all relocatees in accord with
the 197U Uniform Real Estate
Acquisition and Relocation Act
(Uniform Act) and subsequent
regulations of the United States
Department of Housing & Urban
Development (HUD) .
o There are no relocations associated
with phase one of this redevelop�rent.
o There are three single family homes to
be acquired by the redeveloper as
phase two of this redevelopment.
Three relocations will be required as
part of phase two.
16
METHOD OF The public purpose of this redevelopment
FINANCING allows financing by tax increment
financing. The Tax Increment Flan is
hereby made a part of this Redevelopment
Flan as a Method of Financing. Tax
increment will be used for soil correction
so that this property may be redeveloped.
17
• TAX INCREMENT FINANCING PLAN
CITY COUNCIL
Robert Sundland, Mayor,
Richard Enr•ooth
Judy Makowske
George Mar•k.s
Clarence Ranallo
HOUSING AND REDEVELOPMENT AUTHORITY
Robert Sundland, Chairman
Richard Enr•ooth
Judy Mak:owsk.e
George Marks
Clarence Ranallo
CITY ATTORNEY
William Soth, Esq.
PREPARED BY:
DEVELOPMENT ADVISORY SERVICES, INC.
7404 Girard Avenue South
Richfield, MN 55423
i
TABLE OF CONTENTS
FOREWORD
DEFINITIONS
A. STATEMENT OF OBJECTIVES
B. CLASSIFICATIO14 OF THE TIF DISTRICT
C. REDEVELOPMENT PROGRAM
1 . Development Program for the Redevelopment
District
Property to be included in the TIF Distr ict
Property to be Acquired
4. Development to Occur- Within the TIF District
D. DEVELOPMENT ACTIVITIES
1 . Private Development Activity
2. Public Development Activities
E. FINANCIAL ANALYSIS OF THE TIF DISTRICT
1 . Original Gross Tax Capacity and Original Tax Capacity Rate
2. Captured Gross Tax Capacity
Duration of TIF District
F . ESTIMATED IMPACT OF THE TIF DISTRICT ON OTHER
TAXING JURISDICTIONS
G . ADMINISTRATIVE PROCEDURES AND REQUIREIIENTS
1 . Modification of the TIF Plan or, Chanqe in
boundaries of the TIF District
2. Use of Ta:; Increment
3. Excess Tax Increments
4. Tax Increment Account
5. Limitation on Administrative Expenses/County Expenses
6. Limitation on Increment
%. Annual Disclosure
8. Administration of the. TIF District
9. Fiscal Disparities Election
2
FOREWORD
the Ta;; Increment Financing Flan has been developed in
con iorm,�,knc� with the procedures and requirements of the
Minnesota T.+:: lncre►nent Financing Act, Minnesota Statutes
Sections 461i. 1 r + to •+b`:. 1 79.
EAHIBL f ►;: Legal Description and Boundary 11ap
EAHIBIT Be Private Development Proposal . Flans and
Developrr►tr►t Schedule, City voals and
Objectives
ExH1811 D= Procedural Documents
1 . Resolution requesting the County
Auditor to certify the Origir►akI
valuation
�. HRA Resolution Designating a Soils
Condition TIF District
3. City Council Resolution Designatinq a
Soils Condition TIF District
4. Reason and Facts Supporting the
Findings for Establishment of a Soils
Condition •TIF District
3
DEFINITIONS
The following terms used in this document have the
following meanings given to them:
"City" means the City of St. Anthony, Minnesota, located in
Hennepin and Ramsey Counties.
"HRA" means the St. Anthony Housing and Redevelopment
Authority.
"Plan" means the Comprehensive Plan of the City of St.
Anthony.
"Project Area" means a Redevelopment Project Area proposed
by the Housing and Redevelopment Authority and established
by. the City pursuant to the Redevelopment Act .
"Redevelopment Act" means Minnesota Statutes, Sections 469.001 to
469.047.
"Redevelopment Agreement" means an agreement. enter•ed into
between Evergreen Associates and the St. Anthony Housing
and Redevelopment Authority.
"Redevelopment Plan" means a Plan adopted by the City
pursuant to the Redevelopment Act.
"TIF Act" means the Minnesota Ta:c Increment Financing Act,
Minnesota Statues, Sections 469. 174 to 469. 179, as amended.
"TIF District" means Tax Increment Financing District No. 2
Ramsey, a Soils Condition Tax Increment Financing District
proposed by the Housing and Redevelopment Authority and
established by the City pursuant to the TIF Act.
"TIF Plan" means the Tax Increment Financing Plan for-. Tax
Increment Financing District No. Ramsey, set forth in
this document, adopted by the HRA and City pursuant to the
TIF Act.
4
TAX INCREMENT FINANCING PLAN
TAX INCREMENT FINANCING DISTRICT NO. 2 RAMSEY
A. STATEMENT OF OBJECTIVES
The Authority determines that it is necessary,
desirable, and in the public interest to create a Soil
Condition Tax Increment Financing District in the City
of St. Anthony pursuant to the provisions of the TIF
Act. The purpose of the TIF District is to finance
soil correction to enable the redevelopment of property
into multi-family housing.
The Flan and Housing Assistance Flan identifies a need
for• housing and establishes housing goals for• the
City. Also, the Plan provides for• multi-housing
development including redevelopment. The purpose of
the HRA 's undertaking is to accomplish the Plan and
goals as approved by the City. Also, the HRA and City
have approved a Redevelopment Plan for this TIF
District and have included this TIF District in a
Project Area. The purpose of the HRA 's undertaking is
to accomplish the goals of the Redevelopment Plan.
The purpose of the Soil Condition TIF District is to
provide a means for• financing soil correction so the
Project Area can be redeveloped. The redevelopment
will make it possible for this area of the _City located
within the TIF District to pay ta::es for• services,
reduce the blighting influences of vacant, poor- soil
land, - and provide housing. The redevelopment would not
occur, but for the use of TIF.
5
The specific objectives of the TIF District ar-e as
follows:
1 . To provide financing so that blighted, vacant land
can be developed for, housing;
2. To provide opportunities for- the development of
land within the TIF District;
3. To increase the supply of housing;
4. To preserve and enhance the quality of life of the
City by providing a range of housing opportunities;
5. To provide maximum opportunity, consistent with the
needs of the City, for development by private
enterprise;
6. To alleviate a shortage of decent, safe, and
sanitary housing;
7. To .create employment; and
8. to provide decent, safe, and sanitary urban
dwellings, apartments, or• other, living
accommodations for persons of moderate income or,
for- veterans and servicemen and the ir• families
pursuant to Minnesota Statutes 469.002.
6. CLASSIFICATION OF THE TIF DISTRICT
The T-IF District will encourage the redevelopment of a
substandard area which would not be developed without
assistance. It will result in increased housing in the
City, and it will result in the pr•eser•vation and
enhancement of the tax base of the City.
6
0
The cr,i ter,ia for• a Soils Condition Tax Increment
Financing District are satisfied as follows:
CRITERIA OIJE
Less than 70 of the parcels in the district are
occupied by buildings, streets, utilities or, other,
improvements:
PROPERTY LIST
GROSS TAX LAND SOIL
P I D LEGAL ANER SF CAPACITY USE COND I T I 014
1587 Lot 1 , 61k 4 Bochnak 37375 S Vacant Poor-*
159 Lot 2, blk: 4 Bochnak 17375 Vacant Poor,
1626 Part Lots, Blk4 Bochnak: 32164 Vacant Pool,
1642 Fart Lot6, 91k:4 BOChnak 43177 Vacant Poor-
1600 Lot 3, B14::4 Bochnak 69696 Vacant Poor,
blk 2 City 43299 Vacant Pool-
-City 2r)2oo Vacant Poor
1655 Lot 7, B 1 k:4 Reid 20000 House Good
Reid 41 794 Vacant Poor-
1613 Fart Lot5, Blk4 Henessey 7425 House Good
1639 Fart Loth, Blk4 Sherman 7476 House Good
1752 Lot 5, Blk:l Nordah1 13340 Vacant Good
Vi l lel la Add'
373321 9+
Occupied by bldg or, Improvements 27.27%
Pool, Soils 67. 08
+� See soils report.
CONCLUSION: Just over, 27% of the district is occupied
by buildings, streets, utilities or other, improvements.
CRITERIA TWO
Unusual terrain or, soil deficiencies for- 80 of the
act-eage in the district require substantial filling,
grading or- other, physical prepar*ation.
CONCLUSION: The district is 6. 57 acres. Eighty seven
percent of the district is poor. soils needing fill .
7
CRITERIA THREE
The estimated cost of physical preparation when added
to the fair, market value of the land upon inclusion in
the district exceeds the anticipated fair- market value
of the land upon completion of the preparation.
The redeveloper has agreed to purchase part of the
property for $15C), This part. of the property
r•equ i res soil cor•rec t i on and is identified as Phase I .
This acquisition value is $. 68 pet, sq. ft. The
estimated soil correction cost is $ 250,000.
In summary:
Estimated cost of physical preparation $ 250,000
plus the estimated value of the land equals
$400,000. Typical land value for• townhouse
development ranges from $12,000 to pet,
acre.
'The redeveloper has agreed to en ter, into a
redevelopment agreement for- development of over 51)% of
the land having unusual soil deficiencies.
CONCLUSION: The proposed development will have 37
townhouses in it. The total acreage of Phase One is
5. 05 acres. When applied to Phase One ($20,000 x 5. 05
acres) , the anticipated fair- market value upon
completion would be $lol ,Cir:ri).
Pursuant to Minnesota Statutes, the TIF District
qualifies as a Soils Condition Ta:. Increment Financing
District.
8
C. REDEVELOPIIE14T PROJECT
1 . Redevelopment Fr•o Jett for the District
The Pt,oject within the meaning of Minnesota
Statutes for, the Soil Condition TIF District is
incorporated within the TIF Flan. The Pt,oject has
the boundaries as described in Exhibit A and these
boundaries ar-e the same as the TIF District. The
redevelopment expected to occur, within the TIF
District is described in Exhibit B.
2. Fr•oper•ty to be Included in the TIF District
All property to be included in the TIF District is
located within the City of St. Anthony, legally
described in E:chibit A, and as shown on the map
attached as E::h i b i t A-1 , and shows the boundar•ies
of the TIF District.
3. Fr•oper•tY to be Acquired
There is no property to be acquired by the St.
Anthony HRA in the TIF District.
4. Development to Occur, Within the TIF District
The TIF District is located entirely within the
City of St. Anthony. The specific Development
Proposal for- the TIF District is identified in
E:.hibit B. In general , the development consists of
about :37 townhomes and their- accesso►•y land uses.
9
D. RLDEVELOPMENT ACTIVITIES
1 . Private Redevelopment Activity
All private redevelopment proposed for, the Project
of which the HRA and City ar•e aware are about 107
townhomes and their, accessory land uses. The City
is not aware of any contracts having been entered
into at the time of the preparation of this TIF
Flan with respect to any other, development
proposals.
Public Development Activities
It is not anticipated that any public development
activities will occur, within this District which
will be financed by TIF. Soil Correction to be
financed by TIF will be completed by the
redeveloper. Upon completion of the Soil Correction by the
redeveloper, the HRA will reimburse the redeveloper for
the costs of the soil correction work by issuing to the
redeveloper its tax increment revenue note (the "Note")
in the principal amount of the lesser of (i) $250,000 or
(ii) the actual costs of the soil correction. The Note
will bear interest at 12% per annum and will mature on
June 1 , 2001. Principal on the Note will be payable when
and if tax increment is available.
E. FINANCIAL ANALYSIS AND THE TIF DISTRICT BUDGET:
Soil Correction s 250,000
Administrative Costs 25,000
TOTAL COST s 275,000
10
1 . Original Gross Tax Capacity and Original Tax Capacity- Rate
The original gross tax capacity of all taxable real property
within the TIF District, based on gross tax capacities
established in 1989 for real estate taxes. to be paid in
1990, is expected to be certified by the County Auditor
as $ Pursuant to Minnesota Statutes, Section
469.1,77, at the time of certification of the original gross
tax capacity of the TIF District, the County auditor will
also certify the original tax capacity rate that applies
to the TIF District. The original tax capacity rate for
the TIF District is the sum of all tax capacity rates that
apply to the property in the TIF District in the calendar
year in which the initial certification or original gross
tax capacity is requested. For the TIF District based
on the tax capacity rates for .1989 the original tax capacity
rate will be
2. Captured Gross Tax Capacity
Each year the gross tax capacity of parcels within the
TIF District will be adjusted to reflect current valuation.
Tax Increment is calculated by extending the lesser of
(i) the local taxing district tax capacity rates or (ii)
the original tax capacity rate, to the captured gross tax
capacity of the TIF District. The estimated dated of completion
of the townhouse units is , and the estimated
captured gross tax capacity at . completion is 5
Pursuant to Minnesota Statutes, Section 469.177, Subd.
2, the City and the HRA hereby determine that they will
use 100% of the captured gross tax capacity of taxable
property located in the TIF District and 100% of the Tax
Increment to be derived from the TIF District for the entire
duration of the TIF District.
11
Duration of the TIF District
In accordance with the TIF Act, the HRA from the
TIF District may continue to receive tax increment
payments for 12 years after, establishment of the
Soils Condition TIF District. It is estimated that
the TIF District duration will be 12 years.
F. ESTIMATED IMPACT OF THE TIF DISTRICT ON OTHER TAXING
JURISDICTIONS
Redevelopment o'f the property located within the TIF
District for housing improvements identified and
discussed in Exhibit B cannot occur but for• the
creation of a tax- increment district and the subsidy to
be used for, soil correction.
Pursuant to Minnesota law, tax increment generated by
development within the TIF Distr•i.ct may only be
captured by the HRA for a period of twelve years after-
establishment of the Soils Condition TIF District.
During this period, other, major, taxing jurisdictions
will continue to receive taxes from the pr•oper•ty within
the TIF District based. on the original assessed value
of the pr•oper•ty, just as if no redevelopment had
occur•r-ed on the proper-ty. Other, taxing jurisdictions
will , ther•efor•e, realize the -same amount of tax revenue
from the pr-oper•ty within the TIF District during the 12
year, duration of the district as they would have if no
development had occur•r•ed on the proper-ty. There will ,
ther•efor•e, be negative impacts on other taxing
jurisdictions as a result of the City's creation of the
TIF District. These . impacts ar•e offset by the public
purpose of pr- -viding redevelopment 'for- housing.
There will , however, be a substantial favorable impact
on other- taxing jurisdictions following termination of
the TIF District in 12 years. Taxes levied on the full
12
value of the land within the TIF District, including
the value of development made possible by creation of
the 1"IF District, will be distributed by the County
Auditor, to all taxing jurisdictions following
termination of the TIF District. The value of the
townhouses made possible by the creation of the TIF
District will contribute significantly to the ta:. base
of all taxing jurisdictions, including the county and
school board. In addition to the increased tax base
within the 'fIF District itself, which will be available
to other, taxing jurisdictions when the TIF District
expires, the redevelopment helps accomplish the goals
of the City, the Twin Cities Metropolitan Council , and
the State of Minnesota.
If Estimated Gross Tax Capacity Available to Taxing Jursidictions
Without Creation of TIF District. The estimated gross tax
capacity would be available to the taxing jurisdictions without
creation of TIF District, each taxing jurisdiction would realize
an increase of $ - in gross tax capacity at completion
of the construction of the townhomes.
If Estimated Gross Tax Capacity Not Available to Taxing Jurisdictions.
If estimated gross tax capacity is not available to taxing
jurisdictions during duration of TIF District, the taxing
jurisdictions will not realize an increase in gross tax capacity
as a result of development of the townhomes until the TIF
District has been terminated, which is not expected to occur
until 2001 .
CONCLUS 1 014:
1 . The proposed district will increase the assessed
value of the major taxing jurisdictions over- the
existing situation in 12 year-s.
13
2. But . for• tax increment financing, the redevelopment
would not occur, because of the poor, soil
conditions.
The studies which have been completed which indicate that
development would not cocur• but for, the use of tax
increment ar-e as follows:
1 . Evergreen Townhouses in St. Anthony Village, June
16, ' 969.
2. Soil Analysis.
G . ADMINISTRATIVE PROCEDURES AND REQUIREMENTS
1 . Modification of the TIF Plan or Change in
Boundaries of the TIF District
Pursuant to Minnesota Statutes, any modification of
this TIF Plan which would: provide for any
reduction or- enlargement of the geographic area of
the TIF District; increase the amount of bonded
indebtedness to be incur-red; increase or, -decrease
the amount of interest on the debt to be
capitalized; increase the portion of captured
assessed value to be retained by the City;
increase the total estimated tax increment
expenditures; or the designation of addi.tional
property to be acquired may only be approved by the
City Council and HRA after- notice to the public,
discussion with the planning commission, the
holding of a public - hearing, and the making of
.findings required for• the approval for- the TIF Plan
itself.
14
The geographic area of the TIF District may be
reduced, but may not be enlarged after five years
following the date -of certification of the original
asssessed value by the County Auditor,.
2. Use of 7a:; I nc remen t
Pursuant to Minnesota Statute, all tax increment
revenues derived from the TIF District shall be
used in accordance with this TIF Flan and shall be
used solely for• the following purposes: a) to pay
the interest on loans or• loans issued to finance
the soil cor•r•ection; and b) to finance the cost of
administration, capitalized interest and issuance
costs.
s. Excess Tax, Increments
Pursuant to Minnesota Statute in any year, in which
the tax increment should exceed the amount
necessary to pay the costs authorized by this TIF
Flan, the HRA shall use the excess amount to do any
of the following, in the or-der, determined by the
HRA:
a. Repay any outstanding Tax Increment Loans;
b. Discharge the pledge of Tax Increment thereof;
C. Fay into an escrow account dedicated to the
payment of such loans; or-
d. Fay administrative expenses allowable pursuant
to Minnesota Statutes Section 469. 176.
15
e. Return the excess amount to the County Auditor,
for- distribution to the City, County and School
District in proportion to their, respective mill
rates.
4. Tax Increment Account
Pursuant to Minnesota Statutes, Section 469. 177,
Subd. 5, the tax increment received as a result of
increases in the gross tax capacity of the property
within the TIF District will be maintained in a
special account or, accounts separate from all other,
municipal accounts and expended ony as provided in
this TIF Flan and as .allowed by the TIF Act.
5. Limitation on Administr-ative Expenses/Count
E::penses
HRA or their, designated agent will be limited to
administrative expenses pursuant to Minnesota
Statutes, Section 469. 176, Subd 3, now in effect
and as amended from time to time. It is the policy
of the Authority to pay to Ramsey County the actual
administrative costs to administer, this district
only.
6. Limitation on Increment
Pursuant to Minnesota Statutes, Section 469.176,
Subd. 6, if, after four- years from the date of
certification of the original assessed value of the
TIF District, no demolition, rehabilitation, oil
r•enovat ion or other- site pr•epar•at ion, including
improvement of a street adjacent to a parcel , but
not installation of utility service including sewer,
16
or- water- systems, has been commenced on a parcel
located within the TIF Distr-ic-t in accordance with
this Flan, no additional tax increment will be
taken from that parcel and the original gross tax
capacity of that parcel will be excluded from the
original gross tax capacity of the TIF District.. If
development of the parcel subsequently commences,
the parcel shall be returned to the TIF District as
provided in Minnesota Statute Section 469. 176,
Subd. 6.
7. Annual Disclosure
The HRA will make the annual disclosures required by
Minnesota Statutes, Section 469.175, subdivision 6.
8. Administr-ation of the TIF District
The HRA designates the St. Anthony City Manager as
agent responsible for- admin.istr•ation of the TIF
District.
9. Fiscal Disparities Election
1-he HRA elects to spread the effects of the fiscal
disparities Act within the District to all
commercial and industrial property in St. Anthony.
The Cash Flow Analysis reflects this election.
17
EXHIBIT A
TAA INCREMENT DISTRICT
FOR
EVERGREEN DEVELOPMENT CORPORATION
Lots 1 , 2, _, 5, b, 7. Block: 4 Mounds View Acres, Second
Add. and Flock: 2, Hounds View Acres, Second Add. and Lot `,,
Block 1 , Vi1lella Add. , all in Ramsey County, Minnesota.
f Ilan Reid CIVIC of
40 Focdham� ST• AN1 oj1
po (fJ h
.��
A � 1
• 1 , ;I 111 40
r �f► 10 [. a !e. r•f
07 1.1 +r 11 11.4 ll !3
r20•f O-V H iy► I •..�_ I Ilo i -��PO 3 ' tVI
:�0 ♦: �r• ,• w . I' ► � r +I r),��" ,4� .e.:.1 J1�•�,•l l�y � Z—.r 1 � / .' 2
`� • 2 iT• O
5 • A' 19 w oc P I` l', •V
co
�_-
,•��� : ' le q i�sl ��•=:« - 'a- ,. { (rllyry/'• ... 3 (•• ° 4!.A!f'1' - -�' --
its -J Z 'G7i r •r 4
y lf" 17 . r r � I lM.� 1 (IGC' T � c.f �f
+• .+ C (48\ I 1 I6 1
4
.s.: Irr) I� NS 4l+ /- •1; ,i 1� •. �t ` ,�� I 6 1 1
15 2 SZ 1 :,. Q
A,&
3I' �r l ) HP� 3;ril: ; oy. •e_- :��_ Y'7 `; �e
XV
14 7
CV P7
at
• :IA;r M ! rL �♦ er 1! ) I 0 PQ�J it r��
,, _ ,
O�0 4(3S1 r l.t . \i • `r /�� _ /t •
` ^ _ (cl: • .•�3'(»1�,sls'�' 2�`V•''\ v P''' (4) `s 121 0 9 f
(� v
10 e er
110 r gas' o
ai n thou
(Villa e
Administrative Offices
3301 Silver Lake Road, St Anthony, Minnesota 55418
(612) 789.8881
July 22 , 1988
St. Anthony School Board
3303 - 33rd Avenue N.E.
St. Anthony, MN 55418
Attention: Dr. Crystal Meriwether
Dear Board Members and Crystal :
On July 12, 1988 , the St. Anthony Housing and Redevelopment
Authority accepted a . soil condition tax increment financing plan
for approximately 9 . 6 acres -located south of Silver Lane and east
of Fordham Drive in St. Anthony, legal description attached.
In the furtherance of better communication, and in accord with
Minnesota statutes, I am transmitting a draft copy of the Tax
Increment Financing Plan to you for your review. A final copy
will be sent within a .few days. We ask for you to review and
comment at your earliest convenience. Should you have any
questions, please call .
�erely
,
E
David M. Childs
Executive Director
St. Anthony Housing and Redevelopment
Authority
DMC:cjk
Enclosure
Roben(Bob) Sundland,Mayor David Childs,City Manager
Councilmembers Richard A Enrooth,Judy Makowske,George Marks,Clarence Ranallo
ai n thou
ZIae
Administrotive O//ices
3301 Silver Lake Road, St. Anthony, Minnesota 55418
(612) 789-8881
July 22 , 1988
Ramsey County Board of Commissioners
Room 286 City Hall-Courthouse
St. Paul , MN 55102
Attention : Terry Schutten
Dear Commissioners and Terry:
On July 12 , 198" - the St: Anthony Housing and Redevelopment
Authority accepte.- a soil condition tax increment financing plan
for approximately 9. 6 acres located south of Silver Lane and east
of Fordham Drive in St. Anthony., legal description attached.
In the furtherance of better communication, . and in accord with
Minnesota statutes, I am transmitting a draft copy of the Tax
Increment .Financing Plan to you for your review. A final copy
will be sent within a few days. We ask for you to review and
comment at your earliest convenience. Should you have any
questions, please call.
cerel ,
AU
David M. Childs
Executive Director
St. Anthony Housing and Redevelopment
Authority
DMC:cjk
Enclosure
Robert(Bob) Sundland.Mayor David Childs.City Manager
Councilmembert Richard A Enrooth,Judy Makowske,George Marlu,.Clarence Ranallo
EXHIBIT B
F-R 1'.'r;T E fl EYELOPMENT PROPOSAL
FLANS AND DEVELOPMENT SCHEDULE
C'11-'r GOPiLS Nt•JD ABJECT l VES
EVERCREE-V DEVELOPMENT CORPORATION
1920 Dain Tower
Minneapolis, MN 55402
(612) 339 -9341
July 7, 1988
Development Advisory Services
7404 Cirard Avenue South
Richfield, MN 55423
Attn: Mr. Richard Krier
Re: Evergreen Townhouses in St. Anthony Village
Dear Mr. Krier,
The recent request for assistance regarding the above referenced
development is predicated on the fact that considerable soil
corrections to the site will be required in order to build the
proposed housing. Such corrections are necessitated by the City's
permitted use of the site .as a loose landfill area over a period
in excess of 20 years.
Our best estimates to date indicate the cost of such corrections
will total $ 327,000 or just over $ 8,800.00 per unit. This is an
amount that would price the proposed units above the marketplace
if it had to be absorbed within the project.
As a result, we ask that you favorably consider our request.
Sincerely, _
:"Stephen J. Yurick
Development Consultant for
Evergreen Development Corporation
cc: Ursula -Sheehy
Vernon Horium
EVERGREEN TOWNHOMES IN ST. ANTHONY
SUMMARY OF TAX INCREMENT FINANCING REQUEST OF JUNE 17, 1988
SUBMITTED BY: EVERGREEN DEVELOPMENT CORPORATION
PROPOSED PROJECT:
TYPE: For Sale Townhomes
37 units, Base units - 1Br + den, 2 Br.
1214 to 1412 Sq. ft. in size for base units-
optional expansion available
PRICE: $ 95,500 average
LOCATION: See preliminary plan
DEVELOPED PLAN: Phased construction based on market acceptance
ASSISTANCE: Request $ 327,000.00 in TIF for soil correction.
Evergreen Development Corporation and its principals
will sign and be responsible for the financial
obligations negotiated as a result of this request.
FINANCING: Privately arranged to encompass appoximately $ 800,000
for use on a revolving basis given phased nature of
development. Publicly assisted through tax increment
financing as outlined above.
DEVELOPMENT TEAM: Presently consists of members experienced in -.the
residential housing disciplines of planning,
architecture, marketing, sales and finance. Currently
negotiating with building contractors having specialized
skills in the townhome construction field to find the
right fit with existing team members, quality and cost
parameters.
SOURCE AND USE
OF FUNDS: Previously submitted .
SILVER LANE
cal
- - r
I �I � i.� � •.11;'1 •�
i
�^ •r '
t•S•o
• PRELIMINARY SITE PLAX
1.=40'0'
Goals and
Policies
Community Goals
The purpose of this Comprehensive Plan is essentially the same as that of
the municipal government itself: to provide a living and working environ-
ment which is safe, orderly, and attractive; to provide needed public ser-
vices, and to allow individual initiative to find fulfillment. Physical
improvements and municipal services are the principal means through which
the City of St. Anthony may move toward its -service goals. Within this
framework, the general goals which the City of St. Anthony should work
towards in the coming years are as follows:
1 . Continue to ensure the public health, safety, and welfare of the com-
munity while maintaining maximum individual choice.
Explanation: The provision of health, safety, and welfare are three
legitimate objectives of municipal government. While working to
further these, individual property rights and freedom of decision must
be respected.
2. Provide a full range of equal opportunity, choice, and accessibility
for each person in their respective living and working environments.
Explanation: Within the broad categories of housing, employment, .goods
and services, transportation, and life-sustaining functions, the
community should ensure that each citizen has equal rights and oppor-
tunity and is protected. The community has an obligation to try to
maintain and improve life for all of its citizens.
3. Complete the process of community development, and encourage orderly
and beneficial redevelopment where needed.
Explanation: The City of St. Anthony has little remaining buildable
land. The remaining development opportunities that do exist will
certainly be encouraged, but as existing development deteriorates or
becomes economically obsolete, it' will need to be rejuvenated through
stabilization, rehabilitation and modernization or be replaced by
newer, more compatible development.
26
4. Maintain a strong community identity.
Explanation: Due to its size and homogenous population, the City of
St. Anthony experiences a sense of identity which is greater than that
found in most neighborhoods of similar size in larger cities. This
attribute is a great benefit to the city's population, for it estab-
lishes a feeling of home and refuge in the larger metropolitan complex.
The existence of an independent school district in St. Anthony
bolsters this community identity and is hi.ghl.y valued by community
residents. Other means of preserving this identity may include the
continuation of retail and service functions which serve the community
and the elimination of land uses which are incompatible with residen-
tial neighbor`.aods.
5. Preserve and enhance a local environment which is safe, orderly, and
productive for all members of the community.
Explanation: The City should provide for the development and main-
tenance of functional land use and structural patterns and the estab-
lishment of an orderly and functional transportation system to serve
and connect but not disrupt various use concentrations. Moveover, the
community should provide and properly maintain those resources, facili-
ties and services essential to the protection of the health, safety,
anc general welfare of the individual and community (water, sewer,
police, and fire protection) and necessary for the improvement of the
individual (schools, parks) .
27
Land Use Goals
Proper goals, policies, and plans for the use of land in a municipality are
useful to the orderly, economic, and efficient development of that com-
munity. land use is the basis and framework for all other physical devel-
opment, including buildings, transportation facilities, and public
utilities such as water and sewer lines. The importance of this aspect of
community planning cannot be overemphasized.
With the overall community development goals in mind, land use policies
must be established to allow a continuation of past trends which are bene-
ficial and to gradually change those aspects which are seen as detrimental .
At this point in its development. process, the City of St. Anthony needs
only to refine its land use policies and plans. The following, then, are
the land use goals of the city.
1 . Maintain and upgrade land use and environmental quality.
Explanation: In order to preserve the vitality and usefulness of each
neighorhood and the community as a whole, steps must be taken to
encourage the rehabilitation of substandard dwelling units as well as
commercial and industrial structures if their particular location is
consistent- with the City's land use policies and plan. Redevelopment
decisions and land use changes should take into account the capacity of
the transportation system, the effect on the municipal tax base and
overall environmental quality.
2. Preserve and protect property values.
Explanation: Proper land use planning can ensure that each of the
various types of use is provided with sufficient amount of land,
adequate access, and a proper environment for its needs. The City of
St. Anthony can work to preserve and enhance the investment of the
individual in his/her land and buildings by ensuring a compatible use
relationship and preventing encroachments which create a negative or
blighting influence. The City of St. Anthony should also seek to halt
deterioration of property which may negatively impact adjacent land
parcel's.
3. Develop or redevelop land parcels so that public and community
Interests are maximized and that negative neighborhood impacts are
minimized.
Explanation: New development should be encouraged which offers maximum
property tax revenue to the City but which does not offset such bene-
fits by creating transportation, land use, aesthetic or public service
problems.
28
4. Continue to develop land use patterns which ensures compatibility and
functional relationships among activities.
Explanation: Some refinement of St. Anthony's land use pattern remains
to be accomplished. This includes encouraging the upgrading and rede-
signing the Kenzie Terrace commercial area, achieving suitable devel-
opment on vacant parcels, and redeveloping land parcels which are not
compatible with their surroundings or which grossly underutiIize their
location. An objective of the land use plan and transportation plan is
to function in harmony with one another.
29
Land Use Policies
1 . Relate land development to community priorities and transportation
system capacities.
2. Analyze each remaining undeveloped land parcel on an individual basis
to define it most appropriate use within the context of the neigh-
borhood in which it is located and the community as a whole.
3. Provide transitional zones or physical buffers between distinctly dif-
ferent and incompatible land use activities.
4. Encourage development which makes the most economic, efficient use of
land and public facilities.
5. Encourage the upgrading or removal of deteriorated or economically
obsolescent residential., commercial , or industrial structures through
private means. Public incentives for development should be utilized
only when necessary. When the rehabilitation of deteriorated struc-
tures is not economically feasible or desirable, the structures should
be removed and a new use developed.
6. Ensure that all new commercial , industrial , or office developments
conform to established standards for setback, lot dimensions, land-
scaping, lighting, screening, parking, and signage.
7. Encourage commercial development and redevelopment in unified, func-
tional patterns rather than in spot or linear patterns.
8. Consolidate, whenever possible, existing spot or linear commercial
development patterns into more unified and functional developments.
9. Ensure that new commercial development or redevelopment complements or
improves existing adjacent development through the use of proper
building design and orientation, shared parking and access, landscaping
and appropriately-scaled signage.
10. Continue to provide or promote pedestrian, bicycle, and transit access
to major retail or service locations.
11 . Adhere to strict standards for the development of commercial and
industrial signage.
12. Allow limited convenience retail and service development with proper
screening, access, lighting, parking design and signage in residential
neighborhoods at nodal points (e.g. intersections of collector or
higher level streets) . . Such new neighborhood convenience centers
shall * be allowed only when there can be shown to be a demonstrable
need for such uses in the proposed location. Pedestrian and bicycle
access shall be provided to such locations.
30
Housing Goals
Since housing is the principal physical element of the City of St.
Anthony, its proper maintenance and continued development is of great
importance. At this point +n the development of the City, few oppor-
tunities remain for significant new housing growth. Housing goals and
policies at this stage are aimed chiefly at maintaining the high quality
of housing and the pleasant neighborhood environment which has been
established in St. Anthony. However, recognition is also given to the
need- for the City to strive to accommodate its fair share of the Region's
demand for housing affordable by families of limited means.
1 . Maintain and upgrade residential neighborhood environments.
Explanation: Quiet, attractive, and safe residential neighborhoods
are one of the hallmarks of St. Anthony. Preserving this asset should
be one of the prime aims of the City.
2. Provide new housing which complements the existing housing stock and
attempts to meet the housing needs of a variety of potential city
residents.
Explanation: In order to ensure some degree of heterogeneity among
the City's population as well as to avoid totally excluding all mem-
bers of some particular segment of the Region's society who may have a
need to live in St. Anthony, a variety of housing types should be
developed in St. Anthony. Although limited opportunties exist for
further residential development, the City should not, through its
Zoning Plan, place excessive restrictions on the ability of the pri-
vate housing market to meet perceived housing needs. However, the
City should actively encourage the development of townhouses,
duplexes, quadraminiums, and apartment buildings so as to be able to
satisfy various housing needs. The use of applicable Federal or State
housing assistance programs by private builders should be also
encouraged by the City. Finally, the development of housing designed
exclusively for the elderly should also be promoted.
31
Housing Policies
1 . Encourage the use of 11planned unite residential zoning for new
multiple-unit residential developments.
2. Ensure that any new multiple-family housing development strives for
achievement of high quality site planning and design.
3. Encourage the use of State or Federal housing rehabilitation funds by
eligible applicants for the stabilization, upgrading, or removal of
residential structures.
4. Encourage the preservation and maintenance of residential structures by
private means whenever possible.
5. Review and revise as necessary municipal land use policies, building
requirements, and development review procedures to ensure that they do
not unnecessarily impede the development of housing affordable to per-
sons of " low- and moderate-income."
6.. Encourage. the development of market-rate housing of medium densities
(5-10 dwelling unit per net acre) when functional and aesthetically
pleasing site plans can be assured. '
7. . Encourage the construction by the private -housing market of residential
structures affordable to individuals of "low- and moderate-income."
8. Encourage developers of medium- and high-density housing to incorporate
into their plans, provisions for dwelling units which will be sub-
sidized by the Federal and/or State Government and, thus, be affordable
to persons of "low- and moderate-income."
9. Develop housing designed specifically for the elderly which offers
publicly subsidized rents and an attractive, supportive, respectable
environment in a location accessible to shopping facilities and public
transit routes.
10. Encourage the development of at least 10 percent of the newly
constructed subsidized dwelling units which have 3 or more bedrooms to
help meet the needs of large families of limited income.
11 . Housing units built or acquired for subsidized rental should not be
readily distinguishable from market-rate housing units.
12. To the extent possible, rent-subsidized housing units should not be
geographically concentrated but should be spread throughout the com-
munity to minimize deleterious effects to those persons assisted and to
32
the City's neighborhoods. (This policy does not apply to housing
designed for the elderly.)
13. Enforce the City Building Code in regard to multiple-family dwellings.
14. Strive to accommodate its share of the metropolitan area's demand for
low- and moderate-cost housing as outlined in the Metropolitan
Council 's 10 Year Community Fair Share Goal for Low and Moderate Income
Housing.
15. Encourage complete insulation and weather i zat ion of all residential
structures in St. Anthony to reduce overall residential energy require-
ments.
16. Encourage residential developers to develop their subdivision site
plans and/or orient building construction to take -maximum advantage of
the passive solar heat gain potential of southern exposures and shall
discourage through the site review process the blockage of another
development's existing solar access.
33
I
Transportation Goals
The efficient movement of people and goods within and across the city is
essential to the full- utilization of all land parcels and to allowing resi-
dents to make use of the services and opportunities the City and the metro-
politan area present. The transportation system of the City of St. Anthony
is fully developed but continued refinements and improvements need to be
made. The following goals for the transportation system are presented.
1 . Continue the development of the transportation system so that all modes
of movement and all age groups are served.
Explanation: Although the automobile will very likely continue to
function as the primary mode of transportation in St. Anthony, provi-
sions should continue to be made to assist the -safe and convenient
movement of bicyclists and. pedestrians. Also, the Metropolitan Transit
Commission (MTC) should be kept advised of what the City perceives as
unmet demand for public transit so that the MTC may upgrade service
periodically.
2. Provide adequate level road service without attracting undesirable
through traffic.
Explanation: Streets such as Silver Lake Road can lose their effec-
tiveness as local movement and access facilities if they begin to carry
too great a load of through traffic. Local and intermediate roads
should not be allowed to be overdesigned, so that they attract traffic
from the larger nearby traffic arteries which were designed to accom-
modate great numbers of inter-municipality vehicle trips.
3. Review the transportation planning process of the Minnesota Department
of Transportation, Metropolitan Council Transportation Division, the
Hennepin County Transportation Department, the Ramsey County Department
of Transportation, and adjacent municipalities in order to protect its
own interests.
Explanation: The transportation needs and desires of the City of St.
Anthony can best be satisfied through effective communication with
those agencies and governmental entities which have an influence over
the design of certain elements of the City's roadway system.
34
Transportation Policies
1. Consider the mobility needs of all persons, especially senior citizens,
children, and the handicapped, in the continued, development of the
transportation system.
2. Plan transportation facilities to serve the access and volume needs of
-adjacent and nearby land uses.
3. Continue the development of the pedestrian and bicycle system.
4. Prepare and annually update a Capitol Improvements Program for the
upgrading and maintenance of the roadway system.
.5. Ensure that alternatives in the design of the arterial road system are
compatible with the system of local streets and pedestrian and bicycle
routes.
6. Establish proper access points to concentrations of residential ,
retail , .service, office, or industrial development.
7. Provide for early and continuing citizen involvement in the transpor-
tation planning process.
8. Install traffic controls and/or redesigned roadways and intersections
as necessary and financially feasible to minimize traffic movement -on
local streets through residential neighborhoods.
35
f
Public Facilities/Services Goals
1. Emphasize economy and efficiency in all aspects of public facilities
and services:
Explanation: The public demand for efficiency in government is not
just desirable but necessary in St. Anthony due to the City's limited
tax base and fiscal limitations.
2. Coordinate facilities and services on a joint basis between governmen-
tal units.
Explanation: In order to more efficiently utilize and conserve scarce
land resources and eliminate costly duplication of facilities and ser-
vices, it is becoming increasingly important for city and county
governments, school districts and metropolitan governmental units to
work together to maximize the benefits of various faci-lities and ser-
vices to all the residents of this area. On the community level the
City should work with the school district to coordinate the provision
of recreationa . facilities (amongst other things) and the programming
of recreational activities. Relative to adjacent suburban communities
and the metropolitan area as a whole, facilities and services such as
parks and open space areas, libraries, and public utilities should be
planned and developed on a coordinated basis.
3,. Through sound management and budget practices, enhance the City's
fiscal health.
Explanation: Limited resources and rising costs make careful budgeting,
fiscal planning, and spending essential . A Capital Improvements
Program which outlines expected City income, needed expenditures for
public physical improvements, and potential funding sources is one
Important tool which may be utilized by the City to help provide for
continued financial stability.
4. Restrict the increase in municipal costs to no more than the rate of
Inflation of the general . economy or less, if at all possible.
Explanation: Costs of government at all levels is coming under greater
scrutiny and criticism. Efforts should be made to keep the government
of the City of St. Anthony as streamlined as possible while still deli-
vering necessary and desirable services. Over-dependence on State and
Federal aid for basic local needs should be avoided, lest cutbacks in
such assistance jeopardize their delivery and suddenly. increase pro-
perty taxes and user fees.
36
H.R.A. RESOLUTION 1989-004
A RESOLUTION APPROVING CONVEYANCE OF PROPERTY
TO THE EVERGREEN DEVELOPMENT CORPORATION AND
AUTHORIZING THE CHAIR, ACTING EXECUTIVE DIRECTOR AND
SECRETARY TO SIGN A DEED
BE IT RESOLVED, that the St. Anthony Housing and Redevelopment
Authority hereby approves the conveyance of property to the
Evergreen Development Corporation and authorizes the Chair,
Acting Executive Director and Secretary to sign the
appropriate deed.
• Adopted this day of 1989.
Chair
Acting Executive Director
Secretary
•