2017-06-27 HRA Agenda PacketPLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS.
AGENDA
MOUND HOUSING & REDEVELOPMENT AUTHORITY
REGULAR MEETING
1• JUNE 279 2017 6:55 P.M.
MOUND CITY COUNCIL -CHAMBERS
Page
1. Opening the meeting
2. Action approving agenda, with any amendments
3. Action approving minutes: May 23, 2017 regular meeting 1-2
4. Action on a resolution approving the renaming of Indian Knoll 3
Manor to Balsam Hill Apartments and Townhomes
5. Action on a resolution approving the declaration amendment between 4-18
IKM Limited Partnership, LLC and Minnehaha Creek Watershed
District
6. Adjourn
Note: No HRA meeting was held on June 13, 2017 due to lack of agenda items.
May 23, 2017
The Mound Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met in
regular session on Tuesday, May 23, 2017, at 6:45 p.m. in the council chambers of the Centennial
Building.
Members present: Chair Mark Wegscheid, Commissioners Ray Salazar, Jeff Bergquist, Kelli Gillispie,
and Jennifer Peterson
Members absent: none
Others present: City Manager and Director of Public Works Eric Hoversten, Director of Finance and
Administrative Services Catherine Pausche, Community Development Director Sarah Smith,
Administrative Assistant Mary Mackres, and Field Officer Stewart Simon, Roger Fink, James Lehnhoff,
Quinn Pausche, Clinton and Emily Suisse, and Nicole Brodzik
1. Open meeting
Chair Mark Wegscheid called the meeting to order at 6:45 p.m.
2. Approve agenda
Hoversten noted on Items 4-6, James Lehnhoff will be presenting instead of Stacie Kvilvang.
MOTION by Salazar, seconded by Gillispie, to approve the agenda as amended. All voted in favor.
Motion carried.
3. Approve minutes
MOTION by Salazar, seconded by Bergquist, to approve the minutes of the April 11, 2017
regular meeting. All voted in favor. Motion carried.
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James Lehnhoff from Ehlers and Associates, addressed the HRA by saying there are three actions
facilitating the proposed Harrison Bay housing project which need to be approved separately.
Lehnhoff said these actions are still contingent upon a public hearing and approval at the City
Council meeting tonight.
Lehnhoff stated the first action is the proposed resolution to modify the redevelopment plan for the
Mound Harbor Project Area and then establish the Harrison Bay Senior Housing TIF District.
Lehnhoff added the first part expands the existing Mound Harbor project to the north to include
three parcels that aren't currently in that project area. Lehnhoff said the resolution also creates the
new housing TIF district with a maximum term of up to 26 years which includes an affordability
requirement. Lehnhoff said this means 20% of the apartments must be affordable to households
with incomes at or below 50% of area median income.
Lehnhoff said the Planning Commission reviewed the TIF plan on May 2 and recommended
approval and noted that the City has completed all notification requirements under state statutes.
Ehlers and the City's legal counsel have also reviewed and found the plan to be in conformance
with state statutes.
MOTION by Salazar, seconded by Gillispie to approve the resolution. All voted in favor. Motion
carried.
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HRA Minutes- May 23, 2017
5. Action to approve Resolution Authorizing an Interfund Loan for Advance of Certain Costs in
Connection with the Harrison Bay Senior Living Housing Tax Increment Financing District
Lehnhoff presented information regarding the interfund loan and said due to the creation of the TIF
District, it is expected that the developer will always reimburse the City for the cost of creating that
district. Lehnhoff added that if any costs are incurred between now and when increments start to
be received, or there are unexpected costs related to administration items, this resolution allows the
HRA to be reimbursed for those costs. Lehnhoff said this approval protects the City and allows
those costs to be reimbursed up to $10,000 and with an interest rate of 4%.
Motion by Salazar, seconded by Gillispie to approve the resolution. All voted in favor. Motion
carried.
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•I • • ' ' • •
6. Stacie Kvilvang from Ehlers requesting action on a resolution approving a Contract for
Private Development with Harrison Bay Senior Living LLC for the construction of a 72 -unit
senior rental facillfir, contingent upon City Council approval of establishment of the TIF
District
Lehnhoff presented information regarding the contract for private development which details what
exactly will happen with the project. Lehnhoff stated the Harrison Bay project is for 72 units, with
20% of those units remaining affordable to keep the TIF district intact. Lehnhoff added the subsidy
for affordability would be provided for 15 years, with the amount of financial assistance to go no
higher than $930,000 which will be reimbursed through the pay-as-you-go TIF during the first 10
years. Lehnhoff added the development agreement contains the stipulation that the project must
start no later than 12/31/17. Lehnhoff spoke with the developer who says they anticipate starting in
6-8 weeks and the project is expected to be completed within a year.
Gillispie asked when the project would be complete. Lehnhoff said the developer expects the
project to be complete in one year, but the development agreement says the project must finished
by the end of 2019.
MOTION by Salazar, seconded by Peterson to approve resolution. All voted in favor. Motion
carried.
RESOLUTION O. 17-OBH: RESOLUTION APPROVING CONTRACT FOR PRIVATE
DEVELOPMENT WITH HARRISON BAY SENIOR LIVING, LLC
7. Adjourn
MOTION by Peterson, seconded by Bergquist, to adjourn at 6:55 p.m. All voted in favor.
Motion carried.
IN
Attest: Catherine Pausche, Clerk
Chair Mark Wegscheid
MOUND HOUSING AND REDEVELOPMENTAUTHORITY
RESOLUTION NO.
r • •
WHEREAS, the Mound Housing and Redevelopment Authority of Mound, Minnesota (the
"HRA") entered into a purchase agreement and sold its 50 -unit low rent public housing project
known as Indian Knoll Manor (the "Project') to Aeon, a non-profit developer and operator of
affordable housing and its tax credit limited partnership, IKM Limited Partnership; and
WHEREAS, the HRA has executed a loan agreement with Aeon and its tax credit limited
partnership that will ensure that the agreed upon improvements to the Project will be made and
the Project will remain affordable; and
WHEREAS, Aeon and its tax credit limited partnership have requested to rename the Project
Balsam Hill Apartments and Townhomes for branding and marketing purposes;
NOW THEREFORE, BE IT RESOLVE®, by the Board of the Mound Housing and
Redevelopment Authority that the renaming of Indian Knoll Manor to Balsam Hill Apartments
and Townhomes is hereby approved.
Adopted by the HRA this 27th day of June 27, 2017.
Attest: Catherine Pausche, Clerk
-3-
Chair Mark Wegscheid
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO. 17- H
RESOLUTION APPROVING THE DECLARATION AMENDMENT BETWEEN
IKM LIMITED PARTNERSHIP, LLC AND MINNEHAHA CREEK WATERSHER
DISTRICT
WHEREAS, the Mound Housing and Redevelopment Authority of Mound, Minnesota (the
"HRA") entered into a purchase agreement and sold its 50 -unit low rent public housing project
formerly known as Indian Knoll Manor (the "Project") to Aeon, a non-profit developer and
operator of affordable housing and its tax credit limited partnership, IKM Limited Partnership;
and
WHEREAS, the HRA has executed a loan agreement with Aeon and its tax credit limited
partnership that will ensure that the agreed upon improvements to the Project will be made and
the Project will remain affordable; and
WHEREAS, Aeon and its tax credit limited partnership have made changes to their approach for
storm water management on the site prompting the need to amend the agreement with the
Minnehaha Creek Watershed District (MCWD); and
WHEREAS, Staff has reviewed the changes and agrees with the revised approach;
NOW THEREFORE, BE IT RESOLVED, by the Board of the Mound Housing and
Redevelopment Authority that the Board Chair and Executive Director are hereby authorized to
approve the Declaration Amendment between the IKM Limited Partnership, LLC and the
Minnehaha Creek Watershed District as shown in Exhibit A and made a part herein.
Adopted by the HRA this 27th day of June 27, 2017.
Attest: Catherine Pausche, Clerk
me
Chair Mark Wegscheid
Exhibit A Page 1
This Declaration Amendment ("Amendment") is made this day of June, 2017, by IKM
Limited Partnership, a Minnesota limited partnership ("Declarant"), and accepted by the Minnehaha
Creek Watershed District ("MCWD"), a special purpose local unit of government with purposes and
powers pursuant to Minnesota Statutes chapters 103B and 103D.
WHEREAS Declarant owns real property within the City of Mound, Hennepin County,
Minnesota, platted and legally described as:
Lot 1, Block 1, Indian Knoll Manor, Hennepin County, Minnesota
(the "Property") and no one other than Declarant has any right, title or interest in the Property; and
WHEREAS the Property constitutes the entirety of the land to which MCWD permit #16-244
applies; and
WHEREAS, in fulfillment of a condition of approval of permit # 16-244, Declarant recorded a
declaration committing to performance of certain affirmative maintenance requirements for stormwater
facilities on the Property filed and recorded on the Property in the Office of the County Recorder,
Hennepin County, Minnesota on December 14, 2016, as Document number A 103 91047 (the
"Declaration"); and
WHEREAS the attachment to the Declaration showing the stormwater facilities did not reflect
the installed stormwater facilities and as such must be corrected, and Declarant and MCWD wish to
correct the Declaration.
WHEREAS the Declaration referred to an Attachment C which was not provided and should not
be considered part of the Declaration and as such must be corrected, and Declarant and MCWD wish to
correct the Declaration.
NOW, THEREFORE, Declarant makes and MCWD accepts this amendment and hereby
declare that the Declaration, as amended, constitutes covenants to run with the Property in perpetuity,
IRE
Exhibit A Page ( 2
and further declares that the Property shall be owned, used, occupied and conveyed subject to the
covenants, restrictions, easements, charges and liens set forth in the Declaration, as amended, all of
which shall be binding on all persons owning or acquiring any right, title or interest in the Property, and
their heirs, successors, personal representatives and assigns.
A. Attachment A. The site plan attachment to the Declaration is deleted in its entirety and is
replaced with Attachment A to this amendment.
B. Attachment B. The Maintenance Plan & Schedule is deleted in its entirety and is replaced with
Attachment B to this amendment.
C. Prior Declaration Amended. The Declaration is deemed amended on the filing of this
amendment for recordation with the Office of the County Recorder, Hennepin County,
Minnesota.
D. Recitals. The recitals set forth above are expressly incorporated herein.
[Signature Pages Follow]
5411
Exhibit A Page ( 3
IN WITNESS WHEREOF, the undersigned has executed this instrument the day and year first
set forth.
IKM LIMITED PARTNERSHIP
Fed. I.D. #81-0962531
By: Aeon
Its: Managing General Partner
Its:
STATE OF MINNESOTA )
ss.
COUNTY OF HENNEPIN )
This instrument was acknowledged before me on June _, 2017 by Caroline Horton, the Chief
Financial Officer of Aeon, a Minnesota non-profit corporation, the Managing General Partner of IKM
Limited Partnership, a Minnesota limited partnership, on behalf of the limited liability company and
limited partnership.
Notary Public
-7-
Exhibit A Page 14
Minnehaha Creek Watershed District accepts and consents to the Amendment:
By Lars Erdahl
Its Administrator
STATE OF MINNESOTA )
ss.
COUNTY OF HENNEPIN )
This instrument was acknowledged before me on June _, 2017 by Lars Erdahl, as administrator of the
Minnehaha Creek Watershed District, a special purpose local unit of government.
This Instrument Was Drafted By:
Faegre Baker Daniels LLP (AMC)
2200 Wells Fargo Center
90 South Seventh Street
Minneapolis, MN 55402
(612) 766-7000
Notary Public
ME
Exhibit A Page ( 5
Wells Fargo Bank, National Association, a national banking association, the holder of a
mortgage dated December 13, 2016, filed for record with the County Recorder of Hennepin County,
Minnesota on December 14, 2016 as Document No. A10391048, hereby consents to the recording of the
attached Declaration and agrees that its rights in the property affected by the Declaration shall be
subordinated thereto.
IN WITNESS WHEREOF, the undersigned lender has caused this Consent and Subordination
to be executed this day of June, 2017.
WELLS FARGO BANK, NATIONAL
ASSOCIATION
a national banking association
IS
STATE OF MINNESOTA )
ss
COUNTY OF HENNEPIN )
Rochelle Dotzenrod
Its Vice President
The foregoing instrument was acknowledged before me this day of June, 2017, by Rochelle
Dotzenrod, the Vice President of Wells Fargo Bank, National Association, a national banking
association, on behalf of the national banking association.
Notary Public
-9-
Exhibit A Page ( 6
Housing and Redevelopment Authority of the City of Mound, Minnesota, a public body
corporate and politic organized under the laws of the State of Minnesota, the holder of a mortgage dated
December 12, 2016, filed for record with the County Recorder of Hennepin County, Minnesota on
December 14, 2016 as Document No. A10391049, hereby consents to the recording of the attached
Declaration and agrees that its rights in the property affected by the Declaration shall be subordinated
thereto.
IN WITNESS WHEREOF, the undersigned lender has caused this Consent and Subordination
to be executed this day of June, 2017.
HOUSING AND REDEVELOPMENT
AUTHORITY OF THE CITY OF MOUND,
MINNESOTA, a public body corporate and politic
organized under the laws of the State of Minnesota
Name:
Its: Executive Director
Name:
Its: Chair
STATE OF MINNESOTA )
ss
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of June, 2017, by
and 'the Executive Director and Chair of the Housing
and Redevelopment Authority of the City of Mound, Minnesota, a public body corporate and politic
organized under the laws of the State of Minnesota, on behalf of the public body corporate and politic.
Notary Public
®1
Exhibit A Page 17
City of Mound, a Minnesota municipal corporation, the holder of a mortgage dated December 12,
2016, filed for record with the County Recorder of Hennepin County, Minnesota on December 14, 2016 as
Document No. A10391057, hereby consents to the recording of the attached Declaration and agrees that its
rights in the property affected by the Declaration shall be subordinated thereto.
IN WITNESS WHEREOF, the undersigned lender has caused this Consent and Subordination
to be executed this day of June, 2017.
CITY OF MOUND, a Minnesota municipal
corporation
wo
STATE OF MINNESOTA )
ss
COUNTY OF HENNEPIN )
Name: _
Its: Mayor
Name:
Its: City Manager
The foregoing instrument was acknowledged before me this day of June, 2017, by
and , the Mayor and Chief Manager of the City of
Mound, a Minnesota municipal corporation, on behalf of the municipal corporation.
Notary Public
mm
Exhibit A Page 18
CONSENT AND SUBORDINATION
Aeon, a Minnesota non-profit corporation, the holder of a mortgage dated December 12, 2016,
filed for record with the County Recorder of Hennepin County, Minnesota on December 14, 2016 as Document
No. A10391055, hereby consents to the recording of the attached Declaration and agrees that its rights in
the property affected by the Declaration shall be subordinated thereto.
IN WITNESS WHEREOF, the undersigned lender has caused this Consent and Subordination
to be executed this day of June, 2017.
AEON, a Minnesota non-profit corporation
IC
STATE OF MINNESOTA )
) ss
COUNTY OF HENNEPIN )
Caroline Horton
Its Chief Financial Officer
The foregoing instrument was acknowledged before me this day of June, 2017, by Caroline
Horton, the Chief Financial Officer of Aeon, a Minnesota non-profit corporation, on behalf of the
nonprofit corporation.
Notary Public
-12-
Exhibit A Page ( 9
Hennepin County, a public body corporate and politic under the laws of the State of Minnesota, on behalf
of the Hennepin Housing Consortium, the holder of a mortgage dated December 12, 2016, filed for record with
the County Recorder of Hennepin County, Minnesota on December 14, 2016 as Document No. A10391051,
hereby consents to the recording of the attached Declaration and agrees that its rights in the property affected by
the Declaration shall be subordinated thereto.
IN WITNESS WHEREOF, the undersigned lender has caused this Consent and Subordination to be
executed this day of June, 2017.
HENNEPIN COUNTY, a public body corporate and politic
under the laws of the State of Minnesota, on behalf of the
Hennepin Housing Consortium
Assistant County Attorney Chair of its County Board
Date:
Attest:
Deputy/Clerk of the County Board
an
STATE OF MINNESOTA )
) ss.
COUNTY OF HENNEPIN )
County Administrator
The foregoing instrument was acknowledged before me this day of June, 2017 by
, the Chair of the County Board, and the
Deputy/Clerk of the County Board, and , the County Administrator of the County
of Hennepin, State of Minnesota, on behalf of the Hennepin Housing Consortium.
Notary Public
*9010 ILYA 103 0 41 1j XQ '
Assistant County Administrator, Public Works
Date:
Director, Community Works
Date:
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Exhibit A Page 14
ATTACHMENT B
1. STORMWATER FACILITIES
a. Underground storage facilities. Underground storage facilities will be inspected
at least annually to ensure continuing performance per design. Capacity will be
considered inadequate if sediment has decreased the storage volume by 50 percent
of the original design volume. Accumulated debris and sediment will be
removed, and inlet and outlet structures will be kept clear of any flow
impediments.
b. Filtration Cartridges. Filter cartridges should be monitored two times per year.
Cartridges should be replaced every two years. The Vault should be cleaned out
and/or vacuumed every two years.
c. Raingardens, infiltration basins and filtration basins. Raingardens, infiltration
basins and filtration basins will be inspected annually to ensure continued live
storage capacity at or above the design volume. Invasive vegetation, excess
sediment and debris will be removed as needed and healthy plant growth will be
maintained to ensure that the facilities continue to perform per design.
d. Vegetated swales. Vegetated swales will remain free from mowing or other
vegetative disturbance, fertilizer application, yard or other waste disposal, the
placement of structures or any other alteration that impedes the function of the
vegetated swale.
e. Reporting. The Declarant will submit to the MCWD annually a brief written
report that describes stormwater facility maintenance activities performed under
this declaration, including dates, locations of inspections and the maintenance
activities performed.
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