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2016-06-14 HRA Agenda PacketPLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS. MOUND HOUSING & REDEVELOPMENT AUTHORITY REGULAR MEETING TUESDAY, JUNE 14, 2016 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 24, 2016 regular meeting I 4. Action approving payment of claims 2-6 5. Action on a resolution authorizing the execution and delivery of a 7-17 management agreement with Aeon rA k povj-,� 6. Catherine Pausche, Director of Finance and Administrative Services, 18-35 and Sarah Smith, Community Development Director, requesting discussion on Tax Increment Financing (TIF) policy 7. Adjourn MOM The Mound Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met in regular session on Tuesday, May 24, 2016, at 6:55 p.m. in the council chambers of the Centennial Building. Members present: Chair Mark Wegscheid, Kelli Gillispie, Heidi Gesch, and Jennifer Peterson Members absent: Ray Salazar Others present: City Manager and Public Works Director Eric Hoversten, Community Development Director Sarah Smith, Planner Rita Trapp, Administrative Assistant Mary Mackres, Alex Teplitski, Max Teplitski, Don Woytcke, Sandi Woytcke, Arvin Senne, Linda Senne, Alexandra Teplitski, Rich Hirstein, Mike Otto, Lynda Smith, Joannie Meehan, Deb Gatz, Joe Simons, John Simons Public Present: 1. Open meeting Chair Mark Wegscheid called the meeting to order at 6:55 p.m. 2. Approve agenda MOTION by Gesch, seconded by Gillispie, to approve the agenda. All voted in favor. Motion carried. 3. Action approving minutes: May 10, 2016 regular meeting MOTION by Gesch, seconded by Gillispie, to approve minutes from May 10, 2016 regular meeting. All voted in favor. Motion carried 4. Approve claims MOTION by Gesch, seconded by Gillispie, to approve the claims in the amount of $8,972.92. All voted in favor. Motion carried. 5. Action on a resolution approving the first amendment to the significant amendment to the PHA Plan. Hoversten explained that this is merely an amendment to the plan that recognizes Mound's intended participation with the rental assistance program and its transfer to Aeon as well as a reduction in the number of RAD funded units. MOTION by Gillispie, seconded by Gesch, to approve the resolution. All voted in favor. Motion carried. RESOLUTION NO. 16-05H: RESOLUTION APPROVING THE FIRST AMENDMENT TO THE SIGNIFICANT AMENDMENT TO THE PHA PLAN. 6. Adjourn MOTION by Gesch, seconded by Gillispie, to adjourn at 6:58 p.m. All voted in favor. Motion carried. Chair Mark Wegscheid Attest: Catherine Pausche, Clerk -1- Folow., 11 Oki YEAR BATCH NAME AMOUNT 2016 060116HRAMAN $7,626.87 2016 061416COMBND $2,939.96 2016 061416HRA $3,802.60 TOTAL CLAIMS $14,1369.43 in CITY OF MOUND 06/02/16 11:26 AM Page 1 Payments Current Period: June 2016 Batch Name 060116HRAMAN User Dollar Amt $7,626.87 Payments Computer Dollar Amt $7,626.87 $0.00 In Balance Refer_ 1 CENTERPOINT ENERGY (MINNEG _ Cash Payment _ E 680-49800-383 Gas Utilities GAS SERVICE 5-19-16 THRU 6-21-16 IKM $1,041.00 Invoice 060116 5/20/2016 Transaction Date 6/1/2016 Wells Fargo HRA 10120 Total $1,041.00 Refer 7 MOUND, CITY OF Cash Payment E 680-49800-382 Water Utilities WATER SVC 4-1-16 THRU 5-2-16 IKM $2,417.09 Invoice 060116 6/1/2016 Transaction Date 6/1/2016 Wells Fargo HRA 10120 Total $2,417.09 Refer 5 MULTIHOUSING CREDIT CONTRO Cash Payment E 680-49800-475 Tenant Related Services PROSPECTIVE IKM TENANT BACKGROUND $11.00 CHECKS APRIL 2016 Invoice 16040341 4/30/2016 Cash Payment E 680-49800-475 Tenant Related Services PROSPECTIVE IKM TENANT BACKGROUND $35.00 CHECKS MARCH 2016 Invoice 16030331 3/31/2016 Transaction Date 6/1/2016 Wells Fargo HRA 10120 Total $46.00 Refer---,-- 10 NS/1 HORWITZ MECHANICAL CON Cash Payment E 680-49800-401 Building Repairs REPLACEMENT OF ELECTRODES & $1,090.00 DESCALING OF 2 WATER HEATERS @ IKM 4- 18 THRU 5-12; FLUSHED SYSTEM, FOUND LEAKS, FACTORY WILL SUPPLY 2 NEW HEATERS Invoice W37793 5/25/2016 Transaction Date 6/2/2016 Wells Fargo HRA 10120 Total $1,090.00 Refer 4 OFFICE DEPOT - IKM _ _ _ Cash Payment E 680-49800-200 Office Supplies COPY PAPER, ELECTRONIC HAND $75.85 LABELER, AAA BATTERIES- IKM Invoice 840406769001 5/19/2016 Transaction Date 6/1/2016 Wells Fargo HRA 10120 Total $75.85 Referw 9 PRIME PROPERTY SVCS, INC. Cash Payment E 680-49800-440 Other Contractual Servic MAY 2016 TWICE WEEKLY CLEANING- IKM $729.17 Invoice 47 5/25/2016 Transaction Date 6/1/2016 Wells Fargo HRA 10120 Total $729.17 Refer 2 REALPAGE, INC Cash Payment E 680-49800-475 Tenant Related Services APRIL 2016 CALL CENTER MTCE PLAN & $143.00 ROLL OVER PHONE NUMBER IKM Invoice 11604015021 4/19/2016 Transaction Date 6/1/2016 Wells Fargo NRA 10120 Total $143.00 Refer 6 REPUBLIC SERVICES Cash Payment E 680-49800-384 Refuse/Garbage Disposa GARBAGE SVC MAY 2016 IKM $278.38 Invoice 0894-004074023 4/25/2016 Transaction Date 6/1/2016 Wells Fargo HRA 10120 Total $278.38 Refer 3 SIMPLEX GRINNELL -3- 0002n011�aAM �������� MOUND Page Payments Current period: June 2016 Cash Payment EO8O498nV-440Other Contractual Gervic FIRE ALARM, SPRINKLER, EXTINGUISHER, s1.183.00 EMERGENCY LITESTEST &INSPECTION GVC/KM Invoice 78538266 4/27/2010 Transaction Date 01/2016 Wells Fargo HRA 10120 Tota/ $1.183,00 Refer 11G0Vp�7�/�TNEN/3PAp£J7CYTY _ Cash Payment E#8D4880V-351 Legal Notices Publishing PUBLIC HEARING NOTICE '}KNSITE $69.38 DEVELOPMENT PLANS- AEON PROJECT Invoice 355996 5/202016 Transaction Date 6/2/2016 Wells Fargo HRA 10120 Total $89.39 Roha, 8THY83fN4RUPPELEVATOR COR _ Cash Payment s6DO'4900044VOther Contractual Oemiu ELEVATOR KTCEO-1-1OTHRUO'31'1O|0N $553.99 Invoice 3002591316 0/1/2016 Transaction Date 0/1/2016 Wells Fargo HRA 10120 Total $553.99 Fund Summary 10120 Wells Fargo HRA GO0HRA PUBLIC HOUSING $7.620.87 Pre -Written Checks $0.00 Checks tohoGenerated hythe Computer *7,626.87 Total $7.626.87 ME CITY OF MOUND 06/09/16 9:39 AM Page 1 Payments Current Period: June 2016 Batch Name 061416COMBND User Dollar Amt $2,939.96 Payments Computer Dollar Amt $2,939.96 $0.00 In Balance Refer 6 COMMON BOND COMMUNITIES Cash Payment E 680-49800-111 Other IKM Maint PR 6-10-16 MTCE SALARY Invoice 1768025 6/10/2016 Cash Payment E 680-49800-130 Employer Paid Ins (GEN PR 6-10-16 MTCE ER TAX, HEALTH INS & 401 K $1,051.82 $257.90 Invoice 1768027 6/10/2016 Cash Payment E 680-49800-111 Other IKM Maint PR 5-27-16 MTCE SALARY $934.20 Invoice 1760167 6/10/2016 Cash Payment E 680-49800-130 Employer Paid Ins (GEN PR 5-27-16 MTCE ER TAX, HEALTH INS & $243.46 401 K Invoice 1760169 6/10/2016 Cash Payment E 680-49800-331 Use of personal auto MTCE MILEAGE 2-18-16 $30.02 Invoice 1761142 5/31/2016 Cash Payment E 680-49800-151 Worker s Comp Insuranc WORKERS COMP MARCH 2016 $110.88 Invoice 1767008 6/8/2016 Cash Payment E 680-49800-151 Worker s Comp Insuranc WORKERS COMP APRIL & MAY 2016 $242.16 Invoice 1767009 6/8/2016 Cash Payment E 680-49800-307 Admin/Finance/Compute HAS FEES WELLS FARGO 5-16 $4.96 Invoice 1767010 6/8/2016 Transaction Date 6/9/2016 Wells Fargo HRA 10120 Total $2,875.40 Refer 60 COMMON BOND COMMUNITIES Cash Payment E 680-49800-307 Admin/Finance/Compute BENEFITS CONSULTING 2-16 $16.14 Invoice 1756229 5/17/2016 Cash Payment E 680-49800-307 Admin/Finance/Compute BENEFITS CONSULTING 3-16 $16.14 Invoice 1756230 5/17/2016 Cash Payment E 680-49800-307 Admin/Finance/Compute BENEFITS CONSULTING 4-16 $16.14 Invoice 1756231 5/17/2016 Cash Payment E 680-49800-307 Admin/Finance/Compute BENEFITS CONSULTING 5-16 $16.14 Invoice 1756232 5/17/2016 Transaction Date 6/9/2016 Wells Fargo HRA 10120 Total $64.56 Fund Summary 10120 Wells Fargo HRA 680 HRA PUBLIC HOUSING $2,939.96 $2,939.96 Pre -Written Checks $0.00 Checks to be Generated by the Computer $2,939.96 Total $2,939.96 in CITY OF MOUND 06/09/16 11:18 AM Page 1 Payments Current Period: June 2016 Batch Name 061416HRA User Dollar Amt $3,802.60 Payments Computer Dollar Amt $3,802.60 $0.00 In Balance Refer 1 HAMERNICK DECORATING COMP Cash Payment E 680-49800-402 Building Maintenance INSTALL KITCHEN VINYL FLOORING UNIT $415.70 #200 MATERIALS & LABOR Invoice CG603796 3/31/2016 Cash Payment E 680-49800-402 Building Maintenance INSTALL CARPET- GLUE DIRECT- TAKE UP $850.54 OLD, INSTALL VINYL BASE UNIT #305 IKM Invoice CG602983 3/16/2016 Transaction Date 6/17/2015 Wells Fargo HRA 10120 Total $1,266.24 Refer 3 SCRUB N SHINE Cash Payment E 680-49800-210 Operating Supplies AIR ODOR CONTROL SYSTEM SCENTED $164.74 REFILL CARTRIDGES- IKM Invoice 412 5/25/2016 Transaction Date 6/8/2016 Wells Fargo HRA 10120 Total $164.74 Refer 2 WARNERS OUTDOOR SOLUTIONS Cash Payment E 680-49800-440 Other Contractual Servic SPRING CLEANUP- MOWING SVC- IKM 4-15- $337.50 16 Invoice 104857 4/30/2016 Cash Payment E 680-49800-440 Other Contractual Servic EXTERIOR SWEEPING- 4-19-16 IKM $157.00 Invoice 104857 4/30/2016 Transaction Date 7/20/2015 Wells Fargo HRA 10120 Total $494.50 Refer 4 XCEL ENERGY _ Cash Payment E 680-49800-381 Electric Utilities ELECTRIC SVC 4-25-16 THRU 5-24-16 IKM $1,877.12 Invoice 502936017 5/26/2016 Transaction Date 6/8/2016 Wells Fargo HRA 10120 Total $1,877.12 Fund Summary 10120 Wells Fargo HRA 680 HRA PUBLIC HOUSING $3,802.60 $3,802.60 Pre -Written Checks $0.00 Checks to be Generated by the Computer $3,802.60 Total $3,802.60 01 MOUND •USING AND REDEVELOPMENT AUTHORITY RESOLUTION NO. RESOLUTION AUTHORIZING THE EXECUTION AND DELIVERY OF A MANAGEMENT AGREEMENT WITH AEON WHEREAS, the Mound Housing and Redevelopment Authority of Mound, Minnesota (the "HRA") owns and operates a 50 -unit low rent public housing project known as Indian Knoll Manor (the "Project") in the city of Mound; and WHEREAS, the City of Mound Housing and Redevelopment Authority has chosen Aeon as a development partner for Indian Knoll Manor Public Housing because of Aeon's successful experience financing, developing, rehabilitating, constructing, and owning similar projects; and WHEREAS, the HRR has requested the Aeon (the "Agent") to manage the Project pursuant to Minnesota Statutes, Section 471.59, which provides that local governmental units may by agreement jointly or cooperatively exercise any powers common to them; and WHEREAS, the HRA proposes to enter into a management agreement with the Agent pursuant to which the Agent will manage the Project; and WHEREAS, the Board of Commissioners has been fully informed as to the nature and content of the proposed management agreement. NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Mound Housing and Redevelopment Authority, that the Chair and Executive Director of the HRA are authorized and directed to execute and deliver, on behalf of the HRA, a management agreement with the Agent as presented in Exhibit A and made a part herein. Adopted by the HRA this 14th day of June, 2016. Attest: Catherine Pausche, Clerk N Chair Mark Wegscheid Exhibit A Page I of 10 MANAGEMENT AGREEMENT BETWEEN MOUND HOUSING AND REDEVELOPMENT AUTHORIT AND AEON THIS AGREEMENT, made by and between Mound Housing and Redevelopment Authority ("'Owner"') with offices at Indian Knoll Manor, 2020 Commerce Boulevard, Mound, Minnesota 55364, and at City Hall, 2415 Wilshire Boulevard, Mound, Minnesota, 55364 and Aeon, a Minnesota non- profit company ("Agent") with offices at 901 N. Third Street, Suite #150, Minneapolis, Minnesota 55401. WHEREAS, the Housing and Redevelopment Authority of Mound, Mound, MN, (HRA) entered into a Consolidated Annual Contributions Contract (ACC) No. C-858, Parts A and B, on January 25, 1996, with the U.S. Department of Housing and Urban Development (HUD), as amended, which provides ongoing funding for the maintenance and operation of the HRA's public housing projects; and WHEREAS, under Section 5 of Part A of the ACC, the HRA shall develop and operate all projects covered by the ACC in compliance with all the provisions of the ACC and all applicable statutes, executive orders, and regulations issued by HUD, as they shall be amended from time to time, including but not limited to, those regulations promulgated by HUD at Title 24 of the Code of Federal Regulations (CFR), which are hereby incorporated herein by reference as if fully set forth herein; and WHEREAS, under Section 5 of Part A of the ACC, the HRA shall ensure compliance with such requirements by any contractor or subcontractor engaged in the development or operation of a project covered by this ACC; In consideration of the covenants herein contained, the parties hereto agree as follows: 1. Appointment. The Owner hereby appoints the Agent, and the Agent hereby accepts appointment, on the terms and conditions hereinafter provided, as the Owner's exclusive agent to manage, and operate the 50 -unit apartment building located in Mound, Minnesota, commonly known as Indian Knoll Apartments, ("Premises"). 2. Renewal. The term of the Agreement shall be month to month beginning July 1, 2016 unless terminated as provided in sections 3 and 9. 3. Termination By Either Party. This Agreement may be terminated by either party during its term by the giving of written notice to the other party 30 days prior to such termination. ME Exhibit A Page of 10 4. Responsibilities of Agent. The Owner agrees to give the Agent the following authority and powers (all or any of which may be exercised in the name of the Owner) and the Owner agrees to assume all expenses in connection therewith. To prepare a management plan with the Owner that includes an operating budget and an on-site staffing analysis along with recommendations, for approval by Owner; To cause to be hired, paid and supervised all persons necessary to be employed in order to properly maintain and operate the Premises who, in each instance, shall be the Agent's and not the Owner's employees, and cause to be discharged all persons unnecessary or undesirable; To cause the Premises to be maintained in such condition as may be deemed advisable by the Owner, and cause routine repairs and incidental alterations of the building to be made, including, but not limited to, electrical, plumbing, heating, carpentry, masonry and any other routine repairs and incidental alterations as may be required in the course of ordinary maintenance and care of the Premises. Subject to the requirements of Minnesota Statutes 469.015 and Mound PHA procurement policy, repairs or alterations involving an expenditure in excess of One Thousand Five Hundred Dollars ($1,500) for any one item shall be made only with the prior approval of the Owner, except that emergency repairs, i.e., those immediately necessary for the preservation of safety of the Premises or for the safety of the Residents of the Premises or other persons, or required to avoid the suspension of any necessary service in or to the Premises may be made by the Agent irrespective of the cost thereof, without the prior approval of the Owner if the Agent makes a reasonable attempt to communicate with the Owner in order to obtain such approval; To recommend, and with the approval of the Owner, cause all such acts and things to be done in or about the Premises as may be necessary or desirable to comply with any and all orders or notice of violations affecting the Premises placed thereon by any federal, state, county or municipal authority having jurisdiction thereover, except that if failure promptly to comply with any such order or violation would expose the Owner or the Agent to criminal liability, the Agent may cause such order or notice of violation to be complied with or without the prior approval of the Owner if the Agent makes a reasonable attempt to communicate with the Owner to obtain such approval, it being understood that the Agent shall notify the Owner promptly after receipt of any order or notice of violation, as foresaid; Subject to the requirements of Minnesota Statute 469.015, the Mound PHA Procurement Policy, and the HUD Capital Funds Program (CFP), to enter into all necessary or desirable service contracts in respect to the in Exhibit A Page 3 of 10 repair and operation of the Premises, including without limitation contracts for electricity, gas, air conditioning, equipment maintenance, water treatment, janitorial, landscaping, window cleaning, rubbish removal, fuel oil, back-up of fuel oil; vermin extermination, architects` and engineers" services required for the planning and supervision of alterations and/or improvements made or proposed to be made to the Premises, but any such contract having a term longer than one (1) year or requiring an annual payment in excess of One Thousand Five Hundred Dollars ($1,500) must be authorized by the Owner in advance via email; Subject to the requirements of Minnesota Statute 469.015 and of the Mound PHA Procurement Policy, to purchase all supplies which shall be necessary to properly maintain and operate the Premises, and credit to the Owner any discounts or commissions obtained for purchase, to conduct solicitation of bids, preparation of bid packages, advertisement of bids, and tabulation of bids; To check all bills received for services, work and supplies ordered in connection with maintaining and operating the Premises and pay or cause all such bills to be paid, upon authorization and signature of the Owner, from funds of the Owner; Insurance coverage for the premises is to be determined by the HRA, such insurance to be obtained and/or maintained, by and at the expense of the Owner; To cause all employees of the Agent who handle or are responsible for safekeeping of any money of the Owner to obtain a criminal background check, in addition to all employees or personnel on contract who have access to residents units per state law; To bill, or cause to be billed, residents for monthly rent and to send late notices according to the Rent Collection Policy, to collect and deposit those rents and produce the necessary reports for tracking tenant receivables, including deposits and miscellaneous revenues; To assist the Owner in maintaining a system of accounts to which shall be entered fully and accurately each and every financial transaction with respect to the operation of the Premises. To submit purchase orders, when required, and invoices on a timely and accurate basis to the Owner, and any reports relating to budget and capital expenditures as requested by the Owner; To keep the Owner informed on a monthly basis of the financial status and physical condition of the Premises and other items that Owner should reasonably be made aware of; -10- Exhibit A Page of 10 To assist Owner, when requested, to prepare and file all necessary forms relating to the maintenance and operation of the Premises required by any federal, state, county or municipal authority having jurisdiction thereover; To maintain, at the Mound HRA office located on 2020 Commerce Boulevard, Mound, Minnesota, orderly files containing records for income and expenses, , leases, correspondence, receipted bills and vouchers and all other documents and papers pertaining to the Premises and the operation and maintenance thereof, the same to be and at all times to remain the property of the Owner, and the Agent shall upon request of the Owner make same available to the Owner, and the Owner's accountants and attorneys; To provide the necessary information to and cooperate with the Owner's accountants and auditors in regard to the annual audit or any periodic audit of the books; To cooperate with Owner's accountants in regard to the preparation and filing on behalf of federal, state, city and any other filings required by any governmental authority; To assist Owner in doing all things reasonably deemed necessary or desirable for the proper management of the Premises according to HUD regulations for Low Rent Public Housing (LRPH) programs, including maintaining all records and reporting to HUD; To perform, for the Owner's account and on its behalf, any lawful act and everything lawful and necessary or desirable in order to carry out the Agent's Agreements contained in this Agreement. It is expressly understood and agreed that everything done by the Agent under the provisions of this Agreement shall be done as Agent of the Owner, and any and all obligations, costs or expenses incurred by the Agent in the performance of its obligations under this Agreement shall be borne by the Owner and not by the Agent. It being expressly understood, however, that the monthly management fee compensates the Agent for (i) the costs incurred by the Agent in maintaining its own office staff, and (ii) its general overhead. Any payments made by the Agent hereunder shall be made out of such funds as the Agent may from time to time hold for the accounts of the Owner or as may be provided by the Owner. The Agent shall not be obligated to make any advance to, or for the account of, the Owner or pay any amount except out of funds held or provided aforesaid nor shall the Agent be obliged to incur any extraordinary liability or obligation unless the Owner shall furnish the Agent with the necessary funds for the discharge thereof. If Agent shall elect to advance any money in connection with the property the Owner agrees to reimburse the Agent forthwith and hereby authorizes the Agent to deduct such advances from any money due the Owner. -11- Exhibit A Page S_ of 10 S. Responsibilities of Owner. The Owner agrees to be solely responsible for all electronic data filing in PIC, LOCCS, REAC, EIV and other electronic systems as required by HUD, and to create and submit the PHA Plan annually and complete all reporting as necessary; 6. Banking. All funds of the property in the possession of the Agent shall be held by the Agent for the Owner, in trust, and shall be deposited by Agent in such bank, as the Owner shall designate, in a special account maintained by theOwner, for the premises. Such funds shall not be commingled with other funds collected by the Agent for its own account or as agent for others, or with the Agent's own funds and shall remain on deposit until disbursed in accordance with the terms of the agreement. The Owner shall directly receive all statements issued by the Bank with respect to such bank account and will provide a copy to the Agent in a timely manner, upon request. 7. Compensation. The Owner agrees to pay the Agent, during the term of this Agreement each month an amount equal to $55.00 per unit per month; Owner will reimburse Agent for time and expenses incurred by an on- site resident manager and a maintenance person for services (all Agent's employees) provided to Owner at Indian Knoll Manor, according to a budget pre -approved by Owner. S. Indemnity. The Owner shall indemnify, defend and save the Agent harmless from and against all claims, losses, costs and liabilities arising out of damage to property, or injury to, or death of persons (including the property and persons of the parties hereto, and their agents, subcontractors and employees) occasioned by or in connection with the use, management operation, ownership, maintenance or control of the Premises; except as to such claims, losses, costs, and liabilities that are the direct result of willful misconduct or negligence of Agent or its officers, agents, subcontractors or employees. 9. Termination. Within 30 (thirty) days of termination of the Agreement, the parties shall account to each other with respect to all uncompleted business as follows: (i) the Agent shall deliver to the Owner all funds and other moneys, and all leases, subleases, corporate files, books, records and other instruments relating to the Premises and the Owner, that may be in the possession of the Agent; and (ii) the Agent shall concurrently take payment of all fees required to be paid hereunder through the date of termination of the Agreement by deducting same from all funds and money otherwise transferred to the Owner under this paragraph. -12- Exhibit A Page of 10 10. Assignment. The Agent may not assign this Agreement without the prior written consent of the Board of Commissioners. Subject to the provisions hereof, all of the covenants, conditions and obligations contained in this Agreement shall be binding and to the benefit of the respective successors and assignors of the Owner and the Agent to the same extent as if each successor and assignor were in each case named as a party to this Agreement. 11. Severability. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforced to the fullest extent permitted by law. 12. Applicable Law. This agreement shall be construed and enforced in accordance with the laws of the State of Minnesota. 13. Notices. All notices, demands, requests or other communications which may be or are required to be given, served or sent by either party to the other, shall be in writing and delivered personally or by certified mail, return receipt requested, with postage prepaid, at the address first above mentioned. A party may change the name or address for the giving of notice provided above by written notice to the other party. 14. Entire Agreement. This agreement and the documents to which reference in it has been made, shall be construed together and constitute the entire, full and complete agreement between the Owner and the Agent, and there are no representations, inducements, promises, or agreements, oral or otherwise, between the parties not embodied herein, which are of any force or effect. 15. Modifications. This Agreement may not be changed or modified except by written document signed by both the Owner and the Agent. 16. Workers Compensation Insurance. This Agreement shall not become effective until Agent has provided Owner written evidence that Agent complies with all applicable worker compensation insurance requirements. 17. Relationship of Agent to Owner. The relationship of the parties to this Agreement shall be that of Principal and Agent, and all duties to be performed by Agent under this Agreement shall be for and on behalf of Owner, in Owner's name, and for Owner's account. In taking any action under this Agreement, Agent shall be acting only as Agent for Owner, and nothing in this Agreement shall be construed as -13- Exhibit A Page of 10 creating a partnership, joint venture, or any other relationship between the parties to this Agreement except that of Principal and Agent, or as requiring Agent to bear any portion of losses arising out of or connected with the ownership or operation of the Premises. Nor shall Agent at any time during the period of this Agreement be considered a direct employee of Owner. Neither party shall have the power to bind or obligate the other except as expressly set forth in this Agreement, except that Agent is authorized to act with such additional authority and power as may be necessary to carry out the spirit and intent of this Agreement. 18. Save Harmless. Except as to the willful misconduct or negligence of Agent, Owner shall indemnify, defend, and save Agent harmless from all loss, damage, cost, expense (including attorney's fees), liability, or claims for personal injury or property damage incurred or occurring in, on or about the Premises. Agent shall indemnify, defend and save Owner harmless in the same manner based on the willful misconduct on negligence of Agent. 19. Liability Insurance. Owner shall obtain and keep in force adequate insurance against physical damage (e.g. fire with extended coverage endorsement, boiler and machinery, etc.) and against liability for loss, damage, or injury to property or persons that might arise out of the occupancy, management, operation, or maintenance of the Premises. The amounts and types of insurance shall be acceptable to both Owner and Agent, and any deductible required under such insurance policies shall be Owner's expense. Agent shall be covered as an additional insured on all liability insurance maintained with respect to the Premises. Liability insurance shall be adequate to protect the interests of both Owner and Agent and in form, substance, and amounts reasonably satisfactory to Agent, Owner agrees to furnish Agent with certificates evidencing such insurance or with duplicate copies of such policies within three business days of the execution of the Agreement. If Owner fails to do so, Agent may, but shall not be obliged to, place said insurance and charge the cost thereof to the Operating (and/or) Reserve Account(s). 20. Agent Assumes No Liability. Agent assumes no liability whatsoever for any acts or omissions of Owner, or any previous Owner of the Premises, or any previous management or other agent of either. Agent assumes no liability for any failure of or default by a tenant in the payment of any rent or other charges due Owner or in the performance of any obligations owed by any tenant to Owner pursuant to any lease or otherwise, nor does Agent assume any liability for previously unknown violations of environmental or other regulations which may become known during the period this Agreement is in effect. Any such regulatory violations or hazards discovered by Agent -14- Exhibit A Page q of 10 shall be brought to the attention of the Owner in writing, and Owner shall promptly cure them. 21. Equal Employment Opportunities. During the performance of this contract, Aeon agrees as follows: a. Aeon will not discriminate against any employee or applicant for employment because of race, color, religion, sex, or national origin. b. Aeon will cause the foregoing provision to be inserted in all subcontractors for any work covered by this contract so that such provisions will be binding upon each subcontractor, provide that the foregoing provision shall not apply to contractors or subcontractors for standard commercial supplies or raw materials. 22. HUD Rules and Regulations. In the management of Indian Knoll Manor, Agent shall comply with rules and regulations established by United States Department of Housing and Urban Development (HUD) and other appropriate government agencies. Owner, with assistance from Agent, will be responsible for ensuring any admissions or lease enforcement actions are in compliance with the Mound HRA Admissions and Continued Occupancy Policy (ACOP). Agent shall comply with all applicable requirements of the General Conditions for Non -Construction Contracts and Davis Bacon Laws. Agent shall require compliance with said requirements by all subcontractors engaged to assist the Agent for any subcontract in excess of two thousand dollars ($2,000). Owner is responsible for monitoring Agent's compliance. Non-compliance by Agent and its subcontractors will result in findings of non-performance under the Management Agreement and shall be grounds for termination. Any finding of non-compliance in underpayment of wages and benefits shall be an expense from Agent's compensation. Nothing contained in this Management Agreement shall prohibit or limit the Owner from the exercise of any other right or remedy existing under applicable law or available at equity. TheOwner's exercise or non -exercise of any right or remedy under this Management Agreement shall not be construed as a waiver of theOwner's right to exercise that or any other right or remedy at any time. Agent shall provide all normal public housing related management functions, including yearly inspections of all units and building common area's, annual income reviews and rent calculations, maintaining a waiting list in accordance with the HRA Occupancy Policies, admission, evictions, and any housing sm Exhibit A Page I of 10 management related functions. Owner shall be responsible for updating 50058 information in PIC and monitoring information in EIV. Agent shall prepare a monthly report on the management of Indian Knoll Manor for the HRA Executive Director, summarizing occupancy rates, accounts receivable status, and any pertinent issues Owner should be aware of. A representative of Agent shall attend HRA Board meetings upon request. Agent shall prepare and submit a report to the HRA Board within 30 days of any HUD REAC inspection that includes any deficiency issues. The report will include any causes and a plan to correct the deficiencies. Agent shall encourage the formation of a Resident Council and ensure that its representative attends the monthly Resident Council Meeting. Agent shall work with the Resident Council as necessary for the efficient and amicable operation of Indian Knoll Manor. Owner, with assistance from Agent, shall maintain records on-site and off- site in accordance with HUD and state records maintenance/disposition requirements. I N Exhibit A Page of 10 IN WITNESS WHEREOF, the parties hereto intending to be legally bound hereby, have executed this Agreement of the day and year first above written. By: Mark Wegscheid Its: BOARD CHAIR Date: Eric Hoversten Its: EXECUTIVE DIRECTOR Date: AGENT: Aeon By: Its: Date: -17- _nA Date: June 9, 2016 To: HRA Board Chair and Commissioners From: Catherine Pausche, Director of Finance and Administrative Services Sarah Smith, Community Development Director Subject: Discussion on Proposed TIF Policy & Application Tax Increment Financing, or'TIF', has been around for 40 years and is an economic development tool that helps cities preserve and grow their local economies, which in turn contributes to the economic health and vitality of the state. Cities and authorities (e.g., housing and redevelopment authorities) are authorized to create TIF districts which are governed by state statute and must be approved by the county and school district. Included in the packet is an excerpt from the League of Minnesota Cities Handbook for Minnesota Cities Chapter 15 which contains information on TIF and tax abatement. The primary emphasis on determining whether TIF is needed to spur development is the "but -for" test, which says the project develops a substandard or blighted area on sites which would not otherwise be developed "but/for" the use of TIF. Redevelopment TIF districts differ from housing TIF districts. There is less regulation involved with a housing TIF district, which exists to encourage development of affordable housing. To qualify for a housing TIF district, at least 20% of the units must be occupied by individuals with 50% of median income, or 40% of the units occupied by individuals with 60% of median income. The City of Mound has three redevelopment TIF districts, including TIF 1-1 Commerce Place, which was decertified in 2009 after 24 years and repayment of the debt. TIF 1-2 Metroplains was created to develop Mound Market Place and Village by the Bay which will decertify in 2026. TIF 1-3 Mound Harbor Renaissance was created to develop Lost Lake and the Harbor District and decertifies in 2031. The City uses the tax increment to repay debt service on bonds that were issued for these developments. When the TIF district decertifies, the debt is satisfied and the tax capacity of the City increases. Although it is impossible to anticipate all of the scenarios and projects that will result in a request for a subsidy, recent trends suggest rental housing is leading the economic recovery and the market study completed in 2013 suggested Mound has limited capacity to support commercial and industrial development. Mound needs to be positioned to promote and support development and ensure resources are being spent on projects that bring long-term benefits to the community, not just in the way of increased tax capacity, but also in the services and amenities businesses and residents desire. so TIF Policy Page 2 It is anticipated that the City and HRA will receive requests for either TIF or tax abatement in the near future, so staff has drafted a TIF Policy and Application to help guide the decision making process on whether or not to grant TIF or some other form of public subsidy. It should be noted that the applicants are required to pay for the legal and financial consulting fees involved with creating a TIF district, which is estimated to range from $10,000 - $25,000. An article on the City of Shakopee granting a housing TIF has been provided as additional background. Please let Catherine or Sarah know if you have any questions or would like any additional information to be prepared to aid in the discussion. Staff is requesting the HRA to recommend approval of the proposed policy and application format to the City Council. M City ei Approves -Senior Housing Facility The City of Shakopee will provide tax reimbursement assistance totaling $1 million for up to 26 years. Shakopee, 14N By LISA BAUMANN (Open Post) June 7, 2012 3:57 pm ET A new 80 -unit senior rental housing facility will be constructed next to the campus, thanks to a plan approved by the at its regular meeting June 5. The council approved a Tax Increment Financing (TIF) plan and Contract for Private Development (CPD) for the All Saints Senior Living, LLC senior housing project. The council also, acting in its capacity as the Economic Development Authority EDA, approved the TIF plan, CPD, and issuance of the TIF note for the project. The assistance will allow Trident L.L.C. to construct an approximately 84,000 square foot, senior rental housing facility that will be managed by Tealwood Management. The facility will be located on three acres at Independence Drive south of County Hwy 16 and adjacent to the SACS campus. When the facility opens in 2013-2014, it will offer independent living, assisted living and memory support units. Through the TIF plan, the City of Shakopee will provide tax reimbursement assistance totaling $1 million for up to 26 years. Under the plan, at least 20 percent (16) of the 80 units would have to be available to individuals with incomes at or below 50 percent of the median income in Scott County in order for All Saints to receive the tax reimbursement in a given year. "As a growing community, we have to address the needs of all of our residents from infants to seniors," said Mayor Brad Tabke. "The All Saints Living senior housing project allows us to incent development in the city that also provides lower income senior citizens with an affordable housing option." W �,/ © HANDBOOK FOR MINNESOTA CITIES LEAGUE OF Chapter 15 MINNESOTA CITIESCommunity Redevelopment Community Development and Redevelopment..........................................................................................................1 Chapter15..................................................................................................................................................................3 Community Development and Redevelopment..........................................................................................................3 I. Business subsidies or financial assistance.....................................................................................................3 A. Business subsidies.........................................................................................................................................3 B. Financial assistance.......................................................................................................................................4 Il. City development tools..................................................................................................................................5 A. General city development powers.................................................................................................................5 B. Housing and redevelopment authorities........................................................................................................5 1. Elements of an HRA..................................................................................................................................5 2. Area of operation for an HRA...................................................................................................................6 3. HRA membership......................................................................................................................................6 4. HRA powers..............................................................................................................................................7 5. HRA special assessment and levy authority..............................................................................................7 6. HRA contracting........................................................................................................................................8 7. HRA financing...........................................................................................................................................8 8. HRA certifications to state........................................................................................................................9 9. HRA federal certification..........................................................................................................................9 C. Economic development authorities...............................................................................................................9 1. EDA levies...............................................................................................................................................10 2. EDA loans...............................................................................................................................................10 3. Other EDA powers..................................................................................................................................10 D. Port authorities............................................................................................................................................11 E. Municipal or area redevelopment agencies.................................................................................................12 F. City development districts...........................................................................................................................12 G. City industrial development........................................................................................................................13 III. Other development strategies......................................................................................................................13 A. Housing bonds.............................................................................................................................................13 B. Industrial parks............................................................................................................................................14 This material is provided as general information and is not a substitute for legal advice. Consult your attorney for advice concerning specific situations. 145 University Ave. West W%��j :.org 11/12/2015 Saint Paul, MN 55103-2044 (651) 281-12vfr� (800) 925-1122 © 2015 All Rights Reserved C. Industrial revenue bonds..............................................................................................................................14 D. Commercial rehabilitation...........................................................................................................................15 E. Tax increment financing (TIF)....................................................................................................................15 F. Property tax abatement................................................................................................................................18 IV. State-sponsored development tools.............................................................................................................18 A. Minnesota Housing Finance Agency...........................................................................................................18 B. Department of Employment and Economic Development (DEED)............................................................19 C. Enterprise Minnesota...................................................................................................................................20 D. Corporations................................................................................................................................................21 V. Federal development tools...........................................................................................................................21 A. Community development block grants........................................................................................................21 B. Rural development grants............................................................................................................................21 VI. How this chapter applies to home rule charter cities .......................... League of Minnesota Cities Handbook for Minnesota Cities 11/12/2015 Community Development and Redevelopment -22- Chapter 15 1 Page 2 RELEVANT LINKS: Minn. stat. § 469.156. A city may issue industrial revenue bonds, also known as municipal revenue bonds, without public referendum. It cannot pledge the full faith Minn. stat. § 469.162. and credit of a community as security for these bonds. Thus, the city may not tax property owners to pay principal and interest on the bonds. For more information, If a city decides to investigate the use of industrial bond financing, it contact DEED 651.259.7114, 800.6573858. Main office: should contact the Department of Employment and Economic 1st National Bank Building Development. The department provides the city with information, advice, 332 Minnesota Street, Suite E200 Saint Paul, MN 55101- and technical assistance. This assistance is important, due to the adoption 1351, of federal and state laws allocating issuance authority among the states and their political subdivisions. The commissioner of Securities must approve the project. Minn. stat. § 469.184. Cities have authority to carry out programs for the rehabilitation of small - and medium-sized commercial buildings. The city must adopt a program ordinance that provides for the adoption of program regulations, including a definition of small- and medium-sized commercial buildings. Loans under the program may be for amounts up to $200,000. The city may finance the program through the sale of revenue bonds. EMSEWSIM Minn. stat. §§ 469.174 to Tax increment financing authority is available to most cities. Cities with 469.1794. housing and redevelopment authorities, economic development authorities, port authorities, redevelopment agencies, those cities administering development districts or development projects, or cities exercising port authority powers under a general or special law may use tax increment financing. Amendments to the law, however, may make the use of this development tool more complicated. Tax increment financing is a funding technique that takes advantage of the increases in tax capacity and property taxes from development or redevelopment to pay upfront public development or redevelopment costs. The difference in the tax capacity and the tax revenues the property generates after new construction has occurred, compared with the tax capacity and tax revenues it generated before the construction, is the captured value. The taxes paid on the captured value are called "increments." Unlike property taxes, increments are not used to pay for the general costs of cities, counties, and schools. Instead, increments go to the development authority and are used to repay public indebtedness or current costs the city incurred in acquiring the property, removing existing structures or installing public services. League of Minnesota Cities Handbook for Minnesota Cities _23- 11/12/2015 Community Development and Redevelopment Chapter 15 1 Page 15 RELEVANT LINKS: Thus, the property owner in a TIF district continues to pay the full amount of property taxes. TIF involves only the increased property taxes generated within the district. It does not change the amount of property taxes currently derived from the redevelopment area, nor does it directly affect the amount or rate of general ad valorem taxes the city levies. The result of a TIF project is an increased tax base that will benefit all local taxing jurisdictions. Additionally, TIF districts usually spur economic development and redevelopment through creating jobs, removing blight, and providing more affordable housing. Minn. Stat. § 469.177, subd. Amendments to TIF law in 2012, address changes caused by the market I. value exclusion program. If the market value of a homestead property within a TIF district reduces the homestead market value in the district, the original tax capacity of the TIF district will be reduced by the same amount. Thus, the tax increment collected by the city will remain the same. If your Minn. Stat. § 469.1771, The state auditor may audit TIF districts. If the state auditor notifies a TIF subds. 1, 26. authority of an alleged violation, a copy of the notice is also forwarded to the county attorney. If no'corrective action is brought within one year, the county attorney must notify the state auditor, who then notifies the attorney general. League of Minnesota Cities Handbook for Minnesota Cities 11/12/2015 Community Development and Redevelopment -24- Chapter 15 1 Page 16 city has a TIF district with townhouses or condominiums, you may want to verify that valuations are properly adjusted by the county auditor. See Minn. stat. § 469.174. TIF is used to encourage four general types of private development: redevelopment, renovation and renewal, growth in low- to moderate - income housing, and economic development. Public financing using TIF State v. Wicklund, 589 funding for a privately owned facility does not make public space in the N.w.2d 793 (Minn. 1999). facility a public forum for free speech purposes. Minn. Stat. § 469.176, subd. In some specific situations, a TIF authority may request inclusion in a tax 7. increment financing district and the county auditor may certify the original tax capacity of a parcel or a part of the following property types: • Agricultural. • Private outdoor recreational, open space and park land. • Rural preserve property. • Metropolitan agricultural preserves. Minn. Stat. § 469.175, subds. The city using TIF must report annually to the state auditor as to the status 5, b. of the TIF district or districts and publish the report in a newspaper of general circulation in the municipality. The state auditor has established a uniform system of accounting and financial reporting for TIF districts. The city must annually submit to the state auditor a financial report in compliance with these standards. Minn. Stat. § 469.1771, The state auditor may audit TIF districts. If the state auditor notifies a TIF subds. 1, 26. authority of an alleged violation, a copy of the notice is also forwarded to the county attorney. If no'corrective action is brought within one year, the county attorney must notify the state auditor, who then notifies the attorney general. League of Minnesota Cities Handbook for Minnesota Cities 11/12/2015 Community Development and Redevelopment -24- Chapter 15 1 Page 16 RELEVANT LINKS: Malser Auto sales, Inc. v. Cities should use extreme care in establishing a TIF district and should City ojRichfield, 635 N.W.2d 391 (Minn. Ct. App. 2001); follow all procedural requirements; otherwise, a court may find the district affd, 644 N.W.2d 425 was not properly established. In one case, a TIF district was not properly (Minn. 2002). established where minimal effort was made to ensure the thorough inspection of the properties, inaccurate methodology was used to establish the condition of the buildings, and the buildings found structurally substandard were not reasonably distributed throughout the district. Chenoweth v. City gfNew In another case, a cause of action for inverse condemnation does not arise Brighton, 655 N.W.2d 821 (Minn. Ct. App. 2003). where a city's involvement with an adjacent property owner's development consists of establishing a TIF district, entering into a contract with a private developer specifying the size and value of structures to be built, and providing for substantial city assistance to facilitate development. Given the complexity of the laws governing the use of TIF, cities or HRAs should not undertake this method of financing community development projects without the advice of an attorney and professional consultants. League of Minnesota Cities Handbook for Minnesota Cities -25- 11/12/2015 Community Development and Redevelopment Chapter 15 1 Page 17 If the attorney general finds a substantial violation, the attorney general will petition the state tax court to suspend the authority's power to use TIF for a period of up to five years. Minn. Stat. § 469.177, subd. The TIF agreement with the developer is a complex document. Assistance 8. Lake Superior Payer Indus. v. State, 624 N.W.2d from a financial advisor and the city attorney is necessary in order to 254 (Minn. 2001). Brookfield anticipate the many potential problems. An agreement can establish a Trade Center, Inc. v. County gfRanuey, 609 N.W.2d 868 minimum market value for tax increment assessment purposes, as well as (Minn. 1998). provide that the developer pay a certain level of taxes regardless of any classification rate changes or levy decreases. The agreement should be entered into before the assembly and acquisition of the land on which the completed improvements are to be located. Minn. stat. § 469.1771. The law imposes a 180 -day statute of limitations on actions to challenge the creation or modification of a TIF district. The law is complex including a "but -for" finding before a city approves a TIF plan and the creation of a TIF district. Cities must follow statutory requirements including but not limited to administrative expenses, plan modifications, reporting requirements, use of increment in pre -1979 districts, excess increments, pooling, decertification, and use of funds outside the district. Minn. Stat. § 469.175. Before a district can be created, the law requires a detailed estimate of the impact of a proposed district on city -provided services, such as police and fire protection, public infrastructure, and borrowing costs attributable to the district, in addition to other complex estimations that must be prepared. Malser Auto sales, Inc. v. Cities should use extreme care in establishing a TIF district and should City ojRichfield, 635 N.W.2d 391 (Minn. Ct. App. 2001); follow all procedural requirements; otherwise, a court may find the district affd, 644 N.W.2d 425 was not properly established. In one case, a TIF district was not properly (Minn. 2002). established where minimal effort was made to ensure the thorough inspection of the properties, inaccurate methodology was used to establish the condition of the buildings, and the buildings found structurally substandard were not reasonably distributed throughout the district. Chenoweth v. City gfNew In another case, a cause of action for inverse condemnation does not arise Brighton, 655 N.W.2d 821 (Minn. Ct. App. 2003). where a city's involvement with an adjacent property owner's development consists of establishing a TIF district, entering into a contract with a private developer specifying the size and value of structures to be built, and providing for substantial city assistance to facilitate development. Given the complexity of the laws governing the use of TIF, cities or HRAs should not undertake this method of financing community development projects without the advice of an attorney and professional consultants. League of Minnesota Cities Handbook for Minnesota Cities -25- 11/12/2015 Community Development and Redevelopment Chapter 15 1 Page 17 RELEVANT LINKS: Minn. Stat. §§ 469.1812 to 469.1815. Minn. Stat. § 469.1813 Minn. Stat, cb. 462A. For more information about MHFA programs, contact MHFA at 400 Sibley Street Suite 300, St. Paul, MN 55101-1998 (651)296-7608 or (800) 657-3769. A city may use this development tool to segregate some or all of the taxes (or the increase in taxes) it imposes on a parcel of property if the city expects the benefits of the proposed abatement agreement at least to equal the costs of the proposed development. The term "abatement" is somewhat misleading, as in most cases the tax is not forgiven; it is paid normally, but the amount of property tax levied by the city is used to pay for the bonds. The city must determine that the agreement is in the public interest because it will increase or preserve tax base, provide employment opportunities, provide or help acquire or construct public facilities, help redevelop or renew blighted areas, or help provide access to services for residents of the city. Property taxes in a TIF district cannot be abated unless the period of the abatement will not occur until after the district is decertified. A resolution must be adopted after notice and public hearing, specifying the terms of the abatement. A city may issue bonds or other obligations to provide an amount equal to the sum of the abatements granted for a specific property. The maximum principal amount of these bonds may not exceed the estimated sum of the abatements for the property for the years authorized. The bonds may be general obligations of the city if the city council chooses to pledge the full faith and credit of the city in the resolution issuing the bonds. The law limits property tax abatements to 15 years. School districts and counties have similar abatement powers. A city, county, and school district can agree to abate their taxes on the same property. The goals of the Minnesota Housing Finance Agency (MHFA) are to provide decent, affordable housing to low- and moderate -income people; preserve the existing housing stock in Minnesota; preserve existing neighborhoods and prevent them from deteriorating; and prevent mortgage foreclosures while promoting energy conservation in residential housing. The Minnesota Legislature created the MHFA in response to a shortage of affordable housing for low- and moderate -income people. Private enterprise and private investment were unable, without public assistance, to provide an adequate supply of safe, sanitary, and decent housing at affordable prices and rents. League of Minnesota Cities Handbook for Minnesota Cities_211/12/2015 6_ Community Development and Redevelopment V Chapter 15 1 Page 18 ADMIN POLICY -TAX INCREMENT FINANCING Original Adoption: _J_j_ Reviewed/Updated: Reference No. ADMIN- Purpose and Scope - This policy is intended for situations where the Housing and Redevelopment Authority of and for the City of Mound ("HRA") has been asked to provide Tax Increment Financing ("TIF") or other public subsidy for a proposed development project in the community. The HRA will consider the following list of economic development goals and objectives when evaluating requests for TIF or other public subsidy for a potential development or redevelopment project in Mound: 1. The project must be consistent with community values and vision as described in the Mound Comprehensive Plan and demonstrate the proper balance of type of use supported by market studies and/or other economic indicators. 2. The project must contribute to the economic vitality of the community, provide employment opportunities and ultimately expand the tax base. 3. The project will attract or retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits through a. Diversification of the local economy b. Providing a high number of full time permanent jobs at good wages c. Providing jobs to persons who are currently unemployed or underemployed 4. The project promotes development of mixed-use areas with housing, retail, office, entertainment and institutional uses adding significantly to the City's commercial and industrial tax base. Project area should encompass "natural" boundaries to ensure proper aesthetics and avoidance of remnant properties. 5. The project provides significant rehabilitation of an existing apartment complex or significant rehabilitation and/or expansion of an existing office or commercial facility. 6. The project encourages a mixture of housing types for all stages of life and income levels, including affordable housing units, and adds to and/or complements the existing housing stock with regard to unit mix and sizes. ME 7. The project develops a substandard or blighted area of Mound on sites which would not otherwise be developed but/for the use of TIF. (Statutory Reference). TIF is used to offset increased costs of redevelopment (i.e. contaminated site clean-up) over and above the costs normally incurred in development. 8. The project provides significant improvement to surrounding land uses, the neighborhood, and/or the City while reflecting Mound's existing land use patterns including adding needed road, access and multi -modal transportation improvements. 9. The design of the project protects any significant natural, cultural, historic and/or archaeological features and contributes to the implementation of other public policies, as adopted by the city from time to time, such as the promotion of quality historical, cultural or architectural design, enhancement of natural features, including but not limited to, water quality improvements, innovative storm water strategies, energy conservation, multi -modal transportation, and decreasing capital and/or operating costs of local government. For these reasons, the Housing and Redevelopment Authority of and for the City of Mound will only consider a Tax Increment Financing (TIF) request or request for other public subsidy that meets a substantial number of the established economic development goals and objectives as mentioned above, as determined by the HRA, and fully demonstrates long-term benefits to the community. 2415 Wilshire Boulevard . Mound, MN 55364 • Phone (952) 472-0604 • Fax (952) 472-0620 APPLICATION FOR PUBLIC FINANCING Applicant Information 1. Applicant Name: Address: Telephone: (Name should be the officially registered name of the business entity.) Email Address: 2. Name of Person Completing the application: Address: Telephone: Email Address: 3. Names and Addresses of Architect, Engineer, and General Contractor for this project: Attorney Name: Address: Telephone: Architect Name: Address: Telephone: Engineer Name: Address: Telephone: General Contractor Name: Address: Telephone: Email Address: Email Address: Email Address: Email Address: 4. If the applicant is a corporation, please name officers, directors, or stockholders holding more that 5% of the stock of the corporation. If the corporation is not formed, provide as much information as possible concerning potential officers, directors, or stockholders, either in the space below or in a separate exhibit: -29- 4a. If the applicant is a general partnership, name of the general partners and if a limited partnership, state the general partners and limited partners with more than 5% interest in the limited partnership. If the partnership is not formed, provide as much information as possible concerning potential officers, directors or stockholders, either in the space below or in a separate exhibit. 4b. Has the applicant ever been in bankruptcy? If yes, please describe the circumstances. Yes (please Explain): No: 4c. Has the applicant ever been convicted of a felony? Is yes, please describe the circumstances. Yes (please Explain): I 4d. Has the applicant ever defaulted on any bond or mortgage commitment? Yes (please Explain): No: Project Information 1. PID#'s, legal description, address, and size of project site: PID#: Address: Legal Description: Size of Project Size (Acres): 2. Current ownership of the site: -30- 3. Do you have current control of the site: Yes: No: 4. Project description. 5. If property is to be subdivided or replatted, please describe. 6. Enter estimated project costs in the space below or in a separate exhibit: (Please enclose detailed sources and uses and 15 -year operating Pro Forma). a. b. C. d. e. f. 9. Land Acquisition: Environmental/ Soil Corrections: Surveys: Public Improvements: Site Development: Demolition: Building(s): Shell (if applicable) Tenant Improvements (if applicable) FF&E: Architectural & Engineering Fees: Legal Fees/ Other Consulting Fees: Financing Costs: Construction Interest: Title Insurance: Mortgage Registration: Bank/ Borrower Legal: Recording/ Closing: Construction Loan Fees: S/W Connection Charges: s. Park Dedication: t. Appraisal: u. Taxes: v. Contingencies (construction): w. Contingencies (soft): x. Other: y. Permitting: z. MCES SPC: TOTAL $ 7. Source of Financing a. Equity: b. Bank Financing: c. Public Assistance: (TIF or Tax Abatement) d. Other governmental loans/ grants: e. Deferred Developer Fees: f. Other: Terms of Financing (years): Rate of Financing: Cap Rate: 8. Project Construction Schedule: a. Construction Start Date: b. Construction Completion Date: c. If Phased Project: January 2, (year) January 2, (year) % Completed % Completed 9. Total Estimated Market Value of Project upon completion $ 10. Please indicate how the project meets the economic development goals and objectives as stated in Mound TIF Policy (ADMIN- ), either in the space below or in a separate exhibit. -32- 11. Please explain how the proposed project impacts public services, adjacent roadways and/or contributes to or alleviates the need for additional public parking. 12. Will any public official of the City, either directly or indirectly, benefit from the issuance of public assistance within the meaning of Minnesota Statutes, Section 412.311 or 471.87? If yes, please explain the circumstances. Circle One: Yes / No If 'Yes', please explain: Public Assistance _Request 1. Type and amount of assistance and term. Type: If TIF, is project within an established TIF District? Circle One: Yes / No Amount: Term (years): 2. Describe the purpose for which Public Assistance (TIF or Tax Abatement) is required, either in the space below or in a separate exhibit. -33- 3. Please submit an itemized list of project costs for which TIF assistance is being requested, either in the space below or a separate exhibit. Note: Assistance for TIF is required to meet the uses identified by statute including, but not limited to the following: • Public improvements • Land acquisition and land write down • Loans • Site preparation and improvement • Demolition • Legal, administration and engineering 4. State specific reasons why, "but for" the use of public assistance, this project would not be possible. Application Process 1. The following documents must accompany the Application: A. A detailed sources & uses statement and 15 -year project Pro Forma B. Parcel Map depicting the proposed redevelopment area C. If housing, detailed breakdown of units by unit type, sq/ft, base room rent and service cost D. Site plans and floors plans (as available) E. Significant additional information may be requested at any time by the City/ HRA and may be in addition to the materials outlined in this application. The Applicant shall be required to submit any and all information as requested by the City/HRA. 2. At the time of acceptance by staff of the Public Financing Application, the applicant shall deposit $10,000 with the City/HRA to cover attorney and consultant costs incurred if the project is located in an existing TIF district or if a public subsidy other than TIF is being requested, or $25,000 if the project is not located within an existing TIF district. Funds will also cover the drafting and negotiating of a development agreement and conducting any fiscal analysis that may be required to meet the requirements of utilizing any public financing. If additional expenses are incurred beyond the initial deposit, prior to th_34_�cution of a development agreement, the City/ HRA shall notify the applicant in writing and the applicant will be required to deposit additional funds upon notice. 3. The Applicant shall hold the City/HRA, its officers, consultants, attorneys, and agents harmless from any and all claims arising from or in connection with the Project or Public Assistance Application, including but not limited to, any legal or actual violations of any State or Federal securities laws. 4. The Applicant recognizes and agrees that the City/HRA reserves the right to deny any application for Public Assistance at any stage of the proceedings prior to adopting the resolution approving the public assistance, that the Applicant is not entitled to rely on any preliminary actions by the City/HRA prior to the final resolution, and that all expenditures, obligations, costs, fees, or liabilities incurred by the Applicant in connection with the Project are incurred by the Applicant at its sole risk and expense and not in reliance on any actions of the City/ HRA. The undersigned, a duly authorized representative of the Applicant, hereby certifies that the foregoing information is true, correct, and complete as of the date hereof and agrees that the Applicant shall be bound by the terms and provisions herein. NAME OF APPLICANT: NAME OF ORGANIZATION: APPLICANTS SIGNATURE DATE CITY ACCEPTANCE OF APPLICATION APPLICATION FEE PAID ESCROW ACCOUNT: -35- DATE