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HomeMy WebLinkAbout91-71 - ADMIN Resolution - City Council - 1991/04/01"SUBSTITUTED ORIGINAL" RESOLUTION NO. 91-71 RESOLUTION AUTHORIZING EXECUTION OF A COOPERATION AGREEMENT WHEREAS, THE HOUSING AUTHORITY OF ST. LOUIS PARK proposes to develop and administer a low -rent housing project or projects to con- sist of approximately 15 dwelling units; and WHEREAS, THE CITY OF ST. LOUIS PARK desires to enter into a Cooperation Agreement with the HOUSING AUTHORITY OF ST. LOUIS PARK in connection with such project; NOW, THEREFORE, BE IT RESOLVED: 1) That the CITY OF ST. LOUIS PARK shall enter into a Cooperation Agreement with the HOUSING AUTHORITY OF ST. LOUIS PARK in a form substantially similar to the attached agreement labelled Exhibit I and incorporated by reference herein. 2) That the City Manager is hereby authorized and directed to execute said Cooperation Agreement, in quadruplicate, in behalf of said CITY OF ST. LOUIS PARK and the City Clerk is hereby authorized and directed to affix the corporate seal of said CITY OF ST. LOUIS PARK thereon and to attest the same. 3) That this Resolution shall take effect immediately. Adopted by the City Council April 1, 1991. Atte /s/ Bevy A.JFlanagan a4 City Clerk /s/ Lyle W. Hanks Mayor Reviewed for administration: /s/ W. C. Dixon ‘401 City Manager Approved as to form and exe cution: A -AGI - t ..Q: 31ra Z /s/ Suesan Pace -Shapiro City Attorney EXHIBIT I MN -52481 CONTRACT 1997 COOPERATION AST This Agreement entered into this 9th day of April , 19 91 , by and between the Housing Authority of St. Louis Park (herein called the "Local Authority") and the City of St. Louis Park (herein called the "Municipality"), witnesseth: In consideration of the mutual covenants hereinafter set forth, the parties hereto do agree as follows: 1. Whenever used in this Agreement: (a) The tern "Project" shall mean any low -rent housing hereafter developed or acquired by the Local Authority with financial assistance of the United States of America acting through the Secretary of Housing and Urban Development (herein called the "Government"); excluding, however, any low -rent housing project covered by any contract for loans and annual contributions or grants entered into between the Local Authority and the Government, or its predecessor agencies, prior to the date of this Agreement. (b) The tern "Taxing Body" shall mean the State or any political subdivision or taxing unit thereof in which a Project is situated and which would have authority to assess or levy real or personal property taxes or to certify such taxes to a taxing body or public officer to be levied for its use and benefit with respect to a Project if it were not exempt from taxation. (c) The teen "Shelter Rent" shall mean the total of all charges to all tenants of a Project for dwelling rents and nondwell_ng rents (excluding all other income of such Project), less the cost to the Local Authority of all dwelling and nondwelling utilities. (d) The tern "Slum" shall mean any area where dwellings predominate which, by reason of dilapidation, overcrowding, faulty arrangement or design, lack of ventilation, light or sanitation facilities, or any combination of these factors, are detrimental to safety, health, or morals. 2. The Local Authority shall endeavor: (a) to secure a contract or contracts with the Government for loans and annual contributions or grants covering one or more Projects comprising approximately 15 units of low -rent housing and (b) to develop or acquire and administer such Project or Projects, each of which shall be located within the corporate limits of the Municipality. The obligations of the parties hereto shall apply to each such Project. 3. (a) Under the constitution and statutes of the State of Minnesota, all Projects are exempt from all real and personal property taxes levied or imposed by any Taxing Body. With respect so long as either (i) such Project is owned puto blic Project, governmental agency and is used for low -rent housingpss body or any contract between the Local Authority and e purposes, en (ii) connection with such Project remains in force and effect, or (iint i) any bonds issued in connection with such Project or any monies due to the Government in connection with such Project remain unpaid, whichever period is the longest, the Municipality, on behalf of all Taxing Bodies, agrees that they will not levy or impose any real or personal property taxes *tor special assessments] upon such Project or upon the Local Authority with respect thereto. During such period, the Local Authority shall make annual payments (herein called "Payments in Lieu of Taxes") in lieu of such taxes *(and special assessments] and in payment for the Public services and facilities furnished from time to time without other cost or charge for or with respect to such Project. (b) Bath such annual Payment in Lieu of Taxes shall be made at the time when real property taxes on such Project would be paid if it were subject to taxation, and shall be in an amount equal to either (i)five percent (5%) of the Shelter Rent actually collected but in no event to exceed five percent (5%) of the Shelter Rent charged by the Local Authority in respect to such Project during the preceding year, or (ii) the amount permitted to be calendarw in effect on the date such payment by applicable State law Payment is made. (c) The Municipality shall distribute the Payments among the Taxing Bodies in the proportion whichthe real property taxes which would have been paid to each Taxing Body for such year if the Project were not exempt from taxation bears to the total real property taxes which would have been paid to all of the Taxing Bodies for such year if the Project were not exempt from taxation; Provided, however, That no payment for any year shall be made to any Taxing Body in excess of the amount of the real property taxes which would have been paid to such Taxing Body for such year if the Project were not exempt from taxation. (d) Upon failure of Taxes, no lien shall attach, nor account thereof. of the Local Authority to make any Payment in Lieu against any Project or assets of the Local Authority shall any interest or penalties accrue or attach on 4. During the period commencing with the date of the acquisition part of the site or sites of any Project and continuing slongas either (i) such Project is owned by a public body or governmental agency and is used for low -rent housing purposes, or (ii) any contract between the Local Authority and the Government in connection with such Project remains in force and effect, or (iii) any bonds issued in connection with such Project or any monies due to the Government in connection with such Project remain unpaid, whichever period is the longest, the Municipality or other appropriate Taxing Body without cost or charge to the Local Authority or * Special assessments are a negotiable item; delete and initial if they are not to be made exempt by this agreement. 2 r the tenants of such Project (other than the Payments in Lieu of Taxes) shall: (a) Furnish or cause to be furnished to the Local Authority and the tenants of such Project public services and facilities of the same character and to the same extent as are furnished from time to time without cost or charge to other dwellings and inhabitants in the Municipality; (b) Vacate such streets, roads, and alleys within the area of such Project as may be necessary in the development thereof, and convey without charge to the Local Authority such interest as the Municipality, or other Taxing Body may have in such vacated areas; and, in so far as it is lawfully able to do so without cost or expense to the Local Authority or to the Municipality or other Taxing Body, cause to be removed from such vacated areas, in so far as it may be necessary, all public or private utility lines and equipment; (c) In so far as the Municipality or other Taxing Body may lawfully do so, (i) grant such deviations from the building code of the Municipality or other Taxing Body as are reasonable and necessary to promote economy and efficiency in the development and administration of such Project, and at the same time safeguard health and safety, and (ii) make such changes in any zoning of the site and surrounding territory of such Project as are reasonable and necessary for the development and protection of such Project and the surrounding territory; (d) Accept grants of easements necessary for the development of such Project; and (e) Cooperate with the Local Authority by such other lawful action or ways as the Municipality or other Taxing Body and the Local Authority may find necessary in connection with the development and administration of such Project. 5. In respect to the initial development of any Project, the Municipality further agrees, on behalf of all Taxing Bodies, that within a reasonable time after receipt of a written request therefor from the Local Authority: (a) They will accept the dedication of all interior streets, roads, alleys, and adjacent sidewalks within the area of such Project, together with all storm and sanitary sewer mains in such dedicated areas, after the Local Authority, at its cwn expense, has completed the grading, improvement, paving, and installation thereof in accordance with specifications acceptable to the Municipality or other Taxing Body; (b) They will accept necessary dedications of land for, and will grade, improve, pave, and provide sidewalks for, all streets bounding such Project or necessary to provide adequate access thereto (in consideration whereof the Local Authority shall pay to the Municipality 3 or other Taxing Body such amount as would be assessed against the Project site for such work if such site were privately awned); and (c) They will provide, or cause to be provided, water mains, and storm and sanitary sewer mains, leading to such Project and serving the bounding streets thereof (in consideration whereof the Local Authority shall pay to the Municipality or other Taxing Body such amount as would be assessed against the Project site for such work if such site were privately owned). 6. If by reason of the Municipality's or other Taxing Body's failure or refusal to furnish or cause to be furnished any public services or facilities which they have agreed hereunder to furnish or cause to be furnished to the Local Authority or to the tenants of any Project, the Local Authority incurs any expense to obtain such services or facilities, then the Local Authority may deduct the amount of such expense from any Payments in Lieu of Taxes due or to beccare due to the Municipality or other Taxing Body in respect to any Project or any other lar -rent housing projects owned or operated by the Local Authority. 7. No Cooperation Agreement heretofore entered into between the Municipality and the Local Authority shall be construed to apply to any Project covered by this Agreement. 8. No member of the governing body or any other public official of the Municipality or other Taxing Body who exercises any responsibilities or functions with respect to any Project during his tenure or for one year thereafter shall have any interest, direct or inc'..irect, in any Project or any property included or planned to be included in any Project, or any contracts in connection with such Projects or property. If any such governing body member or such other public official of a Taxing Body involuntarily acquires or had acquired prior to the beginning of his tenure any such interest, he shall immediately disclose such interest to the Local Authority. 9. So long as any contract between the Local Authority and the Government in connection with any Project retrains in force and effect, or so long as any bonds issued in connection with any Project or any monies to the Government in connection with any Project remain unpaid, this Agreement shall not be abrogated, changed, or modified without the consent of the Government. The privileges and obligations of the Municipality and other Taxing Bodies hereunder shall remain in full force and effect with respect to each Project so long as the beneficial title to such Project is held by the Local Authority or by any other public body or governmental agency, including the Government, authorized by law to engage in the development or administration of low -rent housing projects. If at any time the beneficial title to, or possession of, any Project is held by such other public body or governmental agency, including the Government, the provisions hereof shall inure to the benefit of and may be enforced by, such other public body or governmental agency, including the Government. 4 1 7 r IN WITNESS WHEREOF the Municipality and the Local Authority have respectively signed this Agreement and caused their seals to be affixed and attested as of the day and year first above written. (SEAL) Attest: /s/ Beverly A. Flanagan, City Clerk (Title (SEAL) Attest: (Title 5 CITY OF ST. LOUIS PARK, MINNESOTA (Corporate Name of Municipality) By /s/ W.C. Dixon, City Manager (Title HOUSING AUTHORITY OF ST. LOUIS PARK (Corporate Name of Local Authority) /s/ Richard P. McGinley Chairman B Y/s/ W. C. Dixon Executive Director