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HomeMy WebLinkAbout99-152 - ADMIN Resolution - City Council - 1999/12/20RESOLUTION NO. 99-152 RESOLUTION OF THE CITY OF ST. LOUIS PARK AUTHORIZING EXECUTION OF A COOPERATION AGREEMENT WHEREAS, THE HOUSING AUTHORITY OF ST LOUIS PARK, proposes to develop and administer a Metropolitan Housing Opportunity Program low -rent housing project that consists of 12 dwelling units, and WHEREAS, THE CITY OF ST LOUIS PARK, shall 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 substantially the attached form 2 That the Mayor and City Manager are hereby authorized and directed to execute said Cooperation Agreement, in quadruplicate, on behalf of said CITY OF ST LOUIS PARK 3 That this resolution shall take effect immediately Attest Reviewed for Administration Adoptedy City Council December 20, 1999 Mt R Rieso I u-hov, 9 9 --/.5.- COOPERATION iSt COOPERATION AGREEMENT Co n-heac+ /Jo. 17 —O O This Agreement made and entered into this 70+''' day of Dece iJ r , 1999, by and between the Housing Authority of St. Louis Park (the "Authority") and the City of St Louis Park, State of Minnesota (the "Municipality"). In consideration of the mutual covenants hereinafter set forth,the parties hereto agree as follows, , 1 Whenever used in this Agreement (a) The term "MHOP Units" means twelve (12) units of low -rent housing hereafter to be developed with the financial assistance of the United States of America acting through the Secretary of Housing and Urban Development (the "Government") and located within a one hundred and twenty-four (124) unit apartment development (the "Development") to be owned by a low income housing tax credit partneiship ("Ownei") and located at 2740 & 2750 Louisiana Avenue and 2704, 2705, 2711,2717, 2722. 2730, 2741. 2742, & 2754 Louisiana Court (b) The term "Taxing Body" or "Taxing Bodies" means the State of Minnesota and any and all political subdivisions or taxing units thereof in which the MHOP Units are 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 the MHOP Units if they were not exempt from such taxation (c) The term "Shelter Rent" means the total of all charges to all MHOP Unit tenants, for dwelling rents and nondwelling rents (excluding all other income of the MHOP Units) less the cost of all dwelling and nondwelling utilities 2 The Authority shall endeavor 69592 (a) to secure a contract with the Government foi capital grants and annual contributions foi the MI -[OP Units involving a tiansfci of such funds from the Minneapolis Public Housing Authority ("MPHA"), and (b) to cause to be developed and provide for the administration of the MHOP Units 1 • f 3 (a) Pursuant to Minnesota Statutes, Section 469.040, the MHOP Units are exempt from all real and personal property taxes levied or imposed by any Taxing Body for so long as either (1) the MHOP Units are owned by a public body 01 governmental agency and are used for low -rent housing purposes, (rr) the MHOP Units are subject to the requirements of Section 5 of the United States Housing Act of 1937; (iii) the contract between the Authonty and the Owner in connection with the MHOP Units continues to obligate the Owner to operate the MHOP Units as a low income housing project, or (iv) any obligations issued in connection with the MHOP Units 01 any moneys due to the Government in connection with such MHOP Units remain unpaid, whichever period is the longest (the "Exemption Period") 69592 (b) During the Exemption Period, the Municipality, on behalf of the Taxing Bodies, agrees that it will not levy or impose any real or personal property taxes upon the MHOP Units or upon the Authority with respect thereto. Because the MHOP Units consists of twelve (12) units located within and under common private ownership with one hundred and ten (112) additional housing units which comprise the Development, the property tax taxes and property tax exemption shall be determined as follows (i) the tax capacity of the total Development shall be multiplied by a fraction, the numerator of which equals the total number of MHOP Units and the denominator of which equals the total number of housing units in the Development and (ii) the product thereof shall be deducted from said tax capacity (c) During the Exemption Period, the Authority shall cause the owner to make annual payments in lieu of taxes ("PILOT") in payment for the public services and facilities furnished from time to time without other cost or charge for or with respect to the MHOP Units Each PILOT shall be made at the time when real property taxes on the MHOP Units would be paid if it was subject to taxation, and shall be in an amount equal to the lesser of 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 with respect to such MHOP Units during the preceding calendar year, 01 (ri) the maximum amount permitted to be paid by applicable State law in effect on the date such payment is made (d) Pursuant to Minnesota Statutes, Section 469 040, subdivision 3, the County shall distribute the PILOT among the Taxing Bodies in the proportion which the real property taxes which would have been paid to each Taxing -2- • 0 Body for such year if the MHOP Units were not exempt from taxation, provided, however, that no payment for any year shall be made to any Taxing Body m excess of the amount of the real property taxes which would have been paid to such Taxing Body for such year if the MHOP Units were not exempt from taxation. (e) In the event the PILOT is not paid, no lien against the MHOP Units of assets of the Authority shall attach, nor shall any interest or penalties accrue or attach on account thereof 4 During the Exemption Period, the Municipality, or other appropriate Taxing Body, without cost or charge to the Authority 01 tenants of the MHOP Units (other than PILOT) shall 69592 (a) Furnish or cause to be furnished to the MHOP Units public services and facilities of the same character and to the same extent as are furnished fiom time to time without cost or charge to othei dwellings and inhabitants in the Municipality, (b) Vacate such streets, roads. and alleys within the area of the MHOP Units as may be necessary in the development thereof, and convey without charge to the Authority or Owner of the MHOP Units 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 Authority, the Owner of the MHOP Units 01 to the Municipality or othei Taxing Body, cause to be iemoved from such vacated aieas, in so fat as it may be necessary, all public 01 piivate utility lines and equipment; (c) In so fai as the Municipality or other Taxing Body may lawfully do so, (1) 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 the MHOP Units, and at the same time safeguaid health and safety, and (ri) make such changes in any zoning of the site and sunounding territory of the MHOP Units as are reasonable and necessary for the development and piotection of the MHOP Units and the surrounding territory. (d) Accept grants of easements necessary for the development of the MHOP _ Units, and -3- 1 s (e) Cooperate with the Authority by such other lawful action or ways in the Municipality or othei Taxing Body that the Authority may find necessary in connection with the development and administration of the MHOP Units. 5 In the initial development of the MHOP Units, the Municipality further agrees, on behalf of all Taxing Bodies, that within a reasonable time after receipt of a written request therefor from the Authority. (a) that it will accept the dedication of all interior streets, roads, alleys, and adjacent sidewalks within the area of the Development, together with all storm and sanitary sewer mains in such dedicated areas, after the Ownei of the MHOP Units, at its own expense, has completed the grading improvement, paving, and installation thereof in accordance with specifications acceptable to the Municipality or other Taxing Body, (b) that it will accept necessary dedications of land for, and will grade, improve, pave, and provide sidewalks for, all streets bounding the Developments as are necessary to pi ovide adequate access thereto (in consideration whereof the Owner shall pay to the Municipality of othei Taxing Body such amount as are 01 could be assessed against the Development), and (c) that it will provide, or cause to be provided, water mains, and storm and sanitary sewer mains, leading to the Development and serving the bounding streets thereof (in consideration whereof the Owner of the MHOP Units shall pay to the Municipality or other Taxing Body such amount as are 01 could be assessed against the Development) 6 If by reason of the Municipality's or othei Taxing Body's failure or refusal to furnish or cause to be furnished any public services or facilities which it has agreed hereunder to furnish or cause to be furnished to the Authority, the Ownei or tenants of the MHOP Units, the Authority or the Owner of the MHOP Units incurs any expense to obtain such services or facilities, then the Authority may cause to be deducted the amount of such expense from any PILOTS due or to become due to the Municipality or othei Taxing Body in respect to the IMIHOP Units 7 No Cooperation Agreement heretofore entered into between the Municipality and the Authority shall be construed to apply to any MHOP Units covered by this Agreement . 69592 -4- 1 8 No member of the governing body or any othei public official of the Municipality or other Taxing Body who exercises any responsibilities or functions with respect to the MHOP Units during his/her tenure or for one year thereafter shall have any interest, direct or indirect, in the MHOP Units or any property included or planned to be included in the MHOP Units, oz any contracts in connection with the MHOP Units oi 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/her tenure any such interest, he/she shall immediately disclose such interest to the Authority. 9 During the Exemption Period this Agreement shall not be abrogated, changed, or modified without the consent of the Government The privileges and obligations of the Municipality and othei Taxing Bodies hereunder shall also remain in full force and effect with respect to each MHOP Units so long as the beneficial title to such MHOP Units is held by the 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, 01 possession of, any MHOP Units is held by such other public body 01 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. IN WITNESS WHEREOF, the Municipality and the Authority have respectively signed this Agreement and caused then seals to be affixed and attested as of the day and year first above written 69592 HOUSING A HORITY OF ST LOUIS PARK By 1., � , �%III, �ituzA ION i/iii CIT It's OF S 0, IS iarles 'ector ARK b Mayoi Adge-aitoice Meye , r anagen