HomeMy WebLinkAbout2010-09-08 HRA Packet
AGENDA
MAPLEWOOD HOUSING AND REDEVELOPMENT AUTHORITY
WEDNESDAY, September 8,2010
7:00 P.M.
CITY HALL, CITY COUNCIL CHAMBERS
1. Call to Order
2. Roll Call
3. Approval of Agenda
4. Approval of Minutes
a. August 11. 2010
5. Unfinished Business
6. New Business
a. Public Hearing: Amendment of the Educational Facilities Revenue Note for
Hill Murray High School
7. Visitor Presentations
8. Commission Presentations
9. Staff Presentations
10.Adjournment.
DRAFT
MINUTES OF THE MAPLEWOOD HOUSING AND REDEVELOPMENT AUTHORITY
1830 COUNTY ROAD BEAST, MAPLEWOOD, MINNESOTA
WEDNESDAY, AUGUST 11, 2010
I. CALL TO ORDER
Chairperson Pearson called the meeting to order at 7:00 p.m.
II. ROLL CALL
Commissioner Je Moua
Chairperson Gary Pearson
Commissioner Colleen Thompson
Commissioner Joy Tkachuck
Vice-Chairperson Beth Ulrich
Absent
Present
Present
Absent
Present
Staff Present: Tom Ekstrand, Senior Planner
III. APPROVAL OF AGENDA
Vice-Chairperson Ulrich moved to approve the August 11, 2010, agenda as
presented.
Commissioner Thompson seconded.
Ayes all; the motion passed.
IV. APPROVAL OF MINUTES
Commissioner Thompson moved to approve the minutes of the July 14, 2010,
meeting as presented.
Vice-Chairperson Aldrich seconded the motion.
Ayes all; the motion passed.
August 11, 2010
Housing and Redevelopment Authority Meeting Minutes
V. UNFINISHED BUSINESS
None
VI. NEW BUSINESS
a. Energy Efficiency Program
Yvonne Pfiefer of Xcel Energy presented and answered questions about the energy
efficiency programs offered by Xcel Energy.
The following program offerings are available through Xcel program:
. Energy Efficiency
. Load Management
. Renewable Energy
Specific components of these programs available for residential, small business,
commercial, and industrial include:
. Audits and engineering studies
. Residential low-income program
. Implementation services
. Residential rebates for electric and natural gas
. Natural gas standard and custom rebates and electric rebates for commercial
. New construction programs: energy efficient buildings and energy design
assistance (to become LEED certified)
. Whole building analysis and rebates: Home Performance and Energy Design
assistance are two that Maplewood might be interested in
. Process efficiency and reconditioning: looks at the entire business help to
streamline process efficiencies (manufacturing)
. Load Management at no charge
. Saver Switch program
. Electric rate savings for businesses
. Solar rewards program
. Wind source program
Maplewood and Xcel will join to facilitate a workshop for residents to introduce the
Home Energy Squad program on October 19. Residents will be able sign up for the
program then. It will be open to all residents of Maplewood.
August 11,2010
Housing and Redevelopment Authority Meeting Minutes
2
b. Green Building Program (presented out of order)
Nick Carver presented and answered questions about the Green Building Program,
which is intended to reduce the negative impact buildings have on the environment.
Specifically, the two codes presented by Mr. Carver include:
The International Green Construction Code, which encompasses commercial,
residential, existing, alterations and additions and encourages code development. It
is a minimum-requirement code.
The National Green BuildinCl Standard, which is a residential code that rates site
design and development (before there is a building) with a four-level star rating.
Mr. Carver will present this same information to the other commissions prior to
presenting to the City Council.
c. Continued Participation in Livable Communities
This was brought by the Metropolitan Council. If Maplewood wishes to continue
participation under the Livable Communities Act (LCA), a resolution must be passed
stating such. The Metropolitan Council recommends the following goals for continued
participation:
. A range (vs. a top-end goal) of new affordable housing units from 252 to 388
. New life-cycle units ranging from 385 to 1050
It was noted that as long as the city is working toward its goals, it will be eligible for
funding.
Staff recommends that the HRA review the 2011 - 2020 life-cycle housing goals and
recommend that the city council adopts a resolution to continue participation in the
program.
Vice-Chairperson Ulrich moved to recommend continued participation in the local
housing incentives account program under the LCA and that it be included as an
agenda item for presentation and discussion at the August 23, 2010, City Council
meeting.
Commissioner Thompson seconded the motion.
All ayes; the motion passed.
August 11, 2010
Housing and Redevelopment Authority Meeting Minutes
3
d. Code Enforcement Report (presented out of order)
Staff gave the Q2 Code Enforcement Report. The number of violations through July
31,2010 is 377. There are 64 cases still pending resolution.
e. Hill Murray High School Bond Amendment
Hill Murray High School is requesting that the HRA approve a resolution calling for a
public hearing to amend the $3.3 million Education Facilities Review Note, which was
approved under the HRA's bonding authority for the purchase of property and capital
improvements at the school. The note is being amended due to a change in the
interest rate.
Vice-Chairperson Aldrich moved that the HRA adopt the resolution calling for a public
hearing on September 8, 2010, at 7:00 p.m. or later to amend the $3.3 million
Education Facilities Review Note previously issued to Hill Murray High School
Commissioner Thompson seconded the motion.
Ayes all; the motion passed.
VII. VISITOR PRESENTATIONS
None
VIII. COMMISSION PRESENTATIONS
None
IX. STAFF PRESENTATIONS (presented out of order)
Chairperson Gary Pearson and Commissioner Colleen Thompson swore the oath of
office.
X. ADJOURNMENT
The meeting was adjourned by consensus at 8:25 p.m.
August 11,2010
Housing and Redevelopment Authority Meeting Minutes
4
MEMORANDUM
TO:
FROM:
James Antonen, City Manager
Tom Ekstrand, Senior Planner
DuWayne Konewko, Community Development and Parks Director
Educational Facilities Revenue Note Amendment
2625 Larpenteur Avenue East
September 1, 2010
SUBJECT:
LOCATION:
DATE:
INTRODUCTION
Brigid McDonough, Esq., of Briggs and Morgan, has provided the attached letter explaining the
requested amendment to the $3,300,000 Educational Facilities Revenue Note previously issued
to Hill Murray High School in 2005 for the purchase of property and for capital improvements at
the school. The amendment, or adjustment, of this revenue note is to change the first
adjustment date from December 10, 2010 to August 10, 2010. This change will reduce the
interest rate on the Note from 5 percent to 4.5 percent. Please refer to Ms. McDonough's letter.
RECOMMENDATION
Adopt the resolution approving the amendment to the $3,300,000 Educational Facilities
Revenue Note previously issued to Hill Murray High School, 2625 Larpenteur Avenue East, to
change the first adjustment date from December 10, 2010 to August 10, 2010. This change will
reduce the interest rate on the Note from 5 percent to 4.5 percent.
p/HRNHill Murray Educational Facilities Note Amendment September 2010
Attachments:
1. Location Map
2. Letter from Brigid McDonough, Esq. dated August 9, 2010
3. Resolution Approving the Amendment to the Educational Facilities Revenue Note, Series 2005
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Attachment 2
BRIGGS
N
MORGAN
2200 IDS Center
80 South 8th Street
Minneapolis MN 55402-2157
'eI612.977.8400
fax 612.977.8650
BRIGGS
MEMORANDUM
TO:
Mary Ippel
FROM:
M. Brigid McDonough, Esq.
DATE:
August 9, 2010
RE:
The Housing and Redevelopment Authority of the City of Maplewood,
Minnesota $3,300,000 Education Facilities Revenue Note, Series 2005
(Hill-Murray School Project) (the "Note")'
Premier Bank is the lender under the above Note ("Premier"). The Hill-Murray
Foundation is the borrower ("HM"). The Note currently provides for a first adjustment date of
the interest rate on the Note on December 10,2010. Premier and HM have agreed to change the
first adjustment date from December 10,2010 to August 10,2010. This change will reduce the
interest rate on the Note from 5.00% to 4.50%. I have prepared an Amendment to the Note
which would provide for the change in the adjustment rate. This Amendment must be signed by
officers of the Housing and Redevelopment Authority of the City of Map1ewood ("HRA"),
Premier and HM. There will be no other changes to the Note.
Under the Internal Revenue Code, this Amendment to the Note constitutes a reissuance of
the Note, because there will be a change in the Note's yield. As a result, theHRA must approve
the Amendment at a public hearing. The HRA will approve a resolution calling for a public
hearing on the proposal to amend the Note and authorize the publication of a notice of hearing at
its August II th, 2010 meeting. Claudia Casey has prepared and forwarded this resolution to
DuWayne Konewko at the HRA and she will be arranging for the publication of the notice of
hearing.
The HRA hearing of the resolution approving the Amendment will be held on September
8th, 2010. I am currently in the process of preparing all of the other documents needed for the
Amendment.
If you have any questions concerning the above, please call me at 612-977-8121 or
email meatbmcdonough@briggs.com
2640172vl
Briggs and Morgan~ Professional Association
Minneapolis I 5t. Paul I www.briggs.com
Member~ lex Mundi, a Global Assodation offndependent law Firms
Attachment 3
Extract of Minutes of a Meeting of the
Board of Commissioners of the Housing and Redevelopment Authority
of the City of Maplewood, Minnesota
Pursuant to due call and notice thereof, a regular meeting of the Board of Commissioners
of the Housing and Redevelopment Authority of the City of Maplewood, Minnesota was duly
held in the City on Wednesday, September 8, 2010, at 7:00 o'clock P.M.
The following commissioners were present:
and the following were absent:
During said meeting
adoption:
introduced the following resolution and moved its
RESOLUTION NO.
RESOLUTION APPROVING THE AMENDMENT TO THE
EDUCATIONAL FACILITIES REVENUE NOTE, SERIES 2005
(HILL-MURRAY SCHOOL PROJECT)
AND
AUTHORlZING THE EXECUTION OF DOCUMENTS RELATING THERETO
The motion for the adoption of the foregoing resolution was duly seconded by
Commissioner , and after full discussion thereof and upon vote
being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
2619965v3
RESOLUTION NO.
RESOLUTION AUTHORIZING AMENDMENT TO TIIE
$3,300,000 EDUCATIONAL FACILITIES REVENUE NOTE, SERIES 2005
(HILL-MORRAY SCHOOL PROJECT)
AND AUTHORIZING THE EXECUTION OF DOCUMENTS RELATING THERETO
WHEREAS, on December 27,2005, the Housing and Redevelopment Authority
of the City of Map1ewood, Minnesota (the "Authority") issued its $3,300,000 Educational
Facilities Revenue Note, Series 2005 (Hill-Murray School Project) dated as of December 27,
2005 (the "Note") made payable to Premier Bank (the "Lender") and loaned the proceeds of the
Note to Hill-Murray Foundation, Maplewood, Minnesota, a Minnesota nonprofit corporation,
(the "Borrower"), pursuant to a Loan Agreement dated as of December 1, 2005, between the
Authority and the Borrower (the "Loan Agreement") to finance the acquisition of approximately
40 acres ofland which is the current footprint of Hill-Murray School (the "School) along with an
additional 4 acres ofland located at 2625 Larpenteur Avenue East in the CityofMaplewood (the
"Project"). The Project is owned by the Borrower and leased to and operated by the Hill-Murray
School, a Minnesota nonprofit corporation and a 501(c)(3) organization, formed as a private
school pursuant to Minnesota Statutes, Section 124D.1 0; and
WHEREAS, pursuant to a Pledge Agreement dated as of December 28, 2005
between the Authority and the Lender, the Authority assigned its rights and interests under the
Loan Agreement (except for certain rights of payment and indemnification) to the Lender; and
WHEREAS, the Borrower has secured payment of its obligations under the Loan
Agreement, including repayment of the Note, by delivery to the Lender of the Mortgage (as
defined in the Loan Agreement); and .
WHEREAS, in order to more fairly adjust the interest rate on the Note on the first
adjustment date as set forth in the Note, the Borrower and the Lender have agreed to change the
First Adjustment Date in the Note from December 10, 2010 to August 10, 2010 and have
requested the Authority to enter into a First Amendment to Education Facilities Revenue Note,
Series 2005 (Hill-Murray School Project) (the "First Amendment to Note") to effect such
changes.
NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the
Housing and Redevelopment Authority of the City of Maple wood as follows:
The form of First Amendment to Note attached to this Resolution as Exhibit A is
hereby approved and the Chair and the Secretary are authorized to execute the First Amendment
to Note, together with such other documents as Bond Counsel considers appropriate in
connection with the amendment of the Note. In the event of the absence or disability \Jf the
Chair or the Secretary, such officers of the Authority as, in the opinion of the Authority
Attorney, may act on their behalf, shall without further act or authorization of the Authority do
all things and execute all instruments and documents required to be done or executed by such
absent or disabled officers. The execution of any instrument by the appropriate officer or
officers of the City herein authorized shall be conclusive evidence of the approval of such
documents in accordance with the terms hereof.
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2619965v3
Adopted by the Board ,of Commissioners of the Housing and Redevelopment Authority
of the City of Maplewood, Minnesota, this 8th day of September, 2010.
Chair
Attest:
Secretary
3
2619965v3
CERTIFICATION BY SECRETARY
STATE OF MINNESOTA )
COUNTY OF RAMSEY ) ss
I, the undersigned, being the duly qualified and acting Secretary of the Housing and
Redevelopment Authority of the City of Maplewood, Minnesota, hereby certify that I have
carefully compared the attached and foregoing extract of minutes with the original thereof on file
in my office and the same is a full, true and complete transcript of the minutes of a meeting of
the Board of Commissioners duly called and held on the date therein indicated, insofar as such
minutes relate to a resolution authorizing the amendment and execution of a revenue note
therefrom, insofar as the same relates to a Resolution Authorizing Amendment of the aggregate
$3,300,000 Educational Facilities Revenue Note, Series 2005 (Hill-Murray School Project) and
Authorizing the Execution of Documents Relating Thereto.
WITNESS my hand officially as such Secretary and the corporate seal of the Authority,
this day of September, 20 I O.
Secretary
(SEAL)
4
2619965v3
Exhibit A
ALLONGE
FIRST AMENDMENT TO EDUCATIONAL FACILITIES REVENUE NOTE, SERIES
2005
(Hill-Murray School Project)
THIS FIRST AMENDMENT TO EDUCATION FACILITIES REVENUE NOTE,
SERIES 2005 (Hill-Murray School Project) (this "Amendment"), is effective as of August 10,
2010 but executed on September 9, 2010, by and between the HOUSING AND
REDEVELOPMENT AUTHORITY OF THE CITY OF MAPLEWOOD, MINNESOTA (the
"Authority") and PREMIER BANK, a Minnesota corporation ("the "Lender") with the consent
of THE HILL-MURRAY FOUNDATION, a Minnesota nonprofit corporation (the "Borrower").
RECITALS:
The Authority issued its Educational Facilities Revenue Note, Series 2005 (Hill-Murray School
Project) dated as of December _,2005 made payable to the order ofthe Lender in the original
principal amount of $3,300,000 but outstanding as of September 8, 2010 in the principal amount
of $ (the "Note"). Capitalized terms not otherwise defined herein shall
have the meanings set forth in the Note.
The Authority, the Lender and the Borrower desire to amend the Note upon the terms and
conditions set forth in this Amendment.
AGREEMENTS:
NOW, THEREFORE, the Authority and the Lender hereby agree as follows:
Amendment ofInterest Rate. Section 1 of the Note is hereby deleted and replaced in its entirety
with the following:
"I. Commencing on the date of this Note and continuing through August 10, 2010
(the "First Adjustment Date" and, together with the Second Adjustment Date (as defmed
below) each an "Adjustment Date") interest shall accrue on the outstanding Principal
Balance at the initial rate of 5.00% per annum (the "Initial Rate")."
2. Fees and Expenses. The Borrower agrees to payor reimburse the Authority and
the Lender for all reasonable out-of-pocket expenses (including, without limitation, reasonable
attorneys' fees, and out-of-pocket disbursements of the Lender's legal counsel, the Authority's
legal counsel and Bond Counsel) incurred by the Authority and the Lender in connection with
this Amendment and related documents.
3. Counterparts. This Amendment may be executed in two or more counterparts
each of which shall be an original and all of which shall constitute but one and the same
instrument.
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2619965v3
4. References to Note. All references to the Note in any document or instrument
related to the Note are hereby amended and shall refer to the Note as amended by this
Amendment. This Amendment shall be attached to and become a part of the Note. Except as
amended hereby, the provisions of the Note shall remain unmodified and in full force and effect
[SIGNATURE PAGE FOLLOWS]
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2619965v3
IN WITNESS WHEREOF, this First Amendment to Note has been executed by the
parties hereto the day and year first above written.
AUTHORITY:
HOUSING AND REDEVELOPMENT
AUTHORITY OF 1BE CITY OF MAPLEWOOD,
MINNESOTA
By:
Chair
Attest:
Secretary
LENDER:
PREMIER BANK
By:
Executive Vice President
Consented and agreed to:
The Hill-Murray Foundation
By:
Its:
By:
Its:
SIGNATURE PAGE TO FIRST AMENDMENT TO EDUCATIONAL FACILITIES REVENUE NOTE, SERIES
2005 (Hill-Murray School Project)
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2619965v3