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HomeMy WebLinkAboutEDA - August 2, 20171685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 . WWW.ANDOVERMN.GOV ECONOMIC DEVELOPMENT AUTHORITY MEETING August 2, 2017 6:00 p.m. Conference Rooms A & B 1. Call to Order— 6:00 p.m. 2. Approval of Minutes (July 5, 2017 Regular; July 5, 2017 Closed) 3. Review Development Activity - Planning 4. Review/Discuss Arbor Oaks Senior Living Request -Administration 5. Discuss Presbyterian Homes Request -Administration 6. Redevelopment Updates/Property Negotiation Updates - Verbal 7. Other Business 8. Adjournment IMCITY • / / ' r1�. 1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 . (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: Economic Development Authority CC: Jim Dickinson, City Administrator FROM: Michelle Harmer, Deputy City Clerk SUBJECT: Approval of Minutes DATE: August 2, 2017 INTRODUCTION The following minutes were provided by Staff reviewed by Administration and submitted for EDA approval: July 5, 2017 Regular July 5, 2017 Closed DISCUSSION The minutes are attached for your review. ACTION REQUIRED The EDA is requested to approve the above minutes. Respectfully submitted, Michelle Hartner Deputy City Clerk Attach: Minutes 1 2 3 4 5 6 ANDOVER ECONOMIC DEVELOPMENTA UTHORITYMEETING- 7 JULY 5, 2017 -MINUTES 8 9 10 The Meeting of the Andover Economic Development Authority was called to order by President 11 Julie Trude, July 5, 2017, 6:01 p.m., at the Andover City Hall, ',1685 Crosstown Boulevard NW, 12 Andover, Minnesota. 13 14 Present: Commissioners Sheri Bukkila, James Goodrich, Valerie Holthus 15 (arrived at 6:05 p.m.), Mike Knight, Timothy Cleven and Joyce 16 Twistol 17 18 Absent: None 19 20 Also present: Executive Director, Jim Dickinson 21 Community Development Director, Joe Janish 22 Public Works Director/City Engineer, Dave Berkowitz 23 24 25 26 APPROVAL OFMINUTES 27 28 June 6, 2017, Regular Meeting: Correct as written. 29 30 Motion by Knight, Seconded by Bukkila, to approve the minutes as written. Motion carried 31 unanimously. 32 33 REVIEW COMMERCIAL PROJECTACTIVITY 34 35 Mr. Janish reviewedthefollowing: 36 37 The Shops @ Andover, 13650 Hanson Boulevard- Natural Nails, Dunkin Donuts and Joy 38 Kitchen are all open. Twin Cities Dental has their permit and just had a rough-in plumbing 39 inspection. Staff believes this building may now be full. 40 41 Estates at Arbor Oaks/Trident Development, 1753 156" Lane — Final inspections occurred the 42 week of June 26w-30ffi. Punchlist items will be addressed with turn-over to ownership expected 43 August 1St 44 45 Daycare Interest — Mother Goose is currently deciding whether to move forward with the 46 project. After working with the land owner, the infrastructure costs are much higher than 47 anticipated. 48 Andover Economic Development Authority Meeting Minutes —duly 5, 2017 Page 2 1 Restaurants/Fast Food — Currently staff is aware of two types of restaurant facilities looking for 2 land to locate to in Andover. Med Express — Is open and a ribbon cutting ceremony took place June 201H Upper Midwest Athletic Construction — A CUP was granted for outside storage, staff is waiting for the Commercial Site Plan to be submitted. 9 Andover Cinema, 1836 Bunker Lake Boulevard — The theater seating has been upgraded and 10 some sidewalk work is expected to occur. Staff is expecting the theatre to apply in August for a 11 CUP for alcohol sales. 12 13 Integra Dental — The Parlour has closed, which has allowed Integra Dental Office to expand. 14 The condominium units are being sold off. President Trude asked staff to look into the placing 15 of the for sale sign for the units as it is in front of the Acapulco Restaurant. 16 17 Overall Marketing — Staff continues to work with parties interested in investing in Andover. 18 19 OTHER BUSINESS 20 21 Commissioner Holthus asked if staff has heard from Presbyterian Homes regarding their Low 22 Income Rental Classification request. Mr. Dickinson indicated Presbyterian Homes is working 23 on the numbers. 24 25 Mr. Janish indicated staff was approached by a business interested in the property located on the 26 southwest side of 161st Avenue and Hanson Boulevard to build a mini -storage business. The 27 zoning would need to be rezoned for the business. The EDA did not think the mini -storage 28 would be a good use for that location. 29 30 Mr. Janish stated staff was contacted by a resident interested in submitting a CUP application for 31 an in home chiropractic office. Commissioner Goodrich is not opposed to home occupations as 32 long as conditions are set, such as parking and how many clients a day are seen. 33 34 A majority of the EDA is not interested in allowing the chiropractic office as an in home 35 business, they would prefer to see the business in commercial space within the city. 36 37 RECESS 38 39 President Trude recessed the regular EDA meeting at 6:30 p.m. to a closed session of the EDA to 40 discuss Property Negotiations Bunker/Crosstown Redevelopment Area. 41 42 RECONVENE 43 44 The EDA reconvened at 6:48 p.m. 45 Andover Economic Development Authority Meeting Minutes —July S, 2017 Page 3 ADJOURNMENT Motion by Bukkila, Seconded by Cleven to adjourn. Motion carried unanimously. The meeting adjourned at 6:49 p.m. Respectfully submitted, Michelle Hartner, Recording Secretary 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: President and Commissioners CC: Jim Dickinson, Executive Direct FROM: Joe Janish, Community Development Director SUBJECT: Review Commercial Project Activity DATE: August 3, 2017 INTRODUCTION Staff will provide a progress report on ongoing commercial project activity at the meeting. ANDOVER COMMERCL4L PROJECTS • The Shops @Andover, 13650 Hanson Boulevard NW—Natural Nails is open. Dunkin Donuts is open. Joy Kitchen is open. Twin Cities Dental is working on interior finishes. The last space in this building has been rented out. • Estates at Arbor Oaks / Trident Development, 1753 156`4 Lane NW — Some corrections are needed, turnover is still expected August 1. • Daycare Interest — Mother Goose has indicated they will not advance their project at the Clock Tower Commons site. A different daycare facility has expressed interest in locating in Andover at a different location. • Restaurants/Fast Food— Currently staff is aware of two companies continuing to look for land to locate in Andover. • Med Express — Is open, a staff member utilized the facility and indicated that the service was excellent. • Upper Midwest Athletic Construction — A CUP was granted for outside storage, staff is waiting for the Commercial Site Plan to be submitted. • Andover Cinema — Has applied for a CUP to sell alcohol, CUP will be before the Planning Commission on August 22. Theater seating has been switched over. Some sidewalk work is expected to occur. • Pack Leader Behavior & Training —Has applied for a CUP for Commercial Animal Training at 15825 71h Ave NW. The company would like to relocate from their current Andover location at Round Lake Blvd. and 16151 Ave. NW. • Overall marketing - City Staff continue to work with parties interested in investing in Andover and marketing all commercial sites. Resp�eff�lly u mi ed, Joe Jamsh ,ANL6 6W^- (4 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: President and Commissioners FROM: Jim Dickinson, Executive Director SUBJECT: Discus Arbor Oaks Senior Living LLC Request DATE: August 3, 2017 INTRODUCTION Arbor Oaks Senior Living LLC is undertaking a HUD refinancing and as part of that refinancing is seeking various TIF contract amendments and consents from the City of Andover to complete that refinancing. DISCUSSION At the June 6 1 EDA meeting City Administration & Roger Fink, representing the Arbor Oaks Senior Living LLC provided background on the request and the impacts and benefits of a potential refinancing. Since that meeting and with the EDA's direction City Administration and bond counsel have worked with Arbor Oaks Senior Living LLC representatives on TIF contract amendments and consents needed to complete the refinancing. City bond counsel, Briggs & Morgan, and City Administration has reviewed extensively the attached documents. An important aspect was for all the parties involved to acknowledge that to keep the stream of TIF payments coming, the terms of the original Development Agreement must be complied with. City Administration is recommending the EDA provide a recommendation of approval of the attached documents to the City Council. ACTION REQUESTED The EDA is requested to receive a brief presentation and provide a recommendation of approval of the attached documents to the City Council. submitted, - Assignment and Assumption Agreement (TIF Documents) (pgs. 2-4) -Collateral Assignment (pgs. 5-15) -Consent, Certifications and Agreements of the City of Andover (pgs. 16-19) ASSIGNMENT AND ASSUMPTION AGREEMENT (TIF Documents) This Assignment and Assumption Agreement (the "Agreement") is made and entered into among Arbor Oaks Senior Living, LLC, a Minnesota limited liability company ("Assignor"), and Arbor Oaks Senior Living Realty, LLC, a Minnesota limited liability company ("Assignee"). WHEREAS, Assignor entered into a Development Agreement dated May 1, 2012 (the "Development Agreement") with the City of Andover, Minnesota (the "City") for the construction by Assignor of a 70 unit senior rental housing development in the City. WHEREAS, Pursuant to the Development Agreement, the City executed that certain Tax Increment Revenue Note in the original principal amount of $540,000 with the Assignor dated February 10, 2014, and provided Assignor is in compliance with the requirements of the Development Agreement, shall make payments thereunder to Assignor (the "Note", the Note and the Development Agreement together the "TIF Documents"). WHEREAS, Assignor desires to assign its interest in the TIF Documents to Assignee and, Assignee desires to accept such assignment pursuant to the Section 6.9 of the Development Agreement, the City has given its consent to this Agreement pursuant to the resolution of the City Council confirmed in the City letter attached hereto as Exhibit A. NOW, THEREFORE, in consideration of the foregoing, and in consideration of other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereby agree as follows: 1. ASSIGNMENT. For good and valuable consideration, the receipt and sufficiency of which Assignor hereby acknowledges, Assignor does hereby sell, convey, transfer, assign and deliver to Assignee, and Assignee does hereby accept from Assignor, all of Assignor's rights, obligations, interests and liabilities in and to the TIF Documents. 2. ASSUMPTION BY ASSIGNEE. In consideration of the transfer from Assignor to Assignee, Assignee assumes all of Assignor's rights, obligations, interests and liabilities under the TIF Documents to the same extent as though it had originally been named as a party thereto and agrees to observe, perform and fulfill all the terms and conditions of the TIF Documents to the same extent as if it had been originally named as a party thereto. 3. FURTHER ASSURANCES. The parties hereto agree to execute, acknowledge and deliver, and to take such further action, as may be necessary or appropriate from time to time to effect the provisions hereof. 4. COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The signature page to this document follows. 143075/v2 0 0 IN WITNESS WHEREOF, each of the parties, intending to be bound hereby as of the Effective Date, has caused this Agreement to be executed by its duly authorized representative on the respective dates entered below. ASSIGNOR: ARBOR OAKS SENIOR LIVING, LLC, a Minnesota limited liability company Samuel L. Kaplan Its: Chief Manager & President ACCEPTANCE Assignee hereby accepts the foregoing Assignment. ASSIGNEE: ARBOR OAKS SENIOR LIVING REALTY, LLC, a Minnesota limited liability company By: Samuel L. Kaplan Its: Chief Manager & President 143075/v2 D EXHIBIT A CITY OF ANDOVER CONSENT 143075/d2 2 COLLATERAL ASSIGNMENT THIS Collateral Assignment ("Collateral Assignment") is made and entered into as of the _ day of 2017 by ARBOR OAKS SENIOR LIVING REALTY, LLC, a Minnesota limited liability company (`Assignor"), to LANCASTER POLLARD MORTGAGE COMPANY, LLC, Delaware limited liability company ("Lender"). RECITALS: A. Lender has agreed to make a loan (the "Loan") in the approximate amount of $9,986,500.00 to Assignor for the purpose of refinancing that certain 70 -unit assisted living facility (the "Project") located on the land described in Exhibit A attached hereto. The Loan is being insured by the U.S. Department of Housing and Urban Development ("HUD") pursuant to the National Housing Act. B. In connection with the financing of the acquisition and development of the Project, Assignor's predecessor in title, Arbor Oaks Senior Living, LLC ("Initial Owner") and the City of Andover ("City"), entered into a Development Agreement dated May 1, 2012 ("TIF Development Agreement') under which the City agreed to assist Initial Owner with the financing and reimbursement of certain costs of the Project. C. Upon completion of the Project in accordance with the TIF Development Agreement, the City reimbursed the Initial Owner in the amount of $540,000.00 for costs incurred and paid by the Initial Owner for certain site improvements to the Project, through the issuance of City's TIF Note (as defined in the TIF Development Agreement, and herein, as the "TIFNote") under which Tax Increments (as defined in the TIF Development Agreement) ("Tax Increment Payments") are being made to the payee thereof on a semiannual basis commencing on August 1, 2014 and continuing each August 1 and February 1 thereafter to and including February 1, 2029, all as set forth in the TIF Development Agreement. The amount of each Tax Increment Payment made by the City under the TIF Note shall be determined by a portion of the tax increment received by the City for the Project. D. In connection with the Loan, the Initial Owner has conveyed the Project to Assignor and has assigned its rights in the TIF Development Agreement, TIF Note and Tax Increment Payments to Assignor. E. Lender requires, as a condition to making the Loan, that Assignor assign its interest in the TIF Development Agreement, TIF Note and Tax Increment Payments to Lender as additional collateral for the Loan and has required that Assignor execute and deliver this Collateral Assignment to Lender. NOW, THEREFORE, in consideration of the foregoing and notwithstanding anything to the contrary in the TIF Development Agreement, and in order to induce Lender to make the Loan, Assignor agrees as follows: 1. Assi ent. Assignor hereby transfers and assigns to Lender and grants to Lender a security interest in all of its right, title and interest in and to the following, whether now existing or hereafter created, and all proceeds and products arising therefrom ("Collateral"): CQ (a) The TIF Note, together with all rights, title and interest of Assignor in and to the existing and future changes, extensions, revisions, modifications, guarantees of performance and/or warranties of any kind with respect thereto; (b) The TIF Development Agreement, together with all rights, title and interest of Assignor in and to any existing and future changes, extensions, revisions, modifications, guarantees of performance, and/or warranties of any kind with respect thereto; (c) The immediate and continuing right to receive and collect all of the Tax Increment Payments payable to Assignor by the City under the terms of the TIF Development Agreement and/or the TIF Note; and (d) The right to receive, endorse and deposit for collection in the name of Assignor or Lender any checks or other evidences of payment, whether made payable to Assignor or Lender, together with the right to demand, collect, sue for, attach, levy, recover, receive, compromise, and adjust and make, execute, and deliver receipts and releases for all of the foregoing which may be or may hereafter become due, owing or payable by the City under the TIF Development Agreement and/or the TIF Note. 2. Representations and Warranties. Assignor represents and warrants to the Lender and agrees as follows: (a) Assignor will not without the prior written consent of Lender modify, amend, supplement, terminate, surrender or change in any manner whatsoever the Collateral and will not release or discharge the obligations of any party thereto or modify or extend the time of performance thereunder or the scope of the work thereunder, (b) The Collateral is free and clear of all liens, security interests, assignments and encumbrances other than the assignment and security interest created by this instrument. (c) Assignor has the full right, power and authority to assign the Collateral free and clear of any and all liens, security interests and assignments. (d) Assignor will keep the Collateral free from any lien, encumbrance, assignment or security interest whatsoever, other than this assignment and security interest. (e) Assignor will from time to time and at the request of Lender execute such documents and pay the cost of filing and recording the same and do such other acts and things as Lender may request to establish and maintain a perfected security interest in the Collateral which is valid and superior to all liens, claims or security interests whatsoever. (f) There have been no defaults on the part of the Assignor under any of the Collateral nor any default by any of the other parties to the Collateral. 2 (g) The TIF Note, the TIF Development Agreement and all other contracts constituting the Collateral are in full force and effect and are the valid and legally binding obligations of the parties thereto, enforceable in accordance with their terms. (h) Each right to payment of the Tax Increment Payments is the valid, genuine, and legally enforceable obligation of the City, subject to no defense, set-off or counterclaim. (i) The Loan, and assignment hereunder, has been consented to by the City as required under the TIF Development Agreement and has priority over any right, title or interest in the Project by the City except special assessments, real property taxes and government service liens. 3. Covenants of Assignor. Assignor covenants and agrees that: (a) Assignor shall perform each and every one of its duties and obligations under the Collateral and observe and comply with each and every term, covenant, condition, agreement, requirement, restriction and provision of the Collateral. (b) Assignor shall give prompt notice to Lender and City of any claim of or notice of default, or of noncompliance, under any Collateral known or given to it together with a copy of any such notice or claim if in writing. (c) Assignor will enforce the full and complete performance of each and every duty and obligation to be performed by the other parties to the Collateral at the sole cost and expense of Assignor. (d) Assignor will appear in and defend any action arising out of or in any manner connected with the Collateral and the duties and obligations of Assignor thereunder. (e) Assignor will not without the prior written consent of Lender modify, amend, supplement, terminate, surrender or change in any manner whatsoever the Collateral. (f) Assignor will use best efforts to obtain the written consent of the City in a form substantially similar to the consent attached to this Collateral Assignment. (g) Assignor shall comply.with the low and moderate income requirements as set forth in the TIF Development Agreement, including, but not limited to, the requirement to provide the City with annual compliance certificates. Assignor shall deliver to Lender a copy of each such compliance certificate at the same time as such compliance certificate is delivered to the City. (h) Assignor has constructed the Project in accordance with the TIF Development Agreement and the Project included the construction of certain site improvements I in the amount of at least $540,000.00 that met the requirements for reimbursement by the City. (i) Assignor shall immediately provide Lender with the original of the TIF Note and an endorsement in blank of the TIF Note, each to be held by Lender as collateral for the Loan. 4. Purpose of Collateral Assignment. This Collateral Assignment is made for the purpose of securing the performance and observance by Assignor of all of the terms and conditions of the documents executed in connection with the Loan and in order to induce Lender to make the Loan to Assignor. 5. Scope of Collateral Assi ent. This Collateral Assignment is a perfected, absolute and present assignment of the Collateral to secure the obligations of Assignor under the Loan. The rights assigned by this Collateral Assignment include, but are not limited to, all of Assignor's interest in the Collateral including all right, power, privilege and option to receive payments under the Collateral, modify or amend the Collateral, terminate any Collateral, or waive or release the performance or satisfaction of any duty or obligation under the Collateral. Lender has the immediate right to receive all payments under the Collateral (including the payment of all Tax Increment Payments made by the City under the TIF Development Agreement); provided, however, that unless and until an "Event of Default" has occurred, Assignor shall have the right, power and authority to collect the Tax Increment Payments. From and after the occurrence of an "Event of Default," at the direction of Lender, all such payments shall be made to, and in the name of Lender, unless Lender directs in writing that such payments be made to Assignor or another third parry. All Tax Increment Payments paid to Lender shall belong to the Lender free and clear of any right of the Assignor to receive any payment of Tax Increment Payments. Except as set forth above in this Section 5, Assignor shall have no right to any Tax Increment Payments until the Loan is paid in full, unless earlier directed in writing by Lender. Once the Loan is paid in full, Lender shall no longer be entitled to any Tax Increment Payments and this Collateral Assignment shall be terminated. Assignor (i) consents to the payment of Tax Increment Payments by the City to the Lender as provided herein and (ii) agrees that, upon receipt by the City of a notice from the Lender to make Tax Increment Payments to or as directed by Lender, the City shall make the payments as so specified by Lender and all amounts so paid to the Lender shall reduce dollar -for -dollar the obligations of the City under the TIF Note. 6. Lender's Rights to Act on Behalf of Assignor. Assignor hereby irrevocably appoints Lender, its agents and assigns, as its agent and attorney-in-fact and irrevocably authorizes Lender to act on its behalf either in the name of Assignor or Lender in connection with the exercise of any of the rights of Assignor under the Collateral. Assignor agrees to reimburse Lender on demand for any payment or expense incurred by Lender, or its agents or attorneys, pursuant to the aforesaid authorization and Lender may charge its payments or expenses to the indebtedness under the Loan. Assignor hereby irrevocably instructs, directs, authorizes and empowers all parties to the Collateral to recognize the claims of Lender, or its successors or assigns, and to act upon any instructions or directions of Lender without investigating the reason for any action taken by Lender. The foregoing irrevocable appointment and authorization are coupled with an interest that shall not be revoked for any reason, including n u I the dissolution, liquidation, death, incompetency or insolvency of the Assignor. The sole signature of Lender shall be sufficient for the exercise of any rights under this Collateral Assignment and any party to the Collateral acting upon the directions of Lender shall be further discharged and released from any claim made by Assignor that such actions are contrary to the terms and conditions of the Collateral. 7. No Assumption By Lender. It is understood and agreed that Lender does not assume any of the obligations or duties of Assignor concerning the Collateral. 8. Events of Default. The occurrence of any of the following events shall constitute an "Event of Default" under this Collateral Assignment: (a) Any failure by Assignor to fully and completely perform any of the duties or obligations of Assignor under this Collateral Assignment or any failure by Assignor to fully and completely observe, satisfy and comply with all terms, covenants and conditions of this Collateral Assignment. (b) Any representation or warranty of Assignor contained in this Collateral Assignment shall be untrue or misleading in any material respect. (c) Any default shall occur under any documents executed by Assignor in connection with the Loan. (d) Any default shall occur by the Assignor or the City under the TIF Note, TIF Development Agreement or any other Collateral. 9. Remedies. Upon the occurrence of an Event of Default, Lender may, without demand or performance, or other demand, advertisement or notice of any kind (except such notice as may be required under the Uniform Commercial Code as enacted in the State of Minnesota (the "Code")) and all which are, to the extent permitted by law, hereby expressly waived, forthwith realize upon the Collateral and shall hold the Collateral free and clear of the interest of Assignor therein and shall be entitled to own, hold, dispose of and otherwise deal with the Collateral in its own right and name as its own property, in the name of Assignor or otherwise, exercise any right of Assignor to demand, collect, receive and receipt for, compromise, compound, settle and give acquittance for and prosecute and discontinue any suits or proceedings in respect of any or all of the Collateral; take any action which Lender may deem necessary or desirable in order to realize on the Collateral, including, without limitation, the power to perform or direct the performance by any other party to any contracts which are a part of the Collateral; to endorse in the name of Assignor any checks, drafts, or other documents which are Collateral or are received in payment or on account of the Collateral; exercise any of the remedies available to a secured party under the Code; and/or proceed to protect and enforce this Collateral Assignment by suits or proceedings or otherwise or for the enforcement of any other legal remedy or equity available to Lender. Assignor expressly recognizes that the Collateral is of a nature not subject to a public or private sale and that the Collateral has no market value of its own and is expressly subject to restrictions on transfer or sale of an interest therein and that therefore no private or public sale is feasible. In the event that any notice is required to be given under the Code, such requirements for reasonable notice shall be satisfied 5 by giving at least ten (10) days' notice to Assignor and City prior to the event or thing given rise to the requirement of notice. The foregoing remedies are cumulative and in addition to, and are not restrictive of or in lieu of, the rights or remedies provided for or allowed under any documents in connection with the Loan, or as provided for or allowed by law or in equity. 10. Self Help By Lender. Should Assignor fail to perform any of its duties and obligations under the Collateral, Lender may, without obligation to do so and without releasing Assignor from its obligation to perform such duties and obligations, perform any or all of such duties and obligations, and to the extent that Lender shall incur any costs or pay any monies in connection therewith, including without limitation any costs or expenses of counsel for Lender, such costs, expenses or payments shall be added to the indebtedness under the Loan and shall bear interest from the date advanced or incurred at the interest rate as stated under the documents in connection with the Loan. 11. Indemnity. Lender shall have no obligation to perform or satisfy any duty or obligation of Assignor under the Collateral. Assignor shall and does hereby indemnify, defend and hold Lender harmless from and against and in respect of any and all actions, causes of action, suits, claims, demands, judgments, proceedings and investigations (or any appeal thereof or relative thereto or other review thereof) of any kind or nature whatsoever, arising out of, by reason of, as a result of or in connection with the Collateral, and any and all liabilities, damages, losses, costs, expenses (including fees of counsel and expenses and disbursements of counsel), amounts of judgment, assessments, fines or penalties, and amounts paid in compromise or settlement, suffered, incurred or sustained by Lender as a result of, or reason of or in connection with any of the matters above. 12. Uniform Commercial Code. To the extent that this Collateral Assignment may be governed by the provisions of the Code now or hereafter in effect, this agreement shall be deemed to be a security agreement within the meaning of the Code, shall be governed by the provisions thereof and shall constitute a grant to Lender of a security interest in the Collateral. 13. Choice of Law. Notwithstanding the place of execution, this instrument is made pursuant to and shall be construed and governed by the laws of the State of Minnesota without regard to the principles of conflicts of law. 14. Notices. Any notices and other communications permitted or required by the provisions of this Collateral Assignment shall be in writing and shall be deemed to have been properly given or served by depositing the same with the United States Postal Service, or any official successor thereto, designated as Certified Mail, Return Receipt Requested, bearing adequate postage, or deposited with reputable overnight delivery service, and addressed as hereinafter provided. Each such notice shall be effective upon being deposited as aforesaid. The time period within which a response to any such notice must be given, however, shall commence to run from the date of receipt of the notice by the addressee thereof. Rejection or other refusal to accept or the inability to deliver because of changed address of which no notice was given shall be deemed to be receipt of the notice sent. By giving to the other parry hereto at least thirty (30) days' notice thereof, either parry hereto shall have the right from time to time to change its address and shall have the right to specify as its address any other address within the United States of America, F7 s Each notice to Lender shall be addressed as follows; Lancaster Pollard Mortgage Company, LLC 65 East State Street, 16th Floor Columbus, OH 43215 Attn: Loan Servicing Each notice to Assignor shall be addressed as follows: Arbor Oaks Senior Living Realty, LLC 90 South 7th Street, Suite 5500 Minneapolis, MN 55402 Attn: Manager With a Copy to: Kaplan, Strangis and Kaplan, P.A. 90 South 7t' Street,,Suite 5500 Minneapolis, MN 55402 Attn: David Karan, Esq. Each notice to City shall be addressed as follows: 15. Consent to Jurisdiction. Assignor submits and consents to personal jurisdiction of the Courts of the State of Minnesota and Courts of the United States of America sitting in such State for the enforcement of this instrument and waives any and all personal rights under the laws of any state or the United States of America to object to jurisdiction in the State of Minnesota. Litigation may be commenced in any state court of general jurisdiction for the State of Minnesota or any United States District Court located in that state, at the election of Lender. Nothing contained herein shall prevent Lender from bringing any action against any other party or exercising any rights against any security given to Lender or against Assignor personally, or against any property of Assignor within any other state. Commencement of any such action or proceeding in any other state shall not constitute a waiver of consent to jurisdiction or of the submission made by Assignor to personal jurisdiction within the State of Minnesota. 16. Estoppel Certificate. The Assignor shall, within ten (10) days of receipt of a written request from Lender or City, furnish Lender and City with a letter certifying whether any Events of Default have occurred under the Collateral or this Collateral Assignment. 17. Successors and Assigns. This Collateral Assignment shall be binding upon the parties hereto and their respective successors and assigns, and shall inure to the benefit of the parties hereto and their respective permitted assigns. The Assignor will not assign its rights and/or obligations under this Collateral Assignment, except for a transfer approved by HUD or the Lender, provided, however, that the City's consent shall also be required in the event that such assignment is in conjunction with an assignment of the TIF Development Agreement that requires the City's consent. The Lender will not assign its rights and/or obligations under this Collateral Assignment without the consent of the City, unless such assignment is made in connection with an assignment of the Loan, in which event no such consent shall be required. 18. Waiver of Jury Trial. THE PARTIES TO THIS COLLATERAL ASSIGNMENT WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING TO WHICH ANY PARTY TO THIS COLLATERAL ASSIGNMENT IS INVOLVED DIRECTLY OR INDIRECTLY AND ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS COLLATERAL ASSIGNMENT OR THE RELATIONSHIP ESTABLISHED HEREUNDER, AND WHETHER ARISING OR ASSERTED BEFORE OR AFTER THE DATE OF THIS COLLATERAL ASSIGNMENT. [Signature Pages to Follow] F:3 IN WITNESS WHEREOF, Assignor has caused this Collateral Assignment to be executed as of the date first above written. ASSIGNOR: ARBOR OAKS SENIOR LIVING REALTY, LLC, a Minnesota limited liability company By: Samuel L. Kaplan, Chief Manager and President STATE OF MINNESOTA COUNTY OF HENNEPIN This instrument was acknowledged before me this _ day of 2017, by Samuel L. Kaplan, as Chief Manager and President of Arbor Oaks Senior Living Realty, LLC, a Minnesota limited liability company. Notary Public signature page to Collateral Assignment Ok IN WITNESS WHEREOF, Lender has caused this Collateral Assignment to be executed as of the date first above written. LENDER: LANCASTER POLLARD MORTGAGE COMPANY, LLC, a Delaware limited liability company By: Nat STATE OF OHIO COUNTY OF FRANKLIN This instrument was acknowledged before me this day of 2017, by , as of Lancaster Pollard Mortgage Company, LLC, a Delaware limited liability company. Notary Public signature page to Collateral Assignment Exhibit A Legal Description of Land of Project Lot 1, Block 1, Arbor Oaks, Anoka County, MN CONSENT, CERTIFICATIONS AND AGREEMENTS OF THE CITY OF ANDOVER CITY OF ANDOVER ("City"), as a party to the Development Agreement ("TIF Development Agreement") dated May 1, 2012 with Arbor Oaks Senior Living, LLC, a Minnesota limited liability company ("Initial Owner"), as assigned to Arbor Oaks Senior Living Realty, LLC, a Minnesota limited liability company ("Assignor"), and as the issuer of the TIF Note (the "TIF Note") issued pursuant to the TIF Development Agreement, acknowledges receipt of a copy of the executed Collateral Assignment ("Collateral Assignment") to which this consent is attached assigning to Lancaster Pollard Mortgage Company, LLC, a Delaware limited liability company ("Lender") all of the Assignor's rights in the TIF Development Agreement, the TIF Note, Tax Increment Payments (as defined in the Collateral Assignment) and certain related rights. This Consent, Certifications and Agreements of the City of Andover (the "City Consent") is executed and delivered to the Lender and Assignor in connection with the execution and delivery of the Collateral Assignment. Capitalized words and terms that are used, but not defined, in this City Consent shall have the meanings ascribed thereto in the Collateral Assignment. The City hereby consents, certifies and agrees to the following: 1. Consent to Conveyance of Project and Assienment and Assumption of TIF Development Agreement. The City hereby consents to (a) the conveyance of the Project by the Initial Owner to the Assignor, (b) the assignment of all of the Initial Owner's rights under the TIF Development Agreement, the TIF Note, the Tax Increment Payments and all related rights by the Initial Owner to the Assignor and (c) the Assignor's assumption of all of the Initial Owner's obligations under the TIF Development Agreement arising on or after such assignment. The City will register the TIF Note in the name of the Assignor upon receipt of the existing TIF Note from Initial Owner, and will register the name of the Assignor in the certification of registration. 2. Collateral Assienment. The City acknowledges that (a) the Lender is making the Loan to the Assignor and (b) the Loan will be secured in part by a mortgage recorded against the Project ("Mortgage") and the payment of the Tax Increment Payments under the TIF Development Agreement. The City hereby consents to the Loan. The City hereby consents to the Collateral Assignment. The City agrees that Assignor has provided Lender with the original of the TIF Note issued by the City. The City further agrees that payments of all Tax Increment Payments under the TIF Note shall continue to be made directly to, and in the name of, Assignor, all in accordance with the terms of the Collateral Assignment, until the City receives subsequent written notice to the contrary from the Lender. 3. Future Transfers of Project. The City agrees that the City's consent shall not be required with respect to any transfer of the Project in the event that (a) such transfer is in connection with a foreclosure or deed -in -lieu of foreclosure of the Mortgage, (b) such transfer occurs at a time at which the Loan is in default or (c) the transferee elects to terminate the TIF Note and TIF Development Agreement (the City agrees that its consent to such termination shall not be required, even if a default then exists under the TIF Development Agreement). In the 0) event of a transfer of the Project pursuant to clause (a) and/or clause (b) of this Section, the City's consent shall not be required with respect to any assignment of the TIF Note and TIF Development Agreement provided that the assignee assumes the obligations of the Assignor under the TIF Development Agreement that arise on or after the date of such assignment. In the event that any such assignment is to Lender, HUD or any of their respective successors or assigns, the liability of such assignee under the TIF Development Agreement shall be limited to the interest of such assignee in the Project. 4. Future Amendments. The City agrees that the TIF Note and the TIF Development Agreement will not be amended without the prior written consent of the Lender and HUD. 5. Replacement Reserve. Section 3.4 of the TIF Development Agreement (relating to a replacement reserve) shall not apply for so long as the Loan is outstanding or the Project is owned by Lender or HUD, provided that the Lender or HUD requires a replacement reserve in connection with the Loan. 6. Events of Default. (a) Clauses (4) and (5) of Section 4.1 of the TIF Development Agreement shall not apply for so long as the Loan is outstanding or the Project is owned by Lender or HUD. (b) If an Event of Default occurs under the TIF Development Agreement, Lender, HUD and any purchaser of the Project at a foreclosure sale or by deed -in -lieu of foreclosure (collectively, a "Successor") shall have a reasonable period of time after receipt of notice of such Event of Default (but in no event less than 30 days) to cure such Event of Default prior to the City exercising any of its rights and remedies under the TIF Development Agreement (including, but not limited to, any right to terminate the TIF Development Agreement). 7. City to Provide Lender Copies of Notices. The City will send to Lender a copy of any notice of an Event of Default (as defined in the TIF Development Agreement) or any other notice given to the Assignor pursuant to the TIF Development Agreement simultaneously with the giving of such notice to Assignor. Any such notice shall be sent to Lender in accordance with the notice provisions of the Collateral Assignment. 8. Estoppel Certificate. The City hereby certifies that, as of the date hereof: (a) Each of the TIF Development Agreement and the TIF Note is in full force and effect and has been duly executed and delivered by the City and is valid and binding on the City. (b) To the knowledge of the City, neither the City nor the Assignor is in default under any of the terms and conditions of the TIF Development Agreement or the TIF Note. Page 2 — Consent of City 0\; (c) Construction of the Project has been completed pursuant to the terms, conditions and limitations of the TIF Agreement and the Project included the construction of site improvements of at least $540,000.00 that met the requirements for reimbursement by the City. (d) The outstanding principal balance of the TIF Note is 9. Miscellaneous. (a) Lender, HUD and their respective successors and assigns may rely upon this City Consent. (b) The City acknowledges and agrees that the Lender and HUD are not parties to the TIF Development Agreement and that, by accepting the Collateral Assignment, the Lender does not become a parry to the TIF Development Agreement. The City further acknowledges and agrees that neither Lender nor HUD is assuming any obligations under the TIF Development Agreement and that neither Lender nor HUD shall have any obligations under the TIF Development Agreement. (c) In the event of any conflict between the terms of the Collateral Assignment and/or this City Consent, on the one hand, and the terms of the TIF Development Agreement, on the other hand, the terms of the Collateral Assignment and/or this City Consent shall be controlling. (d) This City Consent shall survive a foreclosure or deed -in -lieu of foreclosure of the Project. Except as set forth in the preceding sentence, this City Consent shall terminate upon payment in full of the Loan. [Signature Page to Follow] Page 3 — Consent of City IN WITNESS WHEREOF, City has executed this consent effective as of the date of the Collateral Assignment. CITY OF ANDOVER By: Nar STATE OF MINNESOTA COUNTY OF This instrument was acknowledged before me this day of , 2017, by , as of the City of Andover, Minnesota. Notary Public Page 4 — Consent of City 7/26/2017 27039126 V.10 ?CN66WA_ ( ) 1685 CROSSTOWN BOULEVARD N.W. • ANDOVER, MINNESOTA 55304 • (763) 755-5100 FAX (763) 755-8923 • WWW.ANDOVERMN.GOV TO: President and Commissioners FROM: Jim Dickinson, Executive Director SUBJECT: Discuss Presbyterian Homes Request DATE: August 2, 2017 INTRODUCTION Presbyterian Homes has requested the City of Andover's consideration of a Low -Income Rental Classification (LIRC) for their Farmstead Facility in Andover. At the meeting June 6' EDA meeting City Administration provided background on the request and the impacts and benefits of the proposal. EDA direction was for staff to firm up the numbers on the request and bring back to a future meeting. The following are attached to assist with the discussion: • Low Income Rental Classification program description from the Minnesota Housing Finance website. • 2017 Application for Minnesota Low -Income Rental Classification for New Applicants. • Minnesota Statute 273.128A In summary, the request would entail the City entering into an agreement with Presbyterian Homes that Presbyterian Homes would be required to have at least 20% of the total rental units in the rental property available for low income residents, in exchange the City would record the document and allow a tax rate class rate reduction of up to 40 % for the qualifying units in the income restricted property. Presbyterian Homes currently has similar agreements within the metro -area and it is estimated the annual property tax savings for the Farmstead Facility would be approximately $17,000. Attached is a spreadsheet of the estimate of the property tax implication. If the City of Andover were to move forward with such an agreement, City Administration would recommend a $5,000 escrow be required to cover the cost of bond counsel and City Staff. ACTION REQUESTED The EDA is requested to receive a presentation from staff and provide direction on how to proceed. e ctfully submitted, Dic inson Attachments Andover Economic Development Authority Meeting Minutes—June 6, 2017 Page 2 Mr. Fink indicated the lender would like to close in July. President Trude thanked Mr. Fink for coming in and directed staff to work with bond counsel on the assignments and consents requests. DISCUSS PRESBYTERL4N HOMES REQUEST Mr. Dickinson indicated Presbyterian Homes is requesting the City's consideration of a Low Income Rental Classification (LIRC) for their Farmstead Facility in Andover. Mr. Dickinson explained the classification would require 20% (28 units) of the Farmstead units to be available to low income residents. With the classification the City would allow Anoka County to reduce the taxes by 40% for the qualifying units. Mr. Dickinson stated staff is looking for direction from the EDA. A $5,000 escrow would be required from Presbyterian Homes to cover the cost of bond counsel and City staff. The EDA discussed the request. The consensus was for staff to further explore the request. Mr. Dickinson indicated staff would relay to Presbyterian Homes the comments related to the LIRC request. Mr. Dickinson will firm up numbers and bring the information back to a future EDA meeting. c REVIEW/DISCUSS COMMERCIAL PROJECTACTIVITY Mr. Janish reviewed the following: The Shops @ Andover, 13650 Hanson Boulevard- Dunkin Donuts, Natural Nails, and Joy Kitchen are open. Twin Cities Dental has a building permit ready for pick up, however they have not hired a contractor yet. Estates at Arbor Oaks/Trident Development, 1753 156th Lane — Carpet is being installed on the 2nd and 3`d floors. Mr. Roger Fink updated they anticipate the Certificate of Occupancy to be issued by the end of July, landscaping to be done shortly, and they are taking applications and deposits from potential tenants. Eight Unit Townhome Building, 1826 -1840139th Avenue — Is completed and rented. Andover Cinema, 1836 Bunker Lake Boulevard — The seating project was completed May 4d'. Daycare Interest — City Staff has been working with a daycare facility, Mother Goose on their Commercial Site Plan for the Clocktower Commons property. Another daycare facility has expressed interest in locating in Andover as well. Restaurants/Fast Food — Currently staff is aware of two restaurants looking for land to locate to Low Income Rental Classification (LIRC) Low Income Rental Classification (LIRC) The tax bill adopted by the Minnesota Legislature In the 2005 legislative session and signed by the Governor on Wednesday, July 13, 2005 made significant changes to the property tax classification rate for qualifying low-income rental properties. This results In a class rate reduction of up to 90% for qualifying units in some rent and Income -restricted properties. Only those rental properties subsidized under a federal or state government program or meeting certain rent and Income restrictions are eIIgible for the lower class rate. Applications must be made to Minnesota Housing for certification to the local assessor that a property qualifies for the reduced rate. Note: It Is the responsibility of the owner to Inform Minnesota Housing of any dtanges throughout the year. Failure to do so may result In missed communication or the loss of the dassincation. Details Classification Rate Is JS% (reduced from 1.25%) Qualifying properties are at least 20% of total units In the rental property must meet one or more of Ne following criteria: project Based Sedion 8, Low Income Housing Tax Credits, Rental Assistance units financed through Rural Housing Service of USDA, Rent and income restrictions at or below 6O% Area Median Income placed on units by state, federal, or local unit of government as evidenced by a document recorded against the property. Note: The lower tax rate applies only to that portion of the rental property meeting all eligibility criteria. The regular rental class rate of 1.25% will apply to the remainder of the property. Market value determined by the assessor must be based on the standard approach to valuation using unrestricted market rents. Application Applicatlon Fee Is $10 per qualifying unit; total fee not to exceed $150. Application deadline March 31 each year for taxes payable the following calendar year. Vlew this Ianslatlon, Application Form finable r[Q - Downloadable farm and Instructions (for new applicants only). The application deadline is March 31. Note: personalized! 'Reapplication' forms for currently enrolled properties are being sent by mail. 2016 LIRC Assessor Report Freauentiv Asked Ouestimis Questions? Steve O'Brien, 651.297.9065 Toll Free, 1.BDO.657.3W Page I of I httn•//xxnxnxx mnhnTjcina arn7ha7r•.c/QAtPllitP.9f=Pao-eRr.cic1=1'164120490997&na--- 4/19/2017 as va a va Minnesota Housing Finance Agency 2017 Application for Minnesota Low -Income Rental Classification for New Applicants This application must be postmarked by no later than March 31, 2017 or it will not be accepted for pay 2018 tax rate reduction. Please review eligibility criteria (over) to ensure the property being enrolled qualifies for this tax classification. Property and Owner Information Owner federal tax lD p ownership Entity Na me or name of property owner(first, middle, last) Owners mailing address(RFO, street address or PO box) city State Zip Code Name of eligible property (project) Primary address of eligible property (RFD, street address)Cny MN Zip Code Contact name (First, last, MI)Daytime phone Alternate phone Mobile phone Fax E-mail County PINS List the county parceIIDnumbers (PINS/PIDS) and associated parcel addresses that collectively identify the primary address above. If there are more than four PINS/PIDS, list any additional PINS/PIDS and addresses on a separate sheet and attach It to this application. PIN Address city MN Zip Code PIN Address City MN Zip Code PIN Address city MN Zip Code PIN Address city MN Zip Code Number of Qualifying Units Enter number of units financed under each program listed below. The sum of boxes 1-4 must match total number of qualified units entered on line 5 below. 1. Project Based Section 8 Units 2. Housing Tax Credit—Section 42 Units 3. Rural Housing Development — Rental Assistance Units 4. Units financed by federal, state, or local governments and subject to 60% or less of AMI rent and income limits 4a. Specify financing programs Units 5. Qualified Units (sum of units indicated in boxes 1-4 above) 6. Total of all rental units in property 7. Total annual fee (multiply line 5 by $10 and enter result or max of $150) -include check for this amount Unit Distribution Enter number of units by bedroom size. Complete row for total units in project and for qualified units in project. Totals should equal row 6 and 5 respectively. 0BR 1BR 2BR 3BR 4BR SBR 6BR TOTAL Total Units in Property = Qualified Units in Property = Owner Certification and Owner's commitment: I certify that all Information provided is true and correct, that the property meets the requirement(s) to receive the LIRC tax reduction, and that the property is in compliance with all applicable requirements of the low-income housing program that qualifies the property for LIRC. I understand that any False information or low-income housing program non-compliance could result in LIRC non-compliance and loss of some or all LIRC benefits. Signatureofpropertvowner I Date -i General Information: Reapplication: This application is for new applicants only. Use the Reapplication for re -enrollment. Eligibility — Minnesota rental properties financed by federal or state governments in which at least 20% of total units meet any of the following requirements: 1. Project -based Section 8 housing assistance units, 2. Rent & income restricted Housing Tax Credit units, 3. Rural Housing Development Rental Assistance units, 4. Units financed by federal, state or local governments, which are subject to 60% or less of AMI rent & income limits and evidenced by a recorded document. Application deadline for 2017—Applications and remittances must be postmarked by no later than March 31, 2017. How will I know if my application was accepted? —Minnesota Housing will notify applicants of the status of applications once they are processed. How soon does the benefit take effect? —Approved and certified properties will see the tax rate reduction on their tax bill payable in 2018. Owner's responsibility— Apply annually for this benefit, then continue to comply with all requirements of applicable, eligible programs listed above. Change of ownership or mailing address— Property owners are responsible to notify Minnesota Housing of any ownership or mailing address changes. Minnesota Housing is not responsible for misdirected mail. Definitions: Account number— Unique identifier assigned to each application when received at Minnesota Housing. Record & referto the account number in future correspondence and inquiries. You will receive this number from Minnesota Housing at a later date. Area Median Income (AMI)- Established by HUD and published annually around mid-February; serves as the basis for rent and income limits in several low-income housing programs. Assessment date—January 2 of each year. The date property value is set for taxes payable the following calendar year. Housing Tax Credit Program — an indirect federal subsidy of qualified low-income housing available under section 42(g) of the Internal Revenue Code of 1986, as amended and administered by the Dept. of the Treasury. PIN or PID —county Parcel Identification Numberfound on the property tax statement. Also referred to as parcel code or parcel number. Qualifying percentage— percentage of total property units which qualify under one or more of the eligible programs/criteria listed above in Eligibility. At least 20°% of the total units in the property must meet one or more of eligibility criteria to qualify for LIRC. Qualifying unit- unit which qualifies under one or more of the eligible programs/criteria listed above in Eligibility. Project based— refers to rental assistance that is provided for a specific property and cannot be transferred to another property. RHS — Rural Housing Service of U. S. Department of Agriculture RHS/RA— Rural Housing Service Rental Assistance Rental assistance — direct rent subsidy administered by any of several low-income housing programs. Section 8—Rental assistance program under section 8 of the United States Housing Act of 1937, as amended (tenant -based Section 8 vouchers do not qualify for LIRC). Application instructions: General: Completely fill outthe application. Incomplete information in any area could result in rejection of the application. Property and owner information: Complete all fields. If eligible property has no Name, enter "None." County PINS: Enter the PIN/PID & parcel address exactly as shown on your property tax statement. Accuracy of this information is critical. Number of qualifying units: 1) In each program field, enter the number of eligible units subject to rent and income restrictions as reflected in the applicable contract or restrictive covenant. 2) If qualifying units fall into category #4, specify in #4a the applicable federal or state program(s). 3) Enter the total number of qualifying units from each program field. Units: 5) Enter the sum of qualifying units from boxes 1-4. 6) Enter the total number of units in the property. 7) Calculate the total annual fee - $10 per qualified unit in line 1, but not more than the maximum fee of $150.00. Unit Distribution: Enter total number of units broken out by bedroom size for all units in the project then again for only qualified units. The total column should be the same as numbers 6 and 5 in the Units section above. Owner certification and signature: Sign and date the form to certify that at least 20% of total property units qualify for one or more of the eligible programs and to certify that the information provided is correct and complete. Mailing instructions: 1) Make a copy of the completed application for your records. 2) Place completed, signed application in an envelope with a check for the full fee amount, payable to Minnesota Housing. 3) Mail to: Minnesota Housing, Attn: LIRC, 400 Sibley St. #300, St. Paul, MN 55101. Late submittals (postmarked after March 31, 2017) will be returned to the sender and will not be eligible for tax rate reduction for taxes payable in 2018. For further information: Website: Low Income Rental Classification (LIRC) Toll-free: 1.800.657.3647 Metro area: 651.297.4065 TTY: 651.297.2361 or call the Minnesota Relay Service at 1.800.627.3529 Use of information: Some of the information you provide on your application is private by state law. It cannot be given to others without your consent, except to the IRS, other states that guarantee the same privacy, and certain governmental units as provided by law. MINNESOTA STATUTES 2016 273.128 273.128 CERTIFICATION OF LOW-INCOME RENTAL PROPERTY. Subdivision 1. Requirement. Low-income rental property classified as class 4d under section 273. 13, subdivision 25, is entitled to valuation under this section if at least 20 percent of the units in the rental housing property meet any of the following qualifications: (1) the units are subject to a housing assistance payments contract under Section 8 of the United States Housing Act of 1937, as amended; (2) the units are rent -restricted and income -restricted units of a qualified low-income housing project receiving tax credits under section 42(g) of the Internal Revenue Code; (3) the units are financed by the Rural Housing Service of the United States Department of Agriculture and receive payments under the rental assistance program pursuant to section 521(a) of the Housing Act of 1949, as amended; or (4) the units are subject to rent and income restrictions under the terms of financial assistance provided to the rental housing property by the federal government or the state of Minnesota, or a local unit of government, as evidenced by a document recorded against the property. The restrictions must require assisted units to be occupied by residents whose household income at the time of initial occupancy does not exceed 60 percent of the greater of area or state median income, adjusted for family size, as determined by the United States Department of Housing and Urban Development. The restriction must also require the rents for assisted units to not exceed 30 percent of 60 percent of the greater of area or state median income, adjusted for family size, as determined by the United States Department of Housing and Urban Development. Subd. 2. Application. (a) Application for certification under this section must be filed by March 31 of the levy year, or at a later date if the Housing Finance Agency deems practicable. The application must be filed with the Housing Finance Agency, on a form prescribed by the agency, and must contain the information required by the Housing Finance Agency. (b) Each application must include: (1) the property tax identification number; and (2) evidence that the property meets the requirements of subdivision 1. (c) The Housing Finance Agency may charge an application fee approximately equal to the costs of processing and reviewing the applications but not to exceed $10 per unit. If imposed, the applicant must pay the application fee to the Housing Finance Agency. The fee must be deposited in the housing development fund. Subd. 3. Certification. By June 1 of each levy year, the Housing Finance Agency must certify to the appropriate county or city assessors, the specific properties that are qualified under this section and the number of units in the building that qualify. In making the certification, the Housing Finance Agency may rely on the application and any other supporting information that the agency deems necessary from the property owner. History: 1 Sp2005 c 3 art I s 14; 2008 c 154 art 2 s 10; 2008 c 366 art 11 s 12 Copyright © 2016 by the Revisor of Statutes, State of Minnesota. All Rights Reserved. The Farmstead Estimate of 4d property Tax implication Current: Pay 2017 Assessed Value $ 14,912,000.00 2017 Taxes $ 217,475.83 Residential Housing Class Rate 1.25% Tax Rate 1.46% Estimate for 4(d): Pay 2017 Assessed Value $ 14,912,000.00 LIRC Class Rate 0.75% % Affordable 20% % Market 80% Assessed Value Affordable $ 2,982,400.00 Assessed Value Market $ 11,929,600.00 Tax Rate Affordable 0.88% Tax Rate Market 1.46% Estimated Taxes - Affordable $ 26,097.10 Estimated Taxes - Market $ 173,980.66 Total Estimated Taxes $ 200,077.76 Estimated Savings $ 17,398.07