HomeMy WebLinkAboutEDA - September 19, 2017ANLb
Y O F6
1685 CROSSTOWN BOULEVARD N.W.. ANDOVER, MINNESOTA 55304 . (763) 755-5100
FAX (763) 755-8923 • WWW.ANDOVERMN.GOV
ECONOMIC DEVELOPMENT AUTHORITY
MEETING
September 19, 2017
6:00 p.m.
Conference Rooms A & B
1. Call to Order— 6:00 p.m.
2. Approval of Minutes (August 2, 2017 Regular)
3. Review Development Activity - Planning
4. Review/Discuss Presbyterian Homes Request for Low -Income Rental Classification (LIRC)
for the Farmstead Facility - Administration
5. Redevelopment Updates/Property Negotiation Updates - Verbal
6. Other Business
7. Adjournment
I T Y O F
[DOVE
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: September 19, 2017
INTRODUCTION
The following minutes were provided by Staff reviewed by Administration and submitted
for EDA approval:
August 2, 2017
DISCUSSION
The minutes are attached for your review.
ACTION REQUIRED
Regular
The EDA is requested to approve the above minutes.
Respectfully submitted,
i
Michelle Harmer
Deputy City Clerk
Attach: Minutes
1
2
3
4
5
6 ANDOVER ECONOMIC DEVELOPMENTA UTHORITYMEETING-
7 AUGUST 2, 2017 -MINUTES
8
9
10 The Meeting of the Andover Economic Development Authority was called to order by President
11 Julie Trude, August 2, 2017, 6:00 p.m., at the Andover City; Hall, 1685 Crosstown Boulevard
12 NW, Andover, Minnesota.
13
14 Present: Commissioners Sheri Bukkila, James Goodrich, Mike Knight and
15 Joyce Twistol
16
17 Absent: Commissioners Valerie Holthus and Timothy Cleven
18
19 Also present: Executive Director, Jim Dickinson
20 Community Development Director, Joe Janish
21
22
23
24 APPROVAL OFMINUTES.
25
26 July 5, 2017, Regular Meeting: Correct as written.
27
28 Motion by Knight, Seconded by Twistol, to approve the minutes as written. Motion carried
29 unanimously.
30
31 July 5, 2017, Closed Meeting: Correct as written.
32
33 Motion by Knight, Seconded ;by Twistol, to approve the minutes as written. Motion carried
34 unanimously.
35
36 REVIEW COMMERCIAL PROJECT ACTIVITY
37
38 Mr. Janish reviewed the following:
39
40 The Shops @ Andover, 13650 Hanson Boulevard- Natural Nails, Dunkin Donuts and Joy
41 Kitchen are open. Twin Cities Dental is working on interior finishes. The last space in this
42 building has been leased but the tenant name is unknown at this time.
43
44 Estates at Arbor Oaks/Trident Development, 1753 156th Lane — The facility was turned over to
45 ownership August 2"d. Some units have been rented. The facility owners are currently
46 advertising.
47
48 Daycare Interest— Mother Goose has indicated they will not advance their project at the
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
Andover Economic Development Authority Meeting
Minutes — August 2, 2017
Page 2
Clocktower 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 as part of Walgreens in Andover Station.
Upper Midwest Athletic Construction — A CUP was granted. Staff is waiting for the
Commercial Site Plan to be submitted.
Andover Cinema, 1836 Bunker Lake Boulevard — Seating has been upgraded and the owner has
applied for a CUP to sell alcohol, the CUP will be before the Planning and Zoning Commission
on August 22na
Pack Leader Behavior & Training — Has applied for a CUP for a Commercial Animal Training
facility at 15825 711' Avenue. The company would like to relocate from their current Andover
location at Round Lake Boulevard and 16155 Avenue. A 3,500 square foot building would be
used for the indoor training facility.
Overall Marketing — Staff continues to work with parties interested in investing in Andover.
DISCUSS ARBOR OAKS SENIOR LIVING LLC REQUEST
Mr. Dickinson indicated 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. Mr. Dickinson explained the reason this item is before the EDA is that the
facility is in a TIF District.
Mr. Dickinson reviewed the documents.
Mr. Dickinson stated Bond Counsel Briggs and Morgan have reviewed the documents and will
participate in the closing.
Motion by Goodrich, Seconded by Bukkila recommending approval of the attached documents
to the City Council. Motion carried unanimously.
DISCUSS PRESBYTERIANHOMES REQUEST
Mr. Dickinson stated Presbyterian Homes is requesting the City's consideration of a Low -
Income Rental Classification (LIRC) for their Farmstead Facility. Mr. Dickinson reviewed the
request with the EDA.
Commissioner Bukkila asked if all costs are covered by Presbyterian Homes. Mr. Dickinson
answered that is correct.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
Andover Economic Development Authority Meeting
Minutes —August 2, 2017
Page 3
The EDA has no concerns and directed staff to move forward with the request.
REDEVELOPMENT UPDATES/PROPERTYNEGOTMITON UPDATES
Mr. Dickinson explained staff provided an offer to the property owner of, 2542 138' Avenue. At
this time the property owner is going to wait on selling the property.
Mr. Dickinson indicated staff will continue to monitor the area.
OTHER BUSINESS
President Trude stated Minnesota Monthly magazine is running a "best MN town" contest. A
form would be submitted by the city, five cities are chosen and those cities than solicit online
votes.
ADJOURNMENT
Motion by Bukkila, Seconded by Goodrich, to adjourn. Motion carried unanimously. The
meeting adjourned at 6:50 p.m.
Respectfully submitted,
Michelle Hartner, Recording Secretary
W
A
A C I T Y /,
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 Developmenterector
SUBJECT: Review Commercial Project Activity
DATE: September 19, 2017
INTRODUCTION
Staff will provide a progress report on ongoing commercial project activity at the meeting.
ANDOVER COMMERCIAL PROJECTS
The Shops @ Andover, 13650 Hanson Boulevard NW —Natural Nails, Dunkin Donuts, Joy
Kitchen is open. Twin Cities Dental is expected to receive a CO next week. The last space in
this building has been rented out to SportClips. SportClips permit application has been reviewed
and staff is waiting on the SAC determination by Met Council.
Estates at Arbor Oaks / Trident Development, 1753 156`11 Lane NW — In process of renting out
units.
• Daycare Interest —A daycare facility has expressed interest in locating in Andover and has been
given a third extension for one particular location.
• Restaurants/Fast Food — Currently staff is aware of two companies continuing to look for land to
locate in Andover.
• Upper Midwest Athletic Construction — A CUP was granted for outside storage, staff is waiting
for the Commercial Site Plan to be submitted.
• Andover Cinema — A CUP and liquor license were granted to sell alcohol. Theater seating has
been switched over.
• Pack Leader Behavior & Training —Received a CUP for Commercial Animal Training at 15825
71 Ave NW. The company would like to relocate from their current Andover location at Round
Lake Blvd. and 1611 Ave. NW. Final inspection has been completed.
• Overall marketing - City Staff continue to work with parties interested in investing in Andover
and marketing all commercial sites.
• Northern Natural Gas/Centerpoint Energy — Tank installation is in progress.
• Interest in Hughes Industrial Park — Businesses continue to show some interest in spaces
available in the park area.
• Clock Tower Commons — Is in process of installing their monument sign at Crosstown and
Hanson.
Open To Business — A 2017 first half year report is attached for your review. 137 Clients have
been served as part of the program, with 28 businesses or residents interested in starting a
business or locating in Andover.
RqJaish
lly 7ujitte
Jo
TO BUSINESS
Updates
ANOKACOUNTY
Open To Business
Kathleen DuChene — Business Advisor
1/1/2017 —6/30/2017
Clients Served — 137
Business Stage:
Existing Business — 57
New Entrepreneurs/Start-up/Pre-planning — 56
Client Inquiry — 24*
*Many Client Inquiries turn into meetings later.
Program Hours:
(Includes Direct Client Hours, Program Outreach
& Marketing, Public Events/City Meetings, Data
Collection and Administration)
Total Contract 1112.00
1st QTR 559.00
2nd QTR 553.00
Financing thru 6/30/17:
Loans Approved:
Number - 5
Amount - $292,700
Leveraged - $4,579,410
(Bank/Owner Equity/Other Outside
Financing)
Referral Source
City Website/Newsletters/Utility Inserts — 90
Other/Internet — 22
Bank Referral — 16
Friends/Family —2
No Referral Source — 0
Existing Business Owner — 7
Industry Segment
Service — 61
Retail — 30
Food - 20
Manufacturing — 5
Construction/Real Estate — 12
Health & Fitness — 3
Undisclosed/Undecided - 2
Wholesale/Distribution — 2
Technology — 2
Client City (Business/Residence)
Andover
11/17
Anoka
11/8
Bethel
0/0
Blaine
10/10
Centerville
0/0
Circle Pines
0/1
Col. Heights
8/9
Columbus
1/2
Coon Rapids
22/17
East Bethel
4/2
Fridley
7/7
Ham Lake
13/15
Hilltop
0/0
Lexington
0/0
Lino Lakes
15/14
Linwood —
0/0
Nowthen
0/0
Oak Grove
3/4
Ramsey
14/12
St. Francis
6/4
Spring Lake Prk
1/0
Other Cities/Undecided/Undisclosed 11/15
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: Review/Discuss Presbyterian Homes Request for Low -Income Rental Classification
(LIRC) for the Farmstead Facility
DATE: September 19, 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.
DISCUSSION
At the meeting June 6'h 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.
At the August 2nd EDA meeting City Administration reported that 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.
Since that meeting and with the EDA's direction, City Administration and bond counsel have worked with
Presbyterian Homes representatives on and agreement whereby the City entering into that agreement with
Presbyterian Homes, 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.
City bond counsel, Briggs & Morgan, and City Administration has reviewed extensively the attached
documents for legal compliance. City Administration is seeking the EDA's recommendation of approval
of the attached documents to the City Council for their approval at a September 19' meeting.
ACTION REQUESTED
The EDA is requested to recommend approval by the City Council of the attached agreement allowing for
a Low -Income Rental Classification (LIRC) for the Farmstead Facility in Andover as request by
Presbyterian Homes.
submitted,
Jim
Attachment - Low -Income Rental Classification (LIRC) for the Farmstead Facility Agreement
CONTINUING AFFORDABLE HOUSING AGREEMENT
BY AND BETWEEN
THE CITY OF ANDOVER
AND
PRESBYTERIAN HOMES OF ANDOVER, INC.
This document drafted by: Janna R. Severance
Presbyterian Homes and Services
2845 Hemline Avenue North
Roseville, MN 55113
G: ZtanBrevnkMwutraclslContinuing Afioniable Housing Agmement-Andwer-PHHAL FINAL.dom
Table of Contents
CONTINUING AFFORDABLE HOUSING AGREEMENT............................................................................1
ARTICLEI - DEFINITIONS...........................................................................................................................2
Section1.1 Definitions..................................................................................................................2
ARTICLE II - REPRESENTATIONS AND WARRANTIES...........................................................................2
Section 4.1 Events of Default Defined..........................................................................................3
Section 2.1 Representations and Warranties of the City..............................................................2
Section 4.2 Remedies on Default.................................................................................................4
Section 2.2 Representations and Warranties of Owner................................................................3
Section 4.3 No Implied Waiver......................................................................................................4
ARTICLE III — COMPLIANCE WITH INCOME REQUIREMENTS...............................................................3
Section 4.4 Agreement to Pay Attorney's Fees and Expenses....................................................4
Section 3.1 Compliance with Low and Moderate Income Requirements......................................3
Section 4.5 Indemnification of City................................................................................................5
Section3.2 Recordation................................................................................................................3
ARTICLE V - OWNER'S OPTION TO TERMINATE AGREEMENT............................................................5
Section3.3 LIRC...........................................................................................................................3
Section 5.1 Owner's Option to Terminate.....................................................................................5
ARTICLE IV - EVENTS OF DEFAULT.........................................................................................................3
Section 4.1 Events of Default Defined..........................................................................................3
Section 4.2 Remedies on Default.................................................................................................4
Section 4.3 No Implied Waiver......................................................................................................4
Section 4.4 Agreement to Pay Attorney's Fees and Expenses....................................................4
Section 4.5 Indemnification of City................................................................................................5
ARTICLE V - OWNER'S OPTION TO TERMINATE AGREEMENT............................................................5
Section 5.1 Owner's Option to Terminate.....................................................................................5
Section 5.2 Effect of Termination..................................................................................................5
ARTICLE VI - ADDITIONAL PROVISIONS..................................................................................................6
Section 6.1 Conflicts of Interest....................................................................................................6
Section 6.2 Titles of Articles and Sections....................................................................................6
Section 6.3 Notices and Demands................................................................................................6
Section 6.4 Counterparts..............................................................................................................6
Section 6.5 Law Governing...........................................................................................................6
Section6.6 Expiration...................................................................................................................6
Section 6.7 Legal and Administrative Expenses...........................................................................6
EXHIBITA.....................................................................................................................................................9
Legal Description of Development Property............................................................................9
EXHIBITB...................................................................................................................................................10
ComplianceCertificate.............................................................................................................10
G1 WMBme nkat ntmds\Continuing AffoNable Housing Agreement-Andover-PHHAL FINAL.dou
CONTINUING AFFORDABLE HOUSING AGREEMENT
THIS AGREEMENT, made as of the 1st day of 2017, by and between the City
of Andover, Minnesota (the "City"), a municipal corporation organized and existing under the laws
of the State of Minnesota, and Presbyterian Homes of Andover, Inc., a Minnesota nonprofit
corporation (the "Owner"),
WITNESSETH:
WHEREAS, pursuant to Minnesota Statutes, Section 469.124 through 469.134, the City formed
Development District No. 1 (the "Development District") and has adopted a development program
therefor (the "Development Program"); and
WHEREAS, pursuant to the provisions of Minnesota Statutes, Section 469.174 through 469.179,
as amended, (hereinafter the "Tax Increment Act"), the City has created, within the Development
District, Tax Increment Financing District No. 1-3 (the "Tax Increment District"), and adopted a
tax increment financing plan, dated October 7, 1997, therefor (the "Tax Increment Plan") which
provided for the use of tax increment financing in connection with certain development within the
Development District; and
WHEREAS, in order to achieve the objectives of the Development Program and particularly to
make the land in the Development District available for development in conformance with the
Development Program, the City and Presbyterian Homes Housing and Assisted Living, Inc.
("PHHAL") entered into a Development Agreement dated December 1, 1997 and an Amendment
thereto dated September 5, 2000 (collectively, the "Development Agreement") to assist with the
financing of certain costs of a Project (as hereinafter defined) to be constructed within the Tax
Increment District the Project, and
WHEREAS, pursuant to the Development Agreement, PHHAL agreed to subject a portion of the
units in the Project to certain income and rent restrictions in conformance with Minnesota Statutes,
Section 469.1761; and
WHEREAS, Owner is the successor in interest to PHHAL with respect to the Project; and
WHEREAS, the Development Agreement has expired, but Owner is willing to ensure that at least
20% of the units in the Project continue to be available to persons with low income as described
in this Agreement; and
WHEREAS, in consideration of Owner's promise to maintain affordable senior rental housing in
the City for an extended period after termination of the Development Agreement, the City is willing
to facilitate classification of the Project as "qualifying low-income rental housing ("LIRC") within
the meaning of Minnesota Statutes, Sections 273.128 and 273.13, subd. 25(e) (the "Act"), thereby
reducing property taxes for the Project; and
WHEREAS, the City has determined that this Agreement furthers the City's goals of maintaining
the availability of housing for low income elderly persons of the City; and
NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties
hereto, each of them does hereby covenant and agree with the other as follows:
GZtsMBm4nMa ntmtlsConinuingAfioNableHousingA9reemen4Andwe�PHHALFINALdo� Page 1of12
ARTICLE I - DEFINITIONS
Section 1.1 Definitions - All capitalized terms used and not otherwise defined herein shall have
the following meanings unless a different meaning clearly appears from the context:
Act means Minnesota Statues, Sections 273.128 and 273.13, subd 25(e) as may be amended
from time to time.
Affiliate means a person who controls, is controlled by, or under common control, with Owner.
Agreement means this Agreement, as the same may be from time to time modified, amended
or supplemented.
Business Day means any day except a Saturday, Sunday or a legal holiday or a day on which
banking institutions in the City are authorized by law or executive order to close.
City means the City of Andover, Minnesota.
Compliance Certificate means the Compliance Certificate in substantially the form attached
hereto as Exhibit B.
County means Anoka County, Minnesota.
Development District means the real property described in the Development Program.
Development Program means the development program approved in connection with the
Development District.
Development Property means the real property legally described in Exhibit A attached to this
Agreement.
Event of Default means any of the events described in Section 4.1 hereof.
Legal and Administrative Expenses means the fees and expenses incurred in connection with
the preparation of this Agreement.
LIRC means qualifying low-income rental housing classification, as further defined in the Act.
Owner means Presbyterian Homes of Andover, Inc., its successors and assigns.
Project means the 144 unit residential rental housing facility known as "The Farmstead", which
is located at 13733 Quay Street in the City.
State means the State of Minnesota.
ARTICLE II - REPRESENTATIONS AND WARRANTIES
Section 2.1 Representations and Warranties of the City - The City makes the following
representations and warranties:
1. The City is a municipal corporation and has the power to enter into this Agreement and carry
out its obligations hereunder.
2. The low income housing for seniors contemplated by this Agreement is in conformance with
the City's objectives to provide affordable housing, and furthers the requirements previously
imposed under Minnesota Statutes, Section 469.1761
3. This Agreement is in conformance with the development objectives set forth in the
Development Program.
G VRaHLLBrezlnkaN uAradMConlinuing Affordable Housing Agreement-AnEovervPHHAL FINAL Gaux Page 2 of 12
- Owner makes the following
and
1. Owner has power to enter into this Agreement and to perform its obligations hereunder
2. Neither the execution and delivery of this Agreement, the consummation of the transactions
contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this
Agreement is prevented, limited by or conflicts with or results in a breach of, the terms,
conditions or provision of any contractual restriction, evidence of indebtedness, agreement or
instrument of whatever nature to which Owner is now a party or by which it is bound, or
constitutes a default under any of the foregoing.
ARTICLE III — COMPLIANCE WITH INCOME REQUIREMENTS
Section 3.1 Compliance with Low and Moderate Income Requirements - Owner covenants that
at least 20% of the residential units in the Project (i.e., 29 units) will be occupied by individuals
whose income is 50% or less of area median gross income as published from time to time by the
US Department of Housing and Urban Development. Owner will establish such monitoring
procedures with respect to applicants for and occupants of dwelling units in the Project as the
City may reasonably require to assure compliance with this requirement. On or before January
31 of each year during the term of this Agreement Owner shall submit to the City a Compliance
Certificate covering the calendar year immediately preceding the date of the Compliance
Certificate (the "Measurement Year') certifying that the Project was in compliance with the
provisions of this Section 3.1 during the Measurement Year. The Project shall be in compliance if
the number of units occupied by low income tenants at the end of each calendar month during
the Measurement Year, added together and divided by 12, is not less than 20% of the rentable
number of units in the Project at the end of each calendar month during the Measurement Year,
added together and divided by 12. A resident's income for a Measurement Year shall be the
income of the resident for the calendar year immediately preceding the Measurement Year, as
reported by the resident to Owner. In addition to and concurrently with the delivery of the
Compliance Certificate, Owner shall provide to the City written evidence, as may be reasonably
be requested by the City, of compliance with this Section 3.1. Such written evidence may, include,
without limitation, a certification by each qualifying resident of household income for the
Measurement Year.
Section 3.2 Recordation - This Agreement or a Memorandum thereof, at the option of Owner,
shall be recorded with the Anoka County Recorder.
Section 3.3 LIRC - Owner is solely responsible to seek and obtain LIRC treatment for the Property
in accordance with the Act. The parties agree and understand that Owner will first apply for LIRC
treatment in the 2018 levy year, for taxes payable in 2019, and will seek annual renewal through
the 2028 levy year, for taxes payable in 2029. Owner shall notify the City in writing each year
promptly after Owner receives notice of the property tax classification for the Project, confirming
whether or not the Project has received LIRC designation for the subject levy year. The City shall
co-operate with Owner in any effort to obtain and annually renew the status of the Project for LIRC
treatment under the Act for purposes of property taxation in Minnesota and Anoka County.
Notwithstanding anything to the contrary herein, the City makes no warranties or representations
that the Project is eligible for, or will receive, LIRC treatment.
ARTICLE IV - EVENTS OF DEFAULT
Section 4.1 Events of Default Defined - The following shall be "Events of Default" under this
G.4taH Brewkak ntn0s%ContinuingAffoNableHousingAgMemenFAndwervPHHAIFWALdoa Page 3 of 12
Agreement and the term "Event of Default" shall mean whenever it is used in this Agreement any
one or more of the following events:
1. Failure by Owner to timely pay any ad valorem real property taxes, special assessments, or
other City charges with respect to the Development Property when due and payable.
2. Failure of Owner to observe or perform any other covenant, condition, obligation or agreement
on its part to be observed or performed under this Agreement.
3. If the holder of any mortgage on the Development Property commences foreclosure
proceedings, which proceedings are not withdrawn within sixty (60) days after the filing
thereof.
4. If Owner shall
a) file any petition in bankruptcy or for any reorganization, arrangement, composition,
readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy
Act of 1978, as amended or under any similar federal or state law; or
b) make an assignment for the benefit of its creditors; or
c) admit in writing its inability to pay its debts generally as they become due; or
d) be adjudicated a bankrupt or insolvent; or if a petition or answer proposing the adjudication
of Owner, as a bankrupt or its reorganization under any present or future federal
bankruptcy act or any similar federal or state law shall be filed in any court and such
petition or answer shall not be discharged or denied within sixty (60) days after the filing
thereof; or a receiver, trustee or liquidator of Owner, or of the Project, or part thereof, shall
be appointed in any proceeding brought against Owner, and shall not be discharged within
sixty (60) days after such appointment, or if Owner, shall consent to or acquiesce in such
appointment.
Section 4.2 Remedies on Default - Whenever any Event of Default referred to in Section 4.1
occurs and is continuing, the City, as specified below, may take any one or more of the following
actions after the giving of thirty (30) days' written notice to Owner, but only if the Event of Default
has not been cured within said thirty (30) days:
1. The City may cancel and rescind the Agreement, but only after giving thirty (30) days' written
notice to Owner and only if the Event of Default has not been cured within said thirty (30)
days; or
2. The City may take any action, including legal or administrative action, in law or equity, which
may appear necessary or desirable to enforce performance and observance of any obligation,
agreement, or covenant of Owner under this Agreement.
Section 4.3 No Implied Waiver - In the event any agreement contained in this Agreement should
be breached by any party and thereafter waived by any other party, such waiver shall be limited
to the particular breach so waived and shall not be deemed to waive any other concurrent,
previous or subsequent breach hereunder.
Section 4.4 Agreement to Pay Attorney's Fees and Expenses - Whenever any Event of Default
occurs and the City shall employ attorneys or incur other expenses for the enforcement or
performance or observance of any obligation or agreement on the part of Owner herein contained,
Owner agrees that it shall, on demand therefor, pay to the City the reasonable fees of such
attorneys and such other expenses so incurred by the City.
G:Zta1MBmrmkanoommoo,l mutinuing Affordable Housing Agreement Andwer,PHHAL FINAL doer Page 4 of 12
Section 4.5 Indemnification of City
1. Owner releases from and covenants and agrees that the City, its governing body members,
officers, agents, including the independent contractors, consultants and legal counsel,
servants and employees thereof (hereinafter, for purposes of this Section, collectively the
"Indemnified Parties") shall not be liable for and agrees to indemnify and hold harmless the
Indemnified Parties against any loss or damage to property or any injury to or death of any
person occurring at or about or resulting from any defect in the Project, provided that the
foregoing indemnification shall not be effective for any actions of the Indemnified Parties that
are not contemplated by this Agreement.
2. Except for any willful misrepresentation or any willful or wanton misconduct of the Indemnified
Parties, Owner agrees to protect and defend the Indemnified Parties, now and forever, and
further agrees to hold the aforesaid harmless from any claim, demand, suit, action or other
proceeding whatsoever by any person or entity whatsoever arising or purportedly arising from
the actions or inactions of Owner (or if other persons acting on its behalf or under its direction
or control) under this Agreement, or the transactions contemplated hereby or the operation of
the Project; provided, that this indemnification shall not apply to the warranties made or
obligations undertaken by the City in this Agreement or to any actions undertaken by the City
which are not contemplated by this Agreement
3. All covenants, stipulations, promises, agreements and obligations of the City contained herein
shall be deemed to be the covenants, stipulations; promises, agreements and obligations of
the City and not of any governing body member, officer, agent, servant or employee of the
City, as the case may be.
ARTICLE V - OWNER'S OPTION TO TERMINATE AGREEMENT
Section 5.1 Owner's Option to Terminate - This Agreement may be terminated by Owner, if (i) the
City fails to comply with any material term of this Agreement, and, after written notice by Owner
of such failure, the City has failed to cure such noncompliance within sixty (60) days of receipt of
such notice, or, if such noncompliance cannot reasonably be cured by the City within sixty (60)
days, of receipt of such notice, the City has not provided assurances, reasonably satisfactory to
Owner, that such noncompliance will be cured as soon as reasonably possible; (ii) Owner has
complied with all requirements under the Act to apply for or renew LIRC classification, but the
Project has been denied LIRC classification, initially, or upon any renewal, (iii) the Project is taken
by exercise of eminent domain, (iv) the Project is destroyed or damaged and the cost to replace
or repair is estimated to exceed $1 million, (v) Owner sells or leases the Project as a whole to any
party other than an Affiliate, (vi) Owner is no longer controlled, directly or indirectly, by
Presbyterian. Homes and Services, (vii) the Act is amended to materially alter the eligibility criteria
for LIRC such that the Project as administered under this Agreement would not comply; or (viii)
the Act is amended to materially increase the LIRC tax rate.
Section 5.2 Effect of Termination - If this Agreement is terminated pursuant to this Article V, this
Agreement shall be from such date forward null and void and of no further effect; provided,
however, the termination of this Agreement shall not affect the rights of either party to institute
any action, claim or demand for damages suffered as a result of breach or default of the terms of
this Agreement by the other party, or to recover amounts which had accrued and become due
and payable as of the date of such termination. Upon termination of this Agreement pursuant to
this Article V, Owner shall be free to operate the Project without regard to the provisions of this
Agreement.
G1RaM.Brevnkak ntrects\ContinuingAHONableHousing AgnsetnenFAndwervPHHALFINALUoce Page 5 of 12
ARTICLE VI - ADDITIONAL PROVISIONS
Section 6.1 Conflicts of Interest - No member of the governing body or other official of the City
shall have any financial interest, direct or indirect, in this Agreement, the Project, or any contract,
agreement or other transaction contemplated to occur or be undertaken thereunder or with
respect thereto, nor shall any such member of the governing body or other official participate in
any decision relating to the Agreement which affects his or her personal interests or the interests
of any corporation, partnership or association in which he or she is directly or indirectly interested.
No member, official or employee of the City shall be personally liable to the City in the event of
any default or breach by Owner or successor or on any obligations under the terms of this
Agreement.
Section 6.2 Titles of Articles and Sections - Any titles of the several parts, articles and sections of
the Agreement are inserted for convenience of reference only and shall be disregarded in
construing or interpreting any of its provisions.
Section 6.3 Notices and Demands - Except as otherwise expressly provided in this Agreement, a
notice, demand or other communication under this Agreement by any party to any other shall be
sufficiently given or delivered if it is dispatched by registered or certified mail, postage prepaid,
return receipt requested, or delivered personally, and
1. in the case of Owner is addressed to or delivered personally to
Presbyterian Homes of Andover, Inc.
2845 Hamline Avenue North
Roseville, MN 55113
Attn: Chief Financial Officer
2. in the case of the City is addressed to or delivered personally to the City at:
City of Andover
1685 Crosstown Boulevard NW
Andover. MN 55304-2612
or at such other address with respect to any such party as that party may, from time to time,
designate in writing and forward to the other, as provided in this Section.
Section 6.4 Counterparts - This Agreement may be executed in any number of counterparts, each
of which shall constitute one and the same instrument.
Section 6.5 Law Governinq - This Agreement will be governed and construed in accordance with
the laws of the State.
Section 6.6 Expiration - This Agreement shall expire on December 31, 2029, unless earlier
terminated or rescinded in accordance with its terms.
Section 6.7 Legal and Administrative Expenses - Owner shall pay all City out of pocket Legal and
Administrative Expenses, within 10 Business Days after receipt of a written invoice from the City
reasonably describing the costs incurred.
IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name
and on its behalf and its seal to be hereunto duly affixed, and Owner has caused this Agreement
to be duly executed in its name and on its behalf, on or as of the date first above written.
G]taN 13rezinkeknt2ps\ContinuingAHONable Housing AgreemenFAntloverPHHALFINAL.tloox Page 6of12
THE CITY OF ANDOVER
By:
Its: Mayor
By:
Its: City Clerk
STATE OF MINNESOTA )
) ss
COUNTY OF )
The foregoing instrument was acknowledged before me this
by
and by
and City Clerk, respectively, of the City of Andover.
Notary Public
day of 2017,
the Mayor
This is a signature page to the Continuing Affordable Housing Agreement by and between the
City of Andover and Presbyterian Homes of Andover, Inc.
GUag Bmnnkakmmds\ContinuingAXONableHousingAgreement-AndovehPHHAIFINALdou Page 7of12
PRESBYTERIAN HOMES OF ANDOVER, INC.
By:
Its
STATE OF MINNESOTA )
) ss
COUNTY OF RAMSEY )
Chief Financial Officer
The foregoing instrument was acknowledged before me this _ day of 2017,
by Mark Meyer, as Chief Financial Officer of Presbyterian Homes of Andover, Inc., on behalf of
the company.
Notary Public
This is a signature page to the Continuing Affordable Housing Agreement by and between the
City of Andover and Presbyterian Homes of Andover, Inc.
G.ZtaH Brezinkak ntratl cntinuingARONableHou¢ingAgreement-Andover-PHHALFINALeov Page 8 of 12
EXHIBIT A
Legal Description of Development Property
The land referred to is situated in the State of Minnesota, County of Anoka, and is described as
follows: Lot 1, Block 1, THE FARMSTEAD
G19apt Smfnkak ntradstConlinuing A%oNable Housing AgrBement-Andover-PHHAL FINAL.doc Page 9 of 12
EXHIBIT B
Compliance Certificate
The undersigned, Presbyterian Homes of Andover, Inc. (Owner), does hereby certify that during
the calendar year immediately preceding the date of this Compliance Certificate (the
"Measurement Year") Owner was in compliance with the requirements for low income
occupancy set forth in Section 3.1 of the Continuing Affordable Housing Agreement dated as of
2017 between the City of Andover and Presbyterian Homes of Andover, Inc.
Enclosed with this Compliance Certificate is a statement provided to Owner by each Project
resident whose occupancy has been counted in determining compliance with Section 3.1, in
which such resident reports income for the calendar year immediately preceding the
Measurement Year in an amount which is not greater the applicable standard for the
Measurement Year. Dated this _ day of 20_
PRESBYTERIAN HOMES OF ANDOVER, INC.
By:
Its
GZtaX Bn tinka oobadsContinuing Affordable Housing Agreemenl-AodovervPHHALHNALEoux Page 10 of 12