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<br />Economic Dt'v\~lopm~!nt Authority Minutes <br />April 8, 1991 <br /> <br />Page 3 <br /> <br />e <br /> <br />Dt:~velopnllmt. FollowiJ\~ several meet ings with HUD, it is Guardian <br />Angels Foundation's illLt~nt to suhmit. all application for subsidized <br />elil\~cly IJullsing UJHk'l' the HUD 202 program. The application will he <br />t'lliillll,d.t.d Hllll ;->ulilllilll'd willtill eight. h('eks 1.0 llIet~L tlH~ 1991 funding <br />eyel,'. Ms. IIlills indit:itll~d LJlid. ,I l'ustdlllioll of support of thl! project <br />may he I'eqnired fl'om the EDA or City COllncil. EDA CODlIllissioners <br />illdjcaLI~d their' SIIPPOl't for the project.. No other assistance was <br />t'elItIt'sted at this time by Ms. MiUs. She agreed to keep t.he F.DA <br />j II fOI'lllf'd tiS 10 t hl~ pl'ogress U f the app] ieation. <br /> <br />I. <br /> <br />Participation in a 1>Ill1nesota HIlIlsine: Finance Ae;ency Mortgage Proe;r'am <br /> <br />e <br /> <br />Bi ~ 1 Ruhin r'evi\~w\~d a program known as the !lOnnesota City Participation <br />Program with the EDA Commissioner's. Under this progr'l:lm, a city has the <br />abi lity to reser've a lIloetgage pool ranging ill size frolD $250,000 to <br />$-+,000,000 that can be Ilsed for first tillle hOllle buyers. This item had <br />1"'~~1i d i scu s~wd by t.he City CCHlne i] at its Apri 1 1 lIIeeti ng and had been <br />refeered to tbe Ecollomic Development Authodt~1 for consideration and <br />action. As wi th other first time home buyer programs, this program is <br />suhjl~ct to El IIlf1xilllllm PlIf'chase price as well flS qualifying buyer <br />ill(:lllllt'S. Tlw city Of' its sponsoring agl~ncy is also required to submit <br />a dt'i"lsiL fee f'llual to 1% of its requested allocation. The JepLlsit fee <br />i." 1<"rItIHh~d 111'011 the sille of mortgilgl~ revenue bonds by the Minnesol.a <br />Bonsing Finance Agency. Commissioner' Tf'alle felt that this program was <br />a ~(lod idea, pad.iudady jf Elk Rivp!' was gcdng to attracl young <br />falllili\~s to the C01ll1ll11l11ty. <br /> <br />COMMTSSTONER HOLMGREN MOVED TO SUBMIT AN APPLICATION UNDER THE <br />MINNESOTA PARTICIPATION PROGRAM IN AN AMOUNT NOT TO EXCEED $1,500,000. <br />CO~jMISS1ONER Tiil\LLE SECmmED THE MOTION. THE MOTION CARRIED 6-0. <br />uJiilmissioner hropuenske abstained from voting stating that he did so <br />Lec(luse as a potential lender, he bad encouraged staff to 1'eviel1 and <br />research this program. <br /> <br />8. :\Ial'1.t:L1ng 0.gtions for Jenne Site <br /> <br />At this time Executive Director Pat Klaers reviel1ed potential changes <br />in tb:~ Purchase Agreemen t by and between the City of Elk River and Irma <br />JCllIlC. The seller had raised issues regarding environmental problems <br />UIl tlte ~)ite and had relluesLed an excepLioll to this language in the <br />Purchase Agreement- regarding this matter. The seller also requested <br />t1lat the outstanding special assessments be paid by the EDA over and <br />abuh~ the statE.>d Purchase Agreement. It was the consensus of t.he EDA <br />l.u!limissiOlwrs to direct staff to maJ,e appropriate revisions to the <br />Purchase Agreement- regarding the environmental issue based on City <br />Attoi<ney advise. No revisions hOh.ever hill be made to the pa~'ment of <br />outstanding special assessments by the EDA. This 110uld be the <br />i'eslJoiisibili ty oi the seller. <br /> <br />e <br /> <br />At this time EDA Commissioners reviel1ed the marketing outline presented <br />by Bill l{UlJIlJ. Staff suggested that folloHing the April 15 public <br />hearing regarding amendments tl) the HF Plan on this matter, staff <br />Hotdd market the 8i te locally to real. estate developers and agents <br />giving them one last opportunity to devel.op the site. Staff, however, <br />