Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
Housing & Redevelopment Authority - HRA-Packet-03-19-2024 Supporting Documents - 03/19/2024
OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY BOARD PACKET March 19, 2024 OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY AGENDA Government Services Center, Otter Tail Lake Room 515 West Fir Avenue, Fergus Falls, MN March 19, 2024 | 11:45am 1. Call Meeting to Order and Roll Call – Chairperson 2. Approval of Agenda 3. Consent Agenda A. Regular Board Meeting Minutes, February 20, 2024 B. Housing Choice Voucher Rental Assistance Program Report February 2024 C. Community Housing Investment Programs Report February 2024 D. Public Housing Program Report February 2024 E. Check Report and February 2024 Financial Reports 4. New Business A. Resolution No. 278 Approving a Purchase and Development Agreement With the City of Dalton B. Resolution No. 279 Authorizing Execution of Project Financing Assistance Agreement with Otter Tail County C. Resolution No. 280 Resolution Authorizing Transfer of Funds For North Fields of Dalton D. Resolution No. 281 Authorizing Execution of Construction Contracts North Fields of Dalton E. Resolution No. 282 Authorizing Creation of North Fields of Dalton LLC F. Resolution No. 283 Committing Leverage Funds for the Pelican Rapids Small Cities Development Program Grant Application 5. Executive Director Report 6. General Discussion – Topics by Commissioners 7. Adjourn The Otter Tail County HRA Board of Commissioners Met for a regular meeting on February 20, 2024 at 11:45 am at the Big Pine/Rush Lake Rooms, 505 South Court St., Fergus Falls, MN Board Members Present: Wayne Johnson, Chairperson Jeff Ackerson Kurt Mortenson Betty Murphy Leland Rogness, Vice Chairperson Others Present: Amy Baldwin, OTC HRA Executive Director Tanya Westra, OTC HRA Housing Program Supervisor Julie Bakken, OTC HRA Accounting Specialist Sarah Schake, CDA Project Manager Paula Grunewald, OTC HRA Administrative Assistant Mitch Harry, HRA Project Manager 1. CALL TO ORDER Chairperson Johnson called the meeting to order at 11:45 am. 2. APPROVAL OF AGENDA Amy Baldwin, Otter Tail County HRA Executive Director, stated that Resolution 274 and 275 were numbered incorrectly and that a new agenda was provided with the corrected resolution numbers. Motion made by Kurt Mortenson, second by Lee Rogness to approve the February 20, 2024 agenda with the changes noted. Motion passed unanimously. 3. APPROVAL OF CONSENT AGENDA ITEMS Motion made by Betty Murphy, second by Jeff Ackerson to approve the Consent Agenda. Motion passed unanimously with no items to be pulled. Director Baldwin noted that the number of vouchers distributed last month was 100 and this month will be 108. These are the highest numbers that she recalls. Commissioners questioned if we had enough funds and Tanya Westra, Housing Program Supervisor, said yes as we have money in reserves from previous unused funds. 4. NEW BUSINESS A. Housing Program & Project Support Request for Proposal Amy Baldwin, OTC HRA Executive Director, reported that an RFP was issued on February 9 for the Housing Program & Project Support Services with responses due at 8:30am, February 20, 2024. One proposal was received from Barbara Dacy, LLC, which was forwarded via email to the Commissioners as well as available as a handout at today’s meeting. Director Baldwin stated that the proposal includes the key components requested, that Barbara Dacy had included in her bid her hourly rate of $65 not to exceed 730 hours or $47,500, and she anticipates remote work. Lee Rogness questioned if we could offer her a position since she was previously employed with the County. Director Baldwin stated she had been a contracted position so OTTERTAIL COUNTY -MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 218-998-8730 @ OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER @ otterta ilcounty.gov LIVE YOUR best life HERE. Pg. 2 there was not a restriction on her being contracted again. Betty Murphy stated that Barbara Dacy knows Otter Tail County and has a good history with Otter Tail County. Director Baldwin requested authorization to offer Barbara Dacy, LLC a contract based on terms outlined. Motion made by Lee Rogness, second by Kurt Mortenson to approve. Motion passed unanimously to enter into an independent contractor agreement with Barbara Dacy, LLC, with the ability to renew after one year. B. Resolution No. 276 Approving Public Housing Radon Mitigation Bid Tanya Westra, OTC HRA Housing Program Supervisor, reported that she received two bids to install radon mitigation systems in the HRA’s Public Housing units and recommends proceeding with Radon Remedies, LLC. They are based out of Fargo and have an office in Fergus Falls. She stated that HUD Capital Fund covers radon mitigation and the bid submitted was $19,500. The HRA would be utilizing $11,897.12 of 2020 Capital Funds and $7,602.88 of 2022 Capital Funds. Westra recommended placing the mitigation system in all 13 units as the Minnesota Department of Health requires when levels are at 4 pCi/L radon mitigation system are needed and for levels 2-3.9 pCi/L an action to reduce the amount of radon in the home is urged. Commissioners questioned the system and were told the systems are low volume, low speed fans and works with existing sump pump pits. They also asked if adding the systems would drop the value of the units and the answer was likely no, as this is a requirement now in all new construction. Motion made by Lee Rogness, second by Jeff Ackerson to approve. Motion passed unanimously. 5. OLD BUSINESS A. North Fields of Dalton: Resolution No. 277 Authorizing Staff to Proceed with Financing and Contract Preparation for Construction of Senior Affordable Housing Amy Baldwin, OTC HRA Executive Director, stated that the North Fields project has been in the works for the past couple years. In 2023, construction pricing for the project had come in significantly over budget. On January 20, 2024, an ad was published in the Daily Journal, posted on the Otter Tail County website, provided to the Lake Region Builders Association and distributed to various contactors to solicit bids for modular construction as well as onsite work for an affordable senior housing project located in Dalton. Deadline for the submission of sealed bids was February 9, 2024. Base construction bids submitted totaled $1,372,407, with an option to update siding for an additional $26,999 in material and labor costs for a total of $1,399,406. With construction (including the siding update), appliance/miscellaneous site expenses, legal/professional services/insurance, permits/fees, marketing/lease up expense, reserves and project contingency, the estimated total for the two triplexes, each consisting of 2- 2BR units and 1- 1 BR unit with garage and porch, was estimated to be $1,664,221. A review of sources of funding was provided, which includes County Support (repaid by HRA levy pledge over 20 years), Statewide Affordable Housing Aid, Housing Trust Fund and other HRA Resources. Rents are projected at 2 BR - $900, and 1 BR - $700. The annual expenses of the development included advertising, legal/administration, water and sewer, trash, maintenance/repairs, snow/lawn care, payment in lieu of taxes, insurance and replacement reserves. Commissioners discussed reserves, potential lease-up date, who would be the potential tenants, inflation, garage size, and bidder engagement. Bids accepted: Modular Construction Northstar Systembuilt $761,567 plus siding upgrade $16,604 Onsite Carpentry Novelty Construction LLC $216,061 plus siding upgrade $10,395 Excavating Leitch Excavating $61,870 Concrete Novelty Construction LLC $157,510 Mechanical and Plumbing Novelty Construction LLC $115,519 Electrical Ohren Electric $59,800 plus $400 for electric vehicle charging Pg. 3 If change orders are needed, it was recommended to poll Commissioners to keep the project going. The Commissioners said they trust the staff decisions. Motion made by Kurt Mortenson, second by Betty Murphy to approve drafting contracts with Northstar Systembuilt, Novelty Construction LLS, Leich Excavating and Ohren Electric. Motion passed unanimously. 6. DISCUSSION A. Publicly Owned Housing Program (POHP) Application Tanya Westra, Housing Program Supervisor stated that this round of POHP loans are funded by General Obligation Bonds in the form of a 20-year deferred, forgivable loan to HRA/CDA/PHAs with the property remaining in public ownership for a 35-year compliance period. Discussions with the HRA Board have taken place regarding the possibility of utilizing RAD Conversion for the Public Housing Units in the future. If we proceed with the POHP application, a RAD conversion would not be possible during the 35-year compliance period. She recommends waiting until the next round of funding is released to see how they will be funded by Minnesota Housing (cash vs GO Bonds) as we may not want this restriction. 7. EXECUTIVE DIRECTOR REPORT Amy Baldwin, OTC HRA Executive Director, presented the 2023 Community Development and Housing Department Annual Report. 8. GENERAL DISCUSSION – TOPICS BY COMMISSIONERS Commissioners discussed Dalton and since we have the numbers to kept it rolling. 9. ADJOURNMENT At 12:51 pm a motion was unanimously carried to adjourn the meeting. ________________________________________________________ ___________________ Secretary/Clerk Date 2/1/2024 3/1/2024 Difference 55,146.00$ 55,121.00$ -$25.00 108 109 1 *HAP Transactions 53,452.00$ 53,629.00$ *Utility Reimbursements 1,694.00$ 1,492.00$ *HAP Adjustment *Utility Adjustment *Portability Tranactions (Out) *Portablilty Admin Fee (Paid) 2/29 3/1 New Admissions 2 End Participation 1 Shop Mode/ARS 0 Ports-Out Paid 0 0 Ports Out Pending 0 3 Ports In Pending 0 0 3/7/2024 Waiting List/To Date 23 Applications in Progress 15 Vouchers Issued 14 Vouchers "On the Strreet"0 ELI%92% Monthly Trend Report*Units Available Units Leased Leasing %Budget % Per Unit $ September 2023 144 94 67.6% 95.3% 434.00$ October 2023 144 94 67.4% 95.0% 426.53$ November 2023 144 94 67.2% 94.8% 428.43$ December 2023 144 98 67.2% 95.0% 452.82$ January 2024 144 100 67.9% 105.3% 496.01$ February 2024 144 108 72.2% 118.7% 510.61$ *Leasing % and Budget % based on cumulative activity during calendar year Per Unit $ is rolling three month average *Portability Utility Reimbursement *Hold Landlord Transaction OTC Section 8 Housing Choice Voucher Rental Assistance Program Summary of Actions February 29, 2024 Program Total Financial Transaction Paid This Month* UML (Unit Months Leased or # of Households) &, OTTE:R 'TAIIL ~, COUNTY -MINNESOTA 218-998-8730 @ HOUSINIG ANID REDEVIEL.OPMIENT AUTHORITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Go,v,e;rn mein,t Services Center 500 Wes:t Fir Avenue Fergus Falls. MN 56537 @ ottertailcounty.gov COMMUNITY HOUSING INVESTMENT PROGRAMS (CHIP) BOARD REPORT February 2024 Program Applications Approved Applications Denied Inspections Conducted Proceed to Work Issued Projects Complete Goal Program End Date Emergency Home Repair Program (EHRP) On‐Going Down Payment Assistance (DPA) On‐Going SCDP: Reuse 1 1 On‐Going Rent Rehab – RR On‐Going Affordable Rental Unit Construction ‐ ARUC On‐Going BATTLE LAKE 09/30/2024 SCDP: Commercial 6 2 1 1 8 SCDP: Homeowner 8 6 8 5 5 20 Residential Owner‐Occupied Leverage (ROHL) 4 4 3 UNDERWOOD 09/30/2024 SCDP: Homeowner 12 4 12 9 8 17 Residential Owner‐Occupied Leverage (ROHL) 5 5 4 218-998-8730 @ HOUSING AND REDEVELOPMENT AUTHORITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 (!) EOU/\L HOUSING OPPORTUNITY @ ottertailcounty.gov PUBLIC HOUSING BOARD REPORT February 2024 Rents Payable $3,976 Rents Collected $3,976 Total Negative Rents $150 Negative Rents Paid $0 Late Fees Charged $0 Late Fees Collected $0 Number of Units Paying Flat/Ceiling Rent 1 Fiscal Year ELI 0% WAITING LIST as of 03/14/2024 2 Bedroom 18 3 Bedroom 3 4 Bedroom 1 VACANCIES UNIT VACATED LEASE SIGNED 3 Bdrm ‐ Henning 08/14/2023 Paperwork submitted to HUD to place in Modernization due to Vacancy status. Stains and odor in carpet began to reappear, flooring has been replaced and bathroom vanity should be installed week of March 18th. Working on 4 applications. 4 Bdrm – New York Mills 01/31/2024 Paperwork submitted to HUD to place in Modernization due to Vacancy status. Repair & replacement work will be completed using Capital Funds. Working on family to verify eligibility. Bid for replacement of flooring, kitchen & bathroom cabinets and countertop are being obtained. 218-998-8730 ® HOUSING AND REDEVELOPMENT AUTHORITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Government Services Center 500 West Fir Avenue Fergus Falls, MN 56537 (5) EOUl\l. HOUSING OPPORTUNITY @ ottertailcounty.gov Doc Num Voided Type Document Recipient 80 No DD Betty Murphy 81 No DD Jeff A Ackerson 82 No DD Kurt A. Mortenson 83 No DD Wayne Johnson 1434 No CHK Kevin Currie 1435 No CHK Language Line Services Inc 1436 No CHK Mitch Harry 1437 No CHK North Central Regional Council NAHRO 1438 No CHK Otter Tail County Treasurer 1439 No CHK MinnKota EnviroServices Inc 1440 No CHK Old Republic Surety Group 1441 No CHK Otter Tail County Recorder's Office Payments $41,819.14 $41,819.14 Count 4 8 12 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register General Revolving (GR) Posted Payments Payment Date Document Description Cleared Amount 02/23/2024 Per Diem/Mileage Feb 24 Yes $102.47 02/23/2024 Per Diem/Mileage Feb 24 Yes $82.37 02/23/2024 Per Diem/Mileage Feb 24 Yes $92.42 02/23/2024 Per Diem/Mileage Feb 24 Yes $102.47 02/09/2024 Jan 2024 Consulting Yes $4,102.11 02/09/2024 Over the Phone Yes $9.45 02/09/2024 Mileage Reimb Jan 24 Yes $133.33 02/09/2024 2024 Membership Renewal No $75.00 02/09/2024 Payroll, Postage, Yes $36,807.12 02/23/2024 Service Tote D1270 Empty 1- 11-24 Yes $35.40 02/23/2024 POS SCHED-CRIME No $231.00 Cleared: 10 $41,513.14 Uncleared: 2 $306.00 Total Payments: 12 $41,819.14 Check (CHK) 02/23/2024 CHIP Recording Fee- Assignment Yes $46.00 Type Summary Document Type Amount Direct Deposit (DD)$379.73 End of Report $41,439.41 Total:$41,819.14 Project Summary Program - Project Deposits General Revolving (GR) - General Revolving $0.00 Total:$0.00 www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 1 3/6/2024 2:13:44 PM Printed by: Julie Bakken 17% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3610 Interest Income 3703/5353/3741/0054 527.04 1,072.86 6,000.00 (4,927.14)18% 3690 Other Revenue MISC 3,500.00 3,500.00 3690.01 SCDP Administration (DEED) - All Communities 12,050.00 50,000.00 (37,950.00)24% 3690.02 SCDP City/Grant Funds - All Communities 80,358.00 907,860.00 (827,502.00)9% 3690.99 Refunds & Reimbursements 612.00 612.00 20,000.00 (19,388.00)3% 3691 Levy Revenue 15,606.68 1,513,771.00 (1,498,164.32)1% 3693.05 CHIP Rental Rehab Revolving Loan Payments 1,590.20 3,792.04 3,792.04 3699 Sale of Property 35,379.79 35,379.79 35,379.79 TOTAL INCOME 38,109.03 152,371.37 2,497,631.00 (2,345,259.63) EXPENSES 4130 Legal 15,000.00 15,000.00 0% 4140 Staff Training 300.00 300.00 9,000.00 8,700.00 3% 4150 Travel 133.33 133.33 1,500.00 1,366.67 9% 4170 Accounting 5,000.00 5,000.00 60,000.00 55,000.00 8% 4171 Audit 16,000.00 16,000.00 0% 4190 Other Administrative Expenses 35.40 35.40 1,000.00 964.60 4% 4190.01 Manuals, Subscriptions 1,000.00 1,000.00 0% 4190.02 Office Supplies 54.58 74.43 1,700.00 1,625.57 4% 4190.03 Postage 304.68 304.68 2,500.00 2,195.32 12% 4190.04 Telephone & Internet 300.00 300.00 0% 4190.05 Dues 75.00 926.20 1,500.00 573.80 62% 4190.06 Advertising 2,000.00 2,000.00 0% 4190.08 Consulting Fees 9.45 9.45 85,000.00 84,990.55 0% 4190.2 Management Fees-OTC Admin 31,147.86 31,147.86 459,350.00 428,202.14 7% 4190.22 Management Fees - Construction Consultant 4,102.11 4,102.11 65,000.00 60,897.89 6% 4210 Board Member Payments 379.73 759.46 4,000.00 3,240.54 19% 4430.1 Misc Contracts - Software 6,540.00 7,700.00 1,160.00 85% 4510 Insurance 231.00 15,027.64 47,000.00 31,972.36 32% 4521 Assessments 80.00 80.00 0% 4570 Housing Choice Voucher Operating Support 30,000.00 30,000.00 0% 4580 Public Housing Operating Support 20,000.00 20,000.00 0% 4590.02 SCDP Lead Based Paint Testing 675.00 (675.00) 4590.03 SCDP Construction (DEED)907,860.00 907,860.00 0% 4590.04 SCDP Recording Fees 92.00 (92.00) 4590.05 SCDP General Expense - Leverage 209,110.00 209,110.00 0% 4591.01 MHFA Administration/Overrun 750.00 (750.00) 4592.01 HOP Demolition/Site Clearance 45,000.00 45,000.00 0% 4593.02 CAP Property Acquisition 25,000.00 25,000.00 0% 4593.03 CAP Consulting Fees 10,000.00 10,000.00 0% 4593.04 CAP Architect/Engineering 45,000.00 45,000.00 0% 4593.05 CAP Legal Fees 5,000.00 5,000.00 0% 4593.06 CAP Affordable Senior Housing Program Leverage 131,031.00 131,031.00 0% 4594 CHIP Down Payment Assistance 55,000.00 55,000.00 0% 4595.01 CHIP Emergency Housing Repair Program (EHRP)46.00 45,000.00 44,954.00 0% 4595.02 CHIP Res Owner Occupied Housing Leverage (ROHL)46.00 92.00 70,000.00 69,908.00 0% 4595.04 CHIP Affordable Rental Unit Constr (ARUC) Program 70,000.00 70,000.00 0% TOTAL EXPENSES 41,819.14 66,015.56 2,447,631.00 2,381,615.44 3% SURPLUS (3,710.11)86,355.81 50,000.00 36,355.81 173% Otter Tail County Housing Redevelopment Authority Operating Statement Two Months Ending 02/29/2024 Program: General Revolving (GR) Project: Consolidated Percent of Year www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 1 3/6/2024 11:59:36 AM Printed by: Julie Bakken Period Amount Balance ASSETS 1111 Cash (5,362.34)1,806,169.41 1111.1 Certificates of Deposit 145,763.96 1111.2 Cash MHFA Loan Acct #0054 0.49 4,084.63 1111.4 Committed for Housing Trust Fund 542,835.00 1113 Cash Rental Rehab 1,651.74 310,832.42 1130.1 Loan Receivable-Rental Rehab 112,295.99 1130.2 Loan Receivable-Down Payment Assistance 79,238.00 1130.3 Loan Receivable-Tax Levy Rehab Provision 268,804.14 1130.4 Loan Receivable-Homeowner Rehab 337,957.94 1130.9 Loan Allowance (606,762.08) 1400.12 Assets Held for Resale 1,051,541.58 1400.5 Accumulated Depreciation (3,487.25) 1400.9 Furn/Equip/Mach - Admin 9,657.00 TOTAL ASSETS (3,710.11)4,058,930.74 LIABILITIES AND SURPLUS LIABILITIES TOTAL LIABILITIES SURPLUS 2700 Income/Expense Clearing Account 421,028.43 2700 Income/Expense Clearing Account (Unclosed 2023) (80.00) 2806 Unrestricted Net Position 1,965,649.55 2806 Unrestricted Net Position (Current Year) (3,710.11)86,355.81 2806 Unrestricted Net Position (Unclosed 2023) 1,585,976.95 TOTAL SURPLUS (3,710.11)4,058,930.74 TOTAL LIABILITIES AND SURPLUS (3,710.11)4,058,930.74 Otter Tail County Housing Redevelopment Authority Balance Sheet February 2024 Program: General Revolving (GR) Project: Consolidated www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 1 3/6/2024 11:59:36 AM Printed by: Julie Bakken Doc Num Voided Type 765 No DD 766 No DD 767 Yes DD 767 No VD 768 No DD 769 No DD 770 No DD 771 No DD 772 No DD 773 No DD 774 No DD 775 No DD 776 No DD 777 No DD 778 No DD 779 No DD 780 No DD 781 No DD 782 No DD 783 No DD 784 No DD 785 No DD 786 No DD 787 No DD 788 No DD 789 No DD 790 No DD 791 No DD 792 No DD 793 No DD 794 No DD 795 No DD 796 No DD 797 No DD 798 No DD 799 No DD 800 No DD 801 No DD 802 No DD 803 No DD 804 No DD 805 No DD 806 No DD 807 No DD 808 No DD 809 No DD 6200 No CHK 6201 No CHK 6202 No CHK 6203 No CHK 6204 No CHK 6205 No CHK02/01/2024 HAP Payment Feb 24 No $461.00 02/01/2024 HAP Payment Feb 24 Yes $357.00 02/01/2024 HAP Payment Feb 24 Yes $952.00 02/01/2024 HAP Payment Feb 24 Yes $1,045.00 02/01/2024 HAP Payment Feb 24 Yes $1,479.00 02/01/2024 HAP Payment Feb 24 Yes $278.00 02/01/2024 HAP Payment Feb 24 Yes $1,285.00 02/01/2024 HAP Payment Feb 24 Yes $637.00 02/01/2024 HAP Payment Feb 24 Yes $2,209.00 02/01/2024 HAP Payment Feb 24 Yes $750.00 02/01/2024 HAP Payment Feb 24 Yes $316.00 02/01/2024 HAP Payment Feb 24 Yes $618.00 02/01/2024 HAP Payment Feb 24 Yes $1,152.00 02/01/2024 HAP Payment Feb 24 Yes $1,969.00 02/01/2024 HAP Payment Feb 24 Yes $294.00 02/01/2024 HAP Payment Feb 24 Yes $429.00 02/01/2024 HAP Payment Feb 24 Yes $250.00 02/01/2024 HAP Payment Feb 24 Yes $385.00 02/01/2024 HAP Payment Feb 24 Yes $496.00 02/01/2024 HAP Payment Feb 24 Yes $188.00 02/01/2024 HAP Payment Feb 24 Yes $517.00 02/01/2024 HAP Payment Feb 24 Yes $672.00 02/01/2024 HAP Payment Feb 24 Yes $324.00 02/01/2024 HAP Payment Feb 24 Yes $804.00 02/01/2024 HAP Payment Feb 24 Yes $357.00 02/01/2024 HAP Payment Feb 24 Yes $4,490.00 02/01/2024 HAP Payment Feb 24 Yes $403.00 02/01/2024 HAP Payment Feb 24 Yes $493.00 02/01/2024 HAP Payment Feb 24 Yes $391.00 02/01/2024 HAP Payment Feb 24 Yes $1,080.00 02/01/2024 HAP Payment Feb 24 Yes $267.00 02/01/2024 HAP Payment Feb 24 Yes $5,955.00 02/01/2024 HAP Payment Feb 24 Yes $596.00 02/01/2024 HAP Payment Feb 24 Yes $145.00 02/01/2024 HAP Payment Feb 24 Yes $565.00 02/01/2024 HAP Payment Feb 24 Yes $550.00 02/01/2024 HAP Payment Feb 24 Yes $807.00 02/01/2024 HAP Payment Feb 24 Yes $450.00 02/01/2024 HAP Payment Feb 24 Yes $1,033.00 02/01/2024 HAP Payment Feb 24 Yes $942.00 02/01/2024 HAP Payment Feb 24 Yes $625.00 02/01/2024 HAP Payment Feb 24 Yes $1,025.00 02/01/2024 HAP Payment Feb 24 Yes $7,401.00 02/01/2024 HAP Payment Feb 24 Yes $400.00 02/01/2024 HAP Payment Feb 24 Yes $345.00 02/01/2024 HAP Payment Feb 24 Yes $700.00 02/01/2024 HAP Payment Feb 24 Yes $439.00 02/05/2024 Account Closed Yes ($225.00) 02/01/2024 HAP Payment Feb 24 Yes $327.00 02/01/2024 HAP Payment Feb 24 Yes $301.00 02/01/2024 HAP Payment Feb 24 Yes $225.00 Payment Date Document Description Cleared Amount 02/01/2024 HAP Payment Feb 24 Yes $529.00 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Housing Choice Vouchers Posted Payments www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 2 3/6/2024 2:19:30 PM Printed by: Julie Bakken Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Housing Choice Vouchers 6206 No CHK 6207 No CHK 6208 No CHK 6209 No CHK 6210 No CHK 6211 No CHK 6212 No CHK 6213 No CHK 6214 No CHK 6215 No CHK 6216 No CHK 6217 No CHK 6218 No CHK 6219 No CHK 6220 No CHK 6221 No CHK 6222 No CHK 6223 No CHK 6224 No CHK 6225 No CHK 6226 No CHK 6227 No CHK 6228 No CHK 6229 No CHK 6230 No CHK 6231 No CHK 6232 No CHK 6233 No CHK Doc Num Voided Type 27703151144 No MO 29129380110 No MO Payments $61,624.00 $61,624.00 Count 45 1 34 2 82Total:$61,922.00 ($225.00) Check (CHK)$18,720.00 Money Order (MO)$298.00 Project Summary Program - Project Deposits Housing Choice Vouchers - $298.00 Total:$298.00 Type Summary Document Type Amount Direct Deposit (DD)$43,129.00 Void Payment (VD) Cleared: 2 $298.00 Uncleared: 0 $0.00 Total Deposits: 2 $298.00 02/21/2024 Payment - Money Order Yes $225.00 02/13/2024 Payment - Money Order Yes $73.00 Posted Deposits Control Date Document Description Cleared Amount 02/09/2024 Payroll Yes $6,478.00 Cleared: 77 $61,073.00 Uncleared: 3 $551.00 Total Payments: 80 $61,624.00 02/01/2024 HAP Util Payment Feb 24 Yes $49.00 02/01/2024 HAP Payment Feb 24 Yes $225.00 02/01/2024 HAP Util Payment Feb 24 Yes $50.00 02/01/2024 HAP Util Payment Feb 24 Yes $34.00 02/01/2024 HAP Util Payment Feb 24 Yes $169.00 02/01/2024 HAP Util Payment Feb 24 Yes $103.00 02/01/2024 HAP Util Payment Feb 24 Yes $77.00 02/01/2024 HAP Util Payment Feb 24 No $36.00 02/01/2024 HAP Util Payment Feb 24 Yes $186.00 02/01/2024 HAP Util Payment Feb 24 Yes $84.00 02/01/2024 HAP Util Payment Feb 24 No $54.00 02/01/2024 HAP Util Payment Feb 24 Yes $12.00 02/01/2024 HAP Util Payment Feb 24 Yes $52.00 02/01/2024 HAP Util Payment Feb 24 Yes $148.00 02/01/2024 HAP Util Payment Feb 24 Yes $120.00 02/01/2024 HAP Util Payment Feb 24 Yes $37.00 02/01/2024 HAP Util Payment Feb 24 Yes $35.00 02/01/2024 HAP Util Payment Feb 24 Yes $108.00 02/01/2024 HAP Util Payment Feb 24 Yes $61.00 02/01/2024 HAP Util Payment Feb 24 Yes $74.00 02/01/2024 HAP Util Payment Feb 24 Yes $67.00 02/01/2024 HAP Util Payment Feb 24 Yes $138.00 02/01/2024 HAP Payment Feb 24 Yes $327.00 02/01/2024 HAP Payment Feb 24 Yes $2,666.00 02/01/2024 HAP Payment Feb 24 Yes $667.00 02/01/2024 HAP Payment Feb 24 Yes $735.00 02/01/2024 HAP Payment Feb 24 Yes $349.00 www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 2 of 2 3/6/2024 2:19:30 PM Printed by: Julie Bakken 17% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3110 Dwelling Rent HAP Repayment 6,787.00 1,776.00 5,011.00 382% 3301 Admin Subsidy 6,500.00 13,000.00 77,347.00 (64,347.00)17% 3301.1 HAP Subsidy 41,956.00 83,912.00 493,508.00 (409,596.00)17% 3450 Fraud Recovery - Admin 50%36.50 36.50 3450.1 Fraud Recovery - HAP 50%36.50 36.50 3610 Investment Income (0062)8.65 19.43 120.00 (100.57)16% 3690.1 Other Revenue HAP 30,000.00 (30,000.00)0% TOTAL INCOME 48,464.65 103,791.43 602,751.00 (498,959.57)17% EXPENSES 4150 Travel 600.00 600.00 0% 4190 Other Admin Expenses (Apps, Service Charges)11.00 33.00 400.00 367.00 8% 4190.01 Manuals, Subscriptions 500.00 500.00 0% 4190.08 Consulting Fees 1,945.00 1,945.00 0% 4190.2 Management Fees-OTC 6,478.00 6,478.00 91,887.00 85,409.00 7% 4715.1 HAP Occupied Units 55,146.00 103,977.00 474,401.00 370,424.00 22% 4715.P HAP-Portability Out (819.00)23,500.00 24,319.00 -3% 4716.P Port Out Admin Fee (48.75)1,200.00 1,248.75 -4% TOTAL EXPENSES 61,635.00 109,620.25 594,433.00 484,812.75 18% SURPLUS (13,170.35)(5,828.82)8,318.00 (14,146.82)-70% Otter Tail County Housing Redevelopment Authority Operating Statement Two Months Ending 02/29/2024 Program: Housing Choice Vouchers Project: Consolidated Percent of Year www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 1 3/6/2024 1:26:34 PM Printed by: Julie Bakken Period Amount Balance ASSETS 1111 Cash Unrestricted (12,872.35)45,979.01 1121 Fraud A/R (148.00)2,253.00 1129 A/R Tenants (150.00)4,236.00 TOTAL ASSETS (13,170.35)52,468.01 LIABILITIES AND SURPLUS LIABILITIES TOTAL LIABILITIES SURPLUS 2700 Inc & Exp Clearing 4,078.69 2805 Restricted Net Position 22,114.50 2805 Restricted Net Position (Current Year) (13,190.00)(19,209.50) 2805 Restricted Net Position (Unclosed 2023) (3,889.26) 2806 Unrestricted Position 29,099.93 2806 Unrestricted Position (Current Year) 19.65 13,380.68 2806 Unrestricted Position (Unclosed 2023) 6,892.97 TOTAL SURPLUS (13,170.35)52,468.01 TOTAL LIABILITIES AND SURPLUS (13,170.35)52,468.01 Otter Tail County Housing Redevelopment Authority Balance Sheet February 2024 Program: Housing Choice Vouchers Project: Consolidated www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 1 3/6/2024 1:26:33 PM Printed by: Julie Bakken Doc Num Voided Type #01-00000621-00-0 Jan 24 No INV #01-00041004-00-6 Jan 24 No INV #01-00041101-00-0 Jan 24 No INV #01-00041152-00-6 Jan 24 No INV #991 721 5394 4 Feb 24 No INV 7335 No CHK 7336 No CHK 7337 No CHK 7338 No CHK 7339 No CHK 7340 No CHK 7341 No CHK 7342 No CHK 7343 No CHK 7344 No CHK 7345 No CHK Doc Num Voided Type 1016 No CHK 1062 No CHK 1065 No CHK 1228 No CHK 3654 No CHK 5634 No CHK 82512911 No CHK 22-05328025 No MO 28647074654 No MO Payments $49,878.66 $49,878.66 Count 5 18 2 25 End of Report $51,984.95 Money Order (MO)$618.15 Total:$53,812.90 Project Summary Program - Project Deposits Public Housing - Family $3,934.24 Total:$3,934.24 Type Summary Document Type Amount Invoice (INV)$1,209.80 Check (CHK) 02/02/2024 Payment - Money Order Yes $600.00 Cleared: 9 $3,934.24 Uncleared: 0 $0.00 Total Deposits: 9 $3,934.24 02/02/2024 Payment - Check - State of MN Yes $314.00 02/08/2024 Payment - Money Order Yes $18.15 02/23/2024 Payment - Check Yes $500.00 02/23/2024 Payment - Check Yes $1,023.82 02/02/2024 Payment - Check Yes $553.00 02/02/2024 Payment - Check Yes $619.90 02/02/2024 Payment - Check Yes $240.00 02/08/2024 Payment - Check Yes $65.37 Posted Deposits Control Date Document Description Cleared Amount 02/23/2024 Materials-504 Henning No $4,761.62 Cleared: 14 $45,044.54 Uncleared: 2 $4,834.12 Total Payments: 16 $49,878.66 02/23/2024 Solar Salt Yes $11.40 02/23/2024 Curtain Rods Yes $148.08 02/09/2024 Prof Services-Eviction 11/1/23-1/22/24 Yes $8,443.50 02/09/2024 Mileage Reimb 02/01/24 Yes $45.20 02/09/2024 Payroll Yes $7,770.65 02/09/2024 2024 Blanket Coverage Renewal Yes $26,073.17 02/09/2024 Air Register - Henning Yes $26.67 02/09/2024 Water, Gas, Sewer Yes $843.69 02/09/2024 Replaced door knob, made keys, etc.Yes $370.88 02/09/2024 Labor/Parts Replace Relay - NYM Yes $174.00 02/01/2024 Water, Electric, Gas, Sewer Yes $408.82 02/09/2024 Gas No $72.50 02/01/2024 Water, Electric, Gas, Sewer Yes $250.00 02/01/2024 Water, Electric, Gas, Sewer Yes $300.53 Payment Date Document Description Cleared Amount 02/01/2024 Water, Electric, Gas, Sewer Yes $177.95 Otter Tail County Housing Redevelopment Authority General Ledger Cash Payment/Receipt Register Public Housing Posted Payments www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 1 3/6/2024 3:36:10 PM Printed by: Julie Bakken 8% Period YTD Annual Remaining Amount Amount Budget Budget INCOME 3110 Dwelling Rental 3,976.00 7,083.00 32,000.00 (24,917.00)22% 3401.1 HUD Operating Subsidy 4,587.50 7,941.00 45,000.00 (37,059.00)18% 3401.2 HUD Capital Funds-Operations/Admin 157.00 157.00 7,000.00 (6,843.00)2% 3401.3 HUD Capital Funds-Project 33,000.00 (33,000.00)0% 3610 Interest Income (5673/0070)27.72 59.61 200.00 (140.39)30% 3690 Other Income (NSF, Late Fee, GR Support)24.00 21,000.00 (20,976.00)0% 3690.1 Water Charge Income 496.26 1,076.96 6,300.00 (5,223.04)17% 3690.2 Electric Charge Income 214.44 985.19 12,000.00 (11,014.81)8% 3690.3 Gas Charge Income 1,084.05 2,079.60 11,000.00 (8,920.40)19% 3690.31 Sewer Charge Income 601.90 1,278.62 7,350.00 (6,071.38)17% TOTAL INCOME 11,144.87 20,684.98 174,850.00 (154,165.02)12% EXPENSES 4130 Legal 8,443.50 8,443.50 750.00 (7,693.50)1126% 4140 Staff Training 2,000.00 2,000.00 0% 4150 Travel 45.20 45.20 500.00 454.80 9% 4171 Audit 2,200.00 2,200.00 0% 4190 Other Admin Expenses (Reports, Apps)200.00 200.00 0% 4190.01 Manuals, Subscriptions 500.00 500.00 0% 4190.06 Advertising 200.00 200.00 0% 4190.08 Consulting Fees 1,950.00 1,950.00 0% 4190.2 Management Fees-OTC 7,770.65 7,770.65 25,000.00 17,229.35 31% 4310 Water 678.46 678.46 6,400.00 5,721.54 11% 4320 Electric 811.04 811.04 12,250.00 11,438.96 7% 4330 Gas 1,217.96 1,217.96 11,500.00 10,282.04 11% 4331 Sewer 769.10 769.10 7,500.00 6,730.90 10% 4400 Maintenance - Tools & Equip 500.00 500.00 0% 4420 Maintenance - Materials 4,936.37 4,936.37 5,500.00 563.63 90% 4430 Maintenance - Contracts 556.28 556.28 15,000.00 14,443.72 4% 4431 Garbage and Trash Removal Contracts 500.00 500.00 0% 4510 Insurance 26,073.17 26,073.17 25,000.00 (1,073.17)104% 4520 PILOT (3,394.75)3,900.00 7,294.75 -87% 4521 Assessments 1,400.00 1,400.00 0% 4570 Collection Loss 500.00 500.00 0% 4580 Interest Expense (on Security Deposits)300.00 300.00 0% 4600 Capital Fund Projects 33,000.00 33,000.00 0% 4610 Extraordinary Maintenance 3,500.00 3,500.00 0% TOTAL EXPENSES 51,301.73 47,906.98 160,050.00 112,143.02 30% SURPLUS (40,156.86)(27,222.00)14,800.00 (42,022.00)-184% Otter Tail County Housing Redevelopment Authority Operating Statement Two Months Ending 02/29/2024 Program: Public Housing Project: Consolidated Percent of Year www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 1 3/6/2024 1:49:09 PM Printed by: Julie Bakken Period Amount Balance ASSETS 1111 Cash (39,906.32)103,525.99 1114 Tenant Security Deposit Cash 9,173.50 1122 A/R Tenants 415.69 3,172.81 1122.1 Allowance for Doubtful Accts (200.00) 1400.5 Accumulated Depreciation (1,112,431.70) 1400.6 Land 32,990.31 1400.7 Buildings 1,661,869.49 TOTAL ASSETS (39,490.63)698,100.40 LIABILITIES AND SURPLUS LIABILITIES 2114 Tenant Security Deposits 9,173.50 2119 Accounts Payable (418.66) 2119.1 A/P Admin 418.66 2240 Tenants Prepaid Rent 666.23 2,723.99 TOTAL LIABILITIES 666.23 11,897.49 SURPLUS 2700 Income/Expense Clearing Account (63,672.49) 2700 Income/Expense Clearing Account (Current Year) (40,156.86)(27,222.00) 2700 Income/Expense Clearing Account (Unclosed 2022) 0.01 2700 Income/Expense Clearing Account (Unclosed 2023) 4,475.52 2802 Invested in Capital Assets, Net of Related Debt 679,466.94 2806 Unrestricted Net Position 93,154.93 TOTAL SURPLUS (40,156.86)686,202.91 TOTAL LIABILITIES AND SURPLUS (39,490.63)698,100.40 Otter Tail County Housing Redevelopment Authority Balance Sheet February 2024 Program: Public Housing Project: Consolidated www.pha-web.com © 2024 Management Computer Services, Inc. (MCS) Page 1 of 1 3/6/2024 1:49:08 PM Printed by: Julie Bakken OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION March 19, 2024 BOARD MEETING DATE AGENDA ITEM #4A Amy Baldwin 03/14/2024 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 278 Approving A Purchase And Development Agreement With The City Of Dalton, Minnesota PROPOSED REQUEST/JUSTIFICATION In accordance with authorization provided by the HRA Board in Resolution No. 277, the Purchase and Development Agreement with the City of Dalton is recommended for adoption. The HRA is purchasing the subject property for $1 and will construct the “Affordable Housing Project”, which has been referred to as “North Fields of Dalton”. Two triplexes are proposed to be constructed, with a total of four two-bedroom units and two one-bedroom units. The City of Dalton is responsible for surveying and platting, delivering clear title, and paying for associated title and other closing costs. The City is also responsible for installing the public infrastructure within in a timeline necessary to serve the proposed development. Upon closing and upon execution of the construction contract, the HRA is responsible for completing the proposed construction prior to the “completion date”, which is currently projected to be December 31, 2025, subject to “unavoidable delays”. There may be the necessity to make changes to the document prior to closing. The proposed resolution authorizes the Board Chair and Executive Director to execute the Agreement and also contains the resolve statement (#2) authorizing changes, if so determined. Staff recommends approval contingent upon the Otter Tail County Board of Commissioners approving financial support and allocation of the Statewide Affordable Housing Aid at their regular meeting on March 26, 2024. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 03/14/2024 ATTACHMENT LIST: Resolution No. 278 and Exhibit A FINANCIAL IMPLICATIONS: BUDGETED: X YES NO FUNDING: HRA Funds and County Assistance COMMENTS RESOLUTION NO. 278 APPROVING A PURCHASE AND DEVELOPMENT AGREEMENT WITH THE CITY OF DALTON, MINNESOTA WHEREAS, the Housing and Redevelopment Authority in and for Otter Tail County (the "HRA"), is intending to undertake the acquisition and construction of two triplex buildings, totaling six units of affordable senior housing (the "Project") to be located on certain real property currently owned by the City of Dalton, Minnesota (the "City"); and WHEREAS, the acquisition and development of the Project is proposed to be pursuant to a Purchase and Development Agreement, by and between the HRA and the City (the "Agreement"), the form of which has been submitted to the Board of Commissioners for review and approval; NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority in and for Otter Tail County, Minnesota, that: 1. The Board of Commissioners of the HRA hereby approves the Agreement, in substantially the form submitted, and the Board Chair and Executive Director are hereby authorized and directed to execute the Agreement on behalf of the HRA. 2. The approval hereby given to the Agreement includes approval of such additional details therein as may be necessary and appropriate, and such modifications thereof, deletions therefrom, and additions thereto, as may be necessary and appropriate and approved by HRA officials, staff, consultants, and legal counsel. The execution of the Agreement by the appropriate officer or officers of the HRA shall be conclusive evidence of the approval of the Agreement in accordance with the terms hereof. Upon the motion of _________________, seconded by ____________ and passed on a ____________ vote, the above resolution is hereby adopted by the Otter Tail County Housing and Redevelopment Authority Board of Commissioners. Adopted this 19th day of March, 2024. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 71913078v1 PURCHASE AND DEVELOPMENT AGREEMENT BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE COUNTY OF OTTER TAIL, MINNESOTA AND THE CITY OF DALTON, MINNESOTA This document drafted by: Taft Stettinius & Hollister LLP (MLI) 2200 IDS Center, 80 South 8th Street Minneapolis, Minnesota 55402 Exhibit A 71913078v1 i TABLE OF CONTENTS Page Article I DEFINITIONS ................................................................................................................ 1 Section 1.1 Definitions ......................................................................................... 1 Article II REPRESENTATIONS AND WARRANTIES .............................................................. 2 Section 2.1 Representations and Warranties of the HRA ..................................... 2 Section 2.2 Representations and Warranties of the City ...................................... 2 Article III CONVEYANCE OF PROPERTY ............................................................................... 3 Section 3.1 Status of Property .............................................................................. 3 Section 3.2 Closing ............................................................................................... 3 Section 3.3 Conditions Precedent to Conveyance of the Development Property ............................................................................................. 3 Article IV UNDERTAKINGS BY HRA AND CITY ................................................................... 3 Section 4.1 Property ............................................................................................. 3 Section 4.2 Project ................................................................................................ 4 Section 4.3 Legal and Administrative Expenses .................................................. 4 Article V EVENTS OF DEFAULT ............................................................................................... 4 Section 5.1 Events of Default Defined ................................................................. 4 Section 5.2 Remedies on Default ......................................................................... 4 Section 5.3 No Remedy Exclusive ....................................................................... 4 Section 5.4 No Implied Waiver ............................................................................ 4 Article VI ADDITIONAL PROVISIONS ..................................................................................... 5 Section 6.1 Conflicts of Interest ........................................................................... 5 Section 6.2 Titles of Articles and Sections ........................................................... 5 Section 6.3 Notices and Demands ........................................................................ 5 Section 6.4 Counterparts ...................................................................................... 6 Section 6.5 Law Governing .................................................................................. 6 Section 6.6 Term .................................................................................................. 6 Section 6.7 Assignability of Agreement ............................................................... 6 EXHIBIT A LEGAL DESCRIPTION ................................................................................. A-1 EXHIBIT B WARRANTY DEED ...................................................................................... B-1 71913078v1 1 PURCHASE AND DEVELOPMENT AGREEMENT THIS PURCHASE AND DEVELOPMENT AGREEMENT (this "Agreement"), made as of the ____ day of _____________, 2024 (the "Effective Date"), by and between the Housing and Redevelopment Authority in and for the County of Otter Tail (the "HRA"), a public body corporate and politic duly organized and existing under the laws of the State of Minnesota, and the City of Dalton, Minnesota (the "City"), a municipal corporation duly organized and existing under the laws of the State of Minnesota, each being a "Party", and, collectively, the "Parties", to this Agreement; WITNESSETH: WHEREAS, the HRA and the City believe that the acquisition of the Development Property (as hereinafter defined), and the acquisition, development, and construction of the Project (as hereinafter defined), and the fulfillment of this Agreement are vital, and are in the best interests of the County of Otter Tail, Minnesota (the "County"), the City, the HRA, the health, safety, morals and welfare of the residents of the County and the City, and in accordance with the public purpose and provisions of the applicable state and local laws and requirements under which the Project has been undertaken and is being assisted; NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, the sufficiency of which is acknowledged and agreed to by the parties, each of them does hereby covenant and agree with the other as follows: 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: Agreement means this Purchase and Development Agreement, dated ______________, 2024 by and between the HRA and the City as the same may be from time to time modified, amended or supplemented; City means the City of Dalton, Minnesota; Closing Date means ________________; County means Otter Tail County, Minnesota; Deed means the deed in the form of Exhibit B attached hereto; Development Property means that certain real property legally described in Exhibit A, attached to this Agreement, to be purchased by the HRA; Effective Date means ____________, 2024; 71913078v1 2 Event of Default means any of the events described in Section 5.1 hereof; HRA means the Housing and Redevelopment Authority in and for the County of Otter Tail, Minnesota; Legal and Administrative Expenses means the reasonable fees and expenses incurred by the HRA in connection with the preparation of this Agreement and the costs associated with the purchase and sale of the Development Property; Permitted Encumbrances means the provisions of the Deed and this Agreement: reservations of minerals or mineral rights to the State; public utility, roadway and other easements which will not adversely affect the Development Property and use thereof; building laws, regulations and ordinances consistent with the improvements on the Development Property; restrictions, covenants and easements of record that do not materially adversely affect the Development Property and use of the improvements thereon; Project means the acquisition of the Development Property, site demolition, removal and preparation, and the construction of two triplex buildings, totaling six units of affordable senior housing, on the Development Property, by the HRA; Purchase Agreement is defined in Section 3.1 hereof; State means the State of Minnesota; Term means the period in which this Agreement shall remain in effect, commencing on the Effective Date and continuing until the earlier of (i) the completion of the Project, or (ii) the date this Agreement is terminated or rescinded in accordance with its terms; Unavoidable Delays means delays, outside the control of the Party claiming its occurrence, which are the direct result of strikes, other labor troubles, unusually severe or prolonged bad weather, acts of God, fire or other casualty to the Development Property, litigation commenced by third parties which, by injunction or other similar judicial action or by the exercise of reasonable discretion, directly results in delays, or acts of any federal, State or local governmental unit (other than the HRA or the City) which directly result in delays. ARTICLE II REPRESENTATIONS AND WARRANTIES Section 2.1 Representations and Warranties of the HRA. The HRA represents and warrants that it is a public body, corporate and politic, duly organized, and has the power to enter into this Agreement and to carry out its obligations hereunder. Section 2.2 Representations and Warranties of the City. The City represents and warrants that it is a municipal corporation, duly organized, and has the power to enter into this Agreement and to carry out its obligations hereunder. 71913078v1 3 ARTICLE III CONVEYANCE OF PROPERTY Section 3.1 Status of Property. The Development Property is owned by the City. On the Closing Date, the City shall convey the Development Property to the HRA, pursuant to a purchase agreement to be drafted by the County or City's attorney (the "Purchase Agreement"), and this Agreement. Section 3.2 Closing. (1) Closing on the conveyance of the Development Property to the HRA shall occur on the Closing Date after all of the conditions precedent contained in Section 3.3 have been satisfied or waived. (2) At the closing on the conveyance of the Development Property, the City shall deliver to the HRA: (i) a deed substantially in the form of the Deed, attached hereto as Exhibit B, duly executed and acknowledged conveying to the HRA marketable title to the Development Property subject only to Permitted Encumbrances; and (ii) a Seller's Affidavit, in customary form, relative to judgments, federal tax liens, mechanic's liens and outstanding interests in the Development Property. (3) The purchase price of the Development Property is $1. At the closing on the conveyance of the Development Property the HRA shall deliver to the City the purchase price of $1. (4) The City shall pay all closing costs associated with the conveyance of the Development Property, which may include, but is not limited to, State deed tax, the cost of obtaining a title insurance commitment and a title insurance policy, and closing costs. Section 3.3 Conditions Precedent to Conveyance of the Development Property. The City's obligation to sell and the HRA's obligation to purchase the Development Property shall be subject to satisfaction of the conditions precedent as contained in this Agreement and the Purchase Agreement. If the conditions precedent to the conveyance of the Development Property have not been satisfied by the Closing Date, the HRA shall have the right to terminate this Agreement by giving written notice of termination to the City, upon which this Agreement shall terminate and the City shall execute an instrument in recordable form evidencing such termination. ARTICLE IV UNDERTAKINGS BY HRA AND CITY Section 4.1 Property. The City shall convey and the HRA shall purchase the Development Property, subject to the terms and conditions of the Purchase Agreement and this Agreement. 71913078v1 4 Section 4.2 Project. The HRA shall undertake the Project. The HRA shall commence work within thirty (30) days after the Closing Date, and barring Unavoidable Delays, shall complete the Project by December 31, 2025. The HRA shall pay for the costs of the Project. The City shall construct and install public improvements (water, sewer, etc.) to the extent necessary to service the completed Project, and pay for the costs thereof. The City shall also be responsible for the replatting, zoning, and other similar actions and processes of the City, related to and required for the sale of the Development Property and the completion of the Project. Section 4.3 Legal and Administrative Expenses. The HRA shall pay for all Legal and Administrative Expenses. ARTICLE V EVENTS OF DEFAULT Section 5.1 Events of Default Defined. Failure of either Party to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement shall be an "Event of Default". Section 5.2 Remedies on Default. Whenever any Event of Default referred to in Section 5.1 occurs and is continuing, the non-defaulting Party, as specified below, may take any one or more of the following actions after the giving of thirty (30) days' written notice to the defaulting Party, but only if the Event of Default has not been cured within said thirty (30) days: (1) The non-defaulting Party may suspend its performance under this Agreement until it receives assurances from the defaulting Party, deemed adequate by the non-defaulting Party, that the defaulting Party will cure its default and continue its performance under this Agreement. (2) The non-defaulting Party may cancel and rescind this Agreement. (3) The non-defaulting Party 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 the defaulting Party under this Agreement. Section 5.3 No Remedy Exclusive. No remedy herein conferred upon or reserved to either Party is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. Section 5.4 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. 71913078v1 5 ARTICLE VI ADDITIONAL PROVISIONS Section 6.1 Conflicts of Interest. No member of the governing body or other official of either Party shall have any financial interest, direct or indirect, in this Agreement, the Development Property or 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 either Party shall be personally liable to either Party in the event of any default or breach by either Party or either Party's 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, in the case of the HRA, is addressed to or delivered personally to: The Otter Tail County Housing and Redevelopment Authority Attention: Executive Director Government Services Center 500 W. Fir Ave Fergus Falls, MN 56537 with a copy to: Taft Stettinius & Hollister LLP Attention: Mary Ippel 2200 IDS Center 80 South 8th Street Minneapolis, MN 55402 in the case of the City is addressed to or delivered personally to the City at: City of Dalton 107 Main Street East Dalton, MN 56324 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. 71913078v1 6 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 Governing. This Agreement will be governed and construed in accordance with the laws of the State. Section 6.6 Term. This Agreement shall remain in effect for the Term. Section 6.7 Assignability of Agreement. This Agreement may only be assigned in writing, and with the written consent of the HRA and the City. 71913078v1 S-1 IN WITNESS WHEREOF, the HRA has caused this Agreement to be duly executed in its name and on its behalf and its seal to be hereunto duly affixed, and the City has caused this Agreement to be duly executed on its behalf, on or as of the date first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE COUNTY OF OTTER TAIL, MINNESOTA By:____________________________ Its: Board Chair By:____________________________ Its: Executive Director This is a signature page to the Purchase and Development Agreement by and between the Housing and Redevelopment Authority in and for the County of Otter Tail, Minnesota, and the City of Dalton, Minnesota. 71913078v1 S-2 CITY OF DALTON, MINNESOTA By: ____________________________________ Its: Mayor By: ____________________________________ Its: Administrator-Clerk-Treasurer This is a signature page to the Purchase and Development Agreement by and between the Housing and Redevelopment Authority in and for the County of Otter Tail, Minnesota, and the City of Dalton, Minnesota. 71913078v1 A-1 EXHIBIT A LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY LOT ONE (1), BLOCK ONE (1), NORTHFIELD’S ADDITION OF DALTON, OTTER TAIL COUNTY, MINNESOTA 71913078v1 B-1 EXHIBIT B WARRANTY DEED THIS INDENTURE, between the Housing and Redevelopment Authority in and for the County of Otter Tail, Minnesota, a public body corporate and politic duly organized and existing under the laws of the State of Minnesota (the "Grantee"), and the City of Dalton, Minnesota, a municipal corporation duly organized and existing under the laws of the State of Minnesota (the "Grantor"). WITNESSETH, that Grantor, in consideration of the sum of ONE AND 00/100 DOLLAR ($1.00) and other good and valuable consideration, the receipt whereof is hereby acknowledged, does hereby convey and warrant to the Grantee, its successors and assigns forever, all the tract or parcel of land lying and being in the County of Otter Tail and State of Minnesota described as follows, to-wit (such tract or parcel of land is hereinafter referred to as the "Property"): (See Exhibit 1) To have and to hold the same, together with all the hereditaments and appurtenances thereunto belonging in any way appertaining, to the said Grantee, its successors and assigns, forever, subject to the following exceptions: (Insert any exceptions to title) Provided: SECTION 1. It is understood and agreed that this Deed is subject to the covenants, conditions, restrictions and provisions of that certain Purchase and Development Agreement entered into between the Grantor and Grantee on the ____ day of ____________, 2024, as may be amended or modified in writing from time to time by Grantor and Grantee, (hereafter referred to as the "Agreement"). SECTION 2. The Grantee agrees for itself and its successors and assigns to or of the Property or any part thereof, hereinbefore described, that the Grantee and such successors and assigns shall comply with all covenants contained in the Agreement. SECTION 3. This Deed is also given subject to: (a) Provision of the ordinances, building and zoning laws of the City of Dalton, Minnesota, state and federal laws and regulations in so far as they affect this real estate. (b) Taxes payable subsequent to the date of this conveyance. 71913078v1 B-2 SECTION 4. Grantor certifies that it does not know of any wells on the subject property. IN WITNESS WHEREOF, the Grantor has caused this Deed to be duly executed on its behalf by its Mayor and Administrator-Clerk-Treasurer this ____ day of _________, 2024. (SEAL) CITY OF DALTON, MINNESOTA By: ____________________________________ Its: Mayor By: ____________________________________ Its: Administrator-Clerk-Treasurer STATE OF MINNESOTA ) ) SS. COUNTY OF OTTER TAIL ) The foregoing instrument was acknowledged before me on this ____ day of ____________, 2024, by ________________ and _______________, the Mayor and Administrator-Clerk-Treasurer of the City of Dalton, Minnesota, a municipal corporation, duly organized and existing under the laws of the State of Minnesota. _______________________________________ Notary Public 71913078v1 B-3 EXHIBIT 1 LEGAL DESCRIPTION LOT ONE (1), BLOCK ONE (1), NORTHFIELD’S ADDITION OF DALTON, OTTER TAIL COUNTY, MINNESOTA OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION March 19, 2024 BOARD MEETING DATE AGENDA ITEM #4B Amy Baldwin 03/14/2024 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 279 Authorizing Execution of Project Financing Assistance Agreement with Otter Tail County PROPOSED REQUEST/JUSTIFICATION The HRA and County Board committees discussed the proposed financial assistance from the County in 2023. It was determined that financial assistance from the County is the most efficient approach to provide financing for the proposed development. The proposed agreement states that the County will provide $850,000 to be repaid over 20 years via annual allocation of the Special Benefit Levy, including 2% interest. The assistance will provide 51% of estimated total project cost of approximately, $1,664,221. Staff recommends approval, subject to the approval by the County Board on March 26, 2024. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 03/14/2024 ATTACHMENT LIST: Resolution No. 279 and Exhibit A FINANCIAL IMPLICATIONS: BUDGETED: X YES NO FUNDING: HRA Funds and County Assistance COMMENTS RESOLUTION NO. 279 RESOLUTION APPROVING A PROJECT FINANCING ASSISTANCE AGREEMENT WITH OTTER TAIL COUNTY WHEREAS, the Housing and Redevelopment Authority in and for Otter Tail County (the "HRA"), is intending to undertake the acquisition and construction of two triplex buildings, totaling six units of affordable senior housing (the "Project") and has requested assistance from Otter Tail County (the "County") to help pay for certain costs of the Project; and WHEREAS, Minnesota Statutes, Chapter 469 (the "Act"), and particularly Section 469.041, authorizes the County to provide such assistance; and WHEREAS, such assistance from the County has been proposed to be provided to the HRA pursuant to a Project Financing Assistance Agreement (the "Agreement"), the form of which has been submitted to the Board of Commissioners for review and approval; NOW THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority in and for Otter Tail County, Minnesota, that: 1. The Board of Commissioners of the HRA hereby approves the Agreement, in substantially the form submitted, and the Board Chair and Executive Director are hereby authorized and directed to execute the Agreement on behalf of the HRA. 2. The approval hereby given to the Agreement includes approval of such additional details therein as may be necessary and appropriate, and such modifications thereof, deletions therefrom, and additions thereto, as may be necessary and appropriate and approved by County and HRA officials, staff, consultants, and legal counsel. The execution of the Agreement by the appropriate officer or officers of the HRA shall be conclusive evidence of the approval of the Agreement in accordance with the terms hereof. Upon the motion of _________________, seconded by ____________ and passed on a ____________ vote, the above resolution is hereby adopted by the Otter Tail County Housing and Redevelopment Authority Board of Commissioners. Adopted this 19th day of March, 2024. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 128078898v1 PROJECT FINANCING ASSISTANCE AGREEMENT BY AND BETWEEN THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE COUNTY OF OTTER TAIL, MINNESOTA AND THE COUNTY OF OTTER TAIL, MINNESOTA This document drafted by: Taft Stettinius & Hollister LLP 2200 IDS Center, 80 South 8th Street Minneapolis, Minnesota 55402 Exhibit A 128078898v1 PROJECT FINANCING ASSISTANCE AGREEMENT This PROJECT FINANCING ASSISTANCE AGREEMENT (this "Agreement"), made as of the ____ day of _____________, 2024 (the "Effective Date"), by and between the Housing and Redevelopment Authority in and for the County of Otter Tail, Minnesota (the "HRA"), and Otter Tail County, Minnesota (the "County"), each being a "Party", and, collectively, the "Parties", to this Agreement; WITNESSETH: WHEREAS, the HRA intends to undertake a certain Project (as defined herein), and is seeking financial assistance from the County; and WHEREAS, Minnesota Statutes, Chapter 469 (the "Act"), and particularly Section 469.041, authorizes the County to provide such assistance; and WHEREAS, the Project consists of the acquisition and construction of two triplex buildings, totaling six units of affordable senior housing to be located within the County (the "Project"); and WHEREAS, the HRA and the County believe that the development and construction of the Project and the fulfillment of this Agreement are vital, and are in the best interests of the County and the HRA, the health, safety, morals and welfare of the residents of the County, and in accordance with the public purpose and provisions of the applicable state and local laws and requirements under which the Project has been undertaken; and WHEREAS, due to the benefit of the Project to the County, the County desires to assist the Project, pursuant to the terms and conditions of this Agreement: NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, the sufficiency of which is acknowledged and agreed to by the parties, each of them does hereby covenant and agree with the other as follows: Section 1 Representations and Warranties. The HRA represents and warrants that it is a public body, corporate and politic, duly organized, and has the power to enter into this Agreement and to carry out its obligations hereunder. The County represents and warrants that it is a political subdivision of the State of Minnesota, and has the power to enter into this Agreement and to carry out its obligations hereunder. Section 2 HRA Obligations. The HRA shall construct the Project according to all applicable laws and ordinances. The HRA shall use the assistance provided by the County to pay the costs of the Project. The HRA pledges to use its authority to levy the HRA special benefit tax, pursuant and subject to the Act, in the years and the amounts as shown on the schedule attached hereto as Exhibit A. Such taxes to be levied and collected will be used to reimburse the County for its assistance to the Project. 128078898v1 2 Section 3 County Obligations. The County agrees to provide financial assistance to the HRA to pay for a portion of the costs of the Project. The County shall provide the HRA $850,000 within ____ days of the execution of this Agreement. Section 4 Legal and Administrative Expenses. The HRA shall pay for all legal and administrative expenses incurred by the HRA in regards to this Agreement. Section 5 Events of Default Defined. Failure of either Party to observe or perform any covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement shall be an "Event of Default"; provided, however, that both of the Parties understand and acknowledge that the schedule attached hereto as Exhibit A, showing the years and amounts of the HRA special benefit tax to be levied, contains estimates only, and the actual levy amounts may differ from the stated amounts on Exhibit A, and the Parties agree that any such actual difference between the estimates shown on Exhibit A and the actual amounts to be levied shall not constitute an Event of Default hereunder. Section 6 Remedies on Default. Whenever any Event of Default referred to in Section 5 occurs and is continuing, the non-defaulting Party, as specified below, may take any one or more of the following actions after the giving of thirty (30) days' written notice to the defaulting Party, but only if the Event of Default has not been cured within said thirty (30) days: (1) The non-defaulting Party may suspend its performance under this Agreement until it receives assurances from the defaulting Party, deemed adequate by the non-defaulting Party, that the defaulting Party will cure its default and continue its performance under this Agreement. (2) The non-defaulting Party 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 the defaulting Party under this Agreement. Section 7 No Remedy Exclusive. No remedy herein conferred upon or reserved to either Party is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. Section 8 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 9 Conflicts of Interest. No member of the governing body or other official of either Party shall have any financial interest, direct or indirect, in this Agreement or 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 128078898v1 3 of any corporation, partnership or association in which he or she is directly or indirectly interested. No member, official or employee of either Party shall be personally liable to either Party in the event of any default or breach by either Party or either Party's successor or on any obligations under the terms of this Agreement. Section 10 Titles of Articles and Sections. Any titles of the several parts 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 11 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, in the case of the HRA, is addressed to or delivered personally to: The Otter Tail County Housing and Redevelopment Authority Attention: Executive Director Government Services Center 500 W. Fir Ave Fergus Falls, MN 56537 with a copy to: Taft Stettinius & Hollister LLP Attention: Dan Burns 2200 IDS Center 80 South 8th Street Minneapolis, MN 55402 in the case of the County is addressed to or delivered personally to the County at: Otter Tail County Attention: County Administrator Government Services Center 500 W. Fir Ave Fergus Falls, MN 56537 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 12 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 13 Law Governing. This Agreement will be governed and construed in accordance with the laws of the State of Minnesota. Section 14 Term. This Agreement shall remain in effect until December 31, 2045. 128078898v1 S-1 IN WITNESS WHEREOF, the HRA has caused this Agreement to be duly executed in its name and on its behalf and its seal to be hereunto duly affixed, and the County has caused this Agreement to be duly executed on its behalf, on or as of the date first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE COUNTY OF OTTER TAIL, MINNESOTA By:____________________________ Its: Board Chair By:____________________________ Its: Executive Director This is a signature page to the Project Financing Assistance Agreement by and between the Housing and Redevelopment Authority in and for the County of Otter Tail, Minnesota, and Otter Tail County, Minnesota. 128078898v1 S-2 OTTER TAIL COUNTY, MINNESOTA By: ____________________________________ Its: Chair of the Board of Commissioners By: ____________________________________ Its: County Administrator This is a signature page to the Project Financing Assistance Agreement by and between the Housing and Redevelopment Authority in and for the County of Otter Tail, Minnesota, and Otter Tail County, Minnesota. Annual Payment ($51,983.21) Total Financial Assistance $850,000.00 2% Interest Due Date Principal Interest Total 11/30/2025 $34,983.21 $17,000.00 $51,983.21 $815,016.79 11/30/2026 $35,682.87 $16,300.34 $51,983.21 $779,333.92 11/30/2027 $36,396.53 $15,586.68 $51,983.21 $742,937.38 11/30/2028 $37,124.46 $14,858.75 $51,983.21 $705,812.92 11/30/2029 $37,866.95 $14,116.26 $51,983.21 $667,945.97 11/30/2030 $38,624.29 $13,358.92 $51,983.21 $629,321.68 11/30/2031 $39,396.78 $12,586.43 $51,983.21 $589,924.90 11/30/2032 $40,184.71 $11,798.50 $51,983.21 $549,740.19 11/30/2033 $40,988.41 $10,994.80 $51,983.21 $508,751.78 11/30/2034 $41,808.17 $10,175.04 $51,983.21 $466,943.61 11/30/2035 $42,644.34 $9,338.87 $51,983.21 $424,299.27 11/30/2036 $43,497.22 $8,485.99 $51,983.21 $380,802.05 11/30/2037 $44,367.17 $7,616.04 $51,983.21 $336,434.88 11/30/2038 $45,254.51 $6,728.70 $51,983.21 $291,180.37 11/30/2039 $46,159.60 $5,823.61 $51,983.21 $245,020.76 11/30/2040 $47,082.79 $4,900.42 $51,983.21 $197,937.97 11/30/2041 $48,024.45 $3,958.76 $51,983.21 $149,913.52 11/30/2042 $48,984.94 $2,998.27 $51,983.21 $100,928.58 11/30/2043 $49,964.64 $2,018.57 $51,983.21 $50,963.94 11/30/2044 $50,963.93 $1,019.28 $51,983.21 $0.01 Exhibit A-1 Financial Assistance Schedule of Repayments &-, OTTE:R 'TAIL ""1fr..' COUNTY -MININESOTA 218-998-8730 @ HOUSING ANIO REDEVIEL.OPMENT .AUTHO·RITY OTTER TAIL COUNTY IS AN EQUAL OPPORTUNITY EMPLOYER Go,vern ment Services Center 500 West Fir Avenue Fergus alls. MN 56537 @ ottertailcounty.gov OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _March 19, 2024__ BOARD MEETING DATE AGENDA ITEM #4C Amy Baldwin 03/14/2024 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 280 Resolution Authorizing Transfer of Funds For North Fields of Dalton PROPOSED REQUEST/JUSTIFICATION In addition to the financial assistance from the County, approximately $814,550 (includes base bid +all bid alternates) of funding is needed to complete the development. It is proposed that the following funding sources and amounts be used for the proposed development: 1) $143,671 of Statewide Affordable Housing Aid to be requested from the County; 2) $545,879 of HRA General Funds 3) $125,000 from the HRA Rent Rehab bank account It is further recommended that these funds be allocated to the North Fields of Dalton Construction Work In Progress Account. Staff recommends approval, subject to the approval by the County Board on March 26, 2024 and the approval of the Purchase and Development Agreement by the City of Dalton at its meeting on April 2, 2024. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 03/14/2024 ATTACHMENT LIST: Resolution No. 280 FINANCIAL IMPLICATIONS: BUDGETED: X YES NO FUNDING: HRA Funds and County Assistance COMMENTS RESOLUTION NO. 280 RESOLUTION AUTHORIZING TRANSFER OF FUNDS FOR NORTH FIELDS OF DALTON WHEREAS, the Housing and Redevelopment Authority in and for Otter Tail County (the "HRA"), is intending to undertake the acquisition and construction of two triplex buildings, totaling six units of affordable senior housing (the "Project") to be located on certain real property currently owned by the City of Dalton, Minnesota (the "City"); and WHEREAS, the acquisition and development of the Project is proposed to be pursuant to a Purchase and Development Agreement, by and between the HRA and the City (the "Agreement"), the form of which has been submitted to the Board of Commissioners for review and approval; WHEREAS, the HRA has requested assistance from Otter Tail County (the "County") to help pay for certain costs of the Project; and WHEREAS, Minnesota Statutes, Chapter 469 (the "Act"), and particularly Section 469.041, authorizes the County to provide such assistance; and WHEREAS, such assistance from the County has been proposed to be provided to the HRA pursuant to a Project Financing Assistance Agreement (the "Agreement"), the form of which has been submitted to the Board of Commissioners for review and approval; WHEREAS, the HRA adopted Resolution No. 277 “Authorizing Staff to Proceed with Financing and Contract Preparation for Construction of Senior Affordable Housing” on February 20, 2024; and WHEREAS, Exhibit A attached hereto and incorporated herein identifies the funding sources and the amounts (the “Funding and Financing Plan”) to be used for the Project; and WHEREAS, it is necessary to conduct reassignments and transfers to effectuate the Funding and Financing Plan. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the HRA staff is authorized to implement the Funding and Financing Plan as represented in Exhibit A; 2. The approval of the Funding and Financing Plan is subject to the approval of the Project Financing Assistance Agreement and the allocation of the 2023 Statewide Affordable Housing Aid by the Otter Tail County Board of Commissioners; 3. That all funds shall be allocated to the North Fields of Dalton Construction Account; 4. The Executive Director is hereby authorized, empowered, and directed to execute and deliver in the name and on behalf of the Authority any other documents and instruments in such form and on such terms and conditions as she deems necessary or appropriate in connection with the construction as contemplated above. 5. The Executive Director is hereby authorized, empowered, and directed to do all other acts and things as she deems necessary or desirable in her discretion to effectuate the purposes of the foregoing Resolutions. Upon the motion of __________, seconded by ____________ and passed on a _________ vote, the above resolution is hereby adopted by the Otter Tail County Housing and Redevelopment Authority Board of Commissioners. Adopted this 19th day of March 2024. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ EXHIBIT A FUNDING AND FINANCING PLAN FOR THE NORTH FIELDS OF DALTON CONSTRUCTION PROJECT FUNDING SOURCE TO BE ALLOCATED TO PROJECT AMOUNT Project Financing Assistance from Otter Tail County $850,000, subject to terms and conditions as described in the Project Financing Assistance Agreement Statewide Affordable Housing Aid from Otter Tail County $143,671, subject to the approval of the Otter Tail County Board of Commissioners HRA Funds $670,879 ($125,000 of which to come from Rent Rehab account) OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _March 19, 2024__ BOARD MEETING DATE AGENDA ITEM #4D Amy Baldwin 03/14/2024 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 281 Authorizing Execution of Construction Contracts for North Fields of Dalton PROPOSED REQUEST/JUSTIFICATION Staff has prepared a contract (AIA contract A104, Standard Abbreviated Form of Agreement between Owner and contractor) for the four contractors needed to complete the North Fields in Dalton construction project in the amounts shown below. Staff will summarize contract terms for the contractors at the meeting. In addition, another item on the agenda is to consider creating of a limited liability company to own and operate North Fields of Dalton (see item 4E). If approved, it is recommended that the construction contracts be “assigned” to the LLC prior to receiving the first invoice and conditioned upon the contractors naming the LLC as an additional insured on their policies. CONSTRUCTION TYPE CONTRACTOR PROPOSED CONTRACT COST Modular Construction Northstar Systembuilt $761,576 $ 16,604 siding upgrade Onsite Carpentry Novelty Construction LLC $216,061 $ 10,395 siding upgrade Excavating Leitch Excavating $61,870 Concrete Novelty Construction LLC $157,510 Mechanical and Plumbing Novelty Construction LLC $115,519 Electrical Ohren Electric $59,800 $ 400 EV charger wiring Total Construction Base Bid plus electric vehicle charger wiring $1,372,736 Total Construction Base Bid plus siding upgrade & electric vehicle charger wiring $1,399,735 Staff recommends approval of the resolution pending approval of financing by the Otter Tail County Board of Commissioners on March 26, 2024 and the Purchase and Development Agreement by the City of Dalton on April 2, 2024. EXECUTIVE DIRECTOR DATE: Amy Baldwin 03/14/2024 ATTACHMENT LIST: Resolution No. 281 FINANCIAL IMPLICATIONS: BUDGETED: X YES NO FUNDING: HRA Funds and County Assistance COMMENTS RESOLUTION NO. 281 AUTHORIZING EXECUTION OF CONSTRUCTION AGREEMENTS FOR NORTH FIELDS OF DALTON WHEREAS, the Housing and Redevelopment Authority in and for Otter Tail County (the "HRA"), is intending to undertake the acquisition and construction of two triplex buildings, totaling six units of affordable senior housing (the "Project") to be located on certain real property currently owned by the City of Dalton, Minnesota (the "City"); and WHEREAS, the acquisition and development of the Project is proposed to be pursuant to a Purchase and Development Agreement, by and between the HRA and the City (the "Agreement"), the form of which has been submitted to the Board of Commissioners for review and approval; and WHEREAS, the HRA has requested assistance from Otter Tail County (the "County") to help pay for certain costs of the Project; and WHEREAS, Minnesota Statutes, Chapter 469 (the "Act"), and particularly Section 469.041, authorizes the County to provide such assistance; and WHEREAS, such assistance from the County has been proposed to be provided to the HRA pursuant to a Project Financing Assistance Agreement (the "Agreement"), the form of which has been submitted to the Board of Commissioners for review and approval; and WHEREAS, the HRA adopted Resolution No. 277 “Authorizing Staff to Proceed with Financing and Contract Preparation for Construction of Senior Affordable Housing” on February 20, 2024; and WHEREAS, the Authority solicited bid proposals via an advertisement posted on the Otter Tail County website and submitted to the Lake Region Builders Association, as well as publishing in the Daily Journal on January 20, 2024; and WHEREAS, Exhibit A, attached hereto and made a part hereof, identifies the successful bidders (the “Selected Bidders”); and WHEREAS, the HRA has prepared a Construction Contract for each of the Selected Bidders (the “Contract”), the form of which is on file at the HRA offices; and WHEREAS, it may be necessary to assign the Contract to a HRA Limited Liability Company subject to subsequent HRA action. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the Board Chair and Executive Director are hereby authorized to execute a Contract with each of the Selected Bidders identified in Exhibit A for the amounts identified in Exhibit A, and subject to (i) such changes to the Contract that the Board Chair and Executive Director deems reasonable and necessary; (ii) the Contract with the Authority being executed by the Selected Bidders; and (iii) the cooperation of the City of Dalton, Minnesota, and Otter Tail County, including the execution and entering into applicable agreements related to the project, including but not limited to, a Project Financing Assistance Agreement with Otter Tail County and the Purchase and Development Agreements with the City of Dalton. 2. The Executive Director is hereby authorized, empowered, and directed to execute and deliver in the name and on behalf of the Authority any other documents and instruments in such form and on such terms and conditions as she deems necessary or appropriate in connection with the construction as contemplated above. 3. The Executive Director is hereby authorized, empowered, and directed to do all other acts and things as she deems necessary or desirable in her discretion to effectuate the purposes of the foregoing Resolutions. Upon the motion of _________________, seconded by ____________ and passed on a ____________ vote, the above resolution is hereby adopted by the Otter Tail County Housing and Redevelopment Authority Board of Commissioners. Adopted this 19th day of March, 2024. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ EXHIBIT A SELECTED BIDDERS FOR NORTH FIELDS OF DALTON CONSTRUCTION TYPE CONTRACTOR PROPOSED CONTRACT COST Modular Construction Northstar Systembuilt $761,567 $16,604 siding upgrade Onsite Carpentry Novelty Construction LLC $216,061 $10,395 siding upgrade Excavating Leitch Excavating $61,870 Concrete Novelty Construction LLC $157,510 Mechanical and Plumbing Novelty Construction LLC $115,519 Electrical Ohren Electric $59,800 plus $400 for electric vehicle charging OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _March 19, 2024__ BOARD MEETING DATE AGENDA ITEM #4E Amy Baldwin 03/14/2024 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 282 Authorizing Creation of North Fields of Dalton LLC PROPOSED REQUEST/JUSTIFICATION At the September 19, 2023 Board meeting, the HRA Board briefly discussed a recommendation to create a Limited Liability Company (LLC) to own and operate North Fields of Dalton. Minnesota state law permits housing authorities to be a general partner in an LLC (469.012 subd. 2j). Many housing authorities in the state take advantage of this provision to create a “liability shield” as opposed to exposing all of the assets of the HRA. The purpose of the resolution is to authorize the Executive Director to work with legal counsel for this purpose. Staff previously investigated this option last July. The recommendations from counsel included 1) to assign the construction contract to the LLC as a means to create the liability shield during construction; 2) the funds provided by the County and the HRA to finance the project should be transferred to the LLC when there is an invoice to pay, and not before; 3) the LLC should retain appropriate property and general commercial liability insurance. Staff recommends approval of the resolution and documents would be available for approval at the April Board meeting. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 03/14/2024 ATTACHMENT LIST: Resolution No. 282 FINANCIAL IMPLICATIONS: BUDGETED: X YES NO FUNDING: HRA Funds and County Assistance COMMENTS RESOLUTION NO. 282 RESOLUTION AUTHORIZING CREATION OF NORTH FIELDS OF DALTON LLC WHEREAS, the Housing and Redevelopment Authority in and for Otter Tail County (the "HRA"), is intending to undertake the acquisition and construction of two triplex buildings, totaling six units of affordable senior housing (the "Project") to be located on certain real property currently owned by the City of Dalton, Minnesota (the "City"); and WHEREAS, the acquisition and development of the Project is proposed to be pursuant to a Purchase and Development Agreement, by and between the HRA and the City (the "Agreement"), the form of which has been submitted to the Board of Commissioners for review and approval; and WHEREAS, the HRA has requested assistance from Otter Tail County (the "County") to help pay for certain costs of the Project; and WHEREAS, Minnesota Statutes, Chapter 469 (the "Act"), and particularly Section 469.041, authorizes the County to provide such assistance; and WHEREAS, such assistance from the County has been proposed to be provided to the HRA pursuant to a Project Financing Assistance Agreement (the "Agreement"), the form of which has been submitted to the Board of Commissioners for review and approval; WHEREAS, the HRA adopted Resolution No. 277 “Authorizing Staff to Proceed with Financing and Contract Preparation for Construction of Senior Affordable Housing” on February 20, 2024; and WHEREAS, it is appropriate to protect the assets of the HRA through a limited liability company as permitted in the Act and particularly Section 469.012 (subd. 2j); and WHEREAS, it is intended that the purpose of the limited liability company is to own and operate the Project and to oversee the construction of the Project . NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. The Executive Director is hereby authorized, empowered, and directed to work with the HRA legal counsel to prepare the necessary documents to create the North Fields of Dalton Limited Liability Company, with the HRA acting as the sole member; 2. The Executive Director is hereby authorized to execute and deliver in the name and on behalf of the Authority any other documents and instruments in such form and on such terms and conditions as she deems necessary or appropriate in connection with the LLC as contemplated above. 3. The Executive Director is hereby authorized, empowered, and directed to do all other acts and things as she deems necessary or desirable in her discretion to effectuate the purposes of the foregoing Resolutions. Upon the motion of _________________, seconded by ____________ and passed on a ____________ vote, the above resolution is hereby adopted by the Otter Tail County Housing and Redevelopment Authority Board of Commissioners. Adopted this 19th day of March, 2024. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION _March 19, 2024__ BOARD MEETING DATE AGENDA ITEM #4F Rehabilitation ORIGINATING DEPARTMENT/SERVICE Tanya Westra 03/10/2024 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 283 Committing Funds to the CHIP Residential Owner Occupied Leverage Program for the Pelican Rapids SCDP Application PROPOSED REQUEST/JUSTIFICATION In November 2023, the HRA submitted a pre-application on behalf of the City of Pelican Rapids to the Minnesota Department of Employment and Economic Development’s Small Cities Development Program (SCDP). On January 3, 2024, the HRA was notified that the pre-application was invited back for the full application process. The full application, due on April 17, 2024, will seek funds totaling $1,075,260 to rehabilitate 17 owner occupied homes and 10 commercial buildings. The HRA administers a program in which a homeowner may utilize up to $7,000 in leverage funds to aid in the rehabilitation of their home, as most projects exceed the $25,000 SCDP maximum. Leverage funds offered by the HRA are repaid at the time a homeowner refinances an existing mortgage or sells their home and is secured with a lien on the property. If the application is funded, and all owner occupied applicants utilize the full $7,000 in leverage funds, a total of $119,000 would be needed. Historically, the annual budget includes $70,000 per year in approved funds for this purpose. The SCDP application process is highly competitive. Having committed leverage funds strengthens the application making it more likely to be funded. It is recommended that the HRA Board of Commissioners commit to make available leverage funds not to exceed $119,000 over the duration of the Pelican Rapids Small Cities Development Program Grant (2024-2026). This commitment will allow the Executive Director to submit a letter of financial support with the full application. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED EXECUTIVE DIRECTOR DATE: Amy Baldwin 03/13/2024 ATTACHMENT LIST: Resolution FINANCIAL IMPLICATIONS: $119,000 over multiple years BUDGETED: X YES NO FUNDING: General Revolving COMMENTS RESOLUTION NO. 283 RESOLUTION COMMITTING FUNDS TO THE COMMUNITY HOUSING INVESTMENT PROGRAM RESIDENTIAL OWNER OCCUPIED LEVERAGE PROGRAM WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) is empowered to carry out housing and redevelopment programs within its jurisdiction; and WHEREAS, the city of Pelican Rapids (collectively known as the “City”) contacted the Authority to survey and submit the preapplication for the Small Cities Development Program (collectively known as “SCDP”) Grant offered by the Minnesota Department of Employment and Economic Development; and WHEREAS, the Authority submitted the Preapplication in November 2023 which has been deemed “competitive”; and WHEREAS, the Authority has been invited to submit a full application that is due by April 17, 2024 for 17 owner occupied and 10 commercial projects; and WHEREAS, the Authority administers the Residential Owner Occupied Leverage Program (collectively known as the “Program”) to increase the likelihood of approval of applications from other resources; and WHEREAS, the qualifying applicants of the Program can receive up to $7,000 for additional work to their home; and WHEREAS, the Authority has historically budgeted $70,000 per year to the Program, including the 2024 General Revolving Budget; and WHEREAS, to pledge it’s support of the SCDP application, the Authority will commit a total of $119,000 for the duration of the open grant; and NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. HRA Staff work in conjunction with the City of Pelican Rapids to submit the full application to the Minnesota Department of Employment and Economic Development for the Small Cities Development Program grant. 2. That the Chairperson and Executive Director are hereby empowered to execute the Administrative Contracts with the City of Pelican Rapids if approved. 3. That the Executive Director is hereby empowered to undertake any action necessary to implement the administration of the Program. Upon the motion of_____________, seconded by____________, and passed on a ____________vote, the above resolution is hereby adopted by the Otter Tail County Housing and Redevelopment Authority Board of Commissioners. Adopted this 19th day of March, 2024. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________