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HomeMy WebLinkAboutHousing & Redevelopment Authority - HRA-Packet-Addition 04-02-2025 Supporting Documents - 04/02/2025Revised OTTER TAIL COUNTY – MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY AGENDA Government Services Center, Otter Tail Lake Room 515 West Fir Avenue, Fergus Falls, MN April 2, 2025 | 12:45pm HRA Board Member, Leland Rogness, will be attending the meeting virtually from 9822 W Long Hills Dr., Sun City, AZ 85351 1. Call Meeting to Order and Roll Call – Chairperson 2. Approval of Agenda 3. Consent Agenda A. Regular Board Meeting Minutes, March 5, 2025 B. Housing Choice Voucher Rental Assistance Program for February 2025 C. Community Housing Investment Programs for February 2025 D. Public Housing and Senior Housing for February 2025 E. Check Report and Financial Reports for February 2025 4. New Business A. 2025 Finance Committee Appointment B. Resolution 309 Adopting Amendment to ACOP & Admin Plans 5. Old Business A. Resolution 310 Authorizing Execution of Purchase Agreement for Parcels 73000990605000 and 73000990604000 in New York Mills 6. Executive Director Report A. Federal Home Loan Bank of Des Moines Application for NYM Senior Housing B. Legislative Update 7. General Discussion – Topics by Commissioners 8. Adjourn OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY REQUEST FOR BOARD ACTION April 2, 2025 BOARD MEETING DATE AGENDA ITEM #5A_ Amy Baldwin 06/02/2025 REQUESTOR’S SIGNATURE/DATE BOARD ACTION REQUESTED Resolution No. 310 Authorizing Purchase Agreement for Parcels 73000990605000 and 73000990604000 PROPOSED REQUEST/JUSTIFICATION The HRA had an executed Purchase Agreement with the City of New York Mills for property on South Point Drive that expired on 12/31/2024. The property would be the next site for affordable senior rental housing owned and operated by the HRA. If approved, the new Purchase Agreement would run through 12/31/2026 and be contingent on sufficient funding from “Minnesota Housing and Others” as staff is working on submission of additional grant applications that would fund construction and development of 6 units of affordable senior rental housing. Staff recommends the Board approve the resolution. PREVIOUS ACTION ON REQUEST/OTHER PARTIES ADVISED: N/A EXECUTIVE DIRECTOR DATE: Amy Baldwin 06/02/2025 ATTACHMENT LIST: Resolution 310 Exhibit A - Purchase Agreement FINANCIAL IMPLICATIONS: TBD BUDGETED: YES NO FUNDING: TBD COMMENTS RESOLUTION NO. 310 RESOLUTION AUTHORIZING THE EXECUTION OF PURCHASE AGREEMENT FOR PARCELS 73000990605000 AND 73000990604000 WHEREAS, the Otter Tail County Housing and Redevelopment Authority (the “Authority”) owns and administers the Affordable Senior Housing Program; and WHEREAS, the Authority intends to draft applications for Congressionally Directed Spending and the Federal Home Loan Bank to construct six units of affordable senior housing in New York Mills (the “Applications”); and WHEREAS, the Applications for funding are due April 14, 2025 and May 1, 2025, and WHEREAS, the site located in New York Mills on South Point Drive has been identified as the next location for construction of six affordable senior housing units; and WHEREAS, the City of New York Mills has approved execution of the purchase agreement with the Authority with an expiration date of December 31, 2026 and contingent upon funding approval from the Applications; and WHEREAS, the Authority has determined that the Applications are in alignment with the Otter Tail County Long Range Strategic Plan. NOW, THEREFORE, IT IS HEREBY RESOLVED: 1. That the Otter Tail County HRA Board of Commissioners hereby authorizes the Executive Director to submit the required applications and supporting materials for Congressionally Directed spending and to the Federal Home Loan Bank. 2. That the Executive Director is authorized, empowered, and directed to undertake any other tasks as she deems necessary or desirable in her discretion to effectuate the purposes of the foregoing Resolution. 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 2nd day of April, 2025. Dated: _______________________________ OTTER TAIL COUNTY HRA BOARD OF COMMISSIONERS Attest:________________________________ By:_______________________________ 127946795v1 1 EXHIBIT A REAL PROPERTY PURCHASE AND SALE AGREEMENT This Real Property Purchase and Sale Agreement (this "Agreement") is made to be effective on April 2, 2025 (the "Effective Date") by and between the Otter Tail County Housing and Redevelopment Authority, a public body corporate and politic under the laws of the state of Minnesota ("Buyer"), and the City of New York Mills, Minnesota, a municipal corporation ("Seller"), each a "Party" and collectively the "Parties." RECITALS WHEREAS, the Seller is the owner in fee simple of the real property legally described on EXHIBIT A attached hereto (the "Property"); and WHEREAS, the Seller desires to sell the Property to Buyer and Buyer desires to purchase the Property from Seller subject to the terms and conditions hereinafter set forth: NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Buyer and Seller hereby agree as follows: ARTICLE 1: PURCHASE AND SALE 1.1 Property. Upon and subject to the terms and conditions set forth in this Agreement, Buyer shall purchase from Seller, and Seller shall sell to Buyer good fee title in and to the Property, including all easements, and rights appurtenant thereto. ARTICLE 2: PURCHASE PRICE 2.1 Purchase Price. The purchase price for the Property shall be FORTY-FOUR THOUSAND and 00/100 Dollars ($44,000) (the "Purchase Price"). The Purchase Price, as adjusted for closing costs and prorations as set forth in this Agreement, shall be paid to Seller in cash or other immediately available funds. 2.2 CDA Grant. The Seller shall apply for a grant of $25,000 (the "Grant") from the Otter Tail County Community Development Agency (the "CDA"). In the event that the Seller receives the Grant from the CDA, the Purchase Price shall be reduced to $19,000. ARTICLE 3: TITLE OF THE PROPERTY 3.1 Title to be Delivered. At Closing, Seller will execute and deliver a Warranty Deed for the Property to Buyer (the "Deed"). ARTICLE 4: INSPECTION; CONDITION OF THE PROPERTY 4.1 Inspection. From the Effective Date to the Closing Date (defined below), Buyer may enter the Property to conduct any non-invasive testing, investigation, inspections, soil borings or environmental site assessments of the Property deemed necessary by Buyer, at Buyer's risk and expense. Buyer shall pay all costs and expenses of the inspections. 127946795v1 2 ARTICLE 5: CONTINGENCIES 5.1 Buyer's Contingencies. The obligations of Buyer under this Agreement are contingent upon each of the following occurring on or before the Closing Date: (a) Buyer shall have received sufficient funding assistance from the Minnesota Housing Finance Agency and other entities for the project to be constructed on the Property. (b) The Board of Commissioners of the Buyer shall have approved the proposed development to be constructed on the Property. (c) Seller shall have received the Grant and have approved a new plat for the lots to ensure the project to be constructed on the Property meets local zoning and land use requirements. 5.2 Seller Contingencies. The obligations of Seller under this Agreement are contingent upon the Seller obtaining the necessary approvals to enter into this Agreement and sell the Property on or before the Closing Date and Buyer fulfilling its obligations under this Agreement. 5.3 Right of Termination. The contingencies in Section 5.1 are solely for the benefit of Buyer. If any contingencies in Section 5.1 are not satisfied or waived by Buyer on or before the Closing Date, then Buyer may terminate this Agreement on or before such date. If the contingency set forth in Section 5.2 is not satisfied by Seller on or before the Closing Date, then Seller may terminate this Agreement unless and until the contingency is satisfied. ARTICLE 6: REPRESENTATIONS 6.1 Seller's Representations. Seller warrants and represents to Buyer that the following statements ("Seller's Representations") are, and will be at the Closing, true and accurate. (a) Seller is not a "foreign person" under the Internal Revenue Code. (b) Upon Closing, this Agreement and all documents, instruments and agreements contemplated herein are: (i) validly authorized, executed and delivered by Seller, (ii) legally binding, and (iii) enforceable. (c) There is no actual or threatened litigation or proceedings with respect to the Property. (d) Seller has not entered into any other agreement for the sale of any portion of the Property and there are no existing rights or options to purchase any portion thereof. (e) Seller did not utilize any brokers in connection with the Property or this transaction. (f) To the best of Seller's knowledge, there are no leases for the Property. (f) As required by Minnesota Statutes, Seller represents that, to the best of Seller's knowledge, (i) there are no wells, septic systems or storage tanks located on the Property; and (ii) methamphetamine production has not occurred on the Property. If airport zoning regulations affect the Property, a copy of those regulations can be obtained at the office of the Morrison County Recorder. 127946795v1 3 If any of Seller's Representations become inaccurate before Closing, Seller will notify Buyer of such change. If curable, Seller shall cure such change. If Seller refuses or is unable to cure, Buyer may: (i) terminate this Agreement; or (ii) waive objection to the change and proceed to Closing. Seller's Representations shall survive Closing and delivery of the Deed for a period of six months after Closing. 6.2 Buyer's Representations. Buyer warrants and represents to Seller that the following statements ("Buyer's Representations") are, and will be at the Closing, true and accurate. (a) Buyer is a municipal corporation duly organized and validly existing in good standing under the laws of Minnesota. This Agreement and all documents, instruments and agreements contemplated herein are: (i) validly authorized, executed and delivered by Buyer, (ii) legally binding, and (iii) enforceable. (b) Buyer did not utilize any brokers in connection with the Property or this transaction. Buyer's Representations shall survive Closing and delivery of the deed for a period of twelve months after Closing. ARTICLE 7: CLOSING 7.1 Closing. Unless this Agreement is terminated in accordance with the terms hereof, the closing of the sale ("Closing") shall occur on December 31, 2026, or upon an earlier date and time mutually agreed upon by Buyer and Seller ("Closing Date"). 7.2 Seller's Closing Documents. At Closing, Seller shall execute and/or deliver the following: (a) the Deed; (b) a non-foreign affidavit as required by the Internal Revenue Code; and (c) such other documents as may be reasonably requested by Buyer to evidence the performance by Seller of its obligations under this Agreement. 7.3 Buyer's Closing Documents. At Closing, Buyer shall execute and/or deliver the following: (a) evidence of authority for the purchase; (b) a closing statement; and (c) such other documents as may be reasonably requested by Seller to evidence the performance by Buyer of its obligations under this Agreement. 7.4 Closing Costs. Closing costs will be split equally between the Seller and Buyer. 7.5 Taxes; Special Assessments. Buyer shall assume responsibility for the payment of all general real estate taxes and special assessments for the Property, on and after the Closing Date. ARTICLE 8: OPERATION PRIOR TO CLOSING 8.1 Leases; Agreements. Seller shall not execute any leases or agreements with respect to the Property. ARTICLE 9: CONDEMNATION 9.1 Condemnation. If eminent domain proceedings are threatened or commenced against any portion of the Property, Seller shall give prompt notice to Buyer, and Buyer will have the right to terminate this Agreement within 30 days of Seller's notice. If Buyer fails to timely terminate this Agreement under 127946795v1 4 this Section, then the parties will proceed to Closing, and Seller will assign to Buyer all rights to appear in and receive any award from such proceedings. ARTICLE 10: DEFAULT 10.1 Seller's Default. If Seller defaults under this Agreement, Buyer may either (a) terminate this Agreement; or (b) demand specific performance. Any action for specific performance must be commenced within three (3) months of the event of default. The foregoing remedies will be the sole remedies available to Buyer for default by Seller, and Seller will not be liable for any other monetary damages. 10.2 Buyer's Default. If Buyer defaults under this Agreement, Seller shall have the right to terminate this Agreement, after written notice of cancellation as provided under Minnesota Statutes Section 559.21 and all other remedies available at law or in equity. 10.3 Indemnification. Notwithstanding any statement to the contrary, nothing in this Section shall in any manner limit the indemnifications or other obligations of Buyer to Seller in this Agreement. ARTICLE 11: MISCELLANEOUS 11.1 Notices. Notices under this Agreement must be in writing and delivered to the address on the signature page. If a deadline under this Agreement expires on a weekend or national holiday, the time for performance or taking such action shall be extended to the next business day. 11.2 Time of the Essence. Time is of the essence for performance of this Agreement. 11.3 Assignment. Buyer may not assign or transfer its rights under this Agreement without the prior written consent of the Seller. This Agreement is binding upon and inures to the benefit of the Parties and their respective heirs, executors, administrators, legal representatives and permitted assigns. 11.4 Entire Agreement. This is the entire agreement between the Parties related to the sale of the Property and supersedes all prior agreements with respect thereto. This Agreement may be modified only in writing signed by the Parties. 11.5 Waiver; Governing Law. THE PARTIES WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR SUIT ARISING OUT OF THIS AGREEMENT. The laws of Minnesota govern all matters arising out of this Agreement. 11.6 Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same document. Signatures on counterparts may be delivered via any electronic means. 11.7 Attorneys' Fees. In the event of a dispute arising out of breach or claimed breach of this Agreement, the prevailing party shall be entitled to recover from the other party all costs and expenses incurred as a result, including attorneys' fees and costs. The term "prevailing party" means that party in whose favor any monetary or equitable award is made or in whose favor any dispute is resolved, regardless of any settlement offers or whether such award is determined by an arbitrator or court. 127946795v1 S-1 To evidence their agreement to the foregoing, the Parties have duly executed this Agreement effective as of the date first written above. Buyer: OTTER TAIL COUNTY HOUSING AND REDEVELOPMENT AUTHORITY By:____________________________ Name:__________________________ Its: ____________________________ By:____________________________ Name:_________________________ Its: ____________________________ Seller: CITY OF NEW YORK MILLS, MINNESOTA By:____________________________ Name:_________________________ Its: ____________________________ By:____________________________ Name:_________________________ Its: ____________________________ Addresses for Notices: Otter Tail County HRA Attn: Amy Baldwin 500 West Fir Avenue Fergus Falls, MN 56537 City of New York Mills, Minnesota 28 Centennial 84 Drive West New York Mills, MN 56567 127946795v1 A-1 EXHIBIT A TO REAL PROPERTY PURCHASE AND SALE AGREEMENT Legal Description of the Property That certain real property located in the City of New York Mills, County of Otter Tail, State of Minnesota, legally described as follows: Lot 1 and Lot 2, Block 1, South Point Development, First Addition.