11/28/06 Special Meeting - Laserfiche WebLink

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commented it will be important to get the word out to the community about this project and the commitment that is required from Habitat for Humanity clients. Chairperson Olson commented on the benefits of having volunteers from the community working shoulder to shoulder with the people that will be living there. Case #2: ACCAP Town Center Apartment Project HRA Executive Director Frolik reviewed that on May 9, 2006, the Ramsey HRA and the City Council authorized staff to submit a request to the Anoka County Housing and Redevelopment Authority (ACHRA) to allocate $400,000 of Ramsey's County HRA levies towards the proposed ACCAP apartment project in Town Center. On June 27, 2006, the ACHRA approved the request for funds. Ms. Frolik explained ACCAP has control of the purchase option for the apartment project site in Town Center. It is prudent that the purchase option be exercised as soon as possible and staff has contacted ACHRA regarding the disbursement of funds in the amount of $270,000 for the land acquisition. The City has received a draft Grant Agreement from the County that is included in the HRA' s packet. This draft Agreement will be presented to the City Council at the Council meeting tonight. Ms. Frolik indicated upon execution of the Grant Agreement, the funds would be made available at the closing for the sale of the property, at which time the City is essentially loaning the funds to ACCAP. There will be a Loan Agreement between ACCAP and the City that will be brought to the HRA and City Council for review and approval prior to the closing on the land sale. Staff recommends that Council enter into this grant agreement with Anoka County. Commissioner Strommen inquired about the Declaration of Covenants, Conditions and Restrictions, labeled as Exhibit B in the agreement. She noted item no. 14. a. ii. of the agreement states that failure by the City to substantially observe or perform any other covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement, including, without limitation, the obligation to record the restrictions on the use of the Property as set forth in Exhibit B. HRA Executive Director Frolik explained the covenants will keep the property affordable for the 20-year period, and will be entered into with ACCAP in the loan agreement. It is anticipated this loan agreement will be on the November 14th agenda. If the HRA would like to review the covenants prior to this agreement with ACHRA, this agreement can be included on the November 14th agenda as well. Commissioner Elvig expressed concern about moving forward with this agreement, as there are not any sureties in place and there are unanswered questions. HRA Executive Director Frolik explained the funds are not dispersed until the closing date is set. If the City does not enter into a loan agreement with ACCAP the check will not be cut. If the funds are not used to purchase the land it would go back into the ACHRA pot under the City of Ramsey. Housing and Redevelopment Authority / October 24, 2006 Page 3 of 4