Title
Approval of the July 10, 2013 HRA minutes.
Body
ROLL CALL
Present: Commissioners Brendmoen, Lantry, Stark, Thune, Tolbert
Absent: *Commissioner Bostrom
SWEARING IN OF NATHANIEL A. KHALIQ
CONSENT
1. Approval of the June 26, 2013 HRA meeting minutes.
Commissioner Lantry moved approval.
VOTE: Yeas - 6 Nays - 0
2. Authorization to Participate in the Minnesota Housing Finance Agency
(MHFA) Making Home Affordable Outreach and Intake Project (MHA)
Funded by a Federal Award from NeighborWorks® and Acceptance of a
Grant from MHFA for the Purpose of Mortgage Foreclosure Prevention
Counseling.
Commissioner Lantry moved approval. Approved as set forth in resolution RES 13-1000.
VOTE: Yeas - 6 Nays - 0
PUBLIC HEARING
*Commissioner Bostrom arrived.
3. Resolution Authorizing the Executive Director to Execute Various Documents in Connection with Sparc’s Westland Commons HRA Loan, District 6, Ward 5
Ms. Cecile Bedor, Executive Director for the HRA, stated the HRA approved a $600,000 loan to Sparc in 2005 to assist in the purchase of the Larson Greenhouse site located at 391/425 West Maryland Avenue. At the same time, Greater Metropolitan Housing Corporation (GMHC) also executed a Mortgage, Loan Agreement and a Promissory Note for $650,000 with Sparc for this project.
At the time of their purchase of the land, Sparc proposed to construct 36 townhomes on the site for owner-occupancy. Because of the downturn of the housing market, construction never occurred. PED has since amended the HRA loan three times to give Sparc additional time to develop the property.
In 2011, Sparc stopped paying the property taxes. The property taxes are delinquent from 2011 through the first half of 2013. In March, 2013, with the encouragement of PED staff, Sparc entered into a Confession of Judgment Agreement (“Agreement”) with Ramsey County. Even though Sparc had the resources to do so, Sparc chose to not make the May, 2013 payment required under the Agreement. The cur...
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