IV.3. Resolution Approving Raspberry Ridge Loan Addition; ElverumSeptember 25, 2018 Council Report 2018-108
RESOLUTION APPROVING RASPBERRY RIDGE LOAN ADDITION
Proposed Action
Staff recommends adoption of the following motion: Move to approve Resolution 2018-
080 Authorizing the Addition of a Second Loan on the Raspberry Ridge Apartments.
With this motion, Community Housing Development Corporation will be allowed to
secure a second loan for financing improvements.
Overview
In 2008, the City of Hopkins issued tax exempt bonds as conduit financing for
Community Housing Development Corporation (CHDC) to refund previous bonds and
make improvements to the Raspberry Ridge development. CHDC is planning another
set of improvements to the property, including retaining walls, roofing, parking lots and
window lintel repair, financed with a secondary loan. The term would be $1.1 million
loan with a 25-year amortization.
The loan agreement that is in place between the City of Hopkins and CHDC requires
CHDC to obtain permission from the City to take on additional debt. The proposed
resolution would authorize CHDC to obtain the loan, secured against the property.
Primary Issues to Consider
The City is not incurring any additional responsibility for the project by approving a
second loan, the action will result in improvements to the property and the residents will
not experience a rent increase as a result of the action.
Supporting Information
•Resolution 2018-080
•Loan Agreement Between City of Hopkins and Community Housing
Development Corporation
•List of Improvements
____________________________
Kersten Elverum
Director of Planning & Development
Financial Impact: $0 Budgeted: Y/N _N___ Source: Related Documents (CIP,
ERP, etc.): Excess TIF
1
537760v1 AMB HP145-50
CITY OF HOPKINS, MINNESOTA
RESOLUTION NO. 2018-080
RESOLUTION AUTHORIZING THE ADDITION OF A SECOND LOAN ON THE
RASPBERRY RIDGE APARTMENTS
WHEREAS, the City of Hopkins, Minnesota (“City”), entered into a loan agreement with
Community Housing Development Corporation (“Developer”), dated June 1, 2008 (the
“Agreement”), for the project generally known as the Raspberry Ridge Apartments (the “Project”);
and
WHEREAS, the Project included a tax-exempt conduit bond issue in which the City
participated; and
WHEREAS, the Developer now seeks to add a conventional loan (the “Second Loan”) in
addition to the existing debt; and
WHEREAS, the Agreement requires the City to approve of such addition of the Second
Loan; and
WHEREAS, the City is not incurring any additional responsibility for the Project by the
approval of the Second Loan.
NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Hopkins,
Minnesota, that the recitals and the exhibit set forth in and attached to this Resolution are incorporated
into and made a part of this Resolution.
NOW, THEREFORE, BE IT FURTHER RESOLVED, that the City Council of the
City of Hopkins, Minnesota, hereby approves of the addition of the Second Loan to the Project.
NOW, THEREFORE, BE IT FINALLY RESOLVED, by the City Council of the City
of Hopkins, Minnesota, that the Mayor, City staff, City attorney and City consultants are hereby
authorized and directed to take any and all additional steps and actions necessary or convenient in
order to accomplish the intent of this Resolution.
Approved this 2nd day of October, 2018, by the City Council of the City of Hopkins, Minnesota.
CITY OF HOPKINS, MINNESOTA
Attest:
Molly Cummings, Mayor
Amy Domeier, City Clerk
Page 1 of 1
TODAY'S DATE JOB NAME
PROPOSED TO JOB LOCATION
CONTACT INFORMATION
Name: E-mail:
Phone:
Priority Description
1
2
2
3
4
4
4
5
6
7
7
8
9
10
Chris Maida
Minneapolis, MN 55401
Retaining wall along West side of property: 14th Street. Remove and replace with modular block wall.
Retaining wall along East side of property. Remove and replace with modular block wall.
$52,512
$31,920
CHDC
614 North First Street
612-332-6264
cmaida@chdcmn.org
Skywalk bridge stabilization: sandblast and paint catwalk, metal pan repair, supply and install gutter and downspout, concrete
sealant at catwalk and caulking at all edges.
Boilers: remove existing boiler, water heaters (save for owner) and expansion tank. Install (4) new Trinity TFT399 stainless steel
modulating boilers, (3) stainless steel 80 gallon water heaters with stainless steel coils, and two stage auto water heater back up.
Includes building drain down and refill, 4" service valve on boiler returns and pipe insulation on new piping.
6/4/2018
PROPOSAL
Raspberry Ridge
27 - 14th Ave North
License #: BC001347
Chris Maida
Retaining wall along South side of property: Main Street. Remove and replace with modular block wall.
Retaining wall at north end of apartment building. Remove existing retaining wall and adjacent sidewalk. Supply and install new
retaining wall with geogrid and draintile. Note: existing sidewalk next to retaining wall will need to be removed or reconfigured to
accomodate geogrid. Includes engineered drawings by a civil engineer.
Lintel Repair: replace all lintels and install thru-wall flashing at all windows labeled #1 & #2 on LHB's Lintel Evaluation plan. Total:
lintels at 31 windows. $203,000
$70,860
$73,440
$9,460
$88,616
$878,443
$52,707
$46,557
$21,406
$22,817
Asphalt parking lot repair alternate: Edge/Mill south drive beyond gate to Main Street.
Roofing: flat roof at areas D-G appear to 20+ years old and past their effective useful life. They are in poor or failing condition and
should be considered for replacement. Install EPDM roofing system.
Roofing: shingle roofs are considered to be in good to fair condition. The estimated age is 10-15 years old. No splitting, curling or
spider cracking was observed on the face of the shingle. On the NE upper roof section of building 51-57 there are issues with the
roof deck attachment and a few areas of damaged shingles. Generally the shingle roofs have remaining service life of 5-10 year.
The cost for maintenance at all buildings and replace upper north roof area of building 51-57.
Contractor Fee
Supervision and Permitting
Subtotal
$22,000
$128,250
$977,707
At the 2nd floor lintels in courtyard (east facing), additional repairs to backup steel channel was required to secure new angle. This
additional work could be required on the remaining (4) 2nd floor windows in the courtyard and possibly on the east elevation. This
work is not included in the base bid. Assume $5500 allowance for 4 units.
Alternate/Notes:
Total
Concrete steps to parking lot at east side of apartments. Assumes both sets of stairs with railings.$20,680
$4,000Concrete repair allowance. Assumes (20) 4'x5' concrete panels.
Asphalt parking lot repairs: rehabilitate existing bituminous surface lot. Edge-mill/overlay existing bituminous and mill/excavate
deficient material areas per attached map. Install (6) speed bumps in existing locations. Strip lot per existing layout and
numbering.
$134,483
Dumpster Enclosure allowance.$17,000