HOPKINS HOUSING AND REDEVELOPMENTHOPKINS HOUSING AND REDEVELOPMENT AUTHORITY
COMMERCIAL REHABILITATION LOAN REGULATIONS
THAN PRACTICES
City of Hopkins/HRA commercial Rehabilitation Loans shall not exceed
50% of approved permanent fixed improvements to structures, nor shall
such loans be granted until the other 50% financing has been secured.
If such private financing has not been secured from a participating
lender, a commercial loan analysis of the borrower must be conducted
at the borrower's expense.
ELIGIBILITY
A business must meet the following guidelines to participate in the
Commercial Rehabilitation Loan Program:
Location the business must be within the Hopkins city
limits in a designated redevelopment area, and not slated
for acquisition.
Type of Business Individual owners, partnerships,
corporations, tenant operators, or contract for deed
purchases.
Ineligible Improvements Refinancing existing debts, non-
fixed improvements, working capital, inventory and sweat
equity.
Eligible Improvements Virtually any fixed permanent
improvement, or repair to meet code, to include (but not
limited to) work on floors, walls, ceilings, roofs, facades
(front and rear) plumbing, electrical systems, structural
elements, heating and cooling systems, fire safety systems,
insulation, and building additions. All work done must meet
City code.
Zoning The business must be a permitted or approved
conditional use.
INTEREST RATE AND TERNS
The interest rate for the BRA- funded one -half of the Commercial
Rehabilitation loan program shall be 3% if it involves approved
renovation of the exterior of the building, both front and rear.
The rate shall be 6% if only interior changes are made. The 3%
rate may be allowed by special exception if the exterior (front
and rear) has been renovated within the last 15 years to coincide
with the architectural designs promulgated by the City Center
Development Corporation.
Terms of the loan can be up to twenty (20) years.
(1)
CREDIT REQUIREMENTS
Primary credit requirements are determined by the private lending
institution.
CODE COMPLIANCE, LIFE SAFETY
It is not the intent of this program to require that structures
be brought in all respects into compliance with current codes for
new construction. However, code violations involving life safety
must be corrected.
IRAN SECURITY
APPLICATION PRE INSPECTION
All applicants must agree to a thorough inspection of the subject
property, at the expense of the city, before the application is
processed.
INSURABILITY
STATUTORY LIMITATIONS
No grants of any type will be made in this program. No loans will
be made in excess of $200,000, or for a term longer than twenty (20)
years. No loan shall exceed eighty (80) percent of the estimated
market value of the subject property after rehabilitation, less the
principal balance of any mortgage then outstanding.
IRAN PRIORITY
DEFINITION OF TERMS
City of Hopkins/HRA Commercial Rehabilitation Loans must be
secured by a pledge or mortgage of scare type on the property
being improved.
After rehabilitation, the property must be insured through an
established public or private property insurance program.
First priority for available loan monies will go to any persons or
businesses under orders fLuiu any public agency to make code enforoemnt
corrections.
"Small and medium sized commercial buildings" shall be defined
as those structures having a principally commercial character,
a commercial ground floor, and less than 30,000 commercially
usable square feet.
RESIDENTIAL REHABILITATION
Apartments in an eligible commercial building may only be rehabilitated
under this program if they number three or less.
(2)
ASSOCIATED COSTS
All associated costs must be borne by the applicant, but the following
costs are eligible for inclusion in the loan:
1. Architect's fees
2. Attorneys fees
3. Bank charges such as, but not limited to, the following:
a. appraisal fees
b. credit reports
c. inspections
d. abstracting and filing fees
e. mortgage registration taxes
f. title insurance premiums
g. service charges
(3)
DATE: June 10, 1982
TO: Honorable Mayor and City Council
THROUGH: William Craig, City Manager
FROM: Hopkins Park Board
BY: Richard Wilson, Recreation and Park Director V
SUBJECT: Play Equipment for Park Valley Playground
The Park Valley Association has proposed that they be authorized to construct
for and locate on the Park Valley Playground, a play equipment structure con-
structed entirely from used truck and tractor tires. Their example is located
on the Cedar Manor Elementary school grounds, 9400 Cedar Lake Road, St. Louis
Park.
Craig Hinrichs represents the Association on this proposal. He was present
at the May 24, 1982, meeting of the Hopkins Park Board and explained the
Association's intentions, including their promise to keep the equipment main-
tained during the future years. The proposed location of this apparatus is
in the east -west line of the present play equipment on the playground.
The Hopkins Park Board recommends that the City Council accept the Park Valley
Association donation of the play equipment structure, subject to the approval
of design and safety precautions as are to be determined by the Recreation and
Parks staff.
This proposal will be presented to the City Council on June 15, 1982.
Staff recommends the City Council approve the proposed donation, subject
to location, design, and safety concerns approval by the Recreation and Park
Departments.
dmd