HRA BOARD AGENDA. Meeting: Monday, December 28, 2015 Place: Buffalo City Center Time: 3:30 PM

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1 HRA BOARD AGENDA Meeting: Monday, December 28, 2015 Place: Buffalo City Center Time: 3:30 PM 1. APPROVAL OF NOVEMBER 18 MINUTES. Please Click Here For Minutes 2. AGENDA ADDITIONS OR DELETIONS. 3. ADOPTION OF RESOLUTION TERMINATING GOLF COURSE GROUND LEASE. Summary: The Housing & Redevelopment Authority Board should take action to adopt a resolution that terminates the ground lease for Wild Marsh Golf Course. The City Council has moved forward on refinancing the debt. Recommendation: Adopt the attached resolution. Person: Executive Director Laureen Bodin Please Click Here For More Information 4. WRITE OFF OF BAD DEBT. Summary: Three small business loans have become uncollectible. The loans were made to Sell It Fast On Us (Franklin Dorsey) in the amount of $2,760.25, The Open Birdcage (Tammy Ameri) in the amount in the amount of $821.82, and Wagstreet Station (Troy & Nicole Lanie) in the amount of $4, Recommendation: Approve of writing off of bad debt. Person: Executive Director Laureen Bodin

2 HRA Board Agenda December 28, APPROVAL OF CLAIMS. 6. OTHER.

3 HRA MINUTES November 18, 2015 The Housing and Redevelopment Authority of Buffalo held a regular meeting in the City Center of said City at 3:30 p.m. on the 18th day of November 2015, with the following members present: Constance Carlson, Jim Holm, Jill Nauman, John Siffert and Judie Rose. No one was absent. Also in attendance were Executive Director Laureen Bodin and Planning and Development Coordinator Jennifer Nash. APPROVAL OF OCTOBER 21 MINUTES On the motion by Board member Holm to approve the October 21 HRA meeting minutes, motion seconded. All voting in favor, motion carried. AGENDA ADDITIONS OR DELETIONS The discussion of the expenditures for 2016 will be moved up in the agenda before others. Motioned by Carlson and seconded to approve the agenda as amended above, all voting in favor. EXPENDITURES FOR 2016 Executive Director Bodin noted that HRA funds are limited for additional loans or grants due to existing commitments. HRA members discussed levy revenue projections, loan repayment schedules, and other expenditures. Bodin noted that bond payments from Division Street and parking lot improvements from 2008D will end with the last payment in 2019, which will free up some more funds. REQUEST FOR MONIES BY KENT PFEIFER Kent Pfeifer has twelve spaces totaling 12,000 in the newest of three buildings at 600 Soo Lane. He is seeking a grant of $16,800 to install improved exterior finishes. Pfeifer stated that the grant funding would help him gain access to more advantageous financing terms. The banks like to see space leased before loans are made, but grant money would offset some of required pre-contracted requirements. He states that in return for a grant of $16,800, he will install upgraded finishes worth more than this amount. HRA members discussed whether it would be possible to come up with funds for the requested grant. Board member Siffert made a motion grant the funds of $16,800 to Kent Pfeifer for this project contingent on an appraised value of $1,000,000. The motion died for lack of second. Pfeifer told the Board that while the cost to construct the

4 November 18, 2015 building will total $1,000,000, it would not be appraised at that level for tax purposes. Board member Holm made a motion to the grant $16,800 to the project and the motion was seconded. On the motion, all members voted in favor. REQUEST OF RAINER PENSKY FOR BUSINESS LOAN Executive Director Bodin noted that Rainer Pensky was unable to attend this meeting, but is seeking a loan of half of the estimated costs to remodel the first floor of his building at Division Street. HRA members asked if Pensky has repaid his loan that was associated with Wagstreet Station. Bodin noted that he has one remaining payment on the loan and will then be current on the payments. The request was made by Pensky after he was notified by City Staff that improvements he has pulled building permits for will require payments of sewer and water access charges. HRA members discussed whether they could provide funds via a loan if the City is not able to carry the costs of SAC and WAC charges for a period of time. Members also reviewed an estimate written by Pensky of his costs. The consideration of SAC and WAC charges will be redirected to Staff to advise Pensky to take the issue to City Council first. Staff was also directed to work with Pensky toward a potential successful loan. APPROVAL OF CLAIMS Upon the motion by Board member Carlson, motion was seconded to approve the following claims, all members voting in favor. City of Buffalo Buffalo Housing & Redevelopment Authority Approval of Claims October through November 2015 Paid to: Description Date Paid Check # Amount Briggs and Morgan TIF 22 11/12/ $3, League of MN Cities Ins. Liability 11/12/ $43.75 TOTAL: $3,043.75

5 November 18, 2015 ADJOURN Chairperson Rose adjourned the meeting at 4:53 p.m. Chairperson Executive Director Return to Agenda

6 EXTRACT OF MINUTES OF A MEETING OF THE BOARD OF COMMISSIONERS OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF BUFFALO, MINNESOTA HELD:, 2015 Pursuant to due call, a regular meeting of the Board of Commissioners of the Housing and Redevelopment Authority of the City of Buffalo, Minnesota, was duly held at the City Hall on, 2015, at P.M. The following members were present: and the following were absent: Member introduced the following resolution and moved its adoption: RESOLUTION AUTHORIZING TERMINATION OF LEASE AND GROUND LEASE AND CALLING PRIOR BONDS A. WHEREAS, the City of Buffalo, Minnesota (the "City") proposes to issue its $3,265,000 General Obligation Tax Abatement Bonds, Series 2016A (the "Bonds") to acquire the Wild Marsh public golf course (the "Facility") from the Housing and Redevelopment Authority of the City of Buffalo, Minnesota (the "Authority"); and B. WHEREAS, the proposed purchase price of the Facility is in an amount equal to the outstanding principal and interest on the Authority's $4,380,000 original principal amount Public Facility Lease Revenue Bonds, Series 2005 (City of Buffalo, Minnesota, Wild Marsh Golf Course), dated June 29, 2005 (the "Prior Bonds") issued pursuant to a Mortgage and Security Agreement and Indenture of Trust dated June 29, 2005 between the Authority and U.S. Bank National Association, as trustee (the "Indenture"). NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the Housing and Redevelopment Authority of the City of Buffalo, Minnesota: 1. That the Prior Bonds which mature or are subject to mandatory redemption on and after May 1, 2015, shall be redeemed and prepaid on February 1, 2016 (the "Call Date"), in accordance with the terms and conditions set forth in the Notice of Call for Redemption attached as Exhibit A hereto, which terms and conditions are hereby approved and incorporated herein by reference. 2. As provided in Section 10.4 of the Lease Agreement between the Authority and the City, dated as of June 29, 2005 (the "Lease"), the Authority hereby determines and declares that upon the issuance of the Bonds and the funding of the Payment Account as provided in the City's Bond Resolution adopted on December 17, 2015, the Lease shall be terminated and the Authority shall have no further right, title and/or interest in and to the Facility. The Chairperson and Executive Director are hereby authorized to execute the Termination of Lease Agreement forms to convey the property covered by the Lease and the v1

7 Ground Lease Agreement between the City and the Authority, June 29, 2005 back to the City. The motion for the adoption of the foregoing resolution was duly seconded by member and, after a full discussion thereof and upon a vote being taken thereon, the following voted in favor thereof: and the following voted against the same: whereupon the resolution was declared duly passed and adopted v1 2

8 STATE OF MINNESOTA WRIGHT COUNTY I, the undersigned, being the duly qualified and acting Secretary of the Housing and Redevelopment Authority of the City of Buffalo, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the Board of Commissioners, duly called and held on the date therein indicated insofar as such minutes relate to the Resolution Calling Prior Bonds. WITNESS my hand on, Secretary v1 3

9 EXHIBIT A NOTICE OF CALL FOR REDEMPTION $4,380,000 PUBLIC FACILITY LEASE REVENUE BONDS, SERIES 2005 (CITY OF BUFFALO, WILD MARSH GOLF COURSE) HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF BUFFALO, MINNESOTA, WRIGHT COUNTY, MINNESOTA NOTICE IS HEREBY GIVEN that by order of the Board of Commissioners of the Housing and Redevelopment Authority of the City of Buffalo, Minnesota, Wright County, Minnesota (the "Authority"), there have been called for redemption and prepayment on February 1, 2016 those outstanding bonds of the Authority designated $4,380,000 Public Facility Lease Revenue Bonds, Series 2005 (City of Buffalo, Minnesota, Wild Marsh Golf Course), dated as of June 29, 2005, having stated maturity dates or subject to mandatory redemption in the years 2016 through 2027, inclusive, and totaling $3,555,000 in principal amount and having CUSIP numbers listed below: Year CUSIP Number* P AL P AP P AT P AW4 The bonds are being called at a price of par plus accrued interest to February 1, 2016, on which date all interest on said bonds will cease to accrue. Holders of the Bonds hereby called for redemption are requested to present their Bonds for payment, at Bond Trust Services Corporation, 3060 Centre Pointe Drive, Roseville, MN Dated: December 17, BY ORDER OF THE BOARD OF COMMISSIONERS, HOUSING AND REDEVELOPMENT AUTHORITY OF THE CITY OF BUFFALO, MINNESOTA *The Authority shall not be responsible for the selection of or use of the CUSIP numbers, nor is any representation made as to their correctness indicated in the notice. They are included solely for the convenience of the holders. A v1 Return to Agenda