2019.12.17 EDA Meeting PacketAGENDA
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
• REGULAR MEETING •
TUESDAY, DECEMBER 17, 2019
6:40 P.M.
CRYSTAL CITY HALL
COUNCIL CHAMBERS
1. Call to order *
2. Roll call *
3. Approval of minutes from the November 5, 2019 meeting
4. Consider a resolution adopting a 2020 budget and property tax levy
5. Consider approval of a contract with Center for Energy and the Environment for
administration of home improvement programs from Jan. 1, 2020 through June 30,
2021
6. Consider a resolution authorizing a transfer from the EDA fund to the Park
Improvement fund for the Becker Park project
7. Information items:
a. Recap of Nov. 16 and Dec. 14 project tours
b. Preview of upcoming EDA meetings
8. Other business *
9. Adjournment *
*Items for which no materials are included in the packet
Page 1 of 2
Minutes of the
Economic Development Authority of the City of Crystal
Regular Meeting
November 5, 2019
1. Call to Order
President LaRoche called the regular meeting of the Economic Development Authority of
the City of Crystal (EDA) to order at 6:31 p.m.
2. Roll Call
Upon call of the roll, the following members were present: Jim Adams, Brendan Banks,
John Budziszewski, Julie Deshler, Therese Kiser, Nancy LaRoche and Olga Parsons.
The following staff were present: Executive Director Anne Norris, Deputy Executive
Director John Sutter and City Attorney Troy Gilchrist.
3. Approval of Minutes
Moved by Commissioner Banks (Kiser) to approve the minutes of the October 15, 2019
regular meeting. Motion carried.
4. Consider amending the 2019 contract with Center for Energy and the Environment to
increase the amount for Home Improvement Grants.
Mr. Sutter presented the staff report and answered questions from the board. Future
annual contracts will switch from a January-December period to a July-June period.
Moved by Commissioner Budziszewski (Adams) to adopt amend the 2019 contract with
Center for Energy and the Environment to increase the amount for Home Improvement
Grants. Motion carried.
5. Other Business
Mr. Sutter summarized staff’s meetings with potential developers. The board will be
invited to tour three recently-developed apartment buildings in the area. This will be
followed by additional work sessions about redevelopment opportunities and financing.
6. Adjournment
Motion by Commissioner Budziszewski (Kiser) to adjourn. Motion carried.
The meeting adjourned at 6:52 p.m.
Page 2 of 2
These minutes of the November 5, 2019 meeting of the Crystal Economic Development
Authority were approved by the Authority on ________________ ____, 20___.
______________________________
Nancy LaRoche, President
ATTEST:
______________________________
Julie Deshler, Secretary
___________________________________________________________________________
FROM: John Sutter, Community Development Director
___________________________________________________________________________
TO: Anne Norris, Executive Director (for December 17 meeting)
DATE: December 12, 2019
SUBJECT: Consider a resolution adopting the 2020 HRA tax levy and budget
As part of the annual budgeting process, the EDA formally requests a Housing and
Redevelopment Authority tax levy which would comprise most of its funding. The 2019 levy
was $282,744. Staff is recommending a 2020 levy of $282,744 which is the same as 2019.
Budget Summary: 2018 2019 2020
Actual Adopted Proposed
Revenue 332,377 323,744
Expenditures 401,505 352,952*
YE Cash Balance 3,357,844 2,128,636**
322,744
411,304
2,040,076**
*2019 expenditures do not include the anticipated
$1,150,000 transfer to Park Improvement Fund for Becker
** Year end cash balances for 2019 and 2020 are estimated
and do include the $1,150,000 transfer for Becker
Anticipated 2020 EDA activities:
•Expand beautification efforts beyond the Bass Lake Road area
•Sale of properties currently being held by the EDA (proceeds added to fund balance)
•Home improvement grants for homes outside the redevelopment project area
Adoption of the attached resolution is requested.
EDA STAFF REPORT
2020 HRA Levy
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2019 - 04
RESOLUTION ADOPTING A 2020 BUDGET AND PROPERTY TAX LEVY
AND REQUESTING THEIR APPROVAL BY THE CITY COUNCIL
WHEREAS, the Economic Development Authority of the City of Crystal (the “EDA”) undertakes
redevelopment and housing activities in the City of Crystal, Minnesota (the “City”); and
WHEREAS, pursuant to authority granted by Minnesota Statutes, Section 469.02 and the
enabling resolution of the EDA, the EDA exercises all of the powers of a housing and
redevelopment authority (“HRA”) as described in Minnesota Statues, Section 469.001 to
469.047 (the “Act”); and
WHEREAS, under Section 469.033 Subdivision 6 of the Act, an HRA is authorized to levy and
collect special benefit taxes on all taxable property under the jurisdiction of the HRA, that is,
property in the City; and
WHEREAS, the permitted levy is 0.0185 percent of the estimated market value of the property
in the City.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of
Crystal as follows:
1.The EDA hereby adopts a 2020 budget for housing and redevelopment in the amount of
$411,304.
2.The EDA hereby adopts a 2020 property tax levy of $282,744 for the purpose of funding
the adopted budget in conformance with Section 469.033, Subdivision 6 of Minnesota
Statutes.
3.The Executive Director is authorized and directed to transmit a certified copy of this
Resolution to the City Council of the City of Crystal for its consent and approval as
provided by Section 469.033 of the Act and for certification to the Property Tax Manager
of Hennepin County.
Adopted this 17th day of December, 2019.
_______________________________
Nancy LaRoche, President
_______________________________
Anne Norris, Executive Director
___________________________________________________________________________
FROM: John Sutter, Community Development Director
___________________________________________________________________________
DATE: December 12, 2019
TO: Anne Norris, City Manager (for December 17 EDA meeting)
SUBJECT: Consider approval of a contract with Center for Energy and the
Environment for administration of home improvement programs from
Jan. 1, 2020 through June 30, 2021
In 2018 Crystal began contracting with Center for Energy and the Environment (CEE) to
administer the Crystal Grant Program (formerly the Incentive Rebate Program) and the
Interest Subsidy Program for Community Fix-Up Fund loans.
The table on the following page compares the now-closed 2017 programs with the 2018 actual
amounts, amended 2019 contract, proposed Jan. 1, 2020 - June 30, 2021, and estimated
contracts for subsequent July 1 - June 30 periods.
The 2019-2020 budget includes these program costs, with around 90% coming from the
housing TIF fund and 10% from the EDA fund. The estimated year-end 2019 TIF fund balance
is $1,165,913. After the $1,150,000 Becker Park transfer is authorized on Dec. 17, the
estimated year-end 2019 EDA fund balance is $2,128,636.
In terms of program changes, there are three proposed to take effect on Jan. 1, 2020:
• The minimum project size for home improvement grants will be reduced from $5,000 to
$2,000. This will allow homeowners with smaller projects, especially do-it-yourself
(materials-only) projects, to access the grants.
• The grant percentage will be increased from 20% to 40% for sanitary sewer service line
replacement/lining or disconnecting stormwater drainage from the sanitary sewer. This is
intended to augment the city's efforts to reduce inflow & infiltration into the sanitary sewer
system. In many cases this work will be triggered by, and completed in conjunction with,
the city's utility reconstruction projects (several blocks per year). However, any income-
qualified, owner-occupied residential property in the city is eligible.
• The maximum term for the Community Fix-Up Fund interest rate write-down will be
reduced from 20 years to 15. This change will enable the city funds to serve more
homeowners.
Staff requests EDA approval of the attached contract with CEE for the period Jan. 1, 2020 -
June 30, 2021.
The contract for the subsequent period, July 1, 2021 - June 30, 2022, will be considered by
the EDA in late 2020 when the 2021-2022 budget is adopted.
EDA STAFF REPORT
Home Improvement Program Contract
for Jan. 1, 2020 - June 30, 2021
2017 Actual 2018 Actual2019 Contract 1New Contract 2Next Contract Next ContractExpenditures Expenditures as amended 1/2020 - 6/2021 7/2021 - 6/2022 7/2022 - 6/2023Home Improvement Grants $134,185 $89,325 $207,278 $242,000 $190,000 $200,000Grant Administrative Fee* $39,250 $12,689 $31,092 $36,300 $28,500 $30,000Post-Installation Inspections*3$0 $600 $1,000 $1,500 $1,000 $1,000Annual Administrative Fee*4$15,000 $1,500 $500 $3,750 $2,500 $2,500Subtotal: Home Imp. Grant $188,435 $104,114 $239,870 $283,550 $222,000 $233,500CFUF Loans - Interest Buy-Down5$25,000 $8,961 $25,000 $25,000 $25,000 $25,000CFUF Administrative Fee* $0 $625 $750 $0 $0 $0Subtotal: CFUF Loans $25,000 $9,586 $25,750 $25,000 $25,000 $25,000$213,435 $113,700 $265,620 $308,550 $247,000 $258,500$54,250 $15,414 $33,342 $41,550 $32,000 $33,50025.4% 13.6% 12.6% 13.5% 13.0% 13.0%NOTES:1 These amounts are based on the amended 2019 contract amount which was increased to cover grant commitments made in late 2019.2 The new contract will be for an 18 month period, 1/1/2020 through 6/30/2021. This will enable subsequent contract periods to start on July 1 and end on June 30 of the following year.3 Some projects don't require permits so CEE will do site visits to verify work ($100 per project)4 CEE is increasing its annual fee to $2,500 but eliminating the admin fees for originating CFUF loans. Because the 2020 contract is for an 18-month period, $2,500 will be payable in January 2020 and $1,250 in January 2021.5 The Minnesota Housing Finance Agency will match the city's $25,000 with another $25,000 for the CFUF interest write-down programThis is the contract being considered nowITEMNOTESAdministration as % of Total:TOTAL:*Administrative Costs:
CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND
ENVIRONMENT CEE #______ Page 1
HOME IMPROVEMENT PROGRAM ORIGINATION AGREEMENT
This HOME IMPROVEMENT PROGRAM ORIGINATION AGREEMENT (“Agreement”), dated this _____
day of _____________________, 20____, is made by and between the ECONOMIC DEVELOPMENT
AUTHORITY in and for the City of Crystal, with offices at 4141 Douglas Dr N, Crystal, MN 55422
(“Authority”), and CENTER FOR ENERGY AND ENVIRONMENT, with offices at 212 3rd Avenue North,
Suite 560, Minneapolis, Minnesota 55401 (“CEE”).
RECITALS
A. The Authority has a need for certain professional services and desires to retain CEE to
provide said services, all subject to the terms and conditions contained in this
Agreement.
B. CEE is qualified to provide the desired professional services and desires to provide said
services for the Authority, all subject to the terms and conditions contained in this
Agreement.
NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained in this
Agreement, the parties agree as follows:
1. Services/Scope of Work
1.1 CEE shall in conjunction with the Authority develop and deliver the City of Crystal
Home Improvement Program (hereinafter the “Program”) and more fully described in
Exhibit A attached hereto. All activities delivered under the Program shall be
coordinated with the Authority’s designated Community Development Director, John
Sutter.
1.2 CEE shall assist the Authority staff in marketing the Program. This will include being
on the CEE website and creating an information sheet about the loan program.
1.3 The funding source is exclusively from the Authority.
2. Compensation
2.1 The Authority shall compensate CEE for services provided under this agreement
according to the following schedule and more fully described in Exhibit B attached
hereto:
Annual Administration Fee $2,500 pro-rated monthly and payable as follows:
$2,500 on Jan. 1, 2020
$1,250 on Jan. 1, 2021
Grant Origination Fee 15%
MHFA Interest Subsidy $varies on loan amount and term
Post Installation Inspection Fee $100
The Authority shall compensate CEE only for services completed.
CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND
ENVIRONMENT CEE #______ Page 2
2.2 Upon request, CEE will provide additional marketing services. Hourly rates are
inclusive of all overhead expenses and will be charged only for hours directly related to
marketing. CEE will be reimbursed by the Authority for any non-labor, out-of-pocket
expenses, relating to these services on a dollar-for-dollar basis with no mark-up.
2.3 CEE shall invoice the Authority not more than two times each month. The Authority
shall pay CEE within 20 days of receipt of the invoice.
3. CLIENT’s Obligations
3.1 If requested by CEE, the Authority shall make reasonable efforts to respond
promptly to requests from CEE for information and approvals regarding the
services to be provided under this Agreement.
3.2 If requested by CEE, the Authority shall make reasonable efforts to obtain
information and or permission for access from clients which may be necessary
for CEE to provide the services under this Agreement.
3.3 The Authority shall provide sufficient funding to fund eligible Authority funded
loans. The Authority shall determine the amount of funds allocated to the
Program.
3.4 The Authority shall establish eligibility for the Program and shall provide these
criteria in writing to CEE prior to commencement of any marketing efforts.
3.5 The Authority shall make reasonable efforts to respond promptly to requests from
CEE for information and approvals regarding the services to be provided under
this Agreement.
4. CEE’s Obligations
4.1 CEE shall use its best efforts to provide services under this Agreement in a
professional manner consistent with the care and skill used by reputable
members of CEE’s profession.
4.2 CEE, and all of its employees or agents, shall comply with all statutes,
ordinances, rules, regulations and other laws applicable to the provision of
services under this Agreement.
4.3 CEE shall secure all permits and licenses required for performance of the
services under this Agreement.
4.4 CEE shall not engage in discriminatory employment practices against any
employee or applicant for employment and shall in all respects comply with all
federal, state and local laws, regulations and orders, including without limitation,
Chapter 363 of the Minnesota Statutes, as amended from time to time. Failure
to comply with the provisions hereof shall be deemed a material default under
this Agreement.
CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND
ENVIRONMENT CEE #______ Page 3
5.Term and Termination
5.1 Unless earlier terminated as provided in the following paragraphs, this
Agreement shall become effective on 1/1/2020, and continue through
6/30/2021.
5.2 This Agreement may be terminated by either party, for any reason or no reason,
immediately upon written notice to the other party. In the event this Agreement
is terminated by CEE prior to the expiration of the term set forth in paragraph
5.1, the Authority shall compensate CEE for all services delivered up the date of
termination and CEE shall provide the Authority with such information as the
Authority may request regarding the status of the Program.
5.3 Any termination of this Agreement shall not release either party from their
respective obligations under sections 7 and 8 of this Agreement.
6. Insurance
6.1 During the term of this Agreement, CEE will obtain and maintain insurance in the
amounts listed below:
General Liability $2,000,000 Aggregate Limit
Automobile Liability $1,000,000 Combined Single Limit
Excess Liability $1,000,000 Aggregate Limit
Workers Compensation Statutory Limit
7. Liability and Indemnification
7.1 CEE represents that the services to be provided under this Agreement are
reasonable in scope and that CEE has the experience and ability to provide the
services.
7.2 CEE warrants that any services provided hereunder shall be done in a
professional and workmanlike manner.
7.3 CEE shall indemnify, defend and hold harmless Authority and its officers,
directors, employees and agents from and against any and all claims,
damages, losses, injuries and expenses (including attorneys’ fees and damages
for death, personal injury and property damage) which Authority may incur as a
result of any act or omission by CEE in providing services under this Agreement.
7.4 Authority shall indemnify, defend and hold harmless CEE and its officers,
directors, employees and agents from and against any and all claims,
damages, losses, injuries and expenses (including attorneys’ fees and damages
for death, personal injury and property damage) which CEE may incur as a
result of any act or omission by Authority in discharging its duties under this
Agreement.
CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND
ENVIRONMENT CEE #______ Page 4
8.Confidentiality
Unless otherwise agreed by Authority in writing, CEE shall maintain in confidence and
not disclose to any third party any information obtained regarding the Authority
and/or any of Authority’s clients for which CEE is providing services; provided,
however, that this obligation to maintain confidentiality shall not apply to:
a) Information in the public domain at the time of disclosure;
b) Information which becomes part of the public domain after disclosure
through no fault of CEE; or
c) Information which CEE can demonstrate was known by it prior to the date
of this Agreement.
Notwithstanding the foregoing, CEE shall be entitled to disclose the documents or client
information covered by this paragraph to governmental authorities to the extent CEE
reasonably believes it has a legal obligation to make such disclosures and to the extent
CEE reasonably deems to be necessary; provided, however, that if CEE believes that any
such disclosure is required by law, it shall provide advance notice to the Authority to
provide the Authority with a reasonable opportunity to attempt to obtain an injunction or
other protective order preventing such disclosure.
9. Relationship of Parties
CEE will provide services as an independent contractor under this Agreement.
Neither CEE, nor any of its employees or agents, shall be considered employees of the
Authority for any purpose, and neither shall CEE be eligible for any compensation or
benefits which the Authority may provide to its employees from time to time. CEE shall
be solely responsible for all employment and other taxes applicable to providing
services hereunder, and the Authority will not withhold any taxes or contributions from
the compensation payable to CEE under this Agreement.
10. Notices
All notices, requests, demands and other communications required to be given in
writing under this Agreement shall be given to the other party in person or by mail as
provided in this section. If delivered personally, notice shall be deemed to have been
duly given on the date of delivery. If delivered by mail, such notice shall be sent via
first class U.S. mail, postage prepaid, to the address set forth at the beginning of this
Agreement or such other address as a party may otherwise request by written notice,
and notice shall be deemed duly given three (3) business days after mailing.
11. Assignment
This Agreement shall be binding upon and inure to the benefit of the parties and their
respective heirs, successors and assigns; provided, however, that neither party shall
assign or transfer in any manner, this Agreement or any portion hereof without the
CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND
ENVIRONMENT CEE #______ Page 5
prior written consent of the other party, and any attempt to assign or transfer without
prior written consent shall be void and of no effect.
12. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of
the State of Minnesota.
13. Miscellaneous
13.1 Headings and captions used in this Agreement are for convenience only and
shall not affect the meaning of this Agreement.
13.2 This Agreement contains the entire agreement of the parties and supersedes all
prior agreements, discussions and representations, written or oral, concerning
the subject matter hereof.
13.3 No waiver by the Authority of any term or condition of this Agreement or any
document referred to herein shall, whether by conduct or otherwise, be
construed as a waiver or release of any other term or condition of this
Agreement.
13.4 This Agreement may only be amended in a written agreement signed by both
parties.
13.5 Except as expressly set forth in section 7, the rights and benefits under this
Agreement shall inure solely to the benefit of the Authority and CEE, and this
Agreement shall not be construed to give any rights, benefits or causes of
action to any third party.
13.6 The invalidity or partial invalidity of any provision of this Agreement shall not
invalidate the remaining provisions, and the remainder shall be construed as of
the invalidated portion shall have never been a part of this Agreement.
13.7 CEE shall comply with the provisions of Minnesota Statutes Chapter 13
(Government Data Practices) that are applicable to the Authority and shall not
disseminate any information concerning loan requests of the borrowers without
the prior written approval of the Authority.
13.8 This Agreement may be signed in any number of counterparts, each of which
shall be deemed an original and one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.
CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND
ENVIRONMENT CEE #______ Page 6
ECONOMIC DEVELOPMENT AUTHORITY
in and for the City of Crystal
By: Its:
Print Name
Date:
CONTRACT between ECONOMIC DEVELOPMENT AUTHORITY in and for the CITY OF CRYSTAL and CENTER FOR ENERGY AND
ENVIRONMENT CEE #______ Page 7
CENTER FOR ENERGY & ENVIRONMENT
By: Its: Chief Financial Officer
Meranda Wacek
Date: Tax ID # 41-1647799
Exhibit A - #2808 Page 1
Agreement between Crystal EDA and Center for Energy and Environment
EXHIBIT A
PROGRAM GUIDELINES
This document includes guidelines for the City of Crystal
Grant Program and the MHFA Interest Subsidy Program
Exhibit A - #2808 Page 2
Agreement between Crystal EDA and Center for Energy and Environment
CRYSTAL PROGRAM GUIDELINES
The Crystal Economic Development Authority (Authority) is making funds available for homeowners to
assist with home maintenance and energy improvements. The Crystal Grant and Interest Subsidy
Programs are designed to supplement existing loan programs available from MHFA, CEE, private lenders
and other housing resources. These programs are not intended to be the sole source of improvement
funds available to the homeowners in the City. Center for Energy and Environment shall serve as the
administrator for the Crystal Grant and Interest Subsidy Programs and will secure the most beneficial
financing based on the borrower’s needs independent of the funding source.
Crystal Grant Program
Eligible Project Expenses:
Interior remodeling
Building additions
Finishing basements, attics or similar spaces to convert them into habitable space
Energy efficiency improvements
Exterior building improvements such as roofing, siding, soffits/fascia, windows and doors
Site improvements such as retaining walls, sidewalks, driveways, fences, patios, decks, garages and
the removal of diseased or hazardous trees
Systems such as HVAC, electrical and plumbing
Permanent Landscaping
Ineligible Project Expenses:
Payment for work initiated prior to the grant being approved and closed, unless due to emergency.
Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment, saunas,
whirlpools, etc.)
Furniture, non-permanent appliances (unless part of a kitchen remodel), funds for working capital,
debt service or refinancing existing debts.
Homeowner labor or other in-kind contributions to the project
Minimum Project Size: Eligible Project Expenses must total at least $2,000 to qualify for a grant.
Grant Amount:
20% of Eligible Project Expenses, except as noted below:
Exception: For projects replacing or lining a sanitary sewer service and/or disconnecting stormwater
drainage (sump connections, foundation drains, etc.) from the sanitary sewer, the grant amount is
40% of those particular, itemized project costs. This is intended to augment the city's efforts to
reduce inflow & infiltration into the sanitary sewer system. In many cases this work will be triggered
by, and completed in conjunction with, the city's utility reconstruction projects (several blocks per
year). However, any income-qualified, owner-occupied residential property in the city is eligible.
No property may receive grants totaling more than $10,000 in any calendar year.
Exhibit A - #2808 Page 3
Agreement between Crystal EDA and Center for Energy and Environment
Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of
the City of Crystal. Properties held in a Trust, Townhomes and Condominiums are eligible, subject to
Association Bylaws. Properties may be held in a Contract for Deed. If the property has more than 1
unit, the non-owner-occupied units must be in compliance with the City of Crystal’s rental licensing
requirements.
Ineligible Properties:Dwellings with more than 4 units, cooperatives, manufactured homes, time
shares, properties used for commercial purposes and non-owner occupied properties.
Eligible Recipients: All recipients must be legal residents of the United States, as evidenced by a social
security number, Including: U.S. Citizens, Permanent Resident Aliens, and Non-Permanent Resident
Aliens. TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE.
Ineligible Recipients: Including but not limited to: - Businesses, Foreign Nationals, Non-Occupant Co-
Borrowers, and Properties held in the name of a trust.
Income Limit: The property owner’s household income shall not exceed 110% of the HUD Regional
Median Income based on household size. Income will be determined by the adjusted gross income on
the most recent Federal Tax Return. If a tax return is not required, income will be determined by the
projected gross income for the upcoming 12 months.
Credit Requirements: 1) All mortgage payments must be current, 2) All real estate taxes must be
current, and 3) No defaulted government loans, tax liens or child support.
Bids: Two estimates are required. Only 1 materials list is required for sweat equity projects. All
contractors must be properly licensed
Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity”
basis, but only the purchase of materials and rental of tools or equipment will be considered an Eligible
Project Expense.
Recipient Paid Fees: None
Deadline for Work Completion:All work must be completed within 120 days of the grant closing.
Extensions may be granted by CEE due to weather or similar factors.
Exhibit A - #2808 Page 4
Agreement between Crystal EDA and Center for Energy and Environment
Crystal Interest Subsidy Program
Interest Rate:3% fixed
Amortization Type: Amortizing. Closed-end (Monthly Payments Required)
Loan Amount:Minimum of $2,000 and Maximum of $50,000.
Total Project Cost:The borrower must have sufficient funds necessary to cover the cost of the entire
project (as outlined in the bid(s). Additional funds may come from personal savings, gifts, or other loan
funds.
Loan term: Generally, one year per $1,000 borrowed. This will be somewhat flexible depending on the
size of the loan and the borrower’s ability to repay the loan. The minimum term is 1 year; the maximum
term will be 15 years.
Eligible Properties: 1-4 unit owner-occupied properties located within the geographical boundaries of
the City of Crystal. Townhomes and Condominiums are eligible, subject to Association Bylaws.
Properties may be held in a Contract for Deed.
Ineligible Properties: Dwellings with more than 4 units, cooperatives, manufactured homes, time
shares, properties held in the name of a trust and properties used for commercial purposes.
Eligible Borrowers: All borrowers must be legal residents of the United States, as evidenced by a social
security number, Including: U.S. Citizens, Permanent Resident Aliens, and Non-Permanent Resident
Aliens. TAX IDENTIFICATION NUMBERS (ITIN) ARE NOT ACCEPTABLE.
Ineligible Borrowers: Including but not limited to: - Businesses, Foreign Nationals, Non-Occupant Co-
Borrowers, and Properties held in the name of a trust.
Ownership/Occupancy: Owner- occupied only.
Loan - to - Value Ratio: The ratio of all loans secured by the property, including the new loan, should
not exceed 110% of the property value. Half of the improvement value may be added to the initial
property value.
Income Limit: The property owner’s household income shall not exceed 110% of the HUD Regional
Median Income based on household size or the MHFA income limit, whichever is less. Income for
eligibility will be determined by the projected income for the next 12 months per MHFA guidelines.
Debt - to - Income Ratio: Applicant must have the ability to repay the loan. An applicant who has a debt
to income ratio in excess of 48% will be ineligible to receive financing.
Exhibit A - #2808 Page 5
Agreement between Crystal EDA and Center for Energy and Environment
Credit Requirements: All borrowers must have a minimum credit score of 620 and: 1) All mortgage
payments must be current and reflect no 30 day late payments history in the past 12 month period
(without reasonable explanation). 2) All real estate taxes must be current. 3) No outstanding
judgements or collections (excluding medical). 4) Bankruptcy must have been discharged for at least 18
months prior to loan closing. 5) The redemption period on prior foreclosures must have occurred at
least 18 months prior to the loan application date. 6) Generally, no more than two 60-day late
payments on credit report. Any 60 day late requires a documented explanation and reasonable reasons;
medical, unemployment, divorce. 7) No defaulted government loans.
Multiple Loans per Property:More than one loan per property is allowed, however, the outstanding
balance(s) cannot exceed $50,000.
Eligible Use of Funds: Same as the current MHFA guidelines
Ineligible Use of Funds: Payment for work initiated prior to the loan being approved and closed, unless
due to emergency. Recreation or luxury projects (pools, lawn sprinkler systems, playground equipment,
saunas, whirlpools, etc.), furniture, non-permanent appliances, and funds for working capital, debt
service, homeowner labor or refinancing existing debts are NOT allowed.
Bids: Only one bid/estimate is required. All contractors must be properly licensed
Sweat Equity / Homeowner Labor: Work may be performed by property owners on a “sweat equity”
basis. Loan funds may be used only for the purchase of materials. Loan funds cannot be used to rent
tools/ equipment or compensate for labor.
Loan Security: Determined by MHFA requirements.
Borrower Fees: Borrower will be responsible for a 1% origination Fee (which may be financed),
mortgage filing and service fees, flood certificate, credit report and any other applicable closing fees.
Underwriting Decision: Applicants must have acceptable credit history. CEE will approve or deny loans
based on a credit report, income verification and other criteria as deemed necessary through CEE’s
underwriting guidelines. CEE’s decision shall be final.
Work Completion:All work must be completed within 9 months of the loan closing.
Exhibit A - #2808 Page 6
Agreement between Crystal EDA and Center for Energy and Environment
General Program Conditions
Application Processing: Grants/Loans will be distributed on a first come first serve basis as
recipients/borrowers qualify. Applicants must provide a completed application package including the
following in order to be considered for funding.
Completed and signed application form
Proof of income
Proof of Identity (drivers license, passport, etc.)
Bids or estimates for proposed projects
Other miscellaneous documents that may be required.
Program Costs: Grant/loan origination fees, grants, interest subsidies and post-installation inspection
fees will be paid out of the Program Budget. Program marketing efforts will be billed directly to the City
of Crystal and is a separate expense should the city choose to commission CEE for marketing support.
Total Project Cost: It is the recipient/borrower’s responsibility to obtain the amount of funds necessary
to finance the entire cost of the work. In the event the final cost exceeds the original amount, the
borrower must obtain the additional funds and provide verification of the additional funds in order to
proceed.
Disbursement Process:
Grant: Payment to the contractor (or owner in sweat equity situations) will be made upon completion
of work. An inspection will be performed by a City Inspector and/or CEE to verify the completion of the
work. The following items must be received prior to final disbursement of funds:
Final invoice or proposal from contractor (or materials list from supplier);
Final inspection verification by a City Inspector (or CEE);
Completion certificate(s) signed by borrower and contractor;
Lien waiver for entire cost of work;
Evidence of city permit (if required)
Interest Subsidy Program: Payment is disbursed to borrower(s) after loan closing
Exhibit B - #2808
EXHIBIT B
TOTAL PROGRAM BUDGET $308,550
CRYSTAL PROGRAM BUDGET
A. Crystal Grant Budget Allocation (includes Grants plus Annual Administration Fee, Post-
Installation Inspection Fees and Grant Origination Fees): $283,550
MHFA Interest Subsidy Program Budget Allocation (includes Interest Subsidy plus Origination
Fees): $25,000
Budget Notes:
CEE shall submit monthly invoices for grant origination fees, interest subsidy and post-
installation inspections for that period.
Services performed by CEE will initially be funded from the Total Program Budget as stated
above and paid in accordance with the following schedule.
(1) Annual Administration Fee $2,500 pro-rated monthly and payable as follows:
$2,500 on Jan. 1, 2020
$1,250 on Jan. 1, 2021
(2) Origination Fee: Grant 15% per grant closed
(3) MHFA Interest Subsidy $varies
(4) Post-Installation Inspection Fee $100
3. Marketing
Marketing efforts outside of CEE’s website and loan information are not included in the
administrative budget. Hourly rates are inclusive of all overhead expenses and will be charged
only for hours directly related to the labor of all additional program marketing. CEE will also be
reimbursed by City of Crystal for any non-labor, out-of-pocket expenses relating to these
services on a dollar-for-dollar basis.
___________________________________________________________________________
FROM: John Sutter, Community Development Director
___________________________________________________________________________
TO: Anne Norris, Executive Director (for December 17 meeting)
DATE: December 12, 2019
SUBJECT: Consider a resolution authorizing a transfer from the EDA fund to the Park
Improvement fund for the Becker Park project
As part of the financing package for the Becker Park project, the City Council planned on an
EDA contribution of up to $1,200,000. Upon award of a $50,000 Hennepin County Transit
Oriented Development grant in May 2019, the EDA share was reduced to $1,150,000.
Now that the park is substantially complete, it is time for the EDA to formally authorize this
transfer. The current EDA fund balance is $3,177,375. After the remaining 2019 revenues and
expenditures, and this proposed transfer from EDA to Parks, the estimated year-end 2019
EDA fund balance is $2,128,636.
Adoption of the attached resolution is requested.
EDA STAFF REPORT
Transfer from EDA Fund
for Becker Park Project
ECONOMIC DEVELOPMENT AUTHORITY OF THE CITY OF CRYSTAL
HENNEPIN COUNTY
STATE OF MINNESOTA
RESOLUTION NO. 2019 - 05
RESOLUTION AUTHORIZING A TRANSFER TO
THE PARK IMPROVEMENT FUND FOR THE
BECKER PARK RECONSTRUCTION PROJECT
WHEREAS, the Economic Development Authority of the City of Crystal (the “EDA”) undertakes
redevelopment and housing activities in the City of Crystal, Minnesota (the “City”); and
WHEREAS, pursuant to authority granted by Minnesota Statutes, Section 469.02 and the
enabling resolution of the EDA, the EDA exercises all of the powers of a housing and
redevelopment authority (“HRA”) as described in Minnesota Statues, Section 469.001 to
469.047 (the “Act”); and
WHEREAS, under Section 469.002 Subdivision 14 of the Act, an HRA is authorized to expend
funds on a redevelopment project such as the reconstruction of Becker Park; and
WHEREAS, the reconstruction of Becker Park requires a transfer of $1,150,000 from the EDA
Fund to the Park Improvement Fund; and
WHEREAS, the EDA funds has a sufficient cash balance to make this transfer.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the City of
Crystal that $1,150,000 be transferred from the EDA fund to the Park Improvement Fund.
Adopted this 17th day of December, 2019.
_______________________________
Nancy LaRoche, President
_______________________________
Anne Norris, Executive Director
___________________________________________________________________________
FROM: John Sutter, Community Development Director
___________________________________________________________________________
TO: Anne Norris, Executive Director (for December 17 meeting)
DATE: December 12, 2019
SUBJECT: Information Items:
• Recap of Nov. 16 and Dec. 14 Project Tours
• Preview of Upcoming EDA Meetings
A. Project Tours Recap
November 16:
The Cavanagh, 5401 51st Avenue North
• Affordable senior (55+) apartments
• 4 stories atop a basement parking garage
• 130 units on 4.3-acre parcel (30 units per net acre, 25 units per gross acre)
• All units are affordable at 60% of metro area median income
EDA STAFF REPORT
Information Items
Compass Pointe, 6119 West Broadway
• Affordable apartments
• 3-4 stories atop a basement parking garage
• 68 units on 1.7-acre parcel (40 units per net acre, 32 units per gross acre)
• All units are affordable at 60% of metro area median income
December 14:
Gates of New Hope, 9390 27th Avenue North
• Market-rate apartments
• 4 stories on grade with an attached garage wing
• 32 units on 1.6-acre parcel (20 units per net acre, 15 units per gross acre)
Ironwood, 8400 Bass Lake Road
• Market-rate apartments
• 4 stories atop a basement parking garage
• 182 units on 3.5-acre parcel (52 units per net acre, 42 units per gross acre)
B. Upcoming EDA Meetings
1/7 Annual organizational meeting (election of officers)
1/9 Work session - tabletop map exercise to discuss potential redevelopment sites in
Crystal’s Town Center zoning districts (Bass Lake Road/West Broadway area)
1/21 Work session - TIF presentation from Stacie Kvilvang / Ehlers
Feb. Review TIF policy and provide direction for potential developers as part of 2020
Work Program