DISCLAIMER

 

06-0206R


RESOLUTION APPROVING THE TRANSFER TO THE MINNESOTA ASSISTANCE COUNCIL FOR VETERANS OF THE GENERAL PARTNERSHIP INTEREST OF CENTER CITY HOUSING CORPORATION IN MPA LIMITED PARTNERS II LIMITED PARTNERSHIP WITH RESPECT TO A HOME PROGRAM LOAN AGREEMENT, CDBG SRO LOAN AGREEMENT AND CDBG GRANT AGREEMENT WITH THE CITY RELATED TO MEMORIAL PARK APARTMENTS.

BY COUNCILOR GILBERT:

     RESOLVED, by the city of Duluth (city), that the Duluth City Council hereby approves the transfer to the Minnesota Assistance Council for Veterans (MACV) of the general partnership interest of Center City Housing Corporation (Center City) in MPA Limited Partners II Limited Partnership (MPA Limited Partnership) with respect to the following agreements and corresponding notes and mortgages related to Memorial Park Apartments:

     (a)  HOME program loan agreement between city and MPA Limited Partnership dated September 25, 1995 (City Contract No. 17641) in the amount of $108,500;

     (b)  CDBG SRO acquisition loan between city and Center City dated April 24, 1991 (City Contract No. 16261) in the amount of $50,000 and assumed on April 26, 1996, by MPA Limited Partnership;

     (c)  CDBG grant agreement between city, Center City and Housing and Redevelopment Authority of Duluth dated October 29, 1992 (City Contract No. 16721) in the amount of $75,000 as amended by first amendment dated February 14, 1995, assumed on April 26, 1996, by MPA Limited Partnership and amended by second amendment dated June 10, 1996.


STATEMENT OF PURPOSE:  In 1991, Center City acquired and completed a major rehabilitation of the Memorial Park Apartments in West Duluth. The city of Duluth provided funding for the project from several sources. As a result, the property has nine units of family rental housing, and 30 single-room occupancy units. Subsequently, Center City assigned its ownership to MPA Limited Partnership, of which Center City is the general partner, to allow for the use of low-income housing tax credits as part of the rehabilitation project.


Center City now wishes to transfer its general partnership interest in MPA Limited Partnership to the MACV, a Minnesota nonprofit. The transfer of general partnership interest would not affect MPA Limited Partnership’s continued operation of Memorial Park Apartments in accordance with the agreements it currently has with the city.