07-17-06 Regular
CITY OF RICHFIELD, MINNESOTA
MONDAY, JULY 17,2006
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL
COUNCIL CHAMBERS
6700 PORTLAND AVENUE
7:00 P.M.
AGENDA
Call to order
1. Approval of minutes of (1) Special HRA Meeting of June 26, 2006; (2) Continued
Special HRA Meeting of June 30, 2006; and (3) Special HRA Meeting of July 10,
2006
Notes:
2. HRA approval of agenda
3. Consideration of contract with Julianne Schweitz for Livable Communities Team/Richfield
Rental Property Program beginning August 1, 2006 for 12 months
Staff Report No. 32
Notes:
4. Consideration of assignment of mortgage for 7445-1Oth Avenue to C & M Real Estate
Services, Inc.
Staff Report No. 33
Notes:
5. . Consideration of Request for Qualifications with developers for northeast quadrant of 76th
Street and Lyndale Avenue
Staff Report No. 34
Notes:
6. Consideration of proceeding with Penn Crossings neighborhood study
Staff Report No. 35
Notes:
7. Consideration of plan for improvements at City Bella
Staff Report No. 36
Notes:
8. Public hearing regarding resolution authorizing sale of real property to Ryan Companies
US, Inc.; Cedar Point Commons
Staff Report No. 37
Notes:
9. Consideration of resolution requesting City Council to call public hearing on modification of
redevelopment plan for Richfield Redevelopment Project Area and establishing Cedar
Avenue Tax Increment Financing District and referring modified plan to Planning
Commission
Staff Report No. 38
Notes:
10. Consideration of resolution amending escrow agreement and authorizing execution and
delivery into escrow of taxable limited revenue note for Ryan Companies US, Inc.
Staff Report No. 39
Notes:
11. Consideration of resolution approving first amended stipulation of final settlement with
Marvin Johnson, owner of Air Care-Go, 6300-20 Cedar Avenue
Staff Report No. 40
Notes:
12. Executive Director report
Notes:
13. Claims and payroll
Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must
be made at least 96 hours in advance to the City Clerk at 612-861-9738.
AGENDA ITEM # 3
REpORT # 32
.....
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JULY 17, 2006
REpORT PREPARED By:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
REpORT PRESENTER:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED By EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of Livable Communities Team/Richfield Rental Property Program contract for
2006-2007.
1. RECOMMENDED ACTION:
By Motion: Approve the execution of a Contract with Julianne
Schweitz be innin Au ust 1, 2006 for 12 months.
I II. BACKGROUND I
Julianne Schweitz has contracted with the Housing and Redevelopment Authority
(HRA) for several years. In the beginning Julianne worked extensively with
apartment owners, managers and staff on issues related to rental apartments; best
practices for tenant screening and City Code Compliance. Julianne's
responsibilities have shifted with the needs of the City. More recently the City has
experienced an increase in the number of smaller rental properties being owned
and/or managed by people with little understanding of their rights and
responsibilities. Much of the growth in rental property has been with single family
homes. Often residents of these rental properties also lack knowledge of their
rights and responsibilities.
071706 Julianne
This past year Julianne has worked with Community Development and Public
Safety staff and established a task force to pursue the Richfield Rental Property
Program (R2P2).
Attached is the Proposed Intention Statement for 2006-2007.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. It is important that all forms of home ownership and all forms of
tenancy be successfully integrated into the community. This
integration is a hallmark of a viable community.
I B. CRITICAL ISSUES I
. Rental property is an important part of the housing supply in Richfield.
A strategy for dealing with this issue is needed.
Ic. FmANC~L I
. The Contract would be for a 12-month period not to exceed $15,000.
This funding is accommodated in the budget for 2006-2007, which is
now being prepared for presentation to the HRA in August.
I D. LEGAL I
. The HRA standard form contract would be utilized.
I IV. ALTERNATNE RECOMMENDATION(S)
. Delay approval.
. Reject the proposal.
I V. ATTACHMENTS I
. Proposed Intention Statement for 2006-2007
I VI. PRmCIP AL PARTIES EXPECTED AT MEETmG
. Juliann Schweitz
3-1
Richfield
Intention Statement for August 2006 - July 2007
Issue: Single-family property owners renting a portion of their home, or all of it, fall
between the cracks of Richfield's rental property code, which covers dwellings of two (2)
or more units. Owners renting their property are commonly unaware of laws that give
them both rights and responsibilities.
The one-year old Richfield Rental Property Pro2;ram (R2P2) works with homeowners
and renters, to help them maintain healthy and safe standards through compliance and
training.
The following objectives will serve as ongoing efforts toward common goals. These
include the following.
. A. Change current occupancy ordinance and enforcement regulations. The
City Council has approved R2P2s work toward rewriting a portion of the housing
code in order to better regulate occupancy issues.
. B. Public awareness of our desire to partner with single-family property
owners. Look at writing articles for the Sun Current, include changes to code and
other objectives on the City website.
. C. Create Rental Property Owners Handbook for property owners and/or
those who purchase single-family homes. (Or up to 14 units.) Educate our
owners about renting their property. The majority of people who decide to rent a
room or their home are unaware of the laws, rights and responsibilities for which
they will be accountable. Included in this packet would be City
expectations/ordinance information, resources for help, and invitations to
available training.
. D. Take proactive/preventive measures by creating teaching tools for
residents who rent single-family homes/rooms. These tools would be marketed
to the owners as incentive for their renters to maintain healthy, safe environments.
Many of our renters are from varying cultures where cooking and cleaning basics
differ from expectations here.
. E. Select best mediation efforts to apply within City. This intention is two-
fold. One, to point to a method of conflict resolution for residents who have
complaints against their neighbor. With mediation available, residents may be
better able to resolve conflicts minimizing City Hall involvement. Second, when
residents call City Hall, concerns could be decelerated through staff training in
how to communicate through difficult issues.
3-~
Richfield
Intention Statement for August 2006 - July 2007
Page 2
· F. Design training sessions specifically to meet the needs of single-family,
duplex, and up to 14 units, rental property owners. Our Crime Free Multi-
Housing training can be used as the basis of these sessions. The objective is to
make this information readily and easily available so that owners will take the
time to learn and understand how to productively and successfully rent their
property. The City is interested in partnering with them in this endeavor.
· G. Look into raising licensing fees (Appendix D) in order to help pay for the
handbook and other objectives.
· H. Creatively design incentives for property owners to attend training or be
otherwise educated through our efforts
· I. Talk to other cities about their experiences with the same issues. Identify
issues, best practices, working ordinances, creative resources, etc. Richfield has
often taken a leadership role in working with others toward resolving similar
problems and issues.
AGENDA ITEM # 4
REpORT # 33
......
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JULY 17, 2006
REpORT PREPARED By:
KELLY BERG, HOUSING COORDINATOR
NAME, TITLE
REpORT PRESENTER:
BRUCE NORDQUIST, HOUSING AND
REDEVELOPMENT 11ANAGER
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of approval regarding Assignment of Mortgage for 7445 10th Avenue to C & M
Real Estate Services, Inc.
I. RECOMMENDED ACTION:
By Motion: Approve attached Assignment of Mortgage for 7445 10th
Avenue to C & M Real Estate Services, Inc.
I II. BACKGROUND I
The homeowner at 7445 10th Avenue participated in the Housing and
Redevelopment Authority's (HRA) Richfield Rehabilitation Deferred Loan Program
in January of 2001. The program is designed to assist low to moderate-income
households with needed home improvements. Federal Community Development
Block Grant (CDBG) funds received from Hennepin County finance the loans. The
HRA placed a $14,945 lien on the property for the total amount the homeowner
borrowed to do the improvements. The lien remains on the home for 30 years
unless an event of default occurs such as a mortgage foreclosure on the property.
Mortgage foreclosure proceedings were started in the spring of 2005. A redemption
period followed where the homeowner had an opportunity to redeem. If the
homeowner does not redeem during this period, which in this case they did not, the
HRA loses its mortgage. However, C & M Real Estate Services, Inc. approached
0717067445 10th Ave
the HRA offering to buy the mortgage for $9,000. The HRA has two options: 1)
lose the mortgage amount and therefore not get any payment or 2) assign the
mortgage to C & M Real Estate Services, Inc. and recover $9,000.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The HRA administers the CDBG Deferred Loan Program with
Hennepin County.
. Loans in default require an HRA response.
I B. CRITICAL ISSUES I
. C & M Real Estate Services, Inc. must act by the end of July.
. Any funds paid to satisfy a loan, or in this instance to recover a portion
of a loan on a property in default are returned to Hennepin County and
subsequently to the HRA to fund more loans.
I C. FINANCIAL I
. The HRA can recover $9,000.00 or 60% of the CDBG funds
committed.
. There are not enough funds available for the HRA to purchase the
property, another way of protecting the recovery of the full lien
amount.
I D. LEGAL I
. Legal counsel reviewed the attached Assignment of Mortgage.
I IV. ALTERNATIVE RECOMMENDATION(S) I
· Do not assign mortgage to C & M Real Estate Services, Inc. and lose all the
CDBG funds.
I V. ATTACHMENTS
. Assignment of Mortgage
I VI. PRINCIP AL PARTIES EXPECTED AT MEETING
. N/A
4-1
Assignment of Mortgage
Date:
, 2006
FOR VALUABLE CONSIDERATION, The HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF RICHFIELD, a body corporate and politic
of the State of Minnesota, Assignor, hereby sells, assigns and transfers to C & M Real
Estate Services, Inc., a Minnesota Corporation, the Assignor's interest in the Mortgage
recorded April 29th, 2002, executed by Marlene E. Fedora, single, as Mortgagor, to The
HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, and filed as Document No. 7713333 in the office of the Recorder of
Hennepin County, Minnesota, Together with the debt thereby secured. For the real
property located in Hennepin County, Minnesota, described as follows, to wit:
Lot 9, Block 1, Sunnyside Acres
ASSIGNOR:
The HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD
By
Its Chairperson
By
Its Executive Director
State Of Minnesota }
}SS.
County Of Hennepin}
On this day , 2006 before me appeared Suzanne M.
Sandahl, the Chairperson of The HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD to me personally known to be the person
described in and who executed the foregoing instrument.
Notary Seal
Signature of Notary Public or other Official
4-~
State Of Minnesota }
}ss.
County Of Hennepin}
On this day , 2006 before me appeared Steven L.
Devich, the Executive Director of The HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF RICHFIELD to me personally known to be
the person described in and who executed the foregoing instrument.
Notary Seal
Signature of Notary Public or other Official
This Instrument was prepared by:
C & M Real Estate Services, Inc.
PO Box 756
Anoka, MN 55303
AGENDA ITEM # 5
REpORT # 34
.......
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JULY 17, 2006
REpORT PREPARED By:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
REpORT PRESENTER:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
DEPARTMENT DIRECTOR REVIEW:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of a Request For Qualification from developers for the northeast quadrant of
76th Street and L ndale Avenue.
1. RECOMMENDED ACTION:
By Motion: Direct staff to pursue a "Request For Qualifications" with
developers for the northeast quadrant of 76th Street and Lyndale
Avenue.
I II. BACKGROUND I
At the June 26, 2006 Housing and Redevelopment Authority (HRA) meeting it was
reported by staff that the LaurentlSchatzlein developer group would not pursue
redevelopment of this site. The HRA directed staff to undertake an informal survey
of developers to determine possible interest in redevelopment.
Two developers with experience in mixed use developments in the metro area were
contacted; the Beard Group and Metro Plains. Each indicated an interest in
pursuing the feasibility of redevelopment of this quadrant. It is important to
understand that the expression of interest took place as part of a telephone
conversation. Staff during the conversation enumerated the facts of the situation.
With those facts they indicated interest in exploring the feasibility of the project in
071706 76th Lyndale
more detail. Neither of them was deterred by the fact that Laurent/Schatzlein were
unable to obtain financing.
As a part of the staff report for the June meeting, the lack of congruence between
the Comprehensive Plan anp Zoning Ordinance was noted. The Comprehensive
Plan at this location guides for mixed use in a multi story structure. The zoning
regulates for single family detached housing along Garfield Avenue and C-2 general
commercial along Lyndale Avenue. Staff is exploring, at this point, the concept of a
PC-2 zoning district with some minimum standards which could include building
height.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. This location has been identified for redevelopment by the HRA.
. The HRA directed staff to determine interest on the part of other
developers in redeveloping this site.
I B. CRITICAL ISSUES I
. It is desirable to distribute as quickly as possible a Request For
Qualifications (RFQ) to keep the process moving. Staff will identify
six-eight recipients including Beard and Metro Plains.
. An RFQ helps to identify the most qualified developer for the
opportunity based on their previous experiences.
. Possible mixed use combinations might include retail and housing (for
sale or rental) or retail and office or retail office and housing.
. At the September or October meeting, a review of the responses will
be presented for action.
I C. FINANCIAL I
. No unusual cost to undertake distribution and evaluation of RFQ's.
I D. LEGAL
. No significant items at this time.
I IV. ALTERNATIVE RECOMMENDATION(S)
. Delay this matter.
. Do not pursue a developer.
I V. ATTACHMENTS
. N/A
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. N/A
AGENDA ITEM # 6
REpORT # 35
.......
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JULY 17, 200
REpORT PREPARED By:
BRUCE NORDQUIST, HOUSING AND
REDEVELOPMENT. MANAGER
NAME, TITLE
REpORT PRESENTER:
BRUCE NORDQUIST, HOUSING AND
REDEVELOPMENT 11ANAGER
DEPARTMENT DIRECTOR REVIEW:
NAME, TITLE
REVIEWED BY EXECUTNE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of proceeding with a Penn Crossings Neighborhood Study.
I. RECOMMENDED ACTION:
By Motion: Authorize the attached Penn Crossings Neighborhood
Stud .
I II. BACKGROUND I
Building on the visioning/planning work performed by the University of Minnesota
students, Hoisington Koegler Group Inc. (Hoisington) has prepared a work plan,
timeline, and cost estimate to continue and complete a Master Plan for the
commercial district at 66th Street and Penn Avenue. A copy of their proposal is
attached.
The key elements of the work plan include:
. Area data and visioning refinement.
. Market analysis.
. Land use plan formulation.
. A strategy for growth.
. Multiple communication methods; open houses, newsletters, public meetings.
071706 Penn Crossing
. A Master Plan, portions of which would be incorporated into the revised 2008
Comprehensive Plan.
The study includes the formation of a "Neighborhood Advisory Committee" of
business owners, property owners, and residents. Input by this Committee will
allow the outcomes to be neighborhood tested at key points during the Study. .
The timeline for the work is August 2006 to February 2007.
The cost of the study and the component parts is $69,850. The study includes the
costs incurred by Hoisington and the McComb Group. The costs are consistent
with similar studies that have been performed.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The Housing and Redevelopment Authority (HRA) takes a lead role in
evaluating areas of the City that present challenges and opportunities.
. The commercial area at 66th Street and Penn Avenue needs a Master
Plan.
. A scope of work, timeline, and cost of implementation have been
prepared.
I B. CRITICAL ISSUES I
. Initial visioning and study by a group of students and public input to
date is at a midpoint. The proposal continues the Study to completion.
. Penn Avenue is a unique area where both public and private
improvements are envisioned.
. Public interests and participation has been high signaling the
importance of this area to many.
. Hoisington provides continuity as they partially supervised work by the
students.
. Without a plan for the future, undesirable uses may be introduced,
present challenges maybe left un-addressed, and opportunities maybe
missed.
Ic. FrnANC~L I
. The cost of the Study has been included in the "Development
Opportunities" section of the Revised 2006, Proposed 2007 HRA
Budget which the HRA will receive in August.
. A majority of the work would be completed in 2006 with final work
anticipated in the first quarter of 2007.
I D. LEGAL I
. The cover letter and Scope of Work would be attached to the standard
consulting contract typically used by the HRA and previously reviewed
by legal counsel.
I IV. ALTERNATIVE RECOMMENDATION(S)
. Modify the Scope of Work.
. Adjust the timeline for implementation.
. Discontinue the Study.
. Seek other proposals. Hoisington has consistently demonstrated an
approach to master planning that has yielded desirable/innovative outcomes
for Richfield.
I V. ATTACHMENTS I
. Cover letter and Scope of Work for Penn Crossings
I VI. PRINCIPALPARTIEsEXPECTEDATMEETING I
. Mark Koegler, President, Hoisington Koegler Group Inc.
fo-(
Creative Solutions for Land Planning and Design
Hoisington Koegler Group Inc.
mll
~n
July 11,2006
Mr. Bruce Nordquist
Housing and Redevelopment Manager
City of Richfield
6700 Portland Avenue South
Richfield, MN 55423-2008
Re: Penn Crossings Neighborhood Study Proposal
Dear Mr. Nordquist:
The attached scope of work outlines a process for innovatively merging market expertise with land use
planning to define a strategy for guiding the evolution of the Penn Crossings neighborhood area. It
builds on the foundation of the work completed recently by the University of Minnesota student team.
Neighborhood commercial nodes like Penn Avenue face a variety of physical, market and financial
challenges. Over the past six years, more than 40% of the businesses in the Penn Crossings area have
experienced change. Change will continue. The Penn Crossings Neighborhood Study is focused on
establishing a guide for future change as it specifically relates to existing businesses and the attraction
of new business interests. Penn A venue is not exactly like any other neighborhood commercial node in
the Twin Cities. The planning process will seek to capitalize on the unique strengths of the Penn
Crossings area while addressing existing and future challenges in a realistic manner.
The study will involve staff from HKGi and McComb Group, Ltd. working collaboratively. Both firms
are familiar with the neighborhood area from involvement with the student project. Based on the tasks
identified in the scope of work, the total fee for the Penn Crossings Neighborhood Study is $69,850.00.
If needed, we can certainly make additional changes to the scope of work based on further review by
both City staff and the HRA. As currently structured, it will provide the City with an action oriented
tool to help guide decisions and investments in the area over the next decade or more.
Please let me know if I can provide any additional information.
Sincerely,
Hoisington Koegler Group Inc.
~~"t.d!-
Mark Koegler, ASLA
President
123 North Third Street, Suite 100, Minneapolis, MN 55401-1659
Ph (612) 338-0800 Fx (612) 338-6838
(p-~
Penn Crossings Neighborhood Study
Scope of Work
Project Objective
The objective of the Penn Crossings Neighborhood Study is to integrate market analysis
with land use planning to establish a strategic approach to guiding the evolution of the
neighborhood area over the next decade or more. Its focus will be on recognizing the
unique qualities and location of the area. It will require innovation in addressing both
existing businesses and in ways of attracting new businesses in order to maintain a
thriving, successful neighborhood node in the future. The Penn Crossings Neighborhood
Study will be an action oriented effort - it will contain steps to be taken by both the
private and public sectors designed to realize the overall vision for the area.
Task 1 - Project Kick-off
The Penn Crossings Neighborhood Study will build upon the information collected and
the decisions that were made as part of the 2006 Penn Avenue Visioning Study
completed by students from the University of Minnesota. The project will be coordinated
by a staff team and will include the establishment of a Neighborhood Advisory
Committee made up of project area business owners, property owners and residents. The
Neighborhood Advisory Committee will review information and provide guidance at key
points during the project.
In Task 1, HKGi will review existing plans, studies, reports and other information that
might be relevant to the project. We will also begin compiling information related to the
fmancing of improvements. Task 1 will also involve a refinement of the geographic
information systems database assembled by the University of Minnesota students
including property information, values, permit activity, land use, ownership, etc. Base
maps will be updated and compiled as appropriate from information in HKGi's files and
as provided by the City, Hennepin County and other applicable sources.
Specific subtasks related to this part of the work program include:
1.1 Assist the City in the preparation of a newsletter outlining the Penn Crossings
Neighborhood Study and identifying key dates and activities associated with the
effort.
1.2 Assemble base maps of the project area from information provided.
1.3 Review background information.
1.4 Investigate existing utilities in the study area.
1.5 Collect and review information about existing finance policies, plans and
programs relevant to the project, including tax increment financing plans and tax
abatement policies.
1.6 Investigate the physical forces that might influence the long-range evolution of
the Penn Crossings neighborhood including natural features (vegetation,
Hoisington Koegler Group Inc.
July 11,2006
1
&r3_____ ..~
topography, etc.); man-made features (traffic patterns, zoning, etc.); and other
influences (accessibility to trails and nearby parks, activity levels and hours of
peak operations of adjacent commercial areas, etc.).
1.7 From available data sources, identify soils and contamination issues that would
limit building structures or pose significant cost implications.
1.8 Meet with the staff team to identify and discuss project influences (limits of the
study, properties to be considered for change, infrastructure deficiencies, policy
issues, etc.).
1.9 Assemble a project narrative outlining the common level of understanding. The
narrative will address and summarize the basis for the Penn Crossings Study
including those items that are to be considered "fixed" and those that can be
considered "variable".
1.10 Present the findings of Task 1 to the staff team for review and comment.
1.11 Conduct a meeting with the Neighborhood Advisory Committee to review the
overall project and to present the findings of Task 1.
1.12 Conduct a meeting with the Richfield Planning Commission to review the results
of Task 1.
Task 2 - Market Analysis
McComb Group, Ltd. will conduct market research for the Penn Crossings Neighborhood
Retail District. The objectives of the market research tasks are to identify retail, food
service and office service establishments that are suitable for the Penn Crossings Retail
District.
Subtasks associated with the market analysis include:
2.1 Site Evaluation - The Penn Crossings Retail District will be visited and evaluated
to determine its current tenant mix. Factors to be evaluated include, but are not
limited to access, ingress, egress, visibility, current traffic counts and relationship
to adjacent uses including tenant mix.
2.2 Trade Area Analysis - Previously defined trade area will be analyzed and possibly
adjusted taking into consideration arterial road patterns, drive times, competitive
shopping areas and McComb Group experience. The primary trade area will be
analyzed to identify and quantify those factors that generate support for retail,
food service, services and office service establishments. Factors to be evaluated
include, but are not limited to population, households and household income.
Trade area growth trends will be evaluated for 2000,2005, and 2010. Retail and
service purchasing power trade households will be estimated using McComb
Group's proprietary purchasing power model.
2.3 Future retail sales potential and supportable square feet for the Penn Crossings
Retail District will be estimated taking into consideration competitive impacts,
trade area demographics, purchasing power and estimated market share. Based
on an analysis of purchasing power, future retail and service potential will be
estimated by business type. Estimates of retail and services supportable by sales
potential will be prepared for 2010 using McComb Group's proprietary software
which contains retail sales potential for over 100 business establishments.
Hoisington Koegler Group Inc.
July 11,2006
2
lo____~----- _n___~_________~__ ____________
2.4 Summarize Market Analysis - The results of the market analysis will be
documented in an executive summary with tables and graphics to support
recommendations. The executive summary will contain appropriate graphics and
explanation of findings, conclusions and recommendations.
2.5 Meetings - Nine meetings are included in the market analysis tasks. These
meetings will be designed to communicate the results of the market analysis
findings to planning team members, neighborhood groups and the City of
Richfield staff and City Council.
Task 3 - Prepare and Evaluate Long-Term Growth Alternatives - Agree on Future
Land Use Plan
The Penn Crossings Neighborhood Study needs to fully integrate information learned
during the market analysis with land use planning in order to establish a "road map" for
the future of the Penn Avenue business area. Considering the results of the market
analysis and the results of the student led visioning study, HKGi will examine the
potential long-term evolution of the Penn Crossings Neighborhood area. The "big
picture" scenarios will include all of the portions of the corridor that are currently used
for commercial purposes and applicable residential portions of the project area. At the
big picture scale, project area land uses, densities, pedestrian linkages, transportation,
transit connections, parking, circulation and open space will be considered. This level of
thinking will examine broad scale opportunities and will provide the basis for a more
detailed focus on the potential future land use changes that are likely to occur in the
project area over time.
HKGi will develop two detailed, future land use concepts for the study area using the
results of the Penn Avenue Visioning Study as a base. Concepts will identify preferred
locations for specific land uses and property to be retained and/or converted to other uses.
The concepts will depict long-range future land use alternatives involving a mix of
residential properties at varying densities, commercial uses, public uses and spaces, and
mixed-use properties as well as required parking. Future land use concept alternatives
will be developed using an in-house charrette format involving HKGi staff and other
project team representatives. The Staff Team will be invited to participate in the in-house
sessions.
During this phase of the work, the HKGi project team will meet with the staff team, the
Neighborhood Advisory Committee, the Richfield Planning Commission, the City
Council and the general public. Neighborhood Meeting #1 will be held to present the
future land use alternatives for the study area.
After input has been received on the future land use alternatives, the focus of Task 3 will
shift to the identification of a preferred option. Working with the staff Team, the HKGi
team will refine the alternatives into a preferred alternative that will become the future
land use recommendations for the Penn Crossings Neighborhood area.
Hoisington Koegler Group Inc.
July 11, 2006
3
f..p~5'
Subtasks that are part of Task 3 include:
3.1 Illustrate concepts for the project that depicts the "big picture" thinking for its
long-term evolution.
3.2 Prepare detailed future land use concept alternatives for the study area depicting
varying land uses, building configurations, parking etc. The results, market
analysis and the Penn Avenue Visioning Study will be used as a basis for this
work.
3.3 Review the alternative concepts for compatibility with existing and anticipated
public utilities.
3.4 Review the alternatives to determine compatibility with the existing adjoining
street system and other existing facilities that will remain in place.
3.5 Assemble preliminary cost estimates for public and private improvements
associated with each of the concept alternatives.
3.6 Identify general funding options for public and private improvements.
3.7 Meet with the staff team to review the specific alternative future land use
concepts.
3.8 Meet with the Planning Commission to review the alternative land use concepts.
3.9 Meet with the Neighborhood Advisory Committee to review the alternative land
use concepts.
3.10 Present the "big picture" illustrated project area vision and the alternative future
land use concepts at Neighborhood Meeting #1. Neighborhood Meeting #1 will
involve the general public in an active critique of the planning options.
3.11 Summarize the results of Neighborhood Meeting #1.
3.12 Work with City staff to assemble a project newsletter depicting project progress.
3.13 Meet with the staff team to screen the alternatives and identify a preferred
alternative.
3.14 Assemble the preferred future land use alternative concept.
3.15 Meet with the staff team to review the preferred alternative concept.
3.16 Meet with the Neighborhood Advisory Committee to review the preferred
concept.
3.17 Meet with the Planning Commission and City Council to review the preferred
concept.
3.18 Refine the preferred concept alternative into a future land use plan.
3.19 Meet with the staff team to review the future land use plan.
Task 4 - Formulate Neighborhood Growth Strategy - Define Implementation Steps
Task 3 will result in a future land use plan for the neighborhood that has a sound basis in
market reality. Task 4 builds upon the outcome of Task 3 by specifically addressing
strategies for how the neighborhood is expected to look and function in the future. Its
focus will be on identifying both public and private actions that will be necessary to
realize the goals for the neighborhood that are embodied in the future land use plan. It
Hoisington Koegler Group Inc.
July 11,2006
4
________Jp __1P________
will address regulatory steps that need to be taken as well as financing initiatives that
need to occur.
Based on the future land use plan for the Penn Crossings neighborhood, HKGi will add
sufficient detail to the plan to enable the formulation of implementation strategies and the
identification of appropriate funding mechanisms. General design guidelines for
commercial and residential properties will be assembled consistent with the overall vision
for Penn Crossings. Plan sheets and an illustrative document with photographs,
sketches, diagrams and supporting narrative will be prepared to allow people to fully
understand what will be suggested by the design guidelines.
Cost estimates for public and private components of the study will be assembled. Along
with the future land use plan, cost estimates will be used to establish a framework for
what needs to be done. Task 4 will then focus on identifying appropriate implementation
strategies. Implementation strategies will consider redevelopment constraints posed by
recent changes in eminent domain statutes and will focus on both retention of appropriate
current businesses and the attraction of new business ventures. It will also include a
framework for regulatory changes that need to be subsequently made in order to realize
future land use goals.
The completed plan, in draft form, will be reviewed by the staff team, the Neighborhood
Advisory Committee, the Planning Commission and the City Council. Following an
initial review, Neighborhood Meeting #2 will be held to present the draft plan and
implementation strategies to seek additional input. Revisions to the plan as appropriate
will be made prior to initiation of the formal project approvals process.
4.1 Assemble design guidelines.
4.2 Assemble refined cost estimates for both public and privaty improvements.
4.3 Illustrate character elements and features in key plan areas.
4.4 Identify a framework for comprehensive plan and zoning revisions required to
implement the plan. The Penn Crossings Neighborhood Study will be assembled
in a manner that allows portions of the final report to be directly integrated into
the upcoming 2008 Richfield Comprehensive Plan update.
4.5 Identify and describe the public initiatives required to implement the Penn
Crossings Neighborhood Study.
4.6 Identify other resources that might be used to help strengthen existing businesses
including those of local universities and other governmental entities.
4.7 Prepare funding program associated with implementation of the plan.
4.8 Evaluate the potential for establishing one or more tax increment financing
districts.
4.9 Evaluate the use of tax abatement.
4.1 0 Evaluate other funding tools. HKGi will explore and evaluate the full array of
options that apply to implementing the plan. Tools such as housing improvement
areas may fill in critical gaps in the overall finance plan.
Hoisington Koegler Group Inc.
July 11, 2006
5
lR - L____________________ __ _____
4.11 Review the future land use plan and design guidelines with the staff team.
4.12 Review the implementation strategies with the Neighborhood Advisory
Committee.
4.13 Review the implementation strategies with the Planning Commission and City
Council.
4.14 Complete draft plan revisions based on input received.
4.15 Conduct Neighborhood Meeting #2 in an open house format to receive public
comments on the plan.
4.16 Review the results of Neighborhood Meeting #2 with the staff team and make
fInal adjustments as appropriate.
Task 5 -Public Review and City Approval
Having completed the final draft of the Penn Crossings Neighborhood Study, HKGi will
work with City staff to obtain approvals by the Planning Commission and City Council.
5.1 Prepare materials for the fInal plan for approval by the Planning Commission.
5.2 Prepare materials for the fInal plan for approval by the City Council.
5.3 Prepare necessary revisions.
5.4 Produce the fInal report. A fInal report will be generated incorporating work from
all previous tasks.
5.5 Work with City staff to prepare a fInal newsletter for the project containing a
summary of fIndings and recommendations.
Hoisington Koegler Group Inc.
July 11, 2006
6
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AGENDA ITEM # 7
REpORT # 36
STAFF REpORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JULY 17, 2006
REpORT PREPARED By:
BRUCE NORDQUIST, HOUSING AND
REDEVELOPMENT 11ANAGER
NAME, TITLE
REpORT PRESENTER:
BRUCE NORDQUIST, HOUSING AND
REDEVELOPMENT 11ANAGER
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR:
ITE11 FOR HRA CONSIDERATION:
Consideration of a plan for additional improvements at City Bella.
1. RECOMMENDED ACTION:
By Motion: Request staff to formulate agreements, discuss and
secure feedback about a work plan with affected resident
associations, and return to the HRA to finalize a proposal with City
Bella LLC.
I II. BACKGROUND I
At the December 2005 Housing and Redevelopment Authority (HRA) meeting the
HRA requested staff to assemble a specific proposal that would utilize $500,000
that is due to the City Bella, LLC (Redeveloper) for construction of the public plaza.
The $500,000 was secured from the Metropolitan Council for funding pedestrian
scale improvements adjacent to City Bella. The HRA added conditions that before
the Redeveloper would be compensated for the plaza, the Redeveloper would
commit $500,000 to a skyway between City Bella and Woodlake Centre. An
agreement was authorized by the HRA that would set aside the $500,000 for up to
ten years. At the end of ten years, if the additional $1.5 million estimated to be .
needed for a skyway was not secured, the funds would revert to the Redeveloper.
071706 City Bella
The specific proposal sought by the HRA has been prepared in collaboration with
staff and the Redeveloper. To summarize:
. Streetscape elements, planters and trees, would be added to the front of the
four-story building.
. The pedestrian scale "shepherd hook" lighting would be extended around the
perimeter of the entire southwest quadrant adjacent to the public sidewalks.
. The bright white metal halide fixtures will be replaced with high pressure sodium,
which will provide a "warmer" feel.
. The curb line along Lyndale Avenue would be straightened to remove the bus
pocket and provide more on street parking adjacent to the commercial uses.
. The multiple boxes of traffic signal and switching equipment adjacent to 66th
Street and Lyndale Avenue would be placed in a below grade vault at
approximately the same location.
. Planter edges in and around City Bella would be repaired and improved to
minimize skateboard impacts.
. Relocate the existing bus shelter to north of 66th Street on Lyndale Avenue.
. Public sculpture would be added in two to three locations along Lyndale Avenue
to continue themes of sculpture already installed near K-Mart and Woodlake
Centre quadrants of 66th Street and Lyndale Avenue.
The estimated cost for the scope of work is $471,706. Initial bids received by the
Redeveloper are confirming that the estimated costs are accurate.
The work plan to proceed, if the HRA concurs with the scope of work, includes:
. Communicating the opportunity to make additional improvements without the
HRA and resident associations incurring costs.
. Meeting with the City Bella, Gramercy Park and Lake Shore Drive Associations
to secure feedback and input.
. Formulating an agreement with the Redeveloper.
. Identifying a source of funds to maintain the improvements.
Attached is a summary of costs and concept sketches prepared by Michael
Schroeder, a consulting landscape architect.
The southwest quadrant at 66th Street and Lyndale Avenue has developed over a
20-year period to provide approximately 500 units of housing with a central plaza
connected to Wood Lake Nature Center and downtown shopping and services. The
proposed improvements continue to blend public and private spaces in ways that
enhance the pedestrian scale environment that the community is creating in the
downtown area.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The partnership of the HRA and City Bella LLC is based on a Contract
for Private Redevelopment.
. A different type of pedestrian scale improvement is being proposed for
City Bella rather than a future skyway. New agreements would be
required reflecting this change.
. Input from affected resident associates is needed before finalizing the
work plan and agreements.
I B. CRITICAL ISSUES I
. It is important that the HRA and resident associations not incur added
expense for the Redeveloper to install the improvements.
. Staff contacted VEF Advisors in Chicago, owners of Wood lake Centre,
and they expressed concern that the cost of the skyway connection
would be too high for the business/tenant benefit.
. Staff contacted M&I Bank, now a tenant at Wood lake Centre, and they
were concerned a skyway investment would not provide added
business to warrant the expense.
. Funding for transportation improvements is very limited and very
competitive and a skyway is simply not a priority.
. The City Bella Association has not been asked directly of their interest
in a skyway. However, concerns about limited use and building
security would be obvious concerns. This would be discussed further
when meetings are held with the Association.
. Skyways are a part of the Master Plan for Lakes at Lyndale at this
location. A decision to use the $500,000 in a different way today does
not mean a skyway could not be considered in the future.
. The Redeveloper experienced $104,828 in additional costs for the
Lake Shore Drive crosswalk and 67th StreetlLyndale Avenue
intersection improvements. The Redeveloper has requested that the
difference between the $500,000 and the cost of the scope of
improvements, $471,706; a balance of $28,293 be provided to the
Redeveloper as partial reimbursement for the added expenses.
I C. FINANCIAL I
. The HRA is holding $500,000 until a plan is finalized.
. The HRA and resident association should not incur additional expense
to install the improvements,
I D. LEGAL I
. Legal counsel would be requested to prepare new agreements to
match the Scope of Work.
I IV. ALTERNATIVE RECOMMENDATION(S)
. Consider other improvements.
. Continue to reserve the $500,000 for a skyway.
. Return the $500,000 to the Metropolitan Council.
I V. ATTACHMENTS I
. Summary of work plan and concept drawings.
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. Michael Schroeder
.
II
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AGENDA ITEM # 8
REpORT # 37
.......
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JULY 17, 2006
REpORT PREPARED By:
KA TIA MEDVETSKI,
REDEVELOPMENT SPECIALIST
NAME, TITLE
REpORT PRESENTER:
PATRICK SMITH, COMMUNITY
DEVELOPMENT1{ANAGER
DEPARTMENT DIRECTOR REVIEW:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Public hearing regarding consideration of a resolution authorizing the sale of real property to
R an Com anies US, Inc. Cedar Point Commons.
1. RECOMMENDED ACTION:
Conduct and close the public hearing and by motion: Adopt the
attached resolution authorizing the sale of real property to Ryan
Companies US, Inc. Cedar Point Commons.
I II. BACKGROUND I
. The Contract for Private Development (Developer's Agreement) between the
Richfield Housing and Redevelopment Authority (HRA) and Ryan Companies
US, Inc. (Developer) for Cedar Point Commons (Development Project), and
subsequent amendments thereto, contemplates certain land conveyances
from the HRA to the Developer.
· This action addresses the land owned by the City that will be conveyed to the
HRA and then conveyed by the HRA to the Developer. This is a public
hearing on the conveyance to the Developer.
071706 HRALandSaleRyan
. On June 26,2006 the HRA approved a Purchase Agreement with the City.
The City approved this Purchase Agreement on June 27,2006.
. Time is of the essence to process land sale transactions in order for the
Development Project to proceed.
. At this time, the sale of the real property indicated on the attached map and
delineated in Exhibit A to the resolution to the Developer is being requested.
. At a special HRA meeting on July 25, 2006, a public hearing will be held for
the authorization to sell to the Developer the real property currently owned by
the HRA and certain real property within eminent domain proceedings (gap
parcels).
. The resale of said property to the Developer will be undertaken in
accordance with the Developer's Agreement.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. All real property conveyances are being undertaken in furtherance of
redevelopment in accordance with the provisions of Sec. 11.7 of the
Developer's Agreement.
I B. CRITICAL ISSUES I
. On June 26, 2006 the Planning Commission approved a resolution
determining that certain sales of real properties are consistent with the
Richfield Comprehensive Plan.
. On June 26, 2006 the HRA approved a Purchase Agreement with the
City for certain real properties that are part of this action.
. On July 6 a legal notice of public hearing for the sale of certain real
property in the City to the Developer was made in the Sun Current
newspaper. This notice was for this public hearing by the HRA on
July 17, 2006.
I C. FINANCIAL I
. Land sales to the Developer will be made in accordance with the
Developer's Agreement.
I D. LEGAL I
. Legal counsel has reviewed the attached Resolution and continues to
work with staff on land sale matters.
I IV. ALTERNATIVE RECOMMENDATION(S) I
. Delay or do not approve the land sale to the Developer.
I V. ATTACHMENTS
. Resolution
. Map
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. N/A
g~1
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY
TO RYAN COMPANIES US, INC.
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (the "HRA") desires to develop certain real property in accordance
with a Contract for Private Development with Ryan Companies US, Inc. (the "Developer"),
dated July 27,2005 (the "Contract") and an amendeq First Amendment, dated June 30,
2006, (collectively, the "Contract") said real property described in the attached Exhibit A;
and
WHEREAS, the HRA is authorized to sell real property within its area of operation
after public hearing; and
WHEREAS, a public hearing has been held after proper public notice.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield:
1. A public hearing has been held and the real property listed in the attached Exhibit A
is authorized to be sold to the Developer in accordance with the Contract.
2. The Chairperson and Executive Director are authorized to execute the necessary
documents or other agreements as required to effectuate the sale to the Developer.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 17th day of July, 2006.
Suzanne Sandahl, Chair
ATTEST:
Donna Drummond, Secretary
g ..- d-
EXHIBIT A
Legal Descriptions of Properties
Portions of 6301-6539 All those parts of Lots 1 through 10 inclusive, Block 1, and Lots 1
Cedar Avenue South through 12, inclusive, Block 8, and Lots 3 through 12 inclusive, Block
15, according to the recorded plat thereof, Hennepin County,
Minnesota; lying westerly of the following described line:
Beginning at the WestQuarter Corner of Section 25, Township 28
North, Range 24 West, Hennepin County, Minnesota; thence northerly
along the west line of the Northwest Quarter of said Section 25, North
00 degrees '12 minutes 36 seconds East, a distance of 116.80 feet;
thence North 41 degrees 00 minutes 23 seconds East, a distance of
22.55 feet; thence North 04 degrees 38 minutes 15 seconds East, a
distance of 459.06 feet; thence North 08 degrees 28 minutes 23
seconds East, a distance of 188.35 feet; thence North 03 degrees 59
minutes 48 seconds East, a distance of 1019.41 feet; thence North 00
degrees 10 minutes 57 seconds East, a distance of 64.46 feet to the
north line of Lot 3, Block 15 of said NEW FORD TOWN.
1820 66th Street E Lots 1, 13, and the South 50 feet of Lot 2, Block 1, Iverson's Third
Addition, Hennepin County Minnesota, except portion required for
roadway
1800 66th Street E Lot 14, Block 1, Iverson's Third Addition, Hennepin County, Minnesota,
except portion required for roadway
1720 66th Street E Lot 1, Block 4, Iverson's Third Addition, Hennepin County, Minnesota,
except portion required for roadway
1714 66th Street E Lot 2, Block 4, Iverson's Third Addition, Hennepin County, Minnesota,
except portion required for roadway
1708 66th Street E Lot 3, Block 4, Iverson's Third Addition, Hennepin County, Minnesota,
except portion required for roadway
1700 66th Street E Lot 4, Block 4, Iverson's Third Addition, Hennepin County, Minnesota,
except portion required for roadway
6328 Cedar Avenue S Lot 3 and the North 40 feet of Lot 2, Block 3, Iverson's Third Addition,
Hennepin County, Minnesota
6344 Cedar Avenue S Lot 1 and the South 60 feet of lot 2, Block 3, Iverson's Third Addition,
Hennepin County, Minnesota
6400 Cedar Avenue S Lot 6, Block 2, Iverson's Third Addition, Hennepin County, Minnesota
6412 Cedar Avenue S Lots 4, 5, and the North :Iz of Lot 3, Block 2, Iverson's Third Addition,
Hennepin County, Minnesota
6444 Cedar Avenue S Lots 1, 2 and the South:lz of Lot 3, Block 2, Iverson's Third Addition,
Hennepin County, Minnesota
6520 Cedar Avenue S Lot 4 and the South 71 feet of Lot 5, Block 1, Iverson's Third Addition,
071706 HRALandSaleRyan
~/3
Hennepin County, Minnesota
6315 18th Avenue S Lot 9, Block 3, Iverson's Third Addition, Hennepin County, Minnesota
6321 18th Avenue S Lot 10, Block 3, Iverson's Third Addition, Hennepin County, Minnesota
6327 18th Avenue S Lot 11, Block 3, Iverson's Third Addition, Hennepin County, Minnesota
6333 18th Avenue S Lot 12, Block 3, Iverson's Third Addition, Hennepin County, Minnesota
6339 18th Avenue S Lot 13, Block 3, Iverson's Third Addition, Hennepin County, Minnesota
6345 18th Avenue S Lot 14, Block 3, Iverson's Third Addition, Hennepin County, Minnesota
6401 18th Avenue S Lot 7, Block 2, Iverson's Third Addition, Hennepin County, Minnesota
6409 18th Avenue S Lot 8, Block 2, Iverson's Third Addition, Hennepin County, Minnesota
6415 18th Avenue S Lot 9, Block 2, Iverson's Third Addition, Hennepin County, Minnesota
6421 18th Avenue S Lot 10, Block 2, Iverson's Third Addition, Hennepin County, Minnesota
6427 18th Avenue S Lot 11, Block 2, Iverson's Third Addition, Hennepin County, Minnesota
6433 18th Avenue S Lot 12, Block 2, Iverson's Third Addition, Hennepin County, Minnesota
6439 18th Avenue S Lot 13, Block 2, Iverson's Third Addition, Hennepin County, Minnesota
6445 18th Avenue S Lot 14, Block 2, Iverson's Third Addition, Hennepin County, Minnesota
6509 18th Avenue S Lot 8, Block 1, Iverson's Third Addition, Hennepin County, Minnesota
6515 18th Avenue S Lot 9, Block 1, Iverson's Third Addition, Hennepin County, Minnesota
6521 18th Avenue S Lot 10, Block 1, Iverson's Third Addition, Hennepin County, Minnesota
6527 18th Avenue S Lot 11, Block 1, Iverson's Third Addition, Hennepin County, Minnesota
6533 18th Avenue S Lot 12, Block 1, Iverson's Third Addition, Hennepin County, Minnesota
6314 18th Avenue S Lot 14, Block 6, Iverson's Third Addition, Hennepin County, Minnesota
6320 18th Avenue S Lot 13, Block 6, Iverson's Second Addition, Hennepin County,
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6332 18th Avenue S Lot 11, Block 6, Iverson's Second Addition, Hennepin County,
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6344 18th Avenue S Lot 9, Block 6, Iverson's Second Addition, Hennepin County, Minnesota
6400 18th Avenue S Lot 16, Block 5, Iverson's Second Addition, Hennepin County,
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6408 18th Avenue S Lot 15, Block 5, Iverson's Second Addition, Hennepin County,
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6414 18th Avenue S Lot 14, Block 5, Iverson's Second Addition, Hennepin County,
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1614 66th Street E Lot 2, Block 5, Iverson's Third Addition, Hennepin County, Minnesota,
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1620 66th Street E Lot 1, Block 5, Iverson's Third Addition, Hennepin County, Minnesota,
except portion required for roadway *
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A venue South
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Avenue South and 6500 and except the North 25 feet thereof.
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RICHFIELD HOUSING
& REDEVELOPMENT
AUTHORITY
CEDAR POINT
LAND
CONVEYANCE
PROPERTIES
Legend
...., Cedar Point
L........J Project Boundary
r---1 Land Sale to
L-.J Ryan Companies
US, Inc.
:
~
N
July 17, 2006
AGENDA ITEM # 9
REpORT # J~
........
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JULY 17, 2006
REpORT PREPARED By:
PAT SMITH, COMMUNITY DEVELOPMENT
MANAGER
NAME, TITLE
REpORT PRESENTER:
PAT SMITH, COMMUNITY DEVELOPMENT
MANAGER
DEPARTMENT DIRECTOR REVIEW:
. .",,)
EJI'/ ""',/"'; l
. ~' ,;'
...... ''','
V""
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of a request for the City Council to call a public hearing on the Modification to
the Redevelopment Plan for the Richfield Redevelopment Project Area and the establishment
of the Cedar Avenue Tax Increment Financing District and referral of the Modified Plan to the
Plannin Commission.
1. RECOMMENDED ACTION:
By Motion: Approve the attached Resolution requesting the City
Council of the City of Richfield to take certain actions with respect to
the modification of a Redevelopment Plan for the Richfield
Redevelo ment Pro.ect Area.
I II. BACKGROUND I
Now is the appropriate time to initiate the establishment of the Cedar Corridor Tax
Increment Finance District (TIF District). The TIF District will coincide with the "low
frequency noise" area associated with the new "north-south" runway with the tax
abatement area excepted. (See attached map.)
The TIF District is located within the Richfield Redevelopment Project Area
(Project). The current Project Plan is in need of revision to incorporate the TIF
District into the Project Plan. It is appropriate for the Housing and Redevelopment
071706 Request Call PH for Cedar TIF
Authority (HRA) to request the City Council to call for a public hearing on the
modification of the Project Plan and refer the matter to the Planning Commission for
consideration.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The process prescribed by Minnesota Statutes is being followed.
. On June 28, 2005 the City Council approved the Special Legislation
which made the establishment of the TIF District possible.
I B. CRITICAL ISSUES I .
. The modified Project Plan needs to be in place before Ryan
Companies US, Inc. applies for building permits for buildings on the
west side of 17th Avenue.
. A public hearing by the City Council is proposed for September 26,
2006.
I C. FINANCIAL I
. The portion of Cedar Point west of 17th Avenue is outside the
abatement area. TIF is required.
I D. LEGAL I
. Legal counsel has opined that now is the appropriate time to
undertake this process.
I IV. ALTERNATIVE RECOMMENDATION(S) I
. Do not request the City Council to call a public hearing at this time.
However, the schedule for development on the west side of 17th Avenue will
be negatively impacted and the Cedar Point project jeopardized.
I V. ATTACHMENTS
. Resolution
. Map
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. N/A
q-I
RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
CITY OF RICHFIELD
HENNEPIN COUNTY, STATE OF MINNESOTA
RESOLUTION NO.
RESOLUTION REQUESTING THE CITY COUNCIL OF THE CITY OF
RICHFIELD CALL FOR A PUBLIC HEARING ON THE MODIFICATION OF THE
RICHFIELD REDEVELOPMENT PROJECT AREA AND THE ESTABLISHMENT
OF THE CEDAR AVENUE TAX INCREMENT FINANCING DISTRICT (A
REDEVELOPMENT DISTRICT)
BE IT RESOLVED, by the Board of Commissioners (the "Board") of the Richfield
Housing and Redevelopment Authority, Richfield, Minnesota (the "HRA") as follows:
. WHEREAS, the City Council (the "Council") of the City of Richfield, Minnesota (the
"City") established the Richfield Redevelopment Project Area pursuant to Minnesota
Statutes, Sections 469.174 to 469.1799, inclusive, as amended, in an effort to encourage
the development and redevelopment of certain designated areas within the City; and
WHEREAS, the HRA is proposing the modification of the Richfield Redevelopment
Project Area and the establishment of the Cedar Avenue Tax Increment Financing District,
pursuant to, and in accordance with, Minnesota Statutes, Sections 469.174 to 469.1799
and Sections 469.001 to 469.047, inclusive, as amended;
NOW, THEREFORE BE IT RESOLVED by the Board as follows:
1. The HRA hereby requests that the Council call for a public hearing on September 26,
2006 to consider the proposed adoption of the Modification to the Redevelopment Plan
for the Richfield Redevelopment Project Area and the proposed adoption of the Tax
Increment Financing Plan for the Cedar Avenue Tax Increment Financing District
(collectively, the "Plans") and cause notice of said public hearing to be given as
required by law.
2. The HRA directs the Executive Director to transmit copies of the Plans to the Planning
Commission of the City and requests the Planning Commission's written opinion
indicating whether the proposed Plans are in accordance with the Comprehensive Plan
of the City, prior to the date of the public hearing.
3. The Executive Director of the HRA is hereby directed to submit a copy of the Plans to
the Council for its approval.
4. The HRA directs the Executive Director to transmit the Plans to the county and the
school district(s) in which the Cedar Avenue Tax Increment Financing District is
located not later than August 25,2006.
5. Staff and consultants are authorized and directed to take all steps necessary to
prepare the Plans and related documents and to undertake other actions necessary to
bring the Plans before the Council.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 17th day of July, 2006.
Suzanne M. Sandahl, Chair
ATTEST:
Donna Drummond, Secretary
071706' Request Call PH for Cedar TIF
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AGENDA ITEM # 10
REpORT # 39
.......
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JULY 17,2006
REpORT PREPARED By:
PAT SMITH, COMMUNITY DEVELOPMENT
MANAGER
NAME, TITLE
REpORT PRESENTER:
PAT SMITH, COMMUNITY DEVELOPMENT
MANAGER
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of an amendment to Escrow Agreement and execution and delivery into escrow
of Taxable Limited Revenue Note for R an Com anies US, Inc.
1. RECOMMENDED ACTION:
By Motion: Approve the attached Resolution, which approves an
amendment to the Escrow Agreement and authorizes the execution
and delivery into escrow of the Taxable Limited Revenue Note for
R an Companies US, Inc.
I II. BACKGROUND I
The Richfield Housing and Redevelopment Authority (HRA) and Ryan Companies
US, Inc. (Ryan) are pursuing redevelopment of the Cedar Point area. The HRA's
obligation under the Contract is to execute and deliver to Ryan a Taxable Limited
Revenue Note, which is the means whereby Ryan receives the benefit of the tax
abatement.
On April 12, 2005 the City Council approved property tax abatement of the City's
portion of real estate taxes for 15 years for Cedar Point.
071706 Ryan Escrow Agreement amendment
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. On June 30, 2006 the HRA and City Council entered into an Escrow
Agreement with Ryan to help facilitate the closing on real estate.
. The closing would be further facilitated by having the Note part of the
Escrow.
lB. CRITICAL ISSUES I
. Because the City Council is a party to the Escrow Agreement, Council
approval of the amendment to the Escrow Agreement is also required.
I C. FINANCIAL I
. The Taxable Limited Revenue Note is part of the inducement for Ryan
to undertake Cedar Point.
I D. LEGAL I
. HRA legal counsel drafted the proposed resolution.
. The amendment document will be presented subsequently to the
Chair and Executive Director for signature.
I IV. ALTERNATNE RECOMMENDATION(S) I
. Approve the proposed amendment with added provisions or modifications.
. Do not approve the proposed Agreement and execution.
. Delay consideration.
I V. ATTACHMENTS
. Resolution
I VI. PRINCIPALPARTIESEXPECTEDATMEETING I
. A Representative of Ryan Companies US, Inc.
. HRA Legal Council
10-1
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING EXECUTION
AND DELIVERY OF TAXABLE LIMITED REVENUE NOTE
AND
AUTHORIZING AMENDMENT TO ESCROW AGREEMENT
WHEREAS, on or about July 27,2005, the Housing Authority in and for the City of
Richfield (the "Authority") and Ryan Companies US, Inc. ("Ryan") entered into a Contract
for Private Development (the "Contract") calling for the redevelopment of certain tracts of
land all as fully described in the Contract; and
WHEREAS, the Contract was amended by First Amendment to Contract for Private
Development dated June 30, 2006, (the Contract and First Amendment being referred to
as the "Amended Contract"; and
WHEREAS, in accordance with the terms of the Amended Contract, the HRA is
required to execute and deliver to Ryan its Taxable Limited Revenue Note (the "Note");
and
WHEREAS, on or about June 30, 2006, the HRA, Ryan and the City of Richfield did
enter into an escrow agreement (the "Escrow Agreement") providing for the delivery into
escrow of certain instruments and documents to be held in escrow and thereafter delivered
all in accordance with the terms of the Escrow Agreement; and
WHEREAS it is the desire of the HRA that the Note be executed and delivered into
escrow and that the Escrow Agreement be amended to include the Note.
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
1. The Chair and Executive Director are authorized and directed to execute and
deliver to the Escrow Agent under the Escrow Agreement the Note, in substantially
the form of the Note contained in Exhibit D of the Amended Contract, to be kept in
escrow for delivery in accordance with the terms of the Amended Contract and the
Escrow Agreement.
2. The Chair and Executive Director are authorized and directed on behalf of the HRA,
after consultation with HRA legal counsel, to execute such amendments to the
Escrow Agreement as are necessary to permit the delivery of the Note thereto, and
for the disposition of the Note.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 17th day of July, 2006.
Suzanne M. Sandahl, Chair
ATTEST:
Donna Drummond, Secretary
071706 Ryan Escrow Agreement amendment
~
~
AGENDA ITEM # 11
REpORT # 40
.....
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JULY 17, 2006
REpORT PREPARED By:
PAT SMITH, COMMUNITY DEVELOPMENT
MANAGER
NAME, TITLE
REpORT PRESENTER:
PAT SMITH, COMMUNITY DEVELOPMENT
MANAGER
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR'
ITEM FOR HRA CONSIDERATION:
Consideration of approval of an amended stipulation of final settlement with Marvin Johnson,
owner of Air Care-Go, located at 6300-20 Cedar Avenue.
I. RECOMMENDED ACTION:
By Motion: Adopt the attached Resolution approving the First
Amended Stipulation of Final Settlement with Marvin Johnson, owner
of Air Care-Go, located at 6300-20 Cedar Avenue.
I II. BACKGROUND I
On November 21, 2005 the Housing and Redevelopment Authority (HRA)
authorized eminent domain proceedings for 6300-20 Cedar Avenue.
On February 27,2006 the HRA approved a settlement with Mr. Marvin Johnson,
owner of 6300-20 Cedar Avenue. Under the settlement, the HRA paid Mr.
Johnson $675,000 for his real estate. Mr. Johnson would vacate the property no
later than November 1, 2006.
6300 Cedar settlement
This property is a key location withih' the site and the HRA is responsible for
providing this site to Ryan. If it isn't available when needed by Ryan, the delays
could be costly to the HRA. For example, if Mr. Johnson's property was
unavailable until November 1 st, site grading by Ryan Companies US, Inc. (Ryan)
would have to occur in stages and utilities would need to be relocated around the
property.
Under the proposed First Amended Stipulation, the HRA would deposit $100,000
with the District Court and Mr. Johnson would vacate the property on or before
September 30, 2006, at which time Mr. Johnson would receive the deposit.
The attached proposed Final Amended Stipulation is in a draft form. The final
proposed First Amended Stipulation will be presented to the HRA at their
meeting on July 17th.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. On July 27,2005 the HRA entered into a Contract for Private
Development with Ryan Companies US, Inc.
I B. CRITICAL ISSUES I
. This proposed First Amended Stipulation best meets the needs of
Mr. Johnson, Ryan and the HRA.
I C. FINANCIAL I
. The $100,000 is available from HRA funds.
I D. LEGAL I
. HRA legal counsel has been an integral part of the negotiation
process and drafted the proposed First Amended Stipulation.
I IV.
ALTERNATIVE RECOMMENDATION(S)
. Reject the proposed settlement.
Iv.
ATTACHMENTS
. Resolution
. Draft First Amended Stipulation of Final Settlement with Mr. Johnson
I VI.
PRINCIPAL PARTIES EXPECTED AT
MEETING
. HRA legal council
6300 Cedar settlement
J 1-(
HRA RESOLUTION NO.
APPROVING AMENDMENT TO SETTLEMENT OF EMINENT DOMAIN
PROCEEDING
WHEREAS, the Board of Commissioners is the official governing body of the
Housing and Redevelopment Authority in and for the City of Richfield ("HRA"); and
WHEREAS, on November 21, 2005, by Resolution No. 958 the Board of
Commissioners of the HRA authorized and directed the acquisition of the real estate
which is legally described in Exhibit A attached hereto ("Subject Property")by use of
eminent domain proceedings; and
WHEREAS, counsel for the HRA filed a petition in the district court for Hennepin
County on December 7, 2005 to acquire the Subject Property by eminent domain
proceedings and scheduled a hearing before the judge to whom the matter had been
assigned for February 6, 2006; and
WHEREAS, counsel for the owners of the Subject Property (listed on Exhibit B,
hereafter "Owners") advised counsel for the HRA that the Owners objected to the taking
of the Subject Property so that the attorneys asked the court to schedule a trial in district
court for consideration of whether there is a public purpose and a necessity for the
taking of the Subject Property; and
WHEREAS, on February 27,2006, the HRA approved a mediated settlement
agreement between the HRA and the Owners under which the HRA paid a total of
$645,000 to the Owners and deposited $30,000 with the District Court Administrator to
be held until after the Owners vacate the Subject Property and the HRA agreed that the
Owners could occupy the Subject Property until November 1, 2006, at the Owners'
option; and
WHEREAS, the HRA may incur the obligation to pay the redeveloper of the
Subject Property a significant amount for extraordinary damages if the HRA is not able
to deliver possession of the Subject Property until after November 1, 2006; and
WHEREAS, HRA staff have negotiated an amendment of the Stipulation of Final
Settlement under which HRA will have the option to advance the date by which Owners
will be obliged to vacate the Subject Property to on or before September 30,2006,
which would be financially beneficial to the HRA;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF
COMMISSIONERS OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN
AND FOR THE CITY OF RICHFIELD IN REGULAR MEETING ASSEMBLED, that the
First Amended Stipulation of Final Settlement attached hereto as Exhibit B is hereby
approved and the Executive Director and the Chair of the HRA are authorized to
4
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execute said agreement and take all steps necessary in accordance with said
agreement,
Adopted by the Housing and Redevelopment authority in and for the City of Richfield,
Minnesota this 17th day of July, 2006.
Suzanne Sandahl, Chair
ATTEST:
Donna Drummond, Secretary
5
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EXHIBIT A
Leqal Description of Subiect Property
6300 Cedar Avenue South 26-028-24-11-0061
Richfield, MN
The North 33 feet of Lot 4, Block 3;
All of Lot 5, Block 3; and the South 17
feet of Lot 6, Block 3, all in "Iverson's
Third Addition," Hennepin County,
Minnesota.
(Abstract property)
6320 Cedar Avenue South 26-028-24-11-0060
Richfield, MN
The South 67 feet of Lot 4, Block 3,
"Iverson's Third Addition," Hennepin
County, Minnesota.
(Abstract property)
1
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Case Type: Condemnation
STATE OF MINNESOTA
DISTRICT COURT
COUNTY OF HENNEPIN
FOURTH JUDICIAL DISTRICT
The Housing and Redevelopment Authority in
and for the City of Richfield, a public body
corporate and politic under Minnesota law,
File No. 27-CV-05-18463
Petitioner,
vs.
FIRST AMENDED
STIPULATION
INAL SETTLEMENT
is entered into this _ day of July, 2006, by and among The Housing
and Redevelopment Authority in and for the City of Richfield, a public body corporate and
politic under Minnesota law, located at 6700 Portland Avenue, Richfield, Minnesota 55423,
Petitioner herein ("HRA") and Respondents Marvin and Deborah Johnson and AIR CARE-GO,
293774vl RJL RC125-260
1
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INC. (collectively "Objecting Respondents" or "Johnson"), located at 6300 Cedar Avenue South,
Richfield, Minnesota.
I. RECITALS
1.01. HRA commenced this proceeding to acquir
Cedar Avenue, Richfield, MN, which is
incorporated herein ("Subject Property").
1.02. Pursuant to the Stipulation of Fi
March 21, 2006 ("Original Stipulation of Final S
the total amount of damages to be paid to Jo
as a result of the taking of the Subject P
separately negotiated and paid)
Property to HRA by November
atter, dated
on benefits which will be
r possession of the Subject
ement, title of the Subject Property
der Transferring Title and Possession in this matter
istrict Court Administrator and the Receipt of the
d that Johnson agree to amend the Stipulation of Final
option to require Johnson to deliver possession of the Subject
re September 30, 2006. The parties intend that this First Amended
Stipulation of Final Settlement describe the terms under which Johnson will agree to modify the
Stipulation of Final Settlement as requested by HRA.
293774vl RJL RC125-260
2
II-Co
1.05. As modified, this agreement shall constitute the Stipulation of Final Settlement
by, between and among the parties.
II. AGREEMENT
NOW, THEREFORE, in consideration of the pre
good and valuable consideration, the receipt and su
parties hereto hereby agree as follows:
2.01. Incorporation of Recitals. The fo
2.02. Waiver of Objections. Subject t
Objecting Respondents each waive any and
entitled to interpose in this proceeding t
hereby acknowledged, the
tipulation.
ay otherwise have been
(a)
personally;
subject matter and as to them
(b)
of the HRA's taking of the Subject
ocess followed by the HRA in creation of the
pment Project, the adoption of the eminent domain
eedings relating to the acquisition by the HRA of the Subject
rements of Minn. Stat. S 117.042 that the HRA as condemning
ting Respondents at least 90 days notice prior to the transfer of title
and possession of the Subject Property to the HRA (subject to the provisions of this
Agreement).
293774vl RJL RC125-260
3
I (-7
2.03. Entry of Orders. Subject to performance by HRA under this Agreement,
Objecting Respondents, in accordance with the terms stated herein, also stipulate and agree to the
issuance by the above Court of:
(a) Findings of Fact, Conclusions of
Appointing Condemnation Commissioners
matter in the form attached hereto as E
(b) Findings of Fact, Concl
Title and Possession ("Quick Take Order
Exhibit D.
2.04. Mediated Settlement A
Agreement between the parties whic
herein by reference.
Petition") in the above
Transfer of
he Mediated Settlement
it B are hereby incorporated
hat, provided Johnson provides HRA
with marketable title to t
'sh all claims of Johnson and all other respondents
t"), including reimbursement of appraisal fees and
March 31, 2006, the HRA will deposit $30,000 (the "Deposit")
31, 2006, the HRA will pay Johnson $645,000
("Settlement Sum") which is agreed to be fair market value and just compensation due and
owing for land, building and fixtures in the Subject Property, pursuant to this proceeding.
293774vl RJL RC125-260
4
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2.05A. Inducement Deposit. If HRA elects to advance the date by which Objecting
Respondents are obliged to vacate the Subject Property from on or before November 1, 2006 to
on or before September 30, 2006, the HRA shall deposit $100,000 (the "Inducement Deposit")
with the District Court Administrator on or before
remain on deposit as additional security to assure
Respondents as provided in Sections 2.09 thr
makes the Inducement Deposit on or before Se
obliged to vacate the Subject Property on or befo
to make the Inducement Deposit on or befor
be obliged to vacate the Subject Prope
Original Stipulation of Final Settleme
2.06. Sti ulation to
ct Property by Objecting
2006 as provided in the
tioner and Objecting Respondents
ers herein of an award of damages in
11 other respondents (except for any amount which
estate taxes payable in 2005 and previous years or
ssments levied or pending as of February 21,2006).
. Petitioner, its agents and assigns, shall have the right upon
ollowing execution of this Agreement and prior to delivery of
roperty by Objecting Respondents to HRA to enter upon the Subject
Property for the purpose of making inspections, taking soil test and borings, making surveys, and
performing other investigative work by HRA's employees and agents.
293774vl RJL RC125-260
5
Il-q
2.08. No Subleasing. Objecting Respondents agree that they will not sublease or rerent
the Subject Property to any third party after execution of this Agreement and will hold the HRA
harmless, defend and indemnify the HRA against the claims of any tenant not named in Exhibit
A attached hereto for relocation benefits pursuant to feder
2.09. Continued Possession.
continue to occupy the
Subject Property until September 30,2006, pro
(a)
Maintain existing polic
liability
insurance covering all acts of AIR C
employees, agents, representatives an
insurance policies shall name th
. ect Property. All such
(b)
Maintain
Insurance (including
(c)
ctric, natural gas, telephone, garbage
. d of AIR CARE-GO's occupancy of the Subject
e"). However, AIR CARE-GO, INC. shall not have
xes or special assessments during the Possession Period;
t of any repairs which AIR CARE-GO, INC. in its sole
ry during its possession of the Subject Property (notwithstanding
the e HRA reasonably determines that AIR CARE-GO's failure to
undertake repairs has caused the Subject Property, to become a hazard to public health or
safety or a nuisance, the HRA and City shall not be precluded from exercising the City's
statutory right to abate the nuisance or otherwise address the problem and if the City
293774vl RJL RC125-260
6
Ii-to
elects to do so, the HRA or City shall have the right to recover from AIR CARE-GO,
INC. the reasonable costs incurred by the HRA or City in undertaking such repairs as the
City in its reasonable discretion deems necessary to protect the public health or safety or
to abate the nuisance) ("Required Repairs");
(e)
the Subject
Property prior to vacation of the Subjec
(f)
Pay HRA a monthly ren
ore the first
day of each
Settlement Amount and on the first
following: (i) AIR CARE-GO,
or (ii) September 30, 2006.
until the earlier of the
ubject Property to HRA,
. Respondents' failure to ti
In the event of Objecting
y, upon five days' written notice by
to Minn. Stat. S 117.043 compelling delivery of
rwise enforcing the provisions of this Agreement,
of attorneys fees, costs and disbursements in favor of HRA.
Subject to its performance in accordance with this
C. may occupy the Subject Property for the full Possession
Agreement until September 30,2006. If AIR CARE-GO, INC. fails
to vacate the Subject Property on or before September 30,2006 and to deliver possession thereof
to HRA, AIR CARE-GO, INC. shall be in default under this Agreement and shall owe the HRA
liquidated damages in the amount of $1,000 for each day thereafter which shall elapse prior to
293774vl RJL RC125-260
7
II-II
AIR CARE-GO, Inc.'s vacation of the Subject Property, subject to the limits of the Deposit
including accrued interest ("Liquidated Damages").
2.12. Payments From Deposit. If and to the extent that AIR CARE-GO, INC. fails to pay
the cost of Utility Services, Required Repairs, Rent, Liq
ages or other amounts due
from AIR CARE-GO, INC. to BRA pursuant to
CARE-GO, INC.'s occupancy of the Subject
counsel for the BRA, the District Court Admi
disbursements and reasonable attorney fees incurre
h are attributable to AIR
HRA from the Security Deposit and the Induce
2.13.
d, indemnify and hold the
Subject Property arising from
HRA harmless against any and all cla'
the acts of Objecting Responde
occupy the Subject Property .
2.14.
der Approving Petition; and (c) the Court's issuance
e effective date of this Agreement shall be the date of its
e this Agreement.
ces, demands and requests required or permitted to be given under
writing, and shall be personally delivered, deposited in U.S. Mail,
postage paid, registered or certified, return receipt requested, or deposited prepaid for overnight
delivery by a reputable overnight courier service, in any case addressed as follows:
293774vl RJL RC125-260
8
Ifto JOHNSON:
( {--{2
Marvin F. Johnson and Deborah H. Johnson
6300 Cedar Avenue
Richfield, MN 55423
With a copy to:
Howard Roston, Esq.
Malkerson, Gilliland, Martin LLP
1900 U.S. Bank Plaz
200 South Sixth Str
Minneapolis, 5
If to HRA:
Richfield
Attentio
6700 Port
Richfield,
With a copy to:
for notice hereunder by notice given in accordance with the
prior to the effective date of the address change. Notice shall
of personal delivery, two days after the date postmarked, two days
urier for delivery or upon the refusal to accept such service.
2.17. Other Terms. This Agreement shall be governed by the substantive law of the
State of Minnesota. This Agreement may be executed in counterparts, each of which shall be
deemed an original but which together shall constitute one and the same agreement.
293774vl RJL RC125-260
9
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2.18. Nondisparagement. Each of the parties agree that the terms and conditions of this
Agreement are fair and have been negotiated in good faith and that so long as they receive the
bargained for considerations promised to them under this Agreement they will refrain from
publication of oral or written statements disparaging the a
to the HRA's acquisition of the Subject Property.
2.19 . Waiver of Claims. In consider
Amount, Johnson waives any and all claims it
'th HRA's
acquisition of the Subject Property, including but
appraisal fees, costs and disbursements to w
be entitled, but not including relocation
2.20. Ri ht to Further
waIve all further
hearings, proceedings and app
her may elect in order to enforce or
carry out the provisions of
2.21.
roperty as respects the possible interests of parties
n on deposit with the District Court Administrator
ondents in the Subject Property are determined. If Petitioner
title provided by Objecting Respondents, Petitioner shall move
ct to other respondents named in Exhibit A pursuant to Minn. Stat.
terests and Objecting Respondents will appear and support an order
determining that said other respondents have no interest in the Subject Property.
293774vl RJL RC125-260
10
11--1'1
OWNER
The Housing and Redevelopment
Authority in and for the City of Richfield
By:
Marvin F. Johnson
By:
Steven L. Devich, Executive Director
And by:
Deborah H. Johnson
AIR CARE-GO, INC
By:
Marvin F. Johnson, its President
MALKERSON, GILLILAND & MARTIN
LLP
THEHRAOF
By:
Howard Roston, #260460
1900 U.S. Bank Plaza
220 South Sixth Street
Minneapolis, MN 55
(612) 455-6655
293774vl RJL RC125-260
11
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EXHIBIT A
Parcel No.1 (Abstract Property) (PID No. 26-028-24-11-0061)
Property Address: 6300 Cedar Avenue, Richfield, MN 55423
Legal Description of Subiect Property:
All that part of Lot 4, Block 3, lying Nort
33 feet South of the North line of said L
17 feet of Lot 6, Block 3, all in "Iv
recorded plat thereof, and situate in He
Together with abutting streets and alley
thereto upon vacation.
Subject to drainage, utility and street easeme
n the recorded plat.
Subject to easements of record in favor
Description of Takings:
Mutual Service
by merger now kno s Country Mutual
Insurance Company, an Illinois corporation
Centerpoint Energy Resource Corp., a
Delaware corporation, dba Minnegasco
Possible holder of an interest pursuant to
judgment against Deborah Johnson acquired in
Case No. DCTJ 96-11773.
Possible holder of an interest pursuant to
judgment against Debra Johnson acquired in
Case No. DCPD 96-12367.
Possible holder of an interest pursuant to
judgment against Deborah Johnson acquired in
Case No. DCTJ 97-10977.
Possible holder of an interest pursuant to
judgment against Debra Johnson acquired in
Case No. DCTJ 0018075.
Possible holder of an interest pursuant to
Bankruptcy Case No. 4-98-2561, of Debra
Johnson.
293774vl RJL RC125-260
A-I
I I - / (p
U.S. West now known as Qwest Corporation,
a Colorado Corporation
Nature of Interest
Possible holder of an interest pursuant to
Bankruptcy Case No. 4-98-2561, of Debra
Johnson.
Possible holder of an interest pursuant to
Bankruptcy Case No. 4-98-2561, of Debra
Johnso
Tenant
Name
Northern States Power Company, a Minnesota
corporation, dba NSP
Marvin F. Johnson, dba
Market Research Associates
AIR CARE-GO, INC.,
a Minnesota corporation
293774vl RJL RC125-260
A-2
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Parcel No.2 (Abstract Property) (pID No. 26-028-24-11-0060)
Property Address: 6320 Cedar Avenue, Richfield, MN 55423
Legal Description of Subiect Property:
The South 67 feet of Lot 4, Block 3, "Iverson's T . d Addition", according to the
recorded plat thereof, and situate in H~nnepin Co . ta.
Together with abutting streets and aIle
thereto upon vacation.
Subject to drainage, utility and street easements a
Subject to easements of record in favor of City ofRl
Description of Takings:
A.
Name
Marvin F. Johnson and Debor
as . oint tenants
Richfield Bank & Trust C
known as M&I Bank
State Farm Auto Insuranc ,
Mutual Comp
Mutua
by merge
Insurance Co
ce Company,
try Mutual
ois corporation
Possible holder of an interest pursuant to
judgment against Deborah Johnson acquired in
Case No. DCTJ 96-11773.
Possible holder of an interest pursuant to
judgment against Debra Johnson acquired in
Case No. DCPD 96-12367.
Possible holder of an interest pursuant to
judgment against Deborah Johnson acquired in
Case No. DCTJ 97-10977.
Possible holder of an interest pursuant to
judgment against Debra Johnson acquired in
Case No. DCTJ 0018075.
Centerpoint Energy ource Corp., a
Delaware corporation, dba Minnegasco
Possible holder of an interest pursuant to
Bankruptcy Case No. 4-98-2561, of Debra
Johnson.
Possible holder of an interest pursuant to
Bankruptcy Case No. 4-98-2561, of Debra
Johnson.
Northern States Power Company, a Minnesota
Corporation, dba NSP
293774vl RJL RC125-260
A-3
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Marvin F. Johnson, dba
Market Research Associates
Nature of Interest
Possible holder of an interest pursuant to
Bankruptcy Case No. 4-98-2561, of Debra
Johnson.
Tenant
Name
U.S. West now known as Qwest Corporation,
a Colorado Corporation
AIR CARE-GO, INC.,
a Minnesota corporation
City of Richfield
County of Henne in
All other parties unknown, together with
unknown heirs or devisees and souses if an
293774vl RJL RC125-260
A-4
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Exhibit B
This is a mediated settlement agreement ("Agreement") as of February 21, 2006 between the
City of Richfield Housing and Redevelopment Authority ("HRA") and Marvin and Deborah
Johnson and AIR CARE-GO (collectively "Johnson").
Recitals:
The HRA has commenced a condemnation action,
-18463 ("Action").
In the Action, the HRA is seeking to acquire th
in the Petition as Parcels 1, 2 and 3 ("Property'
the HRA's right to condemn the Property.
The HRA and the Johnsons ("Parties") desire to s
this Agreement.
Now, therefore, for good valuable and suf
1.
The HRA will pay to the J 0
the fair market value and j
fixtures that comprise the
subject to easement co
675,000 ("Settlement Sum") as
. ng for the land, building and
ketable title to the Property
2.
The HRA will p
forth in parag
an April 1, 2006 (less the sum set
3.
RA shall deposit $30,000 with the Court (the
vacation of the Property by the Johnsons in
of the Settlement Sum is made the following shall occur:
ulate that the Court may enter an order authorizing title to the
to the HRA upon the payment of the Settlement Sum and the
er title shall transfer as provided for in Chapter 117 of the
es. The HRA and the Johnsons will work on a mutually
Order granting the HRA's Petition.
b. The ons shall vacate from the Property no later than November 1,2006,
provided that, in their sole discretion, the Johnsons may vacate earlier upon 48
hours written notice to the HRA ("Vacation Date"). Nothing contained herein
shall be construed as requiring the Johnsons to vacate prior to November 1,2006.
The HRA will make a diligent effort to obtain the necessary approvals to permit
the Johnsons to remain until November 15, 2006. If the HRA is able to obtain
such approvals, the Vacation Date shall be November 15,2006 or such earlier
293774vl RJL RC125-260
B-1
I [ --d-O
date as the Johnsons may vacate in their sole discretion ("Extended Vacation
Date").
5. From March 1,2006 through the Vacation Date, the Johnsons shall pay to the HRA
rent in the sum of $200.00 per month ("Rent"). The Rent shall be paid by the fifth
business day of each month. If the Johnsons e t to vacate earlier than November 1,
2006 (or November 15, 2006) as set forth abo h 4, Rent shall abate.
6. For as long as they are occupants oft
existing insurance in place and shal
7.
The Johnsons shall have no responsl
the Property from and after the date 0
d against
8.
Provided that the Johnsons vacate the
Vacation Date), and pay all rent a
HRA shall stipulate that the De
tion Date (or the Extended
ate of vacation, the
paid to the Johnsons.
9.
In recognition that the buH
shall not be obligated to p
after the date of this A ree
safety.
be demolished, the Johnsons
ce of the Property from and
law to protect health and
10.
RA as set forth above, the Johnsons
d all claims it may have against the Johnsons arising from or
~ect to approval of by the Board of Commissioners of the HRA
ary 27,2006 or it shall be void. In the event the Agreement is not
efore February 27,2006 the parties shall jointly request the Court to
arch 13, 2006 trial date to a mutually agreeable date.
13. Each of the parties shall pay their own attorneys fees and costs.
293774vl RJL RC125-260
B-2
/ l - d(
Deborah H. Johnson
The Housing and Redevelopment
Authority in and for the City of Richfield
by , its Executive
Director an
Marvin F. Johnson
AIR CARE-GO, INC.
by Marvin F Johnson, President
Malkerson Gilliland Martin L
by Howard A. Roston (260
293774vl RJL RC125-260
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