07-25-06 Special
REVISED
CITY OF RICHFIELD, MINNESOTA
TUESDAY, JULY 25,2006
SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL
COUNCIL CHAMBERS
6700 PORTLAND AVENUE
4:45 P.M.
Call to order
Roll call
1. Consideration of resolution approving first amended stipulation of final settlement with Marvin
Johnson, owner of Air Care-Go, 6300-20 Cedar Avenue (tabled from July 17, 2006)
Staff Report No. 51
Notes:
2. Public hearing regarding resolution authorizing sale of real property to Ryan Companies US,
Inc.; Cedar Point Commons
Staff Report No. 52
Notes:
3. Matters related to contract for private redevelopment and escrow agreement with Ryan
Companies US, Inc.
Notes:
4. Reconsideration of assignment of mortgage for 7445-10th Avenue to C&M Real Estate
Services, Inc.
Staff Report No. 53
Notes:
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 # ') ]
REpORT # 1
STAFF REpORT
RICHFIELD
SPECIAL HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JULY 25, 2006
REpORT PREPARED By:
PAT SMITH, COMMUNITY DEVELOPMENT
MANAGER
NAME, nnE
REpORT PRESENTER:
P AT SMITH, COMMUNITY DEVELOPMENT
MANAGER
NAME, nnE
REVIEWED BY EXECUTIVE DIRECTOR:
DEPARTMENT DIRECTOR REVIEW:
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.
1. 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
This item was tabled from the July 17 regular Housing and Redevelopment
Authority (HRA) meeting until July 25 in order for the property owners of 6300-20
Cedar Avenue to sign the proposed settlement. The following information and
proposed settlement remain the same as the staff report for the July 17 meeting
except for the reference to the HRA meeting date.
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.
072506 - 6300 Cedar Settlement
Johnson $675,000 for his real estate. Mr. Johnson would vacate the property no
later than November 1, 2006.
This property is a key location within 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 special
meeting on July 25th.
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.
I V. ATTACHMENTS
. Resolution
. Draft First Amended Stipulation of Final Settlement with Mr. Johnson
VI. PRINCIPAL PARTIES EXPECTED AT
MEETING
. HRA legal council
072506 - 6300 Cedar Settlement
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
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 25th day of July, 2006.
Suzanne M. Sandahl, Chair
ATTEST:
Donna Drummond, Secretary
EXHIBIT A
Leqal Description of Subiect Property
6300 Cedar Avenue South 26-028-24-11-0061
Richfield, MN
6320 Cedar Avenue South 26-028-24-11-0060
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)
The South 67 feet of Lot 4, Block 3,
"Iverson's Third Addition," Hennepin
County, Minnesota.
(Abstract property)
.
Exhibit B
Case Type: Condemnation
STATE OF MINNESOTA
DISTRICT COURT
COUNTY OF HENNEPIN
The Housing and Redevelopment Author"
in and for the City of Richfield, a public b
corporate and politic under Minnesota law,
Petitioner,
vs.
C
Ivers
of Rich
parties unk
heirs or devise
Marvin F. Johnson and Debor
Johnson, as joint tenants; Richfield
Trust Co., by merger now know
Bank; State Farm Auto Insurance,
Farm Mutual Auto Insurance
Nancy K. Olson; Hy's
Incorporated, a Minnes
Mutual Service Casu
merger now known
Insurance Company, a
CenterPoi Res
Delaw dba
Nort Co
Mi SP; U. est
rporation, a
F. Johnson,
ciates; AIR
corporation;
rporation; City
nepin; all other
r with unknown
uses, if any,
FIRST AMENDED
STIPULATION
OF FINAL SETTLEMENT
Respondents
THIS AGREEMENT 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, INC. (collectively "Objecting Respondents" or "Johnson"),
located at 6300 Cedar Avenue South, Richfield, Min
1.01. HRA commenced this proc
6300 and 6320 Cedar Avenue, Richfield,
attached hereto and incorporated herein ("Su
1.02. Pursuant to the Stipulatio
matter, dated March 21, 2006 ("Ori
Johnson agreed upon the total
settlement of all of Johnson' ..
H RA (except relocation
Exhibit A
e paid to Johnson in final
aking of the Subject Property by
ely negotiated and paid) and that
of Final Settlement, Johnsons delivered a deed
RA, dated April 3, 2006, and pursuant to the Findings of
Order Transferring Title and Possession in this matter
ffice of the District Court Administrator and the Receipt of
trator filed April 26, 2006, HRA deposited the Deposit with the
District Court Administrator.
1.04. HRA has requested that Johnson agree to amend the Stipulation of Final
Settlement to give the HRA the option to require Johnson to deliver possession of the
Subject Property to HRA on or before 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.
1.05. As modified, this agreement shall of Final
Settlement by, between and among the partie
NOW, THEREFORE, in considerati
other good and valuable consideration, the
acknowledged, the parties hereto hereby
2.01. Incor oration of Recit
Stipulation.
2.02.
Agreement, Objecting R
re made a part of this
and all objections which they may
. Court both as to the subject matter and as to
purpose and necessity of the HRA's taking of the
lity of the process followed by the HRA in creation of the
Ian and the Redevelopment Project, the adoption of the
eminent domain resolution and all other proceedings relating to the acquisition by
the HRA of the Subject Property; and
. (d) The requirements of Minn. Stat. ~ 117.042 that the HRA as
condemning authority give Objecting 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).
2.03. Entry of Orders. Subject to pe under this Agreement,
Objecting Respondents, in accordance wit
agree to the issuance by the above Court
(a)
and Appointing Condemnation Co
above matter in the form atta
oving Petition") in the
(b) Findings of
Transfer of Title and
and Order Authorizing
rder") in this matter in the form
attached hereto a
The provisions of the Mediated
'es which is attached hereto as Exhibit Bare
HRA and Johnson agree that, provided Johnson
itle to the Subject Property, HRA shall pay Johnson total
of the Subject Property and to extinguish all claims of
spondents named herein of $675,000 ("Settlement Amount"),
including reimbursement of appraisal fees and interest (not including relocation benefits)
as follows:
(a) On or before March 31, 2006, the HRA will deposit $30,000 (the
"Deposit") with the District Court Administrator.
(b) On or before March 31, 2006, the HRA will pay Johnson $645,000
("Settlement Sum") which is agreed market value and just
compensation due and owing for la ixtures in the Subject
Property, pursuant to this proceedin
2.05A.lnducement Deposit.
Objecting Respondents are obliged to vaca
November 1, 2006 to on or before Septe
(the "Inducement Deposit") with the
1, 2006, which amount shall remai
of the Subject Property by 0
2.13 of this Agreement.
September 1,
by which
hall deposit $100,000
n or before September
security to assure vacation
rovided in Sections 2.09 through
Inducement Deposit on or before
In the event HRA fails to make the
ber 1, 2006, Objecting Respondents shall be
roperty on or before November 1, 2006 as provided in
Commissioners Award. Petitioner and Objecting
e issuance by the Court Appointed Commissioners herein of an
award of damages in the total amount of $675,000 which is payable entirely to
Objecting Respondents, as their interests may appear, and with $0 payable to all other
respondents (except for any amount which may be payable to Hennepin County for real
estate taxes payable in 2005 and previous years or to City of Richfield for special
assessments levied or pending as of February 21, 2006).
2.07. Entry Upon Property. Petitioner, its agents and assigns, shall have the
right upon reasonable notice at any time following e f this Agreement and prior
to delivery of possession of the Subject Prop. espondents to HRA to
enter upon the Subject Property for thep
and borings, making surveys,
employees and agents.
2.08. No SubleasinQ.
or rerent the Subject Property to a
will hold the HRA harmless, defe
tenant not named in Exhibit
or state law.
of this Agreement and
against the claims of any
tion benefits pursuant to federal
Objecting Respondents may continue to occupy
2006, if HRA makes the Inducement Deposit
make the Inducement Deposit) provided that
isting policies of comprehensive general public liability
acts of AIR CARE-GO, INC. and all of its subcontractors,
, representatives and guests on or about the Subject Property.
All such insurance policies shall name the HRA as additional insured;
(b) Maintain existing policies of automobile liability insurance (including
owned, non-owned and hired or otherwise employed vehicles);
(c) Pay the cost of all sewer, water, electric, natural gas, telephone,
garbage collection and disposal, cable television and other utility services which
are provided to the Subject Property during the period of AIR CARE-GO's
occupancy of the Subject Property (collectiv Service"). However, AIR
CARE-GO, INC. shall not have the state taxes or special
assessments during the Possessio
(d) Pay the cost of any r
in its sole
discretion
(notwithstanding the foregoing,
CARE-GO's failure to unde
become a hazard to public
not be precluded fro
or otherwise addr
Subject Property, to
ce, the HRA and City shall
tory right to abate the nuisance
y elects to do so, the HRA or City
undertaking such repairs as the City in its
ssary to protect the public health or safety or
equired Repairs");
II personal property, garbage and debris from the
to vacation of the Subject Property by AIR CARE-GO,
INC.;
(f) Pay HRA a monthly rent ("Rent") of $200 payable on or before the
first day of each month following payment by HRA to Objecting Respondent of
the Settlement Amount and on the first day of each month thereafter until the
earlier of the following: (i) AIR CARE-GO, INC. delivers possession of the
Subject Property to HRA, or (ii) September 30, 2006 (or November 1, 2006 if the
HRA does not make the Inducement Deposit).
the event of Objecting
Respondents' failure to timely vacate the S
notice by HRA to Objecting Respondents i
be entitled to seek an order of the Distr
compelling delivery of possession of the Su
provisions of this Agreement, which or
costs and disbursements in favor of
2.11.
9117.043
rd of attorneys fees,
. ce in accordance with this
Agreement,
Possession
Subject Property for the full
nt until September 30, 2006 (or
s not make the Inducement Deposit). If AIR CARE-
operty on or before September 30, 2006 (or
make the Inducement Deposit) and to deliver
IR CARE-GO, INC. shall be in default under this
A liquidated damages in the amount of $1 ,000 for each
pse prior to AIR CARE-GO, Inc.'s vacation of the Subject
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, Liquidated Damages or
other amounts due from AIR CARE-GO, INC. to HRA pursuant to this Agreement which
are attributable to AIR CARE-GO, INC.'s occupancy of the Subject Property after the
Deposit, upon the affidavit of counsel for the HRA, the District Court Administrator shall
disburse such amounts and the costs, disbursem
reasonable attorney fees
incurred by the HRA in recovering such amou
and the Inducement Deposit.
2.13. Indemnitv. AIR CARE-GO, I
mnify and
hold the HRA harmless against any and all
Property arising from the acts of Object'
thereof), so long as
AIR CARE-GO, INC. is permitted to
in accordance with the
provisions of this Agreement.
2.14. Continqencv.
ent upon (a) execution of this
Agreement by all parties'
the Order Approving Petition; and
. e date of this Agreement shall be the date of
es, demands and requests required or permitted to be
hall be in writing, and shall be personally delivered,
ge paid, registered or certified, return receipt requested, or
rnight delivery by a reputable overnight courier service, in any
case addressed as follows:
If to JOHNSON:
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 Plaza
200 South Sixth Street
Minneapolis, MN 55402-4511
If to HRA:
Richfield HRA
Attention: Bruce
6700 Portia v
Richfield, 4
With a copy to:
If to AIR CARE-GO, INC.: AIR
At
6
With a copy to:
artin LLP
za
treet
55402-4511
otice hereunder by notice given in accordance
ays prior to the effective date of the address
d given upon the earlier of personal delivery, two days
days after depositing with such courier for delivery or
2.17.
s. 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.
2.18. Nondisparaqement. 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 0
actions of other parties hereto in relation t th uisition of the Subject
Property.
2.19. Waiver of Claims. A of the
Settlement Amount, Johnson waives any a
connection with HRA's acquisition of the
damages, interest, attorneys fees,
Johnson may otherwise be entitle ut not including relocation
benefits.
2.20.
Johnson hereby waive all further
in this matter except as either may elect in order to
that if Petitioner is not otherwise satisfied that
Ie title to the Subject Property as respects the possible
xhibit A, the Deposit shall remain on deposit with the
ntil the claims, if any of such respondents in the Subject
If Petitioner is not satisfied with the evidence of title provided
by Objecting Respondents, Petitioner shall move the Court for an order with respect to
other respondents named in Exhibit A pursuant to Minn. Stat. S 117.042 to acquire
those interests and Objecting Respondents will appear and support an order
determining that said other respondents have no interest in the Subject Property.
OWNER
nd Redevelopment
or the City of Richfield
By:
Marvin F. Johnson
tive
And
by:
Deborah H. Johnson
AIR CARE-GO, INC
By:
Marvin F. Johnson, its Pres.
J. Lindall, #63277
.S. Bank Plaza
South Sixth Street
inneapolis, MN 55402
612) 337-9219
TTORNEYS FOR THE HRA OF
RICHFIELD
MALKERSON, GILLILAN
LLP
By:
EXHIBIT A
Parcel NO.1 (Abstract Property) (PID No. 26-028-24-11-0061)
Property Address: 6300 Cedar Avenue, Richfield, MN 55423
Leqal Description of Subiect Property:
All that part of Lot 4, Block 3, lying No
and 33 feet South of the North line 0
the South 17 feet of Lot 6, Bloc
according to the recorded plat the
Minnesota.
Together with abutting streets and
accruing thereto upon vacation.
Subject to drainage, utility and stre
recorded plat.
Subject to easements of record in
Description of Takinqs: Th
Interests Being Acquired
Hy's Loan
Minnesota corp
Mutual Service Casualty Insurance
Company, by merger now known as
Country Mutual Insurance Company, an
Illinois cor oration
d dedicated on the
Nature of Interest
Fee owner
Possible holder of an interest pursuant to
judgment against Deborah Johnson
ac uired in Case No. DCT J 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
ac uired in Case No. DCTJ 97-10977.
Possible holder of an interest pursuant to
judgment against Debra Johnson acquired
in Case No. DCT J 0018075. .
A-I
Name
Centerpoint Energy Resource Corp., a
Delaware corporation, dba Minnegasco
Northern States Power Company, a
Minnesota corporation, dba NSP
U.S. West now known as Qwest
Corporation, a Colorado Corporation
n interest pursuant to
0.4-98-2561, of Debra
Marvin F. Johnson, dba
Market Research Associates
AIR CARE-GO, INC.,
a Minnesota corporation
City of Richfield
A-2
Parcel NO.2 (Abstract Property) (PID No. 26-028-24-11-0060)
Property Address: 6320 Cedar Avenue, Richfield, MN 55423
Leqal Description of Subiect Property:
The South 67 feet of Lot 4, Block 3, "Iverso
to the recorded plat thereof, and situate in He
ddition", according
ty, Minnesota.
Together with abutting streets and
accruing thereto upon vacation.
Subject to drainage,
recorded plat.
Subject to easements of record in favor 0
Description of Takings: The above
Interests Being Acquired
Mutual
Company, b
Country Mutual
Illinois corporation
urance
known as
ce Company, an
Possible holder of an interest pursuant to
judgment against Deborah Johnson
ac uired in Case No. DCT J 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
ac uired in Case No. DCT J 97-10977.
Possible holder of an interest pursuant to
judgment against Debra Johnson acquired
in Case No. DCT J 0018075.
Centerpoint Energy Resource Corp., a
Delaware corporation, dba Minnegasco
Possible holder of an interest pursuant to
Bankruptcy Case No. 4-98-2561, of Debra
Johnson.
A-3
Name
Northern States Power Company, a
Minnesota Corporation, dba NSP
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
Johns
Tenan
U.S. West now known as Qwest
Corporation, a Colorado Corporation
Marvin F. Johnson, dba
Market Research Associates
AIR CARE-GO, INC.,
a Minnesota corporation
City of Richfield
Count of Henne in
All other parties unknown, together with
unknown heirs or devisees and spou
if an
t in the Subject
A-4
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,
-CV-05-18463 ("Action").
In the Action, the HRA is seeking to acquire
identified in the Petition as Parcels 1, 2 an
the Petition and the HRA's right to conde
The HRA and the Johnsons ("Parties") desir
terms of this Agreement.
ce with the
Now, therefore, for good valuable and su
follows:
1.
The H RA will pay to the
as the fair market value
building and fixtures that
to the Property su to
of $675,000 ("Settlement Sum")
and owing for the land,
pon providing marketable title
as of the date hereof.
2.
The HRA will R
set forth in p
er than April 1, 2006 (less the sum
3.
e HRA shall deposit $30,000 with the Court (the
e vacation of the Property by the Johnsons in
ow.
nt of the Settlement Sum is made the following shall occur:
pulate that the Court may enter an order authorizing title
transfer to the HRA upon the payment of the Settlement
osit. Thereafter title shall transfer as provided for in
the Minnesota Statutes. The HRA and the Johnsons will
tually acceptable Court Order granting the HRA's Petition.
b. The sons 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 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 elect to vacate earlier than
November 1,2006 (or November 15, 2006) as set forth above in paragraph 4,
Rent shall abate.
6. For as long as they are occupants of the
any existing insurance in place and shall
Property.
7. The Johnsons shall have no res
against the Property from and a
8. Provided that the Johnsons vacate
Extended Vacation Date), and pay
vacation, the HRA shall stipulate th
paid to the Johnsons.
9. In recognition that the buil
Johnsons shall not be ob
Property from and after
protect health and safet
10. he HRA as set forth above, the
ensation due and owing as a result
ation of the y. Nothing contained herein, however,
elease or waiver of any claim that the Johnsons may
s under Minnesota Statutes Chapter 117 and the
and Real Property Acquisition Policies Act of
2, sections 4601 to 4655, as amended by the
Iform Relocation Assistance Act of 1987.
and all claims it may have against the Johnsons arising
Property.
bject to approval of by the Board of Commissioners of the
ebruary 27,2006 or it shall be void. In the event the
approved on or before February 27, 2006 the parties shall
he Court to continue the March 13, 2006 trial date to a mutually
te.
13. Each of the parties shall pay their own attorneys fees and costs.
A-6
Deborah H. Johnson
The Housing and Redevelopment
Authority in and for the City of Richfield
~ ,~
Executive Director and
Marvin F. Johnson
AIR CARE-GO, INC.
b Marvin F Johnson, President
Malkerson Gilliland Martin L
b Howard A. Roston 260
A-7
AGENDA ITEM # 5 ?
REpORT # ?
.......
STAFF REpORT
RICHFIELD
SPECIAL HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JULY 25, 2006
REpORT PREPARED By:
KA TIA MEDVETSKI,
REDEVELOPMENT SPECIALIST
NAME, TITLE
REpORT PRESENTER:
PATRICK SMITH, COMMUNITY
DEVELOPMENT1iANAGER
NAME, TITLE
REVIEWED By EXECUTIVE DIRECTOR:
DEPARTMENT DIRECTOR REVIEw: Er
ITEM FOR HRA CONSIDERATION:
Public hearing regarding consideration of a Resolution authorizing the sale of real property to
Ryan Companies 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 HRA or to be owned by the
HRA and which will be conveyed to the Developer. This is a public hearing
on the conveyance to the Developer.
072506 SpecHRALandSaleRyan
. 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.
. The resale of said property to the Developer will be undertaken in
accordance with the Developer's Agreement.
1 III. BASIS OF RECOMMENDATION I
1 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.
1 B. CRITICAL ISSUES .1
. 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 July 13 a legal notice of the public hearing for the sale of certain
real property in the City to the Developer was published in the Sun
Current newspaper. This notice was for the public hearing by the
HRA on July 25,2006, a special HRA meeting.
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) 1
. Delay or do not approve the land sale to the Developer.
I V. ATTACHMENTS
. Resolution
. Map
I VI. PRINCIP AL PARTIES EXPECTED AT MEETING
. N/A
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 amended 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 25th day of July, 2006.
Suzanne M. Sandahl, Chair
ATTEST:
Donna Drummond, Secretary
072506 SpecHRALandSaleRyan
EXHIBIT A
Legal Descriptions of Properties
6300 Cedar Avenue S All that part of Lot 4, Block 3, lying Northerly of a line drawn parallel
with and 33 feet South of the North line of said Lot 4; All of Lot 5, Block
3, and the South 17 feet of Lot 6, Block 3, all in "Iverson's Third
Addition", according to the recorded plat thereof, and situate in
Hennepin County, Minnesota.
Together with abutting streets and alleys, vacated and to be vacated,
accruing thereto upon vacation.
Subject to drainage, utility and street easements as shown and
dedicated on the recorded plat.
Subject to easement of record in favor of City of Richfield, if any.
6320 Cedar Avenue S The South 67 feet of Lot 4, Block 3, "Iverson's Third Addition",
according to the recorded plat thereof, and situate in Hennepin County,
Minnesota
Together with abutting streets and alleys, vacated and to be vacated,
accruing thereto upon vacation.
Subject to drainage, utility and street easements as shown and
dedicated on the recorded plat.
Subject to easement of record in favor of City of Richfield, if any.
6500 Cedar Avenue S All of Lot 6, and the North 25 feet of Lot 5, Block 1, "Iverson's Third
Addition", according to the recorded plat thereof, and situate in
Hennepin County, Minnesota
Together with abutting streets and alleys, vacated and to be vacated,
accruing thereto upon vacation.
Subject to drainage, utility and street easements as shown and
dedicated on the recorded plat.
Subject to easement of record in favor of City of Richfield, if any.
6528 Cedar Avenue S The North 46 feet of Lot 2 and all of Lot 3, all in Block 1, "Iverson's
Third Addition", according to the recorded plat thereof, and situate in
Hennepin County, Minnesota
Together with all hereditaments and appurtenances belonging thereto,
subject to the following exceptions: easements of record.
Between 6344 Cedar All of Lot 2, Block 3, Iverson's Third Addition, except the South 60 feet
Avenue South and 6328 and except the North 40 feet thereof.
Cedar Avenue South
072506 SpecHRALandSaleRyan
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RICHFIELD HOUSING
& REDEVELOPMENT
AUTHORITY
CEDAR POINT
LAND
CONVEYANCE
PROPERTIES
Legend
D
Cedar Point
Project Boundary
Land Sale to
Ryan Companies
US, Inc.
~
N
July 25, 2006
AGENDA ITEM # 53
REpORT # z'l
,
........
STAFF REpORT
RICHFIELD
SPECIAL HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JULY 25, 2006
REpORT PREPARED By:
KELLY BERG, HOUSING COORDINATOR
NAME, TITLE
REpORT PRESENTER:
BRUCE NORDQUIST, HOUSING AND
REDEVELOPMENT~NAGER
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Reconsideration of approval regarding Assignment of Mortgage for 7445 10th Avenue to C &
M Real Estate Services, Inc.
1. RECOMMENDED ACTION:
By Motion: Approve attached Assignment of Mortgage for 744510th
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
0725067445 10th Ave
the HRA offering to buy the mortgage for $9,000. Following discussion at the July
17, 2006 HRA meeting staff contacted C & M Real Estate Services, Inc. They are
agreeable to buying the HRA mortgage lien for $14,945.
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. CRlTICAL 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 $14,945 or 100% of the CDBG funds
committed.
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
. Letter from C & M Real Estate Services, Inc.
I VI. PRlNCIPAL PARTIES EXPECTED AT MEETING
. N/A
Assignment of Mortgage
,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 29, 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:
Date:
Lot 9, Block 1, Sunnyside Acres, Hennepin County, MN
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
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
06/16/2015 16:05 FAX 7632742836
..
C & M Real Estate Services, Inc.
June 14.2006
HRA ofRicfield
Kelly
RE: Assignmenl or ~.~
To Whom II May Concern:
C & M Real Estate Services, Inc., offers to purchase the Mortgage's recorded on April
29.2002 as doc. 7713333 as document no. 7713333 for the following property in
Hennepin County
7445 1 Olll Ave S Richfield MN
Mongagor: Marlene E Weurn FKA Marlene E. Fedora
The offer to Purchase the \1ortgage is $9,eee.. Please respond ASAP as time is of the
essence. ..{ ""'-I. I .)~l...t ~___.--~
....__-- "'PjJ 8/0?
Thank you for yom time.
Sincerely,
j~~~7~-
Mike Wayman
PO Box 756, Anoka. MN 55303
Direcl-763-274-2786
Fax-763w274-2836
cc. Corrine Thompson
All information in this contract are confidential. No intonnation in thi!i a~l'eement are [0 be released to an,y
third palty.
.
III 0021002