011712completeagenda CITY OF RICHFIELD, MINNESOTA
TUESDAY, JANUARY 17, 2012
RICHFIELD MUNICIPAL CENTER
6700 PORTLAND AVENUE
SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY WORKSESSION
BARTHOLOMEW CONFERENCE ROOM
6:00 P.M.
AGENDA
Call to order
Roll call
1. Discussion regarding rental housing study
Notes:
Adjournment
*******************************************************************************************************
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
Call to order
Roll call
1. Consideration of election of HRA officers for 2012
Staff Report No. 1
Notes:
2. Approval of minutes of (1) Special HRA Meeting of December 13, 2011; (2) Special
HRA Worksession of December 19, 2011; and (3) Regular HRA Meeting of
December 19, 2011
3. HRA approval of agenda
4. HRA Programs/Community Development 2011 Year in Review
5. Consent Calendar contains several separate items which are acted upon by the HRA in
one motion. Once the Consent Calendar has been approved, the individual items and
recommended actions have also been approved. No further HRA action is necessary.
However, any HRA Commissioner may request that an item be removed from the
Consent Calendar and placed on the regular agenda for HRA discussion and action. All
items listed on the Consent Calendar are recommended for approval.
A. Consideration of approval of designating Community Development Director as
Acting Executive Director of HRA for 2012 in event Executive Director is absent from
City S.R. No. 2
B. Consideration of approval of resolutions designating official depositories for HRA,
including collateral, for 2012 S.R. No. 3
C. Consideration of approval of resolution designating Richfield Sun-Current as official
newspaper for 2012 S.R. No. 4
D. Consideration of approval of resolution authorizing purchase of real property at
6812-14th Avenue through Richfield Rediscovered Program contingent upon
subdivision waiver by City Council S.R. No. 5
E. Consideration of approval of resolution authorizing transfer of up to $55,000 from
Development Fund to City to assist in acquisition and removal of 6315-16th Avenue
and removal of 6420-17th Avenue S.R. No. 6
F. Consideration of approval of resolution authorizing Executive Director and HRA
Chair to execute instruments necessary to purchase six to eight vacant and
foreclosed houses using up to $513,200 from Housing and Redevelopment Fund
through December 31, 2012 S.R. No. 7
Notes:
6. HRA discussion items
Notes:
7. Executive Director report
Notes:
8. 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#: 1
REPORT#: 1
MAIII STAFF REPORT
RICHFIELD HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 17, 2012
REPORT PREPARED BY: CHERYL KRUMHOLZ, EXEC. COOR.
NAME,TITLE
REPORT PRESENTER: STEV . r)EVICH,EXECUTIVE DIRECTOR
A
REVIEWED BY EXECUTIVE DIRECTOR: a/FA A r i O6
ITEM FOR HRA CONSIDERATION:
Consideration of the election of officers for the Housing and Redevelopment Authority (HRA)
for 2012.
I. RECOMMENDED ACTION:
By Motion: Elect officers for the Richfield Housing and
Redevelopment Authority for 2012.
II. BACKGROUND
The bylaws of the Richfield Housing and Redevelopment provide that the HRA hold
an annual meeting in January. The bylaws further provide that the Chair, Vice Chair
and Secretary of the HRA be elected at this meeting.
Officers for 2011 were:
Sue Sandahl, Chair
Steven J. Quam, Vice Chair
Joan Helmberger, Secretary (retired November 2011)
Doris Rubenstein, Acting Secretary (December)
0117officers
III. BASIS OF RECOMMENDATION
A. POLICY
• The bylaws of the Richfield HRA provide that the HRA hold an annual
meeting in January.
• The bylaws further provide that the Chair, Vice Chair and Secretary of
the HRA be elected at this meeting.
B. CRITICAL ISSUES
• The bylaws of the Richfield HRA require that an election of officers for
the HRA be held at the annual meeting in January.
IV. ALTERNATIVE RECOMMENDATION(S)
• Do not hold the election. However, this would be in contradiction of the HRA
bylaws.
V. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
HOUSING AND REDEVELOPMENT
RICHFIELD AUTHORITY MEETING MINUTES
Richfield, Minnesota
Special Meeting
December 13, 2011
Members Present: Sue Sandahl, Chair; Debbie Goettel; Steve Quam; Doris Rubenstein.
The HRA Members attended Capstone presentations by University of Minnesota students
in the Council Chambers. These presentations were on a variety of topics based on the student's
research in Richfield during 2011.
Date Approved: January 17, 2011
Suzanne M. Sandahl
Chair
Nancy Gibbs Steven L Devich
City Clerk Executive Director
HOUSING AND REDEVELOPMENT
RICHFIELD AUTHORITY MEETING MINUTES
Richfield, Minnesota
Special Housing and Redevelopment
Authority Worksession
December 19, 2011
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 6:30 p.m.
ROLL CALL
HRA Members Sue Sandahl, Chair; Steve Quam; Debbie Goettel; and Doris Rubenstein
Present:
Staff Present: John Stark, Acting Executive Director; Karen Barton, Assistant Community
Development Director; and Nancy Gibbs, City Clerk.
Item # I DISCUSSION REGARDING RICHFIELD REDISCOVERED PROPOSAL FOR
SPECULATIVE DEVELOPMENT
Assistant Community Development Director Barton introduced Steve Parsley and Scott
Honour of Parsley Builders.
After much discussion Commission Member Quam asked if Mr. Parsley would come back with
information on a more move up style home, with more square footage and at least 3 bedrooms.
Chair Sandahl stated, the plans presented have nice street appeal, however, she too would
like to see more move up housing.
The Commissioners agreed to have Parsley Builders return to another worksession to discuss
some of the ideas brought up tonight.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 6:59 p.m.
Special Worksession Minutes -2- December 19, 2011
Date Approved: January 17, 2011
Suzanne M. Sandahl
Chair
Nancy Gibbs John Stark
City Clerk Acting Executive Director
HOUSING AND REDEVELOPMENT
RICHFIELD AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
December 19, 2011
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:02 p.m.
ROLL CALL
HRA Members Sue Sandahl, Chair; Steven Quam; Debbie Goettel and Doris Rubenstein
Present
Staff Present: John Stark, Acting Executive Director; Karen Barton, Assistant Community
Development Director; and Nancy Gibbs, City Clerk.
Item #1 APPOINTMENT OF HRA ACTING SECRETARY FOR DECEMBER 2011
Commission Member Goettel nominated Doris Rubenstein.
M/Goettel, S/Quam to appoint Doris Rubenstein as HRA Acting Secretary for December
2011.
Motion carried 4-0.
Item #2 APPROVAL OF MINUTES OF (1) SPECIAL HRA WORKSESSION OF NOVEMBER
21, 2011 AND (2) REGULAR HRA MEETING OF NOVEMBER 21, 2011
M/Rubenstein, S/Goettel to approve the minutes of the (1) Special HRA Worksession of
November 21, 2011 and (2) Regular HRA Meeting of November 21, 2011.
Motion carried 4-0.
Item #3 HRA APPROVAL OF AGENDA
HRA Meeting -2- December 19,2011
M/Goettel, S/Quam to approve the agenda.
Motion carried 4-0.
Item #4 CONSIDERATION OF ANNUAL CONSULTANT SERVICES AGREEMENT WITH
GREATER METROPOLITAN HOUSING CORPORATION FOR 2012 (STAFF
REPORT NO. 54)
Assistant Community Development Director Barton presented Staff Report No. 54.
M/Rubenstein, S/Quam to approve the annual consultant services agreement with Greater
Metropolitan Housing Corporation for 2012.
Motion carried 4-0.
Item #5 CONSIDERATION OF RESOLUTION GRANTING ASSISTANCE IN AMOUNT OF
$250,000 AND APPROVING FUNDING AGREEMENT WITH PIZZA LUCE FOR
ACQUISITION AND REDEVELOPMENT OF 800 WEST 66TH STREET (STAFF
REPORT NO. 55)
Assistant Community Development Director Barton presented Staff Report No. 55.
J.J. Heywood, CEO, and Laura Hansen, Chief of Operations of Pizza Luce, presented a
PowerPoint of the new Pizza Luce Restaurant that will begin construction early 2012.
M/Quam, S/Sandahl that the following resolution be adopted and that it be made part of
these minutes:
HRA RESOLUTION NO. 1110
RESOLUTION APPROVING THE EXECUTION AND DELIVERY OF
A FUNDING AGREEMENT BETWEEN THE RICHFIELD HRA AND
[PIZZA LUCE ENTITY]
Motion carried 4-0. This resolution appears as HRA Resolution No. 1110.
Item #6 CONSIDERATION OF CONTRACT WITH STANTEC CONSULTING SERVICES TO
CONDUCT RENTAL HOUSING INVENTORY AND NEEDS ASSESSMENT (STAFF
REPORT NO. 56)
Community Development Director Stark presented Staff Report No. 56 and introduced Jay
Demma of Stantec Consulting.
Mr. Deema explained that he understood the concerns the commissioners had and he
would address these concerns in his report.
HRA Meeting -3- December 19,2011
M/Goettel, S/Quam to approve a contract with Stantec Consulting Services to conduct
rental housing inventory and needs assessment.
Motion carried 4-0.
Item #7 HRA DISCUSSION ITEMS
None.
Item #8 EXECUTIVE DIRECTOR REPORT
None.
Item #9 CLAIMS AND PAYROLL
M/Rubenstein, S/Quam that the following claims and payrolls be approved:
U.S BANK 12/19/2011
Section 8 Checks: 121293-121406 $ 148,233.09
HRA Checks: 31356-31373 $ 157,572.62
TOTAL $ 305,805.71
Motion carried 4-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:58 p.m.
Date Approved: January 17, 2012
Suzanne M. Sandahl
Chair
Nancy Gibbs John Stark
City Clerk Acting Executive Director
AGENDA ITEM#: 5A
REPORT#: 2
STAFF REPORT
RICHFIELD HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 17, 2012
REPORT PREPARED BY: CHERYL KRUMHOLZ, EXEC. COOR.
NAME,TITLE
REPORT PRESENTER: STE tof -. I EVICH,EXECUT 4. DIRECTOR
NAM✓
REVIEWED BY EXECUTIVE DIRECTOR: El
ITEM FOR HRA CONSIDERATION:
Consideration of designating the Community Development Director as the Acting Executive
Director of the Housing and Redevelopment Authority (HRA) for 2012 in the event the
Executive Director is absent from the City.
I. RECOMMENDED ACTION:
By Motion: Designate the Community Development Director as
Acting Executive Director of the HRA in the event the Executive
Director is absent from the City.
II. BACKGROUND
Since the City Manager also serves as the HRA Executive Director, it is
recommended that the Community Development Director be designated by the
HRA as the Acting Executive Director to serve in that capacity during the absence
of the Executive Director.
The Community Development Director was designated Acting Executive Director for
2011.
III. BASIS OF RECOMMENDATION
A. POLICY
011 7acting
• Designation of an Acting Executive Director is a normal business
action of the HRA similar to the designation of depositories and the
official newspaper.
• The Community Development Director has been designated as the
Acting Executive Director in the past.
B. CRITICAL ISSUES
• It is necessary to designate a person to serve as the Acting Executive
Director to ensure continuation of HRA operations during an absence
of the Executive Director.
IV. ALTERNATIVE RECOMMENDATION(S)
• Defer this designation to another HRA meeting.
V. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
AGENDA ITEM#: 5B
REPORT#: 3
..All STAFF REPORT
RICHFIELD HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 17, 2012
REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER
NAME,TITLE
REPORT PRESENTER: CHRIS REGIS, FINANCE MANAGER
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: Mi Alp Ziere."--
REVIEWED BY EXECUTIVE DIRECTOR: IP '
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ITEM FOR HRA CONSIDERATION:
Consideration of resolutions designating official depositories for the Housing and
Redevelopment Authority for 2012, including the approval of collateral.
I. RECOMMENDED ACTION:
By Motion: Adopt the attached resolutions designating official
depositories, with the understanding that the HRA could not invest in
any of the depositories beyond the level of insurance coverage of the
pledged collateral.
II. BACKGROUND
N/A
III. BASIS OF RECOMMENDATION
N/A
A. POLICY
• In accordance with Minnesota Statutes Section 118A.01 - 118A.06, the
HRA of Richfield must designate financial institutions annually. The
institutions must pledge the collateral over and above the amount of
federal insurance, as public depositories.
• U.S. Bank acts as the banking institution in the HRA's banking
arrangement with the 4M Fund. Monies received, checks written, by the
HRA, flow through U.S. Bank, however, at the end of each business day,
any proceeds remaining in HRA U.S. Bank accounts are swept to the 4M
Fund to be invested. Therefore, at the end of the business day the HRA
accounts are zero, which means the collateral requirements of Minnesota
Statutes Section 118A.03 are not required. Accordingly, U.S. Bank has
met all other statutory requirements and should be considered as a
depository for the HRA's vendor accounts and all savings deposits.
• The HRA must also designate annually, certain savings and loan
associations, banks, and credit unions as official depositories for deposit
and investment of certain HRA funds. With approval of these official
depositories, the HRA will be able to invest funds in these institutions, not
exceeding the federal insurance of$250,000.
• Finally, a designation must be made for certain financial institutions as
depositories for the investment of HRA funds for 2012. These institutions,
such as investment brokerage firms, offer government securities in the
manner required by law. These financial institutions include U.S. Bank,
RBC Dain Rauscher, Wells Fargo Institutional Brokerage & Sales,
Morgan Keegan, Northland Securities and the 4M Fund.
B. CRITICAL ISSUES
• N/A
C. FINANCIAL
• N/A
D. LEGAL
• The HRA is required by Minnesota Statute 118A.01 - 118A.06, to
designate as a depository of funds, insured banks or thrift institutions.
Any collateral so deposited is accompanied by an assignment pledged
to the HRA in the amount specified in the attached resolutions.
IV. ALTERNATIVE RECOMMENDATION(S)
• The HRA could solicit other financial institutions for official depositories, but
past relationships with the depositories recommended have proven
satisfactory for the City.
V. ATTACHMENTS
• Resolution designating US Bank a depository of funds of the HRA of Richfield
for the year 2012.
• Resolution designating certain savings and loan associations, banks, and
credit unions as depositories for the investment of HRA funds in 2012.
• Resolution designating certain financial institutions as depositories for the
investment of HRA of Richfield funds in 2012.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
RESOLUTION NO.
RESOLUTION DESIGNATING U.S. BANK
A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD
FOR THE YEAR 2012
BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as
follows:
That, in accordance with Minnesota Statutes, Section 118A.01- 118A.06, U.S. Bank
be, and hereby is designated a depository of the funds of the Housing and Redevelopment
Authority of Richfield, subject to modification and revocation at any time by said Housing
and Redevelopment Authority, and subject to the following terms and conditions:
The said depository shall not be required to give bonds or other securities for such
deposits provided that the total sum thereof shall not at any time exceed in any depository
the sums for which its deposits are insured under the Acts of Congress of the United
States relating to insurance of bank deposits; but that in case such deposits in any such
depository shall at any time exceed such insured sum, said depository shall immediately
furnish bonds or other security for such excess according to law, approved by the Housing
and Redevelopment Authority of Richfield.
That said depository shall pay on demand all deposits therein; and shall pay all time
deposits, at or after the end of the period for which the same shall be deposited, on
demand.
BE IT FURTHER RESOLVED, that there shall be maintained a general account in
which shall be deposited all monies. The following officers or their facsimile signatures
shall sign checks on this account;
HRA CHAIR
STEVEN L. DEVICH, EXECUTIVE DIRECTOR
BE IT FURTHER RESOLVED, that all funds remaining in the account at the end of
each business day will be transferred from U.S. Bank to the 4M Fund where funds
deposited are invested and insured.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this
17th day of January, 2012.
Chair
ATTEST:
Secretary
RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS, BANKS
AND CREDIT UNIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING
AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2012
BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield,
Minnesota:
WHEREAS, pursuant to Minnesota Statutes, Sections 118A.01 — 118A.06,
municipal funds may be deposited in any Savings and Loan Association, Bank or Credit
Union which has its deposits insured by the Federal Deposit Insurance Corporation
(FDIC), or National Credit Union Administration (NCUA); and
WHEREAS, the amount of said deposits may not exceed the FDIC/NCUA
insurance covering such deposits which insurance amount is presently $250,000; and
WHEREAS, the deposit of Housing and Redevelopment Authority funds in Savings
and Loan Associations and Banks would provide greater flexibility in the Housing and
Redevelopment Authority's investment program and maximize interest income thereon.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority of Richfield, Minnesota, as follows:
1. It is hereby found and determined that it is in the best interest of the proper
management of Housing and Redevelopment Authority funds that certain
Savings and Loan Association and Banks be designated as additional
depositories for Housing and Redevelopment Authority funds for 2012.
2. It is further found and determined that the purpose of such depository
designation is to facilitate the proper and advantageous investments of Housing
and Redevelopment Authority funds and that such designation is not exclusive
nor does it preclude the deposit of any Housing and Redevelopment Authority
funds in other officially designated depositories of the Housing and
Redevelopment Authority.
3. The Treasurer and Finance Manager are hereby authorized to deposit Housing
and Redevelopment Authority funds in various depositories up to the amount of
$250,000, or such other amount as may be subsequently permitted by law, such
deposits to be in the form of demand accounts, payable to the Housing and
Redevelopment Authority of Richfield on the signatures of the Housing and
Redevelopment Authority Treasurer or Finance Manager. Such deposits may
be made and withdrawn from time to time by the Treasurer or Finance Manager
as his best judgment and the interests of the Housing and Redevelopment
Authority dictates.
4. The investment of funds and the reporting thereof pursuant to this resolution
shall be conducted in accordance with established policies of the Housing and
Redevelopment Authority regarding the investment of Housing and
Redevelopment Authority funds.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 17th day
of January, 2012.
Chair
ATTEST:
Secretary
RESOLUTION NO. 5o -�
RESOLUTION DESIGNATING CERTAIN FINANCIAL
INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2012
WHEREAS, the Housing and Redevelopment Authority of Richfield has money which
is available for investment; and
WHEREAS, different financial institutions offer different rates of return on investments;
and
WHEREAS, the Housing and Redevelopment Authority of Richfield shall purchase
U. S. Treasury Bills, U. S. Treasury Notes and other such government securities in the
manner required by law from the institution offering the highest rate to the Housing and
Redevelopment Authority of Richfield providing greater flexibility in the investment program
and maximize interest income thereon.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority of Richfield, Minnesota, in accordance with Minnesota Statutes, Sections
118A.01 — 118A.06, as follows:
1. It is hereby found and determined that it is in the best interest of the proper
management of Housing and Redevelopment Authority of Richfield funds that
certain financial institutions be designated as additional depositories for Housing
and Redevelopment Authority of Richfield funds for 2012.
2. The following financial institutions designated as depositories for the Housing and
Redevelopment Authority of Richfield funds:
RBC Dain Rauscher, Inc. Morgan Keegan & Company.
Wells Fargo Institutional Brokerage & Sales
4M Fund
Northland Securities, Inc.
3. The Treasurer and Finance Manager are hereby authorized to deposit the
Housing and Redevelopment Authority of Richfield funds in any or all of the
depositories herein designated. Such deposits may be made and withdrawn
from time to time by the Treasurer or Finance Manager's judgment and as the
interest of the Housing and Redevelopment Authority of Richfield dictates.
4. The investment of funds and the reporting thereof pursuant to this resolution
shall be conducted in accordance with established policies regarding the
investment of these funds.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 17th
day of January, 2012.
Chair
ATTEST:
Secretary
AGENDA ITEM#: 5C
REPORT#: 4
STAFF REPORT
RICHFIELD HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 17, 2012
REPORT PREPARED BY: NANCY GIBBS, CITY CLERK
NAME,TITLE
REPORT PRESENTER: STEVEN L. DEVICH, EXECUTIVE DIRECTOR
NAME,TITL
DEPARTMENT DIRECTOR REVIEW:
A#
ii(eirifflit&V
REVIEWED BY EXECUTIVE DIRECTOR: IA Airsipy
ITEM FOR HRA CONSIDERATION:
Consideration of resolution designating an official newspaper for 2012.
I. RECOMMENDED ACTION:
By Motion: Approve the resolution designating the Richfield Sun-
Current as the official newspaper for the City of Richfield for 2012.
II. BACKGROUND
The Richfield Sun-Current, published by Minnesota Sun Publications, has been the
City's official newspaper for many years.
Attached is a copy of a letter from Minnesota Sun Publications requesting that they
be designated as the official newspaper for the City of Richfield for 2012. The 2012
advertising rate structure for legal notices is as follows:
Sun Current
1 Column width (1.6 inches wide)
$11.99 per inch for first insertion
$ 5.99 per column inch for subsequent insertions
0117newspaper
There are 11 lines per inch. The 2012 rate has increased from the 2011 rate of
$11.44 per inch for first insertion and $5.72 per column inch for subsequent
insertions.
For 2012, the Minneapolis Star Tribune Newspaper could be considered as the
official newspaper. The rate is $5.50 per line with 11 lines per inch, approximately
38 characters including spaces and punctuation. Their 2011 rate has increased
from the 2010 rate of$5.40 per line.
Star Tribune
1 Column width (1.77 inches wide)
$ 5.50 per line
Based on the 2012 rates for 11 lines per inch, the total would be approximately
$60.50 per inch in the Star Tribune compared to $11.99 for the first inch ($5.99 per
subsequent inch) in the Sun-Current.
III. BASIS OF RECOMMENDATION
A. POLICY
• The Charter of the City of Richfield requires in Section 13.01 thereof
that the City Council annually designate an official newspaper for the
City.
• The Sun-Current has expressed an interest in continuing to serve as
the official newspaper of the City.
• The Sun-Current has served well as the official paper for many years.
• The Sun-Current is delivered to nearly all residences in the City.
B. CRITICAL ISSUES
• The designation must be made at the first meeting of the new year.
C. FINANCIAL
• The cost of the official publication is reasonable.
D. LEGAL
• A newspaper must be designated each year by the City for publication
of all official and legal City business.
IV. ALTERNATIVE RECOMMENDATION(S)
• Not make a designation and request the City Clerk's office to check into
using another publication.
V. ATTACHMENTS
• Resolution
• Letter from Minnesota Sun Publications
• Email from Star Tribune
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
HRA RESOLUTION NO.
RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER FOR 2012
BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as
follows:
WHEREAS, the Charter of the City of Richfield requires in Section 13.01 thereof
that the City Council annually designate an official newspaper for the City.
NOW, THEREFORE, BE IT RESOLVED that the Richfield Sun-Current is
designated the official legal newspaper for the City of Richfield for 2012 for all publications
required to be published therein.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this
17th day of January, 2012.
Chair
ATTEST:
Secretary
el
newspapers
December 2011
City of Richfield
City Council
6700 Portland Avenue
Richfield, MN 55423-2599
Dear City Council Members:
The Richfield Sun-Current would like to be considered for designation as the legal newspaper for the
City of Richfield for the upcoming year.
All published legal notices are posted on our website (www.minnlocal.com) at no additional charge.
This is an enhancement to the local news coverage already available on the Internet and will
broaden the readership of your legal notices.
One of the main benefits of publishing your legal notices with the Sun-Current is our home delivery.
Sun Newspapers has become the primary source of community news in the suburbs.Your notices in
our paper have the best chance of being seen and read.
The rate structure for legals effective the first of the year will be:
1 column width: $11.99 per inch for first insertion
$5.99 per column inch for subsequent insertions
There are 11 lines per inch
Two notarized affidavits on each of your publications will be provided with no additional charge.
The Sun-Current is published every Thursday. The deadline for regular length notices is 2:00 p.m.
the Thursday prior to publication. E-mailing the legal notices is an efficient and accurate way of get-
ting the notices to us. The e-mail address for the legals department is sunlegals @acnpapers.com.
If you require more information to mske your decision, please contact me or Lisa Smith. our L.egals
Representative, at 952-392-6829.
Thank you for considering the Sun-Current as the official newspaper for the City of Richfield for the
upcoming year. We appreciate the opportunity to serve the needs of your community.
Sincerely,
Jeff Coolman
Vice President and Group Publisher
10917 VALLEY VIEW ROAD 0 EllI;N PRAIRII; 0 MINNESOTA 55344 0 952-829-0797 0 FAX: 952-941-3588
Page 1 of 1
5e-,3
Katie Porath
From: Place Ads [placeads @startribune.com]
Sent: Friday, December 02, 2011 11:03 AM
To: Katie Porath
Subject: RE: Legal Notice quote
Hi Katie,
Sorry for the delayed reply. At the moment legal notices in the Star Tribune cost$5.40/line per day. Each line
can contain an average of around 38 characters (including spaces& punctuation). That rate will be going up to
$5.50 as of January 1st, 2012. Please direct all legal notice inquiries to us at placeads@startribune.com or call
612-673-7000.
Thanks much
Star Tribune
Classified Call Center
612-673-7000
placeads @startribune.com
From: Katie Porath [mailto:KPorath @cityofrichfield.org]
Sent: Wednesday, November 30, 2011 9:38 AM
To: Customer Service
Subject: Legal Notice quote
The City of Richfield is looking for quotes on the cost of publishing legal notices,ordinances, etc. in the paper
for consideration at a Council meeting in the beginning of 2012. Please send a written quote for inclusion in
this Council item.Thank you.
Katie Porath
Deputy City Clerk/Documents Secretary
6700 Portland Ave
Richfield, MN 55423
612-861-9703
www.cityofrichfield.org
12/12/2011
AGENDA ITEM#: 5D
REPORT#: 5
=Ad" STAFF REPORT
RICHFIELD HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 17, 2012
REPORT PREPARED BY: MICHELLE LEWIS/JULIE URBAN,HOUSING
SPECIALISTS
NAME,TITLE
REPORT PRESENTER: KAREN BARTON, COMMUNITY
DEVELOPMEN ASSISTANT DIRECTOR
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: ';', '
a All -
- offREVIEWED BY EXECUTIVE DIRECTOR. h.. ' /
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution authorizing the purchase of real property located at 6812 14th
Avenue through the Richfield Rediscovered Program.
I. RECOMMENDED ACTION:
By Motion: Approve the attached resolution authorizing the purchase
of real property located at 6812 14th Avenue through the Richfield
Rediscovered Program contingent upon approval of a subdivision
waiver by the City Council.
II. BACKGROUND
The owner of 6812 14th Avenue has expressed an interest in selling the property to
the Housing and Redevelopment Authority (HRA). The owner has moved to an
assisted living facility leaving the house vacant.
The one story rambler, built in 1948 has two bedrooms, a total of 825 square feet,
and a one-car garage. The house is constructed on a 100-foot wide lot. An
independent substandardness evaluation was conducted and concluded that the
house meets criteria to certify it as substandard and that its small room sizes and
layout make expansion impractical. The property would be better served with the
01172012 6812 14th Avenue Acquisition
house removed and the lot split into two, fifty-foot wide lots and made available for
new construction.
The lot, at 100 feet wide and 133 feet deep, is a total of 13,300, square feet making
it a candidate for a lot-split. A survey is being conducted and an application will be
made to the City for a subdivision waiver to split the lot equally. The new lots would
be 6,650 square feet each.
HRA staff obtained an appraisal in the amount of $110,000 for the property. A
Purchase Agreement was submitted to the owner and accepted. The offer is
contingent upon HRA approval and City Council approval of a subdivision waiver.
The agreed-upon purchase price of $110,000 plus closing costs will be paid through
the HRA's Richfield Rediscovered Program. This expense is provided for in the
2012 HRA Budget.
III. BASIS OF RECOMMENDATION
A. POLICY
• The 2008-2018 Richfield Comprehensive Plan states as policy:
• Encourage the creation of "move-up" housing through new
construction and home remodeling.
• The small house needs maintenance and updating and has limited
market appeal.
• Through the City's Richfield Rediscovered Program, the HRA
purchases and removes substandard and functionally obsolete housing
and replaces it with newer, higher valued homes.
B. CRITICAL TIMING ISSUES
• The Purchase Agreement was submitted contingent upon HRA
approval on January 17, 2012.
• The Purchase Agreement is also contingent on approval of a
subdivision waiver by the City Council. Consideration of the
subdivision waiver is tentatively scheduled on the Council agenda for
February 14, 2012.
• The HRA would close on the property following approval of a
subdivision waiver.
C. FINANCIAL
• If the lot can be split into two 50-foot wide lots, the purchase price of
$110,000 is reasonable. Absent a lot split, the purchase price is too
high to make sense in the current market.
• The property has a $24,854 lien against it for an HRA Deferred Loan.
That lien would be repaid to the HRA upon closing and funds returned
to the Deferred Loan program.
• Funding for this acquisition through the Richfield Rediscovered
Program is in the HRA's 2012 Budget.
D. LEGAL
• Legal Counsel has prepared the Purchase Agreement.
IV. ALTERNATIVE RECOMMENDATION(S)
• Do not authorize the purchase of the property.
V. ATTACHMENTS
• Resolution
• Photo of existing structure
• Purchase Agreement
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
15bl
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY
LOCATED AT 6812 14TH AVENUE
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota ("the HRA") desires to purchase certain real property pursuant to and
in furtherance of the New Home Program, said property being described as:
6812 14th Avenue South
The East 1/2 of Block 6 except the North 126 feet thereof and except the South
320.3 feet thereof, Rich Fields, Hennepin County, Minnesota
WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to
acquire real property within its area of operation; and
WHEREAS, Richfield Rediscovered Program funds are available for acquisition
purposes.
NOW THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield:
1. The purchase price for the property identified is approved at $110,000,
plus closing costs, not to exceed $115,000.
2. The Chairperson and Executive Director are authorized to execute a
Purchase Agreement and to take other actions necessary to purchase
the property for the amount set forth in this resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota on this 17th day of January, 2012.
Chair
ATTEST:
Secretary
J/J
6812 14th Avenue South
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PURCHASE AGREEMENT
THIS AGREEMENT is made as of this day of , 2011, by and
between Genevieve A Johnson, single("Seller"), and the Housing and Redevelopment Authority in
and for the City of Richfield, a public body corporate and politic under the laws of the State of
Minnesota (' IRA" or"Buyer").
RECITALS
A. Seller is the owner of property located at 6812 14th Ave Wchff ld,Minnesota, which
is legally described on the attached Exhibit A("Prop
B. The Property includes includes all plants, shrubs aid trees, std windows and/or
inserts, storm doors, screens, awnings,winds Wades, blinds, .in-traverse-
drapery rods, attached lighting fixtures wit bulbs,plumbing fixtur water heater,
heating system,humidifier, central air itioning electronic air fi� 6matic
garage door opener with controls,wafer sO= .er, caltelevision outleand cabling,
and built-ins, including dishwasher, garbageW--_o ,trash compactor;oven(s), cook
top stove, microwave oven,hood-fan, intercom ��a installed carpeting located on the
premises which are the propei.fto_ Seller. The proli*Vt also includes the following
personal property: NONE. Se r.:- --„ponsible for rexalof all personal property.
Seller may remove the followingtended Sellers—es not cause any
unnecessary damage to the Prope :
-^ �1GREEMigN T
1.= O f ptan oor Sale of Property. The Seller agrees to sell to the HRA the
Propertnd the HRA alto puf- _ e the same,according to the terms of this Agreement.
2. Purchase Pr-bite-for Property and Terms.
URCHA PRICE: The total Purchase Price for the Property is one hundred
- ten
tiolsand dollars and 00/100ths Dollars ($110,000.00).
B. TENS:
(1): EARNEST MONEY. The sum of zero Dollars ($0.00) Earnest Money
shall be paid by the Buyer to the Seller.
(2): BALANCE DUE SELLER: Buyer agrees to pay by check or electronic
transfer of funds on the Closing Date any remaining Balance Due
according to the terms of this Purchase Agreement.
315418v1 CBRRC125-41
1
5���
(3): DEED/MARKETABLE TITLE: Subject to performance by Buyer, Seller
agrees to execute and deliver a Warranty Deed or Personal
Representative's Deed conveying marketable title to the Property to
Buyer, subject only to the following exceptions:
a. Building and zoning laws, ordinances, state and federal
regulations.
b. Reservation of minerals or mm ners rigl s to the State of
Minnesota, if any.
c. Public utility and drainage_easmentscord which will not
interfere with Buyer's inteictraLui6 of the Pr ty.
(4): DOCUMENTS TO BE WELTERED AT CLOSING 13 -: ELLER. In
addition to the Warranty Deed uired paragraph 2B(3ove, Seller
shall deliver to the Buyer: -_
a. Standard) Affidavit of Seller—
b. A "bring-dow°' ce , certifyingzat all of the warranties made
by Sellers in tli _.Purch temenfremain true as of the date of
dosing.
CeMcate that Seat is not a foreign national.
d. If :vtronmentalc vestigation by or on behalf of the Buyer
loses=thence of petroleum product or other pollutant,
_ cminant or-other hazardous substance on the Property,
- - eithk-a closure letter from the Minnesota Pollution Control
gencyIPCA) or other appropriate regulatory authority that
mediation has been completed to the satisfaction of the MPCA or
Sher authority; or (ii) Agreement for remediation/indemnification
d security as the HRA may require.
Well disclosure certification,if required, or, if there is no well on the
Property,the Warranty Deed given pursuant to paragraph 2B(4)
above must include the following statement: "The Seller certifies
that the Seller does not know of any wells on the described real
property."
If Seller is unaware of the location of a well and there is a building
permit issued for the Property prior to installation of a City water
system, the Seller agrees to have a Licensed Well Contractor
examine the Property for purposes of locating a well.
315418v1 CBR RC125-41
2
SD-5
Seller agrees to have all wells located on the Property, that are not
in use, sealed by a Licensed Well Contractor at Seller's expense.
Seller agrees to escrow funds at closing for the purpose of locating
and sealing wells if circumstances prohibit locating and sealing
wells prior to closing.
f. Any other documents reasonably requi te by the HRA's title
insurance company or attorney to evide that title to the Property
is marketable and that Seller has c .ed with the terms of this
Purchase Agreement.
3. Contingencies. Buyer's obligation to buy is ;gent upon th lowing:
a. Buyer's determination of markle title =pursuant to par -4 of this
Agreement.
b. Buyer's determination, in its sol etion, that the results of the
environmental investigation under this ement are satisfactory to Buyer;
c. The City has given f -and uncondition proval to a subdivision waiver
dividing the Property i Prone fallowing the execution of
this Agreement, the Buy% wilre an applon for subdivision waiver
which will be cosigned b} he Sal-= -----ilewith the City. The Buyer will
be respon for all requirlications.
d. Apprcia'---ifiRWAgreement the HRATBoard.
The contingencies=m be sati ed, or if apl able, waived not later than the Date of
Closing. The contingenci e r the bene of Buyer. Contingencies a, b, and c may be
waived by Bu tingeri may n _awed. If Buyer or its attorney gives written notice
to Seller_o -- e ncies b, c, and d are duly satisfied or, if applicable, waived, the
Buyer Seller shall rimmed to-6-My--_:th _transaction as contemplated herein.
If one or rie contingencies not satisfied, or is not satisfied on time, and is not waived, this
Purchase AgMhient shall there pon be void at the written option of Buyer, Seller shall return the
Earnest MoneBuyer, ate Buyer and Seller shall execute and deliver to each other the
termination of thi -itchas greement. As a contingent Purchase Agreement, the termination of
this Agreement is noted pursuant to Minnesota Statutes, Section 559.21, et. seq.
4. Title Examination/Curing Title Defects. The Seller will provide the Buyer with the
abstract of title for the Property for updating at Seller's expense. If the abstract is not available,
the HRA shall, within a reasonable time after Seller's acceptance of this Agreement, obtain a
commitment for title insurance ("Commitment") for the Property. Seller is responsible for
the cost of the tract check and name searches. Buyer is responsible for the exam fee and
title insurance premium. Seller's fees are to be paid on or before closing. The HRA shall
have ten (10) business days after receipt of the commitment and executed Purchase Agreement to
examine the same and to deliver written objections to title, if any, to Seller, or HRA's right to
315418v1 CBRRCI25-41
3
5 b
do so shall be deemed waived. Seller shall have until the Closing Date (or such later date as the
parties may agree upon) to make title marketable, at the Seller's cost. In the event that title to the
Property cannot be made marketable or is not made marketable by the Seller by the Closing
Date,then, this Agreement may be terminated at the option of the Buyer.
5. Environmental Investigation. The Seller warrants that the Property has not been
used for production, storage, deposit or disposal of any toxic or hazardous waste or substance,
petroleum product or asbestos product during the period of time the Seller has owned the
Property. The Seller further warrants that the Seller has no knowledge .ii information of any fact
which would indicate the Property was used for production, storm-deposit or disposal of any
toxic or hazardous waste or substance, petroleum product or a.As product prior to the date
the Seller purchased the Property. Notwithstanding the ab ther's warranty regarding
petroleum products does not preclude the presence of heatingil or o imilar products used
as a heating fuel for the dwelling but the Seller does wzaviritalikt if there-max a fuel tank on the
Property used for the storage of heating oil or other i1ar product, the Seller has no knowledge
of any leak in the tank or contamination caused theift. ---—=
6. Real Estate Taxes and Special Assessts-- Real estate taxes payable in the
year of closing will be pro-rated between the Buyer and Sell the date of closing. Seller shall pay
all real estate taxes payable in previous r , the entire unp alance of special assessments,
and all installments of special assessme and pendin uding special assessments
installments payable after the year of closiri Selo agrees to wy all assessments related to
service charges fiarnished to the Property prio _ the d_ `e sing g., delinquent water or sewer
bills, removed or diseased including t s hargesl d, pending, or certified to taxes
payable in the year of clolosing occurprior to the-late the amount of real estate taxes
due in the year of cl are avable from Herrhepin County, the current year's taxes will be
pro-rated based on the amount due rthe prior year.
7. ttsing Date a -dadfosirig will be on or before February 29, 2012.
Delivery l pap Lthe clo hall be made at the offices of HRA, 6700 Portland Avenue
South, hfield, Minn a 554 __•_ at-such other location as is mutually agreed upon by the
par ti deliveries and hoes to NM shall be made to the above address and marked to the
attention - •using SpeciaTik
8. Pssion/Uties/Removal of Property/Escrow.
(a) Possession The Seller agrees to deliver possession not later than the date of
closing.
(b)Utilities. City water and sewer charges, electricity and natural gas charges, fuel oil
and liquid petroleum gas shall be pro-rated between the parties as of the date of closing. Seller
shall arrange for final readings as of the date of closing.
(c) Personal Property. The Seller agrees to remove all debris and all personal
property not included herein from the Property before the possession date. Personal property not
so removed shall be deemed forfeited to and shall become the property of the Buyer. The Buyer
may inspect the Property immediately prior to closing and deduct from the purchase price
payable at closing an amount reasonably necessary to pay for the cost of removal of any debris
315418v1 CBR RC125-41
4
5b-'1
or personal property then remaining on the Property. The provisions of this paragraph shall not
merge with the deed and shall survive closing on the property.
(d) Escrow. Seller agrees that, at closing, the HRA may retain Five Hundred Dollars
($500.00) from the purchase price for the Property as an Escrow for payment of personal
property removal, disposal charges and utility charges. The retained amount, less deductions
provided for this in paragraph 8, will be delivered to Seller no later than 60 days following the date
of closing or delivery of possession, whichever is later. Said funds shall be held by Kennedy &
Graven, Chartered, as Escrow Agent, pursuant to the terms of the Escrow Agreement attached
here as Exhibit C.
(e) The HRA's ability to deduct amounts due under thi paragraph from the retained
escrow is not exclusive but is in addition to the HRA's rights at law_ tquity to collect such amounts
from Seller. The Seller is responsible for the amounts due underA s p Kph even if (i) the HRA
neglects to deduct the amount from escrow; or (ii) the escroftcl amour 1a=insuf cient to pay all
amounts due under this paragraph 8.
9. Seller Warranties.
(a) Sewer and water. Seller warrants that o-== -operty is connected to City sewer
and City water.
(b) Mechanics' Liens. Seller — at, prior to th �_�`g, Seller shall pay in full
all amounts due for labor, materials, machinery,n t ester tools rnished within the 120 days
immediately preceding the closing in connec on T � °o ti_.won, alteration or repair of any
structure upon or improvethe Property
(c) Noticeller vrants that ihas not received any notice from any
governmental authority-a violin of any law, finance or regulation in connection with the
-
Property.
( J Tenaeller rots that the Property is not now occupied by tenants and
was occupied by ters. at themv=the Seller first received the Buyer's written offer to
purchas -Property.
(e) ==1_oker Commission. Each party represents to the other that it has not utilized the
services of any estate biker or agent in connection with this Purchase Agreement or the
transaction contempd this Purchase Agreement. Each party agrees to indemnify, defend,
and hold harmless th ier party against and in respect of any such obligation and liability
based in any way upon=agreements, arrangements, or understandings made or claimed to have been
made by the party with any third person.
(f) Structures. The Seller warrants that the buildings, if any, are entirely within the
boundary lines of the Property. The parties acknowledge that the Property is being sold in "as is"
condition relating to the structural, operational, and mechanical systems.
10. Closing Costs/Recording Fees/Deed Tax. The HRA will pay: (a) the closing fees
charged by the title insurance or other closing agent, if any, utilized to close the
315418v1 CBR RC125-41
5
•
6 D-6
transaction contemplated by this Agreement; (b) the premium for title insurance policy, if any,
obtained by the HRA; and(c)the recording fee for the deed transferring title to the HRA. Seller will
pay all other fees normally paid by sellers, including (a) any transfer taxes and recording fees
required to enable the HRA to record its deed from Seller under this Agreement, and (b) fees and
charges related to the filing of any instrument required to make title marketable. Each party shall
pay its own attorney fees.
11. Inspections. From the date of this Agreement to the Date of Closing, HRA, its
employees and agents, shall be entitled to enter upon the Property tc anduct such surveying,
inspections, investigations, soil borings and testing, and drillin. monitoring, sampling and
testing of groundwater monitoring wells, as the HRA shall elecvded, that Seller is given at
least 24 hours' notice. _ --
12. Risk of Loss. It there is any loss or d age to the Prop between the date
hereof and the date of closing, for any reason including fire, vandalism, flobuOarthquake or act
of God, the risk of loss shall be on the Seller, the Property is destroyebstantially
damaged before the closing date, this Purchase-Agent shbecome null arvoid, at the
HRA's option. At the request of the HRA, Seller ag sign a cancellation of Purchase
Agreement. "
13. Default/Remedies. If th = defaults in a Ltthe covenants herein, the
Seller may terminate this Purchase Agreemen such tern-dilation all payments made
hereunder shall be retained by the Seller as Ihuidatge_s, tithe being of the essence. This
provision shall not deprive ;thher party of tht to entice specific performance of this
Purchase Agreement,pry- 'urchase Agreement hasot terminated and action to enforce
specific performanceommen within six months after such right of action arises. In the
event the Buyer detaulrits per Hance of the=mss of this Purchase Agreement and Notice
of Cancellation is served i th ezpursuant Minn. Stat. Section 559.21, the termination
period shall b 30) day =permite= mn. Stat., Section 559.21, Subd. 4.
Notice. --_ iotice, naai4 request or other communication which may or shall be
given owed by the partihall bemed to have been given or served on the date the same is
personalled upon one the foll6wing indicated recipients for notices or is deposited in the
United States= ail, registel or certified, return receipt requested, postage prepaid and
addressed as folI :
SELLER:
BUYER: Housing and Redevelopment Authority of the City of Richfield
Attn: Housing Specialist
6700 Portland Avenue South
Richfield, MN 55423
315418v1 CBR RC125-41
6
5 p '�
AGENT: Kennedy& Graven, Chartered
ATTN: Corrine Heine and
Catherine B. Rocklitz
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis,MN 55402
15. Entire Agreement. This Purchase Agreement, Exhibits, and other amendments
signed by the parties, shall constitute the entire Agreement between Iler and the HRA and
supersedes any other written or oral agreements between the pates relating to the Property.
This Purchase Agreement can be modified only in a writin perly signed on behalf of
Seller and the HRA.
16. Survival. Notwithstanding any other pr -s°of law ormo rt decision to the
contrary,the provisions of this Purchase Agreement mill survive closing.
IN WITNESS WHEREOF,the undersigned have °�:�w. R----t-this Agreement on the date and
year above.
Buyer: Housing and Redevelopment Aut j — .eller:
of the City of Richfield
By: _
Its Chair
5p,iEXHIBIT A
D
Legal Description of Property
The East 1/2 of Block 6 except the North 126 feet thereof and except the South 320.3 feet
thereof,Rich Fields,Hennepin County,Minnesota
'''. ----z:T-2 il-f----=-7:. --- --.------:':. __
3 15418v 1 CBR RC125-41
A-1
5 0,11
EXHIBIT B
Escrow Agreement
THIS AGREEMENT entered into this day of , 2011, by and
between ("Seller"), the HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF RICHFIELD, a Minnesota municipal corporation
CHIA" or"Buyer"), and KENNEDY& GRAVEN, CHARTERED ("E w Agent"or"Agent").
RECITALS
A. Seller and Buyer have entered into a Purchas lgreem ated
2007("Agreement") for the sale of prop t pcated at ==
Richfield, Minnesota and legally deiglibed on the attache hibit One (the
("Property") _=_
B. The parties desire to close the sale of the pperty orb
A( RFMENT --=-
The parties agree as follows:
1. Delivery of Pc session. Seller Waiver Ptimsion of the Property to Buyer on
or in accQtia the PurchaM Agreemenf entered into by the parties. The
Purchas&Agreemequires the Wier to pay all utilities and to remove all
person erty frbin the Property pn closing.
2. _ (a) 0:s do—snit g d_mecution of this Agreement, Seller agrees to
e.e--ss=hh-p, escree sum of X500.00 (the "Escrowed Funds") from the purchase
price,to--177--.1d by apt in a non-interest bearing account.
(b) Within 7s after requested by Agent, Buyer shall provide to Agent (with
y to Sellevidence of expenses incurred for the removal and disposal of
pnal propty and for payment of utility charges for services provided to the
Proper prirto date of possession, if any. Agent shall reimburse Buyer for the
incurreenses from the Escrowed Funds within 7 days following receipt of
such evidence from Buyer.
(c) Agent shall deliver to Seller the balance of the Escrowed Funds on deposit,
less deductions provided for in paragraph 6(b) above, no later than 30 days
following vacation of the Property by Seller.
(d) The sole duties of Agent shall be those described herein, and Agent shall be
under no obligation to determine whether the other parties hereto are
complying with any requirements of law or the terms and conditions of any other
315418v1 CBR RC125-41
B-1
5b4
agreements among said parties. Agent shall have no duty or liability to verify any
amounts deducted from the retained amount and Agent's sole responsibility shall be
to act expressly as set forth in this Escrow Agreement.
7. Escrow Agent Liability. The sole duties of Escrow Agent shall be those described
herein, and Escrow Agent shall be under no obligation to determine whether the
other parties hereto are complying with any requirements of law or the terms and
conditions of any other agreements among said parties. Escrow Agent may
conclusively rely upon and shall be protected in acting o> notice believed by it to
be genuine and to have been signed or presented tie proper party or parties,
consistent with reasonable due diligence on Escrent's part. Escrow Agent
shall have no duty or liability to verify any sucl notic and its sole responsibility
shall be to act expressly as set forth in this Esc-Mw Agre t.
Seller and Buyer understand that A is legal counsel touyer and each
consents to Agent's serving as Escro gent ncilwithstanding su l resentation.
In the event Agent determines,in its soincretioat it cannot conue to serve as
Escrow Agent herein, Agent shall deposends with Old Republic National
Title Insurance Company or such other k-77-7:0_- Agent acceptable to Seller and
Buyer. Seller consents to wt's continued resentation of Buyer after a deposit is
made, and Buyer agrees to-----_-_-ascrow fees c ucLby the substitute Escrow
Agent. - -_
8. Notices to 1t to the parks this _ went shall be sent by mail or
personal_ i
SELLER_
BUYER mousing and Redevelopment Authority
____ - =wand for the City off Richfield
Mtn: Housing Specialist
6700 Portland Avenue South
Richfield, MN 55423
AGED__= Kennedy& Graven, Chartered
ATTN: Corrine Heine and
• Catherine B. Rocklitz
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
IN WITNESS WHEREOF, the parties have executed this agreement as of the date
written above.
315418v1 CBRRC125-41
B-2
5 D/13
SELLER: BUYER:
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE
CITY OF RICHFIELD
By:
Its Chair =
And by: —
Its Executi= �.cor._.___._..._._.....
No s
_.._._... ....
ESCROW AGENT: -, e
KENNEDY&GRAVEN,CHARTE'
BY:
315418v1 CBR RC125-41
B-3
5p
Exhibit One
Legal Description of Property
V
315418v1 CBR RC125-41
B-4
AGENDA ITEM#: 5E
REPORT#: 6
STAFF REPORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 17, 2012
REPORT PREPARED BY: JULIE URBAN/MICHELLE LEWIS,HOUSING
SPECIALISTS
NAME,TITLE
REPORT PRESENTER: KAREN BARTON,ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: ►% •
A'•; SIGNA
/, s /I �j
REVIEWED BY EXECUTIVE DIRECTOR: r _/L
a
ITEM FOR HRA CONSIDERATION:
Authorize a transfer of funds from the Development Fund to the City to assist in the acquisition
and removal of 6315 16th Avenue; and the removal of 6420 17th Avenue.
I. RECOMMENDED ACTION:
By Motion: Authorize the transfer of up to $55,000 from the
Development Fund to the City to assist in the acquisition and removal
of 6315 16th Avenue; and the removal of 6420 17th Avenue.
II. BACKGROUND
The property at 6315 16th Avenue was listed for sale through the MLS on
December 30, 2011. The property is vacant and is bank-owned as a result of
foreclosure.
The property is located in the Cedar Avenue Corridor Redevelopment Area as
identified in 2004, and is a prime candidate for acquisition to facilitate the eventual
redevelopment of the Cedar Point Housing Redevelopment Area (the 6300 and
6400 blocks of 17th Avenue). The area is currently occupied by 29 single-family
houses, but is zoned MR-3, High Density Residential.
The City has made an offer on 6315 16th Avenue for$80,000, contingent upon
Council approval on January 24, 2012 and contingent upon approval by the
01172012 6315 16th Ave Acquisition.doc
Housing & Redevelopment Authority (HRA) on January 17, 2012. Staff was notified
that the seller has received multiple offers for the property.
There are limited City funds available in the Airport Noise Abatement Program
(ANAP) and Cedar Avenue Mitigation Area (CAMA) fund to put toward the
acquisition of the property; however they are insufficient to cover the entire
purchase price. Up to $30,000 in additional funds is needed from the HRA in order
to complete the purchase of the property and to cover legal, closing, and holding
costs.
The City also recently acquired another property in the Cedar Point Housing
Redevelopment Area at 6420 17th Avenue utilizing ANAP and CAMA funds as well.
Staff will pursue sale of the two homes to a house mover. However, in the event
the houses can't be sold to a house mover, up to $25,000 in additional funds may
be needed for the abatement of hazardous materials and removal of the structures.
Funds are available in the Development Fund to cover these additional costs.
III. BASIS OF RECOMMENDATION
A. POLICY
• The 2009 Richfield Comprehensive Plan Housing Goals and Policies
direct the policy work related to Land Use and Community Facilities.
Specifically, this acquisition is supported and encouraged by the
following goals and policies, as stated in the 2009 Richfield
Comprehensive Plan.
o Goal: Beyond the City Center, develop identifiable
nodes, corridors and gateways throughout the
community.
• Facilitate an intense mixed pattern of regional and
community-oriented land uses along regional
corridor routes including 1-494 and Cedar Avenue.
• Encourage a mix of uses that serve a market in
and around Richfield in community commercial
nodes.
• Create meeting places in multi-unit complexes to
allow for interaction between its residents and
between its residents and surrounding neighbors.
• Improve gateways to create a visual means of
welcoming people to Richfield.
• In 2004 the City completed a redevelopment master plan for the
Cedar Avenue Corridor area. Much of the area in the master plan,
including this property, is impacted by the noise generated from the
new north/south runway built at the adjacent airport.
B. CRITICAL TIMING ISSUES
• Staff submitted a Purchase Offer for the acquisition of 6315 16th
Avenue contingent upon HRA and City Council approval on January
17th and 24th, respectively.
• While redevelopment of the area is not imminent, the property is in a
designated redevelopment area and the modest cost of the property
and the availability of ANAP and CAMA funds provide an opportunity
to further the City's and HRA's goals to redevelop the area at some
point in the future.
• Both properties are scheduled for a Finding of Consistency review at
the Planning Commission on January 23, 2012.
C. FINANCIAL
• ANAP and CAMA funds are available to aid in the purchase of the
property.
• There are sufficient funds available in the Development Fund to
complete the purchase and removal of both properties. Absent the
transfer of HRA funds to the City, the property cannot be purchased
by the City.
• It is likely both properties will be transferred to HRA ownership from
the City in the near future.
D. LEGAL
• The Purchase Agreement is contingent upon the City Council's and
HRA's approval.
• The City of Richfield is the purchaser.
• There are no known title conditions that would affect the purchase.
IV. ALTERNATIVE RECOMMENDATIONS)
• Decide not to authorize the acquisition of 6315 16th Avenue. The Purchase
Agreement will then be null and void.
V. ATTACHMENTS
• Resolution
• Map of Acquisition Area
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
Y/ \
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING TRANSFER OF UP TO $55,000 IN THE HOUSING AND
REDEVELOPMENT AUTHORITY DEVELOPMENT FUND TO THE CITY OF RICHFIELD
TO PURCHASE/REMOVAL OF REAL PROPERTY AT 6315 16TH AVENUE AND THE
REMOVAL OF 6420 17TH AVENUE
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota is supportive of the furthering the goals of the Cedar Avenue Corridor
Redevelopment Area;
WHEREAS, the City of Richfield, Minnesota desires to purchase certain real
properties pursuant to and in furtherance of the Cedar Avenue Corridor Redevelopment
Area, said properties being described as:
6315 16th Avenue South
Lot 3, Block 1, Iversons 2nd Addition, Hennepin County (Abstract)
AND
6420 17th Avenue South
Lot 13, Block 2, Iversons 2nd Addition, Hennepin County (Abstract)
WHEREAS, the City of Richfield also desires to remove the buildings on the real
properties;
WHEREAS, limited funds remaining in the City Airport Noise Abatement Program
and Cedar Avenue Mitigation Area Program cannot cover the costs of property purchase
and building removal; AND
WHEREAS, HRA Development Funds are available for acquisition and removal
purposes;
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota that it authorizes the following:
Transferring up to $55,000 from the Development Fund to the City of Richfield for
the acquisition/removal of 6315 16th Avenue and the removal of 6420 17th Avenue.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 17th day of January 2012.
Chair
ATTEST:
Secretary
)
Acquisition - 6315 16th Avenue South
6315
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64th Street `-
6420
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Community Development Department r 111
0 125 250 500 1-2012
AGENDA ITEM#: 5F
REPORT#: 7
STAFF REPORT
RICHFIELD HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 1712012
REPORT PREPARED BY: JULIE URBAN/MICHELLE LEWIS,HOUSING
SPECIALIST
NAME,TITLE
REPORT PRESENTER: KAREN BARTON,ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: ill
AitVati■ F.
"ow ,_s,.„ i,
REVIEWED BY EXECUTIVE DIRECTOR: 2 a y ; 4 ...e..."
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution authorizing the Executive Director and Housing and
Redevelopment Authority Chair to execute instruments to purchase vacant and foreclosed
properties using the Housing and Redevelopment Fund.
I. RECOMMENDED ACTION:
By Motion: Approve a resolution authorizing the Executive Director
and Housing and Redevelopment Authority Chair to execute
instruments necessary to purchase six to eight vacant and foreclosed
houses using up to $513,200 from the Housing and Redevelopment
Fund through December 31, 2012.
II. BACKGROUND
Annually, the Housing and Redevelopment Authority (HRA) budgets funds to
purchase properties to further the Richfield Rediscovered and New Home Programs
by removing small, substandard, obsolete, or dilapidated homes and then replacing
them with new homes. The current housing market offers opportunities for the HRA
to further these programs, to help stabilize neighborhoods, and to purchase
substandard, vacant and foreclosed properties at reasonable prices.
011712 Foreclosure Purchase Authority Hsg Trust
The current market of vacant and foreclosed properties is competitive and flexibility
to respond quickly to opportunities to purchase vacant and foreclosed properties is
important. Lenders enforce strict timelines and only a limited number of lenders
offer preference to public agencies. Additionally, staff uses two "first look"
programs that offer cities and non-profits the chance to purchase properties before
they are available on the open market; however, they both require a response to
purchase within days.
In 2010 the HRA authorized the Executive Director and HRA Chair to execute
instruments necessary to purchase up to nine vacant and foreclosed houses using
up to $1,060,000 from the Housing and Redevelopment Fund. Under that
authorization, the HRA purchased seven foreclosed and vacant properties using
$762,350.
The HRA extended that authorization for 2011 and staff is proposing to extend the
authorization again in 2012 to allow the Executive Director and HRA Chair the
authority to acquire foreclosed properties meeting the following parameters, without
obtaining prior HRA approval for each property:
• The property is foreclosed;
• The property is vacant;
• The property is blighted (as defined and required by the regulations
governing the Housing and Redevelopment Fund);
• Prior to acquisition, staff establish an appropriate sale price based on recent
sales activity and/or assessed value and housing condition; and
• Expenditures for all properties do not exceed a total of$513,200.
Staff will continue to report back to the HRA each month with a status of acquisition
activity.
III. BASIS OF RECOMMENDATION
A. POLICY
• It is in the best interest.of the City to ensure neighborhood stability and
reduce blight.
• Through the City's Richfield Rediscovered program, the HRA
purchases and removes substandard and functionally obsolete
housing and replaces it with newer, higher valued homes.
• Through the City's New Home program, the HRA purchases and
removes substandard and functionally obsolete housing and replaces
it with new, affordable homes.
• The 2008-2018 Richfield Comprehensive Plan states as policy:
o Encourage the creation of"move-up" housing through
new construction and home remodeling.
o Promote the development of a balanced housing stock
that is available to a range of income levels.
B. CRITICAL ISSUES
• Richfield has suffered a high number of foreclosures since 2008 and is
expected to have more over the next several years.
• Neighborhoods in which there are one or more foreclosed and vacant
homes have detrimental impacts on the surrounding property values.
• In addition to being in poor condition, some foreclosed properties have
function, layout, size and other issues that make them candidates for
the Richfield Rediscovered and New Home programs.
• The Richfield Rediscovered and New Home program funds can be
used to purchase vacant and foreclosed properties to accomplish
HRA goals throughout the City of Richfield.
• Authorization to utilize these two HRA programs would be limited to
purchasing vacant and foreclosed properties only. If other purchasing
opportunities arise, staff would seek an approved Purchase
Agreement by the HRA before moving forward with purchasing
activities.
C. FINANCIAL
• The 2012 budget designates $332,200 for the Richfield Rediscovered
program and $181,000 for the New Home program for a total of
$513,200 for property acquisition.
• Funding for these programs is allocated through the HRA Housing and
Redevelopment Fund.
• Total acquisition expenditures will not exceed the budgeted amount of
$513,200.
D. LEGAL
• Legal counsel reviewed the resolution.
IV. ALTERNATIVE RECOMMENDATION(S)
• Do not extend the authorization for the Executive Director and HRA Chair to
execute agreements to purchase foreclosed homes.
V. ATTACHMENTS
• Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
5d \
•
RESOLUTION NO.
RESOLUTION AUTHORIZING THE HOUSING AND REDEVELOPMENT AUTHORITY
STAFF TO ACQUIRE CERTAIN FORECLOSED HOMES WITHIN THE CITY AND TO
EXECUTE ALL INSTRUMENTS AND CONTRACTS RELATED THERETO
WHEREAS, pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the
"HRA Act") the City Council of the City of Richfield, Minnesota (the "City") has created the
City of Richfield Housing and Redevelopment Authority (the "HRA") and provided it with
the powers and duties of the HRA Act; and
WHEREAS, the HRA Act authorizes the HRA to acquire, improve, own, hold, sell,
lease, exchange, transfer, assign, pledge or dispose of any real or personal property; and
WHEREAS, the HRA has undertaken a multi-faceted response to the impact of the
foreclosure crisis on the community involving the use of the Housing and Redevelopment
Fund to acquire and demolish substandard, vacant, foreclosed single family homes; and
WHEREAS, in order to expand the effectiveness of the Program the HRA wishes
es
to directly purchase certain foreclosed properties to demolish and hold the lots for future
development; and
WHEREAS, it is the desire of the HRA Board of Commissioners to establish
certain parameters for such acquisitions and to authorize its Executive Director and HRA
Chair to proceed therewith without specific Board approval of each transaction.
NOW, THEREFORE, BE IT RESOLVED by the City of Richfield Housing and
Redevelopment Authority:
1. That the Executive Director and HRA Chair, with the assistance of HRA legal
counsel, is hereby authorized to enter into purchase agreements and acquire in the
name of the Authority up to eight (8) single family, vacant, foreclosed homes (the
"Properties") on the conditions that:
(a) The Properties are each acquired with the Housing and Redevelopment
Fund;
(c) Each Property is a foreclosed property acquired from a lender or a lender's
designee;
(d) The Properties have been vacant for at least 90 days prior to entering into a
Purchase Agreement;
(e) The Property is determined to be blighted as required by Housing and
Redevelopment Fund regulations;
(f) Prior to each acquisition staff establish an appropriate sale price based on
reasonable conditions;
(g) The total expenditures on all properties does not exceed $513,200; and
(h) Prior to the acquisition of each property staff conducts appropriate due
diligence to protect the HRA's interest.
2. That the Executive Director and HRA Chair are authorized to execute such
documents as shall be required in order to carry out the delegation provided in
paragraph 1 hereof.
3. That the Executive Director shall report the acquisition of any Property pursuant to
this Resolution at the next regular HRA meeting.
4. That disposition of acquired Properties shall be only by action of this Board.
5. That the authority granted hereby shall expire on December 31, 2012.
Adopted by the Richfield Housing and Redevelopment Authority of the City of
Richfield, Minnesota this 17th day of January, 2012.
Chair
ATTEST:
Secretary