06-18-07 agenda
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CITY OF RICHFIELD, MINNESOTA
MONDA V, JUNE 18, 2007
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL
COUNCIL CHAMBERS
6700 PORTLAND AVENUE
7:00 P.M.
AGENDA
Call to order
Roll call
1. Approval of minutes of Regular HRA Meeting of May 21, 2007
2. HRA approval of agenda
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3. 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 agreement with Center for Environment and Energy to
administer Energy Advantage Program S.R. No. 23
B. Consideration of approval of purchase agreement selling site which 'contains the
City's lift station at 7700 Knox Avenue to City of Richfield S.R. No. 24
Notes:
4. Consideration of proposal made by owner of 6621 Sheridan Avenue for settlement of
deferred $12,995 loan in amount of $9,097
Staff Report No. 25
Notes:
5. Executive Director report
6. 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.
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AGENDA ITEM #
REPORT #
3A
23
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STAFF REPORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JUNE 18, 2007
REPORT PREPARED By:
VANESSA HAIGHT, HOUSING SPECIALIST
NAME, TITUi
REPORT PRESENTER:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
DEPARTMENT DIRECTOR REVIEW:
NAME, TnVi
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR BRA CONSIDERATION:
Consideration to authorize an agreement with Center for Environment and Energy to
administer the Energy Advantaqe Proqram.
I. RECOMMENDED ACTION:
By Motion: Approve the attached Agreement with Center for
Environment and Energy to administer the Energy Advantage
Program.
I II.
BACKGROUND I
With energy conservation again a priority for many and with the Richfield Housing
and Redevelopment Authority (HRA) being a leader in energy conservation
programming, a new program was devised and submitted to Minnesota Housing
Finance Agency (MHFA) to consider. In response, the MHFA authorized funding of
a new loan program called the "Richfield Energy Advantage Program". Funds will
be provided in the form of a deferred loan to assist approximately 20 low-income
homeowners below 80 percent of area median income to make energy
improvements to their homes:
061807 CEE Energy Advantage Contract
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Qualifying Homeowner
Household Size
1
2
3
4
5
6
Maximum Income
$41,700
$47,700
$53,650
$59,600
$64,350
$69,150
Homeowners planning improvements such as replacement of windows, doors,
furnaces, air conditioning, insulation, and built in appliances will be eligible. The
deferred loan, zero interest and no monthly payments, would cover ten percent of
the total project cost up to $1,500 for as long as the applicant owned the home. If
the applicant makes more than $2,999 in improvements, the HRA, using local funds
would contribute $250 more to the project.
Genter for Environment and Energy (GEE), a leader in energy loan administration,
will administer the Energy Advantage program on behalf of the HRA. GEE has
successfully administered a number of programs on behalf of the HRA in the past.
The attached scope of services (Exhibit B) outlines the responsibilities of both the
HRA and GEE.
. I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The HRA is a leader in energy conservation programming, having
administered an award winning energy audit program in the past.
With rising energy prices, the need for an energy improvement
incentive program is needed.
. The cost of energy is placing a higher burden on household expenses,
particularly impacting those with lower incomes.
. The HRA has secured funding from MHFA to provide an incentive for
low-income homeowners to make energy conservation improvements.
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I C.
I B. CRITICAL ISSUES I
. GEE will administer the loan as part of their portfolio of programs.
. GEE has access to a number of loan programs that can be combined
with the Energy Advantage program. Utilizing GEE as an
administrator will enhance the Energy Advantage program by
connecting residents with complementary funding sources.
. A number of residents have expressed interest in the Energy
Advantage Program and look forward to the kick-off of the program.
FINANCIAL I
. The activity was planned for in the 2007 HRA budget.
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ID.
LEGAL I
. Legal counsel has reviewed the Agreement.
I IV. ALTERNATIVE RECOMMENDATION(S)
. Delay action on the Agreement.
. Do not authorize the Agreement.
I V. ATTACHMENTS
. Loan Origination Agreement
. Exhibit A: Program Description
. Exhibit B: Scope of Services
. Participation Agreement
I VI. PRINCIP AL PARTIES EXPECTED AT MEETING
. N/A
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LOAN/GRANT ORIGINATION AGREEMENT
This lOAN/GRANT ORIGINATION AGREEMENT ("Agreement") is made as of the _day of
by and between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR
THE CITY OF RICHFIELD, with offices at 6700 Portland Avenue, Richfield, MN 55423 ("Authority"),
and CENTER FOR ENERGY AND ENVIRONMENT, with offices at 212 3rd Avenue North, Suite 560,
Minneapolis, Minnesota 55401 ("CEE").
RECIT AlS
A. The Authority has a need for certain professional services and desires to retain CEE to
provide said services, all subject to the terms and conditions contained in this
Agreement.
B. CEE is qualified to provide the desired professional services and desires to provide said
services for the Authority, all subject to the terms and conditions contained in this
Agreement.
NOW, THEREFORE, in consideration of the foregoing and the mutual promises contained in this
Agreement, the parties agree as follows:
1. Services/Scope of Work
1.1 CEE shall in conjunction with the Authority develop and deliver the Richfield
Energy Advantage Program (hereinafter the "Program") and more fully described in
Exhibits A and B attached hereto. All activities delivered under the Program shall be
coordinated with the Authority's designated program manager.
1.2 CEE shall assist the Authority staff in marketing the Program. CEE shall insure that
the Authority's sponsorship of the program is a prominent part of any marketing
effort.
1.3 CEE shall originate and close all Program loans and grants. Pursuant to the
program set forth in Exhibit A, CEE shall follow the procedure described below:
1.3.1 At the time of closing, CEE will require the borrower to execute a
rehabilitation participation agreement.
1.3.2 Upon closing the loan/grant. CEE will invoice the City for the
principal amount of the deferred loans and grants.
1.3.3 The City will remit the amount of the loan and grant principal to CEE
in the manner set forth in Section 2.2 hereof which shall then place said
funds in escrow pursuant to the Participation Agreement. The funds shall
then be disbursed by CEE in accordance with the terms of the
Participation Agreement.
1.4 The funding source is exclusively from the Authority and the program will be
referred to as the Program.
CONTRACT between CITY OF RICHFIELD HRA and CENTER FOR ENERGY AND ENVIRONMENT
CEE Doc#871
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2. Compensation
2.1 The Authority shall compensate CEE for services provided under this agreement
according to the following schedule:
Loan/Grant Oriaination $375.00
The Authority shall pay CEE an Origination Fee for each loan/grant closed using the
Authority Funded Program. The Origination Fee shall compensate CEE for assisting
borrowers with loan/grant applications, preparation of loan/grant documents,
loan/grant closing and other direct costs of processing loans/grants. Mortgage filing
costs shall be paid by the borrower. CEE shall provide a copy of all closing documents
including the loan note and mortgage as documentation of the loan/grant closing.
Installation Verification $70.00
The Authority shall pay CEE a fee for each Installation Verification completed. The
Installation Verification shall be performed by a CEE housing technician whenever the
project does not require a building permit.
The Authority shall compensate CEE only for services completed.
As requested, CEE will provide marketing services for the following fees:
CEE Program Manager
Marketing Coordinator
$65.00/hour
$55.00/hour
Hourly rates are inclusive of all overhead expenses and will be charged only for hours
directly related to marketing. CEE will be reimbursed by the Authority for any non-labor,
out-of-pocket expenses, relating to these services on a dollar-for-dollar basis with no
mark-up.
2.2
CEE shall invoice the Authority not more than two times each month for (i) the principal of
loans/grants in the Authority Funded Program, (ii) Origination and Installation Verification
Fees, and any (iii) Marketing Fees. The Authority shall pay CEE within 20 days of receipt
of the invoice.
3. AUTHORITY's Obligations
3.1 If requested by CEE, the Authority shall make reasonable efforts to respond
promptly to requests from CEE for information and approvals regarding the
services to be provided under this Agreement.
3.2 If requested by CEE, the Authority shall make reasonable efforts to obtain
information and or permission for access from clients which may be necessary
for CEE to provide the services under this Agreement.
3.3 The Authority shall provide sufficient funding to fund eligible Authority funded
loans/grants. The Authority shall determine the amount of funds allocated to
the Program.
CONTRACT between CITY OF RICHFIELD HRA and CENTER FOR ENERGY AND ENVIRONMENT
CEE Doc#871
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3.4 The Authority shall establish eligibility for the Authority Funded Program and shall
provide these criteria in writing to CEE prior to commencement of any
marketing efforts.
3.5 The Authority shall make reasonable efforts to respond promptly to requests from
CEE for information and approvals regarding the services to be provided under
this Agreement.
4. CEE's Obligations
4.1 CEE shall use its best efforts to provide services under this Agreement in a
professional manner consistent with the care and skill used by reputable
members of CEE's profession.
4.2 CEE, and all of its employees or agents, shall comply with all statutes,
ordinances, rules, regulations and other laws applicable to the provision of
services under this Agreement.
4.3 CEE shall secure all permits and licenses required for performance of the
services under this Agreement.
4.4 CEE shall not engage in discriminatory employment practices against any
employee or applicant for employment and shall in all respects comply with all
federal, state and local laws, regulations and orders, including without limitation,
Chapter 363 of the Minnesota Statutes, as amended from time to time. Failure
to comply with the provisions hereof shall be deemed a material default under
this Agreement.
5. Term and Termination
5.1 Unless earlier terminated as provided in the following paragraphs, this
Agreement shall become effective on July 1, 2007, and continue through
December 31 , 2008.
5.2 This Agreement may be terminated by either party, for any reason or no reason,
immediately upon written notice to the other party. In the event this Agreement
is terminated by CEE prior to the expiration of the term set forth in paragraph
5.1, the Authority shall compensate CEE for all services delivered up the date of
termination and CEE shall provide the Authority with such information as the
Authority may request regarding the status of the Authority Funded Program.
5.3 Any termination of this Agreement shall not release either party from their
respective obligations under sections 7 and 8 of this Agreement.
6. Insurance
6.1 During the term of this Agreement, CEE will obtain and maintain insurance in the
amounts listed below:
General Liability
Automobile Liability
Excess Liability
Workers Compensation
$2,000,000
$1,000,000
$1,000,000
Aggregate Limit
Combined Single Limit
Aggregate Limit
Statutory Limit
CONTRACT between CITY OF RICHFIELD HRA and CENTER FOR ENERGY AND ENVIRONMENT
CEE Doc#871
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7.
Liability and Indemnification
7.1 CEE represents that the services to be provided under this Agreement are
reasonable in scope and that CEE has the experience and ability to provide the
services.
7.2 CEE warrants that any services provided hereunder shall be done in a
professional and workmanlike manner.
7.3 CEE shall indemnify, defend and hold harmless Authority and its officers,
directors, employees and agents from and against any and all claims,
damages, losses, injuries and expenses (including attorneys' fees and damages
for death, personal injury and property damage) which Authority may incur as a
result of any act or omission by CEE in providing services under this Agreement.
7.4 Authority shall indemnify, defend and hold harmless CEE and its officers,
directors, employees and agents from and against any and all claims,
damages, losses, injuries and expenses (including attorneys' fees and damages
for death, personal injury and property damage) which CEE may incur as a
result of any act or omission by Authority in discharging its duties under this
Agreement.
8.
Confidentiality
Unless otherwise agreed by CLIENT in writing, CEE shall maintain in confidence and not
disclose to any third party any information obtained regarding Authority and/or any of
Authority's clients for which CEE is providing services; provided, however, that, subject
to the provisions of Section 13.7, this obligation to maintain confidentiality shall not
apply to:
a) Information in the public domain at the time of disclosure;
b) Information which becomes part of the public domain after disclosure
through no fault of CEE; or
c) Information which CEE can demonstrate was known by it prior to the date
of this Agreement.
Notwithstanding the foregoing, subject to the provisions of Section 13.7, CEE shall be
entitled to disclose the documents or client information covered by this paragraph to
governmental authorities to the extent CEE reasonably believes it has a legal obligation
to make such disclosures and to the extent CEE reasonably deems to be necessary;
provided, however, that if CEE believes that any such disclosure is required by law, it shall
provide advance notice to the Authority to provide the Authority with a reasonable
opportunity to attempt to obtain an injunction or other protective order preventing such
disclosure.
9.
Relationship of Parties
CEE will provide services as an independent contractor under this Agreement.
Neither CEE, nor any of its employees or agents, shall be considered employees of the
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CONTRACT between CITY OF RICHFIELD HRA and CENTER FOR ENERGY AND ENVIRONMENT
CEE Doc#871
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3A-5
Authority for any purpose, and neither shall CEE be eligible for any compensation or
benefits which the Authority may provide to its employees from time to time. CEE shall
be solely responsible for all employment and other taxes applicable to providing
services hereunder, and the Authority will not withhold any taxes or contributions from
the compensation payable to CEE under this Agreement.
10.
Notices
All notices, requests, demands and other communications required to be given in
writing under this Agreement shall be given to the other party in person or by mail as
provided in this section. If delivered personally, notice shall be deemed to have been
duly given on the date of delivery. If delivered by mail, such notice shall be sent via
first class U.S. mail, postage prepaid, to the address set forth at the beginning of this
Agreement or such other address as a party may otherwise request by written notice,
and notice shall be deemed duly given three (3) business days after mailing.
11. Assignment
This Agreement shall be binding upon and inure to the benefit of the parties and their
respective heirs, successors and assigns; provided, however, that neither party shall
assign or transfer in any manner, this Agreement or any portion hereof without the
prior written consent of the other party, and any attempt to assign or transfer without
prior written consent shall be void and of no effect.
12. Governing Law
This Agreement shall be governed by and construed in accordance with the laws of
the State of Minnesota.
13. Miscellaneous
13.1 Headings and captions used in this Agreement are for convenience only and
shall not affect the meaning of this Agreement.
13.2 This Agreement contains the entire agreement of the parties and supersedes all
prior agreements, discussions and representations, written or oral, concerning
the subject matter hereof.
13.3 No waiver by the Authority of any term or condition of this Agreement or any
document referred to herein shall, whether by conduct or otherwise, be
construed as a waiver or release of any other term or condition of this
Agreement.
13.4 This Agreement may only be amended in a written agreement signed by both
parties.
13.5 Except as expressly set forth in section 7, the rights and benefits under this
Agreement shall inure solely to the benefit of the Authority and CEE, and this
Agreement shall not be construed to give any rights, benefits or causes of
action to any third party.
CONTRACT between CITY OF RICHFIELD HRA and CENTER FOR ENERGY AND ENVIRONMENT
CEE Doc#871
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13.6 The invalidity or partial invalidity of any provision of this Agreement shall not
invalidate the remaining provisions, and the remainder shall be construed as of
the invalidated portion shall have never been a part of this Agreement.
13.7 CEE shall comply with the provisions of Minnesota Statutes Chapter 13
(Government Data Practices) that are applicable to the Authority and shall not
disseminate any information concerning loan/grant requests of the borrowers
without the prior written approval of the Authority.
13.8 This Agreement may be signed in any number of counterparts, each of which
shall be deemed an original and one and the same instrument.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written
above.
HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY OF RICHFIELD
By:
Its:
Print Name
Date:
By: Its:
. Print Name
Date:
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CENTER FOR ENERGY & ENVIRONMENT
By:
Its: President
Sheldon Strom
Date:
Tax ID # 41-1647799
CONTRACT between CITY OF RICHFIELD HRA and CENTER FOR ENERGY AND ENVIRONMENT
CEE Doc#871
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EXHIBIT A
Pro2ram Overview
The Richfield Housing and Redevelopment Authority (HRA) is making $30,000 available to
provide deferred loan funding to low-income homeowners owners of the City of Richfield make
energy-related improvements to their properties. The Richfield Energy Advantage Program
offers both deferred loan financing as well as grants. This program is designed to supplement
existing loan programs available from MHF A, CEE, private lenders and other resources. It is not
intended to be the sole source of rehab funds available in the City.
General Pro2ram Guidelines
Terms of the Richfield Energy Advanta2e Pro2ram
Pro2ram Intent: The intent of the Program is to assist low-income homeowners to make energy
improvements to their homes. The Program provides financial incentives.
Loan Pool: $30,000 in Deferred Loans. Grant Pool: $5,000.
. Interest Rate: 0%
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Income Limit: Maximum income limit shall be as follows.
Familv Size Maximum Income
I $41,700
2 $47,700
3 $53,650
4 $59,600
5 $64,350
6 $69,150
7 $73,900
8+ $78,650
Loan term: 30 years. There will be no monthly or periodic payments due on the loan unless the
borrower sells or transfers title of the property prior to the loan being completely forgiven, at
which time the borrower will be responsible for paying the loan in full.
Loan Amount: The Loan Amount will equal 10% of the project cost.
Minimum Loan: $250
Maximum Loan: $1,500
Additionally, for projects exceeding $2,999, the HRA will provide a $250 grant.
Example 1: Total project cost is $2,500. The owner would receive a deferred loan in the
amount of $250 and would be responsible to pay the $2,250 balance of the project.
Richfield HRA Energy Advantage Program
Center for Energy and Environme"nt
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6/06/07
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Example 2: The total project cost is $7,000. The owner would receive a deferred loan in
the amount of $700 and a grant from the HRA for $250. The owner would be responsible
for the balance of the project or $6,050.
Eli2ible properties: Properties must be located in the City of Richfield. Property must be a
single-family dwelling.
Eli2ible Improvements: Eligible energy improvements and replacements will include items that
have a proven payback such as windows, doors, furnaces, air-conditioning, insulation, water
heaters and built-in appliances.
Ineli2ible Improvements: work initiated prior to the loan application being received by CEE,
"general improvements", room additions or expansions, recreation or luxury projects (pools,
lawn sprinkler systems, playground equipment, saunas, whirlpools, etc.), furniture, non-built-in
appliances, business-related uses, improvements of a non-capital nature, loans for working
capital, debt service, or refinancing of existing debt.
Loan - to Value Ratio: The ratio of all loans secured by the property, including the new loan,
must not exceed 110% of the property value.
Loan Security: All loans will be secured with a mortgage in favor of the Minnesota Housing
Finance Agency (MHF A).
Application Processin2: Applications will be addressed on a first-come, first-served basis.
Borrowers must provide a completed application packet per program requirements.
Work bv Owner: Work can be performed on a "sweat equity" basis. Loan funds cannot be
used to compensate for labor, only for materials. The owner must clearly demonstrate the ability
to complete the work within the program time requirement. When required by city ordinance, a
building permit must be obtained by the borrower.
Contractors/Permits: Contractors must be currently licensed when required by city/state
ordinance. Permits must be obtained when required by city ordinance.
Work Completion: Work must be completed within 120 days of the loan (or loan/grant)
closing. CEE may authorize exceptions on a case by case basis.
Total Proiect Cost: It is the borrower's responsibility to obtain the amount of funds necessary
to finance the entire cost of the work. In the event the final bill exceeds the original loan amount,
the borrower must obtain the additional funds.
Custody of Funds: Loan funds will remain in the custody of CEE until payment for completed
work.
Richfield HRA Energy Advantage Program
Center for Energy and Environment
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. Disbursement Process: CEE will verify the installation of the improvements, ensure that any
needed permits have been issued, and ensure that the appropriate inspections and approvals have
occurred. Payment to the contractor (or owner in sweat equity situations) will be made upon
completion of work and/or inspection by the CEE. The following items must be received prior to
final disbursement of funds:
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1. Final proposal or invoice from contractor (or materials list from supplier).
2. Final inspection verification by CEE (if required).
3. Completion certificate(s) signed by borrower and contractor.
4. Proof of payment to contractor for any required funds from the owner (if any).
5. Lien waiver for entire cost of work.
6. Evidence of required city permit
Undenvriting Decision: Applicants must have an acceptable credit history: Property owners
must be current on mortgage/contract for deed payments and property taxes.
Loan Costs: The HRA will pay the loan origination and related fees out of the Administrative
Fund. Borrowers will pay all mortgage filing fees and applicable title fees.
Richfield HRA Energy Advantage Program
Center for Energy and Environment
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EXHIBIT B
Richfield Energy Advantage Program
Scope of Services
Duties and Responsibilities of Richfield Housing and Redevelopment Authority:
1. Develop program guidelines and monitor implementation.
2. Market the program to Richfield residents.
3. Recommend to CEE the content of the monthly report to be prepared by CEE and
submitted to the HRA.
4. Prepare and submit periodic reports to MHF A as required.
5. Monitor and verify all reports from CEE.
Duties and Responsibilities of CEE:
Assist the HRA to market the program to Richfield residents.
Obtain a credit report for all applicants. Verify applicant is current on all mortgage
(contract for deed) payments and property taxes.
3. Verify that applicant's Loan to Value ratio, when combined with the new loan, does not
exceed 110%.
1.
2.
4. Review description of proposed project and verify that it is an eligible improvement
under Program guidelines. Contact the HRA for final determination if an improvement
is in question.
5. Approve or deny application based on program guidelines. CEE's decision shall be
final.
6. Originate and close all loans and grants.
7. File appropriate mortgage documents for all loans as required. Filing fees for mortgage
will be paid by the borrower at time of closing.
8. Origination fees will be paid from the Program's Administrative Budget.
9. Disburse proceeds to contractor upon completion of work and receipt of 1) final invoice
or proposal, 2) final inspection report, 3) lien waiver, 4) completion certificate,S)
evidence of required permit(s).
Richfield HRA Energy Advantage Program
Center for Energy and Environment
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10. Manage loan fund and provide the HRA with monthly reports which include:
. Beginning Balance of fund
. Any additional funds received from the HRA
. # of Originations
. Total value of Originations
. Names and addresses of loan recipients
. Origination and related fees assessed to Program Budget
. Ending balance of fund
Submit other reports and information as may be required by the HRA.
Richfield HRA Energy Advantage Program
Center for Energy and Environment
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REHABILIT A TION P ARTICIP A TION AGREEMENT
Richfield Energy Advantage Program
Property Owner(s): <<Name!>> <<Name2>> (herein referred to as "owner")
Property Address: <<Address>>. Richfield. MN (herein referred to as "property")
Loan Amount: $<<Loan Amt>> (herein referred to as "Loan")
"Owner's Funds": $<<Match Funds>> (herein referred to as "owner's funds")
Date: <<Date of Mort>>
The owner will receive a deferred loan as specified above pending owner's compliance with the
guidelines of the Richfield Energy Advantage Program as described in related informational
material, this Agreement, the Program application, and the confirmation letter provided to the
owner by the Center for Energy and Environment (CEE) that is dated <<Date of Mort>>. Final
determination of eligibility rests with the Richfield HRA.
1. The owner certifies that he/she/they is/are the owner(s) of record of the property where the
funds will be used to finance repairs and/or improvements.
2. Work performed at the property shall be as stated in the contractor(s) bides) or the owner's
. materials list submitted with (or as a subsequent part of) the owner's application for the loan.
3. Any contractor(s) who perform work at the property must meet City of Richfield licensing,
building permit and building/housing code requirements.
4. If the owner is performing any work, owner understands that upon completion all work must
meet City of Richfield building permit and building/housing code requirements.
5. All projects must be completed and payment request documents provided to Center for
Energy and Environment (CEE) within 120 days from the above specified date.
6. Owners receiving a deferred loan will be required to provide owner's funds to complete the
project. The owner acknowledges that owner's funds are available and will promptly be paid
to the contractor(s) upon completion of the work.
7. The loan funds will be held in escrow by CEE until completion of the work. The funds will
be disbursed to the contractor(s) and/or owner based upon final inspection of the completed
work. The owner must submit the following items to CEE upon completion of the work. If
more than one contractor is used, there must be completed sets of the items listed below
for each contract/contractor:
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a. a completion certificate (copies provided to owner) filled in and signed by the owner and
contractor;
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REHABILITATION PARTICIPATION AGREEMENT
Richfield Energy Advantage Program
Page 2
b. a final invoice from the contractor showing the total cost for the project AND / OR for
projects being done by the owner, detailed receipts from the building materials supplier
and any subcontractors.
c. for work requiring a city permit, proof of final inspection by the City of Richfield
Inspection Department. (This is done by sending a copy of the permit signed off by the
City Inspector.)
d. evidence that the owner's funds have been paid to the contractor(s).
e. for work NOT requiring a city permit, the owner must call CEE to notify CEE of the
completion of the work. A representative of CEE will then contact the owner to arrange
an inspection of the property to verify the completion of the work.
8. The Center for Energy and Environment will provide the payment to any contractor(s) and/or
owner within 10 days of the receipt of the above items.
a. FOR PAYMENTS TO OWNER, the owner will be notified by CEE that the payment
check is ready. The owner will have to make arrangements with CEE to obtain the check
from CEE. CEE can mail these check(s) to the owner, but only if requested by the
owner to do so.
b. FOR PAYMENTS TO CONTRACTOR(S), the contractor(s) will be notified by CEE
that the payment check is ready. The contractor(s) will have to make arrangements with
CEE to obtain the check from CEE. When the check is provided, the contractor(s) will be
required to provide CEE with a lien waiver from the contractor that indicates final and
full payment for all work. Checks can be mailed to contractor(s), but ONLY if the
contractor(s) have previously provided CEE with the lien waiver.
9. The owner must notify any contractor(s) of the payment process as outlined above.
10. The owner agrees to release and hold harmless the Richfield Housing Authority, the Center
for Energy and Environment, together with their officers and employees, from and against
any and all claims, demands, injuries, damages, cost and expenses, including reasonable
attorney's fees, arising out of or relating to the use or financing of the property, limited only
to the extent that the liability or loss is attributable to the gross negligence or intentional
misconduct of one or more of the released parties.
OWNER:
OWNER:
<<N ames 1 >>
<<Names2>>
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AGENDA ITEM #
REPORT #
3B
24
.......
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JUNE 18, 2007
REPORT PREPARED By:
PAT SMITH, COMMUNITY DEVELOPMENT
MANAGER
NAME, TinE
REPORT PRESENTER:
P AT SMITH, COMMUNITY DEVELOPMENT
, MANAGER
DEPARTMENT DIRECTOR REVIEW:
NAME, TinE
REVIEWED By EXECUTIVE DIRECTOR:
.
ITEM FOR HRA CONSIDERATION:
Consideration of selling 7700 Knox Avenue to the City of Richfield.
I.
RECOMMENDED ACTION:
By Motion: Approve the attached Purchase Agreement selling the
site which contains the City's lift station at 7700 Knox Avenue to the
City of Richfield.
I II.
BACKGROUND I
On January 8, 2002 the City Council approved the Final Plat for the Best Buy
Campus in the Interchange West area. As part of the Best Buy plat, the City's lift
station at 7700 Knox Avenue was platted as Tract C, RLS No. 618 (see attached
Best Buy Campus plat).
.
The property was originally owned by Mr. Frank Dillon. Mr. Dillon had conveyed an
easement to the City for a sanitary sewage pumping station on the west 60 feet of
Tract C. This was discovered at the time of the Best Buy development. The
Housing and Redevelopment Authority (HRA) acquired title to extinguish the
interest of Mr. Dillon.
061807 - sale of 7700 Knox Ave
I III.
In 2005 the City gave a license to Metro Transit to allow them to construct a driver's
break facility at the property (see attached photo - the break facility is the building
on the right). Metro Transit cannot record the license because the land is owned by
the HRA, not the City.
BASIS OF RECOMMENDATION I
I A. POLICY I
. This Agreement is made pursuant to Minn. Stat. 465.035 and 471.64.
. Minn. Stat. 471.64 waives the public hearing requirement if the HRA
sells property to another governmental agency.
.
I B. CRITICAL ISSUES I
. The City should own the property at 7700 Knox Avenue because of
the presence of the lift station.
. Because of the size of the site and its environs, there is no
redevelopment potential for this site.
I C.
FINANCIAL I
. The purchase price for the property is one dollar.
. The City will pay closing costs.
. There are no real estate taxes due.
.
ID.
LEGAL I
. Legal counsel drafted the Purchase Agreement.
I IV. ALTERNATIVE RECOMMENDATION(S) I
. Approve the Purchase Agreement with added provisions or modifications.
. Do not approve the Purchase Agreement.
. Continue the consideration of the Purchase Agreement to a later meeting
date.
I V. ATTACHMENTS
. Purchase Agreement
. Best Buy Campus Plat
. Photograph of Lift Station and Metro Transit break facility
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. N/A
.
j[3-{
.
PURCHASE AGREEMENT
This Agreement is made as of , 2007 by and between the CITY OF
RICHFIELD, a Minnesota municipal corporation ("Buyer") and HOUSING AND
REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, a public body
corporate and politic under the laws of Minnesota ("Seller").
Recitals
A. Seller is the owner of certain real estate in the City of Richfield, County of Hennepin,
legally described as follows: Tract C, Registered Land Survey No. 618 (the "Property").
B. Seller acquired the Property as part of a redevelopment project, and it is occupied
by a municipal lift station owned and operated by Buyer.
C. Buyer desires to acquire the Property.
D. Seller deems it to be in the public interest to convey the Property to Buyer pursuant
to the terms of this Agreement.
E. This Agreement is made pursuant to Minn. Stat. ~ 465.035 and ~ 471.64.
. Terms
1. Purchase Price. The purchase price for the Property is One Dollar ($1.00), which
Buyer shall pay at closing.
2. Deed. Seller agrees to convey the Property to Buyer by quit claim deed. Seller and
Buyer agree to execute and deliver customary closing documents, including but not limited
to affidavit of seller.
3. Title. Buyer shall be responsible for reviewing the condition of title to the Property and
for resolving any title defects, if any. Buyer may refuse to accept title to the Property if
Buyer finds the condition of title to that property to be unsatisfactory in any respect.
4. ClosinQ. The closing shall occur on a date that is mutually agreeable to the parties.
5. ClosinQ Costs. Seller shall pay real estate taxes, if any, due and payable in the year of
closing and prior years. Buyer shall assume real estate taxes due and payable in the year
following closing. Seller shall pay all special assessments levied against the Property prior
to Closing. Buyer shall assume all pending special assessments. Buyer shall pay deed
tax and all other closing costs not specifically mentioned in this paragraph.
.
061807 - sale of 7700 Knox Ave
38--d-
CITY OF RICHFIELD
.
By
Its Mayor
By
Its City Manager
HOUSING AND REDEVELOMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
By
Its Chairperson
By
Its Executive Director
.
.
.
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AGENDA ITEM #
REpORT #
4
25
~
ST AFF REPORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JUNE 18, 2007
REPORT PREPARED By:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME. TInE
REPORT PRESENTER:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
DEPARTMENT DIRECTOR REVIEW:
NAME. TInE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of a proposed settlement of a Housing and Redevelopment Authority deferred
loan mortQaQe.
1.
RECOMMENDED ACTION:
By Motion: Approve a proposal made by the owner of 6221 Sheridan
Avenue for settlement of a deferred $12,995 loan in the amount of
$9,097.
I II.
BACKGROUND I
In November of 1995 the owner of 6221 Sheridan Avenue signed a Richfield
Deferred Loan Repayment Agreement. The Housing and Redevelopment Authority
(HRA) provided a deferred CDBG funded loan for home repairs in the amount of
$12,994.76. The Repayment Agreement requires the owner to live in the home for
30 years before it is forgiven. Short of the thirty years it is to be paid back due to
virtually any transaction which transfers title to another party.
The owner of this property has fallen behind in mortgage payments. The owner is
trying to sell the property to avoid foreclosure. While the property has an estimated
market value from the City Assessor of $238,000 it wasn't until the asking price was
at $226,000 that the market responded. Staff has been told that about a year ago
the owner attempted to sell the property and was asking something in the mid
061807 Deferred Loan
I III.
$260,000 range. Subsequently a realtor became involved and the house has been
listed since late January at $249,900, $237,000 and most recently at $226,000.
The owner reportedly owes approximately $225,000 to the lender.
BASIS OF RECOMMENDATION I
I A. POLICY I
. The HRA acts to protect its financial interests.
.
I B. CRITICAL ISSUES I
. Given the numbers in this situation, it is unlikely the HRA should
expect to recover the full value of the lien.
. As of the writing of this report the owner is considering letting the
property go into foreclosure.
. Between the writing of this report and the June 18 HRA meeting
additional information may become available.
I C.
FINANCIAL I
. It is in the best interest of the HRA to not have the property foreclosed
by the lender as the lender could offer the HRA nothing. (The HRA
has a subordinated position to the primary lender.)
. The initial proposal from the owner and lender was less than $.10 on
the dollar to the HRA at $1,000. Subsequently the HRA was offered
$8,000 or about $.62 on the dollar. The owner has recently agreed to
$.75 on the dollar or $9,709. The position of the lender is not known
as of this writing.
.
I D. LEGAL I
. Legal counsel has opinioned that the HRA has the sole responsibility
for agreeing to accept anything less than the full amount of the lien.
I IV. ALTERNATIVE RECOMMENDATION(S)
. Propose a different settlement amount.
I V. A TT ACHMENTS
. N/A
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. N/A
.