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082012completeagenda CITY OF RICHFIELD, MINNESOTA MONDAY, AUGUST 20, 2012 RICHFIELD MUNICIPAL CENTER 6700 PORTLAND AVENUE SPECIAL CONCURRENT HOUSING AND REDEVELOPMENT AUTHORITY/ CITY COUNCIL/PLANNING COMMISSION WORKSESSION BARTHOLOMEW ROOM 5:45 P.M. AGENDA Call to order Roll call 1. Discussion regarding Richfield housing policy (HRA Memo No. 41/Council Memo No. 96) Notes: Adjournment REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS 7:00 P.M. AGENDA Call to order Roll call 1. Approval of minutes of Regular HRA Meeting of July 16, 2012 2. HRA approval of agenda 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 on these items 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 resolution authorizing execution of amended and restated Tax Increment Pledge Agreement with City of Richfield relating to $2,985,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2012B S.R. No. 34 B. Consideration of resolution accepting monetary contributions for Community Development events and programs S.R. No. 35 Notes: 4. Presentation and consideration of accepting Richfield HRA annual tax increment district status update Staff Report No. 36 Notes: 5. Public hearing regarding resolution authorizing sale of 7326 Sheridan Avenue to Endres Custom Homes, Inc. and execution of contract for private development with Endres Custom Homes, Inc. for construction of single family home under Richfield Rediscovered Program Staff Report No. 37 Notes: 6. Consideration of request to forgive New Home second mortgage provided to Andrew and Patty Beggs, 6321 Morgan Avenue Staff Report No. 38 Notes: 7. Consideration of proposed settlement made by owner of 1709 72nd Street West for forgiveness of Housing and Urban Development Community Development Block Grant Deferred Loan Staff Report No. 39 Notes: 8. Consideration of resolutions approving 2013 proposed HRA budget and tax levy and 2012 Revised HRA budget Staff Report No. 40 Notes: 9. HRA discussion items Notes: 10. Executive Director Report Notes: 11. 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. CITY OF RICHFIELD, MINNESOTA Office of City Manager August 16, 2012 HRA Memorandum No. 41 City Council Memorandum No. 96 Housing and Redevelopment Authority Commissioners The Honorable Mayor City of Richfield and Members of the City Council Members of the City Council Subject: Housing Policy Discussion (Worksession Agenda Item No. 1) Commissioners and Council Members: On August 20, 2012 the City Council, Housing and Redevelopment Authority and the Planning Commission will be holding a joint worksession to discuss scope, process, and timing for the development and implementation of a housing policy for the City of Richfield. The following outline is intended to assist in the discussion to formulate guidance and direction for staff in the development of the housing policy. The bulleted items are merely meant to be thought-provoking and are not intended to steer the discussion or define the scope of the policy. Scope Discussion Items • Issue/Concern • Options for development of a housing policy • Discussion of existing policies • Sources of housing policies (examples) • Demographics overview • Housing policy development considerations • Scope of Vision: o Should the housing policy include rental, owner-occupied, or both o Mix of affordable and market-rate units • Based on size of building/project (less than 10 units, 25 units, greater than 50 units, etc.) • Proportion of affordable units based on number of bedrooms • Sliding scale for affordability (differing proportionate mix at 50%, 60%, 70% & 80% of AMI) • Geographical considerations • Rental and/or ownership o Rehabilitation and/or new construction • Priority for one over the other o Unit sizes • Proportion of number of bedrooms per unit o Senior housing • Type • Geographical considerations o Accessible housing • Rental and/or owner-occupied o Environmentally-friendly/sustainable o Implementation • Scoring system • Sliding-scale fees for affordable projects o Incentives/punitive actions • How do we encourage more of what we want and discourage what we don't want Next Steps/Process • Development of vision • Use of facilitator? • Outreach process • Schedule Implementation z. Re Fectfull submitted, CLatev/ . -- L evich Executive Director SLD:cak Email: Department Directors Assistant City Manager Copy: Planning Commission HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES ge,C*Ced Richfield, Minnesota Regular Meeting July 16, 2012 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 J. Quam; and David Gepner Present: HRA Members Doris Rubenstein and Debbie Goettel Absent: Staff Present: John Stark, Acting Executive Director; Karen Barton, Assistant Community Development Director; and Nancy Gibbs, City Clerk Item #1 APPROVAL OF MINUTES OF (1) REGULAR HRA MEETING OF JUNE 18, 2012 Commissioner Quam asked that a date referencing an HRA Meeting on page 3 be corrected to read March 21, 2011. M/Gepner, S/Quam to approve the amended minutes of(1) Regular HRA Meeting of June 18, 2012. Motion carried 3-0. Item #2 HRA APPROVAL OF AGENDA M/Quam, S/Gepner to approve the agenda. Motion carried 3-0. Item #3 CONSENT CALENDAR HRA Meeting -2- July 16,2012 A. Consideration of approval of contract with S.R. Stevens Excavating, Inc. for demolition of 6812-14th Avenue, 6438 Bloomington Avenue and 6315-16th Avenue S.R. No. 29 M/Gepner, S/Quam to approve the Consent Calendar. Motion carried 3-0. Item #4 CONSIDERATION OF REQUEST FOR SUBORDINATION OF HRA TRANSFORMATION LOAN AT 6415 SECOND AVENUE S.R. NO. 30 Assistant Community Development Director Barton presented Staff Report No. 30. M/Sandahl, S/Quam to approve the request for subordination of HRA Transformation Loan at 6415 Second Avenue. Motion carried 3-0. Item #5 PUBLIC HEARING TO CONSIDER SALE OF HRA PROPERTY AT 301 —77TH STREET WEST AND PURCHASE AGREEMENT TO LAMETTRY'S COLLISION, INC. S.R. NO. 31 Acting Executive Director Stark presented Staff Report No. 31. Abby Omiwade, General Manager of Candlewood Suites, stated she has concerns regarding parking spaces and noise. Richard LaMettry, owner of LaMettry's Collision, Inc., stated they will be planting canopy trees to block view from Candlewood Suites. He also stated that all repairs are serviced inside the building. Mr. LaMettry also stated he would like to discuss the parking agreement with Candlewood Suites. He would also like to make changes to current agreement due to some vague language. Tim Carter, managing partner of Richfield-Bloomington Honda, stated he supports the project. Chair Sandahl stated the HRA received a letter of support of this project from the Richfield Chamber of Commerce. M/Gepner, S/Sandahl to close public hearing. Motion carried 3-0. M/Gepner, S/Quam to approve sale of HRA property at 301 —77th Street West and purchase agreement to LaMettry's Collision, Inc. Motion carried 3-0. HRA Meeting -3- July 16,2012 Item #6 CONSIDERATION OF CONSENT TO SECOND MORTGAGE REQUEST ALLOWING LOCAL INITIATIVES SUPPORT CORPORATION TO FILE MORTGAGE AGAINST 6330 LYNDALE AVENUE S.R. NO. 32 Assistant Community Development Director Barton presented Staff Report No. 32. M/Sandahl, S/Quam to approve consent to second mortgage request allowing Local Initiatives Support Corporation to file mortgage against 6330 Lyndale Avenue. Motion carried 3-0. Item #7 CONSIDERATION OF AMENDMENT TO SUBORDINATION AND SATISFACTION POLICY S.R. NO. 33 Assistant Community Development Director Barton presented Staff Report No. 33. Commissioner Gepner asked staff to collect data on amount of subordination requests the City has and how many loans are currently on record. Assistant Community Development Director Barton responded that staff will provide that information with the next monthly memo update. M/Quam, S/Sandahl to approve amendment to Subordination and Satisfaction Policy. Motion carried 3-0. Item #8 HRA DISCUSSION ITEMS Chair Sandahl requested a copy of the HRA by-laws. Acting Executive Director Stark stated he had distributed the by-laws to the commissioners this evening. Acting Executive Director Stark stated the HRA may want to review the by-laws at the January meeting. Commissioner Quam asked about a study session regarding Rental Housing. Acting Executive Director Stark stated a memo will be provided regarding the issues to be discussed at the study session including the scope of the policy, timing, and process. Item #9 EXECUTIVE DIRECTOR REPORT Acting Executive Director Stark reported the Community Development Department hired a new Housing Specialist, Kate Aitchison. She was hired to fill the vacancy left by Michelle Lewis who left her position to enter a new career field. HRA Meeting -4- July 16,2012 Item #10 CLAIMS AND PAYROLL M/Quam, S/Sandahl that the following claims and payrolls be approved: U.S BANK 07/16/2012 Section 8 Checks: 122134-122245 $ 151,860.48 HRA Checks: 31508-31530 $ 152,233.56 TOTAL $ 304,094.04 Motion carried 3-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 7:55.m. Date Approved: August 20, 2012 Suzanne M. Sandahl Chair Nancy Gibbs John Stark City Clerk Acting Executive Director AGENDA ITEM#: 3A REPORT#: 34 =AA STAFF REPORT RICHFIELD LD HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 20, 2012 REPORT PREPARED BY: CHRIS REGIS,FINANCE MANAGER NAME,TITLE REPORT PRESENTER: CHRIS REGIS, FINANCE MANAGER NAME,TITLE REVIEWED BY DEPARTMENT DIRECTOR: ' SIG REVIEWED BY HRA EXECUTIVE DIRECTOR: ITEM FOR COUNCIL CONSIDERATION: Consideration of a resolution authorizing execution of an amended and restated Tax Increment Pledge Agreement with the City of Richfield relating to the $2,985,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2012B. I. RECOMMENDED ACTION: By Motion: Approve the attached resolution authorizing execution of an amended and restated Tax Increment Pledge Agreement with the City Richfield relating to the City's Taxable General Obligation Tax Increment Refunding Bonds, Series 2012B, in the approximate aggregate principal amount of $2,985,000. II. BACKGROUND • In 2003 the HRA and the City established the Lyndale Gateway West Tax Increment Financing District for the redevelopment of the Lyndale Gateway West area. • As part of the redevelopment of the Lyndale Gateway West area the City had agreed to finance certain public redevelopment costs to be incurred by the HRA or the City through the issuance of the City's $4,840,000 Taxable G.O. Temporary Tax Increment Bonds, Series 2003A. 0820 Pledge Agreement • Consequently, in order to provide permanent financing for the project, the City issued its $3,470,000 Taxable General Obligation Tax Increment Bonds, Series 2003C. • Subsequent to the issuance of the Series 2003C bonds, the HRA and the City entered into a pledge agreement whereby the HRA pledges tax increment revenues from the Lyndale Gateway West tax increment district to pay the principal and interest of the Series 2003C bonds which were issued by the City. • With interest rates at historical lows the City has determined that it is favorable to refund the Series 2003C bonds with the $2,985,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2012B. • With the refunding by the City of the Series 2003C bonds with the Series 2012B bonds, it is necessary to amend and restate the prior pledge agreement between the HRA and the City to reflect the new refunded bonds. • The amended and restated pledge agreement will continue to allow tax increment generated from the Lyndale Gateway West tax increment district be transferred to the City for debt service on the Series 2012B bonds. III. BASIS OF RECOMMENDATION A. POLICY • In order for tax increment revenues to be used for the payment of debt service on City issued tax increment bonds, a pledge agreement between the HRA and City is required. B. CRITICAL ISSUES • The sale of the refunding bonds at this time will allow the City and HRA to take advantage of the low interest rates and realize savings. C. FINANCIAL • It is estimated that the refinancing under the current rates would reduce the debt service costs of paying this by approximately $322,241. • This savings expressed in present value terms is approximately 10.50% of the refunded principal. The minimum savings required by Minnesota state law for a refunding is a present value savings of 3.00%. • It is planned to continue to use tax increment revenues generated from the Lyndale Gateway West Tax Increment Financing District to service the debt. • The City sold the $2,985,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2012B on August 13, 2012, with a closing date of September 6, 2012. D. LEGAL • Legal counsel has prepared the pledge agreement and the attached resolution. IV. ALTERNATIVE RECOMMENDATIONS) • The HRA may decide to either delay of decline approval of the Tax Increment Pledge Agreement. Delaying approval would negatively impact the scheduled bond sale. • Failure to approve the agreement would hinder the ability to use tax increment from the project for debt service of the G.O. TIF bonds. V. ATTACHMENTS • HRA resolution authorizing execution of an amended and restated tax increment pledge agreement with the City of Richfield relating to the City's General Obligation Tax Increment Refunding Bonds, Series 2012B, in the approximate aggregate principal amount of$2,985,000. • Pledge Agreement VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. •3tir STATE OF MINNESOTA CERTIFICATE OF TAXPAYER COUNTY OF HENNEPIN SERVICES DIVISION MANAGER I, the undersigned Taxpayer Services Division Manager of Hennepin County, Minnesota, hereby certify that an Amended and Restated Tax Increment Pledge Agreement by and between the City of Richfield, Minnesota (the "City"), and the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, dated as of September 6, 2012, relating to the City's Taxable General Obligation Tax Increment Refunding Bonds, Series 2012B, in the original aggregate principal amount of$2,985,000, has been filed in my office. WITNESS my hand and official seal this day of , 2012. Taxpayer Services Division Manager (SEAL) Hennepin County,Minnesota By Deputy 408966v1 JAE RC 145-641 3Pk- HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA RESOLUTION NO. RESOLUTION AUTHORIZING EXECUTION OF AN AMENDED AND RESTATED TAX INCREMENT PLEDGE AGREEMENT WITH THE CITY OF RICHFIELD RELATING TO THE CITY'S TAXABLE GENERAL OBLIGATION TAX INCREMENT REFUNDING BONDS, SERIES 2012B, IN THE APPROXIMATE AGGREGATE PRINCIPAL AMOUNT OF$2,985,000 WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,Minnesota (the"HRA")has established the Richfield Redevelopment Project Area(the"Project"Area), and approved a Redevelopment Plan(the"Plan")for the Project Area; and WHEREAS, the HRA and the City of Richfield, Minnesota (the "City"), have established the Lyndale Gateway West Tax Increment Financing District (the "TIF District") within the Project Area in accordance with Minnesota Statutes, Sections 469.174 to 469.1799;and WHEREAS,pursuant to authority conferred by Minnesota Statutes, Section 469.178,and Minnesota Statutes, Chapter 475, as amended, the City previously agreed to finance certain public redevelopment costs to be incurred by the HRA or the City in the Project Area (the "Project") through the issuance of general obligation bonds of the City in the principal amount of $4,840,000, designated the Taxable General Obligation Temporary Tax Increment Bonds, Series 2003A(the"Series 2003A Bonds");and WHEREAS, in order to repay the Series 2003A Bonds and provide permanent financing for the Project and to provide financing for additional redevelopment costs, the City issued its Taxable General Obligation Tax Increment Bonds, Series 2003C (the "Refunded Bonds"), in the original aggregate principal amount of$3,470,000;and WHEREAS, at the time the Refunded Bonds were issued, the City and the HRA entered into a Second Amended Tax Increment Pledge Agreement, pursuant to which the HRA agreed to pledge tax increment revenues from the TIF District to the payment of principal of and interest on the Refunded Bonds; and WHEREAS pursuant to a resolution adopted by the City Council of the City on August 13,2012,the City has determined to issue its Taxable General Obligation Tax Increment Refunding Bonds, Series 2012B (the "Refunding Bonds") on or about September 6, 2012, in the approximate aggregate principal amount of $2,985,000, and apply the proceeds of the Refunding Bonds to (i) pay the principal of and interest on the Refunded Bonds through February 1, 2014 (the "Redemption Date"), and (ii)pay the outstanding principal amount of the Refunded Bonds on the Redemption Date, pursuant to an Advance Refunding Escrow Agreement,to be dated on or after September 6, 2012,between the City and the escrow agent named therein; and WHEREAS,the HRA has determined to pledge certain tax increment revenues from the TIF District to the City for the payment of the principal of and interest on the Refunding Bonds; and 408964v1 JAE RC 145-641 WHEREAS, there has been presented to the HRA an Amended and Restated Tax Increment Pledge Agreement between the HRA and the City (the "Pledge Agreement") providing for the pledge of tax increments from the TIF District to the payment of the principal of and interest on the Refunding Bonds; NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners (the "Board") of the HRA, as follows: 1. The Chair and Executive Director of the HRA are hereby authorized to execute and deliver the Pledge Agreement substantially in the form on file with the City, providing for the pledge of tax increment derived from property in the TIF District for the payment of the principal of,premium,if any, and interest on,the Refunding Bonds. 2. This resolution shall be effective as of the date hereof. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 20th day of August,2012. Chair Attest: Executive Director 408964v1 JAE RC145-641 2 AMENDED AND RESTATED TAX INCREMENT PLEDGE AGREEMENT between CITY OF RICHFIELD,MINNESOTA and THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA THIS AGREEMENT is made and entered into on or as of the 6th day of September, 2012,by and between the City of Richfield, Minnesota (the "City") and the Housing and Redevelopment Authority in and for the City of Richfield,Minnesota(the "HRA"). WHEREAS, the HRA has established the Richfield Redevelopment Project Area (the "Project Area"), and approved a Redevelopment Plan(the"Project Plan") for the Project Area; and WHEREAS, the HRA and City have established the Lyndale Gateway West Tax Increment Financing District (the "TIE' District") within the Project Area in accordance with Minnesota Statutes, Sections 469.174 to 469.1799; and WHEREAS, pursuant to authority conferred by Minnesota Statutes, Section 469.178, and Minnesota Statutes, Chapter 475, as amended, the City previously agreed to finance certain public redevelopment costs to be incurred by the HRA or the City in the Project Area(the"Project")through the issuance of general obligation bonds of the City in the principal amount of $4,840,000, designated the Taxable General Obligation Temporary Tax Increment Bonds, Series 2003A(the"Series 2003A Bonds"); and WHEREAS, in order to repay the Series 2003A Bonds and provide permanent financing for the Project and to provide financing for additional redevelopment costs, the City issued its Taxable General Obligation Tax Increment Bonds, Series 2003C (the "Refunded Bonds"), in the original aggregate principal amount of$3,470,000; and WHEREAS,pursuant to a resolution adopted by the City Council of the City on August 13,2012, the City has provided approval for the issuance of refunding bonds to defease, redeem, and prepay the Refunded Bonds,the issuance of which refunding bonds is expected to occur on September 6,2012; and WHEREAS, the City has determined to issue its Taxable General Obligation Tax Increment Refunding Bonds, Series 2012B (the "Refunding Bonds"),in the approximate aggregate principal amount of$2,985,000, and apply proceeds of the Refunding Bonds to (i)pay the principal of and interest on the Refunded Bonds through February 1, 2014 (the "Redemption Date"), and (ii) pay the outstanding principal amount of the Refunded Bonds on the Redemption Date, pursuant to an Advance Refunding Escrow Agreement, to be dated on September 6, 2012, between the City and the escrow agent named therein; and WHEREAS, the HRA has agreed to pledge certain tax increment revenues to the City for the payment of the principal of and interest on the Refunding Bonds; and 408966v1 JAE RC145-641 1 3R'S WHEREAS, pursuant to Minnesota Statutes, Section 469.178, subdivision 2, any agreement to pledge tax increment revenues must be made by written agreement by and between the HRA and the City and must be filed with the Taxpayer Services Division Manager of Hennepin County; NOW,THEREFORE,the City and the HRA mutually agree to the following: (1) The City has issued the Refunding Bonds and will use a portion of the proceeds of the Refunding Bonds to (i) pay the principal of and interest on the Refunded Bonds through the Refunded Bonds Redemption Date; and (ii) pay the outstanding principal amount of the Refunded Bonds on the Refunded Bonds Redemption Date. (2) The HRA hereby pledges to the payment of the principal of and interest on the Refunding Bonds the tax increments derived from property in the TIF District and received by the HRA, which pledge is in an amount sufficient to pay 105% of such principal and interest due on the Refunding Bonds from time to time(the"Pledged Tax Increment"). (3) Not less than three (3) business days prior to each debt service payment date for the Refunding Bonds, there shall be transferred from the account for the TIF District to the Debt Service Fund maintained by the City for the payment of the Refunding Bonds, an amount of Pledged Tax Increment which when taken together with amounts already on deposit in such Debt Service Fund, is equal to the principal of and interest on the Refunding Bonds to become due on the subject payment date. Any Pledged Tax Increment in excess of 105% of the principal and interest due with respect to the Refunding Bonds on any payment date may be retained by the HRA in the tax increment account for the TIF District and applied to any public redevelopment costs of the Project Area in accordance with law. (4) Without regard to anything in this Agreement to the contrary, Pledged Tax Increment shall be available (at the HRA's option on a parity, superior or subordinate basis) to pay principal of and interest on both the Refunding Bonds and any other obligations issued by the City, HRA or any other public body to finance public redevelopment costs paid or incurred by the HRA in the Project Area. (5) An executed copy of this Agreement shall be filed with the Taxpayer Service Division Manager of County pursuant to the requirement contained in Minnesota Statutes, Section 469.178, subdivision 2. (The remainder of this page is intentionally left blank.) 408966v1 JAE RC145-641 2 3g, io IN WITNESS WHEREOF, the City and the HRA have caused this Agreement to be duly executed on their behalf and such signatures to be attested, as of the day and year first above written. ATTEST: CITY OF RICHFIELD,MINNESOTA By By City Manager Mayor 408966v1 JAE RC145-641 S_1 3 Pi Execution page of the HRA to the Amended and Restated Tax Increment Pledge Agreement, dated as of the date and year first written above. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By Its Chair By Its Executive Director 408966v1 JAE RC145-641 S-2 AGENDA ITEM#: 3B REPORT#: 35 MAIIIII STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 20, 2012 REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON, HOUSING SPECIALISTS NAME, TITLE REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR _ •ACTING DEPARTMENT DIRECTOR 01114417-■$1.011111.fts■,'REVIEW: r 164 A, L 11/:.,`. ' V- WV/ REVIEWED BY EXECUTIVE DIRECTO -: / ___ __■11 / _ ., 1 A__ ■ A _#And ITEM FOR BRA CONSIDERATION: Consideration of approval of resolution accepting contributions for Community Development events and programs. I. RECOMMENDED ACTION: By Motion: Approve the attached resolution allowing the acceptance of monetary support solicited for Community Development in support of the 2012 Landscaping Good Neighbor Award. II. BACKGROUND Occasionally, donations are received from various agencies, businesses and private individuals when the Community Development Department has special events or programs planned. Some of the events are annual and donations are solicited, such as for the Landscaping Good Neighbor Award. Other donations are made through programs or grants from agencies for specific areas. A list of the donations and designated programs for the first half of 2012 is attached. Minnesota Statute 465.03 requires that every acceptance of a grant or devise of real or personal property on terms prescribed by the donor be made by resolution. 08202012 Acceptance of LGNA Donations.doc III. BASIS OF RECOMMENDATION A. POLICY • Minnesota Statute 465.03 requires that every acceptance of a grant or devise of real or personal property on terms prescribed by the donor be made by resolution. • The Administrative Services Department issued a memo on November 9, 2004 requiring that all grants and restricted donations to departments be received by resolution and passed in accordance with Minnesota Statute 465.03. B. CRITICAL TIMING ISSUES • Donations have been received and applied to the designated areas as indicated by the donors. C. FINANCIAL • Financial donations have been deposited in the funds supporting the designated programs. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S) • Monetary donations would have to be returned to the agency/business/individuals if the Housing and Redevelopment Authority (HRA) does not adopt the resolution. V. ATTACHMENTS • Resolution approving acceptance of donations. • List of donations and specified areas for the donation to be applied. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A 34' i RESOLUTION NO. RESOLUTION AUTHORIZING RICHFIELD COMMUNITY DEVELOPMENT DEPARTMENT TO ACCEPT DONATIONS FROM THE LISTED BUSINESSES FOR DESIGNATED USES WHEREAS, the Community Development Department, received checks and gift cards from the following for the 2012 Landscaping Good Neighbor Award; Richfield Bloomington Credit Union Linder's Garden Center Wagner's Greenhouses and, WHEREAS, Minnesota Statute requires every acceptance of a grant or devise of real or personal property on terms prescribed by the donor be made by resolution; and, WHEREAS, the donated funds will be used towards the designated events sponsored by Richfield Community Development Department. NOW, THEREFORE, BE IT RESOLVED that the Director of Community Development will accept and distribute the donations as specified. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 20th day of August 2012. Suzanne M. Sandahl, Chairperson ATTEST: Doris Rubenstein, Secretary 30- Checks or Gift Cards Received 2012 Business Name Amount of Donation Designation $180.00 Richfield/Bloomington Landscaping Good Credit Union (RBCU) (to be used for ten $10 Neighbor Award gift cards) Cinder's $180.00 Landscaping Good (six $30 gift cards) Neighbor Award Wagner's Greenhouses $150.00 Landscaping Good (six $25 gift cards) Neighbor Award Total: $510.00 AGENDA ITEM#: 4 REPORT#: 36 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 20, 2012 REPORT PREPARED BY: MYRT LINK, COMMUNITY DEVELOPMENT ACCOUNTANT NAME, TITLE REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTO• /' ACTING DEPARTMENT DIRECTOR �� I / 116-„ REVIEW: ltig•li AA�� `AL A21 � Vir REVIEWED BY EXECUTIVE DIRECTOR f �® /_4_,,,,amprogr ITEM FOR HRA CONSIDERATION: Consideration of the Richfield Housing and Redevelopment Authority Tax Increment District Status Update. I. RECOMMENDED ACTION: By Motion: Accept the Richfield Housing and Redevelopment Authority Annual Tax Increment District Status Update. II. BACKGROUND The Tax Increment District Status Update (TIF Status Update) is presented to the Richfield Housing and Redevelopment Authority (HRA) annually for review. This year, the TIF Status Update shows that the HRA is able to meet all of its Pay-As- You-Go Note and General Obligation Tax Increment Bond obligations. Rebecca Kurtz of Ehlers & Associates will provide further information regarding Richfield's TIF Districts and their current status. 08202012 TIF Status Update III. BASIS OF RECOMMENDATION A. POLICY • The annual TIF Status Update is provided to the HRA to summarize tax increment financial activity and comment on the status of the HRA's ability to meet its tax increment obligations. B. CRITICAL TIMING ISSUES • The TIF Status Update indicates the HRA is able to meet all of its current and future tax increment obligations. C. FINANCIAL • See detailed TIF Status Update attached. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATIONS) • Reject the conclusions made in the Tax Increment District Status Update. V. ATTACHMENTS • Tax Increment District Status Update • Map VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Rebecca Kurtz, Ehlers & Associates, Inc. Tax Increment Financing District Summary Conclusion The Richfield Housing and Redevelopment Authority (HRA)will be able to meet all of its tax increment obligations. Richfield Redevelopment Project Area The Richfield Redevelopment Project area currently contains 9 tax increment financing districts: • Interchange-Lyndale-Nicollet(ILN) • Interchange • Urban Village • Gramercy • Interchange West/Lyndale Gateway • City Bella • Lyndale Gateway West • Cedar Corridor • 2010— 1 Housing In 2005, the boundaries of the Richfield Redevelopment Project Area were expanded and set to be the same as the City's boundary in order to expand housing program service areas and provide a wider area of tax increment spending authority. The HRA has two types of obligations associated with these districts. The first type of obligation is the Pay As You Go Revenue Note. All of these Notes pledge to the Note Holder a certain percentage of the available tax increment from the specific district. Less tax increment receipts result in lower Pay As You Go payments. To the extent that the increment is not available to make the payment, the HRA is not required to meet the obligation. Current projections show that the HRA will be able to meet all of its Pay As You Go Revenue Note obligations. The second type of obligation that the HRA has is Tax Increment Bonds. Currently, there are bonds outstanding in the ILN, Interchange West(Best Buy), and Lyndale Gateway West (Kensington Park) districts. Property tax law changes in 2002 -- with the last phase-in in 2004 -- resulted in much lower increment receipts than in the past. These changes prompted the HRA to start reserving cash to cover bond debt service. Also,the law provided the ability for the HRA to share tax increment (deficit pooling) from all tax increment districts to help pay General Obligation Tax Increment Bond obligations. In 2004, the HRA undertook modifications to certain tax increment district plans to address shortfalls in the ILN District increment. By using deficit pooling,projections show that the HRA will be able to meet all of its General Obligation Tax Increment Bond obligations. 2 Assumptions All projections are based on the most conservative assumptions. Cash balances are as of December 31, 2011. The calculations do not include any interest on invested cash or inflation on property market values with a few exceptions: The exceptions to the assumptions follow: • Interchange West uses a 1.725% market value inflation • Urban Village uses a 2% market value inflation • Lyndale Gateway West uses a 1% inflation rate Although Lyndale Gateway (Richfield Senior Housing) used a 3% market value inflation assumption at time of closing, a 0%market value inflation rate is being used in order to be conservative. 3 Interstate-Lyndale-Nicollet (ILN) TIF District Update The ILN District is a commercial redevelopment project comprised of the Shops at Lyndale and the Meridian Crossings redevelopments located at 1-494 and Lyndale Ave. First Year of Increment: 1987 Decertification Date: 2012 Outstanding Obligations: • $2,039,157 Pay-as-you-go Note for the Shops at Lyndale, Phase I • $1,368,170 Pay-as-you-go Note for the Shops at Lyndale, Phase II • $2,908,666 Pay-as-you-go Note for Meridian Crossings, Phase I • $2,453,702 Pay-as-you-go Note for Meridian Crossings, Phase II Final payments were made February 1, 2012 for the following bonds: • General Obligation Tax Increment Bonds of 1996, which were refunded with the $2,460,000 Taxable General Obligation Refunding Bonds, Series 2002B. (These formerly were the pooled bonds of the LHN and ILN, and they are currently known as the ILN Bonds) • $1,630,000 General Obligation Tax Increment Bonds, Series 2000, which utilizes the Candlewood Hotel increment to assist the Lyndale Gateway West District(Kensington Park). The ILN District has a cash balance of$365,709. The cash balance was used to pay the ILN Bonds. The TIF Plan Modification undertaken in 2004 to address deficit pooling will allow increment from the Interchange TIF District to be pooled to the ILN District, if needed for debt service on the Bonds. Deficit pooling was not needed in 2011. Conclusions: The HRA will be able to meet all of its debt obligations. The ILN TIF District is required to be decertified by December 31, 2012, and the properties will be placed on the tax roll at full value. Prior to December 31, 2012, the Council will be requested to adopt a resolution to decertify the TIF District. The final four Pay-as-you-go Note payments will be on February 1, 2013. After those payments, the Funds will be closed. Under current legislation, to the extent excess increment is available, it will be returned to Hennepin County and redistributed to the City, County and School District. The funds returned will be unrestricted in their use. 4 Interchange TIF District Update The Interchange District is a commercial redevelopment project comprised of the Dick's Sporting Goods store located along 1-494. In 2004, Galyan's Trading Company became a wholly owned subsidiary of Dick's Sporting Goods. First Year of Increment: 1998 Estimated Decertification Date: 2023 Outstanding Obligations: • $1,747,045 Pay-as-you-go Revenue Note The Interchange District has a cash balance of$147,641. On July 25, 2011 the HRA adopted a Spending Plan, as authorized by the 2010 Jobs Bill which was extended by the Legislature in 2011, to allow using the cash balance to provide assistance to the redevelopment of the former Lyndale Garden Center site. The Council adopted the Spending Plan on August 9, 2011. Under the Spending Plan, the cash balance from the Interchange District may be used for acquisition and redevelopment of the Lyndale Garden Center, located at 6400 Lyndale Avenue South. Conclusions: The HRA will be able to meet its debt obligation. 5 Urban Village TIF District Update The Urban Village TIF District is a mixed-use redevelopment project that began generating tax increment in 2000. Tax increment revenue is pledged to the project to assist with property acquisition and excess site development expenses. Fifteen percent(15%) of the annual tax increment is contributed to the Housing and Redevelopment Fund for use on TIF eligible expenses. First Year of Increment: 2000 Estimated Decertification Date: 2025 Outstanding Obligations: • $2,500,000 Pay-as-you-go Tax Increment Revenue Note • $2,388,414 Pay-as-you-go Tax Increment Revenue Note The TIF Bond has a reset date. The Tax Exempt Bond rate was reset in February 2011 from 4.98% to its current rate of 2.77%. The Taxable Note will be reset February 2016. The Urban Village District has a cash balance of($42,169). Conclusions: The HRA will be able to meet all of its debt obligations. Although the cash balance was negative at the end of 2011, projections show that the District will have a positive cash balance in the future. The negative balance is due to the timing difference from when obligations are paid and tax increment revenue is collected. 6 Gramercy TIF District Update The Gramercy TIF District is a redevelopment project that began generating tax increment in 2002. The district includes the Gramercy Park Senior Housing Cooperative. Tax increment revenue is pledged to the project to assist with property acquisition expenses. In 2002, a portion of the Gramercy site area was eliminated from the TIF District and incorporated into the City Bella project. Fifteen percent (15%) of the annual tax increment is contributed to the Housing and Redevelopment Fund for use on TIF eligible expenses. First Year of Increment: 2002 Estimated Decertification Date: 2025 Outstanding Obligations: • $1,977,000 Pay-as-you-go Tax Increment Revenue Note The Gramercy District has a cash balance of$111,957. Conclusions: The HRA will be able to meet all of its debt obligations. 7 Interchange West / Lyndale Gateway TIF District Update The Interchange West/Lyndale Gateway TIF District has two components. A portion of the Lyndale Gateway District was eliminated in 2002 and incorporated into the new Lyndale Gateway West TIF District for the Cornerstone/Kensington Park Project. Interchange West Component The Interchange West component of the Interchange West/Lyndale Gateway District is comprised of the Best Buy Corporate Headquarters located on the intersection of I-494 and Penn Ave. Tax increments are pledged to the Best Buy project to assist with site assembly activities. A set dollar amount of funds from the Interchange West portion of the District will be used to fund the Housing and Redevelopment Fund and administrative costs. First Year of Increment: 2004 Estimated Decertification Date: 2025 Outstanding Obligations: • $22,190,195 Pay-as-you-go Tax Increment Revenue Note • $6,355,000 Tax Exempt General Obligation Tax Increment Refunding Bonds, Series 2010B. (These bonds provided for an advance refunding of the $8,350,000 Tax Exempt General Obligation Tax Increment Bonds of 2001, for a present value savings of $620,169.) The Interchange West Component has a cash balance of$538,150. Conclusions: The HRA will be able to meet all of its debt obligations. Lyndale Gateway Component The Lyndale Gateway component is comprised of the Richfield Senior Housing project(Main Street Village) and the Minnstar Builders, Inc. project (Casteel Place Townhouses). Tax increment revenue is pledged to the project to assist with site assembly expenses. In 2002,the HRA loaned Richfield Senior Housing, Inc. $338,251.76 to assist with an unexpected condemnation award in acquiring a portion of the redevelopment property. The loan was paid off by the developer in December, 2004. For the Minnstar Builders project, Casteel Place Townhomes,the Contract for Private Redevelopment included a"look back"provision that required a review of the developer's costs. 8 To the extent that certain costs would go up or down under the estimate,the associated Pay-as- you-go Revenue Note would be reduced by a like amount. The"look back" provision analysis was completed in 2002, which called for a reduction in the Pay-as-you-go Revenue Note from $100,000 to $19,985.23. The cost savings of this tax increment was then used as additional gap funding for the Cornerstone/Kensington Park redevelopment project in the Lyndale Gateway West District. The last increment payment to Minnstar Builders was February 1, 2005. First Year of Increment: 2000 Estimated Decertification Date: 2025 Outstanding Obligations: • $3,300,000 Pay-as-you-go Tax Increment Revenue Note to Richfield Senior Housing The Lyndale Gateway Component has a cash balance of$739,496. On July 25, 2011 the HRA adopted a Spending Plan, as authorized by the 2010 Jobs Bill which was extended by the Legislature in 2011, to allow using the cash balance to provide assistance to the redevelopment of the former Lyndale Garden Center site. The Council adopted the Spending Plan on August 9, 2011. Under the Spending Plan, the cash balance from the Interchange District may be used for acquisition and redevelopment of the Lyndale Garden Center, located at 6400 Lyndale Avenue South. Conclusions: The HRA will be able to meet all of its debt obligations. 9 City Bella TIF District Update The City Bella project is a redevelopment district consisting of a housing project with a retail component located on Lyndale Ave. and 66th Street. Tax increment revenue is pledged to the project to assist with property acquisition and site improvement expenses. After the $450,000 loan from the Development Account is paid in full, 15% of the annual tax increment is contributed to the Housing and Redevelopment Fund for use on TIF eligible expenses. In 2002, a portion of the Gramercy TIF District was eliminated and incorporated into the City Bella Project. The City Bella Project has a$450,000 loan from the Development Account to pay for land owned by the HRA. This loan will be paid by using the 15% Housing and Redevelopment Fund. First Year of Increment: 2006 Estimated Decertification Date: 2030 Outstanding Obligations: • $8,473,470 Pay-as-you-go Tax Increment Revenue Note The City Bella District has a cash balance of$212,566. Conclusions: The HRA will be able to meet its debt obligation. 10 Lyndale Gateway West TIF District Update The Lyndale Gateway West TIF District is comprised of the Cornerstone (Kensington Park) mixed-use redevelopment project located on Lyndale Ave. Tax increment revenue is pledged to the project to assist with site assembly expenses. A portion of Lyndale Gateway District was eliminated in 2002 and incorporated into the Lyndale Gateway West TIF District for the Cornerstone Project. First Year of Increment: 2006 Estimated Decertification Date: 2029 Outstanding Obligations: • $2,970,000 Taxable General Obligation Tax Increment Refunding Bonds, Series 2012B. (These bonds provided for an advance refunding of the $3,470,000 Taxable General Obligation Tax Increment Bonds, Series 2003, for a present value savings of$319,417.) In addition, the $1,630,000 General Obligation Tax Increment Bonds of 2000,which utilized the Candlewood Hotel increment, helped provide a$1,100,000 loan from the ILN District. The original intent was that $600,000 of the loan would be paid back from tax increment and the developer would pay the balance of$500,000 when the developer refinanced the development or in 2012, which ever occurred first. In addition,the interest on the total $1,100,000 was to be paid back from tax increment. Under the current circumstances, tax increment will be used to pay the $1,100,000 loan and interest. Tax increment from the Minnstar Builders townhouse project in the Lyndale Gateway District is also being used to pay obligations related to the Cornerstone project. The Lyndale Gateway West District has a cash balance of($225,992). Conclusions: A deficit is projected beginning in 2017. This is due in large part because of legislative changes in 2010 and the lower market values due to the economy. Although the cash balance was negative at the end of 2011,projections show that the District will have a positive cash balance in the future. The negative balance is due to the timing difference from when obligations are paid and tax increment revenue is collected. 11 Cedar Corridor TIF District Update The Cedar Corridor TIF District is a redevelopment district comprised of the commercial/retail redevelopment in the Airport Noise Impact Area. This area is located along Cedar Ave. and 66th Street. This District was established in 2006 using Special Legislation from the Laws of Minnesota 2005, Chapter 152, Article 2, Section 25. First Year of Increment: 2008 Estimated Decertification Date: 2033 Outstanding Obligations: None at this time The Cedar Corridor District has a cash balance of$6,267. Conclusions: The District currently does not have any financial obligations. 12 2010-1 Housing TIF District Update The 2010-1 Housing TIF District is a housing district comprised of the former Woodlake Plaza Shopping Center site. The District includes 2 parcels owned by the developer and the HRA sold an additional parcel to the developer. The apartment complex will contain 94 units of rental housing, including 19 units that will be affordable to families at or below 505 of the area median income for Hennepin County, as determined annually by the Minnesota Housing Finance Agency. These units will remain affordable for the term of the tax increment. First Year of Increment: 2014 Estimated Decertification Date: 2034 Approved Obligations: The HRA has entered into a Development Agreement to issue the following obligations after the developer submits documentation of qualified expenses and complies with the requirements in the Agreement. • $822,000 Pay-as-you-go Tax Increment Revenue Note A • $85,000 HRA Property Reimbursement Note • $500,000 Pay-as-you-go Tax Increment Revenue Note B The 2010-1 Housing District has a cash balance of$0. 13' Decertified Tax Increment Financing Districts The HRA has decertified five TIF Districts: • Pre-1999 Richfield Rediscovered TIF District (a scattered site redevelopment district) was closed as of December 31, 2010. • Post-1999 Richfield Rediscovered TIF District (a scattered site redevelopment district) was closed as of December 31, 2010. • Lyndale-Hub-Nicollet(LHN) District (a redevelopment district) was closed as of December 31, 2002. • Cedar Avenue Business Area (CABA) District (an economic development district) ended in 1996. All of the accounting transactions to close the District were completed by December 31, 2000. • Penn Avenue and Sixty-Sixth Street(PASSS) District (a redevelopment district) was established in 1989 and terminated in 1996 due to a lack of feasible redevelopment opportunities. 14 Established / Non-Certified Tax Increment Financing Districts Housing Tax Increment Financing District 2009-1 (a housing district) on the Candlewood Outlot, was established to facilitate the development of an accessible, affordable, 51 unit housing project for very low income (30% AMI) seniors age 62 or older. The 1.13 acre site is located at 301 77th Street West, also known as the vacant Candlewood Outlot. The site was purchased by the HRA in 1998 and since that time has been vacant. A public hearing was held and the Council adopted a resolution to establish the TIF District; however, because the development did not move forward this District has not been certified. To complete the process, the HRA would need to request certification of the TIF District. This TIF District could be used to provide assistance for any low- to moderate income housing development, which meets the income requirements for the TIF assistance. Housing Tax Increment Financing District 2009-2(a housing district) on the 0.94 acre, south portion of the former City garage site was created to facilitate the development of a 15 unit project for persons with physical disabilities to live independently in the community. A public hearing was held, but the Council has not adopted the TIF District. To complete the process, the Council would need to adopt a resolution establishing the TIF District and certify the District. This TIF District could be used to provide assistance for any low-to moderate income housing development, which meets the income requirements for the TIF assistance. Lyndale Gardens Tax Increment Financing District (a redevelopment district) on the former Lyndale Garden Center site was created to facilitate the development of a multi-phase, mixed use redevelopment. Phase I will include rehabilitation of the garden center building. It is anticipated that the commercial space will contain several uses, including an anchor tenant, office space, retail and a community space. Subsequent phases will include a mixture of market rate and affordable housing units. The HRA is in the process of completing the Request for Certification. 15 Housing and Redevelopment Fund The Housing and Redevelopment Fund is a revenue source comprised of tax increment from the Gramercy, Urban Village, Interchange West/Lyndale Gateway, and City Bella TIF Districts. The purpose of the Housing and Redevelopment Fund is to fund a variety of housing needs for the community, including but not limited to, new construction of single-family homes and town homes; single-family home renovation and rehabilitation; and apartment rehabilitation. Currently, a portion of the tax increment revenue from the Gramercy, Urban Village and Lyndale Gateway/Interchange West TIF District are being transferred to the Housing and Redevelopment Fund. The Housing and Redevelopment Fund is used to support the New Home Program, Transformation Housing Program(a deferred loan program), the Kids at Home Program, and the RR Loan Program. 16 RICHFIELD REDEVELOPMENT PROJECT AREA BOUNDARY 9E11. 1 . Ez.----------7 , — a mo .....—..- zz MM..—7 7..-- .--ill"— mmlimmilan ----1,_!WH.T-1!,...-1 v. ' Imintilii:ffi Fri iii:ML,. 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' - - Lli Pi‘ PIP i ES r'-' ■ :: M2 7-,=----1------1 , : 1,_ 7_ , -- a Ail"2 q-J 0 , .,.. ...... I - ,C' 1111 9 1 I III- I , .• IN PC:II 7[1[:1— ELFLE7 .......----1° r C) 57 -411 .,° .....LI E:11--" T;i pm ,,,, 7- _ _ - --- - ■ Legend TIF DISTRICTS: UNCERTIFIED HOUSING TIF DISTRICTS: 1- Interchange-Lyndale-Nicollet(ILN) 6-City Bella ori■Richfield Redevelopment Project area boundary A- District 2009-1 2-Interchange 7-Lyndale Gateway West C=I TIF Districts B-District 2009-2 3-Urban Village 8-Cedar Corridor 1=1 Uncertified TIF District 4-Gramercy 9-Housing District 2010-1(Lyndale Plaza) UNCERTIFIED TIF DISTRICT: 4A 5-Interchange West/Lyndale Gateway Uncertified Housing TIF Districts C-Lyndale Garden TIF District ,. N Algust 2012 AGENDA ITEM#: 5 REPORT#: 37 =Ad STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 20, 2012 REPORT PREPARED BY: KATE AITCHISON/JULIE URBAN, HOUSING SPECIALIST NAME, TITLE REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR I AME TITLE ACTING DEPARTMENT DIRECTOR A' �� itri �i ��t �� ice-- �� f/ REVIEW: ,10 44FAO'At Ai _02 �, REVIEWED BY EXECUTIVE DIRECTOR: /v r. y r ! ITEM FOR HRA CONSIDERATION: Public hearing and consideration of a resolution authorizing the sale of 7326 Sheridan Avenue to Endres Custom Homes, Inc. and a Contract for Private Development with Endres Custom Homes, Inc. for the construction of a single family home under the Richfield Rediscovered Program. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: 1. Approve a resolution authorizing the sale of 7326 Sheridan Avenue to Endres Custom Homes, Inc.; and 2. Authorize execution of a Contract for Private Development with Endres Custom Homes, Inc. for the development of a single family home under the Richfield Rediscovered Program. II. BACKGROUND The Housing and Redevelopment Authority (HRA) purchased 7326 Sheridan Avenue and demolished the house in 2010. Endres Custom Homes, Inc. (Builder) has submitted an application to purchase the lot and construct a new home under the Richfield Rediscovered Program. The Builder has entered into a Purchase Agreement with an end-buyer who will reside in the home upon completion. 08202012 RR Contract 7326 Sheridan (Endres)version 2.doc The proposed new house meets and exceeds the Richfield Rediscovered Program requirements. The new two-story home will have 1,706 square feet, three bedrooms, two-and-a-half baths and an attached, two-stall garage. The home will have an estimated end-value of$265,000. Construction is expected to begin once a building permit is approved and will be completed sometime in late fall. III. BASIS OF RECOMMENDATION A. POLICY • The proposed project meets the objectives of the Richfield Rediscovered Program: o Provides new, higher valued housing. o Alleviates a shortage of housing choice for families. o Facilitates the HRA's "Market Rate Initiatives" by providing a three-bedroom, owner-occupied house designed for a family. • The project meets the Housing Design and Site Development Criteria, as defined in Exhibit B of the Contract for Private Redevelopment. B. CRITICAL ISSUES • Per the Contract for Private Development, the house construction must be completed by December 31, 2012. The Builder anticipates applying for a building permit shortly after HRA approval. Closing on the lot will occur once a building permit is ready to be issued and is required to occur no later than October 20, 2012. • The existing boulevard tree will be preserved. A tree protection plan will be required to protect the health of the tree during construction. C. FINANCIAL • The appraised value of the lot is $56,500. • The HRA acquired the property in 2010 for $111,000 and razed the existing house. • Under the terms of the Contract the $56,500 will be due at closing. • Under the terms of the Contract the Builder must submit a $10,000 cash escrow to be held until construction is completed as provided in the Contract. D. LEGAL • The HRA Attorney has reviewed the terms of the Contract for Private Redevelopment. • Notice of the public hearing was published in the Sun Current on August 9, 2012. IV. ALTERNATIVE RECOMMENDATIONS) • Do not execute the Contract for Private Development. • Amend the Contract for Private Development and direct staff to work with the Builder to revise the proposal. V. ATTACHMENTS • Resolution • Photo of 7326 Sheridan Avenue lot • Building Plans/Elevations • Site/Landscape Plan • Contract for Private Development VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Dustin Endres, Endres Custom Homes l�I V HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 7326 SHERIDAN TO ENDRES CUSTOM HOMES, INC WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in furtherance of the Richfield Rediscovered Program adopted by the HRA, said real property being described as: Address: 7326 Sheridan Avenue Legal: Lot 5, Block 4, Penn Lake Terrace 1st Addition, Hennepin County, Minnesota WHEREAS, the HRA is authorized to sell real property within its area of operation after a public hearing; and WHEREAS, the purchaser of the described property has been identified as Endres Custom Homes, Inc., and WHEREAS, a Contract for Private Development has been prepared, and the sale price of 7326 Sheridan Avenue is $56,500.00 with performance security in the amount of $10,000; and WHEREAS, a public hearing has been held after proper public notice. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota: 1. A public hearing has been held and 7326 Sheridan Avenue is authorized to be sold for $56,500.00 to Endres Custom Homes, Inc.; and 2. The Chairperson and Executive Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sale to the Builder. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 20th day of August, 2012. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary 7326 Sheridan Avenue — Lot and adjacent properties ti a t y r ' ° Ya w 4\ 'M � - 7 2:44„. *4 'i:'''''' 4"611114,,, .:11,;,::,1 4 ,: , � ` I 4.1_, id 1 Qy • SIZZ-IZZ-ZT9 �jw SgOdeauul�y PUSS NW'Aa„enwale AeM Puod Rona 969SI *4 - f S any 4�iT £SOi� iu o L 1,1*--:Zp �ue}}il 'aa�od a a = 31VO A9 NOLdINOSNO ON :311I1133HS •NOLdtNOS3a J.D3CONd •DUI'sawoH wo;sno saJpu3 o — N ,n co 4 -<V--05: 4-d- -1:1--S- CD o ce C oCD U O U O �- O O W> O U _i J J J > W > O 0 W W J � o J Z > > Q3 0 J J Z m L, H m Z Q m O g U W „L-,8Z U • b/C 9-. 18 3/4" I - ..8/6 L-.8 ,>1< >I N.8/6 6-,6 n >t< >--fl, „Z/I. 6-.8 >� —L, ? , , , , , ILIIIiIF-1 z J L T LL 1 QJ F- U az > C —4 aA - C LLI GJ s w o F H 1, U. Z' 2 0w C 1 - 2 LL ( C 1, .b,i- — L aW 71- i 3 / — . , ( D 4D 4 D 4 , ■ D D . • - D ( a 4 U NW 'siiodeauu!W STZZ-TZZ-ZT9 '` bZTSS NW'A20lA elddV ✓` S any 441 i £SO'b AQM Prod'HBO 069ST N al E /4 Iri ZO /(uel}Il '.1a4-10d a a = I 31V0 A9 NOL DI7S3O 'ON :31J.11.133HS :NOUdINJS3O 173106d 'DU/'sawoH WOasnD saJpu3 0 (I y 14 w 0 g co L ' 1 1 ii ,I {-L CN ,e, Or N. • 6 1 _ IIII- N – I t` Z 0 I- Q w LLI o J b (1 1 W n FCf) i co = ¢-J CD a � dZ� Q2 ■. .■ 04D ,1 --- ..,_ , I, „ „ „ „ „ lit _ u d . _ er \ ° g . ,__ r w I C0 • 6) ❑ M • — — 1 1 1\\\ — r \\\ (c.,:a° 1 , A afri N1 =cn Fp▪11 ▪m / mr- Y 111:1 .E // O Z J y N co o m II 9 0 U r (u7 1 ❑ m = n v Endres Custom Homes,Inc. In OJ PROJECT DESCRIPTION: SHEET TITLE: NO. DESCRIPTION BY DATE I m N li Porter,Tiffany 02 (`' (A y rn ° i'!1 15690 Duck Pond Way 4053 11th Ave S I f N ^Apple Valley,1 MN 55124 Minneapolis, MN /// 612-221-2215 \il$)1 • A n n 1 RI 1111 ■I■ 411, •E ..,_ Nil N Ern . E. E. a 73 all 11111 ,m o , 1— —1 _ _ i co -- a m -- I _ OD ._ iIIOOiiIO _6 Z= m� — co--1 U I 0 RI IA n p Endres Custom Homes,Inc. PROJECT DESCRIPTION: SHEET TITLE: NO. DESCRIPTION BY DATE 1 rrri 11 Porter,Tiffany 02 Ci ,p m m° 4053 11th Ave S Is-: 15690 Duck Pond Way /f Apple Valley,MN 55124 j 612-221-2215 P Minnea olis, MN c1 24' :. 10' • 14' : - 7'--'1 STEEL WINDOW WELL o 3 PLV 2z10 TTED BEAM POC O 8 T x/ L7\.n n LAREDT 1 . r—— --I `r EGRESS 1 ' A • • I I I w� ce I I `° . I I I : r L.`• - 17 ANCHOR BOLTS L -' 1 ./.1 EVERY 6'(TYPICAL) FOUNDATION WALLS PER FDN CONTR )' ENGINEERING le FLOOR TRUSS I 16'Xe'(TYPICAL) 24'O.C.PER SPECS -- CONCRETE FTG e N N .. I UNFINISHED BASEMENT • s • I 3 1/2"CONCRETE FLR 7 / 6 MIL POLY VAPOR BARRIOR W/12"LAP 1, 4"CRUSHED ROCK • • UNEXCAVATED , I 99 cN e.czs iiFL R TO FACE ML F /-2 PLY 17 7/6'ML FLUSH W 19'-6"x 20'-2" R.I.Bath N rc; I E B-5 x4-11 I'. IL1 0 UP JHI fIR OR4N� YvLLE£F. OPEN R=IL —r". I .- 0 R-IOTHERMAX 1 ruxR"cE o.... @ALL END,WALLS—'Ce L = I ' I Cb e-0CH R-6 M IV FLOOR TRUSS 'A 6o pp rvE R0S EZrR 24.0.C.PER MNFR SPECS r W tJ V.T.G.VN ROOF I I WKIERMIIER A A CLEAFIcr �. 1 , �, I ,o �j O, 1 0OPLY 2z 12 TREATED —4-44- 666 TREATED POST 1' 12.446'PIER FTG BASE FLARED TO 16' 7' —17' : 24' : "I BASEMENT LIVING AREA A4SCALE:1/4'=1'V 897 sq ft �Z VI PROJECT DESCRIPTION: SHEET TITLE: NO. DESCRIPTION BY DATE ,/7 = a \ D Endres Custom Homes,Inc. Porter, Tiffany 02 Ui 71 m N IT1 15690 Duck Pond Way 4053 11th Ave S Apple Valley,MN 55124 Minneapolis, MN 612-221-2215 P 15 0 23'-91 2" 9'-91/2' 14' 3-1,/P Y-4112' - - r ,I r Oxus. PLYSYS - --- -_--- M.M, 1rtY2x6ue , TRUSS NOR TO SAEC CLEW SPAN TYPESE ` 1 Ea."R1 j*_V ATREATEIWO POST I®l s'S s DE% COVERED PORCH al Mry N„ 13'-6'x 5%V g CE 26sssn bsuw 2as6s. 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Porter, Tiffany 02 01 ::I m ° "' 4053 11th Ave S F'' ;15690 Duck Pond Way N Apple Valley,MN 55124 Minneapolis, MN 1 612-221-2215 • • 24' f 10' 14' 5,_____T_____5' 4'—>',---3'--..-3' 4' ax Oa N t W -Z ®I ,. Een,a MASTER BATH G ,I._ 4•-n•,r-ir _ I ,p Oi 3\ E ; MESH wsasx 4.., r anrza � EGRESS 7.. ri ROOF TRUSS 24.O.C. 1 �;1 a `` PER MNFR SPECS W .w..c. _ N A " Y 1. Sham/ MASTER BDRM 13'-8"x 12'-2" ? a Ws* P.w az b ' _wa" LAUNDRY --- i I 43 1 to 03 y Lu a on R y I®I N " _ 1111111 z Y S.w.M.m e \._ ._--cam::�_v-=sue=1 0 i ALL EXTERIOR WALLS 1. BEDROOM LPSMARTSIDE SIDING \ BUILDING ENVELOPE - 10'-3"X 10'-7" - 7X616'OSB O BREATHING j I 2X61F.G.B R•19 F.G.BAIT ROOF TRUSS 24'O.C. - GYPSUM WALLBOARD 'W PER MNFR SPECS # LATEX PAINT V.R _ W j A - BEDROOM U ✓ . i 10-0"x 11-0" E" _n. 7 _-9 N o Na .OSSSx 1.11/2'.7, EGRESS ,4, 3. ........ 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' s (( > |[ j| �\} ( / � ) | ) { 1 ) ' g} g I' < II ) E./ ° / \ / / 0 § « / 0 o J 0 cc / / § / | e | . � \ :4 CONTRACT FOR PRIVATE DEVELOPMENT Between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA and Endres Custom Homes, Inc. for property located at 7326 Sheridan Avenue South This Instrument Drafted by: The Housing and Redevelopment Authority In and for the City of Richfield 6700 Portland Avenue South Richfield, Minnesota 55423 Telephone: (612)861-9760 401253v6 CBR RC125-65 CONTRACT FOR PRIVATE DEVELOPMENT THIS AGREEMENT, made and entered into as of this day of ,2012, by and between 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, having its principal office at 6700 Portland Avenue, Richfield, Minnesota (HRA) and Endres Custom Homes, Inc. (Builder). WITNESSETH: WHEREAS, the City of Richfield (City) and the HRA have previously created and established a Redevelopment Project (Project) pursuant to the authority granted in Minnesota Statutes, Sections 469.001 through 469.047 (collectively,the Act);and WHEREAS, pursuant to the Act, the City and the HRA have previously adopted a redevelopment plan for the Project(Redevelopment Plan); and WHEREAS, in order to achieve the objectives of the Redevelopment Plan and particularly to make specified land in the Project available for development by private enterprise for and in accordance with the Redevelopment Plan, the HRA has determined to provide substantial aid and assistance to finance development costs in the Project; and WHEREAS, the Builder has proposed a development as hereinafter defined within the Project which the HRA has determined will promote and carry out the objectives for which the Project has been undertaken, will assist in carrying out the obligations of the Redevelopment Plan, will be in the vital best interests of the City and the health, safety and welfare of its residents and is in accord with the public purposes and provisions of the applicable state and local laws and requirements under which development in the Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the mutual covenants and obligation of the HRA and the Builder, each party does hereby represent, covenant and agree with the other as follows: ARTICLE I. DEFINITIONS,EXHIBITS,RULES OF INTERPRETATION Section 1.1. Definitions. In this Agreement, the following terms have the meaning given below unless the context clearly requires otherwise: Building Plans. Detailed plans for the Improvements to be constructed on the Property, as required by the local building official for issuance of a building permit. 401253v6 CBR RC125-65 1 Construction Plans. The construction plans approved by the HRA pursuant to Section 4.1 of this Agreement. The Construction Plans include a schedule for construction of the Improvements, preliminary plans and schematics of the Improvements to be constructed, and a landscaping plan. Development. The Property and the Improvements to be constructed thereon according to the Construction Plans approved by the HRA. Event of Default. Event of Default has the meaning given such term in Section 8.1. Guidelines. The Richfield Rediscovered Program Guidelines Lot Sale Program, revised November 15, 2010 and attached as Exhibit B to this Agreement. Homeowner. The individuals purchasing the Property from Builder and who will be living in the home following purchase. Improvements. Each and all of the structures and site improvements constructed on the Property by the Builder,as specified in the Construction Plans to be approved by the HRA. Minimum Market Value. $265,000 which is the minimum market value for the land and Improvements as confirmed by the Hennepin County Assessor. Mortgage. A mortgage obtained by the Builder from a third party lender in accordance with Section 7.2 of this Agreement. Property. The real property legally described as: Lot 5,Block 4,Penn Lake Terrace First Addition, according to the recorded plat thereof, and situate in Hennepin County, Minnesota Located on land having a street address of: 7326 Sheridan Avenue South Unavoidable Delays. Delays which are the direct result of strikes, labor troubles, fire or other casualty to the Improvements, litigation commenced by third parties which results in delays or acts of any federal, state or local government, except those contemplated by this Agreement, which are beyond the control of the Builder. Section 1.2. Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: A. Form of Certificate of Completion B. Program Guidelines—Lot Sale Program 401253v6 Ci3R RC!25-65 2 6.6 C. Form of Quit Claim Deed D. Well Disclosure Section 1.3. Rules of Interpretation. (a) This Agreement shall be interpreted in accordance with and governed by the laws of the State of Minnesota. (b) The words "herein" and "hereof" and words of similar import, without reference to any particular section or subdivision refer to this Agreement as a whole rather than any particular section or subdivision hereof. (c) References herein to any particular section or subdivision hereof are to the section or subdivision of this Agreement as originally executed. (d) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions. ARTICLE II. REPRESENTATIONS AND UNDERTAKINGS Section 2.1. By the Builder. The Builder makes the following representations and undertakings: (a) The Builder has the legal authority and power to enter into this Agreement and has duly authorized the execution,delivery and performance of this Agreement; (b) The Builder has the necessary equity capital or has obtained commitments for financing necessary for construction of the Improvements; (c) The Builder will construct the Improvements in accordance with the terms of this Agreement and all local,state and federal laws and regulations; (d) The Builder will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws and regulations which must be obtained or met before the Improvements may be constructed; (e) The plans for the Improvements have been prepared by a qualified draftsperson or architect; and (f) The Builder has read and understands the Guidelines and agrees to be bound by them. 401253v6 CI R RCI25-65 3 Section 2.2. By the HRA. The HRA makes the following representations as the basis for the undertaking on its part herein contained: (a) The HRA is authorized by law to enter into this Agreement and to carry out its obligations hereunder;and (b) The HRA will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Builder and will cooperate with the efforts of the Builder to secure the granting of any permit, license, or other approval required to allow the construction of the Improvements. ARTICLE 111. ACQUISITION OF PROPERTY; CONVEYANCE TO BUILDER Section 3.1. Purchase of Property by Builder. The HRA agrees to sell the Property to Builder and the Builder agrees to purchase the Property from the HRA in an "as-is" condition. The sale of the Property is contingent upon the Builder providing the HRA with evidence satisfactory to the HRA that Builder has entered into a binding legal commitment, in the form of a Purchase Agreement for the resale of the Property to a Homeowner following completion of the Improvements. The HRA agrees to convey the Property to the Builder by Quit Claim Deed in the general form of Exhibit C. The HRA's deed to the Builder will contain the right of reverter required in Section 8.3. The purchase price for the Property, payable at Closing, will be fifty-six thousand five hundred and 00/100 dollars($56,500)("Purchase Price"). Section 3.2. Title and Examination. As soon as reasonably possible after execution of this Contract for Private Development by both parties, (a) HRA shall surrender any abstract of title and a copy of any owner's title insurance policy for the property, if in HRA's possession or control, to Builder or to Builder's designated title service provider; and (b) Builder shall obtain the title evidence determined necessary or desirable by Builder or Builder's lender, including but not limited to title searches, title examinations, abstracting, a title insurance commitment or an attorney's title opinion, at Builder's selection and cost, and provide a copy to the HRA. The Builder shall have 20 days from the date it receives such title evidence to raise any objections to title it may have. Objections not made within such time will be deemed waived. The HRA shall have 90 days from the date of such objection to effect a cure; provided,however, that the HRA shall have no obligation to cure any objections, and may inform Builder of such. The Builder may then elect to close notwithstanding the uncured objections or declare this Agreement null and void, and the parties will thereby be released from any further obligation hereunder. 401253v6 CBR RC 125-65 4 Section 3.3. Taxes and Special Assessments. Real estate taxes and installments of special assessments will be prorated between the HRA and Builder as of the date of closing. Section 3.4. Soil Conditions and Hazardous Wastes. The Builder acknowledges that the HRA makes no representations or warranties as to the conditions of the soils on the Property, its fitness for the construction of improvements or any other purpose for which the Builder may use the Property, or regarding the presence of hazardous wastes on the Property. The HRA will allow reasonable access to the Property for the Builder to conduct such tests regarding soils conditions and hazardous wastes as the Buyer may desire. Permission to enter the Property to conduct such tests must be given in writing under reasonable terms and conditions established by the HRA. Section 3.5. Site Clearance. The HRA will be responsible for clearance of all buildings as required to prepare the Property for development. All other site preparation is the responsibility of Builder. Builder will comply with all of the provisions of the Guidelines relating to tree protection,preservation and replacement. Section 3.6. Other Preconditions to Closing. Closing may not take place until the HRA is satisfied that the Project is in all respects in full compliance with the provisions of the Guidelines contained in Exhibit B. It is anticipated that the Builder will involve the Homeowner in the various activities required under the Guidelines so that the Homeowner will have an opportunity to contribute suggestions concerning development of the Property. Section 3.7. Closing. Closing must take place on or before October 20, 2012, or such other date as may be agreed to by the Builder and HRA in writing. At Closing, the Builder will provide the HRA with a cash deposit of $10,000 pursuant to Section 5.1, in addition to the Purchase Price. Section 3.8. Closing Costs. The Builder will pay: (a)the closing fees charged by its title insurance company or other closing agent, if any, utilized to close the transaction for Builder; (b)title services chosen by Builder pursuant to Section 3.2 above,including the premium for title insurance policy, if any,and(c)the recording fees for the Contract for Private Development and the deed transferring title to the Builder. HRA will pay all other fees normally paid by sellers, including (a) any transfer taxes, 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. Section 3.9. Sewer and Water. HRA warrants that city water is available at the lot line and city sewer is available at the curb. Section 3.10. ISTS Disclosure. HRA is not aware of any individual sewage treatment system on the property. Buyer is responsible for all costs of removing any individual sewage treatment system that may be discovered on the Property. Section 3.11. Well Disclosure. HRA's knowledge of wells on the Property is disclosed in Exhibit D. 401253v6 CI3R RC 125-65 5 ARTICLE IV. CONSTRUCTION OF IMPROVEMENTS Section 4.1. Construction of Improvements. The Builder shall construct the Improvements on the Property in accordance with the Guidelines and the Construction Plans, shall cause the Improvements to meet or exceed the Minimum Market Value specified in Section 1.1, and shall maintain, preserve and keep the Improvements in good repair and condition. The Builder shall provide his or her proposed construction plans to the HRA for review; if the proposed construction plans are in conformity with this Agreement and the Guidelines, the HRA will approve the Construction Plans following review and comment by the Homeowner. Section 4.2. Construction Plans. No building permit will be issued by the City unless the Building Plans are in conformity with the Guidelines, the Construction Plans, the Builder's Minimum Market Value, other requirements contained in this Agreement, and all local, state and federal regulations. The Builder shall provide the HRA with a set of Building Plans to be used in connection with any application for a building permit. The HRA shall, within 25 days of receipt of the Building Plans review the same to determine whether the foregoing requirements have been met. If the HRA determines such Building Plans to be deficient, it shall notify the Builder in writing stating the deficiencies and the steps necessary for correction. Issuance of the building permit by the City shall be a conclusive determination that the Building Plans have been approved and shall satisfy the provisions of this Section 4.2. Section 4.3. Schedule of Construction. Subject to Unavoidable Delays,construction of the Improvements shall be completed prior to December 31, 2012. All construction shall be in conformity with the approved Construction Plans and the Guidelines. Periodically during construction the Builder shall make reports in such detail as may reasonably be requested by the HRA concerning the actual progress of construction. If at any time prior to completion of construction the HRA has cause to believe that the Builder will be unable to complete construction of the Improvements in the time permitted by this Section 4.3, it may notify the Builder and demand assurances from the Builder regarding the Builder's construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of any of the remedies specified in Section 8.2 of this Agreement. Section 4.4. Certificate of Completion. After notification by the Builder of completion of construct-ion of the Improvements, the HRA shall inspect the construction to determine whether the Improvements have been completed in accordance with the Construction Plans and the terms of this Agreement, including the date of the completion thereof. In the event that the HRA is satisfied with the construction, and upon closing on the sale of the Property to the Homeowner, the HRA shall furnish the Builder with a Certificate of Completion in the form attached hereto as Exhibit A. Such certification by the HRA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement. Issuance of the Certificate of Completion shall also serve as a satisfaction of any obligation of Builder 401253v6 CBR RC 125-65 6 secured by the escrow account established under Section 5.1, and the cash in the escrow account will be released to the Builder. At the time a Certificate of Completion is issued, the HRA will also provide Builder with a $5,000 cash rebate if Builder has obtained Green Community Concepts certification through LEED for Homes, Minnesota GreenStar, Minnesota Green Communities,Minnesota Green Path,or Energy Star New.Homes Certification. If the HRA shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the HRA shall within 15 days of such notification provide the Builder with a written statement, indicating in adequate detail in what respects the Builder has failed to complete the Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the HRA, for the Builder to take or perform in order to obtain such certification. Section 4.5. Failure to Construct. In the event that construction of the Improvements is not completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed to have occurred, and the HRA may proceed with its remedies under Section 8.2. ARTICLE V. REDEVELOPMENT ASSISTANCE Section 5.1. Establishment of Cash Escrow. Builder acknowledges that although it is purchasing the Property at its fair market value as raw land, the HRA has incurred significant costs in acquiring and preparing the Property for development by Builder. At Closing, Builder will deliver to the HRA $10,000 to be placed in a non-interest bearing escrow account pursuant to the Escrow Agreement,dated as of the date hereof,between Builder and HRA. The obligation to pay the $10,000 to the HRA will be forgiven, and the cash in the escrow account will be returned to Builder if: (i) the Builder receives a Certificate of Completion; and(ii) the Builder is not otherwise in default of any of its obligations hereunder. If such have not occurred, an Event of Default shall be deemed to have occurred and the HRA may exercise its remedies under Section 8.2. ARTICLE VI. FINANCING Section 6.1. Financing. HRA acknowledges that Builder has submitted evidence of financing for the Improvements in compliance with the provisions of Section 2.1(b) of this Agreement. Builder must notify HRA immediately of any changes to or withdrawal of the approved financing, HRA shall have 10 days to approve or disapprove changes in financing. If the HRA rejects a change in the approved financing or if the approved financing is withdrawn, the Builder shall have 30 days or such additional period of time as the Builder may reasonably require from the date of the HRA's notification to submit evidence of financing satisfactory to the HRA. If the Builder fails to submit such evidence or fails to use due diligence in pursuing financing, the HRA may terminate this Agreement and both parties shall be released from any 401253v6 CBR RC125-65 7 5 further obligation or liability hereunder. Closing shall not take place until Builder has provided HRA with acceptable evidence of financing for construction of the Improvements. Section 6.2. Copy of Notice of Default to Lender. Whenever the HRA shall deliver any notice or demand to the Builder with respect to any Event of Default by the Builder in its obligations or covenants under this Agreement,the HRA shall at the same time forward a copy of such notice or demand to each holder of any Mortgage authorized by the Agreement at the last address of such holder shown in the records of the HRA. Section 6.3. Subordination. hi order to facilitate obtaining financing for the construction of the Improvements by the Builder, the HRA may, in its sole and exclusive discretion, agree to modify this Agreement in the manner and to the extent the HRA deems reasonable,upon request by the financial institution and the Builder. ARTICLE VII. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 7.1. Representation as to Redevelopment. The Builder represents and agrees that its undertakings pursuant to the Agreement, are for the purpose of development of the Property and not for speculation in land holding. The Builder further recognizes that, in view of the importance of the Development to the general welfare of Richfield and the substantial financing and other public aids that have been made available by the HRA for the purpose of making the Development possible, the qualification and identity of the Builder are of particular concern to the HRA. The Builder further recognizes that it is because of such qualifications and identity that the HRA is entering into this Agreement, and, in so doing, is further willing to rely on the representations and undertakings of the Builder for the faithful performance of all undertakings and covenants agreed by the Builder to be performed. Section 7.2. Prohibition Against Transfer of Property and Assignment of Agreement. For the reasons set out in Section 7.1 of this Agreement, the Builder represents and agrees as follows: (a) Except as specifically allowed by this section, Builder has not made or created, and, prior to the issuance of the Certificate of Completion, Builder will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same,without the prior written approval of the HRA. (b) This provision shall not be deemed as preventing the Builder from entering into a Purchase Agreement for the sale of the Property to a Homeowner. (c) This provision does not prohibit conveyances that are only by way of security for, and only for the purpose of obtaining financing necessary to enable the Builder or any successor in interest to the Property, or any part thereof, to perform its obligations with respect to the 4012530 Cu R RC125-65 8 .5;1V Development under this Agreement, and any other purpose authorized by this Agreement. Any Mortgage obtained by the Builder must be disclosed to the HRA, and must be subordinate to this Agreement. The Builder must provide the HRA with an address for the holder of the Mortgage for purposes of providing notices as may be required by this Agreement. ARTICLE VIII. EVENTS OF DEFAULT Section 8.1. Events of Default Defined. The following shall be deemed Events of Default under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides,any one or more of the following events: (a) Failure by the Builder to pay when due the payments required to be paid or secured under any provision of this Agreement; (b) Failure by the Builder to observe and substantially perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder, including the time for such performance; (c) If the Builder shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy,or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Property; (d) If the Builder, on a petition in bankruptcy filed against it, be adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order or decree appointing, without the consent of the Builder, a receiver of the Builder or of the whole or substantially all of its property, or approve a petition filed against the Builder seeking reorganization or arrangement of the Builder under the federal bankruptcy laws,and such adjudication,order or decree shall not be vacated or set aside or stayed within 60 days from the date of entry thereof; or (e) If the Development is in default under any Mortgage and has not entered into a work-out agreement with the holder of the Mortgage. Section 8.2. Remedies on Default. Whenever any Event of Default occurs, the HRA may, in addition to any other remedies or rights given the HRA under this Agreement, take any one or more of the following actions following written notice by the HRA to the Builder as provided in Section.9.3 of this Agreement: (a) Suspend its performance under this Agreement until it receives assurances from the Builder, deemed reasonably adequate by the HRA, that the Builder will cure its default and continue its performance under this Agreement; (b) Cancel or rescind this Agreement; 401253v6 CBR RC 125-65 9 (c) Exercise its right under Section 8.3; (d) Withdraw all funds in the escrow account established in Section 5.1; (e) Withhold the Certificate of Completion;or (f) Take whatever action at law or in equity may appear necessary or desirable to the HRA to enforce performance and observance of any obligation, agreement, or covenant of the Builder under this Agreement; provided, however, that any exercise by the HRA of its rights or remedies hereunder shall always be subject to and limited by, and shall not defeat,render invalid or limit in any way(a) the lien of any Mortgage authorized by this Agreement and(b) any rights or interest provided in this Agreement for the protection of the holders of a Mortgage; and provided further that should any holder of a Mortgage succeed by foreclosure of the Mortgage or deed in lieu thereof to the Builder's interest in the Property, it shall, notwithstanding the foregoing, be obligated to perform the obligations of the Builder under this Agreement to the extent that the same have not therefore been performed by the Builder. Section 8.3. Revesting Interest in HRA Upon Happening of Event of Default Subsequent to Conveyance of Property to Builder. In the event that subsequent to the closing or the sale of the Property to the Builder and prior to the issuance of the Certificate of Completion: (a) The Builder fails to begin construction of the Improvements in conformity with this Agreement,and such failure is not due to Unavoidable Delays; (b) The Builder, after commencement of the construction of the Improvements, defaults in or violates obligations with respect to the construction of the Improvements, including the nature and the date for the completion thereof, or abandons or substantially suspends construction work,and such act or actions is not due to Unavoidable Delays; (c) The Builder or successor in interest fails to pay real estate taxes or assessments on the Property or any part thereof when due, or places thereon any encumbrance or lien unauthorized by this Agreement, or suffers any levy or attachment to be made, or any supplier's or mechanic's lien,or any other unauthorized encumbrance or lien to attach; (d) There is, in violation of Article VII of this Agreement,any transfer of the Property or any part thereof; or (e) The Builder fails to comply with any of its covenants under this Agreement, then the HRA shall have the right upon 30 days' written notice to Builder and the Builder's failure to cure within such 30 days period, to re-enter and take possession of the Property and to terminate and revest in the HRA the interest of the Builder in the Property; provided, however, that such revestiture of title shall be subject to the lien of any prior encumbrance permitted under 401253v6 CBR RC 125-65 10 this Agreement, or any right of a Homeowner pursuant to a valid Purchase Agreement authorized by this Agreement. Section 8.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to the HRA is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the HRA or the Builder to exercise any remedy reserved to it,it shall not be necessary to give notice, other than such notice as may be required in this Article VIII. Section 8.5. No Additional Waiver Implied by One Waiver. In the event of the occurrence of any Event of Default by either party, which Event of Default is thereafter waived by the other party, such waiver shall be limited to the particular Event of Default so waived and shall not be deemed to waive any other concurrent,previous or subsequent Event of Default. ARTICLE IX. ADDITIONAL PROVISIONS Section 9.1. Conflict of Interests; Representatives Not Individually Liable. No HRA officer who is authorized to take part in any manner in making this Agreement in his or her official capacity shall voluntarily have a personal financial interest in this Agreement or benefit financially there from. No member, official, or employee of the HRA shall be personally liable to the Builder, or any successor in interest, for any Event of Default by the HRA or for any amount which may become due to the Builder or successor or on any obligations wider the terms of this Agreement. Section 9.2. Non-Discrimination. The provisions of Minnesota Statutes Section 181.59,which relate to civil rights and non-discrimination, and any affirmative action program of the City shall be considered a part of this Agreement and binding on the Builder as though fully set forth herein, Section 9.3. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice,demand or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt requested or delivered personally: 401253v6 CE3R RC 125-65 11 (a) As to the HRA: Richfield HRA Executive Director 6700 Portland Avenue South Richfield,MN 55423 (b) As to the Builder: Endres Custom Homes, Inc. 15690 Duck Pond Way Apple Valley, MN 55124 or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section 9.3. Section 9.4. Counterparts. This Agreement may be simultaneously executed in any number of counterparts,all of which shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first above written. [signature pages follow] 401253v6 CBR RC125-65 12 Signature Page for HRA THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA By Its Chairperson By Its Executive Director STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 20 , by , the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate and politic under the laws of Minnesota,on behalf of the authority. Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of 20 , by ,the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate and politic under the laws of Minnesota, on behalf of the authority. Notary Public 401253v6 CBR RC 125-65 13 e Signature. 'age Isc&Adel Builder Endres Custom Homes, Inc. e os.�w.w•o.. By --WARM= tar• Presar * STATE OF MINNESOTA ) ill SS V' The foregoing instrument was ckiiowledged before me this day of' , 20 U?_ , by / It "%/,'�ve the �\Ul lL✓1>� of e IC k iv-. J 1,1 c.— , a LAM " under the laws of M i t'1 RQ.SO , on behalf of the MARIO GONIAlE2 MONTANE2 NOtaiy '1 r lie _' Notary Public ^rte' State of M +,c,�,)h?' My CCmmission nnesota Expires • • January 31. 2013 4111 4.,3,Y.Ct{lt i:j"- 3 51 EXHIBIT A FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that , has fully and completely complied with its obligations under that document entitled "Contract for Private Development", between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota and dated filed as Document No. (the "Contract") with respect to the construction of the approved construction plans at , legally described as and is released and forever discharged from its obligations under such Contract. DATED: THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY RICHFIELD By: Its: Executive Director STATE OF MINNESOTA ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of , 20_, by the Executive Director of 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 on behalf of the public body corporate and politic. Notary Public This instrument was drafted by: Kennedy&Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 A-1 401253v6 CBR RC125-65 L5 ,21 EXHIBIT B PROGRAM GUIDELINES-LOT SALE PROGRAM RICHFIELD REDISCOVERED PROGRAM GUIDELINES LOT SALE PROGRAM REVISED: NOVEMBER 15, 2010 401253v6 CBR RC125-65 B-1 PROGRAM OBJECTIVES DEFINITIONS PROGRAM BASICS APPLICATION REQUIREMENTS ADDITIONAL REQUIREMENTS HOUSE DESIGN AND SITE DEVELOPMENT REQUIREMENTS New House Standards Site Standards Construction Requirements General Standards Green Community Concepts CITY REVIEW PROCEDURE LOT SALE TO BUILDER/BUYER PROGRAM MARKETING DATA PRIVACY B-2 401253v6 CBR RC 125-65 5 ?9 This document has been developed as a guidance tool for program administration. It should not be interpreted as constituting any contractual agreement or liability by the City or Housing and Redevelopment Authority (HRA). The HRA may modify or divert from the guidelines where it deems appropriate. I. Program Objectives 1. To remove substandard, functionally obsolete housing on scattered sites throughout the City and replace with new, higher-valued housing. 2. To eliminate the blighting influence of substandard housing, thus improving residential neighborhoods. 3. To alleviate the shortage of housing choices for families. 4. To facilitate the construction of larger three- to four-bedroom, owner-occupied homes designed for families. 5. To facilitate the construction of multi-unit, owner-occupied homes designed to expand family opportunities or to serve elderly residents. These objectives will be achieved through the sale of lots by the Housing and Redevelopment Authority to Builder/Buyer teams for the development of newly constructed homes. H. Definitions Applicant:An individual who submits an application for a Richfield Rediscovered lot. The Applicant may be a Builder or the end Buyer. If the Applicant is a Builder, an end Buyer should be identified. If the Applicant is the Buyer, the Applicant must submit a signed contract between the Builder and the Buyer to build a home on the lot identified in the application. Buyer.An individual(s)who will build, own and occupy a new housing unit in Richfield. The Buyer will occupy the property and not offer it for rent. The Buyer may not also function as the Builder on a Richfield Rediscovered project. The Buyer and Builder must be unrelated separate legal entities. A speculative project by a Buyer may be considered if all other program requirements can be met. However, neither the Buyer, the Buyer's Builder or Builder's subcontractors, or the Builder's realty agents may occupy or purchase the property. Buyers, unless licensed in the trade specified, may not put any sweat equity into the construction of the foundation, wall/roof framing, shingling, exterior work, electrical/plumbing/HVAC systems or interior carpentry. Builder. Contractor who has signed a contract with the Buyer to build a home on the lot identified in the application. Contract for Private Development A contract between the HRA and the Builder or Buyer that establishes the conditions under which the lot will be sold and the proposed house will be developed. Green Community Concepts Plan: A written plan indicating how the proposed development will incorporate green building features and concepts. Priority will be given to projects that incorporate green building features. HRA: Housing and Redevelopment Authority in and for the City of Richfield. Lot List A listing of available lots for sale. Information regarding the lot location, size and sale price is provided. B-3 401253v6 CBR RC 125-65 Ill. Program Basics 1. HRA publishes a list of available vacant lots for purchase including sale price and development criteria. 2. Builder/Buyer team proposes a plan for a lot consistent with development criteria and program requirements and makes an offer to purchase. 3. HRA approves lot sale. 4. Lot is sold to Builder or Buyer. 5. Builder constructs new home. 6. Projects must be completed within one year of HRA approval of the project. IV. Application Requirements The following must be submitted for application to the program: 1. $525 application fee An application fee must be paid at the time of application. This fee is non-refundable and is not part of the lot price. 2. Application Form 3. Construction Plans The layout of all levels, including basement and unfinished space, must be provided. 4. Elevations Elevations of all four sides of the house, including view of garage shall be provided. Colored renderings may also be required. 5. Site plan The site plan shall indicate the location of the new house,walkways and garage. 6. Landscaping plan A landscaping plan must indicate the location and type of trees, shrubbery, flowers and landscaping materials(e.g. rocks, mulch) and any existing trees to be preserved. 7. Detail of construction materials to be used on the project. 8. Green Community Concepts Plan The plan should indicate what Green Community Concepts will be incorporated into the project. 9. Construction timeline Construction must be completed with one year of the purchase of the property. 10. Signed contract with Builder 11. Purchase agreement If the Builder plans to purchase the lot, the application must include a valid purchase agreement between the Buyer and the Builder for the lot to be developed. 12. Financial capability statement A statement from a financial institution indicating willingness to provide sufficient construction capital to complete the project must be provided. B-4 401253v6 CBR RC125-65 13. Builder References a. Five previous customers b. Three major suppliers, one being the construction supplier c. Building inspectors from two cities where the Builder has constructed new housing within the past three years 14. Proof of Builder's Comprehensive General Liability with Property Damage Protection. 15. Proof of sufficient worker's compensation insurance coverage by the Builder. 16. Written warranty program To be provided to the Buyer, which guarantees at a minimum, warranted repairs as required by Minnesota State Statute. V. Additional Program Requirements 1. The Applicant is expected to meet with an architectural/design consultant prior to submitting an application. A two-hour consultation is available through the HRA at a cost of$25 to the applicant. See the City's website (www.citvofrichfield.oro) for more information. This requirement may be waived if the applicant is using an architect for the project. 2. The site will be sold to the Builder or Buyer at the fair market value as appears on the Lot List. The HRA will not accept offers for less than the established sale price. 3. A Contract for Private Development is signed by the HRA and the Builder or the Buyer. The Contract is a standard form which includes conditions for acquisition and development of the property. The Contract will also establish a minimum required end-value for the property based on construction estimates provided by the applicant. The Builder or Buyer will be expected to agree to the terms of the Contract before the application can be scheduled on the HRA agenda. 4. All lots will have a required minimum end value that will be established in the Contract for Private Redevelopment. 5. The lot can be sold to either the Builder or the Buyer. If the lot is sold to the Builder, the Builder will pay cash for the lot at closing and submit a Letter of Credit or cash escrow for$10,000. The Letter of Credit must be from a financial institution incorporated in the Twin Cities metropolitan area. The cash escrow will be held in a non-interest bearing account. The Letter of Credit or cash escrow will be released once the construction and landscape work are completed and a final Certificate of Occupancy is issued. 6. If the lot is sold to the Builder and the Builder fails to complete construction as approved by the HRA, the Letter of Credit or cash escrow may be drawn upon by the HRA. In addition, the Contract for Private Development will contain a reverter provision, which will enable the HRA to reclaim ownership of the property in the event of a default in the Contract. In the event that the Builder fails to complete construction, the HRA may exercise its rights under the reverter provision, as well as draw upon the Letter of Credit or cash escrow. 7. If the lot is sold to the Buyer, the Buyer will pay cash for the lot at closing and a$10,000 mortgage in favor of the HRA will be filed on the property. The mortgage will be in first position. The HRA may consider subordinating its interest in appropriate cases. 8. If the lot is sold to the Buyer and the Buyer fails to complete construction as approved by the HRA, the HRA may exercise its rights provided in the mortgage. B-5 401253v6 CBR RC125-65 VI. House Design and Site Development Requirements The development of all sites shall meet the development criteria listed below, as reviewed and approved by the HRA. To maximize the development of a given lot, the HRA reserves the right to explore all development options without obligating the HRA to support any specific proposal, idea or solicitation. Housing design is a critical element of the program. Siding materials, exterior façade presentation, roof, window, siding and building line variability, finished landscape, interior space function and use are all important issues of design to the HRA. The design requirements were created to ensure that the homes built on the HRA-sold lots blend in with the surrounding neighborhood and respond to the specific concerns of the HRA. All new houses built under the Richfield Rediscovered Program must meet the requirements of the City's Zoning Code and additional criteria, as listed in this document. A. New House Standards 1. New dwelling must be owner-occupied. 2. Three finished bedrooms are required. 3. Two finished bathrooms are required. 4. Two-car garage is required. 5. A full basement is required, unless the selected design results in a split-level or a garden-level type of basement. In the case of an "accessible" house, a basement may be omitted if it would otherwise prohibit accessible design elements. B. Site Standards 1. After construction, the site must be fully landscaped, including plantings around the foundation. The entire grounds shall be landscaped and be aesthetically pleasing in all seasons. Land forms and plant materials shall be used to define the site and blend neatly with adjoining properties. Specific lot line blending requirements may be required, as appropriate, for specific sites. At a minimum, the applicant must meet the "Landscaping and Screening Requirements" in the City's Zoning Code under Section 544.03, Subd.4, General landscaping requirements and Subd. 5, Residential sites. The code is available on the City's website: http://www.ci.richfield.mn.us To the greatest extent possible, existing trees should be preserved. Any trees removed must be replaced (they do not have to be the same species or in the same location) and should be labeled on the required landscape plan. 2. Utility meters shall be screened from street view and locations must be specified on plans. 3. Site drainage should be accommodated on the site so that water is directed away from the new home and the neighboring properties. Neighboring properties must not be disturbed by the creation of drainage swales. Specific storm water management requirements may be required, as appropriate, including the addition of gutters or on-site management for specific sites. Construction and the finished structure must not have a detrimental impact on storm water drainage patterns in the neighborhood. 4. All air conditioning units must be located in the rear yard of the house, or as approved by the HRA. B-6 401253v6 CBR RC125-65 5,35 C. Construction Requirements 1. Existing trees identified on the landscape plan as being preserved, must be protected during construction. A tree wrap with board reinforcements shall be used on trees directly adjacent to active grading and construction areas. Damaged or destroyed trees must be replaced. 2. The construction site, neighboring properties and adjacent public streets shall be kept free of construction debris at all times. 3. No construction workers, construction equipment or construction material shall encroach upon neighboring properties. 4. The property shall have a new sanitary service line installed to the City sanitary sewer main consisting of schedule 40 PVC or equivalent. If there is an existing 6" sewer stub at the property line, it must be lined with 4" schedule 40 PVC or equivalent to the City's sanitary main, and it must include a"donut"at the end with cement. The line must be televised after installation to ensure the following: 1. There are no obstructions in the line. 2. The PVC liner is not protruding into the City's sanitary sewer main line. D. General Standards 1. The value of the new home must meet or exceed the minimum value specified in the Contract for Private Redevelopment. 2. All homes in the Richfield Rediscovered Program must be stick-built or high-quality modular, new construction. 3. Exterior materials (siding, soffit, doors and windows) should be low-maintenance and durable. Brick, aluminum, vinyl and fiber cement siding are preferred. Natural cedar lap is acceptable if properly stained or painted. Hardboard panels or hardboard lap siding are prohibited. Roof valleys must have metal valleys and not be woven. 4. Unit height and mass of the new house shall be compatible with the scale of the surrounding homes in the neighborhood. 5. Plans must present a balanced and pleasing distribution of wall, door and window areas from all views. 6. The dominance of the garage door must be minimized through placement, architectural detail, door design and utilization and design of windows. Garages, where the garage door faces the street, shall not be located closer to the front lot line than the foremost facade of the principal building facing the front property line. Garage sidewalls that face the street should appear to contain habitable space. This can be accomplished by incorporating windows and other design elements into the garage wall that are in character with the remainder of the dwelling. For lots that have alley access,the garage should be oriented to access the alley. 7. All Construction Plans must have been prepared in consultation with an architect or qualified draftsperson. All requirements by the Building Inspections Division must be met. 8. All Richfield Rediscovered houses must meet or exceed Minnesota Energy Code requirements. B-7 401253v6 CBR RC125-65 ,5L\ 9. All new homes shall be built to provide high quality sound insulation. Recommendations for sound insulation measures may be provided on a site-by-site basis. All construction must conform to current sound attenuation building standards for properties located in 65-69 and 70-74 DNL zones. 9. If a variance is required to construct the proposed development, the HRA may, at its sole discretion, choose to reject the application. 10. If the HRA accepts an application that needs a variance(s), sale of the property will be contingent upon the applicant obtaining the necessary variance(s). The Applicant is responsible for applying for the variance(s)at its own expense. The HRA, as owner of the property,will, however, cooperate with the application. E. Green Community Concepts Priority will be given to projects incorporating the green community concepts listed below. Any concepts the applicant would like considered during the application process should be explained in a written plan submitted with the application. A$5,000 rebate will be provided to the Applicant for projects that obtain certification through LEED for Homes, Minnesota GreenStar, Minnesota Green Communities or Energy Star New Home Certification. 1. Protect and conserve water and soil. To reduce water consumption, consider the use of water- conserving appliances, fixtures, and landscaping. Steps should be taken to minimize the loss of soil and sediment during construction and occupancy to reduce storm-water sediment and air pollution. 2. Minimize energy consumption. Reduce energy consumption by taking advantage of natural heating, cooling and day lighting, and by using energy-efficient appliances, equipment and lighting. 3. Enhance indoor environmental quality. Use non-toxic materials, ventilation and exhaust systems, and moisture control products and systems. 4. Use environmentally-preferable materials and resources. Use locally-produced, salvaged and/or manufactured materials, products with recycled content or from renewable sources, recyclable or reusable materials, and low-VOC-emitting materials. 5. Reduce waste. Reduce and manage wastes generated during the construction process and operation of buildings. If demolition occurs, sort and recycle leftover materials and debris. VII. City Review Procedure 1. Applicant reviews proposed project with HRA staff before plans are finalized. 2. Applicant submits application, plans, and. application fee at least 45 days prior to the HRA meeting. 3. An application is considered to be received when delivered personally to HRA staff in a pre- arranged meeting. Following this meeting and upon receipt of the application fee, the lot will be considered reserved and no additional applications will be accepted for the proposed lot while the application is under review. B-8 401253v6 CBR RC125-65 4. If an application is determined to be incomplete, the applicant will have 30 days to submit a complete application. If a complete application is not received within 30 days, the application will be rejected and the lot will be made available for new applications. 5. HRA staff review application to ensure conformance with House Design and Site Development Requirements. 6. HRA staff may reject or accept an application at its sole discretion. 7. The Builder or Buyer executes a Contract for Private Redevelopment. 8. An application is determined to be complete and the Contract executed at least three weeks prior to the HRA meeting. 9. HRA staff publishes a legal notice of the public hearing and prepares a report and recommendation for the HRA. 10. HRA reviews application, conducts a public hearing, and takes action at the HRA meeting. 11. If approved,the Contract for Private Redevelopment is executed by the HRA. VIII. Lot Sale to Builder or Buyer 1. Upon approval of the application by the HRA, a closing will be scheduled between the HRA and the Builder or Buyer. 2. The HRA will prepare all statements, affidavits, documents, and general release forms required for closing. 3. The Builder applies for a building permit prior to closing. The Builder is responsible for acquiring the necessary building permits with the City of Richfield Building Inspections Division. If changes to the plans are required by the Inspections Division, the applicant must notify HRA staff. 4. The Applicant provides evidence to HRA staff that all requirements to proceed with construction, as determined in the Contract for Private Redevelopment, have been met. 5. The HRA conveys the property to the Builder or Buyer by Quit Claim Deed. The site will be sold to the Builder or Buyer at the fair market value as appears on the Lot List. 6. At closing with the Builder, the Builder provides a Letter of Credit or cash escrow for$10,000 to the HRA. 7. At closing with the Buyer, the Buyer signs a mortgage and promissory note for$10,000 in favor of the HRA. 8. Upon completion of the project and closing on the sale of the Property to the Homeowner, the Letter of Credit or cash escrow is released to the Builder or the Buyer's mortgage is released. A Certificate of Completion is executed by the HRA, releasing the obligations of the Contract for Private Redevelopment. B-9 401253v6 CBR RC 125-65 019 IX. Program Marketing Richfield Rediscovered program marketing is entirely at the discretion of the HRA. It may include the following: 1. Buyer Solicitation. The HRA may market the program to potential Buyers through promotional articles, direct mail, the Internet, or other methods as deemed appropriate. Buyers may be any financially capable individual or household, including first-time buyers, move-up buyers or empty- nesters. 2. Public Promotion. a. The HRA will periodically provide information about the program through articles in city publications, on the City's web site, on the Community Cable channel, or via press releases to promote community awareness. b. A public open house may be held to provide an opportunity for residents and other interested parties to collectively view the finished homes. The Parade of Homes Fall Showcase and Spring Preview may also accomplish this. A program information package will be mailed to all interested participants. The information packet may include the following: 1. Lot List 2. Richfield Rediscovered Lot Sale Procedural Guidelines 3. Application Form 4. Sample Contract for Private Redevelopment X. Data Privacy All information secured through the program is subject to the Data Privacy Act. B-10 401253v6 CBR RC125-65 31 EXHIBIT C QUIT CLAIM DEED STATE DEED TAX DUE HEREON: $ Date: FOR VALUABLE CONSIDERATION, 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, Grantor, hereby conveys and quit claims to , a under the laws of the State of , Grantee, real property in Hennepin County, Minnesota, described as follows: , according to the map or plat thereof on file or of record in the office of the Hennepin County Recorder. This deed is subject to that certain Contract for Private Development between Grantor and Grantee, dated , 20 (the "Contract"), recorded , 20_, in the office of the Hennepin County Recorder/Registrar of Titles as Document No. . The Contract provides that the Grantee's rights and interest in the real property described above are subject to the Grantor's right to re-enter and revest in Grantor title to the Property under conditions specified therein, including but not limited to termination of the Grantor's right to re-enter and revest upon issuance of a Certificate of Completion as defined in the Agreement. (if more space is needed, continue on back) together with all hereditaments and appurtenances. DThe Seller certifies that the seller does not know of any wells on the described real property. DA well disclosure certificate accompanies this document. DI am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD Affix Deed Tax Stamp Here By Its Chairperson By Its Executive Director C-1 401253v6 CBR RC125-65 STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this day of , 20 , by , the Chairperson of the Housing and Redevelopment Authority in and for the - City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the corporation, Grantor. NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAK) SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this day of , 20_, by , the Executive Director, of 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, on behalf of the corporation, Grantor. SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAK) Check here if part or all of the land is Registered(Torrens)❑ Tax Statements for the real property described in this instrument should be sent to (include name and address of Grantee): This instrument drafted by: Kennedy& Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis,MN 55402 C-2 401253v6 CBR RC125-65 EXHIBIT D WELL DISCLOSURE ❑ The Seller certifies that the seller does not know of any wells on the described real property. ❑ A well disclosure certificate accompanies this document. X The status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. D-1 401253v6 CBR RC125-65 AGENDA ITEM#: 6 REPORT#: 38 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 20, 2012 REPORT PREPARED BY: JULIE URBAN,HOUSING SPECIALIST NAME,TITLE REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR ACTING DEPARTMENT DIRECTOR �.44Taff=r�a��REVIEW: !i�• AWAWfaMv � r:M4 CAW, REVIEWED BY EXECUTIVE DIRECTOR: • ITEM FOR HRA CONSIDERATION: Consideration of a request to forgive a New Home second mortgage at 6321 Morgan Avenue. I. RECOMMENDED ACTION: By Motion: 1) Direct staff to amend the promissory note and mortgage related to the New Home loan provided to Andrew and Patty Beggs of 6321 Morgan Avenue so that the loan is due and payable upon the earlier of the sale or transfer of the property or twenty years from the date of the amendment, and; 2) Consider establishing a policy whereby future similar requests are addressed in the same manner. II. BACKGROUND In 1992 Andrew and Patty Beggs purchased the home at 6321 Morgan Avenue through the Housing and Redevelopment Authority's (HRA) New Home loan program. The gap between the purchase price and the mortgage that the Beggs could afford was covered with a loan from the HRA in the amount of$25,000, which was evidenced by a promissory note (the "Note") and secured by a second mortgage in favor of the HRA (the "Mortgage"). 08202012 New Home Mortgage 6321 Morgan.doc 408793v2 JAE RC125-1 The Note matures (and is due and payable) upon various occurrences, including upon payment in full of the first mortgage or refinancing. Recently, Andrew Beggs contacted staff and explained that they were planning to pay off their first mortgage, but they didn't have an additional $25,000 to pay off the HRA Mortgage. The Beggs have submitted a letter to the HRA asking that the HRA's loan be forgiven and the Mortgage be satisfied. In 2003, the Beggs' refinanced their first mortgage. At that time, the HRA was asked and agreed to consent to the refinancing by subordinating the HRA's Mortgage to the new first mortgage. In the case of the New Home program, the terms of the notes and mortgages changed slightly over the years (from 1983 to 2003), but the mortgages have typically been due and payable upon the maturity. One New Home mortgage was amended in 2008 to be forgiven after 22 years. In contrast, the HRA's Rehabilitation Loan program has typically provided 30-year, no interest, deferred loans that are forgiven if the borrower remains in the home for 30 years. Eleven of the twenty active New Home loans contain a provision in the note that the loan is due and payable upon satisfaction of the first mortgage or refinancing. In all of those cases, the HRA has at one time agreed to subordinate its mortgage thereby waiving the refinancing provision. Staff recommends the amendment of the promissory note and mortgage to make the loan due and payable upon the earlier of the sale and transfer of the property, or twenty years from the date of the amendment. III. BASIS OF RECOMMENDATION A. POLICY • The New Home Program requires all second mortgages to be due and payable upon the maturity date or upon various other events of maturity provided in the Promissory Note. • In comparison, the HRA's Deferred Loan and Transformation Home Loans are forgiven after 30 years. • Nineteen of the twenty New Home loans are due and payable upon the maturity date. It is likely that other homeowners will be in a situation similar to the Beggs and be unable to satisfy the HRA loan absent a sale of the property. The HRA staff requests the HRA provide staff with policy direction on how to treat future requests for forgiveness. B. CRITICAL TIMING ISSUES • The Beggs' want to pay off their first mortgage; however, they have delayed doing so until they know what action the HRA plans to take. C. FINANCIAL 408793v2 JAE RC125-1 • The HRA's loan to the Beggs to finance their house located at 6321 Morgan Avenue was originally financed with Community Development Block Grant (CDBG) funding. There is no requirement that CDBG funds be repaid. • It would be difficult for the Beggs to pay off the HRA's loan absent equity from the sale of their home. D. LEGAL • In order to enforce the note and require the Beggs to repay the second mortgage at the time their first mortgage is repaid, the HRA may need to file civil action. The HRA attorney will be in attendance to explain this further if the HRA wishes to pursue this action. IV. ALTERNATIVE RECOMMENDATION(S) • Forgive the loan. • Forgive the loan, and direct staff to amend all New Home second mortgages to be forgivable after 30 years. • Enforce the promissory note and pursue all legal remedies to seek loan repayment. V. ATTACHMENTS • Letter from Andrew and Patty Beggs, 6321 Morgan Avenue • Amendment to Promissory Note and Mortgage VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Andrew and Patty Beggs, 6321 Morgan Avenue • HRA legal counsel 408793v2 JAE RC125-1 fipri / 7� -2/1/-� . / �� uo �~ ~'c��, / 0'\ From; � _ / / ' _-y -_A‘ie-'Se". .-- -____'---�-__--'_-_-_ _______. ��i /- _ 5- 1~91 ^" ______-____-_-____-__-___-___-.PP. _� _'_-� _ / /^° 1---6 _ - _ _��_ _'�--�=_~�_~_.__-_'_ y I514,12:j . -t-- Si c e ri.J Mort/ale- _ _ 6/:JrRe ici 1.12.Pt_5t,`f19._14 ._4,_..f'_61.1„..._.._ .._. .._ .___,_. I W- e- ke-re bli r_eluesi__-/P___/21,.. _&4_-_ _______ . 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Li r red■ l'NoS beer\ Ix+ o-P vvorl c .ZZa.. e4c6;ef cor, ofd&l% Ver, YL _ B ` ��_ i '1 CtY+ +t Y , _ ?' T 1 __ 3_/. _ye • "DDh )6+ 6,0 . + ' Lot +k a A-,cRciti-i- heet14441 Vo .T+16 6411\ tin Hs + pct- voo,r-K fat_ o1/4.__ __ t X19 ---- t, _ 6tse f tit Y\ eY`n \o nr\e"-t- _CCArl MA3 Me_d 1 CCU w e- wor-e- -Porcecl- e- bevhXr-179)+ 11 n ( 010 - -r cat yeArs, a Lc r h©k_s-ems 1 `--h ` c o11 sue_ .� \ es4-a-'4 - , dob+ L - lr1,01A,5 is t,t,Ar-kk awl , pre co pd,\A -r-or "1-1- 't-V Lieu /,„.17a.,--6 n, _ 9 ^l -Pv(161--\ t4) 11,C5 14-Lock .611.e_ . _ reg, Lte-eci- pp-v 421,000. A „, faqinea-E-5.- intAAL. _1_0_ \fea,x-c 5.1- 1 LA � ^w~'c~�c�^~ _--__ ___- —_-- ----'------------ '--- -- ---~^ -- ------ ` O V _C / �~~ �i �� u/, ^� ,� � -� /f�. L_- —' ' -- � � - --------'--' 19,d AMENDMENT TO PROMMISSORY NOTE AND MORTGAGE This Amendment to Promissory Note and Mortgage, dated , 2012 (the "Amendment"), amends that certain Mortgage from Andrew C. Beggs and Patricia A. Beggs, husband and wife, as "Mortgagor," to the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, as "Mortgagee," dated May 5, 1992 on real property located in Hennepin County, State of Minnesota and legally described on Exhibit A attached hereto (the "Property") and recorded in the office of the Registrar of Titles Hennepin County Recorder on August 5, 1992 as Document No. 5951485 (the "Mortgage"). This document also amends that certain Promissory Note and Security Agreement from the Mortgagor to the Mortgagee, dated May 5, 1992 (the "Promissory Note"). This is a mortgage amendment, as defined in Minnesota Statutes, Section 287.01, Subd. 2, and as such does not secure a new or an increased amount of debt. IT IS HEREBY AGREED, by and between the parties, as follows: 1. The Mortgagee has made a loan to the Mortgagor in the original principal amount of Twenty-Five Thousand Dollars ($25,000) (the "Loan"), evidenced by the Promissory Note and secured by the Mortgage. The Loan does not accrue interest. 2. The Mortgagee and Mortgagor desire to amend the Promissory Note and the Mortgage so that Mortgagor may pay in full its first mortgage on the Property without being required to repay the Loan in full. 3. The Loan shall be due and payable upon the earlier of: (i) the sale, transfer or other conveyance (both voluntary and involuntary) of the Property; or (ii) , 2032 [insert date which is twenty years after the date of this Amendment]. All other events of maturity of the Loan set forth in the Promissory Note or the Mortgage shall no longer be applicable to the Loan. 4. This Amendment shall not be deemed a waiver of any other terms or covenants of the Promissory Note or the Mortgage. Any forbearance by the Mortgagee in exercising any right or remedy shall not be a waiver of or preclude the exercise of any right or remedy under the Promissory Note and the Mortgage, as amended by this Agreement. 1 408694v2 JAE RC125-1 (D.iS 5. The Promissory Note and the Mortgage shall otherwise continue in full force and effect, in accordance with their terms. (The remainder of this page is intentionally left blank.) 2 408694v2 JAE RC125-1 11) L9 IN WITNESS WHEREOF, the parties have caused this Amendment to be executed as of the day of , 2012. MORTGAGOR: • Andrew C. Beggs Patricia A. Beggs STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of 2012,by Andrew C. Beggs and Patricia A. Beggs, husband and wife. Notary Public 3 408694v2 JAE RC125-1 (fi s1 MORTGAGEE: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By: Suzanne M. Sandahl Its: Chairperson By: Steven L. Devich Its: Executive Director STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) The foregoing was acknowledged before me this day of , 2012, by Suzanne M. Sandahl, the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the corporation, Mortgagee. Notary Public STATE OF MINNESOTA ) COUNTY OF HENNEPIN ) The foregoing was acknowledged before me this day of , 2012, by Steven L. Devich, the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the corporation, Mortgagee. Notary Public 4 408694v2 JAE RC125-1 ' ID (; xJ This Instrument Drafted By: Kennedy & Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (JAE) 5 408694v2 JAE RC125-1 �p 161 EXHIBIT A LEGAL DESCRIPTION Lot 19 and the North 20 feet of Lot 18, Block 9, "Ray's Lynnhurst Addition", Hennepin County Minnesota 6 408694v2 JAE RC125-1 AGENDA ITEM#: 7 REPORT#: 39 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 20, 2012 REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON,HOUSING SPECIALIST NAME,TITLE REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR E,TITLE ACTING DEPARTMENT DIRECTOR ' i � _` I REVIEW: "111 i REVIEWED BY EXECUTIVE DIRECTOR/ tI h l , ITEM FOR HRA CONSIDERATION: Consideration of a proposed settlement of a Housing and Redevelopment Authority Deferred Loan mortgage. I. RECOMMENDED ACTION: By Motion: Approve or deny a proposal made by the owner of 1709 72nd Street West for forgiveness of an $8,249.95 Housing and Urban Development Community Development Block Grant Deferred Loan. II. BACKGROUND On February 10, 1987, the owner of 1709 72nd Street West received a federal Housing and Urban Development (HUD) Community Development Block Grant (CDBG) Deferred Loan (Loan) for $8,249.95 through the Richfield Housing and Redevelopment Authority (HRA). The terms of the Loan require the homeowner to repay the loan in full, at no interest, upon sale of the property. If the original owner remains in the home, the Loan is fully forgiven after 30 years. Due to financial and personal reasons, the owner is now attempting to sell the property to avoid foreclosure. The owner recently received an offer for $147,000. After paying off the first mortgage, home equity line of credit, fees and commissions, closing costs and past bills, the settlement leaves the homeowners approximately 08202012 1709 West 72md St Loan Settlement Request.doc $8,200 short of covering all costs. Forgiveness of the HRA lien would all but eliminate the shortage. If the HRA and the homeowner cannot reach an agreement regarding the payoff of the HRA mortgage, this property is likely to go into foreclosure. As a lien holder, the HRA would have the opportunity to redeem the foreclosure. To do so, however, the HRA would either have to satisfy the outstanding mortgages or negotiate a settlement with those lien holders (the same situation as the current homeowner). III. BASIS OF RECOMMENDATION A. POLICY • The HRA acts to protect its financial interests. • The Mortgage Foreclosure Response Program Procedural Guidelines, states as follows: "Staff will consider short sale offers and negotiate as high of repayment as possible. Action will be taken quickly so as to not disrupt the short sale opportunity and cause the homeowner to enter into foreclosure." • The purpose of the Deferred Loan is to provide resources to low- income homeowners to maintain and improve their homes. To qualify for a no-interest deferred loan, applicants must earn less than 50 percent of the area median income. Deferred Loan recipients typically do not have the financial ability to make costly home improvements on their own. B. CRITICAL ISSUES • The property has a current assessed value of$188,000. • The listed sale price of the home was determined by the listing agent based on comparable sales in the area. • Given the numbers in this situation, it is unlikely the HRA should expect to recover the full value of the lien. • The HRA agreed to subordinate its loan in 2004. • If the HRA declines to settle the loan, the homeowner could face foreclosure. • Neighborhoods in which there are one or more foreclosed and vacant homes have detrimental impacts on the surrounding property values. C. FINANCIAL • The attached letter from the homeowner describes the financial difficulties she faces. • 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 and a secondary lender. • The Deferred Loan Program is funded with Community Development Block Grant (CDBG) money. The HRA established the requirement that a borrower must pay back the loan prior to the 30 term. There is no federal requirement to pay back the funds. • The HRA has received two requests for a short sale settlement in the past two years. In the first request, the HRA received $2,500 of the $25,000 lien. In the second request, the HRA received $1,000 of the $1,577 lien. D. LEGAL • Legal counsel has confirmed the HRA's authorization under a short sale. IV. ALTERNATIVE RECOMMENDATION(S) • Deny the proposed settlement. • Propose a different settlement amount. • Authorize staff to negotiate a settlement amount within certain parameters. V. ATTACHMENTS • Letter from Cheri Freeman Murch, 1709 72nd Street West VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A 7,1 August 3,2012 Julie Urban Housing Specialist City of Richfield 6700 Portland Ave S Richfield,MN 55423 Re: HRA Forgiveness/Reduction 1709 West 721td Street Richfield,MN 55423 Dear Julie Urban, I am requesting to be added to the HRA August 20th,2012 agenda regarding my request for forgiveness or reduction of my lien. I have lived in Richfield for 45 years and have owned my own home in Richfield for 25 years this August. Unforeseen circumstances have caused me to become behind in my mortgage payments and I am facing foreclosure. I am now partially disabled and have lifetime restrictions,I can no longer physically or financially afford my home. Therefore,I have placed my home on the market and I do have an offer of $147,000.00. However,this is not enough to cover the liens and fee's. I respectfully request being place on the HRA August 20th,2012 agenda,to be considered for forgiveness or reduction of the lien I owe the Richfield HRA. Please consider that I have lived in my home for the 25years of the 30 years required for forgiveness of my lien. Gratefully, Cheri Freeman Murch bellacannela444 @comcast.net 612-501-0875 1709 West 72nd Street Richfield,MN 55423 AGENDA ITEM#: 8 REPORT#: 40 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING AUGUST 20, 2012 REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER NAME,TITLE REPORT PRESENTER: CHRIS REGIS, FINANCE MANAGER REVIEWED BY DEPARTMENT d _ ate° DIRECTOR 41 REVIEWED BY HRA EXECUTIVE DIRECTOR: d tr3Tariff 64 _. ITEM FOR HRA CONSIDERATION: Consideration of resolutions approving proposed property tax levy for payable 2013 for , certification to Hennepin County. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolutions approving the 2013 Proposed Housing and Redevelopment Authority Budget and Tax Levy and 2012 Revised Housing and Redevelopment Authority Budget. II. BACKGROUND N/A III. BASIS OF RECOMMENDATION A. POLICY • Minnesota Statutes require adoption of a preliminary levy from each taxing authority. • The budget and accompanying proposed levy for 2013 are ready for consideration. 08202012HRABudget • Even though a pubic hearing for the HRA tax levy is not required by State Statute, this does not preclude the HRA from opening this item up for public discussion if the HRA desires to do so. B. CRITICAL ISSUES • As required by State Statutes, each taxing authority must certify its proposed tax levy for the payable year 2013 to the County Auditor on or before September 15, 2012. C. FINANCIAL • The Proposed 2013 HRA levy represents a 9.36% decrease from the previous year's levy. • The levy as proposed is for the maximum levy established by law of the .0185% of the City's total taxable market value net of the market value exclusion. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATIONS) • The HRA could adopt a preliminary levy less than the one proposed herein. However, that would not provide for programs that are recommended in the 2012 Revised/2013 Proposed budget. V. ATTACHMENTS • Resolution Approving Proposed 2013 Housing and Redevelopment Authority Budget and Certifying the 2013 Tax Levy • Resolution Authorizing Revision of the 2012 Budget of the Housing and Redevelopment Authority of Richfield VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A HRA RESOLUTION NO. RESOLUTION APPROVING PROPOSED 2013 HOUSING AND REDEVELOPMENT AUTHORITY BUDGET AND CERTIFYING THE 2013 TAX LEVY BE IT RESOLVED by the Housing and Redevelopment Authority of the City of Richfield, Minnesota as follows: Section 1. The budget for the Housing and Redevelopment Authority General Fund of Richfield for the year 2013 in the amount of $537,140 is hereby ratified. Section 2. The estimated gross revenue of the Housing and Redevelopment Authority General Fund of Richfield from all sources, including general ad valorem tax levies as hereinafter set forth for the year 2013, and as the same are more fully detailed in the Executive Director's official copy of the budget for the year 2013, in the amount of$451,980 is hereby approved. Section 3. There is hereby levied upon all taxable property in the City of Richfield an ad valorem tax in 2012, payable in 2013 for the following purposes: Housing and Redevelopment Authority $456,617 Section 4. A certified copy of this resolution shall be transmitted to the County Auditor. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 20th day of August, 2012. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary HRA RESOLUTION NO. RESOLUTION AUTHORIZING REVISION OF THE 2012 BUDGET OF THE HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD WHEREAS, Resolution No. 1105 appropriated funds for personal services and other expenses and capital outlay for the Housing and Redevelopment Authority for the year 2011, and WHEREAS, The Executive Director has requested a revision of the 2012 budget as detailed in the 2013 budget document. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority of Richfield, Minnesota as follows: Section 1. That the 2012 appropriation for the Housing and Redevelopment Authority General Fund is revised as follows: $52,350 decrease Section 2. Estimated 2012 gross revenue of the Housing and Redevelopment Authority General Fund from all sources, as the same is more fully detailed in the Executive Director's official copy of the 2013 budget document, are hereby revised as follows: $15,680 decrease Section 3. That the Executive Director bring into effect the provisions of this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 20th day of August, 2012. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary