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101512completeagenda CITY OF RICHFIELD, MINNESOTA MONDAY, OCTOBER 15, 2012 RICHFIELD MUNICIPAL CENTER 6700 PORTLAND AVENUE 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 September 17, 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 contract with Short Elliott Hendrickson Inc. for development of urban design plan to link amenities within Lakes at Lyndale area in amount not to exceed $23,000 S.R. No. 44 B. Consideration of approval of resolution authorizing purchase of real property at 7225 First Avenue through Richfield Rediscovered and New Home Programs contingent upon approval of subdivision waiver by City Council S.R. No. 45 Notes: 4. Public hearing regarding resolution authorizing sale of 7544 Second Avenue to Johnson-Reiland Builders & Remodelers and authorizing execution of contract for private development with Johnson-Reiland Builders & Remodelers for development of single family home under Richfield Rediscovered Program Staff Report No. 46 Notes: 5. Consideration of request for subordination of HRA Transformation Home Loan at 7033 Penn Avenue Staff Report No. 47 Notes: 6. HRA discussion items Notes: 7. Executive Director Report Notes: 8. Claims and Payroll Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES ge,c4#Ced Richfield, Minnesota Regular Meeting September 17, 2012 CALL TO ORDER The meeting was called to order by Chair Sandahl at 7:00 p.m. ROLL CALL HRA Members Sue Sandahl, Chair; Steven J. Quam; Debbie Goettel; and David Gepner Present: HRA Members Doris Rubenstein Absent: Staff Present: John Stark, Acting Executive Director/Community Development Director; Karen Barton, Community Development Manager; and Nancy Gibbs, City Clerk Item #1 APPROVAL OF MINUTES OF (1) SPECIAL HRA/CITY COUNCIL/PLANNING COMMISSION WORKSESSION OF AUGUST 20, 2012; AND (2) REGULAR HRA MEETING OF AUGUST 20, 2012 Commissioner Quam asked that the roll call for the Special HRA/City Council/Planning Commission Worksession of August 20, 2012 be corrected. M/Gepner, S/Goettel to approve the minutes of(1) Special HRA/City Council/Planning Commission Worksession of August 20, 2012; and (2) Regular HRA Meeting of August 20, 2012 as amended. Motion carried 4-0. Item #2 HRA APPROVAL OF AGENDA M/Gepner, S/Quam to approve the agenda. Motion carried 4-0. HRA Meeting -2- September 17,2012 Item #3 CONSENT CALENDAR A. Consideration of approval of resolution authorizing purchase of real property located at 6310 Irving Avenue through New Home Program S.R. No. 41 HRA RESOLUTION NO. 1130 RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6310 IRVING AVENUE This resolution appears as HRA Resolution No. 1130. M/Quam, S/Goettel to approve the Consent Calendar. Motion carried 4-0. Item #4 PUBLIC HEARING REGARDING RESOLUTION AUTHORIZING SALE OF 7220 RUSSELL AVENUE TO MATTHEW AND JENNIFER LUX AND CONTRACT FOR PRIVATE DEVELOPMENT WITH MATTHEW AND JENNIFER LUX FOR CONSTRUCTION OF SINGLE FAMILY HOME UNDER RICHFIELD REDISCOVERED PROGRAM S.R. NO. 42 Community Development Manager Barton presented Staff Report No. 42. Tom Johnson, 7226 Russell Avenue, asked why there needed to be a meeting to sell this property. Community Development Manager Barton explained that they need for a public hearing and resolution to authorize the sale of this property. Jennifer Lux expressed how excited her family is to be moving back to Richfield. M/Goettel, S/Quam to close public hearing. Motion carried 4-0. M/Goettel, S/Sandahl that the following resolution be adopted and that it be made part of these minutes: HRA RESOLUTION NO. 1131 RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 7220 RUSSELL AVENUE TO ENDRES CUSTOM HOMES, INC This resolution appears as HRA Resolution No. 1131. Motion carried 4-0. HRA Meeting -3- September 17,2012 Item #5 CONSIDERATION OF CONTRACT FOR PRIVATE DEVELOPMENT BETWEEN HRA AND NOILYA MUHARAMOVA FOR REDEVELOPMENT OF 6500 LOGAN AVENUE UNDER RICHFIELD REDISCOVERED PROGRAM AND SUBORDINATION REQUEST OF HRA'S LIEN TO ALLOW APPLICANT TO SECURE CONSTRUCTION FINANCING S.R. NO. 43 Community Development Manager Barton presented Staff Report No. 43. M/Gepner, S/Goettel to approve contract for private development between HRA and Noilya Muharamova for redevelopment of 6500 Logan Avenue under Richfield Rediscovered Program and subordination request of HRA's lien to allow applicant to secure construction financing. Motion carried 4-0. Item #6 HRA DISCUSSION ITEMS Commissioner Quam asked if staff had any information on the mortgage amendment from the previous meeting. Acting Executive Director Stark responded that staff will be sending a memo addressing the issue. Chair Sandahl asked for an update on the housing study. Acting Executive Director Stark explained staff is currently interviewing facilitators and talking with experts. He continued that he hopes to have a committee named and ready by January. Item #7 EXECUTIVE DIRECTOR REPORT None. Item #10 CLAIMS AND PAYROLL M/Quam, S/Gepner that the following claims and payrolls be approved: U.S BANK 09/17/2012 Section 8 Checks: 122391-122480 $ 144,447.76 HRA Checks: 31558-31581 $ 260,114.60 TOTAL $ 404,562.36 Motion carried 4-0. ADJOURNMENT HRA Meeting -4- September 17,2012 The meeting was adjourned by unanimous consent at 7:23 p.m. Date Approved: October 15, 2012 Suzanne M. Sandahl Chair Nancy Gibbs John Stark City Clerk Acting Executive Director AGENDA ITEM# 3rd REPORT# 44 =NA" STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING OCTOBER 15, 2012 REPORT PREPARED BY: KAREN BARTON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAME,TITLE REPORT PRESENTER: KAREN BARTON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: / URE REVIEWED BY EXECUTIVE DIRECTOR: PT, yew ITEM FOR HRA CONSIDERATION: Consideration of a contract with Short Elliott Hendrickson Inc. (SEH) for the development of an urban design plan to link amenities within the Lakes at Lyndale area. I. RECOMMENDED ACTION: By Motion: Approve the contract with Short Elliott Hendrickson Inc. (SEH) for the development of an urban design plan to link amenities within the Lakes at Lyndale area in an amount not to exceed $23,000.00 II. BACKGROUND The Lakes at Lyndale Area considered to be the City's "downtown", is centered around the intersection of 66th Street and Lyndale Avenue. A redevelopment plan for the area was developed in the 1990's. Since that time, a number of significant developments have occurred, including City Bella apartments, Woodlake Centre, The Oaks on Pleasant apartments, The Pines apartments, and most recently Lyndale Station (LA Fitness), Lyndale Plaza apartments, Pizza Luce, and Lyndale Gardens. In addition to the significant redevelopment, the area is home to Richfield Lake, Woodlake Nature Center, several park areas (Little Bob's, City Bella, The 10152012 Lakes at Lyndale Connectivity Plan Contract Oaks/Pines sculpture gardens), as well as many pieces of sculpture throughout the area. When looking at the area as a whole, it is apparent that there is a lack of connectivity between the amenities. In an effort to maximize the use and enjoyment of these amenities, staff issued a request for proposals (RFP) for the development of a master urban design plan to establish trail connections and improvements, as well as improving signage and creating place-making for all users of the area, including pedestrians, bicyclists, public transit, and motor vehicles. Four firms responded to the RFP, each offering comprehensive proposals. After reviewing and discussing each of the proposals, staff is recommending the Housing and Redevelopment Authority (HRA) contract with Short Elliott Hendrickson Inc. (SEH) to develop the plan in an amount not to exceed $23,000, of which $10,962.66 will be paid for through the Metropolitan Council Pre-Development Grant. III. BASIS OF RECOMMENDATION A. POLICY • 2008 Richfield Comprehensive Plan Goals and Policies: o Develop the Lakes at Lyndale area as a City Center o Establish a land use pattern and supporting infrastructure that creates a "walkable"environment o Providing quality parks and recreation areas and trails and walkways that connect the community o Recognizing the importance of the Lakes at Lyndale area as the community center for commerce. o Continue to develop and redevelop the Lakes at Lyndale area as a mixed-use center of living, commerce and recreation. B. CRITICAL TIMING ISSUES • Staff would like to have the connectivity plan completed prior to Lyndale Gardens beginning site development. C. FINANCIAL • $10,962.66 in funding is available through the Met Council LCA Pre- development grant to pay a portion of SEH's fee. • The remaining approximately $12,000 would be paid for through HRA funds, which are available. D. LEGAL • HRA legal staff has reviewed the contract. IV. ALTERNATIVE RECOMMENDATION(S) • Do not approve the contract V. ATTACHMENTS • Map of the Lakes at Lyndale Area • Draft contract with SEH VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A �623 JA-1 i 1 ) I 1 `x F :r' r. X'' ) . 1 1 !. �� 63TH STREET ", . ' ' RFIELD 1 x! 0 " ARK ,�:. ,, �.�A PARK ,� Ky; a 1 +`w 14.,'.7,M4,41 .�•. i 64TH STREET , �y�• �e ti i `� • ` dye, ,, .i..4,,_ 1 RICHFIELD LAKE n,' , , 1 1 .-0' 6,5TH STREET 1 , i -', 1 3 SEX. , J 2 0 OFFICE I)is 4 x _ _ U __1. 35W=` -=-:_._____._ ) 66THS ET ""'--L 0 : = THE 1 :- 0 it KEY W ' 1 i 7 1 g RAMP Redevelopment Opportunities 5 ) Previously Developed e \ / /� . =_ Planned Bike Route 9i, f 4 1 5 •_== Bus route WOOD LAKE � / i ) 0 Bus Shelter ��' '� 6 67TH STREET, NATURE CENTER F6 II •° `; Scale �� LITTLE { BOBS ) 0 200 400ft North -s. PARK 1 WOOD LAKE , PREVIOUSLY DEVELOPED PROPERTIES 1. Lakeshore Drive Condominiums- 178 units 5. Oaks on Pleasant- 138 units 2. Woodlake Point Condominiums - 157 units 6. Gramercy/VFW- 160 units 3. Market Village 52,844SF retail& 7. Woodlake Centre-290,500 SF retail,office,and restaurant Village Shore Apartments-178 units 8. City Bella-18,000SF retail- 157 units/13 town homes 4. The Pines-78 assisted living units 9. Villas on Lakeshore Drive- 16 units LAKES AT LI'NDAL> LAKES AT LYNDALE CONNECTIVITY PLAN CONTRACT AGREEMENT This agreement outlines the Scope of Services, Fee Schedule and other elements which together constitute an agreement(Agreement) between the City of Richfield Housing and Redevelopment authority (HRA) and Short Elliott Hendrickson (SEH) for professional planning services for the Lakes at Lyndale connectivity urban design plan, hereinafter referred to as the Project. The HRA and SEH agree as to set forth below: A. Basic Services =_ SEH basic services for the Project are: Project Approach =— SEH will conduct a comprehensive, multifaceproacIfghat will integf experiential and technical parameters of public spy_unalnd design foeveloping the projects connectivity master plan. The core of i-Tioacii will utilize three primary activities: site and best practices ana sis; build upon bus work; and development of concepts and recommendations. This faceted appro �Ialances design creativity with the pragmatic aspects of ADA and ' I ff s e maintenamowt6 achieve a Connectivity Plan that is both aspirationndxnplemtable. Work Plan Task 1 –Study Asssme 1.1. Project y and bcgrouna .m.-election. Gather and utilize previous study findings to b derstithe HRA's project outcomes. Review existing i structure to--e 'fy po- aLconflicts,public and private, early in the planning proms. 1.2. KiclMftmeeting witRA staff. Introduce project team and HRA staff, distribute contact imation, duss process organization, schedules and establish project expectationd mild ones. Critical background information will also be discussed and distribut d 1.3. Prepare a base crap for the project area using data and information provided by the HRA. 1.4. Site visit/walking prototypical tour(this session to be coordinated with kick-off meeting). Project team and HRA staff will visit the district area during the daytime to confirm the study area and assess existing conditions. SEH will coordinate attendance of key stakeholders to inform the project team with useful feedback and opinions of the existing conditions. SEH will also explore and assess the area by bike and on foot at other times of the day, to enhance their understanding of multimodal issues and opportunities. 1.5. Prepare assessment maps, site analysis plan, and prototypical conditions graphics. Develop plans of the project area based on information gathered, as well as a site analysis map displaying site forces and issues, and identifying opportunities and challenges of the study area. The plans will consider and illustrate land uses,public infrastructure, and area amenities. SEH will prepare prototypes of typical conditions based on site and connections conditions. These prototype examples will highlight relationships within the streetscape and public-private realm interface, including user accessibility, amenities, landscaped areas,personal safety, and transit conditions. 1.6. Present and discuss site analysis and inventory maps with HRA staff. Discuss opportunities and challenges, and brainstorm creative idea_=:o -pgssible connectivity/amenity solutions using a complete streets .ign approach. Brainstorm session will include a precedent/visual iine! :entation of best practices from similar projects, including wayfindirrsystenas that could efficiently be implemented for the Lakes at Lyta?ea. Task 2—Prepare Connectivity Plan = - 2.1 Prepare an outline of urban design principles the a incorporated as an amendment to the Lakes at Lyndale Area Plan. 2.2 Prepare connectivity plan ideas bun feedback froaff. SEH will collaborate with HRA staff in developing concfor assessingprototypical conditions, and organize these into a series of tylogieas inteection crossings, mid- block crossings, and trail heads, whicwilke ass' o various locations within the project area. T.Ac i cy ,° will be ill-is-rated base on urban design characteristics, type and level oihancet, and techal requirements such as ADA, City standards, etc illustra ns will inclu-40an and section graphics of safe multimodal connec pt n,. tpportunit)Tocations for public amenities, public art, sigria _e,c a _way E®_ fe: , d on location within the study area. 2.3 Iden °i a su e/stredrscape furnishings to be incorporated into the various togies such assit sh7 -bike racks, and benches. 2.4--1-'repare a prelimina�nnectiy framework for the master plan that locates specipologies wire the project area. 2.5 Facilitategmtaff meetia to review concept ideas and gather feedback. SEH will present the wept alrnative and prepare a ranking matrix based on ease of implementatical characteristics, access, and connectivity. 2.6 Facilitate open hunse. Present concept ideas to the public and gather feedback from the community and HRA staff SEH will also facilitate an on-line visual survey for the public to submit their comments and concerns (if desired by the HRA). 2.7 Refine concept ideas into a final connectivity plan. Based on feedback from the community and HRA staff, SEH will prepare a strategy plan for implementation policies based on feasibility and functionality depicting streetscape amenities, landscaped zones, public amenities, art opportunities, and wayfinding locations. 2.8 Present preferred plan to policy makers. Meet with key policy makers to present the preferred connectivity plan, urban design principles, and implementation strategies, and gather feedback prior to assembling a final report. 31 I Task 3—Prepare plan report 3.1 Refine connectivity plan. SEH will refine the connectivity plan approach and implementation strategies based on feedback from policy makers and HRA staff. The final plan will include refined urban design typologies, including preferred approach for public amenity locations and opportunities,trail connections and transit configurations, signage, and wayfinding character. 3.2 Prepare and format the plan report for adoption as an amendment to the Lakes at Lyndale Area Plan. The report will include compiling site anysis findings, concept development process, and implementation strategies. 3.3 Prepare urban design principles. These principles will s as the guiding tool for future connectivity improvements to the Lakes at Lyrle-airRa, 3.4 Submit draft report to HRA staff for review. SEH v gathedback from HRA staff based on the draft report submittal. 3.5 Prepare final report. SEH will refine and ass Able the final plan report based on HRA staff feedback, and package for a fibmissi .B. Additional Services The HRA and SEH may agree in writs _ _ mend this Agnent for additional services related to the Project and compensation ervices. T l owing services have not been included in the basic services bare awe uponf'itten authorization: Task 2 2.9 Prepare an illustaive perstive sketchepicting design concepts applied to specific locat thin theNoject area. Task 3 3.6 Optima. Op---Sceil. e. S1 H ill facilitate an additional open house for receiving p: c input on the. conilativity plan prior to submitting final draft report to the Fil This will incl&produIn of three to four large scale (30" x 42") presei t kn graphics rr untec on foam core boards. 3.7 Optional Fowl Presjjation of Plan Report. SEH will present the final plan to the HRA, City Co i�d Planning Commission (joint session) for approval of the plan amendment C. Fees for Professional Services SEH agrees to complete the scope of work contained in Paragraph A in exchange for professional fee compensation as noted below. The HRA agrees to pay SEH for services rendered as follows: 1. For SEH's Basic Services described in Paragraph A above, a fee not to exceed nineteen thousand nine hundred ninety-four dollars ($19,994.00) including reimbursable expenses. 2. For SEH's Additional Services described in Paragraph B, a fee schedule as follows: a. Task 2.9 - $1,400 b. Task 3.6 - $ 880 c. Task 3.7 - $ 500 3. Statements will be submitted to the HRA on a monthly bates as work is completed and shall be payable within 30 days in accordance with - ,reement. D. HRA responsibility The HRA shall be responsible for the following: = — 1. Provision of base map data and inform . 2. Mailing lists, printing, postage and the m i of itions for pub meetings. 3. Arrangements for public meetings. 4. Reproduction of all interim re, orts for distributimms deemed necessary. E. Insurance SEH shall maintain insurance as follows ab .11 i es d°,^ the term of this contract: Statutory workers corm and employ s' liabilitinsurance coverage. Comprehensive gen f liabili surance co rage and automobile liability insurance coverage in the surfru&ot less man $1,000,00ftper policy. F. ComPlet chediI The sadces of SEH Ma.egin a RARA approval and will, absent of causes beyond the eor SEH be compp eid witli Twelve months from notice-to-proceed date. At the beginM of the Pro Wt, SEH will prepare an overall Project schedule identifying meetings, task cpletionates, etc. SEH will continually update the Project schedule throughout the coursamie work. G. Sub- Consultants To complete aspects of the Project as described in Paragraph A, SEH shall make separate agreements with other qualified firms listed in this paragraph. SEH shall coordinate the work of Sub-Contractors as part of the work of the Project. SEH shall not remove the involvement of identified firms or add the involvement of unmentioned firms without written consent from the HRA. The identified Sub-Consultants for the Project are: Signia Design 311 -to H. Affirmative Action SEH agrees not to discriminate by reason of age, race religion, color, sex, national origin, citizenship, disability, veteran status, or other status protected by federal, state, local, or other law. SEH I. Indemnification SEH agrees to indemnify, defend and hold the HRA harmless frorn<_and against any and all claims, liabilities, suits, demands, losses, costs and expense - ling but not limited to, reasonable attorneys' fees and all legal expenses and feeurred through appeal, and all interest thereon, accruing or resulting to any and all pensns or any other legal entities on account of any damages or losses to propertypersoncluding injuries or death, or economic losses, arising out of the Projectrthis cont- =except that SEH shall not be entitled to indemnification to the extsuch damages or 1 .are found by a court or forum of competent jurisdiction to used by EH's negligeiifs or omissions. J. Term, termination, successors and/or assigns 1. The term of this contract shall bcent with the= rauthorized and shall be in accordance with the schedu to b'shed bevy- the HRA and SEH. 2. Either party may terminate this Agerndtt byter notice to the other party at its address by c : nail at least!(10) day 5rior to the date of termination. 3. Neither the III nor sun shall assigisublet or transfer its interest in this Agreement t the Witten consente other. 4. The time schedtMthal t pply and/oume extensions will be allowed for any circumns beyce 5. T. Agree- 4 hall_- •verned by all applicable laws. 6pon termina j EH b entitled to fees eared through the effective date of •t n ination. K. Authuxation IN WITNESS TH) _ the HRA and SEH have made and executed this Contract for Professional Service- This day of , 2012 The Housing and Redevelopment Authority, in and for the City of Richfield HRA Chair 3C1 HRA Executive Director Short, Elliott, Hendrickson Inc. Name I'i AGENDA ITEM# 3B REPORT# 45 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING OCTOBER 15, 2012 REPORT PREPARED BY: KATE AITCHISON/JULIE URBAN, HOUSING SPECIALISTS NAME,TITLE REPORT PRESENTER: KAREN BARTON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAME,TITLE V. DEPARTMENT DIRECTOR REVIEW: SIGNA%RE REVIEWED BY EXECUTIVE DIRECTOR • J/ ITEM FOR HRA CONSIDERATION: Consideration of a resolution authorizing the purchase of real property located at 7225 1st Avenue through the Richfield Rediscovered and New Home Programs. I. RECOMMENDED ACTION: By Motion: Approve the attached resolution authorizing the purchase of real property located at 7225 1st Avenue through the Richfield Rediscovered and New Home Programs contingent upon approval of a subdivision waiver by the City Council. II. BACKGROUND The owner of 7225 1st Avenue has expressed an interest in selling the property to the Housing and Redevelopment Authority (HRA). The one story house built in 1930 has two bedrooms, a total of 976 square feet, and a two-car, attached garage. The house is located in the rear of the 100-foot wide lot adjacent to the alley. An independent substandardness evaluation was conducted and concluded that the house contains many code and structural deficiencies that would be difficult to correct. The property would be better served with the house removed and the lot split into two, fifty-foot wide lots and made available for the construction of two new houses. 10152012 7225 1st Avenue Acquisition The lot is 100 feet wide and 127 feet deep for a total of 12,700 square feet. Although the lots were originally platted as separate lots, they were combined and the house built across both lots. A subdivision waver will be required to create two separate lots. A survey is being conducted and an application will be made to the City for a subdivision waiver to split the lot equally. The new lots would be 6,350 square feet each. One lot would be marketed through the Richfield Rediscovered Program for a market-rate new construction and the second would be made available through the New Home Program to construct a new single family home affordable to a household earning 80 percent of the Twin Cities Area Median Income (AMI). HRA staff obtained an appraisal in the amount of$105,000 for the property. A Purchase Agreement was submitted to the owner and accepted. The offer is contingent upon HRA approval, and City Council approval of a subdivision waiver. The agreed-upon purchase price of$105,000 plus closing costs will be paid through the HRA's Richfield Rediscovered Program and New Home Program. This expense is provided for in the 2012 HRA Budget. III. BASIS OF RECOMMENDATION A. POLICY • The 2008-2018 Richfield Comprehensive Plan states as policy: • Encourage the creation of"move-up" housing through new construction and home remodeling. • Promote the development of a balanced housing stock that is available to a range of income levels. • Through the City's Richfield Rediscovered Program, the HRA purchases and removes substandard and functionally obsolete housing and replaces it with newer, higher valued homes. • Through the City's New Home Program, the HRA purchases and removes substandard and functionally obsolete housing and replaces it with new homes designed for families and made available to households earning no more than 80 percent of the AMI. B. CRITICAL TIMING ISSUES • The Purchase Agreement was submitted contingent upon HRA approval. • The Purchase Agreement is also contingent on approval of a subdivision waiver by the City Council. Consideration of the subdivision waiver is tentatively scheduled on the City Council agenda for October 23, 2012. • The HRA would close on the property following approval of a subdivision waiver. C. FINANCIAL • If the lot can be split into two 50-foot wide lots, the purchase price of $105,000 is reasonable. • Funding for this acquisition through the Richfield Rediscovered and New Home Programs is in the HRA's 2012 Budget. • There are insufficient funds remaining in the Richfield Rediscovered Budget to purchase the property at this time. Since the property would be split into two separate buildable lots, staff is recommending that the purchase price of the property be split equally between the Richfield Rediscovered budget and the New Home budget, thereby providing the opportunity to build a new house through each program. • As an alternative, there are sufficient funds in the New Home Budget to purchase the property, which would result in 2 new affordable homes being built on the lots. D. LEGAL • Legal Counsel has prepared the Purchase Agreement. IV. ALTERNATIVE RECOMMENDATION(S) • Do not authorize the purchase of the property. • Authorize purchase of the property utilizing New Home funds only. V. ATTACHMENTS • Resolution • Photo of existing structure • Purchase Agreement VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A HRA RESOLUTION NO. RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7225 1ST AVENUE WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota ("the HRA") desires to purchase certain real property pursuant to and in furtherance of the New Home Program, said property being described as: 7225 1st Avenue South Legal: Lots 11 and 12, Block 1, Scheubles First Addition, Hennepin County, Minnesota WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to acquire real property within its area of operation; and WHEREAS, Richfield Rediscovered Program funds are available for acquisition purposes. NOW THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield: 1. The purchase price for the property identified is approved at $105,000, plus closing costs, not to exceed $110,000. 2. The Chairperson and Executive Director are authorized to execute a Purchase Agreement and to take other actions necessary to purchase the property for the amount set forth in this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota on this 15th day of October, 2012. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary 3i),), - 7225 1st Avenue South 8 . J,t .. -; . ;. ,f ; --) 'fi tt� �SF,•1'� i.. Ric .. <-i,..• •— „.,f, �j'� I "t ••A �YF' /Y't�.r. �'' - f ` c .Y•�9.;R; , y,.- �' t+:. ti'1 ]k4+';�I":3 .'�Y i T e ..J(-Y _14 a1 "• • 3,5-3 PURCHASE AGREEMENT THIS PURCHASE AGREEMENT (the "Agreement") is made as of this day of ..2:1 , 2012,,by and between Troy J. Pinlgree, a single person ("Seller") and the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota (`RA"or"Buyer"). RECITALS Seller is the owner of property located at 7225 1' Avenue South, Richfield, Minnesota, which is legally described on the attached Exhibit A("Property"). The Property includes includes all plants,shrubs and trees,storm windows and/or inserts, storm doors,screens,awnings,window shades,blinds, curtain-traverse-drapery rods, attached lighting fixtures with bulbs,plumbing fixtures,water heater,heating system,humidifier,central air conditioning,electronic air filter,automatic garage door opener with controls,water softener, cable television outlets and cabling,and built-ins, including dishwasher,garbage disposal,trash compactor,oven(s),cook top stove,microwave oven,hood-fan,intercom and installed carpeting located on the premises which are the property of Seller. The property also includes the following personal property:NONE. Seller is responsible for removal of all personal property. Seller may remove the following items,provided Seller does not cause any unnecessary damage to the Property: r AGREEMENT 1. Offer/Acceptance for Sale of Property. The Seller agrees to sell to the HRA the Property and the BRA agrees to purchase the same,according to the terms of this Agreement. 2. Purchase Price for Property and Terms. A. PURCHASE PRICE: The total purchase price for the Property is one hundred and five thousand dollars and 00/100ths Dollars ($105,000.00) (the "Purchase Price"). B. TERMS: (1): EARNEST MONEY. The sum of zero Dollars ($0) (the "Earnest Money")shall be paid by the Buyer to the Seller. (2): BALANCE DUE SELLER. Buyer agrees to pay by check or electronic transfer of funds on the date of closing on the Property (the "Closing Date") any remaining balance of the Purchase Price due to Seller according to the terms of this Agreement. 1 411561v1 CBRItC125•65 (3): DEED/MARKETABLE TITLE. Subject to performance by Buyer, Seller agrees to execute and deliver a Warranty Deed or. Personal Representative's Deed conveying marketable title to the Property to Buyer, subject only to the following exceptions: a. Building and zoning laws, ordinances, state and federal regulations. b. Reservation of minerals or mineral rights to the State of Minnesota, if any. c. Public utility and drainage easements of record which will not interfere with Buyer's intended use of the Property. (4): DOCUMENTS TO BE DELIVERED AT CLOSING BY SELLER. In addition to the Warranty Deed required at paragraph 213(3) above, Seller shall deliver to the Buyer: a. Standard form Affidavit of Seller. b. A"bring-down"certificate, certifying that all of the warranties made by Seller in this Purchase Agreement remain true as of the Closing Date. c. Certificate that Seller is not a foreign national. d. If an environmental investigation by or on behalf of the Buyer discloses the existence of petroleum product or other pollutant, contaminant or other hazardous substance on the Property, either (i) a closure letter from the Minnesota Pollution Control Agency (MPCA) or other appropriate regulatory authority that remediation has been completed to the satisfaction of the MPCA or other authority; or (ii) Agreement for remediation/indemnification and security as the PIRA may require. e. Well disclosure certification,if required,or,if there is no well on the Property, the Warranty Deed given pursuant to paragraph 2B(3) above must include the following statement: "The Seller certifies that the Seller does not loiow of any wells on the described real property." If Seller is unaware of the location of a well and there is a building permit issued for the Property prior to installation of a City water system, the Seller agrees to have a licensed well contractor examine the Property for purposes of locating a well, 2 411561v1 CFSRRC125.65 3S Seller agrees to have all wells located on the Property, which are not in use,sealed by a licensed well contractor at Seller's expense. Seller agrees to escrow funds on the Closing Date for the purpose of locating and sealing wells if circumstances prohibit locating and sealing wells prior to closing. f. Any other documents reasonably required by the BRA's title insurance company or attorney to evidence that title to the Property is marketable and that Seller has complied with the terms of this Purchase Agreement. 3. Contingencies. Buyer's obligation to buy is contingent upon the following: a. Buyer's determination of marketable title pursuant to paragraph 4 of this Agreement; b. Buyer's determination, in its sole discretion, that the results of any environmental investigation of the Property conducted pursuant to this Agreement are satisfactory to Buyer; c. The City has given final and unconditional approval to a subdivision waiver dividing the Property into two parcels. Promptly following the execution of this Agreement, the Buyer will prepare an application for subdivision waiver which will be cosigned by the Seller and filed with the City. The Buyer will be responsible for all required application fees. d. The parties acknowledge that the Richfield zoning ordinance requires that lots in the R district meet certain minimum lot width, and area requirements. If these standards are not met, one or more variances will be necessary prior to construction of a new dwelling on the property. If the City does not issue all variances necessary to make the property a buildable lot within the meaning of the zoning ordinance,the Buyer at its sole discretion may cancel this Purchase Agreement; and e. Approval of this Agreement by the HRA's Board. Buyer shall have until the Closing Date to remove the foregoing contingencies. The contingencies at a., b., c., and d. are solely for the benefit of Buyer and may be waived by Buyer. The contingency at e. may not be waived by either party. If Buyer or its attorney gives written notice to Seller that the contingencies at a.,b., c., d.,and e. are duly satisfied or waived,the Buyer and Seller shall proceed to close the transaction as contemplated herein, If one or more of Buyer's or Seller's contingencies is not satisfied, or is not satisfied on time,and is not waived, this Purchase Agreement shall thereupon be void at the written option of Buyer and 3 4115ulvl Ci RRC125.65 3 OP Seller shall return the Earnest Money, if any, to Buyer, and Buyer and Seller shall execute and deliver-to each other a termination of this Agreement. As a contingent Purchase Agreement, the termination of this Agreement is not required pursuant to Minnesota Statutes, Section 559.21, et, seq. 4. Title Examination/Curing Title Defects. As soon as reasonably possible after execution of this Agreement by both parties, (a) Seller shall surrender any abstract of title and a copy of any owner's title insurance policy for the property, if in Seller's possession or control, to Buyer or to Buyer's designated title service provider;and (b) Buyer shall obtain the title evidence determined necessary or desirable by Buyer, The Buyer 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 Seller shall have 90 days from the date of such objection to affect a cure;provided,however, that the Seller shall have no obligation to cure any objections, and may inform Buyer of such. The Buyer 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. 5. Environmental Investigation. The Seller warrants that the Property has not been used for production, storage, deposit or disposal of any toxic or hazardous waste or substance,petroleum product or asbestos product during the period of time the Seller has owned the Property. The Seller further warrants that the Seller has no knowledge or information of any fact which would indicate the Property was used for production, storage, deposit or disposal of any toxic or hazardous waste or substance, petroleum product or asbestos product prior to the date the Seller purchased the Property, Notwithstanding the above, the Seller's warranty regarding petroleum products does not preclude the presence of heating oil or other similar products used as a heating fuel for the dwelling but the Seller does warrant that if there was a fuel tank on the Property used for the storage of heating oil or other similar product,the Seller has no knowledge of any leak in the tank or contamination caused thereby. Seller hereby grants to Buyer and Buyer's agents a license to enter and evaluate the Property for the purpose of conducting an environmental assessment. The Buyer is required to perform an environmental assessment prior to committing federal Community Development Block Grant (CD)3G) funds. Further,the Buyer or Buyer's agent shall have the right pursuant to the license to bring persons and equipment onto the Property,make inspections and perform tests and analyses as Buyer may deem reasonable to determine the presence of any toxic or hazardous waste, substance, or petroleum product or asbestos product, and ascertain soil conditions on the Property- Buyer shall bear the cost of the environmental assessment. If the results of the environmental assessment are not to the satisfaction of the Buyer, including a release from environmental conditions related to the commitment and expenditure of CDBG funds,the Buyer at its sole discretion may cancel this Purchase Agreement, If the Buyer cancels this Purchase Agreement pursuant to this provision, the Buyer shall restore the Property to its original 4 41 156 l v1 curt 5 0125-65 3 condition or nearly so as is reasonably practicable. 6. Real Estate Taxes and Special Assessments. Real estate taxes payable in the year of closing will be pro-rated between the Buyer and Seller to the Closing Date. Seller shall pay all real estate taxes payable in previous years, the entire unpaid balance of special assessments, and all installments of special assessments levied and pending, including special assessments installments payable after the year of closing. Seller also agrees to pay all assessments related to service charges furnished to the Property prior to the Closing Date(e.g., delinquent water or sewer bills, removed or diseased trees), including those charges levied, pending, or certified to taxes payable in the year of closing. If closing occurs prior to the date the amount of real estate taxes due in the year of closing are available from Hennepin County, the current year's taxes will be pro-rated based on the amount due in the prior year. 7. Closing Date. The Closing Date will be on or before December 1, 2012. Delivery of all papers and the closing shall be made at the offices of HRA,6700 Portland Avenue South, Richfield,Minnesota 55423, or at such other location as is mutually agreed upon by the parties. All deliveries and notices to HRA shall be made to the above address and marked to the attention of Housing Specialist. 8. Possession/Utilities/Removal of Property/Escrow. (a) Possession. The Seller agrees to deliver possession not later than the Closing Date. (b) Utilities. City water and sewer charges, electricity and natural gas charges, fael oil and liquid petroleum gas shall be pro-rated between the parties as of the Closing Date. Seller shaft arrange for final readings as of the Closing Date.' (c) Personal Property. The Seller agrees to remove all debris and all personal property not included herein from the Property before the possession date. Personal property not so removed shall be deemed forfeited to and shall become the property of the Buyer. The Buyer may inspect the Property immediately prior to closing and deduct from the purchase price payable at closing an amount reasonably necessary to pay for the cost of removal of any debris or personal property then remaining on the Property. The provisions of this paragraph shall not merge with the deed and shall survive closing on the property. (d) Escrow. Seller agrees that, at closing, the HRA may retain Five Hundred Dollars ($500.00) from the purchase price for the Property as an Escrow for payment of personal property removal, disposal charges and utility charges. The retained amount, less deductions provided for this in paragraph 8, will be delivered to Seller no later than 60 days following the Closing Date or delivery of possession,whichever is later.Said funds shall be held by Kennedy & Graven, Chartered, as Escrow Agent,pursuant to the terms of the Escrow Agreement attached here as Exhibit C. (e) Amounts Due. The HRA's ability to deduct amounts due under this paragraph from the retained escrow is not exclusive but is hi addition to the ERA's rights at law and equity 5 411561111 CBRRC125-65 3fr' to collect such amounts from Seller. The Seller is responsible for the amounts due under this paragraph even if: (i)the HRA neglects to deduct the amount from escrow; or(ii)the escrowed amount is insufficient to pay all amounts due under this paragraph B. 9. Seller Warranties. (a) Sewer and Water. Seller warrants that the Property is connected to City sewer and City water. (b) Mechanics' Liens. Seller warrants that,prior to the closing, Seller shall pay in full all amounts due for labor, materials, machinery, fixtures or tools furnished within the 120 days immediately preceding the closing in connection with construction, alteration or repair of any structure upon or improvement to the Property. (e) Notices. Seller warrants that it has not received any notice from any governmental authority as to violation of any law, ordinance or regulation in connection with the Property. (d) Tenants. Seller warrants that the Property is not now occupied by tenants and was not occupied by tenants at the time the Seller first received the Buyer's written offer to purchase the Property. (e) Broker Commission. Seller represents that it has utilized the services of a real estate broker or agent in connection with this Purchase Agreement and the transaction contemplated by this Purchase Agreement. Seller agrees to pay the commission and any other fees charged by its broker or agent on the Closing Date. Seller agrees to indemnify, defend, and hold harmless the Buyer against any obligation or liability related to agreements, arrangements, or understandings made or claimed to have been made by Seller with any third person. (i) Structures. The Seller warrants that the buildings, if any, are entirely within the boundary lines of the Property. The parties acknowledge that the Property is being sold in "as is" condition relating to the structural, operational,and mechanical systems. 10. Closing Costs/Recording Fees/Deed Tax. The HRA will pay:(a)the closing fees charged by the title insurance or other closing agent, if any, utilized to close the transaction contemplated by this Agreement; (b)fees for title evidence obtained by the BRA;and (c) the recording fee for the deed transferring title to the IIA. Seller will pay all other fees normally paid by sellers, including (a) any transfer taxes,recording fees and Well Disclosure fees required to enable the HRA to record its deed from Seller under this Agreement, and (b) fees and charges related to the filing of any instrument required to make title marketable. Each party shall pay its own attorney fees. 11, Inspections. From the date of this Agreement to the Closing Date, BRA, its employees and agents, shall be entitled to enter upon the Property to conduct such surveying, inspections, investigations, soil borings and testing, and drilling, monitoring, sampling and testing of groundwater monitoring wells, as the HRA shall elect; provided, that Seller is given at 6 411561/,1 CI3RRC125.65 least 24 hours'notice. 12. Risk of Loss. It there is any loss or damage to the Property between the date hereof and the Closing Date,for any reason including fire,vandalism,flood,earthquake or act of God,the risk of loss shall be on the Seller. If the Property is destroyed or substantially damaged before the closing date,this Purchase Agreement shall become null and void,at the MA's option. At the request of the I-IRA, Seller agrees to sign a cancellation of Purchase Agreement. 13. Default/Remedies. If the Buyer defaults in any of the covenants herein, the Seller may terminate this Purchase Agreement, and on such termination all payments made hereunder shall be retained by the Seller as liquidated damages, time being of the essence. This provision shall not deprive either party of the right to enforce specific performance of this Purchase Agreement,provided this Purchase Agreement has not terminated and action to enforce specific performance is commenced within six months after such right of action arises. In the event the Buyer defaults in its performance of the terms of this Purchase Agreement and Notice of Cancel lation is served upon the Buyer pursuant to Minn.atg. Section 559.21,the termination period shall be thirty(30)days as permitted by Minn. Sta., Section 559.21,Subd.4. 14. Notice. Any notice, demand, request or other communication which may or shall be given or served by the patties,shall be deemed to have been given or served on the date the same is personally served upon one of the following indicated recipients for notices or is deposited in the United States Mail, registered or certified, return receipt requested, postage prepaid and addressed as follows; SELLER: Troy P ingree 7685 Gibralter Terrace • Apple Valley,MN 55124 BUYER: Housing and Redevelopment Authority of the City of Richfield Attn: Housing Specialist 6700 Portland Avenue South Richfield, MN 55423 AGENT: Kennedy& Graven,Chartered ATTN:Julie Eddington and Catherine B.Rocklitz 470 U.S.Bank Plaza 200 South Sixth Street Minneapolis,MN 55402 15. Entire Agreement. This Purchase Agreement, Exhibits, and other amendments signed by the parties, shall constitute the entire Agreement between Seller and the BRA and supersedes any other written or oral agreements between the parties relating to the Property. This Purchase Agreement can be modified only in a writing properly signed on behalf of Seller and the HRA. 7 4115G1 vI GIIR RCI25-65 16. Survival. Notwithstanding any other provisions of law or court decision to the contrary, the provisions of this Purchase Agreement shall survive closing. • s 411561%1 CRR RC125-65 36,11 IN WETNESS WHEREOF,the undersigned have executed this Agreement on the date and year above. Buyer: Seller: Housing and Redevelopment Authority of the City of Richfield By: Its Chair __ And by: Its Executive Director 9 411561 vi CI3R RC125-65 0,I EXB1BIT A Legal.Description of Property Lots 11 and 12,Block 1, Scheubles First Addition Hennepin County,Minnesota. A-1 41156 1 v1 CSR RCI25.65 AGENDA ITEM# 4 REPORT# 4b MI Ail STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING OCTOBER 15, 2012 REPORT PREPARED BY: KATE AITCHISON/JULIE URBAN, HOUSING SPECIALIST NAME, TITLE REPORT PRESENTER: KAREN BARTON, ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: /I4 , / ITEM FOR HRA CONSIDERATION: Public hearing and consideration of a resolution authorizing the sale of 7544 2nd Avenue to Johnson-Reiland Builders & Remodelers, and consideration of a Contract for Private Development with Johnson-Reiland Builders & Remodelers 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 7544 2nd Avenue to Johnson-Reiland Builders & Remodelers; and 2. Authorize execution of a Contract for Private Development with Johnson-Reiland Builders & Remodelers for the development of a single family home under the Richfield Rediscovered Program. II. BACKGROUND The Housing and Redevelopment Authority (HRA) purchased 7544 2nd Avenue and demolished the house in 2011. Johnson-Reiland Builders & Remodelers (Builder) has submitted an application to purchase the lot and construct a new home under the Richfield Rediscovered Program. The Builder has a Purchase Agreement with a Buyer to purchase the home upon completion. 10152012 RR Contract 7544 2nd (Johnson-Reiland).doc The new one-and-a-half story home will have 1,769 finished square feet, three bedrooms, two baths and a detached, two-stall garage. The home will have an estimated end-value of$260,000. Construction is expected to begin in December and will be completed in the spring of 2013. 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 the Richfield Rediscovered Guidelines, if the HRA considers one and a half baths plus a roughed-in full bath to be sufficient to meet the criteria for "two baths." • The existing mature trees will be preserved. A tree protection plan will be required to protect the health of the trees during construction. • The program guidelines require that three bedrooms and two baths be provided in each Richfield Rediscovered house. The applicant is proposing to provide for one full bath, one half bath and the roughed- in plumbing for an additional full bath in the basement. B. CRITICAL TIMING ISSUES • Per the Contract for Private Development, the house construction must be completed by April 30, 2013. Closing on the lot will occur once a building permit is ready to be issued and is required to occur no later than December 15, 2012. C. FINANCIAL • The appraised value of the lot is $56,500. • The HRA acquired the fire-damaged property in 2011 for $57,000 and razed the existing house. • Under the terms of the Contract the purchase price of$56,500 will be due at closing. • Under the terms of the Contract the Builder will 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 October 4, 2012. Mailed notice was sent to adjacent neighbors, as a courtesy. IV. ALTERNATIVE RECOMMENDATION(S) • 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 • Contract for Private Development • Photo of 7544 2nd Avenue lot • Building Plans/Elevations VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Matthew Johnson, Johnson-Reiland Builders & Remodelers Li A HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 7544 2nd AVENUE TO JOHNSON-REILAND BUILDERS & REMODELERS, 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: 7544 2nd Avenue Legal: Lot 8, Block 7, Nicollet Garden Lots, according to the recorded plat thereof, and situate in Hennepin County, Minnesota WHEREAS, the HRA is authorized to sell real property within its area of operation after a public hearing; and WHEREAS, the purchasers of the described property have been identified as Johnson-Reiland Builders & Remodelers, and WHEREAS, a Contract for Private Development has been prepared, and the sale price of 7544 2nd 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 7544 2nd Avenue is authorized to be sold for $56,500.00 to Johnson-Reiland Builders & Remodelers; 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 15th day of October, 2012. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary CONTRACT FOR PRIVATE DEVELOPMENT Between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA and Johnson Reiland Builders & Remodelers,Inc for property located at 7544 2nd 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 It RC 25-65 CONTRACT FOR PRIVATE DEVELOPMENT TIIIS AGREEMENT, made and entered into as of this day of 20 11.,1 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 Johnson Reiland Builders & Remodelers, 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. 40I253v6 CBR RCI25-65 1 L`d4 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. $260,000, 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 8, Block 7,Nicollet Garden Lots, according to the recorded plat thereof,and situate in Hennepin County,Minnesota Located on land having a street address of: 7544 2nd 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 CBR RC125-65 2 • 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 11. 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 CBR RC125-6S 3 Section 2.2. By the URA. 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 III. 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 $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) I-IRA 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 RC125-65 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 IIRA. 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 December 15, 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 for the escrow account established 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 CBR 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 I-IRA 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 April 30, 2013. 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 construction 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 I-IRA 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 '101253v6 CBR RC 125-65 6 secured by the escrow account established under Section 5.1, and the Letter of Credit will be released [or 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 or Minnesota Green Path. If the HRA shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the LIRA 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 IIRA 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 Li AP 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. In 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 BRA 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 BRA. 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 401253v&CBR RC125-65 8 Development under this Agreement, and any other purpose authorized by this Agreement. Any Mortgage obtained by the Builder must be disclosed to the I-IRA, 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 LIRA, that the Builder will cure its default and continue its performance under this Agreement; (b) Cancel or rescind this Agreement; 401253v6 CBR RC125-65 9 ti /0' (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 RC125-65 10 VI) - 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 under 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: 4012531,6 CDR RC125-6S 11 ti (a) As to the HRA: • Richfield HRA Executive Director 6700 Portland Avenue South Richfield, MN 55423 (b) As to the Builder: Matthew Reiland Johnson Reiland Builders&Remodelers,Inc 11300 Canby Avenue Faribault,MN 55021 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 /V 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 RC125-65 13 LI)1/2 Signature Page for Builder Builder ,,e,„, By f\-' /V.,;(tAlt ,-,,,i i , Its ri-r,--C(k r 0,:i---. STATE OF MINNESOTA ) ) SS COUNTY OF A-C C ) The foregoing instrument was acknowledged before me this {-.7'r- day of 20 1 2- . by I-IA: T ,;< ,::, -3 Q, , i ci , d -i It. ,,-- ,k,,- ■,r c ,i -c the of 'Z's,1 i>1.,,• 3 : 1 ' c ,. ' . , . -t , • a under the laws of ,fil,•n r ; i-.. . on behalf of the ) MARJORIE K HANSON Notary Public NOTARY PUBLIC-MINNESOTA My Commission Expires Jan.31,2015 4o12530 CUR RC I 25-65 14 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 401253w6 CBR RC125-65 EXHIBIT B PROGRAM GUIDELINES-LOT SALE PROGRAM RICHFIELD REDISCOVERED PROGRAM GUIDELINES LOT SALE PROGRAM REVISED: NOVEMBER 15,2010 401253v6 CUR RC 125-65 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 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. IL 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. 13-3 401253v6 CBR RC125-65 Arj)\ III. 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 4012S3v6 CBR RCI25-65 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_citvofrichtieid�org) 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 CUR 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.nchfield;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 RC 125-65 /)9 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 tine 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 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 or Minnesota Green Communities, 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 RCI2S•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 4012531 6 CDR RC 125-65 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 C13R RC125-65 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 "Contract"), recorded , 20, in the office of the I-lennepin 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. ❑The Seller certifies that the seller does not know of any wells on the described real property. DA well disclosure certificate accompanies this document. ❑I 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 CUR RC 125-65 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 RAE) 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 RAE) Check here if part or all of the land is Registered(Torrens)0 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 40125306 CBR RCI25-65 i-vp EXHIBIT D WELL DISCLOSURE O The Seller certifies that the seller does not know of any wells on the described real property. 0 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 7544 2nd Avenue — Lot and adjacent properties } y � :::_, Kt �r - t. + - e of aK 4 - .,% -� ,_ 71 , ] i1 r• MC 10.........- -- FOI."1 IF77,-41)5:1"5•17773'r.r4 FX(651)894-0016 ---- '--..- WWW.F0X4.COM F - : ..ir._-- E.:-:_ 2 —__-__._.......... IR112„11='M\11'4.1.10"1 .1\FI.{1?.5 .4"7::-.;;i:•_:"-.'i,..... .';'=.=,::::=:=7_- 7-E". ..:•-:6Z---..—.7, ---777]:[-7-7-47-.E.. rIA1300RIBCAA.m.NBYT,14NAVES5.51.2.^E, .,=.-.. --... -.:. ,.. ri .2,2 4.5,2 ----- P54(507)306-1280 —77 FX(507)3664287 ---:: ---------- ,1/4 1RBANDR.COM ...„_..._ .,:...=....,-,.-..-..-... .„.--:-..--_-=•.:_r_-,-_—....-:.-.:::::: ,,,,,,,,,,T.,.,,,-r,- , , =4.- .... • . ,, • :-. •.A,C,A, ALUMINUM 50HP -------- I NO.$OW. 4 COPNeP..5 rm. SOK FAIMA', 3 L REAR ELEVATION _.1 .co,re4r.li _ 1 1/8"- 1'-0" Fi-.1--:....-'_-7..E.-:_7...__.:.7-7_'.:1=7....1......7.;-.....-2:-:'..-7-''--=---':-....=•=....i.7.7.=_-_:: U 1."'-',..7".%-......-',....,. uTu ,.-.•I "----_,-7:_-.:..7.7-_-7=7::7----..7:7----_"....==.:._-- -.-.'7_-1--=.=.=7=2..=----.—_-_,L.----=-. ..--.7:=L----'-^7-- rATA1 ',". '47_,==.=-7.:-.,====.,===__.......= Z CI . . . . . .._ ... . . 2 LEFT ELEVATION 4 RIGI1T ELEVATION 1=••••1 p/.1 ,_, _ I I/8"= i.0" I I/8"= I'-0" 44 Z ) I n to "r:Pr,DIA<4.,"VF,,41.:',,4,1".■ C.1.4 '— '.,'",--::.,.(.4.",:r.,IR:-■^^4.-,3..t'a til vt,V. ,, ,4". ,,, ",,V,- z U")W > ,..-• 1,,:o.";4 Ch...., ,,.^.^•ItAt.4 t■ V C.;;AntC7.0.4 Al,4,0 NOW..., 24,,,,:i,.','"AT;Vi V;II vv:.(".1.^,-, " ,' • U 1 V-:1;4;0 IC A W-4 ...,C,,(7.,OR,,V.,-1-1,r•Avt E,Ef, ,..,.. 2 Z _...,,,, ,t,,- ....,..'WI:-"I.A,1".-:V^7,V:4.:1,1,1'41 VIN■L 5 VAX, :u.,,,,47,74' ,,.. ,,,,,t,,,,":.:Tr:,■r.,, 1,P44-.^,4t^^',0:1,...TV)4.4:I....V • ',WAVA, •OX•.1,,,,,'Pk;4 Ott"CN 4,!..A.VeS 1.:' 41#DRAWING DATE 1 • '-77-7Pgr-41Ir 8.16.12 VL ,I i 0147-4,CTOKAALAOF.0,..1f.k V r., i 1 ,,tg•••r avEl C,^0.V_V..All liC•ti^it-41...-4. ----J-.- ----- 1 L. , - -16N.----__-,--2-.,,,„.A.v,,,G tvgr...A..,_ ,•-8 3113. 1 REVISION RECORD . . P.,,,,,,,>W.:,C,,,I::,...Z.,K.4;or:,■ 51,1ARMLT - ' — '0F,'' - =11 2 8.23.12 VL rkr,To-,•-...,-(V('■nt''';Jc';it Vi '.. t t ----hrillg-a.r.- - L., 3 8.29.12 VL W.;AAA'^'Ar,T,F.,5 Mt tArRt.5^.4.D:., , § .- ^,"Mr'.f:'VC1.■,..,.7.C...,..,,,,A.;of 4 f-K,A^V.SItAz V _ 4 9.13.12 VL IP 1,',.I..:014.1,:F."rr 7 '4.'.,0.WPFil•St ---'- —S q 7 ,'A'N:is 0:,1,..:.!f,L'•"A Uo H Ar,.,!, Al .6sese.. sclaIG 44 8 FINISHED SO FT - ' rt.!L AN,,i.e.::■^' UPPER: 459 MAIN: 971 _,_____ LOWER: 339 BONUS: II II TOTAL: 1769 SiZSIGII:Elli I A^At 4••,,V.4,l'i,t "41.!A ON At,...•..t1'. s% .. 3 ,-,.Nv,a 4.,:,■,.,,1,.-I,L A•kMo,t r c _ ••• PROJECNUMBER <g JRB058 % SHEET E 1 OF 5 ...1 ■. i z, 0' \ F04..1 4155 OLD MIER MOM,SOW'). EAGAN,MN 50122 PH(651)8645960 16R16/(IN";(0Z14CTM ( 0, , 6 . , . ,r - icti., Ri_.(.1-,,; ,,,,:irg,\;4 K • CONC61).Ttz rot.t..:w, cni / STORAGE ...""..- I i ,G A er CIMICYCI.:`,Gi .e!.N.,..Ft.COM ■'' 11300 CANS')AVENUE I ',61 1, o _ • F.41215A1217,MN 55021 1 9 6. Pll(5(77)366-128a EX(507)366-0257 FAMILY ROOM =',. 2/5....V8 NPNACC , IREANDR COM TN-,Js( S? I 111(11MMINEigillEg' 2x)..--10504 IC 0 C 71 W 6, P-1)lin3'..tf:ON .,G t,04 3/0.3')..'NS ''' UN.L5AK PI,CCM' Z H .6 2' 7 3;.., / G 0 A' 1 .4. C. / -•"';-5 ‘‘ <M '3i I .... --4 srirm,_ . .,.. ... . .__,,,,. 0(261)A MAI 601.(020 6( CONCNC7..0.310 V.,-0, Ii 4 OATH ,,., ,,,,,,,, , ru`UKt 2/5 r CRS 33 ' •••—• 27■B.CONC.Vt'-'05 W 'g 1 . II 3111111111111111.11101 __. _, _ , I PC1 r--, cv ,•••-• -2P1 P - — CLOSET :4,2,•.2' pe(r) LO Co c roD coo Z Ir) C.74 .-NPIINF02:73.9 0 W Z C) Z 41 ,, V .;,...■,<i9 • "214•i'48 1 s,„•-C,6 N---- C-'22-ROP-M-1-31 \,.,.. 4. 177; Z 12C.1 < :7:1 • Icc) c■1 ,..r.HT"' 1-(-1 ,,,,.. ,. 2 0 r•z1 4 u PEPRQOM ie 3- 1 . #2. -r 0 2 A L.'(('II'UR..7.70"Of, 1 "1 rse. -1. 00' 0 1.05(11211(75). i .P Fctvw^t.F.C...M. , a ■4. D DRAWING DATE / .1, / ./ our..,..4 00 1 P"..,..3TUD5 t3'..g 0 C ON 8.16.12 VL :-.1,,ci 2 N.O 3'G.(01.C.161 POuPtD \ s. 1._____,, asim■ k.. wal...DN REVISION RECORD 7(6.‘Ag nv,c...).?r 1 8.16.12 VL 5./C.■3/6 Ai. /:',..2..G.C,•:., I 2 8.23.12 VL ; ...• , 0 no 12 150)5 011 3 N W.' 3 8.29.12 VL 4 9.13.12 VL N. N. • . 5 6 ' 40115. s i c 242/ / 7 ...oo,or.1.•.1.;,.4. 2.0 0 / 8 FINISHED SO FT UPPER: 459 MAIN: 971 LOWER: 339 BONUS: I LOWER FLOOR.PLAN TOTAL: 1769 2 I/4"= I'.-0" ....i(--..\ .3 :01.12 1,,,-,-oN.,1 PROJECT NUMBER ,z1 ,r,„„7.•,:",.■-,,,,\L.Arv.,:i JRB058 SHEET E 2 OF 5 .,-,-, / 1 Fe)L-1 4155 OLD SIBLEY ME.M.HWY. EAGAN,MN 55122 24'.:r PH(631)894-3960 FL(951)0941816 W W W.Fb8.1.COM 0.21/2' T-5�l2• }1' T•0' JI' 4'-s• _ C.-2648 I 1 c1-2840 1 C'-2040 ii�� 7,,-,60\,.i , ,. R.o.z-ana'a R.o.2-471•. R,nz•.4na'a Ll <-011- - I' 4'-01/2' i 4'-012' BUI(DFS.y REMCOF.IERS \ \- CL05ET TOVVra.FI r 4 . 5'NCn 11.T00 CA\'BY A\'Ef�l,•E b y } c5 m J LAUNDRY b I I - N v�'.tt _ MP. Il.?r FARIBAULT,MN 55021 �l auv/ u� PH(507)3561207 .0 ' S'-I' S'-5'„ ') 2.6 'T-IC EX 007)366-12S7 � r�� 2H a 966 2N.b6 ro.'SlNxc) V I ` IRBAn'DR.CoM I 11 O it I W0.M1ER1' MUD ROOM I w l'- _ V'ws 2/0 a 6.8 1 S P.,310 x GIB v 'ROOV•IN-04 C DRYER. 'a FS] ' tai. --TRU55e5 20 04.OZ. V 1 ■ 0 1 n -.-A` . RECESS _ 30'01 '•'UP 166 II 1 _ _J �'" �4000.4ON 06.60 I 1� 3C PAIGE 18'6096.JOIST9 I W CO.11N11:O':1950. �. POT PURR I 1 I C2.4840 O ..�.... Ain-7224 FIXED CUVURED 970.6E Bsf C•6' °OUGM-iN II R.O.4'-4 12'x Y K.O.6'.I /e•. W 13'-55/16' 11 !� - 7.05/8' M�•4 j i. sit !PER NVG SPACING I PANTR • b CA 3a 9u \ IJ 'I it KITCHEN 2H n wa Sr.Ew S -} -N f�W t"I- J N `N SINK V1M1 . ._.i ^.' P°1 b i f-) ■I 10-O' • M _ x 1 I" 1 5 i p ° PORCH " ow : DN 155) ( e� CO 1�f) CONCRETE I 13'•4', I.'4 4 b' . / Z 16.0009 II.- • rza ENTRY 2 Z Q ,a }- a 0a V1FfT x Q 3'0 I 36'GA:F.P.!1 a (7 ®� N ili C2.5059 1' !I III a, 7 F�1 -o3'B' LIVING CARRO 'T.-- 9'-1 PPC:95T DINING AREA DRAWING DATE • b. VrvK 8.16.12 VL O 9'.1 us.MT 761 I'•O' • 'n REVISION RECORD ° to 1 8.16.12 VL Th::N•ALL-VEPJP' 2 8.23.12 VL 'PAM::9ETNE5 W/SUPPLIER 3 8.29.12 VL A. \ \ ■ it 9 1 2 a 11 4. 3 i AA.- 8 4 \ •\ 4 9.13.12 VL ( C1.2659 CI-2059 CP.5959 CP.5949 0'-2859 C1.2859 CO.2'.47/92••47/8'a LO.5'-033.a 6.0.9-021•.60.2'-416.0.2'.47/0'• 6 5••0314 5'-83/0' 5'-03/0' 6'-/1319 4.03/8• 6.03/0• 6 NOTEB: ' ..A...WER'05a EYERJ0R 9482103.055 TIAN 6.O TO G 4 24'-0' 8 502.2..0;.VO. 30'.0• FINISHED SO FT 2 STAIR-MAO 5:21 TO BE 10 / / UPPER: 459 2 A..655/ ARE 45 2506!15 MAIN: 971 1,0.055 NO-ED OT+.'PY'5E LOWER: 339 4 VAIN ROORTO sC O-.v6'PLATE 40160-n.LE55 I I MAIN FLOOR PLAN BONUS: 50:00 OT1FR/V51. TOTAL: 1769 3 ' I/4"= I'-O" 5. .016'X256 0.0.0c6ITY-0 et C 0'U.N.D. I1. 6.A:-EX'EAOR DIMEV.F.I0,3 ARE o "0 0.,T6DE OF P PAMN6 PROJECT NUMBER UL"5c NO'ED 0T9EP0/I5C. JRB058 $ a 7.6A'.DOW5 TO x 400105[0 9..VEItINC. SHEET g 3 OF 5 la F w: -1 • 4155 OLD 51110Y MEM,HWY. EACAN.MN 50122 24•0' III(651)8943990 / / _--LC P3351)094.0016 / 5••0' / I4 O' / 3 CY I m b WWW.FOX.1.COM / . � / .p / r c / �_ II TTT BDTK� �l`hk�\0:1::'1.1 '7 C2.4.3' �t_ -'- �BL'IIDFR�R R�MCAiliRS R.O.<. 9.s 0 ?' z u I.5 _ r,,-,----, 1 \ \ �x u I 113011 CA\BY AVENUE I b b, FARIBACLT,MN 50021 q a - PH(5R7)366-1725 s ' P,OJ.Y•'N-PiC i;{S Fl(1507)3641767 7--....5.24' %,,, IiiBAf9DRCOM 1 r . OWNERS SUITE ' R CAePET L 2 m 5 QU N 24'OVERPANG5 4 I8 PA623 52X61 rW' __-.O-U --- U SLOPt STNNDARD CNCR!"Y MEftS 4 9:12 20 //�` j PLWR RF.5ED MEET tPj I p::2 TO MATCH `. J 7 0 0• Z al v' 2/4.4/9 POT 2/4,4B NI :,I1,/ _ '.. CLOSE-ill eu /H� �q': .Y CaePET i yll - ---- W/ "P L°A!"STANOVG TUB :,'i' �\ M al ' I ►:y -7105.ROO,TRJ55E5_ A31,7224 BRED C2.5448 7Me ' `I '�24'O.C. :` R.O.G.•I I/4'a P,4'.01/2' II AMC ' i' 2'•CSlB/ • W q'.0 I/2' r �8'-T• � -4'.0' 'I ACCESS; '.' ----,-,- -�-—-�Y Fr`°JL/°]g1� ( S.VANIT \ 1 i - - i I . _i 9 - 2 'ROOF PLAN BATH •ae I Ran. - N , `°m9 r• .' GO'Y.O.SMNR •• , I i b Ln 1' iI J i OVERLOOK ON IGR . ' I N to Z. i,y 1' '.;i .-. - 2.4 CARPET 2 4�' _.!, ®(WPB L. - • F W A e6UVG f 't7 W W x rte" OPEN TO mow -TWICAL 2.6 LL rT' rT CRTCR/OO WALL 2 F"1 �l ►Uy _ 'IMMA S;VA4ANT+0 -242500300 d{ BE CONT.0026 WALL- _ PER CODE D ®1.... ..)e.4 '�`q ~�.,// _ __+RTO 2x40/1 PLATE 11 1�1 36 '.55''MERMAN 9i1JLATION(RA O) '- 'M ROLL 5111 SEALER W!ACOU50CAL 5EALANT 66 TOF 1—ho •30110M 10523.DCIWECN!NSUL. ' 5 F. .5163.AT ALL VERTICAL EDGES \� GRADE P DRAWING DATE II 1- 4 • POLYURETMAVE CAULK 2 OR C.ASTOV,PJC 4, {rr-r'1- O- WATERPROOF COATING 8.16.12 VL 326/4624 ALL JOIN'S-• ,II:,-"'.' PROM GRAM TO TOP REVISION RECORD ,I I 00.00253 1 8.16.12 VL 3'l.CONCRETE 51A5- W' ,rl l I'L� ::OOXOUT WALL: 3w RNN.0~Lh- n . 2A4 STUDS®'G'00.av 2 8.23,12 VL ti � CasRETE P0UN0.W6u oN 4 8,29.12 VL \ i' •• 20'.B-ERCODTCrTG. • a 9.13.12VL 1 I MBAR PER CODE • 5 \ \ G Mll POLY V.B.,OVERLAP -GRANULAR FILL 6 105)5 ION.'2'4 TAPE. -q•DRAIN^LE NOTES: SEAL ALL OPENIMGS-' yy 5C`02', 7 .ALL:N:kNJR i EX'EPJOR SEADEP51E55,MAN G C.+0 .' 5C?-' O J.N.O. 8 FINISHED SO FT 2.5T61R 7RCAD 217C+O 52.0' 3.611 AVGL23 ARE 45 DE.Rees 3 .TYP.LOOKOUT SECTION UPPER:• 459 MAIN: 971 J61232 50220 OT.S9/35Y. ' 4 ' 1/2"= I'-0° LOWER: 339 4.UPPER%OOP.P .100,T5 T5 _ row 9-�oe'JN_E55 . I UPPER FLOOR PLAN BONUS: V.^. NOTED 0�:eR.rse. ' 4 ' 1/4"= 1'-O" 1769 TOTAL: 5.AE 09N202/P.D.rt/G7T5 70 - _. OP G'.2'1,6,151 NO'72 03110/952. G.A-L 20226OP,O/AIEN510NB ARE j\ E 'J 0.(1501 Of PPA\•I/:S ( PROJECT NUMBER _ .16/255 VOTED 0l:69.tv152. \.)J n 7,<,''1,:w259052 ,� JRB058 a ANDE',SEN 51LVERUI•E. SHEET R _,,,„„_,__,__.____..,__,.....,__,___) � 4 °F 51 - /2'053 ROC.SMATMIS// / UPC.ROOF -(54YALT rELT LN 08 F®X._JL TRUSSES;q 24'U.L.- 131 ROLL UNOCR ATTIC VGNTIN5 -VeT CPLRES 4 1017 WASH AS PER CODE- t9 EACP TRU55=PACE -.04 WATER&JAM T:C'I:_YT!'i: Kr.tr A3 FROM FAVE70 2'-P 4155 OLD SIBLEY MEN,HWY. R-4.MIN.BLOWN MM.Oyer.STRUCTJRE \ ATTIC INSULATION ■_ ALu EDGE GAN, -35990 4.a -'I FX(651)894-0016 W W Wmx-vCOOM {. C MIL.V.B.J '-ALUMINUM FASCIA 44 �T� -11-1W:414..-9 _-_ ._ .-_-. - — - - - - Se'GYP.es. -YCNRDAWMINUM~A TKI<� SC�\ti�.i�A�'1 I5 SOFFIT PANF15 J 1V2 1!1FRi 5 RSMODELER' 2 nIII a / !2r- -.1.-y-73-,,,,,r, ID fill I a Q C W/R�19F.G.NINSULATIOM ✓ WNER'S SUITE - L III T I{ } i1 -25/32'DT.O JTE ]]300 CA\BY AVENUE d$ v,-P.Y., FARIBALI7,MN SSP27 q a G MIL 0/.6.-" PH(5125 366-1287 _ dAB91VC RADON 5Y5TCM: ,e -TYEK(OR EOUN.1 FX(5117)366.1277 T SPRF FOAM ROLL n0U5C WRAP ` IRBAfNDRCOM 3'MIN.ABS OR PVC GASTIGPT INSULATION D W PIPE PROM SuBSLAB TO -\ -RIM JO'ST __. - ' m — MIN..2.!CONMN O CO S A 535/1000�. 10 SO^W. O'OPA DC RUN TPRU CONDIT!ONCD SPACE. �,MAIN rLArz , 0 \ NT CAN BE CONNECTED TO \ 9-e 970' MTV. •.LP I4'-U 5'-U VERIFY rLOOR SYSTEM - / 1 SUMPS o .0.-IR PAVE N. WITP FLOOR PLANS- - /� U ^FIrING R41N 10-0'EA.WAY) FL J` IN GRAM UND88 SUB. �j b z END OF PIPE MUST 0 41'T.'0-0' /�~ AWaT FROM ANY VO OW OR MUD ROOM LAUNDRY "'L •a CRIER,OPENING TAT 15 LL-5S Z C41 — C 1 TNAN Of BELOW END or PIPE. END OF POE MUST ALSO BE V. V J OM MN.IO'-0•AWAY FROM ANY 3 -2.6 SP.JDS P9'6'O.C. W I WINDOW OR O'PER OPENING IN `L WI R•19 F.G.INSULATION FY/ ADJO'PI'NG ORADJACENT M•%4 MAIN FLOOR., - - * 82/10IJGS. 9 In'GIP.BD.- -25/32'DIL7RRE FA/ I'.7 IH' 14'1,050 3nFA'.M'NG L�W■ .�T.O.FOUNDATION—_ SUFFICIENT SPACE Mu5'9E - -'OVER IOR EDUAU r�""1(W() _.. _ _---._ -- - --- _ - ®— LEFT AROUND PIPE!N ATTIC SPA. - ROLL POU5E WRAP :SC O P _- --..� - =7=7!. TL ADD FAN.SPACE MUST BE w MIL.V.D.-' V J —I, MIN.024'CENTERED O MS O° 5 -SONG.VERIFY [7�W Id PIPE W/MIN.°-0•VERTICAL SPACE. �1 _ _j . v ELEVATIONS P9 ® N• 2'SPRAY FOAM A SINGLE PP.CAN Bt ORD IP ALL 1I ItL5UUTI0Y�. LP) SOIL GASES IN DY2WNG CAN -RIM JO15i 2 ,OWNER'S SUITE SECTION PLOW FREELY SEMEEN All LEVELS or000 W L1') OF FOUNDATION.TtL INCLUDES SUBFLOOR -ANCPOR SDLT ^ F"-V 5'' 1/4"= I'-0" /020OR FOOTINGS 4 OTNER \ - ICE ODE E51 V -- BARRIERS IP AIRFLOW PAS VERIFY FLOORSYSTIM I -3-246110151U.PLATE DEN=MOW tO \ WTI P1000 PLAN5- ?, M7 ROLL SILL 5EALER P�/ Prl LASEL 71-LE VENT opt AT LEAST -I—.4 I'4rT,°I 1+�4 ONCcPER FLOOR AND IN nf�` GCE Lr�/F+-I rF^^' ACCC_51BLt ATTICS WTP 'FORMA%45`.ALANT TO !'_. 0 / . 11-4 'PADDY REDUCTION SYSTEM'. BE ONE.OVGRWALL- 4 H - •ONE ELECTOCAL RECEPTACLE L9 •-I ¢ �w0/ F•'! APP~TT��'' REQUIRED IN THE ATTIC NEAR 1.55'TP0RMAX INSULATION(4.10/ 1 I—(I..-WATER PRWF COATING LL ^ C^VS TPt VENT PIPC FOR OPT.PAN. WI ACOU511CAL SEALANT B TOP • -;I FROM GRADE TO TOP = W di •DOTT0M EDGES.BETWEEN!NSUL. IJ OP FOOTING - FF�T41 d{ •SLAB 4 AT ALL VERTICAL EDGES- I —1 1.L4 LC) 171 r. iI j:� a-ovn7.Br,�FD P=o 9, x • \ L-{ CONCRETE F'J.ND.WALL O! 12 II RE5AR ICE OD'.. fTG9. POLYUitGTPANE CAW. 12 OR 4 A3'O06175 DRAWING DATE SEALANT ALL JOINTS- O Ill CO1G3TC SIRS- -GRAMMAR•ILL 8.16.12 VL 4-V15 UTEP. - ' I ti� S J b\ ' .` 3M•RNGP.ROCK ..I REVISION RECORD I v A,•-' ,j 1 8.16.12 VL•iN N dfA � ® 2 8.23.12VL 6 MIL POLY C . OVE.RAPII a 8.29,12 VL tDGE9 MIN.'2'4 TAPE. �' -4•DRAIN TILE DINING 4 UV1,NG Mrz �• _ I■ j !, *_ o SEAL ALL OPENINGS—` 4 9.13.12 VL 5 '�la-Bnro• ° 16 ,TYP.WALL SECTION s ....0 . N., ' 5 ' 3/8'= 1'-0" 2"6 STUDS®16'O.L.ON 7 �T3 G.4 TRIO LUMBER ON 8 LAVING ROOM DINING AREA = 6.e CE CONCRETE COD EFTGE. b • < ANCPOR BOLT MAR PER COOP' FINISHED SO FT I ICARPIT 0/18011 p 1 ° UPPER: 479 1/e-p'T L--.. ;A PtR.ADE- 4� D _!n'ONCRtiC:.AB- -TRTD S!LLrUTE MAIN: 971 910/5.54411 LOWER: 339• 314.857 ROCK- 1 BONUS: _R '/T 8/16500 _ - \ \ \ — 1 _ - 14I-JOISS WIt1=11.111111 TOTAL: 1769 -- - - - --' - --- - - — - . — CA U. 6 MIL PO LY V.B..OVCRUP , OPR CLAS TOMERC _ �eI I S�I it'=ii: =11 . MN. TAPE. 5 SEAL ALL O*IIIK•S- . SEALANT ALL JOINTS SLtEVL EVERY '� PROJECT NUMBER < 'C'-0'MIN. ION JRB058 I :LIVING ROOM WINDOWS . 4 ,BEARING WALL SECTION SHEET 5 ' 1/4"= I 1-011 ' 5 , 1/2"= I'-0" 5 OF 5 ,„P t r — -- £ZV99 NW'Q73IdHDI2P e-il '€p / 02 iii g HIf1OSafINaAVPuZ YSG a, 1 5 5 g 6. , Lo -' ® ' y iig ,1,14 �JN�4ISS2I?Iris 18 2i�0?I�gH�2I NHL �� M ri6 t.,, N .- ,Yyia l''' o0 0o ao m vi, A IL r� II a QNv1I IThNOSNHOI ` d , NOILYMRIOl19Of .-NOV'OOhW t2 H PI a $g a ju, 1}g a'-D ,, Pik k i s m J xNY hqi �' a�'P3 III: �'-°"'a -9:1;, iff---------- ----lizi 1"41;. 114913H 3Ld1d.0/1 1-43 A M. o w § b U 7-t e r 0,4L '1' .O-.OL .O-* / 1 OIXL-L Q aN K . k �° 4 4 O g = n 1 O X , \ 4 n 2 o-.4L 4 2 I 11111111 1Ili1 1 I I I I I riii tir PH 11 In 3 nl I— g. 1 II I n— '' 1 1 ,,,), ,, 1 II ii ini IIIi- o 4s I nn in I I I I I I I I I I I I I I I I I I I I ADDRESS:7544 2ND AVENUE S CERTIFICATE OF SURVEY FOR JOHNSON REILAND BUILDERS & REMODELERS, INC. NOTE:ALL BUILDING DIMENSIONS ARE NOTE:MAXLMUM IMPERVIOUS SURFACE=45% SHOWN TO OUTSIDE OF FOUNDATION SETBACK INFORMATION: HOUSE FRONT=30' �r 843.4 SIDE YARD=5' n 'x -� j =x15+rvG . SIDE YARD(CORNER)-I.. I ll r•� x39.7 x843.5 / GAWC.0 %r,43i ✓r3.f1 511NG xtivrwnr REAR=25' �,' - U '� GAPAG_ �' /x43.5 8435 x437 / A4=°` GARAGE / x433 2.'F' �; FRONT=30' sr BACK nr+ 890°00'00"W 13423 x43.8 38 �,x REAR=3' .• �,�_ x.87 72lCe us y�� 553' 1 `'6,7,&-.. S0 SIDE=5' ,..0, /' ° .1_ ti o.. '' _4, =91L`iL B9G-x1Y' -:_....8438E_.-- SIDE YARD(CORNER)=12' POIP 1v�44.1 30 du'/ // i to-oo uu6.xl:f+ 11439 v ' 20'1527.8 Nt73-43.871 ;,;. I �°=2��• zoo 0 i. 1 844.DW Z4r� . W7.7 %843.i 0l F 844e_..I_ ....\''.% $� _ W .� t°G xR47.b ,-I-i► i, '-� I ,1_. XM43.'/ y W 0 '� �O 438 y ® i ®1843 ?4...Icee x83,6% ':-9 D , 0 DENOTES IRON PIPE MONUMENT SET 0 0'. ,C P 0 '� 8332 f n/ /i i iin i i.7iiiii/iii/?4.0�^ Oc G 40 0 "�� ' ' 0 DENOTES FOUND IRON PIPE MONUMENT fV +' .g. x/43.6 x844.2 ,•� g Cr)'O r x843.6 %R439 j x42.9 5 vI tK DENOTES PROPOSED DRAINAGE DIRECTION H/T » ,zoo ,,, aav LOT 8 PROPOSED ? r. 3o.s $ W .:u.. ,,, x43. 842..8 xu,93.4, N HOUSE N x441. I• 5� 4 DENOTES SERVICE LOCATION i/G//"/ 7rt ® FB/FL.AT x S m a 5' 8433 BLOCK 7 /r/.ir7vDMMi� r rir/iiiiiii !/E I x x439 W .6 : Z 0 DENOTES WOOD HUB v ' 3.2°.e X 843.8 %3 1%3 O a.. 4y 1M / 6442 p% � 000.0 DENOTES EXISTING ELEVATION PXI,'•,'kG { Et_ GAW1Ge.Y1'f9Af.K NW - %// ( a 0 a W Ir FEt x44_'r x $44 ' r �7 DENOTES PROPOSED ELEVATION N : iy' Gn1nGF ,: 844 n S /x47.9 81 844.40 26.0 g 1 s c� o 01 s'o 1 DENOTES DECIDUOUS TREE LL �1 /////a Q I.X1,/f3 %x442 '1i 1 /) s. 844. 5 x643.9 rrz+ .:x i 5510-144r4+T' \ 'r"I''''''''"- 0 DENOTES EVERGREEN TREE 0 5 [�,-yid y 84..9 Z s E') XR44.5 �'9 ?e-3ACA Ne.. O ` L ^OWev, .x44.9 844.9 x44.7 /x44, .... � ,\ %4414:3�' ' 13J... ;� _ N 70,e- ��.o XAJ31.x1M44 xR44.' 0 : - aH x x 4 3'• ND IP 0 1 48' Nee 8447 30 S OF 702 - - 9 - • - , x x43"(-�. N 845.50 PROPERTY DESCRIPTION 344_ 8442 8444 x yib 8Sh3 &K.° `.,._„ x43 a, w0si,,. LOT S.BLOCK 7,NICOLLET GARDEN LOTS, _890.00'00 E 1134.23 NNMINOUB Par $4'.7 CITY OF RICHFIELD.HENNEPIN COUNTY. 8437 844.4 844.3 8442 i 843.3 I MINNESOTA. CONCRETE 0 ..7 APRON 833.3 48, I HEREBY CERTIFY THAT THIS SURVEY WAS PREPARED BY ME OR coNcLwre RGTC CURB*GUTfLR M 76TH STREET 0 APRON UNDER MY DIRECT SUPERVISION AND THAT I AM A DULY LICENSED LAND SURVEYOR UNDER THE LAWS OF THE STATE OF MINNESOTA. c=21#8 - - _ _ - _ - - - DATE: 10-02-2012 Thortae 1 Mecum, THOMAS J.O'MEARA.LAND SURVEYOR MINNESOTA LICENSE NO.46167 LOT AREA=9.665 SQ.FT. NOTE:VERTICAL DIFFERENCE BETWEEN PROPOSED PROPOSED GARAGE FLOOR ELEV.=846.0 Bohlen HOUSE AREA=967 SQ.FT. GARAGE FLOOR&PROPOSED TOP OF CURB AT GARAGE AREA=480 SQ.FT. CENTER OF DRIVEWAY=1.5 PROPOSED TOP OF BLOCK ELEV.=846.5 Surveying &Associates PROPOSED BASEMENT FLOOR ELEV.=838.8 31432 Foliage Avenue 1584 Cliff Road E. Northfield,MN 55857 Burnsville,MN 55337 Phone:(507)645.7768 D A Phone:(952)895.9212 En448 in(ocbohlensurveying.cam Fax:(952)895.9259 S:\Company Shared\Projects\RICHFIELD)2nd-Ave-S\dwg\LSB7-cercdwg / AGENDA ITEM# 5 REPORT# 47 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING OCTOBER 15, 2012 REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON,HOUSING SPECIALIST NAME,TITLE REPORT PRESENTER: KAREN BARTON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: 4/r ' SIGNAT:�T' REVIEWED BY EXECUTIVE DIRECTO" : 111 , ITEM FOR HRA CONSIDERATION: Consideration of a request for a subordination of a Housing and Redevelopment Authority Transformation Loan at 7033 Penn Avenue. I. RECOMMENDED ACTION: By Motion: Approve or deny the request for a subordination of a Housing and Redevelopment Authority Transformation Home Loan at 7033 Penn Avenue. II. BACKGROUND Michael Johnson and Heidi Niesen-Johnson (Homeowners) of 7033 Penn Avenue have requested a subordination of a $15,000 Transformation Home Loan they received from the Housing and Redevelopment Authority (HRA) on August 30, 2007. At 86 percent, the combined loan-to-value ratio exceeds the HRA Subordination and Satisfaction Policy limit of 80 percent and staff-level appeal limit of 85 percent. In addition, the debt superior to the HRA would increase by 63 percent, which exceeds the Policy limit of 50 percent. As a result, the request was denied by staff. The Homeowners are appealing the denial and have asked that their request be brought to the HRA for consideration. The Homeowners began their remodeling project in 2008 using a home equity line of credit (HELOC) and the Transformation Loan to finance the project. Costs 10152012 Niesen-Johnson (7033 Penn) subordination appeal.doc exceeded these resources, but the Homeowners were unable to obtain a construction loan to complete the project, so they used credit cards and a loan from their 401k to complete the $222,000 project. Now that the project is complete and the home's value has increased, the Homeowners are seeking to refinance their existing first mortgage, pay off the HELOC, the 401k loan, and credit card debt incurred to remodel the house. The Homeowners have receipts verifying the HELOC, 401k loan and credit card debt incurred were used to complete the remodeling project and have submitted these receipts to HRA staff. The HRA is currently in third position behind a primary mortgage (balance of $153,147) and a home equity line of credit ($32,600). Both superior mortgages will be paid off through the refinance, and the HRA's lien will be in second position behind the new, primary mortgage. The HRA lien will no longer be behind a HELOC. Additionally, by refinancing their mortgages and paying off the additional debt, the Homeowners will see a savings of$2,000 per month. III. BASIS OF RECOMMENDATION A. POLICY According to the HRA Subordination and Satisfaction Policy, the HRA will subordinate its mortgage interest if the following conditions are met: • The total debt secured by the property, including the HRA lien and all superior mortgages, shall not exceed 80 percent of the documented market value of the property. A staff-authorized administrative appeal of the Policy can be granted if the loan-to-value ratio does not exceed 85 percent or if the amount of superior debt does not increase more than the value of existing superior debt plus closing costs. • The overall value of superior debt must not be increased by more than 50 percent. • Closing costs do not exceed three percent. • Payment terms are within the financial means of the borrower. • Equity being removed must be no more than $5,000 or must be for qualified home improvements. • Property taxes must be current. • No more than one subordination has been granted to the loan within the past five years. B. CRITICAL ISSUES • The combined loan-to-value ratio is 86 percent. • The proposed first mortgage of$303,011 will pay off the first and second mortgages, a 401k loan, and three credit card balances, and pay the FHA-required mortgage insurance premium. • The amount of debt in front of the HRA lien increases 63 percent from $185,747 to $303,011. • The home's value has also increased as a result of the remodeling project. The current appraised value is $368,000. Prior to beginning the remodeling project, the assessed value was $228,000. • The HRA is currently in third position behind a primary mortgage (balance of$153,147) and a home equity line of credit ($32,600). Both superior mortgages will be paid off through the refinance, and the HRA's lien will be in second position behind the new, primary mortgage. The HRA lien will no longer be behind a HELOC. • The refinance will pay off debt incurred to finance the remodeling project and will save the Homeowners $2,000 a month. The refinance will improve the homeowners' ability to continue to pay the mortgage payments. C. FINANCIAL • The application fee has been received for the appeal request. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S) • Approve the subordination request. • Deny the subordination request. V. ATTACHMENTS • Subordination & Satisfaction Policy • Appeal Letter VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Heidi Niesen-Johnson and Michael Johnson, homeowners RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY SUBORDINATION & SATISFACTION POLICY EFFECTIVE JULY 2012 Subordinations Richfield Housing and Redevelopment Authority(HRA) loan recipients requesting subordination of the interest of the HRA in real property must submit a Subordination Request Form, the required supporting documentation, and a processing fee. Forms are available on the City of Richfield website (http://www. cityofrichfield.org/) or by calling the Community Development Department at 612-861-9760. Requests will not be considered until all documents and the processing fee have been received. Required Documents The following information must be submitted with the Subordination Request Form: 1. A typed letter dated and signed by the mortgagor, stating the reason for the requested subordination and the use of any equity being removed as part of the loan transaction. 2. A copy of the current appraisal (dated within six months of application) or other evidence of market value of the property that is acceptable to the HRA. 3. A copy of current title work(must indicate all debt against the property). 4. Explanation of remaining debts or liens with supporting documentation (i.e. most recent mortgage bill). 5. Estimated closing costs/settlement statement, where applicable. 6. A copy of the mortgagor's loan application. 7. Additional documentation may be required. Evaluation Criteria The Richfield HRA will subordinate its mortgage interest if all of the following conditions are met, to the extent that they are applicable: 1. Closing costs are reasonable. Generally this shall mean that the sum of all discount points, origination fees, and lender ancillary fees generally shall not exceed 3% of the new first mortgage amount. 2. If the HRA believes that the payment terms of the refinance are within the financial means of the borrower. 3. The total debt secured by the property, including the HRA lien and all superior mortgages, does not exceed 80% of the documented market value of the property. 4. Any equity being removed beyond the cost of the loan transaction will be used to improve the property. A typed letter, dated and signed by the applicant, must be submitted stating the use of any equity being removed. 5. The overall value of superior debt must not be increased by more than 50%. Exceptions may be granted by the HRA in cases where superior debts are found to be unusually low with sufficient equity protection. 6. If no more than one subordination request has been approved by the HRA in the past five years. S-) 7. Property taxes, if not escrowed by the superior mortgage holder, must be current. The HRA will not subordinate to reverse mortgages. In most cases, interest-only loans or loans with interest- only options, revolving lines of credits or debt consolidation will not be allowed unless the HRA determines that an acceptable reason warrants this type of loan. The HRA may approve other subordination requests not meeting the conditions above on a case-by-case basis that are clearly in the best interests of the HRA, where the security of the HRA loan remains acceptable, and denial of the request will cause or contribute to a documented hardship on the part of the borrower. As a condition of approval, the HRA may require the Borrower to receive financial counseling. While many courses are available at no charge, the Borrower is responsible for any costs associated with the counseling. The course must be approved by the HRA. Fees The fee for a subordination request is established by the HRA. If the subordination request is denied, the fee will be returned with a letter explaining the reason(s) for denial. An additional fee is required for an appeal to the HRA and is non-refundable. Processing Subordination requests will be processed by HRA staff, who will submit the request with a recommendation for action, to the Executive Director. The Executive Director may request review and final decision by the HRA. Requests for subordination should be submitted 30 days prior to the date the agreement to subordinate is needed. Exceptions may be made on a case-by-case basis. Appeal Process In cases where a subordination request does not meet the Policy, the Executive Director may grant an administrative appeal under the following circumstances: • Loan-to-value (LTV) ratio is greater than 80%, but no greater than 85%; or • Equity being removed for anything other than property improvements does not exceed $5000; or • The amount of financing superior to the HRA lien does not increase more than the cost of settlement charges related to the refinancing. If an application is denied, the applicant may request an appeal in writing. Appeals will be submitted by staff to the HRA at the next regularly scheduled meeting, provided the request is made at least 10 days prior to that meeting. The HRA meets on the third Monday of each month. Satisfactions When a loan made by the HRA is paid in full, a document satisfying the lien will be prepared by the HRA and delivered to the borrower for recording. The borrower is responsible for the cost of recording the satisfaction. 4,9) October 4, 2012 Julie Urbe Richfield HRA 6700 Portland Avenue South Richfield, MN 55423 RE: Application-Transformation loan application. Niesen-Johnson refinance 7033 Penn Avenue South, Richfield MN 55423 Dear HRA Committee, I am writing this letter to detail the circumstances of our loan refinance. It is my hope the letter along with the supporting documentation provides enough detail for the HRA to make an exception and approve the application to subordinate our current Transformation Loan. My husband Mike and I reside at 7033 Penn Avenue South. We are in the final stages of completingour home transformation/remodel which has taken over four years. We started the project with the intention of renovating our house, creating our dream home. We did not and do not have any intention of ever moving. We are both long-time residents of Richfield. In fact both Mike and I attended grade school and high school in the Richfield public school system and our daughter just graduated from Richfield High School in June. We are very connected and committed to the community. We started our remodel in 2008 with the thought of the project only taking a year, or at the most, a year and a half to complete. To minimize the amount of interest and debt we would incur we started the project with money we had saved and a small home equity line of credit. Once the savings and line of credit were used up, we intended on taking out a construction loan to finish the project. At the time we were ready to apply for the loan the economy and the housing market had entered the worst downturn since the great depression. We were unable to secure a construction loan or any other loan at a decent rate or rational terms. This left us with no other option but to self-fund the remainder of the project. Self-funding a major renovation has been challenging and in order to do this we used the only means that were available to us. The list of credit cards I am paying off were used to pay for materials, labor, and other costs associated with the house project. We have put well over $222,000.00 into the home remodel. Attached you will see a list of credit cards that will be paid off. See attached actual receipts which represent more than the amount of debt being consolidated into our home loan. All of the money we receive back has been and will be used for the sole purpose of paying back the materials and labor costs we have already put into the house. I understand our application to subordinate the loan is being denied due to the combined loan-to- value ratio exceeds 80%; however, I am hoping an exception can be made as it has been done in the past. The additional 5% is the amount of money being subordinated from the transformation loan. By doing so the city goes from third lien position to 2nd as we are paying off the current 1st mortgage and 2nd mortgage line of credit. In addition paying off the current mortgages and debt and refinancing to a much lower-rate single loan first mortgage, coupled with paying off debt 6 associated with remodeling the house, our saving is approximately$2,000.00 per month. This makes the likelihood of foreclosure that much less in theory. However, I must state in factually that we are in perfect standings with all of our creditors. The purpose of the refinance is to reduce our interest rate and monthly obligations. In addition we were told that our application was being denied because the amount of debt superior to the HRA is increasing more than 50%. If I understand this correctly, because our remodel or the amount of value we added to the house was more than 50%of the original mortgage or value of the home were denied. Isn't this what the city would hope to accomplish?A home valued at a higher rate, thus a tax based that is higher? Meaning the city is collecting more money from us,the tax payer. The home you currently have the lien against is now valued at $368,000. When the transformation loan was granted and the lien put against the house, it was only valued in the low 200's. In theory, if this provision is upheld we are being penalized for improving the value of our house over 50%. Lastly, my husband has been successful in is business endeavors and has owned his own business for over 15 years. I have been employed with the same company for over 18 years. Both our work history and financial situation is extremely stable. We hope you consider our request and approve subordinating our transformation loan. Sincerely, Heidi Niesen-Johnson and Michael Johnson Attachments: • Pay-off credit lenders • Actual receipts totaling $222,991.15(for materials, labor of work on home) • Actual Appraisal Report • Estimate for remaining insulation of Garage—will forward once I have it.