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111912completeagenda CITY OF RICHFIELD, MINNESOTA MONDAY, NOVEMBER 19, 2012 RICHFIELD MUNICIPAL CENTER 6700 PORTLAND AVENUE REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS 7:00 P.M. AGENDA Call to order Oath of Office to HRA Commissioner Doris Rubenstein Roll call 1. Approval of minutes of (1) Regular HRA Meeting of October 15, 2012 and (2) Special HRA/City Council/Planning Commission Meeting of November 1, 2012 2. HRA approval of agenda 3. Consent Calendar contains several separate items which are acted upon by the HRA in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further HRA action on these items is necessary. However, any HRA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for HRA discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of resolution authorizing purchase of real property at 6400-17th Avenue for future redevelopment S.R. No. 48 B. Consideration of approval of resolution authorizing purchase of real property at 7600 Pillsbury Avenue for future redevelopment S.R. No. 49 Notes: 4. Consideration of proposed settlement made by owner of 6320-15th Avenue of HRA New Home mortgage Staff Report No. 50 Notes: 5. Consideration of professional services contract with Stantec related to Housing Vision Process Staff Report No. 51 Notes: 6. HRA discussion items • Reschedule Monday, January 21 Regular HRA meeting due to Martin Luther King, Jr. holiday and conflict with Tuesday, January 22 Regular City Council meeting • Reschedule Monday, February 18 Regular HRA meeting due to Presidents' Day holiday 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 GG� G� Richfield, Minnesota Regular Meeting October 15, 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; Doris Rubenstein; Steven J. Quam; David Gepner Present: and Debbie Goettel Staff Present: John Stark, Acting Executive Director/Community Development Director; Karen Barton, Community Development Manager; and Cheryl Krumholz, Executive Coordinator Item #1 APPROVAL OF MINUTES OF REGULAR HRA MEETING OF SEPTEMBER 17, 2012. M/Goettel, S/Quam to approve the minutes of Regular HRA Meeting of September 17, 2012. Motion carried 5-0. Item #2 HRA APPROVAL OF AGENDA M/Sandahl, S/Rubenstein to approve the agenda. Motion carried 5-0. Item #3 CONSENT CALENDAR 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 HRA Meeting -2- October 15,2012 HRA RESOLUTION NO. 1132 RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7225 1ST AVENUE This resolution appears as HRA Resolution No. 1132. M/Gepner, S/Goettel to approve the Consent Calendar. Community Development Manager Barton explained the proposed process for the urban design plan (Item 3A). The HRA requested they be kept updated throughout the process and that the Planning Commission, City Council and Community Services Commission also be included. Commissioner Rubenstein apologized for being absent from the past three meetings due to personal commitments and stated that she has stayed informed by watching the meeting videos and through discussions with staff. Motion carried 5-0. Item #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 S.R. NO. 46 Community Development Manager Barton presented Staff Report No. 46. Matt Reiland, builder, requested support for the project. Community Development Manager Barton explained that public hearings are required when the HRA sells property. The neighborhood is notified of the public hearing and a notice is published in the Richfield Sun Current. M/Goettel, S/Sandahl to close public hearing. Motion carried 5-0. M/Sandahl, S/Quam that the following resolution be adopted and that it be made part of these minutes: HRA RESOLUTION NO. 1133 RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 7544 2nd AVENUE TO JOHNSON-REILAND BUILDERS & REMODELERS, INC. This resolution appears as HRA Resolution No. 1133. Motion carried 5-0. HRA Meeting -3- October 15,2012 Item #5 CONSIDERATION OF REQUEST FOR SUBORDINATION OF HRA TRANSFORMATION HOME LOAN AT 7033 PENN AVENUE S.R. NO. 47 Community Development Manager Barton presented Staff Report No. 47. Heidi Niesen-Johnson and Mike Johnson, homeowners, explained the financing options they used to complete the remodeling of their home. The HRA Commissioners agreed that with property values increasing in Richfield, this loan- to-value ratio will be within the Subordination and Satisfaction Policy limit soon. M/Sandahl,.S/Goettel to approve the request for subordination of the Housing and Redevelopment Authority Transformation Home Loan at 7033 Penn Avenue. Motion carried 5-0. Item #6 HRA DISCUSSION ITEMS Commissioner Gepner suggested that a bus or bike tour of Richfield Rediscovered homes be coordinated by staff. Chair Sandahl requested the HRA consider making a motion to support the Richfield Public School District 280 referenda on the November 6, 2012 General Election ballot. The HRA Commissioners agreed that education, the quality of schools and housing are linked together in the community. M/Sandahl, S/Rubenstein that the Richfield Housing and Redevelopment Authority supports the referenda. Motion carried 5-0. Acting Executive Director Stark provided an update on the Housing Vision Study, including John Shardlow as the proposed facilitator with the contract scheduled for HRA consideration in November, the proposed task force membership composition, and starting the study in January so it is uninterrupted due to the holiday season. Commissioner Quam questioned that the youthful representation appears to be a small percentage of the total task force. He also suggested the task force include access to architect or construction expertise to assist with the feasibility of ideas. Commissioner Goettel stated that she has been in contact with a futurist who specializes in housing who could assist with setting the framework of the study. Commissioner Gepner discussed the demolition of the former public works garage and Gleason Mortuary sites. Acting Executive Director Stark explained the pros and cons related to the demolition of the sites and the impact to qualify as TIF Districts. He stated that staff believes the benefits outweigh the downsides to demolition. He added the legal opinion on TIF impacts will be addressed and the facts for an informed decision at a future meeting will be presented to the City Council related to the former public works garage site and to the HRA for the Gleason Mortuary site. HRA Meeting -4- October 15,2012 Item #7 EXECUTIVE DIRECTOR REPORT None. Item #8 CLAIMS AND PAYROLL M/Rubenstein, S/Quam that the following claims and payrolls be approved: U.S BANK 10/15/2012 Section 8 Checks: 122481-122599 $ 151,691.79 HRA Checks: 31582-31598 $ 110,668.29 TOTAL $ 262,360.08 Motion carried 5-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 7:23 p.m. Date Approved: November 20, 2012 Suzanne M. Sandahl Chair Cheryl Krumholz John Stark Executive Coordinator Acting Executive Director HOUSING AND REDEVELOPMENT AUTHORITY MINUTES , 41,ieedRichfield, Minnesota G Special HRA/City Council/ Planning Commission Meeting November 1 , 2012 HRA Members Sue Sandahl, Chair; Debbie Goettel; and David Gepner Present: HRA Members: Steven Quam and Doris Rubenstein Not Present: Council Members: Debbie Goettel, Mayor; Sue Sandahl; Pat Elliott; and Fred Wroge Present: Council Member. Tom Fitzhenry Not Present: The City Council participated in a walking tour of the Lakes at Lyndale area conducted by Short Elliott Hendrickson, Inc. to begin the planning process. Date Approved: November 19, 2012 Suzanne M. Sandahl Chair Cheryl Krumholz Steven L. Devich Executive Coordinator Executive Director AGENDA ITEM#: 3A REPORT#: 48 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING NOVEMBER 19, 2012 REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON, HOUSING SPECIALISTS NAME,TITLE REPORT PRESENTER: KAREN BARTON, ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: v 1,1 REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of a resolution authorizing the purchase of real property located at 6400 17th Avenue for future redevelopment. I. RECOMMENDED ACTION: By Motion: Consideration of a resolution authorizing the purchase of real property located at 6400 17th Avenue for future redevelopment. II. BACKGROUND The property at 6400 17th Avenue was listed for sale through the Multiple Listing Service (MLS). The property is vacant and is bank-owned as a result of foreclosure. The property is located in the Cedar Avenue Corridor Redevelopment Area as identified in 2004, and is a prime candidate for acquisition to facilitate the eventual redevelopment of the Cedar Point Housing Redevelopment Area (the 6300 and 6400 blocks of 17th Avenue) and Richfield Parkway. The area is currently occupied by 28 single-family houses and is zoned MR-3, High Density Residential. Due to the need for expediency in submitting an offer, the Housing and Redevelopment Authority (HRA) Chair and Executive Director submitted an offer on 01172012 6400 17th Ave Acquisition.doc behalf of the HRA to acquire 6400 17th Avenue for $90,500. The offer was accepted by the lender. Funds are available in the Development Fund to cover the acquisition. III. BASIS OF RECOMMENDATION A. POLICY • The 2009 Richfield Comprehensive Plan Housing Goals and Policies direct the policy work related to Land Use and Community Facilities. Specifically, this acquisition is supported and encouraged by the following goals and policies, as stated in the 2009 Richfield Comprehensive Plan. o Goal: Beyond the City Center, develop identifiable nodes, corridors and gateways throughout the community. • Facilitate an intense mixed pattern of regional and community-oriented land uses along regional corridor routes including 1-494 and Cedar Avenue. • Encourage a mix of uses that serve a market in and around Richfield in community commercial nodes. • Create meeting places in multi-unit complexes to allow for interaction between its residents and between its residents and surrounding neighbors. • Improve gateways to create a visual means of welcoming people to Richfield. • In 2004 the City completed a redevelopment master plan for the Cedar Avenue Corridor area. Much of the area in the master plan, including this property, is impacted by the noise generated from the new north/south runway built at the adjacent airport. B. CRITICAL TIMING ISSUES • Staff submitted a Purchase Offer for the acquisition of 6400 17th Avenue. Because the lender received multiple offers on the property, the HRA's offer was not contingent upon HRA approval. The HRA can, however, withdraw its offer to purchase. • While redevelopment of the area is not imminent, the property is in a designated redevelopment area and the modest cost of the property provides an opportunity to further the City's and HRA's goals to redevelop the area at some point in the future. • Public Works' staff are also actively working on the possibility of constructing this segment of Richfield Parkway in the near future. Failure to purchase the property now would negatively impact the ability to proceed with that project. • The property is scheduled for a Finding of Consistency review at the Planning Commission on November 26, 2012. The HRA's approval is not required to be contingent upon a finding of consistency by the Planning Commission. C. FINANCIAL • There are sufficient funds available in the Development Fund to complete the purchase of the property. • It is anticipated that the City will reimburse the HRA for at least a large portion of the costs of acquisition when Richfield Parkway is constructed. D. LEGAL • The Purchase Agreement was reviewed by the HRA Attorney. • There are no known title conditions that would affect the purchase. IV. ALTERNATIVE RECOMMENDATION(S) • Do not authorize the acquisition of 6400 17th Avenue and instruct staff to withdraw the Purchase Agreement. This would result in the HRA losing earnest money of$2,000. V. ATTACHMENTS • Resolution • Photo of 6400 17th Avenue • Map of Acquisition Area VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A HRA RESOLUTION NO. RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6400 17TH 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 future redevelopment, said property being described as: 6400 17th Avenue South Lot 16, Block 2, Iverson's Second Addition WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to acquire real property within its area of operation; and WHEREAS, Development 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 $90,500, plus closing costs, not to exceed $95,000. 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 19th day of November, 2012. Steven J. Quam, Vice Chair ATTEST: Doris Rubenstein, Secretary 6400 17th Avenue South ' O�! y6jiaS `y�` r,±lp a, a.tif t;eta?�17 1 r �` i� a ,,,, 4 r24..-vr , . s, it . 4 r�4t>.'a pl k\ i '+� / t,4111), 4 ii I ,I *11,111 �r il'I (liilit•0 ' � .-9ad!!r _Y . amp►Y' r�,,,,r„ -Ye •• �_�• _ 3A5 Acquisition - 6400 17th Avenue South Home Depot 64th Street 640( co a 8 a v > c Q e � tO L N Target 66th Street 1•■■•Feet -� RI(l lrCtl� 0 100 200 400 Community Development Department November 14.2012 AGENDA ITEM#: 3B REPORT#: 49 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING NOVEMBER 19, 2012 REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON,HOUSING SPECIALISTS NAME,TITLE REPORT PRESENTER: KAREN BARTON, ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE / \ DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: jod:ajg ITEM FOR HRA CONSIDERATION: Consideration of a resolution authorizing the purchase of real property located at 7600 Pillsbury Avenue for future redevelopment. I. RECOMMENDED ACTION: By Motion: Consideration of a resolution authorizing the purchase of real property located at 7600 Pillsbury Avenue for future redevelopment. II. BACKGROUND In 2008, Richfield Properties LLC, Limited Partnership (working with Ron Clark Construction and Design) purchased the property at 7600 Pillsbury Avenue in anticipation of future redevelopment of the block. In 2012 the City Council voted to deny the land use application to redevelop the parcel with a Low Income Housing Tax Credit apartment project. Following that denial, Richfield Properties, LLC, contacted staff expressing an interest in selling the parcel to the Housing and Redevelopment Authority (HRA). HRA staff had an appraisal conducted in August 2012. The appraisal valued the property at $155,000. Richfield Properties, LLC had a separate appraisal done in September, which valued the property at $164,000. Richfield Properties, LLC paid 11192012 7600 Pillsbury Acquisition.doc $230,000 for the property in 2008 and is seeking the higher appraised price in the sale. The HRA and City own all but this and one other parcel in the block. Acquisition of this parcel will further attempts to successfully redevelop the block in the future. The former owner of the property has been renting the property from Richfield Properties, LLC since 2008 and wishes to continue to live in the property. The City's property management company would take over management of the property and continue to rent to the tenant under a new lease. III. BASIS OF RECOMMENDATION A. POLICY • The area is identified in the Comprehensive Plan as Medium-High Density Residential. The single family home is not consistent with this designation. • The HRA and City own all but this and one other parcel in the block. Acquisition of this parcel will further attempts to successfully redevelop the block in the future. B. CRITICAL TIMING ISSUES • Failure to acquire the property at this time may inhibit future redevelopment of the block. C. FINANCIAL • Funds are available in the Development Fund for acquisition of the ro ert • property. ichfie d Properties, LLC is proposing to sell the property, "as-is," which will require the HRA to seal the well. The estimated cost of sealing a well is $600-$800. • Richfield Properties, LLC is also asking that the rent for the current tenant be maintained at $800 (plus all utilities) for the period of one year. This rent level is below market-rate; however, it is sufficient to cover the costs of managing and maintaining the property. D. LEGAL • The Purchase Agreement was drafted by the HRA Attorney. IV. ALTERNATIVE RECOMMENDATIONS) • Do not adopt the resolution authorizing purchase of the property and ask staff to renegotiate the terms. • Do not adopt the resolution authorizing purchase of the property. V. ATTACHMENTS • Resolution • Purchase Agreement • Photo of 7600 Pillsbury Avenue. • Map indicating Comprehensive Plan designations for the block of 7600 Pillsbury Avenue. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Representative of the seller HRA RESOLUTION NO. RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 7600 PILLSBURY 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 future redevelopment, said property being described as: 7600 Pillsbury Avenue South The East 121.99 feet of Lot 1, Block 4, R.C. Soens 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, Development 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 $164,000, plus closing costs, not to exceed $170,000. 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 19th day of November, 2012. Steven J. Quam, Acting Chair ATTEST: Doris Rubenstein, Secretary PURCHASE AGREEMENT THIS PURCHASE AGREEMENT (the "Agreement") is made as of this day of November/, 1:2012, by and between Richfield Properties, LLC, ("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 ("BRA"or"Buyer"). RECITALS Seller is the owner of property located at 7600 Pillsbury Avenue South, Richfield, Minnesota,which is legally described on the attached Exhibit A("Property"). The Property 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 except personal property belonging to the existing tenant. Seller has indicated to Buyer that Seller has no personal property on the Property. Seller may remove the following items, provided Seller does not cause any unnecessary damage to the Property: AGREEMENT 1. Offer/Acceptance for Sale of Property. The Seller agrees to sell to the BRA 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 sixty-four thousand and 00/100ths Dollars ($164,000.00) (the "Purchase . Price"). B. TERMS: (1): EARNEST MONEY. The sum of Ten Thousand Dollars and 00/100ths Dollars ($10,000)(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 1 412813v4 JAE RC125-327 313 � � Date") any remaining balance of the Purchase Price due to Seller according to the terms of this Agreement. (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 2B(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 HRA 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 know of any wells on the described real property." f. Any other documents reasonably required by the HRA's title insurance company or attorney to evidence that title to the Property 2 412813v4 JAE RC125-327 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. Approval of this Agreement by the HRA's Board; and d. The existing tenant, as described in Section 10, agrees to execute a lease with Buyer to be effective as of the Closing Date. Buyer shall have until ten (10) days prior to the Closing Date to remove the contingencies listed at 3a., b., c. The HRA will work with the existing tenant to have a lease executed on the Closing Date or shortly thereafter. The contingencies at a. and b. are solely for the benefit of Buyer and may be waived by Buyer. The contingency at d.may not be waived by either party. If Buyer or its attorney gives written notice to Seller that the contingencies at a, b, and d.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 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 3 412813v4 JAE RC125-327 Agreement null and void, and the parties will thereby be released from any further obligation hereunder. 5. Environmental Investigation. The Seller is not aware that the Property has 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. 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 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 January 15, 2013. 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 the Richfield BRA Housing Specialist. 8. Possession/Utilities/Removal of Property/Escrow. 4 412813v4 JAE RC125-327 (a) Possession. The Seller agrees to deliver possession to Buyer not later than the Closing Date, subject to the right of possession of the existing tenant. (b) Utilities. The existing tenant pays the utilites related to the Property. Any past due City water and sewer charges, electricity and natural gas charges, fuel oil and liquid petroleum gas shall be pro-rated between the parties as of the Closing Date. (c) Personal Property. The Seller represents that there is no personal property located on the Property owned by Seller. All of the personal property located on the Property is the property of the existing tenant and shall remain on the Property. 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. (c) Notices. Other than the e-mail list of requested corrections received by Seller after a rental housing inspection by the City of Richfield in July 2012, Seller warrants that it has not received any notice from any governmental authority as to violation of any Iaw, ordinance or regulation in connection with the Property. (d) Broker Commission. Each party represents to the other that it has not utilized the services of any real estate broker or agent in connection with this Purchase Agreement or the transaction contemplated by this Purchase Agreement. Each party agrees to indemnify, defend, and hold harmless the other party against and in respect of any such obligation and liability based in any way upon agreements, arrangements, or understandings made or claimed to have been made by the party with any third person. (e) Property and Structures. 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, without any representations or warranty by Seller, except as expressly set forth herein. (f) Wells on Property. Seller asserts it is unaware of the location of any wells on the Property. Seller hereby grants a license to Buyer to allow Buyer to have a licensed well contractor examine the Property for purposes of locating a well prior to the Closing Date. Buyer shall bear the cost of locating and sealing any wells found on the Property. 10. Existing Lease. This Purchase Agreement is subject to the rights of a tenant who, on the date hereof, occupies all or a portion of the Property on a month-to-month basis. 5 412313v4 JAE 11G125-327 (a) The Seller shall provide the Buyer with all leases and any amendments or modifications thereto, if any, and the details of any month to month tenancies. Such information shall be delivered to Buyer for Buyer's examination within ten days after the execution of this Agreement. Buyer shall have ten days thereafter to determine, in its sole judgment, that the terms and conditions of the leases or tenancies are satisfactory to Buyer. Within such tell day period, Buyer may elect to terminate this Agreement, such election to terminate to be set forth in writing or the Buyer's right to terminate shall be deemed to be waived. Seller shall deliver all original leases and Seller's assignment of the leases to Buyer at closing. (b) The security deposit provided by the tenant is $700.00 and all terms and conditions relating to such security deposit is set forth in the applicable lease. Such security deposit, if any, and any actual and statutory interest thereon, shall be paid to Buyer at closing; and thereafter the responsibility for such security deposit, and interest thereon, shall be that of the Buyer. Seller shall provide Buyer with the tenant's home phone number. Buyer shall provide each tenant with the notice of transfer of security deposit as required by law. (c) At closing, Seller shall provide to Buyer an original Estoppel Certificate signed by the tenant,dated the same date as the closing,containing the following statements: (i) The undersigned will execute a one-year lease with Buyer with monthly rent in the amount of$800.00. (ii) The current rent is paid and no rent has been paid by the undersigned under said Lease for a period of more than thirty(30)days in advance. (iii) The undersigned pays all utilities related to the Property and there are no unpaid utilities. (iv) The undersigned has made a security deposit to Lessor in the amount of $700.00. (v) The undersigned has no right to purchase any part of the leased property. (vi) The undersigned has no right to any rent concession or rent abatement. (vii) The undersigned has no claims or causes of action against the Lessor or against the property. (viii) The tenant is not subletting the premises. (d) The rents made under the existing lease arrangement shall be prorated between Buyer and Seller as of the Closing Date. It shall be assumed that the Buyer will own the property for the entire date of the closing. (e) Other than the Tenant described in this Section 10, there are no other tenants or parties with rights to possess the Property. 11. 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 BRA. 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 6 412813v4 JAE RC125-327 charges related to the filing of any instrument required to make title marketable. Each party shall pay its own attorney fees. 12. Inspections. From the date of this Agreement to the Closing Date, HRA, 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 and the existing tenant is given at least 24 hours'notice. 13. Risk of Loss. If 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 HRA's option. At the request of the HRA, Seller agrees to sign a cancellation of Purchase Agreement. 14, 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 Cancellation is served upon the Buyer pursuant to Minn. Stat. Section 559.21,the termination period shall be thirty(30)days as permitted by Minn. Stat., Section 559.21,Subd. 4. 15. Notice. Any notice, demand, request or other communication which may or shall be given or served by the parties,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: Richfield Properties,LLC Attn: Ron Clark 7500 West 78th Street Edina,MN 55439 BUYER: Housing and Redevelopment Authority of the City of Richfield Attn: Housing Specialist 6700 Portland Avenue South Richfield, MN 55423 7 412813v4 JAE RC125-327 35 - 9 AGENT: Kennedy&Graven, Chartered ATTN: Julie Eddington and Catherine B. Rocklitz 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis,MN 55402 16. Entire Agreement. This Purchase Agreement, Exhibits, and other amendments signed by the parties, shall constitute the entire Agreement between Seller and the HRA 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. 17. Survival. Notwithstanding any other provisions of law or court decision to the contrary,the provisions of this Purchase Agreement shall survive closing for a period of one year provided written notice of breach of any warranty, agreement or covenant is given within one(1) year of the Closing Date. 8 4I2813v4 ME RC125-327 5p_1D IN WITNESS WHEREOF,the undersigned have executed this Agreement on the date and year above. Buyer: Seller: Housing and Redevelopment Authority of the Richfield Properties, LLC City of Richfield -, By: Its President Its Chair And by: Its Executive Director 9 412813v4 JAE RCI25-327 EXHIBIT A Legal Description of Property The East 121.99 feet of Lot 1,Block 4,R.C. Soens Addition,Hennepin County,Minnesota A-1 412813v3 JAB RC125-327 3.9 - I as 7600 Pillsbury Avenue South 4 I w ,•�, • ii ` • - � `i i,, iI _) 41,I?"i • • z - i 3B- I3 Comprehensive Plan Map - 7600 Block of Pillsbury -0 S CD m C CD 76th Street 4; 7600 Pillsbury HRA-owne.l HRA-owned Pr ivately-owned — u, c D N 3 • C 1 li- City-owned Legend I 77th Street L 1 Comm Commercial/Office High Density Res High Density Res/Office Medium-High Density Res Low Density Res Park November 19,2012 AGENDA ITEM#: 4 REPORT#: 50 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING NOVEMBER 19, 2012 REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON,HOUSING SPECIALIST NAME,TITLE REPORT PRESENTER: KAREN BARTON, COMMUNITY DEVELOPMENT MANAGER NAME,TITLE DEPARTMENT DIRECTOR REVIEW: `I _ .~ter, SIGNATU REVIEWED BY EXECUTIVE DIRECTOR: j .. ITEM FOR HRA CONSIDERATION: Consideration of a proposed settlement of a Housing and Redevelopment Authority New Home mortgage. I. RECOMMENDED ACTION: By Motion: Approve or deny a proposal made by the owner of 6320 15th Avenue for settlement of a $26,000 New Home mortgage in the amount of $2,600. • II. BACKGROUND On March 1, 1999 Affordable Suburban Housing sold the house at 6320 15th Avenue to Joan Bullemer through the Housing and Redevelopment Authority's New Home program. To make the home affordable, the Richfield Housing and Redevelopment Authority (HRA) provided a second mortgage in the amount of $26,000. The terms of the Loan require the homeowner to repay the loan in full, at no interest, upon sale of the property, upon default of the first mortgage, or after 30 years Due to financial and personal reasons, the owner is now attempting to sell the property to avoid foreclosure. The owner recently received an offer for $180,000. After paying off the first mortgage, fees and commissions, and closing costs, the 11192012 6320 15th Loan Settlement Request.doc settlement leaves the homeowner $117,493.24 short of covering all costs. The first mortgagor is offering the HRA a settlement of$2,600. Debt Amount Owed Proposed Settlement Settlement Ratio First Mortgage (Nationstar $253,233.74 $159,140.50 63% Mortgage) New Home Second Mortgage $26,000.00 $2,600.00 10% Seller Paid Concessions $5,250.00 $5,250.00.........................................................100%..... SettlementCharges..................................................................... ........................$13,009.50................................_$1.3,009.50......................................................._1..00%..... TOTAL $297,493.24 $180,000.00 If the HRA and the homeowner cannot reach an agreement regarding the payoff of the HRA mortgage, this property is likely to go into foreclosure; the sheriff's sale is scheduled for January 13, 2013. As a lien holder, the HRA would have the opportunity to redeem the foreclosure. To do so, however, the HRA would either have to satisfy the outstanding mortgages or negotiate a settlement with the mortgage company in first position (the same situation as the current homeowner). III. BASIS OF RECOMMENDATION A. POLICY • The HRA acts to protect its financial interests. • The Mortgage Foreclosure Response Program Procedural Guidelines, state as follows: "Staff will consider short sale offers and negotiate as high of repayment as possible. Action will be taken quickly so as to not disrupt the short sale opportunity and cause the homeowner to enter into foreclosure." • The purpose of the New Home program is to provide affordable housing to homeowners earning up to 80 percent of the Twin Cities area median income. B. CRITICAL TIMING ISSUES • If the HRA declines to settle the loan, the homeowner could face foreclosure. The sheriff's sale is scheduled for January 13, 2013. • The short sale needs to close by December 8, 2012, in order to avoid the sheriff's sale. C. FINANCIAL • The attached letter from the homeowner describes the financial difficulties she faces. • It is in the best interest of the HRA to not have the property foreclosed by the lender as the lender could then offer the HRA nothing. The HRA has a subordinated position to the primary lender. • Neighborhoods in which there are one or more foreclosed and vacant homes have detrimental impacts on the surrounding property values. • The development of the property was funded with Community Development Block Grant (CDBG) money. The HRA established the requirement that a borrower must pay back the loan at the sale of the property or after 30 years. There is no federal requirement to pay back the funds. • The HRA has received three requests for a short sale settlement in the past two years. In the first request, the HRA received $2,500 of the $25,000 lien. In the second request, the HRA received $1,000 of the $1,577 lien. In the third request, the HRA forgave the entire $8,249.95 lien. D. LEGAL • Legal counsel has confirmed the HRA's authorization under a short sale. IV. ALTERNATIVE RECOMMENDATION(S) • Deny the proposed settlement. • Propose a different settlement amount. • Authorize staff to negotiate a settlement amount within certain parameters. V. ATTACHMENTS • Letter from Joan Bullemer, 6320 15th Avenue South VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A \-\pikWIZP qikef 7-9-12 To whom it may concern: I,Joan Bullemer, do herein request assistance in the form of approval for short sale of my home. Due to circumstances beyond my control I am unable to remain current on my mortgage payments to your company. I am asking for your assistance so that I may sell my home in a short sale and prevent a foreclosure. I am a single mother of two daughters and my parents are in their 80's. Since last year with helping my daughters with college expenses, having to move both of them to and from California for school and work in addition to helping my elderly parents with medical issues I am not able to make payments or keep my home. I am in need of having to relocate to help out my elderly parents. My father is in need of open heart surgery and my elderly mother cannot care for him herself and the home. My father is also getting dementia and I need to help him maintain his home and finances as my mother is not able to do this by herself. I also have to help my younger daughter who is enrolled in college. I cannot maintain or be in both homes and help my daughter thru college at the same time. Therefore, I am requesting that you help me with the short sale of my home. I have a Real Estate agent, Kyle Litwin of Edina Realty, who's helping me with the sale of my home. We have found a buyer and they have made an offer after we had the house listed with Edina Realty. I have exhausted all other options and would truly appreciate your help with this matter! Sincerely, Joan F. Bullemer AGENDA ITEM#: 5 REPORT#: 51 Eddie STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING NOVEMBER 19, 2012 REPORT PREPARED BY: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR 1 NAME,TITLE DEPARTMENT DIRECTOR REVIEW: `I if NIIIIk .4621 lir V SIGNA REVIEWED BY EXECUTIVE DIRECTOR: M I ITEM FOR HRA CONSIDERATION: Consideration of a proposal from Stantec to provide professional services related to the Housing Visioning Process. I. RECOMMENDED ACTION: By Motion: Consider public comment and authorize staff to enter into • a Professional Services Contract with Stantec for services related to the Housing Visioning Process. II. BACKGROUND At a joint City Council, Housing and Redevelopment Authority (HRA) and Planning Commission Worksession on August 20, 2012, staff proposed going through a community process to establish a Housing Vision that could help guide future housing programs and development. At that meeting, staff suggested that a facilitator experienced in leading such a process would be helpful to ensure that the discussion could be open and engaging to a variety of participants with a variety of viewpoints. After speaking with a number of other communities that had used facilitators for various community-based planning/housing studies and after speaking with several potential facilitators, staff asked John Shardlow (of the company Stantec) to provide a proposal for facilitating the Housing Vision process. That proposal is attached. 11192012 Visioning Facilitator Staff is using its best efforts to ensure community input and involvement in the Housing Visioning process. As an initial step, a Housing Visioning page has been added to the City's website (which includes the Stantec proposal), the Richfield Sun-Current and Richfield Patch were asked to make note of the HRA's consideration of the Stantec proposal and copies of the City Council/HRA Memo related to this proposal (attached) were sent to residents with a known interest in the process. While the consideration of a Professional Services Contract does not require a "Public Hearing," staff is suggesting that public comment be considered related to this item and any other future item(s) pertaining to the Housing Visioning process. Mr. Shardlow will be present to provide a summary of Stantec's proposal and to answer any questions from HRA Commissioners, other officials and the public. If this proposal is accepted, the next major step in the Housing Visioning Process will be the identification of community members to serve on the12 to 20 member Housing Vision Task Force. In response to the attached October 11, 2012 memo, several policy makers have suggested potential Task Force members to staff. Staff will also be working with the Sun Current and Richfield Patch to seek Task Force members. III. BASIS OF RECOMMENDATION A. POLICY • During the summer 2012, the HRA, City Council and Planning Commission directed staff to undertake a Housing Visioning Process with the goal of identifying Housing Policies to guide future housing decisions in the community. B. CRITICAL TIMING ISSUES • If the proposed process were to start immediately, its progress would be interrupted by the holiday season. For this reason, staff is suggesting that the Task Force begin their formal process after January 1, 2013. C. FINANCIAL • The proposed 2013 HRA Budget has funding identified for the Housing Visioning Process. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATIONS) • Defer action on this item in order to seek further clarification. • Deny the recommended action and direct staff to seek a proposal from a different facilitator. V. ATTACHMENTS • Stantec's Housing Visioning Process Proposal • City Council Memo No. 112/HRA Memo No. 52 pertaining to the Housing Visioning Process VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Interested members of the public. • Representatives from Stantec. 111(t4V-- Stantec November 13, 2012 John Stark, Community Development Director City of Richfield 6700 Portland Avenue Richfield, MN 55423 Reference: Richfield Housing Visioning Dear John, PROJECT APPROACH The Richfield Housing Visioning Task Force will be supported in a process consisting of approximately six workshops, as they fulfill their responsibility to create and recommend a Community Housing Vision for the community. The workshops will be conducted in two hour segments organized and led by John Shardlow, who will serve as the lead facilitator. Before describing some of the specific recommendations for each of these workshops some general points should be made. First, the process will be organized to provide the task force members with a great deal of relevant information before they will be asked to identify or prioritize issues, or offer their opinions. Second, we are seeking a balance between a process that is substantial enough to be viewed as significant by the participants and the Council, but not so time consuming as to be seen as a burden to the participants, or to lead to member attrition. We are suggesting approximately seven workshops as about the right length for the process. The third point is that the process needs to be grounded in a clear set of expectations and the participants must understand their role and responsibilities and the desired outcomes and deliverables from this process. Each participant will be provided a three ring binder at the beginning of the process with dividers for each workshop. When they arrive at the workshop they will pick up the materials,which will be three-hole punched and put them in their binders. This may include a variety of materials, memoranda and reports, but it will always include a copy of the presentation for the evening, printed in a format that allows notes to be taken next to each slide. We will decide as a group if information should be distributed via email prior to the workshops. We will work with City staff to complete some of the research and we will present a significant percentage of the material to the task force, but we also anticipate bringing in 2-3 subject experts to present some of the key content. We also strongly recommend arranging for the task force members to tour 4-6 housing example projects in other parts of the Metropolitan Area. Our experience has been very positive in past projects where similar groups physically left their community and visited other project examples. This is certainly optional, but we would urge you to consider supporting such a tour. Potential Experts to Support the Process An important element early in this process is to articulate the relationship of housing and jobs and how housing has a significant impact on community and economic development. Our team will address these questions while also tapping into area experts. Stantec November 13, 2012 John Stark Page 2 of 5 Reference: Richfield Housing Visioning We contacted Cathy Bennett to ask her if she would be willing to serve as an expert resource to this process. Cathy has been working almost exclusively with ULI Minnesota, leading the Regional Council of Mayors Housing Initiative. They did some pilot community work in Richfield which could be updated and augmented by the work Jay Demma completed and other research completed by City staff. Cathy brings the added benefit of her knowledge and experience working recently in several different Metro cities. From our discussions it is clear that Richfield has a robust focus on remodeling of single family homes. So there probably isn't a need to discuss organizing a commitment to remodeling, but there is a great deal of new information and resources surrounding the Minnesota Greenstar initiative and green remodeling. Both in terms of new construction and housing retrofits there is excellent work being done locally and internationally on energy conservation and even energy generation,water use, indoor air quality, materials, neighborhood design and many other features. Someone from The Builders Association of the Twin Cities (BATC)who is familiar with the Minnesota Greenstar program and the features of new housing showcased in the Fall Parade might be considered for part of a workshop. Michael Anschel and Marc Sloot are a builder and an architect who could share this expertise and perspective with the task force. To encourage participants to expand their thinking about housing for the future, it would be positive to bring in an expert about future housing concepts. We would work with Dean Tom Fisher at the University of Minnesota to identify a speaker who could stretch the participants thinking about future housing. There is a lot of work being done at the University regarding "culturally sensitive"design. This might be an area where the task force members could be encouraged to think longer term and more creatively about the design of our housing stock. Many of the negative stereotypes associated with affordable housing stem from poor design and bad management. Someone like Mark Ulfers or a member of his staff at Dakota County Community Development Agency, or Elizabeth Ryan from the Family Housing Fund could share numerous examples that demonstrate how these problems have been avoided in projects within our region. These could also be great projects for the task force members to visit on a tour. In summary, there isn't a need to make final decisions about which experts to invite at this time. It is actually a good idea to preserve some flexibility since the process will and should be fluid and dynamic.We will strive to identify and recruit excellent presenters with important and relevant expertise who will contribute their time to this initiative. RICHFIELD HOUSING VISION PROCESS SUMMARY 1. Workshop Number 1. Kickoff, History, Current Housing Stock, Preliminary Issue Identification The kickoff will primarily consist of informing the Task Force of the process (schedule, timing, topics, etc.), their roles, and the intended outcome. Other key activities as part of Workshop#1 will include a short presentation on the history of Richfield's development(e.g., when it developed, what was the predominant type of development, what were the factors that influenced development, who were the first residents, where did they work, etc.). There will also be a summary description of Richfield's current housing stock(e.g., number of units, type of units, etc.) and overview of current HRA programs, priorities and funding. This will ground the process in reality right from the beginning. Stantec November 13, 2012 John Stark Page 3 of 5 Reference: Richfield Housing Visioning Finally, there will be a short exercise to allow the members to identify any housing issues that they consider to be most important as they begin the process. 2. Workshop Number 2. Richfield in Regional Context; Greater MSP, Demographics, Jobs/Housing connection. The focus of this workshop will be to provide the Task Force with a factual understanding of the forces that exert influence on Richfield's current supply and need for housing. These forces will be analyzed at both a regional and local level in order to provide appropriate context. We will compare Richfield to other market cities including Bloomington, Edina, St. Louis Park, South Minneapolis and others identified by the City. Information from the recent Rental Housing Inventory and ULI Opportunities Cities will be summarized and presented to the Task Force.Any additional information needed to best describe such forces will be collected from readily available sources, such as the City of Richfield, the US Census, the Met Council, etc. This meeting may also provide an opportunity for Metropolitan Council Representative Steve Elkins to share the Council's regional view on housing and how that applies to cities. 3. Workshop Number 3.The Shape of Housing in the Future—Bring in 2-3 housing experts; Family sizes, Innovation,sustainability, retro-fitting,teardowns, multi-generational housing— Tour of regional projects This workshop will introduce the full range of housing possibilities to the Task Force in order to go beyond what currently exists within Richfield. We believe multiple experts from various backgrounds (e.g., for-profit and non-profit development, academia, public sector, etc.)will be needed to best describe the continuum of possibilities. Furthermore,we believe that many of these possibilities will be best understood through a tour of regional projects in order for the Task Force to see first-hand what these projects look and feel like. This workshop could either be split into two parts, or run 4 hours instead of the normal 2 hour format. 4. Workshop Number 4. Review of innovative strategies being implemented by comparable communities locally, regionally, nationally Richfield is far from the only fully developed community facing challenges with housing. This session will provide the opportunity to review a variety of programs, initiatives and tools that comparable cities are utilizing to accomplish their community housing objectives. 5. Workshop Number 5. Issues Workshop,SWOT Analysis &Visioning Exercise This workshop will consist of two parts with the first part focused primarily of identifying key housing issues important to the Task Force through a SWOT analysis and visioning exercise.As appropriate we will revisit and incorporate the findings from Workshop#1. Stantec " -1 November 13, 2012 John Stark Page 4 of 5 Reference: Richfield Housing Visioning Members will be asked to answer a series of questions that are designed to allow them to express their opinions and aspirations in a way that will facilitate their translation in to a vision statement and/or supporting housing objectives. Once these ideas are generated members will then participate in a priority setting exercise to refine the list and capture the priorities for housing in Richfield. 6. Workshop Number 6. Navigating the New Normal We understand that the City has chosen to avail itself of the free program provided by ULI Minnesota. John Shardlow serves on the advisory panel for this program and has been a member of four panels so far. This is an excellent opportunity, but it is also important that it occurs at the right point in the overall task force process. Without the right sensitivity it could be viewed by the members as superseding their work. This would be the right place for it to be placed in the process and we will work with the panelists to get answers to any questions the task force members may have after the Navigating the New Normal session. Placing it here allows the task force members to get the benefit of this program before signing off on their recommendations to the Council. This workshop will be conducted by ULI Minnesota therefore Stantec's role will be limited to just attendance. 7. Workshop Number 7. Draft Vision Statement—Discuss and Revise We will present a draft vision statement to the Task Force and discuss with them how it should be revised to best reflect their positions. 8. Presentation to City Council Ideally we would want to be able to support the task force members in presenting their work to the City Council. The extent to which this is workable will depend on the participants and how the process unfolds. DELIVERABLES: The Consultant Team will be responsible for supporting the entire visioning process, working closely with City staff members. We will strive at every stage of the process to identify the most cost effective way to gather the required information and present it to the task force. We will produce meeting materials and prepare a template to be used for each of the workshop presentations. The power point presentations prepared for each of the workshops will be provided electronically and in printed form that allows note taking. These presentations and supporting materials will be posted on the city website. We will work with staff to coordinate all materials for use on the City's desired social media outlet. Stantec November 13, 2012 John Stark Page 5 of 5 Reference: Richfield Housing Visioning The consultants will meet with every expert guest speaker and brief them on the purpose of the process and their role within it, the format and length of presentation. We will preview every presentation before it is given to the task force—without exception. The final deliverable from the process will be a document with a housing vision statement for the City of Richfield. This over-arching vision will be supported by several housing objectives, each tied to recommendations from the task force regarding their implementation. COST OF SERVICES: PROJECT INITIATION Initial organization, setup,workshop planning, meeting materials, presentation templates, research and coordination. $6,620.00 WORKSHOP SESSIONS Planning meetings and discussions with staff; session specific research, graphics and coordination, prepare presentation and meeting materials;Assume Principal and Senior Planner at all workshops and assuming eight sessions. $9,912.00 FINAL DELIVERABLES Meetings with staff, writing alternative vision statements and housing objectives, review, revise and publish final recommendations, prepare and present to City Council with task force members. $6,550.00 TOTAL COST: $23,085 Schedule Stantec is flexible to meet the City's desired timing on this effort. With the suggested course of meetings a 4-6 month time period would be reasonable. Regards, 4-�!. X31-• John Shardlow, FAICP CITY OF RICHFIELD, MINNESOTA Office of City Manager October 11, 2012 Council Memorandum No. 112 HRA Memorandum No. 52 The Honorable Mayor Housing & Redevelopment and Authority Commissioners Members of the City Council City of Richfield Subject: Housing Vision Council Members and Commissioners: At a joint City Council, Housing and Redevelopment Authority (HRA) and Planning Commission Work Session on August 20, 2012 staff proposed going through a community process to establish a Housing Vision that could help guide future housing programs and development. At that meeting, staff suggested that a facilitator experienced in leading such a process would be helpful to ensure that the discussion could be open and engaging to a variety of participants with a variety of viewpoints. After speaking with a number of potential facilitators, staff has asked John Shardlow(of the company Stantec) to provide a proposal for facilitating the Housing Vision process. The final proposal will be provided to policy makers once it is received (anticipated within the next ten days). In discussions with Mr. Shardlow, he is recommending that the Housing Visioning process be led by a Task Force of approximately 12 —20 people who would meet for six two-hour meetings over a period of about three months. Some of the "stakeholders" that staff is suggesting as participants would include: • Parent of school aged children • Leader in the faith community • Youthful Renter • Attainable Housing Committee • Youthful Homeowner Member • Senior Renter • Member of the Richfield • Senior Homeowner Apartment Managers Association • Empty Nester (RAMA) • School Board Member or School • Social Service Provider Faculty • Member of Richfield Commoners • Real Estate Agent United Ideally, many Task Force members would fit more than one of these descriptors. Staff is in the process of identifying individuals who might fit these descriptions and would welcome suggested names from policy makers. In addition to Task Force members, elected and appointed officials, as well as the general public would be invited to attend the Housing Visioning sessions. If this three month process were to start immediately, its progress would be interrupted by the holiday season. For this reason, staff is suggesting that the Task Force begin their formal process after January 1. Staff has also begun identifying "experts"that would serve as speakers/resources to the Task Force; in some cases, staff has had conversations with these individuals to determine their availability and interest in participating. Among of these experts are: Myron Orfield (University of Minnesota Law Professor and regional growth expert), Gordon Hughes (former Edina City Manager who presents a dialog about the future of housing entitled, "The New Normal") and Cathy Bennett (Urban Land Institute/Regional Council of Mayors Consultant). As a next step, the Richfield HRA will be asked to consider entering into a Professional Services Agreement with Stantec to serve as the Housing Visioning facilitator at its November meeting. Staff is recommending the HRA take on the authorizing role as the HRA is the body specifically charged with developing a housing policy and because the 2013 proposed HRA budget includes funding for these costs while the proposed 2013 City budget does not. In the coming weeks, staff will develop (with policy maker input) a list of potential Housing Vision Task Force Members for the HRA to consider for selection at the November or December HRA meeting. R pectf Ily submitted, Ste -n . Devic 44FC -• •" City Manager SLD:cak Email: Department Directors Assistant City Manager Copy: Planning Commission