08-20-07 Agenda
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CITY OF RICHFIELD, MINNESOTA
MONDA V, AUGUST 20, 2007
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
RICHFIELD CITY HALL
COUNCIL CHAMBERS
6700 PORTLAND AVENUE
7:00 P.M.
AGENDA
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Call to order
Roll call
1. Approval of minutes of (1) Regular HRA Meeting of July 16, 2007 and (2) Special HRA
Meeting of July 30, 2007
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 is necessary.
However, any HRA Commissioner may reguest 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 6744 Blaisdell
Avenue through New Home Program S.R. No. 32
Notes:
4. Public hearing regarding resolution authorizing sale of 7201 Nicollet Avenue and
approving contract with Greater Metropolitan Housing Corporation for development of
two single-family homes
Staff Report No. 33
Notes:
5. Presentation and acceptance of Richfield HRA Tax Increment District status update
Staff Report No. 34
Notes:
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6. Consideration of revised subordination policy for HRA loans
Staff Report No. 35
Notes:
7. Discussion of HRA financial report
Notes:
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8. Consideration of resolutions approving 2008 proposed HRA budget and tax levy and
2007 revised HRA budget
Staff Report No. 36
Notes:
9. Executive Director report
10. Claims and payroll
Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be
made at least 96 hours in advance to the City Clerk at 612-861-9738.
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AGENDA ITEM #
REpORT #
Consent
32
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STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
AUGUST 20, 2007
REpORT PREPARED By:
VANESSA HAIGHT, HOUSING SPECIALIST
NAME, TITLE
REpORT PRESENTER:
VANESSA HAIGHT, HOUSING SPECIALIST
DEPARTMENT DIRECTOR REVIEW:
t1L
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTO .
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ITEM FOR HRA CONSIDERATION:
Consideration of a resolution authorizing the purchase of real property located at 6744
Blaisdell Avenue for a New Home Pro ram ro'ect.
I.
RECOMMENDED ACTION:
By Motion: Approve the attached resolution authorizing the purchase
of real property located at 6744 Blaisdell Avenue through the New
Home Pro ram.
I II.
BACKGROUND I
The owner of 6744 Blaisdell Avenue approached staff and expressed interest in
selling their property to the Housing and Redevelopment Authority (HRA). Built in
1929, the house at 6744 Blaisdell Avenue is a 440-sq. ft. rambler and is in need of
considerable repairs. The lot is 47 x 128 ft.
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If approved, the HRA would purchase the property, demolish the existing building,
and enter into an agreement with Twin Cities Habitat for Humanity (HFH) to
construct a new home on this property under the HRA's New Home Program. The
agreement and house plans would be presented to the HRA for a fall 2007 or a
spring 2008 construction start. HFH would construct a new home to be sold to a
low-income buyer.
0716076744 Blaisdell
lB.
The purchase price of the property has been determined to be $125,000 based on
an independent appraisal report. A total of $80,000 in Community Development
Block Grant (CDBG) funds will be applied toward the acquisition. The remaining
$45,000 would come from the HRA's Housing Fund. This expense was anticipated
in the 2007 Revised Budget.
BASIS OF RECOMMENDATION I
I A. POLICY I
. A stated goal of the Richfield 2020 plan is to "sustain, expand, and
continuously improve our housing assets." Acquiring this property would
allow the replacement of a functionally obsolete and deteriorated property
with a newly constructed affordable home.
. The HRA has demonstrated success through its New Home program in
removing housing in poor conditions and providing affordable
replacement housing for families.
. The purchase requires the Planning Commission to consider a finding of
consistency with the Comprehensive Plan. Such a finding was made
November 27,2006.
CRITICAL ISSUES I
. The owner has expressed a need to sell and requests an action by the
HRA at this time.
. A poor quality house will be replaced by a new home.
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I III.
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I C. FINANCIAL I
. Funding is available to acquire the property as outlined above.
I D. LEGAL I
. Legal counsel has reviewed the purchase agreement.
I IV. ALTERNATNE RECOMMENDATION(S) I
. Do not authorize the purchase of the property.
I V. ATTACHMENTS
. Resolution
I VI, PRINCIPAL PARTIES EXPECTED AT MEETING
. N/A
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HRA RESOLUTION NO.
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RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY
LOCATED AT 6744 BLAISDELL AVENUE SOUTH
UNDER THE NEW HOME PROGRAM
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:
6744 Blaisdell Avenue South
Lot 3, Block 2, Oaklane Addition, Hennepin County
WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to
acquire real property within its area of operations; and
WHEREAS, a purchase price has been negotiated based on independent appraisal;
and
WHEREAS, Community Development Block Grant and local HRA funds are
available for acquisition purposes.
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NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows
1. The purchase price for the property at 6744 Blaisdell is approved at $125,000
with $80,000 being funded by Community Development Block Grant funds and
$45,000 being funded by the Housing Fund.
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2. "The Chairperson and Executive Director are authoriz,ed to execute purchase
agreements 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 this 20th day of August, 2007.
Suzanne M. Sandahl, Chair
ATTEST:
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Donna Drummond, Secretary
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AGENDA ITEM #
REpORT #
4
33
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STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
AUGUST 20, 2007
REpORT PREPARED By:
VANESSA HAIGHT, HOUSING SPECIALIST
NAME, TITLE
REpORT PRESENTER:
VANESSA HAIGHT, HOUSING SPECIALIST
DEPARTMENT DIRECTOR REVIEW:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTO
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ITEM FOR HRA CONSIDERATION:
Public hearing regarding the sale of 7201 Nicollet Avenue to Greater Metropolitan Housing
Cor oration for develo ment of two sin le-famil homes.
I. RECOMMENDED ACTION:
Conduct and close the public hearing and by motion: Adopt the
attached resolution authorizing the sale of 7201 Nicollet Avenue and
approval of a contract with Greater Metropolitan Housing Corporation
for development of two sin le-famil homes.
I II.
BACKGROUND "
In March 2007 the Housing and Redevelopment Authority (HRA) purchased the
substandard property at 7201 Nicollet Avenue. It is proposed that the HRA sell the
property to Greater Metropolitan Housing Corporation (GMHC) to build two new
single-family homes under the New Home Program. Established in 1978, the New
Home Program allows the HRA to purchase substandard property, demolish the
existing home and sell the property to a nonprofit developer with plans to build a
new construction affordable home. Forty-four new homes have been constructed
under this program.
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082007 7201 Nicollet
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The completed homes will be sold to West Hennepin Affordable Housing Land Trust
(WHAHL T). WHAHL T provides affordable housing opportunities to low and
moderate income households. Using the land trust model, WHAHL T retains
ownership of the land, selling only the structure(s) to qualifying households. The
homeowner leases the land from WHAHL T under a 99-year lease. In many
situations, retaining the value of the land is not enough to price the home at an
affordable level. WHAHL T seeks and is awarded funding from the County, State,
and private investors to write down the sale price of the home to the level required.
One of the new homes will be sold to a qualifying family earning less than 80% of
area median income ($59,600 for a household of four). The other will be sold to a
qualifying family earning less than 50% AMI ($39,250). In 2005, the HRA was
awarded $80,000 in Affordable Housing Incentive Funds (AHIF) to be used toward
the development of permanently affordable housing in Richfield. Half of the award,
$40,000, will be applied to the home to be sold to a family earning 50% AMI (the
other half will be applied to a 2008 project). The AHIF award requires sale to a
household earning less than 50% AMI and requires the home be permanently
affordable. To ensure permanently affordable, the HRA and GMHC will partner with
WHAHL T.
.
A neighborhood meeting was held on July 18, 2007. Staff presented a construction
schedule, details on the sale of the homes, and conceptual building plans. Two
households attended the meeting and expressed support for the project and the
conceptual building plans. Representatives from GMHC and West Hennepin
Affordable Housing Land Trust were present to answer specific question on
construction and the land trust model.
In September, the HRA will review a Housing Services Agreement with WHAHL T.
The agreement will address the use of AHIF dollars by WHAHL T on behalf of
Richfield HRA. After the contract between the HRA and GMHC is signed, WHAHL T
and GMHC will enter into a purchase agreement to secure the purchase of the two
homes by WHAHL T.
I III. BASIS OF RECOMMENDA nON I
I A. POLICY I
. The HRA has partnered with non-profit developers to construct 44
affordable homes since 1978.
. The HRA acquired the property with federal CDSG funds and Housing
Fund dollars to initiate an affordable housing opportunity.
. The terms of the Development Agreement have been finalized and are
in conformance with the program guidelines.
. GMHC has evidenced experience, capability, and financial security
and has previously constructed housing on behalf of the HRA at 6329
14th Avenue.
.
.
lB.
CRITICAL ISSUES. I
. Demolition of the existing home will occur in early fall.
. The existing two-car garage will remain but will be restored to match
the new home on the corner lot.
. GMHC will begin construction in the fall and sell the homes to
WHAHL T in early 2008. WHAHL T will sell the homes to qualifying
buyers shortly thereafter. WHAHL T begins identifying buyers before
construction begins.
Ic. FrnANC~L I
. $100,000 in CDBG funds was used by the HRA to acquire the
property as part of the New Home Program
. $82,000 was contributed by the HRA to acquire the property.
· $40,000 in County Affordable Housing Initiative Funds will be applied
toward the sale price of one home. The HRA received this funding in
2005 and must spend it as soon as possible.
. The new homes would not be affordable if HRA did not contribute to
the project through land acquisition.
.
I D. . LEGAL I
. Notice of public hearing on the sale of the property was published
August 9,2007 in the Sun-Current.
. This is a contract similar to one used previously with GMHC.
. It has been reviewed by legal counsel.
I IV. ALTERNATIVE RECOMMENDATION(S) I
. Do not proceed with the Development Agreement with GMHC and direct staff
to find another buyer.
I V. ATTACHMENTS
. Resolution
. Contract for Development
. Conceptual Plans
I VI. PRINCIPAL PARTIES EXPECTED AT MEETrnG I
. Bill Buelow, Greater Metropolitan Housing Corporation
.
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HRA RESOLUTION NO.
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT
7201 NICOLLET AVENUE SOUTH TO GREATER METROPOLITAN HOUSING
CORPORATION IN ACCORDANCE WITH A DEVELOPMENT AGREEMENT
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 New Home Program adopted by the HRA, said real property being
described as follows:
Address Legal
7201 Nicollet Avenue SLots 11 and 12, Block 3, WOODDALE SECOND ADDITION,
Hennepin County, Minnesota
WHEREAS, the HRA is authorized to sell real property within its area of operation
after public hearing; and
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WHEREAS, a developer, Greater Metropolitan Housing Corporation (GMHC), has
been identified as the purchaser of the described property and in accordance with a
Development Agreement; 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:
1. A public hearing has been held and 7201 Nicollet Avenue South is authorized to be
sold for $1.00 to Greater Metropolitan Housing Corporation in accordance with a
Development Agreement with the HRA.
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
Greater Metropolitan Housing Corporation.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of August, 2007.
Suzanne Sandahl, Chair
ATTEST:
.
Donna Drummond, Secretary
082007 7201 Nicollet
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CONTRACT FOR DEVELOPMENT
Between
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESO';fA
and
GREATER METROPOLITAN HOUSING CORPORATION
at
7201 NICOLLET AVENUE SOUTH, RICHFIELD
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
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CONTRACT FOR DEVELOPMENT
THIS AGREEMENT, made and entered into as of this 20th of August, 2007, by and
between the Housing and Redevelopment Authority in and for the City of Richfield, a body
corporate and politic under the laws of the State of Minnesota, having its principal office at 6700
Portland Avenue, Richfield, Minnesota (HRA), and Greater Metropolitan Housing Corporation
(GMHC), a non-profit corporation under the laws of Minnesota, having its principal office at 15
South Fifth Street, Suite 710, Minneapolis, MN 55402 (Developer).
WITNESSETH: WHEREAS, the HRA has purchased the property at 7201 Nicollet Ave
South, Richfield, legally described as Lots 11 and 12, Block 3, Wooddale Second Addition,
Hennepin County (the Property), for the purpose of providing affordable housing in the City; and
WHEREAS, the Developer has proposed the Improvements, as hereinafter defined, for the
Property which the BRA has determined will promote and carry out the objectives for which the
Property was purchased; will assist in carrying out the objectives of the New Home Program; and
will be in the vital best interests of the City, and the health, safety and welfare of its residents and in
accord with the . public purposes and provisions of the applicable state and local laws and
requirements.
NOW, THEREFORE, in consideration of the mutual covenants and obligations of the
HRA and the Developer, 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:
(a) City. The City of Richfield, Minnesota.
(b) Construction Plans. Collectively, the plans, drawings and related documents
related to the Improvements, which are listed on Exhibit A.
(c) Develooer. Greater Metropolitan Housing Corporation (GMHC).
(d) Develooment. The Property and the Improvements to be constructed thereon
according to the Construction Plans approved by the HRA.
(e) HRA. The Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota.
. r '~. (f) Housin!! and Redevelooment Authorities Act (BRA Act). Minriesota Statutes
Sections 469.001 through 469.047.
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(g) Improvements. Each and all of the structures and site improvements constructed or
renovated on the Property by the Developer, as specified in the Construction Plans approved by the
BRA.
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(h) Mort2a2e and Holder. The term "mortgage" shall include the mortgages referenced
in Article VI of this Agreement and any deed of trust or other instrument creating an encumbrance
or lien upon the Property of any part thereof, as security for a loan. The term "holder" in reference
to a mortgage includes any insurer or guarantor (other than the Developer) of any obligation or
condition secured by such mortgage or deed of trust.
(i) New Home Pro2ram. BRA program to encourage development of new housing
opportunities for low to moderate income buyers.
(j) Qualified Buver. The West Hennepin Affordable Housing Land Trust, a Minnesota
nonprofit corporation, or other buyer as approved by the BRA.
(k) Unavoidable Delavs. 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 Developer.
Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a part
of this Agreement:
.
A. List of Construction Plan Documents
B. Form of Quit Claim Deed
C. Form of Certificate of Completion
D. Sale Requirements
E. Summary of Responsibilities of HRA and Developer
Section 1.3 Rules of Interoretation.
(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
prOVlSlons.
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ARTICLE II.
REPRESENTATIONS AND UNDERTAKINGS
Section 2.1 Bv the DeveloDer. The Developer makes the following representations and
warranties as the basis for undertakings on its part herein contained:
(a) The Developer has the legal authority and power to enter into this Agreement, and
has duly authorized the execution, delivery and performance of this Agreement; and the
individual(s) who execute this Agreement on behalf of the Developer have the power and authority
to bind the Developer;
(b) The Developer has the necessary equity capital or will obtain commitments for
fmancing necessary for construction of the Improvements;
(c) The Developer will construct the Improvements in accordance with the terms of this
Agreement, the Construction Plans, and all local, state and federal laws and regulations;
(d) The Developer 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; and
(e)
architect.
The plans for the. Improvements have been prepared by a qualified draftsperson or
Section 2.2 Bv the BRA. The BRA makes the following representations as the basis for
the undertaking on its part herein contained:
(a) The BRA is authorized by law to enter into this Agreement, to carry out its
obligations hereunder, and the individuals who execute this Agreement on behalf of the BRA have
the power and authority to bind the BRA; and
(b) The BRA will, in a timely manner, subject to all notification requirements, review
and act upon all submittals and applications of the Developer and will cooperate with the efforts of
Developer to secure the granting of any permit, license, or other approval required to allow the
construction of the Improvements; provided, however, that nothing contained in this subparagraph
2.2(b) shall be construed to limit in any way the reasonable and legitimate exercise of the BRA's
discretion considering any submittal or application.
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ARTICLE III.
ACQUISITION OF PROPERTY; CONVEYANCE TO DEVELOPER
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Section 3.1 Sale of Property to Developer. The HRA is the fee owner of the Property.
The HRA agrees to sell the Property to the Developer and the Developer agrees to purchase the
Property from the HRA in "as-is" condition. The HRA agrees to convey the Property to the
Developer by Quit Claim Deed in the general form of Exhibit B. The purchase price for the Property
will be $1.00.
Section 3.2 Title and Examination. The HRA will provide the Developer with an abstract
of title or registered property abstract regarding the. Property within 20 days of the date of execution
of this Agreement. In the absence of an abstract of title or registered property abstract, the HRA
will provide a title commitment and title insurance. The Developer shall have 10 days from the date
of receipt of the abstract, registered property abstract or commitment for title insurance to make
written objection to the condition of title. If the Developer fails to make timely objections in
writing, all objections to title shall be deemed to be waived. The HRA shall have 30 days after
receipt of Developer's written objections to clear title to the Property but the HRA shall have no
obligation to clear title. Ift4e HRA does not or cannot clear title to the Developer's satisfaction, the
Developer. may terminate this Agreement or proceed to closing. If the Developer proceeds to
closing, all title objections will be deemed to be waived. The HRA shall pay at closing all costs.
incurred by the HRA in extending the abstract of title or registered property abstract and correcting
defects related thereto. At closing the HRA shall also pay the amount of the transfer tax (state deed
tax and conservation fee) payable on the deed conveying the Property to the Developer and the
amount of any transfer tax or recording fees for documents necessary to vest title in the HRA.
e
Section 3.3 Closine:. Closing on the Property will take place on or before September 30,
2007, or such other date as may be agreed to by the parties in writing. At closing, the Developer
will provide the HRA with payment for the Property. If closing has not occurred by September 30,
2007, either party may terminate this Agreement.
Section 3.4. Taxes and Special Assessment. Real estate taxes will be prorated between the
HRA and the Developer as of the date of closing. Levied and pending special assessments, if any,
will be satisfied at the time of closing and the Property will be transferred to the Developer free and
clear thereof.
Section 3.5 Soil Conditions and Hazardous Wastes. The Developer acknowledges that
the HRA makes no representations or warranties as to the conditions of the soils on the Property, its
fitness for construction of the Improvements or any other purpose for which the Developer may
make use of the Property, or regarding the presence of hazardous wastes, pollution or contamination
on the Property. The HRA will allow reasonable access to the Property for the Developer to
conduct such tests regarding soil conditions and hazardous wastes as the Developer may desire.
Permission to enter the Property to conduct such tests must be given in writing under the terms and
conditions established by the HRA.
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Section 3.6. Trees. All healthy trees will be saved and protected by the Developer during
construction, to the extent possible, except those that specifically interfere with the construction of
the Improvements. Trees requested to be removed must be identified by type on the site plan
provided by the Developer.
Section 3.7. Sale to Oualified Buver: Covenant on Use. The Developer agrees to convey
the Property and Improvements to a Qualified Buyer within 120 days of completion or after that
time as agreed upon by the parties. The Developermust obtain the HRA's prior approval of the
terms and conditions ofthe purchase agreement with the Qualified Buyer, and the agreement terms
and conditions must be consistent with a housing services agreement to be executed by the HRA
and Qualified Buyer. This Agreement constitutes a covenant on the part of the Developer, its
successors and assigns, to use the Property and Improvements for owner-occupied, single-family
residential purposes as permitted by the City.
ARTICLE IV.
CONSTRUCTION OF IMPROVEMENTS
Section 4.1. Construction of Imurovements. The Developer shall construct the
Improvements on the Property in accordance with the Construction Plans, for $442,050, and shall
maintain, preserve and keep the Improvements in good repair and condition until sale of the
Property to a Qualified Buyer.
Section 4.2. Buildin2: Plans. No building permit will be issued by the City unless the
Construction Plans are in conformity with this Agreement, and all local, state and federal
regulations. The HRA shall, within 25 days of receipt of Construction Plans submitted in
application for a building permit, review such Construction Plans to determine whether the
foregoing requirements have been met. If . the HRA determines such Construction Plans to be
deficient, it shall notify the Developer in writing stating the deficiencies and the steps necessary for
correction. Issuance of the building permit by the City with the approval of the HRA shall be a
conclusive determination that the Construction 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 March 31, 2008. All construction shall be in conformity
with the approved Construction Plans. Periodically during construction the Developer 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 Developer will be unable to complete construction of the Improvements in the time permitted by
this Section 4.3, it may notify the Developer and demand assurances from the Developer regarding
the Developer'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 specific in Section 8.2 of this Agreement.
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Section 4.4 Certificate of Completion. Promptly after notification by the Developer of
completion of construction of the Improvements, the BRA shall inspect the construction to
determine whether the Improvements have been completed in accordance with the Construction.
Plans and the terms of this Agreement, including the date of the completion thereof. In the event
that the HRA is satisfied with the construction, the HRA shall furnish the Developer with a
Certificate of Completion in the form attached hereto as Exhibit C. Such certification by the HRA
shall be a conclusive determination of satisfaction and termination of the agreements and covenants
in this Agreement with respect to the obligation of the Developer to construct the Improvements.
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The certification provided for in this Section 4.4 shall be in recordable form. If the HRA
shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the
HRA shall Within 15 days of such notification provide the Developer with a written statement,
indicating in I;1.dequate detail in what respects the Developer has failed . to complete the
Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the
HRA, for the Developer 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, the Developer shall be liable to the HRA
for the amount of the HRA'g expenses as liquidated damages. As security for the obligations
created in this Section 4.5 and in Section 3.2, this Agreement shall be recorde4 and survive closing.
The security shall be retained by the HRA until the closing on the sale of the Property from the
Developer to the Qualified Buyer. The provisions of this Section 4.5 shall not be construed to
prejudice or limit any additional rights of the HRA under Article VIII of this Agreement.
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. ARTICLE V.
INSURANCE
Section 5.1 Insurance. The Developer will provide and maintain or cause to be provided
and maintained at all times during the process of constructing the Improvements and, from time to
time at the request of the HRA, furnish the HRA with proof of payment of premiums on:
(a) Builder's risk insurance, written on the so-called "Builder's Risk -- Completed Value
Basis," in an amount equal to 100% of the insurable value of the Improvements at the date of
completion, and with coverage available in non-reporting form on the so-called "all risk" form of
policy;
(b) Comprehensive general liability insurance (including operations, contingent liability,
operations of subcontractors, completed operations and contractual liability insurance) together with
an Owner's Contractor's Policy with limits against bodily injury and property damage of not less
than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess
liability policy may be used); and
(c)
Workers' compensation insurance, with statutory coverage.
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The policies of insurance required pursuant to clauses (a) and (b) above shall be in form and
content satisfactory to the BRA and shall be placed with financially sound and reputable insurers
licensed to transact business in Minnesota. The policy of insurance delivered pursuant to clause (a)
above shall contain an agreement of the insurer to give not less than thirty (30) days advance notice
to the HRA in the event of cancellation of such policy or change affecting the coverage thereunder.
ARTICLE VI.
FINANCING
,Section 6.1 Financine:. Within 15 days of the date of execution of this Agreement, the
Developer shall submit to the HRA evidence of financing for the Improvements in compliance with
the provisions of Section 2.1 (b) of this Agreement. If the HRA finds that the financing is adequate
in amount to provide for the construction of the Improyements, the HRA shall notify the Developer
of its approval.
If the HRA rejects the evidence of financing as inadequate, the Developer shall have 30 days
or such additional period of time as the Developer may reasonably require from the date of such
notification to submit evidence of financing satisfactory to the HRA. If the Developer 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 further obligation or liability hereunder,
except for the HRA's remedies pursuant to Section 4.5 of this Agreement.
Section 6.2 Limitation UDon Encumbrance of ProDertv. Prior to the issuance of the
Certificate of Completion, neither the Developer nor any successor in interest to the Property or any
part thereof shall engage in any financing or any other transaction creating any Mortgage or other
encumbrance or lien upon the Property, whether by express agreement or operation of law, or suffer
any encumbrance of lien to be made on or attached to the Property other than the liens or
encumbrances attached for the purposes of obtaining funds to the extent necessary for making the
Improvements without the prior written approval of the HRA. The HRA shall not' approve any
Mortgage which does not contain terms which conform to the terms of this Article VI and Section
8.2 of this Agreement.
Section 6.3 Subordination. In order to facilitate obtaining financing for the construction of
the Improvements by the Developer, the HRA shall agree to modify this Agreement in the manner
and to the extent it deems reasonable, upon request by the financial institution and the Developer.
ARTICLE VII.
PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER
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Section 7.1 ReDresentation as to RedeveloDment. The Developer 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 Developer 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
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Development possible, the qualification and identity of the Developer are of particular concern to
the HRA. The Developer 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 Developer for the faithful performance of all undertakings
and covenants agreed by the Developer to be performed.
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Section 7.2 Prohibition A2:ainst Transfer of Property and Assismment of A2:reement.
For the reasons set out in Section 7.1 of this Agreement, the Developer represents and agrees that,
except for associating with other individuals or entities, prior to the issuance of the Certificate of
Completion by the HRA:
(a) Except only by way of security for, and only for the purpose of obtaining financing
necessary to enable the Developer or any successor in interest to the Property, or any part thereof, to
perform its obligations with respect to the Development under this Agreement, and any other
purpose authorized by this Agreement, the Developer, except as so authorized, has not made or
created, and that it 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 !IRA; and
(b) The HRA shall be entitled to require, except as otherwise provided in this
Agreement, as conditions to any such approval under this Section 7.2 that: (i) Any proposed
transferee shall have the qualifications and [mancial responsibility, as determined by the HRA,
necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer or,
in the event the transfer is of or relates to part of the Property, such obligations to the extent that
they relate to such part. (ii) Any proposed transferee, by instrument in writing satisfactory to the
HRA and in form recordable among the land records, shall for itself and its successor and assigns,
and specifically for the benefit of the HRA, have expressly assumed all of the obligations of the
Developer under this Agreement and agreed to be subject to such obligations, restrictions and
conditions or, in the event the transfer is of, or relates to part of the Property, such obligations,
conditions, and restrictions to the extent that they relate to such part; provided, that the effect that
any transferee of, or any other successor in interest whatsoever to, the Property or any part thereof,
shall, for whatever reason, not have assumed such obligations or agree to do so, shall not, unless and
only to the extent otherwise specifically provided in the Agreement or agreed to in writing by the
HRA, relieve or except such transferee or successor from such obligations, conditions, or
restrictions, or deprive or limit the HRA of or with respect to any rights or remedies or controls with
respect to the Property of the construction of the Improvements; it being the intent of this Section
7.2, together with other provisions of this Agreement, that to the fullest extent permitted by law and
equity and excepting only in the manner and to the extent specifically provided otherwise in the
Agreement no transfer of, or change with respect to, ownership in the Property or any part thereof,
or any interest therein, however consummated or occurring, whether voluntary or involuntary, shall
operate, legally or practically, to deprive or limit the HRA, or any rights or remedies or controls
provided in or resulting from this Agreement with respect to the Property and the construction of the
Improvements that the HRA would have had, had there been no such transfer or change. (iii) There
shall be submitted. to the HRA for review all instruments and other legal documents involved in
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effecting transfers described herein, and if approved by the HRA, its approval shall be indicated to
the Developer in writing.
In the absence of specific written agreement by the HRA to the contrary, no such transfer or
approval by the HRA thereof shall be deemed to relieve the Developer from any of its obligations
with respect thereto. The sale of the Development to the Qualified Buyer shall not be deemed to be
a transfer within the mea,ning of this Section 7.2.
Section 7.3 Approvals. Any approval required to be given by the HRA under this Article
VII may be denied only in the event that the HRA reasonably determines that the ability of the
Developer to perform its obligations under this Agreement will be materially impaired by the action
for which approval is sought.
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, anyone or more of the following events:
(a) Failure by the Developer to pay when due the payments required to be paid or secured
under any provision of this Agreement;
(b) Failure by the Developer to complete the Improvements by March 31, 2008, absent any
Unavoidable Delay;
(c) Failure by the Developer 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;
(d) Failure by the Developer to close with a Qualified Buyer within 120 days of completion
or after that time as agreed upon by the parties.
(e) If the Developer 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;
(f) If the Developer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt,
or a court of competent jurisdiction shall enter an order of decree appointing, without the consent of
the Developer, a receiver of the Developer or of the whole or substantially all of its property, or
approve a petition filed against the Developer seeking reorganization or arrangement of the
Developer 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
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(g) If the Development is in default under any Mortgage and has not entered into a work-out
agreement with the Mortgagee.
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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 anyone or
more of the following actions following written notice by the HRA to the Developer as provided in
Section 9.4 of this Agreement:
(a) suspend its performance under this Agreement until it receives assurances from the
Developer, deemed reasonably adequate by the HRA, that the Developer will cure its default and
continue its performance under this Agreement;
(b) cancel or rescind this Agreement;
(c) withhold the Certificate of Completion; or
(d) take whatever action at law or in equity may appear necessary or desirable to the HRA to
collect any payments due under this Agreement, or to enforce performance and observance of any
obligation, agreement, or covenant of the Developer 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 Mortgagee succeed by foreclosure of
the Mortgage or deed in lieu thereof to the Developer's interest in the Property, it shall,
notwithstanding the foregoing, be obligated to perform th~ following obligations of the Developer
only to the extent that the same have not therefore been performed by the Developer: Sections 3.3
through 3.7; Sections 4.1 through 4.5; Sections 5.1. Said Mortgagee, upon foreclosure or taking of a
deed in lieu, shall have no obligations pursuant to this Agreement other than as specifically set forth
in the foregoing sentence.
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Section 8.3 No Remedv 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 Developer 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 8.4 No Additional Waiver Imolied bv 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.
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ARTICLE IX.
ADDITIONAL PROVISIONS
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Section 9.1 Conflict of Interests: Reuresentatives Not Individuallv 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
Developer, or any successor in interest, for any Event of Default by the HRA or for any amount
which may become due to the Developer 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 Developer as though fully set forth
herein.
Section 9.3 Notice of Status and Conformance. At such time as all of the provisions of
this Agreement have been fully performed by the Developer, the HRA, upon not less than ten days
prior written notice by the Developer, agrees to execute, acknowledge and deliver, without charge to
the Developer or to any person designated by the Developer, a statement in writing in recordable
form certifying the extent to which this Agreement has been performed and the obligations
hereunder satisfied.
Section 9.4 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:
(a) As to the HRA:
Richfield HRA
Executive Director
6700 Portland Avenue South
Richfield, MN 55423
(b) As to the Developer:
Greater Metropolitan Housing Corporation
Attn: Carolyn E. Olson, President
15 South Fifth Street, Suite 710
Minneapolis, MN 55402
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 9.4.
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Section 9.5 Provisions Not Mere:ed With Deed. None of the provisions of this Agreement
is intended to or shall be merged by reason of any deed transferring any interest in the Property and
any such deed shall not be deemed to affect or impair the provisions and covenants of this
Agreement.
Section 9.6. 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 HRA has caused this Agreement to be duly executed in its
name and behalf and its seal to be hereunto duly affixed and the Developer has caused this
Agreement to be duly executed as of the day and year fIrst above written.
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 Suzanne Sandahl, the Chairperson of the Housing and
Redevelopment Authority in and for the City of RichfIeld, Minnesota (HRA), a public body
corporate and politic under the laws of Minnesota, on behalf of the HRA.
Notary Public
STATE OF MINNESOTA
)
) SS
)
COUNTY OF
The foregoing instrument was acknowledged before me this day of
, 20 , by Steve Devich,_the Executive Director of the Housing and
, Redevelopment Authority in and for the City of RichfIeld, Minnesota (HRA), a public body
corporate and politic under the laws of Minnesota, on behalf of the HRA.
Notary Public
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GREATER METROPOLITAN HOUSING CORPORATION
By:
Its:
COUNTY OF
)
) ss
)
STATE OF MINNESOTA
The foregoing instrument was acknowledged before me this day of
, 20 , by , the
of The Greater Metropolitan Housing Corporation, a corporation under
the laws of Minnesota, on behalf of the corporation.
Notary Public
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EXHIBIT A
LIST OF CONSTRUCTION PLAN DOCUMENTS
· Contract for Development, fully executed
. Concept Plans
. Site Plan
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EXlllBIT B
FORM OF QUIT CLAIM DEED
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EXHIBIT C
FORM OF CERTIFICATE OF COMPLETION
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The undersigned hereby certifies that , has fully and
completely complied with its obligations under Article IV of 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. with_ respect to
the construction of the approved construction plans at , legally
described as and is released and forever discharged from its
obligations to construct under such above-referenced Article.
DATED:
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY RICHFIELD
By
Its Chairperson
By
Its Executive Director
STATE OF MINNESOTA )
)SS
COUNTY OF HENNEPIN )
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The foregoing instrument was acknowledged before me this _ day of
200___, by and
the Chairperson and 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 Pillsbury Center
Minneapolis, MN 55402
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AGENDA ITEM #
TIF STATUS
REpORT #
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STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
AUGUST 20, 2007
REpORT PREPARED By:
MYRT LINK
COMMUNITY DEVELOPMENT ACCOUNTANT
NAME, TITLE
REpORT PRESENTER:
BRUCE P ALMBORG,
COMMUNITY DEVELOPMENT DIRECTOR
DEPARTMENT DIRECTOR REVIEW:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of a presentation of the Richfield Housing and Redevelopment Authority Annual
Tax Increment District Status Update.
1.
RECOMMENDED ACTION:
By Motion: Accept the attached Richfield Housing and
Redevelopment Authority Annual Tax Increment District Status
Update.
I II.
BACKGROUND I
The Tax Increment Status Update Report (TIF Status Report) is presented to the
Richfield Housing and Redevelopment Authority (HRA) annually for review. This
year, the TIF Status Report shows that the HRA is able to meet all of its Pay-As-
You-Go Note and General Obligation Tax Increment Bond obligations.
The TIF Status Report presents summary text in the front part of the document and
summary cashflows in the back. Summary highlights for districts begin on the next
page of this report. Only districts that have new, updated information are reviewed
in the summary. For complete detail on all districts, please refer to the attached TIF
Status Report.
082007 TIFStatus Report
.
Sid Inman and Rebecca Kurtz from the HRA's financial consulting company will
present the annual report.
Interstate-Lyndale-Nicollet (lLN) District
. In 2004, the HRA approved a tax increment plan modification (deficit pooling) to
allow increment from the Interchange and Richfield Rediscovered Pre-1999
districts to be pooled to the ILN if funds are needed for debt service on the
bonds. The needs determination is made annually when all property tax data is
available and cashflows are recalculated.
. For taxes payable 2007, deficit pooling is not required.
Interchange District
. The Interchange District is positioned to assist thelLN District for deficit pooling.
For taxes payable 2007, deficit pooling is not required.
Pre-1999 Richfield Rediscoyered Districts
. The Richfield Rediscovered Pre-1999 Tax Increment Districts are positioned to
assist the ILN District for deficit pooling. For taxes payable 2007, deficit pooling
is not required.
Post-1999 Richfield Rediscovered Districts
. The Gramercy, Urban Village, and Lyndale Gateway/Interchange West Districts
contribute increment to pay debt service on the Richfield Rediscovered Bonds.
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Urban Village District
. There are two Note Payables for this district; one is a Tax Exempt Note, the
other a Taxable Note. Both have interest rate reset dates. The Tax Exempt
Note's reset was in 2006, and the rate went from 5.60% to 4.98%. The Taxable
Note's reset date is in 2011.
Interchange WestlLyndale Gateway District
. The Interchange West (Best Buy) portion of this district prioritizes the application
of increment in the following order: debt service for bridge bonds, administrative
costs, housing fund, and payment to developer.
City Bella District
. The project has a $450,000 loan from the development account to pay for land
previously owned by the HRA. The loan is being paid with 15% Housing Fund
increment.
Lyndale Gateway West District
. The district is receiving increment from the Casteel Place Townhomes project
located within the Lyndale Gateway portion of the Interchange West/Lyndale
Gateway District. Increment obligations to Casteel Place have since been paid
off.
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I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The annual TIF Status Report is provided to the HRA to summarize
tax increment district financial activity and comment on the status of
the HRA's ability to meet its tax increment obligations.
I B. CRITICAL ISSUES I
. The TIF Status Report indicates that the HRA is able to meet all of its
current and future tax increment obligations.
. A Modification of the Tax Increment Districts will be presented to the
HRA in the near future. The Modification isto clarify budgets and
ensure the TIF Districts are in compliance with guidelines established
by the Office of the State Auditor.
I C. FINANCIAL I
. See detailed TIF Status Report attached.
I D. LEGAL
. N/A
I IV. ALTERNATIVE RECOMMENDATION(S) I
. Reject the conclusions made in the TI F Status Report.
I V. ATTACHMENTS . I
. Annual Tax Increment District Status Update.
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING I
. Sid Inman, Ehlers & Associates, Inc.
. Rebecca Kurtz, Ehlers & Associates, Inc.
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Richfield Housing
and Redevelopment Authority
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Tax Increment District.
Status Update
August 20, 2007
A I EHLERS
V LEADERS IN PUBLIC FINANCE
Prepared by Ehlers & Associates
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Tax Increment Financing District Summary
Conclusion
The Richfield Housing and Redevelopment Authority (HRA) will be able to meet all of
its tax increment obligations.
Richfield Redevelopment Project Area
The Richfield Redevelopment Project area currently contains nine tax increment
financing districts:
. Interchange-Lyndale-Nicollet (ILN)
. Interchange
. Gramercy
. Urban Village
. Interchange WestlLyndale Gateway
. Richfield Rediscovered (pre-1999)
. Richfield Rediscovered (Post-1999)
. City Bella
. Lyndale Gateway West.
In 2005, the boundaries of the Richfield Redevelopment Project Area were expanded and
set to be the same as the City's boundary in order to expand housing program servic~
areas and provide a wider area of tax increment spending authority. The HRA has two
types of obligations associated with these districts.' The first type of obligation is the Pay
As You Go Revenue Note. All of these Notes pledge to the Note Holder a certain
percentage of the available tax increment from the specific district. Cess tax increment
results in lower Pay As You Go payments. Current projections show that the HRA will
be able to meet all of its Pay As You Go Revenue Note obligations.
The second type of obligation that the HRA has is Tax Increment Bonds. Currently,
there are bonds outstanding in the ILN, Richfield Rediscovered Post-1999, Interchange
West (Best Buy), and Lyndale Gateway West (Kensington Park) districts. Property tax
law changes in 2002 -- with the last phase-in in 2004 -- resulted in much lower increment
receipts than in the past. These changes prompted the HRA to start reserving cash to
cover bond debt service. Also, the law provided the ability for the HRA to share tax
increment (deficit pooling) from all tax increment districts to help pay General Obligation
Tax Increment Bond obligations. In 2004, the HRA undertook modifications to certain
tax increment district plans to address shortfalls in the ILN District increment. By using
deficit pooling, proj ections show that the HRA will be able to meet all of its General
Obligation Tax Increment Bond obligations.
Assumptions
All projections are based on the most conservative assumptions. Cash balances are as of
December 31, 2006.
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-Richfield HRA Tax Increment Financing District Update 2007
Page 2
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The calculations do not include any interest on invested cash or inflation on property
market values with a few exceptions:
The exceptions to the assumptions follow:
. Interchange West uses a 1.725% market value inflation
. Urban Village uses a 2% market value inflation
. Lyndale Gateway West uses a 1 % inflation rate
Although Lyndale Gateway (Richfield Senior Housing) used a 3% market value inflation
assumption at time of closing, a 0% market value inflation rate is being used in order to
be conservative.
....
-Richfield HRA Tax Increment Financing District Update 2007
Page 3
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Interstate-Lyndale-Nicollet (ILN) TIF District Update
The ILN District is a commercial redevelopment project comprised of the Shops at
Lyndale and the Meridian Crossings redevelopments.
First Year oflncrement: 1987
Estimated Decertification Date: 2012
Outstanding Obligations:
. $2,039,157 Pay-as-you-go Note for the Shops at Lyndale, Phase I
. $1,368,176 Pay-as-you-go Note for the Shops at Lyndale, Phase II
. $2,908,666 Pay-as-you-go Note for Meridian Crossings, Phase I
. $2,453,702 Pay-as-you-go Note for Meridian Crossings, Phase II
. General Obligation Tax Increment Bonds of 1996, which were refunded with the
$2,495,000 Taxable General Obligation Refunding Bonds, Series 2002B. (These
formerly were the pooled bonds of the LHN and ILN, and they are currently
known as the ILN Bonds)
. $1,630,000 General Obligation Tax Increment Bonds of2000, which utilizes the
Candlewood Hotel increment to assist the Lyndale Gateway West District
(Kensington Park).
The ILN District has a cash balance of $947,007:
The cash balance will be used to pay the ILN Bonds. The TIF Plan Modification
undertaken in 2004 to address deficit pooling will allow increment from the Interchange
and Richfield Rediscovered pre-1999 TIF District to be pooled to the ILN District, if
needed for debt service on the Bonds. The deficit pooling is reviewed annually. Deficit
pooling is not needed in 2007.
Conclusions:
The HRA will be able to 'meet all of its debt obligations.
......
-Richfield HRA Tax Increment Financing District Update 2007
Page 4
L)"S
.
Interchange TIF District Update
The Interchange District is a commercial redevelopment project comprised of the Dick's
Sporting Goods store. In 2004, Galyan's Trading Company became a wholly owned
subsidiary of Dick's Sporting Goods. Tax increment continues to be paid to Galyan's as
per the terms of the original Pay-as-you-go Note.
First Year of Increment: 1998
Estimated Decertification Date: 2023
Outstanding Obligations:
. $1,747,045 Pay-as-you-go Revenue Note for Galyan's
The Interchange District has a cash balance of $231,988.
The TIF Plan Modification undertaken in 2004 to address deficit pooling will allow
increment from the Interchange and Richfield Rediscovered pre": 1999 TIF District to be
pooled to the ILN District, if needed for debt service on the Bonds.
Conclusions:
. The HRA will be able to meet its Pay-as-you-go Revenue Note obligation.
.
.....
-RiChfield HRA Tax Increment Financing District Update 2007
Page 5
L,}~
Pre-1999 Richfield Rediscovered TIF District Update
The Pre-l 999 Richfield Rediscovered TIF Districts are redevelopment districts consisting
of owner occupied housing. In 1990, the City and HRA advanced funds in the amount of
$762,550 to the Richfield Rediscovered Program to establish a buy/sell program for the
construction of new, contemporary, single-family housing. All advances have been
satisfied.
First Year of Increment: Various dates from 1996 to 2001
Estimated Decertification Date: Various dates from 2018 to 2026
Outstanding Obligations:
. $1,045,000 Taxable General Obligation Tax Increment Refunding Bonds of2002C.
These Bonds were issued for the Post-l 999 Richfield Rediscovered TIF District.
Funds from the Pre-1999 Richfield Rediscovered, Gramercy, Urban Village, and
Lyndale Gateway/Interchange West are being pooled to assist with the debt service
payments.
The Pre-1999 Richfield Rediscovered District has a cash balance of $638,117.
The TIF Plan Modification undertaken in 2004 to address deficit pooling will allow,'
increment from the Interchange and Richfield Rediscovered pre-l 999 TIF District to be
pooled to the ILN District, if needed for debt service on the Bonds.
Conclusions:
The HRA will be able to meet its Bond obligation.
......
-Richfield HRA Tax Increment Financing District Update 2007
Page 6
f)/1
.
Post-1999 Richfield Rediscovered TIF District Update
The Post-1999 Richfield Rediscovered TIF Districts are redevelopment districts comprise
of owner occupied housing, and they are the second phase of the Richfield Rediscovered
Program. In November of 1999, the City sold General Obligation Tax Increment Bonds
to fund the Post-1999 Richfield Rediscovered Projects. These bonds were refunded with
the $1,045,000 Taxable General Obligation Tax Increment Refunding Bonds, Series
2002C, to achieve a lower interest rate, and therefore, use less tax increment.
First Year oflncrement: 2001
Estimated Decertification Date: 2026
Outstanding Obligations:
. $1,045,000 Taxable General Obligation Tax Increment Refunding Bonds of2002C.
The following revenue sources pay the debt on the Bonds:
.
. Annual tax increment from the Post-1999 Richfield Rediscovered Districts
. 15 percent of the annual tax increment from the Pre-1999 Richfield Rediscovered
Districts
. Annual pooled tax increment from the Pre-l 999 Richfield Rediscovered,
Gramercy, Urban Village, and Lyndale Gateway/Interchange West Districts
. Land sales proceeds
The Post-1999 Richfield Rediscovered District has a cash balance of $2,453.
Conclusions:
The HRA will be able to meet its Bond obligation.
No bond proceeds remain for Program use.
.
......
-Richfield HRA Tax Increment Financing District Update 2007
Page 7
~~
Urban Village TIF District Update
The Urban Village TIF District is a mixed-use redevelopment project that began
generating tax increment in 2000. Tax increment revenue is pledged to the project to
assist with property acquisition and excess site development expenses. Fifteen percent
(15%) of the annual tax increment is contributed to the Trust Fund.
First Year of Increment: 2000
Estimated Decertification Date: 2025
Outstanding Obligations:
. $2,500,000 Pay-as-you-go Tax Increment Revenue Note
. $2,388,414 Pay-as-you-go Tax Increment Revenue Note
. $1,045,000 Taxable General Obligation Tax Increment Refunding Bonds of
2002e. These Bonds were issued for the Post-1999 Richfield Rediscovered TIF
District. Funds from the Pre-1999 Richfield Rediscovered, Gramercy, Urban
Village, and Lyndale Gateway/Interchange West are being pooled to assist with
the debt service payments.
The TIF Bond has a reset date. The Tax Exempt Bond rate was reset in February 2006
from 5.6% to its current rate of 4.98%. The Taxable Note will be reset February 201-'1.
The Urban Village District has a cash balance of $54,369.
Conclusions:
The HRA will be able to meet both of its Pay-as-you-go Revenue Note obligations.
......
-Richfield HRA Tax Increment Financing District Update 2007
Page 8
.
.
.
s/~
Gramercy TIF District Update
The Gramercy TIF District is a redevelopment project that began generating tax
increment in 2002. The district includes the Gramercy Park Senior Housing Cooperative.
Tax increment revenue is pledged to the project to assist with property acquisition
expenses. In 2002, a portion of the Gramercy site area was eliminated from the TIF
District and incorporated into the City Bella project. Fifteen percent (15%) of the annual
tax increment is contributed to the Trust Fund.
First Year of Increment: 2002
Estimated Decertification Date: 2025
Outstanding Obligations:
. $1,977,000 Pay-as-you-go Tax Increment Revenue Note
. $1,045,000 Taxable General Obligation Tax Increment Refunding Bonds of
2002C. These Bonds were issued for the Post-1999 Richfield Rediscovered TIF
District. Funds from the Pre-1999 Richfield Rediscovered, Gramercy, Urban
Village, and Lyndale Gateway/Interchange West are being pooled to assist with
the debt service payments.
The Gramercy District has a cash balance of $ 25,958.
Conclusions:
The HRA will be able to meet of its Pay-as-you-go Revenue Note obligation.
.....
-Richfield HRA Tax Increment Financing District Update 2007
Page 9
?/ (0
Interchange West I Lyndale Gateway TIF District Update
The.Interchange West / Lyndale Gateway TIF District has two components. A portion of
the Lyndale Gateway District was eliminated in 2002 and incorporated into the new
Lyndale Gateway WestTIF District for the Cornerstone/Kensington Park Project.
Interchange West Component
The Interchange West component of the Interchange West/Lyndale Gateway District is
comprised of the Best Buy Corporate Headquarters proj ect. Tax increments are pledged
to the Best Buy project to assist with site assembly activities. A set dollar amount of
funds from the Interchange West portion ofthe District will be used to fund the Trust
Fund and administrative costs.
First Year of Increment: 2004
Estimated Decertification Date: 2025
OutstandIng Obligations:
. $22,190,195 Pay-as-you-go Tax Increment Revenue Note
. $8,350,000 Tax Exempt General Obligation Tax Increment Bonds of2001
. $1,045,000 Taxable General Obligation Tax Increment Refunding Bonds of
2002C. These Bonds were issued for the Post-1999 Richfield Rediscovered TIF
District. Funds from the Pre-1999 Richfield Rediscovered, Gramercy, Urban
Village, and Lyndale GatewaylInterchange West are being pooled to assist with
the debt service payments.
The Interchange West Component has a cash balance of $1,293,811.
Conclusions:
The HRA will be able to meet both of its obligations.
Lyndale Gateway Component
The Lyndale Gateway component is comprised of the Richfield Senior Housing project
(Main Street Village) and the Minnstar Builders, Inc. project (Casteel Place
Townhouses). Tax increment revenue is pledged to the project to assist with site
assembly expenses.
In 2002, the HRA loaned Richfield Senior Housing, Inc. $338,251.76 to assist with an
unexpected condemnation award in acquiring a portion of the redevelopment property.
The loan was paid off by the developer in December, 2004.
......
-Richfield HRA Tax Increment Financing District Update 2007
Page 10
~/II
; i}
. '"
.
For the Minnstar Builders project, Casteel Place.Townhomes, the Contract for Private
Redevelopment included a "look back" provision that required a review of the
developer's costs. To the extent that certain costs would go up or down under the
estimate, the associated Pay-as-you-go Revenue Note would be reduced by a like amount.
The "look back" provision analysis was completed in 2002, which called for a reduction
in the Pay-as-you-go Revenue Note from $100,000 to $19,985.23. The cost savings of
this tax increment was then used as additional gap funding for the Cornerstone/
Kensington Park redevelopment project in the Lyndale Gateway West District.
The last increment payment to Minnstar Builders was February 1,2005.
First Year of Increment: 2000
Estimated Decertification Date:
Outstanding Obligations:
. $3,300,000 Pay-as-you-go Tax Increment Revenue Note to Richfield Senior
Housing
The Lyndale Gateway Component has a cash balance of $459,757.
. Conclusions:
The HRA will be able to meet its Pay-as-you-go Revenue Note obligation.
.
......
-Richfield HRA Tax Increment Financing District Update 2007
Page 11
(,{\~
City Bella TIFDistrict Update
The City Bella project is a redevelopment district consisting of a housing project with a
retail component. Tax increment revenue is pledged to the project to assist with property
acquisition and site improvement expenses. Beginning in 2006, 15% of the annual tax
increment is contributed to the Trust Fund. In 2002, a portion of the Gramercy TIF
District was eliminated and incorporated into the City Bella Project.
The City Bella Project has a $450,000 loan from the Development Account to pay for
land owned by the HRA. This loan will be paid by using the 15% Housing Fund.
First Year of Increment: 2006
Estimated Decertification Date: 2030
Outstanding Obligations:
. $8,473,470 Pay-as-you-go Tax Increment Revenue Note
The City Bella District has a cash balance of $158,135.
Conclusions:
The HRA will be able to meet both of its Pay-as-you-go Revenue Note obligations.
.....
-Richfield HRA Tax Increment Financing District Update 2007
Page 12
.
.
.
Lyndale Gateway West TIF District Update
~/r:?
The Lyndale Gateway West TIF District is comprised of the Cornerstone (Kensington
Park) mixed-use redevelopment project. Tax increment revenue is pledged to the project
to assist with site assembly expenses.
A portion of Lyndale Gateway District was eliminated in 2002 and incorporated into the
Lyndale Gateway West TIF District for the Cornerstone Project.
First Year of Increment: 2006
Estimated Decertification Date: 2029
Outstanding Obligations:
. $3,470,000 Taxable General Obligation Tax Increment Bonds of 2003
In addition, the District has a $1,100,000 loan from the ILN District: $600,000 ofthe loan
will be paid back from tax increment and the developer will pay the balance of $500,000.
The interest on the total $1,100,000 will be paid back from tax increment.
Tax increment from the Minnstar Builders townhouse project in the Lyndale Gateway
District is being used to pay obligations related to the Cornerstone project.
The Lyndale Gateway West District has a cash balance of $78,258.
Conclusions:
The HRA will be able to meet both of its Bond obligation.
....
. -Richfield HRA Tax Increment Financing District Update 2007
Page 13
Cedar Avenue TIF District Update
The Cedar Avenue TIF District is a redevelopment district comprised of the
commercial/retail redevelopment near the SuperTarget project. This District was
established in 2006 using Special Legislation from the Laws of Minnesota 2005, Chapter
152, Article 2, Section 25.
The District wi11 be added to the Status Report after the first year of increment, which is
scheduled for 2008.
......
-Richfield HRA Tax Increment Financing District Update 2007
Page 14
(, I \~
.
.
.
Cedar Point Tax Abatement Update
The Cedar Point Tax Abat.ement was established to assist with the redevelopment efforts
related to the Ryan/SuperTarget project.
The Abatement project will be added to the Status Report after the first year of abatement, which
is scheduled for 2008.
......
-Richfield HRA Tax Increment Financing District Update 2007
Page 15
~/I~
Decertified Tax Increment Financing Districts
The HRA has decertified three TIF Districts:
. Lyndale-Hub-Nicollet (LHN) District (a redevelopment district) was closed as
of December 31, 2002.
. Cedar Avenue Business Area (CABA) District (an economic development
district) ended in 1996. All of the accounting transactions to close the District
were completed by December 31,2000.
. Penn Avenue and Sixty-Sixth Street (P ASSS) District (a redevelopment
district) was established in 1989 and terminated in 1996 due to a lack of feasible
redevelopment opportunities.
......
-Richfield HRA Tax Increment Financing District Update 2007
Page 16
SJ \ \iJ
.
Housing Fund
The Housing Fund is a revenue source comprised oftax increment from the Gramercy,
Urban Village, Interchange WestlLyndale Gateway, and City Bella TIF Districts. The
purpose of the Housing Fund is to fund a variety of housing needs for the community,
including but not limited to, new construction of single-family homes and town homes;
single-family home renovation and rehabilitation; and apartment rehabilitation.
Currently, the Housing Fund is used to fund the New Home Program ,Transformation
Housing Program (a deferred loan program), Kids at Home Program, and pay debt
service on the Richfield Rediscovered Post-1999 Bond.
.
.
......
-Richfield HRA Tax Increment Financing District Update 2007
Page 17
5/(}
.
.
8/1312007
Prepared by Ehlers
cashflows 8-13-o7.xls
20113
'f ,fA,
CITY OF RICHFIELD. 2006
STATUS REPORT
Interchan!le . Galvans (Countv Project #1271)
PAYMENT Galyans Pooling Net Tax
DATE Gross Tax Administration Tax Increment
MT YEAR Increment 10.00% PAYG Increment End Of Year
BALANCE 231,988
2/1 231,988
8/1 231,988
2/1 2007 118,721 (11,872) (106,849) 0 231,988
8/1 2007 118,721 (11,872) (106,849) 0 231,988
2/1 2008 118,721 (11,872) (106,849) 0 231,988
8/1 2008 118,721 (11,872) (106,849) 0 231,988
2/1 2009 118,721 (11,872) (106,849) 0 231,988
8/1 2009 118,721 (11,872) (106,849) 0 231,988
2/1 2010 118,721 (11,872) (106,849) 0 231,988
8/1 2010 118,721 (11,872) (106,849) (231,988) 0
2/1 2011 118,721 (11,872) (106,849) 0 0
8/1 2011 118,721 (11,872) (106,849) 0 0
2/1 2012 118,721 (11,872) (106,849) 0 0
8/1 2012 118,721 (11,872) (106,849) 0 0
2/1 2013 118,721 (11,872) (106,849) 0 0
8/1 2013 118,721 (11,872) (106,849) 0 0
2/1 2014 118,721 (11,872) (106,849) 0 0
8/1 2014 118,721 (11,872) (106,849) 0 0
2/1 2015 118,721 (11,872) (106,849) 0 0
8/1 2015 118,721 (11,872) (106,849) 0 0
2/1 2016 118,721 (11,872) (106,849) 0 0
8/1 2016 118,721 (11,872) (106,849) 0 0
2/1 2017 118,721 (11,872) (106,849) 0 0
8/1 2017 118,721 (11,872) (106,849) 0 0
2/1 2018 118,721 (11,872) (106,849) 0 0
8/1 2018 118,721 (11,872) (106,849) 0 0
2/1 2019 118,721 (11,872) (106,849) 0 0
2,968,025 (296,803) (2,671,223) (231,988) 0
8/1312007
ASSUMPTIONS
No Interest Income
No Market Value Inflation
Prepared by Ehlers
cashflows 8-13-o7.xls
S')U
30113 CITY OF RICHFIELD. 2006
STATUS REPORT
RICHFIELD REDISCOVERED - Pre -1999
YMENT Post 1999 Pooling Net Tax
ATE Gross Tax Administration RR Bond Tax Increment
MT YEAR Increment 10.00% 15.00% Increment End Of Year
BALANCE 638,117
638,117
638,117
2/1 2007 59,468 (5,947) (8,920) 0 682,718
8/1 2007 59,468 (5,947) (8,920) 0 727,319
2/1 2008 59,468 (5,947) (8,920) 0 771,920
8/1 2008 59,468 (5,947) (8,920) 0 816,521
2/1 2009 59,468 (5,947) (8,920) 0 861,122
8i1 2009 59,468 (5,947) (8,920) 0 905,723
2/1 2010 59,468 (5,947) (8,920) 0 950,324
8/1 2010 59,468 (5,947) (8,920) 0 994,925
2/1 2011 59,468 (5,947) (8,920) 0 1,039,526
8/1 2011 59,468 (5,947) (8,920) 0 1,084,127
2/1 2012 59,468 (5,947) (8,920) 0 1,128,728
8/1 2012 59,468 (5,947) (8,920) (167,000) 1,006,329
2/1 2013 59,468 (5,947) (8,920) 0 1,050,930
8/1 2013 59,468 (5,947) (8,920) 0 1,095,531
2/1 2014 59,468 (5,947) (8,920) 0 1,140,132
8/1 2014 59,468 (5,947) (8,920) 0 1,184,733
2/1 2015 59,468 (5,947) (8,920) 0 1,229,334
8/1 2015 59,468 (5,947) (8,920) 0 1,273,935
2/1 2016 59,468 (5,947) (8,920) 0 1,318,536
8/1 2016 59,468 (5,947) (8,920) 0 1,363,137
2/1 2017 59,468 (5,947) (8,920) 0 1 ,407,738
8/1 2017 59,468 (5,947) (8,920) 0 1,452,339
2/1 2018 59,468 (5,947) (8,920) 0 1,496,940
8/1 2018 59,468 (5,947) (8,920) 0 1,541,541
2/1 2019 59,468 (5,947) (8,920) 0 1,586,142
8/1 2019 59,468 (5,947) (8,920) 0 1,630,743
2/1 2020 59,468 (5,947) (8,920) 0 1,675,344
8/1 2020 59,468 (5,947) (8,920) 0 1,719,945
2/1 2021 59,468 (5,947) (8,920) 0 1,764,546
8/1 2021 59,468 (5,947) (8,920) 0 1,809,147
2/1 2022 59,468 (5,947) (8,920) 0 1,853,748
8/1 2022 59,468 (5,947) (8,920) 0 1,898,349
2/1 2023 59,468 (5,947) (8,920) 0 1,942,950
8/1 2023 59,468 (5,947) (8,920) 0 1,987,551
2/1 2024 59,468 (5,947) (8,920) 0 2,032,152
8/1 2024 59,468 (5,947 8,920) 0 2,076,753
2,140,848 214,085) 321,127) (167,000 2,076,753
ASSUMPTIONS
No Inleresllncome
No Markel Value Inflation
.
8/13/2007
Prepared by Ehlers
cashflows 8-13.cl7.xls
~)}'
40113
CITY OF RICHFIELD - 2006
STATUS REPORT
RICHFIELD REDISCOVERED . Post-1999
PAYMENT Net Tax
DATE Gross Tax Administration From Pre 1999 Debt Land Housing Increment
MT YEAR Increment 10.00% RR Payment Sales Fund End Of Year
BALANCE 0
0
0
2/1 2007 18,490 (1,849) 8,920 (70,108) 0 44,546 0
8/1 2007 18,490 (1,849) 8,920 (19,233) 0 0 6,329
2/1 2008 18,490 (1,849) 8,920 (74,233) 0 42,343 (6,329)
8/1 2008 18,490 (1,849) 8,920 (18,270) 0 0 7,291
2/1 2009 18,490 (1,849) 8,920 (78,270) 0 45,418 (7,291 )
8/1 2009 18,490 (1,849) 8,920 (17,070) 0 0 8,491
2/1 2010 18,490 (1,849) 8,920 (77,070) 0 43,018 (8,491)
8/1 2010 18,490 (1,849) 8,920 (15,810) 0 0 9,751
2/1 2011 18,490 (1,849) 8,920 (80,810) 0 45,498 (9,751)
8/1 2011 18,490 (1,849) 8,920 (14,348) 0 0 11,214
2/1 2012 18,490 (1,849) 8,920 (84,348) 0 47,573 (11,214)
8/1 2012 18,490 (1,849) 8,920 (12,685) 0 0 12,876
2/1 2013 18,490 (1,849) 8,920 (87,685) 0 49,248 (12,876)
8/1 2013 18,490 (1,849) 8,920 (10,810) 0 0 14,751
2/1 2014 18,490 (1,849) 8,920 (85,810) 0 30,746 (29,502)
8/1 2014 18,490 (1,849) 8,920 (8,935) 0 42,379 59,005
2/1 2015 18,490 (1,849) 8,920 (88,935) 0 0 (63,374)
8/1 2015 18,490 (1,849) 8,920 (6,935) 0 108,121 126,748
2/1 2016 18,490 (1,849) 8,920 (91,935) 0 0 (66,374)
8/1 2016 18,490 (1,849) 8,920 (4,810) 0 111,996 132,748
2/1 2017 18,490 (1,849) 8,920 (94,810) 0 0 (69,249)
8/1 2017 18,490 (1,849) 8,920 (2,470) 0 115,406 138,498
2/1 2018 18,490 (1,849) 8,920 (97,470) 0 0 (71,909)
8/1 2018 18,490 (1,849) 8,920 0 0 118,256 143,818
2/1 2019 18,490 (1,849) 8,920 0 0 0 25,561
8/1 2019 18,490 (1,849) 8,920 0 0 0 25,561
2/1 2020 18,490 (1,849) 8,920 0 0 0 25,561
8/1 2020 18,490 (1,849) 8,920 0 0 0 25,561
2/1 2021 18,490 (1,849) 8,920 0 0 0 25,561
8/1 2021 18,490 (1,849) 8,920 0 0 0 " 25,561
2/1 2022 18,490 (1,849) 8,920 0 0 0 25,561
8/1 2022 18,490 (1,849) 8,920 0 0 0 25,561
2/1 2023 18,490 (1,849) 8,920 0 0 0 25,561
8/1 2023 18,490 (1,849) 8,920 0 0 0 25,561
2/1 2024 18,490 (1,849) 8,920 0 0 0 ' " 25,561
647,150 (64,715) (1,142,858) 0 844,548 596,332
ASSUMPTIONS
No Interest Income
No Market Value Inflation
8/1312007
Prepared by Ehlers
cashflows a-13-07.xls
C,)!
50113 CITY OF RICHFIELD - 2006
STATUS REPORT
URBAN VILLAGE TAX INCREMENT - Coun Pro.ect # 1280
YMENT Housing Local Payment Payment Net Tax
ATE Gross Tax Administration Fund Match A B Increment
MT YEAR Increment 10.00% 15.00% 5.00% PAYG PAYG End Of Year
BALANCE 0
0
0
2/1 2007 215,745 (21,575) (32,362) 10,787 (91,480) (81,116) 0
8/1 2007 215,745 (21,575) (32,362) 10,787 (90,300) (82,296) 0
2/1 2008 215,745 (21,575) (32,362) 10,787 (89,121) (83,475) 0
8/1 2008 215,745 (21,575) (32,362) 10,787 (87,942) (84,654) 0
2/1 2009 215,745 (21,575) (32,362) 10,787 (88,763) (83,833) 0
8/1 2009 215,745 (21,575) (32,362) 10,787 (87,534) (85,062) 0
2/1 2010 215,745 (21,575) (32,362) 10,787 (86,305) (86,291 ) 0
8/1 2010 215,745 (21,575) (32,362) 10,787 (85,076) (87,520) 0
2/1 2011 215,745 (21,575) (32,362) 10,787 (83,847) (88,749) 0
8/1 2011 215,745 (21,575) (32,362) 10,787 (82,618) (89,978) 0
2/1 2012 215,745 (21,575) (32,362) 10,787 (81,389) (91,207) 0
8/1 2012 215,745 (21,575) (32,362) 10,787 (82,160) (90,436) 0
2/1 2013 215,745 (21,575) (32,362) 10,787 (80,881) (91,715) 0
8/1 2013 215,745 (21,575) (32,362) 10,787 (79,603) (92,993) 0
2/1 2014 215,745 (21,575) (32,362) 10,787 (78,324) (94,272) 0
8/1 2014 215,745 (21,575) (32,362) 10,787 (77,045) (95,551) 0
2/1 2015 215,745 (21,575) (32,362) 10,787 (75,766) (96,830) 0
8/1 2015 215,745 (21,575) (32,362) 10,787 (74,488) (98,108) 0
2/1 2016 215,745 (21,575) (32,362) 10,787 (75,209) (97,387) 0
8/1 2016 215,745 (21,575) (32,362) 10,787 (73,880) (98,716) 0
2/1 2017 215,745 (21,575) (32,362) 10,787 (72,552) (100,044) 0
8/1 2017 215,745 (21,575) (32,362) 10,787 (71,223) (101,373) 0
2/1 2018 215,745 (21,575) (32,362) 10,787 (69,895) (102,701) 0
8/1 2018 215,745 (21,575) (32,362) 10,787 (68,566) (104,030) 0
2/1 2019 215,745 (21,575) (32,362) 10,787 (67,237) (105,359) 0
8/1 2019 215,745 (21,575) (32,362) 10,787 (67,909) (104,687) 0
2/1 2020 215,745 (21,575) (32,362) 10,787 (66,531) (106,065) 0
8/1 2020 215,745 (21,575) (32,362) 10,787 (65,152) (107,444) 0
2/1 2021 215,745 (21,575) (32,362) 10,787 (63,774) (108,822) 0
/1 2021 215,745 (21,575) (32,362) 10)87 (62,395) (110,201) 0
2/1 2022 215,745 (21,575) (32,362) 10,787 (61,017) (111.,579) 0
8/1 2022 215,745 (21,575) (32,362) 10,787 (59,639) (112,957) 0
2/1 2023 215,745 (21,575) (32,362) 10,787 (60,260) (112,336) - 0
8/1 2023 215,745 (21,575) (32,362) 10,787 (58,832) (113,764) 0
2/1 2024 215,745 (21,575) (32,362) 10,787 0 (172,596) 0
8/1 2024 215,745 (21,575) (32,362) 10,787 0 (172,596) 0
2/1 2025 215,745 (21,575) (32,362) 10,787 0 (172,596) 0
8/1 2025 215,745 (21,575) (32,362) 10,787 0 (172,596) 0
2/1 2026 215,745 (21,575) (32,362) 10,787 0 (172,596) 0
8/1 2026 215,745 21,575 (32,362 10,787 0 172,596 0
8,629,800 (862,980) (1,294,470) 431,490 (2,566,714 4,337,126) 0
ASSUMPTIONS
No Interest Income
No Mar1<et Value Inflation
.
8/1312007
Prepared by Ehlers
cashflows 8-13-07.xlli
60113
b)')
CITY OF RICHFIELD - 2006
STATUS REPORT
GRAMERCY PARK TAX INCREMENT - County Proiect# 1275
PAYMENT Housing Payment Net Tax
DATE Gross Tax Administration Fund A Increment
MT YEAR Increment 10.00% 15.00% PAYG End Of Year
BALANCE 0
0
0
2/1 2007 153,405 (15,341) (23,011) (115,054) 0
8/1 2007 153,405 (15,341) (23,011) (115,054) 0
2/1 2008 153,405 (15,341) (23,011) (115,054) 0
8/1 2008 153,405 (15,341) (23,011) (115,054) 0
2/1 2009 153,405 (15,341) (23,011) (115,054) 0
8/1 2009 153,405 (15,341) (23,011) (115,054) 0
2/1 2010 153,405 (15,341) (23,011) (115,054) 0
8/1 2010 153,405 (15,341) (23,011) (115,054) 0
2/1 2011 153,405 (15,341) (23,011) (115,054) 0
8/1 2011 153,405 (15,341) (23,011) (115,054) 0
2/1 2012 153,405 (15,341) (23,011) (115,054) 0
8/1 2012 153,405 (15,341) (23,011) (115,054) 0
2/1 2013 153,405 (15,341) (23,011) (115,054) 0
8/1 2013 153,405 (15,341) (23,011) (115,054) 0
2/1 2014 153,405 (15,341) (23,011) (115,054) 0
8/1 2014 153,405 (15,341) (23,011 ) (115,054) 0
2/1 2015 153,405 (15,341) (23,011) (115,054) 0
8/1 2015 153,405 (15,341) (23,011) (115,054) 0
2/1 2016 153,405 (15,341) (23,011) (115,054) 0
8/1 2016 153,405 (15,341) (23,011) (115,054) 0
2/1 2017 153,405 (15,341) (23,011) (115,054) 0
8/1 2017 153,405 (15,341) (23,011) (115,054) 0
2/1 2018 153,405 (15,341) (23,011) (115,054) 0
8/1 2018 153,405 (15,341) (23,011) (105,847) 9,207
2/1 2019 153,405 (15,341) (23,011) 0 124,261
8/1 2019 153,405 (15,341) (23,011) 0 239,314
2/1 2020 153,405 (15,341) (23,011) 0 354,368
8/1 2020 153,405 (15,341) (23,011) 0 115,054
2/1 2021 153,405 (15,341) (23,011) 0 .. 115,054
8/1 2021 153,405 (15,341) (23,011) 0 115,054
2/1 2022 153,405 (15,341) (23,011) 0 115,054
8/1 2022 153,405 (15,341) (23,011) 0 115,054
2/1 2023 153,405 (15,341) (23,011) 0 115,054
8/1 2023 153,405 (15,341) (23,011) 0 115,054
2/1 2024 153,405 (15,341) (23,011) 0 115,054
8/1 2024 153,405 (15,341) (23,011) 0 115,054
2/1 2025 153,405 (15,341) (23,011) 0 115,054
8/1 2025 153,405 (15,341) (23,011) 0 115,054
2/1 2026 153,405 (15,341) (23,011) 0 115,054
8/1 2026 153,405 (15,341) (23,011) 0 115,054
6,136,200 (613,620) (920,430) (2,752,083) 1,495,699
8/1312007
ASSUMPTIONS
No Interest Income
No Market Value Inflation
Prepared by Ehlers
cashflows 8-13-07.xls
.
8/1312007
Prepared by Ehlers
cashflows 8-13-G7.xls
80113
I
S/)'>
CITY OF RICHFIELD - 2006
STATUS REPORT
L YNDALE GA TEWA Y (TCCH) TAX INCREMENT - County Project # 1281
PAYMENT Payment NetTax
DATE Gross Tax Administration A Increment
MT YEAR Increment 10.00% PAYG End Of Year
BALANCE 0
0
0
2/1 2007 102,926 (10,293) (92,633) 0
8/1 2007 102,926 (10,293) (92,633) 0
2/1 2008 102,926 (10,293) (92,633) 0
8/1 2008 102,926 (10,293) (92,633) 0
2/1 2009 102,926 (10,293) (92,633) 0
8/1 2009 102,926 (10,293) (92,633) 0
2/1 2010 102,926 (10,293) (92,633) 0
8/1 2010 102,926 (10,293) (92,633) 0
2/1 2011 102,926 (10,293) (92,633) 0
8/1 2011 102,926 (10,293) (92,633) 0
2/1 2012 102,926 (10,293) (92,633) 0
8/1 2012 102,926 (10,293) (fl2,633) 0
2/1 2013 102,926 (10,293) (92,633) 0
8/1 2013 102,926 (10,293) (92,633) 0
2/1 2014 102,926 (10,293) (92,633) 0
8/1 2014 102,926 (10,293) (92,633) 0
2/1 2015 102,926 (10,293) (92,633) 0
8/1 2015 102,926 (10,293) (92,633) 0
2/1 2016 102,926 (10,293) (92,633) 0
8/1 2016 102,926 (10,293) (92,633) 0
2/1 2017 102,926 (10,293) (92,633) 0
8/1 2017 102,926 (10,293) (92,633) 0
2/1 2018 102,926 (10,293) (92,633) 0
8/1 2018 102,926 (10,293) (92,633) 0
2/1 2019 102,926 (10,293) (92,633) 0
8/1 2019 102,926 (10,293) (92,633) 0
2/1 2020 102,926 (10,293) (92,633) 0
8/1 2020 102,926 (10,293) (92,633) 0
2/1 2021 102,926 (10,293) (92,633) 1. 0
8/1 2021 102,926 (10,293) (92,633) 0
2/1 2022 102,926 (10,293) (92,633) 0
8/1 2022 102,926 (10,293) (92,633) 0
2/1 2023 102,926 (10,293) (92,633) 0
8/1 2023 102,926 (10,293) (92,633) 0
2/1 2024 102,926 (10,293) (92,633) " 0
8/1 2024 102,926 (10,293) (92,633) 0
2/1 2025 102,926 (10,293) (92,633) 0
8/1 2025 102,926 (10,293) (92,633) 0
2/1 2026 102,926 (10,293) (92,633) 0
8/1 2026 102,926 (10,293) (92,633) 0
4,117,040 (411,704) (3,705,336) 0
ASSUMPTIONS
TIF NOT USED FOR PAYG NOTE IS PLEDGED TO THE PROJECT ON WEST LYNDALE
No Interest Income
No Market Value Inflation
8/1312007
Prepared by Ehlers
cashflows 8-13-07.xls
C, I dIp
90113 CITY OF RICHFIELD. 2006
STATUS REPORT
CITY BELLA TAX INCREMENT -County Pro"ect#1285
A YMENT Housing Payment Net Tax
DATE Gross Tax Administration Fund A Interfund Increment
MT YEAR Increment 10.00% 15.00% PAYG Loan Pa men! End Of Year
BALANCE 0
0
0
2/1 2007 220,814 (22,081) 0 165,411 33,242 397,385
8/1 2007 220,814 (22,081) 0 165,411 33,242 794,771
2/1 2008 220,814 (22,081) 0 165,411 33,242 1,192,156
8/1 2008 220,814 (22,081) 0 165,411 33,242 1,589,541
2/1 2009 220,814 (22,081) 0 165,411 33,242 1,986,927
8/1 2009 220,814 (22,081) 0 165,411 33,242 2,384,312
2/1 2010 220,814 (22,081) 0 165,411 33,242 2,781,698
8/1 2010 220,814 (22,081) 0 165,411 33,242 3,179,083
2/1 2011 220,814 (22,081) 0 165,411 33,242 3,576,468
8/1 2011 220,814 (22,081) 0 165,411 33,242 3,973,854
2/1 2012 220,814 (22,081) 0 165,411 33,242 4,371,239
8/1 2012 220,814 (22,081) 0 165,411 33,242 4,768,624
2/1 2013 220,814 (22,081) 0 165,411 33,242 5,166,010
8/1 2013 220,814 (22,081) 0 165,411 33,242 5,563,395
2/1 2014 220,814 (22,081) 0 165,411 33,242 5,960,781
8/1 2014 220,814 (22,081) 0 165,411 33,242 6,358,166
2/1 2015 220,814 (22,081) 0 1~5,411 33,242 6,755,551
8/1 2015 220,814 (22,081) 0 165,411 33,242 7,152,937
2/1 2016 220,814 (22,081) 0 165,411 17,623 7,534,703
8/1 2016 220,814 (22,081) (33,122) 165,411 0 7,865,725
2/1 2017 220,814 (22,081) (33,122) 165,411 0 8,196,746
8/1 2017 220,814 (22,081) (33,122) 165,411 0 8,527,768
2/1 2018 220,814 (22,081) (33,122) 165,411 0 8,858,789
8/1 2018 220,814 (22,081) (33,122) 165,411 0 9,189,811
2/1 2019 220,814 (22,081) (33,122) 165,411 0 9,520,832
8/1 2019 220,814 (22,081) (33,122) 165,411 0 9,851,854
2/1 2020 220,814 (22,081) (33,122) 165,411 0 10,182,875
8/1 2020 220,814 (22,081) (33,122) 165,411 0 10,513,897
2/1 2021 220,814 (22,081) (33,122) 165,411 0 10,844,918
8/1 2021 220,814 (22,081) (33,122) 165,411 0 11,175,940
2/1 2022 220,814 (22,081) (33,122) 165,411 0 11,506,961
8/1 2022 220,814 (22,081) (33,122) 165,411 0 11,837,983
2/1 2023 220,814 (22,081) (33,122) 165,411 0 12,169,004
8/1 2023 220,814 (22,081) (33,122) 165,411 0 12,500,026
2/1 2024 220,814 (22,081) (33,122) 165,411 0 12,831,047
8/1 2024 220,814 (22,081) (33,122) 165,411 0 13,162,069
2/1 2025 220,814 (22,081) (33,122) 165,411 0 13,493,090
8/1 2025 220,814 (22,081) (33,122) 165,411 0 13,824,112
2/1 2026 220,814 (22,081) (33,122) 165,411 0 14,155,133
8/1 2026 220,814 (22,081) (33,122) 165,411 0 14,486,155
2/1 2027 220,814 (22,081) (33,122) 165,411 0 14,817,176
8/1 2027 220,814 (22,081) (33,122) 165,411 0 15,148,198
2/1 2028 220,814 (22,081 ) (33,122) 165,411 0 15,479,219
8/1 2028 220,814 (22,081) (33,122) 165,411 0 15,810,241
2/1 2029 220,814 (22,081) (33,122) 165,411 0 16,141,262
8/1 2029 220,814 (22,081) (33,122) 165,411 0 16,472,284
2/1 2030 220,814 (22,081) (33,122) 165,411 0 16,803,305
8/1 2030 220,814 22,081 (33,122) 165,411 0 17,134,327
10,599,072 1,059,907) (960,541 7,939,728 615,975 17,134,327
ASSUMPTIONS
No Interest Income
No Market Value Inflation
.
8/13/2007
Prepared by Ehlers
cashfloWs 8-13..o7.xls
100113
n
C:>/1
CITY OF RICHFIELD - 2006
STATUS REPORT
BEST BUY TAX INCREMENT - County Project # 1282
PAYMENT Admin Housing Tax Exempt PAY.G.
DATE Gross Tax Fund Fund G. O. Bond Note
MT YEAR 1 ncrement FIXED FIXED Payment A
BALANCE
2/1 2007 895,588 (34,068) (238,479) (179,022) (444,019)
8/1 2007 895,588 (34,068) (238,479) (474,022) (149,019)
2/1 2008 911,037 (34,777) (243,443) (173,122) (459,694)
8/1 2008 911,037 (34,777) (243,443) (483,122) (149,694)
2/1 2009 926,752 (35,499) (248,493) (166,767) (475,993)
8/1 2009 926,752 (35,499) (248,493) (486,767) (155,993)
2/1 2010 942,739 (36,233) (253,631) (160,047) (492,828)
8/1 2010 942,739 (36,233) (253,631) (495,047) (157,828)
2/1 2011 959,001 (36,979) (258,857) (152,844) (510,321)
8/1 2011 959,001 (36,979) (258,857) (507,844) (155,321)
2/1 2012 975,544 (37,739) (264,173) (145,034) (528,598) .
8/1 2012 975,544 (37,739) (264,173) (515,034) (158,598)
2/1 2013 992,372 (38,511) (269,581) (136,709) (547,571)
8/1 2013 992,372 (38,511) (269,581) (521,709) (162,571)
2/1 2014 1,009,490 (39,297) (275,082) (127,806) (567,305)
8/1 2014 1,009,490 (39,297) (275,082) (532,806) (162,305)
2/1 2015 1,026,904 (40,097) (280,678) (118,188) (587,942)
8/1 2015 1,026,904 (40,097) (280,678) (543,188) (162,942)
2/1 2016 1,044,618 (40,910) (286,370) (108,094) (609,245)
8/1 2016 1,044,618 (40,910) (286,370) (558,094) (159,245)
2/1 2017 1,062,638 (41,737) (292,161) (97,125) (631,615)
8/1 2017 1,062,638 (41,737) (292,161) (567,125) (161,615)
2/1 2018 1,080,968 (42,579) (298,051) (85,375) (654,963)
8/1 2018 1,080,968 (42,579) (298,051) (580,375) (159,963)
2/1 2019 1,099,615 (43,435) (304,044) (73,000) (679,137)
8/1 2019 1,099,615 (43,435) (304,044) (598,000) (154,137)
2/1 2020 1,118,583 (44,305) (310,139) (59,875) (704,264)
8/1 2020 1,118,583 (44,305) (310,139) (609,875) (154,264) ..
2/1 2021 1,137,879 (45,191) (316,340) (46,125) (730,223)
8/1 2021 1,137,879 (45,191) (316,340) (626,125) (150,223)
2/1 2022 1,157,507 (46,092) (322,647) (31,625) (757,143)
8/1 2022 1,157,507 (46,092) (322,647) (646,625) (142,143)
2/1 2023 1,177,474 (47,009) (329,064) (16,250) (785,151)
8/1 2023 1,177,474 (47,009) (329,064) (666,250) (135,151)
2/1 2024 1,197,786 (47,941) (335,591) 0 (814,253)
8/1 2024 1,197,786 (47,941) (335,591) 0 (814,253)
2/1 2025 . 1,218,448 (48,890) (342,231) 0 (827,327)
8/1 2025 1,218,448 (48,890) (342,231 ) 0 (827,327)
39,869,886 (1,562,579) (10,938,106) (11,289,016) (16,080,186)
8/1312007
ASSUMPTIONS
No Interest Income
Market Value Inflation
1.7250%
Prepared by Ehlers
cashflows 8-13-07.xls
t;;d-~
110113 CITY OF RICHFIELD. 2006
STATUS REPORT
Lyndale Gateway West Cornerstone (Kensin ton Park) 1286
YMENT Comerstone Admin Housing Taxable Ron Clark Interfund NetTax
DATE Gross Tax Fund Fund G. O. Bond Gross Tax Loan A Increment
MT YEAR Increment 10.00% 0.00% Pa ment Increment 5.00% End otYear
BALANCE 0
0
78,300
2/1 2007 140,406 (14,041) 0 (85,809) 5,785 0.00 46,341
8/1 2007 140,406 (14,041) 0 (205,809) 5,785 0.00 (73,659)
2/1 2008 141,810 (14,181) 0 (83,184) 5,785 0.00 50,230
8/1 2008 141,810 (14,181) 0 (208,184) 5,785 0.00 (74,770)
2/1 2009 143,228 (14,323) 0 (80,450) 5,785 0.00 54,240
8/1 2009 143,228 (14,323) 0 (210,450) 5,785 0.00 (75,760)
2/1 2010 144,660 (14,466) 0 (77,606) 5,785 0.00 58,373
8/1 2010 144,660 (14,466) 0 (212,606) 5,785 0.00 (76,627)
2/1 2011 146,107 (14,611) 0 (74,569) 5,785 0.00 62,713
8/1 2011 146,107 (14,611) 0 (214,569) 5,785 0.00 (77 ,287)
2/1 2012 147,568 (14,757) 0 (71,279) 5,785 0.00 67,318
8/1 2012 147,568 (14,757) 0 (221,279) 5,785 0.00 (82,682)
2/1 2013 149,044 (14,904) 0 (67,529) 5,785 0.00 72,396
8/1 2013 149,044 (14,904) 0 (222,529) 5,785 0.00 (82,604)
2/1 2014 150,534 (15,053) 0 (63,654) 5,785 0.00 77,612
8/1 2014 150,534 (15,053) 0 (228,654) 5,785 0.00 (87,388)
2/1 2015 152,040 (15,204) 0 (59,529) 5,785 0.00 83,092
8/1 2015 152,040 (15,204) 0 (234,529) 5,785 0.00 (91,908)
2/1 2016 153,560 (15,356) 0 (55: 154) 5,785 0.00 88,835
8/1 2016 153,560 (15,356) 0 (240,154) 5,785 0.00 (96,165)
2/1 2017 155,096 (15,510) 0 (50,413) 5,785 0.00 94,958
8/1 2017 155,096 (15,510) 0 (245,413) 5,785 0.00 (100,042)
2/1 2018 156,647 (15,665) 0 (45,343) 5,785 0.00 101,424
8/1 2018 156,647 (15,665) 0 (250,343) 5,785 0.00 (103,576)
2/1 2019 158,213 (15,821) 0 (39,962) 5,785 0.00 108,215
8/1 2019 158,213 (15,821) 0 (254,962) 5,785 0.00 (106,785)
2/1 2020 159,795 (15,980) 0 (34,264) 5,785 0.00 115,336
8/1 2020 159,795 (15,980) 0 (259,264) 5,785 0.00 (109,664)
/1 2021 161,393 (16,139) 0 (28,218) 5,785 0.00 122,821
/1 2021 161,393 (16,139) 0 (268,218) 5,785 0.00 (117,179)
2/1 2022 163,007 (16,301) 0 (21,738) 5,785 0.00 130,754
8/1 2022 163,007 (16,301) 0 (271,738) 5,785 0.00 (119,246)
2/1 2023 164,637 (16,464) 0 (14,988) 5,785 0.00 138,971
8/1 2023 164,637 (16,464) 0 (279,988) 5,785 0.00 (126,029)
2/1 2024 166,283 (16,628) 0 (7,700) 5,785 0.00 147,740
8/1 2024 166,283 (16,628) 0 (287,700) 5,785 0.00 (132,260)
2/1 2025 167,946 (16,795) 0 0 5,785 0.00 156,937
8/1 2025 167,946 (16,795) 0 0 5,785 0.00 156,937
2/1 2026 169,626 (16,963) 0 0 5,785 0.00 158,448
8/1 2026 169,626 (16,963) 0 0 5,785 0.00 158,448
2/1 2027 171,322 (17,132) 0 0 5,785 0.00 159,975
8/1 2027 171,322 (17,132) 0 0 5,785 0.00 159,975
2/1 2028 173,035 (17,304) 0 0 5,785 0.00 161,517
8/1 2028 173,035 (17,304) 0 0 5,785 0.00 161,517
2/1 2029 174,766 (17,477) 0 0 5,785 0.00 163,074
8/1 2029 174,766 (17,477) 0 0 5,785 0.00 163,074
7,221,446 (722,145) 0 0 266,110 0 0
ASSUMPTIONS
No Interest Income
Market Value Inflation 1.0000%
.
8/1312007
Prepared by Ehlers
cashflows 8-13-07.xls
~ F}O)
120113
CITY OF RICHFIELD - 2006
STATUS REPORT
PAYMENT RR L YNDALE Net Tax
DATE ILN GALYNS Post 1999 URBAN GRAMERCY GATEWAY CITY BEST Increment
MT YEAR Pre 1999 VILLAGE R.C & TCCH CORNERSTONE BELLA BUY End Of Year
BALANCE
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
2/1 2007 64,401 11,872 7,796 21,575 15,341 14,155 14,041 22,081 34,068 205,328
8/1 2007 64,401 11,872 7,796 21,575 15,341 14,155 14,041 22,081 34,068 205,328
2/1 2008 64,401 11,872 7,796 21,575 15,341 14,155 14,181 22,081 34,777 206,178
8/1 2008 64,401 11,872 7,796 21,575 15,341 14,155 14,181 22,081 34,777 206,178
2/1 2009 64,401 11,872 7,796 21,575 15,341 14,155 14,323 22,081 35,499 207,041
8/1 2009 64,401 11,872 7,796 21,575 15,341 14,155 14,323 22,081 35,499 207,041
2/1 2010 64,401 11,872 7,796 21,575 15,341 14,155 14,466 22,081 36,233 207,918
8/1 2010 0 11,872 7,796 21,575 15,341 14,155 14,466 22,081 36,233 143,518
2/1 2011 0 11,872 7,796 21,575 15,341 14,155 14,611 22,081 36,979 144,409
8/1 2011 0 11,872 7,796 21,575 15,341 14,155 14,611 22,081 36,979 144,409
2/1 2012 0 11,872 7,796 21,575 15,341 14,155 14,757 22,081 37,739 145,314
8/1 2012 0 11,872 7,796 21,575 15,341 14,155 14,757 22,081 37,739 145,314
2/1 2013 0 11,872 7,796 21,575 15,341 14,155 14,904 22,081 38,511 146,234
8/1 2013 0 11,872 7,796 21,575 15,341 14,155 14,904 22,081 38,511 146,234
2/1 2014 0 11,872 7,796 21,575 15,341 14,155 15,053 22,081 39,297 147,169
8/1 2014 0 11,872 7,796 21,575 15,341 14,155 15,053 22,081 39,297 147,169
2/1 2015 0 11,872 7,796 21,575 15,341 14,155 15,204 22,081 40,097 148,119
8/1 2015 0 11,872 7,796 21,575 15,341 14,155 15,204 22,081 40,097 148,119
2/1 2016 0 11,872 7,796 21,575 15,341 14,155 15,356 22,081 40,910 149,085
8/1 2016 0 11,872 7,796 21,575 15,341 14,155 15,356 22,081 40,910 149,085
2/1 2017 0 11,872 7,796 21,575 15,341 14,155 15,510 22,081 41,737 150,065
8/1 2017 0 11,872 7,796 21,575 15,341 14,155 15,510 22,081 41,737 150,065
2/1 2018 0 11,872 7,796 21,575 15,341 14,155 15,665 22,081 42,579 151,062
8/1 2018 0 11,872 7,796 21,575 15,341 14,155 15,665 22,081 42,579 151,062
2/1 2019 0 11,872 7,796 21,575 15,341 14,155 15,821 22,081 43,435 152,075
8/1 2019 0 0 7,796 21,575 15,341 14,155 15,821 22,081 43,435 140,203
2/1 2020 0 0 7,796 21,575 15,341 14,155 15,980 22,081 44,305 141,232
8/1 2020 0 0 7,796 21,575 15,341 14,155 15,980 22,081 44,305 141,232
2/1 2021 0 0 7,796 21,575 15,341 14,155 16,139 22,081 45,191, 142,277
8/1 2021 0 0 7,796 21,575 15,341 14,155 16,139 22,081 45, 19~ 142,277
2/1 2022 0 0 7,796 21,575 15,341 14,,155 16,301 22,081 46,092 143,340
8/1 2022 0 0 7,796 21,575 15,341 14,155 16,301 22,081 46,092 143,340
2/1 2023 0 0 7,796 21,575 15,341 14,155 - 16,464 22,081 47,009 144,419
8/1 2023 0 0 7,796 21,575 15,341 14,155 16,464 22,081 47,009 144,419
2/1 2024 0 0 7,796 21,575 15,341 14,155 16,628 22,081 47,941 145,516
8/1 2024 0 0 0 21,575 15,341 14,155 16,628 22,081 47,941 137,721
2/1 2025 0 0 0 21,575 15,341 14,155 16,795 22,081 48,890 138,835
8/1 2025 0 0 0 21,575 15,341 14,155 16,795 22,081 48,890 138,835
2/1 2026 0 0 0 21,575 15,341 14,155 16,963 22,081 0 90,113
8/1 2026 0 0 0 21,575 15,341 14,155 16,963 22,081 0 90,113
2/1 2027 0 0 0 0 0 0 17,132 22,081 0 39,214
8/1 2027 0 0 0 0 0 0 17,132 22,081 0 39,214
2/1 2028 0 0 0 0 0 0 17,304 22,081 0 39,385
8/1 2028 0 0 0 0 0 0 17,304 22,081 0 39,385
2/1 2029 0 0 0 0 0 0 17,477 22,081 0 39,558
8/1 2029 0 0 0 0 0 0 17,477 22,081 0 39,558
450,804 296,803 272,853 862,980 613,620 566,180 722,145 1,015,744 1,562,579 6,363,707
5.50% 383,650 201,381 164,616 492,039 349,863 322,815 376,598 542,198 882,149 3,615,872
TOTAL ADMINISTRATION
No Interest Income
No Market Value Inflation
8/1312007
Prepared by Ehlers
cashflows 8-13-07.xls
t)/?JO
130113 CITY OF RICHFIELD. 2006
STATUS REPORT
TOTAL HOUSING
A YMENT New Home Net Tax NetTax
DATE URBAN GRAMERCY CITY BEST And Kids Increment Increment
MT YEAR VILLAGE BELLA BUY Transformation At Home EOY TOTAL
BALANCE
1,375,833
2/1 2007 32,362 23,011 0 238,479 (278,420) (75,000) (35,000) (44,546) (139,115) 1,236,718
8/1 2007 32,362 23,011 0 238,479 (278,420) (75,000) (35,000) 0 (94,569) 1,142,149
2/1 2008 32,362 23,011 0 243,443 (368,415) (85,000) (140,000) (42,343) (336,942) 805,207
8/1 2008 32,362 23,011 0 243,443 (368,415) (85,000) (140,000) 0 (294,599) 510,608
2/1 2009 32,362 23,011 0 248,493 0 0 0 (45,418) 258,448 769,056
8/1 2009 32,362 23,011 0 248,493 0 0 0 0 303,866 1,072,922
2/1 2010 32,362 23,011 0 253,631 0 0 0 (43,018) 265,986 1,338,907
8/1 2010 32,362 23,011 0 253,631 0 0 0 0 309,003 1,647,910
2/1 2011 32,362 23,011 0 258,857 0 0 0 (45,498) 268,732 1,916,642
8/1 2011 32,362 23,011 0 258,857 0 0 0 0 314,229 2,230,871
2/1 2012 32,362 23,011 0 264,173 0 0 0 (47,573) 271,973 2,502,644
8/1 2012 32,362 23,011 0 264,173 0 0 0 0 319,545 2,822,389
2/1 2013 32,362 23,011 0 269,581 0 0 0 (49,248) 275,705 3,098,094
8/1 2013 32,362 23,011 0 269,581 0 0 0 0 324,953 3,423,047
2/1 2014 32,362 23,011 0 275,082 0 0 0 (30,746) 299,708 3,722,755
8/1 2014 32,362 23,011 0 275,082 0 0 0 (42,379) 288,075 4,010,831
2/1 2015 32,362 23,011 0 280,678 0 0 0 0 336,050 4,346,881
8/1 2015 32,362 23,011 0 280,678 0 0 0 (108,121) 227,929 4,574,809
2/1 2016 32,362 23,011 0 286,370 0 0 0 0 341,743 4,916,552
8/1 2016 32,362 23,011 33,122 286,370 0 0 0 (111,996) 262,868 5,179,420
2/1 2017 32,362 23,011 33,122 292,161 0 0 0 0 380,655 5,560,075
8/1 2017 32,362 23,011 33,122 292,161 0 0 0 (115,406) 265,249 5,825,324
2/1 2018 32,362 23,011 33,122 298,051 0 0 0 0 386,546 6,211,870
8/1 2018 32,362 23,011 33,122 298,051 0 0 0 (118,256) 268,290 6,480,160
2/1 2019 32,362 23,011 33,122 304,044 0 0 0 0 392,538 6,872,698
8/1 2019 32,362 23,011 33,122 304,044 0 0 0 0 392,538 7,265,236
2/1 2020 32,362 23,011 33,122 310,139 0 0 0 0 398,634 7,663,870
8/1 2020 32,362 23,011 33,122 310,139 0 0 0 0 398,634 8,062,503
2/1 2021 32,362 23,011 33,122 316,340 0 0 0 0 404,83,\, 8,467,338
8/1 2021 32,362 23,011 33,122 316,340 0 0 0 0 404,834 8,872,172
2/1 2022 32,362 23,011 33,122 322,647 0 0 0 0 411,142 9,283,314
8/1 2022 32,362 23,011 33,122 322,647 0 0 0 0 411,142 9,694,456
2/1 2023 32,362 23,011 33,122 329,064 0 0 , 0 0 417,559 10,112,015
8/1 2023 32,362 23,011 33,122 329,064 0 0 0 0 417,559 10,529,574
2/1 2024 32,362 23,011 33,122 335,591 0 0 0 0 424,086 10,953,659
8/1 2024 32,362 23,011 33,122 335,591 0 0 0 0 424,086 11,377,745
2/1 2025 32,362 23,011 33,122 342,231 0 0 0 0 430,725 11,808,471
8/1 2025 32,362 23,011 33,122 342,231 0 0 0 0 430,725 12,239,196
2/1 2026 0 0 33,122 0 0 0 0 0 33,122 12,272,318
8/1 2026 0 0 33,122 0 0 0 0 0 33,122 12,305,440
2/1 2027 0 0 33,122 0 0 0 0 0 33,122 12,338,562
8/1 2027 0 0 33,122 0 0 0 0 0 33,122 12,371,664
2/1 2028 0 0 33,122 0 0 0 0 0 33,122 12,404,806
8/1 2028 0 0 33,122 0 0 0 0 0 33,122 12,437,929
2/1 2029 0 0 33,122 0 0 0 0 0 33,122 12,471,051
8/1 2029 0 0 33,122 0 0 0 0 0 33,122 12,504,173
2/1 2030 0 0 33,122 (0) 0 0 0 0 33,122 12,537,295
8/1 2030 0 0 33,122 0 0 0 0 0 33,122 12,570,417
1,229,747 874,409 960,541 10,938,106 (1,293,670) (320,000) (350,000) (844,548) 11,194,584
5.50% 679,192 496,219 351,509 5,848,956 5,075,994
.
8/1312007
Prepared by Ehlers
cashflows 8-13-o7.xls
.
.
.
AGENDA ITEM #
REpORT #
6
35
......
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
AUGUST 20, 2007
REpORT PREPARED By:
VANESSA HAIGHT, HOUSING SPECIALIST
NAME, TITLE
REpORT PRESENTER:
VANESSA HAIGHT, HOUSING SPECIALIST
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR'
ITEM FOR HRA CONSIDERATION:
Consideration of revised Subordination Policy for Housing and Redevelopment Authority
loans.
I.
RECOMMENDED ACTION:
By Motion: Approval of revised Subordination Policy for Housing and
Redevelopment Authority loans.
I II.
BACKGROUND I
The Housing and Redevelopment Authority (HRA) provides Richfield residents with
financing for remodeling, repair, and second mortgages for purchasing homes. The
HRA places a lien on the property to secure this financing. The HRA's lien is, in
most cases, a junior lien on the property after a first mortgage. The payment is
deferred to a future time such as the sale of the home. When homeowners attempt
to refinance their first mortgage or obtain an equity line of credit, the new lender
requests a subordination from the HRA in order for their lien to be in a superior
position.
In July, the HRA discussed changes to the subordination policy. Staff has drafted a
new policy, including the HRA's suggestions. If approved, the subordination policy
will become effective immediately.
.
.
.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. In August of 2006, the HRA approved subordination guidelines.
Beginning several months ago, the HRA has suggested additional
revisions to the subordination policy. The attached policy reflects
these suggested revisions.
I B. CRITICAL ISSUES I
. An HRA approved subordination policy will provide staff with enough
guidance to process most subordination requests.
. If necessary, a subordination request may come before the HRA for
final decision.
I C. FINANCIAL I
. A subordination policy helps to protect the HRA's financial interests.
. It is suggested that the fee for a subordination request be raised from
$50.00 to $75.00 due to the increased analysis the revised policy will
require.
!D.
LEGAL I
. John Dean, HRA legal counsel, and Corrine Thompson, City legal
counsel, have reviewed the revised subordination policy.
I IV. ALTERNATIVE RECOMMENDATION(S)
. Do not approve policy.
. Approve alternate policy.
I V. ATTACHMENTS
. Subordination and Satisfaction Policy
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. N/A
t/{
.
RICHFIELD HRA
SUBORDINATION & SATISFACTION POLICY
1.
Subordinations:
A. Requests for subordination of the interest of the Richfield HRA in real property
shall be considered after the lender has submitted a Subordination Request
Form. The completed form shall contain the following information:
1. The property address.
2. The mortgagor name.
3. 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.
4. The closing date.
5. The full name of the lending institution as it will appear on the
subordination.
6. The lending institution's state of incorporation.
7. Information regarding debt on the property:
. . Amount of the loan to which HRA would be subordinating
. Amount of HRA lien
. Outstanding balance on all other remaining liens
. Maximum indebtedness under all Equity lines of credit
. Amount of any equity being removed
. Total projected indebtedness
. Ratio of all indebtedness to which the HRA lien would be
subordinated, compared to the value of the property
8. The value of the property. The lender shall attach a copy of the current
appraisal or other evidence of market value of the property that is
acceptable to the HRA.
9. A copy of current title work that has been prepared (must indicate all
debt against the property).
10. Estimated closing costs/settlement statement.
11. A copy of the proposed subordination agreement.
B. In general, the Richfield HRA will subordinate its mortgage interest to a refinance
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.
8/20/07
&/1-
.
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. The proposed superior mortgage must not be a Reverse Mortgage.
7. If no more than one subordination request has been approved by the
HRA in the past.
8. Property taxes, if not escrowed by the superior mortgage holder, must be
current.
9. In most cases, interest-only loans or loans with interest-only options 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 H RA,
and 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.
C.
Subordination requests will be processed by Community Development
Department staff, who will submit the request with a recommendation for action,
to the Housing & Redevelopment Manager. The Manager 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.
D.
Subordination requests will be subject to a processing fee of $75.00 or as
established by the HRA, which must be paid when the subordination request is
submitted to the HRA. Fees are not refundable.
3. Satisfactions:
A. 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.
.
.
AGENDA ITEM #
REpORT #
8
16
.......
STAFF REpORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
AUGUST 20, 2007
REpORT PREPARED By:
CHRIS REGIS, FINANCE MANAGER
NAME, TiTLE
REpORT PRESENTER:
STEVEN 1. DEVICH, EXECUTIVE
DI R
REVIEWED BY HRA
EXECUTIVE DIRECTOR:
;c.A
. ITEM FOR HRA CONSIDERATION:
Consideration of resolutions approving proposed property tax levy for payable 2008 for.
certification to Hennepin County.
1. RECOMMENDED ACTION:
By Motion: Adopt the resolutions approving the 2008 Proposed
Housing and Redevelopment Authority Budget and Tax Levy and
2007 Revised Housing and Redevelopment Authoritv Budget.
I II. BACKGROUND
N/A
.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. Minnesota Statutes require adoption of a preliminary levy from each
taxing authority.
. The budget and accompanying proposed levy for 2008 are ready for
consideration.
. Even though a pubic hearing for the HRA tax levy is not required by
State Statute, this does not preclude the HRA from opening this item
up for public discussion if the HRA desires to do so.
0820budget
.
.
.
I B.
CRITICAL ISSUES I
. As required by State Statutes, each taxing authority must certify its
proposed tax levy for the payable year 2008 to the County Auditor on
or before September 15, 2007.
I C. FINANCIAL I
. The Proposed 2008 HRA levy represents an 8.55% increase from the
previous year's levy.
. The levy is approximately $30,000 less than the maximum HRA levy
established by law of the .0144% of the City's total taxable market
value.
I D. LEGAL
. N/A
I IV. ALTERNATIVE RECOMMENDATION(S) I
. The HRA could adopt a preliminary levy less than the one proposed herein.
However, that would not provide for programs that are recommended in the
2007 Revised/2008 Proposed budget.
I V. ATTACHMENTS I
. Resolution Approving Proposed 2008 Housing and Redevelopment Authority
Budget and Certifying the 2008 Tax Levy
. Resolution Authorizing Revision of the 2007 Budget of the Housing and
Redevelopment Authority of Richfield
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. N/A
HRA RESOLUTION NO.
. RESOLUTION APPROVING PROPOSED 2008 HOUSING AND REDEVELOPMENT
AUTHORITY BUDGET AND CERTIFYING THE 2008 TAX LEVY
BE IT RESOLVED by the Housing and Redevelopment Authority of the City of
Richfield, Minnesota as follows:
Section 1.
The budget for the Housing and Redevelopment Authority
General Fund of Richfield for the year 2008 in the amount of
$560,910 is hereby ratified.
Section 2.
The estimated gross revenue of the Housing and Redevelopment
Authority General Fund of Richfield from all sources, including
general ad valorem tax levies as hereinafter set forth for the year
2008, and as the same are more fully detailed in the Executive
Director's official copy of the budget for the year 2008, in the
amount of $488,790 is hereby approved.
Section 3.
There is hereby levied upon all taxable property in the City of
Richfield an ad valorem tax in 2007, payable in 2008 for the
following purposes:
.
Housing and Redevelopment Authority
$444,500
Section 4.
A certified copy of this resolution shall be transmitted to the County
Auditor.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of August, 2007.
Suzanne M. Sandahl, Chair
ATTEST:
Donna Drummond, Secretary
.
.
.
.
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING REVISION OF THE 2007 BUDGET OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
WHEREAS, Resolution NO. 995 appropriated funds for personal services and other
expenses and capital outlay for the Housing and Redevelopment Authority for the year
2007, and ~
WHEREAS, The Executive Director has requested a revision of the 2007 budget as
detailed in the 2008 budget document.
NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority of Richfield, Minnesota as follows:
Section 1. That the 2007 appropriation for the Housing and Redevelopment
Authority General Fund be revised as follows:
$104,840 increase
Section 2. Estimated 2007 gross revenue of the Housing and Redevelopment
Authority General Fund from all sources, as the same are more fully
detailed in the Executive Director's official copy of the 2007 budget
document, are hereby revised as follows:
$3,900 increase
Section 3. That the Executive Director bring into effect the provisions of this
resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 20th day of August, 2007.
Suzanne M. Sandahl, Chair
ATTEST:
Donna Drummond, Secretary