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CITY OF RICHFIELD, MINNESOTA WEDNESDAY, JANUARY 23, 2013 RICHFIELD MUNICIPAL CENTER 6700 PORTLAND AVENUE SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY WORKSESSION BARTHOLOMEW ROOM 6:00 P.M. AGENDA Call to order Roll call 1. Discussion regarding Lakes at Lyndale Connectivity Plan Notes: Adjournment REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS 7:00 P.M. AGENDA Call to order Roll call 1. Consideration of election of HRA officers for 2013 Staff Report No. 2 Notes: 2. Approval of minutes of (1) Regular HRA Meeting of December 17, 2012 and (2) Special HRA Meeting of January 7, 2013 3. HRA approval of agenda 4. HRA Programs/Community Development 2012 Year in Review 5. Consent Calendar contains several separate items which are acted upon by the HRA in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further HRA action on these items is necessary. However, any HRA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for HRA discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of continuing public hearing to February HRA meeting regarding sale of 6345 Bloomington Avenue to Brandl/Anderson Homes, Inc. S.R. No. 3 B. Consideration of approval of designating Community Development Director as Acting Executive Director of HRA for 2013 in event Executive Director is absent from City S.R. No. 4 C. Consideration of approval of resolutions designating official depositories for HRA, including collateral, for 2013 S.R. No. 5 D. Consideration of approval of resolution to abide by annual City Council decision designating official newspaper S.R. No. 6 E. Consideration of approval of resolution authorizing purchase of real property located at 6416-16th Avenue through New Home Program S.R. No. 7 F. Consideration of approval of HRA's revised Administrative Plan for Richfield's Section 8 Housing Assistance Program S.R. No. 8 G. Consideration of approval of adjustment of payment standard for Section 8 Rent Assistance Program S.R. No. 9 H. Consideration of approval of Consulting Agreement with Center for Energy and Environment to provide professional services for Residential Energy Program S.R. No. 10 I. Consideration of approval of contract with S.R. Stevens Excavating, Inc. for demolition of 6310 Irving Avenue and 7225 First Avenue S.R. No. 11 J. Consideration of approval of resolution authorizing City of Richfield's participation in Hennepin County's 2013 economic development initiative "Open to Business" S.R. No. 12 Notes: 6. Consideration of request for subordination of HRA Transformation Program loan at 7720 Vincent Avenue Staff Report No. 13 Notes: 7. Public hearing regarding resolution authorizing sale of 7537 Dupont Avenue to Colette Therese O'Shea and execution of Contract for Private Development with Colette Therese O'Shea for development of single family home under Richfield Rediscovered Program Staff Report No. 14 Notes: 8. Consideration of membership of task force to participate in preparation of Richfield's Housing Vision Staff Report No. 15 Notes: 9. HRA discussion items Notes: 10. Executive Director Report Notes: 11. Claims and Payroll Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. AGENDA ITEM#: 1 REPORT#: 2 =gala STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2013 REPORT PREPARED BY: CHERYL KRUMHOLZ,EXEC. COOR. NAME,TITLE REPORT PRESENTER: STEVEN L. DEVICH,EXECUTIVE DIRECTOR NAME, '. 1 REVIEWED BY EXECUTIVE DIRECTOR: = I • ITEM FOR HRA CONSIDERATION: Consideration of the election of officers for the Housing and Redevelopment Authority (HRA) for 2013. I. RECOMMENDED ACTION: • By Motion: Elect officers for the Richfield Housing and Redevelopment Authority for 2013. II. BACKGROUND The bylaws of the Richfield Housing and Redevelopment provide that the HRA hold an annual meeting in January. The bylaws further provide that the Chair, Vice Chair and Secretary of the HRA be elected at this meeting. Officers for 2012 were: Sue Sandahl, Chair Steven J. Quam, Vice Chair Doris Rubenstein, Secretary 0123officers III. BASIS OF RECOMMENDATION A. POLICY • The bylaws of the Richfield HRA provide that the HRA hold an annual meeting in January. • The bylaws further provide that the Chair, Vice Chair and Secretary of the HRA be elected at this meeting. B. CRITICAL ISSUES • The bylaws of the Richfield HRA require that an election of officers for the HRA be held at the annual meeting in January. IV. ALTERNATIVE RECOMMENDATIONS) • Do not hold the election. However, this would be in contradiction of the HRA bylaws. V. PRINCIPAL PARTIES EXPECTED AT MEETING • None. HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES ge,C4P"eect R ichfield, Minnesota Regular Meeting December 17, 2012 CALL TO ORDER The meeting was called to order by Chair Sandahl at 7:00 p.m. ROLL CALL HRA Members Sue Sandahl, Chair, Steven J. Quam; Doris Rubenstein; Present: and David Gepner HRA Members Debbie Goettel Absent: Staff Present: John Stark, Acting Executive Director/Community Development Director; Karen Barton, Assistant Community Development Director; Chris Regis, Finance Manager; Myrt Link, Community Development Accountant; and Nancy Gibbs, City Clerk. Item #1 APPROVAL OF MINUTES OF (1) REGULAR HRA MEETING OF NOVEMBER 19, 2012 M/Quam, S/Rubenstein to approve the minutes of(1) Regular HRA Meeting of November 19, 2012. Motion carried 4-0. Item #2 HRA APPROVAL OF AGENDA M/Gepner, S/Rubenstein to approve the agenda. Motion carried 4-0. Item #3 CONSENT CALENDAR A. Consideration of approval of resolution decertifying Interstate-Lyndale-Nicollet (ILN) Tax Increment Financing District S.R. No. 52 HRA Meeting -2- December 17,2012 HRA RESOLUTION NO. 1136 RESOLUTION APPROVING THE DECERTIFICATION OF THE INTERSTATE-LYNDALE-NICOLLET TAX INCREMENT FINANCING DISTRICT OF THE CITY OF RICHFIELD This resolution appears as HRA Resolution No. 1136. B. Consideration of approval of transfer of assets to close out funds that are part of Interstate-Lyndale-Nicollet Tax Increment District S.R. No. 53 C. Consideration of approval of resolution authorizing internal loan of up to $675,000 to fund deficit in Interstate-Lyndale-Nicollet Redevelopment Project Fund S.R. No. 54 HRA RESOLUTION NO. 1137 RESOLUTION AUTHORIZING AN INTERNAL LOAN UP TO $675,000 FOR FUNDING A DEFICIT IN THE INTERSTATE-LYNDALE-NICOLLET REDEVELOPMENT PROJECT FUND This resolution appears as HRA Resolution No. 1137. D. Consideration of approval of annual Consultant Services Agreement with Greater Metropolitan Housing Corporation for 2013 S.R. No. 55 M/Gepner, S/Quam to approve the Consent Calendar. Motion carried 4-0. Item #4 CONSIDERATION OF REQUEST FOR SUBORDINATION OF HRA FORECLOSURE PURCHASE INCENTIVE PROGRAM LOAN AT 7625 EMERSON AVENUE S.R. NO. 56 Assistant Community Development Director Barton presented Staff Report No. 56. Daniel Helgemoe, 7625 Emerson Avenue, explained why he wants to subordinate. Commissioner Quam stated his concerns regarding this subordination. He stated that this is only a benefit to the homeowner and no benefit or security for the HRA. M/Gepner, S/Rubenstein to approve request for subordination of HRA Foreclosure Purchase Incentive Program Loan at 7625 Emerson Avenue. Motion carried 3-1. (Quam opposed) Item #5 PUBLIC HEARING REGARDING RESOLUTION AUTHORIZING SALE OF 6825 GRAND AVENUE TO BRANDL ANDERSON HOMES AND AUTHORIZING CONTRACT FOR PRIVATE DEVELOPMENT WITH BRANDL ANDERSON HOMES FOR CONSTRUCTION OF SINGLE FAMILY HOME UNDER RICHFIELD REDISCOVERED PROGRAM S.R. NO. 57 Assistant Community Development Director Barton presented Staff Report No. 57. Brian Helvick, Brandt Anderson Homes, was available for questions. HRA Meeting -3- December 17,2012 Pat Elliott, 6720 Oliver Avenue, suggested that staff inform residents of what type of construction is taking place on City lots, including pictures and/or diagrams of homes that are being built, so neighborhoods are informed as to what is under construction at sites. Commissioner Gepner asked how many lots are still available. Assistant Community Development Director Barton responded that eight or nine lots are still available for sale. She mentioned that this house is the ninth new house built through the Richfield Rediscovered Program this year. M/Sandahl, S/Rubenstein to close public hearing. Motion carried 4-0. M/Rubenstein, S/Gepner that the following resolution be adopted and that it be made part of these minutes and to authorize contract for private development with Brandt Anderson Homes for construction of single family home under Richfield Rediscovered Program: HRA RESOLUTION NO. 1138 RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 6825 GRAND AVENUE TO BRANDL ANDERSON HOMES, INC. This resolution appears as HRA Resolution No. 1138. Motion carried 4-0. Item #6 HRA DISCUSSION ITEMS Commissioner Gepner asked about the January 7th Special HRA Meeting. Acting Executive Director Stark responded that he will send the HRA Commissioners a selection of start times to choose from. Commissioner Gepner commented on a brochure that had been given to the commissioners before tonight's meeting regarding bus bench advertising. He stated that he is not in favor of benches with advertising. Chair Sandahl stated that this issue may need to move on to the Transportation Commission. She also encouraged Commissioner Gepner to bring this issue to the City Council. Item #7 EXECUTIVE DIRECTOR REPORT Acting Executive Director Stark reported that staff is searching for committee members for the Housing Vision technical group. Item #8 CLAIMS AND PAYROLL M/Quam, S/Rubenstein that the following claims and payrolls be approved: HRA Meeting -4- December 17,2012 U.S. BANK 12/17/2012 Section 8 Checks: 122735 - 122891 $ 172,821.92 HRA Checks: 31624 - 31649 $ 153,816.52 TOTAL $ 326,638.44 Motion carried 4-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 7:34 p.m. Date Approved: January 23, 2013 Suzanne M. Sandahl Chair Nancy Gibbs John Stark City Clerk Acting Executive Director • HOUSING AND REDEVELOPMENT ig ,eed AUTHORITY MEETING MINUTES eGAG Richfield, Minnesota Special HRA Meeting January 7, 2013 CALL TO ORDER The meeting was called to order by Chair Sandahl at 7:00 p.m. ROLL CALL HRA Members Sue Sandahl, Chair, Steven J. Quam; Doris Rubenstein; Debbie Goettel; Present: and David Gepner Staff Present: Steven L. Devich, Executive Director; John Stark, Community Development Director; Mike Eastling, Public Works Director; Karen Barton, Assistant Community Development Director; Jeff Pearson, Transportation Engineer; and Nancy Gibbs, City Clerk. Item #1 CONSIDERATION OF 17TH AVENUE SPECIAL ASSESSMENT BOND PROCESS S.R. NO. 1 Executive Director Devich presented Staff Report No. 1. Public Works Director Eastling explained the current status of the project. Transportation Engineer Pearson presented an update on negotiation talks with homeowners on 17th Avenue. He stated that the City currently has 11 signed or verbal purchase agreements. Community Development Director Stark explained there is some financial risk to the HRA. Commissioner Quam stated that if the process takes longer than two years, the HRA should reevaluate what we would invest if it looks like the future development area also includes 16th Avenue homes. He wondered if, from a real estate standpoint, the site assembly could be completed in two years. Community Development Director Stark said he believes that realistically it will take a couple of years. Commissioner Quam stated that there would be obvious benefits to doing this all at the same time. However, he also wondered if there would be negatives if this is done without knowing what type of infrastructure or traffic flows will be needed. Executive Director Devich commented that if we are going to move ahead with this project it is crucial that we have this piece of the project. He stated that we have a lot of money coming in Special HRA Meeting -2- January 7,2013 from other jurisdictions to help fund this project and the City could not do this project without these funds. He continued that although this might be a risk, he believes it is a very reasonable risk to take. M/Sandahl, S/Goettel to approve 17th Avenue special assessment bond process. Motion carried 4-1. (Quam opposed) ADJOURNMENT The meeting was adjourned by unanimous consent at 7:33 p.m. Date Approved: January 23, 2013 Suzanne M. Sandahl Chair Nancy Gibbs Steven L. Devich City Clerk Executive Director AGENDA ITEM#: 5A REPORT#: 3 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2013 REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON, HOUSING SPECIALISTS NAME,TITLE REPORT PRESENTER: KAREN BARTON, ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: /m ��� `�GNATU ' REVIEWED BY EXECUTIVE DIRECTOR: ,''I `��� ITEM FOR HRA CONSIDERATION: Continuation of a public hearing regarding the sale of 6345 Bloomington Avenue to Brand)/Anderson Homes, Inc. I. RECOMMENDED ACTION: By Motion: Continue the public hearing regarding the sale of 6345 Bloomington Avenue to Brandt/Anderson Homes, Inc. to the February meeting. II. BACKGROUND Brandl/Anderson Homes, Inc. (Builder) submitted an application to acquire the lot at 6345 Bloomington Avenue in order to build a new home under the Richfield Rediscovered Program. The application met the program guidelines and a public hearing was scheduled for the Housing & Redevelopment Authority (HRA) consideration on January 23, 2013. Since that time, the Builder has determined that additional survey work is needed to address grade, driveway and curb cut issues that may affect placement of the house. The Builder has asked that the public hearing be continued until February to allow for time to address those issues. 01232013 6345 Bloomington (Brandi Anderson)continue PH.doc III. BASIS OF RECOMMENDATION A. POLICY • Additional time is needed to make appropriate decisions regarding the house design and placement that meets City ordinances and Richfield Rediscovered Program requirements. B. CRITICAL TIMING ISSUES • The Builder has requested additional time to resolve grading, driveway issues, and curb cut issues that may affect the placement of the house. C. FINANCIAL • Resolution of the issues may impact the cost of the development, which the Builder needs to be aware of before closing on the lot. D. LEGAL • Notice of the public hearing was published in the Sun-Current on January 10, 2013; therefore, the hearing must either be held or continued to a future meeting. IV. ALTERNATIVE RECOMMENDATION(S) • Conduct and close the public hearing. V. ATTACHMENTS • None VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A AGENDA ITEM#: 5B REPORT#: 4 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2013 REPORT PREPARED BY: CHERYL KRUMHOLZ, EXEC. COOR. NAME,TITLE REPORT PRESENTER: STE L. DEVICH, EXECUTIVE DIRECTOR NAMI/ITLIi REVIEWED BY EXECUTIVE DIRECTOR: ` I 4 ITEM FOR HRA CONSIDERATION: Consideration of designating the Community Development Director as the Acting Executive Director of the Housing and Redevelopment Authority (HRA) for 2013 in the event the Executive Director is absent from the City. I. RECOMMENDED ACTION: By Motion: Designate the Community Development Director as Acting Executive Director of the HRA in the event the Executive Director is absent from the City. II. BACKGROUND Since the City Manager also serves as the HRA Executive Director, it is recommended that the Community Development Director be designated by the HRA as the Acting Executive Director to serve in that capacity during the absence of the Executive Director. The Community Development Director was designated Acting Executive Director for 2012. III. BASIS OF RECOMMENDATION A. POLICY 0123acting • Designation of an Acting Executive Director is a normal business action of the HRA similar to the designation of depositories and the official newspaper. • The Community Development Director has been designated as the Acting Executive Director in the past. B. CRITICAL ISSUES • It is necessary to designate a person to serve as the Acting Executive Director to ensure continuation of HRA operations during an absence of the Executive Director. IV. ALTERNATIVE RECOMMENDATION(S) • Defer this designation to another HRA meeting. V. PRINCIPAL PARTIES EXPECTED AT MEETING • None. AGENDA ITEM#: 5C REPORT#: 5 Maddll STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2013 REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER NAME,TITLE REPORT PRESENTER: STEVEN L. DEVICH, EXECUTIVE DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: , a t� i - i V _ SIGNA r REVIEWED BY EXECUTIVE DIRECTOR: '' f('�s 1 ITEM FOR BRA CONSIDERATION: Consideration of resolutions designating official depositories for the Housing and Redevelopment Authority for 2013, including the approval of collateral. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolutions designating official depositories, with the understanding that the HRA could not invest in any of the depositories beyond the level of insurance coverage of the pledged collateral. II. BACKGROUND N/A III. BASIS OF RECOMMENDATION N/A A. POLICY • In accordance with Minnesota Statutes Section 118A.01 - 118A.06, the HRA of Richfield must designate financial institutions annually. The institutions must pledge the collateral over and above the amount of federal insurance, as public depositories. 012312HRADepositories • U.S. Bank acts as the banking institution in the HRA's banking arrangement with the 4M Fund. Monies received, checks written, by the HRA, flow through U.S. Bank, however, at the end of each business day, any proceeds remaining in HRA U.S. Bank accounts are swept to the 4M Fund to be invested. Therefore, at the end of the business day the HRA accounts are zero, which means the collateral requirements of Minnesota Statutes Section 118A.03 are not required. Accordingly, U.S. Bank has met all other statutory requirements and should be considered as a depository for the HRA's vendor accounts and all savings deposits. • The HRA must also designate annually, certain savings and loan associations, banks, and credit unions as official depositories for deposit and investment of certain HRA funds. With approval of these official depositories, the HRA will be able to invest funds in these institutions, not exceeding the federal insurance of$250,000. • Finally, a designation must be made for certain financial institutions as depositories for the investment of HRA funds for 2013. These institutions, such as investment brokerage firms, offer government securities in the manner required by law. These financial institutions include U.S. Bank, RBC Damn Rauscher, Wells Fargo Institutional Brokerage & Sales, Morgan Keegan, Northland Securities and the 4M Fund. B. CRITICAL TIMING ISSUES • N/A C. FINANCIAL • N/A D. LEGAL • The HRA is required by Minnesota Statute 118A.01 - 118A.06, to designate as a depository of funds, insured banks or thrift institutions. Any collateral so deposited is accompanied by an assignment pledged to the HRA in the amount specified in the attached resolutions. IV. ALTERNATIVE RECOMMENDATION(S) • The HRA could solicit other financial institutions for official depositories, but past relationships with the depositories recommended have proven satisfactory for the City. V. ATTACHMENTS • Resolution designating US Bank a depository of funds of the HRA of Richfield for the year 2013. • Resolution designating certain savings and loan associations, banks, and credit unions as depositories for the investment of HRA funds in 2013. • Resolution designating certain financial institutions as depositories for the investment of HRA of Richfield funds in 2013. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None 5C, T RESOLUTION NO. RESOLUTION DESIGNATING U.S. BANK A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD FOR THE YEAR 2013 BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as follows: That, in accordance with Minnesota Statutes, Section 118A.01- 118A.06, U.S. Bank be, and hereby is designated a depository of the funds of the Housing and Redevelopment Authority of Richfield, subject to modification and revocation at any time by said Housing and Redevelopment Authority, and subject to the following terms and conditions: The said depository shall not be required to give bonds or other securities for such deposits provided that the total sum thereof shall not at any time exceed in any depository the sums for which its deposits are insured under the Acts of Congress of the United States relating to insurance of bank deposits; but that in case such deposits in any such depository shall at any time exceed such insured sum, said depository shall immediately furnish bonds or other security for such excess according to law, approved by the Housing and Redevelopment Authority of Richfield. That said depository shall pay on demand all deposits therein; and shall pay all time deposits, at or after the end of the period for which the same shall be deposited, on demand. BE IT FURTHER RESOLVED, that there shall be maintained a general account in which shall be deposited all monies. The following officers or their facsimile signatures shall sign checks on this account; SUZANNE M. SANDAHL, CHAIR STEVEN L. DEVICH, EXECUTIVE DIRECTOR BE IT FURTHER RESOLVED, that all funds remaining in the account at the end of each business day will be transferred from U.S. Bank to the 4M Fund where funds deposited are invested and insured. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 23rd day of January, 2013. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary SC- a RESOLUTION NO. RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS, BANKS AND CREDIT UNIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2013 BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota: WHEREAS, pursuant to Minnesota Statutes, Sections 118A.01 — 118A.06, municipal funds may be deposited in any Savings and Loan Association, Bank or Credit Union which has its deposits insured by the Federal Deposit Insurance Corporation (FDIC), or National Credit Union Administration (NCUA); and WHEREAS, the amount of said deposits may not exceed the FDIC/NCUA insurance covering such deposits which insurance amount is presently $250,000; and WHEREAS, the deposit of Housing and Redevelopment Authority funds in Savings and Loan Associations and Banks would provide greater flexibility in the Housing and Redevelopment Authority's investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota, as follows: 1. It is hereby found and determined that it is in the best interest of the proper management of Housing and Redevelopment Authority funds that certain Savings and Loan Association and Banks be designated as additional depositories for Housing and Redevelopment Authority funds for 2013. 2. It is further found and determined that the purpose of such depository designation is to facilitate the proper and advantageous investments of Housing and Redevelopment Authority funds and that such designation is not exclusive nor does it preclude the deposit of any Housing and Redevelopment Authority funds in other officially designated depositories of the Housing and Redevelopment Authority. 3. The Treasurer and Finance Manager are hereby authorized to deposit Housing and Redevelopment Authority funds in various depositories up to the amount of $250,000, or such other amount as may be subsequently permitted by law, such deposits to be in the form of demand accounts, payable to the Housing and Redevelopment Authority of Richfield on the signatures of the Housing and Redevelopment Authority Treasurer or Finance Manager. Such deposits may be made and withdrawn from time to time by the Treasurer or Finance Manager as his best judgment and the interests of the Housing and Redevelopment Authority dictates. 4. The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies of the Housing and Redevelopment Authority regarding the investment of Housing and Redevelopment Authority funds. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 23rd day of January, 2013. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary RESOLUTION NO. RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2013 WHEREAS, the Housing and Redevelopment Authority of Richfield has money which is available for investment; and WHEREAS, different financial institutions offer different rates of return on investments; and WHEREAS, the Housing and Redevelopment Authority of Richfield shall purchase U. S. Treasury Bills, U. S. Treasury Notes and other such government securities in the manner required by law from the institution offering the highest rate to the Housing and Redevelopment Authority of Richfield providing greater flexibility in the investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota, in accordance with Minnesota Statutes, Sections 118A.01 — 118A.06, as follows: 1. It is hereby found and determined that it is in the best interest of the proper management of Housing and Redevelopment Authority of Richfield funds that certain financial institutions be designated as additional depositories for Housing and Redevelopment Authority of Richfield funds for 2013. 2. The following financial institutions designated as depositories for the Housing and Redevelopment Authority of Richfield funds: RBC Dain Rauscher, Inc. Morgan Keegan & Company. Wells Fargo Institutional Brokerage & Sales 4M Fund Northland Securities, Inc. 3. The Treasurer and Finance Manager are hereby authorized to deposit the Housing and Redevelopment Authority of Richfield funds in any or all of the depositories herein designated. Such deposits may be made and withdrawn from time to time by the Treasurer or Finance Manager's judgment and as the interest of the Housing and Redevelopment Authority of Richfield dictates. 4. The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies regarding the investment of these funds. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 23rd day of January, 2013. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary AGENDA ITEM#: 5D REPORT#: 6 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2013 REPORT PREPARED BY: NANCY GIBBS. CITY CLERK NAME,TITLE REPORT PRESENTER: STEVEN L.DEVICH,EXECUTIVE DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: Efe- A IGN OP: REVIEWED BY EXECUTIVE DIRECTOR: L.!" . -; , Aka. ITEM FOR HRA CONSIDERATION: Consideration of a resolution to abide by the annual City Council decision designating an official newspaper. I. RECOMMENDED ACTION: By Motion: Approve the resolution to abide by the annual City Council decision designating an official newspaper. II. BACKGROUND Previously a resolution has been annually approved by the HRA to designate the official newspaper for the HRA's publications. However, after researching the HRA bylaws, State Statute, and consulting with HRA Attorney Julie Eddington, it has been concluded that there is no legal requirement for this action to be taken by the HRA on an annual basis. The legal requirement of designating an official newspaper is the sole responsibility of the City Council. Therefore, on advice of HRA Attorney Eddington, staff is recommending that the HRA approve a resolution establishing that the HRA will abide by the annual City Council decision designating the official legal newspaper for the City of Richfield. III. BASIS OF RECOMMENDATION 0123newspaper A. POLICY • The Charter of the City of Richfield requires in Section 13.01 thereof that the City Council annually designate an official newspaper for the City. B. CRITICAL TIMING ISSUES • N/A C. FINANCIAL • N/A D. LEGAL • A newspaper must be designated each year by the City Council for publication of all official and legal City business. IV. ALTERNATIVE RECOMMENDATIONS) • None. V. ATTACHMENTS • Resolution VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None oD- I HRA RESOLUTION NO. RESOLUTION TO ABIDE BY THE ANNUAL CITY COUNCIL DECISION DESIGNATING AN OFFICIAL NEWSPAPER BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as follows: WHEREAS, the Charter of the City of Richfield requires in Section 13.01 thereof that the City Council annually designate an official newspaper for the City. NOW, THEREFORE, BE IT RESOLVED that the Richfield Housing and Redevelopment Authority will abide by the annual City Council decision designating the official legal newspaper for the City of Richfield from this day forward for all publications required to be published therein. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 23rd day of January, 2013. Chair ATTEST: Secretary AGENDA ITEM#: SE REPORT#: 7 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2013 REPORT PREPARED BY: KATE AITCHISON/JULIE URBAN,HOUSING SPECIALISTS NAME,TITLE REPORT PRESENTER: KAREN BARTON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: -14•Itrk fTURF REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of a resolution authorizing the purchase of real property located at 6416 16th Avenue through the New Home Program. I. RECOMMENDED ACTION: By Motion: Approve the attached resolution authorizing the purchase of real property located at 6416 16th Avenue through the New Home Program. II. BACKGROUND The representative for the owner of 6416 16th Avenue has expressed an interest in selling the property to the Housing and Redevelopment Authority (HRA). The property owner has moved to an assisted living facility and is seeking to sell the now-vacant property. The one story house built in 1932 has two bedrooms, a total of 800 square feet, and an oversized, two-car, detached garage. An independent substandardness evaluation was conducted and concluded that the house contains many code and structural deficiencies that would be difficult to correct. The property would be better served with the house being removed and the lot split into two, forty-nine- 01232013 6416 16th Acquisition and-a-half-foot wide lots and made available for the construction of two new houses. The lot is 99 feet wide and 134 feet deep for a total of 13,266 square feet. A subdivision waver was approved by the City Council January 8, 2013 to create two separate lots. The new lots would be 6,350 square feet each. The lots would be made available through the New Home Program to construct two new single family homes affordable to households earning 80 percent of the Twin Cities Area Median Income (AMI). The property is located across the street from the Cedar Corridor Redevelopment Area. Given redevelopment and transportation plans for the Corridor, the lots provide an ideal location for family affordable housing (i.e., convenient access to transit, shopping and recreation facilities). HRA staff obtained an appraisal in the amount of$90,000 for the property. The property owner obtained a second appraisal for $94,000. The owner's representative is seeking $92,500 for the property. The owner's representative is also seeking to sell the property as-is and leave the sealing of any wells on the property to the HRA. The purchase price of$92,500 plus closing costs will be paid through the HRA's New Home Program. This expense is provided for in the 2013 HRA Budget. Funds for sealing the well and demolishing the property are also available in the Budget. III. BASIS OF RECOMMENDATION A. POLICY • The 2008-2018 Richfield Comprehensive Plan states as policy: • Encourage the creation of"move-up" housing through new construction and home remodeling. • Promote the development of a balanced housing stock that is available to a range of income levels. • Through the City's New Home Program, the HRA purchases and removes substandard and functionally obsolete housing and replaces it with new homes designed for families and made available to households earning no more than 80 percent of the AMI. B. CRITICAL TIMING ISSUES • The Purchase Agreement was submitted contingent upon HRA approval. • The property owner has moved to an assisted living facility and is seeking to sell the now-vacant property as soon as soon as possible. • The owner is considered to be a "protected person" by the Court and is represented by a Court-appointed Conservator. The Conservator must receive authorization by the Court to sell the property on the owner's behalf. The petition to do that is currently scheduled for January 24, 2013. C. FINANCIAL • Given that the lot can be split into two 49.5-foot wide lots, the purchase price of$92,500 is reasonable. • Funding for this acquisition and demolition through the New Home Program is in the HRA's 2013 Budget. D. LEGAL • Legal Counsel has prepared the Purchase.Agreement. The Purchase Agreement requires that all Court-required documents for the sale of property on behalf of a protected person be approved by the Examiner of Titles prior to closing. • The Conservator has agreed in principal to the terms of the Purchase Agreement; however, she is not authorized to sign the agreement on behalf of the property owner until after action by the Court. The petition for this authorization is currently scheduled for January 24, 2013. IV. ALTERNATIVE RECOMMENDATION(S) • Do not authorize the purchase of the property. V. ATTACHMENTS • Resolution • Photo of existing structure • Purchase Agreement VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A HRA RESOLUTION NO. RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6416 16TH AVENUE SOUTH 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: 6416 16th Avenue South Legal: Lots 5 and 6, Block 11, "Nokomis Gardens Rearrangement of Blocks 7-11 and 12, Girard Parkview, Hennepin County, Minnesota WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to acquire real property within its area of operation; and WHEREAS, New Home Program funds are available for acquisition purposes. NOW THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield: 1. The purchase price for the property identified is approved at $92,500, plus closing costs, not to exceed $95,000. 2. The Chairperson and Executive Director are authorized to execute a Purchase Agreement and to take other actions necessary to purchase the property for the amount set forth in this resolution. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota on this 23rd day of January, 2013. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary 6416 16th Avenue South i . J is Y ` F t 4 �ti , t{ { t g . t . i i . ar , „ y� rIi. ` %.j T-A i 1,1 r' ' '1V,,na.-.1:4,! ”,- -3 ilf fi _ 'oltre r i s '' ' 1 1`` X x yea .::'cc -} T'- 4-.- ... +I Ti Irv.. 3 PURCHASE AGREEMENT THIS PURCHASE AGREEMENT (the "Agreement") is made as of this day of , 20_, by and between Karen Johnson, as Conservator of the Estate of John J. Priglmeier, Protected Person, single ("Seller"), and the Housing and Redevelopment Authority in and for the City of Richfield , a public body corporate and politic under the laws of the State of Minnesota ("Buyer"). RECITALS Seller is the owner of property located at 6416 16th Avenue South, Richfield, Minnesota, which is legally described on the attached Exhibit A ("Property"). The Property includes includes all plants, shrubs and trees, storm windows and/or inserts, storm doors, screens, awnings, window shades, blinds, curtain-traverse-drapery rods, attached lighting fixtures with bulbs, plumbing fixtures, water heater, heating system, humidifier, central air conditioning, electronic air filter, automatic garage door opener with controls, water softener, cable television outlets and cabling, and built-ins, including dishwasher, garbage disposal, trash compactor, oven(s), cook top stove, microwave oven, hood-fan, intercom and installed carpeting located on the premises which are the property of Seller. The property also includes the following personal property: NONE. Seller is responsible for removal of all personal property. Seller may remove the following items, provided Seller does not cause any unnecessary damage to the Property: AGREEMENT 1. Offer/Acceptance for Sale of Property. The Seller agrees to sell to Buyer the Property and Buyer agrees to purchase the same, according to the terms of this Agreement. 2. Purchase Price for Property and Terms. A. PURCHASE PRICE: The total purchase price for the Property is ninety-two thousand five hundred and 00/100ths Dollars ($92,500.00) (the "Purchase Price"). B. TERMS: (1): EARNEST MONEY. The sum of zero Dollars ($0.00) (the "Earnest Money") shall be paid by Buyer to Seller. (2): BALANCE DUE SELLER. Buyer agrees to pay by check or electronic transfer of funds on the date of closing on the Property (the "Closing Date") any remaining balance of the Purchase Price due to Seller 1 415146v4 CBR RC125-330 according to the terms of this Agreement. (3): DEED/MARKETABLE TITLE. Subject to performance by Buyer, Seller agrees to execute and deliver a Warranty Deed or Personal Representative's Deed conveying marketable title to the Property to Buyer, subject only to the following exceptions: a. Building and zoning laws, ordinances, state and federal regulations. b. Reservation of minerals or mineral rights to the State of Minnesota, if any. c. Public utility and drainage easements of record which will not interfere with Buyer's intended use of the Property. (4): DOCUMENTS TO BE DELIVERED AT CLOSING BY SELLER. In addition to the Warranty Deed required at paragraph 2B(3) above, Seller shall deliver to Buyer: a. Standard form Affidavit of Seller. b. A "bring-down" certificate, certifying that all of the warranties made by Seller in this Agreement remain true as of the Closing Date. c. Certificate that Seller is not a foreign national. d. If an environmental investigation by or on behalf of Buyer discloses the existence of petroleum product or other pollutant, contaminant or other hazardous substance on the Property, either (i) a closure letter from the Minnesota Pollution Control Agency (MPCA) or other appropriate regulatory authority that remediation has been completed to the satisfaction of the MPCA or other authority; or (ii) Agreement for remediation/indemnification and security as Buyer may require. e. Well disclosure certification,if required, or, if there is no well on the Property, the Warranty Deed given pursuant to paragraph 2B(3) above must include the following statement: "The Seller certifies that Seller does not know of any wells on the described real property." If Seller is unaware of the location of a well and there is a building permit issued for the Property prior to installation of a City water system, Buyer agrees to have a licensed well contractor examine the Property for purposes of locating a well and assumes 2 415146v4 CBR RC125-330 responsibility for sealing the well at Buyer's expense. f. The following documents must be approved by the Examiner of Titles prior to closing: i. Conservator's Deed. (Uniform Conveyancing Form required) ii. Certified copy of Letters of Conservatorship. iii. Certified copy of Order Directing Sale. iv. Certified copy of Order Confirming Sale. g. Any other documents reasonably required by Buyer's title insurance company or attorney to evidence that title to the Property is marketable and that Seller has complied with the terms of this Agreement. 3. Contingencies. Buyer's obligation to buy is contingent upon the following: a. Buyer's determination of marketable title pursuant to paragraph 4 of this Agreement; b. Buyer's determination, in its sole discretion, that the results of any environmental investigation of the Property conducted pursuant to this Agreement are satisfactory to Buyer; c. The parties acknowledge that the Richfield zoning ordinance requires that lots in the R district meet certain minimum lot width, and area requirements. If these standards are not met, one or more variances will be necessary prior to construction of a new dwelling on the property. If the City of Richfield does not issue all variances necessary to make the property a buildable lot within the meaning of the zoning ordinance, Buyer at its sole discretion may cancel this Agreement; and d. Approval of this Agreement by Buyer's Board. Buyer shall have until the Closing Date to remove the foregoing contingencies. The contingencies at a., b., and c. d. are solely for the benefit of Buyer and may be waived by Buyer. The contingency at d. may not be waived by either party. If Buyer or its attorney gives written notice to Seller that the contingencies at a., b., c., and d. are duly satisfied or waived, Buyer and Seller shall proceed to close the transaction as contemplated herein. If one or more of Buyer's or Seller's contingencies is not satisfied, or is not satisfied on time, and is not waived, this Agreement shall thereupon be void at the written option of Buyer and Seller shall 3 415146v4 CBR RC125-330 rT return the Earnest Money, if any, to Buyer, and Buyer and Seller shall execute and deliver to each other a termination of this Agreement. As a contingent Agreement, the termination of this Agreement is not required pursuant to Minnesota Statutes, Section 559.21,et. seq. 4. Title Examination/Curing Title Defects. As soon as reasonably possible after execution of this Agreement by both parties, (a) Seller shall surrender any abstract of title and a copy of any owner's title insurance policy for the property, if in Seller's possession or control, to Buyer or to Buyer's designated title service provider; and (b) Buyer shall obtain the title evidence determined necessary or desirable by Buyer. The Buyer shall have 20 days from the date it receives such title evidence to raise any objections to title it may have. Objections not made within such time will be deemed waived. The Seller shall have 90 days from the date of such objection to affect a cure; provided, however, that Seller shall have no obligation to cure any objections, and may inform Buyer of such. The Buyer may then elect to close notwithstanding the uncured objections or declare this Agreement null and void, and the parties will thereby be released from any further obligation hereunder. 5. Environmental Investigation. The Seller warrants that it is not aware of the Property being used for production, storage, deposit or disposal of any toxic or hazardous waste or substance, petroleum product or asbestos product during the period of time Seller has owned the Property. The Seller further warrants that Seller has no knowledge or information of any fact which would indicate the Property was used for production, storage, deposit or disposal of any toxic or hazardous waste or substance, petroleum product or asbestos product prior to the date Seller purchased the Property. Notwithstanding the above, Seller's warranty regarding petroleum products does not preclude the presence of heating oil or other similar products used as a heating fuel for the dwelling but Seller does warrant that if there was a fuel tank on the Property used for the storage of heating oil or other similar product, Seller has no knowledge of any leak in the tank or contamination caused thereby. Seller hereby grants to Buyer and Buyer's agents a license to enter and evaluate the Property for the purpose of conducting an environmental assessment. Further, Buyer or Buyer's agent shall have the right pursuant to the license to bring persons and equipment onto the Property, make inspections and perform tests and analyses as Buyer may deem reasonable to determine the presence of any toxic or hazardous waste, substance, or petroleum product or asbestos product, and ascertain soil conditions on the Property. Buyer shall bear the cost of the environmental assessment. If the results of the environmental assessment are not to the satisfaction of Buyer, Buyer at its sole discretion may cancel this Agreement. If Buyer cancels this Agreement pursuant to this provision, Buyer shall restore the Property to its original condition or nearly so as is reasonably practicable. If an environmental investigation by or on behalf of Buyer discloses the existence of petroleum product or other pollutant, contaminant or other hazardous substance on the Property, Seller may terminate this Purchase Agreement. 4 415146v4 CBR RC125-330 6. Real Estate Taxes and Special Assessments. Real estate taxes payable in the year of closing will be pro-rated between Buyer and Seller to the Closing Date. Seller shall pay all real estate taxes payable in previous years, the entire unpaid balance of special assessments, and all installments of special assessments levied and pending, including special assessments installments payable after the year of closing. Seller also agrees to pay all assessments related to service charges furnished to the Property prior to the Closing Date (e.g., delinquent water or sewer bills, removed or diseased trees), including those charges levied,pending, or certified to taxes payable in the year of closing. If closing occurs prior to the date the amount of real estate taxes due in the year of closing are available from Hennepin County, the current year's taxes will be pro-rated based on the amount due in the prior year. 7. Closing Date. The Closing Date will be on or before February 15, 2013. Delivery of all papers and the closing shall be made at the offices of Buyer, 6700 Portland Avenue South, Richfield, Minnesota 55423, or at such other location as is mutually agreed upon by the parties. All deliveries and notices to Buyer shall be made to the above address and marked to the attention of Housing Specialist. 8. Possession/Utilities/Removal of Property/Escrow. (a) Possession. The Seller agrees to deliver possession not later than the Closing Date. (b) Utilities. City water and sewer charges, electricity and natural gas charges, fuel oil and liquid petroleum gas shall be pro-rated between the parties as of the Closing Date. Seller shall arrange for final readings as of the Closing Date. (c) Personal Property. The Seller agrees to remove all debris and all personal property not included herein from the Property before the possession date. Personal property not so removed shall be deemed forfeited to and shall become the property of Buyer. The Buyer may inspect the Property immediately prior to closing and deduct from the purchase price payable at closing an amount reasonably necessary to pay for the cost of removal of any debris or personal property then remaining on the Property. The provisions of this paragraph shall not merge with the deed and shall survive closing on the property. (d) Escrow. Seller agrees that, at closing, Buyer may retain One Hundred Dollars ($100.00) from the purchase price for the Property as an Escrow for payment of utility charges. The retained amount, less deductions provided for this in paragraph 8, will be delivered to Seller no later than 60 days following the Closing Date or delivery of possession, whichever is later. Said funds shall be held by Kennedy & Graven, Chartered, as Escrow Agent, pursuant to the terms of the Escrow Agreement attached here as Exhibit C. (e) Walk Through. Seller agrees to accompany Buyer on a walk-through of the Property at least three(3)business days prior to Closing Date. (f) Amounts Due. The Buyer's ability to deduct amounts due under this paragraph from 5 415146v4 CBR RC125-330 g the retained escrow is not exclusive but is in addition to Buyer's rights at law and equity to collect such amounts from Seller.The Seller is responsible for the amounts due under this paragraph even if: (i)Buyer neglects to deduct the amount from escrow; or (ii) the escrowed amount is insufficient to pay all amounts due under this paragraph 8. 9. Seller Warranties. (a) Sewer and Water. Seller warrants that the Property is connected to City sewer and City water. (b) Mechanics' Liens. Seller warrants that,prior to the closing, Seller shall pay in full all amounts due for labor, materials, machinery, fixtures or tools furnished within the 120 days immediately preceding the closing in connection with construction, alteration or repair of any structure upon or improvement to the Property. (c) Notices. Seller warrants that it has not received any notice from any governmental authority as to violation of any law, ordinance or regulation in connection with the Property. (d) Tenants. Seller warrants that the Property is not now occupied by tenants and was not occupied by tenants at the time Seller first received Buyer's written offer to purchase the Property. (e) Broker Commission. Each party represents to the other that it has not utilized the services of any real estate broker or agent in connection with this Agreement or the transaction contemplated by this Agreement. Each party agrees to indemnify, defend, and hold harmless the other party against and in respect of any such obligation and liability based in any way upon agreements, arrangements, or understandings made or claimed to have been made by the party with any third person. (f) Structures. The Seller warrants that the buildings, if any, are entirely within the boundary lines of the Property. The parties acknowledge that the Property is being sold in "as is" condition relating to the structural, operational, and mechanical systems. 10. Closing Costs/Recording Fees/Deed Tax. The Buyer will pay: (a)the closing fees charged by the title insurance or other closing agent, if any, utilized to close the transaction contemplated by this Agreement; (b) fees for title evidence obtained by Buyer; and (c) the recording fee for the deed transferring title to Buyer. Seller will pay all other fees normally paid by sellers, including (a) any transfer taxes, recording fees and Well Disclosure fees required to enable Buyer to record its deed from Seller under this Agreement, and (b) fees and charges related to the filing of any instrument required to make title marketable. Each party shall pay its own attorney fees. 11. Inspections. From the date of this Agreement to the Closing Date, Buyer, its employees and agents, shall be entitled to enter upon the Property to conduct such surveying, inspections, investigations, soil borings and testing, and drilling, monitoring, sampling and 6 415146v4 CBR RC125-330 testing of groundwater monitoring wells, as Buyer shall elect; provided,that Seller is given at least 24 hours' notice. 12. Risk of Loss. It there is any loss or damage to the Property between the date hereof and the Closing Date, for any reason including fire,vandalism, flood, earthquake or act of God, the risk of loss shall be on Seller. If the Property is destroyed or substantially damaged before the closing date, this Agreement shall become null and void, at Buyer's option. At the request of Buyer, Seller agrees to sign a cancellation of Agreement. 13. Default/Remedies. If Buyer defaults in any of the covenants herein, Seller may terminate this Agreement, and on such termination all payments made hereunder shall be retained by Seller as liquidated damages, time being of the essence. This provision shall not deprive either party of the right to enforce specific performance of this Agreement, provided this Agreement has not terminated and action to enforce specific performance is commenced within six months after such right of action arises. In the event Buyer defaults in its performance of the terms of this Agreement and Notice of Cancellation is served upon Buyer pursuant to Minn. Stat. Section 559.21, the termination period shall be thirty (30) days as permitted by Minn. Stat., Section 559.21, Subd. 4. 14. Notice. Any notice, demand, request or other communication which may or shall be given or served by the parties, shall be deemed to have been given or served on the date the same is personally served upon one of the following indicated recipients for notices or is deposited in the United States Mail, registered or certified, return receipt requested, postage prepaid and addressed as follows: SELLER: Karen Johnson Conservator of the Estate of John Priglmeier P.O. Box 23335 Richfield, MN 55423 BUYER: Housing and Redevelopment Authority of the City of Richfield Attn: Housing Specialist 6700 Portland Avenue South Richfield, MN 55423 AGENT: Kennedy& Graven, Chartered ATTN: Julie Eddington and Catherine B. Rocklitz 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis,MN 55402 15. Entire Agreement. This Agreement, Exhibits, and other amendments signed by the parties, shall constitute the entire Agreement between Seller and Buyer and supersedes any other written or oral agreements between the parties relating to the Property: This Agreement 7 415146v4 CBR RC125-330 Io can be modified only in a writing properly signed on behalf of Seller and Buyer. 16. Survival. Notwithstanding any other provisions of law or court decision to the contrary,the provisions of this Agreement shall survive closing. 8 415146v4 CBR RC 125-330 IN WITNESS WHEREOF,the undersigned have executed this Agreement on the date and year above. Buyer: Seller: Housing and Redevelopment Authority of the City of Richfield Karen Johnson, as Conservator of the Estate of By: John J. Priglmeier, Protected Person Its Chair And by: Its Executive Director 9 415146v4 CBR RC 125-330 5E— I19- EXHIBIT A Legal Description of Property Lots Five (5) and Six (6), Block Eleven(11),Nokomis Gardens Rearrangement of Blocks 7, 11 and 12, Girard Parkview, according to the recorded plat thereof filed in the office of the Register of Deeds of Hennepin County A-1 315418v3 CBR RC125-41 415146v3 CBR RC125-330 AGENDA ITEM#: SF REPORT#: 8 IMAM STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2013 REPORT PREPARED BY: LYNNETTE CHAMBERS,MULTIFAMILY HOUSING COORDINATOR NAME,TITLE REPORT PRESENTER: KAREN BARTON,ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: , /. ' SIGN RE /7 REVIEWED BY EXECUTIVE DIRECTOR: p it ITEM FOR HRA CONSIDERATION: Consideration regarding the Housing and Redevelopment Authority's revised Administrative Plan for Richfield's Section 8 Housing Assistance Program. I. RECOMMENDED ACTION: By Motion: Approve the Housing and Redevelopment Authority's revised Administrative Plan for Richfield's Section 8 Housing Assistance Program. II. BACKGROUND The Richfield Housing and Redevelopment Authority (HRA) administers the Section 8 program in accordance with an Administrative Plan that establishes local policies and procedures based on Department of Housing and Urban Development (HUD) requirements. This 494-page plan states the regulatory requirements of administering the Section 8 Housing Choice Voucher Program and also clarified Richfield HRA's policy on matters for which the HRA has the discretion to establish local policies. Families may use the portability feature of their Housing Choice Voucher to move from one jurisdiction to another and each jurisdiction has their own Administrative Plan. Some of the new policy changes that the Richfield HRA would like to adopt more closely resemble the policies of the neighboring jurisdictions (namely 012313 Section 8 Admin Plan Minneapolis and Bloomington). These changes will allow families to have a smoother transition when they move in and out of Richfield. Attached is a Summary highlighting the major points of the revised Administrative Plan (Attachment A). A copy of the complete plan is available upon request. The Richfield Housing Assistance Program (HAP) must administer their Section 8 Program in accordance with the Administrative Plan. III. BASIS OF RECOMMENDATION A. POLICY • The HRA must formally adopt the Administrative Plan. B. CRITICAL TIMING ISSUES • The Plan incorporates new changes in regulations mandated by HUD. • Failure to approve the Administrative plan will result in staff administering the program with an Administrative Plan that does not reflect recent regulatory changes. C. FINANCIAL • A current and accurate Administrative Plan incorporating HUD regulations is a requirement. D. LEGAL • N/. IV. ALTERNATIVE RECOMMENDATIONS) V. ATTACHMENTS • Summary highlighting points of revised Administrative Plan (Attachment A) VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A Attachment A Verification of Family Information - HUD authorizes HRA's to use six methods to verify family information. Richfield HRA has further prioritized these verifications. In order of priority, the forms of verification that the HRA will use are: Up-front Income Verification (UIV) using HUD's Enterprise Income Verification (EIV) system; Up-front Income Verification (UIV) using a non-HUD system; Written Third-Party Verification (may be provided by applicant or participant); Written Third-party Verification Form; Oral Third-party Verification; and Self-Certification Subsidy Standards — Based on Family Size, Richfield HRA determines the families voucher size. Currently, Richfield HRA will increase the size of the voucher when the family size increases. The new Administrative Plan will allow the family size only to increase immediately if the new family member is a child that comes into the family by birth, adoption or court awarded custody. If a new family member comes into the household in any other manner the voucher size will not increase until that family member has been in the household for a period of 12 months. Interim Changes —When a family income changes (over $200 a month), Richfield HRA conducts an interim rent change. Currently, families are given a 30 day notice of a rent increase after they have properly reported an increase in income. The family has 10 days to report any income changes. When a family has a rent decrease (their income deceases) the rent change is effective the first of the month following the reported change in income. The new policy will still allow for a 30 day notice of a rent increase and will also apply this 30 day notice to a rent decrease. The 30 day notice of a rent decrease will allow staff the ability to collect all the necessary verification that documents the families decrease income. Housing Quality Standards (HQS) — Housing Quality Standards are national standards that rental units must pass in order for the unit to qualify for rental assistance. Richfield HRA has some more stringent standards than established by HUD; these must be outlined in the Administrative Plan. The following standard is one we have been enforcing and needs to be present in our Administrative Plan. If present, outlets within six feet of kitchen sink and in bathroom must be GFI (exception, see below). If outlet is in light fixture above sink in bathroom or kitchen it should be GFI, or capped with safety cap or disconnected. AGENDA ITEM#: 5G REPORT#: 9 MAIN STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2013 REPORT PREPARED BY: LYNNETTE CHAMBERS,MULTIFAMILY HOUSING COORDINATOR NAME,TITLE REPORT PRESENTER: KAREN BARTON,ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: : � ��uRE • REVIEWED BY EXECUTIVE DIRECTOR: , IJ '� i► 11 _I ITEM FOR HRA CONSIDERATION: Consideration regarding a proposed adjustment of payment standard for the Section 8 Rent Assistance program. I. RECOMMENDED ACTION: By Motion: Approve the attached adjustment of payment standard for the Section 8 Rent Assistance program. II. BACKGROUND The Section 8 program is administered in accordance with the Housing and Redevelopment Authority's (HRA) Administrative Plan. According to the plan and the Department of Housing and Urban Redevelopment (HUD) regulation, the voucher program provides financial assistance based on unit bedroom size. Clients pay a minimum of 30 percent of their income towards rent. On an annual basis HUD establishes a Fair Market Rent (FMR). The allowable FMR is expressed as a specific percentile point within the rent distribution of standard-quality rental housing units. Individual HRA's are allowed to select a payment standard within 90% to 110% of HUD's FMR. The selection of the payment standard should assure that a sufficient supply of rental housing is available to program participants. The Richfield HRA conducts a rental survey on an annual basis to help in determining an appropriate 012313 Section 8 payment standard. Currently, the survey results indicate that the Richfield HRA should adopt a payment standard that is 100% of the FMR established by HUD. The new payment standards are effective February 1, 2013. The attached table (Attachment A) clarifies the changes being proposed. The last adjustment made by the HRA was in October 2007. III. BASIS OF RECOMMENDATION A. POLICY • The HRA must approve increases in the payment standard for the Section 8 program. • Section 8 participants will be able to choose from a larger selection of affordable housing units and may receive some immediate rent relief on a case by case basis. • HUD provides sufficient federal assistance to cover these adjustments in the payment standards and has approved the increase. • Without an increase in the payment standard many Section 8 participants will be unable to find housing and keep up with changing rents. • Potential changes in Federal law impact the financial resources available to the program if the HRA does not remain current with the FMR. B. CRITICAL TIMING ISSUES • N/A C. FINANCIAL • An increase in the payment standard will decrease the rent burden for Section 8 participants. • HUD provides sufficient funding to cover the increase. D. LEGAL • The contract between the HRA and HUD provides for FMR adjustments in accordance with federal regulations. IV. ALTERNATIVE RECOMMENDATIONS) • Do not change the payment standard at this time; however, HUD guidelines suggest an adjustment is needed. V. ATTACHMENTS • Attachment A, proposed modifications to voucher program. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A 5 G - 1 Attachment A Current Payment Standard 0 BDR 1 BDR 2 BDR 381211 4 1_ DR BDR 581 713 912 1220 1370 1575 Payment Standard Proposed - Effective February 1, 2013 O BDR 1 BDR Z BDR 3 BDR 4 BDR 5 BDR 592 736 920 1296 1529 1810 AGENDA ITEM#: 5H REPORT#: 10 =goal STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2013 REPORT PREPARED BY: KATE AITCHISON/JULIE URBAN,HOUSING SPECIALISTS NAME,TITLE REPORT PRESENTER: KAREN BARTON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: J ed'Arg■ 4 1 TURF REVIEWED BY EXECUTIVE DIRECTOR: / _ ITEM FOR HRA CONSIDERATION: Consideration of a Consulting Agreement with the Center for Energy and Environment for the Residential Energy Program. I. RECOMMENDED ACTION: By Motion: Authorize the attached Consulting Agreement with the Center for Energy and Environment to provide professional services for the Residential Energy Program. II. BACKGROUND The Center for Energy and Environment (CEE) works with the utility companies to offer a Residential Energy Program. The goal of the program is to reduce energy use and environmental impact by making it as easy as possible for homeowners to make energy-efficient improvements to their homes. The program was first offered in Minneapolis and a few pilot cities across the state. The utility companies are now expanding participation in the program to other cities, including Richfield. The program includes the following components: ° Home energy visits. 01232013 CEE Consulting Contract.doc o Direct installation of energy-saving products (e.g. programmable thermostats, weather stripping, low-flow showerheads, faucet aerators). o Optional workshops. o Identification of major efficiency upgrades. o Follow-up assistance to homeowners to complete and finance major efficiency upgrades. o Training and quality assurance for insulation and air sealing contractors. The cost of the services is between $400-$500. Homeowners would pay $50 for the full audit, with the Housing and Redevelopment Authority (HRA) paying $70, and the utility companies cover the remaining cost. A scaled-down version is also available to renters (or homeowners upon request) at a slightly lower cost ($30 for homeowner; $40 for HRA). In addition, CEE will assist HRA staff in marketing the program. CEE will start the program in Richfield by encouraging policymakers and other community leaders to participate in the program and provide feedback. This process will begin in February. The program will be marketed to the broader community in the spring. In the 2013 Budget, the HRA has authorized $25,000 to write-down the cost of the audits. Additionally, $5,000 has been budgeted to offer incentive rebates to homeowners who proceed with larger-scale insulation upgrades. III. BASIS OF RECOMMENDATION • A. POLICY • The program furthers the following goals of the City's Comprehensive Plan: o Support the rehabilitation and upgrading of the existing housing stock. o Support ongoing maintenance and upkeep of residential properties. o Promote the maintenance of affordable housing in the City. • The HRA goals call for the development of a pilot program to encourage energy efficiency in home improvements. B. CRITICAL TIMING ISSUES • CEE will start the program in Richfield in February with policy makers and community leaders. The program will be marketed to the broader community in the spring. • The program commitment is for three years. C. FINANCIAL • The cost of participation for 2013 is $25,000, plus an additional $5,000 for incentive rebates. • Funds are allocated for the program in the 2013 HRA Budget. • $20,000 would be budgeted in 2014 and 2015 for the program. D. LEGAL • The Consulting Agreement has been reviewed by legal counsel. IV. ALTERNATIVE RECOMMENDATION(S) • Do not approve the Consulting Agreement with CEE. V. ATTACHMENTS • Copy of the Consulting Agreement VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A MAIL C.:ONSUt.'flNt„ AGREEMENT WITH WORK ORDERS This CONSULTING AGREEMENT ("Agreement") is made by and between the Housing and Redevelopment Authority in and for the City of Richfield,with offices at 6/00 Portland Ave, Richfield, I'flN 55423 ("Authority"), and CENTER FOR ENERGY AND ENVIRONMENT,with offices at 212 North 3rd Avenue, Suite 560, Minneapolis, Minnesota 55401 ("CEE"). RECITALS A. AUTHORITY has a need for certain professional services and desires to retain CEF to provide said services, all subject to the terms and conditions contained in this Agreement. B. CEE is qualified to provide the desired professional services and desires to provide said services for AUTHORITY, all subject to the terms and conditions contained in this Agreement. NOW, THEREFORE,in consideration of the foregoing and the mutual promises contained in this Agreement, the parties agree as follows: 1. Services/Scope of Work& Compensation CEE shall provide professional services under this Agreement pursuant to "ATTACHMENT A: Work Order for Delivering the Richfield Residential Energy Program," and any subsequently approved work orders to this contract. 2. Compensation AUTHORITY shall compensate CEE for the Services as follows: 2.1 Compensation under this agreement shall not exceed the amount authorized under approved work orders. 2.2 CEL shall submit to AUTHORITY, on o regular basis, invoices for services performed under this Agreement, including documentation of services rendered. AUTHORITY shall pay each properly submitted invoice within thirty (30) days after submission of the invoice by CEE. 3. AUTHORITY's Obligations 3.1 AUTHORITY shall make reasonable efforts to respond promptly to requests from CEE for information and approvals regarding the services to be provided under this Agreement. 3.2 If requested by CEE, AUTHORITY shall make reasonable efforts to obtain information and or permission for access from AUTHORITY's clients which may be necessary for CEE to provide the services under this Agreement. 3.3 AUTHORITY shall be responsible for providing assistance with implementing the residential program, as detailed in approved work order(s). CONTRACT between HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD and CENTER FOR ENERGY AND ENVIRONMENT Page I CEE Doc#1544 4. CEE's Obligations 4.1 CEE shall use its besi efforts to provide services under this Agreement in a professional manner consistent with the care and skill used by reputable members of CEE's profession. 4.2 CEE, and all of its employees or agents, shall comply with all statutes, ordinances,rules, regulations and other laws applicable to the provision of services under this Agreement. 4.3 CEE shall secure all permits and licenses required for performance of the services under this Agreement. 4.4 CFE shall not engage in discriminatory employment practices against any employee or applicant for employment and shall in all respects comply with all federal, state and local laws,regulations and orders, including without limitation, Chap ler 363 of the Minnesota Statutes, as amended from time to time. Failure to comply with the provisions hereof shall be deemed a material default under this Agreement. 5. Term and Termination 5.1 Unless earlier terminated as provided in the following paragraphs, this Agreement shall become effective on January 24, 2013,and continue until terminated by either party, or until all approved work orders are complete. 5.2 This Agreement may be terminated by either party, for any reason.or no reason, immediately upon written notice to the other party. In the event this Agreement is terminated by CEE prior to the expiration of the term set forth in paragraph 5.1, CEE shall provide AUTHORITY with such information as AUTHORITY may request regarding the status of any ongoing project. 5.3 Any termination of this Agreement shall not release either party from their respective obligations under section 7 of this Agreement. 6. Insurance 6.1 During the term of this Agreement, CEE will obtain and maintain insurance in the amounts listed below: General Liability $2,000,000 Aggregate Limit Automobile Liability $1,000,000 Combined Single Limit Excess Liability $1,000,000 Aggregate Limit Professional Liability $1,000,000 Aggregate Limit Workers Compensation Statutory Limit 7. Confidentiality Unless otherwise agreed by AUTHORITY in writing, CEE shall maintain in confidence and not disclose to any third party any information obtained regarding AUTHORITY CONTRACT between HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD and CENTER FOR ENERGY AND ENVIRONMENT Page 2 CEE Doc#1544 51-1 °3 and/or any of AUTHORITY's clients for which CEE is providing services; provided, however, that this obligation to maintain confidentiality shall not apply to: a) Information in the public don rain at the lime of disclosure; b) Information which becomes part of the public domain after disclosure through no fault of CEE; or c) Information which CEE can demonstrate was known by it prior to the date of this Agreement. Notwithstanding the foregoing,CEE shall be entitled to disclose the documents or client information covered by this paragraph to governmental authorities to the extent CEE reasonably believes ii has a legal obligation to make such disclosures and to the extent CEE reasonably deems to be necessary;provided, however,that if CEE believes that any such disclosure is required by law, it shall provide advance notice to AUTHORITY to provide AUTHORITY with a reasonable opportunity to attempt to obtain an injunction or other protective order preventing such disclosure. 8. Subcontractors CEE agrees to bind every subcontractor by the terms, conditions and provisions set forth in the contract that are applicable to the subcontractor's work, unless specifically agreed otherwise in writing by the AUTHORITY. CEE agrees to pay every subcontractor within 10 days of receipt of payment from the AUTHORITY pursuant to Minn.Stat. 471.42.5. 9. Relationship of Parties CEE will provide services as an independent contractor under this Agreement. Neither CEE, nor any of its employees or agents,shall be considered employees of AUTHORITY for any purpose, and neither shall CEE be eligible for any compensation or benefits which AUTHORITY may provide to its employees from time to time. CEE shall be solely responsible for all employment and other taxes applicable to providing services hereunder, and AUTHORITY wit not withhold any taxes or contributions from the compensation payable to CEE under this Agreement. 10. Notices All notices, requests, demands and other communications required to be given in writing under this Agreement shall be given to the olher party in person or by mail as provided in this section. If delivered personally, notice shall be deemed to have been duly given on the date of delivery. If delivered by mail, such notice shall be sent via first class U.S. mail, postage prepaid, to the address set forth at the beginning of this Agreement or such other address as a party may otherwise request by written notice, and notice shall be deemed duly given three (3) business days after mailing. 11. Assignment This Agreement shall be binding upon and inure to the benefit of the parties and their respective heirs, successors and assigns; provided, however, that neither party shall assign or transfer in any manner, this Agreement or any portion hereof without the CONTRACT between HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD and CENTER FOR ENERGY AND ENVIRONMENT Page 3 CEE Doc#1544 prior written consent of the other party, and any at iempl to assign or transfer without prior written consent shall be void and at no effect 1 0overruirl j tow This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 13. Miscellaneous 13.1 Headings and captions used in this Agreement are for convenience only and shall not affect the meaning of this Agreement. 13.2 This Agreement contains the entire agreement of the parties and supersedes all prior agreements, discussions and representations, written or oral, concerning the subject matter hereof. 13.3 No waiver by AUTHORITY of any term or condition of this Agreement or any document referred to herein shall,whether by conduct or otherwise, be construed as a waiver or release of any other term or condition of this Agreement. 13.4 This Agreement may only be amended in a written agreement signed by both parties. 13.5 The rights and benefits under this Agreement shall inure solely to the benefit of AUTHORITY and CEE, and this Agreement shall not be construed to give any rights, benefits or causes of action to any third party. 13.6 The invalidity or partial invalidity of any provision of this Agreement shall not invalidate the remaining provisions, and the remainder shall be construed as of the invalidated portion shall have never been a part of this Agreement. 13.7 This Agreement may be signed in any number of counterparts, each of which shall be deemed an original and one and the same instrument. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above. Housing and Redevelopment Authority in and for the City of Richfield (AUTHORITY) By— Its: Chair Date: CONTRACT between HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD and CENTER FOR ENERGY AND ENVIRONMENT Page 4 CEE Doc#1544 5_ r Housing and Redevelopment Auihoriiy in and for the Ciiy of Richfield (AUTHORITY) By: Its. 'Executive, Director Date: Center for Energy and Environment (CEE) •By. ` _� __ Ifs: Corporate Secretary Jennifer Amendt Date: /< r ) Tax ID # 41-1647799 T:\FINANCF\Projects\Richfield HRA\Richfield HRA Master Contract CEE Doc 1544.doc January 14,2013 CONTRACT between HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD and CENTER FOR ENERGY AND ENVIRONMENT Page 5 CEE Doc#1544 ATTACHMENT A-: 'Work Order for Delivering a Comprehensive Residential Energy Efficiency Programa in the City of Richfield The following work order, including the below scope of work, is for the Center for Energy and Environment(CEE) to deliver a comprehensive residential energy efficiency program to the residents of Richfield,in partnership with the Housing and Redevelopment Authority in and for the City of Richfield(AUTHORITY)and with the support of the City of Richfield(CITY). In entering into this agreement,AUTHORITY acknowledges that their participation, as outlined under"AUTHORITY Tasks"below,is critical to the success of the program,and agrees to work towards completing these activities in good faith. This work order is incorporated as part of the approved Master Consulting Agreement between AUTHORITY and CEE,identified as CEE Doc#1544. PROGRAM SCOPE The purpose of the comprehensive residential energy efficiency program described by this work order is to provide an easy and comprehensive pathway for Richfield residents to save energy through major energy upgrades,as well as through low-cost and no-cost approaches. The program has 4 major steps: I)community engagement and marketing;2)educational workshops/presentations;2)Home Energy Squad visits; 3)follow-up services as a path to major energy upgrades;and 4)contractor coordination. AUTHORITY acknowledges that CEE has agreements with electric and gas utilities that provide a major source of cost-share for the program by funding most of the cost of the Home Energy Squad visits as well as prescribing other aspects of program delivery,and that should these agreements change or be terminated, it may affect CEE's ability to complete this work scope. CEE Tasks: 1. Utilize community engagement techniques and traditional inarlreting to recruit participants to workshops. CEE will work with AUTHORITY to develop a marketing plan,with an initial goal of recruiting 500 participants. CEE will develop all marketing materials,as well as a supporting program website. CEE will be primarily responsible for executing the marketing plan, in partnership with AUTHORITY. 2. Conduct Home Energy Squad Visits. CEE will conduct Home Energy Squad visits to help homeowners identify and implement energy savings opportunities in their homes. Two types of visits will be offered: llome Energy Squad with diagnostics and Basic Home Energy Squad Visits. Both visits include the direct install of energy-saving materials where possible,including high-efficiency showerheads,weather- stripping,programmable thermostats and compact florescent light bulbs. The diagnostics version also includes a blower door test to check fm air leaks, visual inspection of insulation levels, furnace and hot water heater safety check,and report to the homeowner on recommended energy upgrades. The Basic version will not generally be marketed, but is available primarily for renters,who would not pay for major upgrades,and thus do not need the diagnostic services. The AUTHORITY and Richfield resident co-pays for these visit types is listed in the table below: Type of Home Energy Visit AUTHORITY Richfield payment resident co-pay Home Energy Squad w.diagnostics $70 $50 Basic Home Energy Squad (for renters) $40 $30 The co-pays and exact packages of services are subject to change based on programmatic considerations, including its agreement with utilities and other factors which are outside the bounds of this agreement. CEE will notify the AUTHORITY prior to any changes taking effect. 3. Follow-up services. CEE will follow-up with home visit customers that were recommended major upgrades(air sealing, insulation and furnace replacement)through email or by phone,and provide contact WORK ORDER between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD and CENTER FOR ENERGY AND ENVIRONMENT Page 1 CEE Doc#1595 H- 1 information for incoming calls from participants who have follow-up questions after the home visit. CEE will offer financing options for those customers who need financing,and help customers navigate rebate forms and the contractor selection process. 4. Contractor coordination. CEE will provide a quality assurance program for insulation and air sealing contractors,to ensure high-quality work for program participants,and make it easy for program participants to take the identified next steps. A list of contractors participating in this quality assurance program will be given at the home visit to Richfield residents(except for the"Basic"version of the home visit). All contractors on the list must first agree to meet CEE's technical standards for installation,meet training and certification requirements identified by CEE,agree to have work checked upon request by CEE,and fix any deficiencies identified by CEE. AUTHORITY/CITY Tasks 1. ,4ssist and coordinate with CEE on marketing activities. This includes working with CEE on press releases, articles in CITY newsletters,water bill inserts,promoting program on the CITY website,CITY email lists,assistance in coordinating with neighborhood and other CiTY leaders and assistance in reserving workshop and event space as needed. 2. Provide rebates for homeowners that complete home energy visits. The AUTHORITY intends to offer rebates,to complement available utility rebates,for participants that complete insulation upgrades. PAYMENT CEE shall submit regular invoices to AUTHORITY for activity performed under this agreement. AUTHORITY will reimburse CEE$40 per Basic Home Energy Squad visit and$70 per Home Energy Squad Plus visit completed in the City of Richfield,not to exceed$20,000 per year without further authorization from the AUTHORITY. Invoices will be emailed to Julie Urban(612-861-9778)at jurban@cityofrichfield.org. TIMELINE The project shall run through December 31,2015,and may be extended upon mutual agreement by the parties. In witness thereof,the parties have executed this work order as of the date written below. HOUSING AND REDEVELOPMENT CENTER FOR ENERGY AND ENVIRONMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By By: i Chair Person Jennifer Amendt-Corporate Secretary Date: Date: = By: TAX iD 41-1647799 Executive Director Date: WORK ORDER between the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD and CENTER FOR ENERGY AND ENVIRONMENT Page 2 CEE Doc#1545 AGENDA 1TEM#: 5I REPORT#: 11 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2013 REPORT PREPARED BY: KATE AITCHISON/JULIE URBAN,HOUSING SPECIALISTS NAME,TITLE REPORT PRESENTER: KAREN BARTON,ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: SIGNA A .j'/ REVIEWED BY EXECUTIVE DIRECTOR: a-- '*` ITEM FOR HRA CONSIDERATION: Consideration of a contract with S.R. Stevens Excavating, Inc. for demolition at 6310 Irving Avenue and 7225 1st Avenue. I. RECOMMENDED ACTION: By Motion: Approve the attached contract with S.R. Stevens Excavating, Inc. for demolition at 6310 Irving Avenue and 7225 1st Avenue. II. BACKGROUND In 2012 the Housing and Redevelopment Authority (HRA) acquired properties at 6310 Irving Avenue and 7225 1st Avenue. The HRA plans to demolish the existing substandard structures and make the lots available for new home construction through the New Home and Richfield Rediscovered Programs. The houses are currently vacant. To reduce potential risks, holding costs, and negative impacts to the surrounding neighborhood, the houses should be demolished as soon as possible HRA staff solicited bids for demolition of the houses and garages from eight companies. Four companies responded to the request submitting the following estimates: 01232013 Demolition Contract.doc • S.R. Stevens, Inc. $14,540 • All Metro $17,000 • Frattalone $20,977 • Kamish Excavating $21,974 Staff recommends that the HRA approve a contract with S.R. Stevens Excavating, Inc. for the demolition work, to be substantially completed within 45 days following execution of the contract. III. BASIS OF RECOMMENDATION A. POLICY • The HRA has demonstrated success through its Richfield Rediscovered and New Home Programs in removing obsolete housing in poor condition and developing new housing that meets the needs of today's households. • Historically, the HRA has demolished existing homes prior to selling the properties. B. CRITICAL TIMING ISSUES • The houses are currently vacant. To reduce potential risks, holding costs, and negative impacts to the surrounding neighborhood, the houses should be demolished as soon as possible. • The houses will be made available to the Fire Department for training. Demolition should begin shortly after the training exercises are complete. • If the contract is approved, demolition will be completed by March 15, 2013. C. FINANCIAL • S.R. Stevens, Inc. submitted the lowest bid at $14,540. • There are funds available for the demolition in the Housing and Redevelopment Fund. D. LEGAL • Legal counsel drafted the Contract for Demolition. IV. ALTERNATIVE RECOMMENDATION(S) • Do not approve the Contract for Demolition. • Award the contract to another bidder. V. ATTACHMENTS • Contract for Demolition. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A 5 - 1 CONTRACT FOR DEMOLITION OF 7225 1st Avenue South and 6310 Irving Avenue South THIS CONTRACT is made and entered into this day of , 2013, by and between S.R. Stevens Excavating, Inc. (the "Contractor") and the Housing and Redevelopment Authority in and for the City of Richfield, State of Minnesota (the "HRA") (collectively, the "Parties"), for the demolition of buildings located at 7225 1st Avenue South and 6310 Irving Avenue South, Richfield, MN 55423. RECITALS WHEREAS, the HRA requires the demolition of buildings at 7225 1st Avenue South and 6310 Irving Avenue South(the "Work"). WHEREAS,the HRA has awarded the Work to the Contractor; WHEREAS, the Contractor represents that it has the necessary personnel, experience, competence, and legal right to perform the Work; NOW, THEREFORE, in consideration of the mutual obligations of the Parties hereto, each of them does hereby covenant and agree as follows: Section 1. Definitions "Asbestos" means any material containing more than one percent asbestos, which is friable, releasing asbestos fibers into the air, above current levels established by the United States Occupational Safety and Health Administration. "Contract" or "Agreement" means this agreement between the HRA and Contractor for the performance of the Work, together with all exhibits, amendments, or modifications to the Contract. "Destructive Report" means a hazardous materials abatement inventory prepared to assist in establishing the scope of the Work. "Final Completion" means all items of the Work, "punch list items" and site work are completed and Contractor is eligible for Final Payment. "Hazardous Materials" means asbestos, PCBs, petroleum hazardous waste, radioactive material, or any other hazardous materials or hazardous wastes within the meaning of City, State of Minnesota, or Federal definitions of hazardous materials or hazardous waste. "Owner" means the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. . 314396v2 MTN RC125-I 1 5T —� "Property" means 6812 14th Avenue South, 6438 Bloomington Avenue South, and 6315 16th Avenue South, Richfield, MN 55423. "Substantial Completion" means the time at which the HRA determines that the Work has progressed to a point where it is sufficiently complete, leaving only minor "punch list" and close out items and other minor site work required to be completed for full payment of the contract price. "Work" means the entire completed demolition, and all other activities to be performed by Contractor on the Property as provided for in the Contract. Section 2. General Requirements 2.1. Rights of the HRA. The HRA and the City reserve the right to reject any or all proposals or parts of proposals, to accept part or all of proposals on the basis of considerations other than lowest cost, and to create a project of lesser or greater expense and reimbursement than described in this Contract. The HRA also reserves the right to cancel the Contract without penalty, if circumstances arise which prevent the HRA from completing the project. In the event of any conflict between the General Conditions and this Contract, this Contract shall control. 2.2. Interest of Members of City or 1-IRA. The Contractor agrees that no member of the governing body, officer, employee, or agent of the City or the HRA shall have any interest, financial or otherwise, direct or indirect, in the Contract. 2.3. Equal Opportunity Statement. Contractor agrees to comply with the provisions of all applicable federal, state, and City of Richfield statutes, ordinances, and regulations pertaining to civil rights and nondiscrimination including without limitation Minnesota Statutes, Section 181.59 as amended, incorporated herein by reference. .2.4. Transfer of Interest. The Contractor shall not assign any interest in the Contract, and shall not transfer any interest in the same either by assignment or novation, without the prior written approval of the HRA, provided, however, that claims for money due or to income due to the Contractor may be assigned to a bank, trust company, or other financial institution, or to a Trustee in Bankruptcy without such approval. Notice of any such assignment or transfer shall be furnished to the HRA. Notwithstanding the foregoing, Contractor shall be entitled to use subcontractors to perform the Work. 2.5. Independent Contractor. Nothing contained in this agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Contractor shall at all times remain an independent contractor with respect to the services to be performed under this agreement. The HRA shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers Compensation Insurance as the Contractor is an independent contractor. 314396v2 MTN RC125-1 2 2.6. Hold Harmless. The Contractor agrees to defend, indemnify and hold harmless the HRA and the City , its officers and employees, from any liabilities, claims, damages, costs,judgments, and expenses, including attorney's fees, resulting directly or indirectly from an act or omission of the contractor, its employees, its agents, or employees of subcontractors, in the performance of the services provided by this contract or by reason of the failure of the contractor to fully perform, in any respect, all of its obligations under this Contract. 2.7. Accounting Standards. The Contractor agrees to maintain the necessary source documentation and enforce sufficient internal controls as dictated by normally accepted accounting practices to properly account for expenses incurred under this contract. 2.8. Retention of Records. The Contractor shall retain all records pertinent to expenditures incurred under this Contract for a period of three years after the resolution of all audit findings. Records for non-expendable property acquired with funds under this contract shall be retained for three years after final disposition of such property. 2.9. Disclosure. The Contractor agrees to comply with the Minnesota Government Data Practices Act, Minnesota Statutes, Chapter 13, and all other applicable state and federal laws relating to data privacy or confidentiality, as those laws may be amended. The Contractor shall immediately report to the HRA any requests from third parties for information relating to this agreement. All data created, collected, received, stored, used, maintained, or disseminated by the Contractor in performing its obligations is subject to the requirements of the Act, and the Contractor must comply with those requirements as if it were a government entity. The HRA agrees to promptly respond to inquiries from the Contractor concerning data requests. The Contractor agrees to hold the City and the IIRA, its officers, department heads and employees harmless from any claims resulting from the Contractor's failure to disclose data maintained by the Contractor and authorized for release by the IIRA, and from Contractor's unlawful disclosure or use of data protected under state and federal laws. Section 3. Contract Price 3.1. Upon compliance with all the requirements of this Contract, Contractor shall be paid the Contract Price of$14,540, pursuant to Section 28 of this Contract. Section 4. Project Schedule 4.1. Contractor shall commence the Work after contract execution and Substantial Completion of the Work shall be achieved no later than March 15, 2013, 45 days thereafter. Section 5. Local Permit Requirements and Related Submittals 5.1. Contractor shall obtain permits required by the City of Richfield, including a plumbing permit (for water & sanitary sewer disconnects) and a demolition permit. 314396v2 MTN RC125-I 3 Questions about these permits, permit fees, and the scheduling process for the required inspections should be directed to the Building Inspections Department at the Richfield Municipal Center(612-861-9816). The Owner shall provide evidence of a Destructive Report and subsequent Hazardous Materials Abatement for each property. 5.2. No less than 2 days prior to beginning the Work,the Contractor shall provide: - Description of proposed dust and noise control measures for the Property. 5.3. Upon completion of the Work, Contractor shall provide: - Copies of any permits required by government agencies other than the City of Richfield, such as transport or disposal permits. - Copies of any test results required by government agencies other than the City of Richfield, including but not limited to testing required as part of the asbestos abatement process. - Copies of all landfill records indicating receipt and acceptance of hazardous wastes by a landfill licensed to accept hazardous wastes. Section 6. Job Conditions - General • 6.1. Contractor will disconnect and abandon utilities serving the Property, including water, sanitary sewer, electricity, gas and telecommunications; or arrange for disconnection and abandonment of same. Contractor shall not begin work before field- verifying that disconnection and abandonment has been completed. 6.2. Owner shall ensure that the buildings will be vacated and use of the property will be discontinued prior to start of work. 6.3. Owner assumes no responsibility for actual condition of structures to be demolished. Conditions existing at time of inspection for bidding purposes will be maintained by Owner to the extent practicable. Contractor may salvage any and all materials and equipment from the Property. Variations within structures may occur due to removal and salvage operations prior to the start of demolition work. 6.4. This is a lump sum contract. Contractor must immediately contact Owner prior to exceeding the Contract Price set out in Section 3.1. Change orders for additional payment will not be granted due to the Contractor underestimating quantities of material(s). 314396v2 MTN RC125-1 4 6.5. Contractor shall provide all labor, materials, equipment, employee training, compliance with all regulations, permits, notifications, licenses and agreement necessary to perform the work described in this Contract. 6.6. All materials from undertaking the Work shall become the property and responsibility of the Contractor. 6.7. Contractor may choose to salvage materials and equipment. Any salvaged items must be removed from the Property in a timely manner as they are salvaged. On site storage or sale of salvaged items is prohibited. 6.8. The use of explosives and on site burning by the Contractor are prohibited. 6.9. Contractor shall provide water, electricity, communications and toilet facilities on site as necessary to complete the work. 6.10. Contractor shall provide and maintain uninterrupted vehicular access to the Property, including temporary demolition facilities, storage and work areas, for not only persons and equipment involved in the project but also emergency vehicles. 6.11. Contractor shall keep fire hydrants and water control valves free from obstruction and accessible for use. 6.12. Contractor shall take all necessary safeguards to prevent damage or injury to neighboring property. 6.13. Prior to closing or rerouting existing traffic lanes or sidewalks in any public street easement or right-of-way adjacent to streets, the Contractor shall obtain written permission from the City Engineer. Expenses related to lane closures, including but not limited to traffic barriers, signs and similar equipment as well as traffic control personnel, shall be the responsibility of the Contractor. Section 7. [Left Blank] Section 8. [Left Blank] Section 9. Demolition 9.1 Owner has not conducted any testing to determine the extent of lead based paint. Contractor shall conduct demolition in compliance with any state or federal regulations governing demolition of structures containing lead based paint. 9.2. Contractor shall use water sprinkling, temporary enclosures and other suitable methods to limit dust and dirt rising and scattering in air. Contractor shall comply with any and all governing regulations pertaining to environmental protection. Contractor 314396v2 MTN RC125-I 5 shall not use water when it may create hazardous or objectionable conditions such as flooding or pollution. 9.3. Contractor shall clean adjacent structures and improvements of dust, dirt and debris caused by demolition operations and return adjacent areas to condition existing prior to start of work. 9.4. Contractor shall demolish buildings, other structures, improvements, and landscaping completely and remove all debris from the Property. Contractor may use such methods as required to complete the work subject to the limitations of governing regulations. 9.5. Contractor shall proceed with demolition in a systematic manner, from top of structures to ground, and will complete demolition work above each floor or tier before disturbing supports on lower levels. 9.6. Contractor shall locate demolition equipment throughout the building and remove materials so as to not impose excessive loads to supporting walls, floor or framing. 9.7. Contractor shall provide and maintain interior and exterior shoring, bracing or other structural support to preserve structural stability and prevent movement, settlement or collapse of the building. 9.8. Contractor shall break up any concrete slabs-on-grade and remove from the Property. 9.9. Contractor shall demolish footings, foundation walls, tunnels and other below- grade structures and remove from the Property. 9.10 Contractor shall coordinate with well abandonment company, as identified by the City, to abandon wells. Section 10. Debris Control 10.1. Contractor shall maintain the Property free of extraneous debris. 10.2. Contractor shall prohibit overloading of trucks to prevent spillage on access and haul routes. 10.3. Contractor shall maintain a sweeping and clean-up program to prevent deposition, release and disbursal of soils and debris onto paved surfaces. 314396v2 MTN RC125-1 6 Section 11. Disposal 11.1. Contractor shall move from the Property all debris, rubbish and other materials resulting from demolition operations. 11.2. Contractor shall transport materials from the Property and legally dispose of them off-site in accordance with governing regulations. Section 12. Earthwork 12.1. Contractor shall rough grade the Property using clean fill after completing all abatement and demolition activities; taper edges of all excavated areas to minimize slope of 2 to 1, keeping soil disturbance to a minimum. Section 13. Excusable Delays 13.1. The following circumstances, and only these circumstances, will, at the HRA's discretion, be considered legitimate cause for a change in the commencement and/or completion dates specified in Section 4 of this Agreement: a. Material delay -- material delays that are beyond the control of the Contractor, which can be shown to have directly caused the overall late completion. b. Adverse weather and emergency conditions -- weather or emergency conditions that directly affect the scheduling of exterior work over a significant portion of the term of this Agreement. c. Strikes -- Contractors who face union work stoppage in the case where they have to rely on such a work force in order to complete the Work. d. Amendments -- amendments in the original scope of work, which can be reasonably shown to require an extension of the time allowed for completion. e. Other delays— act or neglect of the Owner, or of an employee of either, or of a separate contractor employed by the Owner, or by changes ordered in the Work or by unavoidable casualties or other causes beyond the Contractor's control. Section 14. Change Order 14.1. The HRA shall have the right, within the general scope of the Work and without notice to any surety or sureties of the Contractor, if any, to make changes in the Work, either by altering the nature of the same or by adding to or deducting from it. All changes shall, except in the case of emergencies endangering the safety of persons or property, be 3I4396v2 MTN RC125-I 7 made by written Change Order. The parties shall determine the effect of any Change Order on the Contract Price and project schedule by mutual agreement. The Contractor shall promptly comply with any and all written Change Orders. No such Change Order shall be deemed to invalidate the remaining terms and conditions contained in the Contract. Section 15. Waiver of Liability 15.1 It is agreed that the Work is undertaken at the sole risk of the Contractor. The Contractor does expressly forever release the LIRA and the City of Richfield from any claims, demands, injuries, damage actions, or causes of action whatsoever, arising out of or connected with the Work. Section 16. Indemnification 16.1. Any and all claims that arise or may arise as a consequence of any act or omission on the part of the Contractor, its agents, servants, or employees while engaged in the performance of the Work shall in no way be the obligation or responsibility of the HRA or the City of Richfield. The Contractor shall indemnify, hold harmless, and defend the HRA and the City of Richfield, its commissioners, council members, officers, employees, successors, and assigns against any and all liability, loss, cost, damages, expenses, claims, or actions, including attorney's fees which the HRA and the City of Richfield, its commissioners, council members, officers, or employees may hereinafter incur or be required to pay on account of injury to or death of any person or persons or damage to any property arising out of or by reason of any act or omission of the Contractor, its agents, servants, or employees in the execution, performance, or failure to adequately perform its obligations under this Agreement, whatever the cause of such injuries or damage. Section 17. Insurance 17.1. The Contractor agrees that in order to protect itself, the HRA, and the City of Richfield under the indemnity provisions set forth in Section 16 of this Agreement, it will at all times during the term of this Agreement, maintain, at a minimum, the following insurance policies: a. Workers Compensation Insurance. The Contractor shall maintain worker's compensation insurance in compliance with all applicable statutes including Chapter 176 of the Minnesota Statutes. Such policy shall include Employer's Liability Coverage and at least such amount(s) as are customarily provided in worker's compensation policies issued in Minnesota. Contractor further agrees to require all subcontractors and independent contractors to maintain worker's compensation insurance in compliance with all applicable statutes and to monitor the compliance of such subcontractors and independent contractors with the applicable statutes. 314396v2 MTN RC125-1 8 51 - 9 b. Commercial General Liability Insurance. The Contractor shall maintain Occurrence Based Commercial General Liability Insurance ("CGL"), providing coverage on an "occurrence", rather than on a "claims made" basis, which policy shall include coverage for the Completed Operations Hazard, and which shall also include a Broad Form General Liability Endorsement, ISO number GL 0404, or an equivalent form (or forms), so long as such an equivalent form (or forms) affords coverage which is in all material respects at least as broad. Any equivalent form (or forms) of coverage shall be approved by the I-IRA. The Contractor agrees to maintain total liability policy limits of at least One Million Dollars ($1,000,000), applying to liability for Bodily Injury, Personal Injury, and Property Damage, which total limits may be satisfied by the limits afforded under its Occurrence Based CGL policy as specified above, or by such policy in combination with the limits afforded by an Umbrella Liability Policy (or policies) provided, however, that the coverage afforded under any such Umbrella Liability Policy shall be at least as broad as that afforded by the underlying occurrence based CGL Policy as specified above. c. Automobile Liability Insurance. The Contractor shall maintain automobile liability insurance covering liability for Bodily Injury and Property Damage arising out of the ownership, use, maintenance, or operation of all owned, non-owned, and hired automobiles and other motor vehicles. Such policy shall provide total liability limits for combined Bodily Injury and/or Property Damage in the amount of at least One Million Dollars ($1,000,000) per accident, which total limits may be satisfied by the limits afforded under such policy, or by such policy in combination with the limits afforded by an Umbrella Liability Policy (or policies) provided, however, that the coverage afforded under any such Umbrella Liability Policy shall be at least as broad as that afforded by the underlying automobile liability insurance policy. The HRA and the City of Richfield shall be named as "additional insured" parties with respect to the insurance policies specified in,(b) and (c) above. The Contractor shall not commence work until a Certificate of Insurance evidencing all of the insurance policies required above is approved and a written Notice to Proceed is issued by an authorized representative of the HRA. The HRA shall, at any time during the term of this agreement, have the right to require that the Contractor secure any additional insurance, or additional feature to existing insurance, as the HRA may reasonably require for the protection of its interests or those of the public. It is expressly understood that the HRA does not in any way represent that the min imum insurance coverage set forth in this paragraph is sufficient or adequate to protect the interest or liabilities of the Contractor. Section 18. Bond 314396v2 MTN RC125-1 9 5 D 18.1. No payment or performance bonds for the Work shall be required pursuant to Minn. Stat. § 574.26. Section 19. Lien Waiver 19.1. Neither the Contractor nor any subcontractor or other person or entity furnishing labor, equipment, or materials in connection with the Work shall file any mechanic's lien against the HRA's buildings, structures or land or any part thereof, provided that the HRA makes all payments due to Contractor under this Contract. The Contractor shall protect, defend, indemnify, and hold harmless the HRA and the City of Richfield from any and all claims, demands, or actions of whatever nature arising out of work, labor, equipment, or materials furnished by the Contractor or its subcontractors in connection with the Work, provided that the HRA makes all payments due to Contractor under this Contract. Payment of the Contract Price shall not be due until the Contractor has delivered to the HRA lien waivers acceptable to the HRA, which release the HRA from all liens that may arise in connection with the Work. The Contractor shall list on the attached Exhibit A the • names of all suppliers and/or subcontractors that will provide materials, services, or labor in connection with the Work. The Contractor will notify the HRA of any changes in this list prior to the commencement of the Work. Section 20. Subcontractors 20.1. Contractor agrees to bind every subcontractor by the terms, conditions, and provisions set forth in the Contract that are applicable to the subcontractor's work, unless otherwise specifically agreed otherwise in writing by the HRA. 20.2. Contractor agrees to pay every subcontractor within 10 days of receipt of payment from the HRA pursuant to Minn. Stat. § 471.425. Section 21. Assignment 21.1. This Contract shall be binding upon the Contractor, its legal representatives, heirs, successors, and assigns. No assignment or attempted assignment of this Contract or any rights hereunder shall be effective unless the written consent of the HRA is first obtained. No such assignment, even if consented to by the HRA, shall relieve the Contractor from liability under this Contract for the performance and completion of the Work in accordance with the Contract. Notwithstanding the foregoing, Contractor shall be entitled to use subcontractors to perform the Work. Section 22. Entire Agreement 22.1. The Contract contains all the terms, conditions, and provisions pertaining to the Work to be completed by the Contractor, there being no other understandings, agreements, or warranties, express or implied. All prior negotiations and dealings regarding the subject matter of the Agreement are superseded by and merged into the Contract. 3I4396v2 MTN RC125-1 10 G�Z — 1 Section 23. Applicable Law 23.1. This Contract shall be construed in accordance with and governed by the laws of the state of Minnesota. Section 24. Amendment 24.1. This Contract may be modified or amended only with the written approval of the HRA and the Contractor. Section 25. Construction 25.1. In the event that any one or more of the provisions of this Contract, or any application thereof, shall be found to be invalid, illegal, or otherwise unenforceable, the validity, legality, and enforceability of the remaining provisions or any application thereof shall not in any way be affected or impaired thereby. Section 26. Authority 26.1. Each of the undersigned parties warrants that it has the full authority to execute this Contract, and each individual signing this Contract on behalf of a corporation hereby warrants that he or she has full authority to sign on behalf of the corporation and that he or she represents and binds such corporation thereby. Section 27. Waiver 27.1. No failure by the HRA to insist upon the strict performance of any covenant, duty, agreement, or condition contained in this Agreement or to exercise any right or remedy consequent upon a breach thereof shall constitute a waiver of any such breach or any other covenant, agreement, term, or condition, nor does it imply that such covenant, agreement, term, or condition may be waived again. Section 28. Payments to Contractor and Completion 28.1. The Contractor shall be paid upon completion of the Work in accordance with the payment schedule of the HRA, if any, and this section. 28.2. Application for Payment. Prior to receiving payment for Substantial Completion of the Work, the Contractor shall in writing state that the respective portion of the Work has been substantially completed and is free and clear of all liens as provided in this Contract. Upon Substantial Completion and inspection and verification by the HRA, the payment for that portion of the Work shall be made. Final payment shall be made when Contractor certifies that Final Completion has been achieved and verified by the HRA. 3I4396v2 MTN RC125-1 11 IN WITNESS WHEREOF, the parties have caused this Contract to be duly executed in their names and behalves and on or as of the date and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By Suzanne M. Sandahl Its Chair By Steven L. Devich Its Executive Director 314396v2 MTN RC]25-1 12 CONTRACTOR By Its By Its THIS INSTRUMENT DRAFTED BY: Richfield Housing and Redevelopment Authority in and for the City of Richfield 6700 Portland Avenue South Richfield, MN 55402 (612) 861-9760 314396v2 MTN RC125-I 13 51 - IL/ EXHIBIT A LIST OF SUPPLIERS AND SUBCONTRACTORS 314396v2 MTh RC 125-I A-1 AGENDA ITEM#: 5J REPORT#: 12 imilgial STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2013 REPORT PREPARED BY: CHRISTINE COSTELLO,ECONOMIC DEVELOPMENT COORDINATOR NAME,TITLE REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: / U. SIGN URE ri ,----- - 6/REVIEWED BY EXECUTIVE DIRECTOR: ` t/AJ ITEM FOR HRA CONSIDERATION: Consideration of a resolution supporting the submittal of an application for commitment to funding one half of the total annual cost of Hennepin County's Open to Business Initiative and to contract with Metropolitan Consortium of Community Developers. I. RECOMMENDED ACTION: By Motion: Adopt a resolution supporting the submittal of an application for commitment to funding one half of the total annual cost of Hennepin County's Open to Business Initiative and to contract with Metropolitan Consortium of Community Developers. II. BACKGROUND To promote economic development, create and retain jobs, and cultivate entrepreneurs, Hennepin County Housing and Redevelopment Authority (HCHRA) launched a small business and entrepreneur technical assistance initiative dubbed "Open to Business." The initiative began as a partnership between the City of Brooklyn Park and the nonprofit community development organization Metropolitan Consortium of Community Developers (MCCD). Based on the original initiative, Hennepin County Housing and Redevelopment Authority (HCHRA) started their own partnership with MCCD to provide benefits of the original program to suburban Hennepin communities. 01232013-Open to Business Approval Request.doc Hennepin County Housing and Redevelopment Authority (HCHRA) offers 1:1 matching grants for municipalities who wish to provide "Open to Business" technical assistance to their community's entrepreneurs and small businesses. The annual cost to participate in the Open to Business Initiative is $10,000. If Richfield Housing and Redevelopment Authority (HRA) provides local matching funds of$5,000 towards the annual program cost, Hennepin County would match our amount to allow for Richfield to participate. If Richfield was to participate, the partnership with HCHRA and MCCD it would provide direct, one-on-one technical assistance services to entrepreneurs and small businesses. The services offered include: business plan development, feasibility studies, cash flow and financing projections, marketing, preparing loan requests, and advocacy with lending institutions. MCCD will help connect entrepreneurs with banks, community development lenders, Small Business Administration (SBA) resources and MCCD's own small business loan fund so that entrepreneurs can access the capital they need to be successful. The "Open to Business" model is based on MCCD providing services to participating municipalities' entrepreneurs and small businesses for the flat annual fee, therefore the service is free of charge to businesses and entrepreneurs. In 2012 the HCHRA provided 1:1 matching funding for 14 suburban Hennepin communities. During the third quarter of 2012, the 14 municipalities have achieved the following outcomes: • $823,000 in facilitated financing to Hennepin businesses; • $2.3M in leveraged capital; • 70 employees created or retained as a result of financing; • 180 businesses/entrepreneurs served; and • 820 hours of technical assistance provided. III. BASIS OF RECOMMENDATION A. POLICY • It is appropriate to seek outside funding whenever possible. • During our last Comprehensive Plan update, a participant survey was conducted and of all the survey questions posed, the expansion of local business had the highest positive response rate (91%). B. CRITICAL TIMING ISSUES • The resolution must be received by Hennepin County by the end of January 2013. C. FINANCIAL • A local match is required to apply for Hennepin County's Open to Business Initiative. • The local matching fund grant is $5,000. • The annual fee for Open to Business Initiative for a community the size of Richfield is $10,000. • If the local matching fund is approved by the HRA, Hennepin County will provide matching funds of$5,000, to meet the annual fee of $10,000. D. LEGAL • The program guidelines for Hennepin County's Open to Business initiative requires the Housing and Redevelopment Authority (HRA) to pass a resolution to commitment to fund one half($5,000) of the total annual cost ($10,000) and to contract with Metropolitan Consortium of Community Developers (MCCD) "Open to Business" if Hennepin County awards matching funds. IV. ALTERNATIVE RECOMMENDATION(S) • Deny authorization and direct staff to withdraw participation from participating in Hennepin County's Open to Business Initiative. V. ATTACHMENTS • Resolution • Hennepin County Open to Business brochure VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A 53 - HRA RESOLUTION NO. RESOLUTION APPROVING THE CITY OF RICHFIELD'S PARTICIPATION IN HENNEPIN COUNTY'S 2013 ECONOMIC DEVELOPMENT INITIATIVE "OPEN TO BUSINESS" WHEREAS, Hennepin County Housing and Redevelopment Authority is soliciting proposals from suburban Hennepin municipalities interested in launching or expanding a small business and entrepreneur technical assistance initiative, referred to as "Open to Business"; and WHEREAS, the program provides one on one technical assistance services to entrepreneurs and small business which include: business plan development, feasibility studies, cash flow and financing projections, marketing, preparing loan requests, and advocacy with lending institutions; and WHEREAS, the Richfield Housing and Redevelopment Authority believes that the services available through the Open to Business Program have the potential to benefit existing commercial area and to promote future growth of entrepreneurship and business growth in the City of Richfield. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota that staff is herby authorized to make application for a $5,000 matching fund grant for participation in Hennepin County's 2013 Economic Development Initiative "Open to Business". Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 23rd day of January, 2013. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary 1/15/20131/15/2013 i Rodeo E• ipment a ufacturi n• r . ; �. `, 0, - Metropolitan Consortium of.:om.nunnty Developers _. ... �; . 7, Open to Business is a program of MCCD in partnership - with Hennepin County Housing and Redevelopment Authority TO BUSINESS __7,. Need a Trusted Advisor? "I gained so much from it and feel better Hennepin equipped to now organize the needed i,- 4.' I. 9 ; information to complete the business plan phase." r ; A Free Susan Piazza Business Piazza Designs Consultant? "You answered a few weeks'worth of Thank you to the following businesses who contribute loan capital and marketing support =-- „:-.,,V;;' „ questions in a few minutes. You offer a 4••;,044••;,0, •. priceless service of solid information." - %v, Kerry Dikken ¢. r Blasted Art, Inc. WELLS '` ----- ;I [Mbank. FGO DP 1 •� I Saucy Burts A- y .% s...- .9J ::::Service—. ��� `m ;,rt:.- = For more information or to get started, call �� i —; Need (612) 789-7337 ext 21, or email I Jo Money to Start It -11 or Expand Your Business? W •-." , 3137 Chicago Avenue South < ; Minneapolis, MN 55407 For more information or to get started, call ` ' l--, i (612)789-7337 ext 21, or emai�oa�:NESS www.opentobusinessmn.org email info @opentobusinessmn.org Open to Business Loan We Provide Assistance in We Help You Answer the Program the Following Areas: Following Questions: Direct loans range up to $25,000 for Financial management How much do l need to borrow? startups, larger loans/packages are available What are cashflow projections and why are for established businesses. they important? Would a term loan or a line of credit work Loan repayment terms on direct loans of up best for me? to $25,000 generally range from three to five Bookkeeping set-up and training years. How do I keep track of sales and expenses? How can I finance this business with very ;. little equity and poor credit? *, �,� Loan packaging -,, _ ' i -----.-.----. R ai For any size loan, start up or expansion Why does keeping good financial records _. projects.. help nsure my success? What are the document requirements I need y to get a loan? g `: i L V What other funding sources are available to . C.- ' Business plan assistance me? ' . Do I need a business plan? If so, what do I Iinclude in it? What if my start up expenses are more than I projected? Real estate analysis "I just want to thank MCCD. Without Should I rent or own my business space? Open to Business provides one on one their help in obtaining financing we Marketing assistance business counseling to current and �. wouldn't have been able to purchase prospective entrepreneurs. Our consultants L.2 Who are my customers and how do I reach work with you to develop a strong business c our building and expand our business them? plan, identify challenges and opportunities, to the level it is at today." and to tailor solutions. In addition to direct Mark Aune Strategic planning consulting, Open to Business program staff A&A Millwork How do I evaluate and manage growth? can link entrepreneurs with additional resources to help them succeed, including "Without MCCD's help our business Business regulations training programs, community or would not have been possible. More What licenses or permits do I need? governmental services, and industry and than an organization that provided How do I get them? business professionals. loans, MCCD is a financial partner in our We'll work with you to determine all of your business." Professional referrals capital needs, and we can help you identify Noelia Garcia Where do I find an accountant?Attorney? and apply for financing that meets those La Loma Tamales, LLC needs. AGENDA ITEM#: 6 REPORT#: 13 arAlli STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2013 REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON,HOUSING SPECIALIST NAME,TITLE REPORT PRESENTER: KAREN BARTON, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: 0 e 741 r� RE REVIEWED BY EXECUTIVE DIRECTOR: � , ■ , ITEM FOR HRA CONSIDERATION: Consideration of a request for a subordination of a Housing and Redevelopment Authority Transformation Program loan at 7720 Vincent Avenue. I. RECOMMENDED ACTION: By Motion: Approve or deny the request for a subordination of a Housing and Redevelopment Authority Transformation Program loan at 7720 Vincent Avenue. II. BACKGROUND Andrew and Jean Medzis (Homeowners) of 7720 Vincent Avenue received a $9,980 Transformation Loan from the Housing and Redevelopment Authority (HRA) on May 5, 1999. The Homeowners are seeking to refinance their first mortgage and are requesting a subordination of the HRA lien. The Homeowners are proposing to consolidate their Home Equity Line of Credit (HELOC) into the first mortgage. The HELOC is currently in third position, so adding its debt to the first mortgage causes an increase in debt superior to the HRA's lien of 69 percent. The HRA's subordination policy limits this increase to no more than 50 percent. As a result, the request was denied by staff. The Homeowners are appealing the denial and have asked that their request be brought to the HRA for consideration. 01232013 Medzis (7720 Vincent)subordination appeal.doc The HRA's lien is a 30-year, forgivable, zero-interest loan that is currently in second position behind a 15-year fixed-interest primary mortgage with a balance of $76,884. The HELOC is in third position and has a balance of$48,217. The Homeowners are seeking to consolidate the first and third mortgages. The HRA's lien would be in second position behind the new, 15-year fixed-interest primary mortgage of$130,250. The current combined loan-to-value (LTV) ratio is 63%; the new LTV would be 66%. The HRA's policy requires the LTV to be at or below 80%, including the HRA lien and all superior debt. The Subordination policy provides that the HRA may grant exceptions to the 50 percent limit on increased superior debt in cases where superior debts are found to be unusually low with sufficient equity protection. III. BASIS OF RECOMMENDATION A. POLICY According to the HRA Subordination and Satisfaction Policy, the HRA will subordinate its mortgage interest if the following conditions are met: • The total debt secured by the property, including the HRA lien and all superior mortgages, shall not exceed 80 percent of the documented market value of the property. A staff-authorized administrative appeal of the Policy can be granted if the loan-to-value ratio does not exceed 85 percent or if the amount of superior debt does not increase more than the value of existing superior debt plus closing costs. • The overall value of superior debt must not be increased by more than 50 percent. Exceptions may be granted by the HRA in cases where superior debts are found to be unusually low with sufficient equity protection. • Closing costs do not exceed three percent. • Payment terms are within the financial means of the borrower. • Equity being removed must be no more than $5,000 or must be for qualified home improvements. • Property taxes must be current. • No more than one subordination has been granted to the loan within the past five years. B. CRITICAL ISSUES • The combined loan-to-value ratio is 66 percent. • The proposed 15-year, fixed-interest first mortgage of$130,250 will pay off the existing mortgage, with a remaining balance of$76,884, and the HELOC, with a balance of$48,217. • The amount of debt in front of the HRA lien increases 69 percent from $76,884 to $130,250. • The current appraised value is $214,000. • The HRA is currently in second position and the HELOC is in third position. • All other requirements of the subordination policy are met. C. FINANCIAL • The application fee has been received for the appeal request. • The HRA agreed to subordinate for a refinance of the principal mortgage in 2002. The principal mortgage amount at that time was $192,000. • The reduction in the interest rate from 5.25 percent to 3.25 percent will result in a monthly savings of approximately $235 per month. The savings offers the homeowners the opportunity to shorten the first mortgage term by applying the savings of the reduced monthly payment to the principal of the loan. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S) • Approve the subordination request. • Deny the subordination request. V. ATTACHMENTS • Subordination & Satisfaction Policy • Appeal Letter from homeowner, dated 1/9/2013 • Appeal Letter from lender, dated 1/7/13 VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Andrew and Jean Medzis, Homeowners RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY SUBORDINATION & SATISFACTION POLICY EFFECTIVE JULY 2012 Subordinations Richfield Housing and Redevelopment Authority (HRA) loan recipients requesting subordination of the interest of the HRA in real property must submit a Subordination Request Form, the required supporting documentation, and a processing fee. Forms are available on the City of Richfield website (http://www. cityofrichfield.org/) or by calling the Community Development Department at 612-861-9760. Requests will not be considered until all documents and the processing fee have been received. Required Documents The following information must be submitted with the Subordination Request Form: 1. A typed letter dated and signed by the mortgagor, stating the reason for the requested subordination and the use of any equity being removed as part of the loan transaction. 2. A copy of the current appraisal (dated within six months of application) or other evidence of market value of the property that is acceptable to the HRA. 3. A copy of current title work(must indicate all debt against the property). 4. Explanation of remaining debts or liens with supporting documentation (i.e. most recent mortgage bill). 5. Estimated closing costs/settlement statement, where applicable. 6. A copy of the mortgagor's loan application. 7. Additional documentation may be required. Evaluation Criteria The Richfield HRA will subordinate its mortgage interest if all of the following conditions are met, to the extent that they are applicable: 1. Closing costs are reasonable. Generally this shall mean that the sum of all discount points, origination fees, and lender ancillary fees generally shall not exceed 3% of the new first mortgage amount. 2. If the HRA believes that the payment terms of the refinance are within the financial means of the borrower. 3. The total debt secured by the property, including the HRA lien and all superior mortgages, does not exceed 80% of the documented market value of the property. 4. Any equity being removed beyond the cost of the loan transaction will be used to improve the property. A typed letter, dated and signed by the applicant, must be submitted stating the use of any equity being removed. 5. The overall value of superior debt must not be increased by more than 50%. Exceptions may be granted by the HRA in cases where superior debts are found to be unusually low with sufficient equity protection. 6. If no more than one subordination request has been approved by the HRA in the past five years. 7. Property taxes, if not escrowed by the superior mortgage holder, must be current. The HRA will not subordinate to reverse mortgages. In most cases, interest-only loans or loans with interest- only options, revolving lines of credits or debt consolidation will not be allowed unless the HRA determines that an acceptable reason warrants this type of loan. The HRA may approve other subordination requests not meeting the conditions above on a case-by-case basis that are clearly in the best interests of the HRA, where the security of the HRA loan remains acceptable, and denial of the request will cause or contribute to a documented hardship on the part of the borrower. As a condition of approval, the HRA may require the Borrower to receive financial counseling. While many courses are available at no charge, the Borrower is responsible for any costs associated with the counseling. The course must be approved by the HRA. Fees The fee for a subordination request is established by the HRA. If the subordination request is denied, the fee will be returned with a letter explaining the reason(s)for denial. An additional fee is required for an appeal to the HRA and is non-refundable. Processing Subordination requests will be processed by HRA staff, who will submit the request with a recommendation for action, to the Executive Director. The Executive Director may request review and final decision by the HRA. Requests for subordination should be submitted 30 days prior to the date the agreement to subordinate is needed. Exceptions may be made on a case-by-case basis. Appeal Process In cases where a subordination request does not meet the Policy, the Executive Director may grant an administrative appeal under the following circumstances: • Loan-to-value (LTV) ratio is greater than 80%, but no greater than 85%; or • Equity being removed for anything other than property improvements does not exceed $5000; or • The amount of financing superior to the HRA lien does not increase more than the cost of settlement charges related to the refinancing. If an application is denied, the applicant may request an appeal in writing. Appeals will be submitted by staff to the HRA at the next regularly scheduled meeting, provided the request is made at least 10 days prior to that meeting. The HRA meets on the third Monday of each month. Satisfactions When a loan made by the HRA is paid in full, a document satisfying the lien will be prepared by the HRA and delivered to the borrower for recording. The borrower is responsible for the cost of recording the satisfaction. January 9,2013 Housing and Redevelopment Authority City of Richfield 6700 Portland Avenue Richfield, MN 55423 Re: Subordination Request of Richfield Discovered Loan To whom it may concern, I, Andrew Medzis along with my wife Jean Medzis have been residents at 7720 Vincent Ave S.since 1987.We are requesting a review of a Subordination Request to our Richfield Transformation Loan of $10,000.00. We are in the process of restructuring our home loan and a home-equity line of credit loan.Our goals are to: 1.) Retain residency in Richfield.2.)Reduce monthly payments by consolidating the two loans into a single loan with a lower interest rate, 3.)Utilize the difference in interest payment(s)of approximately$235 per month,and apply this amount to the principal portion of the new loan.We are not attempting to receive any cash-out provisions with this process.An additional consideration to this loan restructuring is the opportunity to shorten the term, by applying the savings of the reduced monthly interest payment to the principal of the loan. It has come to our attention that a policy with the loan program does not provide for subordination during restructuring or refinancing of mortgages. The Transformation Loan Program assisted with our decision to expand and remodel our home in Richfield.We are both full-time employed,high credit scored,with a well-established residential history in Richfield and would appreciate your considerations toward allowing the subordination of the existing Transformation Loan.We are not planning on selling the home,and would benefit financially by reducing our mortgage interest payments.The Transformation Loan would still be in place,with no other changes from the initial mortgage. Refinancing or restructuring a mortgage to reduce interest payments is a common practice and we as Richfield homeowners and participants in the Transformation Loan Program would greatly appreciate your assistance and allow this to take place. Sincerely, as1.4e,tzulAtc4Z- Andrew Medzis Attchmts: Financial considerations provided by our mortgage representative. To: City of Richfield — From: Scot Ritchie @ Bridgeview Bank Mortgage Company Re: Subordination Request for Andrew and Jean Medzis At the request of the City of Richfield,I am providing some monetary and lending details to be submitted with the Appeal for Subordinate Approval for Andrew and Jean Medzis in their attempt to refinance their 14 mortgage and HELOC on their Primary Residence in Richfield,MN. 1. Monthly payments will improve as follows(Principal&Interest): - Current 14:$1,543.45 - Current 2nd:$485.00 • TOTAL P&I Payment:$2,028.45 - Proposed loan will maintain existing loan term of 81 months - Proposed 14:$1,793.02 • PAYMENT SAVINGS:$235.43 *By consolidating the current mortgage and HELOC on the same term as the existing 14 mortgage,the borrower has a payment improvement of over$230/month.* 2. The new loan amount is set to be$130,250. The appraised value is$214,000. This put's our Loan-to-Value Ratio at 60% and the Combined-Loan-to-Value Ratio(including City of Richfield)is 65.5%. 3. The City of Richfield originally subordinated to a loan amount of$192,000 in October 2002. The loan that was paid off in October 2002 had a starting balance of$140,000 that originated in May 1999(value at that time unknown). 4. The borrower is not extending additional debt against their property(simply restructuring the current loans and interest rate). 5. The borrower Is not extending the repayment period of their current financing. The 14 mortgage has an 81 month term remaining and the HELOC has approximately 17 years remaining on its term. • These are a few of the items that we consider to provide compensating factors to the subordination request for Andrew and Jean Medzis on their property located on 77th and Vincent in Richfield,MN. Please feel free to contact me should you have any furt(ter questions. I can be reached at 952.232.6133 or via eMail at ;;.ritchie iinybbmc.com Thank you .S615461 // 3 Scot Ritchie Date NOTICE:This is not a commitment to lend or extend credit.Restrictions may apply.Information and/or data is subject to change without notice. All loans are subject to credit approval.Not all loans or products are available in all states. AGENDA ITEM#: 7 REPORT#: 14 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2012 REPORT PREPARED BY: KATE AITCHISON/JULIE URBAN,HOUSING SPECIALISTS NAME,TITLE REPORT PRESENTER: KAREN BARTON, ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: /�M r IMPlURE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Public hearing and consideration of a resolution authorizing the sale of 7537 Dupont Avenue to Colette Therese O'Shea, and consideration of a Contract for Private Development with Colette Therese O'Shea for the construction of a single family home under the Richfield Rediscovered Program. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: 1) Approve a resolution authorizing the sale of 7537 Dupont Avenue to Colette Therese O'Shea; and 2) Authorize execution of a Contract for Private Development with Colette Therese O'Shea for the development of a single family home under the Richfield Rediscovered Program. II. BACKGROUND The Housing and Redevelopment Authority (HRA) purchased 7537 Dupont Avenue in 2010 and demolished the existing sub-standard house in 2011. Colette O'Shea (Buyer), along with Jim Klem Construction (Builder), has submitted an application to purchase the lot and construct a new home under the Richfield Rediscovered Program. A Purchase Agreement has been signed between the Buyer and Builder. 01232013 RR Contract 7537 Dupont(O'Shea) The new two-story home will have 3,200 finished square feet, three bedrooms, three and a half baths and an attached, two-stall garage. The home will have an estimated end-value of$350,000. Construction is expected to begin in March and will be completed in the summer of 2013. The Builder anticipates showcasing the home in the Fall Parade of Homes. If the project is approved by the HRA, project information, including plan elevations will be mailed to the surrounding neighbors as a courtesy. III. BASIS OF RECOMMENDATION A. POLICY • The proposed project meets the objectives of the Richfield Rediscovered Program: o Provides new, higher valued housing. o Alleviates a shortage of housing choice for families. o Facilitates the HRA's "Market Rate Initiatives" by providing a three-bedroom, owner-occupied house designed for a family. • The project meets the Housing Design and Site Development Criteria, as defined in the Richfield Rediscovered Guidelines. B. CRITICAL TIMING ISSUES • Closing on the lot will occur once a building permit is ready to be issued and is required to occur no later than March 15, 2013. • Per the Contract for Private Development, construction must be completed by September 1, 2013. C. FINANCIAL • The appraised value of the lot is $48,000. • The HRA acquired the foreclosed property in 2010 for $60,000 and razed the existing house at a cost of$7,400. • Under the terms of the Contract the purchase price of$48,000 will be due at closing. • Under the terms of the Contract the Builder will submit a $10,000 cash escrow to be held until construction is completed as provided in the Contract. • The Buyer will receive a $5,000 credit if certification is obtained through Minnesota Green Path. • The Buyer has submitted evidence of financing. D. LEGAL • The HRA Attorney prepared the Contract for Private Redevelopment. • Notice of the public hearing was published in the Sun Current on January 10, 2013. • A mailed notice was sent to adjacent neighbors, as a courtesy. IV. ALTERNATIVE RECOMMENDATION(S) • Do not execute the Contract for Private Development. • Amend the Contract for Private Development and direct staff to work with the Builder to revise the proposal. V. ATTACHMENTS • Resolution • Photo of 7537 Dupont Avenue lot • Contract for Private Development • Building Plans/Elevations VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Colette O'Shea, Buyer • Joshua Klem, Builder I7- 1 HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 7537 DUPONT AVENUE TO COLETTE THERESE O'SHEA. WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in furtherance of the Richfield Rediscovered Program adopted by the HRA, said real property being described as: Address: 7537 Dupont Avenue South Legal: Lot 15, Block 22, Irwin Shores Addition, Hennepin County, Minnesota WHEREAS, the HRA is authorized to sell real property within its area of operation after a public hearing; and WHEREAS, the purchasers of the described property have been identified as Colette Therese O'Shea, and WHEREAS, a Contract for Private Development has been prepared, and the sale price of 7537 Dupont Avenue is $48,000.00 with performance security in the amount of $10,000; and WHEREAS, a public hearing has been held after proper public notice. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota: 1. A public hearing has been held and 7537 Dupont Avenue is authorized to be sold for $48,000.00 to Colette Therese O'Shea and 2. The Chairperson and Executive Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sale to the Builder. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 23rd day of January, 2013. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary Photo of 7537 Dupont Avenue South r fi r ?I, ` vv. { ePl S }■/ W tig(5, .. Y x : 4 , pe„s , ( Ea 1 . : 4 A',.._t V. u-4' i.l, .Q t A 'tEg, .4'''' i 'f % f, • ' Al:,r Z *t., } LL u. • b MI LI INI . . , t, ___ _ , 7.., ' r. t, ` l � $ . �ia�► .s ...." i r -rte mo .-:r.; -w'illt �. a. i, i y � _,�Y ,.. _ "�, ;„ ,f -.o mot ._ . +ter." _ ++te _ 7 -3 CONTRACT FOR PRIVATE DEVELOPMENT Between HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD and Colette Therese O'Shea for property located at 7537 Dupont Avenue South This Instrument Drafted by: Housing and Redevelopment Authority in and for the City of Richfield 6700 Portland Avenue South Richfield, Minnesota 55423 Telephone: (612) 861-9760 4105670 JAG RC125-65 —t) CONTRACT FOR PRIVATE DEVELOPMENT THIS AGREEMENT, made and entered into as of this 23`d day of January, 2013,by and between the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, having its principal office at 6700 Portland Avenue, Richfield, Minnesota (HRA), and Colette Therese O'Shea, single person (Buyer). WITNESSETH: WHEREAS, the City of Richfield (City) and the HRA have previously created and established a Redevelopment Project (Project) pursuant to the authority granted in Minnesota Statutes, Sections 469.001 through 469.047 (collectively,the Act); and WHEREAS, pursuant to the Act, the City and the HRA have previously adopted a redevelopment plan for the Project(Redevelopment Plan); and WHEREAS, in order to achieve the objectives of the Redevelopment Plan and particularly to make specified land in the Project available for development by private enterprise for and in accordance with the Redevelopment Plan, the HRA has determined to provide substantial aid and assistance to finance development costs in the Project; and WHEREAS, the Buyer has proposed a development as hereinafter defined within the Project which the HRA has determined will promote and carry out the objectives for which the Project has been undertaken, will assist in carrying out the obligations of the Redevelopment Plan, will be in the vital best interests of the City and the health, safety and welfare of its residents and is in accord with the public purposes and provisions of the applicable state and local laws and requirements under which development in the Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the mutual covenants and obligation of the HRA and the Buyer, 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: Construction Plans. The construction plans approved by the HRA pursuant to Section 4.1 of this Agreement. The Construction Plans include a schedule for construction of the Improvements, preliminary plans and schematics of the Improvements to be constructed, and a landscaping plan. 410567v1 JAE RCI25-65 1 7- 5 • Development. The Property and the Improvements to be constructed thereon according to the Construction Plans approved by the HRA. Event of Default. Event of Default has the meaning given such term in Section 8.1. Guidelines. The Richfield Rediscovered Program Guidelines Lot Sale Program, revised November 15, 2010 and attached as Exhibit B to this Agreement. Improvements. Each and all of the structures and site improvements constructed on the Property by the Buyer, as specified in the Construction Plans to be approved by the BRA. Minimum Market Value. $350,000, which is the minimum market value for the Property and Improvements as confirmed by the Hennepin County Assessor. Property. The real property legally described as: Lot 15,Block 22,Irwin Shores,Hennepin County,Minnesota having a street address of: 7537 Dupont Avenue South Unavoidable Delays. Delays which are the direct result of strikes, labor troubles, fire or other casualty to the Improvements, litigation commenced by third parties which results in delays or acts of any federal, state or local government, except those contemplated by this Agreement, which are beyond the control of the Buyer. Section 1.2. Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: A. Form of Certificate of Completion B. Program Guidelines—Lot Sale Program C. Form of Quit Claim Deed D. Well Disclosure Section 1.3. Rules of Interpretation. (a) This Agreement shall be interpreted in accordance with and governed by the laws of the State of Minnesota. (b) The words "herein" and "hereof' and words of similar import, without reference to any particular section or subdivision refer to this Agreement as a whole rather than any particular section or subdivision hereof. (c) References herein to any particular section or subdivision hereof are to the section or subdivision of this Agreement as originally executed. 410567v1 JAE RCI25-65 2 7— (p (d) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions. ARTICLE II. REPRESENTATIONS AND UNDERTAKINGS Section 2.1. By the Buyer. The Buyer makes the following representations and undertakings: (a) The Buyer has the legal authority and power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement; (b) The Buyer has the necessary equity capital or will obtain commitments for financing necessary for construction of the Improvements; (c) The Buyer will construct the Improvements in accordance with the terms of this Agreement and all local, state and federal laws and regulations; (d) The Buyer 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) The plans for the Improvements have been prepared by a qualified draftsperson or architect. (f) The Buyer intends to reside at the Property following completion of construction of the Improvements and is not acquiring the Property for the purpose of resale or speculation. (g) The Buyer has read and understands the Guidelines and agrees to be bound by them. Section 2.2. By the HRA. The HRA makes the following representations as the basis for the undertaking on its part herein contained: (a) The HRA is authorized by law to enter into this Agreement and to carry out its obligations hereunder; and (b) The IIRA will, in a timely manner, subject to all notification requirements,review and act upon all submittals and applications of the Buyer and will cooperate with the efforts of Buyer to secure the granting of any permit, license, or other approval required to allow the construction of the Improvements. ARTICLE III. 410567v1 JAG RC125-65 3 ACQUISITION OF PROPERTY; CONVEYANCE TO BUYER Section 3.1. Purchase of Property by Buyer. The HRA agrees to sell the Property to Buyer and the Buyer agrees to purchase the Property from the HRA in an "as-is" condition. The HRA agrees to convey the Property to the Buyer by Quit Claim Deed in the general form of Exhibit C. The HRA's deed to the Builder will contain the right of reverter required in Section 8.3. The purchase price for the Property will be $48,000. Section 3.2. Title and Examination. As soon as reasonably possible after execution of this Contract for Private Development by both parties, (a) HRA shall surrender any abstract of title and a copy of any owner's title insurance policy for the property, if in HRA's possession or control, to Buyer or to Buyer's designated title service provider; and (b) Buyer shall obtain the title evidence determined necessary or desirable by Buyer or Buyer's lender, including but not limited to title searches, title examinations, abstracting, a title insurance commitment or an attorney's title opinion, at Buyer's selection and cost, and provide a copy to the HRA. The Buyer shall have 20 days from the date it receives such title evidence to raise any objections to title it may have. Objections not made within such time will be deemed waived. The HRA shall have 90 days from the date of such objection to affect a cure;provided, however, that the HRA shall have no obligation to cure any objections, and may inform Buyer of such. The Buyer may then elect to close notwithstanding the uncured objections or declare this Agreement null and void, and the parties will thereby be released from any further obligation hereunder. Section 3.3. Taxes and Special Assessments. Real estate taxes and installments of special assessments will be prorated between the HRA and Buyer as of the date of closing. Section 3.4. Soil Conditions and Hazardous Wastes. The Buyer acknowledges that the HRA makes no representations or warranties as to the conditions of the soils on the Property, its fitness for the construction of improvements or any other purpose for which the Buyer may use the Property, or regarding the presence of hazardous wastes on the Property. The HRA will allow reasonable access to the Property for the Buyer to conduct such tests regarding soils conditions and hazardous wastes as the Buyer may desire. Permission to enter the Property to conduct such tests must be given in writing under reasonable terms and conditions established by the HRA. Section 3.5. Site Clearance. The HRA will be responsible for clearance of all buildings as required to prepare the Property for development. All other site preparation is the responsibility of Buyer. Buyer will comply with all of the provisions of the Guidelines relating to tree protection,preservation and replacement. Section 3.6. Other Preconditions to Closing. Closing may not take place until the HRA is satisfied that the proposed Improvements are in all respects in full compliance with the provisions of the Guidelines contained in Exhibit B. 410567v1 JAE RC125-65 4 Section 3.7. Closing. Closing must take place on or before March 15, 2013, or such other date as may be agreed to by the Buyer and HRA in writing. At Closing,pursuant to Section 5.1, the Buyer will provide the HRA with $10,000 to be held in escrow until the Improvements are completed. Section 3.8. Closing Costs. The Buyer will pay: (a)the closing fees charged by its title insurance company or other closing agent, if any, utilized to close the transaction for Buyer; and (b) the recording fees for the Contract for Private Development and the deed transferring title to the Buyer. The HRA will pay all other fees normally paid by sellers, including: any transfer taxes, and any fees and charges related to the filing of any instrument required to make title marketable. Each party shall pay its own attorney fees. Section 3.9. Sewer and Water. HRA warrants that city water is available at the lot line and city sewer is available at the curb. Section 3.10. ISTS Disclosure. HRA is not aware of any individual sewage treatment system on the property. Buyer is responsible for all costs of removing any individual sewage treatment system that may be discovered on the Property. Section 3.11. Well Disclosure. HRA's knowledge of wells on the Property is disclosed in Exhibit F. ARTICLE IV. CONSTRUCTION OF IMPROVEMENTS Section 4.1. Construction of Improvements. The Buyer shall cause the Improvements to be constructed on the Property in accordance with the Guidelines and the Construction Plans, shall cause the Improvements to meet or exceed the Minimum Market Value specified in Section 1.1, and shall maintain, preserve and keep the Improvements in good repair and condition. Section 4.2. Building Plans. No building permit will be issued by the City unless the building plans are in conformity with the Guidelines contained in Exhibit B, the Construction Plans,the required Minimum Market Value, other requirements contained in this Agreement, and all local, state and federal regulations. The Buyer shall provide the HRA with a set of building plans to be used in connection with any application for a building permit. The HRA shall, within 25 days of receipt of the building plans review the same to determine whether the foregoing requirements have been met. If the HRA determines such building plans to be deficient, it shall notify the Buyer in writing stating the deficiencies and the steps necessary for correction. Issuance of the building pennit by the City shall be a conclusive determination that the building plans have been approved and shall satisfy the provisions of this Section 4.2. Section 4.3. Schedule of Construction. Subject to Unavoidable Delays, construction of the Improvements shall be completed prior to October 1, 2013. All construction shall be in conformity with the approved Construction Plans and the Guidelines. Periodically during 4105670 JAE RC125-65 5 7-9 construction the Buyer 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 Buyer will be unable to complete construction of the Improvements in the time permitted by this Section 4.3, it may notify the Buyer and demand assurances from the Buyer regarding the Buyer's construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of any of the remedies specified in Section 8.2 of this Agreement. Section 4.4. Certificate of Completion. After notification by the Buyer of completion of construction of the Improvements, the HRA shall inspect the construction to determine whether the Improvements have been completed in accordance with the Construction Plans and the terms of this Agreement, including the date of the completion thereof. In the event that the HRA is satisfied with the construction, the HRA shall furnish the Buyer with a Certificate of Completion in the form attached hereto as Exhibit A. Such certification by the HRA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligation of the Buyer to construct the Improvements. At the time a Certificate of Completion is issued, the HRA will also provide Buyer with a $5,000 cash rebate if Buyer has obtained Green Community Concepts certification through LEED for Homes, Minnesota GreenStar,Minnesota Green Communities or Minnesota Green Path. If the HRA shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the HRA shall within 15 days of such notification provide the Buyer with a written statement, indicating in adequate detail in what respects the Buyer has failed to complete the Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the HRA, for the Buyer to take or perform in order to obtain such certification. Section 4.5. Failure to Construct. In the event that construction of the Improvements is not completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed to have occurred, and the HRA may proceed with its remedies under Section 8.2. ARTICLE V. REDEVELOPMENT ASSISTANCE Section 5.1. Establishment of Cash Escrow. Buyer acknowledges that although it is purchasing the Property at its fair market value as raw land, the HRA has incurred significant costs in acquiring and preparing the Property for development by Buyer. At Closing, Buyer will deliver to the HRA $10,000 to be placed in a non-interest bearing escrow account pursuant to the Escrow Agreement, dated as of the date hereof, between Buyer and HRA. The obligation to pay the $10,000 to the HRA will be forgiven, and the cash in the escrow account will be returned to Buyer if: (i)the Buyer receives a Certificate of Completion; and(ii)the Buyer is not otherwise in default of any of its obligations hereunder. If such have not occurred, an Event of Default shall be deemed to have occurred and the HRA may exercise its remedies under Section 8.2. ARTICLE VI. 410567v1 JAE RCI25-65 6 FINANCING Section 6.1. Financing. Within 20 days of the date of execution of this Agreement, the Buyer 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 Improvements, the HRA shall notify the Buyer of its approval. If the HRA rejects the evidence of financing as inadequate, the Buyer shall have 30 days or such additional period of time as the Buyer may reasonably require from the date of such notification to submit evidence of financing satisfactory to the HRA. If the Buyer 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. Closing shall not take place until Buyer has provided HRA with acceptable evidence of financing for construction of the Improvements. Section 6.2. Copy of Notice of Default to Lender. Whenever the HRA shall deliver any notice or demand to the Buyer with respect to any Event of Default by the Buyer in its obligations or covenants under this Agreement, the HRA shall at the same time forward a copy of such notice or demand to each holder of any Mortgage authorized by this Agreement at the last address of such holder shown in the records of the HRA. Section 6.3. Subordination. In order to facilitate obtaining financing for the construction of the Improvements by the Buyer, the HRA may, in its sole and exclusive discretion, agree to modify this Agreement in the manner and to the extent the HRA deems reasonable,upon request by the financial institution and the Buyer. ARTICLE VII. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 7.1. Representation as to Redevelopment. The Buyer 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 Buyer further recognizes that, in view of the importance of the Development to the general welfare of Richfield and the substantial financing and other public aids that have been made available by the HRA for the purpose of making the Development possible, the qualification and identity of the Buyer are of particular concern to the HRA. The Buyer 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 Buyer for the faithful performance of all undertakings and covenants agreed by the Buyer to be performed. Section 7.2. Prohibition Against Transfer of Property and Assignment of Agreement. For the reasons set out in Section 7.1 of this Agreement, the Buyer represents and agrees that prior to the issuance of the Certificate of Completion by the HRA: 410567v1 JAE RC125-65 7 (a) Except only by way of security for, and only for the purpose of obtaining financing necessary to enable the Buyer 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 Buyer, 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 HRA. ARTICLE VIII. EVENTS OF DEFAULT Section 8.1. Events of Default Defined. The following shall be deemed Events of Default under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides, any one or more of the following events: (a) Failure by the Buyer to pay when due the payments required to be paid or secured under any provision of this Agreement; (b) Failure by the Buyer to observe and substantially perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder, including the time for such performance; (c) If the Buyer shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself or Of the whole or any substantial part of the Property; (d) If the Buyer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order or decree appointing, without the consent of the Buyer, a receiver of the Buyer or of the whole or substantially all of its property, or approve a petition filed against the Buyer seeking reorganization or arrangement of the Buyer under the federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or set aside or stayed within 60 days from the date of entry thereof; or (e) If the Buyer is in default under any mortgage and has not entered into a work-out agreement with the holder of the mortgage. Section 8.2. Remedies on Default. Whenever any Event of Default occurs, the HRA may, in addition to any other remedies or rights given the HRA under this Agreement, take any one or more of the following actions following written notice by the HRA to the Buyer as provided in Section 9.3 of this Agreement: (a) Suspend its performance under this Agreement until it receives assurances from the Buyer, deemed reasonably adequate by the HRA, that the Buyer will cure its default and continue its performance under this Agreement; 410567v1 JAE RCI25-65 8 -7JI9' (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 enforce performance and observance of any obligation, agreement, or covenant of the Buyer 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 Buyer's interest in the Property, it shall, notwithstanding the foregoing, be obligated to perform the obligations of the Buyer under this Agreement to the extent that the same have not therefore been performed by the Buyer. Section 8.3. Revesting Interest in HRA Upon Happening of Event of Default Subsequent to Conveyance of Property to Buyer. In the event that subsequent to the closing or the sale of the Property to the Buyer and prior to the issuance of the Certificate of Completion: (a) The Buyer fails to begin or cause to begin construction of the Improvements in conformity with this Agreement, and such failure is not due to Unavoidable Delays; (b) The Buyer, after commencement of the construction of the Improvements, defaults in or violates obligations with respect to the construction of the Improvements, including the nature and the date for the completion thereof, or abandons or substantially suspends construction work, and such act or actions is not due to Unavoidable Delays; (c) The Buyer or its successor in interest fails to pay real estate taxes or assessments on the Property or any part thereof when due, or places thereon any encumbrance or lien unauthorized by this Agreement, or suffers any levy or attachment to be made, or any supplier's or mechanic's lien, or any other unauthorized encumbrance or lien to attach; (d) There is, in violation of Article VII of this Agreement, any transfer of the Property or any part thereof; or (e) The Buyer fails to comply with any of its covenants under this Agreement, then the HRA shall have the right upon 30 days' written notice to Buyer and the Buyer's failure to cure within such 30 days period, to re-enter and take possession of the Properly and to terminate and revest in the HRA the interest of the Buyer in the Property;provided, however,that such revestiture of title shall be subject to the lien of any prior encumbrance permitted under this Agreement, or any right of a Homeowner pursuant to a valid Purchase Agreement authorized by this Agreement. Section 8.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to the HRA is intended to be exclusive of any other available remedy or remedies, but each and 410567v1 JAE RC125-65 9 eveiy such remedy shall be cumulative and shall be in addition to eveiy 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 Buyer to exercise any remedy reserved to it, it shall not be necessary to give notice, other_than such notice as may be required in this Article VIII. Section 8.5. No Additional Waiver Implied by One Waiver. In the event of the occurrence of any Event of Default by either party, which Event of Default is thereafter waived by the other party, such waiver shall be limited to the particular Event of Default so waived and shall not be deemed to waive any other concurrent,previous or subsequent Event of Default. ARTICLE IX. ADDITIONAL PROVISIONS Section 9.1. Conflict of Interests; Representatives Not Individually Liable. No HRA officer who is authorized to take part in any manner in making this Agreement in his or her official capacity shall voluntarily have a personal financial interest in this Agreement or benefit financially there from. No member, official, or employee of the HRA shall be personally liable to the Buyer, or any successor in interest, for any Event of Default by the HRA or for any amount which may become due to the Buyer 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 Buyer as though fully set forth herein. Section 9.3. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt requested or delivered personally: (a) As to the HRA: Richfield HRA Executive Director 6700 Portland Avenue South Richfield, MN 55423 410567v1 JAE RCI25-65 10 "7rlL (b) As to the Buyer: Colette Therese O'Shea 924 Fremont Avenue St. Paul, MN 55106 or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section 9.3. Section 9.4 Counterparts. This Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. 410567v1 JAE RC125-65 11 IN WITNESS WHEREOF, the parties have 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 , the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate and politic under the laws of Minnesota, on behalf of the authority. Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 20 , by , the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate and politic under the laws of Minnesota, on behalf of the authority. Notary Public 410567v1 JAE RC125-65 12 Signature Page of Buyer to Contract for Private Development [BUYER] leCti-e /7),S ..------- .. STATE OF MINNESOTA ) �/ ) SS COUNTY OF I ennep n ) The foregoing instrument was acknowledged before me this I 48-' day of -30,(10,r1 , 2013 , by cis^le.i4-e, O'Shea./ 511• k ers�ci1 ( .�v er , -fires€ taI-status]:_ `� P / . / / • CHRISTINE R.COSTELLO Nair Public r NOTARY PUBLIC•MINNESOTA \<'°�°V r My Commission Expires Jan.31,2016 13 410567v1 JAE RC 125-65 eft EXHIBIT A FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that , has fully and completely complied with its obligations under that document entitled "Contract for Private Development", between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota and , dated , filed as Document No. with respect to the construction of the approved construction plans at , legally described as and is released and forever discharged from its obligations under such Contract. DATED: THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY RICHFIELD By: Its: Chairperson By: Its: Executive Director STATE OF MINNESOTA ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of , 20_, 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 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 (612) 337-9300 A-1 410567v1 JAE RC125-65 1`1 EXHIBIT B PROGRAM GUIDELINES-LOT SALE PROGRAM RICHFIELD REDISCOVERED PROGRAM GUIDELINES LOT SALE PROGRAM REVISED: NOVEMBER 15, 2010 B-1 410567v1 JAE RC125-65 H9 9 CONTRACT FOR PRIVATE DEVELOPMENT 1 I. PROGRAM OBJECTIVES 3 II.DEFINITIONS 3 III.PROGRAM BASICS 4 IV.APPLICATION REQUIREMENTS 4 V.ADDITIONAL PROGRAM REQUIREMENTS 5 VI. HOUSE DESIGN AND SITE DEVELOPMENT REQUIREMENTS 6 A. New House Standards 6 B.Site Standards 6 C.Construction Requirements 7 D.General Standards 7 E.Green Community Concepts 8 VII. CITY REVIEW PROCEDURE 8 VIII. LOT SALE TO BUILDER OR BUYER 9 IX.PROGRAM MARKETING 10 X.DATA PRIVACY 10 B-2 410567v 1 JAE RC 125-65 d'D This document has been developed as a guidance tool for program administration. It should not be interpreted as constituting any contractual agreement or liability by the City or Housing and Redevelopment Authority (HRA). The HRA may modify or divert from the guidelines where it deems appropriate. I. Program Objectives 1. To remove substandard, functionally obsolete housing on scattered sites throughout the City and replace with new, higher-valued housing. 2. To eliminate the blighting influence of substandard housing, thus improving residential neighborhoods. 3. To alleviate the shortage of housing choices for families. 4. To facilitate the construction of larger three- to four-bedroom, owner-occupied homes designed for families. 5. To facilitate the construction of multi-unit, owner-occupied homes designed to expand family opportunities or to serve elderly residents. These objectives will be achieved through the sale of lots by the Housing and Redevelopment Authority to Builder/Buyer teams for the development of newly constructed homes. IL Definitions Applicant: An individual who submits an application for a Richfield Rediscovered lot. The Applicant may be a Builder or the end Buyer. If the Applicant is a Builder, an end Buyer should be identified. If the Applicant is the Buyer, the Applicant must submit a signed contract between the Builder and the Buyer to build a home on the lot identified in the application. Buyer.An individual(s)who will build,own and occupy a new housing unit in Richfield. The Buyer will occupy the property and not offer it for rent. The Buyer may not also function as the Builder on a Richfield Rediscovered project. The Buyer and Builder must be unrelated separate legal entities. A speculative project by a Buyer may be considered if all other program requirements can be met. However, neither the Buyer, the Buyer's Builder or Builder's subcontractors, or the Builder's realty agents may occupy or purchase the property. Buyers, unless licensed in the trade specified, may not put any sweat equity into the construction of the foundation, wall/roof framing, shingling, exterior work, electricallplumbing/HVAC systems or interior carpentry. Builder. Contractor who has signed a contract with the Buyer to build a home on the lot identified in the application. Contract for Private Development: A contract between the HRA and the Builder or Buyer that establishes the conditions under which the lot will be sold and the proposed house will be developed. Green Community Concepts Plan: A written plan indicating how the proposed development will incorporate green building features and concepts. Priority will be given to projects that incorporate green building features. HRA: Housing and Redevelopment Authority in and for the City of Richfield. Lot List: A listing of available lots for sale. Information regarding the lot location, size and sale price is provided. B-3 410567v1 JAE RC125-65 III. Program Basics 1. HRA publishes a list of available vacant lots for purchase including sale price and development criteria. 2. Builder/Buyer team proposes a plan for a lot consistent with development criteria and program requirements and makes an offer to purchase. 3. HRA approves lot sale. 4. Lot is sold to Builder or Buyer. 5. Builder constructs new home. 6. Projects must be completed within one year of HRA approval of the project. IV. Application Requirements The following must be submitted for application to the program: 1. $525 application fee An application fee must be paid at the time of application. This fee is non-refundable and is not part of the lot price. 2. Application Form 3. Construction Plans The layout of all levels, including basement and unfinished space, must be provided. 4. Elevations Elevations of all four sides of the house, including view of garage shall be provided. Colored renderings may also be required. 5. Site plan The site plan shall indicate the location of the new house,walkways and garage. 6. Landscaping plan A landscaping plan must indicate the location and type of trees, shrubbery, flowers and landscaping materials (e.g. rocks, mulch)and any existing trees to be preserved. 7. Detail of construction materials to be used on the project. 8. Green Community Concepts Plan The plan should indicate what Green Community Concepts will be incorporated into the project. 9. Construction timeline Construction must be completed with one year of the purchase of the property. 10. Signed contract with Builder 11. Purchase agreement If the Builder plans to purchase the lot, the application must include a valid purchase agreement between the Buyer and the Builder for the lot to be developed. 12. Financial capability statement A statement from a financial institution indicating willingness to provide sufficient construction capital to complete the project must be provided. B-4 410567v1 JAE RC125-65 Pd 13. Builder References a. Five previous customers b. Three major suppliers,one being the construction supplier c. Building inspectors from two cities where the Builder has constructed new housing within the past three years 14. Proof of Builder's Comprehensive General Liability with Property Damage Protection. 15. Proof of sufficient worker's compensation insurance coverage by the Builder. 16. Written warranty program To be provided to the Buyer, which guarantees at a minimum, warranted repairs as required by Minnesota State Statute. V. Additional Program Requirements • 1. The Applicant is expected to meet with an architectural/design consultant prior to submitting an application. A two-hour consultation is available through the HRA at a cost of$25 to the applicant. See the City's website (www.cityofrichfield.orq) for more information. This requirement may be waived if the applicant is using an architect for the project. 2. The site will be sold to the Builder or Buyer at the fair market value as appears on the Lot List. The HRA will not accept offers for less than the established sale price. 3. A Contract for Private Development is signed by the HRA and the Builder or the Buyer. The Contract is a standard form which includes conditions for acquisition and development of the property. The Contract will also establish a minimum required end-value for the property based on construction estimates provided by the applicant. The Builder or Buyer will be expected to agree to the terms of the Contract before the application can be scheduled on the HRA agenda. 4. All lots will have a required minimum end value that will be established in the Contract for Private Redevelopment. 5. The lot can be sold to either the Builder or the Buyer. If the lot is sold to the Builder, the Builder will pay cash for the lot at closing and submit a Letter of Credit or cash escrow for$10,000. The Letter of Credit must be from a financial institution incorporated in the Twin Cities metropolitan area. The cash escrow will be held in a non-interest bearing account. The Letter of Credit or cash escrow will be released once the construction and landscape work are completed and a final Certificate of Occupancy is issued. 6. If the lot is sold to the Builder and the Builder fails to complete construction as approved by the HRA, the Letter of Credit or cash escrow may be drawn upon by the HRA. In addition, the Contract for Private Development will contain a reverter provision, which will enable the HRA to reclaim ownership of the property in the event of a default in the Contract. In the event that the Builder fails to complete construction, the HRA may exercise its rights under the reverter provision, as well as draw upon the Letter of Credit or cash escrow. 7. If the lot is sold to the Buyer,the Buyer will pay cash for the lot at closing. To secure the HRA's interests in the Contract for Private Development, the Buyer will provide $10,000 to be deposited in escrow or a $10,000 mortgage in favor of the HRA, which will be filed on the property. The mortgage will be in first position. The HRA may consider subordinating its interest in appropriate cases. In addition, the Contract for Private Development will contain a reverter provision, which will enable the HRA to reclaim ownership of the property in the event of a default in the Contract. 8. If the lot is sold to the Buyer and the Buyer fails to complete construction as approved by the HRA, the HRA may exercise its rights provided in the mortgage or exercise its rights under the reverter provision in the Contract for Private Development. B-5 410567v1 JAE RC125-65 VI. House Design and Site Development Requirements The development of all sites shall meet the development criteria listed below, as reviewed and approved by the HRA. To maximize the development of a given lot, the HRA reserves the right to explore all development options without obligating the HRA to support any specific proposal, idea or solicitation. Housing design is a critical element of the program. Siding materials, exterior fagade presentation, roof, window, siding and building line variability, finished landscape, interior space function and use are all important issues of design to the HRA. The design requirements were created to ensure that the homes built on the HRA-sold lots blend in with the surrounding neighborhood and respond to the specific concerns of the HRA. All new houses built under the Richfield Rediscovered Program must meet the requirements of the City's Zoning Code and additional criteria, as listed in this document. A. New House Standards 1. New dwelling must be owner-occupied. 2. Three finished bedrooms are required. 3. Two finished bathrooms are required. 4. Two-car garage is required. 5. A full basement is required, unless the selected design results in a split-level or a garden-level type of basement. In the case of an "accessible" house, a basement may be omitted if it would otherwise prohibit accessible design elements. B. Site Standards 1. After construction, the site must be fully landscaped, including plantings around the foundation. The entire grounds shall be landscaped and be aesthetically pleasing in all seasons. Land forms and plant materials shall be used to define the site and blend neatly with adjoining properties. Specific lot line blending requirements may be required, as appropriate,for specific sites. At a minimum, the applicant must meet the "Landscaping and Screening Requirements" in the City's Zoning Code under Section 544.03, Subd.4, General landscaping requirements and Subd. 5, Residential sites. The code is available on the City's website: http://www.ci.richfield.mn.us To the greatest extent possible, existing trees should be preserved. Any trees removed must be replaced (they do not have to be the same species or in the same location) and should be labeled on the required landscape plan. 2. Utility meters shall be screened from street view and locations must be specified on plans. 3. Site drainage should be accommodated on the site so that water is directed away from the new home and the neighboring properties. Neighboring properties must not be disturbed by the creation of drainage swales. Specific storm water management requirements may be required, as appropriate, including the addition of gutters or on-site management for specific sites. Construction and the finished structure must not have a detrimental impact on storm water drainage patterns in the neighborhood. 4. All air conditioning units must be located in the rear yard of the house, or as approved by the HRA. B-6 410567v1 JAE RC125-65 7LJ C. Construction Requirements 1. Existing trees identified on the landscape plan as being preserved, must be protected during construction. A tree wrap with board reinforcements shall be used on trees directly adjacent to active grading and construction areas. Damaged or destroyed trees must be replaced. 2. The construction site, neighboring properties and adjacent public streets shall be kept free of construction debris at all times. 3. No construction workers, construction equipment or construction material shall encroach upon neighboring properties. 4. The property shall have a new sanitary service line installed to the City sanitary sewer main consisting of schedule 40 PVC or equivalent. If there is an existing 6"sewer stub at the property line, it must be lined with 4" schedule 40 PVC or equivalent to the City's sanitary main, and it must include a "donut"at the end with cement. The line must be televised after installation to ensure the following: 1. There are no obstructions in the line. 2. The PVC liner is not protruding into the City's sanitary sewer main line. D. General Standards 1. The value of the new home must meet or exceed the minimum value specified in the Contract for Private Redevelopment. 2. All homes in the Richfield Rediscovered Program must be stick-built or high-quality modular, new construction. 3. Exterior materials (siding, soffit, doors and windows) should be low-maintenance and durable. Brick, aluminum, vinyl and fiber cement siding are preferred. Natural cedar lap is acceptable if properly stained or painted. Hardboard panels or hardboard lap siding are prohibited. Roof valleys must have metal valleys and not be woven. 4. Unit height and mass of the new house shall be compatible with the scale of the surrounding homes in the neighborhood. 5. Plans must present a balanced and pleasing distribution of wall, door and window areas from all views. 6. The dominance of the garage door must be minimized through placement, architectural detail, door design and utilization and design of windows. Garages, where the garage door faces the street, shall not be located closer to the front lot line than the foremost facade of the principal building facing the front property line. Garage sidewalls that face the street should appear to contain habitable space. This can be accomplished by incorporating windows and other design elements into the garage wall that are in character with the remainder of the dwelling. For lots that have alley access,the garage should be oriented to access the alley. 7. All Construction Plans must have been prepared in consultation with an architect or qualified draftsperson. All requirements by the Building Inspections Division must be met. 8. All Richfield Rediscovered houses must meet or exceed Minnesota Energy Code requirements. 9. All new homes shall be built to provide high quality sound insulation. Recommendations for sound insulation measures may be provided on a site-by-site basis. All construction must conform to current sound attenuation building standards for properties located in 65-69 and 70-74 DNL zones. B-7 410567v1 JAE RC125-65 9. If a variance is required to construct the proposed development, the HRA may, at its sole discretion, choose to reject the application. 10. If the HRA accepts an application that needs a variance(s), sale of the property will be contingent upon the applicant obtaining the necessary variance(s). The Applicant is responsible for applying for the variance(s)at its own expense. The HRA,as owner of the property,will, however, cooperate with the application. E. Green Community Concepts Priority will be given to projects incorporating the green community concepts listed below. Any concepts the applicant would like considered during the application process should be explained in a written plan submitted with the application. A$5,000 rebate will be provided to the Applicant for projects that obtain certification through LEED for Homes, Minnesota GreenStar or Minnesota Green Communities. 1. Protect and conserve water and soil. To reduce water consumption, consider the use of water- conserving appliances, fixtures, and landscaping. Steps should be taken to minimize the loss of soil and sediment during construction and occupancy to reduce storm-water sediment and air pollution. 2. Minimize energy consumption. Reduce energy consumption by taking advantage of natural heating, cooling and day lighting, and by using energy-efficient appliances, equipment and lighting. 3. Enhance indoor environmental quality. Use non-toxic materials, ventilation and exhaust systems, and moisture control products and systems. • 4. Use environmentally-preferable materials and resources. Use locally-produced, salvaged and/or manufactured materials, products with recycled content or from renewable sources, recyclable or reusable materials, and low-VOC-emitting materials. 5. Reduce waste. Reduce and manage wastes generated during the construction process and operation of buildings. If demolition occurs, sort and recycle leftover materials and debris. VII. City Review Procedure 1. Applicant reviews proposed project with HRA staff before plans are finalized. 2. Applicant submits application, plans, and application fee at least 45 days prior to the HRA meeting. 3. An application is considered to be received when delivered personally to HRA staff in a pre- arranged meeting. Following this meeting and upon receipt of the application fee, the lot will be considered reserved and no additional applications will be accepted for the proposed lot while the application is under review. B-8 410567v1 JAE RC125-65 4. If an application is determined to be incomplete, the applicant will have 30 days to submit a complete application. If a complete application is not received within 30 days, the application will be rejected and the lot will be made available for new applications. 5. HRA staff review application to ensure conformance with House Design and Site Development Requirements. 6. HRA staff may reject or accept an application at its sole discretion. 7. The Builder or Buyer executes a Contract for Private Redevelopment. 8. An application is determined to be complete and the Contract executed at least three weeks prior to the HRA meeting. 9. HRA staff publishes a legal notice of the public hearing and prepares a report and recommendation for the HRA. 10. HRA reviews application,conducts a public hearing, and takes action at the HRA meeting. 11. If approved,the Contract for Private Redevelopment is executed by the HRA. VIII. Lot Sale to Builder or Buyer 1. Upon approval of the application by the HRA, a closing will be scheduled between the HRA and the Builder or Buyer. 2. The HRA will prepare all statements, affidavits, documents, and general release forms required for closing. 3. The Builder applies for a building permit prior to closing. The Builder is responsible for acquiring the necessary building permits with the City of Richfield Building Inspections Division. If changes to the plans are required by the Inspections Division,the applicant must notify HRA staff. 4. The Applicant provides evidence to HRA staff that all requirements to proceed with construction, as determined in the Contract for Private Redevelopment, have been met. 5. The HRA conveys the property to the Builder or Buyer by Quit Claim Deed.The site will be sold to the Builder or Buyer at the fair market value as appears on the Lot List. 6. At closing with the Builder, the Builder provides a Letter of Credit or cash escrow for $10,000 to the HRA. 7. At closing with the Buyer, the Buyer signs a mortgage and promissory note for$10,000 in favor of the HRA or provides a cash escrow in the amount of$10,000. 8. Upon completion of the project and closing on the sale of the Property to the Homeowner, the Letter of Credit or cash escrow is released to the Builder or the Buyer's mortgage is released. A Certificate of Completion is executed by the HRA, releasing the obligations of the Contract for Private Redevelopment. B-9 410567v1 JAE RC125-65 IX. Program Marketing Richfield Rediscovered program marketing is entirely at the discretion of the HRA. It may include the following: 1. Buyer Solicitation. The HRA may market the program to potential Buyers through promotional articles, direct mail, the Internet, or other methods as deemed appropriate. Buyers may be any financially capable individual or household, including first-time buyers, move-up buyers or empty- nesters. 2. Public Promotion. a. The HRA will periodically provide information about the program through articles in city publications, on the City's web site, on the Community Cable channel, or via press releases to promote community awareness. b. A public open house may be held to provide an opportunity for residents and other interested parties to collectively view the finished homes. The Parade of Homes Fall Showcase and Spring Preview may also accomplish this. A program information package will be mailed to all interested participants. The information packet may include the following: 1. Lot List 2. Richfield Rediscovered Lot Sale Procedural Guidelines 3. Application Form 4. Sample Contract for Private Redevelopment X. Data Privacy All information secured through the program is subject to the Data Privacy Act. B-10 410567v1 ME RC125-65 EXHIBIT C QUIT CLAIM DEED STATE DEED TAX DUE HEREON: $ Date: FOR VALUABLE CONSIDERATION, Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, Grantor, hereby conveys and quit claims to , Grantee, real property in Hennepin County, Minnesota, described as follows: , according to the map or plat thereof on file or of record in the office of the Hennepin County Recorder. This deed is subject to that certain Contract for Private Development between Grantor and Grantee, dated , 20 (the "Contract"), recorded , 20_, in the office of the Hennepin County Recorder/Registrar of Titles as Document No. . The Contract provides that the Grantee's rights and interest in the real property described above are subject to the Grantor's right to re-enter and revest in Grantor title to the Property under conditions specified therein, including but not limited to termination of the Grantor's right to re-enter and revest upon issuance of a Certificate of Completion as defined in the Agreement. (if more space is needed, continue on back) together with all hereditaments and appurtenances. ❑The Seller certifies that the seller does not know of any wells on the described real property. DA well disclosure certificate accompanies this document. ❑I am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD Affix Deed Tax Stamp Here By Its Chairperson By Its Executive Director C-1 410567v1 JAE?RC125-65 STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this day of , 20 , by , the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the corporation, Grantor. NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAK) SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this day of , 20 , by , the Executive Director, of Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the corporation, Grantor. SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAK) Check here if part or all of the land is Registered(Torrens)❑ Tax Statements for the real property described in this instrument should be sent to (include name and address of Grantee): This instrument drafted by: Kennedy& Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 C-2 410567v1 JAE RC125-65 • 3D EXHIBIT D WELL DISCLOSURE ❑ The Seller certifies that the seller does not know of any wells on the described real property. ❑ A well disclosure certificate accompanies this document. [form attached] X The status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. D-1 410567v1 JAI:RC125-65 • Minnesota Department of Health Well Aox47reat Section P.O.Box 639975 St.Paul,Minnesota 55164-0975 M • 651-201-1537 or S00-383-9805 I1;71:ii'1 I RR lTtM wtr.t.hcatth.state.mn.nsfdirs'e 1!'wells WELL DISCLOSURE STATEMENT Prior to signing an agreement Io sell or transfer real property.the seller must always disclose in writing(well disclosure statement)the location and status(well status defined below)of all wells on the property to the buyer. along with the legal description and county of the property.and a sketch map showing the location of each well or indicate there are no wells on the property. WELL DISCLOSURE CERTIFICATE A Well Disclosure Certificate is required to be filed when there are wells on the property. • At the time of closing.the well disclosure statement information,along with the property buyers name and mailing address.must be provided on a Well Disclosure Certificate i WDC)form.When recording a deed or other instrument of conveyance requiring a Certificate of Real Estate Value(CRV).a completed WDC must be tiled with the county recorder.including a$50 fee payable to the county recorder. • If there is a previously tiled WDC and the number of wells and or the well status has changed.a new WDC must be filed.You may search for previously filed\ZDCs at: ivwu hcalth.state.,nn.trs/dims/ehnrells!diselosu es%disclaimer.html. • • If the number and status of cells on the property remain unchanged since the previously filed WDC'.a statement Hurst be placed on the deed or other instrument of conveyance that reads 'I am familiar u'itll the property described in this instrument and I cerrif)'that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate."This statement must be certified by the buyer or seller and no WDC is required. If there are no wells on the property,a Well Disclosure Certificate is not required to be filed.However.the Seller must certify a statement on the deed or other instrument of conveyance that reads "The Seller certifies that the Seller does not know of any wells on the described real property." IN.STRU'CTIONS FOR COMPLETING THE WELL DISCLOSURE CERTIFICATE A 550 fee must be included when submitting this form to the county recorder's office.The fee is to be paid by the buyer or person filing the deed.Please make the check payable to the County Recorder,A copy of this WDC should be provided to the property buyer at the time of closing. PROPERTY.BUYER,AND SELLER INFORMATION A. PROPERTY LOCATION LEGAL DESCRIPTION-Provide the county name:"unpinned"a metes and bounds description(quartile[one quarter section is required]or government lot.section.township.and range number): and or"platted-(lot number and or block number.and addition name):property street address(if applicable).and city(this is the physical location of the property not the mailing address):property ID number or parcel number(optional).Attach a complete legal description of the property. B. PROPERTY BUYER\TAILING ADDRESS AFTER CLOSING-Provide the buyer's full name(or company name if buyer is a company). full address.and phone number(including area code).Be sure to include a complete mailing address.If the property is jointly owned,provide the name and complete mailing address of the contact person. Seller's Name—Please provide the name of the seller in space provided(please print). F-2 410567v1 JAE RC125-65 '1 - 32 • C. CERTIFICATION BY SELLER-The seller(oi'designated representative)should sign this certificate before it is submitted to the county recorder's office.If the seller is unable to sign the document.the buyer(or designated representative)may sign the certificate before it is submitted to the county recorder's office. D. CERTIFICATION BY BITER-If the seller is unable to sign the document.the buyer(or designated representative)may sign the certificate before it is submitted to the county recor'der's office.Where deeds are given in fulfillment of a Contract for Deed the«•'DC must be signed by the buyer or the person authorized to act on behalf of the buyer. Signature Required-There must be at least one signature on the certificate. WELL INFORMATION E. WELL LOCATION LEGAL DESCRIPTION-For each well being disclosed the following physical location information is required: • county name.quartile one quarter section is required). section.township.and range number: andior • county name.government lot,section.township.and range number:and/or • county name.lot number and or block number.and addition name WELL STATUS INFORMATION-Indicate the status of each well.Check only one box. In Use-A well is"in use"if the well is operated on a daily.regular.or seasonal basis.A well"in use"includes a well that operates for the purpose of irrigation.fire protection.or emergency pumping. Not In Use-A well is"not in use"if the well does not meet the definition of"in use"above.and has not been sealed by a licensed well contractor. • If the well is-not in use."is there a Minnesota Department of Health 1 MDH)variance for this well?Please provide the variance tracking number(TN i.if known. • If the well is"not in use."is there an MDH maintenance permit for this well?Please provide the permit number. if known. Sealed-A well is"sealed"if a licensed well contractor has completely filled a well by pumping grout material throughout the entire well after removal of any obstructions from the well.A Well and Boring Sealing Record must be on tile with the MDH.Contact the MDH to verify if a sealing record is on file.A well is"capped"if it has a metal Or plastic cap or cover which is threaded.bolted.or welded onto the top of the well to prevent entry into the well. A"capped"well is not a`sealed"well. Important Well Status Information: • The MDH will follow-up with the property buyer regarding any wells disclosed as-not in use."If a well is"not in use."the property owner must either return the well to"in use."have the well-sealed"by a licensed well contractor.or obtain an annual maintenance permit from the Is-IDH for$1'5. • Maintenance permits are not transferable:If a well is"in use."a maintenance permit is not required. • If the well has been-sealed"by someone other than a licensed well contractor or a licensed well sealing contractor.check the well status as"not in use." Additional Well Information-Provide the following information.if known: Minnesota Unique Well Number or Sealing Record Number.date of well construction or sealing.and name of licensed well contractor. SKETCH MAP-Complete the sketch map as instructed on the«/DC'.The location of each well iust be indicated. If the location of a well-is not known.have the well located by a person qualified to locate wells.such as a licensed well contractor. If you have questions.please contact the MDH Well Management Section at 651-201-4587 or 800-3S3-9808. To request this document in another format.call 651-201-4600.Deaf and hard-of-hearing: TTY 651-201-5797. Visit the MDH Well Management Section.Well Disclosure Program website at: witwr.healtdr.state.nm.us/dins/ehAti'elIs/disclosures. F-3 410567v1 JAE RC125-65 COUNTY USE ONLY MDII USE ONLY - MINNESOTA DEPARTMENT OF HEALTH Well Management Section.P O.Box 64975.St.Paul.Minnesota 55164-0975 651-201-1557 or500-383-9S08 WELL DISCLOSURE CERTIFICATE PLEASE TYPE OR PRINT ALL LlTORFL4TION Person filing deed must include a$50 fee payable to the county recorder. A. PROPERTY LOCATION LEGAL DESCRIPTION Attach a legal description of the property. County Section No. Township No. Range No. Quarter(or Ciovenunent Lot) Hennepin ' Lot No(s). Block No. Addition Name Chitlot Tract Property Street Address C'itvToumship ZIP Code Property ID No./Parcel No.(optional) Richfield 55423 B. PROPERTY BUYER MAILING ADDRESS AFTER CLOSING First Name Middle Initial Last Name Company Name(if applicable) Mailing Address Mailing Address City - State/Province ZIP Code Telephone No.(including area code) Provide Name of Seller(please print) Housing and Redevelopment Authority in and for the City of Richfield C. CERTIFICATION BY SELLER I certify that the information provided on this certificate is accurate and complete to the best of my knowledge. Signature of Seller or Designated Representative of Seller Date D. CERTIFICATION BY BUYER For fulfillment of a contract for deed,the buyer or person authorized to act on behalf of the buyer,must sign a Well Disclosure Certificate if there is a well on the property. In the absence of a seller's signature,the buyer,or person authorized to act on behalf of the buyer may sign this Well Disclosure Certificate.No signature is required by the buyer if the seller has signed above. Based on disclosure information provided to me by the seller or other available information.I certify that the information on this certificate is accurate and complete to the best of my knowledge. Signature of Buyer or Designated Representative of Buyer Date IMPORTANT NOTE: The Minnesota Department of Health(MDH)will follow-up with the property buyer regarding any wells disclosed as not in use.If a well is not in use.the property owner mint either return the well to use.have the well sealed by a licensed well contractor.or obtain an annual maintenance peanut from the MDH for$175.A copy of this Well Disclosure Certificate should be provided to the property buyer at the time of closing. F-4 410567v1 JAE RC125-65 tt�lr>Q = � MINNESOTA DEPARTMENT OF HEALTH WELL DISCLOSURE CERTIFICATE PL Indicate MDH PLEASE TYPE OR PRIVTALL N Total Number of LI FOR TION Indils on Property rtntirtriatrritttr� Fill out a separate well information page if more than two o wells are located on the property. E. WELL LOCATION LEGAL DESCRIPTION WELL=1—If the property legal description has more than one section.townslup.or range number:quarter(or government lot):or lot or block number:provide specific legal description information regarding the Irlwsical location of this well. County Section No. Township No. Range No. Quarter(or Govenunent Lot) Hennepin Lot No. Block No. Addition Name Outlot Tract MN Unique Well No.or Sealing Record No. WILL STATUS(Check only one box) Date of Well Construction or WELL 1S: ❑ In Use(1) ❑ Not in Use(2) 0 Sealed by Licensed Well Contractor(3)* Sealing *Can 3WDH to verif}-sealing record is on fde. Name of Licensed Well Contractor If the well has been sealed by someone other than a licensed well contractor or a licensed well sealing contractor.check the well status as not in use. Also see"I MPORTAN.T NOTE-on page 1. If well is not in use,is there an MDH variance for this well? If the well is not in use-is there an Ml)H maintenance permit for ❑ Yes ❑ No this well? ❑ Yes ❑ No If yes.provide the variance tracking number(TN)_. _ If yes.provide the peanut number WELL 1+2—If the property'legal description has more than one section.township.or range number:quarter(or government lot):or lot or block number:provide specific legal description information regarding the physical location of this well. County Section No. Township No. Range No. Quarter(or Government Lot) Lot No. Block No. Addition Name Chulot Tract AN Unique Well No.or Sealing Record No. WILL STATUS(Check only one box) Date of\Fell Construction or WELL IS: ❑ In Use(1) ❑ Not in Use(2) ❑ Sealed by Licensed Well Contractor(3)' Sealing 'C'all MDII to verify sealing record is on file. Name of Licensed Well Contractor If the well has been sealed by someone other than a licensed well contractor or a licensed well sealing contractor.check the well status as not in use. Also see-IMPORTANT NOTE"on page I. If well is not in use,is there an MDH variance for this well? If the well is not in use,is there an MDH maintenance pernut for ❑ Yes ❑ No this well? ❑ Yes ❑ No If yes.provide the variance tracking number(TN) If yes.provide the permit number SKETCH MAP—Sketch the location of the well(s)and include estimated distances from roads.streets.and buildings.If more than one well on property,use the well location number above to identify each well.The location of the well(s)Must be provided.If the location of a well is not known.have the well located by a person qualified to locate wells,such as a licensed well contractor. Information provided on this form is classified as public information under Minnesota Statutes,Chapter 13. To request this document in another format,call 651-201-4600.Deaf and hard-of-hearing: TTY 651-201-5797. Visit the MDH Well Management Section.Well Disclosure Program website at: uuar,henith.state.,nn,trs!divs eltivellsdisclosures. 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V / \ 1_11 . 1111 el Joshusa Klem&Colette Oshe—a 7537 Dupont Ave. Richfield,Mn 55423 I I . 1-1(44T5 i ,J1-YlsvPF---4L47 __________ IRt-V_I:vs-, 1 <f) • ft : 1 I I ..-,cowittuR----- — _ tterfiv-r-• \ _._ - 1:i-P - 1 1 i ; ' i I I, 1111 I -- i I ,,,, ..,_ '14Atzth-t•-,2 ,, \At 1 i phase il I\ ILI .-17WALL-1‘2:41URE'Z't R., I •EAC.r-SS'E-C, 0 I I--: 1111111111 sAhee.24title ,r— o, _1 •___:1_ --- MI? Main FIctrir • 1 : I I , AGENDA ITEM#: 8 REPORT#: 15 magi" STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 23, 2013 REPORT PREPARED BY: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NAME,TIME REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: E ,14•4 1 SIG ATUR Mr REVIEWED BY EXECUTIVE DIRECTOR: h ® � / '‘ I ITEM FOR HRA CONSIDERATION: The appointment of membership in a Task Force to participate in the preparation of Richfield's Housing Vision. I. RECOMMENDED ACTION: By Motion: Appoint the membership of a Task Force to participate in the preparation of Richfield's Housing Vision. II. BACKGROUND At a joint City Council, Housing and Redevelopment Authority (HRA) and Planning Commission Worksession on August 20, 2012, staff proposed going through a community process to establish a Housing Vision that could help guide future housing programs and development. As the result of seeking proposals from consultants to help facilitate the Housing Visioning process, the HRA selected the firm of Stantec (led by John Shardlow and Tina Goodroad) at its November 19, 2012 meeting. As part of their proposal, Stantec suggested the formation of a task force to participate in six to eight workshops and presentations over a period of several months. Mr. Shardlow has suggested that the ideal Task Force size would be 12-20 people with a diverse background and a willingness to be open-minded. 01232013 Housing Vision Task Force Appointment As indicated in HRA Memorandum #52 (October 11, 2012 - attached), staff began the process of identifying Task Force members last fall. Through the solicited input from elected and appointed leaders, responses from articles placed in the Richfield Sun Current and Patch and notices posted at public locations in the community, 24 people have submitted a form indicating their interest in serving on the Task Force. The attached list gives much of the information provided by the Task Force applicants (some information has been excluded for privacy reasons). The following are some characteristics of the Task Force applicants: • 4 are 18-30 years old; • 12 are 31-50 years old; • 6 are 51-70 years old; • 2 are 71+ years old; • 22 are homeowners; • 2 rent their homes; • 11 have school aged children; • 3 are members of Richfield's Attainable Housing Committee; • 4 are members of"Richfield Commoners United"; • 2 are teachers; • 5 are employed in areas of real estate sales, design, development and/or finance; • 2 are members of the Clergy. Both staff and the consulting facilitator feel that a size of 24 members would result in meetings that would be difficult to manage and in an inability to get full participation and feedback from all members at each meeting. For these reasons, staff is recommending that: The Attainable Housing Committee (3 applicants: Camillo DeSantis, Susan Rosenberg and Tom Zarth) and the Richfield Commoners United (4 applicants: Ghislaine Ball, Joe Hoover, Barry LeBlanc and Bob Olson) each designate one member to serve on the Task Force. Andre Thibault and Kory Kutz be identified as "advisory" or "alternate" members, as they appear to be largely unavailable at the suggested meeting days/times. With these recommendations, the Task Force would be sized at an ideal 17 members. III. BASIS OF RECOMMENDATION A. POLICY The HRA and City Council have identified a need to create a Housing Vision to help guide future housing programs, policies and development. • On November 19, 2012 the HRA accepted a proposal from Stantec to facilitate a Housing Visioning process that requires the formation of a Task Force. B. CRITICAL TIMING ISSUES • It is hoped that the Visioning Process can begin in February. C. FINANCIAL • The only financial obligation specific to the formation of a Housing Task Force would be for snacks and refreshments and possibly childcare during Task Force Meetings. D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION(S) • Appoint a different (smaller) group of active members from the list of people who have submitted an "interest form" in serving on the Task Force. • Direct staff to attempt additional outreach to identify a larger pool of applicants. V. ATTACHMENTS • HRA Memorandum #52 (October 11, 2012). • Summarized list of Housing Visioning Task Force applicants. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Housing Visioning Task Force applicants were made aware of this meeting and some may be in attendance. CITY OF RICHFIELD, MINNESOTA Office of City Manager October 11, 2012 Council Memorandum No. 112 HRA Memorandum No. 52 The Honorable Mayor Housing & Redevelopment and Authority Commissioners Members of the City Council City of Richfield Subject: Housing Vision Council Members and Commissioners: At a joint City Council, Housing and Redevelopment Authority (HRA) and Planning Commission Work Session on August 20, 2012 staff proposed going through a community process to establish a Housing Vision that could help guide future housing programs and development. At that meeting, staff suggested that a facilitator experienced in leading such a process would be helpful to ensure that the discussion could be open and engaging to a variety of participants with a variety of viewpoints. After speaking with a number of potential facilitators, staff has asked John Shardlow(of the company Stantec) to provide a proposal for facilitating the Housing Vision process. The final proposal will be provided to policy makers once it is received (anticipated within the next ten days). In discussions with Mr. Shard low, he is recommending that the Housing Visioning process be led by a Task Force of approximately 12 —20 people who would meet for six two-hour meetings over a period of about three months. Some of the "stakeholders" that staff is suggesting as participants would include: • Parent of school aged children • Leader in the faith community • Youthful Renter • Attainable Housing Committee • Youthful Homeowner Member • Senior Renter • Member of the Richfield • Senior Homeowner Apartment Managers Association • Empty Nester (RAMA) • School Board Member or School • Social Service Provider Faculty • Member of Richfield Commoners • Real Estate Agent United Ideally, many Task Force members would fit more than one of these descriptors. Staff is in the process of identifying individuals who might fit these descriptions and would welcome suggested names from policy makers. In addition to Task Force members, elected and appointed officials, as well as the general public would be invited to attend the Housing Visioning sessions. If this three month process were to start immediately, its progress would be interrupted by the holiday season. For this reason, staff is suggesting that the Task Force begin their formal process after January 1. Staff has also begun identifying "experts"that would serve as speakers/resources to the Task Force; in some cases, staff has had conversations with these individuals to determine their availability and interest in participating. Among of these experts are: Myron Orfield (University of Minnesota Law Professor and regional growth expert), Gordon Hughes (former Edina City Manager who presents a dialog about the future of housing entitled, "The New Normal") and Cathy Bennett (Urban Land Institute/Regional Council of Mayors Consultant). As a next step, the Richfield HRA will be asked to consider entering into a Professional Services Agreement with Stantec to serve as the Housing Visioning facilitator at its November meeting. Staff is recommending the HRA take on the authorizing role as the HRA is the body specifically charged with developing a housing policy and because the 2013 proposed HRA budget includes funding for these costs while the proposed 2013 City budget does not. In the coming weeks, staff will develop (with policy maker input) a list of potential Housing Vision Task Force Members for the HRA to consider for selection at the November or December HRA meeting. R"pectf Ily submitted, Ste -n . Devic 4(11(-----11% City Manager SLD:cak Email: Department Directors Assistant City Manager Copy: Planning Commission Housing Visioning Task Force Applicants January 15, 2013 No. Name: Address: Age Group: Please list any special qualifications for the Housing Visioning Task Force: I am the assistant manager at Genesee Apartments and Townhomes (www.geneseeapts.com). It is the new luxury apartment community that opened on Penn & American in Bloomington. I have six years of multi-family housing management experience in 1 Catherine Ragozzino 7xxx Bryant Avenue S 18-30 yrs old addition to being invested in Richfield's housing market. I participated in Richfield's Citizen Police Academy in 2011 and am interested in remaining active in the community by being a member of the Task Force. We are on the cusp of a transition in housing - I'm excited to have the opportunity to help shape it. 2 Jen Lux 7xxx Russell Ave S 31-50 yrs old Previously lived on a busier street in Richfield and going through the HRA program to build a (as of March/April) new home in Richfield. - Pastor at Oak Grove Lutheran Church in Richfield for 26 years. - Resident of Richfield 1986-2007. - Member of Richfield Community Council's sub-committee on Attainable Housing for many 3 Tom Zarth Oak Grove Lutheran - 7045 51-70 yrs old years. Lyndale Ave S - For 15 years Oak Grove operated its own Transitional Housing Program. - Served three years on the Board of Directors of the housing program Third Way Network. - I have a deep interest in maintaining/developing diverse housing opportunities to keep Richfield a strong community. 4 Adam Fleitman 7xxx Harriet Ave S 31-50 yrs old I live in Richfield, was raised in Richfield, and have been a teacher at Richfield High School for the past 5 years. Received my Master of Public Policy at the Humphrey School of Public Affairs, University of Minnesota in December 2012 Six plus years of government and policy work at the Minnesota 5 Alison Groebner 6xxx Russell Avenue S 18-30 yrs old Senate including some work on affordable housing Interest in local development and participating in improving our city 3 year homeowner in Richfield 6 Michelle Dowell 6xxx Girard Ave S 31-50 yrs old N/A Page 1 of 5 ?. -Lf Housing Visioning Task Force Applicants January 15, 2013 No Name: Address: Age Group: Please list any special qualifications for the Housing Visioning Task Force: 7 Susan Rosenberg 6xxx Thomas Ave S 51-70 yrs old Member - Attainable Housing Committee Former member of Richfield City Council I have my J.D. and am knowledgable in all areas of housing construction. Further, having 8 Murali "Matt" Patel 7xxx Colfax Ave S 31-50 yrs old grown up in Appalachia, I understand the detriment that lack of vision and direction have on property values, community values, and in turn, schools and public services. Background: Past work: * Member (current) Richfield Commoners United * Board member West Side Citizens Organization * Tenant organizer for Hamline Midway Coalition * Community Organizer for Dayton's Bluff District Council 9 Joe Hoover 7xxx Harriet Avenue S 31-50 yrs old * Youth Worker at St. Joseph's Home For Children, Minneapolis (Shelter and treatment center) for 6 years * Worked over 8 years in various programs with at risk youth, including Bush Children's shelter, Abbott Northwestern, Youth-in-Action (YIA), Minneapolis Public Schools with "Level 4" grade school students, Richfield Public Schools with "Level 5" High School students, Vice President, Minnesota Teachers Federation - St. Joseph's Home For Children * Board member and chair of Richfield Historical Society 10 Ghislaine Ball 7xxx Harriet Ave S 31-50 yrs old I have extensive Marketing experience and have done a lot of research on housing best/practices. I am actually a rental property manager in Eagan (200+ units). I have worked with my company, a locally owned and management real estate investment company, for over 10 years. Prior to that, I worked for three years for Apartment Search in Minneapolis and have a broad knowledge base of twin cities rental properties. I would really like to participate in the 11 Amy Utley 7xxx Pillsbury Ave S 31-50 yrs old discussions involving housing needs and plans in Richfield. I have made Richfield my home for the last 14 years, after being transplanted from the south (Tennessee). I am excited to hear thoughts for the future for our city, as well as be a part of paving our way into the future! I did attend an HRA meeting in September (or October...not sure) where a panel was proposed for this specific purpose and I meant to volunteer for it at that time. As it didn't actually exist, I feel this is the best time for me to volunteer now! Page 2 of 5 3- J Housing Visioning Task Force Applicants January 15, 2013 No. Name: Address: Age Group: Please list any special qualifications for the Housing Visioning Task Force: 12 Barry LeBlanc 7xxx Pillsbury Ave S 51-70 yrs old I have organizational skills. Have a greater appreciation how community organization work. Have children in kindergarten and plan on staying in Richfield till they graduate. 13 Steve Schneeberger 7xxx James Ave S 31-50 yrs old I have been a Richfield homeowner for 11 years. I have a child who attends the Richfield Dual Language School. I am a realtor with Edina Realty and specialize in selling Richfield real estate. l worked with an architect/engineering firm for my entire career doing contract administration 14 Robert Olson 7xxx Pillsbury Ave S 71+ yrs old work with contractors and owners. I am very concerned that Richfield develops a comprehensive housing policy that will provide the best outcome for residents of all income levels and ethnicities. I have been a member of the Richfield Community Council - Attainable Housing Committee 15 Camillo De Santis 6xxx Newton Ave S 71+ yrs old formed in 2001, advocating for a balanced housing approach for all Richfield residents with a focus on the special needs of the poor, low income, workforce and disenfranchised families and seniors. - Catholic pastor 16 Charles McCarthy 305 77th Street E 51-70 yrs old - Educator - Awareness of Social Teaching of the Church and Option for the Poor - Aware of the need for the community to maintain cultural, ethnic and economic balance - Appreciation for cultural diversity I have a good background of knowledge about the City from having served on the Planning Commission and being active in the Penn Central of Richfield community. I bring the perspective of being a parent of a high school aged youth. I would come to the task force 17 Gordon Hanson 6xxx Sheridan Avenue S 51-70 yrs old without any preconceived notions. I am interested in learning what the numbers show for the current housing inventory. My only set belief is that we need life cycle housing to serve all ages and demographics, and we need to have a housing stock that makes us competitive with neighboring cities. 18 Dan Warnest 7xxx 10th Ave S 18-30 yrs old I am a Realtor, who does most of my work in Richfield. Page 3 of 5 g Housing Visioning Task Force Applicants January 15, 2013 No Name: Address: Age Group: Please list any special qualifications for the Housing Visioning Task Force: I have lived in Richfield over 50 years and I have seen many things change over that time. I work in the Richfield School District as a teacher and I know where some of my students live. 19 Ann Dougherty 6xxx James Ave S 51-70 yrs old I would like to have more good choices for people who are not making a living wage. Look at what other cities have done for housing plans would be really interesting. I hope you choose me to help on the Housing Vision task force I am a bank examiner and have a unique perspective and knowledge on the financing of real estate projects. I have been a homeowner in Richfield since 2004, and I meet people from 20 John Suek 6xxx Pleasant Avenue S 31-50 yrs old across the Twin Cities in my job. My experience is that Richfield has an image problem. When I tell people I am from Richfield I am asked "where is that?" or I get a look that people cannot believe that I live here. With all due respect to other committee members, I think as perspective of someone under the age of 50 would be beneficial. I have a background in commercial construction and development and am now a commercial real estate investment broker. 21 Jeremy Larson 6xxx Knox Ave S 31-50 yrs old I used Richfield Redevelopment funds to purchase and build our current home. We still own our previous Richfield single family home as a rental property. I am partner of an architecture firm in Minneapolis, specializing in multifamily housing, affordable housing, and senior living environments. I spend a lot of time in communities throughout the metro area discussing our projects and issues pertaining to planning, density issues, demographics, types of housing, etc. I have been involved in the design and creation of all types of housing, from single-family homes, to townhomes, to apartments and condos containing hundreds of units. 22 Collin Kaas 6xxx 4th Avenue S 31-50 yrs old I first moved to Richfield when my wife and I moved back to MN from Oregon, where we lived for two years attending Graduate School. My wife had an offer to start as a Speech Pathologist in the Richfield School District, and I needed to find a job at an architecture firm, which would likely be downtown. We were young and just starting our careers, and moved into a one-bedroom apartment at 6600 Pleasant Ave, right by the Hub and Holy Angels. We fell in love with Richfield, and within 9 months, we had made an offer on our first home. We moved in in the spring of 2004, and 8 years and three kids later, we are still there. We're reall■ Page 4 of 5 Housing Visioning Task Force Applicants January 15, 2013 No Name: Address: Age e Grou : Please list any special qualifications for the Housing Visioning Task Force: 9 p Y p qualifications 9 As the AVP of Marketing for RBCU (Richfield Bloomington Credit Union) I am responsible for Marketing, PR, Community Outreach - including facilitation of company donations, and teaching Financial Literacy since December 1999. 23 Andre Thibault* RBCU - 345 77th St E 31-50 yrs old Advisory/Alternate Currently in a Leadership Twin Cities program through the Mpls Chamber which has included a presentation by Greater MSP and discussions on the "New Normal" as well as future development issues for the larger metro area. Also serving on the Bloomington Chamber of Commerce Board of Directors for 3 years; currently Chair-Elect. I am currently a senior partner for a green building triple pane window company, and have a Kory Kutz* lot of insight and experience in marketing retrofit residential homes. I would love to be 24 Adviso /Alternate 7xxx Thomas Ave S 18-30 yrs old involved with helping plan Richfield as a young homeowner that sees good planning making p� gp Y g g p g g Richfield grow in a new generation. Page 5 of 5