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021913completeagenda REVISED CITY OF RICHFIELD, MINNESOTA TUESDAY, FEBRUARY 19, 2013 RICHFIELD MUNICIPAL CENTER 6700 PORTLAND AVENUE ************�*�*********,�*******,��*��**�****�***********�**�********�*��*******�************�**�******* SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY MEETING BABCOCK ROOM 5:30 P.M. AGENDA Cail to order Roll call 1. Interview of persons interested in serving on the Housing Visioning Task Force. Notes: Adjournment �*********,�******�***��**��**��*****************��*�*****�**�*�********�*�*�*�*******�**�***��,�**** REGULAR HOUSING AND REDEYELOPMENT AUTHORITY MEETING COUNCIL CHAMBERS 7:00 P.M. AGENDA Call to order Roll call 1. Approval of minutes of (1) Special HRA Worksession of January 23, 2013; (2) Regular HRA Meeting of January 23, 2013; and (3) Special HRA Meeting of February 9, 2013 2. HRA approval of agenda 3. Consent Calendar contains several separate items which are acted upon by the HRA in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further HRA action on these items is necessary. However, any HRA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for HRA discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of the resolutions authorizing an Interfund Loan for Advance of Certain Costs in Connection with Property Located within the Cedar Avenue Tax Increment Financing District and approval of a Cooperative Agreement with the City of Richfield. S.R. No. 18 B. Consideration of approval of the cancellation of a public hearing regarding the sale of 6345 Bloom'rngton Avenue to Brandl/Anderson Homes, Inc. S.R. No. 19 C. Consideration of apt�roval of the Land Disposition Agreement with Hennepin County to develop 2517 76 Street West in accordance with the Community Development Block Grant Program guidelines within two years of the date the Agreement is executed. S.R. No. 20 D. Consideration of approval of the Land Disposition Agreement with Hennepin County to develop 7316 Clinton Avenue in accordance with Community Deve(opment Block Grant Program guidelines within two years of the date the Agreement is executed. S.R. No. 21 E. Consideration of approval of a resolution calling for a public hearing to amend the Business Subsidy Agreement by and between the Housing and Redevelopment Authority and Lyndale Gardens LLC. S.R. No. 22 Notes: 4. Public hearing and consideration of a resolution authorizing the sale of 6438 Bloomington Avenue to Brandl/Anderson Homes, Inc., and consideration of a Contract for Private Development with Brandl/Anderson Homes, Inc. for the construction of a single fiamily home under the Richfield Rediscovered Program. Staff Report No. 23 Notes: 5. Consideration of appointments to the Richfield Housing Visioning Task Force Staff Report No. 24 Notes: 6. HRA discussion items Notes: 7. Executive Director Report Notes: 8. Claims and Payroll Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES geC41#:Ced Richfield, Minnesota Special Housing and Redevelopment Authority Worksession January 23, 2013 CALL TO ORDER The meeting was called to order by Chair Sandahl at 6:06 p.m. ROLL CALL HRA Members Sue Sandahl, Chair; Steve Quam; Doris Rubenstein (arrived 6:18 p.m.); Present: and Debbie Goettel HRA Members David Gepner Absent: Staff Present: John Stark, Acting Executive Director/Community Development Director; Karen Barton, Assistant Community Development Director; and Theresa Schyma, Deputy City Clerk. Item # I DISCUSSION REGARDING LAKES AT LYNDALE CONNECTIVITY PLAN Ana Nelson and Bob Kost, representatives from Short Elliot and Hendrickson (S.E.H.), made a PowerPoint presentation of an overview of the Lakes at Lyndale Connectivity Plan. Ms. Nelson and Mr. Kost described where they are in the plan development process and the happenings at the January 15 public open house at Woodlake Nature Center including feedback relating to proposed trail connections and pedestrian improvements. Assistant Community Development Director Barton also mentioned that there will be a survey on the City's website with the information and design boards from the January 15 open house so that the City can continue to receive input from the community to help shape the connectivity plan. ADJOURNMENT The meeting was adjourned by unanimous consent at 6:55 p.m. Special HRA Worksession Minutes -2- January 23, 2013 Date Approved: February 19, 2013 Suzanne M. Sandahl Chair Theresa Schyma John Stark Deputy City Clerk Acting Executive Director HOUSING AND REDEVELOPMENT gec4ieed AUTHORITY MEETING MINUTES Richfield, Minnesota Regular Meeting January 23, 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; Present: and Debbie Goettel HRA Members David Gepner Absent: Staff Present: Steven L. Devich, Executive Director; John Stark Community Development Director; Karen Barton, Assistant Community Development Director; Chris Regis, Finance Manager; and Theresa Schyma, Deputy City Clerk. Item #1 CONSIDERATION OF ELECTION OF HRA OFFICERS FOR 2013 S.R. NO. 2 M/Goettel, S/Sandahl to approve Sue Sandahl as Chair, Steve Quam as Vice Chair, and Doris Rubenstein as Secretary of the HRA for 2013. Motion carried 4-0. Item #2 APPROVAL OF MINUTES OF (1) REGULAR HRA MEETING OF DECEMBER 17, 2012 AND (2) SPECIAL HRA MEETING OF JANUARY 7, 2013 M/Rubenstein, S/Quam to approve the minutes of(1) Regular HRA Meeting of December 17, 2012 and (2) Special HRA Meeting of January 7, 2013. Motion carried 4-0. Item #3 HRA APPROVAL OF AGENDA M/Goettel, S/Quam to approve the agenda. Motion carried 4-0. HRA Meeting -2- January 23,2013 Item #4 HRA PROGRAMS/COMMUNITY DEVELOPMENT 2012 YEAR IN REVIEW This item was moved to after Item #6 due to technical difficulties. Assistant Community Development Director Barton presented a brief overview of HRA Programs/Community Development 2012 year in review. Item #5 CONSENT CALENDAR 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 HRA RESOLUTION NO. 1139 RESOLUTION DESIGNATING U.S. BANK A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD FOR THE YEAR 2013 This resolution appears as HRA Resolution No. 1139. HRA RESOLUTION NO. 1140 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 This resolution appears as HRA Resolution No. 1140. HRA RESOLUTION NO. 1141 RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2013 This resolution appears as HRA Resolution No. 1141. D. Consideration of approval of resolution to abide by annual City Council decision designating official newspaper S.R. No. 6 HRA RESOLUTION NO. 1142 RESOLUTION TO ABIDE BY THE ANNUAL CITY COUNCIL DECISION DESIGNATING AN OFFICIAL NEWSPAPER This resolution appears as HRA Resolution No. 1142. E. Consideration of approval of resolution authorizing purchase of real property located at 6416-16th Avenue through New Home Program S.R. No. 7 HRA Meeting -3- January 23,2013 HRA RESOLUTION NO. 1143 RESOLUTION AUTHORIZING PURCHASE OF REAL PROPERTY LOCATED AT 6416 16TH AVENUE SOUTH This resolution appears as HRA Resolution No. 1143. 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 HRA RESOLUTION NO. 1144 RESOLUTION APPROVING THE CITY OF RICHFIELD'S PARTICIPATION IN HENNEPIN COUNTY'S 2013 ECONOMIC DEVELOPMENT INITIATIVE "OPEN TO BUSINESS" This resolution appears as HRA Resolution No. 1144. M/Goettel, S/Quam to approve the Consent Calendar. Motion carried 4-0. Item #6 CONSIDERATION OF REQUEST FOR SUBORDINATION OF HRA TRANSFORMATION PROGRAM LOAN AT 7720 VINCENT AVENUE S.R. NO. 13 Community Development Director Stark presented Staff Report No. 13. Andrew Medzis, homeowner of 7720 Vincent Avenue, stated that this is a simple refinance to lower interest payments. He continued that they plan to be in this home long-term and have been residents of Richfield since 1975. The loan was used for renovation, expansion, and modernization of the home they have lived in for 13 years. Commissioner Quam stated that nothing in this particular subordination bothered him but suggested it might be a good idea to revisit the subordination policy for possible revisions. He believes there is something about the process that is still not right. He stated that virtually all of these subordinations get approved but then we ignore the restrictions that we put into place during the process. Commissioner Rubenstein concurred with Commissioner Quam. Community Development Director Stark stated that since the last subordination policy was adopted there has been only one denial. Executive Director Devich stated that a memo could be sent to the commissioners with some ideas for revising the current policy. M/Goettel, S/Sandahl to approve request for subordination of HRA Transformation Program loan at 7720 Vincent Avenue. HRA Meeting -4- January 23,2013 Motion carried 4-0. The HRA moved back to agenda Item #4 as the technical difficulties were resolved. Item #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 S.R. NO. 14 Assistant Community Development Director Barton presented Staff Report No. 14. Joshua Klem, builder, was available for questions. M/Sandahl, S/Goettel to close public hearing. Motion carried 4-0. M/Goettel, S/Rubenstein that the following resolution be adopted and that it be made part of these minutes and to approve execution of contract for private development with Colette Therese O'Shea for development of a single family home under Richfield Rediscovered Program: HRA RESOLUTION NO. 1145 RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 7537 DUPONT AVENUE TO COLETTE THERESE O'SHEA This resolution appears as HRA Resolution No. 1145. Motion carried 4-0. Item #8 CONSIDERATION OF MEMBERSHIP OF TASK FORCE TO PARTICIPATE IN PREPARATION OF RICHFIELD'S HOUSING VISION S.R. NO. 15 Community Development Director Stark presented Staff Report No. 15. Community Development Director Stark stated that there are currently 25 applicants. Commissioner Goettel stated she was disappointed with the lack of representation from people of color. Commissioner Rubenstein stated she believes that more participation from renters is needed. Community Development Director Stark stated that staff put forth their best effort to advertise and recruit applicants. Commissioner Goettel stated the task force should reflect the makeup of the community. Commissioner Quam agreed with staff's recommendation to not make commissioners active participants on the task force. He also would like to see more ethnic and geographic diversity. However, he stated that the task force needs the best people to give insights and that geographic HRA Meeting -5- January 23,2013 and ethnic choices don't necessarily make their opinions more valuable but could prove certain insights. Commissioner Sandahl agreed with staff's recommendation to have already established local groups choose one representative to serve on the task force so as not to overload or skew the group in any one direction. Community Development Director Stark stated that they believe the group would function best with 12 to 20 members. The HRA consensus was that more applications were needed before they select the membership to the Housing Visioning Task Force. All applicants to the task force will be interviewed on February 9 and 17. Community Development Director Stark stated that he will make sure the HRA and City Council know how to access the online interest form so that they can help recruit new applicants. Also, staff will continue to advertise the need for applicants. Item #9 HRA DISCUSSION ITEMS Chair Sandahl discussed HRA Memo No. 7 regarding Cedar Point II housing redevelopment request for qualifications. Commissioner Goettel discussed parking at Lyndale Station. Chair Sandahl questioned when Menards would be opening. Community Development Director Stark responded that Menards will be opening around February 7. Item #10 EXECUTIVE DIRECTOR REPORT No report. Item #11 CLAIMS AND PAYROLL M/Goettel, S/Quam that the following claims and payrolls be approved: U.S. BANK 01/23/2013 Section 8 Checks: 122892 - 123011 $ 165,957.95 HRA Checks: 31650 - 31679 $ 149,073.37 TOTAL $ 315,031.32 Motion carried 4-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 7:34 p.m. HRA Meeting -6- January 23,2013 Date Approved: February 19, 2013 Suzanne M. Sandahl Chair Theresa Schyma Steven L. Devich Deputy City Clerk Executive Director HOUSING AND REDEVELOPMENT AUTHORITY MEETING MINUTES Richfield, Minnesota ge:644.eed Special HRA Meeting Housing Visioning Task Force Applicant Interviews February 9, 2013 CALL TO ORDER The meeting was called to order by Chair Sandahl at 8:00 a.m. in the Babcock Room. ROLL CALL HRA Members Sue Sandahl, Chair, Steven J. Quam; Doris Rubenstein; Debbie Goettel; Present: and David Gepner INTERVIEW OF APPLICANTS The HRA conducted interviews of the following applicants for appointment to the Housing Visioning Task Force: Deborah Williams Ann Dougherty Amy Utley Andre Thibault Brad Rynerson Ghislaine Ball Steve Schneeberger Adam Fleitman John Suek Camillo DeSantis Craig Thrane James Rudolph Tom Rublein Murali "Matt" Patel James "Mike" Andrews ADJOURNMENT The meeting was adjourned by unanimous consent at 12:48 p.m. Date Approved: February 19, 2013. Suzanne M. Sandahl Chair Cheryl Krumholz Steven L. Devich Executive Coordinator Executive Director AGENDA ITEM#: 3A REPORT#: 18 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING FEBRUARY 19, 2013 REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER NAME,TITLE REPORT PRESENTER: CHRIS REGIS, FINANCE MANAGER / NAME,TITLE DEPARTMENT DIRECTOR REVIEW: A II.i —-------— SIC 1.J(IRE REVIEWED BY EXECUTIVE DIRECTOR: -- AO �. ITEM FOR HRA CONSIDERATION: Consideration of the attached resolutions authorizing an Interfund Loan within the City of Richfield within the Cedar Avenue Tax Increment Financing District and approving a Cooperative Agreement with the City of Richfield. I. RECOMMENDED ACTION: By Motion: Approve the attached resolutions authorizing an Interfund Loan for Advance of Certain Costs In Connection with Property Located within the Cedar Avenue Tax Increment Financing District and approval of a Cooperative Agreement with the City of Richfield. II. BACKGROUND The City of Richfield has ordered the Richfield Parkway Phase II Project which includes reconstruction and widening of the Richfield Parkway. Due to the significant amount of right-of-way that is needed for the project the City has determined it necessary to acquire 14 properties located on 17th Avenue. The Housing and Redevelopment Authority (HRA) has previously purchased two parcels needed for the project. 021913 HRA Internal Loan Rich Parkway At the January 7, 2013 Special Housing and Redevelopment Authority meeting, the HRA board approved the process to acquire twelve remaining properties using special assessment bonds to be issued by the City. The properties to be acquired are located within the Cedar Avenue Tax Increment Financing District (TIF District) within the Richfield Redevelopment Project Area. The properties would initially be acquired by the City and once the purchasing process and project was complete the properties would then be conveyed to the HRA. The properties would then be specially assessed as part of the special assessment process. Accordingly, the HRA would then be responsible for the annual payment of the special assessment portion of the debt service for the bonds. Staff is recommending that the HRA prepay the special assessments with funds from the City's Permanent Improvement Revolving Fund (PIR). An interfund loan would then be established between the HRA and the City's PIR Fund. The purpose of the interfund loan recommendation is to provide some financial flexibility for the HRA until the site can be sold to a developer for redevelopment. The repayment of the interfund loan would have three sources in the following order of priority: • Land sale proceeds from the sale of the properties to a future developer. • Tax Increment revenues generated from the TIF District and legally available to pay principal and interest on the interfund loan. • Funds of the Housing and Redevelopment Authority that are legally available to pay the principal and interest on the interfund loan. The proceeds from the prepayment of special assessments would be used to pay down the outstanding principal balance on the special assessment bonds in February 2015. III. BASIS OF RECOMMENDATION A. POLICY • Minnesota Statutes Chapter 429 gives cities the authority to levy special assessments. • Section 469.178, Subdivision 7 of the TIF Act, the City is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. B. CRITICAL TIMING ISSUES • Beginning after March 31, 2013, the City may close on the properties that are part of the project according to purchase agreement terms. • Construction contract to be awarded no later than February 12, 2014. • The special assessment process is estimated to begin during fall 2014. C. FINANCIAL • The special assessment to be levied against the HRA would be $780,000 (25% of$3,120,000 the par value of the bonds). • Term of the internal loan would be 20 years. • 0% interest for the first two years of the loan with no principal and interest payments until 2017. • 1% interest rate beginning in 2017 along with the beginning of principal and interest payments. • If the properties are sold to a future developer prior to 2017, all proceeds received from the sale would immediately be applied to the outstanding loan balance. • The repayment of the loan would have three sources in the following order of priority: o Land sale proceeds from a future developer o Tax Increment revenues generated from the TIF District and legally available to pay principal and interest on the interfund loan. o Funds of the Housing and Redevelopment Authority that are legally available to pay the principal and interest on the interfund loan. D. LEGAL • Legal counsel has reviewed the attached resolutions and Cooperative Agreement. IV. ALTERNATIVE RECOMMENDATION(S) • Forgo the interfund loan and proceed with payment of the special assessments through normal special assessment payment process. V. ATTACHMENTS • Resolution Authorizing Interfund Loan for Advance of Certain Costs in Connection with Property Located within Cedar Avenue Tax Increment Financing District • Resolution Approving a Cooperative Agreement with the City of Richfield • Cooperative Agreement VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Julie Eddington, Kennedy & Graven 3 - 1 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA RESOLUTION NO. RESOLUTION AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH PROPERTY LOCATED WITHIN CEDAR AVENUE TAX INCREMENT FINANCING DISTRICT BE IT RESOLVED By the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Richfield,Minnesota(the"Authority")as follows: Section 1. Background. 1.01. The City of Richfield (the "City") has ordered the Richfield Parkway Phase II Project (Improvement Project No. CP-41007 (North Richfield Parkway)), which includes reconstruction and widening of Richfield Parkway from 66th Street to Bloomington Avenue (the "Richfield Parkway Project"). 1.02. Due to the significant amount of right-of-way that is needed for the Richfield Parkway Project, the City has determined it necessary to acquire all or portions of 14 properties located on 17th Avenue (the "Assembled Properties"), because once the right-of-way is provided to the City, the remainder of the lots will not be usable for residential purposes. 1.03. The Authority previously purchased two parcels (the "HRA Parcels") of the Assembled Properties needed for the Richfield Parkway Project, and proposes to convey to the City the easements necessary for the construction of the Richfield Parkway Project over those parcels. 1.04. The City intends to purchase the remaining 12 parcels (the "City Parcels") of the Assembled Properties needed for the Richfield Parkway Project. 1.05. Following the completion of the Richfield Parkway Project, the City intends to levy special assessments against the Assembled Properties and convey to the Authority the City Parcels, reserving to the City an easement for the Richfield Parkway Project. 1.06. Pursuant to a Cooperative Agreement to be entered into by the Authority and the City (the"Cooperative Agreement"), it is proposed that the Authority take ownership and responsibility for the Assembled Properties and the Authority shall pay the special assessments levied against the Assembled Properties,which are estimated to be in the amount of$780,000. 1.07. In order to lessen the economic burden on the Authority, the City has proposed to loan funds to the Authority (the "Interfund Loan") from its Permanent Improvement Revolving Fund in order to prepay the special assessments levied against the Assembled Properties. 1.08. The Assembled Properties are located within the Cedar Avenue Tax Increment Financing District (a redevelopment district) (the "TIF District") within the Richfield Redevelopment Project Area (the "Redevelopment Project"), both established by the Authority pursuant to Minnesota Statutes, Sections 469.174 to 469.179, as amended(the "TIF Act"), Sections 469.001 to 469.047, as amended(the "HRA Act"), and Laws of Minnesota 2005, Chapter 152,Article 2, Section 25 (the"Special Law"). 1 418679v3 JAE RC145-632 1.09. Under Section 469.178, subdivision 7 of the TIF Act,the City is authorized to advance or loan money from any fund from which such advances may be legally made in order to finance expenditures that are eligible to be paid with tax increments under the TIF Act. 1.10. The Authority intends to use tax increment revenues derived from the TIF District to repay all or a portion of the Interfund Loan in accordance with the terms of this resolution. Section 2. Terms of Interfund Loan. 2.01. The Authority hereby authorizes the advance of up to $780,000 from the City's Permanent Improvement Revolving Fund. The Authority will reimburse the City's Permanent Improvement Revolving Fund for such advance, together with interest at the rate per annum described below. Interest accrues on the principal amount of the Interfund Loan from the date the special assessments are prepaid by the Authority, which is expected to occur in the fall of 2014 (hereafter, the "Advance Date"). The Interfund Loan shall bear interest at the rate of 0.0% per annum for the first 24 months following the Advance Date. On the first day of the 25th month following the Advance Date, the Interfund Loan shall begin bearing interest at the rate of 1.0%. 2.02. Principal and interest (the "Payments') on the Interfund Loan shall be amortized over twenty (20) years from the Advance Date and paid annually on December 31 (a "Payment Date"). Payments shall be applied first to accrued interest, and then to unpaid principal. Interest accruing from the Advance Date will be simple interest and shall not be compounded annually. 2.03. Payments on the Interfund Loan may be made from Available Tax Increment,defined as tax increment from the TIF District received by the Authority from Hennepin County in the six-month period before any Payment Date (less any amounts determined by the Authority to be applied toward administrative expenses in accordance with the TIF Act or other senior obligations of the TIF District) or any other sources of funds the Authority may legally use to pay the Payments (including but not limited to proceeds of the sale of all or a portion of the Assembled Properties). With the consent of the City, the Interfund Loan may be subordinated to any future bonds, notes or contracts secured in whole or in part with tax increment revenues from the TIF District. This Interfund Loan is made on a parity basis with all outstanding obligations of the Authority with respect to the TIF District. Tax increments cannot be used to reimburse the City or the Authority for the acquisition costs related to the HRA Parcels or any of the City Parcels purchased prior to the Authority's adoption of this resolution. 2.04. The Authority hereby pledges the following revenues to the repayment of the principal of and interest on the Interfund Loan in the following order of priority: (i) all proceeds of the sale of all or any portion of the City Parcels; (ii) tax increment revenues derived from the TIF District and legally available to pay the principal of and interest on the Interfund Loan as described in Section 2.03; and (iii)any other funds of the Authority that are legally available to pay the principal of and interest on the Interfund Loan. 2.05. The principal sum and all accrued interest payable under this resolution is pre-payable in whole or in part at any time by the Authority without premium or penalty. 2.06. This resolution is evidence of an internal borrowing by the Authority in accordance with Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable from Available Tax Increment pledged to the payment hereof under this resolution or any other sources of funds the Authority may use to pay the Payments. The Interfund Loan shall not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including,without limitation,the Authority 2 418679v3 JAE RC145-632 3A- and the City. 2.07. The Authority, with the cooperation of the City, may from time to time amend the terms of this resolution to the extent permitted by law, including without limitation amendment to the payment schedule and the interest rate; provided that the interest rate may not be increased above the maximum specified in Section 469.178. subdivision 7 of the TIF Act. Section 3. Effective Date. This resolution is effective upon approval. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 19th day of February, 2013. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary 3 418679v3 JAE RC145-632 HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA RESOLUTION NO. RESOLUTION APPROVING A COOPERATIVE AGREEMENT WITH THE CITY OF RICHFIELD WHEREAS, pursuant to a resolution adopted February 12, 2013, the City of Richfield (the "City")has ordered the construction of the Richfield Parkway Phase II Project(Improvement Project No. CP-41007 (North Richfield Parkway)), which includes reconstruction and widening of the Richfield Parkway from 66th Street to Bloomington Avenue(the"Richfield Parkway Project"); and WHEREAS, due to the significant amount of right-of-way that is needed for the Richfield Parkway Project, the City has determined it necessary to acquire all or portions of 14 parcels of property located on 17th Avenue (the "Assembled Properties"), because once the right-of-way is provided to the City,the remainder of the lots will not be usable for residential purposes; and WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield (the "Authority")has purchased two of the 14 parcels of property that constitute the Assembled Properties and proposes to convey to the City the easements necessary for the construction of the Richfield Parkway Project over those parcels; and WHEREAS, following the completion of the Richfield Parkway Project, the City proposes to levy special assessments against all properties benefitted by the Richfield Parkway Project and convey to the Authority the remaining 12 parcels (the "City Parcels"), reserving to the City an easement for the Richfield Parkway Project; and WHEREAS, upon conveyance to the Authority of the City Parcels, it is proposed that the Authority be responsible for the payment of special assessments levied against the Assembled Properties and all maintenance of the Assembled Properties; and WHEREAS, the City has proposed to loan funds from its Permanent Improvement Revolving Fund(the"Interfund Loan")to the Authority in order for the City to prepay the special assessments levied against the Assembled Properties; and WHEREAS, it is proposed that the Authority will pledge the following revenues to the repayment of the principal of and interest on the Interfund Loan in the following order of priority: (i) all proceeds of the sale of all or any portion of the City Parcels; (ii) tax increment revenues derived from the Cedar Avenue Tax Increment Financing District and legally available to pay the principal of and interest on the Interfund Loan; and (iii) any other funds of the Authority that are legally available to pay the principal of and interest on the Interfund Loan; and WHEREAS,to memorialize the agreement between the Authority and the City with respect to the Assembled Properties, a Cooperative Agreement has been drafted and is on file with the Authority; and WHEREAS, the Authority Board has reviewed the Cooperative Agreement and finds that the execution thereof by the Authority and performance of the Authority's obligations thereunder are in the best interest of the City and its residents;and 418689v3 JAE RC145-632 NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield,Minnesota as follows: 1. The Cooperative Agreement presented to the Authority and on file with the Community Development Director is hereby in all respects approved, subject to modifications that do not alter the substance of the transaction and that are approved by the Chairperson and Executive Director; provided that execution of such document by such officials shall be conclusive evidence of approval. 2. The Chairperson and Executive Director are hereby authorized to execute the Cooperative Agreement on behalf of the Authority and to carry out on behalf of the Authority the Authority's obligations thereunder. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 19th day of February,2013. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary 2 418689v3 JAE RC145-632 l-P RICHFIELD PARKWAY COOPERATIVE AGREEMENT This Richfield Parkway Cooperative Agreement(the "Agreement") is made as of , 2013 by and between the CITY OF RICHFIELD, a Minnesota municipal corporation ("City") and the HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, a public body corporate and politic under the laws of Minnesota("Authority"). WITNESSETH: WHEREAS, pursuant to a resolution adopted February 12, 2013, the City of Richfield (the "City")has ordered the construction of the Richfield Parkway Phase II Project(Improvement Project No. CP-41007 (North Richfield Parkway)),which includes reconstruction and widening of Richfield Parkway from 66th Street to Bloomington Avenue(the"Richfield Parkway Project"); and WHEREAS, due to the significant amount of right-of-way that is needed for the Richfield Parkway Project, the City has determined it necessary to acquire all or portions of 14 properties located on 17`"Avenue (the "Assembled Properties"), because once the right-of-way is provided to the City, the remainder of the lots will not be usable for residential purposes; and WHEREAS,the Authority has purchased two (the"URA Parcels") of the 14 properties described in Exhibit A and proposes to convey to the City the easements necessary for the construction of the Richfield Parkway Project over those parcels; and WHEREAS, the City plans to issue its General Obligation Improvement Bonds, Series 2013A in the principal amount of approximately $3,120,000 (the"Bonds") in order to pay for a portion of the costs of the Richfield Parkway Project; and WHEREAS, the City plans to use a combination of grant proceeds and proceeds of the Bonds to purchase the remaining 12 properties described in Exhibit A(the"City Parcels"); and WHEREAS, following the completion of the Richfield Parkway Project, the City proposes to levy special assessments against all properties benefitted by the Richfield Parkway Project and convey to the Authority the City Parcels,reserving to the City an easement for the Richfield Parkway Project; and WHEREAS, upon conveyance to the Authority of the City Parcels, the Authority shall be responsible for the payment of special assessments levied against the properties and all maintenance of the properties; and WHEREAS, the City has proposed to loan funds from its Permanent Improvement Revolving Fund to the Authority in order to prepay the special assessments levied against the Assembled Properties; and NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: Section 1. Richfield Parkway Project. On February 12, 2013, the City Council of the City ordered the Richfield Parkway Project. The City plans to issue the Bonds in March 2013. The City's purchase of the City Parcels will commence after the Bonds are issued. Construction of the Richfield Parkway Project is set to commence in the spring of 2014 and be completed by December 31, 2014. The 418671v4 JAE RC145-632 1 City intends to levy the special assessments for the Richfield Parkway Project against the Assembled Properties no later than December 31, 2014. Section 2. Conveyance of Improvement Property to Authority. Following the completion of the Richfield Parkway Project and prior to the special assessments being levied against the Assembled Properties,the City shall convey the City Parcels to the Authority, reserving an easement for right-of-way purposes over those portions of the City Parcels as the City may require for the Richfield Parkway Project. Section 3. Consideration for City Parcels. In return for the City's conveyance of the City Parcels to the Authority, the Authority agrees to take financial responsibility for the following: a. the payment of special assessments levied against the Assembled Properties, in the aggregate amount of 25% of the principal amount of the Bonds,which is estimated to be$780,000; and b. maintenance of the Assembled Properties, including reimbursement of property taxes previously paid by the City against the City Parcels, if any, and including payment of property taxes, if any,that accrue against the City Parcels from the date of closing with the City. The parties agree and understand the City's public works department will provide lawn maintenance and snow plowing for the Assembled Properties at no charge to the Authority. Section 4. Prepayment of Special Assessments. The Authority agrees to prepay the special assessments levied against the Assembled Properties during the period of time allowed for such prepayments. The Authority shall prepay the special assessments by using the proceeds of the interfund loan provided by the City described in Section 5 below. Section 5. Interfund Loan from City's Permanent Improvement Revolving Fund. Pursuant to Section 315.07 of the City's Code, the City has the authority to loan funds in its Permanent Improvement Revolving Fund to provide interim financing of capital expenditures for projects undertaken by the City or the Authority. Pursuant to this authority,the City has agreed to lend, and the Authority has agreed to borrow funds from the City's Permanent Improvement Revolving Fund in an amount sufficient to prepay the special assessments levied against the Assembled Properties (the "Interfund Loan"). The terms, interest rate, payment obligations and amount of such interfund loan are set forth in the Interfund Loan resolutions adopted by the Authority's Board on February 19, 2013, and the City Council on February 26, 2013. Such terms of the Interfund Loan may be amended by further action of both the Authority's Board and the City Council. Section 6. TIF District. In 2006, the City and the Authority worked together to create the Cedar Avenue Tax Increment Financing District(a redevelopment district) (the"TIF District")within the Richfield Redevelopment Project Area (the "Redevelopment Project") pursuant to Minnesota Statutes, Sections 469.174 to 469.179, as amended(the "TIF Act"), Sections 469.001 to 469.047, as amended(the "HRA Act"), and Laws of Minnesota 2005, Chapter 152, Article 2, Section 25 (the "Special Law"). The TIF District was established in order redevelop an area of the City which includes the Assembled Properties. Tax increment revenues derived from the TIF District may be used to acquire and improve the Assembled Properties, including the payment of special assessments on the Assembled Properties. The parties agree and understand that tax increments cannot be used to reimburse the City or the Authority for the acquisition costs related to the HRA Parcels or any of the City Parcels purchased prior to the Authority's adoption of its Interfund Loan resolution described in Section 5. 418671v4 JAE RC145-632 2 Section 7. Sale of Improvement Property. There is no plan in place to sell the Assembled Properties to a particular redeveloper at the present time. However, the Authority may assemble all or a portion of the Assembled Properties and convey that land for the purposes of redevelopment to one or more private parties. The parties acknowledge and understand that in order to encourage redevelopment, the Authority may convey the Assembled Properties to a redeveloper for a nominal amount. The Authority agrees to notify the City of any proposal to sell the Assembled Properties, or any portion thereof, for less than fair market value. Section 8. Repayment of Interfund Loan. The Authority pledges the following revenues to the repayment of the principal of and interest on the Interfund Loan in the following order of priority: a. All proceeds of the sale of all or any portion of the City Parcels; b. Tax increment revenues derived from the TIF District and legally available to pay the principal of and interest on the Interfund Loan, and taking into account the restrictions on such funds set forth in Section 6; and c. Any other funds of the Authority that are legally available to pay the principal of and interest on the Interfund Loan. Section 9. Repayment of City Parcels Acquisition Costs. Following the repayment in full of the Interfund Loan, the Authority shall use the proceeds of any sale of the City Parcels, or portions thereof, to reimburse itself for the costs to maintain the City Parcels. Any remaining proceeds of the sale of the Assembled Properties shall be the property of the Authority. Section 10. Separability of Provisions. Each provision of this Agreement shall be considered separable and if for any reason any provision or provisions hereof are determined to be invalid and contrary to any existing or future law, such invalidity shall not impair the operation of or affect those provisions of this Agreement which are valid. Section 11. Counterparts. This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute one and the same agreement. Section 12. Term of Agreement This Agreement shall terminate on the earlier of(a)the date the payments described in Section 3a have been made in full; or (b) the date the Bonds are no longer outstanding. [The remainder of this page is intentionally left blank.] 418671v4 JAE RC145-632 3 IN WITNESS WHEREOF, the City and the Authority have caused this Richfield Parkway Cooperative Agreement to be duly executed by their duly authorized representatives as of the date first above written. CITY OF RICHFIELD By Its Mayor By Its City Manager HOUSING AND REDEVELOMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By Its Chairperson By Its Executive Director 418671v4 JAE RC145-632 4 91 - 1 ° EXHIBIT A LIST OF PROPERTIES TO BE PURCHASED FOR RICHFIELD PARKWAY PROJECT Address PID Purchased By 6314 17th Ave. S. 2602824110045 City 6320 17th Ave. S. 2602824110044 City 6326 17th Ave. S. 2602824110043 City 6332 17th Ave. S. 2602824110042 City 6338 17th Ave. S. 2602824110041 City 6344 17th Ave. S. 2602824110040 City 6408 17th Ave. S. 2602824110018 City 6414 17th Ave. S. 2602824110017 City 6426 17th Ave. S. 2602824110015 City 6432 17th Ave. S 2602824110014 City 6438 17th Ave. S. 2602824110013 City 6444 17th Ave. S. 2602824140012 City 6400 17th Ave. S 2602824140019 HRA 6420 17th Ave. S 2602824140016 HRA A-1 418671v4 JAE RC145-632 AGENDA ITEM#: 3B REPORT#: 19 =IAA STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING FEBRUARY 19, 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: • SIGNATUr. REVIEWED BY EXECUTIVE DIRECTOR: - `/ h. ITEM FOR HRA CONSIDERATION: Cancellation of a public hearing regarding the sale of 6345 Bloomington Avenue to Brandl/Anderson Homes, Inc. I. RECOMMENDED ACTION: By Motion: Cancel the public hearing regarding the sale of 6345 Bloomington Avenue to Brandt/Anderson Homes, Inc. II. BACKGROUND Brandt/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. A public hearing was scheduled for the Housing & Redevelopment Authority (HRA) consideration on January 23, 2013; however the builder determined that additional survey work was needed to address grade issues so the HRA continued the public hearing. Since that time, the Builder withdrew the application for 6345 Bloomington Avenue and has reapplied for the purchase of 6438 Bloomington Avenue. III. BASIS OF RECOMMENDATION 02192013 6345 Bloomington (Brandi Anderson)cancel PH.doc A. POLICY • N/A B. CRITICAL TIMING ISSUES • The Builder has withdrawn the application; however, a legal notice was published, so the HRA must publicly cancel the public hearing. C. FINANCIAL • The Builder was charged for the cost of the legal notice. D. LEGAL • Notice of the public hearing was published in the Sun-Current on January 10, 2013. The hearing was continued on January 23, 2013 therefore, the hearing must publicly be cancelled. • Notice of the cancellation was sent to adjacent neighbors as a courtesy. IV. ALTERNATIVE RECOMMENDATION(S) • Conduct and close the public hearing. V. ATTACHMENTS • None. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A AGENDA ITEM#: 3C REPORT#: 20 Maddll STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING FEBRUARY 19, 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: 121- REVIEWED BY EXECUTIVE DIRECTOR: rI v di r rf ITEM FOR HRA CONSIDERATION: Consideration of a Land Disposition Agreement with Hennepin County to develop 2517 76th Street West in accordance with Community Development Block Grant Program guidelines within two years of the date the Agreement is executed. I. RECOMMENDED ACTION: By Motion: Approve the Land Disposition Agreement with Hennepin County to develop 2517 76th Street West in accordance with Community Development Block Grant Program guidelines within two years of the date the Agreement is executed. II. BACKGROUND In 2010, the Housing & Redevelopment Authority (HRA) purchased the property at 2517 76th Street West with Community Development Block Grant (CDBG) funds. The property is guided for medium density housing and can accommodate up to eight housing units. Use of CDBG requires that 51 percent of the units built on the property be occupied by households earning at or below 80 percent of the Twin Cities Area Median Income (i.e., $65,000 for a family of four). Due to the oversupply of for-sale, attached housing units, the HRA land-banked the property for development at a future date. 02192013 Land Disposition Agreement 2517 76th St W.doc The Department of Housing and Urban Development (HUD) is seeking to encourage faster development of projects that involve CDBG funds. As a result, it is requiring the County to prepare and execute agreements with communities that have used CDBG to purchase property. The Agreement requires the property to be developed in accordance with CDBG guidelines within two years. At the end of that period of time, an additional two-year extension can be requested if it can be demonstrated that the project is still viable. If at the end of those four years, the property has not been developed, the HRA is required to either propose an alternate use of the land (consistent with CDBG guidelines) or sell the property at fair market value and return the portion of the sales proceeds attributable to CDBG to Hennepin County as CDBG program income. HRA staff will be issuing a Request For Proposals this spring for the redevelopment of the property with a mix of market-rate and affordable housing. III. BASIS OF RECOMMENDATION A. POLICY • The property is guided for medium density housing in the City's Comprehensive Plan. • Per the 2008 Comprehensive Plan: o Goal: Ensure sufficient diversity in the housing stock to provide for a range of household sizes, income levels, and needs. B. CRITICAL TIMING ISSUES • The County has requested that the Agreement be approved and executed by mid-March. • The Agreement will provide until March of 2015 to develop the property. At that time, an additional two years can be requested if the HRA can demonstrate that the project is still viable. • Staff plans to issue a Request for Qualifications to developers in 2013. C. FINANCIAL • The property was purchased using $301,543 in CDBG funds. $300,000 was the purchase price, plus an additional $1,543 in professional, acquisition-related expenses. This is 100 percent of the acquisition price. If the HRA is unable to develop the property within four years, it has the option of selling the property at market value and returning the sales proceeds or $300,000 (whichever is greater) to Hennepin County as CDBG program income. D. LEGAL • The Agreement is required by the Department of Housing and Urban Development in order to facilitate the timely development of property purchased with CDBG funds. • The Agreement must also be approved and executed by the City Council. IV. ALTERNATIVE RECOMMENDATION(S) • Decide not to approve the Agreement; however, Hennepin County may then require that the HRA repay the CDBG funds that were used to purchase the property. V. ATTACHMENTS • Land Disposition Agreement VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A Contract No.A130155 LAND DISPOSITION AGREEMENT THIS AGREEMENT made and entered into by and between the COUNTY OF HENNEPIN, STATE OF MINNESOTA, A-2300 Government Center, Minneapolis, Minnesota 55487 (the "COUNTY"), on behalf of the Hennepin County Housing, Community Works and Transit Department, 701 Fourth Avenue South, Suite 400,Minneapolis,Minnesota 55415 ("HCWT") and the City ofRichfield, a Minnesota municipal corporation,6700 Portland Ave. S., Richfield, Minnesota 55423 ("CITY"), and the Housing and Redevelopment Authority in and for the city of Richfield, 6700 Portland Ave. S., Richfield, Minnesota 55423 ("HRA")each of which parties is a governmental unit of the State of Minnesota pursuant to Minnesota Statutes, Section 471.59. WITNESSETH: WHEREAS,the COUNTY is a duly designated Urban County Community Development Block Grant entitlement recipient pursuant to the provisions of the Housing and Community Development Act of 1974,Title 1 of Public Law 93-383, as amended, (42 USC 5301 et seq.), and WHEREAS,the CITY is an authorized subgrantee participant in the Urban Hennepin County Community Development Block Grant Program by virtue of a Joint Cooperation Agreement executed between CITY and COUNTY pursuant to Minnesota Statutes, Section 471.59, and WHEREAS,the Urban Hennepin County Community Development Block Grant Program permits the CITY to use Community Development Block Grant funds to acquire lands for the purpose of assisting in the development of housing affordable to low and moderate-income households, and WHEREAS,the CITY suballocated Community Development Block Grant funds to the HRA to acquire the property at 2517 West 76th Street,Richfield,MN in furtherance of mutual affordable housing goals and objectives. NOW THEREFORE, in consideration of the mutual covenants and promises contained in this Agreement, the parties hereto mutually agree to the following terms and conditions: I. For and in consideration of the sum of$300,000.00,which was provided through the Urban Hennepin County Community Development Block Grant Program,the CITY,through theHRA, purchased and acquired the following described property situated in the City of Richfield,County of Hennepin, State of Minnesota, legally described as follows: That part of the East 3/4of the Southeast Quarter of the Southeast Quarter(SE 1/4of SE 1/4)of Section Thirty-two(32),Township Twenty-eight(28),Range Twenty-four(24),described as commencing at the northwest corner of said East 3/4 ofthe SE 1/4 of the SE 1/4;thence East along the North line of said SE'A of the SE 1/4170 feet;thence South parallel with the West line,of said East 3/4 of SE 1/4of the SE 1/4 258 feet;thence West parallel with the North line of said SE 1/4 ofthe SE 1/4 170 feet,to the West line of said 1 3C- d- East 3/4 ofthe SE 1/4 ofthe SE 1/4;thence North along said West line of East 3/4of the SE 1/4of the SE 1/4 to the point of beginning,according to the United States Government Survey thereof and situate in Hennepin County,Minnesota. PID#32-028-24-44-0001 II. The CITYand the HRA duly covenants and agrees that the purpose of such purchase and acquisition of said property is for the development of new housing affordable to low and moderate-income households(the"Project")and that such purpose shall be implemented not later than two years from the date of this Agreement.If at the end of such two(2)year period implementation of theProject has not actually begun but it can be demonstrated at such time that theProject is still viable and feasible,the CITY and the HRA shall have an option to extend the period during which it may hold such land for an additional two(2)year period. III. If at the end of the initial period of two(2)years,or during the second two(2)year period if the initial period should be so extended, it appears to the COUNTY that the Project proposed is no longer viable or feasible so that the CITYand the HRAcould not develop the Project on the site,then the COUNTY may: A. Approve an alternate use of the land for a project eligible for Community Development Block Grant funding, or B. Require that the site be sold for fair market value. The fair market value shall be established in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act(49 CFR Part 24). In the event that such property is sold in accordance with B above, the portion of the proceeds of such sale attributable to the ratio of the CDBG contribution to the purchase price identified in Paragraph I would become the property of the COUNTY as Community Development Block Grant program income. All program income returned to the COUNTY is subject to the provisions of the Joint Cooperation Agreement. In no event shall the amount returned be less than the CDBG contribution identified in Paragraph I. The CITY and the HRA,their administrators, heirs, and assigns, releases Hennepin County, its agents and employees, from any and all actions, causes of action, or claims or demands whatsoever kind of nature regarding the proceeds of such sale of property described above. IV. During the term of this Agreement the HRA,through the CITY, may propose to the COUNTY alternative uses for the site being so acquired and the County may consider and authorize such alternative proposal provided that such alternative is eligible for Community Development Block Grant assistance and that such alternative proposal meets then existing rules and regulations for such assistance. V. This Agreement is effective as of the day of , 2013, and shall 2 3C -3 continue in full force and effect until the Project is completed on the described site, or until the land is sold or approved for an alternate use in accordance with Paragraph III above, or at the expiration of two years or four years if extended in accordance with Paragraph II above,whichever occurs first. BALANCE OF PAGE LEFT INTENTIONALLY BLANK 3 COUNTY BOARD AUTHORIZATION The CITY and the HRA having signed this Agreement, and the Hennepin County Board of Commissioners having duly approved this Agreement on the day of ,2013, and pursuant to such approval and the proper COUNTY officials having signed this Agreement,the parties agree to be bound by the provisions herein set forth. COUNTY OF HENNEPIN Reviewed by the County STATE OF MINNESOTA Attorney's Office By: Chair of Its CountyBoard Date: ATTEST: Deputy Clerk of CountyBoard Date: By: CountyAdministrator Date: By: Assistant CountyAdministrator,Public Works Date: Recommended for Approval: Department Director, Housing,Community Works and Transit Date: CITY OF RICHFIELD STATE OF MINNESOTA By: Mayor And: CityAdministrator ATTEST: City Clerk Date: HOUSING AND REDEVELOPMENTAUTHORITY 4 3C IN AND FOR THE CITY OF RICHFIELD By: Executive Director By: Chair ATTEST: Secretary Date: 5 AGENDA ITEM#: 3D REPORT#: 21 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING FEBRUARY 19, 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: SIGNATU' REVIEWED BY EXECUTIVE DIRECTOR: r ITEM FOR HRA CONSIDERATION: Consideration of a Land Disposition Agreement with Hennepin County to develop 7316 Clinton Avenue in accordance with Community Development Block Grant Program guidelines within two years of the date the Agreement is executed. I. RECOMMENDED ACTION: By Motion: Approve the Land Disposition Agreement with Hennepin County to develop 7316 Clinton Avenue in accordance with Community Development Block Grant Program guidelines within two years of the date the Agreement is executed. II. BACKGROUND In 2008, the Housing & Redevelopment Authority (HRA) purchased the property at 7316 Clinton Avenue with Community Development Block Grant (CDBG) funds. The substandard structure was removed and a subdivision waiver approved to split the property into two lots. Use of CDBG requires that homes built on the property be sold to households earning at or below 80 percent of the Twin Cities Area Median Income (i.e., $65,000 for a family of four). Plans were pursued to develop two new, affordable, single family homes on the property; however, changes in the housing market in late 2008 led the HRA to land-bank the property to allow for absorption of existing for-sale houses. 02192013 Land Disposition Agreement 7316 Clinton.doc The Department of Housing and Urban Development (HUD) is now seeking to encourage faster development of projects that involve CDBG funds. As a result, it is requiring the County to prepare and execute agreements with communities that have used CDBG to purchase property. The Agreement requires the property to be developed in accordance with CDBG guidelines within two years. At the end of that period of time, an additional two-year extension can be requested if it can be demonstrated that the project is still viable. If at the end of those four years, the property has not been developed, the HRA is required to either propose an alternate use of the land (consistent with CDBG guidelines) or sell the property at fair market value and return the portion of the sales proceeds attributable to CDBG to Hennepin County as CDBG program income. HRA staff will be seeking developers to construct new affordable houses on the lots, one of which will likely be fully-accessible. III. BASIS OF RECOMMENDATION A. POLICY • The New Home Program has been in existence since 1976 and provides affordable, new homes to families earning at or below 80 percent of the Twin Cities Area Median Income. B. CRITICAL TIMING ISSUES • The County has requested that the Agreement be approved and executed by mid-March. • The Agreement will provide until March of 2015 to develop the property. At that time, an additional two years can be requested if the HRA can demonstrate that the project is still viable. C. FINANCIAL • The property was purchased using $32,150 in CDBG funds. This is 21 percent of the $150,000 acquisition price. The remainder of the acquisition costs were funded with the Housing and Redevelopment Fund. If the HRA is unable to develop the property within four years, it has the option of selling the property at market value and returning 21 percent of the sales proceeds or $32,150 (whichever is greater) to Hennepin County as CDBG program income. D. LEGAL • The Agreement is required by the Department of Housing and Urban Development in order to facilitate the timely development of property purchased with CDBG funds. • The Agreement must also be approved and executed by the City Council. IV. ALTERNATIVE RECOMMENDATION(S) • Decide not to approve the Agreement; however, Hennepin County may then require that the HRA repay the CDBG funds that were used to purchase the property. V. ATTACHMENTS • Land Disposition Agreement VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A • 3b- 1 Contract No.A 130206 LAND DISPOSITION AGREEMENT THIS AGREEMENT made and entered into by and between the COUNTY OF HENNEPIN, STATE OF MINNESOTA,A-2300 Government Center, Minneapolis, Minnesota 55487 (the "COUNTY"), on behalf of the Hennepin County Housing,Community Works and Transit Department, 701 Fourth Avenue South, Suite 400, Minneapolis, Minnesota 55415 ("HCWT") and the City ofRichfield, a Minnesota municipal corporation,6700 Portland Ave. S., Richfield, Minnesota 55423 ("CITY"), and the Housing and Redevelopment Authority in and for the city of Richfield, 6700 Portland Ave. S., Richfield, Minnesota 55423 ("HRA")each of which parties is a governmental unit of the State of Minnesota pursuant to Minnesota Statutes, Section 471.59. WITNESSETH: WHEREAS,the COUNTY is a duly designated Urban County Community Development Block Grant entitlement recipient pursuant to the provisions of the Housing and Community Development Act of 1974, Title 1 of Public Law 93-383, as amended, (42 USC 5301 et seq.), and WHEREAS,the CITY is an authorized subgrantee participant in the Urban Hennepin County Community Development Block Grant Program by virtue of a Joint Cooperation Agreement executed between CITY and COUNTY pursuant to Minnesota Statutes, Section 471.59, and WHEREAS,the Urban Hennepin County Community Development Block Grant Program permits the CITY to use Community Development Block Grant funds to acquire lands for the purpose of assisting in the development of housing affordable to low and moderate-income households, and WHEREAS,the CITY suballocated Community Development Block Grant funds to the HRA to acquire the property at 7316 Clinton Ave. S, Richfield, MN(IDIS Activity#934) in furtherance of mutual affordable housing goals and objectives. NOW THEREFORE, in consideration of the mutual covenants and promises contained in this Agreement, the parties hereto mutually agree to the following terms and conditions: For and in consideration of the sum of$32,150.00, which was provided through the Urban Hennepin County Community Development Block Grant Program,the CITY,through theHRA, purchased and acquired the following described property situated in the City of Richfield, County of Hennepin, State of Minnesota, legally described as follows: Lots 4 and 5,Block 4,Blairs Wooddale 3`d Addition PID#34-028-24-14-0086 1 II. The CITYand the HRA duly covenants and agrees that the purpose of such purchase and acquisition of said property is for the development of new housing affordable to low and moderate-income households(the"Project")and that such purpose shall be implemented not later than two years from the date of this Agreement.If at the end of such two(2)year period implementation of theProject has not actually begun but it can be demonstrated at such time that theProject is still viable and feasible,the CITY and the HRA shall have an option to extend the period during which it may hold such land for an additional two(2)year period. III. If at the end of the initial period of two(2)years,or during the second two(2)year period if the initial period should be so extended, it appears to the COUNTY that the Project proposed is no longer viable or feasible so that the CITYand the HRAcould not develop the Project on the site,then the COUNTY may: A. Approve an alternate use of the land for a project eligible for Community Development Block Grant funding, or B. Require that the site be sold for fair market value. The fair market value shall be established in accordance with the Uniform Relocation Assistance and Real Property Acquisition Policies Act(49 CFR Part 24). In the event that such property is sold in accordance with B above,the portion of the proceeds of such sale attributable to the ratio of the CDBG contribution to the purchase price identified in Paragraph I would become the property of the COUNTY as Community Development Block Grant program income. All program income returned to the COUNTY is subject to the provisions of the Joint Cooperation Agreement. In no event shall the amount returned be less than the CDBG contribution identified in Paragraph I. The CITY and the HRA,their administrators, heirs, and assigns, releases Hennepin County, its agents and employees, from any and all actions, causes of action, or claims or demands whatsoever kind of nature regarding the proceeds of such sale of property described above. IV. During the term of this Agreement the HRA,through the CITY, may propose to the COUNTY alternative uses for the site being so acquired and the County may consider and authorize such alternative proposal provided that such alternative is eligible for Community Development Block Grant assistance and that such alternative proposal meets then existing rules and regulations for such assistance. V. This Agreement is effective as of the day of , 2013, and shall continue in full force and effect until the Project is completed on the described site, or until the land is sold or approved for an alternate use in accordance with Paragraph III above, or at the expiration of two years or four years if extended in accordance with Paragraph II above, whichever occurs first. 2 50- 5 COUNTY BOARD AUTHORIZATION The CITY and the HRA having signed this Agreement, and the Hennepin County Board of Commissioners having duly approved this Agreement on the day of , 2013, and pursuant to such approval and the proper COUNTY officials having signed this Agreement,the parties agree to be bound by the provisions herein set forth. COUNTY OF HENNEPIN Reviewed by the County STATE OF MINNESOTA Attorney's Office By: Chair of Its CountyBoard Date: ATTEST: Deputy Clerk of CountyBoard Date: By: CountyAdministrator Date: By: Assistant CountyAdministrator, Public Works Date: Recommended for Approval: Department Director, Housing, Community Works and Transit Date: CITY OF RICHFIELD STATE OF MINNESOTA By: Mayor And: CityAdministrator ATTEST: City Clerk Date: HOUSING AND REDEVELOPMENTAUTHORITY 3 3D -LI IN AND FOR THE CITY OF RICHFIELD By: Executive Director By: Chair ATTEST: Secretary Date: 4 AGENDA ITEM#: 3E REPORT#: 22 =Ai STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING FEBRUARY 19, 2013 REPORT PREPARED BY: KAREN BARTON, ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE REPORT PRESENTER: KAREN BARTON,ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: -0( IGN e < REVIEWED BY EXECUTIVE DIRECTOR: , / ITEM FOR HRA CONSIDERATION: Consideration of a resolution calling for a public hearing to amend the Business Subsidy Agreement with Lyndale Gardens LLC. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolution calling a public hearing to amend the Business Subsidy Agreement by and between the Housing and Redevelopment Authority and Lyndale Gardens LLC. II. BACKGROUND In November 2011 the Housing and Redevelopment Authority (HRA) entered into a Business Subsidy Agreement with Lyndale Gardens LLC (the "Developer") relating to the $650,000 assistance provided to the Developer under the Spending Plan adopted by the HRA on July 25, 2011, which allowed excess cash balances of tax increment revenues to be used to promote development and job creation. The financial assistance was provided to the Developer to finance the costs of redeveloping the Lyndale Garden Center, located at 6400 Lyndale Avenue, which costs include the acquisition of the property, the remediation of environmental contaminants and the substantial rehabilitation of the existing building so that it is suitable for commercial use (the "Project"). The Developer has expended the funds on the acquisition of the property and performed some of the substantial rehabilitation. The Developer has asked that the 02192013 Resolution amending business subsidy agrmnt with Lyndale Gardens Business Subsidy Agreement be amended and restated to include the demolition of the Lyndale Garden Center and the construction of an approximately 30,000 square foot retail building which is expected to house a cooperative grocery store and to extend the timeframe to complete the Project. Minnesota Statutes, Sections 116J.993 to 116J.995, as amended (the "Business Subsidy Act") requires a public hearing and approval by the City Council for such amendments when the goals of the original Business Subsidy Agreement are changed. A resolution calling a public hearing to consider the restated and amended Business Subsidy has been drafted for the HRA's consideration. III. BASIS OF RECOMMENDATION A. POLICY • Minnesota Statutes, Section 469.176, Subd. 4m, (the "temporary TIF Authority Act") authorizes the HRA to spend available tax increment from any existing tax increment financing district to provide assistance in any form to private development consisting of construction or substantial rehabilitation of buildings and ancillary facilities provided: o Such assistance will create or retain jobs in the State of Minnesota, including construction jobs; o Construction commences before July 1, 2012 for private commercial development; o The construction would not have commenced before that date without the assistance; o Tax increments under the spending plan are spent by December 31, 2012; and o The City Council approves a written spending plan after conducting a duly noticed public hearing that specifically authorizes the HRA to take such actions • The purpose of the Funding Agreement and Business Subsidy Agreement was to remedy the blighted conditions that existed at the Lyndale Garden Center. Demolition of the building and the construction of a new retail center in its place will cure the blighted conditions B. CRITICAL TIMING ISSUES • The Developer has entered into a Purchase Agreement with Lakewinds Co-op grocer to construct a new building on the site of the former Garden Center. Closing is anticipated to occur this spring. • The closing will not occur unless and until the First Amendment to the Funding Agreement is approved and the Business Subsidy Agreement is amended. C. FINANCIAL • The Developer was awarded $650,000 in assistance through a Funding Agreement associated with the Business Subsidy Agreement in November 2011. • If the Business Subsidy Agreement is not amended and the Developer defaults, the Developer must repay all or a portion of the $650,000 business subsidy D. LEGAL • The HRA Attorney has drafted the Resolution. IV. ALTERNATIVE RECOMMENDATION(S) • Do not approve Resolution. V. ATTACHMENTS • Resolution calling public hearing • Original Business Subsidy Agreement VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Representatives of Developer • Julie Eddington, HRA Attorney SE- I HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA RESOLUTION NO. RESOLUTION CALLING PUBLIC HEARING ON AMENDED AND RESTATED BUSINESS SUBSIDY AGREEMENT WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield (the "Authority") and the City of Richfield (the "City") have previously established the Interchange Tax Increment Financing District and the Lyndale Gateway Tax Increment Financing District (collectively, the "TIF Districts") within the Richfield Redevelopment Project Area and adopted tax increment financing plans therefor, pursuant to Minnesota Statutes, Sections 469.001 to 469.047, as amended, and Sections 469.174 to 469.1799, as amended; and WHEREAS, Minnesota Statutes, Section 469.176, Subd. 4m (the "Temporary TIF Authority Act") authorizes the expenditures of available tax increment from any existing tax increment financing district, notwithstanding any other law to the contrary, to provide improvements, loans, interest rate subsidies, or assistance in any form to private development consisting of construction or substantial rehabilitation of buildings and ancillary facilities, if certain conditions are met; and WHEREAS, at its meeting on July 25, 2011, the Authority approved a spending plan for the TIF Districts in accordance with the Temporary TIF Authority Act (the "Spending Plan") to utilize existing tax increment revenues from the TIF Districts in order to stimulate construction or rehabilitation of private development in a way that will also create or retain jobs; and WHEREAS, the assistance authorized under the Spending Plan expressly included assistance to Lyndale Gardens, LLC, a Minnesota limited liability company (the "Developer") to finance the costs of redeveloping the Lyndale Garden Center, located at 6400 Lyndale Avenue South in the City, which costs include the acquisition of the property, the remediation of environmental contaminants and the substantial rehabilitation of the existing building so that it is suitable for commercial use (the "Project"); and WHEREAS, on August 15, 2011, the Board of the Authority approved a Funding Agreement, between the Authority and the Developer (the "Funding Agreement"), pursuant to which the Authority provided $650,000 of the funds available under the Spending Plan to the Developer to help finance the Project; and WHEREAS, on August 15, 2011, the Board of the Authority also approved a Business Subsidy Agreement, between the Authority and the Developer (the "Business Subsidy Agreement"), which set forth the terms and conditions of the business subsidy provided to the Developer pursuant to the Funding Agreement; and WHEREAS, on the date hereof, at the request of the Developer, the Board of the Authority approved the execution of the First Amendment to Funding Agreement (the "First Amendment to Funding Agreement"), which amends the scope of the Project to include both the acquisition and substantial rehabilitation of the Lyndale Garden Center (as described in the Funding Agreement), or in the alternative, the demolition of the Lyndale Garden Center and the construction of an approximately 30,000 square foot retail building which is expected to house a cooperative grocery store; and WHEREAS, the Developer has requested that the Business Subsidy Agreement be amended and restated to incorporate the new scope of the Project and to extend the timeframe to complete the Project; and WHEREAS, Minnesota Statutes, Sections 116J.993 to 116J.995, as amended (the "Business Subsidy Act") requires a public hearing when the goals of the original Business Subsidy Agreement are changed and approval by the City Council for such amendments; and WHEREAS, the Authority has determined to call a public hearing with respect to the amended and restated Business Subsidy Agreement on March 18, 2013; and NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota as follows: 1. The Executive Director is authorized and directed to publish a notice for publication in the official newspaper of the Authority setting a public hearing before the Authority Board on Monday, March 18, 2013, at or after 7:00 p.m. at City Hall on the proposed amended and restated Business Subsidy Agreement. The notice, attached as EXHIBIT A, shall be published in the newspaper at least 10 days prior to the public hearing, and shall be in substantially the form attached hereto. 2. The Executive Director is authorized and directed to take all other actions necessary to bring the amended business subsidy before the City Council for approval. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 19th day of February, 2013. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary 3T -3 EXHIBIT A NOTICE OF PUBLIC HEARING HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA NOTICE IS HEREBY GIVEN that the Board of Commissioners (the "Board") of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the "HRA"), will hold a public hearing on Monday, March 18, 2013, at approximately 7:00 P.M. at the Richfield City Council Chambers in City Hall, 6700 Portland Avenue, Richfield, Minnesota, to consider an amended business subsidy in an amount not to exceed $650,000 originally granted to Lyndale Gardens, LLC (the "Developer"), under Minnesota Statutes, Sections 116J.993 through 116J.995 (the "Business Subsidy Act"). The proposed amended business subsidy consists of a loan and grant in an amount not to exceed $650,000, which would assist the Developer with a portion of the costs of the acquisition and substantial rehabilitation of the Lyndale Garden Center or the demolition of the Lyndale Garden Center and construction of a new approximately 30,000 square feet retail center that is expected to house a grocery store. A summary of the terms of the amended business subsidy is on file and available for inspection at the office of the Executive Director of the HRA at Richfield City Hall on and after the date of this notice. Any person with residence in or the owner of taxable property in the City of Richfield may file a written complaint with the Board if the Board fails to comply with the Business Subsidy Act. No action may be filed against the Board for the failure to comply unless a written complaint is filed. At the time and place fixed for the public hearing, the Board will give all persons who appear at the hearing an opportunity to express their views with respect to the proposal. In addition, interested persons may direct any questions or file written comments respecting the proposal with the Executive Director of the HRA, at or prior to said public hearing. Dated: [date of publication] BY ORDER OF THE BOARD OF COMMISSIONERS OF THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA /s/ Steve Devich Executive Director BUSINESS SUBSIDY AGREEMENT THIS BUSINESS SUBSIDY AGREEMENT, made and entered as of the Z day of I MA 011 (the "Agreement"), by and between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a Minnesota public body corporate and politic (the "Authority")and Lyndale Gardens,LLC,a Minnesota limited liability company(the"Developer"). RECITALS WHEREAS, pursuant to Minn. Stat. Section 469.176, subd. 4c, the Authority is authorized to spend available tax increment from any existing tax increment financing district, notwithstanding any other law to the contrary, to provide improvements, loans, interest rate subsidies, or assistance in any form to private development consisting of construction or substantial rehabilitation of buildings and ancillary facilities, if the following conditions exist: (i)such assistance will create or retain jobs in the State of Minnesota, including construction jobs; (ii) construction commences before July 1, 2012; (iii) the construction would not have commenced before that date without the assistance; (iv) the City Council approves a written spending plan (after a duly noticed public hearing) that specifically authorizes the HRA to take such actions; and (v) the tax increments authorized under the Spending Plan are spent by December 31, 2012;and WHEREAS, on July 25, 2011, the Board of the Authority approved a spending plan spending plan (the "Spending Plan") which authorizes the Authority to expend current cash balances on hand from two tax increment districts pursuant to Minn. Stat. Section 469.176, subd. 4c; WHEREAS, on August 9, 2011, the City Council of the City of Richfield (the "City") held a duly noticed public hearing and approved the Spending Plan;and WHEREAS, the Developer has requested assistance under the Spending Plan in the amount of$650,000 in order to finance the acquisition and redevelopment of the Lyndale Garden Center, located at 6430-6400 Lyndale Avenue South in the City and legally described in the attached Exhibit A (the "Development Property"), and such redevelopment will include the remediation of environmental contaminants and the substantial rehabilitation of the existing building so that it is suitable for commercial use(the"Project");and WHEREAS, the Authority has determined that the requested assistance may constitute a "business subsidy" within the meaning of Minnesota Statutes, Section 116J993 through 116J.995 (the"Business Subsidy Act");and. WHEREAS, the Authority has adopted criteria for awarding business subsidies in accordance with the Business Subsidy Act, and has determined that the assistance described in this Agreement is consistent with those criteria; and 389371v2JAE RC125-316 1 3E- 5 WHEREAS, the Board of the Authority has approved this Agreement as a subsidy agreement under the Business Subsidy Act, after a duly noticed public hearing held on July 25,2011; and WHEREAS, on August 15, 2011, the Board of the Authority held a duly noticed public hearing and approved this Agreement as a subsidy agreement under the Business Subsidy Act; and WHEREAS, on August 15, 2011, the Board of the Authority also approved a Funding Agreement (the "Funding Agreement"), between the Authority and the Developer, which provides the terms and conditions for a grant to the Developer in the amount of$335,000 and a forgivable loan to the Developer in the amount of$315,000 to help finance a portion of the costs of the Project; and NOW, THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto,each of them does hereby covenant and agree with the other as follows: 1. General Terms. The parties agree and represent to each other as follows: (a) The subsidy provided by the Authority to the Developer consists of the grant provided under the Funding Agreement in the amount of$335,000 and the forgivable loan provided under the Funding Agreement in the amount of$315,000. (b) The public purpose of the subsidy is to promote the substantial rehabilitation of a blighted building located in the City, encourage further redevelopment in the area of the Development Property,and to increase tax base within the City. (c) The goals for the subsidy are to (i) secure completion of the Project; (ii)ensure that the Project is operated for at least five years as described in clause (f) below; and(iii)remedy the blight on the Development Property. (d) If the goals described in clause (c) are not met, the Developer must make the payments to the Authority described in Section 3 hereof. (e) The subsidy is needed because the costs of completing the Project are financially infeasible without public assistance. (f) The Developer must continue or cause to be continued operation of the Project as a commercial facility for at least five years after the Benefit Date. For purposes of this.Section, "Benefit'Date" means the earlier of(i) the date the improvements to the Development Property referred to herein as the Project are completed or(ii) the date a business occupies the Project. For purposes of this Section,the Project will be considered operated as a commercial facility as long as any portion of the Project is operated by the Developer or any permitted successors and assigns, or a tenant thereof, for commercial purposes. During any period when the Project is vacant and not operated for commercial purposes, the Project will not constitute a commercial facility; 389371v2 JAE RC125 316 2 3a- o provided that the Project will be considered a commercial facility if Developer is using best efforts to lease the Project for commercial purposes. (g) The Developer must maintain commercially reasonable insurance coverage on the Project, including without limitation insurance against loss and/or damage to the Project and comprehensive general public liability insurance. The Developer agrees to notify the Authority immediately in the case of damage exceeding$100,000 in amount to,or destruction of,the Project or any portion thereof resulting from fire or other casualty. In such event the Developer will forthwith,repair, reconstruct, and restore the Project to substantially the same or an improved condition or value as it existed prior to the event causing such damage and,to the extent necessary to accomplish such repair,reconstruction,and restoration,the Developer will apply the net proceeds of any insurance relating to such damage received by the Developer to the payment or reimbursement of the costs thereof. The Developer shall complete the repair, reconstruction and restoration of the Project, regardless of whether the net proceeds of insurance received by the Developer for such purposes are sufficient to pay for the same,provided that if Developer delivers evidence that such repair is financially infeasible or that the holder of any mortgage on the Project withholds consent to such repair, the Authority shall waive this requirement. Any net proceeds remaining after completion of such repairs,construction,and restoration shall be the property of the Developer. (h) The Developer does not have a parent corporation. (i) The Developer expects to receive the following financial assistance from other "grantors" as defined in the Business Subsidy Act, in connection with the Project: $850,000 from Hennepin County's Transit Oriented Loan Program; up to $3,000,000 in tax increment financing from the Authority; $100,000 from Metropolitan Council's Livable Communities Demonstration Account Predevelopment Grant Program; and $38,100 from the Department of Employment and Economic Development for environmental investigation. 2. Job and Wage Goals. In accordance with Section 116J.994, subdivision 4, the Authority has determined after a public hearing that the creation or retention of jobs is not the goal of the business subsidy provided under this Agreement. Accordingly,the wage and job goals are set at zero. 3. Remedies. If the Developer fails to meet the goals described in Section 1(c), the Developer shall repay to the Authority upon written demand from the Authority(a)the total amount of the subsidy described in Section 1(a) hereof; and(b) interest on the amounts in clause (a) at the rate set forth in the Business Subsidy Act, accrued from the Benefit Date to the date of the default. If the Project is timely completed but the Developer fails to meet the five-year operation goal,the total subsidy to be repaid will be prorated by the portion of the five-year operation period elapsed as of the date of default. • Developer agrees and understands that it may not receive a business subsidy from the Authority or any grantor(as defined in the Business Subsidy Act)for a period of five years from the date of the failure or until the Developer satisfies its repayment obligation under this Section, whichever occurs first. 389371v2 ME RCI25-316 3 3 E-7 4. Reports. Developer must submit to the Authority a written report regarding business subsidy goals and results by no later than March 1 of'each year, commencing March 1, 2012 and continuing until the later of(a) the date the goals stated Section 1(c) are met; (b) 30 days after expiration of the five-year period described in Section 1(f)or(c) if the goals are not met,the date the subsidy is repaid in accordance with Section 3. The report must comply with Section 116.1.994, subdivision 7 of the Business Subsidy Act. The Authority will provide information to the Developer regarding the required forms. If Developer fails to timely file any report required under this Section, the Authority will mail the Developer a warning within one week after the required filing date. If,after 14 days of the postmarked date of the warning,the Developer fails to provide a report,the Developer must pay to the Authority a penalty of$100 for each subsequent day until the report is filed. Failure by the Authority to deliver a timely warning notice will not relieve the Developer's obligation to pay a penalty within 14 days after receipt of a notice to pay. The maximum aggregate penalty payable under this Section is$1,000. 5. Relation to Funding Agreement, This Agreement supplements the Funding Agreement. In the event of any conflict between this Agreement and the Funding Agreement, this Agreement controls. 6. Potential Exception from Business Subsidy Act. The Project is a part of a larger multi phased development for which the Developer is in the process of completing its development planning and financing plans. Pursuant to Section 1161.993, subd. 3(17) of the Business Subsidy Act, assistance for redevelopment will not be considered a business subsidy when the recipient's investment in the purchase of the site and in site preparation (not including any costs reimbursed with tax increment or grants) is 70%or more of the assessor's current year's estimated market value. The Authority may in the future determine that the Developer has met this redevelopment exception to the Business Subsidy Act and may determine, in its sole discretion,to terminate this Agreement. 7. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand, or other communication under the Agreement by either party to the other shall be sufficiently given or delivered it if is dispatched by registered or certified mail, postage prepaid,return receipt requested,or delivered personally: As to the Authority: Richfield Housing and Redevelopment Authority 6700 Portland Ave. Richfield, MN 55423 Attention:Executive Director With Copy to: Kennedy&Graven 470 U.S.Bank Plaza Minneapolis,MN 55402 Attention:John Dean 389371v2 JAE RC125-3'16 4 3E�g As to the Developer: Lyndale Gardens,LLC 7610 Lyndale Ave South Suite 200. Richfield, MN 55423 Attention: Colleen Carey 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. 8. Counterparts, This Agreement may be simultaneously executed in any number of counterparts,all of which shall constitute one and the same instrument. (Remainder of Page Intentionally Left Blank.) 389371v2 JAE RC125-316 5 3E- 9 IN WITNESS WHEREOF,the Authority has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Developer has caused this Agreement to be duly executed in its name and behalf as of the date first above written. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA By: Its: Chair (SEAL) By: Its: Executive Director STATE OF MINNESOTA ) ) SS. COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this ,2011, by and , the Chair and Executive Director, respectively, of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, on behalf of the Authority. Notary Public 389371v2 JAE RC125-316 6 3E- ID LYNDALE GAR.DENS,LLC /I/ By: AAlkilii/MN/ Its: IffAtirflatir LI. STATE OF MINNESOTA ) ) SS. COUNTY OF HENINTEPIINI ) The foregoing instrument was acknowledged before me this klotrt4A 19e4r *2011,by Cof fee.4A ( &e , the C44erf r\14,4446.e,A., , on behalf of the efr BETH A PFEIFER NOTAYPUBLIC-MINNESOTA Notary Public My Commission Evires Jan.31,2015 389371v2 JAE Re125.316 7 3E- ■ EXHIBIT A DEVELOPMENT PROPERTY LEGAL DESCRIPTION 389371v2 JAE RC125-316 A-1 AGENDA ITEM#: 4 REPORT#. 23 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING FEBRUARY 19, 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: ,/," 4 SIGNAT RE REVIEWED BY EXECUTIVE DIRECTOR: r ITEM FOR HRA CONSIDERATION: Public hearing and consideration of a resolution authorizing the sale of 6438 Bloomington Avenue to Brandl/Anderson Homes, Inc., and consideration of a Contract for Private Development with Brandt/Anderson Homes, Inc. for the construction of a single family home under the Richfield Rediscovered Program. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: 1. Approve a resolution authorizing the sale of 6438 Bloomington Avenue to Brandl/Anderson Homes, Inc.; and 2. Authorize execution of a Contract for Private Development with Brandl/Anderson Homes, Inc. for the development of a single family home under the Richfield Rediscovered Program. II. BACKGROUND The Housing and Redevelopment Authority (HRA) purchased 6438 Bloomington Avenue in the winter of 2012 and demolished the existing sub-standard house in the fall. Brandl/Anderson Homes, Inc. (Builder) has submitted an application to purchase the lot and construct a new home under the Richfield Rediscovered Program. The Builder has a Purchase Agreement with a Buyer to purchase the home upon completion. 02192013 RR Contract 6438 Bloomington (Brandl/Anderson) The new two-story home will have 1,604 finished square feet, three bedrooms, two and a half baths and an attached, two-stall garage. The home will have an estimated end-value of$225,000. The Richfield Rediscovered program allows for a builder to receive a $5,000 credit in the event that the house is certified through LEED, Minnesota Green Star or Minnesota Green Communities, or similar program. The Builder is intending to construct the home to Minnesota Green Path certification standards. Once the certification is obtained, the $5,000 credit would be issued to Brandt/Anderson. Construction is expected to begin in March and will be completed in the summer of 2013. Elevations of the proposed house 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 May 1, 2013. • Per the Contract for Private Development, construction must be completed by September 1, 2013. C. FINANCIAL • The appraised value of the lot is $43,500. • The HRA acquired the foreclosed property in 2012 for $55,000 and razed the existing house. • Under the terms of the Contract the purchase price of$43,500 will be due at closing. • Under the terms of the Contract the Builder will submit a $10,000 cash escrow to be held until construction is completed as provided in the Contract. • The Builder will receive a $5,000 credit if certification is obtained through Minnesota Green Path. • The Builder has submitted evidence of construction financing as well as the financing of the end-buyer. D. LEGAL • The HRA Attorney prepared the Contract for Private Redevelopment. • Notice of the public hearing was published in the Sun Current on February 7, 2013 and a mailed notice was sent to adjacent neighbors, as a courtesy. IV. ALTERNATIVE RECOMMENDATIONS) • Do not execute the Contract for Private Development. • Amend the Contract for Private Development and direct staff to work with the Builder to revise the proposal. V. ATTACHMENTS • Resolution • Photo of 6438 Bloomington Avenue lot • Contract for Private Development • Building Plans/Elevations VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Scott Ervin, Brandt/Anderson Homes HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 6438 BLOOMINGTON AVENUE TO BRANDL/ANDERSON HOMES, INC. WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in furtherance of the Richfield Rediscovered Program adopted by the HRA, said real property being described as: Address: 6438 Bloomington Avenue South Legal: Lot 9, Block 6, "Girard Parkview," 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 Brandl/Anderson Homes, Inc., and WHEREAS, a Contract for Private Development has been prepared, and the sale price of 6438 Bloomington Avenue South is $43,500.00 with performance security in the amount of$10,000; and WHEREAS, a public hearing has been held after proper public notice. NOW, THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota: 1. A public hearing has been held and 6438 Bloomington Avenue is authorized to be sold for $43,500.00 to Brandl/Anderson Homes, Inc.; and 2. The Chairperson and Executive Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sale to the Builder. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 19th day of February, 2013. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary 0-- Photo of 6438 Bloomington Avenue South ri. . L ,,.44 .. ' p.• , ,,a1 -•::.. . - ' , t.sk:TtrAf at 4 f s'''I'f "*.•4',_ AV‘.., r r. ....-,- - -' i.Pr- • I -"Ali'', '" . ., . ' i: - '.:-4 - ' '. .115"1".'. • 't .• it , .•,....„.• . 1 3M,- i. A‘ - • ' - ,' - , -i . -. ".,•11 ... ...:11% If.,-4.`. ...,,,e041%., -'''t, site walfw . • ,.,:-.1. v. ''`'ili' ',i' "q•■-`, ''• , '. L.. ' ) .,••/ NY,-,t;..,- ..").111/,..; . '.-,Isr..'i't011OPPIPe li ■,, 1 . ., - , g f 7 . ft f .. 'ik ■ girl 0 '' '‘ ■ ' i' , , , 1 41 .111111■ I 1 ' 1111 11 / op ,ta ' 1110 .41.11Wo W gligaligli, 03151t'. ,.,NI ''''' 111 ' _. • Eitt • I' 4 4 ), .11111k .... 01'-77,• ., --'441Ww...., , 0 - „. ;'"'""N"IIIIIIIIIIIIIIIIMINIksr ' ' . -•,'4 - ....41.-Al -,-+' *,=4 11. *----_-• - ° .. , . . ,...,ee,-..... plifillr.-"p: •,,,- i 7:4. ,4"-- '' „.-- -"""° . .. .. _ , - -3 CONTRACT CONTRACT FOR PRIVATE DEVELOPMENT Between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA and Brandl/Anderson Homes,Inc. for property located at 6438 Bloomington Avenue South This Instrument Drafted by: The Housing and Redevelopment Authority In and for the City of Richfield 6700 Portland Avenue South Richfield,Minnesota 55423 Telephone: (612) 861-9760 401253v6 CBR RC 125-65 CONTRACT FOR PRIVATE DEVELOPMENT THIS AGREEMENT,made and entered into as of this day of ,20 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 Brandl/Anderson Homes, Inc. (Builder). WITNESSETH: WHEREAS, the City of Richfield (City) and the HRA have previously created and established a Redevelopment Project (Project) pursuant to the authority granted in Minnesota Statutes, Sections 469.001 through 469.047(collectively, the Act); and WHEREAS, pursuant to the Act, the City and the HRA have previously adopted a redevelopment plan for the Project(Redevelopment Plan);and WHEREAS, in order to achieve the objectives of the Redevelopment Plan and particularly to make specified land in the Project available for development by private enterprise for and in accordance with the Redevelopment Plan, the HRA has determined to provide substantial aid and assistance to finance development costs in the Project; and WHEREAS, the Builder has proposed a development as hereinafter defined within the Project which the HRA has determined will promote and cany out the objectives for which the Project has been undertaken, will assist in carrying out the obligations of the Redevelopment Plan, will be in the vital best interests of the City and the health, safety and welfare of its residents and is in accord with the public purposes and provisions of the applicable state and local laws and requirements under which development in the Project has been undertaken and is being assisted. NOW, THEREFORE, in consideration of the mutual covenants and obligation of the HRA and the Builder, each party does hereby represent, covenant and agree with the other as follows: ARTICLE I. DEFINITIONS,EXHIBITS,RULES OF INTERPRETATION Section 1.1. Definitions. In this Agreement, the following terms have the meaning given below unless the context clearly requires otherwise: Building Plans. Detailed plans for the Improvements to be constructed on the Property, as required by the local building official for issuance of a building permit. A-1 401253v6 CBR RC125-65 Construction Plans. The construction plans approved by the HRA pursuant to Section 4.1 of this Agreement. The Construction Plans include a schedule for construction of the Improvements, preliminary plans and schematics of the Improvements to be constructed, and a landscaping plan. Development. The Property and the Improvements to be constructed thereon according to the Construction Plans approved by the HRA. Event of Default. Event of Default has the meaning given such term in Section 8.1. Guidelines. The Richfield Rediscovered Program Guidelines Lot Sale Program, revised November 15,2010 and attached as Exhibit B to this Agreement. Homeowner. The individuals purchasing the Property from Builder and who will be living in the home following purchase. Improvements. Each and all of the structures and site improvements constructed on the Property by the Builder, as specified in the Construction Plans to be approved by the HRA. Minimum Market Value. $225,000 which is the minimum market value for the land and Improvements as confirmed by the Hennepin County Assessor. Mortgage. A mortgage obtained by the Builder from a third party lender in accordance with Section 7.2 of this Agreement. Property. The real property legally described as: Lot 9,Block 6,"Girard Parkview,"Hennepin County,Minnesota Located on land having a street address of: 6438 Bloomington Avenue South Unavoidable Delays. Delays which are the direct result of strikes, labor troubles, fire or other casualty to the Improvements, litigation commenced by third parties which results in delays or acts of any federal, state or local government, except those contemplated by this Agreement, which are beyond the control of the Builder. Section 1.2. Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: A. Form of Certificate of Completion B. Program Guidelines—Lot Sale Program C. Form of Quit Claim Deed D. Well Disclosure Section 1.3. Rules of Interpretation. 401253v6 CBR RC 125-65 2 (a) This Agreement shall be interpreted in accordance with and governed by the laws of the State of Minnesota. (b) The words "herein" and "hereof' and words of similar import, without reference to any particular section or subdivision refer to this Agreement as a whole rather than any particular section or subdivision hereof. (c) References herein to any particular section or subdivision hereof are to the section or subdivision of this Agreement as originally executed. (d) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions. ARTICLE II. REPRESENTATIONS AND UNDERTAKINGS Section 2.1. By the Builder. The Builder makes the following representations and undertakings: (a) The Builder has the legal authority and power to enter into this Agreement and has duly authorized the execution, delivery and performance of this Agreement; (b) The Builder has the necessary equity capital or has obtained commitments for financing necessary for construction of the Improvements; (c) The Builder will construct the Improvements in accordance with the terms of this Agreement and all local, state and federal laws and regulations; (d) The Builder will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws and regulations which must be obtained or met before the Improvements may be constructed; (e) The plans for the Improvements have been prepared by a qualified draftsperson or architect; and (f) The Builder has read and understands the Guidelines and agrees to be bound by them. 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 401253v6 CBR RC 125-65 3 (b) The HRA will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Builder and will cooperate with the efforts of the Builder to secure the granting of any permit, license, or other approval required to allow the construction of the Improvements. ARTICLE III. ACQUISITION OF PROPERTY; CONVEYANCE TO BUILDER Section 3.1. Purchase of Property by Builder. The HRA agrees to sell the Property to Builder and the Builder agrees to purchase the Property from the IRA in an "as-is" condition. The sale of the Property is contingent upon the Builder providing the HRA with evidence satisfactory to the HRA that Builder has entered into a binding legal commitment, in the form of a Purchase Agreement for the resale of the Property to a Homeowner following completion of the Improvements. The HRA agrees to convey the Property to the Builder by Quit Claim Deed in the general form of Exhibit C. The HRA's deed to the Builder will contain the right of reverter required in Section 8.3. The purchase price for the Property, payable at Closing, will be$43,500 ("Purchase Price"). Section 3.2. Title and Examination. As soon as reasonably possible after execution of this Contract for Private Development by both parties, (a) HRA shall surrender any abstract of title and a copy of any owner's title insurance policy for the property, if in HRA's possession or control, to Builder or to Builder's designated title service provider; and (b) Builder shall obtain the title evidence determined necessary or desirable by Builder or Builder's lender, including but not limited to title searches, title examinations, abstracting, a title insurance commitment or an attorney's title opinion, at Builder's selection and cost, and provide a copy to the HRA. The Builder shall have 20 days from the date it receives such title evidence to raise any objections to title it may have. Objections not made within such time will be deemed waived. The HRA shall have 90 days from the date of such objection to effect a cure; provided, however, that the HRA shall have no obligation to cure any objections, and may inform Builder of such. The Builder may then elect to close notwithstanding the uncured objections or declare this Agreement null and void, and the parties will thereby be released from any further obligation hereunder. Section 3.3. Taxes and Special Assessments. Real estate taxes and installments of special assessments will be prorated between the HRA and Builder as of the date of closing. Section 3.4. Soil Conditions and Hazardous Wastes. The Builder acknowledges that the HRA makes no representations or warranties as to the conditions of the soils on the Property, its fitness for the construction of improvements or any other purpose for which the Builder may use the Property, or regarding the presence of hazardous wastes on the Property. The HRA will allow reasonable access to the Property for the Builder to conduct such tests regarding soils 401253v6 CBR RC125-65 4 ✓ O conditions and hazardous wastes as the Buyer may desire. Permission to enter the Property to conduct such tests must be given in writing under reasonable terms and conditions established by the HRA. Section 3.5. Site Clearance. The HRA will be responsible for clearance of all buildings as required to prepare the Property for development. All other site preparation is the responsibility of Builder. Builder will comply with all of the provisions of the Guidelines relating to tree protection, preservation and replacement. Section 3.6. Other Preconditions to Closing. Closing may not take place until the HRA is satisfied that the Project is in all respects in full compliance with the provisions of the Guidelines contained in Exhibit B. It is anticipated that the Builder will involve the Homeowner in the various activities required under the Guidelines so that the Homeowner will have an opportunity to contribute suggestions concerning development of the Property. Section 3.7. Closing. Closing must take place on or before May 1, 2013, or such other date as may be agreed to by the Builder and HRA in writing. At Closing, the Builder will provide the HRA with a a cash deposit for the escrow account established pursuant to Section 5.1, in addition to the Purchase Price. Section 3.8. Closing Costs. The Builder will pay: (a)the closing fees charged by its title insurance company or other closing agent, if any, utilized to close the transaction for Builder; (b)title services chosen by Builder pursuant to Section 3.2 above,including the premium for title insurance policy,if any,and(c)the recording fees for the Contract for Private Development and the deed transferring title to the Builder. BRA will pay all other fees normally paid by sellers, including (a) any transfer taxes, and (b) fees and charges related to the filing of any instrument required to make title marketable. Each party shall pay its own attorney fees. Section 3.9. Sewer and Water. HRA warrants that city water is available at the lot line and city sewer is available at the curb. Section 3.10. ISTS Disclosure. HRA is not aware of any individual sewage treatment system on the property. Buyer is responsible for all costs of removing any individual sewage treatment system that may be discovered on the Property. Section 3.11. Well Disclosure. HRA's knowledge of wells on the Property is disclosed in Exhibit D. ARTICLE IV. CONSTRUCTION OF IMPROVEMENTS Section 4.1. Construction of Improvements. The Builder shall construct the Improvements on the Property in accordance with the Guidelines and the Construction Plans, shall cause the Improvements to meet or exceed the Minimum Market Value specified in Section 1.1, and shall maintain, preserve and keep the Improvements in good repair and condition. The Builder shall provide his or her proposed construction plans to the HRA for review; if the 401253v6 CBR RC 125-65 5 proposed construction plans are in conformity with this Agreement and the Guidelines, the HRA will approve the Construction Plans following review and comment by the Homeowner. Section 4.2. Construction Plans. No building permit will be issued by the City unless the Building Plans are in conformity with the Guidelines, the Construction Plans, the Builder's Minimum Market Value, other requirements contained in this Agreement, and all local, state and federal regulations. The Builder shall provide the HRA with a set of Building Plans to be used in connection with any application for a building permit. The HRA shall, within 25 days of receipt of the Building Plans review the same to determine whether the foregoing requirements have been met. If the HRA determines such Building Plans to be deficient, it shall notify the Builder in writing stating the deficiencies and the steps necessary for correction. Issuance of the building permit by the City shall be a conclusive determination that the Building Plans have been approved and shall satisfy the provisions of this Section 4.2. Section 4.3. Schedule of Construction. Subject to Unavoidable Delays, construction of the Improvements shall be completed prior to September 1, 2013. All construction shall be in conformity with the approved Construction Plans and the Guidelines. Periodically during construction the Builder shall make reports in such detail as may reasonably be requested by the HRA concerning the actual progress of construction. If at any time prior to completion of construction the HRA has cause to believe that the Builder will be unable to complete construction of the Improvements in the time permitted by this Section 4.3, it may notify the Builder and demand assurances from the Builder regarding the Builder's construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of any of the remedies specified in Section 8.2 of this Agreement. Section 4.4. Certificate of Completion. After notification by the Builder of completion of construction of the Improvements, the HRA shall inspect the construction to determine whether the Improvements have been completed in accordance with the Construction Plans and the terms of this Agreement, including the date of the completion thereof. In the event that the HRA is satisfied with the construction, and upon closing on the sale of the Property to the Homeowner, the HRA shall furnish the Builder with a Certificate of Completion in the form attached hereto as Exhibit A. Such certification by the HRA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement. Issuance of the Certificate of Completion shall also serve as a satisfaction of any obligation of Builder secured by the the escrow account established under Section 5.1, and the cash in the escrow account will be released to the Builder. At the time a Certificate of Completion is issued, the HRA will also provide Builder with a $5,000 cash rebate if Builder has obtained Green Community Concepts certification through LEED for Homes, Minnesota GreenStar, Minnesota Green Communities 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 Builder with a written statement, indicating in adequate detail in what respects the Builder has failed to complete the Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the HRA,for the Builder to take or perform in order to obtain such certification. 401253v6 CBR RC125-65 6 q _ 10 Section 4.5. Failure to Construct. In the event that construction of the Improvements is not completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed to have occurred, and the HRA may proceed with its remedies under Section 8.2. ARTICLE V. REDEVELOPMENT ASSISTANCE Section 5.1. Establishment of Cash Escrow. Builder acknowledges that although it is purchasing the Property at its fair market value as raw land, the HRA has incurred significant costs in acquiring and preparing the Property for development by Builder. At Closing, Builder will deliver to the HRA $10,000 to be placed in a non-interest bearing escrow account pursuant to the Escrow Agreement, dated as of the date hereof, between Builder and HRA. The obligation to pay the $10,000 to the HRA will be forgiven, and the cash in the escrow account will be returned to Builder if: (i) the Builder receives a Certificate of Completion; and (ii)the Builder is not otherwise in default of any of its obligations hereunder. If such have not occurred, an Event of Default shall be deemed to have occurred and the HRA may exercise its remedies under Section 8.2. ARTICLE VI. FINANCING Section 6.1. Financing. HRA acknowledges that Builder has submitted evidence of financing for the Improvements in compliance with the provisions of Section 2.1(b) of this Agreement. Builder must notify HRA immediately of any changes to or withdrawal of the approved financing, HRA shall have 10 days to approve or disapprove changes in financing. If the HRA rejects a change in the approved financing or if the approved financing is withdrawn, the Builder shall have 30 days or such additional period of time as the Builder may reasonably require from the date of the HRA's notification to submit evidence of financing satisfactory to the HRA. If the Builder fails to submit such evidence or fails to use due diligence in pursuing financing, the HRA may terminate this Agreement and both parties shall be released from any further obligation or liability hereunder. Closing shall not take place until Builder has provided HRA with acceptable evidence of financing for construction of the Improvements. Section 6.2. Copy of Notice of Default to Lender. Whenever the HRA shall deliver any notice or demand to the Builder with respect to any Event of Default by the Builder in its obligations or covenants under this Agreement,the HRA shall at the same time forward a copy of such notice or demand to each holder of any Mortgage authorized by the Agreement at the last address of such holder shown in the records of the HRA. Section 6.3. Subordination. In order to facilitate obtaining financing for the construction of the Improvements by the Builder, the HRA may, in its sole and exclusive discretion, agree to modify this Agreement in the manner and to the extent the HRA deems reasonable, upon request by the financial institution and the Builder. 401253v6 CBR RC125-65 7 ARTICLE VII. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 7.1. Representation as to Redevelopment. The Builder represents and agrees that its undertakings pursuant to the Agreement, are for the purpose of development of the Property and not for speculation in land holding. The Builder further recognizes that, in view of the importance of the Development to the general welfare of Richfield and the substantial financing and other public aids that have been made available by the HRA for the purpose of making the Development possible, the qualification and identity of the Builder are of particular concern to the HRA. The Builder further recognizes that it is because of such qualifications and identity that the HRA is entering into this Agreement, and, in so doing, is further willing to rely on the representations and undertakings of the Builder for the faithful performance of all undertakings and covenants agreed by the Builder to be performed. Section 7.2. Prohibition Against Transfer of Property and Assignment of Agreement. For the reasons set out in Section 7.1 of this Agreement, the Builder represents and agrees as follows: (a) Except as specifically allowed by this section, Builder has not made or created, and, prior to the issuance of the Certificate of Completion, Builder will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the HRA. (b) This provision shall not be deemed as preventing the Builder from entering into a Purchase Agreement for the sale of the Property to a Homeowner. (c) This provision does not prohibit conveyances that are only by way of security for, and only for the purpose of obtaining financing necessary to enable the Builder or any successor in interest to the Property, or any part thereof, to perform its obligations with respect to the Development under this Agreement, and any other purpose authorized by this Agreement. Any Mortgage obtained by the Builder must be disclosed to the I-IRA, and must be subordinate to this Agreement. The Builder must provide the HRA with an address for the holder of the Mortgage for purposes of providing notices as may be required by this Agreement. ARTICLE VIII. EVENTS OF DEFAULT Section 8.1. Events of Default Defined. The following shall be deemed Events of Default under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides, any one or more of the following events: (a) Failure by the Builder to pay when due the payments required to be paid or secured under any provision of this Agreement; 401253v6 CBR RC 125-65 8 (b) Failure by the Builder to observe and substantially perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder, including the time for such performance; (c) If the Builder shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Property; (d) If the Builder, on a petition in bankruptcy filed against it, be adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order or decree appointing, without the consent of the Builder, a receiver of the Builder or of the whole or substantially all of its property, or approve a petition filed against the Builder seeking reorganization or arrangement of the Builder under the federal bankruptcy laws, and such adjudication, order or decree shall not be vacated or set aside or stayed within 60 days from the date of entry thereof; or (e) If the Development is in default under any Mortgage and has not entered into a work-out agreement with the holder of the Mortgage. Section 8.2. Remedies on Default. Whenever any Event of Default occurs, the HRA may, in addition to any other remedies or rights given the HRA under this Agreement, take any one or more of the following actions following written notice by the HRA to the Builder as provided in Section 9.3 of this Agreement: (a) Suspend its performance under this Agreement until it receives assurances from the Builder, deemed reasonably adequate by the HRA, that the Builder will cure its default and continue its performance under this Agreement; (b) Cancel or rescind this Agreement; (c) Exercise its right under Section 8.3; (d) Withdraw all funds in the escrow account established in Section 5.1; (e) Withhold the Certificate of Completion; or (f) Take whatever action at law or in equity may appear necessary or desirable to the HRA to enforce performance and observance of any obligation, agreement, or covenant of the Builder under this Agreement; provided, however, that any exercise by the HRA of its rights or remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid or limit in any way(a) the lien of any Mortgage authorized by this Agreement and(b) any rights or interest provided in this Agreement for the protection of the holders of a Mortgage; and provided further that should any holder of a Mortgage succeed by foreclosure of the Mortgage or deed in lieu thereof to the Builder's interest in the Property, it shall, notwithstanding the foregoing, be obligated to perform the obligations of the Builder under this Agreement to the extent that the same have not therefore been performed by the Builder. 401253v6 CBR RC 125-65 9 Section 8.3. Revesting Interest in URA Upon Happening of Event of Default Subsequent to Conveyance of Property to Builder. In the event that subsequent to the closing or the sale of the Property to the Builder and prior to the issuance of the Certificate of Completion: (a) The Builder fails to begin construction of the Improvements in conformity with this Agreement,and such failure is not due to Unavoidable Delays; (b) The Builder, after commencement of the construction of the Improvements, defaults in or violates obligations with respect to the construction of the Improvements, including the nature and the date for the completion thereof, or abandons or substantially suspends construction work,and such act or actions is not due to Unavoidable Delays; (c) The Builder or successor in interest fails to pay real estate taxes or assessments on the Property or any part thereof when due, or places thereon any encumbrance or lien unauthorized by this Agreement, or suffers any levy or attachment to be made, or any supplier's or mechanic's lien, or any other unauthorized encumbrance or lien to attach; (d) There is, in violation of Article VII of this Agreement, any transfer of the Property or any part thereof; or (e) The Builder fails to comply with any of its covenants under this Agreement, then the IIRA shall have the right upon 30 days' written notice to Builder and the Builder's failure to cure within such 30 days period, to re-enter and take possession of the Property and to terminate and revest in the HRA the interest of the Builder in the Property; provided, however, that such revestiture of title shall be subject to the lien of any prior encumbrance permitted under this Agreement, or any right of a Homeowner pursuant to a valid Purchase Agreement authorized by this Agreement. Section 8.4. No Remedy Exclusive. No remedy herein conferred upon or reserved to the HRA is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the HRA or the Builder to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required in this Article VIII. Section 8.5. No Additional Waiver Implied by One Waiver. In the event of the occurrence of any Event of Default by either party, which Event of Default is thereafter waived by the other party, such waiver shall be limited to the particular Event of Default so waived and shall not be deemed to waive any other concurrent, previous or subsequent Event of Default. 401253v6 CBR RC 125-65 10 Li- IL ARTICLE IX. ADDITIONAL PROVISIONS Section 9.1. Conflict of Interests; Representatives Not Individually Liable. No HRA officer who is authorized to take part in any manner in making this Agreement in his or her official capacity shall voluntarily have a personal financial interest in this Agreement or benefit financially there from. No member, official, or employee of the HRA shall be personally liable to the Builder, or any successor in interest, for any Event of Default by the HRA or for any amount which may become due to the Builder or successor or on any obligations under the terms of this Agreement. Section 9.2. Non-Discrimination. The provisions of Minnesota Statutes Section 181.59,which relate to civil rights and non-discrimination,and any affirmative action program of the City shall be considered a part of this Agreement and binding on the Builder as though fully set forth herein. Section 9.3. Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt requested or delivered personally: (a) As to the HRA: Richfield HRA Executive Director 6700 Portland Avenue South Richfield, MN 55423 (b) As to the Builder: Scott Ervin Brandl/Anderson Homes, Inc. 4555 Erin Drive Eagan, MN 55122 or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this Section 9.3. Section 9.4. Counterparts. This Agreement may be simultaneously executed in any number of counterparts,all of which shall constitute one and the same instrument. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of the day and year first above written. 401253v6 CBR RC125-65 11 [signature pages follow] 401253v6 CBR RC 125-65 12 Signature Page for HRA THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA By Its Chairperson By Its Executive Director STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 20 , by , the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate and politic under the laws of Minnesota, on behalf of the authority. Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 20 , by ,the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate and politic under the laws of Minnesota, on behalf of the authority. Notary Public 4012530 C13R RC 125-65 13 Signature Page for Builder Brandl/Anderson Homes, Inc. C4 B �� 6744 Y Its Vice President • STATE OF MINNESOTA ) ) SS COUNTY OF 4 to-,l ` , ) (S The foregoing instrument was acknowledged before me this 3/ a day of January, 2013, by Christopher J. Brandt, the Vice President of Brandl/Anderson Homes, Inc., a corporation under the laws of Minnesota, on behalf of the corporation. Scott David Ervin • i Notary�'- Public Nota Public thirmesota My C441iiiiS n L44("S Juuary 31,2015 401253v6 CIIR RC 125-65 14 I 0 EXHIBIT A FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that , has fully and completely complied with its obligations under that document entitled "Contract for Private Development", between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota and dated filed as Document No. (the "Contract") with respect to the construction of the approved construction plans at , legally described as and is released and forever discharged from its obligations under such Contract. DATED: THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY RICHFIELD By: Its: Executive Director STATE OF MINNESOTA ) SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of , 20_, by the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota on behalf of the public body corporate and politic. Notary Public This instrument was drafted by: Kennedy& Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 40125306 CBR RC I25-65 15 EXHIBIT B PROGRAM GUIDELINES-LOT SALE PROGRAM RICHFIELD REDISCOVERED PROGRAM GUIDELINES LOT SALE PROGRAM REVISED: NOVEMBER 15,2010 401253v6 CBR RC 125-65 B-1 PROGRAM OBJECTIVES DEFINITIONS PROGRAM BASICS APPLICATION REQUIREMENTS ADDITIONAL REQUIREMENTS HOUSE DESIGN AND SITE DEVELOPMENT REQUIREMENTS New House Standards Site Standards Construction Requirements General Standards Green Community Concepts CITY REVIEW PROCEDURE LOT SALE TO BUILDER/BUYER PROGRAM MARKETING DATA PRIVACY B-2 401253v6 CBR RC 125-65 This document has been developed as a guidance tool for program administration. It should not be interpreted as constituting any contractual agreement or liability by the City or Housing and Redevelopment Authority (HRA). The HRA may modify or divert from the guidelines where it deems appropriate. I. Program Objectives 1. To remove substandard, functionally obsolete housing on scattered sites throughout the City and replace with new, higher-valued housing. 2. To eliminate the blighting influence of substandard housing, thus improving residential neighborhoods. 3. To alleviate the shortage of housing choices for families. 4. To facilitate the construction of larger three- to four-bedroom, owner-occupied homes designed for families. 5. To facilitate the construction of multi-unit, owner-occupied homes designed to expand family opportunities or to serve elderly residents. These objectives will be achieved through the sale of lots by the Housing and Redevelopment Authority to Builder/Buyer teams for the development of newly constructed homes. II. Definitions Applicant:An individual who submits an application for a Richfield Rediscovered lot. The Applicant may be a Builder or the end Buyer. If the Applicant is a Builder, an end Buyer should be identified. If the Applicant is the Buyer, the Applicant must submit a signed contract between the Builder and the Buyer to build a home on the lot identified in the application. Buyer.An individual(s)who will build, own and occupy a new housing unit in Richfield. The Buyer will occupy the property and not offer it for rent. The Buyer may not also function as the Builder on a Richfield Rediscovered project. The Buyer and Builder must be unrelated separate legal entities. A speculative project by a Buyer may be considered if all other program requirements can be met. However, neither the Buyer, the Buyer's Builder or Builder's subcontractors, or the Builder's realty agents may occupy or purchase the property. Buyers, unless licensed in the trade specified, may not put any sweat equity into the construction of the foundation, wall/roof framing, shingling, exterior work, electrical/plumbing/HVAC systems or interior carpentry. Builder. Contractor who has signed a contract with the Buyer to build a home on the lot identified in the application. Contract for Private Development: A contract between the HRA and the Builder or Buyer that establishes the conditions under which the lot will be sold and the proposed house will be developed. Green Community Concepts Plan: A written plan indicating how the proposed development will incorporate green building features and concepts. Priority will be given to projects that incorporate green building features. HRA: Housing and Redevelopment Authority in and for the City of Richfield. Lot List: A listing of available lots for sale. Information regarding the lot location, size and sale price is provided. B-3 401253v6 CBR RC 125-65 ate Ill. Program Basics 1. HRA publishes a list of available vacant lots for purchase including sale price and development criteria. 2. Builder/Buyer team proposes a plan for a lot consistent with development criteria and program requirements and makes an offer to purchase. 3. HRA approves lot sale. 4. Lot is sold to Builder or Buyer. 5. Builder constructs new home. 6. Projects must be completed within one year of HRA approval of the project. IV.Application Requirements The following must be submitted for application to the program: 1. $525 application fee An application fee must be paid at the time of application. This fee is non-refundable and is not part of the lot price. 2. Application Form 3. Construction Plans The layout of all levels, including basement and unfinished space, must be provided. 4. Elevations Elevations of all four sides of the house, including view of garage shall be provided. Colored renderings may also be required. 5. Site plan The site plan shall indicate the location of the new house, walkways and garage. 6. Landscaping plan A landscaping plan must indicate the location and type of trees, shrubbery, flowers and landscaping materials (e.g. rocks, mulch)and any existing trees to be preserved. 7. Detail of construction materials to be used on the project. 8. Green Community Concepts Plan The plan should indicate what Green Community Concepts will be incorporated into the project. 9. Construction timeline Construction must be completed with one year of the purchase of the property. 10. Signed contract with Builder 11. Purchase agreement If the Builder plans to purchase the lot, the application must include a valid purchase agreement between the Buyer and the Builder for the lot to be developed. 12. Financial capability statement A statement from a financial institution indicating willingness to provide sufficient construction capital to complete the project must be provided. B-4 401253v6 CBR RC 125-65 LI �a3 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 and a$10,000 mortgage in favor of the HRA will be filed on the property. The mortgage will be in first position. The HRA may consider subordinating its interest in appropriate cases. • 8.._ If the lot is sold to the Buyer and the Buyer fails to complete construction as approved by the HRA, the HRA may exercise its rights provided in the mortgage. B-5 401253v6 CBR RC 125-65 Li-a Li VI. House Design and Site Development Requirements The development of all sites shall meet the development criteria listed below, as reviewed and approved by the HRA. To maximize the development of a given lot, the HRA reserves the right to explore all development options without obligating the HRA to support any specific proposal, idea or solicitation. Housing design is a critical element of the program. Siding materials, exterior façade presentation, roof, window, siding and building line variability, finished landscape, interior space function and use are all important issues of design to the HRA. The design requirements were created to ensure that the homes built on the HRA-sold lots blend in with the surrounding neighborhood and respond to the specific concerns of the HRA. All new houses built under the Richfield Rediscovered Program must meet the requirements of the City's Zoning Code and additional criteria, as listed in this document. A. New House Standards 1. New dwelling must be owner-occupied. 2. Three finished bedrooms are required. 3. Two finished bathrooms are required. 4. Two-car garage is required. 5. A full basement is required, unless the selected design results in a split-level or a garden-level type of basement. In the case of an "accessible" house, a basement may be omitted if it would otherwise prohibit accessible design elements. B. Site Standards 1. After construction, the site must be fully landscaped, including plantings around the foundation. The entire grounds shall be landscaped and be aesthetically pleasing in all seasons. Land forms and plant materials shall be used to define the site and blend neatly with adjoining properties. Specific lot line blending requirements may be required, as appropriate,for specific sites. At a minimum, the applicant must meet the "Landscaping and Screening Requirements" in the City's Zoning Code under Section 544.03, Subd. 4, General landscaping requirements and Subd. 5, Residential sites. The code is available on the City's website: http://www.ci.richfield.mn.us To the greatest extent possible, existing trees should be preserved. Any trees removed must be replaced (they do not have to be the same species or in the same location) and should be labeled on the required landscape plan. 2. Utility meters shall be screened from street view and locations must be specified on plans. 3. Site drainage should be accommodated on the site so that water is directed away from the new home and the neighboring properties. Neighboring properties must not be disturbed by the creation of drainage swales. Specific storm water management requirements may be required, as appropriate, including the addition of gutters or on-site management for specific sites. Construction and the finished structure must not have a detrimental impact on storm water drainage patterns in the neighborhood. 4. All air conditioning units must be located in the rear yard of the house, or as approved by the HRA. B-6 401253v6 CBR RC 125-65 C. Construction Requirements 1. Existing trees identified on the landscape plan as being preserved, must be protected during construction. A tree wrap with board reinforcements shall be used on trees directly adjacent to active grading and construction areas. Damaged or destroyed trees must be replaced. 2. The construction site, neighboring properties and adjacent public streets shall be kept free of construction debris at all times. 3. No construction workers, construction equipment or construction material shall encroach upon neighboring properties. 4. The property shall have a new sanitary service line installed to the City sanitary sewer main consisting of schedule 40 PVC or equivalent. If there is an existing 6"sewer stub at the property line, it must be lined with 4" schedule 40 PVC or equivalent to the City's sanitary main, and it must include a"donut"at the end with cement. The line must be televised after installation to ensure the following: 1. There are no obstructions in the line. 2. The PVC liner is not protruding into the City's sanitary sewer main line. D. General Standards 1. The value of the new home must meet or exceed the minimum value specified in the Contract for Private Redevelopment. 2. All homes in the Richfield Rediscovered Program must be stick-built or high-quality modular, new construction. 3. Exterior materials (siding, soffit, doors and windows) should be low-maintenance and durable. Brick, aluminum, vinyl and fiber cement siding are preferred. Natural cedar lap is acceptable if properly stained or painted. Hardboard panels or hardboard lap siding are prohibited. Roof valleys must have metal valleys and not be woven. 4. Unit height and mass of the new house shall be compatible with the scale of the surrounding homes in the neighborhood. 5. Plans must present a balanced and pleasing distribution of wall, door and window areas from all views. 6. The dominance of the garage door must be minimized through placement, architectural detail, door design and utilization and design of windows. Garages, where the garage door faces the street, shall not be located closer to the front lot line than the foremost facade of the principal building facing the front property line. Garage sidewalls that face the street should appear to contain habitable space. This can be accomplished by incorporating windows and other design elements into the garage wall that are in character with the remainder of the dwelling. For lots that have alley access,the garage should be oriented to access the alley. 7. All Construction Plans must have been prepared in consultation with an architect or qualified draftsperson. All requirements by the Building Inspections Division must be met. 8. All Richfield Rediscovered houses must meet or exceed Minnesota Energy Code requirements. B-7 401253v6 CBR RC 125-65 9. All new homes shall be built to provide high quality sound insulation. Recommendations for sound insulation measures may be provided on a site-by-site basis. All construction must conform to current sound attenuation building standards for properties located in 65-69 and 70-74 DNL zones. 9. If a variance is required to construct the proposed development,the HRA may, at its sole discretion,choose to reject the application. 10. If the HRA accepts an application that needs a variance(s), sale of the property will be contingent upon the applicant obtaining the necessary variance(s). The Applicant is responsible for applying for the variance(s) at its own expense. The HRA, as owner of the property,will, however, cooperate with the application. E. Green Community Concepts Priority will be given to projects incorporating the green community concepts listed below. Any concepts the applicant would like considered during the application process should be explained in a written plan submitted with the application. A$5,000 rebate will be provided to the Applicant for projects that obtain certification through LEED for Homes, Minnesota GreenStar or Minnesota Green Communities. 1. Protect and conserve water and soil. To reduce water consumption, consider the use of water- conserving appliances, fixtures, and landscaping. Steps should be taken to minimize the loss of soil and sediment during construction and occupancy to reduce storm-water sediment and air pollution. 2. Minimize energy consumption. Reduce energy consumption by taking advantage of natural heating, cooling and day lighting, and by using energy-efficient appliances, equipment and lighting. 3. Enhance indoor environmental quality. Use non-toxic materials, ventilation and exhaust systems, and moisture control products and systems. 4. Use environmentally-preferable materials and resources. Use locally-produced, salvaged and/or manufactured materials, products with recycled content or from renewable sources, recyclable or reusable materials, and low-VOC-emitting materials. 5. Reduce waste. Reduce and manage wastes generated during the construction process and operation of buildings. If demolition occurs, sort and recycle leftover materials and debris. VII. City Review Procedure 1. Applicant reviews proposed project with HRA staff before plans are finalized. 2. Applicant submits application, plans, and application fee at least 45 days prior to the HRA meeting. 3. An application is considered to be received when delivered personally to HRA staff in a pre- arranged meeting. Following this meeting and upon receipt of the application fee, the lot will be considered reserved and no additional applications will be accepted for the proposed lot while the application is under review. B-8 401253v6 CBR RC 125-65 4. If an application is determined to be incomplete, the applicant will have 30 days to submit a complete application. If a complete application is not received within 30 days, the application will be rejected and the lot will be made available for new applications. 5. HRA staff review application to ensure conformance with House Design and Site Development Requirements. 6. HRA staff may reject or accept an application at its sole discretion. 7. The Builder or Buyer executes a Contract for Private Redevelopment. 8. An application is determined to be complete and the Contract executed at least three weeks prior to the HRA meeting. 9. HRA staff publishes a legal notice of the public hearing and prepares a report and recommendation for the HRA. 10. HRA reviews application, conducts a public hearing, and takes action at the HRA meeting. 11. If approved,the Contract for Private Redevelopment is executed by the HRA. VIII. Lot Sale to Builder or Buyer 1. Upon approval of the application by the HRA, a closing will be scheduled between the HRA and the Builder or Buyer. 2. The HRA will prepare all statements, affidavits, documents, and general release forms required for closing. 3. The Builder applies for a building permit prior to closing. The Builder is responsible for acquiring the necessary building permits with the City of Richfield Building Inspections Division. If changes to the plans are required by the Inspections Division, the applicant must notify HRA staff. 4. The Applicant provides evidence to HRA staff that all requirements to proceed with construction, as determined in the Contract for Private Redevelopment, have been met. 5. The HRA conveys the property to the Builder or Buyer by Quit Claim Deed.The site will be sold to the Builder or Buyer at the fair market value as appears on the Lot List. 6. At closing with the Builder, the Builder provides a Letter of Credit or cash escrow for $10,000 to the HRA. 7. At closing with the Buyer, the Buyer signs a mortgage and promissory note for$10,000 in favor of the HRA. 8. Upon completion of the project and closing on the sale of the Property to the Homeowner, the Letter of Credit or cash escrow is released to the Builder or the Buyer's mortgage is released. A Certificate of Completion is executed by the HRA, releasing the obligations of the Contract for Private Redevelopment. B-9 401253v6 CBR RC125-65 - ag IX. Program Marketing Richfield Rediscovered program marketing is entirely at the discretion of the HRA. It may include the following: 1. Buyer Solicitation. The HRA may market the program to potential Buyers through promotional articles, direct mail, the Internet, or other methods as deemed appropriate. Buyers may be any financially capable individual or household, including first-time buyers, move-up buyers or empty- nesters. 2. Public Promotion. a. The HRA will periodically provide information about the program through articles in city publications, on the City's web site, on the Community Cable channel, or via press releases to promote community awareness. b. A public open house may be held to provide an opportunity for residents and other interested parties to collectively view the finished homes. The Parade of Homes Fall Showcase and Spring Preview may also accomplish this. A program information package will be mailed to all interested participants. The information packet may include the following: 1. Lot List 2. Richfield Rediscovered Lot Sale Procedural Guidelines 3. Application Form 4. Sample Contract for Private Redevelopment X. Data Privacy All information secured through the program is subject to the Data Privacy Act. B-10 401253v6 CBR RC125-65 EXHIBIT C QUIT CLAIM DEED STATE DEED TAX DUE HEREON: $ Date: FOR VALUABLE CONSIDERATION, Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, Grantor, hereby conveys and quit claims to , a under the laws of the State of , Grantee, real property in Hennepin County, Minnesota, described as follows: , according to the map or plat thereof on file or of record in the office of the Hennepin County Recorder. This deed is subject to that certain Contract for Private Development between Grantor and Grantee, dated , 20_ (the "Contract"), recorded , 20_, in the office of the Hennepin County Recorder/Registrar of Titles as Document No. . The Contract provides that the Grantee's rights and interest in the real property described above are subject to the Grantor's right to re-enter and revest in Grantor title to the Property under conditions specified therein, including but not limited to termination of the Grantor's right to re-enter and revest upon issuance of a Certificate of Completion as defined in the Agreement. • (if more space is needed, continue on back) together with all hereditaments and appurtenances. ❑The Seller certifies that the seller does not know of any wells on the described real property. DA well disclosure certificate accompanies this document. DI am familiar with the property described in this instrument and I certify that the status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD Affix Deed Tax Stamp Here By Its Chairperson By Its Executive Director C-1 401253v6 CBR RC 125-65 y - 30 STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this day of , 20 , by , the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the corporation, Grantor. NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAK) SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this day of , 20_, by , the Executive Director, of Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the corporation, Grantor. SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAK) Check here if part or all of the land is Registered(Torrens)❑ Tax Statements for the real property described in this instrument should be sent to (include name and address of Grantee): This instrument drafted by: Kennedy& Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis,MN 55402 C-2 401253v6 CBR RC 125-65 EXHIBIT D WELL DISCLOSURE ❑ The Seller certifies that the seller does not know of any wells on the described real property. ❑ A well disclosure certificate accompanies this document. X The status and number of wells on the described real property have not changed since the last previously filed well disclosure certificate. D-1 401253v6 CBR RC125-65 ty Construction Notes Exterior Selections color/Type Square Footage BRANEIL 90%Efficient Fumece ASnyl Lap Siding Koyxn Sage 99 Basement 836 ANDERSSON Aide House Fan C;•4 '.E'S' Central Volume hr Retom System Gcs a to Water Heater Yn N Shakes Eding Ka y.Moss 508 First Floor 836 .. HVAC Venting for Dryer �j- Venting for Both Fax per Pon Stone WealYertxe-Mltl Hickory Second Floor 760 1.'/ 13 SEER Air Conditioner (rf�/ NO Humidifier Programmable R:ermastot Roofing Tam,Elite 3-Tab Weathered'Wood Geroge 440 -- 50 Callon Power Vented Water Healer Trim(FOSCia la Soffit) Kaycan Linen 10 Porch 88 A Sttit,SIGN NO Water Softener OF QUALITY • Sump Punlp Decorative Trim Kaycan Linen 10 NO Water Line to Fridge Ice Maker Rcugn-in Basement Oath Plumbing Basement Floor Drain per Plan Mndows White 4555 ERIN DRIVE 2 Frostproof Exterior.Spigots Bathroom Layouts per Plan Shutters Mid Americo Moss 283 SUITE 120 Kitchen Layout per Plan _ EAGAN,FIN 55122 Laundry Loycut per Pico PM:952-S98-0230 Plumbing Fixtures per Schedule Front Door Point to Notch Shakes(Moss 508) FAX:952-8950232 -150 Amp Electrical Panel Garage Door Point to Match Fascia(Linen to) -220V Range Outlet aectri001 -220V Dryer Placements Porch Posts Point Inset to Match Shakes(Moss 508 -Electrical Placements per Pleas Point Trim to Match Fascia(linen 10 ) -Lighting Fixture ngr Schedule ) Low Voltage Wring by Ykbco Porch floor Natural Cedar -8'-4"Basement Wall Height -e Main Floor CeCng Height Front light Fixtures 2-973580 Blacker Geroge -8' licit D uewa Ceiling HeigSl 1-973580 Black 0 PorcM1 Miscellaneous -36EW C Driveway -N6 W Concrete Sidewalk -NO Pala Rex Light Fixtures 1-961185 Black®Polio Door 3 NO Deck (It __ 5. V L1> s5 z Q tL m QooEa Q 0°moo 0 m _i Interior Selections Flootllr5 Ceiling Finish coLNnot style a nnian mm style s Flnian rte,addle,or stone Sanaande Plumbing k Appliance ugnung D `t (B Selections vbll Flnian CoUnlxtop Slyls k Cobr (Millwork,Interior Doors&Railing) Bath Accessories,pass.F:Shares Selections Sekctiore NM ai Standard Knockdown White Ceilings Brandy on Birch Teoherry on Poplar Princeton Trim Standard lKre Close(Reining I- Throughout '9'0110-Natural Choice SW7011 Hertford 0/4 Panel)Doors (ABC302 Base,980103 Casing) 1756-1 BPN Knobs cn Doors 3-POnel Chits Pointed -I 0963-1 BPN Handles on Drawers satin Nickel Polo Knobs Front Door Chelsea Hordleset W.Decdoolt Foyer Vinyl Benchmark Kingsbridg 1-810901 Brushed Nickel 3823 Armor Kitchen Vlnyt Benchmark Kingsbridge Postlerm Countertop Sterling 6 1/2 Deep Stoinless Steel Deep Double Basin 11400-3 4-RecesesO Lights by Elebtnicion 3825 Armor Wilsonorl Sunslone 4781-60 Kohler Ccsoois Faucet w/Side Spray K-15172-F 1-347601 Brushed Nickel a sink 30"Uppers,Islcnd per Pion GE Stainless Steel Appronce Packcge-Electric Dinette \4n9 Benchmark Kingsbridg 1-202201 Brushed Nickel DRAWN BY: 3825 Armor _ A.Wheeler Mudroom/ Ynyl Benchmark Kingsbridg Laundry Applicnces By Homeowner Alter Close 1-8109111 Brushed Nickel PLAN DATE: Laundry 3825 Armo. _ -_ -- V30/13 Family Room Elkins Tweed 2-810901 Brushed Nickel Limestone REVISIONS: alb Carpet Pad &DATE CO. Half Bath \inyl Benchark Kingsbridge NO Bath Accessories Sterling Mite Sacrcmento Pedestal Sink 44124 1-559201 Brushed Nckel 3825 Armor m Mirror w/Chrome Clips Kohler Perished Chrome Elongated Single Lever Vanity Fcucel 0-15182-F Kohler\rule H'gh'ine Elongated Comfort Height Toilet K-3611 Upper Level Hall Elkins Tweed Poplar Roil /Square Spindles 00 Newel 2-810901 Brushed Nickel 00 Stalra Limestone ®Bottom(Slain to Alatch idm) 001h Carpet Pod Main Both Vinyl Benchmcrk Son Dona Cultured Marble- NO Bath A cessar s Sink included with Mcrble Tep 1-550301 Broshed Nickel 3811 Mountain Mist 1CO1\Voile on lynile-Glossy Mirror 1e/Chrome Clips Kohler Polished Chrome Coro'a:s Single Lauer Vanity Puce(0-15182-F Kehler White Highline Elongated Comfort Height Toilet K-3611 Sterling White Accord 60"x 30"Bath Boy 71240110 Kehler Polished Chrome 00,01015 Both/Shower Faucet K-T15601-4 Master Bedroom Elkins Tweed 1-810901 Brushed Nickel Limestone 1-200104'While 0 VI.0 61b Carpet Pod Master Both Liny1 nchmark Son Dono Cultured Marble- i NO Bath 0000050705 Sink included with Morble Top 1-550301 Brushed N.ckel 3811 Mountain Mist IC01 Mite on Waite-Glossy Mirror w/Chrome Clips Kohler Polished Chrome Cordials Single Lever Vanity Faucet 6-15182-F U Kohler Waite Nigh'.Elongated Comfort Height Toilet K-3611 Reding-White Accord 60"x 30"Bath Bay 71240110 Z Kohler Polished Chrome Coroiois Bath/Shower Faucet K-T15601-4 Bedroom 92 Elkins 00000 1-810101 Brushed Nickel 0060 carpet Pod • ._- Z APPROVED: Bedroom 93 Elkins Tweed 1-8109111 Brushed Nickel Z Limestone 61'n Carpet Pod O N Opoonol Lever Level Unfinished tY Hall&stairs ill a Optional Lower Level L'ninlshed Z Family Room 4 PLAN, J CUSTOM Optional Lower Level Unfinished Bath z SCALE: -Optional Lower Level Unfinshed 4 AS NOTED tQ PRINT DATE: m Februeey 12,2013 O PAGE ® 1-0 • Li..... 33 DR A NDE ANDERSON it:PIM g-S' —.----::T---=----=- 49-ir 11----r- lEail 1—=-= '11■1--- .....-- ■... ___ Ao FS L,Q.1 RuLASt I crr-_,I Ce —=_= _.0.- III .._—---.-------"-- - --.--- -- _..._..._. ..._--=--'--M-" --- M -.1■1. —=11-1—. - --= -------- -_.„--- -= _ Ippr--...„--- --=..--. MINI■i■ ,.... 4555 ERIN DRIVE .- -...".- - "-=- -■•■■..-,...,"' ---.------.--•-- ... SUITE 120 -.. --- ■•■•-.-------...-...■ EAGAN,MN 55122 = ii/MIIMI m -- ' I T=. P1-1:552-s5S-0230 iii 111 .1- 1.-IIIM IIWI_ - - ......WII---I--------1=--'--- III'- '111-M"- FAx:952-555-0232 ' M LI--; _ .------.1=-••••---- --- -- . EMIIME - --. -,-- -11 = IIMMag --- , ___ .. .. . ' • D Ul , . • . • , . . . • 5: V tu cy RIGHT ELEVATION REAR ELEVATION LEFT ELEVATION 6 0)z ol 7 0 SCALE:1/8"•1,0° SCALE:We•1,0" SCALE:VS"•1,0" 0 0 0 E(1 LI-10k/ditt <0 f W 0 7 D 0 IT - -[. 0 E ' 0 fn LE 0 0 rq -I 0 ,t Lil ..0 1- 0 A adflik■ glEMINI11.1=1111...IFP:itirilh - Aniglith . . imh, .411111111011111M, .-"AliMIUMIIIIIh_. DRAWN BY: A.Wheeler -.--- 11■■ PLAN DATE: MEV IMO Ell IMO•ION ------ RE i REvISIONS, MEN••• 1111111111 I , _ — CONCRETE STOOP OR PORCH TO HAVE r ... .--7"••• '. WEATHER-RESIST1vE BARRIER BETWEEN IT AND THE WALL SHEATHING a RIM JOISTS elt ■IIIMINL,. M STOOP HEIGHT NOT TO BE MORE THAN/3" .IIII MN - 1_ El EJ 1.■ =Immo= - BELOW NE TOP OE THE THRESHOLD (E.I/2"BELOW THE SUBFLOOR, In rill - ri 1 - -=--- MEE[M0±0±0±0110:10 FLASH,NG SHALL BE INSTALLED CONTINUOUSLY MINIM = ABOvE ALL PROJECTING UJOOD TRIM INIIIIIIS • LI.1 — — Mi■M' V E .) -) 1 'i I _ 6 . IIII■i,== _ z • ..11.-=-=` ' ' " " " " ' ' M M-=t m • M 1 • r gm — —! TL. ) f C C ) 1 ' al'AP-Irl o • APPROVED: ' OAR Z - - _ _ _ - ADDRESS STONE 0 <0 424 STONE FACE I:g w 0 z ,:c PLAN: . FRONT ELEVATION _1 CUSTOM a SCALE 1/4"•r-o" z SCALE: 4 AS NOTED C/ to PRINT DATE: • February 12,2013 1 ■ . 0- PAGE 2-0 0, 14 "'"" '5.1-1 UICANDL ANDERSON'- 14',0.,'.$.E--,-1 44-0' A NICE SIGN / / OF QUALITY `. 28'-0° / / / 4555 ERR DRIVE 12-0° -/III 11'-0" SUITE 120 / j er.or / / / EAGAN,MN 55122 PH:952-898-0230 FAX:952-898-0232 \ II \ \ ir 8"x 100"CONC.WALL ..4.e!M1I/ 8"x 100"CONC.WALL;1 N. • \ ON 16"x 6"FOOTING i :® ON 16"x 8"FOOTING I Q o' 3 �R i4 m 30 fig3:R i:i: 8 Q 3 3 \ 3 BASEMENT �`11I1 BASEMENT O ID PRODUCT DESCRIPTION R.O.SIZE NOTES HINGE COUNT 1UU UNFINISHED \ '1w 4"CONC.SLAB OVER -'° m W`If WI CI-2836 WIMo44/J n0685 Eathwlee\White\Casement 2'-8"x 3'b' R I �' 4'CONC.SLAB OVER MOLT VAPOR BARRIER "' POLY VAPOR BARRIER - Z IU \ Q W — s NOTE:HEADERS TO BE(2)2X10 0 Z Q. milli B"x 100"CONC.WALL UNLESS OTHERWISE NOTED ON 16 x B"FOOTING NOTE: TN -8" nootri Q a UNLESS WINDOW OTHERWISE NOTED W O Q n—F / Qs O= S N a nOtaKU fp --rii- _ 0 co O —' ems...��o��nm��,,,, ��w-.s��u,,a3a,8&w��.V \ \ Q co Ill 1- ,� -•44 = , � 10'z 100'CONC.WALL �- 8"z 48"CONC.WALL �\ Q — W ON 16"z B'FOOTING v - ®� ! , ON 20'x 8'FOOTING J CO \ 1111ms•5. I i BASEMENT 1.1 III UNFINISHED wl:i _.9 N I' } 1 W 4'CONC.SLAB OVER ®1N o I: >.l-31 POLY VAPOR BARRIER Z : O DRAWN BY: 7.• I" I Q Q A.Wheeler i QCC m i IU x \+ I 111 Q Q PLAN DATE: 8"x 100"CONC.WALL I _ 0 Y -4 0 1/30/13 ON 16"x 8"FOOTING I'1 I n O UI nRREVISIONS: 12•-6• 1\1 ' Q Z [.L\DATE CO' �_I A _ Ifl NOTE:WHOLE HOUSE FA: \7 v r---vY i' �� CENTRAL VOLUME AIF RN ', • DIGITAL SETBACK T14?t108TAi f R/1 BATH IS :: •, i�� i'• X14 ■ TEe',� :4 _ 33 i i � : f aoe e"x 48"GONG.WALL : : � 1 e^ ON 16°z B'FOOTING i \ ..ten I. WM in ■Q POST Tcanue9 o I- 65PNALT ceveuAr EP F E3 TvEaTm eEATt r�J 9"s EJ N Z r�F� W 8' 10'-4" 10-4" j8' 2'-6 10"r 2'-10 12" E 0 21'-8' = APPROVED: BASEMENT/FOUNDATION PLAN SCALE:1/4"•1'-0" W Q z Q PLAN: J CUSTOM Z SCALE: Q AS NOTED PRINT DATE: 1 Febr�3y 12,2013 O PAGE t■• 3-0 L-I -- 3 BRANDL ANDERSON;. H00,VE-$ Al '- A Sl1Y.k SC N OF QUALITY 4555 ERIN DRIVE SUITE 120 44'-0' EAGAN,MN 55122 / _ r PH,952-998-0230 ID PRODUCT DESCRIPTION R.O.SIZE NOTES HINGE COUNT FAX:952-896-0232 n'-0" ■ / / / A PD-5068 WIndouu\Llndeay Earthwlee\WhIte\SIIding Ghee Door 5'-0"x 6'-S' Verity I B Front 2SL Doore\ExterIor\Front DoomW-Penei\2 SIdellghts 5-5 1/2"z 6'-1O I/2" R I 11'-6" 5'-0' .Ir 6 ' I4-0" C 2668 Garage Houee Doo s\Exterlor\Service Doore 2-10 3/8 x 6-IO I/2" R I / X / , , , D 16070 02 Doorc\G9eyaWerislWninw1at4d 16-3 z l-I" ON I ® W3 G 2468 OooraVMerior\PreVInIehed\Flush\M,Fle 2 6 x 6-11" L I l- - _ H 2468 Doore\Interlor\Prefinlehed\FIUth\Maple 1S x 6-II R I J 2668 Door„\ISBr \Premm.hed\Fluah\Maple 2•-5 x 6'-II' L I Ul PAN �'qy ° -- \ L Blrold 3068 Do o\Interlor'Pt I nlehed\Flueh\Map,e 3'-I I/4 x 6-10 R I Y m l •Tm W2 SL-6050(1/4-12-1/4)Wlr re\LIndeay EartiurieeVUhite\Sllder 6-0°x 5-0” Grlde X0X I uJ Qr P�EET etc w oer'csa • W3 SL-3030 Windowe\Lindeay Eathalee\WhIte\SIIder 3 O x 3-0 OX I ) 4 QQ VINYL FLOOR Q WT PU11-4020 WIndowe\Llndeay Earthelee\Whlte\Fixed 4-0 x 2-O N 6 IZlI N z KITCHEN{a ¢ECR4rre�,�,+I ' BATH O ,� '� Il±lw 1oot1 VINYL _Q O O 8'CEILING y° -� � + NOTE:HEADERS TO BE(2)2X10 N 0 I— VINYL FLOOR Nae `I j M i ® \ UNLESS OTHERWISE NOTED 0 Z Q(Lr fi• / a Q NOTE:WINDOW HEADERS w 6'-8" Z M y 1 C 15 UNLESS OTHERWISE NOTED Q O { i O V r� a 0-' .QV P11 ,.� 0 _ 'i o to O 41^�: ___= p y m W 0 ai 1 MUD ROOM W 0 • 1-- 0 TRUSSES m VINYL Q _O \ I m `^ Q BEAM UP ; y II m 5R e Q l' ' ' ' DRYWALL■FIRETAPE I I N DRAWN BY, O /� \ WALLS AND CEILINGS �-I I 1,__ova5 suss PER INC SECTION R309.2 I I O� PLAN DATE:Wheeler `/ 1/30/13 c WIC :;. 11.11111 II - REVISIONS: FAMILY, VINYL _ " GARAGE I I ODATE CO. 8'CEILING / N N W UNFINISHED CARPET o Q 4"GONG.SLAB S II a 17E" Y / GDO el / FOYER /9 I2"I-JOISTS 19.2"0.0. I I e'CEILING II VINYL FLOOR 4TRUb6Eb 24"O.G.J O—} 2 in 6 /9 32"I-JOISTS 19.2"O.C. I I J = II CO \ \ - - i- ' 1 o I , ________p �n <>,I.,a u a . . E ii 2 O o - iii g°_ 0 APPROVED: 4 z v BEAM<v r va Le N \ \ L FIRST FLOOR PLAN W 8° s'•2• 5'-2" 5'4° 5'-z° Jr/ II'-0" I1'-0" Q / 4 PLAN: / / / _y CUSTOM 44'-0° 0 SCALE: / / 4 AS NOTED W m PRINT DATE: February 12,2013 of O PAGE 4-0 3 c, BRANDS-.... ANDERSON H''O hi Si. J�f A SURE SSGN OF QUALITY 4555 ERIN DRIVE SUITE 120 EAGAN,MN 55122 PH:952-898-0230 FAX 952-898-0232 ■ 3 W 1 V W (Y 0 4 a NOTE:HEADERS TO BE(2)2X10 0 0 0 E QK UNLESS OTHERWISE NOTED - 1— Q Q NOTE:WINDOW HEADERS•6'-8" al QI Z UNLESS OTHERWISE NOTED W 38-0' Q D 0=Si / 6'-I 1/4" 2-5 3/4° 13'-10' / 1,1 TQ O,.V / / Y FRAME ram. / nOmR(O IN BOX POR .- 0, Q co ws iuEErROCK F uw 6F J , MASTER 0 O ,.WIRE SHELF r IL C GLOSEf .-J a �] L. �, WIC ,W \ �4,E N BOX BELOW r II A'� Ym W� CARPET r-3 � O U <6:kiRx CLEARANCE � VINYL 3i 3' --■o / BEDROOM•2 O�o a° ID O � 8'CEILING DRAWN BY :- — CARPET - A.Wheeler a 3 n \ O PLAN DATE uwn� (/30/13 I Q REVISIONS: 0 Q i� ��t QDATE CO' i \ OY I-IA OY 2� o MI6. OCARPET \ _ 4 - - MASTER BEDROOM \ - o 8'CEILING BATH -.T` s -� pEPROOM•3 O CARPET om VINYL 8'CEILING CARPET - SECOND FLOOR PLAN A W O SCALE:I/4'"1`-0" 3 L O W4 O W4 z al 1-6' Y 2.. 4.�. I 4•T. 4.5:: Y-6" 12'-0 145" 8-II" 2S" ' r / Y / / / 0 1 APPROVED: / I z 0 N PL W 0 z Q PLAN: J CUSTOM Q SCALE: Q AS NOTED It m PRINT DATE: • Febr9ay 12,2013 O"(5 PAGE ®, 8_Q . Li --" 3 ---) BRANDL 42" 21" If 12" 21° 21" 30" IS" MIN.31" ANDERSON E - IMMM H 0M.E 3 Illt!I'I II"II1I r �=• 1 IIiul y% �l �� ASIIRES(q. OF QUAL M' a\ O i_- 4555 ERIN DRIVE I IiIiiI avacE : =1` _ I:II:I SUITE 52-8 8- EAGAN,MN 55122 PN:952-898-0230 I FAX:952-896-0232 I I8" I 24" I 36° 1, 36" I 36" 18" I 30" 118•'I. MIN.31" I 24" I 24" I 38" 36• I • .i' •I' I. .1" .f• .Y .Y •f' ISLAND•Y •Y MAN BATI-1 •YMASTER�•BATH 3 ui Y Ul (X III a z a ooEa Q a Q M O I s � �ciu o I v m o of I- 0 r 11 e I -_}_- DRAWN BY: I I A.Wheeler ro I I PLAN DATE: I= C. I r 1/30/13 I r. I REVISIONS: I I m &DATE CO. I I v I I o muutnttnttntttuarta tR1RIO IBBR ttR111ROMUM!nttmttt' ==111.®=====I♦,' I -_' I I I = I I m = 7 A Q 0 I a z I I = 21 I y, I = lu ~ I I I I I I I I I I I J 1 I I i==; I I I I I I : } L i1II0V30 • _= I }_—_}._— : : I J CUSTOM I I z SCALE: Q AS NOTED it ::. al PRINT DATE: I I CROSS SECTION r' I } 01.. Februrry 12,2013 L — „ ® O PAGE C ® 6-O 13RANDL ANDERSON H O`M;E $. COUNT SYMBOL ELECTRICAL ` J 4 1r,Y t Exterior Light III ? A SURE SIGN �tt�T Of QUALITY 2 O Exterior Outlet t1 3 R r1i Bath Fan 4555 ERIN DRIVE SUITE 120 5 -. =t Keyless LI$nt Fixture EAGAN,MN 55122 �/ P12:952-598-0230 15 -0l FAX:952-598-0232 - Light Fixture 4 ® PullchaIn Light 4 Org" Recessed Light _ I Multi Media Jack III 0 r I I q Telephone Jack ',Ili i i Ili i•, ill} Ili: : ., I VD 20amp Laundry CIrcu% 1311 u - r �•' v< • I 11P'Y Elea Dryer 2200 Outlet 5 _ I WU w W --' DINETTE �_�- ^-- ■r1A I MF°"✓3' Elea Range 220V Outlet u }Wr -- KITCHEN a">'y BATH I �w..4 lelano Outlet Q O O 7 a iti�� ztrvej° ;� J, 38 Outlet tt) Z(Lb IPWI, �9T� \ 3 �w Outlet Gfl Qs v4 111` /{, Z In O LL ` ��77--/ ''9'r __T I W1 Sump Pump Outlet 4 s Q=SO /r \ �`. i Q :"ltNvt�* dl , \ Q: I iso 150 amp Panel Q Qr Q `\ 4i _-----_, 52 Air Tight Box Q 4.—— X11 U Y 2'y I Chime SO __, O IU _•„_ _�_, �e rt? I eit, Smoke-CO Detector O 5 B Smoke Detector —1 3' / \ I Q T-Slat I W $ 5altch b e Switch 3 way 4DRAWN BY`\ A.Wheeler / \ NOTES: PLAN DATE: # Mill -ALL ELECTRICAL OUTLETS 4 FIXTURES I/30/13- WIG = PLACED ON EXTERIOR WALLS OR CEILINGS REVI910NS: FA// b \ GARAGE MUST USE A VAPOR BARRIER SEALED ELECTRICAL BOX &DATE CO• MILY / Mill \ -ALL ELECTRICAL PLACEMENTS ARE SUBJECT TO d Ill / I ` CHANGE DUE TO CODE OR FRAMING ISSUES 000 \ -PLACEMENT OF ELECTRICAL SERVICE WILL BE FOYER ON SIDE OF GARAGE OR NOUSE CLOSEST TO 4 SERVICE MAIN CONNECTION 4 (PLACEMENT TO BE VERIFIED s PRE-DIG MEETING) z 1 :din ''''■ 0 AA a.m r l( .7 ', _, FIRST FLOOR ELECTRICAL PLAN O u APPROVED: ® 0 0 w W 9 4 PLAN: _.4 CUSTOM CI SCALE: Q AS NOTED v m PRINT DATE: l February 12,2013 O PAGE 1-0 • 1 BRANDL ANDERSON t A SURE SIGN O of QUALITY BASEMENT BASEMENT 4555 ERIN DRNE ❑ �I NOTES SUITE 120 ® -I'}-i1 -ALL ELECTRICAL OUTLETS 4 FIXTURES EAGAN,MN 55122 PH:952-898-0230 PLACED ON EXTERIOR WALLS OR CEILINGS FAX:952-898-0232 MUST USE A VAPOR BARRIER SEALED ELECTRICAL BOX -ALL ELECTRICAL PLACEMENTS ARE SUBJECT TO CHANGE DUE TO CODE OR FRAMING ISSUES 0, -PLACEMENT OF ELECTRICAL SERVICE WILL BE ON SIDE OF GARAGE OR HOUSE CLOSEST TO B _ - ELECTRICAL SERVICE MAIN CONNECTION ® I (PLACEMENT TO BE VERIFIED O PRE-DIG MEETING) V HI -- ' In .1- To 0 rn .4 BASEMENT I I 1 1` 0uko I I 0 4 CP - --\ a1 p N. o "----_1:::)d BASEMENT ELECTRICAL PLAN I1_____ 0 I---I SCALE:I/4"•1-0" 9ox a FURN a 0 ____�,,1 --- t DRAWN BY: X 0 PLAN DATE: 1/30/13 REVISIONS: DATE CO• cL- I III i1l) : `rl \g,41-1-PEI �*2 1� T00M52 II1 / �II �' _ICiiiii III '}n z / ' _ III 1t I-I �.\ - \ 0 APPROVED: MASTER BEDROOM = / _ _ Z ATI-I �E OOM*3 0 w - o z ._; __ Q PLAN: O•_ _-, CUSTOM lIy I (Ili I 'III' z SCALE: 4 ' 4 AS NOTED IY. (Q PRINT DATE: Februty 12,2013 SECOND FLOOR ELECTRICAL PLAN -� PAGE 2 SCALE:1/4.•1,0" a-0 t r f 4. f E ._ 413 '' 1 c% 01 V....4 CA. ib '.1' -t: -7,3 (,) -)1 to > IQ ---cp ...- ' . F, c' --- , C> Z . 3 Ix k , 6), , 0,\ "-:=,--, --h Z I, 3 Ci) .- . r C ?:‘, ,V7- ./('''' C-e.----, ( 4 cr .. '' 7 `..9.6 r c. zis -57 6 7 rt- 4, 14-41 ,. il< 4 4t - .fr I T*.s ..........\ q I ft V' , % , , Qs„, V) 1 e4 r() F-1 11 .- r , 1 Q , 1 .,--- (....k. ..—.5' so 1 i , 74 < — . , ---.6. - -- _.___.— ._....._____________ • • I T, , :,,.. c,..,, AGENDA ITEM#: 5 REPORT#: 24 STAFF REPORT RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY MEETING FEBRUARY 19, 2013 REPORT PREPARED BY: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: ® ; SIGNATU, REVIEWED BY EXECUTIVE DIRECTOR: r' ITEM FOR HRA CONSIDERATION: Appointment of members of the Richfield Housing Visioning Task Force. I. RECOMMENDED ACTION: By Motion: Appoint designated members to the Richfield Housing Visioning Task Force. II. BACKGROUND At the January 23, 2013 Housing and Redevelopment Authority (HRA) meeting, staff had submitted a list of 25 people who had indicated an interest in serving on Richfield's Housing Visioning Task Force with a recommendation that 19 of those people be appointed to the Housing Visioning Task Force. At that meeting, HRA Commissioners expressed a desire to continue the recruiting process and to hold interviews of each interested person prior to making such an appointment. Since that time, an additional 13 potential task force members have submitted a form indicating their interest in serving on the Task Force; bringing the total applicant pool to 38. The HRA held interviews of applicants on February 9th, February 17th and February 19th. 02192013 Housing Task Force Based on the written information supplied by the applicants and the outcome of the interviews, the HRA will designate a number of people to serve on the Task Force. Staff is recommending the appointment of no more than 20 nor fewer than 12 people to serve on the Task Force at the recommendation of the consultant who will be facilitating the Housing Visioning process. Applications to serve on the Task Force are still being accepted until 4:30 p.m. on Thursday (February 14th) and staff will continue to schedule interviews until Friday (February 15th) at noon. The list of applicants, therefore, will be emailed to HRA Commissioners on Friday afternoon. 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 • Appointment of Task Force members at the February 19th meeting will allow the Housing Visioning process to conclude by June 25th. C. FINANCIAL • N/A D. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATIONS) • Continue the recruiting process in order to identify additional candidates. V. ATTACHMENTS • A summarized list of Housing Visioning Task Force applicants will be emailed to HRA Commissioners the afternoon on Friday, February 15th. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Housing Visioning Task Force applicants were made aware of this meeting and some may be in attendance.