091613completeagenda
CITY OF RICHFIELD, MINNESOTA
MONDAY, SEPTEMBER 16, 2013
RICHFIELD MUNICIPAL CENTER
6700 PORTLAND AVENUE
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SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY WORKSESSION
BARTHOLOMEW ROOM
7:00 P.M.
AGENDA
Call to order
Roll call
1. Discussion regarding development proposals for Cedar Point II development area
Notes: _________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
Adjournment
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REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
COUNCIL CHAMBERS
7:45 P.M.
AGENDA
Call to order
Roll call
1. Approval of the minutes of the (1) Special Concurrent HRA and City Council
Worksession of August 19, 2013; and (2) Regular HRA Meeting of August 19, 2103
2. HRA approval of the agenda
th
3. Consideration of a proposal made by the owners of 6844-10 Avenue for a settlement
of a $30,000 deferred loan in the amount of $26,094.28
Staff Report No. 45
Notes:
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
4. Consideration of a resolution allowing the acceptance of monetary support solicited for
the 2013 Landscaping Good Neighbor Award
Staff Report No. 46
Notes:
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
5. Consideration of giving staff formal direction on seeking proposals for the Cedar Point
II Development Area
Staff Report No. 47
Notes:
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
6. HRA discussion items
Notes: ___________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
7. Executive Director Report
Notes: ___________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
8. Claims and Payroll
Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must be
made at least 96 hours in advance to the City Clerk at 612-861-9738.
HOUSING AND REDEVELOPMENT
AUTHORITY MINUTES
gt:e*eedRichfield, Minnesota
Special Concurrent HRA and
City Council and Worksession
August 19, 2013
CALL TO ORDER
The meeting was called to order by HRA Chair Sandahl and Mayor Goettel at 6:04 p.m. in the
Bartholomew Conference Room.
ROLL CALL
HRA Members Sue Sandahl, Chair; Steven J. Quam; Doris Rubenstein; Debbie Goettel; and
Present: David Gepner (arrived 6:44 p.m.)
Council Members Debbie Goettel, Mayor; Pat Elliott, and Sue Sandahl.
Present:
Council Members Edwina Garcia and Tom Fitzhenry.
Absent:
Staff Present: Steven L. Devich, City Manager/Executive Director; John Stark, Community
Development Director; Christine Costello; Economic Development
Coordinator; and Cheryl Krumholz, Executive Coordinator.
Item # 1 DISCUSSION REGARDING CEDAR POINT HOUSING REDEVELOPMENT AREA
(HRA MEMO NO. 39 AND COUNCIL MEMO NO. 71)
Community Development Director Stark provided the background related to the Cedar Point
Redevelopment Area that included development of higher-density residential housing in the two
blocks known as the Phase II Housing Redevelopment Area. He continued that the main impetus of
the plan was and is to convert single-family land uses and structures that are incompatible with noise
generated by the MSP Airport.
Community Development Director Stark explained the Request for Qualifications (RFQ) and
Request for Proposal (RFP) process and distribution to developers. He stated that staff received one
formal proposal from Sherman Associates for the development of senior housing and office/retail
which will be built in a later phase.
Since the closing of the process, staff has been made aware of another developer who was
not included in the distribution process and requested an opportunity to submit a proposal. The
development was advised that they could submit a proposal but nothing has been received to date.
Special Worksession Minutes -2- August 19, 2013
Economic Development Coordinator Costello discussed the noise mitigation consent decree
to which the City and the Metropolitan Airports Commission jointly agreed.
Andy Hughes, Sherman Associates, explained the limitations of the site for redevelopment
and that a market study indicated a strong demand for senior housing. He added that market rate
housing is not an option for this site because it is better suited for transitional housing. He stated
Sherman Associates is interested in continuing to work with the City.
Mr. Hughes stated that the proposal presented this evening is the exact same as that
presented to the HRA on June 17, 2013. Sherman Associates believes this is the best fit for the site.
HRA Commissioner/Mayor Goettel questioned the lack of mixed use and expressed concern
regarding the shadow impacts from the height of the buildings. She continued that she had hoped for
something different than senior housing.
HRA Commissioner Rubenstein expressed agreement with Commissioner Goettel that there
is no difference from the proposal in June.
HRA Commissioner Quam questioned the sound attenuation differences in the proposed
100% affordable versus 55+ market rate housing.
Mr. Hughes explained that senior housing demands are more internal and affordable housing
provides opportunities for other income sources needed to assist with funding gaps.
HRA Commissioner/Mayor Goettel and HRA Commissioner Rubenstein requested staff seek
other developers for new proposals and that the Housing Visioning Task Force values and concepts
be included.
Council Member Elliott stated that there needs to be a realistic approach with the airport so
close to the site.
HRA Commissioner Gepner arrived at 6:44 p.m.
Executive Director/City Manager Devich explained the original use for the proposed site. He
reminded the HRA and Council of the HRA's financial obligation on the assessments.
HRA Chair/Council Member Sandahl stated multi-family housing made sense and suggested
market rate be included.
HRA Commissioner Quam stated he believed the 100% affordable housing was the biggest
issue.
Community Development Director Stark explained the next step would be the HRA to formally
consider an exclusive rights agreement for Sherman Associates.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:00 p.m.
Date Approved: September 16, 2013.
Suzanne M. Sandahl
Chair
Cheryl Krumholz Steven L. Devich
Executive Coordinator Executive Director
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
geAtieed Richfield, Minnesota
Regular Meeting
August 19, 2013
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:03 p.m.
ROLL CALL
HRA Members Sue Sandahl, Chair; Doris Rubenstein; David Gepner; Steven J. Qum;
Present: and Debbie Goettel
Staff Present: Steven L. Devich, Executive Director; John Stark, Community
Development Director; and Cheryl Krumholz, Executive Coordinator.
Item #1 APPROVAL OF MINUTES OF (1) REGULAR HRA MEETING OF JULY 15, 2013
AND (2) SPECIAL HRA MEETING OF JULY 29, 2013
M/Goettel, S/Rubenstein to approve the minutes.
Motion carried 5-0.
Item #2 HRA APPROVAL OF AGENDA
M/Gepner, S/Rubenstein to approve the agenda.
Motion carried 5-0.
Item #3 CONSENT CALENDAR
A. Consideration of approval of authorizing.staff to enter into a professional services contract
with Shadid MARKET(ing)SM Consulting, LLC for services related to research and planning
of marketing housing programs to Richfield residents S.R. No. 40
B. Consideration of approval of a resolution consenting to a driveway easement and a
reciprocal easement agreement relating to the Lyndale Gardens development S.R. No. 41
HRA Meeting -2- August 19,2013
HRA RESOLUTION NO. 1162
RESOLUTION CONSENTING TO EASEMENTS FOR THE BENEFIT OF LYNDALE GARDENS
LLC AND LAKEWINDS NATURAL FOODS COOPERATIVE
This resolution appears as HRA Resolution No. 1162.
M/Goettel, S/Quam to approve the Consent Calendar.
Motion carried 5-0.
Item #4 PRESENTATION AND CONSIDERATION OF ACCEPTING RICHFIELD HRA
ANNUAL TAX INCREMENT DISTRICT STATUS UPDATE S.R. NO. 42
Rebecca Kurtz, Ehlers and Associates, presented the HRA annual Tax Increment District
status update.
M/Sandahl, S/Goettel to approve the Richfield HRA annual Tax Increment District status
update.
Motion carried 5-0.
Item #5 PUBLIC HEARING AND CONSIDERATION OF A RESOLUTION AUTHORIZING
THE SALE OF 6808— 14TH AVENUE TO JON PUES AND KATHLEEN F. WALSH-
PUES AND A CONTRACT FOR PRIVATE DEVELOPMENT WITH JON PUES AND
KATHLEEN F. WALSH-PUES FOR THE CONSTRUCTION OF A SINGLE FAMILY
HOME UNDER THE RICHFIELD REDISCOVERED PROGRAM S.R. NO. 43
Community Development Director Stark presented HRA Staff Report No. 43.
Jon Pues, applicant, was present for questions.
M/Gepner, S/Goettel to close the public hearing.
Motion carried 5-0.
M/Rubenstein, S/Quam that the following resolution be adopted and that it be made part of
these minutes and to approve a contract for private development with Jon Pues and Kathleen F.
Walsh-Pues for the construction of a single family home under the Richfield Rediscovered Program:
HRA RESOLUTION NO. 1163
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT
6808 14th AVENUE TO JON PUES AND KATHLEEN F. WALSH-PUES
Motion carried 5-0. This resolution appears as HRA Resolution No. 1163.
Item #6 CONSIDERATION OF RESOLUTIONS APPROVING THE 2014 PROPOSED HRA
BUDGET AND TAX LEVY AND 2013 REVISED HRA BUDGET S.R. NO. 44
Community Development Director Stark presented Staff Report No. 44.
HRA Meeting -3- August 19,2013
M/Sandahl, S/Rubenstein that the following resolutions be adopted and made part of these
minutes:
HRA RESOLUTION NO. 1160
RESOLUTION APPROVING PROPOSED 2014 HOUSING AND REDEVELOPMENT AUTHORITY
BUDGET AND CERTIFYING THE 2014 TAX LEVY
HRA RESOLUTION NO. 1161
RESOLUTION AUTHORIZING REVISION OF THE 2013 BUDGET OF THE
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD
Motion carried 5-0. These resolutions appear as HRA Resolution Nos. 1160 and 1161.
Item #7 HRA DISCUSSION ITEMS
Community Development Director Stark provided an update on the 66th Street Corridor.
Item #8 EXECUTIVE DIRECTOR REPORT
Executive Director Devich stated the HRA budget reflects the revitalization of innovation and
creativity in marketing Richfield.
Item #9 CLAIMS AND PAYROLL
M/Sandahl, S/Goettel that the following claims and payrolls be approved:
U.S. BANK 08/19/13
Section 8 Checks: 123789 - 123914 $ 170,919.00
HRA Checks: 31807 - 31832 $ 106,765.50
TOTAL $ 277,684.50
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:54 p.m.
Date Approved: September 16, 2013
Suzanne M. Sandahl
Chair
Cheryl Krumholz Steven L. Devich
Executive Coordinator Executive Director
AGENDA ITEM#: 3
REPORT#: 45
STAFF REPORT
ee ee HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
SEPTEMBER 16, 2013
REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON,HOUSING
SPECIALIST
NAME,TITLE
REPORT PRESENTER: KAREN BARTON, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: 0- A%��
REVIEWED BY EXECUTIVE DIRECTOR: 1 /
ITEM FOR HRA CONSIDERATION:
Consideration of a settlement of a Housing and Redevelopment Authority Deferred Loan.
I. RECOMMENDED ACTION:
By Motion: Approve or deny a proposal made by the owners of 6844
10th Avenue for a settlement of a $30,000 Deferred Loan in the
amount of $26,094.28.
II. EXECUTIVE SUMMARY
Eugene and Jennifer Shold (Homeowners) are requesting that the Housing and
Redevelopment Authority (HRA) accept a settlement of$26,094.28 for a $30,000
HRA Deferred Loan. The Deferred Loan Program provides assistance with home
maintenance and repairs and is funded with Community Development Block Grant
(CDBG) funds.
The Homeowners have received an offer to purchase their property for $199,000;
however, the amount they owe on the property is $290,293.72. The first mortgagor
has agreed to accept a settlement of$143,000 for a first mortgage of$230,388.
Acceptance of the settlement offer by the HRA will enable the Homeowners to avoid
foreclosure.
09162013 Loan Settlement Request 6844 10`h.docx
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• In 2006, the Homeowners received a Deferred Loan in the amount of
$30,000 in order to make necessary repairs to their home. The loan is
deferred with no payments or interest, and is forgiven after 30 years. If
the property is sold or transferred within the 30 year period, the loan
becomes due and payable.
• Due to financial and personal reasons, the homeowners are
attempting to sell the property to avoid foreclosure. They have
received three offers on the property, the highest of which is $199,000
(the current Estimated Market Value is $180,000). After paying off the
first mortgage, fees and commissions, closing costs, and City-required
repairs, the settlement leaves the homeowners $3,905.72 short of
covering all costs.
Debt Amount Owed I Proposed I Settlement
e Ratio
Settlement Rat o
First Mortgage (Mortgage $230,388 $143,000 1 62%
Depot)
New Home Second Mortgage $30,000 : $26,094.28 1 87%
HRA
Seller Paid Concessions
$5,970..... $5,970......1..................................................._100%.....
.......................................... .
Settlement Charges $20.,025.60..; $20,025.60 ' 100%
Taxes/Water $3 91._0 1 2.....e $3,910.12 /o 100
o
TOTAL . ......................_...............................................................................................:...................._$290,293.72.....!............... $199,000.00..................................................68...5%..._
B. POLICY
• The HRA acts to protect its financial interests.
• The Mortgage Foreclosure Response Program Procedural Guidelines
state as follows: "Staff will consider short sale offers and negotiate as
high of repayment as possible. Action will be taken quickly so as to not
disrupt the short sale opportunity and cause the homeowner to enter
into foreclosure."
• The purpose of the Deferred Loan Program is to provide loans to
Homeowners earning less than 80 percent of the Twin Cities Area
Median Income (AMI) to make improvements that address health and
safety or property maintenance items.
C. CRITICAL TIMING ISSUES
• If the HRA and the Homeowners cannot reach an agreement
regarding the payoff of the HRA mortgage, the property will be
foreclosed upon. The Sheriff's sale was held in June 2013. The six-
month redemption period will expire in December at which time the
first mortgagor will take ownership of the property.
• The purchase agreement requires the Homeowners to close on or
before October 21, 2013.
D. FINANCIAL
• The attached letter from the Homeowners describes the financial
difficulties they have encountered that have led to foreclosure.
• The first mortgage lender has agreed to a redemption amount of
$143,000. This amount is 62 percent of the $230,388 total amount
owed.
• The HRA has a subordinated position to the primary lender. If the
property is foreclosed by the lender, the HRA would likely receive
nothing.
• Neighborhoods in which there are one or more foreclosed and vacant
homes have detrimental impacts on the surrounding property values.
• The loan was funded with CDBG funds. The HRA established the
requirement that a borrower must repay the loan at the sale of the
property. There is no federal requirement to repay the funds.
• The HRA has received five requests for a short sale settlement in the
past two years. The HRA agreed to the following settlements:
o $2,500 out of$25,000 (10%)
o $1,000 out of$1,577 (63%)
o $0 out of$8,249.95 (0%)
o $2,600 out of$26,000 (10%)
o $5,040 out of$10,080 (50%)
E. LEGAL
• Legal counsel has confirmed the HRA's authorization under a short
sale.
IV. ALTERNATIVE RECOMMENDATION(S)
• Deny the proposed settlement.
• Propose a different settlement amount.
• Authorize staff to negotiate a settlement amount within certain parameters.
V. ATTACHMENTS
• Letter from Eugene and Jennifer Shold, 6844 10th Avenue South
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Eugene and Jennifer Shold, Homeowners
Eugene (Geno)and Jennifer(Jeni) Shold
6844 10th Avenue South
Richfield, MN 55423
Re: Property: 6844 10th Ave S., Richfield, MN 55423
Hardship Letter relating to Current Mortgage Foreclosure
Subj.: Mortgage Foreclosure Short Sale
To Whom It May Concern
Our mortgage foreclosure hardship began in January, 2009. Being a very small self-employed
corporation at the time, a client withheld paying their$55,000 invoice.This put our family in a tight
financial situation. In October, 2009,and again in December, 2009 Geno underwent necessary shoulder
surgeries. Each surgery required 3-4 months recovery with no use of each shoulder. Being self-employed
at the time,we did not have an income for seven months.
We entered foreclosure with our home approximately June, 2010. In June, 2013 our home had the
sheriff sale. We would like to short sale our home to help our family move forward.Your help in this
process would be greatly appreciated!
Sincerely
Eugene (Geno) and Jennifer(Jeni)Shold
AGENDA ITEM#: 4
REPORT#: 46
STAFF REPORT
ee'ge HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
SEPTEMBER 16, 2013
REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON,HOUSING
SPECIALIST
NAME,TITLE
REPORT PRESENTER: KAREN BARTON, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
• NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: ••
r�f
REVIEWED BY EXECUTIVE DIRECTOR: I 41/ AIM
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution accepting contributions for the 2013 Landscaping Good Neighbor
Award.
I. RECOMMENDED ACTION:
By Motion: Approve a resolution allowing the acceptance of
monetary support solicited for the 2013 Landscaping Good Neighbor
Award.
II. EXECUTIVE SUMMARY
The Community Development Department has solicited donations to be used as
prizes for the Landscaping Good Neighbor Award. Three businesses have provided
funds and gift certificates for the 2013 awards. The Richfield/Bloomington Credit
Union donated $150.00 to be used for gift cards for all ten semi-finalists. The top
three winners will receive two additional gift cards each. Wagners Garden Center
donated $90 in three $30.00 gift cards and Linder's Garden Center donated $150 in
three $50.00 gift cards. State law requires the Housing & Redevelopment Authority
(HRA) to receive the funds by resolution.
III. BASIS OF RECOMMENDATION
09162013 Acceptance of LGNA Donations.docx
A. BACKGROUND
• For 15 years, the Community Development Department has offered awards
to homeowners who beautify their neighborhood with exceptional gardens
and landscaping.
• Every year, the Department solicits donations from local businesses to offer
as prizes to the winners.
B. POLICY
• The Administrative Services Department issued a memo on
November 9, 2004 requiring that all grants and restricted donations to
departments be received by resolution and passed in accordance with
Minnesota Statute 465.03.
C. CRITICAL TIMING ISSUES
• Donations have been received and used for the program as indicated
by the donors.
D. FINANCIAL
• The financial donations have been deposited in the Fund supporting
the designated program.
• RBCU donated $150.00 to cover ten $15.00 gift cards, which staff
purchased from Menards.
• Wagners Garden Center donated three $30 gift cards ($90 total).
• Linder's Garden Center donated three $50.00 gift cards ($150 total).
E. LEGAL
• Minnesota Statute 465.03 requires that every acceptance of a grant or
devise of real or personal property on terms prescribed by the donor
be made by resolution.
IV. ALTERNATIVE RECOMMENDATION(S)
• Return the donations to the donors.
V. ATTACHMENTS
• Resolution approving the acceptance of donations.
• List of donations and specified areas for the donation to be applied.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
- 1
RESOLUTION NO.
RESOLUTION AUTHORIZING RICHFIELD COMMUNITY DEVELOPMENT
DEPARTMENT TO ACCEPT DONATIONS FROM THE LISTED BUSINESSES FOR
DESIGNATED USES
WHEREAS, the Community Development Department, received checks and gift
cards from the following for the 2013 Landscaping Good Neighbor Award;
Richfield Bloomington Credit Union
Linder's Garden Center
Wagner's Greenhouses
and,
WHEREAS, Minnesota Statute requires every acceptance of a grant or devise of
real or personal property on terms prescribed by the donor be made by resolution; and,
WHEREAS, the donated funds will be used towards the designated events
sponsored by Richfield Community Development Department.
NOW, THEREFORE, BE IT RESOLVED that the Director of Community
Development will accept and distribute the donations as specified.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 16th day of September, 2013.
Suzanne M. Sandahl, Chairperson
ATTEST:
Doris Rubenstein, Secretary
� -a
Checks or Gift Cards Received
2013
Business Name Amount of Donation Designation
$150.00
Richfield/Bloomington Landscaping Good
Credit Union (RBCU) (to be used for ten $15 Neighbor Award
gift cards)
Cinder's $150.00 Landscaping Good
(three $50 gift cards) Neighbor Award
Wagner's Greenhouses $90.00 Landscaping Good
(three $30 gift cards) Neighbor Award
Total: $390.00