121613completeagenda CITY OF RICHFIELD, MINNESOTA
MONDAY, DECEMBER 16, 2013
RICHFIELD MUNICIPAL CENTER '
6700 PORTLAND AVENUE
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
Call to order
Roll call
1. Approval of the minutes of the Regular HRA Meeting of November 18, 2013
2. HRA approval of the 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 necessa . However an HRA Commissioner ma re uest that an item be removed
rY � Y Y q
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 the approval of the annual Consultant Services Agreement with the
Greater Metropolitan Housing Corporation for 2014 S.R. No. 54
B. Consideration of the approval of an amended resolution approving an Interfund
Loan relating to District 2010-1 (Woodlake Housing) S.R. No. 55
C. Consideration of the approval of a resolution authorizing an interfund loan from the
HRA's General Fund for advance of certain costs up to $200,000 in connection with
the Cedar Avenue Tax Increment Financing District S.R. No. 56
Notes:
4. Consideration of the execution of a Contract for Private Development between the HRA
and Endres Custom Homes, Inc. for the redevelopment of 7215 Logan Avenue
contingent upon City Council approval of a subdivision waiver
Staff Report No. 57
Notes:
5. HRA discussion items
Notes:
6. Executive Director Report
• Launching of electronic HRA agenda packets in January
Notes:
7. 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
� , � r
Richfield, Minnesota
�
Regular Meeting
November 18, 2013
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:01 p.m.
OATH OF OFFICE TO HRA COMMISSIONER MARY SUPPLE
City Clerk Gibbs administered the oath of office to HRA Commissioner Mary Supple.
ROLL CALL
HRA Members Sue Sandahl, HRA Chair; Doris Rubenstein; David Gepner; Mary Supple;
Present: and Debbie Goettel
Staff Present: Steven L. Devich, Executive Director; Karen Barton, Acting Community
Development Director; Martha Ingram, HRA Attorney; and Nancy Gibbs,
City Clerk.
Item #1 APPROVAL OF MINUTES OF THE (1) SPECIAL CONCURRENT HRA AND CITY
COUNCIL WORKSESSION OF SEPTEMBER 10, 2013; AND (2) REGULAR HRA
MEETING OF OCTOBER 21, 2013.
M/Rubenstein, S/Gepner to approve the minutes.
Motion carried 5-0.
Item #2 HRA APPROVAL OF AGENDA
M/Goettel, S/Rubenstein to approve the aaenda.
Motion carried 5-0.
Item #3 RECOGNITION OF FORMER HRA COMMISSIONER STEVE QUAM
HRA Meeting -2- November 18,2013
Chair Sandahl presented former HRA Commissioner Steve Quam with a certificate of
appreciation.
Former HRA Commissioner Quam thanked the HRA and welcomed new HRA
Commissioner Mary Supple.
Item #4 CONSENT CALENDAR
A. Consideration of the approval of the transfer of assets to close out the Interstate-Lyndale-
Nicollet Capital Project Fund and the Interstate-Lyndale-Nicollet Tax Increment Fund S.R.
No. 51
B. Consideration of the approval of a contract with All Metro Excavating, Inc. for the demolition
of structures at 7427 Pillsbury, 6525-15th Avenue and 6416-16th Avenue S.R. No. 52
M/Gepner, S/Rubenstein to approve the Consent Calendar.
Motion carried 5-0.
Item #5 CONSIDERATION OF AN AMENDMENT TO THE CONTRACT FOR PRIVATE
DEVELOPMENT BETWEEN THE HRA AND WOODLAKE RICHFIELD
APARTMENTS, LLC (A.K.A. LYNDALE PLAZA APARTMENTS) AND TO
AUTHORIZE THE HRA CHAIR AND EXECUTIVE DIRECTOR TO EXECUTE THE
DOCUMENT S.R. NO. 53
Acting Community Development Director Barton presented HRA Staff Report No. 53.
M/Sandahl, S/Rubenstein to approve an amendment to the Contract for Private
Development between the HRA and Woodlake Richfield Apartments, LLC (a.k.a. Lvndale Plaza
Apartments) and to authorize the HRA Chair and Executive Director to execute the document.
Motion carried 5-0.
Item #7 HRA DISCUSSION ITEMS
• RESCHEDULE MONDAY, JANUARY 20 REGULAR HRA MEETING TO
TUESDAY, JANUARY 21, 2014 DUE TO MARTIN LUTHER KING, JR.
HOLIDAY
• RESCHEDULE MONDAY, FEBRUARY 17 REGULAR HRA MEETING TO
TUESDAY, FEBRUARY 18, 2014 DUE TO PRESIDENTS' DAY HOLIDAY
M/Goettel, S/Sandahl to approve rescheduling the Mondav, Januarv 20 Reaular HRA
Meetinq to Wednesdav Januarv 22 2014 and reschedulinq the Mondav, February 17 Reqular HRA
Meetinq to Tuesdav, Februarv 18, 2014.
Motion carried 5-0.
Item #7 EXECUTIVE DIRECTOR REPORT
HRA Meeting -3- November 18,2013
Executive Director Devich reported that the Richfield Parkway is complete and suggested
that residents take a drive over there to see it.
Item #8 CLAIMS AND PAYROLL '
M/Goettel, S/Rubenstein that the followinq claims and pavrolls be approved:
U.S. BANK 11/18/13
Section 8 Checks: 124144 - 124252 $ 169,804.40
HRA Checks: 31875 - 31889 $ 75,438.33
TOTAL $ 245,242.73
Motion carried 5-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:16 p.m.
Date Approved: December 16. 2013
Suzanne M. Sandahl
HRA Chair
Nancy Gibbs . Steven L. Devich
City Clerk Executive Director
AGENDA ITEM# �J,,
�POxT# 54
STAFF REPORT
,�► r ' �' HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
DECEMBER 16, 2013
REPORT PREPARED BY: ��N BARTON, COMMUNITY
DEVELOPMENT ASSISTANT DIRECTOR
NAME,TITLE
REPORT PRESENTER: ��N BARTON, COMMUNITY
DEVELOPMENT ASSISTANT DIRECTOR
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: �
/ SlGN RE
REVIEWED BY EXECUTNE DIRECTOR: '
' ITEM FOR HRA CONSIDERATION:
Consideration of the annual Consultant Services Agreement with the Greater Metropolitan
Housin Cor oration for 2014.
I. RECOMMENDED ACTION:
By Motion: Authorize the attached Consultant Services Agreement
with the Greater Metro olitan Housin Cor oration for 2014.
II. EXECUTIVE SUMMARY
The Greater Metropolitan Housing Corporation (GMHC) specializes in a variety of
housing programs, services and financing options for homeowners. The
partnership with the Richfield Housing and Redevelopment Authority (HRA) began
in 2004 and provides GMHC's services to Richfield residents at no cost.
Services offered include, but are not limited to:
• home buyer information;
• loan services (including Minnesota Housing Finance Agency loans);
• construction consultations;
• energy assistance;
• mortgage foreclosure prevention;
• home improvement information; and
12162013 Housing Services Contract GMHC 2014xxx
� .
• assistance with rental and emergency housing issues.
The cost of their services for 2014 will be $7,000. This amount is unchanged since
2009.
III. BASIS OF RECOMMENDATION
A. BACKGROUND �
• Through November 2013 GMHC provided 152 services to 61 Richfield
residents through its Southside HousingResource Center (HRC) (see
Attachment 2). In addition, 6 Minnesota Housing Finance Agency
rehabilitation loans were processed through the HRC.
• The HRA has also successfully partnered with GMHC for the
construction of affordable houses built under the New Home Program,
the purchase and rehabilitation of properties through the
Neighborhood Stabilization Program, and facilitation of the acquisition
of HUD homes.
• In 2011, GMHC coordinated a grant proposal to Minnesota Housing
on behalf of Richfield, Brooklyn Center and Crystal for an interest-rate
write-down program. Funds were awarded and beginning in 2012;
since that time, GMHC has originated 14 home rehabilitation loans at
three percent interest to income-qualified households in Richfield.
• GMHC offers Richfield homeowners comprehensive home
improvement support and a variety of programs in a cost-effective
manner.
• GMHC offers their packages of programs and services in 16 metro
area communities. By partnering with GMHC for these services,
Richfield will remain competitive in the metro area.
B. PoLicY
• A partnership between the HRA and GMHC ensures the availability of
comprehensive rehabilitation resources and financing resources to
Richfield residents. It also serves to accomplish the two housing goals
and several housing policies identified in the 2008 Comprehensive Plan:
o Goal: Maintain and enhance Richfield's image as a community with
strong, desirable and livable neighborhoods.
• Support the rehabilitation and upgrading of the existing
housing stock.
• Encourage the creation of "move-up" housing through new
construction and home remodeling.
• Support ongoing maintenance and upkeep of residential
properties.
o Goal: Ensure sufficient diversity in the housing stock to provide for a
range of household sizes, income levels and needs.
• Encourage improvements to the housing stock to better
serve families with children and seniors.
• Promote the development, management, and maintenance of
affordable housing in the City through assistance programs;
alternative funding sources; and the creation of partnerships whose
mission is to promote low to moderate income housing.
C. CRITICAL TIMING ISSUES
• GMHC's current Agreement for services will expire on December 31,
2013.
D. Fn�arrciaL
• The cost of services for 2014 is $7,000; unchanged since 2009.
• Funds are allocated for these services in the 2014 HRA budget
E. LEGAL
• The Agreement has been reviewed by HRA legal counsel.
IV. ALTERNATNE RECOMMENDATION(S�
• Direct staff to modify the scope of services or modify the amount with GMHC.
• Do not approve the Agreement with GMHC.
V. ATTACHMENTS
• 2014 GMHC Consultant Services Agreement
• 2013 Year-end Report
VI. PRINCIl'AL PARTIES EXPECTED AT MEETING
• N/A
3�� �
CONSULTANT SERVICES AGREEMENT
THIS IS AN AGREEMENT entered into the day of , 20_, by and
between the Richfield Housing and Redevelopment Authority, ("HRA"), and GREATER
METROPOLITAN HOUSING CORPORATION, a Minnesota non-profit corporation
("Consultant").
RECITALS
A. The Consultant has a division called The Housing Resource Center ("HRC").
GMHC has agreed to provide certain Services through HRC (as defined below) in connection
with the HRA's housing program.
B. The HRA desires to hire the Consultant to render this technical, professional, and
marketing assistance in connection with housing programs in the HRA for the term as set forth in
this Agreement.
C. Consultant is willing to provide such services on the terms and conditions set
forth herein.
In consideration of the foregoing recitals and following terms, conditions and mutual
promises contained herein,the parties agree as follows:
1. Scoqe of Services. The Consultant shall provide services as follows (the
"Services"):
a. Administer the following home improvement programs for residents of the City of
Richfield (the "City"): MHFA Fix Up Fund, Community Fix Up Fund and the
MHFA Rental Rehab Program (collectively the MHFA programs):
1. Providing information to residents and property owners about the
programs, upon request;
2. Assist the HRA in marketing the programs;
3. Receipt of applications from residents;
4. Processing applications;
5. Closing loans to qualified applicants in accordance with the applicable
program;
6. Overseeing the draw process for the funds, including, as necessary,
reviewing draws, reviewing the progress of the work and collecting lien
waivers and certificates of occupancy. Consultant may, for this purpose,
rely on third-party representations and certifications.
7. Provide monthly reports about the number of loans closed and the balance
in each loan program.
fb.us3166730.04 1
3�-a
b. Assist City residents considering rehabilitation, including property visits, meet with
homeowners and potential contractors, suggest alternatives for rehabilitation to
homeowners, educate homeowners on the construction bid process, assist
homeowners to evaluate bids and work completed and construction progress.
c. Provide HRC housing information to City residents, including information on
emergency assistance, housing rehabilitation, first time homebuyers and limited
rental information;
d. Assist the HRA in developing programs to purchase and rehabilitate homes;
e. Coordinate these services out of Consultant's Minneapolis office; and
f. Have Consultant's staff visit residences as determined necessary by Consultant.
2. Term. This Agreement shall be in full force and effect from January 1, 2014 and
shall continue through December 31, 2014, unless otherwise terminated as set forth below.
3. Comnensation. For services provided under this Agreement,the HRA shall pay
to the Consultant Seven Thousand Dollars ($7,000.00) within thirty(30) days after execution of
this Agreement. Pursuant to paragraphs 1 b through 1 f.
The Consultant shall receive compensation for administering the MHFA Programs directly from
the Minnesota Housing Finance Agency and not from the HRA. Pursuant to paragraph 1 a.
4. Termination. Notwithstanding any other provision hereof to the contrary, this
Agreement may be terminated as follows:
a. The parties, by mutual written agreement, may terminate this Agreement at any
time in which case the parties shall agree to the amount of fees payable to
Consultant.
b. HRA may terminate this Agreement upon the breach by Consultant of any of its
material covenants contained herein, where such breach shall have continued for a
period of thirty (30) days following the receipt by Consultant of a written notice
from HRA, specifying the alleged breach; provided, however, if the nature of a
non-monetary breach is such that Consultant cannot reasonably cure same in the
thirty (30) day period, Consultant shall not be deemed to be in breach if it
commences to cure within the thirty (30) day period, and diligently pursues same
to completion within ninety (90) days following receipt by Consultant of such
written notice. In the event of termination by HRA hereunder, Consultant shall be
entitled to fees due to the date the notice of breach is sent by the HRA.
c. If Consultant or HRA (as applicable) (i) files a voluntary petition in bankruptcy
(ii) files a voluntary petition for reorganization under any bankruptcy law, statute
or regulation or other similar statute or regulation, (iii) is adjudicated a bankrupt,
(iv) makes an assignment for the benefit of creditors or applies for or consents to
fb.us.3166730.04 2
�A3
the appointment of a receiver or trustee as part of or in conjunction with a
"creditor plan"with respect to any substantial part of its assets, or(v) a receiver or
trustee is appointed, or an attachment or execution levied with respect to any
substantial part of its assets, and said appointment is not vacated, or the
attachment or execution not released, within sixty (60) days, then this Agreement
shall, effective as of such date, without notice or further action by either party,
immediately terminate.
d. Consultant may terminate this Agreement upon the breach by HRA of any of its
material covenants contained herein, where such breach shall have continued for a
period of thirty (30) days following the receipt by HRA of a written notice from
Consultant, specifying the alleged breach; provided, however, if the nature of a
non-monetary breach is such that HRA cannot reasonably cure same in the thirty
(30) day period, HRA shall not be deemed to be in breach if it commences to cure
within the thirty (30) day period, and diligently pursues same to completion '
within ninety (90) days following receipt by HRA of such written notice. In the
event of termination by Consultant hereunder. Consultant shall be entitled to
retain the entire fee under this Agreement. '
5. Insurance. '
a. During the term of this Agreement, the Consultant shall obtain and maintain ,
workers compensation, comprehensive general liability, and automobile liability ',
insurance. Comprehensive general liability insurance shall have an aggregate i
limit of Two Million Dollars ($2,000,000.00). !,
b. Upon request by the HRA, the Consultant shall provide a certificate or certificates I'�
of insurance relating to the insurance required. Such insurance secured by the
Contractor shall be issued by insurance companies licensed in Minnesota. The I
insurance specified may be in a policy or policies of insurance, primary or excess. I
c. Such insurance shall be in force on the date of execution of an Agreement and
shall remain continuously in force for the duration of the Agreement: I
6. Indemni�cation.
a. Notwithstanding anything to the contrary in this Agreement, the HRA, its officers,
agents, and employees shall not be liable or responsible in any manner to the
Consultant,the Consultant's successors or assigns,the Consultant's subcontractors,
or to any other person or persons for any third party claim, demand, damage, or
cause of action of any kind, nature, or character, including intentional acts, arising
out of or by reason of the performance of this Agreement by Consultant. The
Consultant, and the Consultant's successors or assigns, agree to protect, defend and
save the HRA, and its officers, agents, and employees, harmless from all third party
claims, demands, damages, and causes of action, to the extent caused by the
negligence or wrongful acts of Consultant, and the costs, disbursements, and
fb.us.3166730.04 3
��� L�
expenses of defending the same, including but not limited to, attorneys fees,
consulting services, and other technical,administrative or professional assistance.
b. Nothing in this Agreement shall constitute a waiver or limitation of any immunity or
limitation of any immunity or limitation on liability to which the HRA is entitled
under Minnesota Statutes, Chapter 466,or otherwise. ',
I
7. Assi�nment. This Agreement shall not be assigned, sublet, or transferred, in
whole or in part without the prior written approval of the HRA.
8. Conflict of Interest. The Consultant shall use best efforts to meet all
professional obligations to avoid conflicts of interest and appearances of impropriety in
representation of the HRA. In the event of a conflict, the Consultant, with the prior written
consent of the HRA, shall arrange for suitable alternative services.
9. Comnliance with Laws. The Consultant shall comply with all applicable
Federal, State, and local laws, rules, ordinances, and regulations at all times and in the
performance of the services pursuant to this Agreement.
10. Notices. Any notices permitted or required by this Agreement shall be deemed
given when personally delivered or upon deposit in the United States mail, postage fully prepaid,
certified,return receipt requested, addressed to:
Consultant: Greater Metropolitan Housing Corporation
15 South 5�' Street, Suite 710
Minneapolis, MN 55402
ATTN: Suzanne Snyder
HRA: Richfield Housing and Redevelopment Authority
6700 Portland Avenue
Richfield, MN 55423
Or such other address as either party may provide to the other by notice given in accordance with
this provision.
11. Entire Agreement. This Agreement, any attached exhibits and any addenda or
amendments signed by the parties shall constitute the entire agreement between the HRA and the
Consultant, and supersedes any other written or oral agreements between the HRA and the
Consultant. This Agreement can only be modified in writing signed by the HRA and the
Consultant.
12. Third Partv Ri�hts. The parties to this Agreement do not intend to confer on
any third party any rights under this Agreement.
13. Counternarts. This Agreement may be signed in one or more counterparts but
all of which taken together shall constitute one instrument.
fb.us.3166730.04 4
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3 _
14. Choice of Law and Venue. This Agreement shall be governed by and construed
in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims
arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all
parties to this Agreement waive any objection to the jurisdiction of these courts, whether based
on convenience or otherwise.
15. Agreement Not Exclusive. The HRA retains the right to hire other housing
program consultants,in the HRA's sole discretion.
16. Data Practices Act Compliance. Data provided to the Consultant or created by
the Consultant under this Agreement shall be administered in accordance with the Minnesota
Government Data Practices Act, Minnesota Statutes, Chapter 13, as amended.
I
[Signature Page FollowsJ I
fb.us.3166730.04 5
3
�/�
IN WIT'NESS WHEREOF, the parties hereto have executed, or caused to be executed by
their duly authorized officials, this Agreement on the respective dates indicated below.
HRA:
RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
By:
Its: Chairperson
Date: , 20_
By:
Its: Executive Director
Date: , 20_
CONSULTANT:
GREATER METROPOLITAN HOUSING CORPORATION
By:
Its: President
Date: , 20_
fb.us.3166730.04 6
The Greater Metropolitan Housing Corporation
HousingResource Center - Southside
Richfield Summary Status Report
Monthly Tracking Report - November 2013
Previous 2013 TOTAL TO
Counseling Related Activities YearTotals Jan '13 Feb '13 Mar'13 Apr'13 May '13 Jun '13 )uly'13 Aug '13 Sept'13 Oct'13 Nov'13 Dec '13 TOTAL DATE
Home Buyer Information � 10 j 0 � 0__ _� 0 i 0 � 0 ' 0 �' 0 I 0 _' 0 �, 0 '�, 0 � 0 ! 0 10
------ - -_i -- - - -
- —f--------- T-
Refinance/Satisfactions/Subordination 2 0 0 0 0 0 0 0 0 0 0 0 ' 0 0 2
_._.
_._ ----- -----_-- --- -- - -- —
Construction Consultations (5) � 235 1 0 3 5 11 12 j 6 6 5 2 � 14 0 65 300
--- ----- - �--
Energy Assistance (1)
5 0 0 0 0 ; 0 0 0 0 0 0 0 � 0 �_ 0 5
------ ----------------- --- ---
Mortgage Foreclosure Prevention _ _13_ 0 , 0 , 0 � 0 J 0 0 �_0 __ __ 0 0 2 0 0 2 15
-- - - -
Home Improvement Information (2) __ 390 � __0__ 23 6 5 I, 3 3 8 0 0 0 0 0 48 438
----- - -- --- —
Rental/Emergency Housing Issues (3) _ _ _ 14 � 0 __� 0 _ _�_ _ 0 _ 0 _ � __ 0 __ 0 0 0 0 0 0 0 � 0 14
I �-- - -'---
Other , 9 0 ! 0 0 �- 0 � 0 I 0---� 0 � 0 0 � 0 ; 0 � p I p 9
MHFA Loan Products
Loan A lications Mailed __ __ 166 j 1 ' 13 2 3 8 3 6 -- 4 I 0 , 3 I 0 43 209
Loan Applications Rec'd I 39 � 0 � 0 0 I 2 ' 2 I 1 I 2 I 1 -�3 0 _ �' 0 I 0 � 11 50
---- �I I � I
----- -----
Loans Closed 24 � 0 � 0 0 0 2 � 0 3 I 0 � ; 1 ; � 0 6 30
TOTAL SERVICES PROVIDED 865 2 36 9 10 14 15 25 11 8 5 17 0 152 1,oi7
i i ,
TOTAL CLIENTS SERVED 591 2 �3 3 4 6 s 1� � � 2 4 0 61 652
NOTE: These numbers reflect the number of CLIENTS serviced. In many instances a client will receive more than ol i II. ._ 'I I I
-- _ ' I � _ i �-- � - - - �
--- - -- -
_ - _
ne service. ! '
---- -- ---
_ � _� � , I
-- --- -- �--
, �
---- --. I-- -- ��-- -__-- �---_--- - -- ---
I _L_ , I --I I
-- - ---- -__ -- -- _- --
(1) ENERGY ASSISTANCE DENOTES REFERRALS TO SOCIAL SERVICE AGENCIES THAT PROVIDE MONETARY ASSISTANCE FOR ENERGY EXPENSES. _ �_ ___ ___
- ------ � -- —
(2) HOME IMPROVEMENTS INCLUDES REFERRALS TO MHFA,CPED, PRIVATE LENDERS OR OTHERS FOR FINANCIAL INFORMATION ON HOME �
- --- --- - ----- — - _--
(3) RENTAL/EMERGENCY HOUSING ISSUES IS A NEW CATEGORY AND WAS COMBINED WITH OTHER IN PREVIOUS YEARS. � '� __
------
(4)THIS CATEGORY INCLUDES ALL LOAN ADMINISTERED THROUGH THE HOUSING RESOURCE CENTERS INCLUDING MHFA PRODUCTS_ _�'
___.._— --- --
(5)CONSTRUCTION CONSULTATION INCLUDE HOME VISITS AND TELEPHONE CONSULTATIONS ON RELATED MATTERS
---------- — ---- --i- -- -- -
, , �
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AGENDA ITEM# 3R ,
REPORT# �S
STAFF REPORT ��
,�+►' � ` '' HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
DECEMBER 16, 2013
REPORT PREPARED BY: MYxT L�, COMMUNITY DEVELOPMENT
AccoulvTartT
NAML TITLE
REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT
D�cTOx
NAME,TITLE
DEPARTMENT DIIZECTOR REVIEW: �
SIGN URE
REVIEWED BY EXECUTIVE DIRECTOR: �
ITEM FOR HRA CONSIDERATION:
Consideration to amend a resolution approving an Interfund Loan relating to District 2010-1
(Woodlake Housin .
I. RECOMMENDED ACTION:
By Motion: Adopt an amended resolution approving an Interfund
Loan relatin to District 2010-1 Woodlake Housin .
II. EXECUTIVE SUMMARY
On August 15, 2011 the Housing and Redevelopment Authority (HRA) adopted a
resolution approving an interfund loan for a land write-down in the amount of
$85,000 and for other qualified costs of up to the amount of$200,000 for District
2010-1 (Woodlake Housing). At that time, a source of funds was not identified. The
proposed amendment to the resolution identifies the HRA Generat Fund as the
funding source.
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• Under Minnesota Statutes, Section 469.178, Subd.7, the HRA is
authorized to advance or loan money from its general fund or any
12162013 Amend Interfund Loan(Woodlake Housing)
other fund to finance expenditures. In addition, the Office of the State
Auditor (OSA) requires, as part of the annual reporting process to
identify the source of funds for all interFund loans. This was not done
in the original resolution.
B. PoLICY
• It is the HRA's policy to implement reporting requirements of the OSA.
C. CRITICAL TIMING ISSUES
• This amended resolution need to be adopted in 2013, prior to the filing
of the first OSA reports for this District in August 2014 for the year
2013.
D. FINANCIAL
• There are funds available in the HRA General Fund to finance the
interfund loan.
• The interfund loan will be repaid by available Tax Increment generated
by District 2010-1 (Woodlake Housing).
E. LEGAL
• The resolution was prepared by HRA legal counsel.
IV. ALTERNATNE RECOMMENDATION�S�
• None
V. ATTACHMENTS
• Resolution
VI. PRINCIl'AL PARTIES EXPECTED AT MEETING
• None
I
i
',
�3�- 1
HRA RESOLUTION NO.
RESOLUTION AMENDING A RESOLUTION APPROVING AN INTERFUND LOAN
RELATING TO District 2010-1 (Woodlake Housing)
WHEREAS, on August 15, 2011, the Board of Commissioners (the "Board") of the
Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (the
"Authority") adopted Resolution No. 1104 (the "Interfund Loan Resolution"), which
approved an interFund loan (the "Interfund Loan") for the purposes of reimbursing the
Authority for a land write-down in the amount of$85,000 and to pay for other costs
identified in the TIF Plan consisting of land/building acquisition, site
improvements/preparation, public parking facilities, interest and administrative costs
(collectively, the "Qualified Costs") in the amount of up to $200,000; and
WHEREAS, the Authority has determined to amend the InterFund Loan Resolution
in order to specify the particular fund from which the Interfund Loan shall be made; and
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota as follows:
1. The InterFund Loan shall be made from the General Fund, and the InterFund
Loan Resolution is hereby amended to reflect the same.
2. Except as otherwise amended herein, the Interfund Loan Resolution shall
remain in full force and effect.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 16th day of December, 2013.
Suzanne M. Sandahl, Chair
ATTEST:
Doris Rubenstein, Secretary
12162013 Amend Interfund Loan(Woodlake Housing)
AGENDA ITEM# 3C
REPORT#
STAFF REPORT '
;�►` � J'` HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
DECEMBER 16, 2013
REPORT PREPARED BY: MYxT L�, COMMUNITY DEVELOPMENT
ACCOUNTANT
NAME,TlTLG
REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT
D�cTOx
NAME,TITLE
DEPARTMENT DIIZECTOR REVIEW: �
NAT
REVIEWED BY EXECUTNE DIRECTOR: '�
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution authorizing an interFund loan for the advance of certain costs in
connection with the Cedar Avenue Tax Increment Financin District.
I. RECOMMENDED ACTION:
By Motion: Adopt a resolution authorizing an interfund loan from the
Housing and Redevelopment Authority's General Fund for advance of
certain costs up to $200,000 in connection with the Cedar Avenue Tax
Increment Financin District.
II. EXECUTIVE SUMMARY
On September 26, 2006 the City Council adopted a resolution approving the
establishment of the Cedar Avenue Tax Increment Financing District. The Housing
and Redevelopment Authority (HRA) also adopted a resolution on September 18,
2006 to establish the Cedar Avenue Tax Increment Financing District. An interFund
loan was not set up at this time. Since then, the Office of the State Auditor (OSA)
requires a resolution be adopted for advancing certain costs which can be
reimbursed once a district starts generating tax increment as well as identifying the
source of funds.t.
III. BASIS OF RECOMMENDATION
12162013 Interfund Loan-Cedar Ave
A. BACKGROUND
• The City Council adopted a resolution on September 26, 2006 and the
HRA adopted a resolution on September 18, 2006 establishing the
Cedar Avenue Tax Increment District. A resolution approving an
interFund loan was not done.
• Under Minnesota Statutes, Section 469.178, Subd. 7, the HRA is ,
authorized to advance or loan money from its general fund or any
other fund to finance expenditures.
• The OSA requires, as part of the annual reporting process, a copy of a
resolution passed by the HRA authorizing the interFund loan as well as
identifying the source of funds.
B. PoLICY
• It is the HRA's policy to implement reporting requirements of the OSA.
C. C�`rICAL T�vtnvG IssuEs
• None
D. FINANCIAL
• There are funds available in the HRA General Fund to finance the
interFund loan.
• The interfund loan will be repaid by available Tax Increment generated
by the Cedar Avenue Tax Increment Financing District.
E. LEGAL
• The resolution was reviewed by HRA legal counsel.
IV. ALTERNATNE RECONIMENDATION�S�
• None
V. ATTACHMENTS
• Resolution
VI. PRINCII'AL PARTIES EXPECTED AT MEETING
• None
��� �
RESOLUTION NO. _
RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF
CERTAIN COSTS IN CONNECTION WITH THE CEDAR AVENUE TAX
INCREMENT FINANCING DISTRICT
BE IT RESOLVED by the Board of Commissioners (the "Board") of the Richfield Housing
and Redevelopment Authority (the "HRA") of the City of Richfield, Minnesota, as follows:
WHEREAS,the City Council for the City of Richfield, Minnesota(the "City"),established the
Cedar Avenue Tax Increment Financing District(the "TIF District")within the Richfield Redevelopment
Project Area(the "Project"), and adopted a Tax Increment Financing Plan(the "TIF Plan")for the purpose of
financing certain improvements within the Project.
WHEREAS,the HRA has determined to pay for certain costs identified in the TIF Plan consisting
of land/building acquisition, site improvements/preparation,public parking facilities, interest and
administrative costs(collectively,the "Qualified Costs"),which costs may be financed on a temporary basis
from HRA funds available for such purposes.
WHEREAS, under Minnesota Statutes, Section 469.178, Subd. 7, the HRA is authorized to
advance or loan money from the HRA's general fund or any other fund from which such advances
may be legally authorized, in order to finance the Qualified Costs.
WHEREAS, the HRA intends to reimburse itself for the Qualified Costs from tax increments
derived from the TIF District in accordance with the terms of this resolution (which terms are
referred to collectively as the "Interfund Loan").
NOW THEREFORE BE IT RESOLVED, by the Board as follows:
1. The HRA hereby authorizes the advance of up to $200,000 from the General Fund or so
much thereof as may be paid as Qualified Costs. The HRA shall reimburse itself for such
advances together with interest at the rate stated below. Interest accrues on the principal
amount from the date of each advance. The maximum rate of interest permitted to be
charged is limited to the greater of the rates specified under Minnesota Statutes, Section
270C.40 or Section 549.09 as of the date the loan or advance is authorized, unless the
written agreement states that the maximum interest rate will fluctuate as the interest rates
specified under Minnesota Statutes, Section 270C.40 or Section 549.09 are from time to
time adjusted. The interest rate shall be 4% and will not fluctuate.
2. Principal and interest ("Payments") on the InterFund Loan shall be paid semi-annually on
each August 1 and February 1 (each a "Payment Date"), commencing on the first Payment
Date on which the HRA has Available Tax Increment (defined below), or on any other dates
determined by the Community Development Director, through the date of last receipt of tax
increment from the TIF District.
3. Payments on this Interfund Loan are payable solely from "Available Tax Increment," which
shall mean, on each Payment Date, tax increment available as determined by the
Community Development Director, generated in the preceding six (6) months with respect
to the property within the TIF District and remitted to the City by Hennepin County, all in
accordance with Minnesota Statutes, Sections 469.174 to 469.1799, all inclusive, as
amended. Payments on this Interfund Loan may be subordinated to any outstanding or
future bonds, notes or contracts secured in whole or in part with Available Tax Increment,
and are on parity with any other outstanding or future interfund loans secured in whole or in
part with Available Tax Increment.
�{-` ��
4. The rinci al sum and all accrued interest payable under this Interfund Loan are pre-
p p
payable in whole or in part at any time by the HRA without premium or penalty. No partial
prepayment shall affect the amount or timing of any other regular payment otherwise
required to be made under this Interfund Loan.
5. This Interfund Loan is evidence of an internal borrowing by the HRA in accordance with
Minnesota Statutes, Section 469.178, Subd. 7, and is a limited obligation payable solely
from Available Tax Increment pledged to the payment hereof under this resolution. This
Interfund Loan and the interest hereon shall not be deemed to constitute a general
obligation of the State of Minnesota or any political subdivision thereof, including, without
limitation, the HRA. Neither the State of Minnesota, nor any political subdivision thereof
shall be obligated to pay the principal of or interest on this InterFund Loan or other costs
incident hereto except out of Available Tax Increment, and neither the full faith and credit
nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged
to the payment of the principal of or interest on this Interfund Loan or other costs incident
hereto. The HRA shall have no obligation to pay any principal amount of the Interfund Loan
or accrued interest thereon, which may remain unpaid after the final Payment Date.
6. The HRA may amend the terms of this Interfund Loan at any time by resolution of the '
Board, including a determination to forgive the outstanding principal amount and accrued
interest to the extent permissible under law.
Approved by the Housing and Redevelopment Authority in and for the City of Richfield this
16th day of December 2013.
Suzanne M. Sandahl, Chair
ATTEST:
Doris Rubenstein, Secretary
AGENDA ITEM# ,�
REPORT# r�
STAFF REPORT
,�► � ' ''' HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
DECEMBER 16, 2013
REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON, HOUSING
SPECIALISTS
NAME,TITLL
REPORT PRESENTER: ��N BARTON, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: �
URE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDER.ATION:
Consideration of a Contract for Private Development between the Housing and
Redevelopment Authority and Endres Custom Homes, Inc. for the redevelopment of 7215
Lo an Avenue under the Richfield Rediscovered Pro ram.
I. RECOMMENDED ACTION:
By Motion: Approve and authorize execution of a Contract for Private
Development between the Housing and Redevelopment Authority and
Endres Custom Homes, Inc. for the redevelopment of 7215 Logan
Avenue contingent upon City Council approval of a subdivision
waiver.
II. EXECUTIVE SUMMARY
Endres Custom Homes, Inc. (the Builder) is applying for a Richfield Rediscovered
Credit to purchase the property at 7215 Logan Avenue. The existing substandard
structure would be removed, the 150-wide parcel split into two 75-foot wide lots, and
finro new homes constructed on the property. The new homes will be approximately
2,000 square feet with end values around $350,000.
III. BASIS OF RECOMMENDATION
12162013 RR Credit 7215 Logan.docx
A. BACKGROUND
• Endres Custom Homes, Inc. has submitted an application for a
$50,000 Credit to redevelop the property at 7215 Logan Avenue. The ,
property is 150 feet wide and is currently developed with one �,
substandard house. The Builder proposes to demolish the existing
structure and split the lot into two, seventy-five foot wide lots. Two new
homes would then be built on the lots.
• Because there is one substandard house located on the property, the
Builder is eligible for one Credit. The Contract, therefore, requires
construction of one house with an estimated end-value of$350,000.
• The proposed 2,015 square foot house will have four bedrooms, three
bathrooms and a three-car garage.
• A second 2,023 square foot house will be built on the second lot with
an end-value of$349,900, three bedrooms, three baths and a three-
car garage.
• The existing structure, built in 1937, has been inspected by the
Housing and Redevelopment Authority (HRA) inspector and qualifies
as substandard, per the program guidelines.
• At the November 26th City Council meeting, the applicant requested to
subdivide the property into three 50-foot lots for the development of
three new single-family homes. Numerous residents opposed the
proposal, and the City Council denied the request.
• Prospective Richfield Rediscovered participants bear a significant cost
in redeveloping developed lots. The $50,000 redevelopment subsidy
addresses the financing gap and provides an attractive incentive to
replace a substandard housing structure with a new home that meets
the needs and desires of today's households.
• The Builder has end buyers pre-approved for the lots.
B. POLICY
• The proposed project meets the objectives of the Richfield
Rediscovered Program:
o Removes substandard, functionally obsolete housing and
eliminates its blighting influence.
o Provides new, higher valued housing.
o Alleviates shortage of housing choice for families.
o Facilitates the HRA's "Market Rate Initiatives" by providing two
owner-occupied houses designed for families.
• The project meets the Housing Design and Site Development Criteria,
as defined in the Richfield Rediscovered Guidelines.
C. CRITICAL TIMING ISSUES
• The Builder has submitted an application for a subdivision waiver to
split the parcel into finro lots. The application will go before the City
Council on January 14, 2014. The proposed 75-foot wide lots meet the
City's subdivision requirements.
• The Contract requires the Builder to close on the property by March 1,
2014, and to complete construction by July 1, 2014.
D. Fn�aNC1AL
• Under the terms of the Contract, the $50,000 will be distributed in one ��
installment, due and payable upon completion of construction.
• The 2014 Richfield Rediscovered budget allows for one credit
development.
• Although the lot will be split into two lots, one $50,000 credit will be
provided.
E. LEGAL
• The HRA Attorney has reviewed the terms of the Contract for Private
Redevelopment.
• No public notification is required on this item; however, due to
neighborhood interest shown in the proposed changes, notification of
the meeting was sent to property owners within 350 feet of the subject
property, as a courtesy.
IV. ALTERNATIVE RECOMMENDATION(S�
• Do not execute the Contract for Private Development.
• Amend the Contract for Private Development and direct staff to work with the
Builder to revise the proposal.
V. ATTACHMENTS
• Photo of 7215 Logan Avenue
• Elevations of proposed home
• Site plan of proposed home
• Contract for Private Development
• Elevations of home to be built on south portion of lot
VI. PRINCII'AL PARTIES EXPECTED AT MEETING
• Dustin Endres, Endres Custom Homes, Inc.
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CONTRACT FOR PRIVATE DEVELOI'MENT
Between
I30U5ING AND itEDEVELOPMENT AiJ'T�IIORIT'�'
IN AND FOR'THE CITY OF RICHFIEI�D
and
E1�tDT�ES CUSTOM gIOIVIES,INC.
Related to Property Located at
7215 Lt)GAN AVENUE SOIJTH
This Instr�ament Da�afted by:
Housfng and Redevelopment Atatharity
in and for the City of Richtield
6700 Portl�nd Avenue South
ltichfield, MN 55423
612-861-9760
410517v2 JAE RC 125-65
�/�
�+�1\8��8 1'VE\1 1YLv�M Y-!�e.a t a'rY1�1 1�1�1\R
'g'H�S AG��1@'iIENT', 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 Endres Custom Homes, Inc.
(Buyer).
WI�'I�IESSETHc
�'VI�EItEAS, the City of Richfield (City) and the HRA have previously created and
established a Redevelo�ment Project (Project) pursuant to the authority granted in Minnesota
Statutes, Sections 469.001 through 469.047 (the Act); and
9'�'I�iEI3.�A�, pursuant to the Act, the City and the HRA have previously adopted a
redevelopment plan (Redevelopment Plan) to finance all or a portion of the public development
costs of the Project; and
�fi'HEIB�AS, in order to achieve the objectives of the Redevelopment Plan and
particularly to make specified land in the Pxoject 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
�3'HE�AS, the Buyer has proposed a development as hereinafter defined within the
Project which the HR.A has determined will promote and carry out the objectives for which the
Project has been undertaken, will assist in carrying out the obligations of the Redevelopment
Plan, will be in the vital best interests of the City and the health, safety and welfare of its
residents and is in accord with the public purposes and provisions of the applicable state and
local laws and requirements under which development in the Project has been undertaken and is
being assisted.
NOW, TIIEREEOI2.E, in consideration of the mutual covenants and obligation of the
HRA and the Buyer, each party does hereby represent, covenant and agree with the other as
follows:
A�8'I'ICLE I.
DEFII�iITIOIvTS, EXHI�I'I'S. ItiJI,ES OF Il�t'I'EItPItETATIOI�
Sectflon 1.1. I�efnitions. In this Agreement, the following terms have the meaning
given below unless the context clearly requires otherwise:
�uve�-. Endres Custom Homes, Inc.
C�. The City of Richfield, Minnesota.
Clos�n�. The date on which Buyer closes on the Purchase of the Property.
1
4105llv2 JAE RC125-65
�,�D
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.
Develonment. 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 tertn in Section 8.1.
Guidelines. The Rich�eld Rediscovered Program Guidelines for the Redevelopment
Credit Progranl, revised July 25, 2011 and attached as Exhibit A to this Agreement.
HRA. The Housing and Redevelopment Authority in and for the City of Rich�eld,
Minnesota.
Imnrovements. Each and all of the structures and site iniprovements constructed on the
Property by the Buyer, as speci�ed in the Construction Plans approved by the HRA.
Minimum Market Value. $350,000, which is the minimum market value for the
Property and Improvements as confirmed by the Henne�in County Assessor.
Pronerty. The real property legally described as:
Lot 2,Block 1, Dukatz Wittenborg Additian, according to the recorded plat thereof, Hennepin
County,Minnesota
having a street address of: 7215 Logan Avenue South
Redevelopment Project or Proiect. The Redevelopment Project established by the
HRA pursuant to Minnesota Statutes Sections 469.001 through 469.047 and described in the
Redevelopment Plan.
Redevelopment Plan. The plans for implementation of the Redevelopment Project
adopted by the HRA pursuant to Minnesota Statutes Sections 469.001 through 469.047.
Unavoidable Delavs. Delays which are the direct result of strikes, labor troubles, fire or
other casualty to the Improvements, litigation commenced by third parties which results in delays
or acts of any federal, state or local government, except those contemplated by this Agreement,
which are beyond the control of the Buyer.
Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a
part of this Agreement:
A. Program Guidelines
2
410517v21AE RC125-65
�,i ►
B. Certi�cate of Completion
Section 1.3 Rules of Internretation.
(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 Bv the Su �}_er. The Buyer makes the following representations and
undertakings:
(a) The Buyer has the legal authority and power to enter into this Agreement and has
duly authorized the execution, delivery and performance of this Agreement;
(b) The Buyer has the necessary equity capital or will obtain commitments for
financing necessary for construction of the Improvements;
(c) The Buyer will construct the Improvements in accordance with the terms of this
Agreement and all local, state and federal laws and regulations;
(d) The Buyer will obtain, in a timely manner, all required permits, licenses and
approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws
and reguiations which must be obtained or met before the Improvements may be constructed;and
(e) The plans for the Improvements have been prepared by a quali�ed draftsperson or
architect.
(� The Buyer intends to reside at the Property following completion of construction
of the Improvernents and is not acquiring the Property for the purpose of resale or speculation.
(g) The Buyer has read and understands the Guidelines and agrees to be bound by
them.
3
410517v2 JAE RC 125-65
��I�
Sechon 2.2 By the�II�A. The HRA makes the following representations as the basis for
the undertaking on its part herein contained:
(a) The HRA is authorized by law to enter into this Agreement and to carry out its
obligations hereunder; and
(b) The HRA will, in a timely manner, subject to all notification requirements,review
and act upon all submittals and applications of the Buyer and will cooperate with the efforts of '',
Buyer to secure the granting of any permit, license, or other approval required to allow the I
construction of the Improvements. �
ARTICI.E III.
r�CQU�SI7'I�1�1 OF'PRO�'�+l�T'Y; Cf)I`TVEY�iNC�+ TO�UX�+R
Section 3.1 I'urchase of P�ouertv bv Buver. The Buyer has, or will utilize its best
efforts to enter into a binding agreement to purchase the Property. If no binding purchase
agreement is entered into within 30 days from the date of this Agreement, either the HRA or the
Buyer may declare this Agreement null and void, and the parties will thereby be released from
any further obligation hereunder.
Section 3.2 Closin . Closing on the Property must take place on or before March 1,
2014, or such other date as may be agreed to by the Buyer and the HRA in writing.
AIt'I'ICLE IV.
C�N�TRi1C'I'I(JN O�'I1VIP�tOVEIVIEl�TTS
��etion 4.1. Construe�mn of Im�aroeements. The Buyer shall submit to the HRA the
Construction Plans for approval by the HRA staff. The Buyer shall cause the Improvements to
be constructed on the Property in accordance with the Guidelines and the Construction Plans,
shall cause the Improvements to meet or exceed the Minimum Market Value, and shall maintain,
preserve and keep the Improvements in good repair and condition.
�ection 4.2. �uild'ang I'lans. No building permit will be issued by the City unless the
building plans are in conformity with the Guidelines contained in Exhibit A, the Consttuction
Plans, the required Minimum Market Value, other requirements contained in this Agreement, and
all local, state and federal regulations. The Buyer shall provide the HRA with a set of building
plans to be used in connection with any application for a building permit. The HRA shall, within
25 days of receipt of the building plans submitted in application for a building permit, review
such building plans to determine whether the foregoing requirements have been met. If the HRA
determines such building plans to be deficient, it shall notify the Buyer in writing stating the
deficiencies and the steps necessary for correctiion. Issuance of the building permit by the City
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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 August l, 2014. All construction shall be in
conformity with the approved Construction Plans and the Guidelines. Periodically during
construction the Buyer shall make reports in such detail as may reasonably be requested by the
HRA concerning the actual progress of construction. If at any time prior to completion of '
construction th�HRA has cause to believe that the Buyer will be unable to complete construction �',
of the Improvements in the time permitted by this Section 4.3, it may notify the Buyer and 'I
demand assurances from the Buyer regarding the Buyer's construction schedule. If such
assurances are not forthcoming or are deemed by the HRA at its sole discretion to be inadequate,
the HRA may declare an Event of Default and may avail itself of any of the remedies specified in
Section 8.2 of this Agreement.
Section 4.4 Certi�cate of Comuletion. Promptly after notification by the Buyer of
completion of construction of the Improverrients, the HRA shall inspect the construction to
determine whether the Improvements have been cornpleted in accordance with the Construction
Plans and the terms of this Agreement, including the date of the completian thereof. In the event
that the HRA is satisfied with the construction, the HRA shall furnish the Buyer with a
Certificate of Completion in the form attached hereto as Exhibit B. Such certification by the
HRA shall be a conclusive determination of satisfaction and termination of the agreements and
covenants in this Agreement with respect to the obligation of the Buyer to construct the
Improvements.
If the HRA shall refuse or fail to provide certi�cation in accordance with the provisions
of this Section 4.4, the HRA shall within 15 days of such notification provide the Buyer with a
written statement, indicating in adequate detail in what respects the Buyer has failed to complete
the Improvements in accordance with the provisions of this Agreement necessary, in the opinion
of the HRA, for tlie F3uyer to take or perform in order to obtain such certification.
Section 4.5 Failure to Construct. In the event that construction of the Improvements is
not completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed
to have occurred, and the HRA may proceed with its remedies under Section 8.2.
ARTICLE V.
REDEVELOPMENT ASSISTANCE
Section 5.1 Redevelopment Credit. As consideration for the Buyer's covenant to
construct the Itnprovements, and subject to all of the conditions of this Agreement, the HRA
agrees to provide the Buyer with a Redevelopment Credit in the amount of$50,000. If the Buyer
is in compliance with its obligations under this Agreement, the Redeveloprnent Credit will be
paid to the Buyer in one installment on the date of the issuance of a Certificate of Completion
evidencing that the Improvements have been completed, including the landscaping.
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ARTICLE VI.
FINANCING
Section 6.1 �nancin�. Within 20 days of the date of execution of this Agreement, the
Buyer shall submit to the HRA evidence of financing for the Improvements in compliance with
the provisions of Section 2.1(b) of this Agreement. If the HRA finds that the financing is
adeguate in amount to provide for the construction of the Improvements, the HRA shall notify
the Buyer of its approval.
If the HRA rejects the evidence of financing as inadequate, the Buyer shall have 30 days
or such additional period of time as the Buyer may reasonably require from the date of such
notification to submit evidence of financing satisfactory to the HRA. If the Buyer fails to submit
such evidence or fails to use due diligence in pursuing financin�, the HRA may terminate this
Agreement and both parties shall be released from any further obligation or liability hereunder,
except for the HRA's remedies pursuant to Section 4.5 of this Agreement.
Section 6.2 Copv of Notice of Default to Lender. Whenever the HRA shall deliver any
notice or demand to the Buyer with respect to any Event of Default by the Buyer in its
obligations or covenants under this Agreement, the HRA shall at the same time forward a copy of
such notice or demand to each holder of any mortgage at the last address of such holdex shown in
the records of the HRA.
ARTICLE VII.
PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER
Section 7.1 Representation as to Redevelonment. The Buyer represents and agrees
that its undertakings pursuant to the Agreement, are for the purpose of development of the ,
Property and not for speculation in land holding. The Buyer further recognizes that, in view of '',
the importance of the Development to the general welfare of Richfield and the substantial '�,
financing and other public aids that have been made available by the HRA for the purpose of I
making the Development possible, the qualification and identity of the Buyer are of particular �I
concern to the HRA. The Buyer further recognizes that it is because of such qualifications and �
identity that the HRA is entering into this Agreement, and, in so doing, is furtlier willing to rely
on the representations and undertakings of the Buyer for the faithful performance of all ��
undertakings and covenants agreed by the Buyer to be performed. ',
Sectfon 7.2 Prohibition A�ainst Transfer of Prouertv and Assi�nment of
A�reement. For the reasons set out in Section �.1 of this Agreement, the Buyer represents and
agrees that prior to the issuance of the Certificate of Completion by the�-IRA:
I
(a) Except only by way of security for, and only for the purpose of obtaining !,
financing necessary to enable the Buyer or any successor in interest to the Property, or any part ',
thereof, to perform its obligations with respect to the Development under this Agreement, and
any other purpose authorized by this Agreement, the Buyer, except as so authorized, has not
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made or created, and that it will not make or create, or suffer to be made or created, any total or
partial sale, assignment, conveyance, or any t�rust 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..
AR'I'ICLE VIII.
EYEl�1TS O�1DEFAIJI.'I'
Section �.l Ev�nts of 9)efault 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 af the following events:
(a) Failure by the Buyer to pay when due the payments required to be paid or secured
under any provision of this Agreement;
(b) Failure by the Buyer to observe and substantially perform any covenant,
condition, obligation or agreement on its part to be observed or perfortned hereunder, including
the time for such performance;
(c) If the Buyer shall adrnit 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 itseif or of the whole or any
substantial part of the Property;
(d) If the Buyer, on a petition in bankruptcy filed against it, be adjudicated as
bankrupt, or a court o£competent jurisdiction shall enter an order or decree appointing, without
the consen� of the Buyer, a receiver of the Buyer or of the whole or substantially all of its
property, or approve a petition filed against the Buyer seeking reorganization or arrangement of
the Buyer under the federal bankruptcy laws, and such adjudication, order or decree shall not be
vacated or set aside or stayed within 60 days from the date of entry thereof; or
(e) If the Buyer is in default under any mortgage recorded against the Property and
has not entered into a work-out agreement with the holder of the mortgage.
Se�tion 8.2 �temedies on Default. Whenever any Event of Default occurs, the HRA
may, in addition to any other remedies ar rights given the HRA under this Agreement, take any
one or more of the following actions following written notice by the HRA to the Buyer as
provided in Section 9.3 of this Agreement:
(a) Suspend its performance under this Agreement until it receives assurances from the
Buyer, deemed reasonably adequate by the HRA, that the Buyer will cure its default and continue
its performance under this Agreement;
(b) Cancel or rescind this Agreement;
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(c) Withhold the Certificate of Completion; or
(d) Take whatever action at law or in equity may appear necessary or desirable to the
HRA to enforce performance and abservance of any obligation, agreement, or covenant of the
Buyer under this Agreement; provided, however, that any exercise by the HRA of its rights or
remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid
or limit in any way (a) the lien of any mortgage and (b} any rights or interest provided in this
Agreement for the protection of the holders of a nlortgage; and provided further that should any
mortgagee succeed by foreclosure of the mortgage or deed in lieu thereof to the Buyer's interest
in the Property, it shall, notwithstanding the foregoing, be obligated to perform the obligations of
the Buyer under this Agreement to the extent that the same have not therefore been performed by
the Buyer.
Section 8.3 No Remedv Exclusive. No remedy herein conferred upon or reserved to the
HRA is intended to be exclusive of any other available remedy or remedies, but each and every
such reniedy 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 Buyer
to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such
notice as may be required in this Article VIII.
Section 8.4 No Additional Waiver Implied bv One Waiver. In the event of the
occurrence of any Event of Default by either party, which Event of Default is thereafter waived
by the other party, such waiver shall be limited to the particular Event of Default so waived and
shall not be deerned to waive any other concurrent,previous or subsequent Event of Default.
ARTICLE IX.
ADDITIONAL PROVISIONS
Section 9.1 Conflict of Interests; Renresentatives Not Individuallv Liable. No HRA II'
officer who is authorized to take part in any manner in making this Agreement in his or her
official capacity shall voluntarily have a personal financial interest in this Agreement or benefit
financially there from. No member, official, or employee of the HRA shall be personally liable
to the Buyer, or any successor in interest, for any Event of Default by the HRA or for any amount
which may become due to the Buyer or successor or on any obligations under the terms of this
Agreement.
Section 9.2 Non-Discrimination. The provisions of Minnesota Statutes Section 181.59,
which relate to civil rights and non-discrimination, and any affirmative action program of the
City shall be considered a part of this Agreement and binding on the Buyer as though fully set
forth herein.
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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:
R.ichfield HRA
Attn: Housing Specialist
6700 Portland Avenue 5outh
Richfield, MN 55423
(b) As to the Buyer:
Endres Custom Homes, Inc.
15690 Duck Pond Way
Apple Vally, MN 55124
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.
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ilei WI'�NESS VV]E�EREOF, the parties have caused this Agreement to be duly executed
as of the day and year first above written.
THE �-I�iJSIN� r�l`1ID �tEi)EVELOPMEN'�
AUTHO�2ITY IN ANI) FOIa THE CITY OF
RICHFIELI),1VIII�11`1ESOTA
By
Its Chairperson
BY
Its Executive Director
STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
2013, by , the Chairperson of the
Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA), a
public body corporate and politic under the laws of Minnesota, on behalf of the HRA.
Notary Public
STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
, 2013, by Steven L. Devich, the Executive Director of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota (HRA), a public body
corporate and politic under the laws of Minnesota, on behalf of the HRA.
Notary Public
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BUYER
�--- _- _ �-�=---___-----------
;
�
-�' (�'S C,vS��� r� E-.S
STATE OF MINNESOTA
)
�„ r � j SS
COUNTY OF �.t�C�
The f re oing instrument was acknowledged before me this_�_day of
, 2Q13,by , [insert marital stat�is].
Notary blic
�n�
JANINE C. HANSON
� t�otary Pubtic-Minnesota
^r9y Commission Expires Jan 31,2015
�'��v�/vvvwv`/v��N'
i
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