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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 � � 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- -- -- - , , � �� � i �� 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. � �i 7;� �15 ��,«�;�� n �vc�n l�e : { � �.������4`����- ` ,� .:,1€ � , `�' �• � � ,f�. i��( ,�s. `1*.=. .1 '.' .. . 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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 4 410517v2 JAE RC125-65 ��i 3 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. 5 410517v2 JAE RC125-65 � -'� 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 6 410517v2 JAE RC125-65 �-�� 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; 7 470517v2 JAE RC125-65 � � � � (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. $ 410517v2 JAE RC125-65 � /�� 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. 9 410517v2 JAE RC125-65 � -i� 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 10 410517v2 JAE RC125-65 ���� 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. 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SECOND LEVEL FLOOR - -- � � __ _ G � 4 SHINGL S� 4:12 �_ _ _-- - ��_MAW LEVEL CLG � -- � _ - - - _ _ �� � : _. _ ___. � _ _ _ __ _ , _ : � � � � � � � � ���� � - ��� �MAIN LEVEL FLOOR : - _ _ __ - - ._ .. __ . - - - � _ _ __ -__ _. _ _ _ _ _ _ _ _ - : � � � � � � � � ���� ���� BASEMENT CLG �R�„ - � -�- �BSMT LEVEL FLOOR B_OTTOM OF FTG - �-� / w ��