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012214CompleteAgenda CITY OF RICHFIELD, MINNESOTA WEDNESDAY, JANUARY 22, 2014 RICHFIELD MUNICIPAL CENTER 6700 PORTLAND AVENUE *****,��,�******,�***�,�*,�****�*,�*******,�******,�*******,�*******�**�************�******�,�****��,�,�,�*****,�**�* SPECIAL HOUSING AND REDEVELOPMENT AUTHORITY WORKSESSION COUNCIL CHAMBERS 6:25 P.M. AGENDA Call to order Roll call (Worksession discussion times are approximate) 6:25 - 6:55 p.m. 1. Discussion of the process for retrieving electronic agenda packets Notes: Adjournment ,�*****,�*****,�******�******�*,�*****�*****�*,�****�,�,��***,��******��*****,�*,�*****,�******,�*,�****,�**********,�� REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING � COUNCIL CHAMBERS 7:00 P.M. AGENDA Call to order Roll call 1. Consideration of the election of officers for the Richfield HRA for 2014 Staff Report No. 1 Notes: 2. Approval of the minutes of the Regular HRA Meeting of December 16, 2013 3. HRA approval of the agenda 4. Consent Calendar contains several separate items which are acted upon by the HRA in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further HRA action on these items is necessary. However, any HRA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for HRA discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of the approval of the resolutions designating the official depositories for the HRA for 2014, including the approval of collateral S.R. No. 2 B. Consideration of the approval of designating the Community Development Director as the Acting Executive Director of the HRA for 2014 in the event the Executive Director is absent from the City S.R. No. 3 C. Consideration of the approval of a resolution accepting a 2014 Metro Clean Energy Resource Teams Seed Grant from the Great Plains Institute for Sustainable Development, Inc. to develop a Latino Outreach plan for the Home Energy Squad Enhanced Program S.R. No. 4 D. Consideration of the approval of a Professional Services Agreement with the � Neighborhood Development Alliance to develop a Latino Outreach Plan for the Home Energy Squad Enhanced Program S.R. No. 5 Notes: 5. Public hearing re�arding the resolutions authorizin� the sale of four lots (6220-15tn Avenue; 6336-15 Avenue; and 6416 and 6420-16 h Avenue) to Twin Cities Habitat for Humanity, Inc. for the development of four single-family homes through the New Home Program Staff Report No. 6 Notes: 6. Consideration of a proposal made by the owner of 6700 Elliot Avenue for a settlement of a HRA Deferred Loan Staff Report No. 7 Notes: 7. Consideration of a resolution designating buildings (associated with the former City Garage facilities and former Gleason's Mortuary) as structurally substandard within the Richfield Redevelopment Project Area and authorizing their demolition Staff Report No. 8 Notes: 8. Consideration of a resolution authorizing an Interfund Loan for the advance of certain costs in connection with the proposed Tax Increment Financing District 2014-1 Staff Report No. 9 Notes: 9. HRA discussion items Notes: 10.Executive Director Report Notes: 11.Claims and Payroll Adjournment Auxiliary aids for individuals with disabilities are available upon request. Requests must be made at least 96 hours in advance to the City Clerk at 612-861-9738. AGENDA IT'EM#: 1 REPORT#; 1 STAFF REPORT � � '' HOUSING AND REDEVELOPMENT AUTHORITY MEETING �TANUARY 22, 2014 REPORT PREPARED BY: CHERYL KRUMHOLZ, EXECUTNE COORDINATOR NAME,TlTLE REPORT PRESENTER: STEVEN L. DEVICH, EXECUTNE DIRECTOR NA,uc,TirLc DEPARTMENT DIRECTOR REVIEW: � N/ _ ' ,,_,. S�c TunE' REVIEWED BY EXECUTIVE DIRECTOR: � � i ITEM FOR HRA CONSIDERATION: Consideration of the election of officers for the Richfield HRA for 2014. I. RECOMMENDED ACTION: B Motion: Elect officers for the Richfield HRA for 2014. II. EXECUTIVE SUMMARY The bylaws of the Richfield HRA provide that the HRA hold an annual meeting in January. The bylaws further provide that the Chair, Vice Chair and Secretary of the HRA be elected at this meeting. Officers for 2013 were: Sue Sandahl, Chair Steven J. Quam, Vice Chair Doris Rubenstein, Secretary III. BASIS OF RECOMMENDATION A. BACKGROUND 01220fficersxxx • The HRA bylaws require that an election of officers be held at the annual meeting in January. B. PoLICY • The HRA bylaws provide that the HRA hold an annual meeting in January. • The HRA bylaws provide that the Chair, Vice Chair and Secretary be elected at the annual meeting in January. C. CRITICAL TIMING ISSUES • The bylaws of the HRA require that an election of officers for the HRA be held at the annual meeting in January. D. FnvarrclaL • N/A E. LEGAL • The bylaws of the HRA require that an election of officers for the HRA be held at the annual meeting in January. IV. ALTERNATIVE RECOMMENDATION(S� • The HRA could decide to not hold an election. However, this would be contrary to the HRA bylaws. V. ATTACHMENTS • None. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. HOUSING AND REDEVELOPMENT ` � � AUTHORITY MEETING MINUTES '� �► � Richfield, Minnesota Regular Meeting December 16, 2013 CALL TO ORDER The meeting was called to order by Chair Sandahl at 7:00 p.m. ROLL CALL HRA Members Sue Sandahl, HRA Chair; Doris Rubenstein; David Gepner; Mary Present: Supple and Debbie Goettel. Staff Present: John Stark, Acting Executive Director; Karen Barton, Assistant Community Development Director; and Nancy Gibbs, City Cierk. Item #1 APPROVAL OF MINUTES OF THE REGULAR HRA MEETING OF NOVEMBER 18, 2013. M/Rubenstein, S/Gepner to approve the minutes. Motion carried 5-0. Item #2 HRA APPROVAL OF AGENDA M/Goettel, S/Supple to approve the aaenda. Motion carried 5-0. Item #3 CONSENT CALENDAR A. Consideration of the approval of the annual Consultant Services Agreement with the Greater Metropolitan Housing Cooperation for 2014 S.R. No. 54 B. Consideration of the approval of an amended resolution approving an Interfund Loan relating to District 2010-1 (Wood�ake Housing) S.R. 55 HRA RESOLUTION NO. 1168 RESOLUTION AMENDING A RESOLUTION APPROVING AN INTERFUND LOAN RELATING TO DISTRICT 2010-1 (WOODLAKE HOUSING) HRA Meeting -2- , This resolution appears as HRA Resolution No.1168. C. Consideration of the approval of a resolution authorizing an Interfund Loan from the HRA's Generai Fund for advance of certain costs up to $200,000. In connection with the Cedar Avenue Tax Increment Financing District S.R. 56 HRA RESOLUTION NO. 1169 RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH THE CEDAR AVENUE TAX INCREMENT FINANCING DISTRICT This resolution appears as HRA Resolution No. 1169. M/Goettel, S/Gepner to approve the Consent Calendar. Motion carried 5-0. Item #4 CONSIDERATION OF THE EXECTION OF A CONTACT 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 S.R. NO. 57 Assistant Community Development Director Barton presented HRA Staff Report No. 57. M/Sandahl, S/Goettel Motion carried 5-0. M/Sandahl, S/Goettel approve a contract for private development between the HRA and Endes Custom Homes Inc for the redevelopment of 7215 Loqan Avenue contingent upon Citv Council approval of a subdivision waiver. Motion carried 5-0. Item #5 HRA DISCUSSION ITEMS HRA Commissioner Goettel inquired as to the status of the Housing Task Force study. Acting Executive Director Stark responded that the Housing Task Force will continue to study the housing needs of the City in 2014. Staff has also hired Maxwell Research to help with the study. Item #6 EXECUTIVE DIRECTOR REPORT Acting Executive Director Stark informed the HRA of the launching of the electronic agenda packets starting in January. Training is scheduled at a Special City Council, HRA, and Planning Commission meeting on January 14, 2014. HRA Meeting -3- Item #7 CLAIMS AND PAYROLL M/Goettel, S/Rubenstein that the followinq ciaims and pavrolls be approved: U.S. BANK 12/16/13 Section 8 Checks: 124253 - 124371 $ 174,311.18 HRA Checks: 31891 - 31908 $ 23,767.29 TOTAL $ 198,078.47 Motion carried 5-0. ADJOURNMENT The meeting was adjourned by unanimous consent at 7:19 p.m. Date Approved: Januarv 22, 2014 Suzanne M. Sandahl HRA Chair Nancy Gibbs John Stark City Clerk Acting Executive Director AGENDA ITEM#: 4A REPORT#: 2 i STAFF REPORT �► � ' ' HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 22, 2014 REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER NAME,TITLE REPORT PRESENTER: CHRIS REGIS, FINANCE MANAGER NAME,TlTLE DEPARTMENT DIRECTOR REVIEW: � N/A �j � � SIGNA'U :_�,._ % � REVIEWED BY EXECUTIVE DIRECTOR' � � � ITEM FOR HRA CONSIDERATION: Consideration of resolutions designating official depositories for the Housing and Redevelopment Authority for 2014, including the approval of collateral. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolutions designating official depositories, with the understanding that the HRA could not invest in any of the depositories beyond the level of insurance coverage of the pledged collateral. II. EXECUTIVE SUMMARY In compliance with Minnesota statutes, the Housing and Redevelopment Authority of Richfield (HRA) must designate on an annual basis those financial institutions it does business with. The following resolutions for the HRA Board's consideration, designate U.S Bank/4M Fund as a depository of HRA funds, and certain savings and loan associations, banks, credit unions and certain financial institutions as depositories for the investment of HRA funds. III. BASIS OF RECOMMENDATION A. BACKGROUND • N/A B. POLICY • In accordance with Minnesota Statutes Section 118A.01 - 118A.06, the HRA of Richfield must designate financial institutions annually. The institutions must pledge the collateral over and above the amount of federal insurance, as public depositories. • U.S. Bank acts as the banking institution in the HRA's banking arrangement with the 4M Fund. Monies received, checks written, by the HRA, flow through U.S. Bank, however, at the end of each business day, any proceeds remaining in HRA U.S. Bank accounts are swept to the 4M Fund to be invested. Therefore, at the end of the business day the HRA accounts are zero, which means the collateral requirements of Minnesota Statutes Section 118A.03 are not required. Accordingly, U.S. Bank has met all other statutory requirements and should be considered as a depository for the HRA's vendor accounts and all savings deposits. • The HRA must also designate annually, certain savings and loan associations, banks, and credit unions as official depositories for deposit and investment of certain HRA funds. With approval of these official depositories, the HRA will be able to invest funds in these institutions, not exceeding the federal insurance of$250,000. • Finally, a designation must be made for certain financial institutions as depositories for the investment of HRA funds for 2014. These institutions, such as investment brokerage firms, offer government securities in the manner required by law. These financial institutions include U.S. Bank, � RBC Dain Rauscher, Wells Fargo Institutional Brokerage & Sales, Raymond James &Associates, Northland Securities and the 4M Fund. C. CRITICAL TIMING ISSUES • N/A D. F�arrclaL • N/A E. LEGAL • The HRA is required by Minnesota Statute 118A.01 - 118A.06, to designate as a depository of funds, insured banks or thrift institutions. Any collateral so deposited is accompanied by an assignment pledged to the HRA in the amount specified in the attached resolutions. IV. ALTERNATIVE RECOMMENDATION(S� • The HRA could solicit other financial institutions for official depositories, but past relationships with the depositories recommended have proven satisfactory for the City. V. ATTACHMENTS • Resolution designating US Bank a depository of funds of the HRA of Richfield for the year 2014. • Resolution designating certain savings and loan associations, banks, and credit unions as depositories for the investment of HRA funds in 2014. • Resolution designating certain financial institutions as depositories for the investment of HRA of Richfield funds in 2014. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None �j�-/ RESOLUTION NO. RESOLUTION DESIGNATING U.S. BANK A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD FOR THE YEAR 2014 BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as I� follows: That, in accordance with Minnesota Statutes, Section 118A.01- 118A.06, U.S. Bank be, and hereby is designated a depository of the funds of the Housing and Redevelopment Authority of Richfield, subject to modification and revocation at any time by said Housing and Redevelopment Authority, and subject to the following terms and conditions: The said depository shall not be required to give bonds or other securities for such deposits provided that the total sum thereof shall not at any time exceed in any depository the sums for which its deposits are insured under the Acts of Congress of the United States relating to insurance of bank deposits; but that in case such deposits in any such depository shall at any time exceed such insured sum, said depository shall immediately furnish bonds or other security for such excess according to law, approved by the Housing and Redevelopment Authority of Richfield. That said depository shall pay on demand all deposits therein; and shall pay all time deposits, at or after the end of the period for which the same shall be deposited, on demand. - BE IT FURTHER RESOLVED, that there shall be maintained a general account in which shall be deposited all monies. The following officers or their facsimile signatures shall sign checks on this account; HRA CHAIR (TBD] STEVEN L. DEVICH, EXECUTIVE DIRECTOR BE IT FURTHER RESOLVED, that all funds remaining in the account at the end of each business day will be transferred from U.S. Bank to the 4M Fund where funds deposited are invested and insured. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 22nd day of January, 2014. Chair Al-f EST: Secretary �� RESOLUTION NO. RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS, BANKS AND CREDIT UNIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2014 BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota: WHEREAS, pursuant to Minnesota Statutes, Sections 118A.01 — 118A.06, municipal funds may be deposited in any Savings and Loan Association, Bank or Credit Union which has its deposits insured by the Federal Deposit Insurance Corporation (FDIC), or National Credit Union Administration (NCUA); and WHEREAS, the amount of said deposits may not exceed the FDIC/NCUA insurance covering such deposits which insurance amount is presently $250,000; and WHEREAS, the deposit of Housing and Redevelopment Authority funds in Savings and Loan Associations and Banks would provide greater flexibility in the Housing and Redevelopment Authority's investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota, as follows: 1. It is hereby found and determined that it is in the best interest of the proper management of Housing and Redevelopment Authority funds that certain Savings and Loan Association and Banks be designated as additional depositories for Housing and Redevelopment Authority funds for 2014. 2. It is further found and determined that the purpose of such depository designation is to facilitate the proper and advantageous investments of Housing and Redevelopment Authority funds and that such designation is not exclusive nor does it preclude the deposit of any Housing and Redevelopment Authority funds in other officially designated depositories of the Housing and Redevelopment Authority. 3. The Treasurer and Finance Manager are hereby authorized to deposit Housing and Redevelopment Authority funds in various depositories up to the amount of $250,000, or such other amount as may be subsequently permitted by law, such , deposits to be in the form of demand accounts, payable to the Housing and Redevelopment Authority of Richfield on the signatures of the Housing and Redevelopment Authority Treasurer or Finance Manager. Such deposits may be made and withdrawn from time to time by the Treasurer or Finance Manager as his best judgment and the interests of the Housing and Redevelopment Authority dictates. 4. The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies of the Housing and Redevelopment Authority regarding the investment of Housing and Redevelopment Authority funds. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 22nd day of January, 2014. Chair ATTEST: Secretary �� RESOLUTION NO. RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2014 WHEREAS, the Housing and Redevelopment Authority of Richfield has money which is available for investment; and WHEREAS, different financial institutions offer different rates of return on investments; and WHEREAS, the Housing and Redevelopment Authority of Richfield shall purchase U. S. Treasury Bills, U. S. Treasury Notes and other such government securities in the manner required by law from the institution offering the highest rate to the Housing and Redevelopment Authority of Richfield providing greater flexibility in the investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment I Authority of Richfield, Minnesota, in accordance with Minnesota Statutes, Sections 118A.01 — 118A.06, as follows: 1. It is hereby found and determined that it is in the best interest of the proper management of Housing and Redevelopment Authority of Richfield funds that certain financial institutions be designated as additional depositories for Housing and Redevelopment Authority of Richfield funds for 2014. 2. The following financial institutions designated as depositories for the Housing and Redevelopment Authority of Richfield funds: RBC Dain Rauscher, Inc. Raymond James &Assoc. Wells Fargo Institutional Brokerage & Sales 4M Fund Northland Securities, Inc. 3. The Treasurer and Finance Manager are hereby authorized to deposit the Housing and Redevelopment Authority of Richfield funds in any or all of the depositories herein designated. Such deposits may be made and withdrawn from time to time by the Treasurer or Finance Manager's judgment and as the interest of the Housing and Redevelopment Authority of Richfield dictates. 4. The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies regarding the investment of these funds. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 22nd day of January, 2014. Chair ATTEST: Secretary AGENDA ITEM#: 4B REPORT#: 3 STAFF REPORT � �..�� ' l` HOUSING AND REDEVELOPMENT < � ` AUTHORITY MEETING JANUARY 22, 2014 REPORT PREPARED BY: CHERYL KRUMHOLZ, EXECUTNE COORDINATOR NAME,TITLE REPORT PRESENTER: STEVEN L. DEVICH,EXECUTIVE DIRECTOR NAMC,T�rc,E DEPARTMENT DIRECTOR REVIEW: � N/A ! ' SIGN T RE ,�� REVIEWED BY EXECUTIVE DIRECTOR: � ITEM FOR HRA CONSIDERATION: Consideration of designating the Community Development Director as the Acting Executive Director of the HRA for 2014 in the event the Executive Director is absent from the City. I. RECOMMENDED ACTION: By Motion: Designate the Community Development Director as the Acting Executive Director of the HRA in the event the Executive Director is absent from the City. II. EXECUTIVE SUMMARY Since the City Manager also serves as the HRA Executive Director, it is recommended that the Community Development Director be designated by the HRA as the Acting Executive Director to serve in that capacity during the absence of the Executive Director. III. BASIS OF RECOMMENDATION A. BACKGROUND • Past practice has been for the HRA to designate an Acting Executive Director for times when the Executive Director is absent from the City. 0122Act i n g E D i re cto rxxx B. PoLICY • Typically, this designation is made at the first meeting in January of each year. C. C�TICAL TIMING ISSUES • It is necessary to designate a person to serve as Acting Executive Director to ensure continuation of HRA operations during an absence of the Executive Director. D. FINANCIAL • This designation is at no additional cost to the HRA. E. LEGAL • N/A IV. ALTERNATIVE RECOMMENDATION�S� • The HRA could defer this designation to a future HRA meeting. V. ATTACHMENTS • None. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None. AGENDA ITEM#; 4C REPORT#: q STAFF REPORT t� � ' �'� HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 22, 2014 REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON,HOUSING SPECIALIST NAMB,TI7L,Ii REPORT PRESENTER: ��N BARTON,ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR Natirc, Ti7r.�' DEPARTMENT DIRECTOR REVIEW: � ic �nu� REVIEWED BY EXECUTIVE DIRECTOR: " ITEM FOR HRA CONSIDERATION: Acceptance of a $4,000 Metro Clean Energy Resource Teams Seed Grant from the Great Plains Institute for Sustainable Development, Inc. to develop a Latino Outreach plan for the Home Energy Squad Enhanced Program and consideration of a Contract with the Great Plains Institute for Sustainable Development, Inc. for the grant. I. RECOMMENDED ACTION: By Motion: 1. Adopt a resolution accepting a $4,000 Metro Clean Energy Resource Teams Seed Grant from the Great Plains Institute for Sustainable Development, Inc. to develop a Latino Outreach plan for the Home Energy Squad Enhanced Program, and 2. Appro_ve a Contract with the Great Plains Institute for Sustainable Development, Inc. to carry out activities relating to the rant. II. EXECUTIVE SUMMARY The Housing and Redevelopment Authority (HRA) has been offered a $4,000 Metro Clean Energy Resource Teams (CERT) Seed Grant to develop a Latino Outreach plan for the Home Energy Squad Enhanced (HESE) Program which provides low- cost energy visits to Richfield residents. If accepted, the grant will be used to pay 01222014 CERT Grant Contract.docx for consulting services of the Neighborhood Development Alliance (NeDA). Staff from NeDA will work with the HRA and the Center for Energy and Environment (CEE) to develop the Latino Outreach plan. In order to utilize the grant, the HRA needs to pass a resolution accepting the grant and approve a contract with the Great Plains Institute for Sustainable Development, Inc. (GPI). GPI is the agency providing the grand funds. III. BASIS OF RECOMMENDATION A. BACKGROUND • In October 2013, staff worked with the Center for Energy and Environment (CEE) and Neighborhood Development Alliance (NeDA) to apply for a Metro CERT Seed Grant to develop a Latino Outreach plan for the HESE Program. • In November 2013, staff was notified that the HRA had received a $4,000 grant to develop a Latino Outreach plan. • NeDA is a non-profit community development organization that was formed to strengthen the vitality of lower-income neighborhoods within the City of St. Paul, by creating and preserving housing and business opportunities for residents of all income levels. Over the years, NeDA's goals have expanded to include serving the Latino population in the seven county metro area. The grant will be used to hire NeDA to work with the HRA and CEE to develop the Latino Outreach plan. • NeDA currently offers Spanish-language homebuyer classes in the City. • The HRA works with CEE to offer low-cost energy visits to homeowners through the HESE Program. CEE will incorporate the Latino Outreach plan into their overall outreach and communications plan for HESE. B. PoLicY • The Home Energy Squad Enhanced (HESE) program furthers the following goals of the City's Comprehensive Plan: o Support the rehabilitation and upgrading of the existing housing stock. o Support ongoing maintenance and upkeep of residential properties. o Promote the maintenance of affordable housing in the City. • The grant will help to ensure that HESE is accessible to all eligible households in the community. • The number of Latino households in the community has grown in the last ten years; however, the number of Latino households accessing HRA housing programs has not. The Latino Outreach plan will provide information to staff to increase participation in HESE which can then be used to increase participation in other HRA programs. G C�TICAL TIM�G ISSUES • The grant needs to be accepted and the contract signed and returned to GPI by January 24, 2014. • The grant must be spent by December 31, 2014. D. FINANCIAL • The HRA seeks outside funding sources whenever possible to enhance local efforts. • The $4,000 will be used to hire NeDA to provide consulting services. • The HRA has sufficient staff resources to manage the grant. E. LEGAL • The Contract was reviewed by the HRA Attorney. IV. ALTERNATNE RECOMMENDATION�S� • Do not adopt the resolution and do not approve the contract. V. ATTACHMENTS • Resolution • Contract � VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A � �� / RESOLUTION NO. RESOLUTION ACCEPTING A 2014 METRO CERT SEED GRANT FROM THE GREAT PLAINS INSTITUTE FOR SUSTAINABLE DEVELOPMENT, INC ' WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield ("HRA"), applied for and received a $4,000 Metro CERT Seed Grant from the Great Plains Institute for Sustainable Development , Inc. for the development of a Latino Outreach plan for the Home Energy Squad Enhanced ("HESE") Program, and, WHEREAS, Minnesota Statute requires every acceptance of a grant or devise of real or personal property on terms prescribed by the donor be made by resolution; and, WHEREAS, the grant funds will be used for the development of a Latino Outreach � Plan for the HESE Program. NOW, THEREFORE, BE IT RESOLVED that the HRA will accept and administer the grant as required. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 22nd day of January, 2014. Chairperson ATTEST: Secretary Great Plains Institute yC"� 2014-MC-SG-RH 2014 CONSULTING CONTRACT BETWEEN THE GREAT PLAINS INSTITUTE FOR SUSTAINABLE DEVELOPMENT,INC. AND RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD Date: 1/23/2014 This Contract("Contract"), is made and entered into as of December 31 St, 2013 by and between the Great Plains ' Institute for Sustainable Development, Inc. (GPI), a Minnesota based not-for-profit corporation having its principal place of business at Suite 220, 2801 21St Avenue South, Minneapolis, MN 55407 (the "Client") and Richfield Housing and Redevelopment Authority in and for the City of Richfield a public body corporate and politic under the laws of Minnesota corporation having its place of business at 6700 Portland Avenue South, Richfield, MN 55423 the ("Contractor"). GPI and Contractor are hereinafter also referred to collectively as the"Parties"and individually as a"P�". RECITALS: The Contractor will assist the GPI with implementing a Metro CERT Seed Grant Project. NOW, THEREFORE, in consideration of the agreements set forth herein, the receipt and sufficiency of which is acknowledged, the parties agree as follows: AGREEMENTS: Term: The term of this Agreement will commence on January lst, 2014 and will expire on December 30th, 2014, unless earlier terminated pursuant to the Termination section. Termination: GPI may terminate this Agreement at any time for good cause at any time. For purposes of this Agreement, "good cause" includes, but is not limited to, the Contractor's willful misconduct, gross negligence or dishonesty in relation to the business and affairs of GPI or any other material breach of this Agreement by Contractor. In the event of an early termination of this Agreement, neither Party will have any further obligations hereunder except that each Party will promptly return to the other Party(or will destroy) all materials (in written, electronic or other form)provided to that Party and Contractor will provide to GPI any Works (as defined below). Upon such early termination, GPI will pay Contractor for any work performed by Contractor prior to the date of termination. Work nlan CERT funds will be used to fund a Neighborhood Development Alliance staff person to work with the Housing and Redevelopment Authority and the Center for Energy and Environment to undertake the following activities: 1. Evaluate the Home Energy Squad Enhanced Program to identify barriers to participation by Latino households. 2. Evaluate the current marketing plan and methods used by CEE and the City to communicate about the program. 3. Connect with churches, schools, social service organizations and businesses that serve the Latino community. 4. Identify the most effective ways to communicate the program benefits to Latino households. 5. Synthesize all information and develop a 1 of 5 �l�'-3 Great Plains Institute 2014-MC-SG-RH detailed outreach and marketing plan. 6. Develop specific components, including provide materials in Spanish; develop radio and TV ads on Spanish-speaking stations; offer home visits by Spanish- speaking technicians or providing a translator; capitalizing on word-of-mouth network by working with , area churches, schools, social services organizations, and businesses that serve the Latino community; ' and other unique methods that will come from working with NeDA and drawing on their experience of working with the Latino community. 7. Implement the plan. 8. Expand the program to other HESE communities, as applicable. Relationship: Contractor will at all times be an independent contractor and not an employee of GPI. Nothing contained herein or done in furtherance of this Agreement will cause either Party to be the agent of the other Party for any purpose whatsoever. GPI may contract with other parties for services which may or may not be similar to the services to be provided by Contractor hereunder. As an independent contractor, Contractor will not be included in or be a part of any of GPI's employee benefits plans, nor will Contractor be covered by GPI's insurance coverage (including, without limitation, professional liability insurance). GPI will not deduct from the fees paid to Contractor any federal, state or local income, disability insurance, social security or other payroll taxes,payments for unemployment compensation or any other type of withholding and the reporting and payment of such taxes is be the sole responsibility of Contractor. All payments made to Contractor by GPI pursuant to this Agreement may be reported to the Internal Revenue Service on Form 1099. Contractor is also solely responsible for the payment of all taxes, including, without limitation, self-employment taxes and payroll taxes, for payments from Contractor to its employees (if any) for work performed by Contractor pursuant to this Agreement. Subcontractors: The manner in which Contractor will render services to GPI will be within Contractor's sole control and discretion, subject to the terms of this Agreement. In rendering services for GPI, Contractor may, in its sole discretion, decide to use the services of its own employees or subcontractors, provided that Contractor will remain primarily responsible for the performance of its obligations under this Agreement. Contractor will notify all of its employees and subcontractors performing services pursuant to this Agreement of the Contractor's obligations hereunder and will cause all such employees and subcontractors to comply with such obligations. GPI will not supervise or instruct any employees or subcontractors whom Contractor decides to retain and Contractor will have the sole right to discipline or reassign any employees or subcontractors whom it elects to hire. Intellectual Property: All rights and intellectual property rights (including copyrights), in any work, including, without limitation, all plans, research results,publications, developments, reports,processes,programs, analyses, website content and other materials ("Works") created or developed by or on behalf of Contractor pursuant to this Agreement will be owned exclusively by GPI as "works made for hire." To the extent any such Works are deemed not to be works made for hire, Contractor hereby assigns all rights and intellectual property rights therein to GPI. GPI will provide full credit for authorship to Contractor as appropriate. GPI reserves the right(but not the obligation)to publicize Contractor's services. Lobbying Activities: In performing its obligations under this Agreement, Contractor will not engage in any federal, state or local lobbying activity as defined in Section 4911 of the Internal Revenue Code (or any similar state or local statute 2 of 5 �-l� � Great Plains Institute 2014-MC-SG-RH or regulation) and will not engage in any activity that would constitute participation in, or intervention in (including through the publishing or distribution of any statement), any political campaign on behalf of(or in opposition to) any candidate for public office within the meaning of Section 501(c)(3) of the Internal Revenue Code. Limitation of Liability: GPI will not be liable to Contractor for any incidental, indirect;special or consequential damages of any kind arising out of this Agreement or the relationship between GPI and Contractor, including, without limitation, loss of profit. The provisions of this section will survive the expiration or earlier termination of this Agreement. Assignment: Neither Party may assign this Agreement or any of its rights, interests or obligations hereunder, in whole or in part, without the prior written consent of the other Party. Any purported assignment in violation of the foregoing will be null and void ab initio and of no force or effect. This Agreement will be binding upon,and will inure to the benefit of, Contractor and GPI and their respective heirs, estate, legatees,personal and legal representatives and permitted successors and assigns. Compliance with Law: Each Party agrees that it will comply with all applicable laws,regulations,treaties and conventions and,to the extent applicabie,the United States Foreign Cbrrupt Practices Act. Governing Law: This Agreement will be governed by and construed in accordance with the laws of the State of Minnesota without regard to its conflict of laws principles. Any dispute between the parties relating to this Agreement will be resolved solely in the state or federal courts located in Minnesota. Complete Agreement and Amendment: This Agreement constitutes the complete and exclusive statement of the agreement between GPI and Contractor and supersedes all prior proposals(oral or written)and all other communications between GPI and Contractor relating to the subject matter of this Agreement. This Agreement may only be amended, or any provision waived, by written agreement executed by each Party. Notices: All notices and other communications pursuant to this Agreement must be in writing, addressed to the Parties at the applicable address set forth in the introductory paragraph to this Agreement(or such other address as a Party may from time to time specifically designate in writing), must be sent by a nationally recognized overnight courier and will be deemed given on the date delivery is first accepted or refused. Reporting: The Contractor will file an Interim and Final Report via email in conjunction with invoices to the project administrator and contract coordinator as listed below responding to the questions and fields contained in the Interim Report and Final Report forms. The Contractor will provide an Interim Report to GPI before 4:OOpm CST on June 15`", 2014. The Contractor may submit an interim invoice with the Interim Report for eligible expenses up to fifty percent of the full project award in conjunction with the Interim Report. If the Contractor has yet to begin project activities by June 15th, 2014, as demonstrated by its Interim Report, project funding will be revoked. The Contractor will provide a Final Report to GPI before 4:OOpm CST on December 30th, 2014. The Contractor must submit an invoice with the final report for eligible expenses, up to the remainder of the full project award. 3 of 5 �1�'_r Great Plains Institute ` `� 2014-MC-SG-RH Funds for July and any month thereafter will be released AFTER receipt of the Final Report due December 30tn, 2014. Additionally, Contractor agrees to assist GPI by responding in a timely way to any requests for reports from the Minnesota Department of Commerce and by responding to any questions raised by the Minnesota Department of Commerce with respect to the funds dispersed under this Agreement. Finally, Contractor agrees to participate in any calls and meetings with a GPI representative about the use of funds disbursed under this Agreement. Payment for Services: All invoices shall reference this contract. Total fees for this effort are not to exceed $4,000.00. Invoices for time shall be addressed to the contractor coordinator and delivered by the l Ot"of each month via email. Invoices shall separately detail the names and number of hours of each person. Invoices will be paid on Net 30 terms contingent on submission of the Interim and Final Report as detailed above under Reporting. The final payment will be made upon delivery and acceptance the final work product deliverable. Project Administrator: Trevor Drake Great Plains Institute for Sustainable Development 2801 21 St Ave. S., Suite 220 Minneapolis, MN 55407 tdrake@gpisd.net 612-767-7291 Fax: 612-278-7151 Contract Coordinator: Eric Schroeder , Great Plains Institute for Sustainable Development 2801 21 St Ave. S., Suite 220 Minneapolis, MN 55407 eschroeder(a�g_psid.net 612-278-7157 Fax: 612-278-7151 Contact Information for Contractor: Julie Urban/Kate Aitchison Richfield Housing and Redevelopment Authority 6700 Portland Avenue South Richfield, MN 55423 .jurbann,cityofrichfield.org or kaitchison cnr,citvofrichfield.org 612-861-9778 Fax: 612-861-8974 4 of 5 �� Great Plains Institute ` 2014-MC-SG-RH To Be Completed by CONTRACTOR: Company Name: Housing and Redevelopment Authority in and for the City of Richfield Tax I.D. #: 41- ' 6005490 Make checks payable to: Richfield HRA Submit Payment to: Richfield HRA � Attn: Julie Urban/Kate Aitchison � 6700 Portland Avenue South � Richfield, MN 55423 Under penalties of perjury, contractor certifies the following: 1. Certify that the Tax I.D. #you are giving is correct, 2. Certify that you are not subject to backup withholding, or 3. Claim exemption from backup withholding if you are a U.S. exempt payee. 4. You are a U.S. citizen or other U.S. person. IN WITNESS WHEREOF, the parties hereto have made and entered into this Contract as of the last date written below. CLIENT: THE GREAT PLAINS INSTITUTE FOR SUSTAINABLE DEVELOPMENT, INC. By: Date: Name: Rolf Nordstrom Its: Executive Director � CONTRACTOR: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By: Date: Name: Suzanne M. Sandahl Its: Chairperson By: Date: Name: Steven L. Devich Its: Executive Director 5 of 5 AGENDA ITEM#: 4D REPORT#: 5 STAFF REPORT ; / � ' �' HOUSING AND REDEVELOPMENT AUTHORITY MEETING .TANUARY 22, 2014 REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON,HOUSING SPECIALIST NAME,TITI.I: REPORT PRESENTER: ��N BARTON,ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR NAME,Ti7zE DEPARTMENT DIRECTOR REVIEW: � - /G URI% ; � j. REVIEWED BY EXECUTNE DIRECTOR: � ITEM FOR HRA CONSIDERATION: Consideration of a Professional Services Agreement with the Neighborhood Development Alliance to develo a Latino Outreach plan for the Home Ener Squad Enhanced Pro ram. L RECOMMENDED ACTION: By Motion: Approve a Professional Services Agreement with the Neighborhood Development Alliance to develop a Latino Outreach plan for the Home Energ Squad Enhanced Pro ram. II. EXECUTIVE SUMMARY The Housing and Redevelopment Authority (HRA) received a $4,000 Metro Clean Energy Resource Teams (CERT) Seed Grant to develop a Latino Outreach plan for the Home Energy Squad Enhanced (HESE) Program. The grant will be used to pay for consulting services of the Neighborhood Development Alliance (NeDA). Staff from NeDA will work with the HRA and the Center for Energy and Environment (CEE) to develop the Latino Outreach plan. The Professional Services Agreement outlines the work to be performed by NeDA. III. BASIS OF RECOMMENDATION A. BACKGROUND 01222014 NeDA Professional Services Agreement.docx • In November 2013, staff was notified that the HRA had received a $4,000 Metro CERT Seed Grant to develop a Latino Outreach plan. • The grant will be used to hire NeDA to work with the HRA and CEE to develop a Latino Outreach plan. ', • NeDA is a non-profit community development organization that was I formed to strengthen the vitality of lower-income neighborhoods within the City of St. Paul, by creating and preserving housing and business opportunities for residents of all income levels. Over the years, NeDA's goals have expanded to include serving the Latino population ' in the seven county metro area. • NeDA currently offers Spanish-language homebuyer classes in the City. B. POLICY • The Home Energy Squad Enhanced (HESE) program furthers the following goals of the City's Comprehensive Plan: o Support the rehabilitation and upgrading of the existing housing stock. o Support ongoing maintenance and upkeep of residential properties. o Promote the maintenance of affordable housing in the City. • The number of Latino households in the community has grown in the last ten years; however, the number of Latino households accessing HRA housing programs has not. The Latino Outreach plan will provide information to staff to increase participation in HESE which can then be used to increase participation in other HRA programs. C. CRITICAL TIMING ISSUES • The grant must be spent by December 31, 2014. Approval of the Professional Services Agreement will enable NeDA to begin working on the project and complete it in a timely manner. D. FINANCIAL • The $4,000 will be used to hire NeDA to provide consulting services. • The HRA has sufficient staff resources to manage the Agreement. E. LEGAL • The Professional Services Agreement was prepared by the HRA Attorney. IV. ALTERNATNE RECOMMENDATION(S� • Do not to approve the Agreement. V. ATTACHMENTS • Professional Services Agreement. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A � ��-I PROFESSIONAL SERVICE AGREEMENT Neighborhood Development Alliance THIS PROFESSIONAL SERVICE AGREEMENT (the "Agreement") made and entered into by and between the Housing and Redevelopment Authority in and for the City of Richfield, State of Minnesota, hereinafter referred to as the "HRA", and the Neighborhood Development Alliance, hereinafter referred to as "the Contractor". WITNESSETH: WHEREAS, the HRA wishes to purchase the services of the Contractor; and WHEREAS, the Contractor wishes to provide the services to the HRA. NOW, THEREFORE, in consideration of the mutual undertakings and agreements hereinafter set forth, the HRA and the Contractor agree as follows: 1. SCOPE OF SERVICES AND TERM The Contractor shall perForm the work as described in Exhibit A to this Agreement, which is incorporated herein by reference. The Contractor agrees to comply with all federal, state, and local laws and ordinances applicable to the services to be perFormed under this Agreement, including all safety standards. The Contractor shall be solefy and completely responsible for conditions of the job site, including the safety of all persons and property during the per�ormance of the services. The Contractor represents and warrants that it has the requisite training, skills, and experience necessary to provide the services and is appropriately licensed by all applicable agencies and governmental entities. The Contractor shall not perform any additional services without the express written permission of the HRA. This Agreement is effective beginning January 23, 2014 and will be in effect until December 31, 2014, unless cancelled by either party under paragraph 11 of this Agreement. 2. PAYMENT FOR SERVICES /� '� Invoices must be submitted monthly. Payment for services shall be made directly to the Contractor by check. Invoices shall be of sufficient detail for the HRA to determine the activity and personnel for which payment is being made. Payment shall be made within 30 days of receipt of an invoice by the HRA. The total payments for services provided under this agreement shall not exceed $4,000.00. The HRA shall not withhold monies for the payment of any federal or state income taxes, social security benefits, or other taxes from payments made under this Agreement. If the HRA objects to all or any portion of any invoice, the HRA shall notify the Contractor of the dispute with ten (10) days from the date of receipt and shall pay that portion of the invoice not in dispute. 3. INDEPENDENT CONTRACTOR The Contractor shall select the means, method, and manner of performing the services herein in consultation with the HRA. Nothing is intended or should be construed in any manner as creating or establishing the relationship of copartners between the Contractor and the HRA or as constituting the Contractor as the agent, representative, or employee of the HRA for any purpose or in any manner whatsoever. The Contractor is to be and shall remain an independent contractor with respect to all services performed under this Agreement. The Contractor represents that it has or will secure at its own expense all personnel required in performing services under this Agreement. Any and all personnel of the Contractor or other persons while engaged in the perFormance of any work or services required by this Agreement shall have no contractual relationship with the HRA, and shall not be considered employees of the HRA. The Contractor shall also supply, at its own expense, all materials, supplies, equipment and tools required to accomplish the work contemplated by this Agreement. Any and all claims that may or might arise under the Unemployment Compensation Act or the Workers' Compensation Act of the State of Minnesota on behalf of said personnel, arising out of employment, including, without limitation, claims of discrimination against The Contractor, its officers, agents, contractors, or employees shall in no way be the responsibility of the HRA. The Contractor shall indemnify and hold the HRA, its officers and employees harmless from any and all such claims irrespective of any determination of any pertinent tribunal, agency, board, commission, or court. The Contractor, anyone directly or indirectly employed by the Contractor, subcontractors of the Contractor or other persons shall neither require nor be entitled to any compensation, rights, or benefits of any kind whatsoever from the HRA, including, without y�- 3 limitation, tenure rights, insurance benefits, sick and vacation leave, workers' compensation benefits, unemployment compensation, disability, severance pay, retirement benefits (including but not limited to PERA). 4. NONDISCRIMINATION The HRA operates in accordance with the City of Richfield's policies against discrimination. The Contractor shall abide by all City policies, as well as all applicable Federal and State laws, against discrimination including, but not limited to, Minn. Stat. § 181.59. 5. INDEMNITY To the fullest extent permitted by law, the Contractor agrees to defend, indemnify and hold harmless the HRA, and its employees, officials, ', volunteers and agents from and against all claims, actions, damages, ', losses and expenses, including attorney fees, arising out of the , Contractor's negligence or the Contractor's perFormance or failure to ' perForm its obligations under this Agreement. The Contractor's indemnification obligation shall apply to the Contractor's subcontractor(s), I or anyone directly or indirectly employed or hired by the Contractor, or anyone for whose acts the Contractor may be liable. The Contractor agrees this indemnity obligation shall survive the completion or termination of this Agreement. 6. INSURANCE A. Liabilitv. The Contractor agrees to maintain commercial general liability insurance in a minimum amount of$1,000,000 per occurrence; $2,000,000 annual aggregate. The policy shall cover liability arising from premises, operations, products-completed operations, personal injury, advertising injury, and contractually assumed liability. The HRA shall be named as an additional insured. B. Automobile Liabilitv. If the Contractor operates a motor vehicle in performing the services under this Agreement, the Contractor shall maintain commercial automobile liability insurance, including owned, hired, and non-owned automobiles, with a minimum liability limit of $1,000,000, combined single limit. C. Workers' Compensation. The Contractor agrees to comply with all applicable workers' compensation laws in Minnesota. D. Certificate of Insurance. The Contractor shall, prior to commencing services, deliver to the HRA a Certificate of Insurance as evidence that the above coverages are in full force and effect. 7. RECORDS -AVAILABILITY !'J -� The Contractor agrees that the HRA, the State Auditor, or any of their duly authorized representatives at any time during normal business hours and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and transcribe any books, documents, papers, records, etc., which are pertinent to the accounting practices and procedures of the Contractor and involve transactions relating to this Agreement. Records shall be retained for three years from date of final payment with respect to the project. All reports, memos, and other data produced by the Contractor shall become the`property of the H RA. - 8. DATA PRACTICES COMPLIANCE This contract is governed by Minnesota Statutes, § 13.05, subds. 6 and 11, the provisions of which are incorporated by reference into this � contract. The HRA agrees to give the Contractor access to data collected or maintained by the HRA as necessary to perform the Contractor's obligations under this Agreement. The Contractor agrees to maintain all data obtained from the HRA consistent with the requirements of the Minnesota Government Data Practices Act, Minn. Stat. §§ 13.02 et se . The Contractor will not release or disclose the contents of data classified as not public to any person except at the written direction of the HRA. The Contractor agrees to indemnify the HRA from any claim, liability, damage or loss asserted against HRA as a result of the Contractor's failure to comply with the requirements of this paragraph; provided that the Contractor shall have no duty to defend or indemnify where the Contractor has acted in conformance with the HRA's written directions. Upon termination of this contract, the Contractor agrees to return data to the HRA, as requested by the HRA. 9. NON-ASSIGNMENT The Contractor shall not assign, subcontract, transfer, or pledge this , contract and/or the services to be perFormed hereunder, whether in whole i, or in part, without the prior written consent of the HRA. To the extent that I the HRA consents to the subcontracting of any of the services of this agreement, the Contractor agrees to bind every subcontractor by the applicable terms, conditions, and provisions to the subcontractor's work as set forth in this Agreement, unless otherwise specifically agreed otherwise in writing by the HRA, and to pay every subcontractor within 10 days of receipt of payment from the HRA pursuant to Minn. Stat. § 471.425. 10. MERGER AND MODIFICATION It is understood and agreed that the entire agreement between the parties is contained herein and that this Agreement supersedes all oral y� � agreements and negotiations between the parties relating to the subject matter hereof. All items referred to in this Agreement are incorporated or attached and are deemed to be part of this Agreement. Any material alterations, variations, modifications, or waivers of provisions of this Agreement shall only be valid when they have been reduced to writing as an amendment to this Agreement signed by the parties hereto. 11. DEFAULT AND CANCELLATION The HRA shall have the option to terminate this Agreement at any time. Termination shall be effective upon ten (10) days written notice to the Contractor. If the Contractor refuses or fails to complete the tasks described in paragraph 1, or to complete the services in a manner satisfactory to the HRA, the HRA may, by written notice to the Contractor, give notice of its intention to terminate this Agreement. After such notice, the Contractor shall have ten (10) days to cure, to the satisfaction of the HRA. If the Contractor fails to cure, the HRA shall send the Contractor a written termination letter which shall be effective upon deposit in the United States mail to the Contractor's address as stated in paragraph 13. In the event of termination, the HRA shall only be responsible to pay for all services satisfactorily performed by the Contractor to the effective date of termination, as described in the final invoice to the HRA. 12. CONTRACT ADMINISTRATION In order to coordinate the services of the Contractor with the activities of the HRA so as to accomplish the purposes of this contract, Julie Urban and Kate Aitchison shall manage this contract on behalf of the HRA. In addition, from time to time, meetings shall be held between the Contractor and HRA staff. The Contractor may also report directly to the HRA Board of Commissioners. 13. NOTICES Any notice or demand which must be given or made by a party hereto under the terms of this Agreement shall be in writing. Notices shall be sent as follows: Community Development Department Julie Urban/Kate Aitchison, Housing Specialists �� °� 6700 Portland Avenue South Richfield, MN 55423 Neighborhood Development Alliance Karen Reid, Executive Director 481 Wabasha Street South St. Paul, MN 55107 14. GENERAL PROVISIONS A. Nondiscrimination. In the hiring of employees to perForm work under this Agreement, the Contractor shall not discriminate against any person by reason of any characteristic protected by state or federal law. B. Force Majeure. Except for payment of sums due, neither party shall be liable to the other or deemed in default under this Agreement, if and to the extent that such party's performance is prevented by reason of Force Majeure, as determined by the HRA. C. Governinq Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Minnesota. All proceedings related to this Agreement shall be venued in the State of Minnesota. D. Waivers. The waiver by either party of any breach or failure to comply with any provision of this Agreement by the other party shall not be construed as, or constitute a continuing waiver of such provision or a waiver of any other breach of or failure to comply with any other provision of this Agreement. E. Ownership of Documents. All reports, plans, specifications, data, maps, and other documents produced by the Contractor in the performance of services under this Agreement shall be the property of the HRA. F. Counterparts. This Agreement may be signed in counterparts, each of which shall be deemed an original, and which taken together shall be deemed to be one and the same document. G. Savings Clause. If any court finds any portion of this Agreement to be contrary to law, invalid, or unenforceable, the remainder of the Agreement will remain in full force and effect. ��1�,� � The Neighborhood Development Alliance having signed this contract, and the HRA having duly approved this contract on January 22, 2014, and pursuant to such approval and the proper HRA officials having signed this contract, the parties hereto agree to be bound by the provisions herein set forth. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD , STATE OF MINNESOTA 'i By: Executive Director By: Chairperson NEIGHBORHOOD DEVELOPMENT ALLIANCE By: its By: its ��s� EXHIBIT A SCOPE OF WORK • Attend initial meeting with staff from City of Richfield and Center for Energy and Environment (CEE) and develop a work schedule. • Evaluate the Home Energy Squad Enhanced Program (HESE) to identify barriers to participation by Latino households. • Evaluate the current marketing plan and methods used by CEE and the City to communicate about the program and identify barriers to reaching Latino households. � • Connect with churches, schools, social service organizations and businesses that serve the Latino community. • Identify the most effective ways to communicate the program benefits to Latino j households. • Synthesize all information and work with CEE and the City to develop a detailed outreach and marketing plan. • Provide information to CEE and the City regarding Spanish-language resources (e.g., translation and interpretor services). • Assist CEE and the City in beginning the implementation of the outreach and marketing plan. �� LATINO OUTREACH PROGRAM BUDGET Activity Amount Source . NeDA Staff(88.8 hours x$45/hour) $4,000 CERT Seed Grant NeDA Additional staff time ($45 x 50 hours) $2,250 NeDA . . � Interpreter (2 workshops; 10 home visits) $540 CEE/Richfield HRA Richfield HRA contribution to HESE Program visits $5,250 Richfield HRA ($70/visit x 75 visits—max.) Richfield HRA staff time (52 hours x$40) $2,075 Richfield HRA HRA marketing expenses $1,000 Richfield HRA CEE Marketing, outreach and recruitment expenses. $4,500 CEE Assistance from field staff with technical translation TOTAL $19,615 AGENDA ITEM#: 5 'i REPORT#: 6 STAFF REPORT A� � �' HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 22, 2014 REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON, HOUSING SPECIALISTS � NAM�, T!T[,� REPORT PRESENTER: ��N BARTON,ASSISTANT COMMUNITY DEVELOPMENT DIRECTOR Na,uc,Ti7tL DEPARTMENT DIRECTOR REVIEW: � TU "�i 1 REVIEWED BY EXECUTIVE DIRECTOR: �� '� � � , _ , � � ITEM FOR I�A CONSIDERATION: Consideration of proposed sale of four lots (6220 15th Avenue, 6336 15th Avenue and 6416 & 6420 16th Avenue) to Twin Cities Habitat for Humanity, Inc. for development of four single- famil homes throu h the New Home ro ram. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: 1. Approve a resolution authorizing the sale of 6220 15th Avenue to Twin Cities Habitat for Humanity, Inc., and approve a contract with Habitat for Humanity, Inc. for the development of a single- family home; 2. Approve a resolution authorizing the sale of 6336 15th Avenue to Twin Cities Habitat for Humanity, Inc., and approve a contract with Habitat for Humanity, Inc. for the development of a single- family home; and 3. Approve a resolution authorizing the sale of 6416 16th Avenue to Twin Cities Habitat for Humanity, Inc., and approve a contract with Habitat for Humanity, Inc. for the development of a single- family home. 4. A rove a resolution authorizin the sate of 6420 16th Avenue 01222014 Sale of 6220 15`h to TCHFH.docx to Twin Cities Habitat for Humanity, Inc., and approve a contract with Habitat for Humanity, Inc. for the development of a single- famil home. II. EXECUTIVE SUMMARY Twin Cities Habitat for Humanity (TCHFH) is proposing to purchase three properties (four lots) from the Housing & Redevelopment Authority (HRA), contingent upon award of Federal HOME funds, to construct four new homes to be sold to households with incomes no greater than 60 percent of the Twin Cities Area Median Income (AMI). TCHFH is proposing to apply for federal HOME funds to purchase the properties for$25,000 each. III. BASIS OF RECOMMENDATION A. BACKGROUND • Table 1 addresses the acquisition of the specific lots, along with the development proposed for each property: Table 1: Properties for proposed sale to TCHFH Address Acquisition History Future Development • Purchased in 2009 • 1,797 square feet 1. 6220 15th Avenue ' Purchase price: $85,000 • 4 bedrooms, 2 baths • Appraised value (2012): • 2-car detached garage $43,500 See plans in attachments • Purchased in 2009 • 1,407 square foot, 2. 6336 15th Avenue ' Purchase Price: $87,900 • 4 bedrooms, 2 baths • Appraised value (2012): • 2-car detached garage $43,500 See plans in attachments • 1,493 square foot, 3. 6416 16th Avenue • 4 bedrooms, 2 baths and a (one lot of double lot) • 2-car detached garage • Purchased in 2013 See plans in attachments • Purchase Price: $92,500 • 1,797 square foot 4. 6420 16th Avenue • 4 bedrooms, 2 baths (one lot of double lot) • 2-car detached garage See plans in attachments • TCHFH is applying for Federal HOME funds to purchase the properties, and the application is due on February 27, 2014. • Under the New Home Program, the HRA has partnered with nonprofit developers to construct 51 affordable homes since 1981. • In the past ten years, the HRA has constructed 26 new market rate single family homes, with six additional to be completed in 2014. In that same time period, six new homes were constructed under the New Home program for affordable purchase. • Since 2008, the HRA has partnered with a non-profit developer to construct just one new home. Because of the oversupply on the market, the HRA focused on purchasing and land-banking properties for future development of affordable housing. The oversupply has since been absorbed and the market is able to sustain new units. • TCHFH has the experience, capability, and financial security to develop the properties and has previously constructed ten homes throughout the City. • The New Home Program allows homes to be sold to households earning up to 80 percent of AMI; however, TCHFH's policy is to target households whose income does not exceed 60 percent of the AMI (approx. $49,740 for a family of 4). • TCHFH achieves long-term affordability with its projects by retaining the right to repurchase a home it has developed and resell to income- qualified families. B. POLICY • The New Home Program implements the goal of the Comprehensive Plan to ensure sufficient diversity in the housing stock to provide for a range of household sizes, income levels and needs. The Program carries out the policies that support this goal, including: o Promote the development of a balanced housing stock that is available to a range of income levels. o 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 • TCHFH is applying for Federal HOME funds to purchase the properties, and the application is due on February 27, 2014. The application requires demonstration of site control. • Assuming award of HOME funds, construction would occur in 2015. • TCHFH hosted a neighborhood open house on January 15 to share plans and answer questions. D. FINANCIAL • TCHFH is proposing to pay the HRA $25,000 for each of the four lots. • Purchase of the property is contingent upon TCHFH being awarded funds to purchase the property. • The property is located within the 2007 63 or greater DNL contour, and the Zoning Ordinance will require that sound attenuation measures be installed in the new home. TCHFH will provide the financial resources to pay for these increased costs. E. LEGAL • Notice of the public hearing was published in the Sun Current on January 9, 2014. • Mailed notice was also sent as a courtesy to homeowners and occupants within 350 feet of the property. IV. ALTERNATNE RECOMMENDATION�S� • Do not approve one or more of the resolutions authorizing sale of the properties to TCHFH. V. ATTACHMENTS • Resolutions • Contracts for Development • Photos of the lots • Site Plans • Elevations VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Chad Dipman, Twin Cities Habitat for Humanity �/ / HRA RESOLUTION NO. RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT 6220 15TH AVENUE TO TWIN CITIES HABITAT FOR HUMANITY, INC. IN ACCORDANCE WITH A CONTRACT FOR DEVELOPMENT WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in furtherance of the New Home Program adopted by the HRA, said real property being described as follows: � Address Legal 6220 15th Avenue Lot 9, Block 1, Nokomis Gardens Rearrangement of Blocks One (1), Two (2), Three (3), Four (4) and Five (5), Girard Parkview, Hennepin County, Minnesota WHEREAS, the HRA is authorized to sell real property within its area of operation after public hearing; and WHEREAS, a developer, Twin Cities Habitat for Humanity, Inc., has been identified as the purchaser of the described property and in accordance with a I Development Agreement; and I� i WHEREAS, a public hearing has been held after proper public notice. ',, NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment ',, Authority in and for the City of Richfield: 1. A public hearing has been held and 6220 15th Avenue is authorized to be sold ' for $25,000 to Twin Cities Habitat for Humanity, Inc. in accordance with a Development Agreement with the HRA. 2. The Chairperson and Executive Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sale to Twin Cities Habitat for Humanity, Inc. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 22nd day of January, 2014. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary �� HRA RESOLUTION NO. RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT I 6336 15TH AVENUE TO TWIN CITIES HABITAT FOR HUMANITY, INC. IN ACCORDANCE WITH A CONTRACT FOR DEVELOPMENT WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in furtherance of the New Home Program adopted by the HRA, said real property being described as follows: , Address Legal 6336 15th Avenue Lot 10, Block 2, Nokomis Gardens Rearrangement of Block 1, 2, 3, 4, and 5, Girard Parkview, Hennepin County, MN WHEREAS, the HRA is authorized to sell real property within its area of operation after public hearing; and WHEREAS, a developer, Twin Cities Habitat for Humanity, Inc., has been identified as the purchaser of the described property and in accordance with a Development Agreement; and WHEREAS, a public hearing has been held after proper public notice. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield: 1. A public hearing has been held and 6336 15th Avenue is authorized to be sold for $25,000 to Twin Cities Habitat for Humanity, Inc. in accordance with a Development Agreement with the HRA. 3. The Chairperson and Executive Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sale to Twin Cities Habitat for Humanity, Inc. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 22nd day of January, 2014. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary 5 -3 HRA RESOLUTION NO. RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT 6416 16TH AVENUE TO TWIN CITIES HABITAT FOR HUMANITY, INC. IN ACCORDANCE WITH A CONTRACT FOR DEVELOPMENT WHEREAS, the Housing and Redevelopment Authority in and for the City of �, Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in furtherance of the New Home Program adopted by the HRA, said real property being described as follows Address Legal 6416 16th Avenue Lot 5, Block 11, Nokomis Gardens Rearrangement of Blocks 7, 11, and 12, Girard Parkview WHEREAS, the HRA is authorized to sell real property within its area of operation after public hearing; and WHEREAS, a developer, Twin Cities Habitat for Humanity, Inc., has been identified as the purchaser of the described property and in accordance with a Development Agreement; and WHEREAS, a public hearing has been held after proper public notice. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield: 1. A public hearing has been held and 6416 16th Avenue is authorized to be sold for $25,000 to Twin Cities Habitat for Humanity, Inc. in accordance with a Development Agreement with the HRA. 4. The Chairperson and Executive Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sale to Twin Cities Habitat for Humanity, Inc. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 22nd day of January, 2014. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary 5 -� HRA RESOLUTION NO. RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT� 6420 16TH AVENUE TO TWIN CITIES HABITAT FOR HUMANITY, INC. IN ' ACCORDANCE WITH A CONTRACT FOR DEVELOPMENT � WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) desires to develop certain real property pursuant to and in furtherance of the New Home Program adopted by the HRA, said real property being described as follows: Address Legal 6420 16th Avenue Lot 6, Block 11, Nokomis Gardens Rearrangement of Blocks 7, 11, and 12, Girard Parkview WHEREAS, the HRA is authorized to sell real property within its area of operation after public hearing; and WHEREAS, a developer, Twin Cities Habitat for Humanity, Inc., has been identified as the purchaser of the described property and in accordance with a Development Agreement; and WHEREAS, a public hearing has been held after proper public notice. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in and for the City of Richfield: 1. A public hearing has been held and 6420 16th Avenue are authorized to be sold for $25,000 to Twin Cities Habitat for Humanity, Inc. in accordance with a Development Agreement with the HRA. 5. The Chairperson and Executive Director are authorized to execute a Contract for Private Development and other agreements as required to effectuate the sale to Twin Cities Habitat for Humanity, Inc. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 22nd day of January, 2014. Suzanne M. Sandahl, Chair ATTEST: Doris Rubenstein, Secretary 5-s CONTRACT FOR DEVELOPMENT Between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA and TWIN CITIES HABITAT FOR HUMANITY at 622015th AVENUE SOUTH, RICHFIELD This Instrument Drafted by: The Housing and Redevelopment Authority in and for the City of Richfield 6700 Portland Avenue South Richfield,Minnesota 55423 � Telephone: (612)861-9760 �� CONTRACT FOR DEVELOPMENT THIS CONTRACT FOR DEVELOPMENT (Agreement), made and entered into as of this_of , 2014, by and between the Housing and Redevelopment Authority in and for the City of Richfield, a body corporate and politic under the laws of the State of Minnesota, having its principal office at 6700 Portland Avenue, Richfield, Minnesota (HRA), and Twin Cities Habitat For Humanity, Inc. (TCHFH), a non-profit corporation under the laws of Minnesota, having its principal office at 3001 Fourth Street SE, Minneapolis, MN 55414 (Developer). WITNESSETH: WHEREAS, the HRA has purchased the property at 6220 15th Ave South, Richfield, legally described as Lot 9, Block 1, Nokomis Gardens Rearrangement of Blocks One (1), Two (2), Three (3), Four (4) and Five (5), Girard Parkviewz Hennepin County (the Property), for the purpose of providing affordable housing in the City; and , WHEREAS, the City of Richfield (City) and the HRA have previously created and established a New Home Program, pursuant to the authority granted in Minnesota Statutes, Sections 469.001 through 469.047; and WHEREAS, the Developer has proposed the Improvements, as hereinafter defined, for the Property which the HRA has determined will promote and carry out the objectives for which the Property was purchased; will assist in carrying out the objectives of the New Home Program; and will be in the vital best interests of the City, and the health, safety and welfare of its residents and in accord with the public purposes and provisions of the applicable state and local laws and requirements. NOW, THEREFORE, in consideration of the mutual covenants and obligations of the HRA and the Developer, each party does hereby represent, covenant and agree with the other as follows: ARTICLE I. DEFINITIONS, EXHIBITS,RULES OF INTERPRETATION Section 1.1. Definitions. In this Agreement, the following terms have the meaning given below unless the context clearly requires otherwise: (a) C�. The City of Richfield, Minnesota. (b) Construction Plans. Collectively, the plans, drawings and related documents related to the Improvements, which are listed on Exhibit A. (c) Developer. Twin Cities Habitat For Humanity(TCHFH). 1 s_ � (d) Develonment. The Property and the Improvements to be constructed thereon according to the Construction Plans approved by the HRA. j I (e) Event of Default. Event of Default has the meaning given such term in Section 8.1. � (f) Holder. The term "holder" in reference to a Mortgage includes a lender, any insurer or guarantor (other than the Developer) of any obligation or condition secured by such mortgage or deed of trust. (g) Housin� and Redevelopment Authorities Act (HRA Act). Minnesota Statutes Sections 469.001 through 469.047. (h) HRA. The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. (i) Improvements. Each and all of the structures and site improvements constructed or renovated on the Property by the Developer, as specified in the Construction Plans approved by the HRA. (j) Mort�a�e. The term "mortgage" shall include the mortgages referenced in Article VI of this Agreement and any deed of trust or other instrument creating an encumbrance or lien upon the Property of any part thereof, as security for a loan. (k) New Home Program. HRA program to encourage development of new housing opportunities for low to moderate income buyers. (1) Pro er . The real property legal described as: Lot 9, Block 1,Nokomis Gardens Rearrangement of Blocks One (1), Two (2), Three(3), Four(4) and Five (5), Girard Parkview, Hennepin County, Minnesota, according to the map or plat thereof on file or of record in the office of the Hennepin County Recorder. having a street address o£ 6220 15th Ave South, Richfield (m) Quali�ed Buver. A purchasing family (2 or more person household) whose income does not exceed 60 percent of the Twin Cities area median income, is a first time buyer, and is qualified to buy the Property for owner occupancy. (n) Unavoidable Delavs. Delays which are the direct result of strikes, labor troubles, fire or other casualty to the Improvements, natural disasters, 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 Developer. 2 �� Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: A. List of Construction Plan Documents ' B. Form of Quit Claim Deed C. Form of Certificate of Completion Section 1.3 Rules of Interpretation. (a) This Agreement shall be interpreted in accordance with and governed by the laws of the State of Minnesota. (b) The words "herein" and "hereof' and words of similar import, without reference to any particular section or subdivision refer to this Agreement as a whole rather than any particular section or subdivision hereof. (c) References herein to any particular section or subdivision hereof are to the section or subdivision of this Agreement as originally executed. (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 UNDERTAHINGS Section 2.1 Bv the Developer. The Developer makes the following representations and warranties as the basis for undertakings on its part herein contained: (a) The Developer has the legal authority and power to enter into this Agreement, and has duly authorized the .execution, delivery and performance of this Agreement; and the individual(s) who execute this Agreement on behalf of the Developer have the power and authority to bind the Developer; (b) The Developer has the necessary equity capital or will obtain commitments for financing necessary for construction of the Improvements; (c) The Developer will construct the Improvements in accordance with the terms of this Agreement, the Construction Plans, and all local, state and federal laws and regulations; (d) The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws and regulations which must be obtained or met before the Improvements may be constructed; and 3 �� / (e) The plans for the Improvements have been prepared by a qualified draftsperson or architect. Section 2.2 Bv the HRA. The HRA makes the following representations as the basis for the undertaking on its part herein contained: ', i (a) The HRA is authorized by law to enter into this Agreement, to carry out its obligations hereunder, and the individuals who execute this Agreement on behalf of the HRA have the power and authority to bind the HRA; and (b) The HRA will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Developer and will cooperate with the efforts of Developer to secure the granting of any permit, license, or other approval required to allow the construction of the Improvements; provided, however, that nothing contained in this subparagraph 2.2(b) shall be construed to limit in any way the reasonable and legitimate exercise of the HRA's discretion considering any submittal or application. ARTICLE III. ACQUISITION OF PROPERTY; CONVEYANCE TO DEVELOPER Section 3.1 Sale of Propertv to Developer. The HRA is the fee owner of the Property. The HRA agrees to sell the Property to the Developer and the Developer agrees to purchase the Property from the HRA in an "as is" condition. The HRA agrees to convey the Property to the Developer by Quit Claim Deed in the general form of Exhibit B. The purchase price for the Property will be $25,000. Section 3.2 Title and Examination. As soon as reasonably possible after execution of this Agreement by both parties, (a) HRA shall surrender any abstract of title and a copy of any owner's title insurance policy for the property, if in HRA's possession or control, to Developer or to Developer's designated title service provider; and (b) Developer shall obtain the title evidence determined necessary or desirable by Developer or Developer's lender, including but not limited to title searches, title examinations, abstracting, a title insurance commitment or an attorney's title opinion, at Developer's selection and cost, and provide a copy to the HRA. The Developer shall have 20 days from the date it receives such title evidence to raise any objections to title it may have. Objections not made within such time will be deemed waived. The HRA shall have 90 days from the date of such objection to affect a cure; provided, however, that the HRA shall have no obligation to cure any objections, and may inform Buyer of such. The Buyer may then elect to close notwithstanding the uncured objections or declare this Agreement null and void, and the parties will thereby be released from any further obligation hereunder. 4 ` �"-�-/l� Section 33 Well Disclosure. Seller does not know of any wells on the property. Section 3.4 Closing. Closing on the Property will take place on or before November 30, i 2014, or such other date as may be agreed to by the parties in writing. At Closing, the Developer will provide the HRA with the purchase price of the property. If closing has not occurred by November 30, 2414, either party may terminate this Agreement[; provided, however, that if the Developer is unable to obtain financing for the Improvements in 2014,the Executive Director of the HRA may extend the deadline for Closing to on or before November 30, 2015]. Section 3.5. Closin� Costs. The Developer will pay: (a)the closing fees charged by its title insurance company or other closing agent, if any, utilized to close the transaction for Developer; and (b) the recording fees for the Contract for Private Development and the deed transferring title to the Developer. The HRA will pay all other fees normally paid by sellers, including: any transfer taxes, and any fees and charges related to the filing of any instrument required to make title marketable. Each party shall pay its own attorney fees. Section 3.6. Sewer and Water. HRA warrants that city water is available at the lot line and city sewer is available at the curb. Section 3.7. ISTS Disclosure. HRA (is) (is not) aware of any individual sewage treatment system on the property. Developer is responsible for all costs of removing any individual sewage treatment system that may be discovered on the Property. Section 3.8. Taxes and Special Assessment. Real estate taxes and installments of special assessments will be prorated between the HRA and Developer as of the date of closing. Section 3.9 Soil Conditions and Hazardous Wastes. The Developer acknowledges that the HRA makes no representations or warranties as to the conditions of the soils on the Property, its fitness for construction of the Improvements or any other purpose for which the Developer may make use of the Property, or regarding the presence of hazardous wastes, pollution or contamination on the Property. The HRA will allow reasonable access to the Property for the Developer to conduct such tests regarding soil conditions and hazardous wastes as the Developer may desire. Permission to enter the Property to conduct such tests must be given in writing under the terms and conditions established by the HRA. Section 3.10 Survev. The HRA will allow reasonable access to the Property for the Developer to conduct a survey. Permission to enter the Property to conduct such tests must be given in writing under the terms and conditions established by the HRA. Section 3.11 Trees. All healthy trees will be saved and protected by the Developer during construction, to the extent possible, except those that specifically interfere with the construction of the Improvements. Trees requested to be removed must be identified by type on the site plan provided by the Developer. Section 3.12 Sale to Qualified Buver; Covenant on Use. The Developer agrees to convey the Property and Improvements to a Qualified Buyer within 180 days of issuance of a Certificate of 5 S- // Occupancy or after that time as agreed upon by the parties. The Developer must obtain the HRA's prior approval of the terms and conditions of the purchase agreement with the Qualified Buyer, and �, the agreement terms and conditions must be consistent with a housing services agreement to be I, executed by the HRA and Qualified Buyer. This Agreement constitutes a covenant on the part of the Developer, its successors and assigns, to use the Property and Improvements for owner- occupied, single-family residential purposes as permitted by the City. ARTICLE IV. CONSTRUCTION OF IMPROVEMENTS Section 4.1. Construction of Improvements. The Developer shall construct the Improvements on the Property at the Developer's cost in accordance with the Construction Plans, and shall maintain, preserve and keep the Improvements in good repair and condition until sale of the Property to a Qualified Buyer. Section 4.2. Building Plans. The Developer agrees that the City of Richfield building official may withhold issuance of a building permit for the Improvements unless the Construction Plans are in conformity with this Agreement, and all local, state and federal regulations. The HRA shall, within 25 days of receipt of Construction Plans submitted in application for a building permit, review such Construction Plans to determine whether the foregoing requirements have been met. If the HRA determines such Construction Plans to be deficient, it shall notify the Developer in writing stating the deficiencies and the steps necessary for correction. Issuance of the building permit by the City with the approval of the HRA shall be a conclusive determination that the Construction 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 December 31, 2015[; provided, however, that if the Developer is unable to obtain financing for the Improvements in 2014, the Executive Director of the HRA may extend the deadline for completion of the Improvements to December 31, 2016]. All construction shall be in conformity with the approved Construction Plans. Periodically during construction the Developer shall make reports in such detail as may reasonably be requested by the HRA concerning the actual progress of construction. If at any time prior to completion of construction the HRA has cause to believe that the Developer will be unable to complete construction of the Improvements in the time permitted by this Section 4.3, it may notify the Developer and demand assurances from the Developer regarding the Developer's construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of any of the remedies specified in Section 8.2 of this Agreement. Section 4.4 Certificate of Completion. After notification by the Developer of completion of construction of the Improvements, the HRA shall inspect the construction to determine whether the Improvements have been completed in accordance with the Construction Plans and the terms of this Agreement, including the date of the completion thereof. In the event that the HRA is satisfied with the construction, the HRA shall furnish the Developer with a Certificate of Completion in the 6 �-/� form attached hereto as Exhibit C. 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 Developer to construct the Improvements. The certification provided for in this Section 4.4 shall be in recordable form. If the HRA shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the HRA shall within 15 days of such notification provide the Developer with a written statement, indicating in adequate detail in what respects the Developer has failed to complete the Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the HRA, for the Developer 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. INSURANCE Section 5.1 Insurance. The Developer will provide and maintain or cause to be provided and maintained at all times during the process of constructing the Improvements and, from time to time at the request of the HRA, furnish the HRA with proof of payment of premiums on: (a) Builder's risk insurance, written on the so-called"Builder's Risk-- Completed Value Basis," in an amount equal to 100% of the insurable value of the Improvements at the date of completion, and with coverage available in non-reporting form on the so-called "all risk" form of policy; (b) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner's Contractor's Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used); and (c) Workers' compensation insurance, with statutory coverage. The policies of insurance required pursuant to clauses (a) and(b) above shall be in form and content satisfactory to the HRA and shall be placed with financially sound and reputable insurers licensed to transact business in Minnesota. The policy of insurance delivered pursuant to clause(a) above shall contain an agreement of the insurer to give not less than thirty(30) days advance notice to the HRA in the event of cancellation of such policy or change affecting the coverage thereunder. 7 , ��/�3 ARTICLE VL FINANCING Section 6.1 Financin�. At least 20 days prior to the Closing, the Developer shall submit to the HRA evidence of financing for the Improvements in compliance with the provisions of Section 2.1(b) of this Agreement. If the HRA finds that the financing is adequate in amount to provide for the construction of the Improvements, the HRA shall notify the Developer of its approval. If the HRA rejects the evidence of financing as inadequate, the Developer shall have 30 days or such additional period of time as the Developer may reasonably require from the date of such notification to submit evidence of financing satisfactory to the HRA. If the Developer fails to submit such evidence or fails to use due diligence in pursuing financing, the HRA may terminate this Agreement and both parties shall be released from any further obligation or liability hereunder, except for the HRA's remedies pursuant to Section 4.5 of this Agreement. Closing shall not take place until the Developer has provided the HRA with acceptable evidence of financing for construction of the Improvements. Section 6.2 Limitation Unon Encumbrance of Propertv. Prior to the issuance of the Certificate of Completion, neither the Developer nor any successor in interest to the Property or any � part thereof shall engage in any financing or any other transaction creating any Mortgage or other encumbrance or lien upon the Property, whether by express agreement or operation of law, or suffer any encumbrance of lien to be made on or attached to the Property other than the liens or encumbrances attached for the purposes of obtaining funds to the extent necessary for making the Improvements without the prior written approval of the HRA. The HRA shall not approve any Mortgage which does not contain terms which conform to the terms of this Article VI and Section 8.2 of this Agreement. Section 6.3 Subordination. In order to facilitate obtaining financing for the construction of the Improvements by the Developer, the HRA may, in its sole and exclusive discretion, agree to modify this Agreement in the manner and to the extent it deems reasonable, upon request by the financial institution and the Developer. ARTICLE VII. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 7.1 Reqresentation as to Redevelopment. The Developer 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 Developer further recognizes that, in view of the importance of the Development to the general welfare of Richfield and the substantial financing and other public aids that have been made available by the HRA for the purpose of making the Development possible, the qualification and identity of the Developer are of particular concern to the HRA. The Developer further recognizes that it is because of such qualifications and identity that the HRA is entering into this Agreement, and, in so doing, is further willing to rely on the 8 �/L/ representations and undertakings of the Developer for the faithful performance of all undertakings and covenants agreed by the Developer to be performed. Section 7.2 Prohibition Against Transfer of Pronertv and Assi�nment of Agreement. For the reasons set out in Section 7.1 of this Agreement, the Developer represents and agrees that prior to the issuance of the Certificate of Completion by the HRA: (a) Except only by way of security for, and only for the purpose of obtaining financing necessary to enable the Developer 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 Developer, except as so authorized, has not made or created, and that it will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the HRA; and � (b) The HRA shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such approval under this Section 7.2 that: (i) Any proposed transferee shall have the qualifications and financial responsibility, as determined by the HRA, necessary and adequate to fulfill the obligations undertaken in this , Agreement by the Developer or, in the event the transfer is of or relates to part of the � Property, such obligations to the extent that they relate to such part, (ii) any proposed transferee, by instrument in writing satisfactory to the HRA and in form recordable among the land records, shall for itself and its successor and assigns, and specifically for the benefit of the HRA, have expressly assumed all of the obligations of the Developer under this Agreement and agreed to be subject to such obligations, restrictions and conditions or, in the event the transfer is of, or relates to part of the Property, such obligations, conditions, and restrictions to the extent that they relate to such part; provided, that the effect that any transferee of, or any other successor in interest whatsoever to, the Property or any part thereof, shall, for whatever reason, not have assumed such obligations or agree to do so, shall not, unless and only to the extent otherwise specifically provided in the Agreement or agreed to in writing by the HRA, relieve or except such transferee or successor from such obligations, conditions, or restrictions, or deprive or limit the HRA of or with respect to any rights or remedies or controls with respect to the Property of the construction of the Improvements; it being the intent of this Section 7.2, together with other provisions of this Agreement, that to the fullest extent permitted by law and equity and excepting only in the manner and to the extent specifically provided otherwise in the Agreement no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the HRA, or any rights or remedies or controls provided in or resulting from this Agreement with respect to the Property and the construction of the Improvements that the HRA would have had, had there been no such transfer or change, and 9 J� /�' (iii) There shall be submitted to the HRA for review all instruments and other legal documents involved in effecting transfers described herein, and if approved by the HRA, its approval shall be indicated to the Developer in writing. ' In the absence of specific written agreement by the HRA to the contrary, no such transfer or approval by the HRA thereof shall be deemed to relieve the Developer from any of its obligations with respect thereto. The sale of the Development to a Qualified Buyer shall not be deemed to be a transfer within the meaning of this Section 7.2. Section 7.3 Approvals. Any approval required to be given by the HRA under this Article VII may be denied only in the event that the HRA reasonably determines that the ability of the Developer to perform its obligations under this Agreement will be materially impaired by the action for which approval is sought. ARTICLE VIIL EVENTS OF DEFAULT Section 8.1 Events of Default Defined. The following shall be deemed Events of Default under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides, any one or more of the following events: (a) Failure by the Developer to pay when due the payments required to be paid or secured under any provision of this Agreement; (b) Failure by the Developer to complete the Improvements by December 31, 2015, absent any Unavoidable Delay; (c) Failure by the Developer to observe and substantially perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder, including the time for such performance; � (d) Failure by the Developer to close with a Qualified Buyer within 180 days of completion or after that time as agreed upon by the parties. (e) If the Developer shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Property; (� If the Developer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order or decree appointing, without the consent of the Developer, a receiver of the Developer or of the whole or substantially all of its property, or approve a petition filed against the Developer seeking reorganization or arrangement of the Developer 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 10 ��> 0 /f� (g) If the Development is in default under any Mortgage and has not entered into a work-out I agreement with the Holder of the Mortgage. I Section 8.2 Remedies on Default. Whenever any Event of Default occurs, the HRA may, in addition to any other remedies or rights given the HRA under this Agreement, take any one or more of the following actions following written notice by the HRA to the Developer as provided in Section 9.4 of this Agreement: (a) suspend its performance under this Agreement until it receives assurances from the Developer, deemed reasonably adequate by the HRA, that the Developer will cure its default and continue its performance under this Agreement; (b) cancel or rescind this Agreement; (c) withhold the Certificate of Completion; or (d) take whatever action at law or in equity may appear necessary or desirable to the HRA to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement; provided, however, that any exercise by the HRA of its rights or remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights or interest provided in this Agreement for the protection of the Holders of a Mortgage; and provided further that should any Holder succeed by foreclosure of the Mortgage or deed in lieu thereof to the Developer's interest in the Property, it shall, notwithstanding the foregoing, be obligated to perform the following obligations of the Developer only to the extent that the same have not therefore been performed by the Developer: Sections 3.3 through 3.7; Sections 4.1 through 4.5; Sections 5.1. Said Holder, upon foreclosure or taking of a deed in lieu, shall have no obligations pursuant to this Agreement other than as specifically set forth in the foregoing sentence. 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 remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the HRA or the Developer 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 deemed to waive any other concurrent, previous or subsequent Event of Default. 11 � � � � ARTICLE IX. ADDITIONAL PROVISIONS Section 9.1 Conflict of Interests; Renresentatives Not Individuallv Liable. No HRA officer who is authorized to take part in any manner in making this Agreement in his or her official capacity shall voluntarily have a personal financial interest in this Agreement or benefit financially there from. No member, official, or employee of the HRA shall be personally liable to the Developer, or any successor in interest, for any Event of Default by the HRA or for any amount which may become due to the Developer 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 Developer as though fully set forth herein. Section 9.3 Notice of Status and Conformance. At such time as all of the provisions of this Agreement have been fully performed by the Developer, the HRA, upon not less than ten days prior written notice by the Developer, agrees to execute, acknowledge and deliver, without charge to the Developer or to any person designated by the Developer, a statement in writing in recordable form certifying the extent to which this Agreement has been performed and the obligations hereunder satisfied. Section 9.4 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt requested or delivered personally: (a) As to the HRA: Richfield HRA Executive Director 6700 Portland Avenue South Richfield, MN 55423 (b) As to the Developer: Twin Cities Habitat For Humanity(TCHFH) ATTN: Chad Dipman 3001 4th Street SE Minneapolis, MN 55414 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 9.4. 12 �'i� Section 9.5 Provisions Not Merged With Deed. None of the provisions of this Agreement is intended to or shall be merged by reason of any deed transferring any interest in the Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 9.6. Counterparts. This Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. Section 9.7. Extensions. Any extension to the Closing Date and/or extension of the completion date of the Improvements set forth in Section 4.3 that exceeds 6 months from the�date agreed to in Section 3.4 and 4.3,respectively, must be approved by the HRA Board. HRA staff is authorized to extend the Closing Date to a date less than 6 months from the Closing Date agreed to in Section 3.4 and extend the completion date of the Improvements to a date less than 6 months from the completion date set forth in Section 4.3. 13 � �� IN WITNESS WHEREOF, the HRA has caused this Agreement to be duly executed in its ', name and behalf and its seal to be hereunto duly affixed and the Developer has caused this ' Agreement to be duly executed as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA By Its Chairperson By Its Executive Director STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2014, by Suzanne M. Sandahl,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 ) The foregoing instrument was acknowledged before me this day of , 2014, by Steven L. Devich, the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. Notary Public � -�� TWIN CITIES HABITAT FOR HUMANITY By: Its: STATE OF MINNESOTA ) ) SS COUNTY OF ) � The foregoing instrument was acknowledged before me this day of � 2014, by , the of Twin Cities Habitat For Humanity, a corporation under the laws of Minnesota, on behalf of the corporation. Notary Public �� / EXHIBIT A LIST OF CONSTRUCTION PLAN DOCUMENTS • Contract for Development, fully executed • Concept Plans • Site Plan 1 �� EXHIBIT B FORM OF QUIT CLAIM DEED Quit Claim Deed STATE DEED TAX DUE HEREON: $ Date: FOR VALUABLE CONSIDERATION, Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, Grantor, hereby conveys and quit claims to Twin Cities Habitat for Humanity, a non-profit corporation under the laws of the State of Minnesota, Grantee, real property in Hennepin County, Minnesota, described as follows: 1 Lot 9, Block 1, Nokomis Gardens Rearrangement of Blocks One (1), Two (2), Three (3), Four (4) and Five (5), Girard Parkview, Hennepin County, Minnesota, according to the map or plat thereof on file or of record in the office of the Hennepin County Recorder. This deed is subject to the terms and provisions of that certain Contract for Private Development between Grantor and Grantee, dated , 20_, recorded , 20_, in the office of the Hennepin County Recorder as Document No. (if more space is needed, continue on back) together with all hereditaments and appurtenances. A well disclosure certificate accompanies this document. I I HOUSING AND REDEVELOPMEIVT AUTHORITY '� IN AND FOR THE CITY OF RICHFIELD ' Affix Deed Tax Stamp Here By Its Chairperson By Its Executive Director 2 �� STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN � I The foregoing was acknowledged before me this day of , 20_, by Suzanne Sandahl, the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the corporation, Grantor. NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAK) SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this day of , 20_, by Steven L. Devich, the Executive Director, of Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the corporation, Grantor. SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAK) Check here if part or all of the land is Registered(Torrens) ❑ Tax Statements for the real property described in this instrument should be sent to (include name and address of Grantee): Twin Cities Habitat for Humanity 3001 4th Street SE Minneapolis, MN 55414 This instrument drafted by: Kennedy& Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 3 -J .,� / EXHIBIT C FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that , has fully and completely complied with its obligations under Article IV of that document entitled "Contract for Private Development", between the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota and dated , filed as Document No. with respect to the cdnstruction of the approved construction plans at , legally described as and is released and forever discharged from its obligations to construct under such above-referenced Article. DATED: 'I THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND I FOR THE CITY RICHFIELD By Its Chairperson By Its Executive Director I STATE OF MINNESOTA ) )SS COUNTY OF HENNEPiN ) The foregoing instrument was acknowledged before me this day of , 20_, by the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota on behalf of the public body corporate and politic. Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 20_, by Steven L. Devich, the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. 4 ��c�.�� Notary Public This instrument.was drafted by: Richfield Housing and Redevelopment Authority 6700 Portland Ave S Richfield, MN 55423 II�I 5 �� CONTRACT FOR DEVELOPMENT Between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA and TWIN CITIES HABITAT FOR HUMANITY at 6336 15th AVENUE SOUTH,RICHFIELD This Instrument Drafted by: The Housing and Redevelopment Authority in and for the City of Rich�eld 6700 Portland Avenue South Richfield,Minnesota 55423 Telephone: (612)861-9760 5a� CONTRACT FOR DEVELOPMENT THIS CONTRACT FOR DEVELOPMENT (Agreement), made and entered into as of this of , 2014, by and between the Housing and Redevelopment Authority in and for the City of Richfield, a body corporate and politic under the laws of the State of Minnesota, having its principal office at 6700 Portland Avenue, Richfield, Minnesota (HRA), and Twin Cities Habitat For Humanity, Inc. (TCHFH), a non-profit corporation under the laws of Minnesota, having its principal office at 3001 Fourth Street SE, Minneapolis, MN 55414 (Developer). , WITNESSETH: WHEREAS, the HRA has purchased the property at 6336 15t"Ave South, Richfield, legally described as Lot 10, Block 2, Nokomis Gardens Rearrangement of Blocks One (1), Two (2), Three (3), Four (4) and Five (5), Girard Parkview, Hennepin County (the Property), for the purpose of providing affordable housing in the City; and WHEREAS, the City of Richfield (City) and the HRA have previously created and established a New Home Program, pursuant to the authority granted in Minnesota Statutes, Sections 469.001 through 469.047; and WHEREAS, the Developer has proposed the Improvements, as hereinafter defined, for the Property which the HRA has determined will promote and carry out the objectives for which the Property was purchased; will assist in carrying out the objectives of the New Home Program; and will be in the vital best interests of the City, and the health, safety and welfare of its residents and in accord with the public purposes and provisions of the applicable state and local laws and requirements. NOW, THEREFORE, in consideration of the mutual covenants and obligations of the HRA and the Developer, each party does hereby represent, covenant and agree with the other as follows: ARTICLE I. DEFINITIONS, EXHIBITS, RULES OF INTERPRETATION Section 1.1. Definitions. In this Agreement, the following terms have the meaning given below unless the context clearly requires otherwise: (a) C�. The City of Richfield, Minnesota. (b) Construction Plans. Collectively, the plans, drawings and related documents related to the Improvements, which are listed on Exhibit A. (c) Developer. Twin Cities Habitat For Humanity(TCHFH). 1 �y�� (d) Development. The Property and the Improvements to be constructed thereon according to the Construction Plans approved by the HRA. (e) Event of Default. Event of Default has the meaning given such term in Section 8.1. (� Ho(der. The term "holder" in reference to a Mortgage includes a lender, any insurer or guarantor (other than the Developer) of any obligation or condition secured by such mortgage or deed of trust. (g) Housin� and Redevelopment Authorities Act (HRA Act). Minnesota Statutes Sections 469.001 through 469.047. (h) HRA. The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. (i) Improvements. Each and all of the structures and site improvements constructed or renovated on the Property by the Developer, as specified in the Construction Plans approved by the HRA. (j) Mortgage. The term "mortgage" shall include the mortgages referenced in Article VI of this Agreement and any deed of trust or other instrument creating an encumbrance or lien upon the Property of any part thereof, as security for a loan. (k) New Home Pro�ram. HRA program to encourage development of new housing opportunities for low to moderate income buyers. , (1) Pro er . The real property legal described as: Lot 10, Block 2,Nokomis Gardens Rearrangement of Blocks One(1), Two (2), Three (3), Four(4) i and Five(5), Girard Parkview, Hennepin County, Minnesota, according to the map or plat thereof ' on file or of record in the office of the Hennepin County Recorder. ' having a street address of: 6336 15t"Ave South, Richfield , (m) Qualified Buver. A purchasing family (2 or more person household) whose income ', does not exceed 60 percent of the Twin Cities area median income, is a first time buyer, and is ' qualified to buy the Property for owner occupancy. ��,I (n) Unavoidable Delavs. Delays which are the direct result of strikes, labor troubles, ', fire or other casualty to the Improvements, natural disasters, 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 Developer. I I , 2 I �.� / Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: A. List of Construction Plan Documents B. Form of Quit Claim Deed C. Form of Certificate of Completion Section 1.3 Rules of Interpretation. (a) This Agreement shall be interpreted in accordance with and governed by the laws of the State of Minnesota. (b) The words "herein" and "hereof' and words of similar import, without reference to ', any particular section or subdivision refer to this Agreement as a whole rather than any particular 'I 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 UNDERTAHINGS Section 2.1 Bv the Develouer. The Developer makes the following representations and warranties as the basis for undertakings on its part herein contained: (a) The Developer has the legal authority and power to enter into this Agreement, and has duly authorized the execution, delivery and performance of this Agreement; and the individual(s) who execute this Agreement on behalf of the Developer have the power and authority to bind the Developer; (b) The Developer has the necessary equity capital or will obtain commitments for financing necessary for construction of the Improvements; (c) The Developer will construct the Improvements in accordance with the terms of this Agreement,the Construction Plans, and all local, state and federal laws and regulations; (d) The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws and regulations which must be obtained or met before the Improvements may be constructed; and 3 � � �� (e) The plans for the Improvements have been prepared by a qualified draftsperson or architect. Section 2.2 Bv the HRA. The HRA makes the following representations as the basis for the undertaking on its part herein contained: (a) The HRA is authorized by law to enter into this Agreement, to carry out its obligations hereunder, and the individuals who execute this Agreement on behalf of the HRA have the power and authority to bind the HRA; and (b) The HRA will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Developer and will cooperate with the efforts of Developer to secure the granting of any permit, license, or other approval required to allow the construction of the Improvements; provided, however, that nothing contained in this subparagraph 2.2(b) shall be construed to limit in any way the reasonable and legitimate exercise of the HRA's discretion considering any submittal or application. ARTICLE III. ACQUISITION OF PROPERTY; CONVEYANCE TO DEVELOPER Section 3.1 Sale of Propertv to Developer. The HRA is the fee owner of the Prbperty. The HRA agrees to sell the Property to the Developer and the Developer agrees to purchase the Property from the HRA in an "as is" condition. The HRA agrees to convey the Property to the Developer by Quit Claim Deed in the general form of Exhibit B. The purchase price for the Property will be $25,000. Section 3.2 Title and Examination. As soon as reasonably possible after execution of this Agreement by both parties, • (a) HRA shall surrender any abstract of title and a copy of any owner's title insurance policy for the property, if in HRA's possession or control, to Developer or to Developer's designated title service provider; and (b) Developer shall obtain the title evidence determined necessary or desirable by Developer or Developer's lender, including but not limited to title searches, title examinations, abstracting, a title insurance commitment or an attorney's title opinion, at Developer's selection and cost, and provide a copy to the HRA. The Developer shall have 20 days from the date it receives such title evidence to raise any objections to title it may have. Objections not made within such time will be deemed waived. The HRA shall have 90 days from the date of such objection to affect a cure; provided, however,that the HRA shall have no obligation to cure any objections, and may inform Buyer of such. The Buyer may then elect to close notwithstanding the uncured objections or declare this Agreement null and void, and the parties will thereby be released from any further obligation hereunder. , 4 �� - �/ Section 3.3 Well Disclosure. Seller does not know of any wells on the property. Section 3.4 Closing. Closing on the Property will take place on or before November 30, 2014, or such other date as may be agreed to by the parties in writing. At Closing, the Developer will provide the HRA with the purchase price of the property. If closing has not occurred by November 30, 2014, either party may terminate this Agreement[; provided, however, that if the Developer is unable to obtain financing for the Improvements in 2014,the Executive Director of the HRA may extend the deadline for Closing to on or before November 30, 2015]. Section 3.5. Closing Costs. The Developer will pay: (a)the closing fees charged by its title insurance company or other closing agent, if any, utilized to close the transaction for Developer; and (b) the recording fees for the Contract for Private Development and the deed transferring title to the Developer. The HRA will pay all other fees normally paid by sellers, including: any transfer taxes, and any fees and charges related to the filing of any instrument required to make title marketable. Each party shall pay its own attorney fees. Section 3.6. Sewer and Water. HRA warrants that city water is available at the lot line and city sewer is available at the curb. Section 3.7. ISTS Disclosure. HRA (is) (is not) aware of any individual sewage treatment system on the property. Developer is responsible for all costs of removing any individual sewage treatment system that may be discovered on the Property. Section 3.8. Taxes and Special Assessment. Real estate taxes and installments of special assessments will be prorated between the HRA and Developer as of the date of closing. Section 3.9 Soil Conditions and Hazardous Wastes. The Developer acknowledges that the HRA makes no representations or warranties as to the conditions of the soils on the Property, its fitness for construction of the Improvements or any other purpose for which the Developer may make use of the Property, or regarding the presence of hazardous wastes,pollution or contamination on the Property. The HRA will allow reasonable access to the Property for the Developer to conduct such tests regarding soil conditions and hazardous wastes as the Developer may desire. Permission to enter the Property to conduct such tests must be given in writing under the terms and conditions established by the HRA. Section 3.10 Survev. The HRA will allow reasonable access to the Property for the Developer to conduct a survey. Permission to enter the Property to conduct such tests must be given in writing under the terms and conditions established by the HRA. Section 3.11 Trees. All healthy trees will be saved and protected by the Developer during construction, to the extent possible, except those that specifically interfere with the construction of the Improvements. Trees requested to be removed must be identified by type on the site plan provided by the Developer. Section 3.12 Sale to Qualified Buver; Covenant on Use. The Developer agrees to convey the Property and Improvements to a Qualified Buyer within 180 days of issuance of a Certificate of 5 S�. ��- Occupancy or after that time as agreed upon by the parties. The Developer must obtain the HRA's prior approval of the terms and conditions of the purchase agreement with the Qualified Buyer, and the agreement terms and conditions must be consistent with a housing services agreement to be executed by the HRA and Qualified Buyer. This Agreement constitutes a covenant on the part of ' the Developer, its successors and assigns, to use the Property and Improvements for owner- occupied, single-family residential purposes as permitted by the City. ARTICLE IV. CONSTRUCTION OF IMPROVEMENTS Section 4.1. Construction of Imnrovements. The Developer shall construct the Improvements on the Property at the Developer's cost in accordance with the Construction Plans, and shall maintain, preserve and keep the Improvements in good repair and condition until sale of the Property to a Qualified Buyer. Section 4.2. Building Plans. The Developer agrees that the City of Richfield building official may withhold issuance of a building permit for the Improvements unless the Construction Plans are in conformity with this Agreement, and all local, state and federal regulations. The HRA shall, within 25 days of receipt of Construction Plans submitted in application for a building permit, review such Construction Plans to determine whether the foregoing requirements have been met. If the HRA determines such Construction Plans to be deficient, it shall notify the Developer in writing stating the deficiencies and the steps necessary for correction. Issuance of the building permit by the City with the approval of the HRA shall be a conclusive determination that the Construction 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 December 31, 2015[; provided, however, that if the Developer is unable to obtain financing for the Improvements in 2014,the Executive Director of the HRA may extend the deadline for completion of the Improvements to December 31, 2016]. All construction shall be in conformity with the approved Construction Plans. Periodically during construction the Developer shall make reports in such detail as may reasonably be requested by the HRA concerning the actual progress of construction. If at any time prior to completion of construction the HRA has cause to believe that the Developer will be unable to complete construction of the Improvements in the time permitted by this Section 4.3, it may notify the Developer and demand assurances from the Developer regarding the Developer's construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of any of the remedies specified in Section 8.2 of this Agreement. Section 4.4 Certificate of Completion. After notification by the Developer of completion of construction of the Improvements, the HRA shall inspect the construction to determine whether the Improvements have been completed in accordance with the Construction Plans and the terms of this Agreement, including the date of the completion thereof. In the event that the HRA is satisfied with the construction, the HRA shall furnish the Developer with a Certificate of Completion in the 6 ��_` �.,� form attached hereto as Exhibit C. 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 Developer to construct the Improvements. The certification provided for in this Section 4.4 shall be in recordable form. If the HRA shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the HRA shall within 15 days of such notification provide the Developer with a written statement, indicating in adequate detail in what respects the Developer has failed to complete the Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the HRA, for the Developer 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. INSURANCE Section 5.1 Insurance. The Developer will provide and maintain or cause to be provided and maintained at all times during the process of constructing the Improvements and, from time to time at the request of the HRA, furnish the HRA with proof of payment of premiums on: (a) Builder's risk insurance, written on the so-called "Builder's Risk-- Completed Value Basis," in an amount equal to 100% of the insurable value of the Improvements at the date of completion, and with coverage available in non-reporting form on the so-called "all risk" form of policy; (b) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance)together with an Owner's Contractor's Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used); and (c) Workers' compensation insurance, with statutory coverage. The policies of insurance required pursuant to clauses (a) and (b) above shall be in form and content satisfactory to the HRA and shall be placed with financially sound and reputable insurers licensed to transact business in Minnesota. The policy of insurance delivered pursuant to clause (a) above shall contain an agreement of the insurer to give not less than thirty(30) days advance notice to the HRA in the event of cancellation of such policy or change affecting the coverage thereunder. 7 �� ' N� � ✓ ARTICLE VI. FINANCING I Section 6.1 Financin�. At least 20 days prior to the Closing, the Developer shall submit to the HRA evidence of financing for the Improvements in compliance with the provisions of Section 2.1(b) of this Agreement. If the HRA finds that the financing is adequate in amount to provide for the construction of the Improvements,the HRA shall notify the Developer of its approval. If the HRA rejects the evidence of financing as inadequate, the Developer shall have 30 days or such additional period of time as the Developer may reasonably require from the date of such notification to submit evidence of financing satisfactory to the HRA. If the Developer fails to submit such evidence or fails to use due diligence in pursuing financing, the HRA may terminate this Agreement and both parties shall be released from any further obligation or liability hereunder, except for the HRA's remedies pursuant to Section 4.5 of this Agreement. Closing shall not take place until the Developer has provided the HRA with acceptable evidence. of financing for construction of the Improvements. Section 6.2 Limitation Upon Encumbrance of Propertv. Prior to the issuance of the Certificate of Completion, neither the Developer nor any successor in interest to the Property or any part thereof shall engage in any financing or any other transaction creating any Mortgage or other encumbrance or lien upon the Property, whether by express agreement or operation of law, or suffer any encumbrance of lien to be made on or attached to the Property other than the liens or encumbrances attached for the purposes of obtaining funds to the extent necessary for making the Improvements without the prior written approval of the HRA. The HRA shall not approve any Mortgage which does not contain terms which conform to the terms of this Article VI and Section 8.2 of this Agreement. Section 6.3 Subordination. In order to facilitate obtaining financing for the construction of the Improvements by the Developer, the HRA may, in its sole and exclusive discretion, agree to modify this Agreement in the manner and to the extent it deems reasonable, upon request by the financial institution and the Developer. ARTICLE VII. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 7.1 Renresentation as to Redeveloument. The Developer 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 Developer further recognizes that, in view of the importance of the Development to the general welfare of Richfield and the substantial financing and other public aids that have been made available by the HRA for the purpose of making the Development possible, the qualification and identity of the Developer are of particular concern to the HRA. The Developer further recognizes that it is because of such qualifications and identity that the HRA is entering into this Agreement, and, in so doing, is further willing to rely on the 8 <:: _��. representations and undertakings of the Developer for the faithful performance of all undertakings and covenants agreed by the Developer to be performed. Section 7.2 Prohibition Against Transfer of Propertv and Assignment of Agreement. For the reasons set out in Section 7.1 of this Agreement, the Developer represents and agrees that prior to the issuance of the Certificate of Completion by the HRA: (a) Except only by way of security for, and only for the purpose of obtaining financing �' necessary to enable the Developer or any successor in interest to the Property, or any part thereof, to perfortn its obligations with respect to the Development under this Agreement, and any other purpose authorized by this Agreement, the Developer, except as so authorized, has not made or created, and that it will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the HRA; and (b) The HRA shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such approval under this Section 7.2 that: (i) Any proposed transferee shall have the qualifications and financial responsibility, as determined by the HRA, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer or, in the event the transfer is of or relates to part of the Property, such obligations to the extent that they relate to such part, (ii) any proposed transferee, by instrument in writing satisfactory to the HRA and in form recordable among the land records, shall for itself and its successor and assigns, and specifically for the benefit of the HRA, have expressly assumed all of the obligations of the Developer under this Agreement and agreed to be subject to such obligations, restrictions and conditions or, in the event the transfer is of, or relates to part of the Property, such obligations, conditions, and restrictions to the extent that they relate to such part; provided, that the effect that any transferee of, or any other successor in interest whatsoever to, the Property or any part thereof, shall, for whatever reason, not have assumed such obligations or agree to do so, shall not, unless and only to the extent otherwise specifically provided in the Agreement or agreed to in writing by the HRA, relieve or except such transferee or successor from such obligations, conditians, or restrictions, or deprive or limit the HRA of or with respect to any rights or remedies or controls with respect to the Property of the construction of the Improvements; it being the intent of this Section 7.2, together with other provisions of this Agreement, that to the fullest extent permitted by law and equity and excepting only in the manner and to the extent specifically provided otherwise in the Agreement no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the HRA, or any rights or remedies or controls provided in or resulting from this Agreement with respect to the Property and the construction of the Improvements that the HRA would have had, had there been no such transfer or change, and 9 - � `�`� (iii) There shall be submitted to the HRA for review all instruments and other legal documents involved in effecting transfers described herein, and if approved by the HRA, its approval shall be indicated to the Developer in writing. In the absence of specific written agreement by the HRA to the contrary, no such transfer or approval by the HRA thereof shall be deemed to relieve the Developer from any of its obligations with respect thereto. The sale of the Development to a Qualified Buyer shall not be deemed to be a transfer within the meaning of this Section 7.2. Section 7.3 Approvals. Any approval required to be given by the HRA under this Article VII may be denied only in the event that the HRA reasonably determines that the ability of the Developer to perform its obligations under this Agreement will be materially impaired by the action for which approval is sought. ARTICLE VIII. EVENTS OF DEFAULT Section 8.1 Events of Default Defined. The following shall be deemed Events of Default under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides, any one or more of the following events: (a) Failure by the Developer to pay when due the payments required to be paid or secured under any provision of this Agreement; (b) Failure by the Developer to complete the Improvements by December 31, 2015, absent any Unavoidable Delay; (c) Failure by the Developer to observe and substantially perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder, including the time for such performance; (d) Failure by the Developer to close with a Qualified Buyer within 180 days of completion or after that time as agreed upon by the parties. (e) If the Developer shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Property; (� If the Developer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order or decree appointing, without the consent of the Developer, a receiver of the Developer or of the whole or substantially all of its property, or approve a petition filed against the Developer seeking reorganization or arrangement of the Developer 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 10 �� T� (g) If the Development is in default under any Mortgage and has not entered into a work-out agreement with the Holder of the Mortgage. , Section 8.2 Remedies on Default. Whenever any Event of Default occurs, the HRA may, i in addition to any other remedies or rights given the HRA under this Agreement, take any one or ' more of the following actions following written notice by the HRA to the Developer as provided in Section 9.4 of this Agreement: (a) suspend its performance under this Agreement until it receives assurances from the Developer, deemed reasonably adequate by the HRA, that the Developer will cure its default and continue its performance under this Agreement; (b) cancel or rescind this Agreement; (c) withhold the Certificate of Completion; or (d) take whatever action at law or in equity may appear necessary or desirable to the HRA to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement; provided, however, that any exercise by the HRA of its rights or remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights or interest provided in this Agreement for the protection of the Holders of a Mortgage; and provided further that should any Holder succeed by foreclosure of the Mortgage or deed in lieu thereof to the Developer's interest in the Property, it shall, notwithstanding the foregoing, be obligated to perform the following obligations of the Developer only to the extent that the same have not therefore been performed by the Developer: Sections 3.3 through 3.7; Sections 4.1 through 4.5; Sections 5.1. Said Holder, upon foreclosure or taking of a deed in lieu, shall have no obligations pursuant to this Agreement other than as specifically set forth in the foregoing sentence. 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 remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the HRA or the Developer 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 deemed to waive any other concurrent,previous or subsequent Event of Default. 11 r_,� � � � ARTICLE IX. ADDITIONAL PROVISIONS Section 9.1 Conflict of Interests; Representatives Not Individually Liable. No HRA officer who is authorized to take part in any manner in making this Agreement in his or her official capacity shall voluntarily have a personal financial interest in this Agreement or benefit financially there from. No member, official, or employee of the HRA shall be personally liable to the Developer, or any successor in interest, for any Event of Default by the HRA or for any amount which may become due to the Developer 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 Developer as though fully set forth herein. Section 9.3 Notice of Status and Conformance. At such time as all of the provisions of this Agreement have been fully performed by the Developer, the HRA, upon not less than ten days prior written notice by the Developer, agrees to execute, acknowledge and deliver, without charge to the Developer or to any person designated by the Developer, a statement in writing in recordable form certifying the extent to which this Agreement has been performed and the obligations hereunder satisfied. Section 9.4 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by either party to the ', other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt requested or delivered personally: , (a) As to the HRA: � Richfield HRA � Executive Director '', 6700 Portland Avenue South �'�� Richfield, MN 55423 I � (b) As to the Developer: �I Twin Cities Habitat For Humanity(TCHFH) ATTN: Chad Dipman I 3001 4th Street SE Minneapolis, MN 55414 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 9.4. 12 � .,. .�. � Section 9.5 Provisions Not Mer�ed With Deed. None of the provisions of this Agreement is intended to or shall be merged by reason of any deed transferring any interest in the Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 9.6. Counternarts. This Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. , Section 9.7. Extensions. Any extension to the Closing Date and/or extension of the j completion date of the Improvements set forth in Section 4.3 that exceeds 6 months from the date agreed i to in Section 3.4 and 4.3,respectively, must be approved by the HRA Board. I�RA staff is authorized to extend the Closing Date to a date less than 6 months from the Closing Date agreed to in Section 3.4 and extend the completion date of the Improvements to a date less than 6 months from the completion date set forth in Section 4.3. 13 � �� IN WITNESS WHEREOF, the HRA has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Developer has caused this Agreement to be duly executed as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA By Its Chairperson By Its Executive Director STATE OF MINNESOTA ) I ) SS I! COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2014, by Suzanne M. Sandahl, 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 ) The foregoing instrument was acknowledged before me this day of , 2014, by Steven L. Devich, the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. Notary Public � . ��! TWIN CITIES HABITAT FOR HUMANITY By: Its: STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2014, by , the of Twin Cities Habitat For Humanity, a corporation under the laws of , Minnesota, on behalf of the corporation. I, ��I Notary Public � � �f� EXHIBIT A LIST OF CONSTRUCTION PLAN DOCUMENTS • Contract for Development, fully executed • Concept Plans • Site Plan 1 � � �0� EXHIBIT B FORM OF QUIT CLAIM DEED II Quit Claim Deed STATE DEED TAX DUE HEREON: $ � Date: FOR VALUABLE CONSIDERATION, Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, Grantor, hereby conveys and quit claims to Twin Cities Habitat for Humanity, a non-profit corporation under the laws of the State of Minnesota, Grantee, real property in Hennepin County, Minnesota, described as follows: Lot 10, Block 2, Nokomis Gardens Rearrangement of Block One (1), Two (2), Three (3), Four (4) and Five (5), Girard Parkview, Hennepin County, Minnesota, according to the map or plat thereof on file or of record in the office of the Hennepin County Recorder. This deed is subject to the terms and provisions of that certain Contract for Private Development between Grantor and Grantee, dated , 20_,recorded , 20_, in the office of the Hennepin County Recorder as Document No. (if more space is needed, continue on back) together with all hereditaments and appurtenances. A well disclosure certificate accompanies this document. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD Affix Deed Tax Stamp Here By Its Chairperson By Its Executive Director 2 � z ��" STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this day of , 20_, by Suzanne �I Sandahl, the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the corporation, Grantor. NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAK) SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this day of , 20_, by Steven L. Devich, the Executive Director, of Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the corporation, Grantor. SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAIC) Check here if part or all of the land is Registered(Torrens) ❑ Tax Statements for the real property described in this instrument should be sent to (include name and address of Grantee): Twin Cities Habitat for Humanity 3001 4th Street SE Minneapolis, MN 55414 This instrument drafted by: Kennedy& Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 3 � �� EXHIBIT C FORM O�' CERTIFICATE OF COMPLETION The undersigned hereby certifies that , has fully and completely complied with its obligations under Article IV of that document entitled "Contract for Private Development", between the Housing and Redevelopment Authority in and for the City of Richfield, 1Vlinnesota and dated , filed as Document No. with respect to the construction of the approved construction plans at , legally described as and is released and forever discharged from its obligations to construct under such above-referenced Article. DATED: THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY RICHFIELD By Its Chairperson By Its Executive Director I Ii STATE OF MINNESOTA ) I )SS COUNTY OF HENNEPIN ) ', The foregoing instrument was acknowledged before me this day of , ' 20_, by the Chairperson of the Housing and ' Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under ' the laws of the State of Minnesota on behalf of the public body corporate and politic. ' Notary Public , STATE OF MINNESOTA ) ' � SS � COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 20_, by Steven L. Devich, the Executive Director of the Housing and , Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. � � 4 �"`�!� Notary Public This instrument was drafted by: Richfield Housing and Redevelopment Authority 6700 Portland Ave S � Richfield, MN 55423 i 5 � 7 � - y I CONTRACT FOR DEVELOPMENT Between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA and TWIN CITIES HABITAT FOR HUMANITY at 6416 16th AVENUE SOUTH,RICHFIELD This Instrument Drafted by: The Housing and Redevelopment Authority in and for the City of Richfield 6700 Portland Avenue South Rich�eld,Minnesota 55423 Telephone: (612)861-9760 �� CONTRACT FOR DEVELOPMENT THIS CONTRACT FOR DEVELOPMENT (Agreement), made and entered into as of this_of , 2014, by and between the Housing and Redevelopment Authority in and for the City of Richfield, a body corporate and politic under the laws of the State of Minnesota, having its principal office at 6700 Portland Avenue, Richfield, Minnesota (HRA), and Twin Cities Habitat For Humanity, Inc. (TCHFH), a non-profit corporation under the laws of Minnesota, having its principal office at 3001 Fourth Street SE, Minneapolis, MN 55414 (Developer). WITNESSETH: WHEREAS, the HRA has purchased the property at 6416 16t"Ave South, Richfield, legally described as �.t�t 5, I3lta�� 1, RTaI��s �d� � ��e�t of Blcrcks "7, 11, �� IZ, C"iirard �`a��e�vv,.He�e�in Caunty (the Property), for the purpose of providing affordable housing in the City; and WHEREAS, the City of Richfield (City) and the HRA have previously created and established a New Home Program, pursuant to the authority granted in Minnesota Statutes, Sections 469.001 through 469.047; and WHEREAS, the Developer has proposed the Improvements, as hereinafter defined, for the Property which the HRA has determined will promote and carry out the objectives for which the Property was purchased; will assist in carrying out the objectives of the New Home Program; and will be in the vital best interests of the City, and the health, safety and welfare of its residents and in accord with the public purposes and provisions of the applicable state and local laws and requirements. �, NOW, THEREFORE, in consideration of the mutual covenants and obligations of the ' HRA and the Developer, each party does hereby represent, covenant and agree with the other as ' follows: ARTICLE I. DEFINITIONS, EXHIBITS. RULES OF INTERPRETATION Section 1.1. Definitions. In this Agreement, the following terms have the meaning given below unless the context clearly requires otherwise: (a) C�. The City of Richfield, Minnesota. (b) Construction Plans. Collectively, the plans, drawings and related documents related to the Improvements, which are listed on Exhibit A. (c) Developer. Twin Cities Habitat For Humanity(TCHFH). 1 , �� (d) Develonment. The Property and the Improvements to be constructed thereon according to the Construction Plans approved by the HRA. I (e) Event of Default. Event of Default has the meaning given such term in Se.ction 8.1. l (f) Holder. The term "holder" in reference to a Mortgage includes a lender, any insurer or guarantor (other than the Developer) of any obligation or condition secured by such mortgage or deed of trust. (g) Housing and Redeveloument Authorities Act (HRA Act). Minnesota Statutes Sections 469.001 through 469.047. (h) HRA. The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota. (i) Imqrovements. Each and all of the structures and site improvements constructed or renovated on the Property by the Developer, as specified in the Construction Plans approved by the HRA. (j) Mortgage. The term "mortgage" shall include the mortgages referenced in Article VI of this Agreement and any deed of trust or other instrument creating an encumbrance or lien upon the Property of any part thereof, as security for a loan. (k) New Home Pro�ram. HRA program to encourage development of new housing opportunities for low to moderate income buyers. (1) Pro er . The real property legal described as: Lot 5, Block 11,Nokomis Gardens Rearrangement of Blocks 7, 11, and 12, Girard Parkview, Hennepin County, Minnesota, according to the map or plat thereof on file or of record in the office of the Hennepin County Recorder. having a street address o£ 6416 16th Ave South, Richfield (m) Qualified Buver. A purchasing family (2 or more person household) whose income does not exceed 60 percent of the Twin Cities area median income, is a first time buyer, and is qualified to buy the Property for owner occupancy. (n) Unavoidable Delavs. Delays which are the direct result of strikes, labor troubles, fire or other casualty to the Improvements, natural disasters, 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 Developer. 2 S� �� Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a part of this Agreement: A. List of Construction Plan Documents B. Form of Quit Claim Deed C. Form of Certificate 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 'I section or subdivision hereof. 'I 'I (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 UNDERTAHINGS Section 2.1 By the Developer. The Developer makes the following representations and warranties as the basis for undertakings on its part herein contained: (a) The Developer has the legal authority and power to enter into this Agreement, and has duly authorized the execution, delivery and performance of this Agreement; and the individual(s) who execute this Agreement on behalf of the Developer have the power and authority to bind the Developer; (b) The Developer has the necessary equity capital or will obtain commitments for financing necessary for construction of the Improvements; (c) The Developer will construct the Improvements in accordance with the terms of this Agreement, the Construction Plans, and all local, state and federal laws and regulations; (d) The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws and regulations which must be obtained or met before the Improvements may be constructed; and 3 �1 L� - � � (e) The plans for the Improvements have been prepared by a qualified draftsperson or architect. Section 2.2 Bv the HRA. The HRA makes the following representations as the basis for the undertaking on its part herein contained: (a) The HRA is authorized by law to enter into this Agreement, to carry out its obligations hereunder, and the individuals who execute this Agreement on behalf of the HRA have the power and authority to bind the HRA; and (b) The HRA will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Developer and will cooperate with the efforts of Developer to secure the granting of any permit, license, or other approval required to allow the I construction of the Improvements; provided, however, that nothing contained in this subparagraph I 2.2(b) shall be construed to limit in any way the reasonable and legitimate exercise of the HRA's II discretion considering any submittal or application. ARTICLE III. I�� ACQUISITION OF PROPERTY; CONVEYANCE TO DEVELOPER ', Section 3.1 Sale of Pronertv to Develouer. The HRA is the fee owner of the Property. The HRA agrees to sell the Property to the Developer and the Developer agrees to purchase the Property from the HRA in an "as is" condition. The HRA agrees to convey the Property to the Developer by Quit Claim Deed in the general form of Exhibit B. The purchase price for the Property will be $25,000. Section 3.2 Title and Examination. As soon as reasonably possible after execution of this Agreement by both parties, (a) HRA shall surrender any abstract of title and a copy of any owner's title insurance policy for the property, if in HRA's possession or control, to Developer or to Developer's designated title service provider; and (b) Developer shall obtain the title evidence determined necessary or desirable by Developer or Developer's lender, including but not limited to title searches, title examinations, abstracting, a title insurance commitment or an attorney's title opinion, at Developer's selection and cost, and provide a copy to the HRA. The Developer shall have 20 days from the date it receives such title evidence to raise any objections to title it may have. Objections not made within such time will be deemed waived. The HRA shall have 90 days from the date of such objection to affect a cure; provided, however, that the HRA shall have no obligation to cure any objections, and may inform Buyer of such. The Buyer may then elect to close notwithstanding the uncured objections or declare this Agreement null and void, and the parties will thereby be released from any further obligation hereunder. 4 �-�� Section 3.3 Well Disclosure. Seller does not know of any wells on the property. , Section 3.4 Closing. Closing on the Property will take place on or before November 30, 2014, or such other date as may be agreed to by the parties in writing. At Closing, the Developer will provide the HRA with the purchase price of the property. If closing has not occurred by November 30, 2014, either party may terminate this Agreement[; provided, however, that if the Developer is unable to obtain financing for the Improvements in 2014, the Executive Director of the HRA may extend the deadline for Closing to on or before November 30, 2015). Section 3.5. Closin� Costs. The Developer will pay: (a)the closing fees charged by its title insurance company or other closing agent, if any, utilized to close the transaction for Developer; and (b) the recording fees for the Contract for Private Development and the deed transferring title to the Developer. The HRA will pay all other fees normally paid by sellers, including: any transfer taxes, and any fees and charges related to the filing of any instrument required to make title marketable. Each party shall pay its own attorney fees. Section 3.6. Sewer and Water. HRA warrants that city water is available at the lot line and city sewer is available at the curb. Section 3.7. ISTS Disclosure. HRA (is) (is not) aware of any individual sewage treatment system on the property. Developer is responsible for all costs of removing any individual sewage treatment system that may be discovered on the Property. Section 3.8. Taxes and Special Assessment. Real estate taxes and installments of special. assessments will be prorated between the HRA and Developer as of the date of closing. Section 3.9 Soil Conditions and Hazardous Wastes. The Developer acknowledges that the HRA makes no representations or warranties as to the conditions of the soils on the Property, its fitness for construction of the Improvements or any other purpose for which the Developer may make use of the Property, or regarding the presence of hazardous wastes,pollution or contamination on the Property. The HRA will allow reasonable access to the Property for the Developer to conduct such tests regarding soil conditions and hazardous wastes as the Developer may desire. Permission to enter the Property to conduct such tests must be given in writing under the terms and conditions established by the HRA. � Section 3.10 Survev. The HRA will allow reasonable access to the Property for the Developer to conduct a survey: Permission to enter the Property to conduct such tests must be given in writing under the terms and conditions established by the HRA. Section 3.11 Trees. All healthy trees will be saved and protected by the Developer during construction, to the extent possible, except those that specifically interfere with the construction of the Improvements. Trees requested to be removed must be identified by type on the site plan provided by the Developer. Section 3.12 Sale to Oualified Buver; Covenant on Use. The Developer agrees to convey the Property and Improvements to a Qualified Buyer within 180 days of issuance of a Certificate of 5 �' ��t .� �..� � ° ,, Occupancy or after that time as agreed upon by the parties. The Developer must obtain the HRA's prior approval of the terms and conditions of the purchase agreement with the Qualified Buyer, and the agreement terms and conditions must be consistent with a housing services agreement to be executed by the HRA and Qualified Buyer. This Agreement constitutes a covenant on the part of the Developer, its successors and assigns, to use the Property and Improvements for owner- occupied, single-family residential purposes as permitted by the City. ARTICLE IV. � CONSTRUCTION OF IMPROVEMENTS ', Section 4.1. Construction of Imnrovements. The Developer shall construct the I, Improvements on the Property at the Developer's cost in accordance with the Construction Plans, and shall maintain, preserve and keep the Improvements in good repair and condition until sale of the Property to a Qualified Buyer. Section 4.2. Buildin� Plans. The Developer agrees that the City of Richfield building official may withhold issuance of a building permit for the Improvements unless the Construction Plans are in conformity with this Agreement, and all local, state and federal regulations. The HRA shall, within 25 days of receipt of Construction Plans submitted in application for a building permit, review such Construction Plans to determine whether the foregoing requirements have been met. If the HRA determines such Construction Plans to be deficient, it shall notify the Developer in writing stating the deficiencies and the steps necessary for correction. Issuance of the building permit by the City with the approval of the HRA shall be a conclusive determination that the Construction 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 December 31, 2015[; provided, however, that if the Developer is unable to obtain financing for the Improvements in 2014,the Executive Director of the HRA may extend the deadline for completion of the Improvements to December 31, 2016]. All construction shall be in conformity with the approved Construction Plans. Periodically during construction the Developer shall make reports in such detail as may reasonably be requested by the HRA concerning the actual progress of construction. If at any time prior to completion of construction the HRA has cause to believe that the Developer will be unable to complete construction of the Improvements in the time permitted by this Section 4.3, it may notify the Developer and demand assurances from the Developer regarding the Developer's construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of any of the remedies specified in Section 8.2 of this Agreement. Section 4.4 Certificate of Comnletion. After notification by the Developer of completion of construction of the Improvements, the HRA shall inspect the construction to determine whether the Improvements have been completed in accordance with the Construction Plans and the terms of this Agreement, including the date of the completion thereof. In the event that the HRA is satisfied with the construction, the HRA shall furnish the Developer with a Certificate of Completion in the , 6 � �� form attached hereto as Exhibit C. 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 Developer to construct the Improvements. ', i The certification provided for in this Section 4.4 shall be in recordable form. If the HRA shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the HRA shall within 15 days of such notification provide the Developer with a written statement, indicating in adequate detail in what respects the Developer has failed to complete the Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the HRA, for the Developer 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. INSURANCE Section 5.1 Insurance. The Developer will provide and maintain or cause to be provided and maintained at all times during the process of constructing the Improvements and, from time to time at the request of the HRA, furnish the HRA with proof of payment of premiums on: (a) Builder's risk insurance, written on the so-called"Builder's Risk-- Completed Value Basis," in an amount equal to 100% of the insurable value of the Improvements at the date of completion, and with coverage available in non-reporting form on the so-called "all risk" form of policy; (b) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner's Contractor's Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used); and (c) Workers' compensation insurance, with statutory coverage. The policies of insurance required pursuant to clauses (a) and (b) above shall be in form and content satisfactory to the HRA and shall be placed with financially sound and reputable insurers licensed to transact business in Minnesota. The policy of insurance delivered pursuant to clause (a) above shall contain an agreement of the insurer to give not less than thirty(30) days advance notice to the HRA in the event of cancellation of such policy or change affecting the coverage thereunder. 7 � , ��. � ARTICLE VI. FINANCING Section 6.1 Financin�. At least 20 days prior to the Closing, the Developer shall submit to the HRA evidence of financing for the Improvements in compliance with the provisions of Section 2.1(b) of this Agreement. If the HRA finds that the financing is adequate in amount to provide for the construction of the Improvements,the HRA shall notify the Developer of its approval. If the HRA rejects the evidence of financing as inadequate, the Developer shall have 30 days '� or such additional period of time as the Developer may reasonably require from the date of such II notification to submit evidence of financing satisfactory to the HRA. If the Developer fails to submit such evidence or fails to use due diligence in pursuing financing, the HRA may terminate this Agreement and both parties shall be released from any further obligation or liability hereunder, except for the HRA's remedies pursuant to Section 4.5 of this Agreement. Closing shall not take place until the Developer has provided the HRA with acceptable evidence of financing for construction of the Improvements. Section 6.2 Limitation Upon Encumbrance of Pronertv. Prior to the issuance of the Certificate of Completion, neither the Developer nor any successor in interest to the Property or any part thereof shall engage in any financing or any other transaction creating any Mortgage or other encumbrance or lien upon the Property, whether by express agreement or operation of law, or suffer any encumbrance of lien to be made on or attached to the Property other than the liens or encumbrances attached for the purposes of obtaining funds to the extent necessary for making the Improvements without the prior written approval of the HRA. The HRA shall not approve any Mortgage which does not contain terms which conform to the terms of this Article VI and Section 8.2 of this Agreement. Section 6.3 Subordination. In order to facilitate obtaining financing for the construction of the Improvements by the Developer, the HRA may, in its sole and exclusive discretion, agree to modify this Agreement in the manner and to the extent it deems reasonable, upon request by the financial institution and the Developer. ARTICLE VII. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 7.1 _Representation as to Redevelonment. The Developer 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 Developer further recognizes that, in view of the importance of the Development to the general welfare of Richfield and the substantial financing and other public aids that have been made available by the HRA for the purpose of making the Development possible, the qualification and identity of the Developer are of particular concern to the HRA. The Developer further recognizes that it is because of such qualifications and identity that the HRA is entering into this Agreement, and, in so doing, is further willing to rely on the 8 � .`;� representations and undertakings of the Developer for the faithful performance of all undertakings and covenants agreed by the Developer to be performed. Section 7.2 Prohibition A�ainst Transfer of Propertv and Assignment of Agreement. For the reasons set out in Section 7.1 of this Agreement, the Developer represents and agrees that prior to the issuance of the Certificate of Completion by the HRA: (a) Except only by way of security for, and only for the purpose of obtaining financing necessary to enable the Developer 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 Developer, except as so authorized, has not made or created, and that it will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the HRA; and (b) The HRA shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such approval under this Section 7.2 that: (i) Any proposed transferee shall have the qualifications and financial responsibility, as determined by the HRA, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer or, in the event the transfer is of or relates to part of the Property, such obligations to the extent that they relate to such part, (ii) any proposed transferee, by instrument in writing satisfactory to the HRA and in form recordable among the land records, shall for itself and its successor and assigns, and specifically for the benefit of the HRA, have expressly assumed all of the obligations of the Developer under this Agreement and agreed to be subject to such obligations, restrictions and conditions or, in the event the transfer is of, or relates to part of the Property, such obligations, conditions, and restrictions to the extent that they relate to such part; provided, that the effect that any transferee of, or any other successor in interest whatsoever to, the ', Property or any part thereof, shall, for whatever reason, not have assumed such obligations I or agree to do so, shall not, unless and only to the extent otherwise specifically provided in the Agreement or agreed to in writing by the HRA, relieve or except such transferee or successor from such obligations, conditions, or restrictions, or deprive or limit the HRA of or with respect to any rights or remedies or controls with respect to the Property of the construction of the Improvements; it being the intent of this Section 7.2, together with other provisions of this Agreement, that to the fullest extent permitted by law and equity and excepting only in the manner and to the extent specifically provided otherwise in the Agreement no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, whether voluntary or involuntary, shall operate, legally or practically, to deprive or limit the HRA, or any rights or remedies or controls provided in or resulting from this Agreement with respect to the Property and the construction of the Improvements that the HRA would have had, had there been no such transfer or change, and 9 � �� (iii) There shall be submitted to the HRA for review all instruments and other legal documents involved in effecting transfers described herein, and if approved by the HRA, its approval shall be indicated to the Developer in writing. In the absence of specific written agreement by the HRA to the contrary, no such transfer or approval by the HRA thereof shall be deemed to relieve the Developer from any of its obligations with respect thereto. The sale of the Development to a Qualified Buyer shall not be deemed to be a transfer within the meaning of this Section 7.2. Section 7.3 Approvals. Any approval required to be given by the HRA under this Article VII may be denied only in the event that the HRA reasonably determines that the ability of the Developer to perform its obligations under this Agreement will be materially impaired by the action for which approval is sought. ARTICLE VIII. EVENTS OF DEFAULT Section 8.1 Events of Default Defined. The following shall be deemed Events of Default under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides, any one or more of the following events: (a) Failure by the Developer to pay when due the payments required to be paid or secured under any provision of this Agreement; (b) Failure by the Developer to complete the Improvements by December 31, 2015, absent any Unavoidable Delay; (c) Failure by the Developer to observe and substantially perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder, including the time for such performance; (d) Failure by the Developer to close with a Qualified Buyer within 180 days of completion or after that time as agreed upon by the parties. (e) If the Developer shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Property; (� If the Developer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order or decree appointing, without the consent of I the Developer, a receiver of the Developer or of the whole or substantially all of its property, or approve a petition filed against the Developer seeking reorganization or arrangement of the Developer 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 10 �_�� (g) If the Development is in default under any Mortgage and has not entered into a work-out agreement with the Holder of the Mortgage. Section 8.2 Remedies on Default. Whenever any Event of Default occurs, the HRA may, in addition to any other remedies or rights given the HRA under this Agreement, take any one or more of the following actions following written notice by the HRA to the Developer as provided in- Section 9.4 of this Agreement: (a) suspend, its performance under this Agreement until it receives assurances from the Developer, deemed reasonably adequate by the HRA, that the Developer will cure its default and continue its performance under this Agreement; (b) cancel or rescind this Agreement; (c) withhold the Certificate of Completion; or (d) take whatever action at law or in equity may appear necessary or desirable to the HRA to collect any payments due under this Agreement, or to enforce performance and observance of any obligation, agreement, or covenant of the Developer under this Agreement; provided, however, that any exercise by the HRA of its rights or remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights or interest provided in this Agreement for the protection of the Holders of a Mortgage; and provided further that should any Holder succeed by foreclosure of the Mortgage or deed in lieu thereof to the Developer's interest in the Property, it shall, notwithstanding the foregoing, be obligated to perform the following obligations of the Developer only to the extent that the same have not therefore been performed by the Developer: Sections 3.3 through 3.7; Sections 4.1 through 4.5; Sections 5.1. Said Holder, upon foreclosure or taking of a deed in lieu, shall have no obligations pursuant to this Agreement other than as specifically set forth in the foregoing sentence. 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 remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to , time and as often as may be deemed expedient. In order to entitle the HRA or the Developer 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 deemed to waive any other concurrent, previous or subsequent Event of Default. 11 � --�� ARTICLE IX. ADDITIONAL PROVISIONS Section 9.1 Conflict of Interests; Renresentatives Not Individuallv Liable. No HRA �i 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 Developer, or any successor in interest, for any Event of Default by the HRA or for any amount which may become due to the Developer 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 Developer as though fully set forth herein. Section 9.3 Notice of Status and Conformance. At such time as all of the provisions of this Agreement have been fully performed by the Developer, the HRA, upon not less than ten days prior written notice by the Developer, agrees to execute, acknowledge and deliver, without charge to the Developer or to any person designated by the Developer, a statement in writing in recordable form certifying the extent to which this Agreement has been performed and the obligations hereunder satisfied. Section 9.4 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt requested or delivered personally: (a) As to the HRA: Richfield HRA Executive Director 6700 Portland Avenue South Richfield, MN 55423 (b) As to the Developer: Twin Cities Habitat For Humanity(TCHFH) ATTN: Chad Dipman 3001 4th Street SE Minneapolis, MN 55414 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 9.4. 12 �d�� Section 9.5 Provisions Not Mer�ed With Deed. None of the provisions of this Agreement is intended to or shall be merged by reason of any deed transferring any interest in the Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 9.6. Counterparts. This Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. Section 9.7. Extensions. Any extension to the Closing Date and/or extension of the completion date of the Improvements set forth in Section 4.3 that exceeds 6 months from the date agreed to in Section 3.4 and 4.3, respectively, must be approved by the�IRA Board. HRA staff is authorized to extend the Closing Date to a date less than 6 months from the Closing Date agreed to in Section 3.4 and extend the completion date of the Improvements to a date less than 6 months from the completion date set forth in Section 4.3. I � �I 13 �`L� � i IN WITNESS WHEREOF, the HRA has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Developer has caused this Agreement to be duly executed as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA By Its Chairperson By Its Executive Director STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2014, by Suzanne M. Sandahl, 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 ) The foregoing instrument was acknowledged before me this day of , 2014, by Steven L. Devich, the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. Notary Public J ��!.� TWIN CITIES HABITAT FOR HUMANITY By: Its: STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2014, by , the of Twin Cities Habitat For Humanity, a corporation under the laws of Minnesota, on behalf of the corporation. Notary Public �� EXHIBIT A LIST OF CONSTRUCTION PLAN DOCUMENTS • Contract for Development, fully executed • Concept Plans • Site Plan II II I 1 �� . � �u� EXHIBIT B FORM OF QUIT CLAIM DEED Quit Claim Deed �, STATE DEED TAX DUE HEREON: $ ' Date: I, FOR VALUABLE CONSIDERATION, Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, Grantor, hereby conveys and quit claims to Twin Cities Habitat for Humanity, a non-profit corporation under the laws of the State of Minnesota, Grantee, real property in Hennepin County, Minnesota, described as follows: �.� 5, B�:a��l� �1, I'��a�i:� �� e � �� f ��c�� '7, I 1, as�l: IZs Ciirard Parkview, ��nepin Co�t�, Minnesota, according to the map or plat thereof on file or of record in the office of the Hennepin County Recorder. This deed is subject to the terms and provisions of that certain Contract for Private Development between Grantor and Grantee, dated , 20_,recorded , 20_, in the office of the Hennepin County Recorder as Document No. (if more space is needed, continue on back) together with all hereditaments and appurtenances. A well disclosure certificate accompanies this document. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD Affix Deed Tax Stamp Here By Its Chairperson By Its Executive Director 2 f� �� STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this day of , 20_, by Suzanne Sandahl, the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the corporation, Graritor. NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAK) SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this day of , 20_, by Steven L. Devich, the Executive Director, of Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the corporation, Grantor. SIGNA'I'URE OF PERSON TAKING ACKNOWLEDGMENT NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAK) Check here if part or all of the land is Registered(Torrens) ❑ Tax Statements for the real property described in this instrument should be sent to (include name and address of Grantee): Twin Cities Habitat for Humanity 3001 4th Street SE Minneapolis, MN 55414 This instrument drafted by: Kennedy& Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 3 ��,� EXHIBIT C FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that , has fully and , completely complied with its obligations under Article IV of that document entitled "Contract for I Private Development", between the Housing and Redevelopment Authority in and for the City of I Richfield, Minnesota and dated , filed as Document No. with respect to the construction of the approved construction plans at , legally described as and is released and forever discharged from its obligations to construct under such above-referenced Article. DATED: THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY RICHFIELD By Its Chairperson By Its Executive Director I STATE OF MINNESOTA ) )SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of , 20_, by the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota on behalf of the public body corporate and politic: Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 20_, by Steven L. Devich, the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. 4 � � "� Notary Public This instrument was drafted by: Richfield Housing and Redevelopment Authority ' 6700 Portland Ave S ' Richfield, MN 55423 ', � 5 � 1 � A�� CONTRACT FOR DEVELOPMENT 4 Between THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA and TWIN CITIES HABITAT FOR HUMANITY at 642016th AVENUE SOUTH,RICHFIELD This Instrument Drafted by: The Housing and Redevelopment Authority in and for the City of Rich�eld 6700 Portland Avenue South Richfietd,Minnesota 55423 Telephone: (612)861-9760 �- �� CONTRACT FOR DEVELOPMENT THIS CONTRACT FOR DEVELOPMENT (Agreement), made and entered into as of this of , 2014, by and between the Housing and Redevelopment Authority in and for the City of Richfield, a body corporate and politic under the laws of the State of Minnesota, having its principal office at 6700 Portland Avenue, Richfield, Minnesota (HRA), and Twin Cities Habitat For Humanity, Inc. (TCHFH), a non-profit corporation under the laws of Minnesota, having its principal office at 3001 Fourth Street SE, Minneapolis, MN 55414 (Developer). WITNESSETH: WHEREAS, the HRA has purchased the property at 6420 16th Ave South, Richfield, legally described as Lot 6, Block 11, Nokomis Gardens Rearrangement of Blocks 7, 11, and 12, Girard Parkview, Hennepin County (the Property), for the purpose of providing affordable housing in the City; and WHEREAS, the City of Richfield (City) and the HRA have previously created and ', established a New Home Program, pursuant to the authority granted in Minnesota Statutes, Sections ', 469.001 through 469.047; and ' WHEREAS, the Developer has proposed the Improvements, as hereinafter defined, for the Property which the HRA has determined will promote and carry out the objectives for which the Property was purchased; will assist in cariying out the objectives of the New Home Program; and will be in the vital best interests of the City, and the health, safety and welfare of its residents and in accord with the public purposes and provisions of the applicable state and local laws and requirements. NOW, THEREFORE, in consideration of the mutual covenants and obligations of the HRA and the Developer, each parry does hereby represent, covenant and agree with the other as follows: ARTICLE I. DEFINITIONS, EXHIBITS, RULES OF INTERPRETATION Section 1.1. Definitions. In this Agreement, the following terms have the meaning given below unless the context clearly requires otherwise: (a) C�. The City of Richfield, Minnesota. (b) Construction Plans. Collectively, the plans, drawings and related documents related to the Improvements, which are listed on Exhibit A. (c) Developer. Twin Cities Habitat For Humanity(TCHFH). 1 �-�D (d) Development. The Property and the Improvements to be constructed thereon according to the Construction Plans approved by the HRA. (e) Event of Default. Event of Default has the meaning given such term in Section 8.1. (f) Holder. The term "holder" in reference to a Mortgage includes a lender, any insurer or guarantor (other than the Developer) of any obligation or condition secured by such mortgage or deed of trust. (g) Housing and Redevelopment Authorities Act (HRA Act). Minnesota Statutes Sections 469.001 through 469.047. ' � (h) HRA. The Housing and Redevelopment Authority in and for the City of Richfield, � Minnesota. (i) Improvements. Each and all of the structures and site improvements constructed or renovated on the Property by the Developer, as specified in the Construction Plans approved by the HRA. (j) Mortgage. The term "mortgage" shall include the mortgages referenced in Article VI of this Agreement and any deed of trust or other instrument creating an encumbrance or lien upon the Property of any part thereof, as security for a loan. (k) New Home Pro�ram. HRA program to encourage development of new housing opportunities for low to moderate income buyers. (1) Pro er . The real property legal described as: Lot 6, Block 11,Nokomis Gardens Rearrangement of Blocks 7, 11, and 12, Girard Parkview, Hennepin County, Minnesota, according to the map or plat thereof on file or of record in the office of the Hennepin County Recorder. having a street address o£ 6420 16th Ave South, Richfield (m) Qualified Buver. A purchasing family (2 or more person household) whose income does not exceed 60 percent of the Twin Cities area median income, is a first time buyer, and is qualified to buy the Property for owner occupancy. (n) Unavoidable Delavs. Delays which are the direct result of strikes, labor troubles, fire or other casualty to the Improvements, natural disasters, 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 Developer. 2 1 �J '� � '��'.. i Section L2 Exhibits. The following Exhibits are attached to and by reference made a part ' of this Agreement: j A. List of Construction Plan Documents II' B. Form of Quit Claim Deed C. Form of Certificate of Completion �I Section 1.3 Rules of Interpretation. �I (a) This Agreement shall be interpreted in accordance with and governed by the laws of I, the State of Minnesota. I� �'� (b) The words "herein" and "hereof' and words of similar import, without reference to I any particular section or subdivision refer to this Agreement as a whole rather than any particular ,I section or subdivision hereof. I c References herein to any particular section or subdivision hereof are to the section or I�!, � ) subdivision of this Agreement as originally executed. ', (d) Any titles of the several parts, articles and sections of this Agreement are inserted for III convenience and reference only and shall be disregarded in construing or interpreting any of its I provisions. ' ARTICLE IL REPRESENTATIONS AND UNDERTAHINGS Section 2.1 Bv the Developer. The Developer makes the following representations and warranties as the basis for undertakings on its part herein contained: (a) The Developer has the legal authority and power to enter into this Agreement, and has duly authorized the execution, delivery and performance of this Agreement; and the individual(s) who execute this Agreement on behalf of the Developer have the power and authority to bind the Developer; (b) The Developer has the necessary equity capital or will obtain commitments for financing necessary for construction of the Improvements; (c) The Developer will construct the Improvements in accordance with the terms of this Agreement, the Construction Plans, and all local, state and federal laws and regulations; (d) The Developer will obtain, in a timely manner, all required permits, licenses and approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws and regulations which must be obtained or met before the Improvements may be constructed; and 3 S fi�� (e) The plans for the Improvements have been prepared by a qualified draftsperson or architect. Section 2.2 Bv the HRA. The HRA makes the following representations as the basis for the undertaking on its part herein contained: ', � (a) The HRA is authorized by law to enter into this Agreement, to carry out its obligations hereunder, and the individuals who execute this Agreement on behalf of the HRA have the power and authority to bind the HRA; and (b) The HRA will, in a timely manner, subject to all notification requirements, review and act upon all submittals and applications of the Developer and will cooperate with the efforts of Developer to secure the granting of any permit, license, or other approval required to allow the construction of the Improvements; provided, however, that nothing contained in this subparagraph 2.2(b) shall be construed to limit in any way the reasonable and legitimate exercise of the HRA's discretion considering any submittal or application. ARTICLE III. ACQUISITION OF PROPERTY; CONVEYANCE TO DEVELOPER Section 3.1 Sale of Propertv to Develoner. The HRA is the fee owner of the Property. The HRA agrees to sell the Property to the Developer and the Developer agrees to purchase the Property from the HRA in an "as is" condition. The HRA agrees to convey the Property to the Developer by Quit Claim Deed in the general form of Exhibit B. The purchase price for the Property will be $25,000. Section 3.2 Title and Examination. As soon as reasonably possible after execution of this Agreement by both parties, (a) HRA shall surrender any abstract of title and a copy of any owner's title insurance policy for the property, if in HRA's possession or control, to Developer or to Developer's designated title service provider; and (b) Developer shall obtain the title evidence determined necessary or desirable by Developer or Developer's lender, including but not limited to title searches, title examinations, abstracting, a title insurance commitment or an attorney's title opinion, at Developer's selection and cost, and provide a copy to the HRA. The Developer shall have 20 days from the date it receives such title evidence to raise any objections to title it may have. Objections not made within such time will be deemed waived. The HRA shall have 90 days from the date of such objection to affect a cure; provided,however,that the HRA shall have no obligation to cure any objections, and may inform Buyer of such. The Buyer may then elect to close notwithstanding the uncured objections or declare this Agreement null and void, and the parties will thereby be released from any further obligation hereunder. 4 � �`�1� Section 3.3 Well Disclosure. Seller does not know of any wells on the property. Section 3.4 Closin�. Closing on the Property will take place on or before November 30, 2014, or such other date as may be agreed to by the parties in writing. At Closing, the Developer will provide the HRA with the purchase price of the property. If closing has not occurred by November 30, 2014, either party may terminate this Agreement[; provided, however, that if the Developer is unable to obtain financing for the Improvements in 2014, the Executive Director of the j HRA may extend the deadline for Closing to on or before November 30, 2015]. I i Section 3.5. Closing Costs. The Developer will pay: (a)the closing fees charged by its title � insurance company or other closing agent, if any, utilized to close the transaction for Developer; and (b) the recording fees for the Contract for Private Development and the deed transferring title to the Developer. The HRA will pay all other fees normally paid by sellers, including: any transfer taxes, and any fees and charges related to the filing of any instrument required to make title marketable. Each party shall pay its own attorney fees. Section 3.6. Sewer and Water. HRA warrants that city water is available at the lot line and city sewer is available at the curb. Section 3.7. ISTS Disclosure. HRA (is) (is not) aware of any individual sewage treatment system on the property. Developer is responsible for all costs of removing any individual sewage treatment system that may be discovered on the Property. Section 3.8. Taxes and Snecial Assessment. Real estate taxes and installments of special assessments will be prorated between the HRA and Developer as of the date of closing. Section 3.9 Soil Conditions and Hazardous Wastes. The Developer acknowledges that the HRA makes no representations or warranties as to the conditions of the soils on the Property, its fitness for construction of the Improvements or any other purpose for which the Developer may make use of the Property, or regarding the presence of hazardous wastes, pollution or contamination on the Property. The HRA will allow reasonable access to the Property for the Developer to conduct such tests regarding soil conditions and hazardous wastes as the Developer may desire. Permission to enter the Property to conduct such tests must be given in writing under the terms and conditions established by the HRA. Section 3.10 Survev. The HRA will allow reasonable access to the Properry for the Developer to conduct a survey. Permission to enter the Property to conduct such tests must be given in writing under the terms and conditions established by the HRA. Section 3.11 Trees. All healthy trees will be saved and protected by the Developer during construction, to the extent possible, except those that specifically interfere with the construction of the Improvements. Trees requested to be removed must be identified by type on the site plan provided by the Developer. Section 3.12 Sale to Quali�ed Buver; Covenant on Use. The Developer agrees to convey the Property and Improvements to a Qualified Buyer within 180 days of issuance of a Certificate of 5 �,-�� Occupancy or after that time as agreed upon by the parties. The Developer must obtain the HRA's prior approval of the terms and conditions of the purchase agreement with the Qualified Buyer, and the agreement terms and conditions must be consistent with a housing services agreement to be executed by the HRA and Qualified Buyer. This Agreement constitutes a covenant on the part of the Developer, its successors and assigns, to use the Property and Improvements for owner- occupied, single-family residential purposes as permitted by the City. , I ARTICLE IV. CONSTRUCTION OF IMPROVEMENTS Section 4.1. Construction of Imurovements. The Developer shall construct the Improvements on the Properly at the Developer's cost in accordance with the Construction Plans, and shall maintain, preserve and keep the Improvements in good repair and condition until sale of the Property to a Qualified Buyer. Section 4.2. Building Plans. The Developer agrees that the City of Richfield building official may withhold issuance of a building permit for the Improvements unless the Construction Plans are in conformity with this Agreement, and all local, state and federal regulations. The HRA shall, within 25 days of receipt of Construction Plans submitted in application for a building permit, review such Construction Plans to determine whether the foregoing requirements have been met. If the HRA determines such Construction Plans to be deficient, it shall notify the Developer in writing stating the deficiencies and the steps necessary for correction. Issuance of the building permit by the City with the approval of the HRA shall be a conclusive determination that the Construction 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 December 31, 2015[; provided, however, that if the Developer is unable to obtain financing for the Improvements in 2014, the Executive Director of the HRA may extend the deadline for completion of the Improvements to December 31, 2016]. All construction shall be in conformity with the approved Construction Plans. Periodically during construction the Developer shall make reports in such detail as may reasonably be requested by the HRA concerning the actual progress of construction. If at any time prior to completion of construction the HRA has cause to believe that the Developer will be unable to complete construction of the Improvements in the time permitted by this Section 4.3, it may notify the Developer and demand assurances from the Developer regarding the Developer's construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its sole discretion to be inadequate, the HRA may declare an Event of Default and may avail itself of any of the remedies specified in Section 8.2 of this Agreement. Section 4.4 Certificate of Completion. After notification by the Developer of completion of construction of the Improvements, the HRA shall inspect the construction to determine whether the Improvements have been completed in accordance with the Construction Plans and the terms of this Agreement, including the date of the completion thereof. In the event that the HRA is satisfied with the construction, the HRA shall furnish the Developer with a Certificate of Completion in tlie 6 � �� form attached hereto as Exhibit C. 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 Developer to construct the Improvements. The certification provided for in this Section 4.4 shall be in recordable form. If the HRA shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the HRA shall within 15 days of such notification provide the Developer with a written statement, , indicating in adequate detail in what respects the Developer has failed to complete the �, Improvements in accordance with the provisions of this Agreement necessary, in the opinion of the HRA, for the Developer 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. INSURANCE Section 5.1 Insurance. The Developer will provide and maintain or cause to be provided and maintained at all times during the process of constructing the Improvements and, from time to time at the request of the HRA, furnish the HRA with proof of payment of premiums on: (a) Builder's risk insurance, written on the so-called"Builder's Risk -- Completed Value Basis," in an amount equal to 100% of the insurable value of the Improvements at the date of completion, and with coverage available in non-reporting form on the so-called "all risk" form of policy; (b) Comprehensive general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) together with an Owner's Contractor's Policy with limits against bodily injury and property damage of not less than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used); and (c) Workers' compensation insurance, with statutory coverage. The policies of insurance required pursuant to clauses (a) and (b)above shall be in form and content satisfactory to the HRA and shall be placed with financially sound and reputable insurers licensed to transact business in Minnesota. The policy of insurance delivered pursuant to clause(a) above shall contain an agreement of the insurer to give not less than thirty(30) days advance notice to the HRA in the event of cancellation of such policy or change affecting the coverage thereunder. 7 � �� ARTICLE VI. FINANCING Section 6.1 Financing. At least 20 days prior to the Closing, the Developer shall submit to the HRA evidence of financing for the Improvements in compliance with the provisions of Section 2.1(b) of this Agreement. If the HRA finds that the financing is adequate in amount to provide for ', the construction of the Improvements,the HRA shall notify the Developer of its approval. I � If the HRA rejects the evidence of financing as inadequate, the Developer shall have 30 days or such additional period of time as the Developer may reasonably require from the date of such notification to submit evidence of financing satisfactory to the HRA. If the Developer fails to submit such evidence or fails to use due diligence in pursuing financing, the HRA may terminate this Agreement and both parties shall be released from any further obligation or liability hereunder, except for the HRA's remedies pursuant to Section 4.5 of this Agreement. Closing shall not take place until the Developer has provided the HRA with acceptable evidence of financing for construction of the Improvements. Section 6.2 Limitation Upon Encumbrance of Propertv. Prior to the issuance of the Certificate of Completion, neither the Developer nor any successor in interest to the Property or any part thereof shall engage in any financing or any other transaction creating any Mortgage or other encumbrance or lien upon the Property, whether by express agreement or operation of law, or suffer any encumbrance of lien to be made on or attached to the Property other than the liens or encumbrances attached for the purposes of obtaining funds to the extent necessary for making the Improvements without the prior written approval of the HRA. The HRA shall not approve any Mortgage which does not contain terms which conform to the terms of this Article VI and Section 8.2 of this Agreement. Section 6.3 Subordination. In order to facilitate obtaining financing for the construction of the Improvements by the Developer, the HRA may, in its sole and exclusive discretion, agree to modify this Agreement in the manner and to the extent it deems reasonable, upon request by the financial institution and the Developer. ARTICLE VII. PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER Section 7.1 Reqresentation as to Redevelopment. The Developer 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 Developer further recognizes that, in view of the importance of the Development to the general welfare of Richfield and the substantial financing and other public aids that have been made available by the HRA for the purpose of making the Development possible, the qualification and identity of the Developer are of particular concern to the HRA. The Developer further recognizes that it is because of such qualifications and identity that the HRA is entering into this Agreement, and, in so doing, is further willing to rely on the 8 � � °� representations and undertakings of the Developer for the faithful performance of all undertakings and covenants agreed by the Developer to be performed. Section 7.2 Prohibition Against Transfer of Proqertv and Assi�nment of A�reement. For the reasons set out in Section 7.1 of this Agreement, the Developer represents and agrees that prior to the issuance of the Certificate of Completion by the HRA: (a) Except only by way of security for, and only for the purpose of obtaining financing necessary to enable the Developer or any successor in interest to the Property, or any part thereof, to I perform its obligations with respect to the Development under this Agreement, and any other purpose authorized by this Agreement, the Developer, except as so authorized, has not made or created, and that it will not make or create, or suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in respect to this Agreement or the Property or any part thereof or any interest therein, or any contract or agreement to do any of the same, without the prior written approval of the HRA; and (b) The HRA shall be entitled to require, except as otherwise provided in this Agreement, as conditions to any such approval under this Section 7.2 that: (i) Any proposed transferee shall have the qualifications and financial responsibility, as determined by the HRA, necessary and adequate to fulfill the obligations undertaken in this Agreement by the Developer or, in the event the transfer is of or relates to part of the Property, such obligations to the extent that they relate to such part, (ii) any proposed transferee, by instrument in writing satisfactory to the HRA and in form recordable among the land records, shall for itself and its successor and assigns, and specifically for the benefit of the HRA, have expressly assumed all of the obligations of the Developer under this Agreement and agreed to be subject to such obligations, restrictions and conditions or, in the event the transfer is of, or relates to part of the Property, such obligations, conditions, and restrictions to the extent that they relate to such part; provided, that the effect that any transferee of, or any other successor in interest whatsoever to, the Property or any part thereof, shall, for whatever reason, not have assumed such obligations or agree to do so, shall not, unless and only to the extent otherwise specifically provided in the Agreement or agreed to in writing by the HRA, relieve or except such transferee or successor from such obligations, conditions, or restrictions, or deprive or limit the HRA of or with respect to any rights or remedies or controls with respect to the Property of the construction of the Improvements; it being the intent of this Section 7.2, together with other provisions of this Agreement, that to the fullest extent permitted by law and equity and excepting only in the manner and to the extent �pecifically provided otherwise in the Agreement no transfer of, or change with respect to, ownership in the Property or any part thereof, or any interest therein, however consummated or occurring, whether voluntary or involuntary, shall operate, legally or practically,to deprive or limit the HRA, or any rights or remedies or controls provided in or resulting from this Agreement with respect to the Property and the construction of the Improvements that the HRA would have had, had there been no such transfer or change, and 9 � �� (iii) There shall be submitted to the HRA for review all instruments and other legal documents involved in effecting transfers described herein, and if approved by the HRA, its approval shall be indicated to the Developer in writing. In the absence of specific written agreement by the HRA to the contrary, no such transfer or approval by the HRA thereof shall be deemed to relieve the Developer from any of its obligations with respect thereto. The sale of the Development to a Qualified Buyer shall not be deemed to be a transfer within the meaning of this Section 7.2. , Section 7.3 Anprovals. Any approval required to be given by the HRA under this Article I VII may be denied only in the event that the HRA reasonably determines that the ability of the Developer to perform its obligations under this Agreement will be materially impaired by the action for which approval is sought. ARTICLE VIII. EVENTS OF DEFAULT Section 8.1 Events of Default Defined. The following shall be deemed Events of Default under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the context otherwise provides, any one or more of the following events: (a) Failure by the Developer to pay when due the payments required to be paid or secured under any provision of this Agreement; (b) Failure by the Developer to complete the Improvements by December 31, 2015, absent any Unavoidable Delay; (c) Failure by the Developer to observe and substantially perform any covenant, condition, obligation or agreement on its part to be observed or performed hereunder, including the time for such performance; (d) Failure by the Developer to close with a Qualified Buyer within 180 days of completion or after that time as agreed upon by the parties. (e) If the Developer shall admit in writing its inability to pay its debts generally as they become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial part of the Property; (� If the Developer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt, or a court of competent jurisdiction shall enter an order or decree appointing, without the consent of the Developer, a receiver of the Developer or of the whole or substantially all of its property, or approve a petition filed against the Developer seeking reorganization or arrangement of the Developer 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 10 fF 1� �� (g) Tf the Development is in default under any Mortgage and has not entered into a work-out agreement with the Holder of the Mortgage. Section 8.2 Remedies on Default. Whenever any Event of Default occurs, the HRA may, in addition to any other remedies or rights given the HRA under this Agreement, take any one or more of the following actions following written notice by the HRA to the Developer as provided in Section 9.4 of this Agreement: (a) suspend its performance under this Agreement until it receives assurances from the Developer, deemed reasonably adequate by the HRA, that the Developer will cure its default and continue its performance under this Agreement; (b) cancel or rescind this Agreement; (c) withhold the Certificate of Completion; or , d take whatever action at law or in e ui ma a ear necessa or desirable to the HRA to II � ) q tY Y pp rY , collect any payments due under this Agreement, or to enforce performance and observance of any I obligation, agreement, or covenant of the Developer under this Agreement; provided, however, that �, any exercise by the HRA of its rights or remedies hereunder shall always be subject to and limited ' by, and shall not defeat, render invalid or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights or interest provided in this Agreement for the protection of the ' Holders of a Mortgage; and provided further that should any Holder succeed by foreclosure of the Mortgage or deed in lieu thereof to the Developer's interest in the Property, it shall, notwithstanding the foregoing, be obligated to perform the following obligations of the Developer only to the extent that the same have not therefore been performed by the Developer: Sections 3.3 through 3.7; Sections 4.1 through 4.5; Sections 5.1. Said Holder, upon foreclosure or taking of a deed in lieu, shall have no obligations pursuant to this Agreement other than as specifically set forth in the foregoing sentence. 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 remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the HRA or the Developer 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 Imnlied 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 deemed to waive any other concurrent, previous or subsequent Event of Default. 11 �,�v ARTICLE IX. ADDITIONAL PROVISIONS Section 9.1 Conflict of Interests; Representatives Not Individuallv Liable. No HRA officer who is authorized to take part in any manner in making this Agreement in his or her official capacity shall voluntarily have a personal financial interest in this Agreement or benefit financially there from. No member, official, or employee of the HRA shall be personally liable to the Developer, or any successor in interest, for any Event of Default by the HRA or for any amount which may become due to the Developer 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 Developer as though fully set forth herein. Section 9.3 Notice of Status and Conformance. At such time as all of the provisions of this Agreement have been fully performed by the Developer, the HRA, upon not less than ten days prior written notice by the Developer, agrees to execute, acknowledge and deliver, without charge to the Developer or to any person designated by the Developer, a statement in writing in recordable form certifying the extent to which this Agreement has been performed and the obligations hereunder satisfied. Section 9.4 Notices and Demands. Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by either party to the other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt requested or delivered personally: (a) As to the HRA: Richfield HRA Executive Director 6700 Portland Avenue South Richfield, MN 55423 (b) As to the Developer: Twin Cities Habitat For Humanity(TCHFH) ATTN: Chad Dipman 3001 4th Street SE Minneapolis, MN 55414 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 9.4. 12 �'�� Section 9.5 Provisions Not Merged With Deed. None of the provisions of this Agreement is intended to or shall be merged by reason of any deed transferring any interest in the Property and any such deed shall not be deemed to affect or impair the provisions and covenants of this Agreement. Section 9.6. Counterparts. This Agreement may be simultaneously executed in any number of counterparts, all of which shall constitute one and the same instrument. Section 9.7. Extensions. Any extension to the Closing Date and/or extension of the completion date of the Improvements set forth in Section 4.3 that exceeds 6 months from the date agreed to in Section 3.4 and 4.3,respectively,must be approved by the HRA Board. HRA stafF is authorized to , extend the Closing Date to a date less than 6 months from the Closing Date agreed to in Section 3.4 and I extend the completion date of the Improvements to a date less than 6 months from the completion date set forth in Section 4.3. 13 �f�� IN WITNESS WHEREOF, the HRA has caused this Agreement to be duly executed in its name and behalf and its seal to be hereunto duly affixed and the Developer has caused this Agreement to be duly executed as of the day and year first above written. THE HOUSING AND REDEVELOPMENT AUT HORITY IN AND FOR THE CITY OF RICHFIELD,MINNESOTA By Its Chairperson By Its Executive Director STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2014, by Suzanne M. Sandahl,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 ) The foregoing instrument was acknowledged before me this day of , 2014, by Steven L. Devich, the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. Notary Public � �, � � �:. TWIN CITIES HABITAT FOR HUMANITY By: � Its: STATE OF MINNESOTA I ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 2014, by , the of Twin Cities Habitat For Humanity, a corporation under the laws of Minnesota, on behalf of the corporation. Notary Public � �� EXHIBIT A LIST OF CONSTRUCTION PLAN DOCUMENTS • Contract for Development, fully executed • Concept Plans • Site Plan ; 1 � � s' � � EXHIBIT B FORM OF QUIT CLAIM DEED �I �I Quit Claim Deed STATE DEED TAX DUE HEREON: $ Date: FOR VALUABLE CONSIDERATION, Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, Grantor, hereby conveys and quit claims to Twin Cities Habitat for Humanity, a non-profit corporation under the laws of the State of Minnesota, Grantee, real property in Hennepin County, Minnesota, described as follows: Lot 6, Block 11, Nokomis Gardens Rearrangement of Blocks 7, 11, and 12, Girard Parkview, Hennepin County, Minnesota, according to the map or plat thereof on file or of record in the office of the Hennepin County Recorder. This deed is subject to the terms and provisions of that certain Contract for Private Development between Grantor and Grantee, dated , 20_, recorded , 20_, in the office of the Hennepin County Recorder as Document No. (if more space is needed, continue on back) together with all hereditaments and appurtenances. A well disclosure certificate accompanies this document. HOUSINGAND REDEVELOPMENTAUTHORITY IN AND FOR THE CITY OF RICHFIELD Affix Deed Tax Stamp Here By Its Chairperson By , Its Executive Director 2 ��.,��t� STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this day of , 20_, by Suzanne Sandahl, the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the corporation, Grantor. � NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAIC) SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT I STATE OF MINNESOTA } ss. COUNTY OF HENNEPIN The foregoing was acknowledged before me this day of , 20_, by Steven L. Devich, the Executive Director, of Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the corporation, Grantor. SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAK) Check here if part or all of the land is Registered(Torrens) ❑ Tax Statements for the real property described in this instrument should be sent to (include name and address of Grantee): Twin Cities Habitat for Humanity 3001 4th Street SE Minneapolis, MN 55414 This instrument drafted by: Kennedy& Graven, Chartered 470 U.S. Bank Plaza 200 South Sixth Street Minneapolis, MN 55402 3 � �! " EXHIBIT C FORM OF CERTIFICATE OF COMPLETION The undersigned hereby certifies that , has fully and completely complied with its obligations under Article IV of that document entitled "Contract for Private Development", between the Housing and Redevelopment Authority in and for the City of ', Richfield, Minnesota and dated , filed as Document No. with respect to the construction of the approved construction plans at , legally described as and is released and forever discharged from its obligations to construct under such above-referenced Article. DATED: THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY RICHFIELD By Its Chairperson By Its Executive Director I STATE OF MINNESOTA ) )SS COUNTY OF HENNEPIN ) The foregoing instrument was acknowledged before me this day of , 20_, by the Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota on behalf of the public body corporate and politic. Notary Public STATE OF MINNESOTA ) ) SS COUNTY OF ) The foregoing instrument was acknowledged before me this day of , 20_, by Steven L. Devich, the Executive Director of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the public body corporate and politic. 4 �'�� Notary Public This instrument was drafted by: Richfield Housing and Redevelopment Authority 6700 Portland Ave S Richfield, MN 55423 5 �: ` 1 . 62 2 0 15th Avenue South '� r `Y�`. }� Y�'� v'* ,�� ..�-'ff� �.F�� ' ,' ,1.4+ . �"�.��., L ' T `� �,�1- }� L,' `E�e"� f; F-.. `` � �`�1, �J! 3� 1 , � s �`.�. �� . 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UNFINISHED I w�aasQ.FT. i=��o„i,�,il� LIVING ROOM ` --�a � � BASEMENT � w o IrI;II;�Iji�ij��III , 17'-3"x 11'-5" � . v� � � �e�sQ Fr. � �ENTRY � � � , iJ� a� �LL l 26�-0�� 1 COVERED PORCH SECOND FLOOR PLAN BASEMENT PLAN MAIN FLOOR PLAN SINGLE FAMILY HOME BASEMENT UNFINISHED SQ.FT.=827 3001 4TH ST.SE BASEMENT FINISHED SQ.FT.= 150 ��° MINNEAPOLIS,MN 55414-3301 MODEL: 22TS4-2 MAIN FLOOR FINISHED SQ.FT.-977 SECOND FLOOR FINISHED SQ.FT.=670 Habit�ii OFFICE:612-331-4090 6220 15TH AVE S '°`"""°"„y FINISHED SQ FT= 1797 FAX:612-331-1540 RICHFIELD, MN TOTAL SQ FT=2624 5� � � 50.15� `Y - , 20.00' SETBACiG PROPOSED o 2-vTALL � �U�<p I Gi,4RACxE 'Qip�Q6�� 5,00� I ,°o.o 1U00D i AMf' �•o .°o•o .°oo .°oo .°o• � �'v-IpEIUALK I V .�a�e aQoQ e ao,a�aQo�e aQ Q e�U°o•oo°o� °o� I�j e,��ao� �o�� o', I� . lll �a a O q}�.°p.;�°p.;�0 8.00� o�.lo,^ u1DW O I . - a•, .°d•e�.°0� 26.00� � °e'�°o"<o°o'< NO STEP I � �� ' , ENTRY �'��J _ p��,� a d'�e I `T '� c•?{,° an�°� _ I a�.�`o� ad�e� � I . a•on,°p•n^ . F'ROF'OSED 2.00� 5.00� o�°��°e�°'°e� 2-S70RY 5.00' � F° �' ° 2 I-IOUSE I °n•o '�o�e a��e I .,, QaQ, �� `� GOYEf2Ep �I�.°a,>°° o I a•, mo . PORCN �.{�.°:'� 2600' �J � �o -s�rsac� �, PROi�OSED SItE PL�4N .°o°o .°o•o o•o .°o•o' u� o '"SIDEWALiG° '�° ° ~ � SCALE: NTS ° o Q•>a�� oo . .°ao�°oo�� _ 3 Q ' �'a °° � � � ••SITE PLAN AND MODEL ARE PROP06ED. �,o }.o�� Z z SOIL GONDITIONS, EXIStINCs SITE CONPItIONS, o .°(Y.°oo � fK AND LOGATION O� NEICsHBORINCs HOUSES, MAY ° p ° �� u � ALtER 61TE PLAtJ. .°a•o .°ao � � ao,o°ao,e � � z .°ao�.°oo , .°oo .°o�o .o��,°p.o�°p.o 15TH AVE. N. PROPOSEI� SITF PL.4N DRAUJN SY: CNRIStY 3001 4TH ST.SE MISCHKE ^ MINNEAPOLIS,MN 55414-3301 61NCsLE FAMILY DUJELLINCs DA7E: 12-i1-13 C�� ,��., MODEL: 22tS4-2 H Nbitrt. OFFICE:612-331-4090 6220 15TH AvE. S. PLOt DATE: mDAtE �"`"""`"'"`""" FAX:612-331-1540 RICNFIELD, MN 2 . 63 3 6 15th Avenue .�, � -, -.rT.- ��`.` /'t�� tT_'` �,�ei.t A'a , � t P ♦�� V q A'�)''�' f J! ..�' F' S�.{� `� 1 h I � - I �, � ` , � j�'+�� y 4�` f � !.. . - - �<:. .F �:t � 1��,� V�,.,� .f t� t4� y ,�: , _ , 'i . ��.,, x ' '� a � �s�� w � �' . �' i ,-. . . � {f4.'�� Y'� ��./,. M.�' �. .�ri .:5. Y�. . �/ '�� . 1 <� .. <f � � �� 'i., � c � y'1. ( ' � 7 � , � � � . . ,� � .�•.�.( � �i� � �� ,��_ , ,.� , , ;: � �{ � , � � Y { i � � �.. .� ,.. .. .r�/a..... . •r ' .1 � .. , .. ��i . :§t�_ 7 'Fp" �dk.. ,. � .m��.y`„��.�� ,>.. �,�;jq t �X ..� ,,� � .��- *.„� � wa�-� � .�� .� _, � _ ,�'° >w�^- �jx"""`" ,�.'<- "' . .� ..�.� - i�� . . �- :� --�". . .. ,. � . � - _.:t=tl�.a.`.- _. . � � . . - . .-. �. ._... . -� . ,�y'�"" , . _<� �, �� -'�g..� kk � ' }�. � � �.., - ;� . . � . _. '~`-_ . ,� l \t �}� ��: `� � .� �� ;; �� .. ._ . ,_ � � � r n . � �,. ��a � � � � ; ; ;; ;� � + �� 'I, (� "' ;��,I„I�!(i�l - . ' } _,�':.;...,,,� . .�+.,�•�afi�s:s� �s;wnw,c+,,,,n, . ._ .� _�� . . . k-� � �� ' � � ��.�- r�_�. � .�1�. . �J`+w:4�X�1k h:. _ � �� y, �Jvy� � �3 -�f-.'a __'� :t. "�Y': i'f'�^+��€�"'� �zz ? j RENOERING MAY NOT REFLECTACTUAL CONSTRUCTED HOUSE 28�-�� -- ----- -- � -= i = _ ' i � ,� �; � I , ¢��2 F�; UNFINISHED BED.#3 ✓ � �5�-3"� 2� ; + �' � BASEMENT �o'-io•x s�•io° �no s4 Fr� _ ��; ss so.Fr. - B�D#1 __ 11'-3"x 11'-3" 133 SQ.PT. J = �- Q �� UP � .i � �_.� �% -- _LIN`= pp � - _ � .. — _ � �-i, O = - � -': - 4 -_ �; m� y pN � =� � Z c �_ ' !11 ) o �N�� UTtLITY � �� BED.#t4 RnnM.---• � LIVING ,�71i' 'ROOM -- � � ROOM �� 12,_o,.x 9,_y„ 10'-5"x 13'-2" � � �13'-10"x 11'-6" 137 SQ.FT. � ;- �; I 117 SQ.FT. �� J 159 SQ.FT. ;- _ - — � '�� ENTRY�. � z =_��_ � W — COVERED AN U ? o l F= �1 , PORCH _! ! Y ,� � _— ''��I 117 SQ.FL r - ------ �. i . --- 16'-0"- �----�?'-0"_� BASEMENT PLAN MAIN FLOOR PLAN 3001 4TH ST.SE SINGLE FAMILY DWELLING BUlL.DING FOOTPRINT SQ.FT.:1036 ___—-- ----— ----- MINNEAPOLIS, MN 55414-3301 MODFL 24R4-2 BASEMFNT UNFINISf-IED SQ.FT.=665 � E3ASEMENT FINISHED SQ.FT.=371 Hahltat OFFICE:612-331-4090 6336 15TH AVE S Ml�I_N_FLOOR_FINISHED SC2.F"f.==_103_ �°"'°""�' TOTAL FINISHED SQ FT.= 1407 FAX:612-331-1540 RICHFIELD, MN TOTAL SQ FT.=207 � -y� 20.�� serBacK _ _ _ 3 r 6 � � � o PROPOSED � I o � 2-57ALL " � \`.O��p'G � CxARACzE 5.00� I �J A�� o�: � IV 4^: °. oo°. o•o°. oo°. e•e Q `- `. `. <`.�e�`o ' �p e�o°. oc°. en°. o�e°�"t I � < o .VI� ° p°.o a� °. e o c� �04°� ��o"��o°��eo"Q�r. e• I �o�p°�op°�o�p°�I t�o i � . . .�` . ( �oC�e co��. n�0'�.�f�oc _ 2a.00' �`=o> e�on��a'° . o� PROPOSED oD^.`° �04�.°�°e � � es: ,p`.e 4 BEDROOM "�°D� �1°' - RAMBLER o� o�o°��r: 00 . . p 5.66T �a�D',�;. 5.00' v ooa a��o a 1�`0 3 2 ��a°� 5.00� p� ,o 0 so°��t� so°��t� o COV�RED o ° °.p° s PORCH � e''°� 9!�° o°... �< L_ _ •�,.dt� � ^:�.o�; SETSAGK ,` ° ; °,p PROPOS�D SItE PLr4N � ' on°�o•a°. e• F � •:no;.. . e�o � a < sca��: uts � 0 ;51DEUJALIG; - o�a°'�°.e' - � � '' r o '" `.> 4 o e., •�SItE PLATJ AND MODEL ARE PROPOS�D. z z ��<,�<.�; SOIL COIJDITIONS, EXIS71NCx SITE GONDITIOiJS, �°o°�(X°��, A N D L O G A T I O N O F N E I C s N$O R I N G, H O U S E�v, M AY U � ' °°Q`.� AL7ER SI7E PLAN. }_ � oo°. <�`. o• � u�j oo°. e��°. z o�°. z'o°. 15TN AVE. N. PROPOS�D S/�E PL.4N pRAIUN SY: CNRIS7Y 3001 4TH ST.SE MISCNKE ~ MINNEAPOLIS,MN 55414-3307 SINC�LE FAMILY DUIELLINCs pATE: I1-IS-13 e�� MOPEL: 24R4-2 Habltat OFFICE:612-331-4090 6336 15TN AYE. S. PLOT DATE: �DA7E a�x...�a, " '"`"'"'"' FAX:612-331-1540 RICHFIELD, MN /r 3 & 4 - 6416 & 642 0 16th Avenue �� ,��,, � __ __ � � .�, �l� �; -r _�-- r � , -. ' i ,� ��D� l � ' 1 { � J � ` �KI; t/� ; _ . � l� ;( -� �� {, ,�, � j, , !� • �{� }i /� � ��- L+ � f J-� �5�. .:YS-� �� °• 1 . � � ,�, , 'P 'i.� < ._ t,. , ;�: .� fi' . �� '. � �w` -_,ll ' -. �� . . . a . �' 1 ;� + . , �- . - r ■�■ � �� _�`.� i ,�� ;R , � , _ _ _ � 11 ■�■ . � , : . , � ., ; ;_ :: _:�..�,.a;�.. _. . -• -�.. ,�_.., _ , _ _ � „ ,. . _ � . r � :�� W �-�5 ._ _-� �...�..; .�- � �.� - . � � _s �. . . . _ . . .. .. � -�,..- -.�.�= _ , :� - - - -r--- ' � 6420 16th Ave 6416 16t" Ave . � �e',t_ � r� �- �� i I ,� � `� � � t«� • �;'=. ��"^ � �' `,� � � �''' S � ' i �. ��1 , ;;�� ,, (�� ;i;�,, - �� , :`°�� '_- �-�,. = ,_�.; RENOERING MAY NOT REFL ECT ACTUAL CONSTRUCTED HOUSE 26'-0" � �C�i � � ' uP C_ I-�-- NTRY � I,�� BED � � ��' BED#3 � - ��N � i�l��1, #1 STORAGE i /� I"IIIII�o•-a�X s�-a^ � �o'-o X s�-s � �.�� 94 SQ.FT. � 97 SQ.FT. BATH HALL BATH HALL �� Q LIN � o ° —------ _ ------- - • PAN. �--- �--� Z � —�- -- � �� z �'� / `---'`--- - o � � � KITCHEN - = BED#4 BEDROOM#2 12�_9��X 9,9�� 10'-0"x 12'-0" � z 124 SQ.FT. N UTILITY Z �2o sQ.Fr. - -� --- -- � I � ._ ROOM � 7 � � �l� �� _ � �► , i � __- �I' C� " DINING � ROOM �I� ' - �.�� UNFINISHED BASEMENT ; � � LIVING � ' � ENTRY; __ ROOM , ' � � � � � � ' i 1 -... / ;, COVERED PORCH BASEMENT ------------- MA/N FL DOR SINGLE FAMILY DWELLING BUILDING FOOTPRINT SQ. FT.: 1092 3001 4TH ST.SE BASEMENT UNFINISHED SQ.FT.=691 � MINNEAPOLIS,MN 55414-3301 MODEL: 6R4-2 V BASEMENT FINISHED SQ.FT.=401 MAIN FLOOR FINISHED SQ.FT.=1092 Nabitaf: OFFICE:612-331-4090 6416 16TH AVE S ro�H�ma��n TOTAL FINISHED SQ FT.= 1493 ' FAX:612-331-1540 RICHFIELD, MN TOTAL SQ FT.=2184 �-�� 49. ' zo.00' SIDEUJALK `" o,o ao,� I 8.00' .a a a�e ------ - '�`� PROPOSED a o .°o� sereacK � 2-STALL I CsARAGiE I Pn ,°p�n ,°p�e ,°pn ,°p�n je a�,o a�,o a�°o a�°o� Q � QI a�'o a�,n °d•o a0�o O 0 'Q ml N � � N �a�a��o�a�e�a��e o�,� I U ° °• °• °° .�Qp n•�°Oo•�°On•°Doe Nfo .°d.o °p.o 26.00� .°mo .°o�o .°mo .°a�o .'O�n e.'U•o .°��o .°oao PROPOSED � � 4 BEDROOM o e'a°�°e'a°�° RAMBLER � N 5,00� � `� 5.00� <o°o°ao°o � .°mo .°mo . °0°n°�O�n .'0•oe.��•o ,� GOVERED p o °o��°o�� o�c+� � PROPOSED SItE PLAN -SETBAGK 26. O' ° .°°•° .°a•° SGALE: Ntr-v a�_° �o, '�>; . .°mo . N `d a° .°°�° " ° �° ° �' ° � � +�SItE PLA1J AND MODEL ARE PROPOSED. N �� o�;:°o.o SIDEIUALiG - � p 501L CONDITIONS, EXISTINC� SITE CONDITIONS, '° '" U! � AND LOGA710N OF NEICsHHORINCz I-IOUSES, MAY c p ',�°��°,° z z ALtER SITE PLAN. .°o�o .°o�o � (K o V �,.a d,o e,a 0a� } � , > .q ,U .°oo�°o> � u1 z 16TI-I AVE, S. PlF'OP05ED S/TE PLAN DRAWN BY: CHRIStY 3001 4TH ST.SE MISC+-IKE ,'\ MINNEAPOLIS,MN 55414-3301 SINCsLE FAMILY DUJELLINGn T•n�a�h MODEL: 6R4-2 DATE: II-18-13 Habitat OFFICE:612-331-4090 6416 16TN AYE. S. (or NumaNty PLOT DA7E: u�DA7� �""''",`"""'""'' FAX:612-331-1540 t21GHFIELD, MN f: � I: # e- s�; � �"��.a::. � �� - _ �._ --- .. � ._._. ... ..,� r~ �',s#'�� s " ��. '?i t�i�"��:y, �y � � '� .. �� d@�Y�g�� . u �� f�'4SVP � y Yt g� �.' F Y�t . �W1 kr ...�Q�rf�n'� ` ' � .. . ..... � - ..:...._ ' �� . 4.. . .',. . . , � --�. -� :. �- ... �r � . - y..... F.�'�� r;`� .. �,,. - . �.,r#F .' .. afi k t,'� t . ...<� h:� tte.,�,� --.. � �� K: Y°�� F � ,�pc��v��z. � �. - .� �� M1��F - # tu'= : /MAGE MA YNOT REFLECTACTUAL CONSTRUCTED HOUSE - - - - --- ------ - --- , - - ___ o _- - d � ---- , --- ` � BED.#4 �� 1 BEDROOM#1 ' �o o LL-- � � i Ty -��n,_�.�X�o�-z�� ENTRY ��BED#? � _° � 12 8'x6 10" �� I { ....__--_-- � 112 3Q.FT. �'J� =7 143 SQ.FT. , 13'-11"x 10 8 � '�.� , 1 � �-1 � � �� -i�'14Ef SQ.FT � � i � i/� � i � I i.- I..L.{� � .� J � �N � — .��_.� �I _ _ � ._ __ �1 BATH O HALL CLOSET ,r' oN' ' :4 ".__ . I '.- ____ "_'-_- � DN_ I" — - : �--� �� %� ___ , , �� _�{ — X � _- - , �� LOFT _ � � Ll[�1 M' 4� -- -- _ -�x __ '� � HALL��-r�X ia,_�o, ' ' . : ---- � ; PANTRY NIN ' - - BATH 105 SQ.FT - ��" UTILITY --- ' KITCHEN �00 � ---- 10-3"x 9'-0" --- ROOM - � �„X� , „ � __ � '___ -- 1 92 SQ FT. _ -_ � -- i �.-_� 113� .FT � .- ___� �CL. - -- J� t ' � - - - � - - - — l Yi — uP ��l up 1� r BED#3 � � UNFINISHED LIVING ROOM �0 481SQ�FTB ii�il lo?'�� I BASEMENT " „ �_.,,,� i 17'-3"x 11�-s� --�-� ENTRY �. �`� ; � �197 SQ.FL � � i ��,° ; a� , � �- .— - �� ; i_-�-'-�LL —-— � ` 26�_�� __� ___ __ ---- - _ SECOND FLOOR PLAN ---- - — BASEMENT PLAN MAIN FLOOR PLAN SINGLE FAMILY DWELLING BASEMENT UNFINISNED SQ.FT.=827 3001 4TH ST.SE BASEMENT FINISHED SQ.FT.=150 ,��;� MINNEAPOLIS,MN 55414-3301 MODEL: 22TS4-2 MAIN FLOOR FINISHED SQ.FT.=977 }I�.GlltFt 6420 16TH AVE S SECOND FLOOR FINISHED SQ.FT.=670 ;,,❑,,.,..,, OFFICE:612-331-4090 FINISHED SQ FT=1797 FAX:612-331-1540 RICHFIFLD, MN TOTALSQFT=2624 �� f r-----=- ---------—— 49. ------------� I � I I m I I -' = I I � I I � I I I I I I I I - _P_i�C?P_QSE2- - - - I j O 2-�-vtALL � I 5�-O"I � CsARAC�E I I I I � °o•� UJOO I I � ° � RAM � I °,,_o�.ao.o�_��,��.ao.�� I � °�� °��`o °o�o .°,�� I I , , , I °o�o.`o�o ."��o .V O � � I I ipco �o�o °�G�e ;o�. O � i i � e .'P �e I l�o .°o�o .°o�o .° wow O 8.00' I I r�.°.��o, �°a, WELL tt � I �n °a„ °o� 26.00' � �� °� °� NO S7E �I v� ��o .°o�o�°o�o � v "—'� 'I> ENTRY � �'I I `o� nn��,a Ga� I I I °'° `°'° - I I �° ca n°-°a o�- I I I ��e I I I '�° .°°�° .°��° I ' PROPOSEP 5'-O" � ��°��11�=��' � I 2-StOF2Y � I`o ��,o � ,� NOUSE I I [ �,4�� I � � .°s�� .°i� � 5�-O�� I �� 'a� �'� I 0-� I � °°° . o° I I '�o .r°oo �o�o Q I I I ��a-�= -- -- a.00' �_J � °o•� I ��°c�, a�` I � o� �°a��.°o� .°o�sipewa� i �� N (K , F Ul I °o^°i,,.0 _ j I I �` °� °° �° PRO�'OSE1� SIT� i�'L�4N i i °n�` .°n4.; �IQ� i SCALE: N.T.S. � �� ' •�SITE PLAN AND MODEL ARE PROPOSED. I °o< .°o�� I a � 601L CONDITIONS, EXISTINC� SITE GONDITIONS, i n`�� •`�o� �z � AND LOGAtION OF NEICzNBORINCz NOUSES, MAY � ' �` � �° ALTEf2 SITE PLAN. �--a e=--�ar------- 49.5�--— — — — —— � °o� .°o� °oa .°cJe - ---.... -- -- 16TH AVE. PROPOSEp SITE PL.4N pRAU1N BY: CNRISTY 3001 4TH ST.SE MISGNKE � MINNEAPOLIS,MN 55414-3301 61NC�LE FAMILY DUJELLINCs: �� MOP�L: 22T84-2 DATE: II-IS-13 Habitat OFFICE:612-331-4090 6420 16tµ AVE S fur Numnnliy FAX:612-331-1540 RICNFIELD, MN PLOT DATE: mDATE AGENDA 1TEM#; (, REPORT#�: � STAFF REPORT �► � � ' HOUSING AND REDEVELOPMENT AUTHORITY MEETING �TANUARY 22, 2014 JULIE URBAN/KATE AITCHISON,HOUSING REPORT PREPARED BY: $pECIALIST Nauc TirLE KAREN BARTON,ASSISTANT COMMUNITY REPORT PRESENTER: DEVELOPMENT DIRECTOR NAME,TITLE DEPARTMENT DIRECTOR REVIEW: � si Aru REVIEWED BY EXECUTIVE DIRECTOR: �Y� �� ` �° .�. ,% ITEM FOR HRA CONSIDERATION: Consideration of a settlement of a Housing and Redevelopment Authority Deferred Loan. I. RECOMMENDED ACTION: By Motion: Approve or deny a proposal made by the owner of 6700 Elliot Avenue for a settlement of a $15,892.34 Deferred Loan in the amount of $2,384.00. II. EXECUTIVE SUMMARY Marsha Lundeen (Homeowner) is requesting that the Housing and Redevelopment Authority (HRA) accept a settlement of$2,384.00 on a $15,892.34 HRA Deferred Loan she received in 2008. The Deferred Loan Program provides assistance with home maintenance and repairs to low-income households and is funded with Community Development Block Grant (CDBG) funds. Due to financial and personal reasons, the Homeowner is attempting to sell the property to avoid foreclosure. She has received an offer to purchase her property for $171,000; however, the amount she owes on the property is $266,551.32. The first mortgagor has agreed to accept a settlement of$154,985.28 on the first mortgage balance of$186,117.26. Acceptance of the settlement offer by the HRA will enable the Homeowner to avoid foreclosure. 01222014 Loan Settlement Request 6700 Elliot.docx III. BASIS OF RECOMMENDATION A. BACKGROUND . In 2008, the Homeowner received a Deferred Loan in the amount of $15,892.34 in order to make necessary repairs to her home. The loan is deferred with no payments or interest, and is forgiven after 30 years. If the property is sold or transferred within the 30 year period, the loan becomes due and payable. . Due to financial and personal reasons, the homeowner is attempting to sell the property to avoid foreclosure. She has received an offer of $171,000 on the property after originally listing it for$184,900 and dropping the price to $179,900 (the current Estimated Market Value is $188,000; the homeowner paid $222,000 for the property in 2003). After paying off the first mortgage, fees and commissions, closing costs, and City-required repairs, the settlement leaves the homeowners $95,551.32 short of covering all costs. :........................................................................................................................................................................................................................:................... ................:...................................................................... ..........:..........................................................................: , Debt ; Amount Proposed : Settlement ; ; ed � ' ; � : , Ow ; Settlement : Ratio � : . :...................................................................................................................................�............................................................................................................�.......................,......... 28 :.................... o........... : First Mortgage (Richfield Bloomington ; $186,117.26 : $154,074. 83/o � : � : : � . . : ; , ; Credit Union) r. ` � ,........................................................................................................... .............................................................................................................................._...................__...........;..._............................................................................;......................................................................... New Home Second Mort�a.ge....(H.RA�...............: $_15,892.34 ; $2,384.00_...:........................................._�._5...°.��.....; :............................................................................................................................ . ,.................._ ,.......................... : HUD Third Mortgage (mortgage $50,000.00 : 0 ; 0% , ; : : ; : ; modification program.�............................................................................................�......................................................................_......:..............................................................................p......................................................................; ............................................................................. : Settlement Charges....................................................................................................._e...............�_�_4,291.72 ` $_�_4,2_91_.72.....d. 100 0 ; ,............................................................................................... _......_�.................... _............................................................., ; Water � _$250_._0.0....:............. . . $250..�_��.....� 100% : ............................................ ......................................._................................................;............. ,.........................................................................., � TOTAL ....................................................:.................................._..............................................................................:......_$266,551....32....I........$.1.7.1..,.000.00.....1..........................................._64°°.....; .................................................. B. POLICY • The HRA acts to protect its financial interests. • The Mortgage Foreclosure Response Program Procedural Guidelines state as follows: "Staff will consider short sale offers and negotiate as high of repayment as possible. Action will be taken quickly so as to not disrupt the short sale opportunity and cause the homeowner to enter into foreclosure." . The purpose of the Deferred Loan Program is to provide loans to Homeowners earning less than 80 percent of the Twin Cities Area Median Income (AMI) to make improvements that address health and safety or property maintenance items. C. CRITICAL TIMING ISSUES . If the HRA and the Homeowners cannot reach an agreement regarding the payoff of the HRA mortgage, the Homeowner is in danger of defaulting on the principal mortgage. • The purchase agreement requires the Homeowner to receive short sale approvals by February 8, 2014 (6 months from the date of the Homeowner's acceptance of the purchase offer). D. FnvaNClaL • The attached letter from the Homeowner describes the financial and personal difficulties she has encountered that have led to the need to sell the home. • The first mortgage lender has agreed to a settlement of$154,074.28. This amount is 83 percent of the $186,117.26 total amount owed. • The HRA has a subordinated position to the primary lender. If the property is foreclosed by the lender, the HRA would likely receive nothing. • Neighborhoods in which there are one or more foreclosed and vacant homes have detrimental impacts on the surrounding property values. • The loan was funded with CDBG funds. The HRA established the requirement that a borrower must repay the loan at the sale of the property. There is no federal requirement to repay the funds. • The HRA has received five requests for a short sale settlement in the past two years. The HRA agreed to the following settlements: o $2,500 out of$25,000 (10%) o $1,000 out of$1,577 (63%) o $0 out of$8,249.95 (0%) o $2,600 out of$26,000 (10%) o $5,040 out of$10,080 (50%) o $26,094.28 out of$30,000 (87%) E. LEGAL • Legal counsel has confirmed the HRA's authorization under a short sale. IV. ALTERNATNE RECOMMENDATION(S� • Deny the proposed settlement. • Propose a different settlement amount. • Authorize staff to negotiate a settlement amount within certain parameters. V. ATTACHMENTS • Letter from Marsha Lundeen; 6700 Elliot Avenue South VI. PRINCIPAL PARTIES EXPECTED AT MEETING • Marsha Lundeen, Homeowner • Chris Willette, Realtor +JJo� � V Marsha J. Lundeen 6700 Elliot Avenue South Richfield, MN 55423 August 14, 2013 Dear Sir or Ma'am, I am writing today to ask for your assistance with the sale of my home and relieving me of further burden. �I One month after obtaining the mortgage on my home in December 2008, I was laid off from BOTH of my jobs. I ' have.struggled financially since that time to keep up the mortgage payments, utilities, taxes, insurance, lawn care, snow removal, and repair work to the home itself and to appliances within. The main reason I worked so hard to keep my home, even through the housing market crash,was to provide a stable and accessible home for my youngest child Tess,who was severely disabled and extremely medically fragile. Tess passed away on October 1, 2012 and since that time, it is all I can do to go to work every day and coak a meal at night. I have no need for a 4 bedroom house and I lack the emotional wherewithal to continue trying to maintain the house. I need to gefi out from under this weight and let a nice young family, who really NEED the space buy the house and make raise a family. I ask that you approve the proposed short-sale and let me move forward without the burden of owning this . home any longer. Thank you for your time and consideration. Respectfully, Marsha Lundeen AGEPdDA ITEM#: 7 REPORI'#: g STAFF REPORT � / � �' HOUSING AND REDEVELOPMENT �� AUTHORITY MEETING JANUARY 22, 2014 REPORT PREPARED BY: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR NanrE Ti��H REPORT PRESENTER: J�� STARK, COMMUNITY DEVELOPMENT DIRECTOR Natirr,TrrL� DEPARTMENT DIRECTOR REVIEW: � .� �J 1 aTUr� � ,, �„- REVIEWED BY EXECUTIVE DIRECTOR: � � ITEM FOR HRA CONSIDERATION: Consideration of a resolution designating buildings (associated with the former City Garage facilities and the former Gleason's Mortuary) as structurally substandard within the Richfield Redevelopment Pro'ect Area and authorizing their demolition. I. RECOMMENDED ACTION: By Motion: Adopt a resolution designating buildings (associated with the former City Garage facilities and the former Gleason's Mortuary) as structurally substandard within the Richfield Redevelopment Pro'ect Area and authorizin their demolition. II. EXECUTIVE SUMMARY On November 7, 2013, staff provided the Housing and Redevelopment Authority with HRA Memorandum 2013-56 (attached) which discussed establishing a Tax Increment Financing (TIF) District for the former City Garage and Gleason's Mortuary sites. That Memo explained that the buildings on the sites are hazardous and should be demolished in the interest of public safety. In an effort to identify funding sources for the costs associated with the demolition and environmental remediation, staff has proposed the establishment of a Redevelopment TIF District. If such a TIF District were to be established, future Tax 01222014 Mortuary&Grage demo and substandardxxx Increment generated by any development completed within five years could be used to reimburse the City and/or Richfield Housing and Redevelopment Authority (HRA) for funds expended for those costs. In order to qualify as a Redevelopment TIF District, the property within the proposed District boundaries must be found to be blighted and structurally substandard under the requirements established by Minnesota State Statutes. The architecture firm LHB, Inc. has conducted an extensive evaluation of the site and issued a report (attached) which concluded that the site and the buildings it contains would meet the requirements necessary to qualify as a Redevelopment TIF District. The attached resolution would make findings accepting the results of the LHB report and designating the buildings to be substandard as defined in Minnesota Statues as they pertain to Tax increment Financing Districts. The resolution would also approve the demolition of the structures (specifically the former City Garage buildings and the former Gleason's Mortuary building) within the proposed TIF District boundaries in advance of the creation of the TIF District. The Richfield City Council adopted a similar Resolution by unanimous (5-0) vote on January 14, 2014. IIL BASIS OF RECOMMENDATION A. BACKGROUND • The buildings on this site are hazardous and should be demolished as soon as possible in the interest of public safety. • The costs of demolition, environmental remediation and other "TIF Qualified Expenses" could be reimbursed by future tax increment funds if a TIF District is established. , • A report by the architectural firm, LHB, Inc., concludes that the site contains structurally substandard buildings and meets the ' requirements of a Redevelopment TIF District. ', i B. POLICY 'I • A prescribed percentage of buildings on a site must be found to be structurally substandard in order for that site to meet the requirements of a Redevelopment TIF District as defined by Minnesota State Statutes. , • The Richfield City Council adopted a similar Resolution by unanimous (5-0) vote on January 14. C. CRITICAL TIMING ISSUES • Adoption of this resolution will allow staff to begin the process of procuring bids for the demolition of the buildings and conducting the demolition as quickly as possible. D. FINANCIAL • The costs of environmental remediation and demolition are proposed to be reimbursed by future Tax Increment generated by future development occurring within the next five years. In the interim, an Interfund Loan from the City's Capital Improvement Reserve Fund will pay for the costs associated with demolition. E. LEGaL • City and HRA Legal Counsel have been involved in all discussions ' relating to the potential establishment of this TIF District and have ' reviewed the attached resolution. ''� I IV. ALTERNATIVE RECOMMENDATION�S� • Defer the consideration of this item until a later date in order to garner more information, discussion and/or input. � • Elect not to adopt the resolution and direct staff to investigate other methods of financing the demolition and environmental remediation on this site. V. ATTACHMENTS • Resolution • HRA Memorandum No. 2013-56 • Building Conditions Report conducted by LHB, Inc. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A / I � RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION NO. RESOLUTION DESIGNATING BUILDINGS AS STRUCTURALLY SUBSTANDARD WITHIN RICHFIELD REDEVELOPMENT PROJECT BE IT RESOLVED By the Board of Commissioners ("Board") of the Richfield Housing and Redevelopment Authority ("Authority") as follows: Section 1. Recitals. � 1.01. Under Minnesota Statutes, Section 469.174, subd. 10(d), the Authority is � authorized to deem parcels as occupied by structurally substandard buildings despite prior demolition or removal of the buildings, subject to certain terms and conditions as described in this resolution. 1.02. The Authority intends to cause demolition of the buildings located on the property described in Exhibit A hereto (the "Designated Property"), and may in the future include the Designated Property in a redevelopment or renewal and renovation tax increment financing district as defined in Minnesota Statutes, Sections 469.174, Subd. 10 or Subd. 10a. Section 2. Buildinqs Desiqnated Substandard; Other Proceedinqs. 2.01. The Authority finds that the buildings on the Designated Property as described in Exhibit A are structurally substandard to a degree requiring substantial renovation or clearance, based upon the analysis of such buildings by LHB Architects dated January 9, 2014 and on file in City Hall. 2.02. After the date of approval of this resolution, the buildings on the Designated Property may be demolished or removed by the Authority, or such demolition or removal may be financed by the Authority, or may be undertaken by a developer under a development agreement with the Authority. 2.03. The Authority intends to include the Designated Property in a redevelopment or renewal and renovation tax increment financing district, and to file the request for certification of such district with the Hennepin County auditor within three years after the date of demolition of the buildings on the Designated Property. 2.04. Upon filing the request for certification of the new tax increment financing district, the Authority will notify the Hennepin County auditor that the original tax capacity of the Designated Property must be adjusted to reflect the greater of (a) the current net tax capacity of the parcel, or (b) the estimated market value of the parcel for the year in which the buildings were demolished or removed, but applying class rates for the current year, all in accordance with Minnesota Statutes, Section 469.174, subd. 10(d). 2.05. Authority staff and consultants are authorized to take any actions necessary to carry out the intent of this resolution. Approved by the Board of Commissioners of the Richfield Housing and Redevelopment Authority this 22nd day of January, 2014. Chair ATTEST: Secretary 1-� EXHIBIT A Description of Designated Property I i i � CITY OF RICHFIELD, MINNESOTA � �� Office of City Manager November 7, 2013 Council Memorandum No. 107 HRA Memorandum No.56 The Honorable Mayor Housing and Redevelopment and Authority Commissioners Members of the City Council City of Richfield Subject: TIF Qualification of the Gleason Mortuary and Former City Garage Site I Council Members and Commissioners: Due to the deteriorating condition of the former Gleason Mortuary building and the structures associated with the former City Garage site (both north and south of 77th Street), staff is recommending demolition of all structures on those sites. In the past, staff has been hesitant to demolish the buildings because of the cost associated with demolition and because such demolition could adversely affect the future ability to designate the area as a Redevelopment TIF District (if needed, feasible and publicly supported) in the absence of the buildings. The conditions of the buildings are so bad at this time however, that staff feels it is necessary to complete the demolition as soon as possible in order to prevent any public health liabilities. The estimated cost of abating any remaining environmental contaminants and demolishing the buildings is estimated as high as $250,000. Currently, neither the City nor the HRA have budgeted funds for these costs, Prior to demolishing the buildings, staff is recommending that the area be examined to determine whether it wauld qualify as a Redevelopment TlF District and, if so, have the City Council and the Housing and Redevelopment Authority (HRA) adopt resolutions indicating that the area would qualify as a Redevelopment TIF District and that the City Council and HRA intend to create such a T1F District. The HRA and the City may then move forward with the demolition and take the steps necessaty to designate the properties as a Redevelopment TIF District. If the area were to develop within five years of establishing such a TIF District, the HRA and City Council could use TIF funds to reimburse them for the money expended on demolition and environmental cleanup, Policy makers would also preserve the ability to make a future decision about the allocation of any additional tax increment funds that were generated by such a development. Unless directed otherwise, staff will work with Ehlers Associates, Cit� and HRA Attorneys and LHB Architects (who has expertise in evaluating buildings for TI� qualifications) on preparing the documents for TIF District establishment. These documents would then come before the HRA and City Council for formal consideration in December and January. Re ec ull submitted, ,� ev n�ch City Manager SLD;cak Email: Department Directors Finance Manager Assistant City Manager AGENDA ITEM#: g REPORT#: g STAFF REPORT � � ' �' , HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 22, 2014 REPORT PREPARED BY: JOHN STARK, COMMUNITY DEVELOPMENT DIRECTOR Nfwrr,TirLE REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT I I DIRECTOR i NAME,TIT/,E I DEPARTMENT DIRECTOR REVIEW: � • A I � REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of an InterFund Loan for advance of certain costs in connection with proposed Tax Increment Financin District No. 2014-1. I. RECOMMENDED ACTION: By Motion: Approve a resolution authorizing an Interfund Loan for the advance of certain costs in connection with proposed Tax Increment Financin District 2014-1. II. EXECUTIVE SUMMARY The Housing and Redevelopment Authority (HRA) is considering action related to the establishment of a Tax tncrement Financing (TIF) District at the location of the former City Garage Site and former Gleason's Mortuary. The purpose of this TIF District would be to provide a future source of funding reimbursement for costs related to demolishing the buildings, as well as any necessary environmental remediation. In the event the TIF District is established, it is recommended that the HRA establish an InterFund Loan for an amount not to exceed $300,000 to authorize up- front payment for demolition and other qualified costs. The source of funds will be the City's Capital Improvement Reserve Fund. If the site were to be redeveloped 01222014 Interfund Loan-TI District 2014-1xxx within five years, then tax increment generated by such a development could be used to reimburse this fund. The Richfield City Council adopted a similar Resolution by unanimous (5-0) vote on January 14, 2014. �, � III. BASIS OF RECOMMENDATION I A. BACKGROUND • The buildings on this site are hazardous and should be demolished in the interest of public safety. • The costs of demolition, environmental remediation and other"TIF Qualified Expenses" would be reimbursed by future tax increment funds if a TIF District is established B. POLICY • Under Minnesota Statutes, Section 469.178, Sub. 7, the HRA is authorized to advance or loan money from the General Fund or any other fund from which such advances may be legally authorized, in order to finance the qualified costs. • The Richfield City Gouncil adopted a similar Resolution by unanimous (5-0) vote on January 14. C. CRITICAL TIMING ISSUES • The buildings are hazardous and should be demolished as soon as possible in the interest of public safety. D. FINANCIAL • The source of funds for the InterFund Loan will be the City's Capital Improvement Reserve Fund. • Reimbursement will be made from tax increment generated by proposed Tax Increment Financing District 2014-1. • The interest rate for repayment will be 4%, which is the maximum rate allowed under Minnesota Statute. E. LEGAL • The resolution was prepared by HRA legal counsel. IV. ALTERNATNE RECOMMENDATION S • Do not approve the InterFund Loan. • Approve the Interfund Loan, identifying an alternative source of funds. V. ATTACHMENTS • Resolution � • HRA Memorandum No. 2013-56 VL PRINCIPAL PARTIES EXPECTED AT MEETING • None i�� RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY RESOLUTION NO. RESOLUTION AUTHORIZING AN INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN CONNECTION WITH PROPOSED TAX INCREMENT FINANCING DISTRICT NO. 2014-1. BE IT RESOLVED by the Board of Commissioners (the "Board") of the Richfield Housing and Redevelopment Authority (the "Authority") of the City of Richfield, Minnesota, as follows: WHEREAS, the Authority and the City of Richfield, Minnesota (the "City") intend to ', establish Tax Increment Financing District No. 2014-1 (the "TIF District") within the Richfield Redevelopment Project (the "Project") pursuant to Minnesota Statutes, Sections 469.174 to ' 469.1794, as amended (the "TIF Act"), and will adopt a Tax Increment Financing Plan (the "TIF Plan") for the purpose of financing certain improvements within the Project. WHEREAS, the Authority has determined that it may use tax increments from the TIF District to pay for certain costs of demolition of substandard buildings within the proposed TIF District, costs of environmental remediation, and administrative costs (the "Qualified Costs"), which costs may be financed on a temporary basis from City or Authority funds available for such purposes. WHEREAS, under Section 469.178, Subd. 7 of the TIF Act, the Authority is authorized to advance or loan money from the Authority's general fund or any other fund from which such advances may be legally authorized, in order to finance the Qualified Costs. WHEREAS, the Authority intends to reimburse itself for all or a portion of 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 Authority hereby authorizes the advance of up to $300,000 from the Capital Improvement Reserve Fund or so much thereof as may be paid as Qualified Costs. The Authority 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 wifl 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 4.0% 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 Authority has Available Tax Increment (defined below), or on any other dates determined by the Executive Director of the Authority, 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 after other obligations have been paid, or as determined by the Executive Director of the Authority, 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 the TIF Act. Payments on this InterFund Loan may be subordinated to any outstanding or future bonds or notes issued by � /� the City or the HRA and secured in whole or in part with Available Tax Increment. The Interfund Loan shall be paid prior to any pay-as-you-go notes or contracts secured in whole or in part with Available Tax Increment, and any other outstanding or future interfund loans secured in whole or in part with Available Tax Increment. 4. The principal sum and all accrued interest payable under this Interfund Loan are pre- payable in whole or in part at any time by the Authority 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 Authority in accordance with Section 469.178, Subd. 7 of the TIF Act, 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 Authority. 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 'I 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 Authority 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 Authority 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 Board of Commissioners of the Richfield Housing and Redevelopment Authority this 22nd day of January, 2014. Chair ATTEST: Secretary , CITY OF RICHFIELD, MINNESOTA �'�� Office of City Manager November 7, 2013 Council Memorandum Na. 107 HRA Memorandum No.56 ; The Honorable Mayor Housing and Redevelopment ' and Authority Commissioners ; Members of the City Council City of Richfield I , Subject: TIF Qualification of the Gleason Mortuary and Former City Garage Site , II ; Council Members and Commissioners; j Due to the deteriorating condition of the former Gleason Mortuary building and the I structures associated with the former City Garage site (both north and south of 77th j Sfreet), staff is recommending demolition of all structures on those sites. In the past, staff has been hesitant to demolish the buildings because of the cost associated with demolition and because such demolition could adversely affect the future ability to designate the area as a Redevelopment TIF District (if needed, feasible and publicly supported) in the absence of the buildings. The conditions of the buildings are so bad at this time however, that staff feels it is necessary to complete the demolition as soon as possible in order to prevent any public health liabilities. The estimated cost of abating any remaining environmental contaminants and demolishing the buildings is estimated as high as $250,000. Currently, neither the City nor the HRA have budgeted funds for these costs. Prior to demolishing the buildings, staff is recommending that the area be examined to determine whether it would qualify as a Redevelopment TIF District and, if so, have the City Council and the Housing and Redevelopment Authority (HRA) adopt resolutions indicating that the area would qualify as a Redevelopment TIF District and that the City Council and HRA intend to create such a TIF District. The HRA and the City may then move forward with the demolition and take the steps necessary to designate the properties as a Redevelopment TIF District. If the area were to develop within five years of establishing such a TIF District, the HRA and City Council could use TIF funds to reimburse them for the money expended on demolition and environmental cleanup. Policy makers would also preserve the ability to make a future decision about the allocation of any additional tax increment funds that were generated by such a development. Unless directed otherwise, staff will work with Ehlers Associates, City and HRA Attorneys and LHB Architects (who has expertise in evaluating buildings for TIF qualifications) on preparing the documents for TIF District establishment. These documents would then come before the HRA and City Council for formal consideration in December and January. Re ec ull submitted, .� ev n�ch City Manager SLD:cak Email: Department Directars Finance Manager Assistant City Manager