01-14-08 Agenda
3. Approval of minutes of (1) Regular HRA Meeting of November 19, 2007 and (2)
Special HRA Meeting of December 3, 2007
Notes:
4. HRA approval of agenda
5. 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 is necessary.
However, any HRA Commissioner may request that an item be removed from the
Consent Calendar and placed on the regular agenda for HRA discussion and action. All
items listed on the Consent Calendar are recommended for approval.
A. Consideration of approval of designating Community Development Director as
Acting Executive Director of HRA in event Executive Director is absent from City for
2008 S.R. No.2
B. Consideration of approval of resolutions designating official depositories for HRA'
including collateral, for 2008 S.R .No. 3
C. Consideration of approval of resolution designating Richfield Sun-Current as official
newspaper for 2008 S.R. No.4 _
D. Consideration of approval of continuing contract with Greater Metropolitan Housing
Corporation to deliver housing programs and services S.R. NO.5
E. Consideration of approval of resolution authorizing certificate of completion for
Kensington Park, 76th Street and Lyndale Avenue S.R. No.6
F. Consideration of approval of resolution authorizing termination of option agreement
for Kensington Park, 76th Street and Lyndale Avenue S.R. NO.7
G. Consideration of approval of mortgage satisfaction in substantially the form as
provided and its execution for Kensington Park; 76th Street and Lyndale Avenue
S.R. No.8
H. Consideration of approval of contract with Frattalone Companies for demolition at
6744 Blaisdell Avenue S.R. NO.9
Notes:
6. Consideration of subordination request for HRA deferred loan at 7433 Park Avenue
Staff Report No. 10
Notes:
7. Consideration of development proposal by Sherman and Associates for rental housing
development at former Bridgeman's restaurant site, 800 West 66th Street
Staff Report No. 11
Notes:
8. Consideration of preliminary proposals for Cedar Point Phase 1\ area
Staff Report No. 12
Notes:
9. Executive Director report
10. 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 ITEM # 2
REpORT # 1
STAFF REpORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 14, 2008
REpORT PREPARED By:
CHERYL KRUMHOLZ, EXEC. COOR.
NAME, TITLE
REpORT PRESENTER:
EVICH, EXECUTIVE DIRECTOR
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of the election of officers for the Housing and Redevelopment Authority (HRA)
for 2008.
I. RECOMMENDED ACTION:
By Motion: Elect officers for the Richfield Housing and
Redevelopment Authority for 2008.
I II. BACKGROUND I
The bylaws of the Richfield Housing and Redevelopment 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 2007 were:
Sue Sandahl, Chair
Marty Kirsch, Vice Chair
Joan Heimberger, Interim Secretary
o 1140fficers
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. 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.
I B. CRITICAL ISSUES I
. The bylaws of the Richfield HRA require that an election of officers for
the HRA be held at the annual meeting in January.
I IV. ALTERNATIVE RECOMMENDATION(S) I
. Do not hold the election. However, this would be in contradiction of the HRA
bylaws.
Iv. PRINCIPAL PARTIES EXPECTED AT MEETING
. None.
AGENDA ITEM # SA
REpORT # 2
STAFF REpORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 14, 2008
REpORT PREPARED By:
CHERYL KRUMHOLZ, EXEC. COOR.
NAME, TITLE
REpORT PRESENTER:
L. DEVICH, EXECUTIVE DIRECTOR
REVIEWED BY EXECUTIVE DIRECTOR:
.ITEM FOR HRA CONSIDERATION:
Consideration of designating the Community Development Director as the Acting Executive
Director of the Housing and Redevelopment Authority (HRA) for 2008 in the event the
Executive Director is absent from the City. '
I. RECOMMENDED ACTION:
By Motion: Designate the Community Development Director as
Acting Executive Director of the HRA in the event the Executive
Director is absent from the City.
I II. BACKGROUND I
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.
The Community Development Director was designated Acting Executive Director for
2008.
[ III. BASIS OF RECOMMENDATION
I A. POLICY
o 114actingexecutivedirector
. Designation of an Acting Executive Director is a normal business
action of the HRA similar to the designation of depositories and the
official newspaper.
. The Community Development Director has been designated as the
Acting Executive Director in the past.
I B. CRITICAL ISSUES I
. It is necessary to designate a person to serve as the Acting Executive
Director to ensure continuation of HRA operations during an absence
of the Executive Director.
I IV. ALTERNATIVE RECOMMENDATION(S) I
. Defer this designation to another HRA meeting.
I V. PRINCIPAL PARTIES EXPECTED AT MEETING
. None.
AGENDA ITEM # 5B
REpORT # 3
STAFF REpORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 14, 2008
REpORT PREPARED By:
CHRIS REGIS, FINANCE MANAGER
NAME, TITLE
REpORT PRESENTER:
REVIEWED BY EXECUTIVE
DIRECTOR
ITEM FOR HRA CONSIDERATION:
Consideration of resolutions designating official depositories for the Housing and
Redevelopment Authority for 2008, includinq 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.
I II. BACKGROUND
N/A
I III. BASIS OF RECOMMENDATION
I A. POLICY I
· 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 $100,000.
. Finally, a designation must be made for certain financial institutions as
depositories for the investment of HRA funds for 2008. These institutions,
such as investment brokerage firms, offer government securities in the
manner required by law. These financial institutions include U.S. Bank,
Oain Rauscher, Wells Fargo Brokerage Services, Morgan Keegan, N.A.
Investment Services, Inc. Piper Jaffray & Co., Northland Securities and
the 4M Fund.
I B. CRITICAL ISSUES
. N/A
I C. FINANCIAL
. N/A
I D. LEGAL I
. 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.
I IV. ALTERNATIVE RECOMMENDATION(S) I
. The HRA could solicit other financial institutions for official depositories, but
past relationships with the depositories recommended have proven
satisfactory for the City.
I V. ATTACHMENTS I
. Resolution designating US Bank a depository of funds of the HRA of Richfield
for the year 2008.
. Resolution designating certain savings and loan associations, banks, and
credit unions as depositories for the investment of HRA funds in 2008.
. Resolution designating certain financial institutions as depositories for the
investment of HRA of Richfield funds in 2008.
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. None
5-8-1
RESOLUTION NO.
RESOLUTION DESIGNATING U.S. BANK
A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD
FOR THE YEAR 2008
BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as
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;
SUZANNE M. SANDAHL, CHAIR
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
14th day of January, 2008. '
Suzanne M. Sandahl, Chair
ATTEST:
Joan Heimberger, Secretary
5 B- d.-
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 2008
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 Savings and Loan Insurance
Corporation (FSLlC), the Federal Deposit Insurance Corporation (FDIC), or National Credit
Union Administration (NCUA); and
WHEREAS, the amount of said deposits may not exceed the FSLlC/FDIC/NCUA
insurance covering such deposits which insurance amount is presently $100,000; 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 2008.
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
$100,000, 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 14th day
of January, 2008.
ATTEST:
Suzanne M. Sandahl, Chair
Joan Heimberger, Secretary
56--3
RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN FINANCIAL
INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2008
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
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 2008.
2. The following financial institutions designated as depositories for the Housing and
Redevelopment Authority of Richfield funds:
Dain Rauscher, Inc.
Wells Fargo Brokerage Services
N.A. Investment Services, Inc.
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.
Piper Jaffray & Co.
Morgan Keegan
4M Fund
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 14th
day of January, 2008.
Suzanne M. Sandahl, Chair
ATTEST:
Joan Heimberger, Secretary
AGENDA ITEM #
REPORT #
-5C""------"----
----A- -----
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 14, 2008
I REPORT PREPARED By:
NANCY GIBBS, CITY CLERK
NAMh', TnH"
I REPORT PRESENTER:
DEPARTMENT DIRECTOR REVIEW:
STEVEN L. DEVICH, EXECUTIVE DIRECTOR
NAMI<", TinH
D
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR BRA CONSIDERATION:
Consideration of resolution designating an official newspaper for 2008.
1. RECOMMENDED ACTION:
By Motion: Approve the resolution designating for 2008 the Richfield
Sun-Current as the official newspaper for the City of Richfield
I II. BACKGROUND I
The Richfield Sun-Current, published by Minnesota Sun Publications, has been the
City's official newspaper for many years.
Attached is a copy of a letter from Minnesota Sun Publications requesting that they
be designated the official newspaper for the City of Richfield for 2008. The 2008
advertising rate structure for legal notices is as follows:
1 Column width
$14.30 per inch for first insertion
$ 7.15 per subsequent inch
There are 11 lines per inch. The 2007 rate was the same as the rate proposed for
2008.
For 2008 the Minneapolis Star Tribune Newspaper could be considered as the
official newspaper. Attached is a fax of the 2008 advertising rate structure for legal
notices in the Sunday and weekday, metro and statewide issues. The rate is $4.75
per line. The 2007 rate was the same as the rate proposed for 2008.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The Charter of the City of Richfield requires in Section 13.01 thereof
that the City Council annually designate an official newspaper for the
City.
. The Sun-Current has expressed an interest in continuing to serve as
the official newspaper of the City.
. The Sun-Current has served well as the official paper for many years.
. The Sun-Current is delivered to nearly all residences in the City.
. In prior years the City has designated the Minneapolis Star Tribune as
backup official newspaper.
I B. CRITICAL ISSUES I
. The designation must be made at the first meeting of the new year.
I C. FINANCIAL I
. The cost of the official publication is reasonable.
I D. LEGAL I
. A newspaper must be designated each year by the City for publication of
all official and legal City business.
. For less confusion to the reader, the City Attorney has recommended not
having a backup newspaper.
I IV. ALTERNATIVERECOMMENDATION(S) I
. Not make a designation and request the City Clerk's office to check into using
another publication.
I V. ATTACHMENTS
. Resolution
. Letter from Minnesota Sun Publications
. Fax from Star Tribune
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. None
5C~
RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER FOR 2008
WHEREAS, the Charter of the City of Richfield requires in Section 13.01 thereof
that the HRA annually designate an official newspaper for the City.
NOW, THEREFORE, BE IT RESOLVED that the Richfield Sun-Current is
designated the official legal newspaper for the City of Richfield for 2008 for all publications
required to be published therein.
Adopted by the HRA of the City of Richfield, Minnesota this 14th day of January,
2008.
Suzanne M. Sandahl, Chair
ATTEST:
Nancy Gibbs, City Clerk
1IT"'.' 11-w~ d'/
~tmt~ )~no&'~BeaCOn
5 C: r ~II.I\I
PRESS&NEWS ;~;Ii~i:ers
www.mnsun.com
Sun Patriot
Newspapers
~if~JEtte
116 East River 408 E. Main St. 33 Second St. N.E. 10917 Valley View Road 8 Elm Street South 1931 Curve Crest Blvd.
Monticello, MN 55362 Melrose, MN 56352 Osseo, MN 55369 Eden Prairie, MN 55344 Waconia, MN 55387 Stillwater, MN 55082
November 15, 2007
City of Richfield
City Council
6700 Portland Avenue
Richfield, MN 55423-2599
Dear City Council Members:
The Richfield Sun-Current would like to be considered for designation as the legal newspaper for the
City of Richfield for the upcoming year.
All published legal notices are posted on our website (www.mnsun.com) at no additional charge.
This is an enhancement to the local news coverage already available on the Internet and will
broaden the readership of your legal notices.
One of the main benefits of publishing your legal notices with the Sun-Current is our home delivery.
Sun Newspapers has become the primary source of community news in the suburbs. Your notices in
our paper have the best chance of being seen and read.
We would like to continue working with you, therefore, we will not be making a rate change for the
coming year.
The rate structure for legals effective the first of the year will be:
1 column width: $14.30 per inch for first insertion
$7.15 per inch for subsequent insertions
Our columns are 14 picas wide
There are 11 lines per inch
Two notarized affidavits on each of your publications will be provided with no additional charge.
The deadline for regular length notices is 2:00 p.m. the Thursday prior to publication. E-mailing the
legal. notices is an efficient and accurate way of getting the notices to us. The e-mail address for the
legal department is sunlegals@acnpapers.com. We still accept notices on disk, faxed or through the
mail. If you require more information to make your decision, please contact me or Mary Ann Carlson,
our Legal Representative, at 952-392-6829.
Thank you for considering the Sun-Current as the official newspaper for the City of Richfield for the
upcoming year. We appreciate the opportunity to serve the needs of your community.
s~
Jeffrey Coolman
Vice President and Group Publisher
In t~e Community. With the Community. For the Community
11/26/2007 10:57 FAX 612 673 4884
STAR TRIBUNE CLS. AUV.
5 C,'-d.-
Starltibune
Fax
TRANSMISSION
425 PORTl<AND
Minneapolis, MN 55488
TO: Nancy - City of Richfield
FAX#: 612-861-9749 PHONE#:
FROM: Cheri Ronglien
FAX#: 612-673-4884 PHONE #:
DATE: November 26, 2007 PAGES: 1
SUBJECT: Star Tribune legal Notice Rates for 2008
The rate will be $4.75 per line.
AGENDA ITEM # 5D
REpORT # 5
STAFF REPORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 14, 2008
REPORT PREPARED By:
VANESSA HAIGHT, HOUSING SPECIALIST
NAME, TITLE
REpORT PRESENTER:
JOHN STARK, ASSISTANT DIRECTOR
COMMUNITY DEVELOPMENT
DEPARTMENT DIRECTOR REVIEw:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration to continue the collaborative effort between the Housing and Redevelopment
Authority and Greater Metropolitan Housing Corporation to deliver housing programs and
services.
1. RECOMMENDED ACTION:
By Motion: Authorize the contract with the Greater Metropolitan
Housing Corporation to deliver housing programs and services.
I II. BACKGROUND I
The Greater Metropolitan Housing Corporation (GMHC) specializes in a variety of
housing programs and services. GMHC's partnership with the Richfield Housing
and Redevelopment Authority (HRA) began in 2004 and ensures a full offering of
housing programs and services for Richfield residents.
In 2007 GMHC provided 93 services to 54 Richfield residents through its Southside
HousingResource Center. Services offered include: home buyer information, loan
services (including Minnesota Housing Finance Agency loans), construction
consultations, energy assistance, mortgage foreclosure prevention, home
improvement information, and assistance with rental and emergency housing
Issues.
011408 GMHC Contract
The HRA also partners with GMHC on the New Home Program, as demonstrated
by the homes currently being constructed at 72nd Street and Nicollet Ave.
Additionally, GMHC developed the Senior Housing Regeneration Program where
they buy single family homes from seniors that need to sell, rehabilitate the home,
then sell the home to a first-time homebuyer. The first Richfield Senior
Regeneration home was sold in June 2007. A second Richfield Senior
Regeneration home is in the works.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. A partnership between the HRA and GMHC ensures comprehensive
rehabilitation resources available to Richfield residents.
· New opportunities are available because of the partnership in the area of
new and rehabilitated homes for modest income homeowners.
I B. CRITICAL ISSUES I
· Actions to support more remodeling activity and access to good advice
and financial capital are needed.
. With GMHC, Richfield homeowners receive the most comprehensive
support and program offerings in the most cost-effective manner.
. GMHC offers their packages of programs and services in 16 metro area
communities. Richfield needs to offer similar services to remain
com petitive.
I C. FINANCIAL I
. The cost of services in 2008 is $7,000.
. Resources are provided in the approved HRA budget in the Rehabilitation
Program.
I D. LEGAL I
. The contract is similar in form and content to the initial contract reviewed
by legal counsel.
I IV. ALTERNATIVE RECOMMENDATION(S) I
· The HRA can choose to modify the scope of services, modify the amount, or not
provide the services being proposed.
I V. ATTACHMENTS
. Agreement
I VI. PRINCIP AL PARTIES EXPECTED AT MEETING I
. Suzanne Snyder, GMHC Program Director
5D'"1
CONSULTANT SERVICES AGREEMENT
THIS IS AN AGREEMENT entered into the _ day of , 2008, by
and between the Richfield Housing and Redevelopment Authority hereinafter referred to
as the HRA, and the Greater Metropolitan Housing Corporation (GMHC), a nonprofit
corporation organized and existing under the laws of the State of Minnesota, hereinafter
referred to as the Consultant.
WITNESSETH:
WHEREAS, the HRA desires to hire the Consultant to render certain technical,
professional, and marketing assistance in connection with such undertakings of the
HRA.
NOW THEREFORE, the parties hereto do mutually agree as follows:
I. Scope of Services. The Consultant shall provide technical rehabilitation
advisory services, loan administration and fundraising for the Programs
as follows:
A. Provide HousingResource Center services, as directed
by the HRA, to residents of the City of Richfield out of its
Southside Minneapolis office with scheduled visits to
residences when needed and providing staff at City Hall
as needed. These services include the following:
1. Administer home improvement programs including the
MHFA Fix Up Fund, Community Fix Up Fund, the MHFA
Rental Rehab program and the MHFA Rehabilitation
Loan Program;
2. Provide construction management services including
home inspections to homeowners considering
rehabilitation, preparing scopes of work, educating
homeowners on the construction bid process, evaluating
bids and work completed to ensure quality and cost
effective renovations and monitoring the construction
process;
3. Provide housing information to residents including
information on emergency assistance, housing
rehabilitation, first time homebuyers and limited rental
information;
II. Term. This Agreement shall be effective from January 1, 2008 and
shall continue through December 31, 2008. This Agreement can
be terminated by either party with a 30-day notice.
50 -- d-
Ill. Compensation. The fee for services by the Consultant will be
$7,000. Payment of such fee shall be made by invoice from
GMHC.
IV Insurance. During the term of this Agreement, the Consultant shall
obtain and maintain workers compensation, comprehensive general
liability, and automobile liability insurance. Comprehensive general
liability insurance shall have an aggregate limit for $2,000,000.
Upon request by the HRA, the Consultant shall provide a certificate
or certificates of insurance relating to the insurance required.
V. Indemnification. Each party shall indemnify and hold harmless the
other party and it's officials, agents, and employees from any loss,
claim, liability, and expense (including reasonable attorney's fees
and expenses of litigation) arising out of any action of such parties
in the performance of this Contract.
VI. Assiqnment. This Agreement shall not be assigned, sublet, or
transferred without the written consent of the HRA.
VII. Conflict of Interest. The Consultant agrees to immediately alert the
Community Development Director of possible contractual conflicts
of interest in representing the HRA, as well as property owners or
developers on the same project. Conflicts of interest may be
grounds for termination of this Agreement.
5- fj-- 3
THIS AGREEMENT was adopted by the Richfield Housing and Redevelopment
Authority on the _ day of , 2008.
ATTEST:
RICHFIELD HOUSING AND
REDEVELOPMENT AUTHORITY
Its Executive Director
Its Chairperson
THIS AGREEMENT was accepted by Greater Metropolitan Housing Corporation on
the _ day of , 2008.
WITNESSES:
GREATER METROPOLITAN HOUSING
CORPORATION, a nonprofit Minnesota
Corporation
Its President
56--Y
STATE OF MINNESOTA )
)ss.
COUNTY OF HENNEPIN )
The following instrument was acknowledged before me this day of
,20_, by Steven L. Devich,Jhe Executive Director, of the
Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a
public body corporate and politic under the laws of Minnesota, on behalf of the HRA.
Notary Public
STATE OF MINNESOTA )
COUNTY OF HENNEPIN )
)ss.
The following instrument was acknowledged before me this day of
,20_, by , the Chairperson, of the Housing
and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body
corporate and politic under the laws of Minnesota, on behalf of the HRA.
Notary Public
STATE OF MINNESOTA )
COUNTY OF HENNEPIN )
)ss.
The following instrument was acknowledged before me this day of
, 20_, by Carolyn E. OlsonJ. the President, of Greater
Metropolitan Housing Corporation.
Notary Public
F:\Suzanne\Contracts\2008 Contracts
AGENDA ITEM # 5E
REpORT # 6
STAFF REpORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 14, 2008
REpORT PREPARED By:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
REpORT PRESENTER:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
DEPARTMENT DIRECTOR REVIEW:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of the issuance of a Certificate of Completion for Kensington Park.
I. RECOMMENDED ACTION:
By Motion: Approve the attached resolution, which authorizes the
execution of a Certificate of Completion for Kensington Park.
I II. BACKGROUND I
In August 2002 the Housing and Redevelopment Authority (HRA) entered into a
Contract for Private Development with Lyndale Gateway LLC. The purpose of the
contract was to provide for the redevelopment of the project known as Kensington
Park at 76th Street and Lyndale Avenue.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. Under Article IV Section 4.7 of the contract the HRA is obligated to
provide the Certificate of Completion (COC) when requested by the
Developer following completion of the project.
011408Kensington Park
lB. CRITICAL ISSUES I
. Construction of Kensington Place has been completed according to
the approved Concept Plans.
. Although the development has been completed for some time the
impetus for the request for the COC from the Developer is the sale of
the commercial space to The Sherlard Group (Sherlard). Sherlard is
metropolitan area based and owns considerable retail office and
residential property in this market area. The commercial space and
the surface parking lot will be sold to Shelard. Continued access to
the underground parking via the parking lot is provided by an
easement between the Homeowner's Association and the commercial
owner. That access easement is in perpetuity. Condo guest parking
on the surface parking lot will also be continued.
I C. FINANCIAL I
. The issuance of the COC has no impact on the HRA. However, the
sale will result in the satisfaction of a loan by the HRA to the
Developer in the amount of $500,000.
I D. LEGAL I
. HRA legal counsel has worked with the Developer's legal council to
bring this action before the HRA.
I IV. ALTERNATIVE RECOMMENDATION(S) I
. The HRA is required by virtue of the terms of the contract to issue the COC
when requested and the project is completed.
I V. A TT ACHMENTS
. Resolution
. Certificate of Completion
I VI. PRINCIP AL PARTIES EXPECTED AT MEETING I
. Colleen Carey, President Cornerstone Group
5[-1
HRA RESOLUTION NO.
AUTHORIZING ISSUANCE OF A CERTIFICATE OF COMPLETION FOR
KENSINGTON PARK
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) entered into contract with Lyndale Gateway, LLC for the
construction of the development known as Kensington Park; and
WHEREAS, Kensington Park has been completed under the terms of a Contract
for Private Development as amended and supplemented.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield, that the Certificate of Completion may be
issued.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 14th day of January 2008.
, Chairperson
ATTEST:
, Secretary
5 ~~ ;L
CERTIFICATE OF COMPLETION
The undersigned hereby certifies that Lyndale Gateway, LLC, a Minnesota limited
liability company, has fully and completely complied with its obligations under Article IV of that
document (described in that certain Memorandum of Development Agreement dated
September 25, 2003, filed as Document No. 8215340 in the Office of the County Recorder for
Hennepin County, Minnesota, and filed December 5, 2003, as Document No. 3888218 in the
Office of the Registrar of Titles for Hennepin County, Minnesota) entitled Contract for Private
Development, dated August 5, 2002, as amended and supplemented by a Supplemental
Agreement to Contract for Private Redevelopment, dated February 26, 2003, and as amended
and restated by a First Amended and Restated Contract for Private Development, dated August
18, 2003, (collectively the "Development Agreement") between the Housing and Redevelopment
Authority in and for the city of Richfield, Minnesota, a Minnesota public body of corporate and
politic, with respect to the tract of land described in the attached Schedule A, in accordance with
the requirements of such document, and this Certificate shall be deemed conclusive evidence of
the satisfaction and termination of the agreements and covenants in Article IV of the
Development Agreement.
DATED:
LYNDALE GATEWAY
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY
OF RICHFIELD
By
Its
By
Its Chairperson
By
Its Executive Director
MEBB #558420v2
5 f-- 3
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of , 2008, by
Colleen M. Carey, the Chief Manager of Lyndale Gateway, LLC, a Minnesota limited liability
company, on behalf of the company.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of , 2008, by
, the of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate
and politic, on behalf ofthe Authority.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of , 2008, by
, the of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate
and politic, on behalf of the Authority.
Notary Public
MEBB #558420v2
5~~L{
Schedule A
Legal Description
The real property situated in the County of Hennepin, State of Minnesota, legally described as
follows:
RETAIL PROPERTY
Parcel 1:
Tract E, Registered Land Survey No. 1747, Hennepin County, Minnesota
Parcel 2:
Tract G, Registered Land Survey No. 1747, Hennepin County, Minnesota
Parcel 3:
Tract H, Registered Land Survey No. 1747, Hennepin County, Minnesota
Parcel 4:
Tract I, Registered Land Survey No. 1747, Hennepin County, Minnesota
Parcel 5:
Tract J, Registered Land Survey No. 1747, Hennepin County, Minnesota
Parcel 6:
Tracts Band C, Registered Land Survey No. 1758, Hennepin County, Minnesota
(Torrens Property, Certificate of Title No. 1193445)
RESIDENTIAL PROPERTY
The following Units which are part of Common Interest Community No. 1416, Kensington Park:
Units 100, 101, 105, 107, 108, 109, 111, 113, 115, 117, 119,
200,201,202,203,204,205,207,208,209,210,211,212, 213, 214, 215, 216, 217, 218, 219,
220,222,224,226,228,230,232,234,240,
300,301,302,303,304,305,306,307,308,309,310,311, 312, 313, 314, 315, 316, 317, 318,
319,320,322,324,326,328,330,332,334,340,
400,401,402,403,404,405,406,407,408,409,410, 411,412, 413, 414, 415, 416, 418, 419,
420,422,424,426,428,430,432,434,440,
7619, 7621, 7623, 7625, 7627, 7629, 7631, 7633, 7635, 7637, 7639, 7641, 7643, 7645.
3527147v2
MEBB #558420v2
AGENDA ITEM # SF
REpORT # 7
STAFF REpORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 14, 2008
REpORT PREPARED By:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
REpORT PRESENTER:
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED By EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of the termination of the Option Agreement for Kensington Park.
1. RECOMMENDED ACTION:
By Motion: Consider the adoption of a resolution authorizing the
termination of the Option Agreement for Kensington Park.
I II. BACKGROUND I
The Housing and Redevelopment Authority (HRA) entered into a contract with
Lyndale Gateway, LLC for the development of Kensington Park in August 2002.
Subsequently in August 2003 the First Amended and Restated Contract for Private
Redevelopment was approved by the HRA. The amended document contained an
Exhibit C Option Agreement. The Option Agreement provided that the HRA could
purchase the land and plans and specifications and related documents for the
construction of Kensington Park should the Developer be unable to close on a
construction financing loan. The Option Agreement was not exercised as the
Developer obtained the construction financing.
011408 Option Kensington Park
SF-{
HRA RESOLUTION NO.
AUTHORIZING THE TERMINATION OF THE OPTION AGREEMENT FOR
KENSINGTON PARK
WHEREAS, the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota (HRA) entered into a Contract for Private Development as amended
and supplemented (Contract) with Lyndale Gateway, LLC for the construction of
Kensington Park; and
WHEREAS, Exhibit C to the Contract was an Option Agreement; and
WHEREAS, the construction of Kensington Park has been completed under the
terms of a Contract for Private Development as amended and supplemented.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority in and for the City of Richfield, the Option Agreement is hereby terminated.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 14th day of January 2008.
, Chairperson
ATTEST:
, Secretary
011408 Option Kensington Park
5F-~
Termination of Option Agreement
FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree that that certain Option Agreement, dated
September _, 2003, and attached as Exhibit C to the Contract for Private Development which
was memorialized by that certain Memorandum of Development Agreement, dated
September 25, 2003, recorded in the office of the Hennepin County Recorder on November 5,
2003 as Document No. 8215345, and filed in the office of the Hennepin County Registrar of
Titles on December 5, 2003, as Document No. 3888218 (the "Option"), and pertaining to the real
property legally described on Exhibit A attached hereto, is hereby terminated. Neither party shall
hereafter have any right, interest or obligation under or pursuant to said Option.
IN WITNESS WHEREOF, the parties hereto have set their hands the day and year first
above written.
L YNDALE GATEWAY, LLC
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, MINNESOTA
By:
Its:
By:
Its:
By:
Its:
#558428v2
5F~3
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of , 2008, by
Colleen M. Carey, the Chief Manager of Lyndale Gateway, LLC, a Minnesota limited liability
company, on behalf of the company.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of , 2008, by
, the of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate
and politic, on behalf of the Authority.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of , 2008, by
, the of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate
and politic, on behalf of the Authority.
Notary Public
2
5F~ ~'
Exhibit A
Legal Description
The real property situated in the County of Hennepin, State of Minnesota, legally described as
follows:
RETAIL PROPERTY
Parcel 1:
Tract E, Registered Land Survey No. 1747, Hennepin County, Minnesota
Parcel 2:
Tract G, Registered Land Survey No. 1747, Hennepin County, Minnesota
Parcel 3:
Tract H, Registered Land Survey No. 1747, Hennepin County, Minnesota
Parcel 4:
Tract I, Registered Land Survey No. 1747, Hennepin County, Minnesota
Parcel 5:
Tract J, Registered Land Survey No. 1747, Hennepin County, Minnesota
Parcel 6:
Tracts Band C, Registered Land Survey No. 1758, Hennepin County, Minnesota
(Torrens Property, Certificate of Title No. 1193445)
RESIDENTIAL PROPERTY
The following Units which are part of Common Interest Community No. 1416, Kensington Park:
Units 100, 101, 105, 107, 108, 109, 111, 113, 115, 117, 119,
200,201,202,203,204,205,207,208,209,210,211,212, 213, 214, 215, 216, 217, 218, 219,
220,222,224,226,228,230,232,234,240,
300,301,302,303,304,305,306,307,308,309,310,311, 312, 313, 314, 315, 316, 317, 318,
319,320,322,324,326,328,330,332,334,340,
400,401,402,403,404,405,406,407,408,409,410,411, 412, 413, 414, 415, 416, 418, 419,
420,422,424,426,428,430,432,434,440,
7619, 7621, 7623, 7625, 7627, 7629, 7631, 7633, 7635, 7637, 7639, 7641, 7643, 7645.
3527146v2
3
AGENDA ITEM # 5G
REpORT # 8
STAFF REpORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 14,2008
REpORT PREPARED By:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
REpORT PRESENTER:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW: Er
REVIEWED BY EXEcmwE DIRECTOR: ~""2~'")
ITEM FOR HRA CONSIDERATION:
Consideration of the approval of the form of a Mortgagee Satisfaction and its execution; for
Kensington Park.
I. RECOMMENDED ACTION:
By Motion: Approve the form of the Mortgage Satisfaction in
substantially the form as the attached and its execution by the
Executive Director and Chair delivery to the Housing and
Redevelopment Authority legal counsel and exchange of the
Satisfaction for full payment of the $500,000 loan.
I II. BACKGROUND I
The commercial space at Kensington Park is being sold by the Developer to The
Shelard Group. A loan made by the Housing and Redevelopment Authority (HRA)
to the Developer to support Kensington Park redevelopment will be satisfied. The
loan satisfaction is $500,000.
I III. BASIS OF RECOMMENDATION
I A. POLICY
011408 Mortgage Kensington Park
. As part of the Contract with the Developer the HRA agreed to provide
a portion of the financing. The Developer is required to satisfy the
mortgage loan upon sale.
I B. CRITICAL ISSUES I
. In return for the payment of $500,000 the Developer will expect to
receive a Mortgage Satisfaction document.
I C. FINANCIAL I
. The proceeds from the Satisfaction will be deposited in an HRA
account. It is important to note that there are restrictions on the use of
these funds. They may not be used to pay staff costs. The loan bears
interest at 5% and is paid from the TIF available at the time of
decertification of the project in 2029 or earlier should the cash flow
make that possible.
I D. LEGAL I
. HRA legal counsel has been working with the Developer's attorney.
Legal counsel requested approval by the HRA of both the form of the
Satisfaction and the process for exchanging the Mortgage Satisfaction
for the payment. At this writing the mortgage payment date has not
been determined. With the process described in the "Recommended
Action" legal counsel will have the flexibility to meet the timing needs
of the Developer.
. It may be necessary to make minor modifications to the form of the
satisfaction, thus the wording in the suggested motion, "in
substantially the form as the attached."
I IV. ALTERNATIVE RECOMMENDATION(S) I
. Modify the process described in "Recommended Action".
I V. ATTACHMENTS
. The form of the Mortgage Satisfaction.
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING I
. Colleen Carey, President Cornerstone Group
. John Dean, HRA legal counsel
5'&-1
SATISFACTION OF MORTGAGE
KNOW ALL BY THESE PRESENTS, that that certain Mortgage, dated September 25, 2003 and
recorded in the office of the Hennepin County Registrar on November 5,2003, as Document No.
3888219, executed by Lyndale Gateway, LLC, a Minnesota limited liability company, as
borrower, in favor of the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota, a Minnesota body corporate and politic, as lender, is fully paid and satisfied.
IN WITNESS WHEREOF, the undersigned has caused this satisfaction to be executed this
_ day of ,2008.
HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, MINNESOTA
By:
Its:
By:
Its:
5 &~d-..
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of , 2008, by
, the of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate
and politic, on behalf of the Authority.
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF )
The foregoing instrument was acknowledged before me this _ day of , 2008, by
, the of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate
and politic, on behalf of the Authority.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Winthrop & Weinstine, P .A.
Suite 3500
225 South Sixth Street
Minneapolis, MN 55402
(612) 604-6400
3588754vl
-2-
AGENDA ITEM # 5H
REpORT # 9
STAFF REPORT
HOUSING AND REDEVELOJ .T
AUTHORITY MEETINi ;i>
. I ':.J, \
JANUARY 14, 2007[ /j,
~../
REPORT PREPARED By:
VANESSA HAIGHT, HOUSING SPECIALIST
NAME, TITLE
REpORT PRESENTER:
BRUCE P ALMBORG, COMMUNITY
DEVELOPMENT DIRECTOR
DEPARTMENT DIRECTOR REVIEw:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR:
.,;,
ITEM FOR BRA CONSIDERATION:
Consideration of a contact with Frattalone Companies for demolition at 6744 Blaisdell Avenue.
1. RECOMMENDED ACTION:
By Motion: Approve the attached Contract for Demolition with
Frattalone Companies for demolition at 6744 Blaisdell Avenue.
I II. BACKGROUND I
In October of 2007 the Housing and Redevelopment Authority (HRA) acquired 6744
Blaisdell Avenue for a New Home project. Twin Cities Habitat for Humanity (HFH)
plans to purchase the property after the existing building is demolished. Conceptual
building plans and a contract for redevelopment will be presented to the HRA in
early 2008, prior to the sale to HFH.
HRA staff solicited bids for demolition from three companies: S.R. Stevens
Excavating, Inc. ,Frattalone Companies, and Doboszenski & Sons. S.R. Stevens
Excavating was unable to submit a bid. Frattalone Companies submitted the lowest
bid at $12,900.
011408 Demo Contract - 6744 Blaisdell
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The HRA has demonstrated success through its New Home program in
removing housing in poor conditions and providing affordable
replacement housing for families.
. In the past, the HRA has often demolished the existing home prior to
selling the property to a non-profit developer.
I B. CRITICAL ISSUES I
. Demolition must occur before HFH will acquire the property. HFH
plans to acquire the property in early 2008, after conceptual plans and
a contract for redevelopment is approved by the HRA.
. If the contract is approved, demolition will occur by the end of January.
. The remaining hole will be filled and the site will be leveled for safety
and aesthetic reasons.
I C. FINANCIAL I
. The cost for demolition is $12,900.
. HFH will purchase the land for the cost of demolition.
I D. LEGAL I
. Legal counsel drafted the Contract for Demolition and approved of
slight modifications.
I IV. ALTERNATIVE RECOMMENDATION(S) I
. Do not approve the Contract for Demolition.
I V. A TT ACHMENTS
. Contract for Demolition.
I VI. PRINCIP AL PARTIES EXPECTED AT MEETING
. N/A
5/-1 -I
CONTRACT FOR DEMOLITION OF 6744 Blaisdell Ave S
THIS CONTRACT is made and entered into this _day of ,200_, by and
between Frattalone Companies (the "Contractor") and the Housing and Redevelopment
Authority in and for the City of Richfield, State of Minnesota (the "HRA") (collectively, the
"Parties"), for the demolition of buildings and abatement of hazardous substances and materials
of the property located at 6744 Blaisdell Ave S, Richfield, MN 55423.
RECITALS
WHEREAS, the HRA requires the demolition of buildings at 6744 Blaisdell Ave S
including among other items, the abatement of hazardous substances and materials (the "Work").
WHEREAS, the HRA has awarded the Work to the Contractor;
WHEREAS, the Contractor represents that it has the necessary personnel, experience,
competence, and legal right to perform the Work;
NOW, THEREFORE, in consideration of the mutual obligations of the Parties hereto,
each of them does hereby covenant and agree as follows:
Section 1.
Definitions
"Asbestos" means any material containing more than one percent asbestos, which is friable,
releasing asbestos fibers into the air, above current levels established by the United States
Occupational Safety and Health Administration.
"Contract" or "Agreement" means this agreement between the HRA and Contractor for the
performance of the Work, together with all exhibits, amendments, or modifications to the
Contract.
"Destructive Report" means a hazardous materials abatement inventory prepared to assist in
establishing the scope of the Work.
"Final Completion" means all items of the Work, "punch list items" and site work are completed
and Contractor is eligible for Final Payment.
"Hazardous Materials" means asbestos, PCBs, petroleum hazardous waste, radioactive material,
or any other hazardous materials or hazardous wastes within the meaning of City, State of
Minnesota, or Federal definitions of hazardous materials or hazardous waste.
"Owner" means the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota.
"Property" means 6744 Blaisdell Ave S, Richfield, MN 55423.
314396v2 MTN RC125-1
5 H'~ 2-
"Substantial Completion" means the time at which the HRA determines that the Work has
progressed to a point where it is sufficiently complete, leaving only minor "punch list" and close
out items and other minor site work required to be completed for full payment of the contract
pnce.
"Work" means the entire completed demolition, abatement of hazardous materials, and all other
activities to be performed by Contractor on the Property as provided for in the Contract.
Section 2.
General Requirements
2.1. Rights of the HRA. The HRA and the City reserve the right to reject any or all
proposals or parts of proposals, to accept part or all of proposals on the basis of
considerations other than lowest cost, and to create a project of lesser or greater expense
and reimbursement than described in this Contract. The HRA also reserves the right to
cancel the Contract without penalty, if circumstances arise which prevent the HRA from
completing the project. In the event of any conflict between the General Conditions and
this Contract, this Contract shall control.
2.2. Interest of Members of City or HRA. The Contractor agrees that no member of
the governing body, officer, employee, or agent of the City or the HRA shall have any
interest, financial or otherwise, direct or indirect, in the Contract.
2.3. Equal Opportunity Statement. Contractor agrees to comply with the provisions of
all applicable federal, state, and City of Richfield statutes, ordinances, and regulations
pertaining to civil rights and nondiscrimination including without limitation Minnesota
Statutes, Section 181.59 as amended, incorporated herein by reference.
2.4. Transfer of Interest. The Contractor shall not assign any interest in the Contract,
and shall not transfer any interest in the same either by assignment or novation, without
the prior written approval of the HRA, provided, however, that claims for money due or
to income due to the Contractor may be assigned to a bank, trust company, or other
financial institution, or to a Trustee in Bankruptcy without such approval. Notice of any
such assignment or transfer shall be furnished to the HRA. Notwithstanding the
foregoing, Contractor shall be 'entitled to use subcontractors to perform the Work.
2.5. Independent Contractor. Nothing contained in this agreement is intended to, or
shall be construed in any manner, as creating or establishing the relationship of
employer/employee between the parties. The Contractor shall at all times remain an
independent contractor with respect to the services to be performed under this agreement.
The HRA shall be exempt from payment of all Unemployment Compensation, FICA,
retirement, life and/or medical insurance and Workers Compensation Insurance as the
Contractor is an independent contractor.
2.6. Hold Harmless. The Contractor agrees to defend, indemnify and hold harmless
the HRA and the City, its officers and employees, from any liabilities, claims, damages,
314396v2 MTN RC125-1
2
5 J--\ r- ~
costs, judgments, and expenses, including attorney's fees, resulting directly or indirectly
from an act or omission of the contractor, its employees, its agents, or employees of .
subcontractors, in the performance of the services provided by this contract or by reason
of the failure of the contractor to fully perform, in any respect, all of its obligations under
this Contract.
2.7. Accounting Standards. The Contractor agrees to maintain the necessary source
documentation and enforce sufficient internal controls as dictated by normally accepted
accounting practices to properly account for expenses incurred under this contract.
2.8. Retention of Records. The Contractor shall retain all records pertinent to
expenditures incurred under this Contract for a period of three years after the resolution
of all audit findings. Records for non-expendable property acquired with funds under this
contract shall be retained for three years after final disposition of such property.
2.9. Disclosure. The Contractor agrees to comply with the Minnesota Government
Data Practices Act, Minnesota Statutes, Chapter 13, and all other applicable state and
federal laws relating to data privacy or confidentiality, as those laws may be amended.
The Contractor shall immediately report to the HRA any requests from third parties for
information relating to this agreement. All data created, collected, received, stored, used,
maintained, or disseminated by the Contractor in performing its obligations is subject to
the requirements of the Act, and the Contractor must comply with those requirements as
if it were a government entity. The HRA agrees to promptly respond to inquiries from
the Contractor concerning data requests. The Contractor agrees to hold the City and the
HRA, its officers, department heads and employees harmless from any claims resulting
from the Contractor's failure to disclose data maintained by the Contractor and
authorized for release by the HRA, and from Contractor's unlawful disclosure or use of
data protected under state and federal laws.
Section 3.
Contract Price
3.1. Upon compliance with all the requirements of this Contract, Contractor shall be
paid the Contract Price of$12,900.00, pursuant to Section 28 of this Contract.
Section 4.
Project Schedule
4.1. Contractor shall commence the Work on or after contract execution and
Substantial Completion of the Work shall be achieved no later than March 1,2008.
Section 5.
Local Permit Requirements and Related Submittals
5.1. Contractor shall obtain permits required by the City of Richfield, including a
plumbing permit (for water & sanitary sewer disconnects) and a demolition permit.
Questions about these permits, permit fees, and the scheduling process for the required
inspections should be directed to the Building Inspections Department at Richfield City
Hall (612-861-9816). Contractor (has) (has not) been provided a copy of an abatement
314396v2 MTN RCJ25-J
3
5/-1 -- Lt
hazardous materials inventory ("Destructive Report"). The Destructive Report is not
intended by the HRA to limit the activities of the Contractor, but to assist the Contractor
in assessing the scope of the Work for purposes of complying with its obligations under
this Agreement.
5.2. No less than 2 days prior to beginning the Work, the Contractor shall provide:
- Description of proposed dust and noise control measures for the Property.
5.3. Upon completion of the Work, Contractor shall provide:
- Copies of any permits required by government agencies other than the City
of Richfield, such as transport or disposal permits.
- Copies of any test results required by government agencies other than the
City of Richfield, including but not limited to testing required as part of the
asbestos abatement process.
- Copies of all landfill records indicating receipt and acceptance of hazardous
wastes by a landfill licensed to accept hazardous wastes.
Section 6.
Job Conditions - General
6.1. Contractor will disconnect and abandon utilities serving the Property, including
water, sanitary sewer, electricity, gas and telecommunications; or arrange for
disconnection and abandonment of same. Contractor shall not begin work before field-
verifying that disconnection and abandonment has been completed.
6.2. Owner shall ensure that the buildings will be vacated and use of the property will
be discontinued prior to start of work.
6.3. Owner assumes no responsibility for actual condition of structures to be
demolished. Conditions existing at time of inspection for bidding purposes will be
maintained by Owner to the extent practicable. Contractor may salvage any and all
materials and equipment from the Property. Variations within structures may occur due
to removal and salvage operations prior to the start of demolition work.
6.4. This is a lump sum contract. Contractor must immediately contact Owner prior to
exceeding the Contract Price set out in Section 3.1. Change orders for additional
payment will not be granted due to the Contractor underestimating quantities of
material(s).
6.5. Contractor shall provide all labor, materials, equipment, employee trammg,
compliance with all regulations, permits, notifications, licenses and agreement necessary
to perform the work described in this Contract.
314396v2 MTN RC125-1
4
5H~5
6.6. All materials from undertaking the Work shall become the property and
responsibility of the Contractor.
6.7. Contractor may choose to salvage materials and equipment. Any salvaged items
must be removed from the Property ina timely manner as they are salvaged. On site
storage or sale of salvaged items is prohibited.
6.8. The use of explosives and on site burning by the Contractor are prohibited.
6.9. Contractor shall provide water, electricity, communications and toilet facilities on
site as necessary to complete the work.
6.10. Contractor shall provide and maintain uninterrupted vehicular access to the
Property, including temporary demolition facilities, storage and work areas, for not only
persons and equipment involved in the project but also emergency vehicles.
6.11. Contractor shall keep fire hydrants and water control valves free from obstruction
and accessible for use.
6.12. Contractor shall take all necessary safeguards to prevent damage or injury to
neighboring property.
6.13. Prior to closing or rerouting existing traffic lanes or sidewalks in any public street
easement or right-of-way adjacent to streets, the Contractor shall obtain written
permission from the City Engineer. Expenses related to lane closures, including but not
limited to traffic barriers, signs and similar equipment as well as traffic control personnel,
shall be the responsibility of the Contractor.
Section 7.
Asbestos Abatement
7.1. Contractor shall remove and properly dispose of all friable and category 2 non-
friable asbestos containing materials and complete asbestos abatement on the Property in
accordance with Minnesota Pollution Control Agency regulations and the Destructive
Report identified in Section 5.1 of this Contract.
7.2. Contractor shall decontaminate and encapsulate. the work area pnor to final
clearance and air monitoring.
7.3. Contractor shall provide final cleanup and removal of all remaining temporary
barriers, equipment and supplies.
7.4. Contractor shall provide all monitoring and analysis of air samples as required by
state and federal regulations.
7.5. Contractor shall complete final clearance and air monitoring as required by state
and federal regulations.
314396v2 MTN RC125-1
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Section 8.
Other Hazardous Materials Abatement
Pursuant to Minnesota Pollution Control Agency regulations (and the Destructive Report),
Contractor shall remove and properly dispose of the following materials and items from the
Property:
8.1. Mercury:
a. Batteries: Smoke detectors, emergency lighting, exit sIgns, security
systems and alarms.
b. Lighting: Fluorescent lights and bulbs; high intensity discharge lights
(metal halide, high pressure sodium, mercury vapor and neon); switches
and controls for lighting.
c. Heating, Ventilating and Air Conditioning Systems: controls, devices,
thermostats, aquastats, pressurestats, firestats, manometers, thermometers.
d. Boilers, Furnaces, Heaters and Tanks: Mercury flame sensors by pilot
lights; manometers, thermometers, gauges, pressure-trol, float and level
controls, space heater and unit ventilator controls.
e. Electrical systems: Load meters and supply relays, phase splitters,
microwave relays and mercury displacement relays.
f. Miscellaneous: All vacuum, pressure, fluid level, temperature and flow
rate control boxes and panels.
g. Any electrical wiring from fixtures or equipment being removed for
abatement shall be capped.
8.2. Poly-Chlorinated Biphenyls (PCBs): Transformers, transistors, capacitors, heat
transfer equipment, light ballasts.
8.3. Chlorofluorocarbons (CFCs) and Hydrochlorofluorocarbons (HCFCs): Fire
extinguishers, air conditioners, walk-in coolers and freezers, water fountains and
dehumidifiers, refrigerators/freezers/chillers, and heat pumps.
8.4. Miscellaneous:
a.
b.
c.
d.
Hazardous waste including general-purpose cleaners, paints and thinners.
Oils including used oil and hydraulic oil in door closers.
Water heaters.
Space heaters.
Air compressors and controls.
Building unit ventilators.
e.
f.
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g. Radiators.
h. Fuse boxes and electrical panels.
1. Roof top exhaust vents with motors.
J. Boiler chemicals.
k. Heating fuel tank, including contents, if any.
Section 9.
Demolition
9.1 Owner has not conducted any testing to determine the extent of lead based paint.
Contractor shall conduct demolition in complianc.e with any state or federal regulations
governing demolition of structures containing lead based paint.
9.2. Contractor shall use water sprinkling, temporary enclosures and other suitable
methods to limit dust and dirt rising and scattering in air. Contractor shall comply with
any and all governing regulations pertaining to environmental protection. Contractor
shall not use water when it may create hazardous or objectionable conditions such as
flooding or pollution.
9.3. Contractor shall clean adjacent structures and improvements of dust, dirt and
debris caused by demolition operations and return adjacent areas to condition existing
prior to start of work.
9.4. Contractor shall demolish buildings, other structures, improvements, and
landscaping completely and remove all debris from the Property. Contractor may use
such methods as required to complete the work subject to the limitations of governing
regulations.
9.5. Contractor shall proceed with demolition in a systematic manner, from top of
structures to ground, and will complete demolition work above each floor or tier before
disturbing supports on lower levels.
9.6. Contractor shall locate demolition equipment throughout the building and remove
materials so as to not impose excessive loads to supporting walls, floor or framing.
9.7. Contractor shall provide and maintain interior and exterior shoring, bracing or
other structural support to preserve structural stability and prevent movement, settlement
or collapse of the building.
9.8. Contractor shall break up any concrete slabs-on-grade and remove from the
Property.
9.9. Contractor shall demolish footings, foundation walls, tunnels and other below-
grade structures and remove from the Property.
9.10 Contractor shall provide certificate of well abandonment if required.
314396v2 MTN RC125-1
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Section 10. Debris Control
10.1. Contractor shall maintain the Property free of extraneous debris.
10.2. Contractor shall prohibit overloading of trucks to prevent spillage on access and
haul routes.
10.3. Contractor shall maintain a sweeping and clean-up program to prevent deposition,
release and disbursal of soils and debris onto paved surfaces.
Section 11. Disposal
11.1. Contractor shall move from the Property all debris, rubbish and other materials
resulting from demolition operations.
11.2. Contractor shall transport materials from the Property and legally dispose of them
off-site in accordance with governing regulations.
Section 12. Earthwork
12.1. Contractor shall rough grade the Property using clean fill after completing all
abatement and demolition activities; taper edges of all excavated areas to
minimize slope of 2 to 1, keeping soil disturbance to a minimum.
Section 13. Excusable Delays
13.1. The following circumstances, and only these circumstances, will, at the HRA's
discretion, be considered legitimate cause for a change in the commencement and/or
completion dates specified in Section 4 of this Agreement:
a.
Material delay -- material delays that are beyond the control of the
Contractor, which can be shown to have directly caused the overall late
completion.
b.
Adverse weather and emergency conditions -- weather or emergency
conditions that directly affect the scheduling of exterior work over a
significant portion of the term of this Agreement.
c.
Strikes -- Contractors who face union work stoppage in the case where
they have to rely on such a work force in order to complete the Work.
d.
Amendments -- amendments in the original scope of work, which can be
reasonably shown to require an extension of the time allowed for
completion.
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e. Other delays - act or neglect of the Owner, or of an employee of either, or
of a separate contractor employed by the Owner, or by changes ordered in
the Work or by unavoidable casualties or other causes beyond the
Contractor's control.
Section 14. Change Order
14.1. The HRA shall have the right, within the general scope of the Work and without
notice to any surety or sureties of the Contractor, if any, to make changes in the Work,
either by altering the nature of the same or by adding to or deducting from it. All changes
shall, except in the case of emergencies endangering the safety of persons or property, be
made by written Change Order. The parties shall determine the effect of any Change
Order on the Contract Price and project schedule by mutual agreement. The Contractor
shall promptly comply with any and all written Change Orders. No such Change Order
shall be deemed to invalidate the remaining terms and conditions contained in the
Contract.
Section 15. Waiver of Liability
15.1 It is agreed that the Work is undertaken at the sole risk of the Contractor. The
Contractor does expressly forever release the HRA and the City of Richfield from any
claims, demands, injuries, damage actions, or causes of action whatsoever, arising out of
or connected with the Work.
Section 16. Indemnification
16.1. Any and all claims that arise or may arise as a consequence of any act or omission
on the part of the Contractor, its agents, servants, or employees while engaged in the
performance of the Work shall in no way be the obligation or responsibility of the HRA
or the City of Richfield. The Contractor shall indemnify, hold harmless, and defend the
HRA and the City of Richfield, its commissioners, council members, officers, employees,
successors, and assigns against any and all liability, loss, cost, damages, expenses, claims,
or actions, including attorney's fees which the HRA and the City of Richfield, its
commissioners, council members, officers, or employees may hereinafter incur or be
required to pay on account of injury to or death of any person or persons or damage to
any property arising out of or by reason of any act or omission of the Contractor, its
agents, servants, or employees in the execution, performance, or failure to adequately
perform its obligations under this Agreement, whatever the cause of such injuries or
damage.
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Section 17. Insurance
17.1. The Contractor agrees that in order to protect itself, the HRA, and the City of
Richfield under the indemnity provisions set forth in Section 16 of this Agreement, it will
at aU times during the term of this Agreement, maintain, at a minimum, the following
insurance policies:
a. Workers Compensation Insurance. The Contractor shall maintain worker's
compensation insurance in compliance with all applicable statutes
including Chapter 176 of the Minnesota Statutes. Such policy shall
include Employer's Liability Coverage and at least such amount(s) as are
customarily provided in worker's compensation policies issued in
Minnesota. Contractor further agrees to require all subcontractors and
independent contractors to maintain worker's compensation insurance in
compliance with all applicable statutes and to monitor the compliance of
such subcontractors and independent contractors with the applicable
statutes.
b. Commercial General Liability Insurance. The Contractor shall maintain
Occurrence Based Commercial General Liability Insurance ("CGL"),
providing coverage on an "occurrence", rather than on a "claims made"
basis, which policy shall include coverage for the Completed Operations
Hazard, and which shall also include a Broad Form General Liability
Endorsement, ISO number GL 0404, or an equivalent form (or forms), so
long as such an equivalent form (or forms) affords coverage which is in all
material respects at least as broad. Any equivalent form (or forms) of
coverage shall be approved by the HRA.
The Contractor agrees to maintain total liability policy limits of at least
One Million Dollars ($1,000,000), applying to liability for Bodily Injury,
Personal Injury, and Property Damage, which total limits may be satisfied
by the limits afforded under its Occurrence Based CGL policy as specified
above, or by such policy in combination with the limits afforded by an
Umbrella Liability Policy (or policies) provided, however, that the
coverage afforded under any such Umbrella Liability Policy shall be at
least as broad as that afforded by the underlying occurrence based CGL
Policy as specified above.
c.
Automobile Liability Insurance. The Contractor shall maintain automobile
liability insurance covering liability for Bodily Injury and Property
Damage arising out of the ownership, use, maintenance, or operation of all
owned, non-owned, and hired automobiles and other motor vehicles. Such
policy shall provide total liability limits for combined Bodily Injury and/or
Property Damage in the amount of at least One Million Dollars
($1,000,000) per accident, which total limits may be satisfied by the limits
afforded under such policy, or by such policy in combination with the
314396v2 MTN RC125-1
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limits afforded by an Umbrella Liability Policy (or policies) provided,
however, that the coverage afforded under any such Umbrella Liability
Policy shall be at least as broad as that afforded by the underlying
automobile liability insurance policy.
The HRA and the City of Richfield shall be named as "additional insured" parties with
respect to the insurance policies specified in (b) and (c) above. The Contractor shall not
commence work until a Certificate of Insurance evidencing all of the insurance policies
required above is approved and a written Notice to Proceed is issued by an authorized
representative of the BRA. The HRA shall, at any time during the term of this
agreement, have the right to require that the Contractor secure any additional insurance,
or additional feature to existing insurance, as the HRA may reasonably require for the
protection of its interests or those of the public. It is expressly understood that the HRA
does not in any way represent that the minimum insurance coverage set forth in this
paragraph is sufficient or adequate to protect the interest or liabilities of the Contractor.
Section 18. Bond
18.1. No payment or performance bonds for the Work shall be required pursuant to
Minn. Stat. S 574.26. (Option to require bonds.)
Section 19. Lien Waiver
19.1. N either the Contractor nor any subcontractor or other person or entity furnishing
labor, equipment, or materials in connection with the Work shall file any mechanic's lien
against the HRA's buildings, structures or land or any part thereof, provided that the HRA
makes all payments due to Contractor under this Contract. The Contractor shall protect,
defend, indemnify, and hold harmless the HRA and the City of Richfield from any and all
claims, demands, or actions of whatever nature arising out of work, labor, equipment, or
materials furnished by the Contractor or its subcontractors in connection with the Work,
provided that the HRA makes all payments due to Contractor under this Contract.
Payment of the Contract Price shall not be due until the Contractor has delivered to the
HRA lien waivers acceptable to the HRA, which release the HRA from all liens that may
arise in connection with the Work. The Contractor shall list on the attached Exhibit A the
names of all suppliers and/or subcontractors that will provide materials, services, or labor
in connection with the Work. The Contractor will notify the HRA of any changes in this
list prior to the commencement of the Work.
314396v2 MTN RC125-1
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Section 20.
Subcontractors
20.1.
Contractor agrees to bind every subcontractor by the terms, conditions, and
provisions set forth in the Contract that are applicable to the subcontractor's work,
unless otherwise specifically agreed otherwise in writing by the HRA.
HRA may review and accept/deny all subcontractors.
Contractor shall confirm that all subcontractors used have the necessary
certifications and qualifications required to complete the Work specified in this
Contract.
20.2.
20.3.
Section 21.
Assignment
21.1. This Contract shall be binding upon the Contractor, its legal representatives, heirs,
successors, and assigns. No assignment or attempted assignment of this Contract or any
rights hereunder shall be effective unless the written consent of the HRA is first obtained.
No such assignment, even if consented to by the HRA, shall relieve the Contractor from
liability under this Contract for the performance and completion of the Work in
accordance with the Contract. Notwithstanding the foregoing, Contractor shall be
entitled to use subcontractors to perform the Work.
Section 22. Entire Agreement
22.1. The Contract contains all the terms, conditions, and provisions. pertaining to the
Work to be completed by the Contractor, there being no other understandings,
agreements, or warranties, express or implied. All prior negotiations and dealings
regarding the subject matter of the Agreement are superseded by and merged into the
Contract.
Section 23. Applicable Law
23.1. This Contract shall be construed in accordance with and governed by the laws of
the state of Minnesota.
Section 24. Amendment
24.1. This Contract may be modified or amended only with the written approval of the
HRA and the Contractor.
Section 25. Construction
25.1. In the event that anyone or more of the provisions of this Contract, or any
application thereof, shall be found to be invalid, illegal, or otherwise unenforceable, the
validity, legality, and enforceability of the remaining provisions or any application
thereof shall not in any way be affected or impaired thereby.
Section 26. Authority
314396v2 MTN RC125-1
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26.1. Each of the undersigned parties warrants that it has the full authority to execute
this Contract, and each individual signing this Contract on behalf of a corporation hereby
warrants that he or she has full authority to sign on behalf of the corporation and that he
or she represents and binds such corporation thereby.
Section 27. Waiver
27.1. No failure by the HRA to insist upon the strict performance of any covenant, duty,
agreement, or condition contained in this Agreement or to exercise any right or remedy
consequent upon a breach thereof shall constitute a waiver of any such breach or any
other covenant, agreement, term, or condition, nor does it imply that such covenant,
agreement, term, or condition may be waived again.
Section 28. Payments to Contractor and Completion
28.1. The Contractor shall be paid upon completion of the Work in accordance with the
payment schedule of the HRA, if any, and this section.
28.2. Application for Payment. Prior to receiving payment for Substantial Completion
of the Work, the Contractor shall in writing state that the respective portion of the
Work has been substantially completed and is free and clear of all liens as
provided in this Contract. Upon Substantial Completion and inspection and
verification by the HRA, the payment for that portion of the Work shall be made.
Final payment shall be made when Contractor certifies that Final Completion has
been achieved and verified by the HRA.
IN WITNESS WHEREOF, the parties have caused this Contract to be duly executed in
their names and behalves and on or as of the date and year first above written.
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD
By
Suzanne M. Sandahl
Its Chair
By
Steven L. Devich
Its Executive Director
314396v2 MTN RC125-1
13
THIS INSTRUMENT DRAFTED BY:
Kennedy & Graven, Chartered (MTN)
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
(612) 337-9300
314396-v1.DOC
314396v2 MTN RC125-1
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CONTRACTOR
By
Its
By
Its
14
5/-l- I .;-
EXHIBIT A
LIST OF SUPPLIERS AND SUBCONTRACTORS
314396v2 MTN RC125-1
A~l
AGENDA ITEM # 6
REpORT # 10
STAFF REpORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 14, 2008
REpORT PREPARED By:
VANESSA HAIGHT, HOUSING SPECIALIST
NAME, TITLE
REPORT PRESENTER:
JOHN STARK, ASSISTANT DIRECTOR
COMMUNITY DEVELOPMENT
DEPARTMENT DIRECTOR REVIEW:
NAME, TITLE
REVIEWED BY EXECUTIVE DIRECTOR: //
/'1
.,'
ITEM FOR HRA CONSIDERATION:
Consider a subordination request for the Housing and Redevelopment Authority's Deferred
Loan at 7433 Park Avenue.
1. RECOMMENDED ACTION:
By Motion: Deny a subordination request for the Housing and
Redevelopment Authority's Deferred Loan at 7433 Park Avenue.
I II. BACKGROUND I
On September 5, 2002 a Richfield Rehabilitation Deferred Loan in the amount of
$25,000.00 was issued to Katheryn Graeve, Mary Ann Graeve and James Graeve.
Katheryn Graeve held a contract for deed for the property at 7433 Park Avenue.
Kathryn Graeve is requesting the Housing and Redevelopment Authority (HRA)
subordinate at this time. Ms. Graeve is seeking a mortgage to payoff the Contract
for Deed. Ms. Graeve also plans to apply a portion of the new mortgage to payoff
credit card debt.
01'1408 Graeve Subordination Appeal
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The current HRA's Subordination Policy requires any equity being
removed beyond the cost of the loan transaction to be used to
improve the property. Ms. Graeve's subordination application does
not meet this criteria because she plans to remove some equity to pay
off credit card debt.
. All other criteria for approval of the subordination are met.
I B. CRITICAL ISSUES I
. Administratively, Ms. Graeve's subordination request was denied. Ms.
Graeve is appealing the decision and requesting the HRA make a
special consideration.
I C,. FINANCIAL I
. Payment has been received for the subordination request.
I D. LEGAL I
. Staff has consulted with legal counsel on this matter. Legal counsel
has suggested the HRA not make decisions based on uses proposed
for the equity being removed. If the HRA's policy states that any
equity being removed as part of the transaction must be used to
improve the property, the HRA should deny Ms. Graeve's
subordination request because it fails to meet the criteria. If the HRA
would like to allow equity to be applied toward other uses, such as
credit card debt, the HRA should amend the subordination policy to
reflect this.
I IV. ALTERNATIVE RECOMMENDATION(S) I
. Approve the request and direct staff to revise the subordination policy to
allow the use of equity to payoff credit card debt.
I V. ATTACHMENTS
. N/A
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING
. Kate Graeve, homeowner
AGENDA ITEM # 7
REpORT # 11
.......
STAFF REPORT
RICHFIELD
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 14, 2007
REpORT PREPARED By:
JOHN STARK, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
REpORT PRESENTER:
NAME, TITLE
DEPARTMENT DIRECTOR REVIEw:
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of development proposal by Sherman and Associates for a rental housing
development at the former BridQeman's restaurant site.
1. RECOMMENDED ACTION:
By Motion: Direct staff to draft a Contract for Private Redevelopment
with Sherman and Associates for the redevelopment of the former
Bridgeman's restaurant site for consideration at an upcoming HRA
meeting.
I II. BACKGROUND I
The development company Sherman and Associates (Sherman), has entered into a
preliminary purchase agreement to purchase the property at 800 W. 66th Street (the
former Bridgeman's restaurant site). This property is identified as a potential
redevelopment site in the Lakes at Lyndale Master Plan.
At this time, Sherman is contemplating a 48-unit residential rental development,
which they have identified as "Reserve at Woodlake". As stated in their
"development vision" (on page 15 of their proposal document), the proposed
Reserve at Wood lake development would include 12 1-bedroom units, 232-
bedroom units and 13 3-bedroom units. The proposal provides an explanation of
011408 Bridgemans
their assessment that non-age restricted affordable rental housing would be the
best use for this property. The most recent such development that was constructed
in Richfield was the Oaks on Pleasant; otherwise, there has not been any non age-
restricted multifamily rental housing built in Richfield in at least 25 years.
Sherman and Associated has constructed and/or rehabilitated 37 rental
developments with a grand total of over 4,400 units in the upper Midwest (most in
the Twin Cities) during the past twenty years. They retain management
responsibilities for the rental housing they construct and appear to have a very good
track record for maintaining their properties.
The preliminary purchase agreement for the property will terminate on January 14
(the day this item is being considered) unless Sherman chooses to remove
contingencies or is able to negotiate an extension. The HRA's decision on this item,
therefore, may dictate whether Sherman chooses to waive contingencies and move
forward on the project. Sherman's preliminary financial assessment of the
development, however, points to a need for financial assistance in order to make
the project feasible. A portion of the assistance being sought is tax increment
financing (TIF). Before extending their purchase agreement, Sherman must reach
the conclusion that the HRA is willing, under the Terms of a Contract for Private
Redevelopment, to provide TIF funding.
The tax increment being sought by Sherman is identified on page 18 of the proposal
as $491,175. It should be noted, however, that the developer is also seeking a
number of grants. In the event that those grants are not awarded, or if development
costs are greater than anticipated, the amount of increment needed may increase.
Based on current assumptions, Ehlers and Associates' TIF projections estimate
$535,800 of available tax increment.
If the HRA is interested in helping Sherman and Associates pursue this
development opportunity, the next steps would be to conduct an architectural
assessment of the site to determine whether it meets the requirements set forth in
redevelopment law (costs for which Sherman has already agreed to reimburse the
HRA) and to instruct legal counsel to draft a Contract for Private Redevelopment for
formal consideration at a future HRA meeting.
I III. BASIS OF RECOMMENDATION I
IA. POLICY I
. The former Bridgeman's restaurant property is identified as a
redevelopment site in the Lakes at Lyndale Master Plan.
. Redevelopment of this site without TI F assistance may be unlikely due
to extraordinary costs associated with demolition, site preparation,
possible soil remediation and construction of structured parking.
I B. CRITICAL ISSUES I
. The developer's preliminary purchase agreement is set to terminate
immediately unless Sherman removes certain contingencies or takes
steps to extend it. Sherman is seeking HRA support before removing
contingencies.
I C. FINANCIAL I
. The developer has identified a financial gap and is requesting that the
HRA provide tax increment financing (TIF) to help fill that gap.
. The developer has agreed to reimburse the HRA for costs associated
with the completion of a TIF analysis by Ehlers and Associates and a
property analysis by LHB Architects. Any further reimbursements
would be identified in a Contract for Private Development.
I D. LEGAL I
. Legal counsel has been alerted to the possibility of a possible need to
draft a Contract for Private Development should the HRA so direct.
I IV. ALTERNATIVE RECOMMENDATION(S) I
. Seek further information regarding the proposal before directing staff to draft
a Contract for Private Development.
. Reject Sherman & Associates' request for HRA assistance in developing the
property.
I V. ATTACHMENTS I
. Development proposal from Sherman & Associates.
I VI. PRINCIPALPARTIESEXPECTEDATMEETING I
. Representatives of Sherman & Associates.
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shert11arl¾,A,SSOCIATIES
DEVELOPER PROFILE
Sherman Associates
Sherman Associates, Inc. is an award-winning firm specializing in design, construction and financing of
qualit.y commercial and housing pl"operties in California, Iowa, Minnesota, Missouri, and Wisconsin.
Having earned a stmng reputation for quality and follow-through, cities around the country have tumed
to Sherman Associates to pioneer redeveloprnent in their highest priority urban neighborhoods.
In the process. Sherman Associates has become an industry leader in tax credit., affordable housing, and
tax incl"ement financing pwjccts. Such developments have been successful for the paTticipating
cities, investors, residents. and businesses.
Shennan I\ssociates has developed approximat.ely 600,000 square feet of commercial pmpeny and 6.000
multifamily, townhouse, and single..family homes.
Selected Awards
2007 Affordable Housing Finance Magazine: Best Histork R.ehabHitation:
f'1idtown Exchange and The Chicago Lofts
2006 National Trust/HUD Se(xetary's Award for Excellence in Histo.-ic Preservation:
Midtown Exchange and The Chicago Lofts
2006 Project of the Year: Adaptive Reuse by Multifamily Executive Magazine:
Midtown Exchange and The Chicago Lofts
2005 Best in A.merkan Living by Professional Buildei' Magazine:
Midtown Exchange and The Chicago Lofts
2005 Trillium Award by Builders Association of the Twin Cities:
Midtown Exchange and The Chicago Lofts
2004 Best jf! Real Estate: Best OveraH by Minneapolis / St. Pau! Business Journa!:
Midtown Exchange and The Chicago Lofts
2003 Best in Real Estate by Minneapolis/St. Paul Business journal:
Falcon Heights Town Square
2002 Best in Real Estate by Minneapolis/St. Paul Business Journal:
Burnsville Heat"t of the City
200 I Best in Real Estate by Minneapolis/St. Paul Business Journal:
Wacouta Commons
....sherman
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Sherman Associates' experience also includes construction of new retail, office, hotel, and office ware-
house buildings. With over 25 years of development and construction experience, Sherman Associates is
able to offer a diverse range of services in the commercial, single-family, and multifamily markets. They
encompass:
Development Sel"vices
Design-Build Services
Financial Analysis/Feasibility
Federal, State and Local Housing Programs
Pmperty i'ianagement Services
Construction
Site Analysis
Marketing Progl"ams/Feasibility
Equity and Debt Funding
Shenmn Associates has established an impressive and prolific t1"ack record. It.s current pipeline consists
of $200 million to $250 rnillion a year in new developments, both cornmercial and residential.
A few key pl'ojects are profiled here to illustl"ate the quality, complexity, and v3xiety of the finn's
experience:
Assembling financing from a variety of public and pl'ivate sources
Creating strong public-private partnerships
Catalyzing neighborhood renaissance
Completing mixed.use and mixed-income projects
Ensuring thoughtful design and quality construction
Creating tangible community impact
Selected Experience:
Midtown Exchange Apartments and The Chicago lofts in Minneapolis. i'iinncsota
Greysolon Plaza, Sheraton Duluth Hotel and 31 i Superior i'n Duluth, Minnesota
Syndicate Trust Building in St. Louis, Missouri
Vine Street Lofts and Water Street Brownstones in Des Moines, Iowa
Wacouta COll,mons in Saint Paul, Minnesota
BurnsviUe Heart of the City in Bumsville. Minnesota
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Midtown Exchange Apartments and The Chicago lofts
Ivlinnea!)olis, MN
In 2004, a collabol'ation between housing developer Shemlan Associates and cornmercial developer
Ryan Companies transformed the mammoth 1.2 million-square. foot historic Seal's, Roebuck building in
South Minneapolis into a mixed-use masterpiece featuring 88 loft and penthouse condo units, 2 I 9 rental
units (including affol'dable units), the headquarters of Allina Health Systems and a global food market.
The food mad<et features small businesses started by local entrepreneurs.
Historic Rehabilitation and Mixed-Use Conversion Development
~.I market-rate apartments
178 affordable apartments
88 condominiums
Project Value: $ll i"lillion
Financing: 4% LlH Tax Credits, Federal Historic!';1x
Cn.;c1its, US Bank fil'st n1OI'tgage (Housing Revenue
Bonds), Minnesota Housing Finance Agency, City of
Minneapolis. Hennepin County, Tax Increment,
Metl'Opolitan Council
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Completed: December 2005
Selected Awards:
2007 Affordable Housing Finance Magazine: Best Histol'ic Rehabilitation
2006 National Trust/HUD Secretary's Award for Excellence In Historic Preservation
2006 Project of the Year:/\daptive Reuse by Multifamily Executive Magazine
2005 Best in American Living by Professional Builder Magazine
2005 Trillium Award b y Builders Association of the Twin Cities
2004 Best in Real Estate: Best Overall by Minneapolis J Sc Paul Business Journal
... sherman
,a.. ASSOCIATES
DEVELOPER PROFILE I November 2007
4
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Greysolon Plaza, Sheraton Duluth Hotel and 3 II Supet'ior
Duluth, Minnesota
In 2006, Sherman Associates acquired and rehabilitated the historic Greysolon Plaza building in down-
town Duluth, Minnesota. Built in 1910 as the Hotel Duluth, Greysolon Plaza's guests have included sov
er'al former US Presidents. The building was conver'ted to affordable senior housing in the 1990's. I\s
part of the redevelopment plan, Sherman Associates will proseI've the affordable housing.
Across the street, Sherman Associates is building a new building that will include a Sheraton hotel con-
nected the hisWI'ic ballroom of the Greysolon Plaz;) by skyway. Five floors of luxury condominiums .lre
being constl'ucted on wp of the six..swr'y hotel. The renovation and consu'uction of tJw two buildings
are pan of a i1lulti..pmject redevelopment of the historic "Old Downtown" area of Duluth.
Historic acquisition ;)nd rehabilitatiol!
150 affordable senior apartments
I 55-room hotel
33 condominiums
f)roject Value: $55 Million
Financing: Federal Historic Tax Credits, 4% LlH Tax Credits, Minnesota Housing Finance Agency
Soft Debt, Section 8, New Market'Tax Credits, T:1X Increment Financing
Role: Developer, General Partner', Owner
Completed: Summer 2007
,--
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DEVELOPER PROFILE; November 2007
5
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Syndicate Trust Building
St Louis, Missouri
The Syndicate Trust Building is a prominent historic property located at 10th and Olive Streets in the
hean of downtown St. Louis, Built in 1907, the I 6,story building is compl'ised of approxirnately 4S0,OOO
squ<lre feet and originally was used for office ilnd retail space, The building is listed in the National
Register of Historic Places bec<lllse of its notable architectLlI^e.
Retail will return to the Syndicate Trust Building with top-rate national and local retailers located in the
st!'eet level space. Lort condominiurns, located on floors 9 through 16, and rental apartments IOGllCd on
floors 4 through 8 will provide residents with the convenience, features and alnen!t!c;s associated with
urban living.
20,000 squal'rc feet retail" Gmuncl Floor
28 affordable <lpartments " F1oo)'s 4..5
42 market.Tate apartments.. Floors 6..8
102 condominiums.. Floors 9..17
Project Value: $81 Million
Financing: City of St. Louis, 4% LlH Tax Credits, New Markets'rax CI'edits, Federal Histol'icbx
Credits, Missouri St<lte Historic Tax Credits, Missouri State L1H Tax Credits, Brownfield
Redevelopment Gram
Role: Developer, General Partner
Completed: In Progress
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DEVELOPER PROfILE I No","'" 20071
6
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Vine Street Lofts and Water Street Brownstones
Des Moines, lowo
Completed in 2004,Vine SU'eet Lofts and its sister condominium project,WatN Street Brownstones,
were the first significant new construction residential project in Des Moines in over 20 ye,ll's, Locau'u
on a pdme site overlooking the Des Moines River, the parcel had been a surface parking lot for
decades, Selected through a competitive request for proposal project, Shennan Associates and partlle'I'
Landel' Urban Developrnent introduced a model that was untried in Des Moinc~s..high end flolne-owner
ship opportunities, market,rate rentalllnits and affordable I'ental units 011 the same block sharing the
same underground parking system, The completed pt'Oject is a resounding SllCU;SS ,!lId is considered
the project that jurnpstarted the downtown housing market,
6S market..ratc apartments
44 affordable apartments
32 condominiums
Project Value: $15 rvJillion
Financing: HUD, Fannie Mae, City of Des IYJoines, Polk County Housing'T!'ust Fund,
NeighbodlOod Finance Corporation, T;lX Credit, lax Abatement
Role: Developer, General Parmer, Property Manager'
Completed: September 2004
r.. sherman
,. ASSOCIATES
DEVELOPER PROFILE! November' 2007
7
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Wacouta Commons
Saint Pcwl, Minnesota
Multiphase redeveloprnem of blighted industrial space and surface parking lots including mixed-income
rental and ownership housing along with ground floor I'ental space revitalizing the northeast quadr;lnt of
downtown Saint Paul.
Development Components:
Ret<1il Space / Approximately 14,000 sq ft
Dakota on the Park! 38 Units
Essex on the P<1rk ! 38 Units
Siblpy Park Apanrnents ! 113 Units
Sibley COUI't i\parunents / 121 Units
9th Street Lofts i 49 Units
Pt'int0)r'S Row i 48 Units
Pmject Value: $96.2. million
Role: Developel~ General Partner, Property Manager
Selected Awards:
200 I Best in Real Estate by Minneapolis / St, Paul Business Journal
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DEVELOPER PROFILE! No,"mboc 20071 a
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Burnsville Heart of the City
Burnsville./v1innesota
In 1999. the City of Burnsville adopted the 54-acre "Heart of the City" framework to create a mixed,
use, pedestrian-friendly downtown al'ea and developers implell1ented the vision over several years.
Shennan Associates led the way with Grande Market Place and Grande Market Square, a cornprehensivc
mixed.use and mixed,income town square centel~
I 13 affol'dablc apartments
45,000 square feet I'ctail and commercial space
Project Value: $37 Million
Financing: HUD. fvlinnesom Housing Finance Agency. City of Burnsville Family
FUlld. Dakota County, Tax Increment, 4% L1H 'T;IX C1'cdits
Role: Developer, Genel',)! Partner, Propel'ty f'1anagel'
Completed: 2004
Selected Awards:
2002 Best in Real Estate by Minneapolis / St, Paul Business Journal
.... sherman
,.. ASS 0 C I ATE S
DEVELOPER PROFIL.E I NovcmbCl' 2007
9
COMPLETED PROJECTS
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UrbanWod(s Architecture
UrbanWorks Architecture LLC was founded on our belief in the connection between great buildings,
great urban places and great returns. We add value for our clients by pl"Oviding the highest quality design
through a focused, disciplined pl'Ocess that delivers on these thre~~ goals.
The members of our firm share a passion for designing buildings that will stand the test of time and a
commitment to building lasting relationships.
UrbanVVorks Architecture LLC was founded by II members of the Housing and Urban Design Studio of
Cuningham Group Architecture, P.I\. in order to focus specifically on multifamily and mixed use project
types and thereby better SUppOI't our clients. Thl'Ough a coopel'ative agreement with Cuningham Group
and the approval of our clients, most of the projects in the studio were t.ransferred to UrbarNVorks. 0,11'
staff has noyv grown t.o more than 20, and t.he finn maintains architectunl registrations in 14 states.
Creativity a.nd Pr'ocess
We understand well the challenges and constraint.s of designing and developing ever more complex
multifamily and mixed llse buildings. Our approach is to partner with our dients and other participants in
the development process to bring their expertise and perspective into the project development as early
as possible. We don't shy away from the development realities such as public approvil,ls, market demand,
or construction cost -- we embed them in our progl'am and process.
We design for the market, for future residents, and for the communit.y, not for ourselves. The most
important measure of our success is the success of ow' client.s.
Project Types
We have successful experience in a wide variety project t.ypes, including the following:
. New construction lofts and condominiums, from urban lofts to traditiona.lluxury
. For sale townhouses, urban a.nel suburban
. Conversion of historic buildings into loft.s
. Conversion of a rental building into condominiums
. Mad<et rat.e and affordable rental housing
. Student. housing
. Active senior housing
. Baby Boomer housing
. Mixed-use projects that include housing with other uses such as retail, restaurants. office, community
facilities. and churches
. Master plans for a wide variety of communities including town centers, mixed-use projects, suburban
redevelopments. and residential developments of varying levels of density from single family to high rise
13
PROJECT BACKGROUND AND VISION
--~-_.....~--~----~~._,-_._----~-~--~,.._--~~,~~--~-~
Developer
Sherman Associates, Inc.
Architect
Urban Works Architectln-e llC
Location
800 West 66'" Street (formerly the "Bridgeman's Restaurant Site")
Proposed Development
The Resel've at Woodlake
PI'oject Background
Shennan i\ssociatc:s is proposing COnSl'l'llction of a 4..story 48 unit ap,lrtmem building with uildergl'Ound
parking that will contain a complirnemary mix of one, two, and three bedroonl units, The apanmcms will
have I'ems affordable to the local workforce, with incomes up to 60 pen:em AMI.
The development will be situated on appl"Oximar.ely 1.2 acn:;s located at 800 VVest 66';' Stl'eet. Th(~ site
previously hOllsed an Embers Restaurant. The building is currently vacant and in poor repair.
Site and Surrounding land Uses
The site's physical address is 800 West 66'1> Street. The surrounding land uses are as follows:
() Northwest:: The United States Post Office is contiguous to our site
Southwest: SuperArnerica is contiguous to our site.
o East: Wood lake Point Condominiums
o North: Richfield Lake (across 65th Street)
o South: lake Shore Condominiums (across 66th Street)
14
Development Vision
We are envisioning this development to be four stories with underground heated parking. Exterior
building finishes will include brick. durable siding materials, vinyl, glass, and other high quality finishes.
Interiol' finishes will also be high quality and consistent with what Shennan Associates has done on
previous housing projects.
The Reserve at Woodlake will consist of 12 one-bedroom, 23 two-bedroom units, and 13 three-bedroom
units for a total of 48 units.
A Community Room will b(~ provided for resident use. This room wi!! be available for residents to
reserve to throw a private party, host a community meeting, ete.
(",-ddleionally, a tot lot will be provided for resident use. The tot lot will be available for use to I-esidents
of the project and will include standard child..safe playground equipment such as a slide, swings, and other
appropriate pieces of equipment.
The deveiopnwnt will also include individual storage lockel's available to residents on each flool- of the
development. Bike storage will also be Pl'ovided to residents in the underground parking gMage.
We are aware that the ability to supply adequate pad<ing is a concern to the City of Richfield. Vile intend
to pl'Ovide one parking space pel' bedroom for a one-bedroom, and two parking spaces pCI' bedroom fOI'
two.. and three..bedroom units. Therefore utilizing the CUITent unit mix:
I BR:~ 12 units x I parking space::: 12 spaces
2 BR :: 23 units x 2 parking spaces::: 44 spaces
3 BR::: 13 units x 2 parking spaces::: 26 spaces
Total: 48 units equaling 84 spaces for a parking ,'atio of 1.75 to 1.00
Lastly, Sherman Associates intends to incorporate "green" building design elements throughout the
project where practical and financially viable.
Why Affordable Housing?
Shet'man Associates feels this would be an ideal site for workforce housing. The mains I'easons can be
summarized as follows:
o Current Housing Need: Although Richfield has I'ental housing stock there is a shortage
of newly constructed, quality affordable rental housing.
o Site Location: The site lends itself well to this type of housing due to the surrounding
land uses which include a mix of retail, commercial, and multifamily properties, Most
importantly. however, is its proximity to large private and public employers. Each
sector employs many entry level employees who need an affordable place to live dose
to where they work.
o Current housing stock: The surrounding land uses include senior rental housing and
high-end luxury condominiums. What this area is missing is new, affordable rental
housing. This would be the last piece to the life-cycle housing puzzle.
o Current Real Estate Market: The current state of the for-sale market makes the
construction of condominiums not viable. Also, as mentioned above. we believe this
area to already have reached its saturation point of senior rental housing. Lastly because
this parcel is not located on a corner we feel this limited its attr'activeness as a retail or
commercial site.
15
Our assessment of the cun'ent market and our experience and success with this type of housing product
have led us to the conclusion that affordable housing is the highest and best use for this site.
What is Affordable Housing?
For many people hearing the term "affol'dable housing" immediately brings to mind the IRS Section 8
voucher program. The Reserve at Wood lake is not subsidized through Section 8. It instead utilizes tax
credit financing under Section 42 of the IRS code. Many people know about Section 8. VVhat they may not
know about is Section 42.
Basically, Section 8 funds pay the landlord rent money. The renter applies for a vouchel'. The value of the
voucher varies. The public housing authority pays the owner the diffel'ence between 30 percent of
adjusted family income and a PHI.\, determined payment standard 01' the gross I'~~nt for the unit, whichever
is lower.
Section 42 administers the Low Income Housing Tax Credit, introduced in 1986. LlHTC is a tax credit
pl'Ograrn developers use to construct or refurbish multifamily housing with the understanding that only
l'e~idents who make 50 01' 60 percent of the local median income can n;~llt the units.
"Although there is considerable variation among properties. tax-credit properties tend to be smal!, newly
constructed, and managed by their owners. Most are situated in central cities. The proper-ties are
intended to sel've families, elderly pel-sons, and disabled pel-sons," according to an
online information source for housing and community development re~earcher~ and policymakers.
The Reserve at Wood lake fits the above description in that it will be newly constructed, small (only 48
units), and managed by Sherman Associates through our management company which currently mana,ges
the over 5,000 rental units held in our portfolio.
For informational purposes, Table "An below summarizes the unit mix and rent strUcture:
Table A.
r.... ....... -- -.-.--..... -.....----- - '1"""'--'" . .... ..-.......---.. ...-......J
! U . T # f DU Proposed Monthly
nit ype . . 0 Contract Rent Per Unit
------ '--'JBR'-' "'.--.-.......--. .. 5..............--.... '--$668----' ......
~------------ .^~M-iBR------"."~~,._~!---..6~"~.-^-~--- - --N$8Bo~..-'--- --
................".........-3BR ---........."...-..-..- ...."........)................ -...............- $920 --.
-.-.--.-......................-...f8R--.--......................-....- -........"7"-....- --..............--'$800---.
-.-....-................----2B~-.--....-..........._........_..- ---....j--7".........- -.--..............$'i!i77..--.....................
=~~~.~__~.::~~~::..~.:==.~...". ~~~!~=U~!T...~~ :==~=-:~.=.=f=:..=:.~::~~!l , I_~~=::~:.:~..:=:~~:
The Reserve at Woodlake will provide well appointed, yet affordable housing, to the many people that
work within close proximity to the proposed development. The preliminary per unit total development
cost is $213.423 which shows that we are committed to building a quality project that will be durable and
stand the test of time.
16
PROPERTY MANAGEMENT
Sherman Associates' key management team has over seventy-five years of combined management
experience. Sherman Associates has diversity of staffing as well as cliversity in the properties that we
manage. We manage what we own which combines both commercial and residential propel'ties located
throughout the Twin Cities' metropolitan area, Iowa, and VVisconsin. Sherman Associates is experienced
in evaluating the manag(:)rnent needs of property whether it be a single-family home or the largest project
in OUI' portfolio, Riverside Plaza at 1.303 apartment units.
Each project in our portfolio has management requirements that are unique. Sherman Associates staffs
each property accordingly. Due to OUI" experience in property management we can quickly adjust to
meet the needs of any given property. A new property is first evaluated for its management needs. hom
this evaluation a management plan is designed for the fil"sl: year and implemented. The individual
management plan is evaluated quarterly to see if any adjustments are necessary. f.\t the end of the first
year ;1 two"ye;ir management plan is determined. At the conclusion of that a three-year plan is
implemented and updated every three years thereaft.er.
The management division of Sherman Associates has a pl'Oven l'IxClnj of quaiity, fail' housing property
m;magement. A measure of this success is the I-ecurring "Superio;" Rating" from dw U.S. Department of
Housing and Urball Redevelopment.
17
FINANCIAL ANALYSIS
PROJECTED USES:
L;md
Hard Costs
Soft Cases
Financing Costs
Total Sow'ces of Funding:
PROJECTED SOURCES:
Fil-st Mortgage
Syndication Pmceeds
MHFA Def. Loan
Family Housing Fund
TBRA I DEED I ERF funds
Family Housing Fund -MN
Green
Hennepin County HOME
Metro Council L1HA
I Total Sources of Funding:
Arnount
$1.660,000
$6.354,400
$1.849.500
$380.382
$IO,244,:Un
$2.032,882
$5,853,586
$80 I ,089
.._,-------
$200,000
$100,000
$15,000
$500,000
._----_.----~...-
$250,000
$9,152,557
$491,725
NOTE: None of the sources have been committed at this point. Sherman Associates' feels that based
on our experience these sources would be available to us. We will apply to MI'\i Housing in the June 2008
funding round. In addition, we are requesting Tax Increment Financing assistance from the City of
Richfield to help us fill the GAP.
18
PROJEC-c__ARCHITECTURAL
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PROJECT CONTACT:
Ryan Sailer, Project Manager
MAILING ADDRESS:
Sherman Associates, Inc.
233 Park Avenue South, Suite 20 I
Minneapolis, MN 55415
MA!N PHONE:
612..332..3000
F /.\X:
612..332..8119
EMAiL:
rsail er@sherman"associares.com
WEB:
www.sherman-associates.com
d:)
AGENDA ITEM # R
REpORT # 1 "}
STAFF REpORT
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 14, 2008
REpORT PREPARED By:
JOHN STARK, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
REpORT PRESENTER:
JOHN STARK, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
NAME, TITLE
DEPARTMENT DIRECTOR REVIEW: [3/
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Consideration of preliminary proposals for the Cedar Point Phase II area.
I. RECOMMENDED ACTION:
By Motion: Direct staff to continue working with one or both
developers on refining their development proposal for the Cedar
Point Phase II area.
I II. BACKGROUND I
The Cedar Point phase II area is located between 63rd and 65th Streets and
between 16th and 17th Avenues (directly west of the Cedar Point retail
development). This area is in the low frequency noise impact area and has been
identified by policymakers as a high priority for redevelopment.
In spring 2007, staff circulated a "Request for Proposals" (RFP) for the Cedar Point
Phase II area to the development community. After receiving no responses to that
RFP, and on the advice of an architecture firm that has worked with the City and
HRA on a number of occasions, staff sought the input of the development firm of
Sherman and Associates (Sherman).
011408 Cedar Point II
As stated in an HRA memorandum dated July 26, 2007, staff worked exclusively
with Sherman for several months while they evaluated the feasibility of developing
the site. Sherman's preliminary study indicates that a residential development on
this site would result in a significant financial "gap".
As stated in a November 19, 2007 HRA memorandum, another development firm,
LaNel Financial Group (LaNel) has also indicated some interest in making a
residential development proposal for the site.
Both Sherman and LaNel have submitted their preliminary proposals (attached) for
the HRA's consideration.
Sherman & Associates proposal includes a conceptual site plan (page 7) showing
120 units of senior assisted living rental housing, 60 units of rental housing and 60
units of independent-living senior rental housing. Page 4 of the proposal provides a
financial analysis of the proposal. This shows that Sherman's would purchase the
15 houses on the east side of 16th Avenue and expect that the City or HRA would
be responsible for purchasing the 14 houses on the west side of 17th Avenue and
selling those portions not used for Parkway to the developer. At the current time,
neither the City nor HRA have identified funding sources for purchasing these
homes. The Sherman proposal also assumes the use of $1.3 million in TIF; this
number is consistent with the preliminary TIF analysis that has been done by
Ehlers. .
The LaNel proposal includes a conceptual site plan showing 130 units of
independent-living senior rental housing, 60 units of senior assisted-living rental
housing and 16 town homes. The LaNel proposal also includes photographs of
other similar projects they have completed in recent years. In discussions with staff,
representatives of LaNel have stated their intention to purchase all 29 homes in the
area as part of the project. Based on earlier site plans that were submitted, Ehlers
estimated the available tax increment in net present amounts of $2.6 million for the
LaNel proposal. The revisions to the site plans may result in changes to the
increment generation, as would any future change in the site plans or assumptions
on which the calculations are based.
Either developer would have to spend further time and money in efforts to continue
to refine their development. An indication from the HRA as to whether it finds either
proposal to be undesirable or less desirable than the other may help the developers
determine if this further expenditure of time and money would be warranted.
I III. BASIS OF RECOMMENDATION I
I A. POLICY I
. The Cedar Point Phase II area has been identified as an area in need
of redevelopment due to the impacts of low-frequency noise
associated with the Minneapolis/St. Paul International Airport.
. Both developments include senior housing components; neither the
HRA nor City Council have made a formal policy statement about the
need or desirability of additional senior housing in the community.
I B. CRITICAL ISSUES I
. The majority of property owners in the Cedar Point phase II area have
stated a desire to relocate from that area as soon as possible.
. Given current market conditions and recent experiences of staff, for
development to proceed at this time, senior housing is likely a
necessary component.
I C. FINANCIAL I
. Both developers have agreed to reimburse the HRA for the cost of
having Ehlers and Associates complete a preliminary TIF analysis.
. The developers have not indicated whether they would be willing to
reimburse the HRA for future costs which may be incurred (legal, etc.)
without a formal arrangement with the HRA (exclusive rights
agreement or contract for private development).
I D. LEGAL
. N/A
I IV. ALTERNATIVE RECOMMENDATION(S)
. N/A
I V. ATTACHMENTS I
. Conceptual site plan and preliminary sources and uses statement from
Sherman and Associates.
. Conceptual site plan and preliminary sources and uses statement from LaNel
Financial Group.
I VI. PRINCIPAL PARTIES EXPECTED AT MEETING I
. Representatives of Sherman and Associates.
. Representatives of LaNel Financial Group.
ATTACHMENT A
''-''~~<,''C'';>c'''''''''''-'''''''''_'''/''''=,'''''''_.:".~~",."-""""",,"'''-",,,-,,,,,,,,,,,~,,,,,,,_:,~,-,,,:,;,,,,,,~,--'_.e:._';'<7
..sherman
'III ASS 0 C I ATE S
~~n~~
~":a~o tner
Shern';~arl
ESG
Cedar Point Pip",,, II
(-JJ""b:?_ -'~-'!"'cc_:'
and
:;""'02t:: c C'G "',e;;\'\'E!:;:;n !
T'
E~rjiGr this $urnrnel~ Shr i'-Ian ..~,ssociatc$
v.j]rh the
of Richfield
of; ',,,,
referred to as the~ Cedar
Phase
drnp ';ive ~
iQoked at the or the site
nE2ded to maked'iE successfuL
t.fses
tl'1at v'/oul,i
V\,le reel Vie have
a that is feas~bk: and a
tearn tha.t
to execute v\ihat VIii I be a
)"et
fer the intsrKled
of Richfield,
S,mb~
Th"i
hornes.T.hE~
is
~. _nr-nt5
_.. .'==',..""-
South: Ret~aii and
vvest:
R.lesidenti"-I
2
Sherman .f~\SSOci~ltes IS conlrrtlttea to v'>lith the
to a vision that is compatible 'Nith !:he
of Richfield to
The
(:edaJ" Phase
r-especc the
ae5tf~i etJ c'
and architecture of the
VVe are
-co develop three dlstlnct
effort.
of 240 total units, as part ti'18
types,
\/\)p to pttftner Sourhv'ievv Ser~ior
unit. senior assisted The
between 6,r- Street and Taft Park This
Lernieux. of a 120-
"lIQuid occupy the north81T,rnost part of the site
'i'{ould inel ud,:;:
r4arket R,ate
Senior
units
Assisted (=~lre units
,- ,
t....,are U ri ItS-
On the southern porttcfl of the southernrnost parcel. Sherrnan proposes to build 60 un"its of
affordable \Norkfof"Ce i'lousing utilizing 93'~ tax c~'ed1ts, The rnix vvou!d consist of
25% one-bearcorn units, 50%, two-beef'oorn units, and 2.5% three-bedroom units.
Rents would be limited to 60% of p,J'''11.
At three and four stor'ies, the apartment can
the surrounding neighborhood.
an exceljent rede'v'elopnlent U$€ whIle rnaintaining a
an excellent architectural r"atch
types and site 'vvauld
and r-esirlential aesthetic.
ShC;nTI~Ul l\s-sociates v/ould de'v"elop 60 units of a.ffordable senior rental
exernDt bond and 4~'~ federal ta)( credits_ This
onc~ and t\lvo~bedroorn urdts and serle active seniors ~jges S5~~,
~l
',.J!
\I/l)! be located on the r'Jorth half of the southernrnost parcel, closest to 64lil Street
transition frorn the senior aSSisted care pr'oje<:t to the
vv'orktcr'ce
-The senior conlponent d Q"i' SC!11crs v{ith incornes
and The indusion of ro.rn11y vv'orkfon:c; a housing for the
of the senior facilities and those of the ne\'\' area rec2,iI that is inclose to
components that 'Nork
rernain
\-,,'\/e have
of
" , "'
c10 not saturate ttl€ nlaT~~et '/'!!tll one
t)'pe.
3
VVe have identified that the acquisition and
of the Cedar Point area will take substantial
,
"worn a
of sou rC8S.
In addition to substantial n8',t'l
area vviil have to be
costs
individual hennes in the
million of
:.it1()n, and detYH')!irJof: could
costs before even
This
the
the City ho.s
land back for fair market value.
the fiev;, boulevard.
the hOfnes along the n8'v\' boulevard a.nd
The 'Nould also pay lor demolition and
r'lasidential
infra5;truclure cl
thi s scerr~ri()f V""€ ha\T~
Sou rces and tJses stater-fiern:
acr:()u nts tOT ty iP
of the land and developrr~ent of the krh astructur-e ()nhi.
/J"rnount
$300,000
1,050,000
Infrastructure ~
~91 ,000,000
Fur,cs
$846,64-5
~ otal
.,tJ;',ssun'~ed a\/g.
per horr~e " rior(~e
SherOl.a.n /1,ssQt:;;ates
,~~,ssun~~ed 15 hornes x i 20 s-:~ x 60 sf x
of RJchHi~ld
Llnverffled estlrnare
4
5
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(;; IE ~~~ E Ft~~, l J~ J~\ [.:~, ~~';" ~\d IE R: S, h'2 t' n"~a_n
Hnt.:"
Sherrnan J\ssociates, jn~::, is an
firm
in construction and at
Iowa, l"linnesota, i'1issouri, and \Nisconsin.
cornrnercial an~j
in
earned a .5tror~g
to Sherman f-\ssociates to
for quality and folk.' /-thi ough~ cities around the cCluntr::{ ha\'c turned
redeve' ~JrT,;::r"';c H'CII priority urban
In the process~ Sherrnan p-,,-$socj~~t(~, nas becorne an rndu; IE%'lder in tax credit, affordable
tax lncrenlent financing Such neV"'i deve!oprnerts have been successful ror the
in\resror$, 1'<e3id"';n",~~ ",,:~d businesses.
citi es,
Sherw:;, ASSC'_0teS he:;
2' ~,
600,000 square feet of cornrnerc1al pt~opert}f and 6,000
see attached
tovvn!'jcuse, and
233 P?J"k f;j.;;venue Sou~h, Suite 20 I
f"iirmeapoiis, I'Jjf;J 554 i 5
6 J 2~332p3000 I 'Nv,/"<v,sherrnan~associates.conl
Key CQrrl(icts:
Sherrrlan~ President
612-332-3000 f
Sailer, Project
612-332-3000/
1'41', Sailer will be the iead contact
for the
team,
,q,RChHTECT: Elness Swenson (~niha"rn
~flC
Elness Svvenson Gr7,,!'"~il.rd is a national architectural firnl that understands )lOUr~ and translates
"',w,,, needs into quality ESe's foundation is based a rnaster aM built on a solid
commitment to excellencE'.
Avenue South, Suite
i"lf\! 554 i 5
Phone: (612) 339.5508
1080
Contacts:
T'Je1sorL \lice Pres~dent
6 2.373.4628/
Sherman il\ssociates and ESG f~(chitect:;; h;::r--le a
of afford3bie and markJ~t-rat'e
O"\'
I: the
o.nd
SEr\8~OiR~ i""iork~SH\iG OPJEftD"TOR; Suuthvi!8V~~ S':srr'iior
Southvie\N Senior
v-.!as created
OIJ!"~
to Sferve yours.
VVe
a home of comfort and
A
to make neVi friends and entertain oid frie:l1ck
South'ljev~1' Senior
IS a
for :lOU to leave your vvo(i~ies behind.
8
f\t Southvl E:\/'"
vve
/:,.,l1c,'2:nsed
~s a /~l!(:tble r:o a"SS2$S
that :s
for you
assistarJ:e is f:epf. ~,! C~T
\lV~~
2 yvjrk"
anC! l':;;fncr'!"~~-~;
~l2,~_
cor 'n~d~ :ed t(}
S'"2fVlce
~~itn>2SS ( ;~nte~-~
-;I~.ar V,;,'?,t;
;:),(cess
rOi;' senic')rs
CI.Js.tornej ~-d~"h!en
~/.r-,~ ,
oroex to
0; no;
to rnaintaTi
t' -~"''----''
eVE:iltS tl'"izt enCOt1raE"'--.
i~-~eau::d
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'",:;-;uest SU!ti?
sec,/;ce-s
9
3 -( CJ
ATTACHMENT B
John Stark
Assistant HRA Director
City of Richfield
6700 Portland Ave. S
Richfield, MN 55423
RE: 66th & Cedar
January 3, 2008
Dear Mr. Stark:
Pursuant to our discussion with Jan Sussee, enclosed please find the following:
Aerial Images and Photographs of:
. The Pines, Richfield, MN
. The Oaks, Richfield, MN
. The Arbors, White Bear Lake, MN
Architectural Site Plan from Elness Swenson Grahan Architects, Inc.
Sincerely,
Ot=)}J · 6~
Caitlin M. Goff
LaNel Financial
952-697-4681
Cc: Jan Sussee
4601 Excelsior Boulevard, Suite 601 III Minneapolis, Minnesota 55416 [J 952-920-5338 m Fax 952-925-5640
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Photograph of The Pines 1
Photograph of The Pines 2
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Photograph of The Pines 3
Photograpb'of the P'
lnes 4
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Photograph of The Pines 5
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Photograph of the ~ines 6
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Photograph of The Pines 7
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Photograph of THe Pines 8
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Photograph of The Oaks 1
Photograph of The OAks 2
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Photograph of The OAks
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Photograph of The Oaks 4
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Photograph of The Oaks 5
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Photogr~~~ of The Oaks 6
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Photograph of the Arbors from the NE Corner
Photograph of the Arbors from the NE Corner
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Photograph of The Arbors
Photograph of The Arbors
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Alternative veiw of the Arbors Photograph 1
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Photograph 2-with view of the 'Villas'
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Photograph of the Arbors from the SW Corner
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Photograph of The Arbors
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AERIAL IMAGE OF THE PINES AND THE OAKS.
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AERIAL IMAGE OF THE PINES AND THE OAKS.
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AERIAL IMAGE OF THE ARBORS-1
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AERIAL IMAGE OF THE ARBORS-2
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