121514CompleteAgenda HOUSING AND REDEVELOPMENT
AUTHORITY MINUTES
, Richfield, Minnesota
Special Concurrent
Housing and Redevelopment Authority
and City Council Worksession
October 20, 2014
CALL TO ORDER
The meeting was called to order by HRA Chair Sandahl at 6:02 p.m. in the Bartholomew
Room.
HRA Members Sue Sandahl, HRA Chair, Mary Supple;. Debbie Goettel; Doris Rubenstein;
David Gepner (arrived 6:35 p.m.).
Present:
Council Members Debbie Goettel, Mayor; Pat Elliott; Sue Sandahl; Edwina Garcia; and Tom
Present: Fitzhenry (arrived 6:10 p,m.).
Staff Present: Steven L. Devich, City Manager/HRA Executive Director; John Stark,
Community Development Director; Pam Dmytrenko, Assistant City
Manager/HR Manager; Karen Barton, Assistant Community Development
Director; and Cheryl Krumholz, Executive Coordinator.
Item #1 DISCUSSION REGARDING 7600 PILLSBURY/PLEASANT DEVELOPMENT
PROPOSAL (COUNCIL MEMO NO. 96/HRA MEMO 41)
Community Development Director Stark stated that Developer/Broker Donald James (working
in conjunction with several investors) will be discussing a conceptual proposal for the 7600 block
between Pillsbury and Pleasant Avenues (the former City Garage and Gleason's Mortuary site) of
approximately 40 - 48 townhomes on the site which would be owner occupied.
Mr. Stark also discussed the process for moving forward, including zoning approval, the
consideration of public subsidy and the options for streamlining the process since both the City and
HRA own the property.
Developer/Broker James presented the proposed development,including the financing.
The HRA and City Council consensus was to proceed with the preliminary concept of the
development proposal with the HRA negotiating on the purchase of the property subject to City
Council ratification.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 6:55 p.m.
Date Approved: November 17, 2014.
Special Worksession Minutes -2- October 20, 2014
Suzanne M. Sandahl
Chair
Cheryl Krumholz Steven L. Devich
Executive Coordinator Executive Director
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
Richfield, Minnesota
Regular Meeting
October 20, 2014
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:02 p.m.
ROLL CALL
HRA Members Sue Sandahl, HRA Chair; David Gepner; Mary Supple; Debbie Goettel,
Present: and Doris Rubenstein.
Staff Present: Steven L. Devich, Executive Director; John Stark, Community Development
Director; Karen Barton, Assistant Community Development Director; and
Nancy Gibbs, City Clerk.
Item #1 APPROVAL OF MINUTES OF THE (1) SPECIAL CONCURRENT HRA AND CITY
COUNCIL WORKSESSION OF SEPTEMBER 15, 2014 AND (2) REGULAR HRA
MEETING OF SEPTEMBER 15, 2014
M/Goettel, S/Supple to approve the minutes.
Motion carried 5-0.
Item #2 HRA APPROVAL OF AGENDA
M/Rubenstein, S/Goettel to approve the agenda.
Motion carried 5-0.
Item #3 PRESENTATION REGARDING THE HOUSING MARKETING PLAN
Kate Aitchison, Housing Specialist, presented the plan.
Item #4 PRESENTATION REGARDING THE 30-YEAR ANNIVERSARY OF THE
RICHFIELD DEFERRED LOAN PROGRAM
Julie Urban, Housing Specialist, reported on program.
Commissioner Rubenstein suggested rental housing be included in the program.
HRA Meeting -2- October 20,2014
Community Development Director Stark stated rental housing could be discussed at City
Council goalsetting.
Item #5 CONSENT CALENDAR
A. Consideration of the approval of a resolution accepting monetary support solicited for the
2014 Richfield in Bloom award S.R. No. 35
HRA RESOLUTION NO. 1189
RESOLUTION AUTHORIZING RICHFIELD COMMUNITY DEVELOPMENT DEPARTMENT TO
ACCEPT DONATIONS FROM THE LISTED BUSINESSES FOR DESIGNATED USES
This resolution appears as HRA Resolution No. 1189.
M/Gepner, S/Goettel to approve the Consent Calendar.
Motion carried 5-0.
Item #6 CONSIDERATION OF AN AMENDED CONTRACT WITH TMS CONSTRUCTION
FOR DEMOLITION OF 7308 10TH AVENUE S.R. NO. 36
Assistant Community Development Director Barton presented Staff Report No. 36.
M/Rubenstein, S/Supple to approve the amended contract with TMS Construction for the
demolition of 7308 10th Avenue.
Motion carried 5-0.
Item #7 HRA DISCUSSION ITEMS
None.
Item #8 EXECUTIVE DIRECTOR REPORT
None.
Item #9 CLAIMS AND PAYROLL
M/Goettel, S/Sandahl that the following claims and payrolls be approved:
U.S. BANK 10/20/14
Section 8 Checks: 125399-125511 $ 166,729.45
HRA Checks: 32090-32115 $ 220,727.71
TOTAL $ 387,457.16
Motion carried 5-0.
ADJOURNMENT
HRA Meeting -3- October 20,2014
The meeting was adjourned by unanimous consent at 7:34 p.m.
Date Approved: November 17, 2014
Suzanne M. Sandahl
HRA Chair
Cheryl Krumholz Steven L. Devich
Executive Coordinator Executive Director
AGENDA ITEM#: 3A
REPORT#: 37
STAFF REPORT
(-I C HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
DECEMBER 15, 2014
REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER
NAME,TITLE
REPORT PRESENTER: CHRIS REGIS, FINANCE MANAGER
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW:
a
1
SIGN TURE
REVIEWED BY EXECUTIVE DIRECTOR: rA
-rig/ 111110
ITEM FOR HRA CONSIDERATION:
Consideration of a transfer of funds to close the Urban Village, Gramercy, Lyndale Gateway,
Lyndale Gateway West and CARA Capital Project Funds, and the transfer of funds from the
Interchange West Tax Increment Fund to the Development Fund.
I. RECOMMENDED ACTION:
By Motion: Approve the transfer of funds to close the Urban Village,
Gramercy, Lyndale Gateway, Lyndale Gateway West, and CARA
Capital Project Funds and the transfer of funds from the Interchange
West Tax Increment Fund to the Development Fund.
II. EXECUTIVE SUMMARY
The Urban Village, Gramercy, Lyndale Gateway, Lyndale Gateway West, and
CARA capital project funds were established as part of their respective
redevelopment projects to track costs of each project.
The Urban Village, Gramercy, Lyndale Gateway, and Lyndale Gateway West were
capital project funds that accounted for redevelopment projects that utilized tax
increment financing.
Urban Village (also known as Woodlake Center) was completed in 2000 and
consisted of a new parking ramp, 138 rental and 78 assisted living units, and a
McDonalds, Houlihans and Dunn Bros restaurants.
The Gramercy capital project fund accounted for the construction of the Gramercy
Park Cooperative which consisted of 160 co-op units and the development of a new
Richfield VFW. This development was completed in 2000.
The Lyndale Gateway capital project fund accounted for two redevelopment
projects. The first project was Richfield Senior Housing consisting of 160 housing
units and 35,000 square feet of office space. This project was completed in 2001.
The second project was the Casteel Place townhomes which consisted of a 40
townhome development. The townhomes were constructed and fully occupied in
2001.
The Lyndale Gateway West capital project fund accounted for the Kensington Park
redevelopment project. This project consisted of 108 residential units, 14
townhomes and 94 condominiums and 27,000 square feet of commercial space.
Construction of the project was completed in 2005.
The CARA capital project fund was initially established for the redevelopment
activity in the Cedar Point area. However, as the redevelopment progressed and the
type of financing was determined another capital project fund was established, thus
rendering CARA obsolete.
All of the respective projects have been complete for several years and there has
been no activity in the project funds for several years. It is proper accounting
practice to close inactive funds.
Finally, staff is recommending the transfer of non-tax increment funds currently
within the Interchange West Tax Increment fund to the Development fund, a non-tax
increment fund. Proper accounting requires that tax increment and non-tax
increment funds be segregated.
The HRA Board will remember that the Interchange West Tax Increment District
accounts for tax increment received from the Best Buy Campus redevelopment
project.
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• N/A
B. POLICY
• The City and HRA's financial policies do not directly address the
closing out of City or HRA funds.
• The City's auditors have recommended that non-budgeted transfers
between funds be approved by the City Council or HRA board.
C. CRITICAL TIMING ISSUES
• The fund closings need to be completed prior to year end.
D. FINANCIAL
• The following table reflects the fund to close and the corresponding
transfer.
Fund Transfer Amount Fund Recipient Amount
Urban Village $ (5,219) Urban Village Tax Increment $ 5,219
Gramercy Tax Increment $ (50,479) Gramercy $ 50,479
Lyndale Gateway $ (335,823) Development Fund $ 335,823
HRA General Fund $ (4,285) CARA $ 4,285
Lyndale Gateway West Tax $ (259,741) Lyndale Gateway West $ 259,741
Increment
Interchange West Tax $ (477,273) Development Fund $ 477,273
Increment
• All transferred funds from the Urban Village, Lyndale Gateway and
Interchange West Tax Increment Financing Districts will be considered
as restricted for eighteen (18) months.
E. LEGAL
• None.
IV. ALTERNATIVE RECOMMENDATION(S)
• None.
V. ATTACHMENTS
• None.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
AGENDA ITEM#: 3B
REPORT#: 3 g
STAFF REPORT
eG e � HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
DECEMBER 15, 2014
REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON,HOUSING
SPECIALIST
NAME,TITLE
REPORT PRESENTER: KAREN BARTON, COMMUNITY
DEVELOPMENT ASSISTANT DIRECTOR
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: .!
REVIEWED BY EXECUTIVE DIRECTOR: Agri I • I
j 4
ITEM FOR HRA CONSIDERATION:
Consideration of the annual Consultant Services Agreement with the Greater Metropolitan
Housing Corporation for 2015.
I. RECOMMENDED ACTION:
By Motion: Authorize the attached Consultant Services Agreement
with the Greater Metropolitan Housing Corporation for 2015.
II. EXECUTIVE SUMMARY
The Greater Metropolitan Housing Corporation (GMHC) specializes in a variety of
housing programs, services and financing options for homeowners. The
partnership with the Richfield Housing and Redevelopment Authority (HRA) began
in 2004 and provides GMHC's services to Richfield residents at no cost.
Services offered include, but are not limited to:
• Home buyer information;
• Loan services (including Minnesota Housing Finance Agency loans);
• Construction consultations;
• Energy assistance;
• Mortgage foreclosure prevention;
• Home improvement information; and
121514 Housing Services Contract GMHC 2015xxx
• Assistance with rental and emergency housing issues.
The cost of their services for 2015 will be $7,000. This amount is unchanged since
2009.
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• Through November 2014 GMHC provided 105 services to 76 Richfield
residents through its Southside HousingResource Center (HRC) (see
Richfield Summary Status Report Monthly Tracking Report—
November 2014). In addition, 16 Minnesota Housing Finance Agency
rehabilitation loans were processed through the HRC.
• The HRA has also successfully partnered with GMHC for the
construction of affordable houses built under the New Home Program,
the purchase and rehabilitation of properties through the
Neighborhood Stabilization Program, facilitation of the acquisition of
HUD homes, and is currently working with GMHC on the construction
of two affordable homes, one of which will be fully accessible.
• In 2011, GMHC coordinated a grant proposal to Minnesota Housing
on behalf of Richfield, Brooklyn Center and Crystal for an interest-rate
write-down program. Funds were awarded and since that time, GMHC
has originated 30 home rehabilitation loans at three percent interest to
income-qualified households in Richfield.
• GMHC offers Richfield homeowners comprehensive home
improvement support and a variety of programs in a cost-effective
manner.
• GMHC offers their packages of programs and services in 16 metro
area communities. By partnering with GMHC for these services,
Richfield will remain competitive in the metro area.
B. POLICY
• A partnership between the HRA and GMHC ensures the availability of
comprehensive rehabilitation resources and financing resources to
Richfield residents. It also serves to accomplish the two housing goals
and several housing policies identified in the 2008 Comprehensive Plan:
o Goal: Maintain and enhance Richfield's image as a community with
strong, desirable and livable neighborhoods.
• Support the rehabilitation and upgrading of the existing
housing stock.
• Encourage the creation of"move-up" housing through new
construction and home remodeling.
• Support ongoing maintenance and upkeep of residential
properties.
o Goal: Ensure sufficient diversity in the housing stock to provide for a
range of household sizes, income levels and needs.
• Encourage improvements to the housing stock to better
serve families with children and seniors.
• Promote the development, management, and maintenance of
affordable housing in the City through assistance programs;
alternative funding sources; and the creation of partnerships whose
mission is to promote low to moderate income housing.
C. CRITICAL TIMING ISSUES
• GMHC's current Agreement for services will expire on December 31,
2014.
D. FINANCIAL
• The cost of services for 2015 is $7,000; unchanged since 2009.
• Funds are allocated for these services in the 2015 HRA budget
E. LEGAL
• The Agreement has been reviewed by HRA legal counsel.
IV. ALTERNATIVE RECOMMENDATION(S)
• Direct staff to modify the scope of services or modify the amount with GMHC.
• Do not approve the Agreement with GMHC.
V. ATTACHMENTS
• 2015 GMHC Consultant Services Agreement
• Richfield Summary Status Report Monthly Tracking Report— November 2014
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
CONSULTANT SERVICES AGREEMENT
THIS IS AN AGREEMENT entered into the day of , 20 , by and
between the Richfield Housing and Redevelopment Authority, ("HRA"), and GREATER
METROPOLITAN HOUSING CORPORATION, a Minnesota non-profit corporation
("Consultant").
RECITALS
A. The Consultant has a division called The Housing Resource Center ("HRC").
GMHC has agreed to provide certain Services.through HRC (as defined below) in connection
with the HRA's housing program.
B. The HRA desires to hire the Consultant to render this technical, professional, and
marketing assistance in connection with housing programs in the HRA for the term as set forth in
this Agreement.
C. Consultant is willing to provide such services on the terms and conditions set
forth herein.
In consideration of the foregoing recitals and following terms, conditions and mutual
promises contained herein,the parties agree as follows:
1. Scope of Services. The Consultant shall provide services as follows (the
"Services"):
a. Administer the following home improvement programs for residents of the City of
Richfield (the"City"): MHFA Fix Up Fund, Community Fix Up Fund
(collectively the MHFA programs):
1. Providing information to residents and property owners about the
programs,upon request;
2. Assist the HRA in marketing the programs;
3. Receipt of applications from residents;
4. Processing applications;
5. Closing loans to qualified applicants in accordance with the applicable
program;
6. Overseeing the draw process for the funds, including, as necessary,
reviewing draws, reviewing the progress of the work and collecting lien
waivers and certificates of occupancy. Consultant may, for this purpose,
rely on third-party representations and certifications.
7. Provide monthly reports about the number of loans closed and the balance
in each loan program.
fb.us.3166730.04 1
b. Assist City residents considering rehabilitation, including property visits, meet with
homeowners and potential contractors, suggest alternatives for rehabilitation to
homeowners, educate homeowners on the construction bid process, assist
homeowners to evaluate bids and work completed and construction progress.
c. Provide HRC housing information to City residents, including information on
emergency assistance, housing rehabilitation, first time homebuyers and limited
rental information;
d. Assist the HRA in developing programs to purchase and rehabilitate homes;
e. Coordinate these services out of Consultant's Minneapolis office; and
f. Have Consultant's staff visit residences as determined necessary by Consultant.
2. Term. This Agreement shall be in full force and effect from January 1, 2015 and
shall continue through December 31, 2015, unless otherwise terminated as set forth below.
3. Compensation. For services provided under this Agreement,the HRA shall pay
to the Consultant Seven Thousand Dollars ($7,000.00) within thirty(30) days after execution of
this Agreement. Pursuant to paragraphs lb through lf.
The Consultant shall receive compensation for administering the MHFA Programs directly from
the Minnesota Housing Finance Agency and not from the HRA. Pursuant to paragraph la.
4. Termination. Notwithstanding any other provision hereof to the contrary, this
Agreement may be terminated as follows:
a. The parties, by mutual written agreement, may terminate this Agreement at any
time in which case the parties shall agree to the amount of fees payable to
Consultant.
b. HRA may terminate this Agreement upon the breach by Consultant of any of its
material covenants contained herein, where such breach shall have continued for a
period of thirty (30) days following the receipt by Consultant of a written notice
from HRA, specifying the alleged breach; provided, however, if the nature of a
non-monetary breach is such that Consultant cannot reasonably cure same in the
thirty (30) day period, Consultant shall not be deemed to be in breach if it
commences to cure within the thirty (30) day period, and diligently pursues same
to completion within ninety (90) days following receipt by Consultant of such
written notice. In the event of termination by HRA hereunder, Consultant shall be
entitled to fees due to the date the notice of breach is sent by the HRA.
c. If Consultant or HRA (as applicable) (i) files a voluntary petition in bankruptcy
(ii) files a voluntary petition for reorganization under any bankruptcy law, statute
or regulation or other similar statute or regulation, (iii) is adjudicated a bankrupt,
(iv) makes an assignment for the benefit of creditors or applies for or consents to
fb.us.3166730.04 2
the appointment of a receiver or trustee as part of or in conjunction with a
"creditor plan"with respect to any substantial part of its assets, or(v) a receiver or
trustee is appointed, or an attachment or execution levied with respect to any
substantial part of its assets, and said appointment is not vacated, or the
attachment or execution not released, within sixty (60) days, then this Agreement
shall, effective as of such date, without notice or further action by either party,
immediately terminate.
d. Consultant may terminate this Agreement upon the breach by HRA of any of its
material covenants contained herein, where such breach shall have continued for a
period of thirty (30) days following the receipt by HRA of a written notice from
Consultant, specifying the alleged breach; provided, however, if the nature of a
non-monetary breach is such that HRA cannot reasonably cure same in the thirty
(30) day period, HRA shall not be deemed to be in breach if it commences to cure
within the thirty (30) day period, and diligently pursues same to completion
within ninety (90) days following receipt by HRA of such written notice. In the
event of termination by Consultant hereunder. Consultant shall be entitled to
retain the entire fee under this Agreement.
5. Insurance.
a. During the term of this Agreement, the Consultant shall obtain and maintain
workers compensation, comprehensive general liability, and automobile liability
insurance. Comprehensive general liability insurance shall have an aggregate
limit of Two Million Dollars ($2,000,000.00).
b. Upon request by the HRA, the Consultant shall provide a certificate or certificates
of insurance relating to the insurance required. Such insurance secured by the
Contractor shall be issued by insurance companies licensed in Minnesota. The
insurance specified may be in a policy or policies of insurance, primary or excess.
c. Such insurance shall be in force on the date of execution of an Agreement and
shall remain continuously in force for the duration of the Agreement.
6. Indemnification.
a. Notwithstanding anything to the contrary in this Agreement, the HRA, its officers,
agents, and employees shall not be liable or responsible in any manner to the
Consultant,the Consultant's successors or assigns,the Consultant's subcontractors,
or to any other person or persons for any third party claim, demand, damage, or
cause of action of any kind, nature, or character, including intentional acts, arising
out of or by reason of the performance of this Agreement by Consultant. The
Consultant, and the Consultant's successors or assigns, agree to protect, defend and
save the HRA, and its officers, agents, and employees, harmless from all third party
claims, demands, damages, and causes of action, to the extent caused by the
negligence or wrongful acts of Consultant, and the costs, disbursements, and
fb.us.3166730.04 3
expenses of defending the same, including but not limited to, attorneys fees,
consulting services, and other technical,administrative or professional assistance.
b. Nothing in this Agreement shall constitute a waiver or limitation of any immunity or
limitation of any immunity or limitation on liability to which the HRA is entitled
under Minnesota Statutes,Chapter 466, or otherwise.
7. Assignment. This Agreement shall not be assigned, sublet, or transferred, in
whole or in part without the prior written approval of the HRA.
8. Conflict of Interest. The Consultant shall use best efforts to meet all
professional obligations to avoid conflicts of interest and appearances of impropriety in
representation of the HRA. In the event of a conflict, the Consultant, with the prior written
consent of the HRA, shall arrange for suitable alternative services.
9. Compliance with Laws. The Consultant shall comply with all applicable
Federal, State, and local laws, rules, ordinances, and regulations at all times and in the
performance of the services pursuant to this Agreement.
10. Notices. Any notices permitted or required by this Agreement shall be deemed
given when personally delivered or upon deposit in the United States mail, postage fully prepaid,
certified,return receipt requested, addressed to:
Consultant: Greater Metropolitan Housing Corporation
15 South 5th Street, Suite 710
Minneapolis, MN 55402
ATTN: Suzanne Snyder
HRA: Richfield Housing and Redevelopment Authority
6700 Portland Avenue
Richfield, MN 55423
Or such other address as either party may provide to the other by notice given in accordance with
this provision.
11. Entire Agreement. This Agreement, any attached exhibits and any addenda or
amendments signed by the parties shall constitute the entire agreement between the HRA and the
Consultant, and supersedes any other written or oral agreements between the HRA and the
Consultant. This Agreement can only be modified in writing signed by the HRA and the
Consultant.
12. Third Party Rights. The parties to this Agreement do not intend to confer on
any third party any rights under this Agreement.
13. Counterparts. This Agreement may be signed in one or more counterparts but
all of which taken together shall constitute one instrument.
fb.us.3166730.04 4
14. Choice of Law and Venue. This Agreement shall be governed by and construed
in accordance with the laws of the state of Minnesota. Any disputes, controversies, or claims
arising out of this Agreement shall be heard in the state or federal courts of Minnesota, and all
parties to this Agreement waive any objection to the jurisdiction of these courts, whether based
on convenience or otherwise.
15. Agreement Not Exclusive. The HRA retains the right to hire other housing
program consultants,in the HRA's sole discretion.
16. Data Practices Act Compliance. Data provided to the Consultant or created by
the Consultant under this Agreement shall be administered in accordance with the Minnesota
Government Data Practices Act, Minnesota Statutes, Chapter 13, as amended.
[Signature Page Follows]
fb.us.3166730.04 5
IN WITNESS WHEREOF, the parties hereto have executed, or caused to be executed by
their duly authorized officials, this Agreement on the respective dates indicated below.
HRA:
RICHFIELD HOUSING AND REDEVELOPMENT AUTHORITY
By:
Its: Chairperson
Date: , 20_
By:
Its: Executive Director
Date: , 20_
CONSULTANT:
GREATER METROPOLITAN HOUSING CORPORATION
By:
Its: President
Date: , 20_
fb.us.3166730.04 6
The Greater Metropolitan Housing Corporation
HousingResource Center - Southside
Richfield Summary Status Report
Monthly Tracking Report - November 2014
Previous 2014 TOTAL TO
Counseling Related Activities Year Totals Jan '14 Feb '14 Mar '14 Apr'14 May '14 Jun '14 July'14 Aug '14 Sept '14 Oct'14 Nov'14 Dec '14 TOTAL DATE
Home Buyer Information 10 0 0 0 0 0 0 0 0 0 0 0 0 10
Refinance/Satisfactions/Subordination 2 0 0 0 0 0 0 0 0 0 0 0 0 _ 2
Construction Consultations (5) 235 9 9 6 2 0 4 0 2 0 2 0 34 269
-------------------
Energy Assistance (1) 5 0 0 0 0 0 0 0 _ 0 0 0 0 0 5
Mortgage Foreclosure Prevention 13 0 0 0 0 0 0 0 0 0 0 0 0 13
Home Improvement Information (2) 390 1 0 8 7 5 5 5 2 2 0 0 35 425
Rental/Emergency Housing Issues (3) 14 0 0 0 0 0 0 0 0 0 3 0 3 17
Other 9 0 0 0 0 0 0 0 0 0 0 0 0 9
MHFA Loan Products ..,
Loan Applications Mailed 166 1 1 8 1 7 5 5 5 6 2 3 1 1
1 44 210
Loan Applications Rec'd 39 0 0 0 3 4 4 2 1 0 1 1 16 55
Loans Closed 24 0 0 0 1 1 2 6 1 1 1 0 13 37
TOTAL SERVICES PROVIDED 865 11 10 14 9 5 9 18 12 5 10 2 0 105 970
f
TOTAL CLIENTS SERVED nit& 591 3 3 9 8 6 11 12 11 6 5 2 76 667
i
NOTE: These numbers reflect the number of CLIENTS serviced. In many instances a client will receive more than one service.
(1) ENERGY ASSISTANCE DENOTES REFERRALS TO SOCIAL SERVICE AGENCIES THAT PROVIDE MONETARY ASSISTANCE FOR ENERGY EXPENSES.
(2) HOME IMPROVEMENTS INCLUDES REFERRALS TO MHFA,CPED, PRIVATE LENDERS OR OTHERS FOR FINANCIAL INFORMATION ON HOME
(3) RENTAL/EMERGENCY HOUSING ISSUES IS A NEW CATEGORY AND WAS COMBINED WITH OTHER IN PREVIOUS YEARS.
(4)THIS CATEGORY INCLUDES ALL LOAN ADMINISTERED THROUGH THE HOUSING RESOURCE CENTERS INCLUDING MHFA PRODUCTS
(5)CONSTRUCTION CONSULTATION INCLUDE HOME VISITS AND TELEPHONE CONSULTATIONS ON RELATED MATTERS
AGENDA ITEM#: 4
REPORT#: 39
STAFF REPORT
44 e c HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
DECEMBER 15, 2014
REPORT PREPARED BY: JOHN STARK, COMMUNITY DEVELOPMENT
DIRECTOR
NAME,TITLE
REPORT PRESENTER: JOHN STARK, COMMUNITY DEVELOPMENT
DIRECTOR
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW:
REVIEWED BY EXECUTIVE DIRECTOR: �J 1:4111.=
° y
-
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution approving a Purchase Contract with Donald James Group, L.L.C.
for publicly-owned properties on the 7600 block of Pillsbury and Pleasant Avenues.
I. RECOMMENDED ACTION:
By Motion: Approve a resolution approving a Purchase Contract with
Donald James Group, L.L.C. for publicly-owned properties on the
7600 block of Pillsbury and Pleasant Avenues.
II. EXECUTIVE SUMMARY
On October 20, 2014 Donald James Group, L.L.C. (Developer) presented a concept plan
to a concurrent worksession of the City Council and the Housing and Redevelopment
Authority (HRA). The proposal calls for the redevelopment of the 7600 block of Pleasant
and Pillsbury Avenues with approximately 44 for-sale townhomes. The portion of this site
that previously contained the old City Garage building is owned by the City while the HRA
owns the remainder of the site.
At the worksession, Council Members and HRA Commissioners expressed support for the
concept of medium density for-sale townhomes on the site. There were,
however, concerns about the site layout, building materials and architecture. The
prospective Developer has since engaged a different architect to devise a plan that better
addresses those concerns.
121514 7600 Pillsbury Purchase Agreemenboa
With policy-level support of the proposal, the next step would be to draft a preliminary
agreement that would grant the Developer exclusive rights to make a proposal and would
have provisions that require the Developer to compensate the City/HRA for staff and
consultant expenses. In an effort to eliminate redundant activities, staff has recommended
that the City and HRA enter into joint agreements with the Developer rather than each
drafting and approving separate agreements.
On November 10th the City Council approved a motion to authorize the HRA and its staff
to negotiate a Preliminary Development Agreement and/or Purchase Agreement
(Agreement) with the Developer for the former City Garage site pending later City Council
ratification.
HRA legal counsel has drafted the attached Purchase Contract for the HRA's
consideration. This Agreement provides for the following:
• Sets the sales price of the property at its recently appraised (12/14) value of
$792,000 (prorated at the proportion of ownership as 32.75% [$259,380] to the HRA
and 67.25% [$532,620] to the City);
• Provides the Developer with "exclusive rights" to pursue a project on this site until
April 30, 2015.
• Requires the Developer to deposit earnest money in the amount of$39,600 (5% of
the entire property's value);
• Requires the Developer to pay for legal and financial analysis costs associated with
the proposal and up to $1,000 of staff costs;
• Is contingent on the Developer obtaining all Planning and Zoning approvals;
• Allows the Developer to access the site for environmental investigation and allows
the Developer to terminate this Agreement if they conclude that there are
environmental concerns;
• Requires both parties to enter into a Contract for Private Development which would
address any requested public assistance and establish the schedule and other
details of the construction of the proposed development.
It should be noted that while this Purchase Contract defers the provision of tax increment
financing (or any other public assistance) to being addressed in a future Contract for
Private Development, the Developer has indicated that such assistance will almost
certainly be requested.
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• The prospective Developer has made a proposal for the
redevelopment of publicly-owned land on the 7600 block of Pleasant
and Pillsbury Avenues that is consistent with the Comprehensive Plan
designation (Medium Density Housing) for that site.
• The City Council and HRA expressed general support of the type and
density of housing being proposed on the site at their October 20th
worksession.
B. POLICY
• On November 10th the City Council approved a motion to authorize
the HRA and its staff to negotiate a Preliminary Development
Agreement and/or Purchase Agreement with the Donald James
Group, L.L.C. for the former City Garage site pending later City
Council ratification.
C. CRITICAL TIMING ISSUES
• The Developer hopes to proceed with construction of this
development in the spring of 2015. In order to meet that goal, this
Purchase Contract, as well as the upcoming Contract for Private
Development, must be advanced.
D. FINANCIAL
• The Purchase Contract reflects the values of the properties as
established in an appraisal completed on December 9, 2014.
• The Purchase Contract requires the deposit of earnest money in an
amount of$39,600 (5% of the entire property's value).
• The Purchase Contract requires the Developer to deposit $7,500 into
a fund to be used to pay for legal and financial analysis costs
associated with the proposal and to replenish that fund when it is
drawn down to $2,000 or less.
• The Purchase Contract requires the Developer to pay up to $1,000 for
the reimbursement of staff costs (e.g. staff salaries expended on
managing this process).
E. LEGAL
• HRA Legal staff drafted the attached resolution and Purchase
Contract.
IV. ALTERNATIVE RECOMMENDATION(S)
• Approve the resolution with changes made to the Purchase Contract to
reflect the concerns or desires of HRA Commissioners.
• Continue consideration of this item until a later date in order to gather more
information.
• Deny approval of the resolution.
V. ATTACHMENTS
• Resolution
• Purchase Contract.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Donald James
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD,MINNESOTA
RESOLUTION NO.
RESOLUTION APPROVING A PURCHASE CONTRACT WITH DONALD JAMES GROUP
WHEREAS,the Housing and Redevelopment Authority in and for the City of Richfield,Minnesota
(the "Authority") is the owner of certain property (the "BRA Property") located within the City of
Richfield,Minnesota(the"City") legal described as follows:
211 W 76th Street
PID: 34-028-24-34-0070
The west 1/2 of that part of Lot 1 Block 4, lying east of the west 30 feet thereof; Also,
that part of Lot 2 and of the north 75 feet of Lot 3, said Block 4 lying west of the east
121.99 feet thereof, RC SOENS ADDITION, Hennepin County, Minnesota
7600 Pillsbury
PID: 34-028-24-34-0049
The east 1/2 of that part of Lot 1 lying east of the west 30 feet thereof, Block 4, RC
SOENS ADDITION, Hennepin County, Minnesota
7608 Pillsbury
PID: 34-028-24-34-0067
Municipality: RICHFIELD
Addition Name: R C SOENS ADDN
Lot: 002
Block: 004
The east 121.99 feet of Lot 2 Block 4,R C SOENS ADDN, Hennepin County, Minnesota
WHEREAS, the City is the owner of three separate parcels of property adjacent to the HRA
Property(the"City Property")legally described as follows:
7644 Pillsbury
PID: 34-028-24-34-0072
Lot 3, Block 4, except the north 75 feet thereof; also Lots 4 and 5, said Block 4; subject
to road; R C SOENS ADDN, Hennepin County, Minnesota
WHEREAS, on November 10, 2014,the City Council of the City appointed the Authority as the
agent of the City for the purposes of the sale and development of the City Property; and
WHEREAS, Donald James Group, L.L.C., a Minnesota limited liability company, or a related
party or affiliate (the "Developer"), has proposed to acquire and develop the HRA Property and the City
Property(collectively,the"Property") in order to construct market-rate townhomes (the"Development");
and
452627v1 JAE RC125-339
WHEREAS, the Board of the Authority has been presented with a Purchase Contract (the
"Contract") between the Authority and the Developer which sets forth the terms and conditions of the sale
of the Property to the Developer; and
WHEREAS, the Authority has reviewed the Contract and fmds that the execution thereof by the
Authority and performance of the Authority's obligations thereunder are in the best interest of the City and its
residents;and
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in
and for the City of Richfield,Minnesota as follows:
1. The Contract presented to the Authority and on file with the Community Development
Director is hereby in all respects approved, subject to modifications that do not alter the substance of the
transaction and that are approved by the Chairperson and Executive Director;provided that execution of such
document by such officials shall be conclusive evidence of approval.
2. The Chairperson and Executive Director are hereby authorized to execute the Contract on
behalf of the Authority and to carry out on behalf of the Authority the Authority's obligations thereunder.
3. This resolution shall be in full force and effect following the adoption by the City Council of
its resolution appointing the Authority as the agent for the sale and development of the City Property.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 15th day of December, 2014.
Suzanne M. Sandahl, Chair
ATTEST:
Doris Rubenstein, Secretary
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452627v1 JAE RC125-339
First Draft
November 10, 2014
PURCHASE AGREEMENT
THIS AGREEMENT is made as of this day of , 2014, by and
between and the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota, a public body corporate and politic under the laws of the State of Minnesota
("Seller") and [DEVELOPER NAME], a Minnesota ("Buyer").
RECITALS
Seller is the owner of property which is legally described on the attached Exhibit A (the
"HRA Property").
Seller has been appointed the agent of the City of Richfield (the "City") for purposes of
the sale and development of three separate parcels of land owned by the City of Richfield and
legally described in Exhibit B (the "City Property," and together with the HRA Property, the
"Property").
Buyer wishes to purchase the Property for the purposes of constructing approximately
market rate townhomes (the "Development") in accordance with the provisions of this
Agreement.
AGREEMENT
1. Offer/Acceptance for Sale of Property. Seller agrees to sell to Buyer the Property
and Buyer agrees to purchase the same, according to the terms of this Agreement.
2. Purchase Price for Property and Terms.
(a) Purchase Price: The total purchase price for the property is$792,000 (prorated at
the proportion of ownership as 32.75% [$259,380] to the HRA and 67.25% [$532,620] to
the City);
(b) Terms:
(1): Earnest Money. The sum of$39,600 is paid herewith by Buyer to Seller
as Earnest Money. If Closing does not occur, the Earnest Money will be returned to
Buyer after first deducting amounts equal to Seller's costs incurred in connection with
this transaction. The balance of the Purchase Price shall be due on the date of Closing
(the "Closing Date" or"Closing")
(2): Balance Due Seller: Buyer agrees to pay by electronic transfer of funds on
the Closing Date any remaining balance due according to the terms of this Agreement.
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(3): Deed and Marketable Title: Subject to performance by Buyer, Seller
agrees to execute and deliver a quitclaim deed conveying title to the HRA Property
to Buyer and cause the City to execute and deliver a quitclaim deed conveying title the
City Property to Buyer, subject only to the following exceptions:
a. Building and zoning laws, ordinances, state and federal regulations.
b. Reservation of minerals or mineral rights to the State of Minnesota, if any.
c. Public utility and drainage easements of record which will not interfere with
Buyer's intended use of the Property.
(4): Documents to be Delivered at Closing by Seller. In addition to the
quitclaim deeds required at paragraph 2B(3) above, Seller shall deliver to Buyer (for both
the HRA Property and the City Property):
a. Standard form Affidavit of Seller.
b. A "bring-down" certificate, certifying that all of the warranties made by
Seller in this Agreement remain true as of the Closing Date.
c. Certificate that Seller is not a foreign national.
d. Well disclosure certification, if required, or, if there is no well on the
Property, the Deed given pursuant to paragraph 2B(4) above must include the following
statement: "Seller certifies that Seller does not know of any wells on the described real
property."
e. Any other documents reasonably required by Buyer's title insurance
company or attorney to evidence that title to the Property is marketable and that
Seller has complied with the terms of this Agreement.
3. Contingencies. Seller's obligation to sell, and Buyer's obligation to buy the
Property is contingent upon the following:
a. Buyer's determination of marketable title pursuant to paragraph 4 of this
Agreement.
b. Buyer's determination, in its sole discretion, that the results of any
environmental investigation under this Agreement are satisfactory to
Buyer;
c. The Board of Commissioners of the Housing and Redevelopment
Authority in and for the City of Richfield (the "Board") conducting a
public hearing on the sale of the HRA Property and approving such sale
by resolution;
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d. Approval of this Agreement by the Board;
e. The City Council of the City of Richfield (the "City Council") conducting
a public hearing on the sale of the City Property and approving such sale
by ordinance (with two readings of such ordinance);
f. Approval of this Agreement by the City Council;
g. Completion of all land use approvals required for the Development,
including but not limited to the approval of a replat of the Property;
h. Buyer purchasing both the City Property and the HRA Property
simultaneously; and
i. Buyer and Seller successfully negotiating and executing a contract for
private development with respect to the Development.
Buyer shall have until the Closing Date to remove the foregoing contingencies. The
contingencies at a. and b. are solely for the benefit of Buyer and may be waived by Buyer. The
contingencies at c., d., e., f. and h. may not be waived by either party. The remaining contingencies
may be waived by mutual agreement of Seller and Buyer.
If one or more of Buyer's or Seller's contingencies is not satisfied, or is not satisfied on time, and is
not waived, this Agreement shall thereupon be void at the written option of either party, In such
event, Seller shall return the Earnest Money to Buyer (except as provided in Section 2B(I)), and
Buyer and Seller shall execute and deliver to each other a termination of this Agreement. As a
contingent Purchase Agreement, the termination of this Agreement is not required pursuant to
Minnesota Statutes, Section 559.21, et. seq.
4. Title Examination/Curing Title Defects. Buyer shall, at its expense and within a
reasonable time after Seller's acceptance of this Agreement, obtain a commitment for title
insurance ("Commitment") for the Property. Buyer shall have thirty (30) business days after
receipt of the commitment to examine the same and to deliver written objections to title, if any,
to Seller, or Buyer's right to do so shall be deemed waived. Seller shall have the option, but
not the obligation, until the Closing Date (or such later date as the parties may agree upon) to
cure such objections, at Seller's cost. In the event that Seller elects not to undertake a cure, or in the
event title to the Property cannot be made marketable or is not made marketable by Seller by the
Closing Date, then, unless Buyer elects to proceed to Closing without a cure to the objections,
this Agreement may be terminated by either party.
5. Inspections; Environmental Investigation. Pursuant to the terms of Section 13,
Buyer, its employees and agents, shall be entitled to enter upon the Property to conduct such
surveying, inspections, investigations, soil borings and testing, and drilling, monitoring,
sampling and testing of groundwater monitoring wells and conducting such other
environmental examination and tests as Buyer deems necessary. Seller agrees to provide Buyer
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a
with any and all environmental reports obtained by Seller or the City with respect to the
Property.
6. Real Estate Taxes and Special Assessments. Real estate taxes, if any, payable
in the year of Closing will be pro-rated between Buyer and Seller to the date of Closing. Seller shall
pay all real estate taxes payable in previous years, the entire unpaid balance of special
assessments, and all installments of special assessments levied and pending, including special
assessments payable after the year of Closing. Seller also agrees to pay all assessments related to
service charges furnished to the Property prior to the Closing Date (e.g., delinquent water or sewer
bills),including those charges levied,pending, or certified to taxes payable in the year of Closing.
7. Closing Date. The Closing Date will be on or before April 30, 2015. Delivery of
all purchase documents and the Closing shall be made at the offices of Seller, 6700 Portland
Avenue South, Richfield, Minnesota 55423, or at such other location as is mutually agreed
upon by the parties.
8. Property.
(a) Condition of Property, removals. Seller shall deliver possession of the Property
to Buyer at Closing in the same condition as the Property existed on the date of execution of this
Agreement.
(b) No encumbrances. Seller agrees not to place any liens or encumbrances on the
Property after the date of this Agreement.
9. Disclosures.
(a) Wells. Seller has provided Buyer with a separate well disclosure statement and
will provide a well disclosure certificate at Closing.
(b) Underground Storage Tanks. Seller represents that there are no underground
storage tanks on the Property.
(c) Sewer and water. Seller does not warrant whether the Property is connected
to the City sewer and water systems.
10. Seller's Representations and Warranties.
(a) Title. Seller has good, indefeasible and marketable fee simple title to the
Property. To the best knowledge of Seller, Seller is not aware of any easements, encroachments,
licenses, or boundary disputes concerning the Property that are not of record.
(b) Condemnation. There is no pending or, to the actual knowledge of Seller,
threatened condemnation or similar proceeding affecting the Property or any portion thereof, and
Seller has no actual knowledge that any such action is contemplated.
(c) Defects. Seller is not aware of any latent or patent defects in the Property, such as
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sinkholes, weak soils, unrecorded easements and restrictions.
(d) Legal Compliance. Seller has complied with all applicable laws, ordinances,
regulations, statutes, rules and restrictions pertaining to and affecting the Property and Seller
shall continue to comply with such laws, ordinances, regulations, statutes, rules and restrictions.
(e) Legal Proceedings. There are no legal actions, suits or other legal or
administrative proceedings,pending or threatened, that affect the Property or any portion thereof;
and Seller has no knowledge that any such action is presently contemplated.
(f) Legal Capacity. Seller has the legal capacity to enter into this Agreement. Seller
has not filed, voluntarily or involuntarily, for bankruptcy relief within the last year under the
United States Bankruptcy Code, nor has any petition for bankruptcy or receivership been filed
against Seller within the last year.
(g) Leases. There are no third parties in possession of the Property, or any part
thereof; and there are no leases, oral or written, affecting the Property or any part thereof.
(h) Conflict. Neither the execution nor the delivery of this Agreement nor the
consummation of the transaction contemplated herein will (i) conflict with, or result in, a breach
of the terms, conditions or provisions of, or constitute a default under, any agreement or
instrument to which Seller is a party; or (ii) violate any restriction to which Seller is subject; or
(iii) result in the acceleration of any encumbrance pertaining to the Property which will not be
paid off or discharged at Closing; or(iv)result in the creation of any lien, charge or encumbrance
upon the Property. Seller has not received any written notification of any outstanding violations
of any legal requirements, restrictions, conditions, covenants or agreements affecting the
Property.
(i) Liens. There are no outstanding contracts for any improvements to the Property
which have not been fully paid for, and Seller will discharge all mechanic's or materialmen's
liens arising from any labor or materials furnished to the Property prior to the Closing Date.
Seller's representations and warranties set forth in this Section shall be continuing and
are deemed to be material to Buyer's execution of this Agreement and Buyer's performance of
its obligations hereunder. All such representations and warranties shall be true and correct on
and as of the Closing Date with the same force and effect as if made at that time; and all of such
representations and warranties shall survive the Closing and any cancellation or termination of
this Agreement, and shall not be affected by any investigation, verification or approval by any
party hereto or by anyone on behalf of any party hereto. Seller agrees to defend, indemnify and
hold Buyer harmless for, from, and against any loss, costs, damages, expenses, obligations and
attorneys' fees incurred should an assertion, claim, demand, action or cause of action be
instituted, made or taken, which is contrary to or inconsistent with the representations or
warranties contained herein.
11. Exclusive Option to Buy Property. During the term of this Agreement, Seller
will not market the Property to other potential buyers and Buyer will have exclusive rights to
develop the Property.
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12. Escrow Account for Payment of Administrative Costs. Following the
execution of this Agreement, Buyer and Seller will work cooperatively to negotiate the terms of
a contract for private development related to the Property and the Development. During the term
of this Agreement, Buyer agrees to pay all Administrative Costs of Seller as described below.
As a precondition to execution of this Agreement by Seller, Buyer has deposited with
Seller funds a deposit in the amount of$7,500 to pay Administrative Costs. The deposit will be
used to pay "Administrative Costs,"which means out of pocket costs incurred by Seller, together
with staff costs (up to $1,000) and costs for the service of its consultants, including legal and
fiscal advisors attributable to or incurred in connection with the negotiation, preparation or
modification of this Agreement, the contract for private development, any modifications to the
tax increment documents and other documents related to the Development, and not previously
paid by Buyer.
At Buyer's request, but no more often than monthly, Seller will provide Buyer with a
written report including invoices, time sheets or other comparable evidence of expenditures for
Administrative Costs and the outstanding balance of funds deposited. If at any times that the
unexpended amount of the deposit is less than $2,000, Seller may notify Buyer in writing, and
Buyer shall have 10 business days to deposit additional funds so that the unexpended amount is
$7,500. If the additional deposit is not made within such period, the Seller may cease all
activities in connection with the Development until the deposit is made. If Administrative Costs
incurred, and reasonably anticipated to be incurred are less than the remaining deposit by Buyer,
Seller shall return to Buyer any funds not anticipated to be needed.
13. Right of Entry. Effective upon the date hereof, Seller hereby grants to Buyer, its
agents, employees, contractors and invitees, and such other consultants as Buyer may elect the right
to enter upon the Property, for the purpose of carrying out the activities described in Section 5.
In exchange for the right of entry provided by Seller,Buyer agrees to:
(a) Provide Seller at least 48 hours' notice of the date and time that Buyer will be on the
Property for the proposes described in Section 5;
(b) Buyer shall promptly pay, before any lien attaches, all charges for costs incurred
in connection with the work permitted under Section 5 and this Section 13.
(c) Provide a copy of all test results and reports obtained to Seller;
(d) Do no unnescessary damage to the Property and restore the Property to substantially
the same condition as the condition in which it was found by Buyer;
(e) Hold Seller harmless from and indemnify Seller from any and all claims, damages,
judgments or obligations, including the cost of defense of suit, arising out of damage to Property or
arising out of injury to anyone incurred or alleged to have been incurred in connection with or as a
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result of any work done pursuant to Section 5 and this Section 13, or as a result of Buyer's
intentional torts or negligence;
(f) Ensure that its consultants or their contractors or invitees which enter the Property
pursuant to this Agreement shall carry insurance during the time any work is done on the Property
in accordance with the following minimum requirements:
(i) Workers' Compensation Insurance with limits as provided by statute,with all
necessary statutory elections to provide coverage for and/or claims made by any person
doing work on the Property pursuant to this Section 13;
(ii) Employer's liability insurance (often included as coverage (b) in the
Workers' Compensation policy)with limits of$100,000;
(iii) Comprehensive General Liability Insurance (including coverage for
contractual liability, products and completed operations liability, liability arising out of
explosion, or underground related incidents) with minimum combined single limits of$1
million per occurrence.
14. Property Sold "As Is." Subject to Buyer's right to inspect and investigate the
Property as set forth in this Agreement, Buyer agrees to accept the Property on the Closing Date
"AS IS" with no right of set off or reduction in the Purchase Price. Such sale shall be without
representation of warranties, express or implied, either oral or written, made by Seller or any
official, employee or agent of Seller with respect to the physical condition of the Property,
including but not limited to, the existence or absence of petroleum, hazardous substances,
pollutants or contaminants in, on, or under, or affecting the Property or with respect to the
compliance of the Property or its operation with any laws, ordinances, or regulations of any
government or other body, except as stated in this Agreement. Buyer acknowledges and agrees
that Seller has not made and does not make any representations, warranties, or covenants of any
kind or character whatsoever, whether expressed or implied, with respect to warranty of income
potential, operating expenses, uses, habitability, tenant ability, or suitability for any purpose,
merchantability, or fitness of the Property for a particular purpose, all of which warranties Seller
expressly disclaims, except as stated in this Agreement. Buyer is relying entirely upon
information and knowledge obtained from its own investigation, experience or personal
inspection of the Property and on the representations, warranties and statements of Seller in this
Agreement. The foregoing provision shall survive Closing and shall not be deemed merged into
any instrument of conveyance delivered at Closing.
15. Broker Commission. Each party represents to the other that it has not utilized the
services of any real estate broker or agent in connection with this Agreement or the transaction
contemplated by this Agreement. Each party agrees to indemnify, defend, and hold harmless the
other party against and in respect of any such obligation and liability based in any way upon
agreements, arrangements, or understandings made or claimed to have been made by the party
with any third person.
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16. Closing Costs, Recording Fees, and Deed Tax. Buyer will pay: (a) the closing
fees charged by the title insurance or other closing agent, if any, utilized to close the
transaction contemplated by this Agreement; (b) the premium for title insurance policy, if any,
obtained by Buyer; and(c) any transfer taxes and recording fees required to enable Buyer to record
its deed from Seller under this Agreement. Seller will pay all other fees normally paid by sellers,
including fees and charges related to the filing of any instrument required to make title marketable.
Each party shall pay its own attorney fees.
17. Risk of Loss. It there is any loss or damage to the Property between the date
hereof and the Closing Date, for any reason including fire, vandalism, flood, earthquake or act of
God, the risk of loss shall be on Seller. If the Property is destroyed or substantially damaged
before the Closing Date, this Agreement shall become null and void, at Buyer's option. At the
request of Seller, Buyer agrees to sign a cancellation of Purchase Agreement.
18. Notice. Any notice, demand,request or other communication which may or shall be
given or served by the parties, shall be deemed to have been given or served on the date the same is
personally served upon one of the following indicated recipients for notices or is deposited in the
United States Mail, registered or certified, return receipt requested, postage prepaid and
addressed as follows:
(a) in the case of Buyer, is addressed to or delivered personally to Buyer at
,Attn: Donald James.
(b) in the case of Seller, is addressed to or delivered personally to Seller at
6700 Portland Ave. So., Richfield, MN 55423, Attn: Community Development Director.
19. Entire Agreement. This Agreement, the attached exhibits, and other amendments
signed by the parties, shall constitute the entire Agreement between Seller and Buyer and
supersedes any other written or oral agreements between the parties relating to the Property.
This Agreement can be modified only in a writing properly signed on behalf of Seller and
Buyer.
20. Amendment and Modifications. No amendment, modification or waiver of any
condition, provision or term of this Agreement shall be valid or have any effect unless made in
writing, is signed by the party to be bound and specifies with particularity the extent and nature of
such amendment, modification or waiver. Any waiver by either party of any default by the other
party shall not affect or impair any right arising from any previous or subsequent default.
21. Assignment. The rights, duties and obligations under this Agreement shall not be
assigned by either party without the a written amendment to this Agreement executed by the Buyer
and Seller.
22. Binding Effect. This Agreement binds and benefits the parties and their successors
and assigns.
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23. Cumulative Rights. Except as may otherwise be provided herein, no right or
remedy herein conferred on or reserved by either party is intended to be exclusive of any other right
or remedy provided by law, but such rights and remedies shall be cumulative in and in addition to
every other right or remedy given herein or elsewhere or existing at law, equity or by statute.
24. Default; Remedies; Specific Performance. If Buyer defaults in any of the
agreements herein, Seller may terminate this Agreement by giving written notice to Buyer. Buyer
shall have 30 days to cure the default and if Buyer fails to do so,this Agreement shall terminate and
Seller shall have no right to seek damages from Buyer. If Seller defaults under this Agreement,
Buyer shall give written notice to Seller. If Seller fails to cure such default within 30 days, Buyer
shall have the right to terminate this Agreement and Buyer may bring an action for specific
performance of this Agreement; provided that any action for specific enforcement must be brought
within six months after the date of the alleged breach.
25. Survival. Notwithstanding any other provisions of law or court decision to the
contrary, the provisions of this Agreement shall survive Closing.
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IN WITNESS WHEREOF,the undersigned have executed this Agreement on the date and
year above.
HOUSING AND REDEVELOPMENT [DEVELOPER NAME]
AUTHORITY IN AND FOR THE CITY
OF RICHFIELD
By:
By: Its:
Its Chair
And by:
Its Executive Director
The City of Richfield hereby acknowledges and consents to this Agreement.
CITY OF RICHFIELD
By:
Its Mayor
And by:
Its City Manager
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EXHIBIT A
LEGAL DESCRIPTION OF HRA PROPERTY
[Legal to be inserted prior to execution]
A-1
452492v2 JAE RC125-339
EXHIBIT B
LEGAL DESCRIPTION OF CITY PROPERTY
[Legal to be inserted prior to execution]
B-1
452492v2 JAE RC125-339