012015CompleteAgenda CITY OF RICHFIELD, MfNNESOTA
TUESDAY, JANUARY 20. 2015
RICHFIELD MUNICIPAL CENTER
6700 PORTLAND AVENUE
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
Call to order
Oath of office to HRA Commissioner Pat Elliott
1. Consideration of the election of the Richfield HRA officers for 2015
Staff Report No. 1
2. Approval of the minutes of the Regular HRA Meeting of December 15, 2014
3. HRA approval of the agenda
4. HRA Programs/Community Development 2014 Year in Review
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 on these items
is necessary. However, any HRA Commissioner may request that an item be removed
from the Consent Calendar and placed on the regular agenda for HRA discussion and
action. All items listed on the Consent Calendar are recommended.for approval.
A. Consideration of the approval of designating the Community Development Director
as the Acting Executive Director of the HRA for 2015 in the event the Executive
Director is absent from the City S.R. No. 2
B. Consideration of approval of the resolutions designating the official depositories for
the HRA, including collateral, for 2015 S.R. No. 3
C. Consideration of the approval of a resolution authorizing the right-of-way and utility
easement relating to Lot 16, Block 2, Iverson's Second Addition in favor of the City
of Richfield S.R. No. 4
D. Consideration of the approval of a resolution authorizing the Executive Director and
HRA Chair to execute instruments necessary to purchase three to four vacant and
foreclosed houses using up to $400,000 from the Housing and Redevelopment
Fund through December 31, 2015 SR. No. 5
6. Public hearing regarding a resolution authorizing the sale of 2517 West 76t" Street to
the Greater Metropolitan Housing Corporation and a contract for developm�nt with the
Greater Metropolitan Housing Corporation for the development of six townhomes
Staff Report No. 6
7. Consideration of an Affordable Housing Policy to assist in guiding future subsidized
housing development in the City of Richfield
Staff Report No. 7
8. HRA discussion items
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#: 1
REPORT#: 1
STAFF REPORT
;�� � ''� HOUSING AND REDEVELOPMENT
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AUTHORITY MEETING
JANUARy 20, 2015
REPORT PREPARED BY: CHERYL KRUMHOLZ, EXECUTIVE
COORDINATOR
Nanac,TiTLs
REPORT PRESENTER: STEVEN L. DEVICH, EXECUTIVE DIRECTOR
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: � N/A
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REVIEWED BY EXECUTIVE DIRECTOR: �� '
ITEM FOR HRA CONSIDERATION:
Consideration of the election of officers for the Richfield HRA for 2015.
I. RECOMMENDED ACTION:
By Motion: Elect officers for the Richfield HRA for 2015.
IL EXECUTIVE SUMMARY
The bylaws of the Richfield HRA provide that the HRA hold an annual meeting in
January. The bylaws further provide that the Chair, Vice Chair and Secretary of the
HRA be elected at this meeting.
Officers for 2014were:
Sue Sandahl, Chair
Mary Supple, Vice Chair
Doris Rubenstein, Secretary
III. BASIS OF RECOMMENDATION
A. BACKGROUND
01220fficersxxx
• The HRA bylaws require that an election of officers be held at the
annual meeting in January.
B. POLICY
• The HRA bylaws provide that the HRA hold an annual meeting in
January.
• The HRA bylaws provide that the Chair, Vice Chair and Secretary be
elected at the annual meeting in January.
C. CRITICAL TIMING ISSUES
• The bylaws of the HRA require that an election of officers for the HRA
be held at the annual meeting in January.
D. FINANCIAL
• N/A
E. LEGAL
• The bylaws of the HRA require that an election of officers for the HRA
be held at the annual meeting in January.
IV. ALTERNATIVE RECOMMENDATION�S�
• The HRA could decide to not hold an election. However, this would be
contrary to the HRA bylaws.
V. ATTACHMENTS
• None.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
HOUSING AND REDEVELOPMENT
�
AUTHORITY MEETING MINUTES
�I � ' � Richfield, Minnesota
Regular Meeting
December 15, 2014
CALL TO ORDER
The meeting was called to order by Chair Sandahl at 7:00 p.m.
ROLL CALL
HRA Members Sue Sandahl, HRA Chair; David Gepner; Mary Supple; Debbie Goettel,
Present: and Doris Rubenstein.
Staff Present: John Stark, Acting Executive Director; Karen Barton, Assistant Community
Development Director; and Cheryl Krumholz, Executive Coordinator.
Item #1 RECOGNITION OF OUT-GOING HRA CHAIR SUZANNE M. SANDAHL
The HRA Commissioners thanked Chair Sandahl for her service to the HRA and City.
Item #2 APPROVAL OF THE MINUTES OF THE (1) SPECIAL CONCURRENT HRA AND
CITY COUNCIL WORKSESSION OF OCTOBER 20, 2014 AND (2) REGULAR HRA
MEETING OF OCTOBER 20, 2014
M/Rubenstein, S/Goettel to approve the minutes.
Motion carried 5-0.
Item #3 HRA APPROVAL OF AGENDA
M/Supple, S/Rubenstein to approve the aqenda.
Motion carried 5-0.
Item #4 CONSENT CALENDAR
A. Consideration of the approval 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
S.R. No. 37
B. Consideration of the approval of the annual Consultant Services Agreement with the
Greater Metropolitan Housing Corporation for 2015 S.R. No. 38
HRA Meeting -2- December 15,2014
M/Goettel, S/Supple to approve the Consent Calendar.
Motion carried 5-0.
Item #5 CONSIDERATION OF A RESOLUTION APPROVING A PURCHASE CONTRACT
WITH DONALD JAMES GROUP, L.L.C. FOR PUBLICLY-OWNED PROPERTIES
ON THE 700 BLOCK OF PILLSBURY AND PLEASANT AVENUES S.R. NO. 39
Acting Executive Director Stark presented Staff Report No. 39.
Donald James, developer, was present to answer questions.
M/Goettel, S/Rubenstein that the followinq resolution be approved:
HRA RESOLUTION NO. 1190
RESOLUTION APPROVING A PURCHASE CONTRACT WITH DONALD JAMES GROUP
and to amend the purchase contract with the added provisions that "Item 3. Continqencies,"
be amended to include:
j Approval of the Site Plan Buildinq Desiqn and Buildinq Materials by the HRA
k Written acknowledqement from HRA Staff that thev are satisfied that the developer,
architect and builder have relevant proiect experience.
Motion carried 5-0. This resolution appears as HRA Resolution No. 1190.
Item #6 HRA DISCUSSION ITEMS
HRA Chair Sandahl presented to the HRA staff, the University of Minnesota School of Public
Affairs Local Government Innovation Award for the Kids at Home Program.
Item #7 EXECUTIVE DIRECTOR REPORT
None.
Item #8 CLAIMS AND PAYROLL
M/Goettel, S/Gepner that the followinq claims and pavrolls be approved:
U.S. BANK 11/17/14
Section 8 Checks: 125513-125623 168,493.65
HRA Checks: 32116-32134 $ 46,042.94
TOTAL $ 214,536.59
U.S. BANK 12/15/14
Section 8 Checks: 125624-125736 $ 177,870.80
HRA Checks: 32135-32156 $ 54,873.06
TOTAL $ 232,743.86
Motion carried 5-0.
HRA Meeting -3- December 15,2014
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:36 p.m.
Date Approved: January 20, 2015
HRA Chair
Cheryl Krumholz John Stark
Executive Coordinator Acting Executive Director
AGENDA ITEM#: SA
REPORT#: 2
STAFF REPORT
��� � f � HOUSING AND REDEVELOPMENT
m
AUTHORITY MEETING
JANUARY 20, 2015
REPORT PREPARED BY: CHERYL KRUMHOLZ, EXECUTIVE
COORDINATOR
NanrE,TiT�c
REPORT PRESENTER: STEVEN L. DEVICH, EXECUTIVE DIRECTOR
NaMC,Tirz.�
DEPARTMENT DIRECTOR IZEVIEW: � N� !
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REVIEWED BY EXECUTIVE DIRECTOR: �/ % `
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ITEM FOR HIZA CONSIDERATION:
Consideration of designating the Community Development Director as the Acting Executive
Director of the HRA for 2015 in the event the Executive Director is absent from the City.
I. RECOMMENDED ACTION:
By Motion: Designate the Community Development Director as the
Acting Executive Director of the HRA in the event the Executive
Director is absent from the City.
II. EXECUTIVE SUMMARY
Since the City Manager also serves as the HRA Executive Director, it is
recommended that the Community Development Director be designated by the
HRA as the Acting Executive Director to serve in that capacity during the absence
of the Executive Director.
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• Past practice has been for the HRA to designate an Acting Executive
Director for times when the Executive Director is absent from the City.
0122Acti n g E D i re cto rxxx
B. POLICY
• Typically, this designation is made at the first meeting in January of
each year.
C. CRITICAL TIMING ISSUES
• It is necessary to designate a person to serve as Acting Executive
Director to ensure continuation of HRA operations during an absence
of the Executive Director.
D. FINANCIAL
• This designation is at no additional cost to the HRA.
E. LEGaL
• N/A
IV. ALTERNATIVE RECOMMENDATION�S�
• The HRA could defer this designation to a future HRA meeting.
V. ATTACHMENTS
• None.
VL PRINCIPAL PARTIES EXPECTED AT MEETING
• None.
AGENDA ITEM#: SB
REPORT#: 3
STAFF REPORT
�s� � ` ''� HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
��� JANUARy Z0, 2015
REPORT PREPARED BY: CHRIS REGIS, FINANCE MANAGER
NAML,TITLE
REPORT PRESENTER: STEVEN L. DEVICH, EXEC. DIRECTOR
NAMG,TITI,E
DEPARTMENT DIRECTOR REVIEW: � N/
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REVIEWED BY EXECUTIVE DIRECTOR: �. �
ITEM FOR I�CONSIDERATION:
Consideration of resolutions designating official depositories for the Housing and
Redevelopment Authority for 2015, including the approval of collateral.
I. RECOMMENDED ACTION:
By Motion: Adopt the attached resolutions designating official
depositories, with the understanding that the HRA could not invest in
any of the depositories beyond the level of insurance coverage of the
pledged collateral.
II. EXECUTIVE SUMMARY
In compliance with Minnesota statutes, the Housing and Redevelopment Authority
of Richfield (HRA) must designate on an annual basis those financial institutions it
does business with.
The following resolutions for the HRA Board's consideration, designate U.S
Bank/4M Fund as a depository of HRA funds, and certain savings and loan
associations, banks, credit unions and certain financial institutions as depositories
for the investment of HRA funds.
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• N/A
B. POLICY
• In accordance with Minnesota Statutes Section 118A.01 - 118A.06, the
HRA of Richfield must designate financial institutions annually. The
institutions must pledge the collateral over and above the amount of
federal insurance, as public depositories.
• U.S. Bank acts as the banking institution in the HRA's banking
arrangement with the 4M Fund. Monies received, checks written, by the
HRA, flow through U.S. Bank, however, at the end of each business day,
any proceeds remaining in HRA U.S. Bank accounts are swept to the 4M
Fund to be invested. Therefore, at the end of the business day the HRA
accounts are zero, which means the collateral requirements of Minnesota
Statutes Section 118A.03 are not required. Accordingly, U.S. Bank has
met all other statutory requirements and should be considered as a
depository for the HRA's vendor accounts and all savings deposits.
• The HRA must also designate annually, certain savings and loan
associations, banks, and credit unions as official depositories for deposit
and investment of certain HRA funds. With approval of these official
depositories, the HRA will be able to invest funds in these institutions, not
exceeding the federal insurance of$250,000.
• Finally, a designation must be made for certain financial institutions as
depositories for the investment of HRA funds for 2015. These institutions,
such as investment brokerage firms, offer government securities in the
manner required by law. These financial institutions include U.S. Bank,
RBC Dain Rauscher, Raymond James & Associates, Northland Securities
and the 4M Fund.
G CRITICAL TIMING ISSUES
• N/A
D. FnvarrclAL
• N/A
E. LEGAL
• The HRA is required by Minnesota Statute 118A.01 - 118A.06, to
designate as a depository of funds, insured banks or thrift institutions.
Any collateral so deposited is accompanied by an assignment pledged
to the HRA in the amount specified in the attached resolutions.
IV. ALTERNATIVE RECOMMENDATION(S�
• The HRA could solicit other financial institutions for official depositories, but
past relationships with the depositories recommended have proven
satisfactory for the City.
V. ATTACHMENTS
• Resolution designating US Bank a depository of funds of the HRA of
Richfield for the year 2015.
• Resolution designating certain savings and loan associations, banks, and
credit unions as depositories for the investment of HRA funds in 2015.
• Resolution designating certain financial institutions as depositories for the
investment of HRA of Richfield funds in 2015.
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN FINANCIAL
INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF
HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2015
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 2014.
2. The following financial institutions designated as depositories for the Housing and
Redevelopment Authority of Richfield funds:
RBC Dain Rauscher, Inc. Raymond James & Assoc.
4M Fund U.S. Bank
Northland Securities, Inc.
3. The Treasurer and Finance Manager are hereby authorized to deposit the
Housing and Redevelopment Authority of Richfield funds in any or all of the
depositories herein designated. Such deposits may be made and withdrawn
from time to time by the Treasurer or Finance Manager's judgment and as the
interest of the Housing and Redevelopment Authority of Richfield dictates.
4. The investment of funds and the reporting thereof pursuant to this resolution
shall be conducted in accordance with established policies regarding the
investment of these funds.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 20th
day of January, 2015.
Chair
ATTEST:
Secretary
RESOLUTION NO.
RESOLUTION DESIGNATING U.S. BANK
A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD
FOR THE YEAR 2015
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;
, 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
20th day of January, 2015.
Chair
ATTEST:
Secretary
RESOLUTION NO.
RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS, BANKS
AND CREDIT UNIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING
AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2015
BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield,
Minnesota:
WHEREAS, pursuant to Minnesota Statutes, Sections 118A.01 — 118A.06,
municipal funds may be deposited in any Savings and Loan Association, Bank or Credit
Union which has its deposits insured by the Federal Deposit Insurance Corporation
(FDIC), or National Credit Union Administration (NCUA); and
WHEREAS, the amount of said deposits may not exceed the FDIC/NCUA
insurance covering such deposits which insurance amount is presently $250,000; and
WHEREAS, the deposit of Housing and Redevelopment Authority funds in Savings
and Loan Associations and Banks would provide greater flexibility in the Housing and
Redevelopment Authority's investment program and maximize interest income thereon.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment
Authority of Richfield, Minnesota, as follows:
1. It is hereby found and determined that it is in the best interest of the proper
management of Housing and Redevelopment Authority funds that certain
Savings and Loan Association and Banks be designated as additional
depositories for Housing and Redevelopment Authority funds for 2014.
2. It is further found and determined that the purpose of such depository
designation is to facilitate the proper and advantageous investments of Housing
and Redevelopment Authority funds and that such designation is not exclusive
nor does it preclude the deposit of any Housing and Redevelopment Authority
funds in other officially designated depositories of the Housing and
Redevelopment Authority.
3. The Treasurer and Finance Manager are hereby authorized to deposit Housing
and Redevelopment Authority funds in various depositories up to the amount of
$250,000, or such other amount as may be subsequently permitted by law, such
deposits to be in the form of demand accounts, payable to the Housing and
Redevelopment Authority of Richfield on the signatures of the Housing and
Redevelopment Authority Treasurer or Finance Manager. Such deposits may
be made and withdrawn from time to time by the Treasurer or Finance Manager
as his best judgment and the interests of the Housing and Redevelopment
Authority dictates.
4. The investment of funds and the reporting thereof pursuant to this resolution
shall be conducted in accordance with established policies of the Housing and
Redevelopment Authority regarding the investment of Housing and
Redevelopment Authority funds.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 20th
day of January, 2015.
Chair
ATTEST:
Secretary
AGENDA ITEM#: SC
REPORT#: 4
STAFF REPORT
.�►' � �' HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 2 0, 2 015
REPORT PREPARED BY: �REN BARTON, COMMUNITY
DEVELOPMENT ASSISTANT DIRECTOR
Nanrr.•,TiizE�
REPORT PRESENTER: ��N BARTON, COMMUNITY
DEVELOPMENT ASSISTANT DIlZECTOR
NAME,TLTLE
DEPARTMENT DIRECTOR REVIEW: � -
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REVIEWED BY EXECUTIVE DIRECTOR: � '`` � ' �
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ITEM FOR HRA CONSIDERATION:
Consideration of a resolution approving right-of-way and utility easement relating to Lot 16,
Block 2, Iverson's Second Addition in favor of the City of Richfield.
I. RECOMMENDED ACTION:
By Motion: Adopt the resolution approving the right-of-way and
utility easement relating to Lot 16, Block 2, Iverson's Second Addition
in favor of the Cit of Richfield.
II. EXECUTIVE SUMMARY
On February 19, 2013 the City of Richfield Housing and Redevelopment Authority
(HRA) and the City of Richfield (City) entered into a Cooperative Agreement relating
to the construction of Richfield Parkway, which included widening of the road
between 66th Street and Bloomington Avenue.
Due to the significant amount of right-of-way that was needed for the Richfield
Parkway Project, the City acquired all or portions of 13 properties located on 17th
Avenue in the project area.
The HRA owns the property legally described as Lot 16, Block 2, Iverson's Second
Addition located in the project area and in accordance with the terms of the
01202015 Richfield Parkway Right-of-Way easementxxx
Cooperative Agreement, agreed to convey to the City the easements necessary for
the construction of the Richfield Parkway Project.
The attached Resolution grants these easements to the City for right-of-way, utility
and drainage purposes.
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• On February 19, 2013 the HRA and the City of Richfield entered into a
Cooperative Agreement relating to the construction of Richfield
Parkway.
• The HRA owns property legally described as Lot 16, Block 2, Iverson's
Second Addition in the project area.
• The terms of the Cooperative Agreement state that the HRA agrees to
convey to the City the easements necessary for the construction of the
Richfield Parkway project.
B. PoLICY
• City of Richfield 2008 Comprehensive Plan Goals:
o Improve the flow of traffic in the City
o Place utilities underground wherever possible
C. C�TICaL Trn�nvG IssuEs
• The parkway project has been completed and easements must be
recorded.
D. F�rrarrclaL
• N/A
E. LEGAL
• The HRA attorney has reviewed the Cooperative Agreement and
drafted the resolution granting the easements.
IV. ALTERNATNE RECOMMENDATION(S�
• N/A
V. ATTACHMENTS
• Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
HRA RESOLUTION NO.
RESOLUTION APPROVING RIGHT-OF-WAY AND
UTILITY EASEMENT IN FAVOR OF
THE CITY OF RICHFIELD
BE IT RESOLVED By the Board of Commissioners of the Housing and Redevelopment
Authority of Richfield, Minnesota (the "Authority") as follows:
WHEREAS, the City of Richfield (the "City") and the Authority have entered into that certain
Richfield Parkway Cooperative Agreement, dated February 19, 2013 (the "Cooperative
Agreement") in conjunction with the construction of the Richfield Parkway Phase II Project
(Improvement Project No. CP-41007 (North Richfield Parkway)), which includes reconstruction and
widening of Richfield Parkway from 66th Street to Bloomington Avenue in the City (the "Richfield
Parkway Project"); and
WHEREAS, due to the significant amount of right-of-way that is needed for the Richfield
Parkway Project, the City acquired all or portions of 13 properties located on 17th Avenue (the
"Assembled Property"); and
WHEREAS, the Authority owns the property legally described as Lot 16, Block 2, Iverson's
Second Addition (the "HRA Parcel") and, in accordance with the terms of the Cooperative
Agreement, has agreed to convey to the City the easements necessary for the construction of the
Richfield Parkway Project over the HRA Parcel; and
WHEREAS, there has been presented before the Board of the Authority an Easement (the
"Easement") from the Authority in favor of the City pursuant to which the Authority will grant an
easement for right-of-way purposes and drainage and utility purposes over certain portions of the
HRA Parcel, subject to the terms and conditions of the Easement; and
WHEREAS, the Board of the Authority finds it necessary to grant the proposed easements for
purposes of the Richfield Parkway Project.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in
and for the City of Richfield, Minnesota as follows:
1. The proposed Easement is hereby approved in all respects.
2. The Chairperson and Executive Director are hereby authorized to execute and
deliver the Easement in substantially the form on file with the Authority, with such additions,
deletions, and other changes as are approved by the Chairperson and Executive Director. The
Chairperson and Executive Director are further directed to take all steps and do all things
necessary to effectuate the provisions of the Easement.
Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 20th day
of January, 2015.
Chair
ATTEST:
Secretary
AGENDA ITEM#: SD
REPORT#: 5
STAFF REPORT
� � ' j' HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 20, 2015
REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON, HOUSING
SPECIALISTS
NAAdE,TITLE
REPORT PRESENTER: ��N BARTON, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
Nar�rE TiTLc
DEPARTMENT DIRECTOR REVIEW: � � �-.,
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REVIEWED BY EXECUTNE DIRECTOR: �' '� �` �` �"`"�� `9 �
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ITEM FOR HIZA CONSIDERATION:
Consideration of a resolution authorizing the Executive Director and Housing and
Redevelopment Authority Chair to execute instruments to purchase vacant and foreclosed
ro erties usin the Housin and Redevelopment Fund.
I. RECOMMENDED ACTION:
By Motion: Approve a resolution authorizing the Executive Director
and Housing and Redevelopment Authority Chair to execute
instruments necessary to purchase three to four vacant and
foreclosed houses using up to $400,000 from the Housing and
Redevelo ment Fund throu h December 31, 2015.
II. EXECUTIVE SUMMARY
Annually, the Housing and Redevelopment Authority (HRA) budgets funds to
purchase properties to further the Richfield Rediscovered and New Home Programs
by removing small, substandard, obsolete, or dilapidated homes and then replacing
them with new homes. The market of vacant and foreclosed properties is
competitive, and flexibility to respond quickly is important. Lenders and other non-
profits enforce strict timelines and require a response to purchase within days.
012015 Foreclosure Purchase Authority.doc
Staff is requesting to extend the authorization through 2015 to allow the Executive
Director and HRA Chair the authority to acquire foreclosed properties meeting the
following parameters, without obtaining prior HRA approval for each property:
• The property is foreclosed or vacant;
• The property is blighted (as defined and required by the regulations
governing the Housing and Redevelopment Fund);
• Prior to acquisition, staff establish an appropriate sale price based on recent
sales activity and/or assessed value and housing condition; and
• Expenditures for all properties do not exceed a total of$400,000.
Staff will continue to report back to the HRA each month with a status of acquisition
activity.
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• The HRA authorized the Executive Director and HRA Chair to execute
instruments necessary to purchase vacant and foreclosed houses
since 2010.
B. POLICY
• It is in the best interest of the City to ensure neighborhood stability and
reduce blight.
• Through the City's Richfield Rediscovered Program, the HRA
purchases and removes substandard and functionally obsolete
housing and replaces it with newer, higher valued homes.
• Through the City's New Home Program, the HRA purchases and
removes substandard and functionally obsolete homes and replaces
them with newer, affordable priced homes.
• The 2008-2018 Richfield Comprehensive Plan states as policy:
o Encourage the creation of "move-up" housing through
new construction and home remodeling.
o Promote the development of a balanced housing stock
that is available to a range of income levels.
C. CRITICAL TIMING ISSUES
• Richfield has suffered a significant number of foreclosures since 2008.
While the inventory has decreased significantly, there continues to be
opportunities to purchase foreclosed properties.
• Neighborhoods in which there are one or more foreclosed and vacant
homes have detrimental impacts on the surrounding property values.
• In addition to being in poor condition, some foreclosed properties have
function, layout, size and other issues that make them candidates for
the Richfield Rediscovered Program.
• The Richfield Rediscovered and New Home Program funds can be
used to purchase vacant and foreclosed properties to accomplish
HRA goals throughout the City of Richfield.
• Authorization to utilize these two HRA programs would be limited to
purchasing vacant and foreclosed properties only. If other purchasing
opportunities arise, staff would seek an appraved Purchase
Agreement by the HRA before moving forward with purchasing
activities.
D. FINANCIAL
• The 2015 budget designates $300,000 for acquisition activities under
the Richfield Rediscovered Program.
• The 2015 budget designates $100,000 for acquisition activities under
the New Home Program.
• Funding for this program is allocated through the HRA Housing and
Redevelopment Fund.
• Total acquisition expenditures will not exceed the budgeted amount of
$400,000 total.
E. LEGAL
• Legal counsel prepared the resolution.
IV. ALTERNATNE RECOMMENDATION�S�
• Do not extend the authorization for the Executive Director and HRA Chair to
execute agreements to purchase foreclosed homes.
V. ATTACHMENTS
• Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING THE HOUSING AND REDEVELOPMENT AUTHORITY
STAFF TO ACQUIRE CERTAIN FORECLOSED HOMES WITHIN THE CITY AND TO
EXECUTE ALL INSTRUMENTS AND CONTRACTS RELATED THERETO
WHEREAS, pursuant to Minnesota Statutes, Sections 469.001 to 469.047 (the
"HRA Act") the City Council of the City of Richfield, Minnesota (the "City") has created the
City of Richfield Housing and Redevelopment Authority (the "HRA") and provided it with
the powers and duties of the HRA Act; and
WHEREAS, the HRA Act authorizes the HRA to acquire, improve, own, hold, sell,
lease, exchange, transfer, assign, pledge or dispose of any real or personal property; and
WHEREAS, the HRA has undertaken a multi-faceted response to the impact of the
foreclosure crisis on the community involving the use of the Housing and Redevelopment
Fund to acquire and demolish substandard, vacant, foreclosed single family homes; and
WHEREAS, in order to expand the effectiveness of the Program the HRA wishes
to directly purchase certain foreclosed properties to demolish and hold the lots for future
development; and
WHEREAS, it is the desire of the HRA Board of Commissioners to establish
certain parameters for such acquisitions and to authorize its Executive Director and HRA
Chair to proceed therewith without specific Board approval of each transaction.
NOW, THEREFORE, BE IT RESOLVED by the City of Richfield Housing and
Redevelopment Authority:
1. That the Executive Director and HRA Chair, with the assistance of HRA legal
counsel, is hereby authorized to enter into Purchase Agreements and acquire in the
name of the Authority up to four (4) single family, vacant, foreclosed homes (the
"Properties") on the conditions that:
(a) The Properties are each acquired with the Housing and Redevelopment
Fund;
(b) Each Property is a foreclosed property acquired from a lender or a lender's
designee;
(c) The Properties have been vacant for at least 90 days prior to entering into a
Purchase Agreement;
(d) The Property is determined to be blighted as required by Housing and
Redevelopment Fund regulations;
(e) Prior to each acquisition staff establish an appropriate sale price based on
reasonable conditions;
(� The total expenditures on all properties does not exceed $400,000; and
(g) Prior to the acquisition of each property staff conducts appropriate due
diligence to protect the HRA's interest.
2. That the Executive Director and HRA Chair are authorized to execute such
documents as shall be required in order to carry out the delegation provided in
paragraph 1 hereof.
3. That the Executive Director shall report the acquisition of any Property pursuant to
this Resolution at the next regular HRA meeting.
4. That disposition of acquired Properties shall be only by action of this Board.
5. That the authority granted hereby shall expire on December 31, 2015.
Adopted by the Richfield Housing and Redevelopment Authority in and for the City
of Richfield, Minnesota this 20th day of January, 2015.
Chair
ATTEST:
Secretary
AGENDA ITEM#: 6
REPORT#: 6
STAFF REPORT
:�r' � ' f'' HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 20, 2015
REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON, HOUSING
SPECIALIST
N�E Tirr,�
REPORT PRESENTER: ��N BARTON, ASSISTANT COMMUNITY
DEVELOPMENT DIlZECTOR
NAMF„ TITLE
DEPARTMENT DIlZECTOR REVIEW: � � '
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i� SICNA �--^^�-
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REVIEWED BY EXECUTNE DIRECTOR: � �' '��'�`� ''� � i f `
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ITEM FOR HRA CONSIDERATION:
Public hearing to consider sale of 2517 West 76th Street to the Greater Metropolitan Housing
Cor oration for the construction of six townhomes.
I. RECOMMENDED ACTION:
Conduct and close the public hearing and by motion:
Approve a resolution authorizing the sale of 2517 West 76th Street
to the Greater Metropolitan Housing Corporation, and approve a
Contract for Development with Greater Metropolitan Housing
Corporation for the development of six townhomes.
II. EXECUTIVE SUMMARY
The Greater Metropolitan Housing Corporation (GMHC) is proposing to purchase
2517 West 76th Street from the Housing & Redevelopment Authority (HRA) for the
development of six attached townhomes. The townhomes will offer single-level-
living in a combination of two and three-bedroom units.
The four interior units will offer 2,400 square feet of finished living and include two
bedrooms, two baths and a single car garage, with an estimated sale price of
$250,000. The two end units will offer 2,800 square feet of finished living and
01202015 2517 West 76`h Street sale to GMHC.docx
include three bedrooms, a den, three baths, and a two-car garage, with an
estimated sale price of$290,000.
The proposed homes have a traditional design and height that will complement the
existing homes in the area. While finished space is available in the lower levels, the
units offer single-level living on the main level, making the units appealing to empty
nesters and retirees. The homes will also incorporate green design and efficiency
standards, using the Minnesota Green Communities Criteria.
The HRA purchased the property utilizing Federal Community Development Block
Grant (CDBG) funds which requires that 51 percent of the units be developed as
housing affordable to households with incomes no greater than 80 percent of the
Twin Cities Area Median Income (AMI). The four two-bedroom units will be sold to
qualifying households and the two three-bedroom units will be sold with no income
restrictions.
GMHC and the HRA will enter into a Contract for Development (Contract) for the
purchase of the property and subsequent construction of the townhomes. The
Contract provides for sale of the property to GMHC for $1 and for the use of HRA
Housing and Redevelopment funds to cover the remaining $64,000 gap between
the cost of development and the anticipated sale proceeds. Housing and
Redevelopment funds can be used towards construction costs of units that meet
State Statute income requirements.
III. BASIS OF RECOMMENDATION -�
A. BACKGROUND
• In 2010 the HRA purchased the property at 2517 West 76th Street
with CDBG funds under the HRA's New Home Program.
• The house did not qualify as substandard; therefore, the Housing and
Redevelopment Fund could not be used to purchase the property.
• The property had been on the market for several years. The house's
large size, outdated features, and location adjacent to busy 76th
Street and the Crossroads at Penn apartment complex made it difficult
to sell as a single family residence.
• The property is guided for medium density housing in the
Comprehensive Plan, which calls for a density of between 7 and 12
units an acre. Medium density townhomes offer an appropriate land
use transition between the single family neighborhood located to the
west and the high density rental housing to the east.
• The New Home Program provides for homes to be sold to households
earning up to 80 percent of AMI ($51,500 for a family of two).
• Since 1981, the HRA has partnered with nonprofit developers to
construct 50 affordable homes through the HRA's New Home
Program, with seven of those being constructed in the past ten years.
• GMHC has the experience, capability, and financial security to
develop the property and has previously constructed five homes in
Richfield and rehabilitated and sold an additional seven through the
Neighborhood Stabilization Program.
B. POLICY
• The New Home Program implements the goal of the Comprehensive
Plan to ensure sufficient diversity in the housing stock to provide for a
range of household sizes, income levels and needs. The Program
carries out the policies that support this goal including:
o Promote the development of a balanced housing stock
that is available to a range of income levels.
o Promote the development, management and
maintenance of affordable housing in the City through
assistance programs, alternative funding sources, and
the creation of partnerships whose mission is to promote
low to moderate income housing.
• The proposed housing is consistent with the Housing Vision
Statement, accepted by the City Council and HRA in June 2013. The
Statement calls for a full range and balance of housing types in the
community that match the choices of residents at every stage of their
lives.
• The design of the housing allows for single-level living. Low
maintenance, single level townhomes have been identified as a high
need in the community.
C. CRITICAL TIMING ISSUES
• The planning approval process will begin following HRA approval of
the Contract for Development and the property will be rezoned
consistent with the Comprehensive Plan designation of inedium
density residential.
• The Contract requires closing on the property to occur by September
1, 2015 and construction to be completed by September 1, 2016.
• The City approved a Land Disposition Agreement with Hennepin
County in 2013 that requires the property to be developed with new
housing affordable to low and moderate-income households by April
2015. Entering into a contract for development by this date meets the
Agreement requirements.
• If the property cannot be developed meeting the CDBG requirements,
it must be sold at market value and all sale-proceeds returned to
Hennepin County.
D. FINANCIAL
• In 2010, the property was purchased for $300,000 using Federal
CDBG funds.
• CDBG guidelines require that 51 percent of the units be sold to
households earning less than 80 percent of the Twin Cities area
median income (AMI).
• CDBG guidelines do not require repayment of acquisition costs if the
property is developed with 51% or more affordable housing.
• A 2011 appraisal valued the vacant property at $126,000.
• The property would be sold to GMHC for $1.
• The overall cost of development will be $1,643,000, while the income
generated from the units sales will be approximately $1,580,000. The
estimated gap of$64,000 between the cost to construct and the sale
proceeds will be financed by the HRA Housing and Redevelopment
Fund, and will be utilized for hard costs associated with the
construction of the affordable units.
E. LEGAL
• Federal CDBG funds were used to purchase the property, which
require that 51 percent of the units be developed as housing
affordable to households with incomes no greater than 80 percent of
the AMI.
• Notice of the public hearing was published in the Sun Current on
January 8, 2015.
• Mailed notice was sent as a courtesy to homeowners and occupants
living nearby.
• The HRA Attorney prepared the Contract for Development.
• Minnesota State Statute allows for use of Housing and
Redevelopment funds towards the construction costs of housing units
available to households at 100 percent of AMI for a family of two or
less, or 115 percent of AMI for families of three or more.
IV. ALTERNATNE RECOMMENDATION(S�
• Do not approve the resolution authorizing sale of the property to GMHC.
V. ATTACHMENTS
• Resolution
• Photo of the lot
• Contracts for Development
• Site Plan
• Elevations
• Floor Plans
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Bill Buelow and Eden Spencer, Greater Metropolitan Housing Corporation
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING SALE OF REAL PROPERTY LOCATED AT
2517 WEST 76TH STREET TO THE GREATER METROPOLITAN HOUSING COPRPORATION
IN ACCORDANCE WITH A CONTRACT FOR DEVELOPMENT
WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota (HRA) desires to develop certain real property pursuant to and in furtherance of the
New Home Program adopted by the HRA, said real property being described as follows:
That part of the East 3/ of the Southeast Quarter of the Southeast Quarter (SE '/4 of SE '/4)
of Section Thirty-two (32), Township Twenty-eight (28), Range Twenty-four (24), described
as commencing at the northwest corner of said East 3/4 of the SE '/4 of the SE ��4� thence
East along the North line of said SE %4 of the SE '/4 170 feet; thence South parallel with the
West line of said East 3/4 of SE %4 of the SE %4 258 feet; thence West parallel with the North
line of said SE %4 of the SE %4 170 feet to the West line of said East 3/4 of the SE %4 of the SE
'/4; thence North along said West line of East 3/ of the SE %4 of the SE %4 to the point of
beginning, according to the United States Government Survey thereof and situate in
Hennepin County, Minnesota (Property),
WHEREAS, the HRA is authorized to sell real property within its area of operation after
public hearing; and
WHEREAS, a developer, the Greater Metropolitan Housing Corporation, has been
identified as the purchaser of the described property and in accordance with a Development
Agreement; and
WHEREAS, a public hearing has been held after proper public notice.
NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority in
and for the City of Richfield:
1. A public hearing has been held and 2517 West 76th Street is authorized to be sold for
$1.00 to the Greater Metropolitan Housing Corporation in accordance with a Development
Agreement with the HRA.
2. The Chairperson and Executive Director are authorized to execute a Contract for
Development and other agreements as required to effectuate the sale to the Greater
Metropolitan Housing Corporation.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota this 20th day of January, 2015.
Chair
ATTEST:
Secretary
Photo of 2517 West 76t" Street
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West-facing Single-family homes (7600 Sheridan Avenue)
CONTRACT FOR DEVELOPMENT
Between
THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD, MINNESOTA
, and
THE GREATER METROPOLITAN HOUSING CORPORATION
at
2517 76TH STREET WEST, RICHFIELD
This Instrwuent Drafted by:
Tlie Housing and Redevelopment Authorit��
in and for tiie City of Richfield
6700 Portland A��euue South
Richfield,AZinnesota 55423
Telephone: (612)861-9760
CONTRACT FOR DEV�LOPMENT
THIS CONTRACT FOR DEVELOPMENT (Agreement), made and entered into as of
this_of , 2015, by and between the Housing and Redevelopuient Authority in and
for the City of Richfield, a body corporate and politic under the laws of the State of Minnesota,
having its principal office at 6700 Portland Avenue, Richfield, Minnesota (HRA), and The Greater
Metropolitan Housing Corporation (GMHC ), a non-profit corporation under the laws of Minnesota,
having its principal office at 15 South Sth Street, Suite 710, Minneapolis, MN 55402 (Developer).
WITNESSETH:
WHEREAS, the HRA has purchased the property at 2517 76`" 5treet West, Richfield,
legally described as follows:
That part of the East 3/a of the Southeast Quarter of the Southeast Quarter(SE '/a of SE �/a) of
Section Thirty-two (32), Township Twenty-eight(28), Range Twenty-four(24), described as
comtnencing at the northwest corner of said East 3/a of the SE �/a of the SE 1/a; thence East
along the North line of said SE 1/a of the SE �/a 170 feet; thence South parallel with the West
line of said East 3/a of SE '/a of the SE '/a 258 feet; thence West parallel with the North line of
said SE �/a of the SE 1/ 170 feet to the West line of said East 3/a of the SE �/a of the SE �/a;
thence North along said West line of East 3/a of the SE '/a of the SE '/a to the point of
beginning; according to the United States Government Survey thereof and situate in
Hennepiu County, Minnesota(Property),
for the purpose of providing affordable housing in the City; and
WHEREAS, the HRA purchased the Property with monies fi•om the Community
Development Block Grant Program (CDBG); and
WHEREAS, the City of Richfield (City) and the HRA have previously ci•eated and
established a New Home Progratn pursuant to the authoi•ity granted in Minnesota Statutes, Sections
469.001 through 469.047; and
WHEREAS, the Developer has proposed the I�nprovements, as hereinafter defined, for the
Property which the HRA has determined will promote and carry out the objectives for which the
Property was purchased; will assist in carrying out the objectives of the New Home Program; and
v��ill be in the vital best interests of the City, and the health, safety and welfare of its residents and in
accord with the public purposes and provisions of the applicable state and local laws and
requirements.
NOW, THEREFORE, in consideration of the mutual covenants and obligations of the
HRA and the Developer, each party does hereby r•epresent, covenant and agi•ee with the other as
follows:
ARTICLE I.
1
DEFINITIONS,EXHIBITS,RULES OF INTERPRETATION
Section 1.1. Definitions. In this Agreement, the following terms have the meaning given
below unless the context clearly requires otherwise:
(a) Building Plans. The plans and specifications submitted by the Developer to the
Building Official in comiection with its application for a building permit.
(b) Citv. The City of Richfield, Minnesota.
(c) Construction Plans. Collectively, the plans, drawings and related documents
related to the Improvements, which are listed on Exhibit A.
(d) Develouer. The Greater Metropolitan Housing Corporation (GMHC).
(e) Development. The Property and the Improvements to be constructed thereon
according to the Construction Plans approved by the HRA.
(f) Event of Default. Event of Default has the meaning given such term in Section 8.1.
(g) Holder. The tet�n "holder" in reference to a Mortgage includes a lender, any insur•er
or guarantor (other than the Developer) of any obligation or condition secured by such mortgage or
deed of ti•ust.
(h) Housin� and Redevelopment Authorities Act (HRA Act). Minnesota Statutes
Sections 469.001 through 469.047.
(i) HRA. The Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota.
(j) Imnrovements. A townhome development with approximately six (6) units of
owner-occupied housing to be constructed by the Developer on the Property, as more fully specified
iu the Construction Plans approved by the HRA.
(k) Mortga�e. 'I'he term "moi•tgage" shall include the tnor•tgages referenced in Ai�ticle
VI of this Agreement and any deed of trust or other instrument creating an encumbrance or lien
upon the Property of any part thereof, as security for a loau.
(1) New Home Program. HRA program to encourage development of new housing
opportunities for low to nloderate income buyers.
(m) Pronertv. The real property legal described as:
Lot 4, Block 4, Blair's Wooddale Third Addition, Hennepin County, Minnesota, according
to the inap or plat thereof on file or of record in the office of the Hennepin County Recorder.
2
having a street address of:
2517 76`" Street West, Richfield
(n) Quatified Buver. A purchasing individual or family whose income does not exceed
80 percent of the Twin Cities area median income and is qualified to buy the Property for their
occupancy.
(o) Una��oidable Delavs. Delays which are the direct result of strikes, labor troubles,
fire or other casualty to the Improvements, natural disasters, litigation commenced by third parties
which results in delays or acts of any federal, state or local government; except those contemplated
by this Agreement, which are beyond the control of the Developer.
Section 1.2 Exhibits. The following Exhibits are attached to and by reference made a part
of this Agreement:
A. List of Construction Plan Documents
B. Form of Quit Claim Deed
C. Form of Certificate of Completion
D. Pro Forma for Affordable Housing Project
Section 1.3 Rules of Internretation.
(a) This Agreement shall be interpreted in accordance with and governed by the laws of
the State of Minnesota.
(b) The words "herein" and "hereof' and words of similar import, without reference to
any particular section or subdivision refer to this Agreement as a whole rather than any particular
section or subdivision hereof.
(c) References herein to any particular section or subdivision hereof are to the section or
subdivision of this Agreement as originally executed.
(d) Auy titles of the several parts, articles and sections of this Agreement are inserted for
convenience and reference only and shall be disregarded in construing or interpreting any of its
provisions.
ARTICLE II.
REPRESENTATIONS AND UNDERTAKINGS
Section 2.1 Bv the Developer. The Developer ulakes the following representations and
warranties as the basis for undertakings on its part herein contained:
3
(a) The Developer has the legal authority and power to enter into this Agreement, and
has duly authorized the execution, delivery and performance of this Agree�nent; and the
individual(s) who execute this Agreement on behalf of the Developer have the power and authority
to bind the Developer;
(b) The Developer has the necessary eyuity capital or will obtain commitments for
financing necessary for construction of the Improvements;
(c) The Developer will construct the Improvements in accordance with the terms of this
Agreement, the Construction Plans, and all local, state and federal laws and regulations;
(d) The Developer will obtain, in a timely manner, all required permits, licenses and
approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws
and regulations which must be obtained or met before the Improvements�nay be constructed; and
(e) The plans for the Improvements have been prepared by a qualified draftsper•son or
architect.
5ection 2.2 B�� the HRA. The HRA makes the following representations as the basis for
the undertaking on its part herein contained:
(a) The HRA is authorized by law to enter inro this Agreement, to cany out its
obligations hereunder, aud the individuals who execute this Agreement on behalf of the HRA have
the power and authority to bind the HRA; and
(b) The HRA will, in a timely manner, subject to all notification requirements, review
and act upon all submittals and applications of the Developer and will cooperate with the efforts of
Developer to secure the granting of any permit, license, or other approval required to allow the
construction of the Improvements; provided, however, that nothing contained in this subparagraph
2.2(b) shall be construed to limit iu any way the reasonable and legitimate exercise of the HRA's
disci•etion considering any submittal ot•application.
ARTICLE III.
ACQUISITION OF PROPERTY; CONVEYANCE TO DEVELOPER
Section 3.1 Sale of Propertv to De��eloper. The HRA is the fee owner of the Property.
The HRA agrees to sell the Property to the Developer and the Developer agrees to purchase the
Pi•operty fi•om the HRA in an "as is" condition. The HRA agrees to convey the Property to the
Developer by Quit Claim Deed in the general form of Exhibit B. The purchase price for the Property
will be$1.
Section 3.2 Title and Examination. As soon as reasonably possible after execution of this
Agreement by both parties,
4
(a) HRA shall surrender any abstract of title and a copy of any owner's title iusurance
policy for the property, if in HRA's possession or• coutrol, to Developer or to Developer's
designated title service provider; and
(b) Developer shall obtain the title evidence deterinined necessary or desirable by
Developer or Develol�er's lender, including but not limited to title searches, title examinations,
abstracting, a title insurance commitment or an attoiney's title opinion, at Developer's selection and
cost, and provide a copy to the HRA.
The Developer shall have 20 days from the date it receives such title evidence to raise any
objections to title it may have. Objections not made within such time will be deemed waived. The
HRA shall have 90 days fi•o�n the date of such objection to affect a cure; provided,however, that the
HRA shall have no obligation to cure auy objections, and may inform Buyer of such. The Buyer
may then elect to close notwithstanding the uncured objections or declare this Agreement null and
void, and the parties will thereby be released from any further obligation hereunder.
Section 3.3 Well Disclosure. Seller does not know of any wells on the property.
Section 3.4 ClOS1IlE. Closing on the Property will take place on or before September 1,
2015, or such other date as may be agreed to by the parties in writing. At closing, the Developer
will provide the HRA with the purchase price of the property. If closing has not occurred by
September 1, 2015, either party may terminate this Agreement.
Section 3.5. Closin� Costs. The Developer will pay: (a)the closing fees charged by its title
insurance company or other closing agent, if any, utilized to close the transaction for
Developer; and(b) the recording fees for the Contract for•Developnient and the deed transfeiring title
to the Developer. The HRA will pay all other fees norinally paid by sellers, including: any transfer
taxes, and any fees and charges related to the filing of any instrument required to make title
marketable. Each party shall pay its own attorney fees.
Section 3.6. Sewer and Water. HRA warrants that city water is available at the lot line
and city sewei• is available at the curb.
Section 3.7. ISTS Disclosure. HRA is not aware of any individual sewage treatment
system on the property. Developer is responsible for all costs of removing any individual sewage
treatment system that may be discovered on the Property.
Section 3.8. Taxes and Snecial Assessinent. Real estate taxes and installments of special
assessments will be prorated between the HRA and Developer as of the date of closing.
Section 3.9 Soil Conditions and Hazardous Wastes. The Developer acknowledges that
the HRA makes no representations or war►•anties as to the conditions of the soils on the Property, its
fitness for construction of the Improvements or any other purpose for which the Developer may
make use of the Property, or regarding the presence of hazardous wastes, pollution or contamination
on the Property. The HRA will allow reasonable access to the Property for the Developer to
conduct such tests regarding soil conditions and hazardous wastes as the De��eloper may desire.
5
Permission to enter the Property to conduct such tests must be given in writing under the terms and
conditions established by the HRA.
Section 3.10 Survev. The HRA will allow reasonable access to the Property for the
Developer to conduct a survey. Permission to enter the Property to conduct such tests must be given
in writing under the terms and conditions established by the HRA.
Section 3.11 Trees. All healthy trees will be saved and protected by the Developer during
construction, to the extent possible, except those that specifically interfere with the construction of
the Improvernents. Trees requested to be retnoved must be identified by type on the site plan
provided by the Developer.
Section 3.12 Sale to Oualified Buver; Covenant on Use. The Developer agrees to convey
at least 51% of the units in the Improvements to Qualified Buyers and the deed of conveyance of the
Property shall contain a covenant detailing this requirement. The Developer must obtain the HRA's
prior approval of the terms and conditions of the purchase agreements with the Qualified Buyers and
provide proof of income for each Qualified Buyer. This Agreement constitutes a covenant on the
part of the Developer, its successors and assigns, to use the Property and Improvements for owner-
occupied, single-family residential purposes as per�nitted by the City.
5ection 3.13 Additional Affordable Housiug Assistance. Based on the Pro Forma
provided by the Developer set forth in Exhibit D, the Developer has a gap in its funding for the
Improvements of$64,000. The HRA has agreed to pay up to $64,000 to reimburse Developer for
the costs of construction of the affordable townhome units sold to Qualified Buyers from funds
available in the HRA's Housing and Redevelopment Fund. Following the completion of
construction of the Improvements, the Developer shall provide the HRA with the actual sources and
uses of funds for the completed Improvements. If, following completion of the Improvements, there
remains a gap in funding for the Improvements, the HRA will reimburse the developer for the costs
described in this section, in the maximum ainount of$64,000.
ARTICLE IV.
CONSTRUCTION OF IMPROVEMENTS
Section 4.1. Construction of Imqroveinents. The Developer shall construct the
Impro��ements on the Property at the Developer's cost in accordance with the Construction Plans
and the Building Plans, and shall maintain, preserve and keep the Lnprovements in good repair and
condition until sale of the Property to a Qualified Buyer.
Sectiou 4.2. Building Plans. The Developer agrees that the City of Richfield building
official may withhold issuance of a building perinit for the Improvements unless the Building Plans
are in confoi•inity with this Agreement, and all local, state and federal regulations. The HRA shall,
within 25 days of receipt of Building Plans submitted in application for a building permit, review
such Building Plans to determine whether the foregoing reyuirements have been met. If the HRA
determines such Building Plans to be deficient, it shall notify the Developer in writing stating the
6
deficiencies and the steps necessary for con•ection. Issuance of the building permit by the City with
the approval of the HRA shall be a conclusive determination that the Building Plans have been
approved and shall satisfy the provisions of this Sectiou 4.2.
Section 4.3 Schedule of Construction. Subject to Unavoidable Delays, construction of the
Improvements shall be completed prior to September 1, 2016. All construction shall be in
conformity with the approved Construction Plans and the Building Plans. Periodically during
construction the Developer shall inake reports in such detail as may reasonably be t•equested by the
HRA concerning the actual progress of construction. If at any time prior to completion of
construction the HRA has cause to believe that the Developer will be unable to complete
construction of the Lnprovements in the time permitted by this Section 4.3, it may notify the
Developer and demand assurances from the Developer regarding the Developer's consh-uction
schedule. If such assurances are not forthcoming or are deemed by the HRA at its sole discretion to
be inadequate, the HRA may declare an Event of Default aud may avail itself of any of the remedies
specified in Section 8.2 of this Agreement.
5ection 4.4 Certi�icate of Completion. After notification by the Developer of completion
of construction of the Improvements, the HRA shall inspect the construction to determine whether
the Improvements have been completed in accordance with the Construction Plans and the terms of
this Agreement, including the date of the completioti thereof. In the event that the HRA is satisfied
with the construction, the HRA shall furnish the Developer with a Certificate of Completion in the
forin attached hereto as Exhibit C. Such certification by the HRA shall be a conclusive
deterinination of satisfaction and terinination of the agreements and covenants in this Agreeinent
with respect to the obligation of the Developer to construct the Improvements.
The certification provided for in this Section 4.4 shall be in recordable form. If the HRA
shall refuse or fail to provide certification in accordance with the provisions of this Section 4.4, the
HRA shall within 15 days of such notification provide the Developer with a written statement,
indicating in adequate detail in what respects the Developer has failed to complete the
Improvements in accordance with the provisions of this Agreement necessary, in tlle opinion of the
HRA, for the Developer to take or perform in order to obtaiu such certification.
Section 4.5 Failure to Construct. In the event that construction of the Improvements is not
completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed to
have occurred and the HRA may proceed with its remedies under Section 8.2.
ARTICLE V.
INSURANCE
Section 5.1 Insurance. The Developer will provide and maintain or cause to be provided
and maintained at all times during the process of constructing the Improvements and, from time to
time at the request of the HRA, furnish the HRA with proof of payment of premiums on:
(a) Builder's risk insurance, written on the so-called"Builder's Risk -- Completed Value
Basis," in an amount ec�ual to 100% of the insurable value of the Iinprovements at the date of
7
coinpletion, and with coverage available in non-reporting forni on the so-called "all risk" forin of
policy;
(b) Comprehensive general liability insurauce (including operations, contingent liability,
operations of subcontractors, completed operations and contractual liability insurance) together with
an Owner's Contractor's Policy with limits against bodily injury and property damage of not less
than $1,000,000 for each occurrence (to accomplish the above-required limits, an umhrella excess
liability policy may be used); and
(c) Workers' compensation insurance,with statutory coverage.
The policies of iusurance required pursuant to clauses (a)and(b) above shall be in form and
content satisfactory to the HRA aud shall be placed with financially sound and reputable insurers
licensed to transact business in Minnesota. The policy of insurance delivered pursuant to clause (a)
above shall contain an agreement of the insurer to give not less than thirty(30) days advance notice
to the HRA in the event of cancellation of such policy or change affecting the cover•age thereunder.
ARTICLE VI.
FINANCING
Section 6.1 Financing. Within 20 days of the date of execution of this Agreement, the
Developer shall submit to the HRA evidence of financing for the Improvements in compliance with
the provisions of Section 2.1(b) of this Agreement. If the HRA finds that the financiug is adequate
in amount to provide for the construction of the Improvements, the HRA shall notify the Developer
of its approval.
If the HRA rejects the evidence of financing as inadequate, the Developer shall have 30 days
or such additional period of time as the Developer ma}� reasonably r•equire from the date of such
notification to submit evidence of financing satisfactory to the HRA. If the Developer fails to
submit such evidence or fails to use due diligence in pursuing financing, the HRA inay terminate
this Agreement and both parties shall be released from any further obligation or liability hereunder,
except for the HRA's remedies pursuant to Section 4.5 of this Agreement. Closing shall not take
place until the Developer has provided the HRA with acceptable evidence of financing for
construction of the Improvements.
Section 6.2 Limitation Unon Encumbrance of Property. Prior to the issuance of the
Certificate of Completion, ueither the Developer nor any successor in interest to the Properry or any
part thereof shall engage in any financing or any other transaction creating any Mortgage or other
encumbrance or lien upov the Property, whether by express agreement or operation of law, or•suffer
any encumbrance of lien to be made on or attached to the Property other than the liens or
encumbrances attached for the puiposes of obtaining funds to the extent necessary for inaking the
Irnprovements without the prior written approval of the HRA. The HRA shall not approve any
Mortgage which does not contain terms which conform to the terms of this Article VI and Section
8.2 of this Agreement.
8
Section 6.3 Subordination. In order to facilitate obtaining financing for the construction of
the Improvements by the Developer, the HRA may, in its sole and exclusive discretion, agree to
modify this Agreement in the manner and to the extent it deems reasonable, upon request by the
financial institution and the Developer.
ARTICLE VII.
PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER
Section 7.1 Representation as to Redevelopment. The Developei• represents and agrees
that its undertakings pursuant to the Agreeinent, are for the putpose of development of the Property
and not for speculation in land holding. The Developer further recognizes that, in view of the
importance of the Development to the general welfare of Richfield and the substantial financing and
other public aids that have been made available by the HRA for the purpose of making the
Development possible, the qualification and identity of the Developer are of particular concern to
the HRA. The Developer further recognizes that it is because of such qualifications and identity that
the HRA is entering into this Agreement, and, in so doing, is further willing to rely on the
representations and undertakings of the Developei• for the faithful performance of all undertakings
and covenants agreed by the Developer to be perforined.
Section 7.2 Prohibition Agaiust Transfer of Pronertv and Assi�mnent of Agreement.
For the reasons set out in Section 7.1 of this Agreement, the Developer represents and agrees that
prior to the issuance of the Certificate of Completion by the HRA:
(a) Except ouly by way of security for, and only for the purpose of obtaiuing financing
necessary to enable the Developer or any successor in interest to the Property, or any part thereof, to
perform its obligations with respect to the Development under this Agreement, and any other
puipose authorized by this Agreement, the Developer, except as so authorized, has not rnade or
created, and that it will not make or create, oi• suffer to be made or created, any total or partial sale,
assignment, conveyance, or auy trust in respect to this Agreement or the Property or any part thereof
or any interest therein, or any contract or agreement to do any of the same, without the prior written
approval of the HRA; and
(b) The HRA shall be entitled to require, except as otherwise provided in this
Agreement, as conditions to any such approval under this Section 7.2 that:
(i) Any proposed transferee shall have the qualifications and finaucial t•esponsibility, as
determined by the HRA, necessary and adequate to fulfill the obligations undertaken in this
Agreement by the Developer oi�, in the event the transfer is of or relates to part of the
Property, such obligations to the extent that they relate to such part,
(ii) any proposed transferee, by instruinent in writiug satisfactory to the HRA and in form
recordable ainong the land records, shall for itself and its successor and assigns, aiid
specifically for the benefit of the HRA, have expressly assumed all of the obligations of the
Developer under this Agreement and agreed to be subject to such obligations, restrictions
and conditions or, in the event the transfer is of, or relates to part of the Property, such
9
obligations, conditions, and restrictions to the extent that they relate to such part; provided,
that the effect that any transferee of, or any other successor in interest whatsoever to, the
Property or any part thereof, shall, for whatever reason, not have assumed such obligations
oi• agree to do so, shall not, unless and only to the extent otherwise specifically provided in
the Agreement or agreed to in writing by the HRA, relieve or except such transferee or
successor from such obligations, conditions, or restrictions, ot� deprive or limit the HRA of
or with respect to any t7ghts or remedies or controls with respect to the Property of the
construction of the Improvements; it being the intent of this Section 7.2, together with other
provisions of this Agreement, that to the fullest extent permitted by law and equity and
excepting only in the manner and to the extent speci�cally provided otherwise in the
Agreement no transfer of, or change with respect to, ownership in the Property or any part
thereof, or any interest therein, however consummated or occurring, whether voluntary or
involuntary, shall operate, legally or practically, to deprive or limit the HRA, or any rights or
remedies or controls provided in or resulting fi•om this Agreement with respect to the
Property and the construction of the Improvements that the HRA would have had, had there
been no such transfer oi•change, and
(iii) There shall be submitted to the HRA for• review all instruments and other legal
documents involved in effecting transfers described herein, and if approved by the HRA, its
approval shall be indicated to the Developer in writing.
In the absence of specific written agreement by the HRA to the contrary, no such transfer or
approval by the HRA thereof shall be deemed to relie��e the Developer from any of its obligations
with respect thereto. The sale of the Development to a Qualified Buyer shall not be deemed to be a
transfer within the meaning of this Section 7.2.
5ection 7.3 Apurovals. Any approval required to be given by the HRA under this Article
VII may be denied only in the event that the HRA reasonably determines that the ability of the
Developer to perform its obligations under this Agreement will be materially impaired by the action
for which approval is sought.
ARTICLE VIII.
EVENTS OF DEFAULT
Section 8.1 E��ents of Default Defined. The following shall be deemed Events of Default
under this Agreement and the term shall mean, whenever it is used in this Agreement, unless the
context otherwise provides, any one or more of the following events:
(a) Failure by the Developer to pay when due the payments required to be paid or secured
wider any provision of this Agreement;
(b) Subject to Section 9.7, failure by the Developer to complete the I�iiprovements by
September 1, 2016, absent any Unavoidable Delay;
10
(c) Failure by the Developer to observe and substantially perform any covenant, condition,
obligation or agreement on its part to be observed or performed hereunder, including the time for
such performance;
(d) Failure by the Developer to sell at least 51%of the townhome units to Qualified Buyers.
(e) If the Developer shall admit in writing its inability to pay its debts generally as they
become due, or shall file a petition in bankruptcy, or shall make an assignment for the benefit of its
creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial
part of the Property;
(� If the Developer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt,
or a court of competent jurisdiction shall enter an order or decree appointing, without the consent of
the Developer, a receiver of the Developer or of the whole or substantially all of its property, or
approve a petition filed against the Developer seeking reorganization or arrangement of the
Developer under the federal banlcruptcy laws, and such adjudication, order or decree shall not be
vacated or set aside or stayed within 60 days from the date of entry thereof; or
(g) If the Development is in default under any Mortgage and has not entered into a work-out
agreement with the Holder of the Mortgage.
Section 8.2 Remedies on Default. Whenever any Event of Default occurs, the HRA may,
in addition to any other remedies or rights given the HRA under this Agreement, take any one or
more of the following actions following written notice by the HRA to the Developer as provided in
Section 9.4 of this Agreement:
(a) suspend its performance under this Agreement until it receives assurances fi•om the
Developer, deemed reasonably adequate by the HRA, that the Developer will cure its default and
continue its performance under this Agreement;
(b) cancel or rescind this Agreement;
(c) withhold the Certificate of Completion; or
(d) take whatever action at law or in equity may appear necessaiy or desirable to the HRA to
collect any payments due under this Agreement, or to enforce performance and observance of any
obligation, agreement, or covenant of the Developer under this Agreement; provided, however, that
any exercise by the HRA of its rights or remedies hereunder shall always be subject to and limited
by, and shall not defeat, render invalid or limit in any way (a) the lien of any Mor�tgage authorized
by this Agreement and (b) any rights or interest provided iu this Agreement for the protection of the
Holders of a Mortgage; and provided further that should auy Holder succeed by foreclosure of the
Mortgage or deed in lieu thereof to the Developer's interest iu the Property, it shall, notwithstanding
the foregoing, be obligated to perform the following obligations of the Developer only to the extent
that the same have not therefore been performed by the Developer: Sections 3.3 through 3.7;
Sections 4.1 through 4.5; 5ections 5.1. Said Holder, upon foreclosure or taki�ig of a deed in lieu,
11
shall have no obligations pursuant to this Agreement other than as specifically set forth in the
foregoing sentence.
Section 8.3 No Remedv Exclusive. No remedy herein conferred upon or reserved to the
HRA is intended to be exclusive of any other available remedy or remedies, but each and every such
remedy shall be cumulative and shall be in addition to every other remedy given under this
Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to
exercise any right or powei•accruing upon any default shall impair any such right or power or shall
be construed to be a waiver thereof, but any such right and power may be exercised fi•om time to
tiine and as often as may be deemed expedient. In order to entitle the HRA or the Developer to
exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as
may be required in this Article VIII.
Section 8.4 No Additional VVaiver Imnlied bv One Waiver In the event of the
occurrence of any Eveut of Default by either party, which Event of Default is thereafter waived by
the other party, such waiver shall be limited to the particular Event of Default so waived and shall
not be deemed to waive any other concurrent,previous or subsequent Event of Default.
ARTICLE IX.
ADDITIONAL PROVISIONS
Section 9.1 Conflict of Interests; Representatives Not Individually Liable. No HRA
officer who is authorized to take part in any manner in making this Agreement in his or her official
capacity shall voluntarily ha��e a personal financial interest in this Agreement or benefit financially
there from. No member, official, or employee of the HRA shall be personally liable to the
Developer, or any successor in interest, for any Event of Default by the HRA or for any amount
which may become due to the Developer or successor or on any obligations under the terms of this
Agreement.
Section 9.2 Non-Discrimivation. The provisions of Minnesota Statutes Section 181.59,
which relate to civil rights and non-discrimination, and any affirmative action program of the City
shall be considered a part of this Agreement and binding on the Developer as though fiilly set forth
herein.
Section 9.3 Notice of Status and Conformance. At such tiine as all of the provisions of
this Agreement have been fully performed by the Developei•, the HRA, upon not less than ten days
prior written notice by the Developer, agrees to execute, acknowledge and deliver, without charge to
the Developer or to any person designated by the Developer, a statement iu writing in recordable
forin certifying the extent to which this Agreement has been performed and the obligations
hereunder satisfied.
Section 9.4 Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other coinmunication under this Agreement by either party to the
other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt
requested or delivered personally:
12
(a) As to the HRA:
Richfield HRA
Executive Director
6700 Portland Avenue South
Richfield, MN 55423
(b) As to the Developer:
Carolyn Olson/Eden Spencer
Greater Metropolitan Housing Corporation
15 South 5`h Street, Suite 701
Minneapolis,MN 55402
or at such other address with respect to either such party as that party may, from time to time,
designate in writing and forward to the other as provided in this Section 9.4.
Section 9.5 Provisions Not Mer�ed With Deed. None of the provisions of this Agreement
is intended to or shall be merged by reason of any deed transfe��t•ing any interest in the Property and
any such deed shall not be deemed to affect or impair the provisions and covenants of this
Agreement.
Section 9.6. Counterparts. This Agreement ma�� be simultaneously executed in any
number of counte�parts, all of which shall constitute one and the same instrument.
Section 9.7. Extensions. Any extension to the Closing Date and/or extension of the
completion date of the Improvements set forth in Section 4.3 that exceeds 6 months from the date agreed
to in Section 3.4 and 4.3,respectively, must be approved by the HRA Board. HRA staff is authorized to
extend the Closing Date to a date less than 6 months frorn the Closing Date agreed to in Section 3.4 and
extend the completion date of the Improvements to a date ]ess than 6 months from the completion date
set foith in Section 4.3.
13
IN VVITNESS �'VHEREOF, the HRA has caused this Agreement to be duly executed in its
name and behalf and its seal to be hereunto duly affixed and the Developer has caused this
Agreement to be duly executed as of the day and year first above written.
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD,MINNESOTA
By
Its Chaii�erson
By
Its Executive Director
STATE OF MINNESOTA )
) SS
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 2015,by , the Chauperson of the Housing and
Redevelopinent Authority in and for the City of Richfield,Minnesota(HRA), a public body
corporate and politic under the laws of Minnesota, on behalf of the HRA.
Notary Public
STATE OF MINNESOTA )
) SS
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 2015, by , the Executive Director of the Housing and
Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under
the laws of Minnesota, on behalf of the public body corporate and politic.
Notaiy Public
THE GREATER METROPOLITAN HOUSING CORPORATION
By:
Its:
STATE OF MINNESOTA )
) SS
COUNTY OF )
The foregoing instrument was acknowledged before ine this day of
, 2015, by , the
of The Greater Metropolitan Housing Corporation, a corporation under
the laws of Minnesota, on behalf of the corporation.
Notary Public
EXHIBIT A
LIST OF CONSTRUCTION PLAN DOCUMENTS
• Concept Plans
� Site Plan
A-1
EXHIBIT B
FORM OF QUIT CLAIM DEED
Quit Claim Deed
Deed Tax Due: $
ECRV:
Date:
FOR VALUABLE CONSIDERATION, Housing and Redevelopment Authority in and far the City
of Richfield, a public body corporate and politic under the laws of the State of Minnesota, Grantor,
hereby conveys and quit claims to Greater Metropolitan Housing Corporation, a non-profit
corporation under the laws of the State of Minnesota, Grantee, real property in Hennepin County,
Minnesota, descr•ibed as follows:
That part of the East 3/a of the Southeast Quarter of the Southeast Quarter(SE '/ of SE '/a) of
Section Thirty-two (32), Township Twenty-eight(28), Range Twenty-four(24), described as
commencing at the northwest corner of said East 3/a of the SE '/a of the SE '/a; thence East
along the North line of said SE '/a of the 5E '/a 170 feet; thence South parallel with the West
line of said East 3/a of SE '/a of the SE '/a 258 feet; thence West parallel with the North line of
said SE '/a of the SE �/a 170 feet to the West line of said East 3/a of the SE 1/a of the SE i/a;
thence North along said West line of East 3/a of the SE '/a of the SE �/a to the point of
beginning, according to the United States Government Suivey thereof and situate in
Hennepin County, Minnesota.
This deed is subject to the terms and provisions of that certain Contract for Development between
Grantor and Grantee, dated , 20_ (the "Contract"), recorded ,
20_,in the office of the Hennepin County Recorder as Document No.
together with all hereditaments and appurtenances.
Check here if pa►t or all of the land is Registered(Torrens) O
This deed is subject to a restriction that the Grantee inust sell at least 51% of the townhome units
constructed on the property to individuals or families witli income that does not exceed 80% of the
Twin Cities median income and who are purchasing the townhome unit for their own occupancy
(Qualified Buyers).
B-1
Pursuant to Section 3.12 of the Contract, the Grantee must obtain the Grantor's prior approval of the
terms and conditions of the purchase agreements with the Qualified Buyers aud provide proof of
income for each Qualified Buyer prior to a sale of a townhome unit.
Upon the sale of at least 51% of the townhome units on the Property to Qualified Buyers, the
Grantor will supply the Grantee, or the buyers of such units, with a document in suitable form
releasing and forever dischat•ging the restrictions contained herein. The Grantor shall have no
responsibility to record or pay the cost of recor•ding for the release.
❑ The Seller certifies that the Seller Housing and Redevelopment Authority in and
does not know of any wells on the for the City of Richfield
described real property.
❑ A well disclosure certificate By
accompanies this document or has Its Chairperson
been electronically filed. (If
� electronically filed, insert WDC By
number: )• Its Executive Director
❑ I am familiar with the property
described in this instrument and I
certify that the status and number of
wells on the described real property
have not changed since the last
previously filed well disclosure
certificate.
B-2
5TATE OF MINNESOTA
} ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before ine this day of , 20_, by Suzanne
Sandahl, the Chairperson of the Housing and Redevelopmeut Authority in and for the City of
Richfield, a public body corporate and politic under the laws of Mimiesota, on behalf of the
corporation, Grantor.
NOTARY STAMP SIGNATURE OF PERSON TAKING ACKNOWLGDGME�'T
STATE OF MINNESOTA
} ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this day of , 20_, by
Steven L. Devich, the Executive Director, of Housing and Redevelopment Authority in and for the
City of Richfield, a public body corporate and politic under the laws of the State of Mimiesota, on
behalf of the corporation, Gi•antoi•.
NOTARY STAMP SIGNATIJRE OF PERSON TAK[NG ACKNOWI,EDGMENT
This instrument was drafted by: Tax Statements should be sent to:
Kennedy&Graven, Charted Greater Metropolitan Housing Corporation
470 U.S. Bank Plaza 15 South 5`h Street, Suite 70l
200 South Sixth Street Minneapolis, MN 55402
Minneapolis, MN 55402
(612) 337-93U0
B-3
EXHIBIT C
FORM OF CERTIFICATE OF COMPLETION
The undersigned hereby certifies that , has fully and
completely coinplied with its obligations under Article IV of that document entitled "Contract for
Development", between the Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota and dated , filed
as Document No. with respect to the
construction of the approved construction plans at , legally described
as and is released and forever discharged from its obligations to
construct under such above-referenced Article.
DATED:
THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND
FOR THE CITY RICHFIELD
By
Its Chaiiperson
By
Its Executive Director
STATE OF MINNESOTA )
)SS
COUNTY OF HENNEPIN )
The foregoing instruinent was acknowledged before me this day of ,
20_, by the Chaiiperson of the Housing and
Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under
the laws of the State of Minnesota on behalf of the public body corporate and politic.
Notary Public
STATE OF MINNESOTA )
) SS
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 20_, by Steveu L. Devich, the Executive Director of the Housing and
Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under
the laws of Minnesota, on behalf of the public body coi•porate and politic.
C-1
Notary Public
This instrument was drafted by:
Richfield Housing and Redevelopment Authority
6700 Portland Ave S
Richfield, MN 55423
G2
EXHIBIT D
PRO FORMA FOR AFFORDABLE HOUSING PROJECT
C-l
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AGENDA ITEM#: 7
TcEPORT#: �
STAFF REPORT
�r � ''� HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
JANUARY 2O, 2015
REPORT PREPARED BY: ��N BARTON, COMMUNITY
DEVELOPMENT ASSISTANT DIRECTOR
NAME,TITLE
REPORT PRESENTER: ��N BARTON, COMMUNITY
DEVELOPMENT ASSISTANT DIRECTOR
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ITEM FOR HRA CONSIDERATION:
Consideration of adoption of an Affordable Housing Policy to assist in guiding future
subsidized housin develo ment in the Cit of Richfield.
I. RECOMMENDED ACTION:
By Motion: Adopt the Affordable Housing Policy to assist in guiding
future subsidized housing develo ment in the Cit of Richfield.
II. EXECUTIVE SUMMARY
In February 2013 the Richfield Housing and Redevelopment Authority (HRA)
appointed fifteen people to a Housing Visioning Task Force to work with a
consultant from Stantec to create a Housing Vision for the City of Richfield.
Following the work of the taskforce in 2013, a subset of the original Housing
Visioning Task Force volunteered to continue meeting to develop a comprehensive
housing policy for the HRA and City Council to assist in guiding future housing
development in the City of Richfield.
The Task Force divided the development of the policy up into several segments
serving different populations and addressing different housing needs. Those
segments consist of Senior Housing, Affordable Housing, and Market-rate Housing.
012015 Affordable Housing Policy.doc
Recommendations regarding Senior Housing were presented to the HRA in April of
2014.
The Task Force met during the second half of 2014 to discuss aspects of affordable
housing development in city-subsidized projects. As a result of these meetings, the
Task Force has formulated the following recommended Affordable Housing Policy
Statement to be used by the HRA when evaluating future subsidized housing
development proposals:
AFFORDABLE HOUSING POLICY STATEMENT
When considering proposals for housing-related redevelopment that include an
affordable component, the Housing and Redevelopment Authority and City shall
give priority to projects that address one or more of the following criteria:
• Are located in proximity to public transportation, job centers, schools and
other amenities.
• Are dispersed evenly throughout the City, with priority given to proposals that
introduce affordable new construction in areas where it is lacking.
• Provide 2 and 3-bedroom units (or larger) to meet the needs of the
community.
• Contain a mix of market-rate and affordable units, with a higher proportion of
market-rate units, unless dictated by an outside funding source.
• Maintain affordability through the rehabilitation of existing, aging multi-family
housing.
• Include attributes, such as,:
➢ Single-levelliving
➢ Low-rise developments (3 levels or less)
➢ Townhome/Row-home style housing
➢ Shared community spaces
➢ Accessibility
➢ Energy-efficient building systems
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• In February 2013 the HRA appointed fifteen people to a Housing
Visioning Task Force to work with a consultant from Stantec to create
a Housing Vision for the City of Richfield. The Housing Visioning Task
Force met for a period of several months and subsequently presented
a Housing Vision to the HRA and City Council for acceptance in June
of 2013.
• Seven members of the original Housing Visioning Task Force
volunteered to continue meeting to develop a housing policy for the
HRA and City Council to assist in guiding future housing development
in the City of Richfield.
• The Housing Visioning Task Force met five times during 2014 to
discuss various topics regarding housing and formulate policies
relating to certain housing segments, including senior housing and
affordable housing.
• In the latter part of 2014, the Task Force developed a list of
recommendations to be included in the formal Affordable Housing
Policy to be adopted by the HRA, as presented.
• In 2015, the Task Force will be discussing market-rate housing and
will be formulating a policy recommendation to be presented to the
HRA at a later date.
B. POLICY
• The HRA has expressed a desire to formulate a housing policy to help
guide future housing development in the City of Richfield.
• The 2008 City of Richfield Comprehensive Plan outlines the following
affordable housing related policies:
o Maintain and enhance Richfield's image as a community
with strong, desirable and livable neighborhoods.
o Ensure sufficient diversity in the housing stock to provide
for a range of household sizes, income levels and
needs.
o Encourage improvements to the housing stock to better
serve families and seniors.
o Maintain an appropriate mix of housing types in each
neighborhood based on available amenities,
transportation resources and adjacent land uses.
o Promote the development, management, and
maintenance of affordable housing in the City through
assistance programs; alternative funding sources; and
the creation of partnerships whose mission is to promote
low to moderate income housing.
G CRITICAL TIMING ISSUES
• N/A
D. FINANCIAL
• N/A
E. LEGAL
• N/A
IV. ALTERNATIVE RECOMMENDATION(S�
• Adopt the Affordable Housing Policy statement with revisions.
• Do not adopt the Affordable Housing Policy statement.
V. ATTACHMENTS
• Affordable Housing Policy Statement
• Housing Visioning Task Force Vision Statement
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• N/A
RICHFIELD HOUSING AND REDEVELOPMENT
AFFORDABLE HOUSING POLICY STATEMENT
January 20, 2014
= When considering proposals for housing-related redevelopment that
include an affordable component, the Housing and Redevelopment
Authority and City shall give priority to projects that address one or more
of the following criteria:
• Are located in proximity to public transportation, job centers,
schools and other amenities.
• Are dispersed evenly throughout the City, with priority given to
proposals that introduce affordable new construction in areas
where it is lacking.
• Provide 2 and 3-bedroom units (or larger) to meet the needs of the
community.
• Contain a mix of market-rate and affordable units, with a higher
proportion of market-rate units, unless dictated by an outside
funding source.
• Maintain affordability through the rehabilitation of existing, aging
multi-family housing.
• Include attributes, such as,:
➢ Single-levelliving
➢ Low-rise developments (3 levels or less)
➢ Townhome/Row-home style housing
➢ Shared community spaces
➢ Accessibility
➢ Energy-efficient building systems
Richfield Housin� Vision Statement
Richfield is a sustainable community that is known for its strong, vibrant and eclectic,
amenity-rich neighborhoods supported by a full range and balance of housing types that
match the choices of its diverse residents at every stage of their lives.
THE MEANING OF WORDS IN THE VISION STATEMENT
Richfield is—means that this is an aspirational statement. The Task Force members are describing the
housing and community they want for their future.
a sustainable community—"community"was a theme repeated by the Task Force members throughout
the process. Housing was acknow/edged to be very important, but housing was viewed as a means to
achieving a strong community. "Sustainab/e"is added to encompass environmental, economic and social
considerations.
that is known for its strong,vibrant and eclectic,amenity rich neighborhoods—like community,strong
neighborhoods were identified over and over again by the members throughout the process. The word
"vibrant"means that these neighborhoods are prospering economically and socially. "Eclectic"was used
to acknow/edge that Richfie/d can have varied and unique neighborhoods, each building on distinct
attributes and opportunities. "Amenity-rich"means environmenta/amenities like green space, trees,
trails and other natura/features, as well as community gathering places, coffee shops and similar
cultural offerings.
supported by a full range and balance of housing types—the concept of housing supporting the
neighborhoods is reinforced with these words."Full range"of housing types means that there is a wide
variety of housing options availab/e for peop/e to choose from when considering moving to or staying in
Richfie/d. A "ba/ance of housing types"means the avoidance of concentrations of any housing types.
that match the choices of its diverse residents at every stage of their lives.—"match the choices of
diverse residents"means that the City has what residents want, not just what they have to adapt to. The
Task Force supports a broad definition of diversity. These varied housing offerings mean that residents
can stay in the community their who/e lives and find housing that meets their needs and their
preferences.
June 2013