031615CompleteAgenda CITY OF RICHFIELD, MINNESOTA
MONDAY, MARCH 16. 2015
RICHFIELD MUNICIPAL CENTER
6700 PORTLAND AVENUE
REGULAR HOUSING AND REDEVELOPMENT AUTHORITY MEETING
COUNCIL CHAMBERS
7:00 P.M.
AGENDA
Call to order
1. Approval of the minutes of the (1) Special HRA Worksession of February 17, 2015 and
(2) Regular HRA Meeting of February 17, 2015
2. HRA approval of the agenda
3. Public hearing regarding a resolution authorizing the sale of 6637 5th Avenue to Endres
Custom Homes and a contract for private development with Endres Custom Homes for
the construction of a single family home under the Richfield Rediscovered Program
Staff Report No. 9
4. Consideration of a resolution authorizing the sale of 2517 West 76th Street to the
Greater Metropolitan Housing Corporation and approve a Contract for Development
with the Greater Metropolitan Housing Corporation for the development of five
townhomes
Staff Report No. 10
5. Consideration of a resolution authorizing an Interfund Loan for the advance of
property-acquisition costs in the Cedar Avenue Tax Increment Financing District
Staff Report No. 11
6. Considethation of a resolution authorizing the purchase of real property at 6333 and
6401 16 Avenue
Staff Report No. 12
7. HRA discussion items
8. Executive Director Report
9. Claims and Payroll
Adjournment
Auxiliary aids for individuals with disabilities are available upon request. Requests must
be made at least 96 hours in advance to the City Clerk at 612-861-9738.
HOUSING AND REDEVELOPMENT
AUTHORITY MEETING MINUTES
� , � � Richfield, Minnesota
�
Special Housing and Redevelopment
Authority Worksession
February 17, 2015
CALL TO ORDER
The meeting was called to order by Chair Supple at 6:18 p.m.
ROLL CALL
HRA Members Mary Supple, Chair; Pat Elliott; and Doris Rubenstein.
Present:
HRA Members David Gepner and Debbie Goettel.
Absent:
Staff Present: John Stark, Acting Executive Director; Karen Barton, Assistant Community
Development Director; and Theresa Schyma, Deputy City Clerk.
Item # I �6SCST EET (HRA MEMO NO 6)LOPMENT PROPOSALS FOR 2517 WEST
Assistant Communi�r Development Director Barton discussed the revisions to a development
proposal for 2517 West 76t Street. Revisions included reducing the number of units proposed for the
site, and increasing garage sizes to include two spaces for each unit.
Representatives from the Greater Metropolitan Housing Corporation (GMHC) worked with City
staff to make changes within the zoning requirements and to make sure the design fits well with
existing homes in the neighborhood.
Commissioner Elliott stated he was pleased with the new design making the garages less
prominent.
Chair Supple questioned the energy efficiency of the proposal.
Julia Spencer, representative from GHMC, stated that the building will be built above
standards but they don't always have the buildings certified as "energy efficient" due to the costs of
certification.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 6:43 p.m.
Date Approved: March 16, 2015
Special HRA Worksession Minutes -2- February 17, 2015
Mary B. Supple
Chair
Theresa Schyma John Stark
Deputy City Clerk Acting Executive Director
,�
HOUSING AND REDEVELOPMENT
� � AUTHORITY MEETING MINUTES
� ' Richfield, Minnesota
�
Regular Meeting
February 17, 2015
CALL TO ORDER
The meeting was called to order by Chair Supple at 7:00 p.m.
ATTENDANCE
HRA Members Mary Supple, Chair; Doris Rubenstein and Pat Elliott.
Present:
HRA Members David Gepner and Debbie Goettel,
Absent:
Staff Present: Deve op ent DirecEore and ThDelresa�Schyma, D puty CitySCierk. ommunity
Item #1 APROVAL OF THE MINUTES OF THE REGULAR HRA MEETING OF JANUARY
20, 2015
M/Elliott, S/Rubenstein to approve the minutes.
Motion carried 3-0.
Item #2 HRA APPROVAL OF AGENDA
M/Rubenstein, S/Elliott to approve the aqenda.
Motion carried 3-0.
Item #3 PUBLIC HEARING AND CONSIDERATION OF A RESOLUTION AUTHORIZING
THE SALE OF 7308-10TH AVENUE TO ENDRES CUSTOM HOMES AND A
CONTRACT FOR PRIVATE DEVELOPMENT WITH ENDRES CUSTOM HOMES
FOR THE CONSTRUCTION OF A SINGLE FAMILY HOME UNDER THE
RICHFIELD REDISCOVERED PROGRAM S.R. NO. 8
Assistant Community Development Director Barton presented Staff Report No. 8.
Dustin Endres, Endres Custom Homes, was available for questions.
Commissioner Rubenstein commented that she believes the house is very large and not
keeping with the design of the neighborhood.
_2_ February 17,2015
HRA Meeting
Commissioner E�liott liked the design and believes the house is proportional to the lot size.
Mr. Endres responded that the garage is setback 20 feet so they did not build to the
maximum.
Ruthann Clay, 7301 Tenth Avenue, stated she believes this 2-story design does not fit with
the feel of the neighborhood which is made up entirely of rambler homes.
Don Clay, 7301 Tenth Avenue, stated his concerns regarding a one 2-story house amongst
ramblers and that there is not adequate tree coverage for the proposed design.
Mr. Endres stated that they tried to design a rambler with another buyer but were unabte to
make it fit Richfield guidelines of a 3 bedroom home. He continued that this design is not a true 2-
story house since most of the square footage is located on the first floor.
Commissioner Elliott stated that he believes this is a good design for the neighborhood.
There are newer guidelines then when those homes on the block were originally built. When those
homes need to be upgraded these are the new guidelines.
The HRA consensus was to close the public hearing.
M/Rubenstein, S/Elliott that the followinq resolution be approved:
HRA RESOLUTION NO. 1196
RESO 7308 OTH A�NUE TO END ES �STOM HOMES,�INCLOCATED AT
Motion carried 3-0. This resolution appears as HRA Resolution No. 1196.
Item #4 HRA DISCUSSION ITEMS
None.
Item #5 EXECUTIVE DIRECTOR REPORT
None.
Item #6 CLAIMS AND PAYROLL
M/Rubenstein, S/Elliott that the followinq claims and pavrolls be approved:
U.S. BANK 02/17/15
Section 8 Checks: 126401-126492 166,721.23
HRA Checks: 32173-32203 $� 114,816.29
TOTAL 281,537.52
Motion carried 3-0.
ADJOURNMENT
The meeting was adjourned by unanimous consent at 7:20 p.m.
HRA Meeting -3- February 17,2015
Date Approved: March 16, 2015
Mary B. Supple
HRA Chair
Theresa Schyma John Stark
Deputy City Clerk Acting Executive Director
AGENDA ITEM#: 3
REPORT#: 9
STAFF REPORT
� � ' 'j HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
MARCx 16, 2015
REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON,HOUSING
SPECIALISTS
NAME,TITLE
REPORT PRESENTER: ��N BARTON, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
N,�rc Tirz,E
(
DEPARTMENT DIRECTOR REVIEW: �
SIGNA'
REVIEWED BY EXECUTIVE DIRECTOR:
ITEM FOR HRA CONSIDERATION:
Public hearing and consideration of a resolution authorizing the sale of 6637 5th Avenue to
Endres Custom Homes and a Contract for Private Development with Endres Custom Homes
for the construction of a sin le famil home under the Richfield Rediscovered Program.
I. RECOMMENDED ACTION:
Conduct and close the public hearing and by motion:
1. Approve a resolution authorizing the sale of 6637 5th Avenue to
Endres Custom Homes, Inc. and;
2. Authorize execution of a Contract for Private Development
between the Housing and Redevelopment Authority and Endres
Custom Homes, Inc. for the redevelopment of 6637 5th Avenue.
II. EXECUTIVE SUMMARY
Endres Custom Homes, Inc. (the Builder) is applying to purchase the Housing and
Redevelopment Authority (HRA) owned lot at 6637 5th Avenue to construct a new
single family home. The new home would be a two-story home with three
bedrooms, three bathrooms and an attached two-car garage. The new home will be
approximately 1,900 square feet with an end-value exceeding $340,000. The house
would be built speculatively as there is no buyer currently identified.
031615 RR Lot Sale 6637 5th Avenue.docx
The property currently shares a driveway with the property to the north. The
property has been marketed with the expectation that future development would
accommodate the shared driveway.
The Builder is proposing to cut the shared driveway off at the north property line as
part of the new construction. In so doing, this will leave the neighboring property to
the north with an approximately 10 foot wide driveway. Although the 10 foot width
meets minimum requirements, it is a significant reduction to the driveway width the
property owners have been accustom to having with the shared driveway.
Additionally, the existing driveway slopes downward from the garage and the steps
to the side entrance of the home encroach into the driveway.
In an effort to minimize the negative impact to the neighbors to the north, staff is
recommending the establishment of a driveway easement across the property to
allow convenient and safe access to the garage at 6633 5th Avenue. The
recommended easement would be three feet in width. It is anticipated that either
Endres Custom Homes will leave concrete in this easement area or that the
neighboring property will pave this area.
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• The HRA purchased 6637 5th Avenue in 2010 for $105,000, and the
existing home was abated and demolished in 2010.
• The property shares a driveway with 6633 5th Avenue, with
approximately 10 feet of driveway width located on each property.
• There is no formal agreement in place regarding the shared driveway.
• The driveway was left in place at the time the house and garage were
demolished to avoid negatively impacting the neighboring property.
• The property has been marketed with the expectation that future
development would accommodate the shared driveway.
• The Builder is proposing to eliminate the shared driveway and provide
two separate driveways.
• The owners of 6633 5th Avenue are amenable to eliminating the
shared driveway; however, they believe that the remaining 10-foot
wide driveway would not function well and would negatively impact
their property given the presence of steps and a downward slope out
of the garage. They have requested a four-foot easement across 6637
5th Avenue for driveway purposes.
• The Builder disagrees with this requirement and plans to ask the HRA
to approve a Contract for Development that allows him to remove the
driveway and rebuild the curb cut at the property line.
• Ten feet is the minimum width necessary to provide vehicle access to
the backyard. The neighbors, however, have had the reasonable use
of a nearly 20-foot wide driveway since purchasing the property in
1989.
• The HRA has the legal right to allow the removal of the driveway
located on its property; however, doing so would have a negative
impact on the function and value of 6633 5th Avenue.
• Given the need for additional driveway space to accommodate 6633
5th Avenue and to also allow adequate space to address drainage on
6637 5t" Avenue, staff supports providing a three-foot wide easement
in the area adjacent to the driveway.
B. PoLICY
• The proposed project meets the objectives of the Richfield
Rediscovered Program:
o Removes substandard, functionally obsolete housing and
eliminates its blighting influence.
o Provides new, higher valued housing.
o Alleviates shortage of housing choice for families.
• The project meets the Housing Design and Site Development Criteria,
as defined in the Richfield Rediscovered Guidelines.
C. C�TIC�,Trn��G IssuEs
• The Contract requires the Builder to close on the property by June 1,
2015 and to complete construction by November 1, 2015.
• A provision has been added to all Richfield Rediscovered contracts
authorizing staff the ability to grant an extension to these deadlines for
a period up to six months.
D. FINANCIAL
• The HRA acquired the 50-foot wide property and structure in 2010 for
$105,000.
• The appraised value of the property as a vacant lot is $48,000.
• Under the terms of the Contract, the $48,000 will be due at closing.
• The Builder proposes to build the house to achieve MnGreen Path
certification. If the certification is obtained, the Builder will qualify for a
$5,000 credit.
• Under the terms of the Contract, the minimum market value of the
house will be $340,000.
• Under the terms of the Contract, the Builder must submit a $10,000
cash escrow to be held until construction is completed as provided in
the Contract.
E. LEGaL
• The HRA Attorney has reviewed the terms of the Contract for Private
Redevelopment.
• Notice of the public hearing was published in the Sun Current on
March 5, 2015.
• Mailed notification is not required on this item; however, a courtesy
notice was mailed to residents within 350 feet of the property.
IV. ALTERNATIVE RECONIMENDATION(S�
• Do not execute the Contract for Private Development.
• Amend the Contract for Private Development removing the requirement for a
driveway easement.
V. ATTACHMENTS
• Resolution
• Contract for Private Development
• Elevations and floor plans of proposed home
• Site plan of proposed home
• Photo of 6637 5th Avenue
• Photo of shared driveway
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• Dustin Endres, Endres Custom Homes, Inc.
• Janet and Mary Lennander, owners of 6633 5t" Avenue
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT
6637 5TH AVENUE TO ENDRES CUSTOM HOMES, INC
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 Richfield Rediscovered Program adopted by the HRA, said real property
being described as:
Address: 6637 5th Avenue
Legal: Lot 15, Block 1, McCutchan's Portland Avenue Park, including adjacent '/2 of
alley vacated
WHEREAS, the HRA is authorized to sell real property within its area of operation
after a public hearing; and
WHEREAS, the purchaser of the described property has been identified as Endres
Custom Homes, Inc., and
WHEREAS, a Contract for Private Development has been prepared, and the sale
price of 6637 5th Avenue is $48,000 with performance security in the amount of$10,000;
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, Minnesota:
1. A public hearing has been held and 6637 5th Avenue is authorized to be sold for
$48,000.00 to Endres Custom Homes, Inc.; and
2. The Chairperson and Executive Director are authorized to execute a Contract for
Private Development and other agreements as required to effectuate the sale to
the Builder.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 16th day of March, 2015.
Mary B. Supple, Chair
ATTEST:
Doris Rubenstein, Secretary
CONTRACT FOR PRIVATE DEVELOPMENT
Between
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD
and
Endres Custom Homes, Inc
for property located at
6637 5th Avenue South
This Instrument Drafted by:
The Housing and Redevelopment Authority
in and for the City of Rich�eld
6700 Portland Avenue South
Richfield, Minnesota 55423
Telephone: (612) 861-9760
401253v8 CBR RC125-65
CONTRACT FOR PRIVATE DEVELOPMENT
THIS AGREEMENT, made and entered into as of this day of �
2015,by and between the Housing and Redeveloprr�ent Authority in and for the City of Richfield,
a public body corporate and politic under the laws of the State of Minnesota, having its principal
office at 6700 Portland Avenue, Richfield, Minnesota (HRA) and Endres Custom Homes, Inc.
(Builder).
WITNESSETH:
WHEREAS, the City of Richfield (City) and the HRA have previously created and
established a Redevelopment Project (Project) pursuant to the authority granted in Minnesota
Statutes, Sections 469.001 through 469.047 (collectively,the Act); and
WHEREAS, pursuant to the Act, the City and the HRA have previously adopted a
redevelopment plan for the Project(Redevelopment Plan); and
WHEREAS, in order to achieve the objectives of the Redevelopment Plan and �
particularly to make specified land in the Project available for development by private enterprise
for and in accordance with the Redevelopment Plan, the HRA has determined to provide
substantial aid and assistance to finance development costs in the Project; and
WHEREAS, the Builder has proposed a development as hereinafter defined within the
Project which the HRA has determined will promote and carry out the objectives for which the
Project has been undertaken, will assist in carrying out the obligations of the Redevelopment
Plan, will be in the vital best interests of the City and the health, safety and welfare of its
residents and is in accord with the public purposes and provisions of the applicable state and
local laws and requirements under which development in the Project has been undertaken and is
being assisted.
NOW, THEREFORE, in consideration of the mutual covenants and obligation of the
HRA and the Builder, each party does hereby represent, covenant and agree with the other as
follows:
ARTICLE I.
DEFINITIONS, EXHIBITS,RULES OF INTERPRETATION
Section 1.1. Definitions. In this Agreement, the following terms have the meaning
given below unless the context clearly requires otherwise:
Building Plans. Detailed plans for the Improvements to be constructed on the Property,
as required by the local building official for issuance of a building permit.
401253v8 CBR RC125-65
1
Construction Plans. The construction plans approved by the HRA pursuant to Section
4.1 of this Agreement. The Construction Plans include a schedule for construction of the
Improvements, preliminary plans and schematics of the Improvements to be constructed, and a
landscaping plan.
Development. The Property and the Improvements to be constructed thereon according
to the Construction Plans approved by the HRA.
Event of Default. Event of Default has the meaning given such term in Section 8.1.
Guidelines. The Richfield Rediscovered Program Guidelines Lot Sale Program, revised
Apri123, 2013 and attached as Exhibit B to this Agreement.
Homeowner. The individuals purchasing the Property from Builder and who will be
living in the home following purchase.
Imurovements. Each and all of the structures and site improvements constructed on the
Property by the Builder, as specified in the Construction Plans to be approved by the HRA.
Minimum Market Value. $340,000, which is the minimum market value for the land
and Improvements as confirmed by the Hennepin County Assessor.
Mort�age. A mortgage obtained by the Builder from a third party lender in accordance
with Section 7.2 of this Agreement.
Pro er . The real property legally described as:
Lot 15,Block 1, McCutchan's Portland Avenue Park,Hennepin County,Minnesota
Located on land having a street address o£
6637 Sth Avenue South
Unavoidable Delavs. Delays which are the direct result of strikes, labor troubles, fire or
other casualty to the Improvements, litigation commenced by third parEies 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 Builder.
Section 1.2. Exhibits. The following Exhibits are attached to and by reference made a
part of this Agreement:
A. Form of Certificate of Completion
B. Program Guidelines—Lot Sale Program
C. Form of Quit Claim Deed
401253v8 CBR RC125-65
2
D. Well Disclosure
Section 1.3. Rules of Interpretation.
(a) This Agreement shall be interpreted in accordance with and governed by the laws
of the State of Minnesota.
(b) The words "herein" and "hereofl' and words of similar import, without reference
to any particular section or subdivision refer to this Agreement as a whole rather than any
particular section or subdivision hereof.
(c) References herein to any particular section or subdivision hereof are to the section
or subdivision of this Agreement as originally executed.
(d) Any titles of the several parts, articles and sections of this Agreement are inserted
for convenience and reference only and shall be disregarded in construing or interpreting any of
its provisions.
ARTICLE II.
REPRESENTATIONS AND UNDERTAKINGS
Section 2.1. Bv the Builder. The Builder makes the following representations and
undertakings:
(a) The Builder has the legal authority and power to enter into this Agreement and has
duly authorized the execution, delivery and performance of this Agreement;
(b) The Builder has the necessary equity capital or has obtained commitments for
financing necessary for construction of the Improvements;
(c) The Builder will construct the Improvements in accordance with the terms of this
Agreement and all local, state and federal laws and regulations;
(d) The Builder will obtain, in a timely manner, all required permits, licenses and
approvals, and will meet, in a timely manner, the requirements of all local, state and federal laws
and regulations which must be obtained or met before the Improvements may be constructed;
(e) The plans for the Improvements have been prepared by a qualified draftsperson or
architect; and
(f j The Builder has read and understands the Guidelines and agrees to be bound by
them.
401253v8 CBR RC125-65
3
Section 2.2. Bv the HRA. The HRA makes the following representations as the basis
for the undertaking on its part herein contained:
(a) The HRA is authorized by law to enter into this Agreement and to carry out its
obligations hereunder; and
(b) The HRA will, in a timely manner, subject to all notification requirements, review
and act upon all submittals and applications of the Builder and will cooperate with the efforts of
the Builder to secure the granting of any permit, license, or other approval required to allow the
construction of the Improvements.
ARTICLE III.
ACQUISITION OF PROPERTY; CONVEYANCE TO BUILDER
Section 3.1. Purchase of Propertv bv Builder. The HRA agrees to sell the Property to
Builder and the Builder agrees to purchase the Property from the HRA in an "as-is" condition.
The sale of the Property is contingent upon the Builder providing the HRA with evidence
satisfactory to the HRA that Builder has entered into a binding legal commitment, in the form of
a Purchase Agreement for the resale of the Property to a Homeowner following completion of the
Improvements. The HRA agrees to convey the Property to the Builder by Quit Claim Deed in the
general form of Exhibit C. The HRA's deed to the Builder will contain the right of reverter
required in Section 8.3. The purchase price for the Property, payable at Closing, will be
$48,000.00 ("Purchase Price").
The Builder understands and agrees that prior to the HRA's conveyance of the Property to the
Builder, the HRA will convey an easement for driveway and access purposes to the owners of the
adjacent property located at 6633 St" Avenue South, which will be located on the north side of
the Property and will be approximately three feet wide.
Section 3.2. Title and Examination. As soon as reasonably possible after execution of
this Contract for Private Development by both parties,
(a) HRA shall surrender any abstract of title and a copy of any owner's title insurance
policy for the property, if in HRA's possession or control, to Builder or to Builder's designated
title service provider; and
(b) Builder shall obtain the title evidence determined necessary or desirable by
Builder or Builder's lender, including but not limited to title searches, title examinations,
abstracting, a title insurance commitment or an attorney's title opinion, at Builder's selection and
cost, and provide a copy to the HRA.
The Builder shall have 20 days from the date it receives such title evidence to raise any
objections to title it may have. Objections not made within such time will be deemed waived.
The HRA shall have 90 days from the date of such objection to effect a cure; provided, however,
401253v8 CBR RC125-65
4
that the HRA shall have no obligation to cure any objections, and may inform Builder of such.
The Builder 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. Taxes and Snecial Assessments. Real estate taxes and installments of
special assessments will be prorated between the HRA and Builder as of the date of closing.
Section 3.4. Soil Conditions and Hazardous Wastes. The Builder acknowledges that
the HRA makes no representations or warranties as to the conditions of the soils on the Property,
its fitness for the construction of improvements or any other purpose for which the Builder may
use the Property, or regarding the presence of hazardous wastes on the Property. The HRA will
allow reasonable access to the Property for the Builder to conduct such tests regarding soils
conditions and hazardous wastes as the Buyer may desire. Permission to enter the Property to
conduct such tests must be given in writing under reasonable terms and conditions established by
the HRA.
Section 3.5. Site Clearance. The HRA will be responsible for clearance of all buildings
as required to prepare the Property for development. All other site preparation is the
responsibility of Builder. Builder will comply with all of the provisions of the Guidelines
relating to tree protection,preservation and replacement.
Section 3.6. Other Preconditions to Closing. Closing may not take place until the
HRA is satisfied that the Project is in all respects in full compliance with the provisions of the
Guidelines contained in Exhibit B. It is anticipated that the Builder will involve the Homeowner
in the various activities required under the Guidelines so that the Homeowner will have an
opportunity to contribute suggestions concerning development of the Property.
Section 3.7. Closin . Closing must take place on or before June l, 2015, ("Closing
Date") or such other date as may be agreed to by the Builder and HRA in writing. At Closing,
the Builder will provide the HRA with a cash deposit for the escrow account established pursuant
to Section 5.1, in addition to the Purchase Price.
Section 3.8. Closin� Costs. The Builder will pay: (a)the closing fees charged by its title
insurance company or other closing agent, if any, utilized to close the transaction for
Builder; (b)title services chosen by Builder pursuant to Section 3.2 above,including the premium for
title insurance policy, if any,and(c)the recording fees for the Contract for Private Development and
the deed transferring title to the Builder. HRA will pay all other fees normally paid by sellers,
including (a) any transfer taxes, and (b) fees and charges related to the filing of any instrument
required to make title marketable. Each party shall pay its own attorney fees.
Section 3.9. Sewer and Water. HRA warrants that city water is available at the lot line
and city sewer is available at the curb.
401253v8 CBR RC125-65
5
Section 3.10. ISTS Disclosure. HRA is not aware of any individual sewage treatment
system on the property. Buyer is responsible for all costs of removing any individual sewage
treatment system that may be discovered on the Property.
Section 3.11. Well Disclosure. HRA's knowledge of wells on the Property is disclosed
in Exhibit D.
ARTICLE IV.
CONSTRUCTION OF IMPROVEMENTS
Section 4.1. Construction of Imurovements. The Builder shall construct the
Improvements on the Property in accordance with the Guidelines and the Construction Plans,
shall cause the Improvements to meet or exceed the Minimum Market Value specified in Section
1.1, and shall maintain, preserve and keep the Improvements in good repair and condition. The
Builder shall provide his or her proposed construction plans to the HRA for review; if the
proposed construction plans are in conformity with this Agreement and the Guidelines, the HRA
will approve the Construction Plans following review and comment by the Homeowner.
Improvements shall include the reconstruction of the curb cut currently shared with 6633 Stn
Avenue� South to specifications, as approved by the City Engineer. The existing driveway
currently shared with 6633 St" Avenue South will be cut to no less than three feet from the
property line. A permanent easement for the driveway will be recorded with Hennepin County.
Section 4.2. Construction Plans. No building permit will be issued by the City unless
the Building Plans are in conformity with the Guidelines, the Construction Plans, the Builder's
Minimum Market Value, other requirements contained in this Agreement, and all local, state and
federal regulations. The Builder shall provide the HRA with a set of Building Plans to be used in
connection with any application for a building permit. The HRA shall, within 25 days of receipt
of the Building Plans review the same to determine whether the foregoing requirements have
been met. If the HRA determines such Building Plans to be deficient, it shall notify the Builder
in writing stating the deficiencies and the steps necessary for correction. Issuance of the building
permit by the City shall be a conclusive determination that the Building Plans have been
approved and shall satisfy the provisions of this Section 4.2.
Section 4.3. Schedule of Construction. Subject to Unavoidable Delays, construction of
the Improvements shall be completed prior to November 1, 2015 ("Construction Completion
Date"). All construction shall be in conformity with the approved Construction Plans and the
Guidelines. Periodically during construction the Builder shall make reports in such detail as may
reasonably be requested by the HRA concerning the actual progress of construction. If at any
time prior to completion of construction the HRA has cause to believe that the Builder will be
unable to complete construction of the Improvements in the time permitted by this Section 4.3, it
may notify the Builder and demand assurances from the Builder regarding the Builder's
construction schedule. If such assurances are not forthcoming or are deemed by the HRA at its
401253v8 CBR RC125-65
6
sole discretion to be inadequate,the HRA may declare an Event of Default and may avail itself of
any of the remedies specified in Section 8.2 of this Agreement.
Section 4.4. Certificate of Completion. After notification by the Builder of completion
of construction of the Improvements, the HRA shall inspect the construction to determine
whether the Improvements have been completed in accordance with the Construction Plans and
the terms of this Agreement, including the date of the completion thereo£ In the event that the
HRA is satisfied with the construction, and upon closing on the sale of the Property to the
Homeowner, the HRA shall furnish the Builder with a Certificate of Completion in the form
attached hereto as Exhibit A. Such certification by the HRA shall be a conclusive determination
of satisfaction and termination of the agreements and covenants in this Agreement. Issuance of
the Certificate of Completion shall also serve as a satisfaction of any obligation of Builder
secured by the escrow account established under Section 5.1, and the cash in the escrow account
will be released to the Builder. At the time a Certificate of Completion is issued, the HRA will
also provide Builder with a $5,000 cash rebate if Builder has obtained Green Community
Concepts certification through LEED for Homes, Minnesota GreenStar, Minnesota Green
Communities or Minnesota Green Path.
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 Builder with a
written statement, indicating in adequate detail in what respects the Builder has failed to
complete the Improvements in accordance with the provisions of this Agreement necessary, in
the opinion of the HRA, for the Builder to take or perform in order to obtain such certification.
Section 4.5. Failure to Construct. In the event that construction of the Improvements is
not completed as provided in Section 4.3 of this Agreement, an Event of Default shall be deemed
to have occurred, and the HRA may proceed with its remedies under Section 8.2.
ARTICLE V.
REDEVELOPMENT ASSISTANCE
Section 5.1. Establishment of Cash Escrow. Builder acknowledges that although it is
purchasing the Property at its fair market value as raw land,the HRA has incurred significant
costs in acquiring and preparing the Property for development by Builder. At Closing, Builder
will deliver to the HRA $10,000 to be placed in a non-interest bearing escrow account pursuant
to the Escrow Agreement, dated as of the date hereof, between Builder and HRA. The obligation
to pay the $10,000 to the HRA will be forgiven, and the cash in the escrow account will be
returned to Builder i£ (i)the Builder receives a Certificate of Completion; and (ii)the Builder is
not otherwise in default of any of its obligations hereunder. If such have not occurred, an Event
of Default shall be deemed to have occurred and the HRA may exercise its remedies under
Section 8.2. In certain circumstances, after construction is complete,the Builder or Buyer may be
required to deposit another cash escrow with the planning department of the City for incomplete
improvements. In these cases, following the HRA's release of the cash escrow, the cash escrow
401253v8 CBR RC125-65
7
will be transferred to the City's planning department for such purpose. The terms of the escrow
will be set forth in an Escrow Agreement between the HRA and the Builder or Buyer.
ARTICLE VI.
FINANCING
Section 61. Financing. HRA acknowledges that Builder has submitted evidence of
financing for the Improvements in compliance with the provisions of Section 2.1(b) of this
Agreement. Builder must notify HRA immediately of any changes to or withdrawal of the
approved financing, HRA shall have 10 days to approve or disapprove changes in financing. If
the HRA rejects a change in the approved financing or if the approved financing is withdrawn,
the Builder shall have 30 days or such additional period of time as the Builder may reasonably
require from the date of the HRA's notification to submit evidence of financing satisfactory to
the HRA. If the Builder fails to submit such evidence or fails to use due diligence in pursuing
financing, the HRA may terminate this Agreement and both parties shall be released from any
further obligation or liability hereunder. Closing shall not take place until Builder has provided
HRA with acceptable evidence of financing for construction of the Improvements.
Section 6.2. Conv of Notice of Default to Lender. Whenever the HRA shall deliver
any notice or demand to the Builder with respect to any Event of Default by the Builder in its
obligations or covenants under this Agreement, the HRA shall at the same time forward a copy of
such notice or demand to each holder of any Mortgage authorized by the Agreement at the last
address of such holder shown in the records of the HRA.
Section 6.3. Subordination. In order to facilitate obtaining financing for the
construction of the Improvements by the Builder, the HRA may, in its sole and exclusive
discretion, agree to modify this Agreement in the manner and to the extent the HRA deems
reasonable, upon request by the financial institution and the Builder.
ARTICLE VII.
PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER
Section 7.1. Renresentation as to Redevelopment. The Builder represents and agrees
that its undertakings pursuant to the Agreement, are for the purpose of development of the
Property and not for speculation in land holding. The Builder 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 Builder are of particular
concern to the HRA. The Builder 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 Builder for the faithful performance of all
undertakings and covenants agreed by the Builder to be performed.
401253v8 CBR RC125-65
g
Section 7.2. Prohibition Against Transfer of Proqertv and Assignment of
Agreement. For the reasons set out in Section 7.1 of this Agreement, the Builder represents and
agrees as follows:
(a) Except as specifically allowed by this section, Builder has not made or created,
and, prior to the issuance of the Certificate of Completion, Builder will not make or create, or
suffer to be made or created, any total or partial sale, assignment, conveyance, or any trust in
respect to this Agreement or the Property or any part thereof or any interest therein, or any
contract or agreement to do any of the same, without the prior written approval of the HRA.
(b) This provision shall not be deemed as preventing the Builder from entering into a
Purchase Agreement for the sale of the Property to a Homeowner.
(c) This provision does not prohibit conveyances that are only by way of security for,
and only for the purpose of obtaining financing necessary to enable the Builder or any successor
in interest to the Property, or any part thereof, to perform its obligations with respect to the
Development under this Agreement, and any other purpose authorized by this Agreement. Any
Mortgage obtained by the Builder must be disclosed to the HRA, and must be subordinate to this
Agreement. The Builder must provide the HRA with an address for the holder of the Mortgage
for purposes of providing notices as may be required by this Agreement.
ARTICLE VIII.
EVENTS OF DEFAULT
Section 8.1. Events of Default Defined. The following shall be deemed Events of
Default under this Agreement and the term shall mean, whenever it is used in this Agreement,
unless the context otherwise provides, any one or more of the following events:
(a) Failure by the Builder to pay when due the payments required to be paid or
secured under any provision of this Agreement;
(b) Failure by the Builder 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;
(c) If the Builder 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;
(d) If the Builder, 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 Builder, a receiver of the Builder or of the whole or substantially all of its
property, or approve a petition filed against the Builder seeking reorganization or arrangement of
401253v8 CBR RC125-65
9
the Builder under the federal bankruptcy laws, and such adjudication, order or decree shall not be
vacated or set aside or stayed within 60 days from the date of entry thereof; or
(e) If the 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 Builder as
provided in Section 9.3 of this Agreement:
(a) Suspend its performance under this Agreement until it receives assurances from the
Builder, deemed reasonably adequate by the HRA, that the Builder will cure its default and
continue its performance under this Agreement;
(b) Cancel or rescind this Agreement;
(c) Exercise its right under Section 8.3;
(d) Withdraw all funds in the escrow account established in Section 5.1;
(e) Withhold the Certificate of Completion; or
(� Take whatever action at law or in equity may appear necessary or desirable to the
HRA to enforce performance and observance of any obligation, agreement, or covenant of the
Builder under this Agreement; provided, however, that any exercise by the HRA of its rights or
remedies hereunder shall always be subject to and limited by, and shall not defeat, render invalid
or limit in any way (a) the lien of any Mortgage authorized by this Agreement and (b) any rights
or interest provided in this Agreement for the protection of the holders of a Mortgage; and
provided further that should any holder of a Mortgage succeed by foreclosure of the Mortgage or
deed in lieu thereof to the Builder's interest in the Property, it shall, notwithstanding the
foregoing, be obligated to perform the obligations of the Builder under this Agreement to the
extent that the same have not therefore been performed by the Builder.
Section 8.3. Revesting Interest in HRA UUon Happening of Event of Default
Subsequent to Convevance of Propertv to Builder. In the event that subsequent to the closing
or the sale of the Property to the Builder and prior to the issuance of the Certificate of
Completion:
(a) The Builder fails to begin construction of the Improvements in conformity with
this Agreement, and such failure is not due to Unavoidable Delays;
(b) The Builder, after commencement of the construction of the Improvements,
defaults in or violates obligations with respect to the construction of the Improvements, including
401253v8 CBR RC125-65
10
the nature and the date for the completion thereof, or abandons or substantially suspends
construction work, and such act or actions is not due to Unavoidable Delays;
(c) The Builder or successor in interest fails to pay real estate taxes or assessments on
the Property or any part thereof when due, or places thereon any encumbrance or lien
unauthorized by this Agreement, or suffers any levy or attachment to be made, or any supplier's
or mechanic's lien, or any other unauthorized encumbrance or lien to attach;
(d) There is, in violation of Article VII of this Agreement, any transfer of the Property
or any part thereof; or
(e) The Builder fails to comply with any of its covenants under this Agreement,
then the HRA shall have the right upon 30 days' written notice to Builder and the Builder's
failure to cure within such 30 days period, to re-enter and take possession of the Property and to
terminate and revest in the HRA the interest of the Builder in the Property; provided, however,
that such revestiture of title shall be subject to the lien of any prior encumbrance permitted under
this Agreement, or any right of a Homeowner pursuant to a valid Purchase Agreement authorized
by this Agreement.
Section 8.4. No Remedv Exclusive. No remedy herein conferred upon or reserved to
the HRA is intended to be exclusive of any other available remedy or remedies, but each and
every such remedy shall be cumulative and shall be in addition to every other remedy given
under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or
omission to exercise any right or power accruing upon any default shall impair any such right or
power or shall be construed to be a waiver thereof, but any such right and power may be
exercised from time to time and as often as may be deemed expedient. In order to entitle the
HRA or the Builder 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 8.5. No Additional Waiver Implied bv One Waiver. In the event of the
occurrence of any Event of Default by either party, which Event of Default is thereafter waived
by the other party, such waiver shall be limited to the particular Event of Default so waived and
shall not be deemed to waive any other concurrent,previous or subsequent Event of Default.
401253v8 CBR RC125-65
11
ARTICLE IX.
ADDITIONAL PROVISIONS
Section 9.1. Conflict of Interests; Representatives Not Individuallv Liable. No HRA
officer who is authorized to take part in any manner in making this Agreement in his or her
official capacity shall voluntarily have a personal financial interest in this Agreement or benefit
financially there from. No member, official, or employee of the HRA shall be personally liable
to the Builder, or any successor in interest, for any Event of Default by the HRA or for any
amount which may become due to the Builder or successor or on any obligations under the terms
of this Agreement.
Section 9.2. Non-Discrimination. The provisions of Minnesota Statutes Section
181.59, which relate to civil rights and non-discrimination, and any affirmative action program of
the City shall be considered a part of this Agreement and binding on the Builder as though fully
set forth herein.
Section 9.3. Notices and Demands. Except as otherwise expressly provided in this
Agreement, a notice, demand or other communication under this Agreement by either party to the
other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt
requested or delivered personally:
(a) As to the HRA:
Richfield HRA
Executive Director
6700 Portland Avenue South
Richfield, MN 55423
(b) As to the Builder:
Dustin Endres
Endres Custom Homes
15561 Dunberry Way
Apple Valley, MN 55124
or at such other address witl� respect to either such party as that party may, from time to time,
designate in writing and forward to the other as provided in this Section 9.3.
Section 9.4. Counterparts. This Agreement may be simultaneously executed in any
number of counterparts, all of which shall constitute one and the same instrument.
Section 9.5. Extensions. Any extension to the Closing Date and/or extension to
Construction Completion Date that exceeds 6 months from the date agreed to in Section 3.7 and 43,
respectively, must be approved by the HRA Board. HRA staff is authorized to extend the Closing
Date to a date less than 6 months from the Closing Date agreed to in Section 3.7 and extend the
401253v8 CBR RC125-65 _
IZ
Construction Completion Date to a date less than 6 months from the Construction Completion Date
agreed to in Section 4.3.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
as of the day and year first above written.
[signature pages follow]
401253v8 CBR RC125-65
13
Signature Page for HRA
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD, MINNESOTA
By
Its Chairperson
By
Its Executive Director
STATE OF MINNESOTA )
) SS
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 20 , by , the Chairperson of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate
and politic under the laws of Minnesota, on behalf of the authority.
Notary Public
STATE OF MINNESOTA )
) SS
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 20 , by , the Executive Director of the Housing
and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body
corporate and politic under the laws of Minnesota, on behalf of the authority.
Notary Public
401253v8 CBR RC125-65
14
Signature Page for Builder
Builder `
By
Its
STATE OF MINNESOTA )
) SS
� COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 20 , by , the
of � a
under the laws of , on behalf of the
Notary Public
401253v8 CBR RC125-65
15
EXHIBIT A
FORM OF CERTIFICATE OF COMPLETION
The undersigned hereby certifies that , has fully and
completely complied with its obligations under that document entitled "Contract for Private
Development", between the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota and dated ' ,
filed as Document No. (the
"Contract") with respect to the construction of the approved construction plans at
, legally described as and is
released and forever discharged from its obligations under such Contract.
DATED:
THE HOUSING AND REDEVELOPMENT
AUTHORITY 1N AND FOR THE CITY
RICHFIELD
By:
Its: Executive Director
STATE OF MINNESOTA )
) SS
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
, 20_, 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 the State of Minnesota on behalf of the public body corporate and
politic.
Notary Public
This instrument was drafted by:
Kennedy& Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
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401253v8 CBR RC125-65
EXHIBIT B
PROGRAM GUIDELINES-LOT SALE PROGRAM
RICHFIELD REDISCOVERED
PROGRAM GUIDELINES
LOT SALE PROGRAM
REVISED: April 23, 2013
401253v8 CBR RC125-65
B-1
PROGRAMOBJECTIVES............................................................................................................................3
DEFINITIONS................................................................................................................................................3
PROGRAMBASICS .....................................................................................................................................3
APPLICATIONREQUIREMENTS................................................................................................................4
ADDITIONALREQUIREMENTS...................................................................................................................5
HOUSE DESIGN AND SITE DEVELOPMENT REQUIREMENTS...............................................................5
NewHouse Standards............................................................................................................................6
SiteStandards.........................................................................................................................................6
ConstructionRequirements...................................................................................................................6
GeneralStandards..................................................................................................................................7
GreenCommunity Concepts..................................................................................................................8
CITYREVIEW PROCEDURE.......................................................................................................................8
LOTSALE TO BUILDER/BUYER................................................................................................................9
PROGRAMMARKETING.............................................................................................................................9
DATAPRIVACY............................................................................................................................................9
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401253v8 CBR RC125-65
This document has been developed as a guidance tool for program administration. It should not be
interpreted as constituting any contractual agreement or liability by the City or Housing and
Redevelopment Authority(HRA). The HRA may modify or divert from the guidelines where it deems
appropriate.
I. Program Objectives
1. To remove substandard, functionally obsolete housing on scattered sites throughout the City
and replace with new, higher-valued housing.
2. To eliminate the blighting influence of substandard housing, thus improving residential
neighborhoods.
3. To alleviate the shortage of housing choices for families.
4. To facilitate the construction of larger three- to four-bedroom, owner-occupied homes
designed for families.
5. To facilitate the construction of multi-unit, owner-occupied homes designed to expand family
opportunities or to serve elderly residents.
These objectives will be achieved through the sale of lots by the Housing and Redevelopment Authority to
Builder/Buyer teams for the development of newly constructed homes.
II. De�nitions
Applicant: An individual who submits an application for a Richfield Rediscovered lot. The Applicant may
be a Builder or the end Buyer. If the Applicant is a Builder, an end Buyer should be identified. If the
Applicant is the Buyer, the Applicant must submit a signed contract between the Builder and the Buyer to
build a home on the lot identified in the application.
Buyer. An individual(s)who will build, own and occupy a new housing unit in Richfield.
The Buyer will occupy the property and not offer it for rent. The Buyer may not also function as the Builder
on a Richfield Rediscovered project. The Buyer and Builder must be unrelated separate legal entities. A
speculative project by a Buyer may be considered if all other program requirements can be met.
However, neither the Buyer, the Buyer's Builder or Builder's subcontractors, or the Builder's realty agents
may occupy or purchase the property.
Buyers, unless licensed in the trade specified, may not put any sweat equity into the construction of the
foundation, wall/roof framing, shingling, exterior work, electrical/plumbing/HVAC systems or interior
carpentry.
Builder. Contractor who has signed a contract with the Buyer to build a home on the lot identified in the
application.
Contract for Private Development: A contract between the HRA and the Builder or Buyer that establishes
the conditions under which the lot will be sold and the proposed house will be developed.
Green Community Concepts P/an: A written plan indicating how the proposed development will
incorporate green building features and concepts. Priority will be given to projects that incorporate green
building features.
HRA: Housing and Redevelopment Authority in and for the City of Richfield.
Lot List: A listing of available lots for sale. Information regarding the lot location, size and sale price is
provided.
III. Program Basics
1. HRA publishes a list of available vacant lots for purchase including sale price and
development criteria.
B-3
401253v8 CBR RC125-65
2. Builder/Buyer team proposes a plan for a lot consistent with development criteria and program
requirements and makes an offer to purchase.
3. NRA approves lot sale.
4. Lot is sold to Builder or Buyer.
5. Builder constructs new home.
6. Projects must be completed within one year of HRA approval of the project.
IV. Application Requirements
The following must be submitted for application to the program:
1. $525 application fee
An application fee must be paid at the time of application. This fee is non-refundable and
is not part of the lot price.
2. Application Form
3. Blueprints
The layout of all levels, including basement and unfinished space, must be provided.
4. Elevations
Elevations of all four sides of the house, including view of garage shall be provided.
Colored renderings may also be required.
5. Site plan
The site plan shall indicate the location of the new house, walkways and garage.
6. Landscaping plan
A landscaping plan must indicate the location and type of trees, shrubbery, flowers and
landscaping materials'(e.g. rocks, mulch)and any existing trees to be preserved.
7. Detail of construction materials to be used on the project.
8. Green Community Concepts Plan
The plan should indicate what Green Community Concepts will be incorporated into the
project.
9. Construction timeline
Construction must be completed with one year of the purchase of the property.
10. Signed contract with Builder
11. Purchase agreement
If the Builder plans to purchase the lot, the application must include a valid purchase
agreement between the Buyer and the Builder for the lot to be developed.
12. Financial capability statement
A statement from a financial institution indicating willingness to provide sufficient
construction capital to complete the project must be provided.
13. Builder References
a. Five previous customers
b. Three major suppliers, one being the construction supplier
c. Building inspectors from two cities where the Builder has constructed new housing
within the past three years
14. Proof of Builder's Comprehensive General Liability with Property Damage Protection.
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401253v8 CBR RC125-65
15. Proof of sufficient worker's compensation insurance coverage by the Builder.
16. Written warranty program
To be provided to the Buyer, which guarantees at a minimum, warranted repairs as
required by Minnesota State Statute.
V. Additional Program Requirements
1. The Applicant is expected to meet with an architectural/design consultant prior to submitting an
application. A finro-hour consultation is available through the HRA at a cost of$25 to the applicant.
See the City's website (www.cityofrichfield.orq) for more information. This requirement may be
waived if the applicant is using an architect for the project.
2. The site will be sold to the Builder or Buyer at the fair market value as appears on the Lot List.
The HRA will not accept offers for less than the established sale price.
3. A Contract for Private Development is signed by the HRA and the Builder or the Buyer. The
Contract is a standard form which includes conditions for acquisition and development of the
� property. The Contract will also establish a minimum required end-value for the property based
on construction estimates provided by the applicant. The Builder or Buyer will be expected to
agree to the terms of the Contract before the application can be scheduled on the HRA agenda.
4. All lots will have a required minimum end value that will be established in the Contract for Private
Redevelopment.
5. The lot can be sold to either the Builder or the Buyer. If the lot is sold to the Builder, the Builder
will pay cash for the lot at closing and submit a Letter of Credit or cash escrow for$10,000. The
Letter of Credit must be from a financial institution incorporated in the Twin Cities metropolitan
area. The cash escrow will be held in a non-interest bearing account. The Letter of Credit or
cash escrow will be released once the construction and landscape work are completed and a final
Certificate of Occupancy is issued.
6. If the lot is sold to the Builder and the Builder fails to complete construction as approved by the
HRA, the Letter of Credit or cash escrow may be drawn upon by the HRA. In addition, the
Contract for Private Development will contain a reverter provision, which will enable the HRA to
reclaim ownership of the property in the event of a default in the Contract. In the event that the
Builder fails to complete construction, the HRA may exercise its rights under the reverter
provision, as well as draw upon the Letter of Credit or cash escrow.
7. If the lot is sold to the Buyer, the Buyer will pay cash for the lot at closing and a $10,000 mortgage
in favor of the HRA will be filed on the property. The mortgage will be in first position. The HRA
may consider subordinating its interest in appropriate cases.
8. If the lot is sold to the Buyer and the Buyer fails to complete construction as approved by the HRA,
the HRA may exercise its rights provided in the mortgage.
VI. House Design and Site Development Requirements
The development of all sites shall meet the development criteria listed below, as reviewed and approved
by the HRA. To maximize the development of a given lot, the HRA reserves the right to explore all
development options without obligating the HRA to support any specific proposal, idea or solicitation.
Housing design is a critical element of the program. Siding materials, exterior fa�ade presentation, roof,
window, siding and building line variability, finished landscape, interior space function and use are all
important issues of design to the HRA. The design requirements were created to ensure that the homes
built on the HRA-sold lots blend in with the surrounding neighborhood and respond to the specific
concems of the HRA.
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401253v8 CBR RC125-65
All new houses built under the Richfield Rediscovered Program must meet the requirements of the City's
Zoning Code and additional criteria, as listed in this document.
A. New House Standards
1. New dwelling must be owner-occupied.
2. Three finished bedrooms are.required.
3. Two finished bathrooms are required.
4. Two-car garage is required.
5. A full basement is required, unless the selected design results in a split-level or a garden-level
type of basement. In the case of an "accessible" house, a basement may be omitted if it would
otherwise prohibit accessible design elements.
B. Site Standards
1. After construction, the site must be fully landscaped, including plantings around the foundation.
The entire grounds shall be landscaped and be aesthetically pleasing in all seasons. Land forms
and plant materials shall be used to define the site and blend neatly with adjoining properties.
Specific lot line blending requirements may be required, as appropriate, for specific sites.
At a minimum, the applicant must meet the "Landscaping and Screening Requirements" in the
City's Zoning Code under Section 544.03, Subd. 4, General landscapinq requirements and Subd.
5, Residential sites. The code is available on the City's website: http://www.ci.richfield.mn.us
To the greatest extent possible, existing trees should be preserved. Any trees removed must be
replaced (they do not have to be the same species or in the same location) and should be
labeled on the required landscape plan.
2. Utility meters shall be screened from street view and locations must be specified on plans.
3. Site drainage should be accommodated on the site so that water is directed away from the new
home and the neighboring properties. Neighboring properties must not be disturbed by the
creation of drainage swales. Specific storm water management requirements may be required,
as appropriate, including the addition of gutters or on-site management for specific sites.
Construction and the finished structure must not have a detrimental impact on storm water
drainage patterns in the neighborhood.
4. All air conditioning units must be located in the rear yard of the house, or as approved by the
H RA.
C. Construction Requirements
1. Existing trees identified on the landscape plan as being preserved, must be protected during
construction. A tree wrap with board reinforcements shall be used on trees directly adjacent to
active grading and construction areas. Damaged or destroyed trees must be replaced.
2. The construction site, neighboring properties and adjacent public streets shall be kept free of
construction debris at all times.
3. No construction workers, construction equipment or construction material shall encroach upon
neighboring properties.
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401253v8 CBR RC125-65
4. The property shall have a new sanitary service line installed to the City sanitary sewer main
consisting of schedule 40 PVC or equivalent. If there is an existing 6" sewer stub at the property
line, it must be lined with 4" schedule 40 PVC or equivalent to the City's sanitary main, and it
must include a"donut" at the end with cement.
The line must be televised after installation to ensure the following:
1. There are no obstructions in the line.
2. The PVC liner is not protruding into the City's sanitary sewer main line.
D. General Standards
1. The value of the new home must meet or exceed the minimum value specified in the Contract for
Private Redevelopment.
2. All homes in the Richfield Rediscovered Program must be stick-built or high-quality modular, new
construction.
3. Exterior materials (siding, soffit, doors and windows) should be low-maintenance and durable.
Brick, aluminum, vinyl and fiber cement siding are preferred. Natural cedar lap is acceptable if
properly stained or painted. Hardboard panels or hardboard lap siding are prohibited. Roof
valleys must have metal valleys and not be woven.
4. Unit height and mass of the new house shall be compatible with the scale of the surrounding
homes in the neighborhood.
5. Plans must present a balanced and pleasing distribution of wall, door and window areas from all
views.
6. The dominance of the garage door must be minimized through placement, architectural detail,
door design and utilization and design of windows. Garages, where the garage door faces the
street, shall not be located closer to the front lot line than the foremost facade of the principal
building facing the front property line. Garage sidewalls that face the street should appear to
contain habitable space. This can be accomplished by incorporating windows and other design
elements into the garage wall that are in character with the remainder of the dwelling. For lots
that have alley access, the garage should be oriented to access the alley.
7. All building plans must have been prepared in consultation with an architect or qualified
draftsperson. All requirements by the Building Inspections Division must be met.
8. All Richfield Rediscovered houses must meet or exceed Minnesota Energy Code requirements.
9. All new homes shall be built to provide high quality sound insulation. Recommendations for sound
insulation measures may be provided on a site-by-site basis. All construction must conform to
current sound attenuation building standards for properties located within the 1996 65+and/or
2007 63-64 DNL contours. In cases where sound attenuation standards are required and an
increase in costs can be documented, the HRA may consider a reduction in the price of the lot in
an amount equal to 75 percent of the cost of sound attenuation measures up to a maximum of
$7,500.
9. If a variance is required to construct the proposed development, the HRA may, at its sole
discretion, choose to reject the application.
10. If the HRA accepts an application that needs a variance(s), sale of the property will be contingent
upon the applicant obtaining the necessary variance(s). The Applicant is responsible for applying
for the variance(s) at its own expense. The HRA, as owner of the property, will, however,
cooperate with the application.
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401253v8 CBR RC125-65
E. Green Community Concepts
Priority will be given to projects incorporating the green community concepts listed below. Any
concepts the applicant would like considered during the application process should be explained
in a written plan submitted with the application. A$5,000 rebate will be provided to the Applicant
for projects that obtain certification through LEED for Homes, Minnesota GreenStar or Minnesota
Green Communities.
1. Protect and conserve water and soil. To reduce water consumption, consider the use of water-
conserving appliances, fixtures, and landscaping. Steps should be taken to minimize the loss of
soil and sediment during construction and occupancy to reduce storm-water sediment and air
pollution.
2. Minimize energy consumption. Reduce energy consumption by taking advantage of natural
heating, cooling and day lighting, and by using energy-efficient appliances, equipment and
lighting.
3. Enhance indoor environmental quality. Use non-toxic materials, ventilation and exhaust systems,
and moisture control products and systems.
4. Use environmentally-preferable materials and resources. Use locally-produced, salvaged and/or
manufactured materials, products with recycled content or from renewable sources, recyclable or
reusable materials, and low-VOC-emitting materials.
5. Reduce waste. Reduce and manage wastes generated during the construction process and
opera#ion of buildings. If demolition occurs, sort and recycle leftover materials and debris.
VII. City Review Procedure
1. Applicant reviews proposed project with HRA staff before plans are finalized.
2. Applicant submits application, plans, and application fee at least 45 days prior to the HRA
meeting.
3. An application is considered to be received when delivered personally to HRA staff in a pre-
arranged meeting. Following this meeting and upon receipt of the application fee, the lot will be
considered reserved and no additional applications will be accepted for the proposed lot while the
application is under review.
4. If an application is determined to be incomplete, the applicant will have 30 days to submit a
complete application. If a complete application is not received within 30 days, the application will
be rejected and the lot will be made available for new applications.
5. HRA staff review application to ensure conformance with House Design and Site Development
Requirements.
6. HRA staff may reject or accept an application at its sole discretion.
7. The Builder or Buyer executes a Contract for Private Redevelopment.
8. An application is determined to be complete and the Contract executed at least three weeks prior to
the HRA meeting.
9. HRA staff publishes a legal notice of the public hearing and prepares a report and
recommendation for the HRA.
10. HRA reviews application, conducts a public hearing, and takes action at the HRA meeting.
B-8
401253v8 CBR RC125-65
11. If approved, the Contract for Private Redevelopment is executed by the HRA.
VIII. Lot Sale to Builder or Buyer
1. Upon approval of the application by the HRA, a closing will be scheduled between the HRA and
the Builder or Buyer.
2. The HRA will prepare all statements, affidavits, documents, and general release forms required
for closing.
3. The Builder applies for a building permit prior to closing. The Builder is responsible for acquiring
the necessary building permits with the City of Richfield Building Inspections Division. If changes
to the plans are required by the Inspections Division, the applicant must notify HRA staff.
4. The Applicant provides evidence to HRA staff that all requirements to proceed with construction,
as determined in the Contract for Private Redevelopment, have been met.
5. The HRA conveys the property to the Builder or Buyer by Quit Claim Deed. The site will be so(d to
the Builder or Buyer at the fair market value as appears on the Lot List.
6. At closing with the Builder, the Builder provides a Letter of Credit or cash escrow for $10,000 to
the HRA.
7. At closing with the Buyer, the Buyer signs a mortgage and promissory note for$10,000 in favor of
the HRA.
8. Upon completion of the project, the Letter of Credit or cash escrow is released to the Builder or
the Buyer's mortgage is released. A Certificate of Completion is executed by the HRA, releasing
the obligations of the Contract for Private Redevelopment.
IX. Program Marketing
Richfield Rediscovered program marketing is entirely at the discretion of the HRA. It may include the
following:
1. Buyer So/icitation. The HRA may market the program to potential Buyers through promotional
articles, direct mail, the Internet, or other methods as deemed appropriate. Buyers may be any
financially capable individual or household, including first-time buyers, move-up buyers or empty-
nesters.
2. Public Promotion.
a. The HRA will periodically provide information about the program through articles in city
publications, on the City's web site, on the Community Cable channel, or via press
releases to promote community awareness.
b. A public open house may be held to provide an opportunity for residents and other
interested parties to collectively view the finished homes. The Parade of Homes Fall
Showcase and Spring Preview may also accomplish this.
A program information package will be mailed to all interested participants. The information packet may
include the following:
1. Lot List
2. Richfield Rediscovered Lot Sale Procedural Guidelines
3. Application Form
4. Sample Contract for Private Redevelopment
X. Data Privacy
All information secured through the program is subject to the Data Privacy Act.
B-9
401253v8 CBR RC125-65
EXHIBIT C
QUIT CLAIM DEED
STATE DEED TAX DUE HEREON: $
Date:
FOR VALUABLE CONSIDERATION, Housing and Redevelopment Authority in and for the
City of Richfield, a public body corporate and politic under the laws of the State of Minnesota,
Grantor, hereby conveys and quit claims to , a
under the laws of the State of , Grantee, real property in Hennepin County,
Minnesota, described as follows:
, according to the map or plat thereof on file or of record in the office of the Hennepin County
Recorder.
This deed is subject to that certain Contract for Private Development between Grantor and
Grantee, dated _, 20_ (the "Contract"), recorded _, 20_, in the office of the Hennepin
County Recorder/Registrar of Titles as Document No. The Contract
provides that the Grantee's rights and interest in the real property described above are subject to the
Grantor's right to re-enter and revest in Grantor title to the Property under conditions specified
therein, including but not limited to termination of the Grantor's right to re-enter and revest upon
issuance of a Certificate of Completion as defined in the Agreement.
(if more space is needed, continue on back)
together with all hereditaments and appurtenances.
❑The Seller certifies that the seller does not know of any wells on the described real property.
❑A well disclosure certificate accompanies this document.
❑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.
HOZISING AND REDEVELOPMENT A UTHORITY
IN AND FOR THE CITY OF RICHFIELD
Affix Deed Tax Stamp Here
By
Its Chairperson
By
Its Executive Director
C-1
401253v8 CBR RC125-65
STATE OF MINNESOTA
} ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this day of , 20_, by
, the Chairperson of the Housing and Redevelopment Authority in and for the
City of Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of
the corporation, Grantor.
NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAK)
SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT
STATE OF MINNESOTA
ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before me this day of , 20_,
by , the Executive Director, of Housing and Redevelopment Authority in and for
the City of Richfield, a public body corporate and politic under the laws of the State of
Minnesota, on behalf of the corporation, Grantor.
SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT
NOTARIAL STAMP OR SEAL(OR OTHER TITLE OR RAK)
Check here if part or all of the land is Registered(Torrens)❑
Tax Statements for the real property described in this
instrument should be sent to (include name and
address of Grantee):
This instrument drafted by:
Kennedy& Graven, Chartered
470 U.S. Bank Plaza
200 South Sixth Street
Minneapolis, MN 55402
G2 '
401253v8 CBR RC125-65
EXHIBIT D
WELL DISCLOSURE
❑ The Seller certifies that the seller does not know of any wells on the described real property.
❑ A well disclosure certificate accompanies this document. [form attachedj
❑ The status and number of wells on the described reat property have not changed since the
last previously filed well disclosure certificate.
D-1
401253v8 CBR RC125-65
Miffiesata Departn�ent af Healdi M I N N E S 0 T A
�Vell Nfanageuient5ecrion �
P.O.Hog 6197�
St Pata1 Mmnesoha �S1Crf-i?975
6a1-2U1-�l5$7ar8�1-383-9$Q8 0I l N >
�cM�r_heatfh_sttrte►sn.us.!itns?eJru�elts
R'ELL DISCLOSi-RE S��lTE11IE�T'
Prior to siatun�au agreenieut to Se11 or transfer real prap�iiy.tl�e seller unist al�-a�-s disclose iu Et-ritine(�.�=ell
CITSC�OSLiT2 SY1t21II2Rt�[Il�141��110ll�Ild S$�Y115�S�rell st2riis defi�ed beloar-�o#all ac•e11s ou the giv�rity#a tlne lnn•er.
aloxi��;itl�the le�l dc�criptiou aud caiu�ry af the pruperty.aaxd a sketelz rn�sha��uia#he loeaticui c�f each ta-zll or
uicli�ate tliere are uo�t-�lls ou khe pro�rty.
R+'ELL DISt'LaSL'RE CERrIFIC:�TE
����ell Disclosure C'errificate is requu�ed to be filecl n-hen there are jrells on tt�e pi�ope�°t��.
� At tlte tui�af closinQ.tlie s�ell d'tsclosiue statt�ent iufoiyuatian.alon�n-ittli the propzrt4 l��xScr"s ik�uie aiid
tnaiWig address.mnst l�e pro�Yded cm a tt'ell Disclosure Ceitificate 4;�E�C�fann.t��hen recc�rdin�a cized or
t7Yj121'1I15TTlill1211'I LTf C011�ti2�`�I1C2 IZC�illt112�2 CC!'�3fkCTY2 O�R2c1I E543Y2`'�7IU2�C�R��.�Ci?ll7�12T2tI��rDC ffiLiSY�
fiTeel s<<itl�the cauut}=it:cor€ler.inclueliva a�Sfi fee payable ca the c+oamt�-rzcorder.
• If thne is a presYOUSI�filed tEDC atid tlie munber of ts ells and or the��°ell statii�s has�han��.a uz�c-6i�rDC'must
be filed.Y�u ma��searcli for pres7ously filed�E'DCs at�
7Y►4'IP.I1Pf(IPJP.Sd1Jl2.Ttlil.11SJ(�1�1-S�CIiJIt�eJls/disclosxrr esfcliselapar�e:•.htrrat
• If the muuber and stat�as af a�-el�s��n tl�e propei4}-reinaiu�uichaii�eci suler tl�e prec iously fite�i @fy'IX'.ry stateinent
must be pl7ced ou zl�e deeci ar other uistnuuent of con�-eg-ance tliat seads 'I fll!}�Q)f1IFLQ1'11'ifll t�iE'�7l"0�2.77{�
[ICSCi'T I7CYI Zii f�TTS Ji7S177fAl2TJ7 lliF[II CP7'llfl'/'FPflf lld6 S1L3filS QTPlI d1lfFlll7E'I'Of)4G'FPS OY7 1J7P[��SC77I��'L°t7I1J1 Uj?CI'f1'JT(ll�E'
►�czt clar�rtgerlsi�rce tlre Inst�etiaoiarlg��1e�1 i�=ell e�iscTosrn�e cer7i�r�ate."Tlus state�it�t�uuit be c�ntsfied bg-Lhe
Eniyer c�r seller aud no���C is requu�ed.
If there are no isrlls on tLe propei•tr,a n'etl Disclosure Cerll�lflt4 IS IIOt 1•equired to be filed.Ho�4-e�-c��.the
S�eller uiust certih�a s#ateuieni ou t�ie deecl or otlier uishlui�ent af conz-�tiauce that re��etls "TT�e S�IPer-c�e��ti�ies�rnr rhe
Seltei�c�aes raut kjroin a�Qlll`i1'�'IPS O)i I�PE[IeSCl'lgCtl)'BQI�)YD�P�7y."
�ti STRLTfTI4\TS FOR C:OI�IPLETII G THE«'ELL DISCLOSIRE CERTIFIC_�TE
.'��50 tee ii�u�t be iu�flu.�d sc�zn�ubu�ittuig this form to tl�e cotuit�reeorcler's�fhce.I�x fee is to be paid b}-the
buyer e�r�rson hliug�lae deed.Plea�ivake#lie c}�eek payable to ihe C`at3ni�Re.i�rder.A co�a4°oi t$�is Ci'DC should
bz pmg-ided to t�e pra�erty buz'21'�T 4�12 ilIii�Of CIOSlll�.
PROPERTY,BiTYER,.�R�SEL.LER I\'FOR\L�T`IO\
A. PROPERTY LC}C:�TIO�LEG�Ii.DESCRIPTIO\-Proz-itiz ihe c<���ut�°ilatue:°i�ryaiatzed"a me#es and
baeuicls cieseriptiau�qia����tile[one quaiter seetioi�is irq�in�erl]or gcat�enuuent lai.s�eciion tat��u�ls�p.atxd raitge
utuubei-j:aud�r"��latted"i lot mnnlx�•aud`Qa•blaek ntimixr.aud additiau naulej:pa•�rt�-s#reet at�dress�if
��plie7ble j.and eit;4thi�is ihe�h�sical location of thz propern u�t�the i2�ailiug addre�i j:pro�rt;°ID nuuuUes L�r
�arcel utuuiaer•(fl�tior4�li.:�itach a son�plete tz�al deseriptiou c�f tlL�propertg=.
B. PRaPERT�'SL'I'ER_li.=�IL.L�G_�DDRESS�IFTER C'LOSI\G-P�•,�S-i�e ihe�ni��er's fu3�u��e(or
coii�jaug uaane if buger is a crnupan}°}.fi�ll aciclress,vid�lione naunbea�q�it3cli�civt�area��j.Be sxue#a u�eliude
a com�lete n��i�ii��ddress.If tlie pr��perty li�Oi11T��'6'SS"112C1.�)1'c�T"iCl2 t�i2 17�3L1ie 3II(�CQ11113I212 11i�1L1i12 21(�T�SS sDt
t�lZ COI1[aC[ik'[SUIl.
Setler's\ame—PI�1se�ro�s-ide t}�e i�ame ot tl�e seller iu space pic��°ided��.�iea�print�.
D-2
401253v8 CBR RC125-65
C'. CERTIFICATIO�BY SELLER-T7ie seller(or desigtiated r�res�tati�e}skoi�ld si2n tlus certificate befi�re it
ES 511�111TtC(I f0 L�12 COl1Ilhl IYCOIC�T'S O�IC�.If 1I22 52II2T 15 L1tL3IlI2 YO Sl�ll�lZ dOCillll211��.t.[12Z Uil�=er{or desipxi�ted
1't'j3I'Z4211[�i[1S"�}Illa}�StQ]1 Lile CZI'�1fiCaT2�}�ft3T2 lt 15 SL1UI1lltYeC�t0 1�1e C011tlly SYC4)Ti�ZS�S Ot�LC�.
D. CERTIFIC:ATTUi�BY BLYER-If the sell�r is unable to si2n the docu�ieut,ihe buycr{or d�si��tzci
r�reseutati�e}uia}=sign tlae eu-tificate before it is subn�tted to the coimiy rzcordn•°5 office.tEniere deeds are
Qi:-�.ua fiilfiliincnt of a Coniract for Deed die��VDC mi�st b�si�ed b}�t�e bu�-er or the gerson autlioi�izzd ta
a�t oi�l�elialf af the bug=er.
Siguature Required-Tllzre urus3 be at least ane si�iahue an t�e ceilificate.
\�'ELL I1tiF�R�iATI�?�
E. ���E.LL LOC�ITOi\L:EG�L.DESC'RIPI'101�-For each R-ell l�eing disclosed tl�e fallo�-iuge phvsical locatian
iufaixuati�is reqitired:
� couud}ua�xe.quartil�{aue qi�arter section is requiredj.szction.to�ruship.ar;d raike ui�nbes:and�or
� roual}'�:auae.�ose�ncut lot.sectiou.tots-nship.�id ran¢e n�unlxr:aud:`oi�
• ec�ium;uau3e.lot i�iunlxr and ai°hlack nwuUer.an€1 addit's.an i��+tue
\`�LL ST�TL-S I\FOR�I�TIO\-Iudicate die stahis of each t�•ell. Check onh-one bos.
In L-se-A ts�ell is"it�use"if the�rell is operated on a dailv re�ilai•.or seasonal basis.r1�sell"in use"inclitdei a
�1-elt tliat c�perates for tlae�iupas�of irciea�ti�iL fv�e prote�tion.ar enier�ene}puulping.
Not In i�se-A n-et1 i�"RO[Y19 llSZ"if tl�e n-ell cioes nvt ntzet the defuutian�f"u�use":�bot•e and has t�ot been sealed
by a licensed�i°ell�ontractor.
• If tlae 1`-ell is"not iai nse."'is tiiere a I�iuuiesata Deparhueut ofHealdr t�h=ff1H)�-ariauee fi�r dus�e-e�1?Pleasz
p����ide th��arianc�hacl:ano nwnL,er(T:\).if l�ios�n.
• If tlxe��-eII ii°not iu u�se:'is tliere au 11�1DH r�iauitenwce peru�it tor t$is ts°ell''Please pros-ide tlge pemiit niu��lx�.
if kuod�-��.
Sea�led-:�.qt•ell is"sealeci"if a liczns2d a�-el1 eontractor l�as coiupletelS��illed 7«-e1S bg-1nunpiug�rnut utaterial
ttn•au2ha�ut the eatire ttiell ai`#er rcuiu�-�►1 of an�,,olxhuetiQns froin the irell.�.j[�ell and Boriirg Sza}ina Recoa•ci inuit
U2 OlI�lIZ R`li}1 YIY2Ib�DH.COi1t8Ct 4I1Y2 I4'SDH f{i�2fifV lf 3 52��111tr 1'2CQlt'�15 QIY fllZ.�i'tS`ZII i5°�a�J2C1��1�it�1a5�I112t��
or plastic cap or c��er e�-1u�h is threaded.baltec�.or ta-elded out�the top��f tlie��-ell to preieut enti��iuto the��-ei1.
.� "capped"n-ell is not a"sealed"R•ell.
Iinportaut��'ell Status Iuformatioa:
• 71�e A�IDH�sill follo�°-��,,�-ith the propeny biiy�l°1'ZQaTCIlI1Q TYl�'t1'Z��S dT4CIt952CI i'93„i1C1C lil lli2.��If a ts ell is°not
1I1 ItS�. Ci1C 1JI�E?�I�S(1tS71�Y]llllSt�1T11e2 I�'�LiTll TliZ R`�ll�O'�lll Li�.���1�i'Z i.�le 41"2����sealed"'�34`1 LLC2I15�KI Si`2II
cc�ut��actaa°.or��bzain an:vutual i��uitenance�ei7iut fraui the h�IDH f�r�1'S.
• 10�1auiTei�e p�nuifs are not�rausferaUle.Ifa�;-ell is"ui use."a au,au�teii�ice�nuit is n<�t re�}iur�d.
• If tlie�.t-elI l�as�e�i"s�aled"'bg�souieone otl�ei°tlian a li�eused t�-zll conhn�tor ar a lic�nserl�.°e11 s�aliug
� Collti'�Ctc71'.C11eC1 tI12 L'�"ell St�ihts 85��I10T ill 1i52.��
�clditioual��`ell Inforinarion-Pa•o:-ide the follot�•uig infoiYUation.if l:no,�-u: 141iuues�ra L?ui�iae It�ell Number or
S�Z�Illig Rc'�llFt�NlliliL7ZT.C�9�Z Cl�'.t 2�e�u�tt�.�cii.au or sealins.and uan1�df li.eus�d�-z11 coi�tra�tar.
SKETC'H iL=�P-C'�uiplete tlie sketch ivap as uistil�eted ou the��C'.Tlte l�cation of each�.-e11 naii�t Ue indic�eted.
II[�lf It7C�tlfl11 t�lf$iC�II li 1tiDf�11�T+S11.�1�5"Z t112 S<`fll LOl'a12CI UT��8 1DZi5011 C�i1�1IIFiZ3[Cl�OC&Le'A'���5.Slt�I1�5�I1C21152CI
4t'2�1�011tfBCtOf.
If���,i�liaz-e qi�s�i�ns.Ptease cflnt<�ct tl�e A4DH tT�`�II D'Iaixage1t1c11t SeC?iogl a[GS 1-'�l-�S�i?or S9�iJ-383-98�78.
To reqxzest t�is dc���uueut in atzother fonnat.ca116�1-�O1-�16fl0,Deat and h3sd-ot�zarui2: TT�'�651-'fl1-579'.
Visit tlie AiDH�,�'e�l l�Saua�eauent Se�zi�+�s.�'ZII D1iCI05111'2 PP��$Yr�Ill S►'2L�51��7�:
1►�a}�a�,he�r,itlr.stat�.ra���.trs9drlsJedlh�=elTsldisc°I�s�rr�es.
D-3
401253v8 CBR RC 125-65
COL?�Tl[F�E O�Zl �IDH ITSE O\Z]
!II\TESOTADEPr1RT�iE\T OF AE_1LTH
�Bell hiaaagement Sectian P_O.Box 61975,St P�rl,hiinnesota»1b9-0973
651-20]-0587 or 800-3$3-9808
�1'ELL DISCLOStiRE C;ERTIFIC:-�TE
FLEdSE TYPE t7ll FRINT1iZL I.NFOR'4fi1T1�?1T
Person filiu deed must iaclude a SSO fee a ahle to tl�e coun =recorder.
A. PROPERTY LOC'ATI�\LEGaI.DESCRIP'TIO�
Attach a legal descxiption of the prr.��erta�.
Couuh• Section No_ Tounship No_ Range I�ro. Quaztcr{or Go�e��rni Lot}
Hennepin
Lot IVo(s)� Blodc No. Addirion Nazuz dudo[ Tract
Prapech•Jire�t Address
CityrTo«�nstrip ZIP C«le Pra�peity ID No_:Parrel Na 4oFh�?
Richfield 5�423
B. PROPERTI'BLYER�iAILI\G ADDRESS AFTER CZOSL�G
Fust I�'asue Middle Imtial Lasr Natne
Campany Name(if agplicable)
Mailing A�ddress
Mailing Address
Citsr �tate.�Pra�-ince ZIP C«te Telephoite i11o_(includiing area cede)
�Q�Ya��Of�1�(�lea��t� Housing and Rede�elopment Authority in and for the City of Richfield
C. C"E.RTIFICATIO\BY SELLER
I ce�ifi fliat tt�mforinaison pracided on dus cc-�iificate is acc�ate and complete to tlxe best of ury 3mo�s�dge.
�ignatnre af Selkr or d?e�i�pated Representat�e-e of Seller Dare
D. CERTIFICATIO�BY Bi'YER
For fulfill��c►t of a comhact for deQd_.the Uug er or penon authoriz�d to act on behalf af the bu�er,nn►si sign a Z4'ell
Disclos�e Ce�tificate if there is a�;��ell ou the properhy.
In the abseuce vf a seller's siguahue,the bag�er,or person authorized to act ou behalf of the bi�}er may sign this R'ell
Disclosu�C�rtificate_No siguature i3 required by�the buyer if the seller has si�ied aUod e.
Based cm disclasu�infonnation pro�ided to me by the seller or other a��ailabl�iufom�atiov_I certifa=tLat�e inforn�arion
on this certificat�is aceurate aad complete to the best of m}�knoti�ledge_
Sigm�tuse of Bmy�r ar Desigvated RepaesenAalice af Bu)-er �atte �
I�IPOI�tT�i\T�pTE: The Minnesota Departinent of Health(MDH}e�ill follou°-up�►Yih ih�g�ro�erh�bu��er regardinQ
a�}Vrells disclnsed as not in t�se�If a v►ell is not in use_the prr��ert�-onner sstust either mi�ttYa the n ell to use_ha�e the
���ll sealed bt�a licens�d s�ell�contractor,or obtain an anut�al u�auitenance gennit from the CvIDH fem g175_A c+opg�of tlus
i[°ell Disclassu�C+�tifi�aie slwt�ld Ue g�rot-ided to the propert��bu}rer at tl�e time Uf ciosine.
D-4
401253v8 CBR RC125-65
M I M N t a r� �l�iL\1ESOTA DEPARTZ�IE\T'OF HE.�IILTH
Indicate Totai Nmuber of
�YELL DISCLUSL-RE CERTTFIC�ITE ��.,��5,�p��m'
PLEASE TYPE aR PRINl ALL�'VF°DR�T7UY
- OF►A�iMENiOiH t N
Fill out a�parate nell iufoiYnation ga�e if more tlian t�-o«•ells are lt�cat�an the pro�erty.
E. «'ELL LOC'�TIO�L,EGrAL DESCRIPTIOt
«�I.L�1—If ihe praperr�•kgal desaiptiau has mare t6an c»�e seciion ton�ship,or zange munber��quarter(or go�;emn�eent lat}_or
lot�-block nwnber_ ide le de � on infonnauion re. d� the h•sicallorafion of dris R�ell.
Couuh° Sertion No. Trnvnship Nc:. Range I�(o_ Qxazter(rx C'w1m�u�eut Lot}
Hennepin
Lot 1`ro_ Bl�od:No. Addirian Namz Ouilot Tract lVfili L�mque R�ell No.or Sealing
Reca�d No_
«�ELL ST:1TC�(Ci�k anh one bux,) Date of`4ell Ctm.�c�uucoion or
t[�LI:L5: ❑ In LTSe(1) ❑ Not in U.se(2) ❑ Seated by Lieeused�ir'ell Co�ra�or(3}" �1�€
'`CaIl]II1H to cerifi-�record is oe Sk.
Name ofI.icensed'4Ve11 Corn7actor
If the u-eli has Ueen seak3 ir}�san�eane o�er rohaa a ticemsed�c�ell coatracior or a ficensed tiiell sea�ime
conhactar_rfieck the r�Hd status as not sn use_ also see 7h9POR7r1NT IVOTE"om 1_
If vG�ll is not in nse.ts thPre an MDH a�ce fo�dris�eil? If the�elt is axoa na use,is there an 3vIDE3 u�aintenance pemrit for
❑ Yes ❑ No ihis�-e1�? ❑ Yes ❑ No
If yes,praoide tfie�•ariance erackiag Fexmlxr('TN) If s�es�procYde�pemui tnunlxr
«'ELL�2—IEthe 1noP�+�����Pticxi Las rn�e than c»�e seetiaa.Wr�nstup,or r�nre aumlx�:quarter(or gcn-ernment k�t}=or
lat or block aim#ir: m°ide fic deszri on i�nfomiarioa s Lhe i�rical iocation of this uclL
Cwmtq S€etiexi Na To�nship Nc+. Rac�e No. Qu.vter(cx Goc*eaau�ut Lor)
Lot Na Bloel No. ?�ddeuon N�re Clutlot Tract IvL1�i Uniqoe�i el!No.c�Sealing
RecaeRi No_
4i�LL 5T�TL S�Che�ck onh a�L�ox) Date of A'ell Cc,ns�uctirne or
�'Ed.L L5: ❑ In Use(1;1 ❑ N�t in Lrse(2) ❑ Sealed hy Licensed El�ell C�ira€�tof(3�= �� �
'Ca1111II1H to serif�-ualieg record is oa fik.
Naire of Licens+ed L�'ell C�rnv�ractor
If t�ti�e�i f�as beea sealed b}souxmne o@�er dlaa a ficensed ne]I con6ractor or a ficea���11 seaE��
iroatracdaa�check @ie�sr11 stat�as 4a irs nse. ?.lso see`Ih9PC3RT.�NT I�T01E"on L
If n�ll is not in�se,is ther�am MI}H��iavice fa�tlris�.a zll? If the��-elt is uot iu use,is there an MDH n�aintena�e pemut for
❑ Yes ❑ Itio this u-ell? ❑ Yes ❑ �10
Iff}°es,pmq-ide the sariai�ue tra�kux�m�:�r('I NN) If yes,proiide itxe pemui uuxuArcr
SItETCH 1L�P—ak�euh�he locacion ofthe nY11(s�aud inchuk estimated distances frs�m roa�s.�sreets_�nd�ruildii�s_If more tLan
one ticell on pro�rh,use the ireII Ioratiun numbe�°a6ore rQ identifc each n eII.Th�locatiia�of the ca�ell{s}wust tx pro�ided.If the
location of a a�Il is not knn��1�-e the��Il locatecl bS•a persan qnalified to locate nrlls,sucla as a ficensed aYll cantractor.
Infonnatian Ixasided cai thns fcxivl is classified as puhlic ulforna�rirna tmder d�fiaine�ota 5samtes,C�apter 13.
To requesi d�as�icxv�neni n►aarr�er foru�t,call baI-2.01-4600.Beaf and Lard-of-tt�aring: 'IT'3i s5a1-?(3l-y�i97_
Gisit t}�IvIDH'{'�ell hiaoa�eusent Settion.�1�ell I}isclasure Ptogam ccx�te at tii�acvs:l.eatt�r...tate_n3.v,.ras�;rla�•�:eir`�+•ez'Is���isclnsrrtes.
HE-0]381-1? IC�l�tl-03$> a�gs<,usedB ctiiscinsure c�ertif�ate-iusinactions T?Ls2�D1]R
D-5
401253v8 CBR RC125-65
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��DlZ�S �U���/VI HO M�S� '�C. PROPER7Y DESCRlPT10N
C7 t 6 63 7 J�t�1 A ve n u e SO U f f'1 Lot 15, Block 1, McCUTCHEN'S PORTLAND AVENUE PARK,
according to the recorded plat thereof,and situate in
Hennepin County, Minnesota,together with the West
on-half of the vacated alley which accrued thereto upon
60 I
the vacation thereof.
I Ex�snNC I I
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a ,.�.. Floor ' 843.3 I I
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I ad 0 CO1"s 3.00 ,�`,g\a+ 844.9 x��� �
cor s
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I 84z2;` ' ' I hereby certify that this is a true and correct
so IXIS7ING I representation of a survey of the boundaries of
�GF I I the land above describ d
e and of the location of
a proposed house.
Dated this 23rd day of February, 2015
Area = 6,701 square feet(0.15 acre) N REHDER&ASSOCIATES, INC.
Area of proposed house = 1,977 square feet Proposed Garage Floor Elevation = XXX
Area of proposed walk= 27 square feet Proposed Basement Elevation =XXX
Proposed Top of Foundation Elevation = XXX Thomas]. Adam, Land Surveyor
Area of proposed porches = 67 square feet M(nnesota License No. 43414
Area of proposed drive = 517 square feet Rehder and Associotes, �f1C.
Scale: 1 inch = 20 feet CIwL ENGiNEERS l�ND LAND SURVEYORS
3440 Federal prive • Suite 770 • Eognn, Minnesota • Phone (651) 452-5051
JOB: 154-2200.068
Photo of 6637 5t" Avenue
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AGENDA ITEM#: 4
REPORT#: 10
STAFF REPORT
�r► � '�' HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
MARCx 16, 2015
REPORT PREPARED BY: JULIE URBAN/KATE AITCHISON, HOUSING
SPECIALIST
NatitE TirLc
REPORT PRESENTER: ��N BARTON, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
NAME,TITLE
DEPARTMENT DIRECTOR REVIEW: �
REVIEWED BY EXECUTNE DIRECTORe � ,
���
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution regarding the sale of 2517 West 76th Street to the Greater
Metropolitan Housing Cor oration for the construction of five townhomes.
I. RECOMMENDED ACTION:
� 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
Housin Cor oration for the development of five townhomes.
IL EXECUTIVE SUMMARY
The Greater Metropolitan Housing Corporation (GMHC) is proposing to purchase
2517 West 76th Street from the Housing & Redevelopment Aufhority (HRA) for the
development of five attached townhomes.
On January 20, 2015, the HRA conducted and closed a public hearing at which
GMHC had proposed a 6-unit townhome development with four 2-bedroom units
with single car garages and two 3+ bedroom units with two-car garages. Several of
the HRA members expressed a desire to see fewer units and for all units to offer
two-car garages. The HRA tabled discussion of the proposal and asked GMHC to
present options at a work session.
031615 2517 West 76`h Street sale to GMHC.docx
Subsequently, on February 17 at an HRA work session, GMHC presented four
alternative plans, of which the HRA directed GMHC to proceed with the plan for five
units with two-car garages.
If approved, the townhomes would offer 1,400 square feet of finished living and
include two bedrooms, two baths, and an attached two-car garage, with estimated
sale prices between $250,000 and $275,000. Buyers would also have the option of
finishing the basement for additional bedroom and living space.
The proposed homes would have a traditional design and height that would
complement the existing homes in the area. While finished space would be an
option in the lower levels, the units would provide single-level living on the main
level. The homes are also proposed 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). If the project is approved, three of the units
would be sold to qualifying households and finro units would be sold with no income
restrictions. The Contract for Development (Contract) requires GMHC to ensure
affordability in accordance with CDBG requirements.
If approved, GMHC and the HRA will enter into the 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$100,000 in HRA Housing
and Redevelopment funds to contribute toward construction costs. The assistance
is needed to cover the gap between the cost of development and the anticipated
sale proceeds and in maintaining affordability for three of the units. 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 mix of affordable and market-rate housing, the single-level living,
and the energy-efficiency of the proposed housing is consistent with
the Affordable Housing Policy Statement adopted by the HRA on
January 20, 2015.
• 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. C�TICAL TnvinvG ISSUES
• The planning approval process will begin following HRA approval of
the Contract for Development.
• The Contract requires closing on the property to occur by November
1, 2015, and construction to be completed by November 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 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
• A public hearing was held on January 20, 2015.
• Mailed notice was sent as a courtesy to homeowners and occupants
living nearby notifying them of the continued discussion.
• The HRA Attorney prepared the Contract for Development. 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.
• 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. ALTERNATIVE RECOMMENDATION�S�
• Do not approve the resolution authorizing sale of the property to GMHC.
V. ATTACHMENTS
• Resolution
• Contracts for Development
• Site Plan
• Elevations
• Floor Plans
• Photo of lot
VI. PRINCII'AL 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 3/4 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/of the SE %4 of the SE
%4; thence North along said West line of East 3/4 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 16th day of March, 2015.
Chair
ATTEST:
Secretary
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 76T�� S'1'RE�T WEST, RICHFIELll
This Instrwnent Drafted by:
The Housing and Redevelopment Authority
in a��d for the Cit,y of Richfield
G700 Portland A��enue Soutl�
Richfield, Minuesota 55423
Telephone: (612)8G1-9760
CON��C7C��R�B�VELO�l�E1�1'r
T'I�IS CONT�C`�" �'�� �IJ�VELO�'1��1�1T �Agreement), made and entered into as of
this of , 2015, by and between tlle Housing and Redevelopmeilt Authority in and
for the City of Richfield, a body corporate and politic under t�e 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 5`h Street, Suite 710, Minneapolis, MN 55402 (Developer).
WITN���ETI-�:
V6T�IElaEAS, the HRA has purchased the property at 2517 76t�' Street West, Richfield,
legally described as follows:
That part of the East 3/4 of the Southeast Quarter of the Southeast Quarter (SE '/4 of SE 1/4) of
Section Thirty-two (32), Township Twenty-eight (28), Range Twenty-four(24), described as
commencing at the northwest corner of said East '/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 '/4 of the SE 1/4 of the SE '/a to the point of
beginning, according to the United States Government Survey thereof and situate in
Hennepin County, Minnesota(Property),
for the purpose of providing affordable housing in the City; and
WH��AS, the HRA purchased the Property with monies from the Community
Developrnent Block Grant Program(CDBG); and
WH�REAS, the City of Richfield (City) and the HRA have previously created and
established a New Hoine Program pursuant to the authority granted in Minnesota Statutes, Sections
469.001 tluough 469.047; and
WHER�AS, the Developer has proposed the Improvements, as hereinafter defined, for the
Property which the HRA has determined will promote and carry out the objectives for which the
Property was purchased; will assist in carrying out the objectives of the New Home Program; and
will be in the vital best interests of the City, and the health, safety and welfare of its residents and in
accord with the public purposes and provisions of the applicable state and local laws and
requirements.
NOW, THERE�OY�, in consideration of the mutual covenants and obligations of the
HRA and the Developer, each party does hereby represent, covenant and agree witli the other as
follows:
AR�ICLE I.
1
I)E�I1V��4'i0191�, �X�I��I'�'S, RIIg.E�OF IN�'E�'��'ATION
Section 1.1. 19e�inatao�as. in this Agreement, the following terms have the meaning given
below unless the context clearly requires otherwise:
(a) �uildin� Plan�. The plans and specifications submitted by the Developer to the
Building Official in connection with its application for a building permit.
(b) C�. The City of Richfield, Minnesota.
(c) Construction Plans. Collectively, the plans, drawings and related documents
related to the Improvements, which are lisled on Exhibit A.
(d) I9eveloper. The Greater•Metropolitan Housing Corporation(GMHC).
(e) Develonanetat. The Property and the Improvements to be constructed thereon
according to the Construction Plans approved by the HRA.
(� Event of Default. Event of Default has the meaning given such term in Section 8.1.
(g) Holder. The term "holder" in reference to a Mortgage includes a lender, any insurer
or guarantor (other than the Developer) of any obligation or condition secured by such inortgage or
deed of trust.
(h) Housin� and Redevelonment Authorities Act (HItA Actl. Minnesota Statutes
Sections 469.001 through 469.047.
(i) I�RA. The Housing and Redevelopment Authority in and for the City of Richfield,
Minnesota.
(j) Itnnroveanents. A townhotne development with approximately five (5) units of
owner-occupied housing to be constructed by the Developer on the Property, as more fully specified
in the Construction Plans approved by the HRA.
(k) Mort��ge. The term "mortgage" shall include the mortgages referenced in Article
VI of this Agreement and any deed of trust or other instrument creating an encumbrance or lien
upon the Property of any part thereof, as security for a loan.
(1) New Home Pro�ram. HRA program to encourage development of new housing
oppoirtunities for low to moderate incoine buyers.
(m) Pro er . The real property legal described as:
Lot 4, Block 4, Blair's Wooddale Third Addition, Hennepin County, Minnesota, according
to the map or plat thereof on file or of record in the office of the Hennepin County Recorder.
2
__ .h�ving_a.stre.et address_of:-- __ __ _ _ _ ___ _ _ _ _ _ _ _ _
2517 76t�' Street West, Richfield
(n) Quali�ed Buver. A purchasing individual or family whose income does not e�ceed
80 percent of the Twin Cities area median income and is qualif ed to buy the Property for their
occupancy.
(o) Unavoidable Delavs. Delays «�hich 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 Agreernent, which are beyond the control of tlie Developer.
Section 1.2 Exhibits. The following Exhibits are attached to and by refereiice made a part
of this Agreement:
A. List of Conshuction 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 wor•ds of similar import, without reference to
any particular section or subdivision refer to this Agreeinent as a whole rather than any particular
section or subdivision hereof.
(c) Refei•ences herein to any particular section or subdivision hereof are to the section or
subdivision of this Agreeuient as originally executed.
(d) Any titles of the several pai�ts, articles and sections of this Agreement are inserted for
convenience and reference only and shall be disregarded in consttuing or interpreting any of its
provisions.
ARTICLE II.
REPRESENTATIONS AND UNDERTAKINGS
Section 2.1 Bv the Develoner. The lleveloper makes the follo���ing representations and
warranties as the basis for undertakings on its part herein contained:
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(a) The Developer has the legal authority and power to enter into this Agreement, and
has duly authorized the execution, delivery and performance of this Agreement; and the
individual(s) who execute this Agreement on behalf of the Developer have the power and authority
to bind the Developer;
(b) The Developer has the necessary equity capital or will obtain commitments for
financing necessary for construction of the Improveinents;
(c} The Developer will construct the Improvements in accordance with the terins 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 inanner, the requirements of all local, state and federal laws
and regulations which must be obtained or met before the Improvements may be constructed; and
(e) The plans for the Improvements have been prepared by a qualified draftsperson or
architect.
Section 2.2 Bv the I�RA. The HRA makes the following representations as the basis for
the undertaking on its part herein contained:
(a) The HRA is authorized by law to enter into this Agreement, to cariy out its
obligations hereunder, and the individuals who execute this Agreernent 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 requireinents, 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
consh•uction of the Improvements; provided, however, that nothing contained in this subparagraph
2.2(b) shall be construed to limit in any way the reasonable and legitimate exercise of the HRA's
discretion considering any submittal or application.
ARTICLE III.
ACQUISITION OF PROPERTY; CONVEYANCE TO DEVELOPER
Section 3.1 Sale of Propertv to 1)eveloper. The HRA is the fee owner of the Property.
The HRA agrees to sell the Property to the Developer and the Developer agrees to purchase the
Property from the HRA in an "as is" condition. The HRA agrees to convey the Property to the
Developer by Quit Claim Deed in the general form of Exhibit B. The purchase price for the Property
will be $1.
Section 3.2 Title and Examination. As soon as reasonably possible after execution of this
� Agreeinent by both parties,
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(a) HRA shail surrender any abstract of title and a copy of any owner's title insurance
policy for the property, if in HRA's possession or control, to Developer or to Developer's
" designated title service provider; and
(b) Developer shall obtain the title evidence determined necessary or desirable by
Developer or I�eveloper's lender, including but not limited to title searches, title examinations,
abstracting, a title insurance commitment or an attorney's title opinion, at Developer's selection and
cost, and provide a copy to the HRA.
The Developer shall have 20 days from the date it receives such title evidence to raise any
objections to ti�le it may have. Objections not made within such time will be deemed waived. The
HRA shall have 90 days from the date of such objection to affect a cure; provided, however, that the
HRA shall have no obligation to cure any objections, and may inform Buyer of such. The Buyer
may then elect to close notwithstanding the uncured objections or declare this Agreement null and
void, and the parties will thereby be released from any further obligatian hereunder.
Section 3.3 Well I}isclosure. Seller does not know of any wells on the property.
Section 3.4 Closan�. Closing on the Property will take place on or before November 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
November 1, 2015,either parry may terminate this Agreeinent.
Section 3.5. Closing Costs. The Developer will pay: (a)the closing fees charged by its title
insurance company or other closing agent, if any, utilized to close the transaction for
Developer; and (b)the recording fees for the Contract for Development and the deed transferring title
to the Developer. The HRA will pay all other fees normally paid by sellers, including: any transfer
taxes, and any fees and charges related to the filing of any instrument required to make title
marketable. Each party shall pay its own attorney fees.
Section 3.6. Sewer and Water. HRA warrants that city water is available at the lot line
and city sewer is available at the curb.
Section 3.7. ISTS Diselosure. 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 Speeaal Assessment. Real estate taxes and installments of special
assessinents will be prorated between the HRA and Developer as of the date of closing.
Section 3.9 Soal Conc��tpc�ns an€c� �-iaza�•dous Wastes. The Developer acknowledges that
the HRA makes no representations or warranties as to the conditions of the soils on the Propei�ty, its
fitness for construction of the Improvements or any other purpose for which the Developer may
make use of the Property, or regarding the presence of hazardous wastes, pollution or contamination
on the Property. The HRA will allow reasonable access to the Property for the Developer to
conduct such tests regarding soil conditions and hazardous wastes as the Developer may desire.
5
Permission to enter the Property to conduct such tests must be given in writing under the terms and
conditions established by the HRA.
Seet�on 3.fl0 Su�vev. The HRA will allow reasonaUle 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.
Sectiota 3.11 �'a�ees. All healthy trees will be saved and protected by the Developer during
construction, to the extent possible, except those that specifically interfere with the construction of
the Improvements. Trees requested to be removed must be identified by type on the site plan
provided by the Developer.
Section 3.12 Sale to �uali�ied �uver; Cove�ant on LJse. 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 ter-ms 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 permitted by the City.
Section 3.13 Adcliteonal Afffordable Housin Assastance. The HRA has agreed to pay up
to $100,000 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.
Section 3.14 Right of Entrv. The HRA grants to the Developer, its agents, employees and
contractors, the right to enter upon the Property during the period commencing on the date this
Agreement and ending on the Closing Date, for purposes of placing and maintaining a "for sale"
sign on the Property.
In consideration for such right of entry,the Developer agrees to:
(a) Notify the HRA at least 48 hours in advance of the date and time that the Developer, it
agents, employees or contractors, will enter the Property and of the purpose for the entry;
(b) Dispose of all solid waste generated during the course of the Developer's activities and
other work on the Property in accordance with applicable federal, state and local laws, rules and
regulations;
(c) Do no unnecessary damage to the Property and restore the Property to substantially the
same condition as the condition in which it was found by the Developer at the time of entry upon the
Property by the Developer, its agents, employees or contractors; and
(d) Hold the HRA harmless from and indemnify the HRA from any and all claims, damages,
judgments or obligations, including the cost of defense of suit, arising out of damage to Property or
arising out of injury to anyone incurred or alleged to have been incurred in connection with or as a
result of any work done pursuant to this right of entry, or as a result of the intentional torts or
negligence of the Developer, its agents, employees or conh•actors. Notwithstanding the foregoing,
6
nothing in this A�reement shall be deemed a waiver of defenses or limitations available to the HRA
under Minnesota Statutes, Chapter 466(the Municipal Tort Claims Act).
Aig'I'�CI.E I�.
CO1�T5TRUC�ION O�'IMPROVEMENTS
Section 4.1. Construction of Iamr�roveanents. The Developer shall construct the
Improvements 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 Improvements in good repair and
condition until sale of the Property to a Qualif ed�3uyex•.
Sectnon 4.2. �uafldin� Plan�. The Developer agrees that the City of Richfield building
official may withhold issuance of a building permit for the Improvements unless the Building Plans
are in conformity 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 requirements have been met. If the HRA
determines such Building Plans to be deficient, it shall notify the Developer in writing stating the
deficiencies and the steps necessary for correction. Issuance of the building permit by the City with
the approval of the HRA shall be a conclusive determination that the Building Plans have been
approved and shall satisfy the provisions of this Section 4.2.
Section 4.3 Schedule of Construction. Subject to Unavoidable Delays, construction of the
Improvements shall be completed prior to November 1, 2016. All construction shall be in
conformity with the approved Construction Plans and the Building Plans. Periodically during
construction the Developer shall make reports in such detail as may reasonably be requested by the
HRA concerning the actual progress of construction. If at any time prior to completion of
construction the HRA has cause to believe that the Developer will be unable to complete
construction of the Improvements in the time permitted by this Section 4.3, it may notify the
Developer and demand assurances from the Developer regarding the Developer's construction
schedule. If such assurances are not forthcoming or are deemed by the HRA at its sole discretion to
be inadequate, the HRA may declare an Event of Default and may avail itself of any of the remedies
specified in Section 8.2 of this Agreement.
Section 4.4 Certa4icate of Completaon. After notification by the Developer of completion
of construction of the Improvements, the HRA shall inspect the construction to determine whether
the Improvements have been completed in accordance with the Construction Plans and the terms of
this Agreement, including the date of the completion thereof. In the event that the HRA is satisfied
with the construction, the HRA shall furnish the Developer with a Certificate of Completion in the
form attached hereto as Exhibit C. Such certification by the HRA shall be a conclusive
determination of satisfaction and termination of the agreements and covenants in this Agreement
with respect to the obligation of the Developer to construct the Improvements.
The certification provided for in this Section 4.4 shall be in recordable form. If the HRA
shall refuse or fail to provide cei�tification in accordance with the provisions of this Section 4.4, the
7
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 Agreemeut necessaiy, in the opinion of the
HRA, for the Developer to take or perform in order to obtain such certification.
Section 4.5 Fail�re 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 occiured and the HRA may proceed with its remedies under Section 8.2.
ARB'ICLE V.
INSURANCE
Section 5.1 Insurance. The Developer will provide and maintain or cause to be provided
and maintained at all times during the process of constructing the Improvements and, from time to
time at the request of the HRA, furnish the HRA with proof of payment of premiums on:
(a) Builder's risk insurance, written on the so-called "Builder's Risk-- Completed Value
Basis," in an amount equal to 100% of the insurable value of the Improvements at the date of
completion, and with coverage available in non-reporting form on the so-called "all risk" form of
policy;
(b) Comprehensive general liability insurance (including operations, contingent liability,
operations of subcontractors, completed operations and contractual liability insurance) together with
an Owner's Contractor's Policy with limits against bodily injury and property damage of not less
than $1,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess
liability policy may be used); and
(c) Workers' compensation insurance, with statutory coverage.
The policies of insurailce required pursuant to clauses(a) and (b) above shall be in form and
content satisfactory to the HRA and shall be placed with financially sound and reputable insurers
licensed to transact business in Minnesota. The policy of insurance delivered pursuant to clause (a)
above shall contain an agreement of the insurer to give not less than thirty(30) days advance notice
to the HRA in the event of cancellation of such policy or change affecting the coverage thereunder.
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 financing is adequate
in amount to provide for the construction of the Improvements, the HRA shall notify the Developer
of its approval.
8
If the HRA rejects the evidence of fnancing as inadequate, the Developer shall have 30 days
or such additional period of time as the I�eveloper may reasonably require from the date of such
notification to submit evidence of finaucing satisfactory to the HRA. If the I�eveloper fails to
submit such evidence or fails to use due diligence in pursuing fivancing, the HRA may teiminate
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 tf�e Developer has provided the HRA with acceptable evidence of financing for
construction of the Improvements.
Seetion 6.2 L'nt�natataoa� IJ�on Enc�eaxeb���e� €�� Proa�e�ty Prior to the issuance of the
Certificate of Coinpletion, neither the Developer nor any successor in interest to the Property or any
part thereof shall engage in any financing or any other transaction creating any Mortgage or other
encumbrance or lien upon the Property, whether by express agreeinent or operation of law, or suffer
any encumbrance of lien to be made on or attached to the Property other than the liens or
encumbrances attached for the purposes of obtaining funds to the extent necessary for making the
Improvements without the prior written approval of the HRA. The HRA shall not approve any
Mortgage which does not contain terms which conform to the terms of this Article VI and Section
8.2 of this Agreement.
Seetion 6.3 Subordinatiota. In order to facilitate obtaining financing for the coilstruction of
the Improvements by the Developer, the HRA may, in its sole and exclusive discretion, agree to
rnodify this Agreement in the manner and to the extent it deems reasonable, upon request by the
financial institution and the Developer.
ARTICLE VII.
PI20HIBITIONS AGAINST ASSIGNIVIENT AND TRANS�ER
Section 7.1 Renresentataon as to Redevelo�nnent. The Developer represents and agrees
that its undertakings pursuant to the Agreement, are for the purpose of development of the Property
and not for speculation in land holding. The Developer further recognizes that, in view of the
importance of the Developinent 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 inta this Agreement, and, in so doing, is further willing to rely on the
representations and undertakings of the Developer for the faithful performance of all undertakings
and covenants agreed by the Developer to be performed.
Section 7.2 Prohibition Against Transfer of Pronertv and Assi�nment of A�reement.
For the reasons set out in Section 7.1 of this Agreement, the Developer represents and agrees that
prior to the issuance of the Certificate of Completion by the HRA:
(a) Except only by way of security for, and only for the purpose of obtaining financing
necessary to enable the Developer or any successor in interest to the Property, or any part thereof, to
perform its obligations with respect to the Development under this Agreement, and any other
9
purpose authorized by this Agreement, the I�eveloper, except as so authorized, has not made or
created, and that it will not make or create, or suffer to be made or created, any total or partial sale,
assigiu�ient, conveyance, or any trust in respect to this Agreeinent or the Property or any pat�t thereof
or any interest therein, or any contract or agreement to do any of the same, without the prior written
approval of the HRA; and
(b) The HRA shall be entitled to require, except as otherwise provided in this
Agreement, as conditions to any such approval under this Section 7.2 that:
(i) Any proposed transferee shall have the qualifications and financial responsibility, as
determined by the HRA, necessary and adequate to fulfill the obligations undertaken in this
Agreement by the Developer or, in the event the transfer is of or relates to part of the
Property, such obligations to the extent that they relate to such part,
(ii) any proposed transferee, by instruinent in writing satisfactory to the HRA and in form
recordable among the land records, shall for itself and its successor and assigns, and
specifically for the benefit of the HRA, have expressly assumed all of the obligations of the
Developer under this Agreement and agreed to be subject to such obligations, restrictions
and conditions or, in the event the transfer is of, or relates to part of the Property, such
obligations, conditions, and restrictions to the extent that they relate to such part; provided,
that the effect that any transferee of, or any other successor in interest whatsoever to, the
Property or any part thereof, shall, for whatever reason, not have assumed such obligations
or agree to do so, shall not, unless and only to the extent otherwise specifically provided in
the Agreement or agreed to in writing by the HRA, relieve or except such transferee or
successor from such obligations, conditions, or restrictions, or deprive or limit the HRA of
or with respect to any rights or remedies or controls with respect to the Property of the
construction of the Itnprovements; it being the intent of this Section 7.2, together with other
provisions of this Agreement, that to the fullest extent permitted by law and equity and
excepting only in the manner and to the extent specifically provided otherwise in the
Agreement no transfer of, or change with respect to, ownership in the Property or any par-t
thereof, or any interest therein, however• consummated or occurring, whether voluntary or
involuntary, shall operate, legally or practically, to deprive or limit the HRA, or any rights or
remedies or controls provided in or resulting from this Agreement with respect to the
Property and the construction of the Improveinents that the HRA would have had, had there
been no such transfer or 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 conh•ary, no such transfer or
approval by the HRA thereof shall be deemed to relieve the Developer from any of its obligations
with respect thereto. The sale of the Development to a Qualified Buyer shall not be deemed to be a
transfer within the meaning of this Section 7.2. .
10
Section 7.3 Arnrovals. Any approval required to be given by the HRt-1 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 v��hich approval is sought.
ARTICL�VIII.
EVENTS OF DEFAU�.T
Section 8.1 Events of Default Defined. The following shall be deemed �vents of Default
under this Agreement and the tertn shall mean, whenever it is used in this Agreement, unless the
context otherwise provides, any one or more of the following events:
(a) Failure by the Developer to pay when due the payments required to be paid or secured
under any provision of this Agreement;
(b) Subject to Section 9.7, failure by the De��eloper to complete the Iinprovements by
September l, 2016, absent any Unavoidable Delay;
(c) Failure by the Developer to observe and substantially perform any covenant, condition,
obligation or agreement on its part to be observed or performed hereunder, including the time for
stich performance;
(d) Failure by the Developer to sell at least 51% of the townhoine units to Qualified Buyers.
(e) If tlie Developer shall admit in writing its inability to pay its debts generally as they
become due, or shall file a petition in banluuptcy, or shall make an assignment for the benefit of its
creditors, or shall consent to the appointment of a receiver of itself or of the whole or any substantial
part of the Property;
(� If the Developer, on a petition in bankruptcy filed against it, be adjudicated as bankrupt,
or a court of competent jurisdiction shall enter an order or decree appointing, without the consent of
the Developer, a receiver of the Developer or of the whole or substantially all of its property, or
approve a petition filed against the Developer seeking reorganization or arrangement of the
Developer under the federal bankruptcy laws, and such adjudication, order or decree shall not be
vacated or set aside or stayed within 60 days from the date of entiy 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. Whene��er any Event of Default occurs, the HRA may,
in addition to any other remedies or rights given the I-�RA 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:
11
(a) suspend its performance under this Agreement until it receives assurances from the
Developer, deemed reasonably adequate by the HRA, that the Developer will cure its default and
continue its perfoiina�ice unde�•this Agreement;
(b) cancel or rescind this Agreement;
(c) withhold the Certificate of Completion; or
(d) take whatever action at law or in equity may appear necessary or desirable to the HRA to
collect any payments d�ae under this Agreement, or to enforce performance and observance of any
obligation, agreeinent, or covenant of th;e Developer under this Agreement; provided, however, that
any exercise by the HR4 of its rights or remedies hereunder shall always be subject ta and Iiniited
by, a��d shall atat defeat, render invalid or limit in any way (a) the lzen af atty Mortgage autl�orized
by this Agreement and (b)any rights or interest provided in this Agreement for the protection of the
Holders of a Mortgage; and provided fui�ther that sh�uld any Holder succeed by foreclosure of the
Mortgage or deed in lieu thereof to the Developer's interest in tlae Property, it sha�l,notwitl2standing
the foregoing, be obligated to perforin the fol�ovding obligations of the Developer only ta the extent
that the same have not therefore been performed by the Developer: Sectians 3.3 through 3.7;
Sections 4.1 through 4.5; Sections 5.1. Said Holder, upon foreclosa�re or taking of a deed in lieu,
shall have no obligations pursuant to this Agreement other than as specifically set forth in the
foregoing sentence.
Section 8.3 No Reanedv �xclusive No remedy herein confen•ed upon or reserved to the
HRA is intended to be exclusive of any othcr available remedy or remedies, but eacli and evety such
remedy shall be cumulative �nd shali be in addition tc� every other remedy given unde�• this
Agreement or now or hereafter existing at law nr in equity or by statute. No delay or omission to
exercise any right oa•power accruing upon any default shalt impair any such right or power or shall
be cor.strued t� �e a waiver thereof, but any such right and power may be exercised fi•om time to
time and as often as may be deemed expedient. In order to entitle the HRA or the Developez• to
exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notiee as
may be required in this Ai�ticle VIII.
Section 8.4 Na Additional Waiver Im lied b One V6�aiver. In the event of the
occurrence of any Event of Default by eithet� party, whicla Event of Default is thereafter waived by
the ather party, such waiver shall be lpznited ta the pat•ticula�• Event of Default so waived and shall
not be deemed to waive any other concurrent,previous or subsequent Event of Default.
ARTICL.E IX.
ADDITIONAL PItOVISIONS
Section 9.1 Contlict of Interests• Re resent�tives l�ot Individual[ Liabte. No HRA
officer who is authorized to take part in any manner in tnaking this Agreement in his op•her official
capacity sliall voluntarily have a personal financial interest iti this Agreemeilt or benefit financially
thei•e 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
12
which may become due to the Developer or successor or on any obligations under the terms of this
Agreement.
Section 9.2 1�1om-D'nscria�ninateon. The provisions of Miimesota Statutes Section 181.59,
which relate to civil rights and non-discrimination, and any affirmative action program of the City
shall be considered a part of this Agreement and binding on the Developer as though fully set forth
herein.
Section 9.3 Notece of Status and Conformance. At such time as all of the provisions of
this Agreement have been fully performed by the Developer, the HRA, upon not less than ten days
prior written notice by the Developer, agrees to execute,acknowledge and deliver, without charge to
the Developer or to any person designated by the Developer, a statement in writing in recoi•dable
form certifying the extent to which this Agreement has been performed and the obligations
hereunder satisfied.
Section 9.4 Notices and Deixeands. Except as otheitivise expressly provided in this
Agreement, a notice, demand or other communication under this Agreement by either party to the
other shall be sufficiently given or delivered if it is sent by mail, postage prepared, return receipt
requested or delivered personally:
(a} As to the HRA:
Richfield HRA
Executive Director
_ 6700 Portland Avenue South
Richfield, MN 55423
(b) As to the Developer:
Carolyn Olson/Eden Spencer
Greater Metropolitan Housing Corporation
15 South 5`�' 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 Merged With Deed. None of the provisions of this Agreeinent
is intended to or shall be merged by reason of any deed transferring any interest in the Property and
any such deed shall not be deemed to affect or impair the provisions and covenants of this
Agreement.
Section 9.6. Counternarts. This Agreement may be simultaneously executed in any
number of counterparts, all of which shall constitute one and the same instrument.
Section 9.7. Extensions. Any extension to the Closing Date and/or extension of the
completion date of the Improvements set forth in Section 4.3 that exceeds 6 months from the date agreed
13
to in S�cti�n 3.4 and 4.3, res��ectively;must be appro�{ed b}�the I°IiZA Baard. HRA staff is autfiorized to
e�:tend the Closing Date to a date less than 6 months from the Closing Date agreed to in Section 3.4 and
extend the completion date of the Improveinents to a date less than 6 months from the coinpletion date
set forth in Section 4.3.
14
IN WITNESS WI�EREOF, the HRA has eaused 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
Agt•eement to be duly executed as of the day and year fist above written.
THE HOUSING AND REDEVELOPMENT
AUTHORITY IN AND FOR THE CITY OF
RICHFIELD,MINNESOTA
By
Its Chairperson
By
Its Executive Director
STATE OF MINNESOTA )
) SS
COUNTY OF )
The foregoing instruinent was acknowledged before me this day of
, 2014, by , the Chairperson of the Housing and
Redevelopment Authority in and for the City of Richfield, Minnesota(HRA), a public body
corporate and politic under the laws of Miiuiesota, on behalf of the HRA.
Notary Public
S'TA'TE OF MINNESOTA )
) SS
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
, 2014, 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.
Notary Public
- - THE GREATER 1�IETROPOLITAN HOUSING CORPORATION
By:
Its:
STATE OF MINNESOTA )
) SS
COUNTY OF �
The foregoing instrument was acknowledged before me this day of
, 2014, by the
of The Greater Metropolitan��ousing 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 for the City
of Richfield, a public body corporate and politic under the la«�s 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, described as follows:
That part of the East 3/4 of the Southeast Quarter of the Southeast Quarter•(SE 1/4 of SE 1/4) of
Section Thii�ty-two (32), Township Twenty-eight (28), Range Twenty-four(24), described as
cotnmencing at the noi�thwest 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'/4 of SE '/4 of the SE '/4 258 feet; thence West parallel with the Noi�th line of
said SE '/4 of the SE '/4 170 feet to the West line of said East '/4 of the SE '/4 of the SE '/4;
thence North along said West line of East 3/4 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.
This deed is subject to the terms and provisions of that certain Contract for Development between
Gr•antor and C'�rantee, dated , 20_ (the "Contract"), recorded ,
20_, in the office of the Hemlepin County Recorder as Document No.
together with all hereditaments and appurtenances.
Check here if part or all of the land is Registered(Torrens) O
This deed is subject to a restriction that the Grantee must sell at least 51% of the to���nhome units
constructed on the propert}� to individuals or families with income that does not exceed 80% of the
1'win 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 and provide �roof of
income for each Qualified Buyer prior to a sale of a townhome unit.
Upon the sale of at least 51% of the to«�nhome units on the ProperYy to Qualified Buyers, the
Grantor will supply the Grantee, or the buyers of such units, with a document in suitable forin
releasing and forever discharging the resh•ictions contained herein. The Grantor shall have no
responsibility to record or pay the cost of r•ecording for the release.
❑ The Seller certifies that the Seller Housing and Redevelopment Authorit�� in and
does not know of any welis on the for the City of Richfield
described reai property.
❑ A well disclosure certificate By
accompanies this document or has Its Chairperson
been electronically filed. (If
electronically filed, insert WDC gy
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
STATE OF MINNESOTA
_ _
} ss.
COUNTY OF HENNEPIN
The foregoing was acknowledged before rne this day of , 20_, by Suzanne
�Sandahl, the Chairperson of the Housing and Redevelopment Authority in and for the City of
Richfield, a public body corporate and politic under the laws of Minnesota, on behalf of the
corporation, Grantor.
NOTARY STAMP SIGNATURE Of PGRSON TAKING ACKNOWLEDGMENT
STATE OF MINNESOTA
} ss.
COUNTY OF HENNEPIN
The foregoing was acicnowledged 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 corpoi•ate and politic under the laws of the State of.Minnesota, on
behalf of the corporation, Grantor.
NOTARY STAMP SIGNATURG OP PERSON TAKING ACKNOWLEUGMENT
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 701
200 South Sixth Street Minneapolis, MN 55402
Minneapolis, MN 55402
(612) 337-9300
B-3
�XHIBIT C
FORM OF C�RTIFICATE OF COMPLETION
The utidersigned hereby certif es that _____ , has fiilly and
cotnpletely complied wiih its obligations utldej• Article 1V of that document entitled ``Contract for
Develo�xnent", between the Housing and Rede��elopmeni Authority in and for the City of Richfield,
Minnesota and d�ted ____�_________ , filed
_`_ _ as Docuinent No. wiih respect to the
construction of the approved construction plans at __�_____ , legally described
as aud is released and forever discharged fi•om its obligations to
construct under such above-referenced Article.
llATLD:
TIIL IIOUSING AND RED�VELOPM�NT AUTHORITY IN AND
FOR'THE CITY RICHI�IELD
�S'_— � —�
Its Chairperson
BS� — - --
Its Executive Director
STATE Or MINN�SOTA )
)SS
COUNTY OF HENNEPIN )
The foregoiiig instrument was ackno«7ledged before me this___day of___`^ _,
20_, by _ _ � the Chairperson of the I��ousing and
Redevelopment Authority in aiid for the Ciiy of Richf eld, a public body corporate and politic under
the la���s of the State of Minuesota on behalf of the public body cor•porate and politic.
Notary Pul�lic ^ ^ �
STATI; OF A�INNF;SO'I'A )
) SS
COUN'I'Y OI�`_ _----^)
`I'he foregoin� instrument t��as acicno���ledged before me ihis_^`___day of
_______ __ _._, 20_, by Steven L.. Devich, the Executive Direcior of tlie I-Iousin� and
Redevelopment Authority in and for the City of Richfield, a pttblic body corporate and politic under
the laws of Minuesota, on behalf of the public body corporate and politic.
GI
Notary Puliiic v� � �-----
'I'his iusirument ���as drafted by:
Richfield Housing and Rede��elo�nneut Authorily
G700 Por•tlanci Ave S
Richfield, MN 55423
C-2
EXHIBIT I?
PRO FORMA FOR AFFORDABLE HOUSING PROJECT
C-1
11'-6" 13'-1° 12'-1" 11'-2°
o v �t
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�
KITCHEN
o O � o a
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F,•. ..
DINING
o a, 20'-0" 12'-2" o a,
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v .a.
FAMILY ROOM
`�' 2 CAR GARAGE LIVING ROOM
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17'-2"
39'-8"
39'-8"
Optional Finished Basement
�� 4 BEDROOM BASEMENT PLAN- FRONT 2 CAR GARAGE � 2� BEDROOM FIRST FLOOR PLAN - FRONT 2 CAR GARAGE
0'-1/8"=1'-0" 0'-1/8"-1�_�"
RICHFIELD FLOOR PLANS
GREATER METROPOLITAN HOUSING CORPORATION CERMAK RHOADES ARCHITECTS
10.14.2014
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FARM PROPERTY
2517 76th St. West, Richfield, Minnesota CERMAK RHOADES ARCHITECTS
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Photo of 2517 West 76t" Street
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AGENDA ITEM#: 5
REPORT#: 11
STAFF REPOR't
�+► � ' f' HOUSING AND REDEVELOPMENT
AUTHORITY 1VIEETING
MARCH 16, 2015
REPORT PREPARED BY: ��N BARTON,ASSISTANT CONIMUNITY
DEVELOPMENT DIlZECTOR
NAMC•,TIT�E
REPORT PRESENTER: ��N BARTON, ASSISTANT COMMUNITY
DEVELOPMENT DIRECTOR
N.9,yc,TIrL�
v�■ ._�_°.�
DEPARTMENT DIRECTOR REVIEW: .�
y
SIGN URE
REVIEWED BY EXECUTNE DIRECTOR: `
ITEM FOR HRA CONSIDERATION:
Consideration of an InterFund Loan for advance of property-acquisition costs in the Cedar
Avenue Tax Increment Financin District.
I. RECOMMENDED ACTION:
By Motion: Approve a resolution authorizing an Interfund Loan for
the advance of property-acquisition costs in the Cedar Avenue Tax
Increment Financing District.
II. EXECUTIVE SUMMARY
The Cedar Point Housing Area (bounded by Richfield Parkway to the east, 16th
Avenue to the west, 63rd Street to the north, and 65th Street to the south) was
established as a designated redevelopment area to provide a transition between the
commercial uses in the Cedar Point Commons and the single-family residential
area. This two-block redevelopment area was previously occupied by 29 single-
family residential properties. Fifteen of the properties fronting 17th Avenue/Richfield
Parkway were acquired by the City and demolished for the construction of Richfield
Parkway. Thirteen single-family residential properties facing 16th Avenue remain to
be acquired and demolished.
In an effort to facilitate the redevelopment, the Housing and Redevelopment
Authority (HRA) desires to acquire various remaining properties in the project area.
031615 Interfund Loan-Cedar Avenue Property Acqxxx
In September 2006 the City Council and the HRA adopted resolutions approving the
establishment of the Cedar Avenue Tax Increment Financing District, which
encompasses the Cedar Point Housing Area. Acquisition costs are an eligible
expense within the TIF District.
Staff is recommending that the HRA establish an InterFund Loan for an amount not
to exceed $565,000 to authorize up-front payment for acquisition and other qualified
costs. The source of funds will be the HRA's Development Fund. Upon
redevelopment of the site, tax increment generated by such a development could be
used to reimburse this fund.
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• The City and the HRA established the Cedar Avenue Tax Increment
Financing District (a redevelopment district) to facilitate the
redevelopment of the Cedar Corridor.
• The project area was previously occupied by 29 single-family
residential homes. Sixteen properties have been acquired; 15 of
which were demolished for the construction of Richfield Parkway.
B. PoLICY
• The HRA is authorized to advance or ioan money from the General
Fund or any other fund from which such advances may be legally
authorized, in order to finance the qualified costs.
C, CRITICAL TIMING ISSUES
• Two properties in the redevelopment area are currently available for
purchase.
D. FINANCIAL
• The source of funds for the Interfund Loan will be the HRA's
Development Fund.
• Reimbursement will be made from tax increment generated by the
Cedar Avenue Tax Increment Financing District.
• The interest rate for repayment will be 4%, which is the maximum rate
allowed under Minnesota Statute.
E. LEGAL
• Under Section 469.178, Subdivision 7 of the TIF Act, the Authority is
authorized to advance or loan money from any fund from which such
advances may be legally made (each such advance being referred to
as an "interfund loan") in order to finance expenditures that are eligible
to be paid with tax increments under the TIF Act.
. The resolution was prepared by HRA legal counsel.
N. ALTERNATIVE RECOMMENDATION(S�
• Do not approve the Interfund Loan.
• Approve the Interfund Loan, identifying an alternative source of funds.
V. ATTACHMENTS
• Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• None
HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF RICHFIELD,MINNESOTA
RESOLUTION NO.
RESOLUTION AUTHORIZING INTERFUND LOAN FOR ADVANCE OF CERTAIN COSTS IN
CONNECTION WITH PROPERTY LOCATED WITHIN CEDAR AVENUE TAX INCREMENT
FINANCING DISTRICT
BE IT RESOLVED By the Board of Commissioners of the Housing and Redevelopment Authority in
and for the City of Richfield,Minnesota(the"Authority")as follows:
Section 1. Back r�; ound.
1A1. Pursuant to Minnesota Statutes, Section 469.174 through 469.1794, as amended (the "TIF
Act"), and Laws of Minnesota for 2005, Chapter 152, Article 2, Section 25 (the "Special Law"), the City of
Richfield, Minnesota (the "City") and the Authority established the Cedar Avenue Tax Increment Financing
District(a redevelopment district) (the "TIF District")within the Richfield Redevelopment Project Area(the
"Redevelopment Project"),which is administered by the Authority.
1.02. In accordance with the Special Law, activities undertaken in the TIF District(including
acquisition of property) are deemed to be the costs of correcting conditions that allow the designation of
redevelopment districts pursuant to Minnesota Statutes, section 469.174, subdivision 10 of the TIF Act,
therefore, no further findings are required to meet the blight standard set forth in Section 469.174,
subdivision 10 of the TIF Act.
1.03. Under Section 469.178, subdivision 7 of the TIF Act,the Authority is authorized to advance
or loan money from any fund from which such advances may be legally made (each such advance being
referred to as an "interfund loan") in order to finance expenditures that are eligible to be paid with tax
increments under the TIF Act.
1.04. The Authority has determined to acquire various properties within the TIF District for
redevelopment purposes. The total cost of the acquisitions is expected to be$565,000.
1.05. In order to finance the acquisition of property, the Authority has determined to use funds
available in its Development Fund in the amount of $565,000 through an Interfund Loan (the "Interfund
Loan") in accordance with the terms hereo£ The Interfund Loan is expected to be drawn down as properties
are purchased over time.
1.06. The Authority intends to use tax increment revenues derived from the TIF District to repay
all or a portion of the Interfund Loan.
Section 2. Terms of Interfund Loan.
2.01. The Interfund Loan shall be made from the Development Fund, or any other fund designated
by the Authority,to the Authority's TIF Fund for the TIF District.
2.02. The Interfund Loan is repayable solely from and to the extent that Available Tax Increment
is available. "Available Tax Increment" means, on each Payment Date (as defined herein), all of the tax
increment generated in the preceding six (6) months with respect to the property within the TIF District and
remitted to the Authority by Hennepin County, all in accordance with the TIF Act. Payments on the Interfund
Loan are on parity with any other outstanding or future interfund loans secured in whole or in part with Available
Tax Increment.
2.03. Provided that there is Available Tax Increment to repay the Interfund Loan to the City,principal
and interest("Payments")on the Interfund Loan shall be paid semiannually on February 1 and August 1 (each a
"Payment Date"), commencing on the first Payment Date after the advance of the Interfund Loan. Payments
shall continue until the earlier of(a) the date the principal and accrued interest of the Interfund Loan is paid in
full,or(b)the date of last receipt of tax increment from the TIF District. Payments on the Interfund Loan will be
made in the amount and only to the extent of Available Tax Increment. Payments shall be applied first to
accrued interest, and then to unpaid principal. Interest accruing from the date of each expenditure to the first
Payment Date will be compoundad semiannually on February 1 and August 1 of each year and added to
principal,unless otherwise specified by the Interfund Loan form.
2.04. The Interfund Loan shall bear interest at the Authority's then current internal rate of return
on the principal amount advanced, accruing from the date of each initial expenditure; provided, however that
the interest rate shall not exceed the greater of the interest rates specified under Minnesota Statutes,
Section 270C.40 or Minnesota Statutes, Section 549.09 as of the date the advance is authorized. The
maximum interest rate in effect for calendar year 2015 is 4.0%.
2.05. The principal sum and all accrued interest payable under this resolution is prepayable in
whole or in part at any time by the Authority without premium or penalty.
2.06. This resolution is evidence of an internal borrowing by the Authority in accordance with
Section 469.178, subdivision 7 of the TIF Act, and is a limited obligation payable from Available Tax
Increment pledged to the payment hereof under this resolution or any other sources of funds the Authority
may use to pay the Payments. The Interfund Loan shall not be deemed to constitute a general obligation of
the State of Minnesota or any political subdivision thereof, including, without limitation, the Authority and
the City.
2.07. The Authority, with the cooperation of the City, may from time to time amend the terms of
this resolution to the extent permitted by law, including without limitation amendment to the payment
schedule and the interest rate; provided that the interest rate may not be increased above the maximum
specified in Section 469.178. subdivision 7 of the TIF Act.
Section 3. Interfund Loans Authorized.
3.01. The Interfund Loan with the terms set forth in Section 2 hereof is hereby approved.
3.02. Authority staff and officials are hereby authorized and directed to execute any documents
and take any other actions necessary to carry out the intent of this resolution.
Section 4. Effective Date. This resolution is effective upon approval.
Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota
this 16th day of March, 2015.
Mary B. Supple, Chair
ATTEST:
Doris Rubenstein, Secretary
AGENDA ITEM#: 6
REPORT#: 12
STAFF REPORT
�r � r '' HOUSING AND REDEVELOPMENT
AUTHORITY MEETING
MaRCx 16, 2015
REPORT PREPARED BY: JULIE URBAN, HOUSING SPECIALIST
NAME,TITLE
REPORT PRESENTER: ��N BARTON,ASSISTANT COMMUNITY
DEVELOPME�TT DIRECTOR
f ' NAME,TITLE
DEPARTMENT DIIZECTOR REVIEW: � f" 4 ��
j,,
SlGNA' �
REVIEWED BY EXECUTNE DIRECTOR:
i
ITEM FOR HRA CONSIDERATION:
Consideration of a resolution authorizing the purchase of real property at 6333 and 6401 16th
Avenue.
I. RECOMMENDED ACTION:
By Motion: Approve a resolution authorizing the purchase of real
pro ert at 6333 and 6401 16th Avenue.
II. EXECUTIVE SUMMARY
The property at 6333 16th Avenue was listed for sale for $189,900 through the
Multiple Listing Service on February 19, 2015. An appraisal of the property values
it at $179,000. The seller has indicated a willingness to sell the property to the
Housing and Redevelopment Authority (HRA) for $184,300.
The owner of 6401 16th Avenue has approached the HRA about purchasing his
property. The property appraised at $185,000 in the fall of 2014, and an update of
the appraisal values it at $180,000. The property owner has verbally agreed to sell
the property to the HRA for $185,000.
Both properties are located in the Cedar Avenue Corridor Redevelopment Area, as
identified in 2004, and are prime candidates for acquisition to facilitate the eventual
redevelopment of the Cedar Point Housing Redevelopment Area (the 6300 and
031615 Authorization to purchase 6333 and 6401 16th.docxxxx
6400 blocks of 16th Avenue and Richfield Parkway). The area is currently occupied
by single-family houses, but is zoned MR-3, High Density Residential.
Funding is available through the HRA's Development Fund and would be
reimbursed through TIF, assuming prior approval of an interfund loan by the HRA.
III. BASIS OF RECOMMENDATION
A. BACKGROUND
• Both properties are located within the Cedar Point II Housing
redevelopment area. The HRA has been actively seeking
redevelopment of the area to multi-family housing for several years.
Over the past three years, the HRA and the City have acquired 15
properties in the area in anticipation of redevelopment.
• The owner of 6401 16th Avenue approached the HRA in the fall of
2014 about purchasing his property. At the time, the property was
appraised at $185,000; however, funds were not available for the
purchase at that time.
B, PoLICY
• The 2009 Richfield Comprehensive Plan Housing Goals and Policies
direct the policy work related to Land Use and Community Facilities.
Specifically, this acquisition is supported and encouraged by the
following goals and policies, as stated in the 2009 Richfield
Comprehensive Plan.
o Goal: Beyond the City Center, develop identifiable
nodes, corridors and gateways throughout the
community.
■ Facilitate an intense mixed pattern of regional and
community-oriented land uses along regional
corridor routes including I-494 and Cedar Avenue.
■ Encourage a mix of uses that serve a market in
and around Richfield in community commercial
nodes.
■ Create meeting places in multi-unit complexes to
allow for interaction between its residents and
between its residents and surrounding neighbors.
■ Improve gateways to create a visual means of
welcoming people to Richfield.
• In 2004 the City completed a redevelopment master plan for the
Cedar Avenue Corridor area. Much of the area in the master plan,
including this property, is impacted by the noise generated from the
new north/south runway built at the adjacent airport.
C. CRITICAL TIMING ISSUES
• The property at 6333 16th Avenue is currently on the market.
• The owner of 6401 16th Avenue has approached the HRA with the
interest of selling.
• Multiple developers have approached staff with proposals for
redevelopment of the Cedar Point II area. Assembling property for
redevelopment will be more difficult and expensive if the properties
are sold to other parties before a developer has been chosen and is in
a position to acquire properties.
• Acquisition of the properties will be scheduled for a Finding of
Consistency review with the Planning Commission.
D. FINANCIAL
• Funding is available through the HRA's Development Account.
• Reimbursement of these funds through TIF via an interFund loan could
occur, assuming prior approval of the interFund loan by the HRA.
• The properties do not qualify as substandard; therefore, they are not
eligible to be purchased with the Housing and Redevelopment Fund.
• Both purchases would be voluntary, so the owners are not eligible for
relocation assistance.
E. LEGAL
• The HRA Attorney has drafted and will approve the final purchase
agreements.
IV. ALTERNATIVE RECOMMENDATION(S�
• Do not authorize the purchase of 6401 and 6333 16th Avenue.
V. ATTACHMENTS
• Resolution
VI. PRINCIPAL PARTIES EXPECTED AT MEETING
• NA
HRA RESOLUTION NO.
RESOLUTION AUTHORIZING EXECUTIVE DIRECTOR AND CHAIRPERSON TO
NEGOTIATE PURCHASE OF REAL PROPERTY AT 6333 16TH AVENUE AND
6401 16TH AVENUE
WHEREAS, the Housing and Redevelopment Authority (HRA) in and for the City of
Richfield, Minnesota is supportive of the furthering the goals of the Cedar Avenue Corridor
Redevelopment Area;
WHEREAS, the City of Richfield, Minnesota desires to purchase certain real
properties pursuant to and in furtherance of the Cedar Avenue Corridor Redevelopment
Area, said properties being described as:
6333 16th Avenue South
Lot 6, Block 1, Iversons 2nd Addition, Hennepin County (Abstract)
AND
6401 16th Avenue South
Lot 1, Block 2, Iversons 2nd Addition, Hennepin County (Abstract)
WHEREAS, the HRA proposes to hold the property for as part of the future
redevelopment in the Cedar Avenue Corridor area; and
WHEREAS, HRA Development Funds are available for acquisition and removal
purposes; and
WHEREAS, the HRA is authorized by Minnesota Statutes Section 469.012 to
acquire real property within its area of operation;
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment
Authority in and for the City of Richfield, Minnesota:
1. The purchase price for the property identified as 6333 16th Avenue is
approved in an amount not to exceed $190,000 (purchase price plus
closing costs).
2. The purchase price for the property identified as 6401 16th Avenue is
approved in an amount not to exceed $190,000 (purchase price plus
closing costs).
3. The Chairperson and Executive Director are authorized to execute the
Purchase Agreements and to take other actions necessary to purchase
the properties for the amoun� set forth in this resolution.
Adopted by the Housing and Redevelopment Authority in and for the City of
Richfield, Minnesota this 16th day of March, 2015.
Mary B. Supple, Chair
ATTEST:
Doris Rubenstein, Secretary