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01-18-05 AgendaCITY OF RICHFIELD, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY TUESDAY, JANUARY 18, 2005 RICHFIELD CITY HALL 6700 PORTLAND AVENUE COUNCIL CHAMBERS 7 P.M. AGENDA Call to order 1. Consideration of appointment of HRA officers for 2005 Staff Report No. 1 Notes: 2. Approval of minutes of Regular HRA Meeting of November 15, 2004 Notes: 3. HRA approval of agenda 4. Consent Calendar contains several separate items which are acted upon by the HRA in one motion. Once the Consent Calendar has been approved, the individual items and recommended actions have also been approved. No further HRA action is necessary. However, any HRA Commissioner may request that an item be removed from the Consent Calendar and placed on the regular agenda for HRA discussion and action. All items listed on the Consent Calendar are recommended for approval. A. Consideration of approval of resolutions designating official depositories of HRA for 2005 including collateral S.R. No. 2 B. Consideration of approval of resolution designating Richfield Sun-Current as official newspaper and Star Tribune as second official newspaper of HRA for 2005 S.R. No. 3 C. Consideration of approval of designating Steven L. Devich, Administrative Services Director, as Acting Executive Director of HRA for 2005 and directing Executive Director to designate Community Development Director as Acting Executive Director in the event both Executive Director and Administrative Services Director are absent from City S.R. No. 4 D. Consideration of approval of ratifying consent for filing CIC Plat for Common Interest _ Community No. 1416, Declaration for Common Interest Community No. 1416, and Declaration of Easements (parking and access) S.R. No. 5 E. Consideration of approval of consent to register title to certain real estate related to Kensington Park redevelopment project S.R. No. 6 Notes: 5. Consideration of cooperative agreement for Cedar Point Project with Hennepin County Staff Report No. 7 Notes: 6. Consideration of rescheduling February 22, 2005 Regular HRA meeting Staff Report No. 8 Notes: 7. Executive Director report 8. 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 Administrative Services Director at 612-861-9702. AGENDA ITEM # REPORT # STAFF REPORT 6 8 ~ HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 18, 2U~5 REPORT PREPARED BY: CHERYL KRUMHOLZ, ADMIN. ASST. NAME, TITLE STEVEN L. DEVICH, ACTING EXECUTIVE REPORT PRESENTER: DI TOR AME, TLE REVIEWED BY EXECUTIVE DIRECTOR: 1 ITEM FOR HRA CONSIDERATION: Consideration of rescheduling the February 2005 HRA meeting. I. RECOMMENDED ACTION: B Motion: Reschedule the Februa 22, 2005 Re ular HRA meetin . II BACKGROUND I The HRA regularly meets on the third Monday of each month. In February, the third Monday is the Presidents' Day holiday (February 21) so the HRA meeting moves to the following day, which is Tuesday, February 22. However, this is the fourth Tuesday of the month, which is when the City Council conducts their second regular monthly meeting. A Special Concurrent City Council/HRA/Planning Commission Worksession is scheduled for Tuesday, February 22 prior to the Regular Council meeting. Due to the conflict with the City Council, the HRA should select a date to conduct their February meeting. III. BASIS OF RECOMMENDATION ~ A. POLICY The HRA regularly meets on the third Monday of each month. 0118reschedule B, CRITICAL ISSUES The HRA has business to conduct in February that should not be delayed to their March meeting. C. FINANCIAL None. D. LEGAL None. IV ALTERNATIVE RECOMMENDATION~S~ The HRA may choose to cancel their February meeting, however, there is business to conduct that should not be delayed to their March meeting. V ATTACHMENTS None. VI. PRINCIPAL PARTIES EXPECTED AT MEETING None. AGENDA ITEM # 5 REPORT # 7 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 18, 2005 REPORT PREPARED BY: JOHN STARK, ASST. DIRECTOR OF COMMUNITY DEVELOPMENT NAME, TITLE REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: JOHN STARK, COMMUNITY DEVELOPMENT ASSISTANT DIRECTOR NAME, TITLE D% SIGNA REVIEWED BY ACTING EXECUTIVE DIIZECTOR: ITEM FOR HRA CONSIDERATION: Consideration of a Cooperative Agreement for Cedar Point Project with Hennepin County. I. RECOMMENDED ACTION: By Motion: Approve a Cooperative Agreement for Cedar Point Pro'ect with Henne in Count . II BACKGROUND I The Cedar Point area has been identified as an area in which redevelopment is necessary. Structures. need to be removed which cannot tolerate the negative effects of low frequency noise. This noise will become a problem when the new "north-south" runway at the Minneapolis St. Paul International Airport becomes operational (scheduled for year's end). This area is bounded by Trunk Highway 62 ("the Crosstown") on the north, by 66th Street on the south, by 17th Avenue on the west and by Trunk Highway 77 on the east. In 2004, the Comprehensive Plan designation for this area was amended to "Regional Retail/Office" to reflect the recommendations contained in the Cedar Corridor Redevelopment Concept Master Plan. The City of Richfield, in cooperative efforts with the Metropolitan Airports Commission (MAC) and the State of Minnesota, have already purchased and cleared many properties in the area. There are 33 single-family homes, two apartment buildings and two businesses remaining in the area. The estimated cost 011805HennCo to purchase these remaining properties, plus the cost for purchasing the cleared land from the City, has been estimated at $14 to $16 million. From discussions with the Housing and Redevelopment Authority's (HRA) financial analysts (Ehlers and Associates) and with developers, it has been concluded that a regional retail development would require approximately $3.5 million in public assistance in order to be feasible. The Richfield City Council will be considering a provision of tax abatement funds in the approximate present value of $1.5 million as part of that public assistance. Through dialog with Hennepin County Board Chairman Randy Johnson and Hennepin County staff, HRA staff has requested $2 million in grant funds from the County's Multijurisdictional Project Fund (MJP). At their December 14, 2004 meeting, the Hennepin County Board of Commissioners approved a budget that included $2 million in MJP funds as public assistance in the Cedar Point area. The provision of these funds would be governed by the terms of a Cooperative Agreement amongst the Hennepin County Board, the Hennepin County HRA, the City of Richfield and the Richfield HRA. The proposed Cooperative Agreement (attached) would provide the City with $2 million in grant funds on a reimbursable basis. As stated in Article III of the Agreement, these funds could be used for appraisal costs, real estate purchase costs, demolition costs, environmental investigation/remediation costs and relocation benefits. The proposed Agreement requires that the HRA enter into a binding development agreement and that the development proposed in such an agreement be completed within five years. III. BASIS OF RECOMMENDATION ~ A. POLICY The Cedar Point Area is located within the "87db Low Frequency Noise Impact Area." It is the stated policy of the City of Richfield to remove existing residential properties from the "87db Low Frequency Noise Impact Area" in order to replace them with structures that can withstand the negative impacts of low frequency noise. The Cedar Point portion of the "87db Low Frequency Noise Impact Area" has been identified for redevelopment as regional retail development. It has been determined that, in order for regional retail development to be feasible at this location, approximately $3.5 million in public assistance is necessary. Hennepin County has designated $2 million in Multijurisdictional Project Funds for use in assisting redevelopment of this area. The Richfield HRA and City Council must be partied to a Cooperative Agreement-with Hennepin County in order to receive these funds. B. CRITICAL ISSUES The City Council will be considering approval of the proposed Cooperative Agreement at their January 25, 2005 meeting. C. FnvaNCIAL If the area were not developed within five years, the City of Richfield and/or the Richfield HRA would have to refund any monies granted under the agreement to the City by Hennepin County. D. LEGAL HRA legal counsel, in cooperation with the Hennepin County Attorney's Office drafted the proposed Agreement. IV ALTERNATIVE RECOMMENDATION(S) Do not approve the proposed Agreement. Suggest modifications to the proposed Agreement, which mayor may not be to the satisfaction of the other involved parties. Continue consideration of the proposed Agreement in order to seek more information about the terms of the Agreement. V ATTACHMENTS Cooperative Agreement for the Cedar Point Project. VI. PRINCIPAL PARTIES EXPECTED AT MEETING HRA legal counsel. Hennepin County Contract No. A050010 COOPERATIVE AGREEMENT FOR CEDAR-POINT PROJECT This Cooperative Agreement, hereinafter called the "Agreement", made and entered into as of the day of , 2005, by and between the County of Hennepin, a Minnesota public body corporate and politic, hereinafter called the "County"; the Hennepin County Housing and Redevelopment Authority, a Minnesota public body corporate and politic, hereinafter called the "HCHRA"; .and the City of Richfield, a Minnesota municipal corporation, hereinafter called the "City"; .and the Housing and Redevelopment Authority in and for the "Autho~t Richfield, a Minnesota public body corporate and politic, hereinafter called Y WHEREAS, the Authority is undertaking a redevelopment project called Cedar Point, hereinafter called the "Proje ecember 15, 20045 attached hereto as Exhibit A; Redevelopment Area Proposal dated D and WHEREAS, the Project is included within The Richfield Redevelopment Project Area, duly established by Resolution No. 8030, adopted on June 14, 1993 (the "Project Area"); and WHEREAS, the City will be providing financial assistance to the Project; and WHEREAS, the Project fits within the goals of amulti-jurisdictional reinvestment program authorized under Minnesota Statutes Section 3836.79 by including corridor planning, acquisition of property, development of commercial projects and job creation; and WHEREAS, the Board of Commissioners of the County has approved the Project, and the multi-jurisdictional reinvestment program (the "Program"), and authorized the County's participation in the Project; and WHEREAS, the Authority and the HCHRA have the tionsrl469 001 to 469.04 7 participate in the Project pursuant to Minnesota Statutes Sec 469.1812 to 469.1815 and other applicable law; and WHEREAS, the County is autho nd 469.041tandtotherapglicable lawcand rsuant to Minnesota Statutes, Sections 3836.79 a WHEREAS, Minnesota Statutes, Sections 3836.79 and 471.59 authorize the parties hereto to enter into this Agreement. NOW, THEREFORE, in consideration of the terms contained herein, it is agreed by and between the parties that they enter into this Agreement in order to provide for the participation of the County in the Project in cooperation with the City and the Authority and the HCHRA. 1 011805Hennco ARTICLE I Purpose The purpose of this Agreement is to provide for the participation of the County in the Project in accordance with the goals of the Program. ARTICLE II Source of Funds The County will contribute $2,000,000.00 on a reimbursement basis to the City in support of the Project upon receipt of proper verification from the City that eligible expenses have been incurred in accordance with the terms of Article III below. ARTICLE III Use of Funds The City agrees to use the funds provided by the County for qualifying costs incurred for the Project, which are limited to appraisal costs, real estate purchase costs, demolition costs, environmental investigation/remediation costs, and relocation benefits. These funds will be furnished by the City to the Authority in reimbursement of such acquisition costs. County funds may only be used for capital costs directly associated with the Project, and shall not be used for any costs associated with any construction outside the boundaries of the site shown on Exhibit A. The County will have no further obligation to provide such funds to City for qualifying costs for which the City fails to submit proper invoices within six years of the date of this Agreement, unless the parties agree to an extension of this Agreement by amendment. ARTICLE IV Administration The commitment of the County to continue to contribute funds to the Project is contingent upon the City/Authority certifying within five years of the date of this Agreement that the portion of the Project located on lands acquired with the Program funds has reached completion. The City/Authority shall provide a Declaration in form similar to that attached hereto as Exhibit B certifying to the County that a Certificate of Completion has been issued to the developer of the Prm funds hascbeen comp etedrtion of the Project located on lands purchased by the Progra The City shall submit invoices and supporting documentation in the manner specified by the County and to the satisfaction of the County. In the event that the City abandons the Project or fails to meet the time requirement contained above, the City shall, upon written notice by the County, immediately repay any funds previously paid the City under this Agreement, together with reasonable attorney fees and suit costs incurred by the County in any action brought to collect such repayment. Interest on the repayment amount will accrue at the rate of 5% per annum on the unpaid portion from the date of the written notice until paid. In order to accomplish the purposes of this Agreement, Patrick Connoy, Hennepin 2 County Community Works & Transit, will manage this Agreement on behalf of the HCHRA and serve as liaison between the HCHRA, the County, the City and the Authority. During the term of this Agreement the City shall submit quarterly updates as to the progress of the Project to Patrick Connoy or his successor or designee. The City will also supply Patrick Connoy with copies of all Development Agreements relating to the Project Area. ARTICLE V Term This Agreement shall be effective upon execution of all parties to this Agreement, and shall remain in effect until December 31, 2010, or such earlier time as this Agreement is terminated by mutual agreement of the parties. ARTICLE VI Data Privacy The parties agree to abide by all applicable State and Federal Laws and regulations concerning the handling and disclosure of private and confidential information concerning individuals and/or data including but not limited to information made non-public by such laws or regulations. ARTICLE VII Records -Availability The City and the Authority agree that the County, the State Auditor, the Legislative Auditor, or any of their duly-authorized representatives at any time during normal business hours, and as often as they may reasonably deem necessary, shall have access to and the right to examine, audit, excerpt, and transcribe any books, documents, papers, records, etc., which are pertinent to the accounting practices and procedures of City and Authority and involve transactions relating to this Agreement. Such materials shall be maintained and such access and rights shall be in force and effect during the term of this Agreement and for six (6) years after its termination. ARTICLE VIII Merger and Modification i. It is understood and agreed that the entire Agreement between the parties is contained herein and that this Agreement supersedes all oral agreements and negotiations between thereement aretincorporated oreattachedrand a~e All items referred to m this Ag deemed to be part of this Agreement. ii. Any alterations, variations, modification, or waivers of provisions of this Agreement shall only be valid when they have been reduced to writing as an amendment to this Agreement signed by the parties hereto. ARTICLE 1 X Indemnification This Agreement creates no obligation on the County, other than the obligation to make the payments according to the terms contained herein. Without limitation, this Agreement shall not be construed as obligating the County to acquire property, to make 3 relocation benefit payments to displaced parties, or to make any payment of any nature to a redeveloper selected by the Authority to develop the Property. Other than the County obligation created under this Agreement, the Cou/ntut tsrofficers agenlts and~employeelss and agrees to defend and hold harmless the y from any claims based on the development of the Project. ARTICLE X Amendments This Agreement may be amended only by unanimous agreement of the parties hereto by resolution of the governing bodies of said parties. IN WITNESS WHEREOF, the parties to this Agreement have hereunto set their hands on the date written below. Approved as to form and execution: COUNTY OF HENNEPIN STATE OF MINNESOTA Assistant County Attorney Date: ~ 20~ Approved as to form and execution City Attorney , 20 Date: By: Chair of Its County Board By: Assistant/Deputy/County Administrator ATTEST: Deputy/Clerk of County Board CITY OF RICHFIELD By: Its: Mayor By: Its: City Manager 4 HENNEPIN COUNTY HOUSING AND REDEVELOPMENT AUTHORITY By: Its: Chair By: Its:. Executive Director EXHIBIT B DECLARATION AND ACKNOWLEDGMENT The undersigned, on behalf of the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota hereby certifies and declares that it did on or about 200 issue and deliver to the developer of the Cedar Point Project, a Certificate of Completion covering the portion of the Project that was acquired with funds provided to the Authority by the County in accordance with the provisions of the 2004 the Cooperative Agreement for Cedar Point Project dated "Agreement"). A copy of the Certificate of Completion is attached as Attachment A hereto. The undersigned respectfully requests that the County countersign this Declaration acknowledging that the Authority has satisfied its obligations under Article IV of the Agreement and is forever discharged from its obligation to repay all or part of the funds paid to the Authority under the Agreement. DATED: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By: Its: Chairperson By: Its: Executive Director ACKNOWLEDGMENT hereby The undersigned, on behalf of, and with authority of the County of Hennepin, declares and acknowledges that the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota has fully satisfied its obligations under Article IV of the Agreement and is forever discharged and released from any obligation to make repayment of all or part of the funds paid to the Authority pursuant to the Agreement. Approved as to form and execution: Assistant County Attorney Date: 20 COUNTY OF HENNEPIN STATE OF MINNESOTA By: 6 011805HennCo Attachment A CERTIFICATE OF COMPLETION a The undersigned hereby certifies that has fully and completely complied with its obligations under Article of that document entitled "Contract for Private Development," dated 200_ between THE HOUSING AND REDEVELOPMENT IN AND FOR CITY OF RICHFIELD and THE _ with respect to construction of the Minimum Improvements located on the tract of land described in the attached Schedule A In accordance with .the requirements of such document and is released and forever discharged from its obligations to construction the Minimum Improvements under .such above-referenced Article on the above-referenced tract. DATED: HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD By: Its: Chairperson By: Its: Executive Director 7 Exhibit A City of Richfield Cedar Point Redevelopment Area Proposal December 15, 2004 The information is being provided as a basis for decision making on the concept of funding assistance and not necessarily on the precise amount of the assistance itself. The information presented is an estimate based on the best information available at the current time. Inherent in this estimate are a number of assumptions (development size, property tax class rate, tax rate, inflation, etc.), a change in any of the assumptions could alter the resulting conclusion. 9 City of Richfield -Cedar Point Redevelopment Area Proposal December 1'S, 2004 The Low Frequency Noise Impact Area • The new north-south runway is being constructed approximately 1,200 feet (2 blocks) from an existing single family neighborhood Richfield. • The designation of "Low Frequency Noise Impact Area" is based. on the results of a City of Richfield/Metropolitan Airports Commission (MAC) noise study. • The results of the noise study concluded that once the new north-south runway becomes operational, the existing structures will be unable to endure the negative impacts of the low frequency noise exceeding. 87 decibels. • Noise studies indicate that masonry constructed commercial structures with a continuous building mass and a height exceeding that of adjacent structures is required to block low frequency noise penetration into the neighborhood. • During the past 3 years, the City of Richfield has acquired 52 of the single-family homes, 4 of the apartment buildings (60 units) and 28 of the commercial properties. These properties were acquired in cooperation with the State of Minnesota and the Metropolitan Airports Commission (MAC). The City of Richfield has been unable to secure additional funding for the remainder of the affected properties in the Low Frequency Noise Impact Area. 10 Noise Impacts and Acquisition Strategy Z 0 Z o ~ a J L Lr L L L ~ ~ L L L O w s ~~ ~ ~ ~ m~ ~ °' ~ ~ L ~ L L L L Z L L L ~ J ~ C7 ~ W Z U 0 J m 63rd 62nd ~ { * t-=- ~=-~ f- 1 i I ~ ' ~ l fl -~-~-1_ Ir--II 64t h 63rd 64th 65th 66th \\ 67th _- - 1 /~ \. shin 69th j I~ 70tf1 71 s1 72ntf 73th 7atn 75th 76th ntn 78th 0 1000 2000 3000 4000 Feet i, gas ~ core data r protects r airport Impact maps.apr 65th 66th 67th 68th 0 300 600 900 Feet ~~~ >.~ N w r. LEGEND s 87dB zone (Airport Noise Impact Area) Homes Purchased w/ $5M ~ Properties Acquired w/ $10M in AIP Funds ~ Properties Acquired by MAC Right-of-Way for ~ HWY Interchange Soundproofed Homes 11 Low-Frequency Noise Impact Area Redevelopment Strategy 64th SI iFi_'' _ _'. 1~~~, ii`I i' ~~ ~ - ~~'!~II I~ 1~` 500 0 500 Feet ~~ ~-- 0 Retail D Housing D School/Housing [~ Office Low Frequency Noise Boundary Q September 24, 2002 IG City of Richfield -Cedar Point Redevelopment Area Proposal December 15, 2004 The Cedar Point Development Proposal • The City of Richfield has been in discussions with developers regarding the redevelopment of the area with noise compatible uses. • The Ryan Companies has proposed the construction of a 300,000+ sq. ft. retail center, constructed of masonry materials, with a continuous building footprint of 1,400 linear feet and a height exceeding all surrounding properties. • The proposed development area is 29 acres in size and is bounded by 63rd Street on the north, 66`" Street on the south, 1 7`" Avenue on the west and Trunk Highway 77 on the east; this area has been termed the "Cedar Point Redevelopment Area." • There are 33 more homes, 2 apartment buildings and 3 businesses yet to be acquired in the Cedar Point Redevelopment Area; it is estimated that the cost to purchase the remainder of affected properties will be approximately $10.8 million. • The $10.8 million cost of acquiring the remaining developed property plus the $3 million appraised value of the already vacant land, however, is cost prohibitive for the development being proposed. • In order for the proposed development to be financially viable, there is a need for at least $3 million in public financing to "write down" the site assembly costs to a financially feasible level. • Evidence shows that this area will not meet the definition of "substandard " as currently identified in redevelopment statutes, a TIF District is not a viable source of public financing. • Tax Abatement or other such assistance appears to be the only viable means of providing the necessary land write-down. 13 rw~'a''k~~~r~~ ~:__ k'3~ri ? p 4 ~?e$k~~ ~~~~~ ~ ~ "~. t 1 ~~~~ i;;. /< v. = ~ ~ , ,'${.S • ~?~ I YI. ~Ys ...-.ka'r.u~{ ~". Ax 14 City of Richfield -Cedar Point Redevelopment Area Proposal December 15, 2004 Property Tax Impacts « Prior to runway construction, the area's annual p roperty tax contribution was $68,380 to the City of Richfield and $86,258 to Hennepin County. With the completion of recent property purchases by the City of Richfield, and the exemption of these properties from property tax payments, the area's annual pro perry tax contribution will be $26,713 to the City of Richfield and $33,698 to Hennepin County. « As money becomes available, it is the City of Richfield's stated policy to complete property acquisitions in this. area. Once complete, this would result in an annual property tax contribution of $0. « The development proposed by Ryan would result in annual property tax contribution of approximately $176,662 to the City of Richfield and $222,851 to Hennepin County. 15 a• } „x~ ~~~I~ ~SJL~_~~~~~~ ~ , w~~, ~,_~ ~ ! Y s Y~'~ NIO~ ~ o S ~u` FL ~~€ r~ gm; cawxu~ '^ a n s 66 ^~~ CCS b~A 4~ 43 Q ~ •~ ~ ~ V 1O ~ ~ ~ ~ M ~` a co ~ oo m ~ ~ ~ N ~ ~ ~ 6R b9~ bR ~ ~ ~ o r- + ~ ~ ~' w Q ~ 0 ~ 0 ~ ¢. ~ O W w ~ ~ 'd N ~ ~ ~ ~ ~ ~ N M N ~, y ~ ~r~~ ~ th ~ a --~ ~ y N O ~ [~ N ~ -d ~ ~ o ~ ~ ~ :: ~ 0 N o N O g N ~ a O ~U M ~O 00 ~O ~ ~ ~ ~ r n 'p .n Mb~}~ bl~ ,~ ~ Q Q . ti {~ U a ty ~ ~ a ~C ~ v .~ J .~ ~ ,La 7', ~ a, ~ c ~ ~; ~ `n ~' ~ Q ~ • a ~ O ~ ~ ~ U .r 'd ~ .~ ~ ~ CAS b . ~ .... ti ~ ~ F ? ~ 3 ~~ ~ ~ ~ ~ ~ r'„ , ~ ~ E°cx~ , O z 16 City of Richfield -Cedar Paint Redevelopment Area Proposal December 15, 2004 The Need for Tax Abatement or Other Assistance • Without public assistance of approximately $3 million to write-down the land costs, however, it would be financially infeasible to construct the proposed development. • Richfield's City Council has,. by a unanimous vote, indicated a willingness to abate its portion of the property taxes to a $0 base for the maximum allowable period of 15 years. This would result in a tax abatement valued at $1,246,159. • Upon the expiration of such a tax abatement, it would take the City of Richfield only two and a half years to recoup the property taxes that could have been realized during the abatement period at the property's present state of improvement. • An abatement by the City of Richfield alone, however, still results in a funding gap of $1,753,841 to achieve the necessary land write-down. • It has been determined that this funding gap could be eliminated by a tax abatement or other assistance by Hennepin County. • The abatement or other assistance required of Hennepin County in order to provide the remaining fundsrequired would be valued at approximately $1.8 - $2 million i~ AGENDA ITEM # 4E REPORT # 6 STAFF REPORT ~ HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 18, 2004 KATIA MEDVETSKI, REPORT PREPARED BY: REDEVELOPMENT SPECIALIST NAME, TITLE BRUCE PALMBORG, COMMUNITY REPORT PRESENTER: DEPARTMENT DIRECTOR REVIEW: DEVELOPMENT DIRECTOR NAME, TITLE REVIEWED BY ACTING EXECUTIVE DIlZECTOR: ITEM FOR HRA CONSIDERATION: Consent to register title to certain real estate related to Kensington Park redevelopment r,roiect. I, RECOMMENDED ACTION: By Motion: Approve the attached Consent to register title to certain real estate related to Kensington Park redevelopment project. II BACKGROUND Lyndale Gateway, LLC, (Developer) of the Kensington Park redevelopment project at Lyndale Avenue and 77th Street, has been in the process of registering real estate titles through a legal proceeding with Hennepin County District Court. One last portion of a parcel of land requires ~ Avenue nThe Richf e d Hous ngrandcated at approximately 77th Street and Aldric Redevelopment Authority (HRA) is being asked by the Developer to consent to the registration of this land because of its mortgage interests in the project. (On 2/26/03, the HRA considered and approved $1.1 in "gap" financing for the project. Subsequent approvals to the contract with the developer were made to memorialize this.) The Consent is attached for consideration. Exhibit A to the Consent provides the legal description. 011805_Lot8 La nd Reg istr III. BASIS OF RECOMMENDATION A. POLICY The HRA has an interest in the registration proceeding because it provided gap financing to the project. A mortgage is outstanding on the payback of the assistance. The HRA's consent to the registration proceeding will expedite the land registration by the developer. $, CRITICAL ISSUES The proposed Consent document reflects the HRA's interest in the land being registered and will avoid the need for a contested hearing on the HRA's interests. C. FINANCIAL N/A D. LEGAL By consenting to the proceeding, the HRA waives the right to contest the proceeding. The HRA has no reason to contest the proceeding, however. Legal counsel has been working with the developer's legal counsel on the registration proceeding and has reviewed this matter and the Consent document. IV ALTERNATNE RECOMMENDATION(S) ~ Delay or do not consent to the registration proceeding. However, doing so could delay the registration proceeding. V ATTACHMENTS Consent VI. PRINCIPAL PARTIES EXPECTED AT MEETING N/A No. 20800 DISTRICT COURT STATE OF MINNESOTA FOURTH JUDICIAL DISTRICT COUNTY OF HENNEPIN CONSENT In the Matter of the Application of Lyndale Gateway, LLC, a Minnesota limited liability company, to register the title to certain real estate situated in Hennepin County, Minnesota, described in Exhibit A attached hereto. THE UNDERSIGNED hereby consents to the Application and Order prayed for in this matter, subject to the following matters: Mortgage dated September 5, 2003, and filed for record December 5, 2003, as Registrar of Titles Document No. 3888219 to secure the principal sum of $500,000.00; partially released by Partial Release of Mortgage filed for record as County Recorder Document No. /Registrar of Titles Document No. Mortgage dated September 25, 2003, and file for record December 5, 2003, as Registrar of Titles Document No. 3888220 to secure the principal sum of $3,000,000.00; partially released by Partial Release of Mortgage filed for record as County Recorder Document No. /Registrar of Titles Document No. A Memorandum of Development Agreement filed for record as Registrar of Titles Document No. 3888218. Assessment Agreements filed for record as Registrar of Titles Document Nos. 3888221 and 3888222. Consent to Assignment, Subordination and Estoppel Agreement filed as Registrar of Titles Document No. 4021183. First Amendment to Consent to Assignment, Subordination and Estoppel Agreement recorded with the County Recorder as Document No. 8431208. The undersigned further stipulates a o Lagrde le Gat 4ay, LLC a Gran tDe, ~,~,a ent No. 8215337 from the undersigned, as Grantor, y intended to convey all of the interest acquired by Grantor in Document No. 8215338. 1 Dated this day of , 2005. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA By: Its: Vice Chairperson By: Its: Acting Executive Director STATE OF ) ss.: COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2005, by Joan Helmberger, the Vice Chairperson of the Housing and Redevelopment Authority in and for the City of Richfield, a public body corporate and politic under the laws of the State of Minnesota, on behalf of the corporation. Notary Public STATE OF ) ss.: COUNTY OF ) The foregoing instrument was acknowledged before me this day of 2005, by Steven L. Devich, the Acting 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 corporation. Notary Public 2 EXHIBIT A That part of Lot 8, lying North of the South 51.35 feet of said Lot 8; That part of the West half of the vacated alley lying between the easterly extensions of the North line of said Lot 8 and of the North line of the South 51.35 feet of said Lot 8; All in "GLENN'S ADDITION." 3 AGENDA ITEM # 4D REPORT # 5 J STAFF REPORT ~ HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 18, 2004 KATIA MEDVETSKI, REPORT PREPARED BY: REDEVELOPMENT SPECIALIST NAME. T/TLE REPORT PRESENTER: DEPARTMENT DRECTOR REVIEW: REVIEWED BY ACTING EXECUTIVE DIRECTOR: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE ITEM FOR HRA CONSIDERATION: Ratification of Consent for filing the CIC Plat for Common Interest Community No. 1416, Declaration for Common Interest Community No. 1416, and Declaration of Easements (Parkina and Access). I, RECOMMENDED ACTION: By Motion: Ratify the executed Consent for fiat on foC Coml monr Common Interest Commun16 and Decl ation of Easements (Parking Interest Community No. 14 , and Access). II BACKGROUND _~ Toward the end of December, 2004, Lyndale Gateway, LLC, (Developer) of the Kensington Park redevelopment project at Lyndale Avenue and 77th Street, requested the Richfield Housing and Redevelopment Authority (HRA) to consent to filing three instruments with Hennepin County before years end: CIC Plat for Common Interest Community No. 1416, which covers the north nine (9) townhome units that sold and closed, and establishes property lines for each of the townhome units; 011805_RatifConsentCl CPlat.doc Declaration for Common Interest Community No. 1416 for those 9 units that sets out the relative right of townhome owners and is statutorily required to be filed with the plat; and Declaration of Easements (Parking and Access) that sets out what use the townhome units can make of the driveway and parking improvements to a portion of the land to be owned by the owner of the commercial properties or by an association of the commercial property owners. It was important that these instruments be recorded prior to the end of 2004 because of pre-plat property descriptions and tax implications for newly sold and closed townhome units. The HRA's legal counsel, Chairperson, and staff worked together and determined the need and urgency to allow for the execution of -the Consent prior to years' end followed by a subsequent ratification by the HRA Board. The Consent was executed to allow for the recording of the instruments in a timely manner. The Developer was also required and complied with providing the HRA with a letter indicating that it would cooperate with the HRA should any modification be required to the form of the Consent. Attached at Exhibit A is the executed Consent of December 29, 2004 and the Developer's letter, dated January 6, 2004, at Exhibit B. III. BASIS OF RECOMMENDATION A. POLICY The HRA's ratification of the Consent is required because of its mortgage interest in the property which is being partially released at the occurrence of certain events. The Developer's request to file the plat and other instruments was reasonable and the timing of the request was tied to the occurrence of the closings. $. CRITICAL ISSUES The Consent was required in order to record the instruments. Filing prior to year's end 2004 would resolve potential property tax complications. C. FINANCIAL N/A D. LEGAL Legal counsel reviewed the matter and prepared the Consent document. The HRA Chairperson was consulted on the matter. TV_ ALTERNATIVE RECOMMENDATION(S) I V. ATTACHMENTS ~ Letter from Developer VI PRINCIPAL PARTIES EXPECTED AT MEETING ~ N/A EXHIBIT H CONSENT The undersigned, The Housing and Redevelopment Authority in and for the City of Richfield, Minnesota, a public body corporate and politic under the laws of Minnesota ("Mortgagee"), mortgagee under Document Nos. 8215341 and 8215342 (the "Mortgages"}, files of the Hennepin County Recorder, daes hereby consent to the filing of the following instruments: CIC Plat for Common Interest Community No. 1416, filed as Document No. in the Office of the Hennepin County Registrar of Titles; Declaration for Common Interest Community No. 1416, filed as Document No. in the Office of the Hennepin County Registrar of Titles; Declaration of Easements (Parking and Access) filed as Document No. ~ the Office of the Hennepin County Registrar of Titles; provided, that by consenting to the recording of the above instruments, (i) the Mortgagee does not in any manner constitute itself or obligate itself as a Declarant as defined in Document No. and Document No. (ii) such consent does not modify or amend the terms and conditions of the Mortgages and related documents, and (iii) each of the Mortgages shall remain as alien on the property described therein, prior to any Assessment liens or other liens imposed under Document No. ,until released or satisfied. THE HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD, MINNESOTA CAH-257303v2 RC125-240 STATE OF MINNESOTA ss.. COUNTY OF HENNEPIN The foregoing instrument was acknowledged before me this ~~ ~" day of December, 2004 by Joan Helmberger and Steven L. Devich, the acting chairperson and acting executive director, respectively, 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, by and on behalf of said corporation. ;4 nlv~nr vv+/.nnl,n,vJ~,/`,rt~.nnnf nfnlNrl.~v„M1 9 ,~, '~~ KA71.4Mc[~.f~TSK! 'Lj- NG'•'ARY PU3L~C-FGINilESCTA ' ~` MY CCMhEISSICN EXr^IRES t-31.2005 10 • THIS DOCUMENT DRAFTED BY: Kennedy & Graven, Chartered 200 South. Sixth Street, Suite 470 Minneapolis, MN 55402 (612) 337-9300 otary Public CAH-257303v2 2 RC125-240 EXHIBIT B Jan 07 2005 1:15PM CORNERSTONE GROUP 9529426902 p.2 7'HF CORNERSTONE GROUP 73ee rl4etro Boulevard • Suite S85 • £dinR, MN 55439 Direct • 952/gr,2•~igoe Fax • g$~f94s•6gc2 Thrt orneratcneGreu p. c. om. January 6, 2045 Mr. John Stark City of Richfield 670(1 Portland Ave S. Richfield, Iv1N 55423 Re: HRA Consent 15~ar John: We have reviewed the HRA Conse#~t xequired for the filing of the Piat for Kensington Park. If for same reason, Hennepin County does.not approve the Consent or requests Borne minor revisions to the Consent that do not adversely impact Lyndale Gateway, LLC, we wilt cooperate with the HXLA to accommodate those mod cations. We ire happy to be nearing completion of the Kensington Park development and will continue to work cooperatively wit~t the HRA on whatever matters may arise. Please contact me at 952-9~i2-69t10'ext. 16 if you have additional questions or concerns. Thank you for your continued support. Sincerely, .~ ~eidi Kurtze Vice President The Cornerstone Group 3 AGENDA ITEM # REPORT # 4C 4 STAFF REPORT ~ HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 18, 2005 REPORT PREPARED BY: CHERYL KRUIVIHOLZ, ADMIN. ASSISTANT NAME, TITLE STEVEN L. DEVICH, ACTING EXECUTIVE REPORT PRESENTER: Nance, REVIEWED BY EXECUTNE DIRECTOR: ' ITEM FOR HRA CONSIDERATION: Consideration of designating Steven L. Devich, Administrative Services Director, as the Acting Executive Director of the HRA for 2005. RECOMMENDED ACTION: By Motion: Designate Steven L. Devich, Administrative Services Director, as the Acting Executive Director of the HRA for 2005 and direct the Executive Director to designate the Community Development Director as Acting Executive Director in the event both the Executive Director and Administrative Services Director are absent from the Ci II BACKGROUND I On January 11, 2005, the City Council appointed the Administrative Services Director to serve as the Acting City Manager in the absence of the City Manager. Since the City Manager also serves as the Executive Director of the HRA, it is recommended that the Administrative Services Director, Steven L. Devich, be designated by the HRA as the Acting Executive Director of the HRA to serve in that capacity during the absence of the Executive Director. In the event both the Executive Director and Administrative Services Director are absent from the City, the Executive Director will designate the Community Development Director to serve as the Acting Executive Director. 0118actingexecutive III. BASIS OF RECOMMENDATION A. POLICY Designation of an Acting Executive Director is a normal business action of the HRA similar to the designation of depositories and the official newspaper. The Administrative Services Director has been designated as the Acting Executive Director in the past. The Administrative Services Director serves as the Acting City Manager, filling other similar responsibilities for the City Manager in the Manager's absence. In the event both the Executive Director and Administrative Services Director are absent from the City, the Executive Director will designate the Community Development Director to serve as the Acting Executive Director. , B. CRITICAL ISSUES It is necessary to designate a person to serve as the Acting Executive Director to ensure continuation of HRA operations during an absence of the Executive Director. IV ALTERNATIVE RECOMMENDATION(S) ~ Defer this designation to another HRA meeting. V PRINCIPAL PARTIES EXPECTED AT MEETING None. AGENDA ITEM # 4B REPORT # 3 STAFF REPORT ~ HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 18, 2005 REPORT PREPARED BY: NANCY GIBBS, CITY CLERK NAME; TITLE STEVEN L. DEVICH, ACTING CITY REPORT PRESENTER: Nom, REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of resolution designating an official newspaper for 2005. I. RECOMMENDED ACTION: By Motion: Approve the resolution designating for 2005 the Richfield Sun-Current as the official newspaper and the Minneapolis Star Tribune as the second official newspaper for the City of Richfield. II BACKGROUND I The Richfield Sun-Current, published by Minnesota Sun Publications, has been the City's official newspaper for many years. Attached is a copy of a letter from Minnesota Sun Publications requesting that they be designated the official newspaper for the City of Richfield for 2005. The 2005 advertising rate structure for legal notices is as follows: 1 Column width $14.30 per inch $7.15 per subsequent inch There are 11 lines per inch. The 2004 rate was the same as the rate proposed for 2005. For 2005, the Minneapolis Star Tribune should be considered as the second official newspaper to be used only in rare situations where more timely publication dates are required. The 2005 advertising rate structure for legal notices in the Sunday 0118Newspaper and week day, metro and statewide, issues is $4.75 per line. The 2004 rate was $4.50 per line. III. BASIS OF RECOMMENDATION I A. POLICY The Charter of the City of Richfield requires in Section 13.01 thereof that the City Council annually designate an official newspaper for the City. The Sun-Current has expressed an interest in continuing to serve as the official newspaper of the City. The Sun-Current has served well as the official paper for many years. The Sun-Current is delivered to nearly all residences in the City. $. CRITICAL ISSUES The designation must be made at the first meeting of the new year. G FINANCIAL The cost for the official publications is reasonable. D. LEGAL A newspaper must be designated each year by the City for publication of all official and legal City business. IV ALTERNATNE RECOMMENDATION(S) I Not make a designation and request the City Clerk's office to check into using another publication. V ATTACHMENTS Resolution Letter from Minnesota Sun Publications Fax from Star Tribune VI. PRINCIPAL PARTIES EXPECTED AT MEETING None HRA RESOLUTION NO. RESOLUTION DESIGNATING AN OFFICIAL NEWSPAPER FOR 2005 WHEREAS, the Charter of the City of Richfield requires in Section 13.01 thereof that the City Council annually designate an official newspaper for the City. NOW, THEREFORE, BE IT RESOLVED that the Richfield Sun-Current is designated the official legal newspaper for the Richfield Housing and Redevelopment Authority for 2005 for all publications required to be published therein. BE IT FURTHER RESOLVED that the Minneapolis Star Tribune is designated as the Richfield Housing and Redevelopment Authority's secondary official newspaper for 2005. Adopted by the Housing and Redevelopment Authority in and for of the City of Richfield, Minnesota this 18th day of January, 2005. Thomas E. Harms, Chair ATTEST: Kristal Stokes, Secretary ,g .~ newspapers November 15, 2004 City of Richfield City Council 6700 Portland Avenue Richfiel~', SAN 55423-2599 Dear C~cy Council Members: The P,~,hfleld Sur, •Cvr ant vc;;ld like to be considsreu for designation as the ~sgal nev~sparer for th;; City of Richfield for the year 2005. All published legal noi:ices are posted on our website (www.mnsun.com) at no additional charge. This is an enhancement to the local news coverage already available on the Internet and will broaden the readership of your legal notices. One of the main benefits of publishing your legal notices with the Sun-Current is our home delivery. Sun Newspapers has become the primary source of community news in the suburbs. Your notices in our paper have the best chance of being seen and read. "~e would like to continue working with you, therefore, we will not be making a rate change for the ..oming year. The rate structure for legals effective January 1, 2005 will be: 1 column width: $14.30 per inch for first insertion $7.15 per inch for subsequent insertions Our columns are 14 picas wide There are 11 lines per inch Two nc':arized affidavits on each of your publications will be provided with no additional charge. The deadline for regular length notices is 2:00 p.m. the Thursday prior to publication. E-mailing the Ieg.l rcticcs iv u^ cfficibnt and accurate w-ay of getting the notices to Us. The e-mail audress for the legal department is IegalsC>?mnsun.com. We still accept notices on disk, faxed or through the mail. If you require more information to make your decision, please contact me or Mary Ann Carlson, our Legal Representative, at 952-392-6829. Thank you for considering the Sun-Current as the official newspaper for the City of Richfield in 2005. We appreciate the opportunity to serve the needs of your community. Sincerely, . Je rey .Coolman .: ,.. ce PreSicient of Sales and General Manager 10917 Va~,~,~Y V~tiv Roan ®ED~N Px.~iu~ ®l~Ii~SOTa 553 ®95,~~-8~9-0797 ®F.~: 95N-9~1-3588 425 PoM2ind Avenue, Mln~eapolis, MiM6SOta 55488-0002 • ~:~.. . f. -.. ' Decernbez 14, 2004 To Whom It May Concern: Star Tribune's J..ega] Notice rate will be $4.75 per line beginning January 1, 2005. Sunday or Weekday Metro All Editions....no additional charge AGENDA ITEM # 4A REPORT # Z STAFF REPORT r HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 18, 2005 REPORT PREPARED BY: REPORT PRESENTER: REVIEWED BY EXECUTIVE DIRECTOR: IIRECTOR ITEM FOR HRA CONSIDERATION: Consideration of resolutions designating official depositories for the Housing and Redevelo ment Authorit for 2005, includin the a royal of collateral. I. RECOMMENDED ACTION: By Motion: Adopt the attached resolutions designating official depositories, with the understanding that the HRA could not invest in any of the depositories beyond the level of insurance coverage of the aledged collateral. III. BACKGROUND I III. BASIS OF RECOMMENDATION A. POLICY • In accordance with Minnesota Statutes Section 118A.01 - 118A.06, the HRA of Richfield must designate financial institutions annually. The institutions must pledge the collateral over and above the amount of federal insurance, as public depositories. • M&I Marshall & Illsley Bank, pledging $1,540,000 of collateral, has fulfilled this requirement and should be considered as a depository for the HRA's vendor accounts and all savings deposits in excess of $100,000. CHRIS REGIS, FINANCE MANAGER NAME, TITLE 0118depositories STEVEN L. DEVICH, ACTING • U.S. Bank operating in conjunction with the 4M Fund has also fulfilled the requirements and should. be considered as a depository for the City's Deputy Registrar, payroll and vendor accounts and all savings deposits. • The HRA must also designate annually, certain savings and .loan associations and banks as official depositories for investment of certain HRA funds. With approval of these official depositories, the HRA will be able to invest funds in these institutions, not exceeding the federal insurance of $100,000. • Finally, a designation must be made for certain financial institutions as depositories for the investment of HRA funds for 2005. These institutions, such as investment brokerage firms, offer government securities in the manner required by law. These financial. institutions include M&I Marshall & Illsley Bank, tJ.S. Bank, Dain Rauscher, Wells Fargo Brokerage Services, Morgan Stanley Dean Witter, Morgan Keegan, N.A. Investment Services, Inc. and the 4M Fund. B. CRITICAL ISSUES • N/A C. FINANCIAL • N/A D. LEGAL • The HRA is required by Minnesota Statute 118A.01 - 118A.06, to designate as a depository of funds, insured banks or thrift institutions. Any collateral so deposited is accompanied by an assignment pledged to the HRA in the amount specified in the attached resolutions. IV. ALTERNATIVE RECOMMENDATION(S~ • The HRA could- solicit other financial institutions for official depositories, but past relationships with the depositories recommended have proven satisfactory for the City. V. ATTACHMENTS • Resolution designating the M&I Marshall &Illsley Bank a depository of funds of the HRA of Richfield for the year 2005 and approving collateral. • Resolution designating US Bank a depository of funds of the HRA of Richfield for the year 2005. • Resolution designating certain savings and loan associations and banks as depositories for the investment of HRA funds in 2005. • Resolution designating certain financial institutions as depositories for the investment of HRA of Richfield funds in 2005. VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None RESOLUTION NO. RESOLUTION DESIGNATING THE M&I MARSHALL & ILLSLEY BANK A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD FOR THE YEAR 2005 AND APPROVING COLLATERAL BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as follows: That, in accordance with Minnesota Statutes, Section 118A.01- 118A.06, M&I Marshall &Illsley Bank be, and hereby is designated a depository of the funds of the Housing and Redevelopment of Richfield, subject to modification and revocation at any time by said Housing and Redevelopment Authority, and subject to the following terms and conditions: The said depository shall not be required to give bonds or other securities for such deposits provided that the total sum thereof shall not at any time exceed in any depository the sums for which its deposits are insured under the Acts of Congress of the United States relating to insurance of bank deposits; but that in case such deposits in any such depository shall at any time exceed such insured sum, said depository shall immediately furnish bonds or other security for such excess according to law, approved by the Housing and Redevelopment Authority of Richfield. That said depository shall pay on demand all deposits therein; and shall pay all time deposits, at or after the end of the period for which the same shall be deposited, on demand. BE IT FURTHER RESOLVED, that there shall be maintained a general account in which shall be deposited all monies. The following officers or their facsimile signatures shall sign checks on this account; THOMAS E. HARMS, CHAIR STEVEN L. DEVICH, ACTING EXECUTIVE DIRECTOR BE IT FURTHER RESOLVED, that collateral in the amount of $1,540,000 is deposited for safekeeping at M&I Marshall &Illsley Bank, Milwaukee, Wisconsin is hereby approved. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 18th day of January, 2005. Thomas E. Harms, Chair ATTEST: Kristal Stokes, Secretary RESOLUTION NO. RESOLUTION DESIGNATING U.S. BANK A DEPOSITORY OF FUNDS OF THE HRA OF RICHFIELD FOR THE YEAR 2005 BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield as follows: That, in accordance with Minnesota Statutes, Section 118A.01- 118A.06, U.S. Bank be, and hereby is designated a depository of the funds of the Housing and Redevelopment Authority of Richfield, subject to modification and revocation at any time by said Housing and Redevelopment Authority, and subject to the following terms and conditions: The said depository shall not be required to give bonds or other securities for such deposits provided that the total sum thereof shall not at any time exceed in any depository the sums for which its deposits are insured under the Acts of Congress of the United States relating to insurance of bank deposits; but that in case such deposits in any such depository shall at any time exceed such insured sum, said depository shall immediately furnish bonds or other security for such excess according to law, approved by the Housing and Redevelopment Authority of Richfield. That said depository shall pay on demand all deposits therein; and shall pay all time deposits, at or after the end of the period for which the same shall be deposited, on demand. BE IT FURTHER RESOLVED, that there shall be maintained a general account in which shall be deposited all monies. The following officers or their facsimile signatures shall sign checks on this account; THOMAS E. HARMS, CHAIR STEVEN L. DEVICH, ACTING EXECUTIVE DIRECTOR BE IT FURTHER RESOLVED, that all funds remaining in the account at the end of each business day will be transferred from U.S. Bank to the 4M Fund where funds deposited are invested and insured. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 18th day of January, 2005. Thomas E. Harms, Chair ATTEST: Kristal Stokes, Secretary RESOLUTION NO. RESOLUTION DESIGNATING CERTAIN SAVING AND LOAN ASSOCIATIONS AND BANKS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2005 BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota: WHEREAS, pursuant to Minnesota Statutes, Sections 118A.01 - 118A.06, municipal funds may be deposited in any Savings and Loan Association or Bank which has its deposits insured by the Federal Savings and Loan Insurance Corporation (FSLIC) or the Federal Deposit Insurance Corporation (FDIC); and WHEREAS, the amount of said deposits may not exceed the FSLIC/FDIC insurance covering such deposits which insurance amount is presently $100,000; and WHEREAS, .the deposif of Housing and Redevelopment Authority funds in Savings and Loan Associations and Banks would provide greater flexibility in the Housing and. Redevelopment Authority's investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota, as follows: 1. It is hereby found and determined that it is in the best interest of the proper management of Housing and Redevelopment Authority funds that certain Savings and Loan Association and Banks be designated as additional depositories for Housing and Redevelopment Authority funds for 2005. 2. It is further found and determined that the purpose of such depository designation is to facilitate the proper and advantageous investments of Housing and Redevelopment Authority funds and that such designation is not exclusive nor does it preclude the deposit of any Housing and Redevelopment Authority funds in other officially designated depositories of the Housing and Redevelopment Authority. 3. The Treasurer and Finance Manager are hereby authorized to deposit Housing and Redevelopment Authority funds in various depositories up to the amount of $100,000, or such other amount as may be subsequently permitted by law, such deposits to be in the form of demand accounts for Public Unit Savings Certificates purchased by the City, payable to the Housing and Redevelopment Authority of Richfield on the signatures of the Housing and Redevelopment Authority Treasurer or Finance Manager. Such deposits may be made and withdrawn from time to time by the Treasurer or Finance Manager as his best judgment and the interests of the Housing and Redevelopment Authority dictates. 4. The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies of the Housing and Redevelopment Authority regarding the investment of Housing and Redevelopment Authority funds. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 18t" day of January, 2005. ATTEST: Thomas E. Harms, Chair Kristal Stokes, Secretary RESOLUTION NO. RESOLUTION DESIGNATING CERTAIN FINANCIAL INSTITUTIONS AS DEPOSITORIES FOR THE INVESTMENT OF HOUSING AND REDEVELOPMENT AUTHORITY OF RICHFIELD FUNDS IN 2005 WHEREAS, the Housing and Redevelopment Authority of Richfield has money which is available for investment; and and WHEREAS, different financial institutions offer different rates of return on investments; WHEREAS, the Housing and Redevelopment Authority of Richfield shall purchase U. S. Treasury Bills, U. S. Treasury Notes and other such government securities in the manner required by law from the institution offering the highest rate to the Housing and Redevelopment Authority of Richfield providing greater flexibility in the investment program and maximize interest income thereon. NOW, THEREFORE, BE IT RESOLVED, by the Housing and Redevelopment Authority of Richfield, Minnesota, in accordance with Minnesota Statutes, Sections 118A.01 -118A.06, as follows: 1. It is hereby found and determined that it is in the best interest of the proper management of Housing and Redevelopment Authority of Richfield funds that certain financial institutions be designated as additional depositories for Housing and Redevelopment Authority of Richfield funds for 2005. 2. The following financial institutions designated as depositories for the Housing and Redevelopment Authority of Richfield funds: Dain Rauscher, Inc. Morgan Stanley Dean Witter Wells Fargo Brokerage Services Morgan Keegan N.A. Investment Services, Inc. 4M Fund 3. The Treasurer and Finance Manager are hereby authorized to deposit the Housing and Redevelopment Authority of Richfield funds in any or all of the depositories herein designated. Such deposits may be made and withdrawn from time to time by the Treasurer or Finance Manager's judgment and as the interest of the Housing and Redevelopment Authority of Richfield dictates. 4. The investment of funds and the reporting thereof pursuant to this resolution shall be conducted in accordance with established policies regarding the investment of these funds. Adopted by the Housing and Redevelopment Authority of Richfield, Minnesota this 18th day of January, 2005. Thomas E. Harms, Chair ATTEST: Kristal Stokes, Secretary AGENDA ITEM # j REPORT # j ~~' STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING JANUARY 18, 2005 REPORT PREPARED BY: REPORT PRESENTER: REVIEWED BY EXECUTIVE DIRECTOR: CHERYL KRUMHOLZ, ADMIN. ASSISTANT Nance, TITLE STEVEN L. DEVICH, ACTING EXECUTIVE ITEM FOR HRA CONSIDERATION: Consideration of the election of officers for the Housing and Redevelopment Authority for 2005. I. RECOMMENDED ACTION: By Motion: Elect officers for the Richfield Housing and Redevelo ment Authorit for 2005. II. BACKGROUND The bylaws of the Richfield Housing and Redevelopment provide that the HRA hold an annual meeting in January. The bylaws further provide that the Chair, Vice Chair and Secretary of the HRA be elected at this meeting. Officers for 2004 were: Thomas Harms, Chair Joan Helmberger, Vice Chair Kristal Stokes, Secretary 0118officers III. BASIS OF RECOMMENDATION A. POLICY • The bylaws of the Richfield Housing and Redevelopment provide that the HRA hold an annual meeting in January. • The bylaws further provide that the Chair, Vice Chair and Secretary of the HRA be elected at this meeting. B. CRITICAL ISSUES • The bylaws of the Richfield Housing and Redevelopment require that an election of officers for the HRA be held at the annual meeting in January. IV. ALTERNATIVE RECOMMENDATION(S~ • Do not hold the election: However, this. would be in contradiction of the HRA bylaws. V. PRINCIPAL PARTIES EXPECTED AT MEETING • None.