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02-17-04 agendaCITY OF RICHFIELD, MINNESOTA HOUSING AND REDEVELOPMENT AUTHORITY TUESDAY, FEBRUARY 17, 2004 RICHFIELD CITY HALL 6700 PORTLAND AVENUE COUNCIL CHAMBERS 7:00 P.M. AGENDA Call to order Election of HRA Officers for 2004 (deferred from January 20, 2004) 1A. Approval of minutes of Regular HRA Meeting of January 20, 2004 Notes: 2. HRA approval of agenda 3. 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 authorization for Hennepin County HRA to administer Minnesota Housing Finance Agency loan funds in Richfield S.R. No. 10 Notes: 4. Public hearing regarding resolution authorizing sale of real property at 6945 Clinton Avenue to West Hennepin Affordable Housing Land Trust. Staff Report No. 11 Notes: 5. Consideration of professional agreement with JLG Architects for planning services in Cedar Avenue Redevelopment Planning Area Staff Report No. 12 Notes: 6. Executive Director report 7. Claims and payroll 8. 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. 0 STAFF REPORT AGENDA ITEM # 5 REPORT # ~ ~ HOUSING AND REDEVELOPMENT AUTHORITY MEETING FEBRUARY 17, 2004 REPORT PREPARED BY: JOHN STARK, ASSISTANT DIRECTOR OF COMMUNITY DEVELOPMENT NAME, TITLE REPORT PRESENTER: BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR NAME, TITLE DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Consideration of the attached Professional Services Agreement with JLG Architects for tannin services in the Cedar Avenue Redevelo ment Plannin Area. I. RECOMMENDED ACTION: By Motion: Approve the attached Professional Services Agreement with JLG Architects for planning services in the Cedar Avenue Redeveloament Planning Area. II. BACKGROUND In 1999 the planning and architecture firm RLK-Kuusisto (RLK) was commissioned by the Ryan Companies U.S. to prepare gland-use plan for the Cedar Avenue Redevelopment Planning Area. After a process involving elected/appointed officials, community members and staff was complete, the plan was finalized in early 2000. Q In the four years since that plan was completed, it has become apparent that a revised plan for this area is needed. This revised plan is needed for several reasons, the primary one of which Is: 021704PIanning • The RLK plan encompassed a geographic area, which is now larger than it need be for redevelopment, according to the noise experts. (The noise experts settled on a boundary for the impacted area, which is smaller than originally envisioned.) Staff met with several planning and architecture firms and asked two firms, SRF Consulting Group and JLG Architects, to submit proposals. The JLG proposal is preferred for a number of reasons; it is less costly, it proposes all of the services that staff was seeking plus additional services and JLG has demonstrated a history of conducting large planning projects in a short period of time. JLG has been involved in a number of high profile planning projects including the Elk River downtown redevelopment plan and the plan for rebuilding downtown Grand Forks, ND after the flood and fires of 1997. A thorough portfolio of JLG's personnel and project history is available for your review in the Community Development office. The JLG proposal (attached) includes a review of the RLK plan, preparation of planning options, three public meetings, aland-use plan with athree-dimensional computer model and aweb-based plan summary. JLG has also established a schedule for their work, with a completion goal of early June. As compensation for their work, JLG has established a fixed cost of $72,055. © Both the HRA and City Council have identified this area as a priority. In their last two annual goal-setting sessions, the Richfield City Council has cited a need for a revised plan for the area. HRA funds are available for this planning activity. III. BASIS OF RECOMMENDATION A. POLICY • The Richfield HRA and City Council have stated their commitments toward the redevelopment of the Cedar Avenue corridor; especially that area that is in the low frequency noise impact area. • There is a need for a plan outlining the strategy for redeveloping the area and the land-use patterns that the redevelopment should follow. B. CRITICAL ISSUES • A concept is needed within which redevelopment may be pursued. G FINANCIAL • There are sufficient HRA funds available to pay for the proposed plan. D. LEGAL • There are no significant legal issues involved. IV. ALTERNATIVE RECO1VIlvIENDATION(S~ t . Seek a revised proposal from JLG. • Seek additional proposals from other planning/architecture firms. • Proceed with redevelopment based solely on the 2000 RLK land-use plan. V. ATTACHMENTS • A Professional Services Agreement with JLG Architects including their proposal VI. PRINCIPAL PARTIES EXPECTED AT MEETING • A representative of JLG Architects. PROFESSIONAL SERVICE AGREEMENT JLG Architects THIS AGREEMENT made and entered into by and between the Housing and Redevelopment Authority in and for the City of Richfield, State of Minnesota, hereinafter referred to as the "HRA", and JLG Architects, hereinafter referred to as "JLG". WITNESSETH: WHEREAS, the HRA wishes to purchase the services of JLG; and WHEREAS, there are funds available for the purchase of these services. NOW, THEREFORE, in consideration of the mutual undertakings and agreements hereinafter set forth, the HRA and JLG agree as follows: 1. TERMS AND COST OF THE AGREEMENT JLG agrees to furnish services to the HRA with planning services in the Cedar Avenue Corridor as described in the JLG proposal dated January 14, 2004 4 (attached as Exhibit A). The total cost of this Agreement shall not exceed $72,055 unless amended by the HRA . All reports, memos, and other data produced by JLG become the property of the HRA. 2. PAYMENT FOR SERVICES Invoices may be submitted monthly. Payment for services shall be made directly to JLG by check. Invoices shall be of sufficient detail for the HRA to determine the line item task being completed as described in Exhibit A. Payment shall be made within 30 days of receipt of an invoice by the HRA. The cost of the work conducted under this Agreement shall not exceed $72,055 unless amended by the HRA. 3. INDEPENDENT CONTRACTOR JLG shall select the means, method, and manner of performing the services herein in consultation with the HRA. Nothing is intended or should be construed in any manner as creating or establishing the relationship of copartners between JLG and the HRA or as constituting JLG as the agent, representative, or employee of the HRA for any purpose or in any manner whatsoever. JLG is to be and shall remain an independent contractor with respect to all services performed under this Agreement. JLG represents that it has or will secure at its own expense all personnel required in performing services under this Agreement. Any and all personnel of JLG or other persons while engaged in the performance of any work or services required by this Agreement shall have no contractual relationship with the HRA, and shall not be considered employees of the HRA. Any and all claims that may or might arise under the Unemployment Compensation Act or the Workers' Compensation Act of the State of Minnesota on behalf of said personnel, arising out 021704PIanning of employment or alleged employment, including, without limitation, claims of O discrimination against JLG, its officers, agents, contractors, or employees shall in no way be the responsibility of the HRA. JLG shall defend, indemnify, and hold the HRA, its officers, agents, and employees harmless from any and all such claims irrespective of any determination of any pertinent tribunal, agency, board, commission, or court. Such personnel or other persons shall neither require nor be entitled to any compensation, rights, or benefits of any kind whatsoever from the HRA, including, without limitation, tenure rights, medical and hospital care, sick and vacation leave, Workers' Compensation, Unemployment Insurance, disability, severance pay, and PERA. 4. NONDISCRIMINATION The HRA operates in accordance with the City of Richfield's policies against discrimination. No person shall be excluded from or denied the benefits of any service performance or contemplated under the terms of this Agreement on the grounds of race, color, creed, religion, age, sex, disability, marital status, public assistance status, ex-offender status, or national origin; and no person who is protected by applicable Federal or State laws against discrimination shall be otherwise subjected to discrimination. JLG shall (1) furnish all information and reports which may be required by the City's Affirmative Action Policy, and (2) it shall comply with the City's Equal Employment Opportunity/Affirmative Action Policies with regard to employment and contracting (See Exhibit B). 5. INDEMNITY AND INSURANCE JLG agrees to defend, indemnify, and hold the HRA, its officers, and employees harmless from any liability claims, damages, costs, judgments, or expenses, including reasonable attorney, fees, resulting directly or indirectly from a negligent act or omission (including without limitation professional errors or omissions) of JLG, its agents, employees, or assignees in performance of the services provided by this contract, and against all loss by reason of the failure of JLG to fully performance in any respect, all obligations under this contract. 6. RECORDS -AVAILABILITY JLG agrees that the HRA, the State 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 JLG and involve transactions relating to this Agreement. Records shall be retained for three years from date of final payment with respect to the project. 7. DATA PRACTICES COMPLIANCE This contract is governed by Minnesota Statutes, § 13.05, subds. 6 and 11, the provisions of which are incorporated by reference into this contract. The HRA agrees to give JLG access to data collected or maintained by the HRA as necessary to perform JLG 's obligations under this contract. JLG agrees to maintain all data obtained from the HRA consistent with the requirements of the Minnesota Government Data Practices Act, Minn. Stat. §§ 13.02 et se . (the "Act"). JLG will not release or disclose the contents of data classified as not public to any person except at the written direction of the HRA. JLG agrees to defend and indemnify the HRA from any claim, liability, damage or loss asserted against HRA as a result of JLG 's failure to comply with the requirements of this paragraph; provided that JLG shall have.. no duty to defend or indemnify where the JLG has acted in conformance with the HRA's written directions. Upon termination of this contract, JLG agrees to return data to the HRA, as requested by the HRA. 8. NON-ASSIGNMENT JLG shall not assign, subcontract, transfer, or pledge this contract and/or the services to be performed hereunder, whether in whole or in part, without the prior written consent of the HRA. 9. MERGER AND MODIFICATION a. It is understood and agreed that the entire Agreement between the parties is contained herein and that Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof. All items referred to in this Agreement are incorporated or attached and are deemed to be part of this Agreement. b. Any material alterations, variations, modifications, 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. 10. DEFAULT AND CANCELLATION a. If JLG fails to perform any of the provisions of this Agreement or so fails to administer the work as to endanger the performance of the Agreement, this shall constitute a default. Unless the default is excused, the HRA, may upon written notice, immediately cancel the Agreement in its entirety. b. The HRA's failure to insist upon strict performance of any provision or to exercise any right under this Agreement shall not be deemed a relinquishment or waiver of the same, unless consented to in writing. Such consent shall not constitute a general waiver or relinquishment throughout the entire term of the Agreement. c. This Agreement may be canceled without cause by either party upon thirty (30) days written notice. 11. CONTRACT ADMINISTRATION In order to coordinate the services of JLG with the activities of the HRA so as to accomplish the purposes of this contract, John Stark shall manage this contract on behalf of the HRA. In addition, from time to time, meetings shall be held between JLG and HRA staff. JLG may also report directly to the HRA Board of Commissioners. 12. NOTICES Any notice or demand which must be given or made by a party hereto under the terms of this Agreement shall be in writing. Notices shall be sent as follows: Community Development Department John Stark, Assistant Director of Community Development City Hall 6700 Portland Avenue South Richfield, MN 55423 JLG Architects Lonnie Laffen 322 First Avenue North Minneapolis, MN 55401 JLG having signed this contract, and the HRA having duly approved this contract on 2004, and pursuant to such approval and the proper HRA officials having signed this contract, the parties hereto agree to be bound by the provisions herein set forth. HOUSING AND REDEVELOPMENT AUTHORITY IN AND FOR THE CITY OF RICHFIELD STATE OF MINNESOTA By: Executive Director By: Chairperson ey: n JLG Architects CDAdmin:Agreements:ProfessionService Agmt -JLG Architects architect s January 14, 2004 EXHIBIT A John Stark, AICP Manager, Community Development City ofRichfield 6700 Portland Ave. S. Richfield, MN 55423 2599 RE: Proposal for Planning Services -Cedar Avenue Corridor Dear John: Johnson Laffen Galloway Architects is pleased to submit the following proposal for Redevelopment Master Planning Refinement services to the City of Richfield HRA. We are excited about the opportunity to work with your community and the possibilities which the Cedar Avenue corridor presents. The objective of our study approach would be to solve the redevelopment problem and build community support for its fit within the adjacent established neighborhoods and ultimately the redevelopment implementation (it should be noted the final outcomes will vary from the plan as developers implement specific projects. The purpose ofthe plan is to give the community a framework to make informed decisions and to steer the projects toward a benefit to both the community and the developers). Our proposal is fomatted to include the public for increased community support: We believe the plan's success will largely be defined by the adjoining neighborhoods. We want to insure that they are stakeholders in the process and outcome. A. WorkPlan PART 1- CONCEPT PLANIVING/TIMELINE 1. Data CoIlection & Organization .........................................................................................................2/17/04 - 3/U04 a. Obtain background data from City to include base maps, previous studies, reports and planning documents. b. Photographic Documentation c. Obtain study information related to airport expansion d. Assimilate previous study work 2. Define Problem to be Solved ................................................................................................................2/17/04 - 3/1/04 a. Establish Review Committee • Possible participants include CD Sta$ IIRRA Commissioner, Council Member and Planning Commissioner. This will be a sounding board group. b. Work with CD Staff, Review and Committee to define the problem to be solved c. Formal Approval of problem definition 3. Prepare Background Information ......... ~ .g..~ ..................................................................................... UU04 - 3/15!04 a. Preliminary base data to be used to en a e ublic and define problem b. Define tools and graphics to help public understand plan and process 4. Initial Public Engagement- (Communication/ Feedback on Problem & Process) ................................................ 3/15/04 a Update on previous work.completed - focus on refinement of concepts b. Solicit feedback on previous concepts c. Identif}+ implications for not addressing or solving the problem d. If possible, forecast the problem in advance of the need to address the problem e. Develop communications plan to support effort • Establish website for posting information (hosted by either City of Richfield} f Communicate process including specific opportunities for public involvement g. Establish clear expectations regarding community involvement h. Solicit suggestions for changes in the process i. Communicate community response for the need for redevelopment back to the public j. Report back to the public MINNEAPOLIS,MN GRANDFORKS,ND 322 FirstAvenue North, Ste 303 Minneapolis, MN 55401-1618 phone 612.746.4260 facsimile 612.746.4754 PAGE i www.jlgarchitects.com 5. Prepare Planning Options ............• .............................................................................................3115/04 - 4/15/04 a. JI.G will work m tandem with the following entities to prepare initial planning concepts: • Traffic Planners (consultant to City) • Financial Planners (Ehlers will work directly for HRA) • Civil Engineering (City staffor consultant to Cityj b. Preliminarydevelopermeetings • Developers to provide initial feedback on market conditions, site concepts and pre-marketing • Retail, office & residential • Can we do more for less c. Refine concepts for presentation 6. Second Public Engagement - (Communication/Feedback on the Options) .......................................................... 4/15/04 a. Communicate options generated from process, including various options for use, density, required public improvements and financial assistance. b. Evaluate options including advantages & disadvantages c. Evaluate options using individual & small group teams to build consensus & community d. Request feedback on additional options to be investigated e. Report back to the public ConceptRefinement .........................................................................................................................4/15!04 - 5/15/04 a. Synthesize planning concepts b. Make decisions about best fit for individual pieces ofthe development corridor. This will involve the review committee. • Technical Issues • Financial Issues • Marketability • Compatibilityto adjacent/established community • Feedback from community b. Select preferred options 8. Third Public Engagement - (Commnnication/Feedback on the Selected Option) ........................................... 5115/04 a. Communicate selected option ~~~~~ b. Communicate basis for selection c. Provide evaluation including disadvantages of option d. Reaffirm problem statement, process & options e. Identify next steps for implementation £ Report back to the public 9. Approval of Concept Plan ..........................................................................................................Appro~mately6/1/04 a. Formal approval of redevelopment concept plan • Review committee forwards to HRA, Plannuig Commission & City Council PART 2 -IMPLEMENTATION I. Zoning Necessary to allow Implementation a. Possible Zoning changes b. P.U.D's c. Zoning Overlays d. Develop a "process package" to allow development to happen. 2. Architectural and Landscape Standards a. Possible Zoning changes 3. IdentifySpecificProjccts a. Required public improvements b. Private developments c. Develop RFP's for development 4. Phasing/StagingP1an B. DeWerables 1. RedevelopmentMasterPlan a. Densities b. Unit Counts & S.F. Allocations ® c. Link to Financing d. Preliminary Timetable e. Infrastructure Needs £ Identify Public Participation /Projects PAGE 2 2. DetailedArea Plans a. Specific Redevelopment zones in more detail 3. Content for Web Page a. Hosted by City of Richfield 4. Three Dimensional Model a. A three dimensional computer based virtual model ofthe entire development area. 5. Illustrative Drawings a. Sketches intended to capture character and potential of future development projects 6. EzecutiveSummary a. Printed /Bound document 7. Presentations as Required 8. Reporting to Community C. SchedulelTimetable forPart 1 of Worl~lan 1. Data Collection & Oi'ganization .................................................................................................... February 17 -March 1 2. 3 Define Problem to be Solved ........................................................................................................ February 17 -March 1 PrepazeBack roundmformati . 4 g on ..................................................................................................... March 1-March 15 Initial Public En a ement . 5. g g ............................................................................................................................... March 15 FreparePlanning OPtions ................................................................................................................ March 15 -April 15 6. 7. Second Public Engagement ......................................:....................................................................................... Apri115 Concept Refinement ........................................................................................................................... April 15 -May 15 (preliminary application concepts ready sometime dunng this period of study) 8. Third Public Engagement ............................................................................................................................... Ma 15 y 9. ... Approval of Concept Plan ........................................................................................................... Approximately June 1 D. Compensation 1. JLG Architects will perform the tasks listed in this proposal with the exception ofPart 2 -Implementation for a fixed cost of $72,055. No reimbursable expenses will be added. Following is a breakdown ofthe fined cost: 1. Data Collection & Organization ..............................................................................................................$3 967 , • Principal - 40 hours @99.19 ............................... $367 2 D f P bl b S l d . e ine ro em to e o ve ..... ............................................................................................................. $1, SS4 • Principal Architect -16 hours @99.19 ................ $1,586 • Administrative - 8 hours @ 33.60 ........................... $268 3. Prepare Background Information ................................ ........................................................................... $3, 546 • A hit /Pl rc ect anner - 20 hours @ 89.57 ................ $1,791 • Intern Architect /Planner - 20 hours @ 42.97 .........: $859 • CADD Technician - 20 hours @44.80 .................... 4. Initial Public Engagement ...:......................................... ........................................................ 908 $3 ............ , • PrincipalArchitect -20 hours @99.19 ................. $1,983 • Architect /Planner - 20 h 89 57 ours @ . ................ $1,791 • Administrative - 4 hours @ 33.60 ........................... $134 S. Prepare Planning O~tions ..................................................................................................................... $23, 287 • P i i lA h r nc pa rc rtect -60 hours @99.19 ................. $5,591 • Architect /Planner -120 hours @ 89.57 ............ $10,748 • Intern Architect /Planner -120 hours @ 42.97 ..... $5,156 • CADD Technician - 40 hours @44.80 ................. $1,792 6. Second Public Engagement ...................................................................................................................... $3,908 • PrincipalArchitect-20hours 99.19 ................. $183 • Architect /Planner - 20 hours ~a 89.57 ................ $1 791 , • Administrative - 4 hours @ 33.60 ........................... $134 7. Concept Refinemem .......................... ................................................................................................... $25, 7S5 • PtincipalArchitect-30hours @99.19 :.:.............. $2,975 • Architect /Planner -100 hours @ 89.57 .............. $857 • Intern Architect /Planner -120 hours @ 42.97 ..... $5,156 • CARD Technician - 40 hours @44.80 ................. 1,792 • Illustrator -160 hours @ 42.97 ................:. .......... $6,875 8. Third Public Engagement .............................................................•-•--...................................................... $3,908 • P i i lA hi r nc pa rc tect-20 hours 99.19.. . $1,983 • Architect /Planner - 20 hours ~a 89 57 $1 791 •-----.•.---'• . . . , • Administrative - 4 hours @ 33.60 ........................ $134 PAGE 3 9. Approval of Concept Plan ........................................................................................................................ $1,922 • Principal Architect -16 hours @99.19 ................ $1,586 • Administrative -10 hours @ 33.60 ......................... $336 TOTAL ................................................................................................................................................ $72, OSS 2 Part 2 -Implementation Services to be added by amendment if desired by C ity ofRichfield E. Miscellaneous 1. The project administrator will be Lonnie Laffen, Principal with JLG Architects. 2. JLG Hourly Rates are determined using the U.S. Government's rate calculation process resulting in a 2.42 multiplier ofactual costs (based on actual cost, multiplied by the firm's calculated overhead and a 10% profit factor). Our rates were calculated by the General Services Administration (July 03) in preparation for a contract we have signed with them to design new US Ports of Entry. 3. Ehlers & Associates will provide Financial proforina for the study and will be wntracted directly with the City ofltichfield. 4. Maxfield Research will provide housing market study /analysis as an optional piece ofthe study. This portion of the work can be added at an~ time during the study by amendment as an additional cost. 5. Civil engineering data will be required as a part of the study. JLG will work in tandem with City staffor the City's consultant to obtain the necessary engineering and infrastructure information to complete the study. 6. JLG Architects will rely on existing data for as-built site plan information, infrastructure and airport noise related study. No further surveys will be provided. 7. The study area is defined by the boundaries of Interstate 494 (south), Highway 77 (east), 62nd Street (north}and Bloomington Avenue (west). 8. One original copy of final report & executive summary will be rovided. Additional copies will be provided by JLG at an additional charge, ifrequested from City. City may reproduce as they see fit. JLG Architects are confident this planning process will provide the framework for a successful redevelopment ofthe Cedar Avenue Corridor and community support which will allow it to happen. Thank for the opportunity to submit this proposal. We look forward to hearing from you soon. Sincerely, LonnieJ. en, Johnson Laffen Gal oway Architects 322 First Avenue North Minneapolis, Minnesota 55401-1618 CC: BrucePahnborg PAGE 4 EXHIBIT B AFFIRMATIVE ACTION REQUIREMENTS On January 1, 1988, the Richfield City Council approved an affirmative action program which requires the City "to provide equality of opportunity in employment to all person and to prohibit discrimination because of race, color, religion, national origin, place of residents, political affiliation, disability, marital status, status with regard to public assistance, sex, or age in all aspects of the City's personnel policies, programs, and practices". The program further requires that the City support the various relationships with contractors, subcontracts and vendors. Therefore, requirements have been adopted for contracts as follows: a. The contractor shall submit a signed statement (Exhibit C) signifying that they are in compliance with the standards of equal employment and anti-discrimination as cited in the Civil Rights Act of 1964 as amended in 1972 by the Equal Employment Opportunity Act. b. In accordance with the City of Richfield's Affirmative Action policy, no person shall, on the ground of race, creed, color, sex, age, disability, or national origin be excluded from full employment rights in, participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program, service, or activity for which the parties received, or will receive financial assistance under the provisions of any and .all applicable federal and state laws against discrimination. The contractor will furnish all information and reports if required by the City of Richfield or by Executive Order No. 11246 and Revised Order No. 4, and by the rules and regulations and orders of the Secretary of Labor or the State of Minnesota for purposes of investigation to ascertain compliance with such rules, regulations, and orders. c. 1971 Minnesota Statutes 181.59 is made a part of this contract. See Exhibit D. EXHIBIT C STATEMENT OF COMPLIANCE The undersigned, in his/her capacity as agent for JLG, hereby states that JLG is in compliance with the standards of equal employment and anti-discrimination as cited in the Civil Rights Act of 1964 as amended in 1972 by the Equal Employment Opportunity Act. Dated: sy: Its: m EXHIBIT D 181.59 DISCRIMINATION ON ACCOUNT OF RACE, CREED, OR COLOR PROHIBITED IN CONTRACT. Every contract for or on behalf of the State of Minnesota, or any county, city, town, township, school, school district, or any other district in the state, for materials, supplies, or construction shall contain provisions by which the contractor agrees: (1) That, in the hiring of common or skilled labor for the performance of any work under any contract, or any subcontract, no contractor, material supplier, or vendor, shall, by reason of race, creed, or color, discriminate against the person or persons who are citizens of the United States or resident aliens who are qualified and available to perform the work to which the employment relates; (2) That no contractor, material supplier, or vendor, shall, in any manner, discriminate against, or intimidate, or prevent the employment of any person or persons identified in clause (1) of this section, or on being hired, prevent, or conspire to prevent, the person or persons from the performance of work under any contract on account of race, creed, or color; (3) That a violation of this section is a misdemeanor; and (4) That this contract may be canceled or terminated by the state, county, city, town, school board, or any other person authorized to grant the contracts for employment, and all money due, or to become due under the contract, may be forfeited for a second or any subsequent violation of the terms or conditions of this contract. History: 1941 c 238; 1973 c 123 art 5 s 7; 1984 c 609 s 11 m AGENDA ITEM # STAFF REPORT MICHELLE LEWIS, COMMUNITY DEVELOPMENT TECHNICIAN HOUSING AND REDEVELOPMENT AUTHORITY MEETING FEBRUARY 17, 2004 11 REPORT PREPARED BY: REPORT PRESENTER: REPORT # NAME, TITLE BRUCE PALMBORG, COMMUNITY DEVELOPMENT DIRECTOR DEPARTMENT DIRECTOR REVIEW: REVIEWED BY EXECUTIVE DIRECTOR: NAME, TITLE ITEM FOR HRA CONSIDERATION: Public hearing and approval of the attached resolution authorizing the sale of real property at 6945 Clinton Avenue to West Henne in Affordable Housin Land Trust. I. RECOMMENDED ACTION: Conduct and close the public hearing and by motion: Adopt the attached resolution authorizing the sale of the real property at 6945 Clinton Avenue; and approve the execution of appropriate documents by the Housing and Redevelopment Authority's Chair and Executive Director to complete the sale. II. BACKGROUND • The Housing and Redevelopment Authority (HRA) purchased the property and improvements at 6945 Clinton Avenue for rehabilitation under the New Home Program. Rehabilitation through a contract with Project for Pride in Living (PPL) is substantially complete. It is proposed that the HRA sell the real property (land and buildings) to West Hennepin Affordable Housing Land Trust (WHAHLT) to hold the land in a perpetual trust to maintain the affordability of the property. The HRA has required WHAHLT to sell the house to a qualifying first time homebuying family. 021704 6945 Clinton • For over 20 years the HRA has redeveloped sites under the New Home Program with housing affordable to low-to-moderate-income families. Low-to- moderate-income is defined by the U.S. Department of Housing and Urban Development. In this case, the home will be sold to a first time homebuyer earning 80% or less of the Twin Cities area median income (for example, $65,550 for a family of six). • WHAHLT is a nonprofit organization committed to the creation and preservation of affordable housing options in suburban Hennepin County. The HRA worked with WHAHLT in 2002 to make another Richfield home affordable to a first time homebuyer. • The buyers will work with WHAHLT and the HRA to be qualified to buy the property. The buyers have already been approved by the lender, Wells Fargo. III. BASIS OF RECOMMENDATION A. POLICY • The sale to WHAHLT will further the HRA's commitment to providing affordable housing opportunities to first time homebuyers. • The rehabilitated home improves the neighborhood and Richfield's primary asset, its existing housing stock. • The HRA funds spent on rehabilitation will be recouped through the process of sale to WHAHLT and the subsequent sale to the buyers. B. CRITICAL ISSUES • At acquisition, the property was severely neglected and behind in property taxes. The rehabilitated property has a higher tax value and improves the neighborhood. • A qualified buyer has been identified. WHAHLT is ready to proceed with the property sale to buyers, who are currently renting in Richfield. The family consists of two adults and four children. • Sale from the HRA to WHAHLT would occur on the same day as WHAHLT's sale to the buyers. Sale could occur in early April. C. FINANCIAL • $115,000 in CDBG funds were used to acquire the property as part of the New Home Program. • $158,950 was contracted to be spent on rehabilitation costs. The sale price to WHAHLT will be $160,000: $158,950 for the rehabilitation costs, and $1,050 will go toward HRA's holding costs. • Sale to WHAHLT will reimburse the HRA's rehabilitation costs. • The property has an appraised value of $207,000. The breakdown of the sale to the buyer will be: $120,000 first mortgage from the lender; $4,000 downpayment from the buyer; and $83,000 in land value (as determined by the lender's appraisal) is deferred because the land is held intrust by WHAHLT for the entire time of the buyer's ownership. Future buyers would also benefit from the deferred land value. D. LEGAL • A notice of public hearing was published February 5, 2004 in the Sun Current. IV. ALTERNATIVE RECONIMENDATION(S~ • Do not sell the property to WHAHLT. • Sell the property directly to a first time homebuyer and provide a second mortgage in the amount of the difference between the sale price and the amount affordable to a qualified first time homebuyer. V. ATTAC~IMENTS • Resolution VI. PRINCIPAL PARTIES EXPECTED AT MEETING • N/A m HRA RESOLUTION NO. RESOLUTION AUTHORIZING THE SALE OF REAL PROPERTY LOCATED AT 6945 CLINTON AVENUE TO WEST HENNEPIN AFFORDABLE HOUSING LAND TRUST WHEREAS, the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota (HRA) desires to sell certain real property and improvements, described as follows, pursuant to and in furtherance of the New Home Program adopted by the HRA; said property being described as: Lot 9, Block 3, D.L. Tate's Addition WHEREAS, the HRA is authorized to sell real property and improvements within its area of operation after public hearing; and WHEREAS, a nonprofit land trust, West Hennepin Affordable Housing Land Trust (WHAHLT) has been identified as the purchaser of the real property; and WHEREAS, a qualified first time homebuyer has been selected and lender- approved to purchase the property improvements from WHAHLT; and WHEREAS, a public hearing has been held after proper public notice. NOW, THEREFORE, BE IT RESOLVED, by the City of Richfield Housing and Redevelopment Authority: 1. A public hearing has been held and the real property at 6945 Clinton Avenue is authorized to be sold for $160,000 to WHAHLT. 2. The Chairperson and Executive Director are authorized to execute the appropriate documents and agreements to effectuate the sale to WHAHLT and subsequently to the selected first time homebuyer. Adopted by the Housing and Redevelopment Authority in and for the City of Richfield, Minnesota this 17th day of February 2004. Thomas E. Harms, Chair ATTEST: Kristal Stokes, Secretary 021704 6945 Clinton AGENDA ITEM # 3A REPORT # 10 STAFF REPORT HOUSING AND REDEVELOPMENT AUTHORITY MEETING FEBRUARY 17, 2004 REPORT PREPARED BY: REPORT PRESENTER: PAM BOOKHOUT, REHABILITATION SPECIALIST NAME TITLE BRUCE NORDQUIST HOUSING AND REDEVELOPMENT MANAGER NAME, TITLE DEPARTMENT DIRECTOR REVIEW: SIGNATURE REVIEWED BY EXECUTIVE DIRECTOR: ITEM FOR HRA CONSIDERATION: Authorize Hennepin County HRA to administer Minnesota Housing Finance Agency (MHFA) loan funds in Richfield. I. RECOMMENDED ACTION: By Motion: Authorize Hennepin County HRA to administer MHFA's Fix-U Fund loan ro rams in Richfield. II. BACKGROUND The Minnesota Housing Finance Agency (MHFA) has made their traditional Fix-Up Fund and Community Fix-Up Fund second mortgage loan programs available to communities over the years through participating lenders. Both loans provide eligible households with home improvement funds for general maintenance, energy improvements, and value-added improvements. The loans can be further described: Re uirement Fix-U Fund Communi Fix-U Fund Maximum Income of borrower $75,000 $87,000 Maximum Loan Amount $25,000 $35,000 Current Interest Rate 5.25% 5.0% Loan Availabili Statewide Tar eted Nei hborhoods Inclusion of the Hennepin County HRA as a lender for these programs would broaden the availability of the Community Fix-Up Funds to Richfield residents with the highest incomes and loan amounts. Targeting to all homes that are 20 years old or older makes this possible. III. BASIS OF RECOMMENDATION A. POLICY • MHFA Fix-Up Fund loan programs provide another option for financing home improvements. • The loans are currently available to Richfield residents. • Adding Hennepin County HRA as a lender would increase borrowers' vendor options. B. CRITICAL ISSUES • Other participating lenders, Wells Fargo and Community Revitalization Resources, would continue to have the loans available for Richfield residents. • Funds would be targeted at homes that are at least 20 years old. Interested borrowers would need to meet all other MHFA eligibility requirements. C. FINANCIAL • Loan funds from MHFA are available on an ongoing basis. No administrative expenses are incurred by the Richfield HRA. D. LEGAL • The Hennepin County HRA cannot administer programs in Richfield without Richfield HRA approval in the form of a motion. IV. ALTERNATIVE RECOMMENDATION(S~ • Do not allow Hennepin County HRA to be a participating lender. V. ATTACHMENTS • None VI. PRINCIPAL PARTIES EXPECTED AT MEETING • None